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Loans and Allowance for Loan and Lease Losses (Tables)

9 Months Ended

Sep. 30, 2019

Financing Receivable, Impaired [Line Items]

Allowance for Loan and Lease Losses Rolforward [Table Text Block]

Activity in the ALLL is summarized as follows for the periods indicated (thousands):



	Three Months Ended September 30,
	2019								2018
	Residential and Other Consumer		Commercial			Total			Residential and Other Consumer			Commercial			Total
Beginning balance	$	11,236	$	100,905		$	112,141		$	10,338		$	124,633		$	134,971
Provision	158		1,681			1,839			240			960			1,200
Charge-offs	—		(6,141		)	(6,141		)	(740		)	(12,340		)	(13,080		)
Recoveries	5		618			623			465			1,184			1,649
Ending balance	$	11,399	$	97,063		$	108,462		$	10,303		$	114,437		$	124,740



	Nine Months Ended September 30,
	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	439		8,934			9,373			334			13,008			13,342
Charge-offs	—		(13,985		)	(13,985		)	(1,244		)	(34,736		)	(35,980		)
Recoveries	172		2,971			3,143			493			2,090			2,583
Ending balance	$	11,399	$	97,063		$	108,462		$	10,303		$	114,437		$	124,740

Allowance for Credit Losses on Financing Receivables

The following table presents information about the balance of the ALLL and related loans at the dates indicated (in thousands):



	September 30, 2019						December 31, 2018
	Residential and Other Consumer		Commercial		Total		Residential and Other Consumer		Commercial		Total
Allowance for loan and lease losses:
Ending balance	$	11,399	$	97,063	$	108,462	$	10,788	$	99,143	$	109,931
Ending balance: loans individually evaluated for impairment	$	12	$	9,930	$	9,942	$	134	$	12,143	$	12,277
Ending balance: loans collectively evaluated for impairment	$	11,387	$	87,133	$	98,520	$	10,654	$	87,000	$	97,654
Ending balance: ACI loans	$	—	$	—	$	—	$	—	$	—	$	—
Loans:					0
Ending balance	$	5,571,104	$	17,284,396	$	22,855,500	$	4,948,989	$	17,028,019	$	21,977,008
Ending balance: loans individually evaluated for impairment	$	34,527	$	124,248	$	158,775	$	7,690	$	108,841	$	116,531
Ending balance: loans collectively evaluated for impairment	$	5,375,945	$	17,142,787	$	22,518,732	$	4,751,076	$	16,901,253	$	21,652,329
Ending balance: ACI loans	$	160,632	$	17,361	$	177,993	$	190,223	$	17,925	$	208,148

Concentration Risk Disclosure [Text Block]

Foreclosure of residential real estate

Financing Receivable, Past Due [Table Text Block]

The following table presents an aging of loans at the dates indicated. Amounts include premiums, discounts and deferred fees and costs (in thousands):



	September 30, 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	$	4,981,761	$	26,419	$	5,767	$	10,681	$	5,024,628	$	4,640,771	$	15,070	$	2,126	$	6,953	$	4,664,920
Government insured residential	68,703		27,055		20,449		420,475		536,682		31,348		8,342		8,871		218,168		266,729
Home equity loans and lines of credit	1,304		29		48		—		1,381		1,393		—		—		—		1,393
Other consumer loans	7,750		386		—		277		8,413		15,947		—		—		—		15,947
Multi-family	2,221,525		—		—		—		2,221,525		2,585,421		—		—		—		2,585,421
Non-owner occupied commercial real estate	4,789,562		—		—		111		4,789,673		4,611,454		—		119		—		4,611,573
Construction and land	173,345		—		—		—		173,345		209,825		691		—		—		210,516
Owner occupied commercial real estate	1,935,843		312		—		361		1,936,516		2,004,781		2,326		276		220		2,007,603
Commercial and industrial	4,473,727		1,318		1,059		958		4,477,062		4,297,911		6,373		175		7,754		4,312,213
National commercial lending platforms
Pinnacle	1,236,121		—		—		—		1,236,121		1,462,655		—		—		—		1,462,655
Bridge - franchise finance	597,946		—		5,601		2,349		605,896		516,077		—		—		1,228		517,305
Bridge - equipment finance	682,149		—		—		—		682,149		636,235		603		—		—		636,838
Small business finance ⁽¹⁾	220,407		642		2,162		33,279		256,490		230,708		4,705		2,817		13,991		252,221
Mortgage warehouse lending	905,619		—		—		—		905,619		431,674		—		—		—		431,674
	$	22,295,762	$	56,161	$	35,086	$	468,491	$	22,855,500	$	21,676,200	$	38,110	$	14,384	$	248,314	$	21,977,008

Schedule of Loans Categorized

oans consisted of the following at the dates indicated (dollars in thousands):



	September 30, 2019					December 31, 2018
	Total			Percent of Total		Total			Percent of Total
Residential and other consumer:
1-4 single family residential	$	5,024,628		22.0	%	$	4,664,920		21.2	%
Government insured residential	536,682			2.3	%	266,729			1.2	%
Other consumer loans	9,794			0.1	%	17,340			0.1	%
	5,571,104			24.4	%	4,948,989			22.5	%
Commercial:
Multi-family	2,221,525			9.7	%	2,585,421			11.8	%
Non-owner occupied commercial real estate	4,789,673			21.0	%	4,611,573			21.0	%
Construction and land	173,345			0.8	%	210,516			1.0	%
Owner occupied commercial real estate	1,936,516			8.5	%	2,007,603			9.1	%
Commercial and industrial	4,477,062			19.6	%	4,312,213			19.6	%
National commercial lending platforms:
Pinnacle	1,236,121			5.3	%	1,462,655			6.6	%
Bridge - franchise finance	605,896			2.6	%	517,305			2.4	%
Bridge - equipment finance	682,149			3.0	%	636,838			2.9	%
Small business finance	256,490			1.1	%	252,221			1.1	%
Mortgage warehouse lending	905,619			4.0	%	431,674			2.0	%
	17,284,396			75.6	%	17,028,019			77.4	%
Total loans	22,855,500			100.0	%	21,977,008			100.0	%
Allowance for loan and lease losses	(108,462		)			(109,931		)
Loans, net	$	22,747,038				$	21,867,077

Premiums, discounts and deferred fees and costs totaled $52 million and $44 million at September 30, 2019 and December 31, 2018, respectively.

During the three and nine months ended September 30, 2019 and 2018, the Company purchased 1-4 single family residential loans totaling $743 million, $1.6 billion, $310 million and $914 million, respectively. Purchases for the three and nine months ended September 30, 2019 and 2018 included $288 million, $572 million, $90 million and $201 million, respectively, of government insured residential loans.

At September 30, 2019, the Company had pledged loans with a carrying value of approximately $10.4 billion as security for FHLB advances and Federal Reserve discount window borrowings.

The following presents the Company's recorded investment in ACI loans, included in the table above, as of the dates indicated (in thousands):



	September 30, 2019		December 31, 2018
Residential	$	160,632	$	190,223
Commercial	17,361		17,925
	$	177,993	$	208,148

Accretable Yield Rollfoward [Table Text Block]

At September 30, 2019 and December 31, 2018, the UPB of ACI loans was $343 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 nine months ended September 30, 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 to non-accretable difference, net	(702		)
Accretion	(49,065		)
Other changes, net ⁽¹⁾	(12,034		)
Balance at September 30, 2019	$	230,046

(1)

Represents changes in cash flows expected to be collected due to the impact of changes in prepayment assumptions or changes in benchmark interest rates.

Impaired Financing Receivables

The table below presents information about loans identified as impaired at the dates indicated (in thousands):



	September 30, 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	$	127	$	127	$	—	$	2,204	$	2,170	$	—
Government insured residential	29,853		29,772		—		3,520		3,436		—
Multi-family	17,906		17,935		—		25,560		25,592		—
Non-owner occupied commercial real estate	11,790		11,779		—		1,317		1,323		—
Construction and land	3,839		3,841		—		8,827		8,830		—
Owner occupied commercial real estate	3,358		3,365		—		398		399		—
Commercial and industrial	3,500		3,504		—		11,968		11,973		—
Bridge - franchise finance	3,902		3,907		—		3,152		3,149		—
Small business finance ⁽¹⁾	34,512		34,700		—		22,227		22,152		—
With a specific allowance recorded:
1-4 single family residential	4,547		4,476		—		1,966		1,941		134
Non-owner occupied commercial real estate	—		—		—		1,666		1,667		731
Owner occupied commercial real estate	—		—		—		3,316		3,322		844
Commercial and industrial	23,143		23,119		5,948		10,939		10,946		3,831
Bridge - franchise finance	13,174		13,211		1,275		2,047		2,046		1,427
Bridge - equipment finance	9,124		9,047		2,707		17,424		17,339		5,310
Total:
Residential and other consumer	$	34,527	$	34,375	$	12	$	7,690	$	7,547	$	134
Commercial	124,248		124,408		9,930		108,841		108,738		12,143
	$	158,775	$	158,783	$	9,942	$	116,531	$	116,285	$	12,277


(1)	Includes the guaranteed portion of impaired SBA loans totaling $31.2 million and $13.1 million at September 30, 2019 and December 31, 2018, respectively.

Interest income recognized on impaired loans was immaterial for the three and nine months ended September 30, 2019 and 2018.

The following table presents the average recorded investment in impaired loans for the periods indicated (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Residential and other consumer:
1-4 single family residential	$	4,685	$	6,097	$	4,639	$	5,415
Government insured residential	19,865		1,554		10,885		977
	24,550		7,651		15,524		6,392

Commercial:
Multi-family	21,370		26,041		23,955		25,674
Non-owner occupied commercial real estate	11,938		2,849		10,628		2,144
Construction and land	6,188		6,631		7,854		4,225
Owner occupied commercial real estate	3,406		3,838		3,526		8,720
Commercial and industrial ⁽¹⁾	27,297		104,939		27,879		107,862
National commercial lending platforms
Bridge - franchise finance	10,879		2,672		6,559		1,095
Bridge - equipment finance	9,732		9,890		13,632		4,303
Small business finance	32,875		23,952		26,669		22,196
	123,685		180,812		120,702		176,219
	$	148,235	$	188,463	$	136,226	$	182,611


(1)	Includes average recorded investment in taxi medallion loans totaling $84 million and $93 million during the three and nine months ended September 30, 2018, respectively.

Schedule of Recorded Investment in Loans, Other than ACI Loans, on Non-Accrual Status

The following table presents the recorded investment in loans on non-accrual status as of the dates indicated (in thousands):



	September 30, 2019		December 31, 2018
Residential and other consumer:
1-4 single family residential	$	15,363	$	6,316
Other consumer loans	325		288
	15,688		6,604
Commercial:
Multi-family	17,906		25,560
Non-owner occupied commercial real estate	11,902		3,102
Construction and land	3,839		8,827
Owner occupied commercial real estate	6,043		5,221
Commercial and industrial	22,092		23,088
National commercial lending platforms
Bridge - franchise finance	5,275		5,308
Bridge - equipment finance	9,133		17,425
Small business finance ⁽¹⁾	45,767		34,108
	121,957		122,639
	$	137,645	$	129,243


(1)	Includes the guaranteed portion of non-accrual SBA loans totaling $33.1 million and $17.8 million at September 30, 2019 and December 31, 2018, respectively.

Financing Receivable Credit Quality Indicators

The following tables summarize key indicators of credit quality for the Company's loans at the dates indicated. Amounts include premiums, discounts and deferred fees and costs (in thousands):

1-4 Single Family Residential credit exposure for loans, excluding FSB loans, based on original LTV and FICO score:



	September 30, 2019
	FICO
LTV	720 or less		721 - 740		741 - 760		761 or greater		Total
Less than 60%	$	114,847	$	134,444	$	187,415	$	806,492	$	1,243,198
60% - 70%	138,248		120,618		194,154		662,916		1,115,936
70% - 80%	194,742		238,208		424,120		1,410,608		2,267,678
More than 80%	19,750		32,265		33,748		141,652		227,415
	$	467,587	$	525,535	$	839,437	$	3,021,668	$	4,854,227



	December 31, 2018
	FICO
LTV	720 or less		721 - 740		741 - 760		761 or greater		Total
Less than 60%	$	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

Commercial credit exposure, based on internal risk rating:



	September 30, 2019
											National Commercial Lending Platforms
	Multi-Family		Non-Owner Occupied Commercial Real Estate		Construction and Land		Owner Occupied Commercial Real Estate		Commercial and Industrial		Pinnacle		Bridge - Franchise Finance		Bridge - Equipment Finance		Small Business Finance		Mortgage Warehouse Lending		Total
Pass	$	2,181,847	$	4,718,776	$	169,507	$	1,904,344	$	4,341,662	$	1,236,121	$	535,646	$	660,341	$	192,511	$	905,619	$	16,846,374
Special mention	—		5,253		—		11,359		47,678		—		13,189		—		9,363		—		86,842
Substandard	39,678		65,644		3,838		20,813		87,631		—		57,061		19,101		54,616		—		348,382
Doubtful	—		—		—		—		91		—		—		2,707		—		—		2,798
	$	2,221,525	$	4,789,673	$	173,345	$	1,936,516	$	4,477,062	$	1,236,121	$	605,896	$	682,149	$	256,490	$	905,619	$	17,284,396



	December 31, 2018
											National Commercial Lending Platforms
	Multi-Family		Non-Owner Occupied Commercial Real Estate		Construction and Land		Owner Occupied Commercial Real Estate		Commercial and Industrial		Pinnacle		Bridge - Franchise Finance		Bridge - Equipment Finance		Small Business Finance		Mortgage Warehouse Lending		Total
Pass	$	2,547,835	$	4,550,422	$	201,689	$	1,993,067	$	4,248,038	$	1,462,655	$	492,853	$	612,968	$	197,819	$	421,188	$	16,728,534
Special mention	2,932		14,301		—		3,789		25,883		—		9,232		925		13,522		10,486		81,070
Substandard	34,654		46,850		8,827		10,747		36,546		—		15,220		16,302		40,880		—		210,026
Doubtful	—		—		—		—		1,746		—		—		6,643		—		—		8,389
	$	2,585,421	$	4,611,573	$	210,516	$	2,007,603	$	4,312,213	$	1,462,655	$	517,305	$	636,838	$	252,221	$	431,674	$	17,028,019

Financing Receivable, Troubled Debt Restructuring [Table Text Block]

The following tables summarize loans that were modified in TDRs during the periods indicated, as well as loans modified during the twelve months preceding September 30, 2019 and 2018 that experienced payment defaults during the periods indicated (dollars in thousands):



	Three Months Ended September 30,
	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	—	$	—	—	$	—	—	$	—	2	$	139
Government insured residential	133	21,421		56	8,461		11	956		2	172
Non-owner occupied commercial real estate	—	—		—	—		2	3,037		—	—
Commercial and industrial	1	4,421		1	395		3	4,170		1	215
National commercial lending platforms
Bridge - franchise finance	1	12,850		—	—		—	—		—	—
Small business finance	2	963		4	2,911		—	—		—	—
	137	$	39,655	61	$	11,767	16	$	8,163	5	$	526



	Nine Months Ended September 30,
	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	2	$	560	—	$	—	10	$	3,686	2	$	139
Government insured residential	171	26,992		58	8,687		14	1,300		3	272
Non-owner occupied commercial real estate	1	11,791		—	—		2	3,037		—	—
Commercial and industrial	6	21,144		1	395		9	5,371		1	215
National commercial lending platforms
Bridge - franchise finance	4	15,715		—	—		—	—		—	—
Small business finance	2	962		6	5,872		1	164		—	—
	186	$	77,164	65	$	14,954	36	$	13,558	6	$	626