Loans | Note 3 — Loans Loans Receivable Loans consisted of the following as of the dates indicated: March 31, 2020 December 31, 2019 (in thousands) Real estate loans: Commercial property Retail $ 818,045 869,302 Hospitality 884,511 922,288 Other (1) 1,420,824 1,358,432 Total commercial property loans 3,123,380 3,150,022 Construction 63,809 76,455 Residential property 379,116 402,028 Total real estate loans 3,566,305 3,628,505 Commercial and industrial loans 472,714 484,093 Leases receivable 492,527 483,879 Consumer loans (2) 12,090 13,670 Loans receivable 4,543,636 4,610,147 Allowance for credit losses (66,500 ) (61,408 ) Loans receivable, net $ 4,477,136 $ 4,548,739 ( 1) Includes, among other types, mixed-use, apartment, office, industrial, gas stations, faith-based facilities and warehouse; all (2) Consumer loans include home equity lines of credit of $7.5 million and $8.2 million as of March 31, 2020 and December 31, Accrued interest on loans was $10.0 Loans Held for Sale The following is the activity for SBA loans held for sale for the three months ended March 31, 2020 and 2019: Real Estate Commercial and Industrial Total (in thousands) March 31, 2020 Balance at beginning of period $ 2,943 $ 3,077 $ 6,020 Originations 6,494 5,703 12,197 Sales (9,432 ) (8,780 ) (18,212 ) Principal paydowns and amortization (5 ) — (5 ) Balance at end of period $ — $ — $ — March 31, 2019 Balance at beginning of period $ 5,194 $ 4,196 $ 9,390 Originations 9,064 4,159 13,223 Sales (7,756 ) (7,703 ) (15,459 ) Principal paydowns and amortization (2 ) (12 ) (14 ) Balance at end of period $ 6,500 $ 640 $ 7,140 Allowance for Credit Losses The Company’s estimate of the allowance for credit losses reflects losses expected over the remaining contractual life of the assets. The contractual term does not consider extensions, renewals or modifications unless the Company has identified an expected troubled debt restructuring. The allowance for credit losses as of March 31, 2020 was estimated using the current expected credit loss model. The primary reason for the increase in the allowance for credit losses is significant projected deterioration of the loss drivers that the Company forecasts to calculate expected losses and, to a much lesser extent, increases in qualitative loss factors. The Company used the discounted cash flow (DCF) method to estimate allowances for credit losses for the commercial property, construction, and residential real estate loan portfolios, the commercial and industrial loan portfolio, and the consumer loan portfolio. For all loan pools utilizing the DCF method, the Company utilizes and forecasts the national unemployment rate as the primary loss driver. The Company also utilizes and forecasts either the annualized average return rate from the National Council of Real Estate Investment Fiduciaries (NCREIF) Property Index for commercial real estate loans or the one-year percentage change in the S&P/Case-Shiller U.S National Home Price Index (NHPI) for residential real estate loans as a second loss driver depending on the nature of the underlying loan pool and how well that loss driver correlates to expected future losses. For all DCF models at March 31, 2020, the Company determined that four-quarters represents a reasonable and supportable forecast period and reverts back to a historical loss rate over twelve quarters on a straight-line basis. As of and for the quarter ended March 31, 2020, the Company leverages economic projections from the quarterly Federal Open Market Committee (FOMC) and the Federal Reserve Economic Database (FRED) to inform its loss driver forecasts over the four-quarter forecast period. For each of these loan segments, the Company applies an expected loss ratio based on the discounted cash flows adjusted as appropriate for qualitative factors. Qualitative loss factors are based on the Company's judgment of company, market, industry or business specific data, changes the in underlying loan composition of specific portfolios, trends relating to credit quality, delinquency, nonperforming and adversely rated loans, and reasonable and supportable forecasts of economic conditions. The Company used the Probability of Default/Loss Given Default (PD/LGD) method for the SBA portfolio to accommodate the unique nature of these loans. Although the PD/LGD methodology is an element of the DCF model, the stand-alone PD/LGD methodology minimizes complications related to the characteristics of SBA loans. A uniqueness of the SBA portfolio is that the U.S. Small Business Administration policy requires servicers to undertake all reasonable collection efforts before charging-off the loan. As a result, the recovery rate for SBA loans tend to be more volatile and not intuitively correlated to economic factors. The Company used a Weighted Average Remaining Maturity (WARM) method to estimate expected credit losses for equipment financing agreements or the equipment lease receivables portfolio. The Company applied an expected loss ratio based on internal historical losses adjusted as appropriate for qualitative factors. The Company's evaluation of market, industry or business specific data, changes in the underlying portfolio composition, trends relating to credit quality, delinquency, nonperforming and adversely rated leases, and reasonable and supportable forecasts of economic conditions inform the estimate of qualitative factors. Management believes the allowance for credit losses is appropriate to provide for estimated losses inherent in the loans receivable portfolio. However, the allowance is an estimate that is inherently uncertain and depends on the outcome of future events. Management’s methodologies for determining such estimates consists of measuring expected credit losses of financial assets on a collective (pool) basis when similar risk characteristic(s) exist. The Bank segments the loans primarily by loan types, considering that the same type of loans share considerable similar risk characteristics, including the collateral type, loan purpose, contract term, amortization and payment structure. Our lending is concentrated generally in real estate loans, commercial loans and leases and SBA loans to small and middle market businesses primarily in California, Texas, Illinois and New York. Further, our regulators, in reviewing our loans receivable portfolio may require us to increase our allowance for credit losses. The following table details the information on the allowance for credit losses by portfolio segment as of and for the three months ended March 31, 2020 and 2019: Real Estate Commercial and Industrial Leases Receivable Consumer Unallocated Total (in thousands) March 31, 2020 Balance at beginning of period $ 36,355 $ 16,206 $ 8,767 $ 80 $ — $ 61,408 Adjustment related to adoption of ASU 2016-13 13,972 (2,497 ) 5,902 55 — 17,433 Adjusted balance as of January 1, 2020 50,327 13,709 14,669 135 — 78,841 Less loans charged off 14,142 12,150 1,181 — — 27,473 Recoveries on loans receivable previously charged off (58 ) (84 ) (74 ) — — (216 ) Provision for credit losses 2,740 9,945 2,218 14 — 14,916 Ending balance $ 38,983 $ 11,588 $ 15,780 $ 149 $ — $ 66,500 Individually evaluated for impairment $ 78 $ 147 $ 1,671 $ 3 $ — $ 1,899 Collectively evaluated for impairment $ 38,905 $ 11,441 $ 14,109 $ 146 $ — $ 64,601 Loans receivable $ 3,566,305 $ 472,714 $ 492,527 $ 12,090 $ — $ 4,543,636 Individually evaluated for impairment $ 34,161 $ 5,444 $ 6,393 $ 1,298 $ — $ 47,296 Collectively evaluated for impairment $ 3,532,144 $ 467,270 $ 486,134 $ 10,792 $ — $ 4,496,340 March 31, 2019 Balance at beginning of period $ 18,384 $ 7,162 $ 6,303 $ 98 $ 27 $ 31,974 Less loans charged off 122 133 852 — — 1,107 Recoveries on loans receivable previously charged off (440 ) (382 ) (90 ) — — (912 ) Provision for credit losses (396 ) 1,300 39 (9 ) 183 1,117 Ending balance $ 18,306 $ 8,711 $ 5,580 $ 89 $ 210 $ 32,896 Individually evaluated for impairment $ — $ 3,269 $ 1,099 $ — $ — $ 4,368 Collectively evaluated for impairment $ 18,306 $ 5,442 $ 4,481 $ 89 $ 210 $ 28,528 Loans receivable $ 3,714,356 $ 422,502 $ 425,530 $ 13,232 $ — $ 4,575,620 Individually evaluated for impairment $ 14,015 $ 23,114 $ 4,783 $ 1,370 $ — $ 43,282 Collectively evaluated for impairment $ 3,700,341 $ 399,388 $ 420,747 $ 11,862 $ — $ 4,532,338 The table below illustrates the allowance for credit losses by portfolio segment as a percentage of the recorded total allowance for credit losses and as a percentage of the aggregate recorded investment of loans receivable. March 31, 2020 December 31, 2019 Allowance Total Allowance Total Amount Percentage Loans Percentage Amount Percentage Loans Percentage (in thousands) Real estate loans: Commercial property Retail $ 6,651 10.0 % $ 818,045 18.0 % $ 4,911 8.0 % $ 869,302 18.9 % Hospitality 12,499 18.8 % 884,511 19.5 % 6,686 10.9 % 922,288 20.0 % Other 15,664 23.6 % 1,420,824 31.3 % 8,060 13.1 % 1,358,432 29.4 % Total commercial property loans 34,814 52.4 % 3,123,380 68.7 % 19,657 32.0 % 3,150,022 68.3 % Construction 2,207 3.3 % 63,809 1.4 % 15,003 24.4 % 76,455 1.7 % Residential property 1,962 3.0 % 379,116 8.3 % 1,695 2.8 % 402,028 8.7 % Total real estate loans 38,983 58.7 % 3,566,305 78.5 % 36,355 59.2 % 3,628,505 78.7 % Commercial and industrial loans 11,588 17.4 % 472,714 10.4 % 16,206 26.4 % 484,093 10.5 % Leases receivable 15,780 23.7 % 492,527 10.8 % 8,767 14.3 % 483,879 10.5 % Consumer loans 149 0.2 % 12,090 0.3 % 80 0.1 % 13,670 0.3 % Total $ 66,500 100.0 % $ 4,543,636 100.0 % $ 61,408 100.0 % $ 4,610,147 100.0 % The following table represents the amortized cost basis of collateral-dependent loans by class of loans as of March 31, 2020, for which repayment is expected to be obtained through the sale of the underlying collateral and any collateral dependent loans that are still accruing but are considered impaired. Amortized Cost March 31, 2020 (in thousands) Real estate loans: Commercial property $ 17,600 Construction 13,228 Residential property 2,677 Total real estate loans 33,505 Commercial and industrial loans 596 Consumer loans 1,196 Total (1) $ 35,297 (1) All loans are secured by real estate, except for one commercial term loan secured by $525,000 in cash. Loan Quality Indicators As part of the on-going monitoring of the quality of our loans portfolio, we utilize an internal loan grading system to identify credit risk and assign an appropriate grade (from 0 to 8) for each loan in our portfolio. A third-party loan review is performed at least on an annual basis. Additional adjustments are made when determined to be necessary. The loan grade definitions are as follows: Pass and Pass-Watch: Pass and Pass-Watch loans, grades (0-4), are in compliance with the Bank’s credit policy and regulatory requirements, and do not exhibit any potential or defined weaknesses as defined under “Special Mention,” “Substandard” or “Doubtful.” This category is the strongest level of the Bank’s loan grading system. It consists of all performing loans with no identified credit weaknesses. It includes cash and stock/security secured loans or other investment grade loans. Special Mention: A Special Mention loan, grade (5), has potential weaknesses that deserve management’s close attention. If not corrected, these potential weaknesses may result in deterioration of the repayment of the debt and result in a Substandard classification. Loans that have significant actual, not potential, weaknesses are considered more severely classified. Substandard: A Substandard loan, grade (6), has a well-defined weakness that jeopardizes the liquidation of the debt. A loan graded Substandard is not protected by the sound worth and paying capacity of the borrower, or of the value and type of collateral pledged. With a Substandard loan, there is a distinct possibility that the Bank will sustain some loss if the weaknesses or deficiencies are not corrected. Doubtful: A Doubtful loan, grade (7), is one that has critical weaknesses that would make the collection or liquidation of the full amount due improbable. However, there may be pending events which may work to strengthen the loan, and therefore the amount or timing of a possible loss cannot be determined at the current time. Loss: A loan classified as Loss, grade (8), is considered uncollectible and of such little value that their continuance as active bank assets is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this asset even though partial recovery may be possible in the future. Loans classified as Loss will be charged off in a timely manner. Under regulatory guidance, loans graded special mention or worse are considered criticized loans, and loans graded substandard or worse are considered classified loans. The tables below provide a comparison as of March 31, 2020 and December 31, 2019 of the pass/pass-watch, special mention and classified loans, disaggregated by loan segment: Pass/Pass- Watch Special Mention Classified Total (in thousands) March 31, 2020 Real estate loans: Commercial property Retail $ 812,841 $ — $ 5,204 $ 818,045 Hospitality 880,567 — 3,944 884,511 Other 1,385,625 6,436 28,763 1,420,824 Total commercial property 3,079,033 6,436 37,911 3,123,380 Construction 38,617 — 25,192 63,809 Residential property 375,655 1,323 2,138 379,116 Total real estate loans 3,493,305 7,759 65,241 3,566,305 Commercial and industrial loans 444,331 12,496 15,887 472,714 Leases receivable 486,134 — 6,393 492,527 Consumer loans 10,696 690 704 12,090 Total loans receivable $ 4,434,466 $ 20,945 $ 88,225 $ 4,543,636 December 31, 2019 Real estate loans: Commercial property Retail $ 859,739 $ 2,835 $ 6,728 $ 869,302 Hospitality 915,834 939 5,515 922,288 Other 1,329,817 7,807 20,809 1,358,432 Total commercial property 3,105,390 11,580 33,052 3,150,022 Construction 36,956 1,613 37,886 76,455 Residential property 398,737 2,512 779 402,028 Total real estate loans 3,541,082 15,705 71,718 3,628,505 Commercial and industrial loans 458,184 10,222 15,687 484,093 Leases receivable 477,977 — 5,902 483,879 Consumer loans 12,247 705 718 13,670 Total loans receivable $ 4,489,491 $ 26,632 $ 94,025 $ 4,610,147 Loans by Vintage Year and Risk Rating Term Loans Amortized Cost Basis by Origination Year (1) 2020 2019 2018 2017 2016 Prior Revolving Loans Amortized Cost Basis Total (in thousands) March 31, 2020 Commercial property Risk Rating Pass / Pass Watch $ 182,595 $ 542,426 $ 566,021 $ 441,982 $ 537,348 $ 774,381 $ 34,280 $ 3,079,033 Special Mention — 3,120 465 2,350 89 412 — 6,436 Classified 14,668 — 3,009 712 4,185 15,337 — 37,911 Total commercial property 197,263 545,546 569,495 445,044 541,621 790,129 34,280 3,123,380 Construction Risk Rating Pass / Pass Watch 8,207 7,936 1,640 — 20,835 — — 38,617 Special Mention — — — — — — — — Classified — 11,964 13,228 — — — — 25,192 Total construction 8,207 19,900 14,867 — 20,835 — — 63,809 Residential property Risk Rating Pass / Pass Watch — 956 42,842 159,941 108,940 62,976 — 375,655 Special Mention — — — 540 — 784 — 1,323 Classified — — — 869 1,149 120 — 2,138 Total residential property — 956 42,842 161,350 110,090 63,879 — 379,116 Total real estate loans Risk Rating Pass / Pass Watch 190,802 551,318 610,502 601,924 667,124 837,356 34,280 3,493,305 Special Mention — 3,120 465 2,890 89 1,196 — 7,759 Classified 14,668 11,964 16,237 1,581 5,334 15,456 — 65,241 Total real estate loans 205,470 566,402 627,203 606,394 672,546 854,008 34,280 3,566,305 Commercial and industrial loans: Risk Rating Pass / Pass Watch 40,333 151,462 64,266 25,200 5,942 18,286 138,840 444,331 Special Mention 4,036 820 540 80 1,735 1,651 3,634 12,496 Classified 8,672 4,195 851 188 176 1,807 — 15,887 Total commercial and industrial loans 53,041 156,476 65,658 25,468 7,853 21,743 142,475 472,714 Leases receivable: Risk Rating Pass / Pass Watch 56,055 219,118 133,700 52,086 23,055 2,119 — 486,134 Special Mention — — — — — — — — Classified — 2,094 2,001 617 1,257 424 — 6,393 Total leases receivable 56,055 221,212 135,701 52,704 24,313 2,542 — 492,527 Consumer loans: Risk Rating Pass / Pass Watch — 27 19 102 10 2,802 7,737 10,696 Special Mention — — — — — 690 — 690 Classified — — 675 28 — — — 704 Total commercial term loans — 27 695 130 10 3,492 7,737 12,090 Total loans receivable: Risk Rating Pass / Pass Watch 287,190 921,925 808,488 679,312 696,132 860,562 180,857 4,434,466 Special Mention 4,036 3,940 1,005 2,970 1,824 3,536 3,634 20,945 Classified 23,340 18,253 19,764 2,415 6,766 17,687 — 88,225 Total loans receivable $ 314,566 $ 944,118 $ 829,256 $ 684,697 $ 704,722 $ 881,785 $ 184,492 $ 4,543,636 (1) Includes extensions, renewals, or modifications of credit contracts, which consist of a new credit decision. Loans by Vinta ge Year and Payment Performance Term Loans Amortized Cost Basis by Origination Year (1) 2020 2019 2018 2017 2016 Prior Revolving Loans Amortized Cost Basis Total (in thousands) March 31, 2020 Real estate loans: Commercial property Payment performance Performing $ 183,271 $ 545,546 $ 569,312 $ 445,044 $ 541,345 $ 786,514 $ 34,280 $ 3,105,314 Nonperforming 13,992 — 183 — 277 3,615 — 18,066 Total commercial property 197,263 545,546 569,495 445,044 541,621 790,129 34,280 3,123,380 Construction Payment performance Performing 8,207 19,900 1,640 — 20,835 — — $ 50,582 Nonperforming — — 13,228 — — — — 13,228 Total construction 8,207 19,900 14,867 — 20,835 — — 63,809 Residential property Payment performance Performing — 956 42,842 159,941 108,940 63,725 — 376,404 Nonperforming — — — 1,409 1,149 154 — 2,711 Total residential property — 956 42,842 161,350 110,090 63,879 — 379,116 Total real estate loans Payment performance Performing 191,478 566,402 613,793 604,986 671,121 850,239 34,280 3,532,299 Nonperforming 13,992 — 13,410 1,409 1,426 3,769 — 34,005 Total real estate loans 205,470 566,402 627,203 606,394 672,546 854,008 34,280 3,566,305 Commercial and industrial loans: Payment performance Performing 53,040 146,762 64,944 25,280 7,853 21,559 142,475 461,912 Nonperforming 0 9,714 714 188 — 185 — 10,802 Total commercial and industrial loans 53,041 156,476 65,658 25,468 7,853 21,743 142,475 472,714 Leases receivable: Payment performance Performing 56,055 219,021 133,566 52,074 23,032 2,062 — 485,811 Nonperforming — 2,191 2,135 629 1,280 480 — 6,716 Total leases receivable 56,055 221,212 135,701 52,704 24,313 2,542 — 492,527 Consumer loans: Payment performance Performing — 27 19 102 10 3,492 7,737 11,386 Nonperforming — — 675 28 — — — 704 Total commercial term loans — 27 695 130 10 3,492 7,737 12,090 Total loans receivable: Payment performance Performing 300,573 932,212 812,322 682,442 702,016 877,351 184,492 4,491,410 Nonperforming 13,992 11,906 16,934 2,255 2,706 4,434 — 52,226 Total loans receivable $ 314,566 $ 944,118 $ 829,256 $ 684,697 $ 704,722 $ 881,785 $ 184,492 $ 4,543,636 (1) Includes extensions, renewals, or modifications of credit contracts, which consist of a new credit decision. The following is an aging analysis of loans, disaggregated by loan class, as of the dates indicated: 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Current Total Accruing 90 Days or More Past Due (in thousands) March 31, 2020 Real estate loans: Commercial property Retail $ — $ — $ — $ — $ 818,045 $ 818,045 $ — Hospitality — — — — 884,511 884,511 — Other 708 1,418 1,101 3,227 1,417,597 1,420,824 — Total commercial property loans 708 1,418 1,101 3,227 3,120,153 3,123,380 — Construction — — — — 63,809 63,809 — Residential property 531 593 2,164 3,288 375,828 379,116 — Total real estate loans 1,239 2,011 3,265 6,515 3,559,790 3,566,306 — Commercial and industrial loans 349 318 9,484 10,151 462,563 472,714 5,520 Leases receivable 7,311 1,789 3,748 12,848 479,679 492,527 323 Consumer loans — 28 — 28 12,062 12,090 — Total loans receivable $ 8,899 $ 4,146 $ 16,497 $ 29,542 $ 4,514,094 $ 4,543,636 $ 5,843 December 31, 2019 Real estate loans: Commercial property Retail $ 6 $ 132 $ 111 $ 249 $ 869,053 $ 869,302 $ — Hospitality 907 — — 907 921,381 922,288 — Other 51 — 38 89 1,358,344 1,358,432 — Total commercial property loans 964 132 149 1,245 3,148,778 3,150,022 — Construction — — — — 76,455 76,455 — Residential property 540 1,627 309 2,477 399,551 402,028 — Total real estate loans 1,504 1,759 458 3,721 3,624,784 3,628,505 — Commercial and industrial loans 635 133 143 911 483,183 484,093 — Leases receivable 5,358 2,138 3,493 10,990 472,889 483,879 — Consumer loans — 30 — 30 13,639 13,670 — Total loans receivable $ 7,497 $ 4,060 $ 4,094 $ 15,652 $ 4,594,496 $ 4,610,147 $ — As of March 31, 2020, there were $5.8 million of loans that were 90 days or more past due and accruing interest. There were no such loans at December 31, 2019. Individually Evaluated Loans Prior to the adoption of ASU 2016-13, impaired loans were measured based on the present value of expected future cash flows discounted at the loan's effective interest rate or, as a practical expedient, at the loan's observable market price or the fair value of the collateral if the loan was collateral dependent, less estimated costs to sell. If the estimated value of the impaired loan was less than the recorded investment in the loan, we charged-off the deficiency against the allowance for credit losses or we established a specific allowance in the allowance for credit losses. Additionally, we excluded from the quarterly migration analysis impaired loans when determining the amount of the allowance for credit losses required for the period. We review, under ASU 2016-13, all loans on an individual basis when they do not share similar risk characteristics with loan pools. The following tables provide information on individually evaluated loans receivable as of March 31, 2020 and impaired loans receivable as of December 31, 2019 disaggregated by loan class, as of the dates indicated: Recorded Investment Unpaid Principal Balance With No Related Allowance Recorded With an Allowance Recorded Related Allowance (in thousands) March 31, 2020 Real estate loans: Commercial property Retail $ 156 $ 149 $ — $ 156 $ 1 Other 18,066 19,371 16,788 1,278 77 Total commercial property loans 18,222 19,520 16,788 1,434 78 Construction 13,228 28,000 13,228 — — Residential property 2,711 2,713 2,677 34 — Total real estate loans 34,161 50,233 32,693 1,468 78 Commercial and industrial loans 5,445 17,853 4,483 962 147 Leases receivable 6,393 6,472 855 5,538 1,671 Consumer loans 1,298 1,606 1,196 102 2 Total $ 47,297 $ 76,164 $ 39,227 $ 8,070 $ 1,898 December 31, 2019 Real estate loans: Commercial property Retail $ 434 $ 459 $ 111 $ 323 $ 19 Hospitality 244 400 22 223 24 Other 14,864 15,151 14,696 167 12 Total commercial property loans 15,542 16,010 14,829 713 55 Construction 27,201 28,000 — 27,201 13,973 Residential property 1,124 1,163 1,089 35 — Total real estate loans 43,867 45,173 15,918 27,949 14,028 Commercial and industrial loans 13,700 14,090 143 13,557 8,885 Leases receivable 5,902 5,909 1,112 4,790 2,863 Consumer loans 1,297 1,588 1,220 77 1 Total $ 64,766 $ 66,760 $ 18,393 $ 46,373 $ 25,778 Nonaccrual Loans and Nonperforming Assets The following table represents the amortized cost basis of loans on nonaccrual status and loans past due 90 days and still accruing as of March 31, 2020. March 31, 2020 Nonaccrual Loans Receivable With No Allowance for Credit Losses Nonaccrual Loans Receivable With Allowance for Credit Losses Loans Receivable Past Due 90 Days Still Accruing Total Nonperforming Loans Receivable (in thousands) Real estate loans: Commercial property loans 16,788 1,278 — 18,066 Construction loans 13,228 — — 13,228 Residential property loans 2,677 34 — 2,711 Total real estate loans 32,693 1,313 — 34,005 Commercial and industrial loans 4,484 798 5,520 10,802 Leases receivable 855 5,538 323 6,716 Consumer loans 675 28 — 703 Total nonperforming loans $ 38,707 $ 7,676 $ 5,843 $ 52,226 The following is a summary of interest foregone on non-accrual loans for the periods indicated: Three Months Ended March 31, 2020 2019 (in thousands) Interest income that would have been recognized had impaired loans performed in accordance with their original terms $ 1,595 $ 888 Less: Interest income recognized on impaired loans (122 ) (682 ) Interest foregone on impaired loans $ 1,473 $ 206 There were no commitments to lend additional funds to borrowers whose loans are included above. The following table details nonaccrual loans, disaggregated by loan class, as of the dates indicated: March 31, 2020 December 31, 2019 (in thousands) Real estate loans: Commercial property Retail $ — $ 277 Hospitality — 225 Other 18,066 14,864 Total commercial property loans 18,066 15,366 Construction 13,228 27,201 Residential property 2,711 1,124 Total real estate loans 34,005 43,691 Commercial and industrial loans 5,282 13,479 Leases receivable 6,393 5,902 Consumer loans 703 689 Total nonaccrual loans $ 46,383 $ 63,761 The following table details nonperforming assets as of the dates indicated: March 31, 2020 December 31, 2019 (in thousands) Nonaccrual loans $ 46,383 $ 63,761 Loans 90 days or more past due and still accruing 5,843 — Total nonperforming loans 52,226 63,761 Other real estate owned (“OREO”) 63 63 Total nonperforming assets $ 52,289 $ 63,824 OREO is included in prepaid expenses and other assets in the accompanying Consolidated Balance Sheets as of March 31, 2020 and December 31, 2019. Troubled Debt Restructurings As of March 31, 2020 and December 31, 2019, total TDRs were $30.2 million and $56.3 million, respectively. A debt restructuring is considered a TDR if we grant a concession that we would not have otherwise considered, to the borrower for economic or legal reasons related to the borrower’s financial difficulties. Loans are considered to be TDRs if they were restructured, such as reducing the amount of principal and interest due monthly, and/or allowing for interest only monthly payments for three months or more or other payment structure modifications. The following table details TDRs as of March 31, 2020 and December 31, 2019: Nonaccrual TDRs Accrual TDRs Deferral of Principal Deferral of Principal and/or Interest Reduction of Principal and/or Interest Extension of Maturity Total Deferral of Principal Deferral of Principal and/or Interest Reduction of Principal and/or Interest Extension of Maturity Total March 31, 2020 Real estate loans $ — $ 128 $ 13,748 $ 13,832 $ 27,708 $ — $ — $ — $ — $ — Commercial and industrial loans — 184 525 300 1,009 — — 63 101 164 Consumer loans 675 — — — 675 521 — 74 — 595 Total $ 675 $ 312 $ 14,273 $ 14,132 $ 29,392 $ 521 $ — $ 137 $ 101 $ 758 December 31, 2019 Real estate loans $ — $ 132 $ 27,740 $ 13,926 $ 41,798 $ — $ — $ — $ — $ — Commercial and industrial loans — 153 12,527 312 12,991 — 36 71 114 222 Consumer loans 689 — — — 689 531 — 77 — 608 Total $ 689 $ 285 $ 40,266 $ 14,238 $ 55,478 $ 531 $ 36 $ 148 $ 114 $ 830 The following table presents the number of loans by class modified as troubled debt restructurings that occurred during the three months ended March 31, 2020, and the year ended December 31, 2019, with their pre- and post-modification recorded amounts. Three months ended Twelve months ended March 31, 2020 December 31, 2019 Number of Loans Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment Number of Loans Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment (in thousands except for number of loans) Real estate loans — $ — $ — 5 $ 40,743 $ 41,798 Commercial and industrial loans — — — 2 12,779 12,562 Consumer loans — — — 1 549 531 Total — $ — $ — 8 $ 54,071 $ 54,891 All TDRs are individually analyzed using one of these three criteria: (1) the present value of expected future cash flows discounted at the loan’s effective interest rate; (2) the loan’s observable market price; or (3) the fair value of the collateral if the loan is collateral dependent. At March 31, 2020 and December 31, 2019, TDRs were subjected to specific impairment analysis. We determined impairment allowances of $98,000 and $22.7 million, respectively, related to these loans and such allowances were included in the allowance for credit losses. A loan is considered to be in payment default once it is 30 days contractually past due under the modified terms. During the three-month period ended March 31, 2020, one loan for $35,000 defaulted within the twelve-month period following modification. During the year ended December 31, 2019, one loan for $132,000 defaulted within the twelve-month period following modification. |