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Loans Receivable and Allowance for Loan Losses (Tables)
 12 Months Ended
Dec. 31, 2013
Receivables [Abstract]  
Summary of Loans Receivable by Major Category
The following is a summary of loans by major category at December 31, 2013 and 2012:

 
December 31, 2013
 
December 31, 2012
 
(In thousands)
Loan portfolio composition
 
 
 
Real estate loans:
 
 
 
Residential
$
10,039

 
$
9,247

Commercial & industrial
3,821,163

 
3,100,466

Construction
72,856

 
65,045

Total real estate loans
3,904,058

 
3,174,758

Commercial business
949,093

 
921,556

Trade finance
124,685

 
152,070

Consumer and other
98,507

 
49,954

Total loans outstanding
5,076,343

 
4,298,338

Less: deferred loan fees
(2,168
)
 
(2,086
)
Gross loans receivable
5,074,175

 
4,296,252

Less: allowance for loan losses
(67,320
)
 
(66,941
)
Loans receivable, net
$
5,006,855

 
$
4,229,311
Loans and Leases Acquired, Accretable Yield Movement Schedule
The following table presents changes in the accretable discount on the ACILs for the years ended December 31, 2013 and 2012:
 
Year Ended December 31,
 
2013
 
2012
Balance at beginning of period
$
18,652

 
$
31,999

Additions due to mergers and acquisitions
19,873

 
—

Accretion
(15,590
)
 
(14,135
)
Changes in expected cash flows
24,463

 
788

Balance at end of period
$
47,398

 
$
18,652
Allowance for Loan Losses by Portfolio Segment
The following tables detail the activity in the allowance for loan losses by portfolio segment for the year ended December 31, 2013 and 2012:
 
 
Legacy
 
Acquired
 
Total
 
Real Estate
 
Commercial Business
 
Trade Finance
 
Consumer and Other
 
Real Estate
 
Commercial Business
 
Trade Finance
 
Consumer and Other
 
 
(In thousands)
December 31, 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
$
39,040

 
$
20,681

 
$
1,786

 
$
445

 
$
—

 
$
—

 
$
—

 
$
—

 
$
61,952

Provision for loan losses
7,098

 
3,700

 
403

 
673

 
4,824

 
1,903

 
303

 
200

 
19,104

Loans charged off
(6,770
)
 
(9,406
)
 
—

 
(568
)
 
(411
)
 
(945
)
 
(300
)
 
(380
)
 
(18,780
)
Recoveries of charged offs
2,137

 
1,515

 
160

 
108

 
305

 
157

 
—

 
283

 
4,665

Balance, end of period
$
41,505

 
$
16,490

 
$
2,349

 
$
658

 
$
4,718

 
$
1,115

 
$
3

 
$
103

 
$
66,941

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
41,505

 
16,490

 
2,349

 
658

 
4,718

 
1,115

 
3

 
103

 
66,941

Provision (credit) for loan losses
665

 
2,491

 
7,517

 
169

 
7,880

 
1,319

 
(3
)
 
(38
)
 
20,000

Loans charged off
(2,406
)
 
(4,022
)
 
(7,213
)
 
(524
)
 
(6,123
)
 
(1,738
)
 
—

 
(43
)
 
(22,069
)
Recoveries of charged offs
304

 
1,837

 
—

 
158

 
7

 
100

 
—

 
42

 
2,448

Balance, end of period
$
40,068

 
$
16,796

 
$
2,653

 
$
461

 
$
6,482

 
$
796

 
$
—

 
$
64

 
$
67,320


The following tables disaggregate the allowance for loan losses and the carrying value of loans receivables by impairment methodology at December 31, 2013 and December 31, 2012:

 
December 31, 2013
 
Legacy
 
Acquired
 
Total
 
Real Estate
 
Commercial Business
 
Trade Finance
 
Consumer and Other
 
Real Estate
 
Commercial Business
 
Trade Finance
 
Consumer and Other
 
 
(In thousands)
Allowance for loan losses:
Individually evaluated for impairment
$
5,578

 
$
5,183

 
$
159

 
$
32

 
$
1,092

 
$
622

 
$
—

 
$
—

 
$
12,666

Collectively evaluated for impairment
34,490

 
11,613

 
2,494

 
429

 
612

 
174

 
—

 
64

 
49,876

Loans acquired with credit deterioration
—

 
—

 
—

 
—

 
4,778

 
—

 
—

 
—

 
4,778

Total
$
40,068

 
$
16,796

 
$
2,653

 
$
461

 
$
6,482

 
$
796

 
$
—

 
$
64

 
$
67,320

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans outstanding:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
49,177

 
$
37,314

 
$
5,692

 
$
535

 
$
19,992

 
$
2,792

 
$
—

 
$
767

 
$
116,269

Collectively evaluated for impairment
3,076,924

 
778,350

 
117,249

 
32,421

 
613,696

 
84,325

 
—

 
31,802

 
4,734,767

Loans acquired with credit deterioration
—

 
—

 
—

 
—

 
144,269

 
46,312

 
1,744

 
32,982

 
225,307

Total
$
3,126,101

 
$
815,664

 
$
122,941

 
$
32,956

 
$
777,957

 
$
133,429

 
$
1,744

 
$
65,551

 
$
5,076,343


 
December 31, 2012
 
Legacy
 
Acquired
 
Total
 
Real Estate
 
Commercial Business
 
Trade Finance
 
Consumer and Other
 
Real Estate
 
Commercial Business
 
Trade Finance
 
Consumer and Other
 
 
(In thousands)
Allowance for loan losses:
Individually evaluated for impairment
$
4,723

 
$
3,084

 
$
96

 
$
—

 
$
183

 
$
1,074

 
$
—

 
$
—

 
$
9,160

Collectively evaluated for impairment
36,782

 
13,406

 
2,253

 
658

 
—

 
41

 
3

 
103

 
53,246

Loans acquired with credit deterioration
—

 
—

 
—

 
—

 
4,535

 
—

 
—

 
—

 
4,535

Total
$
41,505

 
$
16,490

 
$
2,349

 
$
658

 
$
4,718

 
$
1,115

 
$
3

 
$
103

 
$
66,941

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans outstanding:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
37,394

 
$
23,951

 
$
6,199

 
$
536

 
$
17,951

 
$
3,323

 
$
—

 
$
802

 
$
90,156

Collectively evaluated for impairment
2,387,080

 
729,904

 
144,173

 
27,284

 
628,449

 
114,621

 
242

 
18,257

 
4,050,010

Loans acquired with credit deterioration
—

 
—

 
—

 
—

 
103,884

 
49,757

 
1,456

 
3,075

 
158,172

Total
$
2,424,474

 
$
753,855

 
$
150,372

 
$
27,820

 
$
750,284

 
$
167,701

 
$
1,698

 
$
22,134

 
$
4,298,338
Impaired Financing Receivables
The following tables detail impaired loans (Legacy and Acquired) by portfolio segment as of December 31, 2013 and December 31, 2012 and for the years ended December 31, 2013 and 2012. Loans with no related allowance for loan losses are believed by management to have adequate collateral securing their carrying value.
 
 
 
As of December 31, 2013
 
For the year ended December 31, 2013
Total Impaired Loans
 
Recorded Investment*
 
Unpaid Contractual Principal Balance
 
Related
Allowance
 
Average
Recorded Investment*
 
Interest Income Recognized during Impairment
 
 
(In thousands)
With Related Allowance:
 
 
 
 
 
 
 
 
 
 
Real Estate—Residential
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Real Estate—Commercial
 
 
 
 
 
 
 
 
 
 
Retail
 
7,318

 
7,451

 
827

 
7,783

 
181

Hotel & Motel
 
11,920

 
12,744

 
2,841

 
11,432

 
550

Gas Station & Car Wash
 
3,145

 
3,236

 
519

 
2,090

 
117

Mixed Use
 
930

 
953

 
212

 
1,108

 
43

Industrial & Warehouse
 
12,398

 
12,470

 
810

 
9,496

 
323

Other
 
10,262

 
10,351

 
1,461

 
9,826

 
405

Real Estate—Construction
 
—

 
—

 
—

 
—

 
—

Commercial Business
 
34,663

 
36,472

 
5,805

 
27,010

 
1,572

Trade Finance
 
5,600

 
5,628

 
159

 
5,313

 
41

Consumer and Other
 
535

 
535

 
32

 
348

 
23

 
 
$
86,771

 
$
89,840

 
$
12,666

 
$
74,406

 
$
3,255

With No Related Allowance
 
 
 
 
 
 
 
 
 
 
Real Estate—Residential
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Real Estate—Commercial
 
 
 
 
 
 
 
 
 
 
Retail
 
4,025

 
6,591

 
—

 
3,428

 
45

Hotel & Motel
 
6,502

 
10,498

 
—

 
6,304

 
—

Gas Station & Car Wash
 
4,845

 
8,273

 
—

 
3,803

 
139

Mixed Use
 
845

 
912

 
—

 
697

 
—

Industrial & Warehouse
 
3,806

 
7,204

 
—

 
3,958

 
10

Other
 
1,548

 
3,647

 
—

 
3,043

 
—

Real Estate—Construction
 
1,625

 
1,625

 
—

 
1,670

 
89

Commercial Business
 
5,443

 
8,437

 
—

 
2,770

 
25

Trade Finance
 
92

 
7,279

 
—

 
18

 
—

Consumer and Other
 
767

 
831

 
—

 
1,067

 
—

 
 
$
29,498

 
$
55,297

 
$
—

 
$
26,758

 
$
308

Total
 
$
116,269

 
$
145,137

 
$
12,666

 
$
101,164

 
$
3,563


*
Unpaid contractual principal balance less charge-offs, interest applied to principal and purchase discounts.





 
 
As of December 31, 2013
 
For the year ended December 31, 2013
Impaired APLs(1)
 
Recorded Investment*
 
Unpaid
Contractual Principal
Balance
 
Related
Allowance
 
Average
Recorded Investment*
 
Interest Income Recognized during Impairment
 
 
(In thousands)
With Related Allowance:
 
 
 
 
 
 
 
 
 
 
Real Estate—Residential
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Real Estate—Commercial
 
 
 
 
 
 
 
 
 
 
Retail
 
391

 
397

 
15

 
1,084

 
14

Hotel & Motel
 
—

 
—

 
—

 
—

 
—

Gas Station & Car Wash
 
794

 
885

 
341

 
485

 
—

Mixed Use
 
—

 
—

 
—

 
—

 
—

Industrial & Warehouse
 
5,128

 
5,200

 
612

 
6,323

 
—

Other
 
1,362

 
1,412

 
124

 
1,819

 
43

Real Estate—Construction
 
—

 
—

 
—

 
—

 
—

Commercial Business
 
1,984

 
3,354

 
622

 
2,827

 
5

Trade Finance
 
—

 
—

 
—

 
—

 
—

Consumer and Other
 
—

 
—

 
—

 
—

 
—

 
 
$
9,659

 
$
11,248

 
$
1,714

 
$
12,538

 
$
62

With No Related Allowance
 
 
 
 
 
 
 
 
 
 
Real Estate—Residential
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Real Estate—Commercial
 
 
 
 
 
 
 
 
 
 
Retail
 
1,244

 
2,216

 
—

 
953

 
14

Hotel & Motel
 
6,441

 
8,676

 
—

 
6,169

 
—

Gas Station & Car Wash
 
1,614

 
2,109

 
—

 
1,366

 
62

Mixed Use
 
—

 
—

 
—

 
—

 
—

Industrial & Warehouse
 
1,883

 
3,446

 
—

 
2,482

 
10

Other
 
1,135

 
1,547

 
—

 
1,600

 
—

Real Estate—Construction
 
—

 
—

 
—

 
—

 
—

Commercial Business
 
808

 
948

 
—

 
291

 
—

Trade Finance
 
—

 
—

 
—

 
—

 
—

Consumer and Other
 
767

 
831

 
—

 
779

 
—

 
 
$
13,892

 
$
19,773

 
$
—

 
$
13,640

 
$
86

Total
 
$
23,551

 
$
31,021

 
$
1,714

 
$
26,178

 
$
148



*
Unpaid contractual principal balance less charge-offs, interest applied to principal and purchase discounts.
(1) 
APLs that became impaired subsequent to being acquired.



 
 
As of December 31, 2012
 
For the year ended December 31, 2012
Total Impaired Loans
 
Recorded Investment*
 
Unpaid
Contractual Principal
Balance
 
Related
Allowance
 
Average
Recorded Investment*
 
Interest Income Recognized during Impairment
 
 
(In thousands)
With Related Allowance:
 
 
 
 
 
 
 
 
 
 
Real Estate—Residential
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Real Estate—Commercial
 
 
 
 
 
 
 
 
 
 
Retail
 
5,477

 
5,610

 
1,167

 
3,512

 
255

Hotel & Motel
 
8,990

 
8,995

 
1,860

 
17,536

 
426

Gas Station & Car Wash
 
1,892

 
2,440

 
73

 
2,908

 
—

Mixed Use
 
900

 
976

 
250

 
3,182

 
—

Industrial & Warehouse
 
2,074

 
2,153

 
567

 
3,052

 
66

Other
 
16,184

 
16,389

 
989

 
14,322

 
805

Real Estate—Construction
 
—

 
—

 
—

 
26

 
—

Commercial Business
 
26,354

 
29,073

 
4,158

 
25,227

 
1,252

Trade Finance
 
6,199

 
7,173

 
96

 
3,510

 
248

Consumer and Other
 
55

 
56

 
—

 
119

 
4

 
 
$
68,125

 
$
72,865

 
$
9,160

 
$
73,394

 
$
3,056

With No Related Allowance
 
 
 
 
 
 
 
 
 
 
Real Estate—Residential
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Real Estate—Commercial
 
 
 
 
 
 
 
 
 
 
Retail
 
2,516

 
5,404

 
—

 
1,602

 
48

Hotel & Motel
 
6,212

 
8,202

 
—

 
1,365

 
—

Gas Station & Car Wash
 
1,731

 
4,359

 
—

 
1,775

 
—

Mixed Use
 
899

 
923

 
—

 
180

 
—

Industrial & Warehouse
 
4,392

 
6,450

 
—

 
4,408

 
160

Other
 
2,371

 
6,283

 
—

 
2,598

 
—

Real Estate—Construction
 
1,710

 
1,710

 
—

 
1,710

 
111

Commercial Business
 
920

 
1,368

 
—

 
8,028

 
18

Trade Finance
 
—

 
—

 
—

 
946

 
—

Consumer and Other
 
1,280

 
1,316

 
—

 
357

 
20

 
 
$
22,031

 
$
36,015

 
$
—

 
$
22,969

 
$
357

Total
 
$
90,156

 
$
108,880

 
$
9,160

 
$
96,363

 
$
3,413


*
Unpaid contractual principal balance less charge-offs, interest applied to principal and purchase discounts.














 
 
As of December 31, 2012
 
For the year ended December 31, 2012
Impaired APLs(1)
 
Recorded Investment*
 
Unpaid
Contractual Principal
Balance
 
Related
Allowance
 
Average
Recorded Investment*
 
Interest Income Recognized during Impairment
 
 
(In thousands)
With Related Allowance:
 
 
 
 
 
 
 
 
 
 
Real Estate—Residential
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Real Estate—Commercial
 
 
 
 
 
 
 
 
 
 
Retail
 
1,286

 
1,286

 
9

 
920

 
64

Hotel & Motel
 
—

 
—

 
—

 
3,676

 
—

Gas Station & Car Wash
 
—

 
—

 
—

 
57

 
—

Mixed Use
 
—

 
—

 
—

 
—

 
—

Industrial & Warehouse
 
832

 
887

 
2

 
331

 
36

Other
 
4,272

 
4,461

 
172

 
1,711

 
288

Real Estate—Construction
 
—

 
—

 
—

 
—

 
—

Commercial Business
 
2,974

 
3,072

 
1,074

 
1,625

 
26

Trade Finance
 
—

 
—

 
—

 
—

 
—

Consumer and Other
 
—

 
—

 
—

 
—

 
—

 
 
$
9,364

 
$
9,706

 
$
1,257

 
$
8,320

 
$
414

With No Related Allowance
 
 
 
 
 
 
 
 
 
 
Real Estate—Residential
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Real Estate—Commercial
 
 
 
 
 
 
 
 
 
 
Retail
 
800

 
840

 
—

 
161

 
48

Hotel & Motel
 
5,990

 
7,375

 
—

 
1,198

 
—

Gas Station & Car Wash
 
774

 
1,865

 
—

 
608

 
—

Mixed Use
 
—

 
—

 
—

 
—

 
—

Industrial & Warehouse
 
3,190

 
3,302

 
—

 
2,005

 
160

Other
 
807

 
3,156

 
—

 
993

 
—

Real Estate—Construction
 
—

 
—

 
—

 
—

 
—

Commercial Business
 
349

 
681

 
—

 
680

 
15

Trade Finance
 
—

 
—

 
—

 
—

 
—

Consumer and Other
 
802

 
836

 
—

 
160

 
—

 
 
$
12,712

 
$
18,055

 
$
—

 
$
5,805

 
$
223

Total
 
$
22,076

 
$
27,761

 
$
1,257

 
$
14,125

 
$
637


*
Unpaid contractual principal balance less charge-offs, interest applied to principal and purchase discounts.
(1) 
APLs that became impaired subsequent to being acquired.









 
For the year ended
December 31, 2011
Total Impaired Loans
Average
Recorded Investment*
 
Interest Income Recognized during Impairment
 
 
With Related Allowance:
 
 
 
Real Estate—Residential
$
—

 
$
—

Real Estate—Commercial
 
 
 
Retail
3,476

 
34

Hotel & Motel
14,581

 
1,013

Gas Station & Car Wash
2,825

 
95

Mixed Use
1,561

 
158

Industrial & Warehouse
4,819

 
310

Other
6,195

 
298

Real Estate—Construction
2,504

 
—

Commercial Business
23,133

 
538

Trade Finance
899

 
71

Consumer and Other
—

 
—

 
$
59,993

 
$
2,517

With No Related Allowance
 
 
 
Real Estate—Residential
$
—

 
$
—

Real Estate—Commercial
 
 
 
Retail
6,199

 
—

Hotel & Motel
4,722

 
—

Gas Station & Car Wash
2,584

 
—

Mixed Use
2,157

 
—

Industrial & Warehouse
3,150

 
—

Other
10,596

 
—

Real Estate—Construction
3,280

 
113

Commercial Business
12,432

 
203

Trade Finance
758

 
30

Consumer and Other
145

 
—

 
$
46,023

 
$
346

Total
$
106,016

 
$
2,863

*
Unpaid contractual principal balance less charge-offs, interest applied to principal and purchase discounts.
The recorded investment in individually impaired loans was as follows:
 
 
December 31, 2013
 
December 31, 2012
 
(In thousands)
With Allocated Allowance
 
 
 
Without charge-off
$
85,920

 
$
65,526

With charge-off
851

 
2,599

With No Allocated Allowance
 
 
 
Without charge-off
23,160

 
17,536

With charge-off
6,338

 
4,495

Allowance on Impaired Loans
(12,666
)
 
(9,160
)
Impaired Loans, net of allowance
$
103,603

 
$
80,996
Aging of Past Due Loans
ments are reasonably assured.
The following tables present the aging of past due loans as of December 31, 2013 and December 31, 2012 by class of loans:
 
As of December 31, 2013
 
Past Due and Accruing
 
 
 
 
 
30-59 Days Past Due
 
60-89 Days Past Due
 
90 or More Days Past Due
 
Total
 
Nonaccrual Loans
 
Total Delinquent loans
 
(In thousands)
Legacy Loans
 
Real estate—Residential
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Real estate—Commercial
 
 
 
 
 
 
 
 
 
 
 
Retail
122

 
—

 
—

 
122

 
4,363

 
4,485

Hotel & Motel
—

 
—

 
—

 
—

 
121

 
121

Gas Station & Car Wash
1,038

 
—

 
—

 
1,038

 
2,228

 
3,266

Mixed Use
—

 
—

 
—

 
—

 
974

 
974

Industrial & Warehouse
215

 
—

 
—

 
215

 
1,923

 
2,138

Other
—

 
—

 
—

 
—

 
1,398

 
1,398

Real estate—Construction
—

 
—

 
—

 
—

 
—

 
—

Commercial business
780

 
244

 
—

 
1,024

 
6,402

 
7,426

Trade finance
—

 
—

 
—

 
—

 
1,031

 
1,031

Consumer and other
54

 
22

 
—

 
76

 
—

 
76

     Subtotal
$
2,209

 
$
266

 
$
—

 
$
2,475

 
$
18,440

 
$
20,915

Acquired Loans (1)
 
 
 
 
 
 
 
 
 
 
 
Real estate—Residential
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Real estate—Commercial
 
 
 
 
 
 
 
 
 
 
 
Retail
2,024

 
—

 
—

 
2,024

 
1,030

 
3,054

Hotel & Motel
—

 
—

 
—

 
—

 
6,441

 
6,441

Gas Station & Car Wash
1,068

 
—

 
—

 
1,068

 
1,339

 
2,407

Mixed Use
576

 
—

 
—

 
576

 
—

 
576

Industrial & Warehouse
121

 
—

 
—

 
121

 
6,890

 
7,011

Other
516

 
1,729

 
—

 
2,245

 
1,376

 
3,621

Real estate—Construction
—

 
—

 
—

 
—

 
—

 
—

Commercial business
524

 
703

 
5

 
1,232

 
2,708

 
3,940

Trade finance
—

 
—

 
—

 
—

 
—

 
—

Consumer and other
284

 
74

 
—

 
358

 
930

 
1,288

     Subtotal
$
5,113

 
$
2,506

 
$
5

 
$
7,624

 
$
20,714

 
$
28,338

TOTAL
$
7,322

 
$
2,772

 
$
5

 
$
10,099

 
$
39,154

 
$
49,253

(1) 
The Acquired Loan balances exclude ACILs of $9.7 million, $2.5 million and $43.8 million that were 30-59 days, 60-89 days and 90 or more days past due, respectively.

 
As of December 31, 2012
 
Past Due and Accruing
 
 
 
 
 
30-59 Days Past Due
 
60-89 Days Past Due
 
90 or More Days Past Due
 
Total
 
Nonaccrual Loans
 
Total Delinquent loans
 
(In Thousands)
Legacy Loans
 
Real estate—Residential
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Real estate—Commercial
 
 
 
 
 
 
 
 
 
 
 
Retail
87

 
—

 
—

 
87

 
3,316

 
3,403

Hotel & Motel
—

 
—

 
—

 
—

 
437

 
437

Gas Station & Car Wash
359

 
—

 
—

 
359

 
2,848

 
3,207

Mixed Use
34

 
—

 
—

 
34

 
1,799

 
1,833

Industrial & Warehouse
—

 
—

 
—

 
—

 
1,950

 
1,950

Other
—

 
115

 
—

 
115

 
2,379

 
2,494

Real estate—Construction
—

 
—

 
—

 
—

 
—

 
—

Commercial business
298

 
234

 
—

 
532

 
4,942

 
5,474

Trade finance
—

 
—

 
—

 
—

 
869

 
869

Consumer and other
190

 
—

 
—

 
190

 
—

 
190

     Subtotal
968

 
349

 
—

 
1,317

 
18,540

 
19,857

Acquired Loans (1)
 
 
 
 
 
 
 
 
 
 
 
Real estate—Residential
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Real estate—Commercial
 
 
 
 
 
 
 
 
 
 
 
Retail
75

 
—

 
—

 
75

 
—

 
75

Hotel & Motel
—

 
—

 
—

 
—

 
5,990

 
5,990

Gas Station & Car Wash
—

 
1,109

 
—

 
1,109

 
774

 
1,883

Mixed Use
—

 
—

 
—

 
—

 
—

 
—

Industrial & Warehouse
—

 
3,278

 
—

 
3,278

 
—

 
3,278

Other
15

 
—

 
—

 
15

 
937

 
952

Real estate—Construction
—

 
—

 
—

 
—

 
—

 
—

Commercial business
220

 
285

 
—

 
505

 
2,442

 
2,947

Trade finance
—

 
—

 
—

 
—

 
—

 
—

Consumer and other
98

 
17

 
—

 
115

 
970

 
1,085

     Subtotal
$
408

 
$
4,689

 
$
—

 
$
5,097

 
$
11,113

 
$
16,210

TOTAL
$
1,376

 
$
5,038

 
$
—

 
$
6,414

 
$
29,653

 
$
36,067

(1) 
The Acquired Loan balances exclude ACILs of $7.0 million, $12.1 million and $17.7 million that were 30-59 days, 60-89 days and 90 or more days past due, respectively.
Risk Category of Loans by Class of Loans
The following tables present the risk rating for Legacy Loans and Acquired Loans as of December 31, 2013 and December 31, 2012 by class of loans:
 
As of December 31, 2013
 
Pass
 
Special
Mention
 
Substandard
 
Doubtful/Loss
 
Total
 
(In thousands)
Legacy Loans:
 
 
 
Real estate—Residential
$
8,070

 
$
—

 
$
—

 
$
—

 
$
8,070

Real estate—Commercial
 
 
 
 
 
 
 
 

Retail
842,815

 
858

 
14,365

 
—

 
858,038

Hotel & Motel
568,263

 
1,841

 
13,661

 
—

 
583,765

Gas Station & Car Wash
455,205

 
—

 
10,854

 
—

 
466,059

Mixed Use
259,788

 
360

 
3,324

 
—

 
263,472

Industrial & Warehouse
251,993

 
4,116

 
12,056

 
—

 
268,165

Other
589,895

 
3,928

 
11,493

 
359

 
605,675

Real estate—Construction
71,231

 
—

 
1,626

 
—

 
72,857

Commercial business
759,956

 
12,756

 
42,952

 
—

 
815,664

Trade finance
91,055

 
22,589

 
9,297

 
—

 
122,941

Consumer and other
32,389

 
32

 
535

 
—

 
32,956

Subtotal
$
3,930,660

 
$
46,480

 
$
120,163

 
$
359

 
$
4,097,662

Acquired Loans:
 
 
 
 
 
 
 
 
 
Real estate—Residential
$
1,066

 
$
284

 
$
619

 
$
—

 
$
1,969

Real estate—Commercial
 
 
 
 
 
 
 
 
 
Retail
237,325

 
9,319

 
28,128

 
94

 
274,866

Hotel & Motel
109,138

 
7,134

 
14,836

 
179

 
131,287

Gas Station & Car Wash
35,356

 
1,621

 
14,440

 
245

 
51,662

Mixed Use
32,992

 
1,467

 
5,316

 
—

 
39,775

Industrial & Warehouse
92,570

 
3,525

 
19,720

 
—

 
115,815

Other
133,752

 
6,698

 
21,573

 
560

 
162,583

Real estate—Construction
—

 
—

 
—

 
—

 
—

Commercial business
94,854

 
10,266

 
26,245

 
2,064

 
133,429

Trade finance
1,744

 
—

 
—

 
—

 
1,744

Consumer and other
51,036

 
2,695

 
7,460

 
4,360

 
65,551

Subtotal
$
789,833

 
$
43,009

 
$
138,337

 
$
7,502

 
$
978,681

Total
$
4,720,493

 
$
89,489

 
$
258,500

 
$
7,861

 
$
5,076,343


 
 
As of December 31, 2012
 
Pass
 
Special
Mention
 
Substandard
 
Doubtful/Loss
 
Total
 
 
 
(In thousands)
Legacy Loans:
 
 
 
Real estate—Residential
$
9,223

 
$
—

 
$
24

 
$
—

 
$
9,247

Real estate—Commercial
 
 
 
 
 
 
 
 
 
Retail
589,720

 
3,584

 
12,303

 
—

 
605,607

Hotel & Motel
453,908

 
1,894

 
16,795

 
—

 
472,597

Gas Station & Car Wash
370,803

 
1,288

 
9,982

 
—

 
382,073

Mixed Use
233,687

 
2,131

 
3,423

 
—

 
239,241

Industrial & Warehouse
202,066

 
1,010

 
4,295

 
370

 
207,741

Other
431,686

 
1,219

 
17,084

 
—

 
449,989

Real estate—Construction
56,270

 
—

 
1,710

 
—

 
57,980

Commercial business
726,073

 
6,164

 
21,514

 
104

 
753,855

Trade finance
136,197

 
7,976

 
6,199

 
—

 
150,372

Consumer and other
26,801

 
13

 
1,006

 
—

 
27,820

Subtotal
$
3,236,434

 
$
25,279

 
$
94,335

 
$
474

 
$
3,356,522

Acquired Loans:
 
 
 
Real estate—Residential
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Real estate—Commercial
 
 
 
 
 
 
 
 
 
Retail
225,982

 
6,469

 
17,331

 
—

 
249,782

Hotel & Motel
105,032

 
16,150

 
13,215

 
—

 
134,397

Gas Station & Car Wash
33,360

 
7,192

 
4,119

 
—

 
44,671

Mixed Use
34,927

 
3,826

 
6,526

 
—

 
45,279

Industrial & Warehouse
114,616

 
1,385

 
9,470

 
—

 
125,471

Other
121,666

 
4,473

 
17,479

 
—

 
143,618

Real estate—Construction
1,093

 
—

 
5,972

 
—

 
7,065

Commercial business
119,026

 
14,057

 
34,047

 
571

 
167,701

Trade finance
242

 
334

 
1,122

 
—

 
1,698

Consumer and other
17,292

 
424

 
4,329

 
89

 
22,134

Subtotal
$
773,236

 
$
54,310

 
$
113,610

 
$
660

 
$
941,816

Total
$
4,009,670

 
$
79,589

 
$
207,945

 
$
1,134

 
$
4,298,338
Loans Sold From Loans Held For Investment
The following table presents loans sold from loans held for investment or transferred from held for investment to held for sale during the year ended December 31, 2013 and 2012 by portfolio segment:
 
 
Year Ended December 31,
 
2013
 
2012
Sales or reclassification to held for sale
 
Real estate - Commercial
$
6,900

 
$
3,061

     Total
$
6,900

 
$
3,061
Allowance for Loan Losses and Impaired Loans, Qualitative and Quantitative Analysis
The following table presents loans by portfolio segment and impairment method at December 31, 2013 and December 31, 2012:
 
 
As of December 31, 2013
 
Real estate -
Residential
 
Real estate -
Commercial
 
Real estate -
Construction
 
Commercial
business
 
Trade
finance
 
Consumer
and other
 
Total
 
(Dollars in thousands)
Impaired loans (Gross carrying value)
$
—

 
$
67,544

 
$
1,625

 
$
40,106

 
$
5,692

 
$
1,302

 
$
116,269

Specific allowance
$
—

 
$
6,670

 
$
—

 
$
5,805

 
$
159

 
$
32

 
$
12,666

Loss coverage ratio
N/A

 
9.9
%
 
0.0
%
 
14.5
%
 
2.8
%
 
2.5
%
 
10.9
%
Non-impaired loans
$
10,039

 
$
3,753,619

 
$
71,231

 
$
908,987

 
$
118,993

 
$
97,205

 
$
4,960,074

General allowance
$
25

 
$
39,227

 
$
628

 
$
11,787

 
$
2,494

 
$
493

 
$
54,654

Loss coverage ratio
0.2
%
 
1.0
%
 
0.9
%
 
1.3
%
 
2.1
%
 
0.5
%
 
1.1
%
Total loans
$
10,039

 
$
3,821,163

 
$
72,856

 
$
949,093

 
$
124,685

 
$
98,507

 
$
5,076,343

Total allowance for loan losses
$
25

 
$
45,897

 
$
628

 
$
17,592

 
$
2,653

 
$
525

 
$
67,320

Loss coverage ratio
0.2
%
 
1.2
%
 
0.9
%
 
1.9
%
 
2.1
%
 
0.5
%
 
1.3
%

 
As of December 31, 2012
 
Real estate -
Residential
 
Real estate -
Commercial
 
Real estate -
Construction
 
Commercial
business
 
Trade
finance
 
Consumer
and other
 
Total
 
(Dollars in thousands)
Impaired loans (Gross carrying value)
$
—

 
$
53,634

 
$
1,710

 
$
27,274

 
$
6,199

 
$
1,338

 
$
90,155

Specific allowance
$
—

 
$
4,906

 
$
—

 
$
4,158

 
$
96

 
$
—

 
$
9,160

Loss coverage ratio
N/A

 
9.1
%
 
0.0
%
 
15.2
%
 
1.5
%
 
0.0
%
 
10.2
%
Non-impaired loans
$
9,247

 
$
3,046,832

 
$
63,335

 
$
894,282

 
$
145,871

 
$
48,616

 
$
4,208,183

General allowance
$
74

 
$
40,256

 
$
986

 
$
13,448

 
$
2,256

 
$
761

 
$
57,781

Loss coverage ratio
0.8
%
 
1.3
%
 
1.6
%
 
1.5
%
 
1.5
%
 
1.6
%
 
1.4
%
Total loans
$
9,247

 
$
3,100,466

 
$
65,045

 
$
921,556

 
$
152,070

 
$
49,954

 
$
4,298,338

Total allowance for loan losses
$
74

 
$
45,162

 
$
986

 
$
17,606

 
$
2,352

 
$
761

 
$
66,941

Loss coverage ratio
0.8
%
 
1.5
%
 
1.5
%
 
1.9
%
 
1.5
%
 
1.5
%
 
1.6
%
Troubled Debt Restructurings
The following table presents loans by class modified as TDRs that occurred during the year ended December 31, 2013 and 2012:
 
For the year ended
 
For the year ended
 
December 31, 2013
 
December 31, 2012
 
Number of Loans 
Pre-Modification
Post-Modification 
 
Number of Loans 
Pre-Modification
Post-Modification 
 
 
 
 
 
 
Legacy Loans:
 
 
 
 
 
 
 
Real estate - Residential
—
$
—

$
—

 
—
$
—

$
—

Real estate - Commercial
 
 
 
 
 
 
 
Retail
6
6,195

6,214

 
5
2,456

2,321

Hotel & Motel
—
—

—

 
1
1,479

1,444

Gas Station & Car Wash
1
1,371

880

 
1
216

50

Mixed Use
—
—

—

 
—
—

—

Industrial & Warehouse
1
370

338

 
1
502

494

Other
—
—

—

 
4
12,391

9,234

Real estate - Construction
—
—

—

 
—
—

—

Commercial business
15
8,687

7,552

 
14
4,075

4,838

Trade Finance
—
—

—

 
1
1,493

401

Consumer and Other
2
970

490

 
1
480

480

Subtotal
25
$
17,593

$
15,474

 
28
$
23,092

$
19,262

Acquired Loans:
 
 
 
 
 
 
 
Real estate - Residential
—
$
—

$
—

 
—
$
—

$
—

Real estate - Commercial
 
 
 
 
 
 
 
Retail
3
336

321

 
2
1,458

1,286

Hotel & Motel
—
—

—

 
1
6,165

5,990

Gas Station & Car Wash
1
165

—

 
—
—

—

Mixed Use
—
—

—

 
—
—

—

Industrial & Warehouse
2
10,336

5,208

 
—
—

—

Other
2
1,137

1,122

 
1
670

631

Real estate - Construction
—
—

—

 
—
—

—

Commercial business
8
1,182

441

 
6
2,476

2,384

Trade Finance
—
—

—

 
—
—

—

Consumer and Other
—
—

—

 
4
808

802

Subtotal
16
$
13,156

$
7,092

 
14
$
11,577

$
11,093

Total
41
$
30,749

$
22,566

 
42
$
34,669

$
30,355

 
 
 
 
 
 
 
 
A summary of TDRs on accrual and nonaccrual by type of concession as of December 31, 2013 and December 31, 2012 is presented below:
 
As of December 31, 2013
 
TDRs on accrual
 
TDRs on nonaccrual
 
TOTAL
 
Real estate -
Commercial
 
Commercial
Business
 
Other
 
Total
 
Real estate -
Commercial
 
Commercial
Business
 
Other
 
Total
 
 
(In thousands)
Payment concession
$
7,437

 
$
1,057

 
$
—

 
$
8,494

 
$
9,489

 
$
1,279

 
$
767

 
$
11,535

 
$
20,029

Maturity / Amortization concession
765

 
6,565

 
535

 
7,865

 
1,653

 
3,656

 
—

 
5,309

 
13,174

Rate concession
13,055

 
4,490

 
—

 
17,545

 
8,107

 
—

 
—

 
8,107

 
25,652

Principal forgiveness
—

 
—

 
—

 
—

 
—

 
49

 
—

 
49

 
49

 
$
21,257

 
$
12,112

 
$
535

 
$
33,904

 
$
19,249

 
$
4,984

 
$
767

 
$
25,000

 
$
58,904


 
As of December 31, 2012
 
TDRs on accrual
 
TDRs on nonaccrual
 
TOTAL
 
Real estate -
Commercial
 
Commercial
Business
 
Other
 
Total
 
Real estate -
Commercial
 
Commercial
Business
 
Other
 
Total
 
 
(In thousands)
Payment concession
$
9,608

 
$
687

 
$
—

 
$
10,295

 
$
4,735

 
$
4,618

 
$
802

 
$
10,155

 
$
20,450

Maturity / Amortization concession
348

 
3,847

 
536

 
4,731

 
652

 
1,941

 
869

 
3,462

 
8,193

Rate concession
13,594

 
1,229

 
—

 
14,823

 
7,923

 
—

 
—

 
7,923

 
22,746

Principal forgiveness
—

 
—

 
—

 
—

 
—

 
62

 
—

 
62

 
62

 
$
23,550

 
$
5,763

 
$
536

 
$
29,849

 
$
13,310

 
$
6,621

 
$
1,671

 
$
21,602

 
$
51,451
Summary of Troubled Debt Restructurings with Subsequent Payment Default
$158 thousand, respectively.
The following table presents loans by class for TDRs that have been modified within the previous twelve months and have subsequently had a payment default during the years ended December 31, 2013 and 2012:

 
December 31, 2013
 
December 31, 2012
 
December 31, 2011
 
Number of
Loans
Balance
 
Number of
Loans
Balance
 
Number of
Loans
Balance
 
(Dollars In thousands)
Legacy Loans:
 
 
 
 
 
 
 
 
Real estate - Commercial
 
 
 
 
 
 
 
 
Retail
1
$
508

 
1
$
268

 
1
$
771

Hotel & Motel
—
—

 
—
—

 
2
—

Gas Station & Car Wash
—
—

 
1
50

 
—
—

Industrial & Warehouse
—
—

 
—
—

 
3
961

Other
—
—

 
1
562

 
1
294

Commercial Business
5
540

 
3
76

 
8
422

Subtotal
6
$
1,048

 
6
$
956

 
15
$
2,448

Acquired Loans:
 
 
 
 
 
 
 
 
Real estate - Commercial
 
 
 
 
 
 
 
 
Retail
1
$
56

 
—
$
—

 
—
$
—

Hotel & Motel
—
—

 
1
5,990

 
—
—

Gas Station & Car Wash
1
—

 
—
—

 
—
—

Industrial & Warehouse
1
5,128

 
—
—

 
—
—

Other
—
—

 
—
—

 
—
—

Commercial Business
3
47

 
2
143

 
—
—

Subtotal
6
$
5,231

 
3
$
6,133

 
—
$
—

 
12
$
6,279

 
9
$
7,089

 
15
$
2,448
Covered Non-performing Assets
The covered nonperforming assets at December 31, 2013 and December 31, 2012 were as follows:
 
December 31, 2013
 
December 31, 2012
 
(In thousands)
Covered loans on nonaccrual status
$
236

 
$
489

Covered other real estate owned
590

 
393

     Total covered nonperforming assets
$
826

 
$
882

 
 
 
 
Acquired covered loans
$
55,088

 
$
72,528