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Loans Receivable (Tables)
12 Months Ended
Dec. 31, 2022
Loans and Leases Receivable Disclosure [Abstract]  
Schedule of loans receivable
The amortized cost of loans receivable, net of ACL on loans consisted of the following portfolio segments and classes at the dates indicated:
December 31, 2022December 31, 2021
(In thousands)
Commercial business:
Commercial and industrial$692,100 $621,567 
SBA PPP1,468 145,840 
Owner-occupied CRE937,040 931,150 
Non-owner occupied CRE1,586,632 1,493,099 
Total commercial business3,217,240 3,191,656 
Residential real estate
343,631 164,582 
Real estate construction and land development:
Residential
80,074 85,547 
Commercial and multifamily
214,038 141,336 
Total real estate construction and land development294,112 226,883 
Consumer195,875 232,541 
Loans receivable4,050,858 3,815,662 
Allowance for credit losses on loans(42,986)(42,361)
 Loans receivable, net$4,007,872 $3,773,301 
Balances included in the amortized cost of loans receivable:
Unamortized net discount on acquired loans$(2,501)$(3,938)
Unamortized net deferred fee$(10,016)$(7,953)
Amortized cost of loans receivable
The following table presents the amortized cost of loans receivable by risk grade at the dates indicated:
December 31, 2022
Term Loans
Amortized Cost Basis by Origination Year
Revolving Loans
Revolving Loans Converted (1)
Loans Receivable
20222021202020192018Prior
(In thousands)
Commercial business:
Commercial and industrial
Pass$168,818 $93,302 $82,437 $61,160 $33,957 $74,181 $146,795 $172 $660,822 
SM212 109 443 4,637 362 4,447 5,433 — 15,643 
December 31, 2022
Term Loans
Amortized Cost Basis by Origination Year
Revolving Loans
Revolving Loans Converted (1)
Loans Receivable
20222021202020192018Prior
SS773 188 1,710 3,465 559 5,098 3,674 168 15,635 
Total169,803 93,599 84,590 69,262 34,878 83,726 155,902 340 692,100 
SBA PPP
Pass— 1,351 117 — — — — — 1,468 
Owner-occupied CRE
Pass134,432 167,927 93,834 157,096 62,876 282,212 — — 898,377 
SM— 1,744 — — 2,540 16,664 — 247 21,195 
SS— — 671 — 3,722 13,075 — — 17,468 
Total134,432 169,671 94,505 157,096 69,138 311,951 — 247 937,040 
Non-owner occupied CRE
Pass240,151 189,300 160,930 258,778 121,369 561,645 — — 1,532,173 
SM— 8,349 — 4,172 — 12,190 — — 24,711 
SS— — — — 3,627 26,121 — — 29,748 
Total240,151 197,649 160,930 262,950 124,996 599,956 — — 1,586,632 
Total commercial business
Pass543,401 451,880 337,318 477,034 218,202 918,038 146,795 172 3,092,840 
SM212 10,202 443 8,809 2,902 33,301 5,433 247 61,549 
SS773 188 2,381 3,465 7,908 44,294 3,674 168 62,851 
Total544,386 462,270 340,142 489,308 229,012 995,633 155,902 587 3,217,240 
Residential real estate
Pass132,510 149,934 24,668 16,803 4,207 15,337 — — 343,459 
SS— — — — — 172 — — 172 
Total132,510 149,934 24,668 16,803 4,207 15,509 — — 343,631 
Real estate construction and land development:
Residential
Pass45,521 26,675 2,891 3,061 871 1,055 — — 80,074 
Commercial and multifamily
Pass71,168 123,626 6,272 1,084 2,562 995 — — 205,707 
SM— — 2,213 5,687 — — — — 7,900 
SS— — — 37 — 394 — — 431 
Total71,168 123,626 8,485 6,808 2,562 1,389 — — 214,038 
Total real estate construction and land development
Pass116,689 150,301 9,163 4,145 3,433 2,050 — — 285,781 
SM— — 2,213 5,687 — — — — 7,900 
SS— — — 37 — 394 — — 431 
Total116,689 150,301 11,376 9,869 3,433 2,444 — — 294,112 
Consumer
Pass3,379 509 9,848 27,370 15,563 19,855 116,605 435 193,564 
SS— — 168 559 320 1,120 44 100 2,311 
Total3,379 509 10,016 27,929 15,883 20,975 116,649 535 195,875 
Loans receivable
Pass795,979 752,624 380,997 525,352 241,405 955,280 263,400 607 3,915,644 
SM212 10,202 2,656 14,496 2,902 33,301 5,433 247 69,449 
SS773 188 2,549 4,061 8,228 45,980 3,718 268 65,765 
Total$796,964 $763,014 $386,202 $543,909 $252,535 $1,034,561 $272,551 $1,122 $4,050,858 
(1) Represents the loans receivable balance at December 31, 2022 which was converted from a revolving loan to an amortizing loan during the year ended December 31, 2022.
December 31, 2021
Term Loans
Amortized Cost Basis by Origination Year
Revolving Loans
Revolving Loans Converted (1)
Loans Receivable
20212020201920182017Prior
(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 
SM326 884 5,998 1,425 2,223 2,401 2,048 353 15,658 
SS1,443 1,287 5,912 2,809 2,526 6,907 4,402 568 25,854 
Total97,729 102,364 106,567 58,941 33,307 86,602 134,101 1,956 621,567 
SBA PPP
Pass139,253 6,587 — — — — — — 145,840 
Total139,253 6,587 — — — — — — 145,840 
Owner-occupied CRE
Pass182,742 90,609 188,380 73,714 66,039 273,518 — 72 875,074 
SM264 — 3,079 7,521 3,937 16,724 — — 31,525 
SS— 1,332 — 3,787 3,014 16,418 — — 24,551 
Doubtful or Loss— — — — — — — — — 
Total183,006 91,941 191,459 85,022 72,990 306,660 — 72 931,150 
Non-owner-occupied CRE
Pass187,860 185,650 244,863 149,090 144,896 499,486 — — 1,411,845 
SM— — 5,674 — 15,482 2,400 — — 23,556 
SS— — — 3,379 — 54,319 — — 57,698 
Total187,860 185,650 250,537 152,469 160,378 556,205 — — 1,493,099 
Total commercial business
Pass605,815 383,039 527,900 277,511 239,493 850,298 127,651 1,107 3,012,814 
SM590 884 14,751 8,946 21,642 21,525 2,048 353 70,739 
SS1,443 2,619 5,912 9,975 5,540 77,644 4,402 568 108,103 
Total607,848 386,542 548,563 296,432 266,675 949,467 134,101 2,028 3,191,656 
Residential real estate
Pass85,089 27,090 23,295 5,672 6,141 16,891 — — 164,178 
SM— — — — — — — — — 
SS— — — — — 404 — — 404 
Total85,089 27,090 23,295 5,672 6,141 17,295 — — 164,582 
Real estate construction and land development:
Residential
Pass44,892 23,728 12,266 2,921 389 1,351 — — 85,547 
Total44,892 23,728 12,266 2,921 389 1,351 — — 85,547 
Commercial and multifamily
Pass56,448 41,616 34,117 5,794 710 1,379 — — 140,064 
SM— — 68 — — 213 — — 281 
SS— 571 — — — 420 — — 991 
Total56,448 42,187 34,185 5,794 710 2,012 — — 141,336 
Total real estate construction and land development
Pass101,340 65,344 46,383 8,715 1,099 2,730 — — 225,611 
SM— — 68 — — 213 — — 281 
SS— 571 — — — 420 — — 991 
Total101,340 65,915 46,451 8,715 1,099 3,363 — — 226,883 
December 31, 2021
Term Loans
Amortized Cost Basis by Origination Year
Revolving Loans
Revolving Loans Converted (1)
Loans Receivable
20212020201920182017Prior
Consumer
Pass1,286 15,737 46,041 29,819 15,068 13,026 108,492 120 229,589 
SM— — — — — — — — — 
SS— 181 657 476 542 1,043 36 17 2,952 
Total1,286 15,918 46,698 30,295 15,610 14,069 108,528 137 232,541 
Loans receivable
Pass793,530 491,210 643,619 321,717 261,801 882,945 236,143 1,227 3,632,192 
SM590 884 14,819 8,946 21,642 21,738 2,048 353 71,020 
SS1,443 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:
December 31, 2022
Nonaccrual without ACLNonaccrual with ACLTotal Nonaccrual
(In thousands)
Commercial business:
Commercial and industrial$4,503 $1,154 $5,657 
Owner-occupied CRE— 212 212 
Total commercial business4,503 1,366 5,869 
Real estate construction and land development:
Commercial and multifamily
— 37 37 
Total$4,503 $1,403 $5,906 
December 31, 2021
Nonaccrual without ACLNonaccrual with ACLTotal Nonaccrual
(In thousands)
Commercial business:
Commercial and industrial$6,454 $3,827 $10,281 
Owner-occupied CRE3,036 5,138 8,174 
Non-owner occupied CRE1,273 3,379 4,652 
Total commercial business10,763 12,344 23,107 
Residential real estate
— 47 47 
Real estate construction and land development:
Commercial and multifamily
— 571 571 
Consumer— 29 29 
Total$10,763 $12,991 $23,754 
The following table presents the reversal of interest income on loans due to the write-off of accrued interest receivable upon the initial classification of loans as nonaccrual loans and the interest income recognized due to payment in full or sale of previously classified nonaccrual loans during the following periods:
Year Ended December 31, 2022
Year Ended December 31, 2021
Interest Income ReversedInterest Income RecognizedInterest Income ReversedInterest Income Recognized
(In thousands)
Commercial business:
Commercial and industrial$(14)$263 $(10)$2,295 
Owner-occupied CRE— 53 — 117 
Non-owner occupied CRE— 774 — 601 
Total commercial business(14)1,090 (10)3,013 
Residential real estate
— 19 — — 
Real estate construction and land development:
Residential
— — — 71 
Commercial and multifamily
(14)65 — — 
Total real estate construction and land development(14)65 — 71 
Consumer— 68 (1)52 
Total$(28)$1,242 $(11)$3,136 
Amortized cost of past due loans The amortized cost of past due loans as of December 31, 2022 and December 31, 2021 were as follows:
December 31, 2022
30-89 Days90 Days 
or Greater
Total Past 
Due
CurrentLoans Receivable
(In thousands)
Commercial business:
Commercial and industrial$586 $6,104 $6,690 $685,410 $692,100 
SBA PPP236 — 236 1,232 1,468 
Owner-occupied CRE— 189 189 936,851 937,040 
Non-owner occupied CRE— — — 1,586,632 1,586,632 
Total commercial business822 6,293 7,115 3,210,125 3,217,240 
Residential real estate
3,066 — 3,066 340,565 343,631 
Real estate construction and land development:
Residential
— — — 80,074 80,074 
Commercial and multifamily
— — — 214,038 214,038 
Total real estate construction and land development— — — 294,112 294,112 
Consumer1,561 — 1,561 194,314 195,875 
Total$5,449 $6,293 $11,742 $4,039,116 $4,050,858 
December 31, 2021
30-89 Days90 Days or
Greater
Total Past 
Due
CurrentLoans Receivable
(In thousands)
Commercial business:
Commercial and industrial$1,858 $6,821 $8,679 $612,888 $621,567 
SBA PPP223 293 516 145,324 145,840 
December 31, 2021
30-89 Days90 Days or
Greater
Total Past 
Due
CurrentLoans Receivable
(In thousands)
Owner-occupied CRE2,397 112 2,509 928,641 931,150 
Non-owner occupied CRE— — — 1,493,099 1,493,099 
Total commercial business4,478 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 development4,266 571 4,837 222,046 226,883 
Consumer1,026 — 1,026 231,515 232,541 
Total$10,190 $7,807 $17,997 $3,797,665 $3,815,662 
Collateral-dependent loans
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 December 31, 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:
December 31, 2022
CREFarmlandResidential Real EstateTotal
(In thousands)
Commercial business:
Commercial and industrial$1,239 $1,977 $929 $4,145 
Owner-occupied CRE189 — — 189 
Total$1,428 $1,977 $929 $4,334 
December 31, 2021
CREFarmlandResidential Real EstateOtherTotal
(In thousands)
Commercial business:
Commercial and industrial$1,499 $4,362 $1,036 $245 $7,142 
Owner-occupied CRE3,035 — — — 3,035 
Non-owner occupied CRE1,273 — — — 1,273 
Total commercial business5,807 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 
Troubled debt restructured loans
Loans that were modified as TDR loans are set forth in the following tables for the periods indicated:
Year Ended December 31,
202220212020
Number of
Contracts
Amortized Cost (1) (2)
Number of
Contracts
Amortized Cost (1) (2)
Number of
Contracts
Amortized Cost (1) (2)
(Dollars in thousands)
Commercial business:
Commercial and industrial$2,556 31 $9,710 75 $36,118 
Owner-occupied CRE247 16,565 14 19,326 
Non-owner occupied CRE— — 17,640 25,728 
Total commercial business2,803 42 43,915 98 81,172 
Residential real estate
— — 178 22 
Real estate construction and land development:
Residential
— — — — 1,926 
Commercial and multifamily
5,687 450 450 
Total real estate construction and land development5,687 450 2,376 
Consumer320 22 511 48 1,198 
Total19 $8,810 66 $45,054 152 $84,768 
(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 years ended December 31, 2022, 2021 and 2020.
(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 restructured 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:
Year Ended December 31,
202220212020
Number of
Contracts (1)
Amortized Cost (1)
Number of
Contracts (1)
Amortized Cost (1)
Number of
Contracts (1)
Amortized Cost (1)
(Dollars in thousands)
Commercial business:
Commercial and industrial— $— $1,379 $2,136 
Owner-occupied CRE189 — — 1,369 
Non-owner occupied CRE— — — — 1,811 
Total commercial business189 1,379 5,316 
Total$189 $1,379 $5,316 
(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 years ended December 31, 2022, 2021 and 2020.
Activity in related party loans Activity in related party loans during the periods indicated was as follows:
Year Ended December 31,
202220212020
(In thousands)
Balance outstanding at the beginning of year$7,122 $7,694 $8,144 
Principal additions— — 199 
Principal reductions(243)(572)(649)
Balance outstanding at the end of year$6,879 $7,122 $7,694 
Residential real estate loan sales
The following table presents information concerning the origination and sale of the Bank's residential real estate loans and the gains from their sale during the periods indicated:
 Year Ended December 31,
 202220212020
 (In thousands)
Originated (1)
$15,190 $190,734 $191,207 
Sold16,666 89,899 137,580 
Gain on sale of loans, net (2)
633 3,644 5,044 
(1) Includes loans originated for sale in the secondary market or for the Bank's loan portfolio.
(2) Excludes net gains on sales of SBA and other loans.
Details of SBNA loans serviced etails of loans serviced for others for the periods indicated:
 December 31, 2022December 31, 2021
 (In thousands)
Loans serviced for others with participating interest, gross loan balance$17,375 $30,852 
Loans serviced for others with participating interest, participation balance owned by Bank (1)
3,791 7,088 
(1) Included in the balance of "Loans receivable" on the Consolidated Statements of Financial Condition.