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LOANS AND LEASES AND ALLOWANCE FOR LOAN AND LEASE LOSSES | 12 Months Ended
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Dec. 31, 2018
Receivables [Abstract] |
LOANS AND LEASES AND ALLOWANCE FOR LOAN AND LEASE LOSSES | LOANS AND LEASES AND ALLOWANCE FOR LOAN AND LEASE LOSSES 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
December 31, 2018 |  |  |  |  |  |
Commercial: |  |  |  |  |  |
Commercial and industrial |  | $ | — |  |  | $ | 1,944,142 |  |  | $ | 1,944,142 |
Commercial real estate |  | — |  |  | 867,013 |  |  | 867,013 |
Multifamily |  | — |  |  | 2,241,246 |  |  | 2,241,246 |
SBA |  | — |  |  | 68,741 |  |  | 68,741 |
Construction |  | — |  |  | 203,976 |  |  | 203,976 |
Lease financing |  | — |  |  | — |  |  | — |
Consumer: |  |  |  |  |  |
Single family residential mortgage |  | 824,318 |  |  | 1,481,172 |  |  | 2,305,490 |
Other consumer |  | 2,413 |  |  | 67,852 |  |  | 70,265 |
Total loans and leases (1) |  | $ | 826,731 |  |  | $ | 6,874,142 |  |  | $ | 7,700,873 |
Percentage to total loans and leases |  | 10.7 | % |  | 89.3 | % |  | 100.0 | %
Allowance for loan and lease losses |  |  |  |  |  | (62,192 | )
Loans and leases receivable, net |  |  |  |  |  | $ | 7,638,681 |
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 (1) |  | $ | 806,933 |  |  | $ | 5,852,474 |  |  | $ | 6,659,407 |
Percentage to total loans and leases |  | 12.1 | % |  | 87.9 | % |  | 100.0 | %
Allowance for loan and lease losses |  |  |  |  |  | (49,333 | )
Loans and leases receivable, net |  |  |  |  |  | $ | 6,610,074 |
(1) | Total loans and leases includes deferred loan origination costs/(fees) and premiums/(discounts), net of $17.7 million and $6.4 million, respectively, at December 31, 2018 and 2017.
Non-Traditional Mortgage Loans The Company’s NTM portfolio is comprised of three interest only products: Green Loans, Interest Only loans and a small number of additional loans with the potential for negative amortization. As of December 31, 2018 and 2017, the NTM loans totaled $826.7 million, or 10.7 percent of total loans and leases, and $806.9 million, or 12.1 percent of total loans and leases, respectively. The total NTM portfolio increased by $19.8 million, or 2.5 percent, during the year ended December 31, 2018. The following table presents the composition of the NTM portfolio as of the dates indicated:
|  | December 31,
|  | 2018 |  | 2017
($ in thousands) |  | Count |  | Amount |  | Percent |  | Count |  | Amount |  | Percent
Green Loans (HELOC) - first liens |  | 88 |  |  | $ | 67,729 |  |  | 8.2 | % |  | 101 |  |  | $ | 82,197 |  |  | 10.2 | %
Interest only - first liens |  | 519 |  |  | 753,061 |  |  | 91.1 | % |  | 468 |  |  | 717,484 |  |  | 88.9 | %
Negative amortization |  | 11 |  |  | 3,528 |  |  | 0.4 | % |  | 11 |  |  | 3,674 |  |  | 0.5 | %
Total NTM - first liens |  | 618 |  |  | 824,318 |  |  | 99.7 | % |  | 580 |  |  | 803,355 |  |  | 99.6 | %
Green Loans (HELOC) - second liens |  | 10 |  |  | 2,413 |  |  | 0.3 | % |  | 12 |  |  | 3,578 |  |  | 0.4 | %
Total NTM - second liens |  | 10 |  |  | 2,413 |  |  | 0.3 | % |  | 12 |  |  | 3,578 |  |  | 0.4 | %
Total NTM loans |  | 628 |  |  | $ | 826,731 |  |  | 100.0 | % |  | 592 |  |  | $ | 806,933 |  |  | 100.0 | %
Total loans and leases |  |  |  | $ | 7,700,873 |  |  |  |  |  |  | $ | 6,659,407 |  |  |
Percentage to total loans and leases |  |  |  | 10.7 | % |  |  |  |  |  | 12.1 | % |  |
Green Loans Green Loans are single family residential first and second mortgage lines of credit with a linked checking account that allows all types of deposits and withdrawals to be performed. The loans are generally interest only for a 15-year term with a balloon payment due at maturity. At December 31, 2018 and 2017, Green Loans totaled $70.1 million and $85.8 million, respectively. At December 31, 2018 and 2017, none of the Company’s Green Loans were non-performing. 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 LTV ratios and the Company’s contractual ability to curtail loans when the value of the underlying collateral declines. The Company discontinued origination of the Green Loan products in 2011. Interest Only Loans Interest Only loans are primarily single family residential first mortgage loans with payment features that allow interest only payments in initial periods before converting to a fully amortizing loan. At December 31, 2018 and 2017, Interest Only loans totaled $753.1 million and $717.5 million, respectively. At December 31, 2018 and 2017, $0 and $1.2 million of the Interest Only loans were non-performing, respectively. Loans with the Potential for Negative Amortization Negative amortization loans totaled $3.5 million and $3.7 million at December 31, 2018 and 2017, respectively. The Company discontinued origination of negative amortization loans in 2007. At December 31, 2018 and 2017, none of the loans with the potential for negative amortization were non-performing. These loans pose a potentially higher credit risk because of the lack of principal amortization and potential for negative amortization; however, management believes the risk is mitigated through the loan terms and underwriting standards, including the Company’s policies on LTV ratios. Risk Management of Non-Traditional Mortgages The Company has determined that significant performance indicators for NTMs are LTV ratios and FICO scores. Accordingly, the Company manages credit risk in the NTM portfolio through periodic review of the loan portfolio that includes refreshing FICO scores on the Green Loans and HELOCs, as needed in conjunction with portfolio management, and ordering third party AVMs. The loan review is designed to provide a method of identifying borrowers who may be experiencing financial difficulty before they actually fail to make a loan payment. Upon receipt of the updated FICO scores, an exception report is run to identify loans with a decrease in FICO score of 10 percent or more and/or a resulting FICO score of 620 or less. The loans are then further analyzed to determine if the risk rating should be downgraded, which will increase the reserves the Company will establish for potential losses. A report of the periodic loan review is published and regularly monitored. As these loans are revolving lines of credit, the Company, based on the loan agreement and loan covenants of the particular loan, as well as applicable rules and regulations, could suspend the borrowing privileges or reduce the credit limit at any time the Company reasonably believes that the borrower will be unable to fulfill their repayment obligations under the agreement or certain other conditions are met. In many cases, the decrease in FICO score is the first indication that the borrower may have difficulty in making their future payment obligations. The Company proactively manages the NTM portfolio by performing detailed analyses on the portfolio. The Company’s IARC meets at least quarterly to review the loans classified as special mention, substandard, or doubtful and determines whether a suspension or reduction in credit limit is warranted. If a line has been suspended and the borrower would like to have their credit privileges reinstated, they would need to provide updated financials showing their ability to meet their payment obligations. On the interest only loans, the Company projects future payment changes to determine if there will be a material increase in the required payment and then monitors the loans for possible delinquency. Individual loans are monitored for possible downgrading of risk rating. Non-Traditional Mortgage Performance Indicators The following table presents the Company’s Green Loans first lien portfolio at December 31, 2018 by FICO scores that were obtained during the quarter ended December 31, 2018, comparing to the FICO scores for those same loans that were obtained during the quarter ended December 31, 2017:
|  | December 31, 2018
|  | By FICO Scores Obtained During the Quarter Ended December 31, 2018 |  | By FICO Scores Obtained During the Quarter Ended December 31, 2017 |  | Change
($ in thousands) |  | Count |  | Amount |  | Percent |  | Count |  | Amount |  | Percent |  | Count |  | Amount |  | Percent
FICO score |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
800+ |  | 16 |  |  | $ | 10,617 |  |  | 15.7 | % |  | 12 |  |  | $ | 7,407 |  |  | 10.9 | % |  | 4 |  |  | $ | 3,210 |  |  | 4.8 | %
700-799 |  | 50 |  |  | 34,888 |  |  | 51.5 | % |  | 44 |  |  | 28,327 |  |  | 41.8 | % |  | 6 |  |  | 6,561 |  |  | 9.7 | %
600-699 |  | 16 |  |  | 14,098 |  |  | 20.8 | % |  | 23 |  |  | 23,406 |  |  | 34.6 | % |  | (7 | ) |  | (9,308 | ) |  | (13.8 | )%
<600 |  | 3 |  |  | 4,347 |  |  | 6.4 | % |  | 5 |  |  | 4,679 |  |  | 6.9 | % |  | (2 | ) |  | (332 | ) |  | (0.5 | )%
No FICO score |  | 3 |  |  | 3,779 |  |  | 5.6 | % |  | 4 |  |  | 3,910 |  |  | 5.8 | % |  | (1 | ) |  | (131 | ) |  | (0.2 | )%
Total |  | 88 |  |  | $ | 67,729 |  |  | 100.0 | % |  | 88 |  |  | $ | 67,729 |  |  | 100.0 | % |  | — |  |  | $ | — |  |  | — | %
Loan to Value Ratio LTV ratio represents estimated current loan to value ratio, determined by dividing current unpaid principal balance by latest estimated property value received per the Company policy. The table below represents the Company’s single family residential NTM first lien portfolio by LTV ratios as of the dates indicated:
LTV Ratios |  | Green |  | Interest Only |  | Negative Amortization |  | Total
($ in thousands) |  | Count |  | Amount |  | Percent |  | Count |  | Amount |  | Percent |  | Count |  | Amount |  | Percent |  | Count |  | Amount |  | Percent
December 31, 2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
< 61 |  | 69 |  |  | $ | 51,827 |  |  | 76.5 | % |  | 312 |  |  | $ | 495,930 |  |  | 65.9 | % |  | 11 |  |  | $ | 3,528 |  |  | 100.0 | % |  | 392 |  |  | $ | 551,285 |  |  | 66.9 | %
61-80 |  | 17 |  |  | 13,476 |  |  | 19.9 | % |  | 201 |  |  | 245,568 |  |  | 32.6 | % |  | — |  |  | — |  |  | — | % |  | 218 |  |  | 259,044 |  |  | 31.4 | %
81-100 |  | 2 |  |  | 2,426 |  |  | 3.6 | % |  | 5 |  |  | 7,441 |  |  | 1.0 | % |  | — |  |  | — |  |  | — | % |  | 7 |  |  | 9,867 |  |  | 1.2 | %
> 100 |  | — |  |  | — |  |  | — | % |  | 1 |  |  | 4,122 |  |  | 0.5 | % |  | — |  |  | — |  |  | — | % |  | 1 |  |  | 4,122 |  |  | 0.5 | %
Total |  | 88 |  |  | $ | 67,729 |  |  | 100.0 | % |  | 519 |  |  | $ | 753,061 |  |  | 100.0 | % |  | 11 |  |  | $ | 3,528 |  |  | 100.0 | % |  | 618 |  |  | $ | 824,318 |  |  | 100.0 | %
December 31, 2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
< 61 |  | 60 |  |  | $ | 51,241 |  |  | 62.3 | % |  | 242 |  |  | $ | 407,810 |  |  | 56.8 | % |  | 9 |  |  | $ | 2,826 |  |  | 76.9 | % |  | 311 |  |  | $ | 461,877 |  |  | 57.5 | %
61-80 |  | 33 |  |  | 25,072 |  |  | 30.5 | % |  | 220 |  |  | 300,500 |  |  | 41.9 | % |  | 2 |  |  | 848 |  |  | 23.1 | % |  | 255 |  |  | 326,420 |  |  | 40.6 | %
81-100 |  | 8 |  |  | 5,884 |  |  | 7.2 | % |  | 6 |  |  | 9,174 |  |  | 1.3 | % |  | — |  |  | — |  |  | — | % |  | 14 |  |  | 15,058 |  |  | 1.9 | %
> 100 |  | — |  |  | — |  |  | — | % |  | — |  |  | — |  |  | — | % |  | — |  |  | — |  |  | — | % |  | — |  |  | — |  |  | — | %
Total |  | 101 |  |  | $ | 82,197 |  |  | 100.0 | % |  | 468 |  |  | $ | 717,484 |  |  | 100.0 | % |  | 11 |  |  | $ | 3,674 |  |  | 100.0 | % |  | 580 |  |  | $ | 803,355 |  |  | 100.0 | %
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 partial or full charge-off of the principal balance. The Company maintains the ALLL at a level that is considered adequate to cover the estimated incurred loss 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 loss. 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 determine the adequacy of the reserve. At December 31, 2018 and 2017, the reserve for unfunded loan commitments was $4.6 million and $3.7 million, respectively, which are recorded in Accrued Expenses and Other Liabilities on the Consolidated Statements of Financial Condition. The credit risk monitoring system is designed to identify impaired and potential problem loans, and to perform periodic evaluation of impairment and the adequacy of the allowance for credit losses in a timely manner. In addition, the Board of Directors of the Bank has adopted a credit policy that includes a credit review and control system that it believes should be effective in ensuring that the Company maintains an adequate allowance for loan and lease losses. The Board of Directors also provides oversight and guidance for management’s allowance evaluation process. The Company’s loan segmentation increased from 11 to 13 segments, with the addition of an Indirect Leverage Lending segment and a Warehouse FixNFlip segment. Management concluded these products represented unique credit and risk characteristics to warrant separate segmentation. Additionally, management enhanced the methodology in the areas of qualitative adjustments, and performed an annual update of the loss emergence period. These updates were designed to be systematic, transparent, and repeatable. None of the updates and enhancements made to the ALLL methodology had a material impact on the reserve at December 31, 2018. The following table presents a summary of activity in the ALLL for the periods indicated:
|  | Year Ended December 31,
($ in thousands) |  | 2018 |  | 2017 |  | 2016
Balance at beginning of year |  | $ | 49,333 |  |  | $ | 40,444 |  |  | $ | 35,533 |
Loans and leases charged-off |  | (18,499 | ) |  | (5,581 | ) |  | (2,618 | )
Recoveries of loans and leases previously charged off |  | 1,143 |  |  | 771 |  |  | 2,258 |
Provision for loan and lease losses |  | 30,215 |  |  | 13,699 |  |  | 5,271 |
Balance at end of year |  | $ | 62,192 |  |  | $ | 49,333 |  |  | $ | 40,444 |
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 $15.0 million line of credit that was originated during the three months ended March 31, 2018. Subsequent to the granting of the line of credit, representations from the borrower in applying for the line of credit were determined by the Bank to be false, and third party bank account statements provided by the borrower to secure the line of credit were found to be fraudulent. The line of credit was granted after the borrower appeared to have satisfied a pre-condition that the line of credit be fully cash collateralized and secured by a bank account at a third party financial institution pledged to the Bank. As part of the Bank’s credit review and portfolio management process, the line of credit and disbursements were reviewed subsequent to closing and compliance with the borrower’s covenants was monitored. As part of this process, on March 9, 2018, the Bank received information that caused it to believe the existence of the pledged bank account had been misrepresented by the borrower and that the account had previously been closed. The Bank filed an action in federal court pursuing the borrower and other parties and is also considering other available sources of collection and other potential means of mitigating the loss; however, no assurance can be given that it will be successful in this regard. Upon extensive review of the underwriting process for this loan, the Bank determined that this loan was the result of an isolated event of external fraud. The following table presents the activity and balance in the ALLL and the recorded investment, excluding accrued interest, in loans and leases by portfolio segment and is based on the impairment method as of or for the year ended December 31, 2018:
($ in thousands) |  | Commercial and Industrial |  | Commercial Real Estate |  | Multifamily |  | SBA |  | Construction |  | Lease Financing |  | Single Family Residential Mortgage |  | Other Consumer |  | Total
ALLL: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at December 31, 2017 |  | $ | 14,280 |  |  | $ | 4,971 |  |  | $ | 13,265 |  |  | $ | 1,701 |  |  | $ | 3,318 |  |  | $ | — |  |  | $ | 10,996 |  |  | $ | 802 |  |  | $ | 49,333 |
Charge-offs |  | (1,927 | ) |  | — |  |  | (14 | ) |  | (1,927 | ) |  | — |  |  | — |  |  | (558 | ) |  | (14,073 | ) |  | (18,499 | )
Recoveries |  | 396 |  |  | — |  |  | — |  |  | 273 |  |  | — |  |  | 15 |  |  | 436 |  |  | 23 |  |  | 1,143 |
Provision |  | 5,442 |  |  | 1,703 |  |  | 4,719 |  |  | 1,780 |  |  | 143 |  |  | (15 | ) |  | 2,254 |  |  | 14,189 |  |  | 30,215 |
Balance at December 31, 2018 |  | $ | 18,191 |  |  | $ | 6,674 |  |  | $ | 17,970 |  |  | $ | 1,827 |  |  | $ | 3,461 |  |  | $ | — |  |  | $ | 13,128 |  |  | $ | 941 |  |  | $ | 62,192 |
Individually evaluated for impairment |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 562 |  |  | $ | — |  |  | $ | — |  |  | $ | 161 |  |  | $ | 106 |  |  | $ | 829 |
Collectively evaluated for impairment |  | 18,191 |  |  | 6,674 |  |  | 17,970 |  |  | 1,265 |  |  | 3,461 |  |  | — |  |  | 12,967 |  |  | 835 |  |  | 61,363 |
Total ending ALLL |  | $ | 18,191 |  |  | $ | 6,674 |  |  | $ | 17,970 |  |  | $ | 1,827 |  |  | $ | 3,461 |  |  | $ | — |  |  | $ | 13,128 |  |  | $ | 941 |  |  | $ | 62,192 |
Loans and leases: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | $ | 5,455 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,376 |  |  | $ | — |  |  | $ | — |  |  | $ | 18,193 |  |  | $ | 921 |  |  | $ | 26,945 |
Collectively evaluated for impairment |  | 1,938,687 |  |  | 867,013 |  |  | 2,241,246 |  |  | 66,365 |  |  | 203,976 |  |  | — |  |  | 2,287,297 |  |  | 69,344 |  |  | 7,673,928 |
Total loans and leases |  | $ | 1,944,142 |  |  | $ | 867,013 |  |  | $ | 2,241,246 |  |  | $ | 68,741 |  |  | $ | 203,976 |  |  | $ | — |  |  | $ | 2,305,490 |  |  | $ | 70,265 |  |  | $ | 7,700,873 |
The following table presents the activity and balance in the ALLL and the recorded investment, excluding accrued interest, in loans and leases by portfolio segment and is based on the impairment method as of or for the year ended December 31, 2017:
($ in thousands) |  | Commercial and Industrial |  | Commercial Real Estate |  | Multifamily |  | SBA |  | Construction |  | Lease Financing |  | Single Family Residential Mortgage |  | Other Consumer |  | Total
ALLL: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at December 31, 2016 |  | $ | 7,584 |  |  | $ | 5,467 |  |  | $ | 11,376 |  |  | $ | 939 |  |  | $ | 2,015 |  |  | $ | 6 |  |  | $ | 12,075 |  |  | $ | 982 |  |  | $ | 40,444 |
Charge-offs |  | (1,730 | ) |  | (113 | ) |  | — |  |  | (625 | ) |  | (29 | ) |  | — |  |  | (2,806 | ) |  | (278 | ) |  | (5,581 | )
Recoveries |  | 54 |  |  | — |  |  | — |  |  | 422 |  |  | — |  |  | 32 |  |  | 1 |  |  | 262 |  |  | 771 |
Provision |  | 8,372 |  |  | (383 | ) |  | 1,889 |  |  | 965 |  |  | 1,332 |  |  | (38 | ) |  | 1,726 |  |  | (164 | ) |  | 13,699 |
Balance at December 31, 2017 |  | $ | 14,280 |  |  | $ | 4,971 |  |  | $ | 13,265 |  |  | $ | 1,701 |  |  | $ | 3,318 |  |  | $ | — |  |  | $ | 10,996 |  |  | $ | 802 |  |  | $ | 49,333 |
Individually evaluated for impairment |  | $ | 498 |  |  | $ | — |  |  | $ | — |  |  | $ | 435 |  |  | $ | — |  |  | $ | — |  |  | $ | 277 |  |  | $ | 7 |  |  | $ | 1,217 |
Collectively evaluated for impairment |  | 13,782 |  |  | 4,971 |  |  | 13,265 |  |  | 1,266 |  |  | 3,318 |  |  | — |  |  | 10,719 |  |  | 795 |  |  | 48,116 |
Total ending ALLL |  | $ | 14,280 |  |  | $ | 4,971 |  |  | $ | 13,265 |  |  | $ | 1,701 |  |  | $ | 3,318 |  |  | $ | — |  |  | $ | 10,996 |  |  | $ | 802 |  |  | $ | 49,333 |
Loans and leases: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | $ | 3,582 |  |  | $ | — |  |  | $ | — |  |  | $ | 944 |  |  | $ | — |  |  | $ | — |  |  | $ | 14,699 |  |  | $ | 4,825 |  |  | $ | 24,050 |
Collectively evaluated for impairment |  | 1,698,369 |  |  | 717,415 |  |  | 1,816,141 |  |  | 77,755 |  |  | 182,960 |  |  | 13 |  |  | 2,040,950 |  |  | 101,754 |  |  | 6,635,357 |
Total loans and leases |  | $ | 1,701,951 |  |  | $ | 717,415 |  |  | $ | 1,816,141 |  |  | $ | 78,699 |  |  | $ | 182,960 |  |  | $ | 13 |  |  | $ | 2,055,649 |  |  | $ | 106,579 |  |  | $ | 6,659,407 |
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.
|  | December 31,
|  | 2018 |  | 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 allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 5,491 |  |  | $ | 5,455 |  |  | $ | — |  |  | $ | 471 |  |  | $ | 453 |  |  | $ | — |
SBA |  | 1,668 |  |  | 1,588 |  |  | — |  |  | 342 |  |  | 335 |  |  | — |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |
Single family residential mortgage |  | 12,115 |  |  | 12,161 |  |  | — |  |  | 7,521 |  |  | 7,553 |  |  | — |
Other consumer |  | 469 |  |  | 469 |  |  | — |  |  | 4,664 |  |  | 4,663 |  |  | — |
With an allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | — |  |  | — |  |  | — |  |  | 3,146 |  |  | 3,129 |  |  | 498 |
SBA |  | 823 |  |  | 788 |  |  | 562 |  |  | 635 |  |  | 609 |  |  | 435 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |
Single family residential mortgage |  | 5,993 |  |  | 6,032 |  |  | 161 |  |  | 7,090 |  |  | 7,146 |  |  | 277 |
Other consumer |  | 468 |  |  | 452 |  |  | 106 |  |  | 157 |  |  | 162 |  |  | 7 |
Total |  | $ | 27,027 |  |  | $ | 26,945 |  |  | $ | 829 |  |  | $ | 24,026 |  |  | $ | 24,050 |  |  | $ | 1,217 |
The following table presents information on impaired loans and leases, disaggregated by class, for the periods indicated:
|  | Year Ended December 31,
|  | 2018 |  | 2017 |  | 2016
($ in thousands) |  | Average Recorded Investment |  | Interest Income Recognized |  | Cash Basis Interest Recognized |  | Average Recorded Investment |  | Interest Income Recognized |  | Cash Basis Interest Recognized |  | Average Recorded Investment |  | Interest Income Recognized |  | Cash Basis Interest Recognized
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 5,380 |  |  | $ | 4 |  |  | $ | 4 |  |  | $ | 1,034 |  |  | $ | — |  |  | $ | — |  |  | $ | 3,490 |  |  | $ | 183 |  |  | $ | 208 |
Commercial real estate |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 148 |  |  | 24 |  |  | 24 |
Multifamily |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
SBA |  | 986 |  |  | 4 |  |  | 3 |  |  | 357 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Construction |  | — |  |  | — |  |  | — |  |  | 382 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Lease Financing |  | — |  |  | — |  |  | — |  |  | 19 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Single family residential mortgage |  | 19,694 |  |  | 236 |  |  | 199 |  |  | 12,611 |  |  | 199 |  |  | 182 |  |  | 27,150 |  |  | 862 |  |  | 835 |
Other consumer |  | 771 |  |  | 12 |  |  | 11 |  |  | 1,757 |  |  | 8 |  |  | 8 |  |  | 294 |  |  | 8 |  |  | 9 |
Total |  | $ | 26,831 |  |  | $ | 256 |  |  | $ | 217 |  |  | $ | 16,158 |  |  | $ | 207 |  |  | $ | 190 |  |  | $ | 31,081 |  |  | $ | 1,077 |  |  | $ | 1,076 |
Past Due Loans and Leases The following table presents the aging of the recorded investment in past due loans and leases as of December 31, 2018, excluding accrued interest receivable (which is not considered to be material), by class of loans and leases:
|  | December 31, 2018
($ in thousands) |  | 30 - 59 Days Past Due |  | 60 - 89 Days Past Due |  | Greater than 89 Days Past due |  | Total Past Due |  | Current |  | Total
NTM loans: |  |  |  |  |  |  |  |  |  |  |  |
Single family residential mortgage |  | $ | 7,430 |  |  | $ | 617 |  |  | $ | — |  |  | $ | 8,047 |  |  | $ | 816,271 |  |  | $ | 824,318 |
Other consumer |  | — |  |  | — |  |  | — |  |  | — |  |  | 2,413 |  |  | 2,413 |
Total NTM loans |  | 7,430 |  |  | 617 |  |  | — |  |  | 8,047 |  |  | 818,684 |  |  | 826,731 |
Traditional loans and leases: |  |  |  |  |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | 350 |  |  | 1,596 |  |  | 3,340 |  |  | 5,286 |  |  | 1,938,856 |  |  | 1,944,142 |
Commercial real estate |  | — |  |  | 582 |  |  | — |  |  | 582 |  |  | 866,431 |  |  | 867,013 |
Multifamily |  | 356 |  |  | — |  |  | — |  |  | 356 |  |  | 2,240,890 |  |  | 2,241,246 |
SBA |  | 551 |  |  | 77 |  |  | 862 |  |  | 1,490 |  |  | 67,251 |  |  | 68,741 |
Construction |  | — |  |  | 939 |  |  | — |  |  | 939 |  |  | 203,037 |  |  | 203,976 |
Lease financing |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |
Single family residential mortgage |  | 7,321 |  |  | 3,160 |  |  | 9,198 |  |  | 19,679 |  |  | 1,461,493 |  |  | 1,481,172 |
Other consumer |  | 3,132 |  |  | 573 |  |  | 446 |  |  | 4,151 |  |  | 63,701 |  |  | 67,852 |
Total traditional loans and leases |  | 11,710 |  |  | 6,927 |  |  | 13,846 |  |  | 32,483 |  |  | 6,841,659 |  |  | 6,874,142 |
Total loans and leases |  | $ | 19,140 |  |  | $ | 7,544 |  |  | $ | 13,846 |  |  | $ | 40,530 |  |  | $ | 7,660,343 |  |  | $ | 7,700,873 |
The following table presents the aging of the recorded investment in past due loans and leases as of December 31, 2017, excluding accrued interest receivable (which is not considered to be material), by class of loans and leases:
|  | December 31, 2017
($ in thousands) |  | 30 - 59 Days Past Due |  | 60 - 89 Days Past Due |  | Greater than 89 Days Past due |  | Total Past Due |  | Current |  | Total
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 loans and leases |  | $ | 22,830 |  |  | $ | 9,257 |  |  | $ | 9,542 |  |  | $ | 41,629 |  |  | $ | 6,617,778 |  |  | $ | 6,659,407 |
Non-accrual Loans and Leases The following table presents the composition of non-accrual loans and leases as of the dates indicated:
|  | December 31,
|  | 2018 |  | 2017
($ in thousands) |  | NTM Loans |  | Traditional Loans and Leases |  | Total |  | NTM Loans |  | Traditional Loans and Leases |  | Total
Commercial: |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | — |  |  | $ | 5,455 |  |  | $ | 5,455 |  |  | $ | — |  |  | $ | 3,723 |  |  | $ | 3,723 |
SBA |  | — |  |  | 2,574 |  |  | 2,574 |  |  | — |  |  | 1,781 |  |  | 1,781 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |
Single family residential mortgage |  | — |  |  | 12,929 |  |  | 12,929 |  |  | 1,171 |  |  | 8,176 |  |  | 9,347 |
Other consumer |  | — |  |  | 627 |  |  | 627 |  |  | — |  |  | 4,531 |  |  | 4,531 |
Total |  | $ | — |  |  | $ | 21,585 |  |  | $ | 21,585 |  |  | $ | 1,171 |  |  | $ | 18,211 |  |  | $ | 19,382 |
At December 31, 2018 and 2017, $470 thousand and $0 of loans were past due 90 days or more and still accruing. Loans in Process of Foreclosure At December 31, 2018 and 2017, consumer mortgage loans of $5.1 million and $4.3 million, respectively, were secured by residential real estate properties for which formal foreclosure proceedings were in the process according to local requirements of the applicable jurisdiction. Troubled Debt Restructurings A modification of a loan constitutes a TDR when the Company, for economic or legal reasons related to a borrower’s financial difficulties, grants a concession to the borrower that it would not otherwise consider. The concessions may be granted in various forms, including reduction in the stated interest rate, reduction in the amount of principal amortization, forgiveness of a portion of the loan balance or accrued interest, or extension of the maturity date. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Company’s internal underwriting policy. Troubled debt restructured loans and leases consisted of the following as of the dates indicated:
|  | December 31,
|  | 2018 |  | 2017
($ in thousands) |  | NTM Loans |  | Traditional Loans |  | Total |  | NTM Loans |  | Traditional Loans |  | Total
Commercial: |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | — |  |  | $ | 2,276 |  |  | $ | 2,276 |  |  | $ | — |  |  | $ | 2,675 |  |  | $ | 2,675 |
SBA |  | — |  |  | 187 |  |  | 187 |  |  | — |  |  | — |  |  | — |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |
Single family residential mortgage |  | 2,668 |  |  | 2,596 |  |  | 5,264 |  |  | 2,699 |  |  | 2,653 |  |  | 5,352 |
Other consumer |  | 294 |  |  | — |  |  | 294 |  |  | 294 |  |  | — |  |  | 294 |
Total |  | $ | 2,962 |  |  | $ | 5,059 |  |  | $ | 8,021 |  |  | $ | 2,993 |  |  | $ | 5,328 |  |  | $ | 8,321 |
The Company did not have any commitments to lend to customers with outstanding loans that were classified as troubled debt restructurings as of December 31, 2018 and 2017. Accruing TDRs were $5.7 million and non-accrual TDRs were $2.3 million at December 31, 2018 compared to accruing TDRs $5.6 million and non-accrual TDRs of $2.7 million at December 31, 2017. The following table summarizes the pre-modification and post-modification balances of the new TDRs for the periods indicated:
|  | Year Ended December 31,
|  | 2018 |  | 2017 |  | 2016
($ in thousands) |  | Number of Loans |  | Pre-Modification Outstanding Recorded Investment |  | Post-Modification Outstanding Recorded Investment |  | Number of Loans |  | Pre-Modification Outstanding Recorded Investment |  | Post-Modification Outstanding Recorded Investment |  | Number of Loans |  | Pre-Modification Outstanding Recorded Investment |  | Post-Modification Outstanding Recorded Investment
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | 2 |  |  | $ | 171 |  |  | $ | 163 |  |  | 1 |  |  | $ | 2,706 |  |  | $ | 2,706 |  |  | — |  |  | $ | — |  |  | $ | — |
SBA |  | 1 |  |  | 187 |  |  | 187 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Single family residential mortgage |  | — |  |  | — |  |  | — |  |  | 3 |  |  | 2,416 |  |  | 2,433 |  |  | 42 |  |  | 10,278 |  |  | 10,273 |
Total |  | 3 |  |  | $ | 358 |  |  | $ | 350 |  |  | 4 |  |  | $ | 5,122 |  |  | $ | 5,139 |  |  | 42 |  |  | $ | 10,278 |  |  | $ | 10,273 |
For the years ended December 31, 2018, 2017, and 2016, there were no loans and leases that were modified as TDRs during the past 12 months that had subsequent payment defaults during the periods. The following table summarizes the TDRs by modification type for the periods indicated:
|  | Modification Type
|  | Change in Principal Payments and Interest Rates |  | Change in Principal Payments |  | Change in Interest Rates |  | Chapter 7 Bankruptcy |  | Other |  | Total
($ in thousands) |  | Count |  | Amount |  | Count |  | Amount |  | Count |  | Amount |  | Count |  | Amount |  | Count |  | Amount |  | Count |  | Amount
Year ended December 31, 2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | — |  |  | $ | — |  |  | 2 |  |  | $ | 163 |  |  | — |  |  | $ | — |  |  | — |  |  | $ | — |  |  | — |  |  | $ | — |  |  | 2 |  |  | $ | 163 |
SBA |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | 187 |  |  | 1 |  |  | 187 |
Total |  | — |  |  | $ | — |  |  | 2 |  |  | $ | 163 |  |  | — |  |  | $ | — |  |  | — |  |  | $ | — |  |  | 1 |  |  | $ | 187 |  |  | 3 |  |  | $ | 350 |
Year ended December 31, 2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | — |  |  | $ | — |  |  | 1 |  |  | $ | 2,706 |  |  | — |  |  | $ | — |  |  | — |  |  | $ | — |  |  | — |  |  | $ | — |  |  | 1 |  |  | $ | 2,706 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Single family residential mortgage |  | 2 |  |  | 1,290 |  |  | 1 |  |  | 1,143 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3 |  |  | 2,433 |
Total |  | 2 |  |  | $ | 1,290 |  |  | 2 |  |  | $ | 3,849 |  |  | — |  |  | $ | — |  |  | — |  |  | $ | — |  |  | — |  |  | $ | — |  |  | 4 |  |  | $ | 5,139 |
Year ended December 31, 2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Single family residential mortgage |  | 34 |  |  | $ | 8,622 |  |  | 4 |  |  | $ | 780 |  |  | 2 |  |  | $ | 146 |  |  | 1 |  |  | $ | 519 |  |  | 1 |  |  | $ | 206 |  |  | 42 |  |  | $ | 10,273 |
Total |  | 34 |  |  | $ | 8,622 |  |  | 4 |  |  | $ | 780 |  |  | 2 |  |  | $ | 146 |  |  | 1 |  |  | $ | 519 |  |  | 1 |  |  | $ | 206 |  |  | 42 |  |  | $ | 10,273 |
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 institution 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. Loans and leases not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans and leases. The following table presents the risk categories for total loans and leases as of December 31, 2018:
|  | December 31, 2018
($ in thousands) |  | Pass |  | Special Mention |  | Substandard |  | Doubtful |  | Total
NTM loans: |  |  |  |  |  |  |  |  |  |
Single family residential mortgage |  | $ | 811,056 |  |  | $ | 10,966 |  |  | $ | 2,296 |  |  | $ | — |  |  | $ | 824,318 |
Other consumer |  | 2,413 |  |  | — |  |  | — |  |  | — |  |  | 2,413 |
Total NTM loans |  | 813,469 |  |  | 10,966 |  |  | 2,296 |  |  | — |  |  | 826,731 |
Traditional loans and leases: |  |  |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | 1,859,569 |  |  | 41,302 |  |  | 43,271 |  |  | — |  |  | 1,944,142 |
Commercial real estate |  | 851,604 |  |  | 11,376 |  |  | 4,033 |  |  | — |  |  | 867,013 |
Multifamily |  | 2,239,301 |  |  | — |  |  | 1,945 |  |  | — |  |  | 2,241,246 |
SBA |  | 53,433 |  |  | 6,114 |  |  | 8,340 |  |  | 854 |  |  | 68,741 |
Construction |  | 197,851 |  |  | 3,606 |  |  | 2,519 |  |  | — |  |  | 203,976 |
Lease financing |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Consumer: |  |  |  |  |  |  |  |  |  |
Single family residential mortgage |  | 1,461,721 |  |  | 2,602 |  |  | 16,849 |  |  | — |  |  | 1,481,172 |
Other consumer |  | 66,228 |  |  | 979 |  |  | 645 |  |  | — |  |  | 67,852 |
Total traditional loans and leases |  | 6,729,707 |  |  | 65,979 |  |  | 77,602 |  |  | 854 |  |  | 6,874,142 |
Total loans and leases |  | $ | 7,543,176 |  |  | $ | 76,945 |  |  | $ | 79,898 |  |  | $ | 854 |  |  | $ | 7,700,873 |
The following table presents the risk categories for total loans and leases as of December 31, 2017:
|  | December 31, 2017
($ in thousands) |  | Pass |  | Special Mention |  | Substandard |  | Doubtful |  | Total
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 loans and leases |  | $ | 6,578,813 |  |  | $ | 39,770 |  |  | $ | 40,718 |  |  | $ | 106 |  |  | $ | 6,659,407 |
Purchases and Sales The following table presents loans and leases purchased and/or sold by portfolio segment, excluding loans held-for-sale, loans and leases acquired in business combinations or sold in sales of branches and business units, and PCI loans for the periods indicated:
|  | Year Ended December 31,
|  | 2018 |  | 2017 |  | 2016
($ in thousands) |  | Purchases |  | Sales |  | Purchases |  | Sales |  | Purchases |  | Sales
Commercial: |  |  |  |  |  |  |  |  |  |  |  |
Lease financing |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 91,247 |  |  | $ | (19,741 | )
Consumer: |  |  |  |  |  |  |  |  |  |  |  |
Single family residential mortgage |  | 59,481 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (149,413 | )
Total |  | $ | 59,481 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 91,247 |  |  | $ | (169,154 | )
Loan purchases during the year ended December 31, 2018 were made at a net premium of $2.3 million. For the purchased loans and leases disclosed above, the Company did not incur any specific allowances for loan and lease losses during the years ended December 31, 2018, 2017, and 2016. The Company determined that it was probable at acquisition that all contractually required payments would be collected. The sales of loans and leases above exclude the transfer of lease financing loans totaling $242.7 million in the sale of the Commercial Equipment Finance business unit to Hanmi during the year ended December 31, 2016. The following table presents loans and leases transferred from (to) loans held-for-sale by portfolio segment, excluding loans and leases transferred in connection with sales of branches and business units, and PCI loans for the periods indicated:
|  | Year Ended December 31,
|  | 2018 |  | 2017 |  | 2016
($ in thousands) |  | Transfers from Held-For-Sale |  | Transfers to Held-For-Sale |  | Transfers from Held-For-Sale |  | Transfers to Held-For-Sale |  | Transfers from Held-For-Sale |  | Transfers to Held-For-Sale
Commercial: |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | — |  |  | $ | (1,133 | ) |  | $ | — |  |  | $ | (3,924 | ) |  | $ | — |  |  | $ | (1,757 | )
Commercial real estate |  | — |  |  | — |  |  | — |  |  | (1,329 | ) |  | — |  |  | (2,792 | )
Multifamily |  | — |  |  | (81,449 | ) |  | — |  |  | (6,583 | ) |  | — |  |  | (81,780 | )
SBA |  | — |  |  | — |  |  | — |  |  | (1,865 | ) |  | — |  |  | — |
Construction |  | — |  |  | (434 | ) |  | — |  |  | (1,528 | ) |  | — |  |  | — |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |
Single family residential mortgage |  | — |  |  | (289,617 | ) |  | 88,591 |  |  | (450,625 | ) |  | 7,115 |  |  | (105,337 | )
Other consumer |  | — |  |  | (4,362 | ) |  | — |  |  | — |  |  | — |  |  | — |
Total |  | $ | — |  |  | $ | (376,995 | ) |  | $ | 88,591 |  |  | $ | (465,854 | ) |  | $ | 7,115 |  |  | $ | (191,666 | )
Purchased Credit Impaired Loans The Company had no PCI loans at December 31, 2018 or 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 for PCI loans:
|  | Year Ended December 31,
($ in thousands) |  | 2018 |  | 2017 |  | 2016
Balance at beginning of year |  | $ | — |  |  | $ | 41,181 |  |  | $ | 205,549 |
New loans or leases purchased |  | — |  |  | — |  |  | 23,568 |
Accretion of income |  | — |  |  | (3,833 | ) |  | (34,616 | )
Decrease in expected cash flows |  | — |  |  | (225 | ) |  | (10,650 | )
Disposals |  | — |  |  | (34,886 | ) |  | (142,670 | )
Other |  | — |  |  | (2,237 | ) |  | — |
Balance at end of year |  | $ | — |  |  | $ | — |  |  | $ | 41,181 |
The following table presents PCI loans purchased for the periods indicated:
|  | Year Ended December 31,
($ in thousands) |  | 2018 |  | 2017 |  | 2016
Consumer: |  |  |  |  |  |
Single family residential mortgage |  | $ | — |  |  | $ | — |  |  | $ | 103,799 |
Outstanding unpaid principal balance at acquisition |  | $ | — |  |  | $ | — |  |  | $ | 103,799 |
Cash flows expected to be collected at acquisition |  | $ | — |  |  | $ | — |  |  | $ | 114,552 |
Fair value of acquired loans at acquisition |  | $ | — |  |  | $ | — |  |  | $ | 90,984 |
During the three months ended June 30, 2017, the Company transferred all of its seasoned SFR mortgage loans, which had an aggregate unpaid principal balance and an aggregate carrying value of $168.3 million and $147.9 million, respectively, to loans held-for-sale in order to improve the credit quality of the loan portfolio and provide additional liquidity. The Company transferred these loans at lower of cost or fair value and recorded a fair value adjustment of $1.8 million against its ALLL. This transfer included PCI loans with an aggregate unpaid principal balance and aggregate carrying value of $147.5 million and $128.4 million, respectively, and recorded a fair value adjustment of $274 thousand. All of these loans were sold during the three months ended September 30, 2017. On the date of sale settlement, the aggregate unpaid principal balance and aggregate carrying value were $165.7 million and $144.2 million, respectively, and the Company recognized a gain on sale of $4.7 million. The Company sold seasoned SFR mortgage loans with an aggregate unpaid principal balance and aggregate carrying value of $766.0 million and $707.4 million respectively, during the year ended December 31, 2016, and the Company recognized a gain on sale of $24.7 million.

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