Loans Receivable (Tables)
|
12 Months Ended |
Dec. 31, 2022 |
|---|
| Receivables [Abstract] |
|
| Loans Receivable |
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.
|
| Information on SBA 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 |
|
|
| Allowance for Credit Losses |
T
|
| Allowance for Credit Losses by Portfolio Segment |
he 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 |
% |
|
| Summary of Amortized Cost Basis of Collateral Dependent Loans By Class of Loans |
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.
|
| Credit Quality of Loan Portfolio |
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 |
|
| |