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Loans Held for Investment (Tables)

3 Months Ended

Mar. 31, 2020

Schedule of components of loans held for investment

The following table presents the composition of the loan portfolio for the period indicated:



	March 31,			December 31,
	2020			2019
	(Dollars in thousands)
Investor loans secured by real estate
Commercial real estate (“CRE”) non-owner-occupied	$	2,040,198		$	2,070,141
Multifamily	1,625,682			1,575,726
Construction and land	377,525			438,786
SBA secured by real estate ⁽¹⁾	61,665			68,431
Total investor loans secured by real estate	4,105,070			4,153,084
Business loans secured by real estate ⁽²⁾
CRE owner-occupied	1,887,632			1,846,554
Franchise real estate secured	371,428			353,240
SBA secured by real estate ⁽³⁾	83,640			88,381
Total business loans secured by real estate	2,342,700			2,288,175
Commercial loans ⁽⁴⁾
Commercial and industrial	1,458,969			1,393,270
Franchise non-real estate secured	547,793			564,357
SBA non-real estate secured	16,265			17,426
Total commercial loans	2,023,027			1,975,053
Retail loans
Single family residential ⁽⁵⁾	237,180			255,024
Consumer	46,892			50,975
Total retail loans	284,072			305,999
Gross loans held for investment ⁽⁶⁾	8,754,869			8,722,311
Allowance for credit losses for loans held for investment ⁽⁷⁾	(115,422		)	(35,698		)
Loans held for investment, net	$	8,639,447		$	8,686,613

Loans held for sale, at lower of cost or fair value	$	111		$	1,672

______________________________

⁽¹⁾ SBA loans that are collateralized by hotel/motel real property.

⁽²⁾ Loans to businesses that are collateralized by real estate where the operating cash flow of the business is the primary source of repayment.

⁽³⁾ SBA loans that are collateralized by real property other than hotel/motel real property.

⁽⁴⁾ Loans to businesses where the operating cash flow of the business is the primary source of repayment.

⁽⁵⁾Single family residential includes home equity lines of credit, as well as second trust deeds.

⁽⁶⁾ Includes unaccreted fair value net purchase discounts of $35.9 million and $40.7 million as of March 31, 2020 and December 31, 2019, respectively.

⁽⁷⁾The ACL as of December 31, 2019 was the allowance for loan and lease losses (“ALLL”) accounted for under ASC 450 and ASC 310, which is reflective of probable incurred losses as of the balance sheet date. The ACL at March 31, 2020 is accounted for under ASC 326, which is reflective of estimated expected lifetime credit losses.

Summary of loan portfolio by the Company's internal risk grading system

The following table stratifies the loans held for investment portfolio by the Company’s internal risk grading, and by year of origination, as of March 31, 2020:



	Term Loans by Vintage
	2020		2019		2018		2017		2016		Prior		Revolving		Revolving Converted to Term During the Period		Total
March 31, 2020	(Dollars in thousands)
Investor loans secured by real estate
CRE non-owner-occupied
Pass	$	104,083	$	382,006	$	381,751	$	302,979	$	207,185	$	644,656	$	11,085	$	—	$	2,033,745
Special mention	—		—		—		—		—		4,904		—		—		4,904
Substandard	—		—		318		—		—		672		559		—		1,549
Doubtful and loss	—		—		—		—		—		—		—				—
Multifamily
Pass	105,208		308,369		315,462		241,938		291,126		362,377		987		—		1,625,467
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		215		—		—		215
Doubtful and loss	—		—		—		—		—		—		—				—
Construction and land
Pass	2,250		118,550		139,340		106,230		—		8,962		391		—		375,723
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		1,802		—		$	—	—		—		1,802
Doubtful and loss	—		—		—		—		—		—		—				—
SBA secured by real estate ⁽¹⁾
Pass	494		10,726		12,324		16,189		7,160		11,032		—		—		57,925
Special mention	—		—		—		699		—		271		—		—		970
Substandard	—		—		1,494		—		392		884		—		—		2,770
Doubtful and loss	—		—		—		—		—		—		—				—
Total investor loans secured by real estate	$	212,035	$	819,651	$	850,689	$	669,837	$	505,863	$	1,033,973	$	13,022	$	—	$	4,105,070
Business loans secured by real estate ⁽²⁾
CRE owner-occupied
Pass	$	114,657	$	315,128	$	304,390	$	311,399	$	268,077	$	540,945	$	5,820	$	—	$	1,860,416
Special mention	—		—		—		8,251		—		6,875		—		—		15,126
Substandard	—		—		3,635		727		2,180		5,298		250		—		12,090
Doubtful and loss	—		—		—		—		—		—		—				—
Franchise real estate secured
Pass	19,326		87,574		76,587		109,203		31,652		46,184		—		—		370,526
Special mention	—		—		—		—		—		902		—		—		902
Substandard	—		—		—		—		—		—		—		—		—
Doubtful and loss	—		—		—		—		—		—		—				—
SBA secured by real estate ⁽³⁾
Pass	2,109		7,723		14,253		17,388		11,027		25,896		364		—		78,760
Special mention	—		—		—		1,015		351		466		—		—		1,832
Substandard	—		—		—		1,033		413		1,602		—		—		3,048
Doubtful and loss	—		—		—		—		—		—		—		—		—
Total loans secured by business real estate	$	136,092	$	410,425	$	398,865	$	449,016	$	313,700	$	628,168	$	6,434	$	—	$	2,342,700



	Term Loans by Vintage
	2020		2019		2018		2017		2016		Prior		Revolving		Revolving Converted to Term During the Period		Total
March 31, 2020	(Dollars in thousands)
Commercial Loans ⁽⁴⁾
Commercial and industrial
Pass	$	31,625	$	125,432	$	102,018	$	103,546	$	37,006	$	115,500	$	899,341	$	1,574	$	1,416,042
Special mention	—		79		352		2,504		137		1,195		18,254		1,250		23,771
Substandard	—		524		2,769		467		1,915		2,443		11,038		—		19,156
Doubtful and loss	—		—		—		—		—		—		—				—
Franchise non-real estate secured
Pass	10,261		212,785		125,954		79,395		52,726		47,724		2,062		—		530,907
Special mention	—		—		—		3,914		—		2,861		—		—		6,775
Substandard	—		—		—		9,137		—		974		—		—		10,111
Doubtful and loss	—		—		—		—		—		—		—				—
SBA non-real estate secured
Pass	265		2,383		1,798		2,258		695		3,737		1,572		285		12,993
Special mention	—		—		—		—		293		173		—		—		466
Substandard	—		88		138		261		—		1,532		787		—		2,806
Doubtful and loss	—		—		—		—		—		—		—				—
Total commercial loans	$	42,151	$	341,291	$	233,029	$	201,482	$	92,772	$	176,139	$	933,054	$	3,109	$	2,023,027
Retail Loans
Single family residential ⁽⁵⁾
Pass	$	3,466	$	11,064	$	17,759	$	16,931	$	38,556	$	108,224	$	39,981	—		$	235,981
Special mention	—		—		—		—		—		649		—		—		649
Substandard	—		—		—		—		—		192		358		—		550
Doubtful and loss	—		—		—		—		—		—		—				—
Consumer loans
Pass	89		214		874		38,045		29		3,311		4,282		—		46,844
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		48		—		—		48
Doubtful and loss	—		—		—		—		—		—		—				—
Total retail loans	$	3,555	$	11,278	$	18,633	$	54,976	$	38,585	$	112,424	$	44,621	$	—	$	284,072
Totals gross loans	$	393,833	$	1,582,645	$	1,501,216	$	1,375,311	$	950,920	$	1,950,704	$	997,131	$	3,109	$	8,754,869

______________________________

⁽¹⁾ SBA loans that are collateralized by hotel/motel real property.

⁽²⁾ Loans to businesses that are collateralized by real estate where the operating cash flow of the business is the primary source of repayment.

⁽³⁾ SBA loans that are collateralized by real property other than hotel/motel real property.

⁽⁴⁾ Loans to businesses where the operating cash flow of the business is the primary source of repayment.

⁽⁵⁾Single family residential includes home equity lines of credit, as well as second trust deeds.

The following tables stratify the loan portfolio by the Company’s internal risk grading as of December 31, 2019:



	Credit Risk Grades
	Pass		Special Mention		Substandard		Total Gross Loans
December 31, 2019	(Dollars in thousands)
Investor loans secured by real estate
CRE non-owner-occupied	$	2,067,875	$	1,178	$	1,088	$	2,070,141
Multifamily	1,575,510		—		216		1,575,726
Construction and land	438,769		—		17		438,786
SBA secured by real estate ⁽¹⁾	65,835		973		1,623		68,431
Total investor loans secured by real estate	4,147,989		2,151		2,944		4,153,084
Business loans secured by real estate ⁽²⁾
CRE owner-occupied	1,831,853		11,167		3,534		1,846,554
Franchise real estate secured	352,319		921		—		353,240
SBA secured by real estate ⁽³⁾	83,106		1,842		3,433		88,381
Total business loans secured by real estate	2,267,278		13,930		6,967		2,288,175
Commercial loans ⁽⁴⁾
Commercial and industrial	1,359,662		13,226		20,382		1,393,270
Franchise non-real estate secured	546,594		6,930		10,833		564,357
SBA not secured by real estate	13,933		485		3,008		17,426
Total commercial loans	1,920,189		20,641		34,223		1,975,053
Retail loans
Single family residential ⁽⁵⁾	254,463		—		561		255,024
Consumer loans	50,921		—		54		50,975
Total retail loans	305,384		—		615		305,999
Total gross loans	$	8,640,840	$	36,722	$	44,749	$	8,722,311

______________________________

⁽¹⁾ SBA loans that are collateralized by hotel/motel real property.

⁽²⁾ Loans to businesses that are collateralized by real estate where the operating cash flow of the business is the primary source of repayment.

⁽³⁾ SBA loans that are collateralized by real property other than hotel/motel real property.

⁽⁴⁾ Loans to businesses where the operating cash flow of the business is the primary source of repayment.

⁽⁵⁾Single family residential includes home equity lines of credit, as well as second trust deeds.

The following table summarizes the amortized cost of loans in these segments by current estimated LTV and by year of origination as of the date indicated:



	Term Loans by Vintage
	2020		2019		2018		2017		2016		Prior		Revolving		Revolving Converted to Term During the Period		Total
March 31, 2020	(Dollars in thousands)
Investor loans secured by real estate
CRE non-owner-occupied
55% and below	$	56,085	$	174,693	$	137,386	$	179,286	$	144,084	$	515,589	$	11,085	—		$	1,218,208
>55-65%	27,173		114,711		104,810		97,883		52,649		104,802		559		—		502,587
>65-75%	20,825		92,602		136,934		23,455		10,238		29,568		—		—		313,622
Greater than 75%	—		—		2,939		2,355		214		273		—		—		5,781
Multifamily
55% and below	26,605		108,109		133,038		93,938		72,385		159,449		511		—		594,035
>55-65%	32,070		140,824		121,292		83,532		85,911		160,662		—		—		624,291
>65-75%	46,533		49,354		40,497		62,560		132,830		37,319		476		—		369,569
Greater than 75%	—		10,082		20,635		1,908		—		5,162		—		—		37,787
Construction and land
55% and below	2,250		114,230		116,970		32,535		—		7,581		391		—		273,957
>55-65%	—		4,320		19,439		57,988		—		—		—		—		81,747
>65-75%	—		—		1,887		17,509		—		—		—		—		19,396
Greater than 75%	—		—		1,044		—		—		1,381		—		—		2,425
SBA secured by real estate ⁽¹⁾
55% and below	—		1,150		658		844		725		439		—		—		3,816
>55-65%	—		3,194		710		3,869		980		4,079		—		—		12,832
>65-75%	494		3,730		8,821		6,523		4,371		3,601		—		—		27,540
Greater than 75%	—		2,652		3,629		5,652		1,476		4,068		—		—		17,477
Total investor loans secured by real estate	$	212,035	$	819,651	$	850,689	$	669,837	$	505,863	$	1,033,973	$	13,022	$	—	$	4,105,070
Business loan secured by real estate ⁽²⁾
CRE owner-occupied
55% and below	$	44,737	$	113,567	$	154,056	$	194,126	$	143,274	$	361,762	$	4,951	—		$	1,016,473
>55-65%	14,963		91,000		85,230		61,426		75,933		87,639		—		—		416,191
>65-75%	15,560		89,702		44,579		59,813		47,717		60,839		1,119		—		319,329
Greater than 75%	39,397		20,859		24,160		5,012		3,333		42,878		—		—		135,639
Franchise real estate secured
55% and below	9,342		18,866		14,141		16,765		11,413		21,859		—		—		92,386
>55-65%	—		11,447		11,696		24,812		7,010		6,891		—		—		61,856
>65-75%	—		44,892		27,393		10,261		12,102		17,098		—		—		111,746
Greater than 75%	9,984		12,369		23,357		57,365		1,127		1,238		—		—		105,440
SBA secured by real estate ⁽³⁾
55% and below	2,109		7,723		14,253		19,436		11,791		27,964		364		—		83,640
>55-65%	—		—		—		—		—		—		—		—		—
>65-75%	—		—		—		—		—		—		—		—		—
Greater than 75%	—		—		—		—		—		—		—		—		—
Total business loans secured by real estate	$	136,092	$	410,425	$	398,865	$	449,016	$	313,700	$	628,168	$	6,434	$	—	$	2,342,700

______________________________

⁽¹⁾ SBA loans that are collateralized by hotel/motel real property.

⁽²⁾ Loans to businesses that are collateralized by real estate where the operating cash flow of the business is the primary source of repayment.

⁽³⁾ SBA loans that are collateralized by real property other than hotel/motel real property.

The following table presents FICO bands for the retail segment of the loan portfolio as of the date indicated:



	Term Loans by Vintage
	2020		2019		2018		2017		2016		Prior		Revolving		Revolving Converted to Term During the Period		Total
March 31, 2020	(Dollars in thousands)
Retail Loans
Single family residential⁽¹⁾
Greater than 740	$	3,466	$	9,868	$	13,973	$	11,586	$	32,709	$	90,860	$	29,710	—		$	192,172
>680 - 740	—		1,196		3,786		4,824		2,678		10,893		9,273		—		32,650
>580 - 680	—		—		—		521		3,169		6,549		1,319		—		11,558
Less than 580	—		—		—		—		—		763		37		—		800
Consumer loans
Greater than 740	89		126		866		55		25		2,682		2,366		—		6,209
>680 - 740	—		64		8		37,990		—		501		1,765		—		40,328
>580 - 680	—		24		—		—		4		155		110		—		293
Less than 580	—		—		—		—		—		21		41		—		62
Total retail loans	$	3,555	$	11,278	$	18,633	$	54,976	$	38,585	$	112,424	$	44,621	$	—	$	284,072

______________________________

⁽¹⁾Single family residential includes home equity lines of credit, as well as second trust deeds.

The following table presents PD bands for commercial real estate and commercial loan segments of the loan portfolio as of the date indicated:



	Commercial Real Estate Term Loans by Vintage
	2020		2019		2018		2017		2016		Prior		Revolving		Revolving Converted to Term During the Period		Total
March 31, 2020	(Dollars in thousands)
Investor loans secured by real estate
CRE non-owner-occupied
0% - 5.00%	$	104,083	$	373,078	$	365,350	$	282,641	$	200,867	$	629,141	$	11,644	$	—	$	1,966,804
>5.00% - 10.00%	—		8,928		16,401		19,982		6,318		5,364		—		—		56,993
Greater than 10%	—		—		318		356		—		15,727		—		—		16,401
Multifamily
0% - 5.00%	99,379		268,267		308,116		241,432		291,126		356,870		987		—		1,566,177
>5.00% - 10.00%	5,829		40,102		3,522		506		—		4,263		—		—		54,222
Greater than 10%	—		—		3,824		—		—		1,459		—		—		5,283
Construction and Land
0% - 5.00%	2,250		62,553		14,444		12,823		—		7,408		391		—		99,869
>5.00% - 10.00%	—		26,376		21,927		40,704		—		298		—		—		89,305
Greater than 10%	—		29,621		102,969		54,505		—		1,256		—		—		188,351
SBA secured by real estate ⁽¹⁾
0% - 5.00%	494		10,726		12,158		16,888		7,160		11,664		—		—		59,090
>5.00% - 10.00%	—		—		1,660		—		—		523		—		—		2,183
Greater than 10%	—		—		—		—		392		—		—		—		392
Total investor loans secured by real estate	$	212,035	$	819,651	$	850,689	$	669,837	$	505,863	$	1,033,973	$	13,022	$	—	$	4,105,070
Business loans secured by real estate ⁽²⁾
CRE owner-occupied
0% - 5.00%	$	114,657	$	296,223	$	274,727	$	303,164	$	244,460	$	515,875	$	5,573	$	—	$	1,754,679
>5.00% - 10.00%	—		18,905		29,663		16,248		23,617		31,941		247		—		120,621
Greater than 10%	—		—		3,635		965		2,180		5,302		250		—		12,332
Franchise real estate secured
0% - 5.00%	19,326		78,086		74,790		105,669		30,643		38,631		—		—		347,145
>5.00% - 10.00%	—		1,575		1,069		3,534		1,009		7,553		—		—		14,740
Greater than 10%	—		7,913		728		—		—		902		—		—		9,543
SBA secured by real estate ⁽³⁾
0% - 5.00%	2,109		7,723		13,559		16,143		8,948		23,564		364		—		72,410
>5.00% - 10.00%	—		—		694		2,260		2,430		2,780		—		—		8,164
Greater than 10%	—		—		—		1,033		413		1,620		—		—		3,066
Total business loans secured by real estate	$	136,092	$	410,425	$	398,865	$	449,016	$	313,700	$	628,168	$	6,434	$	—	$	2,342,700



	Commercial Real Estate Term Loans by Vintage
	2020		2019		2018		2017		2016		Prior		Revolving		Revolving Converted to Term During the Period		Total
March 31, 2020	(Dollars in thousands)
Commercial Loans ⁽⁴⁾
Commercial and industrial
0% - 5.00%	$	31,625	$	114,904	$	94,899	$	67,070	$	34,540	$	110,090	$	881,734	$	1,204	$	1,336,066
>5.00% - 10.00%	—		10,607		7,471		38,578		2,603		6,021		27,259		370		92,909
Greater than 10%	—		524		2,769		869		1,915		3,027		19,640		1,250		29,994
Franchise non-real estate secured
0% - 5.00%	9,938		210,415		121,918		77,413		48,552		44,294		2,062		—		514,592
>5.00% - 10.00%	323		2,370		4,036		1,977		4,174		3,430		—		—		16,310
Greater than 10%	—		—		—		13,056		—		3,835		—		—		16,891
SBA not secured by real estate
0% - 5.00%	265		2,383		1,326		2,258		601		3,503		1,572		285		12,193
>5.00% - 10.00%	—		—		469		—		387		230		—		—		1,086
Greater than 10%	—		88		141		261		—		1,709		787		—		2,986
Total commercial loans	$	42,151	$	341,291	$	233,029	$	201,482	$	92,772	$	176,139	$	933,054	$	3,109	$	2,023,027

______________________________

⁽¹⁾ SBA loans that are collateralized by hotel/motel real property.

⁽²⁾ Loans to businesses that are collateralized by real estate where the operating cash flow of the business is the primary source of repayment.

⁽³⁾ SBA loans that are collateralized by real property other than hotel/motel real property.

⁽⁴⁾ Loans to businesses where the operating cash flow of the business is the primary source of repayment.

Schedule of delinquencies in the Company's loan portfolio

The following tables stratify loans held by investment by delinquencies in the Company’s loan portfolio at the dates indicated:



			Days Past Due
	Current		30-59		60-89		90+		Total
March 31, 2020	(Dollars in thousands)
Investor loans secured by real estate
CRE non-owner-occupied	$	2,037,130	$	2,191	$	—	$	877	$	2,040,198
Multifamily	1,625,682		—		—		—		1,625,682
Construction and land	375,723		—		—		1,802		377,525
SBA secured by real estate ⁽¹⁾	58,978		1,147		1,148		392		61,665
Total investor loans secured by real estate	4,097,513		3,338		1,148		3,071		4,105,070
Business loans secured by real estate ⁽²⁾
CRE owner-occupied	1,883,996		3,636		—		—		1,887,632
Franchise real estate secured	371,428		—		—		—		371,428
SBA secured by real estate ⁽³⁾	82,608		—		—		1,032		83,640
Total business loans secured by real estate	2,338,032		3,636		—		1,032		2,342,700
Commercial loans ⁽⁴⁾
Commercial and industrial	1,452,405		1,249		354		4,961		1,458,969
Franchise non-real estate secured	538,651		—		—		9,142		547,793
SBA not secured by real estate	15,325		62		—		878		16,265
Total commercial loans	2,006,381		1,311		354		14,981		2,023,027
Retail loans
Single family residential ⁽⁵⁾	237,180		—		—		—		237,180
Consumer loans	46,892		—		—		—		46,892
Total retail loans	284,072		—		—		—		284,072
Totals	$	8,725,998	$	8,285	$	1,502	$	19,084	$	8,754,869

______________________________

⁽¹⁾ SBA loans that are collateralized by hotel/motel real property.

⁽²⁾ Loans to businesses that are collateralized by real estate where the operating cash flow of the business is the primary source of repayment.

⁽³⁾ SBA loans that are collateralized by real property other than hotel/motel real property.

⁽⁴⁾ Loans to businesses where the operating cash flow of the business is the primary source of repayment.

⁽⁵⁾Single family residential includes home equity lines of credit, as well as second trust deeds.



			Days Past Due
	Current		30-59		60-89		90+		Total Gross Loans
December 31, 2019	(Dollars in thousands)
Investor loans secured by real estate
CRE non-owner-occupied	$	2,067,874	$	1,179	$	—	$	1,088	$	2,070,141
Multifamily	1,575,726		—		—		—		1,575,726
Construction and land	438,786		—		—		—		438,786
SBA secured by real estate ⁽¹⁾	68,041		—		—		390		68,431
Total investor loans secured by real estate	4,150,427		1,179		—		1,478		4,153,084
Business loans secured by real estate ⁽²⁾
CRE owner-occupied	1,846,223		331		—		—		1,846,554
Franchise real estate secured	353,240		—		—		—		353,240
SBA secured by real estate ⁽³⁾	86,946		—		589		846		88,381
Total business loans secured by real estate	2,286,409		331		589		846		2,288,175
Commercial loans ⁽⁴⁾
Commercial and industrial	1,389,026		422		826		2,996		1,393,270
Franchise non-real estate secured	555,215		—		9,142		—		564,357
SBA not secured by real estate	16,141		167		—		1,118		17,426
Total commercial loans	1,960,382		589		9,968		4,114		1,975,053
Retail loans
Single family residential ⁽⁵⁾	255,024		—		—		—		255,024
Consumer loans	50,967		5		2		1		50,975
Total retail loans	305,991		5		2		1		305,999
Totals loans	$	8,703,209	$	2,104	$	10,559	$	6,439	$	8,722,311

______________________________

⁽¹⁾ SBA loans that are collateralized by hotel/motel real property.

⁽²⁾ Loans to businesses that are collateralized by real estate where the operating cash flow of the business is the primary source of repayment.

⁽³⁾ SBA loans that are collateralized by real property other than hotel/motel real property.

⁽⁴⁾ Loans to businesses where the operating cash flow of the business is the primary source of repayment.

⁽⁵⁾Single family residential includes home equity lines of credit, as well as second trust deeds.

Summary of Company's investment in impaired loans

The following tables provide a summary of the Company’s investment in impaired loans as of the period indicated:



	Impaired Loans
	Unpaid Principal Balance		Recorded Investment		With Specific Allowance		Without Specific Allowance		Specific Allowance for Impaired Loans
	(Dollars in thousands)
December 31, 2019
Investor loans secured by real estate
CRE non-owner-occupied	$	1,184	$	1,088	$	—	$	1,088	$	—
Multifamily	—		—		—		—		—
Construction and land	—		—		—		—		—
SBA secured by real estate ⁽¹⁾	772		390		—		390		—
Business loans secured by real estate ⁽²⁾
CRE owner-occupied	—		—		—		—		—
Franchise real estate secured	—		—		—		—		—
SBA secured by real estate ⁽³⁾	1,743		1,517		—		1,517		—
Commercial loans ⁽⁴⁾
Commercial and industrial	7,755		7,529		—		7,529		—
Franchise non-real estate secured	10,835		10,834		—		10,834		—
SBA non-real estate secured	1,555		1,118		—		1,118		—
Retail loans
Single family residential ⁽⁵⁾	412		366		—		366		—
Consumer loans	—		—		—		—		—
Totals	$	24,256	$	22,842	$	—	$	22,842	$	—

______________________________

⁽¹⁾ SBA loans that are collateralized by hotel/motel real property.

⁽²⁾ Loans to businesses that are collateralized by real estate where the operating cash flow of the business is the primary source of repayment.

⁽³⁾ SBA loans that are collateralized by real property other than hotel/motel real property.

⁽⁴⁾ Loans to businesses where the operating cash flow of the business is the primary source of repayment.

⁽⁵⁾Single family residential includes home equity lines of credit, as well as second trust deeds.

The following table presents information on impaired loans and leases, disaggregated by loan segment, for the periods indicated:



	Impaired Loans
	Three Months Ended
	December 31, 2019				March 31, 2019
	Average Recorded Investment		Interest Income Recognized ⁽⁶⁾		Average Recorded Investment		Interest Income Recognized ⁽⁶⁾
	(Dollars in thousands)
Investor loans secured by real estate
CRE non-owner-occupied	$	1,061	$	—	$	—	$	—
Multifamily	—		—		—		—
Construction and land	—		—		—		—
SBA secured by real estate ⁽¹⁾	422		—		1,889		—
Business loans secured by real estate ⁽²⁾
CRE owner-occupied	749		—		576		—
Franchise real estate secured	—		—		3,787		—
SBA secured by real estate ⁽³⁾	1,409		16		280		—
Commercial loans ⁽⁴⁾
Commercial and industrial	11,227		82		9,503		89
Franchise non-real estate secured	3,615		151		189		—
SBA non-real estate secured	1,247		—		1,110		—
Retail loans
Single family residential ⁽⁵⁾	367		—		395		—
Consumer loans	—		—		57		—
Totals	$	20,097	$	249	$	17,786	$	89

______________________________

⁽¹⁾ SBA loans that are collateralized by hotel/motel real property.

⁽²⁾ Loans to businesses that are collateralized by real estate where the operating cash flow of the business is the primary source of repayment.

⁽³⁾ SBA loans that are collateralized by real property other than hotel/motel real property.

⁽⁴⁾ Loans to businesses where the operating cash flow of the business is the primary source of repayment.

⁽⁵⁾Single family residential includes home equity lines of credit, as well as second trust deeds.

⁽⁶⁾ Interest income recognized represents interest on accruing loans.

Summary of nonaccrual loans

The following tables provide a summary of nonaccrual loans as of the date indicated:



	Nonaccrual Loans ⁽¹⁾
	Collateral Dependent Loans		ACL		Non-Collateral Dependent Loans		ACL		Total Nonaccrual Loans ⁽²⁾		Nonaccrual Loans With No ACL
March 31, 2020	(Dollars in thousands)
Investor loans secured by real estate
CRE non-owner-occupied	$	318	$	—	$	559	$	—	$	877	$	877
Multifamily	—		—		—		—		—		—
Construction and land	1,802		—		—		—		1,802		1,802
SBA secured by real estate ⁽³⁾	392		—		—		—		392		392
Total investor loans secured by real estate	2,512		—		559		—		3,071		3,071
Business loans secured by real estate ⁽⁴⁾
CRE owner-occupied	—		—		322		27		322		—
Franchise real estate secured	—		—		—		—		—		—
SBA secured by real estate ⁽⁵⁾	1,033		—		79		13		1,112		1,033
Total business loans secured by real estate	1,033		—		401		40		1,434		1,033
Commercial loans ⁽⁶⁾
Commercial and industrial	1,063		—		4,613		215		5,676		1,063
Franchise non-real estate secured	—		—		9,142		1,475		9,142		—
SBA non-real estate secured	878		—		51		6		929		877
Total commercial loans	1,941		—		13,806		1,696		15,747		1,940
Retail loans
Single family residential ⁽⁷⁾	—		—		358		3		358		—
Consumer loans	—		—		—		—		—		—
Total retail loans	—		—		358		3		358		—
Totals nonaccrual loans	$	5,486	$	—	$	15,124	$	1,739	$	20,610	$	6,044

______________________________

⁽¹⁾ The ACL for nonaccrual loans is determined based on a discounted cash flow methodology unless the loan is considered collateral dependent. The ACL for collateral dependent loans is determined based on the estimated fair value of the underlying collateral.

⁽²⁾ No interest income was recognized on nonaccrual loans during the quarter ended March 31, 2020.

⁽³⁾ SBA loans that are collateralized by hotel/motel real property.

⁽⁴⁾ Loans to businesses that are collateralized by real estate where the operating cash flow of the business is the primary source of repayment.

⁽⁵⁾ SBA loans that are collateralized by real property other than hotel/motel real property.

⁽⁶⁾ Loans to businesses where the operating cash flow of the business is the primary source of repayment.

⁽⁷⁾Single family residential includes home equity lines of credit, as well as second trust deeds.

Schedule of collateral dependent loans by collateral type

The following table summarizes collateral dependent loans by collateral type as of March 31, 2020:



	March 31, 2020
	Office Properties		Industrial Properties		Retail Properties		Hotel Properties		Multifamily Properties		Various Business Assets		Total
	(Dollars in thousands)
Investor loan secured by real estate
CRE non-owner-occupied	$	—	$	—	$	—	$	318	$	—	$	—	$	318
Multifamily	—		—		—		—		—		—		—
Construction and land	—		—		—		—		1,802		—		1,802
SBA secured by real estate ⁽¹⁾	—		—		—		392		—		—		392
Total investor loans secured by real estate	—		—		—		710		1,802		—		2,512
Business loans secured by real estate ⁽²⁾
CRE owner-occupied	—		—		—		—		—		—		—
Franchise real estate secured	—		—		—		—		—		—		—
SBA secured by real estate ⁽³⁾	277		756		—		—		—		—		1,033
Total business loans secured by real estate	277		756		—		—		—		—		1,033
Commercial loans ⁽⁴⁾
Commercial and industrial	313		—		—		—		—		1,295		1,608
Franchise non-real estate secured	—		—		—		—		—		—		—
SBA non-real estate secured	—		—		—		—		—		877		877
Total commercial loans	313		—		—		—		—		2,172		2,485
Retail loans
Single family residential ⁽⁵⁾	—		—		—		—		—		—		—
Consumer loans	—		—		—		—		—		—		—
Total retail loans	—		—		—		—		—		—		—
Totals collateral dependent loans	$	590	$	756	$	—	$	710	$	1,802	$	2,172	$	6,030

______________________________

⁽¹⁾ SBA loans that are collateralized by hotel/motel real property.

⁽²⁾ Loans to businesses that are collateralized by real estate where the operating cash flow of the business is the primary source of repayment.

⁽³⁾ SBA loans that are collateralized by real property other than hotel/motel real property.

⁽⁴⁾ Loans to businesses where the operating cash flow of the business is the primary source of repayment.

⁽⁵⁾Single family residential includes home equity lines of credit, as well as second trust deeds.