Loans (Tables)

9 Months Ended

Sep. 30, 2023

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


(in thousands)	September 30, 2023		December 31, 2022
Non-owner occupied commercial	$	2,980,811	$	2,906,014
Owner occupied commercial	1,299,977		1,246,189
Multifamily	1,361,628		1,260,814
Non-owner occupied residential	208,560		218,026
Commercial, industrial and other	632,919		606,711
Construction	333,998		380,100
Equipment finance	174,946		151,574
Residential mortgage	956,535		765,552
Home equity and consumer	344,683		331,070
Total	$	8,294,057	$	7,866,050

Credit Quality Indicators

The following table presents the risk category of loans by class of loan and vintage as of September 30, 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	$	282,616	$	607,149	$	375,816	$	483,092	$	261,792	$	811,752	$	13,441	—	$	2,835,658
Watch	—		2,163		—		14,874		6,204		63,468		—		—	86,709
Special mention	—		740		—		4,919		2,999		19,331		—		—	27,989
Substandard	—		—		—		—		—		30,265		190		—	30,455
Total	282,616		610,052		375,816		502,885		270,995		924,816		13,631		—	2,980,811
Owner occupied commercial
Pass	45,560		329,969		224,064		151,745		89,835		342,321		9,639		2,589	1,195,722
Watch	—		—		3,705		1,681		3,351		31,793		250		—	40,780
Special mention	—		563		19,677		7,121		1,830		8,939		—		—	38,130
Substandard	—		—		450		14,137		4,876		5,882		—		—	25,345
Total	45,560		330,532		247,896		174,684		99,892		388,935		9,889		2,589	1,299,977
Multifamily
Pass	112,532		300,790		238,475		247,965		64,022		334,182		3,301		4,524	1,305,791
Watch	—		887		5,722		24,346		—		2,442		—		—	33,397
Special mention	—		500		—		2,382		3,804		13,544		—		—	20,230
Substandard	—		—		1,106		—		—		1,104		—		—	2,210
Total	112,532		302,177		245,303		274,693		67,826		351,272		3,301		4,524	1,361,628
Non-owner occupied residential
Pass	8,865		35,314		28,630		19,869		24,186		77,488		6,326		—	200,678
Watch	—		—		—		—		—		4,056		75		—	4,131
Special mention	—		—		—		—		497		1,494		—		—	1,991
Substandard	—		—		—		—		542		1,218		—		—	1,760
Total	8,865		35,314		28,630		19,869		25,225		84,256		6,401		—	208,560



Commercial, industrial and other
Pass	15,782		42,041		43,031		22,830		28,435		45,516		396,257		1,171	595,063
Watch	2,558		208		332		—		—		1,212		7,196		—	11,506
Special mention	94		—		4		—		175		1,515		2,261		—	4,049
Substandard	—		375		436		30		—		319		21,141		—	22,301
Total	18,434		42,624		43,803		22,860		28,610		48,562		426,855		1,171	632,919





Current YTD period:
Gross charge-offs	—		—		14		—		—		13		—		—	27
Construction
Pass	28,135		149,584		83,866		8,370		4,835		4,663		13,824		—	293,277
Watch	1,895		1,100		9,627		14,837		—		—		564		—	28,023

Substandard	—		—		—		—		—		12,698		—		—	12,698
Total	30,030		150,684		93,493		23,207		4,835		17,361		14,388		—	333,998








Current YTD period:
Gross charge-offs	—		13		—		—		—		—		—		—	13


	Term Loans by Origination Year
(in thousands)	2023		2022		2021		2020		2019		Pre-2019		Revolving Loans		Revolving to Term		Total
Equipment finance
Pass	62,946		61,210		26,615		12,904		7,937		1,130		—		—		172,742


Substandard	146		1,180		149		40		685		4		—		—		2,204
Total	63,092		62,390		26,764		12,944		8,622		1,134		—		—		174,946
Current YTD period:
Gross charge-offs	—		—		178		—		31		10		—		—		219




Residential mortgage
Pass	230,091		314,063		160,849		102,277		33,438		113,498		—		—		954,216


Substandard	—		—		249		428		454		1,188		—		—		2,319
Total	230,091		314,063		161,098		102,705		33,892		114,686		—		—		956,535




Consumer
Pass	18,759		41,834		28,878		7,449		3,622		20,173		222,636		—		343,351


Substandard	—		69		—		—		—		1,227		—		36		1,332
Total	18,759		41,903		28,878		7,449		3,622		21,400		222,636		36		344,683
Current YTD period:
Gross charge-offs	196		6		23		—		1		19		—		—		245

Total loans	$	809,979	$	1,889,739	$	1,251,681	$	1,141,296	$	543,519	$	1,952,422	$	697,101	$	8,320	$	8,294,057
Current YTD period:
Gross charge-offs	196		19		215		—		32		42		—		—		504

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.


September 30, 2023			Past Due
(in thousands)	Current		30 - 59 Days		60 - 89 Days		Greater than 89 days		Total		Total Loans
Non-owner occupied commercial	$	2,980,580	$	—	$	—	$	231	$	231	$	2,980,811
Owner occupied commercial	1,293,112		152		—		6,713		6,865		1,299,977
Multifamily	1,361,628		—		—		—		—		1,361,628
Non-owner occupied residential	208,414		146		—		—		146		208,560
Commercial, industrial and other	632,518		184		—		217		401		632,919
Construction	333,998		—		—		—		—		333,998
Equipment finance	173,380		601		508		457		1,566		174,946
Residential mortgage	945,995		7,551		1,645		1,344		10,540		956,535
Consumer	343,525		630		—		528		1,158		344,683
Total	$	8,273,150	$	9,264	$	2,153	$	9,490	$	20,907	$	8,294,057


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 September 30, 2023 and December 31, 2022:


September 30, 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	$	798	$	—	$	—	$	—
Owner occupied commercial	7,026		—		—		6,634
Multifamily	1,106		—		—		1,106
Non-owner occupied residential	—		—		—		—
Commercial, industrial and other	217		—		—		—
Construction	—		—		—		—
Equipment finance	626		—		—		—
Residential mortgage	2,319		—		—		—
Consumer	1,331		—		—		—
Total	$	13,423	$	—	$	—	$	7,740


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
Multifamily	—		—		—		—
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