NYCB 2017 Annual Report

107 The following table presents informati on regarding the Company’s covered loans at December 31, 2016 that were 90 days or more past due: (in thousands) Covered Loans 90 Days or More Past Due: One-to-four family $124,820 Other loans 6,645 Total covered loans 90 days or more past due $131,465 The following table presents information regarding the Company’s covered loans at December 31, 2016 that were 30 to 89 days past due: (in thousands) Covered Loans 30-89 Days Past Due: One-to-four family $21,112 Other loans 1,536 Total covered loans 30-89 days past due $22,648 At December 31, 2016, the Company had $22.6 million of covered loans that were 30 to 89 days past due, and covered loans of $131.5 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 remainder of the Company’s covered loan portfolio totaled $1.5 billion at December 31, 2016 and were 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 represented the contractual balance, reduced by the portion that was expected to be uncollectible (i.e., the non-accretable difference) and by an accretable yield (discount) that was recognized as interest income. It is important to note that management’s judgment was required in reclassifying loans subject to ASC 310-30 as performing loans, and such judgment was dependent on having a reasonable expectation about the timing and amount of the cash flows to be collected, even if the loan was contractually past due. The primary credit quality indicator for covered loans is the expectation of underlying cash flows. In the twelve months ended December 31, 2016, the Company recorded recoveries of losses on covered loans of $23.7 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 $19.0 million that was recorded in “Non - interest income.” NOTE 6: ALLOWANCES FOR LOAN LOSSES The following tables provide add itional information regarding the Company’s allowances for losses on non - covered loans and covered loans, based upon the method of evaluating loan impairment: (in thousands) Mortgage Other Total Allowances for Loan Losses at December 31, 2017: Loans collectively evaluated for impairment $128,275 $ 29,771 $ 158,046 (in thousands) Mortgage Other Total Allowances for Loan Losses at December 31, 2016: Loans individually evaluated for impairment $ -- $ 577 $ 577 Loans collectively evaluated for impairment 123,925 32,022 155,947 Acquired loans with deteriorated credit quality 11,984 13,483 25,467 Total $135,909 $ 46,082 $181,991