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LOANS AND ALLOWANCE FOR CREDIT LOSSES | 9 Months Ended
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Sep. 30, 2022
Receivables [Abstract] |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | LOANS AND ALLOWANCE FOR CREDIT LOSSES The following table presents the balances in our loan portfolio as of the dates indicated:
($ in thousands) |  |  |  |  |  | September 30, 2022 |  | December 31, 2021
Commercial: |  |  |  |  |  |  |  |
Commercial and industrial(1) |  |  |  |  |  | $ | 1,993,416 |  |  | $ | 2,668,984 |
Commercial real estate |  |  |  |  |  | 1,240,927 |  |  | 1,311,105 |
Multifamily |  |  |  |  |  | 1,698,455 |  |  | 1,361,054 |
SBA(2) |  |  |  |  |  | 85,674 |  |  | 205,548 |
Construction |  |  |  |  |  | 236,495 |  |  | 181,841 |
Consumer: |  |  |  |  |  |  |  |
Single family residential mortgage |  |  |  |  |  | 1,947,652 |  |  | 1,420,023 |
Other consumer |  |  |  |  |  | 86,701 |  |  | 102,925 |
Total loans |  |  |  |  |  | $ | 7,289,320 |  |  | $ | 7,251,480 |
Allowance for loan losses |  |  |  |  |  | (92,444) |  |  | (92,584) |
Loans receivable, net |  |  |  |  |  | $ | 7,196,876 |  |  | $ | 7,158,896 |
(1)Includes warehouse lending balances of $766.4 million and $1.60 billion at September 30, 2022 and December 31, 2021. (2)Includes 39 PPP loans totaling $20.0 million at September 30, 2022 and 397 PPP loans totaling $123.1 million at December 31, 2021. The following table presents the balances of total loans as of the dates indicated:
($ in thousands) |  | September 30, 2022 |  | December 31, 2021
Unpaid principal balance |  | $ | 7,282,235 |  |  | $ | 7,245,952 |
Unamortized net premiums |  | 18,592 |  |  | 18,005 |
Unamortized net deferred (fees) costs |  | (1,558) |  |  | 819 |
Unamortized SBA PPP fees |  | — |  |  | (831) |
Fair value adjustment(1) |  | (9,949) |  |  | (12,465) |
Total loans |  | $ | 7,289,320 |  |  | $ | 7,251,480 |
(1)At September 30, 2022, includes $8.5 million related to the PMB Acquisition, of which $4.4 million related to PCD loans. At December 31, 2021, includes $10.6 million related to the PMB Acquisition, of which $3.9 million related to PCD loans. Credit Quality Indicators We categorize loans into risk categories based on relevant information about the ability of borrowers to repay their debt such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. We perform a historical loss analysis that is combined with a comprehensive loan to value analysis to analyze the associated risks in the current loan portfolio. We analyze loans individually and grade each loan for credit risk. This analysis includes all loans delinquent over 60 days and non-homogeneous loans such as commercial and commercial real estate loans. We use the following definitions for credit risk ratings: Pass: Loans classified as pass are in compliance in all respects with the Bank’s credit policy and regulatory requirements, and do not exhibit any potential or defined weakness as defined under “Special Mention”, “Substandard” or “Doubtful.” Special Mention: Loans risk rated as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loans or of our credit position at some future date. Substandard: Loans risk rated as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or a weakness that jeopardizes the liquidation of the debt. They are characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected. Doubtful: Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The following table presents the risk categories for total loans by class of loans and origination year as of September 30, 2022:
|  | Term Loans Amortized Cost Basis by Origination Year |  |  |  |  |  |
($ in thousands) |  | 2022 |  | 2021 |  | 2020 |  | 2019 |  | 2018 |  | Prior |  | Revolving Loans Amortized Cost Basis |  | Revolving Loans Amortized Cost Basis Converted to Term |  | Total
September 30, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 213,799 |  |  | $ | 216,306 |  |  | $ | 66,038 |  |  | $ | 56,701 |  |  | $ | 79,436 |  |  | $ | 177,540 |  |  | $ | 1,083,367 |  |  | $ | 7,499 |  |  | $ | 1,900,686 |
Special mention |  | — |  |  | 4,551 |  |  | 28 |  |  | 513 |  |  | 1,104 |  |  | 13,533 |  |  | 13,457 |  |  | 527 |  |  | 33,713 |
Substandard |  | 3,195 |  |  | 951 |  |  | 4,190 |  |  | 11,364 |  |  | 7,565 |  |  | 3,131 |  |  | 27,486 |  |  | 1,135 |  |  | 59,017 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Commercial and industrial |  | 216,994 |  |  | 221,808 |  |  | 70,256 |  |  | 68,578 |  |  | 88,105 |  |  | 194,204 |  |  | 1,124,310 |  |  | 9,161 |  |  | 1,993,416 |
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 286,672 |  |  | 372,760 |  |  | 60,834 |  |  | 113,342 |  |  | 156,635 |  |  | 233,793 |  |  | 1,162 |  |  | 63 |  |  | 1,225,261 |
Special mention |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,757 |  |  | — |  |  | — |  |  | 1,757 |
Substandard |  | — |  |  | — |  |  | — |  |  | — |  |  | 4,131 |  |  | 8,868 |  |  | 910 |  |  | — |  |  | 13,909 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Commercial real estate |  | 286,672 |  |  | 372,760 |  |  | 60,834 |  |  | 113,342 |  |  | 160,766 |  |  | 244,418 |  |  | 2,072 |  |  | 63 |  |  | 1,240,927 |
Multifamily |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 601,460 |  |  | 396,785 |  |  | 155,134 |  |  | 253,799 |  |  | 110,372 |  |  | 139,996 |  |  | 3 |  |  | 9,352 |  |  | 1,666,901 |
Special mention |  | — |  |  | — |  |  | 3,000 |  |  | — |  |  | 11,118 |  |  | — |  |  | — |  |  | — |  |  | 14,118 |
Substandard |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 17,436 |  |  | — |  |  | — |  |  | 17,436 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Multifamily |  | 601,460 |  |  | 396,785 |  |  | 158,134 |  |  | 253,799 |  |  | 121,490 |  |  | 157,432 |  |  | 3 |  |  | 9,352 |  |  | 1,698,455 |
SBA |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 10,479 |  |  | 25,948 |  |  | 7,870 |  |  | 2,419 |  |  | 1,240 |  |  | 20,750 |  |  | 604 |  |  | 137 |  |  | 69,447 |
Special mention |  | — |  |  | 1 |  |  | — |  |  | 3,878 |  |  | 210 |  |  | 558 |  |  | — |  |  | 1 |  |  | 4,648 |
Substandard |  | — |  |  | (1) |  |  | 329 |  |  | 198 |  |  | 385 |  |  | 9,210 |  |  | 665 |  |  | 793 |  |  | 11,579 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
SBA |  | 10,479 |  |  | 25,948 |  |  | 8,199 |  |  | 6,495 |  |  | 1,835 |  |  | 30,518 |  |  | 1,269 |  |  | 931 |  |  | 85,674 |
Construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 71,529 |  |  | 89,985 |  |  | 28,997 |  |  | 6,937 |  |  | 13,609 |  |  | 25,438 |  |  | — |  |  | — |  |  | 236,495 |
Special mention |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Substandard |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Construction |  | 71,529 |  |  | 89,985 |  |  | 28,997 |  |  | 6,937 |  |  | 13,609 |  |  | 25,438 |  |  | — |  |  | — |  |  | 236,495 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Single family residential mortgage |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 637,863 |  |  | 800,100 |  |  | 74,354 |  |  | 48,736 |  |  | 100,450 |  |  | 264,151 |  |  | 5,895 |  |  | — |  |  | 1,931,549 |
Special mention |  | 626 |  |  | 221 |  |  | 2,175 |  |  | 1,541 |  |  | 897 |  |  | 1,728 |  |  | — |  |  | 223 |  |  | 7,411 |
Substandard |  | — |  |  | — |  |  | — |  |  | — |  |  | 5,554 |  |  | 3,138 |  |  | — |  |  | — |  |  | 8,692 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Single family residential mortgage |  | 638,489 |  |  | 800,321 |  |  | 76,529 |  |  | 50,277 |  |  | 106,901 |  |  | 269,017 |  |  | 5,895 |  |  | 223 |  |  | 1,947,652 |
Other consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 17,692 |  |  | 17,777 |  |  | 9,578 |  |  | 5,969 |  |  | 3,646 |  |  | 17,770 |  |  | 10,958 |  |  | 2,925 |  |  | 86,315 |
Special mention |  | — |  |  | — |  |  | — |  |  | 3 |  |  | — |  |  | 21 |  |  | 62 |  |  | 56 |  |  | 142 |
Substandard |  | — |  |  | — |  |  | 59 |  |  | — |  |  | 70 |  |  | 34 |  |  | 81 |  |  | — |  |  | 244 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Other consumer |  | 17,692 |  |  | 17,777 |  |  | 9,637 |  |  | 5,972 |  |  | 3,716 |  |  | 17,825 |  |  | 11,101 |  |  | 2,981 |  |  | 86,701 |
Total loans |  | $ | 1,843,315 |  |  | $ | 1,925,384 |  |  | $ | 412,586 |  |  | $ | 505,400 |  |  | $ | 496,422 |  |  | $ | 938,852 |  |  | $ | 1,144,650 |  |  | $ | 22,711 |  |  | $ | 7,289,320 |
Total loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 1,839,494 |  |  | $ | 1,919,661 |  |  | $ | 402,805 |  |  | $ | 487,903 |  |  | $ | 465,388 |  |  | $ | 879,438 |  |  | $ | 1,101,989 |  |  | $ | 19,976 |  |  | $ | 7,116,654 |
Special mention |  | 626 |  |  | 4,773 |  |  | 5,203 |  |  | 5,935 |  |  | 13,329 |  |  | 17,597 |  |  | 13,519 |  |  | 807 |  |  | 61,789 |
Substandard |  | 3,195 |  |  | 950 |  |  | 4,578 |  |  | 11,562 |  |  | 17,705 |  |  | 41,817 |  |  | 29,142 |  |  | 1,928 |  |  | 110,877 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total loans |  | $ | 1,843,315 |  |  | $ | 1,925,384 |  |  | $ | 412,586 |  |  | $ | 505,400 |  |  | $ | 496,422 |  |  | $ | 938,852 |  |  | $ | 1,144,650 |  |  | $ | 22,711 |  |  | $ | 7,289,320 |
The following table presents the risk categories for total loans by class of loans and origination year as of December 31, 2021:
|  | Term Loans Amortized Cost Basis by Origination Year |  |  |  |  |  |
($ in thousands) |  | 2021 |  | 2020 |  | 2019 |  | 2018 |  | 2017 |  | Prior |  | Revolving Loans Amortized Cost Basis |  | Revolving Loans Amortized Cost Basis Converted to Term |  | Total
December 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 254,218 |  |  | $ | 81,177 |  |  | $ | 71,950 |  |  | $ | 78,461 |  |  | $ | 56,439 |  |  | $ | 110,490 |  |  | $ | 1,888,126 |  |  | $ | 9,679 |  |  | $ | 2,550,540 |
Special mention |  | 1,206 |  |  | 5,971 |  |  | 13,721 |  |  | 835 |  |  | 7,272 |  |  | 9,846 |  |  | 20,460 |  |  | 6,348 |  |  | 65,659 |
Substandard |  | 2 |  |  | 241 |  |  | 17,853 |  |  | 11,378 |  |  | 3,374 |  |  | 117 |  |  | 17,429 |  |  | 2,391 |  |  | 52,785 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Commercial and industrial |  | 255,426 |  |  | 87,389 |  |  | 103,524 |  |  | 90,674 |  |  | 67,085 |  |  | 120,453 |  |  | 1,926,015 |  |  | 18,418 |  |  | 2,668,984 |
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 465,524 |  |  | 82,759 |  |  | 140,108 |  |  | 192,263 |  |  | 85,755 |  |  | 317,941 |  |  | 8,416 |  |  | 71 |  |  | 1,292,837 |
Special mention |  | — |  |  | — |  |  | — |  |  | 1,925 |  |  | — |  |  | 2,920 |  |  | — |  |  | — |  |  | 4,845 |
Substandard |  | — |  |  | — |  |  | 506 |  |  | — |  |  | — |  |  | 9,084 |  |  | 3,833 |  |  | — |  |  | 13,423 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Commercial real estate |  | 465,524 |  |  | 82,759 |  |  | 140,614 |  |  | 194,188 |  |  | 85,755 |  |  | 329,945 |  |  | 12,249 |  |  | 71 |  |  | 1,311,105 |
Multifamily |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 410,958 |  |  | 208,396 |  |  | 315,119 |  |  | 157,640 |  |  | 61,457 |  |  | 158,464 |  |  | 4 |  |  | — |  |  | 1,312,038 |
Special mention |  | — |  |  | 1,988 |  |  | — |  |  | 11,261 |  |  | — |  |  | 33,065 |  |  | — |  |  | — |  |  | 46,314 |
Substandard |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 2,702 |  |  | — |  |  | — |  |  | 2,702 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Multifamily |  | 410,958 |  |  | 210,384 |  |  | 315,119 |  |  | 168,901 |  |  | 61,457 |  |  | 194,231 |  |  | 4 |  |  | — |  |  | 1,361,054 |
SBA |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 106,749 |  |  | 23,972 |  |  | 8,049 |  |  | 1,957 |  |  | 10,836 |  |  | 28,495 |  |  | 928 |  |  | 143 |  |  | 181,129 |
Special mention |  | — |  |  | 1,586 |  |  | 3,618 |  |  | 236 |  |  | — |  |  | 596 |  |  | — |  |  | 4 |  |  | 6,040 |
Substandard |  | — |  |  | 5,888 |  |  | — |  |  | 390 |  |  | 3,358 |  |  | 7,245 |  |  | 599 |  |  | 899 |  |  | 18,379 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
SBA |  | 106,749 |  |  | 31,446 |  |  | 11,667 |  |  | 2,583 |  |  | 14,194 |  |  | 36,336 |  |  | 1,527 |  |  | 1,046 |  |  | 205,548 |
Construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 67,074 |  |  | 32,995 |  |  | 29,038 |  |  | 17,139 |  |  | 25,485 |  |  | — |  |  | — |  |  | — |  |  | 171,731 |
Special mention |  | — |  |  | — |  |  | — |  |  | 1,607 |  |  | — |  |  | 8,503 |  |  | — |  |  | — |  |  | 10,110 |
Substandard |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Construction |  | 67,074 |  |  | 32,995 |  |  | 29,038 |  |  | 18,746 |  |  | 25,485 |  |  | 8,503 |  |  | — |  |  | — |  |  | 181,841 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Single family residential mortgage |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 713,844 |  |  | 96,339 |  |  | 67,075 |  |  | 140,329 |  |  | 88,123 |  |  | 277,247 |  |  | 12,828 |  |  | — |  |  | 1,395,785 |
Special mention |  | — |  |  | 1,644 |  |  | 339 |  |  | 910 |  |  | 692 |  |  | 6,838 |  |  | — |  |  | — |  |  | 10,423 |
Substandard |  | — |  |  | — |  |  | — |  |  | 11,005 |  |  | 975 |  |  | 1,601 |  |  | — |  |  | 234 |  |  | 13,815 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Single family residential mortgage |  | 713,844 |  |  | 97,983 |  |  | 67,414 |  |  | 152,244 |  |  | 89,790 |  |  | 285,686 |  |  | 12,828 |  |  | 234 |  |  | 1,420,023 |
Other consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 26,179 |  |  | 13,556 |  |  | 8,891 |  |  | 5,265 |  |  | 9,038 |  |  | 15,951 |  |  | 21,327 |  |  | 2,331 |  |  | 102,538 |
Special mention |  | — |  |  | — |  |  | 4 |  |  | — |  |  | — |  |  | 25 |  |  | 63 |  |  | — |  |  | 92 |
Substandard |  | — |  |  | 61 |  |  | 14 |  |  | 148 |  |  | 46 |  |  | 26 |  |  | — |  |  | — |  |  | 295 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Other consumer |  | 26,179 |  |  | 13,617 |  |  | 8,909 |  |  | 5,413 |  |  | 9,084 |  |  | 16,002 |  |  | 21,390 |  |  | 2,331 |  |  | 102,925 |
Total loans |  | $ | 2,045,754 |  |  | $ | 556,573 |  |  | $ | 676,285 |  |  | $ | 632,749 |  |  | $ | 352,850 |  |  | $ | 991,156 |  |  | $ | 1,974,013 |  |  | $ | 22,100 |  |  | $ | 7,251,480 |
Total loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 2,044,546 |  |  | $ | 539,194 |  |  | $ | 640,230 |  |  | $ | 593,054 |  |  | $ | 337,133 |  |  | $ | 908,588 |  |  | $ | 1,931,629 |  |  | $ | 12,224 |  |  | $ | 7,006,598 |
Special mention |  | 1,206 |  |  | 11,189 |  |  | 17,682 |  |  | 16,774 |  |  | 7,964 |  |  | 61,793 |  |  | 20,523 |  |  | 6,352 |  |  | 143,483 |
Substandard |  | 2 |  |  | 6,190 |  |  | 18,373 |  |  | 22,921 |  |  | 7,753 |  |  | 20,775 |  |  | 21,861 |  |  | 3,524 |  |  | 101,399 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total loans |  | $ | 2,045,754 |  |  | $ | 556,573 |  |  | $ | 676,285 |  |  | $ | 632,749 |  |  | $ | 352,850 |  |  | $ | 991,156 |  |  | $ | 1,974,013 |  |  | $ | 22,100 |  |  | $ | 7,251,480 |
Past Due Loans The following table presents the aging of the recorded investment in past due loans, excluding accrued interest receivable (which is not considered to be material), by class of loans as of the dates indicated:
($ in thousands) |  | 30 - 59 Days Past Due |  | 60 - 89 Days Past Due |  | Greater than 89 Days Past due |  | Total Past Due |  | Current |  | Total
September 30, 2022 |  |  |  |  |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | 2,269 |  |  | 5,670 |  |  | 577 |  |  | 8,516 |  |  | 1,984,900 |  |  | 1,993,416 |
Commercial real estate |  | — |  |  | — |  |  | 910 |  |  | 910 |  |  | 1,240,017 |  |  | 1,240,927 |
Multifamily |  | 63 |  |  | — |  |  | — |  |  | 63 |  |  | 1,698,392 |  |  | 1,698,455 |
SBA |  | 1,205 |  |  | 128 |  |  | 10,168 |  |  | 11,501 |  |  | 74,173 |  |  | 85,674 |
Construction |  | — |  |  | — |  |  | — |  |  | — |  |  | 236,495 |  |  | 236,495 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |
Single family residential mortgage |  | 26,593 |  |  | 2,707 |  |  | 7,107 |  |  | 36,407 |  |  | 1,911,245 |  |  | 1,947,652 |
Other consumer |  | 59 |  |  | — |  |  | 81 |  |  | 140 |  |  | 86,561 |  |  | 86,701 |
Total |  | $ | 30,189 |  |  | $ | 8,505 |  |  | $ | 18,843 |  |  | $ | 57,537 |  |  | $ | 7,231,783 |  |  | $ | 7,289,320 |
December 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | 9,342 |  |  | 1,351 |  |  | 9,503 |  |  | 20,196 |  |  | 2,648,788 |  |  | 2,668,984 |
Commercial real estate |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,311,105 |  |  | 1,311,105 |
Multifamily |  | 786 |  |  | — |  |  | — |  |  | 786 |  |  | 1,360,268 |  |  | 1,361,054 |
SBA |  | 987 |  |  | 2,360 |  |  | 15,941 |  |  | 19,288 |  |  | 186,260 |  |  | 205,548 |
Construction |  | — |  |  | — |  |  | — |  |  | — |  |  | 181,841 |  |  | 181,841 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |
Single family residential mortgage |  | 24,867 |  |  | — |  |  | 7,076 |  |  | 31,943 |  |  | 1,388,080 |  |  | 1,420,023 |
Other consumer |  | 449 |  |  | — |  |  | 89 |  |  | 538 |  |  | 102,387 |  |  | 102,925 |
Total |  | $ | 36,431 |  |  | $ | 3,711 |  |  | $ | 32,609 |  |  | $ | 72,751 |  |  | $ | 7,178,729 |  |  | $ | 7,251,480 |
Nonaccrual Loans The following table presents nonaccrual loans as of the dates indicated:
|  |  |  |  | September 30, 2022 |  |  |  |  |  | December 31, 2021
($ in thousands) |  |  |  |  | Total Nonaccrual Loans |  | Nonaccrual Loans with no ACL |  |  |  |  |  | Total Nonaccrual Loans |  | Nonaccrual Loans with no ACL
Nonaccrual loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  |  |  | $ | 23,155 |  |  | $ | 6,945 |  |  |  |  |  |  | $ | 28,594 |  |  | $ | 9,137 |
Commercial real estate |  |  |  |  | 910 |  |  | 910 |  |  |  |  |  |  | — |  |  | — |
SBA |  |  |  |  | 10,414 |  |  | 5,158 |  |  |  |  |  |  | 16,653 |  |  | 11,443 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Single family residential mortgage |  |  |  |  | 8,010 |  |  | 4,081 |  |  |  |  |  |  | 7,076 |  |  | 7,076 |
Other consumer |  |  |  |  | 185 |  |  | 185 |  |  |  |  |  |  | 235 |  |  | 235 |
Total nonaccrual loans |  |  |  |  | $ | 42,674 |  |  | $ | 17,279 |  |  |  |  |  |  | $ | 52,558 |  |  | $ | 27,891 |
At September 30, 2022 and December 31, 2021, there were no loans that were past due 90 days or more and still accruing. Other Real Estate Owned, Net and Loans in Process of Foreclosure At September 30, 2022 and December 31, 2021, there was no other real estate owned. At September 30, 2022, there were four consumer mortgage loans totaling $4.9 million secured by residential real estate properties for which formal foreclosure proceedings were in process according to local requirements of the applicable jurisdiction. There were no consumer mortgage loans secured by residential real estate properties in foreclosure at December 31, 2021. Allowance for Credit Losses The ACL methodology uses a nationally recognized, third-party model that includes many assumptions based on historical and peer loss data, current loan portfolio risk profile including risk ratings, and economic forecasts including macroeconomic variables released by the model provider during September 2022. The published forecasts consider the FRB's monetary policy, labor market constraints, rising inflation, higher oil prices and the military conflict between Russia and Ukraine, among other factors. The ACL also incorporates qualitative factors to account for certain loan portfolio characteristics that are not taken into consideration by the third-party model including underlying strengths and weaknesses in various segments of the loan portfolio. As is the case with all estimates, the ACL is expected to be impacted in future periods by economic volatility, changing economic forecasts, underlying model assumptions, and asset quality metrics, all of which may be better than or worse than current estimates. The ACL process involves subjective and complex judgments as well as adjustments for numerous factors including those described in the federal banking agencies' joint interagency policy statement on ALL, which include underwriting experience and collateral value changes, among others. The reserve for unfunded loan commitments is established to cover the current expected credit losses for the estimated level of funding of these loan commitments, except for unconditionally cancellable commitments for which no reserve is required under ASC 326. At September 30, 2022 and December 31, 2021, the reserve for unfunded loan commitments was $6.4 million and $5.6 million, respectively, and was included in accrued expenses and other liabilities on the consolidated statements of financial condition. The following table presents a summary of activity in the ACL for the periods indicated:
|  | Three Months Ended September 30, |  |
($ in thousands) |  | 2022 |  | 2021 |  |  |  |
|  | Allowance for Loan Losses |  | Reserve for Unfunded Loan Commitments |  | Allowance for Credit Losses |  | Allowance for Loan Losses |  | Reserve for Unfunded Loan Commitments |  | Allowance for Credit Losses |  |  |  |
Balance at beginning of period |  | $ | 93,793 |  |  | $ | 5,905 |  |  | $ | 99,698 |  |  | $ | 75,885 |  |  | $ | 3,814 |  |  | $ | 79,699 |  |  |  |  |
Charge-offs |  | (912) |  |  | — |  |  | (912) |  |  | (327) |  |  | — |  |  | (327) |  |  |  |  |
Recoveries |  | 63 |  |  | — |  |  | 63 |  |  | 532 |  |  | — |  |  | 532 |  |  |  |  |
Net (charge-offs) recoveries |  | (849) |  |  | — |  |  | (849) |  |  | 205 |  |  | — |  |  | 205 |  |  |  |  |
(Reversal of) provision for credit losses |  | (500) |  |  | 500 |  |  | — |  |  | (2,566) |  |  | 1,419 |  |  | (1,147) |  |  |  |  |
Balance at end of period |  | $ | 92,444 |  |  | $ | 6,405 |  |  | $ | 98,849 |  |  | $ | 73,524 |  |  | $ | 5,233 |  |  | $ | 78,757 |  |  |  |  |
|  | Nine Months Ended September 30, |  |
($ in thousands) |  | 2022 |  | 2021 |  |  |  |
|  | Allowance for Loan Losses |  | Reserve for Unfunded Loan Commitments |  | Allowance for Credit Losses |  | Allowance for Loan Losses |  | Reserve for Unfunded Loan Commitments |  | Allowance for Credit Losses |  |  |  |
Balance at beginning of period |  | $ | 92,584 |  |  | $ | 5,605 |  |  | $ | 98,189 |  |  | $ | 81,030 |  |  | $ | 3,183 |  |  | $ | 84,213 |  |  |  |  |
Charge-offs |  | (1,637) |  |  | — |  |  | (1,637) |  |  | (1,778) |  |  | — |  |  | (1,778) |  |  |  |  |
Recoveries |  | 33,839 |  |  | — |  |  | 33,839 |  |  | 730 |  |  | — |  |  | 730 |  |  |  |  |
Net charge-offs |  | 32,202 |  |  | — |  |  | 32,202 |  |  | (1,048) |  |  | — |  |  | (1,048) |  |  |  |  |
(Reversal of) provision for credit losses |  | (32,342) |  |  | 800 |  |  | (31,542) |  |  | (6,458) |  |  | 2,050 |  |  | (4,408) |  |  |  |  |
Balance at end of period |  | $ | 92,444 |  |  | $ | 6,405 |  |  | $ | 98,849 |  |  | $ | 73,524 |  |  | $ | 5,233 |  |  | $ | 78,757 |  |  |  |  |
During the nine months ended September 30, 2022, total recoveries included $31.3 million related to a recovery from the settlement of a loan previously charged-off in 2019. This recovery resulted in a reversal of provision for credit losses during the same period. Accrued interest receivable on loans receivable, net totaled $26.7 million and $25.8 million at September 30, 2022 and December 31, 2021, and is included within other assets in the accompanying consolidated statements of financial condition. Accrued interest receivable is excluded from the allowance of credit losses. The following table presents the activity and balance in the ALL as of or for the three and nine months ended September 30, 2022:
($ in thousands) |  | Commercial and Industrial |  | Commercial Real Estate |  | Multifamily |  | SBA |  | Construction |  |  |  | Single Family Residential Mortgage |  | Other Consumer |  |  |  | Total
ALL: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Three Months Ended September 30, 2022: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at June 30, 2022 |  | $ | 41,413 |  |  | $ | 15,742 |  |  | $ | 15,678 |  |  | $ | 3,033 |  |  | $ | 4,255 |  |  |  |  | $ | 12,805 |  |  | $ | 867 |  |  |  |  | $ | 93,793 |
Charge-offs |  | (867) |  |  | — |  |  | — |  |  | (45) |  |  | — |  |  |  |  | — |  |  | — |  |  |  |  | (912) |
Recoveries |  | 48 |  |  | 3 |  |  | — |  |  | 1 |  |  | — |  |  |  |  | 1 |  |  | 10 |  |  |  |  | 63 |
Net (charge-offs) recoveries |  | (819) |  |  | 3 |  |  | — |  |  | (44) |  |  | — |  |  |  |  | 1 |  |  | 10 |  |  |  |  | (849) |
(Reversal of) provision for credit losses - loans |  | (1,769) |  |  | 1,091 |  |  | 275 |  |  | (29) |  |  | 1,168 |  |  |  |  | (959) |  |  | (277) |  |  |  |  | (500) |
Balance at September 30, 2022 |  | $ | 38,825 |  |  | $ | 16,836 |  |  | $ | 15,953 |  |  | $ | 2,960 |  |  | $ | 5,423 |  |  |  |  | $ | 11,847 |  |  | $ | 600 |  |  |  |  | $ | 92,444 |
Nine Months Ended September 30, 2022: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at December 31, 2021 |  | $ | 33,557 |  |  | $ | 21,727 |  |  | $ | 17,893 |  |  | $ | 3,017 |  |  | $ | 5,622 |  |  |  |  | $ | 9,608 |  |  | $ | 1,160 |  |  |  |  | $ | 92,584 |
Charge-offs |  | (1,187) |  |  | — |  |  | — |  |  | (197) |  |  | — |  |  |  |  | (10) |  |  | (243) |  |  |  |  | (1,637) |
Recoveries |  | 32,865 |  |  | 3 |  |  | — |  |  | 762 |  |  | — |  |  |  |  | 193 |  |  | 16 |  |  |  |  | 33,839 |
Net recoveries (charge-offs) |  | 31,678 |  |  | 3 |  |  | — |  |  | 565 |  |  | — |  |  |  |  | 183 |  |  | (227) |  |  |  |  | 32,202 |
(Reversal of) provision for credit losses - loans |  | (26,410) |  |  | (4,894) |  |  | (1,940) |  |  | (622) |  |  | (199) |  |  |  |  | 2,056 |  |  | (333) |  |  |  |  | (32,342) |
Balance at September 30, 2022 |  | $ | 38,825 |  |  | $ | 16,836 |  |  | $ | 15,953 |  |  | $ | 2,960 |  |  | $ | 5,423 |  |  |  |  | $ | 11,847 |  |  | $ | 600 |  |  |  |  | $ | 92,444 |
The following table presents the activity and balance in the ALL as of or for the three and nine months ended September 30, 2021:
($ in thousands) |  | Commercial and Industrial |  | Commercial Real Estate |  | Multifamily |  | SBA |  | Construction |  |  |  | Single Family Residential Mortgage |  | Other Consumer |  |  |  | Total
ALL: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Three Months Ended September 30, 2021: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at June 30, 2021 |  | $ | 20,156 |  |  | $ | 16,424 |  |  | $ | 21,403 |  |  | $ | 3,696 |  |  | $ | 4,734 |  |  |  |  | $ | 9,108 |  |  | $ | 364 |  |  |  |  | $ | 75,885 |
Charge-offs |  | (115) |  |  | (138) |  |  | — |  |  | (74) |  |  | — |  |  |  |  | — |  |  | — |  |  |  |  | (327) |
Recoveries |  | 484 |  |  | — |  |  | — |  |  | 1 |  |  | — |  |  |  |  | 46 |  |  | 1 |  |  |  |  | 532 |
Net recoveries (charge-offs) |  | 369 |  |  | (138) |  |  | — |  |  | (73) |  |  | — |  |  |  |  | 46 |  |  | 1 |  |  |  |  | 205 |
(Reversal of) provision for credit losses - loans |  | (270) |  |  | (269) |  |  | (2,678) |  |  | 1,112 |  |  | (616) |  |  |  |  | 150 |  |  | 5 |  |  |  |  | (2,566) |
Balance at September 30, 2021 |  | $ | 20,255 |  |  | $ | 16,017 |  |  | $ | 18,725 |  |  | $ | 4,735 |  |  | $ | 4,118 |  |  |  |  | $ | 9,304 |  |  | $ | 370 |  |  |  |  | $ | 73,524 |
Nine Months Ended September 30, 2021: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at December 31, 2020 |  | $ | 20,608 |  |  | $ | 19,074 |  |  | $ | 22,512 |  |  | $ | 3,145 |  |  | $ | 5,849 |  |  |  |  | $ | 9,191 |  |  | $ | 651 |  |  |  |  | $ | 81,030 |
Charge-offs |  | (1,180) |  |  | (138) |  |  | — |  |  | (460) |  |  | — |  |  |  |  | — |  |  | — |  |  |  |  | (1,778) |
Recoveries |  | 552 |  |  | — |  |  | — |  |  | 130 |  |  | — |  |  |  |  | 46 |  |  | 2 |  |  |  |  | 730 |
Net (charge-offs) recoveries |  | (628) |  |  | (138) |  |  | — |  |  | (330) |  |  | — |  |  |  |  | 46 |  |  | 2 |  |  |  |  | (1,048) |
Provision for (reversal of) credit losses - loans |  | 275 |  |  | (2,919) |  |  | (3,787) |  |  | 1,920 |  |  | (1,731) |  |  |  |  | 67 |  |  | (283) |  |  |  |  | (6,458) |
Balance at September 30, 2021 |  | $ | 20,255 |  |  | $ | 16,017 |  |  | $ | 18,725 |  |  | $ | 4,735 |  |  | $ | 4,118 |  |  |  |  | $ | 9,304 |  |  | $ | 370 |  |  |  |  | $ | 73,524 |
Collateral Dependent Loans A loan is considered collateral dependent when the borrower is experiencing financial difficulty and repayment of the loan is expected to be provided substantially through the operation or sale of the collateral. Collateral dependent loans are evaluated individually and the ALL is determined based on the amount by which amortized costs exceed the estimated fair value of the collateral, adjusted for estimated selling costs. Collateral dependent loans consisted of the following as of the dates indicated:
|  | September 30, 2022
|  | Real Estate |  |  |  |  |  |
($ in thousands) |  | Commercial |  | Residential |  | Business Assets |  | Automobile |  | Total
Commercial: |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | — |  |  | $ | — |  |  | $ | 20,367 |  |  | $ | — |  |  | $ | 20,367 |
Commercial real estate |  | 910 |  |  | — |  |  | — |  |  | — |  |  | 910 |
SBA |  | 93 |  |  | 4,605 |  |  | 5,717 |  |  | — |  |  | 10,415 |
Consumer: |  |  |  |  |  |  |  |  |  |
Single family residential mortgage |  | — |  |  | 9,331 |  |  | — |  |  | — |  |  | 9,331 |
Other consumer |  | — |  |  | 81 |  |  | — |  |  | 104 |  |  | 185 |
Total loans |  | $ | 1,003 |  |  | $ | 14,017 |  |  | $ | 26,084 |  |  | $ | 104 |  |  | $ | 41,208 |
|  | December 31, 2021
|  | Real Estate |  |  |  |  |  |
($ in thousands) |  | Commercial |  | Residential |  | Business Assets |  | Automobile |  | Total
Commercial: |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 13,518 |  |  | $ | 37 |  |  | $ | 4,776 |  |  | $ | — |  |  | $ | 18,331 |
SBA |  | 689 |  |  | 4,458 |  |  | 11,511 |  |  | — |  |  | 16,658 |
Consumer: |  |  |  |  |  |  |  |  |  |
Single family residential mortgage |  | — |  |  | 14,012 |  |  | — |  |  | — |  |  | 14,012 |
Other consumer |  | — |  |  | — |  |  | — |  |  | 235 |  |  | 235 |
Total loans |  | $ | 14,207 |  |  | $ | 18,507 |  |  | $ | 16,287 |  |  | $ | 235 |  |  | $ | 49,236 |
Troubled Debt Restructurings TDR loans consisted of the following as of the dates indicated:
($ in thousands) |  |  |  |  |  | September 30, 2022 |  |  |  |  |  | December 31, 2021
Commercial: |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  |  |  |  | $ | 24,810 |  |  |  |  |  |  | $ | 5,241 |
Commercial real estate |  |  |  |  |  | 4,130 |  |  |  |  |  |  | 4,243 |
SBA |  |  |  |  |  | 529 |  |  |  |  |  |  | 265 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |
Single family residential mortgage |  |  |  |  |  | 1,321 |  |  |  |  |  |  | 6,935 |
Total loans |  |  |  |  |  | $ | 30,790 |  |  |  |  |  |  | $ | 16,684 |
We had commitments to lend to customers with outstanding loans that were classified as TDRs of $270 thousand and $63 thousand at September 30, 2022 and December 31, 2021. Accruing TDRs were $11.3 million and nonaccrual TDRs were $19.5 million at September 30, 2022, compared to accruing TDRs of $12.5 million and nonaccrual TDRs of $4.1 million at December 31, 2021. The increase in TDRs during the nine months ended September 30, 2022 was due mostly to the modification of two commercial and industrial loan relationships. The following table summarizes the pre-modification and post-modification balances of the new TDRs for the periods indicated:
|  | Three Months Ended |  | Nine Months Ended
($ in thousands) |  | Number of Loans |  | Pre-Modification Outstanding Recorded Investment |  | Post-Modification Outstanding Recorded Investment |  | Number of Loans |  | Pre-Modification Outstanding Recorded Investment |  | Post-Modification Outstanding Recorded Investment
September 30, 2022 |  |  |  |  |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial(1) |  | 3 |  |  | $ | 7,500 |  |  | $ | 7,500 |  |  | 4 |  |  | $ | 20,340 |  |  | $ | 20,340 |
SBA |  | — |  |  | — |  |  | — |  |  | 2 |  |  | 833 |  |  | 833 |
Total |  | 3 |  |  | $ | 7,500 |  |  | $ | 7,500 |  |  | 6 |  |  | $ | 21,173 |  |  | $ | 21,173 |
September 30, 2021 |  |  |  |  |  |  |  |  |  |  |  |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |
Single family residential mortgage(1) |  | — |  |  | $ | — |  |  | $ | — |  |  | 1 |  |  | $ | 1,800 |  |  | $ | 1,800 |
Total |  | — |  |  | $ | — |  |  | $ | — |  |  | 1 |  |  | $ | 1,800 |  |  | $ | 1,800 |
(1) Modifications during the three and nine months ended September 30, 2022 and 2021 consisted of extensions of maturity and/or changes to payment schedules. We consider a TDR to be in payment default once it becomes 30 days or more past due following a modification. During the three and nine months ended September 30, 2022 and 2021, there were no loans that were modified as a TDR during the past 12 months that had subsequent payment defaults. Purchases, Sales, and Transfers From time to time, we purchase and sell loans in the secondary market. During the three and nine months ended September 30, 2022, we purchased loans aggregating $172.7 million and $814.3 million. During the three and nine months ended September 30, 2021, we purchased loans aggregating $249.4 million and $615.4 million. There were no loans transferred from held for investment to loans held-for-sale and there were no sales of loans for the three and nine months ended September 30, 2022 and 2021. Non-Traditional Mortgage Loans (“NTM”) NTM loans are included in our SFR mortgage portfolio and are comprised of interest only loans and Green Loans. As of September 30, 2022 and December 31, 2021, the NTM loans totaled $870.0 million, or 11.9% of total loans, and $635.3 million, or 8.8% of total loans, respectively. We no longer originate SFR loans, however we have and may continue to purchase pools of loans that include NTM loans such as interest only loans with maturities of up to 40 years and flexible initial repricing dates, ranging from 1 to 10 years, and periodic repricing dates through the life of the loan. Interest only loans are primarily SFR first mortgage loans that generally have a 30 to 40-year term at the time of origination and include payment features that allow interest only payments in initial periods before converting to a fully amortizing loan. At September 30, 2022 and December 31, 2021, interest only loans totaled $863.2 million and $613.3 million. Green Loans are SFR first and second mortgage lines of credit with a linked checking account that allows all types of deposits and withdrawals to be performed. Green Loans are generally interest only for a 15-year term with a balloon payment due at maturity. At September 30, 2022 and December 31, 2021, Green Loans totaled $6.8 million and $21.9 million. At September 30, 2022 and December 31, 2021, nonperforming NTM loans totaled zero and $4.0 million. Non-Traditional Mortgage Performance Indicators Our risk management policy and credit monitoring include reviewing delinquency, FICO scores, and LTV ratios on the NTM loan portfolio. We also continuously monitor market conditions for our geographic lending areas. We have determined that the most significant performance indicators for NTM first lien loans are LTV ratios and for Green Loans are FICO scores. At September 30, 2022, our NTM first lien portfolio had a weighted average LTV of approximately 59%.

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- Definition The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -URI https://asc.fasb.org/subtopic&trid=2196772 + Details
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- References No definition available. + Details
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