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Allowance for Noncovered Loan and Lease Losses and Unfunded Commitments and Letters of Credit (Tables)
 9 Months Ended
Sep. 30, 2012
Financing Receivable, Allowance for Credit Losses [Line Items]  
Changes in the Allowance for Unfunded Commitments and Letters of Credit
Changes in the allowance for unfunded commitments and letters of credit are summarized as follows:
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2012
 
2011
 
2012
 
2011
 
 
(in thousands)
Balance at beginning of period
 
$
1,665

 
$
1,460

 
$
1,535

 
$
1,165

Net changes in the allowance for unfunded commitments and letters of credit
 
250

 
—

 
380

 
295

Balance at end of period
 
$
1,915

 
$
1,460

 
$
1,915

 
$
1,460
Financing Receivable Credit Quality Indicators
The following is an analysis of the credit quality of our covered loan portfolio as of December 31, 2012 and 2011:
 
 
Pass
 
Special Mention
 
Substandard
 
Doubtful
 
Loss
 
Total
September 30, 2012
 
(in thousands)
Covered loans:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial business:
 
 
 
 
 
 
 
 
 
 
 
 
Secured
 
$
81,399

 
$
1,990

 
$
50,526

 
$
—

 
$
—

 
$
133,915

Unsecured
 
4,899

 
—

 
2,280

 
—

 
—

 
7,179

Real estate:
 
 
 
 
 
 
 
 
 
 
 
 
One-to-four family residential
 
47,369

 
1,493

 
14,097

 
—

 
—

 
62,959

Commercial and multifamily residential:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial land
 
17,464

 
—

 
13,259

 
—

 
—

 
30,723

Income property multifamily
 
92,829

 
3,337

 
23,171

 
—

 
—

 
119,337

Owner occupied
 
87,809

 
3,229

 
16,181

 
—

 
—

 
107,219

Real estate construction:
 
 
 
 
 
 
 
 
 
 
 
 
One-to-four family residential:
 
 
 
 
 
 
 
 
 
 
 
 
Land and acquisition
 
4,733

 
1,422

 
8,258

 
—

 
—

 
14,413

Residential construction
 
6,504

 
—

 
8,857

 
—

 
—

 
15,361

Commercial and multifamily residential:
 
 
 
 
 
 
 
 
 
 
 
 
Income property multifamily
 
4,702

 
—

 
8,652

 
—

 
—

 
13,354

Owner occupied
 
1,114

 
—

 
2,226

 
—

 
—

 
3,340

Consumer
 
40,940

 
177

 
5,415

 
—

 
—

 
46,532

Total
 
$
389,762

 
$
11,648

 
$
152,922

 
$
—

 
$
—

 
554,332

Less:
 
 
 
 
 
 
 
 
 
 
 
 
Valuation discount resulting from acquisition accounting
 
95,889

Allowance for loan losses
 
29,157

Covered loans, net
 
$
429,286

 
 
Pass
 
Special Mention
 
Substandard
 
Doubtful
 
Loss
 
Total
December 31, 2011
 
(in thousands)
Covered loans:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial business:
 
 
 
 
 
 
 
 
 
 
 
 
Secured
 
$
103,472

 
$
6,239

 
$
73,793

 
$
1,209

 
$
1

 
$
184,714

Unsecured
 
7,608

 
741

 
2,659

 
15

 
—

 
11,023

Real estate:
 
 
 
 
 
 
 
 
 
 
 
 
One-to-four family residential
 
56,948

 
2,210

 
20,170

 
—

 
—

 
79,328

Commercial and multifamily residential:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial land
 
21,947

 
1,213

 
21,027

 
—

 
—

 
44,187

Income property multifamily
 
109,339

 
4,013

 
35,567

 
—

 
—

 
148,919

Owner occupied
 
89,555

 
3,673

 
24,974

 
—

 
—

 
118,202

Real estate construction:
 
 
 
 
 
 
 
 
 
 
 
 
One-to-four family residential:
 
 
 
 
 
 
 
 
 
 
 
 
Land and acquisition
 
4,834

 
1,535

 
17,646

 
1,289

 
—

 
25,304

Residential construction
 
8,264

 
371

 
20,463

 
—

 
—

 
29,098

Commercial and multifamily residential:
 
 
 
 
 
 
 
 
 
 
 
 
Income property multifamily
 
2,928

 
2,779

 
13,657

 
—

 
—

 
19,364

Owner occupied
 
1,142

 
—

 
3,155

 
—

 
—

 
4,297

Consumer
 
48,067

 
255

 
8,150

 
357

 
48

 
56,877

Total
 
$
454,104

 
$
23,029

 
$
241,261

 
$
2,870

 
$
49

 
721,313

Less:
 
 
 
 
 
 
 
 
 
 
 
 
Valuation discount resulting from acquisition accounting
 
184,440

Allowance for loan losses
 
4,944

Covered loans, net
 
$
531,929
Noncovered Loans [Member]
  
Financing Receivable, Allowance for Credit Losses [Line Items]  
Allowance for Credit Losses on Financing Receivables
The following tables show a detailed analysis of the allowance for loan and lease losses for noncovered loans for the three and nine months ended September 30, 2012 and 2011: 
 
 
Beginning
Balance
 
Charge-offs
 
Recoveries
 
Provision (Recovery)
 
Ending
Balance
 
Specific
Reserve
 
General
Allocation
Three months ended September 30, 2012
 
(in thousands)
Noncovered loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial business
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Secured
 
$
26,505

 
$
(3,744
)
 
$
194

 
$
3,007

 
$
25,962

 
$
315

 
$
25,647

Unsecured
 
772

 
(31
)
 
83

 
(56
)
 
768

 
100

 
668

Real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
One-to-four family residential
 
673

 
(49
)
 
157

 
(216
)
 
565

 
69

 
496

Commercial & multifamily residential
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial land
 
270

 
(55
)
 
—

 
207

 
422

 
1

 
421

Income property multifamily
 
8,726

 
(436
)
 
357

 
387

 
9,034

 
—

 
9,034

Owner occupied
 
9,037

 
(101
)
 
89

 
(694
)
 
8,331

 
245

 
8,086

Real estate construction:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
One-to-four family residential
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Land and acquisition
 
1,651

 
(307
)
 
404

 
(279
)
 
1,469

 
—

 
1,469

Residential construction
 
1,197

 
(18
)
 
—

 
3

 
1,182

 
—

 
1,182

Commercial & multifamily residential
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income property multifamily
 
755

 
—

 
63

 
(456
)
 
362

 
—

 
362

Owner occupied
 
68

 
—

 
—

 
23

 
91

 
—

 
91

Consumer
 
2,049

 
(500
)
 
350

 
267

 
2,166

 
—

 
2,166

Unallocated
 
493

 
—

 
—

 
682

 
1,175

 
—

 
1,175

Total
 
$
52,196

 
$
(5,241
)
 
$
1,697

 
$
2,875

 
$
51,527

 
$
730

 
$
50,797

 
 
Beginning
Balance
 
Charge-offs
 
Recoveries
 
Provision (Recovery)
 
Ending
Balance
 
Specific
Reserve
 
General
Allocation
Nine months ended September 30, 2012
 
(in thousands)
Noncovered loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial business
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Secured
 
$
24,745

 
$
(8,126
)
 
$
1,184

 
$
8,159

 
$
25,962

 
$
315

 
$
25,647

Unsecured
 
689

 
(52
)
 
130

 
1

 
768

 
100

 
668

Real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
One-to-four family residential
 
654

 
(499
)
 
202

 
208

 
565

 
69

 
496

Commercial & multifamily residential
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial land
 
488

 
(437
)
 
—

 
371

 
422

 
1

 
421

Income property multifamily
 
9,551

 
(3,959
)
 
710

 
2,732

 
9,034

 
—

 
9,034

Owner occupied
 
9,606

 
(712
)
 
628

 
(1,191
)
 
8,331

 
245

 
8,086

Real estate construction:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
One-to-four family residential
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Land and acquisition
 
2,331

 
(809
)
 
827

 
(880
)
 
1,469

 
—

 
1,469

Residential construction
 
864

 
(617
)
 
79

 
856

 
1,182

 
—

 
1,182

Commercial & multifamily residential
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income property multifamily
 
665

 
(93
)
 
64

 
(274
)
 
362

 
—

 
362

Owner occupied
 
35

 
—

 
—

 
56

 
91

 
—

 
91

Consumer
 
2,719

 
(1,968
)
 
809

 
606

 
2,166

 
—

 
2,166

Unallocated
 
694

 
—

 
—

 
481

 
1,175

 
—

 
1,175

Total
 
$
53,041

 
$
(17,272
)
 
$
4,633

 
$
11,125

 
$
51,527

 
$
730

 
$
50,797


 
 
Beginning
Balance
 
Charge-offs
 
Recoveries
 
Provision (Recovery)
 
Ending
Balance
 
Specific
Reserve
 
General
Allocation
Three months ended September 30, 2011
 
(in thousands)
Noncovered loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial business
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Secured
 
$
22,320

 
$
(1,904
)
 
$
420

 
$
2,462

 
$
23,298

 
$
54

 
$
23,244

Unsecured
 
573

 
(42
)
 
40

 
167

 
738

 
—

 
738

Real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
One-to-four family residential
 
847

 
(53
)
 
78

 
70

 
942

 
—

 
942

Commercial & multifamily residential
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial land
 
894

 
(4
)
 
—

 
(130
)
 
760

 
—

 
760

Income property multifamily
 
14,709

 
(339
)
 
10

 
(5,407
)
 
8,973

 
297

 
8,676

Owner occupied
 
6,479

 
(100
)
 
—

 
311

 
6,690

 
408

 
6,282

Real estate construction:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
One-to-four family residential
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Land and acquisition
 
2,852

 
(169
)
 
63

 
269

 
3,015

 
175

 
2,840

Residential construction
 
1,704

 
(14
)
 
56

 
(222
)
 
1,524

 
—

 
1,524

Commercial & multifamily residential
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income property multifamily
 
43

 
(145
)
 
—

 
157

 
55

 
—

 
55

Owner occupied
 
34

 
—

 
—

 
(7
)
 
27

 
—

 
27

Consumer
 
2,748

 
(2,102
)
 
70

 
2,985

 
3,701

 
32

 
3,669

Unallocated
 
854

 
—

 
—

 
(155
)
 
699

 
—

 
699

Total
 
$
54,057

 
$
(4,872
)
 
$
737

 
$
500

 
$
50,422

 
$
966

 
$
49,456

 
 
Beginning
Balance
 
Charge-offs
 
Recoveries
 
Provision (Recovery)
 
Ending
Balance
 
Specific
Reserve
 
General
Allocation
Nine months ended September 30, 2011
 
(in thousands)
Noncovered loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial business
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Secured
 
$
21,811

 
$
(6,025
)
 
$
749

 
$
6,763

 
$
23,298

 
$
54

 
$
23,244

Unsecured
 
738

 
(126
)
 
408

 
(282
)
 
738

 
—

 
738

Real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
One-to-four family residential
 
1,100

 
(717
)
 
78

 
481

 
942

 
—

 
942

Commercial & multifamily residential
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial land
 
634

 
(660
)
 
—

 
786

 
760

 
—

 
760

Income property multifamily
 
15,210

 
(979
)
 
65

 
(5,323
)
 
8,973

 
297

 
8,676

Owner occupied
 
9,692

 
(723
)
 
31

 
(2,310
)
 
6,690

 
408

 
6,282

Real estate construction:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
One-to-four family residential
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Land and acquisition
 
3,769

 
(1,347
)
 
1,831

 
(1,238
)
 
3,015

 
175

 
2,840

Residential construction
 
2,292

 
(1,068
)
 
92

 
208

 
1,524

 
—

 
1,524

Commercial & multifamily residential
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income property multifamily
 
274

 
(1,710
)
 
—

 
1,491

 
55

 
—

 
55

Owner occupied
 
70

 
—

 
—

 
(43
)
 
27

 
—

 
27

Consumer
 
2,120

 
(3,298
)
 
178

 
4,701

 
3,701

 
32

 
3,669

Unallocated
 
3,283

 
—

 
—

 
(2,584
)
 
699

 
—

 
699

Total
 
$
60,993

 
$
(16,653
)
 
$
3,432

 
$
2,650

 
$
50,422

 
$
966

 
$
49,456
Financing Receivable Credit Quality Indicators
The following is an analysis of the credit quality of our noncovered loan portfolio as of September 30, 2012 and December 31, 2011:
 
 
Pass
 
Special Mention
 
Substandard
 
Doubtful
 
Loss
 
Total
September 30, 2012
 
(in thousands)
Noncovered loans:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial business:
 
 
 
 
 
 
 
 
 
 
 
 
Secured
 
$
1,024,510

 
$
18,596

 
$
53,893

 
$
—

 
$
—

 
$
1,096,999

Unsecured
 
41,496

 
26

 
544

 
—

 
—

 
42,066

Real estate:
 
 
 
 
 
 
 
 
 
 
 
 
One-to-four family residential
 
45,393

 
407

 
2,025

 
—

 
—

 
47,825

Commercial and multifamily residential:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial land
 
39,842

 
—

 
4,047

 
—

 
—

 
43,889

Income property multifamily
 
557,868

 
8,496

 
19,514

 
—

 
—

 
585,878

Owner occupied
 
356,582

 
3,940

 
37,797

 
—

 
—

 
398,319

Real estate construction:
 
 
 
 
 
 
 
 
 
 
 
 
One-to-four family residential:
 
 
 
 
 
 
 
 
 
 
 
 
Land and acquisition
 
11,467

 
2,035

 
5,580

 
—

 
—

 
19,082

Residential construction
 
25,130

 
476

 
5,324

 
—

 
—

 
30,930

Commercial and multifamily residential:
 
 
 
 
 
 
 
 
 
 
 
 
Income property multifamily
 
27,027

 
—

 
—

 
—

 
—

 
27,027

Owner occupied
 
23,974

 
—

 
—

 
—

 
—

 
23,974

Consumer
 
154,853

 
298

 
5,634

 
70

 
—

 
160,855

Total
 
$
2,308,142

 
$
34,274

 
$
134,358

 
$
70

 
$
—

 
2,476,844

Less:
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses
 
51,527

Noncovered loans, net
 
$
2,425,317

 
 
Pass
 
Special Mention
 
Substandard
 
Doubtful
 
Loss
 
Total
December 31, 2011
 
(in thousands)
Noncovered loans:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial business:
 
 
 
 
 
 
 
 
 
 
 
 
Secured
 
$
908,883

 
$
18,703

 
$
53,447

 
$
384

 
$
—

 
$
981,417

Unsecured
 
46,732

 
318

 
356

 
—

 
—

 
47,406

Real estate:
 
 
 
 
 
 
 
 
 
 
 
 
One-to-four family residential
 
58,517

 
2,040

 
3,506

 
—

 
—

 
64,063

Commercial and multifamily residential:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial land
 
44,166

 
5

 
6,510

 
—

 
—

 
50,681

Income property multifamily
 
492,922

 
16,002

 
25,069

 
—

 
—

 
533,993

Owner occupied
 
351,928

 
13,590

 
39,266

 
—

 
5

 
404,789

Real estate construction:
 
 
 
 
 
 
 
 
 
 
 
 
One-to-four family residential:
 
 
 
 
 
 
 
 
 
 
 
 
Land and acquisition
 
12,349

 
2,684

 
10,168

 
—

 
—

 
25,201

Residential construction
 
16,764

 
1,649

 
5,518

 
—

 
—

 
23,931

Commercial and multifamily residential:
 
 
 
 
 
 
 
 
 
 
 
 
Income property multifamily
 
12,812

 
—

 
8,065

 
—

 
—

 
20,877

Owner occupied
 
12,790

 
—

 
—

 
—

 
—

 
12,790

Consumer
 
176,304

 
859

 
6,060

 
—

 
—

 
183,223

Total
 
$
2,134,167

 
$
55,850

 
$
157,965

 
$
384

 
$
5

 
2,348,371

Less:
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses
 
53,041

Noncovered loans, net
 
$
2,295,330