Loans Receivable and Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2013 |
Loans Receivable and Allowance for Loan Losses | ' |
Loans Receivable and Allowance for Loan Losses | ' |
4. Loans Receivable and Allowance for Loan Losses |
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The following tables set forth the composition of our loans receivable portfolio, and an aging analysis by accruing and non-accrual loans, by segment and class at the dates indicated. |
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| | At September 30, 2013 | | | | | | | |
| | Past Due | | | | | | | | | | | | | |
| | 30-59 | | 60-89 | | 90 Days | | Total | | | | | | | | | | | |
(In Thousands) | | Days | | Days | | or More | | Past Due | | Current | | Total | | | | | | | |
Accruing loans: | | | | | | | | | | | | | | | | | | | |
Mortgage loans (gross): | | | | | | | | | | | | | | | | | | | |
Residential: | | | | | | | | | | | | | | | | | | | |
Full documentation interest-only | | $ | 23,479 | | $ | 6,327 | | $ | — | | $ | 29,806 | | $ | 1,387,347 | | $ | 1,417,153 | | | | | | | |
Full documentation amortizing | | 29,947 | | 9,623 | | — | | 39,570 | | 5,408,913 | | 5,448,483 | | | | | | | |
Reduced documentation interest-only | | 24,384 | | 7,232 | | — | | 31,616 | | 723,406 | | 755,022 | | | | | | | |
Reduced documentation amortizing | | 8,635 | | 1,997 | | — | | 10,632 | | 348,810 | | 359,442 | | | | | | | |
Total residential | | 86,445 | | 25,179 | | — | | 111,624 | | 7,868,476 | | 7,980,100 | | | | | | | |
Multi-family | | 8,961 | | 1,448 | | — | | 10,409 | | 3,091,944 | | 3,102,353 | | | | | | | |
Commercial real estate | | — | | 1,024 | | 55 | | 1,079 | | 811,128 | | 812,207 | | | | | | | |
Total mortgage loans | | 95,406 | | 27,651 | | 55 | | 123,112 | | 11,771,548 | | 11,894,660 | | | | | | | |
Consumer and other loans (gross): | | | | | | | | | | | | | | | | | | | |
Home equity lines of credit | | 2,573 | | 1,350 | | — | | 3,923 | | 196,121 | | 200,044 | | | | | | | |
Other | | 60 | | 36 | | — | | 96 | | 37,499 | | 37,595 | | | | | | | |
Total consumer and other loans | | 2,633 | | 1,386 | | — | | 4,019 | | 233,620 | | 237,639 | | | | | | | |
Total accruing loans | | $ | 98,039 | | $ | 29,037 | | $ | 55 | | $ | 127,131 | | $ | 12,005,168 | | $ | 12,132,299 | | | | | | | |
Non-accrual loans: | | | | | | | | | | | | | | | | | | | |
Mortgage loans (gross): | | | | | | | | | | | | | | | | | | | |
Residential: | | | | | | | | | | | | | | | | | | | |
Full documentation interest-only | | $ | 1,863 | | $ | — | | $ | 85,019 | | $ | 86,882 | | $ | 21,802 | | $ | 108,684 | | | | | | | |
Full documentation amortizing | | 346 | | 1,226 | | 42,294 | | 43,866 | | 8,675 | | 52,541 | | | | | | | |
Reduced documentation interest-only | | 3,129 | | 492 | | 91,089 | | 94,710 | | 29,814 | | 124,524 | | | | | | | |
Reduced documentation amortizing | | 1,532 | | 129 | | 26,289 | | 27,950 | | 4,719 | | 32,669 | | | | | | | |
Total residential | | 6,870 | | 1,847 | | 244,691 | | 253,408 | | 65,010 | | 318,418 | | | | | | | |
Multi-family | | 1,030 | | 363 | | 11,037 | | 12,430 | | 3,231 | | 15,661 | | | | | | | |
Commercial real estate | | — | | 937 | | 1,098 | | 2,035 | | 8,578 | | 10,613 | | | | | | | |
Total mortgage loans | | 7,900 | | 3,147 | | 256,826 | | 267,873 | | 76,819 | | 344,692 | | | | | | | |
Consumer and other loans (gross): | | | | | | | | | | | | | | | | | | | |
Home equity lines of credit | | — | | — | | 6,441 | | 6,441 | | 32 | | 6,473 | | | | | | | |
Other | | — | | — | | 33 | | 33 | | — | | 33 | | | | | | | |
Total consumer and other loans | | — | | — | | 6,474 | | 6,474 | | 32 | | 6,506 | | | | | | | |
Total non-accrual loans | | $ | 7,900 | | $ | 3,147 | | $ | 263,300 | | $ | 274,347 | | $ | 76,851 | | $ | 351,198 | | | | | | | |
Total loans: | | | | | | | | | | | | | | | | | | | |
Mortgage loans (gross): | | | | | | | | | | | | | | | | | | | |
Residential: | | | | | | | | | | | | | | | | | | | |
Full documentation interest-only | | $ | 25,342 | | $ | 6,327 | | $ | 85,019 | | $ | 116,688 | | $ | 1,409,149 | | $ | 1,525,837 | | | | | | | |
Full documentation amortizing | | 30,293 | | 10,849 | | 42,294 | | 83,436 | | 5,417,588 | | 5,501,024 | | | | | | | |
Reduced documentation interest-only | | 27,513 | | 7,724 | | 91,089 | | 126,326 | | 753,220 | | 879,546 | | | | | | | |
Reduced documentation amortizing | | 10,167 | | 2,126 | | 26,289 | | 38,582 | | 353,529 | | 392,111 | | | | | | | |
Total residential | | 93,315 | | 27,026 | | 244,691 | | 365,032 | | 7,933,486 | | 8,298,518 | | | | | | | |
Multi-family | | 9,991 | | 1,811 | | 11,037 | | 22,839 | | 3,095,175 | | 3,118,014 | | | | | | | |
Commercial real estate | | — | | 1,961 | | 1,153 | | 3,114 | | 819,706 | | 822,820 | | | | | | | |
Total mortgage loans | | 103,306 | | 30,798 | | 256,881 | | 390,985 | | 11,848,367 | | 12,239,352 | | | | | | | |
Consumer and other loans (gross): | | | | | | | | | | | | | | | | | | | |
Home equity lines of credit | | 2,573 | | 1,350 | | 6,441 | | 10,364 | | 196,153 | | 206,517 | | | | | | | |
Other | | 60 | | 36 | | 33 | | 129 | | 37,499 | | 37,628 | | | | | | | |
Total consumer and other loans | | 2,633 | | 1,386 | | 6,474 | | 10,493 | | 233,652 | | 244,145 | | | | | | | |
Total loans | | $ | 105,939 | | $ | 32,184 | | $ | 263,355 | | $ | 401,478 | | $ | 12,082,019 | | $ | 12,483,497 | | | | | | | |
Net unamortized premiums and deferred loan origination costs | | | | | | | | | | | | 58,046 | | | | | | | |
Loans receivable | | | | | | | | | | | | 12,541,543 | | | | | | | |
Allowance for loan losses | | | | | | | | | | | | (143,000 | ) | | | | | | |
Loans receivable, net | | | | | | | | | | | | $ | 12,398,543 | | | | | | | |
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| | At December 31, 2012 | | | | | | | |
| | Past Due | | | | | | | | | | | | | |
| | 30-59 | | 60-89 | | 90 Days | | Total | | | | | | | | | | | |
(In Thousands) | | Days | | Days | | or More | | Past Due | | Current | | Total | | | | | | | |
Accruing loans: | | | | | | | | | | | | | | | | | | | |
Mortgage loans (gross): | | | | | | | | | | | | | | | | | | | |
Residential: | | | | | | | | | | | | | | | | | | | |
Full documentation interest-only | | $ | 30,520 | | $ | 8,973 | | $ | — | | $ | 39,493 | | $ | 1,862,382 | | $ | 1,901,875 | | | | | | | |
Full documentation amortizing | | 35,918 | | 6,564 | | — | | 42,482 | | 6,218,064 | | 6,260,546 | | | | | | | |
Reduced documentation interest-only | | 28,212 | | 7,694 | | — | | 35,906 | | 855,907 | | 891,813 | | | | | | | |
Reduced documentation amortizing | | 11,780 | | 3,893 | | — | | 15,673 | | 350,268 | | 365,941 | | | | | | | |
Total residential | | 106,430 | | 27,124 | | — | | 133,554 | | 9,286,621 | | 9,420,175 | | | | | | | |
Multi-family | | 21,743 | | 5,382 | | — | | 27,125 | | 2,368,895 | | 2,396,020 | | | | | | | |
Commercial real estate | | 13,536 | | 3,126 | | 328 | | 16,990 | | 750,385 | | 767,375 | | | | | | | |
Total mortgage loans | | 141,709 | | 35,632 | | 328 | | 177,669 | | 12,405,901 | | 12,583,570 | | | | | | | |
Consumer and other loans (gross): | | | | | | | | | | | | | | | | | | | |
Home equity lines of credit | | 3,103 | | 1,092 | | — | | 4,195 | | 221,266 | | 225,461 | | | | | | | |
Other | | 120 | | 223 | | — | | 343 | | 31,782 | | 32,125 | | | | | | | |
Total consumer and other loans | | 3,223 | | 1,315 | | — | | 4,538 | | 253,048 | | 257,586 | | | | | | | |
Total accruing loans | | $ | 144,932 | | $ | 36,947 | | $ | 328 | | $ | 182,207 | | $ | 12,658,949 | | $ | 12,841,156 | | | | | | | |
Non-accrual loans: | | | | | | | | | | | | | | | | | | | |
Mortgage loans (gross): | | | | | | | | | | | | | | | | | | | |
Residential: | | | | | | | | | | | | | | | | | | | |
Full documentation interest-only | | $ | — | | $ | 677 | | $ | 97,907 | | $ | 98,584 | | $ | 937 | | $ | 99,521 | | | | | | | |
Full documentation amortizing | | 363 | | — | | 43,014 | | 43,377 | | 949 | | 44,326 | | | | | | | |
Reduced documentation interest-only | | 1,042 | | — | | 107,254 | | 108,296 | | 5,186 | | 113,482 | | | | | | | |
Reduced documentation amortizing | | 445 | | 13 | | 32,496 | | 32,954 | | 768 | | 33,722 | | | | | | | |
Total residential | | 1,850 | | 690 | | 280,671 | | 283,211 | | 7,840 | | 291,051 | | | | | | | |
Multi-family | | — | | — | | 7,359 | | 7,359 | | 3,299 | | 10,658 | | | | | | | |
Commercial real estate | | — | | — | | 6,541 | | 6,541 | | — | | 6,541 | | | | | | | |
Total mortgage loans | | 1,850 | | 690 | | 294,571 | | 297,111 | | 11,139 | | 308,250 | | | | | | | |
Consumer and other loans (gross): | | | | | | | | | | | | | | | | | | | |
Home equity lines of credit | | — | | — | | 6,459 | | 6,459 | | — | | 6,459 | | | | | | | |
Other | | — | | — | | 49 | | 49 | | — | | 49 | | | | | | | |
Total consumer and other loans | | — | | — | | 6,508 | | 6,508 | | — | | 6,508 | | | | | | | |
Total non-accrual loans | | $ | 1,850 | | $ | 690 | | $ | 301,079 | | $ | 303,619 | | $ | 11,139 | | $ | 314,758 | | | | | | | |
Total loans: | | | | | | | | | | | | | | | | | | | |
Mortgage loans (gross): | | | | | | | | | | | | | | | | | | | |
Residential: | | | | | | | | | | | | | | | | | | | |
Full documentation interest-only | | $ | 30,520 | | $ | 9,650 | | $ | 97,907 | | $ | 138,077 | | $ | 1,863,319 | | $ | 2,001,396 | | | | | | | |
Full documentation amortizing | | 36,281 | | 6,564 | | 43,014 | | 85,859 | | 6,219,013 | | 6,304,872 | | | | | | | |
Reduced documentation interest-only | | 29,254 | | 7,694 | | 107,254 | | 144,202 | | 861,093 | | 1,005,295 | | | | | | | |
Reduced documentation amortizing | | 12,225 | | 3,906 | | 32,496 | | 48,627 | | 351,036 | | 399,663 | | | | | | | |
Total residential | | 108,280 | | 27,814 | | 280,671 | | 416,765 | | 9,294,461 | | 9,711,226 | | | | | | | |
Multi-family | | 21,743 | | 5,382 | | 7,359 | | 34,484 | | 2,372,194 | | 2,406,678 | | | | | | | |
Commercial real estate | | 13,536 | | 3,126 | | 6,869 | | 23,531 | | 750,385 | | 773,916 | | | | | | | |
Total mortgage loans | | 143,559 | | 36,322 | | 294,899 | | 474,780 | | 12,417,040 | | 12,891,820 | | | | | | | |
Consumer and other loans (gross): | | | | | | | | | | | | | | | | | | | |
Home equity lines of credit | | 3,103 | | 1,092 | | 6,459 | | 10,654 | | 221,266 | | 231,920 | | | | | | | |
Other | | 120 | | 223 | | 49 | | 392 | | 31,782 | | 32,174 | | | | | | | |
Total consumer and other loans | | 3,223 | | 1,315 | | 6,508 | | 11,046 | | 253,048 | | 264,094 | | | | | | | |
Total loans | | $ | 146,782 | | $ | 37,637 | | $ | 301,407 | | $ | 485,826 | | $ | 12,670,088 | | $ | 13,155,914 | | | | | | | |
Net unamortized premiums and deferred loan origination costs | | | | | | | | | | | | 68,058 | | | | | | | |
Loans receivable | | | | | | | | | | | | 13,223,972 | | | | | | | |
Allowance for loan losses | | | | | | | | | | | | (145,501 | ) | | | | | | |
Loans receivable, net | | | | | | | | | | | | $ | 13,078,471 | | | | | | | |
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We segment our residential mortgage loan portfolio by interest-only and amortizing loans, full documentation and reduced documentation loans and year of origination and analyze our historical loss experience and delinquency levels and trends of these segments. We analyze multi-family and commercial real estate loans by portfolio, geographic location and year of origination. We analyze our consumer and other loan portfolio by home equity lines of credit, commercial loans, revolving credit lines and installment loans and perform similar historical loss analyses. |
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Effective in the 2013 first quarter, in addition to residential loans discharged in a Chapter 7 bankruptcy filing, or bankruptcy loans, placed on non-accrual status and reported as non-performing loans as of December 31, 2012, we also included bankruptcy loans discharged prior to 2012 regardless of the delinquency status of the loans, which resulted in an increase in non-performing loans at September 30, 2013 compared to December 31, 2012. Non-performing loans at September 30, 2013 included $64.3 million of bankruptcy loans which were current or less than 90 days past due, including $49.9 million which were discharged prior to 2012. Of the bankruptcy loans which were current or less than 90 days past due at September 30, 2013, $57.8 million were current, $5.9 million were 30-59 days past due and $535,000 were 60-89 days past due. Such loans continue to generate interest income on a cash basis as payments are received. Pursuant to regulatory guidance issued in 2012, bankruptcy loans, in addition to being placed on non-accrual status and reported as non-performing loans, are also reported as loans modified in a troubled debt restructuring, or TDR, and as impaired loans; such loans totaled $88.0 million at September 30, 2013, including bankruptcy loans discharged prior to 2012 of $66.3 million. |
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We analyze our historical loss experience over twelve, fifteen, eighteen and twenty-four month periods. The loss history used in calculating our quantitative allowance coverage percentages varies based on loan type. Also, for a particular loan type we may not have sufficient loss history to develop a reasonable estimate of loss and consider our loss experience for other, similar loan types and may evaluate those losses over a longer period than two years. Additionally, multi-family and commercial real estate loss experience may be adjusted based on the composition of the losses (loan sales, short sales and partial charge-offs). We update our historical loss analyses quarterly and evaluate the need to modify our quantitative allowances as a result of our updated charge-off and loss analyses. In the 2013 third quarter, we further updated the method of determining our allowance level by (1) extending our evaluation of loss experience factors to consider trends in such factors over the prior two years for the majority of the loan portfolio, and (2) giving consideration to more detailed modeling techniques as an added factor for multi-family and commercial real estate loans originated since 2010. We also consider qualitative factors with the purpose of assessing the adequacy of the overall allowance for loan losses as well as the allocation of the allowance for loan losses by portfolio. |
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Allowance adequacy calculations are adjusted quarterly, based on the results of our quantitative and qualitative analyses, to reflect our current estimates of the amount of probable losses inherent in our loan portfolio in determining our allowance for loan losses. Beginning with the 2013 first quarter, the allowance for loan losses allocated to residential mortgage loans over 180 days delinquent with a charge-off, previously determined within our qualitative analysis, is now determined within our quantitative analysis and presented as attributable to those loans individually evaluated for impairment. The portion of the allowance allocated to each loan category does not represent the total available to absorb losses which may occur within the loan category, since the total allowance for loan losses is available for losses applicable to the entire loan portfolio. |
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The following tables set forth the changes in our allowance for loan losses by loan receivable segment for the periods indicated. |
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| | For the Three Months Ended September 30, 2013 | | | | | | | | | | |
| | Mortgage Loans | | Consumer | | | | | | | | | | | | |
(In Thousands) | | Residential | | Multi- | | Commercial | | and Other | | Total | | | | | | | | | | |
Family | Real Estate | Loans | | | | | | | | | |
Balance at July 1, 2013 | | $ | 78,788 | | $ | 40,865 | | $ | 16,642 | | $ | 7,605 | | $ | 143,900 | | | | | | | | | | |
Provision charged (credited) to operations | | 7,659 | | -2,521 | | -2,592 | | -5 | | 2,541 | | | | | | | | | | |
Charge-offs | | -5,560 | | -99 | | -293 | | -544 | | (6,496 | ) | | | | | | | | | |
Recoveries | | 2,537 | | — | | 247 | | 271 | | 3,055 | | | | | | | | | | |
Balance at September 30, 2013 | | $ | 83,424 | | $ | 38,245 | | $ | 14,004 | | $ | 7,327 | | $ | 143,000 | | | | | | | | | | |
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| | For the Nine Months Ended September 30, 2013 | | | | | | | | | | |
| | Mortgage Loans | | Consumer | | | | | | | | | | | | |
(In Thousands) | | Residential | | Multi- | | Commercial | | and Other | | Total | | | | | | | | | | |
Family | Real Estate | Loans | | | | | | | | | |
Balance at January 1, 2013 | | $ | 89,267 | | $ | 35,514 | | $ | 14,404 | | $ | 6,316 | | $ | 145,501 | | | | | | | | | | |
Provision charged to operations | | 7,488 | | 5,131 | | 1,378 | | 2,196 | | 16,193 | | | | | | | | | | |
Charge-offs | | -20,332 | | -3,637 | | -2,313 | | -1,672 | | (27,954 | ) | | | | | | | | | |
Recoveries | | 7,001 | | 1,237 | | 535 | | 487 | | 9,260 | | | | | | | | | | |
Balance at September 30, 2013 | | $ | 83,424 | | $ | 38,245 | | $ | 14,004 | | $ | 7,327 | | $ | 143,000 | | | | | | | | | | |
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| | For the Three Months Ended September 30, 2012 | | | | | | | | | | |
| | Mortgage Loans | | Consumer | | | | | | | | | | | | |
(In Thousands) | | Residential | | Multi- | | Commercial | | and Other | | Total | | | | | | | | | | |
Family | Real Estate | Loans | | | | | | | | | |
Balance at July 1, 2012 | | $ | 87,394 | | $ | 48,142 | | $ | 9,109 | | $ | 3,457 | | $ | 148,102 | | | | | | | | | | |
Provision charged (credited) to operations | | 9,210 | | -6,168 | | 3,828 | | 2,630 | | 9,500 | | | | | | | | | | |
Charge-offs | | -8,195 | | -1,233 | | -1,379 | | -891 | | (11,698 | ) | | | | | | | | | |
Recoveries | | 2,355 | | 122 | | — | | 91 | | 2,568 | | | | | | | | | | |
Balance at September 30, 2012 | | $ | 90,764 | | $ | 40,863 | | $ | 11,558 | | $ | 5,287 | | $ | 148,472 | | | | | | | | | | |
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| | For the Nine Months Ended September 30, 2012 | | | | | | | | | |
| | Mortgage Loans | | Consumer | | | | | | | | | | | | |
(In Thousands) | | Residential | | Multi- | | Commercial | | and Other | | Total | | | | | | | | | | |
Family | Real Estate | Loans | | | | | | | | | |
Balance at January 1, 2012 | | $ | 105,991 | | $ | 35,422 | | $ | 11,972 | | $ | 3,800 | | $ | 157,185 | | | | | | | | | | |
Provision charged to operations | | 16,387 | | 8,381 | | 1,303 | | 3,429 | | 29,500 | | | | | | | | | | |
Charge-offs | | -37,598 | | -3,139 | | -1,718 | | -2,367 | | (44,822 | ) | | | | | | | | | |
Recoveries | | 5,984 | | 199 | | 1 | | 425 | | 6,609 | | | | | | | | | | |
Balance at September 30, 2012 | | $ | 90,764 | | $ | 40,863 | | $ | 11,558 | | $ | 5,287 | | $ | 148,472 | | | | | | | | | | |
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The following table sets forth the balances of our residential interest-only mortgage loans at September 30, 2013 by the period in which such loans are scheduled to enter their amortization period. |
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(In Thousands) | | Recorded | | | | | | | | | | | | | | | | | | | | | | |
Investment | | | | | | | | | | | | | | | | | | | | | |
Amortization scheduled to begin: | | | | | | | | | | | | | | | | | | | | | | | | |
Within one year | | $ | 229,445 | | | | | | | | | | | | | | | | | | | | | | |
More than one year to three years | | 1,334,544 | | | | | | | | | | | | | | | | | | | | | | |
More than three years to five years | | 769,974 | | | | | | | | | | | | | | | | | | | | | | |
Over five years | | 71,420 | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 2,405,383 | | | | | | | | | | | | | | | | | | | | | | |
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The following tables set forth the balances of our residential mortgage and consumer and other loan receivable segments by class and credit quality indicator at the dates indicated. |
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| | At September 30, 2013 | | | | | | | |
| | Residential Mortgage Loans | | Consumer and Other Loans | | | | | | | |
| | Full Documentation | | Reduced Documentation | | Home Equity | | | | | | | | | |
(In Thousands) | | Interest-only | | Amortizing | | Interest-only | | Amortizing | | Lines of Credit | | Other | | | | | | | |
Performing | | $ | 1,417,153 | | $ | 5,448,483 | | $ | 755,022 | | $ | 359,442 | | $ | 200,044 | | $ | 37,595 | | | | | | | |
Non-performing: | | | | | | | | | | | | | | | | | | | |
Current or past due less than 90 days | | 23,665 | | 10,247 | | 33,435 | | 6,380 | | 32 | | — | | | | | | | |
Past due 90 days or more | | 85,019 | | 42,294 | | 91,089 | | 26,289 | | 6,441 | | 33 | | | | | | | |
Total | | $ | 1,525,837 | | $ | 5,501,024 | | $ | 879,546 | | $ | 392,111 | | $ | 206,517 | | $ | 37,628 | | | | | | | |
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| | At December 31, 2012 | | | | | | | |
| | Residential Mortgage Loans | | Consumer and Other Loans | | | | | | | |
| | Full Documentation | | Reduced Documentation | | Home Equity | | | | | | | | | |
(In Thousands) | | Interest-only | | Amortizing | | Interest-only | | Amortizing | | Lines of Credit | | Other | | | | | | | |
Performing | | $ | 1,901,875 | | $ | 6,260,546 | | $ | 891,813 | | $ | 365,941 | | $ | 225,461 | | $ | 32,125 | | | | | | | |
Non-performing: | | | | | | | | | | | | | | | | | | | |
Current or past due less than 90 days | | 1,614 | | 1,312 | | 6,228 | | 1,226 | | — | | — | | | | | | | |
Past due 90 days or more | | 97,907 | | 43,014 | | 107,254 | | 32,496 | | 6,459 | | 49 | | | | | | | |
Total | | $ | 2,001,396 | | $ | 6,304,872 | | $ | 1,005,295 | | $ | 399,663 | | $ | 231,920 | | $ | 32,174 | | | | | | | |
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The following table sets forth the balances of our multi-family and commercial real estate mortgage loan receivable segments by credit quality indicator at the dates indicated. |
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| | At September 30, 2013 | | At December 31, 2012 | | | | | | | | | | | | | |
(In Thousands) | | Multi-Family | | Commercial | | Multi-Family | | Commercial | | | | | | | | | | | | | |
Real Estate | Real Estate | | | | | | | | | | | | |
Not criticized | | $ | 3,027,701 | | $ | 774,515 | | $ | 2,271,006 | | $ | 706,334 | | | | | | | | | | | | | |
Criticized: | | | | | | | | | | | | | | | | | | | | | |
Special mention | | 20,016 | | 8,123 | | 54,956 | | 28,210 | | | | | | | | | | | | | |
Substandard | | 70,297 | | 40,182 | | 80,716 | | 39,372 | | | | | | | | | | | | | |
Doubtful | | — | | — | | — | | — | | | | | | | | | | | | | |
Total | | $ | 3,118,014 | | $ | 822,820 | | $ | 2,406,678 | | $ | 773,916 | | | | | | | | | | | | | |
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The following tables set forth the balances of our loans receivable and the related allowance for loan loss allocation by segment and by the impairment methodology followed in determining the allowance for loan losses at the dates indicated. |
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| | At September 30, 2013 | | | | | | | | | | |
| | Mortgage Loans | | Consumer | | | | | | | | | | | | |
(In Thousands) | | Residential | | Multi- | | Commercial | | and Other | | Total | | | | | | | | | | |
Family | Real Estate | Loans | | | | | | | | | |
Loans: | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | | $ | 313,495 | | $ | 55,391 | | $ | 17,154 | | $ | — | | $ | 386,040 | | | | | | | | | | |
Collectively evaluated for impairment | | 7,985,023 | | 3,062,623 | | 805,666 | | 244,145 | | 12,097,457 | | | | | | | | | | |
Total loans | | $ | 8,298,518 | | $ | 3,118,014 | | $ | 822,820 | | $ | 244,145 | | $ | 12,483,497 | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | | $ | 22,265 | | $ | 2,179 | | $ | 322 | | $ | — | | $ | 24,766 | | | | | | | | | | |
Collectively evaluated for impairment | | 61,159 | | 36,066 | | 13,682 | | 7,327 | | 118,234 | | | | | | | | | | |
Total allowance for loan losses | | $ | 83,424 | | $ | 38,245 | | $ | 14,004 | | $ | 7,327 | | $ | 143,000 | | | | | | | | | | |
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| | At December 31, 2012 | | | | | | | | | | |
| | Mortgage Loans | | Consumer | | | | | | | | | | | | |
(In Thousands) | | Residential | | Multi- | | Commercial | | and Other | | Total | | | | | | | | | | |
Family | Real Estate | Loans | | | | | | | | | |
Loans: | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | | $ | 272,146 | | $ | 56,116 | | $ | 18,644 | | $ | — | | $ | 346,906 | | | | | | | | | | |
Collectively evaluated for impairment | | 9,439,080 | | 2,350,562 | | 755,272 | | 264,094 | | 12,809,008 | | | | | | | | | | |
Total loans | | $ | 9,711,226 | | $ | 2,406,678 | | $ | 773,916 | | $ | 264,094 | | $ | 13,155,914 | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | | $ | 1,001 | | $ | 2,576 | | $ | 1,469 | | $ | — | | $ | 5,046 | | | | | | | | | | |
Collectively evaluated for impairment | | 88,266 | | 32,938 | | 12,935 | | 6,316 | | 140,455 | | | | | | | | | | |
Total allowance for loan losses | | $ | 89,267 | | $ | 35,514 | | $ | 14,404 | | $ | 6,316 | | $ | 145,501 | | | | | | | | | | |
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The following table summarizes information related to our impaired mortgage loans by segment and class at the dates indicated. |
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| | At September 30, 2013 | | At December 31, 2012 | |
(In Thousands) | | Unpaid | | Recorded | | Related | | Net | | Unpaid | | Recorded | | Related | | Net | |
Principal | Investment | Allowance | Investment | Principal | Investment | Allowance | Investment |
Balance | | | | Balance | | | |
With an allowance recorded: | | | | | | | | | | | | | | | | | |
Residential: | | | | | | | | | | | | | | | | | |
Full documentation interest-only | | $ | 149,386 | | $ | 114,923 | | $ | (7,797 | ) | $ | 107,126 | | $ | 10,740 | | $ | 10,740 | | $ | (241 | ) | $ | 10,499 | |
Full documentation amortizing | | 40,794 | | 35,014 | | (2,550 | ) | 32,464 | | 6,122 | | 6,122 | | (347 | ) | 5,775 | |
Reduced documentation interest-only | | 183,353 | | 139,472 | | (9,564 | ) | 129,908 | | 12,893 | | 12,893 | | (277 | ) | 12,616 | |
Reduced documentation amortizing | | 29,062 | | 24,086 | | (2,354 | ) | 21,732 | | 3,889 | | 3,889 | | (136 | ) | 3,753 | |
Multi-family | | 23,437 | | 23,437 | | (2,179 | ) | 21,258 | | 19,704 | | 19,704 | | (2,576 | ) | 17,128 | |
Commercial real estate | | 6,764 | | 6,764 | | (322 | ) | 6,442 | | 10,835 | | 10,835 | | (1,469 | ) | 9,366 | |
Without an allowance recorded: | | | | | | | | | | | | | | | | | |
Residential: | | | | | | | | | | | | | | | | | |
Full documentation interest-only | | — | | — | | — | | — | | 122,275 | | 86,607 | | — | | 86,607 | |
Full documentation amortizing | | — | | — | | — | | — | | 23,489 | | 17,962 | | — | | 17,962 | |
Reduced documentation interest-only | | — | | — | | — | | — | | 166,477 | | 116,514 | | — | | 116,514 | |
Reduced documentation amortizing | | — | | — | | — | | — | | 23,419 | | 17,419 | | — | | 17,419 | |
Multi-family | | 38,635 | | 31,954 | | — | | 31,954 | | 44,341 | | 36,412 | | — | | 36,412 | |
Commercial real estate | | 14,830 | | 10,390 | | — | | 10,390 | | 13,256 | | 7,809 | | — | | 7,809 | |
Total impaired loans | | $ | 486,261 | | $ | 386,040 | | $ | (24,766 | ) | $ | 361,274 | | $ | 457,440 | | $ | 346,906 | | $ | (5,046 | ) | $ | 341,860 | |
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The following tables set forth the average recorded investment, interest income recognized and cash basis interest income related to our impaired mortgage loans by segment and class for the periods indicated. |
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| | For the Three Months Ended September 30, | | | | | | | |
| | 2013 | | 2012 | | | | | | | |
(In Thousands) | | Average | | Interest | | Cash Basis | | Average | | Interest | | Cash Basis | | | | | | | |
Recorded | Income | Interest | Recorded | Income | Interest | | | | | | |
Investment | Recognized | Income | Investment | Recognized | Income | | | | | | |
With an allowance recorded: | | | | | | | | | | | | | | | | | | | |
Residential: | | | | | | | | | | | | | | | | | | | |
Full documentation interest-only | | $ | 107,893 | | $ | 762 | | $ | 763 | | $ | 10,254 | | $ | 79 | | $ | 77 | | | | | | | |
Full documentation amortizing | | 31,128 | | 218 | | 220 | | 4,210 | | 40 | | 41 | | | | | | | |
Reduced documentation interest-only | | 144,468 | | 1,171 | | 1,174 | | 10,469 | | 130 | | 122 | | | | | | | |
Reduced documentation amortizing | | 24,452 | | 158 | | 152 | | 2,272 | | 27 | | 19 | | | | | | | |
Multi-family | | 19,557 | | 34 | | 169 | | 60,560 | | 1,146 | | 590 | | | | | | | |
Commercial real estate | | 7,604 | | 56 | | 66 | | 11,838 | | 229 | | 97 | | | | | | | |
Without an allowance recorded: | | | | | | | | | | | | | | | | | | | |
Residential: | | | | | | | | | | | | | | | | | | | |
Full documentation interest-only | | 9,075 | | — | | — | | 83,722 | | 417 | | 411 | | | | | | | |
Full documentation amortizing | | 2,968 | | — | | — | | 16,611 | | 117 | | 108 | | | | | | | |
Reduced documentation interest-only | | — | | — | | — | | 118,021 | | 742 | | 728 | | | | | | | |
Reduced documentation amortizing | | — | | — | | — | | 18,694 | | 79 | | 69 | | | | | | | |
Multi-family | | 31,464 | | 401 | | 416 | | 12,517 | | 503 | | 227 | | | | | | | |
Commercial real estate | | 11,252 | | 112 | | 131 | | 6,623 | | 272 | | 99 | | | | | | | |
Total impaired loans | | $ | 389,861 | | $ | 2,912 | | $ | 3,091 | | $ | 355,791 | | $ | 3,781 | | $ | 2,588 | | | | | | | |
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| | For the Nine Months Ended September 30, | | | | | | | |
| | 2013 | | 2012 | | | | | | | |
(In Thousands) | | Average | | Interest | | Cash Basis | | Average | | Interest | | Cash Basis | | | | | | | |
Recorded | Income | Interest | Recorded | Income | Interest | | | | | | |
Investment | Recognized | Income | Investment | Recognized | Income | | | | | | |
With an allowance recorded: | | | | | | | | | | | | | | | | | | | |
Residential: | | | | | | | | | | | | | | | | | | | |
Full documentation interest-only | | $ | 105,931 | | $ | 2,114 | | $ | 2,229 | | $ | 10,360 | | $ | 247 | | $ | 247 | | | | | | | |
Full documentation amortizing | | 29,465 | | 623 | | 639 | | 4,071 | | 121 | | 122 | | | | | | | |
Reduced documentation interest-only | | 146,773 | | 3,053 | | 3,205 | | 10,967 | | 342 | | 345 | | | | | | | |
Reduced documentation amortizing | | 25,424 | | 464 | | 493 | | 2,084 | | 86 | | 78 | | | | | | | |
Multi-family | | 18,975 | | 659 | | 722 | | 55,319 | | 2,252 | | 1,946 | | | | | | | |
Commercial real estate | | 8,692 | | 253 | | 285 | | 13,196 | | 430 | | 321 | | | | | | | |
Without an allowance recorded: | | | | | | | | | | | | | | | | | | | |
Residential: | | | | | | | | | | | | | | | | | | | |
Full documentation interest-only | | 14,433 | | — | | — | | 81,638 | | 1,069 | | 1,136 | | | | | | | |
Full documentation amortizing | | 4,396 | | — | | — | | 17,452 | | 221 | | 234 | | | | | | | |
Reduced documentation interest-only | | 2,086 | | — | | — | | 115,363 | | 1,731 | | 1,824 | | | | | | | |
Reduced documentation amortizing | | — | | — | | — | | 17,293 | | 291 | | 303 | | | | | | | |
Multi-family | | 33,294 | | 1,165 | | 1,229 | | 9,168 | | 921 | | 662 | | | | | | | |
Commercial real estate | | 10,118 | | 286 | | 319 | | 4,812 | | 541 | | 389 | | | | | | | |
Total impaired loans | | $ | 399,587 | | $ | 8,617 | | $ | 9,121 | | $ | 341,723 | | $ | 8,252 | | $ | 7,607 | | | | | | | |
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The following tables set forth information about our mortgage loans receivable by segment and class at September 30, 2013 and 2012 which were modified in a TDR during the periods indicated. |
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| | Modifications During the Three Months Ended September 30, | | | | | | | | | | | | | |
| | 2013 | | 2012 | | | | | | | | | | | | | |
(Dollars In Thousands) | | Number | | Pre- | | Recorded | | Number | | Pre- | | Recorded | | | | | | | | | | | | | |
of Loans | Modification | Investment at | of Loans | Modification | Investment at | | | | | | | | | | | | |
| Recorded | September 30, 2013 | | Recorded | September 30, 2012 | | | | | | | | | | | | |
| Investment | | | Investment | | | | | | | | | | | | | |
Residential: | | | | | | | | | | | | | | | | | | | | | | | | | |
Full documentation interest-only | | 7 | | $ 2,128 | | $ 2,127 | | 2 | | $ 355 | | $ 354 | | | | | | | | | | | | | |
Full documentation amortizing | | 1 | | 161 | | 161 | | 3 | | 805 | | 786 | | | | | | | | | | | | | |
Reduced documentation interest-only | | 10 | | 3,107 | | 3,096 | | 5 | | 2,693 | | 2,690 | | | | | | | | | | | | | |
Reduced documentation amortizing | | 2 | | 387 | | 386 | | — | | — | | — | | | | | | | | | | | | | |
Multi-family | | 5 | | 3,967 | | 3,774 | | — | | — | | — | | | | | | | | | | | | | |
Commercial real estate | | 4 | | 6,488 | | 5,458 | | 3 | | 3,437 | | 3,325 | | | | | | | | | | | | | |
Total | | 29 | | $ 16,238 | | $ 15,002 | | 13 | | $ 7,290 | | $ 7,155 | | | | | | | | | | | | | |
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| | Modifications During the Nine Months Ended September 30, | | | | | | | | | | | | | |
| | 2013 | | 2012 | | | | | | | | | | | | | |
(Dollars In Thousands) | | Number | | Pre- | | Recorded | | Number | | Pre- | | Recorded | | | | | | | | | | | | | |
of Loans | Modification | Investment at | of Loans | Modification | Investment at | | | | | | | | | | | | |
| Recorded | September 30, 2013 | | Recorded | September 30, 2012 | | | | | | | | | | | | |
| Investment | | | Investment | | | | | | | | | | | | | |
Residential: | | | | | | | | | | | | | | | | | | | | | | | | | |
Full documentation interest-only | | 18 | | $ 4,579 | | $ 4,577 | | 6 | | $ 1,415 | | $ 1,384 | | | | | | | | | | | | | |
Full documentation amortizing | | 6 | | 1,662 | | 1,682 | | 3 | | 805 | | 786 | | | | | | | | | | | | | |
Reduced documentation interest-only | | 28 | | 8,957 | | 8,921 | | 12 | | 5,422 | | 5,407 | | | | | | | | | | | | | |
Reduced documentation amortizing | | 8 | | 2,470 | | 2,408 | | 5 | | 1,950 | | 1,840 | | | | | | | | | | | | | |
Multi-family | | 8 | | 6,751 | | 6,228 | | 12 | | 31,581 | | 29,129 | | | | | | | | | | | | | |
Commercial real estate | | 7 | | 10,443 | | 9,125 | | 6 | | 7,671 | | 6,120 | | | | | | | | | | | | | |
Total | | 75 | | $ 34,862 | | $ 32,941 | | 44 | | $ 48,844 | | $ 44,666 | | | | | | | | | | | | | |
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The following table sets forth information about our mortgage loans receivable by segment and class at September 30, 2013 and 2012 which were modified in a TDR during the twelve months ended September 30, 2013 and 2012 and had a payment default subsequent to the modification during the periods indicated. |
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| | For the Three Months Ended September 30, | | For the Nine Months Ended September 30, | | | | | | | | | |
| | 2013 | | 2012 | | 2013 | | 2012 | | | | | | | | | |
(Dollars In Thousands) | | Number | | Recorded | | Number | | Recorded | | Number | | Recorded | | Number | | Recorded | | | | | | | | | |
of Loans | Investment at | of Loans | Investment at | of Loans | Investment at | of Loans | Investment at | | | | | | | | |
| September 30, 2013 | | September 30, 2012 | | September 30, 2013 | | September 30, 2012 | | | | | | | | |
Residential: | | | | | | | | | | | | | | | | | | | | | | | | | |
Full documentation interest-only | | 14 | | $ 3,365 | | — | | $ — | | 22 | | $ 5,343 | | — | | $ — | | | | | | | | | |
Full documentation amortizing | | 8 | | 2,159 | | 1 | | 485 | | 10 | | 2,589 | | 1 | | 485 | | | | | | | | | |
Reduced documentation interest-only | | 20 | | 5,729 | | 3 | | 1,174 | | 24 | | 6,707 | | 5 | | 1,821 | | | | | | | | | |
Reduced documentation amortizing | | 2 | | 303 | | — | | — | | 5 | | 880 | | 5 | | 1,817 | | | | | | | | | |
Multi-family | | 1 | | 671 | | 1 | | 2,062 | | 1 | | 671 | | 2 | | 3,743 | | | | | | | | | |
Total | | 45 | | $ 12,227 | | 5 | | $ 3,721 | | 62 | | $ 16,190 | | 13 | | $ 7,866 | | | | | | | | | |
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For additional information regarding our loans receivable and allowance for loan losses, see “Asset Quality” and “Critical Accounting Policies” in Part I, Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” or “MD&A.” |
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