Loans Receivable and Allowance for Loan Losses

The following tables set forth the composition of our loans receivable portfolio, and an aging analysis by accruing and non-accrual loans, by segment and class at the dates indicated.



	At December 31, 2015
	Past Due
	30-59		60-89		90 Days		Total
(In Thousands)	Days		Days		or More		Past Due		Current		Total
Accruing loans:
Mortgage loans (gross):
Residential:
Full documentation interest-only	$	10,045	$	2,382	$	—	$	12,427	$	401,486	$	413,913
Full documentation amortizing	40,151		10,346		332		50,829		4,602,940		4,653,769
Reduced documentation interest-only	7,254		2,321		—		9,575		266,084		275,659
Reduced documentation amortizing	20,135		4,369		—		24,504		527,566		552,070
Total residential	77,585		19,418		332		97,335		5,798,076		5,895,411
Multi-family	1,662		2,069		—		3,731		4,013,541		4,017,272
Commercial real estate	246		1,689		—		1,935		813,640		815,575
Total mortgage loans	79,493		23,176		332		103,001		10,625,257		10,728,258
Consumer and other loans (gross):
Home equity and other consumer	2,358		502		—		2,860		151,554		154,414
Commercial and industrial	—		—		—		—		91,171		91,171
Total consumer and other loans	2,358		502		—		2,860		242,725		245,585
Total accruing loans	$	81,851	$	23,678	$	332	$	105,861	$	10,867,982	$	10,973,843
Non-accrual loans:
Mortgage loans (gross):
Residential:
Full documentation interest-only	$	1,182	$	—	$	11,359	$	12,541	$	5,834	$	18,375
Full documentation amortizing	3,579		603		32,535		36,717		7,480		44,197
Reduced documentation interest-only	257		579		15,285		16,121		11,451		27,572
Reduced documentation amortizing	2,238		365		14,322		16,925		12,935		29,860
Total residential	7,256		1,547		73,501		82,304		37,700		120,004
Multi-family	725		623		2,441		3,789		3,044		6,833
Commercial real estate	241		—		572		813		3,126		3,939
Total mortgage loans	8,222		2,170		76,514		86,906		43,870		130,776
Consumer and other loans (gross):
Home equity and other consumer	—		—		6,405		6,405		—		6,405
Commercial and industrial	—		—		703		703		—		703
Total consumer and other loans	—		—		7,108		7,108		—		7,108
Total non-accrual loans	$	8,222	$	2,170	$	83,622	$	94,014	$	43,870	$	137,884
Total loans:
Mortgage loans (gross):
Residential:
Full documentation interest-only	$	11,227	$	2,382	$	11,359	$	24,968	$	407,320	$	432,288
Full documentation amortizing	43,730		10,949		32,867		87,546		4,610,420		4,697,966
Reduced documentation interest-only	7,511		2,900		15,285		25,696		277,535		303,231
Reduced documentation amortizing	22,373		4,734		14,322		41,429		540,501		581,930
Total residential	84,841		20,965		73,833		179,639		5,835,776		6,015,415
Multi-family	2,387		2,692		2,441		7,520		4,016,585		4,024,105
Commercial real estate	487		1,689		572		2,748		816,766		819,514
Total mortgage loans	87,715		25,346		76,846		189,907		10,669,127		10,859,034
Consumer and other loans (gross):
Home equity and other consumer	2,358		502		6,405		9,265		151,554		160,819
Commercial and industrial	—		—		703		703		91,171		91,874
Total consumer and other loans	2,358		502		7,108		9,968		242,725		252,693
Total loans	$	90,073	$	25,848	$	83,954	$	199,875	$	10,911,852	$	11,111,727
Net unamortized premiums and
deferred loan origination costs											41,354
Loans receivable											11,153,081
Allowance for loan losses											(98,000		)
Loans receivable, net											$	11,055,081



	At December 31, 2014
	Past Due
	30-59		60-89		90 Days		Total
(In Thousands)	Days		Days		or More		Past Due		Current		Total
Accruing loans:
Mortgage loans (gross):
Residential:
Full documentation interest-only	$	13,943	$	7,332	$	—	$	21,275	$	804,880	$	826,155
Full documentation amortizing	25,878		7,611		144		33,633		4,948,391		4,982,024
Reduced documentation interest-only	18,490		2,584		—		21,074		547,350		568,424
Reduced documentation amortizing	11,024		1,648		—		12,672		384,250		396,922
Total residential	69,335		19,175		144		88,654		6,684,871		6,773,525
Multi-family	3,646		2,222		1,790		7,658		3,893,539		3,901,197
Commercial real estate	1,686		493		2,159		4,338		863,615		867,953
Total mortgage loans	74,667		21,890		4,093		100,650		11,442,025		11,542,675
Consumer and other loans (gross):
Home equity and other consumer	2,430		962		—		3,392		175,121		178,513
Commercial and industrial	—		—		—		—		64,815		64,815
Total consumer and other loans	2,430		962		—		3,392		239,936		243,328
Total accruing loans	$	77,097	$	22,852	$	4,093	$	104,042	$	11,681,961	$	11,786,003
Non-accrual loans:
Mortgage loans (gross):
Residential:
Full documentation interest-only	$	2,371	$	358	$	11,502	$	14,231	$	13,796	$	28,027
Full documentation amortizing	204		238		14,211		14,653		7,016		21,669
Reduced documentation interest-only	820		453		16,289		17,562		25,022		42,584
Reduced documentation amortizing	596		1,066		2,843		4,505		3,226		7,731
Total residential	3,991		2,115		44,845		50,951		49,060		100,011
Multi-family	648		346		7,127		8,121		3,735		11,856
Commercial real estate	790		—		729		1,519		4,293		5,812
Total mortgage loans	5,429		2,461		52,701		60,591		57,088		117,679
Consumer and other loans (gross):
Home equity and other consumer	—		—		6,040		6,040		—		6,040
Commercial and industrial	—		—		—		—		—		—
Total consumer and other loans	—		—		6,040		6,040		—		6,040
Total non-accrual loans	$	5,429	$	2,461	$	58,741	$	66,631	$	57,088	$	123,719
Total loans:
Mortgage loans (gross):
Residential:
Full documentation interest-only	$	16,314	$	7,690	$	11,502	$	35,506	$	818,676	$	854,182
Full documentation amortizing	26,082		7,849		14,355		48,286		4,955,407		5,003,693
Reduced documentation interest-only	19,310		3,037		16,289		38,636		572,372		611,008
Reduced documentation amortizing	11,620		2,714		2,843		17,177		387,476		404,653
Total residential	73,326		21,290		44,989		139,605		6,733,931		6,873,536
Multi-family	4,294		2,568		8,917		15,779		3,897,274		3,913,053
Commercial real estate	2,476		493		2,888		5,857		867,908		873,765
Total mortgage loans	80,096		24,351		56,794		161,241		11,499,113		11,660,354
Consumer and other loans (gross):
Home equity and other consumer	2,430		962		6,040		9,432		175,121		184,553
Commercial and industrial	—		—		—		—		64,815		64,815
Total consumer and other loans	2,430		962		6,040		9,432		239,936		249,368
Total loans	$	82,526	$	25,313	$	62,834	$	170,673	$	11,739,049	$	11,909,722
Net unamortized premiums and
deferred loan origination costs											47,726
Loans receivable											11,957,448
Allowance for loan losses											(111,600		)
Loans receivable, net											$	11,845,848

Our residential mortgage loans consist primarily of interest-only and amortizing hybrid ARM loans. We offer amortizing hybrid ARM loans which initially have a fixed rate for five, seven or ten years and convert into one year ARM loans at the end of the initial fixed rate period and require the borrower to make principal and interest payments during the entire loan term. Prior to 2014, we also offered amortizing hybrid ARM loans with an initial fixed rate period of three years. Prior to the 2010 fourth quarter, we offered interest-only hybrid ARM loans, which have an initial fixed rate for five or seven years and convert into one year interest-only ARM loans at the end of the initial fixed rate period. Our interest-only hybrid ARM loans require the borrower to pay interest only during the first ten years of the loan term. After the tenth anniversary of the loan, principal and interest payments are required to amortize the loan over the remaining loan term. We do not originate one year ARM loans. The ARM loans in our portfolio which currently reprice annually represent hybrid ARM loans (interest-only and amortizing) which have passed their initial fixed rate period. Our hybrid ARM loans may be offered with an initial interest rate which is less than the fully indexed rate for the loan at the time of origination, referred to as a discounted rate. We determine the initial interest rate in accordance with market and competitive factors giving consideration to the spread over our funding sources in conjunction with our overall interest rate risk management strategies. Residential interest-only hybrid ARM loans originated prior to 2007 were underwritten at the initial note rate which may have been a discounted rate. Such loans totaled $388.0 million at December 31, 2015 and $1.06 billion at December 31, 2014. We do not originate negative amortization loans, payment option loans or other loans with short-term interest-only periods.

Within our residential mortgage loan portfolio we have reduced documentation loan products, which totaled $885.2 million at December 31, 2015 and $1.02 billion at December 31, 2014. Reduced documentation loans are comprised primarily of SIFA (stated income, full asset) loans. To a lesser extent, reduced documentation loans in our portfolio also include SISA (stated income, stated asset) loans, which totaled $135.7 million at December 31, 2015 and $148.9 million at December 31, 2014. SIFA and SISA loans require a prospective borrower to complete a standard mortgage loan application. Reduced documentation loans require the receipt of an appraisal of the real estate used as collateral for the mortgage loan and a credit report on the prospective borrower. In addition, SIFA loans require the verification of a potential borrower’s asset information on the loan application, but not the income information provided. During the 2007 fourth quarter, we stopped offering reduced documentation loans.

Included in loans receivable are loans in the process of foreclosure collateralized by residential real estate property with a recorded investment of $51.0 million at December 31, 2015 and $24.7 million at December 31, 2014. At June 30, 2014, we designated a pool of non-performing residential mortgage loans, substantially all of which were 90 days or more past due, as held-for-sale. In connection with the designation of the pool of loans as held-for-sale, we recorded a loan charge-off of $8.7 million against the allowance for loan losses during the 2014 second quarter to write down the pool of loans from its immediately previous aggregate recorded investment of $195.0 million to its estimated fair value at the time of $186.3 million. As a result of our quarterly review of the adequacy of the allowance for loan losses as of June 30, 2014, $5.7 million of reserves previously attributable to this pool of loans was deemed no longer required and was credited to the provision for loan losses as a reserve release in the 2014 second quarter. On July 31, 2014, we completed a bulk sale transaction of substantially all of the non-performing residential mortgage loans held-for-sale at terms approximating their carrying value at June 30, 2014. Total loans sold in that transaction had a carrying value of $173.7 million, reflecting the previous write down to the estimated fair value through June 30, 2014. The majority of the remaining loans from the pool designated as held-for-sale as of June 30, 2014 were either foreclosed upon and transferred to REO or were satisfied via short sales or payoffs during the 2014 third quarter with no material impact on our financial condition or results of operations. On September 12, 2014, we completed a second sale transaction, with the same counterparty as the bulk sale transaction, in which we sold all of the remaining non-performing residential mortgage loans held-for-sale with a carrying value of $4.0 million, reflecting the previous write down to the estimated fair value through June 30, 2014, and recorded a loss on the sale of such loans in the 2014 third quarter of $920,000. In 2015, no loans were sold in a bulk sale transaction.

Accrued interest receivable on all loans totaled $27.6 million at December 31, 2015 and $29.9 million at December 31, 2014. If all non-accrual loans at December 31, 2015, 2014 and 2013 had been performing in accordance with their original terms, we would have recorded interest income, with respect to such loans, of $5.4 million for the year ended December 31, 2015, $5.6 million for the year ended December 31, 2014 and $15.6 million for the year ended December 31, 2013. This compares to actual payments recorded as interest income, with respect to such loans, of $3.4 million for the year ended December 31, 2015, $3.6 million for the year ended December 31, 2014 and $6.2 million for the year ended December 31, 2013.

The following table sets forth the changes in our allowance for loan losses by loan receivable segment for the years indicated.



		Mortgage Loans										Consumer and Other Loans
(In Thousands)	Residential				Multi- Family			Commercial Real Estate				Consumer and Other Loans				Total
Balance at December 31, 2012		$	89,267		$	35,514			$	14,404			$	6,316		$	145,501
Provision charged to operations		9,368			4,684				1,945				3,604			19,601
Charge-offs		(26,644		)	(4,732		)		(3,748		)		(1,916		)	(37,040		)
Recoveries		8,346			1,237				535				820			10,938
Balance at December 31, 2013		80,337			36,703				13,136				8,824			139,000
Provision (credited) charged to operations		(23,464		)	5,337				6,949				1,709			(9,469		)
Charge-offs		(19,868		)	(4,365		)		(3,283		)		(2,073		)	(29,589		)
Recoveries		9,278			1,575				440				365			11,658
Balance at December 31, 2014		46,283			39,250				17,242				8,825			111,600
Provision charged (credited) to operations		1,520			(4,780		)		(6,810		)		(2,002		)	(12,072		)
Charge-offs		(6,149		)	(907		)		(302		)		(912		)	(8,270		)
Recoveries		3,297			1,981				1,087				377			6,742
Balance at December 31, 2015		$	44,951		$	35,544			$	11,217			$	6,288		$	98,000

The following table sets forth the balances of our residential interest-only mortgage loans at December 31, 2015 by the year in which such loans are scheduled to enter their amortization period.



(In Thousands)	Recorded Investment
Amortization scheduled to begin in:
2016	$	324,772
2017	344,356
2018	42,549
2019 and thereafter	23,842
Total	$	735,519

The following tables set forth the balances of our residential mortgage and consumer and other loan receivable segments by class and credit quality indicator at the dates indicated.



		At December 31, 2015
		Residential Mortgage Loans										Consumer and Other Loans
		Full Documentation					Reduced Documentation					Home Equity and Other Consumer			Commercial and Industrial
(In Thousands)	Interest-only			Amortizing		Interest-only			Amortizing			Home Equity and Other Consumer			Commercial and Industrial
Performing		$	413,913	$	4,653,437		$	275,659		$	552,070		$	154,414		$	91,171
Non-performing:
Current or past due less than 90 days		7,016		11,662			12,287			15,538			—			—
Past due 90 days or more		11,359		32,867			15,285			14,322			6,405			703
Total		$	432,288	$	4,697,966		$	303,231		$	581,930		$	160,819		$	91,874



		At December 31, 2014
		Residential Mortgage Loans										Consumer and Other Loans
		Full Documentation					Reduced Documentation					Home Equity and Other Consumer			Commercial and Industrial
(In Thousands)	Interest-only			Amortizing		Interest-only			Amortizing			Home Equity and Other Consumer			Commercial and Industrial
Performing		$	826,155	$	4,981,880		$	568,424		$	396,922		$	178,513		$	64,815
Non-performing:
Current or past due less than 90 days		16,525		7,458			26,295			4,888			—			—
Past due 90 days or more		11,502		14,355			16,289			2,843			6,040			—
Total		$	854,182	$	5,003,693		$	611,008		$	404,653		$	184,553		$	64,815

The following table sets forth the balances of our multi-family and commercial real estate mortgage loan receivable segments by credit quality indicator at the dates indicated.



		At December 31,
		2015						2014
(In Thousands)	Multi-Family			Commercial Real Estate			Multi-Family			Commercial Real Estate
Not criticized		$	3,981,050		$	769,029		$	3,850,068		$	817,404
Criticized:
Special mention		14,931			20,441			30,975			22,584
Substandard		28,124			30,044			31,264			32,664
Doubtful		—			—			746			1,113
Total		$	4,024,105		$	819,514		$	3,913,053		$	873,765

The following tables set forth the balances of our loans receivable and the related allowance for loan loss allocation by segment and by the impairment methodology followed in determining the allowance for loan losses at the dates indicated.



	At December 31, 2015
	Mortgage Loans								Consumer and Other Loans
(In Thousands)	Residential		Multi-Family			Commercial Real Estate			Consumer and Other Loans			Total
Loans:
Individually evaluated for impairment	$	192,914		$	24,643		$	14,993		$	4,968	$	237,518
Collectively evaluated for impairment	5,822,501			3,999,462			804,521			247,725		10,874,209
Total loans	$	6,015,415		$	4,024,105		$	819,514		$	252,693	$	11,111,727
Allowance for loan losses:
Individually evaluated for impairment	$	13,148		$	456		$	788		$	421	$	14,813
Collectively evaluated for impairment	31,803			35,088			10,429			5,867		83,187
Total allowance for loan losses	$	44,951		$	35,544		$	11,217		$	6,288	$	98,000



	At December 31, 2014
	Mortgage Loans								Consumer and Other Loans
(In Thousands)	Residential		Multi-Family			Commercial Real Estate			Consumer and Other Loans			Total
Loans:
Individually evaluated for impairment	$	181,402		$	42,611		$	19,270		$	5,153	$	248,436
Collectively evaluated for impairment	6,692,134			3,870,442			854,495			244,215		11,661,286
Total loans	$	6,873,536		$	3,913,053		$	873,765		$	249,368	$	11,909,722
Allowance for loan losses:
Individually evaluated for impairment	$	10,304		$	3,172		$	2,446		$	3,810	$	19,732
Collectively evaluated for impairment	35,979			36,078			14,796			5,015		91,868
Total allowance for loan losses	$	46,283		$	39,250		$	17,242		$	8,825	$	111,600

The following table summarizes information related to our impaired loans by segment and class at the dates indicated.



	At December 31,
	2015											2014
(In Thousands)	Unpaid Principal Balance		Recorded Investment			Related Allowance			Net Investment			Unpaid Principal Balance		Recorded Investment			Related Allowance			Net Investment
With an allowance recorded:
Mortgage loans:
Residential:
Full documentation interest-only	$	37,454		$	30,631	$	(4,051	)		$	26,580	$	55,352		$	46,331	$	(3,391	)		$	42,940
Full documentation amortizing	69,242			63,223		(2,534		)		60,689		43,044			39,994		(1,425		)		38,569
Reduced documentation interest-only	55,939			46,540		(4,253		)		42,287		90,171			76,960		(4,661		)		72,299
Reduced documentation amortizing	57,955			52,520		(2,310		)		50,210		19,463			18,117		(827		)		17,290
Multi-family	8,029			7,950		(456		)		7,494		34,972			28,109		(3,172		)		24,937
Commercial real estate	6,651			6,723		(788		)		5,935		24,991			19,270		(2,446		)		16,824
Consumer and other loans:
Home equity lines of credit	5,295			4,968		(421		)		4,547		5,436			5,153		(3,810		)		1,343
Without an allowance recorded:
Mortgage loans:
Multi-family	19,523			16,693		—				16,693		16,308			14,502		—				14,502
Commercial real estate	11,104			8,270		—				8,270		—			—		—				—
Total impaired loans	$	271,192		$	237,518	$	(14,813	)		$	222,705	$	289,737		$	248,436	$	(19,732	)		$	228,704

The following table sets forth the average recorded investment, interest income recognized and cash basis interest income related to our impaired loans by segment and class for the years indicated.



		For the Year Ended December 31,
		2015									2014									2013
(In Thousands)	Average Recorded Investment			Interest Income Recognized			Cash Basis Interest Income			Average Recorded Investment			Interest Income Recognized			Cash Basis Interest Income			Average Recorded Investment			Interest Income Recognized			Cash Basis Interest Income
With an allowance recorded:
Mortgage loans:
Residential:
Full documentation interest-only		$	39,506		$	860		$	877		$	84,264		$	1,860		$	1,920		$	106,720		$	2,938		$	3,068
Full documentation amortizing		52,426			1,893			1,920			38,340			1,491			1,498			30,790			948			974
Reduced documentation interest-only		66,321			1,910			1,923			112,172			3,646			3,671			145,490			4,179			4,371
Reduced documentation amortizing		30,310			1,927			1,936			22,137			655			653			25,460			696			729
Multi-family		14,390			415			417			30,291			1,320			1,339			19,130			737			789
Commercial real estate		11,875			333			348			17,341			1,065			1,154			8,112			367			377
Consumer and other loans:
Home equity lines of credit		5,585			48			54			5,202			45			54			—			—			—
Without an allowance recorded:
Mortgage loans:
Residential:
Full documentation interest-only		—			—			—			—			—			—			11,547			—			—
Full documentation amortizing		—			—			—			365			—			—			3,517			—			—
Reduced documentation interest-only		—			—			—			—			—			—			1,669			—			—
Multi-family		16,935			857			862			17,225			632			633			33,193			1,606			1,671
Commercial real estate		5,632			522			528			2,853			—			—			10,947			745			698
Total impaired loans		$	242,980		$	8,765		$	8,865		$	330,190		$	10,714		$	10,922		$	396,575		$	12,216		$	12,677

The following table sets forth information about our mortgage loans receivable by segment and class at December 31, 2015, 2014 and 2013 which were modified in a TDR during the years indicated.



		Modifications During the Year Ended December 31,
		2015								2014								2013
(Dollars In Thousands)	Number of Loans		Pre- Modification Recorded Investment			Recorded Investment at December 31, 2015			Number of Loans		Pre- Modification Recorded Investment			Recorded Investment at December 31, 2014			Number of Loans		Pre- Modification Recorded Investment			Recorded Investment at December 31, 2013
Residential:
Full documentation interest-only		12		$	4,620		$	4,496		21		$	9,244		$	8,726		26		$	6,760		$	6,730
Full documentation amortizing		19		5,063			4,894			4		889			812			11		3,753			3,734
Reduced documentation interest-only		10		3,431			3,429			19		6,819			6,774			37		12,199			12,227
Reduced documentation amortizing		7		2,911			2,902			5		809			745			11		3,404			3,325
Multi-family		—		—			—			4		2,501			1,981			8		6,751			5,888
Commercial real estate		2		2,902			2,835			3		2,482			2,433			7		10,232			9,104
Total		50		$	18,927		$	18,556		56		$	22,744		$	21,471		100		$	43,099		$	41,008

The following table sets forth information about our mortgage loans receivable by segment and class at December 31, 2015, 2014 and 2013 which were modified in a TDR during the years ended December 31, 2015, 2014 and 2013 and had a payment default subsequent to the modification during the years indicated.



		During the Year Ended December 31,
		2015					2014					2013
(Dollars In Thousands)	Number of Loans		Recorded Investment at December 31, 2015			Number of Loans		Recorded Investment at December 31, 2014			Number of Loans		Recorded Investment at December 31, 2013
Residential:
Full documentation interest-only		6		$	2,240		1		$	621		11		$	2,191
Full documentation amortizing		6		1,749			2		319			4		1,334
Reduced documentation interest-only		2		380			3		1,123			17		4,190
Reduced documentation amortizing		2		606			—		—			3		788
Multi-family		—		—			3		1,400			2		1,018
Total		16		$	4,975		9		$	3,463		37		$	9,521

The following table details the percentage of our total residential mortgage loans at December 31, 2015 by state where we have a concentration of greater than 5% of our total residential mortgage loans or total non-performing residential mortgage loans.



State	Percent of Total Residential Loans			Percent of Total Non-Performing Residential Loans
New York		30.2	%		10.7	%
Connecticut		9.8			9.8
Massachusetts		8.4			3.9
Illinois		8.2			12.4
Virginia		7.7			10.5
New Jersey		7.1			17.1
Maryland		6.5			14.9
California		5.4			9.2

At December 31, 2015, substantially all of our multi-family and commercial real estate mortgage loans and non-performing multi-family and commercial real estate mortgage loans were secured by properties located in the New York metropolitan area, which includes New York, New Jersey and Connecticut.