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Loans Receivable and Allowance for Credit Losses | 12 Months Ended
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Dec. 31, 2019
Loans and Leases Receivable Disclosure [Abstract] |
Loans Receivable and Allowance for Credit Losses | Loans Receivable and Allowance for Credit Losses The Company’s held-for-investment loan portfolio includes originated and purchased loans. Originated and purchased loans with no evidence of credit deterioration at their acquisition date are referred to collectively as non-PCI loans. PCI loans are loans acquired with evidence of credit deterioration since their origination and for which it is probable at the acquisition date that the Company would be unable to collect all contractually required payments. PCI loans are accounted for under ASC Subtopic 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality. The Company has elected to account for PCI loans on a pool level basis under ASC 310-30 at the time of acquisition. The following table presents the composition of the Company’s non-PCI and PCI loans as of December 31, 2019 and 2018:
($ in thousands) |  | December 31, 2019 |  | December 31, 2018
| Non-PCI Loans (1) |  | PCI Loans (2) |  | Total (1)(2) |  | Non-PCI Loans (1) |  | PCI Loans (2) |  | Total (1)(2)
Commercial: |  |  |  |  |  |  |  |  |  |  |  |
C&I |  | $ | 12,149,121 |  |  | $ | 1,810 |  |  | $ | 12,150,931 |  |  | $ | 12,054,818 |  |  | $ | 2,152 |  |  | $ | 12,056,970 |
CRE: |  |  |  |  |  |  |  |  |  |  |  |
CRE |  | 10,165,247 |  |  | 113,201 |  |  | 10,278,448 |  |  | 9,097,165 |  |  | 163,034 |  |  | 9,260,199 |
Multifamily residential |  | 2,834,212 |  |  | 22,162 |  |  | 2,856,374 |  |  | 2,433,924 |  |  | 36,744 |  |  | 2,470,668 |
Construction and land |  | 628,459 |  |  | 40 |  |  | 628,499 |  |  | 538,752 |  |  | 42 |  |  | 538,794 |
Total CRE |  | 13,627,918 |  |  | 135,403 |  |  | 13,763,321 |  |  | 12,069,841 |  |  | 199,820 |  |  | 12,269,661 |
Total commercial |  | 25,777,039 |  |  | 137,213 |  |  | 25,914,252 |  |  | 24,124,659 |  |  | 201,972 |  |  | 24,326,631 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage: |  |  |  |  |  |  |  |  |  |  |  |
Single-family residential |  | 7,028,979 |  |  | 79,611 |  |  | 7,108,590 |  |  | 5,939,258 |  |  | 97,196 |  |  | 6,036,454 |
HELOCs |  | 1,466,736 |  |  | 6,047 |  |  | 1,472,783 |  |  | 1,681,979 |  |  | 8,855 |  |  | 1,690,834 |
Total residential mortgage |  | 8,495,715 |  |  | 85,658 |  |  | 8,581,373 |  |  | 7,621,237 |  |  | 106,051 |  |  | 7,727,288 |
Other consumer |  | 282,914 |  |  | — |  |  | 282,914 |  |  | 331,270 |  |  | — |  |  | 331,270 |
Total consumer |  | 8,778,629 |  |  | 85,658 |  |  | 8,864,287 |  |  | 7,952,507 |  |  | 106,051 |  |  | 8,058,558 |
Total loans held-for-investment |  | $ | 34,555,668 |  |  | $ | 222,871 |  |  | $ | 34,778,539 |  |  | $ | 32,077,166 |  |  | $ | 308,023 |  |  | $ | 32,385,189 |
Allowance for loan losses |  | (358,287 | ) |  | — |  |  | (358,287 | ) |  | (311,300 | ) |  | (22 | ) |  | (311,322 | )
Loans held-for-investment, net |  | $ | 34,197,381 |  |  | $ | 222,871 |  |  | $ | 34,420,252 |  |  | $ | 31,765,866 |  |  | $ | 308,001 |  |  | $ | 32,073,867 |
(1) | Includes net deferred loan fees, unearned fees, unamortized premiums and unaccreted discounts of $(43.2) million and $(48.9) million as of December 31, 2019 and 2018, respectively.
(2) | Includes ASC 310-30 discount of $14.3 million and $22.2 million as of December 31, 2019 and 2018, respectively.
The commercial portfolio includes C&I, CRE, multifamily residential, and construction and land loans. The consumer portfolio includes single-family residential, HELOC and other consumer loans. The C&I loan portfolio, which is comprised of commercial business and trade finance loans, provides financing to businesses in a wide spectrum of industries. The CRE loan portfolio consists of income producing real estate loans that are either owner occupied, or non-owner occupied where 50% or more of the debt service for the loan is primarily provided by unaffiliated rental income from a third party. The multifamily residential loan portfolio is largely comprised of loans secured by residential properties with five or more units in the Bank’s primary lending areas. Construction and land loans mainly provide construction financing for hotels, offices and industrial projects and the purchase of land. In the consumer portfolio, the Company offers single-family residential loans and HELOCs through a variety of mortgage loan programs. A substantial number of these loans are originated through a reduced documentation loan program, in which a substantial down payment is required, resulting in a low loan-to-value ratio at origination, typically 60% or less. The Company is in a first lien position for many of these reduced documentation single-family residential loans and HELOCs. These loans have historically experienced low delinquency and default rates. Other consumer loans are mainly comprised of insurance premium financing loans. As of December 31, 2019 and 2018, loans of $22.43 billion and $20.59 billion, respectively, were pledged to secure borrowings and provide additional borrowing capacity from the FRB and the FHLB. Credit Quality Indicators All loans are subject to the Company’s credit review and monitoring. For the commercial portfolio, loans are risk rated based on an analysis of the current state of the borrower’s payment performance or delinquency, repayment sources, financial and liquidity factors that include industry and geographic considerations. For the majority of the consumer portfolio, payment performance or delinquency is the driving indicator for the risk ratings. For the Company’s internal credit risk ratings, each individual loan is given a risk rating of 1 through 10. Loans risk-rated 1 through 5 are assigned an internal risk rating of “Pass”, with loans risk-rated 1 being fully secured by cash or U.S. government securities. Pass loans have sufficient sources of repayment in order to repay the loan in full in accordance with all terms and conditions. Loans risk-rated 6 are loans that have potential weaknesses that warrant closer attention by management and are assigned an internal risk rating of “Special Mention”. Loans risk-rated 7 and 8 are loans that have well-defined weaknesses that may jeopardize the full and timely repayment of the loan and are assigned an internal risk rating of “Substandard”. Loans risk-rated 9 are loans that have insufficient sources of repayment and a high probability of loss and are assigned an internal risk rating of “Doubtful”. Loans risk-rated 10 are loans that are uncollectable and of such little value that they are no longer considered bankable assets and are assigned an internal risk rating of “Loss”. These internal risk ratings are reviewed routinely and adjusted based on changes in the borrowers’ financial status and the loans’ collectability. The following tables present the credit risk ratings for non-PCI loans by loan type as of December 31, 2019 and 2018:
($ in thousands) |  | December 31, 2019
| Pass |  | Special Mention |  | Substandard |  | Doubtful |  | Total Non- PCI Loans
Commercial: |  |  |  |  |  |  |  |  |  |
C&I |  | $ | 11,423,094 |  |  | $ | 406,543 |  |  | $ | 302,509 |  |  | $ | 16,975 |  |  | $ | 12,149,121 |
CRE: |  |  |  |  |  |  |  |  |  |
CRE |  | 10,003,749 |  |  | 83,683 |  |  | 77,815 |  |  | — |  |  | 10,165,247 |
Multifamily residential |  | 2,806,475 |  |  | 20,406 |  |  | 7,331 |  |  | — |  |  | 2,834,212 |
Construction and land |  | 603,447 |  |  | — |  |  | 25,012 |  |  | — |  |  | 628,459 |
Total CRE |  | 13,413,671 |  |  | 104,089 |  |  | 110,158 |  |  | — |  |  | 13,627,918 |
Total commercial |  | 24,836,765 |  |  | 510,632 |  |  | 412,667 |  |  | 16,975 |  |  | 25,777,039 |
Consumer: |  |  |  |  |  |  |  |  |  |
Residential mortgage: |  |  |  |  |  |  |  |  |  |
Single-family residential |  | 7,012,522 |  |  | 2,278 |  |  | 14,179 |  |  | — |  |  | 7,028,979 |
HELOCs |  | 1,453,207 |  |  | 2,787 |  |  | 10,742 |  |  | — |  |  | 1,466,736 |
Total residential mortgage |  | 8,465,729 |  |  | 5,065 |  |  | 24,921 |  |  | — |  |  | 8,495,715 |
Other consumer |  | 280,392 |  |  | 5 |  |  | 2,517 |  |  | — |  |  | 282,914 |
Total consumer |  | 8,746,121 |  |  | 5,070 |  |  | 27,438 |  |  | — |  |  | 8,778,629 |
Total |  | $ | 33,582,886 |  |  | $ | 515,702 |  |  | $ | 440,105 |  |  | $ | 16,975 |  |  | $ | 34,555,668 |
($ in thousands) |  | December 31, 2018
| Pass/Watch |  | Special Mention |  | Substandard |  | Doubtful |  | Total Non- PCI Loans
Commercial: |  |  |  |  |  |  |  |  |  |
C&I |  | $ | 11,644,470 |  |  | $ | 260,089 |  |  | $ | 139,844 |  |  | $ | 10,415 |  |  | $ | 12,054,818 |
CRE: |  |  |  |  |  |  |  |  |  |
CRE |  | 8,957,228 |  |  | 49,705 |  |  | 90,232 |  |  | — |  |  | 9,097,165 |
Multifamily residential |  | 2,402,991 |  |  | 20,551 |  |  | 10,382 |  |  | — |  |  | 2,433,924 |
Construction and land |  | 485,217 |  |  | 19,838 |  |  | 33,697 |  |  | — |  |  | 538,752 |
Total CRE |  | 11,845,436 |  |  | 90,094 |  |  | 134,311 |  |  | — |  |  | 12,069,841 |
Total commercial |  | 23,489,906 |  |  | 350,183 |  |  | 274,155 |  |  | 10,415 |  |  | 24,124,659 |
Consumer: |  |  |  |  |  |  |  |  |  |
Residential mortgage: |  |  |  |  |  |  |  |  |  |
Single-family residential |  | 5,925,584 |  |  | 6,376 |  |  | 7,298 |  |  | — |  |  | 5,939,258 |
HELOCs |  | 1,669,300 |  |  | 1,576 |  |  | 11,103 |  |  | — |  |  | 1,681,979 |
Total residential mortgage |  | 7,594,884 |  |  | 7,952 |  |  | 18,401 |  |  | — |  |  | 7,621,237 |
Other consumer |  | 328,767 |  |  | 1 |  |  | 2,502 |  |  | — |  |  | 331,270 |
Total consumer |  | 7,923,651 |  |  | 7,953 |  |  | 20,903 |  |  | — |  |  | 7,952,507 |
Total |  | $ | 31,413,557 |  |  | $ | 358,136 |  |  | $ | 295,058 |  |  | $ | 10,415 |  |  | $ | 32,077,166 |
The following tables present the credit risk ratings for PCI loans by loan type as of December 31, 2019 and 2018:
($ in thousands) |  | December 31, 2019
| Pass |  | Special Mention |  | Substandard |  | Doubtful |  | Total PCI Loans
Commercial: |  |  |  |  |  |  |  |  |  |
C&I |  | $ | 1,810 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1,810 |
CRE: |  |  |  |  |  |  |  |  |  |
CRE |  | 102,257 |  |  | — |  |  | 10,944 |  |  | — |  |  | 113,201 |
Multifamily residential |  | 22,162 |  |  | — |  |  | — |  |  | — |  |  | 22,162 |
Construction and land |  | 40 |  |  | — |  |  | — |  |  | — |  |  | 40 |
Total CRE |  | 124,459 |  |  | — |  |  | 10,944 |  |  | — |  |  | 135,403 |
Total commercial |  | 126,269 |  |  | — |  |  | 10,944 |  |  | — |  |  | 137,213 |
Consumer: |  |  |  |  |  |  |  |  |  |
Residential mortgage: |  |  |  |  |  |  |  |  |  |
Single-family residential |  | 79,517 |  |  | — |  |  | 94 |  |  | — |  |  | 79,611 |
HELOCs |  | 5,849 |  |  | — |  |  | 198 |  |  | — |  |  | 6,047 |
Total residential mortgage |  | 85,366 |  |  | — |  |  | 292 |  |  | — |  |  | 85,658 |
Total consumer |  | 85,366 |  |  | — |  |  | 292 |  |  | — |  |  | 85,658 |
Total (1) |  | $ | 211,635 |  |  | $ | — |  |  | $ | 11,236 |  |  | $ | — |  |  | $ | 222,871 |
($ in thousands) |  | December 31, 2018
| Pass/Watch |  | Special Mention |  | Substandard |  | Doubtful |  | Total PCI Loans
Commercial: |  |  |  |  |  |  |  |  |  |
C&I |  | $ | 1,996 |  |  | $ | — |  |  | $ | 156 |  |  | $ | — |  |  | $ | 2,152 |
CRE: |  |  |  |  |  |  |  |  |  |
CRE |  | 143,839 |  |  | — |  |  | 19,195 |  |  | — |  |  | 163,034 |
Multifamily residential |  | 35,221 |  |  | — |  |  | 1,523 |  |  | — |  |  | 36,744 |
Construction and land |  | 42 |  |  | — |  |  | — |  |  | — |  |  | 42 |
Total CRE |  | 179,102 |  |  | — |  |  | 20,718 |  |  | — |  |  | 199,820 |
Total commercial |  | 181,098 |  |  | — |  |  | 20,874 |  |  | — |  |  | 201,972 |
Consumer: |  |  |  |  |  |  |  |  |  |
Residential mortgage: |  |  |  |  |  |  |  |  |  |
Single-family residential |  | 95,789 |  |  | 1,021 |  |  | 386 |  |  | — |  |  | 97,196 |
HELOCs |  | 8,314 |  |  | 256 |  |  | 285 |  |  | — |  |  | 8,855 |
Total residential mortgage |  | 104,103 |  |  | 1,277 |  |  | 671 |  |  | — |  |  | 106,051 |
Total consumer |  | 104,103 |  |  | 1,277 |  |  | 671 |  |  | — |  |  | 106,051 |
Total (1) |  | $ | 285,201 |  |  | $ | 1,277 |  |  | $ | 21,545 |  |  | $ | — |  |  | $ | 308,023 |
(1) | Loans net of ASC 310-30 discount.
Nonaccrual and Past Due Loans Non-PCI loans that are 90 or more days past due are generally placed on nonaccrual status, unless the loan is well-collateralized or guaranteed by government agencies, and in the process of collection. Non-PCI loans that are less than 90 days past due but have identified deficiencies, such as when the full collection of principal or interest becomes uncertain, are also placed on nonaccrual status. The following tables present the aging analysis on non-PCI loans as of December 31, 2019 and 2018:
($ in thousands) |  | December 31, 2019
| Accruing Loans 30-59 Days Past Due |  | Accruing Loans 60-89 Days Past Due |  | Total Accruing Past Due Loans |  | Nonaccrual Loans Less Than 90 Days Past Due |  | Nonaccrual Loans 90 or More Days Past Due |  | Total Nonaccrual Loans |  | Current Accruing Loans |  | Total Non- PCI Loans
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
C&I |  | $ | 31,121 |  |  | $ | 17,034 |  |  | $ | 48,155 |  |  | $ | 31,084 |  |  | $ | 43,751 |  |  | $ | 74,835 |  |  | $ | 12,026,131 |  |  | $ | 12,149,121 |
CRE: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
CRE |  | 22,830 |  |  | 1,977 |  |  | 24,807 |  |  | 540 |  |  | 15,901 |  |  | 16,441 |  |  | 10,123,999 |  |  | 10,165,247 |
Multifamily residential |  | 198 |  |  | 531 |  |  | 729 |  |  | 534 |  |  | 285 |  |  | 819 |  |  | 2,832,664 |  |  | 2,834,212 |
Construction and land |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 628,459 |  |  | 628,459 |
Total CRE |  | 23,028 |  |  | 2,508 |  |  | 25,536 |  |  | 1,074 |  |  | 16,186 |  |  | 17,260 |  |  | 13,585,122 |  |  | 13,627,918 |
Total commercial |  | 54,149 |  |  | 19,542 |  |  | 73,691 |  |  | 32,158 |  |  | 59,937 |  |  | 92,095 |  |  | 25,611,253 |  |  | 25,777,039 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Single-family residential |  | 15,443 |  |  | 5,074 |  |  | 20,517 |  |  | 1,964 |  |  | 12,901 |  |  | 14,865 |  |  | 6,993,597 |  |  | 7,028,979 |
HELOCs |  | 4,273 |  |  | 2,791 |  |  | 7,064 |  |  | 1,448 |  |  | 9,294 |  |  | 10,742 |  |  | 1,448,930 |  |  | 1,466,736 |
Total residential mortgage |  | 19,716 |  |  | 7,865 |  |  | 27,581 |  |  | 3,412 |  |  | 22,195 |  |  | 25,607 |  |  | 8,442,527 |  |  | 8,495,715 |
Other consumer |  | 6 |  |  | 5 |  |  | 11 |  |  | — |  |  | 2,517 |  |  | 2,517 |  |  | 280,386 |  |  | 282,914 |
Total consumer |  | 19,722 |  |  | 7,870 |  |  | 27,592 |  |  | 3,412 |  |  | 24,712 |  |  | 28,124 |  |  | 8,722,913 |  |  | 8,778,629 |
Total |  | $ | 73,871 |  |  | $ | 27,412 |  |  | $ | 101,283 |  |  | $ | 35,570 |  |  | $ | 84,649 |  |  | $ | 120,219 |  |  | $ | 34,334,166 |  |  | $ | 34,555,668 |
($ in thousands) |  | December 31, 2018
| Accruing Loans 30-59 Days Past Due |  | Accruing Loans 60-89 Days Past Due |  | Total Accruing Past Due Loans |  | Nonaccrual Loans Less Than 90 Days Past Due |  | Nonaccrual Loans 90 or More Days Past Due |  | Total Nonaccrual Loans |  | Current Accruing Loans |  | Total Non- PCI Loans
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
C&I |  | $ | 21,032 |  |  | $ | 19,170 |  |  | $ | 40,202 |  |  | $ | 17,097 |  |  | $ | 26,743 |  |  | $ | 43,840 |  |  | $ | 11,970,776 |  |  | $ | 12,054,818 |
CRE: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
CRE |  | 7,740 |  |  | — |  |  | 7,740 |  |  | 3,704 |  |  | 20,514 |  |  | 24,218 |  |  | 9,065,207 |  |  | 9,097,165 |
Multifamily residential |  | 4,174 |  |  | — |  |  | 4,174 |  |  | 1,067 |  |  | 193 |  |  | 1,260 |  |  | 2,428,490 |  |  | 2,433,924 |
Construction and land |  | 207 |  |  | — |  |  | 207 |  |  | — |  |  | — |  |  | — |  |  | 538,545 |  |  | 538,752 |
Total CRE |  | 12,121 |  |  | — |  |  | 12,121 |  |  | 4,771 |  |  | 20,707 |  |  | 25,478 |  |  | 12,032,242 |  |  | 12,069,841 |
Total commercial |  | 33,153 |  |  | 19,170 |  |  | 52,323 |  |  | 21,868 |  |  | 47,450 |  |  | 69,318 |  |  | 24,003,018 |  |  | 24,124,659 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Single-family residential |  | 14,645 |  |  | 7,850 |  |  | 22,495 |  |  | 509 |  |  | 4,750 |  |  | 5,259 |  |  | 5,911,504 |  |  | 5,939,258 |
HELOCs |  | 2,573 |  |  | 1,816 |  |  | 4,389 |  |  | 1,423 |  |  | 7,191 |  |  | 8,614 |  |  | 1,668,976 |  |  | 1,681,979 |
Total residential mortgage |  | 17,218 |  |  | 9,666 |  |  | 26,884 |  |  | 1,932 |  |  | 11,941 |  |  | 13,873 |  |  | 7,580,480 |  |  | 7,621,237 |
Other consumer |  | 11 |  |  | 12 |  |  | 23 |  |  | — |  |  | 2,502 |  |  | 2,502 |  |  | 328,745 |  |  | 331,270 |
Total consumer |  | 17,229 |  |  | 9,678 |  |  | 26,907 |  |  | 1,932 |  |  | 14,443 |  |  | 16,375 |  |  | 7,909,225 |  |  | 7,952,507 |
Total |  | $ | 50,382 |  |  | $ | 28,848 |  |  | $ | 79,230 |  |  | $ | 23,800 |  |  | $ | 61,893 |  |  | $ | 85,693 |  |  | $ | 31,912,243 |  |  | $ | 32,077,166 |
For information on the policy for recording payments received and resuming accrual of interest on non-PCI loans that are placed on nonaccrual status, see Note 1 — Summary of Significant Accounting Policies — Loans Held-for-Investment to the Consolidated Financial Statements in this Form 10-K. PCI loans are excluded from the above aging analysis tables as the Company has elected to account for these loans on a pool level basis under ASC 310-30 at the time of acquisition. Refer to the discussion on PCI loans within this note for additional details on interest income recognition. As of December 31, 2019 and 2018, PCI loans on nonaccrual status totaled $297 thousand and $4.0 million, respectively. Loans in Process of Foreclosure The Company commences the foreclosure process on consumer mortgage loans when a borrower becomes 120 days delinquent in accordance with Consumer Finance Protection Bureau Guidelines. As of December 31, 2019 and 2018, consumer mortgage loans of $7.2 million and $3.0 million, respectively, were secured by residential real estate properties, for which formal foreclosure proceedings were in process in accordance with local requirements of the applicable jurisdictions. As of both December 31, 2019 and 2018, no foreclosed residential real estate property was included in total net OREO of $125 thousand and $133 thousand, respectively. Troubled Debt Restructurings TDRs are individually evaluated and the type of restructuring is selected based on the loan type and the circumstances of the borrower’s financial difficulty. A TDR is a modification of the terms of a loan when the Company, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower that it would not have otherwise considered. The following tables present the additions to non-PCI TDRs for the years ended December 31, 2019, 2018 and 2017:
($ in thousands) |  | Loans Modified as TDRs During the Year Ended December 31, 2019
| Number of Loans |  | Pre-Modification Outstanding Recorded Investment |  | Post-Modification Outstanding Recorded Investment (1) |  | Financial Impact (2)
Commercial: |  |  |  |  |  |  |  |
C&I |  | 8 |  |  | $ | 95,742 |  |  | $ | 71,332 |  |  | $ | 8,004 |
CRE: |  |  |  |  |  |  |  |
Construction and land |  | 1 |  |  | 19,696 |  |  | 19,691 |  |  | — |
Total CRE |  | 1 |  |  | 19,696 |  |  | 19,691 |  |  | — |
Total commercial |  | 9 |  |  | $ | 115,438 |  |  | $ | 91,023 |  |  | $ | 8,004 |
Consumer: |  |  |  |  |  |  |  |
Residential mortgage: |  |  |  |  |  |  |  |
Single-family residential |  | 2 |  |  | $ | 1,123 |  |  | $ | 1,098 |  |  | $ | 2 |
HELOCs |  | 2 |  |  | 539 |  |  | 528 |  |  | — |
Total residential mortgage |  | 4 |  |  | 1,662 |  |  | 1,626 |  |  | 2 |
Total consumer |  | 4 |  |  | $ | 1,662 |  |  | $ | 1,626 |  |  | $ | 2 |
($ in thousands) |  | Loans Modified as TDRs During the Year Ended December 31, 2018
| Number of Loans |  | Pre-Modification Outstanding Recorded Investment |  | Post-Modification Outstanding Recorded Investment (1) |  | Financial Impact (2)
Commercial: |  |  |  |  |  |  |  |
C&I |  | 8 |  |  | $ | 11,366 |  |  | $ | 9,520 |  |  | $ | 699 |
CRE: |  |  |  |  |  |  |  |
CRE |  | 1 |  |  | 750 |  |  | 752 |  |  | — |
Total CRE |  | 1 |  |  | 750 |  |  | 752 |  |  | — |
Total commercial |  | 9 |  |  | $ | 12,116 |  |  | $ | 10,272 |  |  | $ | 699 |
Consumer: |  |  |  |  |  |  |  |
Residential mortgage: |  |  |  |  |  |  |  |
Single-family residential |  | 2 |  |  | $ | 405 |  |  | $ | 391 |  |  | $ | (28 | )
HELOCs |  | 2 |  |  | 1,546 |  |  | 1,418 |  |  | — |
Total residential mortgage |  | 4 |  |  | 1,951 |  |  | 1,809 |  |  | (28 | )
Total consumer |  | 4 |  |  | $ | 1,951 |  |  | $ | 1,809 |  |  | $ | (28 | )
($ in thousands) |  | Loans Modified as TDRs During the Year Ended December 31, 2017
| Number of Loans |  | Pre-Modification Outstanding Recorded Investment |  | Post-Modification Outstanding Recorded Investment (1) |  | Financial Impact (2)
Commercial: |  |  |  |  |  |  |  |
C&I |  | 16 |  |  | $ | 43,884 |  |  | $ | 37,900 |  |  | $ | 11,520 |
CRE: |  |  |  |  |  |  |  |
CRE |  | 4 |  |  | 2,675 |  |  | 2,627 |  |  | 157 |
Multifamily residential |  | 1 |  |  | 3,655 |  |  | 2,969 |  |  | — |
Total CRE |  | 5 |  |  | 6,330 |  |  | 5,596 |  |  | 157 |
Total commercial |  | 21 |  |  | $ | 50,214 |  |  | $ | 43,496 |  |  | $ | 11,677 |
Consumer: |  |  |  |  |  |  |  |
Residential mortgage: |  |  |  |  |  |  |  |
HELOCs |  | 1 |  |  | $ | 152 |  |  | $ | 155 |  |  | $ | — |
Total residential mortgage |  | 1 |  |  | 152 |  |  | 155 |  |  | — |
Total consumer |  | 1 |  |  | $ | 152 |  |  | $ | 155 |  |  | $ | — |
(1) | Includes subsequent payments after modification and reflects the balance as of December 31, 2019, 2018 and 2017.
(2) | The financial impact includes charge-offs and specific reserves recorded since the modification date.
The following tables present the non-PCI TDR modifications for the years ended December 31, 2019, 2018 and 2017 by modification type:
($ in thousands) |  | Modification Type During the Year Ended December 31, 2019
| Principal (1) |  | Principal and Interest (2) |  | Interest Rate Reduction |  | Other (3) |  | Total
Commercial: |  |  |  |  |  |  |  |  |  |
C&I |  | $ | 31,611 |  |  | $ | — |  |  | $ | — |  |  | $ | 39,721 |  |  | $ | 71,332 |
CRE: |  |  |  |  |  |  |  |  |  |
Construction and land |  | — |  |  | — |  |  | 19,691 |  |  | — |  |  | 19,691 |
Total CRE |  | — |  |  | — |  |  | 19,691 |  |  | — |  |  | 19,691 |
Total commercial |  | 31,611 |  |  | — |  |  | 19,691 |  |  | 39,721 |  |  | 91,023 |
Consumer: |  |  |  |  |  |  |  |  |  |
Residential mortgage: |  |  |  |  |  |  |  |  |  |
Single-family residential |  | — |  |  | 1,098 |  |  | — |  |  | — |  |  | 1,098 |
HELOCs |  | — |  |  | 397 |  |  | — |  |  | 131 |  |  | 528 |
Total residential mortgage |  | — |  |  | 1,495 |  |  | — |  |  | 131 |  |  | 1,626 |
Total consumer |  | — |  |  | 1,495 |  |  | — |  |  | 131 |  |  | 1,626 |
Total |  | $ | 31,611 |  |  | $ | 1,495 |  |  | $ | 19,691 |  |  | $ | 39,852 |  |  | $ | 92,649 |
($ in thousands) |  | Modification Type During the Year Ended December 31, 2018
| Principal (1) |  | Principal and Interest (2) |  | Interest Rate Reduction |  | Other (3) |  | Total
Commercial: |  |  |  |  |  |  |  |  |  |
C&I |  | $ | 5,472 |  |  | $ | — |  |  | $ | — |  |  | $ | 4,048 |  |  | $ | 9,520 |
CRE: |  |  |  |  |  |  |  |  |  |
CRE |  | — |  |  | — |  |  | 752 |  |  | — |  |  | 752 |
Total CRE |  | — |  |  | — |  |  | 752 |  |  | — |  |  | 752 |
Total commercial |  | 5,472 |  |  | — |  |  | 752 |  |  | 4,048 |  |  | 10,272 |
Consumer: |  |  |  |  |  |  |  |  |  |
Residential mortgage: |  |  |  |  |  |  |  |  |  |
Single-family residential |  | 66 |  |  | — |  |  | — |  |  | 325 |  |  | 391 |
HELOCs |  | 1,353 |  |  | — |  |  | — |  |  | 65 |  |  | 1,418 |
Total residential mortgage |  | 1,419 |  |  | — |  |  | — |  |  | 390 |  |  | 1,809 |
Total consumer |  | 1,419 |  |  | — |  |  | — |  |  | 390 |  |  | 1,809 |
Total |  | $ | 6,891 |  |  | $ | — |  |  | $ | 752 |  |  | $ | 4,438 |  |  | $ | 12,081 |
($ in thousands) |  | Modification Type During the Year Ended December 31, 2017
| Principal (1) |  | Principal and Interest (2) |  | Interest Rate Reduction |  | Other (3) |  | Total
Commercial: |  |  |  |  |  |  |  |  |  |
C&I |  | $ | 13,568 |  |  | $ | 7,848 |  |  | $ | — |  |  | $ | 16,484 |  |  | $ | 37,900 |
CRE: |  |  |  |  |  |  |  |  |  |
CRE |  | 2,627 |  |  | — |  |  | — |  |  | — |  |  | 2,627 |
Multifamily residential |  | 2,969 |  |  | — |  |  | — |  |  | — |  |  | 2,969 |
Total CRE |  | 5,596 |  |  | — |  |  | — |  |  | — |  |  | 5,596 |
Total commercial |  | 19,164 |  |  | 7,848 |  |  | — |  |  | 16,484 |  |  | 43,496 |
Consumer: |  |  |  |  |  |  |  |  |  |
Residential mortgage: |  |  |  |  |  |  |  |  |  |
HELOCs |  | — |  |  | 155 |  |  | — |  |  | — |  |  | 155 |
Total residential mortgage |  | — |  |  | 155 |  |  | — |  |  | — |  |  | 155 |
Total consumer |  | — |  |  | 155 |  |  | — |  |  | — |  |  | 155 |
Total |  | $ | 19,164 |  |  | $ | 8,003 |  |  | $ | — |  |  | $ | 16,484 |  |  | $ | 43,651 |
(1) | Includes forbearance payments, term extensions and principal deferments that modify the terms of the loan from principal and interest payments to interest payments only.
(2) | Includes principal and interest deferments or reductions.
(3) | Includes primarily funding to secure additional collateral and provides liquidity to collateral-dependent C&I loans.
Subsequent to restructuring, if a TDR that becomes delinquent, generally beyond 90 days past due, it is considered to be in default. TDRs are individually evaluated for impairment under the specific reserve methodology, subsequent defaults do not generally have a significant additional impact on the allowance for loan losses. The following table presents information on loans for which a subsequent default occurred during the years ended December 31, 2019, 2018 and 2017, that had been modified as TDR within 12 months or less of its default, and were still in default at the respective period end:
($ in thousands) |  | Loans Modified as TDRs that Subsequently Defaulted During the Year Ended December 31,
| 2019 |  | 2018 |  | 2017
| Number of Loans |  | Recorded Investment |  | Number of Loans |  | Recorded Investment |  | Number of Loans |  | Recorded Investment
Commercial: |  |  |  |  |  |  |  |  |  |  |  |
C&I |  | 3 |  |  | $ | 13,112 |  |  | 4 |  |  | $ | 1,890 |  |  | 3 |  |  | $ | 8,659 |
CRE: |  |  |  |  |  |  |  |  |  |  |  |
CRE |  | — |  |  | $ | — |  |  | 1 |  |  | $ | 186 |  |  | — |  |  | $ | — |
Total CRE |  | — |  |  | $ | — |  |  | 1 |  |  | $ | 186 |  |  | — |  |  | $ | — |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage: |  |  |  |  |  |  |  |  |  |  |  |
HELOCs |  | — |  |  | $ | — |  |  | 1 |  |  | $ | 150 |  |  | — |  |  | $ | — |
Total residential mortgage |  | — |  |  | $ | — |  |  | 1 |  |  | $ | 150 |  |  | — |  |  | $ | — |
The amount of additional funds committed to lend to borrowers whose terms have been modified as TDRs was $2.2 million and $3.9 million as of December 31, 2019 and 2018, respectively. Impaired Loans The following tables present information on non-PCI impaired loans as of December 31, 2019 and 2018:
($ in thousands) |  | December 31, 2019
| Unpaid Principal Balance |  | Recorded Investment With No Allowance |  | Recorded Investment With Allowance |  | Total Recorded Investment |  | Related Allowance
Commercial: |  |  |  |  |  |  |  |  |  |
C&I |  | $ | 174,656 |  |  | $ | 73,956 |  |  | $ | 40,086 |  |  | $ | 114,042 |  |  | $ | 2,881 |
CRE: |  |  |  |  |  |  |  |  |  |
CRE |  | 27,601 |  |  | 20,098 |  |  | 1,520 |  |  | 21,618 |  |  | 97 |
Multifamily residential |  | 4,965 |  |  | 1,371 |  |  | 3,093 |  |  | 4,464 |  |  | 55 |
Construction and land |  | 19,696 |  |  | 19,691 |  |  | — |  |  | 19,691 |  |  | — |
Total CRE |  | 52,262 |  |  | 41,160 |  |  | 4,613 |  |  | 45,773 |  |  | 152 |
Total commercial |  | 226,918 |  |  | 115,116 |  |  | 44,699 |  |  | 159,815 |  |  | 3,033 |
Consumer: |  |  |  |  |  |  |  |  |  |
Residential mortgage: |  |  |  |  |  |  |  |  |  |
Single-family residential |  | 23,626 |  |  | 8,507 |  |  | 13,704 |  |  | 22,211 |  |  | 35 |
HELOCs |  | 13,711 |  |  | 6,125 |  |  | 7,449 |  |  | 13,574 |  |  | 8 |
Total residential mortgage |  | 37,337 |  |  | 14,632 |  |  | 21,153 |  |  | 35,785 |  |  | 43 |
Other consumer |  | 2,517 |  |  | — |  |  | 2,517 |  |  | 2,517 |  |  | 2,517 |
Total consumer |  | 39,854 |  |  | 14,632 |  |  | 23,670 |  |  | 38,302 |  |  | 2,560 |
Total non-PCI impaired loans |  | $ | 266,772 |  |  | $ | 129,748 |  |  | $ | 68,369 |  |  | $ | 198,117 |  |  | $ | 5,593 |
($ in thousands) |  | December 31, 2018
| Unpaid Principal Balance |  | Recorded Investment With No Allowance |  | Recorded Investment With Allowance |  | Total Recorded Investment |  | Related Allowance
Commercial: |  |  |  |  |  |  |  |  |  |
C&I |  | $ | 82,963 |  |  | $ | 48,479 |  |  | $ | 8,609 |  |  | $ | 57,088 |  |  | $ | 1,219 |
CRE: |  |  |  |  |  |  |  |  |  |
CRE |  | 36,426 |  |  | 28,285 |  |  | 2,067 |  |  | 30,352 |  |  | 208 |
Multifamily residential |  | 6,031 |  |  | 2,949 |  |  | 2,611 |  |  | 5,560 |  |  | 75 |
Total CRE |  | 42,457 |  |  | 31,234 |  |  | 4,678 |  |  | 35,912 |  |  | 283 |
Total commercial |  | 125,420 |  |  | 79,713 |  |  | 13,287 |  |  | 93,000 |  |  | 1,502 |
Consumer: |  |  |  |  |  |  |  |  |  |
Residential mortgage: |  |  |  |  |  |  |  |  |  |
Single-family residential |  | 14,670 |  |  | 2,552 |  |  | 10,908 |  |  | 13,460 |  |  | 34 |
HELOCs |  | 10,035 |  |  | 5,547 |  |  | 4,409 |  |  | 9,956 |  |  | 5 |
Total residential mortgage |  | 24,705 |  |  | 8,099 |  |  | 15,317 |  |  | 23,416 |  |  | 39 |
Other consumer |  | 2,502 |  |  | — |  |  | 2,502 |  |  | 2,502 |  |  | 2,491 |
Total consumer |  | 27,207 |  |  | 8,099 |  |  | 17,819 |  |  | 25,918 |  |  | 2,530 |
Total non-PCI impaired loans |  | $ | 152,627 |  |  | $ | 87,812 |  |  | $ | 31,106 |  |  | $ | 118,918 |  |  | $ | 4,032 |
The following table presents the average recorded investment and interest income recognized on non-PCI impaired loans for the years ended December 31, 2019, 2018 and 2017:
($ in thousands) |  | Year Ended December 31,
| 2019 |  | 2018 |  | 2017
| Average Recorded Investment |  | Recognized Interest Income (1) |  | Average Recorded Investment |  | Recognized Interest Income (1) |  | Average Recorded Investment |  | Recognized Interest Income (1)
Commercial: |  |  |  |  |  |  |  |  |  |  |  |
C&I |  | $ | 248,619 |  |  | $ | 2,932 |  |  | $ | 143,430 |  |  | $ | 1,046 |  |  | $ | 110,662 |  |  | $ | 1,517 |
CRE: |  |  |  |  |  |  |  |  |  |  |  |
CRE |  | 33,046 |  |  | 464 |  |  | 35,049 |  |  | 491 |  |  | 36,003 |  |  | 578 |
Multifamily residential |  | 6,116 |  |  | 228 |  |  | 11,742 |  |  | 249 |  |  | 11,455 |  |  | 422 |
Construction and land |  | 19,691 |  |  | 68 |  |  | 3,973 |  |  | — |  |  | 4,382 |  |  | — |
Total CRE |  | 58,853 |  |  | 760 |  |  | 50,764 |  |  | 740 |  |  | 51,840 |  |  | 1,000 |
Total commercial |  | 307,472 |  |  | 3,692 |  |  | 194,194 |  |  | 1,786 |  |  | 162,502 |  |  | 2,517 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage: |  |  |  |  |  |  |  |  |  |  |  |
Single-family residential |  | 37,315 |  |  | 496 |  |  | 22,350 |  |  | 474 |  |  | 14,994 |  |  | 417 |
HELOCs |  | 22,851 |  |  | 130 |  |  | 14,134 |  |  | 70 |  |  | 5,494 |  |  | 55 |
Total residential mortgage |  | 60,166 |  |  | 626 |  |  | 36,484 |  |  | 544 |  |  | 20,488 |  |  | 472 |
Other consumer |  | 2,552 |  |  | — |  |  | 2,502 |  |  | — |  |  | 2,142 |  |  | — |
Total consumer |  | 62,718 |  |  | 626 |  |  | 38,986 |  |  | 544 |  |  | 22,630 |  |  | 472 |
Total non-PCI impaired loans |  | $ | 370,190 |  |  | $ | 4,318 |  |  | $ | 233,180 |  |  | $ | 2,330 |  |  | $ | 185,132 |  |  | $ | 2,989 |
(1) | Includes interest income recognized on accruing non-PCI TDRs. Interest payments received on nonaccrual non-PCI loans are reflected as a reduction to principal, not as interest income.
For information on the policy and factors considered for impaired loans, see Note 1 — Summary of Significant Accounting Policies — Impaired Loans to the Consolidated Financial Statements. Allowance for Credit Losses The following table presents a summary of activities in the allowance for loan losses by loan type for the years ended December 31, 2019, 2018 and 2017:
($ in thousands) |  | Year Ended December 31,
| 2019 |  | 2018 |  | 2017
Non-PCI Loans |  |  |  |  |  |
Allowance for non-PCI loans, beginning of period |  | $ | 311,300 |  |  | $ | 287,070 |  |  | $ | 260,402 |
Provision for loan losses on non-PCI loans |  | 100,115 |  |  | 65,043 |  |  | 49,129 |
Gross charge-offs: |  |  |  |  |  |
Commercial: |  |  |  |  |  |
C&I |  | (73,985 | ) |  | (59,244 | ) |  | (38,118 | )
CRE: |  |  |  |  |  |
CRE |  | (1,021 | ) |  | — |  |  | — |
Multifamily residential |  | — |  |  | — |  |  | (635 | )
Construction and land |  | — |  |  | — |  |  | (149 | )
Total CRE |  | (1,021 | ) |  | — |  |  | (784 | )
Consumer: |  |  |  |  |  |
Residential mortgage: |  |  |  |  |  |
Single-family residential |  | (11 | ) |  | (1 | ) |  | (1 | )
HELOCs |  | — |  |  | — |  |  | (55 | )
Total residential mortgage |  | (11 | ) |  | (1 | ) |  | (56 | )
Other consumer |  | (50 | ) |  | (188 | ) |  | (17 | )
Total gross charge-offs |  | (75,067 | ) |  | (59,433 | ) |  | (38,975 | )
Gross recoveries: |  |  |  |  |  |
Commercial: |  |  |  |  |  |
C&I |  | 14,501 |  |  | 10,417 |  |  | 11,371 |
CRE: |  |  |  |  |  |
CRE |  | 5,209 |  |  | 5,194 |  |  | 2,111 |
Multifamily residential |  | 1,856 |  |  | 1,757 |  |  | 1,357 |
Construction and land |  | 536 |  |  | 740 |  |  | 259 |
Total CRE |  | 7,601 |  |  | 7,691 |  |  | 3,727 |
Consumer: |  |  |  |  |  |
Residential mortgage: |  |  |  |  |  |
Single-family residential |  | 136 |  |  | 1,214 |  |  | 546 |
HELOCs |  | 7 |  |  | 38 |  |  | 24 |
Total residential mortgage |  | 143 |  |  | 1,252 |  |  | 570 |
Other consumer |  | 19 |  |  | 3 |  |  | 152 |
Total gross recoveries |  | 22,264 |  |  | 19,363 |  |  | 15,820 |
Net charge-offs |  | (52,803 | ) |  | (40,070 | ) |  | (23,155 | )
Foreign currency translation adjustments |  | (325 | ) |  | (743 | ) |  | 694 |
Allowance for non-PCI loans, end of period |  | 358,287 |  |  | 311,300 |  |  | 287,070 |
PCI Loans |  |  |  |  |  |
Allowance for PCI loans, beginning of period |  | 22 |  |  | 58 |  |  | 118 |
Reversal of loan losses on PCI loans |  | (22 | ) |  | (36 | ) |  | (60 | )
Allowance for PCI loans, end of period |  | — |  |  | 22 |  |  | 58 |
Allowance for loan losses |  | $ | 358,287 |  |  | $ | 311,322 |  |  | $ | 287,128 |
For further information on accounting policies and the methodologies used to estimate the allowance for credit losses and loan charge-offs, see Note 1 — Summary of Significant Accounting Policies — Allowance for Credit Losses to the Consolidated Financial Statements in this Form 10-K. The following table presents a summary of activities in the allowance for unfunded credit commitments for the years ended December 31, 2019, 2018 and 2017:
($ in thousands) |  | Year Ended December 31,
| 2019 |  | 2018 |  | 2017
Allowance for unfunded credit commitments, beginning of period |  | $ | 12,566 |  |  | $ | 13,318 |  |  | $ | 16,121 |
Reversal of unfunded credit commitments |  | (1,408 | ) |  | (752 | ) |  | (2,803 | )
Allowance for unfunded credit commitments, end of period |  | $ | 11,158 |  |  | $ | 12,566 |  |  | $ | 13,318 |
The allowance for unfunded credit commitments is maintained at a level, which management believes to be sufficient to absorb estimated probable losses related to unfunded credit facilities. The allowance for unfunded credit commitments is included in Accrued expenses and other liabilities on the Consolidated Balance Sheet. See Note 15 — Commitments, Contingencies and Related Party Transactions to the Consolidated Financial Statements in this Form 10-K for additional information related to unfunded credit reserves. The following tables present the Company’s allowance for loan losses and recorded investments by loan type and impairment methodology as of December 31, 2019 and 2018:
($ in thousands) |  | December 31, 2019
| Commercial |  | Consumer |  | Total
|  |  | CRE |  | Residential Mortgage |  |  |
| C&I |  | CRE |  | Multifamily Residential |  | Construction and Land |  | Single-Family Residential |  | HELOCs |  | Other Consumer |
Allowance for loan losses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | $ | 2,881 |  |  | $ | 97 |  |  | $ | 55 |  |  | $ | — |  |  | $ | 35 |  |  | $ | 8 |  |  | $ | 2,517 |  |  | $ | 5,593 |
Collectively evaluated for impairment |  | 235,495 |  |  | 40,412 |  |  | 22,771 |  |  | 19,404 |  |  | 28,492 |  |  | 5,257 |  |  | 863 |  |  | 352,694 |
Acquired with deteriorated credit quality |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total |  | $ | 238,376 |  |  | $ | 40,509 |  |  | $ | 22,826 |  |  | $ | 19,404 |  |  | $ | 28,527 |  |  | $ | 5,265 |  |  | $ | 3,380 |  |  | $ | 358,287 |
Recorded investment in loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | $ | 114,042 |  |  | $ | 21,618 |  |  | $ | 4,464 |  |  | $ | 19,691 |  |  | $ | 22,211 |  |  | $ | 13,574 |  |  | $ | 2,517 |  |  | $ | 198,117 |
Collectively evaluated for impairment |  | 12,035,079 |  |  | 10,143,629 |  |  | 2,829,748 |  |  | 608,768 |  |  | 7,006,768 |  |  | 1,453,162 |  |  | 280,397 |  |  | 34,357,551 |
Acquired with deteriorated credit quality (1) |  | 1,810 |  |  | 113,201 |  |  | 22,162 |  |  | 40 |  |  | 79,611 |  |  | 6,047 |  |  | — |  |  | 222,871 |
Total (1) |  | $ | 12,150,931 |  |  | $ | 10,278,448 |  |  | $ | 2,856,374 |  |  | $ | 628,499 |  |  | $ | 7,108,590 |  |  | $ | 1,472,783 |  |  | $ | 282,914 |  |  | $ | 34,778,539 |
($ in thousands) |  | December 31, 2018
| Commercial |  | Consumer |  | Total
|  |  | CRE |  | Residential Mortgage |  |  |
| C&I |  | CRE |  | Multifamily Residential |  | Construction and Land |  | Single-Family Residential |  | HELOCs |  | Other Consumer |
Allowance for loan losses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | $ | 1,219 |  |  | $ | 208 |  |  | $ | 75 |  |  | $ | — |  |  | $ | 34 |  |  | $ | 5 |  |  | $ | 2,491 |  |  | $ | 4,032 |
Collectively evaluated for impairment |  | 187,898 |  |  | 40,436 |  |  | 19,810 |  |  | 20,290 |  |  | 31,306 |  |  | 5,769 |  |  | 1,759 |  |  | 307,268 |
Acquired with deteriorated credit quality |  | — |  |  | 22 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 22 |
Total |  | $ | 189,117 |  |  | $ | 40,666 |  |  | $ | 19,885 |  |  | $ | 20,290 |  |  | $ | 31,340 |  |  | $ | 5,774 |  |  | $ | 4,250 |  |  | $ | 311,322 |
Recorded investment in loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | $ | 57,088 |  |  | $ | 30,352 |  |  | $ | 5,560 |  |  | $ | — |  |  | $ | 13,460 |  |  | $ | 9,956 |  |  | $ | 2,502 |  |  | $ | 118,918 |
Collectively evaluated for impairment |  | 11,997,730 |  |  | 9,066,813 |  |  | 2,428,364 |  |  | 538,752 |  |  | 5,925,798 |  |  | 1,672,023 |  |  | 328,768 |  |  | 31,958,248 |
Acquired with deteriorated credit quality (1) |  | 2,152 |  |  | 163,034 |  |  | 36,744 |  |  | 42 |  |  | 97,196 |  |  | 8,855 |  |  | — |  |  | 308,023 |
Total (1) |  | $ | 12,056,970 |  |  | $ | 9,260,199 |  |  | $ | 2,470,668 |  |  | $ | 538,794 |  |  | $ | 6,036,454 |  |  | $ | 1,690,834 |  |  | $ | 331,270 |  |  | $ | 32,385,189 |
(1) | Loans net of ASC 310-30 discount.
Purchased Credit-Impaired Loans At the date of acquisition, PCI loans are pooled and accounted for at fair value, which represents the discounted value of the expected cash flows of the loan portfolio. A pool is accounted for as a single asset with a single interest rate, cumulative loss rate and cash flows expectation. The cash flows expected over the life of the pools are estimated by an internal cash flows model that projects cash flows and calculates the carrying values of the pools, book yields, effective interest income and impairment, if any, based on pool level events. Assumptions as to cumulative loss rates, loss curves and prepayment speeds are utilized to calculate the expected cash flows. The amount of expected cash flows over the initial investment in the loan represents the “accretable yield,” which is recognized as interest income on a level yield basis over the life of the loan. Projected loss rates and prepayment speeds affect the estimated life of PCI loans, which may change the amount of interest income, and possibly principal, expected to be collected. The excess of total contractual cash flows over the cash flows expected to be collected at acquisition, considering the impact of prepayments, is referred to as the “nonaccretable difference.” The following table presents the changes in accretable yield on PCI loans for the years ended December 31, 2019, 2018 and 2017:
($ in thousands) |  | Year Ended December 31,
| 2019 |  | 2018 |  | 2017
Accretable yield for PCI loans, beginning of period |  | $ | 74,870 |  |  | $ | 101,977 |  |  | $ | 136,247 |
Accretion |  | (24,220 | ) |  | (34,662 | ) |  | (42,487 | )
Changes in expected cash flows |  | (140 | ) |  | 7,555 |  |  | 8,217 |
Accretable yield for PCI loans, end of period |  | $ | 50,510 |  |  | $ | 74,870 |  |  | $ | 101,977 |
Loans Held-for-Sale At the time of commitment to originate or purchase a loan, the loan is determined to be held-for-investment if it is the Company’s intent to hold the loan to maturity or for the “foreseeable future,” subject to periodic reviews under the Company’s evaluation processes, including asset/liability and credit risk management. When the Company subsequently changes its intent to hold certain loans, the loans are transferred from held-for-investment to held-for-sale at the lower of cost or fair value. As of December 31, 2019 and 2018, loans held-for-sale of $434 thousand and $275 thousand, respectively, consisted of single-family residential loans. Loan Purchases, Transfers and Sales The Company purchases and sells loans in the secondary market in the ordinary course of business. From time to time, purchased loans may be transferred from held-for-investment to held-for-sale, and write-downs to allowance for loan losses are recorded, when appropriate. The following tables provide information about the carrying value of loans purchased for the held-for-investment portfolio, loans sold and loans transferred from held-for-investment to held-for-sale at lower of cost or fair value during the years ended December 31, 2019, 2018 and 2017:
($ in thousands) |  | Year Ended December 31, 2019
| Commercial |  | Consumer |  | Total
|  |  | CRE |  | Residential Mortgage |  |  |
| C&I |  | CRE |  | Multifamily Residential |  | Construction and Land |  | Single-Family Residential |  | HELOCs |  | Other Consumer |
Loans transferred from held-for-investment to held-for-sale (1) |  | $ | 245,002 |  |  | $ | 39,062 |  |  | $ | — |  |  | $ | 1,573 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 285,637 |
Sales (2)(3)(4) |  | $ | 245,791 |  |  | $ | 39,062 |  |  | $ | — |  |  | $ | 1,573 |  |  | $ | 10,410 |  |  | $ | — |  |  | $ | — |  |  | $ | 296,836 |
Purchases (5) |  | $ | 397,615 |  |  | $ | — |  |  | $ | 8,988 |  |  | $ | — |  |  | $ | 117,227 |  |  | $ | — |  |  | $ | — |  |  | $ | 523,830 |
($ in thousands) |  | Year Ended December 31, 2018
| Commercial |  | Consumer |  | Total
|  |  | CRE |  | Residential Mortgage |  |  |
| C&I |  | CRE |  | Multifamily Residential |  | Construction and Land |  | Single-Family Residential |  | HELOCs |  | Other Consumer |
Loans transferred from held-for-investment to held-for-sale (1) |  | $ | 404,321 |  |  | $ | 62,291 |  |  | $ | — |  |  | $ | — |  |  | $ | 14,981 |  |  | $ | — |  |  | $ | — |  |  | $ | 481,593 |
Loans transferred from held-for-sale to held-for-investment |  | $ | 2,306 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 2,306 |
Sales (2)(3)(4) |  | $ | 413,844 |  |  | $ | 62,291 |  |  | $ | — |  |  | $ | — |  |  | $ | 34,966 |  |  | $ | — |  |  | $ | — |  |  | $ | 511,101 |
Purchases (5) |  | $ | 525,767 |  |  | $ | — |  |  | $ | 7,389 |  |  | $ | — |  |  | $ | 63,781 |  |  | $ | — |  |  | $ | — |  |  | $ | 596,937 |
($ in thousands) |  | Year Ended December 31, 2017
| Commercial |  | Consumer |  | Total
|  |  | CRE |  | Residential mortgage |  |  |
| C&I |  | CRE |  | Multifamily Residential |  | Construction and Land |  | Single-Family Residential |  | HELOCs |  | Other Consumer |
Loans transferred from held-for-investment to held-for-sale (1) |  | $ | 476,644 |  |  | $ | 52,217 |  |  | $ | 531 |  |  | $ | 1,609 |  |  | $ | 249 |  |  | $ | — |  |  | $ | 3,706 |  |  | $ | 534,956 |
Loans of DCB branches transferred from held-for-investment to held-for-sale (included in Branch assets held-for-sale) (1) |  | $ | 17,590 |  |  | $ | 36,783 |  |  | $ | 12,448 |  |  | $ | 241 |  |  | $ | 6,416 |  |  | $ | 4,309 |  |  | $ | 345 |  |  | $ | 78,132 |
Sales (2)(3)(4) |  | $ | 476,644 |  |  | $ | 52,217 |  |  | $ | 531 |  |  | $ | 1,609 |  |  | $ | 21,058 |  |  | $ | — |  |  | $ | 25,905 |  |  | $ | 577,964 |
Purchases (5) |  | $ | 503,359 |  |  | $ | — |  |  | $ | 2,311 |  |  | $ | — |  |  | $ | 29,060 |  |  | $ | — |  |  | $ | — |  |  | $ | 534,730 |
(1) | The Company recorded $789 thousand, $14.6 million and $473 thousand in write-downs to the allowance for loan losses related to loans transferred from held-for-investment to held-for-sale for the years ended December 31, 2019, 2018 and 2017, respectively.
(2) | Includes originated loans sold of $230.3 million, $309.7 million and $178.2 million for the years ended December 31, 2019, 2018 and 2017, respectively. Originated loans sold were primarily comprised of C&I loans for the years ended December 31, 2019 and 2018; and C&I, CRE and single-family residential loans for the year ended December 31, 2017.
(3) | Includes purchased loans sold in the secondary market of $66.5 million, $201.4 million and $399.8 million for the years ended December 31, 2019, 2018 and 2017, respectively.
(4) | Net gains on sales of loans were $4.0 million, $6.6 million and $8.9 million for the years ended December 31, 2019, 2018 and 2017, respectively.
(5) C&I loan purchases for each of the yeas ended December 31, 2019, 2018 and 2017 were comprised of broadly syndicated C&I term loans.

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- Definition The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -URI http://asc.fasb.org/subtopic&trid=2196772 + Details
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