ISBC 2017 Form 10-K & 2018 Proxy Statement

FORM 10-K Delinquent Loans. The following table sets forth our loan delinquencies by type and by amount at the dates indicated, excluding loans classified as PCI. Loans Delinquent For 60-89 Days 90 Days and Over Total Number Amount Number Amount Number Amount (Dollars in thousands) At December 31, 2017 Commercial loans: Multi-family loans 2 $ 7,652 1 $ 203 3 $ 7,855 Commercial real estate loans 2 778 16 11,519 18 12,297 Commercial and industrial loans — — 2 75 2 75 Construction loans 1 295 — — 1 295 Total commercial loans 5 8,725 19 11,797 24 20,522 Residential mortgage loans 42 8,739 260 54,900 302 63,639 Consumer and other loans 14 521 83 5,755 97 6,276 Total 61 $17,985 362 $72,452 423 $ 90,437 At December 31, 2016 Commercial loans: Multi-family loans 1 $ 1,099 1 $ 234 2 $ 1,333 Commercial real estate loans 8 31,964 14 6,445 22 38,409 Commercial and industrial loans 4 885 6 2,971 10 3,856 Construction loans — — — — — — Total commercial loans 13 33,948 21 9,650 34 43,598 Residential mortgage loans 52 10,930 286 58,119 338 69,049 Consumer and other loans 10 719 115 7,065 125 7,784 Total 75 $45,597 422 $74,834 497 $120,431 Non-Performing Assets. Non-performing assets include loans delinquent 90 days or more, non-accrual loans, performing troubled debt restructurings and real estate owned (“REO”), and excludes PCI loans. Loans are classified as non-accrual when they are delinquent 90 days or more or if management has specific information that it is probable they will not collect all amounts due under the contractual terms of the loan agreement. We did not have any loans delinquent 90 days or more and still accruing interest at December 31, 2017 and 2016. Non-accrual loans increased by $41.4 million to $135.7 million at December 31, 2017 from $94.3 million at December 31, 2016. Included in the increase were $13.9 million of multi family loans, $5.6 million of commercial real estate loans and $6.4 million of commercial and industrial loans that were classified as non-accrual which were performing in accordance with their contractual terms. For the year ended December 31, 2017, the Company sold $48.1 million of non-performing commercial real estate and multi-family loans from one relationship, resulting in no charge-off recorded through the allowance. There were no sales of non-performing loans during 2016. 11