Loans and Allowance for Credit Losses

9 Months Ended

Sep. 30, 2020

Receivables [Abstract]

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

Loans and Allowance for Credit Losses

Loans consisted of the following at the dates indicated (dollars in thousands):

	September 30, 2020				December 31, 2019
	Total		Percent of Total		Total		Percent of Total
Residential and other consumer:
1-4 single family residential	$	4,845,156	20.4	%	$	4,953,936	21.4	%
Government insured residential	1,089,055		4.6	%	698,644		3.0	%
Other consumer loans	6,689		0.1	%	8,539		0.1	%
	5,940,900		25.1	%	5,661,119		24.5	%
Commercial:
Multi-family	1,810,126		7.6	%	2,217,705		9.6	%
Non-owner occupied commercial real estate	4,910,835		20.7	%	5,030,904		21.7	%
Construction and land	263,381		1.1	%	243,925		1.1	%
Owner occupied commercial real estate	2,051,577		8.6	%	2,062,808		8.9	%
Commercial and industrial	4,427,351		18.6	%	4,655,349		20.1	%
PPP	829,798		3.5	%	—		—	%
Pinnacle	1,157,706		4.8	%	1,202,430		5.2	%
Bridge - franchise finance	606,222		2.5	%	627,482		2.6	%
Bridge - equipment finance	530,516		2.2	%	684,794		3.0	%
Mortgage warehouse lending	1,250,903		5.3	%	768,472		3.3	%
	17,838,415		74.9	%	17,493,869		75.5	%
Total loans	23,779,315		100.0	%	23,154,988		100.0	%
Allowance for credit losses	(274,128)				(108,671)
Loans, net	$	23,505,187			$	23,046,317

 Premiums, discounts and deferred fees and costs, excluding the non-credit related discount on PCD loans, totaled $30 million and $50 million at September 30, 2020 and December 31, 2019, respectively. The amortized cost basis of residential PCD loans was $126 million and the related amount of non-credit discount was $125 million at September 30, 2020. The ACL related to PCD residential loans was $1.5 million and $1.7 million at September 30, 2020 and January 1, 2020, the date of initial adoption of ASU 2016-13, respectively.

Included in the table above are direct or sales type finance leases totaling $687 million and $733 million at September 30, 2020 and December 31, 2019, respectively. The amount of income recognized from direct or sales type finance leases for the

three and nine months ended September 30, 2020 and 2019 totaled $5.3 million, $16.0 million, $5.7 million and $16.5 million, respectively and is recorded as interest income on loans in the consolidated statements of income.

During the three and nine months ended September 30, 2020 and 2019, the Company purchased 1-4 single family residential loans totaling $997 million, $2.1 billion, $743 million and $1.6 billion, respectively. Purchases for the three and nine months ended September 30, 2020 and 2019 included $418 million, $947 million, $288 million and $572 million, respectively, of government insured residential loans.

At September 30, 2020 and December 31, 2019, the Company had pledged loans with a carrying value of approximately $10.9 billion and $10.2 billion, respectively, as security for FHLB advances, Federal Reserve discount window capacity and PPPLF borrowings.

At September 30, 2020 and December 31, 2019, accrued interest receivable on loans totaled $105 million and $83 million, respectively, and is included in other assets in the accompanying consolidated balance sheets. The amount of interest income reversed on non-accrual loans was not material for the three and nine months ended September 30, 2020.

Allowance for credit losses 

Activity in the allowance for credit losses is summarized below. The balance at December 31, 2019 and amounts presented for the three and nine months ended September 30, 2019 represent the allowance for loan and leases losses, estimated using an incurred loss methodology. The ACL at September 30, 2020 and activity for the three and nine months then ended were determined using the CECL methodology (in thousands):

	Three Months Ended September 30,
	2020						2019
	Residential and Other Consumer		Commercial		Total		Residential and Other Consumer		Commercial		Total
Beginning balance	$	10,695	$	255,428	$	266,123	$	11,236	$	100,905	$	112,141
Provision	5,331		22,315		27,646		158		1,681		1,839
Charge-offs (1)	—		(23,770)		(23,770)		—		(6,141)		(6,141)
Recoveries	4		4,125		4,129		5		618		623
Ending balance	$	16,030	$	258,098	$	274,128	$	11,399	$	97,063	$	108,462

	Nine Months Ended September 30,
	2020						2019
	Residential and Other Consumer		Commercial		Total		Residential and Other Consumer		Commercial		Total
Beginning balance	$	11,154	$	97,517	$	108,671	$	10,788	$	99,143	$	109,931
Impact of adoption of ASU 2016-13	8,098		19,207		27,305		—		—		—
Balance after adoption of CECL	19,252		116,724		135,976		—		—		—
Provision (recovery)	(3,241)		184,336		181,095		439		8,934		9,373
Charge-offs	(31)		(50,723)		(50,754)		—		(13,985)		(13,985)
Recoveries	50		7,761		7,811		172		2,971		3,143
Ending balance	$	16,030	$	258,098	$	274,128	$	11,399	$	97,063	$	108,462

(1)Charge-offs for the three months ended September 30, 2020 includes $22.1 million related to one commercial and industrial relationship that was risk rated substandard prior to the onset of the COVID-19 pandemic.

The following table presents the components of the provision for credit losses for the periods indicated (in thousands):

	Three Months Ended September 30, 2020		Nine Months Ended September 30, 2020
Amount related to funded portion of loans	$	27,646	$	181,095
Amount related to off-balance sheet credit exposures	(93)		(2,700)
Amount related to accrued interest receivable	1,063		1,063
Provision for credit losses - loans	28,616		179,458
Provision for credit losses - AFS debt securities	616		616
Total provision for credit losses	$	29,232	$	180,074

Credit quality information

The increase in the ACL from January 1, 2020, the date of initial adoption of ASU 2016-13, to September 30, 2020 was reflective of the estimated impact of the emerging COVID-19 pandemic on the trajectory of the economy and on individual borrowers and portfolio sub-segments. The credit quality of the loan portfolio has been and is likely to continue to be impacted by the developing COVID-19 crisis, its impact on the economy broadly and more specifically on the Company's individual borrowers. Significant uncertainty currently exists about the full extent of this impact, and the impact may not be fully reflected in some of the credit quality indicators disclosed below as of September 30, 2020, due to the still evolving trajectory of the pandemic. Delinquency statistics may not be fully reflective of the impact of the COVID-19 crisis due to deferral programs offered to affected borrowers.

Credit quality of loans held for investment is continuously monitored by dedicated residential credit risk management and commercial portfolio management functions. The Company also has a workout and recovery department that monitors the credit quality of criticized and classified loans and an independent internal credit review function.

Credit quality indicators for residential loans

Management considers delinquency status to be the most meaningful indicator of the credit quality of residential and other consumer loans, other than government insured residential loans. Delinquency statistics are updated at least monthly. LTV and FICO scores are also important indicators of credit quality for 1-4 single family residential loans other than government insured loans. FICO scores are generally updated at least annually, and were most recently updated in the third quarter of 2020. LTVs are typically at origination since we do not routinely update residential appraisals. Substantially all of the government insured residential loans are government insured buyout loans, which the Company buys out of GNMA securitizations upon default. For these loans, traditional measures of credit quality are not particularly relevant considering the guaranteed nature of the loans and the underlying business model. Factors that impact risk inherent in the residential portfolio segment include national and regional economic conditions such as levels of unemployment and wages, as well as residential property values.

1-4 Single Family Residential credit exposure, excluding government insured residential loans, based on delinquency status: 

	September 30, 2020
	Amortized Cost By Origination Year
	2020		2019		2018		2017		2016		Prior		Total
Current	$	528,199	$	741,476	$	426,780	$	699,906	$	833,132	$	1,561,448	$	4,790,941
30 - 59 Days Past Due	8,663		6,838		5,691		1,568		1,855		17,284		41,899
60 - 89 Days Past Due	—		—		—		—		24		2,256		2,280
90 Days or More Past Due	—		807		1,761		53		1,004		6,411		10,036
	$	536,862	$	749,121	$	434,232	$	701,527	$	836,015	$	1,587,399	$	4,845,156

	December 31, 2019
	Amortized Cost By Origination Year
	2019		2018		2017		2016		2015		Prior		Total
Current	$	804,913	$	609,814	$	830,710	$	783,318	$	633,833	$	1,225,030	$	4,887,618
30 - 59 Days Past Due	13,915		3,003		3,751		8,419		4,308		12,238		45,634
60 - 89 Days Past Due	1,785		442		137		486		1,766		4,962		9,578
90 Days or More Past Due	—		1,762		914		—		5,030		3,400		11,106
	$	820,613	$	615,021	$	835,512	$	792,223	$	644,937	$	1,245,630	$	4,953,936

1-4 Single Family Residential credit exposure, excluding government insured residential loans, based on LTV: 

	September 30, 2020
	Amortized Cost By Origination Year
LTV	2020		2019		2018		2017		2016		Prior		Total
Less than 61%	$	196,638	$	165,287	$	91,845	$	194,988	$	314,274	$	546,052	$	1,509,084
61% - 70%	150,811		177,825		103,789		133,872		210,631		386,857		1,163,785
71% - 80%	187,963		393,162		210,356		314,092		291,439		627,088		2,024,100
More than 80%	1,450		12,847		28,242		58,575		19,671		27,402		148,187
	$	536,862	$	749,121	$	434,232	$	701,527	$	836,015	$	1,587,399	$	4,845,156

	December 31, 2019
	Amortized Cost By Origination Year
LTV	2019		2018		2017		2016		2015		Prior		Total
Less than 61%	$	171,069	$	134,978	$	183,807	$	228,868	$	197,039	$	372,221	$	1,287,982
61% - 70 %	195,572		128,766		152,502		188,856		154,307		316,031		1,136,034
71% - 80%	442,311		313,779		404,743		338,000		283,202		531,377		2,313,412
More than 80%	11,661		37,498		94,460		36,499		10,389		26,001		216,508
	$	820,613	$	615,021	$	835,512	$	792,223	$	644,937	$	1,245,630	$	4,953,936

1-4 Single Family Residential credit exposure, excluding government insured residential loans, based on FICO score:

	September 30, 2020
	Amortized Cost By Origination Year
FICO	2020		2019		2018		2017		2016		Prior		Total
760 or greater	$	411,055	$	515,046	$	269,976	$	518,064	$	619,639	$	1,084,645	$	3,418,425
720 - 759	94,190		141,462		90,222		116,482		146,092		282,188		870,636
719 or less	31,617		92,613		74,034		66,981		70,284		220,566		556,095
	$	536,862	$	749,121	$	434,232	$	701,527	$	836,015	$	1,587,399	$	4,845,156

	December 31, 2019
	Amortized Cost By Origination Year
FICO	2019		2018		2017		2016		2015		Prior		Total
760 or greater	$	470,057	$	340,716	$	534,017	$	533,804	$	430,706	$	763,807	$	3,073,107
720 - 759	242,806		185,939		200,623		178,139		141,748		307,195		1,256,450
719 or less	107,750		88,366		100,872		80,280		72,483		174,628		624,379
	$	820,613	$	615,021	$	835,512	$	792,223	$	644,937	$	1,245,630	$	4,953,936

Credit quality indicators for commercial loans

Factors that impact risk inherent in commercial portfolio segments include but are not limited to levels of economic activity, health of the national and regional economy, industry trends, patterns of and trends in customer behavior that influence demand for our borrowers' products and services, and commercial real estate values. Internal risk ratings are considered the most meaningful indicator of credit quality for commercial loans. Internal risk ratings are generally indicative of the likelihood that a borrower will default, are a key factor influencing the level and nature of ongoing monitoring of loans and may impact the estimation of the ACL. Internal risk ratings are updated on a continuous basis. Generally, relationships with balances in excess of defined thresholds, ranging from $1 million to $3 million, are re-evaluated at least annually and more frequently if circumstances indicate that a change in risk rating may be warranted. Since the onset of the COVID-19 pandemic, risk ratings have been re-evaluated for a substantial portion of the commercial portfolio, with a focus on portfolio segments we identified for enhanced monitoring and loans that have been modified or for which we granted temporary payment deferrals. Loans exhibiting potential credit weaknesses that deserve management’s close attention and that could result in deterioration of repayment prospects at some future date if not checked or corrected are categorized as special mention. Loans with well-defined credit weaknesses, including payment defaults, declining collateral values, frequent overdrafts, operating losses, increasing balance sheet leverage, inadequate cash flow from current operations, project cost overruns, unreasonable construction delays, past due real estate taxes or exhausted interest reserves, are assigned an internal risk rating of substandard. A loan with a weakness so severe that collection in full is highly questionable or improbable, but because of certain reasonably specific pending factors has not been charged off, will be assigned an internal risk rating of doubtful. 

Commercial credit exposure based on internal risk rating:

	September 30, 2020
	Amortized Cost By Origination Year												Revolving Loans
	2020		2019		2018		2017		2016		Prior				Total
Multi-Family
Pass	$	184,395	$	275,468	$	157,381	$	207,788	$	312,223	$	474,288	$	37,408	$	1,648,951
Special mention	—		—		15,766		11,260		1,850		—		—		28,876
Substandard	—		26,150		—		15,778		14,157		76,214		—		132,299
Total Multi-Family	$	184,395	$	301,618	$	173,147	$	234,826	$	328,230	$	550,502	$	37,408	$	1,810,126
Non-owner occupied commercial real estate
Pass	$	296,417	$	1,144,727	$	751,798	$	457,210	$	512,790	$	683,050	$	103,687	$	3,949,679
Special mention	—		47,096		13,876		67,386		95,819		102,938		—		327,115
Substandard	11,449		86,647		61,170		17,410		233,371		223,994		—		634,041
Total non-owner occupied commercial real estate	$	307,866	$	1,278,470	$	826,844	$	542,006	$	841,980	$	1,009,982	$	103,687	$	4,910,835
Construction and Land
Pass	$	20,155	$	130,156	$	7,690	$	49,021	$	27,092	$	913	$	241	$	235,268
Special mention	—		—		8,083		8,604		4,284		—		—		20,971
Substandard	—		1,423		1,288		—		4,085		346		—		7,142
Total Construction and Land	$	20,155	$	131,579	$	17,061	$	57,625	$	35,461	$	1,259	$	241	$	263,381
Owner occupied commercial real estate
Pass	$	197,281	$	267,705	$	264,479	$	251,357	$	304,613	$	393,316	$	19,841	$	1,698,592
Special mention	2,614		48,328		11,636		65,822		23,023		25,217		17,227		193,867
Substandard	—		20,762		18,767		11,751		23,549		75,149		9,140		159,118
Total owner occupied commercial real estate	$	199,895	$	336,795	$	294,882	$	328,930	$	351,185	$	493,682	$	46,208	$	2,051,577
Commercial and industrial
Pass	$	373,737	$	899,913	$	314,032	$	275,778	$	198,928	$	52,623	$	1,770,311	$	3,885,322
Special mention	11,390		82,659		18,971		1,406		23,127		6,309		52,626		196,488
Substandard	11,978		70,971		67,610		12,037		25,189		30,003		127,753		345,541
Total commercial and industrial	$	397,105	$	1,053,543	$	400,613	$	289,221	$	247,244	$	88,935	$	1,950,690	$	4,427,351
PPP
Pass	$	829,798	$	—	$	—	$	—	$	—	$	—	$	—	$	829,798
PPP	$	829,798	$	—	$	—	$	—	$	—	$	—	$	—	$	829,798
Pinnacle
Pass	$	141,475	$	120,453	$	74,711	$	214,037	$	212,343	$	394,687	$	—	$	1,157,706
Total Pinnacle	$	141,475	$	120,453	$	74,711	$	214,037	$	212,343	$	394,687	$	—	$	1,157,706
Bridge - Franchise Finance
Pass	$	52,422	$	91,804	$	30,647	$	15,771	$	16,455	$	13,191	$	—	$	220,290
Special mention	5,403		89,369		27,752		7,022		6,697		3,395		—		139,638
Substandard	29,908		82,014		81,021		28,821		18,376		5,216		—		245,356
Doubtful	—		—		—		—		938		—		—		938
Total Bridge - Franchise Finance	$	87,733	$	263,187	$	139,420	$	51,614	$	42,466	$	21,802	$	—	$	606,222
Bridge - Equipment Finance
Pass	$	24,073	$	187,592	$	75,598	$	57,313	$	42,307	$	58,139	$	—	$	445,022
Special mention	—		—		20,034		24,992		—		—		—		45,026
Substandard	—		3,452		10,620		26,396		—		—		—		40,468
Total Bridge - Equipment Finance	$	24,073	$	191,044	$	106,252	$	108,701	$	42,307	$	58,139	$	—	$	530,516
Mortgage Warehouse Lending
Pass	$	—	$	—	$	—	$	—	$	—	$	—	$	1,250,903	$	1,250,903
Total Mortgage Warehouse Lending	$	—	$	—	$	—	$	—	$	—	$	—	$	1,250,903	$	1,250,903

At September 30, 2020, the balance of revolving loans converted to term loans was immaterial.

The following tables summarize the Company's commercial credit exposure based on internal risk rating, in aggregate, at the dates indicated (in thousands):

	September 30, 2020
	Multi-Family		Non-Owner Occupied Commercial Real Estate		Construction and Land		Owner Occupied Commercial Real Estate		Commercial and Industrial		PPP		Pinnacle		Bridge - Franchise Finance		Bridge - Equipment Finance		Mortgage Warehouse Lending		Total
Pass	$	1,648,951	$	3,949,679	$	235,268	$	1,698,592	$	3,885,322	$	829,798	$	1,157,706	$	220,290	$	445,022	$	1,250,903	$	15,321,531
Special mention	28,876		327,115		20,971		193,867		196,488		—		—		139,638		45,026		—		951,981
Substandard(1)	132,299		634,041		7,142		159,118		345,541		—		—		245,356		40,468		—		1,563,965
Doubtful	—		—		—		—		—		—		—		938		—		—		938
	$	1,810,126	$	4,910,835	$	263,381	$	2,051,577	$	4,427,351	$	829,798	$	1,157,706	$	606,222	$	530,516	$	1,250,903	$	17,838,415

(1)Includes $1.4 billion of substandard accruing loans at September 30, 2020.

	December 31, 2019
	Multi-Family		Non-Owner Occupied Commercial Real Estate		Construction and Land		Owner Occupied Commercial Real Estate		Commercial and Industrial		Pinnacle		Bridge - Franchise Finance		Bridge - Equipment Finance		Mortgage Warehouse Lending		Total
Pass	$	2,184,771	$	4,932,279	$	240,734	$	1,991,556	$	4,508,563	$	1,202,430	$	562,042	$	663,855	$	768,472	$	17,054,702
Special mention	—		5,831		—		27,870		28,498		—		10,682		—		—		72,881
Substandard (1)	32,934		92,794		3,191		43,382		118,288		—		54,758		20,939		—		366,286
	$	2,217,705	$	5,030,904	$	243,925	$	2,062,808	$	4,655,349	$	1,202,430	$	627,482	$	684,794	$	768,472	$	17,493,869

(1)Includes $180 million of substandard accruing loans at December 31, 2019.

Past Due and Non-Accrual Loans:

The following table presents an aging of loans at the dates indicated (in thousands):

	September 30, 2020										December 31, 2019
	Current		30 - 59 Days Past Due		60 - 89 Days Past Due		90 Days or More Past Due		Total		Current		30 - 59 Days Past Due		60 - 89 Days Past Due		90 Days or More Past Due		Total
1-4 single family residential	$	4,790,941	$	41,899	$	2,280	$	10,036	$	4,845,156	$	4,887,618	$	45,634	$	9,578	$	11,106	$	4,953,936
Government insured residential	382,620		70,183		45,355		590,897		1,089,055		93,560		45,347		30,426		529,311		698,644
Other consumer loans	6,434		233		22		—		6,689		8,539		—		—		—		8,539
Multi-family	1,778,604		23,152		8,370		—		1,810,126		2,217,705		—		—		—		2,217,705
Non-owner occupied commercial real estate	4,709,649		51,512		130,454		19,220		4,910,835		5,015,458		—		928		14,518		5,030,904
Construction and land	263,035		—		—		346		263,381		240,647		2,396		—		882		243,925
Owner occupied commercial real estate	2,036,782		630		1,706		12,459		2,051,577		2,041,352		1,336		4,420		15,700		2,062,808
Commercial and industrial	4,358,670		27,840		4,891		35,950		4,427,351		4,595,847		2,313		4,301		52,888		4,655,349
PPP	829,798		—		—		—		829,798		—		—		—		—		—
Pinnacle	1,157,706		—		—		—		1,157,706		1,202,430		—		—		—		1,202,430
Bridge - franchise finance	577,583		19		13,041		15,579		606,222		610,315		3,840		2,501		10,826		627,482
Bridge - equipment finance	530,516		—		—		—		530,516		677,089		7,705		—		—		684,794
Mortgage warehouse lending	1,250,903		—		—		—		1,250,903		768,472		—		—		—		768,472
	$	22,673,241	$	215,468	$	206,119	$	684,487	$	23,779,315	$	22,359,032	$	108,571	$	52,154	$	635,231	$	23,154,988

Included in the table above is the guaranteed portion of SBA loans past due by 90 days or more totaling $33.6 million and $36.3 million at September 30, 2020 and December 31, 2019, respectively.

Loans contractually delinquent by 90 days or more and still accruing totaled $595 million and $531 million at September 30, 2020 and December 31, 2019, substantially all of which were government insured residential loans. These loans are government insured pool buyout loans, which the Company buys out of GNMA securitizations upon default.

The following table presents information about loans on non-accrual status at the dates indicated (in thousands):

	September 30, 2020				December 31, 2019
	Amortized Cost		Amortized Cost With No Related Allowance		Amortized Cost
Residential and other consumer	$	8,031	$	2,683	$	18,894
Commercial:
Multi-family	—		—		6,138
Non-owner occupied commercial real estate	54,944		27,002		40,097
Construction and land	4,432		4,086		3,191
Owner occupied commercial real estate	23,953		4,835		27,141
Commercial and industrial	72,094		11,898		74,757
Bridge - franchise finance	32,762		2,458		13,631
Bridge - equipment finance	—		—		20,939
	$	196,216	$	52,962	$	204,788

Included in the table above is the guaranteed portion of non-accrual SBA loans totaling $43.6 million and $45.7 million at September 30, 2020 and December 31, 2019, respectively. The amount of additional interest income that would have been recognized on non-accrual loans had they performed in accordance with their contractual terms was approximately $2.7 million and $7.6 million for the three and nine months ended September 30, 2020, respectively and $2.0 million and $6.0 million for the three and nine months ended September 30, 2019, respectively.

Collateral dependent loans:

The following table presents the amortized cost basis of collateral dependent loans at September 30, 2020 (in thousands):

	Amortized Cost		Extent to Which Secured by Collateral
Residential and other consumer	$	3,339	$	3,331
Commercial:
Non-owner occupied commercial real estate	40,348		40,288
Construction and land	4,432		4,432
Owner occupied commercial real estate	15,107		15,107
Commercial and industrial	29,506		17,506
Bridge - franchise finance	19,122		12,724
Total commercial	108,515		90,057
	$	111,854	$	93,388

Collateral for the non-owner occupied commercial real estate and owner-occupied commercial real estate loan classes generally consists of commercial real estate. Collateral for construction and land loans is typically residential or commercial real estate. Collateral for commercial and industrial loans generally consists of equipment, accounts receivable, inventory and other business assets; owner-occupied commercial real estate loans may also be collateralized by these types of assets. Bridge franchise finance loans may be collateralized by franchise value or by equipment. Bridge equipment finance loans are secured by the financed equipment. Residential loans are collateralized by residential real estate. There have been no significant changes to the extent to which collateral secures collateral dependent loans during the nine months ended September 30, 2020.

Foreclosure of residential real estate

The recorded investment in residential loans in the process of foreclosure was $270 million, of which $264 million was government insured, at September 30, 2020 and $257 million, of which $248 million was government insured, at December 31, 2019. The carrying amount of foreclosed residential real estate included in other assets in the accompanying consolidated balance sheet was insignificant at September 30, 2020 and $6 million at December 31, 2019. In response to the COVID-19 pandemic, new foreclosure actions on residential loans have been temporarily suspended.

Troubled debt restructurings

The following table summarizes loans that were modified in TDRs during the periods indicated, as well as loans modified during the twelve months preceding September 30, 2020 and 2019 that experienced payment defaults during the periods indicated (dollars in thousands):

	Three Months Ended September 30,
	2020						2019
	Loans Modified in TDRs  During the Period			TDRs Experiencing Payment Defaults During the Period			Loans Modified in TDRs  During the Period			TDRs Experiencing Payment Defaults During the Period
	Number of TDRs	Amortized Cost		Number of TDRs	Amortized Cost		Number of TDRs	Amortized Cost		Number of TDRs	Amortized Cost
1-4 single family residential	1	$	1,221	—	$	—	—	$	—	—	$	—
Government insured residential	148	24,031		65	10,249		133	21,421		56	8,461
Owner occupied commercial real estate	—	—		—	—		1	939		2	1,654
Commercial and industrial	—	—		—	—		2	4,445		3	1,652
Bridge - franchise finance	—	—		6	8,503		1	12,850		—	—
	149	$	25,252	71	$	18,752	137	$	39,655	61	$	11,767

	Nine Months Ended September 30,
	2020						2019
	Loans Modified in TDRs  During the Period			TDRs Experiencing Payment Defaults During the Period			Loans Modified in TDRs  During the Period			TDRs Experiencing Payment Defaults During the Period
	Number of TDRs	Amortized Cost		Number of TDRs	Amortized Cost		Number of TDRs	Amortized Cost		Number of TDRs	Amortized Cost
1-4 single family residential	2	$	1,422	—	$	—	2	$	560	—	$	—
Government insured residential	213	33,593		99	16,559		171	26,992		58	8,687
Non-owner occupied commercial real estate	1	4,249		1	4,249		1	11,791		1	2,671
Owner occupied commercial real estate	—	—		—	—		1	939		3	1,944
Commercial and industrial	1	305		—	—		7	21,167		3	1,652
Bridge - franchise finance	9	14,554		7	12,081		4	15,715		—	—
	226	$	54,123	107	$	32,889	186	$	77,164	65	$	14,954

TDRs during the three and nine months ended September 30, 2020 and 2019 included interest rate reductions, restructuring of the amount and timing of required periodic payments, extensions of maturity and covenant waivers. Included in TDRs are residential loans to borrowers who have not reaffirmed their debt discharged in Chapter 7 bankruptcy. The total amount of such loans is not material. The majority of loan modifications or deferrals and payment deferrals that took place after the onset of the COVID-19 pandemic have not been categorized as TDRs, in accordance with interagency and authoritative guidance and the provisions of the CARES Act.

Disclosures Prescribed by Legacy GAAP (Before Adoption of ASU 2016-13) for Prior Periods

The following table presents information about the balance of the ALLL and related loans as of December 31, 2019 (in thousands):

	Residential and Other Consumer		Commercial		Total
Allowance for loan and lease losses:
Ending balance	$	11,154	$	97,517	$	108,671
Ending balance: loans individually evaluated for impairment	$	9	$	20,481	$	20,490
Ending balance: loans collectively evaluated for impairment	$	11,145	$	77,036	$	88,181
Ending balance: ACI loans	$	—	$	—	$	—
Loans:
Ending balance	$	5,661,119	$	17,493,869	$	23,154,988
Ending balance: loans individually evaluated for impairment	$	57,117	$	187,788	$	244,905
Ending balance: loans collectively evaluated for impairment	$	5,454,422	$	17,288,901	$	22,743,323
Ending balance: ACI loans	$	149,580	$	17,180	$	166,760

The table below presents information about loans identified as impaired as of December 31, 2019 (in thousands):

	Recorded Investment		UPB		Related Specific Allowance
With no specific allowance recorded:
1-4 single family residential	$	992	$	989	$	—
Government insured residential	53,428		53,350		—
Multi-family	6,138		6,169		—
Non-owner occupied commercial real estate	38,345		38,450		—
Construction and land	3,191		3,155		—
Owner occupied commercial real estate	17,419		17,488		—
Commercial and industrial	10,585		10,574		—
Bridge - franchise finance	4,115		4,117		—
Bridge - equipment finance	6,807		6,793		—
With a specific allowance recorded:
1-4 single family residential	2,697		2,652		9
Owner occupied commercial real estate	2,522		2,509		401
Commercial and industrial	63,531		63,709		13,992
Bridge - franchise finance	21,011		21,050		2,953
Bridge - equipment finance	14,124		14,024		3,135
Total:
Residential and other consumer	$	57,117	$	56,991	$	9
Commercial	187,788		188,038		20,481
	$	244,905	$	245,029	$	20,490

The following table presents the average recorded investment in impaired loans for the period indicated (in thousands):

	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
Residential and other consumer:
1-4 single family residential	$	4,685	$	4,639
Government insured residential	19,865		10,885
	24,550		15,524
Commercial:
Multi-family	21,370		23,955
Non-owner occupied commercial real estate	11,938		10,628
Construction and land	6,188		7,854
Owner occupied commercial real estate	3,406		3,526
Commercial and industrial	27,297		27,879
Commercial lending subsidiaries	53,486		46,860
	123,685		120,702
	$	148,235	$	136,226