Loans Receivable and Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2014

Loans receivable at June 30, 2014 and December 31, 2013 are summarized as follows (in thousands):



	June 30, 2014			December 31, 2013
Mortgage loans:
Residential	1,223,145			1,174,043
Commercial	1,669,614			1,400,624
Multi-family	968,242			928,906
Construction	227,433			183,289
Total mortgage loans	4,088,434			3,686,862
Commercial loans	1,201,741			932,199
Consumer loans	617,512			577,602
Total gross loans	5,907,687			5,196,663
Purchased credit-impaired ("PCI") loans	5,187			—
Premiums on purchased loans	4,380			4,202
Unearned discounts	(55		)	(62	)
Net deferred fees	(7,130		)	(5,990	)
	$	5,910,069		5,194,813

Summary of Aging Loans Receivable by Portfolio Segment and Class

The following tables summarize the aging of loans receivable by portfolio segment and class of loans, excluding PCI loans (in thousands):



	June 30, 2014
	30-59 Days		60-89 Days	Non-accrual	Total Past Due and Non-accrual	Current	Total Loans Receivable	Recorded Investment > 90 days accruing
Mortgage loans:
Residential	$	10,329	4,572	21,323	36,224	1,186,921	1,223,145	—
Commercial	—		—	19,439	19,439	1,650,175	1,669,614	—
Multi-family	—		—	403	403	967,839	968,242	—
Construction	—		—	—	—	227,433	227,433	—
Total mortgage loans	10,329		4,572	41,165	56,066	4,032,368	4,088,434	—
Commercial loans	385		1	20,914	21,300	1,180,441	1,201,741	—
Consumer loans	2,084		1,478	3,284	6,846	610,666	617,512	—
Total loans	$	12,798	6,051	65,363	84,212	5,823,475	5,907,687	—



	December 31, 2013
	30-59 Days		60-89 Days	Non-accrual	Total Past Due and Non-accrual	Current	Total Loans Receivable	Recorded Investment > 90 days accruing
Mortgage loans:
Residential	$	10,639	5,062	23,011	38,712	1,135,331	1,174,043	—
Commercial	687		318	18,662	19,667	1,380,957	1,400,624	—
Multi-family	—		—	403	403	928,503	928,906	—
Construction	—		—	8,448	8,448	174,841	183,289	—
Total mortgage loans	11,326		5,380	50,524	67,230	3,619,632	3,686,862	—
Commercial loans	305		77	22,228	22,610	909,589	932,199	—
Consumer loans	2,474		2,194	3,928	8,596	569,006	577,602	—
Total loans	$	14,105	7,651	76,680	98,436	5,098,227	5,196,663	—

Summary of Loans Receivable by Portfolio Segment and Impairment Method

The following table summarizes loans receivable by portfolio segment and impairment method, excluding PCI loans (in thousands):



	June 30, 2014
	Mortgage loans		Commercial loans	Consumer loans	Total Portfolio Segments
Individually evaluated for impairment	$	67,110	24,458	2,271	93,839
Collectively evaluated for impairment	4,021,324		1,177,283	615,241	5,813,848
Total	$	4,088,434	1,201,741	617,512	5,907,687



	December 31, 2013
	Mortgage loans		Commercial loans	Consumer loans	Total Portfolio Segments
Individually evaluated for impairment	$	75,839	28,210	2,321	106,370
Collectively evaluated for impairment	3,611,023		903,989	575,281	5,090,293
Total	$	3,686,862	932,199	577,602	5,196,663

Summary of Allowance for Loan Losses by Portfolio Segment and Impairment Classification

The allowance for loan losses is summarized by portfolio segment and impairment classification as follows (in thousands):



	June 30, 2014
	Mortgage loans		Commercial loans	Consumer loans	Total Portfolio Segments	Unallocated	Total
Individually evaluated for impairment	$	4,833	3,573	115	8,521	—	8,521
Collectively evaluated for impairment	26,207		23,506	4,266	53,979	1,375	55,354
Total	$	31,040	27,079	4,381	62,500	1,375	63,875



	December 31, 2013
	Mortgage loans		Commercial loans	Consumer loans	Total Portfolio Segments	Unallocated	Total
Individually evaluated for impairment	$	7,829	2,221	167	10,217	—	10,217
Collectively evaluated for impairment	26,315		21,886	4,762	52,963	1,484	54,447
	$	34,144	24,107	4,929	63,180	1,484	64,664

Schedule of Troubled Debt Restructuring

The following tables present the number of loans modified as TDRs during the three and six months ended June 30, 2014 and 2013 and their balances immediately prior to the modification date and post-modification as of June 30, 2014 and 2013.



	For the three months ended
	June 30, 2014					June 30, 2013
Troubled Debt Restructuring	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
	($ in thousands)
Mortgage loans:
Residential	4	$	1,088	$	847	18	$	4,227	$	4,339
Commercial	1	865		870		—	—		—
Total mortgage loans	5	1,953		1,717		18	4,227		4,339
Commercial loans	1	300		300		—	—		—
Consumer loans	—	—		—		2	228		222
Total restructured loans	6	$	2,253	$	2,017	20	$	4,455	$	4,561



	For the six months ended
	June 30, 2014					June 30, 2013
Troubled Debt Restructuring	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
	($ in thousands)
Mortgage loans:
Residential	8	$	1,963	1,677		33	$	7,029	$	7,203
Commercial	1	865		870		1	329		307
Total mortgage loans	9	2,828		2,547		34	7,358		7,510
Commercial loans	1	300		300		—	—		—
Consumer loans	—	—		—		5	468		461
Total restructured loans	10	$	3,128	$	2,847	39	$	7,826	$	7,971

Schedule of Troubled Debt Restructurings Subsequently Defaulted

The following table presents loans modified as TDRs within the previous 12 months from June 30, 2014 and 2013, and for which there was a payment default (90 days or more past due) at the quarter ended June 30, 2014 and 2013.



	June 30, 2014			June 30, 2013
Troubled Debt Restructurings Subsequently Defaulted	Number of Loans	Outstanding Recorded Investment		Number of Loans	Outstanding Recorded Investment
		($ in thousands)			($ in thousands)
Mortgage loans:
Residential	2	$	264	1	$	1,445
Total mortgage loans	2	264		1	1,445
Commercial loans	—	$	—
Consumer loans	—	$	—	—	$	—
Total restructured loans	2	$	264	1	$	1,445

Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period

The following table presents information regarding the estimates of the contractually required payments, the cash flows expected to be collected and the estimated fair value of the PCI loans acquired from Team Capital at May 30, 2014 (in thousands):



	May 30, 2014
Contractually required principal and interest	$	12,505
Contractual cash flows not expected to be collected (non-accretable discount)	(6,475		)
Expected cash flows to be collected at acquisition	6,030
Interest component of expected cash flows (accretable yield)	(810		)
Fair value of acquired loans	$	5,220

The following table summarizes the changes in the accretable yield for PCI loans during the three and six months ended June 30, 2014 (in thousands):



	Three and Six months ended June 30, 2014
Beginning balance	$	—
Acquisition	810
Accretion	(37		)
Reclassification from non-accretable difference	—
Ending balance	$	773

Schedule of Allowance for Loan Losses by Portfolio Segment

The activity in the allowance for loan losses by portfolio segment for the three and six months ended June 30, 2014 and 2013 was as follows (in thousands):



Three months ended June 30,	Mortgage loans			Commercial loans		Consumer loans		Total Portfolio Segments		Unallocated		Total
2014
Balance at beginning of period	$	31,470		25,161		4,379		61,010		2,410		63,420
Provision charged to operations	646			1,663		226		2,535		(1,035	)	1,500
Recoveries of loans previously charged-off	90			298		729		1,117		—		1,117
Loans charged-off	(1,166		)	(43	)	(953	)	(2,162	)	—		(2,162	)
Balance at end of period	$	31,040		27,079		4,381		62,500		1,375		63,875
2013
Balance at beginning of period	$	36,393		23,501		4,821		64,715		5,319		70,034
Provision charged to operations	(2,789		)	396		660		(1,733	)	2,733		1,000
Recoveries of loans previously charged-off	115			199		263		577		—		577
Loans charged-off	(3,049		)	(286	)	(1,271	)	(4,606	)	—		(4,606	)
Balance at end of period	$	30,670		23,810		4,473		58,953		8,052		67,005



Six months ended June 30,	Mortgage loans			Commercial loans		Consumer loans		Total Portfolio Segments		Unallocated		Total
2014
Balance at beginning of period	$	34,144		24,107		4,929		63,180		1,484		64,664
Provision charged to operations	(1,354		)	2,994		369		2,009		(109	)	1,900
Recoveries of loans previously charged-off	157			541		850		1,548		—		1,548
Loans charged-off	(1,907		)	(563	)	(1,767	)	(4,237	)	—		(4,237	)
Balance at end of period	$	31,040		27,079		4,381		62,500		1,375		63,875
2013
Balance at beginning of period	$	37,962		20,315		5,224		63,501		6,847		70,348
Provision charged to operations	(3,611		)	4,248		658		1,295		1,205		2,500
Recoveries of loans previously charged-off	343			313		506		1,162		—		1,162
Loans charged-off	(4,024		)	(1,066	)	(1,915	)	(7,005	)	—		(7,005	)
Balance at end of period	$	30,670		23,810		4,473		58,953		8,052		67,005

Summary of Impaired Loans Receivable by Class

by class and loan category, excluding PCI loans (in thousands):



	June 30, 2014						December 31, 2013
	Unpaid Principal Balance		Recorded Investment	Related Allowance	Average Recorded Investment	Interest Income Recognized	Unpaid Principal Balance	Recorded Investment	Related Allowance	Average Recorded Investment	Interest Income Recognized
Loans with no related allowance
Mortgage loans:
Residential	$	14,219	10,442	—	11,845	172	13,459	9,999	—	10,322	299
Commercial	5,079		4,847	—	4,851	8	4,917	4,667	—	4,834	3
Multi-family	—		—	—	—	—	—	—	—	—	—
Construction	—		—	—	—	—	—	—	—	—	—
Total	19,298		15,289	—	16,696	180	18,376	14,666	—	15,156	302
Commercial loans	4,994		3,971	—	4,224	—	8,163	6,674	—	8,252	24
Consumer loans	1,003		848	—	832	21	754	618	—	674	26
Total loans	$	25,295	20,108	—	21,752	201	27,293	21,958	—	24,082	352

Loans with an allowance recorded
Mortgage loans:
Residential	$	15,909	15,299	2,293	15,382	280	17,122	16,473	2,571	16,610	557
Commercial	37,799		36,523	2,540	36,722	476	37,320	36,251	2,309	36,727	976
Multi-family	—		—	—	—	—	—	—	—	—	—
Construction	—		—	—	—	—	9,810	8,449	2,949	8,659	—
Total	53,708		51,822	4,833	52,104	756	64,252	61,173	7,829	61,996	1,533
Commercial loans	22,057		20,486	3,573	21,173	228	22,779	21,536	2,221	23,204	650
Consumer loans	1,434		1,423	115	1,433	36	1,732	1,703	167	1,726	63
Total loans	$	77,199	73,731	8,521	74,710	1,020	88,763	84,412	10,217	86,926	2,246

Total impaired loans
Mortgage loans:
Residential	$	30,128	25,741	2,293	27,227	452	30,581	26,472	2,571	26,932	856
Commercial	42,878		41,370	2,540	41,573	484	42,237	40,918	2,309	41,561	979
Multi-family	—		—	—	—	—	—	—	—	—	—
Construction	—		—	—	—	—	9,810	8,449	2,949	8,659	—
Total	73,006		67,111	4,833	68,800	936	82,628	75,839	7,829	77,152	1,835
Commercial loans	27,051		24,457	3,573	25,397	228	30,942	28,210	2,221	31,456	674
Consumer loans	2,437		2,271	115	2,265	57	2,486	2,321	167	2,400	89
Total loans	$	102,494	93,839	8,521	96,462	1,221	116,056	106,370	10,217	111,008	2,598

Summary of Loans Receivable by Credit Quality Risk Rating Indicator

Loans receivable by credit quality risk rating indicator, excluding PCI loans, are as follows (in thousands):



	At June 30, 2014
	Residential		Commercial mortgage	Multi- family	Construction	Total mortgages	Commercial	Consumer	Total loans
Special mention	$	4,572	10,643	328	2,600	18,143	66,372	1,633	86,148
Substandard	21,323		53,797	1,243	—	76,363	43,618	3,437	123,418
Doubtful	—		—	—	—	—	1,144	—	1,144
Loss	—		—	—	—	—	—	—	—
Total classified and criticized	25,895		64,440	1,571	2,600	94,506	111,134	5,070	210,710
Pass/Watch	1,197,250		1,605,174	966,671	224,833	3,993,928	1,090,607	612,442	5,696,977
Total	$	1,223,145	1,669,614	968,242	227,433	4,088,434	1,201,741	617,512	5,907,687

	At December 31, 2013
	Residential		Commercial mortgage	Multi- family	Construction	Total mortgages	Commercial	Consumer	Total loans
Special mention	$	5,062	15,301	—	—	20,363	28,551	2,037	50,951
Substandard	23,011		54,592	403	8,449	86,455	46,687	4,220	137,362
Doubtful	—		—	—	—	—	649	—	649
Loss	—		—	—	—	—	—	—	—
Total classified and criticized	28,073		69,893	403	8,449	106,818	75,887	6,257	188,962
Pass/Watch	1,145,970		1,330,731	928,503	174,840	3,580,044	856,312	571,345	5,007,701
Total	$	1,174,043	1,400,624	928,906	183,289	3,686,862	932,199	577,602	5,196,663