Loans Receivable, Net (Tables)

6 Months Ended

Jun. 30, 2024

Loans receivable, net at June 30, 2024 and December 31, 2023 consisted of the following (in thousands):


	June 30,		December 31,
	2024		2023
Commercial:
Commercial real estate – investor	$	5,324,994	$	5,353,974
Commercial real estate – owner occupied	857,710		943,891
Commercial and industrial	616,400		666,532
Total commercial	6,799,104		6,964,397
Consumer:
Residential real estate	2,977,698		2,979,534

Home equity loans and lines and other consumer (“other consumer”)	242,526		250,664

Total consumer	3,220,224		3,230,198
Total loans receivable	10,019,328		10,194,595
Deferred origination costs, net of fees	10,628		9,263
Allowance for loan credit losses	(68,839)		(67,137)
Total loans receivable, net	$	9,961,117	$	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
June 30, 2024

Commercial real estate - investor
Pass	$	65,438	$	139,228	$	1,165,143	$	1,316,210	$	530,706	$	1,327,253	$	682,968	$	5,226,946
Special Mention	—		—		—		2,364		—		32,616		—		34,980
Substandard	—		—		1,877		595		4,517		56,079		—		63,068
Total commercial real estate - investor	65,438		139,228		1,167,020		1,319,169		535,223		1,415,948		682,968		5,324,994
Commercial real estate - owner occupied
Pass	19,965		63,519		115,156		92,772		42,908		486,929		18,057		839,306
Special Mention	—		—		—		—		—		4,358		—		4,358
Substandard	—		—		—		—		259		13,163		624		14,046
Total commercial real estate - owner occupied	19,965		63,519		115,156		92,772		43,167		504,450		18,681		857,710
Commercial and industrial
Pass	18,192		73,951		49,532		17,232		5,778		50,144		382,803		597,632
Special Mention	—		5,028		—		—		—		156		2,356		7,540
Substandard	—		—		355		63		—		479		10,331		11,228
Total commercial and industrial	18,192		78,979		49,887		17,295		5,778		50,779		395,490		616,400


Residential real estate (1)
Pass	110,093		274,260		888,707		549,989		373,650		774,976		—		2,971,675
Special Mention	—		—		633		—		416		1,295		—		2,344
Substandard	—		992		—		—		—		2,687		—		3,679
Total residential real estate	110,093		275,252		889,340		549,989		374,066		778,958		—		2,977,698
Other consumer (1)
Pass	15,295		29,624		18,668		18,465		11,566		119,456		28,082		241,156
Special Mention	—		—		165		—		296		84		—		545
Substandard	—		—		—		—		—		825		—		825
Total other consumer	15,295		29,624		18,833		18,465		11,862		120,365		28,082		242,526

Total loans	$	228,983	$	586,602	$	2,240,236	$	1,997,690	$	970,096	$	2,870,500	$	1,125,221	$	10,019,328

(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 and six months ended June 30, 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 June 30, 2024
Allowance for credit losses on loans
Balance at beginning of period	$	26,990	$	4,251	$	7,641	$	27,104	$	1,187	$	67,173
Provision (benefit) for credit losses	2,462		(341)		272		642		83		3,118
Charge-offs (1)	(1,600)		—		—		—		—		(1,600)
Recoveries	1		21		2		87		37		148
Balance at end of period	$	27,853	$	3,931	$	7,915	$	27,833	$	1,307	$	68,839
For the three months ended June 30, 2023
Allowance for credit losses on loans
Balance at beginning of period	$	22,451	$	4,116	$	5,827	$	26,928	$	873	$	60,195
Provision (benefit) for credit losses	2,029		223		239		(785)		13		1,719
Charge-offs (1)	—		—		(125)		—		(81)		(206)
Recoveries	1		3		4		9		66		83
Balance at end of period	$	24,481	$	4,342	$	5,945	$	26,152	$	871	$	61,791
For the six months ended June 30, 2024
Allowance for credit losses on loans
Balance at beginning of period	$	27,899	$	4,354	$	6,867	$	27,029	$	988	$	67,137
Provision (benefit) for credit losses	1,597		(448)		1,041		651		662		3,503
Charge-offs (1)	(1,646)		—		—		—		(395)		(2,041)
Recoveries	3		25		7		153		52		240
Balance at end of period	$	27,853	$	3,931	$	7,915	$	27,833	$	1,307	$	68,839
For the six months ended June 30, 2023
Allowance for credit losses on loans
Balance at beginning of period	$	21,070	$	4,423	$	5,695	$	24,530	$	1,106	$	56,824
(Benefit) provision for credit losses	3,408		(81)		370		1,605		(259)		5,043
Charge-offs (1)	—		(6)		(128)		—		(82)		(216)
Recoveries	3		6		8		17		106		140
Balance at end of period	$	24,481	$	4,342	$	5,945	$	26,152	$	871	$	61,791

(1) Gross charge-offs for the three months ended June 30, 2024 of $1.6 million related to one commercial real estate relationship that originated in 2019. Gross charge-offs for the six months ended June 30, 2024 of $2.0 million also included one commercial real estate relationship of $46,000, originated in 2021, and the remaining $395,000 of consumer loan charge-offs originated prior to 2019. Gross charge-offs for the three and six months ended June 30, 2023 of $206,000 and $216,000, respectively, related to loans that were originated in and 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 June 30, 2024 and December 31, 2023 (in thousands):


	June 30,		December 31,
	2024		2023
Commercial real estate – investor (1)	$	19,761	$	20,820
Commercial real estate – owner occupied	4,081		351
Commercial and industrial	434		304
Residential real estate	7,213		5,542
Other consumer	1,933		2,531
	$	33,422	$	29,548

(1) Includes the remaining exposure of $7.2 million and $8.8 million, respectively, on a single commercial real estate relationship located in a central business district (“CBD”).

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 June 30, 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
June 30, 2024
Commercial real estate – investor (1)	$	1,311	$	—	$	14,027	$	15,338	$	5,309,656	$	5,324,994
Commercial real estate – owner occupied	—		476		743		1,219		856,491		857,710
Commercial and industrial	744		—		434		1,178		615,222		616,400
Residential real estate	1,137		2,344		3,679		7,160		2,970,538		2,977,698
Other consumer	3,098		545		825		4,468		238,058		242,526
	$	6,290	$	3,365	$	19,708	$	29,363	$	9,989,965	$	10,019,328
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) Includes the remaining exposure of $7.2 million and $8.8 million, respectively, on a single commercial real estate relationship noted above.

Schedule of Modified and Troubled Debt Restructuring Loans

The following table presents loans modifications made to borrowers experiencing financial difficulty during the three and six months ended June 30, 2024 and 2023 (in thousands):


	Term Extension		Interest Rate Reduction		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 June 30, 2024
Commercial real estate – investor	$	—	$	4,878	$	7,000	$	—	$	11,878	0.22	%




	$	—	$	4,878	$	7,000	$	—	$	11,878	0.12	%
For the three months ended June 30, 2023



Residential real estate	$	223	$	—	$	—	$	—	$	223	0.01	%
Other consumer	200		—		—		—		200		0.08
	$	423	$	—	$	—	$	—	$	423	—	%
For the six months ended June 30, 2024
Commercial real estate – investor	$	—	$	4,878	$	7,000	$	—	$	11,878	0.22	%
Commercial real estate – owner occupied	—		—		—		2,994		2,994		0.35

Residential real estate	129		—		—		—		129		—
Other consumer	—		—		148		—		148		0.06
	$	129	$	4,878	$	7,148	$	2,994	$	15,149	0.15	%
For the six months ended June 30, 2023



Residential real estate	$	658	$	—	$	—	$	—	$	658	0.02	%
Other consumer	240		—		—		—		240		0.09
	$	898	$	—	$	—	$	—	$	898	0.01	%

The following table provides the performance of loans modified to borrowers experiencing financial difficulty during the twelve months ended June 30, 2024 and since adoption of the standard for June 30, 2023 (in thousands):



	Current		60 - 89 Days past due		90 Days or Greater past due			Total
June 30, 2024
Commercial real estate – investor	$	19,651	$	—	$	—		$	19,651
Commercial real estate – owner occupied	2,945		—		—			2,945

Residential real estate	205		—		—			205
Other consumer	170		147		—			317
	$	22,971	$	147	$	—		$	23,118
June 30, 2023



Residential real estate	$	515	$	—	$	143	(1)	$	658
Other consumer	240		—		—			240
	$	755	$	—	$	143		$	898

(1) Represents one residential loan that defaulted during the three months ended June 30, 2023, which had been modified since the adoption of the standard.