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Loans Receivable and Allowance for Credit Losses (Tables)
 6 Months Ended
Jun. 30, 2023
Receivables [Abstract]  
Summary of Loans Receivable by Major Category
The following is a summary of loans receivable by segment:
June 30, 2023December 31, 2022
(Dollars in thousands)
Loan portfolio composition
Commercial real estate (“CRE”) loans $9,192,160 $9,414,580 
Commercial and industrial (“C&I”) loans4,805,126 5,109,532 
Residential mortgage loans834,377 846,080 
Consumer and other loans33,147 33,348 
Total loans receivable, net of deferred costs and fees14,864,810 15,403,540 
Allowance for credit losses(172,996)(162,359)
Loans receivable, net of allowance for credit losses$14,691,814 $15,241,181 
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 six months ended June 30, 2023 and 2022.
CRE LoansC&I LoansResidential Mortgage LoansConsumer and Other LoansTotal
(Dollars in thousands)
Three Months Ended June 30, 2023
Balance, beginning of period$108,835 $42,790 $11,253 $666 $163,544 
Provision (credit) for credit losses(3,076)11,013 730 233 8,900 
Loans charged off(561)(298)— (120)(979)
Recoveries of charge offs123 1,389 — 19 1,531 
Balance, end of period$105,321 $54,894 $11,983 $798 $172,996 
Six Months Ended June 30, 2023
Balance, beginning of period$95,884 $56,872 $8,920 $683 $162,359 
ASU 2022-02 day 1 adoption adjustment19 (426)— — (407)
Provision (credit) for credit losses9,787 (2,487)3,063 237 10,600 
Loans charged off(561)(738)— (175)(1,474)
Recoveries of charge offs192 1,673 — 53 1,918 
Balance, end of period$105,321 $54,894 $11,983 $798 $172,996 

CRE LoansC&I LoansResidential Mortgage LoansConsumer and Other LoansTotal
(Dollars in thousands)
Three Months Ended June 30, 2022
Balance, beginning of period$106,545 $35,676 $4,262 $967 $147,450 
Provision (credit) for credit losses(7,229)8,715 1,817 (103)3,200 
Loans charged off(476)(172)— (64)(712)
Recoveries of charge offs984 633 — 25 1,642 
Balance, end of period$99,824 $44,852 $6,079 $825 $151,580 
Six Months Ended June 30, 2022
Balance, beginning of period$108,440 $27,811 $3,316 $983 $140,550 
Provision (credit) for credit losses(25,542)15,051 2,763 (72)(7,800)
Loans charged off(1,751)(349)— (115)(2,215)
Recoveries of charge offs18,677 2,339 — 29 21,045 
Balance, end of period$99,824 $44,852 $6,079 $825 $151,580 
The following tables break out the allowance for credit losses and loan balance by measurement methodology at June 30, 2023 and December 31, 2022:
June 30, 2023
CRE LoansC&I LoansResidential Mortgage LoansConsumer and Other LoansTotal
(Dollars in thousands)
Allowance for credit losses:
Individually evaluated$1,150 $11,706 $245 $72 $13,173 
Collectively evaluated104,171 43,188 11,738 726 159,823 
Total$105,321 $54,894 $11,983 $798 $172,996 
Loans outstanding:
Individually evaluated$29,096 $23,042 $8,583 $180 $60,901 
Collectively evaluated9,163,064 4,782,084 825,794 32,967 14,803,909 
Total$9,192,160 $4,805,126 $834,377 $33,147 $14,864,810 

December 31, 2022
CRE LoansC&I LoansResidential Mortgage LoansConsumer and Other LoansTotal
(Dollars in thousands)
Allowance for credit losses:
Individually evaluated$870 $2,941 $24 $21 $3,856 
Collectively evaluated95,014 53,931 8,896 662 158,503 
Total$95,884 $56,872 $8,920 $683 $162,359 
Loans outstanding:
Individually evaluated$43,461 $12,477 $9,775 $436 $66,149 
Collectively evaluated9,371,119 5,097,055 836,305 32,912 15,337,391 
Total$9,414,580 $5,109,532 $846,080 $33,348 $15,403,540 
Loan Modifications to Borrowers Experiencing Financial Difficulty
In January 2023, the Company adopted ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): TDR and Vintage Disclosures (“ASU 2022-02”), which eliminated the accounting guidance for TDR while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty. The Company applied this guidance on a modified retrospective transition method, which resulted in a positive cumulative effect adjustment to retained earnings of $287 thousand, net of tax. Subsequent to the adoption of ASU 2022-02, the new guidance is applied uniformly to the Company’s entire loan portfolio when estimating expected credit losses.
For the three and six months ended June 30, 2023, there was only one C&I loan modification to a borrower experiencing financial difficulty, amounting to $26.0 million or 0.54% of total C&I loans. The loan modification type was a term extension of four months. For the three and six months ended June 30, 2023, the Company recorded an allowance for credit losses of $115 thousand for this modification. There were no loan modifications that subsequently defaulted during the period.
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, as well as loans past due 90 or more days and still on accrual status, by loan segment and broken out by loans with a recorded ACL and those without a recorded ACL, at June 30, 2023 and December 31, 2022.
June 30, 2023
Nonaccrual with No ACLNonaccrual with an ACL
Total Nonaccrual (1)
Accruing Loans Past Due 90 Days or More
(Dollars in thousands)
CRE loans$22,286 $6,984 $29,270 $14,737 
C&I loans1,212 21,830 23,042 362 
Residential mortgage loans4,420 4,163 8,583 — 
Consumer and other loans— 357 357 83 
Total$27,918 $33,334 $61,252 $15,182 
December 31, 2022
Nonaccrual with No ACLNonaccrual with an ACL
Total Nonaccrual (1)
Accruing Loans Past Due 90 Days or More
(Dollars in thousands)
CRE loans$29,782 $4,133 $33,915 $— 
C&I loans1,618 4,002 5,620 336 
Residential mortgage loans5,959 3,816 9,775 — 
Consumer and other loans— 377 377 65 
Total$37,359 $12,328 $49,687 $401 
__________________________________
(1)    Total nonaccrual loans exclude the guaranteed portion of SBA loans that are in liquidation totaling $11.9 million and $9.8 million, at June 30, 2023 and December 31, 2022, respectively.
Amortized Cost Basis of Collateral-Dependent Loans
The following table presents the amortized cost of collateral-dependent loans at June 30, 2023 and December 31, 2022:
June 30, 2023December 31, 2022
Real Estate CollateralOther CollateralTotalReal Estate CollateralOther CollateralTotal
(Dollars in thousands)
CRE loans$25,635 $— $25,635 $35,523 $— $35,523 
C&I loans1,212 20,203 21,415 1,618 2,743 4,361 
Residential mortgage loans4,420 — 4,420 5,959 — 5,959 
Total$31,267 $20,203 $51,470 $43,100 $2,743 $45,843 
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 at June 30, 2023 and December 31, 2022, by loan segment:
 June 30, 2023December 31, 2022
 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)
CRE loans$7,497 $319 $21,063 $28,879 $2,292 $2,727 $5,694 $10,713 
C&I loans765 121 20,150 21,036 3,258 18 2,137 5,413 
Residential mortgage loans1,043 — 4,606 5,649 2,310 — 5,106 7,416 
Consumer and other loans148 57 83 288 617 44 308 969 
Total Past Due$9,453 $497 $45,902 $55,852 $8,477 $2,789 $13,245 $24,511 
Financing Receivable Credit Quality Indicators
The following table presents the amortized cost basis of loans receivable by segment, risk rating, and year of origination at June 30, 2023 and December 31, 2022.
June 30, 2023
Term Loan by Origination YearRevolving LoansTotal
20232022202120202019Prior
(Dollars in thousands)
CRE loans
Pass$389,783 $2,450,867 $2,107,752 $1,281,552 $1,039,543 $1,693,896 $81,560 $9,044,953 
Special mention— 2,772 22,388 4,145 22,789 19,165 10,997 82,256 
Substandard— 824 8,370 1,001 2,884 51,872 — 64,951 
Subtotal$389,783 $2,454,463 $2,138,510 $1,286,698 $1,065,216 $1,764,933 $92,557 $9,192,160 
Year-to-date gross charge offs$— $119 $— $11 $34 $397 $— $561 
C&I loans
Pass$807,771 $1,686,472 $885,837 $255,862 $219,210 $107,364 $654,007 $4,616,523 
Special mention38 19,212 54,415 9,854 173 — 44,858 128,550 
Substandard51 16,977 24,716 4,695 577 2,910 10,127 60,053 
Subtotal$807,860 $1,722,661 $964,968 $270,411 $219,960 $110,274 $708,992 $4,805,126 
Year-to-date gross charge offs$— $89 $54 $45 $85 $465 $— $738 
Residential mortgage loans
Pass$15,658 $373,241 $273,044 $1,374 $29,436 $132,782 $— $825,535 
Special mention— — — — — — — — 
Substandard— — 314 — 1,723 6,805 — 8,842 
Subtotal$15,658 $373,241 $273,358 $1,374 $31,159 $139,587 $— $834,377 
Year-to-date gross charge offs$— $— $— $— $— $— $— $— 
Consumer and other loans
Pass$3,565 $1,158 $332 $2,739 $165 $8,861 $15,970 $32,790 
Special mention— — — — — — — — 
Substandard— — — — — 357 — 357 
Subtotal$3,565 $1,158 $332 $2,739 $165 $9,218 $15,970 $33,147 
Year-to-date gross charge offs$— $— $— $— $— $— $175 $175 
Total loans
Pass$1,216,777 $4,511,738 $3,266,965 $1,541,527 $1,288,354 $1,942,903 $751,537 $14,519,801 
Special mention38 21,984 76,803 13,999 22,962 19,165 55,855 210,806 
Substandard51 17,801 33,400 5,696 5,184 61,944 10,127 134,203 
Total$1,216,866 $4,551,523 $3,377,168 $1,561,222 $1,316,500 $2,024,012 $817,519 $14,864,810 
Total year-to-date gross charge offs$— $208 $54 $56 $119 $862 $175 $1,474 
December 31, 2022
Term Loan by Origination YearRevolving LoansTotal
20222021202020192018Prior
(Dollars in thousands)
CRE loans
Pass$2,421,631 $2,194,073 $1,372,027 $1,076,405 $1,018,553 $1,064,267 $105,274 $9,252,230 
Special mention— 14,622 7,301 20,426 13,565 26,746 202 82,862 
Substandard— 8,240 1,736 7,881 10,250 51,381 — 79,488 
Subtotal$2,421,631 $2,216,935 $1,381,064 $1,104,712 $1,042,368 $1,142,394 $105,476 $9,414,580 
C&I loans
Pass$2,311,344 $1,090,034 $291,592 $298,133 $69,721 $95,531 $864,343 $5,020,698 
Special mention17,911 37,393 13,707 110 — 24 5,256 74,401 
Substandard— 2,833 5,889 1,000 1,020 3,691 — 14,433 
Subtotal$2,329,255 $1,130,260 $311,188 $299,243 $70,741 $99,246 $869,599 $5,109,532 
Residential mortgage loans
Pass$382,935 $283,163 $1,386 $30,603 $62,976 $75,242 $— $836,305 
Special mention— — — — — — — — 
Substandard— 311 — 967 384 8,113 — 9,775 
Subtotal$382,935 $283,474 $1,386 $31,570 $63,360 $83,355 $— $846,080 
Consumer and other loans
Pass$10,005 $723 $3,351 $223 $10 $1,420 $17,239 $32,971 
Special mention— — — — — — — — 
Substandard— — — — — 377 — 377 
Subtotal$10,005 $723 $3,351 $223 $10 $1,797 $17,239 $33,348 
Total loans
Pass$5,125,915 $3,567,993 $1,668,356 $1,405,364 $1,151,260 $1,236,460 $986,856 $15,142,204 
Special mention17,911 52,015 21,008 20,536 13,565 26,770 5,458 157,263 
Substandard— 11,384 7,625 9,848 11,654 63,562 — 104,073 
Total$5,143,826 $3,631,392 $1,696,989 $1,435,748 $1,176,479 $1,326,792 $992,314 $15,403,540 
For the three and six months ended June 30, 2023 and the twelve months ended December 31, 2022, there were no revolving loans converted to term loans.
Loans Sold From Loans Held For Investment The breakdown of loans by segment that were reclassified from held for investment to held for sale for the three and six months ended June 30, 2023 and 2022, is presented in the following table:
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Transfer of loans held for investment to held for sale(Dollars in thousands)
CRE loans$13,168 $57,835 $66,776 $155,486 
C&I loans61,608 9,867 170,483 16,769 
Total$74,776 $67,702 $237,259 $172,255 
Troubled Debt Restructurings
Summary of Troubled Debt Restructurings with Subsequent Payment Default
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 six months ended June 30, 2023 and 2022:
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
(Dollars in thousands)
CRE loans$214 $1,097 $665 $1,252 
C&I loans368 7 886 26 
Residential mortgage loans18 — 32 139 
Total$600 $1,104 $1,583 $1,417