4. 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, 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	$	18,647	$	5,809	$	—	$	24,456	$	1,040,211	$	1,064,667
Full documentation amortizing	30,266		7,717		—		37,983		5,111,329		5,149,312
Reduced documentation interest-only	24,048		5,559		—		29,607		618,429		648,036
Reduced documentation amortizing	8,466		3,362		—		11,828		368,120		379,948
Total residential	81,427		22,447		—		103,874		7,138,089		7,241,963
Multi-family	2,009		3,549		—		5,558		3,564,810		3,570,368
Commercial real estate	181		498		—		679		853,757		854,436
Total mortgage loans	83,617		26,494		—		110,111		11,556,656		11,666,767
Consumer and other loans (gross):
Home equity lines of credit	2,820		505		—		3,325		179,769		183,094
Other	114		19		—		133		50,238		50,371
Total consumer and other loans	2,934		524		—		3,458		230,007		233,465
Total accruing loans	$	86,551	$	27,018	$	—	$	113,569	$	11,786,663	$	11,900,232
Non-accrual loans:
Mortgage loans (gross):
Residential:
Full documentation interest-only	$	1,761	$	177	$	5,565	$	7,503	$	20,046	$	27,549
Full documentation amortizing	381		—		6,542		6,923		6,454		13,377
Reduced documentation interest-only	1,747		579		8,066		10,392		26,150		36,542
Reduced documentation amortizing	657		232		1,550		2,439		2,804		5,243
Total residential	4,546		988		21,723		27,257		55,454		82,711
Multi-family	82		—		10,324		10,406		2,834		13,240
Commercial real estate	1,454		1,569		438		3,461		4,551		8,012
Total mortgage loans	6,082		2,557		32,485		41,124		62,839		103,963
Consumer and other loans (gross):
Home equity lines of credit	—		—		5,648		5,648		79		5,727
Other	—		—		37		37		—		37
Total consumer and other loans	—		—		5,685		5,685		79		5,764
Total non-accrual loans	$	6,082	$	2,557	$	38,170	$	46,809	$	62,918	$	109,727
Total loans:
Mortgage loans (gross):
Residential:
Full documentation interest-only	$	20,408	$	5,986	$	5,565	$	31,959	$	1,060,257	$	1,092,216
Full documentation amortizing	30,647		7,717		6,542		44,906		5,117,783		5,162,689
Reduced documentation interest-only	25,795		6,138		8,066		39,999		644,579		684,578
Reduced documentation amortizing	9,123		3,594		1,550		14,267		370,924		385,191
Total residential	85,973		23,435		21,723		131,131		7,193,543		7,324,674
Multi-family	2,091		3,549		10,324		15,964		3,567,644		3,583,608
Commercial real estate	1,635		2,067		438		4,140		858,308		862,448
Total mortgage loans	89,699		29,051		32,485		151,235		11,619,495		11,770,730
Consumer and other loans (gross):
Home equity lines of credit	2,820		505		5,648		8,973		179,848		188,821
Other	114		19		37		170		50,238		50,408
Total consumer and other loans	2,934		524		5,685		9,143		230,086		239,229
Total loans	$	92,633	$	29,575	$	38,170	$	160,378	$	11,849,581	$	12,009,959
Net unamortized premiums and deferred loan origination costs											51,663
Loans receivable											12,061,622
Allowance for loan losses											(118,600		)
Loans receivable, net											$	11,943,022

	At December 31, 2013
	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	$	27,291	$	5,220	$	—	$	32,511	$	1,249,462	$	1,281,973
Full documentation amortizing	31,189		7,415		151		38,755		5,325,944		5,364,699
Reduced documentation interest-only	22,635		5,208		—		27,843		693,660		721,503
Reduced documentation amortizing	8,993		2,311		—		11,304		352,322		363,626
Total residential	90,108		20,154		151		110,413		7,621,388		7,731,801
Multi-family	12,740		970		—		13,710		3,270,206		3,283,916
Commercial real estate	1,729		1,690		233		3,652		801,690		805,342
Total mortgage loans	104,577		22,814		384		127,775		11,693,284		11,821,059
Consumer and other loans (gross):
Home equity lines of credit	3,000		1,321		—		4,321		189,540		193,861
Other	177		19		—		196		39,644		39,840
Total consumer and other loans	3,177		1,340		—		4,517		229,184		233,701
Total accruing loans	$	107,754	$	24,154	$	384	$	132,292	$	11,922,468	$	12,054,760
Non-accrual loans:
Mortgage loans (gross):
Residential:
Full documentation interest-only	$	2,185	$	582	$	78,271	$	81,038	$	19,190	$	100,228
Full documentation amortizing	1,327		653		41,934		43,914		10,844		54,758
Reduced documentation interest-only	2,065		579		87,910		90,554		27,604		118,158
Reduced documentation amortizing	617		425		26,112		27,154		5,177		32,331
Total residential	6,194		2,239		234,227		242,660		62,815		305,475
Multi-family	1,104		357		9,054		10,515		2,024		12,539
Commercial real estate	930		—		921		1,851		5,773		7,624
Total mortgage loans	8,228		2,596		244,202		255,026		70,612		325,638
Consumer and other loans (gross):
Home equity lines of credit	—		—		5,916		5,916		32		5,948
Other	—		—		32		32		—		32
Total consumer and other loans	—		—		5,948		5,948		32		5,980
Total non-accrual loans	$	8,228	$	2,596	$	250,150	$	260,974	$	70,644	$	331,618
Total loans:
Mortgage loans (gross):
Residential:
Full documentation interest-only	$	29,476	$	5,802	$	78,271	$	113,549	$	1,268,652	$	1,382,201
Full documentation amortizing	32,516		8,068		42,085		82,669		5,336,788		5,419,457
Reduced documentation interest-only	24,700		5,787		87,910		118,397		721,264		839,661
Reduced documentation amortizing	9,610		2,736		26,112		38,458		357,499		395,957
Total residential	96,302		22,393		234,378		353,073		7,684,203		8,037,276
Multi-family	13,844		1,327		9,054		24,225		3,272,230		3,296,455
Commercial real estate	2,659		1,690		1,154		5,503		807,463		812,966
Total mortgage loans	112,805		25,410		244,586		382,801		11,763,896		12,146,697
Consumer and other loans (gross):
Home equity lines of credit	3,000		1,321		5,916		10,237		189,572		199,809
Other	177		19		32		228		39,644		39,872
Total consumer and other loans	3,177		1,340		5,948		10,465		229,216		239,681
Total loans	$	115,982	$	26,750	$	250,534	$	393,266	$	11,993,112	$	12,386,378
Net unamortized premiums and deferred loan origination costs											55,688
Loans receivable											12,442,066
Allowance for loan losses											(139,000		)
Loans receivable, net											$	12,303,066

As discussed in Note 3, at June 30, 2014, we designated a pool of non-accrual residential mortgage loans, substantially all of which were 90 days or more past due, as held-for-sale. The pool is carried in our consolidated statement of financial condition as non-performing residential mortgage loans held-for-sale at its estimated fair value of $186.3 million at June 30, 2014 and is therefore not included in loans receivable and related disclosures and tables as of June 30, 2014. 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, to write down the pool of loans from its recorded investment of $195.0 million to its estimated fair value, and a loan loss release of $5.7 million, included in the provision for loan losses credited to operations for the three and six months ended June 30, 2014, reflecting reserves previously established in our allowance for loan losses that were no longer deemed necessary following the designation of the pool of loans as held-for-sale.

We segment our 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, geographic location and origination time periods. We analyze our consumer and other loan portfolio by home equity lines of credit, commercial loans, revolving credit lines and installment loans and perform similar historical loss analyses.

We analyze our historical loss experience over twelve, fifteen, eighteen and twenty-four 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 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 two years for substantially all of the loan portfolio, with the exception of multi-family and commercial real estate loans originated after 2010, for which our evaluation includes detailed modeling techniques. We update our historical loss analyses 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 portfolio.

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 in determining our allowance for loan losses. Allocations of the allowance to each loan category are adjusted quarterly to reflect probable inherent losses using the same quantitative and qualitative analyses used in connection with the overall allowance adequacy calculations. 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, 2014
	Mortgage Loans												Consumer
(In Thousands)	Residential				Multi- Family				Commercial Real Estate				and Other Loans				Total
Balance at April 1, 2014		$	74,717			$	34,578			$	14,698			$	10,007		$	134,000
Provision (credited) charged to operations		(9,132		)		2,686				735				(31		)	(5,742		)
Charge-offs		(12,834		)		(270		)		—				(527		)	(13,631		)
Recoveries		3,801				81				—				91			3,973
Balance at June 30, 2014		$	56,552			$	37,075			$	15,433			$	9,540		$	118,600

	For the Six Months Ended June 30, 2014
	Mortgage Loans												Consumer
(In Thousands)	Residential				Multi- Family				Commercial Real Estate				and Other Loans				Total
Balance at January 1, 2014		$	80,337			$	36,703			$	13,136			$	8,824		$	139,000
Provision (credited) charged to operations		(12,608		)		1,274				5,273				1,950			(4,111		)
Charge-offs		(16,927		)		(1,139		)		(2,976		)		(1,424		)	(22,466		)
Recoveries		5,750				237				—				190			6,177
Balance at June 30, 2014		$	56,552			$	37,075			$	15,433			$	9,540		$	118,600

	For the Three Months Ended June 30, 2013
	Mortgage Loans												Consumer
(In Thousands)	Residential				Multi- Family				Commercial Real Estate				and Other Loans				Total
Balance at April 1, 2013		$	91,546			$	33,952			$	12,395			$	6,357		$	144,250
Provision (credited) charged to operations		(9,077		)		7,461				4,785				1,357			4,526
Charge-offs		(6,459		)		(597		)		(826		)		(222		)	(8,104		)
Recoveries		2,778				49				288				113			3,228
Balance at June 30, 2013		$	78,788			$	40,865			$	16,642			$	7,605		$	143,900

	For the Six Months Ended June 30, 2013
	Mortgage Loans												Consumer
(In Thousands)	Residential				Multi- Family				Commercial Real Estate				and Other Loans				Total
Balance at January 1, 2013		$	89,267			$	35,514			$	14,404			$	6,316		$	145,501
Provision (credited) charged to operations		(171		)		7,652				3,970				2,201			13,652
Charge-offs		(14,772		)		(3,538		)		(2,020		)		(1,128		)	(21,458		)
Recoveries		4,464				1,237				288				216			6,205
Balance at June 30, 2013		$	78,788			$	40,865			$	16,642			$	7,605		$	143,900

The following table sets forth the balances of our residential interest-only mortgage loans at June 30, 2014 by the period in which such loans are scheduled to enter their amortization period.

(In Thousands)	Recorded Investment
Amortization scheduled to begin in:
Twelve months or less	$	381,032
Thirteen to twenty-four months	668,564
Twenty-five to thirty-six months	431,858
Over thirty-six months	295,340
Total	$	1,776,794

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, 2014
	Residential Mortgage Loans												Consumer and Other Loans
	Full Documentation						Reduced Documentation						Home Equity
(In Thousands)	Interest-only			Amortizing			Interest-only			Amortizing			Lines of Credit			Other
Performing		$	1,064,667		$	5,149,312		$	648,036		$	379,948		$	183,094	$	50,371
Non-performing:
Current or past due less than 90 days		21,984			6,835			28,476			3,693			79		—
Past due 90 days or more		5,565			6,542			8,066			1,550			5,648		37
Total		$	1,092,216		$	5,162,689		$	684,578		$	385,191		$	188,821	$	50,408

	At December 31, 2013
	Residential Mortgage Loans												Consumer and Other Loans
	Full Documentation						Reduced Documentation						Home Equity
(In Thousands)	Interest-only			Amortizing			Interest-only			Amortizing			Lines of Credit			Other
Performing		$	1,281,973		$	5,364,548		$	721,503		$	363,626		$	193,861	$	39,840
Non-performing:
Current or past due less than 90 days		21,957			12,824			30,248			6,219			32		—
Past due 90 days or more		78,271			42,085			87,910			26,112			5,916		32
Total		$	1,382,201		$	5,419,457		$	839,661		$	395,957		$	199,809	$	39,872

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, 2014						At December 31, 2013
(In Thousands)	Multi-Family			Commercial Real Estate			Multi-Family			Commercial Real Estate
Not criticized		$	3,526,105		$	816,216		$	3,209,786		$	759,114
Criticized:
Special mention		17,261			9,937			14,063			9,760
Substandard		40,242			36,295			72,606			44,092
Doubtful		—			—			—			—
Total		$	3,583,608		$	862,448		$	3,296,455		$	812,966

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, 2014
	Mortgage Loans							Consumer
(In Thousands)	Residential		Multi- Family		Commercial Real Estate			and Other Loans		Total
Loans:
Individually evaluated for impairment	$	177,038	$	48,551		$	20,162	$	5,323	$	251,074
Collectively evaluated for impairment	7,147,636		3,535,057			842,286		233,906		11,758,885
Total loans	$	7,324,674	$	3,583,608		$	862,448	$	239,229	$	12,009,959
Allowance for loan losses:
Individually evaluated for impairment	$	7,853	$	5,234		$	2,599	$	3,882	$	19,568
Collectively evaluated for impairment	48,699		31,841			12,834		5,658		99,032
Total allowance for loan losses	$	56,552	$	37,075		$	15,433	$	9,540	$	118,600

	At December 31, 2013
	Mortgage Loans							Consumer
(In Thousands)	Residential		Multi- Family		Commercial Real Estate			and Other Loans		Total
Loans:
Individually evaluated for impairment	$	311,930	$	52,538		$	20,054	$	—	$	384,522
Collectively evaluated for impairment	7,725,346		3,243,917			792,912		239,681		12,001,856
Total loans	$	8,037,276	$	3,296,455		$	812,966	$	239,681	$	12,386,378
Allowance for loan losses:
Individually evaluated for impairment	$	18,352	$	2,877		$	302	$	—	$	21,531
Collectively evaluated for impairment	61,985		33,826			12,834		8,824		117,469
Total allowance for loan losses	$	80,337	$	36,703		$	13,136	$	8,824	$	139,000

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


	At June 30, 2014													At December 31, 2013
(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		$	62,967		$	53,351		$	(2,339	)		$	51,012		$	142,659		$	109,877		$	(6,019	)	$	103,858
Full documentation amortizing		32,725			30,784			(1,065		)		29,719			41,136			36,091			(2,458		)	33,633
Reduced documentation interest-only		94,276			79,733			(3,721		)		76,012			183,280			140,357			(7,673		)	132,684
Reduced documentation amortizing		14,208			13,170			(728		)		12,442			30,660			25,605			(2,202		)	23,403
Multi-family		42,981			36,983			(5,234		)		31,749			19,748			19,748			(2,877		)	16,871
Commercial real estate		26,967			20,162			(2,599		)		17,563			5,790			5,790			(302		)	5,488
Consumer and other loans:
Home equity lines of credit		5,607			5,323			(3,882		)		1,441			—			—			—			—
Without an allowance recorded:
Mortgage loans:
Multi-family		12,647			11,568			—				11,568			39,871			32,790			—			32,790
Commercial real estate		—			—			—				—			19,988			14,264			—			14,264
Total impaired loans		$	292,378		$	251,074		$	(19,568	)		$	231,506		$	483,132		$	384,522		$	(21,531	)	$	362,991

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,
	2014									2013
(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		$	105,897		$	618		$	608		$	103,076		$	608		$	630
Full documentation amortizing		41,213			307			306			27,316			171			173
Reduced documentation interest-only		132,784			1,087			1,083			150,542			992			1,018
Reduced documentation amortizing		24,981			134			138			25,243			209			210
Multi-family		37,277			364			380			16,380			180			195
Commercial real estate		21,232			262			274			8,586			139			147
Consumer and other loans:
Home equity lines of credit		5,067			3			7			—			—			—
Without an allowance recorded:
Mortgage loans:
Residential:
Full documentation interest-only		—			—			—			19,119			96			91
Full documentation amortizing		913			—			—			6,153			17			15
Multi-family		11,782			136			137			32,404			346			389
Commercial real estate		—			—			—			11,137			51			134
Total impaired loans		$	381,146		$	2,911		$	2,933		$	399,956		$	2,809		$	3,002

	For the Six Months Ended June 30,
	2014									2013
(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		$	107,224		$	1,222		$	1,244		$	102,934		$	1,157		$	1,262
Full documentation amortizing		39,505			653			645			27,615			289			305
Reduced documentation interest-only		135,308			2,163			2,146			149,207			1,897			2,042
Reduced documentation amortizing		25,189			265			263			25,870			297			322
Multi-family		31,434			730			764			17,488			373			380
Commercial real estate		16,084			462			559			9,335			240			264
Consumer and other loans:
Home equity lines of credit		5,030			13			21			—			—			—
Without an allowance recorded:
Mortgage loans:
Residential:
Full documentation interest-only		—			—			—			19,244			166			170
Full documentation amortizing		609			—			—			5,861			67			65
Reduced documentation interest-only		—			—			—			2,781			—			—
Multi-family		18,785			274			275			33,740			745			796
Commercial real estate		4,755			—			—			10,028			225			259
Total impaired loans		$	383,923		$	5,782		$	5,917		$	404,103		$	5,456		$	5,865

The following tables set forth information about our mortgage loans receivable by segment and class at June 30, 2014 and 2013 which were modified in a troubled debt restructuring, or TDR, during the periods indicated.

	Modifications During the Three Months Ended June 30,
	2014					2013
(Dollars In Thousands)	Number of Loans	Pre- Modification Recorded Investment		Recorded Investment at June 30, 2014		Number of Loans	Pre- Modification Recorded Investment		Recorded Investment at June 30, 2013
Residential:
Full documentation interest-only	7	$	2,940	$	2,939	6	$	1,296	$	1,295
Full documentation amortizing	—	—		—		3	721		718
Reduced documentation interest-only	4	1,278		1,277		8	2,702		2,702
Reduced documentation amortizing	—	—		—		3	1,342		1,321
Multi-family	1	357		357		—	—		—
Commercial real estate	1	254		251		2	2,416		2,359
Total	13	$	4,829	$	4,824	22	$	8,477	$	8,395

	Modifications During the Six Months Ended June 30,
	2014					2013
(Dollars In Thousands)	Number of Loans	Pre- Modification Recorded Investment		Recorded Investment at June 30, 2014		Number of Loans	Pre- Modification Recorded Investment		Recorded Investment at June 30, 2013
Residential:
Full documentation interest-only	18	$	7,797	$	7,374	11	$	2,451	$	2,450
Full documentation amortizing	3	519		489		5	1,501		1,506
Reduced documentation interest-only	8	2,301		2,290		19	6,135		6,111
Reduced documentation amortizing	2	317		262		6	2,084		2,045
Multi-family	2	1,060		946		3	2,784		2,465
Commercial real estate	2	913		892		3	3,955		3,698
Total	35	$	12,907	$	12,253	47	$	18,910	$	18,275

The following table sets forth information about our mortgage loans receivable by segment and class at June 30, 2014 and 2013 which were modified in a TDR during the twelve month periods ended June 30, 2014 and 2013 and had a payment default subsequent to the modification during the periods indicated.

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2014			2013			2014			2013
(Dollars In Thousands)	Number of Loans	Recorded Investment at June 30, 2014		Number of Loans	Recorded Investment at June 30, 2013		Number of Loans	Recorded Investment at June 30, 2014		Number of Loans	Recorded Investment at June 30, 2013
Residential:
Full documentation interest-only	—	$	—	11	$	2,915	2	$	399	18	$	4,554
Full documentation amortizing	2	447		9	2,668		2	447		9	2,668
Reduced documentation interest-only	1	579		19	6,369		3	889		24	8,157
Reduced documentation amortizing	1	93		3	483		1	93		5	885
Commercial real estate	1	1,569		—	—		1	1,569		—	—
Total	5	$	2,688	42	$	12,435	9	$	3,397	56	$	16,264

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.”