LOANS AND LEASES AND ALLOWANCE FOR LOAN AND LEASE LOSSES (Tables)

3 Months Ended

Mar. 31, 2017

The following table presents the balances in the Company’s loans and leases portfolio as of the dates indicated:



	Non-Traditional Mortgages (NTM)		Traditional Loans		Total NTM and Traditional Loans		PCI Loans		Total Loans and Leases Receivable
	($ in thousands)
March 31, 2017
Commercial:
Commercial and industrial	$	—	$	1,580,969	$	1,580,969	$	4,687	$	1,585,656
Commercial real estate	—		749,440		749,440		1,152		750,592
Multi-family	—		1,449,715		1,449,715		—		1,449,715
SBA	—		73,433		73,433		2,607		76,040
Construction	—		142,164		142,164		—		142,164
Lease financing	—		285		285		—		285
Consumer:
Single family residential mortgage	728,796		1,029,341		1,758,137		131,253		1,889,390
Green Loans (HELOC) - first liens	85,665		—		85,665		—		85,665
Green Loans (HELOC) - second liens	3,549		—		3,549		—		3,549
Other consumer	—		122,265		122,265		—		122,265
Total loans and leases	$	818,010	$	5,147,612	$	5,965,622	$	139,699	$	6,105,321
Allowance for loan and lease losses									(42,736		)
Loans and leases receivable, net									$	6,062,585
December 31, 2016
Commercial:
Commercial and industrial	$	—	$	1,518,200	$	1,518,200	$	4,760	$	1,522,960
Commercial real estate	—		728,777		728,777		1,182		729,959
Multi-family	—		1,365,262		1,365,262		—		1,365,262
SBA	—		71,168		71,168		2,672		73,840
Construction	—		125,100		125,100		—		125,100
Lease financing	—		379		379		—		379
Consumer:
Single family residential mortgage	794,120		1,091,829		1,885,949		133,212		2,019,161
Green Loans (HELOC) - first liens	87,469		—		87,469		—		87,469
Green Loans (HELOC) - second liens	3,559		—		3,559		—		3,559
Other consumer	—		107,063		107,063		—		107,063
Total loans and leases	$	885,148	$	5,007,778	$	5,892,926	$	141,826	$	6,034,752
Allowance for loan and lease losses									(40,444		)
Loans and leases receivable, net									$	5,994,308

Non Traditional Mortgages Portfolio

The following table presents the composition of the NTM portfolio as of the dates indicated:



	March 31, 2017						December 31, 2016
	Count	Amount			Percent		Count	Amount			Percent
	($ in thousands)
Green Loans (HELOC) - first liens	104	$	85,665		10.5	%	107	$	87,469		9.9	%
Interest-only - first liens	480	725,005			88.6	%	522	784,364			88.6	%
Negative amortization	11	3,791			0.5	%	22	9,756			1.1	%
Total NTM - first liens	595	814,461			99.6	%	651	881,589			99.6	%
Green Loans (HELOC) - second liens	12	3,549			0.4	%	12	3,559			0.4	%
Total NTM - second liens	12	3,549			0.4	%	12	3,559			0.4	%
Total NTM loans	607	$	818,010		100.0	%	663	$	885,148		100.0	%
Total loans and leases		$	6,105,321					$	6,034,752
% of NTM to total loans and leases		13.4		%				14.7		%

Risk Categories for Loans and Leases

The following table presents the Company’s NTM Green Loans first lien portfolio at March 31, 2017 by FICO scores that were obtained during the quarter ended March 31, 2017, comparing to the FICO scores for those same loans that were obtained during the quarter ended December 31, 2016:



	March 31, 2017
	By FICO Scores Obtained During the Quarter Ended March 31, 2017					By FICO Scores Obtained During the Quarter Ended December 31, 2016					Change
	Count	Amount		Percent		Count	Amount		Percent		Count		Amount			Percent
	($ in thousands)
FICO Score
800+	16	$	11,841	13.8	%	16	$	9,371	11.0	%	—		$	2,470		2.8	%
700-799	57	43,049		50.3	%	52	41,742		49.5	%	5		1,307			0.8	%
600-699	22	21,933		25.6	%	28	27,332		31.2	%	(6	)	(5,399		)	(5.6	)%
<600	2	3,422		4.0	%	1	1,800		2.1	%	1		1,622			1.9	%
No FICO	7	5,420		6.3	%	7	5,420		6.2	%	—		—			0.1	%
Totals	104	$	85,665	100.0	%	104	$	85,665	100.0	%	—		$	—		—	%

The table below presents the Company’s SFR NTM first lien portfolio by LTV ratios as of the dates indicated:



	Green					Interest Only					Negative Amortization					Total
	Count	Amount		Percent		Count	Amount		Percent		Count	Amount		Percent		Count	Amount		Percent
	($ in thousands)
March 31, 2017
< 61%	56	$	50,161	58.6	%	187	$	321,875	44.4	%	8	$	2,717	71.7	%	251	$	374,753	46.0	%
61-80%	41	30,451		35.5	%	278	390,019		53.8	%	3	1,074		28.3	%	322	421,544		51.7	%
81-100%	7	5,053		5.9	%	7	10,017		1.4	%	—	—		—	%	14	15,070		1.9	%
> 100%	—	—		—	%	8	3,094		0.4	%	—	—		—	%	8	3,094		0.4	%
Total	104	$	85,665	100.0	%	480	$	725,005	100.0	%	11	$	3,791	100.0	%	595	$	814,461	100.0	%
December 31, 2016
< 61%	45	$	39,105	44.7	%	196	$	336,744	42.9	%	16	$	7,043	72.2	%	257	$	382,892	43.4	%
61-80%	52	41,732		47.7	%	306	434,269		55.4	%	6	2,713		27.8	%	364	478,714		54.3	%
81-100%	10	6,632		7.6	%	8	8,828		1.1	%	—	—		—	%	18	15,460		1.8	%
> 100%	—	—		—	%	12	4,523		0.6	%	—	—		—	%	12	4,523		0.5	%
Total	107	$	87,469	100.0	%	522	$	784,364	100.0	%	22	$	9,756	100.0	%	651	$	881,589	100.0	%

The following table presents the risk categories for total loans and leases as of March 31, 2017:



	March 31, 2017
	Pass		Special Mention		Substandard		Doubtful		Not-Rated		Total
	(In thousands)
NTM loans:
Single family residential mortgage	$	726,854	$	1,474	$	468	$	—	$	—	$	728,796
Green Loans (HELOC) - first liens	83,657		2,008		—		—		—		85,665
Green Loans (HELOC) - second liens	3,549		—		—		—		—		3,549
Total NTM loans	814,060		3,482		468		—		—		818,010
Traditional loans and leases:
Commercial:
Commercial and industrial	1,563,102		11,638		6,154		75		—		1,580,969
Commercial real estate	746,554		1,340		1,546		—		—		749,440
Multi-family	1,449,715		—		—		—		—		1,449,715
SBA	72,816		—		617		—		—		73,433
Construction	140,636		—		1,528		—		—		142,164
Lease financing	188		—		97		—		—		285
Consumer:
Single family residential mortgage	1,017,308		1,080		10,953		—		—		1,029,341
Other consumer	120,738		46		1,481		—		—		122,265
Total traditional loans and leases	5,111,057		14,104		22,376		75		—		5,147,612
PCI loans:
Commercial:
Commercial and industrial	—		—		4,687		—		—		4,687
Commercial real estate	1,152		—		—		—		—		1,152
SBA	1,251		—		1,356		—		—		2,607
Consumer:
Single family residential mortgage	—		—		—		—		131,253		131,253
Total PCI loans	2,403		—		6,043		—		131,253		139,699
Total	$	5,927,520	$	17,586	$	28,887	$	75	$	131,253	$	6,105,321

The following table presents the risk categories for total loans and leases as of December 31, 2016:



	December 31, 2016
	Pass		Special Mention		Substandard		Doubtful		Not-Rated		Total
	(In thousands)
NTM loans:
Single family residential mortgage	$	792,179	$	1,474	$	467	$	—	$	—	$	794,120
Green Loans (HELOC) - first liens	85,460		2,009		—		—		—		87,469
Green Loans (HELOC) - second liens	3,559		—		—		—		—		3,559
Total NTM loans	881,198		3,483		467		—		—		885,148
Traditional loans and leases:
Commercial:
Commercial and industrial	1,508,636		844		8,642		78		—		1,518,200
Commercial real estate	725,861		1,350		1,566		—		—		728,777
Multi-family	1,365,262		—		—		—		—		1,365,262
SBA	70,508		—		660		—		—		71,168
Construction	123,571		1,529		—		—		—		125,100
Lease financing	270		—		109		—		—		379
Consumer:
Single family residential mortgage	1,080,664		950		10,215		—		—		1,091,829
Other consumer	106,632		48		383		—		—		107,063
Total traditional loans and leases	4,981,404		4,721		21,575		78		—		5,007,778
PCI loans:
Commercial:
Commercial and industrial	—		4,056		704		—		—		4,760
Commercial real estate	1,182		—		—		—		—		1,182
SBA	1,268		—		1,404		—		—		2,672
Consumer:
Single family residential mortgage	—		—		—		—		133,212		133,212
Total PCI loans	2,450		4,056		2,108		—		133,212		141,826
Total	$	5,865,052	$	12,260	$	24,150	$	78	$	133,212	$	6,034,752

Allowance for Loan and Lease Losses and Recorded Investment, Excluding Accrued Interest, in Loans

The following table presents a summary of activity in the ALLL for the periods indicated:



	Three Months Ended
	March 31,
	2017			2016
	(In thousands)
Balance at beginning of period	$	40,444		$	35,533
Loans and leases charged off	(357		)	(102		)
Recoveries of loans and leases previously charged off	66			93
Provision for loan and lease losses	2,583			321
Balance at end of period	$	42,736		$	35,845

The following table presents the activity and balance in the ALLL and the recorded investment, excluding accrued interest, in loans and leases based on the impairment methodology as of or for the three months ended March 31, 2017:



	Commercial and Industrial			Commercial Real Estate			Multi- family			SBA		Construction		Lease Financing			Single Family Residential Mortgage			Other Consumer			Total
	(In thousands)
ALLL:
Balance at December 31, 2016	$	7,584		$	5,467		$	11,376		$	939	$	2,015	$	6		$	12,075		$	982		$	40,444
Charge-offs	(250		)	—			—			—		—		—			(81		)	(26		)	(357		)
Recoveries	—			—			—			43		—		19			1			3			66
Provision	3,554			(924		)	(347		)	164		1,003		(20		)	(755		)	(92		)	2,583
Balance at March 31, 2017	$	10,888		$	4,543		$	11,029		$	1,146	$	3,018	$	5		$	11,240		$	867		$	42,736
Individually evaluated for impairment	$	—		$	—		$	—		$	—	$	—	$	—		$	250		$	—		$	250
Collectively evaluated for impairment	10,888			4,538			11,029			1,127		3,018		5			10,853			867			42,325
Acquired with deteriorated credit quality	—			5			—			19		—		—			137			—			161
Total ending ALLL balance	$	10,888		$	4,543		$	11,029		$	1,146	$	3,018	$	5		$	11,240		$	867		$	42,736
Loans:
Individually evaluated for impairment	$	—		$	—		$	—		$	—	$	1,528	$	—		$	10,984		$	883		$	13,395
Collectively evaluated for impairment	1,580,969			749,440			1,449,715			73,433		140,636		285			1,832,818			124,931			5,952,227
Acquired with deteriorated credit quality	4,687			1,152			—			2,607		—		—			131,253			—			139,699
Total ending loan balances	$	1,585,656		$	750,592		$	1,449,715		$	76,040	$	142,164	$	285		$	1,975,055		$	125,814		$	6,105,321



	Commercial and Industrial		Commercial Real Estate			Multi- family		SBA		Construction			Lease Financing			Single Family Residential Mortgage			Other Consumer			Total
	(In thousands)
ALLL:
Balance at December 31, 2015	$	5,850	$	4,252		$	6,012	$	683	$	1,530		$	2,195		$	13,854		$	1,157		$	35,533
Charge-offs	—		—			—		—		—			(102		)	—			—			(102		)
Recoveries	—		—			—		31		—			61			—			1			93
Provision	196		(283		)	472		192		(10		)	456			(584		)	(118		)	321
Balance at March 31, 2016	$	6,046	$	3,969		$	6,484	$	906	$	1,520		$	2,610		$	13,270		$	1,040		$	35,845
Individually evaluated for impairment	$	29	$	—		$	—	$	—	$	—		$	—		$	1,347		$	—		$	1,376
Collectively evaluated for impairment	5,959		3,857			6,484		887		1,520			2,610			11,906			1,040			34,263
Acquired with deteriorated credit quality	58		112			—		19		—			—			17			—			206
Total ending ALLL balance	$	6,046	$	3,969		$	6,484	$	906	$	1,520		$	2,610		$	13,270		$	1,040		$	35,845
Loans:
Individually evaluated for impairment	$	4,493	$	299		$	—	$	—	$	—		$	—		$	34,296		$	294		$	39,382
Collectively evaluated for impairment	978,649		705,176			1,021,097		68,700		68,241			212,836			1,576,150			108,861			4,739,710
Acquired with deteriorated credit quality	819		8,218			—		2,940		—			—			671,999			—			683,976
Total ending loan balances	$	983,961	$	713,693		$	1,021,097	$	71,640	$	68,241		$	212,836		$	2,282,445		$	109,155		$	5,463,068

Loans and Leases Individually Evaluated for Impairment by Class of Loans and Leases

The following table presents loans and leases individually evaluated for impairment by class of loans and leases as of the dates indicated. The recorded investment, excluding accrued interest, presents customer balances net of any partial charge-offs recognized on the loans and leases and net of any deferred fees and costs and any purchase premium or discount.



	March 31, 2017						December 31, 2016
	Unpaid Principal Balance		Recorded Investment		ALLL		Unpaid Principal Balance		Recorded Investment		ALLL
	(In thousands)
With no related ALLL recorded:
Commercial:
Commercial and industrial	$	—	$	—	$	—	$	2,478	$	2,429	$	—
Construction	1,528		1,528		—		—		—		—
Consumer:
Single family residential mortgage	9,097		9,124		—		8,865		8,887		—
Other consumer	884		883		—		294		294		—
With an ALLL recorded:
Consumer:
Single family residential mortgage	1,894		1,860		250		1,772		1,742		243
Total	$	13,403	$	13,395	$	250	$	13,409	$	13,352	$	243

The following table presents information on impaired loans and leases, disaggregated by class, for the periods indicated:



	Three Months Ended
	Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Recognized
	(In thousands)
March 31, 2017
Commercial:
Construction	$	1,528	$	—	$	—
Consumer:
Single family residential mortgage	11,055		43		43
Other consumer	889		2		1
Total	$	13,472	$	45	$	44
March 31, 2016
Commercial:
Commercial and industrial	$	4,596	$	63	$	88
Commercial real estate	305		10		10
Consumer:
Single family residential mortgage	34,324		286		265
Other consumer	294		2		2
Total	$	39,519	$	361	$	365

Composition of Nonaccrual Loans and Leases

The following table presents nonaccrual loans and leases, and loans past due 90 days or more and still accruing as of the dates indicated:



	March 31, 2017						December 31, 2016
	NTM Loans		Traditional Loans and Leases		Total		NTM Loans		Traditional Loans and Leases		Total
	(In thousands)
Loans past due 90 days or more and still accruing	$	—	$	—	$	—	$	—	$	—	$	—
Nonaccrual loans and leases:
The Company maintains specific allowances for these loans of $0 at March 31, 2017 and December 31, 2016	468		15,754		16,222		467		14,475		14,942

The following table presents the composition of nonaccrual loans and leases as of the dates indicated:



	March 31, 2017						December 31, 2016
	NTM Loans		Traditional Loans and Leases		Total		NTM Loans		Traditional Loans and Leases		Total
	(In thousands)
Commercial:
Commercial and industrial	$	—	$	1,506	$	1,506	$	—	$	3,544	$	3,544
SBA	—		583		583		—		619		619
Construction	—		1,528		1,528		—		—		—
Lease financing	—		97		97		—		109		109
Consumer:
Single family residential mortgage	468		10,559		11,027		467		9,820		10,287
Other consumer	—		1,481		1,481		—		383		383
Total nonaccrual loans and leases	$	468	$	15,754	$	16,222	$	467	$	14,475	$	14,942

Aging of Recorded Investment in Past Due Loans and Leases

The following table presents the aging of the recorded investment in past due loans and leases as of March 31, 2017, excluding accrued interest receivable (which is not considered to be material), by class of loans and leases:



	March 31, 2017
	30 - 59 Days Past Due		60 - 89 Days Past Due		Greater than 89 Days Past due		Total Past Due		Current		Total
	(In thousands)
NTM loans:
Single family residential mortgage	$	805	$	—	$	468	$	1,273	$	727,523	$	728,796
Green Loans (HELOC) - first liens	—		—		—		—		85,665		85,665
Green Loans (HELOC) - second liens	—		—		—		—		3,549		3,549
Total NTM loans	805		—		468		1,273		816,737		818,010
Traditional loans and leases:
Commercial:
Commercial and industrial	978		4,390		1,011		6,379		1,574,590		1,580,969
Commercial real estate	—		—		—		—		749,440		749,440
Multi-family	—		—		—		—		1,449,715		1,449,715
SBA	1,386		—		463		1,849		71,584		73,433
Construction	—		—		1,528		1,528		140,636		142,164
Lease financing	—		—		97		97		188		285
Consumer:
Single family residential mortgage	10,174		3,527		5,544		19,245		1,010,096		1,029,341
Other consumer	1,325		11		691		2,027		120,238		122,265
Total traditional loans and leases	13,863		7,928		9,334		31,125		5,116,487		5,147,612
PCI loans:
Commercial:
Commercial and industrial	4,004		—		154		4,158		529		4,687
Commercial real estate	—		—		—		—		1,152		1,152
SBA	365		—		556		921		1,686		2,607
Consumer:
Single family residential mortgage	9,783		2,258		4,233		16,274		114,979		131,253
Total PCI loans	14,152		2,258		4,943		21,353		118,346		139,699
Total	$	28,820	$	10,186	$	14,745	$	53,751	$	6,051,570	$	6,105,321

The following table presents the aging of the recorded investment in past due loans and leases as of December 31, 2016, excluding accrued interest receivable (which is not considered to be material), by class of loans and leases:



	December 31, 2016
	30 - 59 Days Past Due		60 - 89 Days Past Due		Greater than 89 Days Past due		Total Past Due		Current		Total
	(In thousands)
NTM loans:
Single family residential mortgage	$	4,193	$	—	$	467	$	4,660	$	789,460	$	794,120
Green Loans (HELOC) - first liens	—		—		—		—		87,469		87,469
Green Loans (HELOC) - second liens	—		—		—		—		3,559		3,559
Total NTM loans	4,193		—		467		4,660		880,488		885,148
Traditional loans and leases:
Commercial:
Commercial and industrial	412		463		3,385		4,260		1,513,940		1,518,200
Commercial real estate	—		—		—		—		728,777		728,777
Multi-family	—		—		—		—		1,365,262		1,365,262
SBA	15		2		482		499		70,669		71,168
Construction	1,529		—		—		1,529		123,571		125,100
Lease financing	—		—		109		109		270		379
Consumer:
Single family residential mortgage	11,225		1,345		9,393		21,963		1,069,866		1,091,829
Other consumer	10,023		933		382		11,338		95,725		107,063
Total traditional loans and leases	23,204		2,743		13,751		39,698		4,968,080		5,007,778
PCI loans:
Commercial:
Commercial and industrial	—		—		156		156		4,604		4,760
Commercial real estate	—		—		—		—		1,182		1,182
SBA	300		232		328		860		1,812		2,672
Consumer:
Single family residential mortgage	10,483		4,063		2,093		16,639		116,573		133,212
Total PCI loans	10,783		4,295		2,577		17,655		124,171		141,826
Total	$	38,180	$	7,038	$	16,795	$	62,013	$	5,972,739	$	6,034,752

Troubled Debt Restructurings

The following table summarizes the pre-modification and post-modification balances of the new TDRs for the periods indicated:



	Three Months Ended
	Number of Loans	Pre- Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
	($ in thousands)
March 31, 2017
Consumer:
Single family residential mortgage	2	$	1,266	$	1,273
Total	2	$	1,266	$	1,273
March 31, 2016
Consumer:
Single family residential mortgage	38	$	9,173	$	9,173
Total	38	$	9,173	$	9,173

The following table summarizes the TDRs by modification type for the periods indicated:



	Three Months Ended
	Modification Type
	Change in Principal Payments and Interest Rates			Change in Principal Payments			Change in Interest Rates			Total
	Count	Amount		Count	Amount		Count	Amount		Count	Amount
	($ in thousands)
March 31, 2017
Consumer:
Single family residential mortgage	1	$	130	1	$	1,143	—	$	—	2	$	1,273
Total	1	$	130	1	$	1,143	—	$	—	2	$	1,273
March 31, 2016
Consumer:
Single family residential mortgage	32	$	8,220	5	$	875	1	$	78	38	$	9,173
Total	32	$	8,220	5	$	875	1	$	78	38	$	9,173

TDR loans consist of the following as of the dates indicated:



	March 31, 2017						December 31, 2016
	NTM Loans		Traditional Loans		Total		NTM Loans		Traditional Loans		Total
	(In thousands)
Consumer:
Single family residential mortgage	487		2,435		2,922		853		1,440		2,293
Green Loans (HELOC) - first liens	2,237		—		2,237		2,240		—		2,240
Green Loans (HELOC) - second liens	294		—		294		294		—		294
Total	$	3,018	$	2,435	$	5,453	$	3,387	$	1,440	$	4,827

Summary of Significant Activities

The following table presents loans and leases purchased, sold and transferred from (to) held-for-sale by portfolio segment, excluding loans held-for-sale, loans and leases acquired in business combinations and PCI loans for the periods indicated:



	Three Months Ended
	Purchases		Sales		Transfers from (to) Held-For-Sale
	(In thousands)
March 31, 2017
Commercial:
Multi-family	$	—	$	—	$	(6,583	)
Consumer:
Single family residential mortgage	—		—		(236,510		)
Total	$	—	$	—	$	(243,093	)
March 31, 2016
Commercial:
Lease financing	$	31,048	$	—	$	—
Consumer:
Single family residential mortgage	—		—		(56,664		)
Total	$	31,048	$	—	$	(56,664	)

Carrying Amount of Purchased Credit Impaired Loans and Leases

The following table presents the outstanding balance and carrying amount of PCI loans as of the dates indicated:



	March 31, 2017				December 31, 2016
	Outstanding Balance		Carrying Amount		Outstanding		Carrying
	(In thousands)
Commercial:
Commercial and industrial	$	4,974	$	4,687	$	5,029	$	4,760
Commercial real estate	1,592		1,152		1,613		1,182
SBA	3,733		2,607		3,771		2,672
Consumer:
Single family residential mortgage	150,939		131,253		153,867		133,212
Total	$	161,238	$	139,699	$	164,280	$	141,826

Accretable Yield, or Income Expected to be Collected

The following table presents a summary of accretable yield, or income expected to be collected, for the periods indicated:



	Three Months Ended
	March 31,
	2017			2016
	(In thousands)
Balance at beginning of period	$	41,181		$	205,549
Accretion of income	(1,949		)	(9,708		)
Changes in expected cash flows	(225		)	(18,663		)
Disposals	(316		)	(1,289		)
Balance at end of period	$	38,691		$	175,889