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Loans Receivable and Allowance for Credit Losses | 9 Months Ended
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Sep. 30, 2020
Loans and Leases Receivable Disclosure [Abstract] |
Loans Receivable and Allowance for Credit Losses | Loans Receivable and Allowance for Credit Losses The following table presents the composition of the Company’s loans held-for-investment as of September 30, 2020 and December 31, 2019:
($ in thousands) |  | September 30, 2020 |  | December 31, 2019
| Amortized Cost (1) |  | Non-PCI Loans (1) |  | PCI Loans |  | Total (1)
Commercial: |  |  |  |  |  |  |  |
C&I (2) |  | $ | 13,305,024 |  |  | $ | 12,149,121 |  |  | $ | 1,810 |  |  | $ | 12,150,931 |
CRE: |  |  |  |  |  |  |  |
CRE |  | 11,037,987 |  |  | 10,165,247 |  |  | 113,201 |  |  | 10,278,448 |
Multifamily residential |  | 3,057,274 |  |  | 2,834,212 |  |  | 22,162 |  |  | 2,856,374 |
Construction and land |  | 578,407 |  |  | 628,459 |  |  | 40 |  |  | 628,499 |
Total CRE |  | 14,673,668 |  |  | 13,627,918 |  |  | 135,403 |  |  | 13,763,321 |
Total commercial |  | 27,978,692 |  |  | 25,777,039 |  |  | 137,213 |  |  | 25,914,252 |
Consumer: |  |  |  |  |  |  |  |
Residential mortgage: |  |  |  |  |  |  |  |
Single-family residential |  | 7,785,759 |  |  | 7,028,979 |  |  | 79,611 |  |  | 7,108,590 |
HELOCs |  | 1,514,388 |  |  | 1,466,736 |  |  | 6,047 |  |  | 1,472,783 |
Total residential mortgage |  | 9,300,147 |  |  | 8,495,715 |  |  | 85,658 |  |  | 8,581,373 |
Other consumer |  | 158,290 |  |  | 282,914 |  |  | — |  |  | 282,914 |
Total consumer |  | 9,458,437 |  |  | 8,778,629 |  |  | 85,658 |  |  | 8,864,287 |
Total loans held-for-investment |  | $ | 37,437,129 |  |  | $ | 34,555,668 |  |  | $ | 222,871 |  |  | $ | 34,778,539 |
Allowance for loan losses |  | (618,252) |  |  | (358,287) |  |  | — |  |  | (358,287) |
Loans held-for-investment, net |  | $ | 36,818,877 |  |  | $ | 34,197,381 |  |  | $ | 222,871 |  |  | $ | 34,420,252 |
(1)Includes net deferred loan fees, unearned fees, unamortized premiums and unaccreted discounts of $(67.0) million and $(43.2) million as of September 30, 2020 and December 31, 2019, respectively. (2)Includes PPP loans of $1.77 billion as of September 30, 2020. L oans held-for-investments’ accrued interest receivable was $108.1 million and $121.8 million as of September 30, 2020 and December 31, 2019, respectively. Reversal of interest income related to nonaccrual loans was approximately $1.2 million and $2.6 million during the three and nine months ended September 30, 2020, respectively. Interest income recognized on nonaccrual loans was approximately $18 thousand and $29 thousand for the three and nine months ended September 30, 2020, respectively. For the accounting policy on accrued interest receivable related to loans held-for-investment, see Note 2 — Current Accounting Developments and Summary of Significant Accounting Policies to the Consolidated Financial Statements in this Form 10-Q. Loans totaling $27.06 billion and $22.43 billion as of September 30, 2020 and December 31, 2019, 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 and its agencies. 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 Company reviews the internal risk ratings of its loan portfolio on a regular and ongoing basis, and adjusts the ratings based on changes in the borrowers’ financial status and the collectability of the loans. The following table summarizes the Company’s loans held-for-investment as of September 30, 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) |  | September 30, 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 |  | $ | 3,445,214 |  |  | $ | 1,746,325 |  |  | $ | 674,022 |  |  | $ | 361,648 |  |  | $ | 72,914 |  |  | $ | 140,094 |  |  | $ | 5,954,875 |  |  | $ | 9,735 |  |  | $ | 12,404,827 |
Special mention |  | 5,466 |  |  | 55,742 |  |  | 103,052 |  |  | 11,576 |  |  | 129 |  |  | 2,085 |  |  | 234,394 |  |  | — |  |  | 412,444 |
Substandard |  | 42,386 |  |  | 95,152 |  |  | 30,772 |  |  | 24,972 |  |  | 6,254 |  |  | 6,004 |  |  | 281,302 |  |  | — |  |  | 486,842 |
Doubtful |  | 6 |  |  | — |  |  | — |  |  | — |  |  | 905 |  |  | — |  |  | — |  |  | — |  |  | 911 |
Total C&I |  | 3,493,072 |  |  | 1,897,219 |  |  | 807,846 |  |  | 398,196 |  |  | 80,202 |  |  | 148,183 |  |  | 6,470,571 |  |  | 9,735 |  |  | 13,305,024 |
CRE: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 1,774,436 |  |  | 2,718,564 |  |  | 2,268,952 |  |  | 1,260,364 |  |  | 784,464 |  |  | 1,559,165 |  |  | 188,182 |  |  | 19,065 |  |  | 10,573,192 |
Special mention |  | 3,593 |  |  | 51,598 |  |  | 56,943 |  |  | 84,362 |  |  | 1,600 |  |  | 81,431 |  |  | — |  |  | — |  |  | 279,527 |
Substandard |  | 25,431 |  |  | 58,561 |  |  | 14,289 |  |  | 43,895 |  |  | 509 |  |  | 42,583 |  |  | — |  |  | — |  |  | 185,268 |
Total CRE |  | 1,803,460 |  |  | 2,828,723 |  |  | 2,340,184 |  |  | 1,388,621 |  |  | 786,573 |  |  | 1,683,179 |  |  | 188,182 |  |  | 19,065 |  |  | 11,037,987 |
Multifamily residential: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 692,581 |  |  | 956,657 |  |  | 493,769 |  |  | 386,329 |  |  | 146,346 |  |  | 318,675 |  |  | 5,342 |  |  | — |  |  | 2,999,699 |
Special mention |  | — |  |  | — |  |  | — |  |  | — |  |  | 24,602 |  |  | 986 |  |  | — |  |  | — |  |  | 25,588 |
Substandard |  | — |  |  | 739 |  |  | 23,807 |  |  | — |  |  | — |  |  | 7,441 |  |  | — |  |  | — |  |  | 31,987 |
Total multifamily residential |  | 692,581 |  |  | 957,396 |  |  | 517,576 |  |  | 386,329 |  |  | 170,948 |  |  | 327,102 |  |  | 5,342 |  |  | — |  |  | 3,057,274 |
Construction and land: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 118,823 |  |  | 253,079 |  |  | 155,371 |  |  | 5,248 |  |  | 21,371 |  |  | 1,158 |  |  | — |  |  | — |  |  | 555,050 |
Substandard |  | 3,565 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 19,792 |  |  | — |  |  | — |  |  | 23,357 |
Total construction and land |  | 122,388 |  |  | 253,079 |  |  | 155,371 |  |  | 5,248 |  |  | 21,371 |  |  | 20,950 |  |  | — |  |  | — |  |  | 578,407 |
Total CRE |  | 2,618,429 |  |  | 4,039,198 |  |  | 3,013,131 |  |  | 1,780,198 |  |  | 978,892 |  |  | 2,031,231 |  |  | 193,524 |  |  | 19,065 |  |  | 14,673,668 |
Total commercial |  | 6,111,501 |  |  | 5,936,417 |  |  | 3,820,977 |  |  | 2,178,394 |  |  | 1,059,094 |  |  | 2,179,414 |  |  | 6,664,095 |  |  | 28,800 |  |  | 27,978,692 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Single-family residential: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 1,619,709 |  |  | 1,916,265 |  |  | 1,603,227 |  |  | 1,086,999 |  |  | 561,422 |  |  | 978,167 |  |  | — |  |  | — |  |  | 7,765,789 |
Special mention |  | — |  |  | 227 |  |  | 347 |  |  | 351 |  |  | 324 |  |  | 3,474 |  |  | — |  |  | — |  |  | 4,723 |
Substandard |  | — |  |  | — |  |  | 1,474 |  |  | 2,159 |  |  | 858 |  |  | 10,756 |  |  | — |  |  | — |  |  | 15,247 |
Total single-family residential mortgage |  | 1,619,709 |  |  | 1,916,492 |  |  | 1,605,048 |  |  | 1,089,509 |  |  | 562,604 |  |  | 992,397 |  |  | — |  |  | — |  |  | 7,785,759 |
HELOCs: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 7 |  |  | 454 |  |  | 2,823 |  |  | 5,993 |  |  | 4,666 |  |  | 18,891 |  |  | 1,260,001 |  |  | 208,520 |  |  | 1,501,355 |
Special mention |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3 |  |  | 637 |  |  | 640 |
Substandard |  | — |  |  | — |  |  | 488 |  |  | 4,625 |  |  | 1,266 |  |  | 2,785 |  |  | — |  |  | 3,229 |  |  | 12,393 |
Total HELOCs |  | 7 |  |  | 454 |  |  | 3,311 |  |  | 10,618 |  |  | 5,932 |  |  | 21,676 |  |  | 1,260,004 |  |  | 212,386 |  |  | 1,514,388 |
Total residential mortgage |  | 1,619,716 |  |  | 1,916,946 |  |  | 1,608,359 |  |  | 1,100,127 |  |  | 568,536 |  |  | 1,014,073 |  |  | 1,260,004 |  |  | 212,386 |  |  | 9,300,147 |
Other consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 18,282 |  |  | 3,625 |  |  | 34 |  |  | 1,838 |  |  | — |  |  | 84,179 |  |  | 47,837 |  |  | — |  |  | 155,795 |
Substandard |  | — |  |  | — |  |  | — |  |  | 2,491 |  |  | — |  |  | — |  |  | 4 |  |  | — |  |  | 2,495 |
Total other consumer |  | 18,282 |  |  | 3,625 |  |  | 34 |  |  | 4,329 |  |  | — |  |  | 84,179 |  |  | 47,841 |  |  | — |  |  | 158,290 |
Total consumer |  | 1,637,998 |  |  | 1,920,571 |  |  | 1,608,393 |  |  | 1,104,456 |  |  | 568,536 |  |  | 1,098,252 |  |  | 1,307,845 |  |  | 212,386 |  |  | 9,458,437 |
Total |  | $ | 7,749,499 |  |  | $ | 7,856,988 |  |  | $ | 5,429,370 |  |  | $ | 3,282,850 |  |  | $ | 1,627,630 |  |  | $ | 3,277,666 |  |  | $ | 7,971,940 |  |  | $ | 241,186 |  |  | $ | 37,437,129 |
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 and nine months ended September 30, 2020, HELOCs totaling $59.8 million and $118.2 million, respectively, were converted to term loans. One C&I revolving loan of $250 thousand was converted to a term loan during the three and nine months ended September 30, 2020 and there were no conversions of CRE revolving loans to term loans during the three and nine months ended September 30, 2020. The following tables present the credit risk ratings for non-PCI and PCI loans by portfolio segments as of December 31, 2019:
($ 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 September 30, 2020:
($ in thousands) |  | September 30, 2020 |  |  |  |
| Current Accruing Loans |  | 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 |  | Total Loans |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
C&I |  | $ | 13,105,895 |  |  | $ | 6,024 |  |  | $ | 47,119 |  |  |  |  |  |  | $ | 53,143 |  |  | $ | 110,068 |  |  | $ | 35,918 |  |  | $ | 145,986 |  |  | $ | 13,305,024 |  |  |  |  |
CRE: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
CRE |  | 10,973,345 |  |  | 8,646 |  |  | — |  |  |  |  |  |  | 8,646 |  |  | 1,338 |  |  | 54,658 |  |  | 55,996 |  |  | 11,037,987 |  |  |  |  |
Multifamily residential |  | 3,049,683 |  |  | 3,504 |  |  | 359 |  |  |  |  |  |  | 3,863 |  |  | 2,404 |  |  | 1,324 |  |  | 3,728 |  |  | 3,057,274 |  |  |  |  |
Construction and land |  | 578,407 |  |  | — |  |  | — |  |  |  |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 578,407 |  |  |  |  |
Total CRE |  | 14,601,435 |  |  | 12,150 |  |  | 359 |  |  |  |  |  |  | 12,509 |  |  | 3,742 |  |  | 55,982 |  |  | 59,724 |  |  | 14,673,668 |  |  |  |  |
Total commercial |  | 27,707,330 |  |  | 18,174 |  |  | 47,478 |  |  |  |  |  |  | 65,652 |  |  | 113,810 |  |  | 91,900 |  |  | 205,710 |  |  | 27,978,692 |  |  |  |  |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Single-family residential |  | 7,755,878 |  |  | 9,076 |  |  | 4,911 |  |  |  |  |  |  | 13,987 |  |  | 1,149 |  |  | 14,745 |  |  | 15,894 |  |  | 7,785,759 |  |  |  |  |
HELOCs |  | 1,497,315 |  |  | 4,038 |  |  | 640 |  |  |  |  |  |  | 4,678 |  |  | 580 |  |  | 11,815 |  |  | 12,395 |  |  | 1,514,388 |  |  |  |  |
Total residential mortgage |  | 9,253,193 |  |  | 13,114 |  |  | 5,551 |  |  |  |  |  |  | 18,665 |  |  | 1,729 |  |  | 26,560 |  |  | 28,289 |  |  | 9,300,147 |  |  |  |  |
Other consumer |  | 155,120 |  |  | 672 |  |  | 3 |  |  |  |  |  |  | 675 |  |  | — |  |  | 2,495 |  |  | 2,495 |  |  | 158,290 |  |  |  |  |
Total consumer |  | 9,408,313 |  |  | 13,786 |  |  | 5,554 |  |  |  |  |  |  | 19,340 |  |  | 1,729 |  |  | 29,055 |  |  | 30,784 |  |  | 9,458,437 |  |  |  |  |
Total |  | $ | 37,115,643 |  |  | $ | 31,960 |  |  | $ | 53,032 |  |  |  |  |  |  | $ | 84,992 |  |  | $ | 115,539 |  |  | $ | 120,955 |  |  | $ | 236,494 |  |  | $ | 37,437,129 |  |  |  |  |
The following table presents amortized cost of loans on nonaccrual status for which there was no related allowance for loan losses as of September 30, 2020:
($ in thousands) |  | September 30, 2020
Commercial: |  |
C&I |  | $ | 95,475 |
CRE: |  |
CRE |  | 54,659 |
Multifamily residential |  | 2,550 |
Total CRE |  | 57,209 |
Total commercial |  | 152,684 |
Consumer: |  |
Residential mortgage: |  |
Single-family residential |  | 6,014 |
HELOCs |  | 8,339 |
Total residential mortgage |  | 14,353 |
Other consumer |  | 2,491 |
Total consumer |  | 16,844 |
Total nonaccrual loans with no related allowance for loan losses |  | $ | 169,528 |
The following table presents the aging analysis of non-PCI loans as of December 31, 2019:
($ in thousands) |  | December 31, 2019
| Current Accruing Loans |  | 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 |  | Total Non-PCI Loans
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
C&I |  | $ | 12,026,131 |  |  | $ | 31,121 |  |  | $ | 17,034 |  |  |  |  | $ | 48,155 |  |  | $ | 31,084 |  |  | $ | 43,751 |  |  | $ | 74,835 |  |  | $ | 12,149,121 |
CRE: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
CRE |  | 10,123,999 |  |  | 22,830 |  |  | 1,977 |  |  |  |  | 24,807 |  |  | 540 |  |  | 15,901 |  |  | 16,441 |  |  | 10,165,247 |
Multifamily residential |  | 2,832,664 |  |  | 198 |  |  | 531 |  |  |  |  | 729 |  |  | 534 |  |  | 285 |  |  | 819 |  |  | 2,834,212 |
Construction and land |  | 628,459 |  |  | — |  |  | — |  |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 628,459 |
Total CRE |  | 13,585,122 |  |  | 23,028 |  |  | 2,508 |  |  |  |  | 25,536 |  |  | 1,074 |  |  | 16,186 |  |  | 17,260 |  |  | 13,627,918 |
Total commercial |  | 25,611,253 |  |  | 54,149 |  |  | 19,542 |  |  |  |  | 73,691 |  |  | 32,158 |  |  | 59,937 |  |  | 92,095 |  |  | 25,777,039 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Single-family residential |  | 6,993,597 |  |  | 15,443 |  |  | 5,074 |  |  |  |  | 20,517 |  |  | 1,964 |  |  | 12,901 |  |  | 14,865 |  |  | 7,028,979 |
HELOCs |  | 1,448,930 |  |  | 4,273 |  |  | 2,791 |  |  |  |  | 7,064 |  |  | 1,448 |  |  | 9,294 |  |  | 10,742 |  |  | 1,466,736 |
Total residential mortgage |  | 8,442,527 |  |  | 19,716 |  |  | 7,865 |  |  |  |  | 27,581 |  |  | 3,412 |  |  | 22,195 |  |  | 25,607 |  |  | 8,495,715 |
Other consumer |  | 280,386 |  |  | 6 |  |  | 5 |  |  |  |  | 11 |  |  | — |  |  | 2,517 |  |  | 2,517 |  |  | 282,914 |
Total consumer |  | 8,722,913 |  |  | 19,722 |  |  | 7,870 |  |  |  |  | 27,592 |  |  | 3,412 |  |  | 24,712 |  |  | 28,124 |  |  | 8,778,629 |
Total |  | $ | 34,334,166 |  |  | $ | 73,871 |  |  | $ | 27,412 |  |  |  |  | $ | 101,283 |  |  | $ | 35,570 |  |  | $ | 84,649 |  |  | $ | 120,219 |  |  | $ | 34,555,668 |
PCI loans were 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 Foreclosed assets, consisting of OREO and other nonperforming assets, are included in Other assets on the Consolidated Balance Sheet. The Company had $23.4 million in foreclosed assets as of September 30, 2020 compared with $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 values of consumer real estate loans that were in the process of active or suspended foreclosure were $3.5 million and $7.2 million as of September 30, 2020 and December 31, 2019, respectively. The Company has suspended certain mortgage foreclosure activities in connection with our actions to support our customers during the COVID-19 pandemic. Troubled Debt Restructurings TDRs are individually evaluated, and the type of restructuring is selected based on the loan type and the circumstances of the borrower’s financial difficulty. A TDR is a modification of the terms of a loan when the Company, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower that it would not have otherwise considered. The Company has implemented various commercial and consumer loan modification programs to provide its borrowers relief from the economic impacts of the COVID-19 pandemic that are not considered TDRs. For additional details related to the COVID-19 pandemic, see Note 2 — Current Accounting Developments and Summary of Significant Accounting Policies — Summary of Significant Accounting Policies — Troubled Debt Restructurings to the Consolidated Financial Statements. The following tables present the additions to TDRs for the three and nine months ended September 30, 2020 and 2019:
($ in thousands) |  | Loans Modified as TDRs During the Three Months Ended September 30,
| 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 |  | 6 |  | $ | 43,378 |  |  | $ | 35,568 |  |  | $ | 12,108 |  |  | 1 |  | $ | 7,933 |  |  | $ | 6,000 |  |  | $ | 2,396 |
CRE: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
CRE |  | 2 |  | 21,429 |  |  | 21,242 |  |  | 21 |  |  | — |  | — |  |  | — |  |  | — |
Multifamily residential |  | 1 |  | 1,220 |  |  | 1,226 |  |  | — |  |  | — |  | — |  |  | — |  |  | — |
Total CRE |  | 3 |  | 22,649 |  |  | 22,468 |  |  | 21 |  |  | — |  | — |  |  | — |  |  | — |
Total commercial |  | 9 |  | 66,027 |  |  | 58,036 |  |  | 12,129 |  |  | 1 |  | 7,933 |  |  | 6,000 |  |  | 2,396 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Single-family residential |  | — |  | — |  |  | — |  |  | — |  |  | 1 |  | 903 |  |  | 893 |  |  | — |
HELOCs |  | — |  | — |  |  | — |  |  | — |  |  | 1 |  | 139 |  |  | 136 |  |  | — |
Total residential mortgage |  | — |  | — |  |  | — |  |  | — |  |  | 2 |  | 1,042 |  |  | 1,029 |  |  | — |
Total consumer |  | — |  | — |  |  | — |  |  | — |  |  | 2 |  | 1,042 |  |  | 1,029 |  |  | — |
Total |  | 9 |  | $ | 66,027 |  |  | $ | 58,036 |  |  | $ | 12,129 |  |  | 3 |  | $ | 8,975 |  |  | $ | 7,029 |  |  | $ | 2,396 |
($ in thousands) |  | Loans Modified as TDRs During the Nine Months Ended September 30,
| 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 |  | 11 |  | $ | 93,235 |  |  | $ | 79,713 |  |  | $ | 12,507 |  |  | 9 |  | $ | 85,073 |  |  | $ | 81,038 |  |  | $ | 9,231 |
CRE: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
CRE |  | 2 |  | 21,429 |  |  | 21,242 |  |  | 21 |  |  | — |  | — |  |  | — |  |  | — |
Multifamily residential |  | 1 |  | 1,220 |  |  | 1,226 |  |  | — |  |  | — |  | — |  |  | — |  |  | — |
Total CRE |  | 3 |  | 22,649 |  |  | 22,468 |  |  | 21 |  |  | — |  | — |  |  | — |  |  | — |
Total commercial |  | 14 |  | 115,884 |  |  | 102,181 |  |  | 12,528 |  |  | 9 |  | 85,073 |  |  | 81,038 |  |  | 9,231 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Single-family residential |  | — |  | — |  |  | — |  |  | — |  |  | 2 |  | 1,123 |  |  | 1,109 |  |  | 2 |
HELOCs |  | — |  | — |  |  | — |  |  | — |  |  | 1 |  | 139 |  |  | 136 |  |  | — |
Total residential mortgage |  | — |  | — |  |  | — |  |  | — |  |  | 3 |  | 1,262 |  |  | 1,245 |  |  | 2 |
Total consumer |  | — |  | — |  |  | — |  |  | — |  |  | 3 |  | 1,262 |  |  | 1,245 |  |  | 2 |
Total |  | 14 |  | $ | 115,884 |  |  | $ | 102,181 |  |  | $ | 12,528 |  |  | 12 |  | $ | 86,335 |  |  | $ | 82,283 |  |  | $ | 9,233 |
(1)Includes subsequent payments after modification and reflects the balance as of September 30, 2020 and 2019. (2)Includes charge-offs and specific reserves recorded since the modification date. The following tables present the TDR post-modification outstanding balances for the three and nine months ended September 30, 2020 and 2019 by modification type:
($ in thousands) |  | Modification Type During the Three Months Ended September 30,
| 2020 |  | 2019
| Principal (1) |  | Principal and Interest |  | Interest Deferments |  |  |  | Total |  | Principal (1) |  | Interest Deferments |  | Other |  |  |  |  |  | Total
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
C&I |  | $ | 19,025 |  |  | $ | — |  |  | $ | 16,543 |  |  |  |  | $ | 35,568 |  |  | $ | 6,000 |  |  | $ | — |  |  | $ | — |  |  |  |  |  |  | $ | 6,000 |
CRE: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
CRE |  | 21,242 |  |  | — |  |  | — |  |  |  |  | 21,242 |  |  | — |  |  | — |  |  | — |  |  |  |  |  |  | — |
Multifamily residential |  | 1,226 |  |  | — |  |  | — |  |  |  |  | 1,226 |  |  | — |  |  | — |  |  | — |  |  |  |  |  |  | — |
Total CRE |  | 22,468 |  |  | — |  |  | — |  |  |  |  | 22,468 |  |  | — |  |  | — |  |  | — |  |  |  |  |  |  | — |
Total commercial |  | 41,493 |  |  | — |  |  | 16,543 |  |  |  |  | 58,036 |  |  | 6,000 |  |  | — |  |  | — |  |  |  |  |  |  | 6,000 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Single-family residential |  | — |  |  | — |  |  | — |  |  |  |  | — |  |  | — |  |  | 893 |  |  | — |  |  |  |  |  |  | 893 |
HELOCs |  | — |  |  | — |  |  | — |  |  |  |  | — |  |  | — |  |  | — |  |  | 136 |  |  |  |  |  |  | 136 |
Total residential mortgage |  | — |  |  | — |  |  | — |  |  |  |  | — |  |  | — |  |  | 893 |  |  | 136 |  |  |  |  |  |  | 1,029 |
Total consumer |  | — |  |  | — |  |  | — |  |  |  |  | — |  |  | — |  |  | 893 |  |  | 136 |  |  |  |  |  |  | 1,029 |
Total |  | $ | 41,493 |  |  | $ | — |  |  | $ | 16,543 |  |  |  |  | $ | 58,036 |  |  | $ | 6,000 |  |  | $ | 893 |  |  | $ | 136 |  |  |  |  |  |  | $ | 7,029 |
($ in thousands) |  | Modification Type During the Nine Months Ended September 30,
| 2020 |  | 2019
| Principal (1) |  | Principal and Interest (2) |  | Interest Deferments |  | Total |  | Principal (1) |  | Interest Deferments |  | Other (3) |  | Total
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
C&I |  | $ | 36,043 |  |  | $ | 10,819 |  |  | $ | 32,851 |  |  | $ | 79,713 |  |  | $ | 44,271 |  |  | $ | — |  |  | $ | 36,767 |  |  | $ | 81,038 |
CRE: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
CRE |  | 21,242 |  |  | — |  |  | — |  |  | 21,242 |  |  | — |  |  | — |  |  | — |  |  | — |
Multifamily residential |  | 1,226 |  |  | — |  |  | — |  |  | 1,226 |  |  | — |  |  | — |  |  | — |  |  | — |
Total CRE |  | 22,468 |  |  | — |  |  | — |  |  | 22,468 |  |  | — |  |  | — |  |  | — |  |  | — |
Total commercial |  | 58,511 |  |  | 10,819 |  |  | 32,851 |  |  | 102,181 |  |  | 44,271 |  |  | — |  |  | 36,767 |  |  | 81,038 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Single-family residential |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,109 |  |  | — |  |  | 1,109 |
HELOCs |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 136 |  |  | 136 |
Total residential mortgage |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,109 |  |  | 136 |  |  | 1,245 |
Total consumer |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,109 |  |  | 136 |  |  | 1,245 |
Total |  | $ | 58,511 |  |  | $ | 10,819 |  |  | $ | 32,851 |  |  | $ | 102,181 |  |  | $ | 44,271 |  |  | $ | 1,109 |  |  | $ | 36,903 |  |  | $ | 82,283 |
(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 funding to secure additional collateral and provides liquidity to collateral-dependent C&I loans. A TDR may become delinquent and result in payment default (generally 90 days past due) subsequent to restructuring. The following tables present information on loans for which a subsequent payment default occurred during the three and nine months ended September 30, 2020 and 2019, respectively, which had been modified as TDR within the previous 12 months of its default, and were still in default as of September 30, 2020 and 2019:
($ in thousands) |  | Loans Modified as TDRs that Subsequently Defaulted During the Three Months Ended September 30,
| 2020 |  | 2019
| Number of Loans |  | Recorded Investment |  | Number of Loans |  | Recorded Investment
Commercial: |  |  |  |  |  |  |  |
C&I |  | — |  |  | $ | — |  |  | 4 |  |  | $ | 27,040 |
Total commercial |  | — |  |  | — |  |  | 4 |  |  | 27,040 |
Total |  | — |  |  | $ | — |  |  | 4 |  |  | $ | 27,040 |
($ in thousands) |  | Loans Modified as TDRs that Subsequently Defaulted During the Nine Months Ended September 30,
| 2020 |  | 2019
| Number of Loans |  | Recorded Investment |  | Number of Loans |  | Recorded Investment
Commercial: |  |  |  |  |  |  |  |
C&I |  | 1 |  |  | $ | 16,309 |  |  | 5 |  |  | $ | 28,415 |
Total commercial |  | 1 |  |  | 16,309 |  |  | 5 |  |  | 28,415 |
Total |  | 1 |  |  | $ | 16,309 |  |  | 5 |  |  | $ | 28,415 |
The amount of additional funds committed to lend to borrowers whose terms have been modified as TDRs was $5.0 million and $2.2 million as of September 30, 2020 and December 31, 2019, respectively. Impaired Loans In connection with the adoption of ASU 2016-13 on January 1, 2020, the Company no longer provides information on impaired loans. Information on non-PCI impaired loans as of December 31, 2019 is presented as follows:
($ 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 and nine months ended September 30, 2019:
($ in thousands) |  |  |  |  |  |  |  |  |  | Three Months Ended September 30, 2019 |  | Nine Months Ended September 30, 2019 |  |  |  |
|  |  |  |  |  |  |  |  | Average Recorded Investment |  | Recognized Interest Income (1) |  | Average Recorded Investment |  | Recognized Interest Income (1) |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
C&I |  |  |  |  |  |  |  |  |  | $ | 150,063 |  |  | $ | 340 |  |  | $ | 198,024 |  |  | $ | 2,156 |  |  |  |  |
CRE: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
CRE |  |  |  |  |  |  |  |  |  | 28,846 |  |  | 114 |  |  | 33,329 |  |  | 363 |  |  |  |  |
Multifamily residential |  |  |  |  |  |  |  |  |  | 5,226 |  |  | 58 |  |  | 5,856 |  |  | 179 |  |  |  |  |
Total CRE |  |  |  |  |  |  |  |  |  | 34,072 |  |  | 172 |  |  | 39,185 |  |  | 542 |  |  |  |  |
Total commercial |  |  |  |  |  |  |  |  |  | 184,135 |  |  | 512 |  |  | 237,209 |  |  | 2,698 |  |  |  |  |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Single-family residential |  |  |  |  |  |  |  |  |  | 23,779 |  |  | 124 |  |  | 27,758 |  |  | 382 |  |  |  |  |
HELOCs |  |  |  |  |  |  |  |  |  | 15,382 |  |  | 37 |  |  | 19,529 |  |  | 93 |  |  |  |  |
Total residential mortgage |  |  |  |  |  |  |  |  |  | 39,161 |  |  | 161 |  |  | 47,287 |  |  | 475 |  |  |  |  |
Other consumer |  |  |  |  |  |  |  |  |  | 2,504 |  |  | — |  |  | 2,526 |  |  | — |  |  |  |  |
Total consumer |  |  |  |  |  |  |  |  |  | 41,665 |  |  | 161 |  |  | 49,813 |  |  | 475 |  |  |  |  |
Total non-PCI impaired loans |  |  |  |  |  |  |  |  |  | $ | 225,800 |  |  | $ | 673 |  |  | $ | 287,022 |  |  | $ | 3,173 |  |  |  |  |
(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 Loan Losses On January 1, 2020, the Company adopted ASU 2016-13 that establishes a single allowance framework for all financial assets measured at amortized cost and certain off-balance sheet credit exposures. It requires the measurement of the allowance for loan losses to be based on management’s best estimate of lifetime expected credit losses inherent in the Company’s relevant financial assets. Balance sheet information and results of operations for reporting periods beginning with January 1, 2020 are presented under ASC 326, while prior period comparisons continue to be presented under legacy GAAP. The process of the allowance for loan losses involves procedures to consider the unique risk characteristics of the portfolio segments. For each loan portfolio segment, the expected credit losses are estimated collectively for groups of loans with similar risk characteristics. For loans that do not share similar risk characteristics, the expected credit losses are estimated individually. Allowance for Collectively Evaluated Loans Quantitative Component — The allowance for loan losses is estimated using quantitative methods that consider a variety of factors such as historical loss experience, the current credit quality of the portfolio, as well as an economic outlook over the life of the loan. The Company incorporates forward-looking information using macroeconomic scenarios applied over the forecasted life of the loans. The forward-looking information is limited to the reasonable and supportable period. These macroeconomic scenarios include variables that are considered key drivers of increases and decreases in credit losses. The Company utilizes a probability-weighted multiple scenario forecast approach. These scenarios may consist of a base forecast representing management's view of the most likely outcome, combined with downside and upside scenarios reflecting possible worsening or improving economic conditions. A probability-weighted average of these macroeconomic scenarios over a reasonable and supportable forecast period is incorporated into the quantitative models. If the loans’ life extends beyond the reasonable and supportable forecast period, then historical experience is considered over the remaining life of the loans in estimation of the allowance for loan losses. Qualitative Component — The Company also considers the following qualitative factors in the determination of the collectively evaluated allowance, if these factors have not already been captured by the quantitative model. Such qualitative factors may include, but not limited to: •Loan growth trends; •The volume and severity of past due financial assets, and the volume and severity of adversely classified or rated financial assets; •The Company’s lending policies and procedures, including changes in lending strategies, underwriting standards, collection, write-off and recovery practices, •Knowledge of the borrower’s operations or the borrower’s standing in the community; •The quality of the Company’s credit review system; •The experience, ability and depth of the Company’s management, lending staff and other relevant staff; •The effect of other external factors such as the regulatory, legal and technological environments; and •Actual and expected changes in international, national, regional, and local economic and business conditions in which the Company operates, including the actual and expected conditions of various market segments. The following table provides key credit risk characteristics and macroeconomic variables that the Company uses to estimate the expected credit losses by portfolio segment:
Portfolio Segment |  | Risk Characteristics |  | Macroeconomic Variables
C&I |  | Internal risk rating; size and credit spread at origination, and time to maturity |  | Unemployment rate, and two and ten year treasury spread
CRE, Multifamily residential, and Construction and land |  | Delinquency status; maturity date; collateral value; property type, and geographic location |  | Unemployment rate; GDP, and U.S. Treasury rates
Single-family residential and HELOCs |  | FICO; delinquency status; maturity date; collateral value, and geographic location |  | Unemployment rate; GDP, and home price index
Other consumer |  | Historical loss experience |  | Immaterial (1)
(1)Macroeconomic variables are included in the qualitative estimate. Management updated the macroeconomic forecast used in its credit loss estimation process as of September 30, 2020, which reflected more stabilized economic conditions as a result of an improved macroeconomic forecast, compared with June 30, 2020. The improvements in the macroeconomic forecast used in the credit loss estimation reflected improvements in gross domestic product growth and unemployment rate forecasts. The Company also considered the economic uncertainty caused by the COVID-19 pandemic, U.S. monetary and fiscal responses to the pandemic, the expected impacts of lower oil prices and deteriorating credit trends on the oil & gas portfolio, among other assumptions. For the three and nine months ended September 30, 2020, there were no changes to the reasonable and supportable forecast period, and reversion to historical loss experience method. Allowance for Loan Losses for the Commercial Loan Portfolio — The Company’s C&I loan 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 receivable, to determine expected credit losses. 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. For CRE loans, projected probability of defaults (“PDs”) and loss given defaults (“LGDs”) are applied to the estimated exposure at default, considering the term and payment structure of the loan, to generate estimates of expected loss at the loan level. After a reasonable and supportable period, the forecast of future economic conditions reverts to long-run historical economic trends. 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. Allowance for Loan Losses for the Consumer Loan Portfolio — For single-family residential and HELOC loans, projected PDs and LGDs are applied to the estimated exposure at default, considering the term and payment structure of the loan, to generate estimates of expected loss at the loan level. After a reasonable and supportable period, the forecast of future economic conditions reverts to long-run historical economic trends. 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. Qualitative Allowance for Collectively Evaluated Loans — While the Company’s allowance methodologies strive to reflect all relevant credit risk factors, there continues to be uncertainty associated with, but not limited to, potential imprecision in the estimation process due to the inherent time lag of obtaining information and normal variations between expected and actual outcomes. The Company may hold additional qualitative reserves that are designed to provide coverage for losses attributable to such risk. The allowance for loan losses as of September 30, 2020 also included qualitative adjustments for certain industry sectors, such as oil & gas, included as part of the C&I loan portfolio. Allowance for 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 fair value of collateral less costs to sell; (2) the present value of expected future cash flows; and (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 not to 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 September 30, 2020, collateral-dependent commercial and consumer loans totaled $109.7 million and $17.6 million, respectively. The Company's commercial collateral-dependent loans were secured by real estates or other collateral. The Company's consumer collateral-dependent loans were all residential mortgage loans, secured by their underlying real estates. As of September 30, 2020, the collateral value of the properties securing each of these collateral dependent loans, net of selling costs, exceeded the recorded value of the individual loans. For the three and nine months ended September 30, 2020, there were no significant changes or deterioration in the collateral securing these loans. The following tables summarize the activity in the allowance for loan losses by portfolio segments for the three and nine months ended September 30, 2020 and 2019:
($ in thousands) |  | Three Months Ended September 30, 2020
| Commercial |  | Consumer |  | Total |  |  |  |
| C&I |  | CRE |  | Residential Mortgage |  | Other Consumer |  |  |  |  |
|  | CRE |  | Multifamily Residential |  | Construction and Land |  | Single- Family Residential |  | HELOCs |  |  |  |  |  |
Allowance for loan losses, beginning of period |  | $ | 380,723 |  |  | $ | 176,040 |  |  | $ | 25,058 |  |  | $ | 18,551 |  |  | $ | 25,314 |  |  | $ | 3,867 |  |  | $ | 2,518 |  |  | $ | 632,071 |  |  |  |  |
Provision for (reversal of) credit losses on loans | (a) | 31,691 |  |  | (8,301) |  |  | (1,916) |  |  | (8,180) |  |  | (2,692) |  |  | (637) |  |  | (76) |  |  | 9,889 |  |  |  |  |
Gross charge-offs |  | (25,111) |  |  | (1,414) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (124) |  |  | (26,649) |  |  |  |  |
Gross recoveries |  | 1,218 |  |  | 485 |  |  | 665 |  |  | 30 |  |  | — |  |  | 43 |  |  | — |  |  | 2,441 |  |  |  |  |
Total net (charge-offs) recoveries |  | (23,893) |  |  | (929) |  |  | 665 |  |  | 30 |  |  | — |  |  | 43 |  |  | (124) |  |  | (24,208) |  |  |  |  |
Foreign currency translation adjustment |  | 500 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 500 |  |  |  |  |
Allowance for loan losses, end of period |  | $ | 389,021 |  |  | $ | 166,810 |  |  | $ | 23,807 |  |  | $ | 10,401 |  |  | $ | 22,622 |  |  | $ | 3,273 |  |  | $ | 2,318 |  |  | $ | 618,252 |  |  |  |  |
($ in thousands) |  | Three Months Ended September 30, 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, beginning of period |  | $ | 205,503 |  |  | $ | 39,811 |  |  | $ | 19,280 |  |  | $ | 22,961 |  |  | $ | 32,763 |  |  | $ | 6,177 |  |  | $ | 4,130 |  |  | $ | 330,625 |  |  |  |  |
Provision for (reversal of) credit losses on loans | (a) | 37,281 |  |  | (3,213) |  |  | 985 |  |  | 6,189 |  |  | (2,877) |  |  | (326) |  |  | (160) |  |  | 37,879 |  |  |  |  |
Gross charge-offs |  | (25,098) |  |  | (1,021) |  |  | — |  |  | — |  |  | (11) |  |  | — |  |  | (12) |  |  | (26,142) |  |  |  |  |
Gross recoveries |  | 1,648 |  |  | 1,896 |  |  | 42 |  |  | 21 |  |  | 60 |  |  | 5 |  |  | 7 |  |  | 3,679 |  |  |  |  |
Total net (charge-offs) recoveries |  | (23,450) |  |  | 875 |  |  | 42 |  |  | 21 |  |  | 49 |  |  | 5 |  |  | (5) |  |  | (22,463) |  |  |  |  |
Foreign currency translation adjustment |  | (465) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (465) |  |  |  |  |
Allowance for loan losses, end of period |  | $ | 218,869 |  |  | $ | 37,473 |  |  | $ | 20,307 |  |  | $ | 29,171 |  |  | $ | 29,935 |  |  | $ | 5,856 |  |  | $ | 3,965 |  |  | $ | 345,576 |  |  |  |  |
($ in thousands) |  | Nine Months Ended September 30, 2020
| Commercial |  | Consumer |  | Total |  |  |  |
| C&I |  | CRE |  | Residential Mortgage |  | Other Consumer |  |  |
|  | CRE |  | Multifamily Residential |  | Construction and Land |  | Single- Family Residential |  | HELOCs |  |  |  |
Allowance for loan losses, beginning of period |  | $ | 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 on loans | (a) | 130,171 |  |  | 46,449 |  |  | 7,273 |  |  | 828 |  |  | (2,659) |  |  | (20) |  |  | (3,197) |  |  | 178,845 |  |  |  |  |
Gross charge-offs |  | (57,466) |  |  | (2,688) |  |  | — |  |  | — |  |  | — |  |  | (221) |  |  | (180) |  |  | (60,555) |  |  |  |  |
Gross recoveries |  | 3,395 |  |  | 10,371 |  |  | 1,820 |  |  | 58 |  |  | 424 |  |  | 47 |  |  | 94 |  |  | 16,209 |  |  |  |  |
Total net (charge-offs) recoveries |  | (54,071) |  |  | 7,683 |  |  | 1,820 |  |  | 58 |  |  | 424 |  |  | (174) |  |  | (86) |  |  | (44,346) |  |  |  |  |
Foreign currency translation adjustment |  | 308 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 308 |  |  |  |  |
Allowance for loan losses, end of period |  | $ | 389,021 |  |  | $ | 166,810 |  |  | $ | 23,807 |  |  | $ | 10,401 |  |  | $ | 22,622 |  |  | $ | 3,273 |  |  | $ | 2,318 |  |  | $ | 618,252 |  |  |  |  |
($ in thousands) |  | Nine Months Ended September 30, 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, beginning of period |  | $ | 189,117 |  |  | $ | 40,666 |  |  | $ | 19,885 |  |  | $ | 20,290 |  |  | $ | 31,340 |  |  | $ | 5,774 |  |  | $ | 4,250 |  |  | $ | 311,322 |  |  |  |  |
Provision for (reversal of) credit losses on loans | (a) | 78,685 |  |  | (6,127) |  |  | 46 |  |  | 8,358 |  |  | (1,528) |  |  | 75 |  |  | (259) |  |  | 79,250 |  |  |  |  |
Gross charge-offs |  | (54,087) |  |  | (1,021) |  |  | — |  |  | — |  |  | (11) |  |  | — |  |  | (40) |  |  | (55,159) |  |  |  |  |
Gross recoveries |  | 5,612 |  |  | 3,955 |  |  | 376 |  |  | 523 |  |  | 134 |  |  | 7 |  |  | 14 |  |  | 10,621 |  |  |  |  |
Total net (charge-offs) recoveries |  | (48,475) |  |  | 2,934 |  |  | 376 |  |  | 523 |  |  | 123 |  |  | 7 |  |  | (26) |  |  | (44,538) |  |  |  |  |
Foreign currency translation adjustment |  | (458) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (458) |  |  |  |  |
Allowance for loan losses, end of period |  | $ | 218,869 |  |  | $ | 37,473 |  |  | $ | 20,307 |  |  | $ | 29,171 |  |  | $ | 29,935 |  |  | $ | 5,856 |  |  | $ | 3,965 |  |  | $ | 345,576 |  |  |  |  |
The following table summarizes the activity in the allowance for unfunded credit commitments for the three and nine months ended September 30, 2020 and 2019:
($ in thousands) |  | Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2020 |  | 2019 |  | 2020 |  | 2019
Unfunded credit facilities |  |  |  |  |  |  |  |
Allowance for unfunded credit commitments, beginning of period |  | $ | 28,972 |  |  | $ | 13,019 |  |  | $ | 11,158 |  |  | $ | 12,566 |
Impact of ASU 2016-13 adoption |  | — |  |  | — |  |  | 10,457 |  |  | — |
Provision for credit losses on unfunded credit commitments | (b) | 111 |  |  | 405 |  |  | 7,468 |  |  | 858 |
Allowance for unfunded credit commitments, end of period |  | $ | 29,083 |  |  | $ | 13,424 |  |  | $ | 29,083 |  |  | $ | 13,424 |
Provision for credit losses | (a) + (b) | $ | 10,000 |  |  | $ | 38,284 |  |  | $ | 186,313 |  |  | $ | 80,108 |
The allowance for loan losses as of September 30, 2020 was $618.3 million, an increase of $260.0 million compared with $358.3 million as of December 31, 2019. The overall increase in allowance for loan losses and the provision for credit losses of $186.3 million for the nine months ended September 30, 2020 were primarily driven by the deteriorating macroeconomic conditions and outlook as a result of the COVID-19 pandemic. In addition, the adoption of ASU 2016-13 increased the allowance for loan losses by $125.2 million on January 1, 2020. For the three months ended September 30, 2020, the provision for loan losses was $10.0 million, largely reflecting the improvement in the macroeconomic conditions and outlook as compared to June 30, 2020. The allowance for unfunded credit commitments is maintained at a level that management believes to be sufficient to absorb estimated expected credit losses related to unfunded credit facilities. See Note 10 — Commitments and Contingencies to the Consolidated Financial Statements in this Form 10-Q for additional information related to unfunded credit commitments. The following table presents the Company’s allowance for loan losses and recorded investments by portfolio segments and impairment methodology as of December 31, 2019. This table is no longer presented after December 31, 2019, given the adoption of ASU 2016-13 on January 1, 2020, which has a single impairment methodology.
($ 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 |
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 PCD loans was adjusted to reflect the $1.2 million of allowance for loan losses. For the three and nine months ended September 30, 2020, the Company did not acquire any PCD loans. For information on PCD loans, see Note 2 — Current Accounting Developments and Summary of Significant Accounting Policies to the Consolidated Financial Statements in this Form 10-Q. The following table presents the changes in the accretable yield on PCI loans for the three and nine months ended September 30, 2019:
($ in thousands) |  |  |  | Three Months Ended September 30, 2019 |  | Nine Months Ended September 30, 2019 |  |
Accretable yield for PCI loans, beginning of period |  |  |  |  |  | $ | 64,053 |  |  | $ | 74,870 |  |  |
Accretion |  |  |  |  |  | (6,198) |  |  | (18,205) |  |  |
Changes in expected cash flows |  |  |  |  |  | (934) |  |  | 256 |  |  |
Accretable yield for PCI loans, end of period |  |  |  |  |  | $ | 56,921 |  |  | $ | 56,921 |  |  |
Loans Held-for-Sale As of September 30, 2020 and December 31, 2019, loans held-for-sale of $4.1 million and $434 thousand, respectively, consisted of single-family residential loans. Refer to Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Loans Held-for-Sale to the Consolidated Financial Statements of the Company’s 2019 Form 10-K for additional details related to the Company’s loans held-for-sale. Loan Transfers, Sales and Purchases The Company purchases and sells loans in the secondary market in the ordinary course of business. Purchased loans may be transferred from held-for-investment to held-for-sale, and write-downs to allowance for loan losses are recorded, when appropriate. The following tables provide information about the carrying value of loans purchased for the held-for-investment portfolio, loans sold, and loans transferred from held-for-investment to held-for-sale at the lower of cost or fair value during the three and nine months ended September 30, 2020 and 2019:
($ in thousands) |  | Three Months Ended September 30, 2020
| Commercial |  | Consumer |  |  |  |  |  | Total
| C&I |  | CRE |  | Residential Mortgage |  |  |  |  |
|  | CRE |  | Multifamily Residential |  | Construction and Land |  | Single-Family Residential |  |  |  |  |
Loans transferred from held-for-investment to held-for-sale (1) |  | $ | 89,394 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  |  |  |  |  | $ | 89,394 |
Sales (2)(3)(4) |  | $ | 92,237 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 31,847 |  |  |  |  |  |  | $ | 124,084 |
Purchases |  | $ | — |  |  | $ | — |  |  | $ | 838 |  |  | $ | — |  |  | $ | 17,294 |  |  |  |  |  |  | $ | 18,132 |
($ in thousands) |  | Three Months Ended September 30, 2019
| Commercial |  | Consumer |  |  |  |  |  | Total
| C&I |  | CRE |  | Residential Mortgage |  |  |  |  |
|  | CRE |  | Multifamily Residential |  | Construction and Land |  | Single-Family Residential |  |  |  |
Loans transferred from held-for-investment to held-for-sale (1) |  | $ | 34,071 |  |  | $ | 14,969 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  |  |  |  |  | $ | 49,040 |
Sales (2)(3)(4) |  | $ | 37,986 |  |  | $ | 14,969 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,708 |  |  |  |  |  |  | $ | 55,663 |
Purchases (5) |  | $ | 38,047 |  |  | $ | — |  |  | $ | 1,350 |  |  | $ | — |  |  | $ | 29,568 |  |  |  |  |  |  | $ | 68,965 |
($ in thousands) |  | Nine Months Ended September 30, 2020
| Commercial |  | Consumer |  |  |  |  |  | Total
| C&I |  | CRE |  | Residential Mortgage |  |  |  |  |
|  | CRE |  | Multifamily Residential |  | Construction and Land |  | Single-Family Residential |  |  |  |
Loans transferred from held-for-investment to held-for-sale (1) |  | $ | 246,052 |  |  | $ | 7,250 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  |  |  |  |  | $ | 253,302 |
Sales (2)(3)(4) |  | $ | 248,895 |  |  | $ | 7,250 |  |  | $ | — |  |  | $ | — |  |  | $ | 50,197 |  |  |  |  |  |  | $ | 306,342 |
Purchases (5) |  | $ | 143,086 |  |  | $ | — |  |  | $ | 2,358 |  |  | $ | — |  |  | $ | 18,378 |  |  |  |  |  |  | $ | 163,822 |
($ in thousands) |  | Nine Months Ended September 30, 2019
| Commercial |  | Consumer |  |  |  |  |  | Total
| C&I |  | CRE |  | Residential Mortgage |  |  |  |  |
|  | CRE |  | Multifamily Residential |  | Construction and Land |  | Single-Family Residential |  |  |  |
Loans transferred from held-for-investment to held-for-sale (1) |  | $ | 189,237 |  |  | $ | 31,624 |  |  | $ | — |  |  | $ | 1,573 |  |  | $ | — |  |  |  |  |  |  | $ | 222,434 |
Sales (2)(3)(4) |  | $ | 189,663 |  |  | $ | 31,624 |  |  | $ | — |  |  | $ | 1,573 |  |  | $ | 6,322 |  |  |  |  |  |  | $ | 229,182 |
Purchases (5) |  | $ | 304,341 |  |  | $ | — |  |  | $ | 7,302 |  |  | $ | — |  |  | $ | 83,607 |  |  |  |  |  |  | $ | 395,250 |
(1)The Company recorded write-downs of $2.8 million to the allowance for loan losses related to loans transferred from held-for-investment to held-for-sale for each of the three and nine months ended September 30, 2020, and $36 thousand and $426 thousand for the same periods in 2019, respectively. (2)Includes originated loans sold of $112.3 million and $294.6 million for the three and nine months ended September 30, 2020, respectively, and $47.8 million and $180.0 million for the same periods in 2019, respectively. Originated loans sold consist primarily of C&I and single-family residential loans during the three and nine months ended September 30, 2020. In comparison, originated loans sold consist primarily of C&I loans for the same periods in 2019. (3)Includes purchased loans of $11.8 million sold in the secondary market for each of the three and nine months ended September 30, 2020, and $7.9 million and $49.2 million for the same periods in 2019, respectively. (4)Net gains on sales of loans were $361 thousand and $1.4 million for the three and nine months ended September 30, 2020, respectively, and $2.0 million and $3.0 million for the same periods in 2019, respectively. (5)C&I loan purchases 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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