Loans and Allowance for Loan and Lease Losses (Tables)

9 Months Ended

Sep. 30, 2018

Financing Receivable, Impaired [Line Items]

Loans consisted of the following at the dates indicated (dollars in thousands):



	September 30, 2018
				Covered Loans								Percent of Total
	Non-Covered Loans			ACI		Non-ACI			Total			Percent of Total
Residential and other consumer:
1-4 single family residential	$	4,322,915		$	344,078	$	18,779		$	4,685,772		21.4	%
Government insured residential	163,241			—		—			163,241			0.7	%
Home equity loans and lines of credit	1,715			—		—			1,715			—	%
Other consumer loans	16,796			—		—			16,796			0.1	%
	4,504,667			344,078		18,779			4,867,524			22.2	%
Commercial:
Multi-family	2,760,856			—		—			2,760,856			12.6	%
Non-owner occupied commercial real estate	4,579,278			—		—			4,579,278			21.0	%
Construction and land	245,077			—		—			245,077			1.1	%
Owner occupied commercial real estate	2,094,371			—		—			2,094,371			9.6	%
Commercial and industrial	4,720,532			—		—			4,720,532			21.6	%
Commercial lending subsidiaries	2,611,920			—		—			2,611,920			11.9	%
	17,012,034			—		—			17,012,034			77.8	%
Total loans	21,516,701			344,078		18,779			21,879,558			100.0	%
Premiums, discounts and deferred fees and costs, net	42,703			—		(3,090		)	39,613
Loans including premiums, discounts and deferred fees and costs	21,559,404			344,078		15,689			21,919,171
Allowance for loan and lease losses	(124,726		)	—		(14		)	(124,740		)
Loans, net	$	21,434,678		$	344,078	$	15,675		$	21,794,431



	December 31, 2017
				Covered Loans								Percent of Total
	Non-Covered Loans			ACI		Non-ACI			Total			Percent of Total
Residential and other consumer:
1-4 single family residential	$	4,089,994		$	479,068	$	27,198		$	4,596,260		21.5	%
Government insured residential	26,820			—		—			26,820			0.1	%
Home equity loans and lines of credit	1,654			—		—			1,654			—	%
Other consumer loans	20,512			—		—			20,512			0.1	%
	4,138,980			479,068		27,198			4,645,246			21.7	%
Commercial:
Multi-family	3,215,697			—		—			3,215,697			15.0	%
Non-owner occupied commercial real estate	4,485,276			—		—			4,485,276			21.0	%
Construction and land	310,999			—		—			310,999			1.5	%
Owner occupied commercial real estate	2,014,908			—		—			2,014,908			9.4	%
Commercial and industrial	4,145,785			—		—			4,145,785			19.4	%
Commercial lending subsidiaries	2,553,576			—		—			2,553,576			12.0	%
	16,726,241			—		—			16,726,241			78.3	%
Total loans	20,865,221			479,068		27,198			21,371,487			100.0	%
Premiums, discounts and deferred fees and costs, net	48,165			—		(3,148		)	45,017
Loans including premiums, discounts and deferred fees and costs	20,913,386			479,068		24,050			21,416,504
Allowance for loan and lease losses	(144,537		)	—		(258		)	(144,795		)
Loans, net	$	20,768,849		$	479,068	$	23,792		$	21,271,709

Accretable Yield Rollfoward [Table Text Block]

hanges in the accretable yield on ACI loans for the nine months ended September 30, 2018 and the year ended December 31, 2017 were as follows (in thousands):



Balance at December 31, 2016	$	675,385
Reclassifications from non-accretable difference, net	81,501
Accretion	(301,827		)
Balance at December 31, 2017	455,059
Reclassifications from non-accretable difference, net	78,561
Accretion	(249,609		)
Balance at September 30, 2018	$	284,011

Covered Loan Sales - Residential [Table Text Block]

During the periods indicated, the Company sold covered 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,
	2018		2018		2017
UPB of loans sold	$	154,415	$	279,764	$	123,737

Cash proceeds, net of transaction costs	$	129,144	$	238,773	$	98,404
Recorded investment in loans sold	124,107		234,034		99,986
Gain (loss) on sale of covered loans, net	$	5,037	$	4,739	$	(1,582	)

Gain on FDIC indemnification, net	$	5,449	$	5,692	$	1,266

Allowance for Credit Losses on Financing Receivables

Activity in the ALLL is summarized as follows for the periods indicated (in thousands):



	Three Months Ended September 30,
	2018									2017
	Residential and Other Consumer			Commercial			Total			Residential and Other Consumer		Commercial			Unallocated		Total
Beginning balance	$	10,338		$	124,633		$	134,971		$	13,550	$	142,098		$	—	$	155,648
Provision for (recovery of) loan losses:
Covered loans	(50		)	—			(50		)	268		(7		)	—		261
Non-covered loans	290			960			1,250			363		32,230			5,000		37,593
Total provision	240			960			1,200			631		32,223			5,000		37,854
Charge-offs:				.
Covered loans	(740		)	—			(740		)	—		—			—		—
Non-covered loans	—			(12,340		)	(12,340		)	—		(36,028		)	—		(36,028		)
Total charge-offs	(740		)	(12,340		)	(13,080		)	—		(36,028		)	—		(36,028		)
Recoveries:
Covered loans	214			—			214			31		7			—		38
Non-covered loans	251			1,184			1,435			8		1,053			—		1,061
Total recoveries	465			1,184			1,649			39		1,060			—		1,099
Ending balance	$	10,303		$	114,437		$	124,740		$	14,220	$	139,353		$	5,000	$	158,573



	Nine Months Ended September 30,
	2018									2017
	Residential and Other Consumer			Commercial			Total			Residential and Other Consumer			Commercial			Unallocated		Total
Beginning balance	$	10,720		$	134,075		$	144,795		$	11,503		$	141,450		$	—	$	152,953
Provision for (recovery of) loan losses:
Covered loans	517			—			517			2,738			(45		)	—		2,693
Non-covered loans	(183		)	13,008			12,825			(52		)	55,932			5,000		60,880
Total provision	334			13,008			13,342			2,686			55,887			5,000		63,573
Charge-offs:
Covered loans	(979		)	—			(979		)	(55		)	—			—		(55		)
Non-covered loans	(265		)	(34,736		)	(35,001		)	—			(61,034		)	—		(61,034		)
Total charge-offs	(1,244		)	(34,736		)	(35,980		)	(55		)	(61,034		)	—		(61,089		)
Recoveries:
Covered loans	218			—			218			65			45			—		110
Non-covered loans	275			2,090			2,365			21			3,005			—		3,026
Total recoveries	493			2,090			2,583			86			3,050			—		3,136
Ending balance	$	10,303		$	114,437		$	124,740		$	14,220		$	139,353		$	5,000	$	158,573

The following table presents information about the balance of the ALLL and related loans at the dates indicated (in thousands):



	September 30, 2018						December 31, 2017
	Residential and Other Consumer		Commercial		Total		Residential and Other Consumer		Commercial		Total
Allowance for loan and lease losses:
Ending balance	$	10,303	$	114,437	$	124,740	$	10,720	$	134,075	$	144,795
Covered loans:
Ending balance	$	14	$	—	$	14	$	258	$	—	$	258
Ending balance: non-ACI loans individually evaluated for impairment	$	14	$	—	$	14	$	118	$	—	$	118
Ending balance: non-ACI loans collectively evaluated for impairment	$	—	$	—	$	—	$	140	$	—	$	140
Non-covered loans:
Ending balance	$	10,289	$	114,437	$	124,726	$	10,462	$	134,075	$	144,537
Ending balance: loans individually evaluated for impairment	$	143	$	23,050	$	23,193	$	63	$	18,776	$	18,839
Ending balance: loans collectively evaluated for impairment	$	10,146	$	91,387	$	101,533	$	10,399	$	115,299	$	125,698
Loans:
Covered loans:
Ending balance	$	359,767	$	—	$	359,767	$	503,118	$	—	$	503,118
Ending balance: non-ACI loans individually evaluated for impairment	$	956	$	—	$	956	$	2,221	$	—	$	2,221
Ending balance: non-ACI loans collectively evaluated for impairment	$	14,733	$	—	$	14,733	$	21,829	$	—	$	21,829
Ending balance: ACI loans	$	344,078	$	—	$	344,078	$	479,068	$	—	$	479,068
Non-covered loans:
Ending balance	$	4,563,578	$	16,995,826	$	21,559,404	$	4,196,080	$	16,717,306	$	20,913,386
Ending balance: loans, other than ACI loans, individually evaluated for impairment	$	6,218	$	191,340	$	197,558	$	1,234	$	173,706	$	174,940
Ending balance: loans, other than ACI loans, collectively evaluated for impairment	$	4,557,360	$	16,777,108	$	21,334,468	$	4,194,846	$	16,509,824	$	20,704,670
Ending balance: ACI loans	$	—	$	27,378	$	27,378	$	—	$	33,776	$	33,776

Impaired Financing Receivables

The table below presents information about loans or ACI pools identified as impaired at the dates indicated (in thousands):



	September 30, 2018						December 31, 2017
	Recorded Investment		UPB		Related Specific Allowance		Recorded Investment		UPB		Related Specific Allowance
Non-covered loans:
With no specific allowance recorded:
1-4 single family residential ⁽¹⁾	$	4,241	$	4,138	$	—	$	120	$	122	$	—
Multi-family	6,549		6,580		—		—		—		—
Non-owner occupied commercial real estate	14,049		13,965		—		10,922		10,838		—
Construction and land	10,166		10,169		—		1,175		1,175		—
Owner occupied commercial real estate	9,860		9,858		—		22,002		22,025		—
Commercial and industrial
Taxi medallion loans	10,586		10,585		—		13,560		13,559		—
Other commercial and industrial	16,786		16,795		—		345		374		—
Commercial lending subsidiaries	1,923		1,920		—		—		—		—
With a specific allowance recorded:
1-4 single family residential ⁽¹⁾	1,977		1,952		143		1,114		1,090		63
Multi-family	19,280		19,281		3,144		23,173		23,175		1,732
Owner occupied commercial real estate	2,768		2,768		5		3,075		3,079		2,960
Non-owner occupied commercial real estate	1,689		1,690		240		—		—		—
Commercial and industrial
Taxi medallion loans	69,569		69,570		10,957		92,507		92,508		12,214
Other commercial and industrial	6,996		6,998		1,705		3,626		3,624		1,540
Commercial lending subsidiaries	21,119		21,029		6,999		3,321		3,296		330
Total:
Residential and other consumer	$	6,218	$	6,090	$	143	$	1,234	$	1,212	$	63
Commercial	191,340		191,208		23,050		173,706		173,653		18,776
	$	197,558	$	197,298	$	23,193	$	174,940	$	174,865	$	18,839
Covered loans:
Non-ACI loans:
With no specific allowance recorded:
1-4 single family residential	$	—	$	—	$	—	$	1,061	$	1,203	$	—
With a specific allowance recorded:
1-4 single family residential	956		1,145		14		1,160		1,314		118
	$	956	$	1,145	$	14	$	2,221	$	2,517	$	118


(1)	Includes government insured residential loans at September 30, 2018 and December 31, 2017.

Interest income recognized on impaired loans and pools was insignificant for the three and nine months ended September 30, 2018 and approximately $2.9 million and $8.3 million for the three and nine months ended September 30, 2017.

The following table presents the average recorded investment in impaired loans for the periods indicated (in thousands):



	Three Months Ended September 30,
	2018				2017
	Non-Covered Loans		Covered Non-ACI Loans		Non-Covered Loans		Covered Non-ACI Loans
Residential and other consumer:
1-4 single family residential	$	5,745	$	1,906	$	962	$	2,304
Home equity loans and lines of credit	—		—		—		9,533
	5,745		$	1,906	962		$	11,837
Commercial:
Multi-family	26,041				1,359
Non-owner occupied commercial real estate	14,577				8,216
Construction and land	7,766				2,797
Owner occupied commercial real estate	14,004				20,579
Commercial and industrial
Taxi medallion loans	83,683				123,867
Other commercial and industrial	22,179				42,479
Commercial lending subsidiaries	12,562				21,398
	180,812				220,695
	$	186,557			$	221,657



	Nine Months Ended September 30,
	2018				2017
	Non-Covered Loans		Covered Non-ACI Loans		Non-Covered Loans		Covered Non-ACI Loans
Residential and other consumer:
1-4 single family residential	$	4,228	$	2,164	$	800	$	2,369
Home equity loans and lines of credit	—		—		—		9,638
	4,228		$	2,164	800		$	12,007
Commercial:
Multi-family	25,674				1,816
Non-owner occupied commercial real estate	13,858				4,056
Construction and land	5,386				3,317
Owner occupied commercial real estate	17,451				18,872
Commercial and industrial
Taxi medallion loans	92,893				107,529
Other commercial and industrial	15,559				43,308
Commercial lending subsidiaries	5,398				27,202
	176,219				206,100
	$	180,447			$	206,900

In addition to the above, a pool of ACI home equity loans and lines of credit was impaired during the three and nine months ended September 30, 2017. All of the loans from this pool were sold in the fourth quarter of 2017. The average balance of impaired ACI home equity loans and lines of credit for the three and nine months ended September 30, 2017 was $5.2 million and $4.2 million, respectively.

Activity in the ALLL is summarized as follows for the periods indicated (in thousands):



	Three Months Ended September 30,
	2018									2017
	Residential and Other Consumer			Commercial			Total			Residential and Other Consumer		Commercial			Unallocated		Total
Beginning balance	$	10,338		$	124,633		$	134,971		$	13,550	$	142,098		$	—	$	155,648
Provision for (recovery of) loan losses:
Covered loans	(50		)	—			(50		)	268		(7		)	—		261
Non-covered loans	290			960			1,250			363		32,230			5,000		37,593
Total provision	240			960			1,200			631		32,223			5,000		37,854
Charge-offs:				.
Covered loans	(740		)	—			(740		)	—		—			—		—
Non-covered loans	—			(12,340		)	(12,340		)	—		(36,028		)	—		(36,028		)
Total charge-offs	(740		)	(12,340		)	(13,080		)	—		(36,028		)	—		(36,028		)
Recoveries:
Covered loans	214			—			214			31		7			—		38
Non-covered loans	251			1,184			1,435			8		1,053			—		1,061
Total recoveries	465			1,184			1,649			39		1,060			—		1,099
Ending balance	$	10,303		$	114,437		$	124,740		$	14,220	$	139,353		$	5,000	$	158,573



	Nine Months Ended September 30,
	2018									2017
	Residential and Other Consumer			Commercial			Total			Residential and Other Consumer			Commercial			Unallocated		Total
Beginning balance	$	10,720		$	134,075		$	144,795		$	11,503		$	141,450		$	—	$	152,953
Provision for (recovery of) loan losses:
Covered loans	517			—			517			2,738			(45		)	—		2,693
Non-covered loans	(183		)	13,008			12,825			(52		)	55,932			5,000		60,880
Total provision	334			13,008			13,342			2,686			55,887			5,000		63,573
Charge-offs:
Covered loans	(979		)	—			(979		)	(55		)	—			—		(55		)
Non-covered loans	(265		)	(34,736		)	(35,001		)	—			(61,034		)	—		(61,034		)
Total charge-offs	(1,244		)	(34,736		)	(35,980		)	(55		)	(61,034		)	—		(61,089		)
Recoveries:
Covered loans	218			—			218			65			45			—		110
Non-covered loans	275			2,090			2,365			21			3,005			—		3,026
Total recoveries	493			2,090			2,583			86			3,050			—		3,136
Ending balance	$	10,303		$	114,437		$	124,740		$	14,220		$	139,353		$	5,000	$	158,573

Schedule of Recorded Investment in Loans, Other than ACI Loans, on Non-Accrual Status

The following table presents the recorded investment in loans on non-accrual status as of dates indicated (in thousands):



	September 30, 2018				December 31, 2017
	Non-Covered Loans		Covered Non-ACI Loans		Non-Covered Loans		Covered Non-ACI Loans
Residential and other consumer:
1-4 single family residential	$	8,021	$	167	$	9,705	$	1,341
Other consumer loans	1,956		—		821		—
	9,977		$	167	10,526		$	1,341
Commercial:
Multi-family	25,829				—
Non-owner occupied commercial real estate	15,364				12,716
Construction and land	10,166				1,175
Owner occupied commercial real estate	17,513				29,020
Commercial and industrial
Taxi medallion loans	80,155				106,067
Other commercial and industrial	24,036				7,049
Commercial lending subsidiaries	22,438				3,512
	195,501				159,539
	$	205,478			$	170,065

Financing Receivable Credit Quality Indicators

The following tables summarize key indicators of credit quality for the Company's loans at the dates indicated. Amounts include premiums, discounts and deferred fees and costs (in thousands):

1-4 Single Family Residential credit exposure for non-covered loans, excluding government insured residential loans, based on original LTV and FICO score:



	September 30, 2018
	FICO
LTV	720 or less		721 - 740		741 - 760		761 or greater		Total
60% or less	$	103,798	$	122,757	$	200,142	$	810,505	$	1,237,202
60% - 70%	114,254		108,560		171,213		601,041		995,068
70% - 80%	155,595		197,569		360,631		1,221,788		1,935,583
More than 80%	16,428		34,166		33,830		128,448		212,872
	$	390,075	$	463,052	$	765,816	$	2,761,782	$	4,380,725



	December 31, 2017
	FICO
LTV	720 or less		721 - 740		741 - 760		761 or greater		Total
60% or less	$	91,965	$	117,318	$	185,096	$	815,792	$	1,210,171
60% - 70%	100,866		103,387		147,541		590,493		942,287
70% - 80%	149,209		183,064		324,884		1,139,902		1,797,059
More than 80%	16,116		30,408		28,149		121,689		196,362
	$	358,156	$	434,177	$	685,670	$	2,667,876	$	4,145,879

Commercial credit exposure, based on internal risk rating:



	September 30, 2018
									Commercial and Industrial				Commercial Lending Subsidiaries
	Multi-Family		Non-Owner Occupied Commercial Real Estate		Construction and Land		Owner Occupied Commercial Real Estate		Taxi Medallion Loans		Other Commercial and Industrial		Pinnacle		Bridge		Total
Pass	$	2,690,193	$	4,499,176	$	234,453	$	2,048,491	$	—	$	4,528,964	$	1,482,125	$	1,094,950	$	16,578,352
Special mention	6,459		3,288		—		8,774		—		43,732		—		1,144		63,397
Substandard	66,346		65,125		10,166		34,713		80,155		54,198		—		34,715		345,418
Doubtful	—		—		—		—		—		1,496		—		7,163		8,659
	$	2,762,998	$	4,567,589	$	244,619	$	2,091,978	$	80,155	$	4,628,390	$	1,482,125	$	1,137,972	$	16,995,826



	December 31, 2017
									Commercial and Industrial				Commercial Lending Subsidiaries
	Multi-Family		Non-Owner Occupied Commercial Real Estate		Construction and Land		Owner Occupied Commercial Real Estate		Taxi Medallion Loans		Other Commercial and Industrial		Pinnacle		Bridge		Total
Pass	$	3,124,819	$	4,360,827	$	305,043	$	1,954,464	$	—	$	3,965,241	$	1,524,622	$	954,376	$	16,189,392
Special mention	34,837		33,094		—		22,161		—		37,591		—		55,551		183,234
Substandard	59,297		80,880		5,441		33,145		104,682		27,010		—		27,950		338,405
Doubtful	—		—		—		2,972		1,385		1,918		—		—		6,275
	$	3,218,953	$	4,474,801	$	310,484	$	2,012,742	$	106,067	$	4,031,760	$	1,524,622	$	1,037,877	$	16,717,306

Schedule of Past Due Financing Receivables

The following table presents an aging of loans at the dates indicated. Amounts include premiums, discounts and deferred fees and costs (in thousands):



	September 30, 2018										December 31, 2017
	Current		30 - 59 Days Past Due		60 - 89 Days Past Due		90 Days or More Past Due		Total		Current		30 - 59 Days Past Due		60 - 89 Days Past Due		90 Days or More Past Due		Total
Non-covered loans:
1-4 single family residential	$	4,365,863	$	6,842	$	3,102	$	4,918	$	4,380,725	$	4,121,624	$	15,613	$	4,941	$	3,701	$	4,145,879
Government insured residential	24,804		3,606		7,141		128,823		164,374		23,455		1,611		1,153		1,855		28,074
Home equity loans and lines of credit	1,694		21		—		—		1,715		1,633		21		—		—		1,654
Other consumer loans	13,071		2,035		—		1,658		16,764		19,958		15		—		500		20,473
Multi-family	2,762,998		—		—		—		2,762,998		3,218,953		—		—		—		3,218,953
Non-owner occupied commercial real estate	4,561,612		—		1,080		4,897		4,567,589		4,464,967		7,549		—		2,285		4,474,801
Construction and land	238,573		—		4,950		1,096		244,619		309,309		—		—		1,175		310,484
Owner occupied commercial real estate	2,078,599		1,527		1,271		10,581		2,091,978		2,004,397		1,292		499		6,554		2,012,742
Commercial and industrial
Taxi medallion loans	63,236		263		3,294		13,362		80,155		88,394		6,048		3,333		8,292		106,067
Other commercial and industrial	4,609,194		269		16,336		2,591		4,628,390		4,025,784		4,291		291		1,394		4,031,760
Commercial lending subsidiaries
Pinnacle	1,482,125		—		—		—		1,482,125		1,524,622		—		—		—		1,524,622
Bridge	1,136,744		—		—		1,228		1,137,972		1,037,025		852		—		—		1,037,877
	$	21,338,513	$	14,563	$	37,174	$	169,154	$	21,559,404	$	20,840,121	$	37,292	$	10,217	$	25,756	$	20,913,386
Covered loans:
Non-ACI loans:
1-4 single family residential	$	15,442	$	80	$	67	$	100	$	15,689	$	21,106	$	1,603	$	—	$	1,341	$	24,050
ACI loans:
1-4 single family residential	$	339,176	$	4,256	$	410	$	236	$	344,078	$	448,125	$	10,388	$	2,719	$	17,836	$	479,068

Troubled Debt Restructurings on Financing Receivables [Table Text Block]

The following table summarizes loans that were modified in TDRs during the periods indicated, as well as loans modified during the twelve months preceding September 30, 2018 and 2017, that experienced payment defaults during the periods indicated (dollars in thousands):



	Three Months Ended September 30,
	2018						2017
	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
Non-covered loans:
1-4 single family residential⁽¹⁾	11	$	956	4	$	311	—	$	—	2	$	269
Non-owner occupied commercial real estate	2	3,037		—	—		—	—		—	—
Commercial and industrial
Taxi medallion loans	1	217		1	215		15	5,439		6	2,105
Other commercial and industrial	2	3,953		—	—		1	978		—	—
	16	$	8,163	5	$	526	16	$	6,417	8	$	2,374
Covered loans:
Non-ACI loans:
Home equity loans and lines of credit	—	$	—	—	$	—	—	$	—	1	$	70
	—	$	—	—	$	—	—	$	—	1	$	70



	Nine Months Ended September 30,
	2018						2017
	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
Non-covered loans:
1-4 single family residential⁽¹⁾	24	$	4,986	5	$	411	4	$	351	2	$	269
Non-owner occupied commercial real estate	2	3,037		—	—		1	5,389		—	—
Owner occupied commercial real estate	—	—		—	—		2	4,522		—	—
Commercial and industrial
Taxi medallion loans	7	1,418		1	215		97	48,692		8	3,509
Other commercial and industrial	3	4,117		—	—		14	20,860		—	—
Commercial lending subsidiaries	—	—		—	—		1	12,810		—	—
	36	$	13,558	6	$	626	119	$	92,624	10	$	3,778
Covered loans:
Non-ACI loans:
Home equity loans and lines of credit	—	$	—	—	$	—	5	$	939	1	$	70
	—	$	—	—	$	—	5	$	939	1	$	70


(1)	Includes government insured residential loans modified during the three and nine months ended September 30, 2018 and 2017.