| Loans Receivable, Net | Loans Receivable, Net The detail of the loan portfolio as of December 31, 2019 and December 31, 2018 was as follows: December 31, December 31, (In thousands) Multi-family loans $ 7,813,236 8,165,187 Commercial real estate loans 4,827,848 4,783,095 Commercial and industrial loans 2,951,306 2,389,756 Construction loans 262,866 227,015 Total commercial loans 15,855,256 15,565,053 Residential mortgage loans 5,144,229 5,350,504 Consumer and other loans 699,729 707,746 Total loans excluding PCI loans 21,699,214 21,623,303 PCI loans 4,055 4,461 Deferred fees, premiums and other, net (1) 907 (13,811 ) Allowance for loan losses (228,120 ) (235,817 ) Net loans $ 21,476,056 21,378,136 (1) Included in deferred fees and premiums are accretable purchase accounting adjustments in connection with loans acquired and an adjustment to the carrying amount of the residential loans hedged. Allowance for Loan Losses An analysis of the allowance for loan losses is summarized as follows: Years Ended December 31, 2019 2018 2017 (In thousands) Balance at beginning of the period $ 235,817 230,969 228,373 Loans charged off (13,132 ) (24,090 ) (19,209 ) Recoveries 6,435 16,938 5,555 Net charge-offs (6,697 ) (7,152 ) (13,654 ) Provision for loan losses (1,000 ) 12,000 16,250 Balance at end of the period $ 228,120 235,817 230,969 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. 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 years ended December 31, 2019 and 2018 , the Company recorded charge-offs of $3,000 and $379,000 , 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 elements: loans collectively evaluated for impairment and loans individually evaluated for impairment. 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 allowance for loans collectively evaluated for impairment consists of both quantitative and qualitative loss components. The Company determines the qualitative component by applying quantitative loss factors to the loans collectively evaluated for impairment segregated 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. Quantitative loss factors for each loan segment are generally determined based on the Company’s historical loss experience over a look-back period. Additionally, management assesses the loss emergence period for the expected losses of each loan segment and adjusts each quantitative 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 quantitative loss factors may also be adjusted to account for qualitative factors, both internal and external to the Company, which are made to reflect risks inherent in the portfolio not captured by the quantitative component. 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 consumer loans are cash surrender value lending on life insurance contracts, home equity loans and home equity lines of credit. 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 impaired 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. Updated appraisals are generally obtained for substandard loans $1.0 or greater and special mention loans $2.0 million or greater in the process of collection by the Company’s special assets department. 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 based on the growth and composition of the loan portfolio, the level of loan delinquency and the economic conditions in our lending area. 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 the years ended December 31, 2019 and 2018 : December 31, 2019 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, 2018 $ 82,876 48,449 71,084 7,486 20,776 3,102 2,044 235,817 Charge-offs (2,973 ) (151 ) (6,833 ) — (2,241 ) (934 ) — (13,132 ) Recoveries 1,244 2,204 1,203 — 1,448 336 — 6,435 Provision (7,048 ) 423 8,942 (670 ) (2,592 ) 44 (99 ) (1,000 ) Ending balance-December 31, 2019 $ 74,099 50,925 74,396 6,816 17,391 2,548 1,945 228,120 Individually evaluated for impairment $ — — — — 1,686 77 — 1,763 Collectively evaluated for impairment 74,099 50,925 74,396 6,816 15,705 2,471 1,945 226,357 Loans acquired with deteriorated credit quality — — — — — — — — Balance at December 31, 2019 $ 74,099 50,925 74,396 6,816 17,391 2,548 1,945 228,120 Loans: Individually evaluated for impairment $ 22,169 7,875 12,476 — 26,147 856 — 69,523 Collectively evaluated for impairment 7,791,067 4,819,973 2,938,830 262,866 5,118,082 698,873 — 21,629,691 Loans acquired with deteriorated credit quality — 3,499 — — 489 67 — 4,055 Balance at December 31, 2019 $ 7,813,236 4,831,347 2,951,306 262,866 5,144,718 699,796 — 21,703,269 December 31, 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 (2,603 ) (7,200 ) (7,078 ) — (5,246 ) (1,963 ) — (24,090 ) Recoveries 17 5,213 9,478 — 2,193 37 — 16,938 Provision 3,993 (5,701 ) 14,121 (4,123 ) 1,994 1,929 (213 ) 12,000 Ending balance-December 31, 2018 $ 82,876 48,449 71,084 7,486 20,776 3,102 2,044 235,817 Individually evaluated for impairment $ — — — — 2,082 72 — 2,154 Collectively evaluated for impairment 82,876 48,449 71,084 7,486 18,694 3,030 2,044 233,663 Loans acquired with deteriorated credit quality — — — — — — — — Balance at December 31, 2018 $ 82,876 48,449 71,084 7,486 20,776 3,102 2,044 235,817 Loans: Individually evaluated for impairment $ 32,046 6,623 19,624 — 27,884 570 — 86,747 Collectively evaluated for impairment 8,133,141 4,776,472 2,370,132 227,015 5,322,620 707,176 — 21,536,556 Loans acquired with deteriorated credit quality — 3,730 — — 611 120 — 4,461 Balance at December 31, 2018 $ 8,165,187 4,786,825 2,389,756 227,015 5,351,115 707,866 — 21,627,764 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. In assessing and classifying our commercial loan portfolio, the Company places significant emphasis on the borrower’s ability to service its debt. 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 December 31, 2019 and December 31, 2018 by class of loans excluding PCI loans: December 31, 2019 Pass Watch Special Mention Substandard Doubtful Loss Total (In thousands) Commercial loans: Multi-family $ 6,326,412 942,438 167,748 376,638 — — 7,813,236 Commercial real estate 4,023,642 489,514 118,426 196,266 — — 4,827,848 Commercial and industrial 2,031,148 693,397 111,389 115,372 — — 2,951,306 Construction 169,236 75,319 — 18,311 — — 262,866 Total commercial loans 12,550,438 2,200,668 397,563 706,587 — — 15,855,256 Residential mortgage 5,073,971 14,388 5,429 50,441 — — 5,144,229 Consumer and other 687,266 9,157 1,174 2,132 — — 699,729 Total $ 18,311,675 2,224,213 404,166 759,160 — — 21,699,214 December 31, 2018 Pass Watch Special Mention Substandard Doubtful Loss Total (In thousands) Commercial loans: Multi-family $ 6,462,056 1,061,168 313,498 328,465 — — 8,165,187 Commercial real estate 3,910,282 552,080 162,488 158,245 — — 4,783,095 Commercial and industrial 1,647,130 571,620 53,861 117,145 — — 2,389,756 Construction 163,503 35,774 9,200 18,538 — — 227,015 Total commercial loans 12,182,971 2,220,642 539,047 622,393 — — 15,565,053 Residential mortgage 5,268,234 12,082 7,712 62,476 — — 5,350,504 Consumer and other 694,432 8,443 1,650 3,221 — — 707,746 Total $ 18,145,637 2,241,167 548,409 688,090 — — 21,623,303 The following tables present the payment status of the recorded investment in past due loans as of December 31, 2019 and December 31, 2018 by class of loans, excluding PCI loans: December 31, 2019 30-59 Days 60-89 Days Greater than 90 Days Total Past Due Current Total Loans Receivable (In thousands) Commercial loans: Multi-family $ 45,606 1,946 22,055 69,607 7,743,629 7,813,236 Commercial real estate 7,958 525 3,787 12,270 4,815,578 4,827,848 Commercial and industrial 7,774 2,767 5,053 15,594 2,935,712 2,951,306 Construction — — — — 262,866 262,866 Total commercial loans 61,338 5,238 30,895 97,471 15,757,785 15,855,256 Residential mortgage 16,954 6,195 27,628 50,777 5,093,452 5,144,229 Consumer and other 9,157 1,174 1,299 11,630 688,099 699,729 Total $ 87,449 12,607 59,822 159,878 21,539,336 21,699,214 December 31, 2018 30-59 Days 60-89 Days Greater than 90 Days Total Past Due Current Total Loans Receivable (In thousands) Commercial loans: Multi-family $ 23,098 2,572 33,683 59,353 8,105,834 8,165,187 Commercial real estate 5,491 3,511 2,415 11,417 4,771,678 4,783,095 Commercial and industrial 2,988 867 4,560 8,415 2,381,341 2,389,756 Construction 9,200 — 227 9,427 217,588 227,015 Total commercial loans 40,777 6,950 40,885 88,612 15,476,441 15,565,053 Residential mortgage 13,811 7,712 39,255 60,778 5,289,726 5,350,504 Consumer and other 8,524 1,650 2,830 13,004 694,742 707,746 Total $ 63,112 16,312 82,970 162,394 21,460,909 21,623,303 The following table presents non-accrual loans, excluding PCI loans, at the dates indicated: December 31, 2019 December 31, 2018 # of loans Amount # of loans Amount (Dollars in thousands) Non-accrual: Multi-family 8 $ 23,322 15 $ 33,940 Commercial real estate 22 11,945 35 12,391 Commercial and industrial 18 12,481 14 19,394 Construction — — 1 227 Total commercial loans 48 47,748 65 65,952 Residential mortgage and consumer 255 47,435 320 58,961 Total non-accrual loans 303 $ 95,183 385 $ 124,913 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 December 31, 2019 and December 31, 2018 , these loans are comprised of the following: December 31, 2019 December 31, 2018 # of loans Amount # of loans Amount (Dollars in thousands) TDR with payment status current classified as non-accrual: Commercial real estate 2 $ 2,360 2 $ 2,817 Commercial and industrial — — 2 9,762 Total commercial loans 2 2,360 4 12,579 Residential mortgage and consumer 25 4,218 26 4,006 Total TDR with payment status current classified as non-accrual 27 $ 6,578 30 $ 16,585 The following table presents TDR loans which were also 30-89 days delinquent and classified as non-accrual at the dates indicated: December 31, 2019 December 31, 2018 # of loans Amount # of loans Amount (Dollars in thousands) TDR 30-89 days delinquent classified as non-accrual: Residential mortgage and consumer 18 $ 3,331 11 $ 1,810 Total TDR 30-89 days delinquent classified as non-accrual 18 $ 3,331 11 $ 1,810 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 December 31, 2019 , PCI loans with a carrying value of $4.1 million included $3.9 million of which were current, $26,000 of which were 30 - 89 days delinquent and $132,000 of which were 90 days or more delinquent. As of December 31, 2018 , PCI loans with a carrying value of $4.5 million included $4.1 million of which were current, $229,000 of which were 30 - 89 days delinquent and $248,000 of which were 90 days or more delinquent. At December 31, 2019 and 2018 , loans meeting the Company’s definition of an impaired loan were primarily collateral dependent loans which totaled $69.5 million and $86.7 million , respectively, with allocations of the allowance for loan losses of $1.8 million and $2.2 million as of December 31, 2019 and 2018 , respectively. During the years ended December 31, 2019 and 2018 , interest income received and recognized on these loans totaled $1.0 million and $904,000 , respectively. Direct finance leases are stated as the sum of remaining minimum lease payments from lessees plus estimated residual values less unearned lease income. On an annual basis, the Company reviews the lease residuals for potential impairment. For the year ended December 31, 2019, the Company reviewed the lease residual under its lease portfolio and recorded an impairment charge of $2.6 million on leased equipment as the fair value of the equipment decreased at a rate greater than originally projected. The following tables present loans individually evaluated for impairment by portfolio segment as of December 31, 2019 and December 31, 2018 : December 31, 2019 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (In thousands) With no related allowance: Multi-family $ 22,169 23,581 — 23,298 47 Commercial real estate 7,875 10,913 — 8,127 199 Commercial and industrial 12,476 21,090 — 14,860 351 Construction — — — — — Total commercial loans 42,520 55,584 — 46,285 597 Residential mortgage and consumer 13,783 18,066 — 13,811 267 With an allowance recorded: Multi-family — — — — — Commercial real estate — — — — — Commercial and industrial — — — — — Construction — — — — — Total commercial loans — — — — — Residential mortgage and consumer 13,220 13,881 1,763 13,321 153 Total: Multi-family 22,169 23,581 — 23,298 47 Commercial real estate 7,875 10,913 — 8,127 199 Commercial and industrial 12,476 21,090 — 14,860 351 Construction — — — — — Total commercial loans 42,520 55,584 — 46,285 597 Residential mortgage and consumer 27,003 31,947 1,763 27,132 420 Total impaired loans $ 69,523 87,531 1,763 73,417 1,017 December 31, 2018 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (In thousands) With no related allowance: Multi-family $ 32,046 34,199 — 33,656 146 Commercial real estate 6,623 11,896 — 6,611 79 Commercial and industrial 19,624 26,323 — 20,218 232 Construction — — — — — Total commercial loans 58,293 72,418 — 60,485 457 Residential mortgage and consumer 12,626 17,130 — 11,907 167 With an allowance recorded: Multi-family — — — — — Commercial real estate — — — — — Commercial and industrial — — — — — Construction — — — — — Total commercial loans — — — — — Residential mortgage and consumer 15,828 16,498 2,154 15,627 280 Total: Multi-family 32,046 34,199 — 33,656 146 Commercial real estate 6,623 11,896 — 6,611 79 Commercial and industrial 19,624 26,323 — 20,218 232 Construction — — — — — Total commercial loans 58,293 72,418 — 60,485 457 Residential mortgage and consumer 28,454 33,628 2,154 27,534 447 Total impaired loans $ 86,747 106,046 2,154 88,019 904 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 December 31, 2019 and December 31, 2018 . There were five residential PCI loans that were previously designated as PCI classified as TDRs at December 31, 2019 and 2018 . December 31, 2019 Accrual Non-accrual Total # of loans Amount # of loans Amount # of loans Amount (Dollars in thousands) Commercial loans: Commercial real estate — $ — 3 $ 2,362 3 $ 2,362 Commercial and industrial 3 2,535 2 4,682 5 7,217 Total commercial loans 3 2,535 5 7,044 8 9,579 Residential mortgage and consumer 54 10,549 78 16,458 132 27,007 Total 57 $ 13,084 83 $ 23,502 140 $ 36,586 December 31, 2018 Accrual Non-accrual Total # of loans Amount # of loans Amount # of loans Amount (Dollars in thousands) Commercial loans: Multi-family — $ — 1 $ 892 1 $ 892 Commercial real estate — — 3 2,859 3 2,859 Commercial and industrial 2 2,070 4 13,479 6 15,549 Total commercial loans 2 2,070 8 17,230 10 19,300 Residential mortgage and consumer 52 11,550 79 16,908 131 28,458 Total 54 $ 13,620 87 $ 34,138 141 $ 47,758 The following tables present information about TDRs that occurred during the years ended December 31, 2019 and 2018 : Years Ended December 31, 2019 2018 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 2 $ 2,440 $ 2,440 4 $ 3,664 $ 3,492 Commercial and industrial 2 1,270 1,270 5 14,682 14,682 Residential mortgage and consumer 14 2,850 2,850 23 4,813 4,813 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 $729,000 in charge-offs for TDRs of unsecured commercial and industrial loans during the year ended December 31, 2019 . There were $214,000 of charge-offs for collateral dependent TDRs during the year ended December 31, 2018 . Of the amount charged off during the year ended December 31, 2018 , one borrower subsequently repaid the full amount of outstanding loan principal which resulted in a recovery of $172,000 . The allowance for loan losses associated with the TDRs presented in the above tables totaled $1.8 million and $2.2 million at December 31, 2019 and 2018 , respectively. Loan modifications generally involve the reduction in loan interest rate and/or 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 in the year ended December 31, 2019 had their maturity extended and/or interest rate reduced to current market terms. The commercial loan modifications which qualified as TDRs in the year ended December 31, 2018 had their maturity extended. The following tables present information about pre and post modification interest yield for TDRs which occurred during the years ended December 31, 2019 and 2018 : Years Ended December 31, 2019 2018 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 6.30 % 4.67 % 4 4.42 % 4.42 % Commercial and industrial 2 5.66 % 5.66 % 5 5.96 % 5.96 % Residential mortgage and consumer 14 5.07 % 4.96 % 23 5.10 % 4.26 % Payment defaults for loans modified as a TDR in the previous 12 months to December 31, 2019 consisted of 2 residential loans with a recorded investment of $152,000 . Payment defaults for loans modified as a TDR in the previous 12 months to December 31, 2018 consisted of 3 residential loans, 2 commercial real estate loans and 1 multi-family loan with a recorded investment of $584,000 , $568,000 and $892,000 , respectively, at December 31, 2018 . Loan Sales For the year ended December 31, 2019 , the Company sold $147.2 million of performing commercial loans and $49.2 million of residential performing loans resulting in a gain on sale of $1.8 million . In addition, the Company sold $173,000 of non-performing commercial real estate loans resulting in $29,000 of additional charge offs recorded through the allowance. For the year ended December 31, 2018 , there were no sales of loans. The Company also sold its interest in $23.6 million of leased equipment resulting in a gain on sale of $5.7 million , which is included in |
