Loans and Allowance for Credit Losses on Loans (Tables)

12 Months Ended

Dec. 31, 2022

Loans and Allowance for Credit Losses on Loans

Summary of loans

	December 31,		December 31,
	2022		2021
	(In thousands)
Mortgage warehouse lines of credit	$	464,785	$	781,437
Residential real estate		1,178,401		843,101
Multi-family financing(1)		3,135,535		2,702,042
Healthcare financing(1)		1,604,341		826,157
Commercial and commercial real estate(2)		978,661		520,199
Agricultural production and real estate		95,651		97,060
Consumer and margin loans		13,498		12,667
		7,470,872		5,782,663
Less:
ACL - Loans		44,014		31,344
Loans Receivable	$	7,426,858	$	5,751,319

(1) In 2022, the Company started presenting multi-family and healthcare loan types on separate lines for reporting purposes. Healthcare loans of $826.2 million were included in the combined multi-family and healthcare financing loan total as of December 31, 2021.

(2) Includes $497.0 million and $209.8 million of revolving lines of credit collateralized primarily by single-family mortgage servicing rights as of December 31, 2022 and 2021, respectively.

Summary of the activity in the ACL-Loans by portfolio segment

	At or For the Year Ended December 31, 2022
	MTG WHLOC		RES RE		MF FIN		HC FIN		CML & CRE		AG & AGRE		CON & MAR		TOTAL
	(In thousands)
ACL - Loans
Balance, beginning of period	$	1,955	$	4,170	$	14,084	$	4,461	$	5,879	$	657	$	138	$	31,344
Impact of adopting CECL		41		275		520		139		(1,277)		(18)		21		(299)
Provision for credit losses		(747)		2,588		2,177		5,282		4,216		(74)		31		13,473
Loans charged to the allowance		—		(4)		—		—		(1,238)		—		(15)		(1,257)
Recoveries of loans previously charged off		—		—		—		—		746		—		7		753
Balance, end of period	$	1,249	$	7,029	$	16,781	$	9,882	$	8,326	$	565	$	182	$	44,014

Summary of activity in the allowance for loans and recorded investment by loan portfolio

	At or For the Year Ended December 31, 2021
	MTG WHLOC		RES RE		MF FIN		HC FIN		CML & CRE		AG & AGRE		CON & MAR		TOTAL
	(In thousands)
Allowance for loan losses
Balance, beginning of period	$	4,018	$	3,334	$	12,140	$	2,591	$	4,641	$	636	$	140	$	27,500
Provision (credit) for loan losses		(2,063)		838		1,944		1,870		2,422		21		(20)		5,012
Loans charged to the allowance		—		(2)		—		—		(1,184)		—		(6)		(1,192)
Recoveries of loans previously charged off		—		—		—		—		—		—		24		24
Balance, December 31, 2021	$	1,955	$	4,170	$	14,084	$	4,461	$	5,879	$	657	$	138	$	31,344
Ending balance: individually evaluated for impairment	$	—	$	16	$	—	$	—	$	867	$	—	$	7	$	890
Ending balance: collectively evaluated for impairment	$	1,955	$	4,154	$	14,084	$	4,461	$	5,012	$	657	$	131	$	30,454
Loans
Balance, December 31, 2021	$	781,437	$	843,101	$	2,702,042	$	826,157	$	520,199	$	97,060	$	12,667	$	5,782,663
Ending balance individually evaluated for impairment	$	—	$	419	$	36,760	$	—	$	6,055	$	158	$	13	$	43,405
Ending balance collectively evaluated for impairment	$	781,437	$	842,682	$	2,665,282	$	826,157	$	514,144	$	96,902	$	12,654	$	5,739,258

	For the Year Ended December 31, 2020
	MTG WHLOC		RES RE		MF FIN		HC FIN		CML & CRE		AG & AGRE		CON & MAR		TOTAL
	(In thousands)
Allowance for loan losses
Balance, beginning of year	$	1,913	$	2,042	$	5,784	$	1,234	$	4,173	$	523	$	173	$	15,842
Provision for credit losses		2,105		1,248		6,356		1,357		681		113		(22)		11,838
Loans charged to the allowance		—		(31)		—		—		(319)		—		(11)		(361)
Recoveries of loans previously charged off		—		75		—		—		106		—		—		181
Balance, end of year	$	4,018	$	3,334	$	12,140	$	2,591	$	4,641	$	636	$	140	$	27,500

Schedule of allowance for credit loss allocated to collateral dependent loans

	December 31, 2022
	Real Estate		Accounts Receivable / Equipment		Other		Total		ACL-Loans Allocation
	(In thousands)
RES RE	$	237	$	—	$	9	$	246	$	31
MF FIN		36,760		—		—		36,760		173
HC FIN		21,783		—		—		21,783		134
CML & CRE		—		4,917		966		5,883		842
AG & AGRE		147		—		—		147		1
CON & MAR		—		—		6		6		—
Total collateral dependent loans	$	58,927	$	4,917	$	981	$	64,825	$	1,181

Schedule of credit risk profile of loan portfolio

	December 31, 2022
	2022		2021		2020		2019		2018		Prior		Revolving Loans		TOTAL
	(In thousands)
MTG WHLOC
Pass	$	—	$	—	$	—	$	—	$	—	$	—	$	464,785	$	464,785
Total	$	—	$	—	$	—	$	—	$	—	$	—	$	464,785	$	464,785
RES RE
Pass		13,344		8,192		24,708		3,498		1,722		11,166		1,114,705		1,177,335
Special Mention (Watch)		—		—		—		61		—		668		91		820
Substandard		—		—		—		—		74		172		—		246
Total	$	13,344	$	8,192	$	24,708	$	3,559	$	1,796	$	12,006	$	1,114,796	$	1,178,401
MF FIN
Pass		1,212,008		544,823		200,829		32,349		4,416		7,229		1,042,024		3,043,678
Special Mention (Watch)		32,919		—		8,000		—		—		—		14,178		55,097
Substandard		36,760		—		—		—		—		—		—		36,760
Total	$	1,281,687	$	544,823	$	208,829	$	32,349	$	4,416	$	7,229	$	1,056,202	$	3,135,535
HC FIN
Pass		987,676		301,103		78,792		13,770		—		—		123,888		1,505,229
Special Mention (Watch)		52,022		25,307		—		—		—		—		—		77,329
Substandard		—		21,783		—		—		—		—		—		21,783
Total	$	1,039,698	$	348,193	$	78,792	$	13,770	$	—	$	—	$	123,888	$	1,604,341
CML & CRE
Pass		123,757		86,282		23,803		24,730		12,335		8,765		690,114		969,786
Special Mention (Watch)		43		164		963		119		99		228		1,376		2,992
Substandard		—		2,017		591		72		—		666		2,537		5,883
Total	$	123,800	$	88,463	$	25,357	$	24,921	$	12,434	$	9,659	$	694,027	$	978,661
AG & AGRE
Pass		12,112		7,485		15,660		5,808		3,137		20,176		29,566		93,944
Special Mention (Watch)		14		55		462		421		163		389		56		1,560
Substandard		—		—		—		—		—		147		—		147
Total	$	12,126	$	7,540	$	16,122	$	6,229	$	3,300	$	20,712	$	29,622	$	95,651
CON & MAR
Pass		4,673		463		307		101		4,589		9		3,328		13,470
Special Mention (Watch)		—		—		20		—		—		2		—		22
Substandard		—		—		—		—		—		6		—		6
Total	$	4,673	$	463	$	327	$	101	$	4,589	$	17	$	3,328	$	13,498
Total Pass	$	2,353,570	$	948,348	$	344,099	$	80,256	$	26,199	$	47,345	$	3,468,410	$	7,268,227
Total Special Mention (Watch)	$	84,998	$	25,526	$	9,445	$	601	$	262	$	1,287	$	15,701	$	137,820
Total Substandard	$	36,760	$	23,800	$	591	$	72	$	74	$	991	$	2,537	$	64,825
Total Loans	$	2,475,328	$	997,674	$	354,135	$	80,929	$	26,535	$	49,623	$	3,486,648	$	7,470,872

	December 31, 2021
	MTG WHLOC		RES RE		MF FIN		HC FIN		CML & CRE		AG & AGRE		CON & MAR		TOTAL
	(In thousands)
Special Mention (Watch)	$	—	$	946	$	27,155	$	66,406	$	2,483	$	3,820	$	21	$	100,831
Substandard		—		419		36,760		—		6,055		158		13		43,405
Pass		781,437		841,736		2,638,127		759,751		511,661		93,082		12,633		5,638,427
Total	$	781,437	$	843,101	$	2,702,042	$	826,157	$	520,199	$	97,060	$	12,667	$	5,782,663

Schedule of aging analysis of the recorded investment in loans

	December 31, 2022
	30-59 Days		60-89 Days		Greater Than		Total				Total
	Past Due		Past Due		90 Days		Past Due		Current		Loans
	(In thousands)
MTG WHLOC	$	—	$	—	$	—	$	—	$	464,785	$	464,785
RES RE		4,053		152		272		4,477		1,173,924		1,178,401
MF FIN		—		—		—		—		3,135,535		3,135,535
HC FIN		—		—		21,783		21,783		1,582,558		1,604,341
CML & CRE		4,759		—		3,778		8,537		970,124		978,661
AG & AGRE		4,903		—		—		4,903		90,748		95,651
CON & MAR		6		24		22		52		13,446		13,498
	$	13,721	$	176	$	25,855	$	39,752	$	7,431,120	$	7,470,872

	December 31, 2021
	30-59 Days		60-89 Days		Greater Than		Total				Total
	Past Due		Past Due		90 Days		Past Due		Current		Loans
	(In thousands)
MTG WHLOC	$	—	$	—	$	—	$	—	$	781,437	$	781,437
RES RE		1,252		287		186		1,725		841,376		843,101
MF FIN		—		—		—		—		2,702,042		2,702,042
HC FIN		—		—		—		—		826,157		826,157
CML & CRE		591		8		149		748		519,451		520,199
AG & AGRE		37		21		—		58		97,002		97,060
CON & MAR		43		5		40		88		12,579		12,667
	$	1,923	$	321	$	375	$	2,619	$	5,780,044	$	5,782,663

Schedule of components of impaired loans and specific valuation allowance

	December 31, 2021
	MTG WHLOC		RES RE		MF FIN		CML & CRE		AG & AGRE		CON & MAR		TOTAL
	(In thousands)
Impaired loans without a specific allowance:
Recorded investment	$	—	$	372	$	36,760	$	3,912	$	158	$	4	$	41,206
Unpaid principal balance		—		372		36,760		3,912		158		4		41,206
Impaired loans with a specific allowance:
Recorded investment		—		47		—		2,143		—		9		2,199
Unpaid principal balance		—		47		—		2,143		—		9		2,199
Specific allowance		—		16		—		867		—		7		890
Total impaired loans:
Recorded investment		—		419		36,760		6,055		158		13		43,405
Unpaid principal balance		—		419		36,760		6,055		158		13		43,405
Specific allowance		—		16		—		867		—		7		890

Schedule of average recorded investment and interest income recognized in impaired loans

	December 31, 2021
	MTG						CML &		AG &		CON &
	WHLOC		RES RE		MF FIN		CRE		AGRE		MAR		TOTAL
	(In thousands)
Average recorded investment in impaired loans	$	—	$	1,658	$	14,138	$	6,888	$	611	$	7	$	23,302
Interest income recognized		—		64		—		397		—		—		461

	December 31, 2020
	MTG						CML &			AG &	CON &
	WHLOC		RES RE		MF FIN		CRE			AGRE	MAR		TOTAL
	(In thousands)
Average recorded investment in impaired loans	$	106	$	3,002	$	—	$	9,913	$	1,662	$	17	$	14,700
Interest income recognized		—		57		—		371		1		—		429

Schedule of nonaccrual loans and loans past due 90 days or more and still accruing

	December 31,				December 31,
	2022				2021
			Total Loans >				Total Loans >
			90 Days &				90 Days &
	Nonaccrual		Accruing		Nonaccrual		Accruing
	(In thousands)
RES RE	$	245	$	96	$	362	$	22
MF FIN		—		—		—		—
HC FIN		21,783		—		—		—
CML & CRE		4,390		—		—		149
AG & AGRE		147		—		158		30
CON & MAR		6		16		4		36
	$	26,571	$	112	$	524	$	237