ISBC 2017 Form 10-K & 2018 Proxy Statement

FORM 10-K Loan Portfolio Composition. The following table sets forth the composition of our loan portfolio by type of loan. Commercial loans are comprised of multi-family loans, commercial real estate loans, commercial and industrial loans and construction loans. Our primary focus over recent years has been on the origination of commercial loans. December 31, 2017 2016 2015 2014 2013 Amount % Amount % Amount % Amount % Amount % (Dollars in thousands) Commercial loans: Multi-family loans $ 7,802,835 38.84% $ 7,459,131 39.65% $ 6,255,904 37.04% $ 5,049,114 33.44% $ 3,986,208 30.51% Commercial real estate loans 4,548,101 22.64 4,452,300 23.67 3,829,099 22.67 3,147,153 20.84 2,505,327 19.18 Commercial and industrial loans 1,625,375 8.09 1,275,283 6.78 1,044,385 6.18 544,458 3.61 268,422 2.05 Construction loans 416,883 2.07 314,843 1.67 225,843 1.34 148,396 0.98 202,261 1.55 Total commercial loans 14,393,194 71.64 13,501,557 71.77 11,355,231 67.23 8,889,121 58.87 6,962,218 53.29 Residential mortgage loans 5,026,517 25.02 4,711,880 25.05 5,039,543 29.83 5,769,477 38.21 5,698,351 43.62 Consumer and other loans: Home equity loans 137,964 0.69 161,356 0.86 201,063 1.19 222,871 1.48 245,653 1.88 Home equity credit lines 251,654 1.25 240,518 1.28 220,357 1.30 200,066 1.32 150,796 1.15 Other 281,519 1.40 195,391 1.04 75,136 0.45 18,017 0.12 7,600 0.06 Total consumer and other loans 671,137 3.34 597,265 3.18 496,556 2.94 440,954 2.92 404,049 3.09 Total loans $20,090,848 100.00% $18,810,702 100.00% $16,891,330 100.00% $15,099,552 100.00% $13,064,618 100.00% Deferred fees and premiums on purchased loans, net (1) (7,778) (12,474) (11,692) (11,698) (8,146) Allowance for loan losses (230,969) (228,373) (218,505) (200,284) (173,928) Net loans $19,852,101 $18,569,855 $16,661,133 $14,887,570 $12,882,544 (1) Included in deferred fees and premiums on purchased loans are accretable purchase accounting adjustments in connection with loans acquired. Portfolio Maturities. The following table summarizes the scheduled repayments of our loan portfolio based on contractual maturity or next repricing date, including PCI loans at December 31, 2017. Overdraft loans are reported as being due in one year or less. At December 31, 2017 Multi-Family Loans Commercial Real Estate Loans Commercial and Industrial Loans Construction Loans Residential Mortgage Loans Consumer and Other Loans Total (In thousands) Amounts Due: One year or less $ 874,423 $ 543,398 $ 486,108 $325,852 $ 351,249 $154,677 $ 2,735,707 After one year: One to three years 1,567,409 776,632 195,666 91,031 371,221 193,322 3,195,281 Three to five years 2,512,638 1,674,815 248,454 — 306,824 96,702 4,839,433 Five to ten years 2,599,631 1,301,523 464,897 — 861,563 62,042 5,289,656 Ten to twenty years 248,734 251,733 200,566 — 899,752 61,971 1,662,756 Over twenty years — — 29,684 — 2,235,908 102,423 2,368,015 Total due after one year 6,928,412 4,004,703 1,139,267 91,031 4,675,268 516,460 17,355,141 Total loans $7,802,835 $4,548,101 $1,625,375 $416,883 $5,026,517 $671,137 $20,090,848 Deferred fees and premiums on purchased loans, net (7,778) Allowance for loan losses (230,969) Net loans $19,852,101 6