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Allowance for Credit Losses (Tables)
 6 Months Ended
Jun. 30, 2020
Provision for Loan and Lease Losses [Abstract]  
Summary of allocation of the allowance for loan losses The following table provides the allocation of the ACL for loans held for investment as well as the activity in the ACL attributed to various segments in the loan portfolio as of and for the period indicated:
Three Months Ended June 30, 2020
 Beginning ACL Balance (1)
 Initial ACL Recorded for PCD Loans  Charge-offs  Recoveries Provision for Credit Losses  Ending
ACL Balance
(Dollars in thousands)
Investor loans secured by real estate
CRE non-owner occupied$15,896  $3,025  $—  $—  $44,086  $63,007  
Multifamily14,722  8,710  —  —  40,079  63,511  
Construction and land9,222  2,051  —  —  7,531  18,804  
SBA secured by real estate935  —  (554) —  1,629  2,010  
Business loans secured by real estate
CRE owner-occupied26,793  3,766  —  11  17,643  48,213  
Franchise real estate secured7,503  —  —  —  5,557  13,060  
SBA secured by real estate4,044  235  —  3  86  4,368  
Commercial loans
Commercial and industrial15,742  2,325  (2,286) 21  26,165  41,967  
Franchise non-real estate secured16,616  —  (1,227) —  6,287  21,676  
SBA non-real estate secured516  924  (556) (2) (282) 600  
Retail loans
Single family residential1,137  —  (62) 1  403  1,479  
Consumer loans2,296  206  —  1  1,073  3,576  
Totals$115,422  $21,242  $(4,685) $35  $150,257  $282,271  

Six Months Ended June 30, 2020
 Beginning ACL Balance (1)
 Adoption of ASC 326  Initial ACL Recorded for PCD Loans  Charge-offs  Recoveries Provision for Credit Losses  Ending
ACL Balance
(Dollars in thousands)
Investor loans secured by real estate
CRE non-owner occupied$1,899  $8,423  $3,025  $(387) $—  $50,047  $63,007  
Multifamily729  9,174  8,710  —  —  44,898  63,511  
Construction and land4,484  (124) 2,051  —  —  12,393  18,804  
SBA secured by real estate1,915  (1,401) —  (554) —  2,050  2,010  
Business loans secured by real estate
CRE owner-occupied2,781  20,166  3,766  —  23  21,477  48,213  
Franchise real estate secured592  5,199  —  —  —  7,269  13,060  
SBA secured by real estate2,119  2,207  235  (315) 74  48  4,368  
Commercial loans
Commercial and industrial13,857  87  2,325  (2,776) 26  28,448  41,967  
Franchise non-real estate secured5,816  9,214  —  (1,227) —  7,873  21,676  
SBA non-real estate secured445  218  924  (792) 2  (197) 600  
Retail loans
Single family residential655  541  206  (62) 1  138  1,479  
Consumer loans406  1,982  —  (8) 1  1,195  3,576  
Totals$35,698  $55,686  $21,242  $(6,121) $127  $175,639  $282,271  
______________________________
(1) Beginning ACL balance represents the ALLL accounted for under ASC 450 and ASC 310, which is reflective of probable incurred losses as of the balance sheet date.
        The following table provides the allocation of the ALLL for loans held for investment as well as the activity attributed to various segments in the loan portfolio as of and for the period indicated, as determined in accordance with ASC 450 and ASC 310, prior to the adoption of ASC 326:
 For the Three Months Ended June 30, 2019
Beginning ALLL BalanceCharge-offsRecoveriesProvision for Credit LossesEnding
ALLL Balance
(Dollars in thousands)
Investor loans secured by real estate
CRE non-owner-occupied$1,668  $(488) $—  $585  $1,765  
Multifamily669  —  —  36  705  
Construction and land5,960  —  —  (552) 5,408  
SBA secured by real estate2,704  (721) —  (661) 1,322  
Business loans secured by real estate
CRE owner-occupied1,969  —  15  315  2,299  
Franchise real estate secured2,173  (1,376) —  (218) 579  
SBA secured by real estate1,966  (254) —  (101) 1,611  
Commercial loans
Commercial and industrial13,587  (393) 47  555  13,796  
Franchise non-real estate secured5,698  (160) —  648  6,186  
SBA non-real estate secured503  (244) 1  170  430  
Retail loans
Single family residential758  —  1  (55) 704  
Consumer loans201  —  —  20  221  
Totals$37,856  $(3,636) $64  $742  $35,026  
For the Six Months Ended June 30, 2019
Beginning ALLL BalanceCharge-offsRecoveriesProvision for Credit LossesEnding
ALLL Balance
(Dollars in thousands)
Investor loans secured by real estate
CRE non-owner-occupied$1,624  $(488) $—  $629  $1,765  
Multifamily740  —  —  (35) 705  
Construction and land5,964  —  —  (556) 5,408  
SBA secured by real estate1,827  (721) —  216  1,322  
Business loans secured by real estate
CRE owner-occupied1,908  —  23  368  2,299  
Franchise real estate secured743  (1,376) —  1,212  579  
SBA secured by real estate1,824  (254) —  41  1,611  
Commercial loans
Commercial and industrial13,695  (695) 114  682  13,796  
Franchise non-real estate secured6,066  (160) —  280  6,186  
SBA non-real estate secured654  (244) 4  16  430  
Retail loans
Single family residential808  —  1  (105) 704  
Consumer loans219  (5) 1  6  221  
Totals$36,072  $(3,943) $143  $2,754  $35,026  
The following table presents loans individually and collectively evaluated for impairment and their respective ALLL allocation at December 31, 2019 as determined in accordance with ASC 450 and ASC 310, prior to the adoption of ASC 326:
December 31, 2019
Loans Evaluated Individually for ImpairmentALLL Attributed to Individually Evaluated LoansLoans Evaluated Collectively for ImpairmentALLL Attributed to Collectively Evaluated Loans
(Dollars in thousands)
Investor loans secured by real estate
CRE non-owner-occupied$1,088  $—  $2,069,053  $1,899  
Multifamily—  —  1,575,726  729  
Construction and land—  —  438,786  4,484  
SBA secured by real estate390  —  68,041  1,915  
Business loans secured by real estate
CRE owner-occupied—  —  1,846,554  2,781  
Franchise real estate secured—  —  353,240  592  
SBA secured by real estate1,517  —  86,864  2,119  
Commercial loans
Commercial and industrial7,529  —  1,385,741  13,857  
Franchise non-real estate secured10,834  —  553,523  5,816  
SBA non-real estate secured1,118  —  16,308  445  
Retail loans
Single family residential366  —  254,658  655  
Consumer loans—  —  50,975  406  
Totals$22,842  $—  $8,699,469  $35,698  
Schedule of allowance for credit quality indicators The following table stratifies the loans held for investment portfolio by the Company’s internal risk grading, and by year of origination, as of June 30, 2020:
Term Loans by Vintage
20202019201820172016PriorRevolvingRevolving Converted to Term During the PeriodTotal
June 30, 2020(Dollars in thousands)
Investor loans secured by real estate
CRE non-owner-occupied
Pass$155,429  $567,989  $482,567  $359,173  $319,468  $876,776  $10,924  $—  $2,772,326  
Special mention—  —  —  —  —  4,872  —  —  4,872  
Substandard—  —  322  528  518  4,567  559  —  6,494  
Multifamily
Pass522,381  1,753,769  1,010,047  761,576  474,835  701,092  1,031  —  5,224,731  
Substandard—  —  —  —  —  826  —  —  826  
Construction and land
Pass13,838  140,848  135,797  36,569  —  8,468  461  —  335,981  
Special mention—  —  19,643  —  —  —  —  —  19,643  
Substandard—  —  —  1,802  —  —  —  —  1,802  
SBA secured by real estate
Pass495  10,436  12,284  15,483  6,734  9,392  —  —  54,824  
Special mention—  —  —  698  —  269  —  —  967  
Substandard—  268  937  —  795  1,691  —  —  3,691  
Total investor loans secured by real estate$692,143  $2,473,310  $1,661,597  $1,175,829  $802,350  $1,607,953  $12,975  $—  $8,426,157  
Business loans secured by real estate
CRE owner-occupied
Pass$212,046  $435,924  $345,829  $324,096  $261,057  $525,237  $4,875  $—  $2,109,064  
Special mention5,979  15,734  —  3,886  —  8,476  —  —  34,075  
Substandard—  —  7,086  2,525  6,797  10,357  250  —  27,015  
Franchise real estate secured
Pass20,406  88,808  76,192  103,848  31,578  42,932  —  —  363,764  
Substandard—  —  —  —  —  883  —  —  883  
SBA secured by real estate
Pass1,905  7,693  14,159  17,302  10,510  28,021  365  —  79,955  
Special mention—  —  —  1,008  343  —  —  —  1,351  
Substandard—  —  —  914  148  3,174  —  —  4,236  
Total loans secured by business real estate$240,336  $548,159  $443,266  $453,579  $310,433  $619,080  $5,490  $—  $2,620,343  
Term Loans by Vintage
20202019201820172016PriorRevolvingRevolving Converted to Term During the PeriodTotal
June 30, 2020(Dollars in thousands)
Commercial Loans
Commercial and industrial
Pass$106,699  $388,548  $290,535  $221,262  $71,937  $105,707  $803,473  $2,470  $1,990,631  
Special mention—  73  2,928  1,994  1,562  2,671  20,969  500  30,697  
Substandard70  309  2,621  1,000  6,567  4,883  14,342  193  29,985  
Franchise non-real estate secured
Pass10,347  206,422  121,616  74,743  49,307  45,116  2,205  —  509,756  
Special mention—  —  —  3,834  —  —  —  —  3,834  
Substandard—  —  —  7,737  —  2,428  —  —  10,165  
SBA non-real estate secured
Pass646  2,341  1,428  2,517  654  4,276  —  3,537  15,399  
Special mention—  —  —  1,745  284  150  —  —  2,179  
Substandard—  86  399  856  —  1,374  764  —  3,479  
SBA PPP
Pass1,128,780  —  —  —  —  —  —  —  1,128,780  
Total commercial loans$1,246,542  $597,779  $419,527  $315,688  $130,311  $166,605  $841,753  $6,700  $3,724,905  
Retail Loans
Single family residential
Pass$4,863  $9,426  $15,553  $14,991  $38,123  $143,690  $37,140  —  $263,786  
Special mention—  —  —  —  —  58  —  —  58  
Substandard—  —  —  —  251  1,075  —  —  1,326  
Consumer loans
Pass72  174  870  38,039  23  3,273  3,812  —  46,263  
Substandard—  —  —  —  —  46  —  —  46  
Total retail loans$4,935  $9,600  $16,423  $53,030  $38,397  $148,142  $40,952  $—  $311,479  
Totals gross loans$2,183,956  $3,628,848  $2,540,813  $1,998,126  $1,281,491  $2,541,780  $901,170  $6,700  $15,082,884  
        The following tables stratify the loan portfolio by the Company’s internal risk grading as of December 31, 2019:
 Credit Risk Grades
PassSpecial
Mention		SubstandardTotal Gross
Loans
December 31, 2019(Dollars in thousands)
Investor loans secured by real estate    
CRE non-owner-occupied$2,067,875  $1,178  $1,088  $2,070,141  
Multifamily1,575,510  —  216  1,575,726  
Construction and land438,769  —  17  438,786  
SBA secured by real estate65,835  973  1,623  68,431  
Total investor loans secured by real estate4,147,989  2,151  2,944  4,153,084  
Business loans secured by real estate
CRE owner-occupied1,831,853  11,167  3,534  1,846,554  
Franchise real estate secured352,319  921  —  353,240  
SBA secured by real estate83,106  1,842  3,433  88,381  
Total business loans secured by real estate2,267,278  13,930  6,967  2,288,175  
Commercial loans   
Commercial and industrial1,359,662  13,226  20,382  1,393,270  
Franchise non-real estate secured546,594  6,930  10,833  564,357  
SBA not secured by real estate13,933  485  3,008  17,426  
Total commercial loans1,920,189  20,641  34,223  1,975,053  
Retail loans
Single family residential254,463  —  561  255,024  
Consumer loans50,921  —  54  50,975  
Total retail loans305,384  —  615  305,999  
Total gross loans$8,640,840  $36,722  $44,749  $8,722,311  
The following table presents PD bands for commercial real estate and commercial loan segments of the loan portfolio as of the date indicated. It should be noted that SBA PPP loans, which are in the commercial loans segment, have been excluded from this table since they are not included in the Company’s ACL model.
Commercial Real Estate Term Loans by Vintage
20202019201820172016PriorRevolvingRevolving Converted to Term During the PeriodTotal
June 30, 2020(Dollars in thousands)
Investor loans secured by real estate
CRE non-owner-occupied
0% - 5.00%$153,133  $561,104  $474,139  $258,886  $279,780  $793,398  $10,924  $—  $2,531,364  
>5.00% - 10.00%—  2,897  8,428  86,660  37,621  39,947  —  —  175,553  
Greater than 10%2,296  3,988  322  14,155  2,585  52,870  559  —  76,775  
Multifamily
0% - 5.00%520,782  1,723,731  991,561  746,855  460,328  678,741  1,031  —  5,123,029  
>5.00% - 10.00%1,599  17,431  8,692  2,176  4,098  8,906  —  —  42,902  
Greater than 10%—  12,607  9,794  12,545  10,409  14,271  —  —  59,626  
Construction and Land
0% - 5.00%13,838  32,921  4,296  20,357  —  6,919  66  —  78,397  
>5.00% - 10.00%—  40,785  21,154  3,275  —  —  395  —  65,609  
Greater than 10%—  67,142  129,990  14,739  —  1,549  —  —  213,420  
SBA secured by real estate
0% - 5.00%495  10,704  12,115  16,181  7,135  11,352  —  —  57,982  
>5.00% - 10.00%—  —  512  —  —  —  —  —  512  
Greater than 10%—  —  594  —  394  —  —  —  988  
Total investor loans secured by real estate$692,143  $2,473,310  $1,661,597  $1,175,829  $802,350  $1,607,953  $12,975  $—  $8,426,157  
Business loans secured by real estate
CRE owner-occupied
0% - 5.00%$211,860  $402,474  $309,907  $304,611  $234,139  $488,345  $3,124  $—  $1,954,460  
>5.00% - 10.00%186  33,118  35,922  22,510  26,918  42,552  1,504  —  162,710  
Greater than 10%5,979  16,066  7,086  3,386  6,797  13,173  497  —  52,984  
Franchise real estate secured
0% - 5.00%18,724  86,263  74,832  95,221  28,550  42,831  —  —  346,421  
>5.00% - 10.00%754  —  632  8,627  3,028  101  —  —  13,142  
Greater than 10%928  2,545  728  —  —  883  —  —  5,084  
SBA secured by real estate
0% - 5.00%1,905  7,693  13,476  16,611  8,547  24,605  365  —  73,202  
>5.00% - 10.00%—  —  683  1,699  2,306  3,416  —  —  8,104  
Greater than 10%—  —  —  914  148  3,174  —  —  4,236  
Total business loans secured by real estate$240,336  $548,159  $443,266  $453,579  $310,433  $619,080  $5,490  $—  $2,620,343  
Commercial Real Estate Term Loans by Vintage
20202019201820172016PriorRevolvingRevolving Converted to Term During the PeriodTotal
June 30, 2020(Dollars in thousands)
Commercial Loans
Commercial and industrial
0% - 5.00%$91,538  $376,850  $268,429  $211,610  $58,496  $94,984  $508,985  $1,593  $1,612,485  
>5.00% - 10.00%9,735  11,741  24,030  11,639  14,449  8,862  271,951  547  352,954  
Greater than 10%5,496  339  3,625  1,007  7,121  9,415  57,848  1,023  85,874  
Franchise non-real estate secured
0% - 5.00%9,535  197,360  117,509  69,287  46,925  40,305  1,476  —  482,397  
>5.00% - 10.00%812  6,619  3,593  9,290  2,382  4,704  729  —  28,129  
Greater than 10%—  2,443  514  7,737  —  2,535  —  —  13,229  
SBA not secured by real estate
0% - 5.00%646  2,341  1,301  2,517  571  3,842  —  3,537  14,755  
>5.00% - 10.00%—  —  132  1,745  367  439  —  —  2,683  
Greater than 10%—  86  394  856  —  1,519  764  —  3,619  
Total commercial loans$117,762  $597,779  $419,527  $315,688  $130,311  $166,605  $841,753  $6,700  $2,596,125  
The following table summarizes the amortized cost of loans in these segments by current estimated LTV and by year of origination as of the date indicated:
Term Loans by Vintage
20202019201820172016PriorRevolvingRevolving Converted to Term During the PeriodTotal
June 30, 2020(Dollars in thousands)
Investor loans secured by real estate
CRE non-owner-occupied
55% and below$73,769  $241,867  $191,322  $156,622  $189,946  $618,498  $10,924  —  $1,482,948  
>55-65%54,874  214,909  119,539  177,366  104,448  231,545  559  —  903,240  
>65-75%22,526  108,464  169,089  23,368  25,379  31,566  —  —  380,392  
Greater than 75%4,260  2,749  2,939  2,345  213  4,606  —  —  17,112  
Multifamily
55% and below123,726  387,468  341,633  223,446  95,645  290,333  599  —  1,462,850  
>55-65%164,019  734,321  386,341  266,322  167,271  283,527  432  —  2,002,233  
>65-75%234,636  609,946  270,888  269,910  211,919  122,199  —  —  1,719,498  
Greater than 75%—  22,034  11,185  1,898  —  5,859  —  —  40,976  
Construction and land
55% and below13,838  136,216  107,812  30,148  —  8,468  461  —  296,943  
>55-65%—  4,632  42,778  8,223  —  —  —  —  55,633  
>65-75%—  —  3,697  —  —  —  —  —  3,697  
Greater than 75%—  —  1,153  —  —  —  —  —  1,153  
SBA secured by real estate
55% and below—  1,148  655  841  332  436  —  —  3,412  
>55-65%—  3,187  1,647  3,860  623  4,791  —  —  14,108  
>65-75%495  3,724  7,802  5,364  4,358  2,829  —  —  24,572  
Greater than 75%—  2,645  3,117  6,116  2,216  3,296  —  —  17,390  
Total investor loans secured by real estate$692,143  $2,473,310  $1,661,597  $1,175,829  $802,350  $1,607,953  $12,975  $—  $8,426,157  
Business loan secured by real estate
CRE owner-occupied
55% and below$55,579  $153,995  $171,876  $196,583  $150,233  $377,115  $5,125  —  $1,110,506  
>55-65%63,067  100,226  89,960  64,803  73,724  81,403  —  —  473,183  
>65-75%56,327  175,639  63,734  54,957  39,714  58,581  —  —  448,952  
Greater than 75%43,052  21,798  27,345  14,164  4,183  26,971  —  —  137,513  
Franchise real estate secured
55% and below7,461  18,360  14,615  16,057  11,567  20,926  —  —  88,986  
>55-65%928  8,900  13,096  29,110  7,823  5,919  —  —  65,776  
>65-75%2,911  49,851  25,927  9,859  11,062  14,848  —  —  114,458  
Greater than 75%9,106  11,697  22,554  48,822  1,126  2,122  —  —  95,427  
SBA secured by real estate
55% and below736  1,735  6,537  4,784  2,348  10,568  365  —  27,073  
>55-65%104  514  2,337  2,643  2,252  4,121  —  —  11,971  
>65-75%264  2,687  754  4,602  3,167  5,871  —  —  17,345  
Greater than 75%801  2,757  4,531  7,195  3,234  10,635  —  —  29,153  
Total business loans secured by real estate$240,336  $548,159  $443,266  $453,579  $310,433  $619,080  $5,490  $—  $2,620,343  
        The following table presents FICO bands for the retail segment of the loan portfolio as of the date indicated:
Term Loans by Vintage
20202019201820172016PriorRevolvingRevolving Converted to Term During the PeriodTotal
June 30, 2020(Dollars in thousands)
Retail Loans
Single family residential
Greater than 740$4,863  $8,236  $13,274  $9,719  $31,203  $96,475  $27,050  —  $190,820  
>680 - 740—  1,190  2,268  4,794  2,660  18,190  9,095  —  38,197  
>580 - 680—  —  —  466  3,178  9,030  959  —  13,633  
Less than 580—  —  11  12  1,333  21,128  36  —  22,520  
Consumer loans
Greater than 74072  95  863  51  20  2,661  1,993  —  5,755  
>680 - 740—  59  7  37,988  —  488  1,737  —  40,279  
>580 - 680—  20  —  —  3  150  51  —  224  
Less than 580—  —  —  —  —  20  31  —  51  
Total retail loans$4,935  $9,600  $16,423  $53,030  $38,397  $148,142  $40,952  $—  $311,479