Loans Receivable and Allowance for Credit Losses | Note 8 — Loans Receivable and Allowance for Credit Losses 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 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. The following table presents the composition of the Company’s non-PCI and PCI loans as of March 31, 2017 and December 31, 2016 : ($ in thousands) March 31, 2017 December 31, 2016 Non-PCI Loans (1) PCI Loans (2) Total (1)(2) Non-PCI Loans (1) PCI Loans (2) Total (1)(2) CRE: Income producing $ 7,964,224 $ 337,874 $ 8,302,098 $ 7,667,661 $ 348,448 $ 8,016,109 Construction 562,560 — 562,560 551,560 — 551,560 Land 120,885 1,347 122,232 121,276 1,918 123,194 Total CRE 8,647,669 339,221 8,986,890 8,340,497 350,366 8,690,863 C&I: Commercial business 9,176,747 32,110 9,208,857 8,921,246 38,387 8,959,633 Trade finance 709,215 — 709,215 680,930 — 680,930 Total C&I 9,885,962 32,110 9,918,072 9,602,176 38,387 9,640,563 Residential: Single-family 3,566,739 133,333 3,700,072 3,370,669 139,110 3,509,779 Multifamily 1,643,167 89,528 1,732,695 1,490,285 95,654 1,585,939 Total residential 5,209,906 222,861 5,432,767 4,860,954 234,764 5,095,718 Consumer 2,106,091 17,472 2,123,563 2,057,067 18,928 2,075,995 Total loans held-for-investment $ 25,849,628 $ 611,664 $ 26,461,292 $ 24,860,694 $ 642,445 $ 25,503,139 Allowance for loan losses (263,007 ) (87 ) (263,094 ) (260,402 ) (118 ) (260,520 ) Loans held-for-investment, net $ 25,586,621 $ 611,577 $ 26,198,198 $ 24,600,292 $ 642,327 $ 25,242,619 (1) Includes $(4.7) million and $1.2 million as of March 31, 2017 and December 31, 2016 , respectively, of net deferred loan fees, unamortized premiums and unaccreted discounts. (2) Loans net of ASC 310-30 discount. CRE loans include income producing real estate, construction and land loans where the interest rates may be fixed, variable or hybrid. Included in CRE loans are owner occupied CRE loans, and also non-owner occupied CRE loans where the borrowers rely on income from tenants to service the loan. Commercial business and trade finance in the C&I segment provide financing to businesses in a wide spectrum of industries. Residential loans are comprised of single-family and multifamily loans. The Company offers first lien mortgage loans secured by one-to-four unit residential properties located in its primary lending areas. The Company offers a variety of first lien mortgage loan programs, including fixed rate conforming loans and adjustable rate mortgage loans with initial fixed periods of one to five years, which adjust annually thereafter. Consumer loans are comprised of home equity lines of credit (“HELOCs”), insurance premium financing loans, credit card and auto loans. As of March 31, 2017 and December 31, 2016 , the Company’s HELOCs are the largest component of the consumer loan portfolio, and are secured by one-to-four unit residential properties located in its primary lending areas. The HELOCs loan portfolio is largely comprised of loans originated through a reduced documentation loan program, where a substantial down payment is required, resulting in a low loan-to-value ratio, typically 60% or less at origination. The Company is in a first lien position for many of these reduced documentation HELOCs. These loans have historically experienced low delinquency and default rates. All loans originated are subject to the Company’s underwriting guidelines and loan origination standards. Management believes that the Company’s underwriting criteria and procedures adequately consider the unique risks which may come from these products. The Company conducts a variety of quality control procedures and periodic audits, including review of criteria for lending and legal requirements, to ensure it is in compliance with its origination standards. As of March 31, 2017 and December 31, 2016 , loans totaling $17.16 billion and $16.44 billion , respectively, were pledged to secure borrowings and to provide additional borrowing capacity from the FHLB and the Federal Reserve Bank. Credit Quality Indicators All loans are subject to the Company’s internal and external credit review and monitoring. Loans are risk rated based on an analysis of the current state of the borrower’s credit quality. The analysis of credit quality includes a review of all repayment sources, the borrower’s current payment performance/delinquency, current financial and liquidity status and all other relevant information. For single-family residential loans, payment performance/delinquency is the driving indicator for the risk ratings. Risk ratings are the overall credit quality indicator for the Company and the credit quality indicator utilized for estimating the appropriate allowance for loan losses. The Company utilizes a risk rating system, which can be classified within the following categories: Pass, Watch, Special Mention, Substandard, Doubtful and Loss. The risk ratings reflect the relative strength of the repayment sources. Pass and Watch loans are generally considered to have sufficient sources of repayment in order to repay the loan in full in accordance with all terms and conditions. Special Mention loans are considered to have potential weaknesses that warrant closer attention by management. Special Mention is considered a transitory grade. If potential weaknesses are resolved, the loan is upgraded to a Pass or Watch grade. If negative trends in the borrower’s financial status or other information indicate that the repayment sources may become inadequate, the loan is downgraded to a Substandard grade. Substandard loans are considered to have well-defined weaknesses that jeopardize the full and timely repayment of the loan. Substandard loans have a distinct possibility of loss, if the deficiencies are not corrected. Additionally, when management has assessed a potential for loss but a distinct possibility of loss is not recognizable, the loan is still classified as Substandard. Doubtful loans have insufficient sources of repayment and a high probability of loss. Loss loans are considered to be uncollectible and of such little value that they are no longer considered bankable assets. These internal risk ratings are reviewed routinely and adjusted based on changes in the borrowers’ financial status and the loans’ collectability. The following tables present the credit risk rating for non-PCI loans by portfolio segment as of March 31, 2017 and December 31, 2016 : March 31, 2017 ($ in thousands) Pass/Watch Special Mention Substandard Doubtful Loss Total CRE: Income producing $ 7,800,487 $ 23,362 $ 140,375 $ — $ — $ 7,964,224 Construction 530,278 32,282 — — — 562,560 Land 109,013 — 11,872 — — 120,885 C&I: Commercial business 8,827,318 139,251 185,249 24,929 — 9,176,747 Trade finance 677,654 3,566 27,995 — — 709,215 Residential: Single-family 3,533,047 8,693 24,999 — — 3,566,739 Multifamily 1,619,193 1,284 22,690 — — 1,643,167 Consumer 2,087,485 6,907 11,699 — — 2,106,091 Total $ 25,184,475 $ 215,345 $ 424,879 $ 24,929 $ — $ 25,849,628 December 31, 2016 ($ in thousands) Pass/Watch Special Mention Substandard Doubtful Loss Total Non-PCI Loans CRE: Income producing $ 7,476,804 $ 29,005 $ 161,852 $ — $ — $ 7,667,661 Construction 551,560 — — — — 551,560 Land 107,976 — 13,290 10 — 121,276 C&I: Commercial business 8,559,674 155,276 201,139 5,157 — 8,921,246 Trade finance 635,027 9,435 36,460 — 8 680,930 Residential: Single-family 3,341,015 10,179 19,475 — — 3,370,669 Multifamily 1,462,522 2,268 25,495 — — 1,490,285 Consumer 2,043,405 6,764 6,898 — — 2,057,067 Total $ 24,177,983 $ 212,927 $ 464,609 $ 5,167 $ 8 $ 24,860,694 The following tables present the credit risk rating for PCI loans by portfolio segment as of March 31, 2017 and December 31, 2016 : March 31, 2017 ($ in thousands) Pass/Watch Special Mention Substandard Total PCI Loans CRE: Income producing $ 282,099 $ 573 $ 55,202 $ 337,874 Land 1,012 — 335 1,347 C&I: Commercial business 27,884 680 3,546 32,110 Residential: Single-family 130,031 1,522 1,780 133,333 Multifamily 80,510 — 9,018 89,528 Consumer 15,559 374 1,539 17,472 Total (1) $ 537,095 $ 3,149 $ 71,420 $ 611,664 December 31, 2016 ($ in thousands) Pass/Watch Special Mention Substandard Total PCI Loans CRE: Income producing $ 293,529 $ 3,239 $ 51,680 $ 348,448 Land 1,562 — 356 1,918 C&I: Commercial business 33,885 772 3,730 38,387 Residential: Single-family 136,245 1,239 1,626 139,110 Multifamily 86,190 — 9,464 95,654 Consumer 17,433 316 1,179 18,928 Total (1) $ 568,844 $ 5,566 $ 68,035 $ 642,445 (1) Loans net of ASC 310-30 discount. Nonaccrual and Past Due Loans Non-PCI loans that are 90 or more days past due are generally placed on nonaccrual status. Additionally, non-PCI loans that are not 90 or more 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 March 31, 2017 and December 31, 2016 : March 31, 2017 ($ 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 CRE: Income producing $ 3,132 $ — $ 3,132 $ 11,596 $ 22,120 $ 33,716 $ 7,927,376 $ 7,964,224 Construction — — — — — — 562,560 562,560 Land — — — 47 4,453 4,500 116,385 120,885 C&I: Commercial business 8,478 5 8,483 47,238 44,855 92,093 9,076,171 9,176,747 Trade finance — — — — — — 709,215 709,215 Residential: Single-family 2,211 5,246 7,457 — 5,643 5,643 3,553,639 3,566,739 Multifamily 4,801 904 5,705 1,030 1,192 2,222 1,635,240 1,643,167 Consumer 3,352 444 3,796 156 2,825 2,981 2,099,314 2,106,091 Total $ 21,974 $ 6,599 $ 28,573 $ 60,067 $ 81,088 $ 141,155 $ 25,679,900 $ 25,849,628 December 31, 2016 ($ 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 CRE: Income producing $ 6,233 $ 14,080 $ 20,313 $ 14,872 $ 12,035 $ 26,907 $ 7,620,441 $ 7,667,661 Construction 4,994 — 4,994 — — — 546,566 551,560 Land — — — 433 4,893 5,326 115,950 121,276 C&I: Commercial business 45,052 2,279 47,331 60,511 20,737 81,248 8,792,667 8,921,246 Trade finance — — — 8 — 8 680,922 680,930 Residential: Single-family 9,595 8,076 17,671 — 4,214 4,214 3,348,784 3,370,669 Multifamily 3,951 374 4,325 2,790 194 2,984 1,482,976 1,490,285 Consumer 3,327 3,228 6,555 165 1,965 2,130 2,048,382 2,057,067 Total $ 73,152 $ 28,037 $ 101,189 $ 78,779 $ 44,038 $ 122,817 $ 24,636,688 $ 24,860,694 For information on the policy for recording payments received and resuming accrual of interest on non-PCI loans that are placed on nonaccrual status, see Note 1 — Summary of Significant Accounting Policies to the Consolidated Financial Statements of the Company’s 2016 Form 10-K. 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. Please refer to the discussion on PCI loans within this note for additional details on interest income recognition. As of March 31, 2017 and December 31, 2016 , PCI loans on nonaccrual status totaled $12.0 million and $11.7 million , respectively. Loans in Process of Foreclosure As of March 31, 2017 and December 31, 2016 , the Company had $944 thousand and $3.1 million , respectively, of recorded investment in residential and consumer mortgage loans secured by residential real estate properties, for which formal foreclosure proceedings were in process according to local requirements of the applicable jurisdictions, which were not included in OREO. No foreclosed residential real estate properties were included in total net OREO of $3.6 million as of March 31, 2017 . In comparison, foreclosed residential real estate properties with a carrying amount of $401 thousand were included in total net OREO of $6.7 million as of December 31, 2016 . Troubled Debt Restructurings (“TDRs”) Potential TDRs are individually evaluated and the type of restructuring is selected based on the loan type and the circumstances of the borrower’s financial difficulty in order to maximize the Company’s recovery. A TDR is a modification of the terms of a loan when the Company, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower, it would not otherwise consider. The following table presents the additions to non-PCI TDRs for the three months ended March 31, 2017 and 2016 : Loans Modified as TDRs During the Three Months Ended March 31, ($ in thousands) 2017 2016 Number Pre- Modification Post- Modification (1) Financial (2) Number Pre- Modification Post- Modification (1) Financial (2) CRE: Income producing 1 $ 1,526 $ 1,505 $ — 2 $ 13,775 $ 13,758 $ — Land 2 $ 86 $ — $ — — $ — $ — $ — C&I: Commercial business 2 $ 6,448 $ 4,914 $ 1,273 4 $ 21,614 $ 18,577 $ 97 Trade finance — $ — $ — $ — 2 $ 7,901 $ 8,082 $ — Residential: Single-family — $ — $ — $ — 1 $ 276 $ 272 $ — Consumer — $ — $ — $ — 1 $ 344 $ 345 $ 1 (1) Includes subsequent payments after modification and reflects the balance as of March 31, 2017 and 2016 . (2) The financial impact includes charge-offs and specific reserves recorded at the modification date. The following table presents the non-PCI TDR modifications for the three months ended March 31, 2017 and 2016 by modification type: ($ in thousands) Modification Type During the Three Month Ended March 31, 2017 2016 Principal (1) Principal and Interest (2) Interest Rate Reduction Other Total Principal (1) Principal and Interest (2) Interest Rate Reduction Other Total CRE $ 1,505 $ — $ — $ — $ 1,505 $ 13,730 $ — $ — $ 28 $ 13,758 C&I — 4,914 — — 4,914 19,112 — 3,615 3,932 26,659 Residential — — — — — 272 — — — 272 Consumer — — — — — 345 — — — 345 Total $ 1,505 $ 4,914 $ — $ — $ 6,419 $ 33,459 $ — $ 3,615 $ 3,960 $ 41,034 (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. Subsequent to restructuring, a TDR that becomes delinquent, generally beyond 90 days, is considered to have defaulted. As 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 for loans modified as TDRs within the previous 12 months that have subsequently defaulted during the three months ended March 31, 2017 and 2016 , and were still in default at the respective period end: Loans Modified as TDRs that Subsequently Defaulted During the Three Months Ended March 31, 2017 2016 ($ in thousands) Number of Recorded Number of Recorded C&I: Commercial business 1 $ 2,718 4 $ 966 The amount of additional funds committed to lend to borrowers whose terms have been modified was $4.0 million and $9.9 million as of March 31, 2017 and December 31, 2016 , respectively. Impaired Loans The Company’s loans are grouped into heterogeneous and homogeneous (mostly consumer loans) categories. Classified loans in the heterogeneous category are identified and evaluated for impairment on an individual basis. A loan is considered impaired when, based on current information and events, it is probable that the Company will not be able to collect all scheduled payments of principal or interest due in accordance with the original contractual terms. Impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or, as expedient, at the loan’s observable market price or the fair value of the collateral, if the loan is collateral dependent, less costs to sell. When the value of an impaired loan is less than the recorded investment and the loan is classified as nonperforming and uncollectible, the deficiency is charged-off against the allowance for loan losses. Impaired loans exclude the homogeneous consumer loan portfolio, which is evaluated collectively for impairment. The Company’s impaired loans include predominantly non-PCI loans held-for-investment on nonaccrual status and any non-PCI loans modified in a TDR, which may be on accrual or nonaccrual status. The following tables present information on the non-PCI impaired loans as of March 31, 2017 and December 31, 2016 : March 31, 2017 ($ in thousands) Unpaid Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Total Recorded Investment Related Allowance CRE: Income producing $ 48,832 $ 34,984 $ 9,528 $ 44,512 $ 1,159 Land 5,050 4,453 47 4,500 6 C&I: Commercial business 182,965 101,963 34,031 135,994 6,218 Trade finance 3,449 3,438 — 3,438 — Residential: Single-family 16,132 1,864 13,172 15,036 611 Multifamily 10,132 5,649 3,575 9,224 121 Consumer 4,897 670 3,855 4,525 32 Total $ 271,457 $ 153,021 $ 64,208 $ 217,229 $ 8,147 December 31, 2016 ($ in thousands) Unpaid Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Total Recorded Investment Related Allowance CRE: Income producing $ 50,718 $ 32,507 $ 14,001 $ 46,508 $ 1,263 Land 6,457 5,427 443 5,870 63 C&I: Commercial business 162,239 78,316 42,137 120,453 10,443 Trade finance 5,227 — 5,166 5,166 34 Residential: Single-family 15,435 — 14,335 14,335 687 Multifamily 11,181 5,684 4,357 10,041 180 Consumer 4,016 — 3,682 3,682 31 Total $ 255,273 $ 121,934 $ 84,121 $ 206,055 $ 12,701 The following table presents the average recorded investment and interest income recognized on non-PCI impaired loans during the three months ended March 31, 2017 and 2016 : ($ in thousands) Three Months Ended March 31, 2017 2016 Average Recorded Investment Recognized Interest Income (1) Average Recognized Interest Income (1) CRE: Income producing $ 44,772 $ 35 $ 71,767 $ 391 Land 4,717 — 6,952 9 C&I: Commercial business 138,931 214 94,505 369 Trade finance 4,283 7 13,737 66 Residential: Single-family 15,096 22 18,356 65 Multifamily 9,269 38 22,345 77 Consumer 4,533 12 1,638 16 Total non-PCI impaired loans $ 221,601 $ 328 $ 229,300 $ 993 (1) Includes interest recognized on accruing non-PCI TDRs. Interest payments received on nonaccrual non-PCI loans are reflected as a reduction to principal and not as interest income. Allowance for Credit Losses The following tables present a summary of activities in the allowance for loan losses by portfolio segment for the three months ended March 31, 2017 and 2016 : Three Months Ended March 31, 2017 ($ in thousands) Non-PCI Loans PCI Loans CRE C&I Residential Consumer Total Total Beginning balance $ 72,804 $ 142,166 $ 37,333 $ 8,099 $ 260,402 $ 118 $ 260,520 Provision for (reversal of) loan losses 1,639 1,946 3,835 626 8,046 (31 ) 8,015 Charge-offs (148 ) (7,057 ) — (4 ) (7,209 ) — (7,209 ) Recoveries 593 455 578 142 1,768 — 1,768 Net recoveries (charge-offs) 445 (6,602 ) 578 138 (5,441 ) — (5,441 ) Ending balance $ 74,888 $ 137,510 $ 41,746 $ 8,863 $ 263,007 $ 87 $ 263,094 Three Months Ended March 31, 2016 ($ in thousands) Non-PCI Loans PCI Loans Total CRE C&I Residential Consumer Total Beginning balance $ 81,191 $ 134,597 $ 39,292 $ 9,520 $ 264,600 $ 359 $ 264,959 Provision for (reversal of) loan losses 1,306 4,654 (5,317 ) (226 ) 417 (31 ) 386 Charge-offs (56 ) (5,860 ) (137 ) (1 ) (6,054 ) — (6,054 ) Recoveries 97 686 97 67 947 — 947 Net recoveries (charge-offs) 41 (5,174 ) (40 ) 66 (5,107 ) — (5,107 ) Ending balance $ 82,538 $ 134,077 $ 33,935 $ 9,360 $ 259,910 $ 328 $ 260,238 For further information on accounting policies and the methodology used to estimate the allowance for credit losses and loan charge-offs, see Note 1 — Summary of Significant Accounting Policies to the Consolidated Financial Statements of the Company’s 2016 Form 10-K. The following table presents a summary of activities in the allowance for unfunded credit reserves during the three months ended March 31, 2017 and 2016 : ($ in thousands) Three Months Ended 2017 2016 Beginning balance $ 16,121 $ 20,360 (Reversal of) provision for unfunded credit reserves (947 ) 1,054 Ending balance $ 15,174 $ 21,414 The allowance for unfunded credit reserves is maintained at a level believed by management to be sufficient to absorb estimated probable losses related to unfunded credit facilities. The allowance for unfunded credit reserves is included in Accrued expense and other liabilities on the Consolidated Balance Sheets. See Note 11 — Commitments and Contingencies to the Consolidated Financial Statements for additional information related to unfunded credit reserves. The following tables present the Company’s allowance for loan losses and recorded investments by portfolio segment and impairment methodology as of March 31, 2017 and December 31, 2016 : March 31, 2017 ($ in thousands) CRE C&I Residential Consumer Total Allowance for loan losses Individually evaluated for impairment $ 1,165 $ 6,218 $ 732 $ 32 $ 8,147 Collectively evaluated for impairment 73,723 131,292 41,014 8,831 254,860 Acquired with deteriorated credit quality 86 — 1 — 87 Ending balance $ 74,974 $ 137,510 $ 41,747 $ 8,863 $ 263,094 Recorded investment in loans Individually evaluated for impairment $ 49,012 $ 139,432 $ 24,260 $ 4,525 $ 217,229 Collectively evaluated for impairment 8,598,657 9,746,530 5,185,646 2,101,566 25,632,399 Acquired with deteriorated credit quality (1) 339,221 32,110 222,861 17,472 611,664 Ending balance (1) $ 8,986,890 $ 9,918,072 $ 5,432,767 $ 2,123,563 $ 26,461,292 December 31, 2016 ($ in thousands) CRE C&I Residential Consumer Total Allowance for loan losses Individually evaluated for impairment $ 1,326 $ 10,477 $ 867 $ 31 $ 12,701 Collectively evaluated for impairment 71,478 131,689 36,466 8,068 247,701 Acquired with deteriorated credit quality 112 1 5 — 118 Ending balance $ 72,916 $ 142,167 $ 37,338 $ 8,099 $ 260,520 Recorded investment in loans Individually evaluated for impairment $ 52,378 $ 125,619 $ 24,376 $ 3,682 $ 206,055 Collectively evaluated for impairment 8,288,119 9,476,557 4,836,578 2,053,385 24,654,639 Acquired with deteriorated credit quality (1) 350,366 38,387 234,764 18,928 642,445 Ending balance (1) $ 8,690,863 $ 9,640,563 $ 5,095,718 $ 2,075,995 $ 25,503,139 (1) Loans net of ASC 310-30 discount. Purchased Credit Impaired Loans 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 flow expectation. The cash flows expected over the life of the pools are estimated by an internal cash flow 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. Prepayments 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 received at origination is deemed to be the “nonaccretable difference.” The following table presents the changes in accretable yield for PCI loans for the three months ended March 31, 2017 and 2016 : ($ in thousands) Three Months Ended March 31, 2017 2016 Beginning balance $ 136,247 $ 214,907 Accretion (10,279 ) (22,429 ) Changes in expected cash flows 2,022 (6,487 ) Ending balance $ 127,990 $ 185,991 Loans Held-for-Sale Loans held-for-sale are carried at the lower of cost or fair value. When a determination is made at the time of commitment to originate or purchase loans as held-for-investment, it is the Company’s intent to hold these loans to maturity or for the “foreseeable future,” subject to periodic reviews under the Company’s management evaluation processes, including asset/liability management. When the Company subsequently changes its intent to hold certain loans, the loans are transferred from the loans held-for-investment portfolio to the loans held-for-sale portfolio at the lower of cost or fair value. As of March 31, 2017 , loans held-for-sale amounted to $28.9 million , which were primarily comprised of C&I loans. As of December 31, 2016 , loans held-for-sale amounted to $23.1 million , which were comprised primarily of consumer loans. Transfers of loans held-for-investment to loans held-for-sale were $278.0 million during the three months ended March 31, 2017 . These loan transfers were comprised of C&I loans. In comparison, $308.7 million of loans held-for-investment were transferred to loans held-for-sale during the three months ended March 31, 2016 . These loan transfers were comprised primarily of multifamily residential, C&I and CRE loans. The Company recorded $92 thousand and $1.8 million , respectively, in write-downs to the allowance for loan losses related to loans transferred from loans held-for-investment to loans held-for-sale for the three months ended March 31, 2017 and 2016 . During the three months ended March 31, 2017 , the Company sold $29.3 million in originated loans, which were comprised of C&I and single-family residential loans, resulting in net gains of $1.8 million . In comparison, during the three months ended March 31, 2016 , the Company sold or securitized $256.2 million in originated loans, which were comprised primarily of multifamily residential, C&I and CRE loans, resulting in net gains of $4.3 million . During the same period, the Company recorded $1.1 million in net gains and $641 thousand in mortgage servicing rights, and retained $160.1 million of the senior tranche of the resulting securities from the securitization of $201.7 million of multifamily residential loans. From time to time, the Company purchases and sells loans in the secondary market. During the three months ended March 31, 2017 , the Company purchased $147.2 million of loans, compared to $239.3 million during the three months ended March 31, 2016 . The decrease in the loans purchased for the three months ended March 31, 2017 , compared to the same period in prior year, was primarily due to the purchase of single-family residential loans that were made to low-to-moderate income borrowers during the three months ended March 31, 2016 , while there was no such purchase during the same period in 2017 . Other loan purchases were largely made within the Company’s syndicated loan portfolio. Certain purchased loans were transferred from loans held-for-investment to loans held-for-sale and a write-down to allowance for loan losses was recorded, where appropriate. During the three months ended March 31, 2017 , the Company sold $246.6 million of loans in the secondary market at a net gain of $1.0 million . In comparison, the Company sold $53.9 million of loans in the secondary market during the three months ended March 31, 2016 and no gains or losses were recognized from these sales. For the three months ended March 31, 2017 and 2016 , the Company recorded valuation adjustments of $69 thousand and $2.4 million , respectively, in Net gains on sales of loans on the Consolidated Statements of Income to carry the loans held-for-sale portfolio at the lower of cost or fair value. |