Allowance for Noncovered Loan and Lease Losses and Unfunded Commitments and Letters of Credit (Tables)

3 Months Ended

Mar. 31, 2014

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, a component of other liabilities in the consolidated balance sheet, are summarized as follows:

	Three Months Ended
	March 31,
	2014			2013
	(in thousands)
Balance at beginning of period	$	2,505		$	1,915
Net changes in the allowance for unfunded commitments and letters of credit	(50		)	—
Balance at end of period	$	2,455		$	1,915

Financing Receivable Credit Quality Indicators

The following is an analysis of the credit quality of our covered loan portfolio as of March 31, 2014 and December 31, 2013:

	Pass		Special Mention		Substandard		Doubtful		Loss		Total
March 31, 2014	(in thousands)
Covered loans:
Commercial business:
Secured	$	44,916	$	1,276	$	15,549	$	—	$	—	$	61,741
Unsecured	2,728		396		80		—		—		3,204
Real estate:
One-to-four family residential	32,729		1,828		4,499		—		—		39,056
Commercial and multifamily residential:
Commercial land	10,487		—		7,740		—		—		18,227
Income property	58,519		3,945		7,557		—		—		70,021
Owner occupied	65,389		814		9,525		—		—		75,728
Real estate construction:
One-to-four family residential:
Land and acquisition	4,036		—		1,579		—		—		5,615
Residential construction	2,973		—		2,381		—		—		5,354
Commercial and multifamily residential:
Income property	3,761		—		1,523		—		—		5,284
Owner occupied	1,065		—		—		—		—		1,065
Consumer	29,657		—		2,857		27		—		32,541
Total	$	256,260	$	8,259	$	53,290	$	27	$	—	317,836
Less:
Valuation discount resulting from acquisition accounting											37,549
Allowance for loan losses											20,129
Covered loans, net											$	260,158

	Pass		Special Mention		Substandard		Doubtful		Loss		Total
December 31, 2013	(in thousands)
Covered loans:
Commercial business:
Secured	$	48,510	$	2,849	$	18,291	$	—	$	—	$	69,650
Unsecured	2,732		396		92		—		—		3,220
Real estate:
One-to-four family residential	35,066		1,842		4,734		—		—		41,642
Commercial and multifamily residential:
Commercial land	10,778		198		7,589		—		—		18,565
Income property	55,985		3,950		10,657		—		—		70,592
Owner occupied	67,653		111		13,958		—		—		81,722
Real estate construction:
One-to-four family residential:
Land and acquisition	4,674		2,739		1,936		—		—		9,349
Residential construction	3,008		—		2,424		—		—		5,432
Commercial and multifamily residential:
Income property	3,806		—		1,709		—		—		5,515
Owner occupied	1,074		—		280		—		—		1,354
Consumer	30,722		33		3,319		27		—		34,101
Total	$	264,008	$	12,118	$	64,989	$	27	$	—	341,142
Less:
Valuation discount resulting from acquisition accounting											43,297
Allowance for loan losses											20,174
Covered loans, net											$	277,671

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 months ended March 31, 2014 and 2013:

	Beginning Balance		Charge-offs			Recoveries		Provision (Recovery)			Ending Balance		Specific Reserve		General Allocation
Three months ended March 31, 2014	(in thousands)
Noncovered loans:
Commercial business:
Secured	$	31,027	$	(198	)	$	448	$	(2,476	)	$	28,801	$	1,521	$	27,280
Unsecured	696		(35		)	42		43			746		27		719
Real estate:
One-to-four family residential	1,252		(207		)	28		121			1,194		133		1,061
Commercial & multifamily residential:
Commercial land	489		—			17		73			579		—		579
Income property	9,234		—			13		860			10,107		—		10,107
Owner occupied	3,605		(1,023		)	9		1,969			4,560		38		4,522
Real estate construction:
One-to-four family residential:
Land and acquisition	610		—			39		(69		)	580		71		509
Residential construction	822		—			3		(129		)	696		—		696
Commercial & multifamily residential:
Income property	285		—			—		35			320		—		320
Owner occupied	58		—			—		96			154		—		154
Consumer	2,547		(727		)	253		564			2,637		3		2,634
Unallocated	1,655		—			—		(1,587		)	68		—		68
Total	$	52,280	$	(2,190	)	$	852	$	(500	)	$	50,442	$	1,793	$	48,649

	Beginning Balance		Charge-offs			Recoveries		Provision (Recovery)			Ending Balance		Specific Reserve		General Allocation
Three months ended March 31, 2013	(in thousands)
Noncovered loans:
Commercial business:
Secured	$	27,270	$	(988	)	$	79	$	510		$	26,871	$	67	$	26,804
Unsecured	753		(326		)	34		289			750		84		666
Real estate:
One-to-four family residential	694		(116		)	—		79			657		108		549
Commercial & multifamily residential:
Commercial land	460		—			10		(37		)	433		—		433
Income property	11,033		(783		)	79		(918		)	9,411		18		9,393
Owner occupied	6,362		—			4		(908		)	5,458		34		5,424
Real estate construction:
One-to-four family residential:
Land and acquisition	1,171		(32		)	2,139		(2,288		)	990		74		916
Residential construction	635		(101		)	—		4			538		—		538
Commercial & multifamily residential:
Income property	316		—			—		66			382		—		382
Owner occupied	102		—			—		6			108		—		108
Consumer	2,437		(171		)	47		51			2,364		—		2,364
Unallocated	1,011		—			—		2,146			3,157		—		3,157
Total	$	52,244	$	(2,517	)	$	2,392	$	(1,000	)	$	51,119	$	385	$	50,734

Financing Receivable Credit Quality Indicators

The following is an analysis of the credit quality of our noncovered loan portfolio as of March 31, 2014 and December 31, 2013:

	Pass		Special Mention		Substandard		Doubtful		Loss		Total
March 31, 2014	(in thousands)
Noncovered loans:
Commercial business:
Secured	$	1,422,773	$	42,648	$	58,778	$	161	$	—	$	1,524,360
Unsecured	71,654		199		310		—		—		72,163
Real estate:
One-to-four family residential	97,004		1,448		4,402		—		—		102,854
Commercial and multifamily residential:
Commercial land	139,910		—		5,385		—		—		145,295
Income property	1,150,595		974		35,413		—		—		1,186,982
Owner occupied	739,956		1,443		11,857		—		—		753,256
Real estate construction:
One-to-four family residential:
Land and acquisition	9,928		—		3,652		—		—		13,580
Residential construction	38,413		2,120		2,800		—		—		43,333
Commercial and multifamily residential:
Income property	90,235		—		463		—		—		90,698
Owner occupied	38,973		415		—		—		—		39,388
Consumer	318,977		—		6,185		5		—		325,167
Total	$	4,118,418	$	49,247	$	129,245	$	166	$	—	4,297,076
Less:
Allowance for loan and lease losses											50,442
Noncovered loans, net											$	4,246,634

	Pass		Special Mention		Substandard		Doubtful		Loss		Total
December 31, 2013	(in thousands)
Noncovered loans:
Commercial business:
Secured	$	1,372,038	$	43,309	$	68,300	$	—	$	—	$	1,483,647
Unsecured	72,226		199		179		—		—		72,604
Real estate:
One-to-four family residential	98,626		1,567		5,699		—		—		105,892
Commercial and multifamily residential:
Commercial land	137,850		—		4,984		—		—		142,834
Income property	1,108,033		5,473		32,926		—		—		1,146,432
Owner occupied	748,725		—		11,884		—		—		760,609
Real estate construction:
One-to-four family residential:
Land and acquisition	7,526		—		4,144		—		—		11,670
Residential construction	36,270		2,352		3,370		—		—		41,992
Commercial and multifamily residential:
Income property	86,206		—		315		—		—		86,521
Owner occupied	38,916		—		—		—		—		38,916
Consumer	321,348		331		6,188		467		—		328,334
Total	$	4,027,764	$	53,231	$	137,989	$	467	$	—	4,219,451
Less:
Allowance for loan and lease losses											52,280
Noncovered loans, net											$	4,167,171