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Loans Held for Investment (Tables)
 6 Months Ended
Jun. 30, 2024
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)20242023
Investor loans secured by real estate
CRE non-owner-occupied$2,245,474 $2,421,772 
Multifamily5,473,606 5,645,310 
Construction and land453,799 472,544 
SBA secured by real estate33,245 36,400 
Total investor loans secured by real estate8,206,124 8,576,026 
Business loans secured by real estate
CRE owner-occupied2,096,485 2,191,334 
Franchise real estate secured274,645 304,514 
SBA secured by real estate46,543 50,741 
Total business loans secured by real estate2,417,673 2,546,589 
Commercial loans
Commercial and industrial1,554,735 1,790,608 
Franchise non-real estate secured257,516 319,721 
SBA non-real estate secured10,346 10,926 
Total commercial loans1,822,597 2,121,255 
Retail loans
Single family residential70,380 72,752 
Consumer1,378 1,949 
Total retail loans71,758 74,701 
Loans held for investment before basis adjustment (1)
12,518,152 13,318,571 
Basis adjustment associated with fair value hedge (2)
(28,201)(29,551)
Loans held for investment12,489,951 13,289,020 
Allowance for credit losses for loans held for investment(183,803)(192,471)
Loans held for investment, net$12,306,148 $13,096,549 
Total unfunded loan commitments$1,601,870 $1,703,470 
Loans held for sale, at lower of cost or fair value$140 $— 
______________________________
(1) Includes net deferred origination costs (fees) of $1.4 million and $(74,000), and unaccreted fair value net purchase discounts of $38.6 million and $43.3 million as of June 30, 2024 and December 31, 2023, 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.
Schedule of Investments by Origination Year and 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 well as the gross charge-offs on a year-to-date basis by year of origination as of June 30, 2024:
Term Loans by Vintage
(Dollars in thousands)20242023202220212020PriorRevolvingRevolving Converted to Term During the PeriodTotal
June 30, 2024
Investor loans secured by real estate
CRE non-owner-occupied
Pass$14,714 $33,008 $446,505 $522,148 $172,279 $1,016,217 $— $— $2,204,871 
Special mention— — 3,585 — — — — — 3,585 
Substandard— — 11,552 — 5,827 19,639 — — 37,018 
Multifamily
Pass7,102 177,240 1,168,421 1,951,352 702,940 1,448,248 — — 5,455,303 
Special mention— — — 18,303 — — — — 18,303 
Construction and land
Pass8,331 64,180 297,667 77,655 2,225 3,317 — — 453,375 
Special mention— — — 424 — — — — 424 
SBA secured by real estate
Pass— — 6,426 — 494 18,106 — — 25,026 
Special mention— — — — — 1,130 — — 1,130 
Substandard— — — 131 — 6,958 — — 7,089 
Total investor loans secured by real estate30,147 274,428 1,934,156 2,570,013 883,765 2,513,615 — — 8,206,124 
Current period gross charge-offs— — — 29 11,539 1,333 — — 12,901 
Business loans secured by real estate
CRE owner-occupied
Pass13,495 21,080 536,561 608,665 215,350 619,662 — — 2,014,813 
Special mention— — 3,143 25,788 — 3,089 918 — 32,938 
Substandard— — 9,743 — 5,323 33,668 — — 48,734 
Franchise real estate secured
Pass1,215 9,761 41,222 107,252 25,040 86,774 — — 271,264 
Special mention— — — — — 1,579 — — 1,579 
Substandard— — — — — 1,802 — — 1,802 
SBA secured by real estate
Pass— 112 9,786 7,088 1,210 24,477 — — 42,673 
Special mention— — — — — 82 — — 82 
Substandard— — — — — 3,788 — — 3,788 
Total loans secured by business real estate14,710 30,953 600,455 748,793 246,923 774,921 918 — 2,417,673 
Current period gross charge-offs— 93 3,345 581 — 645 — — 4,664 
Commercial loans
Commercial and industrial
Pass20,206 46,560 158,164 144,617 36,839 235,697 811,278 2,808 1,456,169 
Special mention250 1,411 1,515 2,404 194 27 16,013 7,369 29,183 
Substandard— 9,906 8,393 2,473 380 1,204 43,352 — 65,708 
Doubtful
— — 3,675 — — — — — 3,675 
Term Loans by Vintage
(Dollars in thousands)20242023202220212020PriorRevolvingRevolving Converted to Term During the PeriodTotal
June 30, 2024
Franchise non-real estate secured
Pass$— $7,175 $60,339 $87,957 $9,637 $76,556 $— $— $241,664 
Special mention— — — — — 602 — — 602 
Substandard— — 1,568 306 2,188 11,188 — — 15,250 
SBA non-real estate secured
Pass313 1,564 4,336 333 54 2,977 — — 9,577 
Substandard— — 504 — 134 131 — — 769 
Total commercial loans20,769 66,616 238,494 238,090 49,426 328,382 870,643 10,177 1,822,597 
Current period gross charge-offs— 407 11 183 29 22 1,007 — 1,659 
Retail loans
Single family residential
Pass— 11 — — 163 41,183 29,023 — 70,380 
Consumer loans
Pass— — — 2 3 408 965 — 1,378 
Total retail loans— 11 — 2 166 41,591 29,988 — 71,758 
Current period gross charge-offs— — — — — 835 — — 835 
Loans held for investment before basis adjustment (1)
$65,626 $372,008 $2,773,105 $3,556,898 $1,180,280 $3,658,509 $901,549 $10,177 $12,518,152 
Total current period gross charge-offs$— $500 $3,356 $793 $11,568 $2,835 $1,007 $— $20,059 
______________________________
(1) Excludes the basis adjustment of $28.2 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, 2023:
Term Loans by Vintage
(Dollars in thousands)20232022202120202019PriorRevolvingRevolving Converted to Term During the PeriodTotal
December 31, 2023
Investor loans secured by real estate
CRE non-owner-occupied
Pass$71,452 $482,045 $549,828 $192,399 $315,139 $795,856 $— $— $2,406,719 
Special mention— 3,811 2,530 — — 625 — — 6,966 
Substandard— 412 — — — 7,675 — — 8,087 
Multifamily
Pass179,055 1,184,329 2,008,126 725,123 822,411 714,638 — — 5,633,682 
Special mention— — — — — 11,628 — — 11,628 
Construction and land
Pass59,993 309,677 94,845 2,223 2,368 3,438 — — 472,544 
SBA secured by real estate
Pass$— $6,478 $— $493 $4,804 $16,496 $— $— $28,271 
Substandard— — 131 — 536 7,462 — — 8,129 
Total investor loans secured by real estate310,500 1,986,752 2,655,460 920,238 1,145,258 1,557,818 — — 8,576,026 
Term Loans by Vintage
(Dollars in thousands)20232022202120202019PriorRevolvingRevolving Converted to Term During the PeriodTotal
December 31, 2023
Current period gross charge-offs$— $— $217 $— $1,582 $3,653 $— $— $5,452 
Business loans secured by real estate
CRE owner-occupied
Pass19,014 543,413 660,967 224,333 211,283 458,975 — — 2,117,985 
Special mention— 16,535 — 476 4,775 11,775 919 — 34,480 
Substandard— 15,539 2,162 5,505 3,873 11,790 — — 38,869 
Franchise real estate secured
Pass10,580 39,239 124,424 25,697 15,731 72,342 — — 288,013 
Special mention1,758 3,603 1,903 — 795 1,615 — — 9,674 
Substandard— 3,964 — — 2,571 292 — — 6,827 
SBA secured by real estate
Pass113 9,334 7,634 1,979 4,109 22,417 — — 45,586 
Special mention— 536 — — — 83 — — 619 
Substandard— — — — — 4,536 — — 4,536 
Total loans secured by business real estate31,465 632,163 797,090 257,990 243,137 583,825 919 — 2,546,589 
Current period gross charge-offs— — 318 191 — 1,861 — — 2,370 
Commercial loans
Commercial and industrial
Pass46,765 172,987 160,275 40,988 110,526 146,310 966,733 6,518 1,651,102 
Special mention239 23,242 12,270 367 16 2,139 42,570 407 81,250 
Substandard425 8,052 2,689 588 173 1,138 26,462 14,187 53,714 
Doubtful and loss— — — — — — — 4,542 4,542 
Franchise non-real estate secured
Pass6,801 74,441 112,112 16,355 34,770 53,957 — 753 299,189 
Special mention433 845 1,633 — 627 692 — — 4,230 
Substandard— 1,646 322 2,324 10,451 1,559 — — 16,302 
SBA non-real estate secured
Pass1,075 4,485 343 113 1,464 2,490 — — 9,970 
Substandard— 527 — 141 53 235 — — 956 
Total commercial loans55,738 286,225 289,644 60,876 158,080 208,520 1,035,765 26,407 2,121,255 
Current period gross charge-offs132 3,053 62 5 362 37 6,387 503 10,541 
Retail loans
Single family residential
Pass20 — — 167 — 44,104 28,461 — 72,752 
Consumer loans
Pass— — 3 9 5 788 1,144 — 1,949 
Total retail loans20 — 3 176 5 44,892 29,605 — 74,701 
Current period gross charge-offs$— $— $— $— $— $983 $3 $— $986 
Loans held for investment before basis adjustment (1)$397,723 $2,905,140 $3,742,197 $1,239,280 $1,546,480 $2,395,055 $1,066,289 $26,407 $13,318,571 
Total current period gross charge-offs$132 $3,053 $597 $196 $1,944 $6,534 $6,390 $503 $19,349 
______________________________
(1) Excludes the basis adjustment of $29.6 million to the carrying amount of certain loans included in fair value hedging relationships. Refer to Note 11 – Derivative Instruments for additional information.
Schedule of Delinquencies in the Company's Loan Portfolio
The following tables stratify the loans held for investment portfolio by delinquency as of the periods indicated:
Days Past Due(2)
(Dollars in thousands)Current30-5960-8990+Total
June 30, 2024
Investor loans secured by real estate
CRE non-owner-occupied$2,244,424 $— $— $1,050 $2,245,474 
Multifamily5,473,606 — — — 5,473,606 
Construction and land453,799 — — — 453,799 
SBA secured by real estate32,748 — — 497 33,245 
Total investor loans secured by real estate8,204,577 — — 1,547 8,206,124 
Business loans secured by real estate
CRE owner-occupied2,088,046 3,852 — 4,587 2,096,485 
Franchise real estate secured274,353 — — 292 274,645 
SBA secured by real estate46,543 — — — 46,543 
Total business loans secured by real estate2,408,942 3,852 — 4,879 2,417,673 
Commercial loans
Commercial and industrial1,552,024 1,133 449 1,129 1,554,735 
Franchise non-real estate secured253,117 — 2,840 1,559 257,516 
SBA not secured by real estate9,811 — — 535 10,346 
Total commercial loans1,814,952 1,133 3,289 3,223 1,822,597 
Retail loans
Single family residential70,380 — — — 70,380 
Consumer loans1,378 — — — 1,378 
Total retail loans71,758 — — — 71,758 
Loans held for investment before basis adjustment (1)
$12,500,229 $4,985 $3,289 $9,649 $12,518,152 
December 31, 2023
Investor loans secured by real estate
CRE non-owner-occupied$2,421,360 $— $— $412 $2,421,772 
Multifamily5,645,310 — — — 5,645,310 
Construction and land472,544 — — — 472,544 
SBA secured by real estate35,980 — — 420 36,400 
Total investor loans secured by real estate8,575,194 — — 832 8,576,026 
Business loans secured by real estate
CRE owner-occupied2,186,679 — — 4,655 2,191,334 
Franchise real estate secured304,222 292 — — 304,514 
SBA secured by real estate50,604 137 — — 50,741 
Total business loans secured by real estate2,541,505 429 — 4,655 2,546,589 
Commercial loans
Commercial and industrial1,788,855 228 1,294 231 1,790,608 
Franchise non-real estate secured318,162 1,559 — — 319,721 
SBA not secured by real estate10,119 249 — 558 10,926 
Total commercial loans2,117,136 2,036 1,294 789 2,121,255 
Retail loans
Single family residential72,733 19 — — 72,752 
Consumer loans1,949 — — — 1,949 
Total retail loans74,682 19 — — 74,701 
Loans held for investment before basis adjustment (1)
$13,308,517 $2,484 $1,294 $6,276 $13,318,571 
______________________________
(1) Excludes the basis adjustment of $28.2 million and $29.6 million to the carrying amount of certain loans included in fair value hedging relationships as of June 30, 2024 and December 31, 2023, respectively. Refer to Note 11 – Derivative Instruments for additional information.
(2) Nonaccrual loans are included in this aging analysis based on the loan’s past due status.
Schedule of Nonaccrual Loans
The following tables provide a summary of nonaccrual loans as of the dates indicated:
Nonaccrual Loans (1)
Collateral Dependent LoansNon-Collateral Dependent LoansTotal Nonaccrual LoansNonaccrual Loans with No ACL
(Dollars in thousands)BalanceACLBalanceACL
June 30, 2024
Investor loans secured by real estate
CRE non-owner-occupied$19,381 $— $— $— $19,381 $19,381 
SBA secured by real estate934 — — — 934 934 
Total investor loans secured by real estate20,315 — — — 20,315 20,315 
Business loans secured by real estate
CRE owner-occupied8,439 — — — 8,439 8,439 
Franchise real estate secured— — 292 37 292 — 
Total business loans secured by real estate8,439 — 292 37 8,731 8,439 
Commercial loans
Commercial and industrial9,252 — 11,727 — 20,979 20,979 
Franchise non-real estate secured— — 1,559 200 1,559 — 
SBA non-real estate secured535 — — — 535 535 
Total commercial loans9,787 — 13,286 200 23,073 21,514 
Total nonaccrual loans$38,541 $— $13,578 $237 $52,119 $50,268 
Nonaccrual Loans (1)
(Dollars in thousands)Collateral Dependent LoansACLNon-Collateral Dependent LoansACLTotal Nonaccrual LoansNonaccrual Loans with No ACL
December 31, 2023
Investor loans secured by real estate
CRE non-owner-occupied$412 $— $— $— $412 $412 
SBA secured by real estate1,205 — — — 1,205 1,205 
Total investor loans secured by real estate1,617 — — — 1,617 1,617 
Business loans secured by real estate
CRE owner-occupied8,666 — — — 8,666 8,666 
Total business loans secured by real estate8,666 — — — 8,666 8,666 
Commercial loans
Commercial and industrial1,381 — 12,595 — 13,976 13,976 
SBA non-real estate secured558 — — — 558 558 
Total commercial loans1,939 — 12,595 — 14,534 14,534 
Total nonaccrual loans$12,222 $— $12,595 $— $24,817 $24,817 
______________________________
(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 Financing Receivable, MLTB
The following table shows the amortized cost of the MLTB by class and type of modification, as well as the percentage of the loans modified to the total class of loans at and during the three months ended June 30, 2024:

Three Months Ended June 30, 2024
Other-than-Insignificant Payment Delay
and
Term Extension
(Dollars in thousands)Balance
Percent of Total Class of Loans
Investor loans secured by real estate
CRE non-owner-occupied$16,296 0.73 %
Total investor loans secured by real estate$16,296 

The following table shows the amortized cost of the MLTB by class and type of modification, as well as the percentage of the loans modified to the total class of loans at and during the six months ended June 30, 2024 and 2023:
Six Months Ended June 30, 2024
Combination of
Other-than-Insignificant Payment Delay
and
Term Extension
(Dollars in thousands)BalancePercent of Total Class of Loans
Investor loans secured by real estate
CRE non-owner-occupied16,296 0.73 %
Total investor loans secured by real estate16,296 

Six Months Ended June 30, 2023
Term Extension
(Dollars in thousands)BalancePercent of Total
Business loans secured by real estate
CRE owner-occupied851 0.04 %
Total business loans secured by real estate851 

The following table describes the financial effect of the loan modification made for the borrower experiencing financial difficulty during the three and six months ended June 30, 2024:
Combination of
Other-than-Insignificant Payment Delay and
Term Extension
Investor loans secured by real estate
CRE non-owner-occupied
Consolidated 3 loans with varying maturities into a single loan that extended the weighted average maturity by 6 months
and
2 years of interest only payments
The MLTB reported during the first quarter of 2023 matured during the second quarter of 2023. The following table describes the financial effect of the loan modification made for the borrower experiencing financial difficulty during the six months ended June 30, 2023:
Term Extension
Business loans secured by real estate
CRE owner-occupied
Extended term by 4 months
The following table depicts the performance of the MLTBs as of the dates indicated:
Days Past Due
(Dollars in thousands)Current30-5960-8990+Total
June 30, 2024
Investor loans secured by real estate
CRE non-owner-occupied
$16,296 $— $— $— $16,296 
Total investor loans secured by real estate16,296 — — — 16,296 
Commercial loans
Commercial and industrial$11,727 $— $— $— $11,727 
Total commercial loans$11,727 $— $— $— $11,727 
Total$28,023 $— $— $— $28,023 
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 PropertiesRetail PropertiesLand PropertiesHotel PropertiesOther CRE PropertiesBusiness AssetsTotal
June 30, 2024
Investor loan secured by real estate
CRE non-owner-occupied$16,296 $1,050 $— $— $2,035 $— $19,381 
SBA secured by real estate— — — 934 — — 934 
Total investor loans secured by real estate16,296 1,050 — 934 2,035 — 20,315 
Business loans secured by real estate
CRE owner-occupied3,852 — 4,587 — — — 8,439 
Total business loans secured by real estate3,852 — 4,587 — — — 8,439 
Commercial loans
Commercial and industrial— — 229 — — 9,023 9,252 
SBA non-real estate secured— — — — — 535 535 
Total commercial loans— — 229 — — 9,558 9,787 
Total collateral dependent loans$20,148 $1,050 $4,816 $934 $2,035 $9,558 $38,541 

December 31, 2023
Investor loan secured by real estate
CRE non-owner-occupied$— $412 $— $— $— $— $412 
SBA secured by real estate— — — 1,205 — — 1,205 
Total investor loans secured by real estate— 412 — 1,205 — — 1,617 
Business loans secured by real estate
CRE owner-occupied4,011 — 4,655 — — — 8,666 
Total business loans secured by real estate4,011 — 4,655 — — — 8,666 
Commercial loans
Commercial and industrial— — 231 — — 1,150 1,381 
SBA non-real estate secured— — — — — 558 558 
Total commercial loans— — 231 — — 1,708 1,939 
Total collateral dependent loans$4,011 $412 $4,886 $1,205 $— $1,708 $12,222