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

3 Months Ended

Mar. 31, 2016

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, 2016 and 2015:



	Beginning Balance		Charge-offs			Recoveries		Provision (Recovery)			Ending Balance		Specific Reserve		General Allocation
Three months ended March 31, 2016	(in thousands)
Commercial business:
Secured	$	32,321	$	(3,770	)	$	611	$	2,952		$	32,114	$	2,500	$	29,614
Unsecured	1,299		(3		)	51		(47		)	1,300		—		1,300
Real estate:
One-to-four family residential	916		—			41		(303		)	654		—		654
Commercial & multifamily residential:
Commercial land	1,178		—			—		84			1,262		—		1,262
Income property	6,616		—			61		725			7,402		—		7,402
Owner occupied	5,550		—			8		528			6,086		—		6,086
Real estate construction:
One-to-four family residential:
Land and acquisition	339		—			51		250			640		—		640
Residential construction	733		—			203		513			1,449		—		1,449
Commercial & multifamily residential:
Income property	388		—			1		326			715		—		715
Owner occupied	1,006		—			—		204			1,210		—		1,210
Consumer	3,531		(266		)	165		(62		)	3,368		15		3,353
Purchased credit impaired	13,726		(2,866		)	1,551		653			13,064		—		13,064
Unallocated	569		—			—		(569		)	—		—		—
Total	$	68,172	$	(6,905	)	$	2,743	$	5,254		$	69,264	$	2,515	$	66,749



	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

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,
	2016		2015
	(in thousands)
Balance at beginning of period	$	2,930	$	2,655
Net changes in the allowance for unfunded commitments and letters of credit	—		—
Balance at end of period	$	2,930	$	2,655

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, 2016 and December 31, 2015:



	Pass		Special Mention		Substandard		Doubtful		Loss		Total
March 31, 2016	(in thousands)
Loans, excluding PCI loans:
Commercial business:
Secured	$	2,185,283	$	54,957	$	63,792	$	—	$	—	$	2,304,032
Unsecured	91,737		277		562		—		—		92,576
Real estate:
One-to-four family residential	170,788		461		1,075		—		—		172,324
Commercial and multifamily residential:
Commercial land	213,936		4,804		423		—		—		219,163
Income property	1,306,718		6,394		11,351		—		—		1,324,463
Owner occupied	933,090		7,978		15,126		—		—		956,194
Real estate construction:
One-to-four family residential:
Land and acquisition	12,915		—		205		—		—		13,120
Residential construction	118,843		—		845		—		—		119,688
Commercial and multifamily residential:
Income property	86,584		—		—		—		—		86,584
Owner occupied	90,807		—		3,936		—		—		94,743
Consumer	313,249		—		7,946		—		—		321,195
Total	$	5,523,950	$	74,871	$	105,261	$	—	$	—	5,704,082
Less:
Allowance for loan and lease losses											56,200
Loans, excluding PCI loans, net											$	5,647,882



	Pass		Special Mention		Substandard		Doubtful		Loss		Total
December 31, 2015	(in thousands)
Loans, excluding PCI loans:
Commercial business:
Secured	$	2,146,729	$	59,746	$	56,217	$	—	$	—	$	2,262,692
Unsecured	93,347		278		1,323		—		—		94,948
Real estate:
One-to-four family residential	171,945		52		1,439		—		—		173,436
Commercial and multifamily residential:
Commercial land	207,768		4,966		424		—		—		213,158
Income property	1,296,043		5,889		8,847		—		—		1,310,779
Owner occupied	918,986		9,668		17,662		—		—		946,316
Real estate construction:
One-to-four family residential:
Land and acquisition	14,388		—		362		—		—		14,750
Residential construction	119,243		—		1,132		—		—		120,375
Commercial and multifamily residential:
Income property	83,634		—		—		—		—		83,634
Owner occupied	81,270		—		401		—		—		81,671
Consumer	328,286		—		4,076		—		—		332,362
Total	$	5,461,639	$	80,599	$	91,883	$	—	$	—	5,634,121
Less:
Allowance for loan and lease losses											54,446
Loans, excluding PCI loans, net											$	5,579,675

The following is an analysis of the credit quality of our PCI loan portfolio as of March 31, 2016 and December 31, 2015:



	Pass		Special Mention		Substandard		Doubtful		Loss		Total
March 31, 2016	(in thousands)
PCI loans:
Commercial business:
Secured	$	31,706	$	99	$	5,297	$	—	$	—	$	37,102
Unsecured	1,106		—		1		—		—		1,107
Real estate:
One-to-four family residential	23,766		—		2,000		—		—		25,766
Commercial and multifamily residential:
Commercial land	8,037		—		623		—		—		8,660
Income property	33,558		—		3,970		—		—		37,528
Owner occupied	52,487		—		1,709		—		—		54,196
Real estate construction:
One-to-four family residential:
Land and acquisition	1,143		—		315		—		—		1,458
Residential construction	414		—		328		—		—		742
Commercial and multifamily residential:
Income property	1,283		—		—		—		—		1,283
Owner occupied	526		—		—		—		—		526
Consumer	19,531		—		695		—		—		20,226
Total	$	173,557	$	99	$	14,938	$	—	$	—	188,594
Less:
Valuation discount resulting from acquisition accounting											15,393
Allowance for loan losses											13,064
PCI loans, net											$	160,137



	Pass		Special Mention		Substandard		Doubtful		Loss		Total
December 31, 2015	(in thousands)
PCI loans:
Commercial business:
Secured	$	31,468	$	101	$	5,995	$	—	$	—	$	37,564
Unsecured	1,218		—		2		—		—		1,220
Real estate:
One-to-four family residential	25,018		—		2,177		—		—		27,195
Commercial and multifamily residential:
Commercial land	8,234		—		664		—		—		8,898
Income property	36,426		—		5,916		—		—		42,342
Owner occupied	53,071		261		1,736		—		—		55,068
Real estate construction:
One-to-four family residential:
Land and acquisition	1,086		—		479		—		—		1,565
Residential construction	427		—		334		—		—		761
Commercial and multifamily residential:
Income property	1,303		—		—		—		—		1,303
Owner occupied	531		—		—		—		—		531
Consumer	20,122		—		781		—		—		20,903
Total	$	178,904	$	362	$	18,084	$	—	$	—	197,350
Less:
Valuation discount resulting from acquisition accounting											16,444
Allowance for loan losses											13,726
PCI loans, net											$	167,180