Loans Receivable, Net (Tables)

9 Months Ended

Sep. 30, 2022

Loans receivable, net at September 30, 2022 and December 31, 2021 consisted of the following (in thousands):


	September 30,		December 31,
	2022		2021
Commercial:
Commercial real estate – investor	$	5,007,637	$	4,378,061
Commercial real estate – owner occupied	983,784		1,055,065
Commercial and industrial (1)	652,620		449,224
Total commercial	6,644,041		5,882,350
Consumer:
Residential real estate	2,813,209		2,479,701

Home equity loans and lines and other consumer (“other consumer”)	261,510		260,819

Total consumer	3,074,719		2,740,520
Total loans receivable	9,718,760		8,622,870
Deferred origination costs, net of fees	7,249		9,332
Allowance for loan credit losses	(53,521)		(48,850)
Total loans receivable, net	$	9,672,488	$	8,583,352

(1) The commercial and industrial loans balance at September 30, 2022 and December 31, 2021 includes Paycheck Protection Program (“PPP”) loans of $3.0 million and $22.9 million, respectively.

Risk Category of Loans by Loan Portfolio Segment Excluding PCI Loans

The following tables summarize total loans by year of origination, internally assigned credit grades and risk characteristics (in thousands):


	2022		2021		2020		2019		2018		2017 and prior		Revolving lines of credit		Total
September 30, 2022

Commercial real estate - investor
Pass	$	936,746	$	1,354,997	$	574,752	$	507,749	$	214,473	$	948,538	$	374,043	$	4,911,298
Special Mention	—		—		193		19,021		9,303		8,628		2,188		39,333
Substandard	—		—		—		20,759		—		35,703		544		57,006
Total commercial real estate - investor	936,746		1,354,997		574,945		547,529		223,776		992,869		376,775		5,007,637
Commercial real estate - owner occupied
Pass	67,572		118,428		61,004		115,273		90,050		479,174		9,837		941,338
Special Mention	—		—		—		—		757		10,018		—		10,775
Substandard	—		—		3,750		5,730		4,860		16,231		1,100		31,671
Total commercial real estate - owner occupied	67,572		118,428		64,754		121,003		95,667		505,423		10,937		983,784
Commercial and industrial
Pass	45,285		25,101		15,232		17,468		11,921		49,371		481,519		645,897
Special Mention	—		—		—		—		—		262		1,722		1,984
Substandard	—		—		106		1,586		316		2,606		125		4,739
Total commercial and industrial	45,285		25,101		15,338		19,054		12,237		52,239		483,366		652,620


Residential real estate (1)
Pass	829,041		595,233		431,072		253,353		103,330		597,224		—		2,809,253
Special Mention	—		—		—		131		—		1,690		—		1,821
Substandard	—		—		—		—		287		1,848		—		2,135
Total residential real estate	829,041		595,233		431,072		253,484		103,617		600,762		—		2,813,209
Other consumer (1)
Pass	19,582		25,869		16,332		15,940		42,026		117,718		21,824		259,291
Special Mention	—		—		—		164		22		231		—		417
Substandard	—		—		—		—		18		1,784		—		1,802
Total other consumer	19,582		25,869		16,332		16,104		42,066		119,733		21,824		261,510

Total loans	$	1,898,226	$	2,119,628	$	1,102,441	$	957,174	$	477,363	$	2,271,026	$	892,902	$	9,718,760

(1)For residential real estate and other consumer loans, the Company evaluates credit quality based on the aging status of the loan and by payment activity.


	2021		2020		2019		2018		2017		2016 and prior		Revolving lines of credit		Total
December 31, 2021
Commercial real estate - investor
Pass	$	1,387,753	$	609,916	$	535,551	$	274,662	$	375,646	$	800,089	$	255,613	$	4,239,230
Special Mention	—		—		23,794		9,400		2,731		28,663		582		65,170
Substandard	—		4,267		28,802		468		8,495		28,228		3,401		73,661
Total commercial real estate - investor	1,387,753		614,183		588,147		284,530		386,872		856,980		259,596		4,378,061
Commercial real estate - owner occupied
Pass	116,355		71,196		125,212		91,531		109,232		449,966		10,913		974,405
Special Mention	—		—		1,365		3,829		479		14,371		2		20,046
Substandard	—		—		14,166		8,549		5,606		31,576		717		60,614
Total commercial real estate - owner occupied	116,355		71,196		140,743		103,909		115,317		495,913		11,632		1,055,065
Commercial and industrial
Pass	42,955		22,573		22,878		16,404		8,671		50,887		271,818		436,186
Special Mention	—		—		231		350		85		172		3,645		4,483
Substandard	—		457		2,281		813		198		2,029		2,777		8,555
Total commercial and industrial	42,955		23,030		25,390		17,567		8,954		53,088		278,240		449,224
Residential real estate (1)
Pass	876,135		475,134		288,699		127,756		105,385		602,331		—		2,475,440
Special Mention	—		212		—		61		—		1,313		—		1,586
Substandard	—		—		—		—		351		2,324		—		2,675
Total residential real estate	876,135		475,346		288,699		127,817		105,736		605,968		—		2,479,701
Other consumer (1)
Pass	26,512		19,168		18,179		51,954		17,955		123,783		—		257,551
Special Mention	—		—		—		—		—		322		—		322
Substandard	—		—		—		18		—		2,928		—		2,946
Total other consumer	26,512		19,168		18,179		51,972		17,955		127,033		—		260,819
Total loans	$	2,449,710	$	1,202,923	$	1,061,158	$	585,795	$	634,834	$	2,138,982	$	549,468	$	8,622,870

(1) For residential real estate and other consumer loans, the Company evaluates credit quality based on the aging status of the loan and by payment activity.

Analysis of Allowance for Loan Losses

An analysis of the allowance for credit losses on loans for the three and nine months ended September 30, 2022 and 2021 is as follows (in thousands):


	Commercial Real Estate – Investor		Commercial Real Estate – Owner Occupied		Commercial and Industrial		Residential Real Estate		Other Consumer		Total
For the three months ended September 30, 2022
Allowance for credit losses on loans
Balance at beginning of period	$	22,608	$	5,021	$	5,240	$	18,196	$	996	$	52,061
Credit loss expense (benefit)	82		(1,047)		554		1,618		1		1,208
Charge-offs	(3)		—		—		—		(2)		(5)
Recoveries	3		48		69		44		93		257
Balance at end of period	$	22,690	$	4,022	$	5,863	$	19,858	$	1,088	$	53,521
For the three months ended September 30, 2021
Allowance for credit losses on loans
Balance at beginning of period	$	33,037	$	6,350	$	4,404	$	8,818	$	1,267	$	53,876
Credit loss (benefit) expense	(9,902)		515		1,962		3,081		235		(4,109)
Charge-offs	—		(64)		(50)		(12)		(37)		(163)
Recoveries	5		26		50		292		176		549
Balance at end of period	$	23,140	$	6,827	$	6,366	$	12,179	$	1,641	$	50,153
For the nine months ended September 30, 2022
Allowance for credit losses on loans
Balance at beginning of period	$	25,504	$	5,884	$	5,039	$	11,155	$	1,268	$	48,850
Credit loss (benefit) expense	(2,865)		(2,003)		720		8,612		(128)		4,336
Charge-offs	(3)		(18)		—		(56)		(358)		(435)
Recoveries	54		159		104		147		306		770
Balance at end of period	$	22,690	$	4,022	$	5,863	$	19,858	$	1,088	$	53,521
For the nine months ended September 30, 2021
Allowance for credit losses on loans
Balance at beginning of period	$	26,703	$	15,054	$	5,390	$	11,818	$	1,770	$	60,735
Credit loss (benefit) expense	(3,336)		(8,225)		958		284		(705)		(11,024)
Charge-offs	(345)		(64)		(83)		(254)		(193)		(939)
Recoveries	118		62		101		331		769		1,381
Balance at end of period	$	23,140	$	6,827	$	6,366	$	12,179	$	1,641	$	50,153

Recorded Investment in Non-Accrual Loans by Loan Portfolio Segment Excluding PCI Loans

The following table presents the recorded investment in non-accrual loans, by loan portfolio segment as of September 30, 2022 and December 31, 2021 (in thousands):


	September 30,		December 31,
	2022		2021
Commercial real estate – investor	$	9,866	$	3,614
Commercial real estate – owner occupied	1,976		11,904
Commercial and industrial	321		277
Residential real estate	5,958		6,114
Other consumer	3,377		3,585
	$	21,498	$	25,494

Aging of Recorded Investment in Past Due Loans Excluding PCI Loans

The following table presents the aging of the recorded investment in past due loans as of September 30, 2022 and December 31, 2021 by loan portfolio segment (in thousands):


	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Loans Not Past Due		Total
September 30, 2022
Commercial real estate – investor	$	—	$	968	$	2,025	$	2,993	$	5,004,644	$	5,007,637
Commercial real estate – owner occupied	428		5,613		85		6,126		977,658		983,784
Commercial and industrial	1,472		450		—		1,922		650,698		652,620
Residential real estate	6		1,821		2,136		3,963		2,809,246		2,813,209
Other consumer	671		417		1,801		2,889		258,621		261,510
	$	2,577	$	9,269	$	6,047	$	17,893	$	9,700,867	$	9,718,760
December 31, 2021
Commercial real estate – investor	$	1,717	$	102	$	1,709	$	3,528	$	4,374,533	$	4,378,061
Commercial real estate – owner occupied	599		—		575		1,174		1,053,891		1,055,065
Commercial and industrial	25		151		277		453		448,771		449,224
Residential real estate	9,705		1,586		2,675		13,966		2,465,735		2,479,701
Other consumer	339		322		2,946		3,607		257,212		260,819
	$	12,385	$	2,161	$	8,182	$	22,728	$	8,600,142	$	8,622,870

Troubled Debt Restructurings

The following table presents information about TDR loans which occurred during the three and nine months ended September 30, 2022 and 2021 (dollars in thousands):


	Number of Loans	Pre-modification Recorded Investment		Post-modification Recorded Investment
Three months ended September 30, 2022
Troubled debt restructurings:


Other consumer	3	$	114	$	124


Three months ended September 30, 2021
Troubled debt restructurings:
Commercial real estate - owner occupied	1	$	93	$	110



Nine months ended September 30, 2022
Troubled debt restructurings:



Commercial and industrial	1	$	65	$	65
Other consumer	6	1,105		1,233
Nine months ended September 30, 2021
Troubled debt restructurings:
Commercial real estate – investor	1	$	4,903	$	4,903
Commercial real estate - owner occupied	1	93		110
Residential real estate	3	244		336
Other consumer	2	26		33