Loans Receivable, Net (Tables)

3 Months Ended

Mar. 31, 2024

Loans receivable, net at March 31, 2024 and December 31, 2023 consisted of the following (in thousands):


	March 31,		December 31,
	2024		2023
Commercial:
Commercial real estate – investor	$	5,322,755	$	5,353,974
Commercial real estate – owner occupied	914,582		943,891
Commercial and industrial	677,176		666,532
Total commercial	6,914,513		6,964,397
Consumer:
Residential real estate	2,965,276		2,979,534

Home equity loans and lines and other consumer (“other consumer”)	245,859		250,664

Total consumer	3,211,135		3,230,198
Total loans receivable	10,125,648		10,194,595
Deferred origination costs, net of fees	9,734		9,263
Allowance for loan credit losses	(67,173)		(67,137)
Total loans receivable, net	$	10,068,209	$	10,136,721

Schedule of Total Loans by Year of Origination, Internally Assigned Credit Grades and Risk Characteristics

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


	2024		2023		2022		2021		2020		2019 and prior		Revolving lines of credit		Total
March 31, 2024

Commercial real estate - investor
Pass	$	48,428	$	136,697	$	1,170,068	$	1,327,264	$	525,806	$	1,352,769	$	644,938	$	5,205,970
Special Mention	—		—		—		2,389		—		42,787		12,695		57,871
Substandard	—		—		—		595		4,535		53,784		—		58,914
Total commercial real estate - investor	48,428		136,697		1,170,068		1,330,248		530,341		1,449,340		657,633		5,322,755
Commercial real estate - owner occupied
Pass	12,333		65,173		116,684		98,566		57,582		513,115		23,133		886,586
Special Mention	—		—		—		—		—		8,705		—		8,705
Substandard	—		—		—		—		—		18,672		619		19,291
Total commercial real estate - owner occupied	12,333		65,173		116,684		98,566		57,582		540,492		23,752		914,582
Commercial and industrial
Pass	12,487		122,952		65,864		18,212		7,671		55,600		377,278		660,064
Special Mention	—		—		—		—		—		170		2,239		2,409
Substandard	—		—		589		69		—		1,217		12,828		14,703
Total commercial and industrial	12,487		122,952		66,453		18,281		7,671		56,987		392,345		677,176


Residential real estate (1)
Pass	43,812		279,313		904,132		555,218		378,827		800,232		—		2,961,534
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		869		—		220		732		1,921		—		3,742
Total residential real estate	43,812		280,182		904,132		555,438		379,559		802,153		—		2,965,276
Other consumer (1)
Pass	5,247		31,232		19,401		20,089		12,440		126,222		29,339		243,970
Special Mention	—		—		—		—		—		298		—		298
Substandard	—		—		—		—		—		1,591		—		1,591
Total other consumer	5,247		31,232		19,401		20,089		12,440		128,111		29,339		245,859

Total loans	$	122,307	$	636,236	$	2,276,738	$	2,022,622	$	987,593	$	2,977,083	$	1,103,069	$	10,125,648

(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.


	2023		2022		2021		2020		2019		2018 and prior		Revolving lines of credit		Total
December 31, 2023
Commercial real estate - investor
Pass	$	137,028	$	1,165,955	$	1,328,012	$	529,745	$	490,438	$	930,337	$	679,804	$	5,261,319
Special Mention	—		—		2,413		790		1,446		22,147		—		26,796
Substandard	—		—		648		3,750		13,275		48,186		—		65,859
Total commercial real estate - investor	137,028		1,165,955		1,331,073		534,285		505,159		1,000,670		679,804		5,353,974
Commercial real estate - owner occupied
Pass	66,642		120,280		103,104		59,179		102,703		441,713		21,052		914,673
Special Mention	—		—		—		—		1,272		8,314		—		9,586
Substandard	—		—		—		—		2,019		16,900		713		19,632
Total commercial real estate - owner occupied	66,642		120,280		103,104		59,179		105,994		466,927		21,765		943,891
Commercial and industrial
Pass	112,914		64,770		19,473		8,645		7,778		51,082		383,013		647,675
Special Mention	—		—		—		—		—		184		2,859		3,043
Substandard	—		622		117		—		145		1,385		13,545		15,814
Total commercial and industrial	112,914		65,392		19,590		8,645		7,923		52,651		399,417		666,532
Residential real estate (1)
Pass	283,296		916,153		564,515		388,392		223,247		600,118		—		2,975,721
Special Mention	—		—		—		—		131		271		—		402
Substandard	323		366		—		258		487		1,977		—		3,411
Total residential real estate	283,619		916,519		564,515		388,650		223,865		602,366		—		2,979,534
Other consumer (1)
Pass	32,859		19,918		20,737		12,675		12,937		118,486		30,658		248,270
Special Mention	—		172		—		—		—		386		—		558
Substandard	—		—		—		—		6		1,698		132		1,836
Total other consumer	32,859		20,090		20,737		12,675		12,943		120,570		30,790		250,664
Total loans	$	633,062	$	2,288,236	$	2,039,019	$	1,003,434	$	855,884	$	2,243,184	$	1,131,776	$	10,194,595

(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.

Schedule of Analysis of Allowance for Credit Losses on Loans

An analysis of the allowance for credit losses on loans for the three months ended March 31, 2024 and 2023 was 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 March 31, 2024
Allowance for credit losses on loans
Balance at beginning of period	$	27,899	$	4,354	$	6,867	$	27,029	$	988	$	67,137
(Benefit) provision for credit losses	(865)		(107)		769		9		579		385
Charge-offs (1)	(46)		—		—		—		(395)		(441)
Recoveries	2		4		5		66		15		92
Balance at end of period	$	26,990	$	4,251	$	7,641	$	27,104	$	1,187	$	67,173
For the three months ended March 31, 2023
Allowance for credit losses on loans
Balance at beginning of period	$	21,070	$	4,423	$	5,695	$	24,530	$	1,106	$	56,824
Provision (benefit) for credit losses	1,379		(304)		131		2,390		(272)		3,324
Charge-offs (1)	—		(6)		(3)		—		(1)		(10)
Recoveries	2		3		4		8		40		57
Balance at end of period	$	22,451	$	4,116	$	5,827	$	26,928	$	873	$	60,195

(1) Gross charge-offs for the three months ended March 31, 2024 of $441,000 included one commercial real estate loan of $46,000, which was originated in 2021. The remainder of the charge-offs were related to loans that were originated prior to 2019. Gross charge-offs for the three months ended March 31, 2023 of $10,000 related to loans that were originated prior to 2018.

Schedule of Recorded Investment in Non-Accrual Loans, by Loan Portfolio Segment

The following table presents the recorded investment in non-accrual loans, by loan portfolio segment as of March 31, 2024 and December 31, 2023 (in thousands):


	March 31,		December 31,
	2024		2023
Commercial real estate – investor (1)	$	21,507	$	20,820
Commercial real estate – owner occupied	3,355		351
Commercial and industrial	567		304
Residential real estate	7,181		5,542
Other consumer	2,401		2,531
	$	35,011	$	29,548

(1) At March 31, 2024 and December 31, 2023, non-performing loans included the remaining exposure of $8.8 million on a commercial real estate relationship that was partially charged-off during the year ended December 31, 2023.

Schedule of Aging of Recorded Investment in Past Due Loans by Loan Portfolio Segment

The following table presents the aging of the recorded investment in past due loans as of March 31, 2024 and December 31, 2023 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
March 31, 2024
Commercial real estate – investor (1)	$	4,746	$	—	$	16,004	$	20,750	$	5,302,005	$	5,322,755
Commercial real estate – owner occupied	531		368		318		1,217		913,365		914,582
Commercial and industrial	3		—		567		570		676,606		677,176
Residential real estate	10,793		—		3,742		14,535		2,950,741		2,965,276
Other consumer	795		298		1,591		2,684		243,175		245,859
	$	16,868	$	666	$	22,222	$	39,756	$	10,085,892	$	10,125,648
December 31, 2023
Commercial real estate – investor (1)	$	978	$	684	$	15,201	$	16,863	$	5,337,111	$	5,353,974
Commercial real estate – owner occupied	335		352		293		980		942,911		943,891
Commercial and industrial	163		—		145		308		666,224		666,532
Residential real estate	14,858		402		3,411		18,671		2,960,863		2,979,534
Other consumer	872		558		1,836		3,266		247,398		250,664
	$	17,206	$	1,996	$	20,886	$	40,088	$	10,154,507	$	10,194,595

(1) At March 31, 2024 and December 31, 2023, 90 days or greater past due loans included the remaining exposure of $8.8 million on a commercial real estate relationship that was partially charged-off during the year ended December 31, 2023.

Schedule of Modified and Troubled Debt Restructuring Loans

The following table presents loans modifications made to borrowers experiencing financial difficulty during the three months ended March 31, 2024 and 2023 (in thousands):


	Term Extension		Combination of Term Extension and Interest Rate Reduction		Other Than Insignificant Payment Delay		Total		% of Total by Loan Portfolio Segment
For the three months ended March 31, 2024

Commercial real estate – owner occupied	$	—	$	—	$	2,994	$	2,994	0.33	%

Residential real estate	129		—		—		129		—
Other consumer	—		148		—		148		0.06
	$	129	$	148	$	2,994	$	3,271	—	%
For the three months ended March 31, 2023



Residential real estate	$	435	$	—	$	—	$	435	0.02	%
Other consumer	40		—		—		40		0.02
	$	475	$	—	$	—	$	475	—	%

The following table provides the performance of loans modified to borrowers experiencing financial difficulty during the twelve months ended March 31, 2024 and since adoption of the standard for March 31, 2023 (in thousands):



	Current		60 - 89 Days past due		90 Days or Greater past due			Total
March 31, 2024
Commercial real estate – investor	$	7,758	$	—	$	—		$	7,758
Commercial real estate – owner occupied	2,994		—		—			2,994

Residential real estate	258		—		153		(1)	411
Other consumer	419		—		—			419
	$	11,429	$	—	$	153		$	11,582
March 31, 2023



Residential real estate	$	297	$	138	$	—		$	435
Other consumer	40		—		—			40
	$	337	$	138	$	—		$	475

(1) Represents one residential loan that defaulted during the period and had been modified within the previous 12 months. There were no such loans that defaulted during the three months ended March 31, 2023.