Loans Receivable and Allowance for Credit Losses (Tables)

12 Months Ended

Dec. 31, 2018

Loans and Leases Receivable Disclosure [Abstract]

Schedule of the composition of Non-PCI and PCI loans

The following table presents the composition of the Company’s non-PCI and PCI loans as of December 31, 2018 and 2017:




($ in thousands)	December 31, 2018									December 31, 2017
($ in thousands)	Non-PCI Loans ⁽¹⁾			PCI Loans ⁽²⁾			Total ⁽¹⁾⁽²⁾			Non-PCI Loans ⁽¹⁾			PCI Loans ⁽²⁾			Total ⁽¹⁾⁽²⁾
Commercial:
C&I	$	12,054,818		$	2,152		$	12,056,970		$	10,685,436		$	11,795		$	10,697,231
CRE	9,284,583			165,252			9,449,835			8,659,209			277,688			8,936,897
Multifamily residential	2,246,506			34,526			2,281,032			1,855,128			61,048			1,916,176
Construction and land	538,752			42			538,794			659,326			371			659,697
Total commercial	24,124,659			201,972			24,326,631			21,859,099			350,902			22,210,001
Consumer:
Single-family residential	5,939,258			97,196			6,036,454			4,528,911			117,378			4,646,289
HELOCs	1,681,979			8,855			1,690,834			1,768,917			14,007			1,782,924
Other consumer	331,270			—			331,270			336,504			—			336,504
Total consumer	7,952,507			106,051			8,058,558			6,634,332			131,385			6,765,717
Total loans held-for-investment	$	32,077,166		$	308,023		$	32,385,189		$	28,493,431		$	482,287		$	28,975,718
Allowance for loan losses	(311,300		)	(22		)	(311,322		)	(287,070		)	(58		)	(287,128		)
Loans held-for-investment, net	$	31,765,866		$	308,001		$	32,073,867		$	28,206,361		$	482,229		$	28,688,590


(1)	Includes net deferred loan fees, unearned fees, unamortized premiums and unaccreted discounts of $(48.9) million and $(34.0) million as of December 31, 2018 and 2017, respectively.


(2)	Includes ASC 310-30 discount of $22.2 million and $35.3 million as of December 31, 2018 and 2017, respectively.

Summary of credit risk rating for non-PCI and PCI loans by portfolio segment

The following tables present the credit risk ratings for non-PCI loans by portfolio segment as of December 31, 2018 and 2017:




($ in thousands)	December 31, 2018
($ in thousands)	Pass/Watch		Special Mention		Substandard		Doubtful		Total Non- PCI Loans
Commercial:
C&I	$	11,644,470	$	260,089	$	139,844	$	10,415	$	12,054,818
CRE	9,144,646		49,705		90,232		—		9,284,583
Multifamily residential	2,215,573		20,551		10,382		—		2,246,506
Construction and land	485,217		19,838		33,697		—		538,752
Total commercial	23,489,906		350,183		274,155		10,415		24,124,659
Consumer:
Single-family residential	5,925,584		6,376		7,298		—		5,939,258
HELOCs	1,669,300		1,576		11,103		—		1,681,979
Other consumer	328,767		1		2,502		—		331,270
Total consumer	7,923,651		7,953		20,903		—		7,952,507
Total	$	31,413,557	$	358,136	$	295,058	$	10,415	$	32,077,166




($ in thousands)	December 31, 2017
($ in thousands)	Pass/Watch		Special Mention		Substandard		Doubtful		Total Non- PCI Loans
Commercial:
C&I	$	10,369,516	$	114,769	$	180,269	$	20,882	$	10,685,436
CRE	8,484,635		65,616		108,958		—		8,659,209
Multifamily residential	1,839,958		—		15,170		—		1,855,128
Construction and land	614,441		4,590		40,295		—		659,326
Total commercial	21,308,550		184,975		344,692		20,882		21,859,099
Consumer:
Single-family residential	4,490,672		16,504		21,735		—		4,528,911
HELOCs	1,744,903		11,900		12,114		—		1,768,917
Other consumer	333,895		111		2,498		—		336,504
Total consumer	6,569,470		28,515		36,347		—		6,634,332
Total	$	27,878,020	$	213,490	$	381,039	$	20,882	$	28,493,431

The following tables present the credit risk ratings for PCI loans by portfolio segment as of December 31, 2018 and 2017:




($ in thousands)	December 31, 2018
($ in thousands)	Pass/Watch		Special Mention		Substandard		Doubtful		Total PCI Loans
Commercial:
C&I	$	1,996	$	—	$	156	$	—	$	2,152
CRE	146,057		—		19,195		—		165,252
Multifamily residential	33,003		—		1,523		—		34,526
Construction and land	42		—		—		—		42
Total commercial	181,098		—		20,874		—		201,972
Consumer:
Single-family residential	95,789		1,021		386		—		97,196
HELOCs	8,314		256		285		—		8,855
Total consumer	104,103		1,277		671		—		106,051
Total ⁽¹⁾	$	285,201	$	1,277	$	21,545	$	—	$	308,023




($ in thousands)	December 31, 2017
($ in thousands)	Pass/Watch		Special Mention		Substandard		Doubtful		Total PCI Loans
Commercial:
C&I	$	10,712	$	57	$	1,026	$	—	$	11,795
CRE	238,605		531		38,552		—		277,688
Multifamily residential	56,720		—		4,328		—		61,048
Construction and land	44		—		327		—		371
Total commercial	306,081		588		44,233		—		350,902
Consumer:
Single-family residential	113,905		1,543		1,930		—		117,378
HELOCs	12,642		—		1,365		—		14,007
Total consumer	126,547		1,543		3,295		—		131,385
Total ⁽¹⁾	$	432,628	$	2,131	$	47,528	$	—	$	482,287


(1)	Loans net of ASC 310-30 discount.

Schedule of aging analysis on non-PCI loans

The following tables present the aging analysis on non-PCI loans as of December 31, 2018 and 2017:




($ in thousands)	December 31, 2018
($ in thousands)	Accruing Loans 30-59 Days Past Due		Accruing Loans 60-89 Days Past Due		Total Accruing Past Due Loans		Nonaccrual Loans Less Than 90 Days Past Due		Nonaccrual Loans 90 or More Days Past Due		Total Nonaccrual Loans		Current Accruing Loans		Total Non- PCI Loans
Commercial:
C&I	$	21,032	$	19,170	$	40,202	$	17,097	$	26,743	$	43,840	$	11,970,776	$	12,054,818
CRE	7,740		—		7,740		3,704		20,514		24,218		9,252,625		9,284,583
Multifamily residential	4,174		—		4,174		1,067		193		1,260		2,241,072		2,246,506
Construction and land	207		—		207		—		—		—		538,545		538,752
Total commercial	33,153		19,170		52,323		21,868		47,450		69,318		24,003,018		24,124,659
Consumer:
Single-family residential	14,645		7,850		22,495		509		4,750		5,259		5,911,504		5,939,258
HELOCs	2,573		1,816		4,389		1,423		7,191		8,614		1,668,976		1,681,979
Other consumer	11		12		23		—		2,502		2,502		328,745		331,270
Total consumer	17,229		9,678		26,907		1,932		14,443		16,375		7,909,225		7,952,507
Total	$	50,382	$	28,848	$	79,230	$	23,800	$	61,893	$	85,693	$	31,912,243	$	32,077,166




($ in thousands)	December 31, 2017
($ in thousands)	Accruing Loans 30-59 Days Past Due		Accruing Loans 60-89 Days Past Due		Total Accruing Past Due Loans		Nonaccrual Loans Less Than 90 Days Past Due		Nonaccrual Loans 90 or More Days Past Due		Total Nonaccrual Loans		Current Accruing Loans		Total Non- PCI Loans
Commercial:
C&I	$	30,964	$	82	$	31,046	$	27,408	$	41,805	$	69,213	$	10,585,177	$	10,685,436
CRE	3,414		466		3,880		5,430		21,556		26,986		8,628,343		8,659,209
Multifamily residential	4,846		14		4,860		1,418		299		1,717		1,848,551		1,855,128
Construction and land	758		—		758		—		3,973		3,973		654,595		659,326
Total commercial	39,982		562		40,544		34,256		67,633		101,889		21,716,666		21,859,099
Consumer:
Single-family residential	13,269		5,355		18,624		6		5,917		5,923		4,504,364		4,528,911
HELOCs	4,286		4,186		8,472		89		3,917		4,006		1,756,439		1,768,917
Other consumer	14		23		37		—		2,491		2,491		333,976		336,504
Total consumer	17,569		9,564		27,133		95		12,325		12,420		6,594,779		6,634,332
Total	$	57,551	$	10,126	$	67,677	$	34,351	$	79,958	$	114,309	$	28,311,445	$	28,493,431

Summary of additions and modifications to non-PCI troubled debt restructurings

The following tables present the additions to non-PCI TDRs for the years ended December 31, 2018, 2017 and 2016:




($ in thousands)	Loans Modified as TDRs During the Year Ended December 31, 2018
($ in thousands)	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment ⁽¹⁾		Financial Impact ⁽²⁾
Commercial:
C&I	8	$	11,366	$	9,520	$	699
CRE	1	$	750	$	752	$	—
Consumer:
Single-family residential	2	$	405	$	391	$	(28	)
HELOCs	2	$	1,546	$	1,418	$	—




($ in thousands)	Loans Modified as TDRs During the Year Ended December 31, 2017
($ in thousands)	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment ⁽¹⁾		Financial Impact ⁽²⁾
Commercial:
C&I	16	$	43,884	$	37,900	$	11,520
CRE	4	$	2,675	$	2,627	$	157
Multifamily residential	1	$	3,655	$	2,969	$	—
Consumer:
HELOCs	1	$	152	$	155	$	—




($ in thousands)	Loans Modified as TDRs During the Year Ended December 31, 2016
($ in thousands)	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment ⁽¹⁾		Financial Impact ⁽²⁾
Commercial:
C&I	18	$	65,991	$	40,405	$	20,574
CRE	6	$	19,275	$	18,824	$	701
Construction and land	1	$	5,522	$	4,883	$	—
Consumer:
Single-family residential	3	$	1,291	$	1,268	$	—
HELOCs	3	$	491	$	382	$	1


(1)	Includes subsequent payments after modification and reflects the balance as of December 31, 2018, 2017 and 2016.


(2)	The financial impact includes increases (decreases) in charge-offs and specific reserves recorded at the modification date.

The following tables present the non-PCI TDR modifications for the years ended December 31, 2018, 2017 and 2016 by modification type:




($ in thousands)	Modification Type During the Year Ended December 31, 2018
($ in thousands)	Principal ⁽¹⁾		Principal and Interest⁽²⁾		Interest Rate Reduction		Interest Deferments		Other		Total
Commercial:
C&I	$	5,472	$	—	$	—	$	—	$	4,048	$	9,520
CRE	—		—		752		—		—		752
Total commercial	5,472		—		752		—		4,048		10,272
Consumer:
Single-family residential	66		—		—		—		325		391
HELOCs	1,353		—		—		—		65		1,418
Total consumer	1,419		—		—		—		390		1,809
Total	$	6,891	$	—	$	752	$	—	$	4,438	$	12,081




($ in thousands)	Modification Type During the Year Ended December 31, 2017
($ in thousands)	Principal ⁽¹⁾		Principal and Interest⁽²⁾		Interest Rate Reduction		Interest Deferments		Other		Total
Commercial:
C&I	$	13,568	$	7,848	$	—	$	—	$	16,484	$	37,900
CRE	2,627		—		—		—		—		2,627
Multifamily residential	2,969		—		—		—		—		2,969
Total commercial	19,164		7,848		—		—		16,484		43,496
Consumer:
HELOCs	—		155		—		—		—		155
Total consumer	—		155		—		—		—		155
Total	$	19,164	$	8,003	$	—	$	—	$	16,484	$	43,651




($ in thousands)	Modification Type During the Year Ended December 31, 2016
($ in thousands)	Principal ⁽¹⁾		Principal and Interest ⁽²⁾		Interest Rate Reduction		Interest Deferments		Other		Total
Commercial:
C&I	$	34,499	$	—	$	5,876	$	30	$	—	$	40,405
CRE	17,750		—		—		—		1,074		18,824
Construction and land	4,883		—		—		—		—		4,883
Total commercial	57,132		—		5,876		30		1,074		64,112
Consumer:
Single-family residential	264		—		797		207		—		1,268
HELOCs	333		—		49		—		—		382
Total consumer	597		—		846		207		—		1,650
Total	$	57,729	$	—	$	6,722	$	237	$	1,074	$	65,762


(1)	Includes forbearance payments, term extensions and principal deferments that modify the terms of the loan from principal and interest payments to interest payments only.


(2)	Includes principal and interest deferments or reductions.

The following table presents information on loans modified as TDRs within the previous 12 months that have subsequently defaulted during the years ended December 31, 2018, 2017 and 2016, and were still in default at the respective period end:




($ in thousands)	Loans Modified as TDRs that Subsequently Defaulted During the Year Ended December 31,
	2018			2017			2016
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
Commercial:
C&I	4	$	1,890	3	$	8,659	—	$	—
CRE	1	$	186	—	$	—	2	$	3,150
Construction and land	—	$	—	—	$	—	1	$	4,883
Consumer:
HELOCs	1	$	150	—	$	—	—	$	—

Summary of non-PCI impaired loans

The following tables present information on non-PCI impaired loans as of December 31, 2018 and 2017:




($ in thousands)	December 31, 2018
($ in thousands)	Unpaid Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance
Commercial:
C&I	$	82,963	$	48,479	$	8,609	$	57,088	$	1,219
CRE	36,426		28,285		2,067		30,352		208
Multifamily residential	6,031		2,949		2,611		5,560		75
Total commercial	125,420		79,713		13,287		93,000		1,502
Consumer:
Single-family residential	14,670		2,552		10,908		13,460		34
HELOCs	10,035		5,547		4,409		9,956		5
Other consumer	2,502		—		2,502		2,502		2,491
Total consumer	27,207		8,099		17,819		25,918		2,530
Total non-PCI impaired loans	$	152,627	$	87,812	$	31,106	$	118,918	$	4,032




($ in thousands)	December 31, 2017
($ in thousands)	Unpaid Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance
Commercial:
C&I	$	130,773	$	36,086	$	62,599	$	98,685	$	16,094
CRE	41,248		28,699		6,857		35,556		684
Multifamily residential	11,164		8,019		2,617		10,636		88
Construction and land	4,781		3,973		—		3,973		—
Total commercial	187,966		76,777		72,073		148,850		16,866
Consumer:
Single-family residential	15,501		—		14,338		14,338		534
HELOCs	5,484		2,287		2,921		5,208		4
Other consumer	2,491		—		2,491		2,491		2,491
Total consumer	23,476		2,287		19,750		22,037		3,029
Total non-PCI impaired loans	$	211,442	$	79,064	$	91,823	$	170,887	$	19,895

Schedule of average recorded investment and amount of interest income on non-PCI impaired loans

The following table presents the average recorded investment and interest income recognized on non-PCI impaired loans for the years ended December 31, 2018, 2017 and 2016:




($ in thousands)	Year Ended December 31,
	2018				2017				2016
	Average Recorded Investment		Recognized Interest Income ⁽¹⁾		Average Recorded Investment		Recognized Interest Income ⁽¹⁾		Average Recorded Investment		Recognized Interest Income ⁽¹⁾
Commercial:
C&I	$	143,430	$	1,046	$	110,662	$	1,517	$	148,986	$	2,612
CRE	35,049		491		36,003		578		47,064		1,253
Multifamily residential	11,742		249		11,455		422		15,763		302
Construction and land	3,973		—		4,382		—		6,388		34
Total commercial	194,194		1,786		162,502		2,517		218,201		4,201
Consumer:
Single-family residential	22,350		474		14,994		417		14,323		447
HELOCs	14,134		70		5,494		55		3,703		63
Other consumer	2,502		—		2,142		—		—		—
Total consumer	38,986		544		22,630		472		18,026		510
Total non-PCI impaired loans	$	233,180	$	2,330	$	185,132	$	2,989	$	236,227	$	4,711


(1)	Includes interest recognized on accruing non-PCI TDRs. Interest payments received on nonaccrual non-PCI loans are reflected as a reduction to principal, not as interest income.

Summary of the activity in the allowance for credit losses

The following table presents a summary of activities in the allowance for loan losses by portfolio segment for the years ended December 31, 2018, 2017 and 2016:




($ in thousands)	Year Ended December 31,
($ in thousands)	2018			2017			2016
Non-PCI Loans
Allowance for non-PCI loans, beginning of period	$	287,070		$	260,402		$	264,600
Provision for loan losses on non-PCI loans	65,043			49,129			31,959
Gross charge-offs:
Commercial:
C&I	(59,244		)	(38,118		)	(47,739		)
CRE	—			—			(464		)
Multifamily residential	—			(635		)	(29		)
Construction and land	—			(149		)	(117		)
Consumer:
Single-family residential	(1		)	(1		)	(137		)
HELOCs	—			(55		)	(9		)
Other consumer	(188		)	(17		)	(13		)
Total gross charge-offs	(59,433		)	(38,975		)	(48,508		)
Gross recoveries:
Commercial:
C&I	10,417			11,371			9,003
CRE	5,194			2,111			1,488
Multifamily residential	1,757			1,357			1,476
Construction and land	740			259			203
Consumer:
Single-family residential	1,214			546			401
HELOCs	38			24			7
Other consumer	3			152			323
Total gross recoveries	19,363			15,820			12,901
Net charge-offs	(40,070		)	(23,155		)	(35,607		)
Foreign currency translation adjustments	(743		)	694			(550		)
Allowance for non-PCI loans, end of period	311,300			287,070			260,402
PCI Loans
Allowance for PCI loans, beginning of period	58			118			359
Reversal of loan losses on PCI loans	(36		)	(60		)	(241		)
Allowance for PCI loans, end of period	22			58			118
Allowance for loan losses	$	311,322		$	287,128		$	260,520

The following table presents a summary of activities in the allowance for unfunded credit reserves for the years ended December 31, 2018, 2017 and 2016:




($ in thousands)	Year Ended December 31,
($ in thousands)	2018			2017			2016
Allowance for unfunded credit reserves, beginning of period	$	13,318		$	16,121		$	20,360
Reversal of unfunded credit reserves	(752		)	(2,803		)	(4,239		)
Allowance for unfunded credit reserves, end of period	$	12,566		$	13,318		$	16,121

Allowance for loan losses and recorded investments by portfolio segment and impairment methodology

The following tables present the Company’s allowance for loan losses and recorded investments by portfolio segment and impairment methodology as of December 31, 2018 and 2017:




($ in thousands)	December 31, 2018
	Commercial								Consumer						Total
	C&I		CRE		Multifamily Residential		Construction and Land		Single-Family Residential		HELOCs		Other Consumer		Total
Allowance for loan losses
Individually evaluated for impairment	$	1,219	$	208	$	75	$	—	$	34	$	5	$	2,491	$	4,032
Collectively evaluated for impairment	190,121		38,823		19,208		20,282		31,306		5,769		1,759		307,268
Acquired with deteriorated credit quality	—		22		—		—		—		—		—		22
Total	$	191,340	$	39,053	$	19,283	$	20,282	$	31,340	$	5,774	$	4,250	$	311,322
Recorded investment in loans
Individually evaluated for impairment	$	57,088	$	30,352	$	5,560	$	—	$	13,460	$	9,956	$	2,502	$	118,918
Collectively evaluated for impairment	11,997,730		9,254,231		2,240,946		538,752		5,925,798		1,672,023		328,768		31,958,248
Acquired with deteriorated credit quality ⁽¹⁾	2,152		165,252		34,526		42		97,196		8,855		—		308,023
Total ⁽¹⁾	$	12,056,970	$	9,449,835	$	2,281,032	$	538,794	$	6,036,454	$	1,690,834	$	331,270	$	32,385,189




($ in thousands)	December 31, 2017
	Commercial								Consumer						Total
	C&I		CRE		Multifamily Residential		Construction and Land		Single-Family Residential		HELOCs		Other Consumer		Total
Allowance for loan losses
Individually evaluated for impairment	$	16,094	$	684	$	88	$	—	$	534	$	4	$	2,491	$	19,895
Collectively evaluated for impairment	146,964		40,495		19,021		26,881		25,828		7,350		636		267,175
Acquired with deteriorated credit quality	—		58		—		—		—		—		—		58
Total	$	163,058	$	41,237	$	19,109	$	26,881	$	26,362	$	7,354	$	3,127	$	287,128
Recorded investment in loans
Individually evaluated for impairment	$	98,685	$	35,556	$	10,636	$	3,973	$	14,338	$	5,208	$	2,491	$	170,887
Collectively evaluated for impairment	10,586,751		8,623,653		1,844,492		655,353		4,514,573		1,763,709		334,013		28,322,544
Acquired with deteriorated credit quality ⁽¹⁾	11,795		277,688		61,048		371		117,378		14,007		—		482,287
Total ⁽¹⁾	$	10,697,231	$	8,936,897	$	1,916,176	$	659,697	$	4,646,289	$	1,782,924	$	336,504	$	28,975,718


(1)	Loans net of ASC 310-30 discount

Summary of changes in the accretable yield for the PCI loans

The following table presents the changes in accretable yield on PCI loans for the years ended December 31, 2018, 2017 and 2016:




($ in thousands)	Year Ended December 31,
($ in thousands)	2018			2017			2016
Accretable yield for PCI loans, beginning of period	$	101,977		$	136,247		$	214,907
Accretion	(34,662		)	(42,487		)	(68,708		)
Changes in expected cash flows	7,555			8,217			(9,952		)
Accretable yield for PCI loans, end of period	$	74,870		$	101,977		$	136,247

Schedule of loan securitization, loan purchases into held-for-investment portfolio, reclassification of loans held-for-investment to/from held-for-sale, and sales

The following tables present information on loan securitization, loan purchases into held-for-investment portfolio, reclassification of loans held-for-investment to/from held-for-sale, and sales during the years ended December 31, 2018, 2017 and 2016:




($ in thousands)	Year Ended December 31, 2018
	Commercial								Consumer
	C&I		CRE		Multifamily Residential		Construction and Land		Single-Family Residential		HELOCs		Other Consumer		Total
Loans transferred from held-for-investment to held-for-sale ⁽¹⁾	$	404,321	$	62,291	$	—	$	—	$	14,981	$	—	$	—	$	481,593
Loans transferred from held-for-sale to held-for-investment	$	2,306	$	—	$	—	$	—	$	—	$	—	$	—	$	2,306
Sales ^(2)(3)(4)	$	413,844	$	62,291	$	—	$	—	$	34,966	$	—	$	—	$	511,101
Purchases ⁽⁶⁾	$	525,767	$	—	$	7,389	$	—	$	63,781	$	—	$	—	$	596,937




($ in thousands)	Year Ended December 31, 2017
	Commercial								Consumer
	C&I		CRE		Multifamily Residential		Construction and Land		Single-Family Residential		HELOCs		Other Consumer		Total
Loans transferred from held-for-investment to held-for-sale ⁽¹⁾	$	476,644	$	52,217	$	531	$	1,609	$	249	$	—	$	3,706	$	534,956
Loans of DCB branches transferred from held-for-investment to held-for-sale (included in Branch assets held-for-sale) ⁽¹⁾	$	17,590	$	36,783	$	12,448	$	241	$	6,416	$	4,309	$	345	$	78,132
Sales ^(2)(3)(4)	$	476,644	$	52,217	$	531	$	1,609	$	21,058	$	—	$	25,905	$	577,964
Purchases ⁽⁶⁾	$	503,359	$	—	$	2,311	$	—	$	29,060	$	—	$	—	$	534,730




($ in thousands)	Year Ended December 31, 2016
	Commercial								Consumer
	C&I		CRE		Multifamily Residential		Construction and Land		Single-Family Residential		HELOCs		Other Consumer		Total
Loans transferred from held-for-investment to held-for-sale ⁽¹⁾	$	434,137	$	110,927	$	269,791	$	4,245	$	—	$	—	$	—	$	819,100
Loans transferred from held-for-sale to held-for-investment	$	—	$	—	$	4,943	$	—	$	—	$	—	$	—	$	4,943
Sales ^(2)(3)(4)	$	434,137	$	110,927	$	61,268	$	4,245	$	18,092	$	—	$	—	$	628,669
Securitization of loans held-for-investment⁽⁵⁾	$	—	$	—	$	201,675	$	—	$	—	$	—	$	—	$	201,675
Purchases ⁽⁶⁾⁽⁷⁾	$	646,793	$	—	$	5,658	$	—	$	488,577	$	—	$	—	$	1,141,028


(1)	The Company recorded $14.6 million, $473 thousand and $1.9 million in write-downs to the allowance for loan losses related to loans transferred from held-for-investment to held-for-sale for the years ended December 31, 2018, 2017 and 2016, respectively.

(2)

Includes originated loans sold of $309.7 million, $178.2 million and $369.6 million for the years ended December 31, 2018, 2017 and 2016, respectively. Originated loans sold were primarily comprised of C&I loans for the year ended December 31, 2018; C&I, CRE and single-family residential loans for the year ended December 31, 2017; and C&I, CRE and multifamily residential loans for the year ended December 31, 2016.


(3)	Includes purchased loans sold in the secondary market of $201.4 million, $399.8 million and $259.1 million for the years ended December 31, 2018, 2017 and 2016, respectively.

(4)

Net gains on sales of loans, excluding the lower of cost or fair value adjustments, were $6.6 million, $8.9 million and $10.6 million for the years ended December 31, 2018, 2017 and 2016, respectively. No lower of cost or fair value adjustments were recorded for the year ended December 31, 2018. In comparison, lower of cost or fair value adjustments of $61 thousand and $5.6 million for the years ended December 31, 2017 and 2016, respectively, were recorded in Net gains on sales of loans on the Consolidated Statement of Income.


(5)	Represents multifamily residential loans securitized during the first quarter of 2016 that resulted in net gains of $1.1 million, mortgage servicing rights of $641 thousand and held-to-maturity investment security of $160.1 million.


(6)	C&I loan purchases for each of the year ended December 31, 2018, 2017 and 2016 were mainly comprised of C&I syndicated loans.


(7)	The higher loan purchases for the year ended December 31, 2016 was mainly due to $488.3 million of single-family residential loans purchased for CRA purposes.