LOANS AND ALLOWANCE FOR LOAN LOSSES | LOANS AND ALLOWANCE FOR LOAN LOSSES The following table presents the balances in the Company’s loan portfolios as of the dates indicated: ($ in thousands) June 30, December 31, Commercial: Commercial and industrial $ 1,951,707 $ 1,944,142 Commercial real estate 856,497 867,013 Multifamily 1,598,978 2,241,246 SBA 80,929 68,741 Construction 209,029 203,976 Consumer: Single family residential mortgage 1,961,065 2,305,490 Other consumer 61,365 70,265 Total loans (1) $ 6,719,570 $ 7,700,873 Percentage to total loans 100.0 % 100.0 % Allowance for loan losses (59,523 ) (62,192 ) Loans receivable, net $ 6,660,047 $ 7,638,681 (1) Total loans include deferred loan origination costs/(fees) and premiums/(discounts), net of $16.1 million and $17.7 million , respectively, at June 30, 2019 and December 31, 2018 . Non-Traditional Mortgage Loans ("NTM") The following table presents the composition of the NTM portfolio as of the dates indicated: June 30, 2019 December 31, 2018 ($ in thousands) Count Amount Percent Count Amount Percent Consumer: Single family residential mortgage: Green Loans (HELOC) - first liens (1) 78 $ 61,439 8.2 % 88 $ 67,729 8.2 % Interest-only - first liens (2) 444 680,361 91.0 % 519 753,061 91.1 % Negative amortization (3) 10 3,219 0.4 % 11 3,528 0.4 % Total NTM - first liens 532 745,019 99.7 % 618 824,318 99.7 % Other consumer: Green Loans (HELOC) - second liens (1) 7 2,247 0.3 % 10 2,413 0.3 % Total NTM - second liens 7 2,247 0.3 % 10 2,413 0.3 % Total NTM loans 539 $ 747,266 100.0 % 628 $ 826,731 100.0 % Total loans receivable $ 6,719,570 $ 7,700,873 % of total NTM loans to total loans receivable 11.1 % 10.7 % Green Loans Green Loans are single family residential first and second mortgage lines of credit with a linked checking account that allows all types of deposits and withdrawals to be performed. These loans are generally interest only for a 15 -year term with a balloon payment due at maturity. At June 30, 2019 and December 31, 2018 , $286 thousand and $0 , respectively, of the Company's Green Loans were non-performing. As a result of their unique payment feature, Green Loans possess higher credit risk; however, management believes the risk is mitigated through the Company’s loan terms and underwriting standards, including its policies on LTV ratios and the Company’s contractual ability to curtail loans when the value of the underlying collateral declines. The Company discontinued origination of Green Loans in 2011. Interest Only Loans Interest only loans are primarily single family residential first mortgage loans with payment features that allow interest only payments in initial periods before converting to a fully amortizing loan. At June 30, 2019 and December 31, 2018 , interest only loans totaled $680.4 million and $753.1 million , respectively. At June 30, 2019 and December 31, 2018 , $827 thousand and $0 , respectively, of the interest only loans were non-performing. Loans with the Potential for Negative Amortization Negative amortization loans totaled $3.2 million and $3.5 million at June 30, 2019 and December 31, 2018 , respectively. The Company discontinued origination of negative amortization loans in 2007. At June 30, 2019 and December 31, 2018 , none of the loans with the potential for negative amortization were non-performing. These loans pose a potentially higher credit risk because of the lack of principal amortization and potential for negative amortization; however, management believes the credit risk associated with these loans is mitigated through the loan terms and underwriting standards, including the Company’s policies on LTV ratios. Allowance for Loan Losses The Company has established credit risk management processes that include regular management review of the loan portfolio to identify problem loans. During the ordinary course of business, management may become aware of borrowers and lessees who may not be able to fulfill the contractual payment requirements of the loan agreements. Such loans 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 partial or full charge off the principal balance. The Company maintains the ALLL at a level that is considered adequate to cover the estimated incurred losses in the loan portfolio. The Company also maintains a separate reserve for unfunded loan commitments at a level that is considered adequate to cover the estimated incurred loss. The estimated funding of the loan commitments and credit risk factors are determined based on outstanding loans that share similar credit risk exposure are used to determine the adequacy of the reserve. At June 30, 2019 and December 31, 2018 , the reserve for unfunded loan commitments was $4.3 million and $4.6 million , respectively, which are included in Accrued Expenses and Other Liabilities on the Consolidated Statements of Financial Condition. The credit risk monitoring system is designed to identify impaired and potential problem loans, and to perform periodic evaluation of impairment and the adequacy of the allowance for credit losses in a timely manner. In addition, the Board of Directors of the Bank has adopted a credit policy that includes a credit review and control system that it believes should be effective in ensuring that the Company maintains an adequate allowance for loan losses. The Board of Directors also provides oversight and guidance for management’s allowance evaluation process. The following table presents a summary of activity in the ALLL for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, ($ in thousands) 2019 2018 2019 2018 Balance at beginning of period $ 63,885 $ 54,763 $ 62,192 $ 49,333 Loans charged off (2,451 ) (950 ) (3,514 ) (15,589 ) Recoveries of loans previously charged off 76 212 320 782 Net charge-offs (2,375 ) (738 ) (3,194 ) (14,807 ) (Reversal of) provision for loan losses (1,987 ) 2,653 525 22,152 Balance at end of period $ 59,523 $ 56,678 $ 59,523 $ 56,678 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 $15.0 million line of credit that was originated during the three months ended March 31, 2018. Subsequent to the granting of the line of credit, representations from the borrower in applying for the line of credit were determined by the Bank to be false, and third party bank account statements provided by the borrower to secure the line of credit were found to be fraudulent. The line of credit was granted after the borrower appeared to have satisfied a pre-condition that the line of credit be fully cash collateralized and secured by a bank account at a third party financial institution pledged to the Bank. As part of the Bank’s credit review and portfolio management process, the line of credit and disbursements were reviewed subsequent to closing and compliance with the borrower’s covenants was monitored. As part of this process, on March 9, 2018, the Bank received information that caused it to believe the existence of the pledged bank account had been misrepresented by the borrower and that the account had previously been closed. The Bank filed an action in Federal court pursuing the borrower and other parties. That action was voluntarily dismissed by the Bank without prejudice, and a substantially similar action was filed in Los Angeles County Superior Court. The Bank is also considering other available sources of collection and other potential means of mitigating the loss; however, no assurance can be given that it will be successful in this regard. Upon extensive review of the underwriting process for this loan, the Bank determined that this loan was the result of an isolated event of external fraud. The following table presents the activity and balance in the ALLL and the recorded investment, excluding accrued interest, in loans based on the impairment methodology as of or for the three and six months ended June 30, 2019 : ($ 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, 2019 $ 18,893 $ 6,838 $ 18,898 $ 3,057 $ 3,453 $ — $ 12,142 $ 604 $ 63,885 Charge-offs (2,022 ) — (6 ) 8 — — (425 ) (6 ) (2,451 ) Recoveries 11 — — 60 — 3 — 2 76 Net charge-offs (2,011 ) — (6 ) 68 — 3 (425 ) (4 ) (2,375 ) Provision (reversal) 4,647 39 (6,267 ) (5 ) 262 (3 ) (645 ) (15 ) (1,987 ) Balance at June 30, 2019 $ 21,529 $ 6,877 $ 12,625 $ 3,120 $ 3,715 $ — $ 11,072 $ 585 $ 59,523 Balance at December 31, 2018 $ 18,191 $ 6,674 $ 17,970 $ 1,827 $ 3,461 $ — $ 13,128 $ 941 $ 62,192 Charge-offs (2,115 ) — (6 ) (348 ) — — (951 ) (94 ) (3,514 ) Recoveries 44 — — 101 — 6 150 19 320 Net charge-offs (2,071 ) — (6 ) (247 ) — 6 (801 ) (75 ) (3,194 ) Provision 5,409 203 (5,339 ) 1,540 254 (6 ) (1,255 ) (281 ) 525 Balance at June 30, 2019 $ 21,529 $ 6,877 $ 12,625 $ 3,120 $ 3,715 $ — $ 11,072 $ 585 $ 59,523 Individually evaluated for impairment $ 1,239 $ — $ — $ 1,563 $ — $ — $ — $ 22 $ 2,824 Collectively evaluated for impairment 20,290 6,877 12,625 1,557 3,715 — 11,072 563 56,699 Total ending ALLL balance $ 21,529 $ 6,877 $ 12,625 $ 3,120 $ 3,715 $ — $ 11,072 $ 585 $ 59,523 Loans: Individually evaluated for impairment $ 20,429 $ — $ — $ 3,262 $ 2,519 $ — $ 21,021 $ 1,169 $ 48,400 Collectively evaluated for impairment 1,931,278 856,497 1,598,978 77,667 206,510 — 1,940,044 60,196 6,671,170 Total ending loan balances $ 1,951,707 $ 856,497 $ 1,598,978 $ 80,929 $ 209,029 $ — $ 1,961,065 $ 61,365 $ 6,719,570 The following table presents the activity and balance in the ALLL and the recorded investment, excluding accrued interest, in loans 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 Net charge-offs (240 ) — (8 ) (135 ) — 5 (364 ) 4 (738 ) Provision (reversal) (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 Net charge-offs (250 ) — (8 ) (451 ) — 9 (43 ) (14,064 ) (14,807 ) 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 loans individually evaluated for impairment by class of loans 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 net of any deferred fees and costs and any purchase premium or discount. June 30, 2019 December 31, 2018 ($ in thousands) Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Unpaid Principal Balance Recorded Investment Allowance for Loan Losses With no related ALLL recorded: Commercial: Commercial and industrial $ 18,434 $ 18,404 $ — $ 5,491 $ 5,455 $ — Commercial real estate — — — — — — SBA 1,320 1,251 — 1,668 1,588 — Construction 2,519 2,519 — — — — Consumer: Single family residential mortgage 20,938 21,021 — 12,115 12,161 — Other consumer 1,167 1,147 — 469 469 — With an ALLL recorded: Commercial: Commercial and industrial 2,025 2,025 1,239 — — — SBA 2,107 2,011 1,563 823 788 562 Consumer: Single family residential mortgage — — — 5,993 6,032 161 Other consumer 22 22 22 468 452 106 Total $ 48,532 $ 48,400 $ 2,824 $ 27,027 $ 26,945 $ 829 The following table presents information on impaired loans, 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, 2019 Commercial: Commercial and industrial $ 20,794 $ 255 $ 254 $ 12,921 $ 255 $ 254 Commercial real estate — — — 289 — — SBA 3,297 4 4 3,571 8 8 Construction 2,519 — — 2,519 — — Consumer: Single family residential mortgage 21,092 58 48 20,208 116 97 Other consumer 1,177 4 3 1,011 7 6 Total $ 48,879 $ 321 $ 309 $ 40,519 $ 386 $ 365 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 Past Due Loans The following table presents the aging of the recorded investment in past due loans, excluding accrued interest receivable (which is not considered to be material), by class of loans 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, 2019 NTM loans: Single family residential mortgage $ 19,960 $ — $ 827 $ 20,787 $ 724,232 $ 745,019 Other consumer — — — — 2,247 2,247 Total NTM loans 19,960 — 827 20,787 726,479 747,266 Traditional loans: Commercial: Commercial and industrial 1,063 997 4,017 6,077 1,945,630 1,951,707 Commercial real estate — — — — 856,497 856,497 Multifamily — — — — 1,598,978 1,598,978 SBA 944 73 2,672 3,689 77,240 80,929 Construction — — 2,519 2,519 206,510 209,029 Consumer: Single family residential mortgage 7,447 3,645 6,683 17,775 1,198,271 1,216,046 Other consumer 514 295 554 1,363 57,755 59,118 Total traditional loans 9,968 5,010 16,445 31,423 5,940,881 5,972,304 Total $ 29,928 $ 5,010 $ 17,272 $ 52,210 $ 6,667,360 $ 6,719,570 December 31, 2018 NTM loans: Single family residential mortgage $ 7,430 $ 617 $ — $ 8,047 $ 816,271 $ 824,318 Other consumer — — — — 2,413 2,413 Total NTM loans 7,430 617 — 8,047 818,684 826,731 Traditional loans: Commercial: Commercial and industrial 350 1,596 3,340 5,286 1,938,856 1,944,142 Commercial real estate — 582 — 582 866,431 867,013 Multifamily 356 — — 356 2,240,890 2,241,246 SBA 551 77 862 1,490 67,251 68,741 Construction — 939 — 939 203,037 203,976 Consumer: Single family residential mortgage 7,321 3,160 9,198 19,679 1,461,493 1,481,172 Other consumer 3,132 573 446 4,151 63,701 67,852 Total traditional loans 11,710 6,927 13,846 32,483 6,841,659 6,874,142 Total $ 19,140 $ 7,544 $ 13,846 $ 40,530 $ 7,660,343 $ 7,700,873 Non-accrual Loans The following table presents non-accrual loans as of the dates indicated: June 30, 2019 December 31, 2018 ($ in thousands) NTM Loans Traditional Loans Total NTM Loans Traditional Loans Total Non-accrual loans Commercial: Commercial and industrial $ — $ 5,716 $ 5,716 $ — $ 5,455 $ 5,455 Commercial real estate — — — — — — SBA — 3,440 3,440 — 2,574 2,574 Construction — 2,519 2,519 — — — Consumer: Single family residential mortgage 1,113 14,836 15,949 — 12,929 12,929 Other consumer — 875 875 — 627 627 Total non-accrual loans $ 1,113 $ 27,386 $ 28,499 $ — $ 21,585 $ 21,585 At June 30, 2019 and December 31, 2018 , $275 thousand and $470 thousand of loans were past due 90 days or more and still accruing. Loans in Process of Foreclosure At June 30, 2019 and December 31, 2018 , consumer mortgage loans of $8.8 million and $5.1 million , respectively, were secured by residential real estate properties for which formal foreclosure proceedings were in process according to local requirements of the applicable jurisdiction. Troubled Debt Restructurings A modification of a loan constitutes a troubled debt restructuring (TDR) when the Company, for economic or legal reasons related to a borrower’s financial difficulties, grants a concession to the borrower that it would not otherwise consider. The concessions may be granted in various forms, including reduction in the stated interest rate, reduction in the amount of principal amortization, forgiveness of a portion of the loan balance or accrued interest, or extension of the maturity date. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Company’s internal underwriting policy. Troubled debt restructured loans consisted of the following as of the dates indicated: June 30, 2019 December 31, 2018 ($ in thousands) NTM Loans Traditional Loans Total NTM Loans Traditional Loans Total Commercial: Commercial and industrial $ — $ 16,250 $ 16,250 $ — $ 2,276 $ 2,276 SBA — 1,057 1,057 — 187 187 Consumer: Single family residential mortgage 2,653 2,419 5,072 2,668 2,596 5,264 Other consumer 294 — 294 294 — 294 Total $ 2,947 $ 19,726 $ 22,673 $ 2,962 $ 5,059 $ 8,021 The Company did not have any commitments to lend to customers with outstanding loans that were classified as TDRs as of June 30, 2019 or December 31, 2018 . Accruing TDRs were $20.2 million and non-accrual TDRs were $2.4 million at June 30, 2019 compared to accruing TDRs of $5.7 million and non-accrual TDRs of $2.3 million at December 31, 2018 . The following table summarizes the pre-modification and post-modification balances of the new TDRs for the periods indicated: Three Months Ended Six Months Ended ($ 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, 2019 Commercial: Commercial and industrial 10 $ 17,339 $ 17,020 10 $ 17,339 $ 17,020 SBA 2 3,214 869 2 3,214 869 Consumer: Single family residential mortgage — — — — — — Other consumer — $ — $ — — $ — $ — Total 12 20,553 17,889 12 $ 20,553 $ 17,889 June 30, 2018 Commercial: Commercial and industrial — $ — $ — 2 $ 171 $ 163 Total — $ — $ — 2 $ 171 $ 163 The Company considers a TDR to be in payment default once it becomes 30 days or more past due following a modification. During the six months ended June 30, 2019 and 2018 , there were no loans that were modified as TDRs during the past 12 months that had subsequent payment defaults during the periods. The following table summarizes TDRs by modification type for the periods indicated: 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, 2019 Commercial: Commercial and industrial 10 $ 17,020 — $ — 10 $ 17,020 SBA 2 $ 869 — $ — 2 $ 869 Total 12 $ 17,889 — $ — 12 $ 17,889 June 30, 2018 Total — $ — — $ — — $ — 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, 2019 Commercial: Commercial and industrial 10 $ 17,020 — $ — 10 $ 17,020 SBA 2 $ 869 — $ — 2 $ 869 Total 12 $ 17,889 — $ — 12 $ 17,889 June 30, 2018 Commercial: Commercial and industrial — $ — 2 $ 163 2 $ 163 Total — $ — 2 $ 163 2 $ 163 Credit Quality Indicators The Company categorizes loans 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 individually by classifying the loans as to credit risk. This analysis includes all loans delinquent over 60 days and non-homogeneous loans such as commercial and commercial real estate loans. The Company uses the following definitions for risk ratings: Pass : Loans 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 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 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 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 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 as of the dates indicated: ($ in thousands) Pass Special Mention Substandard Doubtful Total June 30, 2019 NTM loans: Single family residential mortgage $ 729,845 $ 12,751 $ 2,423 $ — $ 745,019 Other consumer 2,247 — — — 2,247 Total NTM loans 732,092 12,751 2,423 — 747,266 Traditional loans: Commercial: Commercial and industrial 1,844,472 50,702 56,533 — 1,951,707 Commercial real estate 832,173 14,519 9,805 — 856,497 Multifamily 1,581,629 11,488 5,861 — 1,598,978 SBA 66,448 4,074 9,605 802 80,929 Construction 194,842 9,172 5,015 — 209,029 Consumer: Single family residential mortgage 1,193,532 6,017 15,980 517 1,216,046 Other consumer 57,177 471 1,470 — 59,118 Total traditional loans 5,770,273 96,443 104,269 1,319 5,972,304 Total $ 6,502,365 $ 109,194 $ 106,692 $ 1,319 $ 6,719,570 December 31, 2018 NTM loans: Single family residential mortgage $ 811,056 $ 10,966 $ 2,296 $ — $ 824,318 Other consumer 2,413 — — — 2,413 Total NTM loans 813,469 10,966 2,296 — 826,731 Traditional loans: Commercial: Commercial and industrial 1,859,569 41,302 43,271 — 1,944,142 Commercial real estate 851,604 11,376 4,033 — 867,013 Multifamily 2,239,301 — 1,945 — 2,241,246 SBA 53,433 6,114 8,340 854 68,741 Construction 197,851 3,606 2,519 — 203,976 Consumer: Single family residential mortgage 1,461,721 2,602 16,849 — 1,481,172 Other consumer 66,228 979 645 — 67,852 Total traditional loans 6,729,707 65,979 77,602 854 6,874,142 Total $ 7,543,176 $ 76,945 $ 79,898 $ 854 $ 7,700,873 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 or 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, excluding loans held-for-sale, for the three and six months ended June 30, 2019 and 2018 . The following table presents loans 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, 2019 Commercial: Commercial real estate $ — $ (573 ) $ — $ (573 ) Multifamily — (752,087 ) — (752,087 ) Consumer: Single family residential mortgage $ — $ (131,315 ) $ — $ (374,679 ) Total $ — $ (883,975 ) $ — $ (1,127,339 ) 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 ) Included in transfers to loans held for sale is $573.9 million in multifamily loans from loans held-for-investment related to our pending Freddie Mac multifamily securitization which is expected to close during the third quarter of 2019. The loans included in the securitization have a weighted average coupon of 3.79% and a weighted average term to initial reset of 3.5 years . The related mortgage servicing rights will also be sold. In connection with the anticipated securitization, during the second quarter of 2019 , the Company entered into interest rate swap agreements with a combined notional value of $543.4 million to offset variability in fair value of the related loans as a result of changes in market interest rates. During the three months ended June 30, 2019 , the Company recognized a $9.6 million unrealized loss. The $9.6 million unrealized loss on these interest rate swaps was due to a decline in interest rates since their execution and is expected to be primarily offset by the anticipated gain in fair value of the loans sold into the securitization in the third quarter. Subsequent to June 30, 2019, this securitization was completed (refer to Note 20 — Subsequent Events for more information). During the three and six months ended June 30, 2019 , the Company sold $131.5 million and $374.7 million , respectively, in single family residential loans, resulting in a gain of $125 thousand and $1.8 million , respectively. During the three and six months ended June 30, 2019 , the Company sold $178.2 million and $178.2 million , respectively, in multifamily residential loans, resulting in a gain of $2.9 million and $2.9 million , respectively. |