Loans Receivable and Allowance for Credit Losses

6 Months Ended

Jun. 30, 2025

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 June 30, 2025 and December 31, 2024:

($ in thousands)	June 30, 2025		December 31, 2024
Commercial:
C&I	$	17,822,881	$	17,397,158
CRE:
CRE	14,978,775		14,655,340
Multifamily residential	4,978,915		4,953,442
Construction and land	709,713		666,162
Total CRE	20,667,403		20,274,944
Total commercial	38,490,284		37,672,102
Consumer:
Residential mortgage:
Single-family residential	14,569,997		14,175,446
Home equity lines of credit (“HELOCs”)	1,850,965		1,811,628
Total residential mortgage	16,420,962		15,987,074
Other consumer	49,938		67,461
Total consumer	16,470,900		16,054,535
Total loans held-for-investment (1)	$	54,961,184	$	53,726,637
Allowance for loan losses	(760,416)		(702,052)
Loans held-for-investment, net (1)	$	54,200,768	$	53,024,585

(1)Includes $74 million and $46 million of net deferred loan fees and net unamortized premiums as of June 30, 2025 and December 31, 2024, respectively.

Accrued interest receivable on loans held-for-investment was $250 million and $255 million as of June 30, 2025 and December 31, 2024, respectively, and was included in Other assets on the Consolidated Balance Sheet. The interest income reversed was insignificant for each of the three and six months ended June 30, 2025 and 2024. For the Company’s accounting policy on accrued interest receivable related to loans held-for-investment, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Loans Held-for-Investment to the Consolidated Financial Statements of the Company’s 2024 Form 10-K. The Company may occasionally have loans held-for-sale. For the Company’s accounting policy on loans held-for-sale, refer to Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Loans Held-for-Sale to the Consolidated Financial Statements in the Company’s 2024 Form 10-K.

The Company’s FRB and FHLB borrowings are primarily secured by loans held-for-investment. Loans held-for-investment totaling $40.2 billion and $38.2 billion, respectively, were pledged to secure borrowings and provide additional borrowing capacity as of June 30, 2025 and December 31, 2024.

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 the periods presented. The vintage year is the year of loan origination, renewal or major modification. Gross write-offs in the following tables are for the six months ended June 30, 2025, and year ended December 31, 2024. Revolving loans that are converted to term loans presented in the tables below are excluded from the term loans by vintage year columns.

	June 30, 2025
	Term Loans by Origination Year
($ in thousands)	2025		2024		2023		2022		2021		Prior		Revolving Loans		Revolving Loans Converted to Term Loans (1)		Total
Commercial:
C&I:
Pass	$	1,344,664	$	2,304,371	$	1,135,391	$	814,316	$	540,556	$	462,424	$	10,819,790	$	36,328	$	17,457,840
Criticized (accrual)	9		20,283		32,986		41,686		62,727		23,991		111,465		—		293,147
Criticized (nonaccrual)	3,197		236		26,920		7,018		12,526		21,959		38		—		71,894
Total C&I	1,347,870		2,324,890		1,195,297		863,020		615,809		508,374		10,931,293		36,328		17,822,881
Gross write-offs (2)	—		132		40		3,153		—		2,599		—		—		5,924
CRE:
Pass	1,100,578		1,592,742		2,161,155		3,462,580		1,844,573		4,020,815		101,768		48,119		14,332,330
Criticized (accrual)	28,712		37,927		103,691		160,291		75,066		231,665		—		—		637,352
Criticized (nonaccrual)	4,018		—		—		—		836		4,239		—		—		9,093
Subtotal CRE	1,133,308		1,630,669		2,264,846		3,622,871		1,920,475		4,256,719		101,768		48,119		14,978,775
Gross write-offs (2)	8,232		—		—		—		19		13,992		—		—		22,243
Multifamily residential:
Pass	352,254		353,528		495,975		1,244,339		705,084		1,743,054		25,587		1,239		4,921,060
Criticized (accrual)	—		—		—		49,009		—		8,519		—		—		57,528
Criticized (nonaccrual)	—		—		—		—		—		327		—		—		327
Subtotal multifamily residential	352,254		353,528		495,975		1,293,348		705,084		1,751,900		25,587		1,239		4,978,915
Gross write-offs	—		—		—		—		—		7		—		—		7
Construction and land:
Pass	70,411		104,486		318,330		158,498		21,091		3,471		8,022		—		684,309
Criticized (accrual)	—		8,897		—		16,507		—		—		—		—		25,404
Subtotal construction and land	70,411		113,383		318,330		175,005		21,091		3,471		8,022		—		709,713
Total CRE	1,555,973		2,097,580		3,079,151		5,091,224		2,646,650		6,012,090		135,377		49,358		20,667,403
Total CRE gross write-offs (2)	8,232		—		—		—		19		13,999		—		—		22,250
Total commercial	$	2,903,843	$	4,422,470	$	4,274,448	$	5,954,244	$	3,262,459	$	6,520,464	$	11,066,670	$	85,686	$	38,490,284
Total commercial gross write-offs (2)	$	8,232	$	132	$	40	$	3,153	$	19	$	16,598	$	—	$	—	$	28,174

	June 30, 2025
	Term Loans by Origination Year
($ in thousands)	2025		2024		2023		2022		2021		Prior		Revolving Loans		Revolving Loans Converted to Term Loans (1)		Total
Consumer:
Residential mortgage:
Single-family residential:
Pass (3)	$	1,401,612	$	2,098,791	$	2,563,776	$	2,943,381	$	1,982,084	$	3,523,057	$	—	$	—	$	14,512,701
Criticized (accrual)	1,490		1,466		3,963		8,417		2,215		7,494		—		—		25,045
Criticized (nonaccrual) (3)	843		4,655		10,275		1,160		1,009		14,309		—		—		32,251
Subtotal single-family residential mortgage	1,403,945		2,104,912		2,578,014		2,952,958		1,985,308		3,544,860		—		—		14,569,997
Gross write-offs (2)	—		9		—		—		—		—		—		—		9
HELOCs:
Pass	4,433		6,438		3,496		8,277		7,538		19,853		1,687,628		82,589		1,820,252
Criticized (accrual)	—		2,019		501		97		503		2,001		448		388		5,957
Criticized (nonaccrual)	517		2,273		712		3,183		2,187		10,232		—		5,652		24,756
Subtotal HELOCs	4,950		10,730		4,709		11,557		10,228		32,086		1,688,076		88,629		1,850,965
Total residential mortgage	1,408,895		2,115,642		2,582,723		2,964,515		1,995,536		3,576,946		1,688,076		88,629		16,420,962
Total residential mortgage gross write-offs (2)	—		9		—		—		—		—		—		—		9
Other consumer:
Pass	4,052		79		—		23,527		130		6,793		15,219		—		49,800
Criticized (accrual)	1		—		—		—		—		—		—		—		1
Criticized (nonaccrual)	1		—		49		—		—		—		87		—		137
Total other consumer	4,054		79		49		23,527		130		6,793		15,306		—		49,938
Total consumer	$	1,412,949	$	2,115,721	$	2,582,772	$	2,988,042	$	1,995,666	$	3,583,739	$	1,703,382	$	88,629	$	16,470,900
Total consumer gross write-offs (2)	$	—	$	9	$	—	$	—	$	—	$	—	$	—	$	—	$	9
Total loans held-for-investment:
Pass	$	4,278,004	$	6,460,435	$	6,678,123	$	8,654,918	$	5,101,056	$	9,779,467	$	12,658,014	$	168,275	$	53,778,292
Criticized (accrual)	30,212		70,592		141,141		276,007		140,511		273,670		111,913		388		1,044,434
Criticized (nonaccrual)	8,576		7,164		37,956		11,361		16,558		51,066		125		5,652		138,458
Total	$	4,316,792	$	6,538,191	$	6,857,220	$	8,942,286	$	5,258,125	$	10,104,203	$	12,770,052	$	174,315	$	54,961,184
Total loans held-for-investment gross write-offs (2)	$	8,232	$	141	$	40	$	3,153	$	19	$	16,598	$	—	$	—	$	28,183

	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

(1)There were no loans that were converted to term loans during the three months ended June 30, 2025. $16 million of total commercial loans, comprised of C&I revolving loans, were converted to term loans during the six months ended June 30, 2025. In comparison, $1 million and $8 million of total commercial loans, comprised of C&I and CRE revolving loans, converted to term loans during the three and six months ended June 30, 2024, respectively.

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

(3)$1 million of nonaccrual loans whose payments were guaranteed by the Federal Housing Administration were classified with a “Pass” rating as of both June 30, 2025 and December 31, 2024.

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 June 30, 2025 and December 31, 2024:

	June 30, 2025
($ 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	$	17,737,893	$	5,711	$	7,383	$	13,094	$	71,894	$	17,822,881
CRE:
CRE	14,938,724		15,500		15,458		30,958		9,093		14,978,775
Multifamily residential	4,977,011		621		956		1,577		327		4,978,915
Construction and land	700,816		—		8,897		8,897		—		709,713
Total CRE	20,616,551		16,121		25,311		41,432		9,420		20,667,403
Total commercial	38,354,444		21,832		32,694		54,526		81,314		38,490,284
Consumer:
Residential mortgage:
Single-family residential	14,459,445		52,101		25,204		77,305		33,247		14,569,997
HELOCs	1,806,711		14,821		4,677		19,498		24,756		1,850,965
Total residential mortgage	16,266,156		66,922		29,881		96,803		58,003		16,420,962
Other consumer	49,679		53		69		122		137		49,938
Total consumer	16,315,835		66,975		29,950		96,925		58,140		16,470,900
Total	$	54,670,279	$	88,807	$	62,644	$	151,451	$	139,454	$	54,961,184

	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

The following table presents the amortized cost of loans on nonaccrual status for which there was no related allowance for loan losses as of both June 30, 2025 and December 31, 2024. 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)	June 30, 2025		December 31, 2024
Commercial:
C&I	$	35,707	$	79,591
CRE	7,866		—
Multifamily residential	—		4,210
Construction and land	—		11,316
Total commercial	43,573		95,117
Consumer:
Single-family residential	7,652		6,279
HELOCs	7,248		15,380
Total consumer	14,900		21,659
Total nonaccrual loans with no related allowance for loan losses	$	58,473	$	116,776

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 $32 million of foreclosed assets as of June 30, 2025, compared with $35 million as of December 31, 2024. 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 $24 million and $16 million as of June 30, 2025 and December 31, 2024, 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 loan 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 three and six months ended June 30, 2025 and 2024 by loan class and modification type:

	Three Months Ended June 30, 2025
	Modification Type
($ in thousands)	Interest Rate Reduction		Term Extension		Payment Delay		Combination: Term Extension/ Payment Delay		Combination: Rate Reduction/ Payment Delay		Combination: Rate Reduction/ Term Extension/ Payment Delay		Total		Modification as a % of Loan Class
Commercial:
C&I	$	6,058	$	74,767	$	2,974	$	6,966	$	19,574	$	—	$	110,339	0.62	%
CRE	—		152,298		—		—		—		—		152,298		0.74	%
Total commercial	6,058		227,065		2,974		6,966		19,574		—		262,637		0.68	%
Consumer:
Single-family residential	—		—		6,632		207		—		—		6,839		0.05	%
HELOCs	—		—		3,943		—		426		421		4,790		0.26	%
Total consumer	—		—		10,575		207		426		421		11,629		0.07	%
Total	$	6,058	$	227,065	$	13,549	$	7,173	$	20,000	$	421	$	274,266	0.50	%

	Three Months Ended June 30, 2024
	Modification Type
($ in thousands)	Term Extension		Payment Delay		Combination: Term Extension/ Payment Delay		Combination: Rate Reduction/ Payment Delay		Total		Modification as a % of Loan Class
Commercial:
C&I	$	11,901	$	5,658	$	2,951	$	—	$	20,510	0.12	%
CRE	—		—		—		11,020		11,020		0.05	%
Total commercial	11,901		5,658		2,951		11,020		31,530		0.08	%
Consumer:
Single-family residential	—		4,791		—		—		4,791		0.03	%
HELOCs	—		2,053		—		—		2,053		0.12	%
Other consumer	3,000		—		—		—		3,000		5.34	%
Total consumer	3,000		6,844		—		—		9,844		0.06	%
Total	$	14,901	$	12,502	$	2,951	$	11,020	$	41,374	0.08	%

	Six Months Ended June 30, 2025
	Modification Type
($ in thousands)	Interest Rate Reduction		Term Extension		Payment Delay		Combination: Term Extension/ Payment Delay		Combination: Rate Reduction/ Payment Delay		Combination: Rate Reduction/ Term Extension/ Payment Delay		Total		Modification as a % of Loan Class
Commercial:
C&I	$	6,058	$	76,231	$	2,974	$	29,167	$	19,574	$	—	$	134,004	0.75	%
CRE	—		170,527		—		—		—		—		170,527		0.83	%
Total commercial	6,058		246,758		2,974		29,167		19,574		—		304,531		0.79	%
Consumer:
Residential mortgage:
Single-family residential	—		—		10,699		295		—		—		10,994		0.08	%
HELOCs	—		—		4,918		906		426		421		6,671		0.36	%
Total consumer	—		—		15,617		1,201		426		421		17,665		0.11	%
Total	$	6,058	$	246,758	$	18,591	$	30,368	$	20,000	$	421	$	322,196	0.59	%

	Six Months Ended June 30, 2024
	Modification Type
($ in thousands)	Term Extension		Payment Delay		Combination: Term Extension/ Payment Delay		Combination: Rate Reduction/ Payment Delay		Total		Modification as a % of Loan Class
Commercial:
C&I	$	15,601	$	25,886	$	2,951	$	—	$	44,438	0.26	%
CRE	24,321		—		—		30,570		54,891		0.27	%
Total commercial	39,922		25,886		2,951		30,570		99,329		0.27	%
Consumer:
Single-family residential	—		8,528		—		—		8,528		0.06	%
HELOCs	—		6,881		—		517		7,398		0.42	%
Other consumer	3,000		—		—		—		3,000		5.34	%
Total consumer	3,000		15,409		—		517		18,926		0.12	%
Total	$	42,922	$	41,295	$	2,951	$	31,087	$	118,255	0.22	%

The following table presents the financial effects of the loan modifications for the three and six months ended June 30, 2025 and 2024 by loan class and modification type:

	Financial Effects of Loan Modifications for the Three Months Ended June 30,
	2025				2024
($ in thousands)	Weighted-Average Interest Rate Reduction		Weighted-Average Term Extension (in years)	Weighted-Average Payment Delay (in years)	Weighted-Average Interest Rate Reduction		Weighted-Average Term Extension (in years)	Weighted-Average Payment Delay (in years)
Commercial:
C&I	3.38	%	0.9	0.7	—	%	2.0	2.0
CRE	—	%	2.8	0.0	2.50	%	0.0	1.2
Consumer:
Single-family residential	—	%	10.0	1.9	—	%	0.0	0.8
HELOCs	0.50	%	10.0	5.1	—	%	0.0	0.7
Other consumer	—	%	0.0	0.0	—	%	0.8	0.0

	Financial Effects of Loan Modifications for the Six Months Ended June 30,
	2025				2024
($ in thousands)	Weighted-Average Interest Rate Reduction		Weighted-Average Term Extension (in years)	Weighted-Average Payment Delay (in years)	Weighted-Average Interest Rate Reduction		Weighted-Average Term Extension (in years)	Weighted-Average Payment Delay (in years)
Commercial:
C&I	3.38	%	1.0	0.8	—	%	2.0	1.5
CRE	—	%	3.0	0.0	2.66	%	1.5	1.0
Consumer:
Single-family residential	—	%	10.0	1.5	—	%	0.0	0.8
HELOCs	0.50	%	15.2	8.0	0.25	%	0.0	2.8
Other consumer	—	%	0.0	0.0	—	%	0.8	0.0

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 the amortized cost basis of modified loans that, within 12 months of the modification date, experienced a subsequent default during the three and six months ended June 30, 2025 and 2024.

	Loans Modified Subsequently Defaulted During the Three Months Ended June 30, 2025
($ in thousands)	Term Extension		Payment Delay		Combination: Term Extension/ Payment Delay		Total
Commercial:
C&I	$	—	$	2,974	$	—	$	2,974
CRE	30,890		—		—		30,890
Total commercial	30,890		2,974		—		33,864
Consumer:
Single-family residential	—		830		—		830
HELOCs	—		3,509		286		3,795
Total consumer	—		4,339		286		4,625
Total	$	30,890	$	7,313	$	286	$	38,489

	Loans Modified Subsequently Defaulted During the Three Months Ended June 30, 2024
($ in thousands)	Term Extension		Payment Delay		Combination: Rate Reduction/ Payment Delay		Combination: Term Extension/ Payment Delay		Total
Commercial:
C&I	$	—	$	5,658	$	—	$	—	$	5,658
Total commercial	—		5,658		—		—		5,658
Consumer:
Single-family residential	—		3,613		—		2,438		6,051
HELOCs	—		941		1,149		—		2,090
Total consumer	—		4,554		1,149		2,438		8,141
Total	$	—	$	10,212	$	1,149	$	2,438	$	13,799

	Loans Modified Subsequently Defaulted During the Six Months Ended June 30, 2025
($ in thousands)	Term Extension		Payment Delay		Combination: Rate Reduction/ Payment Delay		Combination: Term Extension/ Payment Delay		Total
Commercial:
C&I	$	—	$	4,487	$	—	$	—	$	4,487
CRE	53,462		—		—		—		53,462
Total commercial	53,462		4,487		—		—		57,949
Consumer:
Single-family residential	—		3,060		—		207		3,267
HELOCs	—		5,541		—		286		5,827
Total consumer	—		8,601		—		493		9,094
Total	$	53,462	$	13,088	$	—	$	493	$	67,043

	Loans Modified Subsequently Defaulted During the Six Months Ended June 30, 2024
($ in thousands)	Term Extension		Payment Delay		Combination: Rate Reduction/ Payment Delay		Combination: Term Extension/ Payment Delay		Total
Commercial:
C&I	$	7,829	$	5,658	$	—	$	—	$	13,487
Total commercial	7,829		5,658		—		—		13,487
Consumer:
Single-family residential	—		7,575		—		2,823		10,398
HELOCs	—		941		1,149		—		2,090
Total consumer	—		8,516		1,149		2,823		12,488
Total	$	7,829	$	14,174	$	1,149	$	2,823	$	25,975

The Company monitors the performance of modified loans to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following tables present the performance of loans that were modified over the last 12 months as of June 30, 2025 and 2024:

	Payment Performance as of June 30, 2025
($ in thousands)	Current		30 - 89 Days Past Due		90+ Days Past Due		Total
Commercial:
C&I	$	165,093	$	—	$	—	$	165,093
CRE	193,099		—		—		193,099
Total commercial	358,192		—		—		358,192
Consumer:
Single-family residential	11,646		3,196		2,337		17,179
HELOCs	6,437		3,008		3,053		12,498
Total consumer	18,083		6,204		5,390		29,677
Total	$	376,275	$	6,204	$	5,390	$	387,869

	Payment Performance as of June 30, 2024
($ in thousands)	Current		30 - 89 Days Past Due		90+ Days Past Due		Total
Commercial:
C&I	$	67,004	$	—	$	7,829	$	74,833
CRE	54,892		—		—		54,892
Total commercial	121,896		—		7,829		129,725
Consumer:
Single-family residential	8,261		1,325		8,240		17,826
HELOCs	6,396		3,296		1,210		10,902
Other consumer	3,000		—		—		3,000
Total consumer	17,657		4,621		9,450		31,728
Total	$	139,553	$	4,621	$	17,279	$	161,453

As of June 30, 2025 and December 31, 2024, commitments to lend additional funds to borrowers whose loans were modified totaled $20 million and $10 million, respectively.

Allowance for Credit Losses

The Company has a current expected credit losses 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 and reversion to the historical loss experience method for the three and six months ended June 30, 2025 and 2024.

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 June 30, 2025, collateral-dependent commercial and consumer loans totaled $17 million and $15 million, respectively. In comparison, collateral-dependent commercial and consumer loans totaled $45 million and $23 million, respectively, as of December 31, 2024. The Company's collateral-dependent loans were secured by real estate. As of both June 30, 2025 and December 31, 2024, 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 three and six months ended June 30, 2025 and 2024:

		Three Months Ended June 30, 2025
		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		$	421,288	$	212,899	$	32,324	$	15,199	$	46,929	$	4,879	$	1,338	$	734,856
Provision for (reversal of) credit losses on loans	(a)	27,595		8,007		(3,274)		2,654		5,064		369		(259)		40,156
Gross charge-offs		(8,151)		(8,306)		(3)		—		—		—		(4)		(16,464)
Gross recoveries		1,504		18		26		3		4		8		250		1,813
Total net (charge-offs) recoveries		(6,647)		(8,288)		23		3		4		8		246		(14,651)
Foreign currency translation adjustment		55		—		—		—		—		—		—		55
Allowance for loan losses, end of period		$	442,291	$	212,618	$	29,073	$	17,856	$	51,997	$	5,256	$	1,325	$	760,416

		Three Months Ended June 30, 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		$	373,631	$	187,460	$	37,418	$	10,819	$	55,922	$	3,563	$	1,467	$	670,280
Provision for (reversal of) credit losses on loans	(a)	17,783		18,287		2,628		4,422		(6,366)		(232)		240		36,762
Gross charge-offs		(13,134)		(11,103)		—		(920)		(35)		—		(130)		(25,322)
Gross recoveries		1,817		150		208		1		2		9		—		2,187
Total net (charge-offs) recoveries		(11,317)		(10,953)		208		(919)		(33)		9		(130)		(23,135)
Foreign currency translation adjustment		(113)		—		—		—		—		—		—		(113)
Allowance for loan losses, end of period		$	379,984	$	194,794	$	40,254	$	14,322	$	49,523	$	3,340	$	1,577	$	683,794

		Six Months Ended June 30, 2025
		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		$	384,319	$	218,677	$	32,117	$	17,497	$	44,816	$	3,132	$	1,494	$	702,052
Provision for (reversal of) credit losses on loans	(a)	63,965		16,112		(3,073)		2,349		7,136		2,108		(379)		88,218
Gross charge-offs		(9,139)		(22,243)		(7)		(1,996)		(9)		—		(53)		(33,447)
Gross recoveries		3,068		72		36		6		54		16		263		3,515
Total net (charge-offs) recoveries		(6,071)		(22,171)		29		(1,990)		45		16		210		(29,932)
Foreign currency translation adjustment		78		—		—		—		—		—		—		78
Allowance for loan losses, end of period		$	442,291	$	212,618	$	29,073	$	17,856	$	51,997	$	5,256	$	1,325	$	760,416

		Six Months Ended June 30, 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)	18,057		37,419		5,660		5,803		(5,467)		(664)		108		60,916
Gross charge-offs		(34,132)		(13,501)		(6)		(2,144)		(35)		—		(188)		(50,006)
Gross recoveries		3,527		284		225		194		7		57		—		4,294
Total net (charge-offs) recoveries		(30,605)		(13,217)		219		(1,950)		(28)		57		(188)		(45,712)
Foreign currency translation adjustment		(153)		—		—		—		—		—		—		(153)
Allowance for loan losses, end of period		$	379,984	$	194,794	$	40,254	$	14,322	$	49,523	$	3,340	$	1,577	$	683,794

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 10 — Commitments and Contingencies to the Consolidated Financial Statements in this Form 10-Q for additional information related to unfunded credit commitments. The following table summarizes the activity in the allowance for unfunded credit commitments for the three and six months ended June 30, 2025 and 2024:

		Three Months Ended June 30,				Six Months Ended June 30,
($ in thousands)		2025		2024		2025		2024
Unfunded credit facilities
Allowance for unfunded credit commitments, beginning of period		$	40,464	$	38,544	$	39,526	$	37,698
Provision for credit losses on unfunded credit commitments	(b)	4,844		238		5,782		1,084
Foreign currency translation adjustment		(1)		1		(1)		1
Allowance for unfunded credit commitments, end of period		$	45,307	$	38,783	$	45,307	$	38,783
Provision for credit losses	(a) + (b)	$	45,000	$	37,000	$	94,000	$	62,000

The allowance for credit losses was $806 million as of June 30, 2025, an increase of $64 million, compared with $742 million as of December 31, 2024. The increase in the allowance for credit losses was primarily driven by the Company’s net loan and commitment growth, qualitative risk assessment, and an economic outlook that reflected continued caution regarding inflation, the high-interest rate environment and potential impacts from the escalating tariff and global trade tensions.

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 June 30, 2025, the Company assigned a slightly lower weighting to its baseline scenario, while applying a slightly higher weighting to the downside scenario, as compared with December 31, 2024. The current baseline economic forecast continues to reflect key risks such as still-elevated interest rates, inflation exacerbated by higher tariffs, and global conflicts. Compared with December 2024, the June 2025 baseline forecast for GDP growth is projected to be weaker through the second half of 2025 and most of 2026. Similarly, the near- and mid-term unemployment rates have increased in the June 2025 forecast reflecting the uncertainty which businesses and households are facing. The downside scenario assumed the economy falls into recession in the third quarter of 2025 as a result of tariffs, deportations, rising inflation, elevated 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 markets, unemployment declining below baseline starting in the third quarter of 2025, and diminished global political and economic tension.

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 three and six months ended June 30, 2025 and 2024:

	Three Months Ended June 30, 2025
	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)	$	102,214		$	—	$	—	$	—	$	102,214
Sales (2)(3)	$	90,341		$	—	$	—	$	396	$	90,737
Purchases	$	142,687	(4)	$	—	$	—	$	145,330	$	288,017

	Three Months Ended June 30, 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)	$	138,923		$	—	$	718	$	—	$	139,641
Sales (2)(3)	$	133,906		$	—	$	718	$	—	$	134,624
Purchases	$	170,175	(4)	$	—	$	—	$	111,864	$	282,039

	Six Months Ended June 30, 2025
	Commercial							Consumer		Total
				CRE				Residential Mortgage
($ in thousands)	C&I			CRE		Construction and Land		Single-Family Residential
Loans transferred from held-for-investment to held-for-sale (1)	$	108,570		$	20,338	$	9,500	$	—	$	138,408
Sales (2)(3)	$	96,697		$	20,338	$	11,316	$	396	$	128,747
Purchases	$	279,630	(4)	$	—	$	—	$	250,411	$	530,041

Refer to table footnotes on the following page.

	Six Months Ended June 30, 2024
	Commercial							Consumer		Total
				CRE				Residential Mortgage
($ in thousands)	C&I			CRE		Construction and Land		Single-Family Residential
Loans transferred from held-for-investment to held-for-sale (1)	$	338,897		$	—	$	718	$	—	$	339,615
Sales (2)(3)	$	321,108		$	—	$	718	$	965	$	322,791
Purchases	$	203,519	(4)	$	—	$	—	$	186,600	$	390,119

(1)Includes write-downs of $2 million to the allowance for loan losses related to loans transferred from held-for-investment to held-for-sale for the six months ended June 30, 2025, and $1 million for each of the three and six months ended June 30, 2024. There were no write-downs to the allowance for loan losses related to loans transferred from held-for-investment to held-for-sale for the three months ended June 30, 2025.

(2)Includes originated loans sold of $91 million and $125 million for the three and six months ended June 30, 2025, respectively, and $95 million and $187 million for the three and six months ended June 30, 2024, respectively. Originated loans sold were primarily comprised of C&I loans for each of the three and six months ended June 30, 2025 and 2024.

(3)Includes $4 million of purchased loans sold in the secondary market for the six months ended June 30, 2025, and $40 million and $136 million for each of the three and six months ended June 30, 2024, respectively. There were no purchased loans sold in the secondary market for the three months ended June 30, 2025.

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