XML 30 R14.htm IDEA: XBRL DOCUMENT v3.22.0.1
Allowance for Credit Losses
 12 Months Ended
Dec. 31, 2021
Receivables [Abstract]  
Allowance for Credit Losses Allowance for Credit Losses 
Allowance for Credit Losses Methodology

In accordance with CECL, the ACL represents management's estimate of lifetime credit losses for assets within its scope, specifically loans and leases and unfunded commitments. To calculate the ACL, management uses models to estimate the PD and LGD for loans utilizing inputs that include forecasted future economic conditions and that are dependent upon specific macroeconomic variables relevant to each of the Bank's loan and lease portfolios. Moody's Analytics, a third party, provided the historical and forward-looking macroeconomic data utilized in the models used to calculate the ACL.

For ACL calculation purposes, the Bank considered the financial and economic environment at the time of assessment and economic scenarios that differed in the levels of severity and sensitivity to the ACL results. At each measurement date, the Bank selects the scenario that reflects its view of future economic conditions and is determined to be the most probable outcome.

All forecasts are updated for each variable where applicable and incorporated as relevant into the ACL calculation. Actual credit loss results and the timing thereof will differ from the estimate of credit losses, either in a strong economy or a recession, as the portfolio will change through time due to growth, risk mitigation actions and other factors. In addition, the scenarios used will differ and change through time as economic conditions change. Economic scenarios might not capture deterioration or improvement in the economy timely enough for the Bank to be able to adequately address the impact to the ACL.

Select macroeconomic variables are projected over the forecast period, and they could have a material impact in determining the ACL. As the length of the forecast period increases, information about the future becomes less readily available and projections are inherently less certain.
The following is a discussion of the changes in the factors that influenced management's current estimate of expected credit losses. The changes in the ACL estimate for all portfolio segments, during the year ended December 31, 2021, were primarily related to changes in the economic assumptions. The Bank opted to use Moody's Analytics' November consensus economic forecast for estimating the ACL as of December 31, 2021. This scenario is based on Moody's Analytics' review of a variety of surveys of baseline forecasts of the U.S. economy. These surveys vary in date of latest vintage, number of updates per year, list of variables forecast, duration of forecast, frequency of data (quarterly or annual), and the number of respondents. In the preparation of the Moody's Analytics consensus forecast, the focus is on the next three to five years, since that is the most typical duration in the surveyed results. Moody's Analytics' approach is to give greater consideration to the most recently produced forecasts, since they will include the most up-to-date historical information, and to those variables for which the number of surveyed responses is largest.

In the consensus scenario selected, the probability that the economy will perform better than this consensus is equal to the probability that it will perform worse and included the following factors:
•U.S. real GDP average annualized growth of 4.1% through 2022, decreasing to 2.3% in 2023;
•U.S. unemployment rate average of 4.1% in 2022, dropping to 4.0% in 2023;
•COVID infections abate in December 2021;
•Federal Reserve to keep the target range for the Fed Funds rate at 0% to 0.25% until Q4 2022.

The Bank uses an additional scenario that differs in terms of severity within the variables, both favorable and unfavorable, to assess the sensitivity in the ACL results and to inform qualitative adjustments. The Bank selected the Moody's Analytics November S2 scenario for this analysis. In the scenario selected, there is a 75% probability that the economy will perform better, broadly speaking, and a 25% probability that it will perform worse; and the additional scenario includes the following factors:
•The stimulus is less effective than expected because of slower consumer spending. More of the funds end up in savings, and thus fiscal multipliers are smaller than assumed in the consensus scenario;
•New cases, hospitalizations and deaths from COVID-19 diminish more slowly than anticipated, with fewer people than anticipated receiving vaccines, and concerns about resistant strains arise;
•U.S. real GDP average annualized growth of 2.1% through 2022, increasing to 2.3% in 2023;
•U.S. unemployment rate average of 5.6% in 2022, dropping to 4.3% in 2023;
•COVID infections abate in March 2022;
•Federal Reserve to keep target range for the Fed Funds rate near 0% until mid-2024.
The results using the comparison scenario for sensitivity analysis were reviewed by management and were considered when evaluating the qualitative factor adjustments.

The ACL is measured on a collective (pool) basis when similar characteristics exist. The Company has selected models at the portfolio level using a risk-based approach, with larger, more complex portfolios having more complex models. Except as noted below, the macroeconomic variables that are inputs to the models are reasonable and supportable over the life of the loans in that they reasonably project the key economic variables in the near term and then converge to a long run equilibrium trend. These models produce reasonable and supportable estimates of loss over the life of the loans as the projected credit losses will also converge to a steady state in line with the variables applied. The Company measures the ACL using the following methods:

Commercial Real Estate: Non-owner occupied commercial real estate, multifamily, and construction loans are analyzed using a model that uses four primary property variables: net operating income, property value, property type, and location. For PD estimation, the model simulates potential future paths of net operating income given commercial real estate market factors determined from macroeconomic and regional commercial real estate forecasts. Using the resulting expected debt service coverage ratios, together with predicted loan-to-values and other variables, the model estimates PD from the range of conditional possibilities. In addition, the model estimates maturity PD capturing refinance default risk to produce a total PD for the loan. The model estimates LGD, inclusive of principal loss and liquidation expenses, empirically using predicted loan-to-value as well as certain market and other factors. The LGD calculation also includes a separate maturity risk component. The primary economic drivers in the model are GDP growth, U.S. unemployment rate, and 10-Year Treasury yield. These economic drivers are translated into a forecast provided by Moody's Analytics' REIS of real estate metrics, such as rental rates, vacancies, and cap rates. The model produces PD and LGD on a quarter-by-quarter basis for the life of loan.

The owner-occupied commercial real-estate portfolio utilizes a top-down macroeconomic model using linear regression. This model produces portfolio level quarterly net charge-off rates for 10 years and carries forward the last quarter's expected loss percentage projection to remaining periods. The primary economic drivers for this model are the 7-year A vs Aa corporate bond spread and S&P 500 corporate after-tax profits.

Commercial: Non-homogeneous commercial loans and leases and residential development loans are analyzed in a multi-step process. An initial PD is estimated using a model driven by an obligor's selected financial statement ratios, together with cycle-adjusting information based on the obligor's state and industry. An initial LGD is derived separately based on collateral type using collateral value and a haircut to reflect the loss in liquidation. Another model then applies an auto-regression technique to the initial PD and LGD metrics to estimate the PD and LGD curves according to the macroeconomic scenario over a one-year reasonable and supportable forecast. The primary economic drivers in the model are the S&P 500 Stock Price Index, S&P 500 Market Volatility Index, U.S. unemployment rate, as well as appropriate yield curves and credit spreads. This model utilizes output reversion methodology, which, after one year, reverts on a straight-line basis over two years to long-term PD estimated using financial statement ratios of each obligor.

The model for the homogeneous lease and equipment finance agreement portfolio uses lease and equipment finance agreement information, such as origination and performance, as well as macroeconomic variables to calculate PD and LGD values. The PD calculation is based on survival analysis while LGD is calculated using a two-step regression. The model calculates LGD using an estimate of the probability that a defaulted lease or equipment finance agreement will have a loss, and an estimate of the loss amount. The primary economic drivers for the model are GDP, U.S. unemployment rate, and a home price growth index. The model produces PD and LGD curves at the lease or equipment finance agreement level for each month in the forecast horizon.

Residential: The models for residential real estate and home equity lines of credit utilize loan level variables, such as origination and performance, as well as macroeconomic variables to calculate PD and LGD. The U.S. unemployment rate and home price growth rate indexes are primary economic drivers in both the residential real estate and HELOC models. In addition, the prime rate is also a primary driver in the HELOC model. The models focus on establishing an empirical relationship between default probabilities and a set of loan-level, borrower, and macroeconomic credit risk drivers. The LGD calculation for residential real estate is based on an estimate of the probability that a defaulted loan will have a loss, and then an estimate of the loss amount. HELOCs utilize the same model using residential real estate LGD values to assign loans to cohorts based on FICO scores and loan age. The model produces PD and LGD curves at the loan level for each quarter in the forecast horizon.
Consumer: Historical net charge-off information as well as economic forecast assumptions are used to project loss rates for the Consumer segment.

All loans and leases that have not been modeled receive a loss rate via an extrapolated rate methodology. The loans and leases receiving an extrapolated rate are typically newly originated loans and leases or loans and leases without the granularity of data necessary to be modeled. Based on the vintage year, credit classification, and reporting category of the modeled loans and leases, a loss factor is calculated and applied to the non-modeled loans and leases.

Along with the quantitative factors produced by the above models, management also considers prepayment speeds and qualitative factors when determining the ACL. The Company uses a prepayment model that forecasts the constant prepayment rates based on institution specific data for the commercial real estate, commercial and consumer portfolios and a forward curve approach that changes with macro-economic input variables for the residential portfolio. Below are the nine qualitative factors considered where applicable:

•Changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere in estimating credit losses.
•Changes in national, regional, and local economic and business conditions and developments that affect the collectability of the portfolio, including the condition of various market segments.
•Changes in the nature and volume of the portfolio and in the terms of loans and leases.
•Changes in the experience, ability, and depth of lending management and other relevant staff.
•Changes in the volume and severity of past due loans and leases, the volume of non-accrual loans and leases, and the volume and severity of adversely classified or graded loans and leases.
•Changes in the quality of the Bank's credit review system.
•Changes in the value of the underlying collateral for collateral-dependent loans and leases.
•The existence and effect of any concentrations of credit, and changes in the level of such concentrations.
•The effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the Bank's existing portfolio.

The Company evaluated each qualitative factor as of December 31, 2021, and made qualitative overlay adjustments of approximately $17.1 million to increase the amounts indicated by the models as considered necessary to adequately reflect the significant changes in credit conditions and overall portfolio risk.

Loss factors from the models, prepayment speeds, and qualitative factors are input into the Company's CECL accounting application which aggregates the information. The Company then uses two methods to calculate the current expected credit loss: 1) the discounted cash flow method, which is used for all loans except lines of credit and 2) the non-discounted cash flow method which is used for lines of credit due to difficulty of calculating an effective interest rate when lines have yet to be drawn on. The DCF method utilizes the effective interest rate of individual assets to discount the expected credit losses adjusted for prepayments. The difference in the net present value and the amortized cost of the asset will result in the required allowance. The non-discounted cash flow method uses the exposure at default, along with the expected credit losses adjusted for prepayments to calculate the required allowance.
The following tables summarize activity related to the allowance for credit losses by portfolio segment as of December 31, 2021 and 2020:
December 31, 2021
(in thousands)Commercial Real EstateCommercialResidentialConsumer & OtherTotal
Allowance for credit losses on loans and leases
Balance, beginning of period$141,710 $150,864 $27,964 $7,863 $328,401 
(Recapture) provision for credit losses on loans and leases(42,136)10,431 250 (3,677)(35,132)
Charge-offs(1,144)(54,425)(70)(3,658)(59,297)
Recoveries645 10,703 924 2,168 14,440 
Net (charge-offs) recoveries(499)(43,722)854 (1,490)(44,857)
Balance, end of period$99,075 $117,573 $29,068 $2,696 $248,412 
Reserve for unfunded commitments
Balance, beginning of period$15,360 $2,190 $1,661 $1,075 $20,286 
(Recapture) provision for credit losses on unfunded commitments(6,899)(162)296 (754)(7,519)
Balance, end of period8,461 2,028 1,957 321 12,767 
Total allowance for credit losses$107,536 $119,601 $31,025 $3,017 $261,179 

December 31, 2020
(in thousands)Commercial Real EstateCommercialResidentialConsumer & OtherTotal
Allowance for credit losses on loans and leases
Balance, beginning of period$50,847 $73,820 $24,714 $8,248 $157,629 
Impact of CECL adoption5,077 44,009 2,099 (1,186)49,999 
Adjusted balance, beginning of period55,924 117,829 26,813 7,062 207,628 
Provision (recapture) for credit losses on loans and leases86,186 101,478 (190)4,401 191,875 
Charge-offs(1,413)(76,488)(521)(6,074)(84,496)
Recoveries1,013 8,045 1,862 2,474 13,394 
Net (charge-offs) recoveries(400)(68,443)1,341 (3,600)(71,102)
Balance, end of period$141,710 $150,864 $27,964 $7,863 $328,401 
Reserve for unfunded commitments
Balance, beginning of period$534 $2,539 $149 $1,884 $5,106 
Impact of CECL adoption4,030 (487)1,267 (1,572)3,238 
Adjusted balance, beginning of period4,564 2,052 1,416 312 8,344 
Provision for credit losses on unfunded commitments
10,796 138 245 763 11,942 
Balance, end of period15,360 2,190 1,661 1,075 20,286 
Total allowance for credit losses$157,070 $153,054 $29,625 $8,938 $348,687 
The following table presents the unfunded loan and lease commitments for the years ended December 31, 2021 and 2020: 
 (in thousands)
Total
December 31, 2021$6,971,443 
December 31, 2020$5,672,009 
 
Asset Quality and Non-Performing Loans and Leases

The Bank manages asset quality and controls credit risk through diversification of the loan and lease portfolio and the application of policies designed to promote sound underwriting and loan and lease monitoring practices. The Bank's Credit Quality Administration department is charged with monitoring asset quality, establishing credit policies and procedures and enforcing the consistent application of these policies and procedures across the Bank. Reviews of non-performing, past due loans and leases and larger credits, designed to identify potential charges to the allowance for credit losses, and to determine the adequacy of the allowance, are conducted on an ongoing basis. These reviews consider such factors as the financial strength of borrowers, the value of the applicable collateral, loan and lease loss experience, estimated loan and lease losses, growth in the loan and lease portfolio, prevailing economic conditions and other factors.

Loans and Leases Past Due and Non-Accrual Loans and Leases  

Typically, loans in a non-accrual status will not have an allowance for credit loss as they will be written down to their net realizable value or charged-off. However, the net realizable value for homogeneous leases and equipment finance agreements is determined by the LGD calculated by the CECL model and therefore leases and equipment finance agreements on non-accrual will have an allowance for credit losses until they become 181 days past due, at which time they are charged-off. The Company recognized no interest income on non-accrual loans and leases during the year ended December 31, 2021.

Due to the deterioration of the U.S. economy resulting from the COVID-19 pandemic, the Company had an increase in loan payment deferral and forbearance requests. Once a deferral or forbearance request is received, a late charge waiver is put in place and payments are suspended for an agreed-upon period. Accrued and unpaid interest during the deferral period will be collected upon the expiration of the deferral or on a regular repayment schedule at the end of the deferral period. For certain loan types, the maturity date may be extended to allow for full amortization. In accordance with various government-mandated programs, these loans are generally classified based on their past due status prior to their deferral period; as such, they are classified as performing loans that accrue interest. As of December 31, 2021, loans of approximately $119.0 million are currently deferred under various federal and state guidelines and are classified as current as their contractual payments have been deferred. These deferred loans do not include deferrals of delinquent repurchased GNMA loans as the credit risk of these loans are guaranteed by government programs such as Federal Housing Agency, Veterans Affairs, and USDA Rural Development. At December 31, 2021, approximately $89.8 million of GNMA repurchased loans were on deferral. At December 31, 2020, the Bank had $355.5 million in deferred loans under various federal and state guidelines, excluding GNMA repurchased loans on deferral of $177.7 million.
 
The following tables present the carrying value of the loans and leases past due, by loan and lease class, as of December 31, 2021 and 2020: 
December 31, 2021
(in thousands)Greater than 30 to 59 Days Past Due60 to 89 Days Past DueGreater than 90 Days and AccruingTotal Past Due
Non-Accrual (1)
Current
Total Loans and Leases
Commercial real estate       
Non-owner occupied term, net$388 $1,138 $— $1,526 $3,384 $3,781,977 $3,786,887 
Owner occupied term, net101 65 1 167 2,383 2,329,872 2,332,422 
Multifamily, net— — — — — 4,051,202 4,051,202 
Construction & development, net— — — — — 890,338 890,338 
Residential development, net— — — — — 206,990 206,990 
Commercial
Term, net4,627 2,345 4 6,976 4,225 2,997,272 3,008,473 
Lines of credit & other, net300 2 357 659 — 910,074 910,733 
Leases & equipment finance, net6,806 8,951 3,799 19,556 8,873 1,439,247 1,467,676 
Residential 
Mortgage, net
802 3,668 27,249 31,719 — 4,485,547 4,517,266 
Home equity loans & lines, net1,214 491 732 2,437 — 1,194,733 1,197,170 
Consumer & other, net396 386 194 976 — 183,047 184,023 
Total, net of deferred fees and costs$14,634 $17,046 $32,336 $64,016 $18,865 $22,470,299 $22,553,180 
(1) Loans and leases on non-accrual with an amortized cost basis of $18.9 million had a related allowance for credit losses of $7.5 million at December 31, 2021.
December 31, 2020
(in thousands)Greater than 30 to 59 Days Past Due60 to 89 Days Past DueGreater than 90 Days and AccruingTotal Past Due
Non-Accrual (1)
Current
Total Loans and Leases
Commercial real estate       
Non-owner occupied term, net$1,214 $21,309 $815 $23,338 $3,809 $3,478,655 $3,505,802 
Owner occupied term, net182 103 208 493 5,984 2,327,468 2,333,945 
Multifamily, net— 215 — 215 — 3,348,981 3,349,196 
Construction & development, net3,991 — — 3,991 — 824,487 828,478 
Residential development, net— — — — — 192,761 192,761 
Commercial
Term, net562 — 4 566 2,205 4,021,696 4,024,467 
Lines of credit & other, net1,491 2,667 7 4,165 336 858,259 862,760 
Leases & equipment finance, net14,242 18,220 4,796 37,258 18,742 1,400,630 1,456,630 
Residential
Mortgage, net
1,587 3,912 27,713 33,212 — 3,838,694 3,871,906 
Home equity loans & lines, net844 544 2,463 3,851 — 1,132,213 1,136,064 
Consumer & other, net678 286 355 1,319 — 216,039 217,358 
Total, net of deferred fees and costs$24,791 $47,256 $36,361 $108,408 $31,076 $21,639,883 $21,779,367 
(1) Loans and leases on non-accrual with an amortized cost basis of $31.1 million had a related allowance for credit losses of $16.7 million at December 31, 2020.

Collateral Dependent Loans and Leases

Loans are classified as collateral dependent when it is probable that the Bank will be unable to collect the scheduled payments of principal and interest when due, and repayment is expected to be provided substantially through the operation or sale of the collateral. The following table summarizes the amortized cost basis of the collateral dependent loans and leases by the type of collateral securing the assets as of December 31, 2021. There have been no significant changes in the level of collateralization from the prior periods.
(in thousands)Residential Real EstateCommercial Real EstateGeneral Business AssetsOtherTotal
Commercial real estate
Non-owner occupied term, net$— $3,104 $— $— $3,104 
Owner occupied term, net— 2,034 — — 2,034 
Commercial
Term, net980 520 626 1,695 3,821 
Line of credit & other, net— — — 1 1 
Leases & equipment finance, net— — 8,873 — 8,873 
Residential
Mortgage, net31,569 — — — 31,569 
Home equity loans & lines, net3,032 — — — 3,032 
Total net of deferred fees and costs$35,581 $5,658 $9,499 $1,696 $52,434 
Troubled Debt Restructuring 
 
At December 31, 2021 and 2020, troubled debt restructured loans of $6.7 million and $15.0 million, respectively, were classified as accruing TDR loans. The TDRs were granted in response to borrower financial difficulties, and generally provide for a temporary modification of loan repayment terms. In order for a new TDR loan to be considered for accrual status, the loan's collateral coverage generally will be greater than or equal to 100% of the loan balance, the loan is current on payments, and the borrower must either prefund an interest reserve or demonstrate the ability to make payments from a verified source of cash flow.

There were no available commitments for troubled debt restructuring outstanding as of December 31, 2021 and 2020.

The following tables present TDR loans by accrual versus non-accrual status and by portfolio segment as of December 31, 2021 and 2020: 
December 31, 2021
(in thousands)Accrual StatusNon-Accrual StatusTotal Modification# of Contracts
Commercial real estate, net$1,031 $59 $1,090 5 
Residential, net5,641 — 5,641 35 
Consumer & other, net22 — 22 3 
Total, net of deferred fees and costs$6,694 $59 $6,753 43 
 
December 31, 2020
(in thousands)Accrual StatusNon-Accrual StatusTotal Modification# of Contracts
Commercial real estate, net$1,345 $289 $1,634 7 
Commercial, net1,231 — 1,231 1 
Residential, net12,415 — 12,415 75 
Total, net of deferred fees and costs$14,991 $289 $15,280 83 

The following table presents loans that were determined to be TDRs during the years ended December 31, 2021 and 2020:  
(in thousands)20212020
Commercial, net$— $8,508 
Residential, net6,711 15,397 
Consumer & other, net36 74 
Total, net of deferred fees and costs$6,747 $23,979 
  
For the periods presented in the table above, the outstanding recorded investment was the same pre and post modification and all modifications were combination modifications. There were no loans modified as troubled debt restructuring within the previous 12 months for which there was a payment default during the year ended December 31, 2021. There were $1.3 million in loans modified as troubled debt restructuring within the previous 12 months for which there was a payment default during the year ended December 31, 2020.

Credit Quality Indicators
Management regularly reviews loans and leases in the portfolio to assess credit quality indicators and to determine appropriate loan classification and grading. In addition, the board reviews and approves the credit quality indicators each year. The Bank differentiates its lending portfolios into homogeneous and non-homogeneous loans and leases. Homogeneous loans and leases are risk rated on a single risk rating scale based on the past due status of the loan or lease.
The Bank's risk rating methodology for its non-homogeneous loans and leases uses a dual risk rating approach to assess the credit risk. This approach uses two scales to provide a comprehensive assessment of credit default risk and recovery risk. The probability of default scale measures a borrower's credit default risk using risk ratings ranging from 1 to 16, where a higher rating represents higher risk. For non-homogeneous loans and leases, PD ratings of 1 through 9 are "pass" grades, while PD ratings of 10 and 11 are "watch" grades. PD ratings of 12-16 correspond to the regulatory-defined categories of special mention (12), substandard (13-14), doubtful (15), and loss (16). The loss given default scale measures the amount of loss that may not be recovered in the event of a default, using six alphabetic ratings from A-F, where a higher rating represents higher risk. The LGD scale quantifies recovery risk associated with an event of default and predicts the amount of loss that would be incurred on a loan or lease if a borrower were to experience a major default and includes variables that may be external to the borrower, such as industry, geographic location, and credit cycle stage. It could also include variables specific to the borrower such as their probability of default and bankruptcies as well as variables specific to the loan or lease, including collateral valuation, covenant structure and debt type. The product of the borrower's PD and a loan or lease LGD is the loan or lease expected loss, expressed as a percentage. This provides a common language of credit risk across different loans.

The PD scale estimates the likelihood that a borrower will experience a major default on any of its debt obligations within a specified time period. Examples of major defaults include payments 90 days or more past due, non-accrual classification, bankruptcy filing, or a full or partial charge-off of a loan or lease. As such, the PD scale represents the credit quality indicator for non-homogeneous loans and leases.

The credit quality indicator rating categories follow regulatory classification and can be generally described by the following groupings for loans and leases:

Pass/Watch—A pass loan or lease is a loan or lease with a credit risk level acceptable to the Bank for extending credit and maintaining normal credit monitoring. A watch loan or lease is considered pass rated but has a heightened level of unacceptable default risk due to an emerging risk element or declining performance trend. Watch ratings are expected to be temporary, with issues resolved or manifested to the extent that a higher or lower risk rating would be appropriate within a short period of time.

Special Mention—A special mention loan or lease has potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the institution's credit position at some future date. These borrowers have an elevated probability of default but not to the point of a substandard classification.

Substandard—A substandard asset is inadequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged, if any. Assets classified as substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected.

Doubtful—Loans or leases classified as doubtful have all the weaknesses inherent in those classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, based on currently existing facts, conditions, and values, highly questionable and improbable.

Loss—Loans or leases classified as loss are considered uncollectible and of such little value that their continuance as bankable assets is not warranted.
The following tables represent the amortized costs basis of the loans and leases by credit classification and vintage year by loan and lease class of financing receivable as of December 31, 2021:
(in thousands)Term Loans Amortized Cost Basis by Origination YearRevolving Loans Amortized Cost BasisRevolving to Non-Revolving Loans Amortized Cost
December 31, 2021
20212020201920182017PriorTotal
Commercial real estate:
Non-owner occupied term, net
Credit quality indicator:
Pass/Watch$901,230 $434,875 $618,879 $431,098 $308,872 $942,501 $1,313 $3,679 $3,642,447 
Special mention— 1,311 1,411 12,252 844 38,268 — — 54,086 
Substandard19,270 2,214 2,605 53,312 2,990 9,641 — — 90,032 
Doubtful— — — — — 78 — — 78 
Loss— — — — — 244 — — 244 
Total non-owner occupied term, net$920,500 $438,400 $622,895 $496,662 $312,706 $990,732 $1,313 $3,679 $3,786,887 
Owner occupied term, net
Credit quality indicator:
Pass/Watch$594,677 $237,814 $369,483 $245,707 $227,201 $601,934 $5,017 $737 $2,282,570 
Special mention— — 7,445 10,739 4,936 12,219 — — 35,339 
Substandard— 897 674 1,815 — 10,697 — — 14,083 
Doubtful— — — — — — — — — 
Loss— — — — — 430 — — 430 
Total owner occupied term, net$594,677 $238,711 $377,602 $258,261 $232,137 $625,280 $5,017 $737 $2,332,422 
Multifamily, net
Credit quality indicator:
Pass/Watch$1,700,221 $380,506 $748,207 $346,192 $334,688 $510,385 $26,475 $2,931 $4,049,605 
Special mention— — — — — 1,597 — — 1,597 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total multifamily, net$1,700,221 $380,506 $748,207 $346,192 $334,688 $511,982 $26,475 $2,931 $4,051,202 
Construction & development, net
Credit quality indicator:
Pass/Watch$264,489 $310,207 $237,435 $48,911 $18,375 $136 $2,382 $— $881,935 
Special mention— — — — — — — — — 
Substandard— — — 8,403 — — — — 8,403 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total construction & development, net$264,489 $310,207 $237,435 $57,314 $18,375 $136 $2,382 $— $890,338 
Residential development, net
Credit quality indicator:
Pass/Watch$28,744 $15,623 $— $— $— $— $156,587 $6,036 $206,990 
Special mention— — — — — — — — — 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total residential development, net$28,744 $15,623 $— $— $— $— $156,587 $6,036 $206,990 
Total commercial real estate$3,508,631 $1,383,447 $1,986,139 $1,158,429 $897,906 $2,128,130 $191,774 $13,383 $11,267,839 
(in thousands)Term Loans Amortized Cost Basis by Origination YearRevolving Loans Amortized Cost BasisRevolving to Non-Revolving Loans Amortized Cost
December 31, 2021
20212020201920182017PriorTotal
Commercial:
Term, net
Credit quality indicator:
Pass/Watch$1,102,310 $306,969 $200,352 $179,217 $206,405 $215,105 $699,230 $14,075 $2,923,663 
Special mention— 4,454 97 28,971 587 825 27,909 1,501 64,344 
Substandard1,217 9,827 — 1,095 2,648 1,264 — 3,189 19,240 
Doubtful— — — — 809 — — — 809 
Loss— — — 417 — — — — 417 
Total term, net$1,103,527 $321,250 $200,449 $209,700 $210,449 $217,194 $727,139 $18,765 $3,008,473 
Lines of credit & other, net
Credit quality indicator:
Pass/Watch$31,836 $9,170 $16,529 $10,945 $334 $1,605 $812,207 $8,498 $891,124 
Special mention— — — — — — 8,830 752 9,582 
Substandard714 414 — — — 1,118 3,238 4,540 10,024 
Doubtful— — — — — — 1 — 1 
Loss— — — — — — 1 1 2 
Total lines of credit & other, net$32,550 $9,584 $16,529 $10,945 $334 $2,723 $824,277 $13,791 $910,733 
Leases & equipment finance, net
Credit quality indicator:
Pass/Watch$599,301 $325,379 $282,101 $138,627 $43,950 $38,965 $— $— $1,428,323 
Special mention2,512 1,965 1,782 1,690 572 130 — — 8,651 
Substandard4,280 7,333 2,682 1,448 578 160 — — 16,481 
Doubtful3,781 3,232 3,238 1,343 663 636 — — 12,893 
Loss614 258 187 84 179 6 — — 1,328 
Total leases & equipment finance, net$610,488 $338,167 $289,990 $143,192 $45,942 $39,897 $— $— $1,467,676 
Total commercial$1,746,565 $669,001 $506,968 $363,837 $256,725 $259,814 $1,551,416 $32,556 $5,386,882 
Residential:
Mortgage, net
Credit quality indicator:
Pass/Watch$2,252,704 $606,671 $585,923 $190,673 $209,990 $639,585 $— $— $4,485,546 
Special mention372 — 555 81 632 2,830 — — 4,470 
Substandard— 1,379 4,430 1,147 3,098 15,692 — — 25,746 
Doubtful— — — — — — — — — 
Loss— — 907 — — 597 — — 1,504 
Total mortgage, net$2,253,076 $608,050 $591,815 $191,901 $213,720 $658,704 $— $— $4,517,266 
Home equity loans & lines, net
Credit quality indicator:
Pass/Watch$972 $— $— $18 $— $10,973 $1,151,063 $31,708 $1,194,734 
Special mention— — — — — 102 1,355 248 1,705 
Substandard— — — — — 96 280 213 589 
Doubtful— — — — — — — — — 
Loss— — — — — 36 42 64 142 
Total home equity loans & lines, net$972 $— $— $18 $— $11,207 $1,152,740 $32,233 $1,197,170 
Total residential$2,254,048 $608,050 $591,815 $191,919 $213,720 $669,911 $1,152,740 $32,233 $5,714,436 
(in thousands)Term Loans Amortized Cost Basis by Origination YearRevolving Loans Amortized Cost BasisRevolving to Non-Revolving Loans Amortized Cost
December 31, 2021
20212020201920182017PriorTotal
Consumer & other, net:
Credit quality indicator:
Pass/Watch$15,375 $10,955 $12,167 $5,395 $3,983 $5,070 $128,264 $1,835 $183,044 
Special mention— 23 41 1 113 113 391 101 783 
Substandard— 3 15 — 17 25 55 71 186 
Doubtful— — — — — — — — — 
Loss— — — — — 7 3 — 10 
Total consumer & other, net$15,375 $10,981 $12,223 $5,396 $4,113 $5,215 $128,713 $2,007 $184,023 
Grand total$7,524,619 $2,671,479 $3,097,145 $1,719,581 $1,372,464 $3,063,070 $3,024,643 $80,179 $22,553,180 

The following tables represent the amortized costs basis of the loans and leases by credit classification and vintage year by loan and lease class of financing receivable as of December 31, 2020:
(in thousands)Term Loans Amortized Cost Basis by Origination YearRevolving Loans Amortized Cost BasisRevolving to Non-Revolving Loans Amortized Cost
December 31, 202020202019201820172016PriorTotal
Commercial real estate:
Non-owner occupied term, net
Credit quality indicator:
Pass/Watch$496,412 $677,975 $489,350 $379,691 $338,257 $932,207 $2,855 $4,139 $3,320,886 
Special mention13,281 1,432 40,899 2,800 31,699 27,167 — — 117,278 
Substandard3,129 2,668 19,951 3,062 19,806 18,586 — — 67,202 
Doubtful— — — — — 103 — — 103 
Loss— — — — — 333 — — 333 
Total non-owner occupied term, net$512,822 $682,075 $550,200 $385,553 $389,762 $978,396 $2,855 $4,139 $3,505,802 
Owner occupied term, net
Credit quality indicator:
Pass/Watch$284,698 $414,715 $321,900 $344,606 $257,969 $610,893 $6,270 $783 $2,241,834 
Special mention3,641 8,373 13,143 7,365 3,425 18,386 — — 54,333 
Substandard2,657 1,694 9,868 2,846 4,356 14,609 282 975 37,287 
Doubtful— — — — — 61 — — 61 
Loss— — — — — 430 — — 430 
Total owner occupied term, net$290,996 $424,782 $344,911 $354,817 $265,750 $644,379 $6,552 $1,758 $2,333,945 
(in thousands)Term Loans Amortized Cost Basis by Origination YearRevolving Loans Amortized Cost BasisRevolving to Non-Revolving Loans Amortized Cost
December 31, 202020202019201820172016PriorTotal
Multifamily, net
Credit quality indicator:
Pass/Watch$383,871 $870,871 $593,076 $574,185 $276,108 $618,031 $23,282 $2,956 $3,342,380 
Special mention— — — — — 6,601 — — 6,601 
Substandard— — — 215 — — — — 215 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total multifamily, net$383,871 $870,871 $593,076 $574,400 $276,108 $624,632 $23,282 $2,956 $3,349,196 
Construction & development, net
Credit quality indicator:
Pass/Watch$146,012 $283,052 $255,449 $127,564 $— $372 $— $— $812,449 
Special mention1,637 — 14,392 — — — — — 16,029 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total construction & development, net$147,649 $283,052 $269,841 $127,564 $— $372 $— $— $828,478 
Residential development, net
Credit quality indicator:
Pass/Watch$17,188 $2,571 $2,151 $— $— $— $163,320 $2,507 $187,737 
Special mention— — — — — — 5,024 — 5,024 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total residential development, net$17,188 $2,571 $2,151 $— $— $— $168,344 $2,507 $192,761 
Total commercial real estate$1,352,526 $2,263,351 $1,760,179 $1,442,334 $931,620 $2,247,779 $201,033 $11,360 $10,210,182 
Commercial:
Term, net
Credit quality indicator:
Pass/Watch$2,146,758 $294,576 $323,744 $240,458 $67,502 $226,137 $626,878 $29,598 $3,955,651 
Special mention4,859 548 13,395 1,265 273 1,416 1,036 2,259 25,051 
Substandard251 1,105 24,845 7,259 1,137 561 — 8,029 43,187 
Doubtful— — — — — 578 — — 578 
Loss— — — — — — — — — 
Total term, net$2,151,868 $296,229 $361,984 $248,982 $68,912 $228,692 $627,914 $39,886 $4,024,467 
Lines of credit & other, net
Credit quality indicator:
Pass/Watch$27,503 $27,395 $26,731 $548 $1,679 $531 $709,606 $5,578 $799,571 
Special mention4,033 — — 1 77 299 42,882 271 47,563 
Substandard501 472 — 195 377 940 6,958 6,177 15,620 
Doubtful— — — — — — 4 — 4 
Loss— — — — — — 1 1 2 
Total lines of credit & other, net$32,037 $27,867 $26,731 $744 $2,133 $1,770 $759,451 $12,027 $862,760 
(in thousands)Term Loans Amortized Cost Basis by Origination YearRevolving Loans Amortized Cost BasisRevolving to Non-Revolving Loans Amortized Cost
December 31, 202020202019201820172016PriorTotal
Leases & equipment finance, net
Credit quality indicator:
Pass/Watch$502,305 $442,692 $239,551 $125,619 $64,400 $7,619 $— $— $1,382,186 
Special mention2,321 4,918 7,765 3,797 1,983 99 — — 20,883 
Substandard6,999 7,193 11,617 1,945 2,081 157 — — 29,992 
Doubtful2,615 8,255 4,834 2,880 1,343 79 — — 20,006 
Loss101 1,481 1,015 635 309 22 — — 3,563 
Total leases & equipment finance, net$514,341 $464,539 $264,782 $134,876 $70,116 $7,976 $— $— $1,456,630 
Total commercial$2,698,246 $788,635 $653,497 $384,602 $141,161 $238,438 $1,387,365 $51,913 $6,343,857 
Residential:
Mortgage, net
Credit quality indicator:
Pass/Watch$809,232 $1,136,220 $393,041 $406,069 $424,270 $669,862 $— $— $3,838,694 
Special mention— 397 286 688 946 3,183 — — 5,500 
Substandard335 1,398 1,822 4,133 6,381 11,113 — — 25,182 
Doubtful— — — — — — — — — 
Loss— 1,314 — — — 1,216 — — 2,530 
Total mortgage, net$809,567 $1,139,329 $395,149 $410,890 $431,597 $685,374 $— $— $3,871,906 
Home equity loans & lines, net
Credit quality indicator:
Pass/Watch$40 $— $20 $— $259 $16,575 $1,077,753 $37,008 $1,131,655 
Special mention— — — — — 211 1,537 198 1,946 
Substandard— — — — — 43 254 233 530 
Doubtful— — — — — — — — — 
Loss— — — — — 182 1,107 644 1,933 
Total home equity loans & lines, net$40 $— $20 $— $259 $17,011 $1,080,651 $38,083 $1,136,064 
Total residential$809,607 $1,139,329 $395,169 $410,890 $431,856 $702,385 $1,080,651 $38,083 $5,007,970 
Consumer & other, net:
Credit quality indicator:
Pass/Watch$24,408 $22,802 $11,372 $4,170 $2,582 $4,101 $143,813 $2,789 $216,037 
Special mention— 95 79 27 28 3 660 74 966 
Substandard— 25 — — 2 — 205 110 342 
Doubtful— — — — — — — — — 
Loss— — — — — 10 3 — 13 
Total consumer & other, net$24,408 $22,922 $11,451 $4,197 $2,612 $4,114 $144,681 $2,973 $217,358 
Grand total$4,884,787 $4,214,237 $2,820,296 $2,242,023 $1,507,249 $3,192,716 $2,813,730 $104,329 $21,779,367