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Loans Held for Investment (Tables)
 3 Months Ended
Mar. 31, 2023
Receivables [Abstract]  
Schedule of Components of Loans Held for Investment
The following table presents the composition of the loan portfolio for the periods indicated:
March 31,December 31,
(Dollars in thousands)20232022
Investor loans secured by real estate
CRE non-owner-occupied$2,590,824 $2,660,321 
Multifamily5,955,239 6,112,026 
Construction and land420,079 399,034 
SBA secured by real estate40,669 42,135 
Total investor loans secured by real estate9,006,811 9,213,516 
Business loans secured by real estate
CRE owner-occupied2,342,175 2,432,163 
Franchise real estate secured371,902 378,057 
SBA secured by real estate60,527 61,368 
Total business loans secured by real estate2,774,604 2,871,588 
Commercial loans
Commercial and industrial1,967,128 2,160,948 
Franchise non-real estate secured388,722 404,791 
SBA non-real estate secured10,437 11,100 
Total commercial loans2,366,287 2,576,839 
Retail loans
Single family residential70,913 72,997 
Consumer3,174 3,284 
Total retail loans74,087 76,281 
Loans held for investment before basis adjustment (1)
14,221,789 14,738,224 
Basis adjustment associated with fair value hedge (2)
(50,005)(61,926)
Loans held for investment14,171,784 14,676,298 
Allowance for credit losses for loans held for investment(195,388)(195,651)
Loans held for investment, net$13,976,396 $14,480,647 
Total unfunded loan commitments$2,413,169 $2,489,203 
Loans held for sale, at lower of cost or fair value1,247 2,643 
______________________________
(1) Includes net deferred origination fees of $745,000 and $1.9 million, and unaccreted fair value net purchase discounts of $52.2 million and $54.8 million as of March 31, 2023 and December 31, 2022, 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 well as the gross charge-offs on a year-to-date basis by year of origination as of March 31, 2023:
Term Loans by Vintage
(Dollars in thousands)20232022202120202019PriorRevolvingRevolving Converted to Term During the PeriodTotal
March 31, 2023
Investor loans secured by real estate
CRE non-owner-occupied
Pass$10,306 $526,084 $604,909 $199,161 $318,943 $913,142 $— $— $2,572,545 
Special mention— — — — — 5,104 — — 5,104 
Substandard— 450 — — — 12,725 — — 13,175 
Multifamily
Pass11,931 1,216,585 2,158,819 778,678 885,448 886,728 — — 5,938,189 
Special mention— — — — 12,604 — — — 12,604 
Substandard— — 985 — 2,723 738 — — 4,446 
Construction and land
Pass24,682 213,034 153,359 16,609 4,876 6,077 1,442 — 420,079 
SBA secured by real estate
Pass— 6,546 130 493 5,363 19,211 — — 31,743 
Substandard— — — — — 8,926 — — 8,926 
Total investor loans secured by real estate46,919 1,962,699 2,918,202 994,941 1,229,957 1,852,651 1,442 — 9,006,811 
Current period gross charge-offs— — 217 — — 66 — — 283 
Business loans secured by real estate
CRE owner-occupied
Pass8,779 579,514 689,292 234,096 233,804 512,531 5,795 — 2,263,811 
Special mention— 3,920 2,836 — — 11,623 — — 18,379 
Substandard— 11,078 1,007 11,339 — 36,561 — — 59,985 
Franchise real estate secured
Pass8,551 45,691 125,282 33,145 40,580 85,108 — — 338,357 
Special mention729 7,766 17,015 — 836 — — — 26,346 
Substandard— 958 — — 5,941 300 — — 7,199 
SBA secured by real estate
Pass116 10,724 8,168 2,131 5,648 28,285 — — 55,072 
Special mention— — — — — 195 — — 195 
Substandard— — — — — 5,260 — — 5,260 
Total loans secured by business real estate18,175 659,651 843,600 280,711 286,809 679,863 5,795 — 2,774,604 
Current period gross charge-offs— — 318 — — 1,845 — — 2,163 
Term Loans by Vintage
(Dollars in thousands)20232022202120202019PriorRevolvingRevolving Converted to Term During the PeriodTotal
Commercial loans
Commercial and industrial
Pass23,116 274,813 251,865 54,249 150,173 188,547 942,518 334 1,885,615 
Special mention— 1,804 1,626 — 595 1,501 24,140 — 29,666 
Substandard— 15,900 3,294 746 4 1,255 30,648 — 51,847 
Franchise non-real estate secured
Pass5,573 93,172 121,323 17,959 43,011 67,423 777 — 349,238 
Special mention— 2,699 15,876 — 12,142 — — — 30,717 
Substandard— 1,683 369 2,783 2,103 1,829 — — 8,767 
SBA non-real estate secured
Pass18 3,386 357 270 1,597 3,341 — — 8,969 
Substandard— 572 — — 127 769 — — 1,468 
Total commercial loans28,707 394,029 394,710 76,007 209,752 264,665 998,083 334 2,366,287 
Current period gross charge-offs— 177 48 5 289 30 574 — 1,123 
Retail loans
Single family residential
Pass$— $— $— $174 $— $47,453 $23,282 $— $70,909 
Substandard— — — — — 4 — — 4 
Consumer loans
Pass— — 3 14 10 914 2,233 — 3,174 
Total retail loans— — 3 188 10 48,371 25,515 — 74,087 
Current period gross charge-offs— — — — — 93 2 — 95 
Loans held for investment before basis adjustment (1)
$93,801 $3,016,379 $4,156,515 $1,351,847 $1,726,528 $2,845,550 $1,030,835 $334 $14,221,789 
Total current period gross charge-offs— 177 583 5 289 2,034 576 — 3,664 
______________________________
(1) Excludes the basis adjustment of $50.0 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, 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 
Term Loans by Vintage
(Dollars in thousands)20222021202020192018PriorRevolvingRevolving Converted to Term During the PeriodTotal
December 31, 2022
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 
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$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 11 – Derivative Instruments for additional information.
Schedule of Financing Receivable, MLTB
The following table shows the amortized cost of the MLTB by class and type of modification, as well as the percentage of the loan modified to total loans in each class at and during the period indicated:
For the Three Months Ended March 31, 2023
Term Extension
(Dollars in thousands)BalancePercent of Total Class of Loans
Business loans secured by real estate
CRE owner-occupied$851 0.04 %
Total business loans secured by real estate851 
The following table describes the financial effect of the loan modification made for the borrower experiencing financial difficulty during the three months ended March 31, 2023:
Term Extension
Business loans secured by real estate
CRE owner-occupied
Extended term by 4 months
The following table depicts the performance of the MLTB under ASU 2022-02 in the last three months as of the date indicated:
Days Past Due
(Dollars in thousands)Current30-5960-8990+Total
March 31, 2023
Business loans secured by real estate
CRE owner-occupied$851 $— $— $— $851 
Total business loans secured by real estate851 — — — 851 
Total$851 $— $— $— $851 
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
March 31, 2023
Investor loans secured by real estate
CRE non-owner-occupied$2,585,273 $6 $1,129 $4,416 $2,590,824 
Multifamily5,951,531 — — 3,708 5,955,239 
Construction and land420,079 — — — 420,079 
SBA secured by real estate40,669 — — — 40,669 
Total investor loans secured by real estate8,997,552 6 1,129 8,124 9,006,811 
Business loans secured by real estate
CRE owner-occupied2,337,413 — — 4,762 2,342,175 
Franchise real estate secured371,902 — — — 371,902 
SBA secured by real estate59,029 308 — 1,190 60,527 
Total business loans secured by real estate2,768,344 308 — 5,952 2,774,604 
Commercial loans
Commercial and industrial1,962,376 447 69 4,236 1,967,128 
Franchise non-real estate secured388,722 — — — 388,722 
SBA not secured by real estate9,865 — — 572 10,437 
Total commercial loans2,360,963 447 69 4,808 2,366,287 
Retail loans
Single family residential70,913 — — — 70,913 
Consumer loans3,174 — — — 3,174 
Total retail loans74,087 — — — 74,087 
Loans held for investment before basis adjustment (1)
$14,200,946 $761 $1,198 $18,884 $14,221,789 

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 
______________________________
(1) Excludes the basis adjustment of $50.0 million and $61.9 million to the carrying amount of certain loans included in fair value hedging relationships as of March 31, 2023 and December 31, 2022, respectively. 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
March 31, 2023
Investor loans secured by real estate
CRE non-owner-occupied$5,545 $— $— $— $5,545 $5,545 
Multifamily3,708 — — — 3,708 3,708 
SBA secured by real estate519 — — — 519 519 
Total investor loans secured by real estate9,772 — — — 9,772 9,772 
Business loans secured by real estate
CRE owner-occupied9,102 — — — 9,102 9,102 
SBA secured by real estate1,190 — — — 1,190 1,190 
Total business loans secured by real estate10,292 — — — 10,292 10,292 
Commercial loans
Commercial and industrial4,236 3,999 — — 4,236 237 
SBA non-real estate secured572 — — — 572 572 
Total commercial loans4,808 3,999 — — 4,808 809 
Total nonaccrual loans$24,872 $3,999 $— $— $24,872 $20,873 

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 
______________________________
(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
March 31, 2023
Investor loan secured by real estate
CRE non-owner-occupied$1,129 $— $450 $— $— $— $3,966 $— $5,545 
Multifamily— — — — — 3,708 — — 3,708 
SBA secured by real estate— — — — 519 — — — 519 
Total investor loans secured by real estate1,129 — 450 — 519 3,708 3,966 — 9,772 
Business loans secured by real estate
CRE owner-occupied4,341 — — 4,761 — — — — 9,102 
SBA secured by real estate104 1,086 — — — — — — 1,190 
Total business loans secured by real estate4,445 1,086 — 4,761 — — — — 10,292 
Commercial loans
Commercial and industrial— — — 237 — — — 3,999 4,236 
SBA non-real estate secured— — — — — — — 572 572 
Total commercial loans— — — 237 — — — 4,571 4,808 
Total collateral dependent loans$5,574 $1,086 $450 $4,998 $519 $3,708 $3,966 $4,571 $24,872 
(Dollars in thousands)Office PropertiesIndustrial PropertiesRetail PropertiesLand PropertiesHotel PropertiesMultifamily PropertiesOther CRE PropertiesBusiness AssetsTotal
December 31, 2022
Investor loan secured by real estate
CRE non-owner-occupied$— $— $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