| Loans and Allowance for Loan and Lease Losses |
Loans and Allowance for Loan and Lease Losses The Company’s loan portfolio includes loans acquired in the FSB Acquisition. Residential loans acquired in the FSB Acquisition are covered under the Single Family Shared-Loss Agreement (the “covered loans”). Loans originated or purchased since the FSB Acquisition (“new loans”) are not covered by the Loss Sharing Agreements and, effective May 21, 2014, commercial and consumer loans acquired in the FSB Acquisition are no longer covered under the Loss Sharing Agreements. Loans acquired in the FSB Acquisition may be further segregated between those acquired with evidence of deterioration in credit quality since origination (“Acquired Credit Impaired” or “ACI” loans) and those acquired without evidence of deterioration in credit quality since origination (“non-ACI” loans). Loans consisted of the following at the dates indicated (dollars in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2014 | | Non-Covered Loans | | Covered Loans | | | | Percent of Total | | New Loans | | ACI | | ACI | | Non-ACI | | Total | | Residential: | |
| | |
| | |
| | |
| | |
| | |
| 1-4 single family residential | $ | 2,281,342 |
| | $ | — |
| | $ | 915,189 |
| | $ | 60,475 |
| | $ | 3,257,006 |
| | 29.5 | % | Home equity loans and lines of credit | 1,680 |
| | — |
| | 26,584 |
| | 109,250 |
| | 137,514 |
| | 1.2 | % | | 2,283,022 |
| | — |
| | 941,773 |
| | 169,725 |
| | 3,394,520 |
| | 30.7 | % | Commercial: | | | | | | | | | | | | Multi-family | 1,505,723 |
| | 24,859 |
| | — |
| | — |
| | 1,530,582 |
| | 13.8 | % | Commercial real estate | | | | | | | | | | | | Owner occupied | 957,657 |
| | 37,008 |
| | — |
| | — |
| | 994,665 |
| | 9.0 | % | Non-owner occupied | 1,452,444 |
| | 32,374 |
| | — |
| | — |
| | 1,484,818 |
| | 13.4 | % | Construction and land | 137,412 |
| | 1,994 |
| | — |
| | — |
| | 139,406 |
| | 1.3 | % | Commercial and industrial | 3,049,280 |
| | 1,329 |
| | — |
| | — |
| | 3,050,609 |
| | 27.6 | % | Lease financing | 436,714 |
| | — |
| | — |
| | — |
| | 436,714 |
| | 4.0 | % | | 7,539,230 |
| | 97,564 |
| | — |
| | — |
| | 7,636,794 |
| | 69.1 | % | Consumer | 21,204 |
| | 51 |
| | — |
| | — |
| | 21,255 |
| | 0.2 | % | Total loans | 9,843,456 |
| | 97,615 |
| | 941,773 |
| | 169,725 |
| | 11,052,569 |
| | 100.0 | % | Premiums, discounts and deferred fees and costs, net | 44,778 |
| | — |
| | — |
| | (11,571 | ) | | 33,207 |
| | | Loans net of premiums, discounts and deferred fees and costs | 9,888,234 |
| | 97,615 |
| | 941,773 |
| | 158,154 |
| | 11,085,776 |
| | | Allowance for loan and lease losses | (73,079 | ) | | — |
| | — |
| | (5,789 | ) | | (78,868 | ) | | | Loans, net | $ | 9,815,155 |
| | $ | 97,615 |
| | $ | 941,773 |
| | $ | 152,365 |
| | $ | 11,006,908 |
| | |
| | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2013 | | Non-Covered Loans | | Covered Loans | | | | Percent of Total | | New Loans | | ACI | | ACI | | Non-ACI | | Total | | Residential: | |
| | |
| | |
| | |
| | |
| | |
| 1-4 single family residential | $ | 1,800,332 |
| | $ | — |
| | $ | 1,057,012 |
| | $ | 70,378 |
| | $ | 2,927,722 |
| | 32.4 | % | Home equity loans and lines of credit | 1,535 |
| | — |
| | 39,602 |
| | 127,807 |
| | 168,944 |
| | 1.9 | % | | 1,801,867 |
| | — |
| | 1,096,614 |
| | 198,185 |
| | 3,096,666 |
| | 34.3 | % | Commercial: | | | | | | | | | | | | Multi-family | 1,097,872 |
| | 8,093 |
| | 33,354 |
| | — |
| | 1,139,319 |
| | 12.6 | % | Commercial real estate | | | | | | | | | | | | Owner occupied | 712,844 |
| | 5,318 |
| | 49,861 |
| | 689 |
| | 768,712 |
| | 8.5 | % | Non-owner occupied | 946,543 |
| | 1,449 |
| | 93,089 |
| | 52 |
| | 1,041,133 |
| | 11.5 | % | Construction and land | 138,091 |
| | — |
| | 10,600 |
| | 729 |
| | 149,420 |
| | 1.7 | % | Commercial and industrial | 2,266,407 |
| | — |
| | 6,050 |
| | 6,234 |
| | 2,278,691 |
| | 25.3 | % | Lease financing | 337,382 |
| | — |
| | — |
| | — |
| | 337,382 |
| | 3.7 | % | | 5,499,139 |
| | 14,860 |
| | 192,954 |
| | 7,704 |
| | 5,714,657 |
| | 63.3 | % | Consumer | 213,107 |
| | — |
| | 1,679 |
| | — |
| | 214,786 |
| | 2.4 | % | Total loans | 7,514,113 |
| | 14,860 |
| | 1,291,247 |
| | 205,889 |
| | 9,026,109 |
| | 100.0 | % | Premiums, discounts and deferred fees and costs, net | 40,748 |
| | — |
| | — |
| | (13,248 | ) | | 27,500 |
| | | Loans net of premiums, discounts and deferred fees and costs | 7,554,861 |
| | 14,860 |
| | 1,291,247 |
| | 192,641 |
| | 9,053,609 |
| | | Allowance for loan and lease losses | (57,330 | ) | | — |
| | (2,893 | ) | | (9,502 | ) | | (69,725 | ) | | | Loans, net | $ | 7,497,531 |
| | $ | 14,860 |
| | $ | 1,288,354 |
| | $ | 183,139 |
| | $ | 8,983,884 |
| | |
At September 30, 2014 and December 31, 2013, the unpaid principal balance (“UPB”) of ACI loans was $2.7 billion and $3.3 billion, respectively.
During the three and nine months ended September 30, 2014 and 2013, the Company purchased 1-4 single family residential loans totaling $234 million, $614 million, $331 million, and $906 million, respectively. At September 30, 2014, the Company had pledged real estate loans with UPB of approximately $6.9 billion and recorded investment of approximately $5.4 billion as security for FHLB advances.
The accretable yield on ACI loans represents the amount by which undiscounted expected future cash flows exceed recorded investment. Changes in the accretable yield on ACI loans for the nine months ended September 30, 2014 and the year ended December 31, 2013 were as follows (in thousands):
| | | | | Balance, December 31, 2012 | $ | 1,286,066 |
| Reclassifications from non-accretable difference | 282,952 |
| Accretion | (410,446 | ) | Balance, December 31, 2013 | 1,158,572 |
| Reclassifications from non-accretable difference | 135,521 |
| Accretion | (262,562 | ) | Balance, September 30, 2014 | $ | 1,031,531 |
|
Loan sales During the periods indicated, the Company sold covered 1-4 single family residential loans to third parties on a non-recourse basis. The following table summarizes the impact of these transactions (in thousands):
| | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended
September 30, | | 2014 | | 2013 | | 2014 | | 2013 | UPB of loans sold | $ | 71,301 |
| | $ | 62,963 |
| | $ | 205,570 |
| | $ | 165,201 |
| | | | | | | | | Cash proceeds, net of transaction costs | $ | 52,279 |
| | $ | 32,639 |
| | $ | 138,726 |
| | $ | 85,821 |
| Recorded investment in loans sold | 36,241 |
| | 23,694 |
| | 106,163 |
| | 56,196 |
| Net pre-tax impact on earnings, excluding gain (loss) on FDIC indemnification | $ | 16,038 |
| | $ | 8,945 |
| | $ | 32,563 |
| | $ | 29,625 |
| | | | | | | | | Gain (loss) on sale of covered loans | $ | 3,667 |
| | $ | (4,286 | ) | | $ | 4,624 |
| | $ | (9,368 | ) | Proceeds recorded in interest income | 12,371 |
| | 13,231 |
| | 27,939 |
| | 38,993 |
| | $ | 16,038 |
| | $ | 8,945 |
| | $ | 32,563 |
| | $ | 29,625 |
| | | | | | | | | Gain (loss) on FDIC indemnification | $ | (4,068 | ) | | $ | 5,626 |
| | $ | (2,823 | ) | | $ | 11,794 |
|
For the three and nine months ended September 30, 2014 and 2013, covered 1-4 single family residential loans with UPB of $16 million, $45 million, $26 million, and $76 million, respectively, were sold from a pool of ACI loans with a zero carrying value. Proceeds of the sale of loans from this pool, representing realization of accretable yield, were recorded in interest income. The gain or loss on the sale of loans from the remaining pools, representing the difference between the recorded investment and consideration received, was recorded in “Gain (loss) on sale of loans, net” in the accompanying consolidated statements of income.
During the nine months ended September 30, 2014, in accordance with the terms of the Commercial Shared-Loss Agreement, the Bank requested and received approval from the FDIC to sell certain covered commercial and consumer loans. These loans were transferred to loans held for sale at the lower of carrying value or fair value, determined at the individual loan level, upon receipt of FDIC approval and sold in March 2014. The reduction of carrying value to fair value for specific loans was recognized in the provision for loan losses.
The following table summarizes the pre-tax impact of these sales, as reflected in the consolidated statements of income for the nine months ended September 30, 2014 (in thousands):
| | | | | Cash proceeds, net of transaction costs | $ | 101,023 |
| | | Carrying value of loans transferred to loans held for sale | 86,521 |
| Provision for loan losses recorded upon transfer to loans held for sale | (3,469 | ) | Recorded investment in loans sold | 83,052 |
| Gain on sale of covered loans | $ | 17,971 |
| | | Loss on FDIC indemnification | $ | (2,085 | ) |
During the nine months ended September 30, 2014, the Company made the decision to terminate its indirect auto lending activities and sold indirect auto loans with a recorded investment of $302.8 million. The Company received cash proceeds, net of transaction costs, of $303.0 million and recognized a gain on the sale totaling $0.2 million, which was recoded in "Gain (loss) on sale of loans, net" in the accompanying consolidated statement of income for the nine months ended September 30, 2014. The total impact of this transaction on pre-tax earnings was a net increase of $1.8 million, inclusive of the gain on sale, exit costs and elimination of the related allowance for loan losses.
Allowance for loan and lease losses Activity in the allowance for loan and lease losses (“ALLL”) is summarized as follows for the periods indicated (in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | September 30, 2014 | | September 30, 2013 | | Residential | | Commercial | | Consumer | | Total | | Residential | | Commercial | | Consumer | | Total | Beginning balance | $ | 14,285 |
| | $ | 60,695 |
| | $ | 491 |
| | $ | 75,471 |
| | $ | 18,115 |
| | $ | 39,514 |
| | $ | 802 |
| | $ | 58,431 |
| Provision for (recovery of) loan losses: | | | | | | | | | | | | | | | |
| ACI loans | — |
| | — |
| | — |
| | — |
| | — |
| | (842 | ) | | — |
| | (842 | ) | Non-ACI loans | (450 | ) | | (450 | ) | | — |
| | (900 | ) | | (1,815 | ) | | (180 | ) | | — |
| | (1,995 | ) | New loans | 355 |
| | 6,195 |
| | (263 | ) | | 6,287 |
| | 963 |
| | 3,606 |
| | 872 |
| | 5,441 |
| Total provision | (95 | ) | | 5,745 |
| | (263 | ) | | 5,387 |
| | (852 | ) |
| 2,584 |
|
| 872 |
| | 2,604 |
| Charge-offs: | | | | | | | | | | | | | | | |
| ACI loans | — |
| | — |
| | — |
| | — |
| | — |
| | (117 | ) | | — |
| | (117 | ) | Non-ACI loans | (1,052 | ) | | — |
| | — |
| | (1,052 | ) | | (1,317 | ) | | — |
| | — |
| | (1,317 | ) | New loans | — |
| | (1,469 | ) | | (173 | ) | | (1,642 | ) | | (10 | ) | | (458 | ) | | (118 | ) | | (586 | ) | Total charge-offs | (1,052 | ) | | (1,469 | ) | | (173 | ) | | (2,694 | ) | | (1,327 | ) | | (575 | ) | | (118 | ) | | (2,020 | ) | Recoveries: | | | | | | | | | | | | | | | |
| Non-ACI loans | 4 |
| | 450 |
| | — |
| | 454 |
| | 3 |
| | 144 |
| | — |
| | 147 |
| New loans | — |
| | 122 |
| | 128 |
| | 250 |
| | — |
| | 417 |
| | 40 |
| | 457 |
| Total recoveries | 4 |
| | 572 |
| | 128 |
| | 704 |
| | 3 |
| | 561 |
| | 40 |
| | 604 |
| Ending balance | $ | 13,142 |
| | $ | 65,543 |
| | $ | 183 |
| | $ | 78,868 |
| | $ | 15,939 |
| | $ | 42,084 |
| | $ | 1,596 |
| | $ | 59,619 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Nine Months Ended | | September 30, 2014 | | September 30, 2013 | | Residential | | Commercial | | Consumer | | Total | | Residential | | Commercial | | Consumer | | Total | Beginning balance | $ | 15,353 |
| | $ | 52,185 |
| | $ | 2,187 |
| | $ | 69,725 |
| | $ | 19,164 |
| | $ | 39,543 |
| | $ | 414 |
| | $ | 59,121 |
| Provision for (recovery of) loan losses: | | | | | | | | | | | | | | | |
| ACI loans | — |
| | 1,988 |
| | 324 |
| | 2,312 |
| | — |
| | (2,440 | ) | | — |
| | (2,440 | ) | Non-ACI loans | (1,101 | ) | | (418 | ) | | — |
| | (1,519 | ) | | 4,241 |
| | (2,789 | ) | | — |
| | 1,452 |
| New loans | 1,070 |
| | 20,529 |
| | (1,410 | ) | | 20,189 |
| | (4,423 | ) | | 23,554 |
| | 1,309 |
| | 20,440 |
| Total provision | (31 | ) | | 22,099 |
| | (1,086 | ) | | 20,982 |
| | (182 | ) | | 18,325 |
| | 1,309 |
| | 19,452 |
| Charge-offs: | | | | | | | | | |
| | |
| | |
| | |
| ACI loans | — |
| | (4,881 | ) | | (324 | ) | | (5,205 | ) | | — |
| | (2,234 | ) | | — |
| | (2,234 | ) | Non-ACI loans | (2,196 | ) | | (490 | ) | | — |
| | (2,686 | ) | | (3,051 | ) | | (172 | ) | | — |
| | (3,223 | ) | New loans | — |
| | (4,286 | ) | | (1,083 | ) | | (5,369 | ) | | (10 | ) | | (16,628 | ) | | (199 | ) | | (16,837 | ) | Total charge-offs | (2,196 | ) | | (9,657 | ) | | (1,407 | ) | | (13,260 | ) | | (3,061 | ) | | (19,034 | ) | | (199 | ) | | (22,294 | ) | Recoveries: | | | | | | | | | |
| | |
| | |
| | |
| Non-ACI loans | 16 |
| | 476 |
| | — |
| | 492 |
| | 18 |
| | 2,622 |
| | — |
| | 2,640 |
| New loans | — |
| | 440 |
| | 489 |
| | 929 |
| | — |
| | 628 |
| | 72 |
| | 700 |
| Total recoveries | 16 |
| | 916 |
| | 489 |
| | 1,421 |
| | 18 |
| | 3,250 |
| | 72 |
| | 3,340 |
| Ending balance | $ | 13,142 |
| | $ | 65,543 |
| | $ | 183 |
| | $ | 78,868 |
| | $ | 15,939 |
| | $ | 42,084 |
| | $ | 1,596 |
| | $ | 59,619 |
|
The impact of provisions for (recoveries of) losses on covered loans is significantly mitigated by increases (decreases) in the FDIC indemnification asset, recorded in the consolidated statements of income line item “Net loss on FDIC indemnification.”
The following table presents information about the balance of the ALLL and related loans at the dates indicated (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2014 | | December 31, 2013 | | Residential | | Commercial | | Consumer | | Total | | Residential | | Commercial | | Consumer | | Total | Allowance for loan and lease losses: | | | | | | | | | |
| | |
| | |
| | |
| Ending balance | $ | 13,142 |
| | $ | 65,543 |
| | $ | 183 |
| | $ | 78,868 |
| | $ | 15,353 |
| | $ | 52,185 |
| | $ | 2,187 |
| | $ | 69,725 |
| Ending balance: non-ACI and new loans individually evaluated for impairment | $ | 1,009 |
| | $ | 4,131 |
| | $ | — |
| | $ | 5,140 |
| | $ | 855 |
| | $ | 9,467 |
| | $ | — |
| | $ | 10,322 |
| Ending balance: non-ACI and new loans collectively evaluated for impairment | $ | 12,133 |
| | $ | 61,412 |
| | $ | 183 |
| | $ | 73,728 |
| | $ | 14,498 |
| | $ | 39,825 |
| | $ | 2,187 |
| | $ | 56,510 |
| Ending balance: ACI | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 2,893 |
| | $ | — |
| | $ | 2,893 |
| Ending balance: non-ACI | $ | 5,789 |
| | $ | — |
| | $ | — |
| | $ | 5,789 |
| | $ | 9,070 |
| | $ | 432 |
| | $ | — |
| | $ | 9,502 |
| Ending balance: new loans | $ | 7,353 |
| | $ | 65,543 |
| | $ | 183 |
| | $ | 73,079 |
| | $ | 6,283 |
| | $ | 48,860 |
| | $ | 2,187 |
| | $ | 57,330 |
| Loans: | | | | | | | | | |
| | |
| | |
| | 0 |
| Ending balance | $ | 3,418,601 |
| | $ | 7,645,938 |
| | $ | 21,237 |
| | $ | 11,085,776 |
| | $ | 3,111,167 |
| | $ | 5,720,722 |
| | $ | 221,720 |
| | $ | 9,053,609 |
| Ending balance: non-ACI and new loans individually evaluated for impairment | $ | 6,341 |
| | $ | 24,228 |
| | $ | — |
| | $ | 30,569 |
| | $ | 5,663 |
| | $ | 22,584 |
| | $ | — |
| | $ | 28,247 |
| Ending balance: non-ACI and new loans collectively evaluated for impairment | $ | 2,470,487 |
| | $ | 7,524,146 |
| | $ | 21,186 |
| | $ | 10,015,819 |
| | $ | 2,008,890 |
| | $ | 5,490,324 |
| | $ | 220,041 |
| | $ | 7,719,255 |
| Ending balance: ACI loans | $ | 941,773 |
| | $ | 97,564 |
| | $ | 51 |
| | $ | 1,039,388 |
| | $ | 1,096,614 |
| | $ | 207,814 |
| | $ | 1,679 |
| | $ | 1,306,107 |
|
Credit quality information New commercial relationships on non-accrual status with internal risk ratings of substandard or doubtful and with committed balances greater than or equal to $750,000 as well as loans that have been modified in troubled debt restructurings (“TDRs”) are individually evaluated for impairment. ACI loans or loan pools are considered to be impaired when there has been further deterioration in the cash flows expected at acquisition plus any additional cash flows expected to be collected arising from changes in estimates after acquisition, other than due to decreases in interest rate indices and changes in prepayment assumptions. Discount continues to be accreted on ACI loans or pools as long as there are expected future cash flows in excess of the current carrying amount; therefore, these loans are not classified as non-accrual even though they may be contractually delinquent. ACI 1-4 single family residential and home equity loans accounted for in pools are evaluated for impairment on a pool basis and the amount of any impairment is measured based on the expected aggregate cash flows of the pools. ACI commercial and commercial real estate loans are evaluated individually for impairment.
The tables below present information about loans or pools identified as impaired at the dates indicated (in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2014 | | December 31, 2013 | | Recorded Investment | | UPB | | Related Specific Allowance | | Recorded Investment | | UPB | | Related Specific Allowance | New loans: | |
| | |
| | |
| | |
| | |
| | |
| With no specific allowance recorded: | |
| | |
| | |
| | |
| | |
| | |
| Commercial real estate | | | | | | |
|
| |
|
| | | Owner occupied | $ | 3,042 |
| | $ | 3,019 |
| | $ | — |
| | $ | 1,751 |
| | $ | 1,754 |
| | $ | — |
| Non-owner occupied | 1,355 |
| | 1,355 |
| | — |
| | 1,444 |
| | 1,444 |
| | — |
| Commercial and industrial | 5,197 |
| | 5,192 |
| | — |
| | — |
| | — |
| | — |
| With a specific allowance recorded: | | | | | | | |
| | |
| | |
| Commercial and industrial | 13,621 |
| | 13,605 |
| | 3,692 |
| | 16,048 |
| | 16,055 |
| | 8,696 |
| Lease financing | 1,013 |
| | 1,013 |
| | 439 |
| | 1,345 |
| | 1,345 |
| | 771 |
| Total: | | | | | | | |
| | |
| | |
| Residential | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| Commercial | 24,228 |
| | 24,184 |
| | 4,131 |
| | 20,588 |
| | 20,598 |
| | 9,467 |
| | $ | 24,228 |
| | $ | 24,184 |
| | $ | 4,131 |
| | $ | 20,588 |
| | $ | 20,598 |
| | $ | 9,467 |
| Non-ACI loans: | | | | | | | |
| | |
| | |
| With no specific allowance recorded: | | | | | | | |
| | |
| | |
| 1-4 single family residential | $ | 257 |
| | $ | 307 |
| | $ | — |
| | $ | 168 |
| | $ | 198 |
| | $ | — |
| Home equity loans and lines of credit | 1,819 |
| | 1,849 |
| | — |
| | 1,703 |
| | 1,734 |
| | — |
| Commercial and industrial | — |
| | — |
| | — |
| | 1,996 |
| | 1,999 |
| | — |
| With a specific allowance recorded: | | | | | | | |
| | |
| | |
| 1-4 single family residential | 3,513 |
| | 4,193 |
| | 971 |
| | 3,564 |
| | 4,203 |
| | 827 |
| Home equity loans and lines of credit | 752 |
| | 765 |
| | 38 |
| | 228 |
| | 232 |
| | 28 |
| Total: | | | | | | | |
| | |
| | |
| Residential | $ | 6,341 |
| | $ | 7,114 |
| | $ | 1,009 |
| | $ | 5,663 |
| | $ | 6,367 |
| | $ | 855 |
| Commercial | — |
| | — |
| | — |
| | 1,996 |
| | 1,999 |
| | — |
| | $ | 6,341 |
| | $ | 7,114 |
| | $ | 1,009 |
| | $ | 7,659 |
| | $ | 8,366 |
| | $ | 855 |
| ACI loans: | | | | | | | | | | | | With no specific allowance recorded: | | | | | | | | | | | | Commercial real estate | | | | | | | | | | | | Non-owner occupied | $ | — |
| | $ | — |
| | $ | — |
| | $ | 384 |
| | $ | 406 |
| | $ | — |
| Construction and land | — |
| | — |
| | — |
| | 567 |
| | 588 |
| | — |
| With a specific allowance recorded: | | | | | | | | | | | | Multi-family | — |
| | — |
| | — |
| | 3,478 |
| | 3,459 |
| | 323 |
| Commercial real estate | | | | | | | | | | | | Owner occupied | — |
| | — |
| | — |
| | 2,643 |
| | 2,812 |
| | 369 |
| Non-owner occupied | — |
| | — |
| | — |
| | 32,436 |
| | 37,392 |
| | 1,444 |
| Construction and land | — |
| | — |
| | — |
| | 1,686 |
| | 1,500 |
| | 192 |
| Commercial and industrial | — |
| | — |
| | — |
| | 3,932 |
| | 4,262 |
| | 565 |
| Total: | | | | | | | | | | | | Commercial | $ | — |
| | $ | — |
| | $ | — |
| | $ | 45,126 |
| | $ | 50,419 |
| | $ | 2,893 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 45,126 |
| | $ | 50,419 |
| | $ | 2,893 |
|
Interest income recognized on impaired loans after impairment was not significant for any of the periods presented. The following tables present the average recorded investment in impaired loans for the periods indicated (in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | 2014 | | 2013 | | New Loans | | Non-ACI Loans | | ACI Loans | | New Loans | | Non-ACI Loans | | ACI Loans | Residential: | |
| | |
| | | | |
| | |
| | | 1-4 single family residential | $ | — |
| | $ | 3,727 |
| | $ | — |
| | $ | — |
| | $ | 3,907 |
| | $ | — |
| Home equity loans and lines of credit | — |
| | 2,719 |
| | — |
| | — |
| | 1,727 |
| | — |
| | — |
| | 6,446 |
| | — |
| | — |
| | 5,634 |
| | — |
| Commercial: | | | | | | | | | | | | Multi-family | — |
| | — |
| | — |
| | — |
| | — |
| | 3,092 |
| Commercial real estate | | | | | | | | | | | | Owner occupied | 3,416 |
| | — |
| | — |
| | 920 |
| | — |
| | 2,752 |
| Non-owner occupied | 1,370 |
| | — |
| | — |
| | 1,493 |
| | — |
| | 15,132 |
| Construction and land | — |
| | — |
| | — |
| | — |
| | — |
| | 2,907 |
| Commercial and industrial | 15,105 |
| | — |
| | — |
| | 16,756 |
| | 2,146 |
| | 5,326 |
| Lease financing | 1,096 |
| | — |
| | — |
| | 1,428 |
| | — |
| | — |
| | 20,987 |
| | — |
| | — |
| | 20,597 |
| | 2,146 |
| | 29,209 |
| | $ | 20,987 |
| | $ | 6,446 |
| | $ | — |
| | $ | 20,597 |
| | $ | 7,780 |
| | $ | 29,209 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | Nine Months Ended September 30, | | 2014 | | 2013 | | New Loans | | Non-ACI Loans | | ACI Loans | | New Loans | | Non-ACI Loans | | ACI Loans | Residential: | |
| | |
| | | | |
| | |
| | | 1-4 single family residential | $ | — |
| | $ | 3,723 |
| | $ | — |
| | $ | — |
| | $ | 3,930 |
| | $ | — |
| Home equity loans and lines of credit | — |
| | 2,383 |
| | — |
| | — |
| | 1,385 |
| | — |
| | — |
| | 6,106 |
| | — |
| | — |
| | 5,315 |
| | — |
| Commercial: | | | | | | | | | | | | Multi-family | — |
| | — |
| | 870 |
| | 912 |
| | — |
| | 5,136 |
| Commercial real estate | | | | | | | | | | | | Owner occupied | 2,941 |
| | — |
| | 661 |
| | 460 |
| | — |
| | 3,414 |
| Non-owner occupied | 1,400 |
| | — |
| | 8,205 |
| | 1,521 |
| | 15 |
| | 20,399 |
| Construction and land | — |
| | — |
| | 563 |
| | — |
| | — |
| | 4,278 |
| Commercial and industrial | 14,827 |
| | 499 |
| | 983 |
| | 17,034 |
| | 2,531 |
| | 6,197 |
| Lease financing | 1,179 |
| | — |
| | — |
| | 1,511 |
| | — |
| | — |
| | 20,347 |
| | 499 |
| | 11,282 |
| | 21,438 |
| | 2,546 |
| | 39,424 |
| | $ | 20,347 |
| | $ | 6,605 |
| | $ | 11,282 |
| | $ | 21,438 |
| | $ | 7,861 |
| | $ | 39,424 |
|
The following table presents the recorded investment in new and non-ACI loans on non-accrual status at the dates indicated (in thousands):
| | | | | | | | | | | | | | | | | | September 30, 2014 | | December 31, 2013 | | New Loans | | Non-ACI Loans | | New Loans | | Non-ACI Loans | Residential: | |
| | |
| | |
| | |
| 1-4 single family residential | $ | 50 |
| | $ | 372 |
| | $ | 194 |
| | $ | 293 |
| Home equity loans and lines of credit | — |
| | 3,825 |
| | — |
| | 6,559 |
| | 50 |
| | 4,197 |
| | 194 |
| | 6,852 |
| Commercial: | | | | | |
| | |
| Commercial real estate | | | | |
|
| |
|
| Owner occupied | 3,421 |
| | — |
| | 2,785 |
| | — |
| Non-owner occupied | 1,355 |
| | — |
| | 1,444 |
| | 52 |
| Construction and land | 218 |
| | — |
| | 244 |
| | — |
| Commercial and industrial | 18,365 |
| | — |
| | 16,612 |
| | 2,765 |
| Lease financing | 1,013 |
| | — |
| | 1,370 |
| | — |
| | 24,372 |
| | — |
| | 22,455 |
| | 2,817 |
| Consumer | 20 |
| | — |
| | 75 |
| | — |
| | $ | 24,442 |
| | $ | 4,197 |
| | $ | 22,724 |
| | $ | 9,669 |
|
As of December 31, 2013, discount was no longer being accreted on ACI commercial real estate loans with a carrying value of $1 million.
There were no new and non-ACI loans contractually delinquent by 90 days or more and still accruing at September 30, 2014. New and non-ACI loans contractually delinquent by 90 days or more and still accruing totaled $0.5 million at December 31, 2013. The amount of additional interest income that would have been recognized on non-accrual loans had they performed in accordance with their contractual terms is not material. Management considers delinquency status to be the most meaningful indicator of the credit quality of 1-4 single family residential, home equity and consumer loans. Delinquency statistics are updated at least monthly. See "Aging of loans" below for more information on the delinquency status of loans. Original loan to value ratio (“LTV”) and original FICO score are also important indicators of credit quality for the new 1-4 single family residential portfolio. Internal risk ratings are considered the most meaningful indicator of credit quality for commercial loans. Internal risk ratings are a key factor in identifying loans that are individually evaluated for impairment and impact management’s estimates of loss factors used in determining the amount of the ALLL. Internal risk ratings are updated on a continuous basis. Relationships with balances in excess of $1 million are re-evaluated at least annually and more frequently if circumstances indicate that a change in risk rating may be warranted. Loans exhibiting potential credit weaknesses that deserve management’s close attention and that if left uncorrected may result in deterioration of the repayment capacity of the borrower are categorized as special mention. Loans with well-defined credit weaknesses, including payment defaults, declining collateral values, frequent overdrafts, operating losses, increasing balance sheet leverage, inadequate cash flow, project cost overruns, unreasonable construction delays, past due real estate taxes or exhausted interest reserves, are assigned an internal risk rating of substandard. A loan with a weakness so severe that collection in full is highly questionable or improbable will be assigned an internal risk rating of doubtful.
The following tables summarize key indicators of credit quality for the Company's loans at the dates indicated. Amounts are net of premiums, discounts and deferred fees and costs (in thousands): 1-4 Single Family Residential credit exposure for new loans, based on original LTV and FICO score:
| | | | | | | | | | | | | | | | | | | | | | | | September 30, 2014 | | | FICO | LTV | | 720 or less | | 721 - 740 | | 741 - 760 | | 761 or greater | | Total | 60% or less | | $ | 61,427 |
| | $ | 77,822 |
| | $ | 116,019 |
| | $ | 547,606 |
| | $ | 802,874 |
| 60% - 70% | | 52,349 |
| | 53,697 |
| | 94,815 |
| | 384,192 |
| | 585,053 |
| 70% - 80% | | 28,796 |
| | 88,755 |
| | 159,487 |
| | 604,678 |
| | 881,716 |
| More than 80% | | 27,454 |
| | 4,357 |
| | 3,606 |
| | 11,934 |
| | 47,351 |
| | | $ | 170,026 |
| | $ | 224,631 |
| | $ | 373,927 |
| | $ | 1,548,410 |
| | $ | 2,316,994 |
|
| | | | | | | | | | | | | | | | | | | | | | | | December 31, 2013 | | | FICO | LTV | | 720 or less | | 721 - 740 | | 741 - 760 | | 761 or greater | | Total | 60% or less | | $ | 37,293 |
| | $ | 60,626 |
| | $ | 86,920 |
| | $ | 473,250 |
| | $ | 658,089 |
| 60% - 70% | | 25,861 |
| | 45,485 |
| | 77,253 |
| | 308,242 |
| | 456,841 |
| 70% - 80% | | 19,610 |
| | 60,021 |
| | 116,332 |
| | 472,279 |
| | 668,242 |
| More than 80% | | 26,492 |
| | 5,487 |
| | 3,166 |
| | 9,463 |
| | 44,608 |
| | | $ | 109,256 |
| | $ | 171,619 |
| | $ | 283,671 |
| | $ | 1,263,234 |
| | $ | 1,827,780 |
|
Commercial credit exposure, based on internal risk rating:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2014 | | | | Commercial Real Estate | | | | | | | | | | Multi-Family | | Owner Occupied | | Non-Owner Occupied | | Construction and Land | | Commercial and Industrial | | Lease Financing | | Total | New loans: | |
| | |
| | | | |
| | |
| | |
| | |
| Pass | $ | 1,507,055 |
| | $ | 949,883 |
| | $ | 1,450,219 |
| | $ | 136,802 |
| | $ | 2,991,984 |
| | $ | 441,431 |
| | $ | 7,477,374 |
| Special mention | — |
| | 2,138 |
| | — |
| | — |
| | 25,018 |
| | — |
| | 27,156 |
| Substandard | 410 |
| | 6,513 |
| | 1,355 |
| | 218 |
| | 26,835 |
| | 574 |
| | 35,905 |
| Doubtful | — |
| | — |
| | — |
| | — |
| | 7,500 |
| | 439 |
| | 7,939 |
| | $ | 1,507,465 |
| | $ | 958,534 |
| | $ | 1,451,574 |
| | $ | 137,020 |
| | $ | 3,051,337 |
| | $ | 442,444 |
| | $ | 7,548,374 |
| ACI loans: | | | | | | | | | | | | | | Pass | $ | 22,640 |
| | $ | 37,008 |
| | $ | 31,578 |
| | $ | 1,994 |
| | $ | 1,264 |
| | $ | — |
| | $ | 94,484 |
| Substandard | 2,219 |
| | — |
| | 796 |
| | — |
| | 65 |
| | — |
| | 3,080 |
| | $ | 24,859 |
| | $ | 37,008 |
| | $ | 32,374 |
| | $ | 1,994 |
| | $ | 1,329 |
| | $ | — |
| | $ | 97,564 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2013 | | | | Commercial Real Estate | | | | | | | | | | Multi-Family | | Owner Occupied | | Non-Owner Occupied | | Construction and Land | | Commercial and Industrial | | Lease Financing | | Total | New loans: | |
| | |
| | | | |
| | |
| | |
| | |
| Pass | $ | 1,098,383 |
| | $ | 704,403 |
| | $ | 946,208 |
| | $ | 137,513 |
| | $ | 2,236,331 |
| | $ | 338,992 |
| | $ | 5,461,830 |
| Special mention | — |
| | — |
| | — |
| | — |
| | 7,892 |
| | — |
| | 7,892 |
| Substandard | 770 |
| | 7,080 |
| | 1,444 |
| | 244 |
| | 15,906 |
| | 599 |
| | 26,043 |
| Doubtful | — |
| | 51 |
| | — |
| | — |
| | 8,918 |
| | 771 |
| | 9,740 |
| | $ | 1,099,153 |
| | $ | 711,534 |
|
| $ | 947,652 |
|
| $ | 137,757 |
|
| $ | 2,269,047 |
|
| $ | 340,362 |
|
| $ | 5,505,505 |
| Non-ACI loans: | |
| | |
| | | | |
| | |
| | |
| | |
| Pass | $ | — |
| | $ | 687 |
| | $ | — |
| | $ | 688 |
| | $ | 3,177 |
| | $ | — |
| | $ | 4,552 |
| Substandard | — |
| | — |
| | 52 |
| | — |
| | 2,379 |
| | — |
| | 2,431 |
| Doubtful | — |
| | — |
| | — |
| | — |
| | 420 |
| | — |
| | 420 |
| | $ | — |
| | $ | 687 |
| | $ | 52 |
| | $ | 688 |
| | $ | 5,976 |
| | $ | — |
| | $ | 7,403 |
| ACI loans: | | | | | | | | | | | | | | Pass | $ | 31,002 |
| | $ | 40,725 |
| | $ | 53,238 |
| | $ | 7,373 |
| | $ | 1,824 |
| | $ | — |
| | $ | 134,162 |
| Special mention | — |
| | 1,000 |
| | 3,361 |
| | — |
| | — |
| | — |
| | 4,361 |
| Substandard | 10,445 |
| | 13,454 |
| | 37,845 |
| | 3,227 |
| | 4,206 |
| | — |
| | 69,177 |
| Doubtful | — |
| | — |
| | 94 |
| | — |
| | 20 |
| | — |
| | 114 |
| | $ | 41,447 |
| | $ | 55,179 |
| | $ | 94,538 |
| | $ | 10,600 |
| | $ | 6,050 |
| | $ | — |
| | $ | 207,814 |
|
Aging of loans:
The following table presents an aging of loans at the dates indicated. Amounts are net of premiums, discounts and deferred fees and costs (in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2014 | | December 31, 2013 | | Current | | 30 - 59 Days Past Due | | 60 - 89 Days Past Due | | 90 Days or More Past Due or in Foreclosure | | Total | | Current | | 30 - 59 Days Past Due | | 60 - 89 Days Past Due | | 90 Days or More Past Due or in Foreclosure | | Total | New loans: | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| 1-4 single family residential | $ | 2,311,356 |
| | $ | 5,588 |
| | $ | — |
| | $ | 50 |
| | $ | 2,316,994 |
| | $ | 1,824,084 |
| | $ | 2,990 |
| | $ | 109 |
| | $ | 597 |
| | $ | 1,827,780 |
| Home equity loans and lines of credit | 1,680 |
| | — |
| | — |
| | — |
| | 1,680 |
| | 1,535 |
| | — |
| | — |
| | — |
| | 1,535 |
| Multi-family | 1,507,465 |
| | — |
| | — |
| | — |
| | 1,507,465 |
| | 1,099,153 |
| | — |
| | — |
| | — |
| | 1,099,153 |
| Commercial real estate | | | | | | | | | | |
|
| | | | | | | |
|
| Owner occupied | 958,534 |
| | — |
| | — |
| | — |
| | 958,534 |
| | 710,938 |
| | — |
| | — |
| | 596 |
| | 711,534 |
| Non-owner occupied | 1,451,574 |
| | — |
| | — |
| | — |
| | 1,451,574 |
| | 947,652 |
| | — |
| | — |
| | — |
| | 947,652 |
| Construction and land | 137,020 |
| | — |
| | — |
| | — |
| | 137,020 |
| | 137,757 |
| | — |
| | — |
| | — |
| | 137,757 |
| Commercial and industrial | 3,044,640 |
| | 238 |
| | 1,150 |
| | 5,309 |
| | 3,051,337 |
| | 2,260,628 |
| | 610 |
| | 165 |
| | 7,644 |
| | 2,269,047 |
| Lease financing | 442,444 |
| | — |
| | — |
| | — |
| | 442,444 |
| | 340,337 |
| | — |
| | 25 |
| | — |
| | 340,362 |
| Consumer | 21,040 |
| | 146 |
| | — |
| | — |
| | 21,186 |
| | 219,083 |
| | 766 |
| | 161 |
| | 31 |
| | 220,041 |
| | $ | 9,875,753 |
| | $ | 5,972 |
| | $ | 1,150 |
| | $ | 5,359 |
| | $ | 9,888,234 |
| | $ | 7,541,167 |
| | $ | 4,366 |
| | $ | 460 |
| | $ | 8,868 |
| | $ | 7,554,861 |
| Non-ACI loans: | | | | | | | | | | | |
| | |
| | |
| | |
| | |
| 1-4 single family residential | $ | 50,090 |
| | $ | 210 |
| | $ | 372 |
| | $ | — |
| | $ | 50,672 |
| | $ | 56,248 |
| | $ | 3,129 |
| | $ | 293 |
| | $ | — |
| | $ | 59,670 |
| Home equity loans and lines of credit | 101,270 |
| | 1,941 |
| | 446 |
| | 3,825 |
| | 107,482 |
| | 116,036 |
| | 2,417 |
| | 556 |
| | 6,559 |
| | 125,568 |
| Commercial real estate | | | | | | | | | | | | | | | | | | | | Owner occupied | — |
| | — |
| | — |
| | — |
| | — |
| | 687 |
| | — |
| | — |
| | — |
| | 687 |
| Non-owner occupied | — |
| | — |
| | — |
| | — |
| | — |
| | 52 |
| | — |
| | — |
| | — |
| | 52 |
| Construction and land | — |
| | — |
| | — |
| | — |
| | — |
| | 688 |
| | — |
| | — |
| | — |
| | 688 |
| Commercial and industrial | — |
| | — |
| | — |
| | — |
| | — |
| | 3,722 |
| | — |
| | 4 |
| | 2,250 |
| | 5,976 |
| | $ | 151,360 |
| | $ | 2,151 |
| | $ | 818 |
| | $ | 3,825 |
| | $ | 158,154 |
| | $ | 177,433 |
| | $ | 5,546 |
| | $ | 853 |
| | $ | 8,809 |
| | $ | 192,641 |
| ACI loans: | | | | | | | | | | | | | | | | | | | | 1-4 single family residential | $ | 862,654 |
| | $ | 21,391 |
| | $ | 5,281 |
| | $ | 25,863 |
| | $ | 915,189 |
| | $ | 957,791 |
| | $ | 33,067 |
| | $ | 10,279 |
| | $ | 55,875 |
| | $ | 1,057,012 |
| Home equity loans and lines of credit | 24,194 |
| | 509 |
| | 190 |
| | 1,691 |
| | 26,584 |
| | 33,967 |
| | 1,150 |
| | 329 |
| | 4,156 |
| | 39,602 |
| Multi-family | 24,859 |
| | — |
| | — |
| | — |
| | 24,859 |
| | 38,877 |
| | — |
| | — |
| | 2,570 |
| | 41,447 |
| Commercial real estate | | | | | | | | | | | | | | | | | | |
|
| Owner occupied | 34,707 |
| | 2,301 |
| | — |
| | — |
| | 37,008 |
| | 54,501 |
| | 253 |
| | — |
| | 425 |
| | 55,179 |
| Non-owner occupied | 32,374 |
| | — |
| | — |
| | — |
| | 32,374 |
| | 81,754 |
| | 3,245 |
| | — |
| | 9,539 |
| | 94,538 |
| Construction and land | 1,994 |
| | — |
| | — |
| | — |
| | 1,994 |
| | 7,373 |
| | — |
| | — |
| | 3,227 |
| | 10,600 |
| Commercial and industrial | 1,281 |
| | 44 |
| | 4 |
| | — |
| | 1,329 |
| | 3,193 |
| | — |
| | — |
| | 2,857 |
| | 6,050 |
| Consumer | 51 |
| | — |
| | — |
| | — |
| | 51 |
| | 1,477 |
| | — |
| | 201 |
| | 1 |
| | 1,679 |
| | $ | 982,114 |
| | $ | 24,245 |
|
| $ | 5,475 |
| | $ | 27,554 |
| | $ | 1,039,388 |
| | $ | 1,178,933 |
| | $ | 37,715 |
| | $ | 10,809 |
| | $ | 78,650 |
| | $ | 1,306,107 |
|
1-4 single family residential and home equity ACI loans that are contractually delinquent by more than 90 days and accounted for in pools that are on accrual status because discount continues to be accreted totaled $28 million and $60 million at September 30, 2014 and December 31, 2013, respectively. The recorded investment in commercial and commercial real estate ACI loans that were contractually delinquent in excess of ninety days but still classified as accruing loans due to discount accretion totaled $18 million at December 31, 2013.
Troubled debt restructurings:
The following tables summarize loans that were modified in TDRs during the periods indicated, as well as loans modified during the twelve months preceding September 30, 2014 and 2013, that experienced payment defaults during the periods indicated (dollars in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | 2014 | | 2013 | | Loans Modified in TDRs During the Period | | TDRs Experiencing Payment Defaults During the Period | | Loans Modified in TDRs
During the Period | | TDRs Experiencing Payment
Defaults During the Period | | Number of TDRs | | Recorded Investment | | Number of TDRs | | Recorded Investment | | Number of TDRs | | Recorded Investment | | Number of TDRs | | Recorded Investment | New loans: | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Commercial and industrial | 1 |
| | 913 |
| | — |
| | — |
| | 1 |
| | 1,871 |
| | — |
| | — |
| | 1 |
| | $ | 913 |
| | — |
| | $ | — |
| | 1 |
| | $ | 1,871 |
| | — |
| | $ | — |
| Non-ACI loans: | | | | | | | | | |
| | |
| | |
| | |
| 1-4 single family residential | 1 |
| | 164 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 1 |
| | $ | 164 |
| | — |
| | $ | — |
| | — |
| | $ | — |
| | — |
| | $ | — |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Nine Months Ended September 30, | | 2014 | | 2013 | | Loans Modified in TDRs
During the Period | | TDRs Experiencing Payment
Defaults During the Period | | Loans Modified in TDRs
During the Period | | TDRs Experiencing Payment
Defaults During the Period | | Number of
TDRs | | Recorded
Investment | | Number of
TDRs | | Recorded
Investment | | Number of
TDRs | | Recorded
Investment | | Number of
TDRs | | Recorded
Investment | New loans: | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Commercial real estate | 1 |
| | $ | 318 |
| | — |
| | $ | — |
| | — |
| | $ | — |
| | — |
| | $ | — |
| Commercial and industrial | 1 |
| | 913 |
| | — |
| | — |
| | 2 |
| | 2,364 |
| | — |
| | — |
| | 2 |
| | $ | 1,231 |
| | — |
| | $ | — |
| | 2 |
| | $ | 2,364 |
| | — |
| | $ | — |
| Non-ACI loans: | | | | | | | | | |
| | |
| | |
| | |
| 1-4 single family residential | 1 |
| | $ | 164 |
| | — |
| | $ | — |
| | 2 |
| | $ | 334 |
| | 1 |
| | $ | 166 |
| Home equity loans and lines of credit | 2 |
| | 402 |
| | 1 |
| | 164 |
| | 3 |
| | 1,119 |
| | — |
| | — |
| | 3 |
| | $ | 566 |
| | 1 |
| | $ | 164 |
| | 5 |
| | $ | 1,453 |
| | 1 |
| | $ | 166 |
| ACI loans: | | | | | | | | | | | | | | | | Commercial real estate | — |
| | $ | — |
| | — |
| | $ | — |
| | 3 |
| | $ | 1,313 |
| | — |
| | $ | — |
| Commercial and industrial | — |
| | — |
| | — |
| | — |
| | 1 |
| | 168 |
| | — |
| | — |
| | — |
| | $ | — |
| | — |
| | $ | — |
| | 4 |
| | $ | 1,481 |
| | — |
| | $ | — |
|
Modifications during the three and nine month periods ended September 30, 2014 and 2013 included restructuring of the amount and timing of required periodic payments, extensions of maturity and residential modifications under the U.S. Treasury Department’s Home Affordable Modification Program (“HAMP”). Included in TDRs are residential loans to borrowers who have not reaffirmed their debt discharged in Chapter 7 bankruptcy. The total amount of such loans is not material. Modified ACI loans accounted for in pools are not considered TDRs, are not separated from the pools and are not classified as impaired loans. Because of the immateriality of the amount of loans modified in TDRs and nature of the modifications, the modifications did not have a material impact on the Company’s consolidated financial statements or on the determination of the amount of the ALLL at September 30, 2014 and 2013. |