Allowance for Credit Losses (Tables)

9 Months Ended

Sep. 30, 2023

Allowance for Credit Loss [Abstract]

Summary of Allocation of the Allowance for Loan Losses

The following tables provide the allocation of the ACL for loans held for investment as well as the activity in the ACL attributed to various segments in the loan portfolio as of, and for the periods indicated:

	Three Months Ended September 30, 2023
(Dollars in thousands)	Beginning ACL Balance		Charge-offs		Recoveries		Provision for Credit Losses		Ending ACL Balance
Investor loans secured by real estate
CRE non-owner occupied	$	31,545	$	—	$	51	$	(13)	$	31,583
Multifamily	55,648		—		—		(427)		55,221
Construction and land	7,707		—		—		799		8,506
SBA secured by real estate	2,331		(108)		—		(24)		2,199
Business loans secured by real estate
CRE owner-occupied	28,515		—		12		559		29,086
Franchise real estate secured	6,855		—		—		711		7,566
SBA secured by real estate	4,511		—		128		(77)		4,562
Commercial loans
Commercial and industrial	39,586		(7,386)		565		(268)		32,497
Franchise non-real estate secured	14,642		—		50		1,087		15,779
SBA non-real estate secured	399		(67)		3		137		472
Retail loans
Single family residential	455		—		—		36		491
Consumer loans	139		—		—		(3)		136
Totals	$	192,333	$	(7,561)	$	809	$	2,517	$	188,098

	Nine Months Ended September 30, 2023
(Dollars in thousands)	Beginning ACL Balance		Charge-offs		Recoveries		Provision for Credit Losses		Ending ACL Balance
Investor loans secured by real estate
CRE non-owner occupied	$	33,692	$	(2,657)	$	66	$	482	$	31,583
Multifamily	56,334		(290)		1		(824)		55,221
Construction and land	7,114		—		—		1,392		8,506
SBA secured by real estate	2,592		(108)		—		(285)		2,199
Business loans secured by real estate
CRE owner-occupied	32,340		(2,370)		36		(920)		29,086
Franchise real estate secured	7,019		—		—		547		7,566
SBA secured by real estate	4,348		—		208		6		4,562
Commercial loans
Commercial and industrial	35,169		(8,734)		945		5,117		32,497
Franchise non-real estate secured	16,029		—		150		(400)		15,779
SBA non-real estate secured	441		(67)		68		30		472
Retail loans
Single family residential	352		(90)		1		228		491
Consumer loans	221		(895)		35		775		136
Totals	$	195,651	$	(15,211)	$	1,510	$	6,148	$	188,098

	Three Months Ended September 30, 2022
(Dollars in thousands)	Beginning ACL Balance		Charge-offs		Recoveries		Provision for Credit Losses		Ending ACL Balance
Investor loans secured by real estate
CRE non-owner occupied	$	37,221	$	(1,128)	$	—	$	1,011	$	37,104
Multifamily	56,293		—		—		(207)		56,086
Construction and land	5,436		—		—		1,004		6,440
SBA secured by real estate	2,865		—		—		90		2,955
Business loans secured by real estate
CRE owner-occupied	31,461		—		19		346		31,826
Franchise real estate secured	6,530		—		—		180		6,710
SBA secured by real estate	5,149		—		—		(364)		4,785
Commercial loans
Commercial and industrial	37,048		(190)		143		(1,503)		35,498
Franchise non-real estate secured	13,124		—		—		70		13,194
SBA non-real estate secured	452		—		26		(38)		440
Retail loans
Single family residential	278		—		58		(40)		296
Consumer loans	218		—		—		(3)		215
Totals	$	196,075	$	(1,318)	$	246	$	546	$	195,549

	Nine Months Ended September 30, 2022
(Dollars in thousands)	Beginning ACL Balance		Charge-offs		Recoveries		Provision for Credit Losses		Ending ACL Balance
Investor loans secured by real estate
CRE non-owner occupied	$	37,380	$	(1,128)	$	—	$	852	$	37,104
Multifamily	55,209		—		—		877		56,086
Construction and land	5,211		—		—		1,229		6,440
SBA secured by real estate	3,201		(70)		—		(176)		2,955
Business loans secured by real estate
CRE owner-occupied	29,575		—		33		2,218		31,826
Franchise real estate secured	7,985		—		—		(1,275)		6,710
SBA secured by real estate	4,866		—		—		(81)		4,785
Commercial loans
Commercial and industrial	38,136		(7,750)		2,517		2,595		35,498
Franchise non-real estate secured	15,084		(448)		—		(1,442)		13,194
SBA non-real estate secured	565		(50)		44		(119)		440
Retail loans
Single family residential	255		—		91		(50)		296
Consumer loans	285		(2)		—		(68)		215
Totals	$	197,752	$	(9,448)	$	2,685	$	4,560	$	195,549

Schedule of Fair Value, off-Balance-Sheet Risks

The following table summarizes the activities in the ACL for off-balance sheet commitments for the periods indicated:

	Three Months Ended				Nine Months Ended
	September 30,		September 30,		September 30,		September 30,
(Dollars in thousands)	2023		2022		2023		2022
Beginning ACL balance	$	24,455	$	24,106	$	23,641	$	27,290
Provision for credit losses on off-balance sheet commitments	1,386		549		2,200		(2,635)
Ending ACL balance	$	25,841	$	24,655	$	25,841	$	24,655