Loans Receivable and Allowance for Loan Losses (Tables)

12 Months Ended

Dec. 31, 2014

Receivables [Abstract]

Schedule of Loans Receivable

The following table presents loans receivable as of December 31, 2014 and 2013:

	December 31,
	2014			2013
	(in thousands)
Commercial:
Multi-family	$	2,127,034		$	1,063,459
Commercial real estate	1,132,072			724,752
Commercial and industrial	540,430			292,937
Construction	56,669			31,314
Total Commercial Loans	3,856,205			2,112,462
Consumer:
Residential real estate	285,003			145,188
Manufactured housing	126,731			139,471
Home equity / other	1,541			2,144
Total Consumer Loans	413,275			286,803
Total loan receivable not covered under FDIC loss sharing agreements (1)	4,269,480			2,399,265
Commercial:
Commercial real estate	17,585			28,839
Commercial and industrial	2,235			3,658
Construction	6,705			11,603
Multi-family	372			600
Total Commercial Loans	26,897			44,700
Consumer:
Residential real estate	12,392			18,732
Home equity / other	2,892			3,293
Total Consumer Loans	15,284			22,025
Total loan receivable covered under FDIC loss sharing agreements (1)	42,181			66,725
Total all loans	4,311,661			2,465,990
Deferred (fees) costs and unamortized premiums/(discounts), net	512			(912		)
Allowance for loan losses	(30,932		)	(23,998		)
Loans receivable, net	$	4,281,241		$	2,441,080

(1) Loans that were acquired in the two FDIC assisted transactions and are covered under loss sharing agreements with the FDIC are referred to as “covered” loans throughout these financial statements.

Non-Covered Loans and Covered Loans by Class and Performance Status

Non-Covered Loans

The following table summarizes non-covered loans by loan type and performance status as of December 31, 2014 and 2013:

	December 31, 2014
	30-89 Days Past Due (1)		90 Or More Days Past Due (1)		Total Past Due Still Accruing (1)		Non- Accrual		Current (2)		Purchased- Credit- Impaired Loans (3)		Total Loans (4)
	(in thousands)
Commercial real estate	$	—	$	—	$	—	$	3,450	$	1,101,119	$	27,503	$	1,132,072
Multi-family	—		—		—		—		2,124,448		2,586		2,127,034
Commercial and industrial	366		—		366		2,257		536,326		1,481		540,430
Construction	—		—		—		—		56,510		159		56,669
Residential real estate	1,226		—		1,226		849		273,565		9,363		285,003
Home equity / other	—		—		—		—		1,333		208		1,541
Manufactured housing (5)	6,324		4,388		10,712		931		111,072		4,016		126,731
Total	$	7,916	$	4,388	$	12,304	$	7,487	$	4,204,373	$	45,316	$	4,269,480

	December 31, 2013
	30-89 Days Past Due (1)		90 Or More Days Past Due (1)		Total Past Due Still Accruing (1)		Non- Accrual		Current (2)		Purchased- Credit- Impaired Loans (3)		Total Loans (4)
	(in thousands)
Commercial real estate	$	—	$	—	$	—	$	5,948	$	685,999	$	32,805	$	724,752
Multi-family	—		—		—		—		1,060,137		3,322		1,063,459
Commercial and industrial	10		—		10		4,564		284,767		3,596		292,937
Construction	—		—		—		1,584		29,482		248		31,314
Residential real estate	555		—		555		969		133,158		10,506		145,188
Home equity / other	—		—		—		—		1,728		416		2,144
Manufactured housing (5)	7,921		3,772		11,693		448		122,416		4,914		139,471
Total	$	8,486	$	3,772	$	12,258	$	13,513	$	2,317,687	$	55,807	$	2,399,265

(1) Includes past due loans that are accruing interest because collection is considered probable.

(2) Loans where next payment due is less than 30 days from the report date.

(3) Purchased-credit-impaired loans aggregated into a pool are accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows, and the past due status of the pools, or that of the individual loans within the pools, is not meaningful. Because of the credit impaired nature of the loans, the loans are recorded at a discount reflecting estimated future cash flows and the Bank recognizes interest income on each pool of loans reflecting the estimated yield and passage of time. Such loans are considered to be performing. Purchased-credit-impaired loans that are not in pools accrete interest when the timing and amount of their expected cash flows are reasonably estimable, and are reported as performing loans.

(4) Amounts exclude deferred costs and fees, unamortized premiums and discounts, and the allowance for loan losses.

(5) Manufactured housing loans purchased in 2010 are supported bycash reserves held at the Bank that are used to fund past-due payments when the loan becomes 90 days or more delinquent. Subsequent purchases are subject to varying provisions in the event of borrowers’ delinquencies.

Covered Loans

The following table summarizes covered loans by class and performance status as of December 31, 2014 and 2013:

	December 31, 2014
	30-89 Days Past Due (1)		90 Days Or More Past Due (1)		Total Past Due Still Accruing (1)		Non- Accrual		Current (2)		Purchased- Credit- Impaired Loans (3)		Total Loans (4)
	(in thousands)
Commercial and industrial	$	518	$	—	$	518	$	165	$	361	$	1,191	$	2,235
Multi-family	—		—		—		—		372		—		372
Commercial real estate	—		—		—		615		11,884		5,086		17,585
Construction	—		—		—		2,325		—		4,380		6,705
Residential real estate	—		—		—		1,006		10,782		604		12,392
Home equity / other	147		—		147		135		2,570		40		2,892
Total	$	665	$	—	$	665	$	4,246	$	25,969	$	11,301	$	42,181

	December 31, 2013
	30- 89 Days Past Due (1)		90 Days Or More Past Due (1)		Total Past Due Still Accruing (1)		Non- Accrual		Current (2)		Purchased- Credit- Impaired Loans (3)		Total Loans (4)
	(in thousands)
Commercial and industrial	$	178	$	—	$	178	$	151	$	1,067	$	2,262	$	3,658
Commercial real estate	362		—		362		2,599		17,059		8,819		28,839
Multi-family	—		—		—		—		600		—		600
Construction	—		—		—		2,325		—		9,278		11,603
Residential real estate	90		—		90		564		14,107		3,971		18,732
Home equity / other	56		—		56		11		3,081		145		3,293
Total	$	686	$	—	$	686	$	5,650	$	35,914	$	24,475	$	66,725

(1) Includes past due loans that are accruing interest because collection is considered probable.

(2) Purchased loans in FDIC assisted transactions with no evidence of credit deterioration since origination.

(3) Purchased-credit-impaired loans aggregated into a pool are accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows, and the past due status of the pools, or that of the individual loans within the pools, is not meaningful. Because of the credit impaired nature of the loans, the loans are recorded at a discount reflecting estimated future cash flows and the Bank recognizes interest income on each pool of loans reflecting the estimated yield and passage of time. Such loans are considered to be performing. Purchased-credit-impaired loans that are not in pools accrete interest when the timing and amount of their expected cash flows are reasonably estimable, and are reported as performing loans.

(4) Amounts exclude deferred costs and fees, unamortized premiums and discounts, and the allowance for loan losses.

The following table summarizes non-covered loans by loan type and performance status as of December 31, 2014 and 2013:

	December 31, 2014
	30-89 Days Past Due (1)		90 Or More Days Past Due (1)		Total Past Due Still Accruing (1)		Non- Accrual		Current (2)		Purchased- Credit- Impaired Loans (3)		Total Loans (4)
	(in thousands)
Commercial real estate	$	—	$	—	$	—	$	3,450	$	1,101,119	$	27,503	$	1,132,072
Multi-family	—		—		—		—		2,124,448		2,586		2,127,034
Commercial and industrial	366		—		366		2,257		536,326		1,481		540,430
Construction	—		—		—		—		56,510		159		56,669
Residential real estate	1,226		—		1,226		849		273,565		9,363		285,003
Home equity / other	—		—		—		—		1,333		208		1,541
Manufactured housing (5)	6,324		4,388		10,712		931		111,072		4,016		126,731
Total	$	7,916	$	4,388	$	12,304	$	7,487	$	4,204,373	$	45,316	$	4,269,480

	December 31, 2013
	30-89 Days Past Due (1)		90 Or More Days Past Due (1)		Total Past Due Still Accruing (1)		Non- Accrual		Current (2)		Purchased- Credit- Impaired Loans (3)		Total Loans (4)
	(in thousands)
Commercial real estate	$	—	$	—	$	—	$	5,948	$	685,999	$	32,805	$	724,752
Multi-family	—		—		—		—		1,060,137		3,322		1,063,459
Commercial and industrial	10		—		10		4,564		284,767		3,596		292,937
Construction	—		—		—		1,584		29,482		248		31,314
Residential real estate	555		—		555		969		133,158		10,506		145,188
Home equity / other	—		—		—		—		1,728		416		2,144
Manufactured housing (5)	7,921		3,772		11,693		448		122,416		4,914		139,471
Total	$	8,486	$	3,772	$	12,258	$	13,513	$	2,317,687	$	55,807	$	2,399,265

(1) Includes past due loans that are accruing interest because collection is considered probable.

(2) Loans where next payment due is less than 30 days from the report date.

(3) Purchased-credit-impaired loans aggregated into a pool are accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows, and the past due status of the pools, or that of the individual loans within the pools, is not meaningful. Because of the credit impaired nature of the loans, the loans are recorded at a discount reflecting estimated future cash flows and the Bank recognizes interest income on each pool of loans reflecting the estimated yield and passage of time. Such loans are considered to be performing. Purchased-credit-impaired loans that are not in pools accrete interest when the timing and amount of their expected cash flows are reasonably estimable, and are reported as performing loans.

(4) Amounts exclude deferred costs and fees, unamortized premiums and discounts, and the allowance for loan losses.

(5) Manufactured housing loans purchased in 2010 are supported bycash reserves held at the Bank that are used to fund past-due payments when the loan becomes 90 days or more delinquent. Subsequent purchases are subject to varying provisions in the event of borrowers’ delinquencies.

Schedule of Changes in Allowance for Loans Losses

The following table presents changes in the allowance for loans losses and the FDIC loss sharing receivable for the years ended December 31, 2014, 2013 and 2012.

	Allowance for Loan Losses For The Year Ended December 31,
	2014			2013			2012
	(in thousands)
Beginning Balance	$	23,998		$	25,837		$	15,032
Provision for loan losses (1)	10,058			5,055			16,271
Charge-offs	(4,947		)	(7,338		)	(6,166		)
Recoveries	1,823			444			700
Ending Balance	$	30,932		$	23,998		$	25,837

Schedule of FDIC Loss Sharing Receivable

	FDIC Loss Sharing Receivable For The Year Ended December 31,
	2014			2013			2012
	(in thousands)
Beginning Balance	$	10,046		$	12,343		$	13,077
Increased (decreased) estimated cash flows (2)	(4,689		)	2,819			2,001
Other activity, net (a)	2,409			1,610			3,838
Cash receipts from FDIC	(5,446		)	(6,726		)	(6,573		)
Ending Balance	$	2,320		$	10,046		$	12,343
(1)    Provision for loan losses	$	10,058		$	5,055		$	16,271
(2)    Effect attributable to FDIC loss share arrangements	4,689			(2,819		)	(2,001		)
Net amount reported as provision for loan losses	$	14,747		$	2,236		$	14,270

(a) Includes external costs, such as legal fees, real estate taxes and appraisal expenses, that qualify for reimbursement under loss share arrangements.

Summary of Impaired Loans

The following tables present a summary of impaired loans as of the years ended December 31, 2014 and 2013. Purchased-credit-impaired loans are considered to be performing and are not included in the tables below.

	December 31, 2014
	Recorded Investment Net of Charge Offs		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
	(in thousands)
With no related allowance recorded:
Commercial and industrial	$	13,825	$	15,348	$	—	$	13,329	$	674
Commercial real estate	18,977		19,121		—		17,974		887
Construction	2,325		2,325		—		2,415		41
Home equity / other	21		21		—		26		—
Residential real estate	1,455		3,697		—		1,925		13
With an allowance recorded:
Commercial and industrial	1,833		1,833		818		1,725		28
Commercial real estate	1,410		1,410		304		2,086		39
Construction	—		—		—		851		—
Home equity / other	114		114		32		82		1
Residential real estate	365		365		188		296		1
Total	$	40,325	$	44,234	$	1,342	$	40,709	$	1,684

	December 31, 2013
	Recorded Investment Net of Charge Offs		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
	(in thousands)
With no related allowance recorded:
Commercial and industrial	$	13,097	$	13,159	$	—	$	9,953	$	603
Commercial real estate	14,397		15,249		—		22,475		978
Construction	2,777		4,046		—		6,408		6
Home equity / other	—		—		—		90		8
Residential real estate	2,831		2,831		—		2,523		31
With an allowance recorded:
Commercial and industrial	2,469		3,739		829		1,616		44
Commercial real estate	2,261		3,167		946		7,497		2
Construction	1,132		1,132		351		5,054		—
Home equity / other	64		64		17		48		5
Residential real estate	252		252		199		875		4
Total	$	39,280	$	43,639	$	2,342	$	56,539	$	1,681

Analysis of Loans Modified in Troubled Debt Restructuring by Type of Concession

The following is an analysis of loans modified in a troubled debt restructuring by type of concession at December 31, 2014 and 2013. There were no modifications that involved forgiveness of debt.

	December 31, 2014
	TDRs in Compliance with Their Modified Terms and Accruing Interest		TDRs in Compliance with Their Modified Terms and Not Accruing Interest		Total
	(in thousands)
Extended under forbearance	$	460	$	—	$	460
Multiple extensions resulting from financial difficulty	—		—		—
Interest-rate reductions	231		389		620
Total	$	691	$	389	$	1,080

	December 31, 2013
	TDRs in Compliance with Their Modified Terms and Accruing Interest		TDRs in Compliance with Their Modified Terms and Not Accruing Interest		Total
	(in thousands)
Extended under forbearance	$	—	$	—	$	—
Multiple extensions resulting from financial difficulty	—		—		—
Interest rate reductions	790		448		1,238
Total	$	790	$	448	$	1,238

Summary of Loans and Leases Modified in Troubled Debt Restructurings and Recorded Investments

The following tables provide by class the number of loans modified in troubled debt restructurings and recorded investments at December 31, 2014 and 2013.

	December 31, 2014
	TDRs in Compliance with Their Modified Terms and Accruing Interest			TDRs in Compliance with Their Modified Terms and Not Accruing Interest
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
	(dollars in thousands)
Commercial and industrial	—	$	—	—	$	—
Commercial real estate	—	—		—	—
Construction	—	—		—	—
Manufactured housing	4	231		6	389
Residential real estate	—	—		—	—
Home equity / other	11	460		—	—
Total loans	15	$	691	6	$	389

	December 31, 2013
	TDRs in Compliance with Their Modified Terms and Accruing Interest			TDRs in Compliance with Their Modified Terms and Not Accruing Interest
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
	(dollars in thousands)
Commercial and industrial	—	$	—	—	$	—
Commercial real estate	—	—		—	—
Construction	—	—		—	—
Manufactured housing	8	758		5	448
Residential real estate	—	—		—	—
Home equity / other	1	32		—	—
Total loans	9	$	790	5	$	448

Credit Quality Tables for Covered and Non-Covered Loan Portfolio

The following presents the credit quality tables as of December 31, 2014 and 2013 for the non-covered loan portfolio.

	December 31, 2014
	Commercial and Industrial		Commercial Real Estate		Multi-family		Construction		Residential Real Estate		Home equity / other		Manufactured Housing		Total
	(in thousands)
Pass/Satisfactory	$	524,848	$	1,109,565	$	2,127,034	$	56,669	$	283,240	$	—	$	—	$	4,101,356
Special Mention	13,238		16,002		—		—		243		—		—		29,483
Substandard	2,344		6,505		—		—		1,520		—		—		10,369
Performing (1)	—		—		—		—		—		1,541		115,088		116,629
Non-performing (2)	—		—		—		—		—		—		11,643		11,643
Total	$	540,430	$	1,132,072	$	2,127,034	$	56,669	$	285,003	$	1,541	$	126,731	$	4,269,480

	December 31, 2013
	Commercial and Industrial		Commercial Real Estate		Multi-family		Construction		Residential Real Estate		Home equity / other		Manufactured Housing		Total
	(in thousands)
Pass/Satisfactory	$	277,491	$	703,636	$	1,062,411	$	29,701	$	142,588	$	—	$	—	$	2,215,827
Special Mention	10,175		11,995		905		29		940		—		—		24,044
Substandard	5,271		9,121		143		1,584		1,660		—		—		17,779
Performing (1)	—		—		—		—		—		2,144		127,330		129,474
Non-performing (2)	—		—		—		—		—		—		12,141		12,141
Total	$	292,937	$	724,752	$	1,063,459	$	31,314	$	145,188	$	2,144	$	139,471	$	2,399,265

(1) Includes home equity, consumer, and other installment loans not subject to risk ratings.

(2) Includes loans that are past due and still accruing interest and loans on non-accrual status.

The following presents the credit quality tables as of December 31, 2014 and 2013 for the covered loan portfolio.

	December 31, 2014
	Commercial and Industrial		Commercial Real Estate		Multi-family		Construction		Residential Real Estate		Home equity / other		Total
Pass/Satisfactory	$	1,104	$	10,207	$	372	$	—	$	10,985	$	—	$	22,668
Special Mention	—		5,076		—		—		—		—		5,076
Substandard	1,131		2,302		—		6,705		1,407		—		11,545
Performing	—		—		—		—		—		2,610		2,610
Non-performing (1)	—		—		—		—		—		282		282
Total	$	2,235	$	17,585	$	372	$	6,705	$	12,392	$	2,892	$	42,181

	December 31, 2013
	Commercial and Industrial		Commercial Real Estate		Multi-family		Construction		Residential Real Estate		Home equity / other		Total
Pass/Satisfactory	$	1,582	$	17,803	$	600	$	—	$	14,137	$	—	$	34,122
Special Mention	106		3,107		—		—		455		—		3,668
Substandard	1,970		7,929		—		11,603		4,140		—		25,642
Performing	—		—		—		—		—		3,226		3,226
Non-performing (1)	—		—		—		—		—		67		67
Total	$	3,658	$	28,839	$	600	$	11,603	$	18,732	$	3,293	$	66,725

(1) Includes loans that are past due and still accruing interest and loans on non-accrual status.

Schedule of Allowance for Loan Losses

The changes in the allowance for loan losses for the years ended December 31, 2014 and 2013 and the loans and allowance for loan losses by class and impairment method as of December 31, are presented in the tables that follow. The amounts presented below for the provision for loan losses do not include expected benefits resulting from the FDIC loss share arrangements for the covered loans.

Twelve months ended December 31, 2014	Commercial and Industrial			Commercial Real Estate			Multi-family		Construction			Residential Real Estate			Manufactured Housing			Home equity / other			Total
	(in thousands)
Beginning Balance, January 1, 2014	$	2,674		$	11,478		$	4,227	$	2,385		$	2,490		$	614		$	130		$	23,998
Charge-offs	(1,155		)	(2,197		)	—		(895		)	(667		)	—			(33		)	(4,947		)
Recoveries	511			1,026			—		13			265			—			8			1,823
Provision for loan losses	2,716			3,265			4,266		(456		)	610			(352		)	9			10,058
Ending Balance, December 31, 2014	$	4,746		$	13,572		$	8,493	$	1,047		$	2,698		$	262		$	114		$	30,932
Loans:
Individually evaluated for impairment	$	15,658		$	20,387		$	—	$	2,325		$	1,820		$	—		$	135		$	40,325
Collectively evaluated for impairment	524,335			1,096,681			2,124,820		56,510			285,608			122,715			4,050			4,214,719
Loans acquired with credit deterioration	2,672			32,589			2,586		4,539			9,967			4,016			248			56,617
	$	542,665		$	1,149,657		$	2,127,406	$	63,374		$	297,395		$	126,731		$	4,433		$	4,311,661
Allowance for loan losses:
Individually evaluated for impairment	$	818		$	304		$	—	$	—		$	188		$	—		$	32		$	1,342
Collectively evaluated for impairment	3,766			8,336			8,493		424			1,436			92			28			22,575
Loans acquired with credit deterioration	162			4,932			—		623			1,074			170			54			7,015
	$	4,746		$	13,572		$	8,493	$	1,047		$	2,698		$	262		$	114		$	30,932

Twelve months ended December 31, 2013	Commercial and Industrial			Commercial Real Estate			Multi- family		Construction			Residential Real Estate			Manufactured Housing			Home equity / other			Residual Reserve			Total
	(in thousands)
Beginning Balance, January 1, 2013	$	1,548		$	13,644		$	1,795	$	3,991		$	3,233		$	750		$	154		$	722		$	25,837
Charge-offs	(1,387		)	(3,358		)	—		(2,096		)	(410		)	—			(87		)	—			(7,338		)
Recoveries	391			42			—		—			2			—			9			—			444
Provision for loan losses	2,122			1,150			2,432		490			(335		)	(136		)	54			(722		)	5,055
Ending Balance, December 31, 2013	$	2,674		$	11,478		$	4,227	$	2,385		$	2,490		$	614		$	130		$	—		$	23,998
Loans:
Individually evaluated for impairment	$	15,566		$	16,658		$	—	$	3,909		$	3,083		$	—		$	64		$	—		$	39,280
Collectively evaluated for impairment	275,171			695,309			1,060,736		29,482			146,361			134,557			4,812			—			2,346,428
Loans acquired with credit deterioration	5,858			41,624			3,322		9,526			14,477			4,914			561			—			80,282
	$	296,595		$	753,591		$	1,064,058	$	42,917		$	163,921		$	139,471		$	5,437		$	—		$	2,465,990
Allowance for loan losses:
Individually evaluated for impairment	$	829		$	946		$	—	$	351		$	199		$	—		$	17		$	—		$	2,342
Collectively evaluated for impairment	1,610			5,415			4,227		267			767			84			38			—			12,408
Loans acquired with credit deterioration	235			5,117			—		1,767			1,524			530			75			—			9,248
	$	2,674		$	11,478		$	4,227	$	2,385		$	2,490		$	614		$	130		$	—		$	23,998

Changes in Accretable Discount Related to Purchased Credit Impaired Loans

The following table presents the changes in accretable yield related to purchased-credit-impaired loans:

	December 31,
	2014			2013			2012
	(in thousands)
Accretable yield balance, beginning of period	$	22,557		$	32,174		$	45,358
Accretion to interest income	(3,201		)	(6,213		)	(11,723		)
Reclassification from nonaccretable difference and disposals, net	(1,750		)	(3,404		)	(1,461		)
Accretable yield balance, end of period	$	17,606		$	22,557		$	32,174