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EX-31.1 - EXHIBIT 31.1 - ASTORIA FINANCIAL CORPaf20150630ex31d1.htm
EX-31.2 - EXHIBIT 31.2 - ASTORIA FINANCIAL CORPaf20150630ex31d2.htm
EX-32.1 - EXHIBIT 32.1 - ASTORIA FINANCIAL CORPaf20150630ex32d1.htm

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q

x
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended June 30, 2015

OR
¨
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the transition period from         to        
 
Commission file number 001-11967
 
ASTORIA FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)
Delaware
 
11-3170868
(State or other jurisdiction of
 
(I.R.S. Employer Identification
incorporation or organization)
 
Number)
 
 
 
One Astoria Bank Plaza, Lake Success, New York
 
11042-1085
(Address of principal executive offices)
 
(Zip Code)

(516) 327-3000
(Registrant’s telephone number, including area code)
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES x  NO ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). YES x  NO ¨
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company (as these items are defined in Rule 12b-2 of the Exchange Act).
Large accelerated filer x Accelerated filer ¨    Non-accelerated filer ¨    Smaller reporting company ¨
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  YES ¨  NO x
 
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
 
 
Classes of Common Stock
 
Number of Shares Outstanding, July 31, 2015
 
$0.01 Par Value
 
100,793,269



 
 
Page
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




1


ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Statements of Financial Condition
 
 
(Unaudited)
 
 
 
 
 
(In Thousands, Except Share Data)
At June 30, 2015
 
At December 31, 2014
Assets:
 
 

 
 
 
 

 
Cash and due from banks
 
$
168,790

 
 
 
$
143,185

 
Available-for-sale securities:
 
 

 
 
 
 

 
Encumbered
 
107,523

 
 
 
110,784

 
Unencumbered
 
321,222

 
 
 
273,575

 
Total available-for-sale securities
 
428,745

 
 
 
384,359

 
Held-to-maturity securities, fair value of $2,152,091 and $2,131,371, respectively:
 
 

 
 
 
 

 
Encumbered
 
1,097,541

 
 
 
1,147,991

 
Unencumbered
 
1,059,341

 
 
 
985,813

 
Total held-to-maturity securities
 
2,156,882

 
 
 
2,133,804

 
Federal Home Loan Bank of New York stock, at cost
 
138,384

 
 
 
140,754

 
Loans held-for-sale, net
 
8,318

 
 
 
7,640

 
Loans receivable
 
11,514,056

 
 
 
11,957,448

 
Allowance for loan losses
 
(107,500
)
 
 
 
(111,600
)
 
Loans receivable, net
 
11,406,556

 
 
 
11,845,848

 
Mortgage servicing rights, net
 
11,463

 
 
 
11,401

 
Accrued interest receivable
 
36,752

 
 
 
36,628

 
Premises and equipment, net
 
110,950

 
 
 
111,622

 
Goodwill
 
185,151

 
 
 
185,151

 
Bank owned life insurance
 
435,144

 
 
 
430,768

 
Real estate owned, net
 
23,399

 
 
 
35,723

 
Other assets
 
184,822

 
 
 
173,138

 
Total assets
 
$
15,295,356

 
 
 
$
15,640,021

 
Liabilities:
 
 

 
 
 
 

 
Deposits:
 
 

 
 
 
 

 
Savings
 
$
2,186,470

 
 
 
$
2,237,142

 
Money market
 
2,446,428

 
 
 
2,373,484

 
NOW and demand deposit
 
2,287,319

 
 
 
2,198,777

 
Certificates of deposit
 
2,307,553

 
 
 
2,695,506

 
Total deposits
 
9,227,770

 
 
 
9,504,909

 
Federal funds purchased
 
370,000

 
 
 
455,000

 
Reverse repurchase agreements
 
1,100,000

 
 
 
1,100,000

 
Federal Home Loan Bank of New York advances
 
2,340,000

 
 
 
2,384,000

 
Other borrowings, net
 
248,957

 
 
 
248,691

 
Mortgage escrow funds
 
132,902

 
 
 
115,400

 
Accrued expenses and other liabilities
 
247,205

 
 
 
251,951

 
Total liabilities
 
13,666,834

 
 
 
14,059,951

 
Stockholders’ Equity:
 
 

 
 
 
 

 
Preferred stock, $1.00 par value; 5,000,000 shares authorized:
 
 

 
 
 
 

 
Series C (150,000 shares authorized; and 135,000 shares issued and outstanding)
 
129,796

 
 
 
129,796

 
Common stock, $0.01 par value (200,000,000 shares authorized; 166,494,888 shares issued; and 100,791,839 and 99,940,399 shares outstanding, respectively)
 
1,665

 
 
 
1,665

 
Additional paid-in capital
 
895,984

 
 
 
897,049

 
Retained earnings
 
2,024,611

 
 
 
1,992,833

 
Treasury stock (65,703,049 and 66,554,489 shares, at cost, respectively)
 
(1,357,727
)
 
 
 
(1,375,322
)
 
Accumulated other comprehensive loss
 
(65,807
)
 
 
 
(65,951
)
 
Total stockholders’ equity
 
1,628,522

 
 
 
1,580,070

 
Total liabilities and stockholders’ equity
 
$
15,295,356

 
 
 
$
15,640,021

 
See accompanying Notes to Consolidated Financial Statements.

2


ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
 
 
For the 
 Three Months Ended 
 June 30,
 
For the 
 Six Months Ended 
 June 30,
(In Thousands, Except Share Data)
2015
 
2014
 
2015
 
2014
Interest income:
 

 
 

 
 
 
 
Residential mortgage loans
$
51,375

 
$
62,294

 
$
105,337

 
$
127,248

Multi-family and commercial real estate mortgage loans
48,611

 
43,347

 
96,103

 
86,737

Consumer and other loans
2,242

 
2,085

 
4,432

 
4,171

Mortgage-backed and other securities
15,238

 
14,116

 
30,308

 
27,793

Interest-earning cash accounts
107

 
80

 
196

 
149

Federal Home Loan Bank of New York stock
1,461

 
1,458

 
2,983

 
3,291

Total interest income
119,034

 
123,380

 
239,359

 
249,389

Interest expense:
 

 
 

 
 
 
 
Deposits
9,944

 
12,823

 
20,673

 
26,052

Borrowings
23,940

 
24,783

 
47,815

 
49,593

Total interest expense
33,884

 
37,606

 
68,488

 
75,645

Net interest income
85,150

 
85,774

 
170,871

 
173,744

Provision for loan losses credited to operations
(2,967
)
 
(5,742
)
 
(3,310
)
 
(4,111
)
Net interest income after provision for loan losses
88,117

 
91,516

 
174,181

 
177,855

Non-interest income:
 

 
 

 
 
 
 
Customer service fees
8,871

 
9,030

 
17,082

 
18,050

Other loan fees
553

 
647

 
1,106

 
1,255

Gain on sales of securities
72

 

 
72

 

Mortgage banking income, net
2,076

 
610

 
2,403

 
1,410

Income from bank owned life insurance
2,179

 
2,139

 
4,376

 
4,128

Other
1,591

 
1,419

 
3,236

 
2,671

Total non-interest income
15,342

 
13,845

 
28,275

 
27,514

Non-interest expense:
 

 
 

 
 
 
 
General and administrative:
 

 
 

 
 
 
 
Compensation and benefits
37,655

 
34,415

 
73,936

 
67,803

Occupancy, equipment and systems
18,980

 
17,793

 
38,638

 
35,967

Federal deposit insurance premium
4,335

 
7,277

 
8,536

 
15,846

Advertising
2,801

 
2,438

 
5,065

 
4,150

Other
8,105

 
9,670

 
15,813

 
18,050

Total non-interest expense
71,876

 
71,593

 
141,988

 
141,816

Income before income tax expense
31,583

 
33,768

 
60,468

 
63,553

Income tax expense
152

 
11,468

 
9,730

 
9,704

Net income
31,431

 
22,300

 
50,738

 
53,849

Preferred stock dividends
2,194

 
2,194

 
4,388

 
4,388

Net income available to common shareholders
$
29,237

 
$
20,106

 
$
46,350

 
$
49,461

 
 
 
 
 
 
 
 
Basic earnings per common share
$
0.29

 
$
0.20

 
$
0.46

 
$
0.50

Diluted earnings per common share
$
0.29

 
$
0.20

 
$
0.46

 
$
0.50

 
 
 
 
 
 
 
 
Basic weighted average common shares outstanding
99,664,442

 
98,275,886

 
99,459,376

 
98,191,434

Diluted weighted average common shares outstanding
99,664,442

 
98,275,886

 
99,459,376

 
98,191,434


 See accompanying Notes to Consolidated Financial Statements.

3


ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Statements of Comprehensive Income (Unaudited)
 
 
For the 
 Three Months Ended 
 June 30,
 
For the 
 Six Months Ended 
 June 30,
(In Thousands)
2015
 
2014
 
2015
 
2014
 
 
 
 
 
 
 
 
Net income
$
31,431

 
$
22,300

 
$
50,738

 
$
53,849

 
 
 
 
 
 
 
 
Other comprehensive (loss) income, net of tax:
 

 
 

 
 

 
 

Net unrealized (loss) gain on securities available-for-sale:
 
 
 
 


 


Net unrealized holding (loss) gain on securities arising during the period
(2,748
)
 
4,699

 
(755
)
 
7,692

Reclassification adjustment for gain on sales of securities included in net income
(43
)
 

 
(43
)
 

Net unrealized (loss) gain on securities available-for-sale
(2,791
)
 
4,699

 
(798
)
 
7,692

 
 
 
 
 
 
 
 
Reclassification adjustment for net actuarial loss on pension plans and other postretirement benefits included in net income
417

 
161

 
886

 
296

 
 
 
 
 
 
 
 
Reclassification adjustment for prior service cost on pension plans and other postretirement benefits included in net income
27

 
31

 
56

 
61

 
 
 
 
 
 
 
 
Total other comprehensive (loss) income, net of tax
(2,347
)
 
4,891

 
144

 
8,049

 
 
 
 
 
 
 
 
Comprehensive income
$
29,084

 
$
27,191

 
$
50,882

 
$
61,898

 
See accompanying Notes to Consolidated Financial Statements.


4


ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Statement of Changes in Stockholders’ Equity (Unaudited)
For the Six Months Ended June 30, 2015
 
(In Thousands, Except Share Data)
Total
 
Preferred Stock
 
Common Stock
 
Additional Paid-in Capital
 
Retained Earnings
 
Treasury Stock
 
Accumulated Other Comprehensive Loss
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at December 31, 2014
$
1,580,070

 
$
129,796

 
$
1,665

 
$
897,049

 
$
1,992,833

 
$
(1,375,322
)
 
 
$
(65,951
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
50,738

 

 

 

 
50,738

 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other comprehensive income, net of tax
144

 

 

 

 

 

 
 
144

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dividends on preferred stock ($32.50 per share)
(4,388
)
 

 

 

 
(4,388
)
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dividends on common stock ($0.08 per share)
(8,024
)
 

 

 

 
(8,024
)
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales of treasury stock (475,182 shares)
6,055

 

 

 

 
(3,765
)
 
9,820

 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Restricted stock grants (426,552 shares)

 

 

 
(5,562
)
 
(3,252
)
 
8,814

 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Forfeitures of restricted stock (50,294 shares)

 

 

 
583

 
456

 
(1,039
)
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock-based compensation
3,916

 

 

 
3,903

 
13

 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net tax benefit excess from stock-based compensation
11

 

 

 
11

 

 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at June 30, 2015
$
1,628,522

 
$
129,796

 
$
1,665

 
$
895,984

 
$
2,024,611

 
$
(1,357,727
)
 
 
$
(65,807
)
 
 
See accompanying Notes to Consolidated Financial Statements.


5


ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows (Unaudited)
 
 
For the Six Months Ended June 30,
(In Thousands)
2015
 
2014
Cash flows from operating activities:
 
 

 
 
 
 

 
Net income
 
$
50,738

 
 
 
$
53,849

 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 

 
 
 
 

 
Net amortization on loans
 
6,219

 
 
 
5,678

 
Net amortization on securities and borrowings
 
4,855

 
 
 
4,701

 
Net provision for loan and real estate losses credited to operations
 
(2,774
)
 
 
 
(3,287
)
 
Depreciation and amortization
 
6,134

 
 
 
5,804

 
Net gain on sales of loans and securities
 
(1,081
)
 
 
 
(816
)
 
Mortgage servicing rights amortization and valuation allowance adjustments, net
 
611

 
 
 
1,437

 
Stock-based compensation
 
3,916

 
 
 
4,253

 
Originations of loans held-for-sale
 
(61,079
)
 
 
 
(40,957
)
 
Proceeds from sales and principal repayments of loans held-for-sale
 
60,759

 
 
 
41,650

 
  Increase in accrued interest receivable
 
(124
)
 
 
 
(154
)
 
Bank owned life insurance income and insurance proceeds received, net
 
(4,376
)
 
 
 
(3,045
)
 
Increase in other assets
 
(11,436
)
 
 
 
(54
)
 
(Decrease) increase in accrued expenses and other liabilities
 
(3,882
)
 
 
 
5,461

 
Net cash provided by operating activities
 
48,480

 
 
 
74,520

 
Cash flows from investing activities:
 
 

 
 
 
 

 
Originations of loans receivable
 
(767,399
)
 
 
 
(726,125
)
 
Loan purchases through third parties
 
(117,596
)
 
 
 
(72,375
)
 
Principal payments on loans receivable
 
1,311,864

 
 
 
937,327

 
Proceeds from sales of delinquent and non-performing loans
 
6,183

 
 
 
1,310

 
Purchases of securities held-to-maturity
 
(272,524
)
 
 
 
(276,388
)
 
Purchases of securities available-for-sale
 
(88,156
)
 
 
 

 
Principal payments on securities held-to-maturity
 
245,317

 
 
 
161,171

 
Principal payments on securities available-for-sale
 
22,977

 
 
 
20,194

 
Proceeds from sales of securities available-for-sale
 
19,026

 
 
 

 
Net redemptions of Federal Home Loan Bank of New York stock
 
2,370

 
 
 
1,919

 
Proceeds from sales of real estate owned, net
 
15,524

 
 
 
29,314

 
Purchases of premises and equipment, net of proceeds from sales
 
(5,478
)
 
 
 
(4,400
)
 
Net cash provided by investing activities
 
372,108

 
 
 
71,947

 
Cash flows from financing activities:
 
 

 
 
 
 

 
Net decrease in deposits
 
(277,139
)
 
 
 
(195,939
)
 
Net (decrease) increase in borrowings with original terms of three months or less
 
(129,000
)
 
 
 
163,000

 
Repayments of borrowings with original terms greater than three months
 

 
 
 
(100,000
)
 
Net increase in mortgage escrow funds
 
17,502

 
 
 
18,228

 
Proceeds from sales of treasury stock
 
6,055

 
 
 
4,064

 
Cash dividends paid to stockholders
 
(12,412
)
 
 
 
(12,335
)
 
Net tax benefit excess from stock-based compensation
 
11

 
 
 

 
Net cash used in financing activities
 
(394,983
)
 
 
 
(122,982
)
 
Net increase in cash and cash equivalents
 
25,605

 
 
 
23,485

 
Cash and cash equivalents at beginning of period
 
143,185

 
 
 
121,950

 
Cash and cash equivalents at end of period
 
$
168,790

 
 
 
$
145,435

 
 
 
 
 
 
 
 
 
Supplemental disclosures:
 
 

 
 
 
 

 
Interest paid
 
$
68,450

 
 
 
$
75,519

 
Income taxes paid
 
$
17,732

 
 
 
$
6,741

 
Additions to real estate owned
 
$
3,736

 
 
 
$
31,646

 
Loans transferred to held-for-sale
 
$
6,205

 
 
 
$
187,769

 
 
See accompanying Notes to Consolidated Financial Statements.

6


ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Unaudited)
 
1.  Basis of Presentation

The accompanying consolidated financial statements include the accounts of Astoria Financial Corporation and its wholly-owned subsidiaries: Astoria Bank and its subsidiaries, referred to as Astoria Bank, and AF Insurance Agency, Inc.  As used in this quarterly report, “we,” “us” and “our” refer to Astoria Financial Corporation and its consolidated subsidiaries.  All significant inter-company accounts and transactions have been eliminated in consolidation.

In our opinion, the accompanying consolidated financial statements contain all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of our financial condition as of June 30, 2015 and December 31, 2014, our results of operations and other comprehensive income for the three and six months ended June 30, 2015 and 2014, changes in our stockholders’ equity for the six months ended June 30, 2015 and our cash flows for the six months ended June 30, 2015 and 2014.  In preparing the consolidated financial statements, we are required to make estimates and assumptions that affect the reported amounts of assets and liabilities for the consolidated statements of financial condition as of June 30, 2015 and December 31, 2014, and amounts of revenues, expenses and other comprehensive income in the consolidated statements of income and comprehensive income for the three and six months ended June 30, 2015 and 2014.  The results of operations and other comprehensive income for the three and six months ended June 30, 2015 are not necessarily indicative of the results of operations and other comprehensive income to be expected for the remainder of the year.  Certain information and note disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles, or GAAP, have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission, or SEC. 

These consolidated financial statements should be read in conjunction with our December 31, 2014 audited consolidated financial statements and related notes included in our 2014 Annual Report on Form 10-K.

Changes in Income Tax Legislation

New York State, or NY State, income tax reform legislation, or the 2014 NY State legislation, was enacted on March 31, 2014.  While the 2014 NY State legislation generally became effective in 2015, the nature of the changes resulted in the recognition of certain deferred tax assets in the 2014 first quarter. Prior to the effective date of the 2014 NY State legislation, we were subject to taxation in NY State under an alternative taxation method based on assets.  The 2014 NY State legislation, among other things, removed that alternative method.  Further, the new law (1) required that we be taxed in a manner that resulted in an increase in our NY State income tax expense beginning in 2015 and (2) caused us to recognize temporary differences and net operating loss carry-forward benefits in 2014 which we were unable to recognize previously.

On April 13, 2015, a package of additional legislation, or the 2015 NY State legislation, was signed into law in NY State that, among other things, (1) largely conforms New York City, or NY City, banking income tax laws to the 2014 NY State legislation, and (2) makes technical corrections to the 2014 NY State legislation. The 2015 NY State legislation is effective retroactively to tax years beginning on or after January 1, 2015. In addition, on June 30, 2015, the State of Connecticut enacted tax legislation that changed the method for calculating Connecticut income taxes, resulting in the recognition of certain deferred tax assets. Under GAAP, the effects of changes in tax law on current and deferred taxes are accounted for in the period that

7


includes the enactment date of the change, which means that we recorded the impacts of the legislation in the second quarter of 2015.

The tax law changes effective in 2014 and 2015 resulted in an increase in our net deferred tax asset with a corresponding reduction in income tax expense of $11.5 million in the 2014 first quarter and a reduction in income tax expense of $11.4 million in the 2015 second quarter comprised of (i) the elimination of our valuation allowance totaling $7.2 million, which previously offset certain deferred tax assets, and (ii) the recognition of additional deferred tax assets totaling $4.2 million, primarily related to NY City taxation.

As a result of these changes to state and local tax legislation, we expect our effective income tax rate in future periods to be higher than that in prior periods.

2.  Securities
 
The following tables set forth the amortized cost and estimated fair value of securities available-for-sale and held-to-maturity at the dates indicated.
 
At June 30, 2015
(In Thousands)
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
Available-for-sale:
 

 
 
 

 
 
 
 

 
 
 

Residential mortgage-backed securities:
 

 
 
 

 
 
 
 

 
 
 

GSE (1) issuance REMICs and CMOs (2)
$
314,975

 
 
$
3,663

 
 
 
$
(2,238
)
 
 
$
316,400

Non-GSE issuance REMICs and CMOs
3,986

 
 
22

 
 
 
(2
)
 
 
4,006

GSE pass-through certificates
11,738

 
 
573

 
 
 
(2
)
 
 
12,309

Total residential mortgage-backed securities
330,699

 
 
4,258

 
 
 
(2,242
)
 
 
332,715

Obligations of GSEs
98,682

 
 

 
 
 
(2,654
)
 
 
96,028

Fannie Mae stock
15

 
 

 
 
 
(13
)
 
 
2

Total securities available-for-sale
$
429,396

 
 
$
4,258

 
 
 
$
(4,909
)
 
 
$
428,745

Held-to-maturity:
 

 
 
 

 
 
 
 

 
 
 

Residential mortgage-backed securities:
 

 
 
 

 
 
 
 

 
 
 

GSE issuance REMICs and CMOs
$
1,450,045

 
 
$
13,315

 
 
 
$
(15,281
)
 
 
$
1,448,079

Non-GSE issuance REMICs and CMOs
298

 
 

 
 
 
(7
)
 
 
291

GSE pass-through certificates
260,948

 
 
2,009

 
 
 
(2,837
)
 
 
260,120

Total residential mortgage-backed securities
1,711,291

 
 
15,324

 
 
 
(18,125
)
 
 
1,708,490

Multi-family mortgage-backed securities:
 

 
 
 

 
 
 
 

 
 
 

GSE issuance REMICs
237,771

 
 
1,451

 
 
 
(553
)
 
 
238,669

Obligations of GSEs
207,344

 
 
21

 
 
 
(2,909
)
 
 
204,456

Other
476

 
 

 
 
 

 
 
476

Total securities held-to-maturity
$
2,156,882

 
 
$
16,796

 
 
 
$
(21,587
)
 
 
$
2,152,091

 
(1)    Government-sponsored enterprise
(2)    Real estate mortgage investment conduits and collateralized mortgage obligations

8


 
At December 31, 2014
(In Thousands)
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
Available-for-sale:
 

 
 
 

 
 
 
 

 
 
 

Residential mortgage-backed securities:
 

 
 
 

 
 
 
 

 
 
 

GSE issuance REMICs and CMOs
$
266,946

 
 
$
3,608

 
 
 
$
(1,556
)
 
 
$
268,998

Non-GSE issuance REMICs and CMOs
5,071

 
 
34

 
 
 
(1
)
 
 
5,104

GSE pass-through certificates
12,919

 
 
640

 
 
 
(2
)
 
 
13,557

Total residential mortgage-backed securities
284,936

 
 
4,282

 
 
 
(1,559
)
 
 
287,659

Obligations of GSEs
98,680

 
 

 
 
 
(1,982
)
 
 
96,698

Fannie Mae stock
15

 
 

 
 
 
(13
)
 
 
2

Total securities available-for-sale
$
383,631

 
 
$
4,282

 
 
 
$
(3,554
)
 
 
$
384,359

Held-to-maturity:
 

 
 
 

 
 
 
 

 
 
 

Residential mortgage-backed securities:
 

 
 
 

 
 
 
 

 
 
 

GSE issuance REMICs and CMOs
$
1,575,402

 
 
$
14,536

 
 
 
$
(14,041
)
 
 
$
1,575,897

Non-GSE issuance REMICs and CMOs
2,482

 
 
31

 
 
 
(7
)
 
 
2,506

GSE pass-through certificates
281,685

 
 
2,442

 
 
 
(3,877
)
 
 
280,250

Total residential mortgage-backed securities
1,859,569

 
 
17,009

 
 
 
(17,925
)
 
 
1,858,653

Multi-family mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
GSE issuance REMICs
154,381

 
 
554

 
 
 
(590
)
 
 
154,345

Obligations of GSEs
119,336

 
 
42

 
 
 
(1,523
)
 
 
117,855

Other
518

 
 

 
 
 

 
 
518

Total securities held-to-maturity
$
2,133,804

 
 
$
17,605

 
 
 
$
(20,038
)
 
 
$
2,131,371


The following tables set forth the estimated fair values of securities with gross unrealized losses at the dates indicated, segregated between securities that have been in a continuous unrealized loss position for less than twelve months and those that have been in a continuous unrealized loss position for twelve months or longer at the dates indicated.
 
 
At June 30, 2015
 
 
Less Than Twelve Months
 
Twelve Months or Longer
 
Total
 
(In Thousands)
Estimated
Fair Value
 
Gross
Unrealized
Losses
 
Estimated
Fair Value
 
Gross Unrealized
Losses
 
Estimated
Fair Value
 
Gross Unrealized
Losses
Available-for-sale:
 

 
 
 

 
 
 

 
 
 

 
 
 

 
 
 

 
Residential mortgage-backed securities:
 

 
 
 

 
 
 

 
 
 

 
 
 

 
 
 

 
GSE issuance REMICs and CMOs
$
119,668

 
 
$
(2,238
)
 
 
$

 
 
$

 
 
$
119,668

 
 
$
(2,238
)
 
Non-GSE issuance REMICs and CMOs
32

 
 
(1
)
 
 
83

 
 
(1
)
 
 
115

 
 
(2
)
 
GSE pass-through certificates
43

 
 
(1
)
 
 
97

 
 
(1
)
 
 
140

 
 
(2
)
 
Obligations of GSEs
24,492

 
 
(491
)
 
 
71,536

 
 
(2,163
)
 
 
96,028

 
 
(2,654
)
 
Fannie Mae stock

 
 

 
 
2

 
 
(13
)
 
 
2

 
 
(13
)
 
Total temporarily impaired securities
available-for-sale
$
144,235

 
 
$
(2,731
)
 
 
$
71,718

 
 
$
(2,178
)
 
 
$
215,953

 
 
$
(4,909
)
 
Held-to-maturity:
 

 
 
 

 
 
 

 
 
 

 
 
 

 
 
 

 
Residential mortgage-backed securities:
 

 
 
 

 
 
 

 
 
 

 
 
 

 
 
 

 
GSE issuance REMICs and CMOs
$
378,600

 
 
$
(2,836
)
 
 
$
317,649

 
 
$
(12,445
)
 
 
$
696,249

 
 
$
(15,281
)
 
Non-GSE issuance REMICs and CMOs

 
 

 
 
291

 
 
(7
)
 
 
291

 
 
(7
)
 
GSE pass-through certificates
39,186

 
 
(273
)
 
 
115,769

 
 
(2,564
)
 
 
154,955

 
 
(2,837
)
 
Multi-family mortgage-backed securities:
 

 
 
 

 
 
 

 
 
 

 
 
 

 
 
 

 
GSE issuance REMICs
94,128

 
 
(553
)
 
 

 
 

 
 
94,128

 
 
(553
)
 
Obligations of GSEs
131,976

 
 
(1,977
)
 
 
24,069

 
 
(932
)
 
 
156,045

 
 
(2,909
)
 
Total temporarily impaired securities
held-to-maturity
$
643,890

 
 
$
(5,639
)
 
 
$
457,778

 
 
$
(15,948
)
 
 
$
1,101,668

 
 
$
(21,587
)
 
 

9


 
At December 31, 2014
 
 
Less Than Twelve Months
 
Twelve Months or Longer
 
Total
 
(In Thousands)
Estimated
Fair Value
 
Gross
Unrealized
Losses
 
Estimated
Fair Value
 
Gross
Unrealized
Losses
 
Estimated
Fair Value
 
Gross
Unrealized
Losses
Available-for-sale:
 

 
 
 

 
 
 

 
 
 

 
 
 

 
 
 

 
Residential mortgage-backed securities:
 

 
 
 

 
 
 

 
 
 

 
 
 

 
 
 

 
GSE issuance REMICs and CMOs
$
20,587

 
 
$
(159
)
 
 
$
75,444

 
 
$
(1,397
)
 
 
$
96,031

 
 
$
(1,556
)
 
Non-GSE issuance REMICs and CMOs

 
 

 
 
96

 
 
(1
)
 
 
96

 
 
(1
)
 
GSE pass-through certificates
53

 
 
(1
)
 
 
64

 
 
(1
)
 
 
117

 
 
(2
)
 
Obligations of GSEs
24,586

 
 
(395
)
 
 
72,112

 
 
(1,587
)
 
 
96,698

 
 
(1,982
)
 
Fannie Mae stock

 
 

 
 
2

 
 
(13
)
 
 
2

 
 
(13
)
 
Total temporarily impaired securities
available-for-sale
$
45,226

 
 
$
(555
)
 
 
$
147,718

 
 
$
(2,999
)
 
 
$
192,944

 
 
$
(3,554
)
 
Held-to-maturity:
 

 
 
 

 
 
 

 
 
 

 
 
 

 
 
 

 
Residential mortgage-backed securities:
 

 
 
 

 
 
 

 
 
 

 
 
 

 
 
 

 
GSE issuance REMICs and CMOs
$
121,861

 
 
$
(302
)
 
 
$
500,348

 
 
$
(13,739
)
 
 
$
622,209

 
 
$
(14,041
)
 
Non-GSE issuance REMICs and CMOs

 
 

 
 
294

 
 
(7
)
 
 
294

 
 
(7
)
 
GSE pass-through certificates

 
 

 
 
164,453

 
 
(3,877
)
 
 
164,453

 
 
(3,877
)
 
Multi-family mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 


 
 


 
GSE issuance REMICs
100,355

 
 
(590
)
 
 

 
 

 
 
100,355

 
 
(590
)
 
Obligations of GSEs

 
 

 
 
79,413

 
 
(1,523
)
 
 
79,413

 
 
(1,523
)
 
Total temporarily impaired securities
held-to-maturity
$
222,216

 
 
$
(892
)
 
 
$
744,508

 
 
$
(19,146
)
 
 
$
966,724

 
 
$
(20,038
)
 

We held 94 securities which had an unrealized loss at June 30, 2015 and 80 securities which had an unrealized loss at December 31, 2014At June 30, 2015 and December 31, 2014, substantially all of the securities in an unrealized loss position had a fixed interest rate and the cause of the temporary impairment was directly related to changes in interest rates.  We generally view changes in fair value caused by changes in interest rates as temporary, which is consistent with our experience.  None of the unrealized losses are related to credit losses.  Therefore, at June 30, 2015 and December 31, 2014, the impairments were deemed temporary based on (1) the direct relationship of the decline in fair value to movements in interest rates, (2) the estimated remaining life and high credit quality of the investments and (3) the fact that we had no intention to sell these securities and it was not more likely than not that we would be required to sell these securities before their anticipated recovery of the remaining amortized cost basis and we expected to recover the entire amortized cost basis of the security.

During the six months ended June 30, 2015, proceeds from sales of securities from the available-for-sale portfolio totaled $19.0 million, resulting in gross realized gains of $72,000. There were no sales of securities from the available-for-sale portfolio during the six months ended June 30, 2014.

At June 30, 2015, available-for-sale debt securities, excluding mortgage-backed securities, had an amortized cost of $98.7 million, an estimated fair value of $96.0 million and contractual maturities in 2021 and 2022At June 30, 2015, held-to-maturity debt securities, excluding mortgage-backed securities, had an amortized cost of $207.8 million, an estimated fair value of $204.9 million and contractual maturities primarily in 2021 through 2025.  Actual maturities may differ from contractual maturities because issuers may have the right to prepay or call obligations with or without prepayment penalties.
 
At June 30, 2015, the amortized cost of callable securities in our portfolio totaled $306.0 million, of which $289.6 million are callable within one year and at various times thereafter. The balance of accrued interest receivable for securities totaled $7.1 million at June 30, 2015 and $6.7 million at December 31, 2014.
 

10


3. Loans Receivable and Allowance for Loan Losses
 
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.
 
At June 30, 2015
 
Past Due
 
 
 
 
 
 
(In Thousands)
30-59 Days
 
60-89 Days
 
90 Days or More
 
Total Past Due
 
Current
 
Total
Accruing loans:
 

 
 

 
 

 
 

 
 

 
 

Mortgage loans (gross):
 

 
 

 
 

 
 

 
 

 
 

Residential:
 

 
 

 
 

 
 

 
 

 
 

Full documentation interest-only
$
10,810

 
$
3,769

 
$

 
$
14,579

 
$
624,504

 
$
639,083

Full documentation amortizing
31,191

 
5,124

 

 
36,315

 
4,731,728

 
4,768,043

Reduced documentation interest-only
15,684

 
4,917

 

 
20,601

 
451,641

 
472,242

Reduced documentation amortizing
9,483

 
2,824

 

 
12,307

 
424,345

 
436,652

Total residential
67,168

 
16,634

 

 
83,802

 
6,232,218

 
6,316,020

Multi-family
5,023

 
1,127

 
737

 
6,887

 
3,931,487

 
3,938,374

Commercial real estate
1,692

 

 
2,234