
	September 30,		December 31,
	2020		2019
	(In thousands)
Real estate loans:
One-to-four family	$	2,053,293	$	2,077,079
Multifamily and commercial	2,863,718		2,919,985
Construction	307,659		298,942
Commercial business loans	884,931		483,215
Consumer loans:
Home equity loans and advances	340,962		388,127
Other consumer loans	1,538		1,960
Total gross loans	6,452,101		6,169,308
Purchased credit-impaired loans	6,706		7,021
Net deferred loan costs, fees and purchased premiums and discounts	10,038		21,237
Loans receivable	$	6,468,845	$	6,197,566

The Company had $4.1 million of small business administration loans held-for-sale at September 30, 2020. The Company had no loans held-for-sale at December 31, 2019. During the three months ended September 30, 2020, the Company sold $7.8 million of one-to-four family real estate loans held-for-sale, resulting in gross gains of $327,000 and no gross losses. During the nine months ended September 30, 2020, the Company sold $111.8 million of one-to-four family real estate loans held-for-sale resulting in gross gains of $1.7 million and no gross losses. During the three months ended September 30, 2019, the Company sold $49.1 million of one-to-four family real estate loans held-for-sale resulting in gross gains of $382,000 and no gross losses. During the nine months ended September 30, 2019, the Company sold $94.8 million of one-to-four family real estate loans held-for-sale resulting in gross gains of $710,000 and no gross losses.

During the three months ended September 30, 2020, the Company sold one construction loan totaling $5.8 million included in loans receivable, resulting in no gross gains or losses. During the three months ended September 30, 2020, the Company sold one small business administration loan totaling $274,000 included in loans receivable, resulting in a gross gain of $23,000. During the nine months ended September 30, 2020, the Company sold $8.8 million of one-to-four family real estate loans, resulting in gross gains of $82,000 and no gross losses. During the nine months ended September 30, 2020, the Company sold construction loans totaling $12.5 million included in loans receivable, resulting in no gross gains or gross losses. During the nine months ended September 30, 2020, the Company sold commercial loans and small business administration loans totaling $7.6 million, resulting in gross gains of $78,000 and no gross losses. During the three and nine months ended September 30, 2019, the Company sold $2.3 million and $4.8 million, respectively 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 nine months ended September 30, 2019, the Company sold $5.5 million of commercial real estate loans included in loans receivable, resulting in no gross gains or gross losses.

During the three and nine months ended September 30, 2020, there were no loans purchased by the Company. During the three months ended September 30, 2019, there were no loans purchased by the Company. During the nine months ended September 30, 2019, the Company purchased $5.0 million of one-to-four family real estate loan from third parties and 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 nine months ended September 30, 2020, the Company exchanged $48.5 million of loans for Freddie Mac mortgage participation certificates, resulting in gross gains of $1.5 million and no gross losses. During the three months ended September 30, 2019, no loans were securitized. During the nine months ended September 30, 2019 the Company exchanged $21.6 million of loans for a Freddie Mac mortgage participation certificate. The Company retained the servicing of these loans.


	September 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	$	4,347	$	542	$	1,760	$	6,649	$	2,881	$	2,043,763	$	2,053,293
Multifamily and commercial	600		1,772		2,798		5,170		2,995		2,855,553		2,863,718
Construction	80		—		—		80		—		307,579		307,659
Commercial business loans	2,910		2,643		2,698		8,251		4,536		872,144		884,931
Consumer loans:
Home equity loans and advances	1,610		186		323		2,119		499		338,344		340,962
Other consumer loans	1		1		—		2		—		1,536		1,538
Total loans	$	9,548	$	5,144	$	7,579	$	22,271	$	10,911	$	6,418,919	$	6,452,101


	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 September 30, 2020 and December 31, 2019, non-accrual loans totaled $10.9 million and $6.7 million, respectively. Included in non-accrual loans at September 30, 2020, are 22 loans totaling $3.9 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.

At September 30, 2020 and December 31, 2019, there were no loans past due 90 days or more still accruing interest other than COVID-19 related loan forbearance and deferrals. In accordance with the CARES Act, these loans are not included in the aging of loans receivable by portfolio segment in the table above, and the Bank continues to accrue interest income during the forbearance or deferral period. If adverse information indicating that the borrower's capability of repaying all amounts due is unlikely, the interest accrual will cease.

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 $5.9 million at September 30, 2020 and $6.9 million at December 31, 2019. PCI loans acquired in the Roselle acquisition totaled $179,000 at September 30, 2020.

We may obtain physical possession of real estate collateralizing a residential mortgage loan via foreclosure or through an in-substance repossession. At September 30, 2020 and December 31, 2019, the Company had no real estate owned. At September 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.


	September 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	$	406	$	550	$	—	$	871	$	12	$	—	$	1,839
Collectively evaluated for impairment	15,369		30,439		10,534		16,631		1,314		7		74,294
Loans acquired with deteriorated credit quality	—		—		—		—		—		—		—
Total	$	15,775	$	30,989	$	10,534	$	17,502	$	1,326	$	7	$	76,133

Total loans:
Individually evaluated for impairment	$	7,230	$	32,090	$	—	$	4,664	$	1,862	$	—	$	45,846
Collectively evaluated for impairment	2,046,063		2,831,628		307,659		880,267		339,100		1,538		6,406,255
Loans acquired with deteriorated credit quality	291		4,923		—		1,492		—		—		6,706
Total loans	$	2,053,584	$	2,868,641	$	307,659	$	886,423	$	340,962	$	1,538	$	6,458,807


	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.

The following table presents the number of loans modified as TDRs during the three and nine months ended September 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 Three Months Ended September 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	4	$	16,387	$	16,387	—	$	—	$	—
Commercial business loans	1	1,295		1,295		—	—		—


Total restructured loans	5	$	17,682	$	17,682	—	$	—	$	—


	For the Nine Months Ended September 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	4	$	16,387	$	16,387	—	$	—	$	—
Commercial business loans	2	11,507		12,802		1	4,095		4,095


Total restructured loans	6	$	27,894	$	29,189	1	$	4,095	$	4,095


	For the Three Months Ended September 30,
	One-to-Four Family		Multifamily and Commercial		Construction		Commercial Business		Home Equity Loans and Advances		Other Consumer Loans		Total
	(In thousands)
2020
Balance at beginning of period	$	16,633	$	27,330	$	10,217	$	18,314	$	1,514	$	7	$	74,015
Provision charged (credited)	(758)		3,659		317		(573)		(129)		—		2,516
Recoveries	87		—		—		128		32		—		247
Charge-offs	(187)		—		—		(367)		(91)		—		(645)
Balance at end of period	$	15,775	$	30,989	$	10,534	$	17,502	$	1,326	$	7	$	76,133

2019
Balance at beginning of period	$	15,610	$	22,679	$	8,806	$	12,718	$	2,583	$	7	$	62,403
Provision charged (credited)	347		290		(1,047)		2,040		(474)		1		1,157
Recoveries	4		—		1		8		22		—		35
Charge-offs	(228)		—		—		(738)		—		—		(966)
Balance at end of period	$	15,733	$	22,969	$	7,760	$	14,028	$	2,131	$	8	$	62,629


	For the Nine Months Ended September 30,
	One-to-Four Family		Multifamily and Commercial		Construction		Commercial Business		Home Equity Loans and Advances		Other Consumer Loans		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)	2,292		7,998		3,098		4,685		(253)		—		17,820
Recoveries	329		12		1		211		55		—		608
Charge-offs	(626)		(1)		—		(3,230)		(145)		(2)		(4,004)
Balance at end of period	$	15,775	$	30,989	$	10,534	$	17,502	$	1,326	$	7	$	76,133

2019
Balance at beginning of period	$	15,232	$	23,251	$	7,217	$	14,176	$	2,458	$	8	$	62,342
Provision charged (credited)	1,215		(282)		541		485		(255)		1		1,705
Recoveries	29		—		2		374		29		—		434
Charge-offs	(743)		—		—		(1,007)		(101)		(1)		(1,852)
Balance at end of period	$	15,733	$	22,969	$	7,760	$	14,028	$	2,131	$	8	$	62,629


	At September 30, 2020
	Recorded Investment		Unpaid Principal Balance		Specific Allowance
	(In thousands)
With no allowance recorded:
Real estate loans:
One-to-four family	$	2,825	$	3,616	$	—
Multifamily and commercial	20,389		20,426		—

Commercial business loans	2,577		2,680		—
Consumer loans:
Home equity loans and advances	708		845		—
	26,499		27,567		—
With a specific allowance recorded:
Real estate loans:
One-to-four family	4,405		4,420		406
Multifamily and commercial	11,701		12,316		550

Commercial business loans	2,087		5,429		871
Consumer loans:
Home equity loans and advances	1,154		1,154		12
	19,347		23,319		1,839
Total:
Real estate loans:
One-to-four family	7,230		8,036		406
Multifamily and commercial	32,090		32,742		550

Commercial business loans	4,664		8,109		871
Consumer loans:
Home equity loans and advances	1,862		1,999		12
Total loans	$	45,846	$	50,886	$	1,839


	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 $1.8 million and $1.6 million at September 30, 2020 and December 31, 2019, respectively. At September 30, 2020 and December 31, 2019, impaired loans for which there was no related allowance for loan losses totaled $26.5 million and $10.7 million, respectively.

The recorded investment in TDRs totaled $44.1 million at September 30, 2020, of which one loan totaling $420,000 was 30-59 days past due, one loan totaling $262,000 was 60-89 days past due, and three loans totaling $910,000 were over 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 September 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.


	For the Three Months Ended September 30,
	2020				2019
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(In thousands)
Real estate loans:
One-to-four family	$	8,020	$	74	$	8,773	$	101
Multifamily and commercial	23,525		227		2,637		37
Construction	—		—		850		—
Commercial business loans	4,979		52		7,461		88
Consumer loans:
Home equity loans and advances	1,935		28		2,629		35
Total loans	$	38,459	$	381	$	22,350	$	261


	For the Nine Months Ended September 30,
	2020				2019
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(In thousands)
Real estate loans:
One-to-four family	$	8,175	$	226	$	9,144	$	340
Multifamily and commercial	20,670		653		2,667		111
Construction	—		—		850		—
Commercial business loans	5,468		196		5,848		268
Consumer loans:
Home equity loans and advances	1,995		85		2,866		122
Total loans	$	36,308	$	1,160	$	21,375	$	841

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.


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

Pass	$	2,046,613	$	2,828,021	$	307,659	$	869,122	$	340,047	$	1,538	$	6,393,000
Special mention	408		15,819		—		8,061		—		—		24,288
Substandard	6,272		19,878		—		7,748		915		—		34,813
Doubtful	—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—
Total	$	2,053,293	$	2,863,718	$	307,659	$	884,931	$	340,962	$	1,538	$	6,452,101


	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