Loans Receivable and Allowance for Credit Losses

6 Months Ended

Jun. 30, 2023

Receivables [Abstract]

Loans Receivable and Allowance for Credit Losses

Loans Receivable and Allowance for Credit Losses

Loans receivable at June 30, 2023 and December 31, 2022 are summarized as follows (in thousands):

	June 30, 2023		December 31, 2022
Mortgage loans:
Commercial	$	4,373,436	4,316,185
Multi-family	1,645,770		1,513,818
Construction	707,234		715,494
Residential	1,166,159		1,177,698
Total mortgage loans	7,892,599		7,723,195
Commercial loans	2,348,447		2,233,670
Consumer loans	301,306		304,780
Total gross loans	10,542,352		10,261,645
Premiums on purchased loans	1,374		1,380
Net deferred fees	(13,195)		(14,142)
Total loans	$	10,530,531	10,248,883

The following tables summarize the aging of loans receivable by portfolio segment and class of loans (in thousands):

	June 30, 2023
	30-59 Days		60-89 Days	Non-accrual	Recorded Investment > 90 days accruing	Total Past Due	Current	Total Loans Receivable	Non-accrual loans with no related allowance
Mortgage loans:
Commercial	$	1,445	1,137	7,279	—	9,861	4,363,575	4,373,436	4,276
Multi-family	3,853		—	2,314	—	6,167	1,639,603	1,645,770	2,314
Construction	—		—	1,874	—	1,874	705,360	707,234	1,874
Residential	1,427		1,171	1,698	—	4,296	1,161,863	1,166,159	1,698
Total mortgage loans	6,725		2,308	13,165	—	22,198	7,870,401	7,892,599	10,162
Commercial loans	3,021		90	31,885	—	34,996	2,313,451	2,348,447	19,504
Consumer loans	957		147	878	—	1,982	299,324	301,306	878
Total gross loans	$	10,703	2,545	45,928	—	59,176	10,483,176	10,542,352	30,544

	December 31, 2022
	30-59 Days		60-89 Days	Non-accrual	Recorded Investment > 90 days accruing	Total Past Due	Current	Total Loans Receivable	Non-accrual loans with no related allowance
Mortgage loans:
Commercial	$	2,300	412	28,212	—	30,924	4,285,261	4,316,185	22,961
Multi-family	790		—	1,565	—	2,355	1,511,463	1,513,818	1,565
Construction	905		1,097	1,878	—	3,880	711,614	715,494	1,878
Residential	1,411		1,114	1,928	—	4,453	1,173,245	1,177,698	1,928
Total mortgage loans	5,406		2,623	33,583	—	41,612	7,681,583	7,723,195	28,332
Commercial loans	964		1,014	24,188	—	26,166	2,207,504	2,233,670	21,156
Consumer loans	885		147	738	—	1,770	303,010	304,780	739
Total gross loans	$	7,255	3,784	58,509	—	69,548	10,192,097	10,261,645	50,227

Included in loans receivable are loans for which the accrual of interest income has been discontinued due to deterioration in the financial condition of the borrowers. The principal amounts of these non-accrual loans were $45.9 million and $58.5 million at June 30, 2023 and December 31, 2022, respectively. Included in non-accrual loans were $17.4 million and $42.9 million of loans which were less than 90 days past due at June 30, 2023 and December 31, 2022, respectively. There were no loans 90 days or greater past due and still accruing interest at June 30, 2023 and December 31, 2022.

The activity in the allowance for credit losses by portfolio segment for the three and six months ended June 30, 2023 and 2022 was as follows (in thousands):

Three months ended June 30,	Mortgage loans		Commercial loans	Consumer loans	Total
2023
Balance at beginning of period	$	63,195	27,117	2,446	92,758
Provision charge (benefit) to operations	6,742		3,769	(111)	10,400
Recoveries of loans previously charged-off	3		134	173	310
Loans charged-off	—		(1,313)	(82)	(1,395)
Balance at end of period	$	69,940	29,707	2,426	102,073
2022
Balance at beginning of period	$	50,096	23,799	2,380	76,275
Provision charge (benefit) to operations	5,593		(2,710)	117	3,000
Recoveries of loans previously charged-off	361		443	109	913
Loans charged-off	(986)		(145)	(41)	(1,172)
Balance at end of period	$	55,064	21,387	2,565	79,016

Six months ended June 30,	Mortgage loans		Commercial loans	Consumer loans	Total
2023
Balance at beginning of period	$	58,218	27,413	2,392	88,023
Cumulative effect of adopting Accounting Standards Update ("ASU") No. 2022-02	(510)		(43)	(41)	(594)
Provision charge (benefit) to operations	12,954		3,461	(15)	16,400
Recoveries of loans previously charged-off	6		301	258	565
Loans charged-off	(728)		(1,425)	(168)	(2,321)
Balance at end of period	$	69,940	29,707	2,426	102,073
2022
Balance at beginning of period	$	52,104	26,343	2,293	80,740
Provision charge (benefit) charge to operations	3,599		(7,115)	116	(3,400)
Recoveries of loans previously charged-off	371		2,304	275	2,950
Loans charged-off	(1,010)		(145)	(119)	(1,274)
Balance at end of period	$	55,064	21,387	2,565	79,016

For the three and six months ended June 30, 2023, the Company recorded a $10.4 million and a $16.4 million provision for credit losses on loans, respectively. The increase in provision was attributable to a worsened economic forecast and related deterioration in the projected commercial property price indices over the expected life of the loan portfolio within our CECL model.

The following table summarizes the Company's gross charge-offs recorded during the three months ended June 30, 2023 by year of origination (in thousands):

	2023		2022	2021	2020	2019	Prior to 2019	Total Loans
Commercial loans	$	—	—	—	—	—	1,313	1,313
Consumer loans (1)	4		—	—	—	—	3	7
Total gross loans	$	4	—	—	—	—	1,316	1,320

(1) During the three months ended June 30, 2023, charge-offs on consumer overdraft accounts totaled $75,000, which is not included in the table above.

The following table summarizes the Company's gross charge-offs recorded during the six months ended June 30, 2023 by year of origination (in thousands):

	2023		2022	2021	2020	2019	Prior to 2019	Total Loans
Mortgage loans:
Commercial	$	—	—	—	—	—	707	707
Residential	—		—	—	—	—	21	21
Total mortgage loans	—		—	—	—	—	728	728
Commercial loans	—		—	—	—	—	1,425	1,425
Consumer loans (1)	9		—	—	—	—	13	22
Total gross loans	$	9	—	—	—	—	2,166	2,175

(1) During the six months ended June 30, 2023, charge-offs on consumer overdraft accounts totaled $146,000, which is not included in the table above.

The Company defines a loan individually evaluated for impairment as a non-homogeneous loan greater than $1.0 million, for which, based on current information, it is not expected to collect all amounts due under the contractual terms of the loan agreement. At June 30, 2023, there were 17 loans totaling $37.1 million, compared to 10 loans totaling $42.8 million at December 31, 2022, that were individually evaluated for impairment.

A financial asset is considered collateral-dependent when the debtor is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. For all classes of loans deemed collateral-dependent, the Company estimates expected credit losses based on the collateral’s fair value less any selling costs. A specific allocation of the allowance for credit losses is established for each collateral-dependent loan with a carrying balance greater than the collateral’s fair value, less estimated selling costs. In most cases, the Company records a partial charge-off to reduce the loan’s carrying value to the collateral’s fair value less estimated selling costs. The Company uses third-party appraisals to determine the fair value of the underlying collateral in its analysis of collateral-dependent loans. A third-party appraisal is generally ordered as soon as a loan is designated as a collateral-dependent loan and updated annually, or more frequently if required. At each fiscal quarter end, if a loan is designated as collateral-dependent and the third-party appraisal has not yet been received, an evaluation of all available collateral is made using the best information available at the time, including rent rolls, borrower financial statements and tax returns, prior appraisals, management’s knowledge of the market and collateral, and internally prepared collateral valuations based upon market assumptions regarding vacancy and capitalization rates, each as and where applicable. Once the appraisal is received and reviewed, the specific reserves are adjusted to reflect the appraised value and evaluated for charge offs. The Company believes there have been no significant time lapses resulting from this process.

At June 30, 2023 and December 31, 2022, the Company had $14.6 million and $24.0 million related to the fair value of collateral-dependent loans individually evaluated for impairment, respectively. These loans at June 30, 2023 consisted of $14.6 million in commercial loans.

Loan modifications to borrowers experiencing financial difficulty may include interest rate reductions, principal or interest forgiveness, forbearance, term extensions, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral. In addition, management attempts to obtain additional collateral or guarantor support when modifying such loans. If the borrower has demonstrated performance under the previous terms and our underwriting process shows the borrower has the capacity to continue to perform under the restructured terms, the loan will continue to accrue

interest. Non-accruing restructured loans may be returned to accrual status when there has been a sustained period of repayment performance (generally six consecutive months of payments) and both principal and interest are deemed collectible.

The following illustrates the most common loan modifications by loan classes offered by the Company that are required to be disclosed pursuant to the requirements of ASU 2022-02:

Loan Classes	Modification types
Commercial	Term extension, interest rate reductions, payment delay, or combination thereof. These modifications extend the term of the loan, lower the payment amount, or otherwise delay payments during a defined period for the purpose of providing borrowers additional time to return to compliance with the original loan term.
Residential Mortgage/ Home Equity	Forbearance period greater than six months. These modifications require reduced or no payments during the forbearance period for the purpose of providing borrowers additional time to return to compliance with the original loan term. As well as, term extension and rate adjustment. These modifications extend the term of the loan and provides for an adjustment to the interest rate, which reduces the monthly payment requirement.
Automobile/ Direct Installment	Term extension greater than three months. These modifications extend the term of the loan, which reduces the monthly payment requirement.

Effective January 1, 2023, the Company adopted ASU 2022-02, “Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures” (“ASU 2022-02”), which eliminated the accounting guidance for troubled debt restructurings (“TDRs”) while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty. This guidance was applied on a modified retrospective basis. Upon adoption of this guidance, the Company no longer establishes a specific reserve for loan modifications to borrowers experiencing financial difficulty. Instead, these loan modifications are included in their respective pool and a historical loss rate is applied to the current loan balance to arrive at the quantitative and qualitative baseline portion of the allowance for credit losses. As a result, The Company recorded a $594,000 reduction to the allowance for credit losses, which resulted in a $433,000 cumulative effect adjustment increase, net of tax to retained earnings.

There were no loan modifications made to borrowers experiencing financial difficulty during the three months ended June 30, 2023.

The following table presents the amortized cost basis of loan modifications made to borrowers experiencing financial difficulty during the six months ended June 30, 2023 (in thousands):

	Term Extension		Interest Rate Reduction	Interest Rate Reduction and Term Extension	% of Total Class of Loans and Leases
Commercial loans	$	3,771	—	1,250	0.21	%
Total gross loans	$	3,771	—	1,250	0.05	%

The following table presents the financial effect of loan modifications made to borrowers experiencing financial difficulty during the six months ended June 30, 2023 (in thousands):

	Weighted-Average Months of Term Extension	Weight-Average Rate Change
Commercial loans	10	0.28	%
Total gross loans	10	0.28	%

There were no loan modifications made to borrowers experiencing financial difficulty during the three or six months ended June 30, 2023, that subsequently defaulted.

The following table presents the aging analysis of loan modifications made to borrowers experiencing financial difficulty during the six months ended June 30, 2023 (in thousands):

	Current		30-59 Days Past Due	60-89 Days Past Due	90 days or more Past Due	Non- Accrual	Total
Commercial loans	$	5,021	—	—	—	—	5,021
Total gross loans	$	5,021	—	—	—	—	5,021

Prior to our adoption of ASU 2022-02, we accounted for a modification to the contractual terms of a loan that resulted in granting a concession to a borrower experiencing financial difficulties as a TDR. However, our TDR accounting described herein was suspended for most of our loss mitigation activities through our election to account for certain eligible loss mitigation activities occurring between March 2020 and January 1, 2022 under the COVID-19 relief granted pursuant to the CARES Act and the Consolidated Appropriations Act of 2021. Effective January 1, 2023, we adopted ASU 2022-02, which eliminated TDR accounting prospectively for all restructurings occurring on or after January 1, 2023.

The following table presents the number of loans modified as TDRs during the three and six months ended June 30, 2022, along with their balances immediately prior to the modification date and post-modification as of June 30, 2022 (in thousands):

	For the three and six months ended
	June 30, 2022
Troubled Debt Restructurings	Number of Loans	Pre-Modification Outstanding Recorded  Investment		Post-Modification Outstanding Recorded Investment
Mortgage loans:
Residential	2	$	265	206
Multi Family	1	1,618		1,601
Total mortgage loans	3	1,883		1,807
Commercial loans	2	378		274
Total restructured loans	5	$	2,261	2,081

During the three and six months ended June 30, 2022, $921,000 of charge-offs were recorded on collateral-dependent impaired loans. There was one loan totaling $209,000 which had a payment default (90 days or more past due) for a loan modified as a TDR within the 12 month period ending June 30, 2023. For TDRs that subsequently defaulted, the Company determined the amount of the allowance for the respective loans in accordance with the accounting policy for the allowance for credit losses on loans individually evaluated for impairment.

As allowed by CECL, loans acquired by the Company that experience more-than-insignificant deterioration in credit quality after origination, are classified as Purchased Credit Deteriorated ("PCD") loans. At June 30, 2023, the balance of PCD loans totaled $173.3 million with a related allowance for credit losses of $1.6 million. The balance of PCD loans at December 31, 2022 was $193.0 million with a related allowance for credit losses of $1.7 million.

Management utilizes an internal nine-point risk rating system to summarize its loan portfolio into categories with similar risk characteristics. Loans deemed to be “acceptable quality” are rated 1 through 4, with a rating of 1 established for loans with minimal risk. Loans that are deemed to be of “questionable quality” are rated 5 (watch) or 6 (special mention). Loans with adverse classifications (substandard, doubtful or loss) are rated 7, 8 or 9, respectively. Commercial mortgage, commercial, multi-family and construction loans are rated individually, and each lending officer is responsible for risk rating loans in their portfolio. These risk ratings are then reviewed by the department manager and/or the Chief Lending Officer and by the Credit Department. The risk ratings are also reviewed periodically through loan review examinations which are currently performed by an independent third-party. Reports by the independent third-party are presented to the Audit Committee of the Board of Directors.

The Company participated in the Paycheck Protection Program (“PPP”) through the United States Department of the Treasury and Small Business Administration. PPP loans were fully guaranteed by the SBA and were eligible for forgiveness by the SBA to the extent that the proceeds were used to cover eligible payroll costs, interest costs, rent, and utility costs over a period of up

to 24 weeks after the loan was made as long as certain conditions were met regarding employee retention and compensation levels. PPP loans deemed eligible for forgiveness by the SBA are to be repaid by the SBA to the Company. Eligibility ended for this program in May of 2021. PPP loans are included in our commercial loan portfolio. Under the PPP, the Company secured 2,067 PPP loans for its customers totaling $682.0 million. As of June 30, 2023, 2,054 PPP loans totaling $679.4 million were forgiven and repaid by the SBA. The balance of PPP loans at June 30, 2023 was $2.6 million.

The following table summarizes the Company's gross loans held for investment by year of origination and internally assigned credit grades as of June 30, 2023 and December 31, 2022 (in thousands):

	Gross Loans Held for Investment by Year of Origination at June 30, 2023
	2023		2022	2021	2020	2019	Prior to 2019	Revolving Loans	Revolving loans to term loans	Total Loans
Commercial Mortgage
Special mention	$	—	—	—	2,713	2,346	33,436	485	—	38,980
Substandard	—		—	—	376	—	7,785	434	—	8,595
Doubtful	—		—	—	—	—	—	—	—	—
Loss	—		—	—	—	—	—	—	—	—
Total criticized and classified	—		—	—	3,089	2,346	41,221	919	—	47,575
Pass/Watch	290,713		910,869	670,781	511,239	513,150	1,318,607	96,163	14,339	4,325,861
Total commercial mortgage	$	290,713	910,869	670,781	514,328	515,496	1,359,828	97,082	14,339	4,373,436
Multi-family
Special mention	$	—	—	—	—	—	9,608	—	—	9,608
Substandard	—		—	—	—	—	3,211	—	—	3,211
Doubtful	—		—	—	—	—	—	—	—	—
Loss	—		—	—	—	—	—	—	—	—
Total criticized and classified	—		—	—	—	—	12,819	—	—	12,819
Pass/Watch	132,991		170,856	198,427	279,117	232,748	614,456	3,223	1,133	1,632,951
Total multi-family	$	132,991	170,856	198,427	279,117	232,748	627,275	3,223	1,133	1,645,770
Construction
Special mention	$	—	—	—	—	—	—	—	—	—
Substandard	—		—	—	—	1,097	777	—	—	1,874
Doubtful	—		—	—	—	—	—	—	—	—
Loss	—		—	—	—	—	—	—	—	—
Total criticized and classified	—		—	—	—	1,097	777	—	—	1,874
Pass/Watch	33,795		276,155	266,520	105,078	8,456	13,346		2,010	705,360
Total construction	$	33,795	276,155	266,520	105,078	9,553	14,123	—	2,010	707,234
Residential (1)
Special mention	$	—	—	—	—	—	1,172	—	—	1,172
Substandard	—		—	—	—	—	2,142	—	—	2,142
Doubtful	—		—	—	—	—	—	—	—	—
Loss	—		—	—	—	—	—	—	—	—
Total criticized and classified	—		—	—	—	—	3,314	—	—	3,314
Pass/Watch	42,524		147,449	205,949	205,123	92,537	469,263	—	—	1,162,845
Total residential	$	42,524	147,449	205,949	205,123	92,537	472,577	—	—	1,166,159

	Gross Loans Held for Investment by Year of Origination at June 30, 2023
	2023		2022	2021	2020	2019	Prior to 2019	Revolving Loans	Revolving loans to term loans	Total Loans
Total Mortgage
Special mention	$	—	—	—	2,713	2,346	44,216	485	—	49,760
Substandard	—		—	—	376	1,097	13,915	434	—	15,822
Doubtful	—		—	—	—	—	—	—	—	—
Loss	—		—	—	—	—	—	—	—	—
Total criticized and classified	—		—	—	3,089	3,443	58,131	919	—	65,582
Pass/Watch	500,023		1,505,329	1,341,677	1,100,557	846,891	2,415,672	99,386	17,482	7,827,017
Total Mortgage	$	500,023	1,505,329	1,341,677	1,103,646	850,334	2,473,803	100,305	17,482	7,892,599
Commercial
Special mention	$	—	70	387	577	54	11,490	9,714	—	22,292
Substandard	—		—	14,966	17,133	3,974	14,473	13,837	352	64,735
Doubtful	—		—	—	—	—	—	—	—	—
Loss	—		—	—	—	—	—	—	—	—
Total criticized and classified	—		70	15,353	17,710	4,028	25,963	23,551	352	87,027
Pass/Watch	154,852		379,855	308,290	148,648	151,902	552,747	538,651	26,475	2,261,420
Total commercial	$	154,852	379,925	323,643	166,358	155,930	578,710	562,202	26,827	2,348,447
Consumer (1)
Special mention	$	—	—	—	—	—	145	—	2	147
Substandard	—		—	—	—	—	4	709	90	803
Doubtful	—		—	—	—	—	—	—	—	—
Loss	—		—	—	—	—	—	—	—	—
Total criticized and classified	—		—	—	—	—	149	709	92	950
Pass/Watch	14,243		29,064	19,513	3,328	15,341	93,900	112,425	12,542	300,356
Total consumer	$	14,243	29,064	19,513	3,328	15,341	94,049	113,134	12,634	301,306
Total Loans
Special mention	$	—	70	387	3,290	2,400	55,851	10,199	2	72,199
Substandard	—		—	14,966	17,509	5,071	28,392	14,980	442	81,360
Doubtful	—		—	—	—	—	—	—	—	—
Loss	—		—	—	—	—	—	—	—	—
Total criticized and classified	—		70	15,353	20,799	7,471	84,243	25,179	444	153,559
Pass/Watch	669,118		1,914,248	1,669,480	1,252,533	1,014,134	3,062,319	750,462	56,499	10,388,793
Total gross loans	$	669,118	1,914,318	1,684,833	1,273,332	1,021,605	3,146,562	775,641	56,943	10,542,352

(1) For residential and consumer loans, the Company assigns internal credit grades based on the delinquency status of each loan.

	Gross Loans Held for Investment by Year of Origination at December 31, 2022
	2022		2021	2020	2019	2018	Prior to 2018	Revolving Loans	Revolving loans to term loans	Total Loans
Commercial Mortgage
Special mention	$	—	—	3,071	26,809	52,509	14,740	—	—	97,129

	Gross Loans Held for Investment by Year of Origination at December 31, 2022
	2022		2021	2020	2019	2018	Prior to 2018	Revolving Loans	Revolving loans to term loans	Total Loans
Substandard	—		—	—	—	18,020	11,774	434	—	30,228
Doubtful	—		—	—	—	—	—	—	—	—
Loss	—		—	—	—	—	—	—	—	—
Total criticized and classified	—		—	3,071	26,809	70,529	26,514	434	—	127,357
Pass/Watch	951,367		630,584	567,448	546,474	218,620	1,164,854	94,716	14,765	4,188,828
Total commercial mortgage	$	951,367	630,584	570,519	573,283	289,149	1,191,368	95,150	14,765	4,316,185
Multi-family
Special mention	$	—	—	—	—	—	9,730	—	—	9,730
Substandard	—		—	—	—	—	2,356	—	—	2,356
Doubtful	—		—	—	—	—	—	—	—	—
Loss	—		—	—	—	—	—	—	—	—
Total criticized and classified	—		—	—	—	—	12,086	—	—	12,086
Pass/Watch	142,550		150,293	282,228	234,953	187,499	502,177	887	1,145	1,501,732
Total multi-family	$	142,550	150,293	282,228	234,953	187,499	514,263	887	1,145	1,513,818
Construction
Special mention	$	—	—	—	—	19,728	905	—	—	20,633
Substandard	—		—	—	2,197	777	—	—	—	2,974
Doubtful	—		—	—	—	—	—	—	—	—
Loss	—		—	—	—	—	—	—	—	—
Total criticized and classified	—		—	—	2,197	20,505	905	—	—	23,607
Pass/Watch	168,674		362,542	103,067	38,639	16,917	62		1,986	691,887
Total construction	$	168,674	362,542	103,067	40,836	37,422	967	—	1,986	715,494
Residential (1)
Special mention	$	—	—	—	—	—	1,114	—	—	1,114
Substandard	—		—	—	—	264	4,417	—	—	4,681
Doubtful	—		—	—	—	—	—	—	—	—
Loss	—		—	—	—	—	—	—	—	—
Total criticized and classified	—		—	—	—	264	5,531	—	—	5,795
Pass/Watch	151,077		212,697	211,445	95,872	58,226	442,586	—	—	1,171,903
Total residential	$	151,077	212,697	211,445	95,872	58,490	448,117	—	—	1,177,698
Total Mortgage
Special mention	$	—	—	3,071	26,809	72,237	26,489	—	—	128,606
Substandard	—		—	—	2,197	19,061	18,547	434	—	40,239
Doubtful	—		—	—	—	—	—	—	—	—
Loss	—		—	—	—	—	—	—	—	—
Total criticized and classified	—		—	3,071	29,006	91,298	45,036	434	—	168,845

	Gross Loans Held for Investment by Year of Origination at December 31, 2022
	2022		2021	2020	2019	2018	Prior to 2018	Revolving Loans	Revolving loans to term loans	Total Loans
Pass/Watch	1,413,668		1,356,116	1,164,188	915,938	481,262	2,109,679	95,603	17,896	7,554,350
Total Mortgage	$	1,413,668	1,356,116	1,167,259	944,944	572,560	2,154,715	96,037	17,896	7,723,195
Commercial
Special mention	$	75	1,148	444	201	10,156	4,379	14,530	140	31,073
Substandard	—		7,605	10,230	4,391	3,561	13,734	7,604	364	47,489
Doubtful	—		—	—	—	—	—	—	—	—
Loss	—		—	—	—	—	—	—	—	—
Total criticized and classified	75		8,753	10,674	4,592	13,717	18,113	22,134	504	78,562
Pass/Watch	377,662		320,334	162,175	161,150	87,396	522,798	492,717	30,876	2,155,108
Total commercial	$	377,737	329,087	172,849	165,742	101,113	540,911	514,851	31,380	2,233,670
Consumer (1)
Special mention	$	—	—	—	—	—	146	—	—	146
Substandard	—			8	—	109	332	209	—	658
Doubtful	—		—	—	—	—	—	—	—	—
Loss	—		—	—	—	—	—	—	—	—
Total criticized and classified	—		—	8	—	109	478	209	—	804
Pass/Watch	30,132		20,671	2,909	16,682	16,156	88,173	115,777	13,476	303,976
Total consumer	$	30,132	20,671	2,917	16,682	16,265	88,651	115,986	13,476	304,780
Total Loans
Special mention	$	75	1,148	3,515	27,010	82,393	31,014	14,530	140	159,825
Substandard	—		7,605	10,238	6,588	22,731	32,613	8,247	364	88,386
Doubtful	—		—	—	—	—	—	—	—	—
Loss	—		—	—	—	—	—	—	—	—
Total criticized and classified	75		8,753	13,753	33,598	105,124	63,627	22,777	504	248,211
Pass/Watch	1,821,462		1,697,121	1,329,272	1,093,770	584,814	2,720,650	704,097	62,248	10,013,434
Total gross loans	$	1,821,537	1,705,874	1,343,025	1,127,368	689,938	2,784,277	726,874	62,752	10,261,645

(1) For residential and consumer loans, the Company assigns internal credit grades based on the delinquency status of each loan.