LOANS AND LEASES AND ALLOWANCE FOR LOAN AND LEASE LOSSES | LOANS AND LEASES AND ALLOWANCE FOR LOAN AND LEASE LOSSES The Company's loan and lease portfolio includes Non-Traditional Mortgage (NTM) loans. The Company’s NTM portfolio is comprised of three interest only products: Green Account Loans (Green Loans), which are a type of home equity lines of credit (HELOCs), fixed or adjustable rate hybrid interest only mortgage (Interest Only) loans and a small number of additional loans with the potential for negative amortization. The following table presents the balances in the Company’s loans and leases portfolio as of the dates indicated: ($ in thousands) NTM Loans Traditional Loans and Leases Total Loans and Leases Receivable June 30, 2018 Commercial: Commercial and industrial $ — $ 1,742,559 $ 1,742,559 Commercial real estate — 793,855 793,855 Multifamily — 1,959,965 1,959,965 SBA — 78,092 78,092 Construction — 211,110 211,110 Lease financing — — — Consumer: Single family residential mortgage 815,374 1,358,809 2,174,183 Other consumer 3,502 72,738 76,240 Total loans and leases $ 818,876 $ 6,217,128 $ 7,036,004 Allowance for loan and lease losses (56,678 ) Loans and leases receivable, net $ 6,979,326 December 31, 2017 Commercial: Commercial and industrial $ — $ 1,701,951 $ 1,701,951 Commercial real estate — 717,415 717,415 Multifamily — 1,816,141 1,816,141 SBA — 78,699 78,699 Construction — 182,960 182,960 Lease financing — 13 13 Consumer: Single family residential mortgage 803,355 1,252,294 2,055,649 Other consumer 3,578 103,001 106,579 Total loans and leases $ 806,933 $ 5,852,474 $ 6,659,407 Allowance for loan and lease losses (49,333 ) Loans and leases receivable, net $ 6,610,074 Non-Traditional Mortgage Loans The following table presents the composition of the NTM portfolio as of the dates indicated: June 30, 2018 December 31, 2017 ($ in thousands) Count Amount Percent Count Amount Percent Green Loans (HELOC) - first liens 96 $ 72,720 8.9 % 101 $ 82,197 10.2 % Interest-only - first liens 495 739,053 90.3 % 468 717,484 88.9 % Negative amortization 11 3,601 0.4 % 11 3,674 0.5 % Total NTM - first liens 602 815,374 99.6 % 580 803,355 99.6 % Green Loans (HELOC) - second liens 12 3,502 0.4 % 12 3,578 0.4 % Total NTM - second liens 12 3,502 0.4 % 12 3,578 0.4 % Total NTM loans 614 $ 818,876 100.0 % 592 $ 806,933 100.0 % Total loans and leases $ 7,036,004 $ 6,659,407 % of NTM to total loans and leases 11.6 % 12.1 % Green Loans Green Loans are SFR first and second mortgage lines of credit with a linked checking account that allows all types of deposits and withdrawals to be performed. The loans are generally interest only with a 15 -year balloon payment due at maturity. As a result of their unique payment feature, Green Loans possess higher credit risk due to the potential for negative amortization; however, management believes the risk is mitigated through the Company’s loan terms and underwriting standards, including its policies on loan-to-value (LTV) ratios and the Company’s contractual ability to curtail loans when the value of the underlying collateral declines. The Company discontinued origination of the Green Loan products in 2011. Interest Only Loans Interest only loans are primarily SFR first mortgage loans with payment features that allow interest only payments in initial periods before converting to a fully amortizing loan. Loans with the Potential for Negative Amortization The Company discontinued origination of negative amortization loans in 2007. Negative amortization loans other than Green Loans pose a potentially higher credit risk because of the lack of principal amortization and potential for negative amortization; however, management believes the risk is mitigated through the loan terms and underwriting standards, including the Company’s policies on LTV ratios. Allowance for Loan and Lease Losses The Company has established credit risk management processes that include regular management review of the loan and lease portfolio to identify problem loans and leases. During the ordinary course of business, management becomes aware of borrowers and lessees who may not be able to fulfill the contractual payment requirements of the loan and lease agreements. Such loans and leases are subject to increased monitoring. Consideration is given to placing the loan or lease on non-accrual status, assessing the need for additional ALLL, and partially or fully charging off of the principal balance. The Company maintains the ALLL at a level that is considered adequate to cover the estimated inherent risks in the loan and lease portfolio. The Company also maintains a separate reserve for unfunded loan commitments at a level that is considered adequate to cover the estimated inherent risks. The estimated funding of the loan commitments and credit risk factors determined based on outstanding loans that share similar credit risk exposure are used to determine the adequacy of the reserve. At June 30, 2018 and December 31, 2017 , the reserve for unfunded loan commitments was $4.0 million and $3.7 million , respectively. The credit risk monitoring system is designed to identify impaired and potential problem loans and to perform periodic evaluation of impairment and the adequacy of the allowance for credit losses in a timely manner. In addition, the Board of Directors of the Bank has adopted a credit policy that includes a credit review and control system that it believes is effective in ensuring that the Company maintains an adequate allowance for loan and lease losses. The Board of Directors also provides oversight and guidance for management’s allowance evaluation process. During the three months ended March 31, 2017, the Company, as part of its continuous evaluation of the ALLL methodology and assumptions, determined that it was appropriate to change from a rolling 28 -quarter look-back period to a cumulative look-back period with a pegged (fixed) starting point (the quarter ended March 31, 2008). The Company believes that an extended period of observed credit loss stability warranted the review of a longer historical period that captured a full credit cycle. The Company further enhanced the methodology in the areas of qualitative adjustments and loan segmentation during the second quarter of 2017, and performed an annual update of the loss emergence period during the third quarter of 2017. These updates were designed to be systematic, transparent, and repeatable. The updates on qualitative adjustments and loan segmentation did not have a material impact. The following table presents a summary of activity in the ALLL for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, ($ in thousands) 2018 2017 2018 2017 Balance at beginning of period $ 54,763 $ 42,736 $ 49,333 $ 40,444 Loans and leases charged off (950 ) (2,898 ) (15,589 ) (3,255 ) Recoveries of loans and leases previously charged off 212 44 782 110 Provision for loan and lease losses 2,653 2,503 22,152 5,086 Balance at end of period $ 56,678 $ 42,385 $ 56,678 $ 42,385 During the three months ended March 31, 2018, the Company recorded a charge-off of $13.9 million , which reflected the outstanding balance under a $15.0 million line of credit that was originated during the three months ended March 31, 2018. Subsequent to the granting of the line of credit, representations from the borrower in applying for the line of credit were determined by the Bank to be false, and third party bank account statements provided by the borrower to secure the line of credit were found to be fraudulent. The line of credit was granted after the borrower appeared to have satisfied a pre-condition that the line of credit be fully cash collateralized and secured by a bank account at a third party financial institution pledged to the Bank. As part of the Bank’s credit review and portfolio management process, the line of credit and disbursements were reviewed subsequent to closing and compliance with the borrower’s covenants was monitored. As part of this process, on March 9, 2018, the Bank received information that caused it to believe the existence of the pledged bank account had been misrepresented by the borrower and that the account had previously been closed. The Bank filed an action in federal court pursuing the borrower and other parties and is also considering other available sources of collection and other potential means of mitigating the loss; however, no assurance can be given that it will be successful in this regard. Upon extensive review of the underwriting process for this loan, the Bank determined that this loan was the result of an isolated event of external fraud. The following table presents the activity and balance in the ALLL and the recorded investment, excluding accrued interest, in loans and leases based on the impairment methodology as of or for the three and six months ended June 30, 2018 : ($ in thousands) Commercial and Industrial Commercial Real Estate Multifamily SBA Construction Lease Financing Single Family Residential Mortgage Other Consumer Total ALLL: Balance at March 31, 2018 $ 17,571 $ 5,417 $ 14,219 $ 1,577 $ 3,220 $ — $ 11,969 $ 790 $ 54,763 Charge-offs (276 ) — (8 ) (302 ) — — (364 ) — (950 ) Recoveries 36 — — 167 — 5 — 4 212 Provision (467 ) 315 419 398 199 (5 ) 1,631 163 2,653 Balance at June 30, 2018 $ 16,864 $ 5,732 $ 14,630 $ 1,840 $ 3,419 $ — $ 13,236 $ 957 $ 56,678 Balance at December 31, 2017 $ 14,280 $ 4,971 $ 13,265 $ 1,701 $ 3,318 $ — $ 10,996 $ 802 $ 49,333 Charge-offs (347 ) — (8 ) (683 ) — — (479 ) (14,072 ) (15,589 ) Recoveries 97 — — 232 — 9 436 8 782 Provision 2,834 761 1,373 590 101 (9 ) 2,283 14,219 22,152 Balance at June 30, 2018 $ 16,864 $ 5,732 $ 14,630 $ 1,840 $ 3,419 $ — $ 13,236 $ 957 $ 56,678 Individually evaluated for impairment $ 595 $ — $ — $ 124 $ — $ — $ 461 $ 8 $ 1,188 Collectively evaluated for impairment 16,269 5,732 14,630 1,716 3,419 — 12,775 949 55,490 Total ending ALLL balance $ 16,864 $ 5,732 $ 14,630 $ 1,840 $ 3,419 $ — $ 13,236 $ 957 $ 56,678 Loans: Individually evaluated for impairment $ 5,829 $ — $ — $ 646 $ — $ — $ 20,140 $ 750 $ 27,365 Collectively evaluated for impairment 1,736,730 793,855 1,959,965 77,446 211,110 — 2,154,043 75,490 7,008,639 Total ending loan balances $ 1,742,559 $ 793,855 $ 1,959,965 $ 78,092 $ 211,110 $ — $ 2,174,183 $ 76,240 $ 7,036,004 The following table presents the activity and balance in the ALLL and the recorded investment, excluding accrued interest, in loans and leases based on the impairment methodology as of or for the three and six months ended June 30, 2017 : ($ in thousands) Commercial and Industrial Commercial Real Estate Multifamily SBA Construction Lease Financing Single Family Residential Mortgage Other Consumer Total ALLL: Balance at March 31, 2017 $ 10,888 $ 4,543 $ 11,029 $ 1,146 $ 3,018 $ 5 $ 11,240 $ 867 $ 42,736 Charge-offs (132 ) (113 ) — (293 ) (29 ) — (2,331 ) — (2,898 ) Recoveries — — — 31 — 10 — 3 44 Provision (261 ) 696 (343 ) 200 (15 ) (12 ) 2,100 138 2,503 Balance at June 30, 2017 $ 10,495 $ 5,126 $ 10,686 $ 1,084 $ 2,974 $ 3 $ 11,009 $ 1,008 $ 42,385 Balance at December 31, 2016 $ 7,584 $ 5,467 $ 11,376 $ 939 $ 2,015 $ 6 $ 12,075 $ 982 $ 40,444 Charge-offs (382 ) (113 ) — (293 ) (29 ) — (2,412 ) (26 ) (3,255 ) Recoveries — — — 74 — 29 1 6 110 Provision 3,293 (228 ) (690 ) 364 988 (32 ) 1,345 46 5,086 Balance at June 30, 2017 $ 10,495 $ 5,126 $ 10,686 $ 1,084 $ 2,974 $ 3 $ 11,009 $ 1,008 $ 42,385 Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ 424 $ — $ 424 Collectively evaluated for impairment 10,495 5,121 10,686 1,065 2,974 3 10,585 1,008 41,937 Acquired with deteriorated credit quality — 5 — 19 — — — — 24 Total ending ALLL balance $ 10,495 $ 5,126 $ 10,686 $ 1,084 $ 2,974 $ 3 $ 11,009 $ 1,008 $ 42,385 Loans: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ 9,971 $ 873 $ 10,844 Collectively evaluated for impairment 1,560,264 715,650 1,545,888 74,726 156,246 173 1,768,565 119,680 5,941,192 Acquired with deteriorated credit quality 652 1,121 — 2,528 — — — — 4,301 Total ending loan balances $ 1,560,916 $ 716,771 $ 1,545,888 $ 77,254 $ 156,246 $ 173 $ 1,778,536 $ 120,553 $ 5,956,337 The following table presents loans and leases individually evaluated for impairment by class of loans and leases as of the dates indicated. The recorded investment, excluding accrued interest, presents customer balances net of any partial charge-offs recognized on the loans and leases and net of any deferred fees and costs and any purchase premium or discount. June 30, 2018 December 31, 2017 ($ in thousands) Unpaid Principal Balance Recorded Investment Allowance for Loan and Lease Losses Unpaid Principal Balance Recorded Investment Allowance for Loan and Lease Losses With no related ALLL recorded: Commercial: Commercial and industrial $ 5,270 $ 5,234 $ — $ 471 $ 453 $ — SBA 554 522 — 342 335 — Consumer: Single family residential mortgage 3,989 3,995 — 7,521 7,553 — Other consumer 554 557 — 4,664 4,663 — With an ALLL recorded: Commercial: Commercial and industrial 596 595 595 3,146 3,129 498 SBA 137 124 124 635 609 435 Consumer: Single family residential mortgage 16,042 16,145 461 7,090 7,146 277 Other consumer 220 193 8 157 162 7 Total $ 27,362 $ 27,365 $ 1,188 $ 24,026 $ 24,050 $ 1,217 The following table presents information on impaired loans and leases, disaggregated by class, for the periods indicated: Three Months Ended Six Months Ended ($ in thousands) Average Recorded Investment Interest Income Recognized Cash Basis Interest Recognized Average Recorded Investment Interest Income Recognized Cash Basis Interest Recognized June 30, 2018 Commercial: Commercial and industrial $ 5,900 $ 1 $ 1 $ 5,616 $ 4 $ 4 SBA 654 — — 514 — — Consumer: Single family residential mortgage 20,274 58 47 19,994 115 96 Other consumer 760 3 3 755 6 5 Total $ 27,588 $ 62 $ 51 $ 26,879 $ 125 $ 105 June 30, 2017 Commercial: Construction — — — 764 — — Consumer: Single family residential mortgage 9,985 42 46 10,520 85 89 Other consumer 878 2 2 884 4 3 Total $ 10,863 $ 44 $ 48 $ 12,168 $ 89 $ 92 Past Due Loans and Leases The following table presents the aging of the recorded investment in past due loans and leases, excluding accrued interest receivable (which is not considered to be material), by class of loans and leases as of dates indicated: ($ in thousands) 30 - 59 Days Past Due 60 - 89 Days Past Due Greater than 89 Days Past due Total Past Due Current Total June 30, 2018 NTM loans: Single family residential mortgage $ 790 $ 694 $ — $ 1,484 $ 813,890 $ 815,374 Other consumer — — — — 3,502 3,502 Total NTM loans 790 694 — 1,484 817,392 818,876 Traditional loans and leases: Commercial: Commercial and industrial 2,075 3,509 597 6,181 1,736,378 1,742,559 Commercial real estate — — — — 793,855 793,855 Multifamily — — — — 1,959,965 1,959,965 SBA 138 524 798 1,460 76,632 78,092 Construction 467 — — 467 210,643 211,110 Consumer: Single family residential mortgage 2,647 2,422 9,795 14,864 1,343,945 1,358,809 Other consumer 1,831 — 263 2,094 70,644 72,738 Total traditional loans and leases 7,158 6,455 11,453 25,066 6,192,062 6,217,128 Total $ 7,948 $ 7,149 $ 11,453 $ 26,550 $ 7,009,454 $ 7,036,004 December 31, 2017 NTM loans: Single family residential mortgage $ 9,060 $ 1,879 $ 1,171 $ 12,110 $ 791,245 $ 803,355 Other consumer — — — — 3,578 3,578 Total NTM loans 9,060 1,879 1,171 12,110 794,823 806,933 Traditional loans and leases: Commercial: Commercial and industrial 136 3,595 948 4,679 1,697,272 1,701,951 Commercial real estate — — — — 717,415 717,415 Multifamily — — — — 1,816,141 1,816,141 SBA 3,578 — 1,319 4,897 73,802 78,699 Construction — — — — 182,960 182,960 Lease financing — — — — 13 13 Consumer: Single family residential mortgage 6,862 3,370 6,012 16,244 1,236,050 1,252,294 Other consumer 3,194 413 92 3,699 99,302 103,001 Total traditional loans and leases 13,770 7,378 8,371 29,519 5,822,955 5,852,474 Total $ 22,830 $ 9,257 $ 9,542 $ 41,629 $ 6,617,778 $ 6,659,407 Non-accrual Loans and Leases The following table presents non-accrual loans and leases, and loans past due 90 days or more and still accruing as of the dates indicated: June 30, 2018 December 31, 2017 ($ in thousands) NTM Loans Traditional Loans and Leases Total NTM Loans Traditional Loans and Leases Total Non-accrual loans and leases (1) Commercial: Commercial and industrial $ — $ 5,920 $ 5,920 $ — $ 3,723 $ 3,723 SBA — 1,082 1,082 — 1,781 1,781 Consumer: Single family residential mortgage 1,538 13,294 14,832 1,171 8,176 9,347 Other consumer — 456 456 — 4,531 4,531 Total non-accrual loans and leases $ 1,538 $ 20,752 $ 22,290 $ 1,171 $ 18,211 $ 19,382 Loans past due 90 days or more and still accruing $ — $ — $ — $ — $ — $ — (1) The Company maintained specific reserves in ALLL for these loans, which were individually evaluated for impairment, of $1.1 million and $1.1 million at June 30, 2018 and December 31, 2017 , respectively. Loans in Process of Foreclosure At June 30, 2018 and December 31, 2017 , SFR mortgage loans of $2.6 million and $4.3 million , respectively, were in the process of foreclosure. Troubled Debt Restructurings A modification of a loan constitutes a troubled debt restructuring (TDR) when the Company, for economic or legal reasons related to a borrower’s financial difficulties, grants a concession to the borrower that it would not otherwise consider. The concessions may be granted in various forms, including reduction in the stated interest rate, reduction in the amount of principal amortization, forgiveness of a portion of the loan balance or accrued interest, or extension of the maturity date. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Company’s internal underwriting policy. TDR loans consist of the following as of the dates indicated: June 30, 2018 December 31, 2017 ($ in thousands) NTM Loans Traditional Loans Total NTM Loans Traditional Loans Total Commercial: Commercial and industrial $ — $ 2,746 $ 2,746 $ — $ 2,675 $ 2,675 Consumer: Single family residential mortgage 2,683 2,626 5,309 2,699 2,653 5,352 Other consumer 294 — 294 294 — 294 Total $ 2,977 $ 5,372 $ 8,349 $ 2,993 $ 5,328 $ 8,321 The Company had no commitments to lend to customers with outstanding loans that were classified as TDRs as of June 30, 2018 or December 31, 2017 . The following table summarizes the pre-modification and post-modification balances of the new TDRs for the periods indicated: Three Months Ended Six Months Ended ($ in thousands) Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment June 30, 2018 Commercial: Commercial and industrial — $ — $ — 2 $ 171 $ 163 Total — — — 2 $ 171 $ 163 June 30, 2017 Consumer: Single family residential mortgage 1 1,150 1,160 3 2,416 2,433 Total 1 $ 1,150 $ 1,160 3 $ 2,416 $ 2,433 During the three months ended June 30, 2018 , there were no new TDRs. The following table summarizes new TDRs by modification type for the three months ended June 30, 2017 : Three Months Ended Modification Type Change in Principal Payments and Interest Rates Change in Principal Payments Total ($ in thousands) Count Amount Count Amount Count Amount June 30, 2017 Consumer: Single family residential mortgage 1 $ 1,160 — $ — 1 $ 1,160 Total 1 $ 1,160 — $ — 1 $ 1,160 The following table summarizes new TDRs by modification type for the six months ended June 30, 2018 and 2017 : Six Months Ended Modification Type Change in Principal Payments and Interest Rates Change in Principal Payments Total ($ in thousands) Count Amount Count Amount Count Amount June 30, 2018 Commercial: Commercial and industrial — $ — 2 $ 163 2 $ 163 Total — — 2 $ 163 2 163 June 30, 2017 Consumer: Single family residential mortgage 2 $ 1,290 1 $ 1,143 3 $ 2,433 Total 2 $ 1,290 1 $ 1,143 3 $ 2,433 For the three and six months ended June 30, 2018 , there was one loan with a principal balance of $100 thousand that was modified as a TDR during the past 12 months that had payment defaults during the period. For the three months ended June 30, 2017 , there were no loans that were modified as TDRs during the past 12 months that had payment defaults during the period. For the six months ended June 30, 2017 , there was one loan with a principal balance of $124 thousand that was modified as a TDR during the past 12 months that had payment defaults during the period. Credit Quality Indicators The Company categorizes loans and leases into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company performs historical loss analysis that is combined with a comprehensive loan or lease to value analysis to analyze the associated risks in the current loan and lease portfolio. The Company analyzes loans and leases individually by classifying the loans and leases as to credit risk. This analysis includes all loans and leases delinquent over 60 days and non-homogeneous loans and leases such as commercial and commercial real estate loans and leases. The Company uses the following definitions for risk ratings: Pass : Loans and leases classified as pass are in compliance in all respects with the Bank’s credit policy and regulatory requirements, and do not exhibit any potential or defined weakness as defined under “Special Mention”, “Substandard” or “Doubtful”. Special Mention : Loans and leases classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or lease or of the Company’s credit position at some future date. Substandard : Loans and leases classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans and leases so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Doubtful : Loans and leases classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The following table presents the risk categories for total loans and leases as of the dates indicated: ($ in thousands) Pass Special Mention Substandard Doubtful Total June 30, 2018 NTM loans: Single family residential mortgage $ 811,273 $ 1,577 $ 2,524 $ — $ 815,374 Other consumer 3,502 — — — 3,502 Total NTM loans 814,775 1,577 2,524 — 818,876 Traditional loans and leases: Commercial: Commercial and industrial 1,680,576 16,618 45,365 — 1,742,559 Commercial real estate 778,948 10,798 4,109 — 793,855 Multifamily 1,958,352 — 1,613 — 1,959,965 SBA 70,266 934 6,612 280 78,092 Construction 208,017 2,498 595 — 211,110 Lease financing — — — — — Consumer: Single family residential mortgage 1,338,747 3,846 16,216 — 1,358,809 Other consumer 71,949 315 474 — 72,738 Total traditional loans and leases 6,106,855 35,009 74,984 280 6,217,128 Total $ 6,921,630 $ 36,586 $ 77,508 $ 280 $ 7,036,004 December 31, 2017 NTM loans: Single family residential mortgage $ 800,589 $ 1,595 $ 1,171 $ — $ 803,355 Other consumer 3,578 — — — 3,578 Total NTM loans 804,167 1,595 1,171 — 806,933 Traditional loans and leases: Commercial: Commercial and industrial 1,651,628 33,376 16,947 — 1,701,951 Commercial real estate 713,131 — 4,284 — 717,415 Multifamily 1,815,601 540 — — 1,816,141 SBA 72,417 1,555 4,621 106 78,699 Construction 182,960 — — — 182,960 Lease financing 13 — — — 13 Consumer: Single family residential mortgage 1,240,866 2,282 9,146 — 1,252,294 Other consumer 98,030 422 4,549 — 103,001 Total traditional loans and leases 5,774,646 38,175 39,547 106 5,852,474 Total $ 6,578,813 $ 39,770 $ 40,718 $ 106 $ 6,659,407 Purchases, Sales, and Transfers From time to time, the Company purchases and sells loans in the secondary market. Certain loans are transferred from held-for-investment to held-for-sale at the lower of cost of fair value and any reductions in value on transfer are reflected as write-downs to allowance for loan losses. The Company had no purchases of loans and leases, excluding loans held-for-sale, for the three and six months ended June 30, 2018 and 2017 . The following table presents loans and leases transferred from (to) loans held-for-sale by portfolio segment for the periods indicated: Three Months Ended Six Months Ended ($ in thousands) Transfers from Held-For-Sale Transfers (to) Held-For-Sale Transfers from Held-For-Sale Transfers (to) Held-For-Sale June 30, 2018 Commercial: Multifamily $ — $ (71,449 ) $ — $ (71,449 ) Consumer: Single family residential mortgage — (133,829 ) — (136,013 ) Other consumer — — — (4,362 ) Total $ — $ (205,278 ) $ — $ (211,824 ) June 30, 2017 Commercial: Commercial and industrial $ — $ (3,924 ) $ — $ (3,924 ) Commercial real estate — (1,329 ) — (1,329 ) Multifamily $ — $ — $ — $ (6,583 ) SBA — (1,865 ) — (1,865 ) Construction — (1,528 ) — (1,528 ) Consumer: Single family residential mortgage — (168,043 ) — (403,747 ) Total $ — $ (176,689 ) $ — $ (418,976 ) Purchased Credit Impaired Loans The Company had no PCI loans at June 30, 2018 or December 31, 2017 , due mainly to the sale of seasoned SFR mortgage PCI loans during the year ended December 31, 2017 . The Company had acquired loans through business combinations and purchases of loan pools for which there was evidence of deterioration of credit quality subsequent to origination and it was probable, at acquisition, that all contractually required payments would not be collected. The following table presents a summary of accretable yield, or income expected to be collected, for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, ($ in thousands) 2018 2017 2018 2017 Balance at beginning of period $ — $ 38,691 $ — $ 41,181 Accretion of income — (1,884 ) — (3,833 ) Changes in expected cash flows — — — (225 ) Disposals — (34,570 ) — (34,886 ) Balance at end of period $ — $ 2,237 $ — $ 2,237 During the three months ended June 30, 2017, the Company transferred seasoned SFR mortgage PCI loans with an aggregate unpaid principal balance and aggregate carrying value of $147.5 million and $128.4 million , respectively, to loans held-for-sale. The Company transferred these PCI loans at lower of cost or fair value and recorded a fair value adjustment of $274 thousand against its ALLL. During the three months ended September 30, 2017, all of the transferred seasoned SFR mortgage PCI loans were sold and the Company recognized a net gain on sale of loans of $3.7 million . |