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Loans Receivable and Allowance for Credit Losses
 3 Months Ended
Mar. 31, 2025
Loans and Leases Receivable Disclosure [Abstract]  
Loans Receivable and Allowance for Credit Losses Loans Receivable and Allowance for Credit Losses
The following table presents the composition of the Company’s loans held-for-investment outstanding as of March 31, 2025 and December 31, 2024:
($ in thousands)March 31, 2025December 31, 2024
Commercial:
C&I$17,460,744 $17,397,158 
CRE:
CRE14,868,361 14,655,340 
Multifamily residential5,007,969 4,953,442 
Construction and land653,630 666,162 
Total CRE20,529,960 20,274,944 
Total commercial37,990,704 37,672,102 
Consumer:
Residential mortgage:
Single-family residential14,383,562 14,175,446 
Home equity lines of credit (“HELOCs”)
1,827,837 1,811,628 
Total residential mortgage16,211,399 15,987,074 
Other consumer50,631 67,461 
Total consumer16,262,030 16,054,535 
Total loans held-for-investment (1)
$54,252,734 $53,726,637 
Allowance for loan losses(734,856)(702,052)
Loans held-for-investment, net (1)
$53,517,878 $53,024,585 
(1)Includes $36 million and $46 million of net deferred loan fees and net unamortized premiums as of March 31, 2025 and December 31, 2024, respectively.

Accrued interest receivable on loans held-for-investment was $248 million and $255 million as of March 31, 2025 and December 31, 2024, respectively, and was included in Other assets on the Consolidated Balance Sheet. The interest income reversed was insignificant for both the three months ended March 31, 2025 and 2024. For the Company’s accounting policy on accrued interest receivable related to loans held-for-investment, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Loans Held-for-Investment to the Consolidated Financial Statements of the Company’s 2024 Form 10-K. The Company may occasionally have loans held-for-sale. For the Company’s accounting policy on loans held-for-sale, refer to Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Loans Held-for-Sale to the Consolidated Financial Statements in the Company’s 2024 Form 10-K.

The Company’s FRB and FHLB borrowings are primarily secured by loans held-for-investment. Loans held-for-investment totaling $40.0 billion and $38.2 billion, respectively, were pledged to secure borrowings and provide additional borrowing capacity as of March 31, 2025 and December 31, 2024.

Credit Quality Indicators

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

The Company utilizes internal credit risk ratings to assign each individual loan a risk rating of 1 through 10:
•Pass — loans risk rated 1 through 5 are assigned an internal risk rating category of “Pass.” Loans risk rated 1 are typically loans fully secured by cash. Pass loans have sufficient sources of repayment to repay the loan in full, in accordance with all terms and conditions.
•Special mention — loans assigned a risk rating of 6 have potential weaknesses that warrant closer attention by management; these are assigned an internal risk rating category of “Special Mention.”
•Substandard — loans assigned a risk rating of 7 or 8 have well-defined weaknesses that may jeopardize the full and timely repayment of the loan; these are assigned an internal risk rating category of “Substandard.”
•Doubtful — loans assigned a risk rating of 9 have insufficient sources of repayment and a high probability of loss; these are assigned an internal risk rating category of “Doubtful.”
•Loss — loans assigned a risk rating of 10 are uncollectible and of such little value that they are no longer considered bankable assets; these are assigned an internal risk rating category of “Loss.”

Loan exposures categorized as criticized consist of special mention, substandard, doubtful and loss categories. The Company reviews the internal risk ratings of its loan portfolio on a regular basis, and adjusts the ratings based on changes in the borrowers’ financial status and the collectability of the loans.
The following tables summarize the Company’s loans held-for-investment and year-to-date gross write-offs by loan portfolio segments, internal risk ratings and vintage year as of the periods presented. The vintage year is the year of loan origination, renewal or major modification. Gross write-offs in the following tables are for the three months ended March 31, 2025, and year ended December 31, 2024. Revolving loans that are converted to term loans presented in the tables below are excluded from the term loans by vintage year columns.
March 31, 2025
Term Loans by Origination Year
($ in thousands)20252024202320222021PriorRevolving Loans
Revolving Loans Converted to Term Loans (1)
Total
Commercial:
C&I:
Pass$536,257 $2,495,604 $1,284,574 $924,021 $599,028 $478,909 $10,637,412 $39,025 $16,994,830 
Criticized (accrual)653 43,822 31,427 50,138 72,115 36,503 155,677 — 390,335 
Criticized (nonaccrual)
284 4,461 27,004 21,986 10,266 11,511 67 — 75,579 
Total C&I537,194 2,543,887 1,343,005 996,145 681,409 526,923 10,793,156 39,025 17,460,744 
Gross write-offs (2)
— — — 46 418 253 — — 717 
CRE:
Pass626,306 1,612,384 2,209,065 3,559,562 1,876,657 4,241,478 110,625 49,000 14,285,077 
Criticized (accrual)— 34,384 100,717 113,114 55,208 259,557 — 14,751 577,731 
Criticized (nonaccrual)
— — — 465 836 4,252 — — 5,553 
Subtotal CRE626,306 1,646,768 2,309,782 3,673,141 1,932,701 4,505,287 110,625 63,751 14,868,361 
Gross write-offs
— — — — 19 13,918 — — 13,937 
Multifamily residential:
Pass226,636 390,608 504,267 1,269,597 704,413 1,803,284 17,332 1,246 4,917,383 
Criticized (accrual)— — — 48,930 34,194 2,907 — — 86,031 
Criticized (nonaccrual)
— — — — — 4,555 — — 4,555 
Subtotal multifamily residential226,636 390,608 504,267 1,318,527 738,607 1,810,746 17,332 1,246 5,007,969 
Gross write-offs
— — — — — 4 — — 4 
Construction and land:
Pass19,285 100,946 329,974 178,589 21,126 3,710 — — 653,630 
Subtotal construction and land19,285 100,946 329,974 178,589 21,126 3,710 — — 653,630 
Total CRE872,227 2,138,322 3,144,023 5,170,257 2,692,434 6,319,743 127,957 64,997 20,529,960 
Total CRE gross write-offs (2)
— — — — 19 13,922 — — 13,941 
Total commercial$1,409,421 $4,682,209 $4,487,028 $6,166,402 $3,373,843 $6,846,666 $10,921,113 $104,022 $37,990,704 
Total commercial gross write-offs (2)
$— $— $— $46 $437 $14,175 $— $— $14,658 
March 31, 2025
Term Loans by Origination Year
($ in thousands)20252024202320222021PriorRevolving Loans
Revolving Loans Converted to Term Loans (1)
Total
Consumer:
Residential mortgage:
Single-family residential:
Pass (3)
$704,247 $2,230,645 $2,665,707 $3,007,253 $2,030,062 $3,687,561 $— $— $14,325,475 
Criticized (accrual)— 2,222 2,622 3,478 1,786 6,631 — — 16,739 
Criticized (nonaccrual) (3)
— 6,616 11,705 3,308 7,457 12,262 — — 41,348 
Subtotal single-family residential mortgage704,247 2,239,483 2,680,034 3,014,039 2,039,305 3,706,454 — — 14,383,562 
Gross write-offs
— 9 — — — — — — 9 
HELOCs:
Pass517 6,812 3,443 3,388 2,472 11,011 1,660,563 92,591 1,780,797 
Criticized (accrual)— 742 183 1,002 1,658 11,015 6,037 1,153 21,790 
Criticized (nonaccrual)
— 4,977 1,152 3,189 52 10,883 — 4,997 25,250 
Subtotal HELOCs517 12,531 4,778 7,579 4,182 32,909 1,666,600 98,741 1,827,837 
Total residential mortgage704,764 2,252,014 2,684,812 3,021,618 2,043,487 3,739,363 1,666,600 98,741 16,211,399 
Total residential mortgage gross write-offs
— 9 — — — — — — 9 
Other consumer:
Pass4,257 679 — 23,004 131 6,797 15,660 — 50,528 
Criticized (accrual)6 — — — — — — — 6 
Criticized (nonaccrual)
— — — — — — 97 — 97 
Total other consumer4,263 679 — 23,004 131 6,797 15,757 — 50,631 
Total consumer$709,027 $2,252,693 $2,684,812 $3,044,622 $2,043,618 $3,746,160 $1,682,357 $98,741 $16,262,030 
Total consumer gross write-offs (2)
$—$9$—$—$—$—$—$—$9
Total loans held-for-investment:
Pass$2,117,505 $6,837,678 $6,997,030 $8,965,414 $5,233,889 $10,232,750 $12,441,592 $181,862 $53,007,720 
Criticized (accrual)659 81,170 134,949 216,662 164,961 316,613 161,714 15,904 1,092,632 
Criticized (nonaccrual)
284 16,054 39,861 28,948 18,611 43,463 164 4,997 152,382 
Total$2,118,448 $6,934,902 $7,171,840 $9,211,024 $5,417,461 $10,592,826 $12,603,470 $202,763 $54,252,734 
Total loans held-for-investment gross write-offs (2)
$— $9 $— $46 $437 $14,175 $— $— $14,667 
December 31, 2024
Term Loans by Origination Year
($ in thousands)20242023202220212020PriorRevolving Loans
Revolving Loans Converted to Term Loans (1)
Total
Commercial:
C&I:
Pass$2,605,928 $1,508,948 $999,586 $612,015 $243,528 $295,884 $10,574,404 $23,032 $16,863,325 
Criticized (accrual)34,412 51,415 61,041 107,355 10,538 31,160 151,747 — 447,668 
Criticized (nonaccrual)
3,822 29,181 20,273 10,666 3,225 9,135 9,863 — 86,165 
Total C&I2,644,162 1,589,544 1,080,900 730,036 257,291 336,179 10,736,014 23,032 17,397,158 
Gross write-offs (2)
20 47,963 14,848 11,119 1,568 3,012 27,099 — 105,629 
CRE:
Pass1,660,877 2,296,763 3,692,498 1,925,220 1,296,439 3,176,450 96,791 49,302 14,194,340 
Criticized (accrual)34,543 44,557 90,105 31,615 75,578 167,401 — 14,771 458,570 
Criticized (nonaccrual)— — — — 1,756 674 — — 2,430 
Subtotal CRE1,695,420 2,341,320 3,782,603 1,956,835 1,373,773 3,344,525 96,791 64,073 14,655,340 
Gross write-offs (2)
— — — — — 3 — — 3 
Multifamily residential:
Pass386,743 521,754 1,337,599 752,230 613,115 1,242,586 14,640 1,253 4,869,920 
Criticized (accrual)— — 43,997 32,042 — 2,911 — — 78,950 
Criticized (nonaccrual)— — — — — 4,572 — — 4,572 
Subtotal multifamily residential386,743 521,754 1,381,596 784,272 613,115 1,250,069 14,640 1,253 4,953,442 
Gross write-offs
— — — — — 10 — — 10 
Construction and land:
Pass90,926 328,803 184,792 41,932 — 8,393 — — 654,846 
Criticized (nonaccrual)— — 11,316 — — — — — 11,316 
Subtotal construction and land
90,926 328,803 196,108 41,932 — 8,393 — — 666,162 
Gross write-offs
— — 2,289 — — — — — 2,289 
Total CRE2,173,089 3,191,877 5,360,307 2,783,039 1,986,888 4,602,987 111,431 65,326 20,274,944 
Total CRE gross write-offs (2)
— — 2,289 — — 13 — — 2,302 
Total commercial$4,817,251 $4,781,421 $6,441,207 $3,513,075 $2,244,179 $4,939,166 $10,847,445 $88,358 $37,672,102 
Total commercial gross write-offs (2)
$20 $47,963 $17,137 $11,119 $1,568 $3,025 $27,099 $— $107,931 
December 31, 2024
Term Loans by Origination Year
($ in thousands)20242023202220212020PriorRevolving Loans
Revolving Loans Converted to Term Loans (1)
Total
Consumer:
Residential mortgage:
Single-family residential:
Pass (3)
$2,360,674 $2,762,921 $3,074,668 $2,079,323 $1,407,031 $2,437,446 $— $— $14,122,063 
Criticized (accrual)4,175 3,409 750 5,810 1,548 6,069 — — 21,761 
Criticized (nonaccrual) (3)
2,716 9,673 1,929 2,035 2,404 12,865 — — 31,622 
Subtotal single-family residential mortgage2,367,565 2,776,003 3,077,347 2,087,168 1,410,983 2,456,380 — — 14,175,446 
Gross write-offs (2)
9 — — — — — — — 9 
HELOCs:
Pass7,453 3,288 4,071 3,236 7,570 8,152 1,648,337 99,488 1,781,595 
Criticized (accrual)1,436 — 1,420 — 135 2,064 2,338 594 7,987 
Criticized (nonaccrual)3,161 3,095 2,520 39 418 7,301 — 5,512 22,046 
Subtotal HELOCs12,050 6,383 8,011 3,275 8,123 17,517 1,650,675 105,594 1,811,628 
Gross write-offs
— 10 — — — — — 5 15 
Total residential mortgage2,379,615 2,782,386 3,085,358 2,090,443 1,419,106 2,473,897 1,650,675 105,594 15,987,074 
Total residential mortgage gross write-offs (2)
9 10 — — — — — 5 24 
Other consumer:
Pass14,916 — 22,992 132 — 6,800 22,555 — 67,395 
Criticized (nonaccrual)— — — — — — 66 — 66 
Total other consumer14,916 — 22,992 132 — 6,800 22,621 — 67,461 
Gross write-offs (2)
— 3,000 — — — — 890 — 3,890 
Total consumer$2,394,531 $2,782,386 $3,108,350 $2,090,575 $1,419,106 $2,480,697 $1,673,296 $105,594 $16,054,535 
Total consumer gross write-offs (2)
$9 $3,010 $— $— $— $— $890 $5 $3,914 
Total loans held-for-investment:
Pass$7,127,517 $7,422,477 $9,316,206 $5,414,088 $3,567,683 $7,175,711 $12,356,727 $173,075 $52,553,484 
Criticized (accrual)74,566 99,381 197,313 176,822 87,799 209,605 154,085 15,365 1,014,936 
Criticized (nonaccrual)
9,699 41,949 36,038 12,740 7,803 34,547 9,929 5,512 158,217 
Total$7,211,782 $7,563,807 $9,549,557 $5,603,650 $3,663,285 $7,419,863 $12,520,741 $193,952 $53,726,637 
Total loans held-for-investment gross write-offs (2)
$29 $50,973 $17,137 $11,119 $1,568 $3,025 $27,989 $5 $111,845 
(1)$16 million of total commercial loans, comprised of C&I revolving loans, were converted to term loans during the three months ended March 31, 2025. In comparison, $7 million of total commercial loans, comprised of C&I and CRE revolving loans and $15 million of total consumer loans, comprised of HELOCs, converted to term loans during the three months ended March 31, 2024.
(2)Excludes gross write-offs associated with loans the Company sold or settled.
(3)$1 million of nonaccrual loans whose payments were guaranteed by the Federal Housing Administration were classified with a “Pass” rating as of both March 31, 2025 and December 31, 2024.
Nonaccrual and Past Due Loans

Loans that are 90 or more days past due are generally placed on nonaccrual status unless the loan is well-collateralized and in the process of collection. 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 of loans held-for-investment as of March 31, 2025 and December 31, 2024:
March 31, 2025
($ in thousands)Current Accruing LoansAccruing Loans 30-59 Days Past DueAccruing Loans 60-89 Days Past DueTotal Accruing Past Due LoansTotal Nonaccrual LoansTotal Loans
Commercial:
C&I$17,359,512 $25,254 $399 $25,653 $75,579 $17,460,744 
CRE:
CRE14,862,806 — 1 1 5,554 14,868,361 
Multifamily residential5,002,008 1,407 — 1,407 4,554 5,007,969 
Construction and land653,630 — — — — 653,630 
Total CRE20,518,444 1,407 1 1,408 10,108 20,529,960 
Total commercial37,877,956 26,661 400 27,061 85,687 37,990,704 
Consumer:
Residential mortgage:
Single-family residential14,276,842 47,184 17,370 64,554 42,166 14,383,562 
HELOCs1,772,312 8,500 21,775 30,275 25,250 1,827,837 
Total residential mortgage16,049,154 55,684 39,145 94,829 67,416 16,211,399 
Other consumer48,573 1,883 78 1,961 97 50,631 
Total consumer16,097,727 57,567 39,223 96,790 67,513 16,262,030 
Total$53,975,683 $84,228 $39,623 $123,851 $153,200 $54,252,734 
December 31, 2024
($ in thousands)Current Accruing LoansAccruing Loans 30-59 Days Past DueAccruing Loans 60-89 Days Past DueTotal Accruing Past Due LoansTotal Nonaccrual LoansTotal Loans
Commercial:
C&I$17,288,138 $5,690 $17,165 $22,855 $86,165 $17,397,158 
CRE:
CRE14,647,270 3,755 1,885 5,640 2,430 14,655,340 
Multifamily residential4,947,939 653 278 931 4,572 4,953,442 
Construction and land653,919 927 — 927 11,316 666,162 
Total CRE20,249,128 5,335 2,163 7,498 18,318 20,274,944 
Total commercial37,537,266 11,025 19,328 30,353 104,483 37,672,102 
Consumer:
Residential mortgage:
Single-family residential14,088,086 32,841 22,096 54,937 32,423 14,175,446 
HELOCs1,770,218 11,396 7,968 19,364 22,046 1,811,628 
Total residential mortgage
15,858,304 44,237 30,064 74,301 54,469 15,987,074 
Other consumer67,288 92 15 107 66 67,461 
Total consumer15,925,592 44,329 30,079 74,408 54,535 16,054,535 
Total$53,462,858 $55,354 $49,407 $104,761 $159,018 $53,726,637 
The following table presents the amortized cost of loans on nonaccrual status for which there was no related allowance for loan losses as of both March 31, 2025 and December 31, 2024. Nonaccrual loans may not have an allowance for credit losses if the loan balances are well secured by collateral values and there is no loss expectation.
($ in thousands)March 31, 2025December 31, 2024
Commercial:
C&I$56,115 $79,591 
CRE3,848 — 
Multifamily residential— 4,210 
Construction and land— 11,316 
Total commercial59,963 95,117 
Consumer:
Single-family residential10,879 6,279 
HELOCs8,204 15,380 
Total consumer19,083 21,659 
Total nonaccrual loans with no related allowance for loan losses$79,046 $116,776 

Foreclosed Assets

The Company acquires assets from borrowers through loan restructurings, workouts, or foreclosures. Assets acquired may include real properties (e.g., real estate, land, and buildings) and commercial and personal properties. The Company recognizes foreclosed assets upon receiving assets in satisfaction of a loan (e.g., taking legal title or physical possession).

Foreclosed assets, consisting of OREO and other nonperforming assets, are included in Other assets on the Consolidated Balance Sheet. The Company had $29 million of foreclosed assets as of March 31, 2025, compared with $35 million as of December 31, 2024. The Company commences the foreclosure process on consumer mortgage loans after a borrower becomes more than 120 days delinquent in accordance with the Consumer Financial Protection Bureau guidelines. The carrying value of the consumer real estate loans that were in an active or suspended foreclosure process was $23 million and $16 million as of March 31, 2025 and December 31, 2024, respectively.
Loan Modifications to Borrowers Experiencing Financial Difficulty

As part of the Company’s loss mitigation efforts, the Company may agree to modify the contractual terms of a loan to assist borrowers experiencing financial difficulty. The Company negotiates loan modifications on a case-by-case basis to achieve mutually agreeable terms that maximize loan collectability and meet the borrower’s financial needs. The Company considers various factors to identify borrowers experiencing financial difficulty. The primary factor for consumer borrowers is delinquency status. For commercial loan borrowers, these factors include credit risk ratings, the probability of loan risk rating downgrades, and overall risk profile changes. The modification may include, but is not limited to, payment delays, interest rate reductions, term extensions, principal forgiveness, or a combination of such modifications. Commercial loan borrowers that require immaterial modifications such as insignificant interest rate changes, short-term extensions (90 days or less) from the original maturity date, or temporary waivers or extensions of financial covenants which would not constitute material credit actions, are generally not considered to be experiencing financial difficulty and are not included in the disclosure. Insignificant payment deferrals (three months or less in the last 12 months) are also not included in the disclosure.
The following tables present the amortized cost of loans that were modified during the three months ended March 31, 2025 and 2024 by loan class and modification type:
Three Months Ended March 31, 2025
Modification Type
($ in thousands)Term ExtensionPayment DelayCombination: Term Extension/ Payment DelayTotalModification as a % of Loan Class
Commercial:
C&I$15,651 $— $23,749 $39,400 0.23 %
CRE18,362 — — 18,362 0.09 %
Total commercial34,013 — 23,749 57,762 
Consumer:
Single-family residential— 4,061 88 4,149 0.03 %
HELOCs— 975 911 1,886 0.10 %
Total consumer— 5,036 999 6,035 
Total$34,013 $5,036 $24,748 $63,797 
Three Months Ended March 31, 2024
Modification Type
($ in thousands)Term ExtensionPayment DelayCombination: Term Extension/ Payment DelayTotalModification as a % of Loan Class
Commercial:
C&I$4,013 $22,155 $— $26,168 0.16 %
CRE24,488 — 19,325 43,813 0.22 %
Total commercial28,501 22,155 19,325 69,981 
Consumer:
Single-family residential— 3,996 — 3,996 0.03 %
HELOCs— 5,501 517 6,018 0.35 %
Total consumer— 9,497 517 10,014 
Total$28,501 $31,652 $19,842 $79,995 

The following table presents the financial effects of the loan modifications for the three months ended March 31, 2025 and 2024 by loan class and modification type:
Financial Effects of Loan Modifications for the Three Months Ended March 31,
20252024
($ in thousands)Weighted-Average Interest Rate ReductionWeighted-Average Term Extension (in years)
Weighted-Average Payment Delay (in years)
Weighted-Average Interest Rate ReductionWeighted-Average Term Extension (in years)
Weighted-Average Payment Delay (in years)
Commercial:
C&I— %1.11.0— %1.81.7
CRE— %5.00.02.75 %1.51.7
Consumer:
Single-family residential— %10.01.0— %0.00.7
HELOCs— %17.615.40.25 %0.03.2
A modified loan may become delinquent and may result in a payment default (generally 90 days past due) subsequent to modification. The following tables present information on loans that defaulted during the three months ended March 31, 2025 and 2024 that received modifications during the 12 months preceding payment default.
Loans Modified Subsequently Defaulted During the Three Months Ended March 31, 2025
($ in thousands)Term ExtensionPayment DelayCombination: Rate Reduction/ Payment DelayTotal
Commercial:
C&I$— $2,193 $— $2,193 
CRE22,631 — — 22,631 
Total commercial22,631 2,193 — 24,824 
Consumer:
Single-family residential— 3,455 — 3,455 
HELOCs— 2,121 — 2,121 
Total consumer— 5,576 — 5,576 
Total$22,631 $7,769 $— $30,400 
Loans Modified Subsequently Defaulted During the Three Months Ended March 31, 2024
($ in thousands)Term ExtensionPayment DelayCombination: Rate Reduction/ Payment DelayTotal
Commercial:
C&I$7,828 $— $— $7,828 
Total commercial7,828 — — 7,828 
Consumer:
Single-family residential— 3,972 383 4,355 
Total consumer— 3,972 383 4,355 
Total$7,828 $3,972 $383 $12,183 

The Company monitors the performance of modified loans to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following tables present the performance of loans that were modified during the three months ended March 31, 2025 and 2024, that received modifications during the 12 months preceding payment default:
Payment Performance as of March 31, 2025
($ in thousands)Current30 - 89 Days Past Due90+ Days Past DueTotal
Commercial:
C&I$80,147 $3,608 $1,515 $85,270 
CRE66,320 — — 66,320 
Total commercial146,467 3,608 1,515 151,590 
Consumer:
Single-family residential8,122 3,469 3,597 15,188 
HELOCs5,137 2,369 3,796 11,302 
Total consumer13,259 5,838 7,393 26,490 
Total$159,726 $9,446 $8,908 $178,080 
Payment Performance as of March 31, 2024
($ in thousands)Current30 - 89 Days Past Due90+ Days Past DueTotal
Commercial:
C&I$75,193 $— $7,829 $83,022 
CRE76,028 — — 76,028 
Total commercial151,221 — 7,829 159,050 
Consumer:
Single-family residential8,455 4,239 5,075 17,769 
HELOCs6,994 2,536 — 9,530 
Total consumer15,449 6,775 5,075 27,299 
Total$166,670 $6,775 $12,904 $186,349 

As of March 31, 2025 and December 31, 2024, commitments to lend additional funds to borrowers whose loans were modified totaled $8 million and $10 million, respectively,
Allowance for Credit Losses

The Company has a current expected credit losses framework for all financial assets measured at amortized cost and certain off-balance sheet credit exposures. The Company’s allowance for credit losses, which includes both the allowance for loan losses and the allowance for unfunded credit commitments, is calculated with the objective of maintaining a reserve sufficient to absorb losses inherent in our credit portfolios. The measurement of the allowance for credit losses is based on management’s best estimate of lifetime expected credit losses, periodic evaluation of the loan portfolio, lending-related commitments and other relevant factors.

The allowance for credit losses is deducted from the amortized cost basis of a financial asset or a group of financial assets so that the balance sheet reflects the net amount the Company expects to collect. Amortized cost is the principal balance outstanding, net of purchase premiums and discounts, deferred fees and costs, and escrow advances. Subsequent changes in expected credit losses are recognized in net income as a provision for, or a reversal of, credit loss expense.

The allowance for credit losses estimation involves procedures to consider the unique risk characteristics of the portfolio segments. The majority of the Company’s credit exposures that share risk characteristics with other similar exposures are collectively evaluated. The collectively evaluated loans include performing loans and unfunded credit commitments. If an exposure does not share risk characteristics with other exposures, the Company generally estimates expected credit losses on an individual basis.

Allowance for Collectively Evaluated Loans

The allowance for collectively evaluated loans consists of a quantitative component that assesses the different risk factors considered in our models and a qualitative component that considers risk factors external to the models. Each of these components are described below.

Quantitative Component — The Company applies quantitative methods to estimate loan losses by considering a variety of factors such as historical loss experience, the current credit quality of the portfolio, and an economic outlook over the life of the loan. The Company incorporates forward-looking information using macroeconomic scenarios which include variables that are considered key drivers of increases and decreases in credit losses. The Company utilizes a probability-weighted, multiple-scenario forecast approach. These scenarios may consist of a base forecast representing management's view of the most likely outcome, combined with downside or upside scenarios reflecting possible worsening or improving economic conditions. The quantitative models incorporate a probability-weighted calculation of these macroeconomic scenarios over a reasonable and supportable forecast period. If the life of the loans extends beyond the reasonable and supportable forecast period, the Company will consider historical experience or long-run macroeconomic trends over the remaining life of the loans to estimate the allowance for loan losses.
There were no changes to the reasonable and supportable forecast period and reversion to the historical loss experience method for the three months ended March 31, 2025 and 2024.

The following table provides key credit risk characteristics and macroeconomic variables that the Company uses to estimate the expected credit losses by portfolio segment:
Portfolio SegmentRisk CharacteristicsMacroeconomic Variables
C&IAge percentage, size at origination, delinquency status, sector and risk rating
Unemployment rate, Gross Domestic Product (“GDP”), and U.S. Treasury rates
CRE, Multifamily residential, and Construction and land
Delinquency status, maturity date, collateral value, property type, and geographic locationUnemployment rate, GDP, and U.S. Treasury rates
Single-family residential and HELOCsFICO score, delinquency status, maturity date, collateral value, and geographic locationUnemployment rate, GDP, and Home Price Indices
Other consumerLoss rate approach
Immaterial - Macroeconomic variables are included in the qualitative estimate.

Quantitative Component — Allowance for Loan Losses for the Commercial Loan Portfolio

The Company’s C&I lifetime loss rate model estimates the loss rate expected over the life of a loan. This loss rate is applied to the amortized cost basis, excluding accrued interest receivable, to determine expected credit losses. The lifetime loss rate model’s reasonable and supportable period spans eight quarters, thereafter, immediately reverting to the historical average loss rate, expressed through the loan-level lifetime loss rate.

To generate estimates of expected loss at the loan level for CRE, multifamily residential, and construction and land loans, projected probabilities of default (“PDs”) and loss given defaults (“LGDs”) are applied to the estimated exposure at default, considering the term and payment structure of the loan. The forecast of future economic conditions returns to long-run historical economic trends within the reasonable and supportable period.

To estimate the life of a loan under both models, the contractual term of the loan is adjusted for estimated prepayments based on historical prepayment experience.

Quantitative Component — Allowance for Loan Losses for the Consumer Loan Portfolio

For single-family residential and HELOC loans, projected PDs and LGDs are applied to the estimated exposure at default, considering the term and payment structure of the loan, to generate estimates of expected loss at the loan level. The forecast of future economic conditions returns to long-run historical economic trends after the reasonable and supportable period. To estimate the life of a loan for the single-family residential and HELOC loan portfolios, the contractual term of the loan is adjusted for estimated prepayments based on historical prepayment experience. For other consumer loans, the Company uses a loss rate approach.

Qualitative Component — The Company considers the following qualitative factors in the determination of the collectively evaluated allowance if these factors have not already been captured by the quantitative model. Such qualitative factors may include, but are not limited to:

•loan growth trends;
•the volume and severity of past due financial assets, and criticized or adversely classified financial assets;
•the Company’s lending policies and procedures, including changes in lending strategies, underwriting standards, collection, write-off and recovery practices;
•knowledge of a borrower’s operations;
•the quality of the Company’s credit review system;
•the experience, ability and depth of the Company’s management and associates;
•the effect of other external factors such as the regulatory and legal environments, or changes in technology;
•actual and expected changes in international, national, regional, and local economic and business conditions in which the Company operates; and
•risk factors in certain industry sectors not captured by the quantitative models.

The magnitude of the impact of these factors on the Company’s qualitative assessment of the allowance for credit losses changes from period to period according to changes made by management in its assessment of these factors. The extent to which these factors change may be dependent on whether they are already reflected in quantitative loss estimates during the current period and the extent to which changes in these factors diverge from period to period.

While the Company’s allowance methodologies strive to reflect all relevant credit risk factors, there continues to be uncertainty associated with, but not limited to, potential imprecision in the estimation process due to the inherent time lag of obtaining information and normal variations between expected and actual outcomes. The Company may hold additional qualitative reserves that are designed to provide coverage for losses attributable to such risk.

Allowance for Individually Evaluated Loans

When a loan no longer shares similar risk characteristics with other loans, such as in the case of certain nonaccrual loans, the Company estimates the allowance for loan losses on an individual loan basis. The allowance for loan losses for individually evaluated loans is measured as the difference between the recorded value of the loans and their fair value. For loans evaluated individually, the Company uses one of three different asset valuation measurement methods: (1) the fair value of collateral less costs to sell; (2) the present value of expected future cash flows; or (3) the loan's observable market price. If an individually evaluated loan is determined to be collateral dependent, the Company applies the fair value of the collateral less costs to sell method. If an individually evaluated loan is determined not to be collateral dependent, the Company uses the present value of future cash flows or the observable market value of the loan.

•Collateral-Dependent Loans — The allowance of a collateral-dependent loan is limited to the difference between the recorded value and fair value of the collateral less cost of disposal or sale. As of March 31, 2025, collateral-dependent commercial and consumer loans totaled $36 million and $21 million, respectively. In comparison, collateral-dependent commercial and consumer loans totaled $45 million and $23 million, respectively, as of December 31, 2024. The Company's collateral-dependent loans were secured by real estate. As of both March 31, 2025 and December 31, 2024, the collateral value of the properties securing the collateral-dependent loans, net of selling costs, exceeded the recorded value of the majority of the loans.
The following tables summarize the activity in the allowance for loan losses by portfolio segments for the three months ended March 31, 2025 and 2024:
Three Months Ended March 31, 2025
CommercialConsumer
CREResidential Mortgage
($ in thousands)C&ICREMultifamily Residential
Construction and Land
Single-Family ResidentialHELOCsOther ConsumerTotal
Allowance for loan losses, beginning of period$384,319 $218,677 $32,117 $17,497 $44,816 $3,132 $1,494 $702,052 
Provision for (reversal of) credit losses on loans(a)36,370 8,105 201 (305)2,072 1,739 (120)48,062 
Gross charge-offs(988)(13,937)(4)(1,996)(9)— (49)(16,983)
Gross recoveries1,564 54 10 3 50 8 13 1,702 
Total net recoveries (charge-offs)
576 (13,883)6 (1,993)41 8 (36)(15,281)
Foreign currency translation adjustment23 — — — — — — 23 
Allowance for loan losses, end of period$421,288 $212,899 $32,324 $15,199 $46,929 $4,879 $1,338 $734,856 
Three Months Ended March 31, 2024
CommercialConsumer
CREResidential Mortgage
($ in thousands)C&ICREMultifamily ResidentialConstruction and LandSingle-Family ResidentialHELOCsOther ConsumerTotal
Allowance for loan losses, beginning of period$392,685 $170,592 $34,375 $10,469 $55,018 $3,947 $1,657 $668,743 
Provision for (reversal of) credit losses on loans(a)274 19,132 3,032 1,381 899 (432)(132)24,154 
Gross charge-offs(20,998)(2,398)(6)(1,224)— — (58)(24,684)
Gross recoveries1,710 134 17 193 5 48 — 2,107 
Total net (charge-offs) recoveries (19,288)(2,264)11 (1,031)5 48 (58)(22,577)
Foreign currency translation adjustment(40)— — — — — — (40)
Allowance for loan losses, end of period$373,631 $187,460 $37,418 $10,819 $55,922 $3,563 $1,467 $670,280 

In addition to the allowance for loan losses, the Company maintains an allowance for unfunded credit commitments. The Company has three general areas for which it provides the allowance for unfunded credit commitments: (1) recourse obligations for loans sold, (2) letters of credit, and (3) unfunded lending commitments. The allowance for unfunded credit commitments is maintained at a level that management believes to be sufficient to absorb estimated expected credit losses related to unfunded credit facilities. See Note 10 — Commitments and Contingencies to the Consolidated Financial Statements in this Form 10-Q for additional information related to unfunded credit commitments. The following table summarizes the activity in the allowance for unfunded credit commitments for the three months ended March 31, 2025 and 2024:
Three Months Ended March 31,
($ in thousands)20252024
Unfunded credit facilities
Allowance for unfunded credit commitments, beginning of period$39,526 $37,699 
Provision for credit losses on unfunded credit commitments(b)938 846 
Allowance for unfunded credit commitments, end of period$40,464 $38,545 
Provision for credit losses(a) + (b)$49,000 $25,000 
The allowance for credit losses was $775 million as of March 31, 2025, an increase of $33 million, compared with $742 million as of December 31, 2024. The increase in the allowance for credit losses was primarily driven by the Company’s net loan growth, qualitative risk assessment, and economic outlook that reflected continued caution regarding inflation, the high-interest rate environment and potential impacts from the escalating tariff and trade tensions.

The Company considers multiple economic scenarios to develop the estimate of the allowance for loan losses. The scenarios may consist of a baseline forecast representing management's view of the most likely outcome, and downside or upside scenarios that reflect possible worsening or improving economic conditions. As of March 31, 2025, the Company assigned a slightly lower weighting to its baseline scenario, while applying a slightly higher weighting to the downside scenario, as compared with December 31, 2024. The current baseline economic forecast continues to reflect key risks such as still-elevated interest rates, inflation, concerns over global conflicts and oil prices. Compared to December 2024, the March 2025 baseline forecast for GDP growth showed deterioration in the near-term (full year 2025) and beginning to recover mid-2026 and beyond. The unemployment rate has remained low with the March 2025 forecast showing an uptick starting in late 2025, compared with the December 2024 forecast for the same periods. The downside scenario assumed the economy falls into recession in the second quarter of 2025 as a result of tariffs, rising inflation, still-elevated interest rates, global and domestic political tensions, and reduced credit availability. The upside scenario assumed a more optimistic economic outlook, including stronger growth, stable financial market, and full employment starting in the second quarter of 2025.
Loan Transfers, Sales and Purchases

The Company’s primary business focus is on directly originated loans. The Company also purchases loans from and participates in loan financing with other banks. In the normal course of business, the Company also provides other financial institutions with the ability to participate in commercial loans that it originates, by selling loans to such institutions. 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 on the carrying value of loans transferred, sold and purchased for the held-for-investment portfolio, during the three months ended March 31, 2025 and 2024:
Three Months Ended March 31, 2025
CommercialConsumer
CREResidential Mortgage
($ in thousands)C&ICREConstruction and LandSingle-Family ResidentialTotal
Loans transferred from held-for-investment to held-for-sale (1)
$6,356 $20,338 $9,500 $— $36,194 
Sales (2) (3)
$6,356 $20,338 $11,316 $— $38,010 
Purchases$136,943 
(4)
$— $— $87,364 $224,307 
Three Months Ended March 31, 2024
CommercialConsumer
Residential Mortgage
($ in thousands)C&ISingle-Family ResidentialTotal
Loans transferred from held-for-investment to held-for-sale (1)
$199,974 $— $199,974 
Sales (2) (3)
$187,202 $965 $188,167 
Purchases$33,344 
(4)
$74,736 $108,080 
(1)Includes write-downs of $2 million and $1 million 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, 2025, and 2024, respectively.
(2)Includes originated loans sold of $34 million and $92 million for the three months ended March 31, 2025 and 2024, respectively. Originated loans sold consisted primarily of CRE and construction loans for three months ended March 31, 2025 and C&I for three months ended March 31, 2024.
(3)Includes $4 million and $96 million of purchased loans sold in the secondary market for the three months ended March 31, 2025 and 2024, respectively.
(4)C&I loan purchases were comprised of syndicated C&I term loans.