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Loans Held for Investment (Tables)
 6 Months Ended
Jun. 30, 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:
June 30,December 31,
(Dollars in thousands)20232022
Investor loans secured by real estate
CRE non-owner-occupied$2,571,246 $2,660,321 
Multifamily5,788,030 6,112,026 
Construction and land428,287 399,034 
SBA secured by real estate38,876 42,135 
Total investor loans secured by real estate8,826,439 9,213,516 
Business loans secured by real estate
CRE owner-occupied2,281,721 2,432,163 
Franchise real estate secured318,539 378,057 
SBA secured by real estate57,084 61,368 
Total business loans secured by real estate2,657,344 2,871,588 
Commercial loans
Commercial and industrial1,744,763 2,160,948 
Franchise non-real estate secured351,944 404,791 
SBA non-real estate secured9,688 11,100 
Total commercial loans2,106,395 2,576,839 
Retail loans
Single family residential70,993 72,997 
Consumer2,241 3,284 
Total retail loans73,234 76,281 
Loans held for investment before basis adjustment (1)
13,663,412 14,738,224 
Basis adjustment associated with fair value hedge (2)
(53,130)(61,926)
Loans held for investment13,610,282 14,676,298 
Allowance for credit losses for loans held for investment(192,333)(195,651)
Loans held for investment, net$13,417,949 $14,480,647 
Total unfunded loan commitments$2,202,647 $2,489,203 
Loans held for sale, at lower of cost or fair value2,184 2,643 
______________________________
(1) Includes net deferred origination fees of $142,000 and $1.9 million, and unaccreted fair value net purchase discounts of $48.4 million and $54.8 million as of June 30, 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 June 30, 2023:
Term Loans by Vintage
(Dollars in thousands)20232022202120202019PriorRevolvingRevolving Converted to Term During the PeriodTotal
June 30, 2023
Investor loans secured by real estate
CRE non-owner-occupied
Pass$13,775 $520,853 $599,620 $196,597 $321,542 $903,295 $— $— $2,555,682 
Special mention— 3,847 2,570 — — — — — 6,417 
Substandard— 437 — — — 8,710 — — 9,147 
Multifamily
Pass73,440 1,210,300 2,095,164 739,051 858,898 798,230 403 — 5,775,486 
Special mention— — — — 12,544 — — — 12,544 
Construction and land
Pass45,304 227,148 137,500 7,693 4,858 5,784 — — 428,287 
SBA secured by real estate
Pass— 6,524 130 493 4,820 18,351 — — 30,318 
Substandard— — — — 534 8,024 — — 8,558 
Total investor loans secured by real estate132,519 1,969,109 2,834,984 943,834 1,203,196 1,742,394 403 — 8,826,439 
Current period gross charge-offs— — 217 — — 2,730 — — 2,947 
Business loans secured by real estate
CRE owner-occupied
Pass11,456 582,666 680,769 231,507 227,929 499,279 5,845 — 2,239,451 
Special mention— — 2,816 — — 15,229 — — 18,045 
Substandard— 10,348 — 4,251 — 9,626 — — 24,225 
Franchise real estate secured
Pass7,619 39,661 129,858 28,875 16,617 78,356 — — 300,986 
Special mention— 7,701 3,879 — 823 — — — 12,403 
Substandard— 950 — — 3,903 297 — — 5,150 
SBA secured by real estate
Pass115 9,951 8,079 2,128 5,140 26,014 — — 51,427 
Substandard— — — — — 5,657 — — 5,657 
Total loans secured by business real estate19,190 651,277 825,401 266,761 254,412 634,458 5,845 — 2,657,344 
Current period gross charge-offs— — 318 191 — 1,861 — — 2,370 
Term Loans by Vintage
(Dollars in thousands)20232022202120202019PriorRevolvingRevolving Converted to Term During the PeriodTotal
Commercial loans
Commercial and industrial
Pass$29,948 $229,282 $198,520 $50,242 $120,448 $168,018 $856,579 $3,354 $1,656,391 
Special mention— 5,152 12,709 — 561 — 21,279 55 39,756 
Substandard— 15,310 3,067 694 2 1,213 14,199 14,131 48,616 
Franchise non-real estate secured
Pass7,524 79,358 122,005 17,431 39,975 63,563 776 — 330,632 
Special mention— 1,346 1,767 — 674 — — — 3,787 
Substandard— 1,641 354 2,651 11,169 1,710 — — 17,525 
SBA non-real estate secured
Pass331 3,336 352 119 1,558 2,926 — — 8,622 
Substandard— 555 — 146 124 241 — — 1,066 
Total commercial loans37,803 335,980 338,774 71,283 174,511 237,671 892,833 17,540 2,106,395 
Current period gross charge-offs— 282 59 5 289 36 677 — 1,348 
Retail loans
Single family residential
Pass20 — — 172 — 45,491 25,308 — 70,991 
Substandard— — — — — 2 — — 2 
Consumer loans
Pass— — 3 13 8 881 1,336 — 2,241 
Total retail loans20 — 3 185 8 46,374 26,644 — 73,234 
Current period gross charge-offs— — — — — 983 2 — 985 
Loans held for investment before basis adjustment (1)
$189,532 $2,956,366 $3,999,162 $1,282,063 $1,632,127 $2,660,897 $925,725 $17,540 $13,663,412 
Total current period gross charge-offs— 282 594 196 289 5,610 679 — 7,650 
______________________________
(1) Excludes the basis adjustment of $53.1 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, 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 
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 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
June 30, 2023
Investor loans secured by real estate
CRE non-owner-occupied$2,569,680 $— $— $1,566 $2,571,246 
Multifamily5,788,030 — — — 5,788,030 
Construction and land428,287 — — — 428,287 
SBA secured by real estate38,349 527 — — 38,876 
Total investor loans secured by real estate8,824,346 527 — 1,566 8,826,439 
Business loans secured by real estate
CRE owner-occupied2,276,988 — — 4,733 2,281,721 
Franchise real estate secured318,539 — — — 318,539 
SBA secured by real estate55,778 — — 1,306 57,084 
Total business loans secured by real estate2,651,305 — — 6,039 2,657,344 
Commercial loans
Commercial and industrial1,722,499 122 31 22,111 1,744,763 
Franchise non-real estate secured351,944 — — — 351,944 
SBA not secured by real estate9,133 — — 555 9,688 
Total commercial loans2,083,576 122 31 22,666 2,106,395 
Retail loans
Single family residential70,993 — — — 70,993 
Consumer loans2,241 — — — 2,241 
Total retail loans73,234 — — — 73,234 
Loans held for investment before basis adjustment (1)
$13,632,461 $649 $31 $30,271 $13,663,412 

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 $53.1 million and $61.9 million to the carrying amount of certain loans included in fair value hedging relationships as of June 30, 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
June 30, 2023
Investor loans secured by real estate
CRE non-owner-occupied$1,566 $— $— $— $1,566 $1,566 
SBA secured by real estate505 — — — 505 505 
Total investor loans secured by real estate2,071 — — — 2,071 2,071 
Business loans secured by real estate
CRE owner-occupied8,984 — — — 8,984 8,984 
SBA secured by real estate1,306 — — — 1,306 1,306 
Total business loans secured by real estate10,290 — — — 10,290 10,290 
Commercial loans
Commercial and industrial4,235 4,000 — — 4,235 235 
SBA non-real estate secured555 — — — 555 555 
Total commercial loans4,790 4,000 — — 4,790 790 
Total nonaccrual loans$17,151 $4,000 $— $— $17,151 $13,151 
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 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 Six Months Ended
June 30, 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 estate$851 

The following table describes the financial effect of the loan modification made for the borrower experiencing financial difficulty during the six months ended June 30, 2023:
Term Extension
Business loans secured by real estate
CRE owner-occupied
Extended term by 4 months
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
June 30, 2023
Investor loan secured by real estate
CRE non-owner-occupied$1,129 $— $437 $— $— $— $— $— $1,566 
SBA secured by real estate— — — — 505 — — — 505 
Total investor loans secured by real estate1,129 — 437 — 505 — — — 2,071 
Business loans secured by real estate
CRE owner-occupied4,251 — — 4,733 — — — — 8,984 
SBA secured by real estate— 1,111 195 — — — — — 1,306 
Total business loans secured by real estate4,251 1,111 195 4,733 — — — — 10,290 
Commercial loans
Commercial and industrial— — — 235 — — — 4,000 4,235 
SBA non-real estate secured— — — — — — — 555 555 
Total commercial loans— — — 235 — — — 4,555 4,790 
Total collateral dependent loans$5,380 $1,111 $632 $4,968 $505 $— $— $4,555 $17,151 
(Dollars in thousands)Office PropertiesIndustrial PropertiesRetail PropertiesLand PropertiesHotel PropertiesMultifamily PropertiesOther CRE PropertiesBusiness AssetsTotal
December 31, 2022
Investor loan secured by real estate
CRE non-owner-occupied$— $— $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