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Loans Held for Investment (Tables)
 3 Months Ended
Mar. 31, 2024
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)20242023
Investor loans secured by real estate
CRE non-owner-occupied$2,309,252 $2,421,772 
Multifamily5,558,966 5,645,310 
Construction and land486,734 472,544 
SBA secured by real estate35,206 36,400 
Total investor loans secured by real estate8,390,158 8,576,026 
Business loans secured by real estate
CRE owner-occupied2,149,362 2,191,334 
Franchise real estate secured294,938 304,514 
SBA secured by real estate48,426 50,741 
Total business loans secured by real estate2,492,726 2,546,589 
Commercial loans
Commercial and industrial1,774,487 1,790,608 
Franchise non-real estate secured301,895 319,721 
SBA non-real estate secured10,946 10,926 
Total commercial loans2,087,328 2,121,255 
Retail loans
Single family residential72,353 72,752 
Consumer1,830 1,949 
Total retail loans74,183 74,701 
Loans held for investment before basis adjustment (1)
13,044,395 13,318,571 
Basis adjustment associated with fair value hedge (2)
(32,324)(29,551)
Loans held for investment13,012,071 13,289,020 
Allowance for credit losses for loans held for investment(192,340)(192,471)
Loans held for investment, net$12,819,731 $13,096,549 
Total unfunded loan commitments$1,459,515 $1,703,470 
Loans held for sale, at lower of cost or fair value$— $— 
______________________________
(1) Includes net deferred origination costs (fees) of $797,000 and $(74,000), and unaccreted fair value net purchase discounts of $41.2 million and $43.3 million as of March 31, 2024 and December 31, 2023, 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 Investments by Origination Year and 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, 2024:
Term Loans by Vintage
(Dollars in thousands)20242023202220212020PriorRevolvingRevolving Converted to Term During the PeriodTotal
March 31, 2024
Investor loans secured by real estate
CRE non-owner-occupied
Pass$25,930 $39,449 $456,670 $530,041 $174,446 $1,044,831 $— $— $2,271,367 
Special mention— — 4,190 2,509 — — — — 6,699 
Substandard— — 2,785 — 16,209 12,192 — — 31,186 
Multifamily
Pass2,332 183,941 1,172,758 1,965,579 708,447 1,478,920 — — 5,511,977 
Special mention— — — 18,303 — 11,576 — — 29,879 
Substandard— — — 4,603 12,507 — — — 17,110 
Construction and land
Pass7,234 62,758 319,264 91,445 2,226 3,376 — — 486,303 
Special mention— — — 431 — — — — 431 
SBA secured by real estate
Pass— — 6,451 — 493 20,541 — — 27,485 
Substandard— — — 131 — 7,590 — — 7,721 
Total investor loans secured by real estate35,496 286,148 1,962,118 2,613,042 914,328 2,579,026 — — 8,390,158 
Current period gross charge-offs— — — — — 1,180 — — 1,180 
Business loans secured by real estate
CRE owner-occupied
Pass9,310 21,215 541,542 615,237 217,548 651,272 — — 2,056,124 
Special mention— — 6,349 36,625 472 4,863 918 — 49,227 
Substandard— — 9,815 — 9,455 24,741 — — 44,011 
Franchise real estate secured
Pass1,225 10,497 41,473 120,949 25,369 88,080 — — 287,593 
Special mention— — — — — 1,597 — — 1,597 
Substandard— — 3,929 — — 1,819 — — 5,748 
SBA secured by real estate
Pass— 112 9,827 7,350 1,949 24,669 — — 43,907 
Special mention— — — — — 82 — — 82 
Substandard— — — — — 4,437 — — 4,437 
Total loans secured by business real estate10,535 31,824 612,935 780,161 254,793 801,560 918 — 2,492,726 
Current period gross charge-offs— 93 3,345 581 — 645 — — 4,664 
Commercial loans
Commercial and industrial
Pass6,427 49,636 156,868 148,942 38,675 244,163 975,215 825 1,620,751 
Special mention— 1,027 22,364 13,948 335 2,162 34,604 1,312 75,752 
Substandard— 14,289 8,052 2,735 406 1,248 47,145 — 73,875 
Doubtful
— — 4,109 — — — — — 4,109 
Term Loans by Vintage
(Dollars in thousands)20242023202220212020PriorRevolvingRevolving Converted to Term During the PeriodTotal
March 31, 2024
Franchise non-real estate secured
Pass$69 $7,789 $72,481 $107,807 $15,807 $81,601 $— $— $285,554 
Special mention— — — — — 648 — — 648 
Substandard— — 1,600 306 2,189 11,598 — — 15,693 
SBA non-real estate secured
Pass— 1,582 4,415 338 111 3,701 — — 10,147 
Substandard— — 515 — 138 146 — — 799 
Total commercial loans6,496 74,323 270,404 274,076 57,661 345,267 1,056,964 2,137 2,087,328 
Current period gross charge-offs— 49 — 126 29 16 465 — 685 
Retail loans
Single family residential
Pass— 20 — — 165 43,288 28,880 — 72,353 
Consumer loans
Pass— — — 2 8 425 1,395 — 1,830 
Total retail loans— 20 — 2 173 43,713 30,275 — 74,183 
Current period gross charge-offs— — — — — — — — — 
Loans held for investment before basis adjustment (1)
$52,527 $392,315 $2,845,457 $3,667,281 $1,226,955 $3,769,566 $1,088,157 $2,137 $13,044,395 
Total current period gross charge-offs$— $142 $3,345 $707 $29 $1,841 $465 $— $6,529 
______________________________
(1) Excludes the basis adjustment of $32.3 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, 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 $— $— $28,271 
Substandard— — 131 — 536 7,462 — — 8,129 
Total investor loans secured by real estate310,500 1,986,752 2,655,460 920,238 1,145,258 1,557,818 — — 8,576,026 
Term Loans by Vintage
(Dollars in thousands)20232022202120202019PriorRevolvingRevolving Converted to Term During the PeriodTotal
December 31, 2023
Current period gross charge-offs$— $— $217 $— $1,582 $3,653 $— $— $5,452 
Business loans secured by real estate
CRE owner-occupied
Pass19,014 543,413 660,967 224,333 211,283 458,975 — — 2,117,985 
Special mention— 16,535 — 476 4,775 11,775 919 — 34,480 
Substandard— 15,539 2,162 5,505 3,873 11,790 — — 38,869 
Franchise real estate secured
Pass10,580 39,239 124,424 25,697 15,731 72,342 — — 288,013 
Special mention1,758 3,603 1,903 — 795 1,615 — — 9,674 
Substandard— 3,964 — — 2,571 292 — — 6,827 
SBA secured by real estate
Pass113 9,334 7,634 1,979 4,109 22,417 — — 45,586 
Special mention— 536 — — — 83 — — 619 
Substandard— — — — — 4,536 — — 4,536 
Total loans secured by business real estate31,465 632,163 797,090 257,990 243,137 583,825 919 — 2,546,589 
Current period gross charge-offs— — 318 191 — 1,861 — — 2,370 
Commercial loans
Commercial and industrial
Pass46,765 172,987 160,275 40,988 110,526 146,310 966,733 6,518 1,651,102 
Special mention239 23,242 12,270 367 16 2,139 42,570 407 81,250 
Substandard425 8,052 2,689 588 173 1,138 26,462 14,187 53,714 
Doubtful and loss— — — — — — — 4,542 4,542 
Franchise non-real estate secured
Pass6,801 74,441 112,112 16,355 34,770 53,957 — 753 299,189 
Special mention433 845 1,633 — 627 692 — — 4,230 
Substandard— 1,646 322 2,324 10,451 1,559 — — 16,302 
SBA non-real estate secured
Pass1,075 4,485 343 113 1,464 2,490 — — 9,970 
Substandard— 527 — 141 53 235 — — 956 
Total commercial loans55,738 286,225 289,644 60,876 158,080 208,520 1,035,765 26,407 2,121,255 
Current period gross charge-offs132 3,053 62 5 362 37 6,387 503 10,541 
Retail loans
Single family residential
Pass20 — — 167 — 44,104 28,461 — 72,752 
Consumer loans
Pass— — 3 9 5 788 1,144 — 1,949 
Total retail loans20 — 3 176 5 44,892 29,605 — 74,701 
Current period gross charge-offs$— $— $— $— $— $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 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(2)
(Dollars in thousands)Current30-5960-8990+Total
March 31, 2024
Investor loans secured by real estate
CRE non-owner-occupied$2,308,852 $— $— $400 $2,309,252 
Multifamily5,558,966 — — — 5,558,966 
Construction and land486,734 — — — 486,734 
SBA secured by real estate34,409 — 381 416 35,206 
Total investor loans secured by real estate8,388,961 — 381 816 8,390,158 
Business loans secured by real estate
CRE owner-occupied2,144,734 — — 4,628 2,149,362 
Franchise real estate secured294,646 — — 292 294,938 
SBA secured by real estate48,426 — — — 48,426 
Total business loans secured by real estate2,487,806 — — 4,920 2,492,726 
Commercial loans
Commercial and industrial1,770,803 1,729 575 1,380 1,774,487 
Franchise non-real estate secured300,336 — — 1,559 301,895 
SBA not secured by real estate10,146 254 — 546 10,946 
Total commercial loans2,081,285 1,983 575 3,485 2,087,328 
Retail loans
Single family residential72,335 — 18 — 72,353 
Consumer loans1,830 — — — 1,830 
Total retail loans74,165 — 18 — 74,183 
Loans held for investment before basis adjustment (1)
$13,032,217 $1,983 $974 $9,221 $13,044,395 

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 
______________________________
(1) Excludes the basis adjustment of $32.3 million and $29.6 million to the carrying amount of certain loans included in fair value hedging relationships as of March 31, 2024 and December 31, 2023, respectively. Refer to Note 11 – Derivative Instruments for additional information.
(2) Nonaccrual loans are included in this aging analysis based on the loan’s past due status.
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
March 31, 2024
Investor loans secured by real estate
CRE non-owner-occupied$24,008 $2,657 $— $— $24,008 $17,499 
SBA secured by real estate1,258 — — — 1,258 1,258 
Total investor loans secured by real estate25,266 2,657 — — 25,266 18,757 
Business loans secured by real estate
CRE owner-occupied12,602 — — — 12,602 12,602 
Franchise real estate secured— — 292 43 292 — 
Total business loans secured by real estate12,602 — 292 43 12,894 12,602 
Commercial loans
Commercial and industrial1,380 — 22,161 1,521 23,541 13,541 
Franchise non-real estate secured— — 1,559 231 1,559 — 
SBA non-real estate secured546 — — — 546 546 
Total commercial loans1,926 — 23,720 1,752 25,646 14,087 
Total nonaccrual loans$39,794 $2,657 $24,012 $1,795 $63,806 $45,446 
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 
______________________________
(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 the total class of loans at and during the three months ended March 31, 2023:
Three Months Ended
March 31, 2023
Term Extension
(Dollars in thousands)Balance
Percent 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 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 MLTBs as of the dates indicated:
Days Past Due
(Dollars in thousands)Current30-5960-8990+Total
March 31, 2024
Commercial loans
Commercial and industrial$12,161 $— $— $— $12,161 
Total commercial loans$12,161 $— $— $— $12,161 
March 31, 2023
Business loans secured by real estate
CRE owner-occupied$851 $— $— $— $851 
Total business loans secured by real estate$851 $— $— $— $851 
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, 2024
Investor loan secured by real estate
CRE non-owner-occupied$19,102 $2,385 $400 $— $— $— $2,121 $— $24,008 
SBA secured by real estate— — — — 1,258 — — — 1,258 
Total investor loans secured by real estate19,102 2,385 400 — 1,258 — 2,121 — 25,266 
Business loans secured by real estate
CRE owner-occupied7,974 — — 4,628 — — — — 12,602 
SBA secured by real estate— — — — — — — — — 
Total business loans secured by real estate7,974 — — 4,628 — — — — 12,602 
Commercial loans
Commercial and industrial— — — 230 — — — 1,150 1,380 
SBA non-real estate secured— — — — — — — 546 546 
Total commercial loans— — — 230 — — — 1,696 1,926 
Total collateral dependent loans$27,076 $2,385 $400 $4,858 $1,258 $— $2,121 $1,696 $39,794 
December 31, 2023
Investor loan secured by real estate
CRE non-owner-occupied$— $— $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