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Note 3 - Loans

12 Months Ended

Dec. 31, 2014

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

3. Loans

The composition of loans is as follows at December 31:

	2014		2013
	(In thousands)
Multi-family residential	$	1,923,460	$	1,712,039
Commercial real estate		621,569		512,552
One-to-four family ― mixed-use property		573,779		595,751
One-to-four family ― residential		187,572		193,726
Co-operative apartments		9,835		10,137
Construction		5,286		4,247
Small Business Administration		7,134		7,792
Taxi medallion		22,519		13,123
Commercial business and other		447,500		373,641
Gross loans		3,798,654		3,423,008
Unearned loan fees and deferred costs, net		11,719		11,170
Total loans	$	3,810,373	$	3,434,178

The total amount of loans on non-accrual status was $31.9 million and $48.0 million at December 31, 2014 and 2013, respectively. The total amount of loans classified as impaired, which includes all loans on non-accrual status, was $56.5 million and $81.8 million at December 31, 2014 and 2013, 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 $65.8 million and $95.0 million for 2014 and 2013, 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.

There were no loans modified and classified as TDR during the year ended December 31, 2014.

The following table shows loans modified and classified as TDR during the year ended December 31, 2013:

	For the year ended December 31, 2013
(Dollars in thousands)	Number		Balance		Modification description


Multi-family residential		2	$	698	Received a below market interest rate and the loan amortization was extended
Commercial real estate		1		273	Received a below market interest rate and the loan amortization was extended
One-to-four family - mixed-use property		1		390	Received a below market interest rate and the loan amortization was extended
Commercial business and other		2		687	Received a below market interest rate and the loan amortization was extended
Total		6	$	2,048

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, 2014				December 31, 2013
(Dollars in thousands)	Number of contracts		Recorded investment		Number of contracts		Recorded investment

Multi-family residential		10	$	3,034		10	$	3,087
Commercial real estate		3		2,373		3		2,407
One-to-four family - mixed-use property		7		2,381		8		2,692
One-to-four family - residential		1		354		1		364
Construction		-		-		1		746
Commercial business and other		4		2,249		5		4,406

Total performing troubled debt restructured		25	$	10,391		28	$	13,702

During the year ended December 31, 2014, three TDR loans totaling $2.7 million were transferred to non-performing status, which resulted in these loans being included in non-performing loans. Two of these loans, subsequent to being transferred to non-performing loans, were paid in full during the year ended December 31, 2014. Additionally, during the year ended December 31, 2014, one loan for $0.4 million was transferred from performing non-accrual status to performing accrual status as it has made timely payments for six consecutive months. During the year ended December 31, 2013, no TDR loans were transferred to non-performing status.

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, 2014				December 31, 2013
(Dollars in thousands)	Number of contracts		Recorded investment		Number of contracts		Recorded investment

Commercial real estate		1	$	2,252		1	$	2,332
One-to-four family - mixed-use property		1		187		-		-

Total troubled debt restructurings that subsequently defaulted		2	$	2,439		1	$	2,332

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

	At December 31,
(In thousands)	2014		2013

Loans ninety days or more past due and still accruing:
Multi-family residential	$	676	$	52
Commercial real estate		820		-
One-to-four family mixed-use property		405		-
One-to-four family residential		14		15
Commercial Business and other		386		539
Total		2,301		606

Non-accrual mortgage loans:
Multi-family residential		6,878		13,297
Commercial real estate		5,689		9,962
One-to-four family mixed-use property		6,936		9,063
One-to-four family residential		11,244		13,250
Co-operative apartments		-		57
Total		30,747		45,629

Non-accrual non-mortgage loans:
Commercial Business and other		1,143		2,348
Total		1,143		2,348

Total non-accrual loans		31,890		47,977

Total non-accrual loans and ninety days or more past due and still accruing	$	34,191	$	48,583

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

	2014		2013		2012
	(In thousands)
Interest income that would have been recognized had the loans performed in accordance with their original terms	$	2,919	$	4,656	$	9,026
Less: Interest income included in the results of operations		796		1,213		1,692
Total foregone interest	$	2,123	$	3,443	$	7,334

The following table shows an age analysis of our recorded investment in loans at December 31, 2014:

(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	$	7,721	$	1,729	$	7,554	$	17,004	$	1,906,456	$	1,923,460
Commercial real estate		1,612		1,903		6,510		10,025		611,544		621,569
One-to-four family - mixed-use property		10,408		1,154		7,341		18,903		554,876		573,779
One-to-four family - residential		1,751		2,244		11,051		15,046		172,526		187,572
Co-operative apartments		-		-		-		-		9,835		9,835
Construction loans		3,000		-		-		3,000		2,286		5,286
Small Business Administration		90		-		-		90		7,044		7,134
Taxi medallion		-		-		-		-		22,519		22,519
Commercial business and other		6		1,585		740		2,331		445,169		447,500
Total	$	24,588	$	8,615	$	33,196	$	66,399	$	3,732,255	$	3,798,654

The following table shows an age analysis of our recorded investment in loans at December 31, 2013:

(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	$	14,101	$	3,684	$	13,349	$	31,134	$	1,680,905	$	1,712,039
Commercial real estate		5,029		7,699		9,962		22,690		489,862		512,552
One-to-four family - mixed-use property		14,017		1,099		9,063		24,179		571,572		595,751
One-to-four family - residential		3,828		518		12,968		17,314		176,412		193,726
Co-operative apartments		99		-		144		243		9,894		10,137
Construction loans		-		-		-		-		4,247		4,247
Small Business Administration		106		-		-		106		7,686		7,792
Taxi medallion		-		-		-		-		13,123		13,123
Commercial business and other		187		2		1,752		1,941		371,700		373,641
Total	$	37,367	$	13,002	$	47,238	$	97,607	$	3,325,401	$	3,423,008

The following table shows the activity in the allowance for loan losses for the year ended December 31, 2014:

(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	$	12,084		$	4,959		$	6,328		$	2,079		$	104		$	444		$	458		$	-	$	5,320		$	31,776
Charge-off's		(1,161	)		(325	)		(423	)		(103	)		-			-			(49	)		-		(381	)		(2,442	)
Recoveries		150			481			608			269			7			-			92			-		176			1,783
Provision (benefit)		(2,246	)		(913	)		(673	)		(555	)		(111	)		(402	)		(222	)		11		(910	)		(6,021	)
Ending balance	$	8,827		$	4,202		$	5,840		$	1,690		$	-		$	42		$	279		$	11	$	4,205		$	25,096
Ending balance: individually evaluated for impairment	$	286		$	21		$	579		$	54		$	-		$	-		$	-		$	-	$	154		$	1,094
Ending balance: collectively evaluated for impairment	$	8,541		$	4,181		$	5,261		$	1,636		$	-		$	42		$	279		$	11	$	4,051		$	24,002

Financing Receivables:
Ending balance	$	1,923,460		$	621,569		$	573,779		$	187,572		$	9,835		$	5,286		$	7,134		$	22,519	$	447,500		$	3,798,654
Ending balance: individually evaluated for impairment	$	13,260		$	9,473		$	15,120		$	13,170		$	-		$	-		$	-		$	-	$	5,492		$	56,515
Ending balance: collectively evaluated for impairment	$	1,910,200		$	612,096		$	558,659		$	174,402		$	9,835		$	5,286		$	7,134		$	22,519	$	442,008		$	3,742,139

The following table shows the activity in the allowance for loan losses for the year ended December 31, 2013:

(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	$	13,001		$	5,705		$	5,960		$	1,999		$	46		$	66		$	505		$	7		$	3,815		$	31,104
Charge-off's		(3,585	)		(1,051	)		(4,206	)		(701	)		(108	)		(2,678	)		(457	)		-			(2,057	)		(14,843	)
Recoveries		541			324			266			272			4			-			87			-			86			1,580
Provision (benefit)		2,127			(19	)		4,308			509			162			3,056			323			(7	)		3,476			13,935
Ending balance	$	12,084		$	4,959		$	6,328		$	2,079		$	104		$	444		$	458		$	-		$	5,320		$	31,776
Ending balance: individually evaluated for impairment	$	312		$	164		$	875		$	58		$	-		$	17		$	-		$	-		$	222		$	1,648
Ending balance: collectively evaluated for impairment	$	11,772		$	4,795		$	5,453		$	2,021		$	104		$	427		$	458		$	-		$	5,098		$	30,128

Financing Receivables:
Ending balance	$	1,712,039		$	512,552		$	595,751		$	193,726		$	10,137		$	4,247		$	7,792		$	13,123		$	373,641		$	3,423,008
Ending balance: individually evaluated for impairment	$	21,757		$	19,757		$	16,939		$	14,390		$	59		$	746		$	-		$	-		$	8,120		$	81,768
Ending balance: collectively evaluated for impairment	$	1,690,282		$	492,795		$	578,812		$	179,336		$	10,078		$	3,501		$	7,792		$	13,123		$	365,521		$	3,341,240

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, 2014:

	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
	(In thousands)
With no related allowance recorded:
Mortgage loans:
Multi-family residential	$	10,481	$	11,551	$	-	$	14,168	$	194
Commercial real estate		7,100		7,221		-		11,329		51
One-to-four family mixed-use property		12,027		13,381		-		12,852		321
One-to-four family residential		12,816		15,709		-		13,015		103
Co-operative apartments		-		-		-		-		-
Construction		-		-		-		285		-
Non-mortgage loans:
Small Business Administration		-		-		-		-		-
Taxi Medallion		-		-		-		-		-
Commercial Business and other		2,779		3,149		-		3,428		137
Total loans with no related allowance recorded		45,203		51,011		-		55,077		806

With an allowance recorded:
Mortgage loans:
Multi-family residential		2,779		2,779		286		2,936		149
Commercial real estate		2,373		2,373		21		3,242		167
One-to-four family mixed-use property		3,093		3,093		579		3,249		170
One-to-four family residential		354		354		54		358		14
Co-operative apartments		-		-		-		-		-
Construction		-		-		-		187		-
Non-mortgage loans:
Small Business Administration		-		-		-		-		-
Taxi Medallion		-		-		-		-		-
Commercial Business and other		2,713		2,713		154		3,149		115
Total loans with an allowance recorded		11,312		11,312		1,094		13,121		615

Total Impaired Loans:
Total mortgage loans	$	51,023	$	56,461	$	940	$	61,621	$	1,169

Total non-mortgage loans	$	5,492	$	5,862	$	154	$	6,577	$	252

	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized

	(In thousands)
With no related allowance recorded:
Mortgage loans:
Multi-family residential	$	18,709	$	20,931	$	-	$	22,091	$	402
Commercial real estate		16,721		17,405		-		19,846		266
One-to-four family mixed-use property		12,748		15,256		-		13,916		319
One-to-four family residential		14,026		17,527		-		14,529		125
Co-operative apartments		59		147		-		189		-
Construction		-		118		-		4,014		-
Non-mortgage loans:
Small Business Administration		-		-		-		247		-
Taxi Medallion		-		-		-		-		-
Commercial Business and other		3,225		5,527		-		5,309		268
Total loans with no related allowance recorded		65,488		76,911		-		80,141		1,380

With an allowance recorded:
Mortgage loans:
Multi-family residential		3,048		3,049		312		2,892		170
Commercial real estate		3,036		3,102		164		6,388		194
One-to-four family mixed-use property		4,191		4,221		875		4,041		228
One-to-four family residential		364		364		58		368		15
Co-operative apartments		-		-		-		-		-
Construction		746		746		17		1,929		18
Non-mortgage loans:
Small Business Administration		-		-		-		-		-
Taxi Medallion		-		-		-		-		-
Commercial Business and other		4,895		4,894		222		4,354		239
Total loans with an allowance recorded		16,280		16,376		1,648		19,972		864

Total Impaired Loans:
Total mortgage loans	$	73,648	$	82,866	$	1,426	$	90,203	$	1,737

Total non-mortgage loans	$	8,120	$	10,421	$	222	$	9,910	$	507

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, 2014:

(In thousands)	Special Mention		Substandard		Doubtful		Loss		Total

Multi-family residential	$	6,494	$	10,226	$	-	$	-	$	16,720
Commercial real estate		5,453		7,100		-		-		12,553
One-to-four family - mixed-use property		5,254		12,499		-		-		17,753
One-to-four family - residential		2,352		13,056		-		-		15,408
Co-operative apartments		623		-		-		-		623
Construction loans		-		-		-		-		-
Small Business Administration		479		-		-		-		479
Commercial business and other		2,841		3,779		-		-		6,620
Total loans	$	23,496	$	46,660	$	-	$	-	$	70,156

The following table sets forth the recorded investment in loans designated as Criticized or Classified at December 31, 2013:

(In thousands)	Special Mention		Substandard		Doubtful		Loss		Total

Multi-family residential	$	9,940	$	19,089	$	-	$	-	$	29,029
Commercial real estate		13,503		16,820		-		-		30,323
One-to-four family - mixed-use property		7,992		14,898		-		-		22,890
One-to-four family - residential		2,848		14,026		-		-		16,874
Co-operative apartments		-		59		-		-		59
Construction loans		746		-		-		-		746
Small Business Administration		310		-		-		-		310
Commercial business and other		7,314		8,450		50		-		15,814
Total loans	$	42,653	$	73,342	$	50	$	-	$	116,045

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

	2014			2013			2012
	(In thousands)
Balance, beginning of year	$	31,776		$	31,104		$	30,344
Provision (benefit) for loan losses		(6,021	)		13,935			21,000
Charge-offs		(2,442	)		(14,843	)		(21,269	)
Recoveries		1,783			1,580			1,029
Balance, end of year	$	25,096		$	31,776		$	31,104

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

	2014			2013		2012
	(In thousands)
Multi-family residential	$	1,011		$	3,044	$	5,872
Commercial real estate		(156	)		727		2,439
One-to-four family ― mixed-use property		(185	)		3,940		3,928
One-to-four family ― residential		(166	)		429		1,554
Co-operative apartments		(7	)		104		62
Construction		-			2,678		4,591
Small Business Administration		(43	)		370		237
Commercial business and other		205			1,971		1,557
Total net loan charge-offs	$	659		$	13,263	$	20,240

- Definition

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

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