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Covered Assets and FDIC Loss-sharing Asset (Tables)
9 Months Ended
Sep. 30, 2014
Covered Assets And FDIC Loss Sharing Asset [Line Items]  
Analysis and Allowance for Losses on Covered Loans
The following is an analysis of our covered loans, net of related allowance for losses as of September 30, 2014 and December 31, 2013:
 
 
September 30, 2014
 
December 31, 2013
Covered loans:
 
(in thousands)
Commercial business
 
$
52,891

 
$
72,870

Real estate:
 
 
 
 
One-to-four family residential
 
34,934

 
41,642

Commercial and multifamily residential
 
147,488

 
170,879

Total real estate
 
182,422

 
212,521

Real estate construction:
 
 
 
 
One-to-four family residential
 
5,798

 
14,781

Commercial and multifamily residential
 
2,619

 
6,869

Total real estate construction
 
8,417

 
21,650

Consumer
 
29,291

 
34,101

Subtotal of covered loans
 
273,021

 
341,142

Less:
 
 
 
 
Valuation discount resulting from acquisition accounting
 
29,177

 
43,297

Allowance for loan losses
 
17,933

 
20,174

Covered loans, net of allowance for loan losses
 
$
225,911

 
$
277,671

Changes in Accretable Yield for Acquired Loans
The following table shows the changes in accretable yield for acquired impaired loans for the three and nine months ended September 30, 2014 and 2013:
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
2014
 
2013
 
2014
 
2013
 
 
(in thousands)
Balance at beginning of period
 
$
92,511

 
$
140,511

 
$
103,907

 
$
166,888

Accretion
 
(8,034
)
 
(12,243
)
 
(28,658
)
 
(40,240
)
Disposals
 
(357
)
 
(5,772
)
 
(3,183
)
 
(621
)
Reclassifications (to) from nonaccretable difference
 
(3,589
)
 
(3,013
)
 
8,465

 
(6,544
)
Balance at end of period
 
$
80,531

 
$
119,483

 
$
80,531

 
$
119,483

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

Covered OREO at Carrying Value
The following table sets forth activity in covered OREO at carrying value for the three and nine months ended September 30, 2014 and 2013:
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
2014
 
2013
 
2014
 
2013
 
 
(in thousands)
Covered OREO:
 
 
 
 
 
 
 
 
Balance at beginning of period
 
$
13,051

 
$
12,854

 
$
12,093

 
$
16,311

Transfers in
 
614

 
3,559

 
6,121

 
8,089

Write-downs
 
(37
)
 
(199
)
 
(1,025
)
 
(293
)
Proceeds from sale of OREO property
 
(2,526
)
 
(5,408
)
 
(8,161
)
 
(19,222
)
Net gain on sale of OREO
 
487

 
1,924

 
2,561

 
7,845

Total covered OREO at end of period
 
$
11,589

 
$
12,730

 
$
11,589

 
$
12,730

FDIC Loss-sharing Asset
The following table shows a detailed analysis of the FDIC loss-sharing asset for the three and nine months ended September 30, 2014 and 2013:
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
2014
 
2013
 
2014
 
2013
 
 
(in thousands)
Balance at beginning of period
 
$
27,981

 
$
67,374

 
$
39,846

 
$
96,354

Adjustments not reflected in income:
 
 
 
 
 
 
 
 
Cash payments to (from) the FDIC
 
541

 
(1,484
)
 
(1,223
)
 
(7,871
)
FDIC reimbursable losses (recoveries), net
 
(214
)
 
(505
)
 
(446
)
 
522

Adjustments reflected in income:
 
 
 
 
 
 
 
 
Amortization, net
 
(3,992
)
 
(9,890
)
 
(16,208
)
 
(29,470
)
Loan impairment (recapture)
 
(416
)
 
(758
)
 
2,735

 
(1,343
)
Sale of other real estate
 
(383
)
 
(1,479
)
 
(2,104
)
 
(5,076
)
Write-downs of other real estate
 
67

 
220

 
860

 
373

Other
 
(92
)
 
81

 
32

 
70

Balance at end of period
 
$
23,492

 
$
53,559

 
$
23,492

 
$
53,559

Covered Loans [Member]
 
Covered Assets And FDIC Loss Sharing Asset [Line Items]  
Allowance for Credit Losses on Financing Receivables
The changes in the ALLL for covered loans for the three and nine months ended September 30, 2014 and 2013 are summarized as follows:
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
2014
 
2013
 
2014
 
2013
 
 
(in thousands)
Balance at beginning of period
 
$
19,801

 
$
26,135

 
$
20,174

 
$
30,056

Loans charged off
 
(3,236
)
 
(5,006
)
 
(11,350
)
 
(10,031
)
Recoveries
 
1,888

 
2,555

 
5,690

 
4,391

Provision (recapture) for loan losses
 
(520
)
 
(947
)
 
3,419

 
(1,679
)
Balance at end of period
 
$
17,933

 
$
22,737

 
$
17,933

 
$
22,737