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Loans Held for Investment (Tables)
 6 Months Ended
Jun. 30, 2022
Receivables [Abstract]  
Schedule of components of loans held for investment
The following table presents the composition of the loan portfolio for the periods indicated:
June 30,December 31,
(Dollars in thousands)20222021
Investor loans secured by real estate
CRE non-owner-occupied$2,788,715 $2,771,137 
Multifamily6,188,086 5,891,934 
Construction and land331,734 277,640 
SBA secured by real estate44,199 46,917 
Total investor loans secured by real estate9,352,734 8,987,628 
Business loans secured by real estate
CRE owner-occupied2,486,747 2,251,014 
Franchise real estate secured387,683 380,381 
SBA secured by real estate67,191 69,184 
Total business loans secured by real estate2,941,621 2,700,579 
Commercial loans
Commercial and industrial2,295,421 2,103,112 
Franchise non-real estate secured415,830 392,576 
SBA non-real estate secured11,008 11,045 
Total commercial loans2,722,259 2,506,733 
Retail loans
Single family residential77,951 95,292 
Consumer4,130 5,665 
Total retail loans82,081 100,957 
Loans held for investment before basis adjustment (1)
15,098,695 14,295,897 
Basis adjustment associated with fair value hedge (2)
(51,087)— 
Loans held for investment15,047,608 14,295,897 
Allowance for credit losses for loans held for investment(196,075)(197,752)
Loans held for investment, net$14,851,533 $14,098,145 
Total unfunded loan commitments$2,872,934 $2,507,911 
Loans held for sale, at lower of cost or fair value2,957 10,869 
______________________________
(1) Includes net deferred origination fees of $3.1 million and $3.5 million, and unaccreted fair value net purchase discounts of $63.6 million and $77.1 million as of June 30, 2022 and December 31, 2021, respectively.
(2) Represents the basis adjustment associated with the application of hedge accounting on certain loans. Refer to Note 11 – Derivative Instruments for additional information.
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 June 30, 2022:
Term Loans by Vintage
(Dollars in thousands)20222021202020192018PriorRevolvingRevolving Converted to Term During the PeriodTotal
June 30, 2022
Investor loans secured by real estate
CRE non-owner-occupied
Pass$407,555 $647,131 $229,618 $370,339 $331,235 $754,385 $5,333 $— $2,745,596 
Special mention— — — — 7,585 6,359 — — 13,944 
Substandard— — — 25,773 — 2,914 — 488 29,175 
Multifamily
Pass1,012,086 2,245,091 809,115 976,171 314,160 821,575 261 — 6,178,459 
Substandard— 6,074 — 2,799 — 754 — — 9,627 
Construction and land
Pass95,161 152,872 44,555 26,790 5,063 7,293 — — 331,734 
SBA secured by real estate
Pass6,616 130 495 5,476 7,653 15,870 — — 36,240 
Substandard— — — — 2,432 5,527 — — 7,959 
Total investor loans secured by real estate1,521,418 3,051,298 1,083,783 1,407,348 668,128 1,614,677 5,594 488 9,352,734 
Business loans secured by real estate
CRE owner-occupied
Pass506,736 760,398 255,275 255,040 131,615 551,125 4,720 — 2,464,909 
Substandard— — 4,655 2,479 4,761 9,943 — — 21,838 
Franchise real estate secured
Pass43,571 152,200 35,617 53,647 34,819 67,829 — — 387,683 
SBA secured by real estate
Pass8,493 7,265 2,342 6,507 5,214 30,616 — — 60,437 
Substandard— — — — 1,377 5,377 — — 6,754 
Total loans secured by business real estate558,800 919,863 297,889 317,673 177,786 664,890 4,720 — 2,941,621 
Commercial loans
Commercial and industrial
Pass194,470 361,430 65,403 170,883 100,744 152,008 1,232,369 2,801 2,280,108 
Special mention— — 323 — — — 530 — 853 
Substandard893 2,122 — 3,527 674 1,687 5,557 — 14,460 
Franchise non-real estate secured
Pass74,199 152,765 22,624 72,220 37,442 41,084 780 — 401,114 
Substandard— — — — 2,151 12,565 — — 14,716 
SBA non-real estate secured
Pass1,952 453 522 1,817 732 3,955 — — 9,431 
Substandard— — — 137 237 579 — 624 1,577 
Total commercial loans271,514 516,770 88,872 248,584 141,980 211,878 1,239,236 3,425 2,722,259 
Term Loans by Vintage
(Dollars in thousands)20222021202020192018PriorRevolvingRevolving Converted to Term During the PeriodTotal
June 30, 2022
Retail loans
Single family residential
Pass$— $306 $181 $— $29 $52,537 $24,854 $— $77,907 
Substandard— — — — — 44 — — 44 
Consumer loans
Pass— 9 22 27 9 1,173 2,887 — 4,127 
Substandard— — — 3 — — — — 3 
Total retail loans— 315 203 30 38 53,754 27,741 — 82,081 
Loans held for investment before basis adjustment (1)
$2,351,732 $4,488,246 $1,470,747 $1,973,635 $987,932 $2,545,199 $1,277,291 $3,913 $15,098,695 
______________________________
(1) Excludes the basis adjustment of $51.1 million to the carrying amount of certain loans included in fair value hedging relationships. Refer to Note 11 – Derivative Instruments for additional information.

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, 2021:
Term Loans by Vintage
(Dollars in thousands)20212020201920182017PriorRevolvingRevolving Converted to Term During the PeriodTotal
December 31, 2021
Investor loans secured by real estate
CRE non-owner-occupied
Pass$708,560 $269,944 $393,097 $387,923 $218,388 $730,736 $9,353 $— $2,718,001 
Special mention— — 16,166 7,682 — — — — 23,848 
Substandard— — 25,777 — — 2,998 513 — 29,288 
Multifamily
Pass2,260,708 952,127 1,199,505 444,904 479,029 554,067 286 — 5,890,626 
Substandard— — — 543 — 765 — — 1,308 
Construction and land
Pass119,532 97,721 40,556 12,415 3,857 3,559 — — 277,640 
SBA secured by real estate
Pass130 497 6,259 9,074 12,070 9,198 — — 37,228 
Special mention— — — 957 — 544 — — 1,501 
Substandard— — — 2,343 3,679 2,166 — — 8,188 
Total investor loans secured by real estate3,088,930 1,320,289 1,681,360 865,841 717,023 1,304,033 10,152 — 8,987,628 
Term Loans by Vintage
(Dollars in thousands)20212020201920182017PriorRevolvingRevolving Converted to Term During the PeriodTotal
December 31, 2021
Business loans secured by real estate
CRE owner-occupied
Pass$853,044 $273,469 $287,249 $161,636 $187,130 $464,271 $6,738 $292 $2,233,829 
Substandard— — 2,553 6,074 2,966 5,592 — — 17,185 
Franchise real estate secured
Pass156,381 36,335 55,091 40,047 56,288 34,878 1,361 — 380,381 
SBA secured by real estate
Pass6,379 2,364 7,331 9,125 10,734 24,627 — — 60,560 
Special mention— — — — — 62 — — 62 
Substandard— — — 2,062 2,690 3,810 — — 8,562 
Total loans secured by business real estate1,015,804 312,168 352,224 218,944 259,808 533,240 8,099 292 2,700,579 
Commercial loans
Commercial and industrial
Pass425,683 79,635 200,234 117,471 123,345 70,789 1,032,053 3,371 2,052,581 
Special mention— — 146 — — 152 14,814 178 15,290 
Substandard1,772 — 14 2,683 863 1,150 27,684 1,075 35,241 
Franchise non-real estate secured
Pass163,865 23,943 85,206 45,061 23,672 31,163 — — 372,910 
Substandard— — 1,589 3,627 13,346 1,104 — — 19,666 
SBA non-real estate secured
Pass474 564 1,292 666 2,806 2,148 — — 7,950 
Special mention— — 681 114 — — — — 795 
Substandard— — 76 339 685 547 653 — 2,300 
Total commercial loans591,794 104,142 289,238 169,961 164,717 107,053 1,075,204 4,624 2,506,733 
Retail loans
Single family residential
Pass313 211 — 32 2,008 68,759 23,920 — 95,243 
Substandard— — — — — 49 — — 49 
Consumer loans
Pass11 28 49 19 11 1,394 4,113 — 5,625 
Substandard— — 5 — — 35 — — 40 
Total retail loans324 239 54 51 2,019 70,237 28,033 — 100,957 
Loans held for investment$4,696,852 $1,736,838 $2,322,876 $1,254,797 $1,143,567 $2,014,563 $1,121,488 $4,916 $14,295,897 
Schedule of delinquencies in the company's loan portfolio
The following tables stratify loans held for investment by delinquencies in the Company’s loan portfolio at the dates indicated:
Days Past Due
(Dollars in thousands)Current30-5960-8990+Total
June 30, 2022
Investor loans secured by real estate
CRE non-owner-occupied$2,772,126 $6,359 $— $10,230 $2,788,715 
Multifamily6,179,213 — — 8,873 6,188,086 
Construction and land331,734 — — — 331,734 
SBA secured by real estate44,199 — — — 44,199 
Total investor loans secured by real estate9,327,272 6,359 — 19,103 9,352,734 
Business loans secured by real estate
CRE owner-occupied2,481,858 — — 4,889 2,486,747 
Franchise real estate secured387,683 — — — 387,683 
SBA secured by real estate67,108 83 — — 67,191 
Total business loans secured by real estate2,936,649 83 — 4,889 2,941,621 
Commercial loans
Commercial and industrial2,290,204 473 — 4,744 2,295,421 
Franchise non-real estate secured415,830 — — — 415,830 
SBA not secured by real estate10,384 — — 624 11,008 
Total commercial loans2,716,418 473 — 5,368 2,722,259 
Retail loans
Single family residential77,951 — — — 77,951 
Consumer loans4,130 — — — 4,130 
Total retail loans82,081 — — — 82,081 
Loans held for investment before basis adjustment (1)
$15,062,420 $6,915 $— $29,360 $15,098,695 

December 31, 2021
Investor loans secured by real estate
CRE non-owner-occupied$2,760,882 $— $— $10,255 $2,771,137 
Multifamily5,890,704 1,230 — — 5,891,934 
Construction and land277,640 — — — 277,640 
SBA secured by real estate46,580 — — 337 46,917 
Total investor loans secured by real estate8,975,806 1,230 — 10,592 8,987,628 
Business loans secured by real estate
CRE owner-occupied2,246,062 — — 4,952 2,251,014 
Franchise real estate secured380,381 — — — 380,381 
SBA secured by real estate68,743 — — 441 69,184 
Total business loans secured by real estate2,695,186 — — 5,393 2,700,579 
Commercial loans
Commercial and industrial2,101,558 92 — 1,462 2,103,112 
Franchise non-real estate secured392,576 — — — 392,576 
SBA not secured by real estate10,319 73 — 653 11,045 
Total commercial loans2,504,453 165 — 2,115 2,506,733 
Retail loans
Single family residential95,292 — — — 95,292 
Consumer loans5,665 — — — 5,665 
Total retail loans100,957 — — — 100,957 
Loans held for investment $14,276,402 $1,395 $— $18,100 $14,295,897 
______________________________
(1) Excludes the basis adjustment of $51.1 million to the carrying amount of certain loans included in fair value hedging relationships. Refer to Note 11 – Derivative Instruments for additional information.
Summary of nonaccrual loans
The following tables provide a summary of nonaccrual loans as of the dates indicated:
Nonaccrual Loans (1)
(Dollars in thousands)Collateral Dependent LoansACLNon-Collateral Dependent LoansACLTotal Nonaccrual LoansNonaccrual Loans with No ACL
June 30, 2022
Investor loans secured by real estate
CRE non-owner-occupied$10,230 $1,835 $— $— $10,230 $2,615 
Multifamily8,873 — — — 8,873 8,873 
SBA secured by real estate562 — — — 562 562 
Total investor loans secured by real estate19,665 1,835 — — 19,665 12,050 
Business loans secured by real estate
CRE owner-occupied4,889 — — — 4,889 4,889 
SBA secured by real estate206 — — — 206 206 
Total business loans secured by real estate5,095 — — — 5,095 5,095 
Commercial loans
Commercial and industrial4,744 — — — 4,744 4,744 
Franchise non-real estate secured2,794 — 11,517 — 14,311 14,311 
SBA non-real estate secured624 — — — 624 624 
Total commercial loans8,162 — 11,517 — 19,679 19,679 
Retail loans
Single family residential6 — — — 6 6 
Total retail loans6 — — — 6 6 
Total nonaccrual loans$32,928 $1,835 $11,517 $— $44,445 $36,830 

December 31, 2021
Investor loans secured by real estate
CRE non-owner-occupied$10,255 $1,455 $— $— $10,255 $2,640 
SBA secured by real estate937 — — — 937 937 
Total investor loans secured by real estate11,192 1,455 — — 11,192 3,577 
Business loans secured by real estate
CRE owner-occupied4,952 — — — 4,952 4,952 
SBA secured by real estate589 — — — 589 589 
Total business loans secured by real estate5,541 — — — 5,541 5,541 
Commercial loans
Commercial and industrial1,462 — 336 — 1,798 1,797 
Franchise non-real estate secured— — 12,079 — 12,079 12,079 
SBA non-real estate secured653 — — — 653 653 
Total commercial loans2,115 — 12,415 — 14,530 14,529 
Retail loans
Single family residential10 — — — 10 10 
Total retail loans10 — — — 10 10 
Total nonaccrual loans$18,858 $1,455 $12,415 $— $31,273 $23,657 
______________________________
(1) The ACL for nonaccrual loans is determined based on a discounted cash flow methodology unless the loan is considered collateral dependent; otherwise, the ACL for collateral dependent nonaccrual loans is determined based on the estimated fair value of the underlying collateral.
Schedule of collateral dependent loans by collateral type
The following tables summarize collateral dependent loans by collateral type as of the dates indicated:
(Dollars in thousands)Office PropertiesIndustrial PropertiesRetail PropertiesLand PropertiesHotel PropertiesMultifamily PropertiesResidential PropertiesBusiness AssetsTotal
June 30, 2022
Investor loan secured by real estate
CRE non-owner-occupied$— $— $488 $— $9,742 $— $— $— $10,230 
Multifamily— — — — — 8,873 — — 8,873 
SBA secured by real estate— — — — 562 — — — 562 
Total investor loans secured by real estate— — 488 — 10,304 8,873 — — 19,665 
Business loans secured by real estate
CRE owner-occupied— — — 4,889 — — — — 4,889 
SBA secured by real estate123 83 — — — — — — 206 
Total business loans secured by real estate123 83 — 4,889 — — — — 5,095 
Commercial loans
Commercial and industrial— — — 242 — — — 4,502 4,744 
Franchise non-real estate secured— — — — — — — 2,794 2,794 
SBA non-real estate secured— — — — — — — 624 624 
Total commercial loans— — — 242 — — — 7,920 8,162 
Retail loans
Single family residential— — — — — — 6 — 6 
Total retail loans— — — — — — 6 — 6 
Total collateral dependent loans$123 $83 $488 $5,131 $10,304 $8,873 $6 $7,920 $32,928 
(Dollars in thousands)Office PropertiesIndustrial PropertiesRetail PropertiesLand PropertiesHotel PropertiesResidential PropertiesBusiness AssetsTotal
December 31, 2021
Investor loan secured by real estate
CRE non-owner-occupied$— $— $513 $— $9,742 $— $— $10,255 
SBA secured by real estate— — — — 937 — — 937 
Total investor loans secured by real estate— — 513 — 10,679 — — 11,192 
Business loans secured by real estate
CRE owner-occupied— — — 4,952 — — — 4,952 
SBA secured by real estate148 441 — — — — — 589 
Total business loans secured by real estate148 441 — 4,952 — — — 5,541 
Commercial loans
Commercial and industrial— — — 245 — — 1,217 1,462 
SBA non-real estate secured— — — — — — 653 653 
Total commercial loans— — — 245 — — 1,870 2,115 
Retail loans
Single family residential— — — — — 10 — 10 
Total retail loans— — — — — 10 — 10 
Total collateral dependent loans$148 $441 $513 $5,197 $10,679 $10 $1,870 $18,858