ISBC 2017 Form 10-K & 2018 Proxy Statement

FORM 10-K INVESTORS BANCORP, INC. AND SUBSIDIARY Notes to Consolidated Financial Statements realized gain of $836,000. These securities met the criteria of principal pay downs under 85% of the original investment amount and therefore did not result in a tainting of the held-to-maturity portfolio. The Company sells securities when, in management’s assessment, market pricing presents an economic benefit that outweighs holding such securities, and when securities with smaller balances become cost prohibitive to carry. For the year ended December 31, 2015, the Company received proceeds of $2.6 million on an equity security from the available-for-sale portfolio resulting in a gross realized gain of $1.5 million. For the year ended December 31, 2015, the Company recognized gains on available-for-sale securities of $145,000 related to capital distributions of equity securities held in the available-for-sale portfolio. For the year ended December 31, 2015, there were no sales of securities from held-to-maturity portfolio, however for the year ended December 31, 2015, the Company recognized a loss of $646,000 on a TruP security which was liquidated by its Trustee. 4. Loans Receivable, Net The detail of the loan portfolio as of December 31, 2017 and December 31, 2016 was as follows: December 31, 2017 December 31, 2016 (In thousands) Multi-family loans $ 7,802,835 7,459,131 Commercial real estate loans 4,541,347 4,445,194 Commercial and industrial loans 1,625,375 1,275,283 Construction loans 416,883 314,843 Total commercial loans 14,386,440 13,494,451 Residential mortgage loans 5,025,266 4,710,373 Consumer and other loans 670,820 596,922 Total loans excluding PCI loans 20,082,526 18,801,746 PCI loans 8,322 8,956 Deferred fees and premiums on purchased loans, net (1) (7,778) (12,474) Allowance for loan losses (230,969) (228,373) Net loans $19,852,101 18,569,855 (1) Included in deferred fees and premiums are accretable purchase accounting adjustments in connection with loans acquired. Allowance for Loan Losses An analysis of the allowance for loan losses is summarized as follows: Years Ended December 31, 2017 2016 2015 (In thousands) Balance at beginning of the period $228,373 218,505 200,284 Loans charged off (19,209) (14,997) (12,216) Recoveries 5,555 5,115 4,437 Net charge-offs (13,654) (9,882) (7,779) Provision for loan losses 16,250 19,750 26,000 Balance at end of the period $230,969 228,373 218,505 96