Loans Receivable and Allowance for Loan Losses (Tables)

12 Months Ended

Dec. 31, 2018

The following table presents loans receivable as of December 31, 2018 and 2017:



	December 31,
	2018			2017
(amounts in thousands)
Loans receivable, mortgage warehouse, at fair value	$	1,405,420		$	1,793,408
Loans receivable:
Commercial:
Multi-family	3,285,297			3,502,381
Commercial and industrial (including owner occupied commercial real estate)	1,951,277			1,633,818
Commercial real estate non-owner occupied	1,125,106			1,218,719
Construction	56,491			85,393
Total commercial loans receivable	6,418,171			6,440,311
Consumer:
Residential real estate	566,561			234,090
Manufactured housing	79,731			90,227
Other	74,035			3,547
Total consumer loans receivable	720,327			327,864
Loans receivable	7,138,498			6,768,175
Deferred (fees) costs and unamortized (discounts) premiums, net	(424		)	83
Allowance for loan losses	(39,972		)	(38,015		)
Total loans receivable, net of allowance for loan losses	$	8,503,522		$	8,523,651

Loans Receivable by Class and Performance Status

The following tables summarize loans receivable by loan type and performance status as of December 31, 2018 and 2017:



	December 31, 2018
	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	$	—	$	—	$	—	$	1,155	$	3,282,452	$	1,690	$	3,285,297
Commercial and industrial	1,914		—		1,914		17,764		1,353,586		536		1,373,800
Commercial real estate owner occupied	193		—		193		1,037		567,809		8,438		577,477
Commercial real estate non-owner occupied	1,190		—		1,190		129		1,119,443		4,344		1,125,106
Construction	—		—		—		—		56,491		—		56,491
Residential real estate	5,940		—		5,940		5,605		550,679		4,337		566,561
Manufactured housing ⁽⁵⁾	3,926		2,188		6,114		1,693		69,916		2,008		79,731
Other consumer	200		—		200		111		73,503		221		74,035
Total	$	13,363	$	2,188	$	15,551	$	27,494	$	7,073,879	$	21,574	$	7,138,498



	December 31, 2017
	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	$	4,900	$	—	$	4,900	$	—	$	3,495,600	$	1,881	$	3,502,381
Commercial and industrial	103		—		103		17,392		1,130,831		764		1,149,090
Commercial real estate owner occupied	202		—		202		1,453		472,501		10,572		484,728
Commercial real estate non-owner occupied	93		—		93		160		1,213,216		5,250		1,218,719
Construction	—		—		—		—		85,393		—		85,393
Residential real estate	7,628		—		7,628		5,420		215,361		5,681		234,090
Manufactured housing ⁽⁵⁾	4,028		2,743		6,771		1,959		78,946		2,551		90,227
Other consumer	116		—		116		31		3,184		216		3,547
Total	$	17,070	$	2,743	$	19,813	$	26,415	$	6,695,032	$	26,915	$	6,768,175


(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. Due to 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 supported by 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 years ended December 31, 2018 and 2017, and the loans and allowance for loan losses by loan type based on impairment-evaluation method are presented in the tables below.



Twelve months ended December 31, 2018	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, December 31, 2017	$	12,168		$	10,918		$	3,232		$	7,437		$	979		$	2,929		$	180		$	172		$	38,015
Charge-offs	—			(1,722		)	(747		)	—			—			(466		)	—			(1,822		)	(4,757		)
Recoveries	—			403			326			5			241			76			—			21			1,072
Provision for loan losses	(706		)	2,546			509			(1,349		)	(596		)	1,115			(35		)	4,158			5,642
Ending Balance, December 31, 2018	$	11,462		$	12,145		$	3,320		$	6,093		$	624		$	3,654		$	145		$	2,529		$	39,972

As of December 31, 2018
Loans:
Individually evaluated for impairment	$	1,155		$	17,828		$	1,069		$	129		$	—		$	8,631		$	10,195		$	111		$	39,118
Collectively evaluated for impairment	3,282,452			1,355,436			567,970			1,120,633			56,491			553,593			67,528			73,703			7,077,806
Loans acquired with credit deterioration	1,690			536			8,438			4,344			—			4,337			2,008			221			21,574
Total loans receivable	$	3,285,297		$	1,373,800		$	577,477		$	1,125,106		$	56,491		$	566,561		$	79,731		$	74,035		$	7,138,498
Allowance for loan losses:
Individually evaluated for impairment	$	539		$	261		$	1		$	—		$	—		$	41		$	3		$	—		$	845
Collectively evaluated for impairment	10,923			11,516			3,319			4,161			624			3,227			89			2,390			36,249
Loans acquired with credit deterioration	—			368			—			1,932			—			386			53			139			2,878
Allowance for loan losses	$	11,462		$	12,145		$	3,320		$	6,093		$	624		$	3,654		$	145		$	2,529		$	39,972



Twelve months ended December 31, 2017	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, December 31, 2016	$	11,602	$	11,050		$	2,183		$	7,894		$	840		$	3,342		$	286		$	118		$	37,315
Charge-offs	—		(4,157		)	(731		)	(486		)	—			(415		)	—			(1,338		)	(7,127		)
Recoveries	—		676			9			—			164			72			—			138			1,059
Provision for loan losses	566		3,349			1,771			29			(25		)	(70		)	(106		)	1,254			6,768
Ending Balance, December 31, 2017	$	12,168	$	10,918		$	3,232		$	7,437		$	979		$	2,929		$	180		$	172		$	38,015

Loans:
Individually evaluated for impairment	$	—	$	17,461		$	1,448		$	160		$	—		$	9,247		$	10,089		$	30		$	38,435
Collectively evaluated for impairment	3,500,500		1,130,865			472,708			1,213,309			85,393			219,162			77,587			3,301			6,702,825
Loans acquired with credit deterioration	1,881		764			10,572			5,250			—			5,681			2,551			216			26,915
Total loans receivable	$	3,502,381	$	1,149,090		$	484,728		$	1,218,719		$	85,393		$	234,090		$	90,227		$	3,547		$	6,768,175
Allowance for loan losses:
Individually evaluated for impairment	$	—	$	650		$	642		$	—		$	—		$	155		$	4		$	—		$	1,451
Collectively evaluated for impairment	12,168		9,804			2,580			4,630			979			2,177			82			117			32,537
Loans acquired with credit deterioration	—		464			10			2,807			—			597			94			55			4,027
Allowance for loan losses	$	12,168	$	10,918		$	3,232		$	7,437		$	979		$	2,929		$	180		$	172		$	38,015

Summary of Impaired Loans

Purchased-credit-impaired loans are considered to be performing and are not included in the tables below.



	December 31, 2018						Twelve Months Ended, December 31, 2018
	Recorded Investment Net of Charge Offs		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
(amounts in thousands)
With no related allowance recorded:
Multi-family	$	—	$	—	$	—	$	537	$	8
Commercial and industrial	13,660		15,263		—		8,831		673
Commercial real estate owner occupied	1,037		1,766		—		776		19
Commercial real estate non-owner occupied	129		241		—		645		48
Residential real estate	4,842		5,128		—		4,129		151
Manufactured housing	10,027		10,027		—		10,015		561
Other consumer	111		111		—		89		1
With an allowance recorded:
Multi-family	1,155		1,155		539		231		37
Commercial and industrial	4,168		4,351		261		6,504		25
Commercial real estate owner occupied	32		32		1		443		3
Residential real estate	3,789		3,789		41		4,566		131
Manufactured housing	168		168		3		214		14
Total	$	39,118	$	42,031	$	845	$	36,980	$	1,671



	December 31, 2017						Twelve Months Ended, December 31, 2017				Twelve Months Ended, December 31, 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	$	—	$	—	$	—	$	—	$	—	$	964	$	53
Commercial and industrial	9,138		9,287		—		8,865		214		15,424		804
Commercial real estate owner occupied	806		806		—		1,439		70		7,963		426
Commercial real estate non-owner occupied	160		272		—		898		2		5,265		155
Residential real estate	3,628		3,801		—		4,617		24		4,567		120
Manufactured housing	9,865		9,865		—		10,003		558		8,961		465
Other consumer	30		30		—		51		—		47		—
With an allowance recorded:
Multi-family	—		—		—		—		—		232		—
Commercial and industrial	8,323		8,506		650		5,984		230		7,028		436
Commercial real estate owner occupied	642		642		642		882		—		173		—
Commercial real estate non-owner occupied	—		—		—		—		—		380		—
Residential real estate	5,619		5,656		155		3,307		187		395		—
Manufactured housing	224		224		4		131		8		—		—
Other consumer	—		—		—		—		—		29		—
Total	$	38,435	$	39,089	$	1,451	$	36,177	$	1,293	$	51,428	$	2,459

Schedule of Total TDRs Based on Loan Type and Accrual Status [Policy Text Block]

The following table presents total TDRs based on loan type and accrual status at December 31, 2018, 2017, and 2016. Nonaccrual TDRs are included in the reported amount of total non-accrual loans.



	December 31,
	2018						2017						2016
	Accruing TDRs		Nonaccrual TDRs		Total		Accruing TDRs		Nonaccrual TDRs		Total		Accruing TDRs		Nonaccrual TDRs		Total
(amounts in thousands)
Commercial and industrial	$	64	$	5,273	$	5,337	$	63	$	5,939	$	6,002	$	73	$	146	$	219
Commercial real estate owner occupied	32		—		32		—		—		—		12		—		12
Commercial real estate non-owner occupied	—		—		—		—		—		—		—		1,945		1,945
Residential real estate	3,026		667		3,693		3,828		703		4,531		4,012		707		4,719
Manufactured housing	8,502		1,620		10,122		8,130		1,766		9,896		7,429		2,072		9,501
Other consumer	—		12		12		—		—		—		—		—		—
Total TDRs	$	11,624	$	7,572	$	19,196	$	12,021	$	8,408	$	20,429	$	11,526	$	4,870	$	16,396

Analysis of Loans Modified in Troubled Debt Restructuring by Type of Concession

The following table presents loans modified in a TDR by type of concession for the years ended December 31, 2018, 2017 and 2016. There were no modifications that involved forgiveness of debt for the years ended December 31, 2018, 2017 and 2016.



	For the Years Ended December 31,
	2018			2017			2016
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
(dollars in thousands)
Extensions of maturity	2	$	60	5	$	6,497	3	$	1,995
Interest-rate reductions	39	1,615		35	1,574		61	4,621
Total	41	$	1,675	40	$	8,071	64	$	6,616

Summary of Loans and Leases Modified in Troubled Debt Restructurings and Recorded Investments

The following table provides, by loan type, the number of loans modified in TDRs and the related recorded investment for the years ended December 31, 2018, 2017 and 2016.



	For the Years Ended December 31,
	2018			2017			2016
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
(dollars in thousands)
Commercial and industrial	—	$	—	4	$	6,437	1	$	76
Commercial real estate non-owner occupied	—	—		—	—		1	1,844
Residential real estate	2	352		—	—		4	2,410
Manufactured housing	38	1,310		36	1,634		58	2,286
Other consumer	1	13		—	—		—	—
Total loans	41	$	1,675	40	$	8,071	64	$	6,616

Changes in Accretable Discount Related to Purchased Credit Impaired Loans

The changes in accretable yield related to PCI loans for the years ended December 31, 2018, 2017 and 2016, were as follows:



	For the Years Ended December 31,
	2018			2017			2016
(amounts in thousands)
Accretable yield balance, beginning of period	$	7,825		$	10,202		$	12,947
Accretion to interest income	(1,455		)	(1,673		)	(3,760		)
Reclassification from nonaccretable difference and disposals, net	(192		)	(704		)	1,015
Accretable yield balance, end of period	$	6,178		$	7,825		$	10,202

Schedule of Changes in Allowance for Loans Losses

The following table presents changes in the allowance for loans losses and the FDIC loss sharing receivable, including the effect of the estimated Clawback liability for the years ended December 31, 2018, 2017 and 2016.



	Allowance for Loan Losses For the Years Ended December 31,
	2018			2017			2016
(amounts in thousands)
Ending balance as of December 31,	$	38,015		$	37,315		$	35,647
Provision for loan losses (1)	5,642			6,768			3,330
Charge-offs	(4,757		)	(7,127		)	(4,405		)
Recoveries	1,072			1,059			2,743
Ending balance as of December 31,	$	39,972		$	38,015		$	37,315

Schedule of FDIC Loss Sharing Receivable



	FDIC Loss Sharing Receivable For the Years Ended December 31,
	2018		2017		2016
(amounts in thousands)
Ending balance as of December 31,	$	—	$	—	$	(2,083	)
Increased estimated cash flows (2)	—		—		289
Other activity, net ^(a)	—		—		(255		)
Cash payments to the FDIC	—		—		2,049
Ending balance as of December 31,	$	—	$	—	$	—

(1) Provision for loan losses	$	5,642	$	6,768	$	3,330
(2) Effect attributable to FDIC loss sharing agreements	—		—		(289		)
Net amount reported as provision for loan losses	$	5,642	$	6,768	$	3,041


(a)	Includes external costs, such as legal fees, real estate taxes and appraisal expenses, that qualified for reimbursement under the loss sharing agreements.

Credit Quality Tables

The following tables present the credit ratings of loans receivable as of December 31, 2018 and 2017.



	December 31, 2018
	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 ⁽³⁾
(amounts in thousands)
Pass/Satisfactory	$	3,201,822	$	1,306,466	$	562,639	$	1,054,493	$	56,491	$	—	$	—	$	—	$	6,181,911
Special Mention	55,696		30,551		9,730		30,203		—		—		—		—		126,180
Substandard	27,779		36,783		5,108		40,410		—		—		—		—		110,080
Performing ⁽¹⁾	—		—		—		—		—		555,016		71,924		73,724		700,664
Non-performing ⁽²⁾	—		—		—		—		—		11,545		7,807		311		19,663
Total	$	3,285,297	$	1,373,800	$	577,477	$	1,125,106	$	56,491	$	566,561	$	79,731	$	74,035	$	7,138,498



	December 31, 2017
	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 ⁽³⁾
(amounts in thousands)
Pass/Satisfactory	$	3,438,554	$	1,118,889	$	471,826	$	1,185,933	$	85,393	$	—	$	—	$	—	$	6,300,595
Special Mention	53,873		7,652		5,987		31,767		—		—		—		—		99,279
Substandard	9,954		22,549		6,915		1,019		—		—		—		—		40,437
Performing ⁽¹⁾	—		—		—		—		—		221,042		81,497		3,400		305,939
Non-performing ⁽²⁾	—		—		—		—		—		13,048		8,730		147		21,925
Total	$	3,502,381	$	1,149,090	$	484,728	$	1,218,719	$	85,393	$	234,090	$	90,227	$	3,547	$	6,768,175

Schedule of Loan Purchases and Sales

Purchases and sales of loans were as follows for the years ended December 31, 2018, 2017 and 2016:



	For the Years Ended December 31,
	2018			2017			2016
(amounts in thousands)
Purchases ⁽¹⁾
Residential real estate	$	368,402		$	264,090		$	—
Other consumer	30,066			—			—
Total	$	398,468		$	264,090		$	—
Sales ⁽²⁾
Multi-family	$	(54,638	)	$	(226,831	)	$	—
Commercial and industrial ⁽³⁾	(32,263		)	(19,974		)	(23,731		)
Commercial real estate owner occupied ⁽³⁾	(20,218		)	(19,813		)	(15,342		)
Residential real estate	—			(191,574		)	—
Other consumer	—			—			—
Total	$	(107,119	)	$	(458,192	)	$	(39,073	)


(1)	The purchase price was 99.9% and 99.4% of loans outstanding for the years ended December 31, 2018 and 2017, respectively. There were no loan purchases during the year ended December 31, 2016.


(2)	Loan sales resulted in a net gain of $3.3 million, $4.2 million and $3.7 million for the years ended December 31, 2018, 2017 and 2016, respectively.