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

9 Months Ended

Sep. 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				Nine Months Ended
	September 30,				September 30,
	2014		2013		2014		2013
	(in thousands)
Balance at beginning of period	$	2,355	$	2,465	$	2,505	$	1,915
Net changes in the allowance for unfunded commitments and letters of credit	150		200		—		750
Balance at end of period	$	2,505	$	2,665	$	2,505	$	2,665

Financing Receivable Credit Quality Indicators

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

	Pass		Special Mention		Substandard		Doubtful		Loss		Total
September 30, 2014	(in thousands)
Covered loans:
Commercial business:
Secured	$	38,130	$	913	$	11,441	$	—	$	—	$	50,484
Unsecured	2,316		—		91		—		—		2,407
Real estate:
One-to-four family residential	30,711		—		4,223		—		—		34,934
Commercial and multifamily residential:
Commercial land	9,913		—		6,246		—		—		16,159
Income property	54,117		3,220		7,507		—		—		64,844
Owner occupied	59,746		354		6,385		—		—		66,485
Real estate construction:
One-to-four family residential:
Land and acquisition	2,713		—		1,096		—		—		3,809
Residential construction	750		—		1,239		—		—		1,989
Commercial and multifamily residential:
Income property	1,458		—		227		—		—		1,685
Owner occupied	934		—		—		—		—		934
Consumer	26,320		—		2,971		—		—		29,291
Total	$	227,108	$	4,487	$	41,426	$	—	$	—	273,021
Less:
Valuation discount resulting from acquisition accounting											29,177
Allowance for loan losses											17,933
Covered loans, net											$	225,911

	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 nine months ended September 30, 2014 and 2013:

	Beginning Balance		Charge-offs			Recoveries		Provision (Recovery)			Ending Balance		Specific Reserve		General Allocation
Three months ended September 30, 2014	(in thousands)
Noncovered loans:
Commercial business:
Secured	$	25,519	$	(1,348	)	$	333	$	243		$	24,747	$	39	$	24,708
Unsecured	754		—			23		112			889		11		878
Real estate:
One-to-four family residential	1,083		—			63		230			1,376		124		1,252
Commercial & multifamily residential:
Commercial land	470		—			51		(124		)	397		—		397
Income property	10,511		—			83		(784		)	9,810		—		9,810
Owner occupied	4,990		(7		)	5		(193		)	4,795		31		4,764
Real estate construction:
One-to-four family residential:
Land and acquisition	403		—			3		876			1,282		68		1,214
Residential construction	677		—			18		1,103			1,798		—		1,798
Commercial & multifamily residential:
Income property	414		—			—		535			949		—		949
Owner occupied	166		—			—		168			334		—		334
Consumer	2,643		(620		)	340		502			2,865		—		2,865
Unallocated	1,864		—			—		(1,168		)	696		—		696
Total	$	49,494	$	(1,975	)	$	919	$	1,500		$	49,938	$	273	$	49,665
	Beginning Balance		Charge-offs			Recoveries		Provision (Recovery)			Ending Balance		Specific Reserve		General Allocation
Nine months ended September 30, 2014	(in thousands)
Noncovered loans:
Commercial business:
Secured	$	31,027	$	(3,188	)	$	2,216	$	(5,308	)	$	24,747	$	39	$	24,708
Unsecured	696		(110		)	342		(39		)	889		11		878
Real estate:
One-to-four family residential	1,252		(207		)	103		228			1,376		124		1,252
Commercial & multifamily residential:
Commercial land	489		(29		)	70		(133		)	397		—		397
Income property	9,234		(1,934		)	601		1,909			9,810		—		9,810
Owner occupied	3,605		(1,030		)	44		2,176			4,795		31		4,764
Real estate construction:
One-to-four family residential:
Land and acquisition	610		—			44		628			1,282		68		1,214
Residential construction	822		—			461		515			1,798		—		1,798
Commercial & multifamily residential:
Income property	285		—			—		664			949		—		949
Owner occupied	58		—			—		276			334		—		334
Consumer	2,547		(2,256		)	931		1,643			2,865		—		2,865
Unallocated	1,655		—			—		(959		)	696		—		696
Total	$	52,280	$	(8,754	)	$	4,812	$	1,600		$	49,938	$	273	$	49,665

	Beginning Balance		Charge-offs			Recoveries		Provision (Recovery)			Ending Balance		Specific Reserve		General Allocation
Three months ended September 30, 2013	(in thousands)
Noncovered loans:
Commercial business:
Secured	$	30,572	$	(392	)	$	743	$	3,187		$	34,110	$	241	$	33,869
Unsecured	821		(363		)	111		491			1,060		43		1,017
Real estate:
One-to-four family residential	672		(47		)	39		677			1,341		103		1,238
Commercial & multifamily residential:
Commercial land	691		(9		)	126		(260		)	548		—		548
Income property	9,695		(132		)	154		85			9,802		—		9,802
Owner occupied	4,515		(516		)	52		637			4,688		26		4,662
Real estate construction:
One-to-four family residential:
Land and acquisition	769		—			366		(410		)	725		73		652
Residential construction	204		—			95		426			725		—		725
Commercial & multifamily residential:
Income property	241		—			—		17			258		—		258
Owner occupied	80		—			—		(12		)	68		—		68
Consumer	2,455		(453		)	112		405			2,519		—		2,519
Unallocated	983		—			—		(983		)	—		—		—
Total	$	51,698	$	(1,912	)	$	1,798	$	4,260		$	55,844	$	486	$	55,358
	Beginning Balance		Charge-offs			Recoveries		Provision (Recovery)			Ending Balance		Specific Reserve		General Allocation
Nine months ended September 30, 2013	(in thousands)
Noncovered loans:
Commercial business:
Secured	$	27,270	$	(2,236	)	$	1,135	$	7,941		$	34,110	$	241	$	33,869
Unsecured	753		(794		)	184		917			1,060		43		1,017
Real estate:
One-to-four family residential	694		(191		)	180		658			1,341		103		1,238
Commercial & multifamily residential:
Commercial land	460		(20		)	153		(45		)	548		—		548
Income property	11,033		(950		)	260		(541		)	9,802		—		9,802
Owner occupied	6,362		(1,084		)	96		(686		)	4,688		26		4,662
Real estate construction:
One-to-four family residential:
Land and acquisition	1,171		(32		)	2,541		(2,955		)	725		73		652
Residential construction	635		(101		)	108		83			725		—		725
Commercial & multifamily residential:
Income property	316		—			—		(58		)	258		—		258
Owner occupied	102		—			—		(34		)	68		—		68
Consumer	2,437		(1,262		)	353		991			2,519		—		2,519
Unallocated	1,011		—			—		(1,011		)	—		—		—
Total	$	52,244	$	(6,670	)	$	5,010	$	5,260		$	55,844	$	486	$	55,358

Financing Receivable Credit Quality Indicators

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

	Pass		Special Mention		Substandard		Doubtful		Loss		Total
September 30, 2014	(in thousands)
Noncovered loans:
Commercial business:
Secured	$	1,678,642	$	43,841	$	35,847	$	—	$	—	$	1,758,330
Unsecured	66,261		198		243		—		—		66,702
Real estate:
One-to-four family residential	102,126		55		4,631		—		—		106,812
Commercial and multifamily residential:
Commercial land	137,651		—		2,146		—		—		139,797
Income property	1,197,040		4,468		13,016		—		—		1,214,524
Owner occupied	754,446		3,153		7,875		—		—		765,474
Real estate construction:
One-to-four family residential:
Land and acquisition	11,307		—		1,697		—		—		13,004
Residential construction	57,205		—		3,094		—		—		60,299
Commercial and multifamily residential:
Income property	85,090		—		—		—		—		85,090
Owner occupied	50,521		899		—		—		—		51,420
Consumer	313,423		—		4,303		—		—		317,726
Total	$	4,453,712	$	52,614	$	72,852	$	—	$	—	4,579,178
Less:
Allowance for loan and lease losses											49,938
Noncovered loans, net											$	4,529,240

	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