Note 3 - Loans

12 Months Ended

Dec. 31, 2012

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

3. Loans

The composition of loans is as follows at December 31:

	2012		2011
	(In thousands)
Multi-family residential	$	1,534,438	$	1,391,221
Commercial real estate		515,438		580,783
One-to-four family ― mixed-use property		637,353		693,932
One-to-four family ― residential		198,968		220,431
Co-operative apartments		6,303		5,505
Construction		14,381		47,140
Small Business Administration		9,496		14,039
Taxi medallion		9,922		54,328
Commercial business and other		295,076		206,614
Gross loans		3,221,375		3,213,993
Unearned loan fees and deferred costs, net		12,746		14,888
Total loans	$	3,234,121	$	3,228,881

The total amount of loans on non-accrual status was $84.1 million and $111.1 million at December 31, 2012 and 2011, respectively.  The total amount of loans classified as impaired, which includes all loans on non-accrual status, was $128.6 million and $190.3 million at December 31, 2012 and 2011, respectively. We generally 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 $148.9 million and $191.2 million for 2012 and 2011, 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.

The following table shows loans modified and classified as TDR during the years ended December 31, 2012 and 2011:

	For the year ended December 31, 2012					For the year ended December 31, 2011
(Dollars in thousands)	Number		Balance		Modification description	Number		Balance		Modification description
Multi-family residential		-	$	-			6	$	1,800	Received a below market interest rate and the loan amortization was extended
Commercial real estate		3		5,300	Received a below market interest rate and the loan amortization was extended		1		2,000	Received a below market interest rate
One-to-four family - mixed-use property		3		1,200	Received a below market interest rate		3		900	Received a below market interest rate and loan amortization term extended
One-to-four family - residential		1		400	Received a below market interest rate
Construction loans							2		24,200	Received a below market interest rate
Commercial business and other		2		1,900	Received a below market interest rate and the loan amortization was extended		-		-
Total		9	$	8,800			12	$	28,900

The recorded investment of each of the loans modified and classified to a TDR, presented in the table above, 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, 2012				December 31, 2011
(Dollars in thousands)	Number of contracts		Recorded investment		Number of contracts		Recorded investment
Multi-family residential		8	$	2,347		11	$	9,412
Commercial real estate		5		8,499		2		2,499
One-to-four family - mixed-use property		7		2,336		3		795
One-to-four family - residential		1		374
Construction		1		3,805		1		5,888
Commercial business and other		2		2,540		1		2,000
Total performing troubled debt restructured		24	$	19,901		18	$	20,594

During the year ended December 31, 2012, three multi-family TDR totaling $6.9 million and one commercial TDR for $0.4 million were transferred to non-accrual status as they were no longer performing in accordance with their modified terms.  During the year ended December 31, 2011, one construction loan for $11.5 million, one commercial loan for $3.3 million and two one-to-four family – mixed-used property loans totaling $0.7 million were transferred 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, 2012				December 31, 2011
(Dollars in thousands)	Number of contracts		Recorded investment		Number of contracts		Recorded investment
Multi-family residential		2	$	323		-	$	-
Commercial real estate		2		3,075		2		4,340
One-to-four family - mixed-use property		2		816		3		1,193
Construction		1		7,368		1		11,673
Total troubled debt restructurings that subsequently defaulted		7	$	11,582		6	$	17,206

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

	At December 31,
(Dollars in thousands)	2012		2011
Loans ninety days or more past due and still accruing:
Multi-family residential	$	-	$	6,287
Commercial real estate		-		92
Commercial Business and other		644		-
Total		644		6,379
Non-accrual mortgage loans:
Multi-family residential		13,095		19,946
Commercial real estate		15,640		19,895
One-to-four family mixed-use property		16,553		28,429
One-to-four family residential		13,726		12,766
Co-operative apartments		234		152
Construction		7,695		14,721
Total		66,943		95,909
Non-accrual non-mortgage loans:
Small Business Administration		283		493
Commercial Business and other		16,860		14,660
Total		17,143		15,153
Total non-accrual loans		84,086		111,062
Total non-accrual loans and ninety days or more past due and still accruing	$	84,730	$	117,441

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

	2012		2011		2010
	(In thousands)
Interest income that would have been recognized had the loans performed in accordance with their original terms	$	9,026	$	9,654	$	9,460
Less:  Interest income included in the results of operations		1,692		2,126		2,018
Total foregone interest	$	7,334	$	7,528	$	7,442

The following table shows an age analysis of our recorded investment in loans at December 31, 2012:

(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	$	24,059	$	4,828	$	13,095	$	41,982	$	1,492,456	$	1,534,438
Commercial real estate		9,764		3,622		15,639		29,025		486,413		515,438
One-to-four family - mixed-use property		21,012		3,368		16,554		40,934		596,419		637,353
One-to-four family - residential		3,407		2,010		13,602		19,019		179,949		198,968
Co-operative apartments		-		-		234		234		6,069		6,303
Construction loans		2,462		-		7,695		10,157		4,224		14,381
Small Business Administration		404		-		283		687		8,809		9,496
Taxi medallion		-		-		-		-		9,922		9,922
Commercial business and other		2		5		15,601		15,608		279,468		295,076
Total	$	61,110	$	13,833	$	82,703	$	157,646	$	3,063,729	$	3,221,375

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 the activity in the allowance for loan losses for the year ended December 31, 2012:

(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	$	11,267	$	5,210	$	5,314	$	1,649	$	80	$	668	$	987		$	41		$	5,128	$	30,344
Charge-off's		6,016		2,746		4,286		1,583		62		4,591		324			-			1,661		21,269
Recoveries		144		307		358		29		-		-		87			-			104		1,029
Provision		7,606		2,934		4,574		1,904		28		3,989		(245	)		(34	)		244		21,000
Ending balance	$	13,001	$	5,705	$	5,960	$	1,999	$	46	$	66	$	505		$	7		$	3,815	$	31,104
Ending balance: individually evaluated for impairment	$	183	$	359	$	571	$	94	$	-	$	38	$	-		$	-		$	249	$	1,494
Ending balance: collectively evaluated for impairment	$	12,818	$	5,346	$	5,389	$	1,905	$	46	$	28	$	505		$	7		$	3,566	$	29,610
Financing Receivables:
Ending balance	$	1,534,438	$	515,438	$	637,353	$	198,968	$	6,303	$	14,381	$	9,496		$	9,922		$	295,076	$	3,221,375
Ending balance: individually evaluated for impairment	$	21,675	$	23,525	$	26,368	$	15,702	$	237	$	14,232	$	850		$	-		$	26,021	$	128,610
Ending balance: collectively evaluated for impairment	$	1,512,763	$	491,913	$	610,985	$	183,266	$	6,066	$	149	$	8,646		$	9,922		$	269,055	$	3,092,765

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 Receivables:
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	$	491	$	-		$	29,417	$	242,426
Ending balance: collectively evaluated for impairment	$	1,332,693	$	527,272	$	642,405	$	202,961	$	5,149	$	16,014	$	13,548	$	54,328		$	177,197	$	2,971,567

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, 2012:

	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	$	19,753	$	22,889	$	-	$	27,720	$	429
Commercial real estate		34,672		38,594		-		43,976		536
One-to-four family mixed-use property		23,054		25,825		-		27,018		485
One-to-four family residential		15,328		18,995		-		15,047		186
Co-operative apartments		237		299		-		174		2
Construction		10,598		15,182		-		14,689		173
Non-mortgage loans:
Small Business Administration		850		1,075		-		1,042		25
Taxi Medallion		-		-		-		-		-
Commercial Business and other		4,391		5,741		-		5,102		53
Total loans with no related allowance recorded		108,883		128,600		-		134,768		1,889
With an allowance recorded:
Mortgage loans:
Multi-family residential		1,922		1,937		183		3,174		124
Commercial real estate		7,773		7,839		359		6,530		400
One-to-four family mixed-use property		3,314		3,313		571		4,385		205
One-to-four family residential		374		374		94		188		19
Co-operative apartments		-		-		-		101		-
Construction		3,805		3,805		38		4,275		140
Non-mortgage loans:
Small Business Administration		-		-		-		-		-
Taxi Medallion		-		-		-		-		-
Commercial Business and other		2,539		2,540		249		2,273		116
Total loans with an allowance recorded		19,727		19,808		1,494		20,926		1,004
Total Impaired Loans:
Total mortgage loans	$	120,830	$	139,052	$	1,245	$	147,277	$	2,699
Total non-mortgage loans	$	7,780	$	9,356	$	249	$	8,417	$	194

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		203		203		58		51		11
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

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.” These loan designations are updated quarterly.  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.  The Company does not hold any loans designated as loss, as 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, 2012:

(In thousands)	Special Mention		Substandard		Doubtful		Loss		Total
Multi-family residential	$	16,345	$	22,769	$	-	$	-	$	39,114
Commercial real estate		11,097		27,877		-		-		38,974
One-to-four family - mixed-use property		13,104		26,506		-		-		39,610
One-to-four family - residential		5,223		15,328		-		-		20,551
Co-operative apartments		103		237		-		-		340
Construction loans		3,805		10,598		-		-		14,403
Small Business Administration		323		212		244		-		779
Commercial business and other		3,044		18,419		1,080		-		22,543
Total loans	$	53,044	$	121,946	$	1,324	$	-	$	176,314

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

	2012			2011			2010
	(In thousands)
Balance, beginning of year	$	30,344		$	27,699		$	20,324
Provision for loan losses		21,000			21,500			21,000
Charge-offs		(21,269	)		(19,450	)		(14,595	)
Recoveries		1,029			595			970
Balance, end of year	$	31,104		$	30,344		$	27,699

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

	2012		2011		2010
	(In thousands)
Multi-family residential	$	5,872	$	6,654	$	5,773
Commercial real estate		2,439		4,988		2,634
One-to-four family ― mixed-use property		3,928		2,521		2,465
One-to-four family ― residential		1,554		2,163		236
Co-operative apartments		62		-		-
Construction		4,591		1,088		1,879
Small Business Administration		237		811		752
Commercial business and other		1,557		630		(114	)
Total net loan charge-offs	$	20,240	$	18,855	$	13,625