Covered Assets and FDIC Loss-sharing Asset (Tables)
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9 Months Ended |
Sep. 30, 2014
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Covered Assets And FDIC Loss Sharing Asset [Line Items] |
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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 |
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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 |
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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 |
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | 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 |
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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 |
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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 |
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Covered Loans [Member]
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Covered Assets And FDIC Loss Sharing Asset [Line Items] |
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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 |
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