Loans (Tables)

9 Months Ended

Sep. 30, 2017

Composition of Loan Portfolio

The following table sets forth the composition of the loan portfolio at the dates indicated:

	September 30, 2017						December 31, 2016
	Amount			Percent of Non-Covered Loans Held for Investment			Amount			Percent of Non-Covered Loans Held for Investment
(dollars in thousands)
Non-Covered Loans Held for Investment:
Mortgage Loans:
Multi-family	$	27,145,397			72.43	%	$	26,945,052			72.13	%
Commercial real estate		7,550,387			20.14			7,724,362			20.68
One-to-four family		413,235			1.10			381,081			1.02
Acquisition, development, and construction		385,876			1.03			381,194			1.02
Total mortgage loans held for investment	$	35,494,895			94.70		$	35,431,689			94.85
Other Loans:
Commercial and industrial		1,404,278			3.75			1,341,216			3.59
Lease financing, net of unearned income of $58,870 and $60,278, respectively		577,865			1.54			559,229			1.50
Total commercial and industrial loans (1)		1,982,143			5.29			1,900,445			5.09
Purchased credit-impaired loans		—			—			5,762			0.01
Other		3,666			0.01			18,305			0.05
Total other loans held for investment		1,985,809			5.30			1,924,512			5.15
Total non-covered loans held for investment	$	37,480,704			100.00	%	$	37,356,201			100.00	%
Net deferred loan origination costs		25,495						26,521
Allowance for losses on non-covered loans		(158,918	)					(158,290	)
Non-covered loans held for investment, net	$	37,347,281					$	37,224,432
Covered loans		—						1,698,133
Allowance for losses on covered loans		—						(23,701	)
Covered loans, net	$	—					$	1,674,432
Loans held for sale		104,938						409,152
Total loans, net	$	37,452,219					$	39,308,016

(1) Includes specialty finance loans of $1.4 billion at September 30, 2017 and $1.3 billion at December 31, 2016, and other commercial and industrial loans of $545.5 million and $632.9 million, respectively, at September 30, 2017 and December 31, 2016.

Quality of Non-Covered Loans

The following table presents information regarding the quality of the Company’s non-covered loans held for investment at September 30, 2017:

(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	$	602	$	11,018	$	—	$	11,620	$	27,133,777	$	27,145,397
Commercial real estate		450		4,923		—		5,373		7,545,014		7,550,387
One-to-four family		676		2,179		—		2,855		410,380		413,235
Acquisition, development, and construction		—		6,200		—		6,200		379,676		385,876
Commercial and industrial (1) (2)		3,419		44,640		—		48,059		1,934,084		1,982,143
Other		6		10		—		16		3,650		3,666
Total	$	5,153	$	68,970	$	—	$	74,123	$	37,406,581	$	37,480,704

(1) Includes $3.4 million and $43.4 million of taxi medallion-related loans that were 30 to 89 days past due and 90 days or more past due, respectively.

(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 (excluding non-covered PCI loans) at December 31, 2016:

(in thousands)	Loans 30-89 Days Past Due(1)		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	$	28	$	13,558	$	—	$	13,586	$	26,931,466	$	26,945,052
Commercial real estate		—		9,297		—		9,297		7,715,065		7,724,362
One-to-four family		2,844		9,679		—		12,523		368,558		381,081
Acquisition, development, and construction		—		6,200		—		6,200		374,994		381,194
Commercial and industrial (2) (3)		7,263		16,422		—		23,685		1,876,760		1,900,445
Other		248		1,313		—		1,561		16,744		18,305
Total	$	10,383	$	56,469	$	—	$	66,852	$	37,283,587	$	37,350,439

(1) Excludes $6 thousand and $869 thousand of non-covered PCI loans that were 30 to 89 days past due and 90 days or more past due, respectively.

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

(3) Includes $6.8 million and $15.2 million of taxi medallion loans that were 30 to 89 days past due and 90 days or more past due, respectively.

Non-Covered Loan Portfolio by Credit Quality Indicator

The following table summarizes the Company’s portfolio of non-covered loans held for investment by credit quality indicator at September 30, 2017:

	Mortgage Loans										Other Loans
(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 Loans
Credit Quality Indicator:
Pass	$	27,059,736	$	7,521,387	$	411,056	$	320,081	$	35,312,260	$	1,882,662	$	3,656	$	1,886,318
Special mention		27,884		10,724		—		50,043		88,651		47,628		—		47,628
Substandard		57,777		18,276		2,179		15,752		93,984		51,853		10		51,863
Doubtful		—		—		—		—		—		—		—		—
Total	$	27,145,397	$	7,550,387	$	413,235	$	385,876	$	35,494,895	$	1,982,143	$	3,666	$	1,985,809

(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 (excluding non-covered PCI loans) by credit quality indicator at December 31, 2016:

	Mortgage Loans										Other Loans
(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 Loans
Credit Quality Indicator:
Pass	$	26,754,622	$	7,701,773	$	371,179	$	341,784	$	35,169,358	$	1,771,975	$	16,992	$	1,788,967
Special mention		164,325		12,604		—		33,210		210,139		54,979		—		54,979
Substandard		26,105		9,985		9,902		6,200		52,192		73,491		1,313		74,804
Doubtful		—		—		—		—		—		—		—		—
Total	$	26,945,052	$	7,724,362	$	381,081	$	381,194	$	35,431,689	$	1,900,445	$	18,305	$	1,918,750

(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 the dates indicated:

	September 30, 2017						December 31, 2016
(in thousands)	Accruing		Non-Accrual		Total		Accruing		Non-Accrual		Total
Loan Category:
Multi-family	$	1,457	$	7,608	$	9,065	$	1,981	$	8,755	$	10,736
Commercial real estate		—		373		373		—		1,861		1,861
One-to-four family		—		1,076		1,076		222		1,749		1,971
Commercial and industrial		177		23,974		24,151		1,263		3,887		5,150
Acquisition, development, and construction		8,652		—		8,652
Other		—		—		—		—		202		202
Total	$	10,286	$	33,031	$	43,317	$	3,466	$	16,454	$	19,920

Financial Effects of Troubled Debt Restructurings

The financial effects of the Company’s TDRs for the periods indicated are summarized as follows:

	For the Three Months Ended September 30, 2017
							Weighted Average Interest Rate
(dollars in thousands)	Number of Loans		Pre-Modification Recorded Investment		Post-Modification Recorded Investment		Pre-Modification			Post- Modification			Charge-off Amount		Capitalized Interest
Loan Category:
Acquisition, development, and construction		2	$	8,652	$	8,652		5.50	%		5.50	%	$	—	$	—
Commercial and industrial		22		18,002		7,620		3.18			2.91			6,350		—
Total		24	$	26,654	$	16,272							$	6,350	$	—
	For the Three Months Ended September 30, 2016
							Weighted Average Interest Rate
(dollars in thousands)	Number of Loans		Pre-Modification Recorded Investment		Post-Modification Recorded Investment		Pre-Modification			Post- Modification			Charge-off Amount		Capitalized Interest
Loan Category:
One-to-four family		—	$	—	$	—		—	%		—	%	$	—	$	—
Commercial and industrial		2		1,314		1,273		3.22			3.22			41		—
Total		2	$	1,314	$	1,273							$	41	$	—

The financial effects of the Company’s TDRs for the periods indicated are summarized as follows:

	For the Nine Months Ended September 30, 2017
							Weighted Average Interest Rate
(dollars in thousands)	Number of Loans		Pre-Modification Recorded Investment		Post-Modification Recorded Investment		Pre-Modification			Post- Modification			Charge-off Amount		Capitalized Interest
Loan Category:
One-to-four family		4	$	810	$	990		5.93	%		2.21	%	$	—	$	12
Acquisition, development, and construction		2		8,652		8,652		5.50			5.50			—		—
Commercial and industrial		52		48,716		23,673		3.36			3.29			11,079		—
Total		58	$	58,178	$	33,315							$	11,079	$	12
	For the Nine Months Ended September 30, 2016
							Weighted Average Interest Rate
(dollars in thousands)	Number of Loans		Pre-Modification Recorded Investment		Post-Modification Recorded Investment		Pre-Modification			Post- Modification			Charge-off Amount		Capitalized Interest
Loan Category:
Multi-family		1	$	9,340	$	8,303		4.63	%		4.00	%	$	—	$	—
One-to-four family		3		477		628		3.62			3.07			—		6
Commercial and industrial		4		2,712		2,560		3.26			3.21			89		—
Total		8	$	12,529	$	11,491							$	89	$	6

Covered Loans Acquired in Acquisitions of AmTrust Bank ("Am Trust") and Desert Hills

The following table presents the carrying value of covered loans which were acquired in the acquisitions of AmTrust and Desert Hills as of December 31, 2016.

(dollars in thousands)	Amount		Percent of Covered Loans
Loan Category:
One-to-four family	$	1,609,635		94.8	%
Other loans		88,498		5.2
Total covered loans	$	1,698,133		100.0	%

Changes in Accretable Yield for Covered Loans

In the nine months ended September 30, 2017, changes in the accretable yield for covered loans were as follows:

(in thousands)	Accretable Yield
Balance at beginning of period	$	647,470
Accretion		(72,842	)
Reclassification to non-accretable difference for the six months ended June 30, 2017		(11,381	)
Changes in expected cash flows due to the sale of the covered loan portfolio		(563,247	)
Balance at end of period	$	—

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

The following table presents information regarding the Company’s covered loans at December 31, 2016 that were 90 days or more past due:

(in thousands)
Covered Loans 90 Days or More Past Due:
One-to-four family	$	124,820
Other loans		6,645
Total covered loans 90 days or more past due	$	131,465

The following table presents information regarding the Company’s covered loans at December 31, 2016 that were 30 to 89 days past due:

(in thousands)
Covered Loans 30-89 Days Past Due:
One-to-four family	$	21,112
Other loans		1,536
Total covered loans 30-89 days past due	$	22,648