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Loans Receivable and Allowance for Credit Losses | 6 Months Ended
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Jun. 30, 2025
Receivables [Abstract] |
Loans Receivable and Allowance for Credit Losses | Loans Receivable and Allowance for Credit Losses Loans held for investment as of June 30, 2025 and December 31, 2024 are summarized as follows (in thousands):
|  | June 30, 2025 |  | December 31, 2024
Mortgage loans: |  |  |  |
Commercial |  | $ | 7,313,904 |  |  | 7,228,078 |
Multi-family |  | 3,517,509 |  |  | 3,382,933 |
Construction |  | 751,914 |  |  | 823,503 |
Residential |  | 1,985,355 |  |  | 2,010,637 |
Total mortgage loans |  | 13,568,682 |  |  | 13,445,151 |
Commercial loans |  | 4,929,022 |  |  | 4,608,600 |
Consumer loans |  | 617,190 |  |  | 613,819 |
Total gross loans |  | 19,114,894 |  |  | 18,667,570 |
Premiums on purchased loans |  | 1,308 |  |  | 1,338 |
Net deferred fees |  | (11,372) |  |  | (9,538) |
Total loans |  | $ | 19,104,830 |  |  | 18,659,370 |
Accrued interest on loans totaled $79.5 million and $78.5 million as of June 30, 2025 and December 31, 2024, respectively, and is presented within total accrued interest receivable on the consolidated statements of financial condition. The following tables summarize the aging of loans held for investment by portfolio segment and class of loans (in thousands):
|  | June 30, 2025
|  | 30-59 Days |  | 60-89 Days |  | Non-accrual |  | Recorded Investment > 90 days accruing |  | Total Past Due |  | Current |  | Total Loans Receivable |  | Non-accrual loans with no related allowance
Mortgage loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  | $ | 129 |  |  | 347 |  |  | 42,828 |  |  | — |  |  | 43,304 |  |  | 7,270,600 |  |  | 7,313,904 |  |  | 36,003 |
Multi-family |  | — |  |  | 431 |  |  | 6,143 |  |  | — |  |  | 6,574 |  |  | 3,510,935 |  |  | 3,517,509 |  |  | 6,143 |
Construction |  | — |  |  | — |  |  | 18,901 |  |  | — |  |  | 18,901 |  |  | 733,013 |  |  | 751,914 |  |  | 18,901 |
Residential |  | 5,541 |  |  | 3,816 |  |  | 7,209 |  |  | — |  |  | 16,566 |  |  | 1,968,789 |  |  | 1,985,355 |  |  | 7,209 |
Total mortgage loans |  | 5,670 |  |  | 4,594 |  |  | 75,081 |  |  | — |  |  | 85,345 |  |  | 13,483,337 |  |  | 13,568,682 |  |  | 68,256 |
Commercial loans |  | 997 |  |  | 4,389 |  |  | 30,531 |  |  | — |  |  | 35,917 |  |  | 4,893,105 |  |  | 4,929,022 |  |  | 18,260 |
Consumer loans |  | 1,592 |  |  | 699 |  |  | 1,547 |  |  | — |  |  | 3,838 |  |  | 613,352 |  |  | 617,190 |  |  | 1,547 |
Total gross loans |  | $ | 8,259 |  |  | 9,682 |  |  | 107,159 |  |  | — |  |  | 125,100 |  |  | 18,989,794 |  |  | 19,114,894 |  |  | 88,063 |
|  | December 31, 2024
|  | 30-59 Days |  | 60-89 Days |  | Non-accrual |  | Recorded Investment > 90 days accruing |  | Total Past Due |  | Current |  | Total Loans Receivable |  | Non-accrual loans with no related allowance
Mortgage loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  | $ | 8,538 |  |  | 3,954 |  |  | 20,883 |  |  | — |  |  | 33,375 |  |  | 7,194,703 |  |  | 7,228,078 |  |  | 13,575 |
Multi-family |  | — |  |  | — |  |  | 7,498 |  |  | — |  |  | 7,498 |  |  | 3,375,435 |  |  | 3,382,933 |  |  | 7,498 |
Construction |  | — |  |  | — |  |  | 13,246 |  |  | — |  |  | 13,246 |  |  | 810,257 |  |  | 823,503 |  |  | 13,246 |
Residential |  | 6,388 |  |  | 5,049 |  |  | 4,535 |  |  | — |  |  | 15,972 |  |  | 1,994,665 |  |  | 2,010,637 |  |  | 4,535 |
Total mortgage loans |  | 14,926 |  |  | 9,003 |  |  | 46,162 |  |  | — |  |  | 70,091 |  |  | 13,375,060 |  |  | 13,445,151 |  |  | 38,854 |
Commercial loans |  | 3,026 |  |  | 1,117 |  |  | 24,243 |  |  | — |  |  | 30,868 |  |  | 4,577,732 |  |  | 4,608,600 |  |  | 15,164 |
Consumer loans |  | 3,152 |  |  | 856 |  |  | 1,656 |  |  | — |  |  | 5,664 |  |  | 608,155 |  |  | 613,819 |  |  | 1,656 |
Total gross loans |  | $ | 21,104 |  |  | 10,976 |  |  | 72,061 |  |  | — |  |  | 106,623 |  |  | 18,560,947 |  |  | 18,667,570 |  |  | 55,674 |
There were no non-accrual or past due loans held for sale as of June 30, 2025. As of December 31, 2024, total non-accrual loans held for sale, which are not in the tables above totaled $2.4 million. Additionally, as of December 31, 2024, total past due loans held for sale, including non-accrual loans held for sale, totaled $4.8 million. Included in loans held for investment are loans for which the accrual of interest income has been discontinued due to deterioration in the financial condition of the borrowers. The principal amounts of these non-accrual loans were $107.2 million and $72.1 million as of June 30, 2025 and December 31, 2024, respectively. Included in non-accrual loans were $41.7 million and $24.6 million of loans which were less than 90 days past due as of June 30, 2025 and December 31, 2024, respectively. There were no loans 90 days or greater past due and still accruing interest as of June 30, 2025 and December 31, 2024. The activity in the allowance for credit losses by portfolio segment for the three and six months ended June 30, 2025 and 2024 was as follows (in thousands):
Three months ended June 30, |  | Mortgage loans |  | Commercial loans |  | Consumer loans |  | Total
2025 |  |  |  |  |  |  |  |
Balance at beginning of period |  | $ | 140,683 |  |  | 45,901 |  |  | 5,186 |  |  | 191,770 |
Provision (benefit) charge to operations |  | (8,233) |  |  | 5,582 |  |  | 1 |  |  | (2,650) |
Recoveries of loans previously charged-off |  | 41 |  |  | 75 |  |  | 113 |  |  | 229 |
Loans charged-off |  | (1,044) |  |  | (330) |  |  | (104) |  |  | (1,478) |
Balance at end of period |  | $ | 131,447 |  |  | 51,228 |  |  | 5,196 |  |  | 187,871 |
2024 |  |  |  |  |  |  |  |
Balance at beginning of period |  | $ | 65,890 |  |  | 38,292 |  |  | 2,247 |  |  | 106,429 |
Provision charge to operations |  | 58,790 |  |  | 5,038 |  |  | 2,226 |  |  | 66,054 |
Initial allowance on credit loans related to PCD loans |  | 10,628 |  |  | 6,070 |  |  | 490 |  |  | 17,188 |
Recoveries of loans previously charged-off |  | 4 |  |  | 825 |  |  | 134 |  |  | 963 |
Loans charged-off |  | — |  |  | (2,222) |  |  | (81) |  |  | (2,303) |
Balance at end of period |  | $ | 135,312 |  |  | 48,003 |  |  | 5,016 |  |  | 188,331 |
Six months ended June 30, |  | Mortgage loans |  | Commercial loans |  | Consumer loans |  | Total
2025 |  |  |  |  |  |  |  |
Balance at beginning of period |  | $ | 144,587 |  |  | 43,642 |  |  | 5,203 |  |  | 193,432 |
Provision (benefit) charge to operations |  | (12,054) |  |  | 9,758 |  |  | (29) |  |  | (2,325) |
Recoveries of loans previously charged-off |  | 847 |  |  | 354 |  |  | 304 |  |  | 1,505 |
Loans charged-off |  | (1,933) |  |  | (2,526) |  |  | (282) |  |  | (4,741) |
Balance at end of period |  | $ | 131,447 |  |  | 51,228 |  |  | 5,196 |  |  | 187,871 |
2024 |  |  |  |  |  |  |  |
Balance at beginning of period |  | $ | 73,407 |  |  | 31,475 |  |  | 2,318 |  |  | 107,200 |
Provision charge to operations |  | 51,210 |  |  | 12,963 |  |  | 2,081 |  |  | 66,254 |
Initial allowance on credit loans related to PCD loans |  | 10,628 |  |  | 6,070 |  |  | 490 |  |  | 17,188 |
Recoveries of loans previously charged-off |  | 67 |  |  | 1,512 |  |  | 279 |  |  | 1,858 |
Loans charged-off |  | — |  |  | (4,017) |  |  | (152) |  |  | (4,169) |
Balance at end of period |  | $ | 135,312 |  |  | 48,003 |  |  | 5,016 |  |  | 188,331 |
For the three and six months ended June 30, 2025, the Company recorded a $2.7 million and a $2.3 million benefit to the provision for credit losses on loans, respectively. The benefit to the provision for credit losses on loans in the quarter was primarily attributable to an improved economic forecast and an overall improvement in the Company's asset quality, partially offset by an increase in specific reserves required on individually analyzed loans. For the three and six months ended June 30, 2025, net charge-offs totaled $1.2 million and $3.2 million, respectively. The following table summarizes the Company's gross charge-offs recorded during the three months ended June 30, 2025 by year of origination (in thousands):
|  | 2025 |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | Prior to 2021 |  | Total Loans
Mortgage loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  | $ | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 977 |  |  | 977 |
Multi-family |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 67 |  |  | 67 |
Total mortgage loans |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,044 |  |  | 1,044 |
Commercial loans |  | — |  |  | — |  |  | 39 |  |  | 231 |  |  | 60 |  |  | — |  |  | 330 |
Consumer loans (1) |  | 6 |  |  | 3 |  |  | — |  |  | — |  |  | — |  |  | 10 |  |  | 19 |
Total gross loans |  | $ | 6 |  |  | 3 |  |  | 39 |  |  | 231 |  |  | 60 |  |  | 1,054 |  |  | 1,393 |
(1) During the three months ended June 30, 2025, charge-offs on consumer overdraft accounts totaled $85,000, which are not included in the table above. The following table summarizes the Company's gross charge-offs recorded during the six months ended June 30, 2025 by year of origination (in thousands):
|  | 2025 |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | Prior to 2021 |  | Total Loans
Mortgage loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  | $ | — |  |  | — |  |  | — |  |  | 358 |  |  | — |  |  | 1,508 |  |  | 1,866 |
Multi-family |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 67 |  |  | 67 |
Total mortgage loans |  | — |  |  | — |  |  | — |  |  | 358 |  |  | — |  |  | 1,575 |  |  | 1,933 |
Commercial loans |  | — |  |  | — |  |  | 39 |  |  | 2,362 |  |  | 125 |  |  | — |  |  | 2,526 |
Consumer loans (1) |  | 18 |  |  | 13 |  |  | 12 |  |  | 3 |  |  | — |  |  | 37 |  |  | 83 |
Total gross loans |  | $ | 18 |  |  | 13 |  |  | 51 |  |  | 2,723 |  |  | 126 |  |  | 1,611 |  |  | 4,542 |
(1) During the six months ended June 30, 2025, charge-offs on consumer overdraft accounts totaled $199,000, which are not included in the table above. The following table summarizes the Company's gross charge-offs recorded during the three months ended June 30, 2024 by year of origination (in thousands):
|  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | Prior to 2020 |  | Total Loans
Commercial loans |  | $ | — |  |  | — |  |  | 157 |  |  | 2,046 |  |  | — |  |  | 18 |  |  | 2,222 |
Consumer loans (1) |  | 7 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 7 |
Total gross loans |  | $ | 7 |  |  | — |  |  | 157 |  |  | 2,046 |  |  | — |  |  | 17 |  |  | 2,229 |
(1) During the three months ended June 30, 2024, charge-offs on consumer overdraft accounts totaled $74,000, which are not included in the table above. The following table summarizes the Company's gross charge-offs recorded during the six months ended June 30, 2024 by year of origination (in thousands):
|  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | Prior to 2020 |  | Total Loans
Commercial loans |  | $ | — |  |  | — |  |  | 158 |  |  | 2,047 |  |  | 1,606 |  |  | 206 |  |  | 4,017 |
Consumer loans (1) |  | 13 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | 14 |
Total gross loans |  | $ | 13 |  |  | — |  |  | 158 |  |  | 2,047 |  |  | 1,606 |  |  | 207 |  |  | 4,031 |
(1) During the six months ended June 30, 2024, charge-offs on consumer overdraft accounts totaled $138,000, which are not included in the table above. The Company defines a loan individually evaluated for impairment as a non-homogeneous loan greater than $1.0 million, for which, based on current information, it is not expected to collect all amounts due under the contractual terms of the loan agreement. As of June 30, 2025, there were 29 loans totaling $92.7 million, compared to 26 loans totaling $55.4 million as of December 31, 2024, that were individually evaluated for impairment. A financial asset is considered collateral-dependent when the debtor is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. For all classes of loans deemed collateral-dependent, the Company estimates expected credit losses based on the collateral’s fair value less any selling costs. A specific allocation of the allowance for credit losses is established for each collateral-dependent loan with a carrying balance greater than the collateral’s fair value, less estimated selling costs. In most cases, the Company records a partial charge-off to reduce the loan’s carrying value to the collateral’s fair value less estimated selling costs. The Company uses third-party appraisals to determine the fair value of the underlying collateral in its analysis of collateral-dependent loans. A third-party appraisal is generally ordered as soon as a loan is designated as a collateral-dependent loan and updated annually, or more frequently if required. At each fiscal quarter end, if a loan is designated as collateral-dependent and the third-party appraisal has not yet been received, an evaluation of all available collateral is made using the best information available at the time, including rent rolls, borrower financial statements and tax returns, prior appraisals, management’s knowledge of the market and collateral, and internally prepared collateral valuations based upon market assumptions regarding vacancy and capitalization rates, each as and where applicable. Once the appraisal is received and reviewed, the specific reserves are adjusted to reflect the appraised value and evaluated for charge offs. The Company believes there have not been any significant time lapses since the receipt of the most recent appraisals. For loans deemed collateral-dependent as defined above, the fair value is based on the underlying collateral. As of June 30, 2025 and December 31, 2024, the Company had collateral-dependent loans with fair values of $79.6 million and $11.0 million secured by commercial real estate, respectively. Loan modifications to borrowers experiencing financial difficulty may include interest rate reductions, principal or interest forgiveness, forbearance, term extensions, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral. In addition, management attempts to obtain additional collateral or guarantor support when modifying such loans. If the borrower has demonstrated performance under the previous terms and our underwriting process shows the borrower has the capacity to continue to perform under the restructured terms, the loan will continue to accrue interest. Non-accruing restructured loans may be returned to accrual status when there has been a sustained period of repayment performance (generally six consecutive months of payments) and both principal and interest are deemed collectible. The following illustrates the most common loan modifications by loan classes offered by the Company that are required to be disclosed pursuant to the requirements of ASU 2022-02:
Loan Classes |  | Modification types
Commercial |  | Term extension, interest rate reductions, payment delay, or combination thereof. These modifications extend the term of the loan, lower the payment amount, or otherwise delay payments during a defined period for the purpose of providing borrowers additional time to return to compliance with the original loan term.
Residential Mortgage/ Home Equity |  | Forbearance period greater than six months. These modifications require reduced or no payments during the forbearance period for the purpose of providing borrowers additional time to return to compliance with the original loan term as well as term extension and rate adjustment. These modifications extend the term of the loan and provides for an adjustment to the interest rate, which reduces the monthly payment requirement.
Direct Installment |  | Term extension greater than three months. These modifications extend the term of the loan, which reduces the monthly payment requirement.
The following tables present the amortized cost basis of loan modifications made to borrowers experiencing financial difficulty during the three and six months ended June 30, 2025 (in thousands):
|  | For the three months ended June 30, 2025
|  | Term Extension |  | Interest Rate Reduction |  | Interest Rate Reduction and Term Extension |  | % of Total Class of Loans
Mortgage loans: |  |  |  |  |  |  |  |
Commercial |  | $ | — |  |  | — |  | 10,918 |  |  | 0.15 | %
Total mortgage loans |  | — |  |  | — |  | 10,918 |  |  | 0.08 | %
Commercial loans |  | 158 |  |  | — |  | — |  |  | 0.003 | %
Total gross loans |  | $ | 158 |  |  | — |  | 10,918 |  |  | 0.06 | %
|  | For the six months ended June 30, 2025
|  | Term Extension |  | Interest Rate Reduction |  | Interest Rate Reduction and Term Extension |  | % of Total Class of Loans
Mortgage loans: |  |  |  |  |  |  |  |
Commercial |  | $ | 2,984 |  |  | — |  | 11,945 |  |  | 0.20 | %
Total mortgage loans |  | 2,984 |  |  | — |  | 11,945 |  |  | 0.11 | %
Commercial loans |  | 1,302 |  |  | — |  | 603 |  |  | 0.04 | %
Total gross loans |  | $ | 4,286 |  |  | — |  | 12,548 |  |  | 0.09 | %
The following tables present the amortized cost basis of loan modifications made to borrowers experiencing financial difficulty during the three and six months ended June 30, 2024 (in thousands):
|  | For the three months ended June 30, 2024
|  | Term Extension |  | Interest Rate Reduction |  | Interest Rate Reduction and Term Extension |  | % of Total Class of Loans
Commercial loans |  | $ | — |  |  | — |  | 1,609 |  |  | 0.03 | %
Total gross loans |  | $ | — |  |  | — |  | 1,609 |  |  | 0.01 | %
|  | For the six months ended June 30, 2024
|  | Term Extension |  | Interest Rate Reduction |  | Interest Rate Reduction and Term Extension |  | % of Total Class of Loans
Commercial loans |  | $ | — |  |  | — |  | 8,796 |  |  | 0.19 | %
Total gross loans |  | $ | — |  |  | — |  | 8,796 |  |  | 0.05 | %
The following table presents the financial effect of loan modifications made to borrowers experiencing financial difficulty during the three months ended June 30, 2025 (in thousands):
|  | Weighted Average Months of Term Extension |  | Weighted Average Rate Change
Mortgage loans: |  |  |  |
Commercial |  | 33 |  | 0.13 | %
Total mortgage loans |  | 33 |  | 0.13 | %
Commercial loans |  | 20 |  | — | %
Total gross loans |  | 23 |  | 0.08 | %
The following table presents the financial effect of loan modifications made to borrowers experiencing financial difficulty during the six months ended June 30, 2025 (in thousands):
|  | Weighted Average Months of Term Extension |  | Weighted Average Rate Change
Mortgage loans: |  |  |  |
Commercial |  | 18 |  | 0.44 | %
Total mortgage loans |  | 18 |  | 0.44 | %
Commercial loans |  | 12 |  | (0.20) | %
Total gross loans |  | 15 |  | 0.08 | %
The following table presents the financial effect of loan modifications made to borrowers experiencing financial difficulty during the three months ended June 30, 2024 (in thousands):
|  | Weighted Average Months of Term Extension |  | Weighted Average Rate Change
Commercial loans |  | 3 |  | 1.25 | %
Total gross loans |  | 3 |  | 1.25 | %
The following table presents the financial effect of loan modifications made to borrowers experiencing financial difficulty during the six months ended June 30, 2024 (in thousands):
|  | Weighted Average Months of Term Extension |  | Weighted Average Rate Change
Commercial loans |  | 1 |  | 1.63 | %
Total gross loans |  | 1 |  | 1.63 | %
There were no loan modifications made to borrowers experiencing financial difficulty that subsequently defaulted during the three and six months ended June 30, 2025 and June 30, 2024, respectively. The following table presents the aging analysis of loan modifications made to borrowers experiencing financial difficulty during the twelve months ended June 30, 2025 (in thousands):
|  | Current |  | 30-59 Days Past Due |  | 60-89 Days Past Due |  | 90 days or more Past Due |  | Non- Accrual |  | Total
Mortgage loans: |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  | $ | 20,445 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 20,445 |
Multi-family |  | 736 |  |  | — |  |  | — |  |  | — |  |  | 85 |  |  | 821 |
Total mortgage loans |  | 21,182 |  |  | — |  |  | — |  |  | — |  |  | 85 |  |  | 21,267 |
Commercial loans |  | 2,058 |  |  | — |  |  | — |  |  | — |  |  | 158 |  |  | 2,216 |
Total gross loans |  | $ | 23,240 |  |  | — |  |  | — |  |  | — |  |  | 243 |  |  | 23,483 |
The following table presents the aging analysis of loan modifications made to borrowers experiencing financial difficulty during the twelve months ended June 30, 2024 (in thousands):
|  | Current |  | 30-59 Days Past Due |  | 60-89 Days Past Due |  | 90 days or more Past Due |  | Non- Accrual |  | Total
Commercial loans |  | $ | 8,796 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | $ | 8,796 |
Total gross loans |  | $ | 8,796 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | $ | 8,796 |
Loans acquired by the Company that experienced more-than-insignificant deterioration in credit quality after origination, are classified as Purchase Credit Deteriorated ("PCD") loans. As of June 30, 2025, the balance of PCD loans totaled $559.4 million with a related allowance for credit losses of $13.9 million. The balance of PCD loans as of December 31, 2024 was $620.4 million with a related allowance for credit losses of $15.2 million. In connection with the Lakeland merger, the Company evaluated acquired loans for deterioration in credit quality based on any of, but not limited to, the following: (1) non-accrual status; (2) modifications for borrowers experiencing financial difficulty; (3) risk ratings of watch, special mention, substandard or doubtful; and (4) loans greater than 59 days past due. At the acquisition date, an estimate of expected credit losses is made for groups of PCD loans with similar risk characteristics and individual PCD loans without similar risk characteristics. Additionally for PCD loans, an allowance for credit losses was calculated using management's best estimate of projected losses over the remaining life of the loans. This represents the portion of the loan balances that has been deemed uncollectible based on the Company’s expectations of future cash flows for each respective PCD loan pool, given the outlook and forecasts inclusive of related fiscal and regulatory interventions. The expected lifetime losses were calculated using historical losses observed at the Bank, Lakeland and peer banks. A $17.2 million allowance for credit losses was recorded on PCD loans acquired from Lakeland. The interest rate fair value adjustment related to PCD loans will be substantially recognized as interest income on a level yield or straight line method over the expected life of the loans. The table below is a summary of the PCD loans that were acquired from Lakeland as of the closing date (in thousands):
Gross amortized cost basis as of May 16, 2024 |  | $ | 564,147 |
Charge-offs on PCD Loans at acquisition |  | (4,364) |
Interest component of expected cash flows (accretable difference) |  | (33,365) |
Allowance for credit losses on PCD loans |  | (17,188) |
Net PCD loans |  | $ | 509,230 |
Management utilizes an internal nine-point risk rating system to summarize its loan portfolio into categories with similar risk characteristics. Loans deemed to be “acceptable quality” are rated 1 through 4, with a rating of 1 established for loans with minimal risk. Loans that are deemed to be of “questionable quality” are rated 5 (watch) or 6 (special mention). Loans with adverse classifications (substandard, doubtful or loss) are rated 7, 8 or 9, respectively. Commercial mortgage, commercial, multi-family and construction loans are rated individually, and each lending officer is responsible for risk rating loans in their portfolio. These risk ratings are then reviewed by the department manager and/or the Chief Lending Officer and by the Credit Department. The risk ratings are also reviewed periodically through loan review examinations which are currently performed by independent third-parties. Reports by the independent third-parties are presented to the Audit Committee of the Board of Directors. The following table summarizes the Company's gross loans held for investment by year of origination and internally assigned credit grades as of June 30, 2025 and December 31, 2024 (in thousands):
|  | Gross Loans Held for Investment by Year of Origination as of June 30, 2025
|  | 2025 |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | Prior to 2021 |  | Revolving Loans |  | Revolving loans to term loans |  | Total Loans
Commercial Mortgage |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Special mention |  | $ | 6,013 |  |  | — |  |  | 3,647 |  |  | 20,532 |  |  | 50,197 |  |  | 33,308 |  |  | 138 |  |  | — |  |  | 113,835 |
Substandard |  | 7,890 |  |  | — |  |  | 67 |  |  | 7,710 |  |  | 11,573 |  |  | 77,765 |  |  | 4,322 |  |  | — |  |  | 109,327 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Loss |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total criticized and classified |  | 13,903 |  |  | — |  |  | 3,714 |  |  | 28,242 |  |  | 61,770 |  |  | 111,073 |  |  | 4,460 |  |  | — |  |  | 223,162 |
Pass/Watch |  | 317,137 |  |  | 336,705 |  |  | 916,376 |  |  | 1,554,791 |  |  | 932,579 |  |  | 2,838,927 |  |  | 184,253 |  |  | 9,974 |  |  | 7,090,742 |
Total Commercial Mortgage |  | $ | 331,040 |  |  | 336,705 |  |  | 920,090 |  |  | 1,583,033 |  |  | 994,349 |  |  | 2,950,000 |  |  | 188,713 |  |  | 9,974 |  |  | 7,313,904 |
Multi-family |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Special mention |  | $ | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 7,696 |  |  | — |  |  | — |  |  | 7,696 |
Substandard |  | — |  |  | — |  |  | 1,501 |  |  | 505 |  |  | 1,043 |  |  | 6,323 |  |  | — |  |  | — |  |  | 9,372 |
Doubtful |  | — |  |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Loss |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total criticized and classified |  | — |  |  | — |  |  | 1,501 |  |  | 505 |  |  | 1,043 |  |  | 14,019 |  |  | — |  |  | — |  |  | 17,068 |
Pass/Watch |  | 253,106 |  |  | 327,192 |  |  | 477,281 |  |  | 722,878 |  |  | 377,553 |  |  | 1,326,242 |  |  | 14,652 |  |  | 1,537 |  |  | 3,500,441 |
Total Multi-Family |  | $ | 253,106 |  |  | 327,192 |  |  | 478,782 |  |  | 723,383 |  |  | 378,596 |  |  | 1,340,261 |  |  | 14,652 |  |  | 1,537 |  |  | 3,517,509 |
Construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Special mention |  | $ | — |  |  | — |  |  | — |  |  | 6,639 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 6,639 |
Substandard |  | — |  |  | — |  |  | 12,078 |  |  | — |  |  | 6,824 |  |  | — |  |  | — |  |  | — |  |  | 18,902 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Loss |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total criticized and classified |  | — |  |  | — |  |  | 12,078 |  |  | 6,639 |  |  | 6,824 |  |  | — |  |  | — |  |  | — |  |  | 25,541 |
Pass/Watch |  | 22,509 |  |  | 178,694 |  |  | 274,248 |  |  | 172,143 |  |  | 77,077 |  |  | 1,702 |  |  | — |  |  | — |  |  | 726,373 |
Total Construction |  | $ | 22,509 |  |  | 178,694 |  |  | 286,326 |  |  | 178,782 |  |  | 83,901 |  |  | 1,702 |  |  | — |  |  | — |  |  | 751,914 |
Residential (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Special mention |  | $ | — |  |  | — |  |  | 1,847 |  |  | 547 |  |  | — |  |  | 1,423 |  |  | — |  |  | — |  |  | 3,817 |
Substandard |  | — |  |  | 553 |  |  | 2,496 |  |  | 1,148 |  |  | 1,100 |  |  | 1,912 |  |  | — |  |  | — |  |  | 7,209 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Loss |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total criticized and classified |  | — |  |  | 553 |  |  | 4,343 |  |  | 1,695 |  |  | 1,100 |  |  | 3,335 |  |  | — |  |  | — |  |  | 11,026 |
Pass/Watch |  | 58,265 |  |  | 131,691 |  |  | 336,883 |  |  | 412,451 |  |  | 323,596 |  |  | 711,443 |  |  | — |  |  | — |  |  | 1,974,329 |
Total Residential |  | $ | 58,265 |  |  | 132,244 |  |  | 341,226 |  |  | 414,146 |  |  | 324,696 |  |  | 714,778 |  |  | — |  |  | — |  |  | 1,985,355 |
Total Mortgage |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Gross Loans Held for Investment by Year of Origination as of June 30, 2025
|  | 2025 |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | Prior to 2021 |  | Revolving Loans |  | Revolving loans to term loans |  | Total Loans
Special mention |  | $ | 6,013 |  |  | — |  |  | 5,494 |  |  | 27,718 |  |  | 50,197 |  |  | 42,427 |  |  | 138 |  |  | — |  |  | 131,987 |
Substandard |  | 7,890 |  |  | 553 |  |  | 16,142 |  |  | 9,363 |  |  | 20,540 |  |  | 86,000 |  |  | 4,322 |  |  | — |  |  | 144,810 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Loss |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total criticized and classified |  | 13,903 |  |  | 553 |  |  | 21,636 |  |  | 37,081 |  |  | 70,737 |  |  | 128,427 |  |  | 4,460 |  |  | — |  |  | 276,797 |
Pass/Watch |  | 651,017 |  |  | 974,282 |  |  | 2,004,788 |  |  | 2,862,263 |  |  | 1,710,805 |  |  | 4,878,314 |  |  | 198,905 |  |  | 11,511 |  |  | 13,291,885 |
Total Mortgage |  | $ | 664,920 |  |  | 974,835 |  |  | 2,026,424 |  |  | 2,899,344 |  |  | 1,781,542 |  |  | 5,006,741 |  |  | 203,365 |  |  | 11,511 |  |  | 13,568,682 |
Commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Special mention |  | $ | 179 |  |  | 542 |  |  | 11,429 |  |  | 4,785 |  |  | 9,987 |  |  | 55,071 |  |  | 25,448 |  |  | 1,087 |  |  | 108,528 |
Substandard |  | — |  |  | 162 |  |  | 4,767 |  |  | 70,791 |  |  | 27,623 |  |  | 44,767 |  |  | 29,547 |  |  | 2,851 |  |  | 180,508 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Loss |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total criticized and classified |  | 179 |  |  | 704 |  |  | 16,196 |  |  | 75,576 |  |  | 37,610 |  |  | 99,838 |  |  | 54,995 |  |  | 3,938 |  |  | 289,036 |
Pass/Watch |  | 340,052 |  |  | 675,436 |  |  | 365,161 |  |  | 696,796 |  |  | 351,234 |  |  | 1,028,362 |  |  | 1,118,497 |  |  | 64,448 |  |  | 4,639,986 |
Total Commercial |  | $ | 340,231 |  |  | 676,140 |  |  | 381,357 |  |  | 772,372 |  |  | 388,844 |  |  | 1,128,200 |  |  | 1,173,492 |  |  | 68,386 |  |  | 4,929,022 |
Consumer (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Special mention |  | $ | — |  |  | 33 |  |  | — |  |  | — |  |  | — |  |  | 94 |  |  | 591 |  |  | 51 |  |  | 769 |
Substandard |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 519 |  |  | 764 |  |  | 57 |  |  | 1,340 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Loss |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total criticized and classified |  | — |  |  | 33 |  |  | — |  |  | — |  |  | — |  |  | 613 |  |  | 1,355 |  |  | 108 |  |  | 2,109 |
Pass/Watch |  | 18,592 |  |  | 29,944 |  |  | 40,922 |  |  | 55,435 |  |  | 36,696 |  |  | 97,096 |  |  | 320,552 |  |  | 15,844 |  |  | 615,081 |
Total Consumer |  | $ | 18,592 |  |  | 29,977 |  |  | 40,922 |  |  | 55,435 |  |  | 36,696 |  |  | 97,709 |  |  | 321,907 |  |  | 15,952 |  |  | 617,190 |
Total Loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Special mention |  | $ | 6,192 |  |  | 575 |  |  | 16,923 |  |  | 32,503 |  |  | 60,184 |  |  | 97,592 |  |  | 26,177 |  |  | 1,138 |  |  | 241,284 |
Substandard |  | 7,890 |  |  | 715 |  |  | 20,909 |  |  | 80,154 |  |  | 48,163 |  |  | 131,286 |  |  | 34,633 |  |  | 2,908 |  |  | 326,658 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Loss |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total criticized and classified |  | 14,082 |  |  | 1,290 |  |  | 37,832 |  |  | 112,657 |  |  | 108,347 |  |  | 228,878 |  |  | 60,810 |  |  | 4,046 |  |  | 567,942 |
Pass/Watch |  | 1,009,661 |  |  | 1,679,662 |  |  | 2,410,871 |  |  | 3,614,494 |  |  | 2,098,735 |  |  | 6,003,772 |  |  | 1,637,954 |  |  | 91,803 |  |  | 18,546,952 |
Total Gross Loans |  | $ | 1,023,743 |  |  | 1,680,952 |  |  | 2,448,703 |  |  | 3,727,151 |  |  | 2,207,082 |  |  | 6,232,650 |  |  | 1,698,764 |  |  | 95,849 |  |  | 19,114,894 |
(1) For residential and consumer loans, the Company assigns internal credit grades based on the delinquency status of each loan.
|  | Gross Loans Held for Investment by Year of Origination as of December 31, 2024
|  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | Prior to 2020 |  | Revolving Loans |  | Revolving loans to term loans |  | Total Loans
Commercial Mortgage |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Special mention |  | $ | 262 |  |  | 4,377 |  |  | 10,150 |  |  | 9,127 |  |  | 14,569 |  |  | 69,525 |  |  | 4,461 |  |  | — |  |  | 112,471 |
|  | Gross Loans Held for Investment by Year of Origination as of December 31, 2024
|  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | Prior to 2020 |  | Revolving Loans |  | Revolving loans to term loans |  | Total Loans
Substandard |  | 3,044 |  |  | 73 |  |  | 10,952 |  |  | — |  |  | 21,051 |  |  | 50,870 |  |  | — |  |  | — |  |  | 85,990 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Loss |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total criticized and classified |  | 3,306 |  |  | 4,450 |  |  | 21,102 |  |  | 9,127 |  |  | 35,620 |  |  | 120,395 |  |  | 4,461 |  |  | — |  |  | 198,461 |
Pass/Watch |  | 417,991 |  |  | 904,924 |  |  | 1,623,911 |  |  | 997,658 |  |  | 884,295 |  |  | 2,063,646 |  |  | 126,297 |  |  | 10,895 |  |  | 7,029,617 |
Total Commercial Mortgage |  | $ | 421,297 |  |  | 909,374 |  |  | 1,645,013 |  |  | 1,006,785 |  |  | 919,915 |  |  | 2,184,041 |  |  | 130,758 |  |  | 10,895 |  |  | 7,228,078 |
Multi-family |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Special mention |  | $ | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 16,472 |  |  | — |  |  | — |  |  | 16,472 |
Substandard |  | — |  |  | 1,560 |  |  | — |  |  | 1,043 |  |  | — |  |  | 5,439 |  |  | — |  |  | — |  |  | 8,042 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Loss |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total criticized and classified |  | — |  |  | 1,560 |  |  | — |  |  | 1,043 |  |  | — |  |  | 21,911 |  |  | — |  |  | — |  |  | 24,514 |
Pass/Watch |  | 363,254 |  |  | 478,184 |  |  | 701,811 |  |  | 460,979 |  |  | 460,161 |  |  | 882,291 |  |  | 10,181 |  |  | 1,558 |  |  | 3,358,419 |
Total Multi-Family |  | $ | 363,254 |  |  | 479,744 |  |  | 701,811 |  |  | 462,022 |  |  | 460,161 |  |  | 904,202 |  |  | 10,181 |  |  | 1,558 |  |  | 3,382,933 |
Construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Special mention |  | $ | — |  |  | 1,064 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,064 |
Substandard |  | — |  |  | — |  |  | — |  |  | 12,346 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 12,346 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Loss |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total criticized and classified |  | — |  |  | 1,064 |  |  | — |  |  | 12,346 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 13,410 |
Pass/Watch |  | 104,009 |  |  | 309,034 |  |  | 260,190 |  |  | 110,100 |  |  | 24,017 |  |  | 2,743 |  |  | — |  |  | — |  |  | 810,093 |
Total Construction |  | $ | 104,009 |  |  | 310,098 |  |  | 260,190 |  |  | 122,446 |  |  | 24,017 |  |  | 2,743 |  |  | — |  |  | — |  |  | 823,503 |
Residential (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Special mention |  | $ | 403 |  |  | 1,356 |  |  | 344 |  |  | — |  |  | — |  |  | 2,836 |  |  | — |  |  | — |  |  | 4,939 |
Substandard |  | — |  |  | 764 |  |  | 689 |  |  | 1,119 |  |  | — |  |  | 1,963 |  |  | — |  |  | — |  |  | 4,535 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Loss |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total criticized and classified |  | 403 |  |  | 2,120 |  |  | 1,033 |  |  | 1,119 |  |  | — |  |  | 4,799 |  |  | — |  |  | — |  |  | 9,474 |
Pass/Watch |  | 140,382 |  |  | 348,493 |  |  | 428,269 |  |  | 333,150 |  |  | 276,703 |  |  | 474,166 |  |  | — |  |  | — |  |  | 2,001,163 |
Total Residential |  | $ | 140,785 |  |  | 350,613 |  |  | 429,302 |  |  | 334,269 |  |  | 276,703 |  |  | 478,965 |  |  | — |  |  | — |  |  | 2,010,637 |
Total Mortgage |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Special mention |  | $ | 665 |  |  | 6,797 |  |  | 10,494 |  |  | 9,127 |  |  | 14,569 |  |  | 88,833 |  |  | 4,461 |  |  | — |  |  | 134,946 |
Substandard |  | 3,044 |  |  | 2,397 |  |  | 11,641 |  |  | 14,508 |  |  | 21,051 |  |  | 58,272 |  |  | — |  |  | — |  |  | 110,913 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Loss |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
|  | Gross Loans Held for Investment by Year of Origination as of December 31, 2024
|  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | Prior to 2020 |  | Revolving Loans |  | Revolving loans to term loans |  | Total Loans
Total criticized and classified |  | 3,709 |  |  | 9,194 |  |  | 22,135 |  |  | 23,635 |  |  | 35,620 |  |  | 147,105 |  |  | 4,461 |  |  | — |  |  | 245,859 |
Pass/Watch |  | 1,025,636 |  |  | 2,040,635 |  |  | 3,014,181 |  |  | 1,901,887 |  |  | 1,645,176 |  |  | 3,422,846 |  |  | 136,478 |  |  | 12,453 |  |  | 13,199,292 |
Total Mortgage |  | $ | 1,029,345 |  |  | 2,049,829 |  |  | 3,036,316 |  |  | 1,925,522 |  |  | 1,680,796 |  |  | 3,569,951 |  |  | 140,939 |  |  | 12,453 |  |  | 13,445,151 |
Commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Special mention |  | $ | 298 |  |  | 2,612 |  |  | 3,084 |  |  | 5,804 |  |  | 9,493 |  |  | 26,924 |  |  | 20,030 |  |  | 4,761 |  |  | 73,006 |
Substandard |  | 6,887 |  |  | 5,023 |  |  | 62,028 |  |  | 28,208 |  |  | 23,130 |  |  | 21,170 |  |  | 31,787 |  |  | 1,746 |  |  | 179,979 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Loss |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total criticized and classified |  | 7,185 |  |  | 7,635 |  |  | 65,112 |  |  | 34,012 |  |  | 32,623 |  |  | 48,094 |  |  | 51,817 |  |  | 6,507 |  |  | 252,985 |
Pass/Watch |  | 747,299 |  |  | 427,445 |  |  | 697,899 |  |  | 390,770 |  |  | 256,421 |  |  | 678,154 |  |  | 1,089,408 |  |  | 68,219 |  |  | 4,355,615 |
Total Commercial |  | $ | 754,484 |  |  | 435,080 |  |  | 763,011 |  |  | 424,782 |  |  | 289,044 |  |  | 726,248 |  |  | 1,141,225 |  |  | 74,726 |  |  | 4,608,600 |
Consumer (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Special mention |  | $ | — |  |  | — |  |  | 3 |  |  | — |  |  | 124 |  |  | 109 |  |  | 725 |  |  | — |  |  | 961 |
Substandard |  | — |  |  | 95 |  |  | — |  |  | 9 |  |  | — |  |  | 321 |  |  | 950 |  |  | — |  |  | 1,375 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Loss |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total criticized and classified |  | — |  |  | 95 |  |  | 3 |  |  | 9 |  |  | 124 |  |  | 430 |  |  | 1,675 |  |  | — |  |  | 2,336 |
Pass/Watch |  | 31,975 |  |  | 45,605 |  |  | 59,669 |  |  | 40,080 |  |  | 9,433 |  |  | 83,728 |  |  | 327,107 |  |  | 13,886 |  |  | 611,483 |
Total Consumer |  | $ | 31,975 |  |  | 45,700 |  |  | 59,672 |  |  | 40,089 |  |  | 9,557 |  |  | 84,158 |  |  | 328,782 |  |  | 13,886 |  |  | 613,819 |
Total Loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Special mention |  | $ | 963 |  |  | 9,409 |  |  | 13,581 |  |  | 14,931 |  |  | 24,186 |  |  | 115,866 |  |  | 25,216 |  |  | 4,761 |  |  | 208,913 |
Substandard |  | 9,931 |  |  | 7,515 |  |  | 73,669 |  |  | 42,725 |  |  | 44,181 |  |  | 79,763 |  |  | 32,737 |  |  | 1,746 |  |  | 292,267 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Loss |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total criticized and classified |  | 10,894 |  |  | 16,924 |  |  | 87,250 |  |  | 57,656 |  |  | 68,367 |  |  | 195,629 |  |  | 57,953 |  |  | 6,507 |  |  | 501,180 |
Pass/Watch |  | 1,804,910 |  |  | 2,513,685 |  |  | 3,771,749 |  |  | 2,332,737 |  |  | 1,911,030 |  |  | 4,184,728 |  |  | 1,552,993 |  |  | 94,558 |  |  | 18,166,390 |
Total Gross Loans |  | $ | 1,815,804 |  |  | 2,530,609 |  |  | 3,858,999 |  |  | 2,390,393 |  |  | 1,979,397 |  |  | 4,380,357 |  |  | 1,610,946 |  |  | 101,065 |  |  | 18,667,570 |
(1) For residential and consumer loans, the Company assigns internal credit grades based on the delinquency status of each loan.

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- Definition The entire disclosure for claims held for amounts due to 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 -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/310-10/tableOfContent Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 835 -SubTopic 30 -Name Accounting Standards Codification -Section 45 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482925/835-30-45-2 + Details
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- References No definition available. + Details
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