Loans Receivable and Allowance for Credit Losses | Loans Receivable and Allowance for Credit Losses Loans receivable at September 30, 2023 and December 31, 2022 are summarized as follows (in thousands): September 30, 2023 December 31, 2022 Mortgage loans: Commercial $ 4,411,099 4,316,185 Multi-family 1,790,039 1,513,818 Construction 667,462 715,494 Residential 1,167,570 1,177,698 Total mortgage loans 8,036,170 7,723,195 Commercial loans 2,340,080 2,233,670 Consumer loans 302,769 304,780 Total gross loans 10,679,019 10,261,645 Premiums on purchased loans 1,413 1,380 Net deferred fees (12,820) (14,142) Total loans $ 10,667,612 10,248,883 The following tables summarize the aging of loans receivable by portfolio segment and class of loans (in thousands): September 30, 2023 30-59 Days 60-89 Days Non-accrual Recorded Total Past Current Total Loans Non-accrual loans with no related allowance Mortgage loans: Commercial $ — 587 11,667 — 12,254 4,398,845 4,411,099 8,676 Multi-family 5,473 — 2,258 — 7,731 1,782,308 1,790,039 2,258 Construction — — 1,868 — 1,868 665,594 667,462 1,868 Residential 1,588 936 1,329 — 3,853 1,163,717 1,167,570 1,329 Total mortgage loans 7,061 1,523 17,122 — 25,706 8,010,464 8,036,170 14,131 Commercial loans 1,959 228 21,912 — 24,099 2,315,981 2,340,080 14,504 Consumer loans 1,207 168 495 — 1,870 300,899 302,769 495 Total gross loans $ 10,227 1,919 39,529 — 51,675 10,627,344 10,679,019 29,130 December 31, 2022 30-59 Days 60-89 Days Non-accrual Recorded Total Past Current Total Loans Receivable Non-accrual loans with no related allowance Mortgage loans: Commercial $ 2,300 412 28,212 — 30,924 4,285,261 4,316,185 22,961 Multi-family 790 — 1,565 — 2,355 1,511,463 1,513,818 1,565 Construction 905 1,097 1,878 — 3,880 711,614 715,494 1,878 Residential 1,411 1,114 1,928 — 4,453 1,173,245 1,177,698 1,928 Total mortgage loans 5,406 2,623 33,583 — 41,612 7,681,583 7,723,195 28,332 Commercial loans 964 1,014 24,188 — 26,166 2,207,504 2,233,670 21,156 Consumer loans 885 147 738 — 1,770 303,010 304,780 739 Total gross loans $ 7,255 3,784 58,509 — 69,548 10,192,097 10,261,645 50,227 Included in loans receivable are loans for which the accrual of interest income has been discontinued due to deterioration in the financial condition of the borrowers. The principal amounts of these non-accrual loans were $39.5 million and $58.5 million at September 30, 2023 and December 31, 2022, respectively. Included in non-accrual loans were $6.4 million and $42.9 million of loans which were less than 90 days past due at September 30, 2023 and December 31, 2022, respectively. There were no loans 90 days or greater past due and still accruing interest at September 30, 2023 and December 31, 2022. The activity in the allowance for credit losses by portfolio segment for the three and nine months ended September 30, 2023 and 2022 was as follows (in thousands): Three months ended September 30, Mortgage loans Commercial loans Consumer loans Total 2023 Balance at beginning of period $ 69,940 29,707 2,426 102,073 Provision charge (benefit) to operations 4,619 6,436 (55) 11,000 Recoveries of loans previously charged-off 101 405 88 594 Loans charged-off (3) (6,019) (82) (6,104) Balance at end of period $ 74,657 30,529 2,377 107,563 2022 Balance at beginning of period $ 55,064 21,387 2,566 79,017 Provision charge to operations 4,991 3,381 28 8,400 Recoveries of loans previously charged-off 167 1,421 129 1,717 Loans charged-off — (410) (91) (501) Balance at end of period $ 60,222 25,779 2,632 88,633 Nine months ended September 30, Mortgage loans Commercial loans Consumer loans Total 2023 Balance at beginning of period $ 58,218 27,413 2,392 88,023 Cumulative effect of adopting Accounting Standards Update ("ASU") No. 2022-02 (510) (43) (41) (594) Provision charge (benefit) to operations 17,573 9,898 (71) 27,400 Recoveries of loans previously charged-off 107 706 347 1,160 Loans charged-off (731) (7,445) (250) (8,426) Balance at end of period $ 74,657 30,529 2,377 107,563 2022 Balance at beginning of period $ 52,104 26,343 2,293 80,740 Provision charge (benefit) charge to operations 8,589 (3,734) 145 5,000 Recoveries of loans previously charged-off 539 3,725 404 4,668 Loans charged-off (1,010) (555) (210) (1,775) Balance at end of period $ 60,222 25,779 2,632 88,633 For the three and nine months ended September 30, 2023, the Company recorded an $11.0 million and a $27.4 million provision for credit losses on loans, respectively. The increase in provision was attributable to a worsened economic forecast and related deterioration in the projected commercial property price indices used in our CECL model. For the three months ended September 30, 2023, net charge-offs totaled $5.5 million, which was primarily attributable to one commercial loan. For the nine months ended September 30, 2023, net charge-offs totaled $7.3 million, which was primarily attributable to two commercial loans. The following table summarizes the Company's gross charge-offs recorded during the three months ended September 30, 2023 by year of origination (in thousands): 2023 2022 2021 2020 2019 Prior to 2019 Total Loans Mortgage loans: Residential $ — — — — — 3 3 Total mortgage loans — — — — — 3 3 Commercial loans $ — — — 5,000 — 1,019 6,019 Consumer loans (1) 7 — — — — — 7 Total gross loans $ 7 — — 5,000 — 1,022 6,029 (1) During the three months ended September 30, 2023, charge-offs on consumer overdraft accounts totaled $75,000, which are not included in the table above. The following table summarizes the Company's gross charge-offs recorded during the nine months ended September 30, 2023 by year of origination (in thousands): 2023 2022 2021 2020 2019 Prior to 2019 Total Loans Mortgage loans: Commercial $ — — — — — 707 707 Residential — — — — — 24 24 Total mortgage loans — — — — — 731 731 Commercial loans $ — — — 5,000 — 2,445 7,445 Consumer loans (1) 16 — — — — 13 29 Total gross loans $ 16 — — 5,000 — 3,189 8,205 (1) During the nine months ended September 30, 2023, charge-offs on consumer overdraft accounts totaled $221,000, which are not included in the table above. The Company defines a loan individually evaluated for impairment as a non-homogeneous loan greater than $1.0 million, for which, based on current information, it is not expected to collect all amounts due under the contractual terms of the loan agreement. At September 30, 2023, there were 18 loans totaling $30.4 million, compared to 10 loans totaling $42.8 million at December 31, 2022, that were individually evaluated for impairment. A financial asset is considered collateral-dependent when the debtor is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. For all classes of loans deemed collateral-dependent, the Company estimates expected credit losses based on the collateral’s fair value less any selling costs. A specific allocation of the allowance for credit losses is established for each collateral-dependent loan with a carrying balance greater than the collateral’s fair value, less estimated selling costs. In most cases, the Company records a partial charge-off to reduce the loan’s carrying value to the collateral’s fair value less estimated selling costs. The Company uses third-party appraisals to determine the fair value of the underlying collateral in its analysis of collateral-dependent loans. A third-party appraisal is generally ordered as soon as a loan is designated as a collateral-dependent loan and updated annually, or more frequently if required. At each fiscal quarter end, if a loan is designated as collateral-dependent and the third-party appraisal has not yet been received, an evaluation of all available collateral is made using the best information available at the time, including rent rolls, borrower financial statements and tax returns, prior appraisals, management’s knowledge of the market and collateral, and internally prepared collateral valuations based upon market assumptions regarding vacancy and capitalization rates, each as and where applicable. Once the appraisal is received and reviewed, the specific reserves are adjusted to reflect the appraised value and evaluated for charge offs. The Company believes there have been no significant time lapses resulting from this process. At September 30, 2023, the Company had collateral-dependent loans with a fair value of $5.0 million secured by business assets and $2.0 million secured by commercial real estate. At December 31, 2022, the Company had collateral-dependent loans with a fair value of $21.3 million secured by commercial real estate, $1.9 million secured by business assets and $800,000 secured by residential real estate. Loan modifications to borrowers experiencing financial difficulty may include interest rate reductions, principal or interest forgiveness, forbearance, term extensions, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral. In addition, management attempts to obtain additional collateral or guarantor support when modifying such loans. If the borrower has demonstrated performance under the previous terms and our underwriting process shows the borrower has the capacity to continue to perform under the restructured terms, the loan will continue to accrue interest. Non-accruing restructured loans may be returned to accrual status when there has been a sustained period of repayment performance (generally six consecutive months of payments) and both principal and interest are deemed collectible. The following illustrates the most common loan modifications by loan classes offered by the Company that are required to be disclosed pursuant to the requirements of ASU 2022-02: Loan Classes Modification types Commercial Term extension, interest rate reductions, payment delay, or combination thereof. These modifications extend the term of the loan, lower the payment amount, or otherwise delay payments during a defined period for the purpose of providing borrowers additional time to return to compliance with the original loan term. Residential Mortgage/ Home Equity Forbearance period greater than six months. These modifications require reduced or no payments during the forbearance period for the purpose of providing borrowers additional time to return to compliance with the original loan term. As well as, term extension and rate adjustment. These modifications extend the term of the loan and provides for an adjustment to the interest rate, which reduces the monthly payment requirement. Automobile/ Direct Installment Term extension greater than three months. These modifications extend the term of the loan, which reduces the monthly payment requirement. Effective January 1, 2023, the Company adopted ASU 2022-02, “Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures” (“ASU 2022-02”), which eliminated the accounting guidance for troubled debt restructurings (“TDRs”) while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty. This guidance was applied on a modified retrospective basis. Upon adoption of this guidance, the Company no longer establishes a specific reserve for loan modifications to borrowers experiencing financial difficulty. Instead, these loan modifications are included in their respective pool and a historical loss rate is applied to the current loan balance to arrive at the quantitative and qualitative baseline portion of the allowance for credit losses. As a result, The Company recorded a $594,000 reduction to the allowance for credit losses, which resulted in a $433,000 cumulative effect adjustment increase, net of tax to retained earnings. The following table presents the amortized cost basis of loan modifications made to borrowers experiencing financial difficulty during the three and nine months ended September 30, 2023 (in thousands): For the three months ended September 30, 2023 Term Extension Interest Rate Reduction Interest Rate Reduction and Term Extension % of Total Class of Loans and Leases Mortgage loans: Multi-family $ — — 1,508 0.08 % Total mortgage loans — — 1,508 0.02 % Total gross loans $ — — 1,508 0.01 % For the nine months ended September 30, 2023 Term Extension Interest Rate Reduction Interest Rate Reduction and Term Extension % of Total Class of Loans and Leases Mortgage loans: Multi-family $ — — 1,508 0.08 % Total mortgage loans — — 1,508 0.02 % Commercial loans 3,771 — 1,250 0.21 % Total gross loans $ 3,771 — 2,758 0.06 % The following table presents the financial effect of loan modifications made to borrowers experiencing financial difficulty during the three months ended September 30, 2023 (in thousands): Weighted-Average Months of Term Extension Weighted-Average Rate Increase Mortgage loans: Multi-family 2 2.23 % Total mortgage loans 2 2.23 % Total gross loans 2 2.23 % The following table presents the financial effect of loan modifications made to borrowers experiencing financial difficulty during the nine months ended September 30, 2023 (in thousands): Weighted-Average Months of Term Extension Weighted-Average Rate Increase Mortgage loans: Multi-family 2 2.23 % Total mortgage loans 2 2.23 % Commercial loans 10 0.20 % Total gross loans 9 0.61 % There were no loan modifications made to borrowers experiencing financial difficulty during the three and nine months ended September 30, 2023, that subsequently defaulted. The following table presents the aging analysis of loan modifications made to borrowers experiencing financial difficulty during the three months ended September 30, 2023 (in thousands): Current 30-59 Days Past Due 60-89 Days Past Due 90 days or more Past Due Non- Accrual Total Mortgage loans: Multi-family $ 1,508 — — — — 1,508 Total mortgage loans 1,508 — — — — 1,508 Total gross loans $ 1,508 — — — — 1,508 The following table presents the aging analysis of loan modifications made to borrowers experiencing financial difficulty during the nine months ended September 30, 2023 (in thousands): Current 30-59 Days Past Due 60-89 Days Past Due 90 days or more Past Due Non- Accrual Total Mortgage loans: Multi-family $ 1,508 — — — — 1,508 Total mortgage loans 1,508 — — — — 1,508 Commercial loans 5,021 — — — — 5,021 Total gross loans $ 6,529 — — — — 6,529 Prior to our adoption of ASU 2022-02, we accounted for a modification to the contractual terms of a loan that resulted in granting a concession to a borrower experiencing financial difficulties as a TDR. However, our TDR accounting described herein was suspended for most of our loss mitigation activities through our election to account for certain eligible loss mitigation activities occurring between March 2020 and January 1, 2022 under the COVID-19 relief granted pursuant to the CARES Act and the Consolidated Appropriations Act of 2021. Effective January 1, 2023, we adopted ASU 2022-02, which eliminated TDR accounting prospectively for all restructurings occurring on or after January 1, 2023. The following tables present the number of loans modified as TDRs during the three and nine months ended September 30, 2022, along with their balances immediately prior to the modification date and post-modification as of September 30, 2022 (in thousands): For the three months ended September 30, 2022 Troubled Debt Restructurings Number of Pre-Modification Post-Modification Consumer loans 1 108 88 Total restructured loans 1 $ 108 88 For the nine months ended September 30, 2022 Troubled Debt Restructurings Number of Pre-Modification Post-Modification Mortgage loans: Residential 2 $ 265 $ 204 Multi-family 1 1,618 1,583 Total mortgage loans 3 1,883 1,787 Commercial loans 2 378 273 Consumer loans 1 108 88 Total restructured loans 6 $ 2,369 $ 2,148 Durin g the nine months ended September 30, 2022, $921,000 of charge-offs were recorded on collateral-dependent impaired loans. There was one loan totaling $209,000 which had a payment default (90 days or more past due) for a loan modified as a TDR within the 12 month period ending September 30, 2023. For TDRs that subsequently defaulted, the Company determined the amount of the allowance for the respective loans in accordance with the accounting policy for the allowance for credit losses on loans individually evaluated for impairment. As allowed by CECL, loans acquired by the Company that experience more-than-insignificant deterioration in credit quality after origination, are classified as Purchased Credit Deteriorated ("PCD") loans. At September 30, 2023, the balance of PCD loans totaled $166.9 million with a related allowance for credit losses of $1.5 million. The balance of PCD loans at December 31, 2022 was $193.0 million with a related allowance for credit losses of $1.7 million. Management utilizes an internal nine-point risk rating system to summarize its loan portfolio into categories with similar risk characteristics. Loans deemed to be “acceptable quality” are rated 1 through 4, with a rating of 1 established for loans with minimal risk. Loans that are deemed to be of “questionable quality” are rated 5 (watch) or 6 (special mention). Loans with adverse classifications (substandard, doubtful or loss) are rated 7, 8 or 9, respectively. Commercial mortgage, commercial, multi-family and construction loans are rated individually, and each lending officer is responsible for risk rating loans in their portfolio. These risk ratings are then reviewed by the department manager and/or the Chief Lending Officer and by the Credit Department. The risk ratings are also reviewed periodically through loan review examinations which are currently performed by an independent third-party. Reports by the independent third-party are presented to the Audit Committee of the Board of Directors. The Company participated in the Paycheck Protection Program (“PPP”) through the United States Department of the Treasury and Small Business Administration. PPP loans were fully guaranteed by the SBA and were eligible for forgiveness by the SBA to the extent that the proceeds were used to cover eligible payroll costs, interest costs, rent, and utility costs over a period of up to 24 weeks after the loan was made as long as certain conditions were met regarding employee retention and compensation levels. PPP loans deemed eligible for forgiveness by the SBA are to be repaid by the SBA to the Company. Eligibility ended for this program in May of 2021. PPP loans are included in our commercial loan portfolio. Under the PPP, the Company secured 2,067 PPP loans for its customers totaling $682.0 million. As of September 30, 2023, 2,054 PPP loans totaling $679.4 million were forgiven and repaid by the SBA. The balance of PPP loans at September 30, 2023 was $2.6 million. The following table summarizes the Company's gross loans held for investment by year of origination and internally assigned credit grades as of September 30, 2023 and December 31, 2022 (in thousands): Gross Loans Held for Investment by Year of Origination at September 30, 2023 2023 2022 2021 2020 2019 Prior to 2019 Revolving Loans Revolving loans to term loans Total Loans Commercial Mortgage Special mention $ — — — 2,693 7,829 30,424 4,985 — 45,931 Substandard — — — 804 — 7,663 1,086 — 9,553 Doubtful — — — — — — — — — Loss — — — — — — — — — Total criticized and classified — — — 3,497 7,829 38,087 6,071 — 55,484 Pass/Watch 375,191 902,228 673,880 508,090 504,498 1,273,374 86,243 32,111 4,355,615 Total commercial mortgage $ 375,191 902,228 673,880 511,587 512,327 1,311,461 92,314 32,111 4,411,099 Multi-family Special mention $ — — — — — 9,555 — — 9,555 Substandard — — — — — 3,153 — — 3,153 Doubtful — — — — — — — — — Loss — — — — — — — — — Total criticized and classified — — — — — 12,708 — — 12,708 Pass/Watch 244,713 170,119 219,988 293,764 231,678 609,460 5,992 1,617 1,777,331 Total multi-family $ 244,713 170,119 219,988 293,764 231,678 622,168 5,992 1,617 1,790,039 Construction Special mention $ — — — — 5,084 — — — 5,084 Substandard — — — — 1,097 771 — — 1,868 Doubtful — — — — — — — — — Gross Loans Held for Investment by Year of Origination at September 30, 2023 2023 2022 2021 2020 2019 Prior to 2019 Revolving Loans Revolving loans to term loans Total Loans Loss — — — — — — — — — Total criticized and classified — — — — 6,181 771 — — 6,952 Pass/Watch 16,828 303,723 250,777 70,086 3,652 13,434 2,010 660,510 Total construction $ 16,828 303,723 250,777 70,086 9,833 14,205 — 2,010 667,462 Residential (1) Special mention $ — — — — — 936 — — 936 Substandard — — — — — 1,768 — — 1,768 Doubtful — — — — — — — — — Loss — — — — — — — — — Total criticized and classified — — — — — 2,704 — — 2,704 Pass/Watch 74,488 143,683 203,069 200,617 90,630 452,379 — — 1,164,866 Total residential $ 74,488 143,683 203,069 200,617 90,630 455,083 — — 1,167,570 Total Mortgage Special mention $ — — — 2,693 12,913 40,915 4,985 — 61,506 Substandard — — — 804 1,097 13,355 1,086 — 16,342 Doubtful — — — — — — — — — Loss — — — — — — — — — Total criticized and classified — — — 3,497 14,010 54,270 6,071 — 77,848 Pass/Watch 711,220 1,519,753 1,347,714 1,072,557 830,458 2,348,647 92,235 35,738 7,958,322 Total Mortgage $ 711,220 1,519,753 1,347,714 1,076,054 844,468 2,402,917 98,306 35,738 8,036,170 Commercial Special mention $ — — — 2,973 50 17,034 7,640 — 27,697 Substandard — — 28,166 9,504 1,783 9,797 23,178 524 72,952 Doubtful — — — 1,903 — — — — 1,903 Loss — — — — — — — — — Total criticized and classified — — 28,166 14,380 1,833 26,831 30,818 524 102,552 Pass/Watch 183,378 370,615 294,012 142,654 149,952 525,453 495,841 75,623 2,237,528 Total commercial $ 183,378 370,615 322,178 157,034 151,785 552,284 526,659 76,147 2,340,080 Consumer (1) Special mention $ — — 2 — — 102 63 — 167 Substandard — — — — — 4 400 90 494 Doubtful — — — — — — — — — Loss — — — — — — — — — Total criticized and classified — — 2 — — 106 463 90 661 Pass/Watch 23,096 27,445 19,110 3,464 14,940 89,132 111,567 13,354 302,108 Total consumer $ 23,096 27,445 19,112 3,464 14,940 89,238 112,030 13,444 302,769 Total Loans Special mention $ — — 2 5,666 12,963 58,051 12,688 — 89,370 Substandard — — 28,166 10,308 2,880 23,156 24,664 614 89,788 Doubtful — — — 1,903 — — — — 1,903 Gross Loans Held for Investment by Year of Origination at September 30, 2023 2023 2022 2021 2020 2019 Prior to 2019 Revolving Loans Revolving loans to term loans Total Loans Loss — — — — — — — — — Total criticized and classified — — 28,168 17,877 15,843 81,207 37,352 614 181,061 Pass/Watch 917,694 1,917,813 1,660,836 1,218,675 995,350 2,963,232 699,643 124,715 10,497,958 Total gross loans $ 917,694 1,917,813 1,689,004 1,236,552 1,011,193 3,044,439 736,995 125,329 10,679,019 (1) For residential and consumer loans, the Company assigns internal credit grades based on the delinquency status of each loan. Gross Loans Held for Investment by Year of Origination at December 31, 2022 2022 2021 2020 2019 2018 Prior to 2018 Revolving Loans Revolving loans to term loans Total Loans Commercial Mortgage Special mention $ — — 3,071 26,809 52,509 14,740 — — 97,129 Substandard — — — — 18,020 11,774 434 — 30,228 Doubtful — — — — — — — — — Loss — — — — — — — — — Total criticized and classified — — 3,071 26,809 70,529 26,514 434 — 127,357 Pass/Watch 951,367 630,584 567,448 546,474 218,620 1,164,854 94,716 14,765 4,188,828 Total commercial mortgage $ 951,367 630,584 570,519 573,283 289,149 1,191,368 95,150 14,765 4,316,185 Multi-family Special mention $ — — — — — 9,730 — — 9,730 Substandard — — — — — 2,356 — — 2,356 Doubtful — — — — — — — — — Loss — — — — — — — — — Total criticized and classified — — — — — 12,086 — — 12,086 Pass/Watch 142,550 150,293 282,228 234,953 187,499 502,177 887 1,145 1,501,732 Total multi-family $ 142,550 150,293 282,228 234,953 187,499 514,263 887 1,145 1,513,818 Construction Special mention $ — — — — 19,728 905 — — 20,633 Substandard — — — 2,197 777 — — — 2,974 Doubtful — — — — — — — — — Loss — — — — — — — — — Total criticized and classified — — — 2,197 20,505 905 — — 23,607 Pass/Watch 168,674 362,542 103,067 38,639 16,917 62 — 1,986 691,887 Total construction $ 168,674 362,542 103,067 40,836 37,422 967 — 1,986 715,494 Residential (1) Special mention $ — — — — — 1,114 — — 1,114 Gross Loans Held for Investment by Year of Origination at December 31, 2022 2022 2021 2020 2019 2018 Prior to 2018 Revolving Loans Revolving loans to term loans Total Loans Substandard — — — — 264 4,417 — — 4,681 Doubtful — — — — — — — — — Loss — — — — — — — — — Total criticized and classified — — — — 264 5,531 — — 5,795 Pass/Watch 151,077 212,697 211,445 95,872 58,226 442,586 — — 1,171,903 Total residential $ 151,077 212,697 211,445 95,872 58,490 448,117 — — 1,177,698 Total Mortgage Special mention $ — — 3,071 26,809 72,237 26,489 — — 128,606 Substandard — — — 2,197 19,061 18,547 434 — 40,239 Doubtful — — — — — — — — — Loss — — — — — — — — — Total criticized and classified — — 3,071 29,006 91,298 45,036 434 — 168,845 Pass/Watch 1,413,668 1,356,116 1,164,188 915,938 481,262 2,109,679 95,603 17,896 7,554,350 Total Mortgage $ 1,413,668 1,356,116 1,167,259 944,944 572,560 2,154,715 96,037 17,896 7,723,195 Commercial Special mention $ 75 1,148 444 201 10,156 4,379 14,530 140 31,073 Substandard — 7,605 10,230 4,391 3,561 13,734 7,604 364 47,489 Doubtful — — — — — — — — — Loss — — — — — — — — — Total criticized and classified 75 8,753 10,674 4,592 13,717 18,113 22,134 504 78,562 Pass/Watch 377,662 320,334 162,175 161,150 87,396 522,798 492,717 30,876 2,155,108 Total commercial $ 377,737 329,087 172,849 165,742 101,113 540,911 514,851 31,380 2,233,670 Consumer (1) Special mention $ — — — — — 146 — — 146 Substandard — — 8 — 109 332 209 — 658 Doubtful — — — — — — — — — Loss — — — — — — — — — Total criticized and classified — — 8 — 109 478 209 — 804 Pass/Watch 30,132 20,671 2,909 16,682 16,156 88,173 115,777 13,476 303,976 Total consumer $ 30,132 20,671 2,917 16,682 16,265 88,651 115,986 13,476 304,780 Total Loans Special mention $ 75 1,148 3,515 27,010 82,393 31,014 14,530 140 159,825 Substandard — 7,605 10,238 6,588 22,731 32,613 8,247 364 88,386 Doubtful — — — — — — — — — Loss — — — — — — — — — Total criticized and classified 75 8,753 13,753 33,598 105,124 63,627 22,777 504 248,211 Pass/Watch 1,821,462 1,697,121 1,329,272 1,093,770 584,814 2,720,650 704,097 62,248 10,013,434 Gross Loans Held for Investment by Year of Origination at December 31, 2022 2022 2021 2020 2019 2018 Prior to 2018 Revolving Loans Revolving loans to term loans Total Loans Total gross loans $ 1,821,537 1,705,874 1,343,025 1,127,368 689,938 2,784,277 726,874 62,752 10,261,645 (1) For residential and consumer loans, the Company assigns internal credit grades based on the delinquency status of each loan. |