Loans Receivable and Allowance for Loan Losses

6 Months Ended

Jun. 30, 2016

Receivables [Abstract]

Loans Receivable and Allowance for Loan Losses

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 June 30, 2016
	Past Due
(In Thousands)	30-59 Days		60-89 Days		90 Days or More		Total Past Due		Current		Total
Accruing loans:
Mortgage loans (gross):
Residential:
Full documentation interest-only	$	4,510	$	943	$	—	$	5,453	$	313,953	$	319,406
Full documentation amortizing	34,084		7,312		—		41,396		4,392,925		4,434,321
Reduced documentation interest-only	5,150		1,004		—		6,154		156,689		162,843
Reduced documentation amortizing	15,267		5,435		—		20,702		558,642		579,344
Total residential	59,011		14,694		—		73,705		5,422,209		5,495,914
Multi-family	4,504		136		716		5,356		4,107,115		4,112,471
Commercial real estate	181		1,654		1,702		3,537		784,840		788,377
Total mortgage loans	63,696		16,484		2,418		82,598		10,314,164		10,396,762
Consumer and other loans (gross):
Home equity and other consumer	2,668		541		—		3,209		140,616		143,825
Commercial and industrial	—		—		—		—		107,558		107,558
Total consumer and other loans	2,668		541		—		3,209		248,174		251,383
Total accruing loans	$	66,364	$	17,025	$	2,418	$	85,807	$	10,562,338	$	10,648,145
Non-accrual loans:
Mortgage loans (gross):
Residential:
Full documentation interest-only	$	—	$	—	$	12,952	$	12,952	$	4,812	$	17,764
Full documentation amortizing	1,494		886		41,035		43,415		10,637		54,052
Reduced documentation interest-only	579		365		12,980		13,924		5,497		19,421
Reduced documentation amortizing	512		1,447		29,132		31,091		15,179		46,270
Total residential	2,585		2,698		96,099		101,382		36,125		137,507
Multi-family	493		1,451		2,437		4,381		3,192		7,573
Commercial real estate	230		166		—		396		1,251		1,647
Total mortgage loans	3,308		4,315		98,536		106,159		40,568		146,727
Consumer and other loans (gross):
Home equity and other consumer	—		—		5,284		5,284		271		5,555
Commercial and industrial	—		—		491		491		—		491
Total consumer and other loans	—		—		5,775		5,775		271		6,046
Total non-accrual loans	$	3,308	$	4,315	$	104,311	$	111,934	$	40,839	$	152,773
Total loans:
Mortgage loans (gross):
Residential:
Full documentation interest-only	$	4,510	$	943	$	12,952	$	18,405	$	318,765	$	337,170
Full documentation amortizing	35,578		8,198		41,035		84,811		4,403,562		4,488,373
Reduced documentation interest-only	5,729		1,369		12,980		20,078		162,186		182,264
Reduced documentation amortizing	15,779		6,882		29,132		51,793		573,821		625,614
Total residential	61,596		17,392		96,099		175,087		5,458,334		5,633,421
Multi-family	4,997		1,587		3,153		9,737		4,110,307		4,120,044
Commercial real estate	411		1,820		1,702		3,933		786,091		790,024
Total mortgage loans	67,004		20,799		100,954		188,757		10,354,732		10,543,489
Consumer and other loans (gross):
Home equity and other consumer	2,668		541		5,284		8,493		140,887		149,380
Commercial and industrial	—		—		491		491		107,558		108,049
Total consumer and other loans	2,668		541		5,775		8,984		248,445		257,429
Total loans	$	69,672	$	21,340	$	106,729	$	197,741	$	10,603,177	$	10,800,918
Net unamortized premiums and deferred loan origination costs											38,411
Loans receivable											10,839,329
Allowance for loan losses											(90,000		)
Loans receivable, net											$	10,749,329

	At December 31, 2015
	Past Due
(In Thousands)	30-59 Days		60-89 Days		90 Days or More		Total 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

We segment our one-to-four family, or residential, mortgage loan portfolio by interest-only and amortizing loans, full documentation and reduced documentation loans, and origination time periods, and analyze our historical loss experience and delinquency levels and trends of these segments.  We analyze multi-family and commercial real estate mortgage loans by portfolio using predictive modeling techniques for loans originated after 2010 and by geographic location for loans originated prior to 2011. We analyze our consumer and other loan portfolio by home equity lines of credit, commercial and industrial loans and other consumer loans and perform similar historical loss analyses.

We analyze our historical loss experience over 12, 15, 18 and 24 month periods.  The loss history used in calculating our quantitative allowance coverage percentages varies based on loan type. Also, for a particular loan type, we may not have sufficient loss history to develop a reasonable estimate of loss and in these instances we may consider our loss experience for other, similar loan types and may evaluate those losses over a longer period than two years.  Additionally, multi-family and commercial real estate loss experience may be adjusted based on the composition of the losses (loan sales, short sales and partial charge-offs). Our evaluation of loss experience factors considers trends in such factors over the prior three years, as well as an estimate of the average amount of time from an event signaling the potential inability of a borrower to continue to pay as agreed to the point at which a loss is confirmed, for substantially all of the loan portfolio, with the exception of multi-family and commercial real estate mortgage loans originated after 2010, for which our evaluation includes detailed modeling techniques. These modeling techniques utilize data inputs for each loan in the portfolio, including credit facility terms and performance to date, property details and borrower financial performance data. The model also incorporates real estate market data from an established real estate market database company to forecast future performance of the properties, and includes a loan loss predictive model based on studies of defaulted commercial real estate loans. The model then generates a probability of default, loss given default and ultimately an estimated loss for each loan quarterly over the remaining life of the loan. The appropriate timeframe from which to assign an estimated loss percentage to the pool of loans is assessed by management. We update our historical loss analyses, as well as our predictive model, quarterly and evaluate the need to modify our quantitative allowances as a result of our updated charge-off and loss analyses. We also consider qualitative factors with the purpose of assessing the adequacy of the overall allowance for loan losses as well as the allocation of the allowance for loan losses by loan category.

Allowance adequacy calculations are adjusted quarterly, based on the results of our quantitative and qualitative analyses, to reflect our current estimates of the amount of probable losses inherent in our loan portfolio. The portion of the allowance allocated to each loan category does not represent the total available to absorb losses which may occur within the loan category, since the total allowance for loan losses is available for losses applicable to the entire loan portfolio.

The following tables set forth the changes in our allowance for loan losses by loan receivable segment for the periods indicated.

		For the Three Months Ended June 30, 2016
		Mortgage Loans										Consumer and Other Loans
					Multi-Family			Commercial Real Estate
(In Thousands)	Residential															Total
Balance at April 1, 2016		$	44,378		$	33,020			$	10,368			$	6,434		$	94,200
Provision (credited) charged to operations		(1,658		)	(1,270		)		(596		)		518			(3,006		)
Charge-offs		(1,826		)	(99		)		(63		)		(95		)	(2,083		)
Recoveries		326			480				—				83			889
Balance at June 30, 2016		$	41,220		$	32,131			$	9,709			$	6,940		$	90,000
		For the Six Months Ended June 30, 2016
		Mortgage Loans										Consumer and Other Loans
					Multi-Family			Commercial Real Estate
(In Thousands)	Residential															Total
Balance at January 1, 2016		$	44,951		$	35,544			$	11,217			$	6,288		$	98,000
Provision (credited) charged to operations		(1,520		)	(4,527		)		(1,445		)		1,359			(6,133		)
Charge-offs		(3,491		)	(409		)		(63		)		(860		)	(4,823		)
Recoveries		1,280			1,523				—				153			2,956
Balance at June 30, 2016		$	41,220		$	32,131			$	9,709			$	6,940		$	90,000

		For the Three Months Ended June 30, 2015
		Mortgage Loans										Consumer and Other Loans
					Multi-Family			Commercial Real Estate
(In Thousands)	Residential															Total
Balance at April 1, 2015		$	43,481		$	40,082			$	17,118			$	9,819		$	110,500
Provision charged (credited) to operations		1,497			(1,663		)		(1,728		)		(1,073		)	(2,967		)
Charge-offs		(1,602		)	(103		)		—				(86		)	(1,791		)
Recoveries		1,170			478				—				110			1,758
Balance at June 30, 2015		$	44,546		$	38,794			$	15,390			$	8,770		$	107,500
		For the Six Months Ended June 30, 2015
		Mortgage Loans										Consumer and Other Loans
					Multi-Family			Commercial Real Estate
(In Thousands)	Residential															Total
Balance at January 1, 2015		$	46,283		$	39,250			$	17,242			$	8,825		$	111,600
Provision (credited) charged to operations		(354		)	(1,407		)		(1,710		)		161			(3,310		)
Charge-offs		(3,359		)	(345		)		(142		)		(435		)	(4,281		)
Recoveries		1,976			1,296				—				219			3,491
Balance at June 30, 2015		$	44,546		$	38,794			$	15,390			$	8,770		$	107,500

The following table sets forth the balances of our residential interest-only mortgage loans at June 30, 2016 by the period in which such loans are scheduled to enter their amortization period.

(In Thousands)	Recorded Investment
Amortization scheduled to begin in:
12 months or less	$	322,891
13 to 24 months	162,300
25 to 36 months	16,391
Over 36 months	17,852
Total	$	519,434

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 June 30, 2016
		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
Performing		$	319,406	$	4,434,321		$	162,843	$	579,344		$	143,825	$	107,558
Non-performing:
Current or past due less than 90 days		4,812		13,017			6,441		17,138			271		—
Past due 90 days or more		12,952		41,035			12,980		29,132			5,284		491
Total		$	337,170	$	4,488,373		$	182,264	$	625,614		$	149,380	$	108,049
		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
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

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 June 30, 2016						At December 31, 2015
				Commercial Real Estate						Commercial Real Estate
(In Thousands)	Multi-Family						Multi-Family
Not criticized		$	4,074,281		$	748,936		$	3,981,050		$	769,029
Criticized:
Special mention		21,342			14,255			14,931			20,441
Substandard		24,421			26,833			28,124			30,044
Doubtful		—			—			—			—
Total		$	4,120,044		$	790,024		$	4,024,105		$	819,514

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 June 30, 2016
	Mortgage Loans							Consumer and Other Loans
			Multi-Family		Commercial Real Estate
(In Thousands)	Residential									Total
Loans:
Individually evaluated for impairment	$	199,584	$	13,500		$	11,937	$	4,438	$	229,459
Collectively evaluated for impairment	5,433,837		4,106,544			778,087		252,991		10,571,459
Total loans	$	5,633,421	$	4,120,044		$	790,024	$	257,429	$	10,800,918
Allowance for loan losses:
Individually evaluated for impairment	$	12,066	$	147		$	21	$	370	$	12,604
Collectively evaluated for impairment	29,154		31,984			9,688		6,570		77,396
Total allowance for loan losses	$	41,220	$	32,131		$	9,709	$	6,940	$	90,000

	At December 31, 2015
	Mortgage Loans							Consumer and Other Loans
			Multi-Family		Commercial Real Estate
(In Thousands)	Residential									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

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

	At June 30, 2016									At December 31, 2015
(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	$	31,384	$	25,196	$	(3,127	)	$	22,069	$	37,454	$	30,631	$	(4,051	)	$	26,580
Full documentation amortizing	82,711		75,484		(3,601		)	71,883		69,242		63,223		(2,534		)	60,689
Reduced documentation interest-only	39,060		31,990		(2,459		)	29,531		55,939		46,540		(4,253		)	42,287
Reduced documentation amortizing	74,827		66,914		(2,879		)	64,035		57,955		52,520		(2,310		)	50,210
Multi-family	4,724		4,788		(147		)	4,641		8,029		7,950		(456		)	7,494
Commercial real estate	323		344		(21		)	323		6,651		6,723		(788		)	5,935
Consumer and other loans:
Home equity lines of credit	4,796		4,438		(370		)	4,068		5,295		4,968		(421		)	4,547
Without an allowance recorded:
Mortgage loans:
Multi-family	9,935		8,712		—			8,712		19,523		16,693		—			16,693
Commercial real estate	14,427		11,593		—			11,593		11,104		8,270		—			8,270
Total impaired loans	$	262,187	$	229,459	$	(12,604	)	$	216,855	$	271,192	$	237,518	$	(14,813	)	$	222,705

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

	For the Three Months Ended June 30,
	2016						2015
(In Thousands)	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	$	26,744	$	154	$	154	$	42,150	$	295	$	291
Full documentation amortizing	70,988		524		534		50,619		380		391
Reduced documentation interest-only	35,843		300		300		74,210		840		821
Reduced documentation amortizing	64,400		594		597		21,888		203		207
Multi-family	5,232		56		68		14,731		75		81
Commercial real estate	686		5		5		13,751		100		101
Consumer and other loans:
Home equity lines of credit	4,488		11		9		6,179		20		22
Without an allowance recorded:
Mortgage loans:
Multi-family	9,385		113		121		17,014		138		138
Commercial real estate	11,867		164		167		4,505		266		266
Total impaired loans	$	229,633	$	1,921	$	1,955	$	245,047	$	2,317	$	2,318
	For the Six Months Ended June 30,
	2016						2015
(In Thousands)	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	$	28,040	$	290	$	302	$	43,544	$	608	$	614
Full documentation amortizing	68,400		1,070		1,077		47,077		798		816
Reduced documentation interest-only	39,409		622		615		75,126		1,528		1,527
Reduced documentation amortizing	60,440		1,156		1,178		20,631		392		401
Multi-family	6,138		120		138		19,190		159		183
Commercial real estate	2,698		11		12		15,591		197		209
Consumer and other loans:
Home equity lines of credit	4,648		21		20		5,837		32		39
Without an allowance recorded:
Mortgage loans:
Multi-family	11,821		243		254		16,177		534		534
Commercial real estate	10,668		334		337		3,003		277		275
Total impaired loans	$	232,262	$	3,867	$	3,933	$	246,176	$	4,525	$	4,598

The following tables set forth information about our mortgage loans receivable by segment and class at June 30, 2016 and 2015 which were modified in a troubled debt restructuring, or TDR, during the periods indicated.

	Modifications During the Three Months Ended June 30,
	2016								2015
(Dollars In Thousands)	Number of Loans		Pre- Modification Recorded Investment			Recorded Investment at June 30, 2016			Number of Loans		Pre- Modification Recorded Investment			Recorded Investment at June 30, 2015
Residential:
Full documentation interest-only		3		$	1,947		$	1,943		4		$	1,315		$	1,309
Full documentation amortizing		11		4,274			4,264			5		1,142			1,136
Reduced documentation interest-only		1		498			489			1		209			209
Reduced documentation amortizing		2		529			526			2		339			339
Multi-family		1		338			332			—		—			—
Commercial real estate		1		515			487			—		—			—
Total		19		$	8,101		$	8,041		12		$	3,005		$	2,993
	Modifications During the Six Months Ended June 30,
	2016								2015
(Dollars In Thousands)	Number of Loans		Pre- Modification Recorded Investment			Recorded Investment at June 30, 2016			Number of Loans		Pre- Modification Recorded Investment			Recorded Investment at June 30, 2015
Residential:
Full documentation interest-only		7		$	2,836		$	2,829		8		$	3,350		$	3,340
Full documentation amortizing		13		4,865			4,852			11		3,201			3,126
Reduced documentation interest-only		3		1,212			1,196			5		1,896			1,903
Reduced documentation amortizing		5		1,524			1,506			2		339			339
Multi-family		1		338			332			—		—			—
Commercial real estate		1		515			487			2		2,902			2,864
Total		30		$	11,290		$	11,202		28		$	11,688		$	11,572

The following tables set forth information about our mortgage loans receivable by segment and class at June 30, 2016 and 2015 which were modified in a TDR during the twelve month periods ended June 30, 2016 and 2015 and had a payment default subsequent to the modification during the periods indicated.

	For the Three Months Ended June 30,
	2016					2015
(Dollars In Thousands)	Number of Loans		Recorded Investment at June 30, 2016			Number of Loans		Recorded Investment at June 30, 2015
Residential:
Full documentation interest-only		3		$	1,084		4		$	1,957
Full documentation amortizing		9		2,345			1		387
Reduced documentation interest-only		2		395			4		1,967
Multi-family		—		—			2		1,036
Total		14		$	3,824		11		$	5,347
	For the Six Months Ended June 30,
	2016					2015
(Dollars In Thousands)	Number of Loans		Recorded Investment at June 30, 2016			Number of Loans		Recorded Investment at June 30, 2015
Residential:
Full documentation interest-only		3		$	1,084		4		$	1,957
Full documentation amortizing		9		2,345			2		845
Reduced documentation interest-only		3		970			4		1,967
Multi-family		—		—			2		1,036
Total		15		$	4,399		12		$	5,805

Included in loans receivable at June 30, 2016 are loans in the process of foreclosure collateralized by residential real estate property with a recorded investment of $67.1 million.

For additional information regarding our loans receivable and allowance for loan losses, see “Asset Quality” and “Critical Accounting Policies” in Part I, Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” or “MD&A.”