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LOANS AND ALLOWANCE FOR CREDIT LOSSES | 3 Months Ended
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Mar. 31, 2020
Receivables [Abstract] |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | LOANS AND ALLOWANCE FOR CREDIT LOSSES The following table presents the balances in our loan portfolio as of the dates indicated:
($ in thousands) |  | March 31, 2020 |  | December 31, 2019
Commercial: |  |  |  |
Commercial and industrial |  | $ | 1,578,223 |  |  | $ | 1,691,270 |
Commercial real estate |  | 810,024 |  |  | 818,817 |
Multifamily |  | 1,466,083 |  |  | 1,494,528 |
SBA |  | 70,583 |  |  | 70,981 |
Construction |  | 227,947 |  |  | 231,350 |
Consumer: |  |  |  |
Single family residential mortgage |  | 1,467,375 |  |  | 1,590,774 |
Other consumer |  | 47,229 |  |  | 54,165 |
Total loans(1) |  | $ | 5,667,464 |  |  | $ | 5,951,885 |
Allowance for loan losses |  | (78,243 | ) |  | (57,649 | )
Loans receivable, net |  | $ | 5,589,221 |  |  | $ | 5,894,236 |
(1) Total loans include deferred loan origination costs/(fees) and premiums/(discounts), net, of $13.2 million and $14.3 million, respectively, at March 31, 2020 and December 31, 2019. Credit Quality Indicators We categorize loans 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. We perform a historical loss analysis that is combined with a comprehensive loan to value analysis to analyze the associated risks in the current loan portfolio. We analyze loans individually by classifying the loans as to credit risk. This analysis includes all loans delinquent over 60 days and non-homogeneous loans such as commercial and commercial real estate loans. We use the following definitions for risk ratings: Pass: Loans 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 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 our credit position at some future date. Substandard: Loans 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 so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected. Doubtful: Loans 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 by class of loans and origination year as of March 31, 2020:
|  | Term Loans Amortized Cost Basis by Origination Year |  |  |  |  |  |
($ in thousands) |  | 2020 |  | 2019 |  | 2018 |  | 2017 |  | 2016 |  | Prior |  | Revolving Loans Amortized Cost Basis |  | Revolving Loans Amortized Cost Basis Converted to Term |  | Total
March 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 15,168 |  |  | $ | 121,892 |  |  | $ | 112,591 |  |  | $ | 69,585 |  |  | $ | 44,205 |  |  | $ | 138,326 |  |  | $ | 983,178 |  |  | $ | 4,743 |  |  | $ | 1,489,688 |
Special mention |  | — |  |  | 6,473 |  |  | 1,341 |  |  | — |  |  | — |  |  | — |  |  | 12,776 |  |  | 2,284 |  |  | 22,874 |
Substandard |  | 2,546 |  |  | 17,425 |  |  | — |  |  | 194 |  |  | 21,555 |  |  | 2,605 |  |  | 13,087 |  |  | 8,249 |  |  | 65,661 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Commercial and industrial |  | 17,714 |  |  | 145,790 |  |  | 113,932 |  |  | 69,779 |  |  | 65,760 |  |  | 140,931 |  |  | 1,009,041 |  |  | 15,276 |  |  | 1,578,223 |
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 15,189 |  |  | 152,789 |  |  | 229,702 |  |  | 73,134 |  |  | 102,913 |  |  | 218,978 |  |  | 8,011 |  |  | 1,588 |  |  | 802,304 |
Special mention |  | — |  |  | 1,803 |  |  | — |  |  | — |  |  | — |  |  | 742 |  |  | — |  |  | — |  |  | 2,545 |
Substandard |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 5,175 |  |  | — |  |  | — |  |  | 5,175 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Commercial real estate |  | 15,189 |  |  | 154,592 |  |  | 229,702 |  |  | 73,134 |  |  | 102,913 |  |  | 224,895 |  |  | 8,011 |  |  | 1,588 |  |  | 810,024 |
Multifamily |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 49,455 |  |  | 440,695 |  |  | 338,904 |  |  | 276,075 |  |  | 151,406 |  |  | 197,596 |  |  | — |  |  | — |  |  | 1,454,131 |
Special mention |  | — |  |  | — |  |  | 8,960 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 8,960 |
Substandard |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 2,992 |  |  | — |  |  | — |  |  | 2,992 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Multifamily |  | 49,455 |  |  | 440,695 |  |  | 347,864 |  |  | 276,075 |  |  | 151,406 |  |  | 200,588 |  |  | — |  |  | — |  |  | 1,466,083 |
SBA |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 1,787 |  |  | 16,067 |  |  | 1,388 |  |  | 5,300 |  |  | 15,105 |  |  | 19,797 |  |  | 1,667 |  |  | 515 |  |  | 61,626 |
Special mention |  | — |  |  | — |  |  | — |  |  | 229 |  |  | 479 |  |  | 987 |  |  | — |  |  | 7 |  |  | 1,702 |
Substandard |  | — |  |  | — |  |  | — |  |  | 1,060 |  |  | 1,529 |  |  | 1,515 |  |  | 336 |  |  | 1,197 |  |  | 5,637 |
Doubtful |  | — |  |  | — |  |  | 390 |  |  | — |  |  | 208 |  |  | 633 |  |  | — |  |  | 387 |  |  | 1,618 |
SBA |  | 1,787 |  |  | 16,067 |  |  | 1,778 |  |  | 6,589 |  |  | 17,321 |  |  | 22,932 |  |  | 2,003 |  |  | 2,106 |  |  | 70,583 |
Construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 12,948 |  |  | 39,120 |  |  | 76,619 |  |  | 87,270 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 215,957 |
Special mention |  | — |  |  | — |  |  | 8,012 |  |  | — |  |  | 3,978 |  |  | — |  |  | — |  |  | — |  |  | 11,990 |
Substandard |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Construction |  | 12,948 |  |  | 39,120 |  |  | 84,631 |  |  | 87,270 |  |  | 3,978 |  |  | — |  |  | — |  |  | — |  |  | 227,947 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Single family residential mortgage |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 5,431 |  |  | 177,908 |  |  | 371,674 |  |  | 221,287 |  |  | 328,033 |  |  | 304,408 |  |  | 21,157 |  |  | — |  |  | 1,429,898 |
Special mention |  | — |  |  | — |  |  | 1,157 |  |  | 668 |  |  | 5,070 |  |  | 4,057 |  |  | — |  |  | — |  |  | 10,952 |
Substandard |  | — |  |  | 1,074 |  |  | 498 |  |  | 3,420 |  |  | 3,253 |  |  | 17,763 |  |  | — |  |  | — |  |  | 26,008 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | 517 |  |  | — |  |  | — |  |  | — |  |  | 517 |
Single family residential mortgage |  | 5,431 |  |  | 178,982 |  |  | 373,329 |  |  | 225,375 |  |  | 336,873 |  |  | 326,228 |  |  | 21,157 |  |  | — |  |  | 1,467,375 |
Other consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 55 |  |  | 95 |  |  | 86 |  |  | — |  |  | 14 |  |  | 5,332 |  |  | 37,992 |  |  | 2,941 |  |  | 46,515 |
Special mention |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 224 |  |  | 224 |
Substandard |  | — |  |  | — |  |  | 35 |  |  | — |  |  | — |  |  | 34 |  |  | 322 |  |  | 99 |  |  | 490 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Other consumer |  | 55 |  |  | 95 |  |  | 121 |  |  | — |  |  | 14 |  |  | 5,366 |  |  | 38,314 |  |  | 3,264 |  |  | 47,229 |
Total loans |  | $ | 102,579 |  |  | $ | 975,341 |  |  | $ | 1,151,357 |  |  | $ | 738,222 |  |  | $ | 678,265 |  |  | $ | 920,940 |  |  | $ | 1,078,526 |  |  | $ | 22,234 |  |  | $ | 5,667,464 |
The following table presents the risk categories for total loans by class of loans as of December 31, 2019:
($ in thousands) |  | Pass |  | Special Mention |  | Substandard |  | Doubtful |  | Total
December 31, 2019 |  |  |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | 1,580,269 |  |  | 45,323 |  |  | 65,678 |  |  | — |  |  | 1,691,270 |
Commercial real estate |  | 813,846 |  |  | 2,532 |  |  | 2,439 |  |  | — |  |  | 818,817 |
Multifamily |  | 1,484,931 |  |  | 4,256 |  |  | 5,341 |  |  | — |  |  | 1,494,528 |
SBA |  | 60,982 |  |  | 2,760 |  |  | 5,621 |  |  | 1,618 |  |  | 70,981 |
Construction |  | 229,771 |  |  | 1,579 |  |  | — |  |  | — |  |  | 231,350 |
Consumer: |  |  |  |  |  |  |  |  |  |
Single family residential mortgage |  | 1,559,253 |  |  | 10,735 |  |  | 20,269 |  |  | 517 |  |  | 1,590,774 |
Other consumer |  | 53,331 |  |  | 346 |  |  | 488 |  |  | — |  |  | 54,165 |
Total |  | $ | 5,782,383 |  |  | $ | 67,531 |  |  | $ | 99,836 |  |  | $ | 2,135 |  |  | $ | 5,951,885 |
Past Due Loans The following table presents the aging of the recorded investment in past due loans, excluding accrued interest receivable (which is not considered to be material), by class of loans as of the 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
March 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |
Non-Traditional Mortgage (NTM) loans: |  |  |  |  |  |  |  |  |  |  |  |
Single family residential mortgage |  | $ | 8,043 |  |  | $ | 5,383 |  |  | $ | 14,577 |  |  | $ | 28,003 |  |  | $ | 530,161 |  |  | $ | 558,164 |
Other consumer |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,894 |  |  | 1,894 |
Total NTM loans |  | 8,043 |  |  | 5,383 |  |  | 14,577 |  |  | 28,003 |  |  | 532,055 |  |  | 560,058 |
Traditional loans: |  |  |  |  |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | 649 |  |  | 3,687 |  |  | 2,601 |  |  | 6,937 |  |  | 1,571,286 |  |  | 1,578,223 |
Commercial real estate |  | — |  |  | 264 |  |  | — |  |  | 264 |  |  | 809,760 |  |  | 810,024 |
Multifamily |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,466,083 |  |  | 1,466,083 |
SBA |  | 2,009 |  |  | 222 |  |  | 2,643 |  |  | 4,874 |  |  | 65,709 |  |  | 70,583 |
Construction |  | 734 |  |  | — |  |  | — |  |  | 734 |  |  | 227,213 |  |  | 227,947 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |
Single family residential mortgage |  | 32,993 |  |  | 1,600 |  |  | 8,771 |  |  | 43,364 |  |  | 865,847 |  |  | 909,211 |
Other consumer |  | 754 |  |  | — |  |  | 40 |  |  | 794 |  |  | 44,541 |  |  | 45,335 |
Total traditional loans |  | 37,139 |  |  | 5,773 |  |  | 14,055 |  |  | 56,967 |  |  | 5,050,439 |  |  | 5,107,406 |
Total |  | $ | 45,182 |  |  | $ | 11,156 |  |  | $ | 28,632 |  |  | $ | 84,970 |  |  | $ | 5,582,494 |  |  | $ | 5,667,464 |
December 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |
NTM loans: |  |  |  |  |  |  |  |  |  |  |  |
Single family residential mortgage |  | $ | 3,973 |  |  | $ | 3,535 |  |  | $ | 13,019 |  |  | $ | 20,527 |  |  | $ | 577,830 |  |  | $ | 598,357 |
Other consumer |  | — |  |  | — |  |  | — |  |  | — |  |  | 2,299 |  |  | 2,299 |
Total NTM loans |  | 3,973 |  |  | 3,535 |  |  | 13,019 |  |  | 20,527 |  |  | 580,129 |  |  | 600,656 |
Traditional loans: |  |  |  |  |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | 780 |  |  | 5,670 |  |  | 3,862 |  |  | 10,312 |  |  | 1,680,958 |  |  | 1,691,270 |
Commercial real estate |  | — |  |  | — |  |  | — |  |  | — |  |  | 818,817 |  |  | 818,817 |
Multifamily |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,494,528 |  |  | 1,494,528 |
SBA |  | 586 |  |  | 842 |  |  | 2,152 |  |  | 3,580 |  |  | 67,401 |  |  | 70,981 |
Construction |  | — |  |  | — |  |  | — |  |  | — |  |  | 231,350 |  |  | 231,350 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |
Single family residential mortgage |  | 13,752 |  |  | 3,496 |  |  | 5,606 |  |  | 22,854 |  |  | 969,563 |  |  | 992,417 |
Other consumer |  | 199 |  |  | 40 |  |  | 95 |  |  | 334 |  |  | 51,532 |  |  | 51,866 |
Total traditional loans |  | 15,317 |  |  | 10,048 |  |  | 11,715 |  |  | 37,080 |  |  | 5,314,149 |  |  | 5,351,229 |
Total |  | $ | 19,290 |  |  | $ | 13,583 |  |  | $ | 24,734 |  |  | $ | 57,607 |  |  | $ | 5,894,278 |  |  | $ | 5,951,885 |
Non-accrual Loans The following table presents non-accrual loans as of the dates indicated:
| March 31, 2020 |  | December 31, 2019
($ in thousands) | NTM Loans |  | Traditional Loans |  | Total Non-accrual Loans |  | Non-accrual Loans with no ACL |  | NTM Loans |  | Traditional Loans |  | Total Non-accrual Loans |  | Non-accrual Loans with no ACL
Non-accrual loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial | $ | — |  |  | $ | 23,638 |  |  | $ | 23,638 |  |  | $ | 5,364 |  |  | $ | — |  |  | $ | 19,114 |  |  | $ | 19,114 |  |  | $ | 337 |
Commercial real estate | — |  |  | 2,763 |  |  | 2,763 |  |  | 2,763 |  |  | — |  |  | — |  |  | — |  |  | — |
SBA | — |  |  | 5,374 |  |  | 5,374 |  |  | 1,508 |  |  | — |  |  | 5,230 |  |  | 5,230 |  |  | 1,474 |
Construction | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Single family residential mortgage | 15,605 |  |  | 8,771 |  |  | 24,376 |  |  | 24,376 |  |  | 13,019 |  |  | 5,606 |  |  | 18,625 |  |  | 14,373 |
Other consumer | — |  |  | 320 |  |  | 320 |  |  | 320 |  |  | — |  |  | 385 |  |  | 385 |  |  | 380 |
Total non-accrual loans | $ | 15,605 |  |  | $ | 40,866 |  |  | $ | 56,471 |  |  | $ | 34,331 |  |  | $ | 13,019 |  |  | $ | 30,335 |  |  | $ | 43,354 |  |  | $ | 16,564 |
At March 31, 2020 and December 31, 2019, there were no loans were past due 90 days or more and still accruing. The non-traditional mortgage ("NTM") loans on non-accrual status included $4.7 million of Green loans and $10.9 million of interest-only loans at March 31, 2020 compared to $1.5 million of Green loans and $11.5 million of interest-only loans at December 31, 2019. Loans in Process of Foreclosure At March 31, 2020 and December 31, 2019, consumer mortgage loans of $15.7 million and $15.7 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. Allowance for Credit Losses Our ACL is comprised of our allowance for loan losses (ALL) and reserve for unfunded loan commitments. Our ACL and resulting provision was significantly impacted by the current economic uncertainty and volatility caused by the COVID-19 pandemic. Our ACL methodology uses a nationally-recognized, third party model that includes many assumptions based on our historical and peer loss data, our current loan portfolio risk profile, and economic forecasts. Loan-level data and credit-risk attributes are incorporated into the model and adjusted based on a peer-multiplier and economic forecasts. The forecasts are based on critical macroeconomic variables with relevant ranges of one to three years which then revert to long-term trends over the life of the loan. We utilized economic forecasts published by our model provider to determine the ACL on January 1, 2020. Subsequent to adoption, we used economic forecasts released by our model provider during the last week of March which included the onset of the pandemic. These latter forecasts included a sharp contraction in annualized GDP growth and a sharp spike in near-term unemployment rates ranging from 8% to 13%, before returning to moderate long-term economic trends. Our visibility at the end of the quarter indicated that local unemployment was heading higher and that the economic recovery would likely be slower. Accordingly, we incorporated qualitative factors to account for this visibility at quarter end related to actual conditions and an economic outlook that was worse than the late March forecasts incorporated into the CECL model. As a result of the COVID-19 pandemic and adoption of CECL, we expect our allowance for credit losses to continue to be impacted in future periods by economic volatility, changing economic forecasts, as well as the related impacts to CECL model assumptions, all of which may be better than or worse than our current estimate. We have established credit risk management processes that include regular management review of the loan portfolio to identify problem loans. During the ordinary course of business, management may become aware of borrowers who may not be able to fulfill the contractual payment requirements of the loan agreements. Such loans are subject to increased monitoring. Consideration is given to placing the loan on non-accrual status, assessing the need for additional allowance for loan loss, and partial or full charge off the principal balance. We maintain the allowance for loan losses at a level that is considered adequate to cover the expected credit losses in the loan portfolio. We maintain a reserve for unfunded loan commitments at a level that is considered adequate to cover expected credit losses for the portion of commitments that ultimately fund. The estimated funding of the loan commitments and credit risk factors are determined based on outstanding loans that share similar credit risk exposure are used to determine the adequacy of the reserve. At March 31, 2020 and December 31, 2019, the reserve for unfunded loan commitments was $3.9 million and $4.1 million, respectively, and are included in accrued expenses and other liabilities on the consolidated statements of financial condition. The credit risk monitoring system is designed to identify impaired and potential problem loans, and to perform periodic evaluation of impairment and the adequacy of the allowance for credit losses in a timely manner. In addition, management has adopted a credit policy that includes a credit review and control system that it believes should be effective in ensuring that we maintain an adequate allowance for credit losses. In addition, the Board of Directors provides oversight and guidance for management’s allowance evaluation process. The following table presents a summary of activity in the ACL for the periods indicated:
|  | Three Months Ended March 31,
($ in thousands) |  | 2020 |  | 2019
|  | Allowance for Loan Losses |  | Reserve for Unfunded Loan Commitments |  | Allowance for Credit Losses |  | Allowance for Loan Losses |  | Reserve for Unfunded Loan Commitments |  | Allowance for Credit Losses
Balance at beginning of period |  | $ | 57,649 |  |  | $ | 4,064 |  |  | $ | 61,713 |  |  | $ | 62,192 |  |  | $ | 4,622 |  |  | $ | 66,814 |
Impact of adopting ASU 2016-13 |  | 7,609 |  |  | (1,226 | ) |  | 6,383 |  |  | — |  |  | — |  |  | — |
Loans charged off |  | (2,076 | ) |  | — |  |  | (2,076 | ) |  | (1,063 | ) |  | — |  |  | (1,063 | )
Recoveries of loans previously charged off |  | 350 |  |  | — |  |  | 350 |  |  | 244 |  |  | — |  |  | 244 |
Net charge-offs |  | (1,726 | ) |  | — |  |  | (1,726 | ) |  | (819 | ) |  | — |  |  | (819 | )
Provision for (reversal of) credit losses |  | 14,711 |  |  | 1,050 |  |  | 15,761 |  |  | 2,512 |  |  | (414 | ) |  | 2,098 |
Balance at end of period |  | $ | 78,243 |  |  | $ | 3,888 |  |  | $ | 82,131 |  |  | $ | 63,885 |  |  | $ | 4,208 |  |  | $ | 68,093 |
The following table presents the activity and balance in the ALL and the recorded investment, excluding accrued interest, in loans based on the impairment methodology as of or for the three months ended March 31, 2020:
($ in thousands) |  | Commercial and Industrial |  | Commercial Real Estate |  | Multifamily |  | SBA |  | Construction |  | Single Family Residential Mortgage |  | Other Consumer |  | Total
ALL: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at December 31, 2019 |  | $ | 22,353 |  |  | $ | 5,941 |  |  | $ | 11,405 |  |  | $ | 3,120 |  |  | $ | 3,906 |  |  | $ | 10,486 |  |  | $ | 438 |  |  | $ | 57,649 |
Impact of adopting ASC 326 |  | 662 |  |  | 4,847 |  |  | 1,809 |  |  | 388 |  |  | 103 |  |  | (420 | ) |  | 220 |  |  | 7,609 |
Charge-offs |  | (1,164 | ) |  | — |  |  | — |  |  | (356 | ) |  | — |  |  | (552 | ) |  | (4 | ) |  | (2,076 | )
Recoveries |  | 30 |  |  | — |  |  | — |  |  | 121 |  |  | — |  |  | 151 |  |  | 48 |  |  | 350 |
Net (charge-offs) recoveries |  | (1,134 | ) |  | — |  |  | — |  |  | (235 | ) |  | — |  |  | (401 | ) |  | 44 |  |  | (1,726 | )
Provision for (reversal of) credit losses |  | 1,692 |  |  | 2,832 |  |  | 6,858 |  |  | 379 |  |  | 3,043 |  |  | (72 | ) |  | (21 | ) |  | 14,711 |
Balance at March 31, 2020 |  | $ | 23,573 |  |  | $ | 13,620 |  |  | $ | 20,072 |  |  | $ | 3,652 |  |  | $ | 7,052 |  |  | $ | 9,593 |  |  | $ | 681 |  |  | $ | 78,243 |
Individually evaluated for impairment |  | $ | 3,606 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,208 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 5,814 |
Collectively evaluated for impairment |  | 19,967 |  |  | 13,620 |  |  | 20,072 |  |  | 1,444 |  |  | 7,052 |  |  | 9,593 |  |  | 681 |  |  | 72,429 |
Total ending ALL balance |  | $ | 23,573 |  |  | $ | 13,620 |  |  | $ | 20,072 |  |  | $ | 3,652 |  |  | $ | 7,052 |  |  | $ | 9,593 |  |  | $ | 681 |  |  | $ | 78,243 |
Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | $ | 24,594 |  |  | $ | 2,763 |  |  | $ | — |  |  | $ | 5,292 |  |  | $ | — |  |  | $ | 29,183 |  |  | $ | 614 |  |  | $ | 62,446 |
Collectively evaluated for impairment |  | 1,553,629 |  |  | 807,261 |  |  | 1,466,083 |  |  | 65,291 |  |  | 227,947 |  |  | 1,438,192 |  |  | 46,615 |  |  | 5,605,018 |
Total ending loan balances |  | $ | 1,578,223 |  |  | $ | 810,024 |  |  | $ | 1,466,083 |  |  | $ | 70,583 |  |  | $ | 227,947 |  |  | $ | 1,467,375 |  |  | $ | 47,229 |  |  | $ | 5,667,464 |
The following table presents the activity and balance in the ALL and the recorded investment, excluding accrued interest, in loans based on the impairment methodology as of or for the three months ended March 31, 2019:
($ in thousands) |  | Commercial and Industrial |  | Commercial Real Estate |  | Multifamily |  | SBA |  | Construction |  | Lease Financing |  | Single Family Residential Mortgage |  | Other Consumer |  | Total
ALL: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at December 31, 2018 |  | $ | 18,191 |  |  | $ | 6,674 |  |  | $ | 17,970 |  |  | $ | 1,827 |  |  | $ | 3,461 |  |  | $ | — |  |  | $ | 13,128 |  |  | $ | 941 |  |  | $ | 62,192 |
Charge-offs |  | (93 | ) |  | — |  |  | — |  |  | (356 | ) |  | — |  |  | — |  |  | (526 | ) |  | (88 | ) |  | (1,063 | )
Recoveries |  | 33 |  |  | — |  |  | — |  |  | 41 |  |  | — |  |  | 3 |  |  | 150 |  |  | 17 |  |  | 244 |
Net (charge-offs) recoveries |  | (60 | ) |  | — |  |  | — |  |  | (315 | ) |  | — |  |  | 3 |  |  | (376 | ) |  | (71 | ) |  | (819 | )
Provision for (reversal of) credit losses |  | 762 |  |  | 164 |  |  | 928 |  |  | 1,545 |  |  | (8 | ) |  | (3 | ) |  | (610 | ) |  | (266 | ) |  | 2,512 |
Balance at March 31, 2019 |  | $ | 18,893 |  |  | $ | 6,838 |  |  | $ | 18,898 |  |  | $ | 3,057 |  |  | $ | 3,453 |  |  | $ | — |  |  | $ | 12,142 |  |  | $ | 604 |  |  | $ | 63,885 |
Individually evaluated for impairment |  | $ | 48 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,634 |  |  | $ | — |  |  | $ | — |  |  | $ | 230 |  |  | $ | 33 |  |  | $ | 1,945 |
Collectively evaluated for impairment |  | 18,845 |  |  | 6,838 |  |  | 18,898 |  |  | 1,423 |  |  | 3,453 |  |  | — |  |  | 11,912 |  |  | 571 |  |  | 61,940 |
Total ending ALL balance |  | $ | 18,893 |  |  | $ | 6,838 |  |  | $ | 18,898 |  |  | $ | 3,057 |  |  | $ | 3,453 |  |  | $ | — |  |  | $ | 12,142 |  |  | $ | 604 |  |  | $ | 63,885 |
Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | $ | 4,861 |  |  | $ | 573 |  |  | $ | — |  |  | $ | 3,808 |  |  | $ | 2,519 |  |  | $ | — |  |  | $ | 20,362 |  |  | $ | 841 |  |  | $ | 32,964 |
Collectively evaluated for impairment |  | 1,902,241 |  |  | 864,948 |  |  | 2,332,527 |  |  | 71,190 |  |  | 209,030 |  |  | — |  |  | 2,082,332 |  |  | 61,968 |  |  | 7,524,236 |
Total ending loan balances |  | $ | 1,907,102 |  |  | $ | 865,521 |  |  | $ | 2,332,527 |  |  | $ | 74,998 |  |  | $ | 211,549 |  |  | $ | — |  |  | $ | 2,102,694 |  |  | $ | 62,809 |  |  | $ | 7,557,200 |
The following table presents loans individually evaluated for impairment by class of loans 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 net of any deferred fees and costs and any purchase premium or discount.
|  | March 31, 2020 |  | December 31, 2019
($ in thousands) |  | Unpaid Principal Balance |  | Recorded Investment |  | Allowance for Loan Losses |  | Unpaid Principal Balance |  | Recorded Investment |  | Allowance for Loan Losses
With no related ALL recorded: |  |  |  |  |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 6,332 |  |  | $ | 6,319 |  |  | $ | — |  |  | $ | 1,471 |  |  | $ | 1,460 |  |  | $ | — |
Commercial real estate |  | 2,968 |  |  | 2,763 |  |  | — |  |  | — |  |  | — |  |  | — |
SBA |  | 1,489 |  |  | 1,426 |  |  | — |  |  | 1,439 |  |  | 1,379 |  |  | — |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |
Single family residential mortgage |  | 29,024 |  |  | 29,183 |  |  | — |  |  | 19,319 |  |  | 19,405 |  |  | — |
Other consumer |  | 611 |  |  | 614 |  |  | — |  |  | 671 |  |  | 675 |  |  | — |
With an ALL recorded: |  |  |  |  |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | 18,268 |  |  | 18,275 |  |  | 3,606 |  |  | 18,776 |  |  | 18,776 |  |  | 3,367 |
SBA |  | 4,050 |  |  | 3,866 |  |  | 2,208 |  |  | 3,921 |  |  | 3,757 |  |  | 2,045 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |
Single family residential mortgage |  | — |  |  | — |  |  | — |  |  | 4,213 |  |  | 4,252 |  |  | 574 |
Other consumer |  | — |  |  | — |  |  | — |  |  | 4 |  |  | 4 |  |  | 4 |
Total |  | $ | 62,742 |  |  | $ | 62,446 |  |  | $ | 5,814 |  |  | $ | 49,814 |  |  | $ | 49,708 |  |  | $ | 5,990 |
The following table presents information on impaired loans, disaggregated by class, for the periods indicated:
|  | Three Months Ended
($ in thousands) |  | Average Recorded Investment |  | Interest Income Recognized |  | Cash Basis Interest Recognized
March 31, 2020 |  |  |  |  |  |
Commercial: |  |  |  |  |  |
Commercial and industrial |  | $ | 22,912 |  |  | $ | 21 |  |  | $ | 21 |
Commercial real estate |  | 2,774 |  |  | — |  |  | — |
SBA |  | 5,414 |  |  | 3 |  |  | 3 |
Consumer: |  |  |  |  |  |
Single family residential mortgage |  | 29,483 |  |  | 54 |  |  | 45 |
Other consumer |  | 617 |  |  | 3 |  |  | 3 |
Total |  | $ | 61,200 |  |  | $ | 81 |  |  | $ | 72 |
March 31, 2019 |  |  |  |  |  |
Commercial: |  |  |  |  |  |
Commercial and industrial |  | $ | 5,048 |  |  | $ | — |  |  | $ | — |
Commercial real estate |  | 577 |  |  | — |  |  | — |
SBA |  | 3,845 |  |  | 4 |  |  | 4 |
Construction |  | 2,519 |  |  | — |  |  | — |
Consumer: |  |  |  |  |  |
Single family residential mortgage |  | 19,323 |  |  | 58 |  |  | 49 |
Other consumer |  | 844 |  |  | 3 |  |  | 3 |
Total |  | $ | 32,156 |  |  | $ | 65 |  |  | $ | 56 |
Troubled Debt Restructurings A modification of a loan constitutes a TDR when we, for economic or legal reasons related to a borrower’s financial difficulties, grant a concession to the borrower that we would not otherwise consider. A concession or concessions may be granted in various forms, including a below-market change in the stated interest rate, a reduction in the loan balance or accrued interest, an extension of the maturity date, or a note split with principal forgiveness. 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 our internal underwriting policy. TDR loans consisted of the following as of the dates indicated:
|  | March 31, 2020 |  | December 31, 2019
($ in thousands) |  | NTM Loans |  | Traditional Loans |  | Total |  | NTM Loans |  | Traditional Loans |  | Total
Commercial: |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | — |  |  | $ | 21,586 |  |  | $ | 21,586 |  |  | $ | — |  |  | $ | 16,245 |  |  | $ | 16,245 |
SBA |  | — |  |  | 266 |  |  | 266 |  |  | — |  |  | 266 |  |  | 266 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |
Single family residential mortgage |  | 2,630 |  |  | 2,176 |  |  | 4,806 |  |  | 2,638 |  |  | 2,394 |  |  | 5,032 |
Other consumer |  | 294 |  |  | — |  |  | 294 |  |  | 294 |  |  | — |  |  | 294 |
Total |  | $ | 2,924 |  |  | $ | 24,028 |  |  | $ | 26,952 |  |  | $ | 2,932 |  |  | $ | 18,905 |  |  | $ | 21,837 |
We had commitments to lend to customers with outstanding loans that were classified as TDRs of $135 thousand and $135 thousand as of March 31, 2020 and December 31, 2019, respectively. Accruing TDRs were $6.1 million and non-accrual TDRs were $20.9 million at March 31, 2020 compared to accruing TDRs of $6.6 million and non-accrual TDRs of $15.2 million at December 31, 2019. The increase in TDRs during the three months ended March 31, 2020 was primarily due to one commercial and industrial relationship. The following table summarizes the pre-modification and post-modification balances of the new TDRs for the periods indicated:
|  | Three Months Ended
($ in thousands) |  | Number of Loans |  | Pre-Modification Outstanding Recorded Investment |  | Post-Modification Outstanding Recorded Investment
March 31, 2020 |  |  |  |  |  |
Commercial: |  |  |  |  |  |
Commercial and industrial |  | 1 |  |  | $ | 5,000 |  |  | $ | 5,000 |
Total |  | 1 |  |  | 5,000 |  |  | 5,000 |
March 31, 2019 |  |  |  |  |  |
Total |  | — |  |  | $ | — |  |  | $ | — |
We consider a TDR to be in payment default once it becomes 30 days or more past due following a modification. During the three months ended March 31, 2020 and 2019, there were no loans that were modified as TDRs during the past 12 months that had subsequent payment defaults during the periods. The following table summarizes TDRs by modification type for the periods indicated:
|  | Three Months Ended
|  | Modification Type
|  | Change in Principal Payments and Interest Rates |  | Change in Principal Payments |  | Total
($ in thousands) |  | Count |  | Amount |  | Count |  | Amount |  | Count |  | Amount
March 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | 1 |  |  | $ | 5,000 |  |  | — |  |  | $ | — |  |  | 1 |  |  | $ | 5,000 |
Total |  | 1 |  |  | $ | 5,000 |  |  | — |  |  | $ | — |  |  | 1 |  |  | $ | 5,000 |
March 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |
Total |  | — |  |  | $ | — |  |  | — |  |  | $ | — |  |  | — |  |  | $ | — |
Purchases, Sales, and Transfers From time to time, we purchase and sell loans in the secondary market. Certain loans are transferred from held-for-investment to held-for-sale at the lower of cost or fair value and any reductions in value on transfer are reflected as write-downs to allowance for credit losses. We had no purchases of loans for the three months ended March 31, 2020 and 2019. The following table presents loans transferred from (to) loans held-for-sale by portfolio segment for the periods indicated:
|  | Three Months Ended
($ in thousands) |  | Transfers from Held-For-Sale |  | Transfers (to) Held-For-Sale
March 31, 2020 |  |  |  |
Total |  | $ | — |  |  | $ | — |
March 31, 2019 |  |  |  |
Commercial: |  |  |  |
Commercial and industrial |  | $ | — |  |  | $ | — |
Multifamily |  | — |  |  | — |
Consumer: |  |  |  |
Single family residential mortgage |  | — |  |  | (243,364 | )
Other consumer |  | — |  |  | — |
Total |  | $ | — |  |  | $ | (243,364 | )
There were no sales of loans during the three months ended March 31, 2020. Loss on sale of loans during the three months ended totaled $27 thousand and related to certain adjustments for previously sold loans. During the three months ended March 31, 2019, we sold $243.4 million in SFR loans, resulting in a gain of $1.6 million. Non-Traditional Mortgage Loans ("NTM") Our NTM portfolio is comprised of three interest only products: Green Loans, Interest Only loans and a small number of additional loans with the potential for negative amortization. The initial credit guidelines for the NTM portfolio were established based on the borrower's Fair Isaac Corporation (FICO) score, LTV ratio, property type, occupancy type, loan amount, and geography. Additionally, from an ongoing credit risk management perspective, we have determined that the most significant performance indicators for NTMs are LTV ratios and FICO scores. We review the NTM loan portfolio periodically, which includes refreshing FICO scores on the Green Loans and HELOCs and ordering third party automated valuation models (AVMs) to confirm collateral values. We no longer originate NTM loans. The following table presents the composition of the NTM portfolio, which are included in the single family residential mortgage portfolio, as of the dates indicated:
|  | March 31, 2020 |  | December 31, 2019
($ in thousands) |  | Count |  | Amount |  | Percent |  | Count |  | Amount |  | Percent
Consumer: |  |  |  |  |  |  |  |  |  |  |  |
Single family residential mortgage: |  |  |  |  |  |  |  |  |  |  |  |
Green Loans (HELOC) - first liens |  | 65 |  |  | $ | 45,913 |  |  | 8.2 | % |  | 69 |  |  | $ | 49,959 |  |  | 8.3 | %
Interest-only - first liens |  | 349 |  |  | 509,892 |  |  | 91.0 | % |  | 376 |  |  | 545,371 |  |  | 90.8 | %
Negative amortization |  | 8 |  |  | 2,359 |  |  | 0.4 | % |  | 9 |  |  | 3,027 |  |  | 0.5 | %
Total NTM - first liens |  | 422 |  |  | 558,164 |  |  | 99.7 | % |  | 454 |  |  | 598,357 |  |  | 99.6 | %
Other consumer: |  |  |  |  |  |  |  |  |  |  |  |
Green Loans (HELOC) - second liens |  | 6 |  |  | 1,894 |  |  | 0.3 | % |  | 7 |  |  | 2,299 |  |  | 0.4 | %
Total NTM - second liens |  | 6 |  |  | 1,894 |  |  | 0.3 | % |  | 7 |  |  | 2,299 |  |  | 0.4 | %
Total NTM loans |  | 428 |  |  | $ | 560,058 |  |  | 100.0 | % |  | 461 |  |  | $ | 600,656 |  |  | 100.0 | %
Total loans receivable |  |  |  | $ | 5,667,464 |  |  |  |  |  |  | $ | 5,951,885 |  |  |
% of total NTM loans to total loans receivable |  |  |  | 9.9 | % |  |  |  |  |  | 10.1 | % |  |
The NTM loans on non-accrual status included $4.7 million of Green loans and $10.9 million of interest-only loans at March 31, 2020 compared to $1.5 million of Green loans and $11.5 million of interest only loans at December 31, 2019.

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