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Loans Held for Investment (Tables)
 12 Months Ended
Dec. 31, 2022
Receivables [Abstract]  
Schedule of Components of Loans Held for Investment
The following table presents the composition of the loan portfolio as of the dates indicated:
 December 31,
(Dollars in thousands)20222021
Investor loans secured by real estate
CRE non-owner-occupied$2,660,321 $2,771,137 
Multifamily6,112,026 5,891,934 
Construction and land399,034 277,640 
SBA secured by real estate42,135 46,917 
Total investor loans secured by real estate9,213,516 8,987,628 
Business loans secured by real estate
CRE owner-occupied2,432,163 2,251,014 
Franchise real estate secured378,057 380,381 
SBA secured by real estate61,368 69,184 
Total business loans secured by real estate2,871,588 2,700,579 
Commercial loans
Commercial and industrial2,160,948 2,103,112 
Franchise non-real estate secured404,791 392,576 
SBA non-real estate secured11,100 11,045 
Total commercial loans2,576,839 2,506,733 
Retail loans
Single family residential72,997 95,292 
Consumer3,284 5,665 
Total retail loans76,281 100,957 
Loans held for investment before basis adjustment (1)
14,738,224 14,295,897 
Basis adjustment associated with fair value hedge (2)
(61,926)— 
Loans held for investment14,676,298 14,295,897 
Allowance for credit losses for loans held for investment(195,651)(197,752)
Loans held for investment, net$14,480,647 $14,098,145 
Total unfunded loan commitments$2,489,203 $2,507,911 
Loans held for sale, at lower of cost or fair value$2,643 $10,869 
____________________________________________________
(1) Includes net deferred origination fees of $1.9 million and $3.5 million, and unaccreted fair value net purchase discounts of $54.8 million and $77.1 million as of December 31, 2022 and December 31, 2021, respectively.
(2) Represents the basis adjustment associated with the application of hedge accounting on certain loans. Refer to Note 19 – 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 December 31, 2022:
Term Loans by Vintage
(Dollars in thousands)20222021202020192018PriorRevolvingRevolving Converted to Term During the PeriodTotal
December 31, 2022
Investor loans secured by real estate
CRE non-owner-occupied
Pass$523,895 $607,153 $208,760 $347,889 $308,317 $651,593 $— $— $2,647,607 
Special mention— — — — 7,487 — — — 7,487 
Substandard— — — — 194 4,570 — 463 5,227 
Multifamily
Pass1,230,359 2,187,255 786,436 889,737 263,241 732,808 — — 6,089,836 
Special mention— — — 12,667 — — — — 12,667 
Substandard— 6,057 — 2,723 — 743 — — 9,523 
Construction and land
Pass187,567 154,231 38,760 9,615 1,843 7,018 — — 399,034 
SBA secured by real estate
Pass6,571 130 493 5,407 7,361 13,199 — — 33,161 
Substandard— — — — 2,416 6,558 — — 8,974 
Total investor loans secured by real estate1,948,392 2,954,826 1,034,449 1,268,038 590,859 1,416,489 — 463 9,213,516 
Business loans secured by real estate
CRE owner-occupied
Pass593,826 718,223 242,125 240,772 114,581 448,531 5,661 — 2,363,719 
Special mention334 1,015 — — 675 327 — — 2,351 
Substandard10,838 2,541 11,970 2,403 4,676 33,665 — — 66,093 
Franchise real estate secured
Pass54,654 131,541 33,513 44,229 32,815 55,893 — — 352,645 
Special mention4,891 13,145 — — — — — — 18,036 
Substandard980 — — 6,092 — 304 — — 7,376 
SBA secured by real estate
Pass10,993 6,978 2,329 5,710 4,440 25,415 — — 55,865 
Special mention— — — — — 118 — — 118 
Substandard— — — — 1,354 4,031 — — 5,385 
Total loans secured by business real estate676,516 873,443 289,937 299,206 158,541 568,284 5,661 — 2,871,588 
Commercial loans
Commercial and industrial
Pass282,131 262,044 55,659 155,310 78,684 121,918 1,134,568 3,412 2,093,726 
Special mention15,105 3,567 798 — 1,864 41 9,898 — 31,273 
Substandard2,590 80 — 3,867 562 1,029 27,680 141 35,949 
Franchise non-real estate secured
Pass102,542 128,030 18,486 46,027 28,664 43,486 778 — 368,013 
Special mention1,372 14,382 — 11,829 — — — — 27,583 
Substandard1,757 385 2,852 2,256 1,637 308 — — 9,195 
SBA non-real estate secured
Pass3,444 435 276 1,638 633 3,124 — — 9,550 
Special mention— — — — — — — — — 
Substandard— — — 130 224 606 — 590 1,550 
Total commercial loans408,941 408,923 78,071 221,057 112,268 170,512 1,172,924 4,143 2,576,839 
Term Loans by Vintage
(Dollars in thousands)20222021202020192018PriorRevolvingRevolving Converted to Term During the PeriodTotal
December 31, 2022
Retail loans
Single family residential
Pass— — 176 — 22 49,729 23,065 — 72,992 
Substandard— — — — — 5 — — 5 
Consumer loans
Pass— 6 17 11 — 969 2,254 — 3,257 
Substandard— — — — — 27 — — 27 
Total retail loans— 6 193 11 22 50,730 25,319 — 76,281 
Loans held for investment before basis adjustment (1)
$3,033,849 $4,237,198 $1,402,650 $1,788,312 $861,690 $2,206,015 $1,203,904 $4,606 $14,738,224 
______________________________
(1) Excludes the basis adjustment of $61.9 million to the carrying amount of certain loans included in fair value hedging relationships. Refer to Note 19 – 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 estate$3,088,930 $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 the loans held for investment portfolio by delinquency as of the periods indicated:
Days Past Due
(Dollars in thousands)Current30-5960-8990+Total
December 31, 2022
Investor loans secured by real estate
CRE non-owner-occupied$2,655,892 $— $— $4,429 $2,660,321 
Multifamily6,103,246 2,723 — 6,057 6,112,026 
Construction and land399,034 — — — 399,034 
SBA secured by real estate42,135 — — — 42,135 
Total investor loans secured by real estate9,200,307 2,723 — 10,486 9,213,516 
Business loans secured by real estate
CRE owner-occupied2,424,174 1,434 — 6,555 2,432,163 
Franchise real estate secured370,984 7,073 — — 378,057 
SBA secured by real estate60,177 — 104 1,087 61,368 
Total business loans secured by real estate2,855,335 8,507 104 7,642 2,871,588 
Commercial loans
Commercial and industrial2,152,302 4,657 81 3,908 2,160,948 
Franchise non-real estate secured401,199 3,592 — — 404,791 
SBA not secured by real estate10,511 — — 589 11,100 
Total commercial loans2,564,012 8,249 81 4,497 2,576,839 
Retail loans
Single family residential71,940 1,057 — — 72,997 
Consumer loans3,282 2 — — 3,284 
Total retail loans75,222 1,059 — — 76,281 
Loans held for investment before basis adjustment (1)
$14,694,876 $20,538 $185 $22,625 $14,738,224 
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 $61.9 million to the carrying amount of certain loans included in fair value hedging relationships. Refer to Note 19 – 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
December 31, 2022
Investor loans secured by real estate
CRE non-owner-occupied$4,429 $— $— $— $4,429 $4,429 
Multifamily8,780 — — — 8,780 8,780 
SBA secured by real estate533 — — — 533 533 
Total investor loans secured by real estate13,742 — — — 13,742 13,742 
Business loans secured by real estate
CRE owner-occupied11,475 1,742 — — 11,475 9,733 
SBA secured by real estate1,191 — — — 1,191 1,191 
Total business loans secured by real estate12,666 1,742 — — 12,666 10,924 
Commercial loans
Commercial and industrial3,908 — — — 3,908 3,908 
SBA non-real estate secured589 — — — 589 589 
Total commercial loans4,497 — — — 4,497 4,497 
Total nonaccrual loans$30,905 $1,742 $— $— $30,905 $29,163 
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 $23,657 
______________________________
(1) The ACL for nonaccrual loans is determined based on a discounted cash flow methodology unless the loan is considered collateral dependent; otherwise, the ACL for collateral dependent nonaccrual loans is determined based on the estimated fair value of the underlying collateral.
Schedule of Collateral Dependent Loans by Collateral Type
The following tables summarize collateral dependent loans by collateral type as of the dates indicated:
December 31, 2022
(Dollars in thousands)Office PropertiesIndustrial PropertiesRetail PropertiesLand PropertiesHotel PropertiesMultifamily PropertiesOther CRE PropertiesBusiness AssetsTotal
Investor loan secured by real estate
CRE non-owner-occupied$— $— $463 $— $— $— $3,966 $— $4,429 
Multifamily— — — — — 8,780 — — 8,780 
SBA secured by real estate— — — — 533 — — — 533 
Total investor loans secured by real estate— — 463 — 533 8,780 3,966 — 13,742 
Business loans secured by real estate
CRE owner-occupied4,417 — — 4,813 — — 2,245 — 11,475 
SBA secured by real estate104 1,087 — — — — — — 1,191 
Total business loans secured by real estate4,521 1,087 — 4,813 — — 2,245 — 12,666 
Commercial loans
Commercial and industrial— — — 238 — — 490 3,180 3,908 
SBA non-real estate secured— — — — — — — 589 589 
Total commercial loans— — — 238 — — 490 3,769 4,497 
Total collateral dependent loans$4,521 $1,087 $463 $5,051 $533 $8,780 $6,701 $3,769 $30,905 
December 31, 2021
(Dollars in thousands)Office PropertiesIndustrial PropertiesRetail PropertiesLand PropertiesHotel PropertiesResidential PropertiesBusiness AssetsTotal
Investor loan secured by real estate
CRE non-owner-occupied$— $— $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