

	June 30,		December 31,
	2020		2019
	(In thousands)
Real estate loans:
One-to-four family	$	2,164,185	$	2,077,079
Multifamily and commercial	2,874,019		2,919,985
Construction	326,343		298,942
Commercial business loans	899,506		483,215
Consumer loans:
Home equity loans and advances	359,813		388,127
Other consumer loans	1,600		1,960
Total gross loans	6,625,466		6,169,308
Purchased credit-impaired loans	6,881		7,021
Net deferred loan costs, fees and purchased premiums and discounts	7,527		21,237
Loans receivable	$	6,639,874	$	6,197,566

The Company had $9.6 million of one-to-four family real estate loans and commercial business loans held-for-sale at June 30, 2020. The Company had no loans held-for-sale at December 31, 2019. During the three months ended June 30, 2020, the Company sold $52.4 million of one-to-four family real estate loans held-for-sale, resulting in gross gains of $740,000 and no gross losses. During the six months ended June 30, 2020, the Company sold $104.0 million of one-to-four family real estate loans held-for-sale resulting in gross gains of $1.4 million and no gross losses. During the three months ended June 30, 2019, the Company sold $27.6 million of one-to-four family real estate loans held-for-sale resulting in gross gains of $196,000 and no gross losses. During the six months ended June 30, 2019, the Company sold $45.0 million of one-to-four family real estate loans held-for-sale resulting in gross gains of $328,000 and no gross losses.

During the six months ended June 30, 2020, the Company sold $8.8 million and $7.3 million of one-to-four family real estate and home equity loans and commercial business loans, respectively, included in loans receivable. The Company recognized gross gains of $82,000 and $55,000 and no gross losses, respectively. During the three months ended June 30, 2020, the Company sold $579,000 of commercial business loans included in loans receivable, resulting in $55,000 gross gains or losses. During the three and six months ended June 30, 2020, the Company sold one construction loan totaling $6.7 million included in loans receivable, resulting in no gross gains or gross losses. During the three and six months ended June 30, 2019, the Company sold $2.5 million of one-to-four family real estate and home equity loans included in loans receivable, resulting in no gross gains or gross losses.

During the three and six months ended June 30, 2020, there were no loans purchased by the Company. During the three and six months ended June 30, 2019, the Company purchased $2.6 million and $5.0 million, respectively, of one-to-four family real estate loan from third parties. During the three and six months ended June 30, 2019, the Company purchased $24.9 million of commercial real estate loans from third parties.

The Company has entered into guarantor swaps with Freddie Mac which results in improved liquidity. During the three and six months ended June 30, 2020, no loans were sold. During the three and six months ended June 30, 2019, the Company exchanged $15.6 million and $21.6 million, respectively, of loans for a Freddie Mac mortgage participation certificate. The Company retained the servicing of these loans.



	June 30, 2020
	30-59 Days		60-89 Days		90 Days or More		Total Past Due		Non-accrual		Current		Total
	(In thousands)
Real estate loans:
One-to-four family	$	4,105	$	1,120	$	3,278	$	8,503	$	4,872	$	2,150,810	$	2,164,185
Multifamily and commercial	3,830		2,072		2,169		8,071		2,368		2,863,580		2,874,019
Construction	1,580		—		—		1,580		—		324,763		326,343
Commercial business loans	594		4,460		3,515		8,569		5,167		885,770		899,506
Consumer loans:
Home equity loans and advances	1,344		348		310		2,002		1,095		356,716		359,813
Other consumer loans	—		—		—		—		—		1,600		1,600
Total loans	$	11,453	$	8,000	$	9,272	$	28,725	$	13,502	$	6,583,239	$	6,625,466



	December 31, 2019
	30-59 Days		60-89 Days		90 Days or More		Total Past Due		Non-accrual		Current		Total
	(In thousands)
Real estate loans:
One-to-four family	$	6,249	$	2,132	$	1,638	$	10,019	$	1,732	$	2,065,328	$	2,077,079
Multifamily and commercial	626		1,210		716		2,552		716		2,916,717		2,919,985
Construction	—		—		—		—		—		298,942		298,942
Commercial business loans	1,056		—		2,489		3,545		3,686		475,984		483,215
Consumer loans:
Home equity loans and advances	1,708		246		405		2,359		553		385,215		388,127
Other consumer loans	3		—		—		3		—		1,957		1,960
Total loans	$	9,642	$	3,588	$	5,248	$	18,478	$	6,687	$	6,144,143	$	6,169,308

The Company considers a loan to be delinquent when we have not received a payment within 30 days of its contractual due date. Generally, a loan is designated as a non-accrual loan when the payment of interest is 90 days or more in arrears of its contractual due date. Non-accruing loans are returned to accrual status after there has been a sustained period of repayment performance (generally

six consecutive months of payments) and both principal and interest are deemed collectible. The Company identifies loans that may need to be charged-off as a loss, by reviewing all delinquent loans, classified loans and other loans that management may have concerns about collectability. At June 30, 2020 and December 31, 2019, non-accrual loans totaled $13.5 million and $6.7 million, respectively. Included in non-accrual loans at June 30, 2020, are 21 loans totaling $4.2 million which are less than 90 days in arrears. At December 31, 2019, eight loans totaling $1.5 million were less than 90 days in arrears.

PCI loans are loans acquired at a discount primarily due to deteriorated credit quality. These loans are accounted for at fair value at acquisition, based upon the present value of expected future cash flows, with no related allowance for loan losses. PCI loans acquired in the Stewardship acquisition totaled $6.9 million at both June 30, 2020 and December 31, 2019. PCI loans acquired in the Roselle acquisition totaled $226,000 at June 30, 2020.

The following table presents changes in accretable yield for PCI loans for the three and six months ended June 30, 2020. There were no PCI loans outstanding for the three and six months ended June 30, 2019.



	Three Months Ended June 30, 2020			Six Months Ended June 30, 2020
	(In thousands)

Balance at beginning of period	$	463		$	511
Acquisition	58			58
Accretion	(49		)	(98		)
Net change in expected cash flows	(1		)	—
Balance at end of period	$	471		$	471

We may obtain physical possession of real estate collateralizing a residential mortgage loan via foreclosure or through an in-substance repossession. At June 30, 2020 and December 31, 2019, the Company had no real estate owned. At June 30, 2020 and December 31, 2019 we had one and four residential mortgage loans with carrying values totaling $180,000 and $522,000, respectively, collateralized by residential real estate which are in the process of foreclosure.



	June 30, 2020
	One-to-Four Family		Multifamily and Commercial		Construction		Commercial Business		Home Equity Loans and Advances		Other Consumer Loans		Total
	(In thousands)
Allowance for loan losses:
Individually evaluated for impairment	$	434	$	584	$	—	$	1,100	$	11	$	—	$	2,129
Collectively evaluated for impairment	16,199		26,746		10,217		17,214		1,503		7		71,886
Loans acquired with deteriorated credit quality	—		—		—		—		—		—		—
Total	$	16,633	$	27,330	$	10,217	$	18,314	$	1,514	$	7	$	74,015

Total loans:
Individually evaluated for impairment	$	8,810	$	14,960	$	—	$	5,293	$	2,008	$	—	$	31,071
Collectively evaluated for impairment	2,155,375		2,859,059		326,343		894,213		357,805		1,600		6,594,395
Loans acquired with deteriorated credit quality	297		4,946		—		1,638		—		—		6,881
Total loans	$	2,164,482	$	2,878,965	$	326,343	$	901,144	$	359,813	$	1,600	$	6,632,347



	December 31, 2019
	One-to-Four Family		Multifamily and Commercial		Construction		Commercial Business		Home Equity Loans and Advances		Other Consumer Loans		Total
	(In thousands)
Allowance for loan losses:
Individually evaluated for impairment	$	484	$	2	$	—	$	1,121	$	14	$	—	$	1,621
Collectively evaluated for impairment	13,296		22,978		7,435		14,715		1,655		9		60,088
Loans acquired with deteriorated credit quality	—		—		—		—		—		—		—
Total	$	13,780	$	22,980	$	7,435	$	15,836	$	1,669	$	9	$	61,709

Total loans:
Individually evaluated for impairment	$	8,891	$	2,599	$	—	$	5,178	$	2,143	$	—	$	18,811
Collectively evaluated for impairment	2,068,188		2,917,386		298,942		478,037		385,984		1,960		6,150,497
Loans acquired with deteriorated credit quality	429		4,866		—		1,726		—		—		7,021
Total loans	$	2,077,508	$	2,924,851	$	298,942	$	484,941	$	388,127	$	1,960	$	6,176,329

Loan modifications to borrowers experiencing financial difficulties that are considered troubled debt restructurings ("TDRs") primarily involve the lowering of 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. 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.

Section 4013 of the CARES Act, “Temporary Relief from Troubled Debt Restructurings,” allows banks to temporarily suspend certain requirements under GAAP related to TDRs for a limited period of time to account for the effects of COVID-19. The Bank elected to account for modifications on certain loans under Section 4013 of the CARES Act or, if the loan modification was not eligible under Section 4013, used the criteria in the COVID-19 guidance to determine when the loan modification was not a TDR in accordance with ASC 310-40. Guidance noted that modification or deferral programs mandated by the federal or a state government related to COVID-19 would not be in the scope of ASC 310-40, such as a state program that requires all institutions within that state to suspend mortgage payments for a specified period.

There were no loans modified during the three months ended June 30, 2020 and 2019. The following table presents the number of loans modified as TDRs during the six months ended June 30, 2020 and 2019, along with their balances immediately prior to the modification date and post-modification. Post-modification recorded investment represents the net book balance immediately following modification.



	For the Six Months Ended June 30,
	2020					2019
	No. of Loans	Pre-modification Recorded Investment		Post-modification Recorded Investment		No. of Loans	Pre-modification Recorded Investment		Post-modification Recorded Investment
	(Dollars in thousands)
Troubled Debt Restructurings
Real Estate loans:
Multifamily and commercial	1	$	10,212	$	11,507	1	$	4,095	$	4,095
Total restructured loans	1	$	10,212	$	11,507	1	$	4,095	$	4,095



	For the Three Months Ended June 30,
	One-to-Four Family			Multifamily and Commercial		Construction			Commercial Business			Home Equity Loans and Advances			Other Consumer Loans			Unallocated		Total
	(In thousands)
2020
Balance at beginning of period	$	16,798		$	26,085	$	9,399		$	17,191		$	1,718		$	9		$	—	$	71,200
Provision charged (credited)	(51		)	1,243		817			3,911			(183		)	(1		)	—		5,736
Recoveries	239			2		1			12			9			—			—		263
Charge-offs	(353		)	—		—			(2,800		)	(30		)	(1		)	—		(3,184		)
Balance at end of period	$	16,633		$	27,330	$	10,217		$	18,314		$	1,514		$	7		$	—	$	74,015

2019
Balance at beginning of period	$	17,375		$	20,986	$	9,033		$	12,225		$	3,146		$	6		$	—	$	62,771
Provision charged (credited)	(1,254		)	1,693		(228		)	441			(542		)	2			—		112
Recoveries	4			—		1			53			—			—			—		58
Charge-offs	(515		)	—		—			(1		)	(21		)	(1		)	—		(538		)
Balance at end of period	$	15,610		$	22,679	$	8,806		$	12,718		$	2,583		$	7		$	—	$	62,403



	For the Six Months Ended June 30,
	One-to-Four Family			Multifamily and Commercial			Construction		Commercial Business			Home Equity Loans and Advances			Other Consumer Loans			Unallocated		Total
	(In thousands)
2020
Balance at beginning of period	$	13,780		$	22,980		$	7,435	$	15,836		$	1,669		$	9		$	—	$	61,709
Provision charged (credited)	3,050			4,339			2,781		5,258			(124		)	—			—		15,304
Recoveries	242			12			1		83			23			—			—		361
Charge-offs	(439		)	(1		)	—		(2,863		)	(54		)	(2		)	—		(3,359		)
Balance at end of period	$	16,633		$	27,330		$	10,217	$	18,314		$	1,514		$	7		$	—	$	74,015

2019
Balance at beginning of period	$	15,232		$	23,251		$	7,217	$	14,176		$	2,458		$	8		$	—	$	62,342
Provision charged (credited)	868			(572		)	1,588		(1,555		)	219			—			—		548
Recoveries	25			—			1		366			7			—			—		399
Charge-offs	(515		)	—			—		(269		)	(101		)	(1		)	—		(886		)
Balance at end of period	$	15,610		$	22,679		$	8,806	$	12,718		$	2,583		$	7		$	—	$	62,403



	At June 30, 2020
	Recorded Investment		Unpaid Principal Balance		Specific Allowance
	(In thousands)
With no allowance recorded:
Real estate loans:
One-to-four family	$	4,418	$	5,301	$	—
Multifamily and commercial	735		771		—
Commercial business loans	4,016		4,204		—
Consumer loans:
Home equity loans and advances	1,052		1,189		—
	10,221		11,465		—
With a specific allowance recorded:
Real estate loans:
One-to-four family	4,392		4,475		434
Multifamily and commercial	14,225		14,928		584
Commercial business loans	1,277		4,264		1,100
Consumer loans:
Home equity loans and advances	956		956		11
	20,850		24,623		2,129
Total:
Real estate loans:
One-to-four family	8,810		9,776		434
Multifamily and commercial	14,960		15,699		584
Commercial business loans	5,293		8,468		1,100
Consumer loans:
Home equity loans and advances	2,008		2,145		11
Total loans	$	31,071	$	36,088	$	2,129



	At December 31, 2019
	Recorded Investment		Unpaid Principal Balance		Specific Allowance
	(In thousands)
With no allowance recorded:
Real estate loans:
One-to-four family	$	4,314	$	5,473	$	—
Multifamily and commercial	1,494		2,191		—
Commercial business loans	3,859		4,048		—
Consumer loans:
Home equity loans and advances	1,080		1,217		—
	10,747		12,929		—
With a specific allowance recorded:
Real estate loans:
One-to-four family	4,577		4,613		484
Multifamily and commercial	1,105		1,105		2
Commercial business loans	1,319		4,307		1,121
Consumer loans:
Home equity loans and advances	1,063		1,063		14
	8,064		11,088		1,621
Total:
Real estate loans:
One-to-four family	8,891		10,086		484
Multifamily and commercial	2,599		3,296		2
Commercial business loans	5,178		8,355		1,121
Consumer loans:
Home equity loans and advances	2,143		2,280		14
	$	18,811	$	24,017	$	1,621

Specific allocations of the allowance for loan losses attributable to impaired loans totaled $2.1 million and $1.6 million at June 30, 2020 and December 31, 2019, respectively. At June 30, 2020 and December 31, 2019, impaired loans for which there was no related allowance for loan losses totaled $10.2 million and $10.7 million, respectively.

The recorded investment in TDRs totaled $31.3 million at June 30, 2020, of which three loans totaling $603,000 were 30-59 days past due, two loans totaling $364,000 were 60-89 days past due, and six loans totaling $1.6 million were 90 days past due. The remaining loans modified were current at the time of restructuring and have complied with the terms of their restructure agreement at June 30, 2020. The recorded investment in TDRs totaled $20.0 million at December 31, 2019, of which there were no loans over 90 days past due and three loans totaling $660,000 were 30-59 days past due. The remaining loans modified were current at the time of restructuring and have complied with the terms of their restructure agreement at December 31, 2019.

The following tables present interest income recognized for loans individually evaluated for impairment, by loan segment, excluding PCI loans for the three and six months ended June 30, 2020 and 2019:



	For the Three Months Ended June 30,
	2020				2019
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(In thousands)
Real estate loans:
One-to-four family	$	8,647	$	81	$	8,611	$	108
Multifamily and commercial	14,960		32		2,666		37
Construction	—		—		1,700		—
Commercial business loans	5,871		157		6,616		98
Consumer loans:
Home equity loans and advances	2,062		29		2,699		47
Total loans	$	31,540	$	299	$	22,292	$	290



	For the Six Months Ended June 30,
	2020				2019
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(In thousands)
Real estate loans:
One-to-four family	$	8,728	$	188	$	9,149	$	214
Multifamily and commercial	10,840		198		2,681		74
Construction	—		—		1,133		25
Commercial business loans	5,640		224		5,430		178
Consumer loans:
Home equity loans and advances	2,089		58		2,920		99
Total loans	$	27,297	$	668	$	21,313	$	590

The Company utilizes an eight-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 (Pass), with a rating of 1 established for loans with minimal risk. Loans that are deemed to be of “questionable quality” are rated 5 (Special Mention) or 6 (Substandard). Loans with adverse classifications are rated 7 (Doubtful) or 8 (Loss). The risk ratings are also confirmed through periodic loan review examinations which are currently performed by both an independent third-party and the Company's credit risk review department. The Company requires an annual review be performed above certain dollar thresholds, depending on loan type, to help determine the appropriate risk ratings. Results from examinations are presented to the Audit Committee of the Board of Directors.



	June 30, 2020
	One-to-Four Family		Multifamily and Commercial		Construction		Commercial Business		Home Equity Loans and Advances		Other Consumer Loans		Total
	(In thousands)

Pass	$	2,157,351	$	2,850,202	$	326,343	$	877,804	$	358,526	$	1,600	$	6,571,826
Special mention	411		4,507		—		13,102		—		—		18,020
Substandard	6,423		19,310		—		8,600		1,287		—		35,620
Doubtful	—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—
Total	$	2,164,185	$	2,874,019	$	326,343	$	899,506	$	359,813	$	1,600	$	6,625,466



	December 31, 2019
	One-to-Four Family		Multifamily and Commercial		Construction		Commercial Business		Home Equity Loans and Advances		Other Consumer Loans		Total
	(In thousands)

Pass	$	2,072,878	$	2,900,286	$	298,942	$	454,183	$	387,251	$	1,960	$	6,115,500
Special mention	419		4,724		—		20,170		—		—		25,313
Substandard	3,782		14,975		—		8,862		876		—		28,495
Doubtful	—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—
Total	$	2,077,079	$	2,919,985	$	298,942	$	483,215	$	388,127	$	1,960	$	6,169,308