Loans and Leases | Loans and Leases Loans and Leases Receivable Loans and leases receivable consisted of the following as of the dates indicated: September 30, 2019 December 31, 2018 (in thousands) Real estate loans: Commercial property Retail $ 865,050 $ 906,260 Hospitality 850,869 830,679 Other (1) 1,417,062 1,449,270 Total commercial property loans 3,132,981 3,186,209 Construction 76,770 71,583 Residential property 436,576 500,563 Total real estate loans 3,646,327 3,758,355 Commercial and industrial loans: Commercial term 188,090 206,691 Commercial lines of credit 219,400 194,032 International loans 33,719 29,180 Total commercial and industrial loans 441,209 429,903 Leases receivable 467,777 398,858 Consumer loans (2) 14,524 13,424 Loans and leases receivable 4,569,837 4,600,540 Allowance for loan and lease losses (50,712 ) (31,974 ) Loans and leases receivable, net $ 4,519,125 $ 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 $8.6 million and $10.3 million as of September 30, 2019 and December 31, 2018 , respectively. Accrued interest on loans and leases receivable was $10.2 million and $10.9 million at September 30, 2019 and December 31, 2018 , respectively. At September 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 September 30, 2019 and 2018 : SBA Loans Held for Sale Real Estate Commercial and Industrial Total (in thousands) 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 September 30, 2018 Balance at beginning of period $ 2,785 $ 2,564 $ 5,349 Originations 5,408 13,469 18,877 Sales (6,453 ) (13,299 ) (19,752 ) Principal paydowns and amortization (3 ) (16 ) (19 ) Balance at end of period $ 1,737 $ 2,718 $ 4,455 The following is the activity for SBA loans held for sale for the nine months ended September 30, 2019 and 2018 : SBA Loans Held for Sale Real Estate Commercial and Industrial Total (in thousands) 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 paydowns and amortization (1 ) (14 ) (15 ) Balance at end of period $ 2,622 $ 3,976 $ 6,598 September 30, 2018 Balance at beginning of period $ 3,746 $ 2,648 $ 6,394 Originations 25,996 30,248 56,244 Sales (28,000 ) (30,043 ) (58,043 ) Principal paydowns and amortization (5 ) (135 ) (140 ) Balance at end of period $ 1,737 $ 2,718 $ 4,455 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 As of and for the Nine Months Ended 2019 2018 2019 2018 (in thousands) Balance at beginning of period $ 49,386 $ 31,818 $ 31,974 $ 31,043 Loans and leases charged off (916 ) (1,246 ) (3,549 ) (3,535 ) Recoveries on loans and leases previously charged off 640 904 2,869 3,219 Net (charge-offs) recoveries (276 ) (342 ) (680 ) (316 ) Loan and lease loss provision 1,602 200 19,418 949 Balance at end of period $ 50,712 $ 31,676 $ 50,712 $ 31,676 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 September 30, 2019 and 2018 : Real Estate Commercial and Industrial Leases Receivable Consumer Unallocated Total (in thousands) As of and for the Three Months Ended September 30, 2019 Allowance for loan and lease losses on loans and leases: Beginning balance $ 34,004 $ 9,235 6,068 $ 79 $ — $ 49,386 Less loans and leases charged off (17 ) (244 ) (653 ) (2 ) — (916 ) Recoveries on loans and leases previously charged off 142 381 117 — — 640 Loan and lease loss provision 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 and leases 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 Real Estate Commercial and Industrial Leases Receivable Consumer Unallocated Total (in thousands) As of and for the Three Months Ended September 30, 2018 Allowance for loan and lease losses on loans and leases: Beginning balance $ 17,916 $ 7,120 6,649 $ 109 $ 24 $ 31,818 Less loans and leases charged off (220 ) (232 ) (794 ) — — (1,246 ) Recoveries on loans and leases previously charged off 577 237 90 — — 904 Loan and lease loss provision (184 ) (38 ) 446 — (24 ) 200 Ending balance $ 18,089 $ 7,087 $ 6,391 $ 109 $ — $ 31,676 Individually evaluated for impairment $ 2,428 $ 631 $ 1,763 $ — $ — $ 4,822 Collectively evaluated for impairment $ 15,661 $ 6,456 $ 4,628 $ 109 $ — $ 26,854 Loans and leases receivable: $ 3,792,350 $ 396,383 $ 379,455 $ 14,695 $ — $ 4,582,883 Individually evaluated for impairment $ 20,596 $ 3,767 $ 5,093 $ 881 $ — $ 30,337 Collectively evaluated for impairment $ 3,771,754 $ 392,616 $ 374,362 $ 13,814 $ — $ 4,552,546 The following table details the information on the allowance for loan and lease losses by portfolio segment as of and for the nine months ended September 30, 2019 and 2018 : Real Estate Commercial and Industrial Leases Receivable Consumer Unallocated Total (in thousands) As of and for the Nine Months Ended September 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 (131 ) (939 ) (2,479 ) (1 ) 1 (3,549 ) Recoveries on loans and leases previously charged off 1,704 853 312 — — 2,869 Loan and lease loss provision 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 and leases 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 Real Estate Commercial and Industrial Leases Receivable Consumer Unallocated Total (in thousands) As of and for the Nine Months Ended 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 (1,249 ) (597 ) (1,689 ) — — (3,535 ) Recoveries on loans and leases previously charged off 1,833 1,170 214 2 — 3,219 Loan and lease loss provision 493 (886 ) 1,587 (15 ) (230 ) 949 Ending balance $ 18,089 $ 7,087 $ 6,391 $ 109 $ — $ 31,676 Individually evaluated for impairment $ 2,428 $ 631 $ 1,763 $ — $ — $ 4,822 Collectively evaluated for impairment $ 15,661 $ 6,456 $ 4,628 $ 109 $ — $ 26,854 Loans and leases receivable: $ 3,792,350 $ 396,383 $ 379,455 $ 14,695 $ — $ 4,582,883 Individually evaluated for impairment $ 20,596 $ 3,767 $ 5,093 $ 881 $ — $ 30,337 Collectively evaluated for impairment $ 3,771,754 $ 392,616 $ 374,362 $ 13,814 $ — $ 4,552,546 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 September 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) September 30, 2019 Real estate loans: Commercial property Retail $ 853,986 $ 3,509 $ 7,555 $ 865,050 Hospitality 844,085 2,908 3,876 850,869 Other 1,391,226 5,015 20,821 1,417,062 Total commercial property loans 3,089,297 11,432 32,252 3,132,981 Construction 40,407 8,917 27,446 76,770 Residential property 434,980 796 800 436,576 Total real estate loans 3,564,684 21,145 60,498 3,646,327 Commercial and industrial loans: Commercial term 173,947 293 13,850 188,090 Commercial lines of credit 213,958 5,242 200 219,400 International loans 32,569 — 1,150 33,719 Total commercial and industrial loans 420,474 5,535 15,200 441,209 Leases receivable 463,474 — 4,303 467,777 Consumer loans 13,071 720 733 14,524 Total loans and leases receivable $ 4,461,703 $ 27,400 $ 80,734 $ 4,569,837 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) September 30, 2019 Real estate loans: Commercial property Retail $ 117 $ 142 $ — $ 259 $ 864,791 $ 865,050 Hospitality — — 138 138 850,731 850,869 Other 39 (4 ) — 35 1,417,027 1,417,062 Total commercial property loans 156 138 138 432 3,132,549 3,132,981 Construction — — — — 76,770 76,770 Residential property 2,097 1,290 545 3,932 432,644 436,576 Total real estate loans 2,253 1,428 683 4,364 3,641,963 3,646,327 Commercial and industrial loans: Commercial term 368 124 121 613 187,477 188,090 Commercial lines of credit — 95 — 95 219,305 219,400 International loans — — — — 33,719 33,719 Total commercial and industrial loans 368 219 121 708 440,501 441,209 Leases receivable 4,725 1,279 1,881 7,885 459,892 467,777 Consumer loans — — — — 14,524 14,524 Total loans and leases receivable $ 7,346 $ 2,926 $ 2,685 $ 12,957 $ 4,556,880 $ 4,569,837 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 As of September 30, 2019 and December 31, 2018 , there were $544,000 and $4,000 , respectively, of loans and leases that 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) September 30, 2019 Real estate loans: Commercial property Retail $ 1,136 $ 1,217 $ 705 $ 431 $ 32 Hospitality 1,404 1,833 1,167 237 27 Other 16,536 16,931 16,358 178 13 Total commercial property loans 19,076 19,981 18,230 846 72 Construction 27,446 28,000 — 27,446 14,709 Residential property 1,449 1,584 1,412 38 — Total real estate loans 47,971 49,565 19,642 28,330 14,781 Commercial and industrial loans 13,692 14,071 — 13,692 1,270 Leases receivable 4,303 4,340 474 3,828 1,049 Consumer loans 1,325 1,601 1,245 79 1 Total $ 67,291 $ 69,577 $ 21,361 $ 45,929 $ 17,101 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 Nine Months Ended Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (in thousands) September 30, 2019 Real estate loans: Commercial property Retail $ 1,168 $ 6 $ 1,041 $ 11 Hospitality 1,499 — 2,145 — Other 10,208 26 9,194 167 Total commercial property loans 12,875 32 12,380 178 Construction 27,674 — 15,447 249 Residential property 1,552 10 1,436 29 Total real estate loans 42,101 42 29,263 456 Commercial and industrial loans 13,892 15 21,220 506 Leases receivable 4,543 14 4,431 27 Consumer loans 1,482 9 1,502 29 Total $ 62,018 $ 80 $ 56,416 $ 1,018 September 30, 2018 Real estate loans: Commercial property Retail $ 2,671 $ 93 $ 1,936 $ 141 Hospitality 7,146 104 7,639 376 Other 8,659 187 8,021 430 Total commercial property loans 18,476 384 17,596 947 Residential property 1,966 23 2,269 80 Total real estate loans 20,442 407 19,865 1,027 Commercial and industrial loans 3,819 40 3,266 119 Leases receivable 5,424 11 5,072 33 Consumer loans 1,018 17 1,031 45 Total $ 30,703 $ 475 $ 29,234 $ 1,224 The following is a summary of interest foregone on impaired loans and leases for the periods indicated: Three Months Ended September 30, Nine Months Ended September 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 $ 916 $ 819 $ 2,407 $ 2,150 Less: Interest income recognized on impaired loans and leases (80 ) (475 ) (1,018 ) (1,224 ) Interest foregone on impaired loans and leases $ 836 $ 344 $ 1,389 $ 926 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: September 30, 2019 December 31, 2018 (in thousands) Real estate loans: Commercial property Retail $ 986 $ 865 Hospitality 1,404 3,625 Other 15,067 1,641 Total commercial property loans 17,457 6,131 Construction 27,446 — Residential property 838 182 Total real estate loans 45,741 6,313 Commercial and industrial loans 13,447 3,337 Leases receivable 4,303 5,129 Consumer loans 703 746 Total nonaccrual loans and leases $ 64,194 $ 15,525 The following table details nonperforming assets as of the dates indicated: September 30, 2019 December 31, 2018 (in thousands) Nonaccrual loans and leases $ 64,194 $ 15,525 Loans and leases 90 days or more past due and still accruing 544 4 Total nonperforming loans and leases 64,738 15,529 Other real estate owned (“OREO”) 330 663 Total nonperforming assets $ 65,068 $ 16,192 OREO is included in prepaid expenses and other assets in the accompanying Consolidated Balance Sheets as of September 30, 2019 and December 31, 2018 . Troubled Debt Restructurings The following table details TDRs loans as of September 30, 2019 and December 31, 2018 : Nonaccrual TDRs Accrual TDRs Deferral Deferral Reduction Extension Total Deferral Deferral Reduction Extension Total (in thousands) September 30, 2019 Real estate loans $ 1,927 $ 142 $ 28,141 $ 13,926 $ 44,136 $ 2,081 $ — $ — $ — $ 2,081 Commercial and industrial loans — 156 12,527 323 13,006 — 36 83 127 246 Consumer loans 703 — — — 703 542 — 79 — 621 Total $ 2,630 $ 298 $ 40,668 $ 14,249 $ 57,845 $ 2,623 $ 36 $ 162 $ 127 $ 2,948 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 September 30, 2019 and December 31, 2018 , total TDRs were $60.8 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 September 30, 2019 and $313,000 of specific allowances at December 31, 2018 relating to TDR loans. There were $44.0 million of commercial real estate loans ( eight loans), $12.6 million of commercial loans ( two loans) and one consumer loan for $0.5 million that were modified during the twelve-month period ended September 30, 2019. None of these loans defaulted no r were charged off subsequent to their restructuring during the twelve-month period ended September 30, 2019. The troubled debt restructurings described above increased the allowance by $15.7 million during the twelve-month period ended September 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. |