Loans (Tables)

6 Months Ended

Jun. 30, 2022

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


(in thousands)	June 30, 2022		December 31, 2021
Non-owner occupied commercial	$	2,777,003	$	2,316,284
Owner occupied commercial	1,179,527		908,449
Multifamily	1,134,938		972,233
Non-owner occupied residential	221,339		177,097
Commercial, industrial and other	657,935		462,406
Construction	370,777		302,228
Equipment finance	134,136		123,212
Residential mortgage	622,417		438,710
Home equity and consumer	310,468		275,529
Total	$	7,408,540	$	5,976,148

Credit Quality Indicators

The following table presents the risk category of loans by class of loan and vintage as of June 30, 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	$	384,345	$	391,076	$	549,572	$	284,618	$	202,346	$	745,838	$	17,575	—	$	2,575,370
Watch	—		—		8,411		25,805		23,056		66,973		305		—	124,550
Special mention	—		—		955		14,320		5,678		29,048		—		—	50,001
Substandard	—		—		—		842		135		26,105		—		—	27,082
Total	384,345		391,076		558,938		325,585		231,215		867,964		17,880		—	2,777,003
Owner occupied commercial
Pass	109,598		227,056		183,891		92,936		76,526		338,059		12,757		—	1,040,823
Watch	—		—		9,549		7,135		7,071		32,358		—		—	56,113
Special mention	599		—		—		7,547		3,131		17,285		—		—	28,562
Substandard	—		—		11,147		18,968		2,180		21,734		—		—	54,029
Total	110,197		227,056		204,587		126,586		88,908		409,436		12,757		—	1,179,527
Multifamily
Pass	142,907		227,382		277,456		65,923		96,550		289,520		3,499		170	1,103,407
Watch	—		9		—		—		1,308		4,703		—		—	6,020
Special mention	162		—		2,445		3,904		—		14,234		—		—	20,745
Substandard	—		—		—		—		—		4,766		—		—	4,766
Total	143,069		227,391		279,901		69,827		97,858		313,223		3,499		170	1,134,938
Non-owner occupied residential
Pass	20,118		30,678		22,358		22,310		16,810		74,016		7,787		367	194,444
Watch	—		—		2,536		4,136		3,384		7,584		75		—	17,715
Special mention	—		—		—		627		829		5,852		—		—	7,308
Substandard	—		—		—		—		—		1,822		50		—	1,872
Total	20,118		30,678		24,894		27,073		21,023		89,274		7,912		367	221,339



Commercial, industrial and other
Pass	17,959		67,348		24,424		66,410		14,219		41,999		380,592		973	613,924
Watch	—		1,106		7,300		359		(1)		1,274		14,260		—	24,298
Special mention	—		—		—		2,862		46		2,577		1,238		—	6,723
Substandard	—		96		125		846		5,609		824		5,490		—	12,990
Total	17,959		68,550		31,849		70,477		19,873		46,674		401,580		973	657,935




Construction
Pass	32,411		171,287		77,972		35,700		9,982		5,059		10,322		—	342,733
Watch	—		—		—		999		13,500		—		612		—	15,111
Special mention	250		—		2,227		—		—		—		—		—	2,477
Substandard	—		—		—		—		—		10,456		—		—	10,456
Total	32,661		171,287		80,199		36,699		23,482		15,515		10,934		—	370,777








Equipment finance
Pass	36,420		42,348		25,403		21,294		6,838		1,732		—		—	134,035


Substandard	—		—		—		47		53		1		—		—	101
Total	36,420		42,348		25,403		21,341		6,891		1,733		—		—	134,136





Residential mortgage
Pass	160,644		172,440		113,014		35,930		21,742		116,327		—		—	620,097


Substandard	—		—		—		455		328		1,537		—		—	2,320
Total	160,644		172,440		113,014		36,385		22,070		117,864		—		—	622,417


	Term Loans by Origination Year
(in thousands)	2022		2021		2020		2019		2018		Pre-2018		Revolving Loans		Revolving to Term		Total
Consumer
Pass	27,484		32,985		9,498		4,608		3,780		25,172		205,305		—		308,832


Substandard	33		—		—		—		—		953		650		—		1,636
Total	27,517		32,985		9,498		4,608		3,780		26,125		205,955		—		310,468
Total loans	$	932,930	$	1,363,811	$	1,328,283	$	718,581	$	515,100	$	1,887,808	$	660,517	$	1,510	$	7,408,540

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.


June 30, 2022			Past Due
(in thousands)	Current		30 - 59 Days		60 - 89 Days		Greater than 89 days		Total		Total Loans
Non-owner occupied commercial	$	2,776,310	$	364	$	—	$	329	$	693	$	2,777,003
Owner occupied commercial	1,176,764		1,538		928		297		2,763		1,179,527
Multifamily	1,134,938		—		—		—		—		1,134,938
Non-owner occupied residential	220,207		294		230		608		1,132		221,339
Commercial, industrial and other	653,324		76		—		4,535		4,611		657,935
Construction	370,777		—		—		—		—		370,777
Equipment finance	133,686		347		49		54		450		134,136
Residential mortgage	618,384		2,604		—		1,429		4,033		622,417
Consumer	309,404		237		398		429		1,064		310,468
Total	$	7,393,794	$	5,460	$	1,605	$	7,681	$	14,746	$	7,408,540


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 June 30, 2022 and December 31, 2021:


June 30, 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	$	324	$	—	$	—	$	—
Owner occupied commercial	12,587		—		—		12,084

Non-owner occupied residential	839		—		—		462
Commercial, industrial and other	4,882		—		—		288

Equipment finance	112		—		—		—
Residential mortgage	2,249		—		—		210
Consumer	1,168		—		—		—
Total	$	22,161	$	—	$	—	$	13,044


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