ISBC 2017 Form 10-K & 2018 Proxy Statement

FORM 10-K INVESTORS BANCORP, INC. AND SUBSIDIARY Notes to Consolidated Financial Statements value is not in excess of the fair value of the collateral. Loans are generally charged off after an analysis is completed which indicates that collectability of the full principal balance is in doubt. Although we believe we have established and maintained the allowance for loan losses at adequate levels, additions may be necessary if the current economic environment deteriorates. Management uses relevant information available; however, the level of the allowance for loan losses remains an estimate that is subject to significant judgment and short-term change. In addition, the Federal Deposit Insurance Corporation and the New Jersey Department of Banking and Insurance, as an integral part of their examination process, will periodically review our allowance for loan losses. Such agencies may require us to recognize adjustments to the allowance based on their judgments about information available to them at the time of their examination. The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of the years ended December 31, 2017 and 2016: December 31, 2017 Multi- Family Loans Commercial Real Estate Loans Commercial and Industrial Loans Construction Loans Residential Mortgage Loans Consumer and Other Loans Unallocated Total (Dollars in thousands) Allowance for loan losses: Beginning balance- December 31, 2016 $ 95,561 52,796 43,492 11,653 19,831 2,850 2,190 228,373 Charge-offs (6) (8,072) (5,656) (100) (4,875) (500) — (19,209) Recoveries 1,677 549 200 — 2,816 313 — 5,555 Provision (15,763) 10,864 16,527 56 4,063 436 67 16,250 Ending balance- December 31, 2017 $ 81,469 56,137 54,563 11,609 21,835 3,099 2,257 230,969 Individually evaluated for impairment $ — — — — 1,678 97 — 1,775 Collectively evaluated for impairment 81,469 56,137 54,563 11,609 20,157 3,002 2,257 229,194 Loans acquired with deteriorated credit quality — — — — — — — — Balance at December 31, 2017 $ 81,469 56,137 54,563 11,609 21,835 3,099 2,257 230,969 Loans: Individually evaluated for impairment $ 14,776 29,736 8,989 — 26,376 879 — 80,756 Collectively evaluated for impairment 7,788,059 4,511,611 1,616,386 416,883 4,998,890 669,941 — 20,001,770 Loans acquired with deteriorated credit quality — 6,754 — — 1,251 317 — 8,322 Balance at December 31, 2017 $7,802,835 4,548,101 1,625,375 416,883 5,026,517 671,137 — 20,090,848 99