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: June 30, 2019 December 31, 2018 Originated loans Acquired loans Total Originated loans Acquired loans Total Commercial: Commercial & Industrial (“C&I”): Traditional C&I $ 2,357,081 $ 62,533 $ 2,419,614 $ 2,321,131 $ 75,051 $ 2,396,182 Asset-based lending 854,618 278,180 1,132,798 792,935 — 792,935 Payroll finance 203,581 — 203,581 227,452 — 227,452 Warehouse lending 1,221,458 — 1,221,458 782,646 — 782,646 Factored receivables 254,786 — 254,786 258,383 — 258,383 Equipment financing 885,678 349,514 1,235,192 913,751 301,291 1,215,042 Public sector finance 1,047,405 — 1,047,405 860,746 — 860,746 Total C&I 6,824,607 690,227 7,514,834 6,157,044 376,342 6,533,386 Commercial mortgage: Commercial real estate (“CRE”) 4,614,943 421,277 5,036,220 4,154,956 487,461 4,642,417 Multi-family 1,713,243 2,964,574 4,677,817 1,527,619 3,236,505 4,764,124 Acquisition, development and construction (“ADC”) 338,973 — 338,973 267,754 — 267,754 Total commercial mortgage 6,667,159 3,385,851 10,053,010 5,950,329 3,723,966 9,674,295 Total commercial 13,491,766 4,076,078 17,567,844 12,107,373 4,100,308 16,207,681 Residential mortgage 569,637 1,966,030 2,535,667 621,471 2,083,755 2,705,226 Consumer 135,430 131,365 266,795 153,811 151,812 305,623 Total portfolio loans 14,196,833 6,173,473 20,370,306 12,882,655 6,335,875 19,218,530 Allowance for loan losses (104,664 ) — (104,664 ) (95,677 ) — (95,677 ) Total portfolio loans, net $ 14,092,169 $ 6,173,473 $ 20,265,642 $ 12,786,978 $ 6,335,875 $ 19,122,853 Acquired loans at June 30, 2019 and December 31, 2018 include loans that were acquired in the following transactions: the Woodforest Acquisition; 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, at June 30, 2019 , there were $1,076,642 of loans with an allowance for loan loss reserve of $8,326 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 as criticized or classified or have been placed on non-accrual since the acquisition date. Total portfolio loans include net deferred loan origination fees of $5,559 and $5,581 at June 30, 2019 and December 31, 2018 , respectively. Portfolio loans subject to purchase accounting adjustments are shown net of discounts on acquired loans, which were $94,597 at June 30, 2019 and $117,222 at December 31, 2018 . At June 30, 2019 and December 31, 2018 , the Bank pledged residential mortgage and commercial real estate loans of $7,567,738 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 June 30, 2019 and December 31, 2018 : Originated loans: June 30, 2019 Current 30-59 60-89 90+ Non- Total Traditional C&I $ 2,324,354 $ 1,068 $ 1,571 $ 106 $ 29,982 $ 2,357,081 Asset-based lending 826,042 — — — 28,576 854,618 Payroll finance 202,874 — — — 707 203,581 Warehouse lending 1,221,458 — — — — 1,221,458 Factored receivables 254,786 — — — — 254,786 Equipment financing 850,670 9,223 5,421 116 20,248 885,678 Public sector finance 1,047,405 — — — — 1,047,405 CRE 4,557,297 19,086 16,550 — 22,010 4,614,943 Multi-family 1,708,326 557 — — 4,360 1,713,243 ADC 337,112 668 — — 1,193 338,973 Residential mortgage 531,116 2,055 — — 36,466 569,637 Consumer 125,305 1,015 8 — 9,102 135,430 Total loans $ 13,986,745 $ 33,672 $ 23,550 $ 222 $ 152,644 $ 14,196,833 Total TDRs included above $ 28,536 $ 1,961 $ — $ — $ 22,624 $ 53,121 Non-performing loans: Loans 90+ days past due and still accruing $ 222 Non-accrual loans 152,644 Total originated non-performing loans $ 152,866 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: June 30, 2019 Current 30-59 60-89 90+ Non- Total Traditional C&I $ 62,107 $ 426 $ — $ — $ — $ 62,533 Asset-based lending 278,180 — — — — 278,180 Equipment financing 345,841 3,673 — — — 349,514 CRE 417,024 — 385 — 3,868 421,277 Multi-family 2,963,219 66 2 — 1,287 2,964,574 Residential mortgage 1,921,675 12,569 411 316 31,059 1,966,030 Consumer 126,504 1,610 — — 3,251 131,365 Total loans $ 6,114,550 $ 18,344 $ 798 $ 316 $ 39,465 $ 6,173,473 Total TDRs included above $ — $ — $ — $ — $ — $ — Non-performing loans: Loans 90+ days past due and still accruing $ 316 Non-accrual loans 39,465 Total acquired non-performing loans $ 39,781 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 June 30, 2019 and December 31, 2018 : June 30, 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 $ 29,309 $ 673 $ 29,982 $ 42,623 $ 41,625 $ 673 $ 42,298 $ 50,651 Asset-based lending 28,576 — 28,576 33,148 3,281 — 3,281 3,859 Payroll finance 707 — 707 707 881 — 881 881 Equipment financing 20,248 — 20,248 25,679 12,221 — 12,221 15,744 CRE 18,104 7,774 25,878 31,997 23,675 9,337 33,012 39,440 Multi-family 3,537 2,110 5,647 6,188 482 2,199 2,681 2,920 ADC 1,193 — 1,193 1,209 — — — — Residential mortgage 34,562 32,963 67,525 78,032 24,339 37,642 61,981 72,706 Consumer 7,892 4,461 12,353 14,441 6,576 3,469 10,045 12,170 Total $ 144,128 $ 47,981 $ 192,109 $ 234,024 $ 113,080 $ 53,320 $ 166,400 $ 198,371 There were no non-accrual warehouse lending, factored receivables or public sector finance loans at June 30, 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 June 30, 2019 and December 31, 2018 , the recorded investment of residential mortgage loans that were in the process of foreclosure was $42,374 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 June 30, 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 $ 32,090 $ 2,381,119 $ 6,405 $ 2,419,614 $ — $ 17,649 $ 17,649 Asset-based lending 37,096 1,083,448 12,254 1,132,798 2,000 11,905 13,905 Payroll finance — 203,581 — 203,581 — 1,391 1,391 Warehouse lending — 1,221,458 — 1,221,458 — 843 843 Factored receivables — 254,786 — 254,786 — 1,157 1,157 Equipment financing 6,580 1,226,044 2,568 1,235,192 — 14,284 14,284 Public sector finance — 1,047,405 — 1,047,405 — 1,594 1,594 CRE 23,866 4,990,048 22,306 5,036,220 — 34,846 34,846 Multi-family 4,340 4,667,133 6,344 4,677,817 — 9,360 9,360 ADC 753 338,220 — 338,973 — 2,272 2,272 Residential mortgage 6,575 2,449,818 79,274 2,535,667 — 7,109 7,109 Consumer 2,727 256,563 7,505 266,795 — 2,254 2,254 Total portfolio loans $ 114,027 $ 20,119,623 $ 136,656 $ 20,370,306 $ 2,000 $ 104,664 $ 106,664 (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 CRE 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 and six months ended June 30, 2019 and 2018 : For the three months ended June 30, For the six months ended June 30, 2019 2018 2019 2018 Balance at beginning of period $ 15,847 $ 27,549 $ 16,932 $ 45,582 Balances acquired in the Woodforest Acquisition 2,093 — 2,093 — Accretion of income (1,811 ) (895 ) (3,922 ) (3,924 ) Charge-offs (431 ) (2,285 ) (939 ) (2,627 ) Reclassification (to) from non-accretable difference 2,683 (2,658 ) 4,217 (2,248 ) Other, adjustments — — — (15,072 ) Balance at end of period $ 18,381 $ 21,711 $ 18,381 $ 21,711 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 $3,238 and $5,202 at June 30, 2019 and December 31, 2018 , respectively. The following table presents loans individually evaluated for impairment, excluding PCI loans, by segment of loans at June 30, 2019 and December 31, 2018 : June 30, 2019 December 31, 2018 Unpaid principal balance Recorded investment Unpaid principal balance Recorded investment Loans with no related allowance recorded: Traditional C&I $ 42,555 $ 32,090 $ 64,653 $ 48,735 Asset-based lending 28,576 28,576 3,859 3,281 Equipment financing 6,832 6,580 3,577 3,577 Commercial real estate 28,140 23,866 43,119 33,284 Multi-family 4,672 4,340 2,341 1,662 ADC 753 753 — — Residential mortgage 6,730 6,575 3,430 3,210 Consumer 2,727 2,727 7,249 7,249 Total $ 120,985 $ 105,507 $ 128,228 $ 100,998 At June 30, 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 December 31, 2018 . At June 30, 2019 , there was one asset-based lending loan with an unpaid principal balance of $11,617 and a recorded investment of $8,520 , which had a specific reserve of $2,000 . We are in the process of evaluating several collection strategies and resolution alternatives, and currently we have not determined the specific reserve amount to be a confirmed loss. 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 June 30, 2019 and June 30, 2018 : For the three months ended June 30, 2019 June 30, 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 $ 35,494 $ 136 $ — $ 34,642 $ 186 $ — Asset-based lending 14,935 — — 12,673 109 — Equipment financing 4,544 — — 1,189 — — CRE 22,535 88 — 19,744 182 — Multi-family 2,987 — — 1,808 22 — ADC 771 — — 3,251 — — Residential mortgage 4,290 — — 5,847 — — Consumer 2,727 — — 3,118 — — Total $ 88,283 $ 224 $ — $ 82,272 $ 499 $ — For the three months ended June 30, 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. For the three months ended June 30, 2019 , the average recorded balance of the asset-based lending loan with a specific reserve at June 30, 2019 was $8,435 , there was no interest income or cash-basis interest income recognized. The following table presents the average recorded investment and interest income recognized related to loans individually evaluated for impairment by segment for the six months ended June 30, 2019 and June 30, 2018 : For the six months ended June 30, 2019 June 30, 2018 YTD average recorded investment Interest income recognized Cash-basis interest income recognized YTD average recorded investment Interest income recognized Cash-basis interest income recognized Loans with no related allowance recorded: Traditional C&I $ 34,454 $ 150 $ — $ 34,277 $ 202 $ — Asset-based lending 10,382 — — 8,448 224 — Equipment financing 3,810 — — 1,092 — — CRE 22,149 260 — 15,378 215 — Multi-family 2,545 16 — 1,738 38 — ADC 514 13 — 3,348 — — Residential mortgage 3,153 — — 3,898 — — Consumer 2,317 — — 3,123 — — Total $ 79,324 $ 439 $ — $ 71,302 $ 679 $ — For the six months ended June 30, 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. For the six months ended June 30, 2019 , the average recorded balance of the asset-based lending loan with a specific reserve at June 30, 2019 was $8,463 , there was no interest income or cash-basis interest income recognized. Troubled Debt Restructurings (“TDRs”) The following tables set forth the amounts and past due status of our TDRs at June 30, 2019 and December 31, 2018 : June 30, 2019 Current loans 30-59 days past due 60-89 days past due 90+ days past due Non- accrual Total Traditional C&I $ 5,387 $ 449 $ — $ — $ 13,573 $ 19,409 Asset-based lending — — — — 1,294 1,294 Equipment financing 4,011 1,223 — — 1,321 6,555 CRE 8,790 — — — 4,251 13,041 ADC — — — — 434 434 Residential mortgage 7,817 189 — — 1,418 9,424 Consumer 2,531 100 — — 333 2,964 Total $ 28,536 $ 1,961 $ — $ — $ 22,624 $ 53,121 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 CRE 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 June 30, 2019 or December 31, 2018 . The following table presents loans by segment modified as TDRs that occurred during the first six months of 2019 and 2018 : June 30, 2019 June 30, 2018 Recorded investment Recorded investment Number Pre- modification Post- modification Number Pre- modification Post- modification Traditional C&I 1 $ 5,026 $ 5,026 1 $ 11,157 $ 10,028 Asset-based lending — — — 1 12,766 12,766 Equipment financing 5 2,806 2,806 1 670 670 Residential mortgage 3 1,274 1,274 8 1,260 943 Total TDRs 9 $ 9,106 $ 9,106 11 $ 25,853 $ 24,407 There were no payroll finance, warehouse lending, factored receivables, public sector finance, commercial real estate, multi-family or consumer loans modified as TDRs during the first six months of 2019 or 2018 . During the six months ended June 30, 2019 , there was one equipment finance loan designated as a TDR that experienced a payment default within the twelve months following the modification. During the six months ended June 30, 2018 , except for certain TDRs that are included in non-accrual loans, there were no |