LOANS AND CREDIT QUALITY | LOANS AND CREDIT QUALITY: For a detailed discussion of loans and credit quality, including accounting policies and the methodology used to estimate the allowance for credit losses, see Note 1, Summary of Significant Accounting Policies, and Note 5 , Loans and Credit Quality, within our 2016 Annual Report on Form 10-K. The Company's portfolio of loans held for investment is divided into two portfolio segments, consumer loans and commercial loans, which are the same segments used to determine the allowance for loan losses. Within each portfolio segment, the Company monitors and assesses credit risk based on the risk characteristics of each of the following loan classes: single family and home equity and other loans within the consumer loan portfolio segment and commercial real estate, multifamily, construction/land development and commercial business loans within the commercial loan portfolio segment. Loans held for investment consist of the following: (in thousands) At September 30, At December 31, Consumer loans Single family (1) $ 1,269,484 $ 1,083,822 Home equity and other 436,755 359,874 1,706,239 1,443,696 Commercial loans Commercial real estate 986,421 871,563 Multifamily 747,171 674,219 Construction/land development 653,132 636,320 Commercial business 245,859 223,653 2,632,583 2,405,755 4,338,822 3,849,451 Net deferred loan fees and costs 11,458 3,577 4,350,280 3,853,028 Allowance for loan losses (37,055 ) (34,001 ) $ 4,313,225 $ 3,819,027 (1) Includes $5.5 million and $18.0 million at September 30, 2017 and December 31, 2016 , respectively, of loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations. Loans in the amount of $1.75 billion and $1.59 billion at September 30, 2017 and December 31, 2016 , respectively, were pledged to secure borrowings from the FHLB as part of our liquidity management strategy. Additionally, loans totaling $724.9 million and $554.7 million at September 30, 2017 and December 31, 2016 , respectively, were pledged to secure borrowings from the Federal Reserve Bank. The FHLB and Federal Reserve Bank do not have the right to sell or re-pledge these loans. Credit Risk Concentrations Concentrations of credit risk arise when a number of customers are engaged in similar business activities or activities in the same geographic region, or when they have similar economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic conditions. Loans held for investment are primarily secured by real estate located in the Pacific Northwest, California and Hawaii. At September 30, 2017 , we had concentrations representing 10% or more of the total portfolio by state and property type for the loan classes of single family and commercial real estate within the state of Washington, which represented 14.4% and 13.2% of the total portfolio, respectively. Additionally, we had concentrations representing 10% or more of the total portfolio by state and property type for the loan class of single family within the state of California, which represented 10.2% of the total portfolio. At December 31, 2016 we had concentrations representing 10% or more of the total portfolio by state and property type for the loan classes of single family and commercial real estate within the state of Washington, which represented 13.8% and 14.4% of the total portfolio, respectively. Credit Quality Management considers the level of allowance for loan losses to be appropriate to cover credit losses inherent within the loans held for investment portfolio as of September 30, 2017 . In addition to the allowance for loan losses, the Company maintains a separate allowance for losses related to unfunded loan commitments, and this amount is included in accounts payable and other liabilities on the consolidated statements of financial condition. Collectively, these allowances are referred to as the allowance for credit losses. For further information on the policies that govern the determination of the allowance for loan losses levels, see Note 1, Summary of Significant Accounting Policies, within our 2016 Annual Report on Form 10-K. Activity in the allowance for credit losses was as follows. Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2017 2016 2017 2016 Allowance for credit losses (roll-forward): Beginning balance $ 37,470 $ 34,001 $ 35,264 $ 30,659 Provision for credit losses 250 1,250 750 3,750 Recoveries, net of charge-offs 475 (18 ) 2,181 824 Ending balance $ 38,195 $ 35,233 $ 38,195 $ 35,233 Components: Allowance for loan losses $ 37,055 $ 33,975 $ 37,055 $ 33,975 Allowance for unfunded commitments 1,140 1,258 1,140 1,258 Allowance for credit losses $ 38,195 $ 35,233 $ 38,195 $ 35,233 Activity in the allowance for credit losses by loan portfolio and loan class was as follows. Three Months Ended September 30, 2017 (in thousands) Beginning Charge-offs Recoveries (Reversal of) Provision Ending Consumer loans Single family $ 8,288 $ — $ 2 $ 791 $ 9,081 Home equity and other 6,856 (72 ) 428 (219 ) 6,993 15,144 (72 ) 430 572 16,074 Commercial loans Commercial real estate 7,455 — — 46 7,501 Multifamily 4,059 — — (3 ) 4,056 Construction/land development 8,226 — 172 (451 ) 7,947 Commercial business 2,586 (201 ) 146 86 2,617 22,326 (201 ) 318 (322 ) 22,121 Total allowance for credit losses $ 37,470 $ (273 ) $ 748 $ 250 $ 38,195 Three Months Ended September 30, 2016 (in thousands) Beginning Charge-offs Recoveries (Reversal of) Provision Ending Consumer loans Single family $ 8,294 $ (42 ) $ 1 $ 995 $ 9,248 Home equity and other 5,400 (356 ) 192 512 5,748 13,694 (398 ) 193 1,507 14,996 Commercial loans Commercial real estate 6,045 — — 80 6,125 Multifamily 2,048 — — 49 2,097 Construction/land development 9,369 — 176 (524 ) 9,021 Commercial business 2,845 — 11 138 2,994 20,307 — 187 (257 ) 20,237 Total allowance for credit losses $ 34,001 $ (398 ) $ 380 $ 1,250 $ 35,233 Nine Months Ended September 30, 2017 (in thousands) Beginning Charge-offs Recoveries (Reversal of) Provision Ending Consumer loans Single family $ 8,196 $ (2 ) $ 1,018 $ (131 ) $ 9,081 Home equity and other 6,153 (583 ) 781 642 6,993 14,349 (585 ) 1,799 511 16,074 Commercial loans Commercial real estate 6,680 — — 821 7,501 Multifamily 3,086 — — 970 4,056 Construction/land development 8,553 — 606 (1,212 ) 7,947 Commercial business 2,596 (217 ) 578 (340 ) 2,617 20,915 (217 ) 1,184 239 22,121 Total allowance for credit losses $ 35,264 $ (802 ) $ 2,983 $ 750 $ 38,195 Nine Months Ended September 30, 2016 (in thousands) Beginning Charge-offs Recoveries (Reversal of) Provision Ending Consumer loans Single family $ 8,942 $ (74 ) $ 87 $ 293 $ 9,248 Home equity and other 4,620 (654 ) 530 1,252 5,748 13,562 (728 ) 617 1,545 14,996 Commercial loans Commercial real estate 4,847 — — 1,278 6,125 Multifamily 1,194 — — 903 2,097 Construction/land development 9,271 (42 ) 959 (1,167 ) 9,021 Commercial business 1,785 (26 ) 44 1,191 2,994 17,097 (68 ) 1,003 2,205 20,237 Total allowance for credit losses $ 30,659 $ (796 ) $ 1,620 $ 3,750 $ 35,233 The following table disaggregates our allowance for credit losses and recorded investment in loans by impairment methodology. At September 30, 2017 (in thousands) Allowance: collectively evaluated for impairment Allowance: individually evaluated for impairment Total Loans: collectively evaluated for impairment Loans: individually evaluated for impairment Total Consumer loans Single family $ 8,727 $ 354 $ 9,081 $ 1,184,497 $ 79,441 $ 1,263,938 Home equity and other 6,946 47 6,993 435,454 1,301 436,755 15,673 401 16,074 1,619,951 80,742 1,700,693 Commercial loans Commercial real estate 7,501 — 7,501 983,859 2,562 986,421 Multifamily 4,056 — 4,056 746,349 822 747,171 Construction/land development 7,947 — 7,947 652,125 1,007 653,132 Commercial business 2,215 402 2,617 243,593 2,266 245,859 21,719 402 22,121 2,625,926 6,657 2,632,583 Total loans evaluated for impairment 37,392 803 38,195 4,245,877 87,399 4,333,276 Loans held for investment carried at fair value $ 5,416 $ 130 5,546 (1) Total loans held for investment $ 37,392 $ 803 $ 38,195 $ 4,251,293 $ 87,529 $ 4,338,822 (1) Comprised of single family loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations. At December 31, 2016 (in thousands) Allowance: collectively evaluated for impairment Allowance: individually evaluated for impairment Total Loans: collectively evaluated for impairment Loans: individually evaluated for impairment Total Consumer loans Single family $ 7,871 $ 325 $ 8,196 $ 985,219 $ 80,676 $ 1,065,895 Home equity and other 6,104 49 6,153 358,350 1,463 359,813 13,975 374 14,349 1,343,569 82,139 1,425,708 Commercial loans Commercial real estate 6,680 — 6,680 869,225 2,338 871,563 Multifamily 3,086 — 3,086 673,374 845 674,219 Construction/land development 8,553 — 8,553 634,427 1,893 636,320 Commercial business 2,591 5 2,596 220,360 3,293 223,653 20,910 5 20,915 2,397,386 8,369 2,405,755 Total loans evaluated for impairment 34,885 379 35,264 3,740,955 90,508 3,831,463 Loans held for investment carried at fair value 17,988 (1) Total loans held for investment $ 34,885 $ 379 $ 35,264 $ 3,740,955 $ 90,508 $ 3,849,451 (1) Comprised of single family loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations. Impaired Loans The following tables present impaired loans by loan portfolio segment and loan class. At September 30, 2017 (in thousands) Recorded investment (1) Unpaid principal balance (2) Related allowance With no related allowance recorded: Consumer loans Single family $ 75,396 $ 77,012 $ — Home equity and other 787 813 — 76,183 77,825 — Commercial loans Commercial real estate 2,562 3,090 — Multifamily 822 842 — Construction/land development 1,007 1,549 — Commercial business 440 1,456 — 4,831 6,937 — $ 81,014 $ 84,762 $ — With an allowance recorded: Consumer loans Single family $ 4,175 $ 4,267 $ 354 Home equity and other 514 514 47 4,689 4,781 401 Commercial loans Commercial business 1,826 1,874 402 $ 6,515 $ 6,655 $ 803 Total: Consumer loans Single family (3) $ 79,571 $ 81,279 $ 354 Home equity and other 1,301 1,327 47 80,872 82,606 401 Commercial loans Commercial real estate 2,562 3,090 — Multifamily 822 842 — Construction/land development 1,007 1,549 — Commercial business 2,266 3,330 402 6,657 8,811 402 Total impaired loans $ 87,529 $ 91,417 $ 803 (1) Includes partial charge-offs and nonaccrual interest paid and purchase discounts and premiums. (2) Unpaid principal balance does not include partial charge-offs, purchase discounts and premiums or nonaccrual interest paid. Related allowance is calculated on net book balances not unpaid principal balances. (3) Includes $73.7 million in single family performing trouble debt restructurings "TDRs". At December 31, 2016 (in thousands) Recorded investment (1) Unpaid principal balance (2) Related allowance With no related allowance recorded: Consumer loans Single family $ 77,756 $ 80,573 $ — Home equity and other 946 977 — 78,702 81,550 — Commercial loans Commercial real estate 2,338 2,846 — Multifamily 845 851 — Construction/land development 1,893 2,819 — Commercial business 2,945 4,365 — 8,021 10,881 — $ 86,723 $ 92,431 $ — With an allowance recorded: Consumer loans Single family $ 2,920 $ 3,011 $ 325 Home equity and other 517 517 49 3,437 3,528 374 Commercial loans Commercial business 348 347 5 348 347 5 $ 3,785 $ 3,875 $ 379 Total: Consumer loans Single family (3) $ 80,676 $ 83,584 $ 325 Home equity and other 1,463 1,494 49 82,139 85,078 374 Commercial loans Commercial real estate 2,338 2,846 — Multifamily 845 851 — Construction/land development 1,893 2,819 — Commercial business 3,293 4,712 5 8,369 11,228 5 Total impaired loans $ 90,508 $ 96,306 $ 379 (1) Includes partial charge-offs and nonaccrual interest paid. (2) Unpaid principal balance does not include partial charge-offs, purchase discounts and premiums or nonaccrual interest paid. Related allowance is calculated on net book balances not unpaid principal balances. (3) Includes $73.1 million in single family performing TDRs. The following tables provide the average recorded investment and interest income recognized on impaired loans by portfolio segment and class. (in thousands) Three Months Ended September 30, 2017 Three Months Ended September 30, 2016 Consumer loans Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Single family $ 81,770 $ 738 $ 85,138 $ 727 Home equity and other 1,501 19 1,371 17 83,271 757 86,509 744 Commercial loans Commercial real estate 2,960 33 3,431 4 Multifamily 825 6 621 6 Construction/land development 1,015 21 2,333 23 Commercial business 2,045 30 4,068 15 6,845 90 10,453 48 $ 90,116 $ 847 $ 96,962 $ 792 (in thousands) Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 Consumer loans Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Single family $ 81,889 $ 2,278 $ 83,271 $ 2,171 Home equity and other 1,475 62 1,479 50 83,364 2,340 84,750 2,221 Commercial loans Commercial real estate 3,446 129 3,439 12 Multifamily 833 18 1,877 41 Construction/land development 1,277 68 3,023 67 Commercial business 2,579 113 3,902 56 8,135 328 12,241 176 $ 91,499 $ 2,668 $ 96,991 $ 2,397 Credit Quality Indicators Management regularly reviews loans in the portfolio to assess credit quality indicators and to determine appropriate loan classification and grading in accordance with applicable bank regulations. The Company's risk rating methodology assigns risk ratings ranging from 1 to 10, where a higher rating represents higher risk. The Company differentiates its lending portfolios into homogeneous loans and non-homogeneous loans. The 10 risk rating categories can be generally described by the following groupings for non-homogeneous loans: Pass. We have five pass risk ratings which represent a level of credit quality that ranges from no well-defined deficiency or weakness to some noted weakness, however the risk of default on any loan classified as pass is expected to be remote. The five pass risk ratings are described below: Minimal Risk . A minimal risk loan, risk rated 1-Exceptional, is to a borrower of the highest quality. The borrower has an unquestioned ability to produce consistent profits and service all obligations and can absorb severe market disturbances with little or no difficulty. Low Risk. A low risk loan, risk rated 2-Superior, is similar in characteristics to a minimal risk loan. Balance sheet and operations are slightly more prone to fluctuations within the business cycle; however, debt capacity and debt service coverage remains strong. The borrower will have a strong demonstrated ability to produce profits and absorb market disturbances. Modest Risk. A modest risk loan, risk rated 3-Excellent, is a desirable loan with excellent sources of repayment and no currently identifiable risk associated with collection. The borrower exhibits a very strong capacity to repay the loan in accordance with the repayment agreement. The borrower may be susceptible to economic cycles, but will have cash reserves to weather these cycles. Average Risk. An average risk loan, risk rated 4-Good, is an attractive loan with sound sources of repayment and no material collection or repayment weakness evident. The borrower has an acceptable capacity to pay in accordance with the agreement. The borrower is susceptible to economic cycles and more efficient competition, but should have modest reserves sufficient to survive all but the most severe downturns or major setbacks. Acceptable Risk. An acceptable risk loan, risk rated 5-Acceptable, is a loan with lower than average, but still acceptable credit risk. These borrowers may have higher leverage, less certain but viable repayment sources, have limited financial reserves and may possess weaknesses that can be adequately mitigated through collateral, structural or credit enhancement. The borrower is susceptible to economic cycles and is less resilient to negative market forces or financial events. Reserves may be insufficient to survive a modest downturn. Watch. A watch loan, risk rated 6-Watch, is still pass-rated, but represents the lowest level of acceptable risk due to an emerging risk element or declining performance trend. Watch ratings are expected to be temporary, with issues resolved or manifested to the extent that a higher or lower rating would be appropriate. The borrower should have a plausible plan, with reasonable certainty of success, to correct the problems in a short period of time. Borrowers rated watch are characterized by elements of uncertainty, such as: • The borrower may be experiencing declining operating trends, strained cash flows or less-than anticipated performance. Cash flow should still be adequate to cover debt service, and the negative trends should be identified as being of a short-term or temporary nature. • The borrower may have experienced a minor, unexpected covenant violation. • Companies who may be experiencing tight working capital or have a cash cushion deficiency. • A loan may also be a watch if financial information is late, there is a documentation deficiency, the borrower has experienced unexpected management turnover, or if they face industry issues that, when combined with performance factors create uncertainty in their future ability to perform. • Delinquent payments, increasing and material overdraft activity, request for bulge and/or out- of-formula advances may be an indicator of inadequate working capital and may suggest a lower rating. • Failure of the intended repayment source to materialize as expected, or renewal of a loan (other than cash/marketable security secured or lines of credit) without reduction are possible indicators of a watch or worse risk rating. Special Mention. A special mention loan, risk rated 7-Special Mention, has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loans or the institutions credit position at some future date. They contain unfavorable characteristics and are generally undesirable. Loans in this category are currently protected but are potentially weak and constitute an undue and unwarranted credit risk, but not to the point of a substandard classification. A special mention loan has potential weaknesses, which if not checked or corrected, weaken the loan or inadequately protect the Company’s position at some future date. Such weaknesses include: • Performance is poor or significantly less than expected. There may be a temporary debt-servicing deficiency or inadequate working capital as evidenced by a cash cushion deficiency, but not to the extent that repayment is compromised. Material violation of financial covenants is common. • Loans with unresolved material issues that significantly cloud the debt service outlook, even though a debt servicing deficiency does not currently exist. • Modest underperformance or deviation from plan for real estate loans where absorption of rental/sales units is necessary to properly service the debt as structured. Depth of support for interest carry provided by owner/guarantors may mitigate and provide for improved rating. • This rating may be assigned when a loan officer is unable to supervise the credit properly, an inadequate loan agreement, an inability to control collateral, failure to obtain proper documentation, or any other deviation from prudent lending practices. • Unlike a substandard credit, there should be a reasonable expectation that these temporary issues will be corrected within the normal course of business, rather than liquidation of assets, and in a reasonable period of time. Substandard. A substandard loan, risk rated 8-Substandard, is inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the loan. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Loss potential, while existing in the aggregate amount of substandard loans, does not have to exist in individual loans classified substandard. Loans are classified as substandard when they have unsatisfactory characteristics causing unacceptable levels of risk. A substandard loan normally has one or more well-defined weaknesses that could jeopardize repayment of the loan. The likely need to liquidate assets to correct the problem, rather than repayment from successful operations is the key distinction between special mention and substandard. The following are examples of well-defined weaknesses: • Cash flow deficiencies or trends are of a magnitude to jeopardize current and future payments with no immediate relief. A loss is not presently expected, however the outlook is sufficiently uncertain to preclude ruling out the possibility. • The borrower has been unable to adjust to prolonged and unfavorable industry or economic trends. • Material underperformance or deviation from plan for real estate loans where absorption of rental/sales units is necessary to properly service the debt and risk is not mitigated by willingness and capacity of owner/guarantor to support interest payments. • Management character or honesty has become suspect. This includes instances where the borrower has become uncooperative. • Due to unprofitable or unsuccessful business operations, some form of restructuring of the business, including liquidation of assets, has become the primary source of loan repayment. Cash flow has deteriorated, or been diverted, to the point that sale of collateral is now the Company’s primary source of repayment (unless this was the original source of repayment). If the collateral is under the Company’s control and is cash or other liquid, highly marketable securities and properly margined, then a more appropriate rating might be special mention or watch. • The borrower is involved in bankruptcy proceedings where collateral liquidation values are expected to fully protect the Company against loss. • There is material, uncorrectable faulty documentation or materially suspect financial information. Doubtful. Loans classified as doubtful, risk rated 9-Doubtful, have all the weaknesses inherent in one classified 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 possibility of loss is extremely high, but because of certain important and reasonably specific pending factors, which may work towards strengthening of the loan, classification as a loss (and immediate charge-off) is deferred until more exact status may be determined. Pending factors include proposed merger, acquisition, liquidation procedures, capital injection, and perfection of liens on additional collateral and refinancing plans. In certain circumstances, a doubtful rating will be temporary, while the Company is awaiting an updated collateral valuation. In these cases, once the collateral is valued and appropriate margin applied, the remaining un-collateralized portion will be charged-off. The remaining balance, properly margined, may then be upgraded to substandard, however must remain on non-accrual. Loss. Loans classified as loss, risk rated 10-Loss, are considered un-collectible and of such little value that the continuance as an active Company asset is not warranted. This rating does not mean that the loan has no recovery or salvage value, but rather that the loan should be charged-off now, even though partial or full recovery may be possible in the future. Impaired. Loans are classified as impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal and interest when due, in accordance with the terms of the original loan agreement, without unreasonable delay. This generally includes all loans classified as nonaccrual and troubled debt restructurings. Impaired loans are risk rated for internal and regulatory rating purposes, but presented separately for clarification. Homogeneous loans maintain their original risk rating until they are greater than 30 days past due, and risk rating reclassification is based primarily on the past due status of the loan. The risk rating categories can be generally described by the following groupings for commercial and commercial real estate homogeneous loans: Watch. A homogeneous watch loan, risk rated 6, is 30-59 days past due from the required payment date at month-end. Special Mention. A homogeneous special mention loan, risk rated 7, is 60-89 days past due from the required payment date at month-end. S ubstandard. A homogeneous substandard loan, risk rated 8, is 90-179 days past due from the required payment date at month-end. Loss. A homogeneous loss loan, risk rated 10, is 180 days and more past due from the required payment date. These loans are generally charged-off in the month in which the 180 day time period elapses. The risk rating categories can be generally described by the following groupings for residential and home equity and other homogeneous loans: Watch. A homogeneous retail watch loan, risk rated 6, is 60-89 days past due from the required payment date at month-end. Substandard. A homogeneous retail substandard loan, risk rated 8, is 90-179 days past due from the required payment date at month-end. Loss. A homogeneous retail loss loan, risk rated 10, becomes past due 180 cumulative days from the contractual due date. These loans are generally charged-off in the month in which the 180 day period elapses. Residential and home equity loans modified in a troubled debt restructure are not considered homogeneous. The risk rating classification for such loans are based on the non-homogeneous definitions noted above. The following tables summarize designated loan grades by loan portfolio segment and loan class. At September 30, 2017 (in thousands) Pass Watch Special mention Substandard Total Consumer loans Single family $ 1,241,538 (1) $ 2,853 $ 13,510 $ 11,583 $ 1,269,484 Home equity and other 434,377 248 660 1,470 436,755 1,675,915 3,101 14,170 13,053 1,706,239 Commercial loans Commercial real estate 945,951 29,487 7,868 3,115 986,421 Multifamily 734,472 10,501 1,884 314 747,171 Construction/land development 645,968 5,731 1,433 — 653,132 Commercial business 198,687 42,290 1,587 3,295 245,859 2,525,078 88,009 12,772 6,724 2,632,583 $ 4,200,993 $ 91,110 $ 26,942 $ 19,777 $ 4,338,822 (1) Includes $5.5 million of loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations. At December 31, 2016 (in thousands) Pass Watch Special mention Substandard Total Consumer loans Single family $ 1,051,463 (1) $ 4,348 $ 15,172 $ 12,839 $ 1,083,822 Home equity and other 357,191 597 514 1,572 359,874 1,408,654 4,945 15,686 14,411 1,443,696 Commercial loans Commercial real estate 809,996 52,519 7,165 1,883 871,563 Multifamily 660,234 13,140 508 337 674,219 Construction/land development 615,675 16,074 3,083 1,488 636,320 Commercial business 171,883 42,767 3,385 5,618 223,653 2,257,788 124,500 14,141 9,326 2,405,755 $ 3,666,442 $ 129,445 $ 29,827 $ 23,737 $ 3,849,451 (1) Includes $18.0 million of loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations. As of September 30, 2017 and December 31, 2016 , none of the Company's loans were rated Doubtful or Loss. For a detailed discussion on credit quality, see Note 5, Loans and Credit Quality , within our 2016 Annual Report on Form 10-K. Nonaccrual and Past Due Loans Loans are placed on nonaccrual status when the full and timely collection of principal and interest is doubtful, generally when the loan becomes 90 days or more past due for principal or interest payment or if part of the principal balance has been charged off. Loans whose repayments are insured by the FHA or guaranteed by the VA are generally maintained on accrual status even if 90 days or more past due. The following table presents an aging analysis of past due loans by loan portfolio segment and loan class. At September 30, 2017 (in thousands) 30-59 days past due 60-89 days past due 90 days or more past due Total past due Current Total loans 90 days or more past due and accruing Consumer loans Single family $ 8,851 $ 4,615 $ 48,647 $ 62,113 $ 1,207,371 (1) $ 1,269,484 $ 37,185 (2) Home equity and other 674 121 1,470 2,265 434,490 436,755 — 9,525 4,736 50,117 64,378 1,641,861 1,706,239 37,185 Commercial loans Commercial real estate 913 — 724 1,637 984,784 986,421 — Multifamily — — 314 314 746,857 747,171 — Construction/land development 992 — — 992 652,140 653,132 — Commercial business 897 — 1,153 2,050 243,809 245,859 — 2,802 — 2,191 4,993 2,627,590 2,632,583 — $ 12,327 $ 4,736 $ 52,308 $ 69,371 $ 4,269,451 $ 4,338,822 $ 37,185 At December 31, 2016 (in thousands) 30-59 days 60-89 days 90 days or Total past Current Total 90 days or Consumer loans Single family $ 4,310 $ 5,459 $ 53,563 $ 63,332 $ 1,020,490 (1) $ 1,083,822 $ 40,846 (2) Home equity and other 251 442 1,571 2,264 357,610 359,874 — 4,561 5,901 55,134 65,596 1,378,100 1,443,696 40,846 Commercial loans Commercial real estate 71 205 2,127 2,403 869,160 871,563 — Multifamily — — 337 337 673,882 674,219 — Construction/land development — — 1,376 1,376 634,944 636,320 — Commercial business 202 — 2,414 2,616 221,037 223,653 — 273 205 6,254 6,732 2,399,023 2,405,755 — $ 4,834 $ 6,106 $ 61,388 $ 72,328 $ 3,777,123 $ 3,849,451 $ 40,846 (1) Includes $5.5 million and $18.0 million of loans at September 30, 2017 and December 31, 2016 , respectively, where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations. (2) FHA-insured and VA-guaranteed single family loans that are 90 days or more past due are maintained on accrual status if they are determined to have little to no risk of loss and are a subset of the 90 days or more past due balance. The following tables present performing and nonperforming loan balances by loan portfolio segment and loan class. At September 30, 2017 (in thousands) Accrual Nonaccrual Total Consumer loans Single family $ 1,258,022 (1) $ 11,462 $ 1,269,484 Home equity and other 435,285 1,470 436,755 1,693,307 12,932 1,706,239 Commercial loans Commercial real estate 985,697 724 986,421 Multifamily 746,857 314 747,171 Construction/land development 653,132 — 653,132 Commercial business 244,706 1,153 245,859 2,630,392 2,191 2,632,583 $ 4,323,699 $ 15,123 $ 4,338,822 At December 31, 2016 (in thousands) Accrual Nonaccrual Total Consumer loans Single family $ 1,071,105 (1) $ 12,717 $ 1,083,822 Home equity and other 358,303 1,571 359,874 1,429,408 14,288 1,443,696 Commercial loans Commercial real estate 869,436 2,127 871,563 Multifamily 673,882 337 674,219 Construction/land development 634,944 1,376 636,320 Commercial business 221,239 2,414 223,653 2,399,501 6,254 2,405,755 $ 3,828,909 $ 20,542 $ 3,849,451 (1) Includes $5.5 million and $18.0 million of loans at September 30, 2017 and December 31, 2016 , where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations. The following tables present information about TDR activity during the periods presented. Three Months Ended September 30, 2017 (dollars in thousands) Concession type Number of loan Recorded Related charge- Consumer loans Single family Interest rate reduction 9 $ 1,914 $ — Payment restructure 29 5,911 — Total consumer Interest rate reduction 9 1,914 — Payment restructure 29 5,911 — 38 7,825 — Total loans Interest rate reduction 9 1,914 — Payment restructure 29 5,911 — 38 $ 7,825 $ — Three Months Ended September 30, 2016 (dollars in tho |