Loans are reported at their outstanding principal balance net of any unearned income, charge-offs, deferred loan fees and costs on originated loans and unamortized premiums or discounts on purchased loans. Loan fees and certain loan origination costs are deferred. Net loan origination costs and premiums or discounts on loans purchased are amortized into interest income over the contractual life of the loans using the level-yield method. Prepayment penalties received on loans which pay in full prior to their scheduled maturity are included in interest income in the period they are collected.

Interest on loans is recognized on the accrual basis. Accrued interest receivable totaled $28.2 million at June 30, 2020 and was reported in “Interest and dividends receivable” on the Consolidated Statements of Financial Condition. The accrual of income on loans is generally discontinued when certain factors, such as contractual delinquency of 90 days or more, indicate reasonable doubt as to the timely collectability of such income. Uncollected interest previously recognized on non-accrual loans is reversed from interest income at the time the loan is placed on non-accrual status. A non-accrual loan can be returned to accrual status when contractual delinquency returns to less than 90 days delinquent. Payments received on non-accrual loans that do not bring the loan to less than 90 days delinquent are recorded on a cash basis. Payments can also be applied first as a reduction of principal until all principal is recovered and then subsequently to interest, if in management’s opinion, it is evident that recovery of all principal due is likely to occur.

The Company recognizes a loan as non-performing when the borrower has demonstrated the inability to bring the loan current, or due to other circumstances which, in management’s opinion, indicate the borrower will be unable to bring the loan current within a reasonable time. All loans classified as non-performing, which includes all loans past due 90 days or more, are classified as non-accrual unless the loan is well secured and there is, in our opinion, compelling evidence the borrower will bring the loan current in the immediate future. Prior to a real estate secured loan becoming 90 days delinquent, an updated appraisal is ordered and/or an internal evaluation is prepared.

The Allowance for credit losses (“ACL”) is an estimate that is deducted from the amortized cost basis of the financial asset to present the net carrying value at the amount expected to be collected on the financial assets. Loans are charged off against that allowance when management believes that a loan balance is uncollectable based on quarterly analysis of credit risk.

As of January 1, 2020, the Company adopted Topic 326, see Note 16 related to the adoption of Topic 326.

The amount of the ACL is based upon a loss rate model that considers multiple factors which reflects management’s assessment of the credit quality of the loan portfolio. Management estimates the allowance balance using relevant information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. The factors are both quantitative and qualitative in nature including, but not limited to, historical losses, economic conditions, trends in delinquencies, value and adequacy of underlying collateral, volume and portfolio mix, and internal loan processes.

The quantitative allowance is calculated using a number of inputs and assumptions. The process and guidelines were developed using, among other factors, the guidance from federal banking regulatory agencies and GAAP. The results of this process, support management’s assessment as to the adequacy of the ACL at each balance sheet date.

The process for calculating the allowance for credit losses begins with our historical losses by portfolio segment. The losses are then incorporated into reasonable and supportable forecast to develop the quantitative component of the allowance for credit losses.

The Bank has established an Asset Classification Committee which carefully evaluates loans which are past due 90 days and/or are classified. The Asset Classification Committee thoroughly assesses the condition and circumstances surrounding each loan meeting the criteria. The Bank also has a Delinquency Committee that evaluates loans meeting specific criteria. The Bank’s loan policy requires loans to be placed into non-accrual status once the loan becomes 90 days delinquent unless there is, compelling evidence the borrower will bring the loan current in the immediate future.

For the quantitative measurement, the Company’s portfolio consists of mortgage loans secured by real estate (both commercial and retail) and non-mortgage loans, which are primarily commercial business term loans and line of credit. Based on the Company’s evaluation of the loan portfolio, below are the pools that were established as a baseline level of segmentation with their primary risk factor. The Company confirms this data remains relevant in absence of changes to the composition of the portfolio.

The mortgage portfolio is a substantial component of Company’s portfolio and it is a focus of the Company’s lending strategy, primarily focusing on multi-family and commercial real estate. While the mortgage portfolio consists of real-estate secured loans, the source of repayment and types of properties securing these loans varies and thus the Company first considered these differences as follows:

Relative to the non-mortgage portfolio, the Company considered the following categories as a baseline for evaluation:

Commercial Business – These loans are not typically secured by real estate. The primary source of repayment is cash flows from operations of the borrower’s business. Within this category are Small Business Administration (“SBA”) credits and equipment finance credits. Delinquency status, risk rating and industry are considered a risk factors in this pool.

Commercial Business secured by real estate – These loans are secured by properties used by the borrower for commercial use where the primary source of repayment is expected to be the income generated by the borrower’s business use of the property. As a result of the Coronavirus pandemic and the strain placed upon many businesses, the Company recognized in circumstances where the borrower is not performing, the real estate collateral would be the source of repayment. The Company considers these credits to be less risky than commercial business loans, however, riskier than commercial real estate loans. Delinquency status, risk rating and industry are considered risk factors in this pool.

Taxi Medallions – These loans consist primarily of loans made to New York taxi medallion owners and are secured by liens on the taxi medallions. No new taxi medallions have been originated since 2014, the remaining portfolio is running off and all credits are individually evaluated for expected credit losses

Lastly, the Company identified that the remainder of the portfolio includes overdraft lines of credit.

Overdrafts – These are unsecured consumer lines of credits and are an immaterial component of the Company’s portfolio.

For the qualitative measurement, the Company aggregated the portfolio segments according to three business units: commercial banking, residential and commercial real estate. In accordance with the interagency statement and SEC guidance, Management evaluates nine qualitative risk factors to determine if the risk is captured elsewhere in the ACL process. If not captured elsewhere, the Company has identified specific risk factors to evaluate and incorporate into its Qualitative Framework. Some risk factors include time to maturity, origination loan-to-value, loan type composition, the value of underlying collateral, changes in policies and procedures for lending strategies and underwriting standards, collection and recovery practices, internal credit review, changes in personnel, divergence between the levels of NYC and national unemployment, divergence between the NYC GDP and national GDP, industry concentrations and riskiness and large borrower concentrations.

The Company recorded a provision for loans in the amount of $16.7 million for the six months ending June 30, 2020, primarily due to the economic conditions from COVID-19 and the growth in the loan portfolio. The Company specifies both the reasonable and supportable forecast and reversion periods in three economic conditions (expansion, transition, contraction). When calculating the ACL estimate for June 30, 2020, Management acknowledged the deteriorating economic conditions as a result of the COVID-19 pandemic were captured in the forecast within the model platform, however, there is substantial uncertainty of the forecast as the economy remains severely unstable. As such, when determining the reasonable and supportable forecast, Management adjusted the period to reflect a supportable forecast of one quarter, to align with a previously established framework for contraction periods. Similarly, a reversion period of three quarters was adjusted to reflect the shorter end of a contraction period. Management believed these adjustments are necessary as forecasts are generally less reliable in unstable environments. This resulted in the ACL for loans totaling $36.7 million at June 30, 2020, representing 0.61% of gross loans and 181.85% of non-performing loans.

In response to COVID-19, the Company is actively assisting customers by providing short-term modifications in the form of deferrals of interest, principal and/or escrow for terms ranging from one to six months. At June 30^th, 2020 we have 808 active forbearances for loans with an aggregate outstanding loan balance of approximately $1.3 billion of which 82% is in our real estate portfolio and 18% is in our business banking portfolio. Given the pandemic and current economic environment, we continue to work with our customers to modify loans although the pace of requests slowed late in the second quarter . The Company actively participated in the SBA Paycheck Protection Program, closing $93.2 million of these loans through June 30, 2020. We are also a proud participant in the Main Street Lending Program in order to assist customers. Pursuant to the CARES Act, loan modifications made between March 1, 2020 and the earlier of i) December 30, 2020 or ii) 60 days after the President declares a termination of the COVID-19 national emergency are not classified as TDRs if the related loans were not more than 30 days past due as of December 31, 2019. The Company has elected that loans temporarily modified for borrowers directly impacted by COVID-19 are not considered TDR, assuming the above criteria is met and as such, these loans are considered current and continue to accrue interest at its original contractual terms. These loans were captured in the portfolio segments described above and the potential losses captured in the variables used in the ACL calculation.

The Company may restructure loans that are not directly impacted by COVID-19 to enable a borrower experiencing financial difficulties to continue making payments when it is deemed to be in the Company’s best long-term interest. This restructure may include reducing the interest rate or amount of the monthly payment for a specified period of time, after which the interest rate and repayment terms revert to the original terms of the loan. We classify these loans as TDR.

The Company believes that restructuring these loans in this manner will allow certain borrowers to become and remain current on their loans. All loans classified as TDR are individually evaluated, however TDR loans which have been current for six consecutive months at the time they are restructured as TDR remain on accrual status and are not included as part of non-performing loans. Loans which were delinquent at the time they are restructured as a TDR are placed on non-accrual status and reported as non-accrual performing TDR loans until they have made timely payments for six consecutive months. These restructurings have not included a reduction of principal balance.

The allocation of a portion of the allowance for loan losses for a performing TDR loan is based upon the present value of the future expected cash flows discounted at the loan’s original effective rate, or for a non-performing TDR loan which is collateral dependent, the fair value of the collateral. At June 30, 2020, there were no commitments to lend additional funds to borrowers whose loans were modified to a TDR. The modification of loans to a TDR did not have a significant effect on our operating results, nor did it require a significant allocation of the allowance for loan losses.

There were no TDR loan modifications during the three and six months ended June 30, 2020 and 2019.

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


	June 30, 2020
	Number	Amortized
(Dollars in thousands)	of contracts	Cost
Multi-family residential	7	$	1,860
One-to-four family - mixed-use property	3		1,143
One-to-four family - residential	3		518
Taxi medallion ⁽¹⁾	6		1,512
Commercial business and other ⁽¹⁾	3		950
Total performing troubled debt restructured	22	$	5,983

(1)

These 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 performing according to their restructured terms at the periods indicated :


	December 31, 2019
	Number	Recorded
(Dollars in thousands)	of contracts	investment
Multi-family residential	7	$	1,873
One-to-four family - mixed-use property	4		1,481
One-to-four family - residential	3		531
Taxi medallion ⁽¹⁾	7		1,668
Commercial business and other⁽¹⁾	3		941
Total performing troubled debt restructured	24	$	6,494

(1)

These loans in the table above continue to pay as agreed, however the Company records interest received on a cash basis.

During the three and six months ended June 30, 2020 and 2019, there were no defaults of TDR loans within 12 months of their modification date.

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


	June 30, 2020
	Number	Recorded
(Dollars in thousands)	of contracts	investment
Taxi medallion	5	$	1,195
One-to-four family - mixed-use property	1		338
Commercial business and other	1		279
Total troubled debt restructurings that subsequently defaulted	7	$	1,812

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:


	December 31, 2019
	Number	Recorded
(Dollars in thousands)	of contracts	investment
Taxi medallion	4	$	1,065
Commercial business and other	1		279
Total troubled debt restructurings that subsequently defaulted	5	$	1,344

The following table shows our non-accrual loans at amortized cost with no related allowance and interest income recognized for loans ninety days or more past due and still accruing for period shown below:


	At or for the six months ended June 30, 2020
				Non-Accrual				Loans ninety days
		Total Non-Accrual		with no related		Interest Income		or more past due
(In thousands)		Amortized Cost		Allowance		Recognized		and still accruing:
Multi-family residential	$	3,728	$	3,728	$	—	$	—
Commercial real estate		2,700		2,700		—		—
One-to-four family - mixed-use property		2,548		2,548		2		—
One-to-four family - residential		5,869		5,869		—		—
Small Business Administration		1,347		1,347		—		—
Taxi medallion⁽¹⁾		3,270		3,270		32		—
Commercial business and other⁽¹⁾		2,629		1,678		20		150
Total	$	22,091	$	21,140	$	54	$	150

(1)Included in the above analysis are non-accrual performing TDR taxi medallion loans totaling $1.5 million at June 30, 2020 and non-accrual performing TDR commercial business loans totaling $1.0 million at June 30, 2020.

The following table shows our non-performing loans at the period indicated:



	December 31,
(In thousands)	2019
Loans ninety days or more past due and still accruing:
Multi-family residential	$	445
Total		445
Non-accrual mortgage loans:
Multi-family residential		2,296
Commercial real estate		367
One-to-four family - mixed-use property		274
One-to-four family - residential		5,139
Total		8,076
Non-accrual non-mortgage loans:
Small Business Administration		1,151
Taxi medallion⁽¹⁾		1,641
Commercial business and other⁽¹⁾		1,945
Total		4,737
Total non-accrual loans		12,813
Total non-performing loans	$	13,258

(1)	Not included in the above analysis are non-accrual performing TDR taxi medallion loans totaling $1.7 million at December 31, 2019, respectively and non-accrual performing TDR commercial business loans totaling $0.9 million at December 31, 2019.

The following is a summary of interest foregone on non-accrual loans and loans classified as TDR for the periods indicated:


	For the three months ended				For the six months ended
	June 30,				June 30,
	2020		2019		2020		2019

	(In thousands)
Interest income that would have been recognized had the loans performed in accordance with their original terms	$	430	$	415	$	805	$	809
Less: Interest income included in the results of operations		73		123		162		241
Total foregone interest	$	357	$	292	$	643	$	568

The following tables shows the aging of the amortized cost basis in past-due loans at the period indicated by class of loans:


	June 30, 2020
					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	$	10,700	$	1,292	$	3,728	$	15,720	$	2,276,642	$	2,292,362
Commercial real estate		9,727		1,259		2,700		13,686		1,635,564		1,649,250
One-to-four family - mixed-use property		6,851		1,252		2,548		10,651		585,053		595,704
One-to-four family - residential		3,337		3,342		5,869		12,548		182,244		194,792
Construction loans		—		—		—		—		69,257		69,257
Small Business Administration		—		266		1,347		1,613		103,855		105,468
Taxi medallion		—		—		1,195		1,195		2,075		3,270
Commercial business and other		982		4,784		1,828		7,594		1,065,578		1,073,172
Total	$	31,597	$	12,195	$	19,215	$	63,007	$	5,920,268	$	5,983,275

The following tables show by delinquency an analysis of our recorded investment in loans at the periods indicated by class of loans:


	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 tables show the activity in the allowance for loan losses for the three month periods indicated:


	June 30, 2020
					One-to-four
					family -		One-to-four								Commercial
	Multi-family		Commercial		mixed-use		family -		Construction		Small Business		Taxi		business and
(In thousands)	residential		real estate		property		residential		loans		Administration		medallion		other		Total
Allowance for credit losses:
Beginning balance	$	5,895	$	6,791	$	2,170	$	892	$	185	$	1,528	$	—	$	10,637	$	28,098
Charge-offs		—		—		(3)		—		—		(178)		—		(849)		(1,030)
Recoveries		7		—		—		3		—		13		—		—		23
Provision (benefit)		3,033		180		659		266		(2)		23		—		5,460		9,619
Ending balance	$	8,935	$	6,971	$	2,826	$	1,161	$	183	$	1,386	$	—	$	15,248	$	36,710


	June 30, 2019
					One-to-four
					family -		One-to-four								Commercial
	Multi-family		Commercial		mixed-use		family -		Construction		Small Business		Taxi		business and
(In thousands)	residential		real estate		property		residential		loans		Administration		medallion		other		Total
Allowance for credit losses:
Beginning balance	$	5,493	$	4,278	$	1,791	$	731	$	351	$	409	$	—	$	7,962	$	21,015
Charge-offs		(1)		—		—		(113)		—		—		—		(1,000)		(1,114)
Recoveries		11		7		2		3		—		16		50		46		135
Provision (benefit)		3		(20)		(7)		125		30		(43)		(50)		1,436		1,474
Ending balance	$	5,506	$	4,265	$	1,786	$	746	$	381	$	382	$	—	$	8,444	$	21,510

See also Note 16 for the adoption of ASC Topic 326, “Credit Loses”.

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


	June 30, 2020
					One-to-four
					family -		One-to-four				Small				Commercial
	Multi-family		Commercial		mixed-use		family -		Construction		Business		Taxi		business and
(In thousands)	residential		real estate		property		residential		loans		Administration		medallion		other		Total

Allowance for credit losses:
Beginning balance	$	5,391	$	4,429	$	1,817	$	756	$	441	$	363	$	—	$	8,554	$	21,751
Impact of CECL Adoption		(650)		1,170		(55)		(160)		(279)		1,180		—		(827)		379
Charge-off's		—		—		(3)		—		—		(178)		—		(2,108)		(2,289)
Recoveries		13		—		78		8		—		20		—		14		133
Provision		4,181		1,372		989		557		21		1		—		9,615		16,736
Ending balance	$	8,935	$	6,971	$	2,826	$	1,161	$	183	$	1,386	$	—	$	15,248	$	36,710


	June 30, 2019
					One-to-four
					family -		One-to-four				Small				Commercial
	Multi-family		Commercial		mixed-use		family -		Construction		Business		Taxi		business and
(In thousands)	residential		real estate		property		residential		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		(1)		—		(1)		(113)		—		—		—		(2,137)		(2,252)
Recoveries		24		7		88		7		—		20		134		91		371
Provision (Benefit)		(193)		(57)		(168)		103		52		(56)		(134)		2,899		2,446
Ending balance	$	5,506	$	4,265	$	1,786	$	746	$	381	$	382	$	—	$	8,444	$	21,510

See also Note 16 for the adoption of ASC Topic 326, “Credit Loses”.

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 previous mentioned categories and management believes weakness is evident then we designate the loan as “Watch”, all other loans would be considered “Pass.” Loans that are non-accrual are designated as Substandard, Doubtful or Loss. These loan designations are updated quarterly. We designate a loan as Substandard when a well-defined weakness is identified that may jeopardize 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 Allowance for Credit Losses. 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. Loans that are in forbearance pursuant to the CARES Act, continue to be reported in the same category as they were reported immediately prior to modification.

The following table summarizes the risk category of mortgage and non-mortgage loans by loan portfolio segments and class of loans by year of origination :


	For the year ended
														Revolving Loans,		Lines of Credit
														Amortized Cost		converted to
(In thousands)		2020		2019		2018		2017		2016		Prior		Basis		term loans
1-4 Family Residential
Pass	$	11,091	$	25,155	$	26,395	$	14,736	$	11,318	$	62,336	$	7,836	$	18,842
Watch		—		—		—		913		—		2,174		299		2,276
Special Mention		—		—		1,829		—		—		2,265		—		1,197
Substandard		—		—		—		—		955		3,663		146		1,366
Total 1-4 Family Residential	$	11,091	$	25,155	$	28,224	$	15,649	$	12,273	$	70,438	$	8,281	$	23,681
1-4 Family Mixed-Use
Pass	$	23,451	$	66,989	$	76,271	$	62,016	$	53,660	$	293,719	$	—	$	—
Watch		—		2,510		1,022		901		1,161		9,406		—		—
Special Mention		—		—		391		—		—		1,658		—		—
Substandard		—		—		794		—		—		1,755		—		—
Total 1-4 Family Mixed Use	$	23,451	$	69,499	$	78,478	$	62,917	$	54,821	$	306,538	$	—	$	—
Commercial Real Estate
Pass	$	90,991	$	250,747	$	282,767	$	195,472	$	231,133	$	491,110	$	—	$	—
Watch		—		9,072		—		2,599		22,694		66,239		—		—
Special Mention		—		—		—		—		1,357		2,370		—		—
Substandard		—		1,702		—		—		—		997		—		—
Total Commercial Real Estate	$	90,991	$	261,521	$	282,767	$	198,071	$	255,184	$	560,716	$	—	$	—
Construction
Pass	$	7,333	$	15,635	$	36,212	$	—	$	—	$	—	$	—	$	—
Watch		—		—		—		—		9,399		—		—		—
Special Mention		—		—		678		—		—		—		—		—
Total Construction	$	7,333	$	15,635	$	36,890	$	—	$	9,399	$	—	$	—	$	—
Multifamily
Pass	$	131,983	$	311,043	$	367,770	$	372,340	$	274,937	$	800,168	$	3,884	$	—
Watch		979		1,582		—		2,586		2,121		17,199		321		—
Special Mention		—		—		—		739		—		982		—		—
Substandard		—		—		1,988		—		709		1,031		—		—
Total Multifamily	$	132,962	$	312,625	$	369,758	$	375,665	$	277,767	$	819,380	$	4,205	$	—
Commercial Business - Secured by RE
Pass	$	61,354	$	91,638	$	56,916	$	22,223	$	44,822	$	83,498	$	—	$	—
Watch		—		—		7,085		1,320		2,681		3,750		—		—
Total Commercial Business - Secured by RE	$	61,354	$	91,638	$	64,001	$	23,543	$	47,503	$	87,248	$	—	$	—
Commercial Business
Pass	$	75,715	$	140,668	$	110,312	$	72,507	$	17,769	$	71,794	$	174,234	$	—
Watch		445		1,001		4,110		3,145		—		112		10,361		—
Special Mention		—		—		2,433		—		2,683		447		4,543		—
Substandard		—		51		—		3,355		—		1,680		348		—
Total Commercial Business	$	76,160	$	141,720	$	116,855	$	79,007	$	20,452	$	74,033	$	189,486	$	—
Small Business Administration
Pass	$	91,607	$	963	$	3,613	$	1,058	$	2,620	$	1,669	$	—	$	—
Watch		—		—		—		2,272		—		266		—		—
Special Mention		—		—		—		—		—		53		—		—
Substandard		—		—		—		1,170		177		—		—		—
Total Small Business Administration	$	91,607	$	963	$	3,613	$	4,500	$	2,797	$	1,988	$	—	$	—
Taxi Medallions
Substandard	$	—	$	—	$	—	$	—	$	—	$	3,270	$	—	$	—
Total Taxi Medallions	$	—	$	—	$	—	$	—	$	—	$	3,270	$	—	$	—
Other
Pass	$	—	$	—	$	—	$	—	$	—	$	48	$	124	$	—
Total Other	$	—	$	—	$	—	$	—	$	—	$	48	$	124	$	—

Total Loans	$	494,949	$	918,756	$	980,586	$	759,352	$	680,196	$	1,923,659	$	202,096	$	23,681

The following table sets forth the recorded investment in loans designated as Criticized or Classified at the period indicated:


	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
Construction		—		—		—		—		—
Small Business Administration		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

Commitments to extend credit (principally real estate mortgage loans) and lines of credit (principally home equity lines of credit and business lines of credit) amounted to $46.1 million and $301.3 million, respectively, at June 30, 2020.

The following table presents types of collateral-dependent loans by class of loans as of June 30, 2020:



	Collateral Type
(In thousands)		Real Estate		Business Assets
Multi-family residential	$	3,728	$	—
Commercial real estate		2,700		—
One-to-four family - mixed-use property		2,548		—
One-to-four family - residential		5,869		—
Small Business Administration		—		1,347
Commercial business and other		—		1,678
Taxi Medallion		—		3,270
Total	$	14,845	$	6,295

Off-Balance Sheet Credit Losses

Also included within scope of the CECL standard are off-balance sheet loan commitments, which includes the unfunded portion of committed lines of credit and commitments “in-process”. Commitments “in‐process” reflect loans not in the Company’s books but rather negotiated loan / line of credit terms and rates that the Company has offered to customers and is committed to honoring. In reference to “in‐process” credits, the Company defines an unfunded commitment as a credit that has been offered to and accepted by a borrower, which has not closed and by which the obligation is not unconditionally cancellable.

The Company estimates expected credit losses over the contractual period in which the company is exposed to credit risk through a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for credit losses on losses on off-balance sheet exposures is adjusted as a provision for credit loss expense. The Company uses similar assumptions and risk factors that are developed for collectively evaluated financing receivables. This estimates includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments to be funded over its estimated life.

At June 30, 2020, allowance for off-balance-sheet credit losses is $1.3 million, which is included the “Other liabilities” on the Consolidated Statements of Financial Condition. During the three and six months ended June 30, 2020, the Company has $0.5 million and $0.7 million, respectively, in credit loss expense for off-balance-sheet items, which is included in the “Other operating expense” on the Consolidated Statements of Income.