NYCB 2017 Annual Report

103 The following table summarizes the Company’s portfolio of non -covered loans held for investment by credit quality indicator at December 31, 2017: 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 $27,874,330 $7,255,100 $471,571 $344,040 $35,945,041 $1,925,527 $8,449 $1,933,976 Special mention 125,752 47,123 3,691 76,033 252,599 20,883 -- 20,883 Substandard 74,627 20,003 1,966 15,752 112,348 94,164 11 94,175 Doubtful -- -- -- -- -- -- -- -- Total $28,074,709 $7,322,226 $477,228 $435,825 $36,309,988 $2,040,574 $8,460 $2,049,034 (1) Includes lease financing receivables, all of which were classified as “pass.” The following table summarizes the Company’s portfolio of non -covered loans held for investment (excluding non-covered PCI loans) by credit quality indicator at December 31, 2016: 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 $26,754,622 $7,701,773 $371,179 $341,784 $35,169,358 $1,771,975 $16,992 $1,788,967 Special mention 164,325 12,604 -- 33,210 210,139 54,979 -- 54,979 Substandard 26,105 9,985 9,902 6,200 52,192 73,491 1,313 74,804 Doubtful -- -- -- -- -- -- -- -- Total $26,945,052 $7,724,362 $381,081 $381,194 $35,431,689 $1,900,445 $18,305 $1,918,750 (1) Includes lease financing receivables, all of which were classified as “pass.” 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 poten tial 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 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: December 31, (in thousands) 2017 2016 2015 Interest income that would have been recorded $ 4,974 $ 3,128 $ 2,288 Interest income actually recorded (2,904) (1,708) (1,574) Interest income foregone $ 2,070 $ 1,420 $ 714 Troubled Debt Restructurings The Company is required to account for certain held-for-investment 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,