Loans Receivable and Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2016

Receivables [Abstract]

Schedule of Loans Receivable

The following table presents loans receivable as of June 30, 2016 and December 31, 2015:

	June 30, 2016			December 31, 2015
(amounts in thousands)
Commercial:
Multi-family	$	3,308,556		$	2,909,439
Commercial and industrial (including owner occupied commercial real estate)	1,192,674			1,111,400
Commercial real estate non-owner occupied	1,139,711			956,255
Construction	99,615			87,240
Total commercial loans	5,740,556			5,064,334
Consumer:
Residential real estate	262,567			271,613
Manufactured housing	107,874			113,490
Other	3,277			3,708
Total consumer loans	373,718			388,811
Total loans receivable	6,114,274			5,453,145
Deferred costs and unamortized premiums, net	302			334
Allowance for loan losses	(38,097		)	(35,647		)
Loans receivable, net of allowance for loan losses	$	6,076,479		$	5,417,832

Loans Receivable by Loan Type and Performance Status

The following tables summarize loans receivable by loan type and performance status as of June 30, 2016 and December 31, 2015:

	June 30, 2016
	30-89 Days Past Due (1)		90 Days Or More Past Due(1)		Total Past Due (1)		Non- Accrual		Current (2)		Purchased- Credit- Impaired Loans (3)		Total Loans (4)
(amounts in thousands)
Multi-family	$	—	$	—	$	—	$	—	$	3,304,995	$	3,561	$	3,308,556
Commercial and industrial	—		—		—		5,294		837,642		932		843,868
Commercial real estate - owner occupied	—		—		—		2,677		333,609		12,520		348,806
Commercial real estate - non-owner occupied	52		—		52		2,299		1,126,583		10,777		1,139,711
Construction	—		—		—		—		99,381		234		99,615
Residential real estate	570		—		570		2,494		251,672		7,831		262,567
Manufactured housing (5)	3,461		2,297		5,758		1,818		97,062		3,236		107,874
Other consumer	—		—		—		45		3,006		226		3,277
Total	$	4,083	$	2,297	$	6,380	$	14,627	$	6,053,950	$	39,317	$	6,114,274
	December 31, 2015
	30-89 Days Past Due (1)		90 Days Or More Past Due(1)		Total Past Due (1)		Non- Accrual		Current (2)		Purchased- Credit- Impaired Loans (3)		Total Loans (4)
(amounts in thousands)
Multi-family	$	—	$	—	$	—	$	—	$	2,905,789	$	3,650	$	2,909,439
Commercial and industrial	39		—		39		1,973		799,595		1,552		803,159
Commercial real estate - owner occupied	268		—		268		2,700		292,312		12,961		308,241
Commercial real estate - non-owner occupied	1,997		—		1,997		1,307		940,895		12,056		956,255
Construction	—		—		—		—		87,006		234		87,240
Residential real estate	2,986		—		2,986		2,202		257,984		8,441		271,613
Manufactured housing (5)	3,752		2,805		6,557		2,449		101,132		3,352		113,490
Other consumer	107		—		107		140		3,227		234		3,708
Total	$	9,149	$	2,805	$	11,954	$	10,771	$	5,387,940	$	42,480	$	5,453,145

(1) Includes past due loans that are accruing interest because collection is considered probable.

(2) Loans where next payment due is less than 30 days from the report date.

(3) Purchased-credit-impaired loans aggregated into a pool are accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows, and the past due status of the pools, or that of the individual loans within the pools, is not meaningful. Because of the credit impaired nature of the loans, the loans are recorded at a discount reflecting estimated future cash flows and the Bank recognizes interest income on each pool of loans reflecting the estimated yield and passage of time. Such loans are considered to be performing. Purchased-credit-impaired loans that are not in pools accrete interest when the timing and amount of their expected cash flows are reasonably estimable, and are reported as performing loans.

(4) Amounts exclude deferred costs and fees, unamortized premiums and discounts, and the allowance for loan losses.

(5) Manufactured housing loans purchased in 2010 are subject to cash reserves held at the Bank that are used to fund past-due payments when the loan becomes 90 days or more delinquent. Subsequent purchases are subject to varying provisions in the event of borrowers’ delinquencies.

Schedule of Allowance for Loan Losses

The changes in the allowance for loan losses for the three and six months ended June 30, 2016 and 2015 and the loans and allowance for loan losses by loan class based on impairment evaluation method as of June 30, 2016 and December 31, 2015 are as follows. The amounts presented for the provision for loan losses below do not include the effect of changes to estimated benefits resulting from the FDIC loss share arrangements for the covered loans.

Three Months Ended June 30, 2016	Multi-family		Commercial and Industrial			Commercial Real Estate Owner Occupied		Commercial Real Estate Non-Owner Occupied			Construction			Residential Real Estate			Manufactured Housing			Other Consumer			Total
(amounts in thousands)
Ending Balance, March 31, 2016	$	12,135	$	9,959		$	1,410	$	8,548		$	1,264		$	3,676		$	468		$	145		$	37,605
Charge-offs	—		(537		)	—		—			—			(413		)	—			(190		)	(1,140		)
Recoveries	—		55			—		—			24			1			—			—			80
Provision for loan losses	233		893			172		(65		)	(79		)	271			(28		)	155			1,552
Ending Balance, June 30, 2016	$	12,368	$	10,370		$	1,582	$	8,483		$	1,209		$	3,535		$	440		$	110		$	38,097
Six Months Ended June 30, 2016
Ending Balance, December 31, 2015	$	12,016	$	8,864		$	1,348	$	8,420		$	1,074		$	3,298		$	494		$	133		$	35,647
Charge-offs	—		(537		)	—		—			—			(413		)	—			(232		)	(1,182		)
Recoveries	—		111			—		8			457			1			—			—			577
Provision for loan losses	352		1,932			234		55			(322		)	649			(54		)	209			3,055
Ending Balance, June 30, 2016	$	12,368	$	10,370		$	1,582	$	8,483		$	1,209		$	3,535		$	440		$	110		$	38,097
As of June 30, 2016
Loans:
Individually evaluated for impairment	$	386	$	28,564		$	9,840	$	5,962		$	—		$	4,270		$	8,850		$	44		$	57,916
Collectively evaluated for impairment	3,304,609		814,372			326,446		1,122,972			99,381			250,466			95,788			3,007			6,017,041
Loans acquired with credit deterioration	3,561		932			12,520		10,777			234			7,831			3,236			226			39,317
	$	3,308,556	$	843,868		$	348,806	$	1,139,711		$	99,615		$	262,567		$	107,874		$	3,277		$	6,114,274
Allowance for loan losses:
Individually evaluated for impairment	$	202	$	3,183		$	—	$	177		$	—		$	104		$	—		$	—		$	3,666
Collectively evaluated for impairment	12,166		6,968			1,582		4,535			1,209			2,491			96			53			29,100
Loans acquired with credit deterioration	—		219			—		3,771			—			940			344			57			5,331
	$	12,368	$	10,370		$	1,582	$	8,483		$	1,209		$	3,535		$	440		$	110		$	38,097

Three Months Ended June 30, 2015	Multi-family		Commercial and Industrial			Commercial Real Estate Owner Occupied			Commercial Real Estate Non-Owner Occupied			Construction			Residential Real Estate			Manufactured Housing			Other Consumer			Total
(amounts in thousands)
Ending Balance, March 31, 2015	$	8,196	$	6,747		$	4,583		$	9,738		$	852		$	2,995		$	346		$	109		$	33,566
Charge-offs	—		(1,213		)	(270		)	—			(295		)	(26		)	—			—			(1,804		)
Recoveries	—		58			1			—			172			572			—			2			805
Provision for loan losses	538		8,470			(663		)	(3,428		)	115			(86		)	(30		)	8			4,924
Ending Balance, June 30, 2015	$	8,734	$	14,062		$	3,651		$	6,310		$	844		$	3,455		$	316		$	119		$	37,491
Six Months Ended June 30, 2015
Ending Balance, December 31, 2014	$	8,493	$	4,784		$	4,336		$	9,198		$	1,047		$	2,698		$	262		$	114		$	30,932
Charge-offs	—		(1,234		)	(343		)	(245		)	(1,064		)	(26		)	—			(36		)	(2,948		)
Recoveries	—		103			1			—			187			572			—			85			948
Provision for loan losses	241		10,409			(343		)	(2,643		)	674			211			54			(44		)	8,559
Ending Balance, June 30, 2015	$	8,734	$	14,062		$	3,651		$	6,310		$	844		$	3,455		$	316		$	119		$	37,491
As of December 31, 2015
Loans:
Individually evaluated for impairment	$	661	$	17,621		$	8,329		$	4,831		$	—		$	4,726		$	8,300		$	140		$	44,608
Collectively evaluated for impairment	2,905,128		783,986			286,951			939,368			87,006			258,446			101,838			3,334			5,366,057
Loans acquired with credit deterioration	3,650		1,552			12,961			12,056			234			8,441			3,352			234			42,480
	$	2,909,439	$	803,159		$	308,241		$	956,255		$	87,240		$	271,613		$	113,490		$	3,708		$	5,453,145
Allowance for loan losses:
Individually evaluated for impairment	$	—	$	1,990		$	1		$	148		$	—		$	84		$	—		$	50		$	2,273
Collectively evaluated for impairment	12,016		6,650			1,347			3,858			1,074			2,141			98			28			27,212
Loans acquired with credit deterioration	—		224			—			4,414			—			1,073			396			55			6,162
	$	12,016	$	8,864		$	1,348		$	8,420		$	1,074		$	3,298		$	494		$	133		$	35,647

Summary of Recorded Investment Net Charge-Offs, Unpaid Principal Balance and Related Allowance for Impaired Loans

The following tables present the recorded investment (net of charge-offs), unpaid principal balance, and related allowance by loan type for loans that are individually evaluated for impairment as of June 30, 2016 and December 31, 2015 and the average recorded investment and interest income recognized for the three and six months ended June 30, 2016 and 2015. Purchased-credit-impaired loans are considered to be performing and are not included in the tables below.

	June 30, 2016						Three Months Ended June 30, 2016				Six Months Ended June 30, 2016
	Recorded Investment Net of Charge offs		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
(amounts in thousands)
With no related allowance recorded:
Multi-family	$	—	$	—	$	—	$	—	$	—	$	220	$	—
Commercial and industrial	20,833		22,911		—		19,892		286		17,280		473
Commercial real estate owner occupied	9,840		9,840		—		9,882		108		9,360		202
Commercial real estate non-owner occupied	5,427		5,426		—		4,755		—		4,595		15
Other consumer	44		44		—		45		—		46		—
Residential real estate	3,871		3,871		—		4,013		20		4,119		44
Manufactured housing	8,850		8,850		—		8,874		172		8,683		281
With an allowance recorded:
Multi-family	386		386		202		390		5		260		10
Commercial and industrial	7,731		7,731		3,183		8,034		41		7,211		112
Commercial real estate owner occupied	—		—		—		6		—		8		—
Commercial real estate non-owner occupied	535		535		177		538		2		544		4
Other consumer	—		—		—		27		—		48		—
Residential real estate	399		399		104		544		—		494		—
Total	$	57,916	$	59,993	$	3,666	$	57,000	$	634	$	52,868	$	1,141

	December 31, 2015						Three Months Ended June 30, 2015				Six Months Ended June 30, 2015
	Recorded Investment Net of Charge offs		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
(amounts in thousands)
With no related allowance recorded:
Multi-family	$	661	$	661	$	—	$	—	$	—	$	—	$	—
Commercial and industrial	12,056		13,028		—		7,122		439		9,356		604
Commercial real estate owner occupied	8,317		8,317		—		5,175		122		6,177		185
Commercial real estate non-owner occupied	4,276		4,276		—		6,805		246		8,135		374
Construction	—		—		—		1,497		—		1,773		—
Other consumer	48		48		—		35		—		30		—
Residential real estate	4,331		4,331		—		3,924		21		3,841		42
Manufactured housing	8,300		8,300		—		4,747		186		4,027		209
With an allowance recorded:
Commercial and industrial	5,565		5,914		1,990		10,686		96		7,735		101
Commercial real estate - owner occupied	12		12		1		18		—		20		—
Commercial real estate non-owner occupied	555		555		148		1,072		7		1,177		7
Other consumer	92		92		50		73		—		87		—
Residential real estate	395		395		84		454		—		424		—
Total	$	44,608	$	45,929	$	2,273	$	41,608	$	1,117	$	42,782	$	1,522

Analysis of Loans Modified in Troubled Debt Restructuring by Type of Concession

The following is an analysis of loans modified in a troubled debt restructuring by type of concession for the three and six months ended June 30, 2016 and 2015. There were no modifications that involved forgiveness of debt.

	Three Months Ended June 30, 2016			Three Months Ended June 30, 2015
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
(dollars in thousands)
Interest-rate reductions	16	$	535	109	$	5,012
Total	16	$	535	109	$	5,012

	Six Months Ended June 30, 2016			Six Months Ended June 30, 2015
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
(dollars in thousands)
Extensions of maturity	3	$	1,995	—	$	—
Interest-rate reductions	39	1,399		112	5,417
Total	42	$	3,394	112	$	5,417

Summary of Loans Modified in Troubled Debt Restructurings and Related Recorded Investment

The following table provides, by loan type, the number of loans modified in troubled debt restructurings, and the related recorded investment, during the three and six months ended June 30, 2016 and 2015.

	Three Months Ended June 30, 2016			Three Months Ended June 30, 2015
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
(dollars in thousands)
Commercial and industrial	—	$	—	2	$	608
Commercial real estate non-owner occupied	—	—		—	—
Manufactured housing	14	319		106	4,193
Residential real estate	2	216		1	211
Total loans	16	$	535	109	$	5,012

	Six Months Ended June 30, 2016			Six Months Ended June 30, 2015
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
(dollars in thousands)
Commercial and industrial	1	$	76	2	$	608
Commercial real estate non-owner occupied	1	1,844		—	—
Manufactured housing	37	1,183		108	4,400
Residential real estate	3	291		2	409
Total loans	42	$	3,394	112	$	5,417

Changes in Accretable Yield Related to Purchased-credit-impaired Loans

The changes in accretable yield related to purchased-credit-impaired loans for the three and six months ended June 30, 2016 and 2015 were as follows:

	Three Months Ended June 30,
	2016			2015
(amounts in thousands)
Accretable yield balance as of March 31,	$	12,622		$	15,424
Accretion to interest income	(499		)	(578		)
Reclassification from nonaccretable difference and disposals, net	(958		)	(544		)
Accretable yield balance as of June 30,	$	11,165		$	14,302
	Six Months Ended June 30,
	2016			2015
(amounts in thousands)
Accretable yield balance as of December 31,	$	12,947		$	17,606
Accretion to interest income	(969		)	(1,239		)
Reclassification from nonaccretable difference and disposals, net	(813		)	(2,065		)
Accretable yield balance as of June 30,	$	11,165		$	14,302

Schedule of Changes in Allowance for Loan Losses

	Allowance for Loan Losses
	Six months ended June 30,
(amounts in thousands)	2016			2015
Ending balance as of December 31,	$	35,647		$	30,932
Provision for loan losses (1)	3,055			8,559
Charge-offs	(1,182		)	(2,948		)
Recoveries	577			948
Ending balance as of June 30,	$	38,097		$	37,491

The following table presents changes in the allowance for loan losses and the FDIC loss sharing receivable, including the effects of the estimated clawback liability and the termination agreement, for the three and six months ended June 30, 2016 and 2015.

	Allowance for Loan Losses
	Three Months Ended June 30,
(amounts in thousands)	2016			2015
Ending balance as of March 31,	$	37,605		$	33,566
Provision for loan losses (1)	1,552			4,924
Charge-offs	(1,140		)	(1,804		)
Recoveries	80			805
Ending balance as of June 30,	$	38,097		$	37,491

Schedule of FDIC Loss Sharing Receivable

	FDIC Loss Sharing Receivable/ Clawback Liability
	Six months ended June 30,
(amounts in thousands)	2016			2015
Ending balance as of December 31,	$	(2,083	)	$	2,320
Increased (decreased) estimated cash flows (2)	289			(3,740		)
Other activity, net (a)	(255		)	468
Cash payments to (receipts from) the FDIC	668			(503		)
Ending balance as of June 30,	$	(1,381	)	$	(1,455	)
(1) Provision for loan losses	$	3,055		$	8,559
(2) Effect attributable to FDIC loss share arrangements	(289		)	3,740
Net amount reported as provision for loan losses	$	2,766		$	12,299

(a) Includes external costs, such as legal fees, real estate taxes, and appraisal expenses, which qualified for reimbursement under the loss sharing arrangements.

	FDIC Loss Sharing Receivable/ Clawback Liability
	Three Months Ended June 30,
(amounts in thousands)	2016			2015
Ending balance as of March 31,	$	(2,544	)	$	3,427
Increased (decreased) estimated cash flows (2)	766			(4,411		)
Other activity, net (a)	49			334
Cash payments to (receipts from) the FDIC	348			(805		)
Ending balance as of June 30,	$	(1,381	)	$	(1,455	)
(1) Provision for loan losses	$	1,552		$	4,924
(2) Effect attributable to FDIC loss share arrangements	(766		)	4,411
Net amount reported as provision for loan losses	$	786		$	9,335

(a) Includes external costs, such as legal fees, real estate taxes, and appraisal expenses, which qualify for reimbursement under loss sharing arrangements

Credit Ratings of Covered and Non-Covered Loan Portfolio

The following tables present the credit ratings of loans receivable as of June 30, 2016 and December 31, 2015.

	June 30, 2016
	Multi-family		Commercial and Industrial		Commercial Real Estate Owner Occupied		Commercial Real Estate Non-Owner Occupied		Construction		Residential Real Estate		Manufactured Housing		Other Consumer		Total
(amounts in thousands)
Pass/Satisfactory	$	3,306,759	$	815,210	$	336,283	$	1,133,554	$	99,615	$	259,894	$	—	$	—	$	5,951,315
Special Mention	386		21,588		7,944		3,700		—		—		—		—		33,618
Substandard	1,411		7,070		4,579		2,457		—		2,673		—		—		18,190
Performing (1)	—		—		—		—		—		—		100,298		3,232		103,530
Non-performing (2)	—		—		—		—		—		—		7,576		45		7,621
Total	$	3,308,556	$	843,868	$	348,806	$	1,139,711	$	99,615	$	262,567	$	107,874	$	3,277	$	6,114,274

	December 31, 2015
	Multi-family		Commercial and Industrial		Commercial Real Estate Owner Occupied		Commercial Real Estate Non-Owner Occupied		Construction		Residential Real Estate		Manufactured Housing		Other Consumer		Total
(amounts in thousands)
Pass/Satisfactory	$	2,907,362	$	784,892	$	295,762	$	950,886	$	87,240	$	268,210	$	—	$	—	$	5,294,352
Special Mention	661		14,052		7,840		1,671		—		282		—		—		24,506
Substandard	1,416		4,215		4,639		3,698		—		3,121		—		—		17,089
Performing (1)	—		—		—		—		—		—		104,484		3,461		107,945
Non-performing (2)	—		—		—		—		—		—		9,006		247		9,253
Total	$	2,909,439	$	803,159	$	308,241	$	956,255	$	87,240	$	271,613	$	113,490	$	3,708	$	5,453,145

(1) Includes consumer and other installment loans not subject to risk ratings.

(2) Includes loans that are past due and still accruing interest and loans on nonaccrual status.