| Loans Receivable |
Note 3 — Loans Receivable
The Board of Directors and management review and approve the Bank’s loan policy and procedures on a regular basis to reflect matters such as regulatory and organizational structure changes, strategic planning revisions, concentrations of credit, loan delinquencies and nonperforming loans, and problem loans.
Real estate loans are loans secured by liens or interest in real estate, to provide for the purchase, construction or refinance on real estate properties. Commercial and industrial loans consist of commercial term loans, commercial lines of credit and can include SBA loans. Alternatively, SBA loans can be real estate secured. Equipment financing agreements are typically secured by the business assets being financed. We maintain management loan review and monitoring departments that review and monitor pass graded loans as well as problem loans to prevent further deterioration.
Concentrations of Credit: The majority of the Bank’s loan portfolio consists of commercial real estate loans.
Loans receivable, net
Loans receivable consisted of the following as of the dates indicated:
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
|
(in thousands) |
|
Real estate loans: |
|
|
|
|
|
|
Commercial property |
|
|
|
|
|
|
Retail |
|
$ |
1,023,608 |
|
|
$ |
970,134 |
|
Hospitality |
|
|
646,893 |
|
|
|
717,692 |
|
Other (1) |
|
|
2,053,675 |
|
|
|
1,919,033 |
|
Total commercial property loans |
|
|
3,724,176 |
|
|
|
3,606,859 |
|
Construction |
|
|
109,205 |
|
|
|
95,006 |
|
Residential (2) |
|
|
734,472 |
|
|
|
400,546 |
|
Total real estate loans |
|
|
4,567,853 |
|
|
|
4,102,411 |
|
Commercial and industrial loans (3) |
|
|
804,492 |
|
|
|
561,831 |
|
Equipment financing agreements |
|
|
594,788 |
|
|
|
487,299 |
|
Loans receivable |
|
|
5,967,133 |
|
|
|
5,151,541 |
|
Allowance for credit losses |
|
|
(71,523 |
) |
|
|
(72,557 |
) |
Loans receivable, net |
|
$ |
5,895,610 |
|
|
$ |
5,078,984 |
|
(1)Includes, among other property types, mixed-use, gas station, apartment, office, industrial, faith-based facilities and warehouse; the remaining real estate categories represent less than 1% of the Bank's total loans receivable.
(2)
Includes $2.4 million and $3.9 million of home equity loans and lines, and $4.6 million and $6.0 million of personal loans at December 31, 2022 and 2021, respectively.
(3)
At December 31, 2022 and 2021, PPP loans were $0.9 million and $3.0 million, respectively.
Accrued interest on loans was $16.0 million and $10.1 million at December 31, 2022 and 2021, respectively.
At December 31, 2022 and 2021, loans of $1.99 billion and $2.30 billion, respectively, were pledged to secure advances from the FHLB.
Loans Held for Sale
The following table details the information on SBA loans held for sale by portfolio segment for the years ended December 31, 2022 and 2021:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate |
|
|
Commercial
and Industrial |
|
|
Total |
|
|
|
(in thousands) |
|
December 31, 2022 |
|
|
|
|
|
|
|
|
|
Balance at beginning of period |
|
$ |
6,954 |
|
|
$ |
6,388 |
|
|
$ |
13,342 |
|
Originations and transfers |
|
|
99,547 |
|
|
|
51,278 |
|
|
|
150,825 |
|
Sales |
|
|
(102,720 |
) |
|
|
(53,389 |
) |
|
|
(156,109 |
) |
Principal paydowns and amortization |
|
|
(6 |
) |
|
|
(9 |
) |
|
|
(15 |
) |
Balance at end of period |
|
$ |
3,775 |
|
|
$ |
4,268 |
|
|
$ |
8,043 |
|
|
|
|
|
|
|
|
|
|
|
December 31, 2021 |
|
|
|
|
|
|
|
|
|
Balance at beginning of period |
|
$ |
8,042 |
|
|
$ |
526 |
|
|
$ |
8,568 |
|
Originations and transfers |
|
|
87,775 |
|
|
|
177,968 |
|
|
|
265,743 |
|
Sales |
|
|
(88,858 |
) |
|
|
(172,995 |
) |
|
|
(261,853 |
) |
Principal paydowns and amortization |
|
|
(5 |
) |
|
|
889 |
|
|
|
884 |
|
Balance at end of period |
|
$ |
6,954 |
|
|
$ |
6,388 |
|
|
$ |
13,342 |
|
Loans held for sale was comprised of $8.0 million and $13.3 million of the guaranteed portion of SBA 7(a) loans at December 31, 2022 and 2021, respectively. All second draw PPP loans were sold by the third quarter of 2021. For the year ended December 31, 2021, the Company recognized $3.0 million of gains on the sale of $132.7 million second draw PPP loans.
Allowance for credit losses
The following table details the information on the allowance for credit losses by portfolio segment for the years ended December 31, 2022, 2021 and 2020:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real
Estate |
|
|
Commercial
and
Industrial |
|
|
Equipment financing agreements |
|
|
Total |
|
|
|
(in thousands) |
|
December 31, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses: |
|
|
|
|
|
|
|
|
|
|
|
|
Beginning balance |
|
$ |
48,890 |
|
|
$ |
12,418 |
|
|
$ |
11,249 |
|
|
$ |
72,557 |
|
Chargeoffs |
|
|
(1,886 |
) |
|
|
(524 |
) |
|
|
(2,312 |
) |
|
|
(4,722 |
) |
Recoveries |
|
|
848 |
|
|
|
1,178 |
|
|
|
1,322 |
|
|
|
3,348 |
|
Provision (recovery) for credit losses |
|
|
(3,826 |
) |
|
|
2,195 |
|
|
|
1,971 |
|
|
|
340 |
|
Ending balance |
|
$ |
44,026 |
|
|
$ |
15,267 |
|
|
$ |
12,230 |
|
|
$ |
71,523 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses: |
|
|
|
|
|
|
|
|
|
|
|
|
Beginning balance |
|
$ |
51,876 |
|
|
$ |
21,410 |
|
|
$ |
17,140 |
|
|
$ |
90,426 |
|
Chargeoffs |
|
|
(1,427 |
) |
|
|
(546 |
) |
|
|
(4,400 |
) |
|
|
(6,373 |
) |
Recoveries |
|
|
10,807 |
|
|
|
897 |
|
|
|
946 |
|
|
|
12,650 |
|
Provision (recovery) for credit losses |
|
|
(12,366 |
) |
|
|
(9,343 |
) |
|
|
(2,437 |
) |
|
|
(24,146 |
) |
Ending balance |
|
$ |
48,890 |
|
|
$ |
12,418 |
|
|
$ |
11,249 |
|
|
$ |
72,557 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses: |
|
|
|
|
|
|
|
|
|
|
|
|
Beginning balance |
|
$ |
36,435 |
|
|
$ |
16,206 |
|
|
$ |
8,767 |
|
|
$ |
61,408 |
|
Adjustment related to adoption of ASU 2016-13 |
|
|
14,028 |
|
|
|
(2,497 |
) |
|
|
5,902 |
|
|
|
17,433 |
|
Adjusted balance |
|
|
50,463 |
|
|
|
13,709 |
|
|
|
14,669 |
|
|
|
78,841 |
|
Chargeoffs |
|
|
(15,567 |
) |
|
|
(13,312 |
) |
|
|
(5,073 |
) |
|
|
(33,952 |
) |
Recoveries |
|
|
2,124 |
|
|
|
336 |
|
|
|
603 |
|
|
|
3,063 |
|
Provision (recovery) for credit losses |
|
|
14,856 |
|
|
|
20,677 |
|
|
|
6,941 |
|
|
|
42,474 |
|
Ending balance |
|
$ |
51,876 |
|
|
$ |
21,410 |
|
|
$ |
17,140 |
|
|
$ |
90,426 |
|
The table below presents the allowance for credit losses by portfolio segment as a percentage of the total allowance for credit losses and loans by portfolio segment as a percentage of the aggregate investment of loans receivable for the years ended December 31, 2022 and 2021:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2022 |
|
|
December 31, 2021 |
|
|
|
Allowance
Amount |
|
|
Percentage
of Total
Allowance |
|
|
Total
Loans |
|
|
Percentage
of Total
Loans |
|
|
Allowance
Amount |
|
|
Percentage
of Total
Allowance |
|
|
Total
Loans |
|
|
Percentage
of Total
Loans |
|
|
|
(dollars in thousands) |
|
Real estate loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial property |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail |
|
$ |
7,872 |
|
|
|
11.0 |
% |
|
$ |
1,023,608 |
|
|
|
17.2 |
% |
|
$ |
6,579 |
|
|
|
9.1 |
% |
|
$ |
970,134 |
|
|
|
18.8 |
% |
Hospitality |
|
|
13,407 |
|
|
|
18.7 |
|
|
|
646,893 |
|
|
|
10.8 |
|
|
|
22,670 |
|
|
|
31.2 |
|
|
|
717,692 |
|
|
|
13.9 |
|
Other |
|
|
15,349 |
|
|
|
21.5 |
|
|
|
2,053,675 |
|
|
|
34.4 |
|
|
|
15,065 |
|
|
|
20.8 |
|
|
|
1,919,033 |
|
|
|
37.3 |
|
Total commercial property loans |
|
|
36,628 |
|
|
|
51.2 |
|
|
|
3,724,176 |
|
|
|
62.4 |
|
|
|
44,314 |
|
|
|
61.1 |
|
|
|
3,606,859 |
|
|
|
70.0 |
|
Construction |
|
|
4,022 |
|
|
|
5.7 |
|
|
|
109,205 |
|
|
|
1.8 |
|
|
|
4,078 |
|
|
|
5.6 |
|
|
|
95,006 |
|
|
|
1.8 |
|
Residential |
|
|
3,376 |
|
|
|
4.7 |
|
|
|
734,472 |
|
|
|
12.4 |
|
|
|
498 |
|
|
|
0.7 |
|
|
|
400,546 |
|
|
|
7.8 |
|
Total real estate loans |
|
|
44,026 |
|
|
|
61.6 |
|
|
|
4,567,853 |
|
|
|
76.6 |
|
|
|
48,890 |
|
|
|
67.4 |
|
|
|
4,102,411 |
|
|
|
79.6 |
|
Commercial and industrial loans |
|
|
15,267 |
|
|
|
21.3 |
|
|
|
804,492 |
|
|
|
13.5 |
|
|
|
12,418 |
|
|
|
17.1 |
|
|
|
561,831 |
|
|
|
10.9 |
|
Equipment financing agreements |
|
|
12,230 |
|
|
|
17.1 |
|
|
|
594,788 |
|
|
|
10.0 |
|
|
|
11,249 |
|
|
|
15.5 |
|
|
|
487,299 |
|
|
|
9.5 |
|
Total |
|
$ |
71,523 |
|
|
|
100.0 |
% |
|
$ |
5,967,133 |
|
|
|
100.0 |
% |
|
$ |
72,557 |
|
|
|
100.0 |
% |
|
$ |
5,151,541 |
|
|
|
100.0 |
% |
The following table represents the amortized cost basis of collateral-dependent loans by class of loans as of December 31, 2022 and 2021, for which repayment is expected to be obtained through the sale of the underlying collateral and any collateral dependent loans that are still accruing but are considered nonperforming.
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
|
(in thousands) |
|
Real estate loans: |
|
|
|
|
|
|
Commercial property |
|
|
|
|
|
|
Retail |
|
$ |
1,930 |
|
|
$ |
1,917 |
|
Hospitality |
|
|
— |
|
|
|
— |
|
Other (1) |
|
|
256 |
|
|
|
499 |
|
Total commercial property loans |
|
|
2,186 |
|
|
|
2,416 |
|
Residential |
|
|
508 |
|
|
|
982 |
|
Total real estate loans |
|
|
2,694 |
|
|
|
3,398 |
|
Total |
|
$ |
2,694 |
|
|
$ |
3,398 |
|
(1)Includes, among other property types, mixed-use, gas station, apartment, office, industrial, faith-based facilities and warehouse; the remaining real estate categories represent less than one percent of the Bank's total loans receivable.
Loan Quality Indicators
As part of the on-going monitoring of the quality of our loan portfolio, we utilize an internal loan grading system to identify credit risk and assign an appropriate grade (from 1 to 8) for each loan in our portfolio. A third-party loan review is required on an annual basis. Additional adjustments are made when determined to be necessary. The loan grade definitions are as follows:
Pass and Pass-Watch: Pass and Pass-Watch loans, grades (1-4), are in compliance with the Bank’s credit policy and regulatory requirements, and do not exhibit any potential or defined weaknesses as defined under “Special Mention,” “Substandard” or “Doubtful.” This category is the strongest level of the Bank’s loan grading system. It consists of all performing loans with no identified credit weaknesses. It includes cash and stock/security secured loans or other investment grade loans.
Special Mention: A Special Mention loan, grade (5), has potential weaknesses that deserve management’s close attention. If not corrected, these potential weaknesses may result in deterioration of the repayment of the debt and result in a Substandard classification. Loans that have significant actual, not potential, weaknesses are considered more severely classified.
Substandard: A Substandard loan, grade (6), has a well-defined weakness that jeopardizes the liquidation of the debt. A loan graded Substandard is not protected by the sound worth and paying capacity of the borrower, or of the value and type of collateral pledged. With a Substandard loan, there is a distinct possibility that the Bank will sustain some loss if the weaknesses or deficiencies are not corrected.
Doubtful: A Doubtful loan, grade (7), is one that has critical weaknesses that would make the collection or liquidation of the full amount due improbable. However, there may be pending events which may work to strengthen the loan, and therefore the amount or timing of a possible loss cannot be determined at the current time.
Loss: A loan classified as Loss, grade (8), is considered uncollectible and of such little value that their continuance as active bank assets is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this asset even though partial recovery may be possible in the future. Loans classified as Loss will be charged off in a timely manner.
Under regulatory guidance, loans graded special mention or worse are considered criticized loans, and loans graded substandard or worse are considered classified loans.
As of December 31, 2022 and 2021, the recorded investment in pass/pass-watch, special mention and classified (substandard, doubtful and loss) loans, disaggregated by loan class, were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass/Pass-
Watch |
|
|
Special
Mention |
|
|
Classified |
|
|
Total |
|
|
|
(in thousands) |
|
December 31, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial property |
|
|
|
|
|
|
|
|
|
|
|
|
Retail |
|
$ |
1,016,442 |
|
|
$ |
5,236 |
|
|
$ |
1,930 |
|
|
$ |
1,023,608 |
|
Hospitality |
|
|
628,698 |
|
|
|
— |
|
|
|
18,195 |
|
|
|
646,893 |
|
Other |
|
|
2,006,464 |
|
|
|
29,748 |
|
|
|
17,463 |
|
|
|
2,053,675 |
|
Total commercial property loans |
|
|
3,651,604 |
|
|
|
34,984 |
|
|
|
37,588 |
|
|
|
3,724,176 |
|
Construction |
|
|
109,205 |
|
|
|
— |
|
|
|
— |
|
|
|
109,205 |
|
Residential |
|
|
733,464 |
|
|
|
500 |
|
|
|
508 |
|
|
|
734,472 |
|
Total real estate loans |
|
|
4,494,273 |
|
|
|
35,484 |
|
|
|
38,096 |
|
|
|
4,567,853 |
|
Commercial and industrial loans |
|
|
758,584 |
|
|
|
43,529 |
|
|
|
2,379 |
|
|
|
804,492 |
|
Equipment financing agreements |
|
|
589,071 |
|
|
|
— |
|
|
|
5,717 |
|
|
|
594,788 |
|
Total loans receivable |
|
$ |
5,841,928 |
|
|
$ |
79,013 |
|
|
$ |
46,192 |
|
|
$ |
5,967,133 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial property |
|
|
|
|
|
|
|
|
|
|
|
|
Retail |
|
$ |
952,651 |
|
|
$ |
5,949 |
|
|
$ |
11,534 |
|
|
$ |
970,134 |
|
Hospitality |
|
|
662,834 |
|
|
|
36,248 |
|
|
|
18,610 |
|
|
|
717,692 |
|
Other |
|
|
1,891,877 |
|
|
|
9,846 |
|
|
|
17,310 |
|
|
|
1,919,033 |
|
Total commercial property loans |
|
|
3,507,362 |
|
|
|
52,043 |
|
|
|
47,454 |
|
|
|
3,606,859 |
|
Construction |
|
|
74,439 |
|
|
|
20,567 |
|
|
|
— |
|
|
|
95,006 |
|
Residential |
|
|
396,007 |
|
|
|
3,557 |
|
|
|
982 |
|
|
|
400,546 |
|
Total real estate loans |
|
|
3,977,808 |
|
|
|
76,167 |
|
|
|
48,436 |
|
|
|
4,102,411 |
|
Commercial and industrial loans |
|
|
537,652 |
|
|
|
19,127 |
|
|
|
5,052 |
|
|
|
561,831 |
|
Equipment financing agreements |
|
|
480,154 |
|
|
|
— |
|
|
|
7,145 |
|
|
|
487,299 |
|
Total loans receivable |
|
$ |
4,995,614 |
|
|
$ |
95,294 |
|
|
$ |
60,633 |
|
|
$ |
5,151,541 |
|
Loans by Vintage Year and Risk Rating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Term Loans |
|
|
|
|
|
|
|
|
|
Amortized Cost Basis by Origination Year (1) |
|
|
|
|
|
|
|
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
|
Prior |
|
|
Revolving
Loans
Amortized
Cost Basis |
|
|
Total |
|
|
|
(in thousands) |
|
December 31, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial property |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk Rating |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass / Pass Watch |
|
$ |
1,184,361 |
|
|
$ |
901,029 |
|
|
$ |
600,740 |
|
|
$ |
404,786 |
|
|
$ |
301,950 |
|
|
$ |
207,861 |
|
|
$ |
50,877 |
|
|
$ |
3,651,604 |
|
Special Mention |
|
|
847 |
|
|
|
13,384 |
|
|
|
5,857 |
|
|
|
7,115 |
|
|
|
— |
|
|
|
6,080 |
|
|
|
1,701 |
|
|
|
34,984 |
|
Classified |
|
|
— |
|
|
|
— |
|
|
|
412 |
|
|
|
4,312 |
|
|
|
12,304 |
|
|
|
20,560 |
|
|
|
— |
|
|
|
37,588 |
|
Total commercial property |
|
|
1,185,208 |
|
|
|
914,413 |
|
|
|
607,009 |
|
|
|
416,213 |
|
|
|
314,254 |
|
|
|
234,501 |
|
|
|
52,578 |
|
|
|
3,724,176 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk Rating |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass / Pass Watch |
|
|
41,662 |
|
|
|
67,543 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
109,205 |
|
Special Mention |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Classified |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total construction |
|
|
41,662 |
|
|
|
67,543 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
109,205 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk Rating |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass / Pass Watch |
|
|
405,975 |
|
|
|
173,236 |
|
|
|
13,102 |
|
|
|
232 |
|
|
|
731 |
|
|
|
134,766 |
|
|
|
5,422 |
|
|
|
733,464 |
|
Special Mention |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
500 |
|
|
|
500 |
|
Classified |
|
|
12 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
496 |
|
|
|
— |
|
|
|
508 |
|
Total residential |
|
|
405,987 |
|
|
|
173,236 |
|
|
|
13,102 |
|
|
|
232 |
|
|
|
731 |
|
|
|
135,262 |
|
|
|
5,922 |
|
|
|
734,472 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total real estate loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk Rating |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass / Pass Watch |
|
|
1,631,998 |
|
|
|
1,141,808 |
|
|
|
613,842 |
|
|
|
405,018 |
|
|
|
302,681 |
|
|
|
342,627 |
|
|
|
56,299 |
|
|
|
4,494,273 |
|
Special Mention |
|
|
847 |
|
|
|
13,384 |
|
|
|
5,857 |
|
|
|
7,115 |
|
|
|
— |
|
|
|
6,080 |
|
|
|
2,201 |
|
|
|
35,484 |
|
Classified |
|
|
12 |
|
|
|
— |
|
|
|
412 |
|
|
|
4,312 |
|
|
|
12,304 |
|
|
|
21,056 |
|
|
|
— |
|
|
|
38,096 |
|
Total real estate loans |
|
|
1,632,857 |
|
|
|
1,155,192 |
|
|
|
620,111 |
|
|
|
416,445 |
|
|
|
314,985 |
|
|
|
369,763 |
|
|
|
58,500 |
|
|
|
4,567,853 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk Rating |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass / Pass Watch |
|
|
368,778 |
|
|
|
100,537 |
|
|
|
39,577 |
|
|
|
24,117 |
|
|
|
7,342 |
|
|
|
12,282 |
|
|
|
205,951 |
|
|
|
758,584 |
|
Special Mention |
|
|
— |
|
|
|
9,285 |
|
|
|
— |
|
|
|
— |
|
|
|
29 |
|
|
|
102 |
|
|
|
34,113 |
|
|
|
43,529 |
|
Classified |
|
|
— |
|
|
|
— |
|
|
|
171 |
|
|
|
1,097 |
|
|
|
81 |
|
|
|
391 |
|
|
|
639 |
|
|
|
2,379 |
|
Total commercial and industrial loans |
|
|
368,778 |
|
|
|
109,822 |
|
|
|
39,748 |
|
|
|
25,214 |
|
|
|
7,452 |
|
|
|
12,775 |
|
|
|
240,703 |
|
|
|
804,492 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equipment financing agreements: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk Rating |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass / Pass Watch |
|
|
305,249 |
|
|
|
165,313 |
|
|
|
46,970 |
|
|
|
52,133 |
|
|
|
17,608 |
|
|
|
1,798 |
|
|
|
— |
|
|
|
589,071 |
|
Special Mention |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Classified |
|
|
630 |
|
|
|
2,542 |
|
|
|
311 |
|
|
|
1,581 |
|
|
|
565 |
|
|
|
88 |
|
|
|
— |
|
|
|
5,717 |
|
Total equipment financing agreements |
|
|
305,879 |
|
|
|
167,855 |
|
|
|
47,281 |
|
|
|
53,714 |
|
|
|
18,173 |
|
|
|
1,886 |
|
|
|
— |
|
|
|
594,788 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans receivable: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk Rating |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass / Pass Watch |
|
|
2,306,025 |
|
|
|
1,407,658 |
|
|
|
700,389 |
|
|
|
481,268 |
|
|
|
327,631 |
|
|
|
356,707 |
|
|
|
262,250 |
|
|
|
5,841,928 |
|
Special Mention |
|
|
847 |
|
|
|
22,669 |
|
|
|
5,857 |
|
|
|
7,115 |
|
|
|
29 |
|
|
|
6,182 |
|
|
|
36,314 |
|
|
|
79,013 |
|
Classified |
|
|
642 |
|
|
|
2,542 |
|
|
|
894 |
|
|
|
6,990 |
|
|
|
12,950 |
|
|
|
21,535 |
|
|
|
639 |
|
|
|
46,192 |
|
Total loans receivable |
|
$ |
2,307,514 |
|
|
$ |
1,432,869 |
|
|
$ |
707,140 |
|
|
$ |
495,373 |
|
|
$ |
340,610 |
|
|
$ |
384,424 |
|
|
$ |
299,203 |
|
|
$ |
5,967,133 |
|
(1)Includes extensions, renewals, or modifications of credit contracts, which consist of a new credit decision
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Term Loans |
|
|
|
|
|
|
|
|
|
Amortized Cost Basis by Origination Year (1) |
|
|
|
|
|
|
|
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
Prior |
|
|
Revolving
Loans
Amortized
Cost Basis |
|
|
Total |
|
|
|
(in thousands) |
|
December 31, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial property |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk Rating |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass / Pass Watch |
|
$ |
1,203,197 |
|
|
$ |
706,470 |
|
|
$ |
488,250 |
|
|
$ |
406,288 |
|
|
$ |
277,680 |
|
|
$ |
384,064 |
|
|
$ |
41,413 |
|
|
$ |
3,507,362 |
|
Special Mention |
|
|
— |
|
|
|
18,869 |
|
|
|
7,593 |
|
|
|
— |
|
|
|
6,999 |
|
|
|
16,879 |
|
|
|
1,703 |
|
|
|
52,043 |
|
Classified |
|
|
— |
|
|
|
— |
|
|
|
5,450 |
|
|
|
17,247 |
|
|
|
2,965 |
|
|
|
21,792 |
|
|
|
— |
|
|
|
47,454 |
|
Total commercial property |
|
|
1,203,197 |
|
|
|
725,339 |
|
|
|
501,293 |
|
|
|
423,535 |
|
|
|
287,644 |
|
|
|
422,735 |
|
|
|
43,116 |
|
|
|
3,606,859 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk Rating |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass / Pass Watch |
|
|
73,808 |
|
|
|
631 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
74,439 |
|
Special Mention |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
20,567 |
|
|
|
— |
|
|
|
20,567 |
|
Classified |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total construction |
|
|
73,808 |
|
|
|
631 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
20,567 |
|
|
|
— |
|
|
|
95,006 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk Rating |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass / Pass Watch |
|
|
194,948 |
|
|
|
16,975 |
|
|
|
247 |
|
|
|
19,813 |
|
|
|
73,567 |
|
|
|
82,076 |
|
|
|
8,381 |
|
|
|
396,007 |
|
Special Mention |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
930 |
|
|
|
406 |
|
|
|
2,221 |
|
|
|
— |
|
|
|
3,557 |
|
Classified |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
965 |
|
|
|
17 |
|
|
|
— |
|
|
|
982 |
|
Total residential |
|
|
194,948 |
|
|
|
16,975 |
|
|
|
247 |
|
|
|
20,743 |
|
|
|
74,938 |
|
|
|
84,314 |
|
|
|
8,381 |
|
|
|
400,546 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total real estate loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk Rating |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass / Pass Watch |
|
|
1,471,953 |
|
|
|
724,076 |
|
|
|
488,497 |
|
|
|
426,101 |
|
|
|
351,247 |
|
|
|
466,140 |
|
|
|
49,794 |
|
|
|
3,977,808 |
|
Special Mention |
|
|
— |
|
|
|
18,869 |
|
|
|
7,593 |
|
|
|
930 |
|
|
|
7,405 |
|
|
|
39,667 |
|
|
|
1,703 |
|
|
|
76,167 |
|
Classified |
|
|
— |
|
|
|
— |
|
|
|
5,450 |
|
|
|
17,247 |
|
|
|
3,930 |
|
|
|
21,809 |
|
|
|
— |
|
|
|
48,436 |
|
Total real estate loans |
|
|
1,471,953 |
|
|
|
742,945 |
|
|
|
501,540 |
|
|
|
444,278 |
|
|
|
362,582 |
|
|
|
527,616 |
|
|
|
51,497 |
|
|
|
4,102,411 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk Rating |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass / Pass Watch |
|
|
264,762 |
|
|
|
55,135 |
|
|
|
36,937 |
|
|
|
15,780 |
|
|
|
10,874 |
|
|
|
6,016 |
|
|
|
148,148 |
|
|
|
537,652 |
|
Special Mention |
|
|
— |
|
|
|
274 |
|
|
|
13,989 |
|
|
|
— |
|
|
|
67 |
|
|
|
4,802 |
|
|
|
(5 |
) |
|
|
19,127 |
|
Classified |
|
|
— |
|
|
|
3 |
|
|
|
708 |
|
|
|
145 |
|
|
|
19 |
|
|
|
886 |
|
|
|
3,291 |
|
|
|
5,052 |
|
Total commercial and industrial loans |
|
|
264,762 |
|
|
|
55,412 |
|
|
|
51,634 |
|
|
|
15,925 |
|
|
|
10,960 |
|
|
|
11,704 |
|
|
|
151,434 |
|
|
|
561,831 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equipment financing agreements: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk Rating |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass / Pass Watch |
|
|
239,738 |
|
|
|
79,400 |
|
|
|
101,460 |
|
|
|
47,485 |
|
|
|
10,683 |
|
|
|
1,388 |
|
|
|
— |
|
|
|
480,154 |
|
Special Mention |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Classified |
|
|
716 |
|
|
|
981 |
|
|
|
3,575 |
|
|
|
1,328 |
|
|
|
347 |
|
|
|
198 |
|
|
|
— |
|
|
|
7,145 |
|
Total equipment financing agreements |
|
|
240,454 |
|
|
|
80,381 |
|
|
|
105,035 |
|
|
|
48,813 |
|
|
|
11,030 |
|
|
|
1,586 |
|
|
|
— |
|
|
|
487,299 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans receivable: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk Rating |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass / Pass Watch |
|
|
1,976,453 |
|
|
|
858,611 |
|
|
|
626,894 |
|
|
|
489,366 |
|
|
|
372,804 |
|
|
|
473,544 |
|
|
|
197,942 |
|
|
|
4,995,614 |
|
Special Mention |
|
|
— |
|
|
|
19,143 |
|
|
|
21,582 |
|
|
|
930 |
|
|
|
7,472 |
|
|
|
44,469 |
|
|
|
1,698 |
|
|
|
95,294 |
|
Classified |
|
|
716 |
|
|
|
984 |
|
|
|
9,733 |
|
|
|
18,720 |
|
|
|
4,296 |
|
|
|
22,893 |
|
|
|
3,291 |
|
|
|
60,633 |
|
Total loans receivable |
|
$ |
1,977,169 |
|
|
$ |
878,738 |
|
|
$ |
658,209 |
|
|
$ |
509,016 |
|
|
$ |
384,572 |
|
|
$ |
540,906 |
|
|
$ |
202,931 |
|
|
$ |
5,151,541 |
|
(1)Includes extensions, renewals, or modifications of credit contracts, which consist of a new credit decision
Loans by Vintage Year and Payment Performance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Term Loans |
|
|
|
|
|
|
|
|
|
Amortized Cost Basis by Origination Year (1) |
|
|
|
|
|
|
|
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
|
Prior |
|
|
Revolving
Loans
Amortized
Cost Basis |
|
|
Total |
|
|
|
(in thousands) |
|
December 31, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial property |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payment performance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performing |
|
$ |
1,185,208 |
|
|
$ |
914,413 |
|
|
$ |
606,597 |
|
|
$ |
416,213 |
|
|
$ |
312,324 |
|
|
$ |
233,643 |
|
|
$ |
52,578 |
|
|
$ |
3,720,976 |
|
Nonperforming |
|
|
— |
|
|
|
— |
|
|
|
412 |
|
|
|
— |
|
|
|
1,930 |
|
|
|
858 |
|
|
|
|
|
|
3,200 |
|
Total commercial property |
|
|
1,185,208 |
|
|
|
914,413 |
|
|
|
607,009 |
|
|
|
416,213 |
|
|
|
314,254 |
|
|
|
234,501 |
|
|
|
52,578 |
|
|
|
3,724,176 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payment performance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performing |
|
|
41,662 |
|
|
|
67,543 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
109,205 |
|
Nonperforming |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total construction |
|
|
41,662 |
|
|
|
67,543 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
109,205 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payment performance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performing |
|
|
405,975 |
|
|
|
173,236 |
|
|
|
13,102 |
|
|
|
232 |
|
|
|
731 |
|
|
|
134,766 |
|
|
|
5,922 |
|
|
|
733,964 |
|
Nonperforming |
|
|
12 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
496 |
|
|
|
— |
|
|
|
508 |
|
Total residential |
|
|
405,987 |
|
|
|
173,236 |
|
|
|
13,102 |
|
|
|
232 |
|
|
|
731 |
|
|
|
135,262 |
|
|
|
5,922 |
|
|
|
734,472 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total real estate loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payment performance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performing |
|
|
1,632,845 |
|
|
|
1,155,192 |
|
|
|
619,699 |
|
|
|
416,445 |
|
|
|
313,055 |
|
|
|
368,409 |
|
|
|
58,500 |
|
|
|
4,564,145 |
|
Nonperforming |
|
|
12 |
|
|
|
— |
|
|
|
412 |
|
|
|
— |
|
|
|
1,930 |
|
|
|
1,354 |
|
|
|
— |
|
|
|
3,708 |
|
Total real estate loans |
|
|
1,632,857 |
|
|
|
1,155,192 |
|
|
|
620,111 |
|
|
|
416,445 |
|
|
|
314,985 |
|
|
|
369,763 |
|
|
|
58,500 |
|
|
|
4,567,853 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payment performance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performing |
|
|
368,778 |
|
|
|
109,822 |
|
|
|
39,577 |
|
|
|
25,199 |
|
|
|
7,452 |
|
|
|
12,539 |
|
|
|
240,703 |
|
|
|
804,070 |
|
Nonperforming |
|
|
— |
|
|
|
— |
|
|
|
171 |
|
|
|
15 |
|
|
|
— |
|
|
|
236 |
|
|
|
— |
|
|
|
422 |
|
Total commercial and industrial loans |
|
|
368,778 |
|
|
|
109,822 |
|
|
|
39,748 |
|
|
|
25,214 |
|
|
|
7,452 |
|
|
|
12,775 |
|
|
|
240,703 |
|
|
|
804,492 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equipment financing agreements: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payment performance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performing |
|
|
305,249 |
|
|
|
165,313 |
|
|
|
46,970 |
|
|
|
52,133 |
|
|
|
17,608 |
|
|
|
1,798 |
|
|
|
— |
|
|
|
589,071 |
|
Nonperforming |
|
|
630 |
|
|
|
2,542 |
|
|
|
311 |
|
|
|
1,581 |
|
|
|
565 |
|
|
|
88 |
|
|
|
— |
|
|
|
5,717 |
|
Total equipment financing agreements |
|
|
305,879 |
|
|
|
167,855 |
|
|
|
47,281 |
|
|
|
53,714 |
|
|
|
18,173 |
|
|
|
1,886 |
|
|
|
— |
|
|
|
594,788 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans receivable: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payment performance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performing |
|
|
2,306,872 |
|
|
|
1,430,327 |
|
|
|
706,246 |
|
|
|
493,777 |
|
|
|
338,115 |
|
|
|
382,746 |
|
|
|
299,203 |
|
|
|
5,957,286 |
|
Nonperforming |
|
|
642 |
|
|
|
2,542 |
|
|
|
894 |
|
|
|
1,596 |
|
|
|
2,495 |
|
|
|
1,678 |
|
|
|
— |
|
|
|
9,847 |
|
Total loans receivable |
|
$ |
2,307,514 |
|
|
$ |
1,432,869 |
|
|
$ |
707,140 |
|
|
$ |
495,373 |
|
|
$ |
340,610 |
|
|
$ |
384,424 |
|
|
$ |
299,203 |
|
|
$ |
5,967,133 |
|
(1)Includes extensions, renewals, or modifications of credit contracts, which consist of a new credit decision
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Term Loans |
|
|
|
|
|
|
|
|
|
Amortized Cost Basis by Origination Year (1) |
|
|
|
|
|
|
|
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
Prior |
|
|
Revolving
Loans
Amortized
Cost Basis |
|
|
Total |
|
|
|
(in thousands) |
|
December 31, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial property |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payment performance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performing |
|
$ |
1,203,197 |
|
|
$ |
725,339 |
|
|
$ |
501,293 |
|
|
$ |
423,515 |
|
|
$ |
286,935 |
|
|
$ |
419,464 |
|
|
$ |
43,116 |
|
|
$ |
3,602,859 |
|
Nonperforming |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
20 |
|
|
|
709 |
|
|
|
3,271 |
|
|
|
— |
|
|
|
4,000 |
|
Total commercial property |
|
|
1,203,197 |
|
|
|
725,339 |
|
|
|
501,293 |
|
|
|
423,535 |
|
|
|
287,644 |
|
|
|
422,735 |
|
|
|
43,116 |
|
|
|
3,606,859 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payment performance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performing |
|
|
73,808 |
|
|
|
631 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
20,567 |
|
|
|
— |
|
|
|
95,006 |
|
Nonperforming |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total construction |
|
|
73,808 |
|
|
|
631 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
20,567 |
|
|
|
— |
|
|
|
95,006 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payment performance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performing |
|
|
194,948 |
|
|
|
16,975 |
|
|
|
247 |
|
|
|
20,743 |
|
|
|
73,973 |
|
|
|
84,052 |
|
|
|
8,381 |
|
|
|
399,319 |
|
Nonperforming |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
965 |
|
|
|
262 |
|
|
|
— |
|
|
|
1,227 |
|
Total residential |
|
|
194,948 |
|
|
|
16,975 |
|
|
|
247 |
|
|
|
20,743 |
|
|
|
74,938 |
|
|
|
84,314 |
|
|
|
8,381 |
|
|
|
400,546 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total real estate loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payment performance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performing |
|
|
1,471,953 |
|
|
|
742,945 |
|
|
|
501,540 |
|
|
|
444,258 |
|
|
|
360,908 |
|
|
|
524,083 |
|
|
|
51,497 |
|
|
|
4,097,184 |
|
Nonperforming |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
20 |
|
|
|
1,674 |
|
|
|
3,533 |
|
|
|
— |
|
|
|
5,227 |
|
Total real estate loans |
|
|
1,471,953 |
|
|
|
742,945 |
|
|
|
501,540 |
|
|
|
444,278 |
|
|
|
362,582 |
|
|
|
527,616 |
|
|
|
51,497 |
|
|
|
4,102,411 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payment performance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performing |
|
|
264,762 |
|
|
|
55,409 |
|
|
|
50,926 |
|
|
|
15,925 |
|
|
|
10,956 |
|
|
|
11,431 |
|
|
|
151,434 |
|
|
|
560,843 |
|
Nonperforming |
|
|
— |
|
|
|
3 |
|
|
|
708 |
|
|
|
— |
|
|
|
4 |
|
|
|
273 |
|
|
|
— |
|
|
|
988 |
|
Total commercial and industrial loans |
|
|
264,762 |
|
|
|
55,412 |
|
|
|
51,634 |
|
|
|
15,925 |
|
|
|
10,960 |
|
|
|
11,704 |
|
|
|
151,434 |
|
|
|
561,831 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equipment financing agreements: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payment performance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performing |
|
|
239,738 |
|
|
|
79,400 |
|
|
|
101,460 |
|
|
|
47,484 |
|
|
|
10,684 |
|
|
|
1,388 |
|
|
|
— |
|
|
|
480,154 |
|
Nonperforming |
|
|
716 |
|
|
|
981 |
|
|
|
3,575 |
|
|
|
1,329 |
|
|
|
346 |
|
|
|
198 |
|
|
|
— |
|
|
|
7,145 |
|
Total equipment financing agreements |
|
|
240,454 |
|
|
|
80,381 |
|
|
|
105,035 |
|
|
|
48,813 |
|
|
|
11,030 |
|
|
|
1,586 |
|
|
|
— |
|
|
|
487,299 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans receivable: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payment performance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performing |
|
|
1,976,453 |
|
|
|
877,754 |
|
|
|
653,926 |
|
|
|
507,667 |
|
|
|
382,548 |
|
|
|
536,902 |
|
|
|
202,931 |
|
|
|
5,138,181 |
|
Nonperforming |
|
|
716 |
|
|
|
984 |
|
|
|
4,283 |
|
|
|
1,349 |
|
|
|
2,024 |
|
|
|
4,004 |
|
|
|
— |
|
|
|
13,360 |
|
Total loans receivable |
|
$ |
1,977,169 |
|
|
$ |
878,738 |
|
|
$ |
658,209 |
|
|
$ |
509,016 |
|
|
$ |
384,572 |
|
|
$ |
540,906 |
|
|
$ |
202,931 |
|
|
$ |
5,151,541 |
|
(1)Includes extensions, renewals, or modifications of credit contracts, which consist of a new credit decision
Nonaccrual Loans and Nonperforming Assets
The following tables represent the amortized cost basis of loans on nonaccrual status and loans past due 90 days and still accruing as of December 31, 2022 and 2021.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2022 |
|
|
|
Nonaccrual
Loans With
No Allowance for
Credit Losses |
|
|
Nonaccrual
Loans With
Allowance for
Credit Losses |
|
|
Loans
Past Due
90 Days Still
Accruing |
|
|
Total
Nonperforming
Loans |
|
|
|
(in thousands) |
|
Real estate loans: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial property |
|
|
|
|
|
|
|
|
|
|
|
|
Retail |
|
$ |
1,929 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,929 |
|
Other |
|
|
540 |
|
|
|
731 |
|
|
|
— |
|
|
|
1,271 |
|
Total commercial property loans |
|
|
2,469 |
|
|
|
731 |
|
|
|
— |
|
|
|
3,200 |
|
Residential |
|
|
508 |
|
|
|
— |
|
|
|
— |
|
|
|
508 |
|
Total real estate loans |
|
|
2,977 |
|
|
|
731 |
|
|
|
— |
|
|
|
3,708 |
|
Commercial and industrial loans |
|
|
— |
|
|
|
422 |
|
|
|
— |
|
|
|
422 |
|
Equipment financing agreements |
|
|
215 |
|
|
|
5,501 |
|
|
|
— |
|
|
|
5,716 |
|
Total |
|
$ |
3,192 |
|
|
$ |
6,654 |
|
|
$ |
— |
|
|
$ |
9,846 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2021 |
|
|
|
Nonaccrual
Loans With
No Allowance for
Credit Losses |
|
|
Nonaccrual
Loans With
Allowance for
Credit Losses |
|
|
Loans
Past Due
90 Days Still
Accruing |
|
|
Total
Nonperforming
Loans |
|
|
|
(in thousands) |
|
Real estate loans: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial property |
|
|
|
|
|
|
|
|
|
|
|
|
Retail |
|
$ |
1,918 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,918 |
|
Other |
|
|
1,745 |
|
|
|
337 |
|
|
|
— |
|
|
|
2,082 |
|
Total commercial property loans |
|
|
3,663 |
|
|
|
337 |
|
|
|
— |
|
|
|
4,000 |
|
Residential |
|
|
982 |
|
|
|
245 |
|
|
|
— |
|
|
|
1,227 |
|
Total real estate loans |
|
|
4,645 |
|
|
|
582 |
|
|
|
— |
|
|
|
5,227 |
|
Commercial and industrial loans |
|
|
8 |
|
|
|
980 |
|
|
|
— |
|
|
|
988 |
|
Equipment financing agreements |
|
|
1,172 |
|
|
|
5,973 |
|
|
|
— |
|
|
|
7,145 |
|
Total |
|
$ |
5,825 |
|
|
$ |
7,535 |
|
|
$ |
— |
|
|
$ |
13,360 |
|
The following is an aging analysis of loans, disaggregated by loan class, as of the dates indicated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30-59 Days
Past Due |
|
|
60-89 Days
Past Due |
|
|
90 Days or More
Past Due |
|
|
Total
Past Due |
|
|
Current |
|
|
Total |
|
|
|
(in thousands) |
|
December 31, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial property |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,023,608 |
|
|
$ |
1,023,608 |
|
Hospitality |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
646,893 |
|
|
|
646,893 |
|
Other |
|
|
— |
|
|
|
494 |
|
|
|
— |
|
|
|
494 |
|
|
|
2,053,181 |
|
|
|
2,053,675 |
|
Total commercial property loans |
|
|
— |
|
|
|
494 |
|
|
|
— |
|
|
|
494 |
|
|
|
3,723,682 |
|
|
|
3,724,176 |
|
Construction |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
109,205 |
|
|
|
109,205 |
|
Residential |
|
|
313 |
|
|
|
804 |
|
|
|
7 |
|
|
|
1,124 |
|
|
|
733,348 |
|
|
|
734,472 |
|
Total real estate loans |
|
|
313 |
|
|
|
1,298 |
|
|
|
7 |
|
|
|
1,618 |
|
|
|
4,566,235 |
|
|
|
4,567,853 |
|
Commercial and industrial loans |
|
|
77 |
|
|
|
79 |
|
|
|
— |
|
|
|
156 |
|
|
|
804,336 |
|
|
|
804,492 |
|
Equipment financing agreements |
|
|
5,825 |
|
|
|
1,271 |
|
|
|
2,949 |
|
|
|
10,045 |
|
|
|
584,743 |
|
|
|
594,788 |
|
Total loans receivable |
|
$ |
6,215 |
|
|
$ |
2,648 |
|
|
$ |
2,956 |
|
|
$ |
11,819 |
|
|
$ |
5,955,314 |
|
|
$ |
5,967,133 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial property |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
970,134 |
|
|
$ |
970,134 |
|
Hospitality |
|
|
556 |
|
|
|
— |
|
|
|
— |
|
|
|
556 |
|
|
|
717,136 |
|
|
|
717,692 |
|
Other |
|
|
92 |
|
|
|
691 |
|
|
|
499 |
|
|
|
1,282 |
|
|
|
1,917,751 |
|
|
|
1,919,033 |
|
Total commercial property loans |
|
|
648 |
|
|
|
691 |
|
|
|
499 |
|
|
|
1,838 |
|
|
|
3,605,021 |
|
|
|
3,606,859 |
|
Construction |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
95,006 |
|
|
|
95,006 |
|
Residential |
|
|
570 |
|
|
|
750 |
|
|
|
556 |
|
|
|
1,876 |
|
|
|
398,670 |
|
|
|
400,546 |
|
Total real estate loans |
|
|
1,218 |
|
|
|
1,441 |
|
|
|
1,055 |
|
|
|
3,714 |
|
|
|
4,098,697 |
|
|
|
4,102,411 |
|
Commercial and industrial loans |
|
|
56 |
|
|
|
9 |
|
|
|
— |
|
|
|
65 |
|
|
|
561,766 |
|
|
|
561,831 |
|
Equipment financing agreements |
|
|
3,764 |
|
|
|
1,992 |
|
|
|
1,181 |
|
|
|
6,937 |
|
|
|
480,362 |
|
|
|
487,299 |
|
Total loans receivable |
|
$ |
5,038 |
|
|
$ |
3,442 |
|
|
$ |
2,236 |
|
|
$ |
10,716 |
|
|
$ |
5,140,825 |
|
|
$ |
5,151,541 |
|
There were no loans that were 90 days or more past due and accruing interest as of December 31, 2022 and 2021. $6.9 million and $11.1 million of loans current or past due less than 90 days were classified as nonaccrual at December 31, 2022 and 2021, respectively.
At December 31, 2022, for loans previously modified under the CARES Act, $1.2 million were 30-59 days past due, $0.7 million were 60-89 days past due, and $0.7 million were 90 days or more past due. At December 31, 2021, for loans currently modified loans under the CARES Act, $47,000 were 30-59 days past due and $5,000 were 60-89 days past due, and for loans previously modified under the CARES Act, $1.2 million were 30-59 days past due, $1.1 million were 60-89 days past due, and $1.1 million were 90 days or more past due.
The following table details nonperforming assets as of the dates indicated:
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As of December 31, |
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2022 |
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2021 |
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(in thousands) |
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Nonaccrual loans |
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$ |
9,846 |
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$ |
13,360 |
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Loans receivable 90 days or more past due and still accruing |
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— |
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|
|
— |
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Total nonperforming loans receivable |
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9,846 |
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|
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13,360 |
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Other real estate owned ("OREO") |
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|
117 |
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|
675 |
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Total nonperforming assets |
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$ |
9,963 |
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$ |
14,035 |
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OREO consisted of one property with a carrying value of $0.1 million as of December 31, 2022, and one property with a carrying value of $0.7 million as of December 31, 2021. OREO is included in prepaid expenses and other assets in the accompanying Consolidated Balance Sheets as of December 31, 2022 and 2021.
Troubled Debt Restructurings
The following table details the recorded investment in TDRs, disaggregated by concession type and by loan type, as of December 31, 2022 and 2021:
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Nonaccrual TDRs |
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Accrual TDRs |
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Deferral of Principal |
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Deferral of Principal and Interest |
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Reduction of Principal and Interest |
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Extension of Maturity |
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Total |
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Deferral of Principal |
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|
Deferral of Principal and Interest |
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|
Reduction of Principal and Interest |
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Extension of Maturity |
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Total |
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(in thousands) |
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December 31, 2022 |
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|
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|
|
|
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Real estate loans |
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$ |
255 |
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|
$ |
— |
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$ |
84 |
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$ |
— |
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|
$ |
339 |
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|
$ |
— |
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$ |
1,185 |
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$ |
— |
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$ |
— |
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$ |
1,185 |
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Commercial and industrial loans |
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— |
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|
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106 |
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|
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— |
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|
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— |
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|
|
106 |
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— |
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— |
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— |
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— |
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|
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— |
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Total |
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$ |
255 |
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|
$ |
106 |
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$ |
84 |
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$ |
— |
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|
$ |
445 |
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$ |
— |
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$ |
1,185 |
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$ |
— |
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$ |
— |
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$ |
1,185 |
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December 31, 2021 |
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Real estate loans |
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$ |
346 |
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$ |
2,046 |
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|
$ |
372 |
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|
$ |
— |
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|
$ |
2,764 |
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|
$ |
— |
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|
$ |
— |
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$ |
— |
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|
$ |
— |
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|
$ |
— |
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Commercial and industrial loans |
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|
— |
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|
|
124 |
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|
|
— |
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— |
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|
124 |
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— |
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— |
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— |
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— |
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— |
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Total |
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$ |
346 |
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$ |
2,170 |
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$ |
372 |
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$ |
— |
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$ |
2,888 |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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Accruing TDRs are collectively evaluated along with performing and accruing loans and nonaccrual TDRs are individually evaluated for specific expected credit losses using one of these three criteria: (1) the present value of expected future cash flows discounted at the loan’s effective interest rate; (2) the loan’s observable market price; or (3) the fair value of the collateral if the loan is collateral dependent. At December 31, 2022 and 2021, nonaccrual TDRs were subjected to specific expected credit losses analysis. We determined an expected credit loss allowance of $15,000 and $4,000 as of December 31, 2022 and 2021, respectively, related to these loans and such allowances were included in the allowance for credit losses.
The following table presents the number of loans by class modified as troubled debt restructurings that occurred during the years ending December 31, 2022, 2021 and 2020 with their pre- and post-modification recorded amounts.
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December 31, 2022 |
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December 31, 2021 |
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December 31, 2020 |
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Number
of Loans |
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Pre-
Modification
Outstanding
Recorded
Investment |
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Post-
Modification
Outstanding
Recorded
Investment |
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Number
of Loans |
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Pre-
Modification
Outstanding
Recorded
Investment |
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Post-
Modification
Outstanding
Recorded
Investment |
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Number
of Loans |
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Pre-
Modification
Outstanding
Recorded
Investment |
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Post-
Modification
Outstanding
Recorded
Investment |
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(in thousands except for number of loans) |
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Real estate loans |
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1 |
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$ |
92 |
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$ |
84 |
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— |
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$ |
— |
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$ |
— |
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5 |
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$ |
4,479 |
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$ |
3,676 |
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Commercial and industrial loans |
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|
— |
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— |
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— |
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— |
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— |
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— |
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— |
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— |
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— |
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Total |
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1 |
|
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$ |
92 |
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$ |
84 |
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— |
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$ |
— |
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$ |
— |
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5 |
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$ |
4,479 |
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$ |
3,676 |
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A loan is considered to be in payment default once it is 30 days contractually past due under the modified terms. No loans defaulted during the twelve months ended December 31, 2022 and 2021, following modification.
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