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

3 Months Ended

Mar. 31, 2022

Receivables [Abstract]

Schedule of Loans and Leases Receivable

The following table presents loans and leases receivable as of March 31, 2022 and December 31, 2021.

(amounts in thousands)	March 31, 2022		December 31, 2021
Loans and leases receivable, mortgage warehouse, at fair value	$	1,755,758	$	2,284,325
Loans receivable, PPP	2,195,902		3,250,008
Loans and leases receivable:
Commercial:
Multi-family	1,705,027		1,486,308
Commercial and industrial (1)	3,995,802		3,424,783
Commercial real estate owner occupied	701,893		654,922
Commercial real estate non-owner occupied	1,140,311		1,121,238
Construction	161,024		198,981
Total commercial loans and leases receivable	7,704,057		6,886,232
Consumer:
Residential real estate	466,423		334,730
Manufactured housing	50,669		52,861
Installment	1,897,706		1,744,475
Total consumer loans receivable	2,414,798		2,132,066
Loans and leases receivable	10,118,855		9,018,298
Allowance for credit losses on loans and leases	(145,847)		(137,804)
Total loans and leases receivable, net of allowance for credit losses on loans and leases (2)	$	13,924,668	$	14,414,827

(1)Includes direct finance equipment leases of $150.7 million and $146.5 million at March 31, 2022 and December 31, 2021, respectively.

(2)Includes deferred (fees) costs and unamortized (discounts) premiums, net of $(22.8) million and $(52.0) million at March 31, 2022 and December 31, 2021, 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 March 31, 2022 and December 31, 2021:

	March 31, 2022
(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	$	10,690	$	—	$	16,181	$	26,871	$	1,678,156	$	1,705,027
Commercial and industrial	2,591		92		5,432		8,115		3,987,687		3,995,802
Commercial real estate owner occupied	2,935		—		1,046		3,981		697,912		701,893
Commercial real estate non-owner occupied	—		—		1,302		1,302		1,139,009		1,140,311
Construction	—		—		—		—		161,024		161,024
Residential real estate	5,151		446		4,808		10,405		456,018		466,423
Manufactured housing	975		280		4,488		5,743		44,926		50,669
Installment	7,974		4,868		4,865		17,707		1,879,999		1,897,706
Total	$	30,316	$	5,686	$	38,122	$	74,124	$	10,044,731	$	10,118,855

	December 31, 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	$	1,682	$	2,707	$	18,235	$	22,624	$	1,463,684	$	1,486,308
Commercial and industrial	2,093		95		5,929		8,117		3,416,666		3,424,783
Commercial real estate owner occupied	287		—		1,304		1,591		653,331		654,922
Commercial real estate non-owner occupied	—		—		2,815		2,815		1,118,423		1,121,238
Construction	—		—		—		—		198,981		198,981
Residential real estate	4,655		789		4,390		9,834		324,896		334,730
Manufactured housing	2,308		768		4,949		8,025		44,836		52,861
Installment	7,349		4,295		3,783		15,427		1,729,048		1,744,475
Total	$	18,374	$	8,654	$	41,405	$	68,433	$	8,949,865	$	9,018,298

(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 tables exclude PPP loans of $2.2 billion, of which $37.8 million were 30-59 days past due and $88.3 million were 60 days or more past due as of March 31, 2022, and PPP loans of $3.3 billion, of which $6.3 million were 30-59 days past due and $21.8 million were 60 days or more past due as of December 31, 2021. Claims for guarantee payments are submitted to the SBA for eligible PPP loans more than 60 days past due.

(3)Includes PCD loans of $9.4 million and $9.9 million at March 31, 2022 and December 31, 2021, 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.

	March 31, 2022 (1)						December 31, 2021 (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	$	17,869	$	—	$	17,869	$	22,654	$	—	$	22,654
Commercial and industrial	5,490		—		5,490		5,837		259		6,096
Commercial real estate owner occupied	2,191		—		2,191		2,475		—		2,475
Commercial real estate non-owner occupied	1,302		—		1,302		2,815		—		2,815
Residential real estate	8,124		—		8,124		7,727		—		7,727
Manufactured housing	—		3,430		3,430		—		3,563		3,563
Installment	—		4,865		4,865		—		3,783		3,783
Total	$	34,976	$	8,295	$	43,271	$	41,508	$	7,605	$	49,113

(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 months ended March 31, 2022 and 2021, and the loans and leases and ACL by loan and lease type 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 March 31, 2022
Ending balance, December 31, 2021	$	4,477	$	12,702	$	3,213	$	6,210	$	692	$	2,383	$	4,278	$	103,849	$	137,804
Charge-offs	—		(301)		—		—		—		(4)		—		(8,865)		(9,170)
Recoveries	337		360		7		8		113		6		—		1,113		1,944
Provision (benefit) for credit losses on loans and leases	2,623		(1,996)		621		(263)		134		2,300		64		11,786		15,269
Ending balance, March 31, 2022	$	7,437	$	10,765	$	3,841	$	5,955	$	939	$	4,685	$	4,342	$	107,883	$	145,847
Three Months Ended March 31, 2021
Ending balance, at 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)		(635)		(142)		—		—		(50)		—		(12,687)		(14,646)
Recoveries	—		260		8		10		5		10		—		1,832		2,125
Provision (benefit) for credit losses on loans and leases	(3,462)		(4,361)		(3,443)		(7,841)		(1,773)		(728)		(390)		19,079		(2,919)
Ending Balance, March 31, 2021	$	8,026	$	7,503	$	5,935	$	11,621	$	4,103	$	3,209	$	4,800	$	83,539	$	128,736

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 months ended March 31, 2022 and 2021. There were no modifications that involved forgiveness of debt for the three months ended March 31, 2022 and 2021.

	Three Months Ended March 31,
	2022			2021
(dollars in thousands)	Number of loans	Recorded investment		Number of loans	Recorded investment
Interest-rate reductions	10	$	346	8	$	184
Other (1)	32	451		20	541
Total	42	$	797	28	$	725

(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:

	March 31, 2022			March 31, 2021
(dollars in thousands)	Number of loans	Recorded investment		Number of loans	Recorded investment
Manufactured housing	1	$	49	3	$	48
Residential real estate	—	—		1	56
Installment	23	276		16	250
Total loans	24	$	325	20	$	354

Credit Ratings of Covered and Non-Covered Loan Portfolio

The following tables present the credit ratings of loans and leases receivable as of March 31, 2022 and December 31, 2021.

	Term Loans Amortized Cost Basis by Origination Year as of March 31, 2022
(amounts in thousands)	2022		2021		2020		2019		2018		Prior		Revolving loans amortized cost basis		Revolving loans converted to term		Total
Multi-family loans:
Pass	$	385,034	$	400,699	$	132,732	$	22,884	$	126,850	$	520,645	$	—	$	—	$	1,588,844
Special mention	—		1,523		—				5,033		49,200		—		—		55,756
Substandard	—		—		—		—		—		60,427		—		—		60,427
Doubtful	—		—		—		—		—		—		—		—		—
Total multi-family loans	$	385,034	$	402,222	$	132,732	$	22,884	$	131,883	$	630,272	$	—	$	—	$	1,705,027
Commercial and industrial loans and leases:
Pass	$	1,008,340	$	627,255	$	284,982	$	224,881	$	57,750	$	136,853	$	1,578,024	$	—	$	3,918,085
Special mention	—		—		57		156		—		36,223		2,524		—		38,960
Substandard			20,400		4,901		4,565		86		1,464		7,341		—		38,757
Doubtful	—		—		—		—		—		—		—		—		—
Total commercial and industrial loans and leases	$	1,008,340	$	647,655	$	289,940	$	229,602	$	57,836	$	174,540	$	1,587,889	$	—	$	3,995,802
Commercial real estate owner occupied loans:
Pass	$	60,055	$	210,933	$	59,025	$	122,135	$	60,968	$	150,564	$	672	$	—	$	664,352
Special mention	—		—		—		3,010		—		2,302		—		—		5,312
Substandard	—		—		—		3,495		9,635		19,099		—		—		32,229
Doubtful	—		—		—		—		—		—		—		—		—
Total commercial real estate owner occupied loans	$	60,055	$	210,933	$	59,025	$	128,640	$	70,603	$	171,965	$	672	$	—	$	701,893
Commercial real estate non-owner occupied:
Pass	$	73,544	$	135,995	$	147,873	$	76,351	$	65,061	$	443,165	$	—	$	—	$	941,989
Special mention	—		—		21,572		—		953		6,069		—		—		28,594
Substandard	—		—		—		29,184		38,409		102,135		—		—		169,728
Doubtful	—		—		—		—		—		—		—		—		—
Total commercial real estate non-owner occupied loans	$	73,544	$	135,995	$	169,445	$	105,535	$	104,423	$	551,369	$	—	$	—	$	1,140,311
Construction:
Pass	$	11,779	$	70,404	$	13,894	$	49,175	$	4,791	$	9,321	$	1,660	$	—	$	161,024
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—		—
Total construction loans	$	11,779	$	70,404	$	13,894	$	49,175	$	4,791	$	9,321	$	1,660	$	—	$	161,024
Total commercial loans and leases receivable	$	1,538,752	$	1,467,209	$	665,036	$	535,836	$	369,536	$	1,537,467	$	1,590,221	$	—	$	7,704,057
Residential real estate loans:
Performing	$	8,713	$	178,623	$	12,064	$	31,045	$	17,126	$	127,537	$	84,904	$	—	$	460,012
Non-performing	—		—		—		329		1,138		4,009		935		—		6,411
Total residential real estate loans	$	8,713	$	178,623	$	12,064	$	31,374	$	18,264	$	131,546	$	85,839	$	—	$	466,423
Manufactured housing loans:
Performing	$	—	$	—	$	—	$	248	$	291	$	46,315	$	—	$	—	$	46,854
Non-performing	—		—		—		—		—		3,815		—		—		3,815
Total manufactured housing loans	$	—	$	—	$	—	$	248	$	291	$	50,130	$	—	$	—	$	50,669
Installment loans:
Performing	$	311,579	$	883,638	$	325,741	$	265,764	$	25,590	$	2,082	$	78,600	$	—	$	1,892,994
Non-performing	—		1,834		1,065		1,534		83		115		81		—		4,712
Total installment loans	$	311,579	$	885,472	$	326,806	$	267,298	$	25,673	$	2,197	$	78,681	$	—	$	1,897,706
Total consumer loans	$	320,292	$	1,064,095	$	338,870	$	298,920	$	44,228	$	183,873	$	164,520	$	—	$	2,414,798
Loans and leases receivable	$	1,859,044	$	2,531,304	$	1,003,906	$	834,756	$	413,764	$	1,721,340	$	1,754,741	$	—	$	10,118,855

	Term Loans Amortized Cost Basis by Origination Year as of December 31, 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	$	403,075	$	133,452	$	23,068	$	209,070	$	282,663	$	316,491	$	—	$	—	$	1,367,819
Special mention	—		—		—		9,936		18,489		28,776		—		—		57,201
Substandard	—		—		—		—		38,216		23,072		—		—		61,288
Doubtful	—		—		—		—		—		—		—		—		—
Total multi-family loans	$	403,075	$	133,452	$	23,068	$	219,006	$	339,368	$	368,339	$	—	$	—	$	1,486,308
Commercial and industrial loans and leases:
Pass	$	974,016	$	337,045	$	266,677	$	86,691	$	55,536	$	89,860	$	1,484,287	$	—	$	3,294,112
Special mention	476		1,408		3,325		4,904		36,252		92		14,662		—		61,119
Substandard	18,786		10,257		9,543		11,586		5,682		6,764		6,934		—		69,552
Doubtful	—		—		—		—		—		—		—		—		—
Total commercial and industrial loans and leases	$	993,278	$	348,710	$	279,545	$	103,181	$	97,470	$	96,716	$	1,505,883	$	—	$	3,424,783
Commercial real estate owner occupied loans:
Pass	$	213,102	$	59,348	$	124,626	$	60,993	$	58,073	$	99,219	$	672	$	—	$	616,033
Special mention	—		—		2,876		318		2,044		572		—		—		5,810
Substandard	—		—		3,750		9,682		8,824		10,823		—		—		33,079
Doubtful	—		—		—		—		—		—		—		—		—
Total commercial real estate owner occupied loans	$	213,102	$	59,348	$	131,252	$	70,993	$	68,941	$	110,614	$	672	$	—	$	654,922
Commercial real estate non-owner occupied:
Pass	$	136,897	$	149,898	$	95,504	$	66,040	$	153,509	$	310,435	$	—	$	—	$	912,283
Special mention	—		21,694		11,113		9,373		43,215		20,540		—		—		105,935
Substandard	—		—		—		35,846		20,516		46,658		—		—		103,020
Doubtful	—		—		—		—		—		—		—		—		—
Total commercial real estate non-owner occupied loans	$	136,897	$	171,592	$	106,617	$	111,259	$	217,240	$	377,633	$	—	$	—	$	1,121,238
Construction:
Pass	$	57,105	$	49,199	$	77,622	$	4,828	$	—	$	9,414	$	813	$	—	$	198,981
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—		—
Total construction loans	$	57,105	$	49,199	$	77,622	$	4,828	$	—	$	9,414	$	813	$	—	$	198,981
Total commercial loans and leases receivable	$	1,803,457	$	762,301	$	618,104	$	509,267	$	723,019	$	962,716	$	1,507,368	$	—	$	6,886,232
Residential real estate loans:
Performing	$	107,854	$	8,251	$	21,096	$	11,389	$	6,707	$	84,035	$	87,438	$	—	$	326,770
Non-performing	—		—		335		1,015		669		3,587		2,354		—		7,960
Total residential real estate loans	$	107,854	$	8,251	$	21,431	$	12,404	$	7,376	$	87,622	$	89,792	$	—	$	334,730
Manufactured housing loans:
Performing	$	—	$	—	$	253	$	299	$	73	$	47,537	$	—	$	—	48,162
Non-performing	—		—		—		—		—		4,699		—		—		4,699
Total manufactured housing loans	$	—	$	—	$	253	$	299	$	73	$	52,236	$	—	$	—	$	52,861
Installment loans:
Performing	$	973,525	$	390,788	$	341,582	$	31,481	$	1,601	$	1,016	$	25	$	—	$	1,740,018
Non-performing	1,162		1,002		2,074		156		2		61		—		—		4,457
Total installment loans	$	974,687	$	391,790	$	343,656	$	31,637	$	1,603	$	1,077	$	25	$	—	$	1,744,475
Total consumer loans	$	1,082,541	$	400,041	$	365,340	$	44,340	$	9,052	$	140,935	$	89,817	$	—	$	2,132,066
Loans and leases receivable	$	2,885,998	$	1,162,342	$	983,444	$	553,607	$	732,071	$	1,103,651	$	1,597,185	$	—	$	9,018,298

Schedule of Loan Purchases and Sales

Purchases and sales of loans were as follows for the three months ended March 31, 2022 and 2021:

	Three Months Ended March 31,
(amounts in thousands)	2022		2021
Purchases (1)
Residential real estate	$	146,874	$	—
Installment (2)	59,456		115,849
Total	$	206,330	$	115,849
Sales (3)
Commercial and industrial	$	8,840	$	18,931
Commercial real estate owner occupied	5,441		2,237
Commercial real estate non-owner occupied	—		18,366
Total	$	14,281	$	39,534

(1)Amounts reported in the above table are the unpaid principal balance at time of purchase. The purchase price was 98.1% and 101.0% of loans outstanding for the three months ended March 31, 2022 and 2021, respectively.

(2)Installment loan purchases for the three months ended March 31, 2022 and 2021 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 March 31, 2022 and 2021, loan sales resulted in net gains of $2.1 million and $1.6 million, respectively, included in gain (loss) on sale of SBA and other loans and mortgage banking income in the consolidated statements of income.