LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)

6 Months Ended

Jun. 30, 2023

Loans and Leases Receivable Disclosure [Line Items]

Schedule of net loans

Loans, net of deferred costs and fees, consist of the following (in thousands):

	At June 30,		December 31,
	2023		2022
Real estate
Commercial	$	3,546,818	$	3,254,508
Construction		131,370		143,693
Multi-family		460,285		468,540
One-to four-family		51,824		53,207
Total real estate loans		4,190,297		3,919,948
Commercial and industrial		954,700		908,616
Consumer		20,092		24,931
Total loans		5,165,089		4,853,495
Deferred fees, net of origination costs		(15,543)		(12,972)
Loans, net of deferred fees and costs		5,149,546		4,840,523
Allowance for credit losses		(51,650)		(44,876)
Net loans	$	5,097,896	$	4,795,647

Schedule of changes in the allowance for loan losses by portfolio segment

The following tables present the activity in the ACL for funded loans by segment. The portfolio segments represent the categories that the Company uses to determine its ACL (in thousands):

	Commercial		Commercial				Multi		One-to four-
Three months ended June 30, 2023	Real Estate		& Industrial		Construction		Family		Family		Consumer		Total
Allowance for credit losses:
Beginning balance	$	31,836	$	10,757	$	1,261	$	2,871	$	407	$	620	$	47,752
Provision/(credit) for credit losses		2,785		220		339		672		(45)		(29)		3,942
Loans charged-off		—		—		—		—		—		(44)		(44)
Recoveries		—		—		—		—		—		—		—
Total ending allowance balance	$	34,621	$	10,977	$	1,600	$	3,543	$	362	$	547	$	51,650

	Commercial		Commercial				Multi		One-to four-
Three months ended June 30, 2022	Real Estate		& Industrial		Construction		Family		Family		Consumer		Total
Allowance for credit losses:
Beginning balance	$	24,720	$	8,488	$	2,329	$	2,256	$	104	$	237	$	38,134
Provision/(credit) for credit losses		1,225		656		258		283		(2)		(20)		2,400
Loans charged-off		—		—		—		—		—		—		—
Recoveries		—		—		—		—		—		—		—
Total ending allowance balance	$	25,945	$	9,144	$	2,587	$	2,539	$	102	$	217	$	40,534

	Commercial		Commercial						One-to four-
Six months ended June 30, 2023	Real Estate		& Industrial		Construction		Multi-family		Family		Consumer		Total
Allowance for credit losses:
Beginning balance	$	29,496	$	10,274	$	1,983	$	2,823	$	105	$	195	$	44,876
Cumulative effect of changes in accounting principle		48		471		424		705		181		421		2,250
Provision/(credit) for credit losses		5,077		232		(807)		15		76		74		4,667
Loans charged-off		—		—		—		—		—		(143)		(143)
Recoveries		—		—		—		—		—		—		—
Total ending allowance balance	$	34,621	$	10,977	$	1,600	$	3,543	$	362	$	547	$	51,650

	Commercial		Commercial						One-to four-
Six months ended June 30, 2022	Real Estate		& Industrial		Construction		Multi-family		Family		Consumer		Total
Allowance for credit losses:
Beginning balance	$	22,216	$	7,708	$	2,105	$	2,156	$	140	$	404	$	34,729
Provision/(credit) for credit losses		3,729		1,436		482		383		(38)		(192)		5,800
Loans charged-off		—		—		—		—		—		—		—
Recoveries		—		—		—		—		—		5		5
Total ending allowance balance	$	25,945	$	9,144	$	2,587	$	2,539	$	102	$	217	$	40,534

Schedule of allowance for loan losses and the recorded investment in loans by portfolio segment

The following tables present the balance in the ACL and the recorded investment in loans by portfolio segment based on allowance measurement methodology (in thousands):

	Commercial		Commercial						One-to four-
At June 30, 2023	Real Estate		& Industrial		Construction		Multi-family		Family		Consumer		Total
Allowance for credit losses:
Individually assessed	$	—	$	—	$	—	$	—	$	—	$	24	$	24
Collectively assessed		34,621		10,977		1,600		3,543		362		523		51,626
Total ending allowance balance	$	34,621	$	10,977	$	1,600	$	3,543	$	362	$	547	$	51,650
Loans:
Individually assessed	$	40,729	$	3,499	$	—	$	—	$	—	$	24	$	44,252
Collectively assessed		3,506,089		951,201		131,370		460,285		51,824		20,068		5,120,837
Total ending loan balance	$	3,546,818	$	954,700	$	131,370	$	460,285	$	51,824	$	20,092	$	5,165,089

	Commercial		Commercial						One-to four-
At December 31, 2022	Real Estate		& Industrial		Construction		Multi-family		Family		Consumer		Total
Allowance for credit losses:
Individually assessed	$	—	$	—	$	—	$	—	$	—	$	24	$	24
Collectively assessed		29,496		10,274		1,983		2,823		105		171		44,852
Total ending allowance balance	$	29,496	$	10,274	$	1,983	$	2,823	$	105	$	195	$	44,876
Loans:
Individually assessed	$	26,740	$	—	$	—	$	—	$	899	$	24	$	27,663
Collectively assessed		3,227,768		908,616		143,693		468,540		52,308		24,907		4,825,832
Total ending loan balance	$	3,254,508	$	908,616	$	143,693	$	468,540	$	53,207	$	24,931	$	4,853,495

Schedule of recorded investment in non-accrual loans, loans past due over 90 days and still accruing by class of loans

The following tables present the recorded investment in non-accrual loans and loans past due over 90 days and still accruing, by class of loans (in thousands):

			Nonaccrual		Loans Past Due
			Without an		Over 90 Days
At June 30, 2023	Nonaccrual		ACL		Still Accruing
Commercial real estate	$	24,000	$	24,000	$	—
Consumer		24		—		—
Total	$	24,024	$	24,000	$	—

			Nonaccrual		Loans Past Due
			Without an		Over 90 Days
At December 31, 2022		Nonaccrual	ACL		Still Accruing
Consumer		24		—		—
Total	$	24	$	—	$	—

Schedule of aging of the recorded investment in past due loans by class of loans

The following tables present the aging of the recorded investment in past due loans by class of loans (in thousands):

					90
	30-59		60-89		Days and		Total past		Current
At June 30, 2023	Days		Days		greater		due		loans		Total
Commercial real estate	$	—	$	—	$	24,000	$	24,000	$	3,522,818	$	3,546,818
Commercial & industrial		7,660		32		—		7,692		947,008		954,700
Construction		—		—		—		—		131,370		131,370
Multi-family		—		—		—		—		460,285		460,285
One-to four-family		—		—		—		—		51,824		51,824
Consumer		12		23		24		59		20,033		20,092
Total	$	7,672	$	55	$	24,024	$	31,751	$	5,133,338	$	5,165,089

					90
	30-59		60-89		Days and		Total past		Current
At December 31, 2022	Days		Days		greater		due		loans		Total
Commercial real estate	$	—	$	24,000	$	—	$	24,000	$	3,230,508	$	3,254,508
Commercial & industrial		37		—		—		37		908,579		908,616
Construction		—		—		—		—		143,693		143,693
Multi-family		8,000		—		—		8,000		460,540		468,540
One-to four-family		—		—		—		—		53,207		53,207
Consumer		21		—		24		45		24,886		24,931
Total	$	8,058	$	24,000	$	24	$	32,082	$	4,821,413	$	4,853,495

Schedule of risk category of loans by class of loans

The following table presents loan balances by credit quality indicator and year of origination at June 30, 2023 (in thousands):

	2023		2022		2021		2020		2019		2018 & Prior		Revolving		Total
CRE
Pass	$	888,074	$	1,405,948	$	587,204	$	163,773	$	225,153	$	130,995	$	41,272	$	3,442,419
Special Mention		48,641		—		14,714		315		—		—		—		63,670
Substandard		—		24,000		—		16,729		—		—		—		40,729
Total	$	936,715	$	1,429,948	$	601,918	$	180,817	$	225,153	$	130,995	$	41,272	$	3,546,818
Construction
Pass	$	19,781	$	65,409	$	37,160	$	—	$	—	$	—	$	9,021	$	131,371
Total	$	19,781	$	65,409	$	37,160	$	—	$	—	$	—	$	9,021	$	131,371
Multi-family
Pass	$	45,134	$	183,628	$	73,292	$	23,883	$	38,006	$	89,819	$	6,523	$	460,285
Total	$	45,134	$	183,628	$	73,292	$	23,883	$	38,006	$	89,819	$	6,523	$	460,285
One-to four-family
Current	$	—	$	4,163	$	—	$	12,117	$	12,384	$	23,160	$	—	$	51,824
Total	$	—	$	4,163	$	—	$	12,117	$	12,384	$	23,160	$	—	$	51,824
Commercial and industrial
Pass	$	131,656	$	282,851	$	116,901	$	28,499	$	16,869	$	10,653	$	305,004	$	892,433
Special Mention		—		34,418		—		2,447		—		—		21,903		58,768
Substandard		—		—		—		—		—		—		3,499		3,499
Total	$	131,656	$	317,269	$	116,901	$	30,946	$	16,869	$	10,653	$	330,406	$	954,700
Consumer
Current	$	—	$	—	$	—	$	—	$	—	$	20,033	$	—	$	20,033
Past due		—		—		—		—		—		59		—		59
Total	$	—	$	—	$	—	$	—	$	—	$	20,092	$	—	$	20,092

For loans evaluated by credit risk ratings, the following table presents loan balances by credit quality indicator and by class of loans at December 31, 2022 (in thousands):

			Special
	Pass		Mention		Substandard		Doubtful			Total
Commercial real estate	$	3,192,212	$	35,881	$	26,415	$	—	$	3,254,508
Commercial & industrial		876,867		31,749		—		—		908,616
Construction		143,693		—		—		—		143,693
Multi-family		468,540		—		—		—		468,540
Total	$	4,681,312	$	67,630	$	26,415	$	—	$	4,775,357

Schedule of loans determined to be impaired by class of loans

The following tables present loans individually evaluated for impairment pursuant to the disclosure requirements prior to the adoption of ASU No. 2016-13 on January 1, 2023 (in thousands). The recorded investment in loans excludes accrued interest receivable and loan origination fees.

		At December 31, 2022
					Allowance
	Unpaid				for Loan
	Principal		Recorded		Losses
	Balance		Investment		Allocated
With an allowance recorded:
Consumer		24		24		24
Total	$	24	$	24	$	24
Without an allowance recorded:
One-to four-family	$	1,176	$	899	$	—
CRE		27,984		26,740		—
Total	$	29,160	$	27,639	$	—

	Average		Interest
	Recorded		Income
Three months ended June 30, 2022	Investment		Recognized
With an allowance recorded:
Consumer		24		—
Total	$	24	$	—
Without an allowance recorded:
One-to four-family	$	927	$	9
CRE		28,514		266
Total	$	29,441	$	275

	Average		Interest
	Recorded		Income
Six months ended June 30, 2022	Investment		Recognized
With an allowance recorded:
Consumer		117		—
Total	$	117	$	—
Without an allowance recorded:
One-to four-family	$	784	$	18
CRE		31,849		496
Total	$	32,633	$	514

Unfunded loan commitment

Loans and Leases Receivable Disclosure [Line Items]

Schedule of allowance for loan losses and the recorded investment in loans by portfolio segment

The following tables present the activity in the ACL for unfunded loan commitments (in thousands):

	Three months ended June 30,				Six months ended June 30,
	2023		2022		2023		2022
Balance at the beginning of period	$	877	$	180	$	180	$	180
Cumulative effect of changes in accounting principle		—		—		777		—
Provision/(credit) for credit losses		363		—		283		—
Total ending allowance balance	$	1,240	$	180	$	1,240	$	180