Loans Receivable (Tables)

6 Months Ended

Jun. 30, 2022

Loans and Leases Receivable Disclosure [Abstract]

Financing Receivable Credit Quality Indicators [Table Text Block]

The amortized cost of loans receivable, net of ACL on loans, consisted of the following portfolio segments and classes at the dates indicated:

	June 30, 2022		December 31, 2021
	(In thousands)
Commercial business:
Commercial and industrial	$	698,828	$	621,567
SBA PPP	11,334		145,840
Owner-occupied CRE	950,699		931,150
Non-owner occupied CRE	1,515,796		1,493,099
Total commercial business	3,176,657		3,191,656
Residential real estate	265,382		164,582
Real estate construction and land development:
Residential	90,546		85,547
Commercial and multifamily	128,060		141,336
Total real estate construction and land development	218,606		226,883
Consumer	213,419		232,541
Loans receivable	3,874,064		3,815,662
Allowance for credit losses on loans	(39,696)		(42,361)
Loans receivable, net	$	3,834,368	$	3,773,301
Balances included in the amortized cost of loans receivable:
Unamortized net discount on acquired loans	$	3,084	$	3,938
Unamortized net deferred fee	$	4,947	$	7,954

The following table presents the amortized cost of loans receivable by risk grade at the dates indicated:

	June 30, 2022
	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans		Revolving Loans Converted (2)		Loans Receivable
	2022		2021(1)		2020		2019		2018		Prior
	(In thousands)
Commercial business:
Commercial and industrial
Pass	$	96,128	$	101,302	$	93,475	$	73,299	$	38,742	$	90,980	$	168,030	$	45	$	662,001
SM	234		253		729		4,842		8,764		2,981		1,619		—		19,422
SS	882		169		696		4,581		1,163		6,866		2,171		877		17,405
Total	97,244		101,724		94,900		82,722		48,669		100,827		171,820		922		698,828
SBA PPP
Pass	—		11,175		159		—		—		—		—		—		11,334
Owner-occupied CRE
Pass	78,387		171,470		91,633		180,596		73,797		316,424		—		—		912,307
SM	—		—		—		1,698		2,573		12,042		—		—		16,313
SS	—		261		679		—		3,755		17,384		—		—		22,079
Total	78,387		171,731		92,312		182,294		80,125		345,850		—		—		950,699
Non-owner occupied CRE
Pass	125,451		185,105		166,150		240,396		139,626		578,421		—		—		1,435,149
SM	—		8,435		—		3,652		—		16,655		—		—		28,742
SS	—		—		—		—		3,626		48,279		—		—		51,905
Total	125,451		193,540		166,150		244,048		143,252		643,355		—		—		1,515,796
Total commercial business
Pass	299,966		469,052		351,417		494,291		252,165		985,825		168,030		45		3,020,791
SM	234		8,688		729		10,192		11,337		31,678		1,619		—		64,477
SS	882		430		1,375		4,581		8,544		72,529		2,171		877		91,389
Total	301,082		478,170		353,521		509,064		272,046		1,090,032		171,820		922		3,176,657
Residential real estate
Pass(1)	60,870		140,448		24,564		17,699		4,716		16,907		—		—		265,204
SS	—		—		—		—		—		178		—		—		178
Total	60,870		140,448		24,564		17,699		4,716		17,085		—		—		265,382
Real estate construction and land development:
Residential
Pass	21,664		43,877		10,330		12,002		1,005		1,668		—		—		90,546
Commercial and multifamily
Pass	8,832		75,096		23,991		6,952		3,186		2,013		—		—		120,070
SM	—		—		1,871		5,714		—		—		—		—		7,585
SS	—		—		—		—		—		405		—		—		405
Total	8,832		75,096		25,862		12,666		3,186		2,418		—		—		128,060
Total real estate construction and land development
Pass	30,496		118,973		34,321		18,954		4,191		3,681		—		—		210,616
SM	—		—		1,871		5,714		—		—		—		—		7,585
SS	—		—		—		—		—		405		—		—		405
Total	30,496		118,973		36,192		24,668		4,191		4,086		—		—		218,606

	June 30, 2022
	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans		Revolving Loans Converted (2)		Loans Receivable
	2022		2021(1)		2020		2019		2018		Prior
Consumer
Pass	2,475		770		12,451		35,722		21,337		19,062		118,826		329		210,972
SS	—		—		169		558		366		1,346		8		—		2,447
Total	2,475		770		12,620		36,280		21,703		20,408		118,834		329		213,419
Loans receivable
Pass	393,807		729,243		422,753		566,666		282,409		1,025,475		286,856		374		3,707,583
SM	234		8,688		2,600		15,906		11,337		31,678		1,619		—		72,062
SS	882		430		1,544		5,139		8,910		74,458		2,179		877		94,419
Total	$	394,923	$	738,361	$	426,897	$	587,711	$	302,656	$	1,131,611	$	290,654	$	1,251	$	3,874,064

(1) The 2021 origination year includes $42.2 million of pass grade residential real estate loans purchased during the six months ended June 30, 2022 which were originated during the year ended December 31, 2021.

(2) Represents the loans receivable balance at June 30, 2022 which was converted from a revolving loan to an amortizing loan during the six months ended June 30, 2022.

	December 31, 2021
	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans		Revolving Loans Converted (1)		Loans Receivable
	2021		2020		2019		2018		2017		Prior
	(In thousands)
Commercial business:
Commercial and industrial
Pass	$	95,960	$	100,193	$	94,657	$	54,707	$	28,558	$	77,294	$	127,651	$	1,035	$	580,055
SM	326		884		5,998		1,425		2,223		2,401		2,048		353		15,658
SS	1,443		1,287		5,912		2,809		2,526		6,907		4,402		568		25,854
Total	97,729		102,364		106,567		58,941		33,307		86,602		134,101		1,956		621,567
SBA PPP
Pass	139,253		6,587		—		—		—		—		—		—		145,840
Owner-occupied CRE
Pass	182,742		90,609		188,380		73,714		66,039		273,518		—		72		875,074
SM	264		—		3,079		7,521		3,937		16,724		—		—		31,525
SS	—		1,332		—		3,787		3,014		16,418		—		—		24,551
Total	183,006		91,941		191,459		85,022		72,990		306,660		—		72		931,150
Non-owner-occupied CRE
Pass	187,860		185,650		244,863		149,090		144,896		499,486		—		—		1,411,845
SM	—		—		5,674		—		15,482		2,400		—		—		23,556
SS	—		—		—		3,379		—		54,319		—		—		57,698
Total	187,860		185,650		250,537		152,469		160,378		556,205		—		—		1,493,099
Total commercial business
Pass	605,815		383,039		527,900		277,511		239,493		850,298		127,651		1,107		3,012,814
SM	590		884		14,751		8,946		21,642		21,525		2,048		353		70,739
SS	1,443		2,619		5,912		9,975		5,540		77,644		4,402		568		108,103
Total	607,848		386,542		548,563		296,432		266,675		949,467		134,101		2,028		3,191,656
Residential real estate
Pass	85,089		27,090		23,295		5,672		6,141		16,891		—		—		164,178
SS	—		—		—		—		—		404		—		—		404
Total	85,089		27,090		23,295		5,672		6,141		17,295		—		—		164,582

	December 31, 2021
	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans		Revolving Loans Converted (1)		Loans Receivable
	2021		2020		2019		2018		2017		Prior
	(In thousands)
Real estate construction and land development:
Residential
Pass	44,892		23,728		12,266		2,921		389		1,351		—		—		85,547
Commercial and multifamily
Pass	56,448		41,616		34,117		5,794		710		1,379		—		—		140,064
SM	—		—		68		—		—		213		—		—		281
SS	—		571		—		—		—		420		—		—		991
Total	56,448		42,187		34,185		5,794		710		2,012		—		—		141,336
Total real estate construction and land development
Pass	101,340		65,344		46,383		8,715		1,099		2,730		—		—		225,611
SM	—		—		68		—		—		213		—		—		281
SS	—		571		—		—		—		420		—		—		991
Total	101,340		65,915		46,451		8,715		1,099		3,363		—		—		226,883
Consumer
Pass	1,286		15,737		46,041		29,819		15,068		13,026		108,492		120		229,589
SS	—		181		657		476		542		1,043		36		17		2,952
Total	1,286		15,918		46,698		30,295		15,610		14,069		108,528		137		232,541
Loans receivable
Pass	793,530		491,210		643,619		321,717		261,801		882,945		236,143		1,227		3,632,192
SM	590		884		14,819		8,946		21,642		21,738		2,048		353		71,020
SS	1,443		3,371		6,569		10,451		6,082		79,511		4,438		585		112,450
Total	$	795,563	$	495,465	$	665,007	$	341,114	$	289,525	$	984,194	$	242,629	$	2,165	$	3,815,662

(1) Represents the loans receivable balance at December 31, 2021 which was converted from a revolving loan to an amortizing loan during the year ended December 31, 2021.

Schedule of nonaccrual loans

The following tables present the amortized cost of nonaccrual loans for the dates indicated:

	June 30, 2022
	Nonaccrual without ACL		Nonaccrual with ACL		Total Nonaccrual
	(In thousands)
Commercial business:
Commercial and industrial	$	5,604	$	569	$	6,173
Owner-occupied CRE	—		4,302		4,302
Total	$	5,604	$	4,871	$	10,475

	December 31, 2021
	Nonaccrual without ACL		Nonaccrual with ACL		Total Nonaccrual
	(In thousands)
Commercial business:
Commercial and industrial	$	6,454	$	3,827	$	10,281
Owner-occupied CRE	3,036		5,138		8,174
Non-owner occupied CRE	1,273		3,379		4,652
Total commercial business	10,763		12,344		23,107
Residential real estate	—		47		47

	December 31, 2021
	Nonaccrual without ACL		Nonaccrual with ACL		Total Nonaccrual
	(In thousands)
Real estate construction and land development:
Commercial and multifamily	—		571		571
Consumer	—		29		29
Total	$	10,763	$	12,991	$	23,754

The following table presents the reversal of interest income on loans due to the write-off of accrued interest receivable upon the initial classification of loans as nonaccrual loans and the interest income recognized due to payment in full or sale of previously classified nonaccrual loans during the following periods:

	Three Months Ended June 30, 2022				Three Months Ended June 30, 2021
	Interest Income Reversed		Interest Income Recognized		Interest Income Reversed		Interest Income Recognized
	(In thousands)
Commercial business:
Commercial and industrial	$	(12)	$	90	$	(5)	$	1,981
Owner-occupied CRE	—		—		—		3
Total	$	(12)	$	90	$	(5)	$	1,984

	Six Months Ended June 30, 2022				Six Months Ended June 30, 2021
	Interest Income Reversed		Interest Income Recognized		Interest Income Reversed		Interest Income Recognized
	(in thousands)
Commercial business:
Commercial and industrial	$	(14)	$	229	$	(10)	$	2,044
Owner-occupied CRE	—		53		—		117
Non-owner occupied CRE	—		774		—		313
Total commercial business	(14)		1,056		(10)		2,474
Residential real estate	—		19		—		—
Real estate construction and land development:
Residential	—		—		—		73
Consumer	—		68		—		—
Total	$	(14)	$	1,143	$	(10)	$	2,547

Financing Receivable, Past Due [Table Text Block]

The amortized cost of past due loans as of June 30, 2022 and December 31, 2021 were as follows:

	June 30, 2022
	30-89 Days		90 Days or Greater		Total Past  Due		Current		Loans Receivable
	(In thousands)
Commercial business:
Commercial and industrial	$	259	$	7,190	$	7,449	$	691,379	$	698,828
SBA PPP	—		—		—		11,334		11,334
Owner-occupied CRE	1,056		189		1,245		949,454		950,699
Non-owner occupied CRE	—		—		—		1,515,796		1,515,796

	June 30, 2022
	30-89 Days		90 Days or Greater		Total Past  Due		Current		Loans Receivable
	(In thousands)
Total commercial business	1,315		7,379		8,694		3,167,963		3,176,657
Residential real estate	—		—		—		265,382		265,382
Real estate construction and land development:
Residential	—		—		—		90,546		90,546
Commercial and multifamily	—		—		—		128,060		128,060
Total real estate construction and land development	—		—		—		218,606		218,606
Consumer	651		199		850		212,569		213,419
Total	$	1,966	$	7,578	$	9,544	$	3,864,520	$	3,874,064

	December 31, 2021
	30-89 Days		90 Days or Greater		Total Past  Due		Current		Loans Receivable
	(In thousands)
Commercial business:
Commercial and industrial	$	1,858	$	6,821	$	8,679	$	612,888	$	621,567
SBA PPP	223		293		516		145,324		145,840
Owner-occupied CRE	2,397		112		2,509		928,641		931,150
Non-owner occupied CRE	—		—		—		1,493,099		1,493,099
Total commercial business	4,478		7,226		11,704		3,179,952		3,191,656
Residential real estate	420		10		430		164,152		164,582
Real estate construction and land development:
Residential	792		—		792		84,755		85,547
Commercial and multifamily	3,474		571		4,045		137,291		141,336
Total real estate construction and land development	4,266		571		4,837		222,046		226,883
Consumer	1,026		—		1,026		231,515		232,541
Total	$	10,190	$	7,807	$	17,997	$	3,797,665	$	3,815,662

Loans and Lease Receivable Collateral for Secured Borrowings [Table Text Block]

The type of collateral securing loans individually evaluated for credit losses and for which the repayment was expected to be provided substantially through the operation or sale of the collateral as of June 30, 2022 and December 31, 2021 was as follows, with balances representing the amortized cost of the loan classified by the primary collateral category of each loan if multiple collateral sources secure the loan:

	June 30, 2022
	CRE		Farmland		Residential Real Estate		Total
	(In thousands)
Commercial business:
Commercial and industrial	$	1,239	$	2,492	$	1,316	$	5,047
Owner-occupied CRE	189		—		—		189
Total	$	1,428	$	2,492	$	1,316	$	5,236

	December 31, 2021
	CRE	Farmland	Residential Real Estate	Other	Total
	(In thousands)
Commercial business:

	December 31, 2021
	CRE		Farmland		Residential Real Estate		Other		Total
	(In thousands)
Commercial and industrial	$	1,499	$	4,362	$	1,036	$	245	$	7,142
Owner-occupied CRE	3,035		—		—		—		3,035
Non-owner occupied CRE	1,273		—		—		—		1,273
Total commercial business	5,807		4,362		1,036		245		11,450
Real estate construction and land development:
Commercial and multifamily	571		—		—		—		571
Total	$	6,378	$	4,362	$	1,036	$	245	$	12,021

Loans Receivable

Loans that were modified as TDR loans are set forth in the following table for the periods indicated:

	Three Months Ended June 30,
	2022			2021
	Number of Contracts	Amortized Cost (1) (2)		Number of Contracts	Amortized Cost (1) (2)
	(Dollars in thousands)
Commercial business:
Commercial and industrial	3	$	1,727	18	$	5,673
Owner-occupied CRE	—	—		1	2,200
Non-owner occupied CRE	—	—		1	251
Total commercial business	3	1,727		20	8,124
Real estate construction and land development:
Commercial and multifamily	—	—		1	443
Consumer	3	44		6	146
Total	6	$	1,771	27	$	8,713

	Six Months Ended June 30,
	2022			2021
	Number of Contracts	Amortized Cost (1) (2)		Number of Contracts	Amortized Cost (1) (2)
	(Dollars in thousands)
Commercial business:
Commercial and industrial	4	$	2,610	31	$	8,713
Owner-occupied CRE	—	—		2	5,857
Non-owner occupied CRE	—	—		2	2,222
Total commercial business	4	2,610		35	16,792
Residential real estate	—	—		1	181
Real estate construction and land development:
Commercial and multifamily	—	—		1	443
Consumer	8	95		21	511
Total	12	$	2,705	58	$	17,927

(1) Number of contracts and amortized cost represent loans which have balances as of period end, net of subsequent payments after modifications. Certain TDR loans may have been paid-down or charged-off during the six months ended June 30, 2022 and 2021.

(2) As the Bank did not forgive any principal or interest balance as part of the loan modifications, the Bank’s amortized cost in each loan at the date of modification (pre-modification) did not change as a result of the modification (post-modification).

Troubled debt restructuring loans, subsequently defaulted

The following table presents loans that were modified in a TDR and subsequently defaulted within twelve months from the modification date during the periods indicated:

	Three Months Ended June 30,
	2022			2021
	Number of Contracts (1)	Amortized Cost (1)		Number of Contracts (1)	Amortized Cost (1)
	(Dollars in thousands)
Commercial business:
Commercial and industrial	—	$	—	1	$	46

	Six Months Ended June 30,
	2022			2021
	Number of Contracts (1)	Amortized Cost (1)		Number of Contracts (1)	Amortized Cost (1)
	(Dollars in thousands)
Commercial business:
Commercial and industrial	—	$	—	2	$	789
Owner-occupied CRE	1	189		—	—

(1) Number of contracts and amortized cost represent TDR loans which have balances as of period end, net of subsequent payments after modifications. Certain TDR loans may have been paid-down or charged-off during the six months ended June 30, 2022 and 2021.

Troubled debt restructurings on financing receivables

Loans that were modified as TDR loans are set forth in the following table for the periods indicated:

	Three Months Ended June 30,
	2022			2021
	Number of Contracts	Amortized Cost (1) (2)		Number of Contracts	Amortized Cost (1) (2)
	(Dollars in thousands)
Commercial business:
Commercial and industrial	3	$	1,727	18	$	5,673
Owner-occupied CRE	—	—		1	2,200
Non-owner occupied CRE	—	—		1	251
Total commercial business	3	1,727		20	8,124
Real estate construction and land development:
Commercial and multifamily	—	—		1	443
Consumer	3	44		6	146
Total	6	$	1,771	27	$	8,713

	Six Months Ended June 30,
	2022			2021
	Number of Contracts	Amortized Cost (1) (2)		Number of Contracts	Amortized Cost (1) (2)
	(Dollars in thousands)
Commercial business:
Commercial and industrial	4	$	2,610	31	$	8,713
Owner-occupied CRE	—	—		2	5,857
Non-owner occupied CRE	—	—		2	2,222
Total commercial business	4	2,610		35	16,792
Residential real estate	—	—		1	181
Real estate construction and land development:
Commercial and multifamily	—	—		1	443
Consumer	8	95		21	511
Total	12	$	2,705	58	$	17,927

(1) Number of contracts and amortized cost represent loans which have balances as of period end, net of subsequent payments after modifications. Certain TDR loans may have been paid-down or charged-off during the six months ended June 30, 2022 and 2021.

(2) As the Bank did not forgive any principal or interest balance as part of the loan modifications, the Bank’s amortized cost in each loan at the date of modification (pre-modification) did not change as a result of the modification (post-modification).