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Loans Receivable and Allowance for Loan Losses

12 Months Ended

Dec. 31, 2020

Loans Receivable and Allowance for Loan Losses

Loans Receivable and Allowance for Credit Losses

On January 1, 2020, the Company adopted CECL, which replaced the incurred loss methodology with an expected loss methodology. The adoption of the new standard resulted in the Company recording a $7.9 million increase to the allowance for credit losses on loans with a corresponding cumulative effect adjustment to decrease retained earnings by $5.9 million, net of income taxes. (See Adoption of CECL table below for additional detail.)

Loans receivable at December 31, 2020 and 2019 are summarized as follows (in thousands):


	2020		2019
Mortgage loans:
Residential	$	1,294,702	1,077,689
Commercial	3,458,666		2,578,393
Multi-family	1,484,515		1,225,551
Construction	541,939		429,812
Total mortgage loans	6,779,822		5,311,445
Commercial loans	2,567,470		1,634,759
Consumer loans	492,566		391,360
Total gross loans	9,839,858		7,337,564
PCI loans prior to CECL	—		746
Premiums on purchased loans	1,566		2,474
Unearned discounts	(12)		(26)
Net deferred fees	(18,522)		(7,873)
Total loans	$	9,822,890	7,332,885

Premiums and discounts on purchased loans are amortized over the lives of the loans as an adjustment to yield. Required reductions due to loan prepayments are charged against interest income. For the years ended December 31, 2020, 2019 and 2018, $1.0 million, $845,000 and $894,000 decreased interest income, respectively, as a result of prepayments and normal amortization.

The following tables summarize the aging of loans receivable by portfolio segment and class of loans (in thousands). The December 31, 2020 balances include PCD loans, while the December 31, 2019 balances exclude PCI loans (in accordance with ASC 310, prior to the adoption of ASU 2016-13 on January 1, 2020):


	At December 31, 2020
	30-59 Days		60-89 Days	Non-accrual	90 days or more past due and accruing	Total Past Due	Current	Total Loans Receivable	Non-accrual loans with no related allowance
Mortgage loans:
Residential	$	15,789	8,852	9,315	—	33,956	1,260,746	1,294,702	9,315
Commercial	761		113	31,982	—	32,856	3,425,810	3,458,666	20,482
Multi-family	206		585	—	—	791	1,483,724	1,484,515	—
Construction	—		—	1,392	—	1,392	540,547	541,939	1,392
Total mortgage loans	16,756		9,550	42,689	—	68,995	6,710,827	6,779,822	31,189
Commercial loans	1,658		1,179	42,118	—	44,955	2,522,515	2,567,470	15,541
Consumer loans	4,348		4,519	2,283	—	11,150	481,416	492,566	2,283
Total gross loans	$	22,762	15,248	87,090	—	125,100	9,714,758	9,839,858	49,013


	At December 31, 2019
	30-59 Days		60-89 Days	Non-accrual	90 days or more past due and accruing	Total Past Due	Current	Total Loans Receivable	Non-accrual loans with no related allowance
Mortgage loans:
Residential	$	5,905	2,579	8,543	—	17,027	1,060,662	1,077,689	2,989
Commercial	—		—	5,270	—	5,270	2,573,123	2,578,393	—
Multi-family	—		—	—	—	—	1,225,551	1,225,551	—
Construction	—		—	—	—	—	429,812	429,812	—
Total mortgage loans	5,905		2,579	13,813	—	22,297	5,289,148	5,311,445	2,989
Commercial loans	2,383		95	25,160	—	27,638	1,607,121	1,634,759	3,238
Consumer loans	1,276		337	1,221	—	2,834	388,526	391,360	569
Total gross loans	$	9,564	3,011	40,194	—	52,769	7,284,795	7,337,564	6,796

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 amount of these nonaccrual loans was $87.1 million and $40.2 million at December 31, 2020 and 2019, respectively. There were no loans 90-days or greater past due and still accruing interest at December 31, 2020 and 2019. The increase in non-performing loans in 2020 reflects the effects of the protracted duration of the pandemic and related government response, and the attendant increased uncertainty of affected borrowers’ ability to repay all contractually due principal and interest.

Management has elected to measure an allowance for credit losses for accrued interest receivables specifically related to any loan that has been deferred as a result of COVID-19. Generally, accrued interest is written off by reversing interest income during the quarter the loan is moved from an accrual to a non-accrual status.

If the non-accrual loans had performed in accordance with their original terms, interest income would have increased by $3.2 million, $1.7 million and $1.4 million, for the years ended December 31, 2020, 2019 and 2018, respectively. The amount of cash basis interest income that was recognized on impaired loans during the years ended December 31, 2020, 2019 and 2018 was $1.9 million, $2.1 million and $2.0 million respectively.

The Company defines an impaired loan as a non-homogeneous loan greater than $1.0 million, for which, based on current information, the Bank does not expect to collect all amounts due under the contractual terms of the loan agreement. Impaired loans also include all loans modified as troubled debt restructurings (“TDRs”). An allowance for collateral-dependent impaired loans that have been modified in a TDR is measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price, or the estimated fair value of the collateral, less any selling costs. The Company uses third-party appraisals to determine the fair value of the underlying collateral in its analysis of collateral-dependent loans. A third-party appraisal is generally ordered as soon as a loan is designated as a collateral-dependent loan and updated annually, or more frequently if required.

A financial asset is considered collateral-dependent when the debtor is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. For all classes of loans deemed collateral-dependent, the Company estimates expected credit losses based on the collateral’s fair value less any selling costs. A specific allocation of the allowance for credit losses is established for each collateral-dependent loan with a carrying balance greater than the collateral’s fair value, less estimated selling costs. In most cases, the Company records a partial charge-off to reduce the loan’s carrying value to the collateral’s fair value less estimated selling costs. At each fiscal quarter end, if a loan is designated as collateral-dependent 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 and evaluated for charge offs. The Company believes there have been no significant time lapses resulting from this process.

At December 31, 2020, there were 169 impaired loans totaling $86.0 million, of which 135 loans totaling $39.6 million were TDRs. Included in this total were 112 TDRs related to 110 borrowers totaling $23.1 million that were performing in accordance with their restructured terms and which continued to accrue interest at December 31, 2020. At December 31, 2019,

there were 158 impaired loans totaling $70.6 million, of which 147 loans totaling $48.3 million were TDRs. Included in this total were 133 TDRs related to 128 borrowers totaling $42.7 million that were performing in accordance with their restructured terms and which continued to accrue interest at December 31, 2019.

At December 31, 2020 and December 31, 2019, the Company had $26.3 million and $20.4 million of collateral-dependent impaired loans, respectively. The collateral-dependent impaired loans at December 31, 2020 consisted of $13.4 million in residential real estate loans, $12.8 million in commercial loans and $9,000 in consumer loans. The collateral for these impaired loans was primarily real estate.

The activity in the allowance for credit losses for the years ended December 31, 2020, 2019 and 2018 is as follows (in thousands):


	Years Ended December 31,
	2020		2019	2018
Balance at beginning of period	$	55,525	55,562	60,195
Provision charged to operations	29,712		13,100	23,700
Increase due to the initial adoption of CECL	7,920		—	—
Initial allowance related to PCD loans	13,586		—	—
Recoveries of loans previously charged off	2,636		1,895	1,685
Loans charged off	(7,913)		(15,032)	(30,018)
Balance at end of period	$	101,466	55,525	55,562

The activity in the allowance for credit losses by portfolio segment for the years ended December 31, 2020 and 2019 are as follows (in thousands):


	For the Year Ended December 31, 2020
	Mortgage loans		Commercial loans	Consumer loans	Total Portfolio Segments
Balance at beginning of period	$	25,511	28,263	1,751	55,525
Provision charged to operations	18,945		10,199	568	29,712
Increase (decrease) due to the initial adoption of CECL	14,188		(9,974)	3,706	7,920
Initial allowance related to PCD loans	11,984		1,582	20	13,586
Recoveries of loans previously charged off	396		1,776	464	2,636
Loans charged off	(2,717)		(4,762)	(434)	(7,913)
Balance at end of period	$	68,307	27,084	6,075	101,466


	For the Year Ended December 31, 2019
	Mortgage loans		Commercial loans	Consumer loans	Total Portfolio Segments
Balance at beginning of period	$	27,678	25,693	2,191	55,562
Provision charged to operations	(2,323)		15,928	(505)	13,100
Recoveries of loans previously charged off	422		665	808	1,895
Loans charged off	(266)		(14,023)	(743)	(15,032)
Balance at end of period	$	25,511	28,263	1,751	55,525

As a result of the January 1, 2020 adoption of CECL, the Company recorded a $7.9 million increase to the allowance for credit losses on loans. For the year ended December 31, 2020, the Company recorded a $29.7 million provision for credit losses on loans. The increase in the provision for credit losses for the year ended December 31, 2020 reflects management’s best estimate of projected losses over the life of loans in the portfolio in accordance with the CECL approach, given the economic

outlook and forecast related to the COVID-19 pandemic, as well as the impact of unprecedented fiscal, monetary and regulatory interventions. The largest increase in the provision for credit losses on loans for the year ended December 31, 2020 was in the commercial real estate portfolio.

The following table illustrates the impact of the January 1, 2020 adoption of CECL on the allowance for credit losses related to the loan portfolio (in thousands):


	January 1, 2020
	As reported under CECL		Prior to CECL	Impact of CECL adoption
Loans
Residential	$	8,950	3,414	5,536
Commercial	17,118		12,831	4,287
Multi-family	9,519		3,374	6,145
Construction	4,152		5,892	(1,740)
Total mortgage loans	39,739		25,511	14,228
Commercial loans	18,254		28,263	(10,009)
Consumer loans	5,452		1,751	3,701
Allowance for credit losses on loans	$	63,445	55,525	7,920

The following tables summarize loans receivable by portfolio segment and impairment method (in thousands):


	At December 31, 2020
	Mortgage loans		Commercial loans	Consumer loans	Total Portfolio Segments
Individually evaluated for impairment	$	48,783	35,832	1,431	86,046
Collectively evaluated for impairment	6,731,039		2,531,638	491,135	9,753,812
Total gross loans	$	6,779,822	2,567,470	492,566	9,839,858


	At December 31, 2019
	Mortgage loans		Commercial loans	Consumer loans	Total Portfolio Segments
Individually evaluated for impairment	$	39,910	28,357	2,374	70,641
Collectively evaluated for impairment	5,271,535		1,606,402	388,986	7,266,923
Total gross loans	$	5,311,445	1,634,759	391,360	7,337,564

The allowance for credit losses is summarized by portfolio segment and impairment classification as follows (in thousands):


	At December 31, 2020
	Mortgage loans		Commercial loans	Consumer loans	Total Portfolio Segments
Individually evaluated for impairment	$	4,220	4,715	39	8,974
Collectively evaluated for impairment	64,087		22,369	6,036	92,492
Total allowance for credit losses	$	68,307	27,084	6,075	101,466


	At December 31, 2019
	Mortgage loans		Commercial loans	Consumer loans	Total Portfolio Segments
Individually evaluated for impairment	$	1,580	3,462	25	5,067
Collectively evaluated for impairment	23,931		24,801	1,726	50,458
Total allowance for credit losses	$	25,511	28,263	1,751	55,525

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, management 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.

The following tables present the number of loans modified as TDRs during the years ended December 31, 2020 and 2019 and their balances immediately prior to the modification date and post-modification as of December 31, 2020 and 2019.


	Year Ended December 31, 2020
Troubled Debt Restructurings	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
	($ in thousands)
Mortgage loans:
Residential	2	$	434	360


Total mortgage loans	2	434		360
Commercial loans	4	2,715		2,646

Total restructured loans	6	$	3,149	3,006


	Year Ended December 31, 2019
Troubled Debt Restructurings	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
		($ in thousands)
Mortgage loans:
Residential	3	$	1,617	1,584
Commercial	1	$	14,010	14,010
Total mortgage loans	4	15,627		15,594
Commercial loans	6	1,996		1,888
Consumer loans	4	421		402
Total restructured loans	14	$	18,044	17,884

All TDRs are impaired loans, which are individually evaluated for impairment, as previously discussed. Estimated collateral values of collateral dependent impaired loans modified during the years ended December 31, 2020 and 2019 exceeded the carrying amounts of such loans. During the year ended December 31, 2020, there were $7.3 million of charge-offs recorded on collateral dependent impaired loans. There were $11.6 million of charge-offs recorded on collateral dependent impaired loans for the year ended December 31, 2019. The allowance for credit losses associated with the TDRs presented in the preceding tables totaled $362,000 and $177,130 at December 31, 2020 and 2019, respectively, and were included in the

allowance for credit losses for loans individually evaluated for impairment. (See page 109 for further discussion related to COVID-19 loan modifications)

The TDRs presented in the preceding tables had a weighted average modified interest rate of approximately 5.43% and 3.83%, compared to a yield of 5.44% and 3.82% prior to modification for the years ended December 31, 2020 and 2019, respectively.

The following table presents loans modified as TDRs within the previous 12 months from December 31, 2020 and 2019, and for which there was a payment default (90 days or more past due) at the quarter ended December 31, 2020 and 2019.


	December 31, 2020			December 31, 2019
Troubled Debt Restructurings Subsequently Defaulted	Number of Loans	Outstanding Recorded Investment		Number of Loans	Outstanding Recorded Investment
		($ in thousands)			($ in thousands)
Mortgage loans:
Residential	—	$	—	1	$	578



Total mortgage loans	—	—		1	578


Total restructured loans	—	$	—	1	$	578

No loans which were modified as TDRs within the 12 month period ending December 31, 2020 had a payment default (90 days or more past due). There was one payment default (90 days or more past due) for loans modified as TDRs within the 12 month period ending December 31, 2019.

As allowed by CECL, the Company elected to maintain pools of loans accounted for under ASC 310-30. At December 31, 2019, purchased credit impaired (“PCI”) loans totaled $746,000. In accordance with the CECL standard, management did not reassess whether modifications of individually acquired financial assets accounted for in pools were TDRs as of the date of adoption. Loans considered to be PCI prior to January 1, 2020 were converted to PCD loans on that date. Loans acquired by the Company after January 1, 2020, that experience more-than-insignificant deterioration in credit quality after origination are classified as PCD loans.

The table below is a summary of the PCD loans accounted for in accordance with ASC 310-26 that were acquired in the SB One acquisition at the July 31, 2020 closing date (in thousands):


Gross amortized cost basis at July 31, 2020	$	315,784
Interest component of expected cash flows (accretable difference)	(7,988)
Fair value of PCD loans	307,796
Allowance for credit losses on PCD loans	(13,586)
Net PCD loans	$	294,210

The following table presents loans individually evaluated for impairment by class and loan category (in thousands):


	At December 31, 2020						At December 31, 2019
	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	$	13,981	11,380	—	11,587	511	$	13,478	10,739	—	10,910	533
Commercial	17,414		17,414	—	16,026	60	—		—	—	—	—
Multi-family	—		—	—	—	—	—		—	—	—	—
Construction	—		—	—	—	—	—		—	—	—	—
Total	31,395		28,794	—	27,613	571	13,478		10,739	—	10,910	533
Commercial loans	15,895		14,009	—	12,791	46	3,927		3,696	—	4,015	17
Consumer loans	1,382		880	—	7	50	2,086		1,517	—	1,491	86
Total loans	$	48,672	43,683	—	40,411	667	$	19,491	15,952	—	16,416	636
Loans with an allowance recorded
Mortgage loans:
Residential	$	7,950	7,506	806	7,604	307	$	10,860	10,326	829	10,454	428
Commercial	14,993		12,483	3414	123	570	18,845		18,845	751	18,862	569
Multi-family	—		—	—	—	—	—		—	—	—	—
Construction	—		—	—	—	—	—		—	—	—	—
Total	22,943		19,989	4,220	7,727	877	29,705		29,171	1,580	29,316	997
Commercial loans	24,947		21,823	4,715	18,620	311	27,762		24,661	3462	27,527	444
Consumer loans	565		551	39	5	20	868		857	25	878	46
Total loans	$	48,455	42,363	8,974	26,352	1,208	$	58,335	54,689	5,067	57,721	1,487
Total
Mortgage loans:
Residential	$	21,931	18,886	806	19,191	818	$	24,338	21,065	829	21,364	961
Commercial	32,407		29,897	3,414	16,149	630	18,845		18,845	751	18,862	569
Multi-family	—		—	—	—	—	—		—	—	—	—
Construction	—		—	—	—	—	—		—	—	—	—
Total	54,338		48,783	4,220	35,340	1,448	43,183		39,910	1,580	40,226	1,530
Commercial loans	40,842		35,832	4,715	31,411	357	31,689		28,357	3462	31,542	461
Consumer loans	1,947		1,431	39	12	70	2,954		2,374	25	2,369	132
Total loans	$	97,127	86,046	8,974	66,763	1,875	$	77,826	70,641	5,067	74,137	2,123

At December 31, 2020, impaired loans consisted of 169 residential, commercial and commercial mortgage loans totaling $86.0 million, of which 55 loans totaling $61.4 million were included in nonaccrual loans. At December 31, 2019, impaired loans consisted of 158 residential, commercial and commercial mortgage loans totaling $70.6 million, of which 25 loans totaling $27.9 million were included in nonaccrual loans. Specific allocations of the allowance for credit losses attributable to impaired loans totaled $9.0 million and $5.1 million at December 31, 2020 and 2019, respectively. At December 31, 2020 and 2019, impaired loans for which there was no related allowance for credit losses totaled $43.7 million and $16.0 million, respectively. The average balances of impaired loans during the years ended December 31, 2020 and 2019 were $66.8 million and $74.1 million, respectively.

In the normal course of conducting its business, the Bank extends credit to meet the financing needs of its customers through commitments. Commitments and contingent liabilities, such as commitments to extend credit (including loan commitments of $1.99 billion and $1.26 billion at December 31, 2020 and 2019, respectively, and undisbursed home equity and personal credit lines of $241.2 million and $212.4 million, at December 31, 2020 and 2019, respectively, are not reflected in the accompanying consolidated financial statements. These instruments involve elements of credit and interest rate risk in excess of the amount recognized in the consolidated financial statements. The Bank uses the same credit policies and collateral requirements in making commitments and conditional obligations as it does for on-balance sheet loans. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since the commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements.

The Bank evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank upon extension of credit, is based on management’s credit evaluation of the borrower.

The Bank grants residential real estate loans on single- and multi-family dwellings to borrowers primarily in New Jersey. Its borrowers’ abilities to repay their obligations are dependent upon various factors, including the borrowers’ income and net worth, cash flows generated by the underlying collateral, value of the underlying collateral, and priority of the Bank’s lien on the property. Such factors are dependent upon various economic conditions and individual circumstances beyond the Bank’s control; the Bank is therefore subject to risk of loss. The Bank believes that its lending policies and procedures adequately minimize the potential exposure to such risks and that adequate provisions for loan losses are provided for all known and inherent risks. Collateral and/or guarantees are required for virtually all loans.

Management 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.

In response to the COVID-19 pandemic and its adverse economic impact on both our commercial and retail borrowers, the Company implemented a modification program to defer principal or principal and interest payments for borrowers directly impacted by the pandemic and who were not more than 30 days past due as of December 31, 2019, all in accordance with the Coronavirus Aid, Relief, and Economic Security ("CARES") Act.

In addition, the Company participated in the Paycheck Protection Program (“PPP”) through the United States Department of the Treasury and Small Business Administration ("SBA"). As of December 31, 2020, the Company secured 1,287 PPP loans for its customers totaling $473.2 million. The PPP loans are fully guaranteed by the SBA and may be eligible for forgiveness by the SBA to the extent that the proceeds are used to cover eligible payroll costs, interest costs, rent, and utility costs over a period of up to 24 weeks after the loan was made as long as certain conditions are met regarding employee retention and compensation levels. PPP loans deemed eligible for forgiveness by the SBA will be repaid by the SBA to the Company. PPP loans are included in the commercial loan portfolio.

The following table summarizes the Company's gross loans held for investment by year of origination and internally assigned credit grades (in thousands):


	At December 31, 2020
Total portfolio	Residential		Commercial mortgage	Multi-family	Construction	Total mortgages	Commercial	Consumer	Total Loans (1)
Special mention	$	2,882	124,631	29,781	24,376	181,670	157,080	1,867	340,617
Substandard	26,651		98,313	1,568	4,924	131,456	127,092	6,746	265,294
Doubtful	—		—	—	—	—	52	—	52
Loss	—		—	—	—	—	—	—	—
Total criticized and classified	29,533		222,944	31,349	29,300	313,126	284,224	8,613	605,963
Pass/Watch	1,265,169		3,235,722	1,453,166	512,639	6,466,696	2,283,246	483,953	9,233,895
Total	$	1,294,702	3,458,666	1,484,515	541,939	6,779,822	2,567,470	492,566	9,839,858

2020
Special mention	$	—	—	—	1,991	1,991	1,474	—	3,465
Substandard	164		—	—	—	164	726	25	915
Doubtful	—		—	—	—	—	—	—	—
Loss	—		—	—	—	—	—	—	—


Total criticized and classified	164		—	—	1,991	2,155	2,200	25	4,380
Pass/Watch	271,858		653,276	293,188	93,124	1,311,446	785,665	62,716	2,159,827
Total gross loans	$	272,022	653,276	293,188	95,115	1,313,601	787,865	62,741	2,164,207

2019
Special mention	$	—	30,313	682	14,508	45,503	7,080	3	52,586
Substandard	3,375		1,905	—	—	5,280	9,320	365	14,965
Doubtful	—		—	—	—	—	—	—	—
Loss	—		—	—	—	—	—	—	—
Total criticized and classified	3,375		32,218	682	14,508	50,783	16,400	368	67,551
Pass/Watch	152,117		612,694	180,316	236,021	1,181,148	275,410	69,703	1,526,261
Total gross loans	$	155,492	644,912	180,998	250,529	1,231,931	291,810	70,071	1,593,812

2018
Special mention	$	—	33,446	20,125	7,877	61,448	6,544	276	68,268
Substandard	1,669		3,687	—	4,309	9,665	6,066	110	15,841
Doubtful	—		—	—	—	—	—	—	—
Loss	—		—	—	—	—	—	—	—
Total criticized and classified	1,669		37,133	20,125	12,186	71,113	12,610	386	84,109
Pass/Watch	93,588		396,487	188,892	138,190	817,157	233,246	64,151	1,114,554
Total gross loans	$	95,257	433,620	209,017	150,376	888,270	245,856	64,537	1,198,663

2017
Special mention	$	—	22,838	3,117	—	25,955	27,251	70	53,276
Substandard	2,221		21,095	—	615	23,931	16,159	—	40,090
Doubtful	—		—	—	—	—	—	—	—
Loss	—		—	—	—	—	—	—	—
Total criticized and classified	2,221		43,933	3,117	615	49,886	43,410	70	93,366
Pass/Watch	101,943		436,963	170,268	43,224	752,398	200,484	55,768	1,008,650
Total gross loans	$	104,164	480,896	173,385	43,839	802,284	243,894	55,838	1,102,016

2016 and prior
Special mention	$	2,882	38,034	5,857	—	46,773	114,731	1,518	163,022
Substandard	19,222		71,626	1,568	—	92,416	94,821	6,246	193,483
Doubtful	—		—	—	—	—	52	—	52
Loss	—		—	—	—	—	—	—	—
Total criticized and classified	22,104		109,660	7,425	—	139,189	209,604	7,764	356,557
Pass/Watch	667,767		1,245,962	627,927	2,080	2,543,736	998,045	239,379	3,781,160
Total gross loans	$	689,871	1,355,622	635,352	2,080	2,682,925	1,207,649	247,143	4,137,717

	At December 31, 2019
	Residential		Commercial mortgage	Multi-family	Construction	Total mortgages	Commercial	Consumer	Total loans
Special mention	$	2,402	46,758	—	—	49,160	79,248	286	128,694
Substandard	10,204		13,458	—	6,181	29,843	57,015	1,668	88,526
Doubtful	—		—	—	—	—	836	—	836
Loss	—		—	—	—	—	—	—	—


Total criticized and classified	12,606		60,216	—	6,181	79,003	137,099	1,954	218,056
Pass/Watch	1,065,083		2,518,177	1,225,551	423,631	5,232,442	1,497,660	389,406	7,119,508
Total	$	1,077,689	2,578,393	1,225,551	429,812	5,311,445	1,634,759	391,360	7,337,564

(1) Contained within criticized and classified loans at December 31, 2020 are loans that were granted payment deferrals related to COVID-19 totaling $207.4 million.