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LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)
12 Months Ended
Dec. 31, 2022
Receivables [Abstract]  
Schedule of Loans and Leases Receivable
The following table presents the balances in our loan portfolio as of the dates indicated:
December 31,
($ in thousands)20222021
Commercial:
Commercial and industrial(1)
$1,845,960 $2,668,984 
Commercial real estate1,259,651 1,311,105 
Multifamily1,689,943 1,361,054 
SBA(2)
68,137 205,548 
Construction243,553 181,841 
Consumer:
Single family residential mortgage1,920,806 1,420,023 
Other consumer86,988 102,925 
Total loans7,115,038 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)20222021
Unpaid principal balance$7,107,897 $7,245,952 
Unamortized net premiums18,319 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 $3.9 million related to PCD loans
Collateral dependent loans consisted of the following as of the dates indicated:
Real Estate
($ in thousands)CommercialResidentialBusiness AssetsAutomobileTotal
December 31, 2022
Commercial:
Commercial and industrial$— $— $18,392 $— $18,392 
Commercial real estate910 — — — 910 
SBA23 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 
SBA689 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 $49,236 
Schedule of Risk Categories for Loans and Leases
The following table presents the risk categories for total loans by class of loans and origination year as of December 31, 2022:
Term Loans Amortized Cost Basis by Origination Year
($ in thousands)20222021202020192018PriorRevolving Loans Amortized Cost BasisRevolving 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 — 11,528 17,142 483 49,399 
Substandard3,833 64 3,002 502 3,630 2,729 23,012 6,501 43,273 
Doubtful— — — 4,004 — — — — 4,004 
Commercial and industrial273,200 189,780 66,975 57,507 80,442 178,651 972,618 26,787 1,845,960 
Commercial real estate
Pass348,298 363,335 60,564 94,772 155,790 224,213 1,163 61 1,248,196 
Special mention— — — — — 1,745 — — 1,745 
Substandard— — — — 8,799 910 — 9,710 
Doubtful— — — — — — — — — 
Commercial real estate348,298 363,335 60,564 94,772 155,791 234,757 2,073 61 1,259,651 
Multifamily
Pass626,186 390,928 154,636 229,511 109,887 138,063 9,307 1,658,521 
Special mention— — 2,997 — — — — — 2,997 
Substandard— — — — 11,069 17,356 — — 28,425 
Doubtful— — — — — — — — — 
Multifamily626,186 390,928 157,633 229,511 120,956 155,419 3 9,307 1,689,943 
SBA
Pass9,421 15,468 4,009 5,899 1,176 19,090 603 123 55,789 
Special mention— — — — 201 598 — 800 
Substandard— — 320 339 385 9,097 628 779 11,548 
Doubtful— — — — — — — — — 
SBA9,421 15,468 4,329 6,238 1,762 28,785 1,231 903 68,137 
Construction
Pass85,430 98,572 27,704 6,495 — 25,352 — — 243,553 
Special mention— — — — — — — — — 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Construction85,430 98,572 27,704 6,495  25,352   243,553 
Consumer:
Single family residential mortgage
Pass627,213 797,744 72,658 47,284 89,492 255,520 — — 1,889,911 
Special mention1,716 218 — 1,537 3,378 2,252 — — 9,101 
Substandard3,571 — 2,171 — 8,573 7,479 — — 21,794 
Doubtful— — — — — — — — — 
Single family residential mortgage632,500 797,962 74,829 48,821 101,443 265,251   1,920,806 
Other consumer
Pass23,340 15,986 8,805 5,524 3,363 15,920 10,914 2,747 86,599 
Special mention— (1)— — 20 62 54 138 
Substandard— — 56 — 83 31 81 — 251 
Doubtful— — — — — — — — — 
Other consumer23,340 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 mention1,716 19,420 4,039 1,540 3,580 16,143 17,204 538 64,180 
Substandard7,404 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)20212020201920182017PriorRevolving Loans Amortized Cost BasisRevolving 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 mention1,206 5,971 13,721 835 7,272 9,846 20,460 6,348 65,659 
Substandard241 17,853 11,378 3,374 117 17,429 2,391 52,785 
Doubtful— — — — — — — — — 
Commercial and industrial255,426 87,389 103,524 90,674 67,085 120,453 1,926,015 18,418 2,668,984 
Commercial real estate
Pass465,524 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 estate465,524 82,759 140,614 194,188 85,755 329,945 12,249 71 1,311,105 
Multifamily
Pass410,958 208,396 315,119 157,640 61,457 158,464 — 1,312,038 
Special mention— 1,988 — 11,261 — 33,065 — — 46,314 
Substandard— — — — — 2,702 — — 2,702 
Doubtful— — — — — — — — — 
Multifamily410,958 210,384 315,119 168,901 61,457 194,231 4  1,361,054 
SBA
Pass106,749 23,972 8,049 1,957 10,836 28,495 928 143 181,129 
Special mention— 1,586 3,618 236 — 596 — 6,040 
Substandard— 5,888 — 390 3,358 7,245 599 899 18,379 
Doubtful— — — — — — — — — 
SBA106,749 31,446 11,667 2,583 14,194 36,336 1,527 1,046 205,548 
Construction
Pass67,074 32,995 29,038 17,139 25,485 — — — 171,731 
Special mention— — — 1,607 — 8,503 — — 10,110 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Construction67,074 32,995 29,038 18,746 25,485 8,503   181,841 
Consumer:
Single family residential mortgage
Pass713,844 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 mortgage713,844 97,983 67,414 152,244 89,790 285,686 12,828 234 1,420,023 
Other consumer
Pass26,179 13,556 8,891 5,265 9,038 15,951 21,327 2,331 102,538 
Special mention— — — — 25 63 — 92 
Substandard— 61 14 148 46 26 — — 295 
Doubtful— — — — — — — — — 
Other consumer26,179 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 mention1,206 11,189 17,682 16,774 7,964 61,793 20,523 6,352 143,483 
Substandard6,190 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 $7,251,480 
Schedule of Aging of Recorded Investment in Past Due Loans and Leases
The following table presents the aging of the recorded investment in past due loans, excluding accrued interest receivable (which is not considered to be material), by class of loans as of the periods indicated:
($ in thousands)30 - 59 Days Past Due60 - 89 Days Past DueGreater than 89 Days Past dueTotal Past DueCurrentTotal
December 31, 2022
Commercial:
Commercial and industrial$4,002 $481 $13,833 $18,316 $1,827,644 $1,845,960 
Commercial real estate311 — 910 1,221 1,258,430 1,259,651 
Multifamily— — — — 1,689,943 1,689,943 
SBA287 — 10,299 10,586 57,551 68,137 
Construction— — — — 243,553 243,553 
Consumer:
Single family residential mortgage36,338 5,068 19,431 60,837 1,859,969 1,920,806 
Other consumer163 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 
Multifamily786 — — 786 1,360,268 1,361,054 
SBA987 2,360 15,941 19,288 186,260 205,548 
Construction— — — — 181,841 181,841 
Consumer:
Single family residential mortgage24,867 — 7,076 31,943 1,388,080 1,420,023 
Other consumer449 — 89 538 102,387 102,925 
Total loans$36,431 $3,711 $32,609 $72,751 $7,178,729 $7,251,480 
Schedule of Composition of Nonaccrual Loans and Leases
The following table presents nonaccrual loans as of the dates indicated:
December 31, 2022December 31, 2021
($ in thousands)Total
Nonaccrual Loans
Nonaccrual Loans with no ACLTotal
Nonaccrual Loans
Nonaccrual Loans with no ACL
Nonaccrual loans
Commercial:
Commercial and industrial$22,613 $10,959 $28,594 $9,137 
Commercial real estate910 910 — — 
SBA10,417 5,613 16,653 11,443 
Consumer:
Single family residential mortgage21,116 17,187 7,076 7,076 
Other consumer195 195 235 235 
Total nonaccrual loans$55,251 $34,864 $52,558 $27,891 
Schedule of Allowance for Loan and Lease Losses and Recorded Investment, Excluding Accrued Interest, in Loans
The following table presents a summary of activity in the ACL for the periods indicated:
Year Ended December 31,
($ in thousands)202220212020
Allowance
for
Loan Losses
Reserve for Unfunded Non-Cancellable Loan Commit-mentsAllowance
for
Credit Losses
Allowance
for
Loan Losses
Reserve for Unfunded Non-Cancellable Loan Commit-mentsAllowance
for
Credit Losses
Allowance
for
Loan Losses
Reserve for Unfunded Non-Cancellable Loan Commit-mentsAllowance
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 $84,213 
(1)Represents the amounts, at acquisition date, of expected credit losses on PCD loans, net of expected recoveries of PCD loans charged-off prior to acquisition date that we have a contractual right to receive.
The following table presents the activity and balance in the ALL as of or for the year ended December 31, 2022:
($ in thousands)Commercial
and
Industrial
Commercial Real EstateMultifamilySBAConstructionSingle Family Residential MortgageOther ConsumerTotal
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)
Recoveries32,887 — 791 — 193 18 33,896 
Net recoveries (charge-offs)24,290 — 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 EstateMultifamilySBAConstructionSingle Family Residential MortgageOther ConsumerTotal
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)
Recoveries3,150 — — 132 — 74 3,358 
Net (charge-offs) recoveries(3,059)(576)— (2,648)— (247)(6,528)
Provision for (reversal of) credit losses4,075 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 $92,584 
Schedule of Troubled Debt Restructurings
TDR loans consisted of the following as of the dates indicated:
December 31,
($ in thousands)20222021
Commercial:
Commercial and industrial$14,636 $5,241 
Commercial real estate— 4,243 
SBA295 265 
Consumer:
Single family residential mortgage1,214 6,935 
Total loans$16,145 $16,684 
The following table summarizes the pre-modification and post-modification balances of the new TDRs for the periods indicated:
Year Ended December 31,
202220212020
($ in thousands)Number of LoansPre-Modification Outstanding Recorded InvestmentPost-Modification Outstanding Recorded InvestmentNumber of LoansPre-Modification Outstanding Recorded InvestmentPost-Modification Outstanding Recorded InvestmentNumber of LoansPre-Modification Outstanding Recorded InvestmentPost-Modification Outstanding Recorded Investment
Commercial:
Commercial and industrial
$20,340 $20,340 — $— $— $5,000 $5,000 
SBA
833 833 — — — — — — 
Consumer:
Single family residential mortgage
— — — 3,420 3,420 — — — 
Total6 $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)CountAmountCountAmountCountAmount
Year ended December 31, 2022
Commercial:
Commercial and industrial(2)
$1,000 $19,340 $20,340 
SBA
— — 833 833 
Total1 $1,000 5 $20,173 6 $21,173 
Year ended December 31, 2021
Consumer:
Single family residential mortgage(3)
— $— $3,420 $3,420 
Total $ 2 $3,420 2 $3,420 
Year ended December 31, 2020
Commercial:
Commercial and industrial
— $— $5,000 $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 $1.8 million that included both an extension in maturity and change in interest rate from variable to fixed.
Schedule of Financing Receivables, Purchases and Sales
The following table presents loans purchased and/or sold by portfolio segment, excluding loans held-for-sale and loans acquired in a business combination for the periods indicated:
Year Ended December 31,
202220212020
($ in thousands)PurchasesSalesPurchasesSalesPurchasesSales
Commercial:
Multifamily$— $— $29,764 $— $120,900 $— 
Construction— — — — 14,750 — 
Consumer:
Single family residential mortgage814,262 — 795,773 — 149,687 — 
Total$814,262 $ $825,537 $ $285,337 $ 
Schedule of Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period
The following table presents PCD loans acquired for the periods indicated:
Year Ended December 31,
($ in thousands)202220212020
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