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Loans Receivable and Allowance for Credit Losses | 3 Months Ended
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Mar. 31, 2020
Loans and Leases Receivable Disclosure [Abstract] |
Loans Receivable and Allowance for Credit Losses | Loans Receivable and Allowance for Credit Losses On January 1, 2020, the Company adopted ASU 2016-13 using the modified retrospective method through a cumulative-effect adjustment to retained earnings. Balance sheet information and results for reporting periods beginning with January 1, 2020 are presented under ASC 326, while prior period comparisons continue to be presented under legacy GAAP. ASU 2016-13 also introduces the concept of PCD financial assets, which replaces PCI assets. The Company’s held-for-investment loan portfolio comprises both originated and purchased loans. The Company adopted ASU 2016-13 using the prospective transition approach for PCD assets that were previously classified as PCI. Prior to January 1, 2020, originated loans and purchased loans with no evidence of credit deterioration at their acquisition date were referred to collectively as non-PCI loans; while PCI loans were loans acquired with evidence of credit deterioration since their acquisition date, and for which it was probable that the Company would be unable to collect all contractually required payments. The following table presents the composition of the Company’s loans held-for-investment as of March 31, 2020 and December 31, 2019:
($ in thousands) |  | March 31, 2020 |  | December 31, 2019
| Amortized Cost (1) |  | Non-PCI Loans (1) |  | PCI Loans |  | Total (1)
Commercial: |  |  |  |  |  |  |  |
C&I |  | $ | 12,590,764 |  |  | $ | 12,149,121 |  |  | $ | 1,810 |  |  | $ | 12,150,931 |
CRE: |  |  |  |  |  |  |  |
CRE |  | 10,682,242 |  |  | 10,165,247 |  |  | 113,201 |  |  | 10,278,448 |
Multifamily residential |  | 2,902,601 |  |  | 2,834,212 |  |  | 22,162 |  |  | 2,856,374 |
Construction and land |  | 606,209 |  |  | 628,459 |  |  | 40 |  |  | 628,499 |
Total CRE |  | 14,191,052 |  |  | 13,627,918 |  |  | 135,403 |  |  | 13,763,321 |
Total commercial |  | 26,781,816 |  |  | 25,777,039 |  |  | 137,213 |  |  | 25,914,252 |
Consumer: |  |  |  |  |  |  |  |
Residential mortgage: |  |  |  |  |  |  |  |
Single-family residential |  | 7,403,723 |  |  | 7,028,979 |  |  | 79,611 |  |  | 7,108,590 |
HELOCs |  | 1,452,862 |  |  | 1,466,736 |  |  | 6,047 |  |  | 1,472,783 |
Total residential mortgage |  | 8,856,585 |  |  | 8,495,715 |  |  | 85,658 |  |  | 8,581,373 |
Other consumer |  | 254,992 |  |  | 282,914 |  |  | — |  |  | 282,914 |
Total consumer |  | 9,111,577 |  |  | 8,778,629 |  |  | 85,658 |  |  | 8,864,287 |
Total loans held-for-investment |  | $ | 35,893,393 |  |  | $ | 34,555,668 |  |  | $ | 222,871 |  |  | $ | 34,778,539 |
Allowance for loan losses |  | (557,003 | ) |  | (358,287 | ) |  | — |  |  | (358,287 | )
Loans held-for-investment, net |  | $ | 35,336,390 |  |  | $ | 34,197,381 |  |  | $ | 222,871 |  |  | $ | 34,420,252 |
(1) | Includes net deferred loan fees, unearned fees, unamortized premiums and unaccreted discounts of $(50.3) million and $(43.2) million as of March 31, 2020 and December 31, 2019, 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 includes loans and financing for businesses in a wide spectrum of industries and includes asset-based lending, equipment financing and leasing, project-based finance, revolving lines of credit, Small Business Administration lending, structured finance, term loans and trade finance. The CRE loan portfolio consists of income producing real estate loans that are either owner occupied or non-owner occupied; non-owner occupied properties are defined as those for which 50% or more of the loan debt service is primarily provided by unaffiliated rental income from a third party. The multifamily residential loan portfolio largely consists of loans secured by residential properties with five or more units. Construction and land loans mainly provide construction financing for multifamily residential, hotels, offices, industrial and retail projects, and financing for the purchase of land. The consumer portfolio includes single-family residential loans and HELOCs originated by the Company through a variety of mortgage loan programs. A substantial number of these loans are originated through a reduced documentation loan program, in which a large down payment is required, resulting in a low loan-to-value (“LTV”) ratio at origination, typically 60% or less. The Company is in a first lien position for virtually all reduced documentation single-family residential loans and for most of the HELOCs. These loans have historically experienced low delinquency and loss rates. Other consumer loans are mainly consumer insurance premium financing. L oans held-for-investments’ accrued interest receivable was $117.6 million and $121.8 million as of March 31, 2020 and December 31, 2019, respectively. Approximately $366 thousand of interest income related to nonaccrual loans was reversed during the three months ended March 31, 2020 and there was no interest income recognized on nonaccrual loans for the three months ended March 31, 2020. For our accounting policy related to held-for-investment loans’ accrued interest receivable, see Note 2 — Summary of Significant Accounting Policies to the Consolidated Financial Statements in this Form 10-Q. As of March 31, 2020 and December 31, 2019, loans of $23.11 billion and $22.43 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 borrower’s current payment performance or delinquency, repayment sources, financial and liquidity factors, including 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 to repay the loan in full, in accordance with all terms and conditions. Loans assigned a risk rating of 6 have potential weaknesses that warrant closer attention by management; these are assigned an internal risk rating of “Special Mention”. Loans assigned a risk rating of 7 or 8 have well-defined weaknesses that may jeopardize the full and timely repayment of the loan; these are assigned an internal risk rating of “Substandard”. Loans assigned a risk rating of 9 have insufficient sources of repayment and a high probability of loss; these are assigned an internal risk rating of “Doubtful”. Loans assigned a risk rating of 10 are uncollectable and of such little value that they are no longer considered bankable assets; these are assigned an internal risk rating of “Loss”. The loans’ internal risk ratings are reviewed routinely and adjusted based on changes in the borrowers’ financial status and the loans’ collectability. These risk ratings were updated as of March 31, 2020. The following table summarizes the Company’s loans held-for-investment as of March 31, 2020, presented by loan portfolio segments, internal risk ratings and vintage year. The vintage year is the year of origination, renewal or major modification.
($ in thousands) |  | March 31, 2020
| Term Loans |  | Revolving Loans Amortized Cost Basis |  | Revolving Loans Converted to Term Loans Amortized Cost Basis |  | Total
| Amortized Cost Basis by Origination Year |  |  |
| 2020 |  | 2019 |  | 2018 |  | 2017 |  | 2016 |  | Prior |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
C&I: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 884,043 |  |  | $ | 2,320,726 |  |  | $ | 830,428 |  |  | $ | 381,798 |  |  | $ | 94,032 |  |  | $ | 411,215 |  |  | $ | 6,945,982 |  |  | $ | 10,081 |  |  | $ | 11,878,305 |
Special mention |  | 21,388 |  |  | 98,629 |  |  | 16,948 |  |  | 27,701 |  |  | 1,064 |  |  | 10,600 |  |  | 218,835 |  |  | — |  |  | 395,165 |
Substandard |  | 4,324 |  |  | 65,448 |  |  | 27,200 |  |  | 40,985 |  |  | 13,431 |  |  | 2,196 |  |  | 147,012 |  |  | — |  |  | 300,596 |
Doubtful |  | — |  |  | 15,654 |  |  | — |  |  | — |  |  | 1,044 |  |  | — |  |  | — |  |  | — |  |  | 16,698 |
Total C&I |  | 909,755 |  |  | 2,500,457 |  |  | 874,576 |  |  | 450,484 |  |  | 109,571 |  |  | 424,011 |  |  | 7,311,829 |  |  | 10,081 |  |  | 12,590,764 |
CRE: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 1,023,184 |  |  | 2,994,402 |  |  | 2,319,358 |  |  | 1,317,389 |  |  | 739,774 |  |  | 1,926,748 |  |  | 157,889 |  |  | 10,775 |  |  | 10,489,519 |
Special mention |  | 3,636 |  |  | 66,004 |  |  | 15,438 |  |  | 19,896 |  |  | 674 |  |  | 10,518 |  |  | — |  |  | — |  |  | 116,166 |
Substandard |  | 5,540 |  |  | 29,695 |  |  | 2,415 |  |  | 18,900 |  |  | 520 |  |  | 19,487 |  |  | — |  |  | — |  |  | 76,557 |
Total CRE |  | 1,032,360 |  |  | 3,090,101 |  |  | 2,337,211 |  |  | 1,356,185 |  |  | 740,968 |  |  | 1,956,753 |  |  | 157,889 |  |  | 10,775 |  |  | 10,682,242 |
Multifamily residential: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 293,032 |  |  | 1,091,261 |  |  | 489,564 |  |  | 408,783 |  |  | 212,174 |  |  | 372,554 |  |  | 5,386 |  |  | — |  |  | 2,872,754 |
Special mention |  | — |  |  | 21,164 |  |  | 1,893 |  |  | — |  |  | — |  |  | 521 |  |  | — |  |  | — |  |  | 23,578 |
Substandard |  | — |  |  | — |  |  | 285 |  |  | — |  |  | — |  |  | 5,984 |  |  | — |  |  | — |  |  | 6,269 |
Total multifamily residential |  | 293,032 |  |  | 1,112,425 |  |  | 491,742 |  |  | 408,783 |  |  | 212,174 |  |  | 379,059 |  |  | 5,386 |  |  | — |  |  | 2,902,601 |
Construction and land: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 67,143 |  |  | 316,396 |  |  | 159,847 |  |  | 15,630 |  |  | 21,048 |  |  | 1,183 |  |  | — |  |  | — |  |  | 581,247 |
Substandard |  | 1,608 |  |  | 3,662 |  |  | — |  |  | — |  |  | — |  |  | 19,692 |  |  | — |  |  | — |  |  | 24,962 |
Total construction and land |  | 68,751 |  |  | 320,058 |  |  | 159,847 |  |  | 15,630 |  |  | 21,048 |  |  | 20,875 |  |  | — |  |  | — |  |  | 606,209 |
Total CRE |  | 1,394,143 |  |  | 4,522,584 |  |  | 2,988,800 |  |  | 1,780,598 |  |  | 974,190 |  |  | 2,356,687 |  |  | 163,275 |  |  | 10,775 |  |  | 14,191,052 |
Total commercial |  | 2,303,898 |  |  | 7,023,041 |  |  | 3,863,376 |  |  | 2,231,082 |  |  | 1,083,761 |  |  | 2,780,698 |  |  | 7,475,104 |  |  | 20,856 |  |  | 26,781,816 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Single-family residential: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 612,040 |  |  | 2,043,504 |  |  | 1,775,928 |  |  | 1,218,685 |  |  | 624,427 |  |  | 1,099,351 |  |  | — |  |  | — |  |  | 7,373,935 |
Special mention |  | — |  |  | 238 |  |  | 1,639 |  |  | 1,253 |  |  | 2,811 |  |  | 6,796 |  |  | — |  |  | — |  |  | 12,737 |
Substandard |  | — |  |  | 839 |  |  | 1,733 |  |  | 3,180 |  |  | 1,158 |  |  | 10,141 |  |  | — |  |  | — |  |  | 17,051 |
Total single-family residential mortgage |  | 612,040 |  |  | 2,044,581 |  |  | 1,779,300 |  |  | 1,223,118 |  |  | 628,396 |  |  | 1,116,288 |  |  | — |  |  | — |  |  | 7,403,723 |
HELOCs: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | — |  |  | — |  |  | 3,182 |  |  | 5,980 |  |  | 6,525 |  |  | 19,809 |  |  | 1,260,844 |  |  | 142,090 |  |  | 1,438,430 |
Special mention |  | — |  |  | — |  |  | 700 |  |  | — |  |  | 165 |  |  | 1,945 |  |  | 571 |  |  | 605 |  |  | 3,986 |
Substandard |  | — |  |  | 150 |  |  | 289 |  |  | 2,611 |  |  | 1,145 |  |  | 4,789 |  |  | — |  |  | 1,462 |  |  | 10,446 |
Total HELOCs |  | — |  |  | 150 |  |  | 4,171 |  |  | 8,591 |  |  | 7,835 |  |  | 26,543 |  |  | 1,261,415 |  |  | 144,157 |  |  | 1,452,862 |
Total residential mortgage |  | 612,040 |  |  | 2,044,731 |  |  | 1,783,471 |  |  | 1,231,709 |  |  | 636,231 |  |  | 1,142,831 |  |  | 1,261,415 |  |  | 144,157 |  |  | 8,856,585 |
Other consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 3,951 |  |  | 4,440 |  |  | 2,637 |  |  | 1,885 |  |  | 18 |  |  | 198,988 |  |  | 40,556 |  |  | — |  |  | 252,475 |
Special mention |  | 11 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 11 |
Substandard |  | — |  |  | — |  |  | — |  |  | 2,491 |  |  | — |  |  | 3 |  |  | 12 |  |  | — |  |  | 2,506 |
Total other consumer |  | 3,962 |  |  | 4,440 |  |  | 2,637 |  |  | 4,376 |  |  | 18 |  |  | 198,991 |  |  | 40,568 |  |  | — |  |  | 254,992 |
Total consumer |  | 616,002 |  |  | 2,049,171 |  |  | 1,786,108 |  |  | 1,236,085 |  |  | 636,249 |  |  | 1,341,822 |  |  | 1,301,983 |  |  | 144,157 |  |  | 9,111,577 |
Total |  | $ | 2,919,900 |  |  | $ | 9,072,212 |  |  | $ | 5,649,484 |  |  | $ | 3,467,167 |  |  | $ | 1,720,010 |  |  | $ | 4,122,520 |  |  | $ | 8,777,087 |  |  | $ | 165,013 |  |  | $ | 35,893,393 |
Revolving loans that are converted to term loans presented in the table above are excluded from the term loans by vintage year columns. During the three months ended March 31, 2020, $31.3 million of HELOCs converted to term loans and there were no conversions for C&I or CRE loans. The following tables present the credit risk ratings for non-PCI and PCI loans by portfolio segments as of December 31, 2019:
($ 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, 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 |
(1) | Loans net of ASC 310-10 discount.
Nonaccrual and Past Due Loans 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. 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 table presents the aging analysis of total loans held-for-investment as of March 31, 2020:
($ in thousands) |  | March 31, 2020
| 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 Loans
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
C&I |  | $ | 15,168 |  |  | $ | 3,217 |  |  | $ | 18,385 |  |  | $ | 59,110 |  |  | $ | 29,969 |  |  | $ | 89,079 |  |  | $ | 12,483,300 |  |  | $ | 12,590,764 |
CRE: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
CRE |  | 6,050 |  |  | 936 |  |  | 6,986 |  |  | 474 |  |  | 5,824 |  |  | 6,298 |  |  | 10,668,958 |  |  | 10,682,242 |
Multifamily residential |  | 510 |  |  | 366 |  |  | 876 |  |  | 518 |  |  | 285 |  |  | 803 |  |  | 2,900,922 |  |  | 2,902,601 |
Construction and land |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 606,209 |  |  | 606,209 |
Total CRE |  | 6,560 |  |  | 1,302 |  |  | 7,862 |  |  | 992 |  |  | 6,109 |  |  | 7,101 |  |  | 14,176,089 |  |  | 14,191,052 |
Total commercial |  | 21,728 |  |  | 4,519 |  |  | 26,247 |  |  | 60,102 |  |  | 36,078 |  |  | 96,180 |  |  | 26,659,389 |  |  | 26,781,816 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Single-family residential |  | 45,926 |  |  | 12,737 |  |  | 58,663 |  |  | 1,312 |  |  | 16,224 |  |  | 17,536 |  |  | 7,327,524 |  |  | 7,403,723 |
HELOCs |  | 10,654 |  |  | 3,980 |  |  | 14,634 |  |  | 444 |  |  | 10,002 |  |  | 10,446 |  |  | 1,427,782 |  |  | 1,452,862 |
Total residential mortgage |  | 56,580 |  |  | 16,717 |  |  | 73,297 |  |  | 1,756 |  |  | 26,226 |  |  | 27,982 |  |  | 8,755,306 |  |  | 8,856,585 |
Other consumer |  | 34 |  |  | 29 |  |  | 63 |  |  | — |  |  | 2,506 |  |  | 2,506 |  |  | 252,423 |  |  | 254,992 |
Total consumer |  | 56,614 |  |  | 16,746 |  |  | 73,360 |  |  | 1,756 |  |  | 28,732 |  |  | 30,488 |  |  | 9,007,729 |  |  | 9,111,577 |
Total |  | $ | 78,342 |  |  | $ | 21,265 |  |  | $ | 99,607 |  |  | $ | 61,858 |  |  | $ | 64,810 |  |  | $ | 126,668 |  |  | $ | 35,667,118 |  |  | $ | 35,893,393 |
The following table presents amortized cost of loans on nonaccrual status for which there was no related allowance for loan losses as of March 31, 2020:
($ in thousands) |  | March 31, 2020
Commercial: |  |
C&I |  | $ | 64,431 |
CRE: |  |
CRE |  | 5,253 |
Total CRE |  | 5,253 |
Total commercial |  | 69,684 |
Consumer: |  |
Residential mortgage: |  |
Single-family residential |  | 8,718 |
HELOCs |  | 6,511 |
Total residential mortgage |  | 15,229 |
Other consumer |  | 2,491 |
Total consumer |  | 17,720 |
Total nonaccrual loans with no related allowance for loan losses |  | $ | 87,404 |
The following table presents the aging analysis of non-PCI loans as of December 31, 2019:
($ 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 |
PCI loans are excluded from the above aging analysis table as of December 31, 2019, as the Company elected to account for these loans on a pool level basis under ASC 310-30 at the time of acquisition. As of December 31, 2019, PCI loans on nonaccrual status totaled $297 thousand. Foreclosed Assets The Company had $24.3 million in foreclosed assets as of March 31, 2020 compared to $1.3 million as of December 31, 2019. The Company commences the foreclosure process on consumer mortgage loans when a borrower becomes 120 days delinquent in accordance with the Consumer Finance Protection Bureau guidelines. The carrying value of consumer real estate loans for which formal foreclosure proceedings were in process was $8.1 million and $7.2 million as of March 31, 2020 and December 31, 2019, respectively. The foreclosure proceedings for these consumer real estate loans were initiated prior to the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) passed by Congress in March 2020. In connection with our actions to support our customers during the COVID-19 pandemic, we have suspended certain mortgage foreclosure activities. Troubled Debt Restructurings 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 Company has implemented various consumer and commercial loan modification programs to provide its borrowers relief from the economic impacts of COVID-19. In accordance with the CARES Act, the Company has elected to not apply TDR classification to any COVID-19 related loan modifications. On April 7, 2020, the federal banking regulators issued the “Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus (Revised)” (the Interagency Statement). The Interagency Statement provides additional TDR relief as it clarifies that it is not necessary to consider the impact of the COVID-19 pandemic on the financial condition of a borrower in connection with a short-term (e.g., six months) COVID-19 related loan modification provided that the borrower is current at the date the modification program is implemented. For COVID-19 related loan modifications in the form of payment deferrals, the delinquency status will not advance and loans that were accruing at the time that the relief is provided will generally not be placed on nonaccrual status during the deferral period. Interest income will continue to be recognized over the contractual life of the loan. The following table presents the additions to TDRs for the three months ended March 31, 2020 and 2019:
($ in thousands) |  | Loans Modified as TDRs During the Three Months Ended March 31,
| 2020 |  | 2019
| Number of Loans |  | Pre- Modification Outstanding Recorded Investment |  | Post- Modification Outstanding Recorded Investment (1) |  | Financial Impact (2) |  | Number of Loans |  | Pre- Modification Outstanding Recorded Investment |  | Post- Modification Outstanding Recorded Investment (1) |  | Financial Impact (2)
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
C&I |  | 3 |  | $ | 16,604 |  |  | $ | 15,735 |  |  | $ | 98 |  |  | 3 |  | $ | 29,152 |  |  | $ | 29,176 |  |  | $ | 60 |
Total |  | 3 |  | $ | 16,604 |  |  | $ | 15,735 |  |  | $ | 98 |  |  | 3 |  | $ | 29,152 |  |  | $ | 29,176 |  |  | $ | 60 |
(1) | Includes subsequent payments after modification and reflects the balance as of March 31, 2020 and 2019.
(2) | The financial impact includes charge-offs and specific reserves recorded since the modification date.
The following table presents the TDR post-modification outstanding balances for the three months ended March 31, 2020 and 2019 by modification type:
($ in thousands) |  | Modification Type During the Three Months Ended March 31,
| 2020 |  | 2019
| Principal (1) |  | Principal and Interest (2) |  | Total |  | Principal (1) |  | Principal and Interest (2) |  | Total
Commercial: |  |  |  |  |  |  |  |  |  |  |  |
C&I |  | $ | 4,564 |  |  | $ | 11,171 |  |  | $ | 15,735 |  |  | $ | 29,176 |  |  | $ | — |  |  | $ | 29,176 |
Total |  | $ | 4,564 |  |  | $ | 11,171 |  |  | $ | 15,735 |  |  | $ | 29,176 |  |  | $ | — |  |  | $ | 29,176 |
(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.
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. Subsequent defaults do not generally have a significant additional impact on the allowance for loan losses. During the three months ended March 31, 2020, there were no TDRs that experienced payment defaults after modifications within the previous 12 months. The following table presents information on loans for which a subsequent payment default occurred during the three months ended March 31, 2019, which had been modified as TDR within the previous 12 months of its default, and were still in default as of March 31, 2019:
($ in thousands) |  | Loans Modified as TDRs that Subsequently Defaulted During the Three Months Ended March 31, 2019
| Number of Loans |  | Recorded Investment
Commercial: |  |  |  |
C&I |  | 3 |  |  | $ | 4,618 |
Total |  | 3 |  |  | $ | 4,618 |
The amount of additional funds committed to lend to borrowers whose terms have been modified as TDRs was $2.3 million and $2.2 million as of March 31, 2020 and December 31, 2019, respectively. Impaired Loans The following table presents information about non-PCI impaired loans as of December 31, 2019:
($ 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 |
The following table presents the average recorded investment and interest income recognized on non-PCI impaired loans for the three months ended March 31, 2019:
($ in thousands) |  | Three Months Ended March 31, 2019
| Average Recorded Investment |  | Recognized Interest Income (1)
Commercial: |  |  |  |
C&I |  | $ | 93,391 |  |  | $ | 735 |
CRE: |  |  |  |
CRE |  | 30,827 |  |  | 114 |
Multifamily residential |  | 5,721 |  |  | 61 |
Total CRE |  | 36,548 |  |  | 175 |
Total commercial |  | 129,939 |  |  | 910 |
Consumer: |  |  |  |
Residential mortgage: |  |  |  |
Single-family residential |  | 15,898 |  |  | 128 |
HELOCs |  | 10,811 |  |  | 18 |
Total residential mortgage |  | 26,709 |  |  | 146 |
Other consumer |  | 2,504 |  |  | — |
Total consumer |  | 29,213 |  |  | 146 |
Total non-PCI impaired loans |  | $ | 159,152 |  |  | $ | 1,056 |
(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.
Allowance for Credit Losses The allowance for credit losses includes the allowance for loan losses and the allowance for unfunded credit commitments. The Company’s Allowance for Credit Losses Committee reviews and approves the allowance for credit losses on a quarterly basis. Allowance for Collectively Evaluated Loans For loans collectively assessed, the Company’s methodology to determine the appropriate allowance for loan losses is based on quantitative credit models, supplemented by qualitative adjustments. The Company utilize a lifetime loss rate model for the C&I portfolio; probability of default (“PD”) and loss given default (“LGD”) models for all commercial and consumer real estate loan portfolios, and a loss rate approach for other consumer loans. Factors incorporated into the qualitative adjustments are designed to capture economic, portfolio, operational and segmentation risks not captured by the quantitative credit models. These factors include, but are not limited to, current and forecast economic or market conditions; risks stemming from borrowers’ exposure to or dependence on the U.S. consumer market; industry specific risks inherent in the Company’s loan portfolio, such as oil price fluctuations or falling oil consumption; profiles of various loan segments; portfolio concentrations by loan type, industry, and geography; loan growth trends; internal credit risk ratings; historical loss experience; current delinquency and problem loan trends, and collateral values. The evaluation is inherently subjective, as it requires numerous estimates and judgments that are susceptible to revision as more information becomes available. To the extent actual results differ from estimates or management’s judgment, the allowance for loan losses may be greater or less than future charge-offs. For the three months ended March 31, 2020, there were no changes to the reasonable and supportable forecast period, and reversion to historical loss experience method. The forecasts of macroeconomic variables were updated to include the impact of the COVID-19 pandemic, oil price declines and other assumptions. The Company uses a third-party economic forecast to estimate the expected credit losses in its quantitative credit models. The forecast uses three economic scenarios including a base forecast representing management's view of the most likely outcome and equally-probable downside and upside scenarios reflecting possible worsening and improving economic conditions, respectively. The economic outlook deteriorated towards the end of the quarter ended March 31, 2020, reflecting the effects of the ongoing COVID-19 pandemic. To reflect the sudden sharp recession caused by the COVID-19 global pandemic, U.S. monetary and fiscal responses to the outbreak, oil price declines and other assumptions, the forecast utilized to estimate expected credit losses was updated in late March 2020. Unemployment rate, which is a key macroeconomic variable for the quantitative models, is projected to significantly spike in the second quarter of 2020 and begin a slower recovery but remain at an elevated level during the second half of 2020. The allowance for credit losses at March 31, 2020 also included qualitative adjustments for certain industry sectors, such as the oil and gas loan portfolio that the Company views as higher risk, where quantitative models may not have captured the additional exposure related to such industry sectors. Allowance for Loan Losses for the Commercial Loan Portfolio — The Company’s C&I lifetime loss rate model estimates credit losses by estimating a loss rate expected over the life of a loan. This loss rate is applied to the amortized cost basis, excluding accrued interest receivables, to determine expected credit losses. This model incorporates portfolio prepayment rate and utilization rates assumptions; loan-specific risk characteristics such as internal credit risk rating, industry segment, time-to-maturity, size and credit spread at origination, and the economic and market conditions. Each of these components, along with economic forecast information through the reasonable and supportable period, are embedded in the forecasted lifetime loss rate. The lifetime loss rate model’s reasonable and supportable period spans eight quarters, thereafter immediately reverting to the historical average loss rate, expressed implicitly through the loan-level lifetime loss rate. The Company’s CRE PD/LGD models estimate the probability that a loan will default and, in the event of default, estimate the expected credit losses upon default. The product of the PD and LGD determines the Company’s current expected credit losses. In addition to the Company’s macroeconomic outlook, these models also incorporate prepayment estimates, historical loss rates, loan duration and amortization terms, interest rates, property type, and the geographic locations of the properties collateralizing the loans. The PD/LGD model assumptions and variable inputs span the entire contractual life of the loans, adjusted for expected prepayments. After a reasonable and supportable period, the forecast of future economic conditions reverts to long-run historical economic trends. The loan-specific variables apply over the lifetime of a loan. In order to estimate the life of a loan under both models, the contractual term of the loan is adjusted for estimated prepayments, which are based on historical prepayment experience. The Company’s macroeconomic outlook is a key driver in the commercial loan portfolio. The Company uses numerous key macroeconomic variables within its forecasts, including unemployment, real GDP and U.S. Treasury rates. The macroeconomic outlook also considers national and regional personal income, sales, employment and financial indicators that impact discrete commercial loan industry segments. The Company utilizes a probability-weighted three-scenario forecast approach to estimate the allowance for credit losses. To the extent that information relevant to the collectability of a loan is available and not already captured by the quantitative models, the Company utilizes qualitative factors to adjust the estimate. These factors include, but are not limited to, operational risks resulting from the quality of the Company’s internal loan ratings; portfolio risks such as higher than normal growth trends, delinquencies and levels of classified loans; industry-specific risks inherent in the Company’s portfolio, and other risks borne out of geopolitical, environmental, or natural disaster events specific to the Company’s portfolio, which are not otherwise captured by the quantitative models. Allowance for Loan Losses for the Consumer Loan Portfolio — For single-family residential and HELOC loans, PG/LGD model assumptions and variable inputs span the entire contractual life of the loans, adjusted for expected prepayments. After a reasonable and supportable period, the forecast of future economic conditions reverts to long- run historical economic trends. The loan-specific variables apply over the lifetime of a loan. In addition to the consideration of the Company’s macroeconomic outlook, the PD/LGD model also incorporates prepayment estimates, historical loss rates, and loan-specific risk characteristics such as the borrower’s FICO score, loan term, interest rates, property purpose and value, and the geographic locations of the properties collateralizing the loans. For other consumer loans, the Company uses a loss rate approach. In order to estimate the life of a loan, the contractual term of the loan is adjusted for estimated prepayments, which are based on historical prepayment experience. The Company’s macroeconomic outlook is a key driver in the residential mortgage portfolio. The Company uses several macroeconomic variables, including unemployment rate and home price index, for its residential mortgage portfolio at the national, state and Metropolitan Statistical Area level. The macroeconomic outlook takes into account national and regional personal income, employment and financial indicators impacting the residential loans industry. For other consumer loans, the Company qualitatively adjusts the expected credit loss using real GDP, unemployment, U.S. Treasury Spread and the S&P 500 index. The Company utilizes a probability-weighted three-scenario forecast approach to estimate the allowance for credit losses. Individually Assessed Loans — When a loan no longer shares similar risk characteristics with other loans, such as in the case for certain nonaccrual or TDR loans, the Company estimates the allowance for loan losses on an individual loan basis. The allowance for loan losses for individually evaluated loans is measured as the difference between the recorded value of the loans and their fair value. For loans evaluated individually, the Company uses one of three different asset valuation measurement methods: (1) the present value of expected future cash flows; (2) the fair value of collateral less costs to sell; (3) the loan's observable market price. If an individually evaluated loan is determined to be collateral dependent, the Company applies the fair value of the collateral less costs to sell method. If an individually evaluated loan is determined to not be collateral dependent, the Company uses the present value of future cash flows or the observable market value of the loan. Collateral-Dependent Loans — When a loan is collateral dependent, the allowance is measured on an individual loan basis and is limited to the difference between the recorded value and fair value of the collateral less cost of disposal or sale. As of March 31, 2020, collateral dependent commercial and consumer loans totaled $34.6 million and $17.8 million, respectively. The Company's commercial collateral-dependent loans were secured by real estate or business properties. The Company's consumer collateral dependent loans were all residential mortgage loans, secured by the underlying real estate. As of March 31, 2020, the collateral value of the properties securing each of these collateral dependent loans, net of selling costs, exceeded the amortized cost of the individual loans, except for one C&I loan, against which there was a recorded allowance of $416 thousand. For the three months ended March 31, 2020, there was no significant deterioration or changes in the collaterals securing these loans. The following table presents a summary of activities in the allowance for loan losses by portfolio segment for the three months ended March 31, 2020:
($ in thousands) |  | March 31, 2020
| Commercial |  | Consumer |  | Total
| C&I |  | CRE |  | Residential Mortgage |  | Other Consumer |
|  | CRE |  | Multi-Family Residential |  | Construction and Land |  | Single- Family Residential |  | HELOCs |  |
Allowance for loan losses, December 31, 2019 |  | $ | 238,376 |  |  | $ | 40,509 |  |  | $ | 22,826 |  |  | $ | 19,404 |  |  | $ | 28,527 |  |  | $ | 5,265 |  |  | $ | 3,380 |  |  | $ | 358,287 |
Impact of ASU 2016-13 adoption |  | 74,237 |  |  | 72,169 |  |  | (8,112 | ) |  | (9,889 | ) |  | (3,670 | ) |  | (1,798 | ) |  | 2,221 |  |  | 125,158 |
Allowance for loan losses, January 1, 2020 |  | 312,613 |  |  | 112,678 |  |  | 14,714 |  |  | 9,515 |  |  | 24,857 |  |  | 3,467 |  |  | 5,601 |  |  | 483,445 |
Provision for (reversal of ) credit losses |  | 60,618 |  |  | 11,435 |  |  | 1,281 |  |  | 1,482 |  |  | 1,700 |  |  | 412 |  |  | (2,272 | ) |  | 74,656 |
Gross charge-offs |  | (11,977 | ) |  | (954 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | (26 | ) |  | (12,957 | )
Gross recoveries |  | 1,575 |  |  | 9,660 |  |  | 535 |  |  | 21 |  |  | 265 |  |  | 2 |  |  | 1 |  |  | 12,059 |
Total net charge-offs |  | (10,402 | ) |  | 8,706 |  |  | 535 |  |  | 21 |  |  | 265 |  |  | 2 |  |  | (25 | ) |  | (898 | )
Foreign currency translation adjustments |  | (200 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (200 | )
Allowance for loan losses, March 31, 2020 |  | $ | 362,629 |  |  | $ | 132,819 |  |  | $ | 16,530 |  |  | $ | 11,018 |  |  | $ | 26,822 |  |  | $ | 3,881 |  |  | $ | 3,304 |  |  | $ | 557,003 |
The following table presents a summary of activities in the allowance for unfunded credit commitments for the three months ended March 31, 2020:
($ in thousands) |  | Three Months Ended March 31, 2020
Unfunded credit facilities |  |
Allowance for unfunded credit commitments, December 31, 2019 |  | $ | 11,158 |
Impact of ASU 2016-13 adoption |  | 10,457 |
Allowance for unfunded credit commitments, January 1, 2020 |  | 21,615 |
Reversal of credit losses |  | (786 | )
Allowance for unfunded credit commitments, March 31, 2020 |  | $ | 20,829 |
Total provision for credit losses |  | $ | 73,870 |
The following table presents a summary of activities in the allowance for loan losses by portfolio segments and the allowance for unfunded credit commitments for the three months ended March 31, 2019:
($ in thousands) |  | Three Months Ended March 31, 2019
Allowance for non-PCI loans, beginning of period |  | $ | 311,300 |
Provision for loan losses on non-PCI loans | (a) | 20,648 |
Gross charge-offs: |  |
Commercial: |  |
C&I |  | (17,244 | )
Consumer: |  |
Other consumer |  | (14 | )
Total gross charge-offs |  | (17,258 | )
Gross recoveries: |  |
Commercial: |  |
C&I |  | 2,251 |
CRE: |  |
CRE |  | 222 |
Multifamily residential |  | 281 |
Construction and land |  | 63 |
Total CRE |  | 566 |
Consumer: |  |
Residential mortgage: |  |
Single-family residential |  | 2 |
HELOCs |  | 2 |
Total residential mortgage |  | 4 |
Total gross recoveries |  | 2,821 |
Net charge-offs |  | (14,437 | )
Foreign currency translation adjustments |  | 369 |
Allowance for non-PCI loans, end of period |  | 317,880 |
PCI Loans |  |
Allowance for PCI loans, beginning of period |  | 22 |
Reversal of loan losses on PCI loans | (b) | (8 | )
Allowance for PCI loans, end of period |  | 14 |
Allowance for loan losses |  | $ | 317,894 |
Unfunded credit facilities |  |
Allowance for unfunded credit commitments, beginning of period |  | $ | 12,566 |
Provision for unfunded credit commitments | (c) | 1,939 |
Allowance for unfunded credit commitments, ending of period |  | $ | 14,505 |
Total provision for credit losses | (a)+(b)+(c) | $ | 22,579 |
As of March 31, 2020, the allowance for loan losses amounted to $557.0 million or 1.55% of loans held-for-investment, compared with $358.3 million or 1.03% of loans held-for-investment as of December 31, 2019, and $317.9 million or 0.97% of loans held-for-investment as of March 31, 2019. The quarter-over-quarter and year-over-year increase in allowance for loan losses was largely due to the adoption of ASU 2016-13, which increased the allowance for loan losses by $125.2 million; deteriorating macroeconomic conditions and outlook as a result of the COVID-19 pandemic, which drove a $73.9 million provision for credit losses for the three months ended March 31, 2020 and loan growth. First quarter 2020 gross charge-offs of $13.0 million were primarily from C&I loans, and were almost entirely offset by recoveries, primarily from CRE loans, resulting in net charge-offs of $898 thousand or annualized 0.01% of average loans held-for-investment. The C&I gross charge-offs for the three months ended March 31, 2020 totaled $12.0 million and were primarily from the oil and gas loan portfolio. The allowance for unfunded credit commitments is maintained at a level, that management believes to be sufficient to absorb estimated expected credit losses related to unfunded credit facilities. See Note 10 — Commitments and Contingencies to the Consolidated Financial Statements in this Form 10-Q for additional information related to unfunded credit commitments. The following table presents the Company’s allowance for loan losses and recorded investments by loan type and impairment methodology as of December 31, 2019:
($ in thousands) |  | December 31, 2019
| Commercial |  | Consumer |  | Total
| C&I |  | CRE |  | Residential Mortgage |  | Other Consumer |
|  | CRE |  | Multifamily Residential |  | Construction and Land |  | Single- Family Residential |  | HELOCs |  |
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 |
(1) | Loans net of ASC 310-10 discount.
Purchased Credit-Deteriorated Loans On January 1, 2020, the amortized cost basis of the PCD loans was adjusted to reflect the $1.2 million of allowance for loan losses. For the three months ended March 31, 2020, the Company did not acquire any PCD loans. For information on PCD loans, see Note 2 — Summary of Significant Accounting Policies to the Consolidated Financial Statements in this Form 10-Q. The following table presents the changes in accretable yield on PCI loans for the three months ended March 31, 2019:
($ in thousands) |  | Three Months Ended March 31, 2019
Accretable yield for PCI loans, beginning of period |  | $ | 74,870 |
Accretion |  | (6,201 | )
Changes in expected cash flows |  | 192 |
Accretable yield for PCI loans, end of period |  | $ | 68,861 |
Loans Held-for-Sale As of March 31, 2020 and December 31, 2019, loans held-for-sale of $1.6 million and $434 thousand, respectively, consisted of single-family residential loans. Refer to Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Loans Held-for-Sale to the Consolidated Financial Statements of the Company’s 2019 Form 10-K for additional details related to the Company’s loans held-for-sale. Loan Purchases, Transfers and Sales The Company purchases and sells loans in the secondary market in the ordinary course of business. From time to time, purchased loans may be transferred from held-for-investment to held-for-sale, and write-downs to allowance for loan losses are recorded, when appropriate. The following tables provide information about the carrying value of loans purchased for the held-for-investment portfolio, loans sold and loans transferred from held-for-investment to held-for-sale at lower of cost or fair value during the three months ended March 31, 2020 and 2019:
($ in thousands) |  | Three Months Ended March 31, 2020
| Commercial |  | Consumer |  | Total
| C&I |  | CRE |  | Residential Mortgage |
|  | CRE |  | Multifamily Residential |  | Single-Family Residential |
Loans transferred from held-for-investment to held-for-sale (1) |  | $ | 102,973 |  |  | $ | 7,250 |  |  | $ | — |  |  | $ | — |  |  | $ | 110,223 |
Sales (2)(3)(4) |  | $ | 102,973 |  |  | $ | 7,250 |  |  | $ | — |  |  | $ | 4,642 |  |  | $ | 114,865 |
Purchases (5) |  | $ | 130,583 |  |  | $ | — |  |  | $ | 1,513 |  |  | $ | 1,084 |  |  | $ | 133,180 |
($ in thousands) |  | Three Months Ended March 31, 2019
| Commercial |  | Consumer |  | Total
| C&I |  | CRE |  | Residential Mortgage |
|  | CRE |  | Multifamily Residential |  | Single-Family Residential |
Loans transferred from held-for-investment to held-for-sale (1) |  | $ | 75,573 |  |  | $ | 16,655 |  |  | $ | — |  |  | $ | — |  |  | $ | 92,228 |
Sales (2)(3)(4) |  | $ | 75,646 |  |  | $ | 16,655 |  |  | $ | — |  |  | $ | 2,442 |  |  | $ | 94,743 |
Purchases (5) |  | $ | 107,194 |  |  | $ | — |  |  | $ | 4,218 |  |  | $ | 36,402 |  |  | $ | 147,814 |
(1) | The Company recorded no write-downs to the allowance for loan losses related to loans transferred from held-for-investment to held-for-sale for the three months ended March 31, 2020 and $73 thousand for the same period in 2019.
(2) | Includes originated loans sold of $114.9 million and $76.5 million for the three months ended March 31, 2020 and 2019, respectively. Originated loans sold during each of the three months ended March 31, 2020 and 2019 were primarily C&I loans.
(3) | Includes none and $18.2 million of purchased loans sold in the secondary market for the three months ended March 31, 2020 and 2019, respectively.
(4) | Net gains on sales of loans were $950 thousand and $915 thousand for the three months ended March 31, 2020 and 2019, respectively.
(5) C&I loan purchases for each of the three months ended March 31, 2020 and 2019 were comprised primarily of 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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