LOANS (Tables)

9 Months Ended

Sep. 30, 2023

LOANS

Summary of Loans

	September 30,		December 31,
(dollars in thousands)	2023		2022
Outstanding principal balance:
Loans secured by real estate:
Residential properties:
Multifamily	$	5,240,385	$	5,341,596
Single family		960,139		1,016,498
Total real estate loans secured by residential properties		6,200,524		6,358,094
Commercial properties		1,043,930		1,203,292
Land and construction		141,216		158,565
Total real estate loans		7,385,670		7,719,951
Commercial and industrial loans		2,877,441		2,984,748
Consumer loans		3,545		4,481
Total loans		10,266,656		10,709,180
Premiums, discounts and deferred fees and expenses		16,697		17,013
Total	$	10,283,353	$	10,726,193

Summary of Delinquent and Nonaccrual Loans

The following table summarizes our delinquent and nonaccrual loans as of:

	Past Due and Still Accruing												Total Past
							90 Days						Due and
(dollars in thousands)	30–59 Days			60-89 Days			or More			Nonaccrual			Nonaccrual			Current		Total
September 30, 2023:
Real estate loans:
Residential properties	$	511		$	15,660		$	—		$	1,066		$	17,237		$	6,202,405	$	6,219,642
Commercial properties		8,704			—			2,171			3,015			13,890			1,029,215		1,043,105
Land and construction		—			—			—			—			—			140,665		140,665
Commercial and industrial loans		3,277			666			—			3,017			6,960			2,869,360		2,876,320
Consumer loans		160			—			—			—			160			3,461		3,621
Total	$	12,652		$	16,326		$	2,171		$	7,098		$	38,247		$	10,245,106	$	10,283,353
Percentage of total loans		0.12	%		0.16	%		0.02	%		0.07	%		0.37	%
December 31, 2022:
Real estate loans:
Residential properties	$	511		$	57		$	—		$	2,556		$	3,124		$	6,374,100	$	6,377,224
Commercial properties		15,000			946			1,213			4,547			21,706			1,180,357		1,202,063
Land and construction		—			—			—			—			—			157,630		157,630
Commercial and industrial loans		385			1,495			982			3,228			6,090			2,978,668		2,984,758
Consumer loans		—			167			—			—			167			4,351		4,518
Total	$	15,896		$	2,665		$	2,195		$	10,331		$	31,087		$	10,695,106	$	10,726,193
Percentage of total loans		0.15	%		0.02	%		0.02	%		0.10	%		0.29	%

Summary of nonaccrual loans

	Nonaccrual		Nonaccrual
	with Allowance		with no Allowance
(dollars in thousands)	for Credit Losses		for Credit Losses
September 30, 2023:
Real estate loans:
Residential properties	$	710	$	356
Commercial properties		—		3,015
Commercial and industrial loans		2,552		466
Consumer loans		—		—
Total	$	3,262	$	3,837
December 31, 2022:
Real estate loans:
Residential properties	$	—	$	2,556
Commercial properties		—		4,547
Commercial and industrial loans		2,016		1,212
Total	$	2,016	$	8,315

Composition of TDRs by Accrual and Nonaccrual Status

	September 30, 2023:
	Term Extension
		Amortized Cost Basis	% of Total Class of Loans		Financial Effect
Commercial and industrial loans	$	5,770	0.20	%	1 loan with 3-month term extension
Total	$	5,770
	Payment Deferrals
		Amortized Cost Basis	% of Total Class of Loans		Financial Effect
Commercial and industrial loans	$	400	—	%	4 loans each with partial payment deferrals for 3 months
Total	$	400
	Combination
		Amortized Cost Basis	% of Total Class of Loans		Financial Effect
Commercial real estate loans	$	645	0.10	%	1 loan with 10 year term extension and interest reduction
Total	$	645
	Total
		Amortized Cost Basis	% of Total Class of Loans
Commercial real estate loans	$	645	0.10	%
Commercial and industrial loans	$	6,170	0.20	%
Total	$	6,815

The following table presents the amortized cost basis of loans that had a payment default since modification during the nine months ended September 30, 2023:

	September 30, 2023:
	Payment Deferrals
		# of Loans Defaulted		Amortized Cost Basis
Commercial and industrial loans		1	$	1,339
Total		1	$	1,339
	Combination
		# of Loans Defaulted		Amortized Cost Basis
Commercial and industrial loans		1	$	950
Total		1	$	950
	Total
		# of Loans Defaulted		Amortized Cost Basis
Commercial and industrial loans		2		2,289
Total	$	2	$	2,289

The following table presents the payment status of our loan modifications made during the nine months ended September 30, 2023:

			30-89 Days		90+ Days
(dollars in thousands)		Current	Past Due		Past Due		Total
September 30, 2023:
Commercial real estate loans	$	645	$	—	$	—	$	645
Commercial and industrial loans		6,170		—		2,289		8,459
Total	$	6,815	$	—	$	2,289	$	9,104

FASB has provided transition guidance to assist with the implementation of ASU 2022-02.  Per this guidance, FASB expects that for comparative periods presented before adoption, current TDR disclosures should continue to be provided.  As such, the following table presents the loans classified as TDRs by accrual and nonaccrual status as of the comparative period ended December 31, 2022:

	December 31, 2022
(dollars in thousands)	Accrual		Nonaccrual		Total
Commercial real estate loans	$	929	$	1,066	$	1,995
Commercial and industrial loans		166		1,412		1,578
Total	$	1,095	$	2,478	$	3,573