Loans

Loans are reported at their outstanding principal balance net of any unearned income, charge-offs, deferred loan fees and costs on originated loans and unamortized premiums or discounts on purchased loans. Loan fees and certain loan origination costs are deferred. Net loan origination costs and premiums or discounts on loans purchased are amortized into interest income over the contractual life of the loans using the level-yield method. Prepayment penalties received on loans which pay in full prior to their scheduled maturity are included in interest income in the period they are collected.

Interest on loans is recognized on the accrual basis. The accrual of income on loans is generally discontinued when certain factors, such as contractual delinquency of

days or more, indicate reasonable doubt as to the timely collectability of such income. Uncollected interest previously recognized on non-accrual loans is reversed from interest income at the time the loan is placed on non-accrual status. A non-accrual loan can be returned to accrual status when contractual delinquency returns to less than

days delinquent. Payments received on non-accrual loans that do

not

bring the loan to less than

days delinquent are recorded on a cash basis. Payments can also be applied

first

as a reduction of principal until all principal is recovered and then subsequently to interest, if in management’s opinion, it is evident that recovery of all principal due is likely to occur.

The Company recognizes a loan as non-performing when the borrower has demonstrated the inability to bring the loan current, or due to other circumstances which, in management’s opinion, indicate the borrower will be unable to bring the loan current within a reasonable time. All loans classified as non-performing, which includes all loans past due

days or more, are classified as non-accrual unless there is, in our opinion, compelling evidence the borrower will bring the loan current in the immediate future. Prior to a loan becoming

days delinquent, an updated appraisal is ordered and/or an internal evaluation is prepared.

A loan is considered impaired when, based upon current information, the Company believes it is probable that it will be unable to collect all amounts due, both principal and interest, in accordance with the original terms of the loan. Impaired loans are measured based on the present value of the expected future cash flows discounted at the loan’s effective interest rate or at the loan’s observable market price or, as a practical expedient, the fair value of the collateral if the loan is collateral dependent. All non-accrual loans are considered impaired.

The Company maintains an allowance for loan losses at an amount, which, in management’s judgment, is adequate to absorb probable estimated losses inherent in the loan portfolio. Management’s judgment in determining the adequacy of the allowance is based on evaluations of the collectability of loans. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revisions as more information becomes available. An unallocated component

may

at times be maintained to cover uncertainties that could affect management's estimate of probable losses. When necessary an unallocated component of the allowance will reflect the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. The allowance is established through charges to earnings in the form of a provision for loan losses based on management’s evaluation of the risk inherent in the various components of the loan portfolio and other factors, including historical loan loss experience (which is updated quarterly), current economic conditions, delinquency and non-accrual trends, classified loan levels, risk in the portfolio and volumes and trends in loan types, recent trends in charge-offs, changes in underwriting standards, experience, ability and depth of the Company’s lenders, collection policies and experience, internal loan review function and other external factors. Increases and decreases in the allowance other than charge-offs and recoveries are included in the provision for loan losses. When a loan or a portion of a loan is determined to be uncollectible, the portion deemed uncollectible is charged against the allowance, and subsequent recoveries, if any, are credited to the allowance.

The determination of the amount of the allowance for loan losses includes estimates that are susceptible to significant changes due to changes in appraisal values of collateral, national and local economic conditions and other factors. We review our loan portfolio by separate categories with similar risk and collateral characteristics. Impaired loans are segregated and reviewed separately.

The Company reviews each impaired loan on an individual basis to determine if either a charge-off or a valuation allowance needs to be allocated to the loan. The Company does

not

charge-off or allocate a valuation allowance to loans for which management has concluded the current value of the underlying collateral will allow for recovery of the loan balance either through the sale of the loan or by foreclosure and sale of the property.

The loan balances of collateral dependent impaired loans are compared to the property’s updated fair value. The Company considers fair value of collateral dependent loans to be

85%

of the appraised or internally estimated value of the property. The balance which exceeds fair value is generally charged-off, except for taxi medallion loans. The

85%

is based on the actual net proceeds the Bank has received from the sale of other real estate owned (“OREO”) as a percentage of OREO’s appraised value. Taxi medallion loans with a loan-to-value greater than

100%

are allocated a portion of the allowance for loan losses in the amount of the excess of the loan-to-value over the loan’s principal balance. The fair value of the underlying collateral of taxi medallion loans is the value of the underlying medallion based upon the most recently reported arm’s length transaction. When there is

recent sale activity, the fair value is calculated using capitalization rates. All taxi medallion loans are classified as impaired and allocated a portion of the allowance in the amount of the excess of the loan-to-value over the loan’s principal balance.

The Company segregated its loans into

two

portfolios based on year of origination. One portfolio was reviewed for loans originated after

December 31, 2009

and a

second

portfolio for loans originated prior to

January 1, 2010.

Our decision to segregate the portfolio based upon origination dates was based on changes made in our underwriting standards during

2009.

By the end of

2009,

all loans were being underwritten based on revised and tightened underwriting standards. Loans originated prior to

2010

have a higher delinquency rate and loss history. Each of the years in the portfolio for loans originated prior to

2010

has a similar delinquency rate. The Company’s Board of Directors reviews and approves management’s evaluation of the adequacy of the allowance for loan losses on a quarterly basis.

The Company evaluates the underlying collateral through a

third

party appraisal, or when a

third

party appraisal is

not

available, the Company will use an internal evaluation. The internal evaluations are prepared using an income approach or a sales approach. The income approach is used for income producing properties and uses current revenues less operating expenses to determine the net cash flow of the property. Once the net cash flow is determined, the value of the property is calculated using an appropriate capitalization rate for the property. The sales approach uses comparable sales prices in the market. When an internal evaluation is used, we place greater reliance on the income approach to value the collateral.

In preparing internal evaluations of property values, the Company seeks to obtain current data on the subject property from various sources, including: (

) the borrower; (

) copies of existing leases; (

) local real estate brokers and appraisers; (

) public records (such as for real estate taxes and water and sewer charges); (

) comparable sales and rental data in the market; (

) an inspection of the property and (

) interviews with tenants. These internal evaluations primarily focus on the income approach and comparable sales data to value the property.

As of

September 30, 2017,

we utilized recent

third

party appraisals of the collateral to measure impairment for

$39.2

million, or

82.9%,

of collateral dependent impaired loans, and used internal evaluations of the property’s value for

$8.1

million, or

17.1%,

of collateral dependent impaired loans.

The Company

may

restructure a loan to enable a borrower experiencing financial difficulties to continue making payments when it is deemed to be in the Company’s best long-term interest. This restructure

may

include reducing the interest rate or amount of the monthly payment for a specified period of time, after which the interest rate and repayment terms revert to the original terms of the loan. We classify these loans as Troubled Debt Restructured (“TDR”).

These restructurings have

not

included a reduction of principal balance. The Company believes that restructuring these loans in this manner will allow certain borrowers to become and remain current on their loans. All loans classified as TDR are considered impaired, however TDR loans which have been current for

six

consecutive months at the time they are restructured as TDR remain on accrual status and are

not

included as part of non-performing loans. Loans which were delinquent at the time they are restructured as a TDR are placed on non-accrual status and reported as non-accrual performing TDR loans until they have made timely payments for

six

consecutive months.

The allocation of a portion of the allowance for loan losses for a performing TDR loan is based upon the present value of the future expected cash flows discounted at the loan’s original effective rate, or for a non-performing TDR which is collateral dependent, the fair value of the collateral. At

September 30, 2017,

there were

commitments to lend additional funds to borrowers whose loans were modified to a TDR. The modification of loans to a TDR did

not

have a significant effect on our operating results, nor did it require a significant allocation of the allowance for loan losses.

The following tables shows loans modified and classified as TDR during the periods indicated:

	For the three months ended September 30, 2017
(Dollars in thousands)	Number		Balance		Modification description


Taxi medallion		4	$	1,306	Loan amortization extension
Total		4	$	1,306

	For the nine months ended
	September 30, 2017					September 30, 2016
(Dollars in thousands)	Number		Balance		Modification description	Number		Balance		Modification description

One-to-four family - residential		-	$	-			2	$	263	Received below market interest rates and the amortizations were extended
Commercial business and other		-		-			2		739	One received an amortization extension and one received a below market interest rate and an amortization extension
Taxi medallion		9		5,595	All loans amortizations were extended, with three loans also receiving a below market interest rate		-		-
Total		9	$	5,595			4	$	1,002

The Company did

not

modify and classify any loans as TDR during the

three

months ended

September 30, 2016.

The recorded investment of the loans modified and classified as TDR presented in the tables above, were unchanged as there was

principal forgiven in these modifications.

The following table shows our recorded investment for loans classified as TDR that are performing according to their restructured terms at the periods indicated:

	September 30, 2017				December 31, 2016
(Dollars in thousands)	Number of contracts		Recorded investment		Number of contracts		Recorded investment

Multi-family residential		9	$	2,533		9	$	2,572
Commercial real estate		2		2,031		2		2,062
One-to-four family - mixed-use property		5		1,765		5		1,800
One-to-four family - residential		3		577		3		591
Taxi medallion		21		15,074		12		9,735
Commercial business and other		2		517		2		675
Total performing troubled debt restructured		42	$	22,497		33	$	17,435

The following table shows our recorded investment for loans classified as TDR that are

not

performing according to their restructured terms at the periods indicated:

	September 30, 2017				December 31, 2016
(Dollars in thousands)	Number of contracts		Recorded investment		Number of contracts		Recorded investment

Multi-family residential		1	$	377		1	$	396

Total troubled debt restructurings that subsequently defaulted		1	$	377		1	$	396

During the

three

and

nine

months ended

September 30, 2017

and

2016

there were

TDR loans transferred to non-performing status.

The following table shows our non-performing loans at the periods indicated:

(In thousands)	September 30, 2017		December 31, 2016

Loans ninety days or more past due and still accruing:
Multi-family residential	$	415	$	-
Commercial real estate		38		-
One-to-four family - mixed-use property		129		386
Taxi medallion		1,147		-
Total		1,729		386

Non-accrual mortgage loans:
Multi-family residential		1,309		1,837
Commercial real estate		1,147		1,148
One-to-four family - mixed-use property		2,217		4,025
One-to-four family - residential		7,434		8,241
Total		12,107		15,251

Non-accrual non-mortgage loans:
Small Business Administration		50		1,886
Taxi medallion		-		3,825
Commercial business and other		4		68
Total		54		5,779

Total non-accrual loans		12,161		21,030

Total non-performing loans	$	13,890	$	21,416

During the

three

and

nine

months ended

September 30, 2017,

we did

not

foreclose on any consumer mortgages through in-substance repossession. We did

not

hold any foreclosed residential real estate properties at

September 30, 2017.

December 31, 2016,

we held

one

foreclosed residential real estate property for

$0.5

million. Included within net loans as of

September 30, 2017

and

December 31, 2016

was a recorded investment of

$8.7

million and

$11.4

million, respectively, of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process according to local requirements of the applicable jurisdiction.

The following is a summary of interest foregone on non-accrual loans and loans classified as TDR for the periods indicated:

	For the three months ended September 30,				For the nine months ended September 30,
	2017		2016		2017		2016
	(In thousands)
Interest income that would have been recognized had the loans performed in accordance with their original terms	$	401	$	468	$	1,249	$	1,405
Less: Interest income included in the results of operations		166		99		434		391
Total foregone interest	$	235	$	369	$	815	$	1,014

The following tables show an age analysis of our recorded investment in loans, including loans past maturity, at the periods indicated:

	September 30, 2017
(In thousands)	30 - 59 Days Past Due		60 - 89 Days Past Due		Greater than 90 Days		Total Past Due		Current		Total Loans

Multi-family residential	$	6,115	$	155	$	1,724	$	7,994	$	2,228,179	$	2,236,173
Commercial real estate		3,455		481		1,185		5,121		1,347,654		1,352,775
One-to-four family - mixed-use property		3,577		112		2,346		6,035		550,688		556,723
One-to-four family - residential		3,646		43		7,246		10,935		166,643		177,578
Co-operative apartments		-		-		-		-		7,035		7,035
Construction loans		-		-		-		-		15,811		15,811
Small Business Administration		-		245		-		245		14,240		14,485
Taxi medallion		-		-		1,147		1,147		17,018		18,165
Commercial business and other		-		-		4		4		674,702		674,706
Total	$	16,793	$	1,036	$	13,652	$	31,481	$	5,021,970	$	5,053,451

	December 31, 2016
(In thousands)	30 - 59 Days Past Due		60 - 89 Days Past Due		Greater than 90 Days		Total Past Due		Current		Total Loans

Multi-family residential	$	2,575	$	287	$	1,837	$	4,699	$	2,173,805	$	2,178,504
Commercial real estate		3,363		22		1,148		4,533		1,241,599		1,246,132
One-to-four family - mixed-use property		4,671		762		4,411		9,844		548,658		558,502
One-to-four family - residential		3,831		194		8,047		12,072		173,695		185,767
Co-operative apartments		-		-		-		-		7,418		7,418
Construction loans		-		-		-		-		11,495		11,495
Small Business Administration		13		-		1,814		1,827		13,371		15,198
Taxi medallion		-		-		3,825		3,825		15,171		18,996
Commercial business and other		22		1		-		23		597,099		597,122
Total	$	14,475	$	1,266	$	21,082	$	36,823	$	4,782,311	$	4,819,134

The following tables show the activity in the allowance for loan losses for the

three

month periods indicated:

September 30, 2017
(In thousands)	Multi-family residential			Commercial real estate			One-to-four family - mixed-use property			One-to-four family - residential			Construction loans			Small Business Administration		Taxi medallion		Commercial business and other			Unallocated			Total

Allowance for credit losses:
Beginning balance	$	5,917		$	4,688		$	2,568		$	990		$	130		$	306	$	2,330	$	4,668		$	560		$	22,157
Charge-off's		(290	)		-			(1	)		-			-			-		-		(33	)		-			(324	)
Recoveries		66			25			-			58			-			17		-		4			-			170
Provision (Benefit)		43			(86	)		(49	)		(90	)		(13	)		70		3,661		290			(560	)		3,266
Ending balance	$	5,736		$	4,627		$	2,518		$	958		$	117		$	393	$	5,991	$	4,929		$	-		$	25,269

September 30, 2016
(In thousands)	Multi-family residential			Commercial real estate		One-to-four family - mixed-use property			One-to-four family - residential			Construction loans		Small Business Administration			Taxi medallion		Commercial business and other			Unallocated			Total

Allowance for credit losses:
Beginning balance	$	6,177		$	4,445	$	3,326		$	1,044		$	75	$	574		$	1,042	$	4,669		$	846		$	22,198
Charge-off's		(90	)		-		(71	)		-			-		(361	)		-		(19	)		-			(541	)
Recoveries		11			11		47			-			-		44			-		25			-			138
Provision (Benefit)		(103	)		60		(234	)		(27	)		15		151			1,290		(477	)		(675	)		-
Ending balance	$	5,995		$	4,516	$	3,068		$	1,017		$	90	$	408		$	2,332	$	4,198		$	171		$	21,795

The following tables show the activity in the allowance for loan losses for the

nine

month periods indicated:

September 30, 2017
(In thousands)	Multi-family residential			Commercial real estate			One-to-four family - mixed-use property			One-to-four family - residential			Construction loans		Small Business Administration			Taxi medallion			Commercial business and other			Unallocated			Total

Allowance for credit losses:
Beginning balance	$	5,923		$	4,487		$	2,903		$	1,015		$	92	$	481		$	2,243		$	4,492		$	593		$	22,229
Charge-off's		(452	)		(4	)		(36	)		(170	)		-		(89	)		(54	)		(48	)		-			(853	)
Recoveries		297			93			68			58			-		66			-			45			-			627
Provision (Benefit)		(32	)		51			(417	)		55			25		(65	)		3,802			440			(593	)		3,266
Ending balance	$	5,736		$	4,627		$	2,518		$	958		$	117	$	393		$	5,991		$	4,929		$	-		$	25,269

September 30, 2016
(In thousands)	Multi-family residential			Commercial real estate		One-to-four family - mixed-use property			One-to-four family - residential			Construction loans		Small Business Administration			Taxi medallion		Commercial business and other			Unallocated		Total

Allowance for credit losses:
Beginning balance	$	6,718		$	4,239	$	4,227		$	1,227		$	50	$	262		$	343	$	4,469		$	-	$	21,535
Charge-off's		(155	)		-		(139	)		(74	)		-		(362	)		-		(59	)		-		(789	)
Recoveries		230			11		252			366			-		118			-		72			-		1,049
Provision (Benefit)		(798	)		266		(1,272	)		(502	)		40		390			1,989		(284	)		171		-
Ending balance	$	5,995		$	4,516	$	3,068		$	1,017		$	90	$	408		$	2,332	$	4,198		$	171	$	21,795

The following tables show the manner in which loans were evaluated for impairment at the periods indicated:

	September 30, 2017
(In thousands)	Multi-family residential		Commercial real estate		One-to-four family - mixed-use property		One-to-four family- residential		Co-operative apartments		Construction loans		Small Business Administration		Taxi Medallion		Commercial business and other		Total

Financing Receivables:
Ending Balance	$	2,236,173	$	1,352,775	$	556,723	$	177,578	$	7,035	$	15,811	$	14,485	$	18,165	$	674,706	$	5,053,451
Ending balance: individually evaluated for impairment	$	4,721	$	6,798	$	6,317	$	10,079	$	-	$	1,178	$	370	$	18,165	$	748	$	48,376
Ending balance: collectively evaluated for impairment	$	2,231,452	$	1,345,977	$	550,406	$	167,499	$	7,035	$	14,633	$	14,115	$	-	$	673,958	$	5,005,075

Allowance for credit losses:
Ending balance: individually evaluated for impairment	$	217	$	154	$	206	$	56	$	-	$	-	$	-	$	5,991	$	8	$	6,632
Ending balance: collectively evaluated for impairment	$	5,519	$	4,473	$	2,312	$	902	$	-	$	117	$	393	$	-	$	4,921	$	18,637

	December 31, 2016
(In thousands)	Multi-family residential		Commercial real estate		One-to-four family - mixed-use property		One-to-four family- residential		Co-operative apartments		Construction loans		Small Business Administration		Taxi Medallion		Commercial business and other		Unallocated		Total

Financing Receivables:
Ending Balance	$	2,178,504	$	1,246,132	$	558,502	$	185,767	$	7,418	$	11,495	$	15,198	$	18,996	$	597,122	$	-	$	4,819,134
Ending balance: individually evaluated for impairment	$	5,923	$	6,551	$	8,809	$	9,989	$	-	$	-	$	1,937	$	16,282	$	2,492	$	-	$	51,983
Ending balance: collectively evaluated for impairment	$	2,172,581	$	1,239,581	$	549,693	$	175,778	$	7,418	$	11,495	$	13,261	$	2,714	$	594,630	$	-	$	4,767,151

Allowance for credit losses:
Ending balance: individually evaluated for impairment	$	232	$	179	$	417	$	60	$	-	$	-	$	90	$	2,236	$	12	$	-	$	3,226
Ending balance: collectively evaluated for impairment	$	5,691	$	4,308	$	2,486	$	955	$	-	$	92	$	391	$	7	$	4,480	$	593	$	19,003

The following table shows our recorded investment, unpaid principal balance and allocated allowance for loan losses for impaired loans at the periods indicated:

	September 30, 2017						December 31, 2016
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
	(In thousands)
With no related allowance recorded:
Mortgage loans:
Multi-family residential	$	2,489	$	2,935	$	-	$	3,660	$	3,796	$	-
Commercial real estate		4,767		4,767		-		4,489		4,516		-
One-to-four family mixed-use property		5,079		5,454		-		6,435		6,872		-
One-to-four family residential		9,661		10,696		-		9,560		11,117		-
Co-operative apartments		-		-		-		-		-		-
Construction		1,178		1,178		-		-		-		-
Non-mortgage loans:
Small Business Administration		370		386		-		416		509		-
Taxi medallion		2,608		2,608		-		2,334		2,476		-
Commercial business and other		380		749		-		2,072		2,443		-

Total loans with no related allowance recorded		26,532		28,773		-		28,966		31,729		-

With an allowance recorded:
Mortgage loans:
Multi-family residential		2,232		2,232		217		2,263		2,263		232
Commercial real estate		2,031		2,031		154		2,062		2,062		179
One-to-four family mixed-use property		1,238		1,238		206		2,374		2,376		417
One-to-four family residential		418		418		56		429		429		60
Co-operative apartments		-		-		-		-		-		-
Construction		-		-		-		-		-		-
Non-mortgage loans:
Small Business Administration		-		-		-		1,521		1,909		90
Taxi medallion		15,557		15,557		5,991		13,948		13,948		2,236
Commercial business and other		368		368		8		420		420		12

Total loans with an allowance recorded		21,844		21,844		6,632		23,017		23,407		3,226

Total Impaired Loans:
Total mortgage loans	$	29,093	$	30,949	$	633	$	31,272	$	33,431	$	888

Total non-mortgage loans	$	19,283	$	19,668	$	5,999	$	20,711	$	21,705	$	2,338

The following table shows our average recorded investment and interest income recognized for impaired loans for the

three

months ended

September 30, 2017

and

2016:

	September 30, 2017				September 30, 2016
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(In thousands)
With no related allowance recorded:
Mortgage loans:
Multi-family residential	$	2,451	$	12	$	4,639	$	23
Commercial real estate		5,142		60		4,661		55
One-to-four family mixed-use property		5,269		45		8,234		37
One-to-four family residential		10,023		29		10,204		19
Co-operative apartments		-		-		-		-
Construction		890		15		285		-
Non-mortgage loans:
Small Business Administration		260		5		404		13
Taxi medallion		3,177		19		5,053		52
Commercial business and other		1,254		6		2,211		45

Total loans with no related allowance recorded		28,466		191		35,691		244

With an allowance recorded:
Mortgage loans:
Multi-family residential		2,242		28		2,279		29
Commercial real estate		2,040		24		2,080		24
One-to-four family mixed-use property		1,445		16		2,567		35
One-to-four family residential		422		4		435		4
Co-operative apartments		-		-		-		-
Construction		-		-		-		-
Non-mortgage loans:
Small Business Administration		-		-		397		1
Taxi medallion		14,716		73		6,459		17
Commercial business and other		385		5		448		7

Total loans with an allowance recorded		21,250		150		14,665		117

Total Impaired Loans:
Total mortgage loans	$	29,924	$	233	$	35,384	$	226

Total non-mortgage loans	$	19,792	$	108	$	14,972	$	135

The following table shows our average recorded investment and interest income recognized for impaired loans for the

nine

months ended

September 30, 2017

and

2016:

	September 30, 2017				September 30, 2016
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(In thousands)
With no related allowance recorded:
Mortgage loans:
Multi-family residential	$	2,650	$	57	$	5,129	$	69
Commercial real estate		5,881		214		4,841		162
One-to-four family mixed-use property		5,399		123		8,407		119
One-to-four family residential		10,062		85		10,457		69
Co-operative apartments		-		-		-		-
Construction		794		22		380		-
Non-mortgage loans:
Small Business Administration		230		9		353		38
Taxi medallion		3,771		74		3,369		155
Commercial business and other		1,584		93		2,265		136

Total loans with no related allowance recorded		30,371		677		35,201		748

With an allowance recorded:
Mortgage loans:
Multi-family residential		2,391		107		2,284		87
Commercial real estate		2,039		72		2,173		73
One-to-four family mixed-use property		1,379		50		2,622		107
One-to-four family residential		422		12		403		10
Co-operative apartments		-		-		-		-
Construction		-		-		-		-
Non-mortgage loans:
Small Business Administration		-		-		315		4
Taxi medallion		14,663		166		5,009		91
Commercial business and other		383		17		962		20

Total loans with an allowance recorded		21,277		424		13,768		392

Total Impaired Loans:
Total mortgage loans	$	31,017	$	742	$	36,696	$	696

Total non-mortgage loans	$	20,631	$	359	$	12,273	$	444

In accordance with our policy and the current regulatory guidelines, we designate loans as “Special Mention,” which are considered “Criticized Loans,” and “Substandard,” “Doubtful,” or “Loss,” which are considered “Classified Loans”. If a loan does

not

fall within

one

of the previous mentioned categories then the loan would be considered “Pass.” Loans that are non-accrual are designated as Substandard, Doubtful or Loss. These loan designations are updated quarterly. We designate a loan as Substandard when a well-defined weakness is identified that jeopardizes the orderly liquidation of the debt. We designate a loan Doubtful when it displays the inherent weakness of a Substandard loan with the added provision that collection of the debt in full, on the basis of existing facts, is highly improbable. We designate a loan as Loss if it is deemed the debtor is incapable of repayment. The Company does

not

hold any loans designated as Loss, as loans that are designated as Loss are charged to the Allowance for Loan Losses. We designate a loan as Special Mention if the asset does

not

warrant classification within

one

of the other classifications, but does contain a potential weakness that deserves closer attention.

The following table sets forth the recorded investment in loans designated as Criticized or Classified at the periods indicated:

	September 30, 2017
(In thousands)	Special Mention		Substandard		Doubtful		Loss		Total

Multi-family residential	$	9,333	$	2,188	$	-	$	-	$	11,521
Commercial real estate		1,015		4,767		-		-		5,782
One-to-four family - mixed-use property		1,700		4,551		-		-		6,251
One-to-four family - residential		915		9,503		-		-		10,418
Co-operative apartments		-		-		-		-		-
Construction loans		-		1,178		-		-		1,178
Small Business Administration		585		215		-		-		800
Taxi medallion		-		18,165		-		-		18,165
Commercial business and other		17,694		748		-		-		18,442
Total loans	$	31,242	$	41,315	$	-	$	-	$	72,557

	December 31, 2016
(In thousands)	Special Mention		Substandard		Doubtful		Loss		Total

Multi-family residential	$	7,133	$	3,351	$	-	$	-	$	10,484
Commercial real estate		2,941		4,489		-		-		7,430
One-to-four family - mixed-use property		4,197		7,009		-		-		11,206
One-to-four family - residential		1,205		9,399		-		-		10,604
Co-operative apartments		-		-		-		-		-
Construction loans		-		-		-		-		-
Small Business Administration		540		436		-		-		976
Taxi medallion		2,715		16,228		54		-		18,997
Commercial business and other		9,924		2,493		-		-		12,417
Total loans	$	28,655	$	43,405	$	54	$	-	$	72,114

Commitments to extend credit (principally real estate mortgage loans) and lines of credit (principally home equity lines of credit and business lines of credit) amounted to

$94.7

million and

$229.0

million, respectively, at

September 30, 2017.