Loans (Tables)

9 Months Ended

Sep. 30, 2015

Composition of Loan Portfolio

The following table sets forth the composition of the loan portfolio at September 30, 2015 and December 31, 2014:

	September 30, 2015				December 31, 2014
(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	$	24,635,567		72.19%	$	23,831,846		72.21%
Commercial real estate		7,642,994		22.40		7,634,320		23.13
Acquisition, development, and construction		294,768		0.86		258,116		0.78
One-to-four family		102,317		0.30		138,915		0.42
Total mortgage loans held for investment	$	32,675,646		95.75		31,863,197		96.54
Other Loans:
Commercial and industrial		1,130,707		3.31		900,551		2.73
Lease financing, net of unearned income of $31,708 and $18,913		279,507		0.82		208,670		0.63
Total commercial and industrial loans		1,410,214		4.13		1,109,221		3.36
Purchased credit-impaired loans (1)		12,976		0.04		--		--
Other		26,069		0.08		31,943		0.10
Total other loans held for investment		1,449,259		4.25		1,141,164		3.46
Total non-covered loans held for investment	$	34,124,905		100.00%	$	33,004,361		100.00%
Net deferred loan origination costs		21,660				20,595
Allowance for losses on non-covered loans		(146,045)				(139,857)
Non-covered loans held for investment, net	$	34,000,520			$	32,885,099
Covered loans		2,149,055				2,428,622
Allowance for losses on covered loans		(37,632)				(45,481)
Covered loans, net	$	2,111,423			$	2,383,141
Loans held for sale		380,613				379,399
Total loans, net	$	36,492,556			$	35,647,639

(1) Includes $941,000 of multi-family loans; $9.9 million of commercial real estate loans; $1.0 million of acquisition, development, and construction loans; $965,000 of commercial and industrial loans; and $163,000 of other loans that were included in “Covered loans” at December 31, 2014.

Quality of Non-Covered Loans

The following table presents information regarding the quality of the Company’s non-covered loans held for investment (excluding non-covered PCI loans) at September 30, 2015:

(in thousands)	Loans  30-89 Days  Past Due		Non-  Accrual  Loans(1)		Loans  90 Days or More  Delinquent and Still Accruing Interest		Total  Past Due  Loans		Current    Loans		Total Loans Receivable
Multi-family	$	1,670	$	15,524	$	--	$	17,194	$	24,618,373	$	24,635,567
Commercial real estate		4,544		20,034		--		24,578		7,618,416		7,642,994
One-to-four family		860		11,445		--		12,305		90,012		102,317
Acquisition, development, and construction		--		525		--		525		294,243		294,768
Commercial and industrial(2)		--		6,221		--		6,221		1,403,993		1,410,214
Other		513		1,493		--		2,006		24,063		26,069
Total	$	7,587	$	55,242	$	--	$	62,829	$	34,049,100	$	34,111,929

(1) Excludes $1.1 million of non-covered PCI loans that were 90 days or more past due.

(2) Includes lease financing receivables, all of which were current.

The following table presents information regarding the quality of the Company’s non-covered loans held for investment at December 31, 2014:

(in thousands)	Loans  30-89 Days  Past Due		Non-  Accrual  Loans		Loans  90 Days or More  Delinquent and Still Accruing Interest		Total  Past Due  Loans		Current    Loans		Total Loans Receivable
Multi-family	$	464	$	31,089	$	--	$	31,553	$	23,800,293	$	23,831,846
Commercial real estate		1,464		24,824		--		26,288		7,608,032		7,634,320
One-to-four family		3,086		11,032		--		14,118		124,797		138,915
Acquisition, development, and construction		--		654		--		654		257,462		258,116
Commercial and industrial(1)		530		8,382		--		8,912		1,100,309		1,109,221
Other		648		969		--		1,617		30,326		31,943
Total	$	6,192	$	76,950	$	--	$	83,142	$	32,921,219	$	33,004,361

(1) Includes lease financing receivables, all of which were current.

Non-Covered Loan Portfolio by Credit Quality Indicator

The following table summarizes the Company’s portfolio of non-covered loans held for investment, excluding non-covered PCI loans, by credit quality indicator at September 30, 2015:

(in thousands)	Multi-Family		Commercial   Real Estate		One-to-Four  Family		Acquisition,  Development, and  Construction		Total   Mortgage   Loans		Commercial  and Industrial(1)		Other		Total Other Loan Segment
Credit Quality Indicator:
Pass	$	24,597,041	$	7,618,479	$	90,872	$	293,492	$	32,599,884	$	1,390,799	$	24,576	$	1,415,375
Special mention		6,322		3,327		--		--		9,649		14,050		--		14,050
Substandard		32,204		21,188		11,445		1,276		66,113		5,365		1,493		6,858
Doubtful		--		--		--		--		--		--		--		--
Total	$	24,635,567	$	7,642,994	$	102,317	$	294,768	$	32,675,646	$	1,410,214	$	26,069	$	1,436,283

(1) Includes lease financing receivables, all of which were classified as “pass.”

The following table summarizes the Company’s portfolio of non-covered loans held for investment by credit quality indicator at December 31, 2014:

(in thousands)	Multi-Family		Commercial   Real Estate		One-to-Four  Family		Acquisition,  Development, and  Construction		Total   Mortgage   Loans		Commercial  and Industrial(1)		Other		Total Other Loan Segment
Credit Quality Indicator:
Pass	$	23,777,569	$	7,591,223	$	127,883	$	256,868	$	31,753,543	$	1,083,173	$	30,974	$	1,114,147
Special mention		6,798		9,123		--		--		15,921		17,032		--		17,032
Substandard		47,479		33,974		11,032		1,248		93,733		9,016		969		9,985
Doubtful		--		--		--		--		--		--		--		--
Total	$	23,831,846	$	7,634,320	$	138,915	$	258,116	$	31,863,197	$	1,109,221	$	31,943	$	1,141,164

(1) Includes lease financing receivables, all of which were classified as “pass.”

Information Regarding Troubled Debt Restructurings

The following table presents information regarding the Company’s TDRs as of September 30, 2015 and December 31, 2014:

	September 30, 2015						December 31, 2014
(in thousands)	Accruing		Non-Accrual		Total		Accruing		Non-Accrual		Total
Loan Category:
Multi-family	$	2,025	$	3,261	$	5,286	$	7,697	$	17,879	$	25,576
Commercial real estate		6,053		12,372		18,425		8,139		9,939		18,078
One-to-four family		--		885		885		--		260		260
Acquisition, development, and construction		--		525		525		--		654		654
Commercial and industrial		--		1,163		1,163		--		1,195		1,195
Other		--		218		218		--		--		--
Total	$	8,078	$	18,424	$	26,502	$	15,836	$	29,927	$	45,763

Financial Effects of Troubled Debt Restructurings

The financial effects of the Company’s TDRs for the nine months ended September 30, 2015 are summarized as follows:

	For the Nine Months Ended September 30, 2015
(dollars in thousands)			Weighted Average Interest Rate
	Number of Loans		Pre- Modification			Post- Modification			Charge-off Amount		Capitalized Interest
Loan Category:
Commercial real estate		3		7.49	%		7.49	%		--		--
One-to-four family		3		2.97			2.41			--		3
Multi-family		1		5.63			--			--		--
Other		2		4.58			2.00			--		2
Total		9								--		5

Covered Loans Acquired in AmTrust and Desert Hills Acquisitions

The following table presents the carrying value of covered loans acquired in the AmTrust and Desert Hills acquisitions as of September 30, 2015:

(dollars in thousands)	Amount			Percent of Covered Loans
Loan Category:
One-to-four family		$	1,993,640		92.8%
All other loans			155,415		7.2
Total covered loans		$	2,149,055		100.0%

Changes in Accretable Yield for Covered Loans

In the nine months ended September 30, 2015, changes in the accretable yield for covered loans were as follows:

(in thousands)	Accretable Yield
Balance at beginning of period	$	1,037,023
Reclassification to non-accretable difference		(75,479)
Accretion		(103,148)
Balance at end of period	$	858,396

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

The following table presents information regarding the Company’s covered loans that were 90 days or more past due at September 30, 2015 and December 31, 2014:

(in thousands)	September 30, 2015		December 31, 2014
Covered Loans 90 Days or More Past Due:
One-to-four family	$	135,297	$	148,967
Other loans		6,879		8,922
Total covered loans 90 days or more past due	$	142,176	$	157,889

The following table presents information regarding the Company’s covered loans that were 30 to 89 days past due at September 30, 2015 and December 31, 2014:

(in thousands)	September 30, 2015		December 31, 2014
Covered Loans 30-89 Days Past Due:
One-to-four family	$	35,403	$	37,680
Other loans		2,879		4,016
Total covered loans 30-89 days past due	$	38,282	$	41,696