Loans and Leases Receivable and Allowance for Credit Losses on Loans and Leases (Tables)

9 Months Ended

Sep. 30, 2021

Receivables [Abstract]

Schedule of Loans and Leases Receivable

The following table presents loans and leases receivable as of September 30, 2021 and December 31, 2020.

(amounts in thousands)	September 30, 2021		December 31, 2020
Loans and leases receivable, mortgage warehouse, at fair value	$	2,557,624	$	3,616,432
Loans receivable, PPP	4,957,357		4,561,365
Loans receivable:
Commercial:
Multi-family	1,369,876		1,761,301
Commercial and industrial (1)	2,673,226		2,289,441
Commercial real estate owner occupied	656,044		572,338
Commercial real estate non-owner occupied	1,144,643		1,196,564
Construction	198,607		140,905
Total commercial loans and leases receivable	6,042,396		5,960,549
Consumer:
Residential real estate	248,153		317,170
Manufactured housing	55,635		62,243
Installment	1,624,415		1,235,406
Total consumer loans receivable	1,928,203		1,614,819
Loans and leases receivable (2)	7,970,599		7,575,368
Allowance for credit losses on loans and leases	(131,496)		(144,176)
Total loans and leases receivable, net of allowance for credit losses on loans and leases	$	15,354,084	$	15,608,989

(1)Includes direct finance equipment leases of $135.8 million and $108.0 million at September 30, 2021 and December 31, 2020, respectively.

(2)Includes deferred (fees) costs and unamortized (discounts) premiums, net of $(131.2) million and $(54.6) million at September 30, 2021 and December 31, 2020, respectively.

Loans and Leases Receivable by Loan Type and Performance Status

The following tables summarize loans and leases receivable by loan and lease type and performance status as of September 30, 2021 and December 31, 2020:

	September 30, 2021
(amounts in thousands)	30-59 Days past due (1)		60-89 Days past due (1)		90 Days or more past due (1)		Total past due (1)		Loans and leases not past due (2)		Total loans and leases (3)
Multi-family	$	—	$	8,896	$	24,132	$	33,028	$	1,336,848	$	1,369,876
Commercial and industrial	1,970		2,433		6,706		11,109		2,662,117		2,673,226
Commercial real estate owner occupied	—		326		1,351		1,677		654,367		656,044
Commercial real estate non-owner occupied	—		12,795		2,845		15,640		1,129,003		1,144,643
Construction	—		—		—		—		198,607		198,607
Residential real estate	1,042		795		2,821		4,658		243,495		248,153
Manufactured housing	2,967		225		5,455		8,647		46,988		55,635
Installment	5,625		3,555		3,544		12,724		1,611,691		1,624,415
Total	$	11,604	$	29,025	$	46,854	$	87,483	$	7,883,116	$	7,970,599

	December 31, 2020
(amounts in thousands)	30-59 Days past due (1)		60-89 Days past due (1)		90 Days or more past due (1)		Total past due (1)		Loans and leases not past due (2)		Total loans and leases (3)
Multi-family	$	4,193	$	5,224	$	14,907	$	24,324	$	1,736,977	$	1,761,301
Commercial and industrial	2,257		1,274		3,079		6,610		2,282,831		2,289,441
Commercial real estate owner occupied	864		1,324		2,370		4,558		567,780		572,338
Commercial real estate non-owner occupied	—		60		2,356		2,416		1,194,148		1,196,564
Construction	—		—		—		—		140,905		140,905
Residential real estate	6,640		1,827		1,856		10,323		306,847		317,170
Manufactured housing	1,518		673		1,951		4,142		58,101		62,243
Installment	6,161		3,430		81		9,672		1,225,734		1,235,406
Total	$	21,633	$	13,812	$	26,600	$	62,045	$	7,513,323	$	7,575,368

(1)Includes past due loans and leases that are accruing interest because collection is considered probable.

(2)Loans and leases where next payment due is less than 30 days from the report date. The September 30, 2021 and December 31, 2020 tables exclude PPP loans of $5.0 billion and $4.6 billion, respectively, which are all current as of September 30, 2021 and December 31, 2020.

(3)Includes PCD loans of $11.0 million and $13.4 million at September 30, 2021 and December 31, 2020, respectively.

Amortized cost of Loans and Leases on Nonaccrual Status

The following table presents the amortized cost of loans and leases held for investment on nonaccrual status.

	September 30, 2021 (1)						December 31, 2020 (1)
(amounts in thousands)	Nonaccrual loans with no related allowance		Nonaccrual loans with related allowance		Total nonaccrual loans		Nonaccrual loans with no related allowance		Nonaccrual loans with related allowance		Total nonaccrual loans
Multi-family	$	24,524	$	—	$	24,524	$	18,800	$	2,928	$	21,728
Commercial and industrial	6,558		393		6,951		6,384		2,069		8,453
Commercial real estate owner occupied	2,412		—		2,412		3,411		—		3,411
Commercial real estate non-owner occupied	2,845		—		2,845		2,356		—		2,356
Residential real estate	7,738		—		7,738		9,911		—		9,911
Manufactured housing	—		3,520		3,520		—		2,969		2,969
Installment	—		3,544		3,544		—		3,211		3,211
Total	$	44,077	$	7,457	$	51,534	$	40,862	$	11,177	$	52,039

(1) Presented at amortized cost basis.

Schedule of Allowance for Credit Losses on Loans and Leases

The changes in the ACL on loans and leases for the three and nine months ended September 30, 2021 and 2020 are presented in the tables below.

(amounts in thousands)	Multi-family		Commercial and industrial		Commercial real estate owner occupied		Commercial real estate non-owner occupied		Construction		Residential real estate		Manufactured housing		Installment		Total
Three Months Ended September 30, 2021
Ending Balance, June 30, 2021	$	5,028	$	8,127	$	4,464	$	7,374	$	2,643	$	2,299	$	4,372	$	91,129	$	125,436
Charge-offs	—		(516)		(524)		(943)		—		(79)		—		(6,693)		(8,755)
Recoveries	—		400		474		—		3		25		—		749		1,651
Provision (benefit) for credit losses	(631)		2,849		(797)		944		(1,760)		(333)		38		12,854		13,164
Ending Balance, September 30, 2021	$	4,397	$	10,860	$	3,617	$	7,375	$	886	$	1,912	$	4,410	$	98,039	$	131,496
Nine Months Ended September 30, 2021
Ending Balance, December 31, 2020	$	12,620	$	12,239	$	9,512	$	19,452	$	5,871	$	3,977	$	5,190	$	75,315	$	144,176
Charge-offs	(1,132)		(1,153)		(666)		(943)		—		(129)		—		(27,338)		(31,361)
Recoveries	—		945		483		69		122		47		—		3,479		5,145
Provision (benefit) for credit losses	(7,091)		(1,171)		(5,712)		(11,203)		(5,107)		(1,983)		(780)		46,583		13,536
Ending Balance, September 30, 2021	$	4,397	$	10,860	$	3,617	$	7,375	$	886	$	1,912	$	4,410	$	98,039	$	131,496

(amounts in thousands)	Multi-family		Commercial and industrial		Commercial real estate owner occupied		Commercial real estate non-owner occupied		Construction		Residential real estate		Manufactured housing		Installment		Total
Three Months Ended September 30, 2020
Ending Balance, June 30, 2020	$	14,697	$	12,302	$	11,405	$	26,493	$	5,297	$	4,550	$	6,014	$	79,147	$	159,905
Charge-offs	—		(2,527)		(44)		(10,181)		—		—		—		(9,194)		(21,946)
Recoveries	—		2,582		—		1,258		6		17		—		784		4,647
Provision (benefit) for credit losses	329		569		(1,809)		2,630		1,120		82		(389)		10,423		12,955
Ending Balance, September 30, 2020	$	15,026	$	12,926	$	9,552	$	20,200	$	6,423	$	4,649	$	5,625	$	81,160	$	155,561
Nine Months Ended September 30, 2020
Ending Balance, December 31, 2019	$	6,157	$	15,556	$	2,235	$	6,243	$	1,262	$	3,218	$	1,060	$	20,648	$	56,379
Cumulative effect of change in accounting principle - CECL	2,171		759		5,773		7,918		(98)		1,518		3,802		57,986		79,829
Charge-offs	—		(2,645)		(44)		(25,779)		—		—		—		(23,744)		(52,212)
Recoveries	—		2,661		5		1,258		122		72		—		1,759		5,877
Provision (benefit) for credit losses	6,698		(3,405)		1,583		30,560		5,137		(159)		763		24,511		65,688
Ending Balance, September 30, 2020	$	15,026	$	12,926	$	9,552	$	20,200	$	6,423	$	4,649	$	5,625	$	81,160	$	155,561

Analysis of Loans Modified in Troubled Debt Restructuring by Type of Concession

The following table presents loans modified in a TDR by type of concession for the three and nine months ended September 30, 2021 and 2020. There were no modifications that involved forgiveness of debt for the three and nine months ended September 30, 2021 and 2020.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
(dollars in thousands)	Number of loans	Recorded investment		Number of loans	Recorded investment		Number of loans	Recorded investment		Number of loans	Recorded investment
Extensions of maturity	—	$	—	—	$	—	—	$	—	6	$	385
Interest-rate reductions	4	244		2	88		16	585		34	1,461
Other (1)	39	687		65	1,385		158	2,369		65	1,385
Total	43	$	931	67	$	1,473	174	$	2,954	105	$	3,231

(1) Other includes covenant modifications, forbearance, loans discharged under Chapter 7 bankruptcy, or other concessions.

Summary of Loans Modified in Troubled Debt Restructurings and Related Recorded Investment Within Twelve Months

The following table presents, by loan type, the number of loans modified in TDRs and the related recorded investment, for which there was a payment default within twelve months following the modification:

	September 30, 2021			September 30, 2020
(dollars in thousands)	Number of loans	Recorded investment		Number of loans	Recorded investment
Manufactured housing	2	$	71	5	$	201
Commercial real estate owner occupied	—	—		1	952
Residential real estate	—	—		1	95
Installment	19	231		8	126
Total loans	21	$	302	15	$	1,374

Credit Ratings of Covered and Non-Covered Loan Portfolio

The following tables present the credit ratings of loans and leases receivable as of September 30, 2021 and December 31, 2020.

	Term Loans Amortized Cost Basis by Origination Year as of September 30, 2021
(amounts in thousands)	2021		2020		2019		2018		2017		Prior		Revolving loans amortized cost basis		Revolving loans converted to term		Total
Multi-family loans:
Pass	$	126,265	$	132,433	$	22,974	$	232,655	$	331,909	$	422,484	$	—	$	—	$	1,268,720
Special mention	—		—		—		4,902		2,773		18,029		—		—		25,704
Substandard	—		—		—		—		41,364		34,088		—		—		75,452
Doubtful	—		—		—		—		—		—		—		—		—
Total multi-family loans	$	126,265	$	132,433	$	22,974	$	237,557	$	376,046	$	474,601	$	—	$	—	$	1,369,876
Commercial and industrial loans and leases:
Pass	$	568,013	$	381,413	$	276,126	$	94,175	$	93,126	$	94,554	$	1,067,761	$	—	$	2,575,168
Special mention	19,387		3,186		5,750		5,084		—		210		13,171		—		46,788
Substandard	—		10,380		7,484		12,065		7,098		7,028		7,215		—		51,270
Doubtful	—		—		—		—		—		—		—		—		—
Total commercial and industrial loans and leases	$	587,400	$	394,979	$	289,360	$	111,324	$	100,224	$	101,792	$	1,088,147	$	—	$	2,673,226
Commercial real estate owner occupied loans:
Pass	$	153,865	$	83,893	$	142,061	$	62,723	$	59,116	$	114,479	$	672	$	—	$	616,809
Special mention	—		—		—		318		2,058		579		—		—		2,955
Substandard	—		—		6,885		9,491		8,932		10,972		—		—		36,280
Doubtful	—		—		—		—		—		—		—		—		—
Total commercial real estate owner occupied loans	$	153,865	$	83,893	$	148,946	$	72,532	$	70,106	$	126,030	$	672	$	—	$	656,044
Commercial real estate non-owner occupied:
Pass	$	109,585	$	157,702	$	103,630	$	66,994	$	166,532	$	324,225	$	—	$	—	$	928,668
Special mention	—		21,812		11,172		9,445		43,500		32,777		—		—		118,706
Substandard	—		—		—		35,957		20,611		40,701		—		—		97,269
Doubtful	—		—		—		—		—		—		—		—		—
Total commercial real estate non-owner occupied loans	$	109,585	$	179,514	$	114,802	$	112,396	$	230,643	$	397,703	$	—	$	—	$	1,144,643
Construction:
Pass	$	13,053	$	42,888	$	125,339	$	4,869	$	—	$	9,507	$	1,441	$	—	$	197,097
Special mention	—		1,510		—		—		—		—		—		—		1,510
Substandard	—		—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—		—
Total construction loans	$	13,053	$	44,398	$	125,339	$	4,869	$	—	$	9,507	$	1,441	$	—	$	198,607
Total commercial loans and leases receivable	$	990,168	$	835,217	$	701,421	$	538,678	$	777,019	$	1,109,633	$	1,090,260	$	—	$	6,042,396
Residential real estate loans:
Performing	$	4,481	$	8,272	$	13,738	$	11,413	$	6,735	$	89,259	$	106,649	$	—	$	240,547
Non-performing	—		—		139		1,020		669		4,016		1,762		—		7,606
Total residential real estate loans	$	4,481	$	8,272	$	13,877	$	12,433	$	7,404	$	93,275	$	108,411	$	—	$	248,153
Manufactured housing loans:
Performing	$	—	$	—	$	293	$	304	$	75	$	49,606	$	—	$	—	$	50,278
Non-performing	—		—		—		—		—		5,357		—		—		5,357
Total manufactured housing loans	$	—	$	—	$	293	$	304	$	75	$	54,963	$	—	$	—	$	55,635
Installment loans:
Performing	$	706,050	$	405,796	$	437,711	$	68,720	$	2,168	$	1,123	$	—	$	—	$	1,621,568
Non-performing	286		615		1,687		194		4		61		—		—		2,847
Total installment loans	$	706,336	$	406,411	$	439,398	$	68,914	$	2,172	$	1,184	$	—	$	—	$	1,624,415
Total consumer loans	$	710,817	$	414,683	$	453,568	$	81,651	$	9,651	$	149,422	$	108,411	$	—	$	1,928,203
Loans and leases receivable	$	1,700,985	$	1,249,900	$	1,154,989	$	620,329	$	786,670	$	1,259,055	$	1,198,671	$	—	$	7,970,599

	Term Loans Amortized Cost Basis by Origination Year as of December 31, 2020
(amounts in thousands)	2020		2019		2018		2017		2016		Prior		Revolving loans amortized cost basis		Revolving loans converted to term		Total
Multi-family loans:
Pass	$	150,835	$	23,716	$	299,319	$	535,510	$	227,296	$	420,809	$	—	$	—	$	1,657,485
Special mention	—		—		—		20,901		10,394		26,708		—		—		58,003
Substandard	—		—		—		34,197		8,256		3,360		—		—		45,813
Doubtful	—		—		—		—		—		—		—		—		—
Total multi-family loans	$	150,835	$	23,716	$	299,319	$	590,608	$	245,946	$	450,877	$	—	$	—	$	1,761,301
Commercial and industrial loans and leases:
Pass	$	729,270	$	373,050	$	141,943	$	116,793	$	45,367	$	71,502	$	717,007	$	—	$	2,194,932
Special mention	13,200		1,117		436		113		516		21		17,524		—		32,927
Substandard	9,968		6,890		19,065		5,901		8,318		2,722		8,718		—		61,582
Doubtful	—		—		—		—		—		—		—		—		—
Total commercial and industrial loans and leases	$	752,438	$	381,057	$	161,444	$	122,807	$	54,201	$	74,245	$	743,249	$	—	$	2,289,441
Commercial real estate owner occupied loans:
Pass	$	82,343	$	168,977	$	72,615	$	70,642	$	46,510	$	91,798	$	741	$	—	$	533,626
Special mention	—		4,464		—		9,056		—		555		—		—		14,075
Substandard	—		2,848		9,499		342		2,231		9,717		—		—		24,637
Doubtful	—		—		—		—		—		—		—		—		—
Total commercial real estate owner occupied loans	$	82,343	$	176,289	$	82,114	$	80,040	$	48,741	$	102,070	$	741	$	—	$	572,338
Commercial real estate non-owner occupied:
Pass	$	143,231	$	105,430	$	97,882	$	157,835	$	155,168	$	313,559	$	—	$	—	$	973,105
Special mention	39,994		—		—		66,745		24,218		14,613		—		—		145,570
Substandard	—		—		17,741		20,611		366		39,171		—		—		77,889
Doubtful	—		—				—		—		—		—		—		—
Total commercial real estate non-owner occupied loans	$	183,225	$	105,430	$	115,623	$	245,191	$	179,752	$	367,343	$	—	$	—	$	1,196,564
Construction:
Pass	$	19,932	$	105,466	$	4,954	$	—	$	9,700	$	—	$	853	$	—	$	140,905
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—		—
Total construction loans	$	19,932	$	105,466	$	4,954	$	—	$	9,700	$	—	$	853	$	—	$	140,905
Total commercial loans and leases receivable	$	1,188,773	$	791,958	$	663,454	$	1,038,646	$	538,340	$	994,535	$	744,843	$	—	$	5,960,549
Residential real estate loans:
Performing	$	6,708	$	13,617	$	6,810	$	10,850	$	38,143	$	69,496	$	161,576	$	—	$	307,200
Non-performing	—		—		160		785		1,350		4,395		3,280		—		9,970
Total residential real estate loans	$	6,708	$	13,617	$	6,970	$	11,635	$	39,493	$	73,891	$	164,856	$	—	$	317,170
Manufactured housing loans:
Performing	$	—	$	295	$	609	$	76	$	41	$	56,837	$	—	$	—	$	57,858
Non-performing	—		—		—		—		—		4,385		—		—		4,385
Total manufactured housing loans	$	—	$	295	$	609	$	76	$	41	$	61,222	$	—	$	—	$	62,243
Installment loans:
Performing	$	319,453	$	791,235	$	114,988	$	4,736	$	514	$	1,204	$	—	$	—	$	1,232,130
Non-performing	305		2,326		485		41		2		117		—		—		3,276
Total installment loans	$	319,758	$	793,561	$	115,473	$	4,777	$	516	$	1,321	$	—	$	—	$	1,235,406
Total consumer loans	$	326,466	$	807,473	$	123,052	$	16,488	$	40,050	$	136,434	$	164,856	$	—	$	1,614,819
Loans and leases receivable	$	1,515,239	$	1,599,431	$	786,506	$	1,055,134	$	578,390	$	1,130,969	$	909,699	$	—	$	7,575,368

Schedule of Loan Purchases and Sales

Purchases and sales of loans were as follows for the three and nine months ended September 30, 2021 and 2020:

	Three Months Ended September 30,				Nine Months Ended September 30,
(amounts in thousands)	2021		2020		2021		2020
Purchases (1)
Loans receivable, PPP	$	602,175	$	—	$	1,223,662	$	—
Residential real estate	—		—		—		495
Installment (2)	50,001		15,700		165,850		225,468
Total	$	652,176	$	15,700	$	1,389,512	$	225,963
Sales (3)
Multi-family	$	—	$	—	$	19,443	$	—
Commercial and industrial	6,176		3,968		35,166		3,968
Commercial real estate owner occupied	5,728		—		12,426		—
Commercial real estate non-owner occupied	—		17,600		18,366		17,600
Residential real estate	14,549		—		42,735		—
Installment	103,897		—		132,715		1,822
Total	$	130,350	$	21,568	$	260,851	$	23,390

(1)Amounts reported in the above table are the unpaid principal balance at time of purchase. The purchase price was 99.2% and 98.1% of loans outstanding for the three months ended September 30, 2021 and 2020, respectively. The purchase price was 101.0% and 100.2% of loans outstanding for the nine months ended September 30, 2021 and 2020, respectively.

(2)Installment loan purchases for the three and nine months ended September 30, 2021 and 2020 consist of third-party originated unsecured consumer loans. None of the loans are considered sub-prime at the time of origination. Customers considers sub-prime borrowers to be those with FICO scores below 660.

(3)For the three months ended September 30, 2021 and 2020, loan sales resulted in net gains of $5.8 million and $0.3 million, respectively, included in gain (loss) on sale of SBA and other loans and mortgage banking income in the consolidated statements of income. For the nine months ended September 30, 2021 and 2020, loan sales resulted in net gains of $10.1 million and $0.3 million, respectively.