ISBC 2017 Form 10-K & 2018 Proxy Statement

FORM 10-K INVESTORS BANCORP, INC. AND SUBSIDIARY Notes to Consolidated Financial Statements The following table presents non-accrual loans, excluding PCI loans, at the dates indicated: December 31, 2017 December 31, 2016 # of loans amount # of loans amount (Dollars in thousands) Non-accrual: Multi-family 5 $ 14,978 2 $ 482 Commercial real estate 37 34,043 24 9,205 Commercial and industrial 11 9,989 8 4,659 Construction 1 295 — — Total commercial loans 54 59,305 34 14,346 Residential mortgage and consumer 427 76,422 478 79,928 Total non-accrual loans 481 $135,727 512 $94,274 Included in the non-accrual table above are TDR loans whose payment status is current but the Company has classified as non-accrual as the loans have not maintained their current payment status for six consecutive months under the restructured terms and therefore do not meet the criteria for accrual status. As of December 31, 2017 and December 31, 2016, these loans are comprised of the following: December 31, 2017 December 31, 2016 # of loans Amount # of loans Amount (Dollars in thousands) Current TDR classified as non-accrual: Multi-family — $ — 1 $ 248 Commercial real estate 1 10 1 63 Commercial and industrial — — 1 286 Total commercial loans 1 10 3 597 Residential mortgage and consumer 24 4,103 23 5,721 Total current TDR classified as non-accrual 25 $4,113 26 $6,318 The following table presents TDR loans which were also 30-89 days delinquent and classified as non- accrual at the dates indicated: December 31, 2017 December 31, 2016 # of loans Amount # of loans Amount (Dollars in thousands) TDR 30-89 days delinquent classified as non-accrual: Multi-family 1 $ 918 — $ — Commercial real estate 2 14,321 2 169 Total commercial loans 3 15,239 2 169 Residential mortgage and consumer 13 1,995 14 2,869 Total TDR 30-89 days delinquent classified as non-accrual 16 $17,234 16 $3,038 The Company has no loans past due 90 days or more delinquent that are still accruing interest. PCI loans are excluded from non-accrual loans, as they are recorded at fair value based on the present value of expected future cash flows. As of December 31, 2017, PCI loans with a carrying value of $8.3 million 103