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

9 Months Ended

Sep. 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 nine months ended September 30, 2015 and 2014:

	Beginning Balance		Charge-offs			Recoveries		Provision (Recovery)			Ending Balance		Specific Reserve		General Allocation
Three months ended September 30, 2015	(in thousands)
Commercial business:
Secured	$	27,708	$	(2,439	)	$	530	$	5,189		$	30,988	$	1,020	$	29,968
Unsecured	857		(131		)	93		471			1,290		—		1,290
Real estate:
One-to-four family residential	1,355		—			261		(420		)	1,196		84		1,112
Commercial & multifamily residential:
Commercial land	1,581		—			130		123			1,834		—		1,834
Income property	8,197		(83		)	273		22			8,409		—		8,409
Owner occupied	5,801		(115		)	14		473			6,173		17		6,156
Real estate construction:
One-to-four family residential:
Land and acquisition	497		—			98		(206		)	389		64		325
Residential construction	958		—			7		(250		)	715		—		715
Commercial & multifamily residential:
Income property	407		—			2		(68		)	341		—		341
Owner occupied	441		—			—		(31		)	410		—		410
Consumer	3,182		(311		)	297		49			3,217		14		3,203
Purchased credit impaired	16,174		(3,198		)	1,533		(519		)	13,990		—		13,990
Unallocated	2,099		—			—		(2,002		)	97		—		97
Total	$	69,257	$	(6,277	)	$	3,238	$	2,831		$	69,049	$	1,199	$	67,850
	Beginning Balance		Charge-offs			Recoveries		Provision (Recovery)			Ending Balance		Specific Reserve		General Allocation
Nine months ended September 30, 2015	(in thousands)
Commercial business:
Secured	$	25,923	$	(5,847	)	$	1,242	$	9,670		$	30,988	$	1,020	$	29,968
Unsecured	927		(235		)	208		390			1,290		—		1,290
Real estate:
One-to-four family residential	2,281		(297		)	288		(1,076		)	1,196		84		1,112
Commercial & multifamily residential:
Commercial land	799		—			130		905			1,834		—		1,834
Income property	9,159		(126		)	3,532		(4,156		)	8,409		—		8,409
Owner occupied	5,007		(115		)	36		1,245			6,173		17		6,156
Real estate construction:
One-to-four family residential:
Land and acquisition	1,197		—			101		(909		)	389		64		325
Residential construction	1,860		—			40		(1,185		)	715		—		715
Commercial & multifamily residential:
Income property	622		—			7		(288		)	341		—		341
Owner occupied	434		—			—		(24		)	410		—		410
Consumer	3,180		(1,521		)	707		851			3,217		14		3,203
Purchased credit impaired	16,336		(10,174		)	5,262		2,566			13,990		—		13,990
Unallocated	1,844		—			—		(1,747		)	97		—		97
Total	$	69,569	$	(18,315	)	$	11,553	$	6,242		$	69,049	$	1,199	$	67,850

	Beginning Balance		Charge-offs			Recoveries		Provision (Recovery)			Ending Balance		Specific Reserve		General Allocation
Three months ended September 30, 2014	(in thousands)
Commercial business:
Secured	$	25,519	$	(1,348	)	$	333	$	243		$	24,747	$	39	$	24,708
Unsecured	754		—			23		112			889		11		878
Real estate:
One-to-four family residential	1,083		—			63		230			1,376		124		1,252
Commercial & multifamily residential:
Commercial land	470		—			51		(124		)	397		—		397
Income property	10,511		—			83		(784		)	9,810		—		9,810
Owner occupied	4,990		(7		)	5		(193		)	4,795		31		4,764
Real estate construction:
One-to-four family residential:
Land and acquisition	403		—			3		876			1,282		68		1,214
Residential construction	677		—			18		1,103			1,798		—		1,798
Commercial & multifamily residential:
Income property	414		—			—		535			949		—		949
Owner occupied	166		—			—		168			334		—		334
Consumer	2,643		(620		)	340		502			2,865		—		2,865
Purchased credit impaired	19,801		(3,236		)	1,888		(520		)	17,933		—		17,933
Unallocated	1,864		—			—		(1,168		)	696		—		696
Total	$	69,295	$	(5,211	)	$	2,807	$	980		$	67,871	$	273	$	67,598
	Beginning Balance		Charge-offs			Recoveries		Provision (Recovery)			Ending Balance		Specific Reserve		General Allocation
Nine months ended September 30, 2014	(in thousands)
Commercial business:
Secured	$	31,027	$	(3,188	)	$	2,216	$	(5,308	)	$	24,747	$	39	$	24,708
Unsecured	696		(110		)	342		(39		)	889		11		878
Real estate:
One-to-four family residential	1,252		(207		)	103		228			1,376		124		1,252
Commercial & multifamily residential:
Commercial land	489		(29		)	70		(133		)	397		—		397
Income property	9,234		(1,934		)	601		1,909			9,810		—		9,810
Owner occupied	3,605		(1,030		)	44		2,176			4,795		31		4,764
Real estate construction:
One-to-four family residential:
Land and acquisition	610		—			44		628			1,282		68		1,214
Residential construction	822		—			461		515			1,798		—		1,798
Commercial & multifamily residential:
Income property	285		—			—		664			949		—		949
Owner occupied	58		—			—		276			334		—		334
Consumer	2,547		(2,256		)	931		1,643			2,865		—		2,865
Purchased credit impaired	20,174		(11,350		)	5,690		3,419			17,933		—		17,933
Unallocated	1,655		—			—		(959		)	696		—		696
Total	$	72,454	$	(20,104	)	$	10,502	$	5,019		$	67,871	$	273	$	67,598

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

Financing Receivable Credit Quality Indicators

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

	Pass		Special Mention		Substandard		Doubtful		Loss		Total
September 30, 2015	(in thousands)
Loans, excluding PCI loans:
Commercial business:
Secured	$	2,162,946	$	48,884	$	54,138	$	—	$	—	$	2,265,968
Unsecured	81,902		17		1,820		—		—		83,739
Real estate:
One-to-four family residential	170,685		53		3,379		—		—		174,117
Commercial and multifamily residential:
Commercial land	200,404		6,850		1,158		—		—		208,412
Income property	1,307,536		6,580		8,348		—		—		1,322,464
Owner occupied	870,085		7,363		18,866		—		—		896,314
Real estate construction:
One-to-four family residential:
Land and acquisition	14,379		—		156		—		—		14,535
Residential construction	120,011		—		1,296		—		—		121,307
Commercial and multifamily residential:
Income property	63,182		—		—		—		—		63,182
Owner occupied	68,371		—		872		—		—		69,243
Consumer	333,721		—		2,443		—		—		336,164
Total	$	5,393,222	$	69,747	$	92,476	$	—	$	—	5,555,445
Less:
Allowance for loan and lease losses											55,059
Loans, excluding PCI loans, net											$	5,500,386

	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 September 30, 2015 and December 31, 2014:

	Pass		Special Mention		Substandard		Doubtful		Loss		Total
September 30, 2015	(in thousands)
PCI loans:
Commercial business:
Secured	$	34,524	$	198	$	8,070	$	—	$	—	$	42,792
Unsecured	1,422		—		20		—		—		1,442
Real estate:
One-to-four family residential	25,581		—		2,994		—		—		28,575
Commercial and multifamily residential:
Commercial land	8,711		—		665		—		—		9,376
Income property	39,457		—		7,007		—		—		46,464
Owner occupied	51,073		—		1,982		—		—		53,055
Real estate construction:
One-to-four family residential:
Land and acquisition	1,168		—		500		—		—		1,668
Residential construction	767		—		12		—		—		779
Commercial and multifamily residential:
Income property	1,322		—		—		—		—		1,322
Owner occupied	903		—		—		—		—		903
Consumer	21,369		—		1,108		—		—		22,477
Total	$	186,297	$	198	$	22,358	$	—	$	—	208,853
Less:
Valuation discount resulting from acquisition accounting											17,787
Allowance for loan losses											13,990
PCI loans, net											$	177,076

	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