Loans held for sale

9 Months Ended

Sep. 30, 2020

Loans held for sale:

Loans held for sale are recorded at fair value, and consist primarily of residential mortgage loans originated to be sold in the secondary market. During the three months ended September 30, 2020, the Company acquired a portfolio of commercial loans, including shared national credits and institutional healthcare loans, as part of the Franklin transaction that the Company has elected to account for as held for sale. As such, these loans are excluded from the allowance for credit losses. Instead, the loans are recorded at fair value with subsequent changes to fair value recognized in earnings. During the three months ended September 30, 2020, the Company recorded gains of $20,378 in 'other noninterest income' related to changes in fair value of this portfolio. The following table summarizes loans held for sale, at fair value, as of the periods presented:


	September 30,		December 31,
	2020		2019
Commercial and industrial	$	241,256	$	—
Residential real estate:
1-4 family mortgage	610,695		262,518
Total loans held for sale, at fair value	$	851,951	$	262,518