ISBC 2017 Form 10-K & 2018 Proxy Statement

FORM 10-K INVESTORS BANCORP, INC. AND SUBSIDIARY Notes to Consolidated Financial Statements December 31, 2016. The allowance for loan losses associated with the TDRs presented in the above tables totaled $1.8 million and $1.6 million for the periods at December 31, 2017 and 2016, respectively. Residential mortgage loan modifications generally involve the reduction in loan interest rate and extension of loan maturity dates and also may include step up interest rates in their modified terms which will impact their weighted average yield in the future. All residential loans deemed to be TDRs were modified to reflect a reduction in interest rates to current market rates. The commercial loan modifications which qualified as TDRs had their maturity extended. The following tables present information about pre and post modification interest yield for troubled debt restructurings which occurred during the years ended December 31, 2017 and 2016: Years Ended December 31, 2017 2016 Number of Loans Pre- modification Interest Yield Post- modification Interest Yield Number of Loans Pre- modification Interest Yield Post- modification Interest Yield Troubled Debt Restructurings: Multi-family 1 5.75% 5.75% — —% —% Commercial real estate 3 4.67% 4.67% 6 5.11% 5.20% Residential mortgage and consumer 27 4.36% 3.37% 27 6.18% 3.61% Payment defaults for loans modified as a TDR in the previous 12 months to December 31, 2017 consisted of 6 residential loans, 2 commercial real estate loans and 1 multi family loan with a recorded investment of $442,000, $14.4 million and $918,000, respectively, at December 31, 2017. Payment defaults for loans modified as a TDR in the previous 12 months to December 31, 2016 consisted of 11 residential mortgage loans, 4 commercial real estate loans and 1 construction loan with a recorded investment of $1.8 million, $573,000 and $132,000, respectively, at December 31, 2016. Loan Sales For the year ended December 31, 2017, the Company sold $48.1 million of non-performing commercial real estate and multi-family loans resulting in no charge-off recorded through the allowance. For the year ended December 31, 2016, the Company sold $9.7 million of performing residential loans resulting in a net gain of approximately $600,000. 5. Office Properties and Equipment, Net Office properties and equipment are summarized as follows: December 31, 2017 2016 (In thousands) Land $ 19,884 20,006 Office buildings 83,659 83,699 Leasehold improvements 112,485 95,489 Furniture, fixtures and equipment 92,650 83,246 Construction in process 6,567 13,070 315,245 295,510 Less accumulated depreciation and amortization 135,014 118,093 $180,231 177,417 107