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

6 Months Ended

Jun. 30, 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					Six Months Ended
	June 30,					June 30,
	2014			2013		2014			2013
	(in thousands)
Balance at beginning of period	$	2,455		$	1,915	$	2,505		$	1,915
Net changes in the allowance for unfunded commitments and letters of credit	(100		)	550		(150		)	550
Balance at end of period	$	2,355		$	2,465	$	2,355		$	2,465

Financing Receivable Credit Quality Indicators

The following is an analysis of the credit quality of our covered loan portfolio as of June 30, 2014 and December 31, 2013:

	Pass		Special Mention		Substandard		Doubtful		Loss		Total
June 30, 2014	(in thousands)
Covered loans:
Commercial business:
Secured	$	42,653	$	1,151	$	14,206	$	7	$	—	$	58,017
Unsecured	2,168		—		102		—		—		2,270
Real estate:
One-to-four family residential	31,618		—		5,093		—		—		36,711
Commercial and multifamily residential:
Commercial land	10,410		—		7,253		—		—		17,663
Income property	56,858		3,220		7,695		—		—		67,773
Owner occupied	61,344		362		6,623		—		—		68,329
Real estate construction:
One-to-four family residential:
Land and acquisition	3,589		—		1,405		—		—		4,994
Residential construction	420		—		4,030		—		—		4,450
Commercial and multifamily residential:
Income property	1,478		—		1,491		—		—		2,969
Owner occupied	941		—		—		—		—		941
Consumer	27,531		—		3,224		—		—		30,755
Total	$	239,010	$	4,733	$	51,122	$	7	$	—	294,872
Less:
Valuation discount resulting from acquisition accounting											32,971
Allowance for loan losses											19,801
Covered loans, net											$	242,100

	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 and six months ended June 30, 2014 and 2013:

	Beginning Balance		Charge-offs			Recoveries		Provision (Recovery)			Ending Balance		Specific Reserve		General Allocation
Three months ended June 30, 2014	(in thousands)
Noncovered loans:
Commercial business:
Secured	$	28,801	$	(1,642	)	$	1,435	$	(3,077	)	$	25,517	$	128	$	25,389
Unsecured	746		(75		)	277		(194		)	754		19		735
Real estate:
One-to-four family residential	1,194		—			12		(123		)	1,083		128		955
Commercial & multifamily residential:
Commercial land	579		(29		)	2		(82		)	470		—		470
Income property	10,107		(1,934		)	505		1,833			10,511		—		10,511
Owner occupied	4,560		—			30		399			4,989		35		4,954
Real estate construction:
One-to-four family residential:
Land and acquisition	580		—			2		(179		)	403		69		334
Residential construction	696		—			440		(459		)	677		—		677
Commercial & multifamily residential:
Income property	320		—			—		94			414		—		414
Owner occupied	154		—			—		12			166		—		166
Consumer	2,637		(909		)	338		577			2,643		1		2,642
Unallocated	68		—			—		1,799			1,867		—		1,867
Total	$	50,442	$	(4,589	)	$	3,041	$	600		$	49,494	$	380	$	49,114
	Beginning Balance		Charge-offs			Recoveries		Provision (Recovery)			Ending Balance		Specific Reserve		General Allocation
Six months ended June 30, 2014	(in thousands)
Noncovered loans:
Commercial business:
Secured	$	31,027	$	(1,840	)	$	1,883	$	(5,553	)	$	25,517	$	128	$	25,389
Unsecured	696		(110		)	319		(151		)	754		19		735
Real estate:
One-to-four family residential	1,252		(207		)	40		(2		)	1,083		128		955
Commercial & multifamily residential:
Commercial land	489		(29		)	19		(9		)	470		—		470
Income property	9,234		(1,934		)	518		2,693			10,511		—		10,511
Owner occupied	3,605		(1,023		)	39		2,368			4,989		35		4,954
Real estate construction:
One-to-four family residential:
Land and acquisition	610		—			41		(248		)	403		69		334
Residential construction	822		—			443		(588		)	677		—		677
Commercial & multifamily residential:
Income property	285		—			—		129			414		—		414
Owner occupied	58		—			—		108			166		—		166
Consumer	2,547		(1,636		)	591		1,141			2,643		1		2,642
Unallocated	1,655		—			—		212			1,867		—		1,867
Total	$	52,280	$	(6,779	)	$	3,893	$	100		$	49,494	$	380	$	49,114

	Beginning Balance		Charge-offs			Recoveries		Provision (Recovery)			Ending Balance		Specific Reserve		General Allocation
Three months ended June 30, 2013	(in thousands)
Noncovered loans:
Commercial business:
Secured	$	26,871	$	(856	)	$	312	$	4,245		$	30,572	$	242	$	30,330
Unsecured	750		(105		)	40		136			821		51		770
Real estate:
One-to-four family residential	657		(28		)	141		(98		)	672		105		567
Commercial & multifamily residential:
Commercial land	433		(11		)	17		252			691		262		429
Income property	9,411		(35		)	27		292			9,695		76		9,619
Owner occupied	5,458		(568		)	40		(415		)	4,515		30		4,485
Real estate construction:
One-to-four family residential:
Land and acquisition	990		—			35		(256		)	769		73		696
Residential construction	538		—			14		(348		)	204		—		204
Commercial & multifamily residential:
Income property	382		—			—		(141		)	241		—		241
Owner occupied	108		—			—		(28		)	80		—		80
Consumer	2,364		(638		)	194		535			2,455		—		2,455
Unallocated	3,157		—			—		(2,174		)	983		—		983
Total	$	51,119	$	(2,241	)	$	820	$	2,000		$	51,698	$	839	$	50,859
	Beginning Balance		Charge-offs			Recoveries		Provision (Recovery)			Ending Balance		Specific Reserve		General Allocation
Six months ended June 30, 2013	(in thousands)
Noncovered loans:
Commercial business:
Secured	$	27,270	$	(1,844	)	$	392	$	4,754		$	30,572	$	242	$	30,330
Unsecured	753		(431		)	73		426			821		51		770
Real estate:
One-to-four family residential	694		(144		)	141		(19		)	672		105		567
Commercial & multifamily residential:
Commercial land	460		(11		)	27		215			691		262		429
Income property	11,033		(818		)	106		(626		)	9,695		76		9,619
Owner occupied	6,362		(568		)	44		(1,323		)	4,515		30		4,485
Real estate construction:
One-to-four family residential:
Land and acquisition	1,171		(32		)	2,174		(2,544		)	769		73		696
Residential construction	635		(101		)	14		(344		)	204		—		204
Commercial & multifamily residential:
Income property	316		—			—		(75		)	241		—		241
Owner occupied	102		—			—		(22		)	80		—		80
Consumer	2,437		(809		)	241		586			2,455		—		2,455
Unallocated	1,011		—			—		(28		)	983		—		983
Total	$	52,244	$	(4,758	)	$	3,212	$	1,000		$	51,698	$	839	$	50,859

Financing Receivable Credit Quality Indicators

The following is an analysis of the credit quality of our noncovered loan portfolio as of June 30, 2014 and December 31, 2013:

	Pass		Special Mention		Substandard		Doubtful		Loss		Total
June 30, 2014	(in thousands)
Noncovered loans:
Commercial business:
Secured	$	1,572,391	$	41,465	$	43,920	$	—	$	—	$	1,657,776
Unsecured	72,825		199		228		—		—		73,252
Real estate:
One-to-four family residential	95,647		55		4,960		—		—		100,662
Commercial and multifamily residential:
Commercial land	145,901		—		2,920		—		—		148,821
Income property	1,173,006		4,455		20,828		—		—		1,198,289
Owner occupied	742,585		2,996		8,940		—		—		754,521
Real estate construction:
One-to-four family residential:
Land and acquisition	9,758		—		1,722		—		—		11,480
Residential construction	46,335		—		3,216		—		—		49,551
Commercial and multifamily residential:
Income property	87,603		—		—		—		—		87,603
Owner occupied	45,538		413		—		—		—		45,951
Consumer	319,518		5		5,245		—		—		324,768
Total	$	4,311,107	$	49,588	$	91,979	$	—	$	—	4,452,674
Less:
Allowance for loan and lease losses											49,494
Noncovered loans, net											$	4,403,180

	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