Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | May. 04, 2016 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | NYB | |
Entity Registrant Name | NEW YORK COMMUNITY BANCORP INC | |
Entity Central Index Key | 910,073 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 487,016,052 |
Consolidated Statements of Cond
Consolidated Statements of Condition - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | |||
Assets: | |||||
Cash and cash equivalents | $ 650,880 | $ 537,674 | |||
Securities: | |||||
Available-for-sale | 152,249 | 204,255 | |||
Held-to-maturity ($1,889,548 and $2,152,939 pledged, respectively) (fair value of $4,304,161 and $6,108,529, respectively) | 4,068,750 | [1] | 5,969,390 | [2] | |
Total securities | 4,220,999 | 6,173,645 | |||
Non-covered loans held for sale | 471,276 | 367,221 | |||
Non-covered loans held for investment, net of deferred loan fees and costs | 36,175,882 | 35,763,204 | |||
Less: Allowance for losses on non-covered loans | (150,778) | (147,124) | |||
Non-covered loans held for investment, net | 36,025,104 | 35,616,080 | |||
Covered loans | 1,986,054 | 2,060,089 | |||
Less: Allowance for losses on covered loans | (28,498) | (31,395) | |||
Covered loans, net | 1,957,556 | 2,028,694 | |||
Total loans, net | 38,453,936 | 38,011,995 | |||
Federal Home Loan Bank stock, at cost | [3] | 551,247 | 663,971 | ||
Premises and equipment, net | 325,017 | 322,307 | |||
FDIC loss share receivable | 296,953 | 314,915 | |||
Goodwill | 2,436,131 | 2,436,131 | |||
Core deposit intangibles, net | 1,753 | 2,599 | |||
Mortgage servicing rights | 213,268 | 247,734 | |||
Bank-owned life insurance | 933,498 | 931,627 | |||
Other real estate owned (includes $24,455 and $25,817, respectively, covered by loss sharing agreements) | 39,869 | 39,882 | |||
Other assets | 392,021 | 635,316 | |||
Total assets | 48,515,572 | 50,317,796 | |||
Deposits: | |||||
NOW and money market accounts | 13,337,556 | 13,069,019 | |||
Savings accounts | 6,020,058 | 7,541,566 | |||
Certificates of deposit | 6,788,712 | 5,312,487 | |||
Non-interest-bearing accounts | 2,835,986 | 2,503,686 | |||
Total deposits | 28,982,312 | 28,426,758 | |||
Wholesale borrowings: | |||||
Federal Home Loan Bank advances | 10,933,100 | 13,463,800 | |||
Repurchase agreements | 1,500,000 | 1,500,000 | |||
Fed funds purchased | 553,000 | 426,000 | |||
Total wholesale borrowings | 12,986,100 | 15,389,800 | |||
Junior subordinated debentures | 358,672 | 358,605 | |||
Total borrowed funds | 13,344,772 | 15,748,405 | |||
Other liabilities | 203,688 | 207,937 | |||
Total liabilities | $ 42,530,772 | $ 44,383,100 | |||
Stockholders' equity: | |||||
Preferred stock at par $0.01 (5,000,000 shares authorized; none issued) | |||||
Common stock at par $0.01 (600,000,000 shares authorized; 486,931,184 and 484,968,024 shares issued, and 486,929,814 and 484,943,308 shares outstanding, respectively) | $ 4,869 | $ 4,850 | |||
Paid-in capital in excess of par | 6,023,421 | 6,023,882 | |||
Retained earnings (accumulated deficit) | 11,135 | (36,568) | |||
Treasury stock, at cost (1,370 and 24,716 shares, respectively) | (21) | (447) | |||
Accumulated other comprehensive loss, net of tax: | |||||
Net unrealized gain on securities available for sale, net of tax of $2,899 and $2,153, respectively | 4,093 | 3,031 | |||
Net unrealized loss on the non-credit portion of other-than-temporary impairment ("OTTI") losses on securities, net of tax of $3,388 and $3,400, respectively | (5,299) | (5,318) | |||
Net unrealized loss on pension and post-retirement obligations, net of tax of $36,334 and $37,279, respectively | (53,398) | (54,734) | |||
Total accumulated other comprehensive loss, net of tax | (54,604) | (57,021) | |||
Total stockholders' equity | 5,984,800 | 5,934,696 | |||
Total liabilities and stockholders' equity | $ 48,515,572 | $ 50,317,796 | |||
[1] | Held-to-maturity securities are reported at a carrying amount equal to amortized cost less the non-credit portion of OTTI recorded in Accumulated Other Comprehensive Loss ("AOCL"). At March 31, 2016, the non-credit portion of OTTI recorded in AOCL was $8.7 million, pre-tax. | ||||
[2] | Held-to-maturity securities are reported at a carrying amount equal to amortized cost less the non-credit portion of OTTI recorded in AOCL. At December 31, 2015, the non-credit portion of OTTI recorded in AOCL was $8.7 million, pre-tax. | ||||
[3] | Carrying value and estimated fair value are at cost. |
Consolidated Statements of Con3
Consolidated Statements of Condition (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | ||
Securities held to maturity, pledged | $ 1,889,548 | $ 2,152,939 | ||
Securities held to maturity, fair value | 4,304,161 | [1] | 6,108,529 | [2] |
Other real estate owned, covered by loss sharing agreements | $ 24,455 | $ 25,817 | ||
Preferred stock, par | $ 0.01 | $ 0.01 | ||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | ||
Preferred stock, issued | 0 | 0 | ||
Common stock, par | $ 0.01 | $ 0.01 | ||
Common stock, shares authorized | 600,000,000 | 600,000,000 | ||
Common stock, shares issued | 486,931,184 | 484,968,024 | ||
Common stock, shares outstanding | 486,929,814 | 484,943,308 | ||
Treasury stock, shares | 1,370 | 24,716 | ||
Net unrealized gain on securities available for sale, tax | $ 2,899 | $ 2,153 | ||
Net unrealized loss on the non-credit portion of other-than-temporary impairment losses on securities, tax | 3,388 | 3,400 | ||
Net unrealized loss on pension and post-retirement obligations, tax | $ 36,334 | $ 37,279 | ||
[1] | Held-to-maturity securities are reported at a carrying amount equal to amortized cost less the non-credit portion of OTTI recorded in Accumulated Other Comprehensive Loss ("AOCL"). At March 31, 2016, the non-credit portion of OTTI recorded in AOCL was $8.7 million, pre-tax. | |||
[2] | Held-to-maturity securities are reported at a carrying amount equal to amortized cost less the non-credit portion of OTTI recorded in AOCL. At December 31, 2015, the non-credit portion of OTTI recorded in AOCL was $8.7 million, pre-tax. |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Interest Income: | |||
Mortgage and other loans | $ 360,723 | $ 364,504 | |
Securities and money market investments | 63,087 | 64,409 | |
Total interest income | 423,810 | 428,913 | |
Interest Expense: | |||
NOW and money market accounts | 14,619 | 11,052 | |
Savings accounts | 10,208 | 12,333 | |
Certificates of deposit | 15,890 | 17,116 | |
Borrowed funds | 55,227 | 95,644 | |
Total interest expense | 95,944 | 136,145 | |
Net interest income | 327,866 | 292,768 | |
Provision for (recovery of) losses | (176) | 7 | |
Net interest income after provisions for (recoveries) loan losses | 328,042 | 292,761 | |
Non-Interest Income: | |||
Mortgage banking income | 4,138 | 18,406 | |
Fee income | 7,923 | 8,394 | |
Bank-owned life insurance | 9,336 | 6,704 | |
Net gain on sales of securities | 163 | 211 | |
FDIC indemnification (expense) income | (2,318) | 702 | |
Other income | 15,995 | 17,817 | |
Total non-interest income | [1] | 35,237 | 52,234 |
Operating expenses: | |||
Compensation and benefits | 89,304 | 87,209 | |
Occupancy and equipment | 25,815 | 25,299 | |
General and administrative | 41,270 | 42,744 | |
Total operating expenses | 156,389 | 155,252 | |
Amortization of core deposit intangibles | 846 | 1,584 | |
Merger-related expenses | 1,213 | ||
Total non-interest expense | [2] | 158,448 | 156,836 |
Income before income taxes | 204,831 | 188,159 | |
Income tax expense | 74,922 | 68,900 | |
Net income | 129,909 | 119,259 | |
Other comprehensive income, net of tax: | |||
Change in net unrealized gain on securities available for sale, net of tax of $746 and $1,161, respectively | 1,062 | 1,715 | |
Change in the non-credit portion of OTTI losses recognized in other comprehensive income, net of tax of $12 and $11, respectively | 19 | 17 | |
Change in pension and post-retirement obligations, net of tax of $945 and $844, respectively | 1,336 | 1,248 | |
Total other comprehensive income, net of tax | 2,417 | 2,980 | |
Total comprehensive income, net of tax | $ 132,326 | $ 122,239 | |
Basic earnings per share | $ 0.27 | $ 0.27 | |
Diluted earnings per share | $ 0.27 | $ 0.27 | |
Non-Covered Loans | |||
Interest Expense: | |||
Provision for (recovery of) losses | $ 2,721 | $ (870) | |
Covered Loans | |||
Interest Expense: | |||
Provision for (recovery of) losses | $ (2,897) | $ 877 | |
[1] | Includes ancillary fee income. | ||
[2] | Includes both direct and indirect expenses. |
Consolidated Statements of Inc5
Consolidated Statements of Income and Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Change in net unrealized gain on securities available for sale, tax | $ 746 | $ 1,161 |
Change in the non-credit portion of OTTI losses recognized in other comprehensive income, tax | 12 | 11 |
Change in pension and post-retirement obligations, tax | $ 945 | $ 844 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity - 3 months ended Mar. 31, 2016 - USD ($) $ in Thousands | Total | Common Stock (Par Value: $0.01): | Paid-in Capital in Excess of Par: | Retained Earnings: | Treasury Stock: | Accumulated Other Comprehensive Loss, net of tax: | |
Balance at beginning of year at Dec. 31, 2015 | $ 5,934,696 | $ 4,850 | $ 6,023,882 | $ (36,568) | $ (447) | $ (57,021) | |
Net income | 129,909 | 129,909 | |||||
Purchase of common stock (535,546 shares) | (8,222) | ||||||
Other comprehensive income, net of tax | 2,417 | 2,417 | |||||
Dividends paid on common stock ($0.17 per share) | (82,618) | ||||||
Shares issued for restricted stock awards (1,963,160 shares) | 19 | (8,668) | 8,648 | ||||
Effect of adopting Accounting Standards Update ("ASU") No. 2016-09 | [1] | 412 | |||||
Compensation expense related to restricted stock awards | 8,207 | ||||||
Balance at end of period at Mar. 31, 2016 | $ 5,984,800 | $ 4,869 | $ 6,023,421 | $ 11,135 | $ (21) | $ (54,604) | |
[1] | See Note 14, "Impact of Recent Accounting Pronouncements" for a discussion of the Company's adoption of ASU No. 2016-09. |
Consolidated Statement of Chan7
Consolidated Statement of Changes in Stockholders' Equity (Parenthetical) | 3 Months Ended |
Mar. 31, 2016$ / sharesshares | |
Common Stock (Par Value: $0.01): | |
Shares issued for restricted stock awards, shares | 1,963,160 |
Retained Earnings: | |
Dividends paid on common stock, per share | $ / shares | $ 0.17 |
Treasury Stock: | |
Purchase of common stock, shares | 535,546 |
Shares issued for restricted stock awards, shares | 558,892 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Cash Flows from Operating Activities: | |||
Net income | $ 129,909 | $ 119,259 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
(Recovery of) provision for loan losses | (176) | 7 | |
Depreciation and amortization | 8,053 | 7,645 | |
Amortization of discounts and premiums, net | (8,470) | (1,670) | |
Amortization of core deposit intangibles | 846 | 1,584 | |
Net gain on sales of securities | (163) | (211) | |
Gain on sales of loans | (19,386) | (21,461) | |
Stock plan-related compensation | 8,207 | 7,165 | |
Deferred tax expense | 18,027 | 9,419 | |
Changes in assets and liabilities: | |||
Decrease in other assets | 293,865 | 12,625 | |
(Decrease) increase in other liabilities | (21,286) | 29,606 | |
Origination of loans held for sale | (899,100) | (1,492,222) | |
Proceeds from sales of loans originated for sale | 801,347 | 1,404,595 | |
Net cash provided by operating activities | 311,673 | 76,341 | |
Cash Flows from Investing Activities: | |||
Proceeds from repayment of securities held to maturity | 1,923,149 | 139,544 | |
Proceeds from repayment of securities available for sale | 49,959 | 886 | |
Proceeds from sales of securities available for sale | 104,663 | 135,211 | |
Purchase of securities held to maturity | (10,086) | ||
Purchase of securities available for sale | (104,500) | (135,000) | |
Net redemption of Federal Home Loan Bank stock | 112,724 | 50,385 | |
Proceeds from sales of loans | 585,616 | 559,261 | |
Other changes in loans, net | (910,243) | (321,684) | |
Purchase of premises and equipment, net | (10,763) | (10,682) | |
Net cash provided by investing activities | 1,740,519 | 417,921 | |
Cash Flows from Financing Activities: | |||
Net increase in deposits | 555,554 | 602,653 | |
Net decrease in short-term borrowed funds | (2,403,700) | (1,161,000) | |
Proceeds from long-term borrowed funds | 200,000 | ||
Repayments of long-term borrowed funds | (1,085) | ||
Tax effect of stock plans | [1] | 996 | |
Cash dividends paid on common stock | (82,618) | (110,851) | |
Payments relating to treasury shares received for restricted stock award tax payments | [1] | (8,222) | (6,567) |
Net cash used in financing activities | (1,938,986) | (475,854) | |
Net increase in cash and cash equivalents | 113,206 | 18,408 | |
Cash and cash equivalents at beginning of period | 537,674 | 564,150 | |
Cash and cash equivalents at end of period | 650,880 | 582,558 | |
Supplemental information: | |||
Cash paid for interest | 91,079 | 139,220 | |
Cash paid for income taxes | 2 | 10,698 | |
Non-cash investing and financing activities: | |||
Transfers to other real estate owned from loans | 9,456 | 17,098 | |
Transfer of loans from held for investment to held for sale | 579,841 | 553,315 | |
Transfer of loans from held for sale to held for investment | 153,578 | ||
Shares issued for restricted stock awards | $ 8,668 | $ 7,694 | |
[1] | See Note 14, "Impact of Recent Accounting Pronouncements" for a discussion of the Company's adoption of ASU No. 2016-09. |
Organization and Basis of Prese
Organization and Basis of Presentation | 3 Months Ended |
Mar. 31, 2016 | |
Organization and Basis of Presentation | Note 1. Organization and Basis of Presentation Organization Formerly known as Queens County Bancorp, Inc., New York Community Bancorp, Inc. (on a stand-alone basis, the “Parent Company” or, collectively with its subsidiaries, the “Company”) was organized under Delaware law on July 20, 1993 and is the holding company for New York Community Bank and New York Commercial Bank (hereinafter referred to as the “Community Bank” and the “Commercial Bank,” respectively, and collectively as the “Banks”). In addition, for the purpose of these Consolidated Financial Statements, the “Community Bank” and the “Commercial Bank” refer not only to the respective banks but also to their respective subsidiaries. The Community Bank is the primary banking subsidiary of the Company. Founded on April 14, 1859 and formerly known as Queens County Savings Bank, the Community Bank converted from a state-chartered mutual savings bank to the capital stock form of ownership on November 23, 1993, at which date the Company issued its initial offering of common stock (par value: $0.01 per share) at a price of $25.00 per share ($0.93 per share on a split-adjusted basis, reflecting the impact of nine stock splits between 1994 and 2004). The Commercial Bank was established on December 30, 2005. Reflecting its growth through acquisitions, the Community Bank currently operates 226 branches, two of which operate directly under the Community Bank name. The remaining 224 Community Bank branches operate through seven divisional banks: Queens County Savings Bank, Roslyn Savings Bank, Richmond County Savings Bank, and Roosevelt Savings Bank in New York; Garden State Community Bank in New Jersey; AmTrust Bank in Florida and Arizona; and Ohio Savings Bank in Ohio. The Commercial Bank currently operates 30 branches in Manhattan, Queens, Brooklyn, Westchester County, and Long Island (all in New York), including 18 branches that operate under the name “Atlantic Bank.” On September 17, 2015, the Company submitted an application to the FDIC and the New York State Department of Financial Services requesting approval to merge the Commercial Bank with and into the Community Bank. The merger of the Company’s two bank subsidiaries is not expected to impact either bank’s customers or employees. On October 29, 2015, the Company announced the signing of a definitive merger agreement with Astoria Financial Corporation (“Astoria Financial”). The merger was approved by shareholders of both companies on April 26, 2016. Pending receipt of the necessary regulatory approvals and subject to the terms of the Agreement and Plan of Merger, Astoria Financial will merge with and into the Company, and Astoria Bank will merge with and into the Community Bank. Basis of Presentation The following is a description of the significant accounting and reporting policies that the Company and its wholly-owned subsidiaries follow in preparing and presenting their consolidated financial statements, which conform to U.S. generally accepted accounting principles (“GAAP”) and to general practices within the banking industry. The preparation of financial statements in conformity with GAAP requires the Company to make estimates and judgments that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Estimates that are particularly susceptible to change in the near term are used in connection with the determination of the allowances for loan losses; the valuation of mortgage servicing rights (“MSRs”); the evaluation of goodwill for impairment; the evaluation of other-than-temporary impairment (“OTTI”) on securities; and the evaluation of the need for a valuation allowance on the Company’s deferred tax assets. The accompanying consolidated financial statements include the accounts of the Company and other entities in which the Company has a controlling financial interest. All inter-company accounts and transactions are eliminated in consolidation. The Company currently has certain unconsolidated subsidiaries in the form of wholly-owned statutory business trusts, which were formed to issue guaranteed capital debentures (“capital securities”). Please see Note 7, “Borrowed Funds,” for additional information regarding these trusts. When necessary, certain reclassifications are made to prior-year amounts to conform to the current-year presentation. The presentation of long-term borrowings in the Consolidated Statements of Cash Flows for the three months ended March 31, 2015 is presented on a gross basis to conform to the presentation of long-term borrowings in the three months ended March 31, 2016. |
Computation of Earnings per Sha
Computation of Earnings per Share | 3 Months Ended |
Mar. 31, 2016 | |
Computation of Earnings per Share | Note 2. Computation of Earnings per Share Basic earnings per share (“EPS”) is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted EPS is computed using the same method as basic EPS, however, the computation reflects the potential dilution that would occur if outstanding in-the-money stock options were exercised and converted into common stock. Unvested stock-based compensation awards containing non-forfeitable rights to dividends are considered participating securities, and therefore are included in the two-class method for calculating EPS. Under the two-class method, all earnings (distributed and undistributed) are allocated to common shares and participating securities based on their respective rights to receive dividends. The Company grants restricted stock to certain employees under its stock-based compensation plans. Recipients receive cash dividends during the vesting periods of these awards, including on the unvested portion of such awards. Since these dividends are non-forfeitable, the unvested awards are considered participating securities and therefore have earnings allocated to them. The following table presents the Company’s computation of basic and diluted EPS for the periods indicated: Three Months Ended March 31, (in thousands, except share and per share amounts) 2016 2015 Net income $ 129,909 $ 119,259 Less: Dividends paid on and earnings allocated to participating securities (979 ) (872 ) Earnings applicable to common stock $ 128,930 $ 118,387 Weighted average common shares outstanding 484,605,397 441,990,338 Basic earnings per common share $ 0.27 $ 0.27 Earnings applicable to common stock $ 128,930 $ 118,387 Weighted average common shares outstanding 484,605,397 441,990,338 Potential dilutive common shares (1) — — Total shares for diluted earnings per share computation 484,605,397 441,990,338 Diluted earnings per common share and common share equivalents $ 0.27 $ 0.27 (1) At March 31, 2016, there were no stock options outstanding. Options to purchase 32,400 shares of the Company’s common stock that were outstanding as of March 31, 2015 at weighted average exercise prices of $18.15 per share were excluded from the computation of diluted EPS because their inclusion would have had an antidilutive effect. |
Reclassifications Out of Accumu
Reclassifications Out of Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2016 | |
Reclassifications Out of Accumulated Other Comprehensive Loss | Note 3. Reclassifications Out of Accumulated Other Comprehensive Loss (in thousands) For the Three Months Ended March 31, 2016 Details about Accumulated Other Amount Reclassified (1) Affected Line Item in the Consolidated Statement of Operations and Comprehensive (Loss) Income Amortization of defined benefit pension plan items: Prior-service costs $ 62 Included in the computation of net periodic (credit) expense (2) Actuarial losses (2,343 ) Included in the computation of net periodic (credit) expense (2) (2,281 ) Total before tax 945 Tax benefit (1,336 ) Amortization of defined benefit pension plan items, net of tax Total reclassifications for the period $ (1,336 ) (1) Amounts in parentheses indicate expense items. (2) Please see Note 9, “Pension and Other Post-Retirement Benefits,” for additional information. |
Securities
Securities | 3 Months Ended |
Mar. 31, 2016 | |
Securities | Note 4. Securities The following tables summarize the Company’s portfolio of securities available for sale at March 31, 2016 and December 31, 2015: March 31, 2016 (in thousands) Amortized Gross Gross Fair Value Municipal bonds $ 727 $ 73 $ — $ 800 Capital trust notes 9,448 — 2,607 6,841 Preferred stock 118,205 9,184 275 127,114 Mutual funds and common stock (1) 16,876 618 — 17,494 Total securities available for sale $ 145,256 $ 9,875 $ 2,882 $ 152,249 (1) Primarily consists of mutual funds that are Community Reinvestment Act-qualified investments. December 31, 2015 (in thousands) Amortized Gross Gross Fair Value Mortgage-Related Securities: GSE certificates (1) $ 53,820 $ 33 $ 1 $ 53,852 Other Securities: Municipal bonds $ 725 $ 70 $ — $ 795 Capital trust notes 9,444 — 2,480 6,964 Preferred stock 118,205 7,415 248 125,372 Common stock 16,877 470 75 17,272 Total other securities $ 145,251 $ 7,955 $ 2,803 $ 150,403 Total securities available for sale $ 199,071 $ 7,988 $ 2,804 $ 204,255 (1) Government-sponsored enterprise. The following tables summarize the Company’s portfolio of securities held to maturity at March 31, 2016 and December 31, 2015: March 31, 2016 (in thousands) Amortized Carrying Gross Gross Fair Value Mortgage-Related Securities: GSE certificates $ 2,256,996 $ 2,256,996 $ 140,529 $ 54 $ 2,397,471 GSE CMOs (1) 1,229,105 1,229,105 76,401 — 1,305,506 Total mortgage-related securities $ 3,486,101 $ 3,486,101 $ 216,930 $ 54 $ 3,702,977 Other Securities: GSE debentures $ 368,784 $ 368,784 $ 19,461 $ — $ 388,245 Municipal bonds 74,419 74,419 1,661 — 76,080 Corporate bonds 73,871 73,871 11,049 — 84,920 Capital trust notes 74,262 65,575 3,058 16,694 51,939 Total other securities $ 591,336 $ 582,649 $ 35,229 $ 16,694 $ 601,184 Total securities held to maturity (2) $ 4,077,437 $ 4,068,750 $ 252,159 $ 16,748 $ 4,304,161 (1) Collateralized mortgage obligations. (2) Held-to-maturity securities are reported at a carrying amount equal to amortized cost less the non-credit portion of OTTI recorded in Accumulated Other Comprehensive Loss (“AOCL”). At March 31, 2016, the non-credit portion of OTTI recorded in AOCL was $8.7 million, pre-tax. December 31, 2015 (in thousands) Amortized Carrying Gross Gross Fair Value Mortgage-Related Securities: GSE certificates $ 2,269,828 $ 2,269,828 $ 76,827 $ 4,722 $ 2,341,933 GSE CMOs (1) 1,325,033 1,325,033 53,236 57 1,378,212 Total mortgage-related securities $ 3,594,861 $ 3,594,861 $ 130,063 $ 4,779 $ 3,720,145 Other Securities: GSE debentures $ 2,159,856 $ 2,159,856 $ 23,892 $ 7,568 $ 2,176,180 Municipal bonds 75,317 75,317 262 1,084 74,495 Corporate bonds 73,756 73,756 10,503 — 84,259 Capital trust notes 74,317 65,600 3,750 15,900 53,450 Total other securities $ 2,383,246 $ 2,374,529 $ 38,407 $ 24,552 $ 2,388,384 Total securities held to maturity (2) $ 5,978,107 $ 5,969,390 $ 168,470 $ 29,331 $ 6,108,529 (1) Collateralized mortgage obligations. (2) Held-to-maturity securities are reported at a carrying amount equal to amortized cost less the non-credit portion of OTTI recorded in AOCL. At December 31, 2015, the non-credit portion of OTTI recorded in AOCL was $8.7 million, pre-tax. At March 31, 2016 and December 31, 2015, respectively, the Company had $551.2 million and $664.0 million of Federal Home Loan Bank of New York (“FHLB-NY”) stock, at cost. In order to have access to the funding provided by the FHLB-NY, the Company is required to maintain an investment in FHLB-NY stock. The following table summarizes the gross proceeds and gross realized gains from the sale of available-for-sale securities during the three months ended March 31, 2016 and 2015: For the Three Months Ended March 31, (in thousands) 2016 2015 Gross proceeds $ 104,663 $ 135,211 Gross realized gains 163 211 There were no gross realized losses from the sale of available-for-sale securities during the three months ended March 31, 2016 or 2015. In the following table, the beginning balance represents the credit loss component for debt securities on which OTTI occurred prior to January 1, 2016. For credit-impaired debt securities, OTTI recognized in earnings after that date is presented as an addition in two components, based upon whether the current period is the first time a debt security was credit-impaired (initial credit impairment) or is not the first time a debt security was credit-impaired (subsequent credit impairment). (in thousands) For the Three Months Ended March 31, 2016 Beginning credit loss amount as of January 1, 2016 $ 198,766 Add: Initial other-than-temporary credit losses — Subsequent other-than-temporary credit losses — Amount previously recognized in AOCL — Less: Realized losses for securities sold — Securities intended or required to be sold — Increase in expected cash flows on debt securities — Ending credit loss amount as of March 31, 2016 $ 198,766 The following table summarizes the carrying amounts and estimated fair values of held-to-maturity mortgage-backed securities and debt securities, and the amortized costs and estimated fair values of available-for-sale securities, at March 31, 2016, by contractual maturity. At March 31, 2016 (dollars in thousands) Mortgage- Average U.S. Treasury Average State, County, Average (1) Other Debt (2) Average Fair Value Held-to-Maturity Securities: Due within one year $ — — % $ — — % $ 327 2.96 % $ — — % $ 328 Due from one to five years 358,897 3.74 59,792 4.17 — — — — 452,138 Due from five to ten years 2,709,236 3.23 308,992 3.14 — — 64,211 4.74 3,279,755 Due after ten years 417,968 2.93 — — 74,092 2.89 75,235 5.14 571,940 Total securities held to maturity $ 3,486,101 3.25 % $ 368,784 3.31 % $ 74,419 2.89 % $ 139,446 4.96 % $ 4,304,161 Available-for-Sale Securities: (3) Due within one year $ — — % $ — — % $ 149 6.39 % $ — — % $ 154 Due from one to five years — — — — 578 6.56 — — 646 Due from five to ten years — — — — — — — — — Due after ten years — — — — — — 9,448 4.46 6,841 Total securities available for sale $ — — % $ — — % $ 727 6.52 % $ 9,448 4.46 % $ 7,641 (1) Not presented on a tax-equivalent basis. (2) Includes corporate bonds and capital trust notes (3) As equity securities have no contractual maturity, they have been excluded from this table. The following table presents held-to-maturity and available-for-sale securities having a continuous unrealized loss position for less than twelve months and for twelve months or longer as of March 31, 2016: At March 31, 2016 Less than Twelve Months Twelve Months or Longer Total (in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Temporarily Impaired Held-to-Maturity Securities: GSE certificates $ 7,769 $ 14 $ 5,069 $ 40 $ 12,838 $ 54 GSE CMOs — — — — — — Municipal bonds — — — — — — Capital trust notes 24,753 247 19,770 16,447 44,523 16,694 Total temporarily impaired held-to-maturity securities $ 32,522 $ 261 $ 24,839 $ 16,487 $ 57,361 $ 16,748 Temporarily Impaired Available-for-Sale Securities: Capital trust notes 1,980 20 4,861 2,587 6,841 2,607 Equity securities 15,017 275 — — 15,017 275 Total temporarily impaired available-for-sale securities $ 16,997 $ 295 $ 4,861 $ 2,587 $ 21,858 $ 2,882 The following table presents held-to-maturity and available-for-sale securities having a continuous unrealized loss position for less than twelve months and for twelve months or longer as of December 31, 2015: At December 31, 2015 Less than Twelve Months Twelve Months or Longer Total (in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Temporarily Impaired Held-to-Maturity Securities: GSE debentures $ 547,484 $ 728 $ 1,176,949 $ 6,840 $ 1,724,433 $ 7,568 GSE certificates 299,019 4,608 3,899 114 302,918 4,722 GSE CMOs 9,943 57 — — 9,943 57 Municipal bonds 42,083 1,084 — — 42,083 1,084 Capital trust notes 24,601 399 20,710 15,501 45,311 15,900 Total temporarily impaired held-to-maturity securities $ 923,130 $ 6,876 $ 1,201,558 $ 22,455 $ 2,124,688 $ 29,331 Temporarily Impaired Available-for-Sale Securities: GSE certificates $ 51,959 $ 1 $ — $ — $ 51,959 $ 1 Capital trust notes 1,968 32 4,997 2,448 6,965 2,480 Equity securities 51,775 323 — — 51,775 323 Total temporarily impaired available-for-sale securities $ 105,702 $ 356 $ 4,997 $ 2,448 $ 110,699 $ 2,804 An OTTI loss on impaired securities must be fully recognized in earnings if an investor has the intent to sell the debt security, or if it is more likely than not that the investor will be required to sell the debt security before recovery of its amortized cost. However, even if an investor does not expect to sell a debt security, it must evaluate the expected cash flows to be received and determine if a credit loss has occurred. In the event that a credit loss occurs, only the amount of impairment associated with the credit loss is recognized in earnings. Amounts of impairment relating to factors other than credit losses are recorded in AOCL. At March 31, 2016, the Company had unrealized losses on certain GSE mortgage-related securities, capital trust notes, and equity securities. The unrealized losses on the Company’s GSE mortgage-related securities were primarily caused by movements in market interest rates and spread volatility, rather than credit risk. These securities are not expected to be settled at a price that is less than the amortized cost of the Company’s investment. The Company reviews quarterly financial information related to its investments in capital trust notes, as well as other information that is released by each of the issuers of such notes, to determine their continued creditworthiness. The Company continues to monitor these investments and currently estimates that the present value of expected cash flows is not less than the amortized cost of the securities. It is possible that these securities will perform worse than is currently expected, which could lead to adverse changes in cash flows from these securities and potential OTTI losses in the future. Future events that could trigger material unrecoverable declines in the fair values of the Company’s investments, and thus result in potential OTTI losses, include, but are not limited to: government intervention; deteriorating asset quality and credit metrics; significantly higher levels of default and loan loss provisions; losses in value on the underlying collateral; deteriorating credit enhancement; net operating losses; and illiquidity in the financial markets. The Company considers a decline in the fair value of equity securities to be other than temporary if the Company does not expect to recover the entire amortized cost basis of the security. The unrealized losses on the Company’s equity securities at March 31, 2016 were primarily caused by market volatility. The Company evaluated the near-term prospects of recovering the fair value of these securities, together with the severity and duration of impairment to date, and determined that they were not other than temporarily impaired. Nonetheless, it is possible that these equity securities will perform worse than is currently expected, which could lead to adverse changes in their fair value, or the failure of the securities to fully recover in value as currently forecasted by management. Either event could cause the Company to record an OTTI loss in a future period. Events that could trigger a material decline in the fair value of these securities include, but are not limited to, deterioration in the equity markets; a decline in the quality of the loan portfolio of the issuer in which the Company has invested; and the recording of higher loan loss provisions and net operating losses by such issuer. The investment securities designated as having a continuous loss position for twelve months or more at March 31, 2016 consisted of five capital trust notes and three agency mortgage-backed securities. At December 31, 2015, the investment securities designated as having a continuous loss position for twelve months or more consisted of seven agency debt securities, five capital trust notes, and two agency mortgage-backed securities. At March 31, 2016 and December 31, 2015, the combined market value of the respective securities represented unrealized losses of $19.1 million and $24.9 million. At March 31, 2016, the fair value of securities having a continuous loss position for twelve months or more was 39.1% below the collective amortized cost of $48.8 million. At December 31, 2015, the fair value of such securities was 2.0% below the collective amortized cost of $1.2 billion. |
Loans
Loans | 3 Months Ended |
Mar. 31, 2016 | |
Loans | Note 5: Loans The following table sets forth the composition of the loan portfolio at March 31, 2016 and December 31, 2015: March 31, 2016 December 31, 2015 (dollars in thousands) Amount Percent of Non-Covered Amount Percent of Non-Covered Loans Held for Investment: Mortgage Loans: Multi-family $ 26,406,585 73.04 % $ 25,971,629 72.67 % Commercial real estate 7,676,793 21.23 7,857,204 21.98 Acquisition, development, and construction 344,645 0.95 311,676 0.87 One-to-four family 186,033 0.52 116,841 0.33 Total mortgage loans held for investment $ 34,614,056 95.74 $ 34,257,350 95.85 Other Loans: Commercial and industrial (1) 1,140,835 3.16 1,085,529 3.04 Lease financing, net of unearned income of $43,964 and $43,553, respectively 369,674 1.02 365,027 1.02 Total commercial and industrial loans 1,510,509 4.18 1,450,556 4.06 Purchased credit-impaired loans 6,474 0.02 8,344 0.02 Other 22,629 0.06 24,239 0.07 Total other loans held for investment 1,539,612 4.26 1,483,139 4.15 Total non-covered loans held for investment $ 36,153,668 100.00 % $ 35,740,489 100.00 % Net deferred loan origination costs 22,214 22,715 Allowance for losses on non-covered loans (150,778 ) (147,124 ) Non-covered loans held for investment, net $ 36,025,104 $ 35,616,080 Covered loans 1,986,054 2,060,089 Allowance for losses on covered loans (28,498 ) (31,395 ) Covered loans, net $ 1,957,556 $ 2,028,694 Loans held for sale 471,276 367,221 Total loans, net $ 38,453,936 $ 38,011,995 (1) Includes specialty finance loans of $895.9 million and $880.7 million and other C&I loans of $614.7 million and $569.9 million, respectively, at March 31, 2016 and December 31, 2015. Non-Covered Loans Non-Covered Loans Held for Investment The majority of the loans the Company originates for investment are multi-family loans, most of which are collateralized by non-luxury apartment buildings in New York City that are rent-regulated and feature below-market rents. In addition, the Company originates commercial real estate (“CRE”) loans, most of which are collateralized by income-producing properties such as office buildings, retail centers, mixed-use buildings, and multi-tenanted light industrial properties that are located in New York City and on Long Island. The Company also originates acquisition, development, and construction (“ADC”) loans, and commercial and industrial (“C&I”) loans, for investment. ADC loans are primarily originated for multi-family and residential tract projects in New York City and on Long Island. C&I loans consist of asset-based loans, equipment loans and leases, and dealer floor-plan loans (together, “specialty finance loans and leases”) that generally are made to large corporate obligors, many of which are publicly traded, carry investment grade or near-investment grade ratings, and participate in stable industries nationwide; and “other” C&I loans that primarily are made to small and mid-size businesses in Metro New York. “Other” C&I loans are typically made for working capital, business expansion, and the purchase of machinery and equipment. The repayment of multi-family and CRE loans generally depends on the income produced by the underlying properties which, in turn, depends on their successful operation and management. To mitigate the potential for credit losses, the Company underwrites its loans in accordance with credit standards it considers to be prudent, looking first at the consistency of the cash flows being produced by the underlying property. In addition, multi-family buildings and CRE properties are inspected as a prerequisite to approval, and independent appraisers, whose appraisals are carefully reviewed by the Company’s in-house appraisers, perform appraisals on the collateral properties. In many cases, a second independent appraisal review is performed. To further manage its credit risk, the Company’s lending policies limit the amount of credit granted to any one borrower and typically require conservative debt service coverage ratios and loan-to-value ratios. Nonetheless, the ability of the Company’s borrowers to repay these loans may be impacted by adverse conditions in the local real estate market and the local economy. Accordingly, there can be no assurance that its underwriting policies will protect the Company from credit-related losses or delinquencies. ADC loans typically involve a higher degree of credit risk than loans secured by improved or owner-occupied real estate. Accordingly, borrowers are required to provide a guarantee of repayment and completion, and loan proceeds are disbursed as construction progresses, as certified by in-house or third-party engineers. The Company seeks to minimize the credit risk on ADC loans by maintaining conservative lending policies and rigorous underwriting standards. However, if the estimate of value proves to be inaccurate, the cost of completion is greater than expected, or the length of time to complete and/or sell or lease the collateral property is greater than anticipated, the property could have a value upon completion that is insufficient to assure full repayment of the loan. This could have a material adverse effect on the quality of the ADC loan portfolio, and could result in losses or delinquencies. To minimize the risk involved in specialty finance lending and leasing, the Company participates in syndicated loans that are brought to it, and equipment loans and leases that are assigned to it, by a select group of nationally recognized sources who have had long-term relationships with its experienced lending officers. Each of these credits is secured with a perfected first security interest or outright ownership in the underlying collateral, and structured as senior debt or as a non-cancelable lease. To further minimize the risk involved in specialty finance lending and leasing, each transaction is re-underwritten. In addition, outside counsel is retained to conduct a further review of the underlying documentation. To minimize the risks involved in other C&I lending, the Company underwrites such loans on the basis of the cash flows produced by the business; requires that such loans be collateralized by various business assets, including inventory, equipment, and accounts receivable, among others; and requires personal guarantees. However, the capacity of a borrower to repay such a C&I loan is substantially dependent on the degree to which the business is successful. In addition, the collateral underlying such loans may depreciate over time, may not be conducive to appraisal, or may fluctuate in value, based upon the results of operations of the business. Included in non-covered loans held for investment at March 31, 2016 and December 31, 2015 were loans to executive officers, directors, and their related interests and parties of $92.4 million and $105.6 million, respectively. There were no loans to principal shareholders at either of those dates. Non-covered purchased credit-impaired (“PCI”) loans, which had a carrying value of $6.5 million and an unpaid principal balance of $8.1 million at March 31, 2016, are loans that had been covered under an FDIC loss sharing agreement that expired in March 2015 and that now are included in non-covered loans. Such loans continue to be accounted for under Accounting Standards Codification (“ASC”) 310-30 and are initially measured at fair value, which includes estimated future credit losses expected to be incurred over the lives of the loans. Under ASC 310-30, purchasers are permitted to aggregate acquired loans into one or more pools, provided that the loans have common risk characteristics. A pool is then accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows. Loans Held for Sale The Community Bank’s mortgage banking division originates, aggregates, and services one-to-four family loans. Community banks, credit unions, mortgage companies, and mortgage brokers use its proprietary web-accessible mortgage banking platform to originate and close one-to-four family loans throughout the U.S. These loans are generally sold to GSEs, servicing retained. To a much lesser extent, the Community Bank uses its mortgage banking platform to originate jumbo loans which it typically sells to other financial institutions. Such loans have not represented, nor are they expected to represent, a material portion of the held-for-sale loans originated by the Community Bank. In addition, the Community Bank services mortgage loans for various third parties, primarily including GSEs. Asset Quality 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, 2016: (in thousands) Loans 30-89 Days Non- Accrual (1) Loans 90 Days or More Total Past Due Current Total Loans Multi-family $ 760 $ 15,900 $ — $ 16,660 $ 26,389,925 $ 26,406,585 Commercial real estate — 11,863 — 11,863 7,664,930 7,676,793 One-to-four family 380 11,172 — 11,552 174,481 186,033 Acquisition, development, and construction — — — — 344,645 344,645 Commercial and industrial (2) 1,880 8,940 — 10,820 1,499,689 1,510,509 Other 165 1,358 — 1,523 21,106 22,629 Total $ 3,185 $ 49,233 $ — $ 52,418 $ 36,094,776 $ 36,147,194 (1) Excludes $954,000 of non-covered PCI loans that were 90 days or more past due. (2) Includes lease financing receivables, all of which were current. The following table presents information regarding the quality of the Company’s non-covered loans held for investment at December 31, 2015: (in thousands) Loans 30-89 Days Non- Accrual (1) Loans 90 Days or More Total Past Due Current Total Loans Multi-family $ 4,818 $ 13,904 $ — $ 18,722 $ 25,952,907 $ 25,971,629 Commercial real estate 178 14,920 — 15,098 7,842,106 7,857,204 One-to-four family 1,117 12,259 — 13,376 103,465 116,841 Acquisition, development, and construction — 27 — 27 311,649 311,676 Commercial and industrial (2) — 4,473 — 4,473 1,446,083 1,450,556 Other 492 1,242 — 1,734 22,505 24,239 Total $ 6,605 $ 46,825 $ — $ 53,430 $ 35,678,715 $ 35,732,145 (1) Excludes $969,000 of non-covered PCI loans that were 90 days or more past due. (2) Includes lease financing receivables, all of which were current. 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, 2016: (in thousands) Multi- Family Commercial One-to- Four Acquisition, Total Commercial (1) Other Total Other Credit Quality Indicator: Pass $ 26,371,966 $ 7,635,582 $ 174,862 $ 343,835 $ 34,526,245 $ 1,483,734 $ 21,271 $ 1,505,005 Special mention 5,992 30,058 — 810 36,860 1,632 — 1,632 Substandard 28,627 11,153 11,171 — 50,951 25,143 1,358 26,501 Doubtful — — — — — — — — Total $ 26,406,585 $ 7,676,793 $ 186,033 $ 344,645 $ 34,614,056 $ 1,510,509 $ 22,629 $ 1,533,138 (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 by credit quality indicator at December 31, 2015: (in thousands) Multi- Family Commercial One-to- Four Acquisition, Total Commercial (1) Other Total Other Credit Quality Indicator: Pass $ 25,936,423 $ 7,839,127 $ 104,582 $ 309,039 $ 34,189,171 $ 1,433,778 $ 22,996 $ 1,456,774 Special mention 6,305 3,883 — — 10,188 11,771 — 11,771 Substandard 28,901 14,194 12,259 2,637 57,991 5,007 1,243 6,250 Doubtful — — — — — — — — Total $ 25,971,629 $ 7,857,204 $ 116,841 $ 311,676 $ 34,257,350 $ 1,450,556 $ 24,239 $ 1,474,795 (1) Includes lease financing receivables, all of which were classified as “pass.” The preceding classifications are the most current ones available and generally have been updated within the last twelve months. In addition, they follow regulatory guidelines and can generally be described as follows: pass loans are of satisfactory quality; special mention loans have a potential weakness or risk that may result in the deterioration of future repayment; substandard loans are inadequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged (these loans have a well-defined weakness and there is a distinct possibility that the Company will sustain some loss); and doubtful loans, based on existing circumstances, have weaknesses that make collection or liquidation in full highly questionable and improbable. In addition, one-to-four family loans are classified based on the duration of the delinquency. Troubled Debt Restructurings The Company is required to account for certain held-for-investment loan modifications and restructurings as troubled debt restructurings (“TDRs”). In general, a modification or restructuring of a loan constitutes a TDR if the Company grants a concession to a borrower experiencing financial difficulty. A loan modified as a TDR generally is placed on non-accrual status until the Company determines that future collection of principal and interest is reasonably assured, which requires, among other things, that the borrower demonstrate performance according to the restructured terms for a period of at least six consecutive months. In an effort to proactively manage delinquent loans, the Company has selectively extended to certain borrowers concessions such as rate reductions, extension of maturity dates, and forbearance agreements. As of March 31, 2016, loans on which concessions were made with respect to rate reductions and/or extension of maturity dates amounted to $17.0 million; loans on which forbearance agreements were reached amounted to $2.9 million. The following table presents information regarding the Company’s TDRs as of March 31, 2016 and December 31, 2015: March 31, 2016 December 31, 2015 (in thousands) Accruing Non-Accrual Total Accruing Non-Accrual Total Loan Category: Multi-family $ 2,008 $ 10,986 $ 12,994 $ 2,017 $ 635 $ 2,652 Commercial real estate — 2,558 2,558 115 6,255 6,370 One-to-four family — 1,512 1,512 — 987 987 Acquisition, development, and construction — — — — 27 27 Commercial and industrial 624 1,959 2,583 627 1,279 1,906 Other — 211 211 — 213 213 Total $ 2,632 $ 17,226 $ 19,858 $ 2,759 $ 9,396 $ 12,155 The eligibility of a borrower for work-out concessions of any nature depends upon the facts and circumstances of each transaction, which may change from period to period, and involves judgment by Company personnel regarding the likelihood that the concession will result in the maximum recovery for the Company. The financial effects of the Company’s TDRs for the three months ended March 31, 2016 and the twelve months ended December 31, 2015 are summarized as follows: For the Three Months Ended March 31, 2016 Weighted Average Interest Rate (dollars in thousands) Number Pre- Post- Charge- Capitalized Loan Category: Multi-family 1 4.63 % 4.00 % $ — $ — One-to-four family 2 3.52 3.29 — 4 Commercial and industrial 1 3.30 3.10 47 — Total 4 $ 47 $ 4 There were no financial effects of the Company’s TDRs in the three months ended March 31, 2015, as there were no new TDRs arranged during the quarter. The Company does not consider a payment to be in default when the loan is in forbearance, or otherwise granted a delay of payment, when the agreement to forebear or allow a delay of payment is part of a modification. Subsequent to the modification, the loan is not considered to be in default until payment is contractually past due in accordance with the modified terms. However, the Company does consider a loan with multiple modifications or forbearance periods to be in default, and would also consider a loan to be in default if it were in bankruptcy or were partially charged off subsequent to modification. Covered Loans The following table presents the carrying value of covered loans acquired in the AmTrust and Desert Hills acquisitions as of March 31, 2016: (dollars in thousands) Amount Percent of Loan Category: One-to-four family $ 1,853,643 93.3 % Other loans 132,411 6.7 Total covered loans $ 1,986,054 100.0 % The Company refers to certain loans acquired in the AmTrust and Desert Hills transactions as “covered loans” because the Company is being reimbursed for a substantial portion of losses on these loans under the terms of the FDIC loss sharing agreements. Covered loans are accounted for under ASC 310-30 and are initially measured at fair value, which includes estimated future credit losses expected to be incurred over the lives of the loans. Under ASC 310-30, purchasers are permitted to aggregate acquired loans into one or more pools, provided that the loans have common risk characteristics. A pool is then accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows. At March 31, 2016 and December 31, 2015, the unpaid principal balance of covered loans was $2.4 billion and $2.5 billion, respectively. The carrying value of such loans was $2.0 billion and $2.1 billion, respectively, at the corresponding dates. At the respective acquisition dates, the Company estimated the fair values of the AmTrust and Desert Hills loan portfolios, which represented the expected cash flows from the portfolios, discounted at market-based rates. In estimating such fair values, the Company: (a) calculated the contractual amount and timing of undiscounted principal and interest payments (the “undiscounted contractual cash flows”); and (b) estimated the expected amount and timing of undiscounted principal and interest payments (the “undiscounted expected cash flows”). The amount by which the undiscounted expected cash flows exceed the estimated fair value (the “accretable yield”) is accreted into interest income over the lives of the loans. The amount by which the undiscounted contractual cash flows exceed the undiscounted expected cash flows is referred to as the “non-accretable difference.” The non-accretable difference represents an estimate of the credit risk in the loan portfolios at the respective acquisition dates. The accretable yield is affected by changes in interest rate indices for variable rate loans, changes in prepayment assumptions, and changes in expected principal and interest payments over the estimated lives of the loans. Changes in interest rate indices for variable rate loans increase or decrease the amount of interest income expected to be collected, depending on the direction of interest rates. Prepayments affect the estimated lives of covered loans and could change the amount of interest income and principal expected to be collected. Changes in expected principal and interest payments over the estimated lives of covered loans are driven by the credit outlook and by actions that may be taken with borrowers. On a quarterly basis, the Company evaluates the estimates of the cash flows it expects to collect. Expected future cash flows from interest payments are based on variable rates at the time of the quarterly evaluation. Estimates of expected cash flows that are impacted by changes in interest rate indices for variable rate loans and prepayment assumptions are treated as prospective yield adjustments and included in interest income. In the three months ended March 31, 2016, changes in the accretable yield for covered loans were as follows: (in thousands) Accretable Yield Balance at beginning of period $ 803,145 Reclassification from non-accretable difference 25,261 Accretion (33,320 ) Balance at end of period $ 795,086 In the preceding table, the line item “Reclassification from non-accretable difference” includes changes in cash flows that the Company does not expect to collect due to changes in prepayment assumptions, changes in interest rates on variable rate loans, and changes in loss assumptions. As of the Company’s most recent quarterly evaluation, prepayment assumptions decreased, which resulted in an increase in future expected interest cash flows and, consequently, an increase in the accretable yield. The effect of this increase was augmented by a slight improvement in the underlying credit assumptions coupled with coupon rates on variable rate loans resetting slightly higher, which also resulted in an increase in future expected interest cash flows and, consequently, an increase in the accretable yield. Reflecting the foreclosure of certain loans acquired in the AmTrust and Desert Hills acquisitions, the Company owns certain other real estate owned (“OREO”) that is covered under the Company’s loss sharing agreements with the FDIC (“covered OREO”). Covered OREO was initially recorded at its estimated fair value on the respective dates of acquisition, based on independent appraisals, less the estimated selling costs. Any subsequent write-downs due to declines in fair value have been charged to non-interest expense, and have been partially offset by loss reimbursements under the FDIC loss sharing agreements. Any recoveries of previous write-downs have been credited to non-interest expense and partially offset by the portion of the recovery that was due to the FDIC. The FDIC loss share receivable represents the present value of the estimated losses to be reimbursed by the FDIC. The estimated losses were based on the same cash flow estimates used in determining the fair value of the covered loans. The FDIC loss share receivable is reduced as losses on covered loans are recognized and as loss sharing payments are received from the FDIC. Realized losses in excess of acquisition-date estimates result in an increase in the FDIC loss share receivable. Conversely, if realized losses are lower than the acquisition-date estimates, the FDIC loss share receivable is reduced by amortization to interest income. The following table presents information regarding the Company’s covered loans that were 90 days or more past due at March 31, 2016 and December 31, 2015: (in thousands) March 31, 2016 December 31, 2015 Covered Loans 90 Days or More Past Due: One-to-four family $ 131,876 $ 130,626 Other loans 6,859 6,556 Total covered loans 90 days or more past due $ 138,735 $ 137,182 The following table presents information regarding the Company’s covered loans that were 30 to 89 days past due at March 31, 2016 and December 31, 2015: (in thousands) March 31, 2016 December 31, 2015 Covered Loans 30-89 Days Past Due: One-to-four family $ 26,849 $ 30,455 Other loans 1,158 2,369 Total covered loans 30-89 days past due $ 28,007 $ 32,824 At March 31, 2016, the Company had $28.0 million of covered loans that were 30 to 89 days past due, and covered loans of $138.7 million that were 90 days or more past due but considered to be performing due to the application of the yield accretion method under ASC 310-30. The remaining portion of the Company’s covered loan portfolio totaled $1.8 billion at March 31, 2016 and was considered current at that date. Loans that may have been classified as non-performing loans by AmTrust or Desert Hills were no longer classified as non-performing by the Company because, at the respective dates of acquisition, the Company believed that it would fully collect the new carrying value of these loans. The new carrying value represents the contractual balance, reduced by the portion that is expected to be uncollectible (i.e., the non-accretable difference) and by an accretable yield (discount) that is recognized as interest income. It is important to note that management’s judgment is required in reclassifying loans subject to ASC 310-30 as performing loans, and such judgment is dependent on having a reasonable expectation about the timing and amount of the cash flows to be collected, even if the loan is contractually past due. The primary credit quality indicator for covered loans is the expectation of underlying cash flows. In the three months ended March 31, 2016, the Company recorded recoveries of losses on covered loans of $2.9 million. The recoveries were largely due to an increase in expected cash flows in the acquired portfolios of one-to-four family and home equity loans, and were partly offset by FDIC indemnification expense of $2.3 million that was recorded in “Non-interest income”. The Company recorded a provision for losses on covered loans of $877,000 in the three months ended March 31, 2015. The provision was largely due to credit deterioration in the acquired portfolios of one-to-four family and home equity loans, and was partly offset by FDIC indemnification income of $702,000 that was recorded in “Non-interest income” in the corresponding period. |
Allowances for Loan Losses
Allowances for Loan Losses | 3 Months Ended |
Mar. 31, 2016 | |
Allowances for Loan Losses | Note 6. Allowances for Loan Losses The following tables provide additional information regarding the Company’s allowances for losses on non-covered and covered loans, based upon the method of evaluating loan impairment: (in thousands) Mortgage Other Total Allowances for Loan Losses at March 31, 2016: Loans individually evaluated for impairment $ — $ — $ — Loans collectively evaluated for impairment 124,639 24,422 149,061 Acquired loans with deteriorated credit quality 13,425 16,790 30,215 Total $ 138,064 $ 41,212 $ 179,276 (in thousands) Mortgage Other Total Allowances for Loan Losses at December 31, 2015: Loans individually evaluated for impairment $ — $ — $ — Loans collectively evaluated for impairment 122,712 22,484 145,196 Acquired loans with deteriorated credit quality 14,583 18,740 33,323 Total $ 137,295 $ 41,224 $ 178,519 The following tables provide additional information regarding the methods used to evaluate the Company’s loan portfolio for impairment: (in thousands) Mortgage Other Total Loans Receivable at March 31, 2016: Loans individually evaluated for impairment $ 27,063 $ 9,071 $ 36,134 Loans collectively evaluated for impairment 34,586,993 1,524,067 36,111,060 Acquired loans with deteriorated credit quality 1,859,486 133,042 1,992,528 Total $ 36,473,542 $ 1,666,180 $ 38,139,722 (in thousands) Mortgage Other Total Loans Receivable at December 31, 2015: Loans individually evaluated for impairment $ 47,480 $ 4,474 $ 51,954 Loans collectively evaluated for impairment 34,209,870 1,470,321 35,680,191 Acquired loans with deteriorated credit quality 1,924,255 144,178 2,068,433 Total $ 36,181,605 $ 1,618,973 $ 37,800,578 Allowance for Losses on Non-Covered Loans The following table summarizes activity in the allowance for losses on non-covered loans for the three months ended March 31, 2016 and 2015: March 31, 2016 2015 (in thousands) Mortgage Other Total Mortgage Other Total Balance, beginning of period $ 124,478 $ 22,646 $ 147,124 $ 122,616 $ 17,241 $ 139,857 Charge-offs (46 ) (148 ) (194 ) (485 ) (313 ) (798 ) Recoveries 879 248 1,127 1,400 163 1,563 Transfer from the allowance for losses on covered loans (1) — — — 2,250 166 2,416 Provision for (recovery of) non-covered loan losses 874 1,847 2,721 (6,603 ) 5,733 (870 ) Balance, end of period $ 126,185 $ 24,593 $ 150,778 $ 119,178 $ 22,990 $ 142,168 (1) Represents the allowance associated with $14.2 million of loans acquired in the Desert Hills transaction that were transferred from covered loans to non-covered loans upon expiration of the related FDIC loss sharing agreement. Please see “Critical Accounting Policies” for additional information regarding the Company’s allowance for losses on non-covered loans. The following tables present additional information about the Company’s impaired non-covered loans at March 31, 2016 and December 31, 2015: (in thousands) Recorded Unpaid Related Average Interest Impaired loans with no related allowance: Multi-family $ 13,002 $ 15,054 $ — $ 20,233 $ 208 Commercial real estate 11,203 16,899 — 12,599 54 One-to-four family 2,859 3,373 — 3,122 23 Acquisition, development, and construction — — — 1,318 — Other 9,070 9,475 — 6,772 50 Total impaired loans $ 36,134 $ 44,801 $ — $ 44,044 $ 335 (in thousands) Recorded Unpaid Related Average Interest Impaired loans with no related allowance: Multi-family $ 27,464 $ 29,379 $ — $ 30,965 $ 1,320 Commercial real estate 13,995 15,480 — 25,066 383 One-to-four family 3,384 8,929 — 2,302 75 Acquisition, development, and construction 2,637 3,035 — 1,086 148 Other 4,474 4,794 — 8,386 118 Total impaired loans $ 51,954 $ 61,617 $ — $ 67,805 $ 2,044 As indicated in the preceding tables, the Company had no impaired non-covered loans with an allowance recorded at March 31, 2016 or December 31, 2015. Allowance for Losses on Covered Loans Covered loans are reported exclusive of the FDIC loss share receivable. The covered loans acquired in the AmTrust and Desert Hills acquisitions are, and will continue to be, reviewed for collectability based on the expectations of cash flows from these loans. Covered loans have been aggregated into pools of loans with common characteristics. In determining the allowance for losses on covered loans, the Company periodically performs an analysis to estimate the expected cash flows for each of the pools of loans. The Company records a provision for (recovery of) losses on covered loans to the extent that the expected cash flows from a loan pool have decreased or increased since the acquisition date. Accordingly, if there is a decrease in expected cash flows due to an increase in estimated credit losses (as compared to the estimates made at the respective acquisition dates), the decrease in the present value of expected cash flows is recorded as a provision for covered loan losses charged to earnings, and an allowance for covered loan losses is established. A related credit to non-interest income and an increase in the FDIC loss share receivable is recognized at the same time, and measured based on the applicable loss sharing agreement percentage. If there is an increase in expected cash flows due to a decrease in estimated credit losses (as compared to the estimates made at the respective acquisition dates), the increase in the present value of expected cash flows is recorded as a recovery of the prior-period impairment charged to earnings, and the allowance for covered loan losses is reduced. A related debit to non-interest income and a decrease in the FDIC loss share receivable is recognized at the same time, and measured based on the applicable loss sharing agreement percentage. The following table summarizes activity in the allowance for losses on covered loans for the three months ended March 31, 2016 and 2015: March 31, (in thousands) 2016 2015 Balance, beginning of period $ 31,395 $ 45,481 (Recovery of) provision for losses on covered loans (2,897 ) 877 Transfer to the allowance for losses on non-covered loans (1) — (2,416 ) Balance, end of period $ 28,498 $ 43,942 (1) Represents the allowance associated with $14.2 million of loans acquired in the Desert Hills transaction that were transferred from covered loans to non-covered loans upon expiration of the related FDIC loss sharing agreement. |
Borrowed Funds
Borrowed Funds | 3 Months Ended |
Mar. 31, 2016 | |
Borrowed Funds | Note 7. Borrowed Funds The following table summarizes the Company’s borrowed funds at March 31, 2016 and December 31, 2015: (in thousands) March 31, 2016 December 31, Wholesale borrowings: FHLB advances $ 10,933,100 $ 13,463,800 Repurchase agreements 1,500,000 1,500,000 Fed funds purchased 553,000 426,000 Total wholesale borrowings $ 12,986,100 $ 15,389,800 Junior subordinated debentures 358,672 358,605 Total borrowed funds $ 13,344,772 $ 15,748,405 The following table summarizes the Company’s repurchase agreements accounted for as secured borrowings at March 31, 2016: Remaining Contractual Maturity of the Agreements (in thousands) Overnight and Up to 30–90 Days Greater than GSE debentures and mortgage-related securities $ — $ — $ — $ 1,500,000 At March 31, 2016 and December 31, 2015, the Company had $358.7 million and $358.6 million, respectively, of outstanding junior subordinated deferrable interest debentures (“junior subordinated debentures”) held by statutory business trusts (the “Trusts”) that issued guaranteed capital securities. The Trusts are accounted for as unconsolidated subsidiaries in accordance with GAAP. The proceeds of each issuance were invested in a series of junior subordinated debentures of the Company and the underlying assets of each statutory business trust are the relevant debentures. The Company has fully and unconditionally guaranteed the obligations under each trust’s capital securities to the extent set forth in a guarantee by the Company to each trust. The Trusts’ capital securities are each subject to mandatory redemption, in whole or in part, upon repayment of the debentures at their stated maturity or earlier redemption. The following junior subordinated debentures were outstanding at March 31, 2016: Issuer Interest Rate of Capital Securities and Debentures Junior Subordinated Debentures Amount Outstanding Capital Securities Amount Outstanding Date of Original Issue Stated Maturity First Optional Redemption Date (dollars in thousands) New York Community Capital Trust V (BONUSES SM 6.000 % $ 144,746 $ 138,395 Nov. 4, 2002 Nov. 1, 2051 Nov. 4, 2007 (1) New York Community Capital Trust X 2.234 123,712 120,000 Dec. 14, 2006 Dec. 15, 2036 Dec. 15, 2011 (2) PennFed Capital Trust III 3.884 30,928 30,000 June 2, 2003 June 15, 2033 June 15, 2008 (2) New York Community Capital Trust XI 2.279 59,286 57,500 April 16, 2007 June 30, 2037 June 30, 2012 (2) Total junior subordinated debentures $ 358,672 $ 345,895 (1) Callable subject to certain conditions as described in the prospectus filed with the U.S. Securities and Exchange Commission (the “SEC”) on November 4, 2002. (2) Callable from this date forward. |
Mortgage Servicing Rights
Mortgage Servicing Rights | 3 Months Ended |
Mar. 31, 2016 | |
Mortgage Servicing Rights | Note 8. Mortgage Servicing Rights In accordance with ASC 860-50, the Company records a separate servicing asset representing the right to service third-party loans. MSRs are initially recorded at their fair value as a component of the sale proceeds. The fair value of the MSRs are based on an analysis of discounted cash flows that incorporates estimates of (1) market servicing costs, (2) market-based estimates of ancillary servicing revenue, (3) market-based prepayment rates, and (4) market profit margins. MSRs are subsequently measured at either fair value or amortized in proportion to, and over the period of, estimated net servicing income. The Company elects one of those methods on a class basis. A class is determined based on (1) the availability of market inputs used in determining the fair value of servicing assets, and/or (2) our method for managing the risks of servicing assets. The Company had MSRs of $213.3 million and $247.7 million, respectively, at March 31, 2016 and December 31, 2015. Both period-end balances consisted of two classes of MSRs for which the Company separately managed the economic risk: residential MSRs and participation MSRs (i.e., MSRs on loans sold through participations). The total unpaid principal balance of loans serviced for others was $24.6 billion and $24.2 billion at March 31, 2016 and December 31, 2015, respectively. Residential MSRs are carried at fair value, with changes in fair value recorded as a component of non-interest income in each period. The Company uses various derivative instruments to mitigate the income statement-effect of changes in fair value due to changes in valuation inputs and assumptions regarding its residential MSRs. The effects of changes in the fair value of the derivatives are recorded in “Non-interest income” in the Consolidated Statements of Income and Comprehensive Income. MSRs do not trade in an active open market with readily observable prices. Accordingly, the Company utilizes a third-party valuation specialist to determine the fair value of its MSRs. This specialist determines fair value based on the present value of estimated future net servicing income cash flows, and incorporates assumptions that market participants would use to estimate fair value, including estimates of prepayment speeds, discount rates, default rates, refinance rates, servicing costs, escrow account earnings, contractual servicing fee income, and ancillary income. The specialist and the Company evaluate, and periodically adjust, as necessary, these underlying inputs and assumptions to reflect market conditions and changes in the assumptions that a market participant would consider in valuing MSRs. The value of residential MSRs at any given time is significantly affected by the mortgage interest rates that are then available in the marketplace; these, in turn, influence mortgage loan prepayment speeds. The rate of prepayment of residential loans serviced is the most significant estimate involved in the measurement process. Actual prepayment rates differ from those projected by management due to changes in a variety of economic factors, including prevailing interest rates and the availability of alternative financing sources to borrowers. During periods of declining interest rates, the value of residential MSRs generally declines as an increase in mortgage refinancing activity results in an increase in prepayments and a decrease in the carrying value of residential MSRs through a charge to earnings in the current period. Conversely, during periods of rising interest rates, the value of residential MSRs generally increases as mortgage refinancing activity declines and actual prepayments of the loans being serviced occurs more slowly than had been projected, resulting in increases in the carrying value of residential MSRs and servicing income than previously projected amounts. Accordingly, the residential MSRs actually realized, could differ from the amounts initially recorded. Participation MSRs are initially carried at fair value and are subsequently amortized and carried at the lower of their fair value or amortized amount. The amortization is recorded in proportion to, and over the period of, estimated net servicing income, with impairment of those servicing assets evaluated through an assessment of the fair value of those assets via a discounted cash-flow method. The net carrying value is compared to its discounted estimated future net cash flows to determine whether adjustments should be made to carrying values or amortization schedules. Impairment of participation MSRs is recognized through a valuation allowance and a charge to current-period earnings if it is considered to be temporary or through a direct write-down of the asset and a charge to current-period earnings if it is considered other than temporary. The predominant risk characteristics of the underlying loans that are used to stratify the participation MSRs for measurement purposes generally include the (1) loan origination date, (2) loan rate, (3) loan type and size, (4) loan maturity date, and (5) geographic location. Changes in the carrying value of participation MSRs due to amortization or declines in fair value (i.e., impairment), if any, are reported in “Other income” in the period during which such changes occur. In the three months ended March 31, 2016, there was no impairment related to the Company’s participation MSRs. The following table sets forth the changes in the balances of residential MSRs and participation MSRs for the periods indicated: For the Three Months Ended March 31, 2016 2015 (in thousands) Residential Participation Residential Participation Carrying value, beginning of year $ 243,389 $ 4,345 $ 227,297 $ — Additions 7,948 1,250 15,017 — Increase (decrease) in fair value: Due to changes in interest rates (24,286 ) — (11,098 ) — Due to model assumption changes (1) (8,838 ) — — — Due to loan payoffs (8,750 ) — (10,216 ) — Due to passage of time and other changes (1,376 ) — (629 ) — Amortization — (414 ) — — Carrying value, end of period $ 208,087 $ 5,181 $ 220,371 $ — (1) Represents changes in fair value driven by changes to the inputs to the valuation model related to assumed prepayment speeds. The following table presents the key assumptions used in calculating the fair value of the Company’s residential MSRs at the dates indicated: March 31, 2016 December 31, 2015 Expected Weighted Average Life 80 months 92 months Constant Prepayment Speed 9.68 % 7.35 % Discount Rate 10.02 10.01 Primary Mortgage Rate to Refinance 3.72 4.03 Cost to Service (per loan per year): Current $ 63 $ 63 30-59 days or less delinquent 213 213 60-89 days delinquent 313 313 90-119 days delinquent 413 413 120 days or more delinquent 563 563 As indicated in the preceding table, there were no changes in the assumed servicing costs over the three months ended March 31, 2016. |
Pension and Other Post-Retireme
Pension and Other Post-Retirement Benefits | 3 Months Ended |
Mar. 31, 2016 | |
Pension and Other Post-Retirement Benefits | Note 9. Pension and Other Post-Retirement Benefits The following table sets forth certain disclosures for the Company’s pension and post-retirement plans for the periods indicated: For the Three Months Ended March 31, 2016 2015 (in thousands) Pension Post-Retirement Pension Post-Retirement Components of net periodic (credit) expense: Interest cost $ 1,470 $ 160 $ 1,516 $ 175 Service cost — 1 — 1 Expected return on plan assets (3,906 ) — (4,390 ) — Amortization of prior-service costs — (62 ) — (62 ) Amortization of net actuarial loss 2,262 81 2,052 96 Net periodic (credit) expense $ (174 ) $ 180 $ (822 ) $ 210 The Company expects to contribute $1.3 million to its post-retirement plan to pay premiums and claims for the fiscal year ending December 31, 2016. The Company does not expect to make any contributions to its pension plan in 2016. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2016 | |
Stock-Based Compensation | Note 10. Stock-Based Compensation At March 31, 2016, the Company had 9,695,260 shares available for grants as options, restricted stock, or other forms of related rights under the New York Community Bancorp, Inc. 2012 Stock Incentive Plan (the “2012 Stock Incentive Plan”), which was approved by the Company’s shareholders at its Annual Meeting on June 7, 2012. Included in this amount were 1,030,673 shares that were transferred from the 2006 Stock Incentive Plan, which was approved by the Company’s shareholders at its Annual Meeting on June 7, 2006 and reapproved at its Annual Meeting on June 2, 2011. The Company granted 2,571,452 shares of restricted stock during the three months ended March 31, 2016. The shares had an average fair value of $15.23 per share on the date of grant and a vesting period of five years. Compensation and benefits expense related to the restricted stock grants is recognized on a straight-line basis over the vesting period, and totaled $8.2 million and $7.2 million, respectively, for the three months ended March 31, 2016 and 2015. The following table provides a summary of activity with regard to restricted stock awards in the three months ended March 31, 2016: For the Three Months Ended March 31, 2016 Number of Shares Weighted Average Unvested at beginning of year 6,362,117 $ 15.44 Granted 2,571,452 15.23 Vested (1,893,003 ) 15.38 Canceled (36,600 ) 15.27 Unvested at end of period 7,003,966 15.38 As of March 31, 2016, unrecognized compensation cost relating to unvested restricted stock totaled $101.3 million. This amount will be recognized over a remaining weighted average period of 3.6 years. The following table summarizes the changes that occurred during the three months ended at March 31, 2016 with regard to the Company’s outstanding stock options: For the Three Months Ended March 31, 2016 Number of Stock Weighted Average Stock options outstanding, beginning of year 2,400 $ 16.88 Exercised — — Expired/forfeited (2,400 ) 16.88 Stock options outstanding, end of period — — Options exercisable, end of period — — There were no stock options outstanding at March 31, 2016 and no options exercised during the three months ended at that date. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Measurements | Note 11. Fair Value Measurements GAAP sets forth a definition of fair value, establishes a consistent framework for measuring fair value, and requires disclosure for each major asset and liability category measured at fair value on either a recurring or non-recurring basis. GAAP also clarifies that fair value is an “exit” price, representing the amount that would be received when selling an asset, or paid when transferring a liability, in an orderly transaction between market participants. Fair value is thus a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: • Level 1 – Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2 – Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. • Level 3 – Inputs to the valuation methodology are significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants use in pricing an asset or liability. A financial instrument’s categorization within this valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The following tables present assets and liabilities that were measured at fair value on a recurring basis as of March 31, 2016 and December 31, 2015, and that were included in the Company’s Consolidated Statements of Condition at those dates: Fair Value Measurements at March 31, 2016 (in thousands) Quoted Prices Significant Significant Netting (1) Total Assets: Securities Available for Sale: Municipal bonds $ — $ 800 $ — $ — $ 800 Capital trust notes — 6,841 — — 6,841 Preferred stock 97,908 29,206 — — 127,114 Mutual funds and common stock — 17,494 — — 17,494 Total securities available for sale $ 97,908 $ 54,341 $ — $ — $ 152,249 Other Assets: Loans held for sale $ — $ 471,276 $ — $ — $ 471,276 Mortgage servicing rights — — 208,087 — 208,087 Interest rate lock commitments — — 6,689 — 6,689 Derivative assets-other (2) 6,259 4,008 — (845 ) 9,422 Liabilities: Derivative liabilities $ (78 ) $ (7,182 ) $ — $ 5,760 $ (1,500 ) (1) Includes cash collateral received from, and paid to, counterparties. (2) Includes $3.7 million to purchase Treasury options. Fair Value Measurements at December 31, 2015 (in thousands) Quoted Prices Significant Significant Netting (1) Total Assets: Mortgage-Related Securities Available for Sale: GSE certificates $ — $ 53,852 $ — $ — $ 53,852 Total mortgage-related securities $ — $ 53,852 $ — $ — $ 53,852 Other Securities Available for Sale: Municipal bonds $ — $ 795 $ — $ — $ 795 Capital trust notes — 6,964 — — 6,964 Preferred stock 96,641 28,731 — — 125,372 Mutual funds and common stock — 17,272 — — 17,272 Total other securities $ 96,641 $ 53,762 $ — $ — $ 150,403 Total securities available for sale $ 96,641 $ 107,614 $ — $ — $ 204,255 Other Assets: Loans held for sale $ — $ 367,221 $ — $ — $ 367,221 Mortgage servicing rights — — 243,389 — 243,389 Interest rate lock commitments — — 2,526 — 2,526 Derivative assets-other (2) 1,875 1,342 — (1,024 ) 2,193 Liabilities: Derivative liabilities $ (1,539 ) $ (2,783 ) $ — $ 3,986 $ (336 ) (1) Includes cash collateral received from, and paid to, counterparties. (2) Includes $1.9 million to purchase Treasury options. The Company reviews and updates the fair value hierarchy classifications for its assets on a quarterly basis. Changes from one quarter to the next that are related to the observability of inputs for a fair value measurement may result in a reclassification from one hierarchy level to another. A description of the methods and significant assumptions utilized in estimating the fair values of available-for-sale securities follows: Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities include highly liquid government securities, exchange-traded securities, and derivatives. If quoted market prices are not available for a specific security, then fair values are estimated by using pricing models. These pricing models primarily use market-based or independently sourced market parameters as inputs, including, but not limited to, yield curves, interest rates, equity or debt prices, and credit spreads. In addition to observable market information, models incorporate transaction details such as maturity and cash flow assumptions. Securities valued in this manner would generally be classified within Level 2 of the valuation hierarchy, and primarily include such instruments as mortgage-related and corporate debt securities. Periodically, the Company uses fair values supplied by independent pricing services to corroborate the fair values derived from the pricing models. In addition, the Company reviews the fair values supplied by independent pricing services, as well as their underlying pricing methodologies, for reasonableness. The Company challenges pricing service valuations that appear to be unusual or unexpected. The Company carries loans held for sale originated by its mortgage banking operation at fair value. The fair value of loans held for sale is primarily based on quoted market prices for securities backed by similar types of loans. Changes in the fair value of these assets are largely driven by changes in interest rates subsequent to loan funding, and changes in the fair value of servicing associated with the mortgage loans held for sale. Loans held for sale are classified within Level 2 of the valuation hierarchy. Mortgage servicing rights (“MSRs”) do not trade in an active open market with readily observable prices. The Company bases the fair value of its MSRs on the present value of estimated future net servicing income cash flows, utilizing a third-party valuation specialist. The specialist estimates future net servicing income cash flows with assumptions that market participants would use to estimate fair value, including estimates of prepayment speeds, discount rates, default rates, refinance rates, servicing costs, escrow account earnings, contractual servicing fee income, and ancillary income. The Company periodically adjusts the underlying inputs and assumptions to reflect market conditions and assumptions that a market participant would consider in valuing the MSR asset. MSR fair value measurements use significant unobservable inputs and, accordingly, are classified within Level 3. Exchange-traded derivatives that are valued using quoted prices are classified within Level 1 of the valuation hierarchy. The majority of the Company’s derivative positions are valued using internally developed models that use readily observable market parameters as their basis. These are parameters that are actively quoted and can be validated by external sources, including industry pricing services. Where the types of derivative products have been in existence for some time, the Company uses models that are widely accepted in the financial services industry. These models reflect the contractual terms of the derivatives, including the period to maturity, and market-based parameters such as interest rates, volatility, and the credit quality of the counterparty. Furthermore, many of these models do not contain a high level of subjectivity, as the methodologies used in the models do not require significant judgment, and inputs to the models are readily observable from actively quoted markets, as is the case for “plain vanilla” interest rate swaps and option contracts. Such instruments are generally classified within Level 2 of the valuation hierarchy. Derivatives that are valued based on models with significant unobservable market parameters, and that are normally traded less actively, have trade activity that is one-way, and/or are traded in less-developed markets, are classified within Level 3 of the valuation hierarchy. The fair values of interest rate lock commitments (“IRLCs”) for residential mortgage loans that the Company intends to sell are based on internally developed models. The key model inputs primarily include the sum of the value of the forward commitment based on the loans’ expected settlement dates and the projected values of the MSRs, loan level price adjustment factors, and historical IRLC closing ratios. The closing ratio is computed by the Company’s mortgage banking operation and is periodically reviewed by management for reasonableness. Such derivatives are classified as Level 3. While the Company believes its valuation methods are appropriate, and consistent with those of other market participants, the use of different methodologies or assumptions to determine the fair values of certain financial instruments could result in different estimates of fair values at a reporting date. Fair Value Option Loans Held for Sale The Company has elected the fair value option for its loans held for sale. The Company’s loans held for sale consist of one-to-four family mortgage loans, none of which was 90 days or more past due at March 31, 2016. Management believes that the mortgage banking business operates on a short-term cycle. Therefore, in order to reflect the most relevant valuations for the key components of this business, and to reduce timing differences in amounts recognized in earnings, the Company has elected to record loans held for sale at fair value to match the recognition of IRLCs, MSRs, and derivatives, all of which are recorded at fair value in earnings. Fair value is based on independent quoted market prices of mortgage-backed securities comprised of loans with similar features to those of the Company’s loans held for sale, where available, and adjusted as necessary for such items as servicing value, guaranty fee premiums, and credit spread adjustments. The following table reflects the difference between the fair value carrying amount of loans held for sale, for which the Company has elected the fair value option, and the unpaid principal balance: March 31, 2016 December 31, 2015 (in thousands) Fair Value Aggregate Fair Value Fair Value Aggregate Fair Value Loans held for sale $ 471,276 $ 456,339 $ 14,937 $ 367,221 $ 359,587 $ 7,634 Gains and Losses Included in Income for Assets Where the Fair Value Option Has Been Elected The assets accounted for under the fair value option are initially measured at fair value. Gains and losses from the initial measurement and subsequent changes in fair value are recognized in earnings. The following table presents the changes in fair value related to initial measurement, and the subsequent changes in fair value included in earnings, for loans held for sale and MSRs for the periods indicated: (Loss) Gain Included in Mortgage Banking Income from Changes in Fair Value (1) For the Three Months Ended March 31, (in thousands) 2016 2015 Loans held for sale $ 6,900 $ 4,369 Mortgage servicing rights (43,250 ) (21,943 ) Total loss $ (36,350 ) $ (17,574 ) (1) Does not include the effect of hedging activities, which is included in “Other non-interest income.” The Company has determined that there is no instrument-specific credit risk related to its loans held for sale, due to the short duration of such assets. Changes in Level 3 Fair Value Measurements The following tables present, for the three months ended March 31, 2016 and 2015, a roll-forward of the balance sheet amounts (including changes in fair value) for financial instruments classified in Level 3 of the valuation hierarchy: Total Realized/Unrealized Issuances Settlements Transfers Fair Value Change in Unrealized Gains/ Fair Value (Losses) Related to January 1, Income/ Comprehensive Instruments Held at (in thousands) 2016 (Loss) (Loss) Income March 31, 2016 Mortgage servicing rights $ 243,389 $ (43,250 ) $ — $ 7,948 $ — $ — $ 208,087 $ (37,093 ) Interest rate lock commitments 2,526 4,163 — — — — 6,689 6,586 Total Realized/Unrealized Issuances Settlements Transfers Fair Value Change in Unrealized Gains/ Fair Value (Losses) Related to January 1, Income/ Comprehensive Instruments Held at (in thousands) 2015 (Loss) (Loss) Income March 31, 2015 Mortgage servicing rights $ 227,297 $ (21,943 ) $ — $ 15,017 $ — $ — $ 220,371 $ (6,448 ) Interest rate lock commitments 4,397 4,465 — — — — 8,862 8,807 The Company’s policy is to recognize transfers in and out of Levels 1, 2, and 3 as of the end of the reporting period. There were no transfers in or out of Levels 1, 2, or 3 during the three months ended March 31, 2016 or 2015. For Level 3 assets and liabilities measured at fair value on a recurring basis as of March 31, 2016, the significant unobservable inputs used in the fair value measurements were as follows: (dollars in thousands) Fair Value at Mar. 31, 2016 Valuation Technique Significant Unobservable Inputs Significant Unobservable Input Value Mortgage servicing rights $ 208,087 Discounted Cash Flow Weighted Average Constant Prepayment Rate (1) 9.68 % Weighted Average Discount Rate 10.02 Interest rate lock commitments 6,689 Discounted Cash Flow Weighted Average Closing Ratio 75.99 (1) Represents annualized loan repayment rate assumptions. The significant unobservable inputs used in the fair value measurement of the Company’s MSRs are the weighted average constant prepayment rate and the weighted average discount rate. Significant increases or decreases in either of those inputs in isolation could result in significantly lower or higher fair value measurements. Although the constant prepayment rate and the discount rate are not directly interrelated, they generally move in opposite directions. The significant unobservable input used in the fair value measurement of the Company’s IRLCs is the closing ratio, which represents the percentage of loans currently in an interest rate lock position that management estimates will ultimately close. Generally, the fair value of an IRLC is positive if the prevailing interest rate is lower than the IRLC rate, and the fair value of an IRLC is negative if the prevailing interest rate is higher than the IRLC rate. Therefore, an increase in the closing ratio (i.e., a higher percentage of loans estimated to close) will result in the fair value of the IRLC increasing if in a gain position, or decreasing if in a loss position. The closing ratio is largely dependent on the stage of processing that a loan is currently in, and the change in prevailing interest rates from the time of the interest rate lock. Assets Measured at Fair Value on a Non-Recurring Basis Certain assets are measured at fair value on a non-recurring basis. Such instruments are subject to fair value adjustments under certain circumstances (e.g., when there is evidence of impairment). The following tables present assets and liabilities that were measured at fair value on a non-recurring basis as of March 31, 2016 and December 31, 2015, and that were included in the Company’s Consolidated Statements of Condition at those dates: Fair Value Measurements at March 31, 2016 Using (in thousands) Quoted Prices in Significant Other Significant Total Fair Certain impaired loans (1) $ — $ — $ 1,657 $ 1,657 Other assets (2) — $ — 9,251 9,251 Total $ — $ — $ 10,908 $ 10,908 (1) Represents the fair value of certain impaired loans, based on the value of the collateral. (2) Represents the fair value of OREO, based on the appraised value of the collateral subsequent to its initial classification as OREO. Fair Value Measurements at December 31, 2015 Using (in thousands) Quoted Prices in Significant Other Significant Total Fair Certain impaired loans (1) $ — $ — $ 3,930 $ 3,930 Other assets (2) — — 7,982 7,982 Total $ — $ — $ 11,912 $ 11,912 (1) Represents the fair value of certain impaired loans, based on the value of the collateral. (2) Represents the fair value of OREO, based on the appraised value of the collateral subsequent to its initial classification as OREO. The fair values of collateral-dependent impaired loans are determined using various valuation techniques, including consideration of appraised values and other pertinent real estate market data. Other Fair Value Disclosures Financial Accounting Standards Board (“FASB”) guidance requires the disclosure of fair value information about the Company’s on- and off-balance sheet financial instruments. When available, quoted market prices are used as the measure of fair value. In cases where quoted market prices are not available, fair values are based on present-value estimates or other valuation techniques. Such fair values are significantly affected by the assumptions used, the timing of future cash flows, and the discount rate. Because assumptions are inherently subjective in nature, estimated fair values cannot be substantiated by comparison to independent market quotes. Furthermore, in many cases, the estimated fair values provided would not necessarily be realized in an immediate sale or settlement of such instruments. The following tables summarize the carrying values, estimated fair values, and fair value measurement levels of financial instruments that were not carried at fair value on the Company’s Consolidated Statements of Condition at March 31, 2016 and December 31, 2015: March 31, 2016 Fair Value Measurement Using (in thousands) Carrying Estimated Quoted Prices in Significant Significant Financial Assets: Cash and cash equivalents $ 650,880 $ 650,880 $ 650,880 $ — $ — Securities held to maturity 4,068,750 4,304,161 — 4,303,392 769 FHLB stock (1) 551,247 551,247 — 551,247 — Loans, net 38,453,936 38,914,681 — — 38,914,681 Financial Liabilities: Deposits $ 28,982,312 $ 28,986,770 $ 22,193,600 (2) $ 6,793,170 (3) $ — Borrowed funds 13,344,772 13,412,305 — 13,412,305 — (1) Carrying value and estimated fair value are at cost. (2) NOW and money market accounts, savings accounts, and non-interest-bearing accounts. (3) Certificates of deposit. December 31, 2015 Fair Value Measurement Using (in thousands) Carrying Estimated Quoted Prices in Significant Significant Financial Assets: Cash and cash equivalents $ 537,674 $ 537,674 $ 537,674 $ — $ — Securities held to maturity 5,969,390 6,108,529 — 6,107,697 832 FHLB stock (1) 663,971 663,971 — 663,971 — Loans, net 38,011,995 38,245,434 — — 38,245,434 Financial Liabilities: Deposits $ 28,426,758 $ 28,408,915 $ 23,114,271 (2) $ 5,294,644 (3) $ — Borrowed funds 15,748,405 15,685,616 — 15,685,616 — (1) Carrying value and estimated fair value are at cost. (2) NOW and money market accounts, savings accounts, and non-interest-bearing accounts. (3) Certificates of deposit. The methods and significant assumptions used to estimate fair values for the Company’s financial instruments follow: Cash and Cash Equivalents Cash and cash equivalents include cash and due from banks and fed funds sold. The estimated fair values of cash and cash equivalents are assumed to equal their carrying values, as these financial instruments are either due on demand or have short-term maturities. Securities If quoted market prices are not available for a specific security, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics, or discounted cash flows. These pricing models primarily use market-based or independently sourced market parameters as inputs, including, but not limited to, yield curves, interest rates, equity or debt prices, and credit spreads. In addition to observable market information, pricing models also incorporate transaction details such as maturities and cash flow assumptions. Federal Home Loan Bank Stock Ownership in equity securities of the FHLB is restricted and there is no established market for their resale. The carrying amount approximates the fair value. Loans The loan portfolio is segregated into various components for valuation purposes in order to group loans based on their significant financial characteristics, such as loan type (mortgage or other) and payment status (performing or non-performing). The estimated fair values of mortgage and other loans are computed by discounting the anticipated cash flows from the respective portfolios. The discount rates reflect current market rates for loans with similar terms to borrowers of similar credit quality. The estimated fair values of non-performing mortgage and other loans are based on recent collateral appraisals. The methods used to estimate the fair values of loans are extremely sensitive to the assumptions and estimates used. While management has attempted to use assumptions and estimates that best reflect the Company’s loan portfolio and current market conditions, a greater degree of subjectivity is inherent in these values than in those determined in active markets. Accordingly, readers are cautioned in using this information for purposes of evaluating the financial condition and/or value of the Company in and of itself or in comparison with that of any other company. Mortgage Servicing Rights MSRs do not trade in an active market with readily observable prices. Accordingly, the Company bases the fair value of its MSRs on a valuation performed by a third-party valuation specialist. This specialist determines fair value based on the present value of estimated future net servicing income cash flows, and incorporates assumptions that market participants would use to estimate fair value, including estimates of prepayment speeds, discount rates, default rates, refinance rates, servicing costs, escrow account earnings, contractual servicing fee income, and ancillary income. The specialist and the Company evaluate, and periodically adjust, as necessary, these underlying inputs and assumptions to reflect market conditions and changes in the assumptions that a market participant would consider in valuing MSRs. Derivative Financial Instruments For exchange-traded futures and exchange-traded options, fair value is based on observable quoted market prices in an active market. For forward commitments to buy and sell loans and mortgage-backed securities, fair value is based on observable market prices for similar loans and securities in an active market. The fair value of IRLCs for one-to-four family mortgage loans that the Company intends to sell is based on internally developed models. The key model inputs primarily include the sum of the value of the forward commitment based on the loans’ expected settlement dates, the value of MSRs arrived at by an independent MSR broker, government agency price adjustment factors, and historical IRLC fall-out factors. Deposits The fair values of deposit liabilities with no stated maturity (i.e., NOW and money market accounts, savings accounts, and non-interest-bearing accounts) are equal to the carrying amounts payable on demand. The fair values of certificates of deposit (“CDs”) represent contractual cash flows, discounted using interest rates currently offered on deposits with similar characteristics and remaining maturities. These estimated fair values do not include the intangible value of core deposit relationships, which comprise a significant portion of the Company’s deposit base. Borrowed Funds The estimated fair value of borrowed funds is based either on bid quotations received from securities dealers or the discounted value of contractual cash flows with interest rates currently in effect for borrowed funds with similar maturities and structures. Off-Balance Sheet Financial Instruments The fair values of commitments to extend credit and unadvanced lines of credit are estimated based on an analysis of the interest rates and fees currently charged to enter into similar transactions, considering the remaining terms of the commitments and the creditworthiness of the potential borrowers. The estimated fair values of such off-balance sheet financial instruments were insignificant at March 31, 2016 and December 31, 2015. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Financial Instruments | Note 12. Derivative Financial Instruments The Company’s derivative financial instruments consist of financial forward and futures contracts, interest rate swaps, IRLCs, and options. These derivatives relate to mortgage banking operations, residential MSRs, and other risk management activities, and seek to mitigate or reduce the Company’s exposure to losses from adverse changes in interest rates. These activities will vary in scope based on the level and volatility of interest rates, other changing market conditions, and the types of assets held. In accordance with the applicable accounting guidance, the Company takes into account the impact of collateral and master netting agreements that allow it to settle all derivative contracts held with a single counterparty on a net basis, and to offset the net derivative position with the related collateral when recognizing derivative assets and liabilities. As a result, the Company’s Statements of Financial Condition could reflect derivative contracts with negative fair values that are included in derivative assets, and contracts with positive fair values that are included in derivative liabilities. The Company held derivatives with a notional amount of $3.2 billion at March 31, 2016. Changes in the fair value of these derivatives are reflected in current-period earnings. None of these derivatives are designated as hedges for accounting purposes. The Company uses various financial instruments, including derivatives, in connection with its strategies to reduce pricing risk resulting from changes in interest rates. Derivative instruments may include IRLCs entered into with borrowers or correspondents/brokers to acquire agency-conforming fixed and adjustable rate residential mortgage loans that will be held for sale, as well as Treasury options and Eurodollar futures. The Company enters into forward contracts to sell fixed rate mortgage-backed securities to protect against changes in the prices of agency-conforming fixed rate loans held for sale. Forward contracts are entered into with securities dealers in an amount related to the portion of IRLCs that is expected to close. The value of these forward sales contracts moves inversely with the value of the loans in response to changes in interest rates. To manage the price risk associated with fixed-rate non-conforming mortgage loans, the Company generally enters into forward contracts on mortgage-backed securities or forward commitments to sell loans to approved investors. Short positions in Eurodollar futures contracts are used to manage price risk on adjustable rate mortgage loans held for sale. The Company uses interest rate swaps to hedge the fair value of its residential MSRs. The Company also purchases put and call options to manage the risk associated with variations in the amount of IRLCs that ultimately close. The following table sets forth information regarding the Company’s derivative financial instruments at March 31, 2016: March 31, 2016 (in thousands) Notional Unrealized (1) Gain Loss Treasury options $ 510,000 $ 1,072 $ 61 Eurodollar futures 50,000 — 17 Swaps 170,000 1,496 — Forward commitments to sell loans/mortgage-backed securities 1,084,000 128 6,861 Forward commitments to buy loans/mortgage-backed securities 715,000 3,880 321 Interest rate lock commitments 630,194 6,689 — Total derivatives $ 3,159,194 $ 13,265 $ 7,260 (1) Derivatives in a net gain position are recorded as “Other assets” and derivatives in a net loss position are recorded as “Other liabilities” in the Consolidated Statements of Condition. In addition, the Company mitigates a portion of the risk associated with changes in the value of its residential MSRs. The general strategy for mitigating this risk is to purchase derivative instruments, the value of which changes in the opposite direction of interest rates. This action partially offsets changes in the value of our servicing assets, which tends to move in the same direction as interest rates. Accordingly, the Company purchases Eurodollar futures and call options on Treasury securities, and enters into forward contracts to purchase mortgage-backed securities. The following table sets forth the effect of derivative instruments on the Consolidated Statements of Income and Comprehensive Income for the periods indicated: Gain Included in Mortgage Banking Income for the Three Months Ended March 31, (in thousands) 2016 2015 Treasury options $ 7,231 $ 3,416 Treasury and Eurodollar futures 66 383 Swaps 1,496 — Forward commitments to buy/sell loans/mortgage-backed securities 869 1,772 Total gain $ 9,662 $ 5,571 The Company has in place an enforceable master netting arrangement with every counterparty. All master netting arrangements include rights to offset associated with the Company’s recognized derivative assets, derivative liabilities, and the cash collateral received and pledged. Accordingly, the Company, where appropriate, offsets all derivative asset and liability positions with the cash collateral received and pledged. The following tables present the effect of the master netting arrangements on the presentation of the derivative assets in the Consolidated Statements of Condition as of the dates indicated: March 31, 2016 (in thousands) Gross Amount (1) Gross Amount Net Amount of Gross Amounts Not Net Financial Cash Derivatives $ 16,956 $ 845 $ 16,111 $ — $ — $ 16,111 (1) Includes $3.7 million to purchase Treasury options. December 31, 2015 (in thousands) Gross Amount (1) Gross Amount Net Amount of Gross Amounts Not Net Financial Cash Derivatives $ 5,743 $ 1,024 $ 4,719 $ — $ — $ 4,719 (1) Includes $1.9 million to purchase Treasury options. The following tables present the effect the master netting arrangements had on the presentation of the derivative liabilities in the Consolidated Statements of Condition as of the dates indicated: March 31, 2016 (in thousands) Gross Amount Gross Amount Net Amount of Gross Amounts Not Net Financial Cash Derivatives $ 7,260 $ 5,760 $ 1,500 $ — $ — $ 1,500 December 31, 2015 (in thousands) Gross Amount Gross Amount Net Amount of Gross Amounts Not Net Financial Cash Derivatives $ 4,322 $ 3,986 $ 336 $ — $ — $ 336 |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting | Note 13. Segment Reporting The Company’s operations are divided into two reportable business segments: Banking Operations and Residential Mortgage Banking. These operating segments have been identified based on the Company’s organizational structure. The segments require unique technology and marketing strategies, and offer different products and services. While the Company is managed as an integrated organization, individual executive managers are held accountable for the operations of these business segments. The Company measures and presents information for internal reporting purposes in a variety of ways. The internal reporting system presently used by management in the planning and measurement of operating activities, and to which most managers are held accountable, is based on organizational structure. The management accounting process uses various estimates and allocation methodologies to measure the performance of the operating segments. To determine financial performance for each segment, the Company allocates capital, funding charges and credits, certain non-interest expenses, and income tax provisions to each segment, as applicable. Allocation methodologies are subject to periodic adjustment as the internal management accounting system is revised and/or as business or product lines within the segments change. In addition, because the development and application of these methodologies is a dynamic process, the financial results presented may be periodically revised. The Company seeks to maximize shareholder value by, among other means, optimizing the return on stockholders’ equity and managing risk. Capital is assigned to each segment, the combination of which is equivalent to the Company’s consolidated total, on an economic basis, using management’s assessment of the inherent risks associated with the segment. Capital allocations are made to cover the following risk categories: credit risk, liquidity risk, interest rate risk, option risk, basis risk, market risk, and operational risk. The Company allocates expenses to the reportable segments based on various factors, including the volume and number of loans produced and the number of full-time equivalent employees. Income taxes are allocated to the various segments based on taxable income and statutory rates applicable to the segment. Banking Operations Segment The Banking Operations segment serves consumers and businesses by offering and servicing a variety of loan and deposit products and other financial services. Residential Mortgage Banking Segment The Residential Mortgage Banking segment originates, aggregates, sells, and services one-to-four family mortgage loans. Mortgage loan products consist primarily of agency-conforming, fixed- and adjustable-rate loans and, to a lesser extent, jumbo loans, for the purpose of purchasing or refinancing one-to-four family homes. The Residential Mortgage Banking segment earns interest on loans held in the warehouse and non-interest income from the origination and servicing of loans. It also recognizes gains or losses on the sale of such loans. The following tables provide a summary of the Company’s segment results for the three months ended March 31, 2016 and 2015, on an internally managed accounting basis: For the Three Months Ended March 31, 2016 (in thousands) Banking Residential Total Net interest income $ 324,917 $ 2,949 $ 327,866 Recoveries of loan losses (176 ) — (176 ) Non-Interest Income: Third party (1) 30,586 4,651 35,237 Inter-segment (4,112 ) 4,112 — Total non-interest income 26,474 8,763 35,237 Non-interest expense (2) 142,050 16,398 158,448 Income before income tax expense 209,517 (4,686 ) 204,831 Income tax expense (benefit) 76,815 (1,893 ) 74,922 Net income (loss) $ 132,702 $ (2,793 ) $ 129,909 Identifiable segment assets (period-end) $ 47,739,937 $ 775,635 $ 48,515,572 (1) Includes ancillary fee income. (2) Includes both direct and indirect expenses. For the Three Months Ended March 31, 2015 (in thousands) Banking Residential Total Net interest income $ 289,285 $ 3,483 $ 292,768 Provision for loan losses 7 — 7 Non-interest income: Third party (1) 33,154 19,080 52,234 Inter-segment (4,170 ) 4,170 — Total non-interest income 28,984 23,250 52,234 Non-interest expense (2) 140,151 16,685 156,836 Income before income tax expense 178,111 10,048 188,159 Income tax expense 64,890 4,010 68,900 Net income $ 113,221 $ 6,038 $ 119,259 Identifiable segment assets (period-end) $ 47,573,020 $ 678,695 $ 48,251,715 (1) Includes ancillary fee income. (2) Includes both direct and indirect expenses. |
Impact of Recent Accounting Pro
Impact of Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2016 | |
Impact of Recent Accounting Pronouncements | Note 14. Impact of Recent Accounting Pronouncements In March 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-09, “Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” ASU No. 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, classification on the statement of cash flows, and accounting for forfeitures. The Company adopted ASU No. 2016-09 prospectively, effective for the first quarter of 2016. Upon adoption, the Company recorded an immaterial cumulative-effect adjustment to the opening balance of retained earnings. In addition, ASU No. 2016-09 requires that excess tax benefits and shortfalls be recorded as income tax benefit or expense in the income statement, rather than equity. This resulted in an immaterial benefit to income tax expense in the first quarter of 2016. Relative to forfeitures, ASU No. 2016-09 allows an entity’s accounting policy election to either continue to estimate the number of awards that are expected to vest, as under current guidance, or account for forfeitures when they occur. The Company has elected to continue its existing practice of estimating the number of awards that will be forfeited. The income tax effects of ASU No. 2016-09 on the statement of cash flows are now classified as cash flows from operating activities, rather than cash flows from financing activities. The Company elected to apply this cash flow classification guidance prospectively and, therefore, prior periods have not been adjusted. ASU No. 2016-09 also requires the presentation of certain employee withholding taxes as a financing activity on the Consolidated Statement of Cash Flows; this is consistent with the manner in which we have presented such employee withholding taxes in the past. Accordingly, no reclassification for prior periods is required. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” ASU No. 2016-02 will require organizations that lease assets (hereinafter referred to as “lessees”) to recognize as assets and liabilities on the balance sheet the respective rights and obligations created by those leases. Under ASU No. 2016-02, a lessee will be required to recognize assets and liabilities for leases with lease terms of more than twelve months. ASU No. 2016-02 also will require disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. These disclosures include qualitative and quantitative requirements, providing additional information about the amounts recorded in the financial statements. ASU No. 2016-02 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early application will be permitted. The Company is in the process of evaluating the effects the adoption of ASU No. 2016-02 may have on the Company’s consolidated statements of condition and results of operations. In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments—Overall (Subtopic 825-10)—Recognition and Measurement of Financial Assets and Financial Liabilities.” The amendments in ASU No. 2016-01 require all equity investments to be measured at fair value, with changes in the fair value recognized through net income (other than those accounted for under the equity method of accounting or those resulting in consolidation of the investee). The amendments in ASU No. 2016-01 also require an entity to present separately in “Other comprehensive income” the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. In addition, the amendments in ASU No. 2016-01 eliminate the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities and the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet for public business entities. (ASU No. 2016-01 is the final version of Proposed ASU No. 2013-220—Financial Instruments—Overall (Subtopic 825-10) and Proposed ASU No. 2013-221—Financial Instruments—Overall (Subtopic 825-10).) ASU No. 2016-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of ASU No. 2016-01 is not expected to have a material effect on the Company’s consolidated statements of condition or results of operations. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” The amendments in ASU No. 2014-09 create Topic 606, “Revenue from Contracts with Customers,” and supersede the revenue recognition requirements in Topic 605, “Revenue Recognition,” including most industry-specific revenue recognition guidance throughout the Industry Topics of the Accounting Standards Codification. In addition, the amendments supersede the cost guidance in Subtopic 605-35, “Revenue Recognition—Construction-Type and Production-Type Contracts,” and create new Subtopic 340-40, “Other Assets and Deferred Costs—Contracts with Customers.” In summary, the core principle of Topic 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU No. 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early application is permitted only as of annual periods beginning after December 31, 2106, including interim reporting periods within that fiscal year. The Company is in the process of evaluating the effects the adoption of ASU No. 2014-09 may have on the Company’s consolidated statements of condition and results of operations. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2016 | |
Subsequent Events | Note 15. Subsequent Events Proposed Merger with Astoria Financial Corporation On April 26, 2016, shareholders of both companies approved the proposed merger of Astoria Financial and the Company. Pending regulatory approval, and subject to the Agreement and Plan of Merger dated as of October 28, 2015, Astoria Financial will merge with and into the Company, and Astoria Bank, Astoria Financial’s primary subsidiary, will merge with and into the Community Bank. |
Organization and Basis of Pre24
Organization and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Basis of Presentation | Basis of Presentation The following is a description of the significant accounting and reporting policies that the Company and its wholly-owned subsidiaries follow in preparing and presenting their consolidated financial statements, which conform to U.S. generally accepted accounting principles (“GAAP”) and to general practices within the banking industry. The preparation of financial statements in conformity with GAAP requires the Company to make estimates and judgments that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Estimates that are particularly susceptible to change in the near term are used in connection with the determination of the allowances for loan losses; the valuation of mortgage servicing rights (“MSRs”); the evaluation of goodwill for impairment; the evaluation of other-than-temporary impairment (“OTTI”) on securities; and the evaluation of the need for a valuation allowance on the Company’s deferred tax assets. The accompanying consolidated financial statements include the accounts of the Company and other entities in which the Company has a controlling financial interest. All inter-company accounts and transactions are eliminated in consolidation. The Company currently has certain unconsolidated subsidiaries in the form of wholly-owned statutory business trusts, which were formed to issue guaranteed capital debentures (“capital securities”). Please see Note 7, “Borrowed Funds,” for additional information regarding these trusts. When necessary, certain reclassifications are made to prior-year amounts to conform to the current-year presentation. The presentation of long-term borrowings in the Consolidated Statements of Cash Flows for the three months ended March 31, 2015 is presented on a gross basis to conform to the presentation of long-term borrowings in the three months ended March 31, 2016. |
Computation of Earnings per S25
Computation of Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Computation of Basic and Diluted Earnings Per Share | The following table presents the Company’s computation of basic and diluted EPS for the periods indicated: Three Months Ended March 31, (in thousands, except share and per share amounts) 2016 2015 Net income $ 129,909 $ 119,259 Less: Dividends paid on and earnings allocated to participating securities (979 ) (872 ) Earnings applicable to common stock $ 128,930 $ 118,387 Weighted average common shares outstanding 484,605,397 441,990,338 Basic earnings per common share $ 0.27 $ 0.27 Earnings applicable to common stock $ 128,930 $ 118,387 Weighted average common shares outstanding 484,605,397 441,990,338 Potential dilutive common shares (1) — — Total shares for diluted earnings per share computation 484,605,397 441,990,338 Diluted earnings per common share and common share equivalents $ 0.27 $ 0.27 (1) At March 31, 2016, there were no stock options outstanding. Options to purchase 32,400 shares of the Company’s common stock that were outstanding as of March 31, 2015 at weighted average exercise prices of $18.15 per share were excluded from the computation of diluted EPS because their inclusion would have had an antidilutive effect. |
Reclassifications Out of Accu26
Reclassifications Out of Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Reclassifications Out of Accumulated Other Comprehensive Loss | Reclassifications Out of Accumulated Other Comprehensive Loss (in thousands) For the Three Months Ended March 31, 2016 Details about Accumulated Other Amount Reclassified (1) Affected Line Item in the Consolidated Statement of Operations and Comprehensive (Loss) Income Amortization of defined benefit pension plan items: Prior-service costs $ 62 Included in the computation of net periodic (credit) expense (2) Actuarial losses (2,343 ) Included in the computation of net periodic (credit) expense (2) (2,281 ) Total before tax 945 Tax benefit (1,336 ) Amortization of defined benefit pension plan items, net of tax Total reclassifications for the period $ (1,336 ) (1) Amounts in parentheses indicate expense items. (2) Please see Note 9, “Pension and Other Post-Retirement Benefits,” for additional information. |
Securities (Tables)
Securities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Summary of Portfolio of Securities Available for Sale | The following tables summarize the Company’s portfolio of securities available for sale at March 31, 2016 and December 31, 2015: March 31, 2016 (in thousands) Amortized Gross Gross Fair Value Municipal bonds $ 727 $ 73 $ — $ 800 Capital trust notes 9,448 — 2,607 6,841 Preferred stock 118,205 9,184 275 127,114 Mutual funds and common stock (1) 16,876 618 — 17,494 Total securities available for sale $ 145,256 $ 9,875 $ 2,882 $ 152,249 (1) Primarily consists of mutual funds that are Community Reinvestment Act-qualified investments. December 31, 2015 (in thousands) Amortized Gross Gross Fair Value Mortgage-Related Securities: GSE certificates (1) $ 53,820 $ 33 $ 1 $ 53,852 Other Securities: Municipal bonds $ 725 $ 70 $ — $ 795 Capital trust notes 9,444 — 2,480 6,964 Preferred stock 118,205 7,415 248 125,372 Common stock 16,877 470 75 17,272 Total other securities $ 145,251 $ 7,955 $ 2,803 $ 150,403 Total securities available for sale $ 199,071 $ 7,988 $ 2,804 $ 204,255 (1) Government-sponsored enterprise. |
Summary of Portfolio of Securities Held to Maturity | The following tables summarize the Company’s portfolio of securities held to maturity at March 31, 2016 and December 31, 2015: March 31, 2016 (in thousands) Amortized Carrying Gross Gross Fair Value Mortgage-Related Securities: GSE certificates $ 2,256,996 $ 2,256,996 $ 140,529 $ 54 $ 2,397,471 GSE CMOs (1) 1,229,105 1,229,105 76,401 — 1,305,506 Total mortgage-related securities $ 3,486,101 $ 3,486,101 $ 216,930 $ 54 $ 3,702,977 Other Securities: GSE debentures $ 368,784 $ 368,784 $ 19,461 $ — $ 388,245 Municipal bonds 74,419 74,419 1,661 — 76,080 Corporate bonds 73,871 73,871 11,049 — 84,920 Capital trust notes 74,262 65,575 3,058 16,694 51,939 Total other securities $ 591,336 $ 582,649 $ 35,229 $ 16,694 $ 601,184 Total securities held to maturity (2) $ 4,077,437 $ 4,068,750 $ 252,159 $ 16,748 $ 4,304,161 (1) Collateralized mortgage obligations. (2) Held-to-maturity securities are reported at a carrying amount equal to amortized cost less the non-credit portion of OTTI recorded in Accumulated Other Comprehensive Loss (“AOCL”). At March 31, 2016, the non-credit portion of OTTI recorded in AOCL was $8.7 million, pre-tax. December 31, 2015 (in thousands) Amortized Carrying Gross Gross Fair Value Mortgage-Related Securities: GSE certificates $ 2,269,828 $ 2,269,828 $ 76,827 $ 4,722 $ 2,341,933 GSE CMOs (1) 1,325,033 1,325,033 53,236 57 1,378,212 Total mortgage-related securities $ 3,594,861 $ 3,594,861 $ 130,063 $ 4,779 $ 3,720,145 Other Securities: GSE debentures $ 2,159,856 $ 2,159,856 $ 23,892 $ 7,568 $ 2,176,180 Municipal bonds 75,317 75,317 262 1,084 74,495 Corporate bonds 73,756 73,756 10,503 — 84,259 Capital trust notes 74,317 65,600 3,750 15,900 53,450 Total other securities $ 2,383,246 $ 2,374,529 $ 38,407 $ 24,552 $ 2,388,384 Total securities held to maturity (2) $ 5,978,107 $ 5,969,390 $ 168,470 $ 29,331 $ 6,108,529 (1) Collateralized mortgage obligations. (2) Held-to-maturity securities are reported at a carrying amount equal to amortized cost less the non-credit portion of OTTI recorded in AOCL. At December 31, 2015, the non-credit portion of OTTI recorded in AOCL was $8.7 million, pre-tax. |
Summary of Gross Proceeds and Gross Realized Gains from Sale of Available-for-Sale Securities | The following table summarizes the gross proceeds and gross realized gains from the sale of available-for-sale securities during the three months ended March 31, 2016 and 2015: For the Three Months Ended March 31, (in thousands) 2016 2015 Gross proceeds $ 104,663 $ 135,211 Gross realized gains 163 211 |
Credit Loss Component of Other Than Temporary Impairment on Debt Securities | In the following table, the beginning balance represents the credit loss component for debt securities on which OTTI occurred prior to January 1, 2016. For credit-impaired debt securities, OTTI recognized in earnings after that date is presented as an addition in two components, based upon whether the current period is the first time a debt security was credit-impaired (initial credit impairment) or is not the first time a debt security was credit-impaired (subsequent credit impairment). (in thousands) For the Three Months Ended March 31, 2016 Beginning credit loss amount as of January 1, 2016 $ 198,766 Add: Initial other-than-temporary credit losses — Subsequent other-than-temporary credit losses — Amount previously recognized in AOCL — Less: Realized losses for securities sold — Securities intended or required to be sold — Increase in expected cash flows on debt securities — Ending credit loss amount as of March 31, 2016 $ 198,766 |
Summary of Carrying Amount and Estimated Fair Value of Held-to-Maturity Debt Securities and Amortized Cost and Estimated Fair Value of Available-for-Sale Debt Securities by Contractual Maturity | The following table summarizes the carrying amounts and estimated fair values of held-to-maturity mortgage-backed securities and debt securities, and the amortized costs and estimated fair values of available-for-sale securities, at March 31, 2016, by contractual maturity. At March 31, 2016 (dollars in thousands) Mortgage- Average U.S. Treasury Average State, County, Average (1) Other Debt (2) Average Fair Value Held-to-Maturity Securities: Due within one year $ — — % $ — — % $ 327 2.96 % $ — — % $ 328 Due from one to five years 358,897 3.74 59,792 4.17 — — — — 452,138 Due from five to ten years 2,709,236 3.23 308,992 3.14 — — 64,211 4.74 3,279,755 Due after ten years 417,968 2.93 — — 74,092 2.89 75,235 5.14 571,940 Total securities held to maturity $ 3,486,101 3.25 % $ 368,784 3.31 % $ 74,419 2.89 % $ 139,446 4.96 % $ 4,304,161 Available-for-Sale Securities: (3) Due within one year $ — — % $ — — % $ 149 6.39 % $ — — % $ 154 Due from one to five years — — — — 578 6.56 — — 646 Due from five to ten years — — — — — — — — — Due after ten years — — — — — — 9,448 4.46 6,841 Total securities available for sale $ — — % $ — — % $ 727 6.52 % $ 9,448 4.46 % $ 7,641 (1) Not presented on a tax-equivalent basis. (2) Includes corporate bonds and capital trust notes (3) As equity securities have no contractual maturity, they have been excluded from this table. |
Summary of Held-to-Maturity and Available-for-Sale Securities having Continuous Unrealized Loss Position | The following table presents held-to-maturity and available-for-sale securities having a continuous unrealized loss position for less than twelve months and for twelve months or longer as of March 31, 2016: At March 31, 2016 Less than Twelve Months Twelve Months or Longer Total (in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Temporarily Impaired Held-to-Maturity Securities: GSE certificates $ 7,769 $ 14 $ 5,069 $ 40 $ 12,838 $ 54 GSE CMOs — — — — — — Municipal bonds — — — — — — Capital trust notes 24,753 247 19,770 16,447 44,523 16,694 Total temporarily impaired held-to-maturity securities $ 32,522 $ 261 $ 24,839 $ 16,487 $ 57,361 $ 16,748 Temporarily Impaired Available-for-Sale Securities: Capital trust notes 1,980 20 4,861 2,587 6,841 2,607 Equity securities 15,017 275 — — 15,017 275 Total temporarily impaired available-for-sale securities $ 16,997 $ 295 $ 4,861 $ 2,587 $ 21,858 $ 2,882 The following table presents held-to-maturity and available-for-sale securities having a continuous unrealized loss position for less than twelve months and for twelve months or longer as of December 31, 2015: At December 31, 2015 Less than Twelve Months Twelve Months or Longer Total (in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Temporarily Impaired Held-to-Maturity Securities: GSE debentures $ 547,484 $ 728 $ 1,176,949 $ 6,840 $ 1,724,433 $ 7,568 GSE certificates 299,019 4,608 3,899 114 302,918 4,722 GSE CMOs 9,943 57 — — 9,943 57 Municipal bonds 42,083 1,084 — — 42,083 1,084 Capital trust notes 24,601 399 20,710 15,501 45,311 15,900 Total temporarily impaired held-to-maturity securities $ 923,130 $ 6,876 $ 1,201,558 $ 22,455 $ 2,124,688 $ 29,331 Temporarily Impaired Available-for-Sale Securities: GSE certificates $ 51,959 $ 1 $ — $ — $ 51,959 $ 1 Capital trust notes 1,968 32 4,997 2,448 6,965 2,480 Equity securities 51,775 323 — — 51,775 323 Total temporarily impaired available-for-sale securities $ 105,702 $ 356 $ 4,997 $ 2,448 $ 110,699 $ 2,804 |
Loans (Tables)
Loans (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Composition of Loan Portfolio | The following table sets forth the composition of the loan portfolio at March 31, 2016 and December 31, 2015: March 31, 2016 December 31, 2015 (dollars in thousands) Amount Percent of Non-Covered Amount Percent of Non-Covered Loans Held for Investment: Mortgage Loans: Multi-family $ 26,406,585 73.04 % $ 25,971,629 72.67 % Commercial real estate 7,676,793 21.23 7,857,204 21.98 Acquisition, development, and construction 344,645 0.95 311,676 0.87 One-to-four family 186,033 0.52 116,841 0.33 Total mortgage loans held for investment $ 34,614,056 95.74 $ 34,257,350 95.85 Other Loans: Commercial and industrial (1) 1,140,835 3.16 1,085,529 3.04 Lease financing, net of unearned income of $43,964 and $43,553, respectively 369,674 1.02 365,027 1.02 Total commercial and industrial loans 1,510,509 4.18 1,450,556 4.06 Purchased credit-impaired loans 6,474 0.02 8,344 0.02 Other 22,629 0.06 24,239 0.07 Total other loans held for investment 1,539,612 4.26 1,483,139 4.15 Total non-covered loans held for investment $ 36,153,668 100.00 % $ 35,740,489 100.00 % Net deferred loan origination costs 22,214 22,715 Allowance for losses on non-covered loans (150,778 ) (147,124 ) Non-covered loans held for investment, net $ 36,025,104 $ 35,616,080 Covered loans 1,986,054 2,060,089 Allowance for losses on covered loans (28,498 ) (31,395 ) Covered loans, net $ 1,957,556 $ 2,028,694 Loans held for sale 471,276 367,221 Total loans, net $ 38,453,936 $ 38,011,995 (1) Includes specialty finance loans of $895.9 million and $880.7 million and other C&I loans of $614.7 million and $569.9 million, respectively, at March 31, 2016 and December 31, 2015. |
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, 2016: (in thousands) Loans 30-89 Days Non- Accrual (1) Loans 90 Days or More Total Past Due Current Total Loans Multi-family $ 760 $ 15,900 $ — $ 16,660 $ 26,389,925 $ 26,406,585 Commercial real estate — 11,863 — 11,863 7,664,930 7,676,793 One-to-four family 380 11,172 — 11,552 174,481 186,033 Acquisition, development, and construction — — — — 344,645 344,645 Commercial and industrial (2) 1,880 8,940 — 10,820 1,499,689 1,510,509 Other 165 1,358 — 1,523 21,106 22,629 Total $ 3,185 $ 49,233 $ — $ 52,418 $ 36,094,776 $ 36,147,194 (1) Excludes $954,000 of non-covered PCI loans that were 90 days or more past due. (2) Includes lease financing receivables, all of which were current. The following table presents information regarding the quality of the Company’s non-covered loans held for investment at December 31, 2015: (in thousands) Loans 30-89 Days Non- Accrual (1) Loans 90 Days or More Total Past Due Current Total Loans Multi-family $ 4,818 $ 13,904 $ — $ 18,722 $ 25,952,907 $ 25,971,629 Commercial real estate 178 14,920 — 15,098 7,842,106 7,857,204 One-to-four family 1,117 12,259 — 13,376 103,465 116,841 Acquisition, development, and construction — 27 — 27 311,649 311,676 Commercial and industrial (2) — 4,473 — 4,473 1,446,083 1,450,556 Other 492 1,242 — 1,734 22,505 24,239 Total $ 6,605 $ 46,825 $ — $ 53,430 $ 35,678,715 $ 35,732,145 (1) Excludes $969,000 of non-covered PCI loans that were 90 days or more past due. (2) Includes lease financing receivables, all of which were current. |
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, 2016: (in thousands) Multi- Family Commercial One-to- Four Acquisition, Total Commercial (1) Other Total Other Credit Quality Indicator: Pass $ 26,371,966 $ 7,635,582 $ 174,862 $ 343,835 $ 34,526,245 $ 1,483,734 $ 21,271 $ 1,505,005 Special mention 5,992 30,058 — 810 36,860 1,632 — 1,632 Substandard 28,627 11,153 11,171 — 50,951 25,143 1,358 26,501 Doubtful — — — — — — — — Total $ 26,406,585 $ 7,676,793 $ 186,033 $ 344,645 $ 34,614,056 $ 1,510,509 $ 22,629 $ 1,533,138 (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 by credit quality indicator at December 31, 2015: (in thousands) Multi- Family Commercial One-to- Four Acquisition, Total Commercial (1) Other Total Other Credit Quality Indicator: Pass $ 25,936,423 $ 7,839,127 $ 104,582 $ 309,039 $ 34,189,171 $ 1,433,778 $ 22,996 $ 1,456,774 Special mention 6,305 3,883 — — 10,188 11,771 — 11,771 Substandard 28,901 14,194 12,259 2,637 57,991 5,007 1,243 6,250 Doubtful — — — — — — — — Total $ 25,971,629 $ 7,857,204 $ 116,841 $ 311,676 $ 34,257,350 $ 1,450,556 $ 24,239 $ 1,474,795 (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, 2016 and December 31, 2015: March 31, 2016 December 31, 2015 (in thousands) Accruing Non-Accrual Total Accruing Non-Accrual Total Loan Category: Multi-family $ 2,008 $ 10,986 $ 12,994 $ 2,017 $ 635 $ 2,652 Commercial real estate — 2,558 2,558 115 6,255 6,370 One-to-four family — 1,512 1,512 — 987 987 Acquisition, development, and construction — — — — 27 27 Commercial and industrial 624 1,959 2,583 627 1,279 1,906 Other — 211 211 — 213 213 Total $ 2,632 $ 17,226 $ 19,858 $ 2,759 $ 9,396 $ 12,155 |
Financial Effects of Troubled Debt Restructurings | The financial effects of the Company’s TDRs for the three months ended March 31, 2016 and the twelve months ended December 31, 2015 are summarized as follows: For the Three Months Ended March 31, 2016 Weighted Average Interest Rate (dollars in thousands) Number Pre- Post- Charge- Capitalized Loan Category: Multi-family 1 4.63 % 4.00 % $ — $ — One-to-four family 2 3.52 3.29 — 4 Commercial and industrial 1 3.30 3.10 47 — Total 4 $ 47 $ 4 |
Covered Loans Acquired in AmTrust and Desert Hills Acquisitions | The following table presents the carrying value of covered loans acquired in the AmTrust and Desert Hills acquisitions as of March 31, 2016: (dollars in thousands) Amount Percent of Loan Category: One-to-four family $ 1,853,643 93.3 % Other loans 132,411 6.7 Total covered loans $ 1,986,054 100.0 % |
Changes in Accretable Yield for Covered Loans | In the three months ended March 31, 2016, changes in the accretable yield for covered loans were as follows: (in thousands) Accretable Yield Balance at beginning of period $ 803,145 Reclassification from non-accretable difference 25,261 Accretion (33,320 ) Balance at end of period $ 795,086 |
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, 2016 and December 31, 2015: (in thousands) March 31, 2016 December 31, 2015 Covered Loans 90 Days or More Past Due: One-to-four family $ 131,876 $ 130,626 Other loans 6,859 6,556 Total covered loans 90 days or more past due $ 138,735 $ 137,182 The following table presents information regarding the Company’s covered loans that were 30 to 89 days past due at March 31, 2016 and December 31, 2015: (in thousands) March 31, 2016 December 31, 2015 Covered Loans 30-89 Days Past Due: One-to-four family $ 26,849 $ 30,455 Other loans 1,158 2,369 Total covered loans 30-89 days past due $ 28,007 $ 32,824 |
Allowances for Loan Losses (Tab
Allowances for Loan Losses (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Activity in Allowance for Loan Losses | The following tables provide additional information regarding the Company’s allowances for losses on non-covered and covered loans, based upon the method of evaluating loan impairment: (in thousands) Mortgage Other Total Allowances for Loan Losses at March 31, 2016: Loans individually evaluated for impairment $ — $ — $ — Loans collectively evaluated for impairment 124,639 24,422 149,061 Acquired loans with deteriorated credit quality 13,425 16,790 30,215 Total $ 138,064 $ 41,212 $ 179,276 (in thousands) Mortgage Other Total Allowances for Loan Losses at December 31, 2015: Loans individually evaluated for impairment $ — $ — $ — Loans collectively evaluated for impairment 122,712 22,484 145,196 Acquired loans with deteriorated credit quality 14,583 18,740 33,323 Total $ 137,295 $ 41,224 $ 178,519 |
Additional Information Regarding Methods Used to Evaluate Loan Portfolio for Impairment | The following tables provide additional information regarding the methods used to evaluate the Company’s loan portfolio for impairment: (in thousands) Mortgage Other Total Loans Receivable at March 31, 2016: Loans individually evaluated for impairment $ 27,063 $ 9,071 $ 36,134 Loans collectively evaluated for impairment 34,586,993 1,524,067 36,111,060 Acquired loans with deteriorated credit quality 1,859,486 133,042 1,992,528 Total $ 36,473,542 $ 1,666,180 $ 38,139,722 (in thousands) Mortgage Other Total Loans Receivable at December 31, 2015: Loans individually evaluated for impairment $ 47,480 $ 4,474 $ 51,954 Loans collectively evaluated for impairment 34,209,870 1,470,321 35,680,191 Acquired loans with deteriorated credit quality 1,924,255 144,178 2,068,433 Total $ 36,181,605 $ 1,618,973 $ 37,800,578 |
Additional Information Regarding Impaired Non-Covered Loans | The following tables present additional information about the Company’s impaired non-covered loans at March 31, 2016 and December 31, 2015: (in thousands) Recorded Unpaid Related Average Interest Impaired loans with no related allowance: Multi-family $ 13,002 $ 15,054 $ — $ 20,233 $ 208 Commercial real estate 11,203 16,899 — 12,599 54 One-to-four family 2,859 3,373 — 3,122 23 Acquisition, development, and construction — — — 1,318 — Other 9,070 9,475 — 6,772 50 Total impaired loans $ 36,134 $ 44,801 $ — $ 44,044 $ 335 (in thousands) Recorded Unpaid Related Average Interest Impaired loans with no related allowance: Multi-family $ 27,464 $ 29,379 $ — $ 30,965 $ 1,320 Commercial real estate 13,995 15,480 — 25,066 383 One-to-four family 3,384 8,929 — 2,302 75 Acquisition, development, and construction 2,637 3,035 — 1,086 148 Other 4,474 4,794 — 8,386 118 Total impaired loans $ 51,954 $ 61,617 $ — $ 67,805 $ 2,044 |
Non-Covered Loans | |
Activity in Allowance for Loan Losses | The following table summarizes activity in the allowance for losses on non-covered loans for the three months ended March 31, 2016 and 2015: March 31, 2016 2015 (in thousands) Mortgage Other Total Mortgage Other Total Balance, beginning of period $ 124,478 $ 22,646 $ 147,124 $ 122,616 $ 17,241 $ 139,857 Charge-offs (46 ) (148 ) (194 ) (485 ) (313 ) (798 ) Recoveries 879 248 1,127 1,400 163 1,563 Transfer from the allowance for losses on covered loans (1) — — — 2,250 166 2,416 Provision for (recovery of) non-covered loan losses 874 1,847 2,721 (6,603 ) 5,733 (870 ) Balance, end of period $ 126,185 $ 24,593 $ 150,778 $ 119,178 $ 22,990 $ 142,168 (1) Represents the allowance associated with $14.2 million of loans acquired in the Desert Hills transaction that were transferred from covered loans to non-covered loans upon expiration of the related FDIC loss sharing agreement. |
Covered Loans | |
Activity in Allowance for Loan Losses | The following table summarizes activity in the allowance for losses on covered loans for the three months ended March 31, 2016 and 2015: March 31, (in thousands) 2016 2015 Balance, beginning of period $ 31,395 $ 45,481 (Recovery of) provision for losses on covered loans (2,897 ) 877 Transfer to the allowance for losses on non-covered loans (1) — (2,416 ) Balance, end of period $ 28,498 $ 43,942 (1) Represents the allowance associated with $14.2 million of loans acquired in the Desert Hills transaction that were transferred from covered loans to non-covered loans upon expiration of the related FDIC loss sharing agreement. |
Borrowed Funds (Tables)
Borrowed Funds (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Summary of Borrowed Funds | The following table summarizes the Company’s borrowed funds at March 31, 2016 and December 31, 2015: (in thousands) March 31, 2016 December 31, Wholesale borrowings: FHLB advances $ 10,933,100 $ 13,463,800 Repurchase agreements 1,500,000 1,500,000 Fed funds purchased 553,000 426,000 Total wholesale borrowings $ 12,986,100 $ 15,389,800 Junior subordinated debentures 358,672 358,605 Total borrowed funds $ 13,344,772 $ 15,748,405 |
Summary of Repurchase Agreements Accounted for Secured Borrowings | The following table summarizes the Company’s repurchase agreements accounted for as secured borrowings at March 31, 2016: Remaining Contractual Maturity of the Agreements (in thousands) Overnight and Up to 30–90 Days Greater than GSE debentures and mortgage-related securities $ — $ — $ — $ 1,500,000 |
Junior Subordinated Debentures Outstanding | The following junior subordinated debentures were outstanding at March 31, 2016: Issuer Interest Rate of Capital Securities and Debentures Junior Subordinated Debentures Amount Outstanding Capital Securities Amount Outstanding Date of Original Issue Stated Maturity First Optional Redemption Date (dollars in thousands) New York Community Capital Trust V (BONUSES SM 6.000 % $ 144,746 $ 138,395 Nov. 4, 2002 Nov. 1, 2051 Nov. 4, 2007 (1) New York Community Capital Trust X 2.234 123,712 120,000 Dec. 14, 2006 Dec. 15, 2036 Dec. 15, 2011 (2) PennFed Capital Trust III 3.884 30,928 30,000 June 2, 2003 June 15, 2033 June 15, 2008 (2) New York Community Capital Trust XI 2.279 59,286 57,500 April 16, 2007 June 30, 2037 June 30, 2012 (2) Total junior subordinated debentures $ 358,672 $ 345,895 (1) Callable subject to certain conditions as described in the prospectus filed with the U.S. Securities and Exchange Commission (the “SEC”) on November 4, 2002. (2) Callable from this date forward. |
Mortgage Servicing Rights (Tabl
Mortgage Servicing Rights (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Changes in Residential and Participation Mortgage Servicing Rights | The following table sets forth the changes in the balances of residential MSRs and participation MSRs for the periods indicated: For the Three Months Ended March 31, 2016 2015 (in thousands) Residential Participation Residential Participation Carrying value, beginning of year $ 243,389 $ 4,345 $ 227,297 $ — Additions 7,948 1,250 15,017 — Increase (decrease) in fair value: Due to changes in interest rates (24,286 ) — (11,098 ) — Due to model assumption changes (1) (8,838 ) — — — Due to loan payoffs (8,750 ) — (10,216 ) — Due to passage of time and other changes (1,376 ) — (629 ) — Amortization — (414 ) — — Carrying value, end of period $ 208,087 $ 5,181 $ 220,371 $ — (1) Represents changes in fair value driven by changes to the inputs to the valuation model related to assumed prepayment speeds. |
Key Assumptions Used in Calculation of Fair Value of Residential Mortgage Servicing Rights | The following table presents the key assumptions used in calculating the fair value of the Company’s residential MSRs at the dates indicated: March 31, 2016 December 31, 2015 Expected Weighted Average Life 80 months 92 months Constant Prepayment Speed 9.68 % 7.35 % Discount Rate 10.02 10.01 Primary Mortgage Rate to Refinance 3.72 4.03 Cost to Service (per loan per year): Current $ 63 $ 63 30-59 days or less delinquent 213 213 60-89 days delinquent 313 313 90-119 days delinquent 413 413 120 days or more delinquent 563 563 |
Pension and Other Post-Retire32
Pension and Other Post-Retirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Pension and Post-Retirement Plans | The following table sets forth certain disclosures for the Company’s pension and post-retirement plans for the periods indicated: For the Three Months Ended March 31, 2016 2015 (in thousands) Pension Post-Retirement Pension Post-Retirement Components of net periodic (credit) expense: Interest cost $ 1,470 $ 160 $ 1,516 $ 175 Service cost — 1 — 1 Expected return on plan assets (3,906 ) — (4,390 ) — Amortization of prior-service costs — (62 ) — (62 ) Amortization of net actuarial loss 2,262 81 2,052 96 Net periodic (credit) expense $ (174 ) $ 180 $ (822 ) $ 210 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Summary of Activity for Restricted Stock Awards | The following table provides a summary of activity with regard to restricted stock awards in the three months ended March 31, 2016: For the Three Months Ended March 31, 2016 Number of Shares Weighted Average Unvested at beginning of year 6,362,117 $ 15.44 Granted 2,571,452 15.23 Vested (1,893,003 ) 15.38 Canceled (36,600 ) 15.27 Unvested at end of period 7,003,966 15.38 |
Summary of Activity for Stock Option Plans | The following table summarizes the changes that occurred during the three months ended at March 31, 2016 with regard to the Company’s outstanding stock options: For the Three Months Ended March 31, 2016 Number of Stock Weighted Average Stock options outstanding, beginning of year 2,400 $ 16.88 Exercised — — Expired/forfeited (2,400 ) 16.88 Stock options outstanding, end of period — — Options exercisable, end of period — — |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present assets and liabilities that were measured at fair value on a recurring basis as of March 31, 2016 and December 31, 2015, and that were included in the Company’s Consolidated Statements of Condition at those dates: Fair Value Measurements at March 31, 2016 (in thousands) Quoted Prices Significant Significant Netting (1) Total Assets: Securities Available for Sale: Municipal bonds $ — $ 800 $ — $ — $ 800 Capital trust notes — 6,841 — — 6,841 Preferred stock 97,908 29,206 — — 127,114 Mutual funds and common stock — 17,494 — — 17,494 Total securities available for sale $ 97,908 $ 54,341 $ — $ — $ 152,249 Other Assets: Loans held for sale $ — $ 471,276 $ — $ — $ 471,276 Mortgage servicing rights — — 208,087 — 208,087 Interest rate lock commitments — — 6,689 — 6,689 Derivative assets-other (2) 6,259 4,008 — (845 ) 9,422 Liabilities: Derivative liabilities $ (78 ) $ (7,182 ) $ — $ 5,760 $ (1,500 ) (1) Includes cash collateral received from, and paid to, counterparties. (2) Includes $3.7 million to purchase Treasury options. Fair Value Measurements at December 31, 2015 (in thousands) Quoted Prices Significant Significant Netting (1) Total Assets: Mortgage-Related Securities Available for Sale: GSE certificates $ — $ 53,852 $ — $ — $ 53,852 Total mortgage-related securities $ — $ 53,852 $ — $ — $ 53,852 Other Securities Available for Sale: Municipal bonds $ — $ 795 $ — $ — $ 795 Capital trust notes — 6,964 — — 6,964 Preferred stock 96,641 28,731 — — 125,372 Mutual funds and common stock — 17,272 — — 17,272 Total other securities $ 96,641 $ 53,762 $ — $ — $ 150,403 Total securities available for sale $ 96,641 $ 107,614 $ — $ — $ 204,255 Other Assets: Loans held for sale $ — $ 367,221 $ — $ — $ 367,221 Mortgage servicing rights — — 243,389 — 243,389 Interest rate lock commitments — — 2,526 — 2,526 Derivative assets-other (2) 1,875 1,342 — (1,024 ) 2,193 Liabilities: Derivative liabilities $ (1,539 ) $ (2,783 ) $ — $ 3,986 $ (336 ) (1) Includes cash collateral received from, and paid to, counterparties. (2) Includes $1.9 million to purchase Treasury options. |
Difference between Fair Value Option and Unpaid Principal Balance | The following table reflects the difference between the fair value carrying amount of loans held for sale, for which the Company has elected the fair value option, and the unpaid principal balance: March 31, 2016 December 31, 2015 (in thousands) Fair Value Aggregate Fair Value Fair Value Aggregate Fair Value Loans held for sale $ 471,276 $ 456,339 $ 14,937 $ 367,221 $ 359,587 $ 7,634 |
Changes in Fair Value of Loans Held For Sale | The following table presents the changes in fair value related to initial measurement, and the subsequent changes in fair value included in earnings, for loans held for sale and MSRs for the periods indicated: (Loss) Gain Included in Mortgage Banking Income from Changes in Fair Value (1) For the Three Months Ended March 31, (in thousands) 2016 2015 Loans held for sale $ 6,900 $ 4,369 Mortgage servicing rights (43,250 ) (21,943 ) Total loss $ (36,350 ) $ (17,574 ) (1) Does not include the effect of hedging activities, which is included in “Other non-interest income.” |
Rollforward of Financial Instruments Classified in Level Three of Valuation Hierarchy | The following tables present, for the three months ended March 31, 2016 and 2015, a roll-forward of the balance sheet amounts (including changes in fair value) for financial instruments classified in Level 3 of the valuation hierarchy: Total Realized/Unrealized Issuances Settlements Transfers Fair Value Change in Unrealized Gains/ Fair Value (Losses) Related to January 1, Income/ Comprehensive Instruments Held at (in thousands) 2016 (Loss) (Loss) Income March 31, 2016 Mortgage servicing rights $ 243,389 $ (43,250 ) $ — $ 7,948 $ — $ — $ 208,087 $ (37,093 ) Interest rate lock commitments 2,526 4,163 — — — — 6,689 6,586 Total Realized/Unrealized Issuances Settlements Transfers Fair Value Change in Unrealized Gains/ Fair Value (Losses) Related to January 1, Income/ Comprehensive Instruments Held at (in thousands) 2015 (Loss) (Loss) Income March 31, 2015 Mortgage servicing rights $ 227,297 $ (21,943 ) $ — $ 15,017 $ — $ — $ 220,371 $ (6,448 ) Interest rate lock commitments 4,397 4,465 — — — — 8,862 8,807 |
Significant Unobservable Inputs used in Fair Value Measurement | For Level 3 assets and liabilities measured at fair value on a recurring basis as of March 31, 2016, the significant unobservable inputs used in the fair value measurements were as follows: (dollars in thousands) Fair Value at Mar. 31, 2016 Valuation Technique Significant Unobservable Inputs Significant Unobservable Input Value Mortgage servicing rights $ 208,087 Discounted Cash Flow Weighted Average Constant Prepayment Rate (1) 9.68 % Weighted Average Discount Rate 10.02 Interest rate lock commitments 6,689 Discounted Cash Flow Weighted Average Closing Ratio 75.99 (1) Represents annualized loan repayment rate assumptions. |
Summary of Carrying Values, Estimated Fair Values and Fair Value Measurement Levels of Financial Instruments | The following tables present assets and liabilities that were measured at fair value on a non-recurring basis as of March 31, 2016 and December 31, 2015, and that were included in the Company’s Consolidated Statements of Condition at those dates: Fair Value Measurements at March 31, 2016 Using (in thousands) Quoted Prices in Significant Other Significant Total Fair Certain impaired loans (1) $ — $ — $ 1,657 $ 1,657 Other assets (2) — $ — 9,251 9,251 Total $ — $ — $ 10,908 $ 10,908 (1) Represents the fair value of certain impaired loans, based on the value of the collateral. (2) Represents the fair value of OREO, based on the appraised value of the collateral subsequent to its initial classification as OREO. Fair Value Measurements at December 31, 2015 Using (in thousands) Quoted Prices in Significant Other Significant Total Fair Certain impaired loans (1) $ — $ — $ 3,930 $ 3,930 Other assets (2) — — 7,982 7,982 Total $ — $ — $ 11,912 $ 11,912 (1) Represents the fair value of certain impaired loans, based on the value of the collateral. (2) Represents the fair value of OREO, based on the appraised value of the collateral subsequent to its initial classification as OREO. |
Assets and Liabilities Measured at Fair Value on Non-Recurring Basis | The following tables summarize the carrying values, estimated fair values, and fair value measurement levels of financial instruments that were not carried at fair value on the Company’s Consolidated Statements of Condition at March 31, 2016 and December 31, 2015: March 31, 2016 Fair Value Measurement Using (in thousands) Carrying Estimated Quoted Prices in Significant Significant Financial Assets: Cash and cash equivalents $ 650,880 $ 650,880 $ 650,880 $ — $ — Securities held to maturity 4,068,750 4,304,161 — 4,303,392 769 FHLB stock (1) 551,247 551,247 — 551,247 — Loans, net 38,453,936 38,914,681 — — 38,914,681 Financial Liabilities: Deposits $ 28,982,312 $ 28,986,770 $ 22,193,600 (2) $ 6,793,170 (3) $ — Borrowed funds 13,344,772 13,412,305 — 13,412,305 — (1) Carrying value and estimated fair value are at cost. (2) NOW and money market accounts, savings accounts, and non-interest-bearing accounts. (3) Certificates of deposit. December 31, 2015 Fair Value Measurement Using (in thousands) Carrying Estimated Quoted Prices in Significant Significant Financial Assets: Cash and cash equivalents $ 537,674 $ 537,674 $ 537,674 $ — $ — Securities held to maturity 5,969,390 6,108,529 — 6,107,697 832 FHLB stock (1) 663,971 663,971 — 663,971 — Loans, net 38,011,995 38,245,434 — — 38,245,434 Financial Liabilities: Deposits $ 28,426,758 $ 28,408,915 $ 23,114,271 (2) $ 5,294,644 (3) $ — Borrowed funds 15,748,405 15,685,616 — 15,685,616 — (1) Carrying value and estimated fair value are at cost. (2) NOW and money market accounts, savings accounts, and non-interest-bearing accounts. (3) Certificates of deposit. |
Derivative Financial Instrume35
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Financial Instruments | The following table sets forth information regarding the Company’s derivative financial instruments at March 31, 2016: March 31, 2016 (in thousands) Notional Unrealized (1) Gain Loss Treasury options $ 510,000 $ 1,072 $ 61 Eurodollar futures 50,000 — 17 Swaps 170,000 1,496 — Forward commitments to sell loans/mortgage-backed securities 1,084,000 128 6,861 Forward commitments to buy loans/mortgage-backed securities 715,000 3,880 321 Interest rate lock commitments 630,194 6,689 — Total derivatives $ 3,159,194 $ 13,265 $ 7,260 (1) Derivatives in a net gain position are recorded as “Other assets” and derivatives in a net loss position are recorded as “Other liabilities” in the Consolidated Statements of Condition. |
Effect of Derivative Instruments on Consolidated Statements of Income and Comprehensive Income | The following table sets forth the effect of derivative instruments on the Consolidated Statements of Income and Comprehensive Income for the periods indicated: Gain Included in Mortgage Banking Income for the Three Months Ended March 31, (in thousands) 2016 2015 Treasury options $ 7,231 $ 3,416 Treasury and Eurodollar futures 66 383 Swaps 1,496 — Forward commitments to buy/sell loans/mortgage-backed securities 869 1,772 Total gain $ 9,662 $ 5,571 |
Effect of Master Netting Arrangements on Presentation of Derivative Assets and Liabilities in Consolidated Statements of Financial Condition | The following tables present the effect of the master netting arrangements on the presentation of the derivative assets in the Consolidated Statements of Condition as of the dates indicated: March 31, 2016 (in thousands) Gross Amount (1) Gross Amount Net Amount of Gross Amounts Not Net Financial Cash Derivatives $ 16,956 $ 845 $ 16,111 $ — $ — $ 16,111 (1) Includes $3.7 million to purchase Treasury options. December 31, 2015 (in thousands) Gross Amount (1) Gross Amount Net Amount of Gross Amounts Not Net Financial Cash Derivatives $ 5,743 $ 1,024 $ 4,719 $ — $ — $ 4,719 (1) Includes $1.9 million to purchase Treasury options. The following tables present the effect the master netting arrangements had on the presentation of the derivative liabilities in the Consolidated Statements of Condition as of the dates indicated: March 31, 2016 (in thousands) Gross Amount Gross Amount Net Amount of Gross Amounts Not Net Financial Cash Derivatives $ 7,260 $ 5,760 $ 1,500 $ — $ — $ 1,500 December 31, 2015 (in thousands) Gross Amount Gross Amount Net Amount of Gross Amounts Not Net Financial Cash Derivatives $ 4,322 $ 3,986 $ 336 $ — $ — $ 336 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Results | The following tables provide a summary of the Company’s segment results for the three months ended March 31, 2016 and 2015, on an internally managed accounting basis: For the Three Months Ended March 31, 2016 (in thousands) Banking Residential Total Net interest income $ 324,917 $ 2,949 $ 327,866 Recoveries of loan losses (176 ) — (176 ) Non-Interest Income: Third party (1) 30,586 4,651 35,237 Inter-segment (4,112 ) 4,112 — Total non-interest income 26,474 8,763 35,237 Non-interest expense (2) 142,050 16,398 158,448 Income before income tax expense 209,517 (4,686 ) 204,831 Income tax expense (benefit) 76,815 (1,893 ) 74,922 Net income (loss) $ 132,702 $ (2,793 ) $ 129,909 Identifiable segment assets (period-end) $ 47,739,937 $ 775,635 $ 48,515,572 (1) Includes ancillary fee income. (2) Includes both direct and indirect expenses. For the Three Months Ended March 31, 2015 (in thousands) Banking Residential Total Net interest income $ 289,285 $ 3,483 $ 292,768 Provision for loan losses 7 — 7 Non-interest income: Third party (1) 33,154 19,080 52,234 Inter-segment (4,170 ) 4,170 — Total non-interest income 28,984 23,250 52,234 Non-interest expense (2) 140,151 16,685 156,836 Income before income tax expense 178,111 10,048 188,159 Income tax expense 64,890 4,010 68,900 Net income $ 113,221 $ 6,038 $ 119,259 Identifiable segment assets (period-end) $ 47,573,020 $ 678,695 $ 48,251,715 (1) Includes ancillary fee income. (2) Includes both direct and indirect expenses. |
Organization and Basis of Pre37
Organization and Basis of Presentation - Additional Information (Detail) | 3 Months Ended | ||
Mar. 31, 2016Location$ / shares | Dec. 31, 2015$ / shares | Nov. 23, 1993$ / shares | |
Organization and Basis Of Presentation [Line Items] | |||
Common stock, par | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 |
Description of nine stock splits | ($0.93 per share on a split-adjusted basis, reflecting the impact of nine stock splits between 1994 and 2004). | ||
New York Community Bank | |||
Organization and Basis Of Presentation [Line Items] | |||
Number of branches | 226 | ||
New York Community Bank | Directly Operated Banks | |||
Organization and Basis Of Presentation [Line Items] | |||
Number of branches | 2 | ||
New York Community Bank | Seven Divisional Banks | |||
Organization and Basis Of Presentation [Line Items] | |||
Number of branches | 224 | ||
New York Commercial Bank | |||
Organization and Basis Of Presentation [Line Items] | |||
Number of branches | 30 | ||
New York Commercial Bank | Atlantic Bank | |||
Organization and Basis Of Presentation [Line Items] | |||
Number of branches | 18 | ||
IPO | |||
Organization and Basis Of Presentation [Line Items] | |||
Shares issued, price per share | $ / shares | $ 25 | ||
IPO | Adjusted for Nine Stock Split | |||
Organization and Basis Of Presentation [Line Items] | |||
Shares issued, price per share | $ / shares | $ 0.93 |
Computation of Basic and Dilute
Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Net income | $ 129,909 | $ 119,259 | |
Less: Dividends paid on and earnings allocated to participating securities | (979) | (872) | |
Earnings applicable to common stock | $ 128,930 | $ 118,387 | |
Weighted average common shares outstanding | 484,605,397 | 441,990,338 | |
Basic earnings per common share | $ 0.27 | $ 0.27 | |
Potential dilutive common shares | [1] | 0 | 0 |
Total shares for diluted earnings per share computation | 484,605,397 | 441,990,338 | |
Diluted earnings per common share and common share equivalents | $ 0.27 | $ 0.27 | |
[1] | At March 31, 2016, there were no stock options outstanding. Options to purchase 32,400 shares of the Company's common stock that were outstanding as of March 31, 2015 at weighted average exercise prices of $18.15 per share were excluded from the computation of diluted EPS because their inclusion would have had an antidilutive effect. |
Computation of Basic and Dilu39
Computation of Basic and Diluted Earnings Per Share (Parenthetical) (Detail) - $ / shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Options to purchase shares that were not included in the respective computation of diluted EPS because their inclusion would have had an antidilutive effect | 0 | 32,400 |
Options to purchase shares that were not included in the respective computation of diluted EPS because their inclusion would have had an antidilutive effect, weighted average exercise prices | $ 18.15 |
Reclassifications of Accumulate
Reclassifications of Accumulated Other Comprehensive Loss (Detail) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016USD ($) | [1] | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Reclassifications, net of tax | $ (1,336) | |
Past-service cost | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Reclassifications, before tax | 62 | [2] |
Actuarial losses | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Reclassifications, before tax | (2,343) | [2] |
Amortization of defined benefit pension | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Reclassifications, before tax | (2,281) | |
Tax benefit | 945 | |
Reclassifications, net of tax | $ (1,336) | |
[1] | Amounts in parentheses indicate expense items. | |
[2] | Please see Note 9, "Pension and Other Post-Retirement Benefits," for additional information. |
Summary of Portfolio of Securit
Summary of Portfolio of Securities Available for Sale (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | $ 145,256 | $ 199,071 | |
Gross Unrealized Gain | 9,875 | 7,988 | |
Gross Unrealized Loss | 2,882 | 2,804 | |
Fair Value | 152,249 | 204,255 | |
Mortgage-Related Securities | GSE certificates | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | [1] | 53,820 | |
Gross Unrealized Gain | [1] | 33 | |
Gross Unrealized Loss | [1] | 1 | |
Fair Value | [1] | 53,852 | |
Other Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 145,251 | ||
Gross Unrealized Gain | 7,955 | ||
Gross Unrealized Loss | 2,803 | ||
Fair Value | 150,403 | ||
Other Securities | Municipal bonds | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 727 | 725 | |
Gross Unrealized Gain | 73 | 70 | |
Fair Value | 800 | 795 | |
Other Securities | Capital trust notes | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 9,448 | 9,444 | |
Gross Unrealized Loss | 2,607 | 2,480 | |
Fair Value | 6,841 | 6,964 | |
Other Securities | Preferred stock | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 118,205 | 118,205 | |
Gross Unrealized Gain | 9,184 | 7,415 | |
Gross Unrealized Loss | 275 | 248 | |
Fair Value | 127,114 | 125,372 | |
Other Securities | Mutual Funds and Common Stock | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | [2] | 16,876 | |
Gross Unrealized Gain | [2] | 618 | |
Fair Value | [2] | $ 17,494 | |
Other Securities | Common stock | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 16,877 | ||
Gross Unrealized Gain | 470 | ||
Gross Unrealized Loss | 75 | ||
Fair Value | $ 17,272 | ||
[1] | Government-sponsored enterprise. | ||
[2] | Primarily consists of mutual funds that are Community Reinvestment Act-qualified investments. |
Summary of Portfolio of Secur42
Summary of Portfolio of Securities Held to Maturity (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | |||
Schedule of Held-to-maturity Securities [Line Items] | |||||
Amortized Cost | $ 4,077,437 | [1] | $ 5,978,107 | [2] | |
Carrying Amount | 4,068,750 | [1] | 5,969,390 | [2] | |
Gross Unrealized Gain | 252,159 | [1] | 168,470 | [2] | |
Gross Unrealized Loss | 16,748 | [1] | 29,331 | [2] | |
Fair Value | 4,304,161 | [1] | 6,108,529 | [2] | |
Mortgage-Related Securities | |||||
Schedule of Held-to-maturity Securities [Line Items] | |||||
Amortized Cost | 3,486,101 | 3,594,861 | |||
Carrying Amount | 3,486,101 | 3,594,861 | |||
Gross Unrealized Gain | 216,930 | 130,063 | |||
Gross Unrealized Loss | 54 | 4,779 | |||
Fair Value | 3,702,977 | 3,720,145 | |||
Mortgage-Related Securities | GSE certificates | |||||
Schedule of Held-to-maturity Securities [Line Items] | |||||
Amortized Cost | 2,256,996 | 2,269,828 | |||
Carrying Amount | 2,256,996 | 2,269,828 | |||
Gross Unrealized Gain | 140,529 | 76,827 | |||
Gross Unrealized Loss | 54 | 4,722 | |||
Fair Value | 2,397,471 | 2,341,933 | |||
Mortgage-Related Securities | GSE CMOs | |||||
Schedule of Held-to-maturity Securities [Line Items] | |||||
Amortized Cost | [3] | 1,229,105 | 1,325,033 | ||
Carrying Amount | [3] | 1,229,105 | 1,325,033 | ||
Gross Unrealized Gain | [3] | 76,401 | 53,236 | ||
Gross Unrealized Loss | [3] | 57 | |||
Fair Value | [3] | 1,305,506 | 1,378,212 | ||
Other Securities | |||||
Schedule of Held-to-maturity Securities [Line Items] | |||||
Amortized Cost | 591,336 | 2,383,246 | |||
Carrying Amount | 582,649 | 2,374,529 | |||
Gross Unrealized Gain | 35,229 | 38,407 | |||
Gross Unrealized Loss | 16,694 | 24,552 | |||
Fair Value | 601,184 | 2,388,384 | |||
Other Securities | GSE debentures | |||||
Schedule of Held-to-maturity Securities [Line Items] | |||||
Amortized Cost | 368,784 | 2,159,856 | |||
Carrying Amount | 368,784 | 2,159,856 | |||
Gross Unrealized Gain | 19,461 | 23,892 | |||
Gross Unrealized Loss | 7,568 | ||||
Fair Value | 388,245 | 2,176,180 | |||
Other Securities | Corporate bonds | |||||
Schedule of Held-to-maturity Securities [Line Items] | |||||
Amortized Cost | 73,871 | 73,756 | |||
Carrying Amount | 73,871 | 73,756 | |||
Gross Unrealized Gain | 11,049 | 10,503 | |||
Fair Value | 84,920 | 84,259 | |||
Other Securities | Municipal bonds | |||||
Schedule of Held-to-maturity Securities [Line Items] | |||||
Amortized Cost | 74,419 | 75,317 | |||
Carrying Amount | 74,419 | 75,317 | |||
Gross Unrealized Gain | 1,661 | 262 | |||
Gross Unrealized Loss | 1,084 | ||||
Fair Value | 76,080 | 74,495 | |||
Other Securities | Capital trust notes | |||||
Schedule of Held-to-maturity Securities [Line Items] | |||||
Amortized Cost | 74,262 | 74,317 | |||
Carrying Amount | 65,575 | 65,600 | |||
Gross Unrealized Gain | 3,058 | 3,750 | |||
Gross Unrealized Loss | 16,694 | 15,900 | |||
Fair Value | $ 51,939 | $ 53,450 | |||
[1] | Held-to-maturity securities are reported at a carrying amount equal to amortized cost less the non-credit portion of OTTI recorded in Accumulated Other Comprehensive Loss ("AOCL"). At March 31, 2016, the non-credit portion of OTTI recorded in AOCL was $8.7 million, pre-tax. | ||||
[2] | Held-to-maturity securities are reported at a carrying amount equal to amortized cost less the non-credit portion of OTTI recorded in AOCL. At December 31, 2015, the non-credit portion of OTTI recorded in AOCL was $8.7 million, pre-tax. | ||||
[3] | Collateralized mortgage obligations. |
Summary of Portfolio of Secur43
Summary of Portfolio of Securities Held to Maturity (Parenthetical) (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Held-to-maturity Securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Non-credit portion of OTTI recorded in AOCL, pre-tax | $ 8.7 | $ 8.7 |
Securities - Additional Informa
Securities - Additional Information (Detail) | 3 Months Ended | |||
Mar. 31, 2016USD ($)Investment | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($)Investment | ||
Schedule of Investments [Line Items] | ||||
Federal Home Loan Bank stock, at cost | [1] | $ 551,247,000 | $ 663,971,000 | |
Gross realized losses | 0 | $ 0 | ||
Investment securities designated as having a continuous loss position for twelve months or more, unrealized losses | $ 19,100,000 | $ 24,900,000 | ||
Investment securities designated as having a continuous loss position for twelve months or more, percentage below collective amortized cost | 39.10% | 2.00% | ||
Investment securities designated as having a continuous loss position for twelve months or more, amortized cost | $ 48,800,000 | $ 1,200,000,000 | ||
Agency Debt Securities | ||||
Schedule of Investments [Line Items] | ||||
Number of investment securities designated as having a continuous loss position for twelve months or more | Investment | 7 | |||
Capital trust notes | ||||
Schedule of Investments [Line Items] | ||||
Number of investment securities designated as having a continuous loss position for twelve months or more | Investment | 5 | 5 | ||
Mortgage-Related Securities | ||||
Schedule of Investments [Line Items] | ||||
Number of investment securities designated as having a continuous loss position for twelve months or more | Investment | 3 | 2 | ||
[1] | Carrying value and estimated fair value are at cost. |
Summary of Gross Proceeds and G
Summary of Gross Proceeds and Gross Realized Gains from Sale of Available-for-Sale Securities (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Gain (Loss) on Investments [Line Items] | ||
Gross proceeds | $ 104,663 | $ 135,211 |
Gross realized gains | $ 163 | $ 211 |
Credit Loss Component of Other
Credit Loss Component of Other Than Temporary Impairment on Debt Securities (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |
Beginning OTTI credit loss amount | $ 198,766 |
Add: Initial other-than-temporary credit losses | 0 |
Subsequent other-than-temporary credit losses | 0 |
Amount previously recognized in AOCL | 0 |
Less: Realized losses for securities sold | 0 |
Securities intended or required to be sold | 0 |
Increase in expected cash flows on debt securities | 0 |
Ending OTTI credit loss amount | $ 198,766 |
Summary of Carrying Amount and
Summary of Carrying Amount and Estimated Fair Value of Held-to-Maturity Debt Securities and Amortized Cost and Estimated Fair Value of Available-for-Sale Debt Securities by Contractual Maturity (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | [2] | ||
Held-to-Maturity Securities: | |||||
Carrying Amount | $ 4,068,750 | [1] | $ 5,969,390 | ||
Held-to-Maturity Securities: | |||||
Due within one year | 328 | ||||
Due from one to five years | 452,138 | ||||
Due from five to ten years | 3,279,755 | ||||
Due after ten years | 571,940 | ||||
Total securities held to maturity | 4,304,161 | [1] | $ 6,108,529 | ||
Available-for-Sale Securities: | |||||
Due within one year | [3] | 154 | |||
Due from one to five years | [3] | 646 | |||
Due from five to ten years | [3] | 0 | |||
Due after ten years | [3] | 6,841 | |||
Total securities available for sale | [3] | 7,641 | |||
Mortgage-Related Securities | |||||
Held-to-Maturity Securities: | |||||
Due from one to five years | 358,897 | ||||
Due from five to ten years | 2,709,236 | ||||
Due after ten years | 417,968 | ||||
Carrying Amount | 3,486,101 | ||||
Available-for-Sale Securities: | |||||
Due from five to ten years | [3] | $ 0 | |||
Held-to-Maturity Securities, Average Yield | |||||
Due from one to five years, Average Yield | 3.74% | ||||
Due from five to ten years, Average Yield | 3.23% | ||||
Due after ten years, Average Yield | 2.93% | ||||
Total securities held to maturity, Average Yield | 3.25% | ||||
Available-for-Sale Securities, Average Yield | |||||
Due from five to ten years, Average Yield | [3] | 0.00% | |||
U.S. Treasury and GSE Obligations | |||||
Held-to-Maturity Securities: | |||||
Due from one to five years | $ 59,792 | ||||
Due from five to ten years | 308,992 | ||||
Carrying Amount | 368,784 | ||||
Available-for-Sale Securities: | |||||
Due from five to ten years | [3] | $ 0 | |||
Held-to-Maturity Securities, Average Yield | |||||
Due from one to five years, Average Yield | 4.17% | ||||
Due from five to ten years, Average Yield | 3.14% | ||||
Total securities held to maturity, Average Yield | 3.31% | ||||
Available-for-Sale Securities, Average Yield | |||||
Due from five to ten years, Average Yield | [3] | 0.00% | |||
State, county, and municipal | |||||
Held-to-Maturity Securities: | |||||
Due within one year | $ 327 | ||||
Due after ten years | 74,092 | ||||
Carrying Amount | 74,419 | ||||
Available-for-Sale Securities: | |||||
Due within one year | [3] | 149 | |||
Due from one to five years | [3] | 578 | |||
Due from five to ten years | [3] | 0 | |||
Total securities available for sale | [3] | $ 727 | |||
Held-to-Maturity Securities, Average Yield | |||||
Due within one year, Average Yield | [4] | 2.96% | |||
Due after ten years, Average Yield | [4] | 2.89% | |||
Total securities held to maturity, Average Yield | [4] | 2.89% | |||
Available-for-Sale Securities, Average Yield | |||||
Due within one year, Average Yield | [3],[4] | 6.39% | |||
Due from one to five years, Average Yield | [3],[4] | 6.56% | |||
Due from five to ten years, Average Yield | [3],[4] | 0.00% | |||
Total securities available for sale, Average Yield | [3],[4] | 6.52% | |||
Other Debt Securities | |||||
Held-to-Maturity Securities: | |||||
Due from five to ten years | [5] | $ 64,211 | |||
Due after ten years | [5] | 75,235 | |||
Carrying Amount | [5] | 139,446 | |||
Available-for-Sale Securities: | |||||
Due from five to ten years | [3],[5] | 0 | |||
Due after ten years | [3],[5] | 9,448 | |||
Total securities available for sale | [3],[5] | $ 9,448 | |||
Held-to-Maturity Securities, Average Yield | |||||
Due from five to ten years, Average Yield | 4.74% | ||||
Due after ten years, Average Yield | 5.14% | ||||
Total securities held to maturity, Average Yield | 4.96% | ||||
Available-for-Sale Securities, Average Yield | |||||
Due from five to ten years, Average Yield | [3] | 0.00% | |||
Due after ten years, Average Yield | [3] | 4.46% | |||
Total securities available for sale, Average Yield | [3] | 4.46% | |||
[1] | Held-to-maturity securities are reported at a carrying amount equal to amortized cost less the non-credit portion of OTTI recorded in Accumulated Other Comprehensive Loss ("AOCL"). At March 31, 2016, the non-credit portion of OTTI recorded in AOCL was $8.7 million, pre-tax. | ||||
[2] | Held-to-maturity securities are reported at a carrying amount equal to amortized cost less the non-credit portion of OTTI recorded in AOCL. At December 31, 2015, the non-credit portion of OTTI recorded in AOCL was $8.7 million, pre-tax. | ||||
[3] | As equity securities have no contractual maturity, they have been excluded from this table. | ||||
[4] | Not presented on a tax-equivalent basis. | ||||
[5] | Includes corporate bonds and capital trust notes |
Summary of Held-to-Maturity and
Summary of Held-to-Maturity and Available-for-Sale Securities Having Continuous Unrealized Loss Position (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | ||
Schedule of Investments [Line Items] | ||||
Temporarily Impaired Held-to-Maturity Securities, Total Unrealized Loss | $ 16,748 | [1] | $ 29,331 | [2] |
Temporarily Impaired Available-for-Sale Securities, Less than Twelve Months Fair Value | 16,997 | 105,702 | ||
Temporarily Impaired Available-for-Sale Securities, Less than Twelve Months Unrealized Loss | 295 | 356 | ||
Temporarily Impaired Available-for-Sale Securities, Twelve Months or Longer Fair Value | 4,861 | 4,997 | ||
Temporarily Impaired Available-for-Sale Securities, Twelve Months or Longer Unrealized Loss | 2,587 | 2,448 | ||
Temporarily Impaired Available-for-Sale Securities, Total Fair Value | 21,858 | 110,699 | ||
Temporarily Impaired Available-for-Sale Securities, Total Unrealized Loss | 2,882 | 2,804 | ||
Debt Securities | ||||
Schedule of Investments [Line Items] | ||||
Temporarily Impaired Held-to-Maturity Securities, Less than Twelve Months Fair Value | 32,522 | 923,130 | ||
Temporarily Impaired Held-to-Maturity Securities, Less than Twelve Months Unrealized Loss | 261 | 6,876 | ||
Temporarily Impaired Held-to-Maturity Securities, Twelve Months or Longer Fair Value | 24,839 | 1,201,558 | ||
Temporarily Impaired Held-to-Maturity Securities, Twelve Months or Longer Unrealized Loss | 16,487 | 22,455 | ||
Temporarily Impaired Held-to-Maturity Securities, Total Fair Value | 57,361 | 2,124,688 | ||
Temporarily Impaired Held-to-Maturity Securities, Total Unrealized Loss | 16,748 | 29,331 | ||
Debt Securities | Capital trust notes | ||||
Schedule of Investments [Line Items] | ||||
Temporarily Impaired Held-to-Maturity Securities, Less than Twelve Months Fair Value | 24,753 | 24,601 | ||
Temporarily Impaired Held-to-Maturity Securities, Less than Twelve Months Unrealized Loss | 247 | 399 | ||
Temporarily Impaired Held-to-Maturity Securities, Twelve Months or Longer Fair Value | 19,770 | 20,710 | ||
Temporarily Impaired Held-to-Maturity Securities, Twelve Months or Longer Unrealized Loss | 16,447 | 15,501 | ||
Temporarily Impaired Held-to-Maturity Securities, Total Fair Value | 44,523 | 45,311 | ||
Temporarily Impaired Held-to-Maturity Securities, Total Unrealized Loss | 16,694 | 15,900 | ||
Temporarily Impaired Available-for-Sale Securities, Less than Twelve Months Fair Value | 1,980 | 1,968 | ||
Temporarily Impaired Available-for-Sale Securities, Less than Twelve Months Unrealized Loss | 20 | 32 | ||
Temporarily Impaired Available-for-Sale Securities, Twelve Months or Longer Fair Value | 4,861 | 4,997 | ||
Temporarily Impaired Available-for-Sale Securities, Twelve Months or Longer Unrealized Loss | 2,587 | 2,448 | ||
Temporarily Impaired Available-for-Sale Securities, Total Fair Value | 6,841 | 6,965 | ||
Temporarily Impaired Available-for-Sale Securities, Total Unrealized Loss | 2,607 | 2,480 | ||
Debt Securities | GSE debentures | ||||
Schedule of Investments [Line Items] | ||||
Temporarily Impaired Held-to-Maturity Securities, Less than Twelve Months Fair Value | 547,484 | |||
Temporarily Impaired Held-to-Maturity Securities, Less than Twelve Months Unrealized Loss | 728 | |||
Temporarily Impaired Held-to-Maturity Securities, Twelve Months or Longer Fair Value | 1,176,949 | |||
Temporarily Impaired Held-to-Maturity Securities, Twelve Months or Longer Unrealized Loss | 6,840 | |||
Temporarily Impaired Held-to-Maturity Securities, Total Fair Value | 1,724,433 | |||
Temporarily Impaired Held-to-Maturity Securities, Total Unrealized Loss | 7,568 | |||
Debt Securities | GSE certificates | ||||
Schedule of Investments [Line Items] | ||||
Temporarily Impaired Held-to-Maturity Securities, Less than Twelve Months Fair Value | 7,769 | 299,019 | ||
Temporarily Impaired Held-to-Maturity Securities, Less than Twelve Months Unrealized Loss | 14 | 4,608 | ||
Temporarily Impaired Held-to-Maturity Securities, Twelve Months or Longer Fair Value | 5,069 | 3,899 | ||
Temporarily Impaired Held-to-Maturity Securities, Twelve Months or Longer Unrealized Loss | 40 | 114 | ||
Temporarily Impaired Held-to-Maturity Securities, Total Fair Value | 12,838 | 302,918 | ||
Temporarily Impaired Held-to-Maturity Securities, Total Unrealized Loss | 54 | 4,722 | ||
Temporarily Impaired Available-for-Sale Securities, Less than Twelve Months Fair Value | 51,959 | |||
Temporarily Impaired Available-for-Sale Securities, Less than Twelve Months Unrealized Loss | 1 | |||
Temporarily Impaired Available-for-Sale Securities, Total Fair Value | 51,959 | |||
Temporarily Impaired Available-for-Sale Securities, Total Unrealized Loss | 1 | |||
Debt Securities | Municipal bonds | ||||
Schedule of Investments [Line Items] | ||||
Temporarily Impaired Held-to-Maturity Securities, Less than Twelve Months Fair Value | 42,083 | |||
Temporarily Impaired Held-to-Maturity Securities, Less than Twelve Months Unrealized Loss | 1,084 | |||
Temporarily Impaired Held-to-Maturity Securities, Total Fair Value | 42,083 | |||
Temporarily Impaired Held-to-Maturity Securities, Total Unrealized Loss | 1,084 | |||
Debt Securities | GSE CMOs | ||||
Schedule of Investments [Line Items] | ||||
Temporarily Impaired Held-to-Maturity Securities, Less than Twelve Months Fair Value | 9,943 | |||
Temporarily Impaired Held-to-Maturity Securities, Less than Twelve Months Unrealized Loss | 57 | |||
Temporarily Impaired Held-to-Maturity Securities, Total Fair Value | 9,943 | |||
Temporarily Impaired Held-to-Maturity Securities, Total Unrealized Loss | 57 | |||
Equity securities | ||||
Schedule of Investments [Line Items] | ||||
Temporarily Impaired Available-for-Sale Securities, Less than Twelve Months Fair Value | 15,017 | 51,775 | ||
Temporarily Impaired Available-for-Sale Securities, Less than Twelve Months Unrealized Loss | 275 | 323 | ||
Temporarily Impaired Available-for-Sale Securities, Total Fair Value | 15,017 | 51,775 | ||
Temporarily Impaired Available-for-Sale Securities, Total Unrealized Loss | $ 275 | $ 323 | ||
[1] | Held-to-maturity securities are reported at a carrying amount equal to amortized cost less the non-credit portion of OTTI recorded in Accumulated Other Comprehensive Loss ("AOCL"). At March 31, 2016, the non-credit portion of OTTI recorded in AOCL was $8.7 million, pre-tax. | |||
[2] | Held-to-maturity securities are reported at a carrying amount equal to amortized cost less the non-credit portion of OTTI recorded in AOCL. At December 31, 2015, the non-credit portion of OTTI recorded in AOCL was $8.7 million, pre-tax. |
Composition of Loan Portfolio (
Composition of Loan Portfolio (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Non-Covered Loans | $ 36,153,668 | $ 35,740,489 | |||
Net deferred loan origination costs | 22,214 | 22,715 | |||
Allowance for losses on non-covered loans | (150,778) | (147,124) | $ (142,168) | $ (139,857) | |
Non-covered loans held for investment, net | 36,025,104 | 35,616,080 | |||
Covered loans | 1,986,054 | 2,060,089 | |||
Allowance for losses on covered loans | (28,498) | (31,395) | (43,942) | (45,481) | |
Covered loans, net | 1,957,556 | 2,028,694 | |||
Loans held for sale | 471,276 | 367,221 | |||
Total loans, net | $ 38,453,936 | $ 38,011,995 | |||
Non-Covered Loans, Percentage | 100.00% | 100.00% | |||
Multi-Family | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Non-Covered Loans | $ 26,406,585 | $ 25,971,629 | |||
Non-Covered Loans, Percentage | 73.04% | 72.67% | |||
Commercial Real Estate | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Non-Covered Loans | $ 7,676,793 | $ 7,857,204 | |||
Non-Covered Loans, Percentage | 21.23% | 21.98% | |||
One-to-four family | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Non-Covered Loans | $ 186,033 | $ 116,841 | |||
Covered loans | $ 1,853,643 | ||||
Non-Covered Loans, Percentage | 0.52% | 0.33% | |||
Acquisition, Development and Construction | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Non-Covered Loans | $ 344,645 | $ 311,676 | |||
Non-Covered Loans, Percentage | 0.95% | 0.87% | |||
Mortgage Receivable | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Non-Covered Loans | $ 34,614,056 | $ 34,257,350 | |||
Allowance for losses on non-covered loans | $ (126,185) | $ (124,478) | $ (119,178) | $ (122,616) | |
Non-Covered Loans, Percentage | 95.74% | 95.85% | |||
Commercial and Industrial | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Non-Covered Loans | [1] | $ 1,510,509 | $ 1,450,556 | ||
Commercial and Industrial | Other loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Non-Covered Loans | [2] | $ 1,140,835 | $ 1,085,529 | ||
Non-Covered Loans, Percentage | [2] | 3.16% | 3.04% | ||
Lease financing, unearned income | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Non-Covered Loans | $ 369,674 | $ 365,027 | |||
Non-Covered Loans, Percentage | 1.02% | 1.02% | |||
Other Commercial and Industrial Loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Non-Covered Loans | $ 1,510,509 | $ 1,450,556 | |||
Non-Covered Loans, Percentage | 4.18% | 4.06% | |||
Purchased Credit-Impaired Loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Non-Covered Loans | $ 6,474 | $ 8,344 | |||
Non-Covered Loans, Percentage | 0.02% | 0.02% | |||
Other | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Non-Covered Loans | $ 22,629 | $ 24,239 | |||
Non-Covered Loans, Percentage | 0.06% | 0.07% | |||
Total Other Loan Segment | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Non-Covered Loans | $ 1,533,138 | $ 1,474,795 | |||
Total Other Loan Segment | Other loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Non-Covered Loans | $ 1,539,612 | $ 1,483,139 | |||
Non-Covered Loans, Percentage | 4.26% | 4.15% | |||
[1] | Includes lease financing receivables, all of which were classified as "pass." | ||||
[2] | Includes specialty finance loans of $895.9 million and $880.7 million and other C&I loans of $614.7 million and $569.9 million, respectively, at March 31, 2016 and December 31, 2015. |
Composition of Loan Portfolio50
Composition of Loan Portfolio (Parenthetical) (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Non-Covered Loans | $ 36,153,668 | $ 35,740,489 | |
Commercial and Industrial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Non-Covered Loans | [1] | 1,510,509 | 1,450,556 |
Commercial and Industrial | Other loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Non-Covered Loans | [2] | 1,140,835 | 1,085,529 |
Commercial and Industrial | Specialty Finance Loans | Other loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Non-Covered Loans | 895,900 | 880,700 | |
Commercial and Industrial | Other Commercial and Industrial Loans | Other loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Non-Covered Loans | 614,700 | 569,900 | |
Lease financing, unearned income | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Unearned income | 43,964 | 43,553 | |
Non-Covered Loans | $ 369,674 | $ 365,027 | |
[1] | Includes lease financing receivables, all of which were classified as "pass." | ||
[2] | Includes specialty finance loans of $895.9 million and $880.7 million and other C&I loans of $614.7 million and $569.9 million, respectively, at March 31, 2016 and December 31, 2015. |
Loans - Additional Information
Loans - Additional Information (Detail) | 3 Months Ended | ||
Mar. 31, 2016USD ($)Investment | Mar. 31, 2015USD ($)Investment | Dec. 31, 2015USD ($) | |
Financing Receivable, Recorded Investment [Line Items] | |||
Outstanding loans to Executive officers, directors, principal shareholders, related interest and parties | $ 92,400,000 | $ 105,600,000 | |
Non-Covered Loans | $ 36,153,668,000 | 35,740,489,000 | |
Number of loans classified as a non-accrual TDRs | Investment | 4 | 0 | |
Covered loans | $ 1,986,054,000 | 2,060,089,000 | |
Provision for (recovery of) losses | (176,000) | $ 7,000 | |
FDIC indemnification expense | 2,300,000 | ||
FDIC indemnification income | 702,000 | ||
Financing Receivable Troubled Debt Restructurings Rate Reductions | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Delinquent loans selectively extended to certain borrowers, rate reductions, forbearance of arrears, and extension of maturity dates | 17,000,000 | ||
Financing Receivable Troubled Debt Restructurings Forbearance of Arrears | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Delinquent loans selectively extended to certain borrowers, rate reductions, forbearance of arrears, and extension of maturity dates | 2,900,000 | ||
Purchased Credit-Impaired Loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Non-Covered Loans | 6,474,000 | 8,344,000 | |
Purchased credit-impaired loans outstanding | 8,100,000 | ||
Principal shareholders | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Outstanding loans to Executive officers, directors, principal shareholders, related interest and parties | 0 | 0 | |
Covered Loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Current | 1,800,000,000 | ||
Provision for (recovery of) losses | (2,897,000) | $ 877,000 | |
Covered Loans | Loans 90 Days Or More Past Due | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Past Due | 138,735,000 | 137,182,000 | |
Covered Loans | Performing Financial Instruments | Financing Receivable Recorded Investment 30 to 89 days past due | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Past Due | 28,000,000 | ||
Covered Loans | Performing Financial Instruments | Loans 90 Days Or More Past Due | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Past Due | 138,700,000 | ||
Am Trust Bank and Desert Hills Bank | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans, net | $ 2,400,000,000 | $ 2,500,000,000 |
Quality of Non-Covered Loans (E
Quality of Non-Covered Loans (Excluding PCI Loans) (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Non-Covered Loans | $ 36,147,194 | $ 35,732,145 | |||
Multi-Family | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Non-Covered Loans | 26,406,585 | 25,971,629 | |||
Commercial Real Estate | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Non-Covered Loans | 7,676,793 | 7,857,204 | |||
One-to-four family | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Non-Covered Loans | 186,033 | 116,841 | |||
Acquisition, Development and Construction | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Non-Covered Loans | 344,645 | 311,676 | |||
Commercial and Industrial | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Non-Covered Loans | [1] | 1,510,509 | 1,450,556 | ||
Other | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Non-Covered Loans | 22,629 | 24,239 | |||
Non-Covered Loans | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Non- Accrual | 49,233 | [2] | 46,825 | [3] | |
Total Past Due | 52,418 | 53,430 | |||
Current | 36,094,776 | 35,678,715 | |||
Non-Covered Loans | Financing Receivable, 30-89 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 3,185 | 6,605 | |||
Non-Covered Loans | Multi-Family | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Non- Accrual | 15,900 | [2] | 13,904 | [3] | |
Total Past Due | 16,660 | 18,722 | |||
Current | 26,389,925 | 25,952,907 | |||
Non-Covered Loans | Multi-Family | Financing Receivable, 30-89 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 760 | 4,818 | |||
Non-Covered Loans | Commercial Real Estate | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Non- Accrual | 11,863 | [2] | 14,920 | [3] | |
Total Past Due | 11,863 | 15,098 | |||
Current | 7,664,930 | 7,842,106 | |||
Non-Covered Loans | Commercial Real Estate | Financing Receivable, 30-89 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 178 | ||||
Non-Covered Loans | One-to-four family | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Non- Accrual | 11,172 | [2] | 12,259 | [3] | |
Total Past Due | 11,552 | 13,376 | |||
Current | 174,481 | 103,465 | |||
Non-Covered Loans | One-to-four family | Financing Receivable, 30-89 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 380 | 1,117 | |||
Non-Covered Loans | Acquisition, Development and Construction | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Non- Accrual | [3] | 27 | |||
Total Past Due | 27 | ||||
Current | 344,645 | 311,649 | |||
Non-Covered Loans | Commercial and Industrial | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Non- Accrual | [1] | 8,940 | [2] | 4,473 | [3] |
Total Past Due | [1] | 10,820 | 4,473 | ||
Current | [1] | 1,499,689 | 1,446,083 | ||
Non-Covered Loans | Commercial and Industrial | Financing Receivable, 30-89 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | [1] | 1,880 | |||
Non-Covered Loans | Other | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Non- Accrual | 1,358 | [2] | 1,242 | [3] | |
Total Past Due | 1,523 | 1,734 | |||
Current | 21,106 | 22,505 | |||
Non-Covered Loans | Other | Financing Receivable, 30-89 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | $ 165 | $ 492 | |||
[1] | Includes lease financing receivables, all of which were current. | ||||
[2] | Excludes $954,000 of non-covered PCI loans that were 90 days or more past due. | ||||
[3] | Excludes $969,000 of non-covered PCI loans that were 90 days or more past due. |
Quality of Non-Covered Loans 53
Quality of Non-Covered Loans (Excluding PCI Loans) (Parenthetical) (Detail) - Non-Covered Loans - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 52,418 | $ 53,430 |
Loans 90 Days Or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 954 | $ 969 |
Non-Covered Loan Portfolio by C
Non-Covered Loan Portfolio by Credit Quality Indicator (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable, Recorded Investment [Line Items] | |||
Non-Covered Loans | $ 36,153,668 | $ 35,740,489 | |
Multi-Family | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Non-Covered Loans | 26,406,585 | 25,971,629 | |
Multi-Family | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Non-Covered Loans | 26,371,966 | 25,936,423 | |
Multi-Family | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Non-Covered Loans | 5,992 | 6,305 | |
Multi-Family | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Non-Covered Loans | 28,627 | 28,901 | |
Commercial Real Estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Non-Covered Loans | 7,676,793 | 7,857,204 | |
Commercial Real Estate | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Non-Covered Loans | 7,635,582 | 7,839,127 | |
Commercial Real Estate | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Non-Covered Loans | 30,058 | 3,883 | |
Commercial Real Estate | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Non-Covered Loans | 11,153 | 14,194 | |
One-to-four family | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Non-Covered Loans | 186,033 | 116,841 | |
One-to-four family | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Non-Covered Loans | 174,862 | 104,582 | |
One-to-four family | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Non-Covered Loans | 11,171 | 12,259 | |
Acquisition, Development and Construction | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Non-Covered Loans | 344,645 | 311,676 | |
Acquisition, Development and Construction | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Non-Covered Loans | 343,835 | 309,039 | |
Acquisition, Development and Construction | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Non-Covered Loans | 810 | ||
Acquisition, Development and Construction | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Non-Covered Loans | 2,637 | ||
Mortgage Receivable | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Non-Covered Loans | 34,614,056 | 34,257,350 | |
Mortgage Receivable | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Non-Covered Loans | 34,526,245 | 34,189,171 | |
Mortgage Receivable | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Non-Covered Loans | 36,860 | 10,188 | |
Mortgage Receivable | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Non-Covered Loans | 50,951 | 57,991 | |
Commercial and Industrial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Non-Covered Loans | [1] | 1,510,509 | 1,450,556 |
Commercial and Industrial | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Non-Covered Loans | [1] | 1,483,734 | 1,433,778 |
Commercial and Industrial | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Non-Covered Loans | [1] | 1,632 | 11,771 |
Commercial and Industrial | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Non-Covered Loans | [1] | 25,143 | 5,007 |
Other | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Non-Covered Loans | 22,629 | 24,239 | |
Other | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Non-Covered Loans | 21,271 | 22,996 | |
Other | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Non-Covered Loans | 1,358 | 1,243 | |
Total Other Loan Segment | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Non-Covered Loans | 1,533,138 | 1,474,795 | |
Total Other Loan Segment | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Non-Covered Loans | 1,505,005 | 1,456,774 | |
Total Other Loan Segment | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Non-Covered Loans | 1,632 | 11,771 | |
Total Other Loan Segment | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Non-Covered Loans | $ 26,501 | $ 6,250 | |
[1] | Includes lease financing receivables, all of which were classified as "pass." |
Information Regarding Troubled
Information Regarding Troubled Debt Restructurings (Detail) - Non-Covered Loans - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Modifications [Line Items] | ||
Troubled debt restructurings | $ 19,858 | $ 12,155 |
Multi-Family | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled debt restructurings | 12,994 | 2,652 |
Commercial Real Estate | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled debt restructurings | 2,558 | 6,370 |
One-to-four family | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled debt restructurings | 1,512 | 987 |
Acquisition, Development and Construction | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled debt restructurings | 27 | |
Commercial and Industrial | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled debt restructurings | 2,583 | 1,906 |
Other loans | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled debt restructurings | 211 | 213 |
Accruing | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled debt restructurings | 2,632 | 2,759 |
Accruing | Multi-Family | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled debt restructurings | 2,008 | 2,017 |
Accruing | Commercial Real Estate | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled debt restructurings | 115 | |
Accruing | Commercial and Industrial | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled debt restructurings | 624 | 627 |
Non-Accrual | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled debt restructurings | 17,226 | 9,396 |
Non-Accrual | Multi-Family | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled debt restructurings | 10,986 | 635 |
Non-Accrual | Commercial Real Estate | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled debt restructurings | 2,558 | 6,255 |
Non-Accrual | One-to-four family | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled debt restructurings | 1,512 | 987 |
Non-Accrual | Acquisition, Development and Construction | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled debt restructurings | 27 | |
Non-Accrual | Commercial and Industrial | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled debt restructurings | 1,959 | 1,279 |
Non-Accrual | Other loans | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled debt restructurings | $ 211 | $ 213 |
Summary of Financial Effects of
Summary of Financial Effects of Troubled Debt Restructurings (Detail) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016USD ($)Investment | Mar. 31, 2015Investment | |
Financing Receivable, Modifications [Line Items] | ||
Number of loans classified as a non-accrual TDRs | Investment | 4 | 0 |
Trouble debt restructuring, charge-off amount | $ | $ 47 | |
Capitalized interest | $ | $ 4 | |
One-to-four family | ||
Financing Receivable, Modifications [Line Items] | ||
Number of loans classified as a non-accrual TDRs | Investment | 2 | |
Weighted Average Interest Rate, Pre-Modification | 3.52% | |
Weighted Average Interest Rate, Post-Modification | 3.29% | |
Capitalized interest | $ | $ 4 | |
Commercial and Industrial | ||
Financing Receivable, Modifications [Line Items] | ||
Number of loans classified as a non-accrual TDRs | Investment | 1 | |
Weighted Average Interest Rate, Pre-Modification | 3.30% | |
Weighted Average Interest Rate, Post-Modification | 3.10% | |
Trouble debt restructuring, charge-off amount | $ | $ 47 | |
Multi-Family | ||
Financing Receivable, Modifications [Line Items] | ||
Number of loans classified as a non-accrual TDRs | Investment | 1 | |
Weighted Average Interest Rate, Pre-Modification | 4.63% | |
Weighted Average Interest Rate, Post-Modification | 4.00% |
Covered Loans Acquired in AmTru
Covered Loans Acquired in AmTrust and Desert Hills Acquisitions (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Covered loans | $ 1,986,054 | $ 2,060,089 |
Percent of Covered Loans | 100.00% | |
One-to-four family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Covered loans | $ 1,853,643 | |
Percent of Covered Loans | 93.30% | |
Other loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Covered loans | $ 132,411 | |
Percent of Covered Loans | 6.70% |
Changes in Accretable Yield for
Changes in Accretable Yield for Covered Loans (Detail) - Covered Loans $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Balance at beginning of period | $ 803,145 |
Reclassification from non-accretable difference | 25,261 |
Accretion | (33,320) |
Balance at end of period | $ 795,086 |
Covered Loans Thirty to Eighty
Covered Loans Thirty to Eighty Nine Days, Ninety Days or More Past Due (Detail) - Covered Loans - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Loans 90 Days Or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 138,735 | $ 137,182 |
Loans 90 Days Or More Past Due | One-to-four family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 131,876 | 130,626 |
Loans 90 Days Or More Past Due | Other loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 6,859 | 6,556 |
Financing Receivable, 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 28,007 | 32,824 |
Financing Receivable, 30-89 Days Past Due | One-to-four family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 26,849 | 30,455 |
Financing Receivable, 30-89 Days Past Due | Other loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 1,158 | $ 2,369 |
Activity in Allowance for Losse
Activity in Allowance for Losses for Non-Covered Loans and Covered Loans (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Allowance for Loan Losses, Individually evaluated for impairment | $ 0 | $ 0 |
Allowance for Loan Losses, Collectively evaluated for impairment | 149,061 | 145,196 |
Allowance for Loan Losses | 179,276 | 178,519 |
Acquired loans with deteriorated credit quality | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Allowance for Loan Losses, other | 30,215 | 33,323 |
Mortgage Receivable | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Allowance for Loan Losses, Individually evaluated for impairment | 0 | 0 |
Allowance for Loan Losses, Collectively evaluated for impairment | 124,639 | 122,712 |
Allowance for Loan Losses | 138,064 | 137,295 |
Mortgage Receivable | Acquired loans with deteriorated credit quality | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Allowance for Loan Losses, other | 13,425 | 14,583 |
Other loans | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Allowance for Loan Losses, Individually evaluated for impairment | 0 | 0 |
Allowance for Loan Losses, Collectively evaluated for impairment | 24,422 | 22,484 |
Allowance for Loan Losses | 41,212 | 41,224 |
Other loans | Acquired loans with deteriorated credit quality | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Allowance for Loan Losses, other | $ 16,790 | $ 18,740 |
Additional Information Regardin
Additional Information Regarding Methods used to Evaluate Loan Portfolio for Impairment (Detail) - Additional Information Loan Portfolio - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Receivable, Individually evaluated for impairment | $ 36,134 | $ 51,954 |
Loans Receivable, Collectively evaluated for impairment | 36,111,060 | 35,680,191 |
Total loans, net | 38,139,722 | 37,800,578 |
Acquired loans with deteriorated credit quality | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Receivable, other | 1,992,528 | 2,068,433 |
Mortgage Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Receivable, Individually evaluated for impairment | 27,063 | 47,480 |
Loans Receivable, Collectively evaluated for impairment | 34,586,993 | 34,209,870 |
Total loans, net | 36,473,542 | 36,181,605 |
Mortgage Receivable | Acquired loans with deteriorated credit quality | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Receivable, other | 1,859,486 | 1,924,255 |
Other loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Receivable, Individually evaluated for impairment | 9,071 | 4,474 |
Loans Receivable, Collectively evaluated for impairment | 1,524,067 | 1,470,321 |
Total loans, net | 1,666,180 | 1,618,973 |
Other loans | Acquired loans with deteriorated credit quality | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Receivable, other | $ 133,042 | $ 144,178 |
Activity in Allowance for Los62
Activity in Allowance for Losses on Non-Covered Loans (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Valuation Allowance [Line Items] | |||
Balance, beginning of period | $ 147,124 | $ 139,857 | |
Charge-offs | (194) | (798) | |
Recoveries | 1,127 | 1,563 | |
Transfer from the allowance for losses on covered loans | [1] | 2,416 | |
Provision for (recovery of) non-covered loan losses | (176) | 7 | |
Balance, end of period | 150,778 | 142,168 | |
Non-Covered Loans | |||
Valuation Allowance [Line Items] | |||
Provision for (recovery of) non-covered loan losses | 2,721 | (870) | |
Mortgage Receivable | |||
Valuation Allowance [Line Items] | |||
Balance, beginning of period | 124,478 | 122,616 | |
Charge-offs | (46) | (485) | |
Recoveries | 879 | 1,400 | |
Transfer from the allowance for losses on covered loans | [1] | 2,250 | |
Balance, end of period | 126,185 | 119,178 | |
Mortgage Receivable | Non-Covered Loans | |||
Valuation Allowance [Line Items] | |||
Provision for (recovery of) non-covered loan losses | 874 | (6,603) | |
Other loans | |||
Valuation Allowance [Line Items] | |||
Balance, beginning of period | 22,646 | 17,241 | |
Charge-offs | (148) | (313) | |
Recoveries | 248 | 163 | |
Transfer from the allowance for losses on covered loans | [1] | 166 | |
Balance, end of period | 24,593 | 22,990 | |
Other loans | Non-Covered Loans | |||
Valuation Allowance [Line Items] | |||
Provision for (recovery of) non-covered loan losses | $ 1,847 | $ 5,733 | |
[1] | Represents the allowance associated with $14.2 million of loans acquired in the Desert Hills transaction that were transferred from covered loans to non-covered loans upon expiration of the related FDIC loss sharing agreement. |
Activity in Allowance for Los63
Activity in Allowance for Losses on Non-Covered Loans (Parenthetical) (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2015USD ($) | |
Am Trust Bank and Desert Hills Bank | |
Valuation Allowance [Line Items] | |
Allowance associated on loans acquired | $ 14.2 |
Additional Information about Im
Additional Information about Impaired Loans (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with no related allowance, Recorded Investment | $ 36,134 | $ 51,954 |
Impaired loans with no related allowance, Unpaid Principal Balance | 44,801 | 61,617 |
Impaired loans with no related allowance, Average Recorded Investment | 44,044 | 67,805 |
Impaired loans with no related allowance, Interest Income Recognized | 335 | 2,044 |
Multi-Family | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with no related allowance, Recorded Investment | 13,002 | 27,464 |
Impaired loans with no related allowance, Unpaid Principal Balance | 15,054 | 29,379 |
Impaired loans with no related allowance, Average Recorded Investment | 20,233 | 30,965 |
Impaired loans with no related allowance, Interest Income Recognized | 208 | 1,320 |
Commercial Real Estate | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with no related allowance, Recorded Investment | 11,203 | 13,995 |
Impaired loans with no related allowance, Unpaid Principal Balance | 16,899 | 15,480 |
Impaired loans with no related allowance, Average Recorded Investment | 12,599 | 25,066 |
Impaired loans with no related allowance, Interest Income Recognized | 54 | 383 |
One-to-four family | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with no related allowance, Recorded Investment | 2,859 | 3,384 |
Impaired loans with no related allowance, Unpaid Principal Balance | 3,373 | 8,929 |
Impaired loans with no related allowance, Average Recorded Investment | 3,122 | 2,302 |
Impaired loans with no related allowance, Interest Income Recognized | 23 | 75 |
Acquisition, Development and Construction | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with no related allowance, Recorded Investment | 2,637 | |
Impaired loans with no related allowance, Unpaid Principal Balance | 3,035 | |
Impaired loans with no related allowance, Average Recorded Investment | 1,318 | 1,086 |
Impaired loans with no related allowance, Interest Income Recognized | 148 | |
Other loans | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with no related allowance, Recorded Investment | 9,070 | 4,474 |
Impaired loans with no related allowance, Unpaid Principal Balance | 9,475 | 4,794 |
Impaired loans with no related allowance, Average Recorded Investment | 6,772 | 8,386 |
Impaired loans with no related allowance, Interest Income Recognized | $ 50 | $ 118 |
Allowance for Loan Losses - Add
Allowance for Loan Losses - Additional Information (Detail) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with an allowance recorded, Recorded Investment | $ 0 | $ 0 |
Activity in Allowance for Los66
Activity in Allowance for Losses on Covered Loans (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Valuation Allowance [Line Items] | |||
Balance, beginning of period | $ 31,395 | $ 45,481 | |
Provision for (recovery of) losses | (176) | 7 | |
Transfer to the allowance for losses on non-covered loans | [1] | (2,416) | |
Balance, end of period | 28,498 | 43,942 | |
Covered | |||
Valuation Allowance [Line Items] | |||
Provision for (recovery of) losses | $ (2,897) | $ 877 | |
[1] | Represents the allowance associated with $14.2 million of loans acquired in the Desert Hills transaction that were transferred from covered loans to non-covered loans upon expiration of the related FDIC loss sharing agreement. |
Activity in Allowance for Los67
Activity in Allowance for Losses on Covered Loans (Parenthetical) (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2015USD ($) | |
Am Trust Bank and Desert Hills Bank | |
Valuation Allowance [Line Items] | |
Allowance associated on loans acquired | $ 14.2 |
Summary of Borrowed Funds (Deta
Summary of Borrowed Funds (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Debt Outstanding [Line Items] | ||
FHLB advances | $ 10,933,100 | $ 13,463,800 |
Repurchase agreements | 1,500,000 | 1,500,000 |
Fed funds purchased | 553,000 | 426,000 |
Total wholesale borrowings | 12,986,100 | 15,389,800 |
Junior subordinated debentures | 358,672 | 358,605 |
Total borrowed funds | $ 13,344,772 | $ 15,748,405 |
Summary of Repurchase Agreement
Summary of Repurchase Agreements Accounted for Secured Borrowings (Detail) $ in Thousands | Mar. 31, 2016USD ($) |
Greater than 90 Days | GSE debentures and mortgage-related securities | |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |
Remaining Contractual Maturity of the Agreements | $ 1,500,000 |
Borrowed Funds - Additional Inf
Borrowed Funds - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Junior subordinated debentures | $ 358,672 | $ 358,605 |
Junior Subordinated Debentures
Junior Subordinated Debentures Outstanding (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Dec. 31, 2015 | ||
Subordinated Borrowing [Line Items] | |||
Junior Subordinated Debentures Amount Outstanding | $ 358,672 | $ 358,605 | |
Capital Securities Amount Outstanding | $ 345,895 | ||
New York Community Capital Trust V (BONUSESSM Units) | |||
Subordinated Borrowing [Line Items] | |||
Interest Rate of Capital Securities and Debentures | 6.00% | ||
Junior Subordinated Debentures Amount Outstanding | $ 144,746 | ||
Capital Securities Amount Outstanding | $ 138,395 | ||
Date of Original Issue | Nov. 4, 2002 | ||
Stated Maturity | Nov. 1, 2051 | ||
First Optional Redemption Date | [1] | Nov. 4, 2007 | |
New York Community Capital Trust X | |||
Subordinated Borrowing [Line Items] | |||
Interest Rate of Capital Securities and Debentures | 2.234% | ||
Junior Subordinated Debentures Amount Outstanding | $ 123,712 | ||
Capital Securities Amount Outstanding | $ 120,000 | ||
Date of Original Issue | Dec. 14, 2006 | ||
Stated Maturity | Dec. 15, 2036 | ||
First Optional Redemption Date | [2] | Dec. 15, 2011 | |
PennFed Capital Trust III | |||
Subordinated Borrowing [Line Items] | |||
Interest Rate of Capital Securities and Debentures | 3.884% | ||
Junior Subordinated Debentures Amount Outstanding | $ 30,928 | ||
Capital Securities Amount Outstanding | $ 30,000 | ||
Date of Original Issue | Jun. 2, 2003 | ||
Stated Maturity | Jun. 15, 2033 | ||
First Optional Redemption Date | [2] | Jun. 15, 2008 | |
New York Community Capital Trust XI | |||
Subordinated Borrowing [Line Items] | |||
Interest Rate of Capital Securities and Debentures | 2.279% | ||
Junior Subordinated Debentures Amount Outstanding | $ 59,286 | ||
Capital Securities Amount Outstanding | $ 57,500 | ||
Date of Original Issue | Apr. 16, 2007 | ||
Stated Maturity | Jun. 30, 2037 | ||
First Optional Redemption Date | [2] | Jun. 30, 2012 | |
[1] | Callable subject to certain conditions as described in the prospectus filed with the U.S. Securities and Exchange Commission (the "SEC") on November 4, 2002. | ||
[2] | Callable from this date forward. |
Mortgage Servicing Rights - Add
Mortgage Servicing Rights - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||
Mortgage servicing rights | $ 213,268,000 | $ 247,734,000 |
Mortgage Receivable | ||
Finite-Lived Intangible Assets [Line Items] | ||
Unpaid principal balance of loans serviced for others | 24,600,000,000 | $ 24,200,000,000 |
Impairment of intangible assets | $ 0 |
Changes in Residential and Part
Changes in Residential and Participation Mortgage Servicing Rights (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Finite-Lived Intangible Assets [Line Items] | |||
Carrying value, beginning of period | $ 247,734 | ||
Carrying value, end of period | 213,268 | ||
Mortgage Servicing Rights Residential | |||
Finite-Lived Intangible Assets [Line Items] | |||
Carrying value, beginning of period | 243,389 | $ 227,297 | |
Additions | 7,948 | 15,017 | |
Due to changes in interest rates | (24,286) | (11,098) | |
Due to model assumption changes | [1] | (8,838) | |
Due to loan payoffs | (8,750) | (10,216) | |
Due to passage of time and other changes | (1,376) | (629) | |
Carrying value, end of period | 208,087 | $ 220,371 | |
Mortgage Servicing Rights Participation | |||
Finite-Lived Intangible Assets [Line Items] | |||
Carrying value, beginning of period | 4,345 | ||
Additions | 1,250 | ||
Amortization | (414) | ||
Carrying value, end of period | $ 5,181 | ||
[1] | Represents changes in fair value driven by changes to the inputs to the valuation model related to assumed prepayment speeds. |
Key Assumptions Used in Calcula
Key Assumptions Used in Calculating Fair Value of Residential Mortgage Servicing Rights (Detail) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Mortgage Loans on Real Estate [Line Items] | ||
Expected Weighted Average Life | 80 months | 92 months |
Constant Prepayment Speed | 9.68% | 7.35% |
Discount Rate | 10.02% | 10.01% |
Primary Mortgage Rate to Refinance | 3.72% | 4.03% |
Cost to service per loan per year, current | $ 63 | $ 63 |
30-59 days or less delinquent | ||
Mortgage Loans on Real Estate [Line Items] | ||
Cost to service per loan per year | 213 | 213 |
60-89 days delinquent | ||
Mortgage Loans on Real Estate [Line Items] | ||
Cost to service per loan per year | 313 | 313 |
90-119 days delinquent | ||
Mortgage Loans on Real Estate [Line Items] | ||
Cost to service per loan per year | 413 | 413 |
120 days or more delinquent | ||
Mortgage Loans on Real Estate [Line Items] | ||
Cost to service per loan per year | $ 563 | $ 563 |
Pension and Post-Retirement Pla
Pension and Post-Retirement Plans (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Pension Benefits | ||
Components of net periodic (credit) expense: | ||
Interest cost | $ 1,470 | $ 1,516 |
Expected return on plan assets | (3,906) | (4,390) |
Amortization of net actuarial loss | 2,262 | 2,052 |
Net periodic (credit) expense | (174) | (822) |
Post-Retirement Benefits | ||
Components of net periodic (credit) expense: | ||
Interest cost | 160 | 175 |
Service cost | 1 | 1 |
Amortization of prior-service costs | (62) | (62) |
Amortization of net actuarial loss | 81 | 96 |
Net periodic (credit) expense | $ 180 | $ 210 |
Pension and Other Post-Retire76
Pension and Other Post-Retirement Benefits - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Post-Retirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected contribution to defined benefit plan | $ 1,300,000 |
Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected contribution to defined benefit plan | $ 0 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for grant | 9,695,260 | ||
Shares granted | 2,571,452 | ||
Shares granted, weighted average grant date fair value | $ 15.23 | ||
Unrecognized compensation cost relating to unvested restricted stock | $ 101.3 | ||
Unrecognized compensation cost relating to unvested restricted stock, recognition period (in years) | 3 years 7 months 6 days | ||
Stock options outstanding | 0 | 2,400 | |
Stock options exercised | 0 | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted, vesting period | 5 years | ||
Compensation and benefits expense | $ 8.2 | $ 7.2 | |
Two Thousand Twelve Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares transferred | 1,030,673 | ||
Stock Incentive Plan Twenty Twelve | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted | 2,571,452 | ||
Shares granted, weighted average grant date fair value | $ 15.23 |
Summary of Activity for Restric
Summary of Activity for Restricted Stock Awards (Detail) | 3 Months Ended |
Mar. 31, 2016$ / sharesshares | |
Number of Shares | |
Unvested at beginning of year | shares | 6,362,117 |
Granted | shares | 2,571,452 |
Vested | shares | (1,893,003) |
Canceled | shares | (36,600) |
Unvested at end of period | shares | 7,003,966 |
Weighted Average Grant Date Fair Value | |
Unvested at beginning of year | $ / shares | $ 15.44 |
Granted | $ / shares | 15.23 |
Vested | $ / shares | 15.38 |
Canceled | $ / shares | 15.27 |
Unvested at end of period | $ / shares | $ 15.38 |
Summary of Activity for Stock O
Summary of Activity for Stock Option Plans (Detail) | 3 Months Ended |
Mar. 31, 2016$ / sharesshares | |
Number of Stock Options | |
Stock options outstanding, beginning of year | 2,400 |
Exercised | 0 |
Expired/forfeited | (2,400) |
Stock options outstanding, end of period | 0 |
Options exercisable, end of period | 0 |
Weighted Average Exercise Price | |
Stock options outstanding, beginning of year | $ / shares | $ 16.88 |
Exercised | $ / shares | 0 |
Expired/forfeited | $ / shares | 16.88 |
Options exercisable, end of period | $ / shares | $ 0 |
Assets and Liabilities Measured
Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Mutual funds and common stock | $ 152,249 | $ 204,255 | |||
Loans held for sale | 471,276 | 367,221 | |||
Mortgage servicing rights | 213,268 | 247,734 | |||
Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Mutual funds and common stock | 152,249 | 204,255 | |||
Loans held for sale | 471,276 | 367,221 | |||
Mortgage servicing rights | 208,087 | 243,389 | |||
Interest rate lock commitments | 6,689 | 2,526 | |||
Derivative assets-other | 9,422 | [1] | 2,193 | [2] | |
Derivative liabilities | (1,500) | (336) | |||
Fair Value, Measurements, Recurring | Municipal bonds | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Mutual funds and common stock | 800 | ||||
Fair Value, Measurements, Recurring | Capital trust notes | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Mutual funds and common stock | 6,841 | ||||
Fair Value, Measurements, Recurring | Preferred stock | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Mutual funds and common stock | 127,114 | ||||
Fair Value, Measurements, Recurring | Mutual Funds and Common Stock | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Mutual funds and common stock | 17,494 | ||||
Fair Value, Measurements, Recurring | Mortgage-Related Securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Mutual funds and common stock | 53,852 | ||||
Fair Value, Measurements, Recurring | Mortgage-Related Securities | GSE certificates | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Mutual funds and common stock | 53,852 | ||||
Fair Value, Measurements, Recurring | Other Securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Mutual funds and common stock | 150,403 | ||||
Fair Value, Measurements, Recurring | Other Securities | Municipal bonds | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Mutual funds and common stock | 795 | ||||
Fair Value, Measurements, Recurring | Other Securities | Capital trust notes | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Mutual funds and common stock | 6,964 | ||||
Fair Value, Measurements, Recurring | Other Securities | Preferred stock | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Mutual funds and common stock | 125,372 | ||||
Fair Value, Measurements, Recurring | Other Securities | Mutual Funds and Common Stock | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Mutual funds and common stock | 17,272 | ||||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Mutual funds and common stock | 97,908 | 96,641 | |||
Derivative assets-other | 6,259 | [1] | 1,875 | [2] | |
Derivative liabilities | (78) | (1,539) | |||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Preferred stock | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Mutual funds and common stock | 97,908 | ||||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Mutual funds and common stock | 96,641 | ||||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Securities | Preferred stock | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Mutual funds and common stock | 96,641 | ||||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Mutual funds and common stock | 54,341 | 107,614 | |||
Loans held for sale | 471,276 | 367,221 | |||
Derivative assets-other | 4,008 | [1] | 1,342 | [2] | |
Derivative liabilities | (7,182) | (2,783) | |||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Municipal bonds | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Mutual funds and common stock | 800 | ||||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Capital trust notes | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Mutual funds and common stock | 6,841 | ||||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Preferred stock | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Mutual funds and common stock | 29,206 | ||||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Mutual Funds and Common Stock | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Mutual funds and common stock | 17,494 | ||||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Mortgage-Related Securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Mutual funds and common stock | 53,852 | ||||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Mortgage-Related Securities | GSE certificates | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Mutual funds and common stock | 53,852 | ||||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Other Securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Mutual funds and common stock | 53,762 | ||||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Other Securities | Municipal bonds | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Mutual funds and common stock | 795 | ||||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Other Securities | Capital trust notes | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Mutual funds and common stock | 6,964 | ||||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Other Securities | Preferred stock | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Mutual funds and common stock | 28,731 | ||||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Other Securities | Mutual Funds and Common Stock | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Mutual funds and common stock | 17,272 | ||||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Mortgage servicing rights | 208,087 | 243,389 | |||
Interest rate lock commitments | 6,689 | 2,526 | |||
Fair Value, Measurements, Recurring | Netting Adjustment | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative assets-other | [3] | (845) | [1] | (1,024) | [2] |
Derivative liabilities | [3] | $ 5,760 | $ 3,986 | ||
[1] | Includes $3.7 million to purchase Treasury options. | ||||
[2] | Includes $1.9 million to purchase Treasury options. | ||||
[3] | Includes cash collateral received from, and paid to, counterparties. |
Assets and Liabilities Measur81
Assets and Liabilities Measured at Fair Value on Recurring Basis (Parenthetical) (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Treasury Options | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets-other | $ 3.7 | $ 1.9 |
Difference between Fair Value O
Difference between Fair Value Option and Unpaid Principal Balance (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair Value Carrying Amount | $ 471,276 | $ 367,221 |
Aggregate Unpaid Principal | 456,339 | 359,587 |
Fair Value Carrying Amount Less Aggregate Unpaid Principal | $ 14,937 | $ 7,634 |
Changes in Fair Value of Loans
Changes in Fair Value of Loans Held for Sale (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Mortgage Banking Income | [1] | $ (36,350) | $ (17,574) |
Loans held for sale | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Mortgage Banking Income | [1] | 6,900 | 4,369 |
Mortgage servicing rights | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Mortgage Banking Income | [1] | $ (43,250) | $ (21,943) |
[1] | Does not include the effect of hedging activities, which is included in "Other non-interest income." |
Rollforward of Financial Instru
Rollforward of Financial Instruments Classified in Level Three of Valuation Hierarchy (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Interest rate lock commitments | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value, Beginning Balance | $ 2,526 | $ 4,397 |
Total Realized/Unrealized Gains/(Losses) Recorded in (Loss) Income | 4,163 | 4,465 |
Total Realized/Unrealized Gains/(Losses) Recorded in Comprehensive (Loss) Income | 0 | 0 |
Settlements | 0 | 0 |
Transfers to/(from) level 3 | 0 | 0 |
Fair Value, Ending Balance | 6,689 | 8,862 |
Change in Unrealized Gains and (Losses) Related to Instruments Held | 6,586 | 8,807 |
Mortgage servicing rights | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value, Beginning Balance | 243,389 | 227,297 |
Total Realized/Unrealized Gains/(Losses) Recorded in (Loss) Income | (43,250) | (21,943) |
Total Realized/Unrealized Gains/(Losses) Recorded in Comprehensive (Loss) Income | 0 | 0 |
Issuances | 7,948 | 15,017 |
Settlements | 0 | 0 |
Transfers to/(from) level 3 | 0 | 0 |
Fair Value, Ending Balance | 208,087 | 220,371 |
Change in Unrealized Gains and (Losses) Related to Instruments Held | $ (37,093) | $ (6,448) |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, transfers out of Level 3 | $ 0 | $ 0 |
Significant Unobservable Inputs
Significant Unobservable Inputs used in Fair Value Measurement (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | ||
Interest rate lock commitments | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Fair value | $ 6,689 | $ 2,526 | $ 8,862 | $ 4,397 | |
Valuation Technique | Discounted Cash Flow | ||||
Weighted Average Closing Ratio | 75.99% | ||||
Mortgage servicing rights | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Fair value | $ 208,087 | $ 243,389 | $ 220,371 | $ 227,297 | |
Valuation Technique | Discounted Cash Flow | ||||
Weighted Average Constant Prepayment Rate | [1] | 9.68% | |||
Weighted Average Discount Rate | 10.02% | ||||
[1] | Represents annualized loan repayment rate assumptions. |
Assets and Liabilities Measur87
Assets and Liabilities Measured at Fair Value on Non-Recurring Basis (Detail) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Certain impaired loans | [1] | $ 1,657 | $ 3,930 |
Other assets | [2] | 9,251 | 7,982 |
Total | 10,908 | 11,912 | |
Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Certain impaired loans | [1] | 1,657 | 3,930 |
Other assets | [2] | 9,251 | 7,982 |
Total | $ 10,908 | $ 11,912 | |
[1] | Represents the fair value of certain impaired loans, based on the value of the collateral. | ||
[2] | Represents the fair value of OREO, based on the appraised value of the collateral subsequent to its initial classification as OREO. |
Summary of Carrying Values, Est
Summary of Carrying Values, Estimated Fair Values and Fair Value Measurement Levels of Financial Instruments (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | |||
Financial Assets: | |||||||
Cash and cash equivalents | $ 650,880 | $ 537,674 | $ 582,558 | $ 564,150 | |||
Securities held to maturity | 4,068,750 | [1] | 5,969,390 | [2] | |||
FHLB stock | [3] | 551,247 | 663,971 | ||||
Loans, net | 38,453,936 | 38,011,995 | |||||
Financial Liabilities: | |||||||
Deposits | 28,982,312 | 28,426,758 | |||||
Borrowed funds | 13,344,772 | 15,748,405 | |||||
Financial Assets: | |||||||
Cash and cash equivalents | 650,880 | 537,674 | |||||
Securities held to maturity | 4,304,161 | [1] | 6,108,529 | [2] | |||
FHLB stock | [3] | 551,247 | 663,971 | ||||
Loans, net | 38,914,681 | 38,245,434 | |||||
Financial Liabilities: | |||||||
Deposits | 28,986,770 | 28,408,915 | |||||
Borrowed funds | 13,412,305 | 15,685,616 | |||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||||||
Financial Assets: | |||||||
Cash and cash equivalents | 650,880 | 537,674 | |||||
Financial Liabilities: | |||||||
Deposits | [4] | 22,193,600 | 23,114,271 | ||||
Significant Other Observable Inputs (Level 2) | |||||||
Financial Assets: | |||||||
Securities held to maturity | 4,303,392 | 6,107,697 | |||||
FHLB stock | [3] | 551,247 | 663,971 | ||||
Financial Liabilities: | |||||||
Deposits | [5] | 6,793,170 | 5,294,644 | ||||
Borrowed funds | 13,412,305 | 15,685,616 | |||||
Significant Unobservable Inputs (Level 3) | |||||||
Financial Assets: | |||||||
Securities held to maturity | 769 | 832 | |||||
Loans, net | $ 38,914,681 | $ 38,245,434 | |||||
[1] | Held-to-maturity securities are reported at a carrying amount equal to amortized cost less the non-credit portion of OTTI recorded in Accumulated Other Comprehensive Loss ("AOCL"). At March 31, 2016, the non-credit portion of OTTI recorded in AOCL was $8.7 million, pre-tax. | ||||||
[2] | Held-to-maturity securities are reported at a carrying amount equal to amortized cost less the non-credit portion of OTTI recorded in AOCL. At December 31, 2015, the non-credit portion of OTTI recorded in AOCL was $8.7 million, pre-tax. | ||||||
[3] | Carrying value and estimated fair value are at cost. | ||||||
[4] | NOW and money market accounts, savings accounts, and non-interest-bearing accounts. | ||||||
[5] | Certificates of deposit. |
Derivative Financial Instrume89
Derivative Financial Instruments - Additional Information (Detail) | Mar. 31, 2016USD ($) |
Nondesignated | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Derivative financial instruments held, notional amount | $ 3,159,194,000 |
Derivative Financial Instrume90
Derivative Financial Instruments (Detail) - Nondesignated | Mar. 31, 2016USD ($) | |
Derivatives, Fair Value [Line Items] | ||
Derivative financial instruments held, notional amount | $ 3,159,194,000 | |
Interest rate lock commitments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative financial instruments held, notional amount | 630,194,000 | |
Treasury Options | ||
Derivatives, Fair Value [Line Items] | ||
Derivative financial instruments held, notional amount | 510,000,000 | |
Eurodollar Futures | ||
Derivatives, Fair Value [Line Items] | ||
Derivative financial instruments held, notional amount | 50,000,000 | |
Forward commitments to sell loans/mortgage-backed securities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative financial instruments held, notional amount | 1,084,000,000 | |
Forward commitments to buy loans/mortgage-backed securities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative financial instruments held, notional amount | 715,000,000 | |
Swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative financial instruments held, notional amount | 170,000,000 | |
Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Unrealized Gain | 13,265,000 | [1] |
Other assets | Interest rate lock commitments | ||
Derivatives, Fair Value [Line Items] | ||
Unrealized Gain | 6,689,000 | [1] |
Other assets | Treasury Options | ||
Derivatives, Fair Value [Line Items] | ||
Unrealized Gain | 1,072,000 | [1] |
Other assets | Forward commitments to sell loans/mortgage-backed securities | ||
Derivatives, Fair Value [Line Items] | ||
Unrealized Gain | 128,000 | [1] |
Other assets | Forward commitments to buy loans/mortgage-backed securities | ||
Derivatives, Fair Value [Line Items] | ||
Unrealized Gain | 3,880,000 | [1] |
Other assets | Swaps | ||
Derivatives, Fair Value [Line Items] | ||
Unrealized Gain | 1,496,000 | [1] |
Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Unrealized Loss | 7,260,000 | [1] |
Other liabilities | Treasury Options | ||
Derivatives, Fair Value [Line Items] | ||
Unrealized Loss | 61,000 | [1] |
Other liabilities | Eurodollar Futures | ||
Derivatives, Fair Value [Line Items] | ||
Unrealized Loss | 17,000 | [1] |
Other liabilities | Forward commitments to sell loans/mortgage-backed securities | ||
Derivatives, Fair Value [Line Items] | ||
Unrealized Loss | 6,861,000 | [1] |
Other liabilities | Forward commitments to buy loans/mortgage-backed securities | ||
Derivatives, Fair Value [Line Items] | ||
Unrealized Loss | $ 321,000 | [1] |
[1] | Derivatives in a net gain position are recorded as "Other assets" and derivatives in a net loss position are recorded as "Other liabilities" in the Consolidated Statements of Condition. |
Effect of Derivative Instrument
Effect of Derivative Instruments on Consolidated Statements of Income and Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain Included in Mortgage Banking Income | $ 9,662 | $ 5,571 |
Treasury Options | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain Included in Mortgage Banking Income | 7,231 | 3,416 |
Eurodollar Futures | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain Included in Mortgage Banking Income | 66 | 383 |
Forward commitments to buy/sell loans/mortgage-backed securities | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain Included in Mortgage Banking Income | 869 | $ 1,772 |
Swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain Included in Mortgage Banking Income | $ 1,496 |
Effect of Master Netting Arrang
Effect of Master Netting Arrangements on Presentation of Derivative Assets and Liabilities in Consolidated Statements of Financial Condition (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | ||
Derivative Financial Instruments, Liabilities | ||||
Derivatives, Fair Value [Line Items] | ||||
Gross Amounts of Recognized Liabilities | $ 7,260 | $ 4,322 | ||
Gross Amounts Offset in the Statement of Condition | 5,760 | 3,986 | ||
Net Amounts of Liabilities Presented in the Statement of Condition | 1,500 | 336 | ||
Financial Instruments | 0 | 0 | ||
Cash Collateral Received | 0 | 0 | ||
Net Amount | 1,500 | 336 | ||
Derivative Financial Instruments, Assets | ||||
Derivatives, Fair Value [Line Items] | ||||
Gross Amounts Of Recognized Assets | 16,956 | [1] | 5,743 | [2] |
Gross Amounts Offset in the Statement of Condition | 845 | 1,024 | ||
Net Amounts of Assets Presented in the Statement of Condition | 16,111 | 4,719 | ||
Financial Instruments | 0 | 0 | ||
Cash Collateral Received | 0 | 0 | ||
Net Amount | $ 16,111 | $ 4,719 | ||
[1] | Includes $3.7 million to purchase Treasury options. | |||
[2] | Includes $1.9 million to purchase Treasury options. |
Effect of Master Netting Arra93
Effect of Master Netting Arrangements on Presentation of Derivative Assets and Liabilities in Consolidated Statements of Financial Condition (Parenthetical) (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Treasury Options | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts Of Recognized Assets | $ 3.7 | $ 1.9 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2016Segment | |
Segment Reporting Information [Line Items] | |
Number of reportable business segments | 2 |
Segment Results (Detail)
Segment Results (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | ||
Segment Reporting Information [Line Items] | ||||
Net interest income | $ 327,866 | $ 292,768 | ||
Provision for (recovery of) losses | (176) | 7 | ||
Non-Interest Income | [1] | 35,237 | 52,234 | |
Non-interest expense | [2] | 158,448 | 156,836 | |
Income before income taxes | 204,831 | 188,159 | ||
Income tax (benefit) expense | 74,922 | 68,900 | ||
Net (loss) income | 129,909 | 119,259 | ||
Identifiable segment assets (period-end) | 48,515,572 | 48,251,715 | $ 50,317,796 | |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Non-Interest Income | 35,237 | 52,234 | ||
Banking Operations | ||||
Segment Reporting Information [Line Items] | ||||
Net interest income | 324,917 | 289,285 | ||
Provision for (recovery of) losses | (176) | 7 | ||
Non-Interest Income | [1] | 30,586 | 33,154 | |
Non-interest expense | [2] | 142,050 | 140,151 | |
Income before income taxes | 209,517 | 178,111 | ||
Income tax (benefit) expense | 76,815 | 64,890 | ||
Net (loss) income | 132,702 | 113,221 | ||
Identifiable segment assets (period-end) | 47,739,937 | 47,573,020 | ||
Banking Operations | Inter-segment | ||||
Segment Reporting Information [Line Items] | ||||
Non-Interest Income | (4,112) | (4,170) | ||
Banking Operations | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Non-Interest Income | 26,474 | 28,984 | ||
Residential Mortgage Banking | ||||
Segment Reporting Information [Line Items] | ||||
Net interest income | 2,949 | 3,483 | ||
Non-Interest Income | [1] | 4,651 | 19,080 | |
Non-interest expense | [2] | 16,398 | 16,685 | |
Income before income taxes | (4,686) | 10,048 | ||
Income tax (benefit) expense | (1,893) | 4,010 | ||
Net (loss) income | (2,793) | 6,038 | ||
Identifiable segment assets (period-end) | 775,635 | 678,695 | ||
Residential Mortgage Banking | Inter-segment | ||||
Segment Reporting Information [Line Items] | ||||
Non-Interest Income | 4,112 | 4,170 | ||
Residential Mortgage Banking | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Non-Interest Income | $ 8,763 | $ 23,250 | ||
[1] | Includes ancillary fee income. | |||
[2] | Includes both direct and indirect expenses. |