NYCB 2017 Annual Report

110 Allowance for Losses on Covered Loans Covered loans were reported exclusive of the FDIC loss share receivable. The covered loans acquired in the AmTrust and Desert Hills acquisitions were reviewed for collectability based on the expectations of cash flows from these loans. Covered loans were aggregated into pools of loans with common characteristics. In determining the allowance for losses on covered loans, the Company periodically performed an analysis to estimate the expected cash flows for each of the pools of loans. The Company recorded a provision for (recovery of) losses on covered loans to the extent that the expected cash flows from a loan pool had decreased or increased since the acquisition date. Accordingly, if there was 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 was recorded as a provision for covered loan losses charged to earnings, and the allowance for covered loan losses was increased. A related credit to non-interest income and an increase in the LSA are recognized at the same time, and measured based on the applicable loss sharing agreement percentage. If there was 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 was recorded as a recovery of the prior-period impairment charged to earnings, and the allowance for covered loan losses was reduced. A related debit to non-interest income and a decrease in the LSA was recognized at the same time, and measured based on the applicable LSA percentage. The following table summarizes activity in the allowance for losses on covered loans for the years ended December 31, 2017 and 2016: December 31, (in thousands) 2017 2016 Balance, beginning of period $ 23,701 $31,395 Recovery of losses on covered loans (23,701) (7,694) Balance, end of period $ -- $23,701 NOTE 7: DEPOSITS The following table sets forth the weighted average interest rates for each type of deposit at December 31, 2017 and 2016: December 31, 2017 2016 (dollars in thousands) Amount Percent of Total Weighted Average Interest Rate Amount Percent of Total Weighted Average Interest Rate (1) Interest-bearing checking and money market accounts $12,936,301 44.45% 0.23% $13,395,080 46.37% 0.55% Savings accounts 5,210,001 17.90 0.52 5,280,374 18.28 0.46 Certificates of deposit 8,643,646 29.70 1.31 7,577,170 26.23 1.12 Non-interest-bearing accounts 2,312,215 7.95 -- 2,635,279 9.12 -- Total deposits $29,102,163 100.00% 0.58% $28,887,903 100.00% 0.63% At both December 31, 2017 and 2016, the aggregate amount of deposits that had been reclassified as loan balances (i.e., overdrafts) was $3.1 million.