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

3 Months Ended

Mar. 31, 2015

Financing Receivable, Allowance for Credit Losses [Line Items]

Allowance for Credit Losses on Financing Receivables

The following tables show a detailed analysis of the ALLL for the three months ended March 31, 2015 and 2014:

	Beginning Balance		Charge-offs			Recoveries		Provision (Recovery)			Ending Balance		Specific Reserve		General Allocation
Three months ended March 31, 2015	(in thousands)
Commercial business:
Secured	$	25,923	$	(1,386	)	$	512	$	712		$	25,761	$	24	$	25,737
Unsecured	927		(40		)	106		19			1,012		—		1,012
Real estate:
One-to-four family residential	2,281		(8		)	12		(921		)	1,364		115		1,249
Commercial & multifamily residential:
Commercial land	799		—			—		28			827		—		827
Income property	9,159		—			3,252		(3,971		)	8,440		—		8,440
Owner occupied	5,007		—			9		596			5,612		24		5,588
Real estate construction:
One-to-four family residential:
Land and acquisition	1,197		—			2		(173		)	1,026		67		959
Residential construction	1,860		—			26		(96		)	1,790		—		1,790
Commercial & multifamily residential:
Income property	622		—			3		202			827		—		827
Owner occupied	434		—			—		65			499		—		499
Consumer	3,180		(891		)	273		273			2,835		—		2,835
Purchased credit impaired	16,336		(4,100		)	1,686		2,609			16,531		—		16,531
Unallocated	1,844		—			—		1,866			3,710		—		3,710
Total	$	69,569	$	(6,425	)	$	5,881	$	1,209		$	70,234	$	230	$	70,004

	Beginning Balance		Charge-offs			Recoveries		Provision (Recovery)			Ending Balance		Specific Reserve		General Allocation
Three months ended March 31, 2014	(in thousands)
Commercial business:
Secured	$	31,027	$	(198	)	$	448	$	(2,476	)	$	28,801	$	1,521	$	27,280
Unsecured	696		(35		)	42		43			746		27		719
Real estate:
One-to-four family residential	1,252		(207		)	28		121			1,194		133		1,061
Commercial & multifamily residential:
Commercial land	489		—			17		73			579		—		579
Income property	9,234		—			13		860			10,107		—		10,107
Owner occupied	3,605		(1,023		)	9		1,969			4,560		38		4,522
Real estate construction:
One-to-four family residential:
Land and acquisition	610		—			39		(69		)	580		71		509
Residential construction	822		—			3		(129		)	696		—		696
Commercial & multifamily residential:
Income property	285		—			—		35			320		—		320
Owner occupied	58		—			—		96			154		—		154
Consumer	2,547		(727		)	253		564			2,637		3		2,634
Purchased credit impaired	20,174		(4,273		)	1,806		2,422			20,129		—		20,129
Unallocated	1,655		—			—		(1,587		)	68		—		68
Total	$	72,454	$	(6,463	)	$	2,658	$	1,922		$	70,571	$	1,793	$	68,778

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
	March 31,
	2015		2014
	(in thousands)
Balance at beginning of period	$	2,655	$	2,505
Net changes in the allowance for unfunded commitments and letters of credit	—		(50		)
Balance at end of period	$	2,655	$	2,455

Financing Receivable Credit Quality Indicators

The following is an analysis of the credit quality of our loan portfolio, excluding PCI loans, as of March 31, 2015 and December 31, 2014:

	Pass		Special Mention		Substandard		Doubtful		Loss		Total
March 31, 2015	(in thousands)
Loans, excluding PCI loans:
Commercial business:
Secured	$	1,995,680	$	19,210	$	40,469	$	—	$	—	$	2,055,359
Unsecured	78,498		—		721		—		—		79,219
Real estate:
One-to-four family residential	162,448		1,465		6,394		—		—		170,307
Commercial and multifamily residential:
Commercial land	187,519		3,459		2,464		—		—		193,442
Income property	1,301,779		3,517		4,248		—		—		1,309,544
Owner occupied	828,244		1,757		16,186		—		—		846,187
Real estate construction:
One-to-four family residential:
Land and acquisition	16,180		166		452		—		—		16,798
Residential construction	103,257		680		1,708		—		—		105,645
Commercial and multifamily residential:
Income property	62,958		—		—		—		—		62,958
Owner occupied	54,563		—		876		—		—		55,439
Consumer	331,413		—		4,745		—		—		336,158
Total	$	5,122,539	$	30,254	$	78,263	$	—	$	—	5,231,056
Less:
Allowance for loan and lease losses											53,703
Loans, excluding PCI loans, net											$	5,177,353

	Pass		Special Mention		Substandard		Doubtful		Loss		Total
December 31, 2014	(in thousands)
Loans, excluding PCI loans:
Commercial business:
Secured	$	1,963,210	$	15,790	$	54,628	$	—	$	—	$	2,033,628
Unsecured	79,534		—		559		—		—		80,093
Real estate:
One-to-four family residential	163,914		55		7,795		—		—		171,764
Commercial and multifamily residential:
Commercial land	183,701		4,217		1,861		—		—		189,779
Income property	1,287,729		5,885		8,385		—		—		1,301,999
Owner occupied	825,694		7,876		11,171		—		—		844,741
Real estate construction:
One-to-four family residential:
Land and acquisition	15,307		167		1,036		—		—		16,510
Residential construction	96,031		909		1,581		—		—		98,521
Commercial and multifamily residential:
Income property	73,783		—		—		—		—		73,783
Owner occupied	58,055		—		889		—		—		58,944
Consumer	339,695		68		5,269		—		—		345,032
Total	$	5,086,653	$	34,967	$	93,174	$	—	$	—	5,214,794
Less:
Allowance for loan and lease losses											53,233
Loans, excluding PCI loans, net											$	5,161,561

The following is an analysis of the credit quality of our PCI loan portfolio as of March 31, 2015 and December 31, 2014:

	Pass		Special Mention		Substandard		Doubtful		Loss		Total
March 31, 2015	(in thousands)
PCI loans:
Commercial business:
Secured	$	39,919	$	1,040	$	9,060	$	—	$	—	$	50,019
Unsecured	2,057		—		39		—		—		2,096
Real estate:
One-to-four family residential	27,881		—		3,246		—		—		31,127
Commercial and multifamily residential:
Commercial land	8,739		—		1,668		—		—		10,407
Income property	45,298		—		12,031		—		—		57,329
Owner occupied	56,004		336		3,876		—		—		60,216
Real estate construction:
One-to-four family residential:
Land and acquisition	1,452		—		894		—		—		2,346
Residential construction	732		—		948		—		—		1,680
Commercial and multifamily residential:
Income property	1,359		—		224		—		—		1,583
Owner occupied	918		—		—		—		—		918
Consumer	23,431		—		1,959		—		—		25,390
Total	$	207,790	$	1,376	$	33,945	$	—	$	—	243,111
Less:
Valuation discount resulting from acquisition accounting											23,272
Allowance for loan losses											16,531
PCI loans, net											$	203,308

	Pass		Special Mention		Substandard		Doubtful		Loss		Total
December 31, 2014	(in thousands)
PCI loans:
Commercial business:
Secured	$	37,927	$	937	$	9,223	$	—	$	—	$	48,087
Unsecured	2,156		—		91		—		—		2,247
Real estate:
One-to-four family residential	28,822		—		3,159		—		—		31,981
Commercial and multifamily residential:
Commercial land	9,104		—		6,240		—		—		15,344
Income property	51,435		1,892		7,186		—		—		60,513
Owner occupied	58,629		346		5,566		—		—		64,541
Real estate construction:
One-to-four family residential:
Land and acquisition	1,595		—		913		—		—		2,508
Residential construction	741		—		1,104		—		—		1,845
Commercial and multifamily residential:
Income property	1,435		—		227		—		—		1,662
Owner occupied	926		—		—		—		—		926
Consumer	24,037		—		2,777		—		—		26,814
Total	$	216,807	$	3,175	$	36,486	$	—	$	—	256,468
Less:
Valuation discount resulting from acquisition accounting											25,884
Allowance for loan losses											16,336
PCI loans, net											$	214,248