ISBC 2017 Form 10-K & 2018 Proxy Statement

FORM 10-K Net Loans. Net loans increased by $1.28 billion, or 6.9%, to $19.85 billion at December 31, 2017 from $18.57 billion at December 31, 2016. The detail of the loan portfolio (including PCI loans) is below: December 31, 2017 December 31, 2016 (Dollars in thousands) Commercial Loans: Multi-family loans $ 7,802,835 7,459,131 Commercial real estate loans 4,548,101 4,452,300 Commercial and industrial loans 1,625,375 1,275,283 Construction loans 416,883 314,843 Total commercial loans 14,393,194 13,501,557 Residential mortgage loans 5,026,517 4,711,880 Consumer and other 671,137 597,265 Total Loans 20,090,848 18,810,702 Deferred fees and premiums on purchased loans, net (7,778) (12,474) Allowance for loan losses (230,969) (228,373) Net loans $19,852,101 $18,569,855 During the year ended December 31, 2017, we originated or funded $1.16 billion in multi-family loans, $705.1 million in commercial real estate loans, $663.4 million in commercial and industrial loans, $516.5 million in residential loans, $414.2 million in construction loans and $133.0 million in consumer and other loans. This increase in net loans reflects our continued focus on generating multi-family loans, commercial real estate loans and commercial and industrial loans, which was partially offset by pay downs and payoffs of loans. A significant portion of our commercial loan portfolio, including commercial and industrial loans, are secured by commercial real estate and are primarily on properties and businesses located in New Jersey and New York. In addition to the loans originated for our portfolio, our mortgage subsidiary, Investors Home Mortgage Co., originated residential mortgage loans for sale to third parties totaling $140.2 million for the year ended December 31, 2017. We also purchased mortgage loans from correspondent entities including other banks and mortgage bankers. During the year ended December 31, 2017, we purchased loans totaling $442.2 million from these entities. The following table sets forth non-accrual loans (excluding PCI loans and loans held-for-sale) on the dates indicated as well as certain asset quality ratios: December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017 December 31, 2016 # of Loans Amount # of Loans Amount # of Loans Amount # of Loans Amount # of Loans Amount (Dollars in millions) Multi-family 5 $ 15.0 4 $ 14.2 6 $ 19.0 2 $ 0.5 2 $ 0.5 Commercial real estate 37 34.0 31 35.3 36 75.6 24 8.2 24 9.2 Commercial and industrial 11 10.0 6 1.9 5 1.8 4 2.2 8 4.7 Construction 1 0.3 — — — — — — — — Total commercial loans 54 59.3 41 51.4 47 96.4 30 10.9 34 14.4 Residential and consumer 427 76.4 417 74.3 447 81.0 470 76.2 478 79.9 Total non-accrual loans 481 $ 135.7 458 $ 125.7 494 $ 177.4 500 $ 87.1 512 $ 94.3 Accruing troubled debt restructured loans 49 $ 11.0 58 $ 13.4 45 $ 11.7 47 $ 12.2 42 $ 9.4 Non-accrual loans to total loans 0.68% 0.63% 0.89% 0.45% 0.50% Allowance for loan losses as a percent of non-accrual loans 170.17% 183.09% 129.68% 265.16% 242.24% Allowance for loan losses as a percent of total loans 1.15% 1.15% 1.16% 1.18% 1.21% 58