Covered Assets and FDIC Loss-sharing Asset (Tables)
| 9 Months Ended |
|---|
Sep. 30, 2011 |
|---|
| Covered Assets And FDIC Loss Sharing Asset | |
| Analysis and Allowance for Losses on Covered Loans | The following is an analysis of our covered loans, net of related allowance for losses on covered loans as of September 30, 2011 and December 31, 2010: | | | | | | | | | | | | (dollars in thousands) | | Covered Loans September 30, 2011 | | Weighted-
Average
Risk Rating | | Allowance
for Loan
Losses | Commercial Business | | $ | 220,727 |
| | 6.09 | | $ | 2,018 |
| Real Estate: | | | | | | | One-to-four family residential | | 84,724 |
| | 5.33 | | 1,071 |
| Commercial and multifamily residential | | 346,406 |
| | 5.90 | | 4,293 |
| Total Real Estate | | 431,130 |
| | | | 5,364 |
| Real Estate Construction: | | | | | | | One-to-four family residential | | 55,928 |
| | 7.40 | | 205 |
| Commercial and multifamily residential | | 30,034 |
| | 7.15 | | 134 |
| Total Real Estate Construction | | 85,962 |
| | | | 339 |
| Consumer | | 60,306 |
| | 5.07 | | 606 |
| Subtotal of covered loans | | 798,125 |
| | | | $ | 8,327 |
| Less: | | | | | | | Valuation discount resulting from acquisition accounting | | 218,993 |
| | | | | Allowance for loan losses | | 8,327 |
| | | | | Covered loans, net of valuation discounts and allowance for loan losses | | $ | 570,805 |
| | | | | (dollars in thousands) | | Covered Loans December 31, 2010 | | Weighted-
Average
Risk Rating | | Allowance
for Loan
Losses | Commercial Business | | $ | 165,255 |
| | 5.74 | | $ | 2,903 |
| Real Estate: | | | | | | | One-to-four family residential | | 68,700 |
| | 4.77 | | 1,013 |
| Commercial and multifamily residential | | 341,063 |
| | 5.70 | | 821 |
| Total Real Estate | | 409,763 |
| | | | 1,834 |
| Real Estate Construction: | | | | | | | One-to-four family residential | | 39,754 |
| | 7.29 | | 98 |
| Commercial and multifamily residential | | 41,624 |
| | 6.79 | | 469 |
| Total Real Estate Construction | | 81,378 |
| | | | 567 |
| Consumer | | 58,337 |
| | 4.49 | | 751 |
| Subtotal of covered loans | | 714,733 |
| | | | $ | 6,055 |
| Less: | | | | | | | Valuation discount resulting from acquisition accounting | | 191,617 |
| | | | | Allowance for loan losses | | 6,055 |
| | | | | Covered loans, net of valuation discounts and allowance for loan losses | | $ | 517,061 |
| | | | |
|
| Changes in Accretable Yield for Acquired Loans | The following table shows the changes in accretable yield for acquired loans for three and nine months ended September 30, 2011: | | | | | | | | | | (in thousands) | | Three months ended September 30, 2011 | | Nine months ended September 30, 2011 | Balance at beginning of period | | $ | 314,333 |
| | $ | 256,572 |
| Additions resulting from acquisitions | | — |
| | 59,811 |
| Accretion | | (23,608 | ) | | (60,369 | ) | Disposals | | (8,594 | ) | | (24,134 | ) | Reclassifications from nonaccretable difference | | 69 |
| | 50,320 |
| Balance at end of period | | $ | 282,200 |
| | $ | 282,200 |
|
|
| Schedule of Carrying Amounts for Acquired Loans at Acquisition Date | The following table shows the initially recorded amounts for loans acquired during 2011, which are accounted for on a pooled basis, at acquisition date, respectively:
| | | | | | | | | | | | First Heritage Bank | | Summit Bank | (in thousands) | | May 27, 2011 | | May 20, 2011 | Contractually required payments of interest and principal | | $ | 151,611 |
| | $ | 127,823 |
| Nonaccretable difference | | (34,052 | ) | | (34,301 | ) | Cash flows expected to be collected(1) | | 117,559 |
| | 93,522 |
| Accretable yield | | (36,071 | ) | | (23,739 | ) | Carrying value of acquired loans | | $ | 81,488 |
| | $ | 69,783 |
| (1) Represents undiscounted expected principal and interest cash flows | | |
|
| Covered OREO at Carrying Value | The following table sets forth activity in covered OREO at carrying value for the three and nine months ended September 30, 2011: | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | (in thousands) | | September 30, 2011 | | September 30, 2011 | Covered OREO: | | | | | Balance, beginning of period | | $ | 23,730 |
| | $ | 14,443 |
| Established through acquisitions | | — |
| | 10,387 |
| Transfers in, net of write-downs ($952 and $1,393, respectively) | | 2,979 |
| | 8,071 |
| OREO improvements | | — |
| | — |
| Additional OREO write-downs | | (189 | ) | | (302 | ) | Proceeds from sale of OREO property | | (3,523 | ) | | (14,604 | ) | Gain on sale of OREO | | 1,838 |
| | 6,840 |
| Total covered OREO, end of period | | $ | 24,835 |
| | $ | 24,835 |
|
|
| FDIC Loss-sharing Asset | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | | | September 30, | | September 30, | (in thousands) | | 2011 | | 2010 | | 2011 | | 2010 | Balance at beginning of period | | $ | 209,694 |
| | $ | 226,745 |
| | $ | 205,991 |
| | $ | — |
| Adjustments not reflected in income | | | | | | | | | Established through acquisitions | | — |
| | — |
| | 68,734 |
| | 210,405 |
| Cash received from the FDIC | | (6,108 | ) | | (11,198 | ) | | (51,000 | ) | | (11,198 | ) | FDIC reimbursable losses, net | | 1,138 |
| | 416 |
| | 2,192 |
| | 13,357 |
| Adjustments reflected in income | | | | | | | | | (Amortization) accretion | | (9,333 | ) | | 2,401 |
| | (24,974 | ) | | 6,353 |
| Loan loss provision | | 921 |
| | — |
| | 2,424 |
| | — |
| Other | | (2,443 | ) | | (6,937 | ) | | (9,498 | ) | | (7,490 | ) | Balance at end of period | | $ | 193,869 |
| | $ | 211,427 |
| | $ | 193,869 |
| | $ | 211,427 |
|
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