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LOANS AND CREDIT QUALITY - (Tables)
12 Months Ended
Dec. 31, 2022
Receivables [Abstract]  
Loans Held for Investment LHFI consists of the following:
At December 31,
(in thousands)20222021
CRE
Non-owner occupied CRE$658,085 $705,359 
Multifamily3,975,754 2,415,359 
Construction/land development627,663 496,144 
Total5,261,502 3,616,862 
Commercial and industrial loans
Owner occupied CRE443,363 457,706 
Commercial business359,747 401,872 
Total
803,110 859,578 
Consumer loans
Single family 1,009,001 763,331 
Home equity and other352,707 303,078 
Total (1)
1,361,708 1,066,409 
                  Total LHFI7,426,320 5,542,849 
ACL
(41,500)(47,123)
Total LHFI less ACL
$7,384,820 $5,495,726 
(1)    Includes $5.9 million and $7.3 million at December 31, 2022 and 2021, respectively, of loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated income statements.
Schedule of Related Party Transactions The following is a summary of activity during the years ended December 2022 and 2021 with respect to such aggregate loans to these related parties and their associates:
Years Ended December 31,
(in thousands)20222021
Beginning balance$1,548 $73 
New loans and advances, net of principal repayments430 1,475 
Ending balance$1,978 $1,548 
Activity in the allowance for credit losses
Activity in the ACL for LHFI and the allowance for unfunded commitments was as follows:
 Years Ended December 31,
(in thousands)202220212020
Beginning balance$47,123 $64,294 $41,772 
Provision for credit losses(4,995)(15,816)21,843 
Net (charge-offs) recoveries(628)(1,355)(1,164)
Impact of ASC 326 adoption
— — 1,843 
Ending balance$41,500 $47,123 $64,294 
Allowance for unfunded commitments
Beginning balance$2,404 $1,588 $1,065 
Provision for credit losses(207)816 (1,374)
Impact of ASC 326 adoption
— — 1,897 
Ending balance$2,197 $2,404 $1,588 
Provision for credit losses:
Allowance for credit losses-loans$(4,995)$(15,816)$21,843 
Allowance for unfunded commitments(207)816 (1,374)
Total$(5,202)$(15,000)$20,469 

Activity in the ACL by loan portfolio and loan sub-class was as follows:

Year Ended December 31, 2022
(in thousands)Beginning
balance
Charge-offsRecoveriesProvisionEnding
balance
CRE
Non-owner occupied CRE$7,509 $— $— $(5,407)$2,102 
Multifamily5,854 — — 5,120 10,974 
Construction/land development
Multifamily construction507 — — 491 998 
CRE construction150 — — 46 196 
Single family construction6,411 — — 6,007 12,418 
Single family construction to permanent1,055 — — 116 1,171 
Total21,486 — — 6,373 27,859 
Commercial and industrial loans
Owner occupied CRE5,006 — — (3,976)1,030 
Commercial business12,273 (1,098)163 (8,091)3,247 
Total17,279 (1,098)163 (12,067)4,277 
Consumer loans
Single family4,394 — 143 1,073 5,610 
Home equity and other3,964 (168)332 (374)3,754 
Total8,358 (168)475 699 9,364 
Total ACL$47,123 $(1,266)$638 $(4,995)$41,500 
Year Ended December 31, 2021
(in thousands)Beginning balanceCharge-offsRecoveriesProvisionEnding
balance
CRE
Non-owner occupied CRE$8,845 $— $— $(1,336)$7,509 
Multifamily6,072 — — (218)5,854 
Construction/land development
Multifamily construction4,903 — — (4,396)507 
CRE construction1,670 — — (1,520)150 
Single family construction5,130 — — 1,281 6,411 
Single family construction to permanent1,315 — — (260)1,055 
Total27,935 — — (6,449)21,486 
Commercial and industrial loans
Owner occupied CRE4,994 — — 12 5,006 
Commercial business17,043 (1,739)146 (3,177)12,273 
Total22,037 (1,739)146 (3,165)17,279 
Consumer loans
Single family6,906 (127)291 (2,676)4,394 
Home equity and other7,416 (483)557 (3,526)3,964 
Total14,322 (610)848 (6,202)8,358 
Total ACL$64,294 $(2,349)$994 $(15,816)$47,123 

Year Ended December 31, 2020
(in thousands)Prior to adoption of ASC 326Impact of ASC 326 adoptionCharge-offsRecoveriesProvisionEnding
balance
CRE
Non-owner occupied CRE$7,245 $(3,392)$— $— $4,992 $8,845 
Multifamily7,015 (2,977)— — 2,034 6,072 
Construction/land development
Multifamily construction2,848 693 — — 1,362 4,903 
CRE construction624 (115)— — 1,161 1,670 
Single family construction3,800 4,280 — 163 (3,113)5,130 
Single family construction to permanent1,003 200 — — 112 1,315 
Total22,535 (1,311)— 163 6,548 27,935 
Commercial and industrial loans
Owner occupied CRE3,639 (2,459)(896)— 4,710 4,994 
Commercial business2,915 510 (640)110 14,148 17,043 
Total6,554 (1,949)(1,536)110 18,858 22,037 
Consumer loans
Single family6,450 468 (17)187 (182)6,906 
Home equity and other6,233 4,635 (456)385 (3,381)7,416 
Total12,683 5,103 (473)572 (3,563)14,322 
Total ACL$41,772 $1,843 $(2,009)$845 $21,843 $64,294 
Designated loan grades by loan portfolio segment and loan class
The following table presents a vintage analysis of the commercial portfolio segment by loan sub-class and risk rating or delinquency status:
At December 31, 2022
(in thousands)202220212020201920182017 and priorRevolvingRevolving-termTotal
COMMERCIAL PORTFOLIO
Non-owner occupied CRE
Pass$68,301 $68,356 $42,181 $139,760 $87,197 $242,544 $2,016 $786 $651,141 
Special Mention— — — — 2,702 4,242 — — 6,944 
Substandard— — — — — — — — — 
Total 68,301 68,356 42,181 139,760 89,899 246,786 2,016 786 658,085 
Multifamily
Pass1,828,568 1,165,434 528,077 221,974 59,340 140,126 — — 3,943,519 
Special Mention— — 4,893 19,834 — 7,508 — — 32,235 
Substandard— — — — — — — — — 
Total1,828,568 1,165,434 532,970 241,808 59,340 147,634 — — 3,975,754 
Multifamily construction
Pass18,110 63,394 13,613 — — — — — 95,117 
Special Mention— — — — — — — — — 
Substandard— — — — — — — — — 
Total18,110 63,394 13,613 — — — — — 95,117 
CRE construction
Pass341 14,348 3,960 — — 305 — — 18,954 
Special Mention— — — — — — — — — 
Substandard— — — — — — — — — 
Total 341 14,348 3,960 — — 305 — — 18,954 
Single family construction
Pass149,133 50,936 24,807 519 — 74 123,303 — 348,772 
Special Mention— — — — — — — — — 
Substandard— 6,782 — — — — — — 6,782 
Total 149,133 57,718 24,807 519 — 74 123,303 — 355,554 
Single family construction to permanent
Current
66,034 76,814 11,128 3,268 794 — — — 158,038 
Past due:
30-59 days
— — — — — — — — — 
60-89 days
— — — — — — — — — 
90+ days
— — — — — — — — — 
Total 66,034 76,814 11,128 3,268 794 — — — 158,038 
Owner occupied CRE
Pass70,192 51,919 44,778 71,652 36,457 139,691 1,104 415,796 
Special Mention— 743 — — 6,179 13,485 — — 20,407 
Substandard— — — — 2,149 5,011 — — 7,160 
Total 70,192 52,662 44,778 71,652 44,785 158,187 1,104 443,363 
Commercial business
Pass65,566 42,921 45,940 18,594 13,548 18,779 130,427 2,041 337,816 
Special Mention— 612 — 3,577 3,444 403 — 8,045 
Substandard— 338 2,638 4,449 2,591 2,206 1,563 101 13,886 
Total 65,566 43,871 48,578 26,620 16,148 24,429 132,393 2,142 359,747 
Total commercial portfolio$2,266,245 $1,542,597 $722,015 $483,627 $210,966 $577,415 $257,715 $4,032 $6,064,612 
The following table presents a vintage analysis of the consumer portfolio segment by loan sub-class and delinquency status:

At December 31, 2022
(in thousands)202220212020201920182017 and priorRevolvingRevolving-termTotal
CONSUMER PORTFOLIO
Single family
Current
$273,786 $253,937 $152,773 $49,302 $43,511 $231,277 $— $— $1,004,586 
Past due:
30-59 days
— — — — 340 2,113 — — 2,453 
60-89 days
— — — — — 258 — — 258 
90+ days
— — — 290 273 1,141 — — 1,704 
Total (1)
273,786 253,937 152,773 49,592 44,124 234,789 — — 1,009,001 
Home equity and other
Current
4,156 692 220 150 72 1,593 340,567 4,017 351,467 
Past due:
30-59 days
— — — — 446 — 461 
60-89 days
24 — — — 48 517 — 595 
90+ days
— — — — — 151 33 — 184 
Total4,162 722 220 150 72 1,801 341,563 4,017 352,707 
Total consumer portfolio$277,948 $254,659 $152,993 $49,742 $44,196 $236,590 $341,563 $4,017 $1,361,708 
Total LHFI$2,544,193 $1,797,256 $875,008 $533,369 $255,162 $814,005 $599,278 $8,049 $7,426,320 
(1)    Includes $5.9 million of loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated income statements.
The following table presents a vintage analysis of the commercial portfolio segment by loan sub-class and risk rating or delinquency status:
At December 31, 2021
(in thousands)202120202019201820172016 and priorRevolvingRevolving-termTotal
COMMERCIAL PORTFOLIO
Non-owner occupied CRE
Pass$68,647 $50,571 $169,711 $130,877 $100,674 $183,024 $963 $892 $705,359 
Special Mention— — — — — — — — — 
Substandard— — — — — — — — — 
Total68,647 50,571 169,711 130,877 100,674 183,024 963 892 705,359 
Multifamily
Pass1,315,204 561,666 286,826 60,372 26,065 165,225 — 2,415,359 
Special Mention— — — — — — — — — 
Substandard— — — — — — — — — 
Total1,315,204 561,666 286,826 60,372 26,065 165,225 — 2,415,359 
Multifamily construction
Pass7,825 22,863 7,173 — — — — — 37,861 
Special Mention— — — — — — — — — 
Substandard— — — — — — — — — 
Total7,825 22,863 7,173 — — — — — 37,861 
CRE construction
Pass7,694 3,960 — 1,962 — 556 — — 14,172 
Special Mention— — — — — — — — — 
Substandard— — — — — — — — — 
Total7,694 3,960 — 1,962 — 556 — — 14,172 
Single family construction
Pass146,595 35,640 14,509 — — 77 99,206 — 296,027 
Special Mention— — — — — — — — — 
Substandard— — — — — — — — — 
Total146,595 35,640 14,509 — — 77 99,206 — 296,027 
Single family construction to permanent
Current
90,311 42,636 13,362 1,775 — — — — 148,084 
Past due:
30-59 days
— — — — — — — — — 
60-89 days
— — — — — — — — — 
90+ days
— — — — — — — — — 
Total90,311 42,636 13,362 1,775 — — — — 148,084 
Owner occupied CRE
Pass70,902 47,536 57,423 47,716 67,042 106,659 798 2,839 400,915 
Special Mention— — — 2,196 6,019 145 — 60 8,420 
Substandard— — 18,665 1,111 10,151 18,444 — — 48,371 
Total70,902 47,536 76,088 51,023 83,212 125,248 798 2,899 457,706 
Commercial business
Pass88,139 51,453 44,882 24,711 11,859 21,258 112,759 2,104 357,165 
Special Mention— — 7,396 — 4,396 — 5,613 134 17,539 
Substandard9,716 3,399 1,667 5,928 1,096 1,328 3,932 102 27,168 
Total97,855 54,852 53,945 30,639 17,351 22,586 122,304 2,340 401,872 
Total commercial portfolio$1,805,033 $819,724 $621,614 $276,648 $227,302 $496,716 $223,272 $6,131 $4,476,440 
The following table presents a vintage analysis of the consumer portfolio segment by loan sub-class and delinquency status:

At December 31, 2021
(in thousands)202120202019201820172016 and priorRevolvingRevolving-termTotal
CONSUMER PORTFOLIO
Single family
Current
$176,110 $156,360 $62,369 $66,063 $95,988 $204,229 $— $— $761,119 
Past due:
30-59 days
— — 291 — — — — — 291 
60-89 days
— — — — 314 471 — — 785 
90+ days
— — 561 452 — 123 — — 1,136 
Total (1)
176,110 156,360 63,221 66,515 96,302 204,823 — — 763,331 
Home equity and other
Current
2,005 474 393 532 516 2,609 290,512 5,273 302,314 
Past due:
30-59 days
— — — — 94 40 — 137 
60-89 days
— — — — — — 12 62 74 
90+ days
— — — — 544 — 553 
Total2,008 477 393 532 516 2,709 291,108 5,335 303,078 
Total consumer portfolio$178,118 $156,837 $63,614 $67,047 $96,818 $207,532 $291,108 $5,335 $1,066,409 
Total LHFI$1,983,151 $976,561 $685,228 $343,695 $324,120 $704,248 $514,380 $11,466 $5,542,849 
(1)    Includes $7.3 million of loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated income statements.
Schedule of collateral dependent loans
The following table presents the amortized cost basis of collateral-dependent loans by loan sub-class and collateral type:
At December 31, 2022
(in thousands)Land1-4 FamilyNon-residential real estateOther non-real estateTotal
Commercial and industrial loans
Owner occupied CRE$1,111 $— $1,410 $— $2,521 
Commercial business
62 3,186 562 — 3,810 
 Total collateral-dependent loans$1,173 $3,186 $1,972 $— $6,331 

At December 31, 2021
(in thousands)Land1-4 FamilyNon-residential real estateOther non-real estateTotal
Commercial and industrial loans
Owner occupied CRE$1,111 $— $2,456 $— $3,567 
Commercial business362 27 562 286 1,237 
   Total 1,473 27 3,018 286 4,804 
Consumer loans
Single family
— 1,598 — — 1,598 
Home equity loans and other— 19 — — 19 
   Total— 1,617 — — 1,617 
 Total collateral-dependent loans$1,473 $1,644 $3,018 $286 $6,421 
Schedule of loans on nonaccrual with no related allowance for credit loss
The following table presents nonaccrual status for loans:
At December 31, 2022At December 31, 2021
(in thousands)Nonaccrual with no related ACLTotal NonaccrualNonaccrual with no related ACLTotal Nonaccrual
Commercial and industrial loans
 Owner occupied CRE$2,521 $2,521 $3,568 $3,568 
 Commercial business785 4,269 1,210 5,023 
Total
3,306 6,790 4,778 8,591 
Consumer loans
Single family332 2,584 1,324 2,802 
Home equity and other681 23 808 
Total335 3,265 1,347 3,610 
Total nonaccrual loans$3,641 $10,055 $6,125 $12,201 
Past due loans by loan portfolio segment and loan class
The following tables present an aging analysis of past due loans by loan portfolio segment and loan sub-class:
At December 31, 2022
Past Due and Still Accruing
(in thousands)
30-59 days

60-89 days

90 days or more
Nonaccrual
Total past
due and nonaccrual (1)
CurrentTotal
loans
CRE
Non-owner occupied CRE$— $— $— $— $— $658,085 $658,085 
Multifamily— — — — — 3,975,754 3,975,754 
Construction/land development
Multifamily construction— — — — — 95,117 95,117 
CRE construction— — — — — 18,954 18,954 
Single family construction— — — — — 355,554 355,554 
Single family construction to permanent— — — — — 158,038 158,038 
Total
— — — — — 5,261,502 5,261,502 
Commercial and industrial loans
Owner occupied CRE— — — 2,521 2,521 440,842 443,363 
Commercial business— — — 4,269 4,269 355,478 359,747 
Total— — — 6,790 6,790 796,320 803,110 
Consumer loans
Single family
4,556 1,724 4,372 (2)2,584 13,236 995,765 1,009,001 (3)
Home equity and other267 296 — 681 1,244 351,463 352,707 
Total4,823 2,020 4,372 3,265 14,480 1,347,228 1,361,708 
Total loans$4,823 $2,020 $4,372 $10,055 $21,270 $7,405,050 $7,426,320 
%0.06 %0.03 %0.06 %0.14 %0.29 %99.71 %100.00 %
At December 31, 2021
Past Due and Still Accruing
(in thousands)30-59 days60-89 days90 days or moreNonaccrual
Total past
due and nonaccrual (1)
CurrentTotal
loans
CRE
Non-owner occupied CRE$— $— $— $— $— $705,359 $705,359 
Multifamily— — — — — 2,415,359 2,415,359 
Construction/land development
Multifamily construction— — — — — 37,861 37,861 
CRE construction— — — — — 14,172 14,172 
Single family construction— — — — — 296,027 296,027 
Single family construction to permanent— — — — — 148,084 148,084 
Total
— — — — — 3,616,862 3,616,862 
Commercial and industrial loans
Owner occupied CRE— — — 3,568 3,568 454,138 457,706 
Commercial business198 — — 5,023 5,221 396,651 401,872 
Total
198 — — 8,591 8,789 850,789 859,578 
Consumer loans
Single family
892 820 6,717 (2)2,802 11,231 752,100 763,331 (3)
Home equity and other118 74 — 808 1,000 302,078 303,078 
Total1,010 894 6,717 3,610 12,231 1,054,178 1,066,409 
Total loans$1,208 $894 $6,717 $12,201 $21,020 $5,521,829 $5,542,849 
%0.02 %0.02 %0.12 %0.22 %0.38 %99.62 %100.00 %
(1)Includes loans whose repayments are insured by the FHA or guaranteed by the VA or SBA of $10.6 million and $8.4 million at December 31, 2022 and 2021, respectively.
(2)FHA-insured and VA-guaranteed single family loans that are 90 days or more past due are maintained on accrual status if they are determined to have little to no risk of loss.
(3)Includes $5.9 million and $7.3 million of loans at December 31, 2022 and 2021, respectively, where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in our consolidated income statements.
Financing Receivable, Modified The following tables provide information related to MFDBs during the year ended December 31, 2022, disaggregated by class of financing receivable and type of concession granted:
Significant Payment Delay
Year Ended December 31, 2022
(in thousands)Amortized Cost Basis at Period End% of Total Class of Financing Receivable
Single family$1,377 0.14 %
Home equity and other69 0.02 %
Term Extension
Year Ended December 31, 2022
(in thousands)Amortized Cost Basis at Period End% of Total Class of Financing Receivable
Commercial business$1,562 0.43 %
Single family269 0.03 %
Interest Rate Reduction and Significant Payment Delay
Year Ended December 31, 2022
(in thousands)Amortized Cost Basis at Period End% of Total Class of Financing Receivable
Commercial business$459 0.13 %
Interest Rate Reduction and Term Extension
Year Ended December 31, 2022
(in thousands)Amortized Cost Basis at Period End% of Total Class of Financing Receivable
Single family$814 0.08 %
Significant Payment Delay and Term Extension
Year Ended December 31, 2022
(in thousands)Amortized Cost Basis at Period End% of Total Class of Financing Receivable
Single family$13,742 1.36 %
Home equity and other51 0.01 %
Interest Rate Reduction, Significant Payment Delay and Term Extension
Year Ended December 31, 2022
(in thousands)Amortized Cost Basis at Period End% of Total Class of Financing Receivable
Single family$6,500 0.64 %
Financing Receivable, Loan Modifications, Financial Effect
The following table describes the financial effect of the MFDBs:

Interest Rate Reduction
Year Ended December 31, 2022
Commercial business
Reduced weighted-average contractual interest rate from 5.72% to 4.00%.
Single family
Reduced weighted-average contractual interest rate from 4.25% to 3.31%.
Significant Payment Delay
Year Ended December 31, 2022
Single family
Provided payment deferrals to borrowers. A weighted average 0.22% of loan balances were capitalized and added to the remaining term of the loan.
Home equity and other
Provided payment deferrals to borrowers. A weighted average 3.47% of loan balances were capitalized and added to the remaining term of the loan.
Term Extension
Year Ended December 31, 2022
Commercial business
Added a weighted average 0.8 years to the life of loans, which reduced the monthly payment amounts to the borrowers.
Single family
Added a weighted average 4.4 years to the life of loans, which reduced the monthly payment amounts to the borrowers.
Home equity and other
Added a weighted average 16.1 years to the life of loans, which reduced the monthly payment amounts to the borrowers.
Financing Receivable, Loan Modifications, Subsequent Default, By Payment Status
The following table depicts the payment status of loans that were modified to borrowers experiencing financial difficulties on or after January 1, 2022, the date we adopted ASU 2022-02, through September 30, 2022:

Payment Status (Amortized Cost Basis) at December 31, 2022
(in thousands)Current30-89 Days Past Due90+ Days Past Due
Commercial business$2,021 $— $— 
Single family19,908 1,831 198 
Home equity and other120 — — 
Total$22,049 $1,831 $198 
The following tables provide the amortized cost basis as of December 31, 2022 of MFDBs, on or after January 1, 2022, the date we adopted ASU 2022-02 through September 30, 2022 and subsequently had a payment default.

Amortized Cost Basis of Modified Loans That Subsequently Defaulted Year Ended December 31, 2022
(in thousands)Significant Payment DelayTerm ExtensionInterest Rate Reduction and Term ExtensionSignificant Payment Delay and Term ExtensionInterest Rate Reduction, Significant Payment Delay and Term Extension
Single family$340 $— $— $1,198 $764