Loans Receivable and Allowance for Credit Losses (Tables)

12 Months Ended

Dec. 31, 2022

Receivables [Abstract]

Summary of Loans Receivable by Major Category

The following is a summary of loans receivable by major category:

	December 31,
	2022		2021
	(Dollars in thousands)
Loan portfolio composition
Real estate loans:
Residential	$	76,045	$	69,199
Commercial	9,170,784		8,816,080
Construction	167,751		220,652
Total real estate loans	9,414,580		9,105,931
Commercial business *	5,109,532		4,208,674
Residential mortgage	846,080		579,626
Consumer and other	33,348		58,512
Loans receivable	15,403,540		13,952,743
Allowance for credit losses	(162,359)		(140,550)
Loans receivable, net of allowance for credit losses	$	15,241,181	$	13,812,193

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* Commercial business loans as of December 31, 2022 and 2021 include $1.9 million and $228.1 million, respectively, in SBA Paycheck Protection Program loans

Allowance for Credit Losses by Portfolio Segment

The tables below detail the activity in the allowance for credit losses (“ACL”) by portfolio segment for the years ended December 31, 2022 and 2021, and 2020. Recoveries for the year ended December 31, 2022 included $17.3 million in recoveries from a single lending relationship that had $29.6 million in charge offs during the year 2021. Charge offs for the year 2021 included $26.2 million in charge offs related to the sale of $275.3 million in loans with elevated credit risk.

	Real Estate		Commercial Business		Residential Mortgage		Consumer and Other		Total
	(Dollars in thousands)
December 31, 2022
Balance, beginning of period	$	108,440	$	27,811	$	3,316	$	983	$	140,550
Provision (credit) for credit losses	(27,451)		31,360		5,626		65		9,600
Loans charged off	(6,803)		(5,160)		(22)		(404)		(12,389)
Recoveries of charge offs	21,698		2,861		—		39		24,598
Balance, end of period	$	95,884	$	56,872	$	8,920	$	683	$	162,359
December 31, 2021
Balance, beginning of period	$	162,196	$	39,155	$	4,227	$	1,163	$	206,741
Provision (credit) for credit losses	(2,051)		(9,982)		12		(179)		(12,200)
Loans charged off	(57,427)		(3,558)		(923)		(328)		(62,236)
Recoveries of charge offs	5,722		2,196		—		327		8,245
Balance, end of period	$	108,440	$	27,811	$	3,316	$	983	$	140,550
December 31, 2020
Balance, beginning of period	$	53,593	$	33,032	$	5,925	$	1,594	$	94,144
CECL day 1 adoption	27,791		(1,022)		(543)		(26)		$	26,200
Provision (credit) for credit losses	87,619		7,776		(1,155)		760		95,000
Loans charged off	(8,658)		(6,157)		—		(1,211)		(16,026)
Recoveries of charge offs	1,851		5,526		—		46		7,423
Balance, end of period	$	162,196	$	39,155	$	4,227	$	1,163	$	206,741

The following tables break out the allowance for credit losses and loan balance by measurement methodology at December 31, 2022 and 2021:

	December 31, 2022
	Real Estate		Commercial Business		Residential Mortgage		Consumer and Other		Total
	(Dollars in thousands)
Allowance for credit losses:
Individually evaluated	$	870	$	2,941	$	24	$	21	$	3,856
Collectively evaluated	95,014		53,931		8,896		662		158,503
Total	$	95,884	$	56,872	$	8,920	$	683	$	162,359
Loans outstanding:
Individually evaluated	$	43,461	$	12,477	$	9,775	$	436	$	66,149
Collectively evaluated	9,371,119		5,097,055		836,305		32,912		15,337,391
Total	$	9,414,580	$	5,109,532	$	846,080	$	33,348	$	15,403,540

	December 31, 2021
	Real Estate		Commercial Business		Residential Mortgage		Consumer and Other		Total
	(Dollars in thousands)
Allowance for credit losses:
Individually evaluated	$	2,025	$	3,056	$	11	$	23	$	5,115
Collectively evaluated	106,415		24,755		3,305		960		135,435
Total	$	108,440	$	27,811	$	3,316	$	983	$	140,550
Loans outstanding:
Individually evaluated	$	83,347	$	19,407	$	3,470	$	409	$	106,633
Collectively evaluated	9,022,584		4,189,267		576,156		58,103		13,846,110
Total	$	9,105,931	$	4,208,674	$	579,626	$	58,512	$	13,952,743

The following tables present a breakdown of loans by recorded ACL, broken out by loans evaluated individually and collectively at December 31, 2022 and 2021:

	December 31, 2022
	Real Estate – Residential			Real Estate – Commercial			Real Estate – Construction			Commercial Business			Residential Mortgage			Consumer and Other			Total
	(Dollars in thousands)
Individually evaluated loans	$	—		$	43,461		$	—		$	12,477		$	9,775		$	436		$	66,149
ACL on individually evaluated loans	$	—		$	870		$	—		$	2,941		$	24		$	21		$	3,856
Individually evaluated loans ACL coverage	N/A			2.00		%	N/A			23.57		%	0.25		%	4.82		%	5.83		%
Collectively evaluated loans	$	76,045		$	9,127,323		$	167,751		$	5,097,055		$	836,305		$	32,912		$	15,337,391
ACL on collectively evaluated loans	$	1,014		$	92,947		$	1,053		$	53,931		$	8,896		$	662		$	158,503
Collectively evaluated loans ACL coverage	1.33		%	1.02		%	0.63		%	1.06		%	1.06		%	2.01		%	1.03		%
Total loans	$	76,045		$	9,170,784		$	167,751		$	5,109,532		$	846,080		$	33,348		$	15,403,540
Total ACL	$	1,014		$	93,817		$	1,053		$	56,872		$	8,920		$	683		$	162,359
Total ACL to total loans	1.33		%	1.02		%	0.63		%	1.11		%	1.05		%	2.05		%	1.05		%

	December 31, 2021
	Real Estate – Residential			Real Estate – Commercial			Real Estate – Construction			Commercial Business			Residential Mortgage			Consumer and Other			Total
	(Dollars in thousands)
Individually evaluated loans	$	—		$	83,347		$	—		$	19,407		$	3,470		$	409		$	106,633
ACL on individually evaluated loans	$	—		$	2,025		$	—		$	3,056		$	11		$	23		$	5,115
Individually evaluated loans ACL coverage	N/A			2.43		%	N/A			15.75		%	0.32		%	5.62		%	4.80		%
Collectively evaluated loans	$	69,199		$	8,732,733		$	220,652		$	4,189,267		$	576,156		$	58,103		$	13,846,110
ACL on collectively evaluated loans	$	729		$	104,145		$	1,541		$	24,755		$	3,305		$	960		$	135,435
Collectively evaluated loans ACL coverage	1.05		%	1.19		%	0.70		%	0.59		%	0.57		%	1.65		%	0.98		%
Total loans	$	69,199		$	8,816,080		$	220,652		$	4,208,674		$	579,626		$	58,512		$	13,952,743
Total ACL	$	729		$	106,170		$	1,541		$	27,811		$	3,316		$	983		$	140,550
Total ACL to total loans	1.05		%	1.20		%	0.70		%	0.66		%	0.57		%	1.68		%	1.01		%

Schedule of Nonaccrual Loans and Loans Past Due 90 or More Days And Still on Accrual Status

The tables below represent the amortized cost of nonaccrual loans and loans past due 90 or more days and still on accrual status by class of loans and broken out by loans with a recorded ACL and those without a recorded ACL as of December 31, 2022 and 2021.

	December 31, 2022
	Nonaccrual with No ACL		Nonaccrual with an ACL		Total Nonaccrual (1)		Accruing Loans Past Due 90 or More Days
	(Dollars in thousands)
Real estate – residential	$	—	$	—	$	—	$	—
Real estate – commercial
Retail	17,635		1,007		18,642		—
Hotel & motel	8,939		347		9,286		—
Gas station & car wash	2,134		124		2,258		—
Mixed use	781		186		967		—
Industrial & warehouse	109		727		836		—
Other	184		1,742		1,926		—
Real estate – construction	—		—		—		—
Commercial business	1,618		4,002		5,620		336
Residential mortgage	5,959		3,816		9,775		—
Consumer and other	—		377		377		65
Total	$	37,359	$	12,328	$	49,687	$	401

	December 31, 2021
	Nonaccrual with No ACL		Nonaccrual with an ACL		Total Nonaccrual (1)		Accruing Loans Past Due 90 or More Days
	(Dollars in thousands)
Real estate – residential	$	—	$	—	$	—	$	—
Real estate – commercial
Retail	7,586		2,604		10,190		—
Hotel & motel	5,471		6,564		12,035		—
Gas station & car wash	575		1,267		1,842		—
Mixed use	5,307		1,412		6,719		—
Industrial & warehouse	687		1,897		2,584		—
Other	1,233		5,153		6,386		215
Real estate – construction	—		—		—		—
Commercial business	4,726		6,299		11,025		1,494
Residential mortgage	275		3,195		3,470		—
Consumer and other	—		365		365		422
Total	$	25,860	$	28,756	$	54,616	$	2,131

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(1)    Total nonaccrual loans exclude the guaranteed portion of SBA loans that are in liquidation totaling $9.8 million and $19.5 million, at December 31, 2022 and 2021, respectively.

Amortized Cost Basis of Collateral-Dependent Loans

The following table presents the amortized cost of collateral dependent loans as of December 31, 2022 and 2021:

	December 31, 2022						December 31, 2021
	Real Estate Collateral		Other Collateral		Total		Real Estate Collateral		Other Collateral		Total
	(Dollars in thousands)
Real estate – residential	$	—	$	—	$	—	$	—	$	—	$	—
Real estate – commercial	35,523		—		35,523		65,590		—		65,590
Real estate – construction	—		—		—		—		—		—
Commercial business	1,618		2,743		4,361		1,767		6,615		8,382
Residential mortgage	5,959		—		5,959		—		—		—
Consumer and other	—		—		—		—		—		—
Total	$	43,100	$	2,743	$	45,843	$	67,357	$	6,615	$	73,972

Aging of Past Due Loans

The following table presents the amortized cost of past due loans, including nonaccrual loans past due 30 or more days, by the number of days past due as of December 31, 2022 and 2021 by class of loans:

	December 31, 2022								December 31, 2021
	30-59 Days Past Due		60-89 Days  Past Due		90 or More Days Past Due		Total Past Due		30-59 Days Past Due		60-89 Days  Past Due		90 or More Days Past Due		Total Past Due
	(Dollars in thousands)
Real estate – residential	$	1,266	$	—	$	—	$	1,266	$	—	$	—	$	—	$	—
Real estate – commercial
Retail	—		1,617		521		2,138		1,250		927		9,167		11,344
Hotel & motel	359		564		3,503		4,426		9,320		4,148		4,760		18,228
Gas station & car wash	582		124		—		706		575		—		832		1,407
Mixed use	—		—		781		781		1,124		—		5,625		6,749
Industrial & warehouse	85		89		268		442		247		—		785		1,032
Other	—		333		621		954		1,198		6,522		3,185		10,905
Real estate – construction	—		—		—		—		—		—		—		—
Commercial business	3,258		18		2,137		5,413		1,792		2,362		6,482		10,636
Residential mortgage	2,310		—		5,106		7,416		14,177		—		3,099		17,276
Consumer and other	617		44		308		969		59		21		787		867
Total Past Due	$	8,477	$	2,789	$	13,245	$	24,511	$	29,742	$	13,980	$	34,722	$	78,444

Financing Receivable Credit Quality Indicators

The following table presents the amortized cost basis of loans receivable by class, credit quality indicator, and year of origination as of December 31, 2022 and 2021.

	December 31, 2022
	Term Loan by Origination Year												Revolving Loans		Total
	2022		2021		2020		2019		2018		Prior
	(Dollars in thousands)
Real Estate - Residential
Pass / not rated	$	19,256	$	23,505	$	9,691	$	9,017	$	3,964	$	5,397	$	3,995	$	74,825
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		661		559		—		1,220
Doubtful / loss	—		—		—		—		—		—		—		—
Subtotal	$	19,256	$	23,505	$	9,691	$	9,017	$	4,625	$	5,956	$	3,995	$	76,045
Real Estate - Commercial
Pass / not rated	$	2,395,805	$	2,140,650	$	1,299,144	$	1,043,970	$	1,006,454	$	1,053,970	$	101,190	$	9,041,183
Special mention	—		14,622		7,301		6,001		13,565		15,912		202		57,603
Substandard	—		8,240		1,736		7,881		9,589		44,552		—		71,998
Doubtful / loss	—		—		—		—		—		—		—		—
Subtotal	$	2,395,805	$	2,163,512	$	1,308,181	$	1,057,852	$	1,029,608	$	1,114,434	$	101,392	$	9,170,784
Real Estate - Construction
Pass / not rated	$	6,570	$	29,918	$	63,192	$	23,418	$	8,135	$	4,900	$	89	$	136,222
Special mention	—		—		—		14,425		—		10,834		—		25,259
Substandard	—		—		—		—		—		6,270		—		6,270
Doubtful / loss	—		—		—		—		—		—		—		—
Subtotal	$	6,570	$	29,918	$	63,192	$	37,843	$	8,135	$	22,004	$	89	$	167,751
Commercial Business
Pass / not rated	$	2,311,344	$	1,090,034	$	291,592	$	298,133	$	69,721	$	95,531	$	864,343	$	5,020,698
Special mention	17,911		37,393		13,707		110		—		24		5,256		74,401
Substandard	—		2,833		5,889		1,000		1,020		3,691		—		14,433
Doubtful / loss	—		—		—		—		—		—		—		—
Subtotal	$	2,329,255	$	1,130,260	$	311,188	$	299,243	$	70,741	$	99,246	$	869,599	$	5,109,532
Residential Mortgage
Pass / not rated	$	382,935	$	283,163	$	1,386	$	30,603	$	62,976	$	75,242	$	—	$	836,305
Special mention	—		—		—		—		—		—		—		—
Substandard	—		311		—		967		384		8,113		—		9,775
Doubtful / loss	—		—		—		—		—		—		—		—
Subtotal	$	382,935	$	283,474	$	1,386	$	31,570	$	63,360	$	83,355	$	—	$	846,080
Consumer and Other
Pass / not rated	$	10,005	$	723	$	3,351	$	223	$	10	$	1,420	$	17,239	$	32,971
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		377		—		377
Doubtful / loss	—		—		—		—		—		—		—		—
Subtotal	$	10,005	$	723	$	3,351	$	223	$	10	$	1,797	$	17,239	$	33,348
Total Loans
Pass / not rated	$	5,125,915	$	3,567,993	$	1,668,356	$	1,405,364	$	1,151,260	$	1,236,460	$	986,856	$	15,142,204
Special mention	17,911		52,015		21,008		20,536		13,565		26,770		5,458		157,263
Substandard	—		11,384		7,625		9,848		11,654		63,562		—		104,073
Doubtful / loss	—		—		—		—		—		—		—		—
Total	$	5,143,826	$	3,631,392	$	1,696,989	$	1,435,748	$	1,176,479	$	1,326,792	$	992,314	$	15,403,540

	December 31, 2021
	Term Loan by Origination Year												Revolving Loans		Total
	2021		2020		2019		2018		2017		Prior
	(Dollars in thousands)
Real Estate - Residential
Pass / not rated	$	26,093	$	10,471	$	11,442	$	4,952	$	2,987	$	7,260	$	4,403	$	67,608
Special mention	—		—		—		534		—		924		—		1,458
Substandard	—		—		—		133		—		—		—		133
Doubtful / loss	—		—		—		—		—		—		—		—
Subtotal	$	26,093	$	10,471	$	11,442	$	5,619	$	2,987	$	8,184	$	4,403	$	69,199
Real Estate - Commercial
Pass / not rated	$	2,451,662	$	1,415,909	$	1,252,851	$	1,238,425	$	883,790	$	1,086,182	$	89,501	$	8,418,320
Special mention	5,553		8,882		39,567		20,203		27,204		73,090		5,970		180,469
Substandard	7,436		7,718		17,533		25,330		53,000		105,995		279		217,291
Doubtful / loss	—		—		—		—		—		—		—		—
Subtotal	$	2,464,651	$	1,432,509	$	1,309,951	$	1,283,958	$	963,994	$	1,265,267	$	95,750	$	8,816,080
Real Estate - Construction
Pass / not rated	$	16,545	$	67,628	$	32,044	$	32,908	$	8,292	$	5,685	$	89	$	163,191
Special mention	—		—		—		45,996		5,074		6,391		—		57,461
Substandard	—		—		—		—		—		—		—		—
Doubtful / loss	—		—		—		—		—		—		—		—
Subtotal	$	16,545	$	67,628	$	32,044	$	78,904	$	13,366	$	12,076	$	89	$	220,652
Commercial Business
Pass / not rated	$	1,755,104	$	431,145	$	461,460	$	98,812	$	53,629	$	70,294	$	1,299,372	$	4,169,816
Special mention	1,379		523		4,780		2,897		550		5,083		2,594		17,806
Substandard	3,796		941		2,308		1,651		3,803		3,461		5,092		21,052
Doubtful / loss	—		—		—		—		—		—		—		—
Subtotal	$	1,760,279	$	432,609	$	468,548	$	103,360	$	57,982	$	78,838	$	1,307,058	$	4,208,674
Residential Mortgage
Pass / not rated	$	282,191	$	1,420	$	40,377	$	112,743	$	85,446	$	53,979	$	—	$	576,156
Special mention	—		—		—		—		—		—		—		—
Substandard	275		—		128		394		541		2,132		—		3,470
Doubtful / loss	—		—		—		—		—		—		—		—
Subtotal	$	282,466	$	1,420	$	40,505	$	113,137	$	85,987	$	56,111	$	—	$	579,626
Consumer and Other
Pass / not rated	$	19,203	$	5,347	$	1,783	$	1,699	$	1,769	$	6,165	$	22,095	$	58,061
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		451		—		451
Doubtful / loss	—		—		—		—		—		—		—		—
Subtotal	$	19,203	$	5,347	$	1,783	$	1,699	$	1,769	$	6,616	$	22,095	$	58,512
Total Loans
Pass / not rated	$	4,550,798	$	1,931,920	$	1,799,957	$	1,489,539	$	1,035,913	$	1,229,565	$	1,415,460	$	13,453,152
Special mention	6,932		9,405		44,347		69,630		32,828		85,488		8,564		257,194
Substandard	11,507		8,659		19,969		27,508		57,344		112,039		5,371		242,397
Doubtful / loss	—		—		—		—		—		—		—		—
Total	$	4,569,237	$	1,949,984	$	1,864,273	$	1,586,677	$	1,126,085	$	1,427,092	$	1,429,395	$	13,952,743

For the years ended December 31, 2022 and 2021, there were no revolving loans converted to term loans.

Loans Sold From Loans Held For Investment

The breakdown of loans by type that were reclassified from held for investment to held for sale for the years ended December 31, 2022, 2021, and 2020 are presented in the following table:

	Year Ended December 31,
	2022		2021		2020
Transfer of loans held for investment to held for sale	(Dollars in thousands)
Real estate - commercial	$	257,317	$	365,426	$	—
Commercial business	54,218		100,154		—
Residential mortgage	—		7,018		—
Consumer	—		—		1,243
Total	$	311,535	$	472,598	$	1,243

Troubled Debt Restructurings

A summary of the amortized cost of TDR loans on accrual and nonaccrual status by type of concession as of December 31, 2022 and 2021 is presented below:

	December 31, 2022
	TDR Loans on Accrual Status								TDR Loans on Nonaccrual Status								Total TDRs
	Real Estate		Commercial Business		Residential Mortgage		Other		Real Estate		Commercial Business		Residential Mortgage		Other
	(Dollars in thousands)
Payment concession	$	5,404	$	501	$	—	$	—	$	20,193	$	171	$	—	$	—	$	26,269
Maturity / amortization concession	2,190		6,175		—		280		101		2,245		—		87		11,078
Rate concession	2,195		186		—		—		—		1,398		—		—		3,779
Total	$	9,789	$	6,862	$	—	$	280	$	20,294	$	3,814	$	—	$	87	$	41,126

	December 31, 2021
	TDR Loans on Accrual Status								TDR Loans on Nonaccrual Status								Total TDRs
	Real Estate		Commercial Business		Residential Mortgage		Other		Real Estate		Commercial Business		Residential Mortgage		Other
	(Dollars in thousands)
Payment concession	$	23,196	$	790	$	—	$	16	$	7,533	$	420	$	—	$	—	$	31,955
Maturity / amortization concession	15,449		7,284		—		183		269		3,109		—		117		26,411
Rate concession	5,161		339		—		—		234		1,413		—		—		7,147
Total	$	43,806	$	8,413	$	—	$	199	$	8,036	$	4,942	$	—	$	117	$	65,513

The following tables present the amortized cost of loans classified as TDR during the years ended December 31, 2022, 2021, and 2020 by class of loans.

	Year Ended December 31,
	2022			2021			2020
	Number of Loans	Balance		Number of Loans	Balance		Number of Loans	Balance
	(Dollars in thousands)
Real estate – residential	—	$	—	—	$	—	—	$	—
Real estate – commercial
Retail	—	—		5	24,169		3	1,589
Hotel & motel	1	1,932		—	—		—	—
Gas station & car wash	—	—		1	575		2	501
Mixed use	—	—		—	—		2	1,215
Industrial & warehouse	—	—		1	506		1	256
Other	—	—		—	—		2	2,722
Real estate – construction	—	—		—	—		—	—
Commercial business	—	—		3	309		6	1,620
Residential mortgage	—	—		—	—		—	—
Consumer and other	—	—		2	13		9	113
Total	1	$	1,932	12	$	25,572	25	$	8,016

Summary of Troubled Debt Restructurings with Subsequent Payment Default

The following tables present the amortized cost balance of loans modified as TDRs within the previous twelve months ended December 31, 2022, 2021, and 2020 that subsequently had payment defaults during the years ended December 31, 2022, 2021, and 2020:

	For the Year Ended December 31,
	2022			2021			2020
	Number of Loans	Balance		Number of Loans	Balance		Number of Loans	Balance
	(Dollars in thousands)
Real estate – residential	—	$	—	—	$	—	—	$	—
Real estate – commercial
Retail	—	—		3	5,906		1	478
Hotel & motel	—	—		—	—		—	—
Gas station & car wash	—	—		1	575		1	464
Mixed Use	—	—		—	—		2	1,215
Industrial & warehouse	—	—		—	—		—	—
Other	—	—		—	—		—	—
Real estate – construction	—	—		—	—		—	—
Commercial business	—	—		1	102		1	164
Residential mortgage	—	—		—	—		—	—
Consumer and other	—	—		2	13		5	30
Total	—	$	—	7	$	6,596	10	$	2,351

interest income reversal, nonaccrual, by loan segment

The following table presents interest income reversals, due to loans being placed on nonaccrual status, by loan segment for the years ended December 31, 2022 and 2021:

	Year Ended December 31,
	2022		2021		2020
	(Dollars in thousands)
Real estate	$	1,906	$	3,102	$	1,047
Commercial business	307		62		78
Residential mortgage	309		17		—
Consumer and other	1		3		3
Total	$	2,523	$	3,184	$	1,128