Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2012

Fair Value Measurements

Schedule of carrying values of assets measured at fair value on recurring basis and level within the fair value hierarchy

	Carrying Value at December 31, 2012
(In Thousands)	Total		Level 1		Level 2
Securities available-for-sale:
Residential mortgage-backed securities:
GSE issuance REMICs and CMOs	$	204,827	$	-	$	204,827
Non-GSE issuance REMICs and CMOs	11,219		-		11,219
GSE pass-through certificates	21,375		-		21,375
Obligations of GSEs	98,879		-		98,879
Fannie Mae stock	-		-		-
Total securities available-for-sale	$	336,300	$	-	$	336,300

	Carrying Value at December 31, 2011
(In Thousands)	Total		Level 1		Level 2
Securities available-for-sale:
Residential mortgage-backed securities:
GSE issuance REMICs and CMOs	$	298,620	$	-	$	298,620
Non-GSE issuance REMICs and CMOs	15,795		-		15,795
GSE pass-through certificates	25,192		-		25,192
Freddie Mac and Fannie Mae stock	4,580		4,580		-
Total securities available-for-sale	$	344,187	$	4,580	$	339,607

Schedule of carrying values of assets measured at fair value on non-recurring basis which fall within Level 3 of the fair value hierarchy

	Carrying Value at December 31,
(In Thousands)		2012		2011
Non-performing loans held-for-sale, net		$	3,881	$	19,744
Impaired loans		282,723		232,849
MSR, net		6,947		8,136
REO, net		20,796		36,956
Total		$	314,347	$	297,685

Schedule of losses recognized on assets measured at fair value on non-recurring basis

	For the Year Ended December 31,
(In Thousands)	2012		2011		2010
Non-performing loans held-for-sale, net (1)	$	1,066	$	10,020	$	5,374
Impaired loans (2)	40,018		48,080		52,022
MSR, net (3)	931		148		-
REO, net (4)	3,137		6,677		12,104
Total	$	45,152	$	64,925	$	69,500

(1)	Losses are charged against the allowance for loan losses in the case of a write-down upon the reclassification of a loan to held-for-sale. Losses subsequent to the reclassification of a loan to held-for-sale are charged to other non-interest income.
(2)	Losses are charged against the allowance for loan losses.
(3)	Losses are charged to mortgage banking income, net.
(4)	Losses are charged against the allowance for loan losses in the case of a write-down upon the transfer of a loan to REO. Losses subsequent to the transfer of a loan to REO are charged to REO expense which is a component of other non-interest expense.

Schedule of carrying values and estimated fair values of financial instruments

	At December 31, 2012
	Carrying		Estimated Fair Value
(In Thousands)	Value		Total		Level 2		Level 3
Financial Assets:
Securities held-to-maturity	$	1,700,141	$	1,725,090	$	1,725,090	$	-
FHLB-NY stock	171,194		171,194		171,194		-
Loans held-for-sale, net (1)	76,306		78,486		-		78,486
Loans receivable, net (1)	13,078,471		13,311,997		-		13,311,997
MSR, net (1)	6,947		6,948		-		6,948
Financial Liabilities:
Deposits	10,443,958		10,588,073		10,588,073		-
Borrowings, net	4,373,496		4,857,989		4,857,989		-

(1) Includes assets measured at fair value on a non-recurring basis.

	At December 31, 2011
	Carrying		Estimated Fair Value
(In Thousands)	Value		Total		Level 2		Level 3
Financial Assets:
Securities held-to-maturity	$	2,130,804	$	2,176,925	$	2,176,925	$	-
FHLB-NY stock	131,667		131,667		131,667		-
Loans held-for-sale, net (1)	32,394		32,611		-		32,611
Loans receivable, net (1)	13,117,419		13,368,354		-		13,368,354
MSR, net (1)	8,136		8,137		-		8,137
Financial Liabilities:
Deposits	11,245,614		11,416,033		11,416,033		-
Borrowings, net	4,121,573		4,624,636		4,624,636		-

(1) Includes assets measured at fair value on a non-recurring basis.