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 March 31, 2017
	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	$	1,120	$	—	$	—	$	1,120	$	166,790	$	167,910
Full documentation amortizing	32,903		5,047		—		37,950		4,240,703		4,278,653
Reduced documentation interest-only	2,186		302		—		2,488		54,181		56,669
Reduced documentation amortizing	22,149		9,375		—		31,524		554,455		585,979
Total residential	58,358		14,724		—		73,082		5,016,129		5,089,211
Multi-family	5,162		151		—		5,313		4,014,746		4,020,059
Commercial real estate	1,695		521		1,639		3,855		692,064		695,919
Total mortgage loans	65,215		15,396		1,639		82,250		9,722,939		9,805,189
Consumer and other loans (gross):
Home equity and other consumer	1,609		495		—		2,104		128,610		130,714
Commercial and industrial	375		—		—		375		90,567		90,942
Total consumer and other loans	1,984		495		—		2,479		219,177		221,656
Total accruing loans	$	67,199	$	15,891	$	1,639	$	84,729	$	9,942,116	$	10,026,845
Non-accrual loans:
Mortgage loans (gross):
Residential:
Full documentation interest-only	$	—	$	—	$	9,073	$	9,073	$	877	$	9,950
Full documentation amortizing	2,353		498		45,117		47,968		9,273		57,241
Reduced documentation interest-only	—		—		9,503		9,503		1,919		11,422
Reduced documentation amortizing	929		884		35,286		37,099		9,847		46,946
Total residential	3,282		1,382		98,979		103,643		21,916		125,559
Multi-family	437		396		558		1,391		2,314		3,705
Commercial real estate	680		—		627		1,307		3,649		4,956
Total mortgage loans	4,399		1,778		100,164		106,341		27,879		134,220
Consumer and other loans (gross):
Home equity and other consumer	—		—		4,139		4,139		—		4,139
Commercial and industrial	—		—		32		32		—		32
Total consumer and other loans	—		—		4,171		4,171		—		4,171
Total non-accrual loans	$	4,399	$	1,778	$	104,335	$	110,512	$	27,879	$	138,391
Total loans:
Mortgage loans (gross):
Residential:
Full documentation interest-only	$	1,120	$	—	$	9,073	$	10,193	$	167,667	$	177,860
Full documentation amortizing	35,256		5,545		45,117		85,918		4,249,976		4,335,894
Reduced documentation interest-only	2,186		302		9,503		11,991		56,100		68,091
Reduced documentation amortizing	23,078		10,259		35,286		68,623		564,302		632,925
Total residential	61,640		16,106		98,979		176,725		5,038,045		5,214,770
Multi-family	5,599		547		558		6,704		4,017,060		4,023,764
Commercial real estate	2,375		521		2,266		5,162		695,713		700,875
Total mortgage loans	69,614		17,174		101,803		188,591		9,750,818		9,939,409
Consumer and other loans (gross):
Home equity and other consumer	1,609		495		4,139		6,243		128,610		134,853
Commercial and industrial	375		—		32		407		90,567		90,974
Total consumer and other loans	1,984		495		4,171		6,650		219,177		225,827
Total loans	$	71,598	$	17,669	$	105,974	$	195,241	$	9,969,995	$	10,165,236
Net unamortized premiums and deferred loan origination costs											35,730
Loans receivable											10,200,966
Allowance for loan losses											(82,500		)
Loans receivable, net											$	10,118,466



	At December 31, 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	$	1,476	$	3,104	$	—	$	4,580	$	212,316	$	216,896
Full documentation amortizing	36,563		8,217		—		44,780		4,300,620		4,345,400
Reduced documentation interest-only	2,974		779		—		3,753		80,416		84,169
Reduced documentation amortizing	27,449		5,222		—		32,671		552,233		584,904
Total residential	68,462		17,322		—		85,784		5,145,585		5,231,369
Multi-family	1,060		795		—		1,855		4,040,386		4,042,241
Commercial real estate	2,043		1,298		—		3,341		720,582		723,923
Total mortgage loans	71,565		19,415		—		90,980		9,906,553		9,997,533
Consumer and other loans (gross):
Home equity and other consumer	1,281		550		—		1,831		133,024		134,855
Commercial and industrial	—		647		—		647		99,087		99,734
Total consumer and other loans	1,281		1,197		—		2,478		232,111		234,589
Total accruing loans	$	72,846	$	20,612	$	—	$	93,458	$	10,138,664	$	10,232,122
Non-accrual loans:
Mortgage loans (gross):
Residential:
Full documentation interest-only	$	437	$	—	$	11,605	$	12,042	$	2,048	$	14,090
Full documentation amortizing	2,469		—		42,983		45,452		11,753		57,205
Reduced documentation interest-only	—		—		11,624		11,624		3,768		15,392
Reduced documentation amortizing	1,077		992		35,351		37,420		9,887		47,307
Total residential	3,983		992		101,563		106,538		27,456		133,994
Multi-family	428		611		1,244		2,283		2,098		4,381
Commercial real estate	219		—		—		219		5,117		5,336
Total mortgage loans	4,630		1,603		102,807		109,040		34,671		143,711
Consumer and other loans (gross):
Home equity and other consumer	—		—		4,483		4,483		—		4,483
Commercial and industrial	—		—		42		42		—		42
Total consumer and other loans	—		—		4,525		4,525		—		4,525
Total non-accrual loans	$	4,630	$	1,603	$	107,332	$	113,565	$	34,671	$	148,236
Total loans:
Mortgage loans (gross):
Residential:
Full documentation interest-only	$	1,913	$	3,104	$	11,605	$	16,622	$	214,364	$	230,986
Full documentation amortizing	39,032		8,217		42,983		90,232		4,312,373		4,402,605
Reduced documentation interest-only	2,974		779		11,624		15,377		84,184		99,561
Reduced documentation amortizing	28,526		6,214		35,351		70,091		562,120		632,211
Total residential	72,445		18,314		101,563		192,322		5,173,041		5,365,363
Multi-family	1,488		1,406		1,244		4,138		4,042,484		4,046,622
Commercial real estate	2,262		1,298		—		3,560		725,699		729,259
Total mortgage loans	76,195		21,018		102,807		200,020		9,941,224		10,141,244
Consumer and other loans (gross):
Home equity and other consumer	1,281		550		4,483		6,314		133,024		139,338
Commercial and industrial	—		647		42		689		99,087		99,776
Total consumer and other loans	1,281		1,197		4,525		7,003		232,111		239,114
Total loans	$	77,476	$	22,215	$	107,332	$	207,023	$	10,173,335	$	10,380,358
Net unamortized premiums and deferred loan origination costs											36,829
Loans receivable											10,417,187
Allowance for loan losses											(86,100		)
Loans receivable, net											$	10,331,087

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.

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 predictive modeling techniques. We also 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). 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 March 31, 2017
		Mortgage Loans										Consumer and Other Loans
					Multi-Family			Commercial Real Estate
(In Thousands)	Residential				Multi-Family			Commercial Real Estate								Total
Balance at January 1, 2017		$	36,439		$	34,901			$	9,299			$	5,461		$	86,100
Provision credited to operations		(901		)	(957		)		(503		)		(125		)	(2,486		)
Charge-offs		(2,235		)	(34		)		—				(112		)	(2,381		)
Recoveries		1,048			39				109				71			1,267
Balance at March 31, 2017		$	34,351		$	33,949			$	8,905			$	5,295		$	82,500



		For the Three Months Ended March 31, 2016
		Mortgage Loans										Consumer and Other Loans
					Multi-Family			Commercial Real Estate
(In Thousands)	Residential				Multi-Family			Commercial Real Estate								Total
Balance at January 1, 2016		$	44,951		$	35,544			$	11,217			$	6,288		$	98,000
Provision charged (credited) to operations		138			(3,257		)		(849		)		841			(3,127		)
Charge-offs		(1,665		)	(310		)		—				(765		)	(2,740		)
Recoveries		954			1,043				—				70			2,067
Balance at March 31, 2016		$	44,378		$	33,020			$	10,368			$	6,434		$	94,200

The following table sets forth the balances of our residential interest-only mortgage loans at March 31, 2017 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 (1)	$	206,063
13 to 24 months	24,107
25 to 36 months	10,314
Over 36 months	5,467
Total	$	245,951


(1)	Includes $14.4 million of past due loans that were scheduled to enter amortization prior to March 31, 2017.

Pursuant to federal regulations and our policy, loans considered to be of lesser quality are rated as special mention, substandard, doubtful or loss. A loan rated as special mention has potential weaknesses, which, if uncorrected, may result in the deterioration of the repayment prospects or in our credit position at some future date. A loan rated as substandard is inadequately protected by the current net worth and paying capacity of the obligor or the collateral pledged, if any. Substandard loans include those characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected. Loans rated as doubtful have all of the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses present make collection or liquidation in full satisfaction of the loan amount, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Loans rated as loss are those considered uncollectable and of such little value that their continuance as assets without the establishment of a specific loss reserve is not warranted. Those assets classified as substandard, doubtful or loss are considered adversely classified.

The following tables set forth the balances of our loan portfolio segments by credit quality indicator at the dates indicated.



	At March 31, 2017
	Mortgage Loans								Consumer and Other Loans
(In Thousands)	Residential		Multi-Family			Commercial Real Estate			Home Equity and Other Consumer			Commercial and Industrial			Total
Not criticized	$	5,019,425		$	3,984,135		$	673,838		$	130,219		$	89,075	$	9,896,692
Criticized:
Special mention	12,849			23,777			6,856			495			1,867		45,844
Substandard	182,496			15,852			20,181			4,139			32		222,700
Doubtful	—			—			—			—			—		—
Total	$	5,214,770		$	4,023,764		$	700,875		$	134,853		$	90,974	$	10,165,236



	At December 31, 2016
	Mortgage Loans								Consumer and Other Loans
(In Thousands)	Residential		Multi-Family			Commercial Real Estate			Home Equity and Other Consumer			Commercial and Industrial			Total
Not criticized	$	5,158,878		$	4,005,703		$	702,697		$	134,305		$	99,087	$	10,100,670
Criticized:
Special mention	14,922			24,804			9,235			550			647		50,158
Substandard	191,563			16,115			17,327			4,483			42		229,530
Doubtful	—			—			—			—			—		—
Total	$	5,365,363		$	4,046,622		$	729,259		$	139,338		$	99,776	$	10,380,358

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 March 31, 2017
	Mortgage Loans							Consumer and Other Loans
			Multi-Family		Commercial Real Estate
(In Thousands)	Residential		Multi-Family		Commercial Real Estate					Total
Loans:
Individually evaluated for impairment	$	190,955	$	6,059		$	11,429	$	3,928	$	212,371
Collectively evaluated for impairment	5,023,815		4,017,705			689,446		221,899		9,952,865
Total loans	$	5,214,770	$	4,023,764		$	700,875	$	225,827	$	10,165,236
Allowance for loan losses:
Individually evaluated for impairment	$	8,691	$	1		$	70	$	286	$	9,048
Collectively evaluated for impairment	25,660		33,948			8,835		5,009		73,452
Total allowance for loan losses	$	34,351	$	33,949		$	8,905	$	5,295	$	82,500



	At December 31, 2016
	Mortgage Loans							Consumer and Other Loans
			Multi-Family		Commercial Real Estate
(In Thousands)	Residential		Multi-Family		Commercial Real Estate					Total
Loans:
Individually evaluated for impairment	$	192,427	$	7,112		$	10,033	$	4,091	$	213,663
Collectively evaluated for impairment	5,172,936		4,039,510			719,226		235,023		10,166,695
Total loans	$	5,365,363	$	4,046,622		$	729,259	$	239,114	$	10,380,358
Allowance for loan losses:
Individually evaluated for impairment	$	9,044	$	24		$	—	$	310	$	9,378
Collectively evaluated for impairment	27,395		34,877			9,299		5,151		76,722
Total allowance for loan losses	$	36,439	$	34,901		$	9,299	$	5,461	$	86,100

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



	At March 31, 2017									At December 31, 2016
(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	$	17,600	$	13,753	$	(1,634	)	$	12,119	$	21,202	$	16,535	$	(1,863	)	$	14,672
Full documentation amortizing	89,948		81,243		(3,373		)	77,870		88,106		79,584		(3,494		)	76,090
Reduced documentation interest-only	18,646		15,673		(1,367		)	14,306		28,637		23,090		(1,589		)	21,501
Reduced documentation amortizing	88,981		77,591		(2,317		)	75,274		79,670		70,623		(2,098		)	68,525
Multi-family	1,449		1,449		(1		)	1,448		2,427		2,432		(24		)	2,408
Commercial real estate	2,266		2,266		(70		)	2,196		—		—		—			—
Consumer and other loans:
Home equity lines of credit	4,261		3,896		(286		)	3,610		4,414		4,049		(310		)	3,739
Without an allowance recorded:
Mortgage loans:
Residential:
Reduced documentation amortizing	3,123		2,695		—			2,695		2,965		2,595		—			2,595
Multi-family	5,164		4,610		—			4,610		5,272		4,680		—			4,680
Commercial real estate	10,812		9,163		—			9,163		11,791		10,033		—			10,033
Consumer and other loans:
Commercial and industrial	80		32		—			32		90		42		—			42
Total impaired loans	$	242,330	$	212,371	$	(9,048	)	$	203,323	$	244,574	$	213,663	$	(9,378	)	$	204,285

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 periods indicated.



	For the Three Months Ended March 31,
	2017						2016
(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	$	15,144	$	153	$	156	$	29,462	$	189	$	186
Full documentation amortizing	80,414		624		614		64,858		494		478
Reduced documentation interest-only	19,382		111		103		43,118		391		385
Reduced documentation amortizing	74,107		757		738		57,203		525		529
Multi-family	1,941		26		26		6,813		67		79
Commercial real estate	1,133		34		30		3,875		6		7
Consumer and other loans:
Home equity lines of credit	3,973		13		13		4,753		5		9
Without an allowance recorded:
Mortgage loans:
Residential:
Reduced documentation amortizing	2,645		23		21		—		—		—
Multi-family	4,645		51		55		13,375		152		149
Commercial real estate	9,598		128		129		10,206		166		171
Consumer and other loans:
Commercial and industrial	37		2		2		—		—		—
Total impaired loans	$	213,019	$	1,922	$	1,887	$	233,663	$	1,995	$	1,993

The following table sets forth information about our mortgage loans receivable by segment and class at March 31, 2017 and 2016 which were modified in a troubled debt restructuring, or TDR, during the periods indicated. Modifications in a TDR for the three months ended March 31, 2017 included interest rate modifications of $1.7 million. In addition, $884,000 of loans at March 31, 2017 were classified as TDRs as a result of relief granted under Chapter 7 bankruptcy filings.



	Modifications During the Three Months Ended March 31,
	2017								2016
(Dollars In Thousands)	Number of Loans		Pre- Modification Recorded Investment			Recorded Investment at March 31, 2017			Number of Loans		Pre- Modification Recorded Investment			Recorded Investment at March 31, 2016
Residential:
Full documentation interest-only		1		$	196		$	189		4		$	888		$	889
Full documentation amortizing		2		485			482			2		591			589
Reduced documentation interest-only		3		1,121			1,099			3		1,691			1,686
Reduced documentation amortizing		4		795			788			3		995			985
Total		10		$	2,597		$	2,558		12		$	4,165		$	4,149

The following table sets forth information about our mortgage loans receivable by segment and class at March 31, 2017 and 2016 which were modified in a TDR during the twelve month periods ended March 31, 2017 and 2016 and had a subsequent payment default during the periods indicated.



	For the Three Months Ended March 31,
	2017					2016
(Dollars In Thousands)	Number of Loans		Recorded Investment at March 31, 2017			Number of Loans		Recorded Investment at March 31, 2016
Residential:
Full documentation interest-only		3		$	1,078		2		$	533
Full documentation amortizing		4		1,566			2		408
Reduced documentation interest-only		2		1,063			4		1,947
Reduced documentation amortizing		—		—			1		288
Total		9		$	3,707		9		$	3,176

Included in loans receivable at March 31, 2017 are loans in the process of foreclosure collateralized by residential real estate property with a recorded investment of $75.0 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.”