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Loans Held for Investment (Tables)
 12 Months Ended
Dec. 31, 2023
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)20232022
Investor loans secured by real estate
CRE non-owner-occupied$2,421,772 $2,660,321 
Multifamily5,645,310 6,112,026 
Construction and land472,544 399,034 
SBA secured by real estate36,400 42,135 
Total investor loans secured by real estate8,576,026 9,213,516 
Business loans secured by real estate
CRE owner-occupied2,191,334 2,432,163 
Franchise real estate secured304,514 378,057 
SBA secured by real estate50,741 61,368 
Total business loans secured by real estate2,546,589 2,871,588 
Commercial loans
Commercial and industrial1,790,608 2,160,948 
Franchise non-real estate secured319,721 404,791 
SBA non-real estate secured10,926 11,100 
Total commercial loans2,121,255 2,576,839 
Retail loans
Single family residential72,752 72,997 
Consumer1,949 3,284 
Total retail loans74,701 76,281 
Loans held for investment before basis adjustment (1)
13,318,571 14,738,224 
Basis adjustment associated with fair value hedge (2)
(29,551)(61,926)
Loans held for investment13,289,020 14,676,298 
Allowance for credit losses for loans held for investment(192,471)(195,651)
Loans held for investment, net$13,096,549 $14,480,647 
Total unfunded loan commitments$1,703,470 $2,489,203 
Loans held for sale, at lower of cost or fair value$— $2,643 
____________________________________________________
(1) Includes net deferred origination fees of $74,000 and $1.9 million, and unaccreted fair value net purchase discounts of $43.3 million and $54.8 million as of December 31, 2023 and 2022, 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.
Schedule 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 December 31, 2023:
Term Loans by Vintage
(Dollars in thousands)20232022202120202019PriorRevolvingRevolving Converted to Term During the PeriodTotal
December 31, 2023
Investor loans secured by real estate
CRE non-owner-occupied
Pass$71,452 $482,045 $549,828 $192,399 $315,139 $795,856 $— $— $2,406,719 
Special mention— 3,811 2,530 — — 625 — — 6,966 
Substandard— 412 — — — 7,675 — — 8,087 
Multifamily
Pass179,055 1,184,329 2,008,126 725,123 822,411 714,638 — — 5,633,682 
Special mention— — — — — 11,628 — — 11,628 
Construction and land
Pass59,993 309,677 94,845 2,223 2,368 3,438 — — 472,544 
SBA secured by real estate
Pass— 6,478 — 493 4,804 16,496 — — 28,271 
Substandard— — 131 — 536 7,462 — — 8,129 
Total investor loans secured by real estate310,500 1,986,752 2,655,460 920,238 1,145,258 1,557,818 — — 8,576,026 
Current period gross charge-offs— — 217 — 1,582 3,653 — — 5,452 
Business loans secured by real estate
CRE owner-occupied
Pass19,014 543,413 660,967 224,333 211,283 458,975 — — 2,117,985 
Special mention— 16,535 — 476 4,775 11,775 919 — 34,480 
Substandard— 15,539 2,162 5,505 3,873 11,790 — — 38,869 
Franchise real estate secured
Pass10,580 39,239 124,424 25,697 15,731 72,342 — — 288,013 
Special mention1,758 3,603 1,903 — 795 1,615 — — 9,674 
Substandard— 3,964 — — 2,571 292 — — 6,827 
SBA secured by real estate
Pass113 9,334 7,634 1,979 4,109 22,417 — — 45,586 
Special mention— 536 — — — 83 — — 619 
Substandard— — — — — 4,536 — — 4,536 
Total loans secured by business real estate31,465 632,163 797,090 257,990 243,137 583,825 919 — 2,546,589 
Current period gross charge-offs— — 318 191 — 1,861 — — 2,370 
Commercial loans
Commercial and industrial
Pass46,765 172,987 160,275 40,988 110,526 146,310 966,733 6,518 1,651,102 
Special mention239 23,242 12,270 367 16 2,139 42,570 407 81,250 
Substandard425 8,052 2,689 588 173 1,138 26,462 14,187 53,714 
Doubtful and loss— — — — — — — 4,542 4,542 
Franchise non-real estate secured
Pass6,801 74,441 112,112 16,355 34,770 53,957 — 753 299,189 
Special mention433 845 1,633 — 627 692 — — 4,230 
Substandard— 1,646 322 2,324 10,451 1,559 — — 16,302 
Term Loans by Vintage
(Dollars in thousands)20232022202120202019PriorRevolvingRevolving Converted to Term During the PeriodTotal
December 31, 2023
SBA non-real estate secured
Pass1,075 4,485 343 113 1,464 2,490 — — 9,970 
Substandard— 527 — 141 53 235 — — 956 
Total commercial loans55,738 286,225 289,644 60,876 158,080 208,520 1,035,765 26,407 2,121,255 
Current period gross charge-offs132 3,053 62 5 362 37 6,387 503 10,541 
Retail loans
Single family residential
Pass20 — — 167 — 44,104 28,461 — 72,752 
Consumer loans
Pass— — 3 9 5 788 1,144 — 1,949 
Total retail loans20 — 3 176 5 44,892 29,605 — 74,701 
Current period gross charge-offs— — — — — 983 3 — 986 
Loans held for investment before basis adjustment (1)
$397,723 $2,905,140 $3,742,197 $1,239,280 $1,546,480 $2,395,055 $1,066,289 $26,407 $13,318,571 
Total current period gross charge-offs$132 $3,053 $597 $196 $1,944 $6,534 $6,390 $503 $19,349 
______________________________
(1) Excludes the basis adjustment of $29.6 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, 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 estate$1,948,392 $2,954,826 $1,034,449 $1,268,038 $590,859 $1,416,489 $— $463 $9,213,516 
Term Loans by Vintage
(Dollars in thousands)20222021202020192018PriorRevolvingRevolving Converted to Term During the PeriodTotal
December 31, 2022
Business loans secured by real estate
CRE owner-occupied
Pass$593,826 $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 
Doubtful and loss— — — — — — — —— 
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.
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, 2023
Investor loans secured by real estate
CRE non-owner-occupied$2,421,360 $— $— $412 $2,421,772 
Multifamily5,645,310 — — — 5,645,310 
Construction and land472,544 — — — 472,544 
SBA secured by real estate35,980 — — 420 36,400 
Total investor loans secured by real estate8,575,194 — — 832 8,576,026 
Business loans secured by real estate
CRE owner-occupied2,186,679 — — 4,655 2,191,334 
Franchise real estate secured304,222 292 — — 304,514 
SBA secured by real estate50,604 137 — — 50,741 
Total business loans secured by real estate2,541,505 429 — 4,655 2,546,589 
Commercial loans
Commercial and industrial1,788,855 228 1,294 231 1,790,608 
Franchise non-real estate secured318,162 1,559 — — 319,721 
SBA not secured by real estate10,119 249 — 558 10,926 
Total commercial loans2,117,136 2,036 1,294 789 2,121,255 
Retail loans
Single family residential72,733 19 — — 72,752 
Consumer loans1,949 — — — 1,949 
Total retail loans74,682 19 — — 74,701 
Loans held for investment before basis adjustment (1)
$13,308,517 $2,484 $1,294 $6,276 $13,318,571 
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 $29.6 million and $61.9 million to the carrying amount of certain loans included in fair value hedging relationships as of December 31, 2023 and 2022, respectively. Refer to Note 19 – Derivative Instruments for additional information.
Schedule 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, 2023
Investor loans secured by real estate
CRE non-owner-occupied$412 $— $— $— $412 $412 
SBA secured by real estate1,205 — — — 1,205 1,205 
Total investor loans secured by real estate1,617 — — — 1,617 1,617 
Business loans secured by real estate
CRE owner-occupied8,666 — — — 8,666 8,666 
Total business loans secured by real estate8,666 — — — 8,666 8,666 
Commercial loans
Commercial and industrial1,381 — 12,595 — 13,976 13,976 
SBA non-real estate secured558 — — — 558 558 
Total commercial loans1,939 — 12,595 — 14,534 14,534 
Total nonaccrual loans$12,222 $— $12,595 $— $24,817 $24,817 
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 MLTBs
The following table shows the amortized cost of the MLTBs 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:
Twelve Months Ended
Year Ended December 31, 2023
Other-than-Insignificant Payment Delay
(Dollars in thousands)Balance
Percent of Total Class of Loans
Commercial loans
Commercial and industrial$12,595 0.70 %
Total commercial loans$12,595 

The following table describes the financial effect of the loan modification made for the borrower experiencing financial difficulty during the year ended December 31, 2023:
Other-than-Insignificant Payment Delay
Commercial loans
Commercial and industrial
1 year of interest-only payments
The following table depicts the performance of the MLTB as of the date indicated:
Days Past Due
(Dollars in thousands)Current30-5960-8990+Total
December 31, 2023
Commercial loans
Commercial and industrial$12,595 $— $— $— $12,595 
Total commercial loans$12,595 $— $— $— $12,595 
Schedule of Collateral Dependent Loans by Collateral Type The following tables summarize collateral dependent loans by collateral type as of the dates indicated:
(Dollars in thousands)Office PropertiesIndustrial PropertiesRetail PropertiesLand PropertiesHotel PropertiesMultifamily PropertiesOther CRE PropertiesBusiness AssetsTotal
December 31, 2023
Investor loan secured by real estate
CRE non-owner-occupied$— $— $412 $— $— $— $— $— $412 
SBA secured by real estate— — — — 1,205 — — — 1,205 
Total investor loans secured by real estate— — 412 — 1,205 — — — 1,617 
Business loans secured by real estate
CRE owner-occupied4,011 — — 4,655 — — — — 8,666 
Total business loans secured by real estate4,011 — — 4,655 — — — — 8,666 
Commercial loans
Commercial and industrial— — — 231 — — — 1,150 1,381 
SBA non-real estate secured— — — — — — — 558 558 
Total commercial loans— — — 231 — — — 1,708 1,939 
Total collateral dependent loans$4,011 $— $412 $4,886 $1,205 $— $— $1,708 $12,222 
December 31, 2022
Investor loan secured by real estate
CRE non-owner-occupied$— $— $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