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