Loans (Tables)

9 Months Ended

Sep. 30, 2013



	September 30,	December 31,
	2013	2012
Real estate loans:
Multifamily	$ 756,469	$ 610,129
Commercial mortgage	349,610	315,450
One-to-four family residential mortgage	63,260	64,733
Home equity and lines of credit	45,346	33,573
Construction and land	19,029	23,243
Total real estate loans	1,233,714	1,047,128
Commercial and industrial loans	14,639	14,786
Other loans	1,834	1,830
Total commercial and industrial and other loans	16,473	16,616
Deferred loan cost, net	3,094	2,456
Originated loans held-for-investment, net	1,253,281	1,066,200
PCI Loans	62,802	75,349
Loans acquired:
Multifamily	3,963	5,763
Commercial mortgage	13,748	17,053
One-to-four family residential mortgage	63,700	78,237
Construction and land	373	380
Total loans acquired, net	81,784	101,433
Loans held-for-investment, net	1,397,867	1,242,982
Allowance for loan losses	(27,114)	(26,424)
Net loans held-for-investment	$ 1,370,753	$ 1,216,558

Summary of Accretable Yield



	Three months ended		Nine months ended
	September 30,		September 30,
	2013	2012	2013	2012
Balance at the beginning of period	$ 40,454	$ 39,311	$ 43,431	$ 42,493
Accretion into interest income	(1,385)	(1,499)	(4,362)	(4,681)
Balance at end of period	$ 39,069	$ 37,812	$ 39,069	$ 37,812

Activity in Allowance for Loan Losses



	At or for the nine months ended September 30,
	2013	2012
Beginning balance	$ 26,424	$ 26,836
Provision for loan losses	1,511	1,661
Charge-offs, net	(821)	(1,428)
Ending balance	$ 27,114	$ 27,069

Allowance for Loan Losses and Loans Receivable by Portfolio Segment and Based on Impairment Method



	September 30, 2013
	Real Estate
	Commercial	One-to-Four Family	Construction and Land	Multifamily	Home Equity and Lines of Credit	Commercial and Industrial	Other	Unallocated	Originated Loans Total	Purchased Credit-Impaired	Total
Allowance for loan losses:
Beginning Balance	$ 13,343	$ 623	$ 994	$ 7,086	$ 623	$ 2,297	$ 21	$ 1,201	$ 26,188	$ 236	$ 26,424
Charge-offs	(854)	(320)	-	(187)	(96)	(40)	(26)	-	(1,523)	-	(1,523)
Recoveries	21	-	567	13	-	81	20	-	702	-	702
Provisions	819	493	(954)	754	428	(189)	54	106	1,511	-	1,511
Ending Balance	$ 13,329	$ 796	$ 607	$ 7,666	$ 955	$ 2,149	$ 69	$ 1,307	$ 26,878	$ 236	$ 27,114

Ending balance: individually evaluated for impairment	$ 2,380	$ 18	$ -	$ 130	$ 150	$ 113	$ -	$ -	$ 2,791	$ -	$ 2,791

Ending balance: collectively evaluated for impairment	$ 10,949	$ 778	$ 607	$ 7,536	$ 805	$ 2,036	$ 69	$ 1,307	$ 24,087	$ 236	$ 24,323

Originated loans, net:
Ending Balance	$ 349,913	$ 63,779	$ 19,043	$ 758,149	$ 45,895	$ 14,668	$ 1,834	$ -	$ 1,253,281	$ -	$ 1,253,281

Ending balance: individually evaluated for impairment	$ 32,858	$ 1,121	$ 109	$ 2,093	$ 1,740	$ 1,620	$ -	$ -	$ 39,541	$ -	$ 39,541

Ending balance: collectively evaluated for impairment	$ 317,055	$ 62,658	$ 18,934	$ 756,056	$ 44,155	$ 13,048	$ 1,834	$ -	$ 1,213,740	$ -	$ 1,213,740



	December 31, 2012
	Real Estate
	Commercial	One-to-Four Family	Construction and Land	Multifamily	Home Equity and Lines of Credit	Commercial and Industrial	Other	Unallocated	Total	Purchased Credit-Impaired	Total
Allowance for loan losses:
Beginning Balance	$ 14,120	$ 967	$ 1,189	$ 6,772	$ 418	$ 2,035	$ 226	$ 1,109	$ 26,836	$ -	$ 26,836
Charge-offs	(1,828)	(1,300)	(43)	(729)	(2)	(90)	(201)	-	(4,193)	-	(4,193)
Recoveries	107	-	-	9	-	86	43	-	245	-	245
Provisions	944	956	(152)	1,034	207	266	(47)	92	3,300	236	3,536
Ending Balance	$ 13,343	$ 623	$ 994	$ 7,086	$ 623	$ 2,297	$ 21	$ 1,201	$ 26,188	$ 236	$ 26,424

Ending balance: individually evaluated for impairment	$ 1,617	$ 5	$ -	$ 317	$ 123	$ 1,553	$ -	$ -	$ 3,615	$ -	$ 3,615

Ending balance: collectively evaluated for impairment	$ 11,726	$ 618	$ 994	$ 6,769	$ 500	$ 744	$ 21	$ 1,201	$ 22,573	$ 236	$ 22,809

Originated loans, net:
Ending balance	$ 315,603	$ 65,354	$ 23,255	$ 611,469	$ 33,879	$ 14,810	$ 1,830	$ -	$ 1,066,200	$ -	$ 1,066,200

Ending balance: individually evaluated for impairment	$ 41,568	$ 2,061	$ -	$ 2,040	$ 1,943	$ 4,087	$ -	$ -	$ 51,699	$ -	$ 51,699

Ending balance: collectively evaluated for impairment	$ 274,035	$ 63,293	$ 23,255	$ 609,429	$ 31,936	$ 10,723	$ 1,830	$ -	$ 1,014,501	$ -	$ 1,014,501

Investment of Originated Loans Held-for-Investment, Net of Deferred Fees and Costs, by Loan Type and Credit Quality Indicator



	At September 30, 2013
	Real Estate
	Multifamily		Commercial		One-to-Four Family		Construction and Land	Home Equity and Lines of Credit	Commercial and Industrial	Other	Total
	< 35% LTV	=> 35% LTV	< 35% LTV	=> 35% LTV	< 60% LTV	=> 60% LTV
Internal Risk Rating
Pass	$ 33,640	$ 707,204	$ 41,995	$ 249,870	$ 28,983	$ 27,877	$ 13,811	$ 43,689	$ 10,622	$ 1,834	$ 1,159,525
Special Mention	314	11,128	1,779	12,687	1,391	1,620	5,124	516	1,496	-	36,055
Substandard	-	5,863	1,726	41,856	1,268	2,640	108	1,690	2,550	-	57,701
Originated loans held-for-investment, net	$ 33,954	$ 724,195	$ 45,500	$ 304,413	$ 31,642	$ 32,137	$ 19,043	$ 45,895	$ 14,668	$ 1,834	$ 1,253,281


	At December 31, 2012
	Real Estate
	Multifamily		Commercial		One-to-Four Family		Construction and Land	Home Equity and Lines of Credit	Commercial and Industrial	Other	Total
	< 35% LTV	=> 35% LTV	< 35% LTV	=> 35% LTV	< 60% LTV	=> 60% LTV
Internal Risk Rating
Pass	$ 19,438	$ 575,434	$ 30,284	$ 211,679	$ 32,120	$ 28,091	$ 12,536	$ 31,526	$ 10,992	$ 1,804	$ 953,904
Special Mention	115	10,444	185	23,521	1,422	384	5,137	659	753	-	42,620
Substandard	510	5,528	1,699	48,235	1,066	2,271	5,582	1,694	3,065	26	69,676
Originated loans held-for-investment, net	$ 20,063	$ 591,406	$ 32,168	$ 283,435	$ 34,608	$ 30,746	$ 23,255	$ 33,879	$ 14,810	$ 1,830	$ 1,066,200

Estimated Expected Future Cash Flows of Each PCI Loan Pool



	At September 30, 2013
	Total Non-Performing Loans
	Non-Accruing Loans
	0-29 Days Past Due	30-89 Days Past Due	90 Days or More Past Due	Total	90 Days or More Past Due and Accruing	Total Non-Performing Loans
Loans held-for-investment:
Real estate loans:
Commercial
LTV < 35%
Substandard	$ 353	$ -	$ -	$ 353	$ -	$ 353
Total	353	-	-	353	-	353
LTV => 35%
Substandard	2,454	8,753	785	11,992	-	11,992
Total	2,454	8,753	785	11,992	-	11,992
Total commercial	2,807	8,753	785	12,345	-	12,345
One-to-four family residential
LTV < 60%
Special Mention	151	16	114	281	-	281
Substandard	180	242	186	608	-	608
Total	331	258	300	889	-	889
LTV => 60%
Substandard	191	-	1,834	2,025	-	2,025
Total	191	-	1,834	2,025	-	2,025
Total one-to-four family residential	522	258	2,134	2,914	-	2,914
Construction and land
Substandard	108	-	-	108	-	108
Total construction and land	108	-	-	108	-	108
Multifamily
LTV => 35%
Substandard	-	-	73	73	-	73
Total multifamily	-	-	73	73	-	73
Home equity and lines of credit
Special Mention	-	-	43	43	-	43
Substandard	104	-	1,586	1,690	-	1,690
Total home equity and lines of credit	104	-	1,629	1,733	-	1,733
Commercial and industrial loans
Pass	-	-	-	-	1	1
Special Mention	-	-	11	11	-	11
Substandard	70	447	245	762	-	762
Total commercial and industrial loans	70	447	256	773	1	774
Other loans
Pass	-	-	-	-	17	17
Total other loans	-	-	-	-	17	17
Total non-performing loans held-for-investment	3,611	9,458	4,877	17,946	18	17,964
Loans acquired:
One-to-four family residential
LTV < 60%
Substandard	-	-	103	103	-	103
Total	-	-	103	103	-	103
LTV => 60%
Substandard	305	-	1,127	1,432	-	1,432
Total	305	-	1,127	1,432	-	1,432
Total one-to-four family residential	305	-	1,230	1,535	-	1,535
Total non-performing loans acquired	305	-	1,230	1,535	-	1,535
Total non-performing loans	$ 3,916	$ 9,458	$ 6,107	$ 19,481	$ 18	$ 19,499



	At December 31, 2012
	Total Non-Performing Loans
	Non-Accruing Loans
	0-29 Days Past Due	30-89 Days Past Due	90 Days or More Past Due	Total	90 Days or More Past Due and Accruing	Total Non-Performing Loans
Loans held-for-investment:
Real estate loans:
Commercial
LTV < 35%
Substandard	$ 1,699	$ -	$ -	$ 1,699	$ -	$ 1,699
Total	1,699	-	-	1,699	-	1,699
LTV => 35%
Substandard	13,947	442	5,565	19,954	349	20,303
Total	13,947	442	5,565	19,954	349	20,303
Total commercial	15,646	442	5,565	21,653	349	22,002
One-to-four family residential
LTV < 60%
Special Mention	-	19	229	248	119	367
Substandard	-	429	-	429	-	429
Total	-	448	229	677	119	796
LTV => 60%
Substandard	233	201	1,437	1,871	151	2,022
Total	233	201	1,437	1,871	151	2,022
Total one-to-four family residential	233	649	1,666	2,548	270	2,818
Construction and land
Substandard	2,070	-	-	2,070	-	2,070
Total construction and land	2,070	-	-	2,070	-	2,070
Multifamily
LTV => 35%
Substandard			279	279	-	279
Total multifamily	-	-	279	279	-	279
Home equity and lines of credit
Substandard	107	-	1,587	1,694	-	1,694
Total home equity and lines of credit	107	-	1,587	1,694	-	1,694
Commercial and industrial loans
Substandard	532	-	724	1,256	-	1,256
Total commercial and industrial loans	532	-	724	1,256	-	1,256
Other loans
Pass	-	-	-	-	2	2
Total other loans	-	-	-	-	2	2
Total non-performing loans held-for-investment	18,588	1,091	9,821	29,500	621	30,121
Loans held-for-sale:
Commercial
LTV => 35%
Substandard	-		773	773	-	773
Total commercial	-	-	773	773	-	773
One-to-four family residential
LTV => 60%
Substandard	122	-	3,662	3,784	-	3,784
Total one-to-four family residential	122	-	3,662	3,784	-	3,784
Multifamily
LTV => 35%
Substandard	-	-	890	890	-	890
Total multifamily	-	-	890	890	-	890
Total non-performing loans held-for-sale	122	-	5,325	5,447	-	5,447
Total non-performing loans	$ 18,710	$ 1,091	$ 15,146	$ 34,947	$ 621	$ 35,568

Detail and Delinquency Status of Originated Loans Held-for-Investment, Net of Deferred Fees and Costs, by Performing and Non-Performing Loans



	September 30, 2013
	Performing (Accruing) Loans
	0-29 Days Past Due	30-89 Days Past Due	Total	Non-Performing Loans	Total Loans Receivable, net
Loans held-for-investment:
Real estate loans:
Commercial
LTV < 35%
Pass	$ 41,995	$ -	$ 41,995	$ -	$ 41,995
Special Mention	1,315	464	1,779	-	1,779
Substandard	1,373	-	1,373	353	1,726
Total	44,683	464	45,147	353	45,500
LTV > 35%
Pass	249,192	678	249,870	-	249,870
Special Mention	10,994	1,693	12,687	-	12,687
Substandard	27,445	2,419	29,864	11,992	41,856
Total	287,631	4,790	292,421	11,992	304,413
Total commercial	332,314	5,254	337,568	12,345	349,913
One-to-four family residential
LTV < 60%
Pass	28,522	461	28,983	-	28,983
Special Mention	693	417	1,110	281	1,391
Substandard	341	319	660	608	1,268
Total	29,556	1,197	30,753	889	31,642
LTV > 60%
Pass	25,237	2,640	27,877	-	27,877
Special Mention	1,620	-	1,620	-	1,620
Substandard	369	246	615	2,025	2,640
Total	27,226	2,886	30,112	2,025	32,137
Total one-to-four family residential	56,782	4,083	60,865	2,914	63,779
Construction and land
Pass	13,811	-	13,811	-	13,811
Special Mention	5,124	-	5,124	-	5,124
Substandard	-	-	-	108	108
Total construction and land	18,935	-	18,935	108	19,043
Multifamily
LTV < 35%
Pass	33,640	-	33,640	-	33,640
Special Mention	99	215	314	-	314
Total	33,739	215	33,954	-	33,954
LTV > 35%
Pass	706,414	790	707,204	-	707,204
Special Mention	9,736	1,392	11,128	-	11,128
Substandard	4,960	830	5,790	73	5,863
Total	721,110	3,012	724,122	73	724,195
Total multifamily	754,849	3,227	758,076	73	758,149
Home equity and lines of credit
Pass	43,689	-	43,689	-	43,689
Special Mention	380	93	473	43	516
Substandard	-	-	-	1,690	1,690
Total home equity and lines of credit	44,069	93	44,162	1,733	45,895
Commercial and industrial loans
Pass	10,486	135	10,621	1	10,622
Special Mention	983	502	1,485	11	1,496
Substandard	218	1,570	1,788	762	2,550
Total commercial and industrial loans	11,687	2,207	13,894	774	14,668
Other loans
Pass	1,807	10	1,817	17	1,834
Total other loans	1,807	10	1,817	17	1,834
Total loans held-for-investment	1,220,443	14,874	1,235,317	17,964	1,253,281


Loans acquired:
One-to-four family residential
LTV < 60%
Pass	45,601	693	46,294	-	46,294
Special Mention	415	-	415	-	415
Substandard	138	6	144	103	247
Total one-to-four family residential	46,154	699	46,853	103	46,956
LTV => 60%
Pass	14,667	144	14,811	-	14,811
Special Mention	235	-	235	-	235
Substandard	266	-	266	1,432	1,698
Total	15,168	144	15,312	1,432	16,744
Total one-to-four family residential	61,322	843	62,165	1,535	63,700
Commercial
LTV < 35%
Pass	2,837	531	3,368	-	3,368
Special Mention	190	-	190	-	190
Total	3,027	531	3,558	-	3,558
LTV > 35%
Pass	9,248	-	9,248	-	9,248
Substandard	942	-	942	-	942
Total	10,190	-	10,190	-	10,190
Total commercial	13,217	531	13,748	-	13,748
Construction and land
Substandard	373	-	373	-	373
Total construction and land	373	-	373	-	373
Multifamily
LTV < 35%
Pass	597	-	597	-	597
Substandard	490	-	490	-	490
Total	1,087	-	1,087	-	1,087
LTV => 35%
Pass	2,276	-	2,276	-	2,276
Special Mention	600	-	600	-	600
Total	2,876	-	2,876	-	2,876
Total multifamily	3,963	-	3,963	-	3,963
Total loans acquired	78,875	1,374	80,249	1,535	81,784
	$ 1,299,318	$ 16,248	$ 1,315,566	$ 19,499	$ 1,335,065



	December 31, 2012
	Performing (Accruing) Loans
	0-29 Days Past Due	30-89 Days Past Due	Total	Non-Performing Loans	Total Loans Receivable, net
Loans held-for-investment:
Real estate loans:
Commercial
LTV < 35%
Pass	$ 29,424	$ 860	$ 30,284	$ -	$ 30,284
Special Mention	185	-	185	-	185
Substandard	-	-	-	1,699	1,699
Total	29,609	860	30,469	1,699	32,168
LTV > 35%
Pass	208,908	2,771	211,679	-	211,679
Special Mention	22,416	1,105	23,521	-	23,521
Substandard	27,932	-	27,932	20,303	48,235
Total	259,256	3,876	263,132	20,303	283,435
Total commercial	288,865	4,736	293,601	22,002	315,603
One-to-four family residential
LTV < 60%
Pass	29,154	2,966	32,120	-	32,120
Special Mention	1,055	-	1,055	367	1,422
Substandard	448	189	637	429	1,066
Total	30,657	3,155	33,812	796	34,608
LTV > 60%
Pass	26,963	1,128	28,091	-	28,091
Special Mention	384	-	384	-	384
Substandard	249	-	249	2,022	2,271
Total	27,596	1,128	28,724	2,022	30,746
Total one-to-four family residential	58,253	4,283	62,536	2,818	65,354
Construction and land
Pass	12,377	159	12,536	-	12,536
Special Mention	5,137	-	5,137	-	5,137
Substandard	3,512	-	3,512	2,070	5,582
Total construction and land	21,026	159	21,185	2,070	23,255
Multifamily
LTV < 35%
Pass	19,438	-	19,438	-	19,438
Special Mention	-	115	115	-	115
Substandard	510	-	510	-	510
Total	19,948	115	20,063	-	20,063
LTV > 35%
Pass	574,686	748	575,434	-	575,434
Special Mention	9,134	1,310	10,444	-	10,444
Substandard	4,909	340	5,249	279	5,528
Total	588,729	2,398	591,127	279	591,406
Total multifamily	608,677	2,513	611,190	279	611,469
Home equity and lines of credit
Pass	31,482	44	31,526	-	31,526
Special Mention	659	-	659	-	659
Substandard	-	-	-	1,694	1,694
Total home equity and lines of credit	32,141	44	32,185	1,694	33,879
Commercial and industrial loans
Pass	10,356	636	10,992	-	10,992
Special Mention	753	-	753	-	753
Substandard	978	831	1,809	1,256	3,065
Total commercial and industrial loans	12,087	1,467	13,554	1,256	14,810
Other loans
Pass	1,743	59	1,802	2	1,804
Substandard	26	-	26	-	26
Total other loans	1,769	59	1,828	2	1,830
	$ 1,022,818	$ 13,261	$ 1,036,079	$ 30,121	$ 1,066,200

Summary of Impaired Loans



	At September 30, 2013
	Recorded Investment	Unpaid Principal Balance	Related Allowance
With No Allowance Recorded:
Real estate loans:
Commercial
LTV => 35%
Pass	$ 3,428	$ 3,565	$ -
Substandard	10,440	11,424	-
Construction and land
Substandard	109	91	-
One-to-four family residential
LTV < 60%
Special Mention	510	510	-
Substandard	271	271	-
Multifamily
LTV > 35%
Substandard	599	1,070	-
Commercial and industrial loans
Special Mention	212	221	-
Substandard	865	865	-
With a Related Allowance Recorded:
Real estate loans:
Commercial
LTV < 35%
Substandard	353	353	(73)
LTV => 35%
Special Mention	2,312	2,696	(76)
Substandard	16,325	17,134	(2,231)
One-to-four family residential
LTV > 60%
Pass	340	340	(18)
Multifamily
LTV => 35%
Substandard	1,494	1,494	(130)
Home equity and lines of credit
Special Mention	345	345	(10)
Substandard	1,395	1,395	(140)
Commercial and industrial loans
Substandard	543	581	(113)
Total:
Real estate loans
Commercial	32,858	35,172	(2,380)
One-to-four family residential	1,121	1,121	(18)
Construction and land	109	91	-
Multifamily	2,093	2,564	(130)
Home equity and lines of credit	1,740	1,740	(150)
Commercial and industrial loans	1,620	1,667	(113)
	$ 39,541	$ 42,355	$ (2,791)



	At December 31, 2012
	Recorded Investment	Unpaid Principal Balance	Related Allowance
With No Allowance Recorded:
Real estate loans:
Commercial
LTV < 35%
Substandard	$ 1,699	$ 1,699	$ -
LTV => 35%
Pass	2,774	2,774
Special Mention	1,037	1,045	-
Substandard	24,691	25,897	-
Construction and land
Substandard	2,373	3,031	-
One-to-four family residential
LTV < 60%
Substandard	49	49	-
LTV => 60%
Substandard	2,841	4,141	-
Multifamily
LTV < 35%
Substandard	510	510	-
Commercial and industrial loans
Special Mention	38	38	-
Substandard	1,527	1,527	-
With a Related Allowance Recorded:
Real estate loans:
Commercial
LTV => 35%
Special Mention	637	664	(57)
Substandard	11,645	12,045	(1,560)
One-to-four family residential
LTV < 60%
Special Mention	520	520	(5)
Multifamily
LTV => 35%
Substandard	1,640	2,111	(317)
Home equity and lines of credit
Special Mention	356	356	(18)
Substandard	1,587	1,589	(105)
Commercial and industrial loans
Substandard	491	491	(1,553)
Total:
Real estate loans
Commercial	42,483	44,124	(1,617)
One-to-four family residential	3,410	4,710	(5)
Construction and land	2,373	3,031	-
Multifamily	2,150	2,621	(317)
Home equity and lines of credit	1,943	1,945	(123)
Commercial and industrial loans	2,056	2,056	(1,553)
	$ 54,415	$ 58,487	$ (3,615)

Summary of Troubled Debt Restructuring



	Nine Months Ended September 30, 2013
		Pre-Modification	Post-Modification
	Number of	Outstanding Recorded	Outstanding Recorded
	Relationships	Investment	Investment
	(in thousands)
Troubled Debt Restructurings
One-to-four Family
Special Mention	2	$ 404	$ 404
Total Troubled Debt Restructurings	2	$ 404	$ 404

Both of the relationships in the table above were restructured to receive reduced interest rates.



	Year Ended December 31, 2012
		Pre-Modification	Post-Modification
	Number of	Outstanding Recorded	Outstanding Recorded
	Relationships	Investment	Investment
	(in thousands)
Troubled Debt Restructurings
Commercial real estate loans
Substandard	1	$ 6,251	$ 6,251
One-to-four Family
Substandard	2	489	489
Home equity and lines of credit
Special Mention	2	356	356
Total Troubled Debt Restructurings	5	$ 7,096	$ 7,096