Loans and Allowance for Credit Losses (Tables)

3 Months Ended

Mar. 31, 2022

Receivables [Abstract]

Schedule of Loans Outstanding by Class of Financing Receivable

Loans outstanding as of March 31, 2022 and December 31, 2021, by class of financing receivable are as follows:

	March 31,		December 31,
	2022		2021
Commercial and industrial (1)	$	1,380,600	$	1,290,565
Construction	1,468,811		1,327,659
Residential real estate:
1-to-4 family mortgage	1,346,349		1,270,467
Residential line of credit	392,740		383,039
Multi-family mortgage	400,501		326,551
Commercial real estate:
Owner occupied	978,436		951,582
Non-owner occupied	1,706,546		1,730,165
Consumer and other	330,993		324,634
Gross loans	8,004,976		7,604,662
Less: Allowance for credit losses	(120,049)		(125,559)
Net loans	$	7,884,927	$	7,479,103

(1)Includes $2,062 and $3,990 of loans originated as part of the Paycheck Protection Program as of March 31, 2022 and December 31, 2021, respectively. PPP loans are federally guaranteed as part of the CARES Act, provided PPP loan recipients receive loan forgiveness under the SBA regulations. As such, there is minimal credit risk associated with these loans.

Schedule of Changes in Allowance for Credit Losses by Class of Financing Receivable

The following tables provide the changes in the allowance for credit losses by class of financing receivable for the three months ended March 31, 2022 and 2021:

	Commercial and industrial		Construction		1-to-4 family residential mortgage		Residential line of credit		Multi-family residential mortgage		Commercial real estate owner occupied		Commercial real estate non-owner occupied		Consumer and other		Total
Three Months Ended March 31, 2022
Beginning balance - December 31, 2021	$	15,751	$	28,576	$	19,104	$	5,903	$	6,976	$	12,593	$	25,768	$	10,888	$	125,559
Provision for credit losses	(4,006)		3,206		1,908		641		(578)		(4,187)		(4,478)		1,365		(6,129)
Recoveries of loans previously charged-off	958		—		12		1		—		10		—		217		1,198
Loans charged off	(4)		—		—		—		—		—		—		(575)		(579)
Ending balance - March 31, 2022	$	12,699	$	31,782	$	21,024	$	6,545	$	6,398	$	8,416	$	21,290	$	11,895	$	120,049

	Commercial and industrial		Construction		1-to-4 family residential mortgage		Residential line of credit		Multi-family residential mortgage		Commercial real estate owner occupied		Commercial real estate non-owner occupied		Consumer and other		Total
Three Months Ended March 31, 2021
Beginning balance - December 31, 2020	$	14,748	$	58,477	$	19,220	$	10,534	$	7,174	$	4,849	$	44,147	$	11,240	$	170,389
Provision for credit losses	43		(19,826)		461		(1,257)		4,483		(1,253)		6,032		(315)		(11,632)
Recoveries of loans previously charged-off	129		—		24		6		—		13		—		195		367
Loans charged off	(277)		(29)		(133)		(15)		—		—		—		(716)		(1,170)
Ending balance -    March 31, 2021	$	14,643	$	38,622	$	19,572	$	9,268	$	11,657	$	3,609	$	50,179	$	10,404	$	157,954

Schedule of Credit Quality of Loan Portfolio by Year of Origination

The following tables present the credit quality of our commercial loan portfolio by year of origination as of March 31, 2022 and December 31, 2021. Revolving loans are presented separately. Management considers the guidance in ASC 310-20 when determining whether a modification, extension, or renewal constitutes a current period origination. Generally, current period renewals of credit are reunderwritten at the point of renewal and considered current period originations for the purposes of the tables below.

As of March 31, 2022
	Commercial Term Loans
	Amortized Cost Basis by Origination Year
	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Total
Commercial and industrial
Pass	$	86,753	$	262,073	$	84,369	$	123,038	$	46,230	$	80,906	$	656,672	$	1,340,041
Special Mention	27		50		—		941		616		1,494		12,570		15,698
Classified	—		900		2,285		2,269		2,933		9,576		6,898		24,861
Total	86,780		263,023		86,654		126,248		49,779		91,976		676,140		1,380,600
Construction - Commercial
Pass	103,294		322,557		179,337		111,794		17,366		63,846		47,864		846,058
Special Mention	—		—		10		—		—		2,579		—		2,589
Classified	—		—		—		3,078		—		679		201		3,958
Total	103,294		322,557		179,347		114,872		17,366		67,104		48,065		852,605
Residential real estate:
Multi-family mortgage
Pass	53,167		190,584		32,964		64,201		5,124		42,130		11,104		399,274
Special Mention	—		—		—		—		—		—		—		—
Classified	—		—		—		—		—		1,227		—		1,227
Total	53,167		190,584		32,964		64,201		5,124		43,357		11,104		400,501
Commercial real estate:
Owner occupied
Pass	53,495		178,092		127,649		164,620		78,970		293,791		56,543		953,160
Special Mention	—		—		30		1,492		3,200		2,325		210		7,257
Classified	—		—		—		3,089		1,667		12,285		978		18,019
Total	53,495		178,092		127,679		169,201		83,837		308,401		57,731		978,436
Non-owner occupied
Pass	80,277		439,956		126,299		157,806		257,327		568,790		55,375		1,685,830
Special Mention	—		—		—		3,687		249		985		—		4,921
Classified	—		—		—		—		3,460		12,335		—		15,795
Total	80,277		439,956		126,299		161,493		261,036		582,110		55,375		1,706,546
Total commercial loans
Pass	376,986		1,393,262		550,618		621,459		405,017		1,049,463		827,558		5,224,363
Special Mention	27		50		40		6,120		4,065		7,383		12,780		30,465
Classified	—		900		2,285		8,436		8,060		36,102		8,077		63,860
Total commercial loans	$	377,013	$	1,394,212	$	552,943	$	636,015	$	417,142	$	1,092,948	$	848,415	$	5,318,688

As of December 31, 2021
	Commercial Term Loans
	Amortized Cost Basis by Origination Year
	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Total
Commercial and industrial
Pass	$	273,232	$	95,279	$	140,938	$	52,162	$	33,997	$	57,020	$	596,667	$	1,249,295
Special Mention	79		9		949		632		3		1,519		12,367		15,558
Classified	918		2,391		2,376		3,089		3,370		6,425		7,143		25,712
Total	274,229		97,679		144,263		55,883		37,370		64,964		616,177		1,290,565
Construction - Commercial
Pass	335,758		164,428		112,985		18,374		14,965		64,516		43,748		754,774
Special Mention	—		11		—		—		1,208		1,384		—		2,603
Classified	—		—		2,922		2,882		3		737		200		6,744
Total	335,758		164,439		115,907		21,256		16,176		66,637		43,948		764,121
Residential real estate:
Multi-family mortgage
Pass	166,576		32,242		64,345		7,124		5,602		38,526		10,891		325,306
Special Mention	—		—		—		—		—		—		—		—
Classified	—		—		—		—		—		1,245		—		1,245
Total	166,576		32,242		64,345		7,124		5,602		39,771		10,891		326,551
Commercial real estate:
Owner occupied
Pass	170,773		131,471		174,257		83,698		69,939		236,998		57,123		924,259
Special Mention	—		—		1,502		3,541		885		2,555		213		8,696
Classified	—		—		3,102		768		3,295		9,616		1,846		18,627
Total	170,773		131,471		178,861		88,007		74,119		249,169		59,182		951,582
Non-owner occupied
Pass	462,478		154,048		165,917		264,855		170,602		414,859		46,541		1,679,300
Special Mention	—		—		3,747		3,388		—		969		—		8,104
Classified	—		—		1,898		23,849		1,506		15,508		—		42,761
Total	462,478		154,048		171,562		292,092		172,108		431,336		46,541		1,730,165
Total commercial loans
Pass	1,408,817		577,468		658,442		426,213		295,105		811,919		754,970		4,932,934
Special Mention	79		20		6,198		7,561		2,096		6,427		12,580		34,961
Classified	918		2,391		10,298		30,588		8,174		33,531		9,189		95,089
Total commercial loans	$	1,409,814	$	579,879	$	674,938	$	464,362	$	305,375	$	851,877	$	776,739	$	5,062,984

The following tables present the credit quality by classification (performing or nonperforming) of our consumer loan portfolio by year of origination as of March 31, 2022 and December 31, 2021. Revolving loans are presented separately. Management considers the guidance in ASC 310-20 when determining whether a modification, extension, or renewal constitutes a current period origination. Generally, current period renewals of credit are reunderwritten at the point of renewal and considered current period originations for the purposes of the tables below.

As of March 31, 2022
	Consumer Term Loans
	Amortized Cost Basis by Origination Year
	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Total
Construction - Consumer
Performing	$	63,687	$	345,094	$	87,761	$	18,312	$	5,815	$	4,328	$	91,209	$	616,206
Nonperforming	—		—		—		—		—		—		—		—
Total	63,687		345,094		87,761		18,312		5,815		4,328		91,209		616,206
Residential real estate:
1-to-4 family mortgage
Performing	161,778		500,544		184,028		113,736		89,201		282,039		—		1,331,326
Nonperforming	—		3,240		2,970		1,144		2,577		5,092		—		15,023
Total	161,778		503,784		186,998		114,880		91,778		287,131		—		1,346,349
Residential line of credit
Performing	—		—		—		—		—		—		391,163		391,163
Nonperforming	—		—		—		—		—		—		1,577		1,577
Total	—		—		—		—		—		—		392,740		392,740
Consumer and other
Performing	33,831		72,033		51,086		36,589		31,037		92,155		9,004		325,735
Nonperforming	—		330		442		518		1,541		2,427		—		5,258
Total	33,831		72,363		51,528		37,107		32,578		94,582		9,004		330,993
Total consumer loans
Performing	259,296		917,671		322,875		168,637		126,053		378,522		491,376		2,664,430
Nonperforming	—		3,570		3,412		1,662		4,118		7,519		1,577		21,858
Total consumer loans	$	259,296	$	921,241	$	326,287	$	170,299	$	130,171	$	386,041	$	492,953	$	2,686,288

As of December 31, 2021
	Consumer Term Loans
	Amortized Cost Basis by Origination Year
	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Total
Construction - Consumer
Performing	$	341,562	$	116,352	$	22,783	$	5,542	$	348	$	3,302	$	73,428	$	563,317
Nonperforming	—		221		—		—		—		—		—		221
Total	341,562		116,573		22,783		5,542		348		3,302		73,428		563,538
Residential real estate:
1-to-4 family mortgage
Performing	521,533		204,690		121,775		100,164		109,087		199,262		—		1,256,511
Nonperforming	1,232		3,734		977		2,429		1,765		3,819		—		13,956
Total	522,765		208,424		122,752		102,593		110,852		203,081		—		1,270,467
Residential line of credit
Performing	—		—		—		—		—		—		381,303		381,303
Nonperforming	—		—		—		—		—		—		1,736		1,736
Total	—		—		—		—		—		—		383,039		383,039
Consumer and other
Performing	82,910		55,123		38,281		32,893		21,856		74,248		14,478		319,789
Nonperforming	199		345		545		1,352		861		1,496		47		4,845
Total	83,109		55,468		38,826		34,245		22,717		75,744		14,525		324,634
Total consumer loans
Performing	946,005		376,165		182,839		138,599		131,291		276,812		469,209		2,520,920
Nonperforming	1,431		4,300		1,522		3,781		2,626		5,315		1,783		20,758
Total consumer loans	$	947,436	$	380,465	$	184,361	$	142,380	$	133,917	$	282,127	$	470,992	$	2,541,678

Schedule of Analysis of Aging by Class of Financing Receivable

The following tables represent an analysis of the aging by class of financing receivable as of March 31, 2022 and December 31, 2021:

March 31, 2022	30-89 days past due		90 days or  more and accruing interest		Non-accrual loans		Loans current on payments and accruing interest		Total
Commercial and industrial	$	1,543	$	58	$	3,882	$	1,375,117	$	1,380,600
Construction	2,622		—		679		1,465,510		1,468,811
Residential real estate:
1-to-4 family mortgage	13,508		11,724		3,299		1,317,818		1,346,349
Residential line of credit	536		—		1,577		390,627		392,740
Multi-family mortgage	—		—		48		400,453		400,501
Commercial real estate:
Owner occupied	415		—		6,989		971,032		978,436
Non-owner occupied	986		—		7,185		1,698,375		1,706,546
Consumer and other	4,305		1,091		4,167		321,430		330,993
Total	$	23,915	$	12,873	$	27,826	$	7,940,362	$	8,004,976

December 31, 2021	30-89 days past due		90 days or  more and accruing interest		Non-accrual loans		Loans current on payments and accruing interest		Total
Commercial and industrial	$	1,030	$	63	$	1,520	$	1,287,952	$	1,290,565
Construction	4,852		718		3,622		1,318,467		1,327,659
Residential real estate:
1-to-4 family mortgage	11,007		9,363		4,593		1,245,504		1,270,467
Residential line of credit	319		—		1,736		380,984		383,039
Multi-family mortgage	—		—		49		326,502		326,551
Commercial real estate:
Owner occupied	1,417		—		6,710		943,455		951,582
Non-owner occupied	427		—		14,084		1,715,654		1,730,165
Consumer and other	7,398		1,591		3,254		312,391		324,634
Total	$	26,450	$	11,735	$	35,568	$	7,530,909	$	7,604,662

Schedule of Amortized Cost, Related Allowance and Interest Income of Non-accrual Loans

The following tables provide the amortized cost basis of loans on non-accrual status, as well as any related allowance as of March 31, 2022 and December 31, 2021 by class of financing receivable.

March 31, 2022	Non-accrual with no related allowance		Non-accrual with related allowance		Related allowance
Commercial and industrial	$	1,420	$	2,462	$	1,781
Construction	—		679		85
Residential real estate:
1-to-4 family mortgage	130		3,169		49
Residential line of credit	1,051		526		7
Multi-family mortgage	—		48		2
Commercial real estate:
Owner occupied	4,346		2,643		84
Non-owner occupied	7,006		179		22
Consumer and other	—		4,167		211
Total	$	13,953	$	13,873	$	2,241

December 31, 2021	Non-accrual with no related allowance		Non-accrual with related allowance		Related allowance
Commercial and industrial	$	1,085	$	435	$	6
Construction	2,882		740		99
Residential real estate:
1-to-4 family mortgage	378		4,215		60
Residential line of credit	797		939		11
Multi-family mortgage	—		49		2
Commercial real estate:
Owner occupied	5,346		1,364		206
Non-owner occupied	13,898		186		7
Consumer and other	—		3,254		164
Total	$	24,386	$	11,182	$	555

The following presents interest income recognized on nonaccrual loans for the three months ended March 31, 2022 and 2021:

	Three Months Ended March 31,
	2022		2021
Commercial and industrial	$	54	$	114
Construction	19		14
Residential real estate:
1-to-4 family mortgage	52		18
Residential line of credit	40		18
Multi-family mortgage	—		1
Commercial real estate:
Owner occupied	25		131
Non-owner occupied	70		89
Consumer and other	15		—
Total	$	275	$	385

Schedule of Financial Effect of TDRs

The following tables present the financial effect of TDRs recorded during the periods indicated:

Three Months Ended March 31, 2022	Number of loans	Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment		Charge offs and specific reserves
Residential real estate:
1-to-4 family mortgage	1	$	80	$	80	$	—
Consumer and other	1	22		22		—
Total	2	$	102	$	102	$	—

Three Months Ended March 31, 2021	Number of loans	Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment		Charge offs and specific reserves
Commercial and industrial	1	$	107	$	107	$	—
Commercial real estate:
Non-owner occupied	1	11,997		11,997		—
Total	2	$	12,104	$	12,104	$	—

Schedule of Individually Assessed Allowance for Credit Losses for Collateral Dependent Loans

For loans for which the repayment (based on the Company's assessment) is expected to be provided substantially through the operation or sale of collateral and the borrower is experiencing financial difficulty, the following tables present the loans and the corresponding individually assessed allowance for credit losses by class of financing receivable. Significant changes in individually assessed reserves are due to changes in the valuation of the underlying collateral in addition to changes in accrual and past due status.

	March 31, 2022
	Type of Collateral
	Real Estate		Financial Assets and Equipment		Total		Individually assessed allowance for credit loss
Commercial and industrial	$	689	$	3,324	$	4,013	$	1,776
Construction	685		—		685		84
Residential real estate:
1-to-4 family mortgage	344		—		344		—
Residential line of credit	1,367		—		1,367		5
Commercial real estate:
Owner occupied	8,470		—		8,470		80
Non-owner occupied	7,006		—		7,006		—
Consumer and other	25		—		25		1
Total	$	18,586	$	3,324	$	21,910	$	1,946

	December 31, 2021
	Type of Collateral
	Real Estate		Financial Assets and Equipment		Total		Individually assessed allowance for credit loss
Commercial and industrial	$	799	$	1,090	$	1,889	$	—
Construction	3,580		—		3,580		92
Residential real estate:
1-to-4 family mortgage	338		—		338		—
Residential line of credit	1,400		—		1,400		10
Commercial real estate:
Owner occupied	8,117		71		8,188		200
Non-owner occupied	13,899		—		13,899		—
Consumer and other	25		—		25		1
Total	$	28,158	$	1,161	$	29,319	$	303