Loans (Tables)

3 Months Ended

Mar. 31, 2017

The following table sets forth the composition of the loan portfolio at March 31, 2017 and December 31, 2016:


	March 31, 2017						December 31, 2016
	Amount			Percent of Non-Covered Loans Held for Investment			Amount			Percent of Non-Covered Loans Held for Investment
(dollars in thousands)
Non-Covered Loans Held for Investment:
Mortgage Loans:
Multi-family	$	27,036,909			72.47	%	$	26,945,052			72.13	%
Commercial real estate		7,533,380			20.19			7,724,362			20.68
One-to-four family		416,983			1.12			381,081			1.02
Acquisition, development, and construction		383,001			1.03			381,194			1.02

Total mortgage loans held for investment	$	35,370,273			94.81		$	35,431,689			94.85

Other Loans:
Commercial and industrial		1,348,391			3.61			1,341,216			3.59
Lease financing, net of unearned income of $57,365 and $60,278, respectively		563,244			1.51			559,229			1.50
Total commercial and industrial loans ⁽¹⁾		1,911,635			5.12			1,900,445			5.09
Purchased credit-impaired loans		5,840			0.02			5,762			0.01
Other		17,105			0.05			18,305			0.05

Total other loans held for investment		1,934,580			5.19			1,924,512			5.15

Total non-covered loans held for investment	$	37,304,853			100.00	%	$	37,356,201			100.00	%

Net deferred loan origination costs		25,636						26,521
Allowance for losses on non-covered loans		(154,450)						(158,290)
Non-covered loans held for investment, net	$	37,176,039					$	37,224,432

Covered loans		1,599,101						1,698,133
Allowance for losses on covered loans		(17,906	)					(23,701	)

Covered loans, net	$	1,581,195					$	1,674,432
Loans held for sale		215,981						409,152

Total loans, net	$	38,973,215					$	39,308,016

(1)	Includes specialty finance loans of $1.3 billion at both March 31, 2017 and December 31, 2016, and other commercial and industrial loans of $629.6 million and $632.9 million, respectively, at March 31, 2017 and December 31, 2016.

Quality of Non-Covered Loans

The following table presents information regarding the quality of the Company’s non-covered loans held for investment (excluding non-covered PCI loans) at March 31, 2017:


(in thousands)	Loans 30-89 Days Past Due⁽¹⁾		Non-Accrual Loans ⁽¹⁾		Loans 90 Days or More Delinquent and Still Accruing Interest		Total Past Due Loans		Current Loans		Total Loans Receivable
Multi-family	$	8	$	11,555	$	—	$	11,563	$	27,025,346	$	27,036,909
Commercial real estate		1,202		3,327		—		4,529		7,528,851		7,533,380
One-to-four family		792		10,093		—		10,885		406,098		416,983
Acquisition, development, and construction		—		6,200		—		6,200		376,801		383,001
Commercial and industrial ^{(2) (3)}		14,379		27,652		—		42,031		1,869,604		1,911,635
Other		86		1,317		—		1,403		15,702		17,105

Total	$	16,467	$	60,144	$	—	$	76,611	$	37,222,402	$	37,299,013

(1)	Excludes $4 thousand and $863 thousand of non-covered PCI loans that were 30 to 89 days past due and 90 days or more past due, respectively.

(2)	Includes lease financing receivables, all of which were current.

(3)	Includes $13.3 million and $24.4 million of taxi medallion loans or taxi medallion-related loans that were 30 to 89 days past due and 90 days or more past due, respectively.

The following table presents information regarding the quality of the Company’s non-covered loans held for investment at December 31, 2016:


(in thousands)	Loans 30-89 Days Past Due⁽¹⁾		Non-Accrual Loans ⁽¹⁾		Loans 90 Days or More Delinquent and Still Accruing Interest		Total Past Due Loans		Current Loans		Total Loans Receivable
Multi-family	$	28	$	13,558	$	—	$	13,586	$	26,931,466	$	26,945,052
Commercial real estate		—		9,297		—		9,297		7,715,065		7,724,362
One-to-four family		2,844		9,679		—		12,523		368,558		381,081
Acquisition, development, and construction		—		6,200		—		6,200		374,994		381,194
Commercial and industrial ^{(2) (3)}		7,263		16,422		—		23,685		1,876,760		1,900,445
Other		248		1,313		—		1,561		16,744		18,305

Total	$	10,383	$	56,469	$	—	$	66,852	$	37,283,587	$	37,350,439

(1)	Excludes $6 thousand and $869 thousand of non-covered PCI loans that were 30 to 89 days past due and 90 days or more past due, respectively.

(2)	Includes lease financing receivables, all of which were current.

(3)	Includes $6.8 million and $15.2 million of taxi medallion loans that were 30 to 89 days past due and 90 days or more past due, respectively.

Non-Covered Loan Portfolio by Credit Quality Indicator

The following table summarizes the Company’s portfolio of non-covered loans held for investment (excluding non-covered PCI loans) by credit quality indicator at March 31, 2017:


	Mortgage Loans										Other Loans
(in thousands)	Multi-Family		Commercial Real Estate		One-to-Four Family		Acquisition, Development, and Construction		Total Mortgage Loans		Commercial and Industrial⁽¹⁾		Other		Total Other Loans
Credit Quality Indicator:
Pass	$	26,865,172	$	7,516,823	$	406,669	$	334,112	$	35,122,776	$	1,785,111	$	15,788	$	1,800,899
Special mention		160,329		12,550		—		42,689		215,568		41,573		—		41,573
Substandard		11,408		4,007		10,314		6,200		31,929		84,951		1,317		86,268
Doubtful		—		—		—		—		—		—				—

Total	$	27,036,909	$	7,533,380	$	416,983	$	383,001	$	35,370,273	$	1,911,635	$	17,105	$	1,928,740

(1)	Includes lease financing receivables, all of which were classified as “pass.”

The following table summarizes the Company’s portfolio of non-covered loans held for investment (excluding non-covered PCI loans) by credit quality indicator at December 31, 2016:


	Mortgage Loans										Other Loans
(in thousands)	Multi-Family		Commercial Real Estate		One-to-Four Family		Acquisition, Development, and Construction		Total Mortgage Loans		Commercial and Industrial⁽¹⁾		Other		Total Other Loans
Credit Quality Indicator:
Pass	$	26,754,622	$	7,701,773	$	371,179	$	341,784	$	35,169,358	$	1,771,975	$	16,992	$	1,788,967
Special mention		164,325		12,604		—		33,210		210,139		54,979		—		54,979
Substandard		26,105		9,985		9,902		6,200		52,192		73,491		1,313		74,804
Doubtful		—		—		—		—		—		—		—		—

Total	$	26,945,052	$	7,724,362	$	381,081	$	381,194	$	35,431,689	$	1,900,445	$	18,305	$	1,918,750

(1)	Includes lease financing receivables, all of which were classified as “pass.”

Information Regarding Troubled Debt Restructurings

The following table presents information regarding the Company’s TDRs as of March 31, 2017 and December 31, 2016:


	March 31, 2017						December 31, 2016
(in thousands)	Accruing		Non-Accrual		Total		Accruing		Non-Accrual		Total
Loan Category:
Multi-family	$	1,971	$	8,245	$	10,216	$	1,981	$	8,755	$	10,736
Commercial real estate		—		921		921		—		1,861		1,861
One-to-four family		221		2,508		2,729		222		1,749		1,971
Commercial and industrial		1,434		8,320		9,754		1,263		3,887		5,150
Other		—		202		202		—		202		202

Total	$	3,626	$	20,196	$	23,822	$	3,466	$	16,454	$	19,920

Financial Effects of Troubled Debt Restructurings

The financial effects of the Company’s TDRs for the three months ended March 31, 2017 and 2016 are summarized as follows:


	For the Three Months Ended March 31, 2017
(dollars in thousands)							Weighted Average Interest Rate
(dollars in thousands)	Number of Loans		Pre-Modification Recorded Investment		Post-Modification Recorded Investment		Pre-Modification			Post- Modification			Charge-off Amount		Capitalized Interest
Loan Category:
One-to-four family		1	$	264	$	339		6.00	%		2.63	%	$	—	$	5
Commercial and industrial		17		7,998		4,745		3.30			3.46			3,280		—

Total		18	$	8,262	$	5,084							$	3,280	$	5


	For the Three Months Ended March 31, 2016
(dollars in thousands)							Weighted Average Interest Rate
(dollars in thousands)	Number of Loans		Pre-Modification Recorded Investment		Post-Modification Recorded Investment		Pre-Modification			Post- Modification			Charge-off Amount		Capitalized Interest
Loan Category:
Multi-family		2	$	10,592	$	10,366		4.63	%		4.08	%	$	—	$	—
One-to-four family		2		476		533		3.52			3.29			—		4
Commercial and industrial		1		745		695		3.30			3.10			47		—

Total		5	$	11,813	$	11,594							$	47	$	4

Covered Loans Acquired in Acquisitions of AmTrust Bank ("Am Trust") and Desert Hills Bank ("Desert Hills")

The following table presents the carrying value of covered loans acquired in the acquisitions of AmTrust Bank (“AmTrust”) and Desert Hills Bank (“Desert Hills”) as of March 31, 2017:


(dollars in thousands)	Amount		Percent of Covered Loans
Loan Category:
One-to-four family	$	1,531,872		95.8	%
Other loans		67,229		4.2

Total covered loans	$	1,599,101		100.0	%

Changes in Accretable Yield for Covered Loans

In the three months ended March 31, 2017, changes in the accretable yield for covered loans were as follows:


(in thousands)	Accretable Yield
Balance at beginning of period	$	647,470
Reclassification from non-accretable difference		15,858
Accretion		(31,615	)

Balance at end of period	$	631,713

Covered Loans Thirty to Eighty Nine Days, Ninety Days or More Past Due

The following table presents information regarding the Company’s covered loans that were 90 days or more past due at March 31, 2017 and December 31, 2016:


(in thousands)	March 31, 2017		December 31, 2016
Covered Loans 90 Days or More Past Due:
One-to-four family	$	120,841	$	124,820
Other loans		6,626		6,645

Total covered loans 90 days or more past due	$	127,467	$	131,465

The following table presents information regarding the Company’s covered loans that were 30 to 89 days past due at March 31, 2017 and December 31, 2016:


(in thousands)	March 31, 2017		December 31, 2016
Covered Loans 30-89 Days Past Due:
One-to-four family	$	22,287	$	21,112
Other loans		2,349		1,536

Total covered loans 30-89 days past due	$	24,636	$	22,648