
	March 31, 2019		December 31, 2018
Mortgage loans:
Residential	$	1,087,184	1,099,464
Commercial	2,288,342		2,299,313
Multi-family	1,357,038		1,339,677
Construction	374,900		388,999
Total mortgage loans	5,107,464		5,127,453
Commercial loans	1,698,146		1,695,021
Consumer loans	421,370		431,428
Total gross loans	7,226,980		7,253,902
Purchased credit-impaired ("PCI") loans	877		899
Premiums on purchased loans	3,106		3,243
Unearned discounts	(33)		(33)
Net deferred fees	(7,086)		(7,423)
Total loans	$	7,223,844	7,250,588


	March 31, 2019
	30-59 Days		60-89 Days	Non-accrual	Recorded Investment > 90 days accruing	Total Past Due	Current	Total Loans Receivable
Mortgage loans:
Residential	$	6,132	3,541	6,809	—	16,482	1,070,702	1,087,184
Commercial	1,293		325	1,516	—	3,134	2,285,208	2,288,342
Multi-family	—		—	—	—	—	1,357,038	1,357,038
Construction	—		—	—	—	—	374,900	374,900
Total mortgage loans	7,425		3,866	8,325	—	19,616	5,087,848	5,107,464
Commercial loans	20,350		9	14,785	—	35,144	1,663,002	1,698,146
Consumer loans	1,458		88	1,687	—	3,233	418,137	421,370
Total gross loans	$	29,233	3,963	24,797	—	57,993	7,168,987	7,226,980


	December 31, 2018
	30-59 Days		60-89 Days	Non-accrual	Recorded Investment > 90 days accruing	Total Past Due	Current	Total Loans Receivable
Mortgage loans:
Residential	$	4,188	5,557	5,853	—	15,598	1,083,866	1,099,464
Commercial	—		—	3,180	—	3,180	2,296,133	2,299,313
Multi-family	—		—	—	—	—	1,339,677	1,339,677
Construction	—		—	—	—	—	388,999	388,999
Total mortgage loans	4,188		5,557	9,033	—	18,778	5,108,675	5,127,453
Commercial loans	425		13,565	15,391	—	29,381	1,665,640	1,695,021
Consumer loans	1,238		610	1,266	—	3,114	428,314	431,428
Total gross loans	$	5,851	19,732	25,690	—	51,273	7,202,629	7,253,902

Included in loans receivable are loans for which the accrual of interest income has been discontinued due to deterioration in the financial condition of the borrowers. The principal amounts of these non-accrual loans were $24.8 million and $25.7 million at March 31, 2019 and December 31, 2018, respectively. Included in non-accrual loans were $10.6 million and $11.1 million of

The Company defines an impaired loan as a non-homogeneous loan greater than $1.0 million for which it is probable, based on current information, all amounts due under the contractual terms of the loan agreement will not be collected. Impaired loans also include all loans modified as troubled debt restructurings (“TDRs”). A loan is deemed to be a TDR when a loan modification resulting in a concession is made in an effort to mitigate potential loss arising from a borrower’s financial difficulty. Smaller balance homogeneous loans, including residential mortgages and other consumer loans, are evaluated collectively for impairment and are excluded from the definition of impaired loans, unless modified as TDRs. The Company separately calculates the reserve for loan losses on impaired loans. The Company may recognize impairment of a loan based upon: (1) the present value of expected cash flows discounted at the effective interest rate; (2) if a loan is collateral dependent, the fair value of collateral; or (3) the fair value of the loan. Additionally, if impaired loans have risk characteristics in common, those loans may be aggregated and historical statistics may be used as a means of measuring those impaired loans.

The Company uses third-party appraisals to determine the fair value of the underlying collateral in its analysis of collateral dependent impaired loans. A third-party appraisal is generally ordered as soon as a loan is designated as a collateral dependent impaired loan and is generally updated annually or more frequently, if required.

A specific allocation of the allowance for loan losses is established for each collateral dependent impaired loan with a carrying balance greater than the collateral’s fair value, less estimated costs to sell. Charge-offs are generally taken for the amount of the specific allocation when operations associated with the respective property cease and it is determined that collection of amounts due will be derived primarily from the disposition of the collateral. At each quarter end, if a loan is designated as a collateral dependent impaired loan and the third-party appraisal has not yet been received, an evaluation of all available collateral is made using the best information available at the time, including rent rolls, borrower financial statements and tax returns, prior appraisals, management’s knowledge of the market and collateral, and internally prepared collateral valuations based upon market assumptions regarding vacancy and capitalization rates, each as and where applicable. Once the appraisal is received and reviewed, the specific reserves are adjusted to reflect the appraised value. The Company believes there have been no significant time lapses in the recognition of changes in collateral values as a result of this process.

At March 31, 2019, there were 155 impaired loans totaling $63.4 million. Included in this total were 133 TDRs related to 127 borrowers totaling $50.3 million that were performing in accordance with their restructured terms and which continued to accrue interest at March 31, 2019. At December 31, 2018, there were 152 impaired loans totaling $50.7 million. Included in this total were 129 TDRs to 124 borrowers totaling $35.6 million that were performing in accordance with their restructured terms and which continued to accrue interest at December 31, 2018.

Loan modifications to borrowers experiencing financial difficulties that are considered TDRs primarily involve lowering the monthly payments on such loans through either a reduction in interest rate below a market rate, an extension of the term of the loan without a corresponding adjustment to the risk premium reflected in the interest rate, or a combination of these two methods. These modifications generally do not result in the forgiveness of principal or accrued interest. In addition, the Company attempts to obtain additional collateral or guarantor support when modifying such loans. If the borrower has demonstrated performance under the previous terms and our underwriting process shows the borrower has the capacity to continue to perform under the restructured terms, the loan will continue to accrue interest. Non-accruing restructured loans may be returned to accrual status when there has been a sustained period of repayment performance (generally six consecutive months of payments) and both principal and interest are deemed collectible.


	For the three months ended
	March 31, 2019							March 31, 2018
Troubled Debt Restructurings	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Loans	Pre-Modification Outstanding Recorded Investment	Post-Modification Outstanding Recorded Investment
	($ in thousands)
Mortgage loans:

Commercial	1	$	14,010	$	14,010	—	—	—

Total mortgage loans	1	14,010		14,010		—	—	—
Commercial loans	4	2,013		2,013		5	8,127	$	6,626

Total restructured loans	5	$	16,023	$	16,023	5	8,127	$	6,626

All TDRs are impaired loans, which are individually evaluated for impairment, as previously discussed. During the three months ended March 31, 2019, there were no charge-offs recorded on collateral dependent impaired loans. For the three months ended March 31, 2019, the allowance for loan losses associated with the TDRs presented in the preceding tables totaled $164,000, and was included in the allowance for loan losses for loans individually evaluated for impairment.

There were three loans to one borrower which had a payment default (90 days or more past due) for loans modified as TDRs within the 12 month period ending March 31, 2019. There were also three payment defaults (90 days or more past due) for loans modified as TDRs within the 12 month period ending March 31, 2018. TDRs that subsequently default are considered collateral dependent impaired loans and are evaluated for impairment based on the estimated fair value of the underlying collateral less expected selling costs.

PCI loans are loans acquired at a discount primarily due to deteriorated credit quality. These loans are accounted for at fair value, based upon the present value of expected future cash flows, with no related allowance for loan losses. PCI loans totaled $877,000 at March 31, 2019 and $899,000 at December 31, 2018. The decrease from December 31, 2018 was largely due to the full repayment and greater than projected cash flows on certain PCI loans.


Three months ended March 31,	Mortgage loans		Commercial loans	Consumer loans	Total
2019
Balance at beginning of period	$	27,678	25,693	2,191	55,562
Provision (credited) charged to operations	(982)		1,282	(100)	200
Recoveries of loans previously charged-off	230		52	130	412
Loans charged-off	—		(676)	(145)	(821)
Balance at end of period	$	26,926	26,351	2,076	55,353

2018
Balance at beginning of period	$	28,052	29,814	2,329	60,195
Provision (credited) charged to operations	(22)		5,390	32	5,400
Recoveries of loans previously charged-off	88		127	180	395
Loans charged-off	(117)		(3,005)	(347)	(3,469)
Balance at end of period	$	28,001	32,326	2,194	62,521


	March 31, 2019										December 31, 2018
	Unpaid Principal Balance		Recorded Investment	Related Allowance	Average Recorded Investment	Interest Income Recognized	Unpaid Principal Balance	Recorded Investment	Related Allowance	Average Recorded Investment	Interest Income Recognized
Loans with no related allowance
Mortgage loans:
Residential	$	16,094	13,010	—	13,055	170	15,013	12,005	—	12,141	594
Commercial	14,010		14,010	—	14,010	—	1,550	1,546	—	1,546	—


Total	30,104		27,020	—	27,065	170	16,563	13,551	—	13,687	594
Commercial loans	12,690		9,054	—	9,330	115	21,746	16,254	—	17,083	328
Consumer loans	1,840		1,281	—	1,297	20	1,871	1,313	—	1,386	90
Total impaired loans	$	44,634	37,355	—	37,692	305	40,180	31,118	—	32,156	1,012

Loans with an allowance recorded
Mortgage loans:
Residential	$	9,018	8,598	828	8,621	89	10,573	10,090	954	10,186	425
Commercial	1,033		1,033	69	1,037	13	1,039	1,039	72	1,052	53


Total	10,051		9,631	897	9,658	102	11,612	11,129	1,026	11,238	478
Commercial loans	17,539		15,490	806	16,550	255	7,493	7,493	92	9,512	435
Consumer loans	943		932	46	938	13	954	944	47	962	40
Total impaired loans	$	28,533	26,053	1,749	27,146	370	20,059	19,566	1,165	21,712	953

Total impaired loans
Mortgage loans:
Residential	$	25,112	21,608	828	21,676	259	25,586	22,095	954	22,327	1,019
Commercial	15,043		15,043	69	15,047	13	2,589	2,585	72	2,598	53


Total	40,155		36,651	897	36,723	272	28,175	24,680	1,026	24,925	1,072
Commercial loans	30,229		24,544	806	25,880	370	29,239	23,747	92	26,595	763
Consumer loans	2,783		2,213	46	2,235	33	2,825	2,257	47	2,348	130
Total impaired loans	$	73,167	63,408	1,749	64,838	675	60,239	50,684	1,165	53,868	1,965

Specific allocations of the allowance for loan losses attributable to impaired loans totaled $1.7 million at March 31, 2019 and $1.2 million at December 31, 2018. At March 31, 2019 and December 31, 2018, impaired loans for which there was no related allowance for loan losses totaled $37.4 million and $31.1 million, respectively. The average balance of impaired loans for the three months ended March 31, 2019 and December 31, 2018 was $64.8 million and $53.9 million, respectively.

The Company utilizes an internal nine-point risk rating system to summarize its loan portfolio into categories with similar risk characteristics. Loans deemed to be “acceptable quality” are rated 1 through 4, with a rating of 1 established for loans with minimal risk. Loans that are deemed to be of “questionable quality” are rated 5 (watch) or 6 (special mention). Loans with adverse classifications (substandard, doubtful or loss) are rated 7, 8 or 9, respectively. Commercial mortgage, commercial, multi-family and construction loans are rated individually, and each lending officer is responsible for risk rating loans in their portfolio. These risk ratings are then reviewed by the department manager and/or the Chief Lending Officer and by the Credit Department. The risk ratings are also confirmed through periodic loan review examinations, which are currently performed by an independent third-party. Reports by the independent third-party are presented directly to the Audit Committee of the Board of Directors.


	At March 31, 2019
	Residential		Commercialmortgage	Multi-family	Construction	Total mortgages	Commercial	Consumer	Total loans
Special mention	$	3,059	25,518	—	—	28,577	54,481	88	83,146
Substandard	8,651		15,571	—	6,181	30,403	68,136	2,078	100,617
Doubtful	—		—	—	—	—	202	—	202
Loss	—		—	—	—	—	—	—	—
Total classified and criticized	11,710		41,089	—	6,181	58,980	122,819	2,166	183,965
Pass/Watch	1,075,474		2,247,253	1,357,038	368,719	5,048,484	1,575,327	419,204	7,043,015
Total	$	1,087,184	2,288,342	1,357,038	374,900	5,107,464	1,698,146	421,370	7,226,980


	At December 31, 2018
	Residential		Commercialmortgage	Multi-family	Construction	Total mortgages	Commercial	Consumer	Total loans
Special mention	$	5,071	14,496	228	—	19,795	67,396	610	87,801
Substandard	7,878		13,292	—	6,181	27,351	45,180	1,711	74,242
Doubtful	—		—	—	—	—	923	—	923
Loss	—		—	—	—	—	—	—	—
Total classified and criticized	12,949		27,788	228	6,181	47,146	113,499	2,321	162,966
Pass/Watch	1,086,515		2,271,525	1,339,449	382,818	5,080,307	1,581,522	429,107	7,090,936
Total	$	1,099,464	2,299,313	1,339,677	388,999	5,127,453	1,695,021	431,428	7,253,902