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Allowance for Credit Losses (Tables)
 12 Months Ended
Dec. 31, 2020
Credit Loss [Abstract]  
Summary of allocation of the allowance for credit losses
The following table provides the allocation of the ACL for loans held for investment as well as the activity in the ACL attributed to various segments in the loan portfolio as of, and for the period indicated:


For the Year Ended December 31, 2020
 Beginning ACL Balance (1)
 Adoption of ASC 326  Initial ACL Recorded for PCD Loans  Charge-offs  Recoveries Provision for Credit Losses  Ending
ACL Balance
(Dollars in thousands)
Investor loans secured by real estate
CRE non-owner occupied$1,899 $8,423 $3,025 $(839)$44 $36,624 $49,176 
Multifamily729 9,174 8,710 — — 43,921 62,534 
Construction and land4,484 (124)2,051 (539)— 6,563 12,435 
SBA secured by real estate1,915 (1,401)— (705)34 5,316 5,159 
Business loans secured by real estate
CRE owner-occupied2,781 20,166 3,766 (1,739)59 25,484 50,517 
Franchise real estate secured592 5,199 — (932)— 6,592 11,451 
SBA secured by real estate2,119 2,207 235 (338)147 2,197 6,567 
Commercial loans
Commercial and industrial13,857 87 2,325 (6,891)1,818 35,768 46,964 
Franchise non-real estate secured5,816 9,214 — (6,731)866 11,360 20,525 
SBA non-real estate secured445 218 924 (899)14 293 995 
Retail loans
Single family residential655 541 206 (106)2 (94)1,204 
Consumer loans406 1,982 — (139)4 (1,762)491 
Totals$35,698 $55,686 $21,242 $(19,858)$2,988 $172,262 $268,018 
______________________________
(1) Beginning ACL balance represents the ALLL accounted for under ASC 450 and ASC 310, which is reflective of probable incurred losses as of the balance sheet date.
The following table provides the allocation of the ALLL for loans held for investment as well as the activity attributed to various segments in the loan portfolio as of, and for the period indicated, as determined in accordance with ASC 450 and ASC 310, prior to the adoption of ASC 326:

For the Year Ended December 31, 2019
Beginning ALLL BalanceCharge-offsRecoveriesProvision for Credit LossesEnding
ALLL Balance
(Dollars in thousands)
Investor loans secured by real estate
CRE non-owner-occupied$1,624 $(625)$— $900 $1,899 
Multifamily740 — — (11)729 
Construction and land5,964 — — (1,480)4,484 
SBA secured by real estate1,827 (742)— 830 1,915 
Business loans secured by real estate
CRE owner-occupied1,908 (125)46 952 2,781 
Franchise real estate secured743 (1,377)— 1,226 592 
SBA secured by real estate1,824 (908)10 1,193 2,119 
Commercial loans
Commercial and industrial13,695 (2,318)189 2,291 13,857 
Franchise non-real estate secured6,066 (1,154)18 886 5,816 
SBA non-real estate secured654 (588)68 311 445 
Retail loans
Single family residential808 — 2 (155)655 
Consumer loans219 (16)11 192 406 
Totals$36,072 $(7,853)$344 $7,135 $35,698 
For the Year Ended December 31, 2018
Beginning ALLL BalanceCharge-offsRecoveriesProvision for Credit LossesEnding
ALLL Balance
(Dollars in thousands)
Investor loans secured by real estate
CRE non-owner-occupied$1,273 $— $— $351 $1,624 
Multifamily614 — — 126 740 
Construction and land5,565 — — 399 5,964 
SBA secured by real estate1,396 — — 431 1,827 
Business loans secured by real estate
CRE owner-occupied923 (33)47 971 1,908 
Franchise real estate secured602 — — 141 743 
SBA secured by real estate901 — — 923 1,824 
Commercial loans
Commercial and industrial11,018 (1,411)698 3,390 13,695 
Franchise non-real estate secured5,191 — — 875 6,066 
SBA non-real estate secured594 (102)169 (7)654 
Retail loans
Single family residential804 — 13 (9)808 
Consumer loans55 (409)8 565 219 
Totals$28,936 $(1,955)$935 $8,156 $36,072 
The following table presents loans individually and collectively evaluated for impairment and their respective ALLL allocation at December 31, 2019 as determined in accordance with ASC 450 and ASC 310, prior to the adoption of ASC 326:
December 31, 2019
Loans Evaluated Individually for ImpairmentALLL Attributed to Individually Evaluated LoansLoans Evaluated Collectively for ImpairmentALLL Attributed to Collectively Evaluated Loans
(Dollars in thousands)
Investor loans secured by real estate
CRE non-owner-occupied$1,088 $— $2,069,053 $1,899 
Multifamily— — 1,575,726 729 
Construction and land— — 438,786 4,484 
SBA secured by real estate390 — 68,041 1,915 
Business loans secured by real estate
CRE owner-occupied— — 1,846,554 2,781 
Franchise real estate secured— — 353,240 592 
SBA secured by real estate1,517 — 86,864 2,119 
Commercial loans
Commercial and industrial7,529 — 1,385,741 13,857 
Franchise non-real estate secured10,834 — 553,523 5,816 
SBA non-real estate secured1,118 — 16,308 445 
Retail loans
Single family residential366 — 254,658 655 
Consumer loans— — 50,975 406 
Totals$22,842 $— $8,699,469 $35,698 
Schedule of allowance for credit quality indicators
The following table stratifies the loans held for investment portfolio by the Company’s internal risk grading, and by year of origination, as of December 31, 2020:
Term Loans by Vintage
20202019201820172016PriorRevolvingRevolving Converted to Term During the PeriodTotal
December 31, 2020(Dollars in thousands)
Investor loans secured by real estate
CRE non-owner-occupied
Pass$265,901 $541,994 $440,351 $287,580 $279,238 $791,477 $11,114 $— $2,617,655 
Special mention— — 6,669 437 2,516 29,738 — — 39,360 
Substandard— 9,732 2,045 — 516 5,218 559 — 18,070 
Multifamily
Pass1,027,644 1,677,716 899,123 665,939 354,859 531,287 420 — 5,156,988 
Special mention— 1,758 2,630 — 8,649 — — — 13,037 
Substandard— — — 559 772 — — — 1,331 
Construction and land
Pass57,309 144,759 73,313 18,625 20,531 6,672 784 — 321,993 
SBA secured by real estate
Pass— 8,306 9,029 13,418 6,305 7,696 — — 44,754 
Special mention496 1,032 1,159 1,000 373 306 — — 4,366 
Substandard— 1,220 2,959 1,091 400 2,541 — — 8,211 
Total investor loans secured by real estate$1,351,350 $2,386,517 $1,437,278 $988,649 $674,159 $1,374,935 $12,877 $— $8,225,765 
Business loans secured by real estate
CRE owner-occupied
Pass$293,324 $409,758 $332,672 $327,475 $225,098 $469,704 $14,268 $246 $2,072,545 
Special mention2,190 15,917 3,802 — 4,153 201 — — 26,263 
Substandard— — 3,636 4,214 1,169 5,973 250 — 15,242 
Franchise real estate secured
Pass44,413 81,438 66,241 96,999 24,673 27,020 — — 340,784 
Special mention878 1,650 2,652 — — — — — 5,180 
Substandard— — — — 1,968 — — — 1,968 
SBA secured by real estate
Pass3,253 7,637 12,608 16,058 8,488 23,624 — — 71,668 
Special mention— — 1,200 — 137 — — — 1,337 
Substandard— — 184 1,987 1,376 3,043 — — 6,590 
Total loans secured by business real estate$344,058 $516,400 $422,995 $446,733 $267,062 $529,565 $14,518 $246 $2,541,577 
Commercial Loans
Commercial and industrial
Pass$127,082 $260,368 $159,001 $210,163 $51,800 $82,291 $801,752 $9,315 $1,701,772 
Special mention735 — 2,331 185 1,320 243 17,890 37 22,741 
Substandard— 3,310 2,737 610 1,333 2,446 32,858 1,027 44,321 
Franchise non-real estate secured
Pass27,607 164,025 94,494 46,174 40,829 27,745 1,361 502 402,737 
Special mention— 7,267 2,037 230 480 2,321 — — 12,335 
Substandard— 6,690 3,706 18,425 700 204 — — 29,725 
SBA non-real estate secured
Pass407 2,257 1,558 2,674 610 4,449 — 259 12,214 
Special mention— — — 1,574 — — — — 1,574 
Substandard— 83 357 282 340 400 707 — 2,169 
Total commercial loans$155,831 $444,000 $266,221 $280,317 $97,412 $120,099 $854,568 $11,140 $2,229,588 
Term Loans by Vintage
20202019201820172016PriorRevolvingRevolving Converted to Term During the PeriodTotal
December 31, 2020(Dollars in thousands)
Retail Loans
Single family residential
Pass$10,794 $7,714 $13,982 $14,039 $33,968 $124,248 $27,172 — $231,917 
Substandard— — — — — 657 — — 657 
Consumer loans
Pass52 112 37 25 2 3,145 3,508 — 6,881 
Substandard— 7 — — — 41 — — 48 
Total retail loans$10,846 $7,833 $14,019 $14,064 $33,970 $128,091 $30,680 $— $239,503 
Totals gross loans$1,862,085 $3,354,750 $2,140,513 $1,729,763 $1,072,603 $2,152,690 $912,643 $11,386 $13,236,433 

The following table stratifies the loan portfolio by the Company’s internal risk rating as of December 31, 2019:

 Credit Risk Grades
PassSpecial
Mention		SubstandardTotal Gross
Loans
(Dollars in thousands)
December 31, 2019
Investor loans secured by real estate
CRE non-owner-occupied$2,067,875 $1,178 $1,088 $2,070,141 
Multifamily1,575,510 — 216 1,575,726 
Construction and land438,769 — 17 438,786 
SBA secured by real estate65,835 973 1,623 68,431 
Total investor loans secured by real estate4,147,989 2,151 2,944 4,153,084 
Business loans secured by real estate
CRE owner-occupied1,831,853 11,167 3,534 1,846,554 
Franchise real estate secured352,319 921 — 353,240 
SBA secured by real estate83,106 1,842 3,433 88,381 
Total business loans secured by real estate2,267,278 13,930 6,967 2,288,175 
Commercial loans
Commercial and industrial1,359,662 13,226 20,382 1,393,270 
Franchise non-real estate secured546,594 6,930 10,833 564,357 
SBA not secured by real estate13,933 485 3,008 17,426 
Total commercial loans1,920,189 20,641 34,223 1,975,053 
Retail loans
Single family residential254,463 — 561 255,024 
Consumer loans50,921 — 54 50,975 
Total retail loans305,384 — 615 305,999 
Total gross loans$8,640,840 $36,722 $44,749 $8,722,311 
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
20202019201820172016PriorRevolvingRevolving Converted to Term During the PeriodTotal
(Dollars in thousands)
December 31, 2020
Investor loans secured by real estate
CRE non-owner-occupied
0% - 5.00%$261,885 $491,522 $431,791 $266,942 $254,527 $763,101 $11,114 $— $2,480,882 
>5.00% - 10.00%4,016 34,360 5,794 10,558 16,961 33,734 — — 105,423 
Greater than 10%— 25,844 11,480 10,517 10,782 29,598 559 — 88,780 
Multifamily
0% - 5.00%950,089 1,610,011 878,233 634,268 349,549 516,452 — — 4,938,602 
>5.00% - 10.00%38,892 59,500 12,181 19,751 10,917 13,606 — — 154,847 
Greater than 10%38,663 9,963 11,339 12,479 3,814 1,229 420 — 77,907 
Construction and Land
0% - 5.00%55,785 40,860 4,604 11,238 — 6,412 784 — 119,683 
>5.00% - 10.00%1,123 41,046 9,197 3,601 — 260 — — 55,227 
Greater than 10%401 62,853 59,512 3,786 20,531 — — — 147,083 
SBA secured by real estate
0% - 5.00%496 10,400 12,558 14,497 7,078 10,032 — — 55,061 
>5.00% - 10.00%— — — 1,012 — — — — 1,012 
Greater than 10%— 158 589 — — 511 — — 1,258 
Total investor loans secured by real estate$1,351,350 $2,386,517 $1,437,278 $988,649 $674,159 $1,374,935 $12,877 $— $8,225,765 
Business loans secured by real estate
CRE owner-occupied
0% - 5.00%$286,745 $367,269 $274,512 $295,809 $202,282 $422,614 $10,393 $246 $1,859,870 
>5.00% - 10.00%8,769 42,310 60,222 28,421 23,875 44,855 3,875 — 212,327 
Greater than 10%— 16,096 5,376 7,459 4,263 8,409 250 — 41,853 
Franchise real estate secured
0% - 5.00%37,262 79,926 65,619 96,672 19,046 22,927 — — 321,452 
>5.00% - 10.00%7,587 1,650 3,274 327 5,627 4,093 — — 22,558 
Greater than 10%442 1,512 — — 1,968 — — — 3,922 
SBA secured by real estate
0% - 5.00%3,253 7,637 11,840 15,069 5,707 18,742 — — 62,248 
>5.00% - 10.00%— — 768 989 2,780 4,882 — — 9,419 
Greater than 10%— — 1,384 1,987 1,514 3,043 — — 7,928 
Total business loans secured by real estate$344,058 $516,400 $422,995 $446,733 $267,062 $529,565 $14,518 $246 $2,541,577 
Commercial Real Estate Term Loans by Vintage
20202019201820172016PriorRevolvingRevolving Converted to Term During the PeriodTotal
(Dollars in thousands)
December 31, 2020
Commercial Loans
Commercial and industrial
0% - 5.00%$70,233 $205,395 $99,178 $193,046 $36,957 $62,682 $394,124 $5,051 $1,066,666 
>5.00% - 10.00%49,883 50,743 35,813 13,427 12,922 13,948 322,123 2,469 501,328 
Greater than 10%7,701 7,540 29,078 4,485 4,574 8,350 136,253 2,859 200,840 
Franchise non-real estate secured
0% - 5.00%21,409 145,392 88,171 38,010 21,956 23,479 — 502 338,919 
>5.00% - 10.00%6,198 15,754 5,454 8,164 18,415 3,626 — — 57,611 
Greater than 10%— 16,836 6,612 18,655 1,638 3,165 1,361 — 48,267 
SBA not secured by real estate
0% - 5.00%407 2,257 910 1,078 441 2,782 — — 7,875 
>5.00% - 10.00%— — 648 1,596 169 1,652 — 259 4,324 
Greater than 10%— 83 357 1,856 340 415 707 — 3,758 
Total commercial loans$155,831 $444,000 $266,221 $280,317 $97,412 $120,099 $854,568 $11,140 $2,229,588 
A significant driver in the ACL for loans in the investor real estate secured and business real estate secured segments is loan to value (“LTV”). 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
20202019201820172016PriorRevolvingRevolving Converted to Term During the PeriodTotal
(Dollars in thousands)
December 31, 2020
Investor loans secured by real estate
CRE non-owner-occupied
55% and below$138,007 $229,272 $182,385 $136,355 $189,848 $588,230 $11,114 $— $1,475,211 
>55-65%101,434 217,210 92,015 130,024 78,470 204,161 559 — 823,873 
>65-75%26,460 102,494 169,878 18,876 13,952 29,506 — — 361,166 
Greater than 75%— 2,750 4,787 2,762 — 4,536 — — 14,835 
Multifamily
55% and below218,833 345,519 294,464 233,997 84,530 269,906 — — 1,447,249 
>55-65%381,737 731,408 381,282 215,170 152,066 189,151 420 — 2,051,234 
>65-75%427,074 583,078 215,389 215,452 127,684 66,457 — — 1,635,134 
Greater than 75%— 19,469 10,618 1,879 — 5,773 — — 37,739 
Construction and land
55% and below57,309 105,308 36,068 18,625 20,531 6,672 784 — 245,297 
>55-65%— 36,113 23,770 — — — — — 59,883 
>65-75%— 3,338 13,475 — — — — — 16,813 
Greater than 75%— — — — — — — — — 
SBA secured by real estate
55% and below— 2,066 649 673 317 778 — — 4,483 
>55-65%— 2,427 1,639 4,008 879 4,354 — — 13,307 
>65-75%— 3,897 3,882 3,482 4,519 1,884 — — 17,664 
Greater than 75%496 2,168 6,977 7,346 1,363 3,527 — — 21,877 
Total investor loans secured by real estate$1,351,350 $2,386,517 $1,437,278 $988,649 $674,159 $1,374,935 $12,877 $— $8,225,765 
Business loan secured by real estate
CRE owner-occupied
55% and below$96,803 $160,605 $157,868 $179,791 $131,795 $328,188 $14,518 $246 $1,069,814 
>55-65%72,044 91,028 98,176 94,712 65,120 90,548 — — 511,628 
>65-75%71,692 152,920 79,106 43,832 31,303 31,493 — — 410,346 
Greater than 75%54,975 21,122 4,960 13,354 2,202 25,649 — — 122,262 
Franchise real estate secured
55% and below20,801 10,470 13,864 20,956 9,189 16,213 — — 91,493 
>55-65%2,689 9,955 16,001 19,102 6,855 2,333 — — 56,935 
>65-75%19,349 51,719 23,258 9,153 10,597 7,236 — — 121,312 
Greater than 75%2,452 10,944 15,770 47,788 — 1,238 — — 78,192 
SBA secured by real estate
55% and below1,825 1,626 5,332 5,495 3,615 13,582 — — 31,475 
>55-65%246 513 1,795 1,094 3,586 5,448 — — 12,682 
>65-75%264 3,142 1,515 3,968 1,586 4,043 — — 14,518 
Greater than 75%918 2,356 5,350 7,488 1,214 3,594 — — 20,920 
Total business loans secured by real estate$344,058 $516,400 $422,995 $446,733 $267,062 $529,565 $14,518 $246 $2,541,577 
The following table presents FICO bands for the retail segment of the loan portfolio as of the date indicated:
Term Loans by Vintage
20202019201820172016PriorRevolvingRevolving Converted to Term During the PeriodTotal
(Dollars in thousands)
December 31, 2020
Retail Loans
Single family residential
Greater than 740$10,794 $6,531 $12,679 $8,846 $28,222 $81,838 $19,588 $— $168,498 
>680 - 740— 1,183 1,303 4,732 2,614 15,624 6,685 — 32,141 
>580 - 680— — — 461 3,132 7,473 864 — 11,930 
Less than 580— — — — — 19,970 35 — 20,005 
Consumer loans
Greater than 74052 69 31 22 1 2,609 2,198 — 4,982 
>680 - 740— 35 6 3 — 469 1,227 — 1,740 
>580 - 680— 15 — — 1 95 56 — 167 
Less than 580— — — — — 13 27 — 40 
Total retail loans$10,846 $7,833 $14,019 $14,064 $33,970 $128,091 $30,680 $— $239,503