Loans (Tables)

3 Months Ended

Mar. 31, 2022

The following sets forth the composition of the Company’s loan portfolio:


(in thousands)	March 31, 2022		December 31, 2021
Non-owner occupied commercial	$	2,639,784	$	2,316,284
Owner occupied commercial	1,122,754		908,449
Multifamily	1,104,206		972,233
Non-owner occupied residential	225,795		177,097
Commercial, industrial and other	657,396		462,406
Construction	404,186		302,228
Equipment finance	123,943		123,212
Residential mortgage	564,042		438,710
Home equity and consumer	295,687		275,529
Total	$	7,137,793	$	5,976,148

Credit Quality Indicators

The following table presents the risk category of loans by class of loan and vintage as of March 31, 2022.


	Term Loans by Origination Year
(in thousands)	2022		2021		2020		2019		2018		Pre-2018		Revolving Loans		Revolving to Term	Total
Non-owner occupied commercial
Pass	$	134,552	$	395,622	$	557,085	$	307,522	$	206,280	$	790,696	$	20,267	—	$	2,412,024
Watch	—		—		8,465		19,248		20,887		54,013		230		—	102,843
Special mention	—		—		456		—		5,712		50,199		1,037		—	57,404
Substandard	—		—		431		15,543		2,656		48,883		—		—	67,513
Total	134,552		395,622		566,437		342,313		235,535		943,791		21,534		—	2,639,784
Owner occupied commercial
Pass	23,803		228,057		161,113		105,987		84,816		360,280		13,101		—	977,157
Watch	—		—		9,507		7,202		2,870		30,493		—		—	50,072
Special mention	—		—		9,697		24,095		3,147		19,425		—		—	56,364
Substandard	—		—		2,341		—		7,029		29,791		—		—	39,161
Total	23,803		228,057		182,658		137,284		97,862		439,989		13,101		—	1,122,754
Multifamily
Pass	68,898		227,863		279,619		79,981		110,943		300,178		1,682		933	1,070,097
Watch	—		9		—		—		1,314		5,585		—		—	6,908
Special mention	—		—		2,458		—		—		14,346		—		—	16,804
Substandard	—		—		—		5,486		—		4,810		101		—	10,397
Total	68,898		227,872		282,077		85,467		112,257		324,919		1,783		933	1,104,206
Non-owner occupied residential
Pass	6,241		31,936		23,161		27,100		17,928		81,630		9,471		298	197,765
Watch	—		—		2,548		2,058		3,746		7,826		125		—	16,303
Special mention	—		—		—		633		833		6,439		—		—	7,905
Substandard	—		—		501		510		611		2,150		50		—	3,822
Total	6,241		31,936		26,210		30,301		23,118		98,045		9,646		298	225,795



Commercial, industrial and other
Pass	2,241		89,641		26,661		69,721		15,211		44,946		365,030		521	613,972
Watch	—		881		7,584		397		—		1,471		11,663		57	22,053
Special mention	—		41		—		2,873		51		2,702		910		250	6,827
Substandard	—		96		130		849		5,950		1,775		5,744		—	14,544
Total	2,241		90,659		34,375		73,840		21,212		50,894		383,347		828	657,396




Construction
Pass	8,790		164,791		112,923		39,336		10,107		27,329		5,673		—	368,949
Watch	9		—		—		912		13,682		1,846		287		—	16,736
Special mention	251		—		—		3,095		—		—		—		—	3,346
Substandard	—		—		—		219		—		14,936		—		—	15,155
Total	9,050		164,791		112,923		43,562		23,789		44,111		5,960		—	404,186








Equipment finance
Pass	13,607		46,564		27,809		24,631		8,517		2,756		—		—	123,884


Substandard	—		—		—		31		21		7		—		—	59
Total	13,607		46,564		27,809		24,662		8,538		2,763		—		—	123,943





Residential mortgage
Pass	81,735		177,323		115,332		37,799		23,626		126,161		—		—	561,976


Substandard	—		—		—		571		123		1,372		—		—	2,066
Total	81,735		177,323		115,332		38,370		23,749		127,533		—		—	564,042


	Term Loans by Origination Year
(in thousands)	2022		2021		2020		2019		2018		Pre-2018		Revolving Loans		Revolving to Term		Total
Consumer
Pass	15,451		33,877		10,010		5,134		4,175		27,423		198,168		68		294,306


Substandard	30		—		—		—		—		697		654		—		1,381
Total	15,481		33,877		10,010		5,134		4,175		28,120		198,822		68		295,687
Total loans	$	355,608	$	1,396,701	$	1,357,831	$	780,933	$	550,235	$	2,060,165	$	634,193	$	2,127	$	7,137,793

The following table presents the risk category of loans by class of loan and vintage as of December 31, 2021.


	Term Loans by Origination Year
(in thousands)	2021		2020		2019		2018		2017		Pre-2017		Revolving Loans		Revolving to Term	Total
Non-owner occupied commercial
Pass	$	363,459	$	516,131	$	295,944	$	189,592	$	195,733	$	562,338	$	18,795	—	$	2,141,992
Watch	—		—		25,292		14,660		4,641		47,011		130		—	91,734
Special mention	—		458		—		5,749		14,639		6,602		—		—	27,448
Substandard	119		431		332		2,656		8,000		43,572		—		—	55,110
Total	363,578		517,020		321,568		212,657		223,013		659,523		18,925		—	2,316,284
Owner occupied commercial
Pass	209,515		133,292		83,395		54,019		48,850		252,001		8,343		108	789,523
Watch	—		5,757		2,134		900		280		24,873		—		—	33,944
Special mention	—		9,694		21,837		12,632		95		17,851		—		—	62,109
Substandard	5		—		—		2,597		1,299		18,972		—		—	22,873
Total	209,520		148,743		107,366		70,148		50,524		313,697		8,343		108	908,449
Multifamily
Pass	225,060		255,016		72,438		71,366		73,122		207,509		18,161		1,281	923,953
Watch	—		966		—		13,709		854		6,497		—		—	22,026
Special mention	—		2,470		—		—		8,944		2,948		—		—	14,362
Substandard	—		—		5,485		1,321		—		4,987		99		—	11,892
Total	225,060		258,452		77,923		86,396		82,920		221,941		18,260		1,281	972,233






Non-owner occupied residential
Pass	28,476		18,527		16,928		15,695		18,048		51,194		7,288		—	156,156
Watch	—		—		—		—		651		5,057		—		—	5,708
Special mention	—		—		523		837		1,205		284		515		—	3,364
Substandard	—		3,062		510		4,797		988		2,512		—		—	11,869
Total	28,476		21,589		17,961		21,329		20,892		59,047		7,803		—	177,097








Commercial, industrial and other
Pass	100,921		23,940		65,225		11,636		3,808		37,479		191,293		872	435,174
Watch	939		461		446		—		1,378		173		5,056		—	8,453
Special mention	—		—		—		—		1,896		443		1,365		—	3,704
Substandard	101		7,352		—		1,276		496		422		5,428		—	15,075
Total	101,961		31,753		65,671		12,912		7,578		38,517		203,142		872	462,406






Construction
Pass	108,585		84,993		40,847		30,125		23,578		3,654		—		—	291,782

Special mention	—		—		—		—		10,446		—		—		—	10,446

Total	108,585		84,993		40,847		30,125		34,024		3,654		—		—	302,228






Equipment finance
Pass	50,482		30,486		27,626		10,238		3,128		803		—		—	122,763


Substandard	—		—		216		177		56		—		—		—	449
Total	50,482		30,486		27,842		10,415		3,184		803		—		—	123,212









Residential mortgage
Pass	171,442		112,680		27,228		20,784		9,103		96,510		—		—	437,747


Substandard	12		—		—		123		694		134		—		—	963
Total	171,454		112,680		27,228		20,907		9,797		96,644		—		—	438,710


	Term Loans by Origination Year
(in thousands)	2021		2020		2019		2018		2017		Pre-2017		Revolving Loans		Revolving to Term		Total
Consumer
Pass	35,283		10,476		5,358		4,561		3,260		24,888		190,481		34		274,341


Substandard	32		—		—		—		—		630		526		—		1,188
Total	35,315		10,476		5,358		4,561		3,260		25,518		191,007		34		275,529
Total loans	$	1,294,431	$	1,216,192	$	691,764	$	469,450	$	435,192	$	1,419,344	$	447,480	$	2,295	$	5,976,148

Age Analysis of Past Due Loans, Segregated by Class of Loans

The following tables present the payment status of the recorded investment in past due loans as of the periods noted, by class of loans.


March 31, 2022			Past Due
(in thousands)	Current		30 - 59 Days		60 - 89 Days		Greater than 89 days		Total		Total Loans
Non-owner occupied commercial	$	2,633,793	$	510	$	—	$	5,481	$	5,991	$	2,639,784
Owner occupied commercial	1,118,754		1,590		—		2,410		4,000		1,122,754
Multifamily	1,104,206		—		—		—		—		1,104,206
Non-owner occupied residential	222,461		788		116		2,430		3,334		225,795
Commercial, industrial and other	651,958		102		4,774		562		5,438		657,396
Construction	403,966		—		—		220		220		404,186
Equipment finance	123,727		124		44		48		216		123,943
Residential mortgage	560,615		1,706		—		1,721		3,427		564,042
Consumer	294,363		734		160		430		1,324		295,687
Total	$	7,113,843	$	5,554	$	5,094	$	13,302	$	23,950	$	7,137,793


December 31, 2021			Past Due
(in thousands)	Current		30 - 59 Days		60 - 89 Days		Greater than 89 days		Total		Total Loans
Non-owner occupied commercial	$	2,312,557	$	—	$	718	$	3,009	$	3,727	$	2,316,284
Owner occupied commercial	905,751		20		—		2,678		2,698		908,449
Multifamily	972,233		—		—		—		—		972,233
Non-owner occupied residential	174,245		—		136		2,716		2,852		177,097
Commercial, industrial and other	461,659		154		—		593		747		462,406
Construction	302,228		—		—		—		—		302,228
Equipment finance	122,923		211		41		37		289		123,212
Residential mortgage	437,574		255		64		817		1,136		438,710
Consumer	274,426		705		135		263		1,103		275,529
Total	$	5,963,596	$	1,345	$	1,094	$	10,113	$	12,552	$	5,976,148

Company's Non-Performing Assets and its Accruing Troubled Debt Restructurings, Excluding PCI Loans

The following tables present information on non-accrual loans at March 31, 2022 and December 31, 2021:


March 31, 2022
(in thousands)	Non-accrual		Interest Income Recognized on Non-accrual Loans		Amortized Cost Basis of Loans > 89 days Past due but still accruing		Amortized Cost Basis of Non-accrual Loans without Related Allowance
Non-owner occupied commercial	$	5,482	$	—	$	—	$	2,624
Owner occupied commercial	2,626		—		—		2,392

Non-owner occupied residential	2,430		—		—		2,145
Commercial, industrial and other	6,098		—		—		701
Construction	220		—		—		—
Equipment finance	51		—		—		—
Residential mortgage	1,935		—		—		—
Consumer	898		—		—		—
Total	$	19,740	$	—	$	—	$	7,862


December 31, 2021
(in thousands)	Non-accrual		Interest Income Recognized on Non-accrual Loans		Amortized Cost Basis of Loans > 89 days Past due but still accruing		Amortized Cost Basis of Non-accrual Loans without Related Allowance
Non-owner occupied commercial	$	3,009	$	—	$	—	$	2,624
Owner occupied commercial	2,810		—		—		2,398

Non-owner occupied residential	2,852		—		—		2,567
Commercial, industrial and other	6,763		—		—		1,122

Equipment finance	43		—		—		—
Residential mortgage	817		—		—		694
Consumer	687		—		1		—
Total	$	16,981	$	—	$	1	$	9,405

Financing Receivable, Purchased With Credit Deterioration

The following is a summary of the PCD loans acquired in the 1st Constitution acquisition as of the closing date.


(in thousands)	PCD Loans
Gross amortized cost basis at January 6, 2022	$	140,300
Interest component of expected cash flows (accretable difference)	(3,792)
Allowance for credit losses on PCD loans	(12,077)
Net PCD loans	$	124,431

The following summarizes the PCD loans acquired in the 1st Constitution acquisition as of the closing date, January 6, 2022.


(in thousands)	PCD Loans
Gross amortized cost basis	$	140,300
Interest component of expected cash flows (accretable difference)	(3,792)
Allowance for credit losses on PCD loans	(12,077)
Net PCD loans	$	124,431