Loans (Tables)

3 Months Ended

Mar. 31, 2023

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


(in thousands)	March 31, 2023		December 31, 2022
Non-owner occupied commercial	$	2,943,897	$	2,906,014
Owner occupied commercial	1,205,635		1,246,189
Multifamily	1,275,771		1,260,814
Non-owner occupied residential	210,203		218,026
Commercial, industrial and other	562,677		606,711
Construction	404,994		380,100
Equipment finance	161,889		151,574
Residential mortgage	857,427		765,552
Home equity and consumer	330,060		331,070
Total	$	7,952,553	$	7,866,050

Credit Quality Indicators

The following table presents the risk category of loans by class of loan and vintage as of March 31, 2023.


	Term Loans by Origination Year
(in thousands)	2023		2022		2021		2020		2019		Pre-2019		Revolving Loans		Revolving to Term	Total
Non-owner occupied commercial
Pass	$	76,797	$	673,699	$	385,422	$	490,130	$	285,439	$	855,149	$	16,413	—	$	2,783,049
Watch	—		1,266		—		21,546		8,908		62,092		—		—	93,812
Special mention	—		—		—		5,476		824		29,599		—		—	35,899
Substandard	—		—		—		—		—		31,137		—		—	31,137
Total	76,797		674,965		385,422		517,152		295,171		977,977		16,413		—	2,943,897
Owner occupied commercial
Pass	9,281		264,688		192,035		155,887		81,383		376,200		13,061		337	1,092,872
Watch	—		—		3,926		1,697		3,428		31,468		1,540		—	42,059
Special mention	—		578		16,933		5,705		4,924		18,671		—		—	46,811
Substandard	—		—		97		14,669		1,883		7,244		—		—	23,893
Total	9,281		265,266		212,991		177,958		91,618		433,583		14,601		337	1,205,635
Multifamily
Pass	42,496		303,711		219,965		263,675		66,132		335,446		1,085		—	1,232,510
Watch	—		—		5,785		11,674		—		2,483		—		—	19,942
Special mention	—		500		—		2,408		3,844		11,203		—		—	17,955
Substandard	—		—		—		—		—		5,364		—		—	5,364
Total	42,496		304,211		225,750		277,757		69,976		354,496		1,085		—	1,275,771
Non-owner occupied residential
Pass	1,516		36,575		29,077		20,250		25,280		81,870		5,301		—	199,869
Watch	—		—		—		—		—		5,412		75		—	5,487
Special mention	—		—		—		—		1,040		2,093		—		—	3,133
Substandard	—		—		—		—		—		1,714		—		—	1,714
Total	1,516		36,575		29,077		20,250		26,320		91,089		5,376		—	210,203



Commercial, industrial and other
Pass	5,943		48,052		47,449		26,114		42,404		49,927		296,529		462	516,880
Watch	—		237		643		211		260		2,716		7,908		—	11,975
Special mention	—		1,145		245		—		158		2,257		23,971		—	27,776
Substandard	—		—		217		—		434		3,058		2,337		—	6,046
Total	5,943		49,434		48,554		26,325		43,256		57,958		330,745		462	562,677





Construction
Pass	9,154		101,953		177,536		25,512		32,093		4,685		20,934		—	371,867
Watch	—		1,455		5,913		11,758		—		—		323		—	19,449

Substandard	—		—		95		—		—		13,583		—		—	13,678
Total	9,154		103,408		183,544		37,270		32,093		18,268		21,257		—	404,994








Equipment finance
Pass	22,953		71,381		32,882		17,975		13,314		3,000		—		—	161,505


Substandard	—		100		91		55		109		29		—		—	384
Total	22,953		71,481		32,973		18,030		13,423		3,029		—		—	161,889
Current YTD period:
Gross charge-offs	—		—		61		—		—		—		—		—	61


	Term Loans by Origination Year
(in thousands)	2023		2022		2021		2020		2019		Pre-2019		Revolving Loans		Revolving to Term		Total

Residential mortgage
Pass	104,154		319,686		165,213		109,090		34,879		122,487		—		—		855,509


Substandard	—		—		—		—		471		1,447		—		—		1,918
Total	104,154		319,686		165,213		109,090		35,350		123,934		—		—		857,427




Consumer
Pass	5,440		44,471		30,291		8,383		3,966		22,741		213,637		—		328,929


Substandard	—		—		—		—		—		768		31		332		1,131
Total	5,440		44,471		30,291		8,383		3,966		23,509		213,668		332		330,060
Current YTD period:
Gross charge-offs	65		6		6		—		1		—		—		—		78

Total loans	$	277,734	$	1,869,497	$	1,313,815	$	1,192,215	$	611,173	$	2,083,843	$	603,145	$	1,131	$	7,952,553
Current YTD period:
Gross charge-offs	65		6		67		—		1		—		—		—		139

The following table presents the risk category of loans by class of loan and vintage as of December 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	$	673,235	$	391,748	$	495,618	$	271,109	$	183,971	$	703,852	$	19,317	2,502		$	2,741,352
Watch	1,272		—		21,720		26,906		12,099		48,314		—		—		110,311
Special mention	—		—		494		830		15,586		16,304		—		—		33,214
Substandard	—		—		—		—		133		21,004		—		—		21,137
Total	674,507		391,748		517,832		298,845		211,789		789,474		19,317		2,502		2,906,014
Owner occupied commercial
Pass	267,754		198,131		191,603		85,343		61,581		317,434		13,328		—		1,135,174
Watch	—		—		2,888		3,520		4,728		28,659		75		—		39,870
Special mention	585		17,778		5,749		1,862		3,701		20,292		—		—		49,967
Substandard	—		97		8,876		1,899		475		9,831		—		—		21,178
Total	268,339		216,006		209,116		92,624		70,485		376,216		13,403		—		1,246,189
Multifamily
Pass	312,910		221,306		265,187		67,072		95,432		249,021		5,288		—		1,216,216
Watch	—		5,817		11,692		—		—		2,504		—		—		20,013
Special mention	500		—		2,421		—		—		11,274		—		—		14,195
Substandard	—		—		—		3,864		—		6,526		—		—		10,390
Total	313,410		227,123		279,300		70,936		95,432		269,325		5,288		—		1,260,814






Non-owner occupied residential
Pass	37,445		29,365		22,133		24,205		18,489		67,114		7,513		21		206,285
Watch	—		—		—		2,068		—		5,244		75		—		7,387
Special mention	—		—		—		507		822		1,017		—		—		2,346
Substandard	—		—		—		—		—		2,008		—		—		2,008
Total	37,445		29,365		22,133		26,780		19,311		75,383		7,588		21		218,026







Commercial, industrial and other
Pass	48,719		51,894		27,644		57,124		13,936		39,892		339,040		245		578,494
Watch	251		704		237		211		—		1,424		10,001		—		12,828
Special mention	375		258		—		179		36		378		4,878		—		6,104
Substandard	776		242		—		450		4,722		183		2,912		—		9,285
Total	50,121		53,098		27,881		57,964		18,694		41,877		356,831		245		606,711






Construction
Pass	79,420		172,849		35,295		31,447		7,245		4,005		19,294		—		349,555
Watch	1,159		5,480		10,299		—		—		—		171		—		17,109

Substandard	—		95		—		—		—		13,341		—		—		13,436
Total	80,579		178,424		45,594		31,447		7,245		17,346		19,465		—		380,100






Equipment finance
Pass	74,840		36,087		20,382		15,738		3,862		546		—		—		151,455


Substandard	—		—		—		97		22		—		—		—		119
Total	74,840		36,087		20,382		15,835		3,884		546		—		—		151,574







Residential mortgage
Pass	323,636		167,791		110,199		35,180		20,218		106,391		—		—		763,415


Substandard	—		—		—		490		341		1,306		—		—		2,137
Total	323,636		167,791		110,199		35,670		20,559		107,697		—		—		765,552








Consumer
Pass	47,282		31,368		8,658		4,143		3,093		21,482		213,857		—		329,883


Substandard	33		—		—		—		23		853		278		—		1,187
Total	47,315		31,368		8,658		4,143		3,116		22,335		214,135		—		331,070
Total loans	$	1,870,192	$	1,331,010	$	1,241,095	$	634,244	$	450,515	$	1,700,199	$	636,027	$	2,768	$	7,866,050

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, 2023			Past Due
(in thousands)	Current		30 - 59 Days		60 - 89 Days		Greater than 89 days		Total		Total Loans
Non-owner occupied commercial	$	2,943,274	$	—	$	—	$	623	$	623	$	2,943,897
Owner occupied commercial	1,197,244		1,288		—		7,103		8,391		1,205,635
Multifamily	1,275,187		—		—		584		584		1,275,771
Non-owner occupied residential	210,186		—		17		—		17		210,203
Commercial, industrial and other	560,510		—		—		2,167		2,167		562,677
Construction	404,014		—		—		980		980		404,994
Equipment finance	160,504		946		408		31		1,385		161,889
Residential mortgage	852,974		3,395		—		1,058		4,453		857,427
Consumer	328,326		1,066		273		395		1,734		330,060
Total	$	7,932,219	$	6,695	$	698	$	12,941	$	20,334	$	7,952,553


December 31, 2022			Past Due
(in thousands)	Current		30 - 59 Days		60 - 89 Days		Greater than 89 days		Total		Total Loans
Non-owner occupied commercial	$	2,905,049	$	346	$	—	$	619	$	965	$	2,906,014
Owner occupied commercial	1,235,134		2,854		477		7,724		11,055		1,246,189
Multifamily	1,260,135		—		679		—		679		1,260,814
Non-owner occupied residential	217,407		178		—		441		619		218,026
Commercial, industrial and other	603,731		55		3		2,922		2,980		606,711
Construction	379,120		—		—		980		980		380,100
Equipment finance	150,842		494		238		—		732		151,574
Residential mortgage	760,638		3,031		271		1,612		4,914		765,552
Consumer	330,119		841		62		48		951		331,070
Total	$	7,842,175	$	7,799	$	1,730	$	14,346	$	23,875	$	7,866,050

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, 2023 and December 31, 2022:


March 31, 2023
(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	$	908	$	—	$	—	$	—
Owner occupied commercial	8,757		—		—		8,482
Multifamily	584		—		—		—
Non-owner occupied residential	—		—		—		—
Commercial, industrial and other	2,221		—		—		—
Construction	980		—		—		980
Equipment finance	379		—		—		—
Residential mortgage	1,918		—		—		—
Consumer	1,131		—		—		72
Total	$	16,878	$	—	$	—	$	9,534


December 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	$	618	$	—	$	—	$	—
Owner occupied commercial	9,439		—		—		8,859

Non-owner occupied residential	441		—		—		440
Commercial, industrial and other	2,978		—		—		—
Construction	980		—		—		980
Equipment finance	114		—		—		—
Residential mortgage	2,011		—		—		—
Consumer	781		—		—		79
Total	$	17,362	$	—	$	—	$	10,358

Financing Receivable, Purchased With Credit Deterioration

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