Portfolio Loans | Portfolio Loans The composition of our total portfolio loans, which excludes loans held for sale, was the following for the periods presented below: March 31, 2019 December 31, 2018 Originated loans Acquired loans Total Originated loans Acquired loans Total Commercial: C&I: Traditional C&I $ 2,386,984 $ 70,227 $ 2,457,211 $ 2,321,131 $ 75,051 $ 2,396,182 Asset-based lending 793,598 291,974 1,085,572 792,935 — 792,935 Payroll finance 204,610 — 204,610 227,452 — 227,452 Warehouse lending 1,022,811 — 1,022,811 782,646 — 782,646 Factored receivables 263,033 — 263,033 258,383 — 258,383 Equipment financing 930,883 404,834 1,335,717 913,751 301,291 1,215,042 Public sector finance 896,233 — 896,233 860,746 — 860,746 Total C&I 6,498,152 767,035 7,265,187 6,157,044 376,342 6,533,386 Commercial mortgage: CRE 4,391,136 431,785 4,822,921 4,154,956 487,461 4,642,417 Multi-family 1,554,913 3,138,179 4,693,092 1,527,619 3,236,505 4,764,124 ADC 290,875 — 290,875 267,754 — 267,754 Total commercial mortgage 6,236,924 3,569,964 9,806,888 5,950,329 3,723,966 9,674,295 Total commercial 12,735,076 4,336,999 17,072,075 12,107,373 4,100,308 16,207,681 Residential mortgage 571,594 1,977,690 2,549,284 621,471 2,083,755 2,705,226 Consumer 146,755 140,359 287,114 153,811 151,812 305,623 Total portfolio loans 13,453,425 6,455,048 19,908,473 12,882,655 6,335,875 19,218,530 Allowance for loan losses (98,960 ) — (98,960 ) (95,677 ) — (95,677 ) Total portfolio loans, net $ 13,354,465 $ 6,455,048 $ 19,809,513 $ 12,786,978 $ 6,335,875 $ 19,122,853 Acquired loans at March 31, 2019 and December 31, 2018 include loans that were acquired in the following transactions: the commercial loan portfolio acquired from Woodforest National Bank; the Advantage Funding Acquisition; the merger with Astoria Financial Corporation (“Astoria”) (the “Astoria Merger”); the merger with Hudson Valley Holding Corp. (the “HVB Merger”), and the the merger between Provident New York Bancorp and legacy Sterling Bancorp (the “Provident Merger”). Under our credit administration and accounting policies, once a loan relationship reaches maturity and is re-underwritten, the loan is no longer considered an acquired loan and is included in originated loans. In addition, acquired performing loans that were subsequently subject to a credit evaluation, such as after designation as criticized or classified or placed on non-accrual since the acquisition date, are also included in originated loans. Consistent with our credit and accounting policies discussed above, at March 31, 2019 , there were $1,237,567 of loans with an allowance for loan loss reserve of $9,448 that were originally considered acquired loans but have since migrated to the originated loans portfolio as they have reached maturity, were re-underwritten, have been designated as criticized or classified or have been placed on non-accrual since the acquisition date. At December 31, 2018 , there were $1,365,682 of loans with an allowance for loan loss reserve of $9,607 that were originally considered acquired loans but have since migrated to the originated loans portfolio as they have reached maturity, were re-underwritten, have been designated criticized or classified or have been placed on non-accrual since the acquisition date. Total portfolio loans include net deferred loan origination fees of $9,453 and $5,581 at March 31, 2019 and December 31, 2018 , respectively. Portfolio loans subject to purchase accounting adjustments are shown net of discounts on acquired loans, which were $115,290 at March 31, 2019 and $117,222 at December 31, 2018 . At March 31, 2019 and December 31, 2018 , the Bank pledged residential mortgage and commercial real estate loans of $7,556,051 and $8,526,247 , respectively, to the FHLB as collateral for certain borrowing arrangements. See Note 8. “Borrowings”. The following tables set forth the amounts and status of our loans, troubled debt restructurings (“TDRs”) and non-performing loans at March 31, 2019 and December 31, 2018 : Originated loans: March 31, 2019 Current 30-59 60-89 90+ Non- Total Traditional C&I $ 2,344,556 $ 3,541 $ 36 $ 2,084 $ 36,767 $ 2,386,984 Asset-based lending 791,261 — — — 2,337 793,598 Payroll finance 203,915 — — — 695 204,610 Warehouse lending 1,022,811 — — — — 1,022,811 Factored receivables 263,033 — — — — 263,033 Equipment financing 901,695 8,772 5,172 129 15,115 930,883 Public sector finance 896,233 — — — — 896,233 CRE 4,356,172 3,711 4,785 — 26,468 4,391,136 Multi-family 1,550,317 141 — — 4,455 1,554,913 ADC 287,088 — 2,563 790 434 290,875 Residential mortgage 540,028 466 322 — 30,778 571,594 Consumer 136,782 501 410 214 8,848 146,755 Total loans $ 13,293,891 $ 17,132 $ 13,288 $ 3,217 $ 125,897 $ 13,453,425 Total TDRs included above $ 29,320 $ — $ 57 $ 214 $ 32,709 $ 62,300 Non-performing loans: Loans 90+ days past due and still accruing $ 3,217 Non-accrual loans 125,897 Total originated non-performing loans $ 129,114 December 31, 2018 Current 30-59 60-89 90+ Non- Total Traditional C&I $ 2,266,947 $ 5,747 $ 6,139 $ — $ 42,298 $ 2,321,131 Asset-based lending 789,654 — — — 3,281 792,935 Payroll finance 226,571 — — — 881 227,452 Warehouse lending 782,646 — — — — 782,646 Factored receivables 258,383 — — — — 258,383 Equipment financing 879,468 20,466 1,587 9 12,221 913,751 Public sector finance 860,746 — — — — 860,746 CRE 4,118,134 8,054 — 799 27,969 4,154,956 Multi-family 1,524,914 1,014 — — 1,691 1,527,619 ADC 267,090 230 — 434 — 267,754 Residential mortgage 592,563 1,934 897 264 25,813 621,471 Consumer 143,510 1,720 1,232 271 7,078 153,811 Total loans $ 12,710,626 $ 39,165 $ 9,855 $ 1,777 $ 121,232 $ 12,882,655 Total TDRs included above $ 34,892 $ 215 $ 181 $ 650 $ 38,947 $ 74,885 Non-performing loans: Loans 90+ days past due and still accruing $ 1,777 Non-accrual loans 121,232 Total originated non-performing loans $ 123,009 Acquired loans: March 31, 2019 Current 30-59 60-89 90+ Non- Total Traditional C&I $ 69,384 $ 243 $ 600 $ — $ — $ 70,227 Asset-based lending 291,974 — — — — 291,974 Equipment financing 399,407 5,427 — — — 404,834 CRE 417,344 4,602 6,174 — 3,665 431,785 Multi-family 3,135,508 1,340 — — 1,331 3,138,179 Residential mortgage 1,930,942 9,050 4,681 325 32,692 1,977,690 Consumer 135,348 1,014 709 127 3,161 140,359 Total loans $ 6,379,907 $ 21,676 $ 12,164 $ 452 $ 40,849 $ 6,455,048 Total TDRs included above $ — $ — $ — $ — $ — $ — Non-performing loans: Loans 90+ days past due and still accruing $ 452 Non-accrual loans 40,849 Total acquired non-performing loans $ 41,301 December 31, 2018 Current 30-59 days past due 60-89 days past due 90+ days past due Non- accrual Total Traditional C&I $ 69,690 $ 5,256 $ 105 $ — $ — $ 75,051 Equipment financing 288,447 8,659 3,998 187 — 301,291 CRE 481,583 377 — 458 5,043 487,461 Multi-family 3,233,779 1,736 — — 990 3,236,505 Residential mortgage 2,022,340 18,734 6,513 — 36,168 2,083,755 Consumer 146,042 1,852 951 — 2,967 151,812 Total loans $ 6,241,881 $ 36,614 $ 11,567 $ 645 $ 45,168 $ 6,335,875 Total TDRs included above $ — $ — $ — $ — $ — $ — Non-performing loans: Loans 90+ days past due and still accruing $ 645 Non-accrual loans 45,168 Total acquired non-performing loans $ 45,813 The following table provides additional analysis of our non-accrual loans at March 31, 2019 and December 31, 2018 : March 31, 2019 December 31, 2018 Recorded investment non-accrual loans Recorded investment PCI non-accrual loans Recorded investment total non-accrual loans Unpaid principal balance non-accrual loans Recorded investment non-accrual loans Recorded investment PCI non-accrual loans Recorded investment total non-accrual loans Unpaid principal balance non-accrual loans Traditional C&I $ 36,094 $ 673 $ 36,767 $ 49,637 $ 41,625 $ 673 $ 42,298 $ 50,651 Asset-based lending 2,337 — 2,337 2,822 3,281 — 3,281 3,859 Payroll finance 695 — 695 695 881 — 881 881 Equipment financing 15,115 — 15,115 20,064 12,221 — 12,221 15,744 Commercial real estate 22,305 7,828 30,133 36,539 23,675 9,337 33,012 39,440 Multi-family 3,574 2,212 5,786 6,033 482 2,199 2,681 2,920 ADC — 434 434 434 — — — — Residential mortgage 29,636 33,834 63,470 73,192 24,339 37,642 61,981 72,706 Consumer 8,031 3,978 12,009 14,114 6,576 3,469 10,045 12,170 Total $ 117,787 $ 48,959 $ 166,746 $ 203,530 $ 113,080 $ 53,320 $ 166,400 $ 198,371 There were no non-accrual warehouse lending, factored receivables or public sector finance loans at March 31, 2019 . There were no non-accrual ADC, warehouse lending, factored receivables or public sector finance loans at December 31, 2018 . When the ultimate collectability of the total principal of an impaired loan is in doubt and the loan is on non-accrual status, all payments are applied to principal under the cost recovery method. When the ultimate collectability of the total principal of an impaired loan is not in doubt and the loan is on non-accrual status, contractual interest is credited to interest income when received, under the cash basis method. At March 31, 2019 and December 31, 2018 , the recorded investment of residential mortgage loans that were in the process of foreclosure was $45,696 and $48,107 , respectively, which is included in non-accrual residential mortgage loans above. The following table sets forth loans evaluated for impairment by segment and the allowance evaluated by segment at March 31, 2019 : Loans evaluated by segment Allowance evaluated by segment Individually evaluated for impairment Collectively evaluated for impairment PCI loans (1) Total loans Individually evaluated for impairment Collectively evaluated for impairment Total allowance for loan losses Traditional C&I $ 40,807 $ 2,409,365 $ 7,039 $ 2,457,211 $ — $ 17,936 $ 17,936 Asset-based lending 2,307 1,077,672 5,593 1,085,572 — 8,573 8,573 Payroll finance — 204,610 — 204,610 — 2,100 2,100 Warehouse lending — 1,022,811 — 1,022,811 — 693 693 Factored receivables — 263,033 — 263,033 — 1,092 1,092 Equipment financing 3,722 1,324,338 7,657 1,335,717 — 14,326 14,326 Public sector finance — 896,233 — 896,233 — 1,134 1,134 Commercial real estate 29,346 4,770,876 22,699 4,822,921 — 33,087 33,087 Multi-family 4,373 4,682,367 6,352 4,693,092 — 8,659 8,659 ADC 789 290,086 — 290,875 — 1,912 1,912 Residential mortgage 4,629 2,460,592 84,063 2,549,284 — 6,925 6,925 Consumer 6,400 272,828 7,886 287,114 — 2,523 2,523 Total portfolio loans $ 92,373 $ 19,674,811 $ 141,289 $ 19,908,473 $ — $ 98,960 $ 98,960 (1) We acquired loans for which there was, at acquisition, both evidence of deterioration of credit quality since origination and the probability, at acquisition, that all contractually required payments would not be collected. These loans are classified as purchased credit impaired loans (“PCI loans”). The following table sets forth loans evaluated for impairment by segment and the allowance evaluated by segment at December 31, 2018 : Loans evaluated by segment Allowance evaluated by segment Individually evaluated for impairment Collectively evaluated for impairment PCI loans Total loans Individually evaluated for impairment Collectively evaluated for impairment Total allowance for loan losses Traditional C&I $ 48,735 $ 2,338,432 $ 9,015 $ 2,396,182 $ — $ 14,201 $ 14,201 Asset-based lending 3,281 789,654 — 792,935 — 7,979 7,979 Payroll finance — 227,452 — 227,452 — 2,738 2,738 Warehouse lending — 782,646 — 782,646 — 2,800 2,800 Factored receivables — 258,383 — 258,383 — 1,064 1,064 Equipment financing 3,577 1,211,465 — 1,215,042 — 12,450 12,450 Public sector finance — 860,746 — 860,746 — 1,739 1,739 Commercial real estate 33,284 4,581,911 27,222 4,642,417 — 32,285 32,285 Multi-family 1,662 4,754,912 7,550 4,764,124 — 8,355 8,355 ADC — 267,754 — 267,754 — 1,769 1,769 Residential mortgage 3,210 2,614,046 87,970 2,705,226 — 7,454 7,454 Consumer 7,249 290,336 8,038 305,623 — 2,843 2,843 Total portfolio loans $ 100,998 $ 18,977,737 $ 139,795 $ 19,218,530 $ — $ 95,677 $ 95,677 Management considers a loan to be impaired when, based on current information and events, it is determined that we will not be able to collect all amounts due according to the loan contract, including scheduled interest payments. Evaluation of impairment is generally treated the same across all classes of loans on a loan-by-loan basis. Generally loans of $750 or less are evaluated for impairment on a homogeneous pool basis. When management identifies a loan as impaired, the impairment is measured based on the present value of expected future cash flows, discounted at the loan’s effective interest rate, except when the sole remaining source of repayment of the loan is the operation or liquidation of the collateral. In these cases, management uses the current fair value of the collateral, less selling costs when foreclosure or liquidation is probable, instead of discounted cash flows. If management determines that the value of the impaired loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount), impairment is generally recognized through a charge-off to the allowance for loan losses. The following table presents the changes in the balance of the accretable yield discount for PCI loans for the three months ended March 31, 2019 and 2018 : For the three months ended March 31, 2019 2018 Balance at beginning of period $ 16,932 $ 45,582 Accretion of income (2,111 ) (3,029 ) Charge-offs (508 ) (342 ) Reclassification (to) from non-accretable difference 1,534 410 Other, adjustments — (15,072 ) Balance at end of period $ 15,847 $ 27,549 Income is not recognized on PCI loans unless we can reasonably estimate the cash flows that are expected to be collected over the life of the loan. The balance of PCI loans that were treated under the cost recovery method was $3,172 and $5,363 at March 31, 2019 and December 31, 2018 , respectively. The following table presents loans individually evaluated for impairment, excluding PCI loans, by segment of loans at March 31, 2019 and December 31, 2018 : March 31, 2019 December 31, 2018 Unpaid principal balance Recorded investment Unpaid principal balance Recorded investment Loans with no related allowance recorded: Traditional C&I $ 50,565 $ 40,807 $ 64,653 $ 48,735 Asset-based lending 2,792 2,307 3,859 3,281 Equipment financing 3,974 3,722 3,577 3,577 Commercial real estate 34,047 29,346 43,119 33,284 Multi-family 4,705 4,373 2,341 1,662 ADC 789 789 — — Residential mortgage 4,784 4,629 3,430 3,210 Consumer 6,400 6,400 7,249 7,249 Total $ 108,056 $ 92,373 $ 128,228 $ 100,998 At March 31, 2019 and December 31, 2018 , there were no payroll finance, warehouse lending, factored receivables or public sector finance loans that were individually evaluated for impairment. Our policy generally requires a charge-off of the difference between the present value of the cash flows or the net collateral value of the collateral securing the loan and our recorded investment. As a result, there were no impaired loans with an allowance recorded at March 31, 2019 or December 31, 2018 . The following table presents the average recorded investment and interest income recognized related to loans individually evaluated for impairment by segment for the three months ended March 31, 2019 and March 31, 2018 : For the three months ended March 31, 2019 March 31, 2018 QTD average recorded investment Interest income recognized Cash-basis interest income recognized QTD average recorded investment Interest income recognized Cash-basis interest income recognized Loans with no related allowance recorded: Traditional C&I $ 41,835 $ 49 $ — $ 39,928 $ 140 $ — Asset-based lending 1,864 — — — — — Equipment financing 2,590 — — 1,411 — — Commercial real estate 28,586 172 — 12,190 44 — Multi-family 3,224 16 — 2,001 16 — ADC 395 13 — 4,138 3 — Residential mortgage 2,502 — — 2,599 — — Consumer 5,191 — — 3,127 — — Total $ 86,187 $ 250 $ — $ 65,394 $ 203 $ — For the three months ended March 31, 2019 and 2018 , there were no payroll finance, warehouse lending, factored receivables or public sector finance loans that were impaired, and there was no cash-basis interest income recognized. Troubled Debt Restructurings (“TDRs”) The following tables set forth the amounts and past due status of our TDRs at March 31, 2019 and December 31, 2018 : March 31, 2019 Current loans 30-59 days past due 60-89 days past due 90+ days past due Non- accrual Total Traditional C&I $ 5,935 $ — $ — $ — $ 19,705 $ 25,640 Asset-based lending — — — — 1,294 1,294 Equipment financing 1,688 — — — 2,288 3,976 Commercial real estate 8,859 — — — 6,516 15,375 ADC — — — — 434 434 Residential mortgage 6,818 — — — 2,195 9,013 Consumer 6,020 — 57 214 277 6,568 Total $ 29,320 $ — $ 57 $ 214 $ 32,709 $ 62,300 There were no payroll finance, warehouse lending, factored receivables, public sector finance or multi-family loans that were TDRs for the period presented above. December 31, 2018 Current loans 30-59 days past due 60-89 days past due 90+ days past due Non- accrual Total Traditional C&I $ 9,011 $ — $ — $ — $ 25,672 $ 34,683 Asset-based lending — — — — 1,276 1,276 Equipment financing 1,905 — 9 — 2,367 4,281 Commercial real estate 11,071 — — — 7,112 18,183 ADC — — — 434 — 434 Residential mortgage 5,688 — 103 — 2,312 8,103 Consumer 7,217 215 69 216 208 7,925 Total $ 34,892 $ 215 $ 181 $ 650 $ 38,947 $ 74,885 There were no payroll finance, warehouse lending, factored receivables, public sector finance or multi-family loans that were TDRs for the period presented above. We did not have any outstanding commitments to lend additional amounts to customers with loans classified as TDRs as of March 31, 2019 or December 31, 2018 . The following table presents loans by segment modified as TDRs that occurred during the first three months of 2019 and 2018 : March 31, 2019 March 31, 2018 Recorded investment Recorded investment Number Pre- modification Post- modification Number Pre- modification Post- modification Traditional C&I — $ — $ — 1 $ 12,766 $ 12,766 Equipment financing 1 5,026 5,026 1 670 670 Residential mortgage 2 895 895 5 808 603 Total TDRs 3 $ 5,921 $ 5,921 7 $ 14,244 $ 14,039 There were no asset-based lending, payroll finance, warehouse lending, factored receivables, public sector finance, commercial real estate, multi-family or consumer loans modified as TDRs during the first three months of 2019 or 2018 . During the three months ended March 31, 2019 and 2018 , except for certain TDRs that are included in non-accrual loans, there were no TDRs that experienced a payment default within the twelve months following the modification. A payment default is defined as missing three consecutive monthly payments or being over 90 days past due on a scheduled payment. TDRs are formal loan modifications which consist mainly of an extension of the loan maturity date, converting a loan to interest only for some defined period of time, deferral of interest payments, waiver of certain covenants, or reducing collateral requirements or interest rates. TDRs during the periods presented above did not significantly impact the determination of the allowance for loan losses. |