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LOANS AND ALLOWANCE FOR CREDIT LOSSES | 12 Months Ended
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Dec. 31, 2021
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:
|  | December 31,
($ in thousands) |  | 2021 |  | 2020
Commercial: |  |  |  |
Commercial and industrial (1) |  | $ | 2,668,984 |  |  | $ | 2,088,308 |
Commercial real estate |  | 1,311,105 |  |  | 807,195 |
Multifamily |  | 1,361,054 |  |  | 1,289,820 |
SBA (2) |  | 205,548 |  |  | 273,444 |
Construction |  | 181,841 |  |  | 176,016 |
Consumer: |  |  |  |
Single family residential mortgage |  | 1,420,023 |  |  | 1,230,236 |
Other consumer |  | 102,925 |  |  | 33,386 |
Total loans |  | 7,251,480 |  |  | 5,898,405 |
Allowance for loan losses |  | (92,584) |  |  | (81,030) |
Loans receivable, net |  | $ | 7,158,896 |  |  | $ | 5,817,375 |
(1)Includes warehouse lending balances of $1.60 billion and $1.34 billion at December 31, 2021 and 2020. (2)Includes 397 PPP loans totaling $123.1 million at December 31, 2021 and 949 PPP loans totaling $210.0 million at December 31, 2020. The following table presents the balances of total loans as of the dates indicated:
|  | December 31,
($ in thousands) |  | 2021 |  | 2020
Unpaid principal balance |  | $ | 7,245,952 |  |  | $ | 5,892,229 |
Unamortized net premiums |  | 18,005 |  |  | 6,535 |
Unamortized net deferred costs |  | 819 |  |  | 5,331 |
Unamortized SBA PPP fees |  | (831) |  |  | (1,739) |
Fair value adjustment (1) |  | (12,465) |  |  | (3,951) |
Total loans |  | $ | 7,251,480 |  |  | $ | 5,898,405 |
(1)Includes $10.6 million at December 31, 2021 related to the PMB Acquisition, of which $3.9 million related to PCD loans. 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 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 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 the institution 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. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. The following table presents the risk categories for total loans by class of loans and origination year as of December 31, 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
December 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 254,218 |  |  | $ | 81,177 |  |  | $ | 71,950 |  |  | $ | 78,461 |  |  | $ | 56,439 |  |  | $ | 110,490 |  |  | $ | 1,888,126 |  |  | $ | 9,679 |  |  | $ | 2,550,540 |
Special mention |  | 1,206 |  |  | 5,971 |  |  | 13,721 |  |  | 835 |  |  | 7,272 |  |  | 9,846 |  |  | 20,460 |  |  | 6,348 |  |  | 65,659 |
Substandard |  | 2 |  |  | 241 |  |  | 17,853 |  |  | 11,378 |  |  | 3,374 |  |  | 117 |  |  | 17,429 |  |  | 2,391 |  |  | 52,785 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Commercial and industrial |  | 255,426 |  |  | 87,389 |  |  | 103,524 |  |  | 90,674 |  |  | 67,085 |  |  | 120,453 |  |  | 1,926,015 |  |  | 18,418 |  |  | 2,668,984 |
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 465,524 |  |  | 82,759 |  |  | 140,108 |  |  | 192,263 |  |  | 85,755 |  |  | 317,941 |  |  | 8,416 |  |  | 71 |  |  | 1,292,837 |
Special mention |  | — |  |  | — |  |  | — |  |  | 1,925 |  |  | — |  |  | 2,920 |  |  | — |  |  | — |  |  | 4,845 |
Substandard |  | — |  |  | — |  |  | 506 |  |  | — |  |  | — |  |  | 9,084 |  |  | 3,833 |  |  | — |  |  | 13,423 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Commercial real estate |  | 465,524 |  |  | 82,759 |  |  | 140,614 |  |  | 194,188 |  |  | 85,755 |  |  | 329,945 |  |  | 12,249 |  |  | 71 |  |  | 1,311,105 |
Multifamily |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 410,958 |  |  | 208,396 |  |  | 315,119 |  |  | 157,640 |  |  | 61,457 |  |  | 158,464 |  |  | 4 |  |  | — |  |  | 1,312,038 |
Special mention |  | — |  |  | 1,988 |  |  | — |  |  | 11,261 |  |  | — |  |  | 33,065 |  |  | — |  |  | — |  |  | 46,314 |
Substandard |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 2,702 |  |  | — |  |  | — |  |  | 2,702 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Multifamily |  | 410,958 |  |  | 210,384 |  |  | 315,119 |  |  | 168,901 |  |  | 61,457 |  |  | 194,231 |  |  | 4 |  |  | — |  |  | 1,361,054 |
SBA |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 106,749 |  |  | 23,972 |  |  | 8,049 |  |  | 1,957 |  |  | 10,836 |  |  | 28,495 |  |  | 928 |  |  | 143 |  |  | 181,129 |
Special mention |  | — |  |  | 1,586 |  |  | 3,618 |  |  | 236 |  |  | — |  |  | 596 |  |  | — |  |  | 4 |  |  | 6,040 |
Substandard |  | — |  |  | 5,888 |  |  | — |  |  | 390 |  |  | 3,358 |  |  | 7,245 |  |  | 599 |  |  | 899 |  |  | 18,379 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
SBA |  | 106,749 |  |  | 31,446 |  |  | 11,667 |  |  | 2,583 |  |  | 14,194 |  |  | 36,336 |  |  | 1,527 |  |  | 1,046 |  |  | 205,548 |
Construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 67,074 |  |  | 32,995 |  |  | 29,038 |  |  | 17,139 |  |  | 25,485 |  |  | — |  |  | — |  |  | — |  |  | 171,731 |
Special mention |  | — |  |  | — |  |  | — |  |  | 1,607 |  |  | — |  |  | 8,503 |  |  | — |  |  | — |  |  | 10,110 |
Substandard |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Construction |  | 67,074 |  |  | 32,995 |  |  | 29,038 |  |  | 18,746 |  |  | 25,485 |  |  | 8,503 |  |  | — |  |  | — |  |  | 181,841 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Single family residential mortgage |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 713,844 |  |  | 96,339 |  |  | 67,075 |  |  | 140,329 |  |  | 88,123 |  |  | 277,247 |  |  | 12,828 |  |  | — |  |  | 1,395,785 |
Special mention |  | — |  |  | 1,644 |  |  | 339 |  |  | 910 |  |  | 692 |  |  | 6,838 |  |  | — |  |  | — |  |  | 10,423 |
Substandard |  | — |  |  | — |  |  | — |  |  | 11,005 |  |  | 975 |  |  | 1,601 |  |  | — |  |  | 234 |  |  | 13,815 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Single family residential mortgage |  | 713,844 |  |  | 97,983 |  |  | 67,414 |  |  | 152,244 |  |  | 89,790 |  |  | 285,686 |  |  | 12,828 |  |  | 234 |  |  | 1,420,023 |
Other consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 26,179 |  |  | 13,556 |  |  | 8,891 |  |  | 5,265 |  |  | 9,038 |  |  | 15,951 |  |  | 21,327 |  |  | 2,331 |  |  | 102,538 |
Special mention |  | — |  |  | — |  |  | 4 |  |  | — |  |  | — |  |  | 25 |  |  | 63 |  |  | — |  |  | 92 |
Substandard |  | — |  |  | 61 |  |  | 14 |  |  | 148 |  |  | 46 |  |  | 26 |  |  | — |  |  | — |  |  | 295 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Other consumer |  | 26,179 |  |  | 13,617 |  |  | 8,909 |  |  | 5,413 |  |  | 9,084 |  |  | 16,002 |  |  | 21,390 |  |  | 2,331 |  |  | 102,925 |
Total loans |  | $ | 2,045,754 |  |  | $ | 556,573 |  |  | $ | 676,285 |  |  | $ | 632,749 |  |  | $ | 352,850 |  |  | $ | 991,156 |  |  | $ | 1,974,013 |  |  | $ | 22,100 |  |  | $ | 7,251,480 |
Total loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 2,044,546 |  |  | $ | 539,194 |  |  | $ | 640,230 |  |  | $ | 593,054 |  |  | $ | 337,133 |  |  | $ | 908,588 |  |  | $ | 1,931,629 |  |  | $ | 12,224 |  |  | $ | 7,006,598 |
Special mention |  | 1,206 |  |  | 11,189 |  |  | 17,682 |  |  | 16,774 |  |  | 7,964 |  |  | 61,793 |  |  | 20,523 |  |  | 6,352 |  |  | 143,483 |
Substandard |  | 2 |  |  | 6,190 |  |  | 18,373 |  |  | 22,921 |  |  | 7,753 |  |  | 20,775 |  |  | 21,861 |  |  | 3,524 |  |  | 101,399 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total loans |  | $ | 2,045,754 |  |  | $ | 556,573 |  |  | $ | 676,285 |  |  | $ | 632,749 |  |  | $ | 352,850 |  |  | $ | 991,156 |  |  | $ | 1,974,013 |  |  | $ | 22,100 |  |  | $ | 7,251,480 |
Past Due Loans The following table presents the aging of the recorded investment in past due loans as of December 31, 2021, excluding accrued interest receivable (which is not considered to be material), by class of loans:
|  | December 31, 2021
($ in thousands) |  | 30 - 59 Days Past Due |  | 60 - 89 Days Past Due |  | Greater than 89 Days Past due |  | Total Past Due |  | Current |  | Total
Commercial: |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 9,342 |  |  | $ | 1,351 |  |  | $ | 9,503 |  |  | $ | 20,196 |  |  | $ | 2,648,788 |  |  | $ | 2,668,984 |
Commercial real estate |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,311,105 |  |  | 1,311,105 |
Multifamily |  | 786 |  |  | — |  |  | — |  |  | 786 |  |  | 1,360,268 |  |  | 1,361,054 |
SBA |  | 987 |  |  | 2,360 |  |  | 15,941 |  |  | 19,288 |  |  | 186,260 |  |  | 205,548 |
Construction |  | — |  |  | — |  |  | — |  |  | — |  |  | 181,841 |  |  | 181,841 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |
Single family residential mortgage |  | 24,867 |  |  | — |  |  | 7,076 |  |  | 31,943 |  |  | 1,388,080 |  |  | 1,420,023 |
Other consumer |  | 449 |  |  | — |  |  | 89 |  |  | 538 |  |  | 102,387 |  |  | 102,925 |
Total loans |  | $ | 36,431 |  |  | $ | 3,711 |  |  | $ | 32,609 |  |  | $ | 72,751 |  |  | $ | 7,178,729 |  |  | $ | 7,251,480 |
The following table presents the aging of the recorded investment in past due loans as of December 31, 2020, excluding accrued interest receivable (which is not considered to be material), by class of loans:
|  | December 31, 2020
($ in thousands) |  | 30 - 59 Days Past Due |  | 60 - 89 Days Past Due |  | Greater than 89 Days Past due |  | Total Past Due |  | Current |  | Total
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 |  | 11,036 |  |  | 1,621 |  |  | 10,290 |  |  | 22,947 |  |  | 1,207,289 |  |  | 1,230,236 |
Other consumer |  | 216 |  |  | 61 |  |  | — |  |  | 277 |  |  | 33,109 |  |  | 33,386 |
Total loans |  | $ | 11,673 |  |  | $ | 2,308 |  |  | $ | 17,636 |  |  | $ | 31,617 |  |  | $ | 5,866,788 |  |  | $ | 5,898,405 |
Nonaccrual Loans The following table presents the composition of total nonaccrual loans and the subset of nonaccrual loans with no ACL as of the dates indicated:
|  |  |  |  | December 31, 2021 |  |  |  |  |  | December 31, 2020
($ in thousands) |  |  |  |  | Total Nonaccrual Loans |  | Nonaccrual Loans with no ACL |  |  |  |  |  | Total Nonaccrual Loans |  | Nonaccrual Loans with no ACL
Nonaccrual loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  |  |  | $ | 28,594 |  |  | $ | 9,137 |  |  |  |  |  |  | $ | 13,821 |  |  | $ | 13,088 |
Commercial real estate |  |  |  |  | — |  |  | — |  |  |  |  |  |  | 4,654 |  |  | 4,654 |
SBA |  |  |  |  | 16,653 |  |  | 11,443 |  |  |  |  |  |  | 3,749 |  |  | 648 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Single family residential mortgage |  |  |  |  | 7,076 |  |  | 7,076 |  |  |  |  |  |  | 13,519 |  |  | 13,519 |
Other consumer |  |  |  |  | 235 |  |  | 235 |  |  |  |  |  |  | 157 |  |  | 157 |
Total nonaccrual loans |  |  |  |  | $ | 52,558 |  |  | $ | 27,891 |  |  |  |  |  |  | $ | 35,900 |  |  | $ | 32,066 |
At December 31, 2021 and 2020, zero and $728 thousand of loans were past due 90 days or more and still accruing. Loans in Process of Foreclosure At December 31, 2021 and 2020, there were no consumer mortgage loans 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 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 December 2021. The December 2021 forecasts reflect a more favorable view of the economy (i.e. higher GDP growth rates and lower unemployment rates) compared to December 2020 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 resulting provision consider all of the potential uncertainties and underlying assumptions, both positive and negative. 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. The following table presents a summary of activity in the ACL for the periods indicated:
|  | Year Ended December 31,
($ in thousands) |  | 2021 |  | 2020 |  | 2019
|  | Allowance for Loan Losses |  | Reserve for Unfunded Loan Commit-ments |  | Allowance for Credit Losses |  | Allowance for Loan Losses |  | Reserve for Unfunded Loan Commit-ments |  | Allowance for Credit Losses |  | Allowance for Loan Losses |  | Reserve for Unfunded Loan Commit-ments |  | Allowance for Credit Losses
Balance at beginning of year |  | $ | 81,030 |  |  | $ | 3,183 |  |  | $ | 84,213 |  |  | $ | 57,649 |  |  | $ | 4,064 |  |  | $ | 61,713 |  |  | $ | 62,192 |  |  | $ | 4,622 |  |  | $ | 66,814 |
Impact of adopting ASU 2016-13 |  | — |  |  | — |  |  | — |  |  | 7,609 |  |  | (1,226) |  |  | 6,383 |  |  | — |  |  | — |  |  | — |
Initial reserve for purchased credit-deteriorated loans (1) |  | 13,650 |  |  | — |  |  | 13,650 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Loans charged off |  | (9,886) |  |  | — |  |  | (9,886) |  |  | (15,417) |  |  | — |  |  | (15,417) |  |  | (41,766) |  |  | — |  |  | (41,766) |
Recoveries of loans previously charged off |  | 3,358 |  |  | — |  |  | 3,358 |  |  | 1,815 |  |  | — |  |  | 1,815 |  |  | 836 |  |  | — |  |  | 836 |
Net charge-offs |  | (6,528) |  |  | — |  |  | (6,528) |  |  | (13,602) |  |  | — |  |  | (13,602) |  |  | (40,930) |  |  | — |  |  | (40,930) |
Provision for (reversal of) credit losses |  | 4,432 |  |  | 2,422 |  |  | 6,854 |  |  | 29,374 |  |  | 345 |  |  | 29,719 |  |  | 36,387 |  |  | (558) |  |  | 35,829 |
Balance at end of year |  | $ | 92,584 |  |  | $ | 5,605 |  |  | $ | 98,189 |  |  | $ | 81,030 |  |  | $ | 3,183 |  |  | $ | 84,213 |  |  | $ | 57,649 |  |  | $ | 4,064 |  |  | $ | 61,713 |
(1)Represents the amounts, at acquisition date, of expected credit losses on PCD loans, net of expected recoveries of PCD loans charged-off prior to acquisition date that we have a contractual right to receive. During 2021, we recorded a $13.7 million initial allowance for credit losses established for PCD loans from the PMB Acquisition and an $11.3 million initial charge to provision for credit losses for all other loans and unfunded commitments acquired from PMB. During 2021, net charge-offs included $4.4 million related to a commercial and industrial loan acquired from PMB and a $2.0 million SBA relationship. During 2021, recoveries totaled $3.4 million and included $2.6 million of recoveries related to PCD loans acquired from PMB that were charged-off prior to acquisition date that we had a contractual right to receive. During 2020, a $16.1 million legacy shared national credit was resolved resulting in a charge-off of $10.7 million. During 2019, we recorded a $35.1 million charge-off of a line of credit originated in November 2017 to a borrower purportedly the subject of a fraudulent scheme. In connection with the $35.1 million charge-off, on October 22, 2019, the Bank filed a complaint in the U.S. District Court for the Southern District of California (Case CV '19 02031 GPC KSC) seeking to recover its losses and other monetary damages against Chicago Title Insurance Company and Chicago Title Company, asserting claims under RICO, 18 U.S.C § 1962 and for RICO Conspiracy, Fraud, Aiding and Abetting Fraud, Negligent Misrepresentation, Breach of Fiduciary Duty and Negligence. On October 2, 2020, the case was re-filed in the Superior Court of the State of California, County of San Diego (Case 37-2020-00034947) asserting claims for Fraud, Aiding and Abetting Fraud, Conspiracy to Defraud, Negligent Misrepresentation, Breach of Fiduciary Duty, Negligence, Money Had And Received, and Conversion. On February 9, 2021, an Amended Complaint was filed asserting claims for Fraud, Aiding and Abetting Fraud, Conspiracy to Defraud, Negligent Misrepresentation, Breach of Fiduciary Duty, Negligence, Money Had And Received, Conversion, Violation of Penal Code Section 496, Violation of Corporations Code Section 25504.1, and Violation of Business & Professions Code Section 17200. We are actively considering and pursuing available sources of recovery and other potential means of mitigating the loss; however, no assurance can be given that we will be successful in that regard. During the third quarter of 2019 and in response to the identified charge-off, we undertook an extensive collateral review of all commercial lending relationships $5.0 million and above not secured by real estate. The collateral review focused on security and collateral documentation and confirmation of the Bank's collateral interest. The review was performed within the Bank's Internal Audit division and the work was validated by an independent third party. Our review and outside validation did not identify any other instances of apparent fraud for the credits reviewed or concerns over the existence of collateral held by the Bank or on our behalf at third parties; however, there are no assurances that our internal review and third party validation were sufficient to identify all such issues. Accrued interest receivable on loans receivable, net totaled $25.8 million and $24.7 million at December 31, 2021 and 2020, and is included within other assets in the accompanying consolidated statements of financial condition. The following table presents the activity and balance in the ALL as of or for the year ended December 31, 2021:
($ in thousands) |  | Commercial and Industrial |  | Commercial Real Estate |  | Multifamily |  | SBA |  | Construction |  |  |  | Single Family Residential Mortgage |  | Other Consumer |  |  |  | Total
ALL: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at December 31, 2020 |  | $ | 20,608 |  |  | $ | 19,074 |  |  | $ | 22,512 |  |  | $ | 3,145 |  |  | $ | 5,849 |  |  |  |  | $ | 9,191 |  |  | $ | 651 |  |  |  |  | $ | 81,030 |
Initial reserve for purchased credit-deteriorated loans(1) |  | 11,933 |  |  | 614 |  |  | 469 |  |  | 575 |  |  | 28 |  |  |  |  | — |  |  | 31 |  |  |  |  | 13,650 |
Charge-offs |  | (6,209) |  |  | (576) |  |  | — |  |  | (2,780) |  |  | — |  |  |  |  | (321) |  |  | — |  |  |  |  | (9,886) |
Recoveries |  | 3,150 |  |  | — |  |  | — |  |  | 132 |  |  | — |  |  |  |  | 74 |  |  | 2 |  |  |  |  | 3,358 |
Net (charge-offs) recoveries |  | (3,059) |  |  | (576) |  |  | — |  |  | (2,648) |  |  | — |  |  |  |  | (247) |  |  | 2 |  |  |  |  | (6,528) |
Provision for (reversal of) credit losses |  | 4,075 |  |  | 2,615 |  |  | (5,088) |  |  | 1,945 |  |  | (255) |  |  |  |  | 664 |  |  | 476 |  |  |  |  | 4,432 |
Balance at December 31, 2021 |  | $ | 33,557 |  |  | $ | 21,727 |  |  | $ | 17,893 |  |  | $ | 3,017 |  |  | $ | 5,622 |  |  |  |  | $ | 9,608 |  |  | $ | 1,160 |  |  |  |  | $ | 92,584 |
(1)Represents the amounts, at acquisition date, of expected credit losses on PCD loans and expected recoveries of PCD loans charged-off prior to acquisition date that we have a contractual right to receive. The following table presents the activity and balance in the ALL as of or for the year ended December 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 ASU 2016-13 |  | 662 |  |  | 4,847 |  |  | 1,809 |  |  | 388 |  |  | 103 |  |  |  |  | (420) |  |  | 220 |  |  |  |  | 7,609 |
Charge-offs |  | (13,588) |  |  | — |  |  | — |  |  | (1,083) |  |  | — |  |  |  |  | (742) |  |  | (4) |  |  |  |  | (15,417) |
Recoveries |  | 604 |  |  | — |  |  | — |  |  | 328 |  |  | — |  |  |  |  | 664 |  |  | 219 |  |  |  |  | 1,815 |
Net (charge-offs) recoveries |  | (12,984) |  |  | — |  |  | — |  |  | (755) |  |  | — |  |  |  |  | (78) |  |  | 215 |  |  |  |  | (13,602) |
Provision for (reversal of) credit losses |  | 10,577 |  |  | 8,286 |  |  | 9,298 |  |  | 392 |  |  | 1,840 |  |  |  |  | (797) |  |  | (222) |  |  |  |  | 29,374 |
Balance at December 31, 2020 |  | $ | 20,608 |  |  | $ | 19,074 |  |  | $ | 22,512 |  |  | $ | 3,145 |  |  | $ | 5,849 |  |  |  |  | $ | 9,191 |  |  | $ | 651 |  |  |  |  | $ | 81,030 |
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 December 31, 2021:
|  | December 31, 2021
|  | Real Estate |  |  |  |  |  |
($ in thousands) |  | Commercial |  | Residential |  | Business Assets |  | Automobile |  | Total
Commercial: |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 13,518 |  |  | $ | 37 |  |  | $ | 4,776 |  |  | $ | — |  |  | $ | 18,331 |
Commercial real estate |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Multifamily |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
SBA |  | 689 |  |  | 4,458 |  |  | 11,511 |  |  | — |  |  | 16,658 |
Construction |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Consumer: |  |  |  |  |  |  |  |  |  |
Single family residential mortgage |  | — |  |  | 14,012 |  |  | — |  |  | — |  |  | 14,012 |
Other consumer |  | — |  |  | — |  |  | — |  |  | 235 |  |  | 235 |
Total loans |  | $ | 14,207 |  |  | $ | 18,507 |  |  | $ | 16,287 |  |  | $ | 235 |  |  | $ | 49,236 |
Collateral dependent loans consisted of the following as of December 31, 2020:
|  | 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 |
Multifamily |  | — |  |  | — |  |  | — |  |  | — |
SBA |  | 349 |  |  | 497 |  |  | 2,750 |  |  | 3,596 |
Construction |  | — |  |  | — |  |  | — |  |  | — |
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 (TDRs) Troubled debt restructured loans consisted of the following as of the dates indicated:
|  |  |  |  |  | December 31,
($ in thousands) |  |  |  |  |  | 2021 |  |  |  |  |  | 2020
Commercial: |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  |  |  |  | $ | 5,241 |  |  |  |  |  |  | $ | 3,884 |
Commercial real estate |  |  |  |  |  | 4,243 |  |  |  |  |  |  | — |
SBA |  |  |  |  |  | 265 |  |  |  |  |  |  | 265 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |
Single family residential mortgage |  |  |  |  |  | 6,935 |  |  |  |  |  |  | 4,848 |
Other consumer |  |  |  |  |  | — |  |  |  |  |  |  | — |
Total |  |  |  |  |  | $ | 16,684 |  |  |  |  |  |  | $ | 8,997 |
We had commitments to lend to customers with outstanding loans that were classified as TDRs of $63 thousand at both December 31, 2021 and 2020. Accruing TDRs were $12.5 million and nonaccrual TDRs were $4.1 million at December 31, 2021, compared to accruing TDRs of $4.7 million and nonaccrual TDRs of $4.3 million at December 31, 2020. The increase in TDRs during the year ended December 31, 2021 was primarily due the addition of $7.9 million in TDRs from the PMB Acquisition that were outstanding at December 31, 2021. The following table summarizes the pre-modification and post-modification balances of the new TDRs for the periods indicated:
|  | Year Ended December 31,
|  | 2021 |  | 2020 |  | 2019
($ 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 |  | — |  |  | $ | — |  |  | $ | — |  |  | 1 |  |  | $ | 5,000 |  |  | $ | 5,000 |  |  | 12 |  |  | $ | 18,512 |  |  | $ | 18,193 |
SBA |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 2 |  |  | 3,214 |  |  | 869 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Single family residential mortgage |  | 2 |  |  | 3,420 |  |  | 3,420 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total |  | 2 |  |  | $ | 3,420 |  |  | $ | 3,420 |  |  | 1 |  |  | $ | 5,000 |  |  | $ | 5,000 |  |  | 14 |  |  | $ | 21,726 |  |  | $ | 19,062 |
For the year ended December 31, 2021, there were no loans that were modified as a TDR during the past 12 months that had a subsequent payment default. For the years ended December 31, 2020, and 2019, there was one SBA loan and no loans that were modified as TDRs during the past 12 months that had a subsequent payment default. 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 |  |  |  | Extension of Maturity(1) |  |  |  | Total
($ in thousands) |  | Count |  | Amount |  | Count |  | Amount |  |  |  |  |  | Count |  | Amount |  |  |  |  |  | Count |  | Amount
Year ended December 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Single family residential mortgage (2) |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  |  |  | 2 |  |  | 3,420 |  |  |  |  |  |  | 2 |  |  | 3,420 |
Total |  | — |  |  | $ | — |  |  | — |  |  | $ | — |  |  |  |  |  |  | 2 |  |  | $ | 3,420 |  |  |  |  |  |  | 2 |  |  | $ | 3,420 |
Year ended December 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | — |  |  | $ | — |  |  | — |  |  | $ | — |  |  |  |  |  |  | 1 |  |  | $ | 5,000 |  |  |  |  |  |  | 1 |  |  | $ | 5,000 |
Total |  | — |  |  | $ | — |  |  | — |  |  | $ | — |  |  |  |  |  |  | 1 |  |  | $ | 5,000 |  |  |  |  |  |  | 1 |  |  | $ | 5,000 |
Year ended December 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | 12 |  |  | $ | 18,193 |  |  | — |  |  | $ | — |  |  |  |  |  |  | — |  |  | $ | — |  |  |  |  |  |  | 12 |  |  | $ | 18,193 |
SBA |  | 2 |  |  | 869 |  |  | — |  |  | — |  |  |  |  |  |  | — |  |  | — |  |  |  |  |  |  | 2 |  |  | 869 |
Total |  | 14 |  |  | $ | 19,062 |  |  | — |  |  | $ | — |  |  |  |  |  |  | — |  |  | $ | — |  |  |  |  |  |  | 14 |  |  | $ | 19,062 |
(1)Excludes loans in forbearance or deferment that received an extension of maturity through the CARES Act during the years ended December 31, 2021 and 2020. (2)Includes one single family residential mortgage loan totaling $1.8 million that included both an extension in maturity and change in interest rate from variable to fixed. Purchases and Sales The following table presents loans purchased and/or sold by portfolio segment, excluding loans held-for-sale and loans acquired in a business combination for the periods indicated:
|  | Year Ended December 31,
|  | 2021 |  | 2020 |  | 2019
($ in thousands) |  | Purchases |  | Sales |  | Purchases |  | Sales |  | Purchases |  | Sales
Commercial: |  |  |  |  |  |  |  |  |  |  |  |
Multifamily |  | $ | 29,764 |  |  | $ | — |  |  | $ | 120,900 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Construction |  | — |  |  | — |  |  | 14,750 |  |  | — |  |  | — |  |  | — |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |
Single family residential mortgage |  | 795,773 |  |  | — |  |  | 149,687 |  |  | — |  |  | — |  |  | — |
Total |  | $ | 825,537 |  |  | $ | — |  |  | $ | 285,337 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Loan purchases during the years ended December 31, 2021, 2020, and 2019 were made at a net premium of $17.5 million, $4.7 million and zero. The following table presents PCD loans acquired for the periods indicated:
|  | Year Ended December 31,
($ in thousands) |  | 2021 |  | 2020 |  | 2019
Par value |  | 225,405 |  |  | — |  |  | — |
Initial reserve based on ACL methodology(1) |  | (16,200) |  |  | — |  |  | — |
Net discount related to items other than credit |  | (3,786) |  |  | — |  |  | — |
Total purchase price |  | $ | 205,419 |  |  | $ | — |  |  | $ | — |
(1)The initial reserve for PCD loans at acquisition date and based on our ACL methodology was $13.7 million and included $2.6 million related to expected recoveries of loans that were fully or partially charged off prior to acquisition. The following table presents loans transferred from (to) loans held-for-sale by portfolio segment for the periods indicated:
|  | Year Ended December 31,
|  | 2021 |  | 2020 |  | 2019
($ 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 |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Commercial real estate |  | — |  |  | (4,367) |  |  | — |  |  | — |  |  | — |  |  | (573) |
Multifamily |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (752,087) |
SBA |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (559) |
Construction |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (2,519) |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |
Single family residential mortgage |  | — |  |  | (10,839) |  |  | — |  |  | — |  |  | — |  |  | (383,859) |
Other consumer |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total |  | $ | — |  |  | $ | (15,206) |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (1,139,597) |
During the year ended December 31, 2021, we transferred $4.4 million of commercial mortgage loans and $10.8 million of single family residential mortgage loans to held-for-sale. Included in transfers to loans held for sale for the year ended December 31, 2019 is $573.9 million in multifamily loans from loans held-for-investment related to our completed Freddie Mac multifamily securitization which closed during the third quarter of 2019. The loans included in the securitization had a weighted average coupon of 3.79% and a weighted average term to initial reset of 3.5 years. The related mortgage servicing rights were also sold. In connection with the securitization, during the second quarter of 2019, we entered into interest rate swap agreements with a combined notional value of $543.4 million to offset variability in the fair value of the related loans as a result of changes in market interest rates. During the year ended December 31, 2019, we realized a loss of $9.0 million related to these swap agreements due to a decline in interest rates since their execution and this was offset by the $8.9 million gross gain realized on the loans sold into the securitization. The swap agreements were closed at the time the loans were sold into the securitization. Non-Traditional Mortgage (NTM) Loans As of December 31, 2021 and 2020, the NTM loans totaled $635.3 million, or 8.8% of total loans, and $437.1 million, or 7.4% of total loans, respectively. These SFR loans are included in our consumer portfolio and comprised of three interest only products: interest only loans, Green Loans, and a small number of additional loans with the potential for negative amortization. Interest only loans are primarily SFR first mortgage loans that generally have a 30 to 40-year term at the time of origination and include payment features that allow interest only payments in initial periods before converting to a fully amortizing loan. At December 31, 2021 and 2020, interest only loans totaled $613.3 million and $401.6 million. Green Loans are SFR first and second mortgage lines of credit with a linked checking account that allows all types of deposits and withdrawals to be performed. Green Loans are generally interest only for a 15-year term with a balloon payment due at maturity. At December 31, 2021 and 2020, Green Loans totaled $21.5 million and $33.2 million. Negative amortization loans totaled $0.5 million and $2.3 million at December 31, 2021 and 2020. We discontinued origination of negative amortization loans in 2007. We no longer originate SFR loans, however we have and may continue to purchase pools of loans that include NTM loans such as interest only loans with maturities of up to 40 years and flexible initial repricing dates, ranging from 1 to 10 years, and periodic repricing dates through the life of the loan. At December 31, 2021 and 2020, nonperforming NTM loans totaled $4.0 million and $8.7 million. Non-Traditional Mortgage Performance Indicators Our risk management policy and credit monitoring include reviewing delinquency, FICO scores, and LTV ratios on the NTM loan portfolio. We also continuously monitor market conditions for our geographic lending areas. We have determined that the most significant performance indicators for NTM loans are LTV ratios and FICO scores. At December 31, 2021, $631.5 million of our $633.7 million NTM first lien portfolio had LTVs of 80% or less. At December 31, 2021, $14.1 million or 71% of our $19.9 million Green Loans first lien portfolio had FICO scores of 700 or greater.

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