Loans Receivable and Allowance for Loan Losses (Tables)

3 Months Ended

Mar. 31, 2016

Loans receivable at March 31, 2016 and December 31, 2015 are summarized as follows (in thousands):



	March 31, 2016			December 31, 2015
Mortgage loans:
Residential	$	1,263,109		1,254,036
Commercial	1,709,054			1,714,923
Multi-family	1,318,143			1,233,792
Construction	309,656			331,649
Total mortgage loans	4,599,962			4,534,400
Commercial loans	1,479,145			1,433,447
Consumer loans	556,056			566,175
Total gross loans	6,635,163			6,534,022
Purchased credit-impaired ("PCI") loans	2,683			3,435
Premiums on purchased loans	6,011			5,740
Unearned discounts	(40		)	(41	)
Net deferred fees	(5,690		)	(5,482	)
Total loans	$	6,638,127		6,537,674

Summary of Aging Loans Receivable by Portfolio Segment and Class

The following tables summarize the aging of loans receivable by portfolio segment and class of loans, excluding PCI loans (in thousands):



	March 31, 2016
	30-59 Days		60-89 Days	Non-accrual	Recorded Investment > 90 days accruing	Total Past Due	Current	Total Loans Receivable
Mortgage loans:
Residential	$	9,002	4,491	14,063	—	27,556	1,235,553	1,263,109
Commercial	1,115		3,351	1,306	—	5,772	1,703,282	1,709,054
Multi-family	47		751	1,240	—	2,038	1,316,105	1,318,143
Construction	—		—	2,517	—	2,517	307,139	309,656
Total mortgage loans	10,164		8,593	19,126	—	37,883	4,562,079	4,599,962
Commercial loans	1,108		—	28,527	—	29,635	1,449,510	1,479,145
Consumer loans	2,762		441	2,996	—	6,199	549,857	556,056
Total gross loans	$	14,034	9,034	50,649	—	73,717	6,561,446	6,635,163



	December 31, 2015
	30-59 Days		60-89 Days	Non-accrual	Recorded Investment > 90 days accruing	Total Past Due	Current	Total Loans Receivable
Mortgage loans:
Residential	$	8,983	5,434	12,031	—	26,448	1,227,588	1,254,036
Commercial	1,732		543	1,263	—	3,538	1,711,385	1,714,923
Multi-family	763		506	742	—	2,011	1,231,781	1,233,792
Construction	—		—	2,351	—	2,351	329,298	331,649
Total mortgage loans	11,478		6,483	16,387	—	34,348	4,500,052	4,534,400
Commercial loans	632		801	23,875	165	25,473	1,407,974	1,433,447
Consumer loans	3,603		1,194	4,109	—	8,906	557,269	566,175
Total gross loans	$	15,713	8,478	44,371	165	68,727	6,465,295	6,534,022

Summary of Loans Receivable by Portfolio Segment and Impairment Method

The following table summarizes loans receivable by portfolio segment and impairment method, excluding PCI loans (in thousands):



	March 31, 2016
	Mortgage loans		Commercial loans	Consumer loans	Total Portfolio Segments
Individually evaluated for impairment	$	26,688	25,186	2,319	54,193
Collectively evaluated for impairment	4,573,274		1,453,959	553,737	6,580,970
Total gross loans	$	4,599,962	1,479,145	556,056	6,635,163



	December 31, 2015
	Mortgage loans		Commercial loans	Consumer loans	Total Portfolio Segments
Individually evaluated for impairment	$	26,743	21,756	2,368	50,867
Collectively evaluated for impairment	4,507,657		1,411,691	563,807	6,483,155
Total gross loans	$	4,534,400	1,433,447	566,175	6,534,022

Summary of Allowance for Loan Losses by Portfolio Segment and Impairment Classification

The allowance for loan losses is summarized by portfolio segment and impairment classification as follows (in thousands):



	March 31, 2016
	Mortgage loans		Commercial loans	Consumer loans	Total Portfolio Segments	Total
Individually evaluated for impairment	$	2,167	2,796	90	5,053	5,053
Collectively evaluated for impairment	28,682		25,459	2,997	57,138	57,138
Total gross loans	$	30,849	28,255	3,087	62,191	62,191



	December 31, 2015
	Mortgage loans		Commercial loans	Consumer loans	Total Portfolio Segments	Total
Individually evaluated for impairment	$	2,086	91	94	2,271	2,271
Collectively evaluated for impairment	30,008		25,738	3,407	59,153	59,153
Total gross loans	$	32,094	25,829	3,501	61,424	61,424

Schedule of Troubled Debt Restructuring

The following tables present the number of loans modified as TDRs during the three months ended March 31, 2016 and 2015 along with their balances immediately prior to the modification date and post-modification as of March 31, 2016 and 2015. There were no loans modified as TDRs during the three months ended March 31, 2106.



	For the three months ended
	March 31, 2016					March 31, 2015
Troubled Debt Restructuring	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
	($ in thousands)
Mortgage loans:
Residential	—	$	—	$	—	2	$	322	$	321
Construction	—	—		—		1	2,600		347
Total mortgage loans	—	—		—		3	2,922		668
Commercial loans	—	—		—		4	6,659		6,898
Consumer loans	—	—		—		1	44		42
Total restructured loans	—	$	—	$	—	8	$	9,625	$	7,608

Schedule of Troubled Debt Restructurings Subsequently Defaulted

The following table presents loans modified as TDRs within the 12 month periods ending March 31, 2016 and 2015, and for which there was a payment default (90 days or more past due) within the respective one year period:



	March 31, 2016			March 31, 2015
Troubled Debt Restructurings Subsequently Defaulted	Number of Loans	Outstanding Recorded Investment		Number of Loans	Outstanding Recorded Investment
	($ in thousands)
Mortgage loans:
Construction	1	$	2,517	—	$	—
Total mortgage loans	1	2,517		—	—
Commercial loans	4	6,809		—	$	—
Total restructured loans	5	$	9,326	—	$	—

Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period

The following table presents information regarding the estimates of the contractually required payments, the cash flows expected to be collected and the estimated fair value of the PCI loans acquired from Team Capital at May 30, 2014 (in thousands):



	May 30, 2014
Contractually required principal and interest	$	12,505
Contractual cash flows not expected to be collected (non-accretable discount)	(6,475		)
Expected cash flows to be collected at acquisition	6,030
Interest component of expected cash flows (accretable yield)	(810		)
Fair value of acquired loans	$	5,220

The following table summarizes the changes in the accretable yield for PCI loans during the three months ended March 31, 2016 and 2015 (in thousands):



	Three months ended March 31,
	2016			2015
Beginning balance	$	676		$	695
Acquisition	—			—
Accretion	(421		)	(198		)
Reclassification from non-accretable discount	248			184
Ending balance	$	503		$	681

Schedule of Allowance for Loan Losses by Portfolio Segment

The activity in the allowance for loan losses by portfolio segment for the three months ended March 31, 2016 and 2015 was as follows (in thousands):



Three months ended March 31,	Mortgage loans			Commercial loans		Consumer loans		Total Portfolio Segments		Unallocated		Total
2016
Balance at beginning of period	$	32,094		25,829		3,501		61,424		—		61,424
Provision charged to operations	(1,193		)	2,958		(265	)	1,500		—		1,500
Recoveries of loans previously charged-off	172			91		316		579		—		579
Loans charged-off	(224		)	(623	)	(465	)	(1,312	)	—		(1,312	)
Balance at end of period	$	30,849		28,255		3,087		62,191		—		62,191

2015
Balance at beginning of period	$	31,977		24,381		4,881		61,239		495		61,734
Provision charged to operations	1,038			(477	)	284		845		(245	)	600
Recoveries of loans previously charged-off	65			215		211		491		—		491
Loans charged-off	(194		)	(422	)	(1,099	)	(1,715	)	—		(1,715	)
Balance at end of period	$	32,886		23,697		4,277		60,860		250		61,110

Summary of Impaired Loans Receivable by Class

The following table presents loans individually evaluated for impairment by class and loan category, excluding PCI loans (in thousands):



	March 31, 2016						December 31, 2015
	Unpaid Principal Balance		Recorded Investment	Related Allowance	Average Recorded Investment	Interest Income Recognized	Unpaid Principal Balance	Recorded Investment	Related Allowance	Average Recorded Investment	Interest Income Recognized
Loans with no related allowance
Mortgage loans:
Residential	$	11,046	8,121	—	8,148	106	12,144	8,799	—	9,079	451
Commercial	—		—	—	—	—	—	—	—	—	—
Multi-family	—		—	—	—	—	—	—	—	—	—
Construction	2,553		2,517	—	2,505	—	2,358	2,351	—	1,170	16
Total	13,599		10,638	—	10,653	106	14,502	11,150	—	10,249	467
Commercial loans	15,198		14,570	—	14,672	—	23,754	21,144	—	21,875	747
Consumer loans	1,543		1,046	—	1,066	24	1,560	1,082	—	1,121	48
Total impaired loans	$	30,340	26,254	—	26,391	130	39,816	33,376	—	33,245	1,262

Loans with an allowance recorded
Mortgage loans:
Residential	$	15,889	14,826	1,989	14,865	147	14,997	14,353	1,901	14,500	505
Commercial	1,224		1,224	178	1,232	15	1,240	1,240	185	1,361	63
Multi-family	—		—	—	—	—	—	—	—	—	—
Construction	—		—	—	—	—	—	—	—	—	—
Total	17,113		16,050	2,167	16,097	162	16,237	15,593	2,086	15,861	568
Commercial loans	12,709		10,616	2,796	10,770	12	612	612	91	807	52
Consumer loans	1,284		1,273	90	1,279	16	1,297	1,286	94	1,312	67
Total impaired loans	$	31,106	27,939	5,053	28,146	190	18,146	17,491	2,271	17,980	687

Total impaired loans
Mortgage loans:
Residential	$	26,935	22,947	1,989	23,013	253	27,141	23,152	1,901	23,579	956
Commercial	1,224		1,224	178	1,232	15	1,240	1,240	185	1,361	63
Multi-family	—		—	—	—	—	—	—	—	—	—
Construction	2,553		2,517	—	2,505	—	2,358	2,351	—	1,170	16
Total	30,712		26,688	2,167	26,750	268	30,739	26,743	2,086	26,110	1,035
Commercial loans	27,907		25,186	2,796	25,442	12	24,366	21,756	91	22,682	799
Consumer loans	2,827		2,319	90	2,345	40	2,857	2,368	94	2,433	115
Total impaired loans	$	61,446	54,193	5,053	54,537	320	57,962	50,867	2,271	51,225	1,949

Summary of Loans Receivable by Credit Quality Risk Rating Indicator

Loans receivable by credit quality risk rating indicator, excluding PCI loans, are as follows (in thousands):



	At March 31, 2016
	Residential		Commercial mortgage	Multi- family	Construction	Total mortgages	Commercial	Consumer	Total loans
Special mention	$	4,491	27,574	—	—	32,065	56,931	441	89,437
Substandard	14,063		12,652	1,991	2,517	31,223	36,005	2,942	70,170
Doubtful	—		—	—	—	—	4,002	—	4,002
Loss	—		—	—	—	—	—	—	—
Total classified and criticized	18,554		40,226	1,991	2,517	63,288	96,938	3,383	163,609
Pass/Watch	1,244,555		1,668,828	1,316,152	307,139	4,536,674	1,382,207	552,673	6,471,554
Total	$	1,263,109	1,709,054	1,318,143	309,656	4,599,962	1,479,145	556,056	6,635,163

	At December 31, 2015
	Residential		Commercial mortgage	Multi- family	Construction	Total mortgages	Commercial	Consumer	Total loans
Special mention	$	5,434	29,363	1,080	—	35,877	76,464	1,194	113,535
Substandard	12,031		19,451	1,248	2,351	35,081	38,654	4,054	77,789
Doubtful	—		—	—	—	—	8	—	8
Loss	—		—	—	—	—	—	—	—
Total classified and criticized	17,465		48,814	2,328	2,351	70,958	115,126	5,248	191,332
Pass/Watch	1,236,571		1,666,109	1,231,464	329,298	4,463,442	1,318,321	560,927	6,342,690
Total	$	1,254,036	1,714,923	1,233,792	331,649	4,534,400	1,433,447	566,175	6,534,022