Loans | Note 3 — Loans Loans Receivable Loans consisted of the following as of the dates indicated: September 30, 2020 December 31, 2019 (in thousands) Real estate loans: Commercial property Retail $ 805,055 $ 869,302 Hospitality 877,354 922,288 Other (1) 1,526,411 1,358,432 Total commercial property loans 3,208,820 3,150,022 Construction 55,627 76,455 Residential property 359,188 402,028 Total real estate loans 3,623,635 3,628,505 Commercial and industrial loans 765,484 484,093 Leases receivable 433,323 483,879 Consumer loans (2) 11,695 13,670 Loans receivable 4,834,137 4,610,147 Allowance for credit losses (86,620 ) (61,408 ) Loans receivable, net $ 4,747,517 $ 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 $7.0 million and $8.2 million as of September 30, 2020 and December 31, The Coronavirus Aid, Relief, and Economic Security Act (“CARES” Act) was signed into law 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; 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 September 30, 2020, there were $302.9 million of PPP loans included in commercial and industrial loans in the table above. In addition, at September 30, 2020, there were $578.5 million of loans modified under Section 4013 of the CARES Act. Accrued interest on loans was $20.2 million and $10.0 million at September 30, 2020 and December 31, 2019, respectively. At September 30, 2020, accrued interest receivable related to the $578.5 million in modified loans under the CARES Act was $8.8 million. At September 30, 2020 and December 31, 2019, loans of $2.27 billion and $1.35 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 September 30, 2020 and 2019: Real Estate Commercial and Industrial Total (in thousands) September 30, 2020 Balance at beginning of period $ 12,661 $ 5,281 $ 17,942 Originations and transfers 12,049 12,107 24,156 Sales (20,621 ) (8,639 ) (29,260 ) Principal paydowns and amortization — (5 ) (5 ) Balance at end of period $ 4,089 $ 8,745 $ 12,834 September 30, 2019 Balance at beginning of period $ 2,677 $ 3,352 $ 6,029 Originations 11,502 13,354 24,856 Sales (11,557 ) (12,729 ) (24,286 ) Principal paydowns and amortization — (1 ) (1 ) Balance at end of period $ 2,622 $ 3,976 $ 6,598 The following is the activity for SBA loans held for sale for the nine months ended September 30, 2020 and 2019: Real Estate Commercial and Industrial Total (in thousands) September 30, 2020 Balance at beginning of period $ 2,943 $ 3,077 $ 6,020 Originations and transfers 31,204 23,091 54,295 Sales (30,053 ) (17,419 ) (47,472 ) Principal payoffs and amortization (5 ) (5 ) (10 ) Balance at end of period $ 4,089 $ 8,745 $ 12,834 September 30, 2019 Balance at beginning of period $ 5,194 $ 4,196 $ 9,390 Originations 27,215 25,164 52,379 Sales (29,786 ) (25,370 ) (55,156 ) Principal payoffs and amortization (1 ) (14 ) (15 ) Balance at end of period $ 2,622 $ 3,976 $ 6,598 Allowance for Credit Losses The Company’s estimate of the allowance for credit losses at September 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 September 30, 2020, the Company used the 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 September 30, 2020, the Company leveraged the economic projections from Moody’s Analytics to inform its loss driver forecasts over the four-quarter forecast period whereas it had previously relied on FRED economic data. For each of these loan segments, the Company applied an annualized historical 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 into the 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, as well as changes in the underlying loan composition of specific portfolios. At September 30, 2020, the Company used the PD/LGD method for the commercial property, construction and residential property portfolios. The Company used historical periods that included an economic downturn to derive historical losses for better alignment in the estimation of expected losses under the PD/LGD method. 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 and for the subsequent six months ended September 30, 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 the 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 Company 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 September 30, 2020 and 2019: Real Estate Commercial and Industrial Leases Receivable Consumer Unallocated Total (in thousands) September 30, 2020 Balance at beginning of period 56,216 $ 13,388 $ 16,524 $ 202 $ — 86,330 Less loans charged off 687 383 1,081 — — 2,151 Recoveries on loans receivable previously charged off (1,497 ) (35 ) (213 ) — — (1,745 ) Provision for credit losses (6,752 ) 7,809 (368 ) 8 — 697 Ending balance $ 50,274 $ 20,849 $ 15,287 $ 210 $ — $ 86,620 Individually evaluated for impairment $ 33 $ 1,623 $ 2,087 $ 2 $ — $ 3,745 Collectively evaluated for impairment $ 50,241 $ 19,226 $ 13,200 $ 208 $ — $ 82,875 Loans receivable $ 3,623,635 $ 765,484 $ 433,323 $ 11,695 $ — $ 4,834,137 Individually evaluated for impairment $ 46,958 $ 13,293 $ 7,338 $ 1,262 $ 68,851 Collectively evaluated for impairment $ 3,576,677 $ 752,191 $ 425,985 $ 10,433 $ — $ 4,765,286 September 30, 2019 Balance at beginning of period $ 34,004 $ 9,235 $ 6,068 $ 79 $ — $ 49,386 Less loans charged off 17 244 653 2 — 916 Recoveries on loans receivable previously charged off (142 ) (381 ) (117 ) — — (640 ) Provision for credit losses 2,272 (1,551 ) 886 (5 ) — 1,602 Ending balance $ 36,401 $ 7,821 $ 6,418 $ 72 $ — $ 50,712 Individually evaluated for impairment $ 14,781 $ 1,270 $ 1,049 $ 1 $ — $ 17,101 Collectively evaluated for impairment $ 21,620 $ 6,551 $ 5,369 $ 71 $ — $ 33,611 Loans receivable $ 3,646,327 $ 441,209 $ 467,777 $ 14,524 $ — $ 4,569,837 Individually evaluated for impairment $ 47,972 $ 13,692 $ 4,303 $ 1,325 $ — $ 67,292 Collectively evaluated for impairment $ 3,598,355 $ 427,517 $ 463,474 $ 13,199 $ — $ 4,502,545 The following table details the information on the allowance for credit losses by portfolio segment as of and for the nine months ended September 30, 2020 and 2019: Real Estate Commercial and Industrial Leases Receivable Consumer Unallocated Total (in thousands) September 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 55 — 17,433 Adjusted balance 50,327 13,709 14,669 135 — 78,841 Less loans charged off 14,920 12,972 3,306 — — 31,197 Recoveries on loans receivable previously charged off (1,653 ) (179 ) (401 ) — — (2,233 ) Provision for credit losses 13,214 19,932 3,523 75 — 36,744 Ending balance $ 50,274 $ 20,849 $ 15,287 $ 210 $ — $ 86,620 Individually evaluated for impairment $ 33 $ 1,623 $ 2,087 $ 2 $ 3,745 Collectively evaluated for impairment $ 50,241 $ 19,226 $ 13,200 $ 208 $ — $ 82,875 Loans receivable $ 3,623,635 $ 765,484 $ 433,323 $ 11,695 $ — $ 4,834,137 Individually evaluated for impairment $ 46,958 $ 13,293 $ 7,338 $ 1,262 $ 68,851 Collectively evaluated for impairment $ 3,576,677 $ 752,191 $ 425,985 $ 10,433 $ — $ 4,765,286 September 30, 2019 Balance at beginning of period $ 18,384 $ 7,162 $ 6,303 $ 98 $ 27 $ 31,974 Less loans charged off 131 939 2,479 1 (1 ) 3,549 Recoveries on loans receivable previously charged off (1,704 ) (853 ) (312 ) — — (2,869 ) Provision for credit losses 16,444 745 2,282 (25 ) (28 ) 19,418 Ending balance $ 36,401 $ 7,821 $ 6,418 $ 72 $ — $ 50,712 Individually evaluated for impairment $ 14,781 $ 1,270 $ 1,049 $ 1 $ — $ 17,101 Collectively evaluated for impairment $ 21,620 $ 6,551 $ 5,369 $ 71 $ — $ 33,611 Loans receivable $ 3,646,327 $ 441,209 $ 467,777 $ 14,524 $ — $ 4,569,837 Individually evaluated for impairment $ 47,972 $ 13,692 $ 4,303 $ 1,325 $ — $ 67,292 Collectively evaluated for impairment $ 3,598,355 $ 427,517 $ 463,474 $ 13,199 $ — $ 4,502,545 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. September 30, 2020 December 31, 2019 Allowance Amount Percentage of Allowance Total Loans Percentage of Total Loans Allowance Amount Percentage of Allowance Total Loans Percentage of Total Loans (in thousands) Real estate loans: Commercial property Retail $ 5,838 6.8 % $ 805,055 16.7 % $ 4,911 8.0 % $ 869,302 18.9 % Hospitality 20,258 23.4 % 877,354 18.1 % 6,686 10.9 % 922,288 20.0 % Other 16,876 19.5 % 1,526,411 31.6 % 8,060 13.1 % 1,358,432 29.4 % Total commercial property loans 42,972 49.7 % 3,208,820 66.4 % 19,657 32.0 % 3,150,022 68.3 % Construction 4,859 5.6 % 55,627 1.2 % 15,003 24.4 % 76,455 1.7 % Residential property 2,443 2.8 % 359,188 7.4 % 1,695 2.8 % 402,028 8.7 % Total real estate loans 50,274 58.1 % 3,623,635 75.0 % 36,355 59.2 % 3,628,505 78.7 % Commercial and industrial loans 20,849 24.1 % 765,484 15.8 % 16,206 26.4 % 484,093 10.5 % Leases receivable 15,287 17.6 % 433,323 9.0 % 8,767 14.3 % 483,879 10.5 % Consumer loans 210 0.2 % 11,695 0.2 % 80 0.1 % 13,670 0.3 % Total $ 86,620 100.0 % $ 4,834,137 100.0 % $ 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 September 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 September 30, 2020 (in thousands) Real estate loans: Commercial property $ 13,419 Construction 29,444 Residential property 1,763 Total real estate loans 44,626 Commercial and industrial loans 288 Consumer Loans 1,193 Total (1) $ 46,106 (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 September 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) September 30, 2020 Real estate loans: Commercial property Retail $ 792,922 $ 3,381 $ 8,752 $ 805,055 Hospitality 831,705 24,979 20,670 877,354 Other 1,493,750 17,772 14,889 1,526,411 Total commercial property 3,118,377 46,132 44,311 3,208,820 Construction 26,183 — 29,444 55,627 Residential property 355,813 784 2,591 359,188 Total real estate loans 3,500,373 46,916 76,346 3,623,635 Commercial and industrial loans 737,561 9,508 18,415 765,484 Leases receivable 422,545 — 10,778 433,323 Consumer loans 10,342 681 672 11,695 Total loans receivable $ 4,670,821 $ 57,105 $ 106,211 $ 4,834,137 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 At September 30, 2020, of the $578.5 million of loans modified in accordance with the provision of the CARES Act, $524.9 million were in pass/watch, $30.1 million were special mention, and $23.5 million were classified. 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) September 30, 2020 Commercial property Risk Rating Pass / Pass Watch $ 570,682 $ 533,660 $ 549,071 $ 403,452 $ 444,628 $ 581,498 $ 35,386 $ 3,118,377 Special Mention 13,680 5,892 445 1,682 19,185 5,248 — 46,132 Classified 1,419 749 5,488 3,745 16,155 16,755 — 44,311 Total commercial property 585,781 540,301 555,004 408,879 479,968 603,501 35,386 3,208,820 Construction Risk Rating Pass / Pass Watch 25,990 193 — — — — — 26,183 Special Mention — — — — — — — — Classified 12,808 3,590 13,046 — — — — 29,444 Total construction 38,798 3,783 13,046 — — — — 55,627 Residential property Risk Rating Pass / Pass Watch 26,328 954 38,870 141,045 92,614 56,002 — 355,813 Special Mention — — — — — 784 — 784 Classified — — — 1,836 755 — — 2,591 Total residential property 26,328 954 38,870 142,881 93,369 56,786 — 359,188 Total real estate loans Risk Rating Pass / Pass Watch 623,000 534,807 587,941 544,497 537,242 637,500 35,386 3,500,373 Special Mention 13,680 5,892 445 1,682 19,185 6,032 — 46,916 Classified 14,227 4,339 18,534 5,581 16,910 16,755 — 76,346 Total real estate loans 650,907 545,038 606,920 551,760 573,337 660,287 35,386 3,623,635 Commercial and industrial loans: Risk Rating Pass / Pass Watch 422,525 82,679 60,131 21,854 4,912 12,776 132,684 737,561 Special Mention 3,044 — — 471 1,732 2,562 1,699 9,508 Classified 9,378 3,894 696 54 134 308 3,951 18,415 Total commercial and industrial loans 434,947 86,573 60,827 22,379 6,778 15,646 138,334 765,484 Leases receivable: Risk Rating Pass / Pass Watch 81,035 184,006 104,876 36,545 13,998 2,085 — 422,545 Special Mention — — — — — — — — Classified 148 5,349 2,591 1,071 1,264 355 — 10,778 Total leases receivable 81,183 189,355 107,467 37,616 15,262 2,440 — 433,323 Consumer loans: Risk Rating Pass / Pass Watch 119 12 10 77 6 2,464 7,654 10,342 Special Mention — — — — — 681 — 681 Classified — — 647 25 — — — 672 Total commercial term loans 119 12 657 102 6 3,145 7,654 11,695 Total loans receivable: Risk Rating Pass / Pass Watch 1,126,679 801,504 752,958 602,973 556,158 654,825 175,724 4,670,821 Special Mention 16,724 5,892 445 2,153 20,917 9,275 1,699 57,105 Classified 23,753 13,582 22,468 6,731 18,308 17,418 3,951 106,211 Total loans receivable $ 1,167,156 $ 820,978 $ 775,871 $ 611,857 $ 595,383 $ 681,518 $ 181,374 $ 4,834,137 (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) September 30, 2020 Real estate loans: Commercial property Payment performance Performing $ 585,781 $ 540,301 $ 554,849 $ 407,353 $ 477,221 $ 599,468 $ 35,386 $ 3,200,359 Nonperforming — — 155 1,526 2,747 4,033 — 8,461 Total commercial property 585,781 540,301 555,004 408,879 479,968 603,501 35,386 3,208,820 Construction Payment performance Performing 25,990 193 — — — — — $ 26,183 Nonperforming 12,808 3,590 13,046 — — — — 29,444 Total construction 38,798 3,783 13,046 — — — — 55,627 Residential property Payment performance Performing 26,328 954 38,870 141,873 92,614 56,786 — 357,425 Nonperforming — — — 1,008 755 — — 1,763 Total residential property 26,328 954 38,870 142,881 93,369 56,786 — 359,188 Total real estate loans Payment performance Performing 638,099 541,448 593,719 549,226 569,835 656,254 35,386 3,583,967 Nonperforming 12,808 3,590 13,201 2,534 3,502 4,033 — 39,668 Total real estate loans 650,907 545,038 606,920 551,760 573,337 660,287 35,386 3,623,635 Commercial and industrial loans: Payment performance Performing 426,275 82,679 60,378 22,325 6,778 15,500 138,334 752,269 Nonperforming 8,672 3,894 449 54 — 146 — 13,215 Total commercial and industrial loans 434,947 86,573 60,827 22,379 6,778 15,646 138,334 765,484 Leases receivable: Payment performance Performing 81,035 184,006 104,876 36,545 13,998 2,085 — 422,545 Nonperforming 148 5,349 2,591 1,071 1,264 355 — 10,778 Total leases receivable 81,183 189,355 107,467 37,616 15,262 2,440 — 433,323 Consumer loans: Payment performance Performing 119 12 10 77 6 3,145 7,654 11,023 Nonperforming — — 647 25 — — — 672 Total commercial term loans 119 12 657 102 6 3,145 7,654 11,695 Total loans receivable: Payment performance Performing 1,145,528 808,145 758,983 608,173 590,617 676,984 181,374 4,769,804 Nonperforming 21,628 12,833 16,888 3,684 4,766 4,534 — 64,333 Total loans receivable $ 1,167,156 $ 820,978 $ 775,871 $ 611,857 $ 595,383 $ 681,518 $ 181,374 $ 4,834,137 (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) September 30, 2020 Real estate loans: Commercial property Retail $ 1,282 $ 50 $ — $ 1,332 $ 803,723 $ 805,055 $ — Hospitality 1,040 — — 1,040 876,314 877,354 — Other 404 — 227 631 1,525,780 1,526,411 — Total commercial property loans 2,725 50 227 3,002 3,205,818 3,208,820 — Construction — — 16,636 16,636 38,991 55,627 — Residential property 322 469 1,294 2,085 357,103 359,188 — Total real estate loans 3,047 519 18,158 21,724 3,601,912 3,623,635 — Commercial and industrial loans 170 110 12,854 13,134 752,350 765,484 — Leases receivable 5,053 2,804 5,188 13,045 420,278 433,323 — Consumer loans — — 25 25 11,670 11,695 — Total loans receivable $ 8,270 $ 3,432 $ 36,225 $ 47,927 $ 4,786,210 $ 4,834,137 $ — 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 September 30, 2020 and December 31, 2019, there were no loans 90 days or more past due and accruing interest. At September 30, 2020, all $578.5 million of modified loans under the CARES Act were current. 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, the Company 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. Under ASU 2016-13, the Company reviews 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 September 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) September 30, 2020 Real estate loans: Commercial property Retail $ 5,504 $ 5,549 $ 5,504 $ — $ — Other 10,248 11,449 9,474 774 33 Total commercial property loans 15,751 16,998 14,977 774 33 Construction 29,444 31,083 29,444 — — Residential property 1,763 1,737 1,763 — — Total real estate loans 46,958 49,818 46,184 774 33 Commercial and industrial loans 13,293 14,056 308 12,985 1,623 Leases receivable 7,338 7,383 1,035 6,303 2,087 Consumer loans 1,262 1,590 1,193 69 2 Total $ 68,851 $ 72,847 $ 48,720 $ 20,131 $ 3,746 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 September 30, 2020. September 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 $ 5,504 $ — $ — $ 5,504 Other 2,184 774 — 2,958 Commercial property loans 7,687 774 — 8,461 Construction loans 29,444 — — 29,444 Residential property loans 1,763 — — 1,763 Total real estate loans 38,894 774 — 39,668 Commercial and industrial loans 308 12,908 — 13,215 Leases receivable 1,035 9,743 — 10,778 Consumer loans 672 — — 672 Total $ 40,909 $ 23,424 $ — $ 64,333 The following is a summary of interest foregone on nonaccrual loans for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (in thousands) Interest income that would have been recognized had impaired loans performed in accordance with their original terms $ 1,482 $ 916 $ 4,092 $ 2,407 Less: Interest income recognized on impaired loans (204 ) (80 ) (1,319 ) (1,018 ) Interest foregone on impaired loans $ 1,278 $ 836 $ 2,773 $ 1,389 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: September 30, 2020 December 31, 2019 (in thousands) Real estate loans: Commercial property Retail $ 5,504 $ 277 Hospitality — 225 Other 2,958 14,864 Total Commercial property loans 8,461 15,366 Construction 29,444 27,201 Residential property 1,763 1,124 Total real estate loans 39,668 43,691 Commercial and industrial loans 13,215 13,479 Leases receivable 10,778 5,902 Consumer loans 672 689 Total nonaccrual loans $ 64,333 $ 63,761 The following table details nonperforming assets as of the dates indicated: September 30, 2020 December 31, 2019 (in thousands) Nonaccrual loans $ 64,333 $ 63,761 Loans receivable 90 days or more past due and still accruing — — Total nonperforming loans receivable 64,333 63,761 Other real estate owned ("OREO") 1,052 63 Total nonperforming assets $ 65,385 $ 63,824 OREO is included in prepaid expenses and other assets in the accompanying Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019. Troubled Debt Restructurings As of September 30, 2020 and December 31, 2019, total TDRs were $25.9 million and $56.3 million, respectively. A debt restructuring is considered a TDR if we grant a concession that we would not have otherwise been considered, to the borrower for economic or legal reasons related to the borrower’s financial difficulties. In addition, the concession granted must result in a reduction in the borrower’s payment for a period of three months or more in order to be classified as a TDR. The following table details TDRs as of September 30, 2020 and December 31, 2019: Nonaccrual TDRs Accrual TDRs Deferral of Principal Deferral of Principal and Interest Reduction of Principal and Interest Extension of Maturity Total Deferral of Principal Deferral of Principal and Interest Reduction of Principal and Interest Extension of Maturity Total (in thousands) September 30, 2020 Real estate loans $ — $ 3,382 $ 13,511 $ — $ 16,893 $ — $ — $ — $ 7,290 $ 7,290 Commercial and industrial loans — 176 247 — 423 — — 7 70 77 Consumer loans 647 — — — 647 521 — 69 — 590 Total $ 647 $ 3,558 $ 13,758 $ — $ 17,963 $ 521 $ — $ 76 $ 7,360 $ 7,957 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 September 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 1 $ 2,004 $ 1,526 5 $ 40,743 $ 41,798 Commercial and industrial loans — — — 2 12,779 12,562 Consumer loans — — — 1 549 531 Total 1 $ 2,004 $ 1,526 8 $ 54,071 $ 54,891 Nine Months ended Twelve Months ended September 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 3 $ 4,005 $ 3,253 5 $ 40,743 $ 41,798 Commercial and industrial loans — — — 2 12,779 12,562 Consumer loans — — — 1 549 531 Total 3 $ 4,005 $ 3,253 8 $ 54,071 $ 54,891 All TDRs are individually analyzed using one of 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 September 30, 2020 and December 31, 2019, TDRs were subjected to specif |