XML 50 R31.htm IDEA: XBRL DOCUMENT v3.21.1
Loans Receivable and Allowance for Credit Losses (Tables)
 3 Months Ended
Mar. 31, 2021
Loans and Leases Receivable Disclosure [Abstract]  
Schedule of composition of loans held-for-investment
The following table presents the composition of the Company’s loans held-for-investment as of March 31, 2021 and December 31, 2020:
($ in thousands)March 31, 2021December 31, 2020
Commercial:
C&I (1)
$14,081,110 $13,631,726 
CRE:
CRE11,563,034 11,174,611 
Multifamily residential3,066,515 3,033,998 
Construction and land459,254 599,692 
Total CRE15,088,803 14,808,301 
Total commercial29,169,913 28,440,027 
Consumer:
Residential mortgage:
Single-family residential8,524,287 8,185,953 
HELOCs1,749,172 1,601,716 
Total residential mortgage10,273,459 9,787,669 
Other consumer145,376 163,259 
Total consumer10,418,835 9,950,928 
Total loans held-for-investment (2)
$39,588,748 $38,390,955 
Allowance for loan losses(607,506)(619,983)
Loans held-for-investment, net (2)
$38,981,242 $37,770,972 
(1)Includes Paycheck Protection Program (“PPP”) loans of $2.07 billion and $1.57 billion as of March 31, 2021 and December 31, 2020, respectively.
(2)Includes net deferred loan fees, unearned fees, unamortized premiums and unaccreted discounts of $(76.9) million and $(58.8) million as of March 31, 2021 and December 31, 2020, respectively. Net origination fees related to PPP loans were $(34.3) million and $(12.7) million as of March 31, 2021 and December 31, 2020, respectively.
Schedule of loans held-for-investment by loan portfolio segments, internal risk ratings and vintage year
The following tables summarize the Company’s loans held-for-investment as of March 31, 2021 and December 31, 2020, presented by loan portfolio segments, internal risk ratings and vintage year. The vintage year is the year of origination, renewal or major modification.
($ in thousands)March 31, 2021
Term LoansRevolving Loans
Amortized Cost Basis		Revolving Loans Converted to Term Loans Amortized Cost BasisTotal
Amortized Cost Basis by Origination Year
20212020201920182017Prior
Commercial:
C&I:
Pass$1,661,034 $3,043,315 $1,220,618 $385,813 $228,364 $280,748 $6,492,230 $29,327 $13,341,449 
Criticized (accrual)55,239 145,506 83,989 29,315 18,541 6,809 274,726 — 614,125 
Criticized (nonaccrual)288 1,540 17,422 21,368 14,858 2,797 67,263 — 125,536 
Total C&I1,716,561 3,190,361 1,322,029 436,496 261,763 290,354 6,834,219 29,327 14,081,110 
CRE:
CRE:
Pass664,626 2,303,031 2,354,998 2,253,230 1,284,384 2,128,975 193,541 24,104 11,206,889 
Criticized (accrual)28,915 34,902 63,620 25,343 61,238 91,993 — — 306,011 
Criticized (nonaccrual)— — — 42,067 5,868 2,199 — — 50,134 
Total CRE693,541 2,337,933 2,418,618 2,320,640 1,351,490 2,223,167 193,541 24,104 11,563,034 
Multifamily residential:
Pass160,470 764,482 762,001 470,223 352,094 488,260 5,889 — 3,003,419 
Criticized (accrual)— — 731 22,309 6,067 29,296 — — 58,403 
Criticized (nonaccrual)— — — 1,447 1,125 2,121 — — 4,693 
Total multifamily residential
160,470 764,482 762,732 493,979 359,286 519,677 5,889 — 3,066,515 
Construction and land:
Pass5,642 141,475 146,701 121,364 — 20,691 — — 435,873 
Criticized (accrual)3,481 — — — — — — — 3,481 
Criticized (nonaccrual)— — — — — 19,900 — — 19,900 
Total construction and land
9,123 141,475 146,701 121,364 — 40,591 — — 459,254 
Total CRE863,134 3,243,890 3,328,051 2,935,983 1,710,776 2,783,435 199,430 24,104 15,088,803 
Total commercial
2,579,695 6,434,251 4,650,080 3,372,479 1,972,539 3,073,789 7,033,649 53,431 29,169,913 
Consumer:
Residential mortgage:
Single-family residential:
Pass (1)
669,660 2,427,430 1,704,855 1,385,623 956,307 1,360,015 — — 8,503,890 
Criticized (accrual)— — — 194 347 2,207 — — 2,748 
Criticized (nonaccrual) (1)
— — 1,205 1,038 2,246 13,160 — — 17,649 
Total single-family residential mortgage
669,660 2,427,430 1,706,060 1,386,855 958,900 1,375,382 — — 8,524,287 
HELOCs:
Pass— 690 548 3,235 4,319 14,931 1,458,199 255,538 1,737,460 
Criticized (accrual)— — — — — 1 287 547 835 
Criticized (nonaccrual)— — 151 188 4,019 1,838 449 4,232 10,877 
Total HELOCs— 690 699 3,423 8,338 16,770 1,458,935 260,317 1,749,172 
Total residential mortgage
669,660 2,428,120 1,706,759 1,390,278 967,238 1,392,152 1,458,935 260,317 10,273,459 
Other consumer:
Pass849 8,168 — — 1,830 83,547 48,455 — 142,849 
Criticized (nonaccrual)— — — — 2,492 — 35 — 2,527 
Total other consumer
849 8,168 — — 4,322 83,547 48,490 — 145,376 
Total consumer670,509 2,436,288 1,706,759 1,390,278 971,560 1,475,699 1,507,425 260,317 10,418,835 
Total
$3,250,204 $8,870,539 $6,356,839 $4,762,757 $2,944,099 $4,549,488 $8,541,074 $313,748 $39,588,748 
($ in thousands)December 31, 2020
Term LoansRevolving Loans
Amortized Cost Basis		Revolving Loans Converted to Term Loans Amortized Cost BasisTotal
Amortized Cost Basis by Origination Year
20202019201820172016Prior
Commercial:
C&I:
Pass$3,912,147 $1,477,740 $483,725 $245,594 $69,482 $245,615 $6,431,003 $29,487 $12,894,793 
Criticized (accrual)120,183 74,601 56,785 19,426 1,487 5,872 324,640 — 602,994 
Criticized (nonaccrual)2,125 25,267 22,240 18,787 4,964 1,592 58,964 — 133,939 
Total C&I4,034,455 1,577,608 562,750 283,807 75,933 253,079 6,814,607 29,487 13,631,726 
CRE:
CRE:
Pass2,296,649 2,402,136 2,310,748 1,328,251 732,694 1,529,681 173,267 19,064 10,792,490 
Criticized (accrual)47,459 63,654 43,447 98,259 2,094 80,662 — — 335,575 
Criticized (nonaccrual)— — 42,067 1,115 — 3,364 — — 46,546 
Total CRE2,344,108 2,465,790 2,396,262 1,427,625 734,788 1,613,707 173,267 19,064 11,174,611 
Multifamily residential:
Pass783,671 783,589 479,959 411,945 181,213 348,751 5,895 — 2,995,023 
Criticized (accrual)— 735 22,330 6,101 264 5,877 — — 35,307 
Criticized (nonaccrual)— — 1,475 — — 2,193 — — 3,668 
Total multifamily residential
783,671 784,324 503,764 418,046 181,477 356,821 5,895 — 3,033,998 
Construction and land:
Pass224,924 172,707 156,712 — 20,897 1,028 — — 576,268 
Criticized (accrual)3,524 — — — — 19,900 — — 23,424 
Criticized (nonaccrual)— — — — — — — — — 
Total construction and land
228,448 172,707 156,712 — 20,897 20,928 — — 599,692 
Total CRE3,356,227 3,422,821 3,056,738 1,845,671 937,162 1,991,456 179,162 19,064 14,808,301 
Total commercial
7,390,682 5,000,429 3,619,488 2,129,478 1,013,095 2,244,535 6,993,769 48,551 28,440,027 
Consumer:
Residential mortgage:
Single-family residential:
Pass (1)
2,385,853 1,813,200 1,501,660 1,021,707 523,170 921,714 — — 8,167,304 
Criticized (accrual)— 1,429 — — 119 1,034 — — 2,582 
Criticized (nonaccrual) (1)
— 226 812 1,789 1,994 11,246 — — 16,067 
Total single-family residential mortgage
2,385,853 1,814,855 1,502,472 1,023,496 525,283 933,994 — — 8,185,953 
HELOCs:
Pass1,131 880 2,879 5,363 8,433 13,475 1,328,919 225,810 1,586,890 
Criticized (accrual)— — 200 — 996 — 1,328 606 3,130 
Criticized (nonaccrual)— 151 285 4,617 164 1,962 — 4,517 11,696 
Total HELOCs1,131 1,031 3,364 9,980 9,593 15,437 1,330,247 230,933 1,601,716 
Total residential mortgage
2,386,984 1,815,886 1,505,836 1,033,476 534,876 949,431 1,330,247 230,933 9,787,669 
Other consumer:
Pass9,531 — — 1,830 — 83,255 66,136 — 160,752 
Criticized (accrual)16 — — — — — — — 16 
Criticized (nonaccrual)— — — 2,491 — — — — 2,491 
Total other consumer
9,547 — — 4,321 — 83,255 66,136 — 163,259 
Total consumer2,396,531 1,815,886 1,505,836 1,037,797 534,876 1,032,686 1,396,383 230,933 9,950,928 
Total
$9,787,213 $6,816,315 $5,125,324 $3,167,275 $1,547,971 $3,277,221 $8,390,152 $279,484 $38,390,955 
(1)As of March 31, 2021 and December 31, 2020, $647 thousand and $747 thousand of nonaccrual loans whose payments are guaranteed by the Federal Housing Administration were classified with a pass rating.
Schedule of aging analysis of loans The following table presents the aging analysis of total loans held-for-investment as of March 31, 2021 and December 31, 2020:
($ in thousands)March 31, 2021
Current
Accruing
Loans (1)
Accruing
Loans
30-59  Days
Past Due		Accruing
Loans
60-89  Days
Past Due		Total
Accruing
Past Due
Loans		Total
Nonaccrual
Loans		Total
Loans
Commercial:
C&I$13,923,524 $26,417 $5,633 $32,050 $125,536 $14,081,110 
CRE:
CRE11,473,405 5,688 33,807 39,495 50,134 11,563,034 
Multifamily residential3,061,822 — — — 4,693 3,066,515 
Construction and land439,354 — — — 19,900 459,254 
Total CRE14,974,581 5,688 33,807 39,495 74,727 15,088,803 
Total commercial28,898,105 32,105 39,440 71,545 200,263 29,169,913 
Consumer:
Residential mortgage:
Single-family residential8,493,416 9,827 2,748 12,575 18,296 8,524,287 
HELOCs1,735,692 1,769 834 2,603 10,877 1,749,172 
Total residential mortgage10,229,108 11,596 3,582 15,178 29,173 10,273,459 
Other consumer142,604 242 4 246 2,526 145,376 
Total consumer10,371,712 11,838 3,586 15,424 31,699 10,418,835 
Total$39,269,817 $43,943 $43,026 $86,969 $231,962 $39,588,748 
($ in thousands)December 31, 2020
Current
Accruing
Loans (1)
Accruing
Loans
30-59 Days
Past Due		Accruing
Loans
60-89 Days
Past Due		Total
Accruing
Past Due
Loans		Total
Nonaccrual
Loans		Total
Loans
Commercial:
C&I$13,488,070 $8,993 $724 $9,717 $133,939 $13,631,726 
CRE:
CRE11,127,690 375 — 375 46,546 11,174,611 
Multifamily residential3,028,512 1,818 — 1,818 3,668 3,033,998 
Construction and land579,792 19,900 — 19,900 — 599,692 
Total CRE14,735,994 22,093 — 22,093 50,214 14,808,301 
Total commercial28,224,064 31,086 724 31,810 184,153 28,440,027 
Consumer:
Residential mortgage:
Single-family residential8,156,645 9,911 2,583 12,494 16,814 8,185,953 
HELOCs1,583,968 2,922 3,130 6,052 11,696 1,601,716 
Total residential mortgage
9,740,613 12,833 5,713 18,546 28,510 9,787,669 
Other consumer160,534 217 17 234 2,491 163,259 
Total consumer9,901,147 13,050 5,730 18,780 31,001 9,950,928 
Total$38,125,211 $44,136 $6,454 $50,590 $215,154 $38,390,955 
(1)As of March 31, 2021 and December 31, 2020, the “Current Accruing Loans” balance of loans in payment deferral programs offered in response to the COVID-19 pandemic which are performing according to their modified terms are generally not considered delinquent.
Schedule of amortized cost of loans on nonaccrual status with no related allowance for loan losses
The following table presents the amortized cost of loans on nonaccrual status for which there was no related allowance for loan losses as of March 31, 2021 and December 31, 2020. Nonaccrual loans may not have an allowance for credit losses if the loss expectation is zero as the loan balances are supported by the collateral value.
($ in thousands)March 31, 2021December 31, 2020
Commercial:
C&I$63,312 $62,040 
CRE:
CRE49,137 45,537 
Multifamily residential3,578 2,519 
Construction and land19,900 — 
Total CRE72,615 48,056 
Total commercial135,927 110,096 
Consumer:
Residential mortgage:
Single-family residential6,014 6,013 
HELOCs7,353 8,076 
Total residential mortgage13,367 14,089 
Other consumer2,491 2,491 
Total consumer15,858 16,580 
Total nonaccrual loans with no related allowance for loan losses$151,785 $126,676 
Summary of additions and post-modification to troubled debt restructurings
The following table presents the additions to TDRs for the three months ended March 31, 2021 and 2020:
($ in thousands)Loans Modified as TDRs During the Three Months Ended March 31,
20212020
Number
of
Loans		Pre-
Modification
Outstanding
Recorded
Investment
Post-
Modification
Outstanding
Recorded
   Investment (1)
Financial
   Impact (2)
Number
of
Loans		Pre-
Modification
Outstanding
Recorded
Investment
Post-
Modification
Outstanding
Recorded
   Investment (1)
Financial
   Impact (2)
Commercial:
C&I1$443 $433 $203 3$16,604 $15,735 $98 
Total1$443 $433 $203 3$16,604 $15,735 $98 
(1)Includes subsequent payments after modification and reflects the balance as of March 31, 2021 and 2020.
(2)Includes charge-offs and specific reserves recorded since the modification date.

The following table presents the TDR post-modification outstanding balances for the three months ended March 31, 2021 and 2020 by modification type:
($ in thousands)Modification Type During the Three Months Ended March 31,
20212020
Principal (1)
Principal
  and Interest (2)
Total
Principal (1)
Principal
  and Interest (2)
Total
Commercial:
C&I$433 $— $433 $4,564 $11,171 $15,735 
Total$433 $— $433 $4,564 $11,171 $15,735 
(1)Includes forbearance payments, term extensions and principal deferments that modify the terms of the loan from principal and interest payments to interest payments only.
(2)Includes principal and interest deferments or reductions.
Summary of TDR loans subsequently defaulted The following table presents information on loans for which a subsequent payment default occurred during the three months ended March 31, 2021, which had been modified as TDR within the previous 12 months of its default, and were still in default as of March 31, 2021. In comparison, there were no TDRs that experienced payment default after modifications within the previous 12 months during the three months ended March 31, 2020.
($ in thousands)Loans Modified as TDRs that Subsequently Defaulted
During the Three Months Ended March 31,
2021
Number of
Loans		Recorded
Investment
Commercial:
C&I1 $11,538 
Total1 $11,538 
Summary of activity in the allowance for credit losses
The following tables summarize the activity in the allowance for loan losses by portfolio segments for the three months ended March 31, 2021 and 2020:
($ in thousands)Three Months Ended March 31, 2021
CommercialConsumerTotal
C&ICREResidential MortgageOther
Consumer
CREMultifamily
Residential		Construction
and Land		Single-
Family
Residential		HELOCs
Allowance for loan losses, beginning of period
$398,040 $163,791 $27,573 $10,239 $15,520 $2,690 $2,130 $619,983 
Provision for (reversal of) credit losses on loans
(a)3,839 (10,277)(1,391)8,592 376 22 (113)1,048 
Gross charge-offs(8,436)(7,195)(17)(71)(134)(45)(1)(15,899)
Gross recoveries760 80 1,242 329 77 3 2 2,493 
Total net (charge-offs) recoveries
(7,676)(7,115)1,225 258 (57)(42)1 (13,406)
Foreign currency translation adjustment(119)— — — — — — (119)
Allowance for loan losses, end of period
$394,084 $146,399 $27,407 $19,089 $15,839 $2,670 $2,018 $607,506 
($ in thousands)Three Months Ended March 31, 2020
CommercialConsumerTotal
C&ICREResidential MortgageOther
Consumer
CREMultifamily
Residential		Construction
and Land		Single-
Family
Residential		HELOCs
Allowance for loan losses, beginning of period
$238,376 $40,509 $22,826 $19,404 $28,527 $5,265 $3,380 $358,287 
Impact of ASU 2016-13 adoption
74,237 72,169 (8,112)(9,889)(3,670)(1,798)2,221 125,158 
Provision for (reversal of) credit losses on loans
(a)60,618 11,435 1,281 1,482 1,700 412 (2,272)74,656 
Gross charge-offs(11,977)(954)— — — — (26)(12,957)
Gross recoveries1,575 9,660 535 21 265 2 1 12,059 
Total net (charge-offs) recoveries
(10,402)8,706 535 21 265 2 (25)(898)
Foreign currency translation adjustment(200)— — — — — — (200)
Allowance for loan losses, end of period
$362,629 $132,819 $16,530 $11,018 $26,822 $3,881 $3,304 $557,003 

The following table summarizes the activities in the allowance for unfunded credit commitments for the three months ended March 31, 2021 and 2020:
($ in thousands)Three Months Ended March 31,
20212020
Unfunded credit facilities
Allowance for unfunded credit commitments, beginning of period$33,577 $11,158 
Impact of ASU 2016-13 adoption— 10,457 
Reversal of credit losses on unfunded credit commitments(b)(1,048)(786)
Allowance for unfunded credit commitments, end of period32,529 20,829 
Provision for credit losses(a) + (b)$— $73,870 
Schedule of carrying value of loans purchased for the held-for-investment portfolio, loans sold and loans transferred from held-for-investment to held-for-sale at lower of cost or fair value The following tables provide information about the carrying value of loans purchased for the held-for-investment portfolio, loans sold and loans transferred during the three months ended March 31, 2021 and 2020:
($ in thousands)Three Months Ended March 31, 2021
CommercialConsumerTotal
C&ICREResidential Mortgage
CREMultifamily
Residential		Single-Family
Residential
Loans transferred from held-for-investment to held-for-sale (1)
$125,840 $20,032 $— $— $145,872 
Sales (2)(3)(4)
$125,879 $20,032 $— $7,506 $153,417 
Purchases (5)
$178,678 $— $370 $131,800 $310,848 
($ in thousands)Three Months Ended March 31, 2020
CommercialConsumerTotal
C&ICREResidential Mortgage
CREMultifamily
Residential		Single-Family
Residential
Loans transferred from held-for-investment to held-for-sale (1)
$102,973 $7,250 $— $— $110,223 
Sales (2)(3)(4)
$102,973 $7,250 $— $4,642 $114,865 
Purchases (5)
$130,583 $— $1,513 $1,084 $133,180 
(1)Includes write-downs of $39 thousand to the allowance for loan losses related to loans transferred from held-for-investment to held-for-sale for the three months ended March 31, 2021. There were no write-downs for the three months ended March 31, 2020.
(2)Includes originated loans sold of $131.0 million and $114.9 million for the three months ended March 31, 2021 and 2020, respectively. Originated loans sold consisted primarily of C&I loans for both periods.
(3)Includes $22.4 million of purchased loans sold in the secondary market for the three months ended March 31, 2021. There were no purchased loans sold in the secondary market for the three months ended March 31, 2020.
(4)Net gains on sales of loans were $1.8 million and $950 thousand for the three months ended March 31, 2021 and 2020, respectively.
(5)C&I loan purchases were comprised primarily of syndicated C&I term loans.