| Loans Receivable, Net | Loans Receivable, Net The detail of the loan portfolio as of June 30, 2018 and December 31, 2017 was as follows: June 30, December 31, (In thousands) Multi-family loans $ 7,903,469 7,802,835 Commercial real estate loans 4,648,024 4,541,347 Commercial and industrial loans 2,147,430 1,625,375 Construction loans 270,892 416,883 Total commercial loans 14,969,815 14,386,440 Residential mortgage loans 5,139,661 5,025,266 Consumer and other loans 667,911 670,820 Total loans excluding PCI loans 20,777,387 20,082,526 PCI loans 7,679 8,322 Deferred fees and premiums, net (1) (17,141 ) (7,778 ) Allowance for loan losses (230,838 ) (230,969 ) Net loans $ 20,537,087 19,852,101 (1) Included in deferred fees and premiums are accretable purchase accounting adjustments in connection with loans acquired. Allowance for Loan Losses An analysis of the allowance for loan losses is summarized as follows: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (Dollars in thousands) Balance at beginning of the period $ 231,144 230,912 230,969 228,373 Loans charged off (7,036 ) (8,492 ) (14,143 ) (11,497 ) Recoveries 2,730 1,608 7,512 3,152 Net charge-offs (4,306 ) (6,884 ) (6,631 ) (8,345 ) Provision for loan losses 4,000 6,000 6,500 10,000 Balance at end of the period $ 230,838 230,028 230,838 230,028 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 losses, the Company performs an analysis on acquired loans to determine whether or not an allowance should be ascribed to those 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. For the six months ended June 30, 2018 and 2017 , the Company recorded charge-offs of $257,000 and $87,000 , respectively, 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, industry trends and lending and credit management policies and procedures, 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 provide for the 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. The Company obtains an appraisal for all commercial loans that are collateral dependent 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 losses process, the Company reviews each collateral dependent commercial 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 June 30, 2018 and December 31, 2017 : June 30, 2018 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, 2017 $ 81,469 56,137 54,563 11,609 21,835 3,099 2,257 230,969 Charge-offs (442 ) (5,844 ) (3,369 ) — (3,727 ) (761 ) — (14,143 ) Recoveries — 716 6,203 — 567 26 — 7,512 Provision 3,000 3,914 432 (4,682 ) 3,453 775 (392 ) 6,500 Ending balance-June 30, 2018 $ 84,027 54,923 57,829 6,927 22,128 3,139 1,865 230,838 Individually evaluated for impairment $ — — — — 2,151 71 — 2,222 Collectively evaluated for impairment 84,027 54,923 57,829 6,927 19,977 3,068 1,865 228,616 Loans acquired with deteriorated credit quality — — — — — — — — Balance at June 30, 2018 $ 84,027 54,923 57,829 6,927 22,128 3,139 1,865 230,838 Loans: Individually evaluated for impairment $ 16,304 11,198 25,172 — 26,698 600 — 79,972 Collectively evaluated for impairment 7,887,165 4,636,826 2,122,258 270,892 5,112,963 667,311 — 20,697,415 Loans acquired with deteriorated credit quality — 6,568 — — 895 216 — 7,679 Balance at June 30, 2018 $ 7,903,469 4,654,592 2,147,430 270,892 5,140,556 668,127 — 20,785,066 December 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 ) (8,072 ) (5,656 ) (100 ) (4,875 ) (500 ) — (19,209 ) Recoveries 1,677 549 200 — 2,816 313 — 5,555 Provision (15,763 ) 10,864 16,527 56 4,063 436 67 16,250 Ending balance-December 31, 2017 $ 81,469 56,137 54,563 11,609 21,835 3,099 2,257 230,969 Individually evaluated for impairment $ — — — — 1,678 97 — 1,775 Collectively evaluated for impairment 81,469 56,137 54,563 11,609 20,157 3,002 2,257 229,194 Loans acquired with deteriorated credit quality — — — — — — — — Balance at December 31, 2017 $ 81,469 56,137 54,563 11,609 21,835 3,099 2,257 230,969 Loans: Individually evaluated for impairment $ 14,776 29,736 8,989 — 26,376 879 — 80,756 Collectively evaluated for impairment 7,788,059 4,511,611 1,616,386 416,883 4,998,890 669,941 — 20,001,770 Loans acquired with deteriorated credit quality — 6,754 — — 1,251 317 — 8,322 Balance at December 31, 2017 $ 7,802,835 4,548,101 1,625,375 416,883 5,026,517 671,137 — 20,090,848 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 warrants 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 and consumer 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 and consumer 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 and consumer 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 June 30, 2018 and December 31, 2017 by class of loans, excluding PCI loans: June 30, 2018 Pass Watch Special Mention Substandard Doubtful Loss Total (In thousands) Commercial loans: Multi-family $ 6,766,965 849,602 133,539 153,363 — — 7,903,469 Commercial real estate 3,827,574 543,577 120,111 156,762 — — 4,648,024 Commercial and industrial 1,518,185 464,629 88,129 76,487 — — 2,147,430 Construction 193,647 60,092 16,892 261 — — 270,892 Total commercial loans 12,306,371 1,917,900 358,671 386,873 — — 14,969,815 Residential mortgage 5,045,925 13,098 8,941 71,697 — — 5,139,661 Consumer and other 654,401 8,087 615 4,808 — — 667,911 Total $ 18,006,697 1,939,085 368,227 463,378 — — 20,777,387 December 31, 2017 Pass Watch Special Mention Substandard Doubtful Loss Total (In thousands) Commercial loans: Multi-family $ 6,791,999 702,384 154,125 154,327 — — 7,802,835 Commercial real estate 3,751,790 528,179 105,089 156,289 — — 4,541,347 Commercial and industrial 1,102,304 443,669 37,944 41,458 — — 1,625,375 Construction 272,882 109,252 34,454 295 — — 416,883 Total commercial loans 11,918,975 1,783,484 331,612 352,369 — — 14,386,440 Residential mortgage 4,926,002 14,272 7,749 77,243 — — 5,025,266 Consumer and other 657,515 6,270 521 6,514 — — 670,820 Total $ 17,502,492 1,804,026 339,882 436,126 — — 20,082,526 The following tables present the payment status of the recorded investment in past due loans as of June 30, 2018 and December 31, 2017 by class of loans, excluding PCI loans: June 30, 2018 30-59 Days 60-89 Days Greater than 90 Days Total Past Due Current Total Loans Receivable (In thousands) Commercial loans: Multi-family $ 30,131 — 2,759 32,890 7,870,579 7,903,469 Commercial real estate 8,896 — 9,119 18,015 4,630,009 4,648,024 Commercial and industrial 2,947 2,087 14,913 19,947 2,127,483 2,147,430 Construction — — 261 261 270,631 270,892 Total commercial loans 41,974 2,087 27,052 71,113 14,898,702 14,969,815 Residential mortgage 13,881 9,186 49,689 72,756 5,066,905 5,139,661 Consumer and other 8,088 615 4,210 12,913 654,998 667,911 Total $ 63,943 11,888 80,951 156,782 20,620,605 20,777,387 December 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 $ 7,263 7,652 203 15,118 7,787,717 7,802,835 Commercial real estate 19,355 778 11,519 31,652 4,509,695 4,541,347 Commercial and industrial 4,855 — 75 4,930 1,620,445 1,625,375 Construction — 295 — 295 416,588 416,883 Total commercial loans 31,473 8,725 11,797 51,995 14,334,445 14,386,440 Residential mortgage 15,191 8,739 54,900 78,830 4,946,436 5,025,266 Consumer and other 6,357 521 5,755 12,633 658,187 670,820 Total $ 53,021 17,985 72,452 143,458 19,939,068 20,082,526 The following table presents non-accrual loans, excluding PCI loans, at the dates indicated: June 30, 2018 December 31, 2017 # of loans Amount # of loans Amount (Dollars in thousands) Non-accrual: Multi-family 9 $ 19,515 5 $ 14,978 Commercial real estate 36 16,685 37 34,043 Commercial and industrial 13 28,949 11 9,989 Construction 1 261 1 295 Total commercial loans 59 65,410 54 59,305 Residential mortgage and consumer 375 69,220 427 76,422 Total non-accrual loans 434 $ 134,630 481 $ 135,727 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 June 30, 2018 and December 31, 2017 , these loans are comprised of the following: June 30, 2018 December 31, 2017 # of loans Amount # of loans Amount (Dollars in thousands) TDR with payment status current classified as non-accrual: Commercial real estate — $ — 1 $ 10 Commercial and industrial 3 9,540 — — Residential mortgage and consumer 28 3,713 24 4,103 Total TDR with payment status current classified as non-accrual 31 $ 13,253 25 $ 4,113 The following table presents TDR loans which were also 30-89 days delinquent and classified as non-accrual at the dates indicated: June 30, 2018 December 31, 2017 # of loans Amount # of loans Amount (Dollars in thousands) TDR 30-89 days delinquent classified as non-accrual: Multi-family — $ — 1 $ 918 Commercial real estate 1 49 2 14,321 Total commercial loans 1 49 3 15,239 Residential mortgage and consumer 6 1,025 13 1,995 Total TDR 30-89 days delinquent classified as non-accrual 7 $ 1,074 16 $ 17,234 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 June 30, 2018 , PCI loans with a carrying value of $7.7 million included $7.0 million of which were current, $206,000 of which were 30 - 89 days delinquent and $509,000 of which were 90 days or more delinquent. As of December 31, 2017 , PCI loans with a carrying value of $8.3 million included $7.1 million of which were current, $203,000 of which were 30 - 89 days delinquent and $1.0 million of which were 90 days or more delinquent. At June 30, 2018 and December 31, 2017 , loans meeting the Company’s definition of an impaired loan were primarily collateral dependent loans which totaled $80.0 million and $80.8 million , respectively, with allocations of the allowance for loan losses of $2.2 million and $1.8 million for the periods ending June 30, 2018 and December 31, 2017 , respectively. During the six months ended June 30, 2018 and 2017 , interest income received and recognized on these loans totaled $602,000 and $600,000 , respectively. The following tables present loans individually evaluated for impairment by portfolio segment as of June 30, 2018 and December 31, 2017 : June 30, 2018 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (In thousands) With no related allowance: Multi-family $ 16,304 16,707 — 16,312 267 Commercial real estate 11,198 19,361 — 11,500 44 Commercial and industrial 25,172 32,399 — 24,642 115 Construction — — — — — Total commercial loans 52,674 68,467 — 52,454 426 Residential mortgage and consumer 11,088 15,077 — 12,008 57 With an allowance recorded: Multi-family — — — — — Commercial real estate — — — — — Commercial and industrial — — — — — Construction — — — — — Total commercial loans — — — — — Residential mortgage and consumer 16,210 16,879 2,222 15,290 119 Total: Multi-family 16,304 16,707 — 16,312 267 Commercial real estate 11,198 19,361 — 11,500 44 Commercial and industrial 25,172 32,399 — 24,642 115 Construction — — — — — Total commercial loans 52,674 68,467 — 52,454 426 Residential mortgage and consumer 27,298 31,956 2,222 27,298 176 Total impaired loans $ 79,972 100,423 2,222 79,752 602 December 31, 2017 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (In thousands) With no related allowance: Multi-family $ 14,776 14,819 — 14,365 249 Commercial real estate 29,736 37,288 — 29,974 404 Commercial and industrial 8,989 12,008 — 8,681 28 Construction — — — — — Total commercial loans 53,501 64,115 — 53,020 681 Residential mortgage and consumer 12,357 16,236 — 12,100 430 With an allowance recorded: Multi-family — — — — — Commercial real estate — — — — — Commercial and industrial — — — — — Construction — — — — — Total commercial loans — — — — — Residential mortgage and consumer 14,898 15,461 1,775 14,767 386 Total: Multi-family 14,776 14,819 — 14,365 249 Commercial real estate 29,736 37,288 — 29,974 404 Commercial and industrial 8,989 12,008 — 8,681 28 Construction — — — — — Total commercial loans 53,501 64,115 — 53,020 681 Residential mortgage and consumer 27,255 31,697 1,775 26,867 816 Total impaired loans $ 80,756 95,812 1,775 79,887 1,497 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 tables present the total TDR loans at June 30, 2018 and December 31, 2017 . There were five residential PCI loans that were classified as TDRs for the period ended June 30, 2018 . There were four residential PCI loans that were classified as TDRs for the period ended December 31, 2017 . June 30, 2018 Accrual Non-accrual Total # of loans Amount # of loans Amount # of loans Amount (Dollars in thousands) Commercial loans: Multi-family — $ — 1 $ 904 1 $ 904 Commercial real estate — — 3 634 3 634 Commercial and industrial 1 570 4 10,765 5 11,335 Total commercial loans 1 570 8 12,303 9 12,873 Residential mortgage and consumer 55 12,215 73 15,085 128 27,300 Total 56 $ 12,785 81 $ 27,388 137 $ 40,173 December 31, 2017 Accrual Non-accrual Total # of loans Amount # of loans Amount # of loans Amount (Dollars in thousands) Commercial loans: Multi-family — $ — 1 $ 918 1 $ 918 Commercial real estate — — 4 14,489 4 14,489 Commercial and industrial — — 1 1,287 1 1,287 Total commercial loans — — 6 16,694 6 16,694 Residential mortgage and consumer 49 10,957 71 16,298 120 27,255 Total 49 $ 10,957 77 $ 32,992 126 $ 43,949 The following tables present information about TDRs that occurred during the three and six months ended June 30, 2018 and 2017 : Three Months Ended June 30, 2018 2017 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) Commercial real estate — $ — $ — 2 $ 20,059 $ 15,621 Commercial and industrial 2 9,536 9,536 — — — Residential mortgage and consumer 6 788 788 4 372 372 Six Months Ended June 30, 2018 2017 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) Commercial real estate 2 $ 788 $ 616 3 $ 20,225 $ 15,787 Commercial and industrial 3 9,971 9,971 — — — Residential mortgage and consumer 12 1,500 1,500 17 3,251 3,251 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 $42,000 and $214,000 for collateral dependent TDRs during the three and six months ended June 30, 2018 . There were charge-offs of $4.4 million and $4.5 million for collateral dependent TDRs during the three and six months ended June 30, 2017 . The allowance for loan losses associated with the TDRs presented in the above tables totaled $2.2 million and $1.8 million at June 30, 2018 and December 31, 2017 , respectively. Residential mortgage loan modifications generally involve the reduction in loan interest rate and extension of loan maturity dates and also may include step up interest rates in their modified terms which will impact their weighted average yield in the future. All residential loans deemed to be TDRs were modified to reflect a reduction in interest rates to current market rates. The commercial loan modifications which qualified as TDRs had their maturity extended as well as the reduction in loan interest rate. The following tables present information about pre and post modification interest yield for TDRs which occurred during the three and six months ended June 30, 2018 and 2017 : Three Months Ended June 30, 2018 2017 Number of Loans Pre-modification Interest Yield Post- modification Interest Yield Number of Loans Pre-modification Interest Yield Post- modification Interest Yield Commercial real estate — — % — % 2 4.67 % 4.67 % Commercial and industrial 2 6.07 % 6.07 % — — % — % Residential mortgage and consumer 6 4.85 % 3.17 % 4 5.03 % 3.94 % Six Months Ended June 30, 2018 2017 Number of Loans Pre-modification Interest Yield Post- modification Interest Yield Number of Loans Pre-modification Interest Yield Post- modification Interest Yield Commercial real estate 2 4.68 % 4.68 % 3 4.67 % 4.67 % Commercial and industrial 3 6.01 % 6.01 % — — — Residential mortgage and consumer 12 4.78 % 3.22 % 17 4.36 % 3.59 % Payment defaults for loans modified as a TDR in the previous 12 months to June 30, 2018 consisted of 7 residential loans, 1 commercial real estate loan and 1 multi-family loan with a recorded investment of $560,000 , $203,000 and $918,000 , respectively, at June 30, 2018 . Payment defaults for loans modified as a TDR in the previous 12 months to June 30, 2017 consisted of 8 residential loans and 2 commercial real estate loans with a recorded investment of $1.5 million and $554,000 , respectively, at June 30, 2017 . |
