Loans (Tables)

9 Months Ended

Sep. 30, 2012

Composition of Loan Portfolio

The following table sets forth the composition of the loan portfolio at September 30, 2012 and December 31, 2011:

	September 30, 2012				December 31, 2011
(dollars in thousands)	Amount		Percent of Non-Covered  Loans Held for  Investment		Amount		Percent of Non-Covered  Loans Held for  Investment
Non-Covered Loans Held for Investment:
Mortgage Loans:
Multi-family		$18,468,229		68.88%		$17,430,628		68.28%
Commercial real estate		7,193,194		26.83		6,855,244		26.85
Acquisition, development, and construction		383,695		1.43		445,671		1.75
One-to-four family		131,115		0.49		127,361		0.50
Total mortgage loans held for investment		26,176,233		97.63		$24,858,904		97.38
Other Loans:
Commercial and industrial		582,572		2.17		599,986		2.35
Other		54,256		0.20		69,907		0.27
Total other loans held for investment		636,828		2.37		669,893		2.62
Total non-covered loans held for investment		26,813,061		100.00%		$25,528,797		100.00%
Net deferred loan origination costs		9,789				4,021
Allowance for losses on non-covered loans		(139,015)				(137,290)
Non-covered loans held for investment, net		26,683,835				$25,395,528
Covered loans		3,400,624				3,753,031
Allowance for losses on covered loans		(54,591)				(33,323)
Total covered loans, net		3,346,033				$  3,719,708
Loans held for sale		1,211,767				1,036,918
Total loans, net		$31,241,635				$30,152,154

Quality of Non-Covered Loans held for Investment

The following table presents information regarding the quality of the Company’s non-covered loans held for investment at September 30, 2012:

(in thousands)	30-89 Days  Past Due			Non-  Accrual			90 Days or More  Delinquent and Still Accruing Interest			Total Past  Due			Current			Total Loans Receivable
Multi-family		$	33,644		$	139,293		$	--		$	172,937		$	18,295,292		$	18,468,229
Commercial real estate			4,631			54,641			--			59,272			7,133,922			7,193,194
Acquisition, development, and construction			--			24,813			--			24,813			358,882			383,695
One-to-four family			3,563			9,487			--			13,050			118,065			131,115
Commercial and industrial			5,831			17,342			--			23,173			559,399			582,572
Other			1,233			992			--			2,225			52,031			54,256
Total		$	48,902		$	246,568		$	--		$	295,470		$	26,517,591		$	26,813,061

The following table presents information regarding the quality of the Company’s non-covered loans held for investment at December 31, 2011:

(in thousands)	30-89 Days  Past Due			Non-  Accrual			90 Days or More Delinquent and Still Accruing Interest			Total Past  Due			Current			Total Loans Receivable
Multi-family		$	46,702		$	205,064		$	--		$	251,766		$	17,178,862		$	17,430,628
Commercial real estate			53,798			68,032			--			121,830			6,733,414			6,855,244
Acquisition, development, and construction			6,520			29,886			--			36,406			409,265			445,671
One-to-four family			2,712			11,907			--			14,619			112,742			127,361
Commercial and industrial			1,223			8,827			--			10,050			589,936			599,986
Other			702			2,099			--			2,801			67,106			69,907
Total		$	111,657		$	325,815		$	--		$	437,472		$	25,091,325		$	25,528,797

Non-Covered Loan Portfolio by Credit Quality Indicator

The following table summarizes the Company’s non-covered loan portfolio by credit quality indicator at September 30, 2012:

(in thousands)	Multi-Family		Commercial   Real Estate			Acquisition,  Development, and  Construction			One-to-Four  Family			Total   Mortgage   Segment			Commercial  and Industrial			Other			Total Other Loan Segment
Credit Quality Indicator:
Pass		$18,170,382		$	7,089,632		$	350,651		$	124,100		$	25,734,765		$	540,616		$	53,263		$	593,879
Special mention		54,093			31,223			5,900			301			91,517			19,772			--			19,772
Substandard		242,263			72,339			24,061			6,714			345,377			22,184			993			23,177
Doubtful		1,491			--			3,083			--			4,574			--			--			--
Total		$18,468,229		$	7,193,194		$	383,695		$	131,115		$	26,176,233		$	582,572		$	54,256		$	636,828

The following table summarizes the Company’s non-covered loan portfolio by credit quality indicator at December 31, 2011:

(in thousands)	Multi-Family		Commercial   Real Estate			Acquisition,  Development, and  Construction			One-to-Four  Family			Total   Mortgage   Segment			Commercial  and Industrial			Other			Total Other Loan Segment
Credit Quality Indicator:
Pass		$17,135,461		$	6,704,824		$	399,811		$	118,293		$	24,358,389		$	570,442		$	67,808		$	638,250
Special mention		58,134			64,802			6,489			--			129,425			13,234			--			13,234
Substandard		237,033			85,618			39,371			9,068			371,090			15,928			2,099			18,027
Doubtful		--			--			--			--			--			382			--			382
Total		$17,430,628		$	6,855,244		$	445,671		$	127,361		$	24,858,904		$	599,986		$	69,907		$	669,893

Information Regarding Troubled Debt Restructurings

The following table presents information regarding the Company’s TDRs as of September 30, 2012 and December 31, 2011:

	September 30, 2012						December 31, 2011
(in thousands)	Accruing		Non-Accrual		Total		Accruing		Non-Accrual		Total
Loan Category:
Multi-family		$74,825		$117,683		$192,508		$60,454		$166,248		$226,702
Commercial real estate		37,473		39,881		77,354		3,389		39,054		42,443
Acquisition, development, and construction		--		11,734		11,734		--		15,886		15,886
Commercial and industrial		1,523		--		1,523		--		667		667
One-to-four family		--		1,101		1,101		--		1,411		1,411
Total		$113,821		$170,399		$284,220		$63,843		$223,266		$287,109

Financial Effects of Troubled Debt Restructurings Granted

The financial effects of TDRs granted in the three and nine months ended September 30, 2012 were as follows:

	Financial Effect of Modifications
	For the Three Months Ended September 30, 2012											For the Nine Months Ended September 30, 2012
	Weighted Average Interest Rate											Weighted Average Interest Rate
(dollars in thousands)	Number of Loans		Pre- Modification			Post- Modification			Charge-off Amount			Number of Loans		Pre- Modification			Post- Modification			Charge-off Amount
Loan Category:
Multi-family		--		--	%		--	%		$	--		4		6.19	%		5.34	%		$	188
Commercial real estate		--		--			--				--		3		6.30			4.50				--
Acquisition, development, and construction		--		--			--				--		--		--			--				--
Other		--		--			--				--		--		--			--				--
Total/average		--		--	%		--	%		$	--		7		6.28	%		4.71	%		$	188

Covered Loans Acquired in AmTrust and Desert Hills Acquisitions

The following table presents the balance of covered loans acquired in the AmTrust and Desert Hills acquisitions as of September 30, 2012:

(dollars in thousands)	Amount			Percent of Covered Loans
Loan Category:
One-to-four family		$	3,069,827		90.3%
All other loans			330,797		9.7
Total covered loans		$	3,400,624		100.0%

Changes in Accretable Yield for Covered Loans

Changes in the accretable yield for covered loans were as follows for the nine months ended September 30, 2012:

(in thousands)	Accretable Yield
Balance at beginning of period		$1,365,978
Reclassification to non-accretable difference		(172,775)
Accretion		(135,531)
Balance at end of period		$1,057,672

Covered Loans Thirty to Eighty Nine Days, Ninety Days or More Past Due

The following table presents information regarding the Company’s covered loans 90 days or more past due at September 30, 2012 and December 31, 2011:

(in thousands)	September 30, 2012		December 31, 2011
Covered Loans 90 Days or More Past Due:
One-to-four family		$297,293		$314,821
Other loans		19,844		32,621
Total covered loans 90 days or more past due		$317,137		$347,442

The following table presents information regarding the Company’s covered loans that were 30 to 89 days past due at September 30, 2012 and December 31, 2011:

(in thousands)	September 30, 2012		December 31, 2011
Covered Loans 30-89 Days Past Due:
One-to-four family		$84,471		$103,495
Other loans		7,449		8,494
Total covered loans 30-89 days past due		$91,920		$111,989