The following table sets forth the composition of the loan and lease portfolio at the dates indicated:

		December 31, 2020						December 31, 2019
(dollars in thousands)		Amount			Percent of Loans Held for Investment			Amount			Percent of Loans Held for Investment
Loans and Leases Held for Investment:
Mortgage Loans:
Multi-family	$		32,236,385			75.28	%	$	31,158,672			74.46	%
Commercial real estate			6,835,763			15.96			7,081,910			16.93
One-to-four family			235,989			0.55			380,361			0.91
Acquisition, development, and construction			89,790			0.21			200,596			0.48
Total mortgage loans held for investment ⁽¹⁾			39,397,927			92.00			38,821,539			92.78
Other Loans:
Commercial and industrial			1,682,519			3.93			1,742,380			4.16
Lease financing, net of unearned income of $116,366 and $104,826, respectively			1,734,824			4.05			1,271,998			3.04
Total commercial and industrial loans ⁽²⁾			3,417,343			7.98			3,014,378			7.20
Other			6,520			0.02			8,102			0.02
Total other loans held for investment			3,423,863			8.00			3,022,480			7.22
Total loans and leases held for investment ⁽¹⁾	$		42,821,790			100.00	%	$	41,844,019			100.00	%
Net deferred loan origination costs			61,808						50,136
Allowance for loan and lease losses			(194,043	)					(147,638	)
Total loans and leases held for investment, net	$		42,689,555					$	41,746,517
Loans held for sale ⁽³⁾			117,136						—
Total loans and leases, net	$		42,806,691					$	41,746,517

The majority of the loans the Company originates for investment are multi-family loans, most of which are collateralized by non-luxury apartment buildings in New York City with rent-regulated units and below-market rents. In addition, the Company originates CRE loans, most of which are collateralized by income-producing properties such as office buildings, retail centers, mixed-use buildings, and multi-tenanted light industrial properties that are located in New York City and on Long Island.

To a lesser extent, the Company also originates ADC loans for investment. One-to-four family loans held for investment were originated through the Company’s former mortgage banking operation and primarily consisted of jumbo prime adjustable rate mortgages made to borrowers with a solid credit history.

ADC loans are primarily originated for multi-family and residential tract projects in New York City and on Long Island. C&I loans consist of asset-based loans, equipment loans and leases, and dealer floor-plan loans (together, specialty finance loans and leases) that generally are made to large corporate obligors, many of which are publicly traded, carry investment grade or near-investment grade ratings, and participate in stable industries nationwide; and

other C&I loans that primarily are made to small and mid-size businesses in Metro New York. Other C&I loans are typically made for working capital, business expansion, and the purchase of machinery and equipment.

The repayment of multi-family and CRE loans generally depends on the income produced by the underlying properties which, in turn, depends on their successful operation and management. To mitigate the potential for credit losses, the Company underwrites its loans in accordance with credit standards it considers to be prudent, looking first at the consistency of the cash flows being produced by the underlying property. In addition, multi-family buildings, CRE properties, and ADC projects are inspected as a prerequisite to approval, and independent appraisers, whose appraisals are carefully reviewed by the Company’s in-house appraisers, perform appraisals on the collateral properties. In many cases, a second independent appraisal review is performed.

To further manage its credit risk, the Company’s lending policies limit the amount of credit granted to any one borrower and typically require conservative debt service coverage ratios and loan-to-value ratios. Nonetheless, the ability of the Company’s borrowers to repay these loans may be impacted by adverse conditions in the local real estate market, the local economy and changes in applicable laws and regulations. Accordingly, there can be no assurance that its underwriting policies will protect the Company from credit-related losses or delinquencies.

ADC loans typically involve a higher degree of credit risk than loans secured by improved or owner-occupied real estate. Accordingly, borrowers are required to provide a guarantee of repayment and completion, and loan proceeds are disbursed as construction progresses, as certified by in-house inspectors or third-party engineers. The Company seeks to minimize the credit risk on ADC loans by maintaining conservative lending policies and rigorous underwriting standards. However, if the estimate of value proves to be inaccurate, the cost of completion is greater than expected, or the length of time to complete and/or sell or lease the collateral property is greater than anticipated, the property could have a value upon completion that is insufficient to assure full repayment of the loan. This could have a material adverse effect on the quality of the ADC loan portfolio, and could result in losses or delinquencies. In addition, the Company utilizes the same stringent appraisal process for ADC loans as it does for its multi-family and CRE loans.

To minimize the risk involved in specialty finance lending and leasing, the Company participates in syndicated loans that are brought to it, and equipment loans and leases that are assigned to it, by a select group of nationally recognized sources who have had long-term relationships with its experienced lending officers. Each of these credits is secured with a perfected first security interest or outright ownership in the underlying collateral, and structured as senior debt or as a non-cancelable lease. To further minimize the risk involved in specialty finance lending and leasing, each transaction is re-underwritten. In addition, outside counsel is retained to conduct a further review of the underlying documentation.

To minimize the risks involved in other C&I lending, the Company underwrites such loans on the basis of the cash flows produced by the business; requires that such loans be collateralized by various business assets, including inventory, equipment, and accounts receivable, among others; and typically requires personal guarantees. However, the capacity of a borrower to repay such a C&I loan is substantially dependent on the degree to which the business is successful. In addition, the collateral underlying such loans may depreciate over time, may not be conducive to appraisal, or may fluctuate in value, based upon the results of operations of the business.

Included in loans held for investment at December 31, 2020 and December 31, 2019, were loans of $37.5 million and $38.2 million, respectively, to officers, directors, and their related interests and parties. There were no loans to principal shareholders at that date.

A loan generally is classified as a non-accrual loan when it is 90 days or more past due or when it is deemed to be impaired because the Company no longer expects to collect all amounts due according to the contractual terms of the loan agreement. When a loan is placed on non-accrual status, management ceases the accrual of interest owed, and previously accrued interest is charged against interest income. A loan is generally returned to accrual status when the loan is current and management has reasonable assurance that the loan will be fully collectible. Interest income on non-accrual loans is recorded when received in cash. At December 31, 2020 and December 31, 2019, all of our non-performing loans were non-accrual loans.

The following table presents information regarding the quality of the Company’s loans held for investment at December 31, 2020:

(in thousands)		Loans 30-89 Days Past Due			Non- Accrual Loans		Loans 90 Days or More Delinquent and Still Accruing Interest			Total Past Due Loans			Current Loans			Total Loans Receivable
Multi-family	$		4,091	$		4,068	$	—	$		8,159	$		32,228,226	$		32,236,385
Commercial real estate			9,989			12,142		—			22,131			6,813,632			6,835,763
One-to-four family			1,575			1,696		—			3,271			232,718			235,989
Acquisition, development, and construction			—			—		—			—			89,790			89,790
Commercial and industrial^{(1) (2)}			—			19,866		—			19,866			3,397,477			3,417,343
Other			3			13		—			16			6,504			6,520
Total	$		15,658	$		37,785	$	—	$		53,443	$		42,768,347	$		42,821,790

The following table presents information regarding the quality of the Company’s loans held for investment at December 31, 2019:

(in thousands)	Loans 30-89 Days Past Due		Non- Accrual Loans		Loans 90 Days or More Delinquent and Still Accruing Interest		Total Past Due Loans		Current Loans		Total Loans Receivable
Multi-family	$	1,131	$	5,407	$	—	$	6,538	$	31,152,134	$	31,158,672
Commercial real estate		2,545		14,830		—		17,375		7,064,535		7,081,910
One-to-four family		—		1,730		—		1,730		378,631		380,361
Acquisition, development, and construction		—		—		—		—		200,596		200,596
Commercial and industrial^{(1) (2)}		—		39,024		—		39,024		2,975,354		3,014,378
Other		44		252		—		296		7,806		8,102
Total	$	3,720	$	61,243	$	—	$	64,963	$	41,779,056	$	41,844,019

The following table summarizes the Company’s portfolio of loans held for investment by credit quality indicator at December 31, 2020:

		Mortgage Loans															Other Loans
(in thousands)		Multi- Family			Commercial Real Estate			One-to- Four Family			Acquisition, Development, and Construction			Total Mortgage Loans			Commercial and Industrial⁽¹⁾			Other			Total Other Loans
Credit Quality Indicator:
Pass	$		31,220,071	$		5,884,244	$		221,861	$		68,233	$		37,394,409	$		3,388,293	$		6,507	$		3,394,800
Special mention			566,756			637,101			12,436			21,557			1,237,850			2,842			—			2,842
Substandard			449,558			314,418			1,692			—			765,668			26,208			13			26,221
Doubtful			—			—			—			—			—			—			—			—
Total	$		32,236,385	$		6,835,763	$		235,989	$		89,790	$		39,397,927	$		3,417,343	$		6,520	$		3,423,863

The following table summarizes the Company’s portfolio of loans held for investment by credit quality indicator at December 31, 2019:

	Mortgage Loans										Other Loans
(in thousands)	Multi- Family		Commercial Real Estate		One-to- Four Family		Acquisition, Development, and Construction		Total Mortgage Loans		Commercial and Industrial⁽¹⁾		Other		Total Other Loans
Credit Quality Indicator:
Pass	$	30,903,657	$	6,902,218	$	377,883	$	158,751	$	38,342,509	$	2,960,557	$	7,850	$	2,968,407
Special mention		239,664		104,648		748		41,456		386,516		1,588		—		1,588
Substandard		15,351		75,044		1,730		389		92,514		52,233		252		52,485
Doubtful		—		—		—		—		—		—		—
Total	$	31,158,672	$	7,081,910	$	380,361	$	200,596	$	38,821,539	$	3,014,378	$	8,102	$	3,022,480

The preceding classifications are the most current ones available and generally have been updated within the last twelve months. In addition, they follow regulatory guidelines and can generally be described as follows: pass loans are of satisfactory quality; special mention loans have potential weaknesses that deserve management’s close attention; substandard loans are inadequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged (these loans have a well-defined weakness and there is a possibility that the Company will sustain some loss); and doubtful loans, based on existing circumstances, have weaknesses that make collection or liquidation in full highly questionable and improbable. In addition, one-to-four family loans are classified based on the duration of the delinquency.

The following table presents, by credit quality indicator, loan class, and year of origination, the amortized cost basis of the Company’s loans and leases as of December 31, 2020.

(in thousands)		Vintage Year
Risk Rating Group		2020		2019		2018		2017		2016		Prior To 2016		Revolving Loans		Total
Pass	$		9,819,431	$	6,719,587	$	5,986,476	$	4,260,433	$	3,062,012	$	7,571,266	$	24,608	$	37,443,813
Special Mention			13,067		116,400		176,428		164,635		332,176		425,632		-		1,228,338
Substandard			-		121,861		177,123		60,924		221,835		172,293		-		754,036
Total mortgage loans	$		9,832,498	$	6,957,848	$	6,340,027	$	4,485,992	$	3,616,023	$	8,169,191	$	24,608	$	39,426,187
Pass			962,956		757,220		180,133		209,963		126,680		144,999		1,046,400		3,428,351
Special Mention			-		42		-		-		-		-		2,800		2,842
Substandard			2,987		5,284		3,103		12,558		1,252		1,034		-		26,218
Total other loans			965,943		762,546		183,236		222,521		127,932		146,033		1,049,200		3,457,411
Total	$		10,798,441	$	7,720,394	$	6,523,263	$	4,708,513	$	3,743,955	$	8,315,224	$	1,073,808	$	42,883,598

When management determines that foreclosure is probable, expected credit losses are based on the fair value of the collateral adjusted for selling costs. When the borrower is experiencing financial difficulty at the reporting date and repayment is expected to be provided substantially through the operation or sale of the collateral, the collateral-dependent practical expedient has been elected and expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. For CRE loans, collateral properties include office buildings, warehouse/distribution buildings, shopping centers, apartment buildings, residential and commercial tract development. The primary source of repayment on these loans is expected to come from the sale, permanent financing or lease of the real property collateral. CRE loans are impacted by fluctuations in collateral values, as well as the ability of the borrower to obtain permanent financing.

The following table summarizes the extent to which collateral secures the Company’s collateral-dependent loans held for investment by collateral type as of December 31, 2020:

		Collateral Type
(in thousands)		Real Property		Other
Multi-family	$		7,525	$	—
Commercial real estate			25,462		—
One-to-four family			557		—
Acquisition, development, and construction			—		—
Commercial and industrial			—		26,487
Other			—		—
Total collateral-dependent loans held for investment	$		33,544		26,487

Other collateral primarily consists of taxi medallions, cash, accounts receivable and inventory.

There were no significant changes in the extent to which collateral secures the Company’s collateral-dependent financial assets during the twelve months ended December 31, 2020.

At December 31, 2020 and December 31, 2019, the Company had no residential mortgage loans in the process of foreclosure.

The interest income that would have been recorded under the original terms of non-accrual loans at the respective year-ends, and the interest income actually recorded on these loans in the respective years, is summarized below:

The Company is required to account for certain loan modifications and restructurings as TDRs. In general, a modification or restructuring of a loan constitutes a TDR if the Company grants a concession to a borrower experiencing financial difficulty. A loan modified as a TDR generally is placed on non-accrual status until the Company determines that future collection of principal and interest is reasonably assured, which requires, among other things, that the borrower demonstrate performance according to the restructured terms for a period of at least six consecutive months.

In an effort to proactively manage delinquent loans, the Company has selectively extended to certain borrowers concessions such as rate reductions, extension of maturity dates, and forbearance agreements. As of December 31, 2020, loans on which concessions were made with respect to rate reductions and/or extension of maturity dates amounted to $18.1million; loans on which forbearance agreements were reached amounted to $16.2 million.

The CARES Act was enacted on March 27, 2020. Under the CARES Act, the Company made the election to deem that loan modifications do not result in TDRs if they are (1) related to the novel coronavirus disease (“COVID-19”); (2) executed on a loan that was not more than 30 days past due as of December 31, 2019; and (3) executed between March 1, 2020, and the earlier of (A) 60 days after the date of termination of the National Emergency or (B) December 31, 2020. This includes short-term (e.g., up to six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or delays in payment that are insignificant. Borrowers considered current are those that are less than 30 days past due on their contractual payments at the time a modification program is implemented.

The following table presents information regarding the Company’s TDRs as of December 31, 2020 and 2019:

		December 31, 2020								December 31, 2019
(in thousands)		Accruing			Non- Accrual			Total		Accruing		Non- Accrual		Total
Loan Category:
Multi-family	$		-	$		-	$		-		-		3,577		3,577
Commercial real estate			14,967			-			14,967		-		-		-
One-to-four family			-			557			557		-		584		584
Acquisition, development, and construction			-			-			-		389		-		389
Commercial and industrial ⁽¹⁾			-			18,761			18,761		865		35,084		35,949
Total	$		14,967	$		19,318	$		34,285		1,254		39,245		40,499

The eligibility of a borrower for work-out concessions of any nature depends upon the facts and circumstances of each loan, which may change from period to period, and involves judgment by Company personnel regarding the likelihood that the concession will result in the maximum recovery for the Company.

The financial effects of the Company’s TDRs for the twelve months ended December 31, 2020, 2019 and 2018 are summarized as follows:

	For the Twelve Months Ended December 31, 2020
									Weighted Average Interest Rate
(dollars in thousands)	Number of Loans			Pre- Modification Recorded Investment			Post- Modification Recorded Investment		Pre- Modification		Post- Modification			Charge- off Amount			Capitalized Interest
Loan Category:
Commercial real estate		1	$		15,119	$		15,119	8.00	%	3.50	%	$		-	$		-
Commercial and industrial		42			8,912			7,471	2.36		2.23				1,441			-
Total		43	$		24,031	$		22,590					$		1,441	$		-

	For the Twelve Months Ended December 31, 2019
							Weighted Average Interest Rate
(dollars in thousands)	Number of Loans		Pre- Modification Recorded Investment		Post- Modification Recorded Investment		Pre- Modification		Post- Modification		Charge- off Amount		Capitalized Interest
Loan Category:
One-to-four family		1		131		131		5.50		5.50		—		3
Commercial and industrial		72		35,156		30,685		4.31		4.37		4,471		—
Total		73	$	35,287	$	30,816					$	4,471	$	3

	For the Twelve Months Ended December 31, 2018
							Weighted Average Interest Rate
(dollars in thousands)	Number of Loans		Pre- Modification Recorded Investment		Post- Modification Recorded Investment		Pre- Modification			Post- Modification			Charge- off Amount		Capitalized Interest
Loan Category:
Acquisition, development, and construction		1	$	900	$	900		4.50	%		4.50	%	$	—	$	—
Commercial and industrial		21		7,763		5,455		3.25			3.13			2,308		—
Total		22	$	8,663	$	6,355							$	2,308	$	—

At December 31, 2020, C&I loans totaling $3.2 million that had been modified as a TDR during the twelve months ended at that date were in payment default. At December 31, 2019, C&I and one-to-four family loans totaling $1.1 million that had been modified as a TDR during the twelve months ended at that date were in payment default. At December 31, 2018, one C&I loan in the amount of $194,000 that had been modified as a TDR during the twelve months ended at that date was in prepayment default.

The Company does not consider a payment to be in default when the loan is in forbearance, or otherwise granted a delay of payment, when the agreement to forebear or allow a delay of payment is part of a modification.

Subsequent to the modification, the loan is not considered to be in default until payment is contractually past due in accordance with the modified terms. However, the Company does consider a loan with multiple modifications or forbearance periods to be in default, and would also consider a loan to be in default if the borrower were in bankruptcy or if the loan were partially charged off subsequent to modification.