Loans Receivable and Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2016

Receivables [Abstract]

Schedule of Loans Receivable

The following table presents loans receivable as of September 30, 2016 and December 31, 2015:

	September 30, 2016			December 31, 2015
(amounts in thousands)
Commercial:
Multi-family	$	3,150,298		$	2,909,439
Commercial and industrial (including owner occupied commercial real estate)	1,296,721			1,111,400
Commercial real estate non-owner occupied	1,151,099			956,255
Construction	83,835			87,240
Total commercial loans	5,681,953			5,064,334
Consumer:
Residential real estate	227,122			271,613
Manufactured housing	104,404			113,490
Other	3,420			3,708
Total consumer loans	334,946			388,811
Total loans receivable	6,016,899			5,453,145
Deferred costs and unamortized premiums, net	96			334
Allowance for loan losses	(37,897		)	(35,647		)
Loans receivable, net of allowance for loan losses	$	5,979,098		$	5,417,832

Loans Receivable by Loan Type and Performance Status

The following tables summarize loans receivable by loan type and performance status as of September 30, 2016 and December 31, 2015:

	September 30, 2016
	30-89 Days Past Due (1)		90 Days Or More Past Due(1)		Total Past Due (1)		Non- Accrual		Current (2)		Purchased- Credit- Impaired Loans (3)		Total Loans (4)
(amounts in thousands)
Multi-family	$	—	$	—	$	—	$	—	$	3,147,521	$	2,777	$	3,150,298
Commercial and industrial	—		—		—		4,900		899,200		1,150		905,250
Commercial real estate - owner occupied	—		—		—		2,071		376,482		12,918		391,471
Commercial real estate - non-owner occupied	—		—		—		2,152		1,142,024		6,923		1,151,099
Construction	—		—		—		—		83,835		—		83,835
Residential real estate	1,182		—		1,182		2,238		215,766		7,936		227,122
Manufactured housing (5)	2,958		2,543		5,501		1,992		93,784		3,127		104,404
Other consumer	16		—		16		43		3,118		243		3,420
Total	$	4,156	$	2,543	$	6,699	$	13,396	$	5,961,730	$	35,074	$	6,016,899
	December 31, 2015
	30-89 Days Past Due (1)		90 Days Or More Past Due(1)		Total Past Due (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

(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 subject to 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 Allowance for Loan Losses

The changes in the allowance for loan losses for the three and nine months ended September 30, 2016 and 2015 and the loans and allowance for loan losses by loan class based on impairment evaluation method as of September 30, 2016 and December 31, 2015 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 for periods prior to the termination of the FDIC loss sharing arrangements.

Three Months Ended September 30, 2016	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)
Ending Balance, June 30, 2016	$	12,368		$	10,370		$	1,582	$	8,483		$	1,209		$	3,535		$	440		$	110		$	38,097
Charge-offs	—			(237		)	—		(140		)	—			(43		)	—			(246		)	(666		)
Recoveries	—			62			—		—			8			298			—			10			378
Provision for loan losses	(695		)	832			305		3			(168		)	(411		)	(18		)	240			88
Ending Balance, September 30, 2016	$	11,673		$	11,027		$	1,887	$	8,346		$	1,049		$	3,379		$	422		$	114		$	37,897
Nine Months Ended September 30, 2016
Ending Balance, December 31, 2015	$	12,016		$	8,864		$	1,348	$	8,420		$	1,074		$	3,298		$	494		$	133		$	35,647
Charge-offs	—			(774		)	—		(140		)	—			(456		)	—			(478		)	(1,848		)
Recoveries	—			173			—		8			465			299			—			10			955
Provision for loan losses	(343		)	2,764			539		58			(490		)	238			(72		)	449			3,143
Ending Balance, September 30, 2016	$	11,673		$	11,027		$	1,887	$	8,346		$	1,049		$	3,379		$	422		$	114		$	37,897
As of September 30, 2016
Loans:
Individually evaluated for impairment	$	4,538		$	30,275		$	10,523	$	10,659		$	—		$	3,999		$	9,091		$	42		$	69,127
Collectively evaluated for impairment	3,142,983			873,825			368,030		1,133,517			83,835			215,187			92,186			3,135			5,912,698
Loans acquired with credit deterioration	2,777			1,150			12,918		6,923			—			7,936			3,127			243			35,074
	$	3,150,298		$	905,250		$	391,471	$	1,151,099		$	83,835		$	227,122		$	104,404		$	3,420		$	6,016,899
Allowance for loan losses:
Individually evaluated for impairment	$	195		$	3,119		$	—	$	27		$	—		$	63		$	—		$	—		$	3,404
Collectively evaluated for impairment	11,478			7,771			1,857		4,581			1,049			2,515			95			57			29,403
Loans acquired with credit deterioration	—			137			30		3,738			—			801			327			57			5,090
	$	11,673		$	11,027		$	1,887	$	8,346		$	1,049		$	3,379		$	422		$	114		$	37,897

Three Months Ended September 30, 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)
Ending Balance, June 30, 2015	$	8,734	$	14,062		$	3,651		$	6,310		$	844		$	3,455		$	316	$	119		$	37,491
Charge-offs	—		(5,559		)	(35		)	(82		)	—			(256		)	—		—			(5,932		)
Recoveries	—		248			13			—			8			—			—		6			275
Provision for loan losses	472		1,678			(370		)	(109		)	258			(5		)	70		(5		)	1,989
Ending Balance, September 30, 2015	$	9,206	$	10,429		$	3,259		$	6,119		$	1,110		$	3,194		$	386	$	120		$	33,823
Nine Months Ended September 30, 2015
Ending Balance, December 31, 2014	$	8,493	$	4,784		$	4,336		$	9,198		$	1,047		$	2,698		$	262	$	114		$	30,932
Charge-offs	—		(6,793		)	(378		)	(327		)	(1,064		)	(282		)	—		(36		)	(8,880		)
Recoveries	—		351			14			—			195			572			—		91			1,223
Provision for loan losses	713		12,087			(713		)	(2,752		)	932			206			124		(49		)	10,548
Ending Balance, September 30, 2015	$	9,206	$	10,429		$	3,259		$	6,119		$	1,110		$	3,194		$	386	$	120		$	33,823
As of December 31, 2015
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

Summary of Recorded Investment Net Charge-Offs, Unpaid Principal Balance and Related Allowance for Impaired Loans

The following tables present the recorded investment (net of charge-offs), unpaid principal balance, and related allowance by loan type for loans that are individually evaluated for impairment as of September 30, 2016 and December 31, 2015 and the average recorded investment and interest income recognized for the three and nine months ended September 30, 2016 and 2015. Purchased-credit-impaired loans are considered to be performing and are not included in the tables below.

	September 30, 2016						Three Months Ended September 30, 2016				Nine Months Ended September 30, 2016
	Recorded Investment Net of Charge offs		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
(amounts in thousands)
With no related allowance recorded:
Multi-family	$	4,159	$	4,159	$	—	$	2,080	$	38	$	1,205	$	38
Commercial and industrial	22,885		23,919		—		21,859		406		18,681		879
Commercial real estate owner occupied	10,523		10,523		—		10,182		201		9,651		403
Commercial real estate non-owner occupied	10,539		10,678		—		7,983		118		6,081		133
Other consumer	42		42		—		43		—		45		—
Residential real estate	3,799		3,842		—		3,835		39		4,039		83
Manufactured housing	9,091		9,091		—		8,971		9		8,785		290
With an allowance recorded:
Multi-family	379		379		195		383		5		290		15
Commercial and industrial	7,390		7,390		3,119		7,561		43		7,256		155
Commercial real estate owner occupied	—		—		—		—		—		6		—
Commercial real estate non-owner occupied	120		120		27		328		2		438		6
Other consumer	—		—		—		—		—		36		—
Residential real estate	200		200		63		300		—		421		—
Manufactured housing	—		—		—		—		—		—		—
Total	$	69,127	$	70,343	$	3,404	$	63,525	$	861	$	56,934	$	2,002

	December 31, 2015						Three Months Ended September 30, 2015				Nine Months Ended September 30, 2015
	Recorded Investment Net of Charge offs		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
(amounts in thousands)
With no related allowance recorded:
Multi-family	$	661	$	661	$	—	$	203	$	5	$	101	$	5
Commercial and industrial	12,056		13,028		—		7,597		102		9,179		500
Commercial real estate owner occupied	8,317		8,317		—		6,431		103		7,617		288
Commercial real estate non-owner occupied	4,276		4,276		—		7,803		137		6,937		514
Construction	—		—		—		335		—		1,330		—
Other consumer	48		48		—		49		1		35		1
Residential real estate	4,331		4,331		—		4,044		20		3,910		62
Manufactured housing	8,300		8,300		—		7,061		131		4,855		339
With an allowance recorded:
Commercial and industrial	5,565		5,914		1,990		12,640		26		8,420		332
Commercial real estate - owner occupied	12		12		1		13		66		200		66
Commercial real estate non-owner occupied	555		555		148		664		4		821		9
Other consumer	92		92		50		93		—		88		—
Residential real estate	395		395		84		474		1		419		1
Total	$	44,608	$	45,929	$	2,273	$	47,407	$	596	$	43,912	$	2,117

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 three and nine months ended September 30, 2016 and 2015. There were no modifications that involved forgiveness of debt.

	Three Months Ended September 30, 2016			Three Months Ended September 30, 2015
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
(dollars in thousands)
Extensions of maturity	—	$	—	1	$	183
Interest-rate reductions	10	533		21	705
Total	10	$	533	22	$	888

	Nine Months Ended September 30, 2016			Nine Months Ended September 30, 2015
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
(dollars in thousands)
Extensions of maturity	3	$	1,995	1	$	183
Interest-rate reductions	49	1,932		131	5,747
Total	52	$	3,927	132	$	5,930

Summary of Loans Modified in Troubled Debt Restructurings and Related Recorded Investment

The following table provides, by loan type, the number of loans modified in troubled debt restructurings, and the related recorded investment, during the three and nine months ended September 30, 2016 and 2015.

	Three Months Ended September 30, 2016			Three Months Ended September 30, 2015
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
(dollars in thousands)
Commercial and industrial	—	$	—	1	$	183
Commercial real estate non-owner occupied	—	—		—	—
Manufactured housing	10	533		20	699
Residential real estate	—	—		1	6
Total loans	10	$	533	22	$	888

	Nine Months Ended September 30, 2016			Nine Months Ended September 30, 2015
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
(dollars in thousands)
Commercial and industrial	1	$	76	2	$	527
Commercial real estate non-owner occupied	1	1,844		1	209
Manufactured housing	47	1,716		127	4,993
Residential real estate	3	291		2	201
Total loans	52	$	3,927	132	$	5,930

Changes in Accretable Yield Related to Purchased-credit-impaired Loans

The changes in accretable yield related to purchased-credit-impaired loans for the three and nine months ended September 30, 2016 and 2015 were as follows:

	Three Months Ended September 30,
	2016			2015
(amounts in thousands)
Accretable yield balance as of June 30,	$	11,165		$	14,302
Accretion to interest income	(460		)	(551		)
Reclassification from nonaccretable difference and disposals, net	107			10
Accretable yield balance as of September 30,	$	10,812		$	13,761
	Nine Months Ended September 30,
	2016			2015
(amounts in thousands)
Accretable yield balance as of December 31,	$	12,947		$	17,606
Accretion to interest income	(1,429		)	(1,790		)
Reclassification from nonaccretable difference and disposals, net	(706		)	(2,055		)
Accretable yield balance as of September 30,	$	10,812		$	13,761

Schedule of Changes in Allowance for Loan Losses

	Allowance for Loan Losses
	Nine months ended September 30,
(amounts in thousands)	2016			2015
Ending balance as of December 31,	$	35,647		$	30,932
Provision for loan losses (1)	3,143			10,548
Charge-offs	(1,848		)	(8,880		)
Recoveries	955			1,223
Ending balance as of September 30,	$	37,897		$	33,823

The following table presents changes in the allowance for loan losses and the FDIC loss sharing receivable, including the effects of the estimated clawback liability and the termination agreement, for the three and nine months ended September 30, 2016 and 2015.

	Allowance for Loan Losses
	Three Months Ended September 30,
(amounts in thousands)	2016			2015
Ending balance as of June 30,	$	38,097		$	37,491
Provision for loan losses (1)	88			1,989
Charge-offs	(666		)	(5,932		)
Recoveries	378			275
Ending balance as of September 30,	$	37,897		$	33,823

Schedule of FDIC Loss Sharing Receivable

	FDIC Loss Sharing Receivable/ Clawback Liability
	Three Months Ended September 30,
(amounts in thousands)	2016			2015
Ending balance as of June 30,	$	(1,381	)	$	(1,455	)
Increased (decreased) estimated cash flows (2)	—			(105		)
Increased estimated cash flows from covered OREO (a)	—			3,138
Other activity, net (b)	—			61
Cash payments to (receipts from) the FDIC	1,381			(1,437		)
Ending balance as of September 30,	$	—		$	202
(1) Provision for loan losses	$	88		$	1,989
(2) Effect attributable to FDIC loss share arrangements	—			105
Net amount reported as provision for loan losses	$	88		$	2,094

(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, which qualify for reimbursement under loss sharing agreements.

	FDIC Loss Sharing Receivable/ Clawback Liability
	Nine months ended September 30,
(amounts in thousands)	2016			2015
Ending balance as of December 31,	$	(2,083	)	$	2,320
Increased (decreased) estimated cash flows (2)	289			(3,845		)
Increased estimated cash flows from covered OREO (a)	—			3,138
Other activity, net (b)	(255		)	529
Cash payments to (receipts from) the FDIC	2,049			(1,940		)
Ending balance as of September 30,	$	—		$	202
(1) Provision for loan losses	$	3,143		$	10,548
(2) Effect attributable to FDIC loss share arrangements	(289		)	3,845
Net amount reported as provision for loan losses	$	2,854		$	14,393

(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, which qualify for reimbursement under loss sharing agreements.

Credit Ratings of Covered and Non-Covered Loan Portfolio

The following tables present the credit ratings of loans receivable as of September 30, 2016 and December 31, 2015.

	September 30, 2016
	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	$	3,145,089	$	874,940	$	377,917	$	1,140,415	$	83,835	$	224,113	$	—	$	—	$	5,846,309
Special Mention	379		23,147		9,032		8,544		—		—		—		—		41,102
Substandard	4,830		7,163		4,522		2,140		—		3,009		—		—		21,664
Performing (1)	—		—		—		—		—		—		96,911		3,361		100,272
Non-performing (2)	—		—		—		—		—		—		7,493		59		7,552
Total	$	3,150,298	$	905,250	$	391,471	$	1,151,099	$	83,835	$	227,122	$	104,404	$	3,420	$	6,016,899

	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

(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 nonaccrual status.