Loans Receivable and Allowance for Loan Losses

6 Months Ended

Jun. 30, 2011

Loans Receivable and Allowance for Loan Losses

4. Loans Receivable and Allowance for Loan Losses

The following table sets forth the composition of our loans receivable portfolio in dollar amounts and percentages of the portfolio at the dates indicated.

	At June 30, 2011						At December 31, 2010
				Percent						Percent
(Dollars in Thousands)	Amount			of Total			Amount			of Total
Mortgage loans (gross):
One-to-four family	$	10,550,997			78.57	%	$	10,855,061			76.77	%
Multi-family		1,846,053			13.75			2,187,869			15.47
Commercial real estate		723,547			5.39			771,654			5.46
Construction		14,003			0.10			15,145			0.11
Total mortgage loans		13,134,600			97.81			13,829,729			97.81
Consumer and other loans (gross):
Home equity		270,093			2.01			282,453			2.00
Other		24,078			0.18			26,887			0.19
Total consumer and other loans		294,171			2.19			309,340			2.19
Total loans		13,428,771			100.00	%		14,139,069			100.00	%
Net unamortized premiums and deferred loan origination costs		78,808						83,978
Loans receivable		13,507,579						14,223,047
Allowance for loan losses		(182,717	)					(201,499	)
Loans receivable, net	$	13,324,862					$	14,021,548

The following tables set forth an aging analysis of our loans receivable by segment and class at the dates indicated.

	At June 30, 2011
	30-59 Days		60-89 Days		90 Days or More Past Due					Total
(In Thousands)	Past Due		Past Due		Accruing			Non-Accrual		Past Due		Current		Total
Mortgage loans:
One-to-four family:
Full documentation:
Interest-only	$	41,244	$	12,431		$	-	$	109,683	$	163,358	$	3,165,167	$	3,328,525
Amortizing		26,353		6,846			-		37,590		70,789		5,494,044		5,564,833
Reduced documentation:
Interest-only		35,542		12,478			-		145,816		193,836		1,038,718		1,232,554
Amortizing		15,350		3,406			-		36,470		55,226		369,859		425,085
Multi-family		33,128		6,568			613		29,275		69,584		1,776,469		1,846,053
Commercial real estate		7,529		2,173			-		6,363		16,065		707,482		723,547
Construction		-		-			-		5,299		5,299		8,704		14,003
Consumer and other loans:
Home equity lines of credit		3,511		432			-		5,099		9,042		261,051		270,093
Other		136		57			-		132		325		23,753		24,078
Total loans	$	162,793	$	44,391		$	613	$	375,727	$	583,524	$	12,845,247	$	13,428,771

	At December 31, 2010
	30-59 Days		60-89 Days		90 Days or More Past Due					Total
(In Thousands)	Past Due		Past Due		Accruing			Non-Accrual		Past Due		Current		Total
Mortgage loans:
One-to-four family:
Full documentation:
Interest-only	$	41,608	$	18,029		$	-	$	105,982	$	165,619	$	3,646,143	$	3,811,762
Amortizing		29,666		5,170			464		45,256		80,556		5,191,615		5,272,171
Reduced documentation:
Interest-only		38,864		20,493			-		157,464		216,821		1,114,473		1,331,294
Amortizing		14,965		4,170			-		33,149		52,284		387,550		439,834
Multi-family		33,627		6,056			381		29,814		69,878		2,117,991		2,187,869
Commercial real estate		2,925		-			-		6,529		9,454		762,200		771,654
Construction		-		-			-		6,097		6,097		9,048		15,145
Consumer and other loans:
Home equity lines of credit		3,991		351			-		5,464		9,806		272,647		282,453
Other		164		70			-		110		344		26,543		26,887
Total loans	$	165,810	$	54,339		$	845	$	389,865	$	610,859	$	13,528,210	$	14,139,069

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, 2011
	Mortgage Loans																Consumer and Other Loans				Total
(In Thousands)	One-to-Four Family				Multi- Family				Commercial Real Estate				Construction
Balance at April 1, 2011		$	117,722			$	49,396			$	14,782			$	3,502			$	4,084			$	189,486
Provision charged to operations			8,739				825				544				(245	)			137				10,000
Charge-offs			(15,768	)			(3,752	)			(756	)			(420	)			(212	)			(20,908	)
Recoveries			4,020				-				-				64				55				4,139
Balance at June 30, 2011		$	114,713			$	46,469			$	14,570			$	2,901			$	4,064			$	182,717

	For the Six Months Ended June 30, 2011
	Mortgage Loans																Consumer and Other Loans				Total
(In Thousands)	One-to-Four Family				Multi- Family				Commercial Real Estate				Construction
Balance at January 1, 2011		$	125,524			$	52,786			$	15,563			$	3,480			$	4,146			$	201,499
Provision charged to operations			16,283				373				(237	)			(223	)			804				17,000
Charge-offs			(33,479	)			(6,696	)			(756	)			(420	)			(967	)			(42,318	)
Recoveries			6,385				6				-				64				81				6,536
Balance at June 30, 2011		$	114,713			$	46,469			$	14,570			$	2,901			$	4,064			$	182,717

The following tables set forth the balances of our loans receivable by segment and impairment evaluation and the allowance for loan losses associated with such loans at the dates indicated.

	At June 30, 2011
	Mortgage Loans												Consumer and Other Loans		Total
(In Thousands)	One-to-Four Family			Multi- Family			Commercial Real Estate			Construction
Loans:
Individually evaluated for impairment		$	321,084		$	951,483		$	358,819		$	6,445	$	3,301	$	1,641,132
Collectively evaluated for impairment			10,229,913			894,570			364,728			7,558		290,870		11,787,639
Total loans		$	10,550,997		$	1,846,053		$	723,547		$	14,003	$	294,171	$	13,428,771
Allowance for loan losses:
Individually evaluated for impairment		$	10,210		$	31,089		$	10,185		$	2,662	$	50	$	54,196
Collectively evaluated for impairment			104,503			15,380			4,385			239		4,014		128,521
Total allowance for loan losses		$	114,713		$	46,469		$	14,570		$	2,901	$	4,064	$	182,717

	At December 31, 2010
	Mortgage Loans												Consumer and Other Loans		Total
(In Thousands)	One-to-Four Family			Multi- Family			Commercial Real Estate			Construction
Loans:
Individually evaluated for impairment		$	315,994		$	1,144,633		$	385,904		$	7,872	$	3,414	$	1,857,817
Collectively evaluated for impairment			10,539,067			1,043,236			385,750			7,273		305,926		12,281,252
Total loans		$	10,855,061		$	2,187,869		$	771,654		$	15,145	$	309,340	$	14,139,069
Allowance for loan losses:
Individually evaluated for impairment		$	12,541		$	34,124		$	10,784		$	3,250	$	51	$	60,750
Collectively evaluated for impairment			112,983			18,662			4,779			230		4,095		140,749
Total allowance for loan losses		$	125,524		$	52,786		$	15,563		$	3,480	$	4,146	$	201,499

The following table summarizes information related to our impaired loans by segment and class at the dates indicated.  Impaired one-to-four family mortgage loans consist primarily of loans where a portion of the outstanding principal has been charged off.

	At June 30, 2011									At December 31, 2010
(In Thousands)	Unpaid Principal Balance		Recorded Investment		Related Allowance			Net Investment		Unpaid Principal Balance		Recorded Investment		Related Allowance			Net Investment
With an allowance recorded:
One-to-four family:
Full documentation:
Interest-only	$	10,307	$	10,307	$	(1,238	)	$	9,069	$	11,033	$	11,033	$	(1,980	)	$	9,053
Amortizing		3,966		3,966		(467	)		3,499		7,340		7,340		(947	)		6,393
Reduced documentation:
Interest-only		11,508		11,508		(1,384	)		10,124		10,234		10,234		(2,500	)		7,734
Amortizing		1,066		1,066		(131	)		935		1,032		1,032		(239	)		793
Multi-family		53,844		53,134		(14,278	)		38,856		51,793		51,084		(14,349	)		36,735
Commercial real estate		21,604		20,500		(4,913	)		15,587		19,929		18,825		(5,496	)		13,329
Construction		5,916		5,806		(2,662	)		3,144		6,546		6,435		(2,851	)		3,584
Without an allowance recorded:
One-to-four family:
Full documentation:
Interest-only		92,071		66,285		-			66,285		87,110		64,185		-			64,185
Amortizing		18,102		13,904		-			13,904		15,363		11,883		-			11,883
Reduced documentation:
Interest-only		150,797		106,652		-			106,652		145,091		105,905		-			105,905
Amortizing		18,639		14,134		-			14,134		15,786		12,009		-			12,009
Construction		1,200		639		-			639		1,200		639		-			639
Total impaired loans	$	389,020	$	307,901	$	(25,073	)	$	282,828	$	372,457	$	300,604	$	(28,362	)	$	272,242

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 June 30, 2011						For the Six Months Ended June 30, 2011
(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:
One-to-four family:
Full documentation:
Interest-only	$	10,498	$	101	$	115	$	10,676	$	216	$	216
Amortizing		5,943		50		44		6,409		86		83
Reduced documentation:
Interest-only		11,268		105		117		10,923		257		270
Amortizing		1,186		11		11		1,135		24		23
Multi-family		54,409		542		626		53,301		1,280		1,310
Commercial real estate		19,896		334		318		19,539		665		651
Construction		6,121		25		28		6,225		56		59
Without an allowance recorded:
One-to-four family:
Full documentation:
Interest-only		65,421		258		322		65,009		459		590
Amortizing		12,882		14		22		12,549		18		36
Reduced documentation:
Interest-only		107,999		548		583		107,301		958		1,032
Amortizing		14,045		47		55		13,366		105		116
Construction		639		-		-		639		-		-
Total impaired loans	$	310,307	$	2,035	$	2,241	$	307,072	$	4,124	$	4,386

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

	At June 30, 2011
	One-to-Four Family Mortgage Loans												Consumer and Other Loans
	Full Documentation						Reduced Documentation						Home Equity Lines of Credit			Other
(In Thousands)	Interest-only			Amortizing			Interest-only			Amortizing
Performing		$	3,218,842		$	5,527,243		$	1,086,738		$	388,615		$	264,994		$	23,946
Non-performing			109,683			37,590			145,816			36,470			5,099			132
Total		$	3,328,525		$	5,564,833		$	1,232,554		$	425,085		$	270,093		$	24,078

	At December 31, 2010
	One-to-Four Family Mortgage Loans												Consumer and Other Loans
	Full Documentation						Reduced Documentation						Home Equity Lines of Credit			Other
(In Thousands)	Interest-only			Amortizing			Interest-only			Amortizing
Performing		$	3,705,780		$	5,226,451		$	1,173,830		$	406,685		$	276,989		$	26,777
Non-performing			105,982			45,720			157,464			33,149			5,464			110
Total		$	3,811,762		$	5,272,171		$	1,331,294		$	439,834		$	282,453		$	26,887

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

	At June 30, 2011									At December 31, 2010
(In Thousands)	Multi-Family Mortgage Loans			Commercial Real Estate Loans			Construction Loans			Multi-Family Mortgage Loans			Commercial Real Estate Loans			Construction Loans
Not classified		$	1,656,572		$	648,016		$	7,601		$	2,035,111		$	707,237		$	7,315
Classified			189,481			75,531			6,402			152,758			64,417			7,830
Total		$	1,846,053		$	723,547		$	14,003		$	2,187,869		$	771,654		$	15,145

For additional information regarding the composition of our loan portfolio, non-performing loans and our allowance for loan losses, see “Asset Quality” in Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” or “MD&A.