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

6 Months Ended

Jun. 30, 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 and six months ended June 30, 2015 and 2014:

	Beginning Balance		Charge-offs			Recoveries		Provision (Recovery)			Ending Balance		Specific Reserve		General Allocation
Three months ended June 30, 2015	(in thousands)
Commercial business:
Secured	$	25,761	$	(2,022	)	$	200	$	3,769		$	27,708	$	1,161	$	26,547
Unsecured	1,012		(64		)	9		(100		)	857		—		857
Real estate:
One-to-four family residential	1,364		(289		)	15		265			1,355		111		1,244
Commercial & multifamily residential:
Commercial land	827		—			—		754			1,581		—		1,581
Income property	8,440		(43		)	7		(207		)	8,197		—		8,197
Owner occupied	5,612		—			13		176			5,801		20		5,781
Real estate construction:
One-to-four family residential:
Land and acquisition	1,026		—			1		(530		)	497		66		431
Residential construction	1,790		—			7		(839		)	958		—		958
Commercial & multifamily residential:
Income property	827		—			2		(422		)	407		—		407
Owner occupied	499		—			—		(58		)	441		—		441
Consumer	2,835		(319		)	137		529			3,182		—		3,182
Purchased credit impaired	16,531		(2,876		)	2,043		476			16,174		—		16,174
Unallocated	3,710		—			—		(1,611		)	2,099		—		2,099
Total	$	70,234	$	(5,613	)	$	2,434	$	2,202		$	69,257	$	1,358	$	67,899
	Beginning Balance		Charge-offs			Recoveries		Provision (Recovery)			Ending Balance		Specific Reserve		General Allocation
Six months ended June 30, 2015	(in thousands)
Commercial business:
Secured	$	25,923	$	(3,408	)	$	712	$	4,481		$	27,708	$	1,161	$	26,547
Unsecured	927		(104		)	115		(81		)	857		—		857
Real estate:
One-to-four family residential	2,281		(297		)	27		(656		)	1,355		111		1,244
Commercial & multifamily residential:
Commercial land	799		—			—		782			1,581		—		1,581
Income property	9,159		(43		)	3,259		(4,178		)	8,197		—		8,197
Owner occupied	5,007		—			22		772			5,801		20		5,781
Real estate construction:
One-to-four family residential:
Land and acquisition	1,197		—			3		(703		)	497		66		431
Residential construction	1,860		—			33		(935		)	958		—		958
Commercial & multifamily residential:
Income property	622		—			5		(220		)	407		—		407
Owner occupied	434		—			—		7			441		—		441
Consumer	3,180		(1,210		)	410		802			3,182		—		3,182
Purchased credit impaired	16,336		(6,976		)	3,729		3,085			16,174		—		16,174
Unallocated	1,844		—			—		255			2,099		—		2,099
Total	$	69,569	$	(12,038	)	$	8,315	$	3,411		$	69,257	$	1,358	$	67,899

	Beginning Balance		Charge-offs			Recoveries		Provision (Recovery)			Ending Balance		Specific Reserve		General Allocation
Three months ended June 30, 2014	(in thousands)
Commercial business:
Secured	$	28,801	$	(1,642	)	$	1,435	$	(3,077	)	$	25,517	$	128	$	25,389
Unsecured	746		(75		)	277		(194		)	754		19		735
Real estate:
One-to-four family residential	1,194		—			12		(123		)	1,083		128		955
Commercial & multifamily residential:
Commercial land	579		(29		)	2		(82		)	470		—		470
Income property	10,107		(1,934		)	505		1,833			10,511		—		10,511
Owner occupied	4,560		—			30		399			4,989		35		4,954
Real estate construction:
One-to-four family residential:
Land and acquisition	580		—			2		(179		)	403		69		334
Residential construction	696		—			440		(459		)	677		—		677
Commercial & multifamily residential:
Income property	320		—			—		94			414		—		414
Owner occupied	154		—			—		12			166		—		166
Consumer	2,637		(909		)	338		577			2,643		1		2,642
Purchased credit impaired	20,129		(3,842		)	1,997		1,517			19,801		—		19,801
Unallocated	68		—			—		1,799			1,867		—		1,867
Total	$	70,571	$	(8,431	)	$	5,038	$	2,117		$	69,295	$	380	$	68,915
	Beginning Balance		Charge-offs			Recoveries		Provision (Recovery)			Ending Balance		Specific Reserve		General Allocation
Six months ended June 30, 2014	(in thousands)
Commercial business:
Secured	$	31,027	$	(1,840	)	$	1,883	$	(5,553	)	$	25,517	$	128	$	25,389
Unsecured	696		(110		)	319		(151		)	754		19		735
Real estate:
One-to-four family residential	1,252		(207		)	40		(2		)	1,083		128		955
Commercial & multifamily residential:
Commercial land	489		(29		)	19		(9		)	470		—		470
Income property	9,234		(1,934		)	518		2,693			10,511		—		10,511
Owner occupied	3,605		(1,023		)	39		2,368			4,989		35		4,954
Real estate construction:
One-to-four family residential:
Land and acquisition	610		—			41		(248		)	403		69		334
Residential construction	822		—			443		(588		)	677		—		677
Commercial & multifamily residential:
Income property	285		—			—		129			414		—		414
Owner occupied	58		—			—		108			166		—		166
Consumer	2,547		(1,636		)	591		1,141			2,643		1		2,642
Purchased credit impaired	20,174		(8,115		)	3,803		3,939			19,801		—		19,801
Unallocated	1,655		—			—		212			1,867		—		1,867
Total	$	72,454	$	(14,894	)	$	7,696	$	4,039		$	69,295	$	380	$	68,915

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					Six Months Ended
	June 30,					June 30,
	2015		2014			2015		2014
	(in thousands)
Balance at beginning of period	$	2,655	$	2,455		$	2,655	$	2,505
Net changes in the allowance for unfunded commitments and letters of credit	275		(100		)	275		(150		)
Balance at end of period	$	2,930	$	2,355		$	2,930	$	2,355

Financing Receivable Credit Quality Indicators

The following is an analysis of the credit quality of our loan portfolio, excluding PCI loans, as of June 30, 2015 and December 31, 2014:

	Pass		Special Mention		Substandard		Doubtful		Loss		Total
June 30, 2015	(in thousands)
Loans, excluding PCI loans:
Commercial business:
Secured	$	2,082,480	$	34,027	$	51,919	$	—	$	—	$	2,168,426
Unsecured	81,667		46		511		—		—		82,224
Real estate:
One-to-four family residential	172,318		53		6,242		—		—		178,613
Commercial and multifamily residential:
Commercial land	200,614		6,919		1,740		—		—		209,273
Income property	1,301,846		4,995		7,047		—		—		1,313,888
Owner occupied	833,120		8,570		17,911		—		—		859,601
Real estate construction:
One-to-four family residential:
Land and acquisition	16,374		—		443		—		—		16,817
Residential construction	107,752		—		1,360		—		—		109,112
Commercial and multifamily residential:
Income property	64,557		—		—		—		—		64,557
Owner occupied	62,148		—		874		—		—		63,022
Consumer	340,250		—		3,747		—		—		343,997
Total	$	5,263,126	$	54,610	$	91,794	$	—	$	—	5,409,530
Less:
Allowance for loan and lease losses											53,083
Loans, excluding PCI loans, net											$	5,356,447

	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 June 30, 2015 and December 31, 2014:

	Pass		Special Mention		Substandard		Doubtful		Loss		Total
June 30, 2015	(in thousands)
PCI loans:
Commercial business:
Secured	$	36,179	$	212	$	8,147	$	—	$	—	$	44,538
Unsecured	1,360		—		36		—		—		1,396
Real estate:
One-to-four family residential	26,797		—		3,063		—		—		29,860
Commercial and multifamily residential:
Commercial land	8,799		—		664		—		—		9,463
Income property	41,517		—		9,678		—		—		51,195
Owner occupied	52,908		—		3,426		—		—		56,334
Real estate construction:
One-to-four family residential:
Land and acquisition	1,261		—		537		—		—		1,798
Residential construction	1,226		—		16		—		—		1,242
Commercial and multifamily residential:
Income property	1,340		—		—		—		—		1,340
Owner occupied	909		—		—		—		—		909
Consumer	23,023		—		1,404		—		—		24,427
Total	$	195,319	$	212	$	26,971	$	—	$	—	222,502
Less:
Valuation discount resulting from acquisition accounting											20,135
Allowance for loan losses											16,174
PCI loans, net											$	186,193

	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