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Loans Receivable and Allowance for Loan Losses (Tables)
 9 Months Ended
Sep. 30, 2014
Receivables [Abstract]  
Summary of Loans Receivable by Major Category
The following is a summary of loans receivable by major category:
 
September 30, 2014
 
December 31, 2013
 
(In thousands)
Loan portfolio composition
 
 
 
Real estate loans:
 
 
 
Residential
$
19,203

 
$
10,039

Commercial & industrial
4,211,977

 
3,821,163

Construction
86,780

 
72,856

Total real estate loans
4,317,960

 
3,904,058

Commercial business
875,808

 
949,093

Trade finance
148,116

 
124,685

Consumer and other
92,362

 
98,507

Total loans outstanding
5,434,246

 
5,076,343

Less: deferred loan fees
(1,402
)
 
(2,167
)
Loans receivable
5,432,844

 
5,074,176

Less: allowance for loan losses
(68,232
)
 
(67,320
)
Loans receivable, net of allowance for loan losses
$
5,364,612

 
$
5,006,856
Loans and Leases Acquired, Accretable Yield Movement Schedule
The following table presents changes in the accretable discount on the ACILs for the three and nine months ended September 30, 2014 and 2013:
 
Three Months Ended September 30,

Nine Months Ended September 30,

2014

2013

2014

2013

(In thousands)
Balance at beginning of period
$
28,284


$
37,090


$
47,398


$
18,651

Additions due to acquisitions during the period
—


14,928


—


19,873

Accretion
(3,790
)

(4,250
)

(12,854
)

(11,281
)
Changes in expected cash flows
2,191


5,689


(7,859
)

26,214

Balance at end of period
$
26,685


$
53,457


$
26,685


$
53,457
Allowance for Loan Losses by Portfolio Segment
The following tables detail the activity in the allowance for loan losses by portfolio segment for the three and nine months ended September 30, 2014 and 2013:
 
 
 
 
Legacy
 
Acquired
 
Total
 
Real Estate
 
Commercial Business
 
Trade Finance
 
Consumer and Other
 
Real Estate
 
Commercial Business
 
Trade Finance
 
Consumer and Other
 
 
(In thousands)
Three Months Ended September 30, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
$
39,058

 
$
14,659

 
$
4,568

 
$
591

 
$
7,289

 
$
639

 
$
—

 
$
66

 
$
66,870

Provision (credit) for loan losses
3,553

 
191

 
793

 
(112
)
 
53

 
(214
)
 
—

 
(8
)
 
4,256

Loans charged off
(1,265
)
 
(1,580
)
 
(710
)
 
(1
)
 
10

 
(120
)
 
—

 
—

 
(3,666
)
Recoveries of charge offs
24

 
287

 
—

 
10

 
131

 
320

 
—

 
—

 
772

Balance, end of period
$
41,370

 
$
13,557

 
$
4,651

 
$
488

 
$
7,483

 
$
625

 
$
—

 
$
58

 
$
68,232

Nine Months Ended September 30, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
$
40,068

 
$
16,796

 
$
2,653

 
$
461

 
$
6,482

 
$
796

 
$
—

 
$
64

 
$
67,320

Provision (credit) for loan losses
3,206

 
2,402

 
2,765

 
(174
)
 
1,126

 
884

 
—

 
69

 
10,278

Loans charged off
(2,078
)
 
(7,099
)
 
(767
)
 
(20
)
 
(273
)
 
(1,385
)
 
—

 
(78
)
 
(11,700
)
Recoveries of charge offs
174

 
1,458

 
—

 
221

 
148

 
330

 
—

 
3

 
2,334

Balance, end of period
$
41,370

 
$
13,557

 
$
4,651

 
$
488

 
$
7,483

 
$
625

 
$
—

 
$
58

 
$
68,232


 
 
 
 
Legacy
 
Acquired
 
Total
 
Real Estate
 
Commercial Business
 
Trade Finance
 
Consumer and Other
 
Real Estate
 
Commercial Business
 
Trade Finance
 
Consumer and Other
 
 
(In thousands)
Three Months Ended September 30, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
$
41,932

 
$
16,520

 
$
2,335

 
$
528

 
$
9,632

 
$
654

 
$
—

 
$
74

 
$
71,675

Provision (credit) for loan losses
545

 
(2,085
)
 
178

 
52

 
1,221

 
830

 
—

 
3

 
744

Loans charged off
(528
)
 
(774
)
 
—

 
—

 
(5,668
)
 
(813
)
 
—

 
(7
)
 
(7,790
)
Recoveries of charge offs
62

 
958

 
—

 
50

 
5

 
10

 
—

 
1

 
1,086

Balance, end of period
$
42,011

 
$
14,619

 
$
2,513

 
$
630

 
$
5,190

 
$
681

 
$
—

 
$
71

 
$
65,715

Nine Months Ended September 30, 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
2,557

 
(1,004
)
 
190

 
(96
)
 
6,308

 
1,126

 
(3
)
 
(28
)
 
9,050

Loans charged off
(2,209
)
 
(2,370
)
 
(26
)
 
(9
)
 
(5,843
)
 
(1,621
)
 
—

 
(41
)
 
(12,119
)
Recoveries of charge offs
158

 
1,503

 
—

 
77

 
7

 
61

 
—

 
37

 
1,843

Balance, end of period
$
42,011

 
$
14,619

 
$
2,513

 
$
630

 
$
5,190

 
$
681

 
$
—

 
$
71

 
$
65,715


The following tables disaggregate the allowance for loan losses and the loans outstanding by impairment methodology at September 30, 2014 and December 31, 2013:
 
September 30, 2014
 
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
$
3,181

 
$
4,089

 
$
2,624

 
$
—

 
$
445

 
$
357

 
$
—

 
$
—

 
$
10,696

Collectively evaluated for impairment
38,189

 
9,468

 
2,027

 
488

 
852

 
268

 
—

 
58

 
51,350

ACILs
—

 
—

 
—

 
—

 
6,186

 
—

 
—

 
—

 
6,186

Total
$
41,370

 
$
13,557

 
$
4,651

 
$
488

 
$
7,483

 
$
625

 
$
—

 
$
58

 
$
68,232

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans outstanding:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
58,331

 
$
40,429

 
$
9,976

 
$
508

 
$
18,810

 
$
2,042

 
$
—

 
$
604

 
$
130,700

Collectively evaluated for impairment
3,687,642

 
747,506

 
138,140

 
37,065

 
442,451

 
48,587

 
—

 
27,207

 
5,128,598

ACILs
—

 
—

 
—

 
—

 
110,726

 
37,244

 
—

 
26,978

 
174,948

Total
$
3,745,973

 
$
787,935

 
$
148,116

 
$
37,573

 
$
571,987

 
$
87,873

 
$
—

 
$
54,789

 
$
5,434,246


 
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

ACILs
—

 
—

 
—

 
—

 
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

ACILs
—

 
—

 
—

 
—

 
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
Impaired Financing Receivables
The following tables detail impaired loans (Legacy and APLs that became impaired subsequent to being acquired) as of September 30, 2014 and December 31, 2013 and for the three and nine months ended September 30, 2014 and 2013 and for the year ended December 31, 2013. Loans with no related allowance for loan losses are believed by management to have adequate collateral securing their carrying value.
 
 
 
As of September 30, 2014
 
For the Nine Months Ended September 30, 2014
 
For the Three Months Ended September 30, 2014
Total Impaired Loans
 
Recorded Investment*
 
Unpaid Contractual Principal Balance
 
Related
Allowance
 
Average Recorded Investment*
 
Interest Income Recognized during Impairment
 
Average Recorded Investment*
 
Interest Income Recognized during Impairment
 
 
(In thousands)
With related allowance:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate—residential
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Real estate—commercial
 
 
 
 
 
 
 

 

 

 

Retail
 
5,406

 
6,707

 
526

 
5,280

 
116

 
4,735

 
37

Hotel & motel
 
11,552

 
11,552

 
1,623

 
11,716

 
400

 
11,601

 
134

Gas station & car wash
 
1,973

 
3,517

 
391

 
2,574

 
45

 
2,037

 
15

Mixed use
 
484

 
498

 
13

 
908

 
—

 
884

 
—

Industrial & warehouse
 
7,123

 
7,138

 
135

 
8,608

 
219

 
7,029

 
73

Other
 
10,708

 
10,802

 
938

 
9,691

 
353

 
9,246

 
118

Real estate—construction
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Commercial business
 
34,065

 
34,405

 
4,446

 
31,672

 
1,138

 
32,076

 
368

Trade finance
 
9,601

 
16,831

 
2,624

 
7,295

 
—

 
9,100

 
—

Consumer and other
 
36

 
36

 
—

 
143

 
2

 
18

 
—

 
 
$
80,948

 
$
91,486

 
$
10,696

 
$
77,887

 
$
2,273

 
$
76,726

 
$
745

With no related allowance:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate—residential
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Real estate—commercial
 
 
 
 
 
 
 

 

 

 

Retail
 
9,976

 
12,103

 
—

 
7,650

 
277

 
9,167

 
93

Hotel & motel
 
7,843

 
13,344

 
—

 
6,821

 
—

 
7,141

 
—

Gas station & car wash
 
3,541

 
5,542

 
—

 
4,500

 
33

 
4,251

 
11

Mixed use
 
2,058

 
2,166

 
—

 
1,372

 
30

 
1,672

 
10

Industrial & warehouse
 
9,597

 
13,203

 
—

 
8,045

 
248

 
9,466

 
73

Other
 
5,304

 
7,917

 
—

 
4,627

 
24

 
6,411

 
8

Real estate—construction
 
1,576

 
1,576

 
—

 
1,599

 
—

 
1,582

 
—

Commercial business
 
8,406

 
11,232

 
—

 
9,110

 
204

 
9,366

 
65

Trade finance
 
375

 
468

 
—

 
434

 
—

 
380

 
—

Consumer and other
 
1,076

 
1,126

 
—

 
1,195

 
21

 
1,267

 
7

 
 
$
49,752

 
$
68,677

 
$
—

 
$
45,353

 
$
837

 
$
50,703

 
$
267

Total
 
$
130,700

 
$
160,163

 
$
10,696

 
$
123,240

 
$
3,110

 
$
127,429

 
$
1,012


*
Unpaid contractual principal balance less charge offs, interest applied to principal and purchase discounts.
 
 
For the Nine Months Ended September 30, 2013
 
For the Three Months Ended September 30, 2013
Total Impaired Loans
 
Average Recorded Investment*
 
Interest Income Recognized during Impairment
 
Average Recorded Investment*
 
Interest Income Recognized during Impairment
 
 
 
With related allowance:
 
 
 
 
 
 
 
 
Real estate—residential
 
$
—

 
$
—

 
$
—

 
$
—

Real estate—commercial
 
 
 
 
 
 
 
 
Retail
 
7,900

 
172

 
9,221

 
76

Hotel & motel
 
11,310

 
413

 
12,056

 
138

Gas station & car wash
 
1,826

 
46

 
2,017

 
15

Mixed use
 
1,152

 
33

 
1,378

 
10

Industrial & warehouse
 
8,770

 
171

 
10,940

 
44

Other
 
9,717

 
165

 
5,765

 
55

Real estate—construction
 
—

 
—

 
—

 
—

Commercial business
 
25,096

 
947

 
25,881

 
306

Trade finance
 
5,241

 
228

 
3,939

 
80

Consumer and other
 
302

 
17

 
548

 
6

 
 
$
71,314

 
$
2,192

 
$
71,745

 
$
730

With no related allowance:
 
 
 
 
 
 
 
 
Real estate—residential
 
$
—

 
$
—

 
$
—

 
$
—

Real estate—commercial
 
 
 
 
 
 
 
 
Retail
 
3,279

 
30

 
4,645

 
10

Hotel & motel
 
6,254

 
—

 
6,340

 
—

Gas station & car wash
 
3,543

 
104

 
4,105

 
35

Mixed use
 
660

 
—

 
430

 
—

Industrial & warehouse
 
3,996

 
8

 
3,374

 
3

Other
 
3,417

 
32

 
2,621

 
11

Real estate—construction
 
1,682

 
67

 
1,667

 
22

Commercial business
 
2,102

 
20

 
2,748

 
4

Trade finance
 
—

 
—

 
—

 
—

Consumer and other
 
1,142

 
—

 
1,012

 
—

 
 
$
26,075

 
$
261

 
$
26,942

 
$
85

Total
 
$
97,389

 
$
2,453

 
$
98,687

 
$
815

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

 
 
As of September 30, 2014
 
For the Nine Months Ended September 30, 2014
 
For the Three Months Ended September 30, 2014
Impaired APLs
 
Recorded Investment*
 
Unpaid
Contractual Principal
Balance
 
Related
Allowance
 
Average
Recorded Investment*
 
Interest Income Recognized during Impairment
 
Average Recorded Investment*
 
Interest Income Recognized during Impairment
 
 
(In thousands)
With related allowance:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate—residential
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Real estate—commercial
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Retail
 
1,744

 
2,743

 
46

 
634

 
71

 
1,020

 
24

Hotel & motel
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Gas station & car wash
 
1,781

 
1,963

 
387

 
1,788

 
45

 
1,791

 
15

Mixed use
 
352

 
348

 
2

 
177

 
—

 
353

 
—

Industrial & warehouse
 
—

 
—

 
—

 
1,282

 
—

 
—

 
—

Other
 
748

 
836

 
10

 
977

 
7

 
568

 
2

Real estate—construction
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Commercial business
 
961

 
1,115

 
357

 
1,170

 
10

 
873

 
3

Trade finance
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Consumer and other
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
 
$
5,586

 
$
7,005

 
$
802

 
$
6,028

 
$
133

 
$
4,605

 
$
44

With no related allowance:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate—residential
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Real estate—commercial
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Retail
 
1,538

 
2,298

 
—

 
1,546

 
22

 
1,554

 
7

Hotel & motel
 
5,606

 
7,375

 
—

 
6,185

 
—

 
5,961

 
—

Gas station & car wash
 
9

 
297

 
—

 
774

 
—

 
472

 
—

Mixed use
 
455

 
465

 
—

 
344

 
—

 
455

 
—

Industrial & warehouse
 
1,784

 
1,989

 
—

 
2,907

 
29

 
1,601

 
10

Other
 
4,793

 
5,719

 
—

 
3,745

 
24

 
5,311

 
8

Real estate—construction
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Commercial business
 
1,081

 
1,601

 
—

 
1,399

 
5

 
1,582

 
2

Trade finance
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Consumer and other
 
604

 
655

 
—

 
816

 
6

 
773

 
2

 
 
$
15,870

 
$
20,399

 
$
—

 
$
17,716

 
$
86

 
$
17,709

 
$
29

Total
 
$
21,456

 
$
27,404

 
$
802

 
$
23,744

 
$
219

 
$
22,314

 
$
73



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



 
 
For the Nine Months Ended September 30, 2013
 
For the Three Months Ended September 30, 2013
Impaired APLs
 
Average
Recorded Investment*
 
Interest Income Recognized during Impairment
 
Average Recorded Investment*
 
Interest Income Recognized during Impairment
 
 
With related allowance:
 
 
 
 
 
 
 
 
Real estate—residential
 
$
—

 
$
—

 
$
—

 
$
—

Real estate—commercial
 
 
 
 
 
 
 
 
Retail
 
1,247

 
10

 
831

 
4

Hotel & motel
 
—

 
—

 
—

 
—

Gas station & car wash
 
544

 
—

 
816

 
—

Mixed use
 
—

 
—

 
—

 
—

Industrial & warehouse
 
8,551

 
—

 
7,690

 
—

Other
 
1,154

 
8

 
158

 
2

Real estate—construction
 
—

 
—

 
—

 
—

Commercial business
 
3,058

 
5

 
3,011

 
2

Trade finance
 
—

 
—

 
—

 
—

Consumer and other
 
—

 
—

 
—

 
—

 
 
$
14,554

 
$
23

 
$
12,506

 
$
8

With no related allowance:
 
 
 
 
 
 
 
 
Real estate—residential
 
$
—

 
$
—

 
$
—

 
$
—

Real estate—commercial
 
 
 
 
 
 
 
 
Retail
 
907

 
30

 
1,330

 
10

Hotel & motel
 
6,138

 
—

 
6,243

 
—

Gas station & car wash
 
1,481

 
46

 
1,293

 
16

Mixed use
 
—

 
—

 
—

 
—

Industrial & warehouse
 
2,445

 
8

 
1,968

 
3

Other
 
2,020

 
32

 
2,157

 
11

Real estate—construction
 
—

 
—

 
—

 
—

Commercial business
 
99

 
—

 
50

 
—

Trade finance
 
—

 
—

 
—

 
—

Consumer and other
 
776

 
—

 
772

 
—

 
 
$
13,866

 
$
116

 
$
13,813

 
$
40

Total
 
$
28,420

 
$
139

 
$
26,319

 
$
48


*
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
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
 
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.

The recorded investment in individually impaired loans was as follows:
 
September 30, 2014
 
December 31, 2013
 
(In thousands)
With allocated allowance
 
 
 
Without charge off
$
79,016

 
$
85,920

With charge off
1,932

 
851

With no allocated allowance
 
 
 
Without charge off
41,510

 
23,160

With charge off
8,242

 
6,338

Allowance on impaired loans
(10,696
)
 
(12,666
)
Impaired loans, net of allowance
$
120,004

 
$
103,603
Aging of Past Due Loans
The following tables present the aging of past due loans as of September 30, 2014 and December 31, 2013 by class of loans:
 
As of September 30, 2014
 
Past Due and Accruing
 
 
 
 
 
30-59 Days Past Due
 
60-89 Days Past Due
 
90 or More Days Past Due
 
Total
 
Nonaccrual Loans (2)
 
Total Delinquent Loans
 
(In thousands)
Legacy Loans:
 
Real estate—residential
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Real estate—commercial
 
 
 
 
 
 
 
 
 
 
 
Retail
128

 
721

 
—

 
849

 
4,224

 
5,073

Hotel & motel
755

 
—

 
—

 
755

 
2,237

 
2,992

Gas station & car wash
—

 
—

 
—

 
—

 
2,998

 
2,998

Mixed use
441

 
—

 
—

 
441

 
943

 
1,384

Industrial & warehouse
208

 
—

 
—

 
208

 
2,419

 
2,627

Other
130

 
385

 
—

 
515

 
519

 
1,034

Real estate—construction
—

 
—

 
—

 
—

 
1,576

 
1,576

Commercial business
2,043

 
178

 
—

 
2,221

 
5,575

 
7,796

Trade finance
—

 
—

 
—

 
—

 
2,217

 
2,217

Consumer and other
231

 
—

 
—

 
231

 
21

 
252

     Subtotal
$
3,936

 
$
1,284

 
$
—

 
$
5,220

 
$
22,729

 
$
27,949

Acquired Loans: (1)
 
 
 
 
 
 
 
 
 
 
 
Real estate—residential
$
—

 
$
—

 

 
$
—

 
$
—

 
$
—

Real estate—commercial
 
 
 
 
 
 
 
 
 
 
 
Retail
137

 
170

 
—

 
307

 
1,244

 
1,551

Hotel & motel
—

 
—

 
—

 
—

 
5,606

 
5,606

Gas station & car wash
351

 
—

 
—

 
351

 
751

 
1,102

Mixed use
5,639

 
—

 
—

 
5,639

 
806

 
6,445

Industrial & warehouse
—

 
—

 
—

 
—

 
1,228

 
1,228

Other
—

 
—

 
—

 
—

 
4,450

 
4,450

Real estate—construction
—

 
—

 
—

 
—

 
—

 
—

Commercial business
771

 
113

 
—

 
884

 
1,694

 
2,578

Trade finance
—

 
—

 
—

 
—

 
—

 
—

Consumer and other
13

 
—

 
—

 
13

 
1,056

 
1,069

     Subtotal
$
6,911

 
$
283

 
$
—

 
$
7,194

 
$
16,835

 
$
24,029

TOTAL
$
10,847

 
$
1,567

 
$
—

 
$
12,414

 
$
39,564

 
$
51,978

(1) 
The Acquired Loans exclude ACILs.
(2) 
Nonaccrual loans exclude the guaranteed portion of delinquent SBA loans that are in liquidation totaling $28.1 million.

 
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 (2)
 
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 Loans exclude ACILs.
(2) Nonaccrual loans exclude guaranteed portion of delinquent SBA loans that are in liquidation totaling $27.5 million.
Risk Category of Loans by Class of Loans
The following tables present the risk rating for Legacy Loans and Acquired Loans as of September 30, 2014 and December 31, 2013 by class of loans:
 
As of September 30, 2014
 
Pass
 
Special
Mention
 
Substandard
 
Doubtful/Loss
 
Total
 
(In thousands)
Legacy Loans:
 
 
 
Real estate—residential
$
18,109

 
$
—

 
$
—

 
$
—

 
$
18,109

Real estate—commercial
 
 
 
 
 
 
 
 
 
Retail
984,921

 
20,455

 
14,536

 
—

 
1,019,912

Hotel & motel
741,380

 
283

 
7,686

 
—

 
749,349

Gas station & car wash
532,287

 
—

 
9,806

 
—

 
542,093

Mixed use
303,465

 
4,118

 
2,215

 
—

 
309,798

Industrial & warehouse
330,297

 
6,461

 
12,458

 
—

 
349,216

Other
646,929

 
10,716

 
13,071

 
—

 
670,716

Real estate—construction
85,204

 
—

 
1,576

 
—

 
86,780

Commercial business
726,547

 
20,691

 
40,227

 
470

 
787,935

Trade finance
110,774

 
25,580

 
11,762

 
—

 
148,116

Consumer and other
37,035

 
10

 
528

 
—

 
37,573

Subtotal
$
4,516,948

 
$
88,314

 
$
113,865

 
$
470

 
$
4,719,597

Acquired Loans:
 
 
 
 
 
 
 
 
 
Real estate—residential
$
801

 
$
293

 
$
—

 
$
—

 
$
1,094

Real estate—commercial
 
 
 
 
 
 
 
 
 
Retail
173,999

 
6,753

 
25,067

 
—

 
205,819

Hotel & motel
74,263

 
2,346

 
12,125

 
—

 
88,734

Gas station & car wash
28,520

 
353

 
8,899

 
256

 
38,028

Mixed use
31,731

 
1,472

 
3,624

 
—

 
36,827

Industrial & warehouse
78,613

 
1,069

 
14,521

 
—

 
94,203

Other
88,114

 
3,044

 
16,088

 
36

 
107,282

Real estate—construction
—

 
—

 
—

 
—

 
—

Commercial business
54,348

 
7,727

 
24,474

 
1,324

 
87,873

Trade finance
—

 
—

 
—

 
—

 
—

Consumer and other
41,746

 
2,024

 
9,549

 
1,470

 
54,789

Subtotal
$
572,135

 
$
25,081

 
$
114,347

 
$
3,086

 
$
714,649

Total
$
5,089,083

 
$
113,395

 
$
228,212

 
$
3,556

 
$
5,434,246


 
 
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
Loans Sold From Loans Held For Investment
 
 
 
 
 
 
 
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2014
 
2013
 
2014
 
2013
Reclassification to held for sale
(In thousands)
Real estate - Commercial
$
2,320

 
$
—

 
$
2,353

 
$
—

Real estate - Construction
—

 
—

 
—

 
—

Commercial Business
258

 
—

 
258

 
—

     Total
$
2,578

 
$
—

 
$
2,611

 
$
—
Allowance for Loan Losses and Impaired Loans, Qualitative and Quantitative Analysis
The following table presents loans by portfolio segment and impairment method at September 30, 2014 and December 31, 2013:
 
 
As of September 30, 2014
 
Real Estate—
Residential
 
Real Estate—
Commercial
 
Real Estate—
Construction
 
Commercial
Business
 
Trade
Finance
 
Consumer
and Other
 
Total
 
(In thousands)
Impaired loans (gross carrying value)
$
—

 
$
75,565

 
$
1,576

 
$
42,471

 
$
9,976

 
$
1,112

 
$
130,700

Specific allowance
$
—

 
$
3,626

 
$
—

 
$
4,446

 
$
2,624

 
$
—

 
$
10,696

Loss coverage ratio
0.0
%
 
4.8
%
 
0.0
%
 
10.5
%
 
26.3
%
 
0.0
%
 
8.2
%
Non-impaired loans
$
19,203

 
$
4,136,412

 
$
85,204

 
$
833,337

 
$
138,140

 
$
91,250

 
$
5,303,546

General allowance
$
131

 
$
44,650

 
$
446

 
$
9,736

 
$
2,027

 
$
546

 
$
57,536

Loss coverage ratio
0.7
%
 
1.1
%
 
0.5
%
 
1.2
%
 
1.5
%
 
0.6
%
 
1.1
%
Total loans
$
19,203

 
$
4,211,977

 
$
86,780

 
$
875,808

 
$
148,116

 
$
92,362

 
$
5,434,246

Total allowance for loan losses
$
131

 
$
48,276

 
$
446

 
$
14,182

 
$
4,651

 
$
546

 
$
68,232

Loss coverage ratio
0.7
%
 
1.1
%
 
0.5
%
 
1.6
%
 
3.1
%
 
0.6
%
 
1.3
%

 
As of December 31, 2013
 
Real Estate—
Residential
 
Real Estate—
Commercial
 
Real Estate—
Construction
 
Commercial
Business
 
Trade
Finance
 
Consumer
and Other
 
Total
 
(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
0.0
%
 
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
%
Troubled Debt Restructurings
The following table presents loans by class modified as TDRs that occurred during the three and nine months ended September 30, 2014:
 
Three Months Ended September 30, 2014
 
Nine Months Ended September 30, 2014
 
Number of
Loans 
 
Pre-
Modification
 
Post-
Modification 
 
Number of
Loans 
 
Pre-
Modification
 
Post-
Modification 
 
(Dollars in thousand)
Legacy Loans:
 
 
 
 
 
 
 
 
 
 
 
Real estate—commercial
 
 
 

 
 

 
 
 
 
 
 
Retail
—

 
$
—

 
$
—

 
1

 
$
523

 
$
514

Hotel & motel
—

 
—

 
—

 
—

 
—

 
—

Gas station & car wash
—

 
—

 
—

 
—

 
—

 
—

Mixed use
—

 
—

 
—

 
—

 
—

 
—

Industrial & warehouse
1

 
27

 
26

 
2

 
783

 
835

Other
1

 
87

 
116

 
2

 
327

 
355

Real estate - construction
—

 
—

 
—

 
—

 
—

 
—

Commercial business
7

 
11,866

 
11,060

 
14

 
17,759

 
16,935

Trade finance
1

 
2,629

 
2,759

 
2

 
2,721

 
3,559

Consumer and other
—

 
—

 
—

 
—

 
—

 
—

Subtotal
10

 
$
14,609

 
$
13,961

 
21

 
$
22,113

 
$
22,198

Acquired Loans:
 
 
 
 
 
 
 
 
 
 
 
Real estate—commercial
 
 
 

 
 

 
 
 
 
 
 
Retail
—

 
$
—

 
$
—

 
2

 
$
1,075

 
$
1,062

Hotel & motel
—

 
—

 
—

 
—

 
—

 
—

Gas station & car wash
—

 
—

 
—

 
1

 
794

 
756

Mixed use
—

 
—

 
—

 
—

 
—

 
—

Industrial & warehouse
1

 
75

 
74

 
1

 
75

 
74

Other
—

 
—

 
—

 
1

 
1,023

 
1,001

Real estate—construction
—

 
—

 
—

 
—

 
—

 
—

Commercial business
2

 
111

 
91

 
7

 
457

 
215

Trade finance
—

 
—

 
—

 
—

 
—

 
—

Consumer and other
—

 
$
—

 
$
—

 
1

 
$
195

 
$
187

Subtotal
3

 
$
186

 
$
165

 
13

 
$
3,619

 
$
3,295

 
13

 
$
14,795

 
$
14,126

 
34

 
$
25,732

 
$
25,493

A summary of TDRs on accrual and nonaccrual status by type of concession as of September 30, 2014 and December 31, 2013 is presented below:
 
As of September 30, 2014
 
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
$
12,345

 
$
601

 
$
—

 
$
12,946

 
$
3,986

 
$
660

 
$
—

 
$
4,646

 
$
17,592

Maturity / Amortization concession
1,788

 
22,016

 
690

 
24,494

 
1,471

 
5,265

 
243

 
6,979

 
31,473

Rate concession
13,480

 
5,141

 
—

 
18,621

 
9,714

 
45

 
179

 
9,938

 
28,559

Principal forgiveness
—

 
—

 
—

 
—

 
—

 
118

 
—

 
118

 
118

 
$
27,613

 
$
27,758

 
$
690

 
$
56,061

 
$
15,171

 
$
6,088

 
$
422

 
$
21,681

 
$
77,742


 
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
Summary of Troubled Debt Restructurings with Subsequent Payment Default
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 three and nine months ended September 30, 2014:

 
Three Months Ended
September 30, 2014
 
Nine Months Ended
September 30, 2014
 
Number of Loans
 
Balance
 
Number of
Loans
 
 
Balance
 
 
(Dollars In thousands)
Legacy Loans:
 
 
 
 
 
 
 
Real estate—commercial
 
 
 
 
 
 
 
Retail
1

 
$
707

 
1

 
$
707

Gas station & car wash
—

 
—

 
—

 
—

Industrial & warehouse
—

 
—

 
—

 
—

Other
—

 
—

 
—

 
—

Commercial business
3

 
313

 
4

 
313

Subtotal
4

 
$
1,020

 
5

 
$
1,020

Acquired Loans:
 
 
 
 
 
 
 
Real estate—commercial
 

 
 

 
 
 
 
Retail
2

 
$
333

 
2

 
$
333

Gas station & car wash
—

 
—

 
—

 
—

Hotel & motel
—

 
—

 
—

 
—

Industrial & warehouse
—

 
—

 
—

 
—

Other
—

 
—

 
—

 
—

Commercial business
3

 
174

 
3

 
174

Subtotal
5

 
$
507

 
5

 
$
507

 
9

 
$
1,527

 
10

 
$
1,527
Covered Non-performing Assets
The covered nonperforming assets at September 30, 2014 and December 31, 2013 were as follows:
 
September 30, 2014
 
December 31, 2013
 
(In thousands)
Covered loans on nonaccrual status
$
1,873

 
$
236

Covered OREO
348

 
590

     Total covered nonperforming assets
$
2,221

 
$
826

 
 
 
 
Acquired covered loans
$
41,732

 
$
55,088