Loans Receivable and Allowance for Loan Losses (Tables)

12 Months Ended

Dec. 31, 2015

Receivables [Abstract]

Schedule of Loans Receivable

The following table presents loans receivable as of December 31, 2015 and 2014.

	December 31,
	2015			2014
(amounts in thousands)
Commercial:
Multi-family	$	2,909,439		$	2,208,405
Commercial and industrial (including owner occupied commercial real estate)	1,111,400			785,669
Commercial real estate non-owner occupied	956,255			839,310
Construction	87,240			49,718
Total commercial loans	5,064,334			3,883,102
Consumer:
Residential real estate	271,613			297,395
Manufactured housing	113,490			126,731
Other	3,708			4,433
Total consumer loans	388,811			428,559
Total loans receivable	5,453,145			4,311,661
Deferred costs and unamortized premiums, net	334			512
Allowance for loan losses	(35,647		)	(30,932		)
Loans receivable, net of allowance for loan losses	$	5,417,832		$	4,281,241

Loans Receivable by Class and Performance Status

The following tables summarize loans receivable by loan type and performance status as of December 31, 2015 and 2014:

	December 31, 2015
	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)
(amounts in thousands)
Multi-family	$	—	$	—	$	—	$	—	$	2,905,789	$	3,650	$	2,909,439
Commercial and industrial	39		—		39		1,973		799,595		1,552		803,159
Commercial real estate - owner occupied	268		—		268		2,700		292,312		12,961		308,241
Commercial real estate - non-owner occupied	1,997		—		1,997		1,307		940,895		12,056		956,255
Construction	—		—		—		—		87,006		234		87,240
Residential real estate	2,986		—		2,986		2,202		257,984		8,441		271,613
Manufactured housing (5)	3,752		2,805		6,557		2,449		101,132		3,352		113,490
Other consumer	107		—		107		140		3,227		234		3,708
Total	$	9,149	$	2,805	$	11,954	$	10,771	$	5,387,940	$	42,480	$	5,453,145

	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)
(amounts in thousands)
Multi-family	$	—	$	—	$	—	$	—	$	2,204,059	$	4,346	$	2,208,405
Commercial and industrial	884		—		884		2,513		543,245		3,293		549,935
Commercial real estate - owner occupied	—		—		—		2,514		217,187		16,033		235,734
Commercial real estate - non-owner occupied	—		—		—		1,460		822,046		15,804		839,310
Construction	—		—		—		2,325		44,483		2,910		49,718
Residential real estate	1,226		—		1,226		1,855		284,347		9,967		297,395
Manufactured housing (5)	6,324		4,388		10,712		931		111,072		4,016		126,731
Other consumer	147		—		147		135		3,903		248		4,433
Total	$	8,581	$	4,388	$	12,969	$	11,733	$	4,230,342	$	56,617	$	4,311,661

(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 by cash 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, including the effect of the estimated clawback liability for the years ended December 31, 2015, 2014 and 2013.

	Allowance for Loan Losses For The Year Ended December 31,
	2015			2014			2013
(amounts in thousands)
Beginning Balance	$	30,932		$	23,998		$	25,837
Provision for loan losses (1)	16,694			10,058			5,055
Charge-offs	(13,412		)	(4,947		)	(7,338		)
Recoveries	1,433			1,823			444
Ending Balance	$	35,647		$	30,932		$	23,998

Schedule of FDIC Loss Sharing Receivable

	FDIC Loss Sharing Receivable For The Year Ended December 31,
	2015			2014			2013
(amounts in thousands)
Beginning Balance	$	2,320		$	10,046		$	12,343
Increased (decreased) estimated cash flows (2)	(3,872		)	(4,689		)	2,819
Increased estimated cash flows from covered OREO (a)	3,138			—			—
Other activity, net (b)	248			2,409			1,610
Cash receipts from FDIC	(3,917		)	(5,446		)	(6,726		)
Ending Balance	$	(2,083	)	$	2,320		$	10,046
(1)    Provision for loan losses	$	16,694		$	10,058		$	5,055
(2)    Effect attributable to FDIC loss share arrangements	3,872			4,689			(2,819		)
Net amount reported as provision for loan losses	$	20,566		$	14,747		$	2,236

(a) Recorded as a reduction to Other Real Estate Owned expense (a component of non-interest expense).

(b) 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

	December 31, 2015						Year Ended December 31, 2015
	Recorded Investment Net of Charge Offs		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
(amounts in thousands)
With no related allowance recorded:
Multi-family	$	661	$	661	$	—	$	267	$	24
Commercial and industrial	12,056		13,028		—		8,543		891
Commercial real estate - owner occupied	8,317		8,317		—		6,526		454
Commercial real estate - non-owner occupied	4,276		4,276		—		6,605		648
Construction	—		—		—		749		—
Other consumer	48		48		—		42		1
Residential real estate	4,331		4,331		—		2,254		86
Manufactured housing	8,300		8,300		—		5,433		368
With an allowance recorded:
Commercial and industrial	5,565		5,914		1,990		9,331		191
Commercial real estate - owner occupied	12		12		1		15		1
Commercial real estate - non-owner occupied	555		555		148		817		12
Construction	—		—		—		—		—
Other consumer	92		92		50		83		—
Residential real estate	395		395		84		426		2
Total	$	44,608	$	45,929	$	2,273	$	41,091	$	2,678

	December 31, 2014						Year Ended December 31, 2014
	Recorded Investment Net of Charge Offs		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
(amounts in thousands)
With no related allowance recorded:
Commercial and industrial	$	14,600	$	16,122	$	—	$	13,329	$	674
Commercial real estate - owner occupied	12,599		12,744		—		10,204		504
Commercial real estate - non-owner occupied	5,602		5,602				7,770		383
Construction	2,325		2,325		—		2,415		41
Other consumer	21		21		—		26		—
Residential real estate	3,675		5,917		—		4,145		87
Manufactured housing	2,588		2,588		—		2,588		128
With an allowance recorded:
Commercial and industrial	1,923		1,923		857		1,725		28
Commercial real estate - owner occupied	750		750		95		1,184		22
Commercial real estate - non-owner occupied	571		571		170		902		17
Construction	—		—		—		851		—
Other consumer	114		114		32		82		1
Residential real estate	365		365		188		296		1
Total	$	45,133	$	49,042	$	1,342	$	45,517	$	1,886

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 for the years ended December 31, 2015, 2014 and 2013. There were no modifications that involved forgiveness of debt.

	December 31, 2015
	Number of Loans	Recorded Investment
(dollars in thousands)
Extended under forbearance	1	$	183
Interest-rate reductions	161	7,274
Total	162	$	7,457

	December 31, 2014
	Number of Loans	Recorded Investment
(dollars in thousands)
Extended under forbearance	11	$	460
Interest rate reductions	10	620
Total	21	$	1,080

	December 31, 2013
	Number of Loans	Recorded Investment
(dollars in thousands)
Extended under forbearance	—	$	—
Interest rate reductions	14	1,238
Total	14	$	1,238

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

	December 31, 2015
	Number of Loans	Recorded Investment
(dollars in thousands)
Commercial and industrial	3	$	791
Commercial real estate non-owner occupied	1	211
Manufactured housing	156	6,251
Residential real estate	2	204
Total loans	162	$	7,457

	December 31, 2014
	Number of Loans	Recorded Investment
(dollars in thousands)
Manufactured housing	10	$	620
Home equity / other	11	460
Total loans	21	$	1,080

	December 31, 2013
	Number of Loans	Recorded Investment
(dollars in thousands)
Manufactured housing	13	$	1,206
Home equity / other	1	32
Total loans	14	$	1,238

Credit Quality Tables

The following table presents the credit ratings as of December 31, 2015 and 2014 for the loans receivable portfolio.

	December 31, 2015
	Multi-family		Commercial and Industrial		Commercial Real Estate Owner Occupied		Commercial Real Estate Non-Owner Occupied		Construction		Residential Real Estate		Manufactured Housing		Other Consumer		Total
(amounts in thousands)
Pass/Satisfactory	$	2,907,362	$	784,892	$	295,762	$	950,886	$	87,240	$	268,210	$	—	$	—	$	5,294,352
Special Mention	661		14,052		7,840		1,671		—		282		—		—		24,506
Substandard	1,416		4,215		4,639		3,698		—		3,121		—		—		17,089
Performing (1)	—		—		—		—		—		—		104,484		3,461		107,945
Non-performing (2)	—		—		—		—		—		—		9,006		247		9,253
Total	$	2,909,439	$	803,159	$	308,241	$	956,255	$	87,240	$	271,613	$	113,490	$	3,708	$	5,453,145

	December 31, 2014
	Multi-family		Commercial and Industrial		Commercial Real Estate Owner Occupied		Commercial Real Estate Non-Owner Occupied		Construction		Residential Real Estate		Manufactured Housing		Other Consumer		Total
(amounts in thousands)
Pass/Satisfactory	$	2,206,776	$	531,790	$	217,356	$	829,238	$	44,642	$	294,225	$	—	$	—	$	4,124,027
Special Mention	—		14,565		13,056		6,694		—		243		—		—		34,558
Substandard	1,629		3,580		5,322		3,378		5,076		2,927		—		—		21,912
Performing (1)	—		—		—		—		—		—		115,088		4,151		119,239
Non-performing (2)	—		—		—		—		—		—		11,643		282		11,925
Total	$	2,208,405	$	549,935	$	235,734	$	839,310	$	49,718	$	297,395	$	126,731	$	4,433	$	4,311,661

(1) Includes 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.

Schedule of Allowance for Loan Losses

The changes in the allowance for loan losses for the years ended December 31, 2015 and 2014 and the loans and allowance for loan losses by loan class based on impairment evaluation method are as follows. The amounts presented for the provision for loan losses below do not include the effect of changes to estimated benefits resulting from the FDIC loss share arrangements for the covered loans.

Twelve months ended December 31, 2015	Multi-family		Commercial and Industrial			Commercial Real Estate Owner Occupied			Commercial Real Estate Non-Owner Occupied			Construction			Residential Real Estate			Manufactured Housing		Other Consumer			Total
(amounts in thousands)
Beginning Balance, January 1, 2015	$	8,493	$	4,784		$	4,336		$	9,198		$	1,047		$	2,698		$	262	$	114		$	30,932
Charge-offs	—		(11,331		)	(378		)	(327		)	(1,064		)	(276		)	—		(36		)	(13,412		)
Recoveries	—		548			14			0			204			575			—		92			1,433
Provision for loan losses	3,523		14,863			(2,624		)	(451		)	887			301			232		(37		)	16,694
Ending Balance, December 31, 2015	$	12,016	$	8,864		$	1,348		$	8,420		$	1,074		$	3,298		$	494	$	133		$	35,647
Loans:
Individually evaluated for impairment	$	661	$	17,621		$	8,329		$	4,831		$	—		$	4,726		$	8,300	$	140		$	44,608
Collectively evaluated for impairment	2,905,128		783,986			286,951			939,368			87,006			258,446			101,838		3,334			5,366,057
Loans acquired with credit deterioration	3,650		1,552			12,961			12,056			234			8,441			3,352		234			42,480
	$	2,909,439	$	803,159		$	308,241		$	956,255		$	87,240		$	271,613		$	113,490	$	3,708		$	5,453,145
Allowance for loan losses:
Individually evaluated for impairment	$	—	$	1,990		$	1		$	148		$	—		$	84		$	—	$	50		$	2,273
Collectively evaluated for impairment	12,016		6,650			1,347			3,858			1,074			2,141			98		28			27,212
Loans acquired with credit deterioration	—		224			—			4,414			—			1,073			396		55			6,162
	$	12,016	$	8,864		$	1,348		$	8,420		$	1,074		$	3,298		$	494	$	133		$	35,647

Twelve months ended December 31, 2014	Multi-family		Commercial and Industrial			Commercial Real Estate Owner Occupied			Commercial Real Estate Non-Owner Occupied			Construction			Residential Real Estate			Manufactured Housing			Other Consumer			Total
(amounts in thousands)
Beginning Balance, January 1, 2014	$	4,227	$	2,674		$	2,517		$	8,961		$	2,385		$	2,490		$	614		$	130		$	23,998
Charge-offs	—		(1,155		)	(482		)	(1,715		)	(895		)	(667		)	—			(33		)	(4,947		)
Recoveries	—		511			225			801			13			265			—			8			1,823
Provision for loan losses	4,266		2,754			2,076			1,151			(456		)	610			(352		)	9			10,058
Ending Balance, December 31, 2014	$	8,493	$	4,784		$	4,336		$	9,198		$	1,047		$	2,698		$	262		$	114		$	30,932
Loans:
Individually evaluated for impairment	$	—	$	16,523		$	13,349		$	6,173		$	2,325		$	4,040		$	2,588		$	135		$	45,133
Collectively evaluated for impairment	2,204,059		530,119			206,352			817,333			44,483			283,388			120,127			4,050			4,209,911
Loans acquired with credit deterioration	4,346		3,293			16,033			15,804			2,910			9,967			4,016			248			56,617
	$	2,208,405	$	549,935		$	235,734		$	839,310		$	49,718		$	297,395		$	126,731		$	4,433		$	4,311,661
Allowance for loan losses:
Individually evaluated for impairment	$	—	$	857		$	95		$	170		$	—		$	188		$	—		$	32		$	1,342
Collectively evaluated for impairment	8,493		3,765			1,757			6,580			424			1,436			92			28			22,575
Loans acquired with credit deterioration	—		162			2,484			2,448			623			1,074			170			54			7,015
	$	8,493	$	4,784		$	4,336		$	9,198		$	1,047		$	2,698		$	262		$	114		$	30,932

Changes in Accretable Discount Related to Purchased Credit Impaired Loans

The changes in accretable yield related to purchased-credit-impaired loans for the years ended December 31, 2015, 2014 and 2013

were as follows:

	December 31,
	2015			2014			2013
(amounts in thousands)
Accretable yield balance, beginning of period	$	17,606		$	22,557		$	32,174
Accretion to interest income	(2,299		)	(3,201		)	(6,213		)
Reclassification from nonaccretable difference and disposals, net	(2,360		)	(1,750		)	(3,404		)
Accretable yield balance, end of period	$	12,947		$	17,606		$	22,557