Loans and Leases | Loans and Leases Loans and Leases Receivable Loans and leases receivable consisted of the following as of the dates indicated: June 30, 2019 December 31, 2018 (in thousands) Real estate loans: Commercial property Retail $ 873,682 $ 906,260 Hospitality 855,853 830,679 Other (1) 1,418,146 1,449,270 Total commercial property loans 3,147,681 3,186,209 Construction 65,454 71,583 Residential property 458,328 500,563 Total real estate loans 3,671,463 3,758,355 Commercial and industrial loans: Commercial term 195,312 206,691 Commercial lines of credit 186,103 194,032 International loans 28,087 29,180 Total commercial and industrial loans 409,502 429,903 Leases receivable 460,519 398,858 Consumer loans (2) 14,318 13,424 Loans and leases receivable 4,555,802 4,600,540 Allowance for loan and lease losses (49,386 ) (31,974 ) Loans and leases receivable, net $ 4,506,416 $ 4,568,566 (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 and leases receivable. (2) Consumer loans include home equity lines of credit of $9.4 million and $10.3 million as of June 30, 2019 and December 31, 2018 , respectively. Accrued interest on loans and leases receivable was $11.2 million and $10.9 million at June 30, 2019 and December 31, 2018 , respectively. At June 30, 2019 and December 31, 2018 , loans and leases receivable of $1.2 billion and $1.1 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, 2019 and 2018 : SBA Loans Held for Sale Real Estate Commercial and Industrial Total (in thousands) 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 June 30, 2018 Balance at beginning of period $ 2,151 $ 3,857 $ 6,008 Originations 10,155 8,407 18,562 Sales (9,519 ) (9,585 ) (19,104 ) Principal paydowns and amortization (2 ) (115 ) (117 ) Balance at end of period $ 2,785 $ 2,564 $ 5,349 The following is the activity for SBA loans held for sale for the six months ended June 30, 2019 and 2018 : SBA Loans Held for Sale Real Estate Commercial and Industrial Total (in thousands) 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 paydowns and amortization (2 ) (12 ) (14 ) Balance at end of period $ 2,676 $ 3,353 $ 6,029 June 30, 2018 Balance at beginning of period $ 3,746 $ 2,648 $ 6,394 Originations 20,588 16,779 37,367 Sales (21,547 ) (16,744 ) (38,291 ) Principal paydowns and amortization (2 ) (119 ) (121 ) Balance at end of period $ 2,785 $ 2,564 $ 5,349 Allowance for Loan and Lease Losses Activity in the allowance for loan and lease losses was as follows for the periods indicated: As of and for the Three Months Ended June 30, As of and for the Six Months Ended June 30, 2019 2018 2019 2018 (in thousands) Balance at beginning of period $ 32,896 $ 31,777 $ 31,974 $ 31,043 Loans and leases charged off (1,536 ) (657 ) (2,634 ) $ (2,289 ) Recoveries on loans and leases previously charged off 1,327 598 2,230 $ 2,315 Net (charge-offs) recoveries (209 ) (59 ) (404 ) 26 Loan and lease loss provision 16,699 100 17,816 $ 749 Balance at end of period $ 49,386 $ 31,818 $ 49,386 $ 31,818 Management believes the allowance for loan and lease losses is appropriate to provide for probable incurred losses inherent in the loan and lease portfolio. However, the allowance is an estimate that is inherently uncertain and depends on the outcome of future events. Management’s estimates are based on: previous loss experience; size, growth and composition of the loan and lease portfolio; the value of collateral; and current economic conditions. 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 loan and lease portfolio may require us to increase our allowance for loan and lease losses. The following table details the information on the allowance for loan and lease losses by portfolio segment as of and for the three months ended June 30, 2019 and 2018 : Real Estate Commercial and Industrial Leases Receivable Consumer Unallocated Total (in thousands) As of and for the Three Months Ended June 30, 2019 Allowance for loan and lease losses on loans and leases: Beginning balance $ 18,306 $ 8,711 5,580 $ 89 $ 210 $ 32,896 Less loans and leases charged off — (562 ) (974 ) — — (1,536 ) Recoveries on loans and leases previously charged off 1,133 89 105 — — 1,327 Loan and lease loss provision 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 and leases 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 Real Estate Commercial and Industrial Leases Receivable Consumer Unallocated Total (in thousands) As of and for the Three Months Ended June 30, 2018 Allowance for loan and lease losses on loans and leases: Beginning balance $ 17,640 $ 6,890 7,110 $ 125 $ 12 $ 31,777 Less loans and leases charged off (40 ) (86 ) (531 ) — — (657 ) Recoveries on loans and leases previously charged off 371 197 29 1 — 598 Loan and lease loss provision (55 ) 119 41 (17 ) 12 100 Ending balance $ 17,916 $ 7,120 $ 6,649 $ 109 $ 24 $ 31,818 Individually evaluated for impairment $ 1,540 $ 578 $ 1,859 $ — $ — $ 3,977 Collectively evaluated for impairment $ 16,376 $ 6,542 $ 4,790 $ 109 $ 24 $ 27,841 Loans and leases receivable: $ 3,781,209 $ 396,522 $ 350,578 $ 13,817 $ — $ 4,542,126 Individually evaluated for impairment $ 18,261 $ 3,000 $ 4,801 $ 877 $ — $ 26,939 Collectively evaluated for impairment $ 3,762,948 $ 393,522 $ 345,777 $ 12,940 $ — $ 4,515,187 The following table details the information on the allowance for loan and lease losses by portfolio segment as of and for the six months ended June 30, 2019 and 2018 : Real Estate Commercial and Industrial Leases Receivable Consumer Unallocated Total (in thousands) As of and for the Six Months Ended June 30, 2019 Allowance for loan and lease losses on loans and leases: Beginning balance $ 18,384 $ 7,162 6,303 $ 98 $ 27 $ 31,974 Less loans and leases charged off (113 ) (695 ) (1,826 ) — — (2,634 ) Recoveries on loans and leases previously charged off 1,563 471 196 — — 2,230 Loan and lease loss provision 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 and leases 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 Real Estate Commercial and Industrial Leases Receivable Consumer Unallocated Total (in thousands) As of and for the Six Months Ended June 30, 2018 Allowance for loan and lease losses on loans and leases: Beginning balance $ 17,012 $ 7,400 6,279 $ 122 $ 230 $ 31,043 Less loans and leases charged off (1,029 ) (365 ) (895 ) — — (2,289 ) Recoveries on loans and leases previously charged off 1,256 933 124 2 — 2,315 Loan and lease loss provision 677 (848 ) 1,141 (15 ) (206 ) 749 Ending balance $ 17,916 $ 7,120 $ 6,649 $ 109 $ 24 $ 31,818 Individually evaluated for impairment $ 1,540 $ 578 $ 1,859 $ — $ — $ 3,977 Collectively evaluated for impairment $ 16,376 $ 6,542 $ 4,790 $ 109 $ 24 $ 27,841 Loans and leases receivable: $ 3,781,209 $ 396,522 $ 350,578 $ 13,817 $ — $ 4,542,126 Individually evaluated for impairment $ 18,261 $ 3,000 $ 4,801 $ 877 $ — $ 26,939 Collectively evaluated for impairment $ 3,762,948 $ 393,522 $ 345,777 $ 12,940 $ — $ 4,515,187 Loan Quality Indicators As part of the on-going monitoring of the quality of our loan and lease portfolio, we utilize an internal loan and lease grading system to identify credit risk and assign an appropriate grade (from 0 to 8) for each loan or lease in our loan and lease portfolio. A third-party loan review is required on an annual basis. Additional adjustments are made when determined to be necessary. The loan and lease grade definitions are as follows: Pass and Pass-Watch: Pass and Pass-Watch loans and leases, 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 and lease grading system. It consists of all performing loans and leases with no identified credit weaknesses. It includes cash and stock/security secured loans or other investment grade loans. Special Mention: A Special Mention loan or lease, 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 and leases that have significant actual, not potential, weaknesses are considered more severely classified. Substandard: A Substandard loan or lease, grade (6), has a well-defined weakness that jeopardizes the liquidation of the debt. A loan or lease 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 or lease, there is a distinct possibility that the Bank will sustain some loss if the weaknesses or deficiencies are not corrected. Doubtful: A Doubtful loan or lease, 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 or lease, and therefore the amount or timing of a possible loss cannot be determined at the current time. Loss: A loan or lease classified as Loss, grade (8), is considered uncollectable and of such little value that their continuance as active bank assets is not warranted. This classification does not mean that the loan or lease 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 and leases classified as Loss will be charged off in a timely manner. Under regulatory guidance, loans and leases graded special mention or worse are considered criticized loans and leases, and loans and leases graded substandard or worse are considered classified loans and leases. As of June 30, 2019 and December 31, 2018 , pass/pass-watch, special mention and classified loans and leases, disaggregated by loan class, were as follows: Pass/Pass-Watch Special Mention Classified Total (in thousands) June 30, 2019 Real estate loans: Commercial property Retail $ 862,505 $ 6,255 $ 4,922 $ 873,682 Hospitality 850,004 2 5,847 855,853 Other 1,405,239 2,658 10,249 1,418,146 Total commercial property loans 3,117,748 8,915 21,018 3,147,681 Construction 29,774 7,744 27,936 65,454 Residential property 456,708 802 817 458,327 Total real estate loans 3,604,230 17,461 49,771 3,671,462 Commercial and industrial loans: Commercial term 177,389 386 17,537 195,312 Commercial lines of credit 176,466 5,241 4,396 186,103 International loans 28,087 — — 28,087 Total commercial and industrial loans 381,942 5,627 21,933 409,502 Leases receivable 457,286 — 3,233 460,519 Consumer loans 12,838 732 749 14,319 Total loans and leases receivable $ 4,456,296 $ 23,820 $ 75,686 $ 4,555,802 December 31, 2018 Real estate loans: Commercial property Retail $ 901,354 $ 16 $ 4,890 $ 906,260 Hospitality 821,542 168 8,969 830,679 Other 1,441,219 2,723 5,328 1,449,270 Total commercial property loans 3,164,115 2,907 19,187 3,186,209 Construction 71,583 — — 71,583 Residential property 500,424 — 139 500,563 Total real estate loans 3,736,122 2,907 19,326 3,758,355 Commercial and industrial loans: Commercial term 197,992 4,977 3,722 206,691 Commercial lines of credit 172,338 21,107 587 194,032 International loans 29,180 — — 29,180 Total commercial and industrial loans 399,510 26,084 4,309 429,903 Leases receivable 393,729 — 5,129 398,858 Consumer loans 12,454 191 779 13,424 Total loans and leases receivable $ 4,541,815 $ 29,182 $ 29,543 $ 4,600,540 The following is an aging analysis of loans and leases, 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 (in thousands) June 30, 2019 Real estate loans: Commercial property Retail $ 66 $ 153 $ 84 $ 303 $ 873,379 $ 873,682 Hospitality 941 147 1,020 2,108 853,745 855,853 Other 644 5 871 1,520 1,416,626 1,418,146 Total commercial property loans 1,651 305 1,975 3,931 3,143,750 3,147,681 Construction — — — — 65,454 65,454 Residential property 2,240 1,849 40 4,129 454,198 458,327 Total real estate loans 3,891 2,154 2,015 8,060 3,663,402 3,671,462 Commercial and industrial loans: Commercial term 253 233 16 502 194,810 195,312 Commercial lines of credit — — — — 186,103 186,103 International loans — — — — 28,087 28,087 Total commercial and industrial loans 253 233 16 502 409,000 409,502 Leases receivable 4,948 1,097 1,755 7,800 452,719 460,519 Consumer loans 82 — — 82 14,237 14,319 Total loans and leases receivable $ 9,174 $ 3,484 $ 3,786 $ 16,444 $ 4,539,358 $ 4,555,802 December 31, 2018 Real estate loans: Commercial property Retail $ 221 $ — $ 986 $ 1,207 $ 905,053 $ 906,260 Hospitality 65 1,203 1,893 3,161 827,518 830,679 Other 816 206 1,205 2,227 1,447,043 1,449,270 Total commercial property loans 1,102 1,409 4,084 6,595 3,179,614 3,186,209 Construction — — — — 71,583 71,583 Residential property 3,947 273 44 4,264 496,299 500,563 Total real estate loans 5,049 1,682 4,128 10,859 3,747,496 3,758,355 Commercial and industrial loans: Commercial term 334 49 1,117 1,500 205,191 206,691 Commercial lines of credit — — 587 587 193,445 194,032 International loans — — — — 29,180 29,180 Total commercial and industrial loans 334 49 1,704 2,087 427,816 429,903 Leases receivable 4,681 845 3,737 9,263 389,595 398,858 Consumer loans 146 — — 146 13,278 13,424 Total loans and leases receivable $ 10,210 $ 2,576 $ 9,569 $ 22,355 $ 4,578,185 $ 4,600,540 There were no loans and leases that were 90 days or more past due and accruing interest as of June 30, 2019 . As of December 31, 2018 , $4,000 of loans and leases were 90 days or more past due and accruing interest. Impaired Loans and Leases Loans and leases are considered impaired when the Bank will be unable to collect all interest and principal payments per the contractual terms of the loan and lease agreement, unless the loan is well-collateralized and in the process of collection. Loans are classified as Troubled Debt Restructurings (“TDRs”) because, due to the financial difficulties of the borrowers, we have granted concessions to the borrowers we would not otherwise consider; when current information or events make it unlikely to collect in full according to the contractual terms of the loan or lease agreements; there is a deterioration in the borrower’s financial condition that raises uncertainty as to timely collection of either principal or interest; or full payment of both interest and principal is in doubt according to the original contractual terms. We evaluate loan and lease impairment in accordance with GAAP. Impaired loans and leases are measured based on the present value of expected future cash flows discounted at the receivable's effective interest rate or, as a practical expedient, at the receivable's observable market price or the fair value of the collateral if the loan or lease is collateral dependent, less estimated costs to sell. If the estimated value of the impaired loan or lease is less than the recorded investment in the loan or lease, the deficiency is either charged off against the allowance for loan and lease losses or we establish a specific reserve in the allowance for loan and lease losses. Additionally, loans and leases that are considered impaired are specifically excluded from the quarterly migration analysis when determining the amount of the allowance for loan and lease losses required for the period. The allowance for collateral-dependent loans is determined by calculating the difference between the outstanding loan balance and the value of the collateral as determined by recent appraisals. The allowance for collateral-dependent loans varies from loan to loan based on the collateral coverage of the loan at the time of designation as nonperforming. We continue to monitor the collateral coverage, using recent appraisals, on these loans on a quarterly basis and adjust the allowance accordingly. The following tables provide information on impaired loans and leases, disaggregated by loan class, as of the dates indicated: Recorded Unpaid With No With an Related (in thousands) June 30, 2019 Real estate loans: Commercial property Retail $ 951 $ 996 $ 800 $ 151 $ 1 Hospitality 1,454 1,842 1,454 — — Other 8,093 8,432 7,884 209 15 Total commercial property loans 10,498 11,270 10,138 360 16 Construction 27,936 28,000 — 27,936 14,708 Residential property 1,451 1,596 1,451 — — Total real estate loans 39,885 40,866 11,589 28,296 14,724 Commercial and industrial loans 21,706 21,910 1,136 20,570 3,072 Leases receivable 3,233 3,292 873 2,360 662 Consumer loans 1,351 1,613 1,267 84 1 Total $ 66,175 $ 67,681 $ 14,865 $ 51,310 $ 18,459 December 31, 2018 Real estate loans: Commercial property Retail $ 2,166 $ 2,207 $ 1,894 $ 272 $ — Hospitality 4,282 5,773 4,032 250 — Other 7,525 8,016 6,253 1,272 1 Total commercial property loans 13,973 15,996 12,179 1,794 1 Residential property 788 929 788 — — Total real estate loans 14,761 16,925 12,967 1,794 1 Commercial and industrial loans 4,396 4,601 1,644 2,752 428 Leases receivable 5,129 5,162 1,256 3,873 1,383 Consumer loans 839 1,073 746 93 — Total $ 25,125 $ 27,761 $ 16,613 $ 8,512 $ 1,812 Three Months Ended Six Months Ended Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (in thousands) June 30, 2019 Real estate loans: Commercial property Retail $ 955 $ 11 $ 978 $ 27 Hospitality 1,570 80 2,468 152 Other 8,320 119 8,688 260 Total commercial property loans 10,845 210 12,134 439 Construction 18,667 249 9,333 249 Residential property 1,577 16 1,378 28 Total real estate loans 31,089 475 22,845 716 Commercial and industrial loans 22,623 191 24,883 601 Leases receivable 3,455 6 4,375 13 Consumer loans 1,501 24 1,512 48 Total $ 58,668 $ 696 $ 53,615 $ 1,378 June 30, 2018 Real estate loans: Commercial property Retail $ 1,728 $ 26 $ 1,568 $ 48 Hospitality 7,667 131 7,886 272 Other 7,562 133 7,702 243 Total commercial property loans 16,957 290 17,156 563 Residential property 2,260 27 2,420 57 Total real estate loans 19,217 317 19,576 620 Commercial and industrial loans 3,063 39 2,989 79 Leases receivable 5,188 12 4,896 22 Consumer loans 1,027 14 1,037 28 Total $ 28,495 $ 382 $ 28,498 $ 749 The following is a summary of interest foregone on impaired loans and leases for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (in thousands) Interest income that would have been recognized had impaired loans and leases performed in accordance with their original terms $ 1,120 $ 678 $ 2,009 $ 1,332 Less: Interest income recognized on impaired loans and leases (696 ) (382 ) (1,378 ) (749 ) Interest foregone on impaired loans and leases $ 424 $ 296 $ 631 $ 583 There were no commitments to lend additional funds to borrowers whose loans are included above. Nonaccrual Loans and Leases and Nonperforming Assets Loans and leases are placed on nonaccrual status when, in the opinion of management, the full timely collection of principal or interest is in doubt. Generally, the accrual of interest is discontinued when principal or interest payments become more than 90 days past due, unless management believes the receivable is adequately collateralized and in the process of collection. However, in certain instances, we may place a particular loan or lease receivable on nonaccrual status earlier, depending upon the individual circumstances surrounding the delinquency. When a receivable is placed on nonaccrual status, previously accrued but unpaid interest is reversed against current income. Subsequent collections of cash are applied as principal reductions when received, except when the ultimate collectability of principal is probable, in which case interest payments are credited to income. Nonaccrual loans and leases may be restored to accrual status when principal and interest payments become current and full repayment is expected. The following table details nonaccrual loans and leases, disaggregated by loan class, as of the dates indicated: June 30, 2019 December 31, 2018 (in thousands) Real estate loans: Commercial property Retail $ 800 $ 865 Hospitality 1,442 3,625 Other 6,587 1,641 Total commercial property loans 8,829 6,131 Construction 27,936 — Residential property 858 182 Total real estate loans 37,623 6,313 Commercial and industrial loans 21,457 3,337 Leases receivable 3,233 5,129 Consumer loans 718 746 Total nonaccrual loans and leases $ 63,031 $ 15,525 The following table details nonperforming assets as of the dates indicated: June 30, 2019 December 31, 2018 (in thousands) Nonaccrual loans and leases $ 63,031 $ 15,525 Loans and leases 90 days or more past due and still accruing — 4 Total nonperforming loans and leases 63,031 15,529 Other real estate owned (“OREO”) 507 663 Total nonperforming assets $ 63,538 $ 16,192 OREO is included in prepaid expenses and other assets in the accompanying Consolidated Balance Sheets as of June 30, 2019 and December 31, 2018 . Troubled Debt Restructurings The following table details TDRs loans as of June 30, 2019 and December 31, 2018 : Nonaccrual TDRs Accrual TDRs Deferral Deferral Reduction Extension Total Deferral Deferral Reduction Extension Total (in thousands) June 30, 2019 Real estate loans $ 934 $ 153 $ 28,083 $ 757 $ 29,927 $ 2,098 $ — $ — $ — $ 2,098 Commercial and industrial loans 250 160 12,743 334 13,487 — — 100 149 249 Consumer loans 718 — — — 718 549 — 84 — 633 Total $ 1,902 $ 313 $ 40,826 $ 1,091 $ 44,132 $ 2,647 $ — $ 184 $ 149 $ 2,980 December 31, 2018 Real estate loans $ 462 $ 1,423 $ 174 $ — $ 2,059 $ 3,345 $ — $ 1,148 $ 741 $ 5,234 Commercial and industrial loans 265 107 669 430 1,471 — 166 386 150 702 Consumer loans 746 — — — 746 — — 93 — 93 Total $ 1,473 $ 1,530 $ 843 $ 430 $ 4,276 $ 3,345 $ 166 $ 1,627 $ 891 $ 6,029 As of June 30, 2019 and December 31, 2018 , total TDRs were $47.1 million and $10.3 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. All TDRs are impaired and are individually evaluated for specific impairment 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. The allowance for loan and lease losses included $15.9 million of specific allowances at June 30, 2019 and $313,000 of specific allowances at December 31, 2018 relating to TDR loans. There were $30.3 million of real estate loans ( seven loans) and $12.7 million of commercial loans ( one loan) that were modified during the twelve month period ended June 30, 2019. None of these loans defaulted no r were charged off during the twelve month period ended June 30, 2019. The troubled-debt restructurings described above increased the allowance by $15.7 million during the twelve month period ended June 30, 2019. For the restructured loans on accrual status, we determined that, based on the financial capabilities of the borrowers at the time of the loan restructuring and the borrowers’ past performance in the payment of debt service under the previous loan terms, performance and collection under the revised terms are probable. |