LOANS (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Loan Portfolio Non-Covered and Covered PCI Loans and Non-PCI Loans

The detail of the loan portfolio as of December 31, 2012 and 2011 was as follows:

	December 31, 2012						December 31, 2011
	Non-PCI		PCI				Non-PCI		PCI
	Loans		Loans		Total		Loans		Loans		Total
	(in thousands)
Non-covered loans:
Commercial and industrial	$	1,832,743	$	252,083	$	2,084,826	$	1,878,387	$	—	$	1,878,387
Commercial real estate:
Commercial real estate		3,772,084		645,625		4,417,709		3,574,089		—		3,574,089
Construction		399,855		25,589		425,444		411,003		—		411,003
Total commercial real estate loans		4,171,939		671,214		4,843,153		3,985,092		—		3,985,092
Residential mortgage		2,445,627		16,802		2,462,429		2,285,590		—		2,285,590
Consumer:
Home equity		438,881		46,577		485,458		469,604		—		469,604
Automobile		786,528		—		786,528		772,490		—		772,490
Other consumer		179,417		314		179,731		136,634		—		136,634
Total consumer loans		1,404,826		46,891		1,451,717		1,378,728		—		1,378,728
Total non-covered loans		9,855,135		986,990		10,842,125		9,527,797		—		9,527,797
Covered loans:
Commercial and industrial		—		46,517		46,517		—		83,742		83,742
Commercial real estate		—		120,268		120,268		—		160,651		160,651
Construction		—		1,924		1,924		—		6,974		6,974
Residential mortgage		—		9,659		9,659		—		15,546		15,546
Consumer		—		2,306		2,306		—		4,931		4,931
Total covered loans		—		180,674		180,674		—		271,844		271,844
Total loans	$	9,855,135	$	1,167,664	$	11,022,799	$	9,527,797	$	271,844	$	9,799,641

Information Regarding Estimates of Contractually Required Payments Receivable, Cash Flows Expected to be Collected, and Estimated Fair Value of PCI Loans

The following table presents information regarding the estimates of the contractually required payments, the cash flows expected to be collected, and the estimated fair value of the PCI loans acquired in the State Bancorp acquisition as of January 1, 2012 (see Note 2) and PCI loans purchased from another financial institution as of March 28, 2012:

	January 1, 2012			March 28, 2012
	(in thousands)
Contractually required principal and interest	$	1,333,686		$	144,357
Contractual cash flows not expected to be collected (non-accretable difference)		(77,058	)		(9,111	)
Expected cash flows to be collected		1,256,628			135,246
Interest component of expected cash flows (accretable yield)		(168,207	)		(17,991	)
Fair value of acquired loans	$	1,088,421		$	117,255

Changes in Accretable Yield for Covered Loans

The following table presents changes in the accretable yield for PCI loans for the years ended December 31, 2012 and 2011:

	2012			2011
	(in thousands)
Balance, beginning of period	$	66,724		$	101,052
Acquisitions		186,198			—
Accretion		(83,613	)		(40,345	)
Net reclassification from non-accretable difference		—			6,017
Balance, end of period	$	169,309		$	66,724

Changes in FDIC Loss-Share Receivable

Changes in FDIC loss-share receivable for the years ended December 31, 2012 and 2011 were as follows:

	2012			2011
	(in thousands)
Balance, beginning of the period	$	74,390		$	89,359
Discount accretion of the present value at the acquisition dates		325			582
Effect of additional cash flows on covered loans (prospective recognition)		(7,767	)		(10,592	)
Increase due to impairment on covered loans		—			19,520
Other reimbursable expenses		5,467			3,893
Reimbursements from the FDIC		(21,935	)		(28,372	)
Other		(5,484	)		—
Balance, end of the period	$	44,996		$	74,390

Summary of Related Party Loans

The following table summarizes the changes in the total amounts of loans and advances to the related parties during the year ended December 31, 2012:

	2012
	(in thousands)
Outstanding at beginning of year	$	208,243
New loans and advances		41,483
Repayments		(17,426	)
Outstanding at end of year	$	232,300

Past Due, Non-Accrual and Current Non-Covered Loans by Loan Portfolio Class

The following tables present past due, non-accrual and current loans (excluding PCI loans, which are accounted for on a pool basis) by loan portfolio class at December 31, 2012 and 2011:

	Past Due and Non-Accrual Loans
	30-89 Days Past Due Loans		Accruing Loans 90 Days Or More Past Due		Non-Accrual Loans		Total Past Due Loans		Current Non-PCI Loans		Total Non-PCI Loans
	(in thousands)
December 31, 2012
Commercial and industrial	$	3,578	$	283	$	22,424	$	26,285	$	1,806,458	$	1,832,743
Commercial real estate:
Commercial real estate		13,245		2,950		58,625		74,820		3,697,264		3,772,084
Construction		6,685		2,575		14,805		24,065		375,790		399,855
Total commercial real estate loans		19,930		5,525		73,430		98,885		4,073,054		4,171,939
Residential mortgage		18,951		2,356		32,623		53,930		2,391,697		2,445,627
Consumer loans:
Home equity		702		—		2,398		3,100		435,781		438,881
Automobile		5,443		469		305		6,217		780,311		786,528
Other consumer		1,082		32		628		1,742		177,675		179,417
Total consumer loans		7,227		501		3,331		11,059		1,393,767		1,404,826
Total	$	49,686	$	8,665	$	131,808	$	190,159	$	9,664,976	$	9,855,135

	Past Due and Non-Accrual Loans
	30-89 Days Past Due Loans		Accruing Loans 90 Days  Or More Past Due		Non-Accrual Loans		Total Past Due Loans		Current Non-PCI Loans		Total Non-PCI Loans
	(in thousands)
December 31, 2011
Commercial and industrial	$	4,347	$	657	$	26,648	$	31,652	$	1,846,735	$	1,878,387
Commercial real estate:
Commercial real estate		13,115		422		42,186		55,723		3,518,366		3,574,089
Construction		2,652		1,823		19,874		24,349		386,654		411,003
Total commercial real estate loans		15,767		2,245		62,060		80,072		3,905,020		3,985,092
Residential mortgage		8,496		763		31,646		40,905		2,244,685		2,285,590
Consumer loans:
Home equity		989		13		2,700		3,702		465,902		469,604
Automobile		7,794		303		461		8,558		763,932		772,490
Other consumer		192		35		749		976		135,658		136,634
Total consumer loans		8,975		351		3,910		13,236		1,365,492		1,378,728
Total	$	37,585	$	4,016	$	124,264	$	165,865	$	9,361,932	$	9,527,797

Impaired Loans

The following table presents the information about impaired loans by loan portfolio class at December 31, 2012 and 2011:

	Recorded Investment With No Related Allowance		Recorded Investment With Related Allowance		Total Recorded Investment		Unpaid Contractual Principal Balance		Related Allowance
	(in thousands)
December 31, 2012
Commercial and industrial	$	3,236	$	46,461	$	49,697	$	62,183	$	12,088
Commercial real estate:
Commercial real estate		26,724		84,151		110,875		125,875		11,788
Construction		6,339		14,002		20,341		23,678		4,793
Total commercial real estate loans		33,063		98,153		131,216		149,553		16,581
Residential mortgage		8,232		16,659		24,891		27,059		2,329
Consumer loans:
Home equity		672		258		930		1,169		15
Total consumer loans		672		258		930		1,169		15
Total	$	45,203	$	161,531	$	206,734	$	239,964	$	31,013
December 31, 2011
Commercial and industrial	$	6,193	$	48,665	$	54,858	$	71,111	$	11,105
Commercial real estate:
Commercial real estate		26,741		56,978		83,719		91,448		7,108
Construction		4,253		19,998		24,251		28,066		1,408
Total commercial real estate loans		30,994		76,976		107,970		119,514		8,516
Residential mortgage		998		20,007		21,005		22,032		3,577
Consumer loans:
Home equity		—		242		242		242		45
Total consumer loans		—		242		242		242		45
Total	$	38,185	$	145,890	$	184,075	$	212,899	$	23,243

Average Recorded Investment and Interest Income Recognized on Impaired Loans

The following table presents, by loan portfolio class, the average recorded investment and interest income recognized on impaired loans for the years ended December 31, 2012 and 2011:

	December 31,
	2012				2011
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(in thousands)
Commercial and industrial	$	47,940	$	1,463	$	43,095	$	1,457
Commercial real estate:
Commercial real estate		101,972		2,640		76,542		3,043
Construction		21,421		270		31,897		1,141
Total commercial real estate loans		123,393		2,910		108,439		4,184
Residential mortgage		31,620		716		19,015		706
Consumer loans:
Home equity		943		14		109		3
Total consume loans		943		14		109		3
Total	$	203,896	$	5,103	$	170,658	$	6,350

Pre-Modification and Post-Modification Outstanding Recorded Investments

The pre-modification and post-modification outstanding recorded investments disclosed in the table below represent the loan carrying amounts immediately prior to the modification and the carrying amounts at December 31, 2012 and 2011 respectively.

			Pre-Modification		Post-Modification
Troubled Debt	Number of		Outstanding		Outstanding
Restructurings	Contracts		Recorded Investment		Recorded Investment
			($ in thousands)
December 31, 2012
Commercial and industrial*		20	$	40,785	$	36,066
Commercial real estate:
Commercial real estate		18		40,499		39,535
Construction		5		7,092		4,885
Total commercial real estate		23		47,591		44,420
Residential mortgage		43		10,133		9,125
Consumer		14		985		737
Total		100	$	99,494	$	90,348
December 31, 2011
Commercial and industrial*		27	$	29,142	$	28,866
Commercial real estate:
Commercial real estate		7		12,890		12,777
Construction		2		3,422		3,422
Total commercial real estate		9		16,312		16,199
Residential mortgage		5		1,237		1,223
Consumer		1		58		58
Total		42	$	46,749	$	46,346

* Includes 9 finance leases with pre and post modification outstanding recorded investments totaling $372 thousand and $294 thousand, respectively, for the year ended December 31, 2011. During 2012, the finance leases were immaterial.

Non-Covered Loans Modified as TDR

The following table presents non-PCI loans modified as TDRs within the previous 12 months from, and for which there was a payment default (90 days or more past due) during year ended December 31, 2012:

	December 31, 2012
Troubled Debt Restructurings Subsequently Defaulted	Number of Contracts		Recorded Investment
	($ in thousands)
Commercial real estate		1	$	516
Residential mortgage		10		2,628
Home equity		2		222
Total		13	$	3,366

Risk Category of Loans

The following table presents the risk category of loans by class of loans (excluding PCI loans) based on the most recent analysis performed at December 31, 2012 and 2011.

Credit exposure—			Special						Total Non-PCI
by internally assigned risk rating	Pass		Mention		Substandard		Doubtful		Loans
	(in thousands)
December 31, 2012
Commercial and industrial	$	1,673,604	$	64,777	$	94,184	$	178	$	1,832,743
Commercial real estate		3,563,530		59,175		149,379		—		3,772,084
Construction		340,357		32,817		19,521		7,160		399,855
Total	$	5,577,491	$	156,769	$	263,084	$	7,338	$	6,004,682
December 31, 2011
Commercial and industrial	$	1,669,943	$	95,726	$	112,186	$	532	$	1,878,387
Commercial real estate		3,350,475		82,612		141,002		—		3,574,089
Construction		329,848		42,845		38,114		196		411,003
Total	$	5,350,266	$	221,183	$	291,302	$	728	$	5,863,479

Recorded Investment in Loan Classes Based on Payment Activity

The following table presents the recorded investment in those loan classes based on payment activity as of December 31, 2012 and 2011:

Credit exposure— by payment activity	Performing Loans		Non-Performing Loans		Total Non-PCI Loans
	(in thousands)
December 31, 2012
Residential mortgage	$	2,413,004	$	32,623	$	2,445,627
Home equity		436,483		2,398		438,881
Automobile		786,223		305		786,528
Other consumer		178,789		628		179,417
Total	$	3,814,499	$	35,954	$	3,850,453
December 31, 2011
Residential mortgage	$	2,253,944	$	31,646	$	2,285,590
Home equity		466,904		2,700		469,604
Automobile		772,029		461		772,490
Other consumer		135,885		749		136,634
Total	$	3,628,762	$	35,556	$	3,664,318

Credit exposure—	Performing		Non-Performing		Total
by payment activity	Loans		Loans		PCI Loans
	(in thousands)
December 31, 2012
Commercial and industrial	$	292,163	$	6,437	$	298,600
Commercial real estate		715,812		50,081		765,893
Construction		17,967		9,546		27,513
Residential mortgage		22,173		4,288		26,461
Consumer		47,689		1,508		49,197
Total	$	1,095,804	$	71,860	$	1,167,664
December 31, 2011
Commercial and industrial	$	67,424	$	16,318	$	83,742
Commercial real estate		112,047		48,604		160,651
Construction		623		6,351		6,974
Residential mortgage		10,118		5,428		15,546
Consumer		4,931		—		4,931
Total	$	195,143	$	76,701	$	271,844