LOANS AND LEASES AND ALLOWANCE FOR LOAN AND LEASE LOSSES

9 Months Ended

Sep. 30, 2018

LOANS AND LEASES AND ALLOWANCE FOR LOAN AND LEASE LOSSES

The Company's loan and lease portfolio includes Commercial and Industrial, Commercial Real Estate, Multifamily, SBA, Construction, Lease Financing, Single Family Residential Mortgage and Other Consumer loans. The Company’s Non-Traditional Mortgage (NTM) loans are included in Single Family Residential Mortgage and Other Consumer loans. NTM loans are comprised of three interest only products: Green Account Loans (Green Loans), which are a type of home equity line of credit (HELOC), fixed or adjustable rate hybrid interest only mortgage (Interest Only) loans and a small number of additional loans with the potential for negative amortization.

The following table presents the balances in the Company’s loans and leases portfolio as of the dates indicated:



($ in thousands)	NTM Loans		Traditional Loans and Leases		Total Loans and Leases Receivable
September 30, 2018
Commercial:
Commercial and industrial	$	—	$	1,673,055	$	1,673,055
Commercial real estate	—		823,193		823,193
Multifamily	—		2,112,190		2,112,190
SBA	—		71,494		71,494
Construction	—		200,294		200,294
Lease financing	—		—		—
Consumer:
Single family residential mortgage	831,169		1,468,900		2,300,069
Other consumer	3,132		69,866		72,998
Total loans and leases	$	834,301	$	6,418,992	$	7,253,293
Allowance for loan and lease losses					(57,782		)
Loans and leases receivable, net					$	7,195,511
December 31, 2017
Commercial:
Commercial and industrial	$	—	$	1,701,951	$	1,701,951
Commercial real estate	—		717,415		717,415
Multifamily	—		1,816,141		1,816,141
SBA	—		78,699		78,699
Construction	—		182,960		182,960
Lease financing	—		13		13
Consumer:
Single family residential mortgage	803,355		1,252,294		2,055,649
Other consumer	3,578		103,001		106,579
Total loans and leases	$	806,933	$	5,852,474	$	6,659,407
Allowance for loan and lease losses					(49,333		)
Loans and leases receivable, net					$	6,610,074

Non-Traditional Mortgage Loans

The following table presents the composition of the NTM portfolio as of the dates indicated:



	September 30, 2018						December 31, 2017
($ in thousands)	Count	Amount			Percent		Count	Amount			Percent
Green Loans (HELOC) - first liens	91	$	70,470		8.4	%	101	$	82,197		10.2	%
Interest-only - first liens	517	757,135			90.8	%	468	717,484			88.9	%
Negative amortization	11	3,564			0.4	%	11	3,674			0.5	%
Total NTM - first liens	619	831,169			99.6	%	580	803,355			99.6	%
Green Loans (HELOC) - second liens	11	3,132			0.4	%	12	3,578			0.4	%
Total NTM - second liens	11	3,132			0.4	%	12	3,578			0.4	%
Total NTM loans	630	$	834,301		100.0	%	592	$	806,933		100.0	%
Total loans and leases		$	7,253,293					$	6,659,407
% of NTM to total loans and leases		11.5		%				12.1		%

Green Loans

Green Loans are SFR first and second mortgage lines of credit with a linked checking account that allows all types of deposits and withdrawals to be performed. These loans are generally interest only with a 15-year balloon payment due at maturity. As a result of their unique payment feature, Green Loans possess higher credit risk due to the potential for negative amortization. However, management believes the risk is mitigated through the Company’s loan terms and underwriting standards, including its policies on loan-to-value (LTV) ratios and the Company’s contractual ability to curtail loans when the value of the underlying collateral declines. The Company discontinued origination of Green Loans in 2011.

Interest Only Loans

Interest only loans are primarily SFR first mortgage loans with payment features that allow interest only payments in initial periods before converting to a fully amortizing loan.

Loans with the Potential for Negative Amortization

The Company discontinued origination of negative amortization loans in 2007. Negative amortization loans other than Green Loans pose a potentially higher credit risk because of the lack of principal amortization and potential for negative amortization. However, management believes the credit risk associated with these loans is mitigated through the loan terms and underwriting standards, including the Company’s policies on LTV ratios.

Allowance for Loan and Lease Losses

The Company has established credit risk management processes that include regular management review of the loan and lease portfolio to identify problem loans and leases. During the ordinary course of business, management becomes aware of borrowers and lessees who may not be able to fulfill the contractual payment requirements of the loan and lease agreements. Such loans and leases are subject to increased monitoring. Consideration is given to placing the loan or lease on non-accrual status, assessing the need for additional ALLL, and partially or fully charging off the principal balance. The Company maintains the ALLL at a level that is considered adequate to cover the estimated incurred losses in the loan and lease portfolio.

The Company also maintains a separate reserve for unfunded loan commitments at a level that is considered adequate to cover the estimated incurred losses. The estimated funding of the loan commitments and credit risk factors determined based on outstanding loans that share similar credit risk exposure are used to establish the reserve. At September 30, 2018 and December 31, 2017, the reserve for unfunded loan commitments was $4.2 million and $3.7 million, respectively, which are recorded in Accrued Expenses and Other Liabilities on the Consolidated Statements of Financial Condition.

The credit risk monitoring system is designed to identify impaired and potential problem loans and to perform periodic evaluation of impairment and the adequacy of the allowance for credit losses in a timely manner. In addition, the Board of Directors of the Bank has adopted a credit policy that includes a credit review and control system that it believes is effective in ensuring that the Company maintains an adequate allowance for loan and lease losses. The Board of Directors also provides oversight and guidance for management’s allowance evaluation process.

The following table presents a summary of activity in the ALLL for the periods indicated:



	Three Months Ended September 30,						Nine Months Ended September 30,
($ in thousands)	2018			2017			2018			2017
Balance at beginning of period	$	56,678		$	42,385		$	49,333		$	40,444
Loans and leases charged off	(388		)	(959		)	(15,977		)	(4,214		)
Recoveries of loans and leases previously charged off	82			85			864			195
Provision for loan and lease losses	1,410			3,561			23,562			8,647
Balance at end of period	$	57,782		$	45,072		$	57,782		$	45,072

During the three months ended March 31, 2018, the Company recorded a charge-off of $13.9 million, which reflected the outstanding balance under a $15.0 million line of credit that was originated during the three months ended March 31, 2018. Subsequent to the granting of the line of credit, representations from the borrower in applying for the line of credit were determined by the Bank to be false, and third party bank account statements provided by the borrower to secure the line of credit were found to be fraudulent. The line of credit was granted after the borrower appeared to have satisfied a pre-condition that the line of credit be fully cash collateralized and secured by a bank account at a third party financial institution pledged to the Bank. As part of the Bank’s credit review and portfolio management process, the line of credit and disbursements were reviewed subsequent to closing and compliance with the borrower’s covenants was monitored. As part of this process, on March 9, 2018, the Bank received information that caused it to believe the existence of the pledged bank account had been misrepresented by the borrower and that the account had previously been closed. The Bank filed an action in federal court pursuing the borrower and other parties and is also considering other available sources of collection and other potential means of mitigating the loss; however, no assurance can be given that it will be successful in this regard. Upon extensive review of the underwriting process for this loan, the Bank determined that this loan was the result of an isolated event of external fraud.

The following table presents the activity and balance in the ALLL and the recorded investment, excluding accrued interest, in loans and leases based on the impairment methodology as of or for the three and nine months ended September 30, 2018:



($ in thousands)	Commercial and Industrial			Commercial Real Estate		Multifamily			SBA			Construction			Lease Financing			Single Family Residential Mortgage			Other Consumer			Total
ALLL:
Balance at June 30, 2018	$	16,864		$	5,732	$	14,630		$	1,840		$	3,419		$	—		$	13,236		$	957		$	56,678
Charge-offs	(342		)	—		—			—			—			—			(45		)	(1		)	(388		)
Recoveries	61			—		—			8			—			3			—			10			82
Provision	(40		)	280		843			22			(172		)	(3		)	407			73			1,410
Balance at September 30, 2018	$	16,543		$	6,012	$	15,473		$	1,870		$	3,247		$	—		$	13,598		$	1,039		$	57,782
Balance at December 31, 2017	$	14,280		$	4,971	$	13,265		$	1,701		$	3,318		$	—		$	10,996		$	802		$	49,333
Charge-offs	(689		)	—		(8		)	(683		)	—			—			(524		)	(14,073		)	(15,977		)
Recoveries	158			—		—			240			—			12			436			18			864
Provision	2,794			1,041		2,216			612			(71		)	(12		)	2,690			14,292			23,562
Balance at September 30, 2018	$	16,543		$	6,012	$	15,473		$	1,870		$	3,247		$	—		$	13,598		$	1,039		$	57,782
Individually evaluated for impairment	$	122		$	—	$	—		$	133		$	—		$	—		$	640		$	7		$	902
Collectively evaluated for impairment	16,421			6,012		15,473			1,737			3,247			—			12,958			1,032			56,880
Total ending ALLL balance	$	16,543		$	6,012	$	15,473		$	1,870		$	3,247		$	—		$	13,598		$	1,039		$	57,782
Loans:
Individually evaluated for impairment	$	5,614		$	—	$	—		$	1,834		$	—		$	—		$	22,364		$	739		$	30,551
Collectively evaluated for impairment	1,667,441			823,193		2,112,190			69,660			200,294			—			2,277,705			72,259			7,222,742
Total ending loan balances	$	1,673,055		$	823,193	$	2,112,190		$	71,494		$	200,294		$	—		$	2,300,069		$	72,998		$	7,253,293



($ in thousands)	Commercial and Industrial			Commercial Real Estate			Multifamily			SBA			Construction			Lease Financing			Single Family Residential Mortgage			Other Consumer			Total
ALLL:
Balance at June 30, 2017	$	10,495		$	5,126		$	10,686		$	1,084		$	2,974		$	3		$	11,009		$	1,008		$	42,385
Charge-offs	(571		)	—			—			(58		)	—			—			(78		)	(252		)	(959		)
Recoveries	—			—			—			83			—			—			—			2			85
Provision	2,576			202			588			188			238			(1		)	(564		)	334			3,561
Balance at September 30, 2017	$	12,500		$	5,328		$	11,274		$	1,297		$	3,212		$	2		$	10,367		$	1,092		$	45,072
Balance at December 31, 2016	$	7,584		$	5,467		$	11,376		$	939		$	2,015		$	6		$	12,075		$	982		$	40,444
Charge-offs	(953		)	(113		)	—			(351		)	(29		)	—			(2,490		)	(278		)	(4,214		)
Recoveries	—			—			—			157			—			29			1			8			195
Provision	5,869			(26		)	(102		)	552			1,226			(33		)	781			380			8,647
Balance at September 30, 2017	$	12,500		$	5,328		$	11,274		$	1,297		$	3,212		$	2		$	10,367		$	1,092		$	45,072
Individually evaluated for impairment	$	195		$	—		$	—		$	54		$	—		$	1		$	165		$	—		$	415
Collectively evaluated for impairment	12,305			5,328			11,274			1,243			3,212			1			10,202			1,092			44,657
Acquired with deteriorated credit quality	—			—			—			—			—			—			—			—			—
Total ending ALLL balance	$	12,500		$	5,328		$	11,274		$	1,297		$	3,212		$	2		$	10,367		$	1,092		$	45,072
Loans:
Individually evaluated for impairment	$	497		$	—		$	—		$	377		$	—		$	41		$	14,636		$	364		$	15,915
Collectively evaluated for impairment	1,602,308			713,120			1,617,890			78,227			176,397			50			1,905,674			117,316			6,210,982
Acquired with deteriorated credit quality	—			—			—			—			—			—			—			—			—
Total ending loan balances	$	1,602,805		$	713,120		$	1,617,890		$	78,604		$	176,397		$	91		$	1,920,310		$	117,680		$	6,226,897

The following table presents loans and leases individually evaluated for impairment by class of loans and leases as of the dates indicated. The recorded investment, excluding accrued interest, presents customer balances net of any partial charge-offs recognized on the loans and leases and net of any deferred fees and costs and any purchase premium or discount.



	September 30, 2018						December 31, 2017
($ in thousands)	Unpaid Principal Balance		Recorded Investment		Allowance for Loan and Lease Losses		Unpaid Principal Balance		Recorded Investment		Allowance for Loan and Lease Losses
With no related ALLL recorded:
Commercial:
Commercial and industrial	$	5,027	$	4,990	$	—	$	471	$	453	$	—
SBA	1,717		1,624		—		342		335		—
Consumer:
Single family residential mortgage	7,895		7,917		—		7,521		7,553		—
Other consumer	554		557		—		4,664		4,663		—
With an ALLL recorded:
Commercial:
Commercial and industrial	624		624		122		3,146		3,129		498
SBA	222		210		133		635		609		435
Consumer:
Single family residential mortgage	14,343		14,447		640		7,090		7,146		277
Other consumer	209		182		7		157		162		7
Total	$	30,591	$	30,551	$	902	$	24,026	$	24,050	$	1,217

The following table presents information on impaired loans and leases, disaggregated by class, for the periods indicated:




	Three Months Ended						Nine Months Ended
($ in thousands)	Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Recognized		Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Recognized
September 30, 2018
Commercial:
Commercial and industrial	$	5,423	$	—	$	—	$	5,552	$	4	$	4
SBA	1,240		—		—		756		—		—
Consumer:
Single family residential mortgage	20,908		60		50		20,299		175		146
Other consumer	744		3		4		751		9		9
Total	$	28,315	$	63	$	54	$	27,358	$	188	$	159
September 30, 2017
Commercial:
Commercial and industrial	$	506	$	—	$	—	$	169	$	—	$	—
SBA	378		—		—		126		—		—
Construction	—		—		—		509		—		—
Lease Financing	53		—		—		18		—		—
Consumer:
Single family residential mortgage	14,673		57		45		11,904		142		134
Other consumer	366		2		3		711		6		6
Total	$	15,976	$	59	$	48	$	13,437	$	148	$	140

Past Due Loans and Leases

The following table presents the aging of the recorded investment in past due loans and leases, excluding accrued interest receivable (which is not considered to be material), by class of loans and leases as of dates indicated:



($ in thousands)	30 - 59 Days Past Due		60 - 89 Days Past Due		Greater than 89 Days Past due		Total Past Due		Current		Total
September 30, 2018
NTM loans:
Single family residential mortgage	$	6,079	$	—	$	—	$	6,079	$	825,090	$	831,169
Other consumer	257		—		—		257		2,875		3,132
Total NTM loans	6,336		—		—		6,336		827,965		834,301
Traditional loans and leases:
Commercial:
Commercial and industrial	2,074		2,960		2,955		7,989		1,665,066		1,673,055
Commercial real estate	—		—		—		—		823,193		823,193
Multifamily	—		—		—		—		2,112,190		2,112,190
SBA	514		514		788		1,816		69,678		71,494
Construction	939		—		—		939		199,355		200,294
Consumer:
Single family residential mortgage	3,933		2,549		11,263		17,745		1,451,155		1,468,900
Other consumer	442		4		263		709		69,157		69,866
Total traditional loans and leases	7,902		6,027		15,269		29,198		6,389,794		6,418,992
Total	$	14,238	$	6,027	$	15,269	$	35,534	$	7,217,759	$	7,253,293
December 31, 2017
NTM loans:
Single family residential mortgage	$	9,060	$	1,879	$	1,171	$	12,110	$	791,245	$	803,355
Other consumer	—		—		—		—		3,578		3,578
Total NTM loans	9,060		1,879		1,171		12,110		794,823		806,933
Traditional loans and leases:
Commercial:
Commercial and industrial	136		3,595		948		4,679		1,697,272		1,701,951
Commercial real estate	—		—		—		—		717,415		717,415
Multifamily	—		—		—		—		1,816,141		1,816,141
SBA	3,578		—		1,319		4,897		73,802		78,699
Construction	—		—		—		—		182,960		182,960
Lease financing	—		—		—		—		13		13
Consumer:
Single family residential mortgage	6,862		3,370		6,012		16,244		1,236,050		1,252,294
Other consumer	3,194		413		92		3,699		99,302		103,001
Total traditional loans and leases	13,770		7,378		8,371		29,519		5,822,955		5,852,474
Total	$	22,830	$	9,257	$	9,542	$	41,629	$	6,617,778	$	6,659,407

Non-accrual Loans and Leases

The following table presents non-accrual loans and leases, and loans past due 90 days or more and still accruing as of the dates indicated:



	September 30, 2018						December 31, 2017
($ in thousands)	NTM Loans		Traditional Loans and Leases		Total		NTM Loans		Traditional Loans and Leases		Total
Non-accrual loans and leases ⁽¹⁾
Commercial:
Commercial and industrial	$	—	$	5,751	$	5,751	$	—	$	3,723	$	3,723
SBA	—		2,249		2,249		—		1,781		1,781
Consumer:
Single family residential mortgage	1,520		15,558		17,078		1,171		8,176		9,347
Other consumer	—		445		445		—		4,531		4,531
Total non-accrual loans and leases	$	1,520	$	24,003	$	25,523	$	1,171	$	18,211	$	19,382
Loans past due 90 days or more and still accruing	$	—	$	—	$	—	$	—	$	—	$	—

(1) The Company maintained specific reserves in ALLL for these loans, which were individually evaluated for impairment, of $567 thousand and $1.1 million at September 30, 2018 and December 31, 2017, respectively.

Loans in Process of Foreclosure

At September 30, 2018 and December 31, 2017, consumer mortgage loans of $1.9 million and $4.3 million, respectively, were secured by residential real estate properties for which formal foreclosure proceedings were in process according to local requirements of the applicable jurisdiction.

Troubled Debt Restructurings

A modification of a loan constitutes a troubled debt restructuring (TDR) when the Company, for economic or legal reasons related to a borrower’s financial difficulties, grants a concession to the borrower that it would not otherwise consider. The concessions may be granted in various forms, including reduction in the stated interest rate, reduction in the amount of principal amortization, forgiveness of a portion of the loan balance or accrued interest, or extension of the maturity date. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Company’s internal underwriting policy.

TDR loans consist of the following as of the dates indicated:



	September 30, 2018						December 31, 2017
($ in thousands)	NTM Loans		Traditional Loans		Total		NTM Loans		Traditional Loans		Total
Commercial:
Commercial and industrial	$	—	$	2,522	$	2,522	$	—	$	2,675	$	2,675
SBA	—		162		162		—		—		—
Consumer:
Single family residential mortgage	2,676		2,610		5,286		2,699		2,653		5,352
Other consumer	294		—		294		294		—		294
Total	$	2,970	$	5,294	$	8,264	$	2,993	$	5,328	$	8,321

The Company had no commitments to lend to customers with outstanding loans that were classified as TDRs as of September 30, 2018 or December 31, 2017. Accruing TDRs were $5.6 million and non-accrual TDRs were $2.7 million at September 30, 2018 compared to accruing TDRs of $5.6 million and non-accrual TDRs of $2.7 million at December 31, 2017.

The following table summarizes the pre-modification and post-modification balances of the new TDRs for the periods indicated:



	Nine Months Ended
($ in thousands)	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
September 30, 2018
Commercial:
Commercial and industrial	2	$	171	$	163
Total	2	$	171	$	163
September 30, 2017
Consumer:
Single family residential mortgage	3	$	2,416	$	2,433
Total	3	$	2,416	$	2,433

During the three months ended September 30, 2018 and September 30, 2017, there were no new TDRs.

The following table summarizes new TDRs by modification type for the nine months ended September 30, 2018 and 2017:



	Nine Months Ended
	Modification Type
	Change in Principal Payments and Interest Rates			Change in Principal Payments			Total
($ in thousands)	Count	Amount		Count	Amount		Count	Amount
September 30, 2018
Commercial:
Commercial and industrial	—	$	—	2	$	163	2	$	163
Total	—	$	—	2	$	163	2	$	163
September 30, 2017
Consumer:
Single family residential mortgage	2	$	1,290	1	$	1,143	3	$	2,433
Total	2	$	1,290	1	$	1,143	3	$	2,433

The Company considers a TDR to be in payment default once it becomes 30 days or more past due following a modification. For the three and nine months ended September 30, 2018, there was one commercial and industrial loan with a principal balance of $100 thousand that was modified as a TDR during the preceding 12 months that had payment defaults during the period. For the three months ended September 30, 2017, there were no loans that were modified as TDRs during the preceding 12 months that had payment defaults during the period. For the nine months ended September 30, 2017, there was one single family residential mortgage loan with a principal balance of $124 thousand that was modified as a TDR during the preceding 12 months that had payment defaults during the period.

Credit Quality Indicators

The Company categorizes loans and leases into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company performs historical loss analysis that is combined with a comprehensive loan or lease to value analysis to analyze the associated risks in the current loan and lease portfolio. The Company analyzes loans and leases individually by classifying the loans and leases as to credit risk. This analysis includes all loans and leases delinquent over 60 days and non-homogeneous loans and leases such as commercial and commercial real estate loans and leases. The Company uses the following definitions for risk ratings:

Pass: Loans and leases classified as pass are in compliance in all respects with the Bank’s credit policy and regulatory requirements, and do not exhibit any potential or defined weakness as defined under “Special Mention”, “Substandard” or “Doubtful”.

Special Mention: Loans and leases classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or lease or of the Company’s credit position at some future date.

Substandard: Loans and leases classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans and leases so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.

Doubtful: Loans and leases classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

The following table presents the risk categories for total loans and leases as of the dates indicated:



($ in thousands)	Pass		Special Mention		Substandard		Doubtful		Total
September 30, 2018
NTM loans:
Single family residential mortgage	$	827,087	$	1,576	$	2,506	$	—	$	831,169
Other consumer	3,132		—		—		—		3,132
Total NTM loans	830,219		1,576		2,506		—		834,301
Traditional loans and leases:
Commercial:
Commercial and industrial	1,600,534		34,482		38,039		—		1,673,055
Commercial real estate	807,803		11,320		4,070		—		823,193
Multifamily	2,110,589		—		1,601		—		2,112,190
SBA	56,649		4,754		9,811		280		71,494
Construction	196,857		3,437		—		—		200,294
Lease financing	—		—		—		—		—
Consumer:
Single family residential mortgage	1,446,826		2,969		19,105		—		1,468,900
Other consumer	68,998		404		464		—		69,866
Total traditional loans and leases	6,288,256		57,366		73,090		280		6,418,992
Total	$	7,118,475	$	58,942	$	75,596	$	280	$	7,253,293
December 31, 2017
NTM loans:
Single family residential mortgage	$	800,589	$	1,595	$	1,171	$	—	$	803,355
Other consumer	3,578		—		—		—		3,578
Total NTM loans	804,167		1,595		1,171		—		806,933
Traditional loans and leases:
Commercial:
Commercial and industrial	1,651,628		33,376		16,947		—		1,701,951
Commercial real estate	713,131		—		4,284		—		717,415
Multifamily	1,815,601		540		—		—		1,816,141
SBA	72,417		1,555		4,621		106		78,699
Construction	182,960		—		—		—		182,960
Lease financing	13		—		—		—		13
Consumer:
Single family residential mortgage	1,240,866		2,282		9,146		—		1,252,294
Other consumer	98,030		422		4,549		—		103,001
Total traditional loans and leases	5,774,646		38,175		39,547		106		5,852,474
Total	$	6,578,813	$	39,770	$	40,718	$	106	$	6,659,407

Purchases, Sales, and Transfers

From time to time, the Company purchases and sells loans in the secondary market. Certain loans are transferred from held-for-investment to held-for-sale at the lower of cost of fair value and any reductions in value on transfer are reflected as write-downs to allowance for loan losses. The Company had no purchases of loans and leases, excluding loans held-for-sale, for the three and nine months ended September 30, 2018 and 2017. The following table presents loans and leases transferred from (to) loans held-for-sale by portfolio segment for the periods indicated:



	Three Months Ended					Nine Months Ended
($ in thousands)	Transfers from Held-For-Sale		Transfers (to) Held-For-Sale			Transfers from Held-For-Sale		Transfers (to) Held-For-Sale
September 30, 2018
Commercial:
Commercial and industrial	$	—	$	(1,133	)	$	—	$	(1,133	)
Multifamily	—		—			—		(71,449		)
Consumer:
Single family residential mortgage	—		(18,886		)	—		(154,899		)
Other consumer	—		—			—		(4,362		)
Total	$	—	$	(20,019	)	$	—	$	(231,843	)
September 30, 2017
Commercial:
Commercial and industrial	$	—	$	—		$	—	$	(3,924	)
Commercial real estate	—		—			—		(1,329		)
Multifamily	—		—			—		(6,583		)
SBA	—		—			—		(1,865		)
Construction	—		—			—		(1,528		)
Consumer:
Single family residential mortgage	88,591		(45,899		)	88,591		(449,646		)
Total	$	88,591	$	(45,899	)	$	88,591	$	(464,875	)

Purchased Credit Impaired Loans

The Company had no PCI loans at September 30, 2018 or December 31, 2017, due mainly to the sale of seasoned SFR mortgage PCI loans during the year ended December 31, 2017. The Company had acquired loans through business combinations and purchases of loan pools for which there was evidence of deterioration of credit quality subsequent to origination and it was probable, at acquisition, that all contractually required payments would not be collected.

The following table presents a summary of accretable yield, or income expected to be collected, for the periods indicated:



	Three Months Ended September 30,			Nine Months Ended September 30,
($ in thousands)	2017			2017
Balance at beginning of period	$	2,237		$	41,181
Accretion of income	—			(3,833		)
Changes in expected cash flows	—			(225		)
Disposals	—			(34,886		)
Other	(2,237		)	(2,237		)
Balance at end of period	$	—		$	—

During the three months ended June 30, 2017, the Company transferred seasoned SFR mortgage PCI loans with an aggregate unpaid principal balance and aggregate carrying value of $147.5 million and $128.4 million, respectively, to loans held-for-sale. The Company transferred these PCI loans at lower of cost or fair value and recorded a fair value adjustment of $274 thousand against its ALLL. During the three months ended September 30, 2017, all of the transferred seasoned SFR mortgage PCI loans were sold and the Company recognized a net gain on sale of loans of $3.7 million.

- 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.

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