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LOANS AND CREDIT QUALITY (Tables)
3 Months Ended
Mar. 31, 2023
Receivables [Abstract]  
Loans Held for Investment LHFI consists of the following:
(in thousands)At March 31, 2023At December 31, 2022
CRE
Non-owner occupied CRE$652,284 $658,085 
Multifamily3,975,654 3,975,754 
Construction/land development607,559 627,663 
Total5,235,497 5,261,502 
Commercial and industrial loans
Owner occupied CRE438,147 443,363 
Commercial business392,837 359,747 
Total
830,984 803,110 
Consumer loans
Single family1,057,579 1,009,001 
Home equity and other362,322 352,707 
Total (1)
1,419,901 1,361,708 
Total LHFI 7,486,382 7,426,320 
Allowance for credit losses ("ACL")(41,500)(41,500)
Total LHFI less ACL
$7,444,882 $7,384,820 
(1)    Includes $5.2 million and $5.9 million at March 31, 2023 and December 31, 2022, 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 in fair value recognized in the consolidated income statements.
Activity in Allowance for Credit Losses
Activity in the ACL for LHFI and the allowance for unfunded commitments was as follows:
 Quarter Ended March 31,
(in thousands)20232022
Beginning balance
$41,500 $47,123 
Provision for credit losses589 (9,223)
Net (charge-offs) recoveries(589)44
Ending balance$41,500 $37,944 
Allowance for unfunded commitments:
Beginning balance$2,197 $2,404 
Provision for credit losses223 
Ending balance$2,201 $2,627 
Provision for credit losses:
Allowance for credit losses - loans$589 $(9,223)
Allowance for unfunded commitments223 
Total$593 $(9,000)
Activity in the ACL for LHFI by loan portfolio and loan sub-class was as follows:

Quarter Ended March 31, 2023
(in thousands)Beginning balanceCharge-offsRecoveriesProvision Ending balance
CRE
Non-owner occupied CRE$2,102 $— $— $506 $2,608 
Multifamily10,974 — — (1,187)9,787 
Construction/land development
Multifamily construction998 — — 347 1,345 
CRE construction196 — — 204 
Single family construction12,418 — — 107 12,525 
Single family construction to permanent1,171 — — 40 1,211 
Total27,859 — — (179)27,680 
Commercial and industrial loans
Owner occupied CRE1,030 — — (120)910 
Commercial business3,247 (633)24 778 3,416 
     Total 4,277 (633)24 658 4,326 
Consumer loans
Single family5,610 — 15 179 5,804 
Home equity and other3,754 (50)55 (69)3,690 
Total9,364 (50)70 110 9,494 
Total ACL$41,500 $(683)$94 $589 $41,500 

Quarter Ended March 31, 2022
(in thousands)Beginning balanceCharge-offsRecoveriesProvision
Ending balance
CRE
Non-owner occupied CRE$7,509 $— $— $(5,215)$2,294 
Multifamily5,854 — — 2,573 8,427 
Construction/land development
Multifamily construction507 — — (51)456 
CRE construction150 — — 34 184 
Single family construction6,411 — — 1,324 7,735 
Single family construction to permanent1,055 — — (65)990 
Total21,486 — — (1,400)20,086 
Commercial and industrial loans
Owner occupied CRE5,006 — — (1,470)3,536 
Commercial business12,273 (11)24 (5,376)6,910 
     Total 17,279 (11)24 (6,846)10,446 
Consumer loans
Single family4,394 — (636)3,762 
Home equity and other3,964 (33)60 (341)3,650 
Total8,358 (33)64 (977)7,412 
Total ACL$47,123 $(44)$88 $(9,223)$37,944 
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 March 31, 2023
(in thousands)202320222021202020192018 and priorRevolvingRevolving-termTotal
COMMERCIAL PORTFOLIO
Non-owner occupied CRE
Pass$1,542 $68,246 $68,280 $41,870 $138,583 $302,871 $1,122 $— $622,514 
Special Mention— — — — — 29,332 — — 29,332 
Substandard— — — — 438 — — — 438 
Total1,542 68,246 68,280 41,870 139,021 332,203 1,122 — 652,284 
Multifamily
Pass15,923 1,826,992 1,159,589 522,497 238,448 197,486 — — 3,960,935 
Special Mention— — — 4,892 2,366 7,461 — — 14,719 
Substandard— — — — — — — — — 
Total15,923 1,826,992 1,159,589 527,389 240,814 204,947 — — 3,975,654 
Multifamily construction
Pass(222)23,795 71,396 14,164 — — — — 109,133 
Special Mention— — — — — — — — — 
Substandard— — — — — — — — — 
Total(222)23,795 71,396 14,164 — — — — 109,133 
CRE construction
Pass— 1,713 14,416 3,958 — — — — 20,087 
Special Mention— — — — — — — — — 
Substandard— — — — — — — — — 
Total— 1,713 14,416 3,958 — — — — 20,087 
Single family construction
Pass22,174 140,812 30,374 10,748 — 74 117,718 — 321,900 
Special Mention— — — — — — — — — 
Substandard— — 5,732 — — — — — 5,732 
Total22,174 140,812 36,106 10,748 — 74 117,718 — 327,632 
Single family construction to permanent
Current
3,874 84,818 54,059 5,253 2,186 517 — — 150,707 
Past due:
30-59 days
— — — — — — — — — 
60-89 days
— — — — — — — — — 
90+ days
— — — — — — — — — 
Total3,874 84,818 54,059 5,253 2,186 517 — — 150,707 
Owner occupied CRE
Pass3,908 69,709 51,178 42,620 70,651 176,851 1,085 416,004 
Special Mention— 1,506 737 — — 12,915 — — 15,158 
Substandard— — — — — 6,985 — — 6,985 
Total3,908 71,215 51,915 42,620 70,651 196,751 1,085 438,147 
Commercial business
Pass15,698 53,476 38,338 45,115 17,838 30,257 152,482 1,743 354,947 
Special Mention— 11,612 3,650 — 3,765 3,093 1,935 190 24,245 
Substandard— — 996 2,551 3,955 4,589 1,462 92 13,645 
Total15,698 65,088 42,984 47,666 25,558 37,939 155,879 2,025 392,837 
Total commercial portfolio
$62,897 $2,282,679 $1,498,745 $693,668 $478,230 $772,431 $274,721 $3,110 $6,066,481 
The following table presents a vintage analysis of the consumer portfolio segment by loan sub-class and delinquency status:
At March 31, 2023
(in thousands)202320222021202020192018 and priorRevolvingRevolving-termTotal
CONSUMER PORTFOLIO
Single family
Current
$7,309 $283,042 $283,329 $156,430 $48,645 $272,582 $— $— $1,051,337 
Past due:
30-59 days
— — — — 545 2,020 — — 2,565 
60-89 days
— — — — — 539 — — 539 
90+ days
— — — — 290 2,848 — — 3,138 
Total7,309 283,042 283,329 156,430 49,480 277,989 — — 1,057,579 
Home equity and other
Current
542 3,693 601 197 114 1,788 346,770 7,379 361,084 
Past due:
30-59 days
— 10 — — — — 620 58 688 
60-89 days
— 28 — — — 53 96 
90+ days
— 32 — — — 25 387 10 454 
Total542 3,763 608 197 114 1,813 347,830 7,455 362,322 
Total consumer portfolio (1)
$7,851 $286,805 $283,937 $156,627 $49,594 $279,802 $347,830 $7,455 $1,419,901 
Total LHFI$70,748 $2,569,484 $1,782,682 $850,295 $527,824 $1,052,233 $622,551 $10,565 $7,486,382 

(1)    Includes $5.2 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 in fair value 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, 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— — — — — — — — — 
Total68,301 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— — — — — — — — — 
Total341 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 
Total149,133 57,718 24,807 519 — 74 123,303 — 355,554 
Single family construction to permanent
Current66,034 76,814 11,128 3,268 794 — — — 158,038 
Past due:
30-59 days — — — — — — — — — 
60-89 days — — — — — — — — — 
90+ days — — — — — — — — — 
Total66,034 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 
Total70,192 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 
Total65,566 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 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 (1)
$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 in fair value recognized in the consolidated income statements.

The following table presents a vintage analysis of the commercial and consumer portfolio segment by loan sub-class and gross charge-offs:
At March 31, 2023
(in thousands)202320222021202020192018 and priorRevolvingRevolving-termTotal
COMMERCIAL PORTFOLIO
Commercial business
Gross charge-offs$— $— $(174)$— $(459)$— $— $— $(633)
CONSUMER PORTFOLIO
Home equity and other
Gross charge-offs— (6)(13)— — — (31)— (50)
Total LHFI$— $(6)$(187)$— $(459)$— $(31)$— $(683)
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 March 31, 2023
(in thousands)Land1-4 FamilyNon-residential real estateOther non-real estateTotal
Commercial and industrial loans
Owner occupied CRE$972 $— $2,696 $— $3,668 
Commercial business
3,178 562 777 4,518 
   Total
973 3,178 3,258 777 8,186 
Consumer loans
Single family
— 847 — — 847 
   Total
— 847 — — 847 
  Total collateral-dependent loans$973 $4,025 $3,258 $777 $9,033 
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 loans1,173 3,186 1,972 — 6,331 
Schedule of Loans on Nonaccrual with no Related Allowance for Credit Loss
The following table presents nonaccrual status for loans:
At March 31, 2023At December 31, 2022
(in thousands)Nonaccrual with no related ACLTotal NonaccrualNonaccrual with no related ACLTotal Nonaccrual
Commercial and industrial loans
Owner occupied CRE$3,668 $3,668 $2,521 $2,521 
        Commercial business4,518 4,518 785 4,269 
Total
8,186 8,186 3,306 6,790 
Consumer loans
Single family
1,071 3,999 332 2,584 
Home equity and other862 681 
Total1,074 4,861 335 3,265 
Total nonaccrual loans$9,260 $13,047 $3,641 $10,055 
Schedule of Loans Past Due
The following tables present an aging analysis of past due loans by loan portfolio segment and loan sub-class:
At March 31, 2023
Past Due and Still Accruing
(in thousands)30-59 days60-89 days90 days or
more
Nonaccrual
Total past
due and nonaccrual (1)
CurrentTotal
loans
CRE
Non-owner occupied CRE$— $— $— $— $— $652,284 $652,284 
Multifamily— — — — — 3,975,654 3,975,654 
Construction/land development
Multifamily construction— — — — — 109,133 109,133 
CRE construction— — — — — 20,087 20,087 
Single family construction— — 5,732 — 5,732 321,900 327,632 
Single family construction to permanent— — — — — 150,707 150,707 
Total
— — 5,732 — 5,732 5,229,765 5,235,497 
Commercial and industrial loans
Owner occupied CRE— — — 3,668 3,668 434,479 438,147 
Commercial business50 — — 4,518 4,568 388,269 392,837 
Total
50 — — 8,186 8,236 822,748 830,984 
Consumer loans
Single family
4,105 1,856 5,527 (2)3,999 15,487 1,042,092 1,057,579 
Home equity and other689 43 — 862 1,594 360,728 362,322 
Total
4,794 1,899 5,527 4,861 17,081 1,402,820 1,419,901 (3)
Total loans$4,844 $1,899 $11,259 $13,047 $31,049 $7,455,333 $7,486,382 
%0.06 %0.03 %0.15 %0.17 %0.41 %99.59 %100.00 %
At December 31, 2022
Past Due and Still Accruing
(in thousands)30-59 days60-89 days90 days or
more
Nonaccrual
Total past
due and nonaccrual (1)
CurrentTotal
loans
CRE
Non-owner occupied CRE$— $— $— $— $— $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 
Home equity and other267 296 — 681 1,244 351,463 352,707 
Total
4,823 2,020 4,372 3,265 14,480 1,347,228 1,361,708 (3)
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 %
(1)     Includes loans whose repayments are insured by the FHA or guaranteed by the VA or Small Business Administration "SBA" of $12.3 million and $10.6 million at March 31, 2023 and December 31, 2022, 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 $5.2 million and $5.9 million of loans at March 31, 2023 and December 31, 2022, respectively, where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes in fair value recognized in our consolidated income statements.
Schedule of Loan Modifications The following tables provide information related to loans modified during the quarters ended March 31, 2023 and 2022 to borrowers experiencing financial difficulty, disaggregated by class of financing receivable and type of concession granted:
Significant Payment Delay
Quarter Ended March 31, 2023Quarter Ended March 31, 2022
(in thousands, except percentage)Amortized Cost Basis at Period End% of Total Class of Financing ReceivableAmortized Cost Basis at Period End% of Total Class of Financing Receivable
Single family$— — %$153 0.02 %
Term Extension
Quarter Ended March 31, 2023Quarter Ended March 31, 2022
(in thousands, except percentage)Amortized Cost Basis at Period End% of Total Class of Financing ReceivableAmortized Cost Basis at Period End% of Total Class of Financing Receivable
Single family$— — %$37 — %
Interest Rate Reduction and Term Extension
Quarter Ended March 31, 2023Quarter Ended March 31, 2022
(in thousands, except percentage)Amortized Cost Basis at Period End% of Total Class of Financing ReceivableAmortized Cost Basis at Period End% of Total Class of Financing Receivable
Single family$— — %$1,110 0.15 %

Significant Payment Delay and Term Extension
Quarter Ended March 31, 2023Quarter Ended March 31, 2022
(in thousands, except percentage)Amortized Cost Basis at Period End% of Total Class of Financing ReceivableAmortized Cost Basis at Period End% of Total Class of Financing Receivable
Single family$179 0.02 %$6,397 0.84 %
Home equity and other— — %52 0.02 %

Interest Rate Reduction, Significant Payment Delay and Term Extension
Quarter Ended March 31, 2023Quarter Ended March 31, 2022
(in thousands, except percentage)Amortized Cost Basis at Period End% of Total Class of Financing ReceivableAmortized Cost Basis at Period End% of Total Class of Financing Receivable
Single family$— — %$5,762 0.76 %
Schedule of Financial Effects of Loan Modifications
The following table describes the financial effect of the modifications made to borrowers experiencing financial difficulty:

Interest Rate Reduction
Quarter Ended March 31, 2023Quarter Ended March 31, 2022
Single family
Reduced weighted-average contractual interest rate from 4.28% to 3.25%.
Significant Payment Delay
Quarter Ended March 31, 2023Quarter Ended March 31, 2022
Single Family
Provided payment deferrals to borrowers. A weighted average 2.6% of loan balances were capitalized and added to the remaining term of the loan.
Provided payment deferrals to borrowers. A weighted average 0.3% 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 6.3% of loan balances were capitalized and added to the remaining term of the loan.
Term Extension
Quarter Ended March 31, 2023Quarter Ended March 31, 2022
Single family
Added a weighted average 14.2 years to the life of loans, which reduced the monthly payment amounts to the borrowers.
Added a weighted average 3.2 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.
Schedule of Loan Modifications, Payment Status
The following table depicts the payment status of loans that were MFDBs on or after January 1, 2022 through December 31, 2022:

Payment Status (Amortized Cost Basis) at March 31, 2023
(in thousands)Current30-89 Days Past Due90+ Days Past Due
Commercial business$1,355 $— $— 
Single family19,006 1,746 1,627 
Home equity and other119 — — 
Total$20,480 $1,746 $1,627 
Schedule of Loan Modifications with Subsequent Default
The following tables provide the amortized cost basis as of March 31, 2023 of MFDBs on or after January 1, 2022 through December 31, 2022 and subsequently had a payment default:

Amortized Cost Basis of Modified Loans That Subsequently Defaulted Quarter Ended March 31, 2023
(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$— $— $— $2,030 $623