Covered Assets and FDIC Loss-sharing Asset (Tables)

6 Months Ended

Jun. 30, 2012

The following is an analysis of our covered loans, net of related allowance for losses as of June 30, 2012 and December 31, 2011:



	June 30, 2012					December 31, 2011
	Covered Loans		Weighted- Average Risk Rating	Allowance for Loan Losses		Covered Loans		Weighted- Average Risk Rating	Allowance for Loan Losses
	(dollars in thousands)
Commercial business	$	160,250	5.95	$	9,984	$	195,737	6.05	$	977
Real estate:
One-to-four family residential	68,175		5.27	4,655		79,328		5.32	678
Commercial and multifamily residential	276,844		5.46	10,139		311,308		5.65	2,683
Total real estate	345,019			14,794		390,636			3,361
Real estate construction:
One-to-four family residential	35,137		6.89	2,202		54,402		7.32	136
Commercial and multifamily residential	19,558		7.01	1,340		23,661		7.32	86
Total real estate construction	54,695			3,542		78,063			222
Consumer	49,123		4.73	3,464		56,877		4.84	384
Subtotal of covered loans	609,087			$	31,784	721,313			$	4,944
Less:
Valuation discount resulting from acquisition accounting	114,309					184,440
Allowance for loan losses	31,784					4,944
Covered loans, net of allowance for loan losses	$	462,994				$	531,929

The following table shows the changes in accretable yield for acquired loans for the three and six months ended June 30, 2012 and 2011:



	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
	(in thousands)
Balance at beginning of period	$	239,677		$	217,351		$	259,669		$	256,572
Accretion	(21,817		)	(15,458		)	(49,474		)	(36,761		)
Disposals	(3,273		)	(1,254		)	(5,072		)	(4,413		)
Reclassifications from (to) nonaccretable difference	(526		)	53,884			8,938			39,125
Balance at end of period	$	214,061		$	314,333		$	214,061		$	314,333

The following table sets forth activity in covered OREO at carrying value for the three and six months ended June 30, 2012 and 2011:



	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
	(in thousands)
Covered OREO:
Balance at beginning of period	$	24,430		$	13,527		$	28,126		$	14,443
Established through acquisitions	—			10,896			—			10,896
Transfers in	2,933			1,668			5,401			5,092
Additional OREO write-downs	(533		)	(99		)	(2,038		)	(113		)
Proceeds from sale of OREO property	(10,356		)	(4,122		)	(18,381		)	(11,081		)
Gain on sale of OREO	2,605			2,369			5,971			5,002
Total covered OREO at end of period	$	19,079		$	24,239		$	19,079		$	24,239

The following table shows a detailed analysis of the FDIC loss-sharing asset for the three and six months ended June 30, 2012 and 2011:



	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
	(in thousands)
Balance at beginning of period	$	159,061		$	193,053		$	175,071		$	205,991
Adjustments not reflected in income
Established through acquisitions	—			68,734			—			68,734
Cash received from the FDIC	(19,508		)	(44,892		)	(34,313		)	(44,892		)
FDIC reimbursable losses, net	618			(782		)	1,081			1,054
Adjustments reflected in income
Amortization, net	(9,851		)	(8,059		)	(23,725		)	(21,628		)
Impairment	9,350			1,841			21,898			1,503
Sale of other real estate	(1,498		)	(1,149		)	(3,565		)	(2,016		)
Write-downs of other real estate	1,732			443			3,362			443
Other	99			505			194			505
Balance at end of period	$	140,003		$	209,694		$	140,003		$	209,694

Covered Loans [Member]

The changes in the ALLL for covered loans for the three and six months ended June 30, 2012 and 2011 are summarized as follows:



	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
	(in thousands)
Balance at beginning of period	$	20,504		$	5,633		$	4,944		$	6,055
Loans charged off	(1,035		)	(56		)	(1,597		)	(56		)
Recoveries	627			70			1,064			70
Provision charged to expense	11,688			2,301			27,373			1,879
Balance at end of period	$	31,784		$	7,948		$	31,784		$	7,948