The following table presents the loan categories for the period ended as indicated:

As a result of the Merger, the Company recorded $4.53 billion of loans held for investment on the Merger Date.

As of March 31, 2021, included in C&I loans was $1.43 billion of Small Business Administration ("SBA") Paycheck Protection Program ("PPP") loans. There was $321.9 million of SBA PPP loans at December 31, 2020. These loans carry a 100% guarantee from the SBA and have no allowance for credit losses allocated to them based on the nature of the guarantee.

The following tables present data regarding the allowance for credit losses activity for the periods indicated:

The increase in allowance for credit losses was primarily attributable to the Day 1 allowance recognized on acquired PCD loans of $52.3 million, coupled with the provision for credit losses on loans recognized of $12.6 million for the quarter, partially offset by $4.3 million in net charge-offs and the impact of the adoption of the CECL standard of $3.9 million. The provision of $12.6 million for the quarter primarily resulted from the provision for credit losses recorded on acquired non-PCD loans which totaled $20.3 million for the quarter, partially offset by a negative $7.6 million provision on the remainder of the portfolio as a result of the improvement in forecasted macroeconomic conditions.

The following table presents the amortized cost basis of loans on non-accrual status as of the period indicated:

The Company did not recognize interest income on non-accrual loans during the quarter ended March 31, 2021.

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method, prior to the adoption of ASC 326, as of the dates indicated:

A loan is considered impaired when, based on then current information and events, it is probable that all contractual amounts due will not be collected in accordance with the terms of the loan. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays or shortfalls generally are not classified as impaired. Management determines the significance of payment delays and shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed.

The Bank considers TDRs and all non-accrual loans, except non-accrual one-to-four family loans in less than the FNMA Limits, to be impaired. Non-accrual one-to-four family loans equal to or less than the FNMA Limits, as well as all consumer loans, are considered homogeneous loan pools and are not required to be evaluated individually for impairment unless considered a TDR.

Impairment is typically measured using the difference between the outstanding loan principal balance and either: 1) the likely realizable value of a note sale; 2) the fair value of the underlying collateral, net of likely disposal costs, if repayment is expected to come from liquidation of the collateral; or 3) the present value of estimated future cash flows (using the loan’s pre-modification rate for certain performing TDRs). If a TDR is substantially performing in accordance with its restructured terms, management will look to either the potential net liquidation proceeds of the underlying collateral or the present value of the expected cash flows from the debt service in measuring impairment (whichever is deemed most appropriate under the circumstances). If a TDR has re-defaulted, generally the likely realizable net proceeds from either a note sale or the liquidation of the collateral is considered when measuring impairment. Measured impairment is either charged off immediately or, in limited instances, recognized as an allocated reserve within the allowance for loan losses.

The following tables summarize impaired loans with no related allowance recorded and with related allowance recorded as of the periods indicated (by collateral type within the real estate loan segment):

The following table summarizes impaired loans recorded as of the date indicated:

(1)	The recorded investment excludes net deferred costs due to immateriality.

The following table presents information for impaired loans for the period indicated:


	Three Months Ended
	March 31, 2020
	Average		Interest
	Recorded		Income
(In thousands)	Investment⁽¹⁾		Recognized⁽²⁾
With no related allowance recorded:
One-to-four family residential and cooperative/condominium apartment	$	2,948	$	—
Multifamily residential and residential mixed-use		743		6
CRE		58		1
Total with no related allowance recorded		3,749		7

With an allowance recorded:
C&I		10,082		—
Total	$	13,831	$	7

(1)	The recorded investment excludes net deferred costs due to immateriality.

(2)	Cash basis interest and interest income recognized on accrual basis approximate each other.

The following tables summarize the past due status of the Company’s investment in loans (excluding net deferred costs and accrued interest) as of the dates indicated:


	March 31, 2021
					Loans 90
					Days or
	30 to 59		60 to 89		More Past Due
	Days		Days		and Still		Non-		Total				Total
(In thousands)	Past Due		Past Due		Accruing Interest		accrual ⁽¹⁾		Past Due		Current		Loans
Real estate:
One-to-four family residential, including condominium and cooperative apartment	$	7,027	$	686	$	45	$	5,384	$	13,142	$	683,273	$	696,415
Multifamily residential and residential mixed-use		3,984		8,340		2,871		4,844		20,039		3,547,168		3,567,207
CRE		4,702		3,334		2,259		10,595		20,890		3,610,397		3,631,287
ADC		—		—		—		104		104		254,066		254,170
Total real estate		15,713		12,360		5,175		20,927		54,175		8,094,904		8,149,079
C&I		13,254		410		3,652		14,523		31,839		2,300,771		2,332,610
Other		9		89		—		99		197		24,212		24,409
Total	$	28,976	$	12,859	$	8,827	$	35,549	$	86,211	$	10,419,887	$	10,506,098

(1)	Includes all loans on non-accrual status regardless of the number of days such loans were delinquent as of March 31, 2021.


	December 31, 2020
					Loans 90
					Days or
	30 to 59		60 to 89		More Past Due
	Days		Days		and Still		Non-		Total				Total
(In thousands)	Past Due		Past Due		Accruing Interest		accrual ⁽¹⁾		Past Due		Current		Loans
Real estate:
One-to-four family residential, including condominium and cooperative apartment	$	—	$	—	$	44	$	858	$	902	$	184,087	$	184,989
Multifamily residential and residential mixed-use		—		—		437		1,863		2,300		2,756,443		2,758,743
CRE		15,351		—		—		2,704		18,055		1,860,112		1,878,167
ADC		—		—		—		—		—		156,296		156,296
Total real estate		15,351		—		481		5,425		21,257		4,956,938		4,978,195
C&I		—		917		2,848		12,502		16,267		625,266		641,533
Other		8		1		—		1		10		2,306		2,316
Total	$	15,359	$	918	$	3,329	$	17,928	$	37,534	$	5,584,510	$	5,622,044

(1)	Includes all loans on non-accrual status regardless of the number of days such loans were delinquent as of December 31, 2020.

Accruing Loans 90 Days or More Past Due:

The Company continued accruing interest on eight loans with an outstanding balance of $8.8 million at March 31, 2021, and three loans with an outstanding balance of $3.3 million at December 31, 2020, all of which were 90 days or more past due on their respective contractual maturity dates. These loans continued to make monthly payments consistent with their initial contractual amortization schedule exclusive of the balloon payments due at maturity. These loans were well secured and/or were expected to be refinanced, and, therefore, remained on accrual status and were deemed performing assets at the dates indicated above.

Collateral Dependent Loans:

At March 31, 2021, the Company had collateral dependent loans which were individually evaluated to determine expected credit losses.

Collateral dependent CRE loans totaled $66.0 million and had a related allowance for credit losses totaling $17.4 million at March 31, 2021. The loans were secured by real estate.

Collateral dependent multi-family residential and residential mixed-use loans totaled $12.5 million and had a related allowance for credit losses totaling $2.6 million. The loans were secured by real estate.

Collateral dependent C&I loans totaled $8.0 million and had a related allowance for credit losses totaling $4.1 million. The loans were secured by business assets.

Loan payment deferrals due to COVID-19

Consistent with regulatory guidance to work with borrowers during the unprecedented situation caused by the COVID-19 pandemic and as outlined in the CARES Act, the Company established a formal payment deferral program in April 2020 for borrowers that have been adversely affected by the pandemic.

As of March 31, 2021, the Company had 34 loans, representing outstanding loan balances of $66.7 million, that were deferring both principal and interest (“P&I” deferrals).

The table below presents the P&I deferrals as of March 31, 2021:


	March 31, 2021
	Number
	of Loans	Balance⁽¹⁾		% of Portfolio
(Dollars in thousands)
One-to-four family residential and cooperative/condominium apartment	15	$	15,489	2.2	%
Multifamily residential and residential mixed-use	—		—	—
CRE	8		24,174	0.7
ADC	1		13,500	5.3
C&I	10		13,491	0.6
Total	34	$	66,654	0.6

(1)	Amount excludes net deferred costs due to immateriality.

Pursuant to regulatory guidance, and guidance under Section 4013 of the CARES Act, a qualified loan modification, such as a payment deferral, is exempt by law from classification as a TDR as defined by GAAP, was expected to expire on December 31, 2020. The 2021 Consolidated Appropriations Act, which was signed into law December of 2020, extended the exemption for TDR classification until the earlier of January 1, 2022 or the date that is 60 days after the date on which the national emergency concerning the COVID-19 outbreak is lifted.

Risk-ratings on COVID-19 loan deferrals are evaluated on an ongoing basis.

Credit Quality Indicators

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit structure, loan documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying them as to credit risk. This analysis includes all loans, such as multifamily residential, mixed-use residential (i.e., loans in which the aggregate rental income of the underlying collateral property is generated from both residential and commercial units, but 50% or more of such income is generated from the residential units), commercial real estate, mixed-use commercial real estate (i.e., loans in which the aggregate rental income of the underlying collateral property is generated from both residential and commercial units, but over 50% of such income is generated from the commercial units), ADC, C&I, as well as all one-to- four family residential and cooperative and condominium apartment loans. The Company uses the following definitions for risk ratings:

Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Bank’s credit position at some future date.

Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected.

Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of then existing facts, conditions, and values, highly questionable and improbable. All real estate and C&I loans not classified as Special Mention, Substandard, or Doubtful were deemed pass loans at both March 31, 2021 and December 31, 2020.

The following is a summary of the credit risk profile of loans by internally assigned grade as of the periods indicated, the years represent the year of origination for non-revolving loans:


	March 31, 2021
(In thousands)	2021		2020		2019		2018		2017		2016 and Prior		Revolving		Revolving-Term		Total
One-to-four family residential, and condominium/cooperative apartment:
Pass	$	30,658	$	102,503	$	95,992	$	105,587	$	101,101	$	177,780	$	54,179	$	13,426	$	681,226
Special mention		—		—		381		152		371		5,106		846		1,106		7,962
Substandard		—		—		745		46		—		5,157		—		1,279		7,227
Doubtful		—		—		—		—		—		—		—		—		—
Total one-to-four family residential, and condominium/cooperative apartment		30,658		102,503		97,118		105,785		101,472		188,043		55,025		15,811		696,415

Multifamily residential and residential mixed-use:
Pass		95,876		365,073		518,902		215,459		464,424		1,672,655		9,698		11		3,342,098
Special mention		—		—		1,005		—		17,169		17,057		—		—		35,231
Substandard		—		—		34,421		27,280		32,564		95,117		496		—		189,878
Doubtful		—		—		—		—		—		—		—		—		—
Total multifamily residential and residential mixed-use		95,876		365,073		554,328		242,739		514,157		1,784,829		10,194		11		3,567,207

CRE:
Pass		184,029		867,480		604,893		396,946		404,571		978,940		50,050		26,440		3,513,349
Special mention		—		4,256		2,673		9,031		13,536		11,578		—		—		41,074
Substandard		—		589		3,400		13,235		22,060		37,567		—		10		76,861
Doubtful		—		—		—		—		—		—		—		3		3
Total CRE		184,029		872,325		610,966		419,212		440,167		1,028,085		50,050		26,453		3,631,287

ADC:
Pass		8,105		39,106		23,599		10,520		5,615		1,355		121,537		29,651		239,488
Special mention		—		—		—		1,077		—		—		—		13,500		14,577
Substandard		—		—		—		—		—		105		—		—		105
Doubtful		—		—		—		—		—		—		—		—		—
Total ADC		8,105		39,106		23,599		11,597		5,615		1,460		121,537		43,151		254,170

C&I:
Pass		560,948		991,821		71,898		44,089		47,108		38,787		461,029		42,082		2,257,762
Special mention		—		2,345		1,270		5,553		765		559		22,566		3,078		36,136
Substandard		—		49		839		1,417		3,228		1,314		4,118		15,190		26,155
Doubtful		—		—		210		—		11,929		190		—		228		12,557
Total C&I		560,948		994,215		74,217		51,059		63,030		40,850		487,713		60,578		2,332,610

Total Loans	$	879,616	$	2,373,222	$	1,360,228	$	830,392	$	1,124,441	$	3,043,267	$	724,519	$	146,004	$	10,481,689


	December 31, 2020
			Special
(In thousands)	Pass		Mention		Substandard		Doubtful		Total
Real Estate:
One-to-four family residential and condominium/cooperative apartment	$	183,293	$	—	$	1,696	$	—	$	184,989
Multifamily residential and residential mixed-use		2,523,258		56,400		179,085		—		2,758,743
CRE		1,831,712		13,861		32,594		—		1,878,167
ADC		142,796		13,500		—		—		156,296
Total real estate		4,681,059		83,761		213,375		—		4,978,195
C&I		613,691		2,131		13,315		12,396		641,533
Total Real Estate and C&I	$	5,294,750	$	85,892	$	226,690	$	12,396	$	5,619,728

For other loans, the Company evaluates credit quality based on payment activity. Other loans that are 90 days or more past due are placed on non-accrual status, while all remaining other loans are classified and evaluated as performing. The following is a summary of the credit risk profile of other loans by internally assigned grade:


(In thousands)	March 31, 2021		December 31, 2020
Performing	$	24,310	$	2,315
Non-accrual		99		1
Total	$	24,409	$	2,316