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Loans Receivable and Allowance for Credit Losses (Tables)
9 Months Ended
Sep. 30, 2022
Receivables [Abstract]  
Summary of Loans Receivable by Major Category
The following is a summary of loans receivable by major category:
September 30, 2022December 31, 2021
(Dollars in thousands)
Loan portfolio composition
Real estate loans:
Residential
$75,488 $69,199 
Commercial
9,216,194 8,816,080 
Construction
213,211 220,652 
Total real estate loans
9,504,893 9,105,931 
Commercial business *
5,124,421 4,208,674 
Residential mortgage823,809 579,626 
Consumer and other38,064 58,512 
Loans receivable15,491,187 13,952,743 
Allowance for credit losses(160,561)(140,550)
Loans receivable, net of allowance for credit losses$15,330,626 $13,812,193 
__________________________________
* Commercial business loans as of September 30, 2022 and December 31, 2021 include $5.9 million and $228.1 million, respectively, in SBA Paycheck Protection Program loans
Allowance for Credit Losses by Portfolio Segment
The tables below detail the activity in the allowance for credit losses (“ACL”) by portfolio segment for the three and nine months ended September 30, 2022 and 2021. Recoveries for the nine months ended September 30, 2022 included $17.3 million in recoveries from a single lending relationship that had $29.6 million in charge-offs in the third quarter of 2021.
Real EstateCommercial BusinessResidential MortgageConsumer and OtherTotal
(Dollars in thousands)
Three Months Ended September 30, 2022
Balance, beginning of period$99,824 $44,852 $6,079 $825 $151,580 
Provision (credit) for credit losses109 8,276 837 (22)9,200 
Loans charged off(185)(262)(22)(81)(550)
Recoveries of charge offs176 147 — 331 
Balance, end of period$99,924 $53,013 $6,894 $730 $160,561 
Nine Months Ended September 30, 2022
Balance, beginning of period$108,440 $27,811 $3,316 $983 $140,550 
Provision (credit) for credit losses(25,433)23,327 3,600 (94)1,400 
Loans charged off(1,936)(611)(22)(196)(2,765)
Recoveries of charge offs18,853 2,486 — 37 21,376 
Balance, end of period$99,924 $53,013 $6,894 $730 $160,561 

Real EstateCommercial BusinessResidential MortgageConsumer and OtherTotal
(Dollars in thousands)
Three Months Ended September 30, 2021
Balance, beginning of period$155,253 $29,500 $3,612 $1,087 $189,452 
Provision (credit) for credit losses(9,142)(1,011)— 153 (10,000)
Loans charged off(41,655)(1,895)(923)(110)(44,583)
Recoveries of charge offs1,113 778 — 14 1,905 
Balance, end of period$105,569 $27,372 $2,689 $1,144 $136,774 
Nine Months Ended September 30, 2021
Balance, beginning of period$162,196 $39,155 $4,227 $1,163 $206,741 
Provision (credit) for credit losses(2,570)(10,565)(615)50 (13,700)
Loans charged off(56,645)(3,077)(923)(251)(60,896)
Recoveries of charge offs2,588 1,859 — 182 4,629 
Balance, end of period$105,569 $27,372 $2,689 $1,144 $136,774 
The following tables break out the allowance for credit losses and loan balance by measurement methodology at September 30, 2022 and December 31, 2021:
September 30, 2022
Real EstateCommercial BusinessResidential MortgageConsumer and OtherTotal
(Dollars in thousands)
Allowance for credit losses:
Individually evaluated$2,956 $4,207 $15 $21 $7,199 
Collectively evaluated96,968 48,806 6,879 709 153,362 
Total$99,924 $53,013 $6,894 $730 $160,561 
Loans outstanding:
Individually evaluated$62,936 $17,553 $8,731 $429 $89,649 
Collectively evaluated9,441,957 5,106,868 815,078 37,635 15,401,538 
Total$9,504,893 $5,124,421 $823,809 $38,064 $15,491,187 

December 31, 2021
Real EstateCommercial BusinessResidential MortgageConsumer and OtherTotal
(Dollars in thousands)
Allowance for credit losses:
Individually evaluated$2,025 $3,056 $11 $23 $5,115 
Collectively evaluated106,415 24,755 3,305 960 135,435 
Total$108,440 $27,811 $3,316 $983 $140,550 
Loans outstanding:
Individually evaluated$83,347 $19,407 $3,470 $409 $106,633 
Collectively evaluated9,022,584 4,189,267 576,156 58,103 13,846,110 
Total$9,105,931 $4,208,674 $579,626 $58,512 $13,952,743 
The following tables present a breakdown of loans by recorded ACL, broken out by loans evaluated individually and collectively at September 30, 2022 and December 31, 2021:
 September 30, 2022
Real Estate –
Residential
Real Estate –
Commercial
Real Estate –
Construction
Commercial
Business
Residential
Mortgage
Consumer
and Other
Total
 (Dollars in thousands)
Individually evaluated loans
$— $62,936 $— $17,553 $8,731 $429 $89,649 
ACL on individually evaluated loans$— $2,956 $— $4,207 $15 $21 $7,199 
Individually evaluated loans ACL coverageN/A4.70 %N/A23.97 %0.17 %4.90 %8.03 %
Collectively evaluated loans$75,488 $9,153,258 $213,211 $5,106,868 $815,078 $37,635 $15,401,538 
ACL on collectively evaluated loans$850 $94,579 $1,539 $48,806 $6,879 $709 $153,362 
Collectively evaluated loans ACL coverage1.13 %1.03 %0.72 %0.96 %0.84 %1.88 %1.00 %
Total loans$75,488 $9,216,194 $213,211 $5,124,421 $823,809 $38,064 $15,491,187 
Total ACL$850 $97,535 $1,539 $53,013 $6,894 $730 $160,561 
Total ACL to total loans1.13 %1.06 %0.72 %1.03 %0.84 %1.92 %1.04 %

 
December 31, 2021
 
Real Estate –
Residential
Real Estate –
Commercial
Real Estate –
Construction
Commercial
Business
Residential
Mortgage
Consumer
and Other
Total
 
(Dollars in thousands)
Individually evaluated loans
$— $83,347 $— $19,407 $3,470 $409 $106,633 
ACL on individually evaluated loans$— $2,025 $— $3,056 $11 $23 $5,115 
Individually evaluated loans ACL coverageN/A2.43 %N/A15.75 %0.32 %5.62 %4.80 %
Collectively evaluated loans$69,199 $8,732,733 $220,652 $4,189,267 $576,156 $58,103 $13,846,110 
ACL on collectively evaluated loans$729 $104,145 $1,541 $24,755 $3,305 $960 $135,435 
Collectively evaluated loans ACL coverage1.05 %1.19 %0.70 %0.59 %0.57 %1.65 %0.98 %
Total loans$69,199 $8,816,080 $220,652 $4,208,674 $579,626 $58,512 $13,952,743 
Total ACL$729 $106,170 $1,541 $27,811 $3,316 $983 $140,550 
Total ACL to total loans1.05 %1.20 %0.70 %0.66 %0.57 %1.68 %1.01 %
Schedule of Nonaccrual Loans and Loans Past Due 90 or More Days And Still on Accrual Status
The tables below represent the amortized cost of nonaccrual loans and loans past due 90 or more days and still on accrual status by class of loans and broken out by loans with a recorded ACL and those without a recorded ACL as of September 30, 2022 and December 31, 2021.
September 30, 2022
Nonaccrual with No ACLNonaccrual with an ACL
Total Nonaccrual (1)
Accruing Loans Past Due 90 or More Days
(Dollars in thousands)
Real estate – residential$— $— $— $— 
Real estate – commercial
Retail20,546 4,687 25,233 — 
Hotel & motel5,815 4,062 9,877 4,618 
Gas station & car wash2,847 1,011 3,858 — 
Mixed use781 3,258 4,039 — 
Industrial & warehouse129 919 1,048 — 
Other1,830 1,922 3,752 — 
Real estate – construction— — — — 
Commercial business1,625 6,050 7,675 419 
Residential mortgage5,967 2,764 8,731 — 
Consumer and other— 358 358 269 
Total$39,540 $25,031 $64,571 $5,306 
December 31, 2021
Nonaccrual with No ACLNonaccrual with an ACL
Total Nonaccrual (1)
Accruing Loans Past Due 90 or More Days
(Dollars in thousands)
Real estate – residential$— $— $— $— 
Real estate – commercial
Retail7,586 2,604 10,190 — 
Hotel & motel5,471 6,564 12,035 — 
Gas station & car wash575 1,267 1,842 — 
Mixed use5,307 1,412 6,719 — 
Industrial & warehouse687 1,897 2,584 — 
Other1,233 5,153 6,386 215 
Real estate – construction— — — — 
Commercial business4,726 6,299 11,025 1,494 
Residential mortgage275 3,195 3,470 — 
Consumer and other— 365 365 422 
Total$25,860 $28,756 $54,616 $2,131 
__________________________________
(1)    Total nonaccrual loans exclude the guaranteed portion of SBA loans that are in liquidation totaling $9.9 million and $19.5 million, at September 30, 2022 and December 31, 2021, respectively.
Amortized Cost Basis of Collateral-Dependent Loans
The following table presents the amortized cost of collateral dependent loans as of September 30, 2022 and December 31, 2021:
September 30, 2022December 31, 2021
Real Estate CollateralOther CollateralTotalReal Estate CollateralOther CollateralTotal
(Dollars in thousands)
Real estate – residential$— $— $— $— $— $— 
Real estate – commercial47,272 — 47,272 65,590 — 65,590 
Real estate – construction— — — — — — 
Commercial business1,626 5,795 7,421 1,767 6,615 8,382 
Residential mortgage5,967 — 5,967 — — — 
Consumer and other— — — — — — 
Total$54,865 $5,795 $60,660 $67,357 $6,615 $73,972 
Aging of Past Due Loans
The following table presents the amortized cost of past due loans, including nonaccrual loans past due 30 or more days, by the number of days past due as of September 30, 2022 and December 31, 2021 by class of loans:
 September 30, 2022December 31, 2021
 30-59 Days
Past Due 
60-89 Days 
Past Due
90 or More Days
Past Due 
Total
Past Due
30-59 Days
Past Due 
60-89 Days 
Past Due
90 or More Days
Past Due 
Total
Past Due
(Dollars in thousands)
Real estate – residential$— $— $— $— $— $— $— $— 
Real estate – commercial
Retail
5,086 — 5,412 10,498 1,250 927 9,167 11,344 
Hotel & motel
222 4,708 8,456 13,386 9,320 4,148 4,760 18,228 
Gas station & car wash
— — 1,093 1,093 575 — 832 1,407 
Mixed use
— — 3,659 3,659 1,124 — 5,625 6,749 
Industrial & warehouse
32 86 408 526 247 — 785 1,032 
Other
— 236 2,021 2,257 1,198 6,522 3,185 10,905 
Real estate – construction— — — — — — — — 
Commercial business6,070 958 3,132 10,160 1,792 2,362 6,482 10,636 
Residential mortgage1,764 241 4,795 6,800 14,177 — 3,099 17,276 
Consumer and other273 46 627 946 59 21 787 867 
Total Past Due$13,447 $6,275 $29,603 $49,325 $29,742 $13,980 $34,722 $78,444 
Financing Receivable Credit Quality Indicators
The following table presents the amortized cost basis of loans receivable by class, credit quality indicator, and year of origination as of September 30, 2022 and December 31, 2021.
September 30, 2022
Term Loan by Origination YearRevolving LoansTotal
20222021202020192018Prior
(Dollars in thousands)
Real Estate - Residential
Pass / not rated$14,306 $25,324 $9,743 $9,085 $3,990 $7,146 $4,670 $74,264 
Special mention— — — — — — — — 
Substandard— — — — 662 562 — 1,224 
Doubtful / loss— — — — — — — — 
Subtotal$14,306 $25,324 $9,743 $9,085 $4,652 $7,708 $4,670 $75,488 
Real Estate - Commercial
Pass / not rated$2,083,073 $2,195,049 $1,328,885 $1,055,329 $1,039,822 $1,272,491 $93,323 $9,067,972 
Special mention— 11,640 1,714 — 4,529 3,871 202 21,956 
Substandard1,017 8,716 2,737 19,041 21,684 72,794 277 126,266 
Doubtful / loss— — — — — — — — 
Subtotal$2,084,090 $2,215,405 $1,333,336 $1,074,370 $1,066,035 $1,349,156 $93,802 $9,216,194 
Real Estate - Construction
Pass / not rated$1,435 $38,964 $62,814 $35,424 $8,053 $4,607 $89 $151,386 
Special mention— — — — — 16,144 — 16,144 
Substandard45,681 — — — — — — 45,681 
Doubtful / loss— — — — — — — — 
Subtotal$47,116 $38,964 $62,814 $35,424 $8,053 $20,751 $89 $213,211 
Commercial Business
Pass / not rated$1,920,005 $1,214,335 $327,471 $351,613 $74,395 $103,832 $1,069,033 $5,060,684 
Special mention— 20,390 13,621 119 2,099 485 4,585 41,299 
Substandard252 3,214 6,324 2,229 1,206 5,268 3,945 22,438 
Doubtful / loss— — — — — — — — 
Subtotal$1,920,257 $1,237,939 $347,416 $353,961 $77,700 $109,585 $1,077,563 $5,124,421 
Residential Mortgage
Pass / not rated$346,195 $289,014 $1,395 $34,293 $65,713 $78,468 $— $815,078 
Special mention— — — — — — — — 
Substandard— — — 107 387 8,237 — 8,731 
Doubtful / loss— — — — — — — — 
Subtotal$346,195 $289,014 $1,395 $34,400 $66,100 $86,705 $— $823,809 
Consumer and Other
Pass / not rated$2,837 $1,047 $3,816 $1,355 $1,185 $7,026 $20,425 $37,691 
Special mention— — — — — — — — 
Substandard— — — — — 373 — 373 
Doubtful / loss— — — — — — — — 
Subtotal$2,837 $1,047 $3,816 $1,355 $1,185 $7,399 $20,425 $38,064 
Total Loans
Pass / not rated$4,367,851 $3,763,733 $1,734,124 $1,487,099 $1,193,158 $1,473,570 $1,187,540 $15,207,075 
Special mention— 32,030 15,335 119 6,628 20,500 4,787 79,399 
Substandard46,950 11,930 9,061 21,377 23,939 87,234 4,222 204,713 
Doubtful / loss— — — — — — — — 
Total$4,414,801 $3,807,693 $1,758,520 $1,508,595 $1,223,725 $1,581,304 $1,196,549 $15,491,187 
December 31, 2021
Term Loan by Origination YearRevolving LoansTotal
20212020201920182017Prior
(Dollars in thousands)
Real Estate - Residential
Pass / not rated$26,093 $10,471 $11,442 $4,952 $2,987 $7,260 $4,403 $67,608 
Special mention— — — 534 — 924 — 1,458 
Substandard— — — 133 — — — 133 
Doubtful / loss— — — — — — — — 
Subtotal$26,093 $10,471 $11,442 $5,619 $2,987 $8,184 $4,403 $69,199 
Real Estate - Commercial
Pass / not rated$2,451,662 $1,415,909 $1,252,851 $1,238,425 $883,790 $1,086,182 $89,501 $8,418,320 
Special mention5,553 8,882 39,567 20,203 27,204 73,090 5,970 180,469 
Substandard7,436 7,718 17,533 25,330 53,000 105,995 279 217,291 
Doubtful / loss— — — — — — — — 
Subtotal$2,464,651 $1,432,509 $1,309,951 $1,283,958 $963,994 $1,265,267 $95,750 $8,816,080 
Real Estate - Construction
Pass / not rated$16,545 $67,628 $32,044 $32,908 $8,292 $5,685 $89 $163,191 
Special mention— — — 45,996 5,074 6,391 — 57,461 
Substandard— — — — — — — — 
Doubtful / loss— — — — — — — — 
Subtotal$16,545 $67,628 $32,044 $78,904 $13,366 $12,076 $89 $220,652 
Commercial Business
Pass / not rated$1,755,104 $431,145 $461,460 $98,812 $53,629 $70,294 $1,299,372 $4,169,816 
Special mention1,379 523 4,780 2,897 550 5,083 2,594 17,806 
Substandard3,796 941 2,308 1,651 3,803 3,461 5,092 21,052 
Doubtful / loss— — — — — — — — 
Subtotal$1,760,279 $432,609 $468,548 $103,360 $57,982 $78,838 $1,307,058 $4,208,674 
Residential Mortgage
Pass / not rated$282,191 $1,420 $40,377 $112,743 $85,446 $53,979 $— $576,156 
Special mention— — — — — — — — 
Substandard275 — 128 394 541 2,132 — 3,470 
Doubtful / loss— — — — — — — — 
Subtotal$282,466 $1,420 $40,505 $113,137 $85,987 $56,111 $— $579,626 
Consumer and Other
Pass / not rated$19,203 $5,347 $1,783 $1,699 $1,769 $6,165 $22,095 $58,061 
Special mention— — — — — — — — 
Substandard— — — — — 451 — 451 
Doubtful / loss— — — — — — — — 
Subtotal$19,203 $5,347 $1,783 $1,699 $1,769 $6,616 $22,095 $58,512 
Total Loans
Pass / not rated$4,550,798 $1,931,920 $1,799,957 $1,489,539 $1,035,913 $1,229,565 $1,415,460 $13,453,152 
Special mention6,932 9,405 44,347 69,630 32,828 85,488 8,564 257,194 
Substandard11,507 8,659 19,969 27,508 57,344 112,039 5,371 242,397 
Doubtful / loss— — — — — — — — 
Total$4,569,237 $1,949,984 $1,864,273 $1,586,677 $1,126,085 $1,427,092 $1,429,395 $13,952,743 
For the three and nine months ended September 30, 2022 and the twelve months ended December 31, 2021, there were no revolving loans converted to term loans.
Loans Sold From Loans Held For Investment The breakdown of loans by type that were reclassified from held for investment to held for sale for the three and nine months ended September 30, 2022 and 2021 is presented in the following table:
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
Transfer of loans held for investment to held for sale(Dollars in thousands)
Real estate - commercial$36,704 $107,191 $192,190 $278,366 
Commercial business10,328 78,990 27,097 88,650 
Residential mortgage— 7,018 — 7,018 
Total$47,032 $193,199 $219,287 $374,034 
Troubled Debt Restructurings
A summary of the amortized cost of TDR loans on accrual and nonaccrual status by type of concession as of September 30, 2022 and December 31, 2021 is presented below:
September 30, 2022
TDR Loans on Accrual StatusTDR Loans on Nonaccrual StatusTotal TDRs
Real EstateCommercial BusinessResidential MortgageOtherReal EstateCommercial BusinessResidential MortgageOther
(Dollars in thousands)
Payment concession$5,410 $532 $— $15 $23,369 $267 $— $— $29,593 
Maturity / amortization concession
4,979 9,193 — 257 113 2,572 — 114 17,228 
Rate concession5,062 196 — — 100 1,401 — — 6,759 
Total$15,451 $9,921 $— $272 $23,582 $4,240 $— $114 $53,580 

December 31, 2021
TDR Loans on Accrual StatusTDR Loans on Nonaccrual StatusTotal
TDRs
Real EstateCommercial BusinessResidential MortgageOtherReal EstateCommercial BusinessResidential MortgageOther
(Dollars in thousands)
Payment concession$23,196 $790 $— $16 $7,533 $420 $— $— $31,955 
Maturity / amortization concession
15,449 7,284 — 183 269 3,109 — 117 26,411 
Rate concession5,161 339 — — 234 1,413 — — 7,147 
Total$43,806 $8,413 $— $199 $8,036 $4,942 $— $117 $65,513 
The following tables present the amortized cost of loans classified as TDR during the nine months ended September 30, 2022 and 2021 by class of loans. There were no loans classified as TDR during the three months ended September 30, 2022 and 2021.
Nine Months Ended September 30, 2022Nine Months Ended September 30, 2021
Number of LoansBalanceNumber of LoansBalance
(Dollars in thousands)
Real estate – residential— $— — $— 
Real estate – commercial
Retail— — 6,922 
Hotel & motel1,985 — — 
Gas station & car wash— — 575 
Mixed use— — 4,626 
Industrial & warehouse— — — — 
Other590 — — 
Real estate – construction— — — — 
Commercial business2,885 319 
Residential mortgage— — — — 
Consumer and other— — 53 
Total$5,460 14 $12,495 
Summary of Troubled Debt Restructurings with Subsequent Payment Default
The following tables present the amortized cost balance of loans modified as TDRs within the previous twelve months ended September 30, 2022 and 2021 that subsequently had payment defaults during the three and nine months ended September 30, 2022 and 2021:
Three Months Ended September 30, 2022Three Months Ended September 30, 2021
 Number of LoansBalanceNumber of LoansBalance
 (Dollars in thousands)
Real estate – residential— $— — $— 
Real estate – commercial  
Retail
— — 6,988 
Hotel & motel
— — — — 
Gas station & car wash
— — — — 
Mixed Use
— — 4,626 
Industrial & warehouse
— — — — 
Other
— — — — 
Real estate – construction— — — — 
Commercial business2,885 — — 
Residential mortgage— — — — 
Consumer and other— — 30 
Total$2,885 $11,644 
Nine Months Ended September 30, 2022Nine Months Ended September 30, 2021
Number of LoansBalanceNumber of LoansBalance
(Dollars in thousands)
Real estate – residential— $— — $— 
Real estate – commercial  
Retail1,144 6,988 
Hotel & motel— — — — 
Gas station & car wash— — — — 
Mixed Use— — 4,626 
Industrial & warehouse— — — — 
Other— — — — 
Real estate – construction— — — — 
Commercial business2,885 120 
Residential mortgage— — — — 
Consumer and other— — 41 
Total$4,029 10 $11,775 
interest income reversal, nonaccrual, by loan segment The following table presents interest income reversals, due to loans being placed on nonaccrual status, by loan segment for the three and nine months ended September 30, 2022 and 2021:
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
(Dollars in thousands)
Real estate$154 $1,071 $1,406 $2,761 
Commercial business21 12 47 49 
Residential mortgage153 — 292 (4)
Consumer and other— — — — 
Total$328 $1,083 $1,745 $2,806