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LOANS AND ALLOWANCE FOR CREDIT LOSSES

9 Months Ended

Sep. 30, 2021

The following table presents the balances in our loan portfolio as of the dates indicated:


($ in thousands)	September 30, 2021		December 31, 2020

Commercial:
Commercial and industrial(1)	$	2,296,626	$	2,088,308
Commercial real estate	907,224		807,195
Multifamily	1,295,613		1,289,820
SBA(2)	181,582		273,444
Construction	130,536		176,016

Consumer:
Single family residential mortgage	1,393,696		1,230,236


Other consumer	23,298		33,386
Total loans(3)	$	6,228,575	$	5,898,405

Allowance for loan losses	(73,524)		(81,030)
Loans receivable, net	$	6,155,051	$	5,817,375

(1)Includes warehouse lending balances of $1.52 billion and $1.34 billion at September 30, 2021 and December 31, 2020.

(2)Includes 566 PPP loans totaling $116.5 million, net of unamortized loan fees totaling $2.0 million at September 30, 2021 and 949 PPP loans totaling $210.0 million, net of unamortized loan fees totaling $1.6 million at December 31, 2020.

(3)Includes net deferred loan origination costs (fees) and premiums (discounts) of $12.5 million and $6.2 million at September 30, 2021 and December 31, 2020.

Credit Quality Indicators

We categorize loans into risk categories based on relevant information about the ability of borrowers to repay 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 and grade each loan for 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 credit risk ratings:

Pass: Loans risk rated 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 risk rated as special mention have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loans or of our credit position at some future date.

Substandard: Loans risk rated 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 risk rated have well-defined weaknesses 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 September 30, 2021:


	Term Loans Amortized Cost Basis by Origination Year
($ in thousands)	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Amortized Cost Basis Converted to Term		Total
September 30, 2021
















Commercial:
Commercial and industrial
Pass	$	146,752	$	70,137	$	64,881	$	61,184	$	45,261	$	99,395	$	1,712,167	$	10,548	$	2,210,325
Special mention	—		3,242		13,803		3,617		11,976		8,690		14,498		7,135		62,961
Substandard	—		—		3,076		4,969		—		9,641		3,194		2,460		23,340
Doubtful	—		—		—		—		—		—		—		—		—
Commercial and industrial	146,752		73,379		81,760		69,770		57,237		117,726		1,729,859		20,143		2,296,626
Commercial real estate
Pass	255,677		57,232		132,886		161,355		54,060		213,050		2,108		73		876,441
Special mention	—		—		—		1,934		—		10,999		3,762		—		16,695
Substandard	—		—		508		—		—		13,580		—		—		14,088
Doubtful	—		—		—		—		—		—		—		—		—
Commercial real estate	255,677		57,232		133,394		163,289		54,060		237,629		5,870		73		907,224
Multifamily
Pass	280,570		209,591		295,012		218,476		78,659		148,610		107		—		1,231,025
Special mention	—		2,004		15,397		11,308		—		33,949		—		—		62,658
Substandard	—		—		—		—		—		1,930		—		—		1,930
Doubtful	—		—		—		—		—		—		—		—		—
Multifamily	280,570		211,595		310,409		229,784		78,659		184,489		107		—		1,295,613
SBA
Pass	101,405		30,143		7,555		249		3,508		19,750		358		303		163,271
Special mention	—		—		1,731		900		—		1,181		255		4		4,071
Substandard	—		—		—		390		3,631		7,017		247		918		12,203
Doubtful	—		—		—		—		—		1,777		—		260		2,037
SBA	101,405		30,143		9,286		1,539		7,139		29,725		860		1,485		181,582


Construction
Pass	24,867		30,494		19,184		16,694		29,622		—		—		—		120,861
Special mention	—		—		—		1,537		—		8,138		—		—		9,675
Substandard	—		—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—		—
Construction	24,867		30,494		19,184		18,231		29,622		8,138		—		—		130,536
Consumer:
Single family residential mortgage
Pass	550,466		125,669		79,395		162,821		103,351		328,357		12,557		—		1,362,616
Special mention	—		—		—		1,255		696		6,831		—		—		8,782
Substandard	—		—		—		6,403		1,707		13,949		239		—		22,298
Doubtful	—		—		—		—		—		—		—		—		—
Single family residential mortgage	550,466		125,669		79,395		170,479		105,754		349,137		12,796		—		1,393,696
Other consumer
Pass	1,110		—		—		8		—		1,753		18,022		2,221		23,114
Special mention	—		—		—		—		—		27		60		—		87
Substandard	—		—		—		—		—		—		97		—		97
Doubtful	—		—		—		—		—		—		—		—		—
Other consumer	1,110		—		—		8		—		1,780		18,179		2,221		23,298


Total loans	$	1,360,847	$	528,512	$	633,428	$	653,100	$	332,471	$	928,624	$	1,767,671	$	23,922	$	6,228,575

Total loans
Pass	$	1,360,847	$	523,266	$	598,913	$	620,787	$	314,461	$	810,915	$	1,745,319	$	13,145	$	5,987,653
Special mention	—		5,246		30,931		20,551		12,672		69,815		18,575		7,139		164,929
Substandard	—		—		3,584		11,762		5,338		46,117		3,777		3,378		73,956
Doubtful	—		—		—		—		—		1,777		—		260		2,037
Total loans	$	1,360,847	$	528,512	$	633,428	$	653,100	$	332,471	$	928,624	$	1,767,671	$	23,922	$	6,228,575

The following table presents the risk categories for total loans by class of loans and origination year as of December 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
December 31, 2020
















Commercial:
Commercial and industrial
Pass	$	99,015	$	78,783	$	70,248	$	52,786	$	44,536	$	92,129	$	1,572,259	$	9,945	$	2,019,701
Special mention	—		928		2,748		7,986		1,574		2,271		1,500		225		17,232
Substandard	—		13,937		6,262		4,618		—		9,264		12,598		4,696		51,375
Doubtful	—		—		—		—		—		—		—		—		—
Commercial and industrial	99,015		93,648		79,258		65,390		46,110		103,664		1,586,357		14,866		2,088,308
Commercial real estate
Pass	75,432		150,731		192,831		63,144		91,454		182,756		2,682		1,582		760,612
Special mention	—		—		9,452		—		2,518		14,754		3,761		—		30,485
Substandard	—		—		—		—		—		16,098		—		—		16,098
Doubtful	—		—		—		—		—		—		—		—		—
Commercial real estate	75,432		150,731		202,283		63,144		93,972		213,608		6,443		1,582		807,195
Multifamily
Pass	239,449		407,532		275,881		110,105		97,160		154,841		27		—		1,284,995
Special mention	—		2,050		—		—		—		803		—		—		2,853
Substandard	—		—		—		—		—		1,972		—		—		1,972
Doubtful	—		—		—		—		—		—		—		—		—
Multifamily	239,449		409,582		275,881		110,105		97,160		157,616		27		—		1,289,820
SBA
Pass	211,962		14,082		1,260		3,746		11,087		18,589		3,111		1,014		264,851
Special mention	—		1,768		—		212		415		874		—		6		3,275
Substandard	—		—		—		1,319		682		1,855		226		755		4,837
Doubtful	—		—		390		—		—		—		—		91		481
SBA	211,962		15,850		1,650		5,277		12,184		21,318		3,337		1,866		273,444


Construction
Pass	41,677		30,387		45,397		50,024		—		—		—		—		167,485
Special mention	—		—		1,537		—		6,994		—		—		—		8,531
Substandard	—		—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—		—
Construction	41,677		30,387		46,934		50,024		6,994		—		—		—		176,016
Consumer:
Single family residential mortgage
Pass	149,382		140,129		271,667		161,332		237,285		227,711		15,252		—		1,202,758
Special mention	—		—		1,837		688		4,868		4,460		—		—		11,853
Substandard	—		157		491		1,079		4,978		8,920		—		—		15,625
Doubtful	—		—		—		—		—		—		—		—		—
Single family residential mortgage	149,382		140,286		273,995		163,099		247,131		241,091		15,252		—		1,230,236
Other consumer
Pass	38		—		47		—		—		1,876		27,644		2,218		31,823
Special mention	—		—		—		—		—		30		1,185		—		1,215
Substandard	—		—		—		—		—		—		274		74		348
Doubtful	—		—		—		—		—		—		—		—		—
Other consumer	38		—		47		—		—		1,906		29,103		2,292		33,386


Total loans	$	816,955	$	840,484	$	880,048	$	457,039	$	503,551	$	739,203	$	1,640,519	$	20,606	$	5,898,405

Total loans
Pass	$	816,955	$	821,644	$	857,331	$	441,137	$	481,522	$	677,902	$	1,620,975	$	14,759	$	5,732,225
Special mention	—		4,746		15,574		8,886		16,369		23,192		6,446		231		75,444
Substandard	—		14,094		6,753		7,016		5,660		38,109		13,098		5,525		90,255
Doubtful	—		—		390		—		—		—		—		91		481
Total loans	$	816,955	$	840,484	$	880,048	$	457,039	$	503,551	$	739,203	$	1,640,519	$	20,606	$	5,898,405

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
September 30, 2021
Non-Traditional Mortgage (NTM) loans:
Single family residential mortgage	$	7,098	$	—	$	2,407	$	9,505	$	560,276	$	569,781


Other consumer	—		—		—		—		1,597		1,597
Total NTM loans	7,098		—		2,407		9,505		561,873		571,378
Traditional loans:
Commercial:
Commercial and industrial	3,624		3,796		2,876		10,296		2,286,330		2,296,626
Commercial real estate	—		—		—		—		907,224		907,224
Multifamily	791		—		—		791		1,294,822		1,295,613
SBA	2,545		—		12,385		14,930		166,652		181,582
Construction	—		—		—		—		130,536		130,536

Consumer:
Single family residential mortgage	4,274		1,016		4,311		9,601		814,314		823,915
Other consumer	—		—		—		—		21,701		21,701
Total traditional loans	11,234		4,812		19,572		35,618		5,621,579		5,657,197









Total	$	18,332	$	4,812	$	21,979	$	45,123	$	6,183,452	$	6,228,575

December 31, 2020
NTM loans:
Single family residential mortgage	$	4,200	$	641	$	6,548	$	11,389	$	424,126	$	435,515


Other consumer	—		—		—		—		1,598		1,598
Total NTM loans	4,200		641		6,548		11,389		425,724		437,113
Traditional loans:
Commercial:
Commercial and industrial	67		—		4,284		4,351		2,083,957		2,088,308
Commercial real estate	—		—		—		—		807,195		807,195
Multifamily	—		—		—		—		1,289,820		1,289,820
SBA	354		626		3,062		4,042		269,402		273,444
Construction	—		—		—		—		176,016		176,016

Consumer:
Single family residential mortgage	6,836		980		3,742		11,558		783,163		794,721
Other consumer	216		61		—		277		31,511		31,788
Total traditional loans	7,473		1,667		11,088		20,228		5,441,064		5,461,292









Total	$	11,673	$	2,308	$	17,636	$	31,617	$	5,866,788	$	5,898,405

In accordance with regulatory guidance, borrowers that are on forbearance or deferment, that were current prior to becoming affected by the global pandemic should not be reported as past due.

Nonaccrual Loans

The following table presents nonaccrual loans as of the dates indicated:


	September 30, 2021								December 31, 2020
($ in thousands)	NTM Loans		Traditional Loans		Total Nonaccrual Loans		Nonaccrual Loans with no ACL		NTM Loans		Traditional Loans		Total Nonaccrual Loans		Nonaccrual Loans with no ACL
Nonaccrual loans
Commercial:
Commercial and industrial	$	—	$	11,834	$	11,834	$	11,834	$	—	$	13,821	$	13,821	$	13,088
Commercial real estate	—		4,419		4,419		4,419		—		4,654		4,654		4,654

SBA	—		12,824		12,824		5,204		—		3,749		3,749		648


Consumer:
Single family residential mortgage	6,644		9,900		16,544		14,015		8,697		4,822		13,519		13,519


Other consumer	—		—		—		—		—		157		157		157
Total nonaccrual loans	$	6,644	$	38,977	$	45,621	$	35,472	$	8,697	$	27,203	$	35,900	$	32,066

At September 30, 2021 and December 31, 2020, there were zero and $728 thousand of loans that were past due 90 days or more and still accruing.

The non-traditional mortgage (“NTM”) loans on nonaccrual status included $3.3 million of Green Loans and $3.3 million of Interest Only loans at September 30, 2021 compared to $4.0 million of Green Loans and $4.7 million of Interest Only loans at December 31, 2020.

Other Real Estate Owned, Net and Loans in Process of Foreclosure

At September 30, 2021 and December 31, 2020, there was no other real estate owned. During the three and nine months ended September 30, 2021, other real estate owned, consisting of one SFR property totaling $3.3 million, was sold at a gain of $365 thousand. During the three and nine months ended September 30, 2020, other real estate owned, consisting of one SFR property totaling $1.1 million, was sold at a loss of $38 thousand.

At September 30, 2021 and December 31, 2020, there was one and zero consumer mortgage loans secured by residential real estate properties totaling $2.5 million and zero for which formal foreclosure proceedings were in process according to local requirements of the applicable jurisdiction.

Allowance for Credit Losses

The ACL methodology uses a nationally recognized, third-party model that includes many assumptions based on historical and peer loss data, current loan portfolio risk profile including risk ratings, and economic forecasts including macroeconomic variables (MEVs) released by our model provider during September 2021. The September 2021 forecasts reflect a more favorable view of the economy (i.e. higher GDP growth rates and lower unemployment rates) compared to the June 2021 forecasts. While the current forecasts generally reflect an improving economy with the availability of the vaccine and other factors, there continues to be uncertainty regarding the impact of inflation (lasting or transitory), COVID-19 variants, further government stimulus, supply chain issues, and the ultimate pace of the recovery. Accordingly, our economic assumptions, the resulting ACL level and provision reversal consider both the positive assumptions and potential uncertainties. The ACL also incorporated qualitative factors to account for certain loan portfolio characteristics that are not taken into consideration by the third-party model including underlying strengths and weaknesses in various segments of the loan portfolio. As is the case with all estimates, the ACL is expected to be impacted in future periods by economic volatility, changing economic forecasts, underlying model assumptions, and asset quality metrics, all of which may be better than or worse than current estimates.

The ACL process involves subjective and complex judgments as well as adjustments for numerous factors including those described in the federal banking agencies' joint interagency policy statement on ALL, which include underwriting experience and collateral value changes, among others.

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 their contractual payment requirements within the loan agreements. Such loans are subject to increased monitoring. Consideration is given to placing these loans on nonaccrual status, assessing the need for additional allowance for loan loss, and partially or fully charging off the principal balance. We maintain the allowance for loan losses at a level that is considered adequate to cover the current expected credit losses in the loan portfolio.

The reserve for unfunded loan commitments is established to cover the current expected credit losses for the estimated level of funding of these loan commitments, except for unconditionally cancellable commitments for which no reserve is required under ASC 326. At September 30, 2021 and December 31, 2020, the reserve for unfunded loan commitments was $5.2 million and $3.2 million, respectively, and was 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, perform periodic evaluation of impairment, and determine 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. Further, 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 September 30,
($ in thousands)	2021						2020
	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	$	75,885	$	3,814	$	79,699	$	90,370	$	4,195	$	94,565

Loans charged off	(327)		—		(327)		(1,821)		—		(1,821)
Recoveries of loans previously charged off	532		—		532		248		—		248
Net recoveries (charge-offs)	205		—		205		(1,573)		—		(1,573)

(Reversal of) provision for credit losses	(2,566)		1,419		(1,147)		2,130		(989)		1,141
Balance at end of period	$	73,524	$	5,233	$	78,757	$	90,927	$	3,206	$	94,133


	Nine Months Ended September 30,
($ in thousands)	2021						2020
	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	$	81,030	$	3,183	$	84,213	$	57,649	$	4,064	$	61,713
Impact of adopting ASU 2016-13	—		—		—		7,609		(1,226)		6,383
Loans charged off	(1,778)		—		(1,778)		(3,897)		—		(3,897)
Recoveries of loans previously charged off	730		—		730		1,206		—		1,206
Net charge-offs	(1,048)		—		(1,048)		(2,691)		—		(2,691)

(Reversal of) provision for credit losses	(6,458)		2,050		(4,408)		28,360		368		28,728
Balance at end of period	$	73,524	$	5,233	$	78,757	$	90,927	$	3,206	$	94,133

Accrued interest receivable on loans receivable, net totaled $23.8 million and $24.7 million at September 30, 2021 and December 31, 2020, and is included within other assets in the accompanying consolidated statements of financial condition. Accrued interest receivable is excluded from the estimate of expected credit losses.

The following table presents the activity and balance in the ALL and the recorded investment, excluding accrued interest, in loans as of or for the three and nine months ended September 30, 2021:


($ in thousands)	Commercial and Industrial		Commercial Real Estate		Multifamily		SBA		Construction		Single Family Residential Mortgage		Other Consumer		Total
ALL:
Three Months Ended September 30, 2021:
Balance at June 30, 2021	$	20,156	$	16,424	$	21,403	$	3,696	$	4,734	$	9,108	$	364	$	75,885

Charge-offs	(115)		(138)		—		(74)		—		—		—		(327)
Recoveries	484		—		—		1		—		46		1		532
Net recoveries (charge-offs)	369		(138)		—		(73)		—		46		1		205

(Reversal of) provision for credit losses - loans	(270)		(269)		(2,678)		1,112		(616)		150		5		(2,566)
Balance at September 30, 2021	$	20,255	$	16,017	$	18,725	$	4,735	$	4,118	$	9,304	$	370	$	73,524

Nine Months Ended September 30, 2021:
Balance at December 31, 2020	$	20,608	$	19,074	$	22,512	$	3,145	$	5,849	$	9,191	$	651	$	81,030

Charge-offs	(1,180)		(138)		—		(460)		—		—		—		(1,778)
Recoveries	553		—		—		130		—		46		1		730
Net (charge-offs) recoveries	(627)		(138)		—		(330)		—		46		1		(1,048)

Provision for (reversal of) credit losses - loans	274		(2,919)		(3,787)		1,920		(1,731)		67		(282)		(6,458)
Balance at September 30, 2021	$	20,255	$	16,017	$	18,725	$	4,735	$	4,118	$	9,304	$	370	$	73,524

The following table presents the activity and balance in the ALL and the recorded investment, excluding accrued interest, in loans as of or for the three and nine months ended September 30, 2020:


($ in thousands)	Commercial and Industrial		Commercial Real Estate		Multifamily		SBA		Construction		Single Family Residential Mortgage		Other Consumer		Total
ALL:
Three Months Ended September 30, 2020:
Balance at June 30, 2020	$	26,618	$	17,372	$	25,105	$	4,184	$	6,675	$	9,665	$	751	$	90,370

Charge-offs	(1,597)		—		—		(224)		—		—		—		(1,821)
Recoveries	116		—		—		132		—		—		—		248
Net charge-offs	(1,481)		—		—		(92)		—		—		—		(1,573)

Provision for (reversal of) credit losses - loans	1,454		2,001		454		(535)		(470)		(689)		(85)		2,130
Balance at September 30, 2020	$	26,591	$	19,373	$	25,559	$	3,557	$	6,205	$	8,976	$	666	$	90,927

Nine Months Ended September 30, 2020:
Balance at December 31, 2019	$	22,353	$	5,941	$	11,405	$	3,120	$	3,906	$	10,486	$	438	$	57,649
Adoption of ASU No. 2016-13	662		4,847		1,809		388		103		(420)		220		7,609
Charge-offs	(2,761)		—		—		(580)		—		(552)		(4)		(3,897)
Recoveries	265		—		—		253		—		639		49		1,206
Net (charge-offs) recoveries	(2,496)		—		—		(327)		—		87		45		(2,691)

Provision for (reversal of) credit losses - loans	6,072		8,585		12,345		376		2,196		(1,177)		(37)		28,360
Balance at September 30, 2020	$	26,591	$	19,373	$	25,559	$	3,557	$	6,205	$	8,976	$	666	$	90,927

Collateral Dependent Loans

A loan is considered collateral dependent when the borrower is experiencing financial difficulty and repayment of the loan is expected to be provided substantially through the operation or sale of the collateral. Collateral dependent loans are evaluated individually and the ACL is determined based on the amount by which amortized costs exceed the estimated fair value of the collateral, adjusted for estimated selling costs.

Collateral dependent loans consisted of the following as of September 30, 2021 and December 31, 2020:


	September 30, 2021
	Real Estate
($ in thousands)	Commercial		Residential		Business Assets		Total
Commercial:
Commercial and industrial	5,121		—		4,424		9,545
Commercial real estate	2,529		1,890		—		4,419

SBA	70		4,241		8,466		12,777


Consumer:
Single family residential mortgage	—		22,192		—		22,192

Total loans	$	7,720	$	28,323	$	12,890	$	48,933


	December 31, 2020
	Real Estate
($ in thousands)	Commercial		Residential		Business Assets		Total
Commercial:
Commercial and industrial	5,492		—		4,965		10,457
Commercial real estate	2,644		2,010		—		4,654

SBA	349		497		2,750		3,596


Consumer:
Single family residential mortgage	—		17,820		—		17,820
Other consumer	—		157		—		157
Total loans	$	8,485	$	20,484	$	7,715	$	36,684

Troubled Debt Restructurings

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


	September 30, 2021						December 31, 2020
($ in thousands)	NTM Loans		Traditional Loans		Total		NTM Loans		Traditional Loans		Total
Commercial:
Commercial and industrial	$	—	$	2,289	$	2,289	$	—	$	3,884	$	3,884
SBA	—		264		264		—		265		265
Consumer:
Single family residential mortgage	3,432		2,216		5,648		2,631		2,217		4,848


Other consumer	—		—		—		—		—		—
Total	$	3,432	$	4,769	$	8,201	$	2,631	$	6,366	$	8,997

We had commitments to lend to customers with outstanding loans that were classified as TDRs of $63 thousand at both September 30, 2021 and December 31, 2020. Accruing TDRs were $5.8 million and nonaccrual TDRs were $2.4 million at September 30, 2021, compared to accruing TDRs of $4.7 million and nonaccrual TDRs of $4.3 million at December 31, 2020.

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



	Three Months Ended					Nine Months Ended
($ 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
September 30, 2021



Consumer:
Single family residential mortgage	—	$	—	$	—	1	1,800		1,800

Total	—	—		—		1	$	1,800	$	1,800
September 30, 2020
Commercial:
Commercial and industrial	—	$	—	$	—	1	$	5,000	$	5,000




Total	—	$	—	$	—	1	$	5,000	$	5,000

We consider a TDR to be in payment default once it becomes 30 days or more past due following a modification. During the three and nine months ended September 30, 2021 and 2020, there were no loans that were modified as a TDR during the past 12 months that had subsequent payment defaults.

The following table summarizes TDRs by modification type for the period indicated:


			Nine Months Ended
			Modification Type
	Extension of Maturity	Total
($ in thousands)			Count	Amount		Count	Amount
September 30, 2021



Consumer:
Single family residential mortgage			1	1,800		1	1,800
Total			1	$	1,800	1	$	1,800

September 30, 2020
Commercial:
Commercial and industrial			1	$	5,000	1	$	5,000



Total			1	$	5,000	1	$	5,000

Purchases, Sales, and Transfers

From time to time, we purchase and sell loans in the secondary market. During the three and nine months ended September 30, 2021, we purchased loans aggregating $249.4 million and $615.4 million. During the three and nine months ended September 30, 2020, we purchased loans aggregating $129.0 million and $154.9 million.

There were no loans transferred from (to) loans held-for-sale and there were no sales of loans for the three and nine months ended September 30, 2021 and 2020.

Non-Traditional Mortgage Loans (“NTM”)

Our NTM portfolio includes three types of interest-only loans: Green Loans, Interest Only loans and a small number of 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 by 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, however, loans may be purchased which meet the criteria to be considered 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:


	September 30, 2021						December 31, 2020
($ in thousands)	Count	Amount			Percent		Count	Amount			Percent
Consumer:
Single family residential mortgage:
Green Loans (HELOC) - first liens	36	$	25,074		4.4	%	48	$	31,587		7.2	%
Interest Only - first liens	337	543,243			95.1	%	283	401,640			91.9	%
Negative amortization	4	1,464			0.3	%	8	2,288			0.5	%
Total NTM - first liens	377	569,781			99.7	%	339	435,515			99.6	%
Other consumer:
Green Loans (HELOC) - second liens	5	1,597			0.3	%	5	1,598			0.4	%

Total NTM - second liens	5	1,597			0.3	%	5	1,598			0.4	%
Total NTM loans	382	$	571,378		100.0	%	344	$	437,113		100.0	%
Total loans receivable		$	6,228,575					$	5,898,405
% of total NTM loans to total loans receivable		9.2		%				7.4		%