Loans Receivable, Net | Loans Receivable, Net The detail of the loan portfolio as of March 31, 2017 and December 31, 2016 was as follows: March 31, December 31, (In thousands) Multi-family loans $ 7,795,974 7,459,131 Commercial real estate loans 4,630,407 4,445,194 Commercial and industrial loans 1,374,599 1,275,283 Construction loans 335,341 314,843 Total commercial loans 14,136,321 13,494,451 Residential mortgage loans 4,749,058 4,710,373 Consumer and other loans 611,226 596,922 Total loans excluding PCI loans 19,496,605 18,801,746 PCI loans 8,823 8,956 Net unamortized premiums and deferred loan costs (1) (13,245 ) (12,474 ) Allowance for loan losses (230,912 ) (228,373 ) Net loans $ 19,261,271 18,569,855 (1) Included in unamortized premiums and deferred loan costs are accretable purchase accounting adjustments in connection with loans acquired. Purchased Credit-Impaired Loans Purchased Credit-Impaired ("PCI") loans, are loans acquired at a discount that is due, in part, to credit quality. PCI loans are accounted for in accordance with ASC Subtopic 310-30 and are initially recorded at fair value as determined by the present value of expected future cash flows with no valuation allowance reflected in the allowance for loan losses. The following table presents changes in the accretable yield for PCI loans during the three months ended March 31, 2017 and 2016 : Three Months Ended March 31, 2017 2016 (In thousands) Balance, beginning of period $ 1,451 449 Accretion (44 ) (67 ) Net reclassification from non-accretable difference (1) — 1,221 Balance, end of period $ 1,407 1,603 (1) Reclassifications of the non-accretable difference to the accretable yield may occur subsequent to the loan acquisition dates due to increases in expected cash flows of the loans. An analysis of the allowance for loan losses is summarized as follows: Three Months Ended March 31, 2017 2016 (Dollars in thousands) Balance at beginning of the period $ 228,373 218,505 Loans charged off (3,005 ) (7,977 ) Recoveries 1,544 1,085 Net charge-offs (1,461 ) (6,892 ) Provision for loan losses 4,000 5,000 Balance at end of the period $ 230,912 216,613 The allowance for loan losses is the estimated amount considered necessary to cover credit losses inherent in the loan portfolio at the balance sheet date. The allowance is established through the provision for loan losses that is charged against income. In determining the allowance for loan losses, we make significant estimates and therefore, have identified the allowance as a critical accounting policy. The methodology for determining the allowance for loan losses is considered a critical accounting policy by management because of the high degree of judgment involved, the subjectivity of the assumptions used, and the potential for changes in the economic environment that could result in changes to the amount of the recorded allowance for loan losses. The allowance for loan losses has been determined in accordance with U.S. GAAP, under which we are required to maintain an allowance for probable losses at the balance sheet date. We are responsible for the timely and periodic determination of the amount of the allowance required. We believe that our allowance for loan losses is adequate to cover specifically identifiable losses, as well as estimated losses inherent in our portfolio for which certain losses are probable but not specifically identifiable. Loans acquired are marked to fair value on the date of acquisition with no valuation allowance reflected in the allowance for loan losses. In conjunction with the quarterly evaluation of the adequacy of the allowance for loan loss, the Company performs an analysis on acquired loans to determine whether or not there has been subsequent deterioration in relation to those loans. If deterioration has occurred, the Company will include these loans in its calculation of the allowance for loan loss. For the three months ended March 31, 2017 , the Company recorded charge-offs of $33,000 related to PCI loans acquired. Management performs a quarterly evaluation of the adequacy of the allowance for loan losses. The analysis of the allowance for loan losses has two components: specific and general allocations. Specific allocations are made for loans determined to be impaired. A loan is deemed to be impaired if it is a commercial loan with an outstanding balance greater than $1.0 million and on non-accrual status, loans modified in a troubled debt restructuring (“TDR”), and other commercial loans greater than $1.0 million if management has specific information that it is probable they will not collect all amounts due under the contractual terms of the loan agreement. Impairment is measured by determining the present value of expected future cash flows or, for collateral-dependent loans, the fair value of the collateral adjusted for market conditions and selling expenses. The general allocation is determined by segregating the remaining loans by type of loan, risk rating (if applicable) and payment history. In addition, the Company's residential portfolio is subdivided between fixed and adjustable rate loans as adjustable rate loans are deemed to be subject to more credit risk if interest rates rise. Reserves for each loan segment or the loss factors are generally determined based on the Company's historical loss experience over a look-back period determined to provide the appropriate amount of data to accurately estimate expected losses as of period end. Additionally, management assesses the loss emergence period for the expected losses of each loan segment and adjusts each historical loss factor accordingly. The loss emergence period is the estimated time from the date of a loss event (such as a personal bankruptcy) to the actual recognition of the loss (typically via the first full or partial loan charge-off), and is determined based upon a study of the Company's past loss experience by loan segment. The loss factors may also be adjusted to account for qualitative or environmental factors that are likely to cause estimated credit losses inherent in the portfolio to differ from historical loss experience. This evaluation is based on among other things, loan and delinquency trends, general economic conditions, credit concentrations, lending policies and procedures and industry trends, but is inherently subjective as it requires material estimates that may be susceptible to significant revisions based upon changes in economic and real estate market conditions. Actual loan losses may be different than the allowance for loan losses we have established which could have a material negative effect on our financial results. On a quarterly basis, management reviews the current status of various loan assets in order to evaluate the adequacy of the allowance for loan losses. In this evaluation process, specific loans are analyzed to determine their potential risk of loss. Loans determined to be impaired are evaluated for potential loss exposure. Any shortfall results in a recommendation of a specific allowance or charge-off if the likelihood of loss is evaluated as probable. To determine the adequacy of collateral on a particular loan, an estimate of the fair value of the collateral is based on the most current appraised value available for real property or a discounted cash flow analysis on a business. The appraised value for real property is then reduced to reflect estimated liquidation expenses. The allowance contains reserves identified as unallocated. These reserves reflect management's attempt to ensure that the overall allowance reflects a margin for imprecision and the uncertainty that is inherent in estimates of probable credit losses. Our lending emphasis has been the origination of multi-family loans, commercial real estate loans, commercial and industrial loans, one- to four-family residential mortgage loans secured by one- to four-family residential real estate, construction loans and consumer loans, the majority of which are home equity loans, home equity lines of credit and cash surrender value lending on life insurance contracts. These activities resulted in a concentration of loans secured by real estate property and businesses located in New Jersey and New York. Based on the composition of our loan portfolio, we believe the primary risks to our loan portfolio are increases in interest rates, a decline in the general economy, and declines in real estate market values in New Jersey, New York and surrounding states. Any one or combination of these events may adversely affect our loan portfolio resulting in increased delinquencies, loan losses and future levels of loan loss provisions. As a substantial amount of our loan portfolio is collateralized by real estate, appraisals of the underlying value of property securing loans are critical in determining the amount of the allowance required for specific loans. Assumptions for appraisal valuations are instrumental in determining the value of properties. Negative changes to appraisal assumptions could significantly impact the valuation of a property securing a loan and the related allowance determined. The assumptions supporting such appraisals are carefully reviewed to determine that the resulting values reasonably reflect amounts realizable on the related loans. For commercial real estate, multi-family and construction loans, the Company obtains an appraisal for all collateral dependent loans upon origination. An updated appraisal is obtained annually for loans rated substandard or worse with a balance of $500,000 or greater. An updated appraisal is obtained biennially for loans rated special mention with a balance of $2.0 million or greater. This is done in order to determine the specific reserve or charge off needed. As part of the allowance for loan loss process, the Company reviews each collateral dependent commercial real estate loan classified as non-accrual and/or impaired and assesses whether there has been an adverse change in the collateral value supporting the loan. The Company utilizes information from its commercial lending officers and its credit department and special assets department’s knowledge of changes in real estate conditions in our lending area to identify if possible deterioration of collateral value has occurred. Based on the severity of the changes in market conditions, management determines if an updated appraisal is warranted or if downward adjustments to the previous appraisal are warranted. If it is determined that the deterioration of the collateral value is significant enough to warrant ordering a new appraisal, an estimate of the downward adjustments to the existing appraised value is used in assessing if additional specific reserves are necessary until the updated appraisal is received. For homogeneous residential mortgage loans, the Company’s policy is to obtain an appraisal upon the origination of the loan and an updated appraisal in the event a loan becomes 90 days delinquent. Thereafter, the appraisal is updated every two years if the loan remains in non-performing status and the foreclosure process has not been completed. Management adjusts the appraised value of residential loans to reflect estimated selling costs and declines in the real estate market. Management believes the potential risk for outdated appraisals for impaired and other non-performing loans has been mitigated due to the fact that the loans are individually assessed to determine that the loan’s carrying value is not in excess of the fair value of the collateral. Loans are generally charged off after an analysis is completed which indicates that collectability of the full principal balance is in doubt. Although we believe we have established and maintained the allowance for loan losses at adequate levels, additions may be necessary if the current economic environment deteriorates. Management uses relevant information available; however, the level of the allowance for loan losses remains an estimate that is subject to significant judgment and short-term change. In addition, the Federal Deposit Insurance Corporation and the New Jersey Department of Banking and Insurance, as an integral part of their examination process, will periodically review our allowance for loan losses. Such agencies may require us to recognize adjustments to the allowance based on their judgments about information available to them at the time of their examination. The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of March 31, 2017 and December 31, 2016 : March 31, 2017 Multi- Family Loans Commercial Real Estate Loans Commercial and Industrial Loans Construction Loans Residential Mortgage Loans Consumer and Other Loans Unallocated Total (Dollars in thousands) Allowance for loan losses: Beginning balance-December 31, 2016 $ 95,561 52,796 43,492 11,653 19,831 2,850 2,190 228,373 Charge-offs (6 ) (419 ) (1,751 ) (100 ) (727 ) (2 ) — (3,005 ) Recoveries 280 55 72 — 1,117 20 — 1,544 Provision (5,752 ) 8,820 1,942 (859 ) (1,246 ) (98 ) 1,193 4,000 Ending balance-March 31, 2017 $ 90,083 61,252 43,755 10,694 18,975 2,770 3,383 230,912 Individually evaluated for impairment $ — — — — 1,676 41 — 1,717 Collectively evaluated for impairment 90,083 61,252 43,755 10,694 17,299 2,729 3,383 229,195 Loans acquired with deteriorated credit quality — — — — — — — — Balance at March 31, 2017 $ 90,083 61,252 43,755 10,694 18,975 2,770 3,383 230,912 Loans: Individually evaluated for impairment $ 1,379 6,748 1,656 — 26,824 583 — 37,190 Collectively evaluated for impairment 7,794,595 4,623,659 1,372,943 335,341 4,722,234 610,643 — 19,459,415 Loans acquired with deteriorated credit quality — 7,020 — — 1,471 332 — 8,823 Balance at March 31, 2017 $ 7,795,974 4,637,427 1,374,599 335,341 4,750,529 611,558 — 19,505,428 December 31, 2016 Multi- Family Loans Commercial Real Estate Loans Commercial and Industrial Loans Construction Loans Residential Mortgage Loans Consumer and Other Loans Unallocated Total (Dollars in thousands) Allowance for loan losses: Beginning balance-December 31, 2015 $ 88,223 46,999 40,585 6,794 31,443 3,155 1,306 218,505 Charge-offs (161 ) (455 ) (4,485 ) (52 ) (9,425 ) (419 ) — (14,997 ) Recoveries 1,885 689 541 267 1,631 102 — 5,115 Provision 5,614 5,563 6,851 4,644 (3,818 ) 12 884 19,750 Ending balance-December 31, 2016 $ 95,561 52,796 43,492 11,653 19,831 2,850 2,190 228,373 Individually evaluated for impairment $ — — — — 1,581 20 — 1,601 Collectively evaluated for impairment 95,561 52,796 43,492 11,653 18,250 2,830 2,190 226,772 Loans acquired with deteriorated credit quality — — — — — — — — Balance at December 31, 2016 $ 95,561 52,796 43,492 11,653 19,831 2,850 2,190 228,373 Loans: Individually evaluated for impairment $ 248 5,962 3,370 — 24,453 371 — 34,404 Collectively evaluated for impairment 7,458,883 4,439,232 1,271,913 314,843 4,685,920 596,551 — 18,767,342 Loans acquired with deteriorated credit quality — 7,106 — — 1,507 343 — 8,956 Balance at December 31, 2016 $ 7,459,131 4,452,300 1,275,283 314,843 4,711,880 597,265 — 18,810,702 The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. For non-homogeneous loans, such as commercial and commercial real estate loans the Company analyzes the loans individually by classifying the loans as to credit risk and assesses the probability of collection for each type of class. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk ratings: Pass - “Pass” assets are well protected by the current net worth and paying capacity of the obligor (or guarantors, if any) or by the fair value, less cost to acquire and sell, of any underlying collateral in a timely manner. Watch - A “Watch” asset has all the characteristics of a Pass asset but warrant more than the normal level of supervision. These loans may require more detailed reporting to management because some aspects of underwriting may not conform to policy or adverse events may have affected or could affect the cash flow or ability to continue operating profitably, provided, however, the events do not constitute an undue credit risk. Residential loans delinquent 30 - 59 days are considered watch if not already identified as impaired. Special Mention - A “Special Mention” asset has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the institution’s credit position at some future date. Special Mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. Residential loans delinquent 60 - 89 days are considered special mention if not already identified as impaired. Substandard - A “Substandard” asset is inadequately protected by the current worth and paying capacity of the obligor or by the collateral pledged, if any. Assets so classified must have a well-defined weakness, or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Residential loans delinquent 90 days or greater as well as those identified as impaired are considered substandard. Doubtful - An asset classified “Doubtful” has all the weaknesses inherent in one classified substandard with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable on the basis of currently known facts, conditions, and values. Loss - An asset or portion thereof, classified “Loss” is considered uncollectible and of such little value that its continuance on the institution’s books as an asset, without establishment of a specific valuation allowance or charge-off, is not warranted. This classification does not necessarily mean that an asset has no recovery or salvage value; but rather, there is much doubt about whether, how much, or when the recovery will occur. As such, it is not practical or desirable to defer the write-off. The following tables present the risk category of loans as of March 31, 2017 and December 31, 2016 by class of loans, excluding PCI loans: March 31, 2017 Pass Watch Special Mention Substandard Doubtful Loss Total (In thousands) Commercial loans: Multi-family $ 7,201,975 353,911 139,948 100,140 — — 7,795,974 Commercial real estate 4,021,849 397,567 96,352 114,639 — — 4,630,407 Commercial and industrial 924,256 420,606 24,242 5,495 — — 1,374,599 Construction 233,837 95,841 1,200 4,463 — — 335,341 Total commercial loans 12,381,917 1,267,925 261,742 224,737 — — 14,136,321 Residential mortgage 4,642,980 21,658 7,764 76,656 — — 4,749,058 Consumer and other 594,906 8,027 591 7,702 — — 611,226 Total $ 17,619,803 1,297,610 270,097 309,095 — — 19,496,605 December 31, 2016 Pass Watch Special Mention Substandard Doubtful Loss Total (In thousands) Commercial loans: Multi-family $ 6,961,809 276,858 165,948 54,516 — — 7,459,131 Commercial real estate 3,900,988 373,319 134,154 36,733 — — 4,445,194 Commercial and industrial 900,190 344,628 23,588 6,877 — — 1,275,283 Construction 230,630 76,773 3,200 4,240 — — 314,843 Total commercial loans 11,993,617 1,071,578 326,890 102,366 — — 13,494,451 Residential mortgage 4,600,611 21,873 10,239 77,650 — — 4,710,373 Consumer and other 583,140 5,627 719 7,436 — — 596,922 Total $ 17,177,368 1,099,078 337,848 187,452 — — 18,801,746 The following tables present the payment status of the recorded investment in past due loans as of March 31, 2017 and December 31, 2016 by class of loans, excluding PCI loans: March 31, 2017 30-59 Days 60-89 Days Greater than 90 Days Total Past Due Current Total Loans Receivable (In thousands) Commercial loans: Multi-family $ 14,702 — 227 14,929 7,781,045 7,795,974 Commercial real estate 38,964 8,570 5,109 52,643 4,577,764 4,630,407 Commercial and industrial 1,062 575 553 2,190 1,372,409 1,374,599 Construction — — — — 335,341 335,341 Total commercial loans 54,728 9,145 5,889 69,762 14,066,559 14,136,321 Residential mortgage 23,276 8,321 54,492 86,089 4,662,969 4,749,058 Consumer and other 8,027 591 7,122 15,740 595,486 611,226 Total $ 86,031 18,057 67,503 171,591 19,325,014 19,496,605 December 31, 2016 30-59 Days 60-89 Days Greater than 90 Days Total Past Due Current Total Loans Receivable (In thousands) Commercial loans: Multi-family $ 5,272 1,099 234 6,605 7,452,526 7,459,131 Commercial real estate 6,568 31,964 6,445 44,977 4,400,217 4,445,194 Commercial and industrial 864 885 2,971 4,720 1,270,563 1,275,283 Construction — — — — 314,843 314,843 Total commercial loans 12,704 33,948 9,650 56,302 13,438,149 13,494,451 Residential mortgage 24,052 10,930 58,119 93,101 4,617,272 4,710,373 Consumer and other 5,627 719 7,065 13,411 583,511 596,922 Total $ 42,383 45,597 74,834 162,814 18,638,932 18,801,746 The following table presents non-accrual loans, excluding PCI loans, at the dates indicated: March 31, 2017 December 31, 2016 # of loans Amount # of loans Amount (Dollars in thousands) Non-accrual: Multi-family 2 $ 473 2 $ 482 Commercial real estate 24 8,243 24 9,205 Commercial and industrial 4 2,209 8 4,659 Total commercial loans 30 10,925 34 14,346 Residential mortgage and consumer 470 76,158 478 79,928 Total non-accrual loans 500 $ 87,083 512 $ 94,274 Included in the non-accrual table above are TDR loans whose payment status is current but the Company has classified as non-accrual as the loans have not maintained their current payment status for six consecutive months under the restructured terms and therefore do not meet the criteria for accrual status. As of March 31, 2017 and December 31, 2016 , these loans are comprised of the following: March 31, 2017 December 31, 2016 # of loans Amount # of loans Amount (Dollars in thousands) Current TDR classified as non-accrual: Multi-family 1 $ 246 1 $ 248 Commercial real estate 3 509 1 63 Commercial and industrial 1 282 1 286 Total commercial loans 5 1,037 3 597 Residential mortgage and consumer 28 5,958 23 5,721 Total current TDR classified as non-accrual 33 $ 6,995 26 $ 6,318 The following table presents TDR loans which were also 30-89 days delinquent and classified as non-accrual at the dates indicated: March 31, 2017 December 31, 2016 # of loans Amount # of loans Amount (Dollars in thousands) TDR 30-89 days delinquent classified as non-accrual: Commercial real estate 2 $ 167 2 $ 169 Residential mortgage and consumer 11 2,173 14 2,869 Total current TDR classified as non-accrual 13 $ 2,340 16 $ 3,038 The Company has no loans past due 90 days or more delinquent that are still accruing interest. PCI loans are excluded from non-accrual loans, as they are recorded at fair value based on the present value of expected future cash flows. As of March 31, 2017 , PCI loans with a carrying value of $8.8 million included $7.5 million of which were current, none of which were 30 - 89 days delinquent and $1.3 million of which were 90 days or more delinquent. As of December 31, 2016 , PCI loans with a carrying value of $9.0 million included $7.7 million of which were current, none of which were 30-89 days delinquent and $1.3 million of which were 90 days or more delinquent. At March 31, 2017 and December 31, 2016 , loans meeting the Company’s definition of an impaired loan were primarily collateral dependent loans which totaled $37.2 million and $34.4 million , respectively, with allocations of the allowance for loan losses of $1.7 million and $1.6 million for the periods ending March 31, 2017 and December 31, 2016 , respectively. During the three months ended March 31, 2017 and 2016 , interest income received and recognized on these loans totaled $367,000 and $393,000 , respectively. The following tables present loans individually evaluated for impairment by portfolio segment as of March 31, 2017 and December 31, 2016 : March 31, 2017 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (In thousands) With no related allowance: Multi-family $ 1,379 1,387 — 1,395 22 Commercial real estate 6,748 10,143 — 6,744 86 Commercial and industrial 1,656 2,211 — 1,645 28 Construction — — — — — Total commercial loans 9,783 13,741 — 9,784 136 Residential mortgage and consumer 12,499 16,092 — 10,795 114 With an allowance recorded: Multi-family — — — — — Commercial real estate — — — — — Commercial and industrial — — — — — Construction — — — — — Total commercial loans — — — — — Residential mortgage and consumer 14,908 15,541 1,717 13,689 117 Total: Multi-family 1,379 1,387 — 1,395 22 Commercial real estate 6,748 10,143 — 6,744 86 Commercial and industrial 1,656 2,211 — 1,645 28 Construction — — — — — Total commercial loans 9,783 13,741 — 9,784 136 Residential mortgage and consumer 27,407 31,633 1,717 24,484 231 Total impaired loans $ 37,190 45,374 1,717 34,268 367 December 31, 2016 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (In thousands) With no related allowance: Multi-family $ 248 248 — 252 20 Commercial real estate 5,962 9,265 — 5,790 301 Commercial and industrial 3,370 3,972 — 3,953 169 Construction — — — — — Total commercial loans 9,580 13,485 — 9,995 490 Residential mortgage and consumer 11,030 14,565 — 9,899 483 With an allowance recorded: Multi-family — — — — — Commercial real estate — — — — — Commercial and industrial — — — — — Construction — — — — — Total commercial loans — — — — — Residential mortgage and consumer 13,794 14,382 1,601 13,689 479 Total: Multi-family 248 248 — 252 20 Commercial real estate 5,962 9,265 — 5,790 301 Commercial and industrial 3,370 3,972 — 3,953 169 Construction — — — — — Total commercial loans 9,580 13,485 — 9,995 490 Residential mortgage and consumer 24,824 28,947 1,601 23,588 962 Total impaired loans $ 34,404 42,432 1,601 33,583 1,452 The average recorded investment is the annual average calculated based upon the ending quarterly balances. The interest income recognized is the year to date interest income recognized on a cash basis. Troubled Debt Restructurings On a case-by-case basis, the Company may agree to modify the contractual terms of a borrower’s loan to remain competitive and assist customers who may be experiencing financial difficulty, as well as preserve the Company’s position in the loan. If the borrower is experiencing financial difficulties and a concession has been made at the time of such modification, the loan is classified as a TDR. Substantially all of our TDR loan modifications involve lowering the monthly payments on such loans through either a reduction in interest rate below a market rate, an extension of the term of the loan, or a combination of these two methods. These modifications rarely result in the forgiveness of principal or accrued interest. In addition, we frequently obtain additional collateral or guarantor support when modifying commercial loans. Restructured loans remain on non-accrual status until there has been a sustained period of repayment performance (generally six consecutive months of payments) and both principal and interest are deemed collectible. The following table presents the total TDR loans at March 31, 2017 and December 31, 2016 . There were three residential PCI loans that were classified as TDRs and are included in the table below at March 31, 2017 . There were three residential PCI loans that were classified as TDRs for the period ended December 31, 2016 . March 31, 2017 Accrual Non-accrual Total # of loans Amount # of loans Amount # of loans Amount (Dollars in thousands) Commercial loans: Multi-family — $ — 1 $ 246 1 $ 246 Commercial real estate — — 7 3,679 7 3,679 Commercial and industrial — — 2 1,656 2 1,656 Total commercial loans — — 10 5,581 10 5,581 Residential mortgage and consumer 47 12,243 65 15,164 112 27,407 Total 47 $ 12,243 75 $ 20,745 122 $ 32,988 December 31, 2016 Accrual Non-accrual Total # of loans Amount # of loans Amount # of loans Amount (Dollars in thousands) Commercial loans: Multi-family — $ — 1 $ 248 1 $ 248 Commercial real estate 2 352 4 3,240 6 3,592 Commercial and industrial — — 2 1,688 2 1,688 Total commercial loans 2 352 7 5,176 9 5,528 Residential mortgage and consumer 40 9,093 61 15,731 101 24,824 Total 42 $ 9,445 68 $ 20,907 110 $ 30,352 The following table presents information about TDRs that occurred during the three months ended March 31, 2017 and 2016 : Three Months Ended March 31, 2017 2016 Number of Loans Pre-modification Recorded Investment Post- modification Recorded Investment Number of Loans Pre-modification Recorded Investment Post- modification Recorded Investment (Dollars in thousands) Troubled Debt Restructurings: Commercial real estate 1 166 166 2 442 442 Residential mortgage and consumer 13 2,879 2,779 7 958 958 Post-modification recorded investment represents the net book balance immediately following modification. All TDRs are impaired loans, which are individually evaluated for impairment, as discussed above. Collateral dependent impaired loans classified as TDRs were written down to the estimated fair value of the collateral. There were charge-offs of $100,000 for collateral dependent TDRs during the three months ended March 31, 2017 . There were no charge-offs for collateral dependent TDRs during the three months ended March 31, 2016 . The allowance for loan losses associated with the TDRs presented in the above tables totaled $1.7 million and $1.6 million at March 31, 2017 and December 31, 2016 , respectively. Residential mortgage loan modifications primarily involved the reduction in loan interest rate and extension of loan maturity dates. All residential loans deemed to be TDRs were modified to reflect a reduction in interest rates to current market rates. Several residential TDRs include step up interest rates in their modified terms which will impact their weighted average yield in the future. The commercial loan modification which qualified as a TDR had its maturity extended. The following table presents information about pre and post modification interest yield for troubled debt restructurings which occurred during the three months ended March 31, 2017 and 2016 : Three Months Ended March 31, 2017 2016 Number of Loans Pre-modification Interest Yield Post- modification Interest Yield Number of Loans Pre-modification Interest Yield Post- modification Interest Yield Troubled Debt Restructurings: Commercial real estate 1 5.50 % 5.50 % 2 4.12 % 4.44 % Residential mortgage and consumer 13 4.27 % 3.54 % 7 6.05 % 3.99 % Payment defaults for loans modified as a TDR in the previous 12 months to March 31, 2017 consisted of 9 residential loans and 2 commercial real estate loans with a recorded investment of $1.6 million and $498,000 , respectively, at March 31, 2017 . Payment defaults for loans modified as TDRs in the previous 12 months to March 31, 2016 consisted of 4 residential loans, 3 commercial real estate loans and 1 construction loan with a recorded investment of $880,000 , $246,000 and $132,000 , respectively, at March 31, 2016 . |