Note 3 - Loans

12 Months Ended

Dec. 31, 2011

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

3. Loans

The composition of loans is as follows at December 31:

	2011		2010
	(In thousands)
Multi-family residential	$	1,391,221	$	1,252,176
Commercial real estate		580,783		662,794
One-to-four family ― mixed-use property		693,932		728,810
One-to-four family ― residential		220,431		241,376
Co-operative apartments		5,505		6,215
Construction		47,140		75,519
Small Business Administration		14,039		17,511
Taxi medallion		54,328		88,264
Commercial business and other		206,614		187,161
Gross loans		3,213,993		3,259,826
Unearned loan fees and deferred costs, net		14,888		16,503
Total loans	$	3,228,881	$	3,276,329

The total amount of loans on non-accrual status was $111.1 million and $108.7 million at December 31, 2011 and 2010, respectively. The total amount of loans classified as impaired, which includes all loans on non-accrual status, was $190.3 million and $175.0 million at December 31, 2011 and 2010, respectively. We adjust the carrying value of collateral dependent impaired loans to their fair value with a charge to the allowance for loan losses. The average balance of impaired loans was $191.2 million and $142.6 million for 2011 and 2010, respectively.

The Company may restructure a loan to enable a borrower to continue making payments when it is deemed to be in our best long-term interest. This restructure may include reducing the interest rate or amount of the monthly payment for a specified period of time, after which the interest rate and repayment terms revert to the original terms of the loan. The Company classifies these loans as a TDR.

During the year ended December 31, 2011, six multi-family loans totaling $1.8 million were modified and classified as a TDR as each of these borrowers was given an interest rate that was considered below market for that borrower and each had the loan’s amortization term extended; two constructions loans totaling $24.2 million were modified and classified as a TDR as each of these borrowers was given an interest rate that was considered below market for that borrower; one commercial business loan for $2.0 million was modified and classified as a TDR as the borrower was given an interest rate that was considered below market for that borrower; and three one-to-four family – mixed-use property loans totaling $0.9 million was modified and classified as a TDR as each of these borrowers was given an interest rate that was considered below market for that borrower with two of the loans also having the loan’s amortization term extended. For each of the loans that were modified and classified as a TDR the borrower was experiencing financial difficulties. The recorded investment of each of the loans modified and classified to a TDR was unchanged as there was no principal forgiven in any of these modifications.

During the year ended December 31, 2010, three multi-family loans totaling $7.5 million were modified and classified as a TDR as each of these borrowers was given an interest rate that was considered below market for that borrower, with one also having the loan’s amortization term extended, and one also having deferral of the payment of a portion of the interest; three commercial mortgage loans totaling $5.6 million were modified and classified as a TDR as each of these borrowers was given an interest rate that was considered below market for that borrower, with one loan also changed to payments of interest only; and two one-to-four family – mixed-use property loans totaling $0.9 million were modified and classified as a TDR as each of these borrowers were given an interest rate that was considered below market for that borrower and one borrower also having the loan’s amortization term extended. For each of the loans that were modified and classified as a TDR the borrower was experiencing financial difficulties. The recorded investment of each of the loans modified and classified to a TDR was unchanged as there was no principal forgiven in any of these modifications.

The following table shows our recorded investment for loans classified as TDR that are performing according to their restructured terms at the periods indicated:

	December 31, 2011				December 31, 2010
(Dollars in thousands)	Number of contracts		Recorded investment		Number of contracts		Recorded investment
Multi-family residential		11	$	9,412		5	$	7,946
Commercial real estate		2		2,499		3		5,815
One-to-four family - mixed-use property		3		795		1		206
Construction		1		5,888		-		-
Commercial business and other		1		2,000		-		-
Total performing troubled debt restructured		18	$	20,594		9	$	13,967

During the year ended December 31, 2011, one construction loan for $11.5 million, which was modified and classified as a TDR within the previous 12 months, was reclassified to non-accrual status as it is no longer performing in accordance with its modified terms. During the year ended December 31, 2010, no loans, which were modified and classified as a TDR within the previous 12 months, were reclassified to non-accrual status as they were no longer performing in accordance with their modified terms.

The following table shows our recorded investment for loans classified as TDR that are not performing according to their restructured terms at the periods indicated:

	December 31, 2011				December 31, 2010
(Dollars in thousands)	Number of contracts		Recorded investment		Number of contracts		Recorded investment
Multi-family residential		-	$	-		-	$	-
Commercial real estate		2		4,340		1		1,496
One-to-four family - mixed-use property		3		1,193		3		1,287
One-to-four family - residential		-		-		1		491
Construction		1		11,673		-		-
Total troubled debt restructurings that subsequently defaulted		6	$	17,206		5	$	3,274

The following table shows our non-performing loans at the periods indicated:

	At December 31,
(Dollars in thousands)	2011		2010
Loans ninety days or more past due and still accruing:
Multi-family residential	$	6,287	$	103
Commercial real estate		92		3,328
Commercial Business and other		-		6
Total		6,379		3,437
Non-accrual mortgage loans:
Multi-family residential		19,946		35,633
Commercial real estate		19,895		22,806
One-to-four family mixed-use property		28,429		30,478
One-to-four family residential		12,766		10,695
Co-operative apartments		152		-
Construction		14,721		4,465
Total		95,909		104,077
Non-accrual non-mortgage loans:
Small Business Administration		493		1,159
Commercial Business and other		14,660		3,419
Total		15,153		4,578
Total non-accrual loans		111,062		108,655
Total non-accrual loans and ninety days or more past due and still accruing	$	117,441	$	112,092

The following is a summary of interest foregone on non-accrual loans and loans classified as TDR for the years ended December 31:

	2011		2010		2009
	(In thousands)
Interest income that would have been recognized had the loans performed in accordance with their original terms	$	9,654	$	9,460	$	5,839
Less: Interest income included in the results of operations		2,126		2,018		960
Total foregone interest	$	7,528	$	7,442	$	4,879

The following table shows an age analysis of our recorded investment in loans at December 31, 2011:

(in thousands)	30 - 59 Days Past Due		60 - 89 Days Past Due		Greater than 90 Days		Total Past Due		Current		Total Loans
	(in thousands)
Multi-family residential	$	20,083	$	6,341	$	26,233	$	52,657	$	1,338,564	$	1,391,221
Commercial real estate		10,804		1,797		19,987		32,588		548,195		580,783
One-to-four family - mixed-use property		20,480		3,027		27,950		51,457		642,475		693,932
One-to-four family - residential		4,699		1,769		12,766		19,234		201,197		220,431
Co-operative apartments		-		-		152		152		5,353		5,505
Construction loans		5,065		-		14,721		19,786		27,354		47,140
Small Business Administration		16		41		452		509		13,530		14,039
Taxi medallion		71		-		-		71		54,257		54,328
Commercial business and other		5,476		966		10,241		16,683		189,931		206,614
Total	$	66,694	$	13,941	$	112,502	$	193,137	$	3,020,856	$	3,213,993

The following table shows an age analysis of our recorded investment in loans at December 31, 2010:

(in thousands)	30 - 59 Days Past Due		60 - 89 Days Past Due		Greater than 90 Days		Total Past Due		Current		Total Loans
	(in thousands)
Multi-family residential	$	30,799	$	7,014	$	35,736	$	73,549	$	1,178,627	$	1,252,176
Commercial real estate		17,167		2,181		26,134		45,482		617,312		662,794
One-to-four family - mixed-use property		19,596		6,376		30,478		56,450		672,360		728,810
One-to-four family - residential		4,826		1,046		10,695		16,567		224,809		241,376
Co-operative apartments		133		-		-		133		6,082		6,215
Construction loans		2,900		5,485		4,465		12,850		62,669		75,519
Small Business Administration		418		991		1,159		2,568		14,943		17,511
Taxi medallion		-		-		-		-		88,264		88,264
Commercial business and other		4,534		3		3,425		7,962		179,199		187,161
Total	$	80,373	$	23,096	$	112,092	$	215,561	$	3,044,265	$	3,259,826

The following table shows the activity in the allowance for loan losses for the year ended December 31, 2011:

(in thousands)	Multi-family residential		Commercial real estate		One-to-four family - mixed-use property		One-to-four family - residential		Co-operative apartments		Construction loans		Small Business Administration		Taxi medallion			Commercial business and other		Total
Allowance for credit losses:
Beginning balance	$	9,007	$	4,905	$	5,997	$	938	$	17	$	589	$	1,303	$	639		$	4,304	$	27,699
Charge-off's		6,807		5,172		2,644		2,226		-		1,088		871		-			642		19,450
Recoveries		153		184		123		63		-		-		60		-			12		595
Provision		8,914		5,293		1,838		2,874		63		1,167		495		(598	)		1,454		21,500
Ending balance	$	11,267	$	5,210	$	5,314	$	1,649	$	80	$	668	$	987	$	41		$	5,128	$	30,344
Ending balance: individually evaluated for impairment	$	346	$	189	$	718	$	-	$	58	$	268	$	88	$	-		$	2,539	$	4,206
Ending balance: collectively evaluated for impairment	$	10,921	$	5,021	$	4,596	$	1,649	$	22	$	400	$	899	$	41		$	2,589	$	26,138
Financing Recevables:
Ending balance	$	1,391,221	$	580,783	$	693,932	$	220,431	$	5,505	$	47,140	$	14,039	$	54,328		$	206,614	$	3,213,993
Ending balance: individually evaluated for impairment	$	58,528	$	53,511	$	51,527	$	17,470	$	356	$	31,126	$	470	$	-		$	29,417	$	242,426
Ending balance: collectively evaluated for impairment	$	1,332,693	$	527,272	$	642,405	$	202,961	$	5,149	$	16,014	$	13,569	$	54,328		$	177,197	$	2,971,567

The following table shows the activity in the allowance for loan losses for the year ended December 31, 2010:

(in thousands)	Multi-family residential		Commercial real estate		One-to-four family - mixed-use property		One-to-four family - residential		Co-operative apartments		Construction loans		Small Business Administration		Taxi medallion		Commercial business and other		Total
Allowance for credit losses:
Beginning balance	$	6,581	$	4,050	$	4,339	$	844	$	17	$	1,281	$	965	$	583	$	1,664	$	20,324
Charge-off's		5,790		2,686		2,580		236		-		1,879		925		-		499		14,595
Recoveries		17		51		115		-		-		-		173		-		614		970
Provision		8,199		3,490		4,123		330		-		1,187		1,090		56		2,525		21,000
Ending balance	$	9,007	$	4,905	$	5,997	$	938	$	17	$	589	$	1,303	$	639	$	4,304	$	27,699
Ending balance: individually evaluated for impairment	$	5,290	$	3,100	$	3,960	$	290	$	-	$	-	$	-	$	-	$	330	$	12,970
Ending balance: collectively evaluated for impairment	$	3,717	$	1,805	$	2,037	$	648	$	17	$	589	$	1,303	$	639	$	3,974	$	14,729
Financing Recevables:
Ending balance	$	1,252,176	$	662,794	$	728,810	$	241,376	$	6,215	$	75,519	$	17,511	$	88,264	$	187,161	$	3,259,826
Ending balance: individually evaluated for impairment	$	51,626	$	32,120	$	33,539	$	10,874	$	-	$	30,589	$	1,432	$	-	$	14,866	$	175,046
Ending balance: collectively evaluated for impairment	$	1,200,550	$	630,674	$	695,271	$	230,502	$	6,215	$	44,930	$	16,079	$	88,264	$	172,295	$	3,084,780

The following table shows our recorded investment, unpaid principal balance and allocated allowance for loan losses, average recorded investment and interest income recognized for loans that were considered impaired at or for the year ended December 31, 2011:

	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
	(Dollars in thousands)
With no related allowance recorded:
Mortgage loans:
Multi-family residential	$	33,046	$	36,705	$	-	$	35,792	$	910
Commercial real estate		38,748		42,345		-		37,511		1,355
One-to-four family mixed-use property		33,831		37,233		-		32,687		447
One-to-four family residential		14,343		16,599		-		11,578		196
Co-operative apartments		153		153		-		110		-
Construction		10,995		11,380		-		11,166		672
Non-mortgage loans:
Small Business Administration		275		500		-		69		3
Taxi Medallion		-		-		-		-		-
Commercial Business and other		11,160		11,162		-		13,801		339
Total loans with no related allowance recorded		142,551		156,077		-		142,714		3,922
With an allowance recorded:
Mortgage loans:
Multi-family residential		13,046		13,110		346		12,270		635
Commercial real estate		3,018		3,018		189		3,301		140
One-to-four family mixed-use property		6,111		6,213		718		2,720		412
One-to-four family residential		-		-		-		143		-
Co-operative apartments		-		-		-		-		-
Construction		17,561		17,561		268		21,296		453
Non-mortgage loans:
Small Business Administration		195		195		88		777		10
Taxi Medallion		-		-		-		-		-
Commercial Business and other		7,620		8,353		2,539		7,905		209
Total loans with an allowance recorded		47,754		48,653		4,206		48,463		1,870
Total Impaired Loans:
Total mortgage loans	$	171,055	$	184,520	$	1,579	$	168,625	$	5,231
Total non-mortgage loans	$	19,250	$	20,210	$	2,627	$	22,552	$	561

The following table shows our recorded investment, unpaid principal balance and allocated allowance for loan losses, average recorded investment and interest income recognized for loans that were considered impaired at or for the year ended December 31, 2010:

	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
	(Dollars in thousands)
With no related allowance recorded:
Mortgage loans:
Multi-family residential	$	18,403	$	19,200	$	-	$	16,930	$	838
Commercial real estate		12,474		12,547		-		10,008		443
One-to-four family mixed-use property		7,107		7,455		-		6,976		104
One-to-four family residential		8,394		8,394		-		6,556		97
Co-operative apartments		-		-		-		20		-
Construction		30,589		32,340		-		22,258		1,116
Non-mortgage loans:
Small Business Administration		-		-		-		-		-
Taxi Medallion		-		-		-		-		-
Commercial Business and other		8,745		8,825		-		4,271		558
Total loans with no related allowance recorded		85,712		88,761		-		67,019		3,156
With an allowance recorded:
Mortgage loans:
Multi-family residential		33,223		37,649		5,290		27,507		396
Commercial real estate		19,646		22,443		3,100		14,799		401
One-to-four family mixed-use property		26,432		28,622		3,960		23,551		290
One-to-four family residential		2,480		2,681		290		2,041		-
Co-operative apartments		-		-		-		-		-
Construction		-		-		-		1,750		-
Non-mortgage loans:
Small Business Administration		1,432		1,432		768		1,233		82
Taxi Medallion		-		-		-		-		-
Commercial Business and other		6,121		6,842		2,449		4,739		193
Total loans with an allowance recorded		89,334		99,669		15,857		75,620		1,362
Total Impaired Loans:
Total mortgage loans	$	158,748	$	171,331	$	12,640	$	132,396	$	3,685
Total non-mortgage loans	$	16,298	$	17,099	$	3,217	$	10,243	$	833

In accordance with our policy and the current regulatory guidelines, we designate loans as “Special Mention,” which are considered “Criticized Loans,” and “Substandard,” “Doubtful,” or “Loss,” which are considered “Classified Loans”. If a loan does not fall within one of the previous mentioned categories then the loan would be considered “Pass.” We designate a loan as Substandard when a well-defined weakness is identified that jeopardizes the orderly liquidation of the debt. We designate a loan Doubtful when it displays the inherent weakness of a Substandard loan with the added provision that collection of the debt in full, on the basis of existing facts, is highly improbable. We designate a loan as Loss if it is deemed the debtor is incapable of repayment. Loans that are designated as Loss are charged to the Allowance for Loan Losses. Loans that are non-accrual are designated as Substandard, Doubtful or Loss. We designate a loan as Special Mention if the asset does not warrant classification within one of the other classifications, but does contain a potential weakness that deserves closer attention.

The following table sets forth the recorded investment in loans designated as Criticized or Classified at December 31, 2011:

(In thousands)	Special Mention		Substandard		Doubtful		Loss		Total
Multi-family residential	$	17,135	$	41,393	$	-	$	-	$	58,528
Commercial real estate		12,264		41,247		-		-		53,511
One-to-four family - mixed-use property		17,393		33,831		-		-		51,224
One-to-four family - residential		3,127		14,343		-		-		17,470
Co-operative apartments		203		153		-		-		356
Construction loans		2,570		28,555		-		-		31,125
Small Business Administration		666		256		214		-		1,136
Commercial business and other		13,585		17,613		1,169		-		32,367
Total loans	$	66,943	$	177,391	$	1,383	$	-	$	245,717

The following table sets forth the recorded investment in loans designated as Criticized or Classified at December 31, 2010:

(In thousands)	Special Mention		Substandard		Doubtful		Loss		Total
Multi-family residential	$	20,277	$	51,626	$	-	$	-	$	71,903
Commercial real estate		13,228		32,120		-		-		45,348
One-to-four family - mixed-use property		15,546		33,539		-		-		49,085
One-to-four family - residential		2,849		10,874		-		-		13,723
Co-operative apartments		-		-		-		-		-
Construction loans		5,945		30,589		-		-		36,534
Small Business Administration		558		1,432		-		-		1,990
Commercial business and other		14,302		13,628		1,238		-		29,168
Total loans	$	72,705	$	173,808	$	1,238	$	-	$	247,751

The following table shows the activity in the allowance for loan losses for the years ended December 31:

	2011			2010			2009
	(In thousands)
Balance, beginning of year	$	27,699		$	20,324		$	11,028
Provision for loan losses		21,500			21,000			19,500
Charge-offs		(19,450	)		(14,595	)		(10,371	)
Recoveries		595			970			167
Balance, end of year	$	30,344		$	27,699		$	20,324

The following are net loan charge-offs (recoveries) by loan type for the years ended December 31:

	2011		2010			2009
	(In thousands)
Multi-family residential	$	6,654	$	5,773		$	2,326
Commercial real estate		4,988		2,634			728
One-to-four family ― mixed-use property		2,521		2,465			1,009
One-to-four family ― residential		2,163		236			284
Construction		1,088		1,879			1,075
Small Business Administration		811		752			1,062
Commercial business and other		630		(114	)		3,720
Total net loan charge-offs	$	18,855	$	13,625		$	10,204