The Company performed a strategic evaluation of its businesses in the third quarter of 2014 and decided to discontinue its Philadelphia commercial lending operations and focus on its specialty finance lending. The loans which constitute the Philadelphia commercial loan portfolio are in the process of disposition including transfers to other financial institutions. As such, financial results of the Philadelphia commercial lending operations are presented as separate from continuing operations on the consolidated statements of operations, and the assets of the commercial lending operations to be disposed are presented as assets held-for-sale from discontinued operations in the consolidated balance sheets.

The following table presents financial results of the commercial lending business included in net income (loss) from discontinued operations for the twelve months ended December 31, 2020, 2019 and 2018. The majority of non-interest expense is comprised of loan related charges including charge-offs, realized and unrealized gains and losses, other real estate loan charges and attorney fees.



	For the year ended December 31,
	2020			2019		2018
			(in thousands)
Interest income	$	4,222		$	6,710	$	8,810
Interest expense		—			—		—
Net interest income		4,222			6,710		8,810

Non-interest income		21			34		910
Non-interest expense		8,059			6,234		8,229

Income (loss) before taxes		(3,816)			510		1,491
Income tax (benefit) expense		(3,304)			219		354
Net income (loss)	$	(512)		$	291	$	1,137


	December 31,		December 31,
	2020		2019
		(in thousands)
Loans, net	$	91,316	$	115,879
Other real estate owned		22,334		24,778
Total assets	$	113,650	$	140,657

Non-interest expense for the years ended December 31, 2020, 2019 and 2018, reflected $520,000, $2.0 million and $4.3 million, respectively, of fair value and realized losses on loans. For those respective years, it also reflected respective expenses and losses of $5.5 million, $1.5 million and $177,000 related to other real estate owned. Discontinued operations loans are recorded at the lower of their cost or fair value. Fair value is determined using a discounted cash flow analysis where projections of cash flows are developed in consideration of internal loan review analysis and default/prepayment assumptions for smaller pools of loans.

Since the discontinuance of operations in 2014, the Company has securitized or sold related loans, and the approximate $1.1 billion in book value of loans has been reduced to $91.3 million at December 31, 2020.