

	March 31, 2019					December 31, 2018
	Total			Percent of Total		Total			Percent of Total
Residential and other consumer:
1-4 single family residential	$	4,657,344		20.9	%	$	4,606,828		21.0	%
Government insured residential	312,312			1.4	%	265,701			1.2	%
Other	14,341			0.1	%	17,369			0.1	%
	4,983,997			22.4	%	4,889,898			22.3	%
Commercial:
Multi-family	2,534,527			11.4	%	2,583,331			11.8	%
Non-owner occupied commercial real estate	4,817,629			21.5	%	4,700,188			21.4	%
Construction and land	213,634			1.0	%	227,134			1.0	%
Owner occupied commercial real estate	2,093,373			9.4	%	2,122,381			9.7	%
Commercial and industrial	5,039,938			22.5	%	4,801,226			21.9	%
Commercial lending subsidiaries	2,629,874			11.8	%	2,608,834			11.9	%
	17,328,975			77.6	%	17,043,094			77.7	%
Total loans	22,312,972			100.0	%	21,932,992			100.0	%
Premiums, discounts and deferred fees and costs, net	45,845					44,016
Loans including premiums, discounts and deferred fees and costs	22,358,817					21,977,008
Allowance for loan and lease losses	(114,703		)			(109,931		)
Loans, net	$	22,244,114				$	21,867,077

Through two subsidiaries, the Bank provides commercial and municipal equipment and franchise financing utilizing both loan and lease structures. At March 31, 2019 and December 31, 2018, the commercial lending subsidiaries portfolio included a net investment in leases of $743 million and $739 million, respectively.

During the three months ended March 31, 2019 and 2018, the Company purchased 1-4 single family residential loans totaling $305 million and $333 million, respectively. Purchases for the three months ended March 31, 2019 and 2018 included $133 million and $39 million, respectively, of government insured residential loans.

At March 31, 2019 and December 31, 2018, the UPB of ACI loans was $390 million and $408 million, respectively. The accretable yield on ACI loans represents the amount by which undiscounted expected future cash flows exceed recorded investment. Changes in the accretable yield on ACI loans for the three months ended March 31, 2019 and the year ended December 31, 2018 were as follows (in thousands):



Balance at December 31, 2017	$	455,059
Reclassifications from non-accretable difference, net	128,499
Accretion	(369,915		)
Other changes, net ⁽¹⁾	78,204
Balance at December 31, 2018	291,847
Reclassifications from non-accretable difference, net	3,440
Accretion	(16,415		)
Balance at March 31, 2019	$	278,872



	Three Months Ended March 31,
	2019								2018
	Residential and Other Consumer		Commercial			Total			Residential and Other Consumer			Commercial			Total
Beginning balance	$	10,788	$	99,143		$	109,931		$	10,720		$	134,075		$	144,795
Provision	150		10,131			10,281			374			2,773			3,147
Charge-offs	—		(6,133		)	(6,133		)	(282		)	(10,350		)	(10,632		)
Recoveries	14		610			624			20			146			166
Ending balance	$	10,952	$	103,751		$	114,703		$	10,832		$	126,644		$	137,476



	March 31, 2019						December 31, 2018
	Residential and Other Consumer		Commercial		Total		Residential and Other Consumer		Commercial		Total
Allowance for loan and lease losses:
Ending balance	$	10,952	$	103,751	$	114,703	$	10,788	$	99,143	$	109,931
Ending balance: loans individually evaluated for impairment	$	9	$	13,667	$	13,676	$	134	$	12,143	$	12,277
Ending balance: loans collectively evaluated for impairment	$	10,943	$	90,084	$	101,027	$	10,654	$	87,000	$	97,654
Ending balance: ACI loans	$	—	$	—	$	—	$	—	$	—	$	—
Loans:					0
Ending balance	$	5,045,687	$	17,313,130	$	22,358,817	$	4,948,989	$	17,028,019	$	21,977,008
Ending balance: loans individually evaluated for impairment	$	10,891	$	122,442	$	133,333	$	7,690	$	108,841	$	116,531
Ending balance: loans collectively evaluated for impairment	$	4,848,910	$	17,172,907	$	22,021,817	$	4,751,076	$	16,901,253	$	21,652,329
Ending balance: ACI loans	$	185,886	$	17,781	$	203,667	$	190,223	$	17,925	$	208,148

Loans, other than ACI loans and government insured residential loans, are considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due, according to the contractual terms of the loan agreements. Commercial relationships with committed balances greater than or equal to $1.0 million that have internal risk ratings of substandard or doubtful and are on non-accrual status, as well as loans that have been modified in TDRs, are individually evaluated for impairment. Other commercial relationships on non-accrual status with committed balances under $1.0 million may also be evaluated individually for impairment at management's discretion. The likelihood of loss related to loans assigned internal risk ratings of substandard or doubtful is considered elevated due to their identified credit weaknesses. Factors considered by management in evaluating impairment include payment status, financial condition of the borrower, collateral value, and other factors impacting the probability of collecting scheduled principal and interest payments when due.

An ACI pool or loan is considered to be impaired when it is probable that the Company will be unable to collect all the cash flows expected at acquisition, plus additional cash flows expected to be collected arising from changes in estimates after acquisition. 1-4 single family residential and home equity ACI loans accounted for in pools are evaluated collectively for impairment on a pool by pool basis based on expected pool cash flows. Commercial ACI loans are individually evaluated for impairment based on expected cash flows from the individual loans. Discount continues to be accreted on ACI loans or pools as long as there are expected future cash flows in excess of the current carrying amount of the loans or pools.



	March 31, 2019						December 31, 2018
	Recorded Investment		UPB		Related Specific Allowance		Recorded Investment		UPB		Related Specific Allowance
With no specific allowance recorded:
1-4 single family residential ⁽¹⁾	$	10,338	$	10,193	$	—	$	5,724	$	5,605	$	—
Multi-family	25,298		25,329		—		25,560		25,592		—
Non-owner occupied commercial real estate	10,685		10,594		—		12,293		12,209		—
Construction and land	8,694		8,697		—		9,923		9,925		—
Owner occupied commercial real estate	10,691		10,729		—		9,007		9,024		—
Commercial and industrial	11,740		11,750		—		13,514		13,519		—
Commercial lending subsidiaries	2,744		2,757		—		3,152		3,149		—
With a specific allowance recorded:
1-4 single family residential ⁽¹⁾	553		541		9		1,966		1,941		134
Owner occupied commercial real estate	—		—		—		3,316		3,322		844
Non-owner occupied commercial real estate	12,411		12,399		2,165		1,666		1,667		731
Construction and land	1,096		1,096		110		—		—		—
Commercial and industrial	20,685		20,660		5,083		10,939		10,946		3,831
Commercial lending subsidiaries	18,398		18,311		6,309		19,471		19,385		6,737
Total:
Residential and other consumer	$	10,891	$	10,734	$	9	$	7,690	$	7,546	$	134
Commercial	122,442		122,322		13,667		108,841		108,738		12,143
	$	133,333	$	133,056	$	13,676	$	116,531	$	116,284	$	12,277



	Three Months Ended March 31,
	2019		2018
Residential and other consumer:
1-4 single family residential	$	9,291	$	4,596
Commercial:
Multi-family	25,429		24,720
Non-owner occupied commercial real estate	18,528		12,876
Construction and land	9,857		3,148
Owner occupied commercial real estate	11,507		21,599
Commercial and industrial	28,439		110,312
Commercial lending subsidiaries	21,883		2,126
	115,643		174,781
	$	124,934	$	179,377



	March 31, 2019		December 31, 2018
Residential and other consumer:
1-4 single family residential	$	7,355	$	6,316
Other consumer loans	283		288
	7,638		6,604
Commercial:
Multi-family	25,298		25,560
Non-owner occupied commercial real estate	25,459		16,050
Construction and land	9,790		9,923
Owner occupied commercial real estate	18,439		19,789
Commercial and industrial	24,346		28,584
Commercial lending subsidiaries	22,224		22,733
	125,556		122,639
	$	133,194	$	129,243

Loans contractually delinquent by 90 days or more and still accruing totaled $0.7 million at December 31, 2018. There were no loans contractually delinquent by 90 days and still accruing at March 31, 2019. The amount of additional interest income that would have been recognized on non-accrual loans had they performed in accordance with their contractual terms was approximately $2.0 million and $1.4 million for the three months ended March 31, 2019 and 2018, respectively.

Management considers delinquency status to be the most meaningful indicator of the credit quality of 1-4 single family residential, home equity and consumer loans. Delinquency statistics are updated at least monthly. See "Aging of loans" below for more information on the delinquency status of loans. Original LTV and original FICO score are also important indicators of credit quality for 1-4 single family residential loans other than the FSB loans and government insured loans.

Internal risk ratings are considered the most meaningful indicator of credit quality for commercial loans. Internal risk ratings are a key factor in identifying loans that are individually evaluated for impairment and impact management’s estimates of loss factors used in determining the amount of the ALLL. Internal risk ratings are updated on a continuous basis. Generally, relationships with balances in excess of defined thresholds, ranging from $1 million to $3 million, are re-evaluated at least annually and more frequently if circumstances indicate that a change in risk rating may be warranted. Loans exhibiting potential credit weaknesses that deserve management’s close attention and that if left uncorrected may result in deterioration of the repayment capacity of the borrower are categorized as special mention. Loans with well-defined credit weaknesses, including payment defaults, declining collateral values, frequent overdrafts, operating losses, increasing balance sheet leverage, inadequate cash flow, project cost overruns, unreasonable construction delays, past due real estate taxes or exhausted interest reserves, are assigned an internal risk rating of substandard. A loan with a weakness so severe that collection in full is highly questionable or improbable, but because of certain reasonably specific pending factors has not been charged off, will be assigned an internal risk rating of doubtful.



	March 31, 2019
	FICO
LTV	720 or less		721 - 740		741 - 760		761 or greater		Total
60% or less	$	105,240	$	125,817	$	192,383	$	799,247	$	1,222,687
60% - 70%	124,602		109,812		171,155		607,402		1,012,971
70% - 80%	165,318		206,489		381,236		1,288,028		2,041,071
More than 80%	19,016		36,464		43,214		146,150		244,844
	$	414,176	$	478,582	$	787,988	$	2,840,827	$	4,521,573



	December 31, 2018
	FICO
LTV	720 or less		721 - 740		741 - 760		761 or greater		Total
60% or less	$	105,812	$	123,877	$	197,492	$	813,944	$	1,241,125
60% - 70%	120,982		109,207		170,531		597,659		998,379
70% - 80%	156,519		203,121		374,311		1,264,491		1,998,442
More than 80%	17,352		35,036		36,723		136,487		225,598
	$	400,665	$	471,241	$	779,057	$	2,812,581	$	4,463,544



	March 31, 2019
											Commercial Lending Subsidiaries
	Multi-Family		Non-Owner Occupied Commercial Real Estate		Construction and Land		Owner Occupied Commercial Real Estate		Commercial and Industrial		Pinnacle		Bridge		Total
Pass	$	2,502,332	$	4,734,775	$	203,619	$	2,034,437	$	4,944,693	$	1,450,317	$	1,128,649	$	16,998,822
Special mention	—		2,565		—		25,233		23,460		—		24,625		75,883
Substandard	34,256		69,068		9,790		30,844		57,393		—		27,819		229,170
Doubtful	—		—		—		—		2,950		—		6,305		9,255
	$	2,536,588	$	4,806,408	$	213,409	$	2,090,514	$	5,028,496	$	1,450,317	$	1,187,398	$	17,313,130



	December 31, 2018
											Commercial Lending Subsidiaries
	Multi-Family		Non-Owner Occupied Commercial Real Estate		Construction and Land		Owner Occupied Commercial Real Estate		Commercial and Industrial		Pinnacle		Bridge		Total
Pass	$	2,547,835	$	4,611,029	$	216,917	$	2,077,611	$	4,706,666	$	1,462,655	$	1,105,821	$	16,728,534
Special mention	2,932		16,516		—		13,368		38,097		—		10,157		81,070
Substandard	34,654		61,335		9,923		28,901		43,691		—		31,522		210,026
Doubtful	—		—		—		—		1,746		—		6,643		8,389
	$	2,585,421	$	4,688,880	$	226,840	$	2,119,880	$	4,790,200	$	1,462,655	$	1,154,143	$	17,028,019



	March 31, 2019										December 31, 2018
	Current		30 - 59 Days Past Due		60 - 89 Days Past Due		90 Days or More Past Due		Total		Current		30 - 59 Days Past Due		60 - 89 Days Past Due		90 Days or More Past Due		Total
1-4 single family residential	$	4,527,777	$	175,741	$	7,983	$	6,552	$	4,718,053	$	4,640,771	$	15,070	$	2,126	$	6,953	$	4,664,920
Government insured residential	33,354		14,518		17,965		247,474		313,311		31,348		8,342		8,871		218,168		266,729
Home equity loans and lines of credit	1,405		—		—		—		1,405		1,393		—		—		—		1,393
Other consumer loans	10,913		—		2,005		—		12,918		15,947		—		—		—		15,947
Multi-family	2,536,588		—		—		—		2,536,588		2,585,421		—		—		—		2,585,421
Non-owner occupied commercial real estate	4,784,011		7,819		12,411		2,167		4,806,408		4,682,443		3,621		1,374		1,442		4,688,880
Construction and land	209,374		2,939		—		1,096		213,409		224,828		916		—		1,096		226,840
Owner occupied commercial real estate	2,078,379		2,834		1,881		7,420		2,090,514		2,106,104		2,826		1,087		9,863		2,119,880
Commercial and industrial	5,017,066		864		208		10,358		5,028,496		4,772,978		6,732		926		9,564		4,790,200
Commercial lending subsidiaries
Pinnacle	1,450,317		—		—		—		1,450,317		1,462,655		—		—		—		1,462,655
Bridge	1,183,944		3,384		—		70		1,187,398		1,152,312		603		—		1,228		1,154,143
	$	21,833,128	$	208,099	$	42,453	$	275,137	$	22,358,817	$	21,676,200	$	38,110	$	14,384	$	248,314	$	21,977,008

The carrying amount of foreclosed residential real estate included in "Other assets" in the accompanying consolidated balance sheets totaled $6 million at both March 31, 2019 and December 31, 2018. The recorded investment in non-government insured residential mortgage loans in the process of foreclosure was insignificant at March 31, 2019 and December 31, 2018. The recorded investment in government insured residential loans in the process of foreclosure totaled $125 million and $85 million at March 31, 2019 and December 31, 2018, respectively.



	Three Months Ended March 31,
	2019						2018
	Loans Modified in TDRs During the Period			TDRs Experiencing Payment Defaults During the Period			Loans Modified in TDRs During the Period			TDRs Experiencing Payment Defaults During the Period
	Number of TDRs	Recorded Investment		Number of TDRs	Recorded Investment		Number of TDRs	Recorded Investment		Number of TDRs	Recorded Investment
1-4 single family residential⁽¹⁾	22	$	3,548	16	$	1,942	7	$	2,456	2	$	185
Non-owner occupied commercial real estate	—	—		1	2,874		—	—		—	—
Owner occupied commercial real estate	1	904		3	1,962		—	—		—	—
Commercial and industrial	3	12,720		1	143		5	1,204		11	3,610
Commercial lending subsidiaries	3	2,097		—	—		—	—		—	—
	29	$	19,269	21	$	6,921	12	$	3,660	13	$	3,795