The Company’s held-for-investment loan portfolio includes originated and purchased loans. Originated and purchased loans with no evidence of credit deterioration at their acquisition date are referred to collectively as non-PCI loans. PCI loans are loans acquired with evidence of credit deterioration since their origination and for which it is probable at the acquisition date that the Company would be unable to collect all contractually required payments. PCI loans are accounted for under ASC Subtopic 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality. The Company has elected to account for PCI loans on a pool level basis under ASC 310-30 at the time of acquisition.




($ in thousands)	December 31, 2019								December 31, 2018
($ 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	$	12,149,121		$	1,810	$	12,150,931		$	12,054,818		$	2,152		$	12,056,970
CRE:
CRE	10,165,247			113,201		10,278,448			9,097,165			163,034			9,260,199
Multifamily residential	2,834,212			22,162		2,856,374			2,433,924			36,744			2,470,668
Construction and land	628,459			40		628,499			538,752			42			538,794
Total CRE	13,627,918			135,403		13,763,321			12,069,841			199,820			12,269,661
Total commercial	25,777,039			137,213		25,914,252			24,124,659			201,972			24,326,631
Consumer:
Residential mortgage:
Single-family residential	7,028,979			79,611		7,108,590			5,939,258			97,196			6,036,454
HELOCs	1,466,736			6,047		1,472,783			1,681,979			8,855			1,690,834
Total residential mortgage	8,495,715			85,658		8,581,373			7,621,237			106,051			7,727,288
Other consumer	282,914			—		282,914			331,270			—			331,270
Total consumer	8,778,629			85,658		8,864,287			7,952,507			106,051			8,058,558
Total loans held-for-investment	$	34,555,668		$	222,871	$	34,778,539		$	32,077,166		$	308,023		$	32,385,189
Allowance for loan losses	(358,287		)	—		(358,287		)	(311,300		)	(22		)	(311,322		)
Loans held-for-investment, net	$	34,197,381		$	222,871	$	34,420,252		$	31,765,866		$	308,001		$	32,073,867

The C&I loan portfolio, which is comprised of commercial business and trade finance loans, provides financing to businesses in a wide spectrum of industries. The CRE loan portfolio consists of income producing real estate loans that are either owner occupied, or non-owner occupied where 50% or more of the debt service for the loan is primarily provided by unaffiliated rental income from a third party. The multifamily residential loan portfolio is largely comprised of loans secured by residential properties with five or more units in the Bank’s primary lending areas. Construction and land loans mainly provide construction financing for hotels, offices and industrial projects and the purchase of land.

In the consumer portfolio, the Company offers single-family residential loans and HELOCs through a variety of mortgage loan programs. A substantial number of these loans are originated through a reduced documentation loan program, in which a substantial down payment is required, resulting in a low loan-to-value ratio at origination, typically 60% or less. The Company is in a first lien position for many of these reduced documentation single-family residential loans and HELOCs. These loans have historically experienced low delinquency and default rates. Other consumer loans are mainly comprised of insurance premium financing loans.

All loans are subject to the Company’s credit review and monitoring. For the commercial portfolio, loans are risk rated based on an analysis of the current state of the borrower’s payment performance or delinquency, repayment sources, financial and liquidity factors that include industry and geographic considerations. For the majority of the consumer portfolio, payment performance or delinquency is the driving indicator for the risk ratings.

For the Company’s internal credit risk ratings, each individual loan is given a risk rating of 1 through 10. Loans risk-rated 1 through 5 are assigned an internal risk rating of “Pass”, with loans risk-rated 1 being fully secured by cash or U.S. government securities. Pass loans have sufficient sources of repayment in order to repay the loan in full in accordance with all terms and conditions. Loans risk-rated 6 are loans that have potential weaknesses that warrant closer attention by management and are assigned an internal risk rating of “Special Mention”. Loans risk-rated 7 and 8 are loans that have well-defined weaknesses that may jeopardize the full and timely repayment of the loan and are assigned an internal risk rating of “Substandard”. Loans risk-rated 9 are loans that have insufficient sources of repayment and a high probability of loss and are assigned an internal risk rating of “Doubtful”. Loans risk-rated 10 are loans that are uncollectable and of such little value that they are no longer considered bankable assets and are assigned an internal risk rating of “Loss”. These internal risk ratings are reviewed routinely and adjusted based on changes in the borrowers’ financial status and the loans’ collectability.




($ in thousands)	December 31, 2019
($ in thousands)	Pass		Special Mention		Substandard		Doubtful		Total Non- PCI Loans
Commercial:
C&I	$	11,423,094	$	406,543	$	302,509	$	16,975	$	12,149,121
CRE:
CRE	10,003,749		83,683		77,815		—		10,165,247
Multifamily residential	2,806,475		20,406		7,331		—		2,834,212
Construction and land	603,447		—		25,012		—		628,459
Total CRE	13,413,671		104,089		110,158		—		13,627,918
Total commercial	24,836,765		510,632		412,667		16,975		25,777,039
Consumer:
Residential mortgage:
Single-family residential	7,012,522		2,278		14,179		—		7,028,979
HELOCs	1,453,207		2,787		10,742		—		1,466,736
Total residential mortgage	8,465,729		5,065		24,921		—		8,495,715
Other consumer	280,392		5		2,517		—		282,914
Total consumer	8,746,121		5,070		27,438		—		8,778,629
Total	$	33,582,886	$	515,702	$	440,105	$	16,975	$	34,555,668




($ 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:
CRE	8,957,228		49,705		90,232		—		9,097,165
Multifamily residential	2,402,991		20,551		10,382		—		2,433,924
Construction and land	485,217		19,838		33,697		—		538,752
Total CRE	11,845,436		90,094		134,311		—		12,069,841
Total commercial	23,489,906		350,183		274,155		10,415		24,124,659
Consumer:
Residential mortgage:
Single-family residential	5,925,584		6,376		7,298		—		5,939,258
HELOCs	1,669,300		1,576		11,103		—		1,681,979
Total residential mortgage	7,594,884		7,952		18,401		—		7,621,237
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, 2019
($ in thousands)	Pass		Special Mention		Substandard		Doubtful		Total PCI Loans
Commercial:
C&I	$	1,810	$	—	$	—	$	—	$	1,810
CRE:
CRE	102,257		—		10,944		—		113,201
Multifamily residential	22,162		—		—		—		22,162
Construction and land	40		—		—		—		40
Total CRE	124,459		—		10,944		—		135,403
Total commercial	126,269		—		10,944		—		137,213
Consumer:
Residential mortgage:
Single-family residential	79,517		—		94		—		79,611
HELOCs	5,849		—		198		—		6,047
Total residential mortgage	85,366		—		292		—		85,658
Total consumer	85,366		—		292		—		85,658
Total ⁽¹⁾	$	211,635	$	—	$	11,236	$	—	$	222,871




($ 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:
CRE	143,839		—		19,195		—		163,034
Multifamily residential	35,221		—		1,523		—		36,744
Construction and land	42		—		—		—		42
Total CRE	179,102		—		20,718		—		199,820
Total commercial	181,098		—		20,874		—		201,972
Consumer:
Residential mortgage:
Single-family residential	95,789		1,021		386		—		97,196
HELOCs	8,314		256		285		—		8,855
Total residential mortgage	104,103		1,277		671		—		106,051
Total consumer	104,103		1,277		671		—		106,051
Total ⁽¹⁾	$	285,201	$	1,277	$	21,545	$	—	$	308,023

Non-PCI loans that are 90 or more days past due are generally placed on nonaccrual status, unless the loan is well-collateralized or guaranteed by government agencies, and in the process of collection. Non-PCI loans that are less than 90 days past due but have identified deficiencies, such as when the full collection of principal or interest becomes uncertain, are also placed on nonaccrual status. The following tables present the aging analysis on non-PCI loans as of December 31, 2019 and 2018:




($ in thousands)	December 31, 2019
($ 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	$	31,121	$	17,034	$	48,155	$	31,084	$	43,751	$	74,835	$	12,026,131	$	12,149,121
CRE:
CRE	22,830		1,977		24,807		540		15,901		16,441		10,123,999		10,165,247
Multifamily residential	198		531		729		534		285		819		2,832,664		2,834,212
Construction and land	—		—		—		—		—		—		628,459		628,459
Total CRE	23,028		2,508		25,536		1,074		16,186		17,260		13,585,122		13,627,918
Total commercial	54,149		19,542		73,691		32,158		59,937		92,095		25,611,253		25,777,039
Consumer:
Residential mortgage:
Single-family residential	15,443		5,074		20,517		1,964		12,901		14,865		6,993,597		7,028,979
HELOCs	4,273		2,791		7,064		1,448		9,294		10,742		1,448,930		1,466,736
Total residential mortgage	19,716		7,865		27,581		3,412		22,195		25,607		8,442,527		8,495,715
Other consumer	6		5		11		—		2,517		2,517		280,386		282,914
Total consumer	19,722		7,870		27,592		3,412		24,712		28,124		8,722,913		8,778,629
Total	$	73,871	$	27,412	$	101,283	$	35,570	$	84,649	$	120,219	$	34,334,166	$	34,555,668




($ 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:
CRE	7,740		—		7,740		3,704		20,514		24,218		9,065,207		9,097,165
Multifamily residential	4,174		—		4,174		1,067		193		1,260		2,428,490		2,433,924
Construction and land	207		—		207		—		—		—		538,545		538,752
Total CRE	12,121		—		12,121		4,771		20,707		25,478		12,032,242		12,069,841
Total commercial	33,153		19,170		52,323		21,868		47,450		69,318		24,003,018		24,124,659
Consumer:
Residential mortgage:
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
Total residential mortgage	17,218		9,666		26,884		1,932		11,941		13,873		7,580,480		7,621,237
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

PCI loans are excluded from the above aging analysis tables as the Company has elected to account for these loans on a pool level basis under ASC 310-30 at the time of acquisition. Refer to the discussion on PCI loans within this note for additional details on interest income recognition. As of December 31, 2019 and 2018, PCI loans on nonaccrual status totaled $297 thousand and $4.0 million, respectively.

The Company commences the foreclosure process on consumer mortgage loans when a borrower becomes 120 days delinquent in accordance with Consumer Finance Protection Bureau Guidelines. As of December 31, 2019 and 2018, consumer mortgage loans of $7.2 million and $3.0 million, respectively, were secured by residential real estate properties, for which formal foreclosure proceedings were in process in accordance with local requirements of the applicable jurisdictions. As of both December 31, 2019 and 2018, no foreclosed residential real estate property was included in total net OREO of $125 thousand and $133 thousand, respectively.

TDRs are individually evaluated and the type of restructuring is selected based on the loan type and the circumstances of the borrower’s financial difficulty. A TDR is a modification of the terms of a loan when the Company, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower that it would not have otherwise considered.

The following tables present the additions to non-PCI TDRs for the years ended December 31, 2019, 2018 and 2017:




($ in thousands)	Loans Modified as TDRs During the Year Ended December 31, 2019
($ in thousands)	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment ⁽¹⁾		Financial Impact ⁽²⁾
Commercial:
C&I	8	$	95,742	$	71,332	$	8,004
CRE:
Construction and land	1	19,696		19,691		—
Total CRE	1	19,696		19,691		—
Total commercial	9	$	115,438	$	91,023	$	8,004
Consumer:
Residential mortgage:
Single-family residential	2	$	1,123	$	1,098	$	2
HELOCs	2	539		528		—
Total residential mortgage	4	1,662		1,626		2
Total consumer	4	$	1,662	$	1,626	$	2




($ 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:
CRE	1	750		752		—
Total CRE	1	750		752		—
Total commercial	9	$	12,116	$	10,272	$	699
Consumer:
Residential mortgage:
Single-family residential	2	$	405	$	391	$	(28	)
HELOCs	2	1,546		1,418		—
Total residential mortgage	4	1,951		1,809		(28		)
Total consumer	4	$	1,951	$	1,809	$	(28	)




($ 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:
CRE	4	2,675		2,627		157
Multifamily residential	1	3,655		2,969		—
Total CRE	5	6,330		5,596		157
Total commercial	21	$	50,214	$	43,496	$	11,677
Consumer:
Residential mortgage:
HELOCs	1	$	152	$	155	$	—
Total residential mortgage	1	152		155		—
Total consumer	1	$	152	$	155	$	—




($ in thousands)	Modification Type During the Year Ended December 31, 2019
($ in thousands)	Principal ⁽¹⁾		Principal and Interest⁽²⁾		Interest Rate Reduction		Other ⁽³⁾		Total
Commercial:
C&I	$	31,611	$	—	$	—	$	39,721	$	71,332
CRE:
Construction and land	—		—		19,691		—		19,691
Total CRE	—		—		19,691		—		19,691
Total commercial	31,611		—		19,691		39,721		91,023
Consumer:
Residential mortgage:
Single-family residential	—		1,098		—		—		1,098
HELOCs	—		397		—		131		528
Total residential mortgage	—		1,495		—		131		1,626
Total consumer	—		1,495		—		131		1,626
Total	$	31,611	$	1,495	$	19,691	$	39,852	$	92,649




($ in thousands)	Modification Type During the Year Ended December 31, 2018
($ in thousands)	Principal ⁽¹⁾		Principal and Interest⁽²⁾		Interest Rate Reduction		Other⁽³⁾		Total
Commercial:
C&I	$	5,472	$	—	$	—	$	4,048	$	9,520
CRE:
CRE	—		—		752		—		752
Total CRE	—		—		752		—		752
Total commercial	5,472		—		752		4,048		10,272
Consumer:
Residential mortgage:
Single-family residential	66		—		—		325		391
HELOCs	1,353		—		—		65		1,418
Total residential mortgage	1,419		—		—		390		1,809
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		Other ⁽³⁾		Total
Commercial:
C&I	$	13,568	$	7,848	$	—	$	16,484	$	37,900
CRE:
CRE	2,627		—		—		—		2,627
Multifamily residential	2,969		—		—		—		2,969
Total CRE	5,596		—		—		—		5,596
Total commercial	19,164		7,848		—		16,484		43,496
Consumer:
Residential mortgage:
HELOCs	—		155		—		—		155
Total residential mortgage	—		155		—		—		155
Total consumer	—		155		—		—		155
Total	$	19,164	$	8,003	$	—	$	16,484	$	43,651

Subsequent to restructuring, if a TDR that becomes delinquent, generally beyond 90 days past due, it is considered to be in default. TDRs are individually evaluated for impairment under the specific reserve methodology, subsequent defaults do not generally have a significant additional impact on the allowance for loan losses. The following table presents information on loans for which a subsequent default occurred during the years ended December 31, 2019, 2018 and 2017, that had been modified as TDR within 12 months or less of its default, 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,
	2019			2018			2017
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
Commercial:
C&I	3	$	13,112	4	$	1,890	3	$	8,659
CRE:
CRE	—	$	—	1	$	186	—	$	—
Total CRE	—	$	—	1	$	186	—	$	—
Consumer:
Residential mortgage:
HELOCs	—	$	—	1	$	150	—	$	—
Total residential mortgage	—	$	—	1	$	150	—	$	—




($ in thousands)	December 31, 2019
($ in thousands)	Unpaid Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance
Commercial:
C&I	$	174,656	$	73,956	$	40,086	$	114,042	$	2,881
CRE:
CRE	27,601		20,098		1,520		21,618		97
Multifamily residential	4,965		1,371		3,093		4,464		55
Construction and land	19,696		19,691		—		19,691		—
Total CRE	52,262		41,160		4,613		45,773		152
Total commercial	226,918		115,116		44,699		159,815		3,033
Consumer:
Residential mortgage:
Single-family residential	23,626		8,507		13,704		22,211		35
HELOCs	13,711		6,125		7,449		13,574		8
Total residential mortgage	37,337		14,632		21,153		35,785		43
Other consumer	2,517		—		2,517		2,517		2,517
Total consumer	39,854		14,632		23,670		38,302		2,560
Total non-PCI impaired loans	$	266,772	$	129,748	$	68,369	$	198,117	$	5,593




($ 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:
CRE	36,426		28,285		2,067		30,352		208
Multifamily residential	6,031		2,949		2,611		5,560		75
Total CRE	42,457		31,234		4,678		35,912		283
Total commercial	125,420		79,713		13,287		93,000		1,502
Consumer:
Residential mortgage:
Single-family residential	14,670		2,552		10,908		13,460		34
HELOCs	10,035		5,547		4,409		9,956		5
Total residential mortgage	24,705		8,099		15,317		23,416		39
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)	Year Ended December 31,
	2019				2018				2017
	Average Recorded Investment		Recognized Interest Income ⁽¹⁾		Average Recorded Investment		Recognized Interest Income ⁽¹⁾		Average Recorded Investment		Recognized Interest Income ⁽¹⁾
Commercial:
C&I	$	248,619	$	2,932	$	143,430	$	1,046	$	110,662	$	1,517
CRE:
CRE	33,046		464		35,049		491		36,003		578
Multifamily residential	6,116		228		11,742		249		11,455		422
Construction and land	19,691		68		3,973		—		4,382		—
Total CRE	58,853		760		50,764		740		51,840		1,000
Total commercial	307,472		3,692		194,194		1,786		162,502		2,517
Consumer:
Residential mortgage:
Single-family residential	37,315		496		22,350		474		14,994		417
HELOCs	22,851		130		14,134		70		5,494		55
Total residential mortgage	60,166		626		36,484		544		20,488		472
Other consumer	2,552		—		2,502		—		2,142		—
Total consumer	62,718		626		38,986		544		22,630		472
Total non-PCI impaired loans	$	370,190	$	4,318	$	233,180	$	2,330	$	185,132	$	2,989




($ in thousands)	Year Ended December 31,
	2019			2018			2017
Non-PCI Loans
Allowance for non-PCI loans, beginning of period	$	311,300		$	287,070		$	260,402
Provision for loan losses on non-PCI loans	100,115			65,043			49,129
Gross charge-offs:
Commercial:
C&I	(73,985		)	(59,244		)	(38,118		)
CRE:
CRE	(1,021		)	—			—
Multifamily residential	—			—			(635		)
Construction and land	—			—			(149		)
Total CRE	(1,021		)	—			(784		)
Consumer:
Residential mortgage:
Single-family residential	(11		)	(1		)	(1		)
HELOCs	—			—			(55		)
Total residential mortgage	(11		)	(1		)	(56		)
Other consumer	(50		)	(188		)	(17		)
Total gross charge-offs	(75,067		)	(59,433		)	(38,975		)
Gross recoveries:
Commercial:
C&I	14,501			10,417			11,371
CRE:
CRE	5,209			5,194			2,111
Multifamily residential	1,856			1,757			1,357
Construction and land	536			740			259
Total CRE	7,601			7,691			3,727
Consumer:
Residential mortgage:
Single-family residential	136			1,214			546
HELOCs	7			38			24
Total residential mortgage	143			1,252			570
Other consumer	19			3			152
Total gross recoveries	22,264			19,363			15,820
Net charge-offs	(52,803		)	(40,070		)	(23,155		)
Foreign currency translation adjustments	(325		)	(743		)	694
Allowance for non-PCI loans, end of period	358,287			311,300			287,070
PCI Loans
Allowance for PCI loans, beginning of period	22			58			118
Reversal of loan losses on PCI loans	(22		)	(36		)	(60		)
Allowance for PCI loans, end of period	—			22			58
Allowance for loan losses	$	358,287		$	311,322		$	287,128




($ in thousands)	Year Ended December 31,
($ in thousands)	2019			2018			2017
Allowance for unfunded credit commitments, beginning of period	$	12,566		$	13,318		$	16,121
Reversal of unfunded credit commitments	(1,408		)	(752		)	(2,803		)
Allowance for unfunded credit commitments, end of period	$	11,158		$	12,566		$	13,318

The allowance for unfunded credit commitments is maintained at a level, which management believes to be sufficient to absorb estimated probable losses related to unfunded credit facilities. The allowance for unfunded credit commitments is included in Accrued expenses and other liabilities on the Consolidated Balance Sheet. See Note 15 — Commitments, Contingencies and Related Party Transactions to the Consolidated Financial Statements in this Form 10-K for additional information related to unfunded credit reserves.




($ in thousands)	December 31, 2019
	Commercial								Consumer						Total
			CRE						Residential Mortgage
	C&I		CRE		Multifamily Residential		Construction and Land		Single-Family Residential		HELOCs		Other Consumer
Allowance for loan losses
Individually evaluated for impairment	$	2,881	$	97	$	55	$	—	$	35	$	8	$	2,517	$	5,593
Collectively evaluated for impairment	235,495		40,412		22,771		19,404		28,492		5,257		863		352,694
Acquired with deteriorated credit quality	—		—		—		—		—		—		—		—
Total	$	238,376	$	40,509	$	22,826	$	19,404	$	28,527	$	5,265	$	3,380	$	358,287
Recorded investment in loans
Individually evaluated for impairment	$	114,042	$	21,618	$	4,464	$	19,691	$	22,211	$	13,574	$	2,517	$	198,117
Collectively evaluated for impairment	12,035,079		10,143,629		2,829,748		608,768		7,006,768		1,453,162		280,397		34,357,551
Acquired with deteriorated credit quality ⁽¹⁾	1,810		113,201		22,162		40		79,611		6,047		—		222,871
Total ⁽¹⁾	$	12,150,931	$	10,278,448	$	2,856,374	$	628,499	$	7,108,590	$	1,472,783	$	282,914	$	34,778,539




($ in thousands)	December 31, 2018
	Commercial								Consumer						Total
			CRE						Residential Mortgage
	C&I		CRE		Multifamily Residential		Construction and Land		Single-Family Residential		HELOCs		Other Consumer
Allowance for loan losses
Individually evaluated for impairment	$	1,219	$	208	$	75	$	—	$	34	$	5	$	2,491	$	4,032
Collectively evaluated for impairment	187,898		40,436		19,810		20,290		31,306		5,769		1,759		307,268
Acquired with deteriorated credit quality	—		22		—		—		—		—		—		22
Total	$	189,117	$	40,666	$	19,885	$	20,290	$	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		9,066,813		2,428,364		538,752		5,925,798		1,672,023		328,768		31,958,248
Acquired with deteriorated credit quality ⁽¹⁾	2,152		163,034		36,744		42		97,196		8,855		—		308,023
Total ⁽¹⁾	$	12,056,970	$	9,260,199	$	2,470,668	$	538,794	$	6,036,454	$	1,690,834	$	331,270	$	32,385,189

At the date of acquisition, PCI loans are pooled and accounted for at fair value, which represents the discounted value of the expected cash flows of the loan portfolio. A pool is accounted for as a single asset with a single interest rate, cumulative loss rate and cash flows expectation. The cash flows expected over the life of the pools are estimated by an internal cash flows model that projects cash flows and calculates the carrying values of the pools, book yields, effective interest income and impairment, if any, based on pool level events. Assumptions as to cumulative loss rates, loss curves and prepayment speeds are utilized to calculate the expected cash flows. The amount of expected cash flows over the initial investment in the loan represents the “accretable yield,” which is recognized as interest income on a level yield basis over the life of the loan. Projected loss rates and prepayment speeds affect the estimated life of PCI loans, which may change the amount of interest income, and possibly principal, expected to be collected. The excess of total contractual cash flows over the cash flows expected to be collected at acquisition, considering the impact of prepayments, is referred to as the “nonaccretable difference.”




($ in thousands)	Year Ended December 31,
($ in thousands)	2019			2018			2017
Accretable yield for PCI loans, beginning of period	$	74,870		$	101,977		$	136,247
Accretion	(24,220		)	(34,662		)	(42,487		)
Changes in expected cash flows	(140		)	7,555			8,217
Accretable yield for PCI loans, end of period	$	50,510		$	74,870		$	101,977

At the time of commitment to originate or purchase a loan, the loan is determined to be held-for-investment if it is the Company’s intent to hold the loan to maturity or for the “foreseeable future,” subject to periodic reviews under the Company’s evaluation processes, including asset/liability and credit risk management. When the Company subsequently changes its intent to hold certain loans, the loans are transferred from held-for-investment to held-for-sale at the lower of cost or fair value. As of December 31, 2019 and 2018, loans held-for-sale of $434 thousand and $275 thousand, respectively, consisted of single-family residential loans.

The Company purchases and sells loans in the secondary market in the ordinary course of business. From time to time, purchased loans may be transferred from held-for-investment to held-for-sale, and write-downs to allowance for loan losses are recorded, when appropriate. The following tables provide information about the carrying value of loans purchased for the held-for-investment portfolio, loans sold and loans transferred from held-for-investment to held-for-sale at lower of cost or fair value during the years ended December 31, 2019, 2018 and 2017:




($ in thousands)	Year Ended December 31, 2019
	Commercial								Consumer						Total
			CRE						Residential Mortgage
	C&I		CRE		Multifamily Residential		Construction and Land		Single-Family Residential		HELOCs		Other Consumer
Loans transferred from held-for-investment to held-for-sale ⁽¹⁾	$	245,002	$	39,062	$	—	$	1,573	$	—	$	—	$	—	$	285,637
Sales ^(2)(3)(4)	$	245,791	$	39,062	$	—	$	1,573	$	10,410	$	—	$	—	$	296,836
Purchases ⁽⁵⁾	$	397,615	$	—	$	8,988	$	—	$	117,227	$	—	$	—	$	523,830




($ in thousands)	Year Ended December 31, 2018
	Commercial								Consumer						Total
			CRE						Residential Mortgage
	C&I		CRE		Multifamily Residential		Construction and Land		Single-Family Residential		HELOCs		Other Consumer
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 ⁽⁵⁾	$	525,767	$	—	$	7,389	$	—	$	63,781	$	—	$	—	$	596,937




($ in thousands)	Year Ended December 31, 2017
	Commercial								Consumer						Total
			CRE						Residential mortgage
	C&I		CRE		Multifamily Residential		Construction and Land		Single-Family Residential		HELOCs		Other Consumer
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 ⁽⁵⁾	$	503,359	$	—	$	2,311	$	—	$	29,060	$	—	$	—	$	534,730