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Allowance for Credit Losses
 3 Months Ended
Mar. 31, 2021
Provision for Loan and Lease Losses [Abstract]  
Allowance for Credit Losses Allowance for Credit Losses
 
The Company accounts for credit losses on loans and unfunded loan commitments in accordance with ASC 326 - Financial Instruments - Credit Losses, to determine the ACL. ASC 326 requires the Company to recognize estimates for lifetime credit losses on loans and unfunded loan commitments at the time of origination or acquisition. The recognition of losses at origination or acquisition represents the Company’s best estimate of the lifetime expected credit loss associated with a loan given the facts and circumstances associated with the particular loan, and involves the use of significant management judgement and estimates, which are subject to change based on management’s ongoing assessment of the credit quality of the loan portfolio and changes in economic forecasts used in the model. The Company uses a discounted cash flow model when determining estimates for the ACL for commercial real estate loans and commercial loans, which comprise the majority of the loan portfolio, and uses a historical loss rate model for retail loans. The Company also utilizes proxy loan data in its ACL model where the Company’s own historical data is not sufficiently available.

The discounted cash flow model is applied on an instrument-by-instrument basis, and for loans with similar risk characteristics, to derive estimates for the lifetime ACL for each loan. The discounted cash flow methodology relies on several significant components essential to the development of estimates for future cash flows on loans and unfunded commitments. These components consist of: (i) the estimated probability of default, (ii) the estimated loss given default, which represents the estimated severity of the loss when a loan is in default, (iii) estimates for prepayment activity on loans, and (iv) the estimated exposure to the Company at default (“EAD”). These components are also heavily influenced by changes in economic forecasts employed in the model over a reasonable and supportable period. The Company’s ACL methodology for unfunded loan commitments also includes assumptions concerning the probability an unfunded commitment will be drawn upon by the borrower. These assumptions are based on the Company’s historical experience.

The Company’s discounted cash flow ACL model for commercial real estate and commercial loans uses internally derived estimates for prepayments in determining the amount and timing of future contractual cash flows to be collected. The estimate of future cash flows also incorporates estimates for contractual amounts the Company believes may not be collected, which are based on assumptions for PD, LGD, and EAD. EAD is the estimated outstanding balance of the loan at the time of default. It is determined by the contractual payment schedule and expected payment profile of the loan, incorporating estimates for expected prepayments and future draws on revolving credit facilities. The Company discounts cash flows using the effective interest rate on the loan. The effective interest rate represents the contractual rate on the loan; adjusted for any purchase premiums, purchase discounts, and deferred fees and costs associated with the origination of the loan. The Company has made an accounting policy election to adjust the effective interest rate to take into consideration the effects of estimated prepayments. The ACL for loans is determined by measuring the amount by which a loan’s amortized cost exceeds its discounted cash flows.

Probability of Default

The PD for commercial real estate loans is based largely on a model provided by a third party, using proxy loan information. The PDs generated by this model are reflective of current and expected changes in economic conditions and conditions in the commercial real estate market, and how they are expected to impact loan level and property level attributes, and ultimately the likelihood of a default event occurring. Significant loan and property level attributes include: loan to value ratios, debt service coverage, loan size, loan vintage and property types.

The PD for commercial loans is based on an internally developed PD rating scale that assigns PDs based on the Company’s internal risk grades for loans. This internally developed PD rating scale is based on a combination of the Company’s own historical data and observed historical data from the Company’s peers, which consist of banks that management believes align with our business profile. As credit risk grades change for loans in the commercial segment, the PD assigned to them also changes. As with commercial real estate loans, the PD for commercial loans is also impacted by current and expected economic conditions.
The Company considers loans to be in default when they are 90 days or more past due and still accruing or placed on nonaccrual status.

Loss Given Default

LGDs for commercial real estate loans are derived from a third party, using proxy loan information, and are based on loan and property level characteristics in the Company’s loan portfolio, such as: loan to values, estimated time to resolution, property size, and current and estimated future market price changes for underlying collateral. The LGD is highly dependent upon loan to value ratios, and incorporates estimates for the expense associated with managing the loan through to resolution. LGDs also incorporate an estimate for the loss severity associated with loans where the borrower fails to meet their debt obligation at maturity, such as through a balloon payment or the refinancing of the loan through another lender. External factors that have an impact on LGDs include: changes in the index for CRE pricing, GDP growth rate, unemployment rates and the Moody’s Baa rating corporate debt interest rate spread. LGDs are applied to each loan in the commercial real estate portfolio, and in conjunction with the PD, produce estimates for net cash flows not expected to be collected over the estimated term of the loan.

LGDs for commercial loans are also derived from a third party that has a considerable database of credit related information specific to the financial services industry and the type of loans within this segment, and is used to generate annual default information for commercial loans. These proxy LGDs are dependent upon data inputs such as: credit quality, borrower industry, region, borrower size, and debt seniority. LGDs are then applied to each loan in the commercial portfolio, and in conjunction with the PD, produce estimates for net cash flows not expected to be collected over the estimated term of the loan.

Historical Loss Rates for Retail Loans
The historical loss rate model for retail loans are derived from a third party that has a considerable database of credit related information for retail loans. Key loan level attributes and economic drivers in determining the loss rate for retail loans include FICO scores, vintage, as well as geography, unemployment rates, and changes in consumer real estate prices.

Forecasts

GAAP requires the Company to develop reasonable and supportable forecasts of future conditions, and estimate how those forecasts are expected to impact a borrower’s ability to satisfy their obligation to the Bank and the ultimate collectability of future cash flows over the life of the loan. The Company uses economic scenarios from an independent third party, Moody’s Analytics, in its estimation of a borrower’s ability to repay a loan in future periods. These scenarios are based on past events, current conditions, and the likelihood of future events occurring. These scenarios typically are comprised of: (1) a base-case scenario, (2) an upside scenario, representing slightly better economic conditions than currently experienced, and (3) a downside scenario, representing recessionary conditions. Management periodically evaluates economic scenarios and may decide that a particular economic scenario or a combination of probability-weighted economic scenarios should be used in the Company’s ACL model. The economic scenarios chosen for the model, the extent to which more than one scenario is used, and the weights that are assigned to them, are based on the Company’s estimate of the probability of each scenario occurring, which is based in part on analysis performed by an independent third-party. Economic scenarios chosen, as well as the assumptions within those scenarios, and whether to use a probability-weighted multiple scenario approach, can vary from one period to the next based on changes in current and expected economic conditions, and due to the occurrence of specific events such as the ongoing COVID-19 pandemic. The Company recognizes the non-linearity of credit losses relative to economic performance and thus the Company believes consideration of and, if appropriate under the circumstances, use of multiple probability-weighted economic scenarios is appropriate in estimating credit losses over the forecast period. This approach is based on certain assumptions. The first assumption is that no single forecast of the economy, however detailed or complex, is completely accurate over a reasonable forecast time-frame, and is subject to revisions over time. By considering multiple scenario outcomes
and assigning reasonable probability weightings to them, some of the uncertainty associated with a single scenario approach, the Company believes, is mitigated.

As of March 31, 2021, the Company’s ACL model used three probability-weighted scenarios representing a base-case scenario, an upside scenario, and a downside scenario. The weightings assigned to each scenario were as follows: the base-case scenario, or most likely scenario, was assigned a weighting of 40%, while the upside and downside scenarios were each assigned weightings of 30%. These economic scenarios include the current and estimated future impact associated with the ongoing COVID-19 pandemic. The Company evaluated the weightings of each economic scenario in the current period with the assistance of Moody's Analytics, and determined the current weightings of 40% for the base-case scenario, and 30% for each of the upside and downside scenarios appropriately reflect the likelihood of outcomes for each scenario given the current economic environment. The use of three probability-weighted scenarios in the first quarter of 2021 is consistent with the approach used in the Company’s ACL model during the fourth quarter of 2020.

As of March 31, 2020, and in response to the onset of the COVID-19 pandemic, the Company with the assistance of an independent third party, determined it appropriate to include an economic scenario in its ACL model that was reflective of the estimated economic effects of the pandemic, including the responses to contain the pandemic. This scenario was referred to as the critical pandemic scenario. Additionally, the Company evaluated the weightings of each economic scenario in the first quarter of 2020 with the assistance of an independent third party, and revised those weightings to levels it believed appropriate to reflect the likelihood of outcomes for each scenario given the change in economic environment during the first quarter of 2020. As such, for the three months ended March 31, 2020, the Company’s ACL model incorporated three economic scenarios comprised of: the critical pandemic scenario weighted 30%, the more severe (as compared to the critical pandemic scenario) downside scenario weighted 32.5% and the base-case scenario weighted 37.5%. These weightings were reflective of rapidly changing economic conditions, economic uncertainty and volatility in financial markets due to the onset of the COVID-19 pandemic, and the estimated likelihood that each scenario may occur as of March 31, 2020.

The Company currently forecasts economic conditions over a two-year period, which we believe is a reasonable and supportable period. Beyond the point which the Company can provide for a reasonable and supportable forecast, economic variables revert to their long-term averages. The Company has reflected this reversion over a period of three years in each of its economic scenarios used to generate the overall probability-weighted forecast. Changes in economic forecasts impact the PD, LGD, and EAD for each loan, and therefore influence the amount of future cash flows for each loan the Company does not expect to collect.

The Company derives the economic forecasts it uses in its ACL model from Moody's Analytics that has a large team of economists, data-base managers and operational engineers with a history of producing monthly economic forecasts for over 25 years. The forecasts produced by this third party have been widely used by banks, credit unions, government agencies and real estate developers. These economic forecasts cover all states and metropolitan areas in the Unites States, and reflect changes in economic variables such as: GDP growth, interest rates, employment rates, changes in wages, retail sales, industrial production, metrics associated with the single-family and multifamily housing markets, vacancy rates, changes in equity market prices, and energy markets.

It is important to note that the Company’s ACL model relies on multiple economic variables, which are used under several economic scenarios. Although no one economic variable can fully demonstrate the sensitivity of the ACL calculation to changes in the economic variables used in the model, the Company has identified certain economic variables that have significant influence in the Company’s model for determining the ACL.
As of March 31, 2021, the Company’s ACL model incorporated the following assumptions for key economic variables in the base-case, upside and downside scenarios:

Base-case Scenario:

•CRE Price Index experiences declines throughout 2021, with the estimated annualized rate of decline slowing from approximately -13% in early 2021 to approximately -3% by the end of 2021. This scenario also assumes the CRE Price Index returns to modest levels of growth beginning in the first quarter of 2022, with the rate of growth increasing through the end of 2022.
•U.S. real GDP experiences growth within a range of 6-7% on an annualized basis throughout 2021. This scenario also assumes decelerating growth in real GDP throughout 2022, from the levels estimated for 2021. Growth in real GDP for 2022 under this scenario decelerates from approximately 7% annualized in early 2022 to approximately 2% annualized by the end of 2022.
•U.S. unemployment declining from approximately 6% in early 2021 to approximately 5% by the end of 2021. This scenario also assumes unemployment continues to decline in 2022 from approximately 5% in early 2022 to approximately 4% by the end of 2022.

Upside Scenario:

•CRE Price Index experiences a decline in first half of 2021, and then returning to growth of approximately 5% on an annualized basis during the second half of 2021.
•U.S. real GDP experiences accelerating growth within a range of 5-10% on an annualized basis throughout 2021. This scenario also assumes decelerating growth in real GDP throughout 2022, from the levels estimated for 2021. Growth in real GDP for 2022 under this scenario decelerates from approximately 10% annualized in early 2022 to approximately 1% annualized by the end of 2022.
•U.S. unemployment declining from approximately 6% in early 2021 to approximately 3% by the end of 2021. This scenario also assumes unemployment of 3% throughout all of 2022.

Downside Scenario:

•CRE Price Index experiences accelerating declines throughout 2021. Annualized declines of approximately -13% in Q1 2021 and accelerating to approximately -23% by the end of 2021. For 2022, the CRE Price Index is estimated to continue to decline through Q3 2022, before returning to growth in Q4 2022.
•U.S. real GDP experiences growth of approximately 5% in Q1 2021, followed by decreases of -3% for Q2, -2% for Q3 and -1% for Q4 of 2021. This scenario also assumes modest annualized growth in real GDP in 2022 of approximately 2-3%.
•U.S. unemployment increases throughout 2021 from approximately 6% in early 2021 to approximately 8% by the end of 2021. This scenario also assumes unemployment remains elevated in 2022 at approximately 8%.
Qualitative Adjustments

The Company recognizes that historical information used as the basis for determining future expected credit losses may not always, by themselves, provide a sufficient basis for determining future expected credit losses. The Company, therefore, periodically considers the need for qualitative adjustments to the ACL. Qualitative adjustments may be related to and include, but not be limited to, factors such as: (i) management’s assessment of economic forecasts used in the model and how those forecasts align with management’s overall evaluation of current and expected economic conditions, (ii) organization specific risks such as credit concentrations, collateral specific risks, regulatory risks, and external factors that may ultimately impact credit quality, (iii) potential model limitations such as limitations identified through back-testing, and other limitations associated with factors such as underwriting changes, acquisition of new portfolios and changes in portfolio segmentation, and (iv) management’s overall assessment of the adequacy of the ACL, including an assessment of model data inputs used to determine the ACL. As of March 31, 2021, qualitative adjustments included in the ACL totaled $8.0 million. These adjustments relate to potential limitations in the model, as well as continued uncertainty concerning the strength of the economic recovery. Management determined through additional review that certain key model drivers are potentially underestimating the impact the ongoing COVID-19 pandemic may have on certain segments and classes of the loan portfolio, such as commercial real estate, franchise real estate secured loans, and SBA hotel loans. Management reviews the need for an appropriate level of qualitative adjustments on a quarterly basis, and as such, the amount and allocation of qualitative adjustments may change in future periods.

The following tables 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 periods indicated:

Three Months Ended March 31, 2021
 Beginning ACL Balance  Charge-offs  Recoveries Provision for Credit Losses  Ending
ACL Balance
(Dollars in thousands)
Investor loans secured by real estate
CRE non-owner occupied$49,176 $(154)$— $(3,477)$45,545 
Multifamily62,534 — — 17,281 79,815 
Construction and land12,435 — — 828 13,263 
SBA secured by real estate5,159 (265)— 247 5,141 
Business loans secured by real estate
CRE owner-occupied50,517 — 15 (8,938)41,594 
Franchise real estate secured11,451 — — (575)10,876 
SBA secured by real estate6,567 (98)— (18)6,451 
Commercial loans
Commercial and industrial46,964 (1,279)601 (2,913)43,373 
Franchise non-real estate secured20,525 (156)— (1,466)18,903 
SBA non-real estate secured995 — 2 (107)890 
Retail loans
Single family residential1,204 — — (382)822 
Consumer loans491 — — (165)326 
Totals$268,018 $(1,952)$618 $315 $266,999 
Three Months Ended March 31, 2020
Beginning ACL Balance (1)
Adoption of ASC 326Charge-offsRecoveriesProvision for Credit LossesEnding
ACL Balance
(Dollars in thousands)
Investor loans secured by real estate
CRE non-owner occupied$1,899 $8,423 $(387)$— $5,961 $15,896 
Multifamily729 9,174 — — 4,819 14,722 
Construction and land4,484 (124)— — 4,862 9,222 
SBA secured by real estate1,915 (1,401)— — 421 935 
Business loans secured by real estate
CRE owner-occupied2,781 20,166 — 12 3,834 26,793 
Franchise real estate secured592 5,199 — — 1,712 7,503 
SBA secured by real estate2,119 2,207 (315)71 (38)4,044 
Commercial loans
Commercial and industrial13,857 87 (490)5 2,283 15,742 
Franchise non-real estate secured5,816 9,214 — — 1,586 16,616 
SBA non-real estate secured445 218 (236)4 85 516 
Retail loans
Single family residential655 541 — — (59)1,137 
Consumer loans406 1,982 (8)— (84)2,296 
Totals$35,698 $55,686 $(1,436)$92 $25,382 $115,422 
(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 ending ACL balance is reflective of current expected credit losses, accounted for under ASC 326.

The decrease in the ACL for loans held for investment during the three months ended March 31, 2021 of $1.0 million is reflective of a $315,000 in provision for credit losses and $1.3 million in net charge-offs. The provision for credit losses for the three months ended March 31, 2021 is reflective of continued unfavorable, but improving economic conditions and forecasts used in the Company’s ACL model.

The change in the ACL for the three months ended March 31, 2020 of $79.7 million is reflective of a $55.7 million addition associated with the Company’s adoption of ASC 326 on January 1, 2020, which was recorded through a cumulative effect adjustment to retained earnings, a $25.4 million provision for credit losses on loans, and net charge-offs of $1.3 million. The provision for credit losses for the three months ended March 31, 2020 is reflective of unfavorable changes in economic forecasts used in the Company’s ACL model driven by the COVID-19 pandemic.

Allowance for Credit Losses for Off-Balance Sheet Commitments

The Company maintains an allowance for credit losses on off-balance sheet commitments related to unfunded loans and lines of credit, which is included in other liabilities of the consolidated statements of financial condition. The allowance for off-balance sheet commitments was $32.8 million at March 31, 2021 and $31.1 million at December 31, 2020. The change in the allowance for off-balance sheet commitments can be attributed to a $1.7 million in provision for credit losses during the three months ended March 31, 2021 related primarily to an increase in unfunded lines of credit in conjunction with continued unfavorable, but improving economic conditions and forecasts reflected in the Company’s CECL model.

The allowance for off-balance sheet commitments totaled $11.6 million as of March 31, 2020. The provision for credit losses attributable to unfunded loan commitments was $72,000 for the three month ended March 31, 2020.
The Company applies an expected credit loss estimation methodology for off-balance sheet commitments that is commensurate with the methodology applied to each respective segment of the loan portfolio in determining the ACL for loans held-for-investment. The loss estimation process includes assumptions for the probability that a loan will fund, as well as the expected amount of funding. These assumptions are based on the Company’s own historical internal loan data.

The following tables present PD bands for commercial real estate and commercial loan segments of the loan portfolio as of the dates indicated.

Commercial Real Estate Term Loans by Vintage
20212020201920182017PriorRevolvingRevolving Converted to Term During the PeriodTotal
March 31, 2021(Dollars in thousands)
Investor loans secured by real estate
CRE non-owner-occupied
0% - 5.00%$124,225 $244,225 $447,464 $445,435 $223,077 $927,154 $10,779 $— $2,422,359 
>5.00% - 10.00%— 25,477 9,581 14,151 12,408 73,255 — — 134,872 
Greater than 10%— 2,299 71,735 32,941 43,392 21,639 548 — 172,554 
Multifamily
0% - 5.00%372,435 946,666 1,564,508 763,445 611,026 812,130 1,426 — 5,071,636 
>5.00% - 10.00%32,587 5,858 51,975 17,181 6,602 17,328 — — 131,531 
Greater than 10%— 53,404 12,131 13,368 12,456 15,066 — — 106,425 
Construction and Land
0% - 5.00%12,496 65,447 28,996 1,425 4,081 5,139 1,043 — 118,627 
>5.00% - 10.00%— 7,462 45,561 — 3,785 71 — — 56,879 
Greater than 10%— 3,577 59,440 52,370 4,398 21,167 — — 140,952 
SBA secured by real estate
0% - 5.00%— 498 9,508 12,517 17,476 15,942 — — 55,941 
>5.00% - 10.00%— — — — — — — — — 
Greater than 10%— — 102 — — 338 — — 440 
Total investor loans secured by real estate541,743 1,354,913 2,301,001 1,352,833 938,701 1,909,229 13,796 — 8,412,216 
Business loans secured by real estate
CRE owner-occupied
0% - 5.00%108,753 274,558 358,652 251,081 274,570 588,999 8,946 — 1,865,559 
>5.00% - 10.00%— 11,033 15,015 31,674 30,254 51,484 — — 139,460 
Greater than 10%— — — 5,883 9,043 9,789 250 — 24,965 
Franchise real estate secured
0% - 5.00%23,192 36,483 69,701 58,245 80,716 36,800 — — 305,137 
>5.00% - 10.00%— 7,588 3,218 7,280 1,103 16,037 — — 35,226 
Greater than 10%— 442 — — — — — — 442 
SBA secured by real estate
0% - 5.00%510 3,237 7,517 11,357 11,448 21,384 — — 55,453 
>5.00% - 10.00%— — 70 905 1,694 6,502 — — 9,171 
Greater than 10%— — — 1,347 2,124 5,872 — — 9,343 
Total business loans secured by real estate132,455 333,341 454,173 367,772 410,952 736,867 9,196 — 2,444,756 
Commercial Real Estate Term Loans by Vintage
20212020201920182017PriorRevolvingRevolving Converted to Term During the PeriodTotal
March 31, 2021(Dollars in thousands)
Commercial Loans
Commercial and industrial
0% - 5.00%61,115 76,872 223,574 101,069 182,673 90,115 316,224 1,113 1,052,755 
>5.00% - 10.00%1,507 28,732 31,098 25,613 10,383 16,090 305,405 101 418,929 
Greater than 10%— 8,575 20,849 21,862 2,997 11,807 117,839 485 184,414 
Franchise non-real estate secured
0% - 5.00%15,398 21,160 102,790 78,320 34,932 31,020 — — 283,620 
>5.00% - 10.00%— 6,056 35,273 8,527 8,362 18,588 — — 76,806 
Greater than 10%— — 9,100 5,762 18,397 3,995 1,361 — 38,615 
SBA not secured by real estate
0% - 5.00%72 422 2,212 1,021 1,299 3,230 — — 8,256 
>5.00% - 10.00%— — — 490 1,518 1,102 — — 3,110 
Greater than 10%— — 81 353 1,725 691 692 — 3,542 
Total commercial loans$78,092 $141,817 $424,977 $243,017 $262,286 $176,638 $741,521 $1,699 $2,070,047 

Commercial Real Estate Term Loans by Vintage
20202019201820172016PriorRevolvingRevolving Converted to Term During the PeriodTotal
December 31, 2020(Dollars in thousands)
Investor loans secured by real estate
CRE non-owner-occupied
0% - 5.00%$261,885 $491,522 $431,791 $266,942 $254,527 $763,101 $11,114 $— $2,480,882 
>5.00% - 10.00%4,016 34,360 5,794 10,558 16,961 33,734 — — 105,423 
Greater than 10%— 25,844 11,480 10,517 10,782 29,598 559 — 88,780 
Multifamily
0% - 5.00%950,089 1,610,011 878,233 634,268 349,549 516,452 — — 4,938,602 
>5.00% - 10.00%38,892 59,500 12,181 19,751 10,917 13,606 — — 154,847 
Greater than 10%38,663 9,963 11,339 12,479 3,814 1,229 420 — 77,907 
Construction and Land
0% - 5.00%55,785 40,860 4,604 11,238 — 6,412 784 — 119,683 
>5.00% - 10.00%1,123 41,046 9,197 3,601 — 260 — — 55,227 
Greater than 10%401 62,853 59,512 3,786 20,531 — — — 147,083 
SBA secured by real estate
0% - 5.00%496 10,400 12,558 14,497 7,078 10,032 — — 55,061 
>5.00% - 10.00%— — — 1,012 — — — — 1,012 
Greater than 10%— 158 589 — — 511 — — 1,258 
Total investor loans secured by real estate1,351,350 2,386,517 1,437,278 988,649 674,159 1,374,935 12,877 — 8,225,765 
Commercial Real Estate Term Loans by Vintage
20202019201820172016PriorRevolvingRevolving Converted to Term During the PeriodTotal
December 31, 2020(Dollars in thousands)
Business loans secured by real estate
CRE owner-occupied
0% - 5.00%286,745 367,269 274,512 295,809 202,282 422,614 10,393 246 1,859,870 
>5.00% - 10.00%8,769 42,310 60,222 28,421 23,875 44,855 3,875 — 212,327 
Greater than 10%— 16,096 5,376 7,459 4,263 8,409 250 — 41,853 
Franchise real estate secured
0% - 5.00%37,262 79,926 65,619 96,672 19,046 22,927 — — 321,452 
>5.00% - 10.00%7,587 1,650 3,274 327 5,627 4,093 — — 22,558 
Greater than 10%442 1,512 — — 1,968 — — — 3,922 
SBA secured by real estate
0% - 5.00%3,253 7,637 11,840 15,069 5,707 18,742 — — 62,248 
>5.00% - 10.00%— — 768 989 2,780 4,882 — — 9,419 
Greater than 10%— — 1,384 1,987 1,514 3,043 — — 7,928 
Total business loans secured by real estate344,058 516,400 422,995 446,733 267,062 529,565 14,518 246 2,541,577 
Commercial Loans
Commercial and industrial
0% - 5.00%70,233 205,395 99,178 193,046 36,957 62,682 394,124 5,051 1,066,666 
>5.00% - 10.00%49,883 50,743 35,813 13,427 12,922 13,948 322,123 2,469 501,328 
Greater than 10%7,701 7,540 29,078 4,485 4,574 8,350 136,253 2,859 200,840 
Franchise non-real estate secured
0% - 5.00%21,409 145,392 88,171 38,010 21,956 23,479 — 502 338,919 
>5.00% - 10.00%6,198 15,754 5,454 8,164 18,415 3,626 — — 57,611 
Greater than 10%— 16,836 6,612 18,655 1,638 3,165 1,361 — 48,267 
SBA not secured by real estate
0% - 5.00%407 2,257 910 1,078 441 2,782 — — 7,875 
>5.00% - 10.00%— — 648 1,596 169 1,652 — 259 4,324 
Greater than 10%— 83 357 1,856 340 415 707 — 3,758 
Total commercial loans$155,831 $444,000 $266,221 $280,317 $97,412 $120,099 $854,568 $11,140 $2,229,588 
A significant driver in the ACL for loans in the investor real estate secured and business real estate secured segments is estimated loan to value (“LTV”). The following tables summarize the amortized cost of loans in these segments by current estimated LTV and by year of origination as of the dates indicated:
Term Loans by Vintage
20212020201920182017PriorRevolvingRevolving Converted to Term During the PeriodTotal
March 31, 2021(Dollars in thousands)
Investor loans secured by real estate
CRE non-owner-occupied
55% and below$64,538 $130,003 $213,339 $220,420 $130,687 $709,045 $10,779 — $1,478,811 
>55-65%31,752 116,313 197,381 105,577 130,405 266,760 548 — 848,736 
>65-75%27,935 25,685 97,297 153,854 13,411 44,463 — — 362,645 
Greater than 75%— — 20,763 12,676 4,374 1,780 — — 39,593 
Multifamily
55% and below59,772 219,912 344,043 261,109 231,004 356,028 1,426 — 1,473,294 
>55-65%173,282 389,105 716,453 359,851 211,357 328,477 — — 2,178,525 
>65-75%169,340 396,911 553,451 162,499 185,854 155,480 — — 1,623,535 
Greater than 75%2,628 — 14,667 10,535 1,869 4,539 — — 34,238 
Construction and land
55% and below12,496 76,486 106,181 27,368 12,264 26,377 1,043 — 262,215 
>55-65%— — 19,603 18,590 — — — — 38,193 
>65-75%— — 8,213 7,837 — — — — 16,050 
Greater than 75%— — — — — — — — — 
SBA secured by real estate
55% and below— — 102 645 669 1,088 — — 2,504 
>55-65%— — 2,420 1,633 3,991 5,449 — — 13,493 
>65-75%— — 3,888 4,641 3,477 6,619 — — 18,625 
Greater than 75%— 498 3,200 5,598 9,339 3,124 — — 21,759 
Total investor loans secured by real estate541,743 1,354,913 2,301,001 1,352,833 938,701 1,909,229 13,796 — 8,412,216 
Business loan secured by real estate
CRE owner-occupied
55% and below41,757 100,507 148,303 122,790 173,168 433,778 9,196 — 1,029,499 
>55-65%28,552 64,442 75,112 87,262 101,484 131,991 — — 488,843 
>65-75%17,278 71,694 143,725 72,734 25,938 63,635 — — 395,004 
Greater than 75%21,166 48,948 6,527 5,852 13,277 20,868 — — 116,638 
Franchise real estate secured
55% and below1,884 20,715 9,853 15,109 13,479 25,410 — — 86,450 
>55-65%— 2,666 9,905 14,514 14,248 7,615 — — 48,948 
>65-75%11,298 15,452 42,286 17,909 14,740 16,607 — — 118,292 
Greater than 75%10,010 5,680 10,875 17,993 39,352 3,205 — — 87,115 
SBA secured by real estate
55% and below510 1,813 1,601 5,265 5,442 16,620 — — 31,251 
>55-65%— 247 512 1,740 999 8,073 — — 11,571 
>65-75%— 263 3,129 1,293 3,695 4,824 — — 13,204 
Greater than 75%— 914 2,345 5,311 5,130 4,241 — — 17,941 
Total business loans secured by real estate$132,455 $333,341 $454,173 $367,772 $410,952 $736,867 $9,196 $— $2,444,756 
Term Loans by Vintage
20202019201820172016PriorRevolvingRevolving Converted to Term During the PeriodTotal
December 31, 2020(Dollars in thousands)
Investor loans secured by real estate
CRE non-owner-occupied
55% and below$138,007 $229,272 $182,385 $136,355 $189,848 $588,230 $11,114 $— $1,475,211 
>55-65%101,434 217,210 92,015 130,024 78,470 204,161 559 — 823,873 
>65-75%26,460 102,494 169,878 18,876 13,952 29,506 — — 361,166 
Greater than 75%— 2,750 4,787 2,762 — 4,536 — — 14,835 
Multifamily
55% and below218,833 345,519 294,464 233,997 84,530 269,906 — — 1,447,249 
>55-65%381,737 731,408 381,282 215,170 152,066 189,151 420 — 2,051,234 
>65-75%427,074 583,078 215,389 215,452 127,684 66,457 — — 1,635,134 
Greater than 75%— 19,469 10,618 1,879 — 5,773 — — 37,739 
Construction and land
55% and below57,309 105,308 36,068 18,625 20,531 6,672 784 — 245,297 
>55-65%— 36,113 23,770 — — — — — 59,883 
>65-75%— 3,338 13,475 — — — — — 16,813 
Greater than 75%— — — — — — — — — 
SBA secured by real estate
55% and below— 2,066 649 673 317 778 — — 4,483 
>55-65%— 2,427 1,639 4,008 879 4,354 — — 13,307 
>65-75%— 3,897 3,882 3,482 4,519 1,884 — — 17,664 
Greater than 75%496 2,168 6,977 7,346 1,363 3,527 — — 21,877 
Total investor loans secured by real estate1,351,350 2,386,517 1,437,278 988,649 674,159 1,374,935 12,877 — 8,225,765 
Business loan secured by real estate
CRE owner-occupied
55% and below96,803 160,605 157,868 179,791 131,795 328,188 14,518 246 1,069,814 
>55-65%72,044 91,028 98,176 94,712 65,120 90,548 — — 511,628 
>65-75%71,692 152,920 79,106 43,832 31,303 31,493 — — 410,346 
Greater than 75%54,975 21,122 4,960 13,354 2,202 25,649 — — 122,262 
Franchise real estate secured
55% and below20,801 10,470 13,864 20,956 9,189 16,213 — — 91,493 
>55-65%2,689 9,955 16,001 19,102 6,855 2,333 — — 56,935 
>65-75%19,349 51,719 23,258 9,153 10,597 7,236 — — 121,312 
Greater than 75%2,452 10,944 15,770 47,788 — 1,238 — — 78,192 
SBA secured by real estate
55% and below1,825 1,626 5,332 5,495 3,615 13,582 — — 31,475 
>55-65%246 513 1,795 1,094 3,586 5,448 — — 12,682 
>65-75%264 3,142 1,515 3,968 1,586 4,043 — — 14,518 
Greater than 75%918 2,356 5,350 7,488 1,214 3,594 — — 20,920 
Total business loans secured by real estate$344,058 $516,400 $422,995 $446,733 $267,062 $529,565 $14,518 $246 $2,541,577 
The following tables present the FICO bands, at origination, for the retail segment of the loan portfolio as of the dates indicated:
Term Loans by Vintage
20212020201920182017PriorRevolvingRevolving Converted to Term During the PeriodTotal
(Dollars in thousands)
March 31, 2021
Retail Loans
Single family residential
Greater than 740$6,582 $7,624 $3,480 $10,341 $6,559 $78,694 $15,850 — $129,130 
>680 - 740— — 869 367 4,119 14,654 5,915 — 25,924 
>580 - 680— — — — 491 9,561 863 — 10,915 
Less than 580— — — — — 18,046 34 — 18,080 
Consumer loans
Greater than 7402 47 63 30 19 3,476 531 — 4,168 
>680 - 740— — 32 5 3 459 1,461 — 1,960 
>580 - 680— — 13 — — 90 57 — 160 
Less than 580— — — — — 12 24 — 36 
Total retail loans$6,584 $7,671 $4,457 $10,743 $11,191 $124,992 $24,735 $— $190,373 

Term Loans by Vintage
20202019201820172016PriorRevolvingRevolving Converted to Term During the PeriodTotal
(Dollars in thousands)
December 31, 2020
Retail Loans
Single family residential
Greater than 740$10,794 $6,531 $12,679 $8,846 $28,222 $81,838 $19,588 — $168,498 
>680 - 740— 1,183 1,303 4,732 2,614 15,624 6,685 — 32,141 
>580 - 680— — — 461 3,132 7,473 864 — 11,930 
Less than 580— — — — — 19,970 35 — 20,005 
Consumer loans
Greater than 74052 69 31 22 1 2,609 2,198 — 4,982 
>680 - 740— 35 6 3 — 469 1,227 — 1,740 
>580 - 680— 15 — — 1 95 56 — 167 
Less than 580— — — — — 13 27 — 40 
Total retail loans$10,846 $7,833 $14,019 $14,064 $33,970 $128,091 $30,680 $— $239,503