Loans Receivable and Allowance for Credit Losses

12 Months Ended

Dec. 31, 2024

Loans and Leases Receivable Disclosure [Abstract]

Loans Receivable and Allowance for Credit Losses

Loans Receivable and Allowance for Credit Losses

The following table presents the composition of the Company’s loans held-for-investment outstanding as of December 31, 2024 and 2023:

($ in thousands)	December 31, 2024		December 31, 2023
Commercial:
C&I	$	17,397,158	$	16,581,079
CRE:
CRE	14,655,340		14,777,081
Multifamily residential	4,953,442		5,023,163
Construction and land	666,162		663,868
Total CRE	20,274,944		20,464,112
Total commercial	37,672,102		37,045,191
Consumer:
Residential mortgage:
Single-family residential	14,175,446		13,383,060
HELOCs	1,811,628		1,722,204
Total residential mortgage	15,987,074		15,105,264
Other consumer	67,461		60,327
Total consumer	16,054,535		15,165,591
Total loans held-for-investment (1)	$	53,726,637	$	52,210,782
Allowance for loan losses	(702,052)		(668,743)
Loans held-for-investment, net (1)	$	53,024,585	$	51,542,039

(1)Includes $46 million and $71 million of net deferred loan fees and net unamortized premiums as of December 31, 2024 and 2023, respectively.

Accrued interest receivable on loans held-for-investment was $255 million and $267 million as of December 31, 2024 and 2023, respectively, and was included in Other assets on the Consolidated Balance Sheet. The interest income reversed was insignificant for the years ended December 31, 2024, 2023 and 2022. For the Company’s accounting policy on accrued interest receivable related to loans held-for-investment, see Note 1 — Summary of Significant Accounting Policies — Loans Held-for-Investment to the Consolidated Financial Statements in this Form 10-K. The Company also has loans held-for-sale. For the Company’s accounting policy on loans held-for-sale, refer to Note 1 — Summary of Significant Accounting Policies — Loans Held-for-Sale to the Consolidated Financial Statements in this Form 10-K.

The Company’s FRB and FHLB borrowings are primarily secured by loans held-for-investment. Loans held-for-investment totaling $38.2 billion and $37.2 billion, respectively, were pledged to secure borrowings and provide additional borrowing capacity as of December 31, 2024 and 2023.

Credit Quality Indicators

All loans are subject to the Company’s credit review and monitoring process. For the commercial loan portfolio, loans are risk rated based on an analysis of the borrower’s current payment performance or delinquency, repayment sources, financial and liquidity factors, including industry and geographic considerations. For the consumer loan portfolio, payment performance or delinquency is typically the driving indicator for risk ratings.

The Company utilizes internal credit risk ratings to assign each individual loan a risk rating of 1 through 10:

•Pass — loans risk rated 1 through 5 are assigned an internal risk rating category of “Pass.” Loans risk rated 1 are typically loans fully secured by cash. Pass loans have sufficient sources of repayment to repay the loan in full, in accordance with all terms and conditions.

•Special mention — loans assigned a risk rating of 6 have potential weaknesses that warrant closer attention by management; these are assigned an internal risk rating category of “Special Mention.”

•Substandard — loans assigned a risk rating of 7 or 8 have well-defined weaknesses that may jeopardize the full and timely repayment of the loan; these are assigned an internal risk rating category of “Substandard.”

•Doubtful — loans assigned a risk rating of 9 have insufficient sources of repayment and a high probability of loss; these are assigned an internal risk rating category of “Doubtful.”

•Loss — loans assigned a risk rating of 10 are uncollectible and of such little value that they are no longer considered bankable assets; these are assigned an internal risk rating category of “Loss.”

Loan exposures categorized as criticized consist of special mention, substandard, doubtful and loss categories. The Company reviews the internal risk ratings of its loan portfolio on a regular basis, and adjusts the ratings based on changes in the borrowers’ financial status and the collectability of the loans.

The following tables summarize the Company’s loans held-for-investment and year-to-date gross write-offs by loan portfolio segments, internal risk ratings and vintage year as of December 31, 2024 and 2023. The vintage year is the year of loan origination, renewal or major modification. Gross write-offs in the following tables are for the years ended December 31, 2024 and 2023. Revolving loans that are converted to term loans presented in the tables below are excluded from the term loans by vintage year columns.

	December 31, 2024
	Term Loans by Origination Year
($ in thousands)	2024		2023		2022		2021		2020		Prior		Revolving Loans		Revolving Loans Converted to Term Loans (1)		Total
Commercial:
C&I:
Pass	$	2,605,928	$	1,508,948	$	999,586	$	612,015	$	243,528	$	295,884	$	10,574,404	$	23,032	$	16,863,325
Criticized (accrual)	34,412		51,415		61,041		107,355		10,538		31,160		151,747		—		447,668
Criticized (nonaccrual)	3,822		29,181		20,273		10,666		3,225		9,135		9,863		—		86,165
Total C&I	2,644,162		1,589,544		1,080,900		730,036		257,291		336,179		10,736,014		23,032		17,397,158
Gross write-offs (2)	20		47,963		14,848		11,119		1,568		3,012		27,099		—		105,629
CRE:
Pass	1,660,877		2,296,763		3,692,498		1,925,220		1,296,439		3,176,450		96,791		49,302		14,194,340
Criticized (accrual)	34,543		44,557		90,105		31,615		75,578		167,401		—		14,771		458,570
Criticized (nonaccrual)	—		—		—		—		1,756		674		—		—		2,430
Subtotal CRE	1,695,420		2,341,320		3,782,603		1,956,835		1,373,773		3,344,525		96,791		64,073		14,655,340
Gross write-offs (2)	—		—		—		—		—		3		—		—		3
Multifamily residential:
Pass	386,743		521,754		1,337,599		752,230		613,115		1,242,586		14,640		1,253		4,869,920
Criticized (accrual)	—		—		43,997		32,042		—		2,911		—		—		78,950
Criticized (nonaccrual)	—		—		—		—		—		4,572		—		—		4,572
Subtotal multifamily residential	386,743		521,754		1,381,596		784,272		613,115		1,250,069		14,640		1,253		4,953,442
Gross write-offs	—		—		—		—		—		10		—		—		10
Construction and land:
Pass	90,926		328,803		184,792		41,932		—		8,393		—		—		654,846
Criticized (nonaccrual)	—		—		11,316		—		—		—		—		—		11,316
Subtotal construction and land	90,926		328,803		196,108		41,932		—		8,393		—		—		666,162
Gross write-offs	—		—		2,289		—		—		—		—		—		2,289
Total CRE	2,173,089		3,191,877		5,360,307		2,783,039		1,986,888		4,602,987		111,431		65,326		20,274,944
Total CRE gross write-offs (2)	—		—		2,289		—		—		13		—		—		2,302
Total commercial	$	4,817,251	$	4,781,421	$	6,441,207	$	3,513,075	$	2,244,179	$	4,939,166	$	10,847,445	$	88,358	$	37,672,102
Total commercial gross write-offs (2)	$	20	$	47,963	$	17,137	$	11,119	$	1,568	$	3,025	$	27,099	$	—	$	107,931

	December 31, 2024
	Term Loans by Origination Year
($ in thousands)	2024		2023		2022		2021		2020		Prior		Revolving Loans		Revolving Loans Converted to Term Loans (1)		Total
Consumer:
Residential mortgage:
Single-family residential:
Pass (3)	$	2,360,674	$	2,762,921	$	3,074,668	$	2,079,323	$	1,407,031	$	2,437,446	$	—	$	—	$	14,122,063
Criticized (accrual)	4,175		3,409		750		5,810		1,548		6,069		—		—		21,761
Criticized (nonaccrual) (3)	2,716		9,673		1,929		2,035		2,404		12,865		—		—		31,622
Subtotal single-family residential mortgage	2,367,565		2,776,003		3,077,347		2,087,168		1,410,983		2,456,380		—		—		14,175,446
Gross write-offs (2)	9		—		—		—		—		—		—		—		9
HELOCs:
Pass	7,453		3,288		4,071		3,236		7,570		8,152		1,648,337		99,488		1,781,595
Criticized (accrual)	1,436		—		1,420		—		135		2,064		2,338		594		7,987
Criticized (nonaccrual)	3,161		3,095		2,520		39		418		7,301		—		5,512		22,046
Subtotal HELOCs	12,050		6,383		8,011		3,275		8,123		17,517		1,650,675		105,594		1,811,628
Gross write-offs	—		10		—		—		—		—		—		5		15
Total residential mortgage	2,379,615		2,782,386		3,085,358		2,090,443		1,419,106		2,473,897		1,650,675		105,594		15,987,074
Total residential mortgage gross write-offs (2)	9		10		—		—		—		—		—		5		24
Other consumer:
Pass	14,916		—		22,992		132		—		6,800		22,555		—		67,395
Criticized (nonaccrual)	—		—		—		—		—		—		66		—		66
Total other consumer	14,916		—		22,992		132		—		6,800		22,621		—		67,461
Gross write-offs (2)	—		3,000		—		—		—		—		890		—		3,890
Total consumer	$	2,394,531	$	2,782,386	$	3,108,350	$	2,090,575	$	1,419,106	$	2,480,697	$	1,673,296	$	105,594	$	16,054,535
Total consumer gross write-offs (2)	$	9	$	3,010	$	—	$	—	$	—	$	—	$	890	$	5	$	3,914
Total loans held-for-investment:
Pass	$	7,127,517	$	7,422,477	$	9,316,206	$	5,414,088	$	3,567,683	$	7,175,711	$	12,356,727	$	173,075	$	52,553,484
Criticized (accrual)	74,566		99,381		197,313		176,822		87,799		209,605		154,085		15,365		1,014,936
Criticized (nonaccrual)	9,699		41,949		36,038		12,740		7,803		34,547		9,929		5,512		158,217
Total	$	7,211,782	$	7,563,807	$	9,549,557	$	5,603,650	$	3,663,285	$	7,419,863	$	12,520,741	$	193,952	$	53,726,637
Total loans held-for-investment gross write-offs (2)	$	29	$	50,973	$	17,137	$	11,119	$	1,568	$	3,025	$	27,989	$	5	$	111,845

	December 31, 2023
	Term Loans by Origination Year
($ in thousands)	2023		2022		2021		2020		2019		Prior		Revolving Loans			Revolving Loans Converted to Term Loans (1)		Total
Commercial:
C&I:
Pass	$	2,314,463	$	1,628,560	$	1,296,936	$	331,982	$	245,173	$	164,159	$	10,053,757		$	20,143	$	16,055,173
Criticized (accrual)	105,119		67,899		120,574		15,064		40,920		22,098		117,196			—		488,870
Criticized (nonaccrual)	2,104		7,916		131		4,819		2,979		18,137		950			—		37,036
Total C&I	2,421,686		1,704,375		1,417,641		351,865		289,072		204,394		10,171,903			20,143		16,581,079
Gross write-offs (2)	350		10,454		424		3,758		9,748		2,648		1,593			—		28,975
CRE:
Pass	2,492,915		4,086,385		2,216,257		1,428,724		1,600,844		2,494,382		92,851			62,771		14,475,129
Criticized (accrual)	36,855		34,485		30,336		48,250		24,437		104,340		—			—		278,703
Criticized (nonaccrual)	—		—		—		—		444		22,805		—			—		23,249
Subtotal CRE	2,529,770		4,120,870		2,246,593		1,476,974		1,625,725		2,621,527		92,851			62,771		14,777,081
Gross write-offs (2)	—		—		—		—		—		1,329		—			—		1,329
Multifamily residential:
Pass	665,780		1,481,161		808,333		612,408		498,491		857,713		8,690			1,281		4,933,857
Criticized (accrual)	—		3,356		54,614		—		693		25,974		—			—		84,637
Criticized (nonaccrual)	—		—		—		—		—		4,669		—			—		4,669
Subtotal multifamily residential	665,780		1,484,517		862,947		612,408		499,184		888,356		8,690			1,281		5,023,163
Gross write-offs	—		—		—		—		—		3		—			—		3
Construction and land:
Pass	209,775		280,151		120,724		39,928		808		5,501		6,981		$	—		663,868
Subtotal construction and land	209,775		280,151		120,724		39,928		808		5,501		6,981			—		663,868
Total CRE	3,405,325		5,885,538		3,230,264		2,129,310		2,125,717		3,515,384		108,522			64,052		20,464,112
Total CRE gross write-offs (2)	—		—		—		—		—		1,332		—			—		1,332
Total commercial	$	5,827,011	$	7,589,913	$	4,647,905	$	2,481,175	$	2,414,789	$	3,719,778	$	10,280,425		$	84,195	$	37,045,191
Total commercial gross write-offs (2)	$	350	$	10,454	$	424	$	3,758	$	9,748	$	3,980	$	1,593		$	—	$	30,307

	December 31, 2023
	Term Loans by Origination Year
($ in thousands)	2023		2022		2021		2020		2019		Prior		Revolving Loans		Revolving Loans Converted to Term Loans (1)		Total
Consumer:
Residential mortgage:
Single-family residential:
Pass (3)	$	3,188,830	$	3,340,789	$	2,279,802	$	1,594,525	$	980,686	$	1,959,974	$	—	$	—	$	13,344,606
Criticized (accrual)	2,680		4,471		566		1,440		1,503		4,167		—		—		14,827
Criticized (nonaccrual) (3)	4,466		837		3,902		2,081		3,626		8,715		—		—		23,627
Subtotal single-family residential mortgage	3,195,976		3,346,097		2,284,270		1,598,046		985,815		1,972,856		—		—		13,383,060
HELOCs:
Pass	3,641		3,882		1,734		3,153		729		9,251		1,551,074		126,280		1,699,744
Criticized (accrual)	565		1,219		1,872		101		185		1,470		2,548		1,089		9,049
Criticized (nonaccrual)	815		856		413		72		584		6,863		279		3,529		13,411
Subtotal HELOCs	5,021		5,957		4,019		3,326		1,498		17,584		1,553,901		130,898		1,722,204
Gross write-offs (2)	—		—		—		—		—		41		—		6		47
Total residential mortgage	3,200,997		3,352,054		2,288,289		1,601,372		987,313		1,990,440		1,553,901		130,898		15,105,264
Total residential mortgage gross write-offs (2)	—		—		—		—		—		41		—		6		47
Other consumer:
Pass	2,286		18,098		135		—		—		13,244		26,432		—		60,195
Criticized (nonaccrual)	—		—		—		—		—		—		132		—		132
Total other consumer	2,286		18,098		135		—		—		13,244		26,564		—		60,327
Total consumer	$	3,203,283	$	3,370,152	$	2,288,424	$	1,601,372	$	987,313	$	2,003,684	$	1,580,465	$	130,898	$	15,165,591
Total consumer gross write-offs (2)	$	—	$	—	$	—	$	—	$	—	$	41	$	—	$	6	$	47
Total by Risk Rating:
Pass	$	8,877,690	$	10,839,026	$	6,723,921	$	4,010,720	$	3,326,731	$	5,504,224	$	11,739,785	$	210,475	$	51,232,572
Criticized (accrual)	145,219		111,430		207,962		64,855		67,738		158,049		119,744		1,089		876,086
Criticized (nonaccrual)	7,385		9,609		4,446		6,972		7,633		61,189		1,361		3,529		102,124
Total	$	9,030,294	$	10,960,065	$	6,936,329	$	4,082,547	$	3,402,102	$	5,723,462	$	11,860,890	$	215,093	$	52,210,782
Total loans held-for-investment gross write-offs (2)	$	350	$	10,454	$	424	$	3,758	$	9,748	$	4,021	$	1,593	$	6	$	30,354

(1)$7 million of total commercial loans, comprised of CRE and C&I revolving loans, were converted to term loans during the year ended December 31, 2024. In comparison, $29 million and $26 million of total commercial loans, primarily comprised of CRE revolving loans, were converted to term loans during the years ended December 31, 2023 and 2022, respectively. During the years ended December 31, 2024 and 2023, respectively, $22 million and $44 million of total consumer loans, comprised of HELOCs, were converted to term loans. For the year ended December 31, 2022, no consumer loans were converted to term loans.

(2)Excludes gross write-offs associated with loans the Company sold or settled.

(3)As of each of December 31, 2024 and 2023, $1 million of nonaccrual loans whose payments were guaranteed by the Federal Housing Administration were classified with a “Pass” rating.

Nonaccrual and Past Due Loans

Loans that are 90 or more days past due are generally placed on nonaccrual status, unless the loan is well-collateralized and in the process of collection. Loans that are less than 90 days past due but have identified deficiencies, such as when the full collection of principal or interest becomes uncertain, are also placed on nonaccrual status. The following tables present the aging analysis of loans held-for-investment as of December 31, 2024 and 2023:

	December 31, 2024
($ in thousands)	Current Accruing Loans		Accruing Loans 30-59 Days Past Due		Accruing Loans 60-89 Days Past Due		Total Accruing Past Due Loans		Total Nonaccrual Loans		Total Loans
Commercial:
C&I	$	17,288,138	$	5,690	$	17,165	$	22,855	$	86,165	$	17,397,158
CRE:
CRE	14,647,270		3,755		1,885		5,640		2,430		14,655,340
Multifamily residential	4,947,939		653		278		931		4,572		4,953,442
Construction and land	653,919		927		—		927		11,316		666,162
Total CRE	20,249,128		5,335		2,163		7,498		18,318		20,274,944
Total commercial	37,537,266		11,025		19,328		30,353		104,483		37,672,102
Consumer:
Residential mortgage:
Single-family residential	14,088,086		32,841		22,096		54,937		32,423		14,175,446
HELOCs	1,770,218		11,396		7,968		19,364		22,046		1,811,628
Total residential mortgage	15,858,304		44,237		30,064		74,301		54,469		15,987,074
Other consumer	67,288		92		15		107		66		67,461
Total consumer	15,925,592		44,329		30,079		74,408		54,535		16,054,535
Total	$	53,462,858	$	55,354	$	49,407	$	104,761	$	159,018	$	53,726,637

	December 31, 2023
($ in thousands)	Current Accruing Loans		Accruing Loans 30-59 Days Past Due		Accruing Loans 60-89 Days Past Due		Total Accruing Past Due Loans		Total Nonaccrual Loans		Total Loans
Commercial:
C&I	$	16,508,394	$	28,550	$	7,099	$	35,649	$	37,036	$	16,581,079
CRE:
CRE	14,750,315		1,719		1,798		3,517		23,249		14,777,081
Multifamily residential	5,017,897		597		—		597		4,669		5,023,163
Construction and land	650,617		13,251		—		13,251		—		663,868
Total CRE	20,418,829		15,567		1,798		17,365		27,918		20,464,112
Total commercial	36,927,223		44,117		8,897		53,014		64,954		37,045,191
Consumer:
Residential mortgage:
Single-family residential	13,313,455		29,285		15,943		45,228		24,377		13,383,060
HELOCs	1,687,301		12,266		9,226		21,492		13,411		1,722,204
Total residential mortgage	15,000,756		41,551		25,169		66,720		37,788		15,105,264
Other consumer	56,930		3,123		142		3,265		132		60,327
Total consumer	15,057,686		44,674		25,311		69,985		37,920		15,165,591
Total	$	51,984,909	$	88,791	$	34,208	$	122,999	$	102,874	$	52,210,782

The following table presents the amortized cost of loans on nonaccrual status for which there was no related allowance for loan losses as of December 31, 2024 and 2023. Nonaccrual loans may not have an allowance for credit losses if the loan balances are well secured by collateral values and there is no loss expectation.

($ in thousands)	December 31, 2024		December 31, 2023
Commercial:
C&I	$	79,591	$	33,089
CRE	—		22,653
Multifamily residential	4,210		4,235
Construction and land	11,316		—
Total commercial	95,117		59,977
Consumer:
Single-family residential	6,279		4,852
HELOCs	15,380		7,256
Total consumer	21,659		12,108
Total nonaccrual loans with no related allowance for loan losses	$	116,776	$	72,085

Foreclosed Assets

The Company acquires assets from borrowers through loan restructurings, workouts, or foreclosures. Assets acquired may include real properties (e.g., real estate, land, and buildings) and commercial and personal properties. The Company recognizes foreclosed assets upon receiving assets in satisfaction of a loan (e.g., taking legal title or physical possession).

Foreclosed assets, consisting of OREO and other nonperforming assets, are included in Other assets on the Consolidated Balance Sheet. The Company had $35 million of foreclosed assets as of December 31, 2024, compared with $11 million as of December 31, 2023. The Company commences the foreclosure process on consumer mortgage loans after a borrower becomes more than 120 days delinquent in accordance with the Consumer Financial Protection Bureau guidelines. The carrying value of the consumer real estate loans that were in an active or suspended foreclosure process was $16 million and $8 million as of December 31, 2024 and 2023, respectively.

Loan Modifications to Borrowers Experiencing Financial Difficulty

As part of the Company’s loss mitigation efforts, the Company may agree to modify the contractual terms of a loan to assist borrowers experiencing financial difficulty. The Company negotiates loan modifications on a case-by-case basis to achieve mutually agreeable terms that maximize loan collectability and meet the borrower’s financial needs. The Company considers various factors to identify borrowers experiencing financial difficulty. The primary factor for consumer borrowers is delinquency status. For commercial loan borrowers, these factors include credit risk ratings, the probability of loan risk rating downgrades, and overall risk profile changes. The modification may include, but is not limited to, payment delays, interest rate reductions, term extensions, principal forgiveness, or a combination of such modifications. Commercial loan borrowers that require immaterial modifications such as insignificant interest rate changes, short-term extensions (90 days or less) from the original maturity date, or temporary waivers or extensions of financial covenants which would not constitute material credit actions, are generally not considered to be experiencing financial difficulty and are not included in the disclosure. Insignificant payment deferrals (three months or less in the last 12 months) are also not included in the disclosure.

The following tables present the amortized cost of loans that were modified during the years ended December 31, 2024 and 2023 by loan class and modification type:

	Year Ended December 31, 2024
	Modification Type
($ in thousands)	Term Extension		Payment Delay		Combination: Term Extension/ Payment Delay		Combination: Rate Reduction/ Term Extension		Combination: Rate Reduction/ Payment Delay		Total		Modification as a % of Loan Class
Commercial:
C&I	$	57,102	$	26,420	$	—	$	—	$	—	$	83,522	0.48	%
CRE	86,258		—		—		6,052		—		92,310		0.63	%
Total commercial	143,360		26,420		—		6,052		—		175,832
Consumer:
Single-family residential	—		15,397		222		—		140		15,759		0.11	%
HELOCs	—		14,303		—		—		517		14,820		0.82	%
Total consumer	—		29,700		222		—		657		30,579
Total	$	143,360	$	56,120	$	222	$	6,052	$	657	$	206,411

	Year Ended December 31, 2023
	Modification Type
($ in thousands)	Term Extension		Payment Delay		Combination: Term Extension/ Payment Delay		Combination: Rate Reduction/ Term Extension		Combination: Rate Reduction/ Payment Delay		Total		Modification as a % of Loan Class
Commercial:
C&I	$	62,704	$	6,842	$	—	$	—	$	—	$	69,546	0.42	%
CRE	13,939		—		—		32,470		—		46,409		0.31	%
Total commercial	76,643		6,842		—		32,470		—		115,955
Consumer:
Single-family residential	—		10,202		3,967		—		—		14,169		0.11	%
HELOCs	—		3,148		1,170		—		815		5,133		0.30	%
Total consumer	—		13,350		5,137		—		815		19,302
Total	$	76,643	$	20,192	$	5,137	$	32,470	$	815	$	135,257

The following tables present the financial effects of the loan modifications for the years ended December 31, 2024 and 2023 by loan class and modification type:

	Financial Effects of Loan Modifications
	Year Ended December 31, 2024
($ in thousands)	Weighted-Average Interest Rate Reduction		Weighted-Average Term Extension (in years)	Weighted-Average Payment Delay (in years)
Commercial:
C&I	—	%	2.1	1.7
CRE	1.28	%	2.7	—
Consumer:
Single-family residential	1.63	%	10.0	1.3
HELOCs	0.25	%	—	1.7

	Financial Effects of Loan Modifications
	Year Ended December 31, 2023
($ in thousands)	Principal Forgiveness			Weighted-Average Interest Rate Reduction			Weighted-Average Term Extension (in years)	Weighted-Average Payment Delay (in years)
Commercial:
C&I	$	371	(1)	—	%	(1)	1.3	0.9
CRE	—			3.00	%		2.1	—
Consumer:
Single-family residential	—			—	%		9.3	1.8
HELOCs	—			0.11	%		14.2	4.6
Total	$	371

(1)Comprised of C&I loans modified during the year ended December 31, 2023 where the interest rate was waived in addition to principal forgiveness. No recorded investment was outstanding as of December 31, 2023.

A modified loan may become delinquent and may result in a payment default (generally 90 days past due) subsequent to modification. The following tables present information on loans that defaulted during the years ended December 31, 2024 and 2023 that received modifications during the 12 months preceding payment default.

	Loans Modified Subsequently Defaulted During the Year Ended December 31, 2024
($ in thousands)	Term Extension		Payment Delay		Combination: Rate Reduction/ Payment Delay		Combination: Term Extension/ Payment Delay		Total
Commercial:
C&I	$	3,684	$	4,937	$	—	$	—	$	8,621
Total commercial	3,684		4,937		—		—		8,621
Consumer:
Single-family residential	—		10,223		141		2,462		12,826
HELOCs	—		4,690		517		—		5,207
Total consumer	—		14,913		658		2,462		18,033
Total	$	3,684	$	19,850	$	658	$	2,462	$	26,654

	Loans Modified Subsequently Defaulted During the Year Ended December 31, 2023
($ in thousands)	Term Extension		Payment Delay		Combination: Rate Reduction/ Payment Delay		Combination: Term Extension/ Payment Delay		Total
Consumer:
Single-family residential	$	—	$	267	$	—	$	—	$	267
HELOCs	—		749		—		—		749
Total consumer	—		1,016		—		—		1,016
Total	$	—	$	1,016	$	—	$	—	$	1,016

The Company monitors the performance of modified loans to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents the performance of loans that were modified during the years ended December 31, 2024 and 2023, respectively.

	Payment Performance as of December 31, 2024
($ in thousands)	Current		30-89 Days Past Due		90+ Days Past Due		Total
Commercial:
C&I	$	71,324	$	12,198	$	—	$	83,522
CRE	92,310		—		—		92,310
Total commercial	163,634		12,198		—		175,832
Consumer:
Single-family residential	9,082		4,218		2,459		15,759
HELOCs	8,591		3,069		3,160		14,820
Total consumer	17,673		7,287		5,619		30,579
Total	$	181,307	$	19,485	$	5,619	$	206,411

	Payment Performance as of December 31, 2023
($ in thousands)	Current		30-89 Days Past Due		90+ Days Past Due		Total
Commercial:
C&I	$	52,087	$	8,153	$	9,306	$	69,546
CRE	46,409		—		—		46,409
Total commercial	98,496		8,153		9,306		115,955
Consumer:
Single-family residential	11,197		2,425		547		14,169
HELOCs	4,207		177		749		5,133
Total consumer	15,404		2,602		1,296		19,302
Total	$	113,900	$	10,755	$	10,602	$	135,257

As of December 31, 2024 and 2023, commitments to lend additional funds to borrowers whose loans were modified were $10 million and $4 million, respectively.

Troubled Debt Restructurings Prior to the Adoption of ASU 2022-02

Prior to the adoption of ASU 2022-02, the Company accounted for a modification to the contractual terms of a loan that resulted in granting a concession to a borrower experiencing financial difficulties as a TDR. ASU 2022-02 eliminated TDR accounting prospectively for all restructurings occurring on or after January 1, 2023.

The following table presents the additions to TDRs for the year ended December 31, 2022:

	Loans Modified as TDRs During the Year Ended
	December 31, 2022
($ in thousands)	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment (1)		Financial Impact (2)
Commercial:
C&I	7	$	69,050	$	38,415	$	12,638
Total commercial	7	69,050		38,415		12,638
Consumer:
HELOCs	2	662		697		2
Total consumer	2	662		697		2
Total	9	$	69,712	$	39,112	$	12,640

(1)Includes subsequent payments after modification and reflects the balance as of December 31, 2022.

(2)Includes charge-offs and specific reserves recorded since the modification date. Loans modified more than once are reported in the period they were first modified.

The following table presents the TDR post-modification outstanding balances by the primary modification type for the year ended December 31, 2022:

	Modification Type During the Year Ended
	December 31, 2022
($ in thousands)	Principal (1)		Other (2)		Total
Commercial:
C&I	$	24,238	$	14,177	$	38,415
Total commercial	24,238		14,177		38,415
Consumer:
HELOCs	697		—		697
Total consumer	697		—		697
Total	$	24,935	$	14,177	$	39,112

(1)Includes forbearance payments, term extensions and principal deferments that modify the terms of the loan from principal and interest payments to interest payments only.

(2)Includes primarily funding to secure additional collateral and provide liquidity to collateral-dependent and term extension to C&I loans.

After a loan is modified as a TDR, the Company continues to monitor its performance under its most recent restructured terms. A TDR may become delinquent and result in payment default (generally 90 days past due) subsequent to restructuring. The following table presents information on loans that entered into default during the year ended December 31, 2022 that were modified as TDRs during the 12 months preceding payment default:

	Loans Modified as TDRs that Subsequently During the Year Ended December 31, 2022
($ in thousands)	Number of Loans	Recorded Investment
Commercial:
C&I	2	$	10,296
Total commercial	2	10,296
Total	2	$	10,296

As of December 31, 2022, the remaining commitments to lend to borrowers whose terms of their outstanding owed balances were modified as TDRs was $16 million.

Allowance for Credit Losses

The Company has a current expected credit losses (“CECL”) framework for all financial assets measured at amortized cost and certain off-balance sheet credit exposures. The Company’s allowance for credit losses, which includes both the allowance for loan losses and the allowance for unfunded credit commitments, is calculated with the objective of maintaining a reserve sufficient to absorb losses inherent in our credit portfolios. The measurement of the allowance for credit losses is based on management’s best estimate of lifetime expected credit losses, periodic evaluation of the loan portfolio, lending-related commitments and other relevant factors.

The allowance for credit losses is deducted from the amortized cost basis of a financial asset or a group of financial assets so that the balance sheet reflects the net amount the Company expects to collect. Amortized cost is the principal balance outstanding, net of purchase premiums and discounts, deferred fees and costs, and escrow advances. Subsequent changes in expected credit losses are recognized in net income as a provision for, or a reversal of, credit loss expense.

The allowance for credit losses estimation involves procedures to consider the unique risk characteristics of the portfolio segments. The majority of the Company’s credit exposures that share risk characteristics with other similar exposures are collectively evaluated. The collectively evaluated loans include performing loans and unfunded credit commitments. If an exposure does not share risk characteristics with other exposures, the Company generally estimates expected credit losses on an individual basis.

Allowance for Collectively Evaluated Loans

The allowance for collectively evaluated loans consists of a quantitative component that assesses the different risk factors considered in our models and a qualitative component that considers risk factors external to the models. Each of these components are described below.

Quantitative Component — The Company applies quantitative methods to estimate loan losses by considering a variety of factors such as historical loss experience, the current credit quality of the portfolio, and an economic outlook over the life of the loan. The Company incorporates forward-looking information using macroeconomic scenarios which include variables that are considered key drivers of increases and decreases in credit losses. The Company utilizes a probability-weighted, multiple-scenario forecast approach. These scenarios may consist of a base forecast representing management's view of the most likely outcome, combined with downside or upside scenarios reflecting possible worsening or improving economic conditions. The quantitative models incorporate a probability-weighted calculation of these macroeconomic scenarios over a reasonable and supportable forecast period. If the life of the loans extends beyond the reasonable and supportable forecast period, the Company will consider historical experience or long-run macroeconomic trends over the remaining life of the loans to estimate the allowance for loan losses.

There were no changes to the reasonable and supportable forecast period, except to the C&I segment, and no changes to the reversion to the historical loss experience method in 2024 and 2023. The reasonable and supportable forecast period for the C&I segment changed from 11 quarters to eight quarters due to model redevelopment during the third quarter of 2023.

The following table provides key credit risk characteristics and macroeconomic variables that the Company uses to estimate the expected credit losses by portfolio segment:

Portfolio Segment	Risk Characteristics	Macroeconomic Variables
C&I	Age percentage, size at origination, delinquency status, sector and risk rating	Unemployment rate, Gross Domestic Product (“GDP”), and U.S. Treasury rates
CRE, Multifamily residential, and Construction and land	Delinquency status, maturity date, collateral value, property type, and geographic location	Unemployment rate, GDP, and U.S. Treasury rates
Single-family residential and HELOCs	FICO score, delinquency status, maturity date, collateral value, and geographic location	Unemployment rate, GDP, and Home Price Indices
Other consumer	Loss rate approach	Immaterial - Macroeconomic variables are included in the qualitative estimate.

Quantitative Component — Allowance for Loan Losses for the Commercial Loan Portfolio

The Company’s C&I lifetime loss rate model estimates the loss rate expected over the life of a loan. This loss rate is applied to the amortized cost basis, excluding accrued interest receivable, to determine expected credit losses. The lifetime loss rate model’s reasonable and supportable period spans eight quarters, thereafter immediately reverting to the historical average loss rate, expressed through the loan-level lifetime loss rate.

To generate estimates of expected loss at the loan level for CRE, multifamily residential, and construction and land loans, projected probabilities of default (“PDs”) and loss given defaults (“LGDs”) are applied to the estimated exposure at default, considering the term and payment structure of the loan. The forecast of future economic conditions returns to long-run historical economic trends within the reasonable and supportable period.

To estimate the life of a loan under both models, the contractual term of the loan is adjusted for estimated prepayments based on historical prepayment experience.

Quantitative Component — Allowance for Loan Losses for the Consumer Loan Portfolio

For single-family residential and HELOC loans, projected PDs and LGDs are applied to the estimated exposure at default, considering the term and payment structure of the loan, to generate estimates of expected loss at the loan level. The forecast of future economic conditions returns to long-run historical economic trends after the reasonable and supportable period. To estimate the life of a loan for the single-family residential and HELOC loan portfolios, the contractual term of the loan is adjusted for estimated prepayments based on historical prepayment experience. For other consumer loans, the Company uses a loss rate approach.

Qualitative Component — The Company considers the following qualitative factors in the determination of the collectively evaluated allowance if these factors have not already been captured by the quantitative model. Such qualitative factors may include, but are not limited to:

–loan growth trends;

–the volume and severity of past due financial assets, and criticized or adversely classified financial assets;

–the Company’s lending policies and procedures, including changes in lending strategies, underwriting standards, collection, write-off and recovery practices;

–knowledge of a borrower’s operations;

–the quality of the Company’s credit review system;

–the experience, ability and depth of the Company’s management and associates;

–the effect of other external factors such as the regulatory and legal environments, or changes in technology;

–actual and expected changes in international, national, regional, and local economic and business conditions in which the Company operates; and

–risk factors in certain industry sectors not captured by the quantitative models.

The magnitude of the impact of these factors on the Company’s qualitative assessment of the allowance for credit losses changes from period to period according to changes made by management in its assessment of these factors. The extent to which these factors change may be dependent on whether they are already reflected in quantitative loss estimates during the current period and the extent to which changes in these factors diverge from period to period.

While the Company’s allowance methodologies strive to reflect all relevant credit risk factors, there continues to be uncertainty associated with, but not limited to, potential imprecision in the estimation process due to the inherent time lag of obtaining information and normal variations between expected and actual outcomes. The Company may hold additional qualitative reserves that are designed to provide coverage for losses attributable to such risk.

Allowance for Individually Evaluated Loans

When a loan no longer shares similar risk characteristics with other loans, such as in the case of certain nonaccrual loans, the Company estimates the allowance for loan losses on an individual loan basis. The allowance for loan losses for individually evaluated loans is measured as the difference between the recorded value of the loans and their fair value. For loans evaluated individually, the Company uses one of three different asset valuation measurement methods: (1) the fair value of collateral less costs to sell; (2) the present value of expected future cash flows; or (3) the loan's observable market price. If an individually evaluated loan is determined to be collateral dependent, the Company applies the fair value of the collateral less costs to sell method. If an individually evaluated loan is determined not to be collateral dependent, the Company uses the present value of future cash flows or the observable market value of the loan.

•Collateral-Dependent Loans — The allowance of a collateral-dependent loan is limited to the difference between the recorded value and fair value of the collateral less cost of disposal or sale. As of December 31, 2024, collateral-dependent commercial and consumer loans totaled $45 million and $23 million, respectively. In comparison, collateral-dependent commercial and consumer loans totaled $30 million and $12 million, respectively, as of December 31, 2023. The Company's collateral-dependent loans were secured by real estate. As of both December 31, 2024 and 2023, the collateral value of the properties securing the collateral-dependent loans, net of selling costs, exceeded the recorded value of the majority of the loans.

The following tables summarize the activity in the allowance for loan losses by portfolio segments for the years ended December 31, 2024, 2023 and 2022:

		Year Ended December 31, 2024
		Commercial								Consumer
				CRE						Residential Mortgage
($ in thousands)		C&I		CRE		Multifamily Residential		Construction and Land		Single-Family Residential		HELOCs		Other Consumer		Total
Allowance for loan losses, beginning of period		$	392,685	$	170,592	$	34,375	$	10,469	$	55,018	$	3,947	$	1,657	$	668,743
Provision for (reversal of) credit losses on loans	(a)	110,791		61,908		(2,684)		9,114		(10,176)		(873)		4,096		172,176
Gross charge-offs		(125,413)		(14,236)		(10)		(2,289)		(35)		(15)		(4,259)		(146,257)
Gross recoveries		6,505		413		436		203		9		73		—		7,639
Total net (charge-offs) recoveries		(118,908)		(13,823)		426		(2,086)		(26)		58		(4,259)		(138,618)
Foreign currency translation adjustment		(249)		—		—		—		—		—		—		(249)
Allowance for loan losses, end of period		$	384,319	$	218,677	$	32,117	$	17,497	$	44,816	$	3,132	$	1,494	$	702,052

		Year Ended December 31, 2023
		Commercial								Consumer
				CRE						Residential Mortgage
($ in thousands)		C&I		CRE		Multifamily Residential		Construction and Land		Single-Family Residential		HELOCs		Other Consumer		Total
Allowance for loan losses, December 31, 2022		$	371,700	$	149,864	$	23,373	$	9,109	$	35,564	$	4,475	$	1,560	$	595,645
Impact of ASU 2022-02 adoption		5,683		337		6		—		1		1		—		6,028
Allowance for loan losses, beginning of period		377,383		150,201		23,379		9,109		35,565		4,476		1,560		601,673
Provision for (reversal of) credit losses on loans	(a)	45,319		27,007		10,454		11,537		19,384		(424)		294		113,571
Gross charge-offs		(36,573)		(7,048)		(3)		(10,413)		—		(138)		(197)		(54,372)
Gross recoveries		6,803		432		545		236		69		33		—		8,118
Total net (charge-offs) recoveries		(29,770)		(6,616)		542		(10,177)		69		(105)		(197)		(46,254)
Foreign currency translation adjustment		(247)		—		—		—		—		—		—		(247)
Allowance for loan losses, end of period		$	392,685	$	170,592	$	34,375	$	10,469	$	55,018	$	3,947	$	1,657	$	668,743

		Year Ended December 31, 2022
		Commercial								Consumer
				CRE						Residential Mortgage
($ in thousands)		C&I		CRE		Multifamily Residential		Construction and Land		Single-Family Residential		HELOCs		Other Consumer		Total
Allowance for loan losses, beginning of period		$	338,252	$	150,940	$	14,400	$	15,468	$	17,160	$	3,435	$	1,924	$	541,579
Provision for (reversal of) credit losses on loans	(a)	37,604		8,212		15,651		(6,433)		18,867		1,124		(258)		74,767
Gross charge-offs		(18,738)		(10,871)		(7237)		—		(775)		(193)		(106)		(37,920)
Gross recoveries		16,824		1,583		559		74		312		109		—		19,461
Total net (charge-offs) recoveries		(1,914)		(9,288)		(6,678)		74		(463)		(84)		(106)		(18,459)
Foreign currency translation adjustment		(2,242)		—		—		—		—		—		—		(2,242)
Allowance for loan losses, end of period		$	371,700	$	149,864	$	23,373	$	9,109	$	35,564	$	4,475	$	1,560	$	595,645

In addition to the allowance for loan losses, the Company maintains an allowance for unfunded credit commitments. The Company has three general areas for which it provides the allowance for unfunded credit commitments: (1) recourse obligations for loans sold, (2) letters of credit, and (3) unfunded lending commitments. The allowance for unfunded credit commitments is maintained at a level that management believes to be sufficient to absorb estimated expected credit losses related to unfunded credit facilities. See Note 12 — Commitments and Contingencies to the Consolidated Financial Statements in this Form 10-K for additional information related to unfunded credit commitments. The following table summarizes the activity in the allowance for unfunded credit commitments for the years ended December 31, 2024, 2023 and 2022:

		Year Ended December 31,
($ in thousands)		2024		2023		2022
Unfunded credit facilities
Allowance for unfunded credit commitments, beginning of period		$	37,699	$	26,264	$	27,514
Provision for (reversal of) credit losses on unfunded credit commitments	(b)	1,824		11,429		(1,267)
Foreign currency translation adjustments		3		6		17
Allowance for unfunded credit commitments, end of period		39,526		37,699		26,264
Provision for credit losses	(a) + (b)	$	174,000	$	125,000	$	73,500

The allowance for credit losses was $742 million as of December 31, 2024, compared with $706 million as of December 31, 2023. The increase in the allowance for credit losses was primarily driven by the Company’s net loan growth, qualitative risk assessment and economic outlook that reflected continued caution regarding inflation, the high-interest rate environment and certain CRE markets.

The Company considers multiple economic scenarios to develop the estimate of the allowance for loan losses. The scenarios may consist of a baseline forecast representing management's view of the most likely outcome, and downside or upside scenarios that reflect possible worsening or improving economic conditions. As of December 31, 2024, the Company assigned the same weightings to its baseline, while slightly higher and lower weightings were applied to the upside and downside scenarios, respectively, as compared with December 31, 2023. The current baseline economic forecast continues to reflect key risks such as still-elevated interest rates, inflation, concerns over global conflicts and oil prices. Compared to December 2023, the December 2024 baseline forecast for GDP growth showed improvement in the near-term (full year 2025) and worsening for longer-term (2026 and beyond). The unemployment rate has remained low with the December 2024 forecast showing a small uptick beginning in 2026, compared with the December 2023 forecast for the same periods. The downside scenario assumed the economy falls into recession in the first quarter of 2025 as a result of tariffs, rising inflation, high interest rates, global and domestic political tensions, and reduced credit availability. The upside scenario assumed a more optimistic economic outlook, including stronger growth, stable financial market, and full employment starting in the first quarter of 2025.

Loan Transfers, Sales and Purchases

The Company’s primary business focus is on directly originated loans. The Company also purchases loans from and participates in loan financing with other banks. In the normal course of business, the Company also provides other financial institutions with the ability to participate in commercial loans that it originates, by selling loans to such institutions. Purchased loans may be transferred from held-for-investment to held-for-sale, and write-downs to allowance for loan losses are recorded, when appropriate. The following tables provide information on the carrying value of loans transferred, sold and purchased for the held-for-investment portfolio, during the years ended December 31, 2024, 2023 and 2022:

	Year Ended December 31, 2024
	Commercial						Consumer
			CRE				Residential Mortgage
($ in thousands)	C&I		CRE		Construction and Land		Single-Family Residential		Total
Loans transferred from held-for-investment to held-for-sale (1)	$	649,187	$	9,417	$	718	$	—	$	659,322
Sales (2)(3)	$	650,256	$	9,417	$	718	$	2,997	$	663,388
Purchases (4)	$	612,364	$	—	$	—	$	387,629	$	999,993

	Year Ended December 31, 2023
	Commercial						Consumer
			CRE				Residential Mortgage
($ in thousands)	C&I		CRE		Construction and Land		Single-Family Residential		Total
Loans transferred from held-for-investment to held-for-sale (1)	$	647,943	$	83,282	$	8,154	$	—	$	739,379
Sales (2)(3)	$	674,919	$	86,749	$	8,154	$	—	$	769,822
Purchases (4)	$	106,493	$	—	$	—	$	493,282	$	599,775

	Year Ended December 31, 2022
	Commercial						Consumer
			CRE				Residential Mortgage
($ in thousands)	C&I		CRE		Construction and Land		Single-Family Residential		Total
Loans transferred from held-for-investment to held-for-sale (1)	$	530,524	$	88,075	$	—	$	5,178	$	623,777
Loans transferred from held-for-sale to held-for-investment	$	—	$	—	$	—	$	631	$	631
Sales (2)(3)	$	501,289	$	88,075	$	—	$	6,403	$	595,767
Purchases (4)	$	363,549	$	—	$	—	$	293,721	$	657,270

(1)Includes write-downs of $2 million, $5 million and $3 million to the allowance for loan losses related to loans transferred from held-for-investment to held-for-sale for the years ended December 31, 2024, 2023 and 2022, respectively.

(2)Includes originated loans sold of $508 million, $513 million and $388 million for the years ended December 31, 2024, 2023 and 2022, respectively. Originated loans sold consisted primarily of C&I loans for the year ended December 31, 2024 and C&I and CRE loans for the years ended December 31, 2023 and 2022.

(3)Includes $156 million, $256 million and $208 million of purchased loans sold in the secondary market for the years ended December 31, 2024, 2023 and 2022, respectively.

(4)C&I loan purchases were comprised of syndicated C&I term loans.