ISBC 2017 Form 10-K & 2018 Proxy Statement

FORM 10-K Allowance for Loan Losses. The following table sets forth activity in our allowance for loan losses for the periods indicated. Years Ended December 31, 2017 2016 2015 2014 2013 (Dollars in thousands) Allowance balance (beginning of period) $ 228,373 $ 218,505 $ 200,284 $ 173,928 $ 142,172 Provision for loan losses 16,250 19,750 26,000 37,500 50,500 Charge-offs: Multi-family loans (6) (161) (284) (323) (1,266) Commercial real estate loans (8,072) (455) (1,021) (6,147) (1,101) Commercial and industrial loans (5,656) (4,485) (516) (2,447) (516) Construction loans (100) (52) (466) (640) (3,424) Residential mortgage loans (4,875) (9,425) (9,526) (7,715) (15,508) Consumer and other loans (500) (419) (403) (972) (795) Total charge-offs (19,209) (14,997) (12,216) (18,244) (22,610) Recoveries: Multi-family loans 1,677 1,885 445 3,784 219 Commercial real estate loans 549 689 807 201 65 Commercial and industrial loans 200 541 295 516 604 Construction loans — 267 317 799 315 Residential mortgage loans 2,816 1,631 2,295 1,783 2,528 Consumer and other loans 313 102 278 17 135 Total recoveries 5,555 5,115 4,437 7,100 3,866 Net charge-offs (13,654) (9,882) (7,779) (11,144) (18,744) Allowance balance (end of period) $ 230,969 $ 228,373 $ 218,505 $ 200,284 $ 173,928 Total loans outstanding $20,090,848 $18,810,702 $16,891,330 $15,099,552 $13,064,618 Average loans outstanding 19,414,842 17,479,932 15,716,010 13,776,250 11,065,190 Allowance for loan losses as a percent of total loans outstanding 1.15% 1.21% 1.29% 1.33% 1.33% Net loans charged off as a percent of average loans outstanding 0.07% 0.06% 0.05% 0.08% 0.17% Allowance for loan losses to non-performing loans (1) 157.46% 220.18% 158.43% 139.10% 124.30% (1) Non performing loans include non-accrual loans and performing TDRs. 14