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Loans and Allowance for Credit Losses on Loans (Tables)
9 Months Ended
Sep. 30, 2023
Loans and Allowance for Credit Losses on Loans  
Schedule of loans

    

September 30, 

    

December 31, 

2023

    

2022

(Dollars in thousands)

Loans held-for-investment:

Commercial

$

430,664

$

533,915

Real estate:

CRE - owner occupied

589,751

614,663

CRE - non-owner occupied

 

1,208,324

 

1,066,368

Land and construction

 

158,138

 

163,577

Home equity

 

124,477

 

120,724

Multifamily

253,129

244,882

Residential mortgages

503,006

537,905

Consumer and other

 

18,526

 

17,033

Loans

 

3,286,015

 

3,299,067

Deferred loan fees, net

 

(554)

 

(517)

Loans, net of deferred fees

 

3,285,461

 

3,298,550

Allowance for credit losses on loans

 

(47,702)

 

(47,512)

Loans, net

$

3,237,759

$

3,251,038

Schedule of changes in allowance for loan (credit) losses

Three Months Ended September 30, 2023

CRE

CRE

Owner

Non-owner

Land &

Home

Multi-

Residential

Consumer

    

Commercial

    

Occupied

Occupied

    

Construction

Equity

Family

Mortgages

and Other

    

Total

(Dollars in thousands)

Beginning of period balance

$

6,550

$

5,463

$

23,523

$

2,870

$

730

$

4,383

$

4,129

$

155

$

47,803

Charge-offs

 

(447)

(447)

Recoveries

 

59

2

117

178

Net (charge-offs) recoveries

 

(388)

 

2

 

117

 

 

(269)

Provision for (recapture of) credit losses on loans

(557)

(120)

1,396

(126)

(140)

331

(635)

19

168

End of period balance

$

5,605

$

5,345

$

24,919

$

2,744

$

707

$

4,714

$

3,494

$

174

$

47,702

Three Months Ended September 30, 2022

CRE

CRE

Owner

Non-owner

Land &

Home

Multi-

Residential

Consumer

    

Commercial

    

Occupied

Occupied

    

Construction

Equity

Family

Mortgages

and Other

    

Total

(Dollars in thousands)

Beginning of period balance

$

6,602

$

6,009

$

21,474

$

2,498

$

695

$

2,824

$

5,232

$

156

$

45,490

Charge-offs

 

(7)

 

 

 

(7)

Recoveries

 

202

 

4

 

26

 

200

 

432

Net recoveries

 

195

 

4

 

26

 

200

 

425

Provision for (recapture of) credit losses on loans

 

302

(96)

(416)

(7)

(36)

406

1,077

(224)

1,006

End of period balance

$

7,099

$

5,917

$

21,058

$

2,491

$

685

$

3,230

$

6,309

$

132

$

46,921

Nine Months Ended September 30, 2023

CRE

CRE

Owner

Non-owner

Land &

Home

Multi-

Residential

Consumer

    

Commercial

    

Occupied

Occupied

    

Construction

Equity

Family

Mortgages

and Other

    

Total

(Dollars in thousands)

Beginning of period balance

$

6,617

$

5,751

$

22,135

$

2,941

$

666

$

3,366

$

5,907

$

129

$

47,512

Charge-offs

 

(605)

 

 

(246)

 

(851)

Recoveries

 

247

 

10

 

324

 

 

581

Net (charge-offs) recoveries

 

(358)

 

10

 

78

 

 

(270)

Provision for (recapture of) credit losses on loans

(654)

(416)

2,784

(197)

(37)

1,348

(2,413)

45

460

End of period balance

$

5,605

$

5,345

$

24,919

$

2,744

$

707

$

4,714

$

3,494

$

174

$

47,702

Nine Months Ended September 30, 2022

CRE

CRE

Owner

Non-owner

Land &

Home

Multi-

Residential

Consumer

Commercial

Occupied

Occupied

    

Construction

Equity

Family

Mortgages

and Other

    

Total

(Dollars in thousands)

Beginning of period balance

$

8,414

$

7,954

$

17,125

$

1,831

$

864

$

2,796

$

4,132

$

174

$

43,290

Charge-offs

 

(378)

 

 

 

(378)

Recoveries

 

335

 

11

 

81

 

3,324

 

3,751

Net (charge-offs) recoveries

 

(43)

 

11

 

81

 

3,324

 

3,373

Provision for (recapture of) credit losses on loans

(1,272)

(2,048)

3,933

660

(260)

434

2,177

(3,366)

258

End of period balance

$

7,099

$

5,917

$

21,058

$

2,491

$

685

$

3,230

$

6,309

$

132

$

46,921

Schedule of nonperforming loans

September 30, 2023

Nonaccrual

Nonaccrual

Loans 

with no Specific

with Specific

over 90 Days

Allowance for

Allowance for

Past Due

Credit

Credit

and Still

Losses

Losses

Accruing

Total

(Dollars in thousands)

Commercial

$

1,269

$

443

$

1,966

$

3,678

Real estate:

CRE - Owner Occupied

 

 

CRE - Non-Owner Occupied

 

Home equity

 

90

 

90

Residential mortgages

1,716

1,716

Total

$

3,075

$

443

$

1,966

$

5,484

December 31, 2022

    

    

Restructured

    

Nonaccrual

Nonaccrual

and Loans 

with no Specific

with no Specific

over 90 Days

Allowance for

Allowance for

Past Due

Credit

Credit

and Still

Losses

Losses

Accruing

Total

(Dollars in thousands)

Commercial

$

318

$

324

$

349

$

991

Real estate:

CRE - Owner Occupied

CRE - Non-Owner Occupied

 

1,336

 

1,336

Home equity

98

98

Total

$

416

$

324

$

1,685

$

2,425

Schedule of aging of past due loans by class of loans

    

September 30, 2023

    

30 - 59

    

60 - 89

    

90 Days or

    

    

    

Days

Days

Greater

Total

Past Due

Past Due

Past Due

Past Due

Current

Total

(Dollars in thousands)

Commercial

$

4,621

$

1,298

$

3,382

$

9,301

$

421,363

$

430,664

Real estate:

CRE - Owner Occupied

 

809

809

 

588,942

 

589,751

CRE - Non-Owner Occupied

1,208,324

1,208,324

Land and construction

 

 

 

158,138

 

158,138

Home equity

 

90

 

90

 

124,387

 

124,477

Multifamily

253,129

253,129

Residential mortgages

1,716

1,716

501,290

503,006

Consumer and other

 

15

 

15

 

18,511

 

18,526

Total

$

4,636

$

2,107

$

5,188

$

11,931

$

3,274,084

$

3,286,015

    

December 31, 2022

    

30 - 59

    

60 - 89

    

90 Days or

    

    

    

Days

Days

Greater

Total

Past Due

Past Due

Past Due

Past Due

Current

Total

(Dollars in thousands)

Commercial

$

7,236

$

2,519

$

703

$

10,458

$

523,457

$

533,915

Real estate:

CRE - Owner Occupied

 

252

252

614,411

614,663

CRE - Non-Owner Occupied

1,336

1,336

1,065,032

1,066,368

Land and construction

 

163,577

163,577

Home equity

 

98

98

120,626

120,724

Multifamily

244,882

244,882

Residential mortgages

4,202

720

4,922

532,983

537,905

Consumer and other

 

17,033

17,033

Total

$

11,690

$

3,337

$

2,039

$

17,066

$

3,282,001

$

3,299,067

Summary of loan portfolio by loan type and credit quality classification

Revolving

Term Loans Amortized Cost Basis by Originated Period as of September 30, 2023

Loans

2018 and

Amortized

9/30/2023

12/31/2022

12/31/2021

12/31/2020

12/31/2019

Prior

Cost Basis

Total

(Dollars in thousands)

Commercial:

Pass

$

88,304

$

26,356

$

22,309

$

16,302

$

13,713

$

23,489

$

219,252

$

409,725

Special Mention

2,020

2,657

492

425

1,139

6,015

12,748

Substandard

231

876

521

307

3,795

749

6,479

Substandard-Nonaccrual

223

283

506

700

1,712

Total

90,555

29,889

23,545

16,302

14,728

28,929

226,716

430,664

CRE - Owner Occupied:

Pass

25,554

86,171

114,303

69,100

53,704

218,884

10,643

578,359

Special Mention

1,574

3,263

467

4,975

10,279

Substandard

1,107

6

1,113

Substandard-Nonaccrual

Total

25,554

87,745

117,566

69,567

54,811

223,865

10,643

589,751

CRE - Non-Owner Occupied:

Pass

176,351

237,904

267,063

28,534

102,839

376,429

2,355

1,191,475

Special Mention

8,959

8,959

Substandard

7,666

224

7,890

Substandard-Nonaccrual

Total

176,351

237,904

267,063

28,534

102,839

393,054

2,579

1,208,324

Land and construction:

Pass

39,051

62,958

33,165

12,184

1,884

149,242

Special Mention

4,235

4,235

Substandard

3,706

955

4,661

Substandard-Nonaccrual

Total

39,051

62,958

36,871

13,139

6,119

158,138

Home equity:

Pass

933

117,621

118,554

Special Mention

2,295

2,295

Substandard

3,538

3,538

Substandard-Nonaccrual

90

90

Total

933

123,544

124,477

Multifamily:

Pass

28,725

41,477

56,134

5,426

42,397

76,408

325

250,892

Special Mention

Substandard

2,237

2,237

Substandard-Nonaccrual

Total

28,725

41,477

56,134

5,426

42,397

78,645

325

253,129

Residential mortgage:

Pass

1,191

178,799

279,895

1,045

7,661

29,730

498,321

Special Mention

1,343

1,343

Substandard

1,430

196

1,626

Substandard-Nonaccrual

1,716

1,716

Total

1,191

183,288

279,895

1,045

7,661

29,926

503,006

Consumer and other:

Pass

1,380

6

2,081

14,992

18,459

Special Mention

67

67

Substandard

Substandard-Nonaccrual

Total

1,380

73

2,081

14,992

18,526

Total loans

$

361,427

$

644,641

$

781,147

$

134,013

$

228,555

$

757,433

$

378,799

$

3,286,015

Risk Grades:

Pass

$

359,176

$

635,045

$

772,875

$

132,591

$

222,198

$

727,954

$

365,188

$

3,215,027

Special Mention

2,020

5,574

3,822

467

4,660

15,073

8,310

39,926

Substandard

231

2,306

4,227

955

1,414

13,900

4,511

27,544

Substandard-Nonaccrual

1,716

223

283

506

790

3,518

Grand Total

$

361,427

$

644,641

$

781,147

$

134,013

$

228,555

$

757,433

$

378,799

$

3,286,015

Revolving

Loans

Term Loans Amortized Cost Basis by Originated Period as of December 31, 2022

Amortized

    

2022

2021

2020

2019

2018

Prior Periods

Cost Basis

Total

(Dollars in thousands)

Commercial:

Pass

$

102,969

$

36,752

$

24,406

$

19,272

$

12,089

$

21,127

$

293,546

$

510,161

Special Mention

3,408

1,060

192

1,123

6,031

5,551

17,365

Substandard

4

145

102

5,496

5,747

Substandard-Nonaccrual

279

330

33

642

Total

106,381

38,091

24,598

20,540

12,419

27,293

304,593

533,915

CRE - Owner Occupied:

Pass

92,689

116,266

75,007

59,887

58,180

194,584

8,758

605,371

Special Mention

2,033

867

1,120

4,410

8,430

Substandard

660

193

9

862

Substandard-Nonaccrual

Total

92,689

118,959

75,874

61,007

58,373

199,003

8,758

614,663

CRE - Non-Owner Occupied:

Pass

239,556

278,051

31,848

101,854

63,905

337,048

3,245

1,055,507

Special Mention

4,883

4,883

Substandard

5,978

5,978

Substandard-Nonaccrual

Total

239,556

278,051

31,848

101,854

63,905

347,909

3,245

1,066,368

Land and construction:

Pass

62,241

72,847

22,459

6,030

163,577

Special Mention

Substandard

Substandard-Nonaccrual

Total

62,241

72,847

22,459

6,030

163,577

Home equity:

Pass

44

117,950

117,994

Special Mention

2,346

2,346

Substandard

144

142

286

Substandard-Nonaccrual

98

98

Total

98

188

120,438

120,724

Multifamily:

Pass

42,111

69,824

4,871

42,412

15,356

66,380

180

241,134

Special Mention

657

771

2,320

3,748

Substandard

Substandard-Nonaccrual

Total

42,111

69,824

5,528

43,183

15,356

68,700

180

244,882

Residential mortgage:

Pass

191,907

296,270

1,068

6,788

2,724

33,290

532,047

Special Mention

1,058

1,482

2,387

4,927

Substandard

931

931

Substandard-Nonaccrual

Total

191,907

296,270

1,068

7,846

4,206

36,608

537,905

Consumer and other:

Pass

389

13

1,364

1,283

13,647

16,696

Special Mention

82

6

249

337

Substandard

Substandard-Nonaccrual

Total

389

95

6

1,364

1,283

13,896

17,033

Total loans

$

735,274

$

874,235

$

161,375

$

240,466

$

155,623

$

680,984

$

451,110

$

3,299,067

Risk Grades:

Pass

$

731,862

$

870,023

$

159,659

$

236,243

$

153,618

$

653,756

$

437,326

$

3,242,487

Special Mention

3,408

3,175

1,716

4,078

1,482

20,031

8,146

42,036

Substandard

4

660

145

193

7,164

5,638

13,804

Substandard-Nonaccrual

377

330

33

740

Grand Total

$

735,274

$

874,235

$

161,375

$

240,466

$

155,623

$

680,984

$

451,110

$

3,299,067

Gross Charge-offs by Originated Period for the Three Months Ended September 30, 2023

2018 and

Revolving

09/30/2023

12/31/2022

12/31/2021

12/31/2020

12/31/2019

Prior

Loans

Total

(Dollars in thousands)

Commercial

$

1

$

45

$

$

$

229

$

172

$

$

447

Real estate:

CRE - Owner Occupied

CRE - Non-Owner Occupied

Land and construction

Home equity

Multifamily

Residential mortgages

Consumer and other

Total

$

1

$

45

$

$

$

229

$

172

$

$

447

Gross Charge-offs by Originated Period for the Nine Months Ended September 30, 2023

2018 and

Revolving

09/30/2023

12/31/2022

12/31/2021

12/31/2020

12/31/2019

Prior

Loans

Total

(Dollars in thousands)

Commercial

$

1

$

49

$

$

$

278

$

277

$

$

605

Real estate:

CRE - Owner Occupied

CRE - Non-Owner Occupied

Land and construction

Home equity

246

246

Multifamily

Residential mortgages

Consumer and other

Total

$

1

$

49

$

$

$

278

$

277

$

246

$

851

Schedule of the amortized cost basis of the loans that were experiencing financial distress and modified

Three Months Ended September 30, 2023

Combination

Combination

Term

Term

Extension

Extension

Total

Interest

and

and

Class of

Principal

Payment

Term

Rate

Principal

Interest Rate

Financing

Forgiveness

Delay

Extension

Reduction

Forgiveness

Reduction

Receivables

(Dollars in thousands)

Commercial

$

$

25

$

$

$

$

0.01

%

Total

$

$

25

$

$

$

$

0.01

%

Nine Months Ended September 30, 2023

Combination

Combination

Term

Term

Extension

Extension

Total

Interest

and

and

Class of

Principal

Payment

Term

Rate

Principal

Interest Rate

Financing

Forgiveness

Delay

Extension

Reduction

Forgiveness

Reduction

Receivables

(Dollars in thousands)

Commercial

$

$

79

$

$

$

$

2

0.02

%

Total

$

$

79

$

$

$

$

2

0.02

%

Schedule of performance of loans that have been modified

    

Three Months Ended September 30, 2023

    

30 - 59

    

60 - 89

    

90 Days or

    

Days

Days

Greater

Total

Past Due

Past Due

Past Due

Past Due

(Dollars in thousands)

Commercial

$

$

$

$

Total

$

$

$

$

    

Nine Months Ended September 30, 2023

    

30 - 59

    

60 - 89

    

90 Days or

    

Days

Days

Greater

Total

Past Due

Past Due

Past Due

Past Due

(Dollars in thousands)

Commercial

$

37

$

$

$

37

Total

$

37

$

$

$

37

Schedule of financial effect of the loan modification presented of borrowers experiencing financial difficulty

Three Months Ended September 30, 2023

Weighted

Weighted

Average

Average

Interest

Term

Principal

Rate

Extension

Forgiveness

Reduction

(Months)

(Dollars in thousands)

Commercial

$

%

Total

$

%

Nine Months Ended September 30, 2023

Weighted

Weighted

Average

Average

Interest

Term

Principal

Rate

Extension

Forgiveness

Reduction

(Months)

(Dollars in thousands)

Commercial

$

3

0.25

%

14

Total

$

3

0.25

%

14