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Loans Held for Investment (Tables)
 9 Months Ended
Sep. 30, 2022
Receivables [Abstract]  
Schedule of Components of Loans Held for Investment
The following table presents the composition of the loan portfolio for the periods indicated:
September 30,December 31,
(Dollars in thousands)20222021
Investor loans secured by real estate
CRE non-owner-occupied$2,771,272 $2,771,137 
Multifamily6,199,581 5,891,934 
Construction and land373,194 277,640 
SBA secured by real estate42,998 46,917 
Total investor loans secured by real estate9,387,045 8,987,628 
Business loans secured by real estate
CRE owner-occupied2,477,530 2,251,014 
Franchise real estate secured383,468 380,381 
SBA secured by real estate64,002 69,184 
Total business loans secured by real estate2,925,000 2,700,579 
Commercial loans
Commercial and industrial2,164,623 2,103,112 
Franchise non-real estate secured409,773 392,576 
SBA non-real estate secured11,557 11,045 
Total commercial loans2,585,953 2,506,733 
Retail loans
Single family residential75,176 95,292 
Consumer3,761 5,665 
Total retail loans78,937 100,957 
Loans held for investment before basis adjustment (1)
14,976,935 14,295,897 
Basis adjustment associated with fair value hedge (2)
(68,124)— 
Loans held for investment14,908,811 14,295,897 
Allowance for credit losses for loans held for investment(195,549)(197,752)
Loans held for investment, net$14,713,262 $14,098,145 
Total unfunded loan commitments$2,823,555 $2,507,911 
Loans held for sale, at lower of cost or fair value2,163 10,869 
______________________________
(1) Includes net deferred origination fees of $3.0 million and $3.5 million, and unaccreted fair value net purchase discounts of $59.0 million and $77.1 million as of September 30, 2022 and December 31, 2021, respectively.
(2) Represents the basis adjustment associated with the application of hedge accounting on certain loans. Refer to Note 11 – Derivative Instruments for additional information.
Summary of Loan Portfolio by the Company's Internal Risk Grading System The following table stratifies the loans held for investment portfolio by the Company’s internal risk grading, and by year of origination, as of September 30, 2022:
Term Loans by Vintage
(Dollars in thousands)20222021202020192018PriorRevolvingRevolving Converted to Term During the PeriodTotal
September 30, 2022
Investor loans secured by real estate
CRE non-owner-occupied
Pass$500,592 $619,259 $223,908 $362,597 $318,172 $711,998 $— $— $2,736,526 
Special mention— — — — 7,537 3,965 — — 11,502 
Substandard— — — 16,393 194 6,182 — 475 23,244 
Multifamily
Pass1,193,692 2,225,146 796,705 922,115 292,670 759,311 388 — 6,190,027 
Substandard— 6,074 — 2,732 — 748 — — 9,554 
Construction and land
Pass154,286 152,548 38,569 18,817 1,853 7,121 — — 373,194 
SBA secured by real estate
Pass6,596 130 494 5,466 7,575 14,833 — — 35,094 
Substandard— — — — 2,422 5,482 — — 7,904 
Total investor loans secured by real estate1,855,166 3,003,157 1,059,676 1,328,120 630,423 1,509,640 388 475 9,387,045 
Business loans secured by real estate
CRE owner-occupied
Pass589,994 737,861 252,950 248,513 121,626 489,097 5,510 — 2,445,551 
Special mention— — 504 — — 9,393 — — 9,897 
Substandard— — 4,656 2,442 4,718 10,266 — — 22,082 
Franchise real estate secured
Pass56,586 147,304 33,874 45,173 33,203 60,255 — — 376,395 
Substandard981 — — 6,092 — — — — 7,073 
SBA secured by real estate
Pass10,015 7,038 2,332 6,486 4,968 27,076 — — 57,915 
Substandard— — — — 1,362 4,725 — — 6,087 
Total loans secured by business real estate657,576 892,203 294,316 308,706 165,877 600,812 5,510 — 2,925,000 
Commercial loans
Commercial and industrial
Pass251,964 306,145 61,872 161,641 90,096 149,371 1,107,645 2,601 2,131,335 
Special mention15,375 — — — — — 3,764 — 19,139 
Substandard1,437 1,132 — 4,899 615 1,230 4,786 50 14,149 
Franchise non-real estate secured
Pass91,787 146,650 19,005 64,017 32,914 35,933 779 — 391,085 
Substandard1,775 400 2,983 2,276 — 11,254 — — 18,688 
SBA non-real estate secured
Pass3,212 444 472 1,679 707 3,723 — — 10,237 
Substandard— — — 133 231 349 — 607 1,320 
Total commercial loans365,550 454,771 84,332 234,645 124,563 201,860 1,116,974 3,258 2,585,953 
Term Loans by Vintage
(Dollars in thousands)20222021202020192018PriorRevolvingRevolving Converted to Term During the PeriodTotal
September 30, 2022
Retail loans
Single family residential
Pass$— $303 $178 $— $23 $50,648 $23,982 $— $75,134 
Substandard— — — — — 42 — — 42 
Consumer loans
Pass— 7 19 13 — 1,113 2,609 — 3,761 
Total retail loans— 310 197 13 23 51,803 26,591 — 78,937 
Loans held for investment before basis adjustment (1)
$2,878,292 $4,350,441 $1,438,521 $1,871,484 $920,886 $2,364,115 $1,149,463 $3,733 $14,976,935 
______________________________
(1) Excludes the basis adjustment of $68.1 million to the carrying amount of certain loans included in fair value hedging relationships. Refer to Note 11 – Derivative Instruments for additional information.

The following table stratifies the loans held for investment portfolio by the Company’s internal risk grading, and by year of origination, as of December 31, 2021:
Term Loans by Vintage
(Dollars in thousands)20212020201920182017PriorRevolvingRevolving Converted to Term During the PeriodTotal
December 31, 2021
Investor loans secured by real estate
CRE non-owner-occupied
Pass$708,560 $269,944 $393,097 $387,923 $218,388 $730,736 $9,353 $— $2,718,001 
Special mention— — 16,166 7,682 — — — — 23,848 
Substandard— — 25,777 — — 2,998 513 — 29,288 
Multifamily
Pass2,260,708 952,127 1,199,505 444,904 479,029 554,067 286 — 5,890,626 
Substandard— — — 543 — 765 — — 1,308 
Construction and land
Pass119,532 97,721 40,556 12,415 3,857 3,559 — — 277,640 
SBA secured by real estate
Pass130 497 6,259 9,074 12,070 9,198 — — 37,228 
Special mention— — — 957 — 544 — — 1,501 
Substandard— — — 2,343 3,679 2,166 — — 8,188 
Total investor loans secured by real estate3,088,930 1,320,289 1,681,360 865,841 717,023 1,304,033 10,152 — 8,987,628 
Term Loans by Vintage
(Dollars in thousands)20212020201920182017PriorRevolvingRevolving Converted to Term During the PeriodTotal
December 31, 2021
Business loans secured by real estate
CRE owner-occupied
Pass$853,044 $273,469 $287,249 $161,636 $187,130 $464,271 $6,738 $292 $2,233,829 
Substandard— — 2,553 6,074 2,966 5,592 — — 17,185 
Franchise real estate secured
Pass156,381 36,335 55,091 40,047 56,288 34,878 1,361 — 380,381 
SBA secured by real estate
Pass6,379 2,364 7,331 9,125 10,734 24,627 — — 60,560 
Special mention— — — — — 62 — — 62 
Substandard— — — 2,062 2,690 3,810 — — 8,562 
Total loans secured by business real estate1,015,804 312,168 352,224 218,944 259,808 533,240 8,099 292 2,700,579 
Commercial loans
Commercial and industrial
Pass425,683 79,635 200,234 117,471 123,345 70,789 1,032,053 3,371 2,052,581 
Special mention— — 146 — — 152 14,814 178 15,290 
Substandard1,772 — 14 2,683 863 1,150 27,684 1,075 35,241 
Franchise non-real estate secured
Pass163,865 23,943 85,206 45,061 23,672 31,163 — — 372,910 
Substandard— — 1,589 3,627 13,346 1,104 — — 19,666 
SBA non-real estate secured
Pass474 564 1,292 666 2,806 2,148 — — 7,950 
Special mention— — 681 114 — — — — 795 
Substandard— — 76 339 685 547 653 — 2,300 
Total commercial loans591,794 104,142 289,238 169,961 164,717 107,053 1,075,204 4,624 2,506,733 
Retail loans
Single family residential
Pass313 211 — 32 2,008 68,759 23,920 — 95,243 
Substandard— — — — — 49 — — 49 
Consumer loans
Pass11 28 49 19 11 1,394 4,113 — 5,625 
Substandard— — 5 — — 35 — — 40 
Total retail loans324 239 54 51 2,019 70,237 28,033 — 100,957 
Loans held for investment$4,696,852 $1,736,838 $2,322,876 $1,254,797 $1,143,567 $2,014,563 $1,121,488 $4,916 $14,295,897 
Schedule of Delinquencies in the Company's Loan Portfolio
The following tables stratify loans held for investment by delinquencies in the Company’s loan portfolio at the dates indicated:
Days Past Due
(Dollars in thousands)Current30-5960-8990+Total
September 30, 2022
Investor loans secured by real estate
CRE non-owner-occupied$2,754,403 $— $— $16,869 $2,771,272 
Multifamily6,193,507 — — 6,074 6,199,581 
Construction and land373,194 — — — 373,194 
SBA secured by real estate42,998 — — — 42,998 
Total investor loans secured by real estate9,364,102 — — 22,943 9,387,045 
Business loans secured by real estate
CRE owner-occupied2,466,281 — 6,398 4,851 2,477,530 
Franchise real estate secured383,468 — — — 383,468 
SBA secured by real estate62,675 1,244 — 83 64,002 
Total business loans secured by real estate2,912,424 1,244 6,398 4,934 2,925,000 
Commercial loans
Commercial and industrial2,159,494 240 135 4,754 2,164,623 
Franchise non-real estate secured409,773 — — — 409,773 
SBA not secured by real estate10,950 — — 607 11,557 
Total commercial loans2,580,217 240 135 5,361 2,585,953 
Retail loans
Single family residential75,176 — — — 75,176 
Consumer loans3,759 — 2 — 3,761 
Total retail loans78,935 — 2 — 78,937 
Loans held for investment before basis adjustment (1)
$14,935,678 $1,484 $6,535 $33,238 $14,976,935 

December 31, 2021
Investor loans secured by real estate
CRE non-owner-occupied$2,760,882 $— $— $10,255 $2,771,137 
Multifamily5,890,704 1,230 — — 5,891,934 
Construction and land277,640 — — — 277,640 
SBA secured by real estate46,580 — — 337 46,917 
Total investor loans secured by real estate8,975,806 1,230 — 10,592 8,987,628 
Business loans secured by real estate
CRE owner-occupied2,246,062 — — 4,952 2,251,014 
Franchise real estate secured380,381 — — — 380,381 
SBA secured by real estate68,743 — — 441 69,184 
Total business loans secured by real estate2,695,186 — — 5,393 2,700,579 
Commercial loans
Commercial and industrial2,101,558 92 — 1,462 2,103,112 
Franchise non-real estate secured392,576 — — — 392,576 
SBA not secured by real estate10,319 73 — 653 11,045 
Total commercial loans2,504,453 165 — 2,115 2,506,733 
Retail loans
Single family residential95,292 — — — 95,292 
Consumer loans5,665 — — — 5,665 
Total retail loans100,957 — — — 100,957 
Loans held for investment $14,276,402 $1,395 $— $18,100 $14,295,897 
______________________________
(1) Excludes the basis adjustment of $68.1 million to the carrying amount of certain loans included in fair value hedging relationships. Refer to Note 11 – Derivative Instruments for additional information.
Summary of Nonaccrual Loans
The following tables provide a summary of nonaccrual loans as of the dates indicated:
Nonaccrual Loans (1)
Collateral Dependent LoansNon-Collateral Dependent LoansTotal Nonaccrual LoansNonaccrual Loans with No ACL
(Dollars in thousands)BalanceACLBalanceACL
September 30, 2022
Investor loans secured by real estate
CRE non-owner-occupied$23,050 $2,640 $— $— $23,050 $6,656 
Multifamily8,806 — — — 8,806 8,806 
SBA secured by real estate547 — — — 547 547 
Total investor loans secured by real estate32,403 2,640 — — 32,403 16,009 
Business loans secured by real estate
CRE owner-occupied11,249 1,742 — — 11,249 9,507 
SBA secured by real estate197 — — — 197 197 
Total business loans secured by real estate11,446 1,742 — — 11,446 9,704 
Commercial loans
Commercial and industrial4,754 — — — 4,754 4,754 
Franchise non-real estate secured— — 11,254 — 11,254 11,254 
SBA non-real estate secured607 — — — 607 607 
Total commercial loans5,361 — 11,254 — 16,615 16,615 
Total nonaccrual loans$49,210 $4,382 $11,254 $— $60,464 $42,328 

December 31, 2021
Investor loans secured by real estate
CRE non-owner-occupied$10,255 $1,455 $— $— $10,255 $2,640 
SBA secured by real estate937 — — — 937 937 
Total investor loans secured by real estate11,192 1,455 — — 11,192 3,577 
Business loans secured by real estate
CRE owner-occupied4,952 — — — 4,952 4,952 
SBA secured by real estate589 — — — 589 589 
Total business loans secured by real estate5,541 — — — 5,541 5,541 
Commercial loans
Commercial and industrial1,462 — 336 — 1,798 1,797 
Franchise non-real estate secured— — 12,079 — 12,079 12,079 
SBA non-real estate secured653 — — — 653 653 
Total commercial loans2,115 — 12,415 — 14,530 14,529 
Retail loans
Single family residential10 — — — 10 10 
Total retail loans10 — — — 10 10 
Total nonaccrual loans$18,858 $1,455 $12,415 $— $31,273 $23,657 
______________________________
(1) The ACL for nonaccrual loans is determined based on a discounted cash flow methodology unless the loan is considered collateral dependent; otherwise, the ACL for collateral dependent nonaccrual loans is determined based on the estimated fair value of the underlying collateral.
Schedule of Collateral Dependent Loans by Collateral Type The following tables summarize collateral dependent loans by collateral type as of the dates indicated:
(Dollars in thousands)Office PropertiesIndustrial PropertiesRetail PropertiesLand PropertiesHotel PropertiesMultifamily PropertiesOther CRE PropertiesBusiness AssetsTotal
September 30, 2022
Investor loan secured by real estate
CRE non-owner-occupied$6,181 $— $475 $— $— $— $16,394 $— $23,050 
Multifamily— — — — — 8,806 — — 8,806 
SBA secured by real estate— — — — 547 — — — 547 
Total investor loans secured by real estate6,181 — 475 — 547 8,806 16,394 — 32,403 
Business loans secured by real estate
CRE owner-occupied4,656 — — 4,851 — — 1,742 — 11,249 
SBA secured by real estate114 83 — — — — — — 197 
Total business loans secured by real estate4,770 83 — 4,851 — — 1,742 — 11,446 
Commercial loans
Commercial and industrial— — — 240 — — — 4,514 4,754 
SBA non-real estate secured— — — — — — — 607 607 
Total commercial loans— — — 240 — — — 5,121 5,361 
Total collateral dependent loans$10,951 $83 $475 $5,091 $547 $8,806 $18,136 $5,121 $49,210 
(Dollars in thousands)Office PropertiesIndustrial PropertiesRetail PropertiesLand PropertiesHotel PropertiesResidential PropertiesBusiness AssetsTotal
December 31, 2021
Investor loan secured by real estate
CRE non-owner-occupied$— $— $513 $— $9,742 $— $— $10,255 
SBA secured by real estate— — — — 937 — — 937 
Total investor loans secured by real estate— — 513 — 10,679 — — 11,192 
Business loans secured by real estate
CRE owner-occupied— — — 4,952 — — — 4,952 
SBA secured by real estate148 441 — — — — — 589 
Total business loans secured by real estate148 441 — 4,952 — — — 5,541 
Commercial loans
Commercial and industrial— — — 245 — — 1,217 1,462 
SBA non-real estate secured— — — — — — 653 653 
Total commercial loans— — — 245 — — 1,870 2,115 
Retail loans
Single family residential— — — — — 10 — 10 
Total retail loans— — — — — 10 — 10 
Total collateral dependent loans$148 $441 $513 $5,197 $10,679 $10 $1,870 $18,858