XML 27 R14.htm IDEA: XBRL DOCUMENT

LOANS AND ALLOWANCE FOR CREDIT LOSSES

12 Months Ended

Dec. 31, 2022

The following table presents the balances in our loan portfolio as of the dates indicated:


	December 31,
($ in thousands)	2022		2021
Commercial:
Commercial and industrial(1)	$	1,845,960	$	2,668,984
Commercial real estate	1,259,651		1,311,105
Multifamily	1,689,943		1,361,054
SBA(2)	68,137		205,548
Construction	243,553		181,841

Consumer:
Single family residential mortgage	1,920,806		1,420,023


Other consumer	86,988		102,925
Total loans	7,115,038		7,251,480
Allowance for loan losses	(85,960)		(92,584)
Loans receivable, net	$	7,029,078	$	7,158,896

(1)Includes warehouse lending balances of $602.5 million and $1.60 billion at December 31, 2022 and 2021.

(2)Includes 20 PPP loans totaling $5.7 million at December 31, 2022 and 397 PPP loans totaling $123.1 million at December 31, 2021.

The following table presents the components of total loans as of the dates indicated:


	December 31,
($ in thousands)	2022		2021
Unpaid principal balance	$	7,107,897	$	7,245,952
Unamortized net premiums	18,319		18,005
Unamortized net deferred costs	(1,880)		819
Unamortized SBA PPP fees	—		(831)
Fair value adjustment(1)	(9,298)		(12,465)
Total loans	$	7,115,038	$	7,251,480

(1)Includes $8.0 million related to the PMB Acquisition at December 31, 2022, of which $4.1 million related to PCD loans, and $10.6 million related to the PMB Acquisition at December 31, 2021, 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 analyze the associated risks in the current loan portfolio and individually 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 risk ratings:

Pass: Loans risk rated 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 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 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 the institution will sustain some loss if the deficiencies are not corrected.

Doubtful: Loans risk rated 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 December 31, 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
December 31, 2022
















Commercial:
Commercial and industrial
Pass	$	269,367	$	170,513	$	62,931	$	53,001	$	76,811	$	164,394	$	932,464	$	19,803	$	1,749,284
Special mention	—		19,203		1,042		—		1		11,528		17,142		483		49,399
Substandard	3,833		64		3,002		502		3,630		2,729		23,012		6,501		43,273
Doubtful	—		—		—		4,004		—		—		—		—		4,004
Commercial and industrial	273,200		189,780		66,975		57,507		80,442		178,651		972,618		26,787		1,845,960
Commercial real estate
Pass	348,298		363,335		60,564		94,772		155,790		224,213		1,163		61		1,248,196
Special mention	—		—		—		—		—		1,745		—		—		1,745
Substandard	—		—		—		—		1		8,799		910		—		9,710
Doubtful	—		—		—		—		—		—		—		—		—
Commercial real estate	348,298		363,335		60,564		94,772		155,791		234,757		2,073		61		1,259,651
Multifamily
Pass	626,186		390,928		154,636		229,511		109,887		138,063		3		9,307		1,658,521
Special mention	—		—		2,997		—		—		—		—		—		2,997
Substandard	—		—		—		—		11,069		17,356		—		—		28,425
Doubtful	—		—		—		—		—		—		—		—		—
Multifamily	626,186		390,928		157,633		229,511		120,956		155,419		3		9,307		1,689,943
SBA
Pass	9,421		15,468		4,009		5,899		1,176		19,090		603		123		55,789
Special mention	—		—		—		—		201		598		—		1		800
Substandard	—		—		320		339		385		9,097		628		779		11,548
Doubtful	—		—		—		—		—		—		—		—		—
SBA	9,421		15,468		4,329		6,238		1,762		28,785		1,231		903		68,137


Construction
Pass	85,430		98,572		27,704		6,495		—		25,352		—		—		243,553
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—		—
Construction	85,430		98,572		27,704		6,495		—		25,352		—		—		243,553
Consumer:
Single family residential mortgage
Pass	627,213		797,744		72,658		47,284		89,492		255,520		—		—		1,889,911
Special mention	1,716		218		—		1,537		3,378		2,252		—		—		9,101
Substandard	3,571		—		2,171		—		8,573		7,479		—		—		21,794
Doubtful	—		—		—		—		—		—		—		—		—
Single family residential mortgage	632,500		797,962		74,829		48,821		101,443		265,251		—		—		1,920,806
Other consumer
Pass	23,340		15,986		8,805		5,524		3,363		15,920		10,914		2,747		86,599
Special mention	—		(1)		—		3		—		20		62		54		138
Substandard	—		—		56		—		83		31		81		—		251
Doubtful	—		—		—		—		—		—		—		—		—
Other consumer	23,340		15,985		8,861		5,527		3,446		15,971		11,057		2,801		86,988


Total loans	$	1,998,375	$	1,872,030	$	400,895	$	448,871	$	463,840	$	904,186	$	986,982	$	39,859	$	7,115,038

Total loans
Pass	$	1,989,255	$	1,852,546	$	391,307	$	442,486	$	436,519	$	842,552	$	945,147	$	32,041	$	6,931,853
Special mention	1,716		19,420		4,039		1,540		3,580		16,143		17,204		538		64,180
Substandard	7,404		64		5,549		841		23,741		45,491		24,631		7,280		115,001
Doubtful	—		—		—		4,004		—		—		—		—		4,004
Total loans	$	1,998,375	$	1,872,030	$	400,895	$	448,871	$	463,840	$	904,186	$	986,982	$	39,859	$	7,115,038

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 periods indicated:


($ in thousands)	30 - 59 Days Past Due		60 - 89 Days Past Due		Greater than 89 Days Past due		Total Past Due		Current		Total
December 31, 2022
Commercial:
Commercial and industrial	$	4,002	$	481	$	13,833	$	18,316	$	1,827,644	$	1,845,960
Commercial real estate	311		—		910		1,221		1,258,430		1,259,651
Multifamily	—		—		—		—		1,689,943		1,689,943
SBA	287		—		10,299		10,586		57,551		68,137
Construction	—		—		—		—		243,553		243,553

Consumer:
Single family residential mortgage	36,338		5,068		19,431		60,837		1,859,969		1,920,806
Other consumer	163		16		81		260		86,728		86,988
Total loans	$	41,101	$	5,565	$	44,554	$	91,220	$	7,023,818	$	7,115,038

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 loans	$	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:


	December 31, 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	$	22,613	$	10,959	$	28,594	$	9,137
Commercial real estate	910		910		—		—

SBA	10,417		5,613		16,653		11,443


Consumer:
Single family residential mortgage	21,116		17,187		7,076		7,076


Other consumer	195		195		235		235
Total nonaccrual loans	$	55,251	$	34,864	$	52,558	$	27,891

At December 31, 2022 and 2021, there were no loans that were past due 90 days or more and still accruing.

Other Real Estate Owned and Loans in Process of Foreclosure

At December 31, 2022 and December 31, 2021, there was no other real estate owned. At December 31, 2022, there were nine consumer mortgage loans totaling $11.7 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 December 31, 2022. The published forecasts consider the FRB's monetary policy, labor market constraints, high inflation, supply chain stress 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 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 noncancellable 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 Topic 326. At December 31, 2022 and 2021, the reserve for unfunded noncancellable loan commitments was $5.3 million and $5.6 million 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:


	Year Ended December 31,
($ in thousands)	2022						2021						2020
	Allowance for Loan Losses		Reserve for Unfunded Non-Cancellable Loan Commit-ments		Allowance for Credit Losses		Allowance for Loan Losses		Reserve for Unfunded Non-Cancellable Loan Commit-ments		Allowance for Credit Losses		Allowance for Loan Losses		Reserve for Unfunded Non-Cancellable Loan Commit-ments		Allowance for Credit Losses
Balance at beginning of year	$	92,584	$	5,605	$	98,189	$	81,030	$	3,183	$	84,213	$	57,649	$	4,064	$	61,713
Impact of adopting ASU 2016-13	—		—		—		—		—		—		7,609		(1,226)		6,383
Initial reserve for purchased credit-deteriorated loans (1)	—		—		—		13,650		—		13,650		—		—		—
Loans charged off	(9,278)		—		(9,278)		(9,886)		—		(9,886)		(15,417)		—		(15,417)
Recoveries of loans previously charged off	33,896		—		33,896		3,358		—		3,358		1,815		—		1,815
Net recoveries (charge-offs)	24,618		—		24,618		(6,528)		—		(6,528)		(13,602)		—		(13,602)

(Reversal of) provision for credit losses	(31,242)		(300)		(31,542)		4,432		2,422		6,854		29,374		345		29,719
Balance at end of year	$	85,960	$	5,305	$	91,265	$	92,584	$	5,605	$	98,189	$	81,030	$	3,183	$	84,213

(1)Represents the amounts, at acquisition date, of expected credit losses on PCD loans, net of expected recoveries of PCD loans charged-off prior to acquisition date that we have a contractual right to receive.

During 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.

During 2021, we recorded a $13.7 million initial allowance for credit losses established for PCD loans from the PMB Acquisition and an $11.3 million initial charge to provision for credit losses for all other loans and unfunded commitments acquired from PMB. During 2021, net charge-offs included $4.4 million related to a commercial and industrial loan acquired from PMB and a $2.0 million SBA relationship. During 2021, recoveries totaled $3.4 million and included $2.6 million of recoveries related to PCD loans acquired from PMB that were charged-off prior to acquisition date that we had a contractual right to receive.

During 2020, a $16.1 million legacy shared national credit was resolved resulting in a charge-off of $10.7 million.

Accrued interest receivable on loans receivable, net totaled $28.6 million and $25.8 million at December 31, 2022 and 2021, and is included within other assets in the accompanying consolidated statements of financial condition. Accrued interest receivable is excluded from the allowance for credit losses.

The following table presents the activity and balance in the ALL as of or for the year ended December 31, 2022:


($ in thousands)	Commercial and Industrial		Commercial Real Estate		Multifamily		SBA		Construction		Single Family Residential Mortgage		Other Consumer		Total
ALL:
Balance at December 31, 2021	$	33,557	$	21,727	$	17,893	$	3,017	$	5,622	$	9,608	$	1,160	$	92,584


Charge-offs	(8,597)		—		—		(428)		—		(10)		(243)		(9,278)
Recoveries	32,887		7		—		791		—		193		18		33,896
Net recoveries (charge-offs)	24,290		7		—		363		—		183		(225)		24,618

(Reversal of) provision for credit losses	(23,691)		(5,757)		(3,197)		(732)		228		2,259		(352)		(31,242)
Balance at December 31, 2022	$	34,156	$	15,977	$	14,696	$	2,648	$	5,850	$	12,050	$	583	$	85,960

The following table presents the activity and balance in the ALL as of or for the year ended December 31, 2021:


($ in thousands)	Commercial and Industrial		Commercial Real Estate		Multifamily		SBA		Construction		Single Family Residential Mortgage		Other Consumer		Total
ALL:
Balance at December 31, 2020	$	20,608	$	19,074	$	22,512	$	3,145	$	5,849	$	9,191	$	651	$	81,030

Initial reserve for purchased credit-deteriorated loans(1)	11,933		614		469		575		28		—		31		13,650
Charge-offs	(6,209)		(576)		—		(2,780)		—		(321)		—		(9,886)
Recoveries	3,150		—		—		132		—		74		2		3,358
Net (charge-offs) recoveries	(3,059)		(576)		—		(2,648)		—		(247)		2		(6,528)

Provision for (reversal of) credit losses	4,075		2,615		(5,088)		1,945		(255)		664		476		4,432
Balance at December 31, 2021	$	33,557	$	21,727	$	17,893	$	3,017	$	5,622	$	9,608	$	1,160	$	92,584

(1)Represents the amounts, at acquisition date, of expected credit losses on PCD loans and expected recoveries of PCD loans charged-off prior to acquisition date that we have a contractual right to receive.

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:


	Real Estate
($ in thousands)	Commercial		Residential		Business Assets		Automobile		Total
December 31, 2022
Commercial:
Commercial and industrial	$	—	$	—	$	18,392	$	—	$	18,392
Commercial real estate	910		—		—		—		910

SBA	23		4,702		5,691		—		10,416


Consumer:
Single family residential mortgage	—		21,262		—		—		21,262
Other consumer	—		81		—		113		194
Total loans	$	933	$	26,045	$	24,083	$	113	$	51,174

December 31, 2021
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 (TDRs)

TDR loans consisted of the following as of the dates indicated:


	December 31,
($ in thousands)	2022		2021
Commercial:
Commercial and industrial	$	14,636	$	5,241
Commercial real estate	—		4,243
SBA	295		265
Consumer:
Single family residential mortgage	1,214		6,935

Total loans	$	16,145	$	16,684

We had commitments to lend to customers with outstanding loans that were classified as TDRs of $97 thousand and $63 thousand at December 31, 2022 and 2021. Accruing TDRs were $2.7 million and nonaccrual TDRs were $13.4 million at December 31, 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 year ended December 31, 2022 was primarily due 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:


	Year Ended December 31,
	2022					2021					2020
($ 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		Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial:
Commercial and industrial	4	$	20,340	$	20,340	—	$	—	$	—	1	$	5,000	$	5,000
SBA	2	833		833		—	—		—		—	—		—
Consumer:
Single family residential mortgage	—	—		—		2	3,420		3,420		—	—		—

Total	6	$	21,173	$	21,173	2	$	3,420	$	3,420	1	$	5,000	$	5,000

We consider a TDR to be in payment default once it becomes 30 days or more past due following a modification. For the year ended December 31, 2022 and 2021, there were no loans that were modified as a TDR during the prior 12 months that had subsequent payment defaults. For the year ended December 31, 2020, there was one SBA loan that was modified as TDRs during the prior 12 months that had a subsequent payment default. The following table summarizes the TDRs by modification type for the periods indicated:


		Modification Type
	Change in Principal Payments					Extension of Maturity(1)		Total
($ in thousands)			Count	Amount			Count	Amount		Count	Amount
Year ended December 31, 2022
Commercial:
Commercial and industrial(2)			1	$	1,000		3	$	19,340	4	$	20,340
SBA			—	—			2	833		2	833



Total			1	$	1,000		5	$	20,173	6	$	21,173
Year ended December 31, 2021



Consumer:
Single family residential mortgage(3)			—	$	—		2	$	3,420	2	$	3,420

Total			—	$	—		2	$	3,420	2	$	3,420
Year ended December 31, 2020
Commercial:
Commercial and industrial			—	$	—		1	$	5,000	1	$	5,000

Total			—	$	—		1	$	5,000	1	$	5,000

(1)Excludes loans in forbearance or deferment that received an extension of maturity through the CARES Act during the years ended December 31, 2021 and 2020.

(2)Includes three commercial and industrial loans aggregating $19.3 million that included both an extension in maturity and payment plan

(3)Includes one SFR mortgage loan totaling $1.8 million that included both an extension in maturity and change in interest rate from variable to fixed.

Purchases, Sales, and Transfers

The following table presents loans purchased and/or sold by portfolio segment, excluding loans held-for-sale and loans acquired in a business combination for the periods indicated:


	Year Ended December 31,
	2022				2021				2020
($ in thousands)	Purchases		Sales		Purchases		Sales		Purchases		Sales
Commercial:


Multifamily	$	—	$	—	$	29,764	$	—	$	120,900	$	—

Construction	—		—		—		—		14,750		—

Consumer:
Single family residential mortgage	814,262		—		795,773		—		149,687		—

Total	$	814,262	$	—	$	825,537	$	—	$	285,337	$	—

Loan purchases during the years ended December 31, 2022, 2021, and 2020 were made at a net premium of $4.0 million, $17.5 million and $4.7 million.

The following table presents PCD loans acquired for the periods indicated:


	Year Ended December 31,
($ in thousands)	2022		2021		2020
Par value	—		225,405		—
Initial reserve based on ACL methodology(1)	—		(16,200)		—
Net discount related to items other than credit	—		(3,786)		—
Total purchase price	$	—	$	205,419	$	—

(1)The initial reserve for PCD loans at acquisition date and based on our ACL methodology was $13.7 million and included $2.6 million related to expected recoveries of loans that were fully or partially charged off prior to acquisition.

There were no transfers of loans between loans held-for-sale and loans held-for-investment during the years ended December 31, 2022 and 2020. During the year ended 2021, we transferred $4.4 million of commercial mortgage loans and $10.8 million of SFR mortgage loans to held-for-sale.

Non-Traditional Mortgage (NTM) Loans

NTM loans are included in our SFR mortgage portfolio and are comprised primarily of interest only loans. As of December 31, 2022 and 2021, the NTM loans totaled $862.3 million, or 12.1% of total loans, and $635.3 million, or 8.8% of total loans, respectively.

We no longer originate SFR loans, however we have purchased 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 December 31, 2022 and 2021, nonperforming NTM loans totaled $3.0 million 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. At December 31, 2022, our NTM first lien portfolio had a weighted average LTV of approximately 59%.