Allowance for Credit Losses

3 Months Ended

Mar. 31, 2022

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 three months ended March 31, 2022, were primarily related to changes in the economic assumptions. Because of the uncertain economic environment due to Russia's military conflict in Ukraine causing global oil prices to increase, continued supply-chain issues, and increasing interest rates, the Bank opted to use Moody's Analytics' March baseline economic forecast for estimating the ACL as of March 31, 2022.

In the baseline scenario selected, the probability that the economy will perform better than this baseline is equal to the probability that it will perform worse and included the following factors:

•U.S. real GDP average annualized growth of 3.5% in 2022, decreasing to 3.1% in 2023;

•U.S. unemployment average rate of 3.6% for 2022, dropping to 3.4% in 2023;

•COVID-19 infections abate in March 2022;

•The Federal Reserve is expected to increase the federal funds rate consistently throughout 2022 and 2023, reaching a long-run equilibrium of 2.5% by the end of 2024.

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' March 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 scenario includes the following factors:

•The military conflict between Russia and Ukraine persists longer than anticipated. As a result, worries remain elevated that there could be a major interruption of global oil supplies. This causes oil prices to rise more than in the baseline and thereby increases inflationary pressures. Higher gasoline prices cut into disposable income that would otherwise be available for other spending;

•Supply-chain issues also worsen, increasing shortages of affected goods, also boosting inflation;

•New cases, hospitalizations and deaths from COVID-19 start to rise again, slowing growth in spending on air travel, retail, and hotels;

•U.S real GDP average annualized growth of 2.3% through 2022, decreasing to 1.4% in 2023;

•Unemployment begins to increase again in the second quarter of 2022;

•The economy returns to full employment more slowly than in the baseline, by the fourth quarter of 2023.

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 March 31, 2022, and made qualitative overlay adjustments of approximately $20.1 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 for the three months ended March 31, 2022 and 2021:

	Three Months Ended March 31, 2022
(in thousands)	Commercial Real Estate		Commercial		Residential		Consumer & Other		Total
Allowance for credit losses on loans and leases
Balance, beginning of period	$	99,075	$	117,573	$	29,068	$	2,696	$	248,412
(Recapture) provision for credit losses for loans and leases	(7,462)		8,812		2,872		1,474		5,696
Charge-offs	—		(7,858)		(167)		(885)		(8,910)
Recoveries	25		2,545		173		623		3,366
Net recoveries (charge-offs)	25		(5,313)		6		(262)		(5,544)
Balance, end of period	$	91,638	$	121,072	$	31,946	$	3,908	$	248,564
Reserve for unfunded commitments
Balance, beginning of period	8,461		2,028		1,957		321		12,767
Provision (recapture) for credit losses on unfunded commitments	277		(408)		236		46		151
Balance, end of period	8,738		1,620		2,193		367		12,918
Total allowance for credit losses	$	100,376	$	122,692	$	34,139	$	4,275	$	261,482

	Three Months Ended March 31, 2021
(in thousands)	Commercial Real Estate		Commercial		Residential		Consumer & Other		Total
Allowance for credit losses on loans and leases
Balance, beginning of period	$	141,710	$	150,864	$	27,964	$	7,863	$	328,401
Provision (recapture) for credit losses for loans and leases	12,426		(4,503)		(6,912)		(485)		526
Charge-offs	(41)		(19,614)		(70)		(1,190)		(20,915)
Recoveries	380		2,091		108		692		3,271
Net recoveries (charge-offs)	339		(17,523)		38		(498)		(17,644)
Balance, end of period	$	154,475	$	128,838	$	21,090	$	6,880	$	311,283
Reserve for unfunded commitments
Balance, beginning of period	$	15,360	$	2,190	$	1,661	$	1,075	$	20,286
Provision (recapture) for credit losses on unfunded commitments	308		(389)		(373)		(72)		(526)
Balance, end of period	15,668		1,801		1,288		1,003		19,760
Total allowance for credit losses	$	170,143	$	130,639	$	22,378	$	7,883	$	331,043

The following table presents the unfunded commitments for the period ended March 31, 2022 and 2021:

(in thousands)	Total
Unfunded loan and lease commitments
March 31, 2022	$	7,387,402
March 31, 2021	$	5,809,620

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 three months ended March 31, 2022 and 2021.

The following tables present the carrying value of the loans and leases past due, by loan and lease class, as of March 31, 2022 and December 31, 2021:

	March 31, 2022
(in thousands)	Greater than 30 to 59 Days Past Due		60 to 89 Days Past Due		90 Days or More and Accruing		Total Past Due		Non-Accrual (1)		Current		Total Loans and Leases
Commercial real estate
Non-owner occupied term, net	$	94	$	—	$	—	$	94	$	3,351	$	3,881,339	$	3,884,784
Owner occupied term, net	253		—		1		254		2,599		2,325,046		2,327,899
Multifamily, net	—		—		—		—		—		4,323,633		4,323,633
Construction & development, net	10,710		—		—		10,710		—		929,576		940,286
Residential development, net	—		—		—		—		—		195,308		195,308
Commercial
Term, net	1,021		339		—		1,360		4,256		2,766,590		2,772,206
Lines of credit & other, net	352		24		8		384		—		871,099		871,483
Leases & equipment finance, net	12,551		7,029		—		19,580		8,159		1,456,513		1,484,252
Residential
Mortgage, net	4,983		2,546		21,683		29,212		—		4,719,054		4,748,266
Home equity loans & lines, net	1,483		292		1,479		3,254		—		1,247,448		1,250,702
Consumer & other, net	462		270		111		843		—		176,099		176,942
Total, net of deferred fees and costs	$	31,909	$	10,500	$	23,282	$	65,691	$	18,365	$	22,891,705	$	22,975,761

(1) Loans and leases on non-accrual with an amortized cost basis of $18.4 million had a related allowance for credit losses of $7.2 million at March 31, 2022.

	December 31, 2021
(in thousands)	Greater than 30 to 59 Days Past Due		60 to 89 Days Past Due		90 Days or More and Accruing		Total Past Due		Non-Accrual (1)		Current and Other		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, net	101		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, net	4,627		2,345		4		6,976		4,225		2,997,272		3,008,473
Lines of credit & other, net	300		2		357		659		—		910,074		910,733
Leases & equipment finance, net	6,806		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, net	1,214		491		732		2,437		—		1,194,733		1,197,170
Consumer & other, net	396		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.

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 March 31, 2022. There have been no significant changes in the level of collateralization from the prior periods.

(in thousands)	Residential Real Estate		Commercial Real Estate		General Business Assets		Other		Total
Commercial real estate
Non-owner occupied term, net	$	—	$	3,088	$	—	$	—	$	3,088
Owner occupied term, net	—		2,270		—		—		2,270
Commercial
Term, net	974		520		852		1,502		3,848
Line of credit & other, net	—		—		1		—		1
Leases & equipment finance, net	—		—		8,159		—		8,159
Residential
Mortgage, net	38,088		—		—		—		38,088
Home equity loans & lines, net	3,044		—		—		—		3,044
Total net of deferred fees and costs	$	42,106	$	5,878	$	9,012	$	1,502	$	58,498

Troubled Debt Restructuring

At March 31, 2022 and December 31, 2021, troubled debt restructured loans of $8.4 million and $6.7 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.

The following tables present TDR loans by accrual versus non-accrual status and by portfolio segment as of March 31, 2022 and December 31, 2021:

	March 31, 2022
(in thousands)	Accrual Status		Non-Accrual Status		Total Modification		# of Contracts
Commercial real estate, net	$	999	$	53	$	1,052	5
Residential, net	7,387		—		7,387		42
Consumer & other, net	19		—		19		2
Total, net of deferred fees and costs	$	8,405	$	53	$	8,458	49
	December 31, 2021
(in thousands)	Accrual Status		Non-Accrual Status		Total Modification		# of Contracts
Commercial real estate, net	$	1,031	$	59	$	1,090	5
Residential, net	5,641		—		5,641		35
Consumer & other, net	22		—		22		3
Total, net of deferred fees and costs	$	6,694	$	59	$	6,753	43

The following table presents loans that were determined to be TDRs during the three months ended March 31, 2022 and 2021:

	Three Months Ended
(in thousands)	March 31, 2022		March 31, 2021
Residential, net	$	2,797	$	1,710
Consumer & other, net	—		27
Total, net of deferred fees and costs	$	2,797	$	1,737

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 loan or lease is inadequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged, if any. Loans and leases 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 March 31, 2022 and December 31, 2021:

(in thousands)		Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized Cost Basis		Revolving to Non-Revolving Loans Amortized Cost
	March 31, 2022	2022		2021		2020		2019		2018		Prior						Total
Commercial real estate:
Non-owner occupied term, net
Credit quality indicator:
	Pass/Watch	$	229,840	$	898,610	$	428,769	$	609,626	$	435,395	$	1,175,122	$	980	$	3,660	$	3,782,002
	Special mention	914		—		379		—		8,105		13,127		—		—		22,525
	Substandard	—		19,176		1,990		2,590		44,843		10,446		—		968		80,013
	Doubtful	—		—		—		—		—		—		—		—		—
	Loss	—		—		—		—		—		244		—		—		244
Total non-owner occupied term, net		$	230,754	$	917,786	$	431,138	$	612,216	$	488,343	$	1,198,939	$	980	$	4,628	$	3,884,784
Owner occupied term, net
Credit quality indicator:
	Pass/Watch	$	112,979	$	572,565	$	230,865	$	361,545	$	237,044	$	765,477	$	4,686	$	724	$	2,285,885
	Special mention	—		—		—		6,947		9,938		11,529		—		—		28,414
	Substandard	—		—		1,286		660		837		10,358		—		—		13,141
	Doubtful	—		—		—		—		—		29		—		—		29
	Loss	—		—		—		—		—		430		—		—		430
Total owner occupied term, net		$	112,979	$	572,565	$	232,151	$	369,152	$	247,819	$	787,823	$	4,686	$	724	$	2,327,899
Multifamily, net
Credit quality indicator:
	Pass/Watch	$	491,891	$	1,707,002	$	373,988	$	733,701	$	285,983	$	698,237	$	28,073	$	2,925	$	4,321,800
	Special mention	—		—		—		—		—		1,833		—		—		1,833
	Substandard	—		—		—		—		—		—		—		—		—
	Doubtful	—		—		—		—		—		—		—		—		—
	Loss	—		—		—		—		—		—		—		—		—
Total multifamily, net		$	491,891	$	1,707,002	$	373,988	$	733,701	$	285,983	$	700,070	$	28,073	$	2,925	$	4,323,633
Construction & development, net
Credit quality indicator:
	Pass/Watch	$	15,750	$	337,635	$	311,778	$	198,534	$	45,077	$	18,417	$	2,385	$	—	$	929,576
	Special mention	—		—		—		10,710		—		—		—		—		10,710
	Substandard	—		—		—		—		—		—		—		—		—
	Doubtful	—		—		—		—		—		—		—		—		—
	Loss	—		—		—		—		—		—		—		—		—
Total construction & development, net		$	15,750	$	337,635	$	311,778	$	209,244	$	45,077	$	18,417	$	2,385	$	—	$	940,286
Residential development, net
Credit quality indicator:
	Pass/Watch	$	5,557	$	30,570	$	14,004	$	—	$	—	$	—	$	142,450	$	2,727	$	195,308
	Special mention	—		—		—		—		—		—		—		—		—
	Substandard	—		—		—		—		—		—		—		—		—
	Doubtful	—		—		—		—		—		—		—		—		—
	Loss	—		—		—		—		—		—		—		—		—
Total residential development, net		$	5,557	$	30,570	$	14,004	$	—	$	—	$	—	$	142,450	$	2,727	$	195,308
Total commercial real estate		$	856,931	$	3,565,558	$	1,363,059	$	1,924,313	$	1,067,222	$	2,705,249	$	178,574	$	11,004	$	11,671,910

(in thousands)		Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized Cost Basis		Revolving to Non-Revolving Loans Amortized Cost
	March 31, 2022	2022		2021		2020		2019		2018		Prior						Total
Commercial:
Term, net
Credit quality indicator:
	Pass/Watch	$	111,977	$	930,465	$	241,252	$	181,648	$	162,649	$	350,859	$	676,393	$	13,003	$	2,668,246
	Special mention	—		—		648		70		1,867		30,925		—		1,278		34,788
	Substandard	1,117		—		8,412		—		27,647		4,439		23,200		3,020		67,835
	Doubtful	—		—		920		—		—		—		—		—		920
	Loss	—		—		—		—		417		—		—		—		417
Total term, net		$	113,094	$	930,465	$	251,232	$	181,718	$	192,580	$	386,223	$	699,593	$	17,301	$	2,772,206
Lines of credit & other, net
Credit quality indicator:
	Pass/Watch	$	7,481	$	24,632	$	6,594	$	16,060	$	9,692	$	1,462	$	774,199	$	8,940	$	849,060
	Special mention	—		—		—		—		—		—		13,334		181		13,515
	Substandard	—		946		—		—		—		1,111		3,288		3,563		8,908
	Doubtful	—		—		—		—		—		—		—		—		—
	Loss	—		—		—		—		—		—		—		—		—
Total lines of credit & other, net		$	7,481	$	25,578	$	6,594	$	16,060	$	9,692	$	2,573	$	790,821	$	12,684	$	871,483
Leases & equipment finance, net
Credit quality indicator:
	Pass/Watch	$	216,053	$	516,393	$	286,754	$	239,054	$	116,077	$	66,375	$	—	$	—	$	1,440,706
	Special mention	246		5,464		3,108		3,109		2,161		887		—		—		14,975
	Substandard	1,730		4,601		6,660		2,515		834		427		—		—		16,767
	Doubtful	—		3,330		2,877		2,342		1,372		435		—		—		10,356
	Loss	—		375		475		308		130		160		—		—		1,448
Total leases & equipment finance, net		$	218,029	$	530,163	$	299,874	$	247,328	$	120,574	$	68,284	$	—	$	—	$	1,484,252
Total commercial		$	338,604	$	1,486,206	$	557,700	$	445,106	$	322,846	$	457,080	$	1,490,414	$	29,985	$	5,127,941
Residential:
Mortgage, net
Credit quality indicator:
	Pass/Watch	$	468,454	$	2,284,376	$	518,940	$	517,505	$	165,150	$	764,629	$	—	$	—	$	4,719,054
	Special mention	—		748		1,351		691		81		4,658		—		—		7,529
	Substandard	—		567		1,449		2,747		1,834		11,573		—		—		18,170
	Doubtful	—		—		—		—		—		—		—		—		—
	Loss	—		—		—		1,877		—		1,636		—		—		3,513
Total mortgage, net		$	468,454	$	2,285,691	$	521,740	$	522,820	$	167,065	$	782,496	$	—	$	—	$	4,748,266
Home equity loans & lines, net
Credit quality indicator:
	Pass/Watch	$	174	$	710	$	—	$	—	$	18	$	10,005	$	1,204,909	$	31,632	$	1,247,448
	Special mention	—		—		—		—		—		133		1,212		430		1,775
	Substandard	—		—		—		—		—		104		894		346		1,344
	Doubtful	—		—		—		—		—		—		—		—		—
	Loss	—		—		—		—		—		32		103		—		135
Total home equity loans & lines, net		$	174	$	710	$	—	$	—	$	18	$	10,274	$	1,207,118	$	32,408	$	1,250,702
Total residential		$	468,628	$	2,286,401	$	521,740	$	522,820	$	167,083	$	792,770	$	1,207,118	$	32,408	$	5,998,968

(in thousands)		Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized Cost Basis		Revolving to Non-Revolving Loans Amortized Cost
	March 31, 2022	2022		2021		2020		2019		2018		Prior						Total
Consumer & other, net:
Credit quality indicator:
	Pass/Watch	$	8,489	$	10,539	$	9,596	$	10,302	$	4,579	$	7,660	$	122,707	$	2,225	$	176,097
	Special mention	—		7		10		38		—		222		377		79		733
	Substandard	—		—		—		25		—		—		30		46		101
	Doubtful	—		—		—		—		—		—		—		—		—
	Loss	—		—		—		—		1		7		3		—		11
Total consumer & other, net		$	8,489	$	10,546	$	9,606	$	10,365	$	4,580	$	7,889	$	123,117	$	2,350	$	176,942
Grand total		$	1,672,652	$	7,348,711	$	2,452,105	$	2,902,604	$	1,561,731	$	3,962,988	$	2,999,223	$	75,747	$	22,975,761

(in thousands)		Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized Cost Basis		Revolving to Non-Revolving Loans Amortized Cost
	December 31, 2021	2021		2020		2019		2018		2017		Prior						Total
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
	Substandard	19,270		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

(in thousands)		Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized Cost Basis		Revolving to Non-Revolving Loans Amortized Cost
	December 31, 2021	2021		2020		2019		2018		2017		Prior						Total
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
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
	Substandard	1,217		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
	Substandard	714		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 mention	2,512		1,965		1,782		1,690		572		130		—		—		8,651
	Substandard	4,280		7,333		2,682		1,448		578		160		—		—		16,481
	Doubtful	3,781		3,232		3,238		1,343		663		636		—		—		12,893
	Loss	614		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

(in thousands)		Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized Cost Basis		Revolving to Non-Revolving Loans Amortized Cost
	December 31, 2021	2021		2020		2019		2018		2017		Prior						Total
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 mention	372		—		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
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