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Loans Held for Investment (Tables)
 12 Months Ended
Dec. 31, 2024
Receivables [Abstract]  
Schedule of Components of Loans Held for Investment
The following table presents the composition of the loan portfolio as of the dates indicated:
 December 31,
(Dollars in thousands)20242023
Investor loans secured by real estate
CRE non-owner-occupied$2,131,112 $2,421,772 
Multifamily5,326,009 5,645,310 
Construction and land379,143 472,544 
SBA secured by real estate28,777 36,400 
Total investor loans secured by real estate7,865,041 8,576,026 
Business loans secured by real estate
CRE owner-occupied1,995,144 2,191,334 
Franchise real estate secured255,694 304,514 
SBA secured by real estate43,978 50,741 
Total business loans secured by real estate2,294,816 2,546,589 
Commercial loans
Commercial and industrial1,486,340 1,790,608 
Franchise non-real estate secured213,357 319,721 
SBA non-real estate secured8,086 10,926 
Total commercial loans1,707,783 2,121,255 
Retail loans
Single family residential186,739 72,752 
Consumer1,804 1,949 
Total retail loans188,543 74,701 
Loans held for investment before basis adjustment (1)
12,056,183 13,318,571 
Basis adjustment associated with fair value hedge (2)
(16,442)(29,551)
Loans held for investment12,039,741 13,289,020 
Allowance for credit losses for loans held for investment(178,186)(192,471)
Loans held for investment, net$11,861,555 $13,096,549 
Total unfunded loan commitments$1,532,623 $1,703,470 
Loans held for sale, at lower of cost or fair value$2,315 $— 
____________________________________________________
(1) Includes unamortized net purchase premiums of $9.1 million and $4.0 million, net deferred origination costs (fees) of $1.1 million and $(74,000), and unaccreted fair value net purchase discounts of $33.2 million and $43.3 million as of December 31, 2024 and 2023, respectively.
(2) Represents the basis adjustment associated with the application of hedge accounting on certain loans. The basis adjustment will be allocated to the amortized cost of associated loans within the closed portfolio if the hedge is discontinued. Refer to Note 19 – Derivative Instruments for additional information.
Schedule 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 well as the gross charge-offs on a year-to-date basis by year of origination as of December 31, 2024:
Term Loans by Vintage
(Dollars in thousands)20242023202220212020PriorRevolvingRevolving Converted to Term During the PeriodTotal
December 31, 2024
Investor loans secured by real estate
CRE non-owner-occupied
Pass$61,326 $30,284 $448,638 $491,594 $160,984 $900,867 $— $— $2,093,693 
Special mention— — — 2,918 — 1,531 — — 4,449 
Substandard13,563 — 11,167 — 5,740 2,500 — — 32,970 
Multifamily
Pass120,793 168,040 1,136,648 1,931,238 669,154 1,272,416 — — 5,298,289 
Special mention— — — 2,053 14,052 11,615 — — 27,720 
Construction and land
Pass79,235 47,024 216,604 21,063 2,224 3,185 — — 369,335 
Special mention— — 9,398 410 — — — — 9,808 
SBA secured by real estate
Pass— — 6,366 — 493 17,189 — — 24,048 
Substandard— — — 131 — 4,598 — — 4,729 
Total investor loans secured by real estate274,917 245,348 1,828,821 2,449,407 852,647 2,213,901 — — 7,865,041 
Year-to-date gross charge-offs
2,304 — 28 29 11,539 1,651 — — 15,551 
Business loans secured by real estate
CRE owner-occupied
Pass54,983 20,800 505,611 578,642 209,526 546,759 — — 1,916,321 
Special mention— — 2,663 24,673 1,884 9,169 — — 38,389 
Substandard— — — 832 — 39,602 — — 40,434 
Franchise real estate secured
Pass2,501 9,622 36,991 98,416 15,397 78,083 — — 241,010 
Special mention— — — 5,027 8,102 1,555 — — 14,684 
SBA secured by real estate
Pass741 108 9,699 7,007 1,205 22,101 — — 40,861 
Substandard— — — — — 3,117 — — 3,117 
Total loans secured by business real estate58,225 30,530 554,964 714,597 236,114 700,386 — — 2,294,816 
Year-to-date gross charge-offs
— 93 3,345 581 1,152 1,024 — — 6,195 
Commercial loans
Commercial and industrial
Pass436,794 34,576 122,900 130,428 32,337 210,544 484,411 3,926 1,455,916 
Special mention533 407 — — 160 — 11,408 330 12,838 
Substandard— 842 9,192 2,439 3 540 1,685 — 14,701 
Doubtful and loss— — 2,885 — — — — — 2,885 
Franchise non-real estate secured
Pass1,325 6,770 56,825 77,541 8,907 54,069 — — 205,437 
Special mention— — — 190 — 512 — — 702 
Substandard1,142 — — — — 6,076 — — 7,218 
Term Loans by Vintage
(Dollars in thousands)20242023202220212020PriorRevolvingRevolving Converted to Term During the PeriodTotal
December 31, 2024
SBA non-real estate secured
Pass944 248 4,176 322 — 2,201 — — 7,891 
Substandard— — — — 125 70 — — 195 
Total commercial loans440,738 42,843 195,978 210,920 41,532 274,012 497,504 4,256 1,707,783 
Year-to-date gross charge-offs
— 470 370 290 41 234 2,539 — 3,944 
Retail loans
Single family residential
Pass116,317 10 — — 158 35,923 34,331 — 186,739 
Consumer loans
Pass104 — — — 1 374 1,325 — 1,804 
Total retail loans116,421 10 — — 159 36,297 35,656 — 188,543 
Current period gross charge-offs10 2 7 1 — 876 — — 896 
Loans held for investment before basis adjustment (1)
$890,301 $318,731 $2,579,763 $3,374,924 $1,130,452 $3,224,596 $533,160 $4,256 $12,056,183 
Total year-to-date gross charge-offs
$2,314 $565 $3,750 $901 $12,732 $3,785 $2,539 $— $26,586 
______________________________
(1) Excludes the basis adjustment of $16.4 million to the carrying amount of certain loans included in fair value hedging relationships. Refer to Note 19 – 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 estate$310,500 $1,986,752 $2,655,460 $920,238 $1,145,258 $1,557,818 $— $— $8,576,026 
Year-to-date gross charge-offs
— — 217 — 1,582 3,653 — — 5,452 
Term Loans by Vintage
(Dollars in thousands)20232022202120202019PriorRevolvingRevolving Converted to Term During the PeriodTotal
December 31, 2023
Business loans secured by real estate
CRE owner-occupied
Pass$19,014 $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 
Year-to-date 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 
Year-to-date gross charge-offs
132 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 
Year-to-date 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 year-to-date 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 19 – 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
December 31, 2024
Investor loans secured by real estate
CRE non-owner-occupied$2,131,112 $— $— $— $2,131,112 
Multifamily5,326,009 — — — 5,326,009 
Construction and land379,143 — — — 379,143 
SBA secured by real estate28,777 — — — 28,777 
Total investor loans secured by real estate7,865,041 — — — 7,865,041 
Business loans secured by real estate
CRE owner-occupied1,995,144 — — — 1,995,144 
Franchise real estate secured255,694 — — — 255,694 
SBA secured by real estate43,978 — — — 43,978 
Total business loans secured by real estate2,294,816 — — — 2,294,816 
Commercial loans
Commercial and industrial1,483,926 824 349 1,241 1,486,340 
Franchise non-real estate secured213,357 — — — 213,357 
SBA not secured by real estate8,017 49 — 20 8,086 
Total commercial loans1,705,300 873 349 1,261 1,707,783 
Retail loans
Single family residential186,603 136 — — 186,739 
Consumer loans1,804 — — — 1,804 
Total retail loans188,407 136 — — 188,543 
Loans held for investment before basis adjustment (1)
$12,053,564 $1,009 $349 $1,261 $12,056,183 
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 $16.4 million and $29.6 million to the carrying amount of certain loans included in fair value hedging relationships as of December 31, 2024 and 2023, respectively. Refer to Note 19 – 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
December 31, 2024
Investor loans secured by real estate
CRE non-owner-occupied$15,423 $— $— $— $15,423 $15,423 
SBA secured by real estate409 — — — 409 409 
Total investor loans secured by real estate15,832 — — — 15,832 15,832 
Commercial loans
Commercial and industrial1,241 — 10,938 — 12,179 12,179 
SBA non-real estate secured20 — — — 20 20 
Total commercial loans1,261 — 10,938 — 12,199 12,199 
Total nonaccrual loans$17,093 $— $10,938 $— $28,031 $28,031 
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 MLTBs
The following table shows the amortized cost of the MLTBs by class and type of modification, as well as the percentage of the loans modified to total loans in each class at and during the periods indicated:
Year Ended December 31, 2024
Combination of
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$13,563 0.64 %
Total investor loans secured by real estate$13,563 

Year Ended December 31, 2023
Other-than-Insignificant Payment Delay
(Dollars in thousands)Balance
Percent of Total Class of Loans
Commercial loans
Commercial and industrial$12,595 0.70 %
Total commercial loans$12,595 

The following table describes the financial effect of the loan modification made for the borrower experiencing financial difficulty during the year ended December 31, 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, as well as 2 years of interest-only payments
The following table describes the financial effect of the loan modification made for the borrower experiencing financial difficulty during the year ended December 31, 2023:
Other-than-Insignificant Payment Delay
Commercial loans
Commercial and industrial
1 year of interest-only payments
The following table depicts the performance of the loans that were modified in the past 12 months as of the dates indicated:
Days Past Due
(Dollars in thousands)Current30-5960-8990+Total
December 31, 2024
Investor loans secured by real estate
CRE non-owner occupied$13,563 $— $— $— $13,563 
Total investor loans secured by real estate$13,563 $— $— $— $13,563 
December 31, 2023
Commercial loans
Commercial and industrial$12,595 $— $— $— $12,595 
Total commercial loans$12,595 $— $— $— $12,595 
Schedule of Collateral Dependent Loans by Collateral Type The following tables summarize collateral dependent loans by collateral type as of the dates indicated:
December 31, 2024
(Dollars in thousands)Office PropertiesRetail PropertiesLand PropertiesHotel PropertiesOther CRE PropertiesBusiness AssetsTotal
December 31, 2024
Investor loan secured by real estate
CRE non-owner-occupied$13,563 $— $— $— $1,860 $— $15,423 
SBA secured by real estate— — — 409 — — 409 
Total investor loans secured by real estate13,563 — — 409 1,860 — 15,832 
Commercial loans
Commercial and industrial— — — — — 1,241 1,241 
SBA non-real estate secured— — — — — 20 20 
Total commercial loans— — — — — 1,261 1,261 
Total collateral dependent loans$13,563 $— $— $409 $1,860 $1,261 $17,093 
December 31, 2023
(Dollars in thousands)Office PropertiesRetail PropertiesLand PropertiesHotel Properties
Other CRE Properties
Business AssetsTotal
December 31, 2023
Investor loan secured by real estate
CRE non-owner-occupied$— $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