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. |
|