The majority of our loan portfolio is invested in multi-family residential, commercial real estate and commercial business and other loans, which totaled 84.8% and 84.7% of our gross loans at December 31, 2019 and 2018, respectively. Our concentration in these types of loans increases the overall level of credit risk inherent in our loan portfolio. The greater risk associated with these types of loans could require us to increase our provision for loan losses and to maintain an ALL as a percentage of total loans in excess of the allowance currently maintained. At December 31, 2019, we were servicing $32.5 million of mortgage loans and $15.8 million of SBA loans for others.

Loans secured by multi-family residential property and commercial real estate generally involve a greater degree of risk than residential mortgage loans and generally carry larger loan balances. The increased credit risk is the result of several factors, including the concentration of principal in a smaller number of loans and borrowers, the effects of general economic conditions on income producing properties and the increased difficulty in evaluating and monitoring these types of loans. Furthermore, the repayments of loans secured by these types of properties are typically dependent upon the successful operation of the related property, which is usually owned by a legal entity with the property being the entity’s only asset. If the cash flow from the property is reduced, the borrower’s ability to repay the loan may be impaired. If the borrower defaults, our only remedy may be to foreclose on the property, for which the market value may be less than the balance due on the related mortgage loan.

Loans secured by commercial business and other loans involve a greater degree of risk for the same reasons as for multi-family residential and commercial real estate loans with the added risk that many of the loans are not secured by improved properties.

To minimize the risks involved in the origination of multi-family residential, commercial real estate and commercial business and other loans, the Company adheres to defined underwriting standards, which include reviewing the expected net operating income generated by the real estate collateral securing the loan, the age and condition of the collateral, the financial resources and income level of the borrower and the borrower’s experience in owning or managing similar properties. We typically require debt service coverage of at least 125% of the monthly loan payment. We generally originate these loans up to a maximum of 75% of the appraised value or the purchase price of the property, whichever is less. Any loan with a final loan-to-value ratio in excess of 75% must be approved by the Bank’s Board of Directors or the Loan Committee as an exception to policy. We generally rely on the income generated by the property as the primary means by which the loan is repaid. However, personal guarantees may be obtained for additional security from these borrowers. Additionally, for commercial business and other loans which are not secured by improved properties, the Bank will secure these loans with business assets, including accounts receivables, inventory and real estate and generally require personal guarantees.

The following tables show loans modified and classified as TDR during the periods indicated:

The recorded investment of the loans modified and classified as TDR, presented in the tables above, were unchanged as there was no principal forgiven in these modifications.

The following table shows our recorded investment for loans classified as TDR that are performing according to their restructured terms at the periods indicated:

During the year ended December 31, 2019, there were no defaults of TDR loans within 12 months of their modification date. During the year ended December 31, 2018, one commercial business and other loan which was modified as a TDR in 2018 was transferred to non-performing status, as it was no longer performing according to its modified terms. During the year ended December 31, 2019, four taxi medallion loans totaling $1.1 million were transferred to non-performing status, four taxi medallion loans totaling $0.9 million were paid-off, recording a recovery of $0.1 million and one commercial business loan for $0.3 million was transferred to non-performing status. During the year ended December 31, 2018, we sold one commercial real estate TDR loan totaling $1.8 million, for a loss of $0.3 million, four taxi medallion TDR loan’s paid-off totaling $1.4 million and one taxi medallion loan for $0.1 million was foreclosed and is included in other assets. Taxi medallion loans in the table above continue to pay as agreed, however the Company records interest received on a cash basis.

The following table shows our recorded investment for loans classified as TDR that are not performing according to their restructured terms at the periods indicated:

(1)

^{Not included in the above analysis are non-accrual performing TDR taxi medallions loans totaling}^$1.7^{million in 2019 and}^$3.9^{million in 2018 and non-accrual performing TDR commercial business loans totaling}^$0.9^{million in 2019.}

The following is a summary of interest foregone on non-accrual loans and loans classified as TDR for the years ended December 31:


	2019		2018		2017
	(In thousands)
Interest income that would have been recognized had the loans performed in accordance with their original terms	$	1,546	$	1,604	$	1,705
Less: Interest income included in the results of operations		418		623		619
Total foregone interest	$	1,128	$	981	$	1,086

The following table shows by delinquency an analysis of our recorded investment in loans at December 31, 2019:


					Greater
	30 - 59 Days		60 - 89 Days		than		Total Past
(in thousands)	Past Due		Past Due		90 Days		Due		Current		Total Loans
Multi-family residential	$	4,042	$	1,563	$	2,741	$	8,346	$	2,230,245	$	2,238,591
Commercial real estate		—		4,941		367		5,308		1,576,700		1,582,008
One-to-four family - mixed-use property		1,117		496		274		1,887		590,584		592,471
One-to-four family - residential		720		1,022		5,139		6,881		181,335		188,216
Co-operative apartments		—		—		—		—		8,663		8,663
Construction loans		—		—		—		—		67,754		67,754
Small Business Administration		—		—		1,151		1,151		13,294		14,445
Taxi medallion		—		—		1,065		1,065		2,244		3,309
Commercial business and other		2,340		5		1,945		4,290		1,057,188		1,061,478
Total	$	8,219	$	8,027	$	12,682	$	28,928	$	5,728,007	$	5,756,935

The following table shows by delinquency an analysis of our recorded investment in loans at December 31, 2018:


					Greater
	30 - 59 Days		60 - 89 Days		than		Total Past
(in thousands)	Past Due		Past Due		90 Days		Due		Current		Total Loans
Multi-family residential	$	1,887	$	339	$	2,410	$	4,636	$	2,264,412	$	2,269,048
Commercial real estate		379		—		1,379		1,758		1,540,789		1,542,547
One-to-four family - mixed-use property		1,003		322		928		2,253		575,488		577,741
One-to-four family - residential		1,564		—		6,144		7,708		182,642		190,350
Co-operative apartments		—		—		—		—		8,498		8,498
Construction loans		—		730		—		730		49,870		50,600
Small Business Administration		774		68		1,267		2,109		13,101		15,210
Taxi medallion		—		—		—		—		4,539		4,539
Commercial business and other		1,306		281		2,216		3,803		873,960		877,763
Total	$	6,913	$	1,740	$	14,344	$	22,997	$	5,513,299	$	5,536,296

The following tables show the activity in the allowance for loan losses for the periods indicated:


	For the year ended December 31, 2019
					One-to-four
					family -		One-to-four										Commercial
	Multi-family		Commercial		mixed-use		family -		Co-operative		Construction		Small Business		Taxi		business and
(in thousands)	residential		real estate		property		residential		apartments		loans		Administration		medallion		other		Total
Allowance for credit losses:
Beginning balance	$	5,676	$	4,315	$	1,867	$	749	$	—	$	329	$	418	$	—	$	7,591	$	20,945
Charge-off's		(190)		—		(89)		(113)		—		—		—		—		(2,386)		(2,778)
Recoveries		44		37		197		13		—		—		60		134		288		773
Provision (benefit)		(139)		77		(158)		107		—		112		(115)		(134)		3,061		2,811
Ending balance	$	5,391	$	4,429	$	1,817	$	756	$	—	$	441	$	363	$	—	$	8,554	$	21,751


	For the year ended December 31, 2018
					One-to-four
					family -		One-to-four										Commercial
	Multi-family		Commercial		mixed-use		family -		Co-operative		Construction		Small Business		Taxi		business and
(in thousands)	residential		real estate		property		residential		apartments		loans		Administration		medallion		other		Total
Allowance for credit losses:
Beginning balance	$	5,823	$	4,643	$	2,545	$	1,082	$	—	$	68	$	669	$	—	$	5,521	$	20,351
Charge-off's		(99)		—		(3)		(1)		—		—		(392)		(393)		(44)		(932)
Recoveries		6		—		136		569		—		—		51		143		46		951
Provision (benefit)		(54)		(328)		(811)		(901)		—		261		90		250		2,068		575
Ending balance	$	5,676	$	4,315	$	1,867	$	749	$	—	$	329	$	418	$	—	$	7,591	$	20,945


	For the year ended December 31, 2017
					One-to-four
					family -		One-to-four										Commercial
	Multi-family		Commercial		mixed-use		family -		Co-operative		Construction		Small Business		medallion		business and
(in thousands)	residential		real estate		property		residential		apartments		loans		Administration		Taxi		other		Unallocated		Total
Allowance for credit losses:
Beginning balance	$	5,923	$	4,487	$	2,903	$	1,015	$	—	$	92	$	481	$	2,243	$	4,492	$	593	$	22,229
Charge-off's		(454)		(4)		(39)		(415)		—		—		(212)		(11,283)		(65)		—		(12,472)
Recoveries		300		96		108		91		—		—		80		—		58		—		733
Provision (benefit)		54		64		(427)		391		—		(24)		320		9,040		1,036		(593)		9,861
Ending balance	$	5,823	$	4,643	$	2,545	$	1,082	$	—	$	68	$	669	$	—	$	5,521	$	—	$	20,351

The following tables show the manner in which loans were evaluated for impairment at the periods indicated:


	At December 31, 2019
					One-to-four		One-to-four										Commercial
	Multi-family		Commercial		family - mixed -		family -		Co-operative		Construction		Small Business				business and
(in thousands)	residential		real estate		use property		residential		apartments		loans		Administration		Taxi medallion		other		Total
Financing Receivables:
Ending Balance	$	2,238,591	$	1,582,008	$	592,471	$	188,216	$	8,663	$	67,754	$	14,445	$	3,309	$	1,061,478	$	5,756,935
Ending balance: individually evaluated for impairment	$	4,169	$	367	$	1,761	$	5,941	$	—	$	—	$	1,151	$	3,309	$	2,886	$	19,584
Ending balance: collectively evaluated for impairment	$	2,234,422	$	1,581,641	$	590,710	$	182,275	$	8,663	$	67,754	$	13,294	$	—	$	1,058,592	$	5,737,351

Allowance for credit losses:
Ending balance: individually evaluated for impairment	$	92	$	—	$	45	$	46	$	—	$	—	$	—	$	—	$	132	$	315
Ending balance: collectively evaluated for impairment	$	5,299	$	4,429	$	1,772	$	710	$	—	$	441	$	363	$	—	$	8,422	$	21,436


	At December 31, 2018
					One-to-four		One-to-four										Commercial
	Multi-family		Commercial		family - mixed		family -			Co-operative		Construction		Small Business			business and
(in thousands)	residential		real estate		use property		residential			apartments		loans		Administration	Taxi medallion		other		Total
Financing Receivables:
Ending Balance	$	2,269,048	$	1,542,547	$	577,741	$	190,350	$	8,498	$	50,600	$	15,210	$	4,539	$	877,763	$	5,536,296
Ending balance: individually evaluated for impairment	$	4,500	$	1,435	$	3,098	$	6,889	$	—	$	—	$	1,267	$	4,539	$	3,791	$	25,519
Ending balance: collectively evaluated for impairment	$	2,264,548	$	1,541,112	$	574,643	$	183,461	$	8,498	$	50,600	$	13,943	$	—	$	873,972	$	5,510,777

Allowance for credit losses:
Ending balance: individually evaluated for impairment	$	100	$	—	$	143	$	51	$	—	$	—	$	—	$	—	$	866	$	1,160
Ending balance: collectively evaluated for impairment	$	5,576	$	4,315	$	1,724	$	698	$	—	$	329	$	418	$	—	$	6,725	$	19,785

The following table shows our recorded investment, unpaid principal balance and allocated allowance for loan losses for loans that were considered impaired at:


	December 31, 2019						December 31, 2018
			Unpaid						Unpaid
	Recorded		Principal		Related		Recorded		Principal		Related
	Investment		Balance		Allowance		Investment		Balance		Allowance
	(In thousands)
With no related allowance recorded:
Mortgage loans:
Multi-family residential	$	2,919	$	2,919	$	—	$	3,225	$	3,568	$	—
Commercial real estate		367		367		—		1,435		1,435		—
One-to-four family mixed-use property		921		924		—		1,913		2,113		—
One-to-four family residential		5,558		5,615		—		6,490		6,643		—
Non-mortgage loans:
Small Business Administration		1,151		1,421		—		1,267		1,609		—
Taxi medallion		3,309		9,527		—		4,539		12,788		—
Commercial business and other		1,945		1,945		—		—		—		—

Total loans with no related allowance recorded		16,170		22,718		—		18,869		28,156		—

With an allowance recorded:
Mortgage loans:
Multi-family residential		1,250		1,250		92		1,275		1,275		100
One-to-four family mixed-use property		840		840		45		1,185		1,185		143
One-to-four family residential		383		383		46		399		399		51
Commercial business and other		941		941		132		3,791		3,791		866

Total loans with an allowance recorded		3,414		3,414		315		6,650		6,650		1,160

Total Impaired Loans:
Total mortgage loans	$	12,238	$	12,298	$	183	$	15,922	$	16,618	$	294

Total non-mortgage loans	$	7,346	$	13,834	$	132	$	9,597	$	18,188	$	866

The following table shows our average recorded investment and interest income recognized for loans that were considered impaired for the years ended:


	December 31, 2019				December 31, 2018				December 31, 2017
	Average		Interest		Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized		Investment		Recognized
	(In thousands)
With no related allowance recorded:
Mortgage loans:
Multi-family residential	$	3,155	$	36	$	3,957	$	76	$	3,260	$	80
Commercial real estate		1,081		15		4,334		176		6,187		300
One-to-four family mixed-use property		1,719		67		3,298		125		5,104		168
One-to-four family residential		5,866		7		7,603		33		9,865		108
Construction		190		—		183		10		596		22
Non-mortgage loans:
Small Business Administration		1,204		—		711		33		207		11
Taxi medallion		3,761		171		5,865		313		4,537		161
Commercial business and other		1,398		—		10,170		792		1,267		98

Total loans with no related allowance recorded		18,374		296		36,121		1,558		31,023		948

With an allowance recorded:
Mortgage loans:
Multi-family residential		1,263		72		1,741		96		2,348		136
Commercial real estate		—		—		—		—		2,026		95
One-to-four family mixed-use property		975		34		1,201		54		1,341		65
One-to-four family residential		391		16		405		16		420		16
Non-mortgage loans:
Taxi medallion		—		—		—		—		10,997		166
Commercial business and other		1,446		—		1,178		25		375		22

Total loans with an allowance recorded		4,075		122		4,525		191		17,507		500

Total Impaired Loans:
Total mortgage loans	$	14,640	$	247	$	22,722	$	586	$	31,147	$	990

Total non-mortgage loans	$	7,809	$	171	$	17,924	$	1,163	$	17,383	$	458

In accordance with our policy and the current regulatory guidelines, we designate loans as “Special Mention,” which are considered “Criticized Loans,” and “Substandard,” “Doubtful,” or “Loss,” which are considered “Classified Loans”. If a loan does not fall within one of the previously mentioned categories then the loan would be considered “Pass.” These loan designations are updated quarterly. We designate a loan as Substandard when a well-defined weakness is identified that jeopardizes the orderly liquidation of the debt. We designate a loan Doubtful when it displays the inherent weakness of a Substandard loan with the added provision that collection of the debt in full, on the basis of existing facts, is highly improbable. We designate a loan as Loss if it is deemed the debtor is incapable of repayment. The Company does not hold any loans designated as loss, as loans that are designated as Loss are charged to the ALL. Loans that are non-accrual are designated as Substandard, Doubtful or Loss. We designate a loan as Special Mention if the asset does not warrant classification within one of the other classifications, but does contain a potential weakness that deserves closer attention.

The following table sets forth the recorded investment in loans designated as Criticized or Classified at December 31, 2019:


(In thousands)	Special Mention		Substandard		Doubtful		Loss		Total
Multi-family residential	$	1,563	$	2,743	$	—	$	—	$	4,306
Commercial real estate		5,525		367		—		—		5,892
One-to-four family - mixed-use property		1,585		453		—		—		2,038
One-to-four family - residential		1,095		5,787		—		—		6,882
Small Business Administration ⁽¹⁾		55		85		—		—		140
Taxi medallion		—		3,309		—		—		3,309
Commercial business and other		3,924		11,289		266		—		15,479
Total loans	$	13,747	$	24,033	$	266	$	—	$	38,046

The following table sets forth the recorded investment in loans designated as Criticized or Classified at December 31, 2018:


(In thousands)	Special Mention		Substandard		Doubtful		Loss		Total
Multi-family residential	$	2,498	$	4,166	$	—	$	—	$	6,664
Commercial real estate		381		4,051		—		—		4,432
One-to-four family - mixed-use property		1,199		2,034		—		—		3,233
One-to-four family - residential		557		6,665		—		—		7,222
Construction loans		730		—		—		—		730
Small Business Administration ⁽¹⁾		481		139		—		—		620
Taxi medallion		—		4,539		—		—		4,539
Commercial business and other		730		21,348		3,512		—		25,590
Total loans	$	6,576	$	42,942	$	3,512	$	—	$	53,030

(1)	Balance reported net of SBA Guaranteed portion.