Loans | Note 3 — Loans Loans Receivable Loans consisted of the following as of the dates indicated: June 30, 2020 December 31, 2019 (in thousands) Real estate loans: Commercial property Retail $ 808,157 $ 869,302 Hospitality 882,812 922,288 Other (1) 1,504,916 1,358,432 Total commercial property loans 3,195,885 3,150,022 Construction 70,357 76,455 Residential property 354,064 402,028 Total real estate loans 3,620,306 3,628,505 Commercial and industrial loans 730,399 484,093 Leases receivable 462,811 483,879 Consumer loans (2) 12,126 13,670 Loans receivable 4,825,642 4,610,147 Allowance for credit losses (86,330 ) (61,408 ) Loans receivable, net $ 4,739,312 $ 4,548,739 ( 1) Includes, among other types, mixed-use, apartment, office, industrial, gas stations, faith-based facilities and warehouse; all other property types represent less than one percent of total loans receivable. (2) Consumer loans include home equity lines of credit of $7.6 million and $8.2 million as of June 30, 2020 and December 31, The CARES Act (the Coronavirus Aid, Relief, and Economic Security Act) was passed by Congress and signed into law by President Trump on March 27, 2020. Among other benefits, the CARES Act allows financial institutions to assist customers in dealing with financial hardship by (a) providing federal funding so that financial institutions can originate SBA loans to borrowers at a low interest rate under the Paycheck Protection Program (PPP loans) with eventual debt forgiveness should the borrower continue to meet certain criteria after the COVID-19 crisis has abated; and (b) allowing financial institutions to temporarily modify loan terms by deferring loan payments, loan fees, etc. on a short-term basis without considering them Troubled Debt Restructures. At June 30, 2020, there were $301.8 million of PPP loans included in commercial and industrial loans in the table above. In addition, at June 30, 2020, there were $1.4 billion of loans modified under Section 4013 of the CARES Act. Accrued interest on loans was $20.3 million and $10.0 million at June 30, 2020 and December 31, 2019, respectively. At June 30, 2020 and December 31, 2019, loans of $2.4 billion and $1.4 billion, respectively, were pledged to secure advances from the FHLB. Loans Held for Sale The following is the activity for SBA loans held for sale for the three months ended June 30, 2020 and 2019: Real Estate Commercial and Industrial Total (in thousands) June 30, 2020 Balance at beginning of period $ — $ — $ — Originations and transfers 12,661 5,281 17,942 Balance at end of period $ 12,661 $ 5,281 $ 17,942 June 30, 2019 Balance at beginning of period $ 6,500 $ 640 $ 7,140 Originations 6,650 7,650 14,300 Sales (10,474 ) (4,937 ) (15,411 ) Balance at end of period $ 2,676 $ 3,353 $ 6,029 The following is the activity for SBA loans held for sale for the six months ended June 30, 2020 and 2019: Real Estate Commercial and Industrial Total (in thousands) June 30, 2020 Balance at beginning of period $ 2,943 $ 3,077 $ 6,020 Originations and transfers 19,155 10,984 30,139 Sales (9,432 ) (8,780 ) (18,212 ) Principal payoffs and amortization (5 ) — (5 ) Balance at end of period $ 12,661 $ 5,281 $ 17,942 June 30, 2019 Balance at beginning of period $ 5,194 $ 4,196 $ 9,390 Originations 15,713 11,810 27,523 Sales (18,229 ) (12,641 ) (30,870 ) Principal payoffs and amortization (2 ) (12 ) (14 ) Balance at end of period $ 2,676 $ 3,353 $ 6,029 Allowance for Credit Losses The Company’s estimate of the allowance for credit losses at June 30, 2020 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. At June 30, 2020, the Company used the discounted cash flow (DCF) method to estimate allowances for credit losses for 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. In addition, the Company determined that four-quarters represented a reasonable and supportable forecast period and reverted to a historical loss rate over twelve quarters on a straight-line basis. As of and for the quarter ended June 30, 2020, the Company leveraged the economic projections from Moody’s Analytics Economic Scenarios and Forecasts to inform its loss driver forecasts over the four-quarter forecast period. For each of these loan segments, the Company applied an annualized historical Probability of Default/Loss Given Default (PD/LGD) using all available historical periods. The reason for the change from relying on the FRED economic data to Moody’s data was because Moody’s data is updated more frequently and timely than FOMC or FRED, and thus provides a better forecast for PD/LGD models. Since reasonable and supportable forecasts of economic conditions are imbedded directly to DCF model, qualitative adjustments are reduced but considered. Qualitative adjustments were based on the Company's judgment of company, market, industry or business specific data, changes in the underlying loan composition of specific portfolios. Management determined that, due to model limitations, the regression model that supports the DCF calculation for the SBA and commercial property, construction, and residential real estate portfolios does not take into account the volatile nature of COVID-19 on these portfolios, as well as the government assistance programs based on the maturities . As a result , at June 30, 2020 , t he Company utilized the Probability of Default/Loss Given Default (PD/LGD) method for the SBA and commercial property, construction, and residential real estate portfolios. The Company previously applied the DCF method to the real estate secured portfolios in the implementation of CECL at January 1, 2020 and through March 31, 2020 and determined that the change from DCF to PD/LGD was not material. See Note 1 – Organization and Basis of Presentation for a further description of the methodologies applied at the inception of CECL and during the three months ended March 31, 2020. The Company used historical periods that included an economic downturn to derive historical losses for better alignment in the estimation of expected losses. The Company leveraged Frye-Jacobs modeled LGD rates for loan segments with no historical losses. In addition, for those loans granted a loan modification due to COVID-19, the Company used historical periods under PD/LGD as of March 31, 2020 to reflect the moratorium on TDRs under Section 4013 of the CARES Act. The PD/LGD method incorporates a forecast into loss estimates using a qualitative adjustment . Qualitative loss factors were based on the Company's judgment of company, market, industry or business specific data, changes in the 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 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 June 30, 2020 and 2019: Real Estate Commercial and Industrial Leases Receivable Consumer Unallocated Total (in thousands) June 30, 2020 Balance at beginning of period $ 38,983 $ 11,588 $ 15,780 $ 149 $ — 66,500 Less loans charged off 91 438 1,044 — — 1,573 Recoveries on loans receivable previously charged off (98 ) (60 ) (114 ) — — (272 ) Provision for credit losses 17,226 2,178 1,674 53 — 21,131 Ending balance $ 56,216 $ 13,388 $ 16,524 $ 202 $ — $ 86,330 Individually evaluated for impairment $ 2,807 $ 123 $ 2,262 $ 2 $ — $ 5,194 Collectively evaluated for impairment $ 53,409 $ 13,265 $ 14,262 $ 200 $ — $ 81,136 Loans receivable $ 3,620,306 $ 730,399 $ 462,811 $ 12,126 $ — $ 4,825,642 Individually evaluated for impairment $ 48,302 $ 13,771 $ 8,456 $ 1,280 $ — $ 71,809 Collectively evaluated for impairment $ 3,572,004 $ 716,628 $ 454,355 $ 10,846 $ — $ 4,753,833 June 30, 2019 Balance at beginning of period $ 18,306 $ 8,711 $ 5,580 $ 89 $ 210 $ 32,896 Less loans charged off — 562 974 — — 1,536 Recoveries on loans receivable previously charged off (1,133 ) (89 ) (105 ) — — (1,327 ) Provision for credit losses 14,565 997 1,357 (10 ) (210 ) 16,699 Ending balance $ 34,004 $ 9,235 $ 6,068 $ 79 $ — $ 49,386 Individually evaluated for impairment $ 14,724 $ 3,072 $ 662 $ 1 $ — $ 18,459 Collectively evaluated for impairment $ 19,280 $ 6,163 $ 5,406 $ 78 $ — $ 30,927 Loans receivable $ 3,671,463 $ 409,502 $ 460,519 $ 14,318 $ — $ 4,555,802 Individually evaluated for impairment $ 39,885 $ 21,706 $ 3,233 $ 1,351 $ — $ 66,175 Collectively evaluated for impairment $ 3,631,578 $ 387,796 $ 457,286 $ 12,967 $ — $ 4,489,627 The following table details the information on the allowance for credit losses by portfolio segment as of and for the six months ended June 30, 2020 and 2019: Real Estate Commercial and Industrial Leases Receivable Consumer Unallocated Total (in thousands) June 30, 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 56 — 17,433 Adjusted balance as of January 1, 2020 50,327 13,709 14,669 136 — 78,841 Less loans charged off 14,233 12,589 2,224 — — 29,046 Recoveries on loans receivable previously charged off (156 ) (144 ) (188 ) — — (488 ) Provision for credit losses 19,966 12,124 3,891 66 — 36,047 Ending balance $ 56,216 $ 13,388 $ 16,524 $ 202 $ — $ 86,330 Individually evaluated for impairment $ 2,807 $ 123 $ 2,262 $ 2 $ — $ 5,194 Collectively evaluated for impairment $ 53,409 $ 13,265 $ 14,262 $ 200 $ — $ 81,136 Loans receivable $ 3,620,306 $ 730,399 $ 462,811 $ 12,126 $ — $ 4,825,642 Individually evaluated for impairment $ 48,302 $ 13,771 $ 8,456 $ 1,280 $ — $ 71,809 Collectively evaluated for impairment $ 3,572,004 $ 716,628 $ 454,355 $ 10,846 $ — $ 4,753,833 June 30, 2019 Balance at beginning of period $ 18,384 $ 7,162 $ 6,303 $ 98 $ 27 $ 31,974 Less loans charged off 113 695 1,826 — — 2,634 Recoveries on loans receivable previously charged off (1,563 ) (471 ) (196 ) — — (2,230 ) Provision for credit losses 14,170 2,297 1,395 (19 ) (27 ) 17,816 Ending balance $ 34,004 $ 9,235 $ 6,068 $ 79 $ — $ 49,386 Individually evaluated for impairment $ 14,724 $ 3,072 $ 662 $ 1 $ — $ 18,459 Collectively evaluated for impairment $ 19,280 $ 6,163 $ 5,406 $ 78 $ — $ 30,927 Loans receivable $ 3,671,463 $ 409,502 $ 460,519 $ 14,318 $ — $ 4,555,802 Individually evaluated for impairment $ 39,885 $ 21,706 $ 3,233 $ 1,351 $ — $ 66,175 Collectively evaluated for impairment $ 3,631,578 $ 387,796 $ 457,286 $ 12,967 $ — $ 4,489,627 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. June 30, 2020 December 31, 2019 Allowance Total Allowance Total Amount Percentage Loans Percentage Amount Percentage Loans Percentage (in thousands) Real estate loans: Commercial property Retail $ 7,341 8.5 % $ 808,157 16.7 % $ 4,911 8.0 % $ 869,302 18.9 % Hospitality 11,984 13.9 % 882,812 18.3 % 6,686 10.9 % 922,288 20.0 % Other 24,920 28.9 % 1,504,916 31.2 % 8,060 13.1 % 1,358,432 29.4 % Total commercial property loans 44,245 51.3 % 3,195,885 66.2 % 19,657 32.0 % 3,150,022 68.3 % Construction 9,331 10.8 % 70,357 1.5 % 15,003 24.4 % 76,455 1.7 % Residential property 2,640 3.1 % 354,064 7.3 % 1,695 2.8 % 402,028 8.7 % Total real estate loans 56,216 65.2 % 3,620,306 75.0 % 36,355 59.2 % 3,628,505 78.7 % Commercial and industrial loans 13,387 15.5 % 730,399 15.1 % 16,206 26.4 % 484,093 10.5 % Leases receivable 16,525 19.1 % 462,811 9.6 % 8,767 14.3 % 483,879 10.5 % Consumer loans 202 0.2 % 12,126 0.3 % 80 0.1 % 13,670 0.3 % Total $ 86,330 100.0 % $ 4,825,642 100.0 % $ 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 June 30, 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 June 30, 2020 (in thousands) Real estate loans: Commercial property $ 16,796 Construction 25,854 Residential property 2,761 Total real estate loans 45,411 Commercial and industrial loans 288 Consumer Loans 1,208 Total (1) $ 46,907 (1) All loans are secured by real estate, except for one commercial term loan secured by $264,000 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 June 30, 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) June 30, 2020 Real estate loans: Commercial property Retail $ 800,437 $ 1,182 $ 6,538 $ 808,157 Hospitality 879,131 — 3,681 882,812 Other 1,469,272 6,059 29,585 1,504,916 Total commercial property 3,148,840 7,241 39,804 3,195,885 Construction 44,503 — 25,854 70,357 Residential property 350,520 784 2,760 354,064 Total real estate loans 3,543,863 8,025 68,418 3,620,306 Commercial and industrial loans 702,443 12,423 15,533 730,399 Leases receivable 453,528 — 9,283 462,811 Consumer loans 10,752 686 688 12,126 Total loans receivable $ 4,710,586 $ 21,134 $ 93,922 $ 4,825,642 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) June 30, 2020 Commercial property Risk Rating Pass / Pass Watch $ 438,577 $ 539,598 $ 555,748 $ 429,415 $ 483,511 $ 671,096 $ 30,895 $ 3,148,840 Special Mention — 2,757 455 2,351 1,271 407 — 7,241 Classified 15,592 1,113 2,965 709 3,992 15,433 — 39,804 Total commercial property 454,169 543,468 559,168 432,475 488,774 686,936 30,895 3,195,885 Construction Risk Rating Pass / Pass Watch 18,025 5,633 — — 20,845 — — 44,503 Special Mention — — — — — — — — Classified — 12,808 13,046 — — — — 25,854 Total construction 18,025 18,441 13,046 — 20,845 — — 70,357 Residential property Risk Rating Pass / Pass Watch 274 954 40,468 149,532 100,367 58,925 — 350,520 Special Mention — — — — — 784 — 784 Classified — — — 1,890 754 116 — 2,760 Total residential property 274 954 40,468 151,422 101,121 59,825 — 354,064 Total real estate loans Risk Rating Pass / Pass Watch 456,876 546,185 596,216 578,947 604,723 730,021 30,895 3,543,863 Special Mention — 2,757 455 2,351 1,271 1,191 — 8,025 Classified 15,592 13,921 16,011 2,599 4,746 15,549 — 68,418 Total real estate loans 472,468 562,863 612,682 583,897 610,740 746,761 30,895 3,620,306 Commercial and industrial loans: Risk Rating Pass / Pass Watch 369,101 124,141 60,742 21,613 5,586 14,952 106,308 702,443 Special Mention 4,281 800 503 78 1,733 1,585 3,443 12,423 Classified 8,969 3,894 568 148 140 1,614 200 15,533 Total commercial and industrial loans 382,351 128,835 61,813 21,839 7,459 18,151 109,951 730,399 Leases receivable: Risk Rating Pass / Pass Watch 67,994 203,034 119,213 44,150 18,292 845 — 453,528 Special Mention — — — — — — — — Classified 11 3,554 2,807 1,191 1,299 421 — 9,283 Total leases receivable 68,005 206,588 122,020 45,341 19,591 1,266 — 462,811 Consumer loans: Risk Rating Pass / Pass Watch 121 25 15 86 7 2,610 7,888 10,752 Special Mention — — — — — 686 — 686 Classified — — 661 27 — — — 688 Total commercial term loans 121 25 676 113 7 3,296 7,888 12,126 Total loans receivable: Risk Rating Pass / Pass Watch 894,092 873,385 776,186 644,796 628,608 748,428 145,091 4,710,586 Special Mention 4,281 3,557 958 2,429 3,004 3,462 3,443 21,134 Classified 24,572 21,369 20,047 3,965 6,185 17,584 200 93,922 Total loans receivable $ 922,945 $ 898,311 $ 797,191 $ 651,190 $ 637,797 $ 769,474 $ 148,734 $ 4,825,642 (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) June 30, 2020 Real estate loans: Commercial property Payment performance Performing $ 453,569 $ 543,468 $ 559,015 $ 432,475 $ 488,673 $ 681,933 $ 30,895 $ 3,190,028 Nonperforming 600 — 153 — 101 5,003 — 5,857 Total commercial property 454,169 543,468 559,168 432,475 488,774 686,936 30,895 3,195,885 Construction Payment performance Performing 18,025 5,633 — — 20,845 — — $ 44,503 Nonperforming — 12,808 13,046 — — — — 25,854 Total construction 18,025 18,441 13,046 — 20,845 — — 70,357 Residential property Payment performance Performing 274 954 40,468 149,532 100,366 59,677 — 351,271 Nonperforming — — — 1,890 755 148 — 2,793 Total residential property 274 954 40,468 151,422 101,121 59,825 — 354,064 Total real estate loans Payment performance Performing 471,868 550,055 599,483 582,007 609,884 741,610 30,895 3,585,802 Nonperforming 600 12,808 13,199 1,890 856 5,151 — 34,504 Total real estate loans 472,468 562,863 612,682 583,897 610,740 746,761 30,895 3,620,306 Commercial and industrial loans: Payment performance Performing 373,382 124,940 61,377 21,691 7,459 18,015 109,751 716,615 Nonperforming 8,969 3,895 436 148 — 136 200 13,784 Total commercial and industrial loans 382,351 128,835 61,813 21,839 7,459 18,151 109,951 730,399 Leases receivable: Payment performance Performing 67,994 203,034 119,213 44,150 18,292 846 — 453,529 Nonperforming 11 3,554 2,807 1,191 1,299 420 — 9,282 Total leases receivable 68,005 206,588 122,020 45,341 19,591 1,266 — 462,811 Consumer loans: Payment performance Performing 121 25 15 86 7 3,296 7,888 11,438 Nonperforming — — 661 27 — — — 688 Total commercial term loans 121 25 676 113 7 3,296 7,888 12,126 Total loans receivable: Payment performance Performing 913,365 878,054 780,088 647,934 635,642 763,767 148,534 4,767,384 Nonperforming 9,580 20,257 17,103 3,256 2,155 5,707 200 58,258 Total loans receivable $ 922,945 $ 898,311 $ 797,191 $ 651,190 $ 637,797 $ 769,474 $ 148,734 $ 4,825,642 (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) June 30, 2020 Real estate loans: Commercial property Retail $ — $ — $ — $ — $ 808,157 $ 808,157 $ — Hospitality — — — — 882,812 882,812 — Other — — 1,645 1,645 1,503,271 1,504,916 — Total commercial property loans — — 1,645 1,645 3,194,240 3,195,885 — Construction — — — — 70,357 70,357 — Residential property 2,682 — 2,645 5,327 348,737 354,064 — Total real estate loans 2,682 — 4,290 6,972 3,613,334 3,620,306 — Commercial and industrial loans 212 — 12,632 12,844 717,555 730,399 — Leases receivable 3,684 5,095 5,113 13,893 448,918 462,811 — Consumer loans — — 27 27 12,099 12,126 — Total loans receivable $ 6,578 $ 5,095 $ 22,062 $ 33,736 $ 4,791,906 $ 4,825,642 $ — 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 June 30, 2020 and December 31, 2019, there were no loans 90 days or more past due and accruing interest. 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 loan losses or we established a specific allowance in the allowance for loan losses. Additionally, we excluded from the quarterly migration analysis impaired loans when determining the amount of the allowance for loan 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 June 30, 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) June 30, 2020 Real estate loans: Commercial property Retail $ 1,355 $ 1,355 $ 1,355 $ — $ — Other 18,299 19,725 17,679 620 20 Total commercial property loans 19,654 21,080 19,034 620 20 Construction 25,854 27,330 13,046 12,808 2,787 Residential property 2,794 2,770 2,761 33 — Total real estate loans 48,302 51,180 34,841 13,461 2,807 Commercial and industrial loans 13,771 14,589 12,877 893 123 Leases receivable 8,456 8,521 1,797 6,660 2,262 Consumer loans 1,280 1,599 1,208 72 2 Total $ 71,809 $ 75,889 $ 50,723 $ 21,086 $ 5,194 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 June 30, 2020. June 30, 2020 Nonaccrual Loans With No Allowance for Credit Losses Nonaccrual Loans With Allowance for Credit Losses Loans Past Due 90 Days Still Accruing Total Nonperforming Loans (in thousands) Real estate loans: Retail $ 1,355 $ — $ — $ 1,355 Other 3,883 620 — 4,503 Commercial property loans 5,238 620 — 5,858 Construction loans 13,046 12,808 — 25,854 Residential property loans 2,761 33 — 2,794 Total real estate loans 21,045 13,461 — 34,506 Commercial and industrial loans 12,878 907 — 13,785 Leases receivable 1,797 7,488 — 9,285 Consumer loans 688 — — 688 Total $ 36,408 $ 21,856 $ — $ 58,264 The following is a summary of interest foregone on nonaccrual loans for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (in thousands) Interest income that would have been recognized had impaired loans performed in accordance with their original terms $ 1,386 $ 1,120 $ 2,998 $ 2,009 Less: Interest income recognized on impaired loans (508 ) (696 ) (1,085 ) (1,378 ) Interest foregone on impaired loans $ 878 $ 424 $ 1,913 $ 631 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: June 30, 2020 December 31, 2019 (in thousands) Real estate loans: Commercial property Retail $ 1,355 $ 277 Hospitality — 225 Other 4,503 14,864 Total Commercial property loans 5,858 15,366 Construction 25,854 27,201 Residential property 2,794 1,124 Total real estate loans 34,506 43,691 Commercial and industrial loans 13,785 13,479 Leases receivable 9,285 5,902 Consumer loans 688 689 Total nonaccrual loans $ 58,264 $ 63,761 The following table details nonperforming assets as of the dates indicated: June 30, 2020 December 31, 2019 (in thousands) Nonaccrual loans $ 58,264 $ 63,761 Loans receivable 90 days or more past due and still accruing — — Total nonperforming loans receivable 58,264 63,761 Other real estate owned ("OREO") 148 63 Total nonperforming assets $ 58,412 $ 63,824 OREO is included in prepaid expenses and other assets in the accompanying Consolidated Balance Sheets as of June 30, 2020 and December 31, 2019. Troubled Debt Restructurings As of June 30, 2020 and December 31, 2019, total TDRs were $31.6 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 June 30, 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 June 30, 2020 Real estate loans $ — $ 1,483 $ 13,548 $ 618 $ 15,649 $ — $ — $ — $ 13,796 $ 13,796 Commercial and industrial loans — 181 247 296 724 — — 51 85 136 Consumer loans 661 — — — 661 521 — 71 — 592 Total $ 661 $ 1,664 $ 13,795 $ 914 $ 17,034 $ 521 $ — $ 122 $ 13,881 $ 14,524 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 periods indicated, with their pre- and post-modification recorded amounts. Three Months ended Twelve Months ended June 30, 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 2 $ 2,002 $ 1,973 5 $ 40,743 $ 41,798 Commercial and industrial loans — — — 2 12,779 12,562 Consumer loans — — — 1 549 531 Total 2 $ 2,002 $ 1,973 8 $ 54,071 $ 54,891 Six Months ended Twelve Months ended June 30, 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 2 $ 2,002 $ 1,973 5 $ 40,743 $ 41,798 Commercial and industrial loans — — — 2 12,779 12,562 Consumer loans — — — 1 549 531 Total 2 $ 2,002 $ 1,973 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 June |