10-Q

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

___________________

FORM 10-Q

___________________

☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

for the quarterly period ended: June 30, 2021

☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

for the transition period from                to              

Commission File Number: 000-10661

___________________

(Exact Name of Registrant as Specified in Its Charter)

___________________

CA	94-2792841
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification Number)

63 Constitution Drive

Chico, California 95973

(Address of Principal Executive Offices)(Zip Code)

(530) 898-0300

(Registrant’s Telephone Number, Including Area Code)

___________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	TCBK	The NASDAQ Stock Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “accelerated filer”, “large accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

☒	Large accelerated filer	☐	Accelerated filer
☐	Non-accelerated filer	☐	Smaller reporting company
☐	Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

Indicate the number of shares outstanding for each of the issuer’s classes of common stock, as of the latest practical date:

Common stock, no par value: 29,711,934 shares outstanding as of August 6, 2021.

Table of Contents

TriCo Bancshares

FORM 10-Q

TABLE OF CONTENTS

	Page
PART I – FINANCIAL INFORMATION	2
Item 1 – Financial Statements (Unaudited)	2
Item 2 – Management’s Discussion and Analysis of Financial Condition and Results of Operations	39
Item 3 – Quantitative and Qualitative Disclosures about Market Risk	60
Item 4 – Controls and Procedures	61
PART II – OTHER INFORMATION	62
Item 1 – Legal Proceedings	62
Item 1A – Risk Factors	62
Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds	63
Item 6 – Exhibits	63
Signatures	64

Table of Contents

PART I – FINANCIAL INFORMATION

Item 1.    Financial Statements (unaudited)

TRICO BANCSHARES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share data; unaudited)

	June 30, 2021		December 31, 2020
Assets:
Cash and due from banks	$	86,052	$	77,253
Cash at Federal Reserve and other banks	553,688		592,298
Cash and cash equivalents	639,740		669,551
Investment securities:
Marketable equity securities	2,979		3,025
Available for sale debt securities, net of allowance for credit losses of $—	1,847,568		1,414,264
Held to maturity debt securities, net of allowance for credit losses of $—	235,778		284,563
Restricted equity securities	17,250		17,250
Loans held for sale	5,723		6,268
Loans	4,944,894		4,763,127
Allowance for credit losses	(86,062)		(91,847)
Total loans, net	4,858,832		4,671,280
Premises and equipment, net	79,178		83,731
Cash value of life insurance	120,287		118,870
Accrued interest receivable	18,923		20,004
Goodwill	220,872		220,872
Other intangible assets, net	14,971		17,833
Operating leases, right-of-use	26,365		27,846
Other assets	81,899		84,172
Total assets	$	8,170,365	$	7,639,529
Liabilities and Shareholders’ Equity:
Liabilities:
Deposits:
Noninterest-bearing demand	$	2,843,783	$	2,581,517
Interest-bearing	4,148,270		3,924,417
Total deposits	6,992,053		6,505,934
Accrued interest payable	1,026		1,362
Operating lease liability	26,707		27,973
Other liabilities	85,388		94,597
Other borrowings	40,559		26,914
Junior subordinated debt	57,852		57,635
Total liabilities	7,203,585		6,714,415
Commitments and contingencies (Note 7)
Shareholders’ equity:
Preferred stock, no par value: 1,000,000 shares authorized, zero issued and outstanding at June 30, 2021 and December 31, 2020	—		—
Common stock, no par value: 50,000,000 shares authorized; 29,716,294 and 29,727,214 issued and outstanding at June 30, 2021 and December 31, 2020, respectively	531,038		530,835
Retained earnings	427,575		381,999
Accumulated other comprehensive income, net of tax	8,167		12,280
Total shareholders’ equity	966,780		925,114
Total liabilities and shareholders’ equity	$	8,170,365	$	7,639,529

See accompanying notes to unaudited condensed consolidated financial statements.

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TRICO BANCSHARES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share data; unaudited)

	Three months ended June 30,				Six months ended June 30,
	2021		2020		2021		2020
Interest and dividend income:
Loans, including fees	$	60,304	$	58,409	$	120,740	$	114,667
Investments:
Taxable securities	6,934		7,466		13,111		15,677
Tax exempt securities	851		952		1,774		1,856
Dividends	255		223		472		584
Interest bearing cash at Federal Reserve and other banks	135		98		298		881
Total interest and dividend income	68,479		67,148		136,395		133,665
Interest expense:
Deposits	828		1,813		1,765		4,364
Other borrowings	5		4		9		9
Junior subordinated debt	563		672		1,098		1,441
Total interest expense	1,396		2,489		2,872		5,814
Net interest income	67,083		64,659		133,523		127,851
Provision for (reversal of) credit losses	(260)		22,244		(6,320)		30,313
Net interest income after credit loss provision (reversal)	67,343		42,415		139,843		97,538
Non-interest income:
Service charges and fees	10,930		8,168		21,406		17,294
Gain on sale of loans	2,847		1,736		6,094		2,627
Gain on sale of investment securities	—		—		—		—
Asset management and commission income	947		661		1,781		1,577
Increase in cash value of life insurance	745		710		1,418		1,430
Other	488		382		1,368		549
Total non-interest income	15,957		11,657		32,067		23,477
Non-interest expense:
Salaries and related benefits	27,081		27,055		52,411		54,327
Other	17,090		18,495		33,378		35,973
Total non-interest expense	44,171		45,550		85,789		90,300
Income before provision for income taxes	39,129		8,522		86,121		30,715
Provision for income taxes	10,767		1,092		24,110		7,164
Net income	$	28,362	$	7,430	$	62,011	$	23,551
Per share data:
Basic earnings per share	$	0.95	$	0.25	$	2.09	$	0.78
Diluted earnings per share	$	0.95	$	0.25	$	2.07	$	0.78
Dividends per share	$	0.25	$	0.22	$	0.50	$	0.44

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(In thousands; unaudited)

	Three months ended June 30,				Six months ended June 30,
	2021		2020		2021		2020
Net income	$	28,362	$	7,430	$	62,011	$	23,551
Other comprehensive income (loss), net of tax:
Unrealized gains (losses) on available for sale securities arising during the period	5,206		24,625		(3,484)		3,803
Change in minimum pension liability	—		1,126		—		2,038
Change in joint beneficiary agreements	—		—		(629)		—
Other comprehensive income (loss)	5,206		25,751		(4,113)		5,841
Comprehensive income	$	33,568	$	33,181	$	57,898	$	29,392

See accompanying notes to unaudited condensed consolidated financial statements.

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TRICO BANCSHARES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

(In thousands, except share and per share data; unaudited)

	Shares of Common Stock	Common Stock		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total
Balance at March 31, 2020	29,973,516	$	534,623	$	356,935	$	(25,132)	$	866,426
Net income				7,430				7,430
Other comprehensive income						25,751		25,751
Stock options exercised	8,000	140						140
RSU vesting		338						338
PSU vesting		154						154
RSUs released	28,727							—
PSUs released	20,265							—
Repurchase of common stock	(271,299)	(4,833)		(3,176)				(8,009)
Dividends paid ($0.22 per share)				(6,544)				(6,544)
Three months ended June 30, 2020	29,759,209	$	530,422	$	354,645	$	619	$	885,686
Balance at March 31, 2021	29,727,122	$	531,367	$	408,211	$	2,961	$	942,539
Net income				28,362				28,362
Other comprehensive income						5,206		5,206
Stock options exercised	1,675	28						28
RSU vesting		405						405
PSU vesting		221						221
RSUs released	42,511							—
PSUs released	—							—
Repurchase of common stock	(55,014)	(983)		(1,568)				(2,551)
Dividends paid ($0.25 per share)				(7,430)				(7,430)
Three months ended June 30, 2021	29,716,294	$	531,038	$	427,575	$	8,167	$	966,780

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TRICO BANCSHARES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (continued)

(In thousands, except share and per share data; unaudited)

	Shares of Common Stock	Common Stock		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total
Balance at January 1, 2020	30,523,824	$	543,998	$	367,794	$	(5,222)	$	906,570
Cumulative change from adoption of ASU 2016-13				(12,983)				(12,983)
Balance at January 1, 2020 (as adjusted for change in accounting principle)	30,523,824	543,998		354,811		(5,222)		893,587
Net income				23,551				23,551
Other comprehensive income						5,841		5,841
Stock options exercised	16,000	288						288
RSU vesting		635						635
PSU vesting		296						296
RSUs released	29,089							—
PSUs released	20,265							—
Repurchase of common stock	(829,969)	(14,795)		(10,509)				(25,304)
Dividends paid ($0.44 per share)				(13,208)				(13,208)
Six months ended June 30, 2020	29,759,209	$	530,422	$	354,645	$	619	$	885,686
Balance at January 1, 2021	29,727,214	$	530,835	$	381,999	$	12,280	$	925,114
Net income				62,011				62,011
Other comprehensive loss						(4,113)		(4,113)
Stock options exercised	1,675	28						28
RSU vesting		757						757
PSU vesting		406						406
RSUs released	42,712							—
PSUs released	—							—
Repurchase of common stock	(55,307)	(988)		(1,573)				(2,561)
Dividends paid ($0.50 per share)				(14,862)				(14,862)
Six months ended June 30, 2021	29,716,294	$	531,038	$	427,575	$	8,167	$	966,780

See accompanying notes to unaudited condensed consolidated financial statements.

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TRICO BANCSHARES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands; unaudited)

	For the six months ended June 30,
	2021		2020
Operating activities:
Net income	$	62,011	$	23,551
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of premises and equipment, and amortization	3,357		3,193
Amortization of intangible assets	2,862		2,862
Provision for (reversal of) credit losses on loans	(6,385)		30,089
Amortization of investment securities premium, net	2,855		1,054
Gain on sale of investment securities	—		—
Originations of loans for resale	(129,684)		(84,872)
Proceeds from sale of loans originated for resale	135,353		83,867
Gain on sale of loans	(6,094)		(2,627)
Change in market value of mortgage servicing rights	459		2,494
Provision for losses on foreclosed assets	9		106
Gain on transfer of loans to foreclosed assets	(20)		—
Gain on sale of foreclosed assets	(46)		(57)
Operating lease expense payments	(2,430)		(2,480)
(Gain) loss on disposal of fixed assets	(426)		15
Increase in cash value of life insurance	(1,418)		(1,430)
Loss (gain) on marketable equity securities	45		(72)
Equity compensation vesting expense	1,163		931
Change in:
Interest receivable	1,081		(1,440)
Interest payable	(336)		(673)
Amortization of operating lease ROUA	2,645		2,720
Other assets and liabilities, net	(6,195)		6,474
Net cash from operating activities	58,806		63,705
Investing activities:
Proceeds from maturities of securities available for sale	180,046		60,637
Proceeds from maturities of securities held to maturity	48,269		37,905
Purchases of securities available for sale	(620,634)		(101,899)
Loan origination and principal collections, net	(79,803)		(493,437)
Loans purchased	(101,466)		—
Proceeds from sale of other real estate owned	756		570
Proceeds from sale of premises and equipment	2,700		—
Purchases of premises and equipment	(854)		(1,266)
Net cash used by investing activities	(570,986)		(497,490)
Financing activities:
Net change in deposits	486,119		881,264
Net change in other borrowings	13,645		20,090
Repurchase of common stock, net of option exercises	(2,561)		(25,164)
Dividends paid	(14,862)		(13,208)
Exercise of stock options	28		148
Net cash from financing activities	482,369		863,130
Net change in cash and cash equivalents	(29,811)		429,345
Cash and cash equivalents, beginning of period	669,551		276,507
Cash and cash equivalents, end of period	$	639,740	$	705,852
Supplemental disclosure of noncash activities:
Unrealized (loss) gain on securities available for sale	$	(4,945)	$	5,398
Market value of shares tendered in-lieu of cash to pay for exercise of options and/or related taxes	451		494
Obligations incurred in conjunction with leased assets	1,308		4,068
Loans transferred to foreclosed assets	102		—
Supplemental disclosure of cash flow activity:
Cash paid for interest expense	3,208		6,487
Cash paid for income taxes	33,300		—

See accompanying notes to unaudited condensed consolidated financial statements.

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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 1 - Summary of Significant Accounting Policies

Description of Business and Basis of Presentation

TriCo Bancshares (the “Company” or “we”) is a California corporation organized to act as a bank holding company for Tri Counties Bank (the “Bank”). The Company and the Bank are headquartered in Chico, California. The Bank is a California-chartered bank that is engaged in the general commercial banking business in 28 California counties. The Company has five capital subsidiary business trusts (collectively, the “Capital Trusts”) that issued trust preferred securities, including two organized by the Company and three acquired with the acquisition of North Valley Bancorp.

The consolidated financial statements are prepared in accordance with accounting policies generally accepted in the United States of America and general practices in the banking industry. All adjustments necessary for a fair presentation of these consolidated financial statements have been included and are of a normal and recurring nature. The financial statements include the accounts of the Company. All inter-company accounts and transactions have been eliminated in consolidation. For financial reporting purposes, the Company’s investments in the Capital Trusts of $1,737,000 are accounted for under the equity method and, accordingly, are not consolidated and are included in other assets on the consolidated balance sheet. The subordinated debentures issued and guaranteed by the Company and held by the Capital Trusts are reflected as debt on the Company’s consolidated balance sheet.

Use of Estimates in the Preparation of Financial Statements

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 (the “2020 Annual Report”). The Company believes that the disclosures made are adequate to make the information not misleading.

Segment and Significant Group Concentration of Credit Risk

The Company grants agribusiness, commercial, consumer, and residential loans to customers located throughout northern and central California. The Company has a diversified loan portfolio within the business segments located in this geographical area. The Company currently classifies all its operation into one business segment that it denotes as community banking.

Geographical Descriptions

For the purpose of describing the geographical location of the Company’s operations, the Company has defined northern California as that area of California north of, and including, Stockton to the east and San Jose to the west; central California as that area of the state south of Stockton and San Jose, to and including, Bakersfield to the east and San Luis Obispo to the west; and southern California as that area of the state south of Bakersfield and San Luis Obispo.

Reclassification

Some items in the prior year consolidated financial statements were reclassified to conform to the current presentation. Reclassifications had no effect on prior year net income or shareholders’ equity.

Cash and Cash Equivalents

Net cash flows are reported for loan and deposit transactions and other borrowings. For purposes of the consolidated statement of cash flows, cash, due from banks with original maturities less than 90 days, interest-earning deposits in other banks, and Federal funds sold are considered to be cash equivalents.

Allowance for Credit Losses - Securities

The Company measures expected credit losses on held-to-maturity debt securities on a collective basis by major security type, then further

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disaggregated by sector and bond rating. Accrued interest receivable on held-to-maturity (HTM) debt securities totaled was considered insignificant at June 30, 2021 and is therefore excluded from the estimate of credit losses. The estimate of expected credit losses considers historical credit loss information that is adjusted for current condition and reasonable and supportable forecasts based on current and expected changes in credit ratings and default rates. Based on the implied guarantees of the U. S. Government or its agencies related to certain of these investment securities, and the absence of any historical or expected losses, substantially all qualify for a zero loss assumption. Management has separately evaluated its HTM investment securities from obligations of state and political subdivisions utilizing the historical loss data represented by similar securities over a period of time spanning nearly 50 years. As a result of this evaluation, management determined that the expected credit losses associated with these securities is not significant for financial reporting purposes and therefore, no allowance for credit losses has been recognized.

The Company evaluates available for sale debt securities in an unrealized loss position to determine whether the decline in the fair value below the amortized cost basis (impairment) is due to credit-related factors or noncredit-related factors. Any impairment that is not credit related is recognized in other comprehensive income, net of applicable taxes. Credit-related impairment is recognized as an allowance for credit losses on the balance sheet, limited to the amount by which the amortized cost basis exceeds the fair value, with a corresponding adjustment to earnings. Both the allowance for credit losses and the adjustment to net income may be reversed if conditions change. However, if the Company intends to sell an impaired available for sale debt security or more likely than not will be required to sell such a security before recovering its amortized cost basis, the entire impairment amount is recognized in earnings with a corresponding adjustment to the security's amortized cost basis. In evaluating available for sale debt securities in unrealized loss positions for impairment and the criteria regarding its intent or requirement to sell such securities, the Company considers the extent to which fair value is less than amortized cost, whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuers' financial condition, among other factors. Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the ACL when management believes the uncollectability of an available for sale debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met. No security credit losses were recognized during the six month periods ended June 30, 2021 and 2020, respectively.

Loans

Loans that management has the intent and ability to hold until maturity or payoff are reported at principle amount outstanding, net of deferred loan fees and costs. Loans are placed in nonaccrual status when reasonable doubt exists as to the full, timely collection of interest or principal, or a loan becomes contractually past due by 90 days or more with respect to interest or principal and is not well secured and in the process of collection. When a loan is placed on nonaccrual status, all interest previously accrued but not collected is reversed against interest income. Income on such loans is then recognized only to the extent that cash is received and where the future collection of principal is considered probable. Interest accruals are resumed on such loans only when they are brought fully current with respect to interest and principal and when, in the judgment of Management, the loan is estimated to be fully collectible as to both principal and interest. Accrued interest receivable is not included in the calculation of the allowance for credit losses.

Allowance for Credit Losses - Loans

The allowance for credit losses (ACL) is a valuation account that is deducted from the loan's amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when management believes the recorded loan balance is confirmed as uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Regardless of the determination that a charge-off is appropriate for financial accounting purposes, the Company manages its loan portfolio by continually monitoring, where possible, a borrower's ability to pay through the collection of financial information, delinquency status, borrower discussion and the encouragement to repay in accordance with the original contract or modified terms, if appropriate.

Management estimates the allowance balance using relevant information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. The allowance for credit losses is measured on a collective (pool) basis when similar risk characteristics exist. Historical credit loss experience provides the basis for the estimation of expected credit losses, which captures loan balances as of a point in time to form a cohort, then tracks the respective losses generated by that cohort of loans over the remaining life. The Company identified and accumulated loan cohort historical loss data beginning with the fourth quarter of 2008 and through the current period. In situations where the Company's actual loss history was not statistically relevant, the loss history of peers, defined as financial institutions with assets greater than three billion and less than ten billion, were utilized to create a minimum loss rate. Adjustments to historical loss information are made for differences in relevant current loan-specific risk characteristics, such as historical timing of losses relative to the loan origination. In its loss forecasting framework, the Company incorporates forward-looking information through the use of macroeconomic scenarios applied over the forecasted life of the assets. These macroeconomic scenarios incorporate variables that have historically been key drivers of increases and decreases in credit losses. These variables include, but are not limited to changes in environmental conditions, such as California unemployment rates, household debt levels and U.S. gross domestic product.

A loan is considered to be collateral dependent when repayment is expected to be provided substantially through the operation or sale of the collateral. The ACL on collateral dependent loans is measured using the fair value of the underlying collateral, adjusted for costs to

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sell when applicable, less the amortized cost basis of the financial asset. If the value of underlying collateral is determined to be less than the recorded amount of the loan, a charge-off will be taken. Loans for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, is considered to be a troubled debt restructuring (TDR). The ACL on a TDR is measured using the same method as all other portfolio loans, except when the value of a concession cannot be measured using a method other than the discounted cash flow method. When the value of a concession is measured using the discounted cash flow method, the ACL is determined by discounting the expected future cash flows at the original interest rate of the loan.

The Company has identified the following portfolio segments to evaluate and measure the allowance for credit loss:

Commercial real estate:

Commercial real estate - Non-owner occupied: These commercial properties typically consist of buildings which are leased to others for their use and rely on rents as the primary source of repayment. Property types are predominantly office, retail, or light industrial but the portfolio also has some special use properties. As such, the risk of loss associated with these properties is primarily driven by general economic changes or changes in regional economies and the impact of such on a tenant’s ability to pay. Ultimately this can affect occupancy, rental rates, or both. Additional risk of loss can come from new construction resulting in oversupply, the costs to hold or operate the property, or changes in interest rates. The terms on these loans at origination typically have maturities from five to ten years with amortization periods from fifteen to thirty years.

Commercial real estate - Owner occupied: These credits are primarily susceptible to changes in the financial condition of the business operated by the property owner. This may be driven by changes in, among other things, industry challenges, factors unique to the operating geography of the borrower, change in the individual fortunes of the business owner, general economic conditions and changes in business cycles. When default is driven by issues related specifically to the business owner, collateral values tend to provide better repayment support and may result in little or no loss. Alternatively, when default is driven more by general economic conditions, the underlying collateral may have devalued more and thus result in larger losses in the event of default. The terms on these loans at origination typically have maturities from five to ten years with amortization periods from fifteen to thirty years.

Multifamily: These commercial properties are generally comprised of more than four rentable units, such as apartment buildings, with each unit intended to be occupied as the primary residence for one or more persons. Multifamily properties are also subject to changes in general or regional economic conditions, such as unemployment, ultimately resulting in increased vacancy rates or reduced rents or both. In addition, new construction can create an oversupply condition and market competition resulting in increased vacancy, reduced market rents, or both. Due to the nature of their use and the greater likelihood of tenant turnover, the management of these properties is more intensive and therefore is more critical to the preclusion of loss.

Farmland: While the Company has few loans that were originated for the purpose of the acquisition of these commercial properties, loans secured by farmland represent unique risks that are associated with the operation of an agricultural businesses. The valuation of farmland can vary greatly over time based on the property's access to resources including but not limited to water, crop prices, foreign exchange rates, government regulation or restrictions, and the nature of ongoing capital investment needed to maintain the quality of the property. Loans secured by farmland typically represent less risk to the Company than other agriculture loans as the real estate typically provides greater support in the event of default or need for longer term repayment.

Consumer loans:

SFR 1-4 1st DT Liens: The most significant drivers of potential loss within the Company's residential real estate portfolio relate general, regional, or individual changes in economic conditions and their effect on employment and borrowers cash flow. Risk in this portfolio is best measured by changes in borrower credit score and loan-to-value. Loss estimates are based on the general movement in credit score, economic outlook and its effects on employment and the value of homes and the Bank’s historical loss experience adjusted to reflect the economic outlook and the unemployment rate.

SFR HELOCs and Junior Liens: Similar to residential real estate term loans, HELOCs and junior liens performance is also primarily driven by borrower cash flows based on employment status. However, HELOCs carry additional risks associated with the fact that most of these loans are secured by a deed of trust in a position that is junior to the primary lien holder. Furthermore, the risk that as the borrower's financial strength deteriorates, the outstanding balance on these credit lines may increase as they may only be canceled by the Company if certain limited criteria are met. In addition to the allowance for credit losses maintained as a percent of the outstanding loan balance, the Company maintains additional reserves for the unfunded portion of the HELOC.

Other: The majority of consumer loans are secured by automobiles, with the remainder primarily unsecured revolving debt (credit cards). These loans are susceptible to three primary risks; non-payment due to income loss, over-extension of credit and, when the borrower is unable to pay, shortfall in collateral value, if any. Typically non-payment is due to loss of job and will follow general economic trends in the marketplace driven primarily by rises in the unemployment rate. Loss of collateral value can be due to market demand shifts, damage to collateral itself or a combination of those factors. Credit card loans are unsecured and while collection efforts are pursued in the event of default, there is typically limited opportunity for recovery. Loss estimates are based on the general movement in credit score, economic outlook and its effects on employment and the Bank’s historical loss experience adjusted to reflect the economic outlook and the unemployment rate.

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Commercial and Industrial:

Repayment of these loans is primarily based on the cash flow of the borrower, and secondarily on the underlying collateral provided by the borrower. A borrower's cash flow may be unpredictable, and collateral securing these loans may fluctuate in value. Most often, collateral includes accounts receivable, inventory, or equipment. Collateral securing these loans may depreciate over time, may be difficult to appraise, may be illiquid and may fluctuate in value based on the success of the business. Actual and forecast changes in gross domestic product are believed to be corollary to losses associated with these credits.

Construction:

While secured by real estate, construction loans represent a greater level of risk than term real estate loans due to the nature of the additional risks associated with the not only the completion of construction within an estimated time period and budget, but also the need to either sell the building or reach a level of stabilized occupancy sufficient to generate the cash flows necessary to support debt service and operating costs. The Company seeks to mitigate the additional risks associated with construction lending by requiring borrowers to comply with lower loan to value ratios and additional covenants as well as strong tertiary support of guarantors. The loss forecasting model applies the historical rate of loss for similar loans over the expected life of the asset as adjusted for macroeconomic factors.

Agriculture Production:

Repayment of agricultural loans is dependent upon successful operation of the agricultural business, which is greatly impacted by factors outside the control of the borrower. These factors include adverse weather conditions, including access to water, that may impact crop yields, loss of livestock due to disease or other factors, declines in market prices for agriculture products, changes in foreign exchange, and the impact of government regulations. In addition, many farms are dependent on a limited number of key individuals whose injury or death may significantly affect the successful operation of the business. Consequently, agricultural production loans may involve a greater degree of risk than other types of loans.

Leases:

The loss forecasting model applies the historical rate of loss for similar loans over the expected life of the asset. Leases typically represent an elevated level of credit risk as compared to loans secured by real estate as the collateral for leases is often subject to a more rapid rate of depreciation or depletion. The ultimate severity of loss is impacted by the type of collateral securing the exposure, the size of the exposure, the borrower’s industry sector, any guarantors and the geographic market. Assumptions of expected loss are conditioned to the economic outlook and the other variables discussed above.

Unfunded commitments:

The estimated credit losses associated with these unfunded lending commitments is calculated using the same models and methodologies noted above and incorporate utilization assumptions at time of default. The reserve for unfunded commitments is maintained on the consolidated balance sheet in other liabilities.

Accounting Standards Adopted in 2021

On January 1, 2021, the Company adopted ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This ASU simplified the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The guidance also promoted consistent application and simplification of GAAP for other areas of Topic 740 by clarifying and amending existing guidance.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted in response to the Coronavirus Disease 2019 (COVID-19) pandemic. The CARES Act provides optional temporary relief from troubled debt restructuring and impairment accounting requirements for loan modifications related to the COVID-19 pandemic made during the period from March 1, 2020 to the earlier of December 31, 2020 or 60 days after the national emergency concerning COVID-19 declared by the President terminates. The applicable period for this relief was extended through 2021 by way of the Consolidated Appropriations Act. Following the passage of the CARES Act legislation, the "Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus" was issued by federal bank regulators, which similarly offers temporary relief from troubled debt restructuring accounting for loan payment deferrals for certain customers whose businesses are experiencing economic hardship due to Coronavirus. The Interagency Statement requires the modification event to be short-term and COVID-19 related, requiring the borrower be not more than 30 days past due as of the date the modification program was implemented, and allowing Management to apply judgement as when the modification program terminates. The ability to suspend TDR accounting under either program does not apply to any adverse impact on the credit of a borrower that is not related to the COVID-19 pandemic.

Accounting Standards Pending Adoption

FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU provides temporary optional guidance to ease the potential burden in accounting for reference rate reform by providing optional expedients and exceptions for applying generally accepted accounting principles (GAAP) to contracts, hedging

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relationships, and other transactions affected if certain criteria are met. The amendments in this Update apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The election to apply the optional relief for existing fair value and cash flow hedge accounting relationships may be made on a hedge-by-hedge basis and across multiple reporting periods. Amendments in this ASU are effective for the Company through December 31, 2022. As the Company has an insignificant number of instruments that are applicable to this ASU, management has determined that no impact to the valuations of these instruments are applicable for financial reporting purposes.

Note 2 - Investment Securities

The amortized cost, estimated fair values and allowance for credit losses of investments in debt securities are summarized in the following tables:

	June 30, 2021
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Estimated Fair Value
Debt Securities Available for Sale
Obligations of U.S. government agencies	$	1,126,342	$	11,628	$	(4,554)	$	—	$	1,133,416
Obligations of states and political subdivisions	141,168		6,208		(452)		—		146,924
Corporate bonds	2,473		83		—		—		2,556
Asset backed securities	563,347		2,941		(1,616)		—		564,672
Total debt securities available for sale	$	1,833,330	$	20,860	$	(6,622)	$	—	$	1,847,568

Debt Securities Held to Maturity
Obligations of U.S. government agencies	$	226,925	$	10,926	$	—	$	—	$	237,851
Obligations of states and political subdivisions	8,853		315		—		—		9,168
Total debt securities held to maturity	$	235,778	$	11,241	$	—	$	—	$	247,019

	December 31, 2020
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Estimated Fair Value
Debt Securities Available for Sale
Obligations of U.S. government agencies	$	795,555	$	17,710	$	(891)	$	—	$	812,374
Obligations of states and political subdivisions	123,347		5,748		—		—		129,095
Corporate bonds	2,459		85		—		—		2,544
Asset backed securities	473,720		1,682		(5,151)		—		470,251
Total debt securities available for sale	$	1,395,081	$	25,225	$	(6,042)	$	—	$	1,414,264
Debt Securities Held to Maturity
Obligations of U.S. government agencies	273,667		13,774		—		$	—	287,441
Obligations of states and political subdivisions	10,896		389		—		—		11,285
Total debt securities held to maturity	$	284,563	$	14,163	$	—	$	—	$	298,726

There were no sales of investment securities during the three and six months ended June 30, 2021 and 2020, respectively. Investment securities with an aggregate carrying value of $456,446,000 and $429,049,000 at June 30, 2021 and December 31, 2020, respectively, were pledged as collateral for specific borrowings, lines of credit or local agency deposits.

The amortized cost and estimated fair value of debt securities at June 30, 2021 by contractual maturity are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. At June 30, 2021, obligations of U.S. government corporations and agencies with a cost basis totaling $1,104,406,000 consist almost entirely of residential real estate mortgage-backed securities whose contractual maturity, or principal repayment, will follow the repayment of the underlying mortgages. For purposes of the following table, the entire outstanding balance of these mortgage-backed securities issued by U.S. government corporations and agencies is categorized based on final maturity date. At June 30, 2021, the Company estimates the average remaining life of these mortgage-backed securities issued by U.S. government corporations and agencies to be approximately 4.21 years. Average remaining life is defined as the time span after which the principal balance has been reduced by half.

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As of June 30, 2021, the contractual final maturity for available for sale and held to maturity investment securities is as follows:

Debt Securities	Available for Sale				Held to Maturity
(in thousands)	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Due in one year	$	1,093	$	1,117	$	—	$	—
Due after one year through five years	181,624		181,791		1,011		1,125
Due after five years through ten years	337,145		338,985		20,641		21,363
Due after ten years	1,313,468		1,325,675		214,126		224,531
Totals	$	1,833,330	$	1,847,568	$	235,778	$	247,019

Gross unrealized losses on debt securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows:

June 30, 2021:	Less than 12 months				12 months or more				Total
(in thousands)	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Debt Securities Available for Sale
Obligations of U.S. government agencies	$	566,137	$	(4,554)	$	—	$	—	$	566,137	$	(4,554)
Obligations of states and political subdivisions	24,207		(452)		—		—		24,207		(452)
Asset backed securities	103,518		(394)		152,895		(1,222)		256,413		(1,616)
Total debt securities available for sale	$	693,862	$	(5,400)	$	152,895	$	(1,222)	$	846,757	$	(6,622)

December 31, 2020:	Less than 12 months				12 months or more				Total
(in thousands)	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Debt Securities Available for Sale
Obligations of U.S. government agencies	$	160,543	$	(891)	$	—	$	—	$	160,543	$	(891)
Asset backed securities	51,544		(441)		297,020		(4,710)		348,564		(5,151)
Total debt securities available for sale	$	212,087	$	(1,332)	$	297,020	$	(4,710)	$	509,107	$	(6,042)

Obligations of U.S. government agencies: The unrealized losses on investments in obligations of U.S. government agencies are caused by interest rate increases and illiquidity. The contractual cash flows of these securities are guaranteed by U.S. Government Sponsored Entities (principally Fannie Mae and Freddie Mac). It is expected that the securities would not be settled at a price less than the amortized cost of the investment.Because management believes the decline in fair value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell and more likely than not will not be required to sell, there is no impairment on these securities and there has been no allowance for credit losses recorded. At June 30, 2021, 32 debt securities representing obligations of U.S. government agencies had unrealized losses with aggregate depreciation of 0.80% from the Company’s amortized cost basis.

Obligations of states and political subdivisions: The unrealized losses on investments in obligations of states and political subdivisions were caused by increases in required yields by investors in these types of securities. It is expected that the securities would not be settled at a price less than the amortized cost of the investment. Because management believes the decline in fair value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell and more likely than not will not be required to sell, there is no impairment on these securities and there has been no allowance for credit losses recorded as of June 30, 2021. At June 30, 2021, six debt securities representing obligations of states and political subdivisions had unrealized losses with aggregate depreciation of 1.83% from the Company’s amortized cost basis.

Asset backed securities: The unrealized losses on investments in asset backed securities were caused by increases in required yields by investors for these types of securities. At the time of purchase, each of these securities was rated AA or AAA and through June 30, 2021 has not experienced any deterioration in credit rating. At June 30, 2021, 18 asset backed securities had unrealized losses with aggregate depreciation of 0.63% from the Company’s amortized cost basis. The Company continues to monitor these securities for changes in credit rating or other indications of credit deterioration. Because management believes the decline in fair value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell and more likely than not will not be required to sell, there is no impairment on these securities and there has been no allowance for credit losses recorded as of June 30, 2021.

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The Company monitors credit quality of debt securities held-to-maturity through the use of credit rating. The Company monitors the credit rating on a monthly basis. The following table summarizes the amortized cost of debt securities held-to-maturity at the dates indicated, aggregated by credit quality indicator:

	June 30, 2021				December 31, 2020
	AAA/AA/A		BBB/BB/B		AAA/AA/A		BBB/BB/B
	(In thousands)				(In thousands)
Debt Securities Held to Maturity
Obligations of U.S. government agencies	$	226,925	$	—	$	273,667	$	—
Obligations of states and political subdivisions	8,853		—		10,896		—
Total debt securities held to maturity	$	235,778	$	—	$	284,563	$	—

Note 3 – Loans

A summary of loan balances follows:

(in thousands)	June 30, 2021		December 31, 2020
Commercial real estate:
CRE non-owner occupied	$	1,534,256	$	1,535,555
CRE owner occupied	659,948		624,375
Multifamily	828,101		639,480
Farmland	172,031		152,492
Total commercial real estate loans	3,194,336		2,951,902
Consumer:
SFR 1-4 1st DT liens	654,373		546,592
SFR HELOCs and junior liens	325,127		327,484
Other	71,109		78,032
Total consumer loans	1,050,609		952,108
Commercial and industrial	452,069		526,327
Construction	200,714		284,842
Agriculture production	41,967		44,164
Leases	5,199		3,784
Total loans, net of deferred loan fees and discounts	$	4,944,894	$	4,763,127
Total principal balance of loans owed, net of charge-offs	$	4,984,824	$	4,805,596
Unamortized net deferred loan fees	(19,843)		(16,984)
Discounts to principal balance of loans owed, net of charge-offs	(20,087)		(25,485)
Total loans, net of unamortized deferred loan fees and discounts	$	4,944,894	$	4,763,127
Allowance for credit losses on loans	$	(86,062)	$	(91,847)

As of June 30, 2021, the total gross balance outstanding of PPP loans (included within commercial and industrial) was $248,582,000 as compared to total PPP originations of $640,410,000. In connection with the origination of these loans, the Company earned approximately $25,299,000 in loan fees, offset by deferred loan costs of approximately $1,245,000, the net of which will be recognized over the earlier of loan maturity (between 24-60 months), repayment or receipt of forgiveness confirmation. As of June 30, 2021 there was approximately $8,990,000 in net deferred fee income remaining to be recognized, as compared to $7,212,000 in remaining net deferred fee income as of December 31, 2020. During the three and six months ended June 30, 2021, the Company recognized $2,344,000 and $7,304,000, respectively in fees on PPP loans. During the three and six months ended June 30, 2020, the Company recognized $2,356,000, respectively, in fees on PPP loans.

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Note 4 – Allowance for Credit Losses

For the periods indicated, the following tables summarize the activity in the allowance for credit losses on loans which is recorded as a contra asset, and the reserve for unfunded commitments which is recorded on the balance sheet within other liabilities:

	Allowance for credit losses – Three months ended June 30, 2021
(in thousands)	Beginning Balance		Charge-offs		Recoveries		Provision (benefit)		Ending  Balance
Commercial real estate:
CRE non-owner occupied	$	26,434	$	—	$	—	$	(406)	$	26,028
CRE owner occupied	9,874		—		—		589		10,463
Multifamily	12,371		—		—		825		13,196
Farmland	1,724		—		—		226		1,950
Total commercial real estate loans	50,403		—		—		1,234		51,637
Consumer:
SFR 1-4 1st DT liens	10,665		—		1		(37)		10,629
SFR HELOCs and junior liens	11,079		—		512		(890)		10,701
Other	2,860		(86)		59		(213)		2,620
Total consumer loans	24,604		(86)		572		(1,140)		23,950
Commercial and industrial	4,464		(301)		79		269		4,511
Construction	5,476		—		—		(525)		4,951
Agriculture production	988		—		2		17		1,007
Leases	6		—		—		—		6
Allowance for credit losses on loans	85,941		(387)		653		(145)		86,062
Reserve for unfunded commitments	3,580		—		—		(115)		3,465
Total	$	89,521	$	(387)	$	653	$	(260)	$	89,527

	Allowance for credit losses – Six months ended June 30, 2021
(in thousands)	Beginning Balance		Charge-offs		Recoveries		Provision (benefit)		Ending  Balance
Commercial real estate:
CRE non-owner occupied	$	29,380	$	—	$	2	$	(3,354)	$	26,028
CRE owner occupied	10,861		—		1		(399)		10,463
Multifamily	11,472		—		—		1,724		13,196
Farmland	1,980		—		—		(30)		1,950
Total commercial real estate loans	53,693		—		3		(2,059)		51,637
Consumer:
SFR 1-4 1st DT liens	10,117		—		11		501		10,629
SFR HELOCs and junior liens	11,771		—		797		(1,867)		10,701
Other	3,260		(279)		165		(526)		2,620
Total consumer loans	25,148		(279)		973		(1,892)		23,950
Commercial and industrial	4,252		(334)		215		378		4,511
Construction	7,540		—		—		(2,589)		4,951
Agriculture production	1,209		—		22		(224)		1,007
Leases	5		—		—		1		6
Allowance for credit losses on loans	91,847		(613)		1,213		(6,385)		86,062
Reserve for unfunded commitments	3,400		—		—		65		3,465
Total	$	95,247	$	(613)	$	1,213	$	(6,320)	$	89,527

In determining the allowance for credit losses, accruing loans with similar risk characteristics are generally evaluated collectively. To estimate expected losses the Company generally utilizes historical loss trends and the remaining contractual lives of the loan portfolios to determine estimated credit losses through a reasonable and supportable forecast period. Individual loan credit quality indicators including loan grade and borrower repayment performance have been statistically correlated with historical credit losses and various econometrics, including California unemployment, gross domestic product, and corporate bond yields. Model forecasts may be adjusted for inherent limitations or biases that have been identified through independent validation and back-testing of model performance to actual realized results.

The Company utilizes a forecast period of approximately eight quarters and obtains the forecast data from publicly available sources as of the balance sheet date. This forecast data continues to evolve and included significant shifts in the magnitude of changes for both the unemployment and GDP factors leading up to the balance sheet date. Management noted that the majority of economic forecasts utilized

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in the ACL calculation seem to have rebounded slightly in the current quarter, coinciding with the widespread availability of vaccines, continued easing of occupancy and social distancing restrictions, and continued government stimulus efforts. Management believes that the allowance for credit losses at June 30, 2021 appropriately reflected expected credit losses inherent in the loan portfolio at that date.

	Allowance for credit losses – Year ended December 31, 2020
(in thousands)	Beginning Balance		Adoption of CECL		Charge-offs		Recoveries		Provision (benefit)		Ending Balance
Commercial real estate:
CRE non-owner occupied	$	5,948	$	6,701	$	—	$	198	$	16,533	$	29,380
CRE owner occupied	2,027		2,281		—		28		6,525		10,861
Multifamily	3,352		2,281		—		—		5,839		11,472
Farmland	668		585		(182)		—		909		1,980
Total commercial real estate loans	11,995		11,848		(182)		226		29,806		53,693
Consumer:
SFR 1-4 1st DT liens	2,306		2,675		(13)		416		4,733		10,117
SFR HELOCs and junior liens	6,183		4,638		(116)		304		762		11,771
Other	1,595		971		(670)		347		1,017		3,260
Total consumer loans	10,084		8,284		(799)		1,067		6,512		25,148
Commercial and industrial	4,867		(1,961)		(774)		568		1,552		4,252
Construction	3,388		933		—		—		3,219		7,540
Agriculture production	261		(179)		—		24		1,103		1,209
Leases	21		(12)		—		—		(4)		5
Allowance for credit losses on loans	30,616		18,913		(1,755)		1,885		42,188		91,847
Reserve for unfunded commitments	2,775		—		—		—		625		3,400
Total	$	33,391	$	18,913	$	(1,755)	$	1,885	$	42,813	$	95,247

On January 1, 2020, the Company adopted ASU 2016-03 Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which replaces the incurred loss methodology that is referred to as the current expected credit loss (CECL) methodology. The Company recognized an increase in the ACL for loans totaling $18,913,000, including a reclassification of $481,000 from discounts on acquired loans to the allowance for credit losses, as a cumulative effect adjustment from change in accounting policies, with a corresponding decrease in retained earnings, net of $5,449,000 in taxes of $12,983,000.

	Allowance for credit losses – Three months ended June 30, 2020
(in thousands)	Beginning Balance		Charge-offs		Recoveries		Provision		Ending Balance
Commercial real estate:
CRE non-owner occupied	$	18,034	$	—	$	5	$	8,052	$	26,091
CRE owner occupied	5,366		—		4		3,340		8,710
Multifamily	5,140		—		—		3,441		8,581
Farmland	713		—		—		755		1,468
Total commercial real estate loans	29,253		—		9		15,588		44,850
Consumer:
SFR 1-4 1st DT liens	5,650		(11)		2		2,374		8,015
SFR HELOCs and junior liens	11,196		(23)		92		843		12,108
Other	2,746		(243)		72		467		3,042
Total consumer loans	19,592		(277)		166		3,684		23,165
Commercial and industrial	3,867		(214)		55		310		4,018
Construction	4,595		—		—		2,180		6,775
Agriculture production	593		—		—		326		919
Leases	11		—		—		1		12
Allowance for credit losses on loans	$	57,911	$	(491)	$	230	$	22,089	$	79,739
Reserve for unfunded commitments	2,845		—		—		154		2,999
Total	$	60,756	$	(491)	$	230	$	22,243	$	82,738

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	Allowance for credit losses – Six months ended June 30, 2020
(in thousands)	Beginning Balance		Adoption of CECL		Charge-offs		Recoveries		Provision		Ending Balance
Commercial real estate:
CRE non-owner occupied	$	5,948	$	6,701	$	—	$	193	$	13,249	$	26,091
CRE owner occupied	2,027		2,281		—		9		4,393		8,710
Multifamily	3,352		2,281		—		—		2,948		8,581
Farmland	668		585		—		—		215		1,468
Total commercial real estate loans	11,995		11,848		—		202		20,805		44,850
Consumer:
SFR 1-4 1st DT liens	2,306		2,675		(11)		412		2,633		8,015
SFR HELOCs and junior liens	6,183		4,638		(23)		140		1,170		12,108
Other	1,595		971		(373)		167		682		3,042
Total consumer loans	10,084		8,284		(407)		719		4,485		23,165
Commercial and industrial	4,867		(1,961)		(594)		181		1,525		4,018
Construction	3,388		933		—		—		2,454		6,775
Agriculture production	261		(179)		—		20		817		919
Leases	21		(12)		—		—		3		12
Allowance for credit losses on loans	30,616		18,913		(1,001)		1,122		30,089		79,739
Reserve for unfunded commitments	2,775		—		—		—		224		2,999
Total	$	33,391	$	18,913	$	(1,001)	$	1,122	$	30,313	$	82,738

As part of the on-going monitoring of the credit quality of the Company’s loan portfolio, management tracks certain credit quality indicators including, but not limited to, trends relating to (i) the level of criticized and classified loans, (ii) net charge-offs, (iii) non-performing loans, and (iv) delinquency within the portfolio. The Company analyzes loans individually to classify the loans as to credit risk and grading. This analysis is performed annually for all outstanding balances greater than $1,000,000 and non-homogeneous loans, such as commercial real estate loans, unless other indicators, such as delinquency, trigger more frequent evaluation. Loans below the $1,000,000 threshold and homogenous in nature are evaluated as needed for proper grading based on delinquency and borrower credit scores.

The Company utilizes a risk grading system to assign a risk grade to each of its loans. Loans are graded on a scale ranging from Pass to Loss. A description of the general characteristics of the risk grades is as follows:

•Pass– This grade represents loans ranging from acceptable to very little or no credit risk. These loans typically meet most if not all policy standards in regard to: loan amount as a percentage of collateral value, debt service coverage, profitability, leverage, and working capital.

•Special Mention– This grade represents “Other Assets Especially Mentioned” in accordance with regulatory guidelines and includes loans that display some potential weaknesses which, if left unaddressed, may result in deterioration of the repayment prospects for the asset or may inadequately protect the Company’s position in the future. These loans warrant more than normal supervision and attention.

•Substandard– This grade represents “Substandard” loans in accordance with regulatory guidelines. Loans within this rating typically exhibit weaknesses that are well defined to the point that repayment is jeopardized. Loss potential is, however, not necessarily evident. The underlying collateral supporting the credit appears to have sufficient value to protect the Company from loss of principal and accrued interest, or the loan has been written down to the point where this is true. There is a definite need for a well-defined workout/rehabilitation program.

•Doubtful– This grade represents “Doubtful” loans in accordance with regulatory guidelines. An asset classified as Doubtful has all the weaknesses inherent in a loan classified Substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Pending factors include proposed merger, acquisition, or liquidation procedures, capital injection, perfecting liens on additional collateral, and financing plans.

•Loss– This grade represents “Loss” loans in accordance with regulatory guidelines. A loan classified as Loss is considered uncollectible and of such little value that its continuance as a bankable asset is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off the loan, even though some recovery may be affected in the future. The portion of the loan that is graded loss should be charged off no later than the end of the quarter in which the loss is identified.

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Based on the most recent analysis performed, the risk category of loans by class of loans is as follows for the period indicated:

	Term Loans Amortized Cost Basis by Origination Year – As of June 30, 2021
(in thousands)	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
Commercial real estate:
CRE non-owner occupied risk ratings
Pass	$	89,643	$	120,974	$	206,093	$	137,384	$	246,584	$	596,837	$	72,393	$	—	$	1,469,908
Special Mention	—		—		6,191		11,613		3,667		17,202		10,760		—		49,433
Substandard	—		—		—		1,416		568		12,931		—		—		14,915
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total CRE non-owner occupied risk ratings	$	89,643	$	120,974	$	212,284	$	150,413	$	250,819	$	626,970	$	83,153	$	—	$	1,534,256

Commercial real estate:
CRE owner occupied risk ratings
Pass	$	89,094	$	99,949	$	68,668	$	55,048	$	55,684	$	248,033	$	19,755	$	—	$	636,231
Special Mention	—		—		—		288		6,797		8,447		—		—		15,532
Substandard	—		—		1,483		1,262		465		4,975		—		—		8,185
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total CRE owner occupied risk ratings	$	89,094	$	99,949	$	70,151	$	56,598	$	62,946	$	261,455	$	19,755	$	—	$	659,948

Commercial real estate:
Multifamily risk ratings
Pass	$	176,116	$	86,806	$	113,996	$	121,226	$	91,054	$	168,088	$	24,533	$	—	$	781,819
Special Mention	—		9,385		—		—		—		24,669		7,723		—		41,777
Substandard	—		—		4,334		—		—		171		—		—		4,505
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total multifamily loans	$	176,116	$	96,191	$	118,330	$	121,226	$	91,054	$	192,928	$	32,256	$	—	$	828,101

Commercial real estate:
Farmland risk ratings
Pass	$	26,440	$	18,526	$	21,676	$	18,051	$	8,397	$	21,476	$	44,775	$	—	$	159,341
Special Mention	—		—		—		—		1,197		3,316		1,775		—		6,288
Substandard	—		—		3,267		—		590		1,111		1,434		—		6,402
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total farmland loans	$	26,440	$	18,526	$	24,943	$	18,051	$	10,184	$	25,903	$	47,984	$	—	$	172,031

Consumer loans:
SFR 1-4 1st DT liens risk ratings
Pass	$	173,937	$	182,911	$	59,675	$	39,522	$	41,506	$	139,178	$	—	$	4,812	$	641,541
Special Mention	—		—		288		1,154		420		2,779		—		977		5,618
Substandard	—		—		—		1,131		273		5,440		—		370		7,214
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total SFR 1st DT liens	$	173,937	$	182,911	$	59,963	$	41,807	$	42,199	$	147,397	$	—	$	6,159	$	654,373

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	Term Loans Amortized Cost Basis by Origination Year – As of June 30, 2021
(in thousands)	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
Consumer loans:
SFR HELOCs and Junior Liens
Pass	$	624	$	—	$	—	$	—	$	—	$	242	$	300,548	$	11,338	$	312,752
Special Mention	—		—		—		—		—		92		4,386		884		5,362
Substandard	—		—		—		—		—		17		5,460		1,536		7,013
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total SFR HELOCs and Junior Liens	$	624	$	—	$	—	$	—	$	—	$	351	$	310,394	$	13,758	$	325,127

Consumer loans:
Other risk ratings
Pass	$	12,077	$	19,995	$	22,680	$	10,425	$	2,749	$	1,367	$	576	$	—	$	69,869
Special Mention	—		52		211		243		98		67		72		—		743
Substandard	—		67		88		126		73		132		11		—		497
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total other consumer loans	$	12,077	$	20,114	$	22,979	$	10,794	$	2,920	$	1,566	$	659	$	—	$	71,109

Commercial and industrial loans:
Commercial and industrial risk ratings
Pass	$	202,893	$	73,077	$	40,966	$	14,631	$	9,585	$	9,484	$	94,260	$	840	$	445,736
Special Mention	—		29		119		550		116		161		429		—		1,404
Substandard	—		—		166		102		1,011		684		2,887		79		4,929
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total commercial and industrial loans	$	202,893	$	73,106	$	41,251	$	15,283	$	10,712	$	10,329	$	97,576	$	919	$	452,069

Construction loans:
Construction risk ratings
Pass	$	17,725	$	88,892	$	51,436	$	10,722	$	2,092	$	23,539	$	1	$	—	$	194,407
Special Mention	—		—		—		—		346		1,460		—		—		1,806
Substandard	—		—		—		—		—		4,501		—		—		4,501
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total construction loans	$	17,725	$	88,892	$	51,436	$	10,722	$	2,438	$	29,500	$	1	$	—	$	200,714

Agriculture production loans:
Agriculture production risk ratings
Pass	$	1,241	$	1,012	$	1,767	$	1,189	$	1,229	$	1,006	$	32,132	$	—	$	39,576
Special Mention	—		—		—		181		—		74		2,016		—		2,271
Substandard	—		—		—		—		—		—		120		—		120
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total agriculture production loans	$	1,241	$	1,012	$	1,767	$	1,370	$	1,229	$	1,080	$	34,268	$	—	$	41,967

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	Term Loans Amortized Cost Basis by Origination Year – As of June 30, 2021
(in thousands)	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
Leases:
Lease risk ratings
Pass	$	5,199	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$5,199
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total leases	$	5,199	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	5,199

Total loans outstanding:
Risk ratings
Pass	$	794,989	$	692,142	$	586,957	$	408,198	$	458,880	$	1,209,250	$	588,973	$	16,990	$	4,756,379
Special Mention	—		9,466		6,809		14,029		12,641		58,267		27,161		1,861		130,234
Substandard	—		67		9,338		4,037		2,980		29,962		9,912		1,985		58,281
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total loans outstanding	$	794,989	$	701,675	$	603,104	$	426,264	$	474,501	$	1,297,479	$	626,046	$	20,836	$	4,944,894

	Term Loans Amortized Cost Basis by Origination Year – As of December 31, 2020
(in thousands)	2020		2019		2018		2017		2016		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
Commercial real estate:
CRE non-owner occupied risk ratings
Pass	$	120,520	$	207,899	$	155,730	$	256,677	$	179,523	$	460,644	$	76,730	$	—	$	1,457,723
Special Mention	—		7,455		11,692		5,407		15,773		18,832		12,205		—		71,364
Substandard	—		—		1,449		584		2,147		2,288		—		—		6,468
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total CRE non-owner occupied risk ratings	$	120,520	$	215,354	$	168,871	$	262,668	$	197,443	$	481,764	$	88,935	$	—	$	1,535,555

Commercial real estate:
CRE owner occupied risk ratings
Pass	$	105,896	$	75,144	$	53,816	$	58,371	$	54,541	$	227,828	$	25,508	$	—	$	601,104
Special Mention	—		—		288		7,451		2,955		6,140		—		—		16,834
Substandard	—		1,533		1,301		475		1,306		1,822		—		—		6,437
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total CRE owner occupied risk ratings	$	105,896	$	76,677	$	55,405	$	66,297	$	58,802	$	235,790	$	25,508	$	—	$	624,375

Commercial real estate:
Multifamily risk ratings
Pass	$	77,646	$	118,725	$	113,882	$	70,112	$	67,457		$	123,518	$	19,007	$	—	$	590,347
Special Mention	9,441		—		—		603		24,687			772		9,259		—		44,762
Substandard	—		4,371		—		—		—		—	—		—		—		4,371
Doubtful/Loss	—		—		—		—		—			—		—		—		—
Total multifamily loans	$	87,087	$	123,096	$	113,882	$	70,715	$	92,144		$	124,290	$	28,266	$	—	$	639,480

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	Term Loans Amortized Cost Basis by Origination Year – As of December 31, 2020
(in thousands)	2020		2019		2018		2017		2016		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
Commercial real estate:
Farmland risk ratings
Pass	$	17,640	$	25,003	$	19,148	$	12,834	$	7,377	$	17,129	$	39,411	$	—	$	138,542
Special Mention	—		2,567		—		1,271		227		3,107		2,258		—		9,430
Substandard	—		700		—		602		—		1,214		2,004		—		4,520
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total farmland loans	$	17,640	$	28,270	$	19,148	$	14,707	$	7,604	$	21,450	$	43,673	$	—	$	152,492

Consumer loans:
SFR 1-4 1st DT liens risk ratings
Pass	$	183,719	$	80,717	$	36,342	$	53,001	$	46,467	$	126,465	$	76	$	5,507	$	532,294
Special Mention	—		290		684		110		15		2,936		—		934		4,969
Substandard	—		—		1,174		929		935		5,763		—		528		9,329
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total SFR 1st DT liens	$	183,719	$	81,007	$	38,200	$	54,040	$	47,417	$	135,164	$	76	$	6,969	$	546,592

Consumer loans:
SFR HELOCs and Junior Liens
Pass	$	793	$	—	$	13	$	360	$	300	$	910	$	297,160	$	14,051	$	313,587
Special Mention	—		—		16		—		—		83		4,504		789		5,392
Substandard	—		—		—		—		—		39		6,698		1,768		8,505
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total SFR HELOCs and Junior Liens	$	793	$	—	$	29	$	360	$	300	$	1,032	$	308,362	$	16,608	$	327,484

Consumer loans:
Other risk ratings
Pass	$	25,876	$	29,539	$	14,170	$	4,238	$	1,020	$	967	$	986	$	—	$	76,796
Special Mention	43		208		147		74		24		65		90		—		651
Substandard	58		82		210		74		12		140		9		—		585
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total other consumer loans	$	25,977	$	29,829	$	14,527	$	4,386	$	1,056	$	1,172	$	1,085	$	—	$	78,032

Commercial and industrial loans:
Commercial and industrial risk ratings
Pass	$	356,701	$	48,838	$	20,463	$	13,151	$	5,185	$	9,490	$	65,938	$	1,085	$	520,851
Special Mention	—		102		698		195		20		178		207		11		1,411
Substandard	—		301		53		1,142		823		148		1,519		79		4,065
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total commercial and industrial loans	$	356,701	$	49,241	$	21,214	$	14,488	$	6,028	$	9,816	$	67,664	$	1,175	$	526,327

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	Term Loans Amortized Cost Basis by Origination Year – As of December 31, 2020
(in thousands)	2020		2019		2018		2017		2016		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
Construction loans:
Construction risk ratings
Pass	69,133		41,786		92,191		51,082		20,868		2,876		—		$	—	$	277,936
Special Mention	—		—		—		346		—		1,780		—		—		2,126
Substandard	—		—		—		—		4,529		251		—		—		4,780
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total construction loans	$	69,133	$	41,786	$	92,191	$	51,428	$	25,397	$	4,907	$	—	$	—	$	284,842

Agriculture production loans:
Agriculture production risk ratings
Pass	$	977	$	2,079	$	1,590	$	1,838	$	663	$	708	$	36,051	$	—	$	43,906
Special Mention	—		—		203		—		49		—		—		—		252
Substandard	—		—		—		—		6		—		—		—		6
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total agriculture production loans	$	977	$	2,079	$	1,793	$	1,838	$	718	$	708	$	36,051	$	—	$	44,164

Leases:
Lease risk ratings
Pass	$	3,784	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	3,784
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total leases	$	3,784	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	3,784

Total loans outstanding:
Risk ratings
Pass	$	962,685	$	629,730	$	507,345	$	521,664	$	383,401	$	970,535	$	560,867	$	20,643	$	4,556,870
Special Mention	9,484		10,622		13,728		15,457		43,750		33,893		28,523		1,734		157,191
Substandard	58		6,987		4,187		3,806		9,758		11,665		10,230		2,375		49,066
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total loans outstanding	$	972,227	$	647,339	$	525,260	$	540,927	$	436,909	$	1,016,093	$	599,620	$	24,752	$	4,763,127

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The following table shows the ending balance of current and past due originated loans by loan category as of the date indicated:

	Analysis of Past Due Loans - As of June 30, 2021
(in thousands)	30-59 days		60-89 days		> 90 days		Total Past Due Loans		Current		Total
Commercial real estate:
CRE non-owner occupied	$	337	$	49	$	3,919	$	4,305	$	1,529,951	$	1,534,256
CRE owner occupied	28		62		412		502		659,446		659,948
Multifamily	—		—		—		—		828,101		828,101
Farmland	—		—		846		846		171,185		172,031
Total commercial real estate loans	365		111		5,177		5,653		3,188,683		3,194,336
Consumer:
SFR 1-4 1st DT liens	—		—		423		423		653,950		654,373
SFR HELOCs and junior liens	694		63		1,565		2,322		322,805		325,127
Other	13		—		52		65		71,044		71,109
Total consumer loans	707		63		2,040		2,810		1,047,799		1,050,609
Commercial and industrial	250		178		160		588		451,481		452,069
Construction	—		—		—		—		200,714		200,714
Agriculture production	241		—		—		241		41,726		41,967
Leases	—		—		—		—		5,199		5,199
Total	$	1,563	$	352	$	7,377	$	9,292	$	4,935,602	$	4,944,894

	Analysis of Past Due Loans - As of December 31, 2020
(in thousands)	30-59 days		60-89 days		> 90 days		Total Past Due Loans		Current		Total
Commercial real estate:
CRE non-owner occupied	$	127	$	173	$	239	$	539	$	1,535,016	$	1,535,555
CRE owner occupied	297				824		1,121		623,254		624,375
Multifamily	—		—		—		—		639,480		639,480
Farmland	899		—		70		969		151,523		152,492
Total commercial real estate loans	1,323		173		1,133		2,629		2,949,273		2,951,902
Consumer:
SFR 1-4 1st DT liens	37		—		960		997		545,595		546,592
SFR HELOCs and junior liens	418		212		1,671		2,301		325,183		327,484
Other	41		13		100		154		77,878		78,032
Total consumer loans	496		225		2,731		3,452		948,656		952,108
Commercial and industrial	155		426		105		686		525,641		526,327
Construction	—		—		—		—		284,842		284,842
Agriculture production	—		—		—		—		44,164		44,164
Leases	—		—		—		—		3,784		3,784
Total	$	1,974	$	824	$	3,969	$	6,767	$	4,756,360	$	4,763,127

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The following table shows the ending balance of non accrual loans by loan category as of the date indicated:

	Non Accrual Loans
	As of June 30, 2021						As of December 31, 2020
(in thousands)	Non accrual with no allowance for credit losses		Total non accrual		Past due 90 days or more and still accruing		Non accrual with no allowance for credit losses		Total non accrual		Past due 90 days or more and still accruing
Commercial real estate:
CRE non-owner occupied	$	8,515	$	8,515	$	—	$	3,110	$	3,110	$	—
CRE owner occupied	3,132		5,610		—		3,111		4,061		—
Multifamily	171		171		—		—		—		—
Farmland	1,346		1,346		—		1,468		1,538		—
Total commercial real estate loans	13,164		15,642		—		7,689		8,709		—
Consumer:
SFR 1-4 1st DT liens	4,185		4,328		—		4,950		5,093		—
SFR HELOCs and junior liens	3,677		4,604		—		4,480		6,148		—
Other	47		114		—		68		167		—
Total consumer loans	7,909		9,046		—		9,498		11,408		—
Commercial and industrial	86		3,615		—		652		2,183		—
Construction	4,402		4,402		—		4,546		4,546		—
Agriculture production	—		—		—		5		18		—
Leases	—		—		—		—		—		—
Sub-total	25,561		32,705		—		22,390		26,864		—
Less: Guaranteed loans	(608)		(865)		—		(687)		(811)
Total, net	$	24,953	$	31,840	$	—	$	21,703	$	26,053	$	—

Interest income on non accrual loans that would have been recognized during the three months ended June 30, 2021 and 2020, if all such loans had been current in accordance with their original terms, totaled $524,000 and $428,000, respectively. Interest income actually recognized on these originated loans during the three months ended June 30, 2021 and 2020 was $159,000 and $39,000, respectively.

Interest income on non accrual loans that would have been recognized during the six months ended June 30, 2021 and 2020, if all such loans had been current in accordance with their original terms, totaled $1,060,000 and $859,000, respectively. Interest income actually recognized on these originated loans during the six months ended June 30, 2021 and 2020 was $176,000 and $86,000, respectively.

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The following tables present the amortized cost basis of collateral dependent loans by class of loans as of the following periods:

	As of June 30, 2021
(in thousands)	Retail		Office		Warehouse		Other		Multifamily		Farmland		SFR -1st Deed		SFR -2nd Deed		Automobile/Truck		A/R and Inventory		Equipment		Total
Commercial real estate:
CRE non-owner occupied	$	2,853	$	416	$	—	$	3,918	$	—	$	—	$	1,328	$	—	$	—	$	—	$	—	$	8,515
CRE owner occupied	543		—		1,611		978		—		—		—		—		—		—		—		3,132
Multifamily	—		—		—		—		171		—		—		—		—		—		—		171
Farmland	—		—		—		—		—		1,346		—		—		—		—		—		1,346
Total commercial real estate loans	3,396		416		1,611		4,896		171		1,346		1,328		—		—		—		—		13,164
Consumer:
SFR 1-4 1st DT liens	—		—		—		—		—		—		4,185		—		—		—		—		4,185
SFR HELOCs and junior liens	—		—		—		—		—		—		1,753		1,924		—		—		—		3,677
Other	—		—		—		26		—		—		—		—		21		—		—		47
Total consumer loans	—		—		—		26		—		—		5,938		1,924		21		—		—		7,909
Commercial and industrial	—		—		—		—		—		—		—		—		—		43		43		86
Construction	—		—		—		—		—		—		4,402		—		—		—		—		4,402
Agriculture production	—		—		—		—		—		—		—		—		—		—		—		—
Leases	—		—		—		—		—		—		—		—		—		—		—		—
Total	$	3,396	$	416	$	1,611	$	4,922	$	171	$	1,346	$	11,668	$	1,924	$	21	$	43	$	43	$	25,561

	As of December 31, 2020
(in thousands)	Retail		Office		Warehouse		Other		Multifamily			Farmland		SFR -1st Deed		SFR -2nd Deed		Automobile/Truck		A/R and Inventory		Equipment		Total
Commercial real estate:
CRE non-owner occupied	$	2,445	$	435	$	—	$	—	$	—		$	—	$	—	$	—	$	—	$	—	$	—	$	2,880
CRE owner occupied	796		1,176		1,668		—		—			—		—		—		—		—		—		3,640
Multifamily	—		—		—		—		—			—		—		—		—		—		—		—
Farmland	—		—		—		—		—		—	1,538		—		—		—		—		—		1,538
Total commercial real estate loans	3,241		1,611		1,668		—		—			1,538		—		—		—		—		—		8,058
Consumer:
SFR 1-4 1st DT liens	—		—		—		—		—			—		5,068		—		—		—		—		5,068
SFR HELOCs and junior liens	—		—		—		—		—			—		1,855		2,839		—		—		—		4,694
Other	—		—		—		42		—			—		—		—		97		—		—		139
Total consumer loans	—		—		—		42		—			—		6,923		2,839		97		—		—		9,901
Commercial and industrial	—		—		—		292		—			—		—		—		—		1,173		75		1,540
Construction	—		—		—		—		—			—		4,546		—		—		—		—		4,546
Agriculture production	—		—		—		—		—			—		—		—		—		13		5		18
Leases	—		—		—		—		—			—		—		—		—		—		—		—
Total	$	3,241	$	1,611	$	1,668	$	334	$	—		$	1,538	$	11,469	$	2,839	$	97	$	1,186	$	80	$	24,063

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The CARES Act, in addition to providing financial assistance to both businesses and consumers, provides financial institutions the option to temporarily suspend certain requirements under GAAP related to troubled debt restructurings for a limited period of time to account for the effects of COVID-19. The banking regulatory agencies have likewise issued guidance encouraging financial institutions to work prudently with borrowers who are, or may be, unable to meet their contractual payment obligations because of the effects of COVID-19. That guidance, with concurrence of the Financial Accounting Standards Board and provisions of the CARES Act, allow modifications made on a good faith basis in response to COVID-19 to borrowers who were generally current with their payments prior to any relief, to not be treated as troubled debt restructurings. To the extent that such modifications meet the criteria previously described, such modifications are not expected to be classified as troubled debt restructurings. The following tables show certain information regarding TDRs that occurred during the periods indicated:

	TDR information for the three months ended June 30, 2021
(dollars in thousands)	Number	Pre-mod outstanding principal balance		Post-mod outstanding principal balance		Financial impact due to TDR taken as additional provision		Number that defaulted during the period	Recorded investment of TDRs that defaulted during the period		Financial impact due to the default of previous TDR taken as charge- offs or additional provisions
Commercial real estate:
CRE non-owner occupied	1	$	706	$	706	$	706	—	$	—	$	—
CRE owner occupied	—	—		—		—		—	—		—
Multifamily	—	—		—		—		—	—		—
Farmland	—	—		—		—		—	—		—
Total commercial real estate loans	1	706		706		706		—	—		—
Consumer:
SFR 1-4 1st DT liens	—	—		—		—		—	—		—
SFR HELOCs and junior liens	—	—		—		—		—	—		—
Other	—	—		—		—		—	—		—
Total consumer loans	—	—		—		—		—	—		—
Commercial and industrial	2	2,000		2,000		293		—	—		—
Construction	—	—		—		—		—	—		—
Agriculture production	—	—		—		—		—	—		—
Leases	—	—		—		—		—	—		—
Total	3	$	2,706	$	2,706	$	999	—	$	—	$	—

	TDR information for the three months ended June 30, 2020
(dollars in thousands)	Number	Pre-mod outstanding principal balance		Post-mod outstanding principal balance		Financial impact due to TDR taken as additional provision		Number that defaulted during the period	Recorded investment of TDRs that defaulted during the period		Financial impact due to the default of previous TDR taken as charge- offs or additional provisions
Commercial real estate:
CRE non-owner occupied	—	$	—	$	—	$	—	—	$	—	$	—
CRE owner occupied	—	—		—		—		—	—		—
Multifamily	—	—		—		—		—	—		—
Farmland	—	—		—		—		—	—		—
Total commercial real estate loans	—	—		—		—		—	—		—
Consumer:
SFR 1-4 1st DT liens	—	—		—		—		1	735		—
SFR HELOCs and junior liens	—	—		—		—		—	—		—
Other	—	—		—		—		—	—		—
Total consumer loans	—	—		—		—		1	735		—
Commercial and industrial	—	—		—		—		—	—		—
Construction	—	—		—		—		—	—		—
Agriculture production	—	—		—		—		—	—		—
Leases	—	—		—		—		—	—		—
Total	—	$	—	$	—	$	—	1	$	735	$	—

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	TDR Information for the six months ended June 30, 2021
(dollars in thousands)	Number	Pre-mod outstanding principal balance		Post-mod outstanding principal balance		Financial impact due to TDR taken as additional provision		Number that defaulted during the period	Recorded investment of TDRs that defaulted during the period		Financial impact due to the default of previous TDR taken as charge- offs or additional provisions
Commercial real estate:
CRE non-owner occupied	2	$	1,023	$	1,018	$	1,020	—	$	—	$	—
CRE owner occupied	1	740		742		742		—	—		—
Multifamily	—	—		—		—		—	—		—
Farmland	—	—		—		—		3	847		—
Total commercial real estate loans	3	1,763		1,760		1,762		3	847		—
Consumer:
SFR 1-4 1st DT liens	—	—		—		—		—	—		—
SFR HELOCs and junior liens	—	—		—		—		—	—		—
Other	—	—		—		—		—	—		—
Total consumer loans	—	—		—		—		—	—		—
Commercial and industrial	5	2,316		2,310		603		1	247		—
Construction	—	—		—		—		—	—		—
Agriculture production	—	—		—		—		—	—		—
Leases	—	—		—		—		—	—		—
Total	8	$	4,079	$	4,070	$	2,365	4	$	1,094	$	—

	TDR Information for the six months ended June 30, 2020
(dollars in thousands)	Number	Pre-mod outstanding principal balance		Post-mod outstanding principal balance		Financial impact due to TDR taken as additional provision		Number that defaulted during the period	Recorded investment of TDRs that defaulted during the period		Financial impact due to the default of previous TDR taken as charge- offs or additional provisions
Commercial real estate:
CRE non-owner occupied	1	$	257	$	251	$	—	—	$	—	$	—
CRE owner occupied	—	—		—		—		—	—		—
Multifamily	—	—		—		—		—	—		—
Farmland	2	230		298		—		—	—		—
Total commercial real estate loans	3	487		549		—		—	—		—
Consumer:
SFR 1-4 1st DT liens	—	—		—		—		2	1,037		—
SFR HELOCs and junior liens	2	172		169		—		—	—		—
Other	—	—		—		—		—	—		—
Total consumer loans	2	172		169		—		2	1,037		—
Commercial and industrial	1	21		20		21		—	—		—
Construction	—	—		—		—		—	—		—
Agriculture production	—	—		—		—		—	—		—
Leases	—	—		—		—		—	—		—
Total	6	$	680	$	738	$	21	2	$	1,037	$	—

The Company also modified the terms of select loans in an effort to assist borrowers that were not related to the COVID-19 pandemic. If the borrower was experiencing financial difficulty and a concession was granted, the Company considered such modifications as troubled debt restructurings. Modifications classified as TDRs can include one or a combination of the following: rate modifications, term extensions, interest only modifications, either temporary or long-term, payment modifications, and collateral substitutions/additions. The objective of the modifications was to increase loan repayments by customers and thereby reduce net charge-offs. The modified loans are included in impaired loans for purposes of determining the level of the allowance for credit losses.

For all new TDRs, an impairment analysis is conducted. If the loan is determined to be collateral dependent, any additional amount of impairment will be calculated based on the difference between estimated collectible value and the current carrying balance of the loan. This difference could result in an increased provision and is typically charged off. If the asset is determined not to be collateral dependent, the impairment is measured on the net present value difference between the expected cash flows of the restructured loan and the cash flows which would have been received under the original terms. The effect of this could result in a requirement for additional provision to the

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reserve. The effect of these required provisions for the period are indicated above.

Typically if a TDR defaults during the period, the loan is then considered collateral dependent and, if it was not already considered collateral dependent, an appropriate provision will be reserved or charge will be taken. The additional provisions required resulting from default of previously modified TDR’s are noted above. Loans that defaulted within the twelve month period subsequent to modification were not considered significant for financial reporting purposes.

Note 5 - Leases

The Company records a right-of-use asset (“ROUA”) on the consolidated balance sheets for those leases that convey rights to control use of identified assets for a period of time in exchange for consideration. The Company also records a lease liability on the consolidated balance sheets for the present value of future payment commitments. All of the Company’s leases are comprised of operating leases in which the Company is lessee of real estate property for branches, ATM locations, and general administration and operations. The Company has elected not to include short-term leases (i.e. leases with initial terms of 12 month or less) within the ROUA and lease liability. Known or determinable adjustments to the required minimum future lease payments were included in the calculation of the Company’s ROUA and lease liability. Adjustments to the required minimum future lease payments that are variable and will not be determinable until a future period, such as changes in the consumer price index, are included as variable lease costs. Additionally, expected variable payments for common area maintenance, taxes and insurance were unknown and not determinable at lease commencement and therefore, were not included in the determination of the Company’s ROUA or lease liability.

The value of the ROUA and lease liability is impacted by the amount of the periodic payment required, length of the lease term, and the discount rate used to calculate the present value of the minimum lease payments. The Company’s lease agreements often include one or more options to renew at the Company’s discretion. If at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROU asset and lease liability. Topic 842 requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term. The lease liability is reduced based on the discounted present value of remaining payments as of each reporting period. The ROUA value is measured using the amount of lease liability and adjusted for prepaid or accrued lease payments, remaining lease incentives, unamortized direct costs (if any), and impairment (if any).

The following table presents the components of lease expense for the periods ended:

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2021		2020		2021		2020
Operating lease cost	$	1,267	$	1,291	$	2,526	$	2,586
Short-term lease cost	61		65		122		128
Variable lease cost	(1)		1		(3)		6
Sublease income	(11)		(35)		(24)		(69)
Total lease cost	$	1,316	$	1,322	$	2,621	$	2,651

The following table presents supplemental cash flow information related to leases for the periods ended:

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2021		2020		2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	1,226	$	1,243	$	2,430	$	2,480
ROUA obtained in exchange for operating lease liabilities	$	—	$	675	$	1,308	$	4,068

The following table presents the weighted average operating lease term and discount rate as of the period ended:

	June 30,
	2021		2020
Weighted-average remaining lease term (years)	9.8		10.3
Weighted-average discount rate	3.03	%	3.17	%

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At June 30, 2021, future expected operating lease payments are as follows:

(in thousands)
Periods ending December 31,
2021	$	2,252
2022	4,295
2023	3,624
2024	3,352
2025	2,891
Thereafter	14,925
	31,339
Discount for present value of expected cash flows	(4,632)
Lease liability at June 30, 2021	$	26,707

Note 6 - Deposits

A summary of the balances of deposits follows:

(in thousands)	June 30, 2021		December 31, 2020
Noninterest-bearing demand	$	2,843,783	$	2,581,517
Interest-bearing demand	1,486,321		1,414,908
Savings	2,337,557		2,164,942
Time certificates, $250,000 or more	59,589		73,147
Other time certificates	264,803		271,420
Total deposits	$	6,992,053	$	6,505,934

Certificate of deposit balances of $10,000,000 from the State of California were included in time certificates, over $250,000, at June 30, 2021 and December 31, 2020, respectively. The Company participates in a deposit program offered by the State of California whereby the State may make deposits at the Company’s request subject to collateral and credit worthiness constraints. The negotiated rates on these State deposits are generally more favorable than other wholesale funding sources available to the Company. Overdrawn deposit balances of $916,000 and $985,000 were classified as consumer loans at June 30, 2021 and December 31, 2020, respectively.

Note 7 - Commitments and Contingencies

The following table presents a summary of the Bank’s commitments and contingent liabilities:

(in thousands)	June 30, 2021		December 31, 2020
Financial instruments whose amounts represent risk:
Commitments to extend credit:
Commercial loans	$	426,278	$	462,422
Consumer loans	566,332		534,223
Real estate mortgage loans	274,339		202,306
Real estate construction loans	207,741		227,876
Standby letters of credit	14,112		15,056
Deposit account overdraft privilege	112,993		110,813

Note 8 - Shareholders’ Equity

Dividends Paid

The Bank paid to the Company cash dividends in the aggregate amounts of $8,367,000 and $12,694,000 during the three months ended June 30, 2021 and 2020, respectively, and $16,139,000 and $39,448,000 during the six months ended June 30, 2021 and 2020,

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respectively. The Bank is regulated by the Federal Deposit Insurance Corporation (FDIC) and the State Department of Financial Protection and Innovation (DFPI). Absent approval from the Commissioner of the DFPI, California banking laws generally limit the Bank’s ability to pay dividends to the lesser of (1) retained earnings or (2) net income for the last three fiscal years, less cash distributions paid during such period.

Stock Repurchase Plan

On February 25, 2021 the Board of Directors approved the authorization to repurchase up to 2,000,000 shares of the Company's common stock (the 2021 Repurchase Plan), which approximated 6.7% of the shares outstanding as of the approval date. The actual timing of any share repurchases will be determined by the Company's management and therefore the total value of the shares to be purchased under the program is subject to change. The 2021 Repurchase Plan has no expiration date (in accordance with applicable laws and regulations) and during the three and six month periods June 30, 2021, the Company repurchased 45,354 shares with a market value of $2,101,000, respectively.

In connection with approval of the 2021 Repurchase Plan, the Company’s previous repurchase program adopted on November 12, 2019 (the 2019 Repurchase Plan) was terminated. Under the 2019 Repurchase Plan, during the three months ended March 31, 2021, the Company repurchased 223 shares with a market value of approximately $8,000. The Company repurchased 858,717 shares during 2020.

Stock Repurchased Under Equity Compensation Plans

The Company's shareholder-approved equity compensation plans permit employees to tender recently vested shares in lieu of cash for the payment of exercise price, if applicable, and the tax withholding on such shares. During the three months ended June 30, 2021 and 2020, employees tendered zero shares, respectively, of the Company’s common stock in connection with option exercises. During the six months ended June 30, 2021 and 2020, employees tendered zero and 4,668 shares, respectively, of the Company’s common stock in connection with option exercises. Employees also tendered 9,660 and 11,306 shares in connection with the tax withholding requirements of other share based awards during the three months ended June 30, 2021 and 2020, respectively, and 9,730 and 11,439 during the six months ended June 30, 2021 and 2020, respectively. In total, shares of the Company's common stock tendered had market values of $450,000 and $346,000 during the quarters ended June 30, 2021 and 2020, respectively, and $452,000 and $494,000 during the year to date periods June 30, 2021 and 2020, respectively. The tendered shares were retired. The market value of tendered shares is the last market trade price at closing on the day an option is exercised or the other share based award vests. Stock repurchased under equity incentive plans are not included in the total of stock repurchased under the 2021 or 2019 Stock Repurchase Plans.

Note 9 - Stock Options and Other Equity-Based Incentive Instruments

On April 16, 2019, the Board of Directors adopted the 2019 Equity Incentive Plan (2019 Plan) which was approved by shareholders on May 21, 2019. The 2019 Plan allows for up to 1,500,000 shares to be issued in connection with equity-based incentives. The Company’s 2009 Equity Incentive Plan (2009 Plan) expired on March 26, 2019. While no new awards can be granted under the 2009 Plan, existing grants continue to be governed by the terms, conditions and procedures set forth in any applicable award agreement.

Stock option activity during the six months ended June 30, 2021 is summarized in the following table:

	Number of Shares	Weighted Average Exercise Price
Outstanding at December 31, 2020	128,500	$	17.72
Options granted	—	—
Options exercised	(1,675)	16.59
Options forfeited	—	—
Outstanding at June 30, 2021	126,825	$	17.74

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The following table shows the number, weighted-average exercise price, intrinsic value, and weighted average remaining contractual life of options exercisable, options not yet exercisable and total options outstanding as of June 30, 2021:

	Currently Exercisable		Currently Not Exercisable		Total Outstanding
Number of options	126,825		—		126,825
Weighted average exercise price	$	17.74	$	—	$	17.74
Intrinsic value (in thousands)	$	3,763	$	—	$	3,763
Weighted average remaining contractual term (yrs.)	1.5		0.0		1.5

As of June 30, 2021 all options outstanding are fully vested and are expected to be exercised prior to expiration. The Company did not modify any option grants during 2020 or the six months ended June 30, 2021.

Activity related to restricted stock unit awards during the six months ended June 30, 2021 is summarized in the following table:

	Service Condition Vesting RSUs	Market Plus Service Condition Vesting RSUs
Outstanding at December 31, 2020	99,809	81,615
RSUs granted	47,029	31,479
RSUs added through dividend and performance credits	1,090	—
RSUs released	(42,712)	—
RSUs forfeited/expired	(114)	(75)
Outstanding at June 30, 2021	105,102	113,019

The 105,102 of service condition vesting RSUs outstanding as of June 30, 2021 include a feature whereby each RSU outstanding is credited with a dividend amount equal to any common stock cash dividend declared and paid, and the credited amount is divided by the closing price of the Company’s stock on the dividend payable date to arrive at an additional amount of RSUs outstanding under the original grant. The dividend credits follow the same vesting requirements as the RSU awards and are not considered participating securities. The 105,102 of service condition vesting RSUs outstanding as of June 30, 2021 are expected to vest, and be released, on a weighted-average basis, over the next 2.7 years. The Company expects to recognize $3,894,000 of pre-tax compensation costs related to these service condition vesting RSUs between June 30, 2021 and their vesting dates. The Company did not modify any service condition vesting RSUs during 2020 or during the six months ended June 30, 2021.

The 113,019 of market plus service condition vesting RSUs outstanding as of June 30, 2021 are expected to vest, and be released, on a weighted-average basis, over the next 2.4 years. The Company expects to recognize $2,106,000 of pre-tax compensation costs related to these RSUs between June 30, 2021 and their vesting dates. As of June 30, 2021, the number of market plus service condition vesting RSUs outstanding that will actually vest, and be released, may be reduced to zero or increased to 169,529 depending on the total return of the Company’s common stock versus the total return of an index of bank stocks from the grant date to the vesting date. The Company did not modify any market plus service condition vesting RSUs during 2020 or during the six months ended June 30, 2021.

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Note 10 - Non-interest Income and Expense

The following table summarizes the Company’s non-interest income for the periods indicated:

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2021		2020		2021		2020
ATM and interchange fees	$	6,558	$	5,165	$	12,419	$	10,276
Service charges on deposit accounts	3,462		3,046		6,731		7,092
Other service fees	914		734		1,785		1,492
Mortgage banking service fees	467		459		930		928
Change in value of mortgage servicing rights	(471)		(1,236)		(459)		(2,494)
Total service charges and fees	10,930		8,168		21,406		17,294
Increase in cash value of life insurance	745		710		1,418		1,430
Asset management and commission income	947		661		1,781		1,577
Gain on sale of loans	2,847		1,736		6,094		2,627
Lease brokerage income	249		127		359		320
Sale of customer checks	116		88		235		212
Gain on sale of investment securities	—		—		—		—
Gain (loss) on marketable equity securities	8		25		(45)		72
Other	115		142		819		(55)
Total other non-interest income	5,027		3,489		10,661		6,183
Total non-interest income	$	15,957	$	11,657	$	32,067	$	23,477

The components of non-interest expense were as follows:

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2021		2020		2021		2020
Base salaries, net of deferred loan origination costs	$	17,537	$	17,277	$	33,048	$	34,900
Incentive compensation	4,322		2,395		7,902		5,496
Benefits and other compensation costs	5,222		7,383		11,461		13,931
Total salaries and benefits expense	27,081		27,055		52,411		54,327
Occupancy	3,700		3,398		7,426		7,273
Data processing and software	3,201		3,657		6,403		7,024
Equipment	1,207		1,350		2,724		2,862
Intangible amortization	1,431		1,431		2,862		2,862
Advertising	734		531		1,114		1,196
ATM and POS network charges	1,551		1,210		2,797		2,583
Professional fees	1,046		741		1,640		1,444
Telecommunications	564		639		1,145		1,364
Regulatory assessments and insurance	618		360		1,230		455
Postage	124		283		322		573
Operational losses	212		184		421		405
Courier service	288		337		582		668
Gain on sale or acquisition of foreclosed assets	(15)		(16)		(66)		(57)
(Gain) loss on disposal of fixed assets	(426)		15		(426)		15
Other miscellaneous expense	2,855		4,375		5,204		7,306
Total other non-interest expense	17,090		18,495		33,378		35,973
Total non-interest expense	$	44,171	$	45,550	$	85,789	$	90,300

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Note 11 - Earnings Per Share

Basic earnings per share represent income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustments to income that would result from assumed issuance. Potential common shares that may be issued by the Company relate to outstanding stock options and restricted stock units (RSUs), and are determined using the treasury stock method. Earnings per share have been computed based on the following:

	Three months ended June 30,
(in thousands)	2021		2020
Net income	$	28,362	$	7,430
Average number of common shares outstanding	29,719		29,754
Effect of dilutive stock options and restricted stock	185		129
Average number of common shares outstanding used to calculate diluted earnings per share	29,904		29,883
Options excluded from diluted earnings per share because of their antidilutive effect	—		—

	Six months ended June 30,
(in thousands)	2021		2020
Net income	$	62,011	$	23,551
Average number of common shares outstanding	29,723		30,074
Effect of dilutive stock options and restricted stock	181		129
Average number of common shares outstanding used to calculate diluted earnings per share	29,904		30,203
Options excluded from diluted earnings per share because of their antidilutive effect	—		—

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Note 12 – Comprehensive Income (Loss)

Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities, are reported as a separate component of the equity section of the balance sheet identified as accumulated other comprehensive income (AOCI), such items, along with net income, are components of other comprehensive income (loss) (OCI).

The components of other comprehensive income and related tax effects are as follows:

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2021		2020		2021		2020
Unrealized holding losses on available for sale securities before reclassifications	$	7,392	$	34,959	$	(4,945)	$	5,398
Amounts reclassified out of AOCI:
Realized gain on debt securities	—		—		—		—
Unrealized holding losses on available for sale securities after reclassifications	7,392		34,959		(4,945)		5,398
Tax effect	(2,186)		(10,334)		1,461		(1,595)
Unrealized holding losses on available for sale securities, net of tax	5,206		24,625		(3,484)		3,803
Change in unfunded status of the supplemental retirement plans before reclassifications	(49)		661		(98)		1,109
Amounts reclassified out of AOCI:
Amortization of prior service cost	(15)		(13)		(29)		(27)
Amortization of actuarial losses	64		478		127		956
Total amounts reclassified out of accumulated other comprehensive income	49		465		98		929
Change in unfunded status of the supplemental retirement plans after reclassifications	—		1,126		—		2,038
Tax effect	—		—		—		—
Change in unfunded status of the supplemental retirement plans, net of tax	—		1,126		—		2,038
Change in joint beneficiary agreement liability before reclassifications	—		—		(629)		—
Tax effect	—		—		—		—
Change in joint beneficiary agreement liability before reclassifications, net of tax	—		—		(629)		—
Total other comprehensive income (loss)	$	5,206	$	25,751	$	(4,113)	$	5,841

The components of accumulated other comprehensive income, included in shareholders’ equity, are as follows:

(in thousands)	June 30, 2021		December 31, 2020
Net unrealized gain on available for sale securities	$	14,238	$	19,183
Tax effect	(4,210)		(5,671)
Unrealized holding gain on available for sale securities, net of tax	10,028		13,512
Unfunded status of the supplemental retirement plans	(1,294)		(1,294)
Tax effect	382		382
Unfunded status of the supplemental retirement plans, net of tax	(912)		(912)
Joint beneficiary agreement liability	(949)		(320)
Tax effect	—		—
Joint beneficiary agreement liability, net of tax	(949)		(320)
Accumulated other comprehensive income	$	8,167	$	12,280

Note 13 - Fair Value Measurement

The Company utilizes fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. In estimating fair value, the Company utilizes valuation techniques that are consistent with the market approach, income approach, and/or the cost approach. Inputs to valuation techniques include the assumptions that market participants would use in pricing an asset or liability including assumptions about the risk inherent in a particular valuation technique, the effect of a restriction on the sale

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or use of an asset and the risk of nonperformance. Marketable equity securities, debt securities available-for-sale, loans held for sale, and mortgage servicing rights are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets on a nonrecurring basis, such loans held for investment and certain other assets. These nonrecurring fair value adjustments typically involve application impairment write-downs of individual assets.

The Company groups assets and liabilities at fair value in three levels, based on the markets in which the assets and liabilities are traded and the observable nature of the assumptions used to determine fair value. These levels are:

Level 1 - Valuation is based upon quoted prices for identical instruments traded in active markets.

Level 2 - Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market.

Level 3 - Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques.

Marketable equity securities and debt securities available for sale - Marketable equity securities and debt securities available for sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange, U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets and money market funds. Level 2 securities include mortgage-backed securities issued by government sponsored entities, municipal bonds and corporate debt securities. The Company had no securities classified as Level 3 during any of the periods covered in these financial statements.

Loans held for sale - Loans held for sale are carried at the lower of cost or fair value. The fair value of loans held for sale is based on what secondary markets are currently offering for loans with similar characteristics. As such, we classify those loans subjected to recurring fair value adjustments as Level 2.

Individually evaluated loans - Loans are not recorded at fair value on a recurring basis. However, from time to time, certain loans have individual risk characteristics not consistent with a pool of loans and is individually evaluated for credit reserves. Loans for which it is probable that payment of interest and principal will not be made in accordance with the original contractual terms of the loan agreement are typically individually evaluated. The fair value of these loans are estimated using one of several methods, including collateral value, fair value of similar debt, enterprise value, liquidation value and discounted cash flows. Those loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. Loans where an allowance is established based on the fair value of collateral require classification in the fair value hierarchy. When the fair value of the collateral is based on an observable market price or a current appraised value which uses substantially observable data, the Company records the loan as nonrecurring Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value, or the appraised value contains a significant unobservable assumption, such as deviations from comparable sales, and there is no observable market price, the Company records the loan as nonrecurring Level 3.

Foreclosed assets - Foreclosed assets include assets acquired through, or in lieu of, loan foreclosure. Foreclosed assets are held for sale and are initially recorded at fair value at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, management periodically performs valuations and the assets are carried at the lower of carrying amount or fair value less cost to sell. When the fair value of foreclosed assets is based on an observable market price or a current appraised value which uses substantially observable data, the Company records the loan as nonrecurring Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value, or the appraised value contains a significant unobservable assumption, such as deviations from comparable sales, and there is no observable market price, the Company records the foreclosed asset as nonrecurring Level 3. Revenue and expenses from operations and changes in the valuation allowance are included in other non-interest expense.

Mortgage servicing rights - Mortgage servicing rights are carried at fair value. A valuation model, which utilizes a discounted cash flow analysis using a discount rate and prepayment speed assumptions is used in the computation of the fair value measurement. While the prepayment speed assumption is currently quoted for comparable instruments, the discount rate assumption currently requires a significant degree of management judgment and is therefore considered an unobservable input. As such, the Company classifies mortgage servicing rights subjected to recurring fair value adjustments as Level 3.

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The table below presents the recorded amount of assets and liabilities measured at fair value on a recurring basis (in thousands):

Fair value at June 30, 2021	Total		Level 1		Level 2		Level 3
Marketable equity securities	$	2,979	$	2,979	$	—	$	—
Debt securities available for sale:
Obligations of U.S. government corporations and agencies	1,133,416		—		1,133,416		—
Obligations of states and political subdivisions	146,924		—		146,924		—
Corporate bonds	2,556		—		2,556		—
Asset backed securities	564,672		—		564,672		—
Loans held for sale	5,723		—		5,723		—
Mortgage servicing rights	5,603		—		—		5,603
Total assets measured at fair value	$	1,861,873	$	2,979	$	1,853,291	$	5,603

Fair value at December 31, 2020	Total		Level 1		Level 2		Level 3
Marketable equity securities	$	3,025	$	3,025	$	—	$	—
Debt securities available for sale:
Obligations of U.S. government corporations and agencies	812,374		—		812,374		—
Obligations of states and political subdivisions	129,095		—		129,095		—
Corporate bonds	2,544		—		2,544		—
Asset backed securities	470,251		—		470,251		—
Loans held for sale	6,268		—		6,268		—
Mortgage servicing rights	5,092		—		—		5,092
Total assets measured at fair value	$	1,428,649	$	3,025	$	1,420,532	$	5,092

Transfers between levels of the fair value hierarchy are recognized on the actual date of the event or circumstances that caused the transfer, which generally corresponds with the Company’s quarterly valuation process. There were no transfers between any levels during the six months ended June 30, 2021, or the year ended December 31, 2020.

The following table provides a reconciliation of assets and liabilities measured at fair value using significant unobservable inputs (Level 3) on a recurring basis during the time periods indicated. Had there been any transfer into or out of Level 3 during the time periods indicated, the amount included in the “Transfers into (out of) Level 3” column would represent the beginning balance of an item in the period (interim quarter) during which it was transferred (in thousands):

Three months ended June 30,	Beginning Balance		Transfers into (out of) Level 3	Change Included in Earnings		Issuances		Ending Balance
2021: Mortgage servicing rights	$	5,607	—	$	(471)	$	467	$	5,603
2020: Mortgage servicing rights	$	5,168	—	$	(1,236)	$	318	$	4,250

Six months ended June 30,	Beginning Balance		Transfers into (out of) Level 3	Change Included in Earnings		Issuances		Ending Balance
2021: Mortgage servicing rights	$	5,092	—	$	(459)	$	970	$	5,603
2020: Mortgage servicing rights	$	6,200	—	$	(2,494)	$	544	$	4,250

The key unobservable inputs used in determining the fair value of mortgage servicing rights are mortgage prepayment speeds and the discount rate used to discount cash projected cash flows. Generally, any significant increases in the mortgage prepayment speed and discount rate utilized in the fair value measurement of the mortgage servicing rights will result in a negative fair value adjustments (and decrease in the fair value measurement). Conversely, a decrease in the mortgage prepayment speed and discount rate will result in a positive fair value adjustment (and increase in the fair value measurement).

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The following table presents quantitative information about recurring Level 3 fair value measurements at June 30, 2021 and December 31, 2020:

As of June 30, 2021:	Fair Value (in thousands)		Valuation Technique	Unobservable Inputs	Range, Weighted Average
Mortgage Servicing Rights	$	5,603	Discounted cash flow	Constant prepayment rate	12% - 17%; 14.2%
				Discount rate	10% - 14%; 12%
As of December 31, 2020:
Mortgage Servicing Rights	$	5,092	Discounted cash flow	Constant prepayment rate	14% - 20.0%; 17.6%
				Discount rate	10% - 14%; 12%

The tables below present the recorded investment in assets and liabilities measured at fair value on a nonrecurring basis, as of the dates indicated (in thousands):

June 30, 2021	Total		Level 1		Level 2		Level 3		Total Gains (Losses)
Fair value:
Individually evaluated loans	$	4,912	—		—		$	4,912	$	(1,604)
Foreclosed assets	123		—		—		123		21
Total assets measured at fair value	$	5,035	$	—	$	—	$	5,035	$	(1,583)

December 31, 2020	Total		Level 1	Level 2	Level 3		Total Gains (Losses)
Fair value:
Individually evaluated loans	$	1,424	—	—	$	1,424	$	(1,489)
Foreclosed assets	979		—	—	979		155
Total assets measured at fair value	$	2,403	—	—	$	2,403	$	(1,334)

June 30, 2020	Total		Level 1	Level 2	Level 3		Total Losses
Fair value:
Individually evaluated loans	$	162	—	—	$	162	$	(16)

The individually evaluated loan amounts above represent collateral dependent loans that have been adjusted to fair value. When the Company identifies a collateral dependent loan with unique risk characteristics, the Company evaluates the need for an allowance using the current fair value of the collateral, less selling costs. Depending on the characteristics of a loan, the fair value of collateral is generally estimated by obtaining external appraisals. If the Company determines that the value of the loan is less than the recorded investment in the loan, the Company recognizes this impairment and adjust the carrying value of the loan to fair value through the allowance for credit losses. The loss represents charge-offs or impairments on collateral dependent loans for fair value adjustments based on the fair value of collateral. The carrying value of loans fully charged-off is zero.

The foreclosed assets amount above represents impaired real estate that has been adjusted to fair value. Foreclosed assets represent real estate which the Company has taken control of in partial or full satisfaction of loans. At the time of foreclosure, other real estate owned is recorded at fair value less costs to sell, which becomes the property’s new basis. Any write-downs based on the asset’s fair value at the date of acquisition are charged to the allowance for credit losses. After foreclosure, management periodically performs valuations such that the real estate is carried at the lower of its new cost basis or fair value, net of estimated costs to sell. Fair value adjustments on other real estate owned are recognized within net loss on real estate owned. The loss represents impairments on real estate owned for fair value adjustments based on the fair value of the real estate.

The Company’s property appraisals are primarily based on the sales comparison approach and income approach methodologies, which consider recent sales of comparable properties, including their income generating characteristics, and then make adjustments to reflect the general assumptions that a market participant would make when analyzing the property for purchase. These adjustments may increase or decrease an appraised value and can vary significantly depending on the location, physical characteristics and income producing potential of each property. Additionally, the quality and volume of market information available at the time of the appraisal can vary from period to period and cause significant changes to the nature and magnitude of comparable sale adjustments. Given these variations, comparable sale adjustments are generally not a reliable indicator for how fair value will increase or decrease from period to period. Under certain circumstances, management discounts are applied based on specific characteristics of an individual property.

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The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis at June 30, 2021:

June 30, 2021	Fair Value (in thousands)		Valuation Technique	Unobservable Inputs	Range, Weighted Average
Individually evaluated loans	$	4,912	Sales comparison approach Income approach	Adjustment for differences between comparable sales Capitalization rate	Not meaningful N/A
Foreclosed assets (Residential real estate)	$	123	Sales comparison approach	Adjustment for differences between comparable sales	Not meaningful N/A

The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis at December 31, 2020:

December 31, 2020	Fair Value (in thousands)		Valuation Technique	Unobservable Inputs	Range, Weighted Average
Individually evaluated loans	$	1,424	Sales comparison approach Income approach	Adjustment for differences between comparable sales Capitalization rate	Not meaningful N/A
Foreclosed assets (Residential real estate)	$	979	Sales comparison approach	Adjustment for differences between comparable sales	Not meaningful N/A

Fair values for financial instruments are management’s estimates of the values at which the instruments could be exchanged in a transaction between willing parties. The Company uses the exit price notion when measuring the fair value of financial instruments. These estimates are subjective and may vary significantly from amounts that would be realized in actual transactions. In addition, other significant assets are not considered financial assets including, any mortgage banking operations, deferred tax assets, and premises and equipment. Further, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on the fair value estimates and have not been considered in any of these estimates.

	June 30, 2021				December 31, 2020
(in thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets:
Level 1 inputs:
Cash and due from banks	$	86,052	$	86,052	$	77,253	$	77,253
Cash at Federal Reserve and other banks	553,688		553,688		592,298		592,298
Level 2 inputs:
Securities held to maturity	235,778		247,019		284,563		298,726
Restricted equity securities	17,250		N/A		17,250		N/A
Level 3 inputs:
Loans, net	4,870,278		4,875,176		4,671,280		4,753,027
Financial liabilities:
Level 2 inputs:
Deposits	6,992,053		6,998,976		6,505,934		6,507,235
Other borrowings	40,559		40,559		26,914		26,914
Level 3 inputs:
Junior subordinated debt	57,852		57,795		57,635		56,632

(in thousands)	Contract Amount		Fair Value		Contract Amount		Fair Value
Off-balance sheet:
Level 3 inputs:
Commitments	$	1,474,690	$	14,747	$	1,426,827	$	14,268
Standby letters of credit	14,112		141		15,056		151
Overdraft privilege commitments	112,993		1,129		110,813		1,108

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Note 14 - Regulatory Matters

The Company is subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company must meet specific capital guidelines that involve quantitative measures of the Company’s assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Company to maintain minimum amounts and ratios (set forth in the table below) of total, Tier 1, and common equity Tier 1 capital to risk-weighted assets, and of Tier 1 capital to average assets. The following tables present actual and required capital ratios as of June 30, 2021 and December 31, 2020 for the Company and the Bank under applicable Basel III Capital Rules. The minimum capital amounts presented include the minimum required capital levels as of June 30, 2021 and December 31, 2020 based on the then phased-in provisions of the Basel III Capital Rules. Capital levels required to be considered well capitalized are based upon prompt corrective action regulations, as amended to reflect the changes under the Basel III Capital Rules.

	Actual				Required for Capital Adequacy Purposes				Required to be Considered Well Capitalized
As of June 30, 2021:	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(dollars in thousands)
Total Capital (to Risk Weighted Assets):
Consolidated	$	846,617	15.31	%	$	580,463	10.50	%	N/A		N/A
Tri Counties Bank	$	835,709	15.12	%	$	580,270	10.50	%	$	552,638	10.00	%
Tier 1 Capital (to Risk Weighted Assets):
Consolidated	$	777,241	14.06	%	$	469,899	8.50	%	N/A		N/A
Tri Counties Bank	$	766,377	13.87	%	$	469,743	8.50	%	$	442,111	8.00	%
Common equity Tier 1 Capital (to Risk Weighted Assets):
Consolidated	$	721,126	13.04	%	$	386,975	7.00	%	N/A		N/A
Tri Counties Bank	$	766,377	13.87	%	$	386,847	7.00	%	$	359,215	6.50	%
Tier 1 Capital (to Average Assets):
Consolidated	$	777,241	9.85	%	$	315,578	4.00	%	N/A		N/A
Tri Counties Bank	$	766,377	9.72	%	$	315,261	4.00	%	$	394,076	5.00	%

	Actual				Required for Capital Adequacy Purposes				Required to be Considered Well Capitalized
As of December 31, 2020:	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(dollars in thousands)
Total Capital (to Risk Weighted Assets):
Consolidated	$	793,433	15.22	%	$	547,352	10.50	%	N/A		N/A
Tri Counties Bank	$	780,320	14.97	%	$	547,156	10.50	%	$	521,101	10.00	%
Tier 1 Capital (to Risk Weighted Assets):
Consolidated	$	727,879	13.96	%	$	443,094	8.50	%	N/A		N/A
Tri Counties Bank	$	714,811	13.72	%	$	442,936	8.50	%	$	416,881	8.00	%
Common equity Tier 1 Capital (to Risk Weighted Assets):
Consolidated	$	671,975	12.89	%	$	364,901	7.00	%	N/A		N/A
Tri Counties Bank	$	714,811	13.72	%	$	364,771	7.00	%	$	338,716	6.50	%
Tier 1 Capital (to Average Assets):
Consolidated	$	727,879	9.93	%	$	293,138	4.00	%	N/A		N/A
Tri Counties Bank	$	714,811	9.76	%	$	292,949	4.00	%	$	366,186	5.00	%

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As of June 30, 2021 and December 31, 2020, capital levels at the Company and the Bank exceed all capital adequacy requirements under the Basel III Capital Rules. Also, at June 30, 2021 and December 31, 2020, the Bank’s capital levels exceeded the minimum amounts necessary to be considered well capitalized under the current regulatory framework for prompt corrective action.

The Basel III Capital Rules require for all banking organizations to maintain a capital conservation buffer above the minimum risk-based capital requirements in order to avoid certain limitations on capital distributions, stock repurchases and discretionary bonus payments to executive officers. The capital conservation buffer is exclusively composed of common equity tier 1 capital, and it applies to each of the risk-based capital ratios but not the leverage ratio. At June 30, 2021, the Company and the Bank are in compliance with the capital conservation buffer requirement.

Note 15 - Subsequent Events

On July 27, 2021, the Company entered into an Agreement and Plan of Merger and Reorganization (the “Merger Agreement”) with Valley Republic Bancorp, a California corporation (“Valley”), providing for the merger of Valley with and into the Company, with the Company as the surviving corporation. The Merger Agreement contemplates that immediately after the Merger, Valley Republic Bank, a California state-chartered bank and wholly-owned subsidiary of Valley, will merge with and into Tri Counties Bank, a California state-chartered bank and wholly-owned subsidiary of the Company, with Tri Counties Bank as the surviving bank (the “Bank Merger”). The Merger Agreement was adopted and unanimously approved by the Board of Directors of each of the Company and Valley. As of June 30, 2021, Valley had a total asset size of approximately $1.36 billion. The transaction, subject to customary regulatory approvals, is expected to close during the fourth quarter of 2021.

Item 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations

FORWARD-LOOKING STATEMENTS

Cautionary Statements Regarding Forward-Looking Information

The statements contained herein that are not historical facts are forward-looking statements based on management’s current expectations and beliefs concerning future developments and their potential effects on the Company. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond our control. There can be no assurance that future developments affecting us will be the same as those anticipated by management. We caution readers that a number of important factors could cause actual results to differ materially from those expressed in, or implied or projected by, such forward-looking statements. These risks and uncertainties include, but are not limited to, the following: the strength of the United States economy in general and the strength of the local economies in which we conduct operations; the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; inflation, interest rate, market and monetary fluctuations; the impact of changes in financial services policies, laws and regulations; technological changes; weather, natural disasters and other catastrophic events that may or may not be caused by climate change and their effects on economic and business environments in which the Company operates; the continuing adverse impact on the U.S. economy, including the markets in which we operate, due to the length, severity, magnitude and duration of the COVID-19 global pandemic, and the impact of a slowing U.S. economy and increased unemployment on the performance of our loan portfolio, the market value of our investment securities, the availability of sources of funding and the demand for our products; the costs or effects of mergers, acquisitions or dispositions we may make, such as our pending acquisition of Valley Republic Bancorp, including, without limitation, the failure to achieve the expected revenue growth and/or expense savings from such acquisitions, and/or the failure to effectively integrate an acquisition target into our operations; the possibility that the merger between us and Valley will not close when expected or at all because required regulatory, shareholder, or other approvals are not received or other conditions to the closing are not satisfied on a timely basis or at all, or are obtained subject to conditions that are not anticipated (and the risk that required regulatory approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the proposed transaction); the occurrence of any event, change, or other circumstances that could give rise to the right of one or both of the parties to terminate the definitive merger agreement between the Company and Valley; the risk that any announcements relating to the merger could have adverse effects on the market price of the common stock of either or both parties to the transaction; changes in the economy, which could materially impact credit quality trends and the ability to generate loans and gather deposits, including the pace of the recovery following the COVID-19 pandemic; the ability of us to execute our business plan in new lending markets; the future operating or financial performance of the Company, including our outlook for future growth, changes in the level of our nonperforming assets and charge-offs; the appropriateness of the allowance for credit losses including the timing and effects of the implementation of the current expected credit losses model; any deterioration in values of California real estate, both residential and commercial; the effect of changes in accounting standards and practices; possible other-than-temporary impairment of securities held by us; changes in consumer spending, borrowing and savings habits; our ability to attract deposits and other sources of liquidity; changes in the financial performance and/or condition of our borrowers; our noninterest expense and the efficiency ratio; competition and innovation with respect to financial products and services by banks, financial institutions and non-traditional providers including retail businesses and technology companies; the challenges of integrating and retaining key employees; the costs and effects of litigation and of unexpected or adverse outcomes in such litigation; a failure in or breach of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber-attacks and the cost to defend against such attacks; the effect of a fall in stock market prices on our brokerage and wealth management businesses; and our ability to

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manage the risks involved in the foregoing. Additional factors that could cause results to differ materially from those described above can be found under "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2020, which is on file with the Securities and Exchange Commission (the “SEC”) and available in the “Investor Relations” section of our website, https://www.tcbk.com/investor-relations and in other documents we file with the SEC. Annualized, pro forma, projections and estimates are not forecasts and may not reflect actual results.

General

As TriCo Bancshares (referred to in this report as “we”, “our” or the “Company”) has not commenced any business operations independent of Tri Counties Bank (the “Bank”), the following discussion pertains primarily to the Bank. Average balances, including such balances used in calculating certain financial ratios, are generally comprised of average daily balances for the Company. Within Management’s Discussion and Analysis of Financial Condition and Results of Operations, interest income, net interest income, net interest yield, and efficiency ratio are generally presented on a fully tax-equivalent (“FTE”) basis. The Company believes the use of these non-generally accepted accounting principles (non-GAAP) measures provides additional clarity in assessing its results, and the presentation of these measures on a FTE basis is a common practice within the banking industry. Interest income and net interest income are shown on a non-FTE basis in the Part I - Financial Information section of this Form 10-Q, and a reconciliation of the FTE and non-FTE presentations is provided below in the discussion of net interest income.

Critical Accounting Policies and Estimates

The Company’s discussion and analysis of its financial condition and results of operations are based upon the Company’s consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, the Company evaluates its estimates, including those that materially affect the financial statements and are related to the adequacy of the allowance for loan losses, investments, mortgage servicing rights, fair value measurements, retirement plans and intangible assets. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. A detailed discussion related to the Company’s accounting policies including those related to estimates on the allowance for loan losses, other than temporary impairment of investments and impairment of intangible assets, can be found in Note 1 of the consolidated financial statements included in the Company’s annual report on Form 10-K for the year ended December 31, 2020.

Geographical Descriptions

For the purpose of describing the geographical location of the Company’s operations, the Company has defined northern California as that area of California north of, and including, Stockton to the east and San Jose to the west; central California as that area of the state south of Stockton and San Jose, to and including, Bakersfield to the east and San Luis Obispo to the west; and southern California as that area of the state south of Bakersfield and San Luis Obispo.

Recent Developments

On July 22, 2021, the Company entered into a definitive agreement with Valley Republic Bancorp (“Valley”) to acquire Valley and its wholly-owned subsidiary, Valley Republic Bank. Under the terms of the agreement, Valley shareholders will receive 0.95 of a share of TriCo’s common stock in exchange for each share of Valley’s common stock, subject to certain potential adjustments. The aggregate merger consideration of $165.6 million includes $164.7 million in TriCo stock to be issued to Valley shareholders and $0.9 million to be paid in cash to Valley option holders. The value of the merger consideration will fluctuate until closing based on the value of TriCo’s stock. The merger is expected to qualify as a tax-free reorganization.

The proposed transaction is expected to close in the fourth quarter of 2021, subject to satisfaction of customary closing conditions, including regulatory approvals and shareholder approval from Valley’s shareholders. The transaction is expected to be 5.5% accretive to TriCo’s earnings per share in 2022, with 1.6% dilution to tangible book value per share, and a tangible book value earnback of 2.0 years. The earnings per share accretion estimates are based on anticipated cost savings of approximately 17% of Valley’s non-interest expense and does not include any benefits from potential revenue synergies which may result, although opportunities have been identified.

For additional information about the proposed acquisition of Valley, see the Company’s Current Report on Form 8-K filed with the SEC on July 27, 2021 and the definitive agreement filed therewith.

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Financial Highlights

Performance highlights and other developments for the Company as of or for the three and six months ended June 30, 2021 included the following:

•For the three and six months ended June 30, 2021, the Company’s return on average assets was 1.40% and 1.57%, respectively, and the return on average equity was 11.85% and 13.16%, respectively.

•Organic loan growth, excluding PPP, totaled $99.2 million (8.6% annualized) for the current quarter and $327.3.million (7.5%) for the trailing twelve month period.

•For the current quarter, net interest margin was 3.58% on a tax equivalent basis as compared to 4.10% in the quarter ended June 30, 2020, and a decrease of 16 basis points from 3.74% in the trailing quarter.

•The efficiency ratio was 53.19% as of June 30, 2021, as compared to 50.42% in the trailing quarter and 59.69% in the same quarter of the prior year.

•As of June 30, 2021, the Company reported total loans, total assets and total deposits of $4.94 billion, $8.17 billion and $6.99 billion, respectively. As a direct result of the considerable deposit growth experienced over the last 6 quarters, the loan to deposit ratio was 70.72% as of June 30, 2021, as compared to 73.21% at December 31, 2020 and 76.84% at June 30, 2020.

•Non-interest bearing deposits as a percentage of total deposits were 40.67% at June 30, 2021, as compared to 39.68% at December 31, 2020 and 39.81% at June 30, 2020.

•The average rate of interest paid on deposits, including non-interest-bearing deposits, decreased to 0.05% for the second quarter of 2021 as compared with 0.06% for the trailing quarter, and decreased by 7 basis points from the average rate paid of 0.12% during the same quarter of the prior year.

•The balance of PPP loans outstanding at June 30, 2020 totaled $248.6 million and the balance of SBA fees remaining to be accreted totaled $9.0 million. In addition, nearly 90% of all round one PPP loans have been forgiven and repaid.

•The reversal of provision for credit losses for loans and debt securities was $0.3 million during the quarter ended June 30, 2021, as compared to a reversal of provision expense of $6.1 million during the trailing quarter ended March 31, 2021, and a provision expense totaling $22.2 million for the three month period ended June 30, 2020.

•The allowance for credit losses to total loans was 1.74% as of June 30, 2021, compared to 1.93% as of December 31, 2020, and 1.15% as January 1, 2020, following the Company's adoption of CECL. Non-performing assets to total assets were 0.43% at June 30, 2021, as compared to 0.39% as of March 31, 2021, and 0.31% at June 30, 2020.

•Gain on sale of loans for the three and six months ended June 30, 2021 totaled $2.8 million and $6.1 million, respectively, as compared to $3.2 million during the quarter ended March 31, 2021 and $1.7 million for the quarter ended June 30, 2020.

SBA Paycheck Protection Program and COVID Deferrals

In March 2020, the Small Business Administration ("SBA") Paycheck Protection Program ("PPP") was created to help small businesses keep workers employed during the COVID-19 crisis. The Company originated loans under this program beginning in April, 2020 through July, 2020 (Round 1). Following the SBA's announcement of a second round of PPP lending with streamlined requirements for both borrowers and lenders in December 2020, the Company resumed accepting applications in January, 2021 (Round 2). The SBA ended PPP and did not accept new borrowing applications, effective May 31, 2021.

As of June 30, 2021, the total gross balance outstanding of PPP loans was $248,582,000 as compared to total PPP originations of $640,410,000. In connection with the origination of these loans, the Company earned approximately $25,299,000 in loan fees, offset by deferred loan costs of approximately $1,245,000, the net of which will be recognized over the earlier of loan maturity (between 24-60 months), repayment or receipt of forgiveness confirmation. As of June 30, 2021 there was approximately $8,990,000 in net deferred fee income remaining to be recognized. During the three and six months ended June 30, 2021, the Company recognized $2,344,000 and $7,304,000, respectively in fees on PPP loans.

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COVID Deferrals

Following the passage of the CARES Act legislation, the "Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus" was issued by federal bank regulators, which offers temporary relief from troubled debt restructuring accounting for loan payment deferrals for certain customers whose businesses are experiencing economic hardship due to Coronavirus. The applicable period for this relief, originally expected to expire on December 31, 2020, was extended through 2021 by way of the Consolidated Appropriations Act. The Company continues to closely monitor the effects of the pandemic on

our loan and deposit customers. Our management team continues to be focused on assessing the risks in our loan portfolio and working with our customers to mitigate where possible, the risk of potential losses.

The following is a summary of COVID related loan customer modifications with outstanding balances as of June 30, 2021:

					Modification Type				Deferral Term
(in thousands)	Modified Loan Balances Outstanding		% of Total Category of Loans		Interest Only Deferral		Principal and Interest Deferral		90 Days		180 Days		Other
Commercial real estate:
CRE non-owner occupied	$	23,811	1.6	%	94.4	%	5.6	%	—	%	81.5	%	18.5	%
CRE owner occupied	2,943		0.5		100.0		—		—		57.1		42.9
Multifamily	26,311		3.2		100.0		—		—		100.0		—
Farmland	—		—		—		—		—		—		—
Total commercial real estate loans	53,065		1.7		97.5		2.5		23.7		89.3		16.6
Consumer loans	—		—		—		—		—		—		—
Commercial and industrial	557		0.1		100.0		—		—		—		100.0
Construction	—		—		—		—		—		—		—
Agriculture production	—		—		—		—		—		—		—
Leases	—		—		—		—		—		—		—
Total modifications	$	53,622	1.1	%	95.7	%	2.5	%	—	%	88.4	%	11.6	%

Of the remaining balance outstanding as of June 30, 2021, $33,350,000 is related to second deferrals which are expected to conclude their modification period by November, 2021 and $2,525,595 is related to third deferrals expected to conclude in October, 2021. The remaining balance of loans with modified terms are scheduled to conclude their modification period during fiscal 2021. However, as long as the current pandemic and recessionary economic conditions continue, it is possible that additional borrowers may request an initial or subsequent modification to their loan terms.

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TRICO BANCSHARES

Financial Summary

(In thousands, except per share amounts; unaudited)

	Three months ended June 30,						Six months ended June 30,
	2021			2020			2021			2020
Net interest income	$	67,083		$	64,659		$	133,523		$	127,851
Reversal of (provision for) credit losses	260			(22,244)			6,320			(30,313)
Non-interest income	15,957			11,657			32,067			23,477
Non-interest expense	(44,171)			(45,550)			(85,789)			(90,300)
Provision for income taxes	(10,767)			(1,092)			(24,110)			(7,164)
Net income	$	28,362		$	7,430		$	62,011		$	23,551
Per Share Data:
Basic earnings per share	$	0.95		$	0.25		$	2.09		$	0.78
Diluted earnings per share	$	0.95		$	0.25		$	2.07		$	0.78
Dividends paid	$	0.25		$	0.22		$	0.50		$	0.44
Book value at period end
Average common shares outstanding	29,719			29,754			29,723			30,074
Average diluted common shares outstanding	29,904			29,883			29,904			30,203
Shares outstanding at period end							29,716			29,759
At period end:
Loans							4,944,894			4,801,405
Total investment securities							2,103,575			1,353,728
Total assets							8,170,365			7,360,071
Total deposits							6,992,053			6,248,258
Other borrowings							40,559			38,544
Shareholders’ equity							966,780			885,686
Financial Ratios:
During the period:
Return on average assets (annualized)	1.40		%	0.43		%	1.57		%	0.70		%
Return on average equity (annualized)	11.85		%	3.39		%	13.16		%	5.28		%
Net interest margin(1) (annualized)	3.58		%	4.10		%	3.66		%	4.22		%
Efficiency ratio	53.19		%	59.69		%	51.81		%	59.82		%
Average equity to average assets	11.81		%	12.53		%	11.93		%	13.22		%
At end of period:
Equity to assets							11.83		%	12.03		%
Total capital to risk-adjusted assets							15.31		%	15.13		%

(1) Fully taxable equivalent (FTE)

The Company announced net income of $28,362,000 for the quarter ended June 30, 2021, compared to $33,649,000 and $7,430,000 during the quarters ended March 31, 2021 and June 30, 2020, respectively. Diluted earnings per share were $0.95, $1.13 and $0.25 for the quarters ended June 30, 2021, March 31, 2021 and June 30, 2020, respectively.

Results of Operations

The following discussion and analysis is designed to provide a better understanding of the significant changes and trends related to the Company and the Bank’s financial condition, operating results, asset and liability management, liquidity and capital resources and should be read in conjunction with the Condensed Consolidated Financial Statements of the Company and the Notes thereto located at Item 1 of this report.

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Net Interest Income

The Company’s primary source of revenue is net interest income, or the difference between interest income on interest-earning assets and interest expense on interest-bearing liabilities. Following is a summary of the components of FTE net income for the periods indicated (dollars in thousands):

	Three months ended
(in thousands)	June 30, 2021			March 31, 2021			$ Change		% Change
Interest income	$	68,479		$	67,916		$	563	0.8	%
Interest expense	(1,396)			(1,476)			80		(5.4)	%
Fully tax-equivalent adjustment (FTE) (1)	255			277			(22)		(7.9)	%
Net interest income (FTE)	$	67,338		$	66,717		$	621	0.9	%
Net interest margin (FTE)	3.58		%	3.74		%
Acquired loans discount accretion, net:
Amount (included in interest income)	$	2,566		$	1,712		$	854
Net interest margin less effect of acquired loan discount accretion(1)	3.44		%	3.64		%			(0.20)	%
PPP loans yield, net:
Amount (included in interest income)	$	3,179		$	5,863		$	(2,684)
Net interest margin less effect of PPP loan yield (1)	3.61		%	3.59		%			0.02	%
Acquired loans discount accretion and PPP loan yield, net: (1)
Amount (included in interest income)	$	5,745		$	7,575		$	(1,830)
Net interest margin less effect of acquired loan discount accretion and PPP loan yield (1)	3.47		%	3.49		%			(0.02)	%

	Three months ended June 30,
(in thousands)	2021			2020			$ Change		% Change
Interest income	$	68,479		$	67,148		$	1,331	2.0	%
Interest expense	(1,396)			(2,489)			1,093		(43.9)	%
Fully tax-equivalent adjustment (FTE) (1)	255			286			(31)		(10.8)	%
Net interest income (FTE)	$	67,338		$	64,945		$	2,393	3.7	%
Net interest margin (FTE)	3.58		%	4.10		%
Acquired loans discount accretion, net:
Amount (included in interest income)	$	2,566		$	2,587		$	(21)
Net interest margin less effect of acquired loan discount accretion(1)	3.44		%	3.94		%			(0.50)	%
PPP loans yield, net:
Amount (included in interest income)	$	3,179		$	2,356		$	823
Net interest margin less effect of PPP loan yield (1)	3.61		%	4.14		%			(0.53)	%
Acquired loans discount accretion and PPP loan yield, net: (1)
Amount (included in interest income)	$	5,745		$	4,943		$	802
Net interest margin less effect of acquired loan discount accretion and PPP loan yield (1)	3.47		%	3.98		%			(0.51)	%

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	Six months ended June 30,
(in thousands)	2021			2020			$ Change		% Change
Interest income	$	136,395		$	133,665		$	2,730	2.0	%
Interest expense	(2,872)			(5,814)			2,942		(50.6)	%
Fully tax-equivalent adjustment (FTE) (1)	532			557			(25)		(4.5)	%
Net interest income (FTE)	$	134,055		$	128,408		$	5,647	4.4	%
Net interest margin (FTE)	3.66		%	4.22		%
Acquired loans discount accretion, net:
Amount (included in interest income)	$	4,278		$	4,335		$	(57)
Net interest margin less effect of acquired loan discount accretion(1)	3.54		%	4.08		%			(0.54)	%
PPP loans yield, net:
Amount (included in interest income)	$	9,042		$	2,356		$	6,686
Net interest margin less effect of PPP loan yield (1)	3.59		%	4.25		%			(0.66)	%
Acquired loans discount accretion and PPP loan yield, net:
Amount (included in interest income)	$	13,320		$	6,691		$	6,629
Net interest margin less effect of acquired loans discount and PPP loan yield (1)	3.46		%	4.11		%			(0.65)	%

(1)Certain information included herein is presented on a fully tax-equivalent (FTE) basis and/or to present additional financial details which may be desired by users of this financial information. The Company believes the use of this non-generally accepted accounting principles (non-GAAP) measure provides additional clarity in assessing its results, and the presentation of these measures is a common practice within the banking industry.

Loans may be acquired at a premium or discount to par value, in which case, the premium is amortized (subtracted from) or accreted (added to) interest income over the remaining life of the loan. Generally, as time goes on, the effects of loan discount accretion and loan premium amortization decrease as the purchased loans mature or pay off early. Upon the early pay off of a loan, any remaining unaccreted discount or unamortized premium is immediately taken into interest income; and as loan payoffs may vary significantly from quarter to quarter, so may the impact of discount accretion and premium amortization on interest income. As a result of the decrease in interest rates, the prepayment rate of portfolio loans, inclusive of those acquired at a premium or discount, increased during the second quarter of 2021. During the three months ended June 30, 2021, March 31, 2021, and June 30, 2020, purchased loan discount accretion was $2,566,000, $1,712,000, and $2,587,000, respectively.

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Summary of Average Balances, Yields/Rates and Interest Differential

The following table presents, for the three month periods indicated, information regarding the Company’s consolidated average assets, liabilities and shareholders’ equity, the amounts of interest income from average interest-earning assets and resulting yields, and the amount of interest expense paid on interest-bearing liabilities. Average loan balances include nonperforming loans. Interest income includes proceeds from loans on nonaccrual loans only to the extent cash payments have been received and applied to interest income. Yields on securities and certain loans have been adjusted upward to reflect the effect of income thereon exempt from federal income taxation at the current statutory tax rate (dollars in thousands).

	For the three months ended
	June 30, 2021						June 30, 2020
	Average Balance		Interest Income/ Expense		Rates Earned /Paid		Average Balance		Interest Income/ Expense		Rates Earned /Paid
Assets:
Loans, excluding PPP	$	4,646,188	$	57,125	4.93	%	$	4,363,481	$	56,053	5.23	%
PPP loans	332,277		3,179		3.84	%	292,569		2,356		3.24	%
Investment securities - taxable	1,875,056		7,189		1.54	%	1,251,873		7,689		2.47	%
Investment securities - nontaxable(1)	132,034		1,106		3.36	%	119,860		1,238		4.15	%
Total investments	2,007,090		8,295		1.66	%	1,371,733		8,927		2.62	%
Cash at Federal Reserve and other banks	559,026		135		0.10	%	338,082		98		0.12	%
Total interest-earning assets	7,544,581		68,734		3.65	%	6,365,865		67,434		4.26	%
Other assets	584,093						661,870
Total assets	$	8,128,674					$	7,027,735
Liabilities and shareholders’ equity:
Interest-bearing demand deposits	$	1,490,247	$	77	0.02	%	$	1,293,007	$	64	0.02	%
Savings deposits	2,316,889		308		0.05	%	1,968,374		644		0.13	%
Time deposits	324,867		443		0.55	%	409,242		1,105		1.09	%
Total interest-bearing deposits	4,132,003		828		0.08	%	3,670,623		1,813		0.20	%
Other borrowings	40,986		5		0.05	%	26,313		4		0.06	%
Junior subordinated debt	57,788		563		3.91	%	57,372		672		4.71	%
Total interest-bearing liabilities	4,230,777		1,396		0.13	%	3,754,308		2,489		0.27	%
Noninterest-bearing deposits	2,811,078						2,266,671
Other liabilities	126,674						126,351
Shareholders’ equity	960,145						880,405
Total liabilities and shareholders’ equity	$	8,128,674					$	7,027,735
Net interest spread(2)					3.52	%					3.99	%
Net interest income and interest margin(3)			$	67,338	3.58	%			$	64,945	4.10	%

(1)Fully taxable equivalent (FTE)

(2)Net interest spread represents the average yield earned on interest-earning assets minus the average rate paid on interest-bearing liabilities.

(3)Net interest margin is computed by calculating the difference between interest income and interest expense, divided by the average balance of interest-earning assets, then annualized based on the number of days in the given period.

Net interest income (FTE) during the three months ended June 30, 2021 increased $2,393,000 or 3.7% to $67,338,000 compared to $64,945,000 for the quarter ended June 30, 2020. Over the same period, net interest margin decreased 52 basis points to 3.58% as compared to 4.10% in the comparative 2020 period. The 52 basis point decrease is primarily attributed to a 30 basis point decrease in non-PPP loan yields, which yielded 4.93% as of June 30, 2021 as compared to 5.23% for the quarter ended June 30, 2020.

The following table presents, for the six month periods indicated, information regarding the Company’s consolidated average assets, liabilities and shareholders’ equity, the amounts of interest income from average interest-earning assets and resulting yields, and the amount of interest expense paid on interest-bearing liabilities. Average loan balances include nonperforming loans. Interest income includes proceeds from loans on nonaccrual loans only to the extent cash payments have been received and applied to interest income. Yields on securities and certain loans have been adjusted upward to reflect the effect of income thereon exempt from federal income taxation at the current statutory tax rate (dollars in thousands).

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ANALYSIS OF CHANGE IN NET INTEREST MARGIN ON EARNING ASSETS

(unaudited, dollars in thousands)

	Six months ended June 30, 2021						Six months ended June 30, 2020
	Average Balance		Income/ Expense		Yield/ Rate		Average Balance		Income/ Expense		Yield/ Rate
Assets
Loans, excluding PPP	$	4,527,329	$	111,698	4.98	%	$	4,346,419	$	112,311	5.20	%
PPP loans	344,011		9,042		5.30	%	146,285		2,356		3.24	%
Investments-taxable	1,763,140		13,583		1.55	%	1,235,672		16,261		2.65	%
Investments-nontaxable (1)	128,564		2,306		3.62	%	118,992		2,413		4.08	%
Total investments	1,891,704		15,889		1.69	%	1,354,664		18,674		2.77	%
Cash at Federal Reserve and other banks	629,952		298		0.10	%	266,752		881		0.66	%
Total earning assets	7,392,996		136,927		3.73	%	6,114,120		134,222		4.41	%
Other assets, net	575,138						653,006
Total assets	$	7,968,134					$	6,767,126
Liabilities and shareholders’ equity
Interest-bearing demand deposits	$	1,461,377	$	153	0.02	%	$	1,269,452	$	233	0.04	%
Savings deposits	2,272,830		637		0.06	%	1,918,918		1,706		0.18	%
Time deposits	330,703		975		0.59	%	419,638		2,425		1.16	%
Total interest-bearing deposits	4,064,910		1,765		0.09	%	3,608,008		4,364		0.24	%
Other borrowings	36,870		9		0.05	%	24,552		9		0.07	%
Junior subordinated debt	57,739		1,098		3.83	%	57,324		1,441		5.06	%
Total interest-bearing liabilities	4,159,519		2,872		0.14	%	3,689,884		5,814		0.32	%
Noninterest-bearing deposits	2,734,922						2,059,242
Other liabilities	123,233						123,481
Shareholders’ equity	950,460						894,519
Total liabilities and shareholders’ equity	$	7,968,134					$	6,767,126
Net interest rate spread (1) (2)					3.59	%					4.09	%
Net interest income and margin (1) (3)			$	134,055	3.66	%			$	128,408	4.22	%

(1)Fully taxable equivalent (FTE). All yields and rates are calculated using specific day counts for the period and year as applicable.

(2)Net interest spread is the average yield earned on interest-earning assets minus the average rate paid on interest-bearing liabilities.

(3)Net interest margin is computed by calculating the difference between interest income and interest expense, divided by the average balance of interest-earning assets.

Summary of Changes in Interest Income and Expense due to Changes in Average Asset and Liability Balances and Yields Earned and Rates Paid

The following table sets forth, for the period identified, a summary of the changes in interest income and interest expense from changes in average asset and liability balances (volume) and changes in average interest rates for the periods indicated. Changes not solely attributable to volume or rates have been allocated in proportion to the respective volume and rate components.

	Three months ended June 30, 2021 compared with three months ended June 30, 2020
(in thousands)	Volume		Rate		Total
Increase (decrease) in interest income:
Loans, including PPP	$	6,780	$	(4,885)	$	1,895
Investment securities(1)	10,515		(11,147)		(632)
Cash at Federal Reserve and other banks	66		(29)		37
Total interest-earning assets	17,361		(16,061)		1,300
Increase (decrease) in interest expense:
Interest-bearing demand deposits	10		3		13
Savings deposits	113		(449)		(336)
Time deposits	(230)		(432)		(662)
Other borrowings	2		(1)		1
Junior subordinated debt	5		(114)		(109)
Total interest-bearing liabilities	(100)		(993)		(1,093)
Increase (decrease) in net interest income	$	17,461	$	(15,068)	$	2,393

	Six months ended June 30, 2021 compared with six months ended June 30, 2020
(in thousands)	Volume		Rate		Total
Increase (decrease) in interest income:
Loans, including PPP	$	9,845	$	(3,772)	$	6,073
Investment securities(1)	18,071		(20,856)		(2,785)
Cash at Federal Reserve and other banks	1,199		(1,782)		(583)
Total interest-earning assets	29,115		(26,410)		2,705
Increase (decrease) in interest expense:
Interest-bearing demand deposits	77		(157)		(80)
Savings deposits	637		(1,706)		(1,069)
Time deposits	(1,032)		(418)		(1,450)
Other borrowings	9		(9)		—
Junior subordinated debt	21		(364)		(343)
Total interest-bearing liabilities	(288)		(2,654)		(2,942)
Increase (decrease) in net interest income	$	29,403	$	(23,756)	$	5,647

((1) Fully taxable equivalent (FTE)

The following commentary regarding net interest income, interest income and interest expense may be best understood while referencing the Summary of Average Balances, Yields/Rates and Interest Differential and the Summary of Changes in Interest Income and Expense due to Changes in Average Asset and Liability Balances and Yields Earned and Rates Paid shown above.

Net interest income (FTE) during the three months ended June 30, 2021 increased $2,393,000 or 3.7% to $67,338,000 compared to $64,945,000 during the three months ended June 30, 2020. The overall increase in net interest income (FTE) was due to an increase in average loan volume, including PPP, and related income earned on loans, which net of the impact of declining yields resulted in a change totaling $1,895,000. Declining interest rates also continued to benefit the interest expense on deposits, resulting in a decrease of $985,000 in related costs. As an offset, depressed interest rates on investment securities continue to incentive pre-payment on existing debt and promote new debt issuances being purchased with lower coupon yields, resulting in a decline of $632,000 in yield during the period.

Net interest income (FTE) during the six months ended June 30, 2021 increased $5,647,000 or 4.4% to $134,055,000 compared to $128,408,000 during the six months ended June 30, 2020. The overall increase in net interest income (FTE) was due to an increase in average loan volume, including PPP, and related income earned on loans, totaling $6,073,000. Declining interest rates also continued to benefit the yield expense on deposits, resulting in a decrease of $2,559,000 in related expense. As an offset, depressed interest rates on investment securities continue to incentive pre-payment on existing debt and promote new debt issuances being purchased with lower coupon yields, resulting in a decline of $2,785,000 in yield during the period.

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Asset Quality and Loan Loss Provisioning

During the three months ended June 30, 2021, the Company recorded a reversal of provision for credit losses of $260,000, as compared to a reversal of provision for credit losses of $6,060,000 during the trailing quarter, and a provision expense of $22,244,000 during the second quarter of 2020.

The following table presents details of the provision for credit losses for the periods indicated:

	Three months ended
(in thousands)	June 30, 2021		March 31, 2021		December 31, 2020		September 30, 2020		June 30, 2020
Addition to (reversal of) allowance for credit losses	$	(145)	$	(6,240)	$	4,450	$	7,649	$	22,089
Addition to (reversal of) unfunded loan commitments	(115)		180		400		—		155
Total provision for credit losses	$	(260)	$	(6,060)	$	4,850	$	7,649	$	22,244

	Six months ended
(in thousands)	June 30, 2021		June 30, 2020
Addition to (reversal of) allowance for credit losses	$	(6,385)	$	30,089
Addition to (reversal of) unfunded loan commitments	65		224
Total provision for credit losses	$	(6,320)	$	30,313

The allowance for credit losses (ACL) was $86,062,000 as of June 30, 2021, a net increase of $121,000 over the immediately preceding quarter. The reversal of allowance for credit losses of $145,000 was necessary as the net recoveries totaling $266,000 during the quarter were in excess of the required changes in quantitative and qualitative reserve components. More specifically, the portfolio-wide qualitative indicator associated with the forecast levels of US unemployment reduced the required credit reserves by $2,294,000, while the qualitative factors associated with portfolio concentration risks, stemming from second quarter loan growth, added approximately $1,708,000 to the credit expense on loans as of June 30, 2021.

The Company utilizes a forecast period of approximately eight quarters and obtains the forecast data from publicly available sources as of the balance sheet date. This forecast data continues to evolve and included significant shifts in the magnitude of changes for both the unemployment and GDP factors leading up to the balance sheet date. Management noted that the majority of economic forecasts utilized in the ACL calculation seem to have rebounded slightly in the current quarter, coinciding with the widespread availability of vaccines, continued easing of occupancy and social distancing restrictions, and continued government stimulus efforts.

Loans past due 30 days or more decreased by $1,258,000 during the quarter ended June 30, 2021 to $9,292,000, as compared to $10,550,000 at March 31, 2021. Non-performing loans were $32,705,000 at June 30, 2021, an increase of $3,764,000 and $11,975,000, respectively, from $28,941,000 and $20,730,000 as of March 31, 2021, and June 30, 2020, respectively.

The following table illustrates the total loans by risk rating and their respective percentage of total loans for the periods presented.

	June 30,			% of Total Loans		March 31,			% of Total Loans		December 31,			% of Total Loans
(in thousands)	2021					2021					2020
Risk Rating:
Pass	$	4,756,379		96.2	%	$	4,765,180		95.9	%	$	4,556,870		95.7	%
Special Mention	130,234			2.6	%	143,677			2.9	%	157,191			3.3	%
Substandard	58,281			1.2	%	58,120			1.2	%	49,066			1.0	%
Total	$	4,944,894				$	4,966,977				$	4,763,127
Classified loans to total loans	1.18		%			1.17		%			1.03		%
Loans past due 30+ days to total loans	0.19		%			0.19		%			0.14		%

The Company's loan portfolio for non-classified loans (loans graded special mention or better) remains consistent for the quarter ended June 30, 2021, as compared to the trailing quarter March 31, 2021, representing 98.8% of total loans outstanding, respectively. Loans risk graded special mention decreased by approximately $13,445,000 during the quarter ended June 30, 2021 as compared to the trailing quarter, while loans risk graded substandard increased modestly by $161,000 over the same period. The reduction in special mention risk graded credits was largely the result of two relationships being upgraded, totaling $9,747,000. The total balance of substandard risk graded credits remained consistent as of the current and trailing quarters; although, the Company did benefit from the payoff of one credit, which was subsequently offset by a separate credit that was downgraded to substandard.

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There was one addition to other real estate owned totaling approximately $101,000 during the quarter ended June 30, 2021 and there was one sale for proceeds of approximately $184,000, which generated a net gain of $15,000 for the quarter. As of June 30, 2021, other real estate owned consisted of six properties with a carrying value of approximately $2,248,000.

Non-interest Income

The following table summarizes the Company’s non-interest income for the periods indicated (in thousands):

	Three months ended June 30,
(in thousands)	2021		2020		$ Change		% Change
ATM and interchange fees	$	6,558	$	5,165	$	1,393	27.0	%
Service charges on deposit accounts	3,462		3,046		416		13.7	%
Other service fees	914		734		180		24.5	%
Mortgage banking service fees	467		459		8		1.7	%
Change in value of mortgage servicing rights	(471)		(1,236)		765		(61.9)	%
Total service charges and fees	10,930		8,168		2,762		33.8	%
Increase in cash value of life insurance	745		710		35		4.9	%
Asset management and commission income	947		661		286		43.3	%
Gain on sale of loans	2,847		1,736		1,111		64.0	%
Lease brokerage income	249		127		122		96.1	%
Sale of customer checks	116		88		28		31.8	%
Gain on sale of investment securities	—		—		—		n/a
Gain on marketable equity securities	8		25		(17)		(68.0)	%
Other	115		142		(27)		(19.0)	%
Total other non-interest income	5,027		3,489		1,538		44.1	%
Total non-interest income	$	15,957	$	11,657	$	4,300	36.9	%

Non-interest income increased $4,300,000 or 36.9% to $15,957,000 during the three months ended June 30, 2021, compared to $11,657,000 during the comparable 2020 quarter. Following the relaxed social distancing guidelines, increased debit card usage benefited ATM and interchange fees, increasing by $1,393,000, during the recent quarter ended. Additionally, changes in the value of mortgage servicing rights and gain on sale of mortgage loans improved by $765,000 and $1,111,000, respectively, during the three months ended June 30, 2021 as compared to the equivalent period in 2020.

The following table presents the key components of non-interest income for the current and prior year periods indicated:

	Six months ended June 30,
(in thousands)	2021		2020		$ Change		% Change
ATM and interchange fees	$	12,419	$	10,276	$	2,143	20.9	%
Service charges on deposit accounts	6,731		7,092		(361)		(5.1)	%
Other service fees	1,785		1,492		293		19.6	%
Mortgage banking service fees	930		928		2		0.2	%
Change in value of mortgage servicing rights	(459)		(2,494)		2,035		(81.6)	%
Total service charges and fees	21,406		17,294		4,112		23.8	%
Increase in cash value of life insurance	1,418		1,430		(12)		(0.8)	%
Asset management and commission income	1,781		1,577		204		12.9	%
Gain on sale of loans	6,094		2,627		3,467		132.0	%
Lease brokerage income	359		320		39		12.2	%
Sale of customer checks	235		212		23		10.8	%
Gain on sale of investment securities	—		—		—		n/m
Gain (loss) on marketable equity securities	(45)		72		(117)		(162.5)	%
Other	819		(55)		874		(1,589.1)	%
Total other non-interest income	10,661		6,183		4,478		72.4	%
Total non-interest income	$	32,067	$	23,477	$	8,590	36.6	%

Non-interest income increased $8,590,000 or 36.6% to $32,067,000 during the six months ended June 30, 2021, compared to $23,477,000 during the comparable period in 2020. Following the relaxed social distancing guidelines, increased debit card usage benefited ATM and interchange fees, increasing by $2,143,000, during the most recent six months period ended. Additionally, changes in the value of mortgage servicing rights and gain on sale of mortgage loans improved by $2,035,000 and $3,467,000, respectively, during the six months ended June 30, 2021 as compared to the equivalent period in 2020.

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Non-interest Expense

The following table summarizes the Company’s non-interest expense for the periods indicated:

	Three months ended June 30,
(in thousands)	2021		2020		$ Change		% Change
Base salaries, net of deferred loan origination costs	$	17,537	$	17,277	$	260	1.5	%
Incentive compensation	4,322		2,395		1,927		80.5	%
Benefits and other compensation costs	5,222		7,383		(2,161)		(29.3)	%
Total salaries and benefits expense	27,081		27,055		26		0.1	%
Occupancy	3,700		3,398		302		8.9	%
Data processing and software	3,201		3,657		(456)		(12.5)	%
Equipment	1,207		1,350		(143)		(10.6)	%
Intangible amortization	1,431		1,431		—		—	%
Advertising	734		531		203		38.2	%
ATM and POS network charges	1,551		1,210		341		28.2	%
Professional fees	1,046		741		305		41.2	%
Telecommunications	564		639		(75)		(11.7)	%
Regulatory assessments and insurance	618		360		258		71.7	%
Postage	124		283		(159)		(56.2)	%
Operational losses	212		184		28		15.2	%
Courier service	288		337		(49)		(14.5)	%
Gain on sale or acquisition of foreclosed assets	(15)		(16)		1		(6.3)	%
(Gain) loss on disposal of fixed assets	(426)		15		(441)		(2,940.0)	%
Other miscellaneous expense	2,855		4,375		(1,520)		(34.7)	%
Total other non-interest expense	17,090		18,495		(1,405)		(7.6)	%
Total non-interest expense	$	44,171	$	45,550	$	(1,379)	(3.0)	%
Average full time equivalent staff	1,020		1,140		(120)		(10.5)	%

Non-interest expense decreased by $1,379,000 or 3.0% to $44,171,000 during the three months ended June 30, 2021 as compared to $45,550,000 for the three months ended June 30, 2020. Benefits and other compensation expense decreased by $2,161,000 during the three months ended June 30, 2021, primarily due to improved long-term benefit obligation costs. Other miscellaneous expenses decreased by $1,520,000 during the three months ended June 30, 2021, due specifically to the absence of indirect loan documentation and administrative costs incurred in conjunction with the PPP loan program incurred during the three months ended June 30, 2020. A gain on disposal of fixed assets was recorded during the quarter totaling $426,000 related to the sale of a former retail branch building. Conversely, incentive compensation increased by $1,927,000 or 80.5% to $4,322,000 during the quarter ended June 30, 2021 as compared to the same period in 2020, due to the organic loan growth and strong overall Company performance during the quarter.

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The following table presents the key components of non-interest income for the current and prior year periods indicated:

	Six months ended June 30,
(in thousands)	2021		2020		$ Change		% Change
Base salaries, net of deferred loan origination costs	$	33,048	$	34,900	$	(1,852)	(5.3)	%
Incentive compensation	7,902		5,496		2,406		43.8	%
Benefits and other compensation costs	11,461		13,931		(2,470)		(17.7)	%
Total salaries and benefits expense	52,411		54,327		(1,916)		(3.5)	%
Occupancy	7,426		7,273		153		2.1	%
Data processing and software	6,403		7,024		(621)		(8.8)	%
Equipment	2,724		2,862		(138)		(4.8)	%
Intangible amortization	2,862		2,862		—		—	%
Advertising	1,114		1,196		(82)		(6.9)	%
ATM and POS network charges	2,797		2,583		214		8.3	%
Professional fees	1,640		1,444		196		13.6	%
Telecommunications	1,145		1,364		(219)		(16.1)	%
Regulatory assessments and insurance	1,230		455		775		170.3	%
Postage	322		573		(251)		(43.8)	%
Operational losses	421		405		16		4.0	%
Courier service	582		668		(86)		(12.9)	%
Gain on sale or acquisition of foreclosed assets	(66)		(57)		(9)		15.8	%
(Gain) loss on disposal of fixed assets	(426)		15		(441)		(2940.0)	%
Other miscellaneous expense	5,204		7,306		(2,102)		(28.8)	%
Total other non-interest expense	33,378		35,973		(2,595)		(7.2)	%
Total non-interest expense	$	85,789	$	90,300	$	(4,511)	(5.0)	%
Average full-time equivalent staff	1,022		1,141		(119)		(10.4)	%

Income Taxes

The Company’s effective tax rate was 28.0% for the six months ended June 30, 2021, as compared to 25.8% for the year ended December 31, 2020. The reduced effective tax rate in the prior year was made possible through the provisions of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) which provided the Company with an opportunity to file amended tax returns and generate proposed refunds of approximately $805,000. Other differences between the Company's effective tax rate and applicable federal and state statutory rates are due to the proportion of non-taxable revenue and low income housing tax credits as compared to the levels of pre-tax earnings.

Financial Condition

For financial reporting purposes, the Company does not separately track the changes in assets and liabilities based on branch location or regional geography. The following is a comparison of the quarterly change in certain assets and liabilities:

(in thousands)	As of June 30, 2021		As of December 31, 2020		$ Change		Annualized % Change
Ending balances
Total assets	$	8,170,365	$	7,639,529	$	530,836	13.9	%
Total loans	4,944,894		4,763,127		181,767		7.6	%
Total PPP loans	239,592		326,770		(87,178)		(53.4)	%
Total investments	2,103,575		1,719,102		384,473		44.7	%
Total deposits	6,992,053		6,505,934		486,119		14.9	%
Total noninterest-bearing deposits	2,843,783		2,581,517		262,266		20.3	%
Total other borrowings	40,559		26,914		13,645		101.4	%

Organic loan growth, excluding PPP, of $99,169,000 or 8.6% on an annualized basis was realized during the quarter ended June 30, 2021, primarily within commercial real estate. In addition, investment security growth was $140,795,000 or 28.7% on an annualized basis as excess liquidity continued to be put to use in higher yielding earning assets. Earning asset growth was funded by the continued growth of deposit balances which increased during the second quarter of 2021 by $128,653,000 or 7.5% annualized. SBA forgiveness outpaced new loan origination activity, resulting in a $22,083,000 or 1.8% annualized decrease in total loans during the second quarter as compared to the trailing quarter.

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The following is a comparison of the year over year change in certain assets and liabilities:

	As of June 30,				$ Change		% Change
(in thousands)	2021		2020
Ending balances
Total assets	$	8,170,365	$	7,360,071	$	810,294	11.0	%
Total loans	4,944,894		4,801,405		143,489		3.0	%
Total PPP loans	239,592		423,431		(183,839)		(43.4)	%
Total investments	2,103,575		1,353,728		749,847		55.4	%
Total deposits	6,992,053		6,248,258		743,795		11.9	%
Total noninterest-bearing deposits	2,843,783		2,487,120		356,663		14.3	%
Total other borrowings	40,559		38,544		2,015		5.2	%

The PPP program generated significant increases in volume during the twelve months ended June 30, 2021 for both loan and deposit balances. Other forms of stimulus payments have further elevated deposit levels during the same period. While excess deposit proceeds are ratably being allocated to the purchase of investment securities with medium term durations to improve overall margin, we expect to maintain above average levels of liquidity through 2021, as the economic impacts of COVID-19 and amount of future stimulus both remain uncertain. Investment securities increased to $2,103,575,000 at June 30, 2021, a change of $749,847,000 or 55.4% from $1,353,728,000 at June 30, 2020.

Investment Securities

Investment securities available for sale increased $433,304,000 to $1,847,568,000 as of June 30, 2021, compared to December 31, 2020. This increase is primarily supported by deposit growth and available cash reserves. There were no sales of investment securities during the three and six months ended June 30, 2021 and 2020, respectively.

The following table presents the available for sale debt securities portfolio by major type as of June 30, 2021 and December 31, 2020:

	June 30, 2021				December 31, 2020
(in thousands)	Fair Value		%		Fair Value		%
Debt securities available for sale:
Obligations of U.S. government agencies	$	1,133,416	61.3	%	$	812,374	57.4	%
Obligations of states and political subdivisions	146,924		8.0	%	129,095		9.1	%
Corporate bonds	2,556		0.1	%	2,544		0.2	%
Asset backed securities	564,672		30.6	%	470,251		33.3	%
Total debt securities available for sale	$	1,847,568	100.0	%	$	1,414,264	100.0	%

	June 30, 2021				December 31, 2020
(in thousands)	Amortized Cost		%		Amortized Cost		%
Debt securities held to maturity:
Obligations of U.S. government and agencies	$	226,925	96.2	%	$	273,667	96.2	%
Obligations of states and political subdivisions	8,853		3.8	%	10,896		3.8	%
Total debt securities held to maturity	$	235,778	100.0	%	$	284,563	100.0	%

Investment securities held to maturity decreased $48,785,000 to $235,778,000 as of June 30, 2021, as compared to December 31, 2020. This decrease is attributable to calls and principal repayments of $48,269,000, and amortization of net purchase premiums of $2,855,000.

Loans

The Company concentrates its lending activities in six principal areas: commercial real estate loans, consumer loans, commercial and industrial loans, construction loans, agriculture production loans and leases. The interest rates charged for the loans made by the Company vary with the degree of risk, the size and maturity of the loans, the borrower’s relationship with the Company and prevailing money market rates indicative of the Company’s cost of funds.

The majority of the Company’s loans are direct loans made to individuals, farmers and local businesses. The Company relies substantially on local promotional activity and personal contacts by bank officers, directors and employees to compete with other financial institutions.

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The Company makes loans to borrowers whose applications include a sound purpose, a viable repayment source and a plan of repayment established at inception and generally backed by a secondary source of repayment.

The following table shows the Company’s loan balances, net deferred loan costs and discounts, as of the dates indicated:

(in thousands)	June 30, 2021				December 31, 2020
Commercial real estate	$	3,194,336	64.60	%	$	2,951,902	61.97	%
Consumer	1,050,609		21.25	%	952,108		19.99	%
Commercial and industrial	452,069		9.14	%	526,327		11.05	%
Construction	200,714		4.06	%	284,842		5.98	%
Agriculture production	41,967		0.85	%	44,164		0.93	%
Leases	5,199		0.11	%	3,784		0.08	%
Total loans	$	4,944,894	100.0	%	$	4,763,127	100.0	%

As of June 30, 2021, the total gross balance outstanding of PPP loans was $248,582,000 as compared to total PPP originations of $640,410,000. In connection with the origination of these loans, the Company earned approximately $25,299,000 in loan fees, offset by deferred loan costs of approximately $1,245,000, the net of which will be recognized over the earlier of loan maturity (between 24-60 months), repayment or receipt of forgiveness confirmation. As of June 30, 2021 there was approximately $8,990,000 in net deferred fee income remaining to be recognized. During the three and six months ended June 30, 2021, the Company recognized $2,344,000 and $7,304,000, respectively in fees on PPP loans.

Nonperforming Assets

The following tables set forth the amount of the Company’s nonperforming assets ("NPA") as of the dates indicated. “Performing nonaccrual loans” are loans that may be current for both principal and interest payments, or are less than 90 days past due, but for which payment in full of both principal and interest is not expected, and are not well secured and in the process of collection:

(in thousands)	June 30, 2021			December 31, 2020
Performing nonaccrual loans	$	25,307		$	22,896
Nonperforming nonaccrual loans	7,398			3,968
Total nonaccrual loans	32,705			26,864
Loans 90 days past due and still accruing	—			—
Total nonperforming loans	32,705			26,864
Foreclosed assets	2,247			2,844
Total nonperforming assets	$	34,952		$	29,708
Nonperforming assets to total assets	0.44		%	0.39		%
Nonperforming loans to total loans	0.66		%	0.56		%
Allowance for credit losses to nonperforming loans	274		%	342		%

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Changes in nonperforming assets during the three months ended June 30, 2021

(in thousands)	Balance at March 31, 2021		New NPA / Valuation Adjustments	Pay-downs /Sales /Upgrades		Charge-offs/ (1) Write-downs	Transfers to Foreclosed Assets	Balance at June 30, 2021
Commercial real estate:
CRE non-owner occupied	$	7,000	1,833	(318)		—	—	$	8,515
CRE owner occupied	3,762		2,134	(286)		—	—	5,610
Multifamily	—		171	—		—	—	171
Farmland	1,431		—	(85)		—	—	1,346
Total commercial real estate loans	12,193		4,138	(689)		—	—	15,642
Consumer
SFR 1-4 1st DT liens	4,996		23	(793)		—	102	4,328
SFR HELOCs and junior liens	5,142		292	(830)		—	—	4,604
Other	103		30	(8)		(12)	—	113
Total consumer loans	10,241		345	(1,631)		(12)	102	9,045
Commercial and industrial	2,019		1,985	(88)		(301)		3,615
Construction	4,483		—	(81)		—	—	4,402
Agriculture production	5		—	(5)		—	—	—
Leases	—		—	—		—	—	—
Total nonperforming loans	28,941		6,468	(2,494)		(313)	102	32,704
Foreclosed assets	2,309		—	(61)		—	—	2,248
Total nonperforming assets	$	31,250	6,468	(2,555)	—	(313)	102	$	34,952

(1) The table above does not include deposit overdraft charge-offs.

Nonperforming assets increased during the three months ended June 30, 2021 by $3,702,000 (11.8%) to $34,952,000 at June 30, 2021 compared to $31,250,000 at March 31, 2021. The increase in nonperforming assets during the second quarter of 2021 was primarily the result of new nonperforming loans of $6,468,000, which were partially offset by pay-downs of $2,555,000 and write-downs of $313,000.

Non performing loans added during the second quarter of 2021 were primarily within commercial real estate, with non-owner occupied adding $1,833,000 and owner occupied contributing $2,134,000 . Management believes these loans are well-secured as of June 30, 2021. Further, management is actively engaged in the collection and recovery efforts for all nonperforming assets and believes that the specific loan loss reserves associated with these loans is sufficient as of June 30, 2021.

Loan charge-offs during the three months ended June 30, 2021

In the second quarter of 2021, the Company recorded $313,000 in loan charge-offs and $74,000 in deposit overdraft charge-offs less $623,000 in loan recoveries and $30,000 in deposit overdraft recoveries, which collectively resulted in $266,000 of net recoveries. Loan charge-offs were not concentrated within any single loan or borrower relationship and were comprised entirely of individual charges of less than $100,000 each.

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Changes in nonperforming assets during the six months ended June 30, 2021

(in thousands)	Balance at December 31, 2020		New NPA / Valuation Adjustments	Pay-downs /Sales /Upgrades		Charge-offs/ (1) Write-downs	Transfers to Foreclosed Assets	Balance at June 30, 2021
Commercial real estate:
CRE non-owner occupied	$	3,110	5,776	(371)		—	—	$	8,515
CRE owner occupied	4,061		2,135	(586)		—	—	5,610
Multifamily	—		171	—		—	—	171
Farmland	1,538		—	(192)		—	—	1,346
Total commercial real estate loans	8,709		8,082	(1,149)		—	—	15,642
Consumer
SFR 1-4 1st DT liens	5,093		44	(911)		—	102	4,328
SFR HELOCs and junior liens	6,148		644	(2,188)		—	—	4,604
Other	167		91	(8)		(137)	—	113
Total consumer loans	11,408		779	(3,107)		(137)	102	9,045
Commercial and industrial	2,183		2,448	(682)		(334)	—	3,615
Construction	4,546		—	(144)		—	—	4,402
Agriculture production	18		—	(18)		—	—	—
Leases	—		—	—		—	—	—
Total nonperforming loans	26,864		11,309	(5,100)		(471)	102	32,704
Foreclosed assets	2,844		—	(596)		—	—	2,248
Total nonperforming assets	$	29,708	11,309	(5,696)	—	(471)	102	$	34,952

(1) The table above does not include deposit overdraft charge-offs.

Nonperforming assets increased during the six months ended June 30, 2021 by $5,244,000 (17.7%) to $34,952,000 at June 30, 2021 compared to $29,708,000 at December 31, 2020. The increase in nonperforming assets during the first half of 2021 was primarily the result of new nonperforming loans of $11,309,000, which were partially offset by pay-downs of $5,696,000 and write-downs of $471,000.

Loan charge-offs during the six months ended June 30, 2021

During the six months ended June 30, 2021, the Company recorded $471,000 in loan charge-offs and $142,000 in deposit overdraft charge-offs less $1,149,000 in loan recoveries and $64,000 in deposit overdraft recoveries, which collectively resulted in $600,000 of net recoveries. Loan charge-offs were not concentrated within any single loan or borrower relationship and were comprised entirely of individual charges of less than $100,000 each.

The Components of the Allowance for Credit Losses for Loans

The following table sets forth the allowance for credit losses as of the dates indicated:

(in thousands)	June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020
Allowance for credit losses:
Qualitative and forecast factor allowance	$	58,118		$	56,500		$	61,935		$	56,393		$	48,548
Cohort model allowance reserves	26,237			27,959			28,462			30,373			30,061
Total allowance for credit losses	84,355			84,459			90,397			86,766			78,609
Allowance for individually evaluated loans	1,707			1,482			1,450			809			1,130
Allowance for PCD loan losses	—			—			—			—			—
Total allowance for credit losses	$	86,062		$	85,941		$	91,847		$	87,575		$	79,739
Allowance for credit losses for loans / Total loans	1.74		%	1.73		%	1.93		%	1.81		%	1.66		%

For additional information regarding the allowance for loan losses, including changes in specific, formula, and environmental factors allowance categories, see “Asset Quality and Loan Loss Provisioning” at “Results of Operations”, above. Based on the current conditions of the loan portfolio, management believes that the $86,062,000 allowance for loan losses at June 30, 2021 is adequate to absorb probable losses inherent in the Bank’s loan portfolio. No assurance can be given, however, that adverse economic conditions or other circumstances will not result in increased losses in the portfolio.

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The following table summarizes the allocation of the allowance for credit losses between loan types and by percentage of the total allowance for loan losses as of the dates indicated:

	June 30, 2021				December 31, 2020			June 30, 2020
Commercial real estate	$	51,637	60.0	%	53,693	58.5	%	$	44,850	56.2	%
Consumer	23,950		27.8	%	25,148	27.4	%	23,165		29.1	%
Commercial and industrial	4,511		5.2	%	4,252	4.6	%	4,018		5.0	%
Construction	4,951		5.8	%	7,540	8.2	%	6,775		8.5	%
Agriculture production	1,007		1.2	%	1,209	1.3	%	919		1.2	%
Leases	6		—	%	5	—	%	12		0.02	%
Total allowance for credit losses	$	86,062	100.0	%	91,847	100.0	%	$	79,739	100.0	%

The following table summarizes the allocation of the allowance for credit losses as a percentage of the total loans for each loan category as of the dates indicated:

	June 30, 2021				December 31, 2020				June 30, 2020
Commercial real estate	$	3,194,336	1.62	%	$	2,951,902	1.82	%	$	2,905,485	1.54	%
Consumer	1,050,609		2.27	%	952,108		2.62	%	945,669		2.45	%
Commercial and industrial	452,069		1.00	%	526,327		0.81	%	634,481		0.63	%
Construction	200,714		2.47	%	284,842		2.65	%	278,566		2.43	%
Agriculture production	41,967		2.40	%	44,164		2.74	%	35,441		0.26	%
Leases	5,199		0.12	%	3,784		0.13	%	1,763		0.68	%
Total loans	$	4,944,894	1.74	%	$	4,763,127	1.93	%	$	4,801,405	1.66	%

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The following table summarizes the activity in the allowance for credit losses for the periods indicated:

	Three months ended June 30,						Six months ended June 30,
(in thousands)	2021			2020			2021			2020
Allowance for credit losses:
Balance at beginning of period	$	85,941		$	57,911		$	91,847		$	30,616
Impact of adoption from ASU 2016-13	—			—			—			18,913
Provision for (reversal of) loan losses	(145)			22,089			(6,385)			30,089
Loans charged-off:
Commercial real estate:
CRE non-owner occupied	—			—			—			—
CRE owner occupied	—			—			—			—
Multifamily	—			—			—			—
Farmland	—			—			—			—
Consumer:
SFR 1-4 1st DT liens	—			(11)			—			(11)
SFR HELOCs and junior liens	—			(23)			—			(23)
Other	(86)			(243)			(279)			(373)
Commercial and industrial	(301)			(214)			(334)			(594)
Construction	—			—			—			—
Agriculture production	—			—			—			—
Leases	—			—			—			—
Total loans charged-off	(387)			(491)			(613)			(1,001)
Recoveries of previously charged-off loans:
Commercial real estate:
CRE non-owner occupied	—			5			2			193
CRE owner occupied	—			4			1			9
Multifamily	—			—			—			—
Farmland	—			—			—			—
Consumer:
Home equity lines	1			2			11			412
Home equity loans	512			92			797			140
Other consumer	59			72			165			167
Commercial and industrial	79			55			215			181
Construction	—			—			—			—
Agriculture production	2			—			22			20
Leases	—			—			—			—
Total recoveries of previously charged-off loans	653			230			1,213			1,122
Net (charge-offs) recoveries	266			(261)			600			121
Balance at end of period	$	86,062		$	79,739		$	86,062		$	79,739
Average total loans	$	4,646,188		$	4,656,050		$	4,527,329		$	4,492,704
Ratios (annualized):
Net recoveries (charge-offs) during period to average loans outstanding during period	0.02		%	(0.02)		%	0.03		%	0.01		%
Provision for credit losses (benefit from reversal of) to average loans outstanding during period	(0.01)		%	1.90		%	(0.28)		%	1.34		%

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Foreclosed Assets, Net of Allowance for Losses

The following table details the components and summarize the activity in foreclosed assets, net of allowances for losses, for the six months ended June 30, 2021:

(in thousands)	Balance at December 31, 2020		Sales		Valuation Adjustments		Transfers from Loans		Balance at June 30, 2021
Land & construction	$	154	$	—	$	—	$	—	$	154
Residential real estate	1,507		(710)		11		102		910
Commercial real estate	1,183		—		—		—		1,183
Total foreclosed assets	$	2,844	$	(710)	$	11	$	102	$	2,247

Deposits

During the three and six months ended June 30, 2021, the Company’s deposits increased by $128,653,000 and $486,119,000, respectively, to $6,992,053,000 at quarter ended. Included in the June 30, 2021 and December 31, 2020 certificate of deposit balances are $10,000,000, respectively, from the State of California. The Company participates in a deposit program offered by the State of California whereby the State may make deposits at the Company’s request subject to collateral and creditworthiness constraints. The negotiated rates on these State deposits are generally more favorable than other wholesale funding sources available to the Company.

Off-Balance Sheet Arrangements

See Note 7 to the condensed consolidated financial statements at Item 1 of Part I of this report for information about the Company’s commitments and contingencies including off-balance-sheet arrangements.

Capital Resources

The current and projected capital position of the Company and the impact of capital plans and long-term strategies are reviewed regularly by Management.

On February 25, 2021 the Board of Directors approved the authorization to repurchase up to 2,000,000 shares of the Company's common stock (the 2021 Repurchase Plan), which approximated 6.7% of the shares outstanding as of the approval date. The actual timing of any share repurchases will be determined by the Company's management and therefore the total value of the shares to be purchased under the program is subject to change. The 2021 Repurchase Plan has no expiration date (in accordance with applicable laws and regulations) and during the three and six month periods June 30, 2021, the Company repurchased 45,354 shares with a market value of $2,101,000, respectively.

In connection with approval of the 2021 Repurchase Plan, the Company’s previous repurchase program adopted on November 12, 2019 (the 2019 Repurchase Plan) was terminated. Under the 2019 Repurchase Plan, during the six months ended June 30, 2021, the Company repurchased 223 shares with a market value of approximately $8,000. The Company repurchased 858,717 shares during 2020.

The Company’s primary capital resource is shareholders’ equity, which totaled $966,780,000 at June 30, 2021. This amount represents an increase of $24,241,000 during the quarter ended June 30, 2021, primarily as a result of net income of $28,362,000, plus an increase in accumulated other comprehensive income of $5,206,000, offset by $7,430,000 in cash dividends paid on common stock. The Company’s ratio of equity to total assets was 11.8% and 12.1% as of June 30, 2021 and December 31, 2020, respectively. We believe that the Company and the Bank were in compliance with applicable minimum capital requirements set forth in the final Basel III Capital rules as of June 30, 2021. The following summarizes the Company’s ratios of capital to risk-adjusted assets as of the dates indicated:

	June 30, 2021				December 31, 2020
	Ratio		Minimum Regulatory Requirement		Ratio		Minimum Regulatory Requirement
Total risk based capital	15.3	%	10.5	%	15.2	%	10.5	%
Tier I capital	14.1	%	8.5	%	14.0	%	8.5	%
Common equity Tier 1 capital	13.0	%	7.0	%	12.9	%	7.0	%
Leverage	9.9	%	4.0	%	9.9	%	4.0	%

See Note 8 and Note 14 to the condensed consolidated financial statements at Item 1 of Part I of this report for additional information

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about the Company’s capital resources.

As of June 30, 2021, we had an effective shelf registration statement on file with the Securities and Exchange Commission that allows us to issue various types of debt securities, as well as common stock, preferred stock, warrants, depositary shares representing fractional interest in shares of preferred stock, purchase contracts and units from time to time in one or more offerings. Each issuance under the shelf registration statement will require the filing of a prospectus supplement identifying the amount and terms of the securities to be issued. The registration statement does not limit the amount of securities that may be issued thereunder. Our ability to issue securities is subject to market conditions and other factors including, in the case of our debt securities, our credit ratings and compliance with current and prospective covenants in credit agreements.

Liquidity

The Company’s principal source of asset liquidity is cash at the Federal Reserve Bank of San Francisco (“Federal Reserve”) and other banks and marketable investment securities available for sale. As of June 30, 2021, Federal Reserve cash reserve ratios continue to be temporarily reduced to zero as a response to the COVID-19 pandemic. The Company’s profitability during the first six months of 2021 generated cash flows from operations of $58,806,000 compared to $63,705,000 during the first six months of 2020. Net cash used by investing activities was $570,986,000 for the six months ended June 30, 2021, compared to net cash from investing activities of $497,490,000 during the six months ending 2020. Financing activities provided $482,369,000 during the six months ended June 30, 2021, compared to $863,130,000 used during the six months ended June 30, 2020. Deposit balance changes increased available liquidity by $486,119,000 during the six months ended June 30, 2021, compared to a decrease of $881,264,000 for financing activity during the same period in 2020. Dividends paid used $14,862,000 and $13,208,000 of cash during the six months ended June 30, 2021 and 2020, respectively. The Company’s liquidity is dependent on dividends received from the Bank. Dividends from the Bank are subject to certain regulatory restrictions.

Item 3.    Quantitative and Qualitative Disclosures about Market Risk

Based on the changes in interest rates occurring subsequent to December 31, 2020, the following update of the Company’s assessment of market risk as of June 30, 2021 is being provided. These updates and changes should be read in conjunction with the additional quantitative and qualitative disclosures in our Annual Report on Form 10-K for the year ended December 31, 2020.

During the quarter ended June 30, 2021, market interest rates, including many rates that serve as reference indices for variable rate loans, showed signs of upward improvement during April and May before ultimately retreating in June of 2021. This prolonged retraction in rates continues to apply downward pressure on the portfolio. Furthermore, management believes that excess liquidity, which when combined with the federal government's continued balance sheet growth and purchase of mortgage-backed agency securities, continues to create limited opportunities for financial institutions to acquire earning assets at yields that are considered neutral or favorable to historical levels of net interest margin.

As of June 30, 2021, the Company's loan portfolio consisted of approximately $4.94 billion in outstanding principal with a weighted average coupon rate of 4.25%, inclusive of the PPP program loans. Excluding PPP loans, the Company's loan portfolio has approximately $4.70 billion outstanding with a weighted average coupon rate of 4.42% as of June 30, 2021. Included in the June 30, 2021 loan total, exclusive of PPP loans, are variable rate loans totaling $3.06 billion of which 88.9% or $2.72 billion were at their floor rate. The remaining variable rate loans totaling $340.0 million, which carried a weighted average coupon rate of 4.89% as of June 30, 2021, are subject to further rate adjustment. If those remaining variable rate loans were to collectively, through future rate adjustments, be reduced to their respective floors, they would have a weighted average coupon rate of approximately 4.29% which would result in the reduction of the weighted average coupon rate of the total loan portfolio, exclusive of PPP loans, from 4.42% to approximately 4.38%.

Management funds the acquisition of nearly all of its earning assets through its core deposit gathering activities. As of June 30, 2021, non-interest bearing deposits represented 40.7% of total deposits. Further, during the quarter ended June 30, 2021, the cost of interest bearing deposits were 0.08% and the cost of total deposits were 0.05%. Under the assumption that the Company will not introduce a negative rate environment to its customer base and that rates will not increase, management anticipates that future decreases in loan yields are more likely than not to decline more rapidly than decreases in deposit costs and thus continue to put downward pressures on net interest margin. With the intent of stabilizing or increasing net interest income, management intends to continue to deploy its excess liquidity and seek to migrate certain earning assets into higher yielding categories (from investment securities and into loans, for example).

As of June 30, 2021 the overnight Federal funds rate, the rate primarily used in these interest rate shock scenarios, was less than 1.00%. Based on the historical nature of these rates in the United States not falling below zero, management believes that a shock scenario that reduces interest rates below zero would not provide meaningful results and therefore, have not been modeled. These scenarios assume that 1) interest rates increase or decrease evenly (in a “ramp” fashion) over a twelve-month period and remain at the new levels beyond twelve months or 2) that interest rates change instantaneously (“shock”). The simulation results shown below assume no changes in the structure of the Company’s balance sheet over the twelve months being measured.

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The following table summarizes the estimated effect on net interest income and market value of equity to changing interest rates as measured against a flat rate (no interest rate change) instantaneous shock scenario over a twelve month period utilizing the Company's specific mix of interest earning assets and interest bearing liabilities as of June 30, 2021.

Interest Rate Risk Simulations:

Change in Interest Rates (Basis Points)	Estimated Change in Net Interest Income (NII) (as % of NII)		Estimated  Change in  Market Value of Equity (MVE) (as % of MVE)
+200 (shock)	3.4	%	18.7	%
+100 (shock)	1.6	%	11.9	%
+    0 (flat)	—		—
-100 (shock)	3.8	%	31.5	%
-200 (shock)	nm		nm

Item 4.    Controls and Procedures

The Company’s management, including its Chief Executive Officer and Chief Financial Officer, have evaluated the effectiveness of the Company’s disclosure controls and procedures as of June 30, 2021. Disclosure controls and procedures, as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), are controls and procedures designed to reasonably assure that information required to be disclosed in the Company’s reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported on a timely basis. Disclosure controls are also designed to reasonably assure that such information is accumulated and communicated to the Company’s management, including the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Based upon their evaluation, our Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective as of June 30, 2021.

During the three months ended June 30, 2021, there were no changes in our internal controls or in other factors that have materially affected or are reasonably likely to materially affect our internal controls over financial reporting.

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PART II – OTHER INFORMATION

Item 1 - Legal Proceedings

Due to the nature of our business, we are involved in legal proceedings that arise in the ordinary course of our business. While the outcome of these matters is currently not determinable, we do not expect that the ultimate costs to resolve these matters will have a material adverse effect on our consolidated financial position, results of operations, or cash flows.

Item 1A - Risk Factors

In addition to the other information set forth in this Form 10-Q, you should carefully consider the risk factors that appeared under Item 1A, "Risk Factors" in the Company’s 2020 Annual Report on Form 10-K.

The risk factors set forth in our 2020 Form 10-K are updated by the following risks:

Risks Related to our Pending Acquisition

Our ability to complete the proposed acquisition of Valley is subject to the receipt of approval from various regulatory agencies.

Prior to the transactions contemplated in the Valley acquisition agreement being consummated, the Company and Valley must obtain certain regulatory approvals, including approvals of the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation and the California Department of Investor Protection and Innovation. The terms and conditions of the approvals that are granted may impose conditions, limitations, obligations or costs, or place restrictions on the conduct of the Company or its business following the acquisition, or require changes to the terms of the transactions completed by the Valley acquisition agreement. There can be no assurance that the regulators will not impose any such conditions, obligations or restrictions; and that such conditions, limitations, obligations or restrictions will not have the effect of delaying or preventing completion of any of the transactions contemplated by the Valley acquisition agreement, imposing additional material costs on or materially limiting the revenues of the Company following the acquisition or otherwise reduce the anticipated benefits of the acquisition if the acquisition was consummated successfully within the expected timeframe, any of which might have an adverse effect on the Company following the acquisition.

We face risks and uncertainties related to our proposed acquisitions of Valley.

Uncertainty about the effect of the proposed acquisition on personnel and customers may have an adverse effect on us. These uncertainties may impair our ability to attract, retain, and motivate key personnel until the acquisition is consummated and for a period of time thereafter, and could cause customers and others that deal with us to seek to change their existing business relationships with us. Employee retention may be particularly challenging during the pendency of the acquisition, as employees may experience uncertainty about their roles with the Company following the acquisition. The Valley branches to be acquired by the Company have operated and, until the completion of the acquisition, will continue to operate independently. The ultimate success of the acquisition, including anticipated benefits and cost savings, among other things, will depend, in part, on our ability to successfully combine and integrate our and Valley’s businesses in a manner that facilitates growth opportunities and realizes anticipated cost savings. It is possible that the integration process could result in the loss of key employees, the loss of customers, the disruption of the companies' ongoing business, unexpected integration issues, higher than expected integration costs, and an integration process that takes longer than originally anticipated. Also, if the Company experiences difficulties or delays with the integration process, the anticipated benefits of the acquisition may not be realized fully, or at all.

The definitive agreement between the Company and Valley may be terminated in accordance with its terms.

The Valley acquisition agreement is subject to a number of conditions which need to be fulfilled in order to consummate the proposed acquisition. These conditions include, among other things, the approval of Valley’s stockholders, the receipt of all required regulatory approvals, the absence of any order, injunction, or other legal restraint, subject to certain exceptions, the accuracy of representations and warranties under the Valley acquisition agreement, our and Valley’s performance of our and their respective obligations under the Valley acquisition agreement in all material aspects, and each of our and Valley’ receipt of a tax opinion to the effect that the acquisition will be treated as a "reorganization" within the meaning of Section 368(a) of the Internal Revenue Code of 1986, as amended.

The conditions to the closing of the acquisition may not be fulfilled in a timely manner or at all, and accordingly, the acquisition may be delayed or may not be completed. We and Valley may opt to terminate the Valley acquisition agreement under certain circumstances. Among other situations, if the acquisition is not completed by April 30, 2022, either we or Valley may choose not to proceed with the acquisition. We and Valley can also mutually decide to terminate the Valley acquisition agreement at any time.

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Shareholder litigation could prevent or delay the closing of the proposed acquisition of Valley or otherwise negatively impact our business and operations.

Lawsuits may be filed against us, Valley, or the directors and officers of either company relating to the proposed acquisition. Litigation filed against us, our Board of Directors, or Valley and its Board of Directors could prevent or delay the completion of the acquisition, cause us to incur additional costs, or result in the payment of damages following completion of the acquisition. The defense or settlement of any lawsuit or claim that remains unresolved at the effective time of the acquisition may adversely affect the combined company's business, financial condition, results of operation, cash flows, and market price.

Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds

The following table shows the repurchases made by the Company or any affiliated purchaser (as defined in Rule 10b-18(a)(3) under the Exchange Act) during the periods indicated:

Period	(a) Total number of shares purchased (1)	(b) Average price paid per share		(c) Total number of shares purchased as of part of publicly announced plans or programs	(d) Maximum number of shares that may yet be purchased under the plans or programs at period end (2)
April 1-30, 2021	19,058	$	46.53	11,900	1,988,100
May 1-31, 2021	17,035	46.79		15,700	1,972,400
June 1-30, 2021	25,396	46.06		17,754	1,954,646
Total	61,489	$	46.41	45,354

(1)Includes shares purchased by the Company’s Employee Stock Ownership Plan in open market purchases and shares tendered by employees pursuant to various other equity incentive plans. See Notes 8 and 9 to the condensed consolidated financial statements at Item 1 of Part I of this report, for a discussion of the Company’s stock repurchased under equity compensation plans.

(2)Does not include shares that may be purchased by the Company’s Employee Stock Ownership Plan and pursuant to various other equity incentive plans. See Note 8 to the condensed consolidated financial statements at Item 1 of Part I of this report, for a discussion of the Company’s stock repurchase plan.

Item 6 – Exhibits

EXHIBIT INDEX

Exhibit  No.	Exhibit
2.1	Agreement and Plan of Reorganization dated as of July 27, 2021, by and between TriCo Bancshares and Valley Republic Bancorp (incorporated by reference to Exhibit in TriCo's current report on Form 8-K filed on July 28, 2021).
31.1	Rule 13a-14(a)/15d-14(a) Certification of CEO
31.2	Rule 13a-14(a)/15d-14(a) Certification of CFO
32.1	Section 1350 Certification of CEO
32.2	Section 1350 Certification of CFO
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document

*Management contract or compensatory plan or arrangement

62

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	TRICO BANCSHARES
	(Registrant)
Date: August 6, 2021	/s/ Peter G. Wiese
	Peter G. Wiese
	Executive Vice President and Chief Financial Officer
	(Duly authorized officer and principal financial and chief accounting officer)

63

EX-31.1

Exhibit 31.1

Rule 13a-14(a)/15d-14(a) Certification of CEO

I, Richard P. Smith, certify that;

1.I have reviewed this report on Form 10-Q of TriCo Bancshares;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiary, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 6, 2021	/s/ Richard P. Smith
	Richard P. Smith
	President and Chief Executive Officer

EX-31.2

Exhibit 31.2

Rule 13a-14(a)/15d-14(a) Certification of CFO

I, Peter G. Wiese, certify that;

1.I have reviewed this report on Form 10-Q of TriCo Bancshares;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiary, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 6, 2021	/s/ Peter G. Wiese
	Peter G. Wiese
	Executive Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

Section 1350 Certification of CEO

In connection with the Quarterly Report of TriCo Bancshares (the “Company”) on Form 10-Q for the period ended June 30, 2021 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Richard P. Smith, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Richard P. Smith

Richard P. Smith

President and Chief Executive Officer

A signed original of this written statement required by Section 906 has been provided to TriCo Bancshares and will be retained by TriCo Bancshares and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

Section 1350 Certification of CFO

In connection with the Quarterly Report of TriCo Bancshares (the “Company”) on Form 10-Q for the period ended June 30, 2021 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Peter G. Wiese, Executive Vice President and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company

/s/ Peter G. Wiese

Peter G. Wiese

Executive Vice President and Chief Financial Officer

A signed original of this written statement required by Section 906 has been provided to TriCo Bancshares and will be retained by TriCo Bancshares and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Cover Page - shares	6 Months Ended
	Jun. 30, 2021	Aug. 06, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2021
Document Transition Report	false
Entity File Number	000-10661
Entity Incorporation, State or Country Code	CA
Entity Tax Identification Number	94-2792841
Entity Address, Address Line One	63 Constitution Drive
Entity Address, City or Town	Chico
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	95973
City Area Code	530
Local Phone Number	898-0300
Title of 12(b) Security	Common Stock
Trading Symbol	TCBK
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		29,711,934
Entity Registrant Name	TriCo Bancshares
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Entity Central Index Key	0000356171

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Assets:
Cash and due from banks	$ 86,052	$ 77,253
Cash at Federal Reserve and other banks	553,688	592,298
Cash and cash equivalents	639,740	669,551
Investment securities:
Marketable equity securities	2,979	3,025
Available for sale debt securities, net of allowance for credit losses of $—	1,847,568	1,414,264
Held to maturity debt securities, net of allowance for credit losses of $—	235,778	284,563
Restricted equity securities	17,250	17,250
Loans held for sale	5,723	6,268
Loans	4,944,894	4,763,127
Allowance for credit losses	(86,062)	(91,847)
Total loans, net	4,858,832	4,671,280
Premises and equipment, net	79,178	83,731
Cash value of life insurance	120,287	118,870
Accrued interest receivable	18,923	20,004
Goodwill	220,872	220,872
Other intangible assets, net	14,971	17,833
Operating leases, right-of-use	26,365	27,846
Other assets	81,899	84,172
Total assets	8,170,365	7,639,529
Deposits:
Noninterest-bearing demand	2,843,783	2,581,517
Interest-bearing	4,148,270	3,924,417
Total deposits	6,992,053	6,505,934
Accrued interest payable	1,026	1,362
Operating lease liability	26,707	27,973
Other liabilities	85,388	94,597
Other borrowings	40,559	26,914
Junior subordinated debt	57,852	57,635
Total liabilities	7,203,585	6,714,415
Commitments and contingencies (Note 7)
Shareholders’ equity:
Preferred stock, no par value: 1,000,000 shares authorized, zero issued and outstanding at June 30, 2021 and December 31, 2020	0	0
Common stock, no par value: 50,000,000 shares authorized; 29,716,294 and 29,727,214 issued and outstanding at June 30, 2021 and December 31, 2020, respectively	531,038	530,835
Retained earnings	427,575	381,999
Accumulated other comprehensive income, net of tax	8,167	12,280
Total shareholders’ equity	966,780	925,114
Total liabilities and shareholders’ equity	$ 8,170,365	$ 7,639,529

XML

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Available-for-sale, allowance for credit loss	$ 0	$ 0
Held-to-maturity, allowance for credit loss	$ 0	$ 0
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, shares authorized (in shares)	50,000,000	50,000,000
Common stock, shares issued (in shares)	29,716,294	29,727,214
Common stock, shares outstanding (in shares)	29,716,294	29,727,214

XML

Condensed Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Interest and dividend income:
Loans, including fees	$ 60,304	$ 58,409	$ 120,740	$ 114,667
Investments:
Taxable securities	6,934	7,466	13,111	15,677
Tax exempt securities	851	952	1,774	1,856
Dividends	255	223	472	584
Interest bearing cash at Federal Reserve and other banks	135	98	298	881
Total interest and dividend income	68,479	67,148	136,395	133,665
Interest expense:
Deposits	828	1,813	1,765	4,364
Other borrowings	5	4	9	9
Junior subordinated debt	563	672	1,098	1,441
Total interest expense	1,396	2,489	2,872	5,814
Net interest income	67,083	64,659	133,523	127,851
Provision for (reversal of) credit losses	(260)	22,244	(6,320)	30,313
Net interest income after credit loss provision (reversal)	67,343	42,415	139,843	97,538
Non-interest income:
Service charges and fees	10,930	8,168	21,406	17,294
Gain on sale of loans	2,847	1,736	6,094	2,627
Gain on sale of investment securities	0	0	0	0
Asset management and commission income	947	661	1,781	1,577
Increase in cash value of life insurance	745	710	1,418	1,430
Other	488	382	1,368	549
Total non-interest income	15,957	11,657	32,067	23,477
Non-interest expense:
Salaries and related benefits	27,081	27,055	52,411	54,327
Other	17,090	18,495	33,378	35,973
Total non-interest expense	44,171	45,550	85,789	90,300
Income before provision for income taxes	39,129	8,522	86,121	30,715
Provision for income taxes	10,767	1,092	24,110	7,164
Net income	$ 28,362	$ 7,430	$ 62,011	$ 23,551
Per share data:
Basic earnings per share (in USD per share)	$ 0.95	$ 0.25	$ 2.09	$ 0.78
Diluted earnings per share (in USD per share)	0.95	0.25	2.07	0.78
Dividend per share (in USD per share)	$ 0.25	$ 0.22	$ 0.50	$ 0.44

XML

Condensed Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Statement of Comprehensive Income [Abstract]
Net income	$ 28,362	$ 7,430	$ 62,011	$ 23,551
Other comprehensive income (loss), net of tax:
Unrealized gains (losses) on available for sale securities arising during the period	5,206	24,625	(3,484)	3,803
Change in minimum pension liability	0	1,126	0	2,038
Change in joint beneficiary agreements	0	0	(629)	0
Other comprehensive income (loss)	5,206	25,751	(4,113)	5,841
Comprehensive income	$ 33,568	$ 33,181	$ 57,898	$ 29,392

XML

Condensed Consolidated Statements of Changes In Shareholders' Equity - USD ($) $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	Cumulative Effect, Period Of Adoption, Adjusted Balance	Common Stock	Common Stock Cumulative Effect, Period Of Adoption, Adjusted Balance	Retained Earnings	Retained Earnings Cumulative Effect, Period of Adoption, Adjustment	Retained Earnings Cumulative Effect, Period Of Adoption, Adjusted Balance	Accumulated Other Comprehensive Income (Loss)	Accumulated Other Comprehensive Income (Loss) Cumulative Effect, Period Of Adoption, Adjusted Balance
Beginning balance at Dec. 31, 2019	$ 906,570	$ (12,983)	$ 893,587	$ 543,998	$ 543,998	$ 367,794	$ (12,983)	$ 354,811	$ (5,222)	$ (5,222)
Beginning balance (in shares) at Dec. 31, 2019				30,523,824	30,523,824
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	23,551					23,551
Other comprehensive income (loss)	5,841								5,841
Stock options exercised	288			$ 288
Stock options exercised (in shares)				16,000
RSU vesting	635			$ 635
PSU vesting	296			$ 296
RSUs released (in shares)				29,089
PSUs released (in shares)				20,265
Repurchase of common stock	(25,304)			$ (14,795)		(10,509)
Repurchase of common stock (in shares)				(829,969)
Dividends paid	(13,208)					(13,208)
Ending balance at Jun. 30, 2020	885,686			$ 530,422		354,645			619
Ending balance (in shares) at Jun. 30, 2020				29,759,209
Beginning balance at Mar. 31, 2020	866,426			$ 534,623		356,935			(25,132)
Beginning balance (in shares) at Mar. 31, 2020				29,973,516
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	7,430					7,430
Other comprehensive income (loss)	25,751								25,751
Stock options exercised	140			$ 140
Stock options exercised (in shares)				8,000
RSU vesting	338			$ 338
PSU vesting	154			$ 154
RSUs released (in shares)				28,727
PSUs released (in shares)				20,265
Repurchase of common stock	(8,009)			$ (4,833)		(3,176)
Repurchase of common stock (in shares)				(271,299)
Dividends paid	(6,544)					(6,544)
Ending balance at Jun. 30, 2020	885,686			$ 530,422		354,645			619
Ending balance (in shares) at Jun. 30, 2020				29,759,209
Beginning balance at Dec. 31, 2020	$ 925,114			$ 530,835		381,999			12,280
Beginning balance (in shares) at Dec. 31, 2020	29,727,214			29,727,214
Ending balance at Mar. 31, 2021	$ 942,539			$ 531,367		408,211			2,961
Ending balance (in shares) at Mar. 31, 2021				29,727,122
Beginning balance at Dec. 31, 2020	$ 925,114			$ 530,835		381,999			12,280
Beginning balance (in shares) at Dec. 31, 2020	29,727,214			29,727,214
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	$ 62,011					62,011
Other comprehensive income (loss)	(4,113)								(4,113)
Stock options exercised	$ 28			$ 28
Stock options exercised (in shares)	1,675			1,675
RSU vesting	$ 757			$ 757
PSU vesting	406			$ 406
RSUs released (in shares)				42,712
Repurchase of common stock	(2,561)			$ (988)		(1,573)
Repurchase of common stock (in shares)				(55,307)
Dividends paid	(14,862)					(14,862)
Ending balance at Jun. 30, 2021	$ 966,780			$ 531,038		427,575			8,167
Ending balance (in shares) at Jun. 30, 2021	29,716,294			29,716,294
Beginning balance at Mar. 31, 2021	$ 942,539			$ 531,367		408,211			2,961
Beginning balance (in shares) at Mar. 31, 2021				29,727,122
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	28,362					28,362
Other comprehensive income (loss)	5,206								5,206
Stock options exercised	28			$ 28
Stock options exercised (in shares)				1,675
RSU vesting	405			$ 405
PSU vesting	221			$ 221
RSUs released (in shares)				42,511
PSUs released (in shares)				0
Repurchase of common stock	(2,551)			$ (983)		(1,568)
Repurchase of common stock (in shares)				(55,014)
Dividends paid	(7,430)					(7,430)
Ending balance at Jun. 30, 2021	$ 966,780			$ 531,038		$ 427,575			$ 8,167
Ending balance (in shares) at Jun. 30, 2021	29,716,294			29,716,294

XML

Condensed Consolidated Statements of Changes In Shareholders' Equity (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Common Stock
Dividends paid, per share (in USD per share)	$ 0.25	$ 0.22	$ 0.50	$ 0.44

XML

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Operating activities:
Net income	$ 62,011	$ 23,551
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of premises and equipment, and amortization	3,357	3,193
Amortization of intangible assets	2,862	2,862
Provision for (reversal of) credit losses on loans	(6,385)	30,089
Amortization of investment securities premium, net	2,855	1,054
Gain on sale of investment securities	0	0
Originations of loans for resale	(129,684)	(84,872)
Proceeds from sale of loans originated for resale	135,353	83,867
Gain on sale of loans	(6,094)	(2,627)
Change in market value of mortgage servicing rights	459	2,494
Provision for losses on foreclosed assets	9	106
Gain on transfer of loans to foreclosed assets	(20)	0
Gain on sale of foreclosed assets	(46)	(57)
Operating lease expense payments	(2,430)	(2,480)
(Gain) loss on disposal of fixed assets	(426)	15
Increase in cash value of life insurance	(1,418)	(1,430)
Loss (gain) on marketable equity securities	45	(72)
Equity compensation vesting expense	1,163	931
Change in:
Interest receivable	1,081	(1,440)
Interest payable	(336)	(673)
Amortization of operating lease ROUA	2,645	2,720
Other assets and liabilities, net	(6,195)	6,474
Net cash from operating activities	58,806	63,705
Investing activities:
Proceeds from maturities of securities available for sale	180,046	60,637
Proceeds from maturities of securities held to maturity	48,269	37,905
Purchases of securities available for sale	(620,634)	(101,899)
Loan origination and principal collections, net	(79,803)	(493,437)
Loans purchased	(101,466)	0
Proceeds from sale of other real estate owned	756	570
Proceeds from sale of premises and equipment	2,700	0
Purchases of premises and equipment	(854)	(1,266)
Net cash used by investing activities	(570,986)	(497,490)
Financing activities:
Net change in deposits	486,119	881,264
Net change in other borrowings	13,645	20,090
Repurchase of common stock, net of option exercises	(2,561)	(25,164)
Dividends paid	(14,862)	(13,208)
Exercise of stock options	28	148
Net cash from financing activities	482,369	863,130
Net change in cash and cash equivalents	(29,811)	429,345
Cash and cash equivalents, beginning of period	669,551	276,507
Cash and cash equivalents, end of period	639,740	705,852
Supplemental disclosure of noncash activities:
Unrealized (loss) gain on securities available for sale	(4,945)	5,398
Market value of shares tendered in-lieu of cash to pay for exercise of options and/or related taxes	451	494
Obligations incurred in conjunction with leased assets	1,308	4,068
Loans transferred to foreclosed assets	102	0
Supplemental disclosure of cash flow activity:
Cash paid for interest expense	3,208	6,487
Cash paid for income taxes	$ 33,300	$ 0

XML

Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2021

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Description of Business and Basis of Presentation

TriCo Bancshares (the “Company” or “we”) is a California corporation organized to act as a bank holding company for Tri Counties Bank (the “Bank”). The Company and the Bank are headquartered in Chico, California. The Bank is a California-chartered bank that is engaged in the general commercial banking business in 28 California counties. The Company has five capital subsidiary business trusts (collectively, the “Capital Trusts”) that issued trust preferred securities, including two organized by the Company and three acquired with the acquisition of North Valley Bancorp.

The consolidated financial statements are prepared in accordance with accounting policies generally accepted in the United States of America and general practices in the banking industry. All adjustments necessary for a fair presentation of these consolidated financial statements have been included and are of a normal and recurring nature. The financial statements include the accounts of the Company. All inter-company accounts and transactions have been eliminated in consolidation. For financial reporting purposes, the Company’s investments in the Capital Trusts of $1,737,000 are accounted for under the equity method and, accordingly, are not consolidated and are included in other assets on the consolidated balance sheet. The subordinated debentures issued and guaranteed by the Company and held by the Capital Trusts are reflected as debt on the Company’s consolidated balance sheet.

Use of Estimates in the Preparation of Financial Statements

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 (the “2020 Annual Report”). The Company believes that the disclosures made are adequate to make the information not misleading.

Segment and Significant Group Concentration of Credit Risk

The Company grants agribusiness, commercial, consumer, and residential loans to customers located throughout northern and central California. The Company has a diversified loan portfolio within the business segments located in this geographical area. The Company currently classifies all its operation into one business segment that it denotes as community banking.

Geographical Descriptions

For the purpose of describing the geographical location of the Company’s operations, the Company has defined northern California as that area of California north of, and including, Stockton to the east and San Jose to the west; central California as that area of the state south of Stockton and San Jose, to and including, Bakersfield to the east and San Luis Obispo to the west; and southern California as that area of the state south of Bakersfield and San Luis Obispo.

Reclassification

Some items in the prior year consolidated financial statements were reclassified to conform to the current presentation. Reclassifications had no effect on prior year net income or shareholders’ equity.

Cash and Cash Equivalents

Net cash flows are reported for loan and deposit transactions and other borrowings. For purposes of the consolidated statement of cash flows, cash, due from banks with original maturities less than 90 days, interest-earning deposits in other banks, and Federal funds sold are considered to be cash equivalents.

Allowance for Credit Losses - Securities

The Company measures expected credit losses on held-to-maturity debt securities on a collective basis by major security type, then further

disaggregated by sector and bond rating. Accrued interest receivable on held-to-maturity (HTM) debt securities totaled was considered insignificant at June 30, 2021 and is therefore excluded from the estimate of credit losses. The estimate of expected credit losses considers historical credit loss information that is adjusted for current condition and reasonable and supportable forecasts based on current and expected changes in credit ratings and default rates. Based on the implied guarantees of the U. S. Government or its agencies related to certain of these investment securities, and the absence of any historical or expected losses, substantially all qualify for a zero loss assumption. Management has separately evaluated its HTM investment securities from obligations of state and political subdivisions utilizing the historical loss data represented by similar securities over a period of time spanning nearly 50 years. As a result of this evaluation, management determined that the expected credit losses associated with these securities is not significant for financial reporting purposes and therefore, no allowance for credit losses has been recognized.

The Company evaluates available for sale debt securities in an unrealized loss position to determine whether the decline in the fair value below the amortized cost basis (impairment) is due to credit-related factors or noncredit-related factors. Any impairment that is not credit related is recognized in other comprehensive income, net of applicable taxes. Credit-related impairment is recognized as an allowance for credit losses on the balance sheet, limited to the amount by which the amortized cost basis exceeds the fair value, with a corresponding adjustment to earnings. Both the allowance for credit losses and the adjustment to net income may be reversed if conditions change. However, if the Company intends to sell an impaired available for sale debt security or more likely than not will be required to sell such a security before recovering its amortized cost basis, the entire impairment amount is recognized in earnings with a corresponding adjustment to the security's amortized cost basis. In evaluating available for sale debt securities in unrealized loss positions for impairment and the criteria regarding its intent or requirement to sell such securities, the Company considers the extent to which fair value is less than amortized cost, whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuers' financial condition, among other factors. Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the ACL when management believes the uncollectability of an available for sale debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met. No security credit losses were recognized during the six month periods ended June 30, 2021 and 2020, respectively.

Loans

Loans that management has the intent and ability to hold until maturity or payoff are reported at principle amount outstanding, net of deferred loan fees and costs. Loans are placed in nonaccrual status when reasonable doubt exists as to the full, timely collection of interest or principal, or a loan becomes contractually past due by 90 days or more with respect to interest or principal and is not well secured and in the process of collection. When a loan is placed on nonaccrual status, all interest previously accrued but not collected is reversed against interest income. Income on such loans is then recognized only to the extent that cash is received and where the future collection of principal is considered probable. Interest accruals are resumed on such loans only when they are brought fully current with respect to interest and principal and when, in the judgment of Management, the loan is estimated to be fully collectible as to both principal and interest. Accrued interest receivable is not included in the calculation of the allowance for credit losses.

Allowance for Credit Losses - Loans

The allowance for credit losses (ACL) is a valuation account that is deducted from the loan's amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when management believes the recorded loan balance is confirmed as uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Regardless of the determination that a charge-off is appropriate for financial accounting purposes, the Company manages its loan portfolio by continually monitoring, where possible, a borrower's ability to pay through the collection of financial information, delinquency status, borrower discussion and the encouragement to repay in accordance with the original contract or modified terms, if appropriate.

Management estimates the allowance balance using relevant information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. The allowance for credit losses is measured on a collective (pool) basis when similar risk characteristics exist. Historical credit loss experience provides the basis for the estimation of expected credit losses, which captures loan balances as of a point in time to form a cohort, then tracks the respective losses generated by that cohort of loans over the remaining life. The Company identified and accumulated loan cohort historical loss data beginning with the fourth quarter of 2008 and through the current period. In situations where the Company's actual loss history was not statistically relevant, the loss history of peers, defined as financial institutions with assets greater than three billion and less than ten billion, were utilized to create a minimum loss rate. Adjustments to historical loss information are made for differences in relevant current loan-specific risk characteristics, such as historical timing of losses relative to the loan origination. In its loss forecasting framework, the Company incorporates forward-looking information through the use of macroeconomic scenarios applied over the forecasted life of the assets. These macroeconomic scenarios incorporate variables that have historically been key drivers of increases and decreases in credit losses. These variables include, but are not limited to changes in environmental conditions, such as California unemployment rates, household debt levels and U.S. gross domestic product.

A loan is considered to be collateral dependent when repayment is expected to be provided substantially through the operation or sale of the collateral. The ACL on collateral dependent loans is measured using the fair value of the underlying collateral, adjusted for costs to

sell when applicable, less the amortized cost basis of the financial asset. If the value of underlying collateral is determined to be less than the recorded amount of the loan, a charge-off will be taken. Loans for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, is considered to be a troubled debt restructuring (TDR). The ACL on a TDR is measured using the same method as all other portfolio loans, except when the value of a concession cannot be measured using a method other than the discounted cash flow method. When the value of a concession is measured using the discounted cash flow method, the ACL is determined by discounting the expected future cash flows at the original interest rate of the loan.

The Company has identified the following portfolio segments to evaluate and measure the allowance for credit loss:

Commercial real estate:

Commercial real estate - Non-owner occupied: These commercial properties typically consist of buildings which are leased to others for their use and rely on rents as the primary source of repayment. Property types are predominantly office, retail, or light industrial but the portfolio also has some special use properties. As such, the risk of loss associated with these properties is primarily driven by general economic changes or changes in regional economies and the impact of such on a tenant’s ability to pay. Ultimately this can affect occupancy, rental rates, or both. Additional risk of loss can come from new construction resulting in oversupply, the costs to hold or operate the property, or changes in interest rates. The terms on these loans at origination typically have maturities from five to ten years with amortization periods from fifteen to thirty years.

Commercial real estate - Owner occupied: These credits are primarily susceptible to changes in the financial condition of the business operated by the property owner. This may be driven by changes in, among other things, industry challenges, factors unique to the operating geography of the borrower, change in the individual fortunes of the business owner, general economic conditions and changes in business cycles. When default is driven by issues related specifically to the business owner, collateral values tend to provide better repayment support and may result in little or no loss. Alternatively, when default is driven more by general economic conditions, the underlying collateral may have devalued more and thus result in larger losses in the event of default. The terms on these loans at origination typically have maturities from five to ten years with amortization periods from fifteen to thirty years.

Multifamily: These commercial properties are generally comprised of more than four rentable units, such as apartment buildings, with each unit intended to be occupied as the primary residence for one or more persons. Multifamily properties are also subject to changes in general or regional economic conditions, such as unemployment, ultimately resulting in increased vacancy rates or reduced rents or both. In addition, new construction can create an oversupply condition and market competition resulting in increased vacancy, reduced market rents, or both. Due to the nature of their use and the greater likelihood of tenant turnover, the management of these properties is more intensive and therefore is more critical to the preclusion of loss.

Farmland: While the Company has few loans that were originated for the purpose of the acquisition of these commercial properties, loans secured by farmland represent unique risks that are associated with the operation of an agricultural businesses. The valuation of farmland can vary greatly over time based on the property's access to resources including but not limited to water, crop prices, foreign exchange rates, government regulation or restrictions, and the nature of ongoing capital investment needed to maintain the quality of the property. Loans secured by farmland typically represent less risk to the Company than other agriculture loans as the real estate typically provides greater support in the event of default or need for longer term repayment.

Consumer loans:

SFR 1-4 1st DT Liens: The most significant drivers of potential loss within the Company's residential real estate portfolio relate general, regional, or individual changes in economic conditions and their effect on employment and borrowers cash flow. Risk in this portfolio is best measured by changes in borrower credit score and loan-to-value. Loss estimates are based on the general movement in credit score, economic outlook and its effects on employment and the value of homes and the Bank’s historical loss experience adjusted to reflect the economic outlook and the unemployment rate.

SFR HELOCs and Junior Liens: Similar to residential real estate term loans, HELOCs and junior liens performance is also primarily driven by borrower cash flows based on employment status. However, HELOCs carry additional risks associated with the fact that most of these loans are secured by a deed of trust in a position that is junior to the primary lien holder. Furthermore, the risk that as the borrower's financial strength deteriorates, the outstanding balance on these credit lines may increase as they may only be canceled by the Company if certain limited criteria are met. In addition to the allowance for credit losses maintained as a percent of the outstanding loan balance, the Company maintains additional reserves for the unfunded portion of the HELOC.

Other: The majority of consumer loans are secured by automobiles, with the remainder primarily unsecured revolving debt (credit cards). These loans are susceptible to three primary risks; non-payment due to income loss, over-extension of credit and, when the borrower is unable to pay, shortfall in collateral value, if any. Typically non-payment is due to loss of job and will follow general economic trends in the marketplace driven primarily by rises in the unemployment rate. Loss of collateral value can be due to market demand shifts, damage to collateral itself or a combination of those factors. Credit card loans are unsecured and while collection efforts are pursued in the event of default, there is typically limited opportunity for recovery. Loss estimates are based on the general movement in credit score, economic outlook and its effects on employment and the Bank’s historical loss experience adjusted to reflect the economic outlook and the unemployment rate.

Commercial and Industrial:

Repayment of these loans is primarily based on the cash flow of the borrower, and secondarily on the underlying collateral provided by the borrower. A borrower's cash flow may be unpredictable, and collateral securing these loans may fluctuate in value. Most often, collateral includes accounts receivable, inventory, or equipment. Collateral securing these loans may depreciate over time, may be difficult to appraise, may be illiquid and may fluctuate in value based on the success of the business. Actual and forecast changes in gross domestic product are believed to be corollary to losses associated with these credits.

Construction:

While secured by real estate, construction loans represent a greater level of risk than term real estate loans due to the nature of the additional risks associated with the not only the completion of construction within an estimated time period and budget, but also the need to either sell the building or reach a level of stabilized occupancy sufficient to generate the cash flows necessary to support debt service and operating costs. The Company seeks to mitigate the additional risks associated with construction lending by requiring borrowers to comply with lower loan to value ratios and additional covenants as well as strong tertiary support of guarantors. The loss forecasting model applies the historical rate of loss for similar loans over the expected life of the asset as adjusted for macroeconomic factors.

Agriculture Production:

Repayment of agricultural loans is dependent upon successful operation of the agricultural business, which is greatly impacted by factors outside the control of the borrower. These factors include adverse weather conditions, including access to water, that may impact crop yields, loss of livestock due to disease or other factors, declines in market prices for agriculture products, changes in foreign exchange, and the impact of government regulations. In addition, many farms are dependent on a limited number of key individuals whose injury or death may significantly affect the successful operation of the business. Consequently, agricultural production loans may involve a greater degree of risk than other types of loans.

Leases:

The loss forecasting model applies the historical rate of loss for similar loans over the expected life of the asset. Leases typically represent an elevated level of credit risk as compared to loans secured by real estate as the collateral for leases is often subject to a more rapid rate of depreciation or depletion. The ultimate severity of loss is impacted by the type of collateral securing the exposure, the size of the exposure, the borrower’s industry sector, any guarantors and the geographic market. Assumptions of expected loss are conditioned to the economic outlook and the other variables discussed above.

Unfunded commitments:

The estimated credit losses associated with these unfunded lending commitments is calculated using the same models and methodologies noted above and incorporate utilization assumptions at time of default. The reserve for unfunded commitments is maintained on the consolidated balance sheet in other liabilities.

Accounting Standards Adopted in 2021

On January 1, 2021, the Company adopted ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This ASU simplified the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The guidance also promoted consistent application and simplification of GAAP for other areas of Topic 740 by clarifying and amending existing guidance.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted in response to the Coronavirus Disease 2019 (COVID-19) pandemic. The CARES Act provides optional temporary relief from troubled debt restructuring and impairment accounting requirements for loan modifications related to the COVID-19 pandemic made during the period from March 1, 2020 to the earlier of December 31, 2020 or 60 days after the national emergency concerning COVID-19 declared by the President terminates. The applicable period for this relief was extended through 2021 by way of the Consolidated Appropriations Act. Following the passage of the CARES Act legislation, the "Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus" was issued by federal bank regulators, which similarly offers temporary relief from troubled debt restructuring accounting for loan payment deferrals for certain customers whose businesses are experiencing economic hardship due to Coronavirus. The Interagency Statement requires the modification event to be short-term and COVID-19 related, requiring the borrower be not more than 30 days past due as of the date the modification program was implemented, and allowing Management to apply judgement as when the modification program terminates. The ability to suspend TDR accounting under either program does not apply to any adverse impact on the credit of a borrower that is not related to the COVID-19 pandemic.

Accounting Standards Pending Adoption

FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU provides temporary optional guidance to ease the potential burden in accounting for reference rate reform by providing optional expedients and exceptions for applying generally accepted accounting principles (GAAP) to contracts, hedging

relationships, and other transactions affected if certain criteria are met. The amendments in this Update apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The election to apply the optional relief for existing fair value and cash flow hedge accounting relationships may be made on a hedge-by-hedge basis and across multiple reporting periods. Amendments in this ASU are effective for the Company through December 31, 2022. As the Company has an insignificant number of instruments that are applicable to this ASU, management has determined that no impact to the valuations of these instruments are applicable for financial reporting purposes.

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Investment Securities

6 Months Ended

Jun. 30, 2021

Investments, Debt and Equity Securities [Abstract]

Investment Securities

Investment Securities

The amortized cost, estimated fair values and allowance for credit losses of investments in debt securities are summarized in the following tables:

	June 30, 2021
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Estimated Fair Value
Debt Securities Available for Sale
Obligations of U.S. government agencies	$	1,126,342	$	11,628	$	(4,554)	$	—	$	1,133,416
Obligations of states and political subdivisions	141,168		6,208		(452)		—		146,924
Corporate bonds	2,473		83		—		—		2,556
Asset backed securities	563,347		2,941		(1,616)		—		564,672
Total debt securities available for sale	$	1,833,330	$	20,860	$	(6,622)	$	—	$	1,847,568

Debt Securities Held to Maturity
Obligations of U.S. government agencies	$	226,925	$	10,926	$	—	$	—	$	237,851
Obligations of states and political subdivisions	8,853		315		—		—		9,168
Total debt securities held to maturity	$	235,778	$	11,241	$	—	$	—	$	247,019

	December 31, 2020
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Estimated Fair Value
Debt Securities Available for Sale
Obligations of U.S. government agencies	$	795,555	$	17,710	$	(891)	$	—	$	812,374
Obligations of states and political subdivisions	123,347		5,748		—		—		129,095
Corporate bonds	2,459		85		—		—		2,544
Asset backed securities	473,720		1,682		(5,151)		—		470,251
Total debt securities available for sale	$	1,395,081	$	25,225	$	(6,042)	$	—	$	1,414,264
Debt Securities Held to Maturity
Obligations of U.S. government agencies	273,667		13,774		—		$	—	287,441
Obligations of states and political subdivisions	10,896		389		—		—		11,285
Total debt securities held to maturity	$	284,563	$	14,163	$	—	$	—	$	298,726

There were no sales of investment securities during the three and six months ended June 30, 2021 and 2020, respectively. Investment securities with an aggregate carrying value of $456,446,000 and $429,049,000 at June 30, 2021 and December 31, 2020, respectively, were pledged as collateral for specific borrowings, lines of credit or local agency deposits.

The amortized cost and estimated fair value of debt securities at June 30, 2021 by contractual maturity are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. At June 30, 2021, obligations of U.S. government corporations and agencies with a cost basis totaling $1,104,406,000 consist almost entirely of residential real estate mortgage-backed securities whose contractual maturity, or principal repayment, will follow the repayment of the underlying mortgages. For purposes of the following table, the entire outstanding balance of these mortgage-backed securities issued by U.S. government corporations and agencies is categorized based on final maturity date. At June 30, 2021, the Company estimates the average remaining life of these mortgage-backed securities issued by U.S. government corporations and agencies to be approximately 4.21 years. Average remaining life is defined as the time span after which the principal balance has been reduced by half.

As of June 30, 2021, the contractual final maturity for available for sale and held to maturity investment securities is as follows:

Debt Securities	Available for Sale				Held to Maturity
(in thousands)	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Due in one year	$	1,093	$	1,117	$	—	$	—
Due after one year through five years	181,624		181,791		1,011		1,125
Due after five years through ten years	337,145		338,985		20,641		21,363
Due after ten years	1,313,468		1,325,675		214,126		224,531
Totals	$	1,833,330	$	1,847,568	$	235,778	$	247,019

Gross unrealized losses on debt securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows:

June 30, 2021:	Less than 12 months				12 months or more				Total
(in thousands)	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Debt Securities Available for Sale
Obligations of U.S. government agencies	$	566,137	$	(4,554)	$	—	$	—	$	566,137	$	(4,554)
Obligations of states and political subdivisions	24,207		(452)		—		—		24,207		(452)
Asset backed securities	103,518		(394)		152,895		(1,222)		256,413		(1,616)
Total debt securities available for sale	$	693,862	$	(5,400)	$	152,895	$	(1,222)	$	846,757	$	(6,622)

December 31, 2020:	Less than 12 months				12 months or more				Total
(in thousands)	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Debt Securities Available for Sale
Obligations of U.S. government agencies	$	160,543	$	(891)	$	—	$	—	$	160,543	$	(891)
Asset backed securities	51,544		(441)		297,020		(4,710)		348,564		(5,151)
Total debt securities available for sale	$	212,087	$	(1,332)	$	297,020	$	(4,710)	$	509,107	$	(6,042)

Obligations of U.S. government agencies: The unrealized losses on investments in obligations of U.S. government agencies are caused by interest rate increases and illiquidity. The contractual cash flows of these securities are guaranteed by U.S. Government Sponsored Entities (principally Fannie Mae and Freddie Mac). It is expected that the securities would not be settled at a price less than the amortized cost of the investment.Because management believes the decline in fair value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell and more likely than not will not be required to sell, there is no impairment on these securities and there has been no allowance for credit losses recorded. At June 30, 2021, 32 debt securities representing obligations of U.S. government agencies had unrealized losses with aggregate depreciation of 0.80% from the Company’s amortized cost basis.

Obligations of states and political subdivisions: The unrealized losses on investments in obligations of states and political subdivisions were caused by increases in required yields by investors in these types of securities. It is expected that the securities would not be settled at a price less than the amortized cost of the investment. Because management believes the decline in fair value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell and more likely than not will not be required to sell, there is no impairment on these securities and there has been no allowance for credit losses recorded as of June 30, 2021. At June 30, 2021, six debt securities representing obligations of states and political subdivisions had unrealized losses with aggregate depreciation of 1.83% from the Company’s amortized cost basis.

Asset backed securities: The unrealized losses on investments in asset backed securities were caused by increases in required yields by investors for these types of securities. At the time of purchase, each of these securities was rated AA or AAA and through June 30, 2021 has not experienced any deterioration in credit rating. At June 30, 2021, 18 asset backed securities had unrealized losses with aggregate depreciation of 0.63% from the Company’s amortized cost basis. The Company continues to monitor these securities for changes in credit rating or other indications of credit deterioration. Because management believes the decline in fair value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell and more likely than not will not be required to sell, there is no impairment on these securities and there has been no allowance for credit losses recorded as of June 30, 2021.

The Company monitors credit quality of debt securities held-to-maturity through the use of credit rating. The Company monitors the credit rating on a monthly basis. The following table summarizes the amortized cost of debt securities held-to-maturity at the dates indicated, aggregated by credit quality indicator:

	June 30, 2021				December 31, 2020
	AAA/AA/A		BBB/BB/B		AAA/AA/A		BBB/BB/B
	(In thousands)				(In thousands)
Debt Securities Held to Maturity
Obligations of U.S. government agencies	$	226,925	$	—	$	273,667	$	—
Obligations of states and political subdivisions	8,853		—		10,896		—
Total debt securities held to maturity	$	235,778	$	—	$	284,563	$	—

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Loans

6 Months Ended

Jun. 30, 2021

Receivables [Abstract]

Loans

Loans

A summary of loan balances follows:

(in thousands)	June 30, 2021		December 31, 2020
Commercial real estate:
CRE non-owner occupied	$	1,534,256	$	1,535,555
CRE owner occupied	659,948		624,375
Multifamily	828,101		639,480
Farmland	172,031		152,492
Total commercial real estate loans	3,194,336		2,951,902
Consumer:
SFR 1-4 1st DT liens	654,373		546,592
SFR HELOCs and junior liens	325,127		327,484
Other	71,109		78,032
Total consumer loans	1,050,609		952,108
Commercial and industrial	452,069		526,327
Construction	200,714		284,842
Agriculture production	41,967		44,164
Leases	5,199		3,784
Total loans, net of deferred loan fees and discounts	$	4,944,894	$	4,763,127
Total principal balance of loans owed, net of charge-offs	$	4,984,824	$	4,805,596
Unamortized net deferred loan fees	(19,843)		(16,984)
Discounts to principal balance of loans owed, net of charge-offs	(20,087)		(25,485)
Total loans, net of unamortized deferred loan fees and discounts	$	4,944,894	$	4,763,127
Allowance for credit losses on loans	$	(86,062)	$	(91,847)

As of June 30, 2021, the total gross balance outstanding of PPP loans (included within commercial and industrial) was $248,582,000 as compared to total PPP originations of $640,410,000. In connection with the origination of these loans, the Company earned approximately $25,299,000 in loan fees, offset by deferred loan costs of approximately $1,245,000, the net of which will be recognized over the earlier of loan maturity (between 24-60 months), repayment or receipt of forgiveness confirmation. As of June 30, 2021 there was approximately $8,990,000 in net deferred fee income remaining to be recognized, as compared to $7,212,000 in remaining net deferred fee income as of December 31, 2020. During the three and six months ended June 30, 2021, the Company recognized $2,344,000 and $7,304,000, respectively in fees on PPP loans. During the three and six months ended June 30, 2020, the Company recognized $2,356,000, respectively, in fees on PPP loans.

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Allowance for Credit Losses

6 Months Ended

Jun. 30, 2021

Allowance For Loan And Lease Losses [Abstract]

Allowance for Credit Losses

Allowance for Credit Losses

For the periods indicated, the following tables summarize the activity in the allowance for credit losses on loans which is recorded as a contra asset, and the reserve for unfunded commitments which is recorded on the balance sheet within other liabilities:

	Allowance for credit losses – Three months ended June 30, 2021
(in thousands)	Beginning Balance		Charge-offs		Recoveries		Provision (benefit)		Ending  Balance
Commercial real estate:
CRE non-owner occupied	$	26,434	$	—	$	—	$	(406)	$	26,028
CRE owner occupied	9,874		—		—		589		10,463
Multifamily	12,371		—		—		825		13,196
Farmland	1,724		—		—		226		1,950
Total commercial real estate loans	50,403		—		—		1,234		51,637
Consumer:
SFR 1-4 1st DT liens	10,665		—		1		(37)		10,629
SFR HELOCs and junior liens	11,079		—		512		(890)		10,701
Other	2,860		(86)		59		(213)		2,620
Total consumer loans	24,604		(86)		572		(1,140)		23,950
Commercial and industrial	4,464		(301)		79		269		4,511
Construction	5,476		—		—		(525)		4,951
Agriculture production	988		—		2		17		1,007
Leases	6		—		—		—		6
Allowance for credit losses on loans	85,941		(387)		653		(145)		86,062
Reserve for unfunded commitments	3,580		—		—		(115)		3,465
Total	$	89,521	$	(387)	$	653	$	(260)	$	89,527

	Allowance for credit losses – Six months ended June 30, 2021
(in thousands)	Beginning Balance		Charge-offs		Recoveries		Provision (benefit)		Ending  Balance
Commercial real estate:
CRE non-owner occupied	$	29,380	$	—	$	2	$	(3,354)	$	26,028
CRE owner occupied	10,861		—		1		(399)		10,463
Multifamily	11,472		—		—		1,724		13,196
Farmland	1,980		—		—		(30)		1,950
Total commercial real estate loans	53,693		—		3		(2,059)		51,637
Consumer:
SFR 1-4 1st DT liens	10,117		—		11		501		10,629
SFR HELOCs and junior liens	11,771		—		797		(1,867)		10,701
Other	3,260		(279)		165		(526)		2,620
Total consumer loans	25,148		(279)		973		(1,892)		23,950
Commercial and industrial	4,252		(334)		215		378		4,511
Construction	7,540		—		—		(2,589)		4,951
Agriculture production	1,209		—		22		(224)		1,007
Leases	5		—		—		1		6
Allowance for credit losses on loans	91,847		(613)		1,213		(6,385)		86,062
Reserve for unfunded commitments	3,400		—		—		65		3,465
Total	$	95,247	$	(613)	$	1,213	$	(6,320)	$	89,527

In determining the allowance for credit losses, accruing loans with similar risk characteristics are generally evaluated collectively. To estimate expected losses the Company generally utilizes historical loss trends and the remaining contractual lives of the loan portfolios to determine estimated credit losses through a reasonable and supportable forecast period. Individual loan credit quality indicators including loan grade and borrower repayment performance have been statistically correlated with historical credit losses and various econometrics, including California unemployment, gross domestic product, and corporate bond yields. Model forecasts may be adjusted for inherent limitations or biases that have been identified through independent validation and back-testing of model performance to actual realized results.

The Company utilizes a forecast period of approximately eight quarters and obtains the forecast data from publicly available sources as of the balance sheet date. This forecast data continues to evolve and included significant shifts in the magnitude of changes for both the unemployment and GDP factors leading up to the balance sheet date. Management noted that the majority of economic forecasts utilized

in the ACL calculation seem to have rebounded slightly in the current quarter, coinciding with the widespread availability of vaccines, continued easing of occupancy and social distancing restrictions, and continued government stimulus efforts. Management believes that the allowance for credit losses at June 30, 2021 appropriately reflected expected credit losses inherent in the loan portfolio at that date.

	Allowance for credit losses – Year ended December 31, 2020
(in thousands)	Beginning Balance		Adoption of CECL		Charge-offs		Recoveries		Provision (benefit)		Ending Balance
Commercial real estate:
CRE non-owner occupied	$	5,948	$	6,701	$	—	$	198	$	16,533	$	29,380
CRE owner occupied	2,027		2,281		—		28		6,525		10,861
Multifamily	3,352		2,281		—		—		5,839		11,472
Farmland	668		585		(182)		—		909		1,980
Total commercial real estate loans	11,995		11,848		(182)		226		29,806		53,693
Consumer:
SFR 1-4 1st DT liens	2,306		2,675		(13)		416		4,733		10,117
SFR HELOCs and junior liens	6,183		4,638		(116)		304		762		11,771
Other	1,595		971		(670)		347		1,017		3,260
Total consumer loans	10,084		8,284		(799)		1,067		6,512		25,148
Commercial and industrial	4,867		(1,961)		(774)		568		1,552		4,252
Construction	3,388		933		—		—		3,219		7,540
Agriculture production	261		(179)		—		24		1,103		1,209
Leases	21		(12)		—		—		(4)		5
Allowance for credit losses on loans	30,616		18,913		(1,755)		1,885		42,188		91,847
Reserve for unfunded commitments	2,775		—		—		—		625		3,400
Total	$	33,391	$	18,913	$	(1,755)	$	1,885	$	42,813	$	95,247

On January 1, 2020, the Company adopted ASU 2016-03 Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which replaces the incurred loss methodology that is referred to as the current expected credit loss (CECL) methodology. The Company recognized an increase in the ACL for loans totaling $18,913,000, including a reclassification of $481,000 from discounts on acquired loans to the allowance for credit losses, as a cumulative effect adjustment from change in accounting policies, with a corresponding decrease in retained earnings, net of $5,449,000 in taxes of $12,983,000.

	Allowance for credit losses – Three months ended June 30, 2020
(in thousands)	Beginning Balance		Charge-offs		Recoveries		Provision		Ending Balance
Commercial real estate:
CRE non-owner occupied	$	18,034	$	—	$	5	$	8,052	$	26,091
CRE owner occupied	5,366		—		4		3,340		8,710
Multifamily	5,140		—		—		3,441		8,581
Farmland	713		—		—		755		1,468
Total commercial real estate loans	29,253		—		9		15,588		44,850
Consumer:
SFR 1-4 1st DT liens	5,650		(11)		2		2,374		8,015
SFR HELOCs and junior liens	11,196		(23)		92		843		12,108
Other	2,746		(243)		72		467		3,042
Total consumer loans	19,592		(277)		166		3,684		23,165
Commercial and industrial	3,867		(214)		55		310		4,018
Construction	4,595		—		—		2,180		6,775
Agriculture production	593		—		—		326		919
Leases	11		—		—		1		12
Allowance for credit losses on loans	$	57,911	$	(491)	$	230	$	22,089	$	79,739
Reserve for unfunded commitments	2,845		—		—		154		2,999
Total	$	60,756	$	(491)	$	230	$	22,243	$	82,738

	Allowance for credit losses – Six months ended June 30, 2020
(in thousands)	Beginning Balance		Adoption of CECL		Charge-offs		Recoveries		Provision		Ending Balance
Commercial real estate:
CRE non-owner occupied	$	5,948	$	6,701	$	—	$	193	$	13,249	$	26,091
CRE owner occupied	2,027		2,281		—		9		4,393		8,710
Multifamily	3,352		2,281		—		—		2,948		8,581
Farmland	668		585		—		—		215		1,468
Total commercial real estate loans	11,995		11,848		—		202		20,805		44,850
Consumer:
SFR 1-4 1st DT liens	2,306		2,675		(11)		412		2,633		8,015
SFR HELOCs and junior liens	6,183		4,638		(23)		140		1,170		12,108
Other	1,595		971		(373)		167		682		3,042
Total consumer loans	10,084		8,284		(407)		719		4,485		23,165
Commercial and industrial	4,867		(1,961)		(594)		181		1,525		4,018
Construction	3,388		933		—		—		2,454		6,775
Agriculture production	261		(179)		—		20		817		919
Leases	21		(12)		—		—		3		12
Allowance for credit losses on loans	30,616		18,913		(1,001)		1,122		30,089		79,739
Reserve for unfunded commitments	2,775		—		—		—		224		2,999
Total	$	33,391	$	18,913	$	(1,001)	$	1,122	$	30,313	$	82,738

As part of the on-going monitoring of the credit quality of the Company’s loan portfolio, management tracks certain credit quality indicators including, but not limited to, trends relating to (i) the level of criticized and classified loans, (ii) net charge-offs, (iii) non-performing loans, and (iv) delinquency within the portfolio. The Company analyzes loans individually to classify the loans as to credit risk and grading. This analysis is performed annually for all outstanding balances greater than $1,000,000 and non-homogeneous loans, such as commercial real estate loans, unless other indicators, such as delinquency, trigger more frequent evaluation. Loans below the $1,000,000 threshold and homogenous in nature are evaluated as needed for proper grading based on delinquency and borrower credit scores.

The Company utilizes a risk grading system to assign a risk grade to each of its loans. Loans are graded on a scale ranging from Pass to Loss. A description of the general characteristics of the risk grades is as follows:

•Pass– This grade represents loans ranging from acceptable to very little or no credit risk. These loans typically meet most if not all policy standards in regard to: loan amount as a percentage of collateral value, debt service coverage, profitability, leverage, and working capital.

•Special Mention– This grade represents “Other Assets Especially Mentioned” in accordance with regulatory guidelines and includes loans that display some potential weaknesses which, if left unaddressed, may result in deterioration of the repayment prospects for the asset or may inadequately protect the Company’s position in the future. These loans warrant more than normal supervision and attention.

•Substandard– This grade represents “Substandard” loans in accordance with regulatory guidelines. Loans within this rating typically exhibit weaknesses that are well defined to the point that repayment is jeopardized. Loss potential is, however, not necessarily evident. The underlying collateral supporting the credit appears to have sufficient value to protect the Company from loss of principal and accrued interest, or the loan has been written down to the point where this is true. There is a definite need for a well-defined workout/rehabilitation program.

•Doubtful– This grade represents “Doubtful” loans in accordance with regulatory guidelines. An asset classified as Doubtful has all the weaknesses inherent in a loan classified Substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Pending factors include proposed merger, acquisition, or liquidation procedures, capital injection, perfecting liens on additional collateral, and financing plans.

•Loss– This grade represents “Loss” loans in accordance with regulatory guidelines. A loan classified as Loss is considered uncollectible and of such little value that its continuance as a bankable asset is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off the loan, even though some recovery may be affected in the future. The portion of the loan that is graded loss should be charged off no later than the end of the quarter in which the loss is identified.

Based on the most recent analysis performed, the risk category of loans by class of loans is as follows for the period indicated:

	Term Loans Amortized Cost Basis by Origination Year – As of June 30, 2021
(in thousands)	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
Commercial real estate:
CRE non-owner occupied risk ratings
Pass	$	89,643	$	120,974	$	206,093	$	137,384	$	246,584	$	596,837	$	72,393	$	—	$	1,469,908
Special Mention	—		—		6,191		11,613		3,667		17,202		10,760		—		49,433
Substandard	—		—		—		1,416		568		12,931		—		—		14,915
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total CRE non-owner occupied risk ratings	$	89,643	$	120,974	$	212,284	$	150,413	$	250,819	$	626,970	$	83,153	$	—	$	1,534,256

Commercial real estate:
CRE owner occupied risk ratings
Pass	$	89,094	$	99,949	$	68,668	$	55,048	$	55,684	$	248,033	$	19,755	$	—	$	636,231
Special Mention	—		—		—		288		6,797		8,447		—		—		15,532
Substandard	—		—		1,483		1,262		465		4,975		—		—		8,185
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total CRE owner occupied risk ratings	$	89,094	$	99,949	$	70,151	$	56,598	$	62,946	$	261,455	$	19,755	$	—	$	659,948

Commercial real estate:
Multifamily risk ratings
Pass	$	176,116	$	86,806	$	113,996	$	121,226	$	91,054	$	168,088	$	24,533	$	—	$	781,819
Special Mention	—		9,385		—		—		—		24,669		7,723		—		41,777
Substandard	—		—		4,334		—		—		171		—		—		4,505
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total multifamily loans	$	176,116	$	96,191	$	118,330	$	121,226	$	91,054	$	192,928	$	32,256	$	—	$	828,101

Commercial real estate:
Farmland risk ratings
Pass	$	26,440	$	18,526	$	21,676	$	18,051	$	8,397	$	21,476	$	44,775	$	—	$	159,341
Special Mention	—		—		—		—		1,197		3,316		1,775		—		6,288
Substandard	—		—		3,267		—		590		1,111		1,434		—		6,402
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total farmland loans	$	26,440	$	18,526	$	24,943	$	18,051	$	10,184	$	25,903	$	47,984	$	—	$	172,031

Consumer loans:
SFR 1-4 1st DT liens risk ratings
Pass	$	173,937	$	182,911	$	59,675	$	39,522	$	41,506	$	139,178	$	—	$	4,812	$	641,541
Special Mention	—		—		288		1,154		420		2,779		—		977		5,618
Substandard	—		—		—		1,131		273		5,440		—		370		7,214
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total SFR 1st DT liens	$	173,937	$	182,911	$	59,963	$	41,807	$	42,199	$	147,397	$	—	$	6,159	$	654,373

	Term Loans Amortized Cost Basis by Origination Year – As of June 30, 2021
(in thousands)	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
Consumer loans:
SFR HELOCs and Junior Liens
Pass	$	624	$	—	$	—	$	—	$	—	$	242	$	300,548	$	11,338	$	312,752
Special Mention	—		—		—		—		—		92		4,386		884		5,362
Substandard	—		—		—		—		—		17		5,460		1,536		7,013
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total SFR HELOCs and Junior Liens	$	624	$	—	$	—	$	—	$	—	$	351	$	310,394	$	13,758	$	325,127

Consumer loans:
Other risk ratings
Pass	$	12,077	$	19,995	$	22,680	$	10,425	$	2,749	$	1,367	$	576	$	—	$	69,869
Special Mention	—		52		211		243		98		67		72		—		743
Substandard	—		67		88		126		73		132		11		—		497
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total other consumer loans	$	12,077	$	20,114	$	22,979	$	10,794	$	2,920	$	1,566	$	659	$	—	$	71,109

Commercial and industrial loans:
Commercial and industrial risk ratings
Pass	$	202,893	$	73,077	$	40,966	$	14,631	$	9,585	$	9,484	$	94,260	$	840	$	445,736
Special Mention	—		29		119		550		116		161		429		—		1,404
Substandard	—		—		166		102		1,011		684		2,887		79		4,929
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total commercial and industrial loans	$	202,893	$	73,106	$	41,251	$	15,283	$	10,712	$	10,329	$	97,576	$	919	$	452,069

Construction loans:
Construction risk ratings
Pass	$	17,725	$	88,892	$	51,436	$	10,722	$	2,092	$	23,539	$	1	$	—	$	194,407
Special Mention	—		—		—		—		346		1,460		—		—		1,806
Substandard	—		—		—		—		—		4,501		—		—		4,501
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total construction loans	$	17,725	$	88,892	$	51,436	$	10,722	$	2,438	$	29,500	$	1	$	—	$	200,714

Agriculture production loans:
Agriculture production risk ratings
Pass	$	1,241	$	1,012	$	1,767	$	1,189	$	1,229	$	1,006	$	32,132	$	—	$	39,576
Special Mention	—		—		—		181		—		74		2,016		—		2,271
Substandard	—		—		—		—		—		—		120		—		120
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total agriculture production loans	$	1,241	$	1,012	$	1,767	$	1,370	$	1,229	$	1,080	$	34,268	$	—	$	41,967

	Term Loans Amortized Cost Basis by Origination Year – As of June 30, 2021
(in thousands)	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
Leases:
Lease risk ratings
Pass	$	5,199	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$5,199
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total leases	$	5,199	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	5,199

Total loans outstanding:
Risk ratings
Pass	$	794,989	$	692,142	$	586,957	$	408,198	$	458,880	$	1,209,250	$	588,973	$	16,990	$	4,756,379
Special Mention	—		9,466		6,809		14,029		12,641		58,267		27,161		1,861		130,234
Substandard	—		67		9,338		4,037		2,980		29,962		9,912		1,985		58,281
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total loans outstanding	$	794,989	$	701,675	$	603,104	$	426,264	$	474,501	$	1,297,479	$	626,046	$	20,836	$	4,944,894

	Term Loans Amortized Cost Basis by Origination Year – As of December 31, 2020
(in thousands)	2020		2019		2018		2017		2016		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
Commercial real estate:
CRE non-owner occupied risk ratings
Pass	$	120,520	$	207,899	$	155,730	$	256,677	$	179,523	$	460,644	$	76,730	$	—	$	1,457,723
Special Mention	—		7,455		11,692		5,407		15,773		18,832		12,205		—		71,364
Substandard	—		—		1,449		584		2,147		2,288		—		—		6,468
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total CRE non-owner occupied risk ratings	$	120,520	$	215,354	$	168,871	$	262,668	$	197,443	$	481,764	$	88,935	$	—	$	1,535,555

Commercial real estate:
CRE owner occupied risk ratings
Pass	$	105,896	$	75,144	$	53,816	$	58,371	$	54,541	$	227,828	$	25,508	$	—	$	601,104
Special Mention	—		—		288		7,451		2,955		6,140		—		—		16,834
Substandard	—		1,533		1,301		475		1,306		1,822		—		—		6,437
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total CRE owner occupied risk ratings	$	105,896	$	76,677	$	55,405	$	66,297	$	58,802	$	235,790	$	25,508	$	—	$	624,375

Commercial real estate:
Multifamily risk ratings
Pass	$	77,646	$	118,725	$	113,882	$	70,112	$	67,457		$	123,518	$	19,007	$	—	$	590,347
Special Mention	9,441		—		—		603		24,687			772		9,259		—		44,762
Substandard	—		4,371		—		—		—		—	—		—		—		4,371
Doubtful/Loss	—		—		—		—		—			—		—		—		—
Total multifamily loans	$	87,087	$	123,096	$	113,882	$	70,715	$	92,144		$	124,290	$	28,266	$	—	$	639,480

	Term Loans Amortized Cost Basis by Origination Year – As of December 31, 2020
(in thousands)	2020		2019		2018		2017		2016		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
Commercial real estate:
Farmland risk ratings
Pass	$	17,640	$	25,003	$	19,148	$	12,834	$	7,377	$	17,129	$	39,411	$	—	$	138,542
Special Mention	—		2,567		—		1,271		227		3,107		2,258		—		9,430
Substandard	—		700		—		602		—		1,214		2,004		—		4,520
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total farmland loans	$	17,640	$	28,270	$	19,148	$	14,707	$	7,604	$	21,450	$	43,673	$	—	$	152,492

Consumer loans:
SFR 1-4 1st DT liens risk ratings
Pass	$	183,719	$	80,717	$	36,342	$	53,001	$	46,467	$	126,465	$	76	$	5,507	$	532,294
Special Mention	—		290		684		110		15		2,936		—		934		4,969
Substandard	—		—		1,174		929		935		5,763		—		528		9,329
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total SFR 1st DT liens	$	183,719	$	81,007	$	38,200	$	54,040	$	47,417	$	135,164	$	76	$	6,969	$	546,592

Consumer loans:
SFR HELOCs and Junior Liens
Pass	$	793	$	—	$	13	$	360	$	300	$	910	$	297,160	$	14,051	$	313,587
Special Mention	—		—		16		—		—		83		4,504		789		5,392
Substandard	—		—		—		—		—		39		6,698		1,768		8,505
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total SFR HELOCs and Junior Liens	$	793	$	—	$	29	$	360	$	300	$	1,032	$	308,362	$	16,608	$	327,484

Consumer loans:
Other risk ratings
Pass	$	25,876	$	29,539	$	14,170	$	4,238	$	1,020	$	967	$	986	$	—	$	76,796
Special Mention	43		208		147		74		24		65		90		—		651
Substandard	58		82		210		74		12		140		9		—		585
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total other consumer loans	$	25,977	$	29,829	$	14,527	$	4,386	$	1,056	$	1,172	$	1,085	$	—	$	78,032

Commercial and industrial loans:
Commercial and industrial risk ratings
Pass	$	356,701	$	48,838	$	20,463	$	13,151	$	5,185	$	9,490	$	65,938	$	1,085	$	520,851
Special Mention	—		102		698		195		20		178		207		11		1,411
Substandard	—		301		53		1,142		823		148		1,519		79		4,065
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total commercial and industrial loans	$	356,701	$	49,241	$	21,214	$	14,488	$	6,028	$	9,816	$	67,664	$	1,175	$	526,327

	Term Loans Amortized Cost Basis by Origination Year – As of December 31, 2020
(in thousands)	2020		2019		2018		2017		2016		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
Construction loans:
Construction risk ratings
Pass	69,133		41,786		92,191		51,082		20,868		2,876		—		$	—	$	277,936
Special Mention	—		—		—		346		—		1,780		—		—		2,126
Substandard	—		—		—		—		4,529		251		—		—		4,780
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total construction loans	$	69,133	$	41,786	$	92,191	$	51,428	$	25,397	$	4,907	$	—	$	—	$	284,842

Agriculture production loans:
Agriculture production risk ratings
Pass	$	977	$	2,079	$	1,590	$	1,838	$	663	$	708	$	36,051	$	—	$	43,906
Special Mention	—		—		203		—		49		—		—		—		252
Substandard	—		—		—		—		6		—		—		—		6
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total agriculture production loans	$	977	$	2,079	$	1,793	$	1,838	$	718	$	708	$	36,051	$	—	$	44,164

Leases:
Lease risk ratings
Pass	$	3,784	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	3,784
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total leases	$	3,784	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	3,784

Total loans outstanding:
Risk ratings
Pass	$	962,685	$	629,730	$	507,345	$	521,664	$	383,401	$	970,535	$	560,867	$	20,643	$	4,556,870
Special Mention	9,484		10,622		13,728		15,457		43,750		33,893		28,523		1,734		157,191
Substandard	58		6,987		4,187		3,806		9,758		11,665		10,230		2,375		49,066
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total loans outstanding	$	972,227	$	647,339	$	525,260	$	540,927	$	436,909	$	1,016,093	$	599,620	$	24,752	$	4,763,127

The following table shows the ending balance of current and past due originated loans by loan category as of the date indicated:

	Analysis of Past Due Loans - As of June 30, 2021
(in thousands)	30-59 days		60-89 days		> 90 days		Total Past Due Loans		Current		Total
Commercial real estate:
CRE non-owner occupied	$	337	$	49	$	3,919	$	4,305	$	1,529,951	$	1,534,256
CRE owner occupied	28		62		412		502		659,446		659,948
Multifamily	—		—		—		—		828,101		828,101
Farmland	—		—		846		846		171,185		172,031
Total commercial real estate loans	365		111		5,177		5,653		3,188,683		3,194,336
Consumer:
SFR 1-4 1st DT liens	—		—		423		423		653,950		654,373
SFR HELOCs and junior liens	694		63		1,565		2,322		322,805		325,127
Other	13		—		52		65		71,044		71,109
Total consumer loans	707		63		2,040		2,810		1,047,799		1,050,609
Commercial and industrial	250		178		160		588		451,481		452,069
Construction	—		—		—		—		200,714		200,714
Agriculture production	241		—		—		241		41,726		41,967
Leases	—		—		—		—		5,199		5,199
Total	$	1,563	$	352	$	7,377	$	9,292	$	4,935,602	$	4,944,894

	Analysis of Past Due Loans - As of December 31, 2020
(in thousands)	30-59 days		60-89 days		> 90 days		Total Past Due Loans		Current		Total
Commercial real estate:
CRE non-owner occupied	$	127	$	173	$	239	$	539	$	1,535,016	$	1,535,555
CRE owner occupied	297				824		1,121		623,254		624,375
Multifamily	—		—		—		—		639,480		639,480
Farmland	899		—		70		969		151,523		152,492
Total commercial real estate loans	1,323		173		1,133		2,629		2,949,273		2,951,902
Consumer:
SFR 1-4 1st DT liens	37		—		960		997		545,595		546,592
SFR HELOCs and junior liens	418		212		1,671		2,301		325,183		327,484
Other	41		13		100		154		77,878		78,032
Total consumer loans	496		225		2,731		3,452		948,656		952,108
Commercial and industrial	155		426		105		686		525,641		526,327
Construction	—		—		—		—		284,842		284,842
Agriculture production	—		—		—		—		44,164		44,164
Leases	—		—		—		—		3,784		3,784
Total	$	1,974	$	824	$	3,969	$	6,767	$	4,756,360	$	4,763,127

The following table shows the ending balance of non accrual loans by loan category as of the date indicated:

	Non Accrual Loans
	As of June 30, 2021						As of December 31, 2020
(in thousands)	Non accrual with no allowance for credit losses		Total non accrual		Past due 90 days or more and still accruing		Non accrual with no allowance for credit losses		Total non accrual		Past due 90 days or more and still accruing
Commercial real estate:
CRE non-owner occupied	$	8,515	$	8,515	$	—	$	3,110	$	3,110	$	—
CRE owner occupied	3,132		5,610		—		3,111		4,061		—
Multifamily	171		171		—		—		—		—
Farmland	1,346		1,346		—		1,468		1,538		—
Total commercial real estate loans	13,164		15,642		—		7,689		8,709		—
Consumer:
SFR 1-4 1st DT liens	4,185		4,328		—		4,950		5,093		—
SFR HELOCs and junior liens	3,677		4,604		—		4,480		6,148		—
Other	47		114		—		68		167		—
Total consumer loans	7,909		9,046		—		9,498		11,408		—
Commercial and industrial	86		3,615		—		652		2,183		—
Construction	4,402		4,402		—		4,546		4,546		—
Agriculture production	—		—		—		5		18		—
Leases	—		—		—		—		—		—
Sub-total	25,561		32,705		—		22,390		26,864		—
Less: Guaranteed loans	(608)		(865)		—		(687)		(811)
Total, net	$	24,953	$	31,840	$	—	$	21,703	$	26,053	$	—

Interest income on non accrual loans that would have been recognized during the three months ended June 30, 2021 and 2020, if all such loans had been current in accordance with their original terms, totaled $524,000 and $428,000, respectively. Interest income actually recognized on these originated loans during the three months ended June 30, 2021 and 2020 was $159,000 and $39,000, respectively.

Interest income on non accrual loans that would have been recognized during the six months ended June 30, 2021 and 2020, if all such loans had been current in accordance with their original terms, totaled $1,060,000 and $859,000, respectively. Interest income actually recognized on these originated loans during the six months ended June 30, 2021 and 2020 was $176,000 and $86,000, respectively.

The following tables present the amortized cost basis of collateral dependent loans by class of loans as of the following periods:

	As of June 30, 2021
(in thousands)	Retail		Office		Warehouse		Other		Multifamily		Farmland		SFR -1st Deed		SFR -2nd Deed		Automobile/Truck		A/R and Inventory		Equipment		Total
Commercial real estate:
CRE non-owner occupied	$	2,853	$	416	$	—	$	3,918	$	—	$	—	$	1,328	$	—	$	—	$	—	$	—	$	8,515
CRE owner occupied	543		—		1,611		978		—		—		—		—		—		—		—		3,132
Multifamily	—		—		—		—		171		—		—		—		—		—		—		171
Farmland	—		—		—		—		—		1,346		—		—		—		—		—		1,346
Total commercial real estate loans	3,396		416		1,611		4,896		171		1,346		1,328		—		—		—		—		13,164
Consumer:
SFR 1-4 1st DT liens	—		—		—		—		—		—		4,185		—		—		—		—		4,185
SFR HELOCs and junior liens	—		—		—		—		—		—		1,753		1,924		—		—		—		3,677
Other	—		—		—		26		—		—		—		—		21		—		—		47
Total consumer loans	—		—		—		26		—		—		5,938		1,924		21		—		—		7,909
Commercial and industrial	—		—		—		—		—		—		—		—		—		43		43		86
Construction	—		—		—		—		—		—		4,402		—		—		—		—		4,402
Agriculture production	—		—		—		—		—		—		—		—		—		—		—		—
Leases	—		—		—		—		—		—		—		—		—		—		—		—
Total	$	3,396	$	416	$	1,611	$	4,922	$	171	$	1,346	$	11,668	$	1,924	$	21	$	43	$	43	$	25,561

	As of December 31, 2020
(in thousands)	Retail		Office		Warehouse		Other		Multifamily			Farmland		SFR -1st Deed		SFR -2nd Deed		Automobile/Truck		A/R and Inventory		Equipment		Total
Commercial real estate:
CRE non-owner occupied	$	2,445	$	435	$	—	$	—	$	—		$	—	$	—	$	—	$	—	$	—	$	—	$	2,880
CRE owner occupied	796		1,176		1,668		—		—			—		—		—		—		—		—		3,640
Multifamily	—		—		—		—		—			—		—		—		—		—		—		—
Farmland	—		—		—		—		—		—	1,538		—		—		—		—		—		1,538
Total commercial real estate loans	3,241		1,611		1,668		—		—			1,538		—		—		—		—		—		8,058
Consumer:
SFR 1-4 1st DT liens	—		—		—		—		—			—		5,068		—		—		—		—		5,068
SFR HELOCs and junior liens	—		—		—		—		—			—		1,855		2,839		—		—		—		4,694
Other	—		—		—		42		—			—		—		—		97		—		—		139
Total consumer loans	—		—		—		42		—			—		6,923		2,839		97		—		—		9,901
Commercial and industrial	—		—		—		292		—			—		—		—		—		1,173		75		1,540
Construction	—		—		—		—		—			—		4,546		—		—		—		—		4,546
Agriculture production	—		—		—		—		—			—		—		—		—		13		5		18
Leases	—		—		—		—		—			—		—		—		—		—		—		—
Total	$	3,241	$	1,611	$	1,668	$	334	$	—		$	1,538	$	11,469	$	2,839	$	97	$	1,186	$	80	$	24,063

The CARES Act, in addition to providing financial assistance to both businesses and consumers, provides financial institutions the option to temporarily suspend certain requirements under GAAP related to troubled debt restructurings for a limited period of time to account for the effects of COVID-19. The banking regulatory agencies have likewise issued guidance encouraging financial institutions to work prudently with borrowers who are, or may be, unable to meet their contractual payment obligations because of the effects of COVID-19. That guidance, with concurrence of the Financial Accounting Standards Board and provisions of the CARES Act, allow modifications made on a good faith basis in response to COVID-19 to borrowers who were generally current with their payments prior to any relief, to not be treated as troubled debt restructurings. To the extent that such modifications meet the criteria previously described, such modifications are not expected to be classified as troubled debt restructurings.The following tables show certain information regarding TDRs that occurred during the periods indicated:

	TDR information for the three months ended June 30, 2021
(dollars in thousands)	Number	Pre-mod outstanding principal balance		Post-mod outstanding principal balance		Financial impact due to TDR taken as additional provision		Number that defaulted during the period	Recorded investment of TDRs that defaulted during the period		Financial impact due to the default of previous TDR taken as charge- offs or additional provisions
Commercial real estate:
CRE non-owner occupied	1	$	706	$	706	$	706	—	$	—	$	—
CRE owner occupied	—	—		—		—		—	—		—
Multifamily	—	—		—		—		—	—		—
Farmland	—	—		—		—		—	—		—
Total commercial real estate loans	1	706		706		706		—	—		—
Consumer:
SFR 1-4 1st DT liens	—	—		—		—		—	—		—
SFR HELOCs and junior liens	—	—		—		—		—	—		—
Other	—	—		—		—		—	—		—
Total consumer loans	—	—		—		—		—	—		—
Commercial and industrial	2	2,000		2,000		293		—	—		—
Construction	—	—		—		—		—	—		—
Agriculture production	—	—		—		—		—	—		—
Leases	—	—		—		—		—	—		—
Total	3	$	2,706	$	2,706	$	999	—	$	—	$	—

	TDR information for the three months ended June 30, 2020
(dollars in thousands)	Number	Pre-mod outstanding principal balance		Post-mod outstanding principal balance		Financial impact due to TDR taken as additional provision		Number that defaulted during the period	Recorded investment of TDRs that defaulted during the period		Financial impact due to the default of previous TDR taken as charge- offs or additional provisions
Commercial real estate:
CRE non-owner occupied	—	$	—	$	—	$	—	—	$	—	$	—
CRE owner occupied	—	—		—		—		—	—		—
Multifamily	—	—		—		—		—	—		—
Farmland	—	—		—		—		—	—		—
Total commercial real estate loans	—	—		—		—		—	—		—
Consumer:
SFR 1-4 1st DT liens	—	—		—		—		1	735		—
SFR HELOCs and junior liens	—	—		—		—		—	—		—
Other	—	—		—		—		—	—		—
Total consumer loans	—	—		—		—		1	735		—
Commercial and industrial	—	—		—		—		—	—		—
Construction	—	—		—		—		—	—		—
Agriculture production	—	—		—		—		—	—		—
Leases	—	—		—		—		—	—		—
Total	—	$	—	$	—	$	—	1	$	735	$	—

	TDR Information for the six months ended June 30, 2021
(dollars in thousands)	Number	Pre-mod outstanding principal balance		Post-mod outstanding principal balance		Financial impact due to TDR taken as additional provision		Number that defaulted during the period	Recorded investment of TDRs that defaulted during the period		Financial impact due to the default of previous TDR taken as charge- offs or additional provisions
Commercial real estate:
CRE non-owner occupied	2	$	1,023	$	1,018	$	1,020	—	$	—	$	—
CRE owner occupied	1	740		742		742		—	—		—
Multifamily	—	—		—		—		—	—		—
Farmland	—	—		—		—		3	847		—
Total commercial real estate loans	3	1,763		1,760		1,762		3	847		—
Consumer:
SFR 1-4 1st DT liens	—	—		—		—		—	—		—
SFR HELOCs and junior liens	—	—		—		—		—	—		—
Other	—	—		—		—		—	—		—
Total consumer loans	—	—		—		—		—	—		—
Commercial and industrial	5	2,316		2,310		603		1	247		—
Construction	—	—		—		—		—	—		—
Agriculture production	—	—		—		—		—	—		—
Leases	—	—		—		—		—	—		—
Total	8	$	4,079	$	4,070	$	2,365	4	$	1,094	$	—

	TDR Information for the six months ended June 30, 2020
(dollars in thousands)	Number	Pre-mod outstanding principal balance		Post-mod outstanding principal balance		Financial impact due to TDR taken as additional provision		Number that defaulted during the period	Recorded investment of TDRs that defaulted during the period		Financial impact due to the default of previous TDR taken as charge- offs or additional provisions
Commercial real estate:
CRE non-owner occupied	1	$	257	$	251	$	—	—	$	—	$	—
CRE owner occupied	—	—		—		—		—	—		—
Multifamily	—	—		—		—		—	—		—
Farmland	2	230		298		—		—	—		—
Total commercial real estate loans	3	487		549		—		—	—		—
Consumer:
SFR 1-4 1st DT liens	—	—		—		—		2	1,037		—
SFR HELOCs and junior liens	2	172		169		—		—	—		—
Other	—	—		—		—		—	—		—
Total consumer loans	2	172		169		—		2	1,037		—
Commercial and industrial	1	21		20		21		—	—		—
Construction	—	—		—		—		—	—		—
Agriculture production	—	—		—		—		—	—		—
Leases	—	—		—		—		—	—		—
Total	6	$	680	$	738	$	21	2	$	1,037	$	—

The Company also modified the terms of select loans in an effort to assist borrowers that were not related to the COVID-19 pandemic. If the borrower was experiencing financial difficulty and a concession was granted, the Company considered such modifications as troubled debt restructurings. Modifications classified as TDRs can include one or a combination of the following: rate modifications, term extensions, interest only modifications, either temporary or long-term, payment modifications, and collateral substitutions/additions. The objective of the modifications was to increase loan repayments by customers and thereby reduce net charge-offs. The modified loans are included in impaired loans for purposes of determining the level of the allowance for credit losses.

For all new TDRs, an impairment analysis is conducted. If the loan is determined to be collateral dependent, any additional amount of impairment will be calculated based on the difference between estimated collectible value and the current carrying balance of the loan. This difference could result in an increased provision and is typically charged off. If the asset is determined not to be collateral dependent, the impairment is measured on the net present value difference between the expected cash flows of the restructured loan and the cash flows which would have been received under the original terms. The effect of this could result in a requirement for additional provision to the

reserve. The effect of these required provisions for the period are indicated above.Typically if a TDR defaults during the period, the loan is then considered collateral dependent and, if it was not already considered collateral dependent, an appropriate provision will be reserved or charge will be taken. The additional provisions required resulting from default of previously modified TDR’s are noted above. Loans that defaulted within the twelve month period subsequent to modification were not considered significant for financial reporting purposes.

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Leases

6 Months Ended

Jun. 30, 2021

Leases [Abstract]

Leases

Leases

The Company records a right-of-use asset (“ROUA”) on the consolidated balance sheets for those leases that convey rights to control use of identified assets for a period of time in exchange for consideration. The Company also records a lease liability on the consolidated balance sheets for the present value of future payment commitments. All of the Company’s leases are comprised of operating leases in which the Company is lessee of real estate property for branches, ATM locations, and general administration and operations. The Company has elected not to include short-term leases (i.e. leases with initial terms of 12 month or less) within the ROUA and lease liability. Known or determinable adjustments to the required minimum future lease payments were included in the calculation of the Company’s ROUA and lease liability. Adjustments to the required minimum future lease payments that are variable and will not be determinable until a future period, such as changes in the consumer price index, are included as variable lease costs. Additionally, expected variable payments for common area maintenance, taxes and insurance were unknown and not determinable at lease commencement and therefore, were not included in the determination of the Company’s ROUA or lease liability.

The value of the ROUA and lease liability is impacted by the amount of the periodic payment required, length of the lease term, and the discount rate used to calculate the present value of the minimum lease payments. The Company’s lease agreements often include one or more options to renew at the Company’s discretion. If at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROU asset and lease liability. Topic 842 requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term. The lease liability is reduced based on the discounted present value of remaining payments as of each reporting period. The ROUA value is measured using the amount of lease liability and adjusted for prepaid or accrued lease payments, remaining lease incentives, unamortized direct costs (if any), and impairment (if any).

The following table presents the components of lease expense for the periods ended:

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2021		2020		2021		2020
Operating lease cost	$	1,267	$	1,291	$	2,526	$	2,586
Short-term lease cost	61		65		122		128
Variable lease cost	(1)		1		(3)		6
Sublease income	(11)		(35)		(24)		(69)
Total lease cost	$	1,316	$	1,322	$	2,621	$	2,651

The following table presents supplemental cash flow information related to leases for the periods ended:

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2021		2020		2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	1,226	$	1,243	$	2,430	$	2,480
ROUA obtained in exchange for operating lease liabilities	$	—	$	675	$	1,308	$	4,068

The following table presents the weighted average operating lease term and discount rate as of the period ended:

	June 30,
	2021		2020
Weighted-average remaining lease term (years)	9.8		10.3
Weighted-average discount rate	3.03	%	3.17	%

At June 30, 2021, future expected operating lease payments are as follows:

(in thousands)
Periods ending December 31,
2021	$	2,252
2022	4,295
2023	3,624
2024	3,352
2025	2,891
Thereafter	14,925
	31,339
Discount for present value of expected cash flows	(4,632)
Lease liability at June 30, 2021	$	26,707

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Deposits

6 Months Ended

Jun. 30, 2021

Deposits [Abstract]

Deposits

Deposits

A summary of the balances of deposits follows:

(in thousands)	June 30, 2021		December 31, 2020
Noninterest-bearing demand	$	2,843,783	$	2,581,517
Interest-bearing demand	1,486,321		1,414,908
Savings	2,337,557		2,164,942
Time certificates, $250,000 or more	59,589		73,147
Other time certificates	264,803		271,420
Total deposits	$	6,992,053	$	6,505,934

Certificate of deposit balances of $10,000,000 from the State of California were included in time certificates, over $250,000, at June 30, 2021 and December 31, 2020, respectively. The Company participates in a deposit program offered by the State of California whereby the State may make deposits at the Company’s request subject to collateral and credit worthiness constraints. The negotiated rates on these State deposits are generally more favorable than other wholesale funding sources available to the Company. Overdrawn deposit balances of $916,000 and $985,000 were classified as consumer loans at June 30, 2021 and December 31, 2020, respectively.

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and ContingenciesThe following table presents a summary of the Bank’s commitments and contingent liabilities:

(in thousands)	June 30, 2021		December 31, 2020
Financial instruments whose amounts represent risk:
Commitments to extend credit:
Commercial loans	$	426,278	$	462,422
Consumer loans	566,332		534,223
Real estate mortgage loans	274,339		202,306
Real estate construction loans	207,741		227,876
Standby letters of credit	14,112		15,056
Deposit account overdraft privilege	112,993		110,813

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Shareholders' Equity

6 Months Ended

Jun. 30, 2021

Equity [Abstract]

Shareholders' Equity

Shareholders’ Equity

Dividends Paid

The Bank paid to the Company cash dividends in the aggregate amounts of $8,367,000 and $12,694,000 during the three months ended June 30, 2021 and 2020, respectively, and $16,139,000 and $39,448,000 during the six months ended June 30, 2021 and 2020,

respectively. The Bank is regulated by the Federal Deposit Insurance Corporation (FDIC) and the State Department of Financial Protection and Innovation (DFPI). Absent approval from the Commissioner of the DFPI, California banking laws generally limit the Bank’s ability to pay dividends to the lesser of (1) retained earnings or (2) net income for the last three fiscal years, less cash distributions paid during such period.

Stock Repurchase Plan

On February 25, 2021 the Board of Directors approved the authorization to repurchase up to 2,000,000 shares of the Company's common stock (the 2021 Repurchase Plan), which approximated 6.7% of the shares outstanding as of the approval date. The actual timing of any share repurchases will be determined by the Company's management and therefore the total value of the shares to be purchased under the program is subject to change. The 2021 Repurchase Plan has no expiration date (in accordance with applicable laws and regulations) and during the three and six month periods June 30, 2021, the Company repurchased 45,354 shares with a market value of $2,101,000, respectively.

In connection with approval of the 2021 Repurchase Plan, the Company’s previous repurchase program adopted on November 12, 2019 (the 2019 Repurchase Plan) was terminated. Under the 2019 Repurchase Plan, during the three months ended March 31, 2021, the Company repurchased 223 shares with a market value of approximately $8,000. The Company repurchased 858,717 shares during 2020.

Stock Repurchased Under Equity Compensation Plans

The Company's shareholder-approved equity compensation plans permit employees to tender recently vested shares in lieu of cash for the payment of exercise price, if applicable, and the tax withholding on such shares. During the three months ended June 30, 2021 and 2020, employees tendered zero shares, respectively, of the Company’s common stock in connection with option exercises. During the six months ended June 30, 2021 and 2020, employees tendered zero and 4,668 shares, respectively, of the Company’s common stock in connection with option exercises. Employees also tendered 9,660 and 11,306 shares in connection with the tax withholding requirements of other share based awards during the three months ended June 30, 2021 and 2020, respectively, and 9,730 and 11,439 during the six months ended June 30, 2021 and 2020, respectively. In total, shares of the Company's common stock tendered had market values of $450,000 and $346,000 during the quarters ended June 30, 2021 and 2020, respectively, and $452,000 and $494,000 during the year to date periods June 30, 2021 and 2020, respectively. The tendered shares were retired. The market value of tendered shares is the last market trade price at closing on the day an option is exercised or the other share based award vests. Stock repurchased under equity incentive plans are not included in the total of stock repurchased under the 2021 or 2019 Stock Repurchase Plans.

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Stock Options and Other Equity-Based Incentive Instruments

6 Months Ended

Jun. 30, 2021

Share-based Payment Arrangement [Abstract]

Stock Options and Other Equity-Based Incentive Instruments

Stock Options and Other Equity-Based Incentive Instruments

On April 16, 2019, the Board of Directors adopted the 2019 Equity Incentive Plan (2019 Plan) which was approved by shareholders on May 21, 2019. The 2019 Plan allows for up to 1,500,000 shares to be issued in connection with equity-based incentives. The Company’s 2009 Equity Incentive Plan (2009 Plan) expired on March 26, 2019. While no new awards can be granted under the 2009 Plan, existing grants continue to be governed by the terms, conditions and procedures set forth in any applicable award agreement.

Stock option activity during the six months ended June 30, 2021 is summarized in the following table:

	Number of Shares	Weighted Average Exercise Price
Outstanding at December 31, 2020	128,500	$	17.72
Options granted	—	—
Options exercised	(1,675)	16.59
Options forfeited	—	—
Outstanding at June 30, 2021	126,825	$	17.74

The following table shows the number, weighted-average exercise price, intrinsic value, and weighted average remaining contractual life of options exercisable, options not yet exercisable and total options outstanding as of June 30, 2021:

	Currently Exercisable		Currently Not Exercisable		Total Outstanding
Number of options	126,825		—		126,825
Weighted average exercise price	$	17.74	$	—	$	17.74
Intrinsic value (in thousands)	$	3,763	$	—	$	3,763
Weighted average remaining contractual term (yrs.)	1.5		0.0		1.5

As of June 30, 2021 all options outstanding are fully vested and are expected to be exercised prior to expiration. The Company did not modify any option grants during 2020 or the six months ended June 30, 2021.

Activity related to restricted stock unit awards during the six months ended June 30, 2021 is summarized in the following table:

	Service Condition Vesting RSUs	Market Plus Service Condition Vesting RSUs
Outstanding at December 31, 2020	99,809	81,615
RSUs granted	47,029	31,479
RSUs added through dividend and performance credits	1,090	—
RSUs released	(42,712)	—
RSUs forfeited/expired	(114)	(75)
Outstanding at June 30, 2021	105,102	113,019

The 105,102 of service condition vesting RSUs outstanding as of June 30, 2021 include a feature whereby each RSU outstanding is credited with a dividend amount equal to any common stock cash dividend declared and paid, and the credited amount is divided by the closing price of the Company’s stock on the dividend payable date to arrive at an additional amount of RSUs outstanding under the original grant. The dividend credits follow the same vesting requirements as the RSU awards and are not considered participating securities. The 105,102 of service condition vesting RSUs outstanding as of June 30, 2021 are expected to vest, and be released, on a weighted-average basis, over the next 2.7 years. The Company expects to recognize $3,894,000 of pre-tax compensation costs related to these service condition vesting RSUs between June 30, 2021 and their vesting dates. The Company did not modify any service condition vesting RSUs during 2020 or during the six months ended June 30, 2021.

The 113,019 of market plus service condition vesting RSUs outstanding as of June 30, 2021 are expected to vest, and be released, on a weighted-average basis, over the next 2.4 years. The Company expects to recognize $2,106,000 of pre-tax compensation costs related to these RSUs between June 30, 2021 and their vesting dates. As of June 30, 2021, the number of market plus service condition vesting RSUs outstanding that will actually vest, and be released, may be reduced to zero or increased to 169,529 depending on the total return of the Company’s common stock versus the total return of an index of bank stocks from the grant date to the vesting date. The Company did not modify any market plus service condition vesting RSUs during 2020 or during the six months ended June 30, 2021.

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Non-interest Income and Expense

6 Months Ended

Jun. 30, 2021

Other Income and Expenses [Abstract]

Non-interest Income and Expense

Non-interest Income and Expense

The following table summarizes the Company’s non-interest income for the periods indicated:

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2021		2020		2021		2020
ATM and interchange fees	$	6,558	$	5,165	$	12,419	$	10,276
Service charges on deposit accounts	3,462		3,046		6,731		7,092
Other service fees	914		734		1,785		1,492
Mortgage banking service fees	467		459		930		928
Change in value of mortgage servicing rights	(471)		(1,236)		(459)		(2,494)
Total service charges and fees	10,930		8,168		21,406		17,294
Increase in cash value of life insurance	745		710		1,418		1,430
Asset management and commission income	947		661		1,781		1,577
Gain on sale of loans	2,847		1,736		6,094		2,627
Lease brokerage income	249		127		359		320
Sale of customer checks	116		88		235		212
Gain on sale of investment securities	—		—		—		—
Gain (loss) on marketable equity securities	8		25		(45)		72
Other	115		142		819		(55)
Total other non-interest income	5,027		3,489		10,661		6,183
Total non-interest income	$	15,957	$	11,657	$	32,067	$	23,477

The components of non-interest expense were as follows:

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2021		2020		2021		2020
Base salaries, net of deferred loan origination costs	$	17,537	$	17,277	$	33,048	$	34,900
Incentive compensation	4,322		2,395		7,902		5,496
Benefits and other compensation costs	5,222		7,383		11,461		13,931
Total salaries and benefits expense	27,081		27,055		52,411		54,327
Occupancy	3,700		3,398		7,426		7,273
Data processing and software	3,201		3,657		6,403		7,024
Equipment	1,207		1,350		2,724		2,862
Intangible amortization	1,431		1,431		2,862		2,862
Advertising	734		531		1,114		1,196
ATM and POS network charges	1,551		1,210		2,797		2,583
Professional fees	1,046		741		1,640		1,444
Telecommunications	564		639		1,145		1,364
Regulatory assessments and insurance	618		360		1,230		455
Postage	124		283		322		573
Operational losses	212		184		421		405
Courier service	288		337		582		668
Gain on sale or acquisition of foreclosed assets	(15)		(16)		(66)		(57)
(Gain) loss on disposal of fixed assets	(426)		15		(426)		15
Other miscellaneous expense	2,855		4,375		5,204		7,306
Total other non-interest expense	17,090		18,495		33,378		35,973
Total non-interest expense	$	44,171	$	45,550	$	85,789	$	90,300

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Earnings Per Share

6 Months Ended

Jun. 30, 2021

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

Basic earnings per share represent income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustments to income that would result from assumed issuance. Potential common shares that may be issued by the Company relate to outstanding stock options and restricted stock units (RSUs), and are determined using the treasury stock method. Earnings per share have been computed based on the following:

	Three months ended June 30,
(in thousands)	2021		2020
Net income	$	28,362	$	7,430
Average number of common shares outstanding	29,719		29,754
Effect of dilutive stock options and restricted stock	185		129
Average number of common shares outstanding used to calculate diluted earnings per share	29,904		29,883
Options excluded from diluted earnings per share because of their antidilutive effect	—		—

	Six months ended June 30,
(in thousands)	2021		2020
Net income	$	62,011	$	23,551
Average number of common shares outstanding	29,723		30,074
Effect of dilutive stock options and restricted stock	181		129
Average number of common shares outstanding used to calculate diluted earnings per share	29,904		30,203
Options excluded from diluted earnings per share because of their antidilutive effect	—		—

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Comprehensive Income (Loss)

6 Months Ended

Jun. 30, 2021

Equity [Abstract]

Comprehensive Income (Loss)

Comprehensive Income (Loss)

Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities, are reported as a separate component of the equity section of the balance sheet identified as accumulated other comprehensive income (AOCI), such items, along with net income, are components of other comprehensive income (loss) (OCI).

The components of other comprehensive income and related tax effects are as follows:

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2021		2020		2021		2020
Unrealized holding losses on available for sale securities before reclassifications	$	7,392	$	34,959	$	(4,945)	$	5,398
Amounts reclassified out of AOCI:
Realized gain on debt securities	—		—		—		—
Unrealized holding losses on available for sale securities after reclassifications	7,392		34,959		(4,945)		5,398
Tax effect	(2,186)		(10,334)		1,461		(1,595)
Unrealized holding losses on available for sale securities, net of tax	5,206		24,625		(3,484)		3,803
Change in unfunded status of the supplemental retirement plans before reclassifications	(49)		661		(98)		1,109
Amounts reclassified out of AOCI:
Amortization of prior service cost	(15)		(13)		(29)		(27)
Amortization of actuarial losses	64		478		127		956
Total amounts reclassified out of accumulated other comprehensive income	49		465		98		929
Change in unfunded status of the supplemental retirement plans after reclassifications	—		1,126		—		2,038
Tax effect	—		—		—		—
Change in unfunded status of the supplemental retirement plans, net of tax	—		1,126		—		2,038
Change in joint beneficiary agreement liability before reclassifications	—		—		(629)		—
Tax effect	—		—		—		—
Change in joint beneficiary agreement liability before reclassifications, net of tax	—		—		(629)		—
Total other comprehensive income (loss)	$	5,206	$	25,751	$	(4,113)	$	5,841

The components of accumulated other comprehensive income, included in shareholders’ equity, are as follows:

(in thousands)	June 30, 2021		December 31, 2020
Net unrealized gain on available for sale securities	$	14,238	$	19,183
Tax effect	(4,210)		(5,671)
Unrealized holding gain on available for sale securities, net of tax	10,028		13,512
Unfunded status of the supplemental retirement plans	(1,294)		(1,294)
Tax effect	382		382
Unfunded status of the supplemental retirement plans, net of tax	(912)		(912)
Joint beneficiary agreement liability	(949)		(320)
Tax effect	—		—
Joint beneficiary agreement liability, net of tax	(949)		(320)
Accumulated other comprehensive income	$	8,167	$	12,280

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Fair Value Measurement

6 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurement

Fair Value MeasurementThe Company utilizes fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. In estimating fair value, the Company utilizes valuation techniques that are consistent with the market approach, income approach, and/or the cost approach. Inputs to valuation techniques include the assumptions that market participants would use in pricing an asset or liability including assumptions about the risk inherent in a particular valuation technique, the effect of a restriction on the sale

or use of an asset and the risk of nonperformance. Marketable equity securities, debt securities available-for-sale, loans held for sale, and mortgage servicing rights are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets on a nonrecurring basis, such loans held for investment and certain other assets. These nonrecurring fair value adjustments typically involve application impairment write-downs of individual assets.

The Company groups assets and liabilities at fair value in three levels, based on the markets in which the assets and liabilities are traded and the observable nature of the assumptions used to determine fair value. These levels are:

Level 1 - Valuation is based upon quoted prices for identical instruments traded in active markets.

Level 2 - Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market.

Level 3 - Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques.

Marketable equity securities and debt securities available for sale - Marketable equity securities and debt securities available for sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange, U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets and money market funds. Level 2 securities include mortgage-backed securities issued by government sponsored entities, municipal bonds and corporate debt securities. The Company had no securities classified as Level 3 during any of the periods covered in these financial statements.

Loans held for sale - Loans held for sale are carried at the lower of cost or fair value. The fair value of loans held for sale is based on what secondary markets are currently offering for loans with similar characteristics. As such, we classify those loans subjected to recurring fair value adjustments as Level 2.

Individually evaluated loans - Loans are not recorded at fair value on a recurring basis. However, from time to time, certain loans have individual risk characteristics not consistent with a pool of loans and is individually evaluated for credit reserves. Loans for which it is probable that payment of interest and principal will not be made in accordance with the original contractual terms of the loan agreement are typically individually evaluated. The fair value of these loans are estimated using one of several methods, including collateral value, fair value of similar debt, enterprise value, liquidation value and discounted cash flows. Those loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. Loans where an allowance is established based on the fair value of collateral require classification in the fair value hierarchy. When the fair value of the collateral is based on an observable market price or a current appraised value which uses substantially observable data, the Company records the loan as nonrecurring Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value, or the appraised value contains a significant unobservable assumption, such as deviations from comparable sales, and there is no observable market price, the Company records the loan as nonrecurring Level 3.

Foreclosed assets - Foreclosed assets include assets acquired through, or in lieu of, loan foreclosure. Foreclosed assets are held for sale and are initially recorded at fair value at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, management periodically performs valuations and the assets are carried at the lower of carrying amount or fair value less cost to sell. When the fair value of foreclosed assets is based on an observable market price or a current appraised value which uses substantially observable data, the Company records the loan as nonrecurring Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value, or the appraised value contains a significant unobservable assumption, such as deviations from comparable sales, and there is no observable market price, the Company records the foreclosed asset as nonrecurring Level 3. Revenue and expenses from operations and changes in the valuation allowance are included in other non-interest expense.

Mortgage servicing rights - Mortgage servicing rights are carried at fair value. A valuation model, which utilizes a discounted cash flow analysis using a discount rate and prepayment speed assumptions is used in the computation of the fair value measurement. While the prepayment speed assumption is currently quoted for comparable instruments, the discount rate assumption currently requires a significant degree of management judgment and is therefore considered an unobservable input. As such, the Company classifies mortgage servicing rights subjected to recurring fair value adjustments as Level 3.

The table below presents the recorded amount of assets and liabilities measured at fair value on a recurring basis (in thousands):

Fair value at June 30, 2021	Total		Level 1		Level 2		Level 3
Marketable equity securities	$	2,979	$	2,979	$	—	$	—
Debt securities available for sale:
Obligations of U.S. government corporations and agencies	1,133,416		—		1,133,416		—
Obligations of states and political subdivisions	146,924		—		146,924		—
Corporate bonds	2,556		—		2,556		—
Asset backed securities	564,672		—		564,672		—
Loans held for sale	5,723		—		5,723		—
Mortgage servicing rights	5,603		—		—		5,603
Total assets measured at fair value	$	1,861,873	$	2,979	$	1,853,291	$	5,603

Fair value at December 31, 2020	Total		Level 1		Level 2		Level 3
Marketable equity securities	$	3,025	$	3,025	$	—	$	—
Debt securities available for sale:
Obligations of U.S. government corporations and agencies	812,374		—		812,374		—
Obligations of states and political subdivisions	129,095		—		129,095		—
Corporate bonds	2,544		—		2,544		—
Asset backed securities	470,251		—		470,251		—
Loans held for sale	6,268		—		6,268		—
Mortgage servicing rights	5,092		—		—		5,092
Total assets measured at fair value	$	1,428,649	$	3,025	$	1,420,532	$	5,092

Transfers between levels of the fair value hierarchy are recognized on the actual date of the event or circumstances that caused the transfer, which generally corresponds with the Company’s quarterly valuation process. There were no transfers between any levels during the six months ended June 30, 2021, or the year ended December 31, 2020.

The following table provides a reconciliation of assets and liabilities measured at fair value using significant unobservable inputs (Level 3) on a recurring basis during the time periods indicated. Had there been any transfer into or out of Level 3 during the time periods indicated, the amount included in the “Transfers into (out of) Level 3” column would represent the beginning balance of an item in the period (interim quarter) during which it was transferred (in thousands):

Three months ended June 30,	Beginning Balance		Transfers into (out of) Level 3	Change Included in Earnings		Issuances		Ending Balance
2021: Mortgage servicing rights	$	5,607	—	$	(471)	$	467	$	5,603
2020: Mortgage servicing rights	$	5,168	—	$	(1,236)	$	318	$	4,250

Six months ended June 30,	Beginning Balance		Transfers into (out of) Level 3	Change Included in Earnings		Issuances		Ending Balance
2021: Mortgage servicing rights	$	5,092	—	$	(459)	$	970	$	5,603
2020: Mortgage servicing rights	$	6,200	—	$	(2,494)	$	544	$	4,250

The key unobservable inputs used in determining the fair value of mortgage servicing rights are mortgage prepayment speeds and the discount rate used to discount cash projected cash flows. Generally, any significant increases in the mortgage prepayment speed and discount rate utilized in the fair value measurement of the mortgage servicing rights will result in a negative fair value adjustments (and decrease in the fair value measurement). Conversely, a decrease in the mortgage prepayment speed and discount rate will result in a positive fair value adjustment (and increase in the fair value measurement).

The following table presents quantitative information about recurring Level 3 fair value measurements at June 30, 2021 and December 31, 2020:

As of June 30, 2021:	Fair Value (in thousands)		Valuation Technique	Unobservable Inputs	Range, Weighted Average
Mortgage Servicing Rights	$	5,603	Discounted cash flow	Constant prepayment rate	12% - 17%; 14.2%
				Discount rate	10% - 14%; 12%
As of December 31, 2020:
Mortgage Servicing Rights	$	5,092	Discounted cash flow	Constant prepayment rate	14% - 20.0%; 17.6%
				Discount rate	10% - 14%; 12%

The tables below present the recorded investment in assets and liabilities measured at fair value on a nonrecurring basis, as of the dates indicated (in thousands):

June 30, 2021	Total		Level 1		Level 2		Level 3		Total Gains (Losses)
Fair value:
Individually evaluated loans	$	4,912	—		—		$	4,912	$	(1,604)
Foreclosed assets	123		—		—		123		21
Total assets measured at fair value	$	5,035	$	—	$	—	$	5,035	$	(1,583)

December 31, 2020	Total		Level 1	Level 2	Level 3		Total Gains (Losses)
Fair value:
Individually evaluated loans	$	1,424	—	—	$	1,424	$	(1,489)
Foreclosed assets	979		—	—	979		155
Total assets measured at fair value	$	2,403	—	—	$	2,403	$	(1,334)

June 30, 2020	Total		Level 1	Level 2	Level 3		Total Losses
Fair value:
Individually evaluated loans	$	162	—	—	$	162	$	(16)

The individually evaluated loan amounts above represent collateral dependent loans that have been adjusted to fair value. When the Company identifies a collateral dependent loan with unique risk characteristics, the Company evaluates the need for an allowance using the current fair value of the collateral, less selling costs. Depending on the characteristics of a loan, the fair value of collateral is generally estimated by obtaining external appraisals. If the Company determines that the value of the loan is less than the recorded investment in the loan, the Company recognizes this impairment and adjust the carrying value of the loan to fair value through the allowance for credit losses. The loss represents charge-offs or impairments on collateral dependent loans for fair value adjustments based on the fair value of collateral. The carrying value of loans fully charged-off is zero.

The foreclosed assets amount above represents impaired real estate that has been adjusted to fair value. Foreclosed assets represent real estate which the Company has taken control of in partial or full satisfaction of loans. At the time of foreclosure, other real estate owned is recorded at fair value less costs to sell, which becomes the property’s new basis. Any write-downs based on the asset’s fair value at the date of acquisition are charged to the allowance for credit losses. After foreclosure, management periodically performs valuations such that the real estate is carried at the lower of its new cost basis or fair value, net of estimated costs to sell. Fair value adjustments on other real estate owned are recognized within net loss on real estate owned. The loss represents impairments on real estate owned for fair value adjustments based on the fair value of the real estate.

The Company’s property appraisals are primarily based on the sales comparison approach and income approach methodologies, which consider recent sales of comparable properties, including their income generating characteristics, and then make adjustments to reflect the general assumptions that a market participant would make when analyzing the property for purchase. These adjustments may increase or decrease an appraised value and can vary significantly depending on the location, physical characteristics and income producing potential of each property. Additionally, the quality and volume of market information available at the time of the appraisal can vary from period to period and cause significant changes to the nature and magnitude of comparable sale adjustments. Given these variations, comparable sale adjustments are generally not a reliable indicator for how fair value will increase or decrease from period to period. Under certain circumstances, management discounts are applied based on specific characteristics of an individual property.

The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis at June 30, 2021:

June 30, 2021	Fair Value (in thousands)		Valuation Technique	Unobservable Inputs	Range, Weighted Average
Individually evaluated loans	$	4,912	Sales comparison approach Income approach	Adjustment for differences between comparable sales Capitalization rate	Not meaningful N/A
Foreclosed assets (Residential real estate)	$	123	Sales comparison approach	Adjustment for differences between comparable sales	Not meaningful N/A

The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis at December 31, 2020:

December 31, 2020	Fair Value (in thousands)		Valuation Technique	Unobservable Inputs	Range, Weighted Average
Individually evaluated loans	$	1,424	Sales comparison approach Income approach	Adjustment for differences between comparable sales Capitalization rate	Not meaningful N/A
Foreclosed assets (Residential real estate)	$	979	Sales comparison approach	Adjustment for differences between comparable sales	Not meaningful N/A

Fair values for financial instruments are management’s estimates of the values at which the instruments could be exchanged in a transaction between willing parties. The Company uses the exit price notion when measuring the fair value of financial instruments. These estimates are subjective and may vary significantly from amounts that would be realized in actual transactions. In addition, other significant assets are not considered financial assets including, any mortgage banking operations, deferred tax assets, and premises and equipment. Further, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on the fair value estimates and have not been considered in any of these estimates.

	June 30, 2021				December 31, 2020
(in thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets:
Level 1 inputs:
Cash and due from banks	$	86,052	$	86,052	$	77,253	$	77,253
Cash at Federal Reserve and other banks	553,688		553,688		592,298		592,298
Level 2 inputs:
Securities held to maturity	235,778		247,019		284,563		298,726
Restricted equity securities	17,250		N/A		17,250		N/A
Level 3 inputs:
Loans, net	4,870,278		4,875,176		4,671,280		4,753,027
Financial liabilities:
Level 2 inputs:
Deposits	6,992,053		6,998,976		6,505,934		6,507,235
Other borrowings	40,559		40,559		26,914		26,914
Level 3 inputs:
Junior subordinated debt	57,852		57,795		57,635		56,632

(in thousands)	Contract Amount		Fair Value		Contract Amount		Fair Value
Off-balance sheet:
Level 3 inputs:
Commitments	$	1,474,690	$	14,747	$	1,426,827	$	14,268
Standby letters of credit	14,112		141		15,056		151
Overdraft privilege commitments	112,993		1,129		110,813		1,108

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Regulatory Matters

6 Months Ended

Jun. 30, 2021

Banking Regulation, Global Systemically Important Bank (GSIB) Surcharge [Abstract]

Regulatory Matters

Regulatory Matters

The Company is subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company must meet specific capital guidelines that involve quantitative measures of the Company’s assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Company to maintain minimum amounts and ratios (set forth in the table below) of total, Tier 1, and common equity Tier 1 capital to risk-weighted assets, and of Tier 1 capital to average assets. The following tables present actual and required capital ratios as of June 30, 2021 and December 31, 2020 for the Company and the Bank under applicable Basel III Capital Rules. The minimum capital amounts presented include the minimum required capital levels as of June 30, 2021 and December 31, 2020 based on the then phased-in provisions of the Basel III Capital Rules. Capital levels required to be considered well capitalized are based upon prompt corrective action regulations, as amended to reflect the changes under the Basel III Capital Rules.

	Actual				Required for Capital Adequacy Purposes				Required to be Considered Well Capitalized
As of June 30, 2021:	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(dollars in thousands)
Total Capital (to Risk Weighted Assets):
Consolidated	$	846,617	15.31	%	$	580,463	10.50	%	N/A		N/A
Tri Counties Bank	$	835,709	15.12	%	$	580,270	10.50	%	$	552,638	10.00	%
Tier 1 Capital (to Risk Weighted Assets):
Consolidated	$	777,241	14.06	%	$	469,899	8.50	%	N/A		N/A
Tri Counties Bank	$	766,377	13.87	%	$	469,743	8.50	%	$	442,111	8.00	%
Common equity Tier 1 Capital (to Risk Weighted Assets):
Consolidated	$	721,126	13.04	%	$	386,975	7.00	%	N/A		N/A
Tri Counties Bank	$	766,377	13.87	%	$	386,847	7.00	%	$	359,215	6.50	%
Tier 1 Capital (to Average Assets):
Consolidated	$	777,241	9.85	%	$	315,578	4.00	%	N/A		N/A
Tri Counties Bank	$	766,377	9.72	%	$	315,261	4.00	%	$	394,076	5.00	%

	Actual				Required for Capital Adequacy Purposes				Required to be Considered Well Capitalized
As of December 31, 2020:	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(dollars in thousands)
Total Capital (to Risk Weighted Assets):
Consolidated	$	793,433	15.22	%	$	547,352	10.50	%	N/A		N/A
Tri Counties Bank	$	780,320	14.97	%	$	547,156	10.50	%	$	521,101	10.00	%
Tier 1 Capital (to Risk Weighted Assets):
Consolidated	$	727,879	13.96	%	$	443,094	8.50	%	N/A		N/A
Tri Counties Bank	$	714,811	13.72	%	$	442,936	8.50	%	$	416,881	8.00	%
Common equity Tier 1 Capital (to Risk Weighted Assets):
Consolidated	$	671,975	12.89	%	$	364,901	7.00	%	N/A		N/A
Tri Counties Bank	$	714,811	13.72	%	$	364,771	7.00	%	$	338,716	6.50	%
Tier 1 Capital (to Average Assets):
Consolidated	$	727,879	9.93	%	$	293,138	4.00	%	N/A		N/A
Tri Counties Bank	$	714,811	9.76	%	$	292,949	4.00	%	$	366,186	5.00	%

As of June 30, 2021 and December 31, 2020, capital levels at the Company and the Bank exceed all capital adequacy requirements under the Basel III Capital Rules. Also, at June 30, 2021 and December 31, 2020, the Bank’s capital levels exceeded the minimum amounts necessary to be considered well capitalized under the current regulatory framework for prompt corrective action.

The Basel III Capital Rules require for all banking organizations to maintain a capital conservation buffer above the minimum risk-based capital requirements in order to avoid certain limitations on capital distributions, stock repurchases and discretionary bonus payments to executive officers. The capital conservation buffer is exclusively composed of common equity tier 1 capital, and it applies to each of the risk-based capital ratios but not the leverage ratio. At June 30, 2021, the Company and the Bank are in compliance with the capital conservation buffer requirement.

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Subsequent Events	6 Months Ended
	Jun. 30, 2021
Subsequent Events [Abstract]
Subsequent Events	Subsequent EventsOn July 27, 2021, the Company entered into an Agreement and Plan of Merger and Reorganization (the “Merger Agreement”) with Valley Republic Bancorp, a California corporation (“Valley”), providing for the merger of Valley with and into the Company, with the Company as the surviving corporation. The Merger Agreement contemplates that immediately after the Merger, Valley Republic Bank, a California state-chartered bank and wholly-owned subsidiary of Valley, will merge with and into Tri Counties Bank, a California state-chartered bank and wholly-owned subsidiary of the Company, with Tri Counties Bank as the surviving bank (the “Bank Merger”). The Merger Agreement was adopted and unanimously approved by the Board of Directors of each of the Company and Valley. As of June 30, 2021, Valley had a total asset size of approximately $1.36 billion. The transaction, subject to customary regulatory approvals, is expected to close during the fourth quarter of 2021.

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2021

Accounting Policies [Abstract]

Description of Business and Basis of Presentation

Description of Business and Basis of Presentation

TriCo Bancshares (the “Company” or “we”) is a California corporation organized to act as a bank holding company for Tri Counties Bank (the “Bank”). The Company and the Bank are headquartered in Chico, California. The Bank is a California-chartered bank that is engaged in the general commercial banking business in 28 California counties. The Company has five capital subsidiary business trusts (collectively, the “Capital Trusts”) that issued trust preferred securities, including two organized by the Company and three acquired with the acquisition of North Valley Bancorp.

The consolidated financial statements are prepared in accordance with accounting policies generally accepted in the United States of America and general practices in the banking industry. All adjustments necessary for a fair presentation of these consolidated financial statements have been included and are of a normal and recurring nature. The financial statements include the accounts of the Company. All inter-company accounts and transactions have been eliminated in consolidation. For financial reporting purposes, the Company’s investments in the Capital Trusts of $1,737,000 are accounted for under the equity method and, accordingly, are not consolidated and are included in other assets on the consolidated balance sheet. The subordinated debentures issued and guaranteed by the Company and held by the Capital Trusts are reflected as debt on the Company’s consolidated balance sheet.

Use of Estimates in the Preparation of Financial Statements

Use of Estimates in the Preparation of Financial Statements

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 (the “2020 Annual Report”). The Company believes that the disclosures made are adequate to make the information not misleading.

Segment and Significant Group Concentration of Credit Risk

Segment and Significant Group Concentration of Credit Risk

The Company grants agribusiness, commercial, consumer, and residential loans to customers located throughout northern and central California. The Company has a diversified loan portfolio within the business segments located in this geographical area. The Company currently classifies all its operation into one business segment that it denotes as community banking.

Geographical Descriptions

Geographical Descriptions

For the purpose of describing the geographical location of the Company’s operations, the Company has defined northern California as that area of California north of, and including, Stockton to the east and San Jose to the west; central California as that area of the state south of Stockton and San Jose, to and including, Bakersfield to the east and San Luis Obispo to the west; and southern California as that area of the state south of Bakersfield and San Luis Obispo.

Reclassification

Reclassification

Some items in the prior year consolidated financial statements were reclassified to conform to the current presentation. Reclassifications had no effect on prior year net income or shareholders’ equity.

Cash and Cash Equivalents

Cash and Cash Equivalents

Net cash flows are reported for loan and deposit transactions and other borrowings. For purposes of the consolidated statement of cash flows, cash, due from banks with original maturities less than 90 days, interest-earning deposits in other banks, and Federal funds sold are considered to be cash equivalents.

Allowance for Credit Losses - Securities

Allowance for Credit Losses - Securities

The Company measures expected credit losses on held-to-maturity debt securities on a collective basis by major security type, then further

disaggregated by sector and bond rating. Accrued interest receivable on held-to-maturity (HTM) debt securities totaled was considered insignificant at June 30, 2021 and is therefore excluded from the estimate of credit losses. The estimate of expected credit losses considers historical credit loss information that is adjusted for current condition and reasonable and supportable forecasts based on current and expected changes in credit ratings and default rates. Based on the implied guarantees of the U. S. Government or its agencies related to certain of these investment securities, and the absence of any historical or expected losses, substantially all qualify for a zero loss assumption. Management has separately evaluated its HTM investment securities from obligations of state and political subdivisions utilizing the historical loss data represented by similar securities over a period of time spanning nearly 50 years. As a result of this evaluation, management determined that the expected credit losses associated with these securities is not significant for financial reporting purposes and therefore, no allowance for credit losses has been recognized.The Company evaluates available for sale debt securities in an unrealized loss position to determine whether the decline in the fair value below the amortized cost basis (impairment) is due to credit-related factors or noncredit-related factors. Any impairment that is not credit related is recognized in other comprehensive income, net of applicable taxes. Credit-related impairment is recognized as an allowance for credit losses on the balance sheet, limited to the amount by which the amortized cost basis exceeds the fair value, with a corresponding adjustment to earnings. Both the allowance for credit losses and the adjustment to net income may be reversed if conditions change. However, if the Company intends to sell an impaired available for sale debt security or more likely than not will be required to sell such a security before recovering its amortized cost basis, the entire impairment amount is recognized in earnings with a corresponding adjustment to the security's amortized cost basis. In evaluating available for sale debt securities in unrealized loss positions for impairment and the criteria regarding its intent or requirement to sell such securities, the Company considers the extent to which fair value is less than amortized cost, whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuers' financial condition, among other factors. Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the ACL when management believes the uncollectability of an available for sale debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met.

Loans

Loans

Loans that management has the intent and ability to hold until maturity or payoff are reported at principle amount outstanding, net of deferred loan fees and costs. Loans are placed in nonaccrual status when reasonable doubt exists as to the full, timely collection of interest or principal, or a loan becomes contractually past due by 90 days or more with respect to interest or principal and is not well secured and in the process of collection. When a loan is placed on nonaccrual status, all interest previously accrued but not collected is reversed against interest income. Income on such loans is then recognized only to the extent that cash is received and where the future collection of principal is considered probable. Interest accruals are resumed on such loans only when they are brought fully current with respect to interest and principal and when, in the judgment of Management, the loan is estimated to be fully collectible as to both principal and interest. Accrued interest receivable is not included in the calculation of the allowance for credit losses.

Allowance for Credit Losses - Loans

Allowance for Credit Losses - Loans

The allowance for credit losses (ACL) is a valuation account that is deducted from the loan's amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when management believes the recorded loan balance is confirmed as uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Regardless of the determination that a charge-off is appropriate for financial accounting purposes, the Company manages its loan portfolio by continually monitoring, where possible, a borrower's ability to pay through the collection of financial information, delinquency status, borrower discussion and the encouragement to repay in accordance with the original contract or modified terms, if appropriate.

Management estimates the allowance balance using relevant information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. The allowance for credit losses is measured on a collective (pool) basis when similar risk characteristics exist. Historical credit loss experience provides the basis for the estimation of expected credit losses, which captures loan balances as of a point in time to form a cohort, then tracks the respective losses generated by that cohort of loans over the remaining life. The Company identified and accumulated loan cohort historical loss data beginning with the fourth quarter of 2008 and through the current period. In situations where the Company's actual loss history was not statistically relevant, the loss history of peers, defined as financial institutions with assets greater than three billion and less than ten billion, were utilized to create a minimum loss rate. Adjustments to historical loss information are made for differences in relevant current loan-specific risk characteristics, such as historical timing of losses relative to the loan origination. In its loss forecasting framework, the Company incorporates forward-looking information through the use of macroeconomic scenarios applied over the forecasted life of the assets. These macroeconomic scenarios incorporate variables that have historically been key drivers of increases and decreases in credit losses. These variables include, but are not limited to changes in environmental conditions, such as California unemployment rates, household debt levels and U.S. gross domestic product.

A loan is considered to be collateral dependent when repayment is expected to be provided substantially through the operation or sale of the collateral. The ACL on collateral dependent loans is measured using the fair value of the underlying collateral, adjusted for costs to

sell when applicable, less the amortized cost basis of the financial asset. If the value of underlying collateral is determined to be less than the recorded amount of the loan, a charge-off will be taken. Loans for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, is considered to be a troubled debt restructuring (TDR). The ACL on a TDR is measured using the same method as all other portfolio loans, except when the value of a concession cannot be measured using a method other than the discounted cash flow method. When the value of a concession is measured using the discounted cash flow method, the ACL is determined by discounting the expected future cash flows at the original interest rate of the loan.

The Company has identified the following portfolio segments to evaluate and measure the allowance for credit loss:

Commercial real estate:

Commercial real estate - Non-owner occupied: These commercial properties typically consist of buildings which are leased to others for their use and rely on rents as the primary source of repayment. Property types are predominantly office, retail, or light industrial but the portfolio also has some special use properties. As such, the risk of loss associated with these properties is primarily driven by general economic changes or changes in regional economies and the impact of such on a tenant’s ability to pay. Ultimately this can affect occupancy, rental rates, or both. Additional risk of loss can come from new construction resulting in oversupply, the costs to hold or operate the property, or changes in interest rates. The terms on these loans at origination typically have maturities from five to ten years with amortization periods from fifteen to thirty years.

Commercial real estate - Owner occupied: These credits are primarily susceptible to changes in the financial condition of the business operated by the property owner. This may be driven by changes in, among other things, industry challenges, factors unique to the operating geography of the borrower, change in the individual fortunes of the business owner, general economic conditions and changes in business cycles. When default is driven by issues related specifically to the business owner, collateral values tend to provide better repayment support and may result in little or no loss. Alternatively, when default is driven more by general economic conditions, the underlying collateral may have devalued more and thus result in larger losses in the event of default. The terms on these loans at origination typically have maturities from five to ten years with amortization periods from fifteen to thirty years.

Multifamily: These commercial properties are generally comprised of more than four rentable units, such as apartment buildings, with each unit intended to be occupied as the primary residence for one or more persons. Multifamily properties are also subject to changes in general or regional economic conditions, such as unemployment, ultimately resulting in increased vacancy rates or reduced rents or both. In addition, new construction can create an oversupply condition and market competition resulting in increased vacancy, reduced market rents, or both. Due to the nature of their use and the greater likelihood of tenant turnover, the management of these properties is more intensive and therefore is more critical to the preclusion of loss.

Farmland: While the Company has few loans that were originated for the purpose of the acquisition of these commercial properties, loans secured by farmland represent unique risks that are associated with the operation of an agricultural businesses. The valuation of farmland can vary greatly over time based on the property's access to resources including but not limited to water, crop prices, foreign exchange rates, government regulation or restrictions, and the nature of ongoing capital investment needed to maintain the quality of the property. Loans secured by farmland typically represent less risk to the Company than other agriculture loans as the real estate typically provides greater support in the event of default or need for longer term repayment.

Consumer loans:

SFR 1-4 1st DT Liens: The most significant drivers of potential loss within the Company's residential real estate portfolio relate general, regional, or individual changes in economic conditions and their effect on employment and borrowers cash flow. Risk in this portfolio is best measured by changes in borrower credit score and loan-to-value. Loss estimates are based on the general movement in credit score, economic outlook and its effects on employment and the value of homes and the Bank’s historical loss experience adjusted to reflect the economic outlook and the unemployment rate.

SFR HELOCs and Junior Liens: Similar to residential real estate term loans, HELOCs and junior liens performance is also primarily driven by borrower cash flows based on employment status. However, HELOCs carry additional risks associated with the fact that most of these loans are secured by a deed of trust in a position that is junior to the primary lien holder. Furthermore, the risk that as the borrower's financial strength deteriorates, the outstanding balance on these credit lines may increase as they may only be canceled by the Company if certain limited criteria are met. In addition to the allowance for credit losses maintained as a percent of the outstanding loan balance, the Company maintains additional reserves for the unfunded portion of the HELOC.

Other: The majority of consumer loans are secured by automobiles, with the remainder primarily unsecured revolving debt (credit cards). These loans are susceptible to three primary risks; non-payment due to income loss, over-extension of credit and, when the borrower is unable to pay, shortfall in collateral value, if any. Typically non-payment is due to loss of job and will follow general economic trends in the marketplace driven primarily by rises in the unemployment rate. Loss of collateral value can be due to market demand shifts, damage to collateral itself or a combination of those factors. Credit card loans are unsecured and while collection efforts are pursued in the event of default, there is typically limited opportunity for recovery. Loss estimates are based on the general movement in credit score, economic outlook and its effects on employment and the Bank’s historical loss experience adjusted to reflect the economic outlook and the unemployment rate.

Commercial and Industrial:

Repayment of these loans is primarily based on the cash flow of the borrower, and secondarily on the underlying collateral provided by the borrower. A borrower's cash flow may be unpredictable, and collateral securing these loans may fluctuate in value. Most often, collateral includes accounts receivable, inventory, or equipment. Collateral securing these loans may depreciate over time, may be difficult to appraise, may be illiquid and may fluctuate in value based on the success of the business. Actual and forecast changes in gross domestic product are believed to be corollary to losses associated with these credits.

Construction:

While secured by real estate, construction loans represent a greater level of risk than term real estate loans due to the nature of the additional risks associated with the not only the completion of construction within an estimated time period and budget, but also the need to either sell the building or reach a level of stabilized occupancy sufficient to generate the cash flows necessary to support debt service and operating costs. The Company seeks to mitigate the additional risks associated with construction lending by requiring borrowers to comply with lower loan to value ratios and additional covenants as well as strong tertiary support of guarantors. The loss forecasting model applies the historical rate of loss for similar loans over the expected life of the asset as adjusted for macroeconomic factors.

Agriculture Production:

Repayment of agricultural loans is dependent upon successful operation of the agricultural business, which is greatly impacted by factors outside the control of the borrower. These factors include adverse weather conditions, including access to water, that may impact crop yields, loss of livestock due to disease or other factors, declines in market prices for agriculture products, changes in foreign exchange, and the impact of government regulations. In addition, many farms are dependent on a limited number of key individuals whose injury or death may significantly affect the successful operation of the business. Consequently, agricultural production loans may involve a greater degree of risk than other types of loans.

Leases:

The loss forecasting model applies the historical rate of loss for similar loans over the expected life of the asset. Leases typically represent an elevated level of credit risk as compared to loans secured by real estate as the collateral for leases is often subject to a more rapid rate of depreciation or depletion. The ultimate severity of loss is impacted by the type of collateral securing the exposure, the size of the exposure, the borrower’s industry sector, any guarantors and the geographic market. Assumptions of expected loss are conditioned to the economic outlook and the other variables discussed above.

Unfunded commitments:

The estimated credit losses associated with these unfunded lending commitments is calculated using the same models and methodologies noted above and incorporate utilization assumptions at time of default. The reserve for unfunded commitments is maintained on the consolidated balance sheet in other liabilities.

Accounting Standards Adopted in 2021 and Pending Adoption

Accounting Standards Adopted in 2021

On January 1, 2021, the Company adopted ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This ASU simplified the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The guidance also promoted consistent application and simplification of GAAP for other areas of Topic 740 by clarifying and amending existing guidance.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted in response to the Coronavirus Disease 2019 (COVID-19) pandemic. The CARES Act provides optional temporary relief from troubled debt restructuring and impairment accounting requirements for loan modifications related to the COVID-19 pandemic made during the period from March 1, 2020 to the earlier of December 31, 2020 or 60 days after the national emergency concerning COVID-19 declared by the President terminates. The applicable period for this relief was extended through 2021 by way of the Consolidated Appropriations Act. Following the passage of the CARES Act legislation, the "Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus" was issued by federal bank regulators, which similarly offers temporary relief from troubled debt restructuring accounting for loan payment deferrals for certain customers whose businesses are experiencing economic hardship due to Coronavirus. The Interagency Statement requires the modification event to be short-term and COVID-19 related, requiring the borrower be not more than 30 days past due as of the date the modification program was implemented, and allowing Management to apply judgement as when the modification program terminates. The ability to suspend TDR accounting under either program does not apply to any adverse impact on the credit of a borrower that is not related to the COVID-19 pandemic.

Accounting Standards Pending Adoption

FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU provides temporary optional guidance to ease the potential burden in accounting for reference rate reform by providing optional expedients and exceptions for applying generally accepted accounting principles (GAAP) to contracts, hedging

relationships, and other transactions affected if certain criteria are met. The amendments in this Update apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The election to apply the optional relief for existing fair value and cash flow hedge accounting relationships may be made on a hedge-by-hedge basis and across multiple reporting periods. Amendments in this ASU are effective for the Company through December 31, 2022. As the Company has an insignificant number of instruments that are applicable to this ASU, management has determined that no impact to the valuations of these instruments are applicable for financial reporting purposes.

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Investment Securities (Tables)

6 Months Ended

Jun. 30, 2021

Investments, Debt and Equity Securities [Abstract]

Amortized Cost and Estimated Fair Values of Investments Securities

The amortized cost, estimated fair values and allowance for credit losses of investments in debt securities are summarized in the following tables:

	June 30, 2021
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Estimated Fair Value
Debt Securities Available for Sale
Obligations of U.S. government agencies	$	1,126,342	$	11,628	$	(4,554)	$	—	$	1,133,416
Obligations of states and political subdivisions	141,168		6,208		(452)		—		146,924
Corporate bonds	2,473		83		—		—		2,556
Asset backed securities	563,347		2,941		(1,616)		—		564,672
Total debt securities available for sale	$	1,833,330	$	20,860	$	(6,622)	$	—	$	1,847,568

Debt Securities Held to Maturity
Obligations of U.S. government agencies	$	226,925	$	10,926	$	—	$	—	$	237,851
Obligations of states and political subdivisions	8,853		315		—		—		9,168
Total debt securities held to maturity	$	235,778	$	11,241	$	—	$	—	$	247,019

	December 31, 2020
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Estimated Fair Value
Debt Securities Available for Sale
Obligations of U.S. government agencies	$	795,555	$	17,710	$	(891)	$	—	$	812,374
Obligations of states and political subdivisions	123,347		5,748		—		—		129,095
Corporate bonds	2,459		85		—		—		2,544
Asset backed securities	473,720		1,682		(5,151)		—		470,251
Total debt securities available for sale	$	1,395,081	$	25,225	$	(6,042)	$	—	$	1,414,264
Debt Securities Held to Maturity
Obligations of U.S. government agencies	273,667		13,774		—		$	—	287,441
Obligations of states and political subdivisions	10,896		389		—		—		11,285
Total debt securities held to maturity	$	284,563	$	14,163	$	—	$	—	$	298,726

Amortized Cost and Estimated Fair Value of Debt Securities by Contractual Maturity

As of June 30, 2021, the contractual final maturity for available for sale and held to maturity investment securities is as follows:

Debt Securities	Available for Sale				Held to Maturity
(in thousands)	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Due in one year	$	1,093	$	1,117	$	—	$	—
Due after one year through five years	181,624		181,791		1,011		1,125
Due after five years through ten years	337,145		338,985		20,641		21,363
Due after ten years	1,313,468		1,325,675		214,126		224,531
Totals	$	1,833,330	$	1,847,568	$	235,778	$	247,019

Gross Unrealized Losses on Investment Securities

Gross unrealized losses on debt securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows:

June 30, 2021:	Less than 12 months				12 months or more				Total
(in thousands)	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Debt Securities Available for Sale
Obligations of U.S. government agencies	$	566,137	$	(4,554)	$	—	$	—	$	566,137	$	(4,554)
Obligations of states and political subdivisions	24,207		(452)		—		—		24,207		(452)
Asset backed securities	103,518		(394)		152,895		(1,222)		256,413		(1,616)
Total debt securities available for sale	$	693,862	$	(5,400)	$	152,895	$	(1,222)	$	846,757	$	(6,622)

December 31, 2020:	Less than 12 months				12 months or more				Total
(in thousands)	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Debt Securities Available for Sale
Obligations of U.S. government agencies	$	160,543	$	(891)	$	—	$	—	$	160,543	$	(891)
Asset backed securities	51,544		(441)		297,020		(4,710)		348,564		(5,151)
Total debt securities available for sale	$	212,087	$	(1,332)	$	297,020	$	(4,710)	$	509,107	$	(6,042)

Amortized Cost of Debt Securities Held-to-Maturity

The following table summarizes the amortized cost of debt securities held-to-maturity at the dates indicated, aggregated by credit quality indicator:

	June 30, 2021				December 31, 2020
	AAA/AA/A		BBB/BB/B		AAA/AA/A		BBB/BB/B
	(In thousands)				(In thousands)
Debt Securities Held to Maturity
Obligations of U.S. government agencies	$	226,925	$	—	$	273,667	$	—
Obligations of states and political subdivisions	8,853		—		10,896		—
Total debt securities held to maturity	$	235,778	$	—	$	284,563	$	—

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Loans (Tables)

6 Months Ended

Jun. 30, 2021

Receivables [Abstract]

Summary of Loan Balances

A summary of loan balances follows:

(in thousands)	June 30, 2021		December 31, 2020
Commercial real estate:
CRE non-owner occupied	$	1,534,256	$	1,535,555
CRE owner occupied	659,948		624,375
Multifamily	828,101		639,480
Farmland	172,031		152,492
Total commercial real estate loans	3,194,336		2,951,902
Consumer:
SFR 1-4 1st DT liens	654,373		546,592
SFR HELOCs and junior liens	325,127		327,484
Other	71,109		78,032
Total consumer loans	1,050,609		952,108
Commercial and industrial	452,069		526,327
Construction	200,714		284,842
Agriculture production	41,967		44,164
Leases	5,199		3,784
Total loans, net of deferred loan fees and discounts	$	4,944,894	$	4,763,127
Total principal balance of loans owed, net of charge-offs	$	4,984,824	$	4,805,596
Unamortized net deferred loan fees	(19,843)		(16,984)
Discounts to principal balance of loans owed, net of charge-offs	(20,087)		(25,485)
Total loans, net of unamortized deferred loan fees and discounts	$	4,944,894	$	4,763,127
Allowance for credit losses on loans	$	(86,062)	$	(91,847)

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Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2021

Allowance For Loan And Lease Losses [Abstract]

Summary of Activity in Allowance for Loan Losses, and Ending Balance of Loans, Net of Unearned Fees for Periods Indicated

For the periods indicated, the following tables summarize the activity in the allowance for credit losses on loans which is recorded as a contra asset, and the reserve for unfunded commitments which is recorded on the balance sheet within other liabilities:

	Allowance for credit losses – Three months ended June 30, 2021
(in thousands)	Beginning Balance		Charge-offs		Recoveries		Provision (benefit)		Ending  Balance
Commercial real estate:
CRE non-owner occupied	$	26,434	$	—	$	—	$	(406)	$	26,028
CRE owner occupied	9,874		—		—		589		10,463
Multifamily	12,371		—		—		825		13,196
Farmland	1,724		—		—		226		1,950
Total commercial real estate loans	50,403		—		—		1,234		51,637
Consumer:
SFR 1-4 1st DT liens	10,665		—		1		(37)		10,629
SFR HELOCs and junior liens	11,079		—		512		(890)		10,701
Other	2,860		(86)		59		(213)		2,620
Total consumer loans	24,604		(86)		572		(1,140)		23,950
Commercial and industrial	4,464		(301)		79		269		4,511
Construction	5,476		—		—		(525)		4,951
Agriculture production	988		—		2		17		1,007
Leases	6		—		—		—		6
Allowance for credit losses on loans	85,941		(387)		653		(145)		86,062
Reserve for unfunded commitments	3,580		—		—		(115)		3,465
Total	$	89,521	$	(387)	$	653	$	(260)	$	89,527

	Allowance for credit losses – Six months ended June 30, 2021
(in thousands)	Beginning Balance		Charge-offs		Recoveries		Provision (benefit)		Ending  Balance
Commercial real estate:
CRE non-owner occupied	$	29,380	$	—	$	2	$	(3,354)	$	26,028
CRE owner occupied	10,861		—		1		(399)		10,463
Multifamily	11,472		—		—		1,724		13,196
Farmland	1,980		—		—		(30)		1,950
Total commercial real estate loans	53,693		—		3		(2,059)		51,637
Consumer:
SFR 1-4 1st DT liens	10,117		—		11		501		10,629
SFR HELOCs and junior liens	11,771		—		797		(1,867)		10,701
Other	3,260		(279)		165		(526)		2,620
Total consumer loans	25,148		(279)		973		(1,892)		23,950
Commercial and industrial	4,252		(334)		215		378		4,511
Construction	7,540		—		—		(2,589)		4,951
Agriculture production	1,209		—		22		(224)		1,007
Leases	5		—		—		1		6
Allowance for credit losses on loans	91,847		(613)		1,213		(6,385)		86,062
Reserve for unfunded commitments	3,400		—		—		65		3,465
Total	$	95,247	$	(613)	$	1,213	$	(6,320)	$	89,527

	Allowance for credit losses – Year ended December 31, 2020
(in thousands)	Beginning Balance		Adoption of CECL		Charge-offs		Recoveries		Provision (benefit)		Ending Balance
Commercial real estate:
CRE non-owner occupied	$	5,948	$	6,701	$	—	$	198	$	16,533	$	29,380
CRE owner occupied	2,027		2,281		—		28		6,525		10,861
Multifamily	3,352		2,281		—		—		5,839		11,472
Farmland	668		585		(182)		—		909		1,980
Total commercial real estate loans	11,995		11,848		(182)		226		29,806		53,693
Consumer:
SFR 1-4 1st DT liens	2,306		2,675		(13)		416		4,733		10,117
SFR HELOCs and junior liens	6,183		4,638		(116)		304		762		11,771
Other	1,595		971		(670)		347		1,017		3,260
Total consumer loans	10,084		8,284		(799)		1,067		6,512		25,148
Commercial and industrial	4,867		(1,961)		(774)		568		1,552		4,252
Construction	3,388		933		—		—		3,219		7,540
Agriculture production	261		(179)		—		24		1,103		1,209
Leases	21		(12)		—		—		(4)		5
Allowance for credit losses on loans	30,616		18,913		(1,755)		1,885		42,188		91,847
Reserve for unfunded commitments	2,775		—		—		—		625		3,400
Total	$	33,391	$	18,913	$	(1,755)	$	1,885	$	42,813	$	95,247

	Allowance for credit losses – Three months ended June 30, 2020
(in thousands)	Beginning Balance		Charge-offs		Recoveries		Provision		Ending Balance
Commercial real estate:
CRE non-owner occupied	$	18,034	$	—	$	5	$	8,052	$	26,091
CRE owner occupied	5,366		—		4		3,340		8,710
Multifamily	5,140		—		—		3,441		8,581
Farmland	713		—		—		755		1,468
Total commercial real estate loans	29,253		—		9		15,588		44,850
Consumer:
SFR 1-4 1st DT liens	5,650		(11)		2		2,374		8,015
SFR HELOCs and junior liens	11,196		(23)		92		843		12,108
Other	2,746		(243)		72		467		3,042
Total consumer loans	19,592		(277)		166		3,684		23,165
Commercial and industrial	3,867		(214)		55		310		4,018
Construction	4,595		—		—		2,180		6,775
Agriculture production	593		—		—		326		919
Leases	11		—		—		1		12
Allowance for credit losses on loans	$	57,911	$	(491)	$	230	$	22,089	$	79,739
Reserve for unfunded commitments	2,845		—		—		154		2,999
Total	$	60,756	$	(491)	$	230	$	22,243	$	82,738

	Allowance for credit losses – Six months ended June 30, 2020
(in thousands)	Beginning Balance		Adoption of CECL		Charge-offs		Recoveries		Provision		Ending Balance
Commercial real estate:
CRE non-owner occupied	$	5,948	$	6,701	$	—	$	193	$	13,249	$	26,091
CRE owner occupied	2,027		2,281		—		9		4,393		8,710
Multifamily	3,352		2,281		—		—		2,948		8,581
Farmland	668		585		—		—		215		1,468
Total commercial real estate loans	11,995		11,848		—		202		20,805		44,850
Consumer:
SFR 1-4 1st DT liens	2,306		2,675		(11)		412		2,633		8,015
SFR HELOCs and junior liens	6,183		4,638		(23)		140		1,170		12,108
Other	1,595		971		(373)		167		682		3,042
Total consumer loans	10,084		8,284		(407)		719		4,485		23,165
Commercial and industrial	4,867		(1,961)		(594)		181		1,525		4,018
Construction	3,388		933		—		—		2,454		6,775
Agriculture production	261		(179)		—		20		817		919
Leases	21		(12)		—		—		3		12
Allowance for credit losses on loans	30,616		18,913		(1,001)		1,122		30,089		79,739
Reserve for unfunded commitments	2,775		—		—		—		224		2,999
Total	$	33,391	$	18,913	$	(1,001)	$	1,122	$	30,313	$	82,738

Schedule Credit Quality Indicators

Based on the most recent analysis performed, the risk category of loans by class of loans is as follows for the period indicated:

	Term Loans Amortized Cost Basis by Origination Year – As of June 30, 2021
(in thousands)	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
Commercial real estate:
CRE non-owner occupied risk ratings
Pass	$	89,643	$	120,974	$	206,093	$	137,384	$	246,584	$	596,837	$	72,393	$	—	$	1,469,908
Special Mention	—		—		6,191		11,613		3,667		17,202		10,760		—		49,433
Substandard	—		—		—		1,416		568		12,931		—		—		14,915
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total CRE non-owner occupied risk ratings	$	89,643	$	120,974	$	212,284	$	150,413	$	250,819	$	626,970	$	83,153	$	—	$	1,534,256

Commercial real estate:
CRE owner occupied risk ratings
Pass	$	89,094	$	99,949	$	68,668	$	55,048	$	55,684	$	248,033	$	19,755	$	—	$	636,231
Special Mention	—		—		—		288		6,797		8,447		—		—		15,532
Substandard	—		—		1,483		1,262		465		4,975		—		—		8,185
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total CRE owner occupied risk ratings	$	89,094	$	99,949	$	70,151	$	56,598	$	62,946	$	261,455	$	19,755	$	—	$	659,948

Commercial real estate:
Multifamily risk ratings
Pass	$	176,116	$	86,806	$	113,996	$	121,226	$	91,054	$	168,088	$	24,533	$	—	$	781,819
Special Mention	—		9,385		—		—		—		24,669		7,723		—		41,777
Substandard	—		—		4,334		—		—		171		—		—		4,505
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total multifamily loans	$	176,116	$	96,191	$	118,330	$	121,226	$	91,054	$	192,928	$	32,256	$	—	$	828,101

Commercial real estate:
Farmland risk ratings
Pass	$	26,440	$	18,526	$	21,676	$	18,051	$	8,397	$	21,476	$	44,775	$	—	$	159,341
Special Mention	—		—		—		—		1,197		3,316		1,775		—		6,288
Substandard	—		—		3,267		—		590		1,111		1,434		—		6,402
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total farmland loans	$	26,440	$	18,526	$	24,943	$	18,051	$	10,184	$	25,903	$	47,984	$	—	$	172,031

Consumer loans:
SFR 1-4 1st DT liens risk ratings
Pass	$	173,937	$	182,911	$	59,675	$	39,522	$	41,506	$	139,178	$	—	$	4,812	$	641,541
Special Mention	—		—		288		1,154		420		2,779		—		977		5,618
Substandard	—		—		—		1,131		273		5,440		—		370		7,214
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total SFR 1st DT liens	$	173,937	$	182,911	$	59,963	$	41,807	$	42,199	$	147,397	$	—	$	6,159	$	654,373

	Term Loans Amortized Cost Basis by Origination Year – As of June 30, 2021
(in thousands)	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
Consumer loans:
SFR HELOCs and Junior Liens
Pass	$	624	$	—	$	—	$	—	$	—	$	242	$	300,548	$	11,338	$	312,752
Special Mention	—		—		—		—		—		92		4,386		884		5,362
Substandard	—		—		—		—		—		17		5,460		1,536		7,013
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total SFR HELOCs and Junior Liens	$	624	$	—	$	—	$	—	$	—	$	351	$	310,394	$	13,758	$	325,127

Consumer loans:
Other risk ratings
Pass	$	12,077	$	19,995	$	22,680	$	10,425	$	2,749	$	1,367	$	576	$	—	$	69,869
Special Mention	—		52		211		243		98		67		72		—		743
Substandard	—		67		88		126		73		132		11		—		497
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total other consumer loans	$	12,077	$	20,114	$	22,979	$	10,794	$	2,920	$	1,566	$	659	$	—	$	71,109

Commercial and industrial loans:
Commercial and industrial risk ratings
Pass	$	202,893	$	73,077	$	40,966	$	14,631	$	9,585	$	9,484	$	94,260	$	840	$	445,736
Special Mention	—		29		119		550		116		161		429		—		1,404
Substandard	—		—		166		102		1,011		684		2,887		79		4,929
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total commercial and industrial loans	$	202,893	$	73,106	$	41,251	$	15,283	$	10,712	$	10,329	$	97,576	$	919	$	452,069

Construction loans:
Construction risk ratings
Pass	$	17,725	$	88,892	$	51,436	$	10,722	$	2,092	$	23,539	$	1	$	—	$	194,407
Special Mention	—		—		—		—		346		1,460		—		—		1,806
Substandard	—		—		—		—		—		4,501		—		—		4,501
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total construction loans	$	17,725	$	88,892	$	51,436	$	10,722	$	2,438	$	29,500	$	1	$	—	$	200,714

Agriculture production loans:
Agriculture production risk ratings
Pass	$	1,241	$	1,012	$	1,767	$	1,189	$	1,229	$	1,006	$	32,132	$	—	$	39,576
Special Mention	—		—		—		181		—		74		2,016		—		2,271
Substandard	—		—		—		—		—		—		120		—		120
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total agriculture production loans	$	1,241	$	1,012	$	1,767	$	1,370	$	1,229	$	1,080	$	34,268	$	—	$	41,967

	Term Loans Amortized Cost Basis by Origination Year – As of June 30, 2021
(in thousands)	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
Leases:
Lease risk ratings
Pass	$	5,199	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$5,199
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total leases	$	5,199	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	5,199

Total loans outstanding:
Risk ratings
Pass	$	794,989	$	692,142	$	586,957	$	408,198	$	458,880	$	1,209,250	$	588,973	$	16,990	$	4,756,379
Special Mention	—		9,466		6,809		14,029		12,641		58,267		27,161		1,861		130,234
Substandard	—		67		9,338		4,037		2,980		29,962		9,912		1,985		58,281
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total loans outstanding	$	794,989	$	701,675	$	603,104	$	426,264	$	474,501	$	1,297,479	$	626,046	$	20,836	$	4,944,894

	Term Loans Amortized Cost Basis by Origination Year – As of December 31, 2020
(in thousands)	2020		2019		2018		2017		2016		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
Commercial real estate:
CRE non-owner occupied risk ratings
Pass	$	120,520	$	207,899	$	155,730	$	256,677	$	179,523	$	460,644	$	76,730	$	—	$	1,457,723
Special Mention	—		7,455		11,692		5,407		15,773		18,832		12,205		—		71,364
Substandard	—		—		1,449		584		2,147		2,288		—		—		6,468
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total CRE non-owner occupied risk ratings	$	120,520	$	215,354	$	168,871	$	262,668	$	197,443	$	481,764	$	88,935	$	—	$	1,535,555

Commercial real estate:
CRE owner occupied risk ratings
Pass	$	105,896	$	75,144	$	53,816	$	58,371	$	54,541	$	227,828	$	25,508	$	—	$	601,104
Special Mention	—		—		288		7,451		2,955		6,140		—		—		16,834
Substandard	—		1,533		1,301		475		1,306		1,822		—		—		6,437
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total CRE owner occupied risk ratings	$	105,896	$	76,677	$	55,405	$	66,297	$	58,802	$	235,790	$	25,508	$	—	$	624,375

Commercial real estate:
Multifamily risk ratings
Pass	$	77,646	$	118,725	$	113,882	$	70,112	$	67,457		$	123,518	$	19,007	$	—	$	590,347
Special Mention	9,441		—		—		603		24,687			772		9,259		—		44,762
Substandard	—		4,371		—		—		—		—	—		—		—		4,371
Doubtful/Loss	—		—		—		—		—			—		—		—		—
Total multifamily loans	$	87,087	$	123,096	$	113,882	$	70,715	$	92,144		$	124,290	$	28,266	$	—	$	639,480

	Term Loans Amortized Cost Basis by Origination Year – As of December 31, 2020
(in thousands)	2020		2019		2018		2017		2016		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
Commercial real estate:
Farmland risk ratings
Pass	$	17,640	$	25,003	$	19,148	$	12,834	$	7,377	$	17,129	$	39,411	$	—	$	138,542
Special Mention	—		2,567		—		1,271		227		3,107		2,258		—		9,430
Substandard	—		700		—		602		—		1,214		2,004		—		4,520
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total farmland loans	$	17,640	$	28,270	$	19,148	$	14,707	$	7,604	$	21,450	$	43,673	$	—	$	152,492

Consumer loans:
SFR 1-4 1st DT liens risk ratings
Pass	$	183,719	$	80,717	$	36,342	$	53,001	$	46,467	$	126,465	$	76	$	5,507	$	532,294
Special Mention	—		290		684		110		15		2,936		—		934		4,969
Substandard	—		—		1,174		929		935		5,763		—		528		9,329
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total SFR 1st DT liens	$	183,719	$	81,007	$	38,200	$	54,040	$	47,417	$	135,164	$	76	$	6,969	$	546,592

Consumer loans:
SFR HELOCs and Junior Liens
Pass	$	793	$	—	$	13	$	360	$	300	$	910	$	297,160	$	14,051	$	313,587
Special Mention	—		—		16		—		—		83		4,504		789		5,392
Substandard	—		—		—		—		—		39		6,698		1,768		8,505
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total SFR HELOCs and Junior Liens	$	793	$	—	$	29	$	360	$	300	$	1,032	$	308,362	$	16,608	$	327,484

Consumer loans:
Other risk ratings
Pass	$	25,876	$	29,539	$	14,170	$	4,238	$	1,020	$	967	$	986	$	—	$	76,796
Special Mention	43		208		147		74		24		65		90		—		651
Substandard	58		82		210		74		12		140		9		—		585
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total other consumer loans	$	25,977	$	29,829	$	14,527	$	4,386	$	1,056	$	1,172	$	1,085	$	—	$	78,032

Commercial and industrial loans:
Commercial and industrial risk ratings
Pass	$	356,701	$	48,838	$	20,463	$	13,151	$	5,185	$	9,490	$	65,938	$	1,085	$	520,851
Special Mention	—		102		698		195		20		178		207		11		1,411
Substandard	—		301		53		1,142		823		148		1,519		79		4,065
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total commercial and industrial loans	$	356,701	$	49,241	$	21,214	$	14,488	$	6,028	$	9,816	$	67,664	$	1,175	$	526,327

	Term Loans Amortized Cost Basis by Origination Year – As of December 31, 2020
(in thousands)	2020		2019		2018		2017		2016		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
Construction loans:
Construction risk ratings
Pass	69,133		41,786		92,191		51,082		20,868		2,876		—		$	—	$	277,936
Special Mention	—		—		—		346		—		1,780		—		—		2,126
Substandard	—		—		—		—		4,529		251		—		—		4,780
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total construction loans	$	69,133	$	41,786	$	92,191	$	51,428	$	25,397	$	4,907	$	—	$	—	$	284,842

Agriculture production loans:
Agriculture production risk ratings
Pass	$	977	$	2,079	$	1,590	$	1,838	$	663	$	708	$	36,051	$	—	$	43,906
Special Mention	—		—		203		—		49		—		—		—		252
Substandard	—		—		—		—		6		—		—		—		6
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total agriculture production loans	$	977	$	2,079	$	1,793	$	1,838	$	718	$	708	$	36,051	$	—	$	44,164

Leases:
Lease risk ratings
Pass	$	3,784	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	3,784
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total leases	$	3,784	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	3,784

Total loans outstanding:
Risk ratings
Pass	$	962,685	$	629,730	$	507,345	$	521,664	$	383,401	$	970,535	$	560,867	$	20,643	$	4,556,870
Special Mention	9,484		10,622		13,728		15,457		43,750		33,893		28,523		1,734		157,191
Substandard	58		6,987		4,187		3,806		9,758		11,665		10,230		2,375		49,066
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total loans outstanding	$	972,227	$	647,339	$	525,260	$	540,927	$	436,909	$	1,016,093	$	599,620	$	24,752	$	4,763,127

Analysis of Past Due Loans

The following table shows the ending balance of current and past due originated loans by loan category as of the date indicated:

	Analysis of Past Due Loans - As of June 30, 2021
(in thousands)	30-59 days		60-89 days		> 90 days		Total Past Due Loans		Current		Total
Commercial real estate:
CRE non-owner occupied	$	337	$	49	$	3,919	$	4,305	$	1,529,951	$	1,534,256
CRE owner occupied	28		62		412		502		659,446		659,948
Multifamily	—		—		—		—		828,101		828,101
Farmland	—		—		846		846		171,185		172,031
Total commercial real estate loans	365		111		5,177		5,653		3,188,683		3,194,336
Consumer:
SFR 1-4 1st DT liens	—		—		423		423		653,950		654,373
SFR HELOCs and junior liens	694		63		1,565		2,322		322,805		325,127
Other	13		—		52		65		71,044		71,109
Total consumer loans	707		63		2,040		2,810		1,047,799		1,050,609
Commercial and industrial	250		178		160		588		451,481		452,069
Construction	—		—		—		—		200,714		200,714
Agriculture production	241		—		—		241		41,726		41,967
Leases	—		—		—		—		5,199		5,199
Total	$	1,563	$	352	$	7,377	$	9,292	$	4,935,602	$	4,944,894

	Analysis of Past Due Loans - As of December 31, 2020
(in thousands)	30-59 days		60-89 days		> 90 days		Total Past Due Loans		Current		Total
Commercial real estate:
CRE non-owner occupied	$	127	$	173	$	239	$	539	$	1,535,016	$	1,535,555
CRE owner occupied	297				824		1,121		623,254		624,375
Multifamily	—		—		—		—		639,480		639,480
Farmland	899		—		70		969		151,523		152,492
Total commercial real estate loans	1,323		173		1,133		2,629		2,949,273		2,951,902
Consumer:
SFR 1-4 1st DT liens	37		—		960		997		545,595		546,592
SFR HELOCs and junior liens	418		212		1,671		2,301		325,183		327,484
Other	41		13		100		154		77,878		78,032
Total consumer loans	496		225		2,731		3,452		948,656		952,108
Commercial and industrial	155		426		105		686		525,641		526,327
Construction	—		—		—		—		284,842		284,842
Agriculture production	—		—		—		—		44,164		44,164
Leases	—		—		—		—		3,784		3,784
Total	$	1,974	$	824	$	3,969	$	6,767	$	4,756,360	$	4,763,127

Schedule of Non Accrual Loans

The following table shows the ending balance of non accrual loans by loan category as of the date indicated:

	Non Accrual Loans
	As of June 30, 2021						As of December 31, 2020
(in thousands)	Non accrual with no allowance for credit losses		Total non accrual		Past due 90 days or more and still accruing		Non accrual with no allowance for credit losses		Total non accrual		Past due 90 days or more and still accruing
Commercial real estate:
CRE non-owner occupied	$	8,515	$	8,515	$	—	$	3,110	$	3,110	$	—
CRE owner occupied	3,132		5,610		—		3,111		4,061		—
Multifamily	171		171		—		—		—		—
Farmland	1,346		1,346		—		1,468		1,538		—
Total commercial real estate loans	13,164		15,642		—		7,689		8,709		—
Consumer:
SFR 1-4 1st DT liens	4,185		4,328		—		4,950		5,093		—
SFR HELOCs and junior liens	3,677		4,604		—		4,480		6,148		—
Other	47		114		—		68		167		—
Total consumer loans	7,909		9,046		—		9,498		11,408		—
Commercial and industrial	86		3,615		—		652		2,183		—
Construction	4,402		4,402		—		4,546		4,546		—
Agriculture production	—		—		—		5		18		—
Leases	—		—		—		—		—		—
Sub-total	25,561		32,705		—		22,390		26,864		—
Less: Guaranteed loans	(608)		(865)		—		(687)		(811)
Total, net	$	24,953	$	31,840	$	—	$	21,703	$	26,053	$	—

Amortized Cost Basis of Collateral Dependent Loans, By Class of Loan

The following tables present the amortized cost basis of collateral dependent loans by class of loans as of the following periods:

	As of June 30, 2021
(in thousands)	Retail		Office		Warehouse		Other		Multifamily		Farmland		SFR -1st Deed		SFR -2nd Deed		Automobile/Truck		A/R and Inventory		Equipment		Total
Commercial real estate:
CRE non-owner occupied	$	2,853	$	416	$	—	$	3,918	$	—	$	—	$	1,328	$	—	$	—	$	—	$	—	$	8,515
CRE owner occupied	543		—		1,611		978		—		—		—		—		—		—		—		3,132
Multifamily	—		—		—		—		171		—		—		—		—		—		—		171
Farmland	—		—		—		—		—		1,346		—		—		—		—		—		1,346
Total commercial real estate loans	3,396		416		1,611		4,896		171		1,346		1,328		—		—		—		—		13,164
Consumer:
SFR 1-4 1st DT liens	—		—		—		—		—		—		4,185		—		—		—		—		4,185
SFR HELOCs and junior liens	—		—		—		—		—		—		1,753		1,924		—		—		—		3,677
Other	—		—		—		26		—		—		—		—		21		—		—		47
Total consumer loans	—		—		—		26		—		—		5,938		1,924		21		—		—		7,909
Commercial and industrial	—		—		—		—		—		—		—		—		—		43		43		86
Construction	—		—		—		—		—		—		4,402		—		—		—		—		4,402
Agriculture production	—		—		—		—		—		—		—		—		—		—		—		—
Leases	—		—		—		—		—		—		—		—		—		—		—		—
Total	$	3,396	$	416	$	1,611	$	4,922	$	171	$	1,346	$	11,668	$	1,924	$	21	$	43	$	43	$	25,561

	As of December 31, 2020
(in thousands)	Retail		Office		Warehouse		Other		Multifamily			Farmland		SFR -1st Deed		SFR -2nd Deed		Automobile/Truck		A/R and Inventory		Equipment		Total
Commercial real estate:
CRE non-owner occupied	$	2,445	$	435	$	—	$	—	$	—		$	—	$	—	$	—	$	—	$	—	$	—	$	2,880
CRE owner occupied	796		1,176		1,668		—		—			—		—		—		—		—		—		3,640
Multifamily	—		—		—		—		—			—		—		—		—		—		—		—
Farmland	—		—		—		—		—		—	1,538		—		—		—		—		—		1,538
Total commercial real estate loans	3,241		1,611		1,668		—		—			1,538		—		—		—		—		—		8,058
Consumer:
SFR 1-4 1st DT liens	—		—		—		—		—			—		5,068		—		—		—		—		5,068
SFR HELOCs and junior liens	—		—		—		—		—			—		1,855		2,839		—		—		—		4,694
Other	—		—		—		42		—			—		—		—		97		—		—		139
Total consumer loans	—		—		—		42		—			—		6,923		2,839		97		—		—		9,901
Commercial and industrial	—		—		—		292		—			—		—		—		—		1,173		75		1,540
Construction	—		—		—		—		—			—		4,546		—		—		—		—		4,546
Agriculture production	—		—		—		—		—			—		—		—		—		13		5		18
Leases	—		—		—		—		—			—		—		—		—		—		—		—
Total	$	3,241	$	1,611	$	1,668	$	334	$	—		$	1,538	$	11,469	$	2,839	$	97	$	1,186	$	80	$	24,063

Troubled Debt Restructurings

The following tables show certain information regarding TDRs that occurred during the periods indicated:

	TDR information for the three months ended June 30, 2021
(dollars in thousands)	Number	Pre-mod outstanding principal balance		Post-mod outstanding principal balance		Financial impact due to TDR taken as additional provision		Number that defaulted during the period	Recorded investment of TDRs that defaulted during the period		Financial impact due to the default of previous TDR taken as charge- offs or additional provisions
Commercial real estate:
CRE non-owner occupied	1	$	706	$	706	$	706	—	$	—	$	—
CRE owner occupied	—	—		—		—		—	—		—
Multifamily	—	—		—		—		—	—		—
Farmland	—	—		—		—		—	—		—
Total commercial real estate loans	1	706		706		706		—	—		—
Consumer:
SFR 1-4 1st DT liens	—	—		—		—		—	—		—
SFR HELOCs and junior liens	—	—		—		—		—	—		—
Other	—	—		—		—		—	—		—
Total consumer loans	—	—		—		—		—	—		—
Commercial and industrial	2	2,000		2,000		293		—	—		—
Construction	—	—		—		—		—	—		—
Agriculture production	—	—		—		—		—	—		—
Leases	—	—		—		—		—	—		—
Total	3	$	2,706	$	2,706	$	999	—	$	—	$	—

	TDR information for the three months ended June 30, 2020
(dollars in thousands)	Number	Pre-mod outstanding principal balance		Post-mod outstanding principal balance		Financial impact due to TDR taken as additional provision		Number that defaulted during the period	Recorded investment of TDRs that defaulted during the period		Financial impact due to the default of previous TDR taken as charge- offs or additional provisions
Commercial real estate:
CRE non-owner occupied	—	$	—	$	—	$	—	—	$	—	$	—
CRE owner occupied	—	—		—		—		—	—		—
Multifamily	—	—		—		—		—	—		—
Farmland	—	—		—		—		—	—		—
Total commercial real estate loans	—	—		—		—		—	—		—
Consumer:
SFR 1-4 1st DT liens	—	—		—		—		1	735		—
SFR HELOCs and junior liens	—	—		—		—		—	—		—
Other	—	—		—		—		—	—		—
Total consumer loans	—	—		—		—		1	735		—
Commercial and industrial	—	—		—		—		—	—		—
Construction	—	—		—		—		—	—		—
Agriculture production	—	—		—		—		—	—		—
Leases	—	—		—		—		—	—		—
Total	—	$	—	$	—	$	—	1	$	735	$	—

	TDR Information for the six months ended June 30, 2020
(dollars in thousands)	Number	Pre-mod outstanding principal balance		Post-mod outstanding principal balance		Financial impact due to TDR taken as additional provision		Number that defaulted during the period	Recorded investment of TDRs that defaulted during the period		Financial impact due to the default of previous TDR taken as charge- offs or additional provisions
Commercial real estate:
CRE non-owner occupied	1	$	257	$	251	$	—	—	$	—	$	—
CRE owner occupied	—	—		—		—		—	—		—
Multifamily	—	—		—		—		—	—		—
Farmland	2	230		298		—		—	—		—
Total commercial real estate loans	3	487		549		—		—	—		—
Consumer:
SFR 1-4 1st DT liens	—	—		—		—		2	1,037		—
SFR HELOCs and junior liens	2	172		169		—		—	—		—
Other	—	—		—		—		—	—		—
Total consumer loans	2	172		169		—		2	1,037		—
Commercial and industrial	1	21		20		21		—	—		—
Construction	—	—		—		—		—	—		—
Agriculture production	—	—		—		—		—	—		—
Leases	—	—		—		—		—	—		—
Total	6	$	680	$	738	$	21	2	$	1,037	$	—

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Leases (Tables)

6 Months Ended

Jun. 30, 2021

Leases [Abstract]

Components of Lease Expense

The following table presents the components of lease expense for the periods ended:

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2021		2020		2021		2020
Operating lease cost	$	1,267	$	1,291	$	2,526	$	2,586
Short-term lease cost	61		65		122		128
Variable lease cost	(1)		1		(3)		6
Sublease income	(11)		(35)		(24)		(69)
Total lease cost	$	1,316	$	1,322	$	2,621	$	2,651

Supplemental Cash Flow Information Related to Leases

The following table presents supplemental cash flow information related to leases for the periods ended:

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2021		2020		2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	1,226	$	1,243	$	2,430	$	2,480
ROUA obtained in exchange for operating lease liabilities	$	—	$	675	$	1,308	$	4,068

Weighted Average Operating Lease Term And Discount Rate

The following table presents the weighted average operating lease term and discount rate as of the period ended:

	June 30,
	2021		2020
Weighted-average remaining lease term (years)	9.8		10.3
Weighted-average discount rate	3.03	%	3.17	%

Future Expected Operating Lease Payments

At June 30, 2021, future expected operating lease payments are as follows:

(in thousands)
Periods ending December 31,
2021	$	2,252
2022	4,295
2023	3,624
2024	3,352
2025	2,891
Thereafter	14,925
	31,339
Discount for present value of expected cash flows	(4,632)
Lease liability at June 30, 2021	$	26,707

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Deposits (Tables)

6 Months Ended

Jun. 30, 2021

Deposits [Abstract]

Summary of Balances of Deposits

A summary of the balances of deposits follows:

(in thousands)	June 30, 2021		December 31, 2020
Noninterest-bearing demand	$	2,843,783	$	2,581,517
Interest-bearing demand	1,486,321		1,414,908
Savings	2,337,557		2,164,942
Time certificates, $250,000 or more	59,589		73,147
Other time certificates	264,803		271,420
Total deposits	$	6,992,053	$	6,505,934

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Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Summary of Bank's Commitments and Contingent Liabilities

The following table presents a summary of the Bank’s commitments and contingent liabilities:

(in thousands)	June 30, 2021		December 31, 2020
Financial instruments whose amounts represent risk:
Commitments to extend credit:
Commercial loans	$	426,278	$	462,422
Consumer loans	566,332		534,223
Real estate mortgage loans	274,339		202,306
Real estate construction loans	207,741		227,876
Standby letters of credit	14,112		15,056
Deposit account overdraft privilege	112,993		110,813

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Stock Options and Other Equity-Based Incentive Instruments (Tables)

6 Months Ended

Jun. 30, 2021

Share-based Payment Arrangement [Abstract]

Stock Option Activity

Stock option activity during the six months ended June 30, 2021 is summarized in the following table:

	Number of Shares	Weighted Average Exercise Price
Outstanding at December 31, 2020	128,500	$	17.72
Options granted	—	—
Options exercised	(1,675)	16.59
Options forfeited	—	—
Outstanding at June 30, 2021	126,825	$	17.74

Summary of Options Outstanding

The following table shows the number, weighted-average exercise price, intrinsic value, and weighted average remaining contractual life of options exercisable, options not yet exercisable and total options outstanding as of June 30, 2021:

	Currently Exercisable		Currently Not Exercisable		Total Outstanding
Number of options	126,825		—		126,825
Weighted average exercise price	$	17.74	$	—	$	17.74
Intrinsic value (in thousands)	$	3,763	$	—	$	3,763
Weighted average remaining contractual term (yrs.)	1.5		0.0		1.5

Restricted Stock Unit (RSU) Activity

Activity related to restricted stock unit awards during the six months ended June 30, 2021 is summarized in the following table:

	Service Condition Vesting RSUs	Market Plus Service Condition Vesting RSUs
Outstanding at December 31, 2020	99,809	81,615
RSUs granted	47,029	31,479
RSUs added through dividend and performance credits	1,090	—
RSUs released	(42,712)	—
RSUs forfeited/expired	(114)	(75)
Outstanding at June 30, 2021	105,102	113,019

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Non-interest Income and Expense (Tables)

6 Months Ended

Jun. 30, 2021

Other Income and Expenses [Abstract]

Components of Non-Interest Income

The following table summarizes the Company’s non-interest income for the periods indicated:

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2021		2020		2021		2020
ATM and interchange fees	$	6,558	$	5,165	$	12,419	$	10,276
Service charges on deposit accounts	3,462		3,046		6,731		7,092
Other service fees	914		734		1,785		1,492
Mortgage banking service fees	467		459		930		928
Change in value of mortgage servicing rights	(471)		(1,236)		(459)		(2,494)
Total service charges and fees	10,930		8,168		21,406		17,294
Increase in cash value of life insurance	745		710		1,418		1,430
Asset management and commission income	947		661		1,781		1,577
Gain on sale of loans	2,847		1,736		6,094		2,627
Lease brokerage income	249		127		359		320
Sale of customer checks	116		88		235		212
Gain on sale of investment securities	—		—		—		—
Gain (loss) on marketable equity securities	8		25		(45)		72
Other	115		142		819		(55)
Total other non-interest income	5,027		3,489		10,661		6,183
Total non-interest income	$	15,957	$	11,657	$	32,067	$	23,477

Components of Non Interest Expense

The components of non-interest expense were as follows:

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2021		2020		2021		2020
Base salaries, net of deferred loan origination costs	$	17,537	$	17,277	$	33,048	$	34,900
Incentive compensation	4,322		2,395		7,902		5,496
Benefits and other compensation costs	5,222		7,383		11,461		13,931
Total salaries and benefits expense	27,081		27,055		52,411		54,327
Occupancy	3,700		3,398		7,426		7,273
Data processing and software	3,201		3,657		6,403		7,024
Equipment	1,207		1,350		2,724		2,862
Intangible amortization	1,431		1,431		2,862		2,862
Advertising	734		531		1,114		1,196
ATM and POS network charges	1,551		1,210		2,797		2,583
Professional fees	1,046		741		1,640		1,444
Telecommunications	564		639		1,145		1,364
Regulatory assessments and insurance	618		360		1,230		455
Postage	124		283		322		573
Operational losses	212		184		421		405
Courier service	288		337		582		668
Gain on sale or acquisition of foreclosed assets	(15)		(16)		(66)		(57)
(Gain) loss on disposal of fixed assets	(426)		15		(426)		15
Other miscellaneous expense	2,855		4,375		5,204		7,306
Total other non-interest expense	17,090		18,495		33,378		35,973
Total non-interest expense	$	44,171	$	45,550	$	85,789	$	90,300

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Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2021

Earnings Per Share [Abstract]

Computation of Earnings Per Share

Potential common shares that may be issued by the Company relate to outstanding stock options and restricted stock units (RSUs), and are determined using the treasury stock method. Earnings per share have been computed based on the following:

	Three months ended June 30,
(in thousands)	2021		2020
Net income	$	28,362	$	7,430
Average number of common shares outstanding	29,719		29,754
Effect of dilutive stock options and restricted stock	185		129
Average number of common shares outstanding used to calculate diluted earnings per share	29,904		29,883
Options excluded from diluted earnings per share because of their antidilutive effect	—		—

	Six months ended June 30,
(in thousands)	2021		2020
Net income	$	62,011	$	23,551
Average number of common shares outstanding	29,723		30,074
Effect of dilutive stock options and restricted stock	181		129
Average number of common shares outstanding used to calculate diluted earnings per share	29,904		30,203
Options excluded from diluted earnings per share because of their antidilutive effect	—		—

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Comprehensive Income (Loss) (Tables)

6 Months Ended

Jun. 30, 2021

Equity [Abstract]

Components of Other Comprehensive Income (Loss) and Related Tax Effects

The components of other comprehensive income and related tax effects are as follows:

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2021		2020		2021		2020
Unrealized holding losses on available for sale securities before reclassifications	$	7,392	$	34,959	$	(4,945)	$	5,398
Amounts reclassified out of AOCI:
Realized gain on debt securities	—		—		—		—
Unrealized holding losses on available for sale securities after reclassifications	7,392		34,959		(4,945)		5,398
Tax effect	(2,186)		(10,334)		1,461		(1,595)
Unrealized holding losses on available for sale securities, net of tax	5,206		24,625		(3,484)		3,803
Change in unfunded status of the supplemental retirement plans before reclassifications	(49)		661		(98)		1,109
Amounts reclassified out of AOCI:
Amortization of prior service cost	(15)		(13)		(29)		(27)
Amortization of actuarial losses	64		478		127		956
Total amounts reclassified out of accumulated other comprehensive income	49		465		98		929
Change in unfunded status of the supplemental retirement plans after reclassifications	—		1,126		—		2,038
Tax effect	—		—		—		—
Change in unfunded status of the supplemental retirement plans, net of tax	—		1,126		—		2,038
Change in joint beneficiary agreement liability before reclassifications	—		—		(629)		—
Tax effect	—		—		—		—
Change in joint beneficiary agreement liability before reclassifications, net of tax	—		—		(629)		—
Total other comprehensive income (loss)	$	5,206	$	25,751	$	(4,113)	$	5,841

Components of Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive income, included in shareholders’ equity, are as follows:

(in thousands)	June 30, 2021		December 31, 2020
Net unrealized gain on available for sale securities	$	14,238	$	19,183
Tax effect	(4,210)		(5,671)
Unrealized holding gain on available for sale securities, net of tax	10,028		13,512
Unfunded status of the supplemental retirement plans	(1,294)		(1,294)
Tax effect	382		382
Unfunded status of the supplemental retirement plans, net of tax	(912)		(912)
Joint beneficiary agreement liability	(949)		(320)
Tax effect	—		—
Joint beneficiary agreement liability, net of tax	(949)		(320)
Accumulated other comprehensive income	$	8,167	$	12,280

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Fair Value Measurement (Tables)

6 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

Recorded Amount of Assets and Liabilities Measured at Fair Value on Recurring Basis

The table below presents the recorded amount of assets and liabilities measured at fair value on a recurring basis (in thousands):

Fair value at June 30, 2021	Total		Level 1		Level 2		Level 3
Marketable equity securities	$	2,979	$	2,979	$	—	$	—
Debt securities available for sale:
Obligations of U.S. government corporations and agencies	1,133,416		—		1,133,416		—
Obligations of states and political subdivisions	146,924		—		146,924		—
Corporate bonds	2,556		—		2,556		—
Asset backed securities	564,672		—		564,672		—
Loans held for sale	5,723		—		5,723		—
Mortgage servicing rights	5,603		—		—		5,603
Total assets measured at fair value	$	1,861,873	$	2,979	$	1,853,291	$	5,603

Fair value at December 31, 2020	Total		Level 1		Level 2		Level 3
Marketable equity securities	$	3,025	$	3,025	$	—	$	—
Debt securities available for sale:
Obligations of U.S. government corporations and agencies	812,374		—		812,374		—
Obligations of states and political subdivisions	129,095		—		129,095		—
Corporate bonds	2,544		—		2,544		—
Asset backed securities	470,251		—		470,251		—
Loans held for sale	6,268		—		6,268		—
Mortgage servicing rights	5,092		—		—		5,092
Total assets measured at fair value	$	1,428,649	$	3,025	$	1,420,532	$	5,092

Reconciliation of Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3) on Recurring Basis

The following table provides a reconciliation of assets and liabilities measured at fair value using significant unobservable inputs (Level 3) on a recurring basis during the time periods indicated. Had there been any transfer into or out of Level 3 during the time periods indicated, the amount included in the “Transfers into (out of) Level 3” column would represent the beginning balance of an item in the period (interim quarter) during which it was transferred (in thousands):

Three months ended June 30,	Beginning Balance		Transfers into (out of) Level 3	Change Included in Earnings		Issuances		Ending Balance
2021: Mortgage servicing rights	$	5,607	—	$	(471)	$	467	$	5,603
2020: Mortgage servicing rights	$	5,168	—	$	(1,236)	$	318	$	4,250

Six months ended June 30,	Beginning Balance		Transfers into (out of) Level 3	Change Included in Earnings		Issuances		Ending Balance
2021: Mortgage servicing rights	$	5,092	—	$	(459)	$	970	$	5,603
2020: Mortgage servicing rights	$	6,200	—	$	(2,494)	$	544	$	4,250

Quantitative Information about Recurring Level 3 Fair Value Measurements

The following table presents quantitative information about recurring Level 3 fair value measurements at June 30, 2021 and December 31, 2020:

As of June 30, 2021:	Fair Value (in thousands)		Valuation Technique	Unobservable Inputs	Range, Weighted Average
Mortgage Servicing Rights	$	5,603	Discounted cash flow	Constant prepayment rate	12% - 17%; 14.2%
				Discount rate	10% - 14%; 12%
As of December 31, 2020:
Mortgage Servicing Rights	$	5,092	Discounted cash flow	Constant prepayment rate	14% - 20.0%; 17.6%
				Discount rate	10% - 14%; 12%

Assets and Liabilities Measured at Fair Value on Nonrecurring Basis

The tables below present the recorded investment in assets and liabilities measured at fair value on a nonrecurring basis, as of the dates indicated (in thousands):

June 30, 2021	Total		Level 1		Level 2		Level 3		Total Gains (Losses)
Fair value:
Individually evaluated loans	$	4,912	—		—		$	4,912	$	(1,604)
Foreclosed assets	123		—		—		123		21
Total assets measured at fair value	$	5,035	$	—	$	—	$	5,035	$	(1,583)

December 31, 2020	Total		Level 1	Level 2	Level 3		Total Gains (Losses)
Fair value:
Individually evaluated loans	$	1,424	—	—	$	1,424	$	(1,489)
Foreclosed assets	979		—	—	979		155
Total assets measured at fair value	$	2,403	—	—	$	2,403	$	(1,334)

June 30, 2020	Total		Level 1	Level 2	Level 3		Total Losses
Fair value:
Individually evaluated loans	$	162	—	—	$	162	$	(16)

Quantitative Information about Level 3 Fair Value Measurements for Financial Instruments Measured at Fair Value on Nonrecurring Basis

The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis at June 30, 2021:

June 30, 2021	Fair Value (in thousands)		Valuation Technique	Unobservable Inputs	Range, Weighted Average
Individually evaluated loans	$	4,912	Sales comparison approach Income approach	Adjustment for differences between comparable sales Capitalization rate	Not meaningful N/A
Foreclosed assets (Residential real estate)	$	123	Sales comparison approach	Adjustment for differences between comparable sales	Not meaningful N/A

The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis at December 31, 2020:

December 31, 2020	Fair Value (in thousands)		Valuation Technique	Unobservable Inputs	Range, Weighted Average
Individually evaluated loans	$	1,424	Sales comparison approach Income approach	Adjustment for differences between comparable sales Capitalization rate	Not meaningful N/A
Foreclosed assets (Residential real estate)	$	979	Sales comparison approach	Adjustment for differences between comparable sales	Not meaningful N/A

Estimated Fair Values of Financial Instruments that are Reported at Amortized Cost in Consolidated Balance Sheets

	June 30, 2021				December 31, 2020
(in thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets:
Level 1 inputs:
Cash and due from banks	$	86,052	$	86,052	$	77,253	$	77,253
Cash at Federal Reserve and other banks	553,688		553,688		592,298		592,298
Level 2 inputs:
Securities held to maturity	235,778		247,019		284,563		298,726
Restricted equity securities	17,250		N/A		17,250		N/A
Level 3 inputs:
Loans, net	4,870,278		4,875,176		4,671,280		4,753,027
Financial liabilities:
Level 2 inputs:
Deposits	6,992,053		6,998,976		6,505,934		6,507,235
Other borrowings	40,559		40,559		26,914		26,914
Level 3 inputs:
Junior subordinated debt	57,852		57,795		57,635		56,632

(in thousands)	Contract Amount		Fair Value		Contract Amount		Fair Value
Off-balance sheet:
Level 3 inputs:
Commitments	$	1,474,690	$	14,747	$	1,426,827	$	14,268
Standby letters of credit	14,112		141		15,056		151
Overdraft privilege commitments	112,993		1,129		110,813		1,108

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Regulatory Matters (Tables)

6 Months Ended

Jun. 30, 2021

Banking Regulation, Global Systemically Important Bank (GSIB) Surcharge [Abstract]

Actual and Required Capital Ratios of Bank

	Actual				Required for Capital Adequacy Purposes				Required to be Considered Well Capitalized
As of June 30, 2021:	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(dollars in thousands)
Total Capital (to Risk Weighted Assets):
Consolidated	$	846,617	15.31	%	$	580,463	10.50	%	N/A		N/A
Tri Counties Bank	$	835,709	15.12	%	$	580,270	10.50	%	$	552,638	10.00	%
Tier 1 Capital (to Risk Weighted Assets):
Consolidated	$	777,241	14.06	%	$	469,899	8.50	%	N/A		N/A
Tri Counties Bank	$	766,377	13.87	%	$	469,743	8.50	%	$	442,111	8.00	%
Common equity Tier 1 Capital (to Risk Weighted Assets):
Consolidated	$	721,126	13.04	%	$	386,975	7.00	%	N/A		N/A
Tri Counties Bank	$	766,377	13.87	%	$	386,847	7.00	%	$	359,215	6.50	%
Tier 1 Capital (to Average Assets):
Consolidated	$	777,241	9.85	%	$	315,578	4.00	%	N/A		N/A
Tri Counties Bank	$	766,377	9.72	%	$	315,261	4.00	%	$	394,076	5.00	%

	Actual				Required for Capital Adequacy Purposes				Required to be Considered Well Capitalized
As of December 31, 2020:	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(dollars in thousands)
Total Capital (to Risk Weighted Assets):
Consolidated	$	793,433	15.22	%	$	547,352	10.50	%	N/A		N/A
Tri Counties Bank	$	780,320	14.97	%	$	547,156	10.50	%	$	521,101	10.00	%
Tier 1 Capital (to Risk Weighted Assets):
Consolidated	$	727,879	13.96	%	$	443,094	8.50	%	N/A		N/A
Tri Counties Bank	$	714,811	13.72	%	$	442,936	8.50	%	$	416,881	8.00	%
Common equity Tier 1 Capital (to Risk Weighted Assets):
Consolidated	$	671,975	12.89	%	$	364,901	7.00	%	N/A		N/A
Tri Counties Bank	$	714,811	13.72	%	$	364,771	7.00	%	$	338,716	6.50	%
Tier 1 Capital (to Average Assets):
Consolidated	$	727,879	9.93	%	$	293,138	4.00	%	N/A		N/A
Tri Counties Bank	$	714,811	9.76	%	$	292,949	4.00	%	$	366,186	5.00	%

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Summary of Significant Accounting Policies - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2021 USD ($) trust office county segment	Dec. 31, 2020 USD ($)	Jun. 30, 2020 USD ($)
Significant Accounting Policies [Line Items]
Number of subsidiary business trusts (in trusts) | trust	5
Number of loan production offices (in offices) | office	2
Company's investments in the trusts	$ 1,737,000
Number of business segment (in segments) | segment	1
Loans contractual past due	90 days
Held-to-maturity, allowance for credit loss	$ 0	$ 0	$ 0
Allowance for credit losses	$ 0	$ 0	$ 0
North Valley Bancorp
Significant Accounting Policies [Line Items]
Number of loan production offices (in offices) | office	3
Minimum
Significant Accounting Policies [Line Items]
Loan term	5 years
Amortization period	15 years
Maximum
Significant Accounting Policies [Line Items]
Loan term	10 years
Amortization period	30 years
California
Significant Accounting Policies [Line Items]
Number of counties (in counties) | county	28

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Investment Securities - Amortized Cost and Estimated Fair Values of Investments Securities (Detail) - USD ($)	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020
Debt Securities Available for Sale
Amortized Cost	$ 1,833,330,000	$ 1,395,081,000
Gross Unrealized Gains	20,860,000	25,225,000
Gross Unrealized Losses	(6,622,000)	(6,042,000)
Allowance for Credit Losses	0	0	$ 0
Estimated Fair Value	1,847,568,000	1,414,264,000
Debt Securities Held to Maturity
Amortized Cost	235,778,000	284,563,000
Gross Unrealized Gains	11,241,000	14,163,000
Gross Unrealized Losses	0	0
Allowance for Credit Losses	0	0	$ 0
Estimated Fair Value	247,019,000	298,726,000
Obligations of U.S. government agencies
Debt Securities Available for Sale
Amortized Cost	1,126,342,000	795,555,000
Gross Unrealized Gains	11,628,000	17,710,000
Gross Unrealized Losses	(4,554,000)	(891,000)
Allowance for Credit Losses	0	0
Estimated Fair Value	1,133,416,000	812,374,000
Debt Securities Held to Maturity
Amortized Cost	226,925,000	273,667,000
Gross Unrealized Gains	10,926,000	13,774,000
Gross Unrealized Losses	0	0
Allowance for Credit Losses	0	0
Estimated Fair Value	237,851,000	287,441,000
Obligations of states and political subdivisions
Debt Securities Available for Sale
Amortized Cost	141,168,000	123,347,000
Gross Unrealized Gains	6,208,000	5,748,000
Gross Unrealized Losses	(452,000)	0
Allowance for Credit Losses	0	0
Estimated Fair Value	146,924,000	129,095,000
Debt Securities Held to Maturity
Amortized Cost	8,853,000	10,896,000
Gross Unrealized Gains	315,000	389,000
Gross Unrealized Losses	0	0
Allowance for Credit Losses	0	0
Estimated Fair Value	9,168,000	11,285,000
Corporate bonds
Debt Securities Available for Sale
Amortized Cost	2,473,000	2,459,000
Gross Unrealized Gains	83,000	85,000
Gross Unrealized Losses	0	0
Allowance for Credit Losses	0	0
Estimated Fair Value	2,556,000	2,544,000
Asset backed securities
Debt Securities Available for Sale
Amortized Cost	563,347,000	473,720,000
Gross Unrealized Gains	2,941,000	1,682,000
Gross Unrealized Losses	(1,616,000)	(5,151,000)
Allowance for Credit Losses	0	0
Estimated Fair Value	$ 564,672,000	$ 470,251,000

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Investment Securities - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2021 USD ($) investmentSecurity	Dec. 31, 2020 USD ($)	Jun. 30, 2020 USD ($)
Investment Securities [Line Items]
Securities pledged as collateral	$ 456,446,000	$ 429,049,000
Residential real estate mortgage-backed securities	$ 1,104,406,000,000
Life of mortgage-backed securities	4 years 2 months 15 days
Impairment losses recognized	$ 0
Allowance for Credit Losses	0	0	$ 0
Obligations of U.S. government agencies
Investment Securities [Line Items]
Allowance for Credit Losses	$ 0	0
Number of available for sale securities in unrealized loss position (in investment securities) | investmentSecurity	32
Percentage of aggregate depreciation in unrealized losses	0.80%
Obligations of states and political subdivisions
Investment Securities [Line Items]
Allowance for Credit Losses	$ 0	0
Number of available for sale securities in unrealized loss position (in investment securities) | investmentSecurity	6
Percentage of aggregate depreciation in unrealized losses	1.83%
Asset backed securities
Investment Securities [Line Items]
Allowance for Credit Losses	$ 0	$ 0
Number of available for sale securities in unrealized loss position (in investment securities) | investmentSecurity	18
Percentage of aggregate depreciation in unrealized losses	0.63%

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Investment Securities - Amortized Cost and Estimated Fair Value of Debt Securities by Contractual Maturity (Detail) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Amortized Cost
Due in one year	$ 1,093
Due after one year through five years	181,624
Due after five years through ten years	337,145
Due after ten years	1,313,468
Amortized Cost	1,833,330	$ 1,395,081
Estimated Fair Value
Due in one year	1,117
Due after one year through five years	181,791
Due after five years through ten years	338,985
Due after ten years	1,325,675
Totals	1,847,568	1,414,264
Amortized Cost
Due in one year	0
Due after one year through five years	1,011
Due after five years through ten years	20,641
Due after ten years	214,126
Totals	235,778	284,563
Estimated Fair Value
Due in one year	0
Due after one year through five years	1,125
Due after five years through ten years	21,363
Due after ten years	224,531
Totals	$ 247,019	$ 298,726

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Investment Securities - Gross Unrealized Losses on Debt Securities (Detail) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Available for Sale, Less than 12 Months, Fair Value	$ 693,862	$ 212,087
Debt Securities, Available for Sale, Less than 12 Months, Unrealized Loss	(5,400)	(1,332)
Debt Securities, Available for Sale, 12 Months or more, Fair Value	152,895	297,020
Debt Securities, Available for Sale, 12 Months or more, Unrealized Loss	(1,222)	(4,710)
Debt Securities, Available for Sale, Fair Value	846,757	509,107
Debt Securities, Available-for-sale, Unrealized Loss	(6,622)	(6,042)
Obligations of U.S. government agencies
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Available for Sale, Less than 12 Months, Fair Value	566,137	160,543
Debt Securities, Available for Sale, Less than 12 Months, Unrealized Loss	(4,554)	(891)
Debt Securities, Available for Sale, 12 Months or more, Fair Value	0	0
Debt Securities, Available for Sale, 12 Months or more, Unrealized Loss	0	0
Debt Securities, Available for Sale, Fair Value	566,137	160,543
Debt Securities, Available-for-sale, Unrealized Loss	(4,554)	(891)
Obligations of states and political subdivisions
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Available for Sale, Less than 12 Months, Fair Value	24,207
Debt Securities, Available for Sale, Less than 12 Months, Unrealized Loss	(452)
Debt Securities, Available for Sale, 12 Months or more, Fair Value	0
Debt Securities, Available for Sale, 12 Months or more, Unrealized Loss	0
Debt Securities, Available for Sale, Fair Value	24,207
Debt Securities, Available-for-sale, Unrealized Loss	(452)
Asset backed securities
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Available for Sale, Less than 12 Months, Fair Value	103,518	51,544
Debt Securities, Available for Sale, Less than 12 Months, Unrealized Loss	(394)	(441)
Debt Securities, Available for Sale, 12 Months or more, Fair Value	152,895	297,020
Debt Securities, Available for Sale, 12 Months or more, Unrealized Loss	(1,222)	(4,710)
Debt Securities, Available for Sale, Fair Value	256,413	348,564
Debt Securities, Available-for-sale, Unrealized Loss	$ (1,616)	$ (5,151)

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Investment Securities - Amortized Cost of Debt Securities Held-to-Maturity (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items]
Amortized cost, held to maturity	$ 235,778	$ 284,563
AAA/AA/A
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items]
Amortized cost, held to maturity	235,778	284,563
BBB/BB/B
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items]
Amortized cost, held to maturity	0	0
Obligations of U.S. government agencies | AAA/AA/A
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items]
Amortized cost, held to maturity	226,925	273,667
Obligations of U.S. government agencies | BBB/BB/B
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items]
Amortized cost, held to maturity	0	0
Obligations of states and political subdivisions | AAA/AA/A
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items]
Amortized cost, held to maturity	8,853	10,896
Obligations of states and political subdivisions | BBB/BB/B
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items]
Amortized cost, held to maturity	$ 0	$ 0

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Loans - Summary of Loan Balances (Detail) - USD ($) $ in Thousands	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019
Loans and Leases Receivable Disclosure [Line Items]
Total	$ 4,944,894		$ 4,763,127
Total principal balance of loans owed, net of charge-offs	4,984,824		4,805,596
Unamortized net deferred loan fees	(19,843)		(16,984)
Discounts to principal balance of loans owed, net of charge-offs	(20,087)		(25,485)
Allowance for loan losses	(86,062)	$ (85,941)	(91,847)	$ (79,739)	$ (57,911)	$ (30,616)
Commercial real estate
Loans and Leases Receivable Disclosure [Line Items]
Total	3,194,336		2,951,902
Allowance for loan losses	(51,637)	(50,403)	(53,693)	(44,850)	(29,253)	(11,995)
Consumer
Loans and Leases Receivable Disclosure [Line Items]
Total	1,050,609		952,108
Allowance for loan losses	(23,950)	(24,604)	(25,148)	(23,165)	(19,592)	(10,084)
Commercial and industrial
Loans and Leases Receivable Disclosure [Line Items]
Total	452,069		526,327
Allowance for loan losses	(4,511)	(4,464)	(4,252)	(4,018)	(3,867)	(4,867)
Construction
Loans and Leases Receivable Disclosure [Line Items]
Total	200,714		284,842
Allowance for loan losses	(4,951)	(5,476)	(7,540)	(6,775)	(4,595)	(3,388)
Agriculture production
Loans and Leases Receivable Disclosure [Line Items]
Total	41,967		44,164
Allowance for loan losses	(1,007)	(988)	(1,209)	(919)	(593)	(261)
Leases
Loans and Leases Receivable Disclosure [Line Items]
Total	5,199		3,784
Allowance for loan losses	(6)	(6)	(5)	(12)	(11)	(21)
CRE non-owner occupied | Commercial real estate
Loans and Leases Receivable Disclosure [Line Items]
Total	1,534,256		1,535,555
Allowance for loan losses	(26,028)	(26,434)	(29,380)	(26,091)	(18,034)	(5,948)
CRE owner occupied | Commercial real estate
Loans and Leases Receivable Disclosure [Line Items]
Total	659,948		624,375
Allowance for loan losses	(10,463)	(9,874)	(10,861)	(8,710)	(5,366)	(2,027)
Multifamily | Commercial real estate
Loans and Leases Receivable Disclosure [Line Items]
Total	828,101		639,480
Allowance for loan losses	(13,196)	(12,371)	(11,472)	(8,581)	(5,140)	(3,352)
Farmland | Commercial real estate
Loans and Leases Receivable Disclosure [Line Items]
Total	172,031		152,492
Allowance for loan losses	(1,950)	(1,724)	(1,980)	(1,468)	(713)	(668)
SFR 1-4 1st DT liens | Consumer
Loans and Leases Receivable Disclosure [Line Items]
Total	654,373		546,592
SFR HELOCs and junior liens | Consumer
Loans and Leases Receivable Disclosure [Line Items]
Total	325,127		327,484
Allowance for loan losses	(10,701)	(11,079)	(11,771)	(12,108)	(11,196)	(6,183)
Other | Consumer
Loans and Leases Receivable Disclosure [Line Items]
Total	71,109		78,032
Allowance for loan losses	$ (2,620)	$ (2,860)	$ (3,260)	$ (3,042)	$ (2,746)	$ (1,595)

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Loans - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Loans and Leases Receivable Disclosure [Line Items]
Loans	$ 4,944,894		$ 4,944,894		$ 4,763,127
Loan balance, before allowance for credit loss and fee	4,984,824		4,984,824		4,805,596
Deferred loan fees	19,843		19,843		16,984
Loans, including fees	60,304	$ 58,409	120,740	$ 114,667
Commercial and industrial
Loans and Leases Receivable Disclosure [Line Items]
Loans	452,069		452,069		526,327
Payment Protection Program (PPP)
Loans and Leases Receivable Disclosure [Line Items]
Loan balance, before allowance for credit loss and fee	640,410		640,410
Payment Protection Program (PPP) | Commercial and industrial
Loans and Leases Receivable Disclosure [Line Items]
Loans	248,582		248,582
Deferred loan fees	25,299		25,299
Deferred loan costs	1,245		1,245
Deferred fee accretion	8,990		8,990		$ 7,212
Loans, including fees	$ 2,344	$ 2,356	$ 7,304	$ 2,356

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Allowance for Credit Losses - Summary of Activity in Allowance for Loan Losses (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	$ 85,941	$ 57,911	$ 91,847	$ 30,616	$ 30,616
Charge-offs	(387)		(613)	(1,001)	(1,755)
Recoveries	653	230	1,213	1,122	1,885
Provision (benefit)	(145)	22,089	(6,385)	30,089	42,188
Ending balance	86,062	79,739	86,062	79,739	91,847
Off-Balance Sheet, Credit Loss, Liability [Roll Forward]
Beginning balance	3,580	2,845	3,400	2,775	2,775
Charge-offs	0		0	0	0
Recoveries	0	0	0	0	0
Provision (benefit)	(115)	154	65	224	625
Ending balance	3,465	2,999	3,465	2,999	3,400
Credit Loss [Roll Forward]
Beginning balance	89,521	60,756	95,247	33,391	33,391
Charge-offs	(387)		(613)	(1,001)	(1,755)
Recoveries	653	230	1,213	1,122	1,885
Provision (benefit)	(260)	22,243	(6,320)	30,313	42,813
Ending balance	89,527	82,738	89,527	82,738	95,247
Impact of CECL Adoption
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance				18,913	18,913
Charge-offs		(491)
Off-Balance Sheet, Credit Loss, Liability [Roll Forward]
Beginning balance				0	0
Charge-offs		0
Credit Loss [Roll Forward]
Beginning balance				18,913	18,913
Charge-offs		(491)
Commercial real estate
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	50,403	29,253	53,693	11,995	11,995
Charge-offs	0	0	0	0	(182)
Recoveries	0	9	3	202	226
Provision (benefit)	1,234	15,588	(2,059)	20,805	29,806
Ending balance	51,637	44,850	51,637	44,850	53,693
Commercial real estate | Impact of CECL Adoption
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance				11,848	11,848
Consumer
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	24,604	19,592	25,148	10,084	10,084
Charge-offs	(86)	(277)	(279)	(407)	(799)
Recoveries	572	166	973	719	1,067
Provision (benefit)	(1,140)	3,684	(1,892)	4,485	6,512
Ending balance	23,950	23,165	23,950	23,165	25,148
Consumer | Impact of CECL Adoption
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance				8,284	8,284
Commercial and industrial
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	4,464	3,867	4,252	4,867	4,867
Charge-offs	(301)	(214)	(334)	(594)	(774)
Recoveries	79	55	215	181	568
Provision (benefit)	269	310	378	1,525	1,552
Ending balance	4,511	4,018	4,511	4,018	4,252
Commercial and industrial | Impact of CECL Adoption
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance				(1,961)	(1,961)
Construction
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	5,476	4,595	7,540	3,388	3,388
Charge-offs	0	0	0	0	0
Recoveries	0	0	0	0	0
Provision (benefit)	(525)	2,180	(2,589)	2,454	3,219
Ending balance	4,951	6,775	4,951	6,775	7,540
Construction | Impact of CECL Adoption
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance				933	933
Agriculture production
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	988	593	1,209	261	261
Charge-offs	0	0	0	0	0
Recoveries	2	0	22	20	24
Provision (benefit)	17	326	(224)	817	1,103
Ending balance	1,007	919	1,007	919	1,209
Agriculture production | Impact of CECL Adoption
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance				(179)	(179)
Leases
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	6	11	5	21	21
Charge-offs	0	0	0	0	0
Recoveries	0	0	0	0	0
Provision (benefit)	0	1	1	3	(4)
Ending balance	6	12	6	12	5
Leases | Impact of CECL Adoption
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance				(12)	(12)
CRE non-owner occupied | Commercial real estate
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	26,434	18,034	29,380	5,948	5,948
Charge-offs	0	0	0	0	0
Recoveries	0	5	2	193	198
Provision (benefit)	(406)	8,052	(3,354)	13,249	16,533
Ending balance	26,028	26,091	26,028	26,091	29,380
CRE non-owner occupied | Commercial real estate | Impact of CECL Adoption
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance				6,701	6,701
CRE owner occupied | Commercial real estate
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	9,874	5,366	10,861	2,027	2,027
Charge-offs	0	0	0	0	0
Recoveries	0	4	1	9	28
Provision (benefit)	589	3,340	(399)	4,393	6,525
Ending balance	10,463	8,710	10,463	8,710	10,861
CRE owner occupied | Commercial real estate | Impact of CECL Adoption
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance				2,281	2,281
Multifamily | Commercial real estate
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	12,371	5,140	11,472	3,352	3,352
Charge-offs	0	0	0	0	0
Recoveries	0	0	0	0	0
Provision (benefit)	825	3,441	1,724	2,948	5,839
Ending balance	13,196	8,581	13,196	8,581	11,472
Multifamily | Commercial real estate | Impact of CECL Adoption
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance				2,281	2,281
Farmland | Commercial real estate
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	1,724	713	1,980	668	668
Charge-offs	0	0	0	0	(182)
Recoveries	0	0	0	0	0
Provision (benefit)	226	755	(30)	215	909
Ending balance	1,950	1,468	1,950	1,468	1,980
Farmland | Commercial real estate | Impact of CECL Adoption
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance				585	585
SFR 1-4 1st DT liens | Consumer
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	10,665	5,650	10,117	2,306	2,306
Charge-offs	0	(11)	0	(11)	(13)
Recoveries	1	2	11	412	416
Provision (benefit)	(37)	2,374	501	2,633	4,733
Ending balance	10,629	8,015	10,629	8,015	10,117
SFR 1-4 1st DT liens | Consumer | Impact of CECL Adoption
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance				2,675	2,675
SFR HELOCs and junior liens | Consumer
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	11,079	11,196	11,771	6,183	6,183
Charge-offs	0	(23)	0	(23)	(116)
Recoveries	512	92	797	140	304
Provision (benefit)	(890)	843	(1,867)	1,170	762
Ending balance	10,701	12,108	10,701	12,108	11,771
SFR HELOCs and junior liens | Consumer | Impact of CECL Adoption
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance				4,638	4,638
Other | Consumer
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	2,860	2,746	3,260	1,595	1,595
Charge-offs	(86)	(243)	(279)	(373)	(670)
Recoveries	59	72	165	167	347
Provision (benefit)	(213)	467	(526)	682	1,017
Ending balance	$ 2,620	$ 3,042	$ 2,620	3,042	3,260
Other | Consumer | Impact of CECL Adoption
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance				$ 971	$ 971

XML

Allowance for Credit Losses - Additional Information (Detail) - USD ($) $ in Thousands			3 Months Ended		6 Months Ended
	Jan. 01, 2020	Dec. 31, 2019	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020
Loans and Leases Receivable Disclosure [Line Items]
Allowance for credit loss		$ 30,616	$ 86,062	$ 79,739	$ 86,062	$ 79,739	$ 85,941	$ 91,847	$ 57,911
Cumulative effect adjustment, decrease in retained earnings		906,570	966,780	885,686	966,780	885,686	942,539	925,114	866,426
Threshold for loan analysis			1,000		1,000
ASU 2016-13
Loans and Leases Receivable Disclosure [Line Items]
Allowance for credit loss	$ 18,913
Reclassification of financing receivable	$ 481
Retained Earnings
Loans and Leases Receivable Disclosure [Line Items]
Cumulative effect adjustment, decrease in retained earnings		367,794	427,575	354,645	427,575	354,645	$ 408,211	$ 381,999	$ 356,935
Impact of CECL Adoption
Loans and Leases Receivable Disclosure [Line Items]
Allowance for credit loss		18,913
Tax portion of cumulative effect adjustment		5,449
Cumulative effect adjustment, decrease in retained earnings		(12,983)
Impact of CECL Adoption | Retained Earnings
Loans and Leases Receivable Disclosure [Line Items]
Cumulative effect adjustment, decrease in retained earnings		$ (12,983)
Financial Asset Originated
Loans and Leases Receivable Disclosure [Line Items]
Interest lost on nonaccrual loans			524	428	1,060	859
Interest income on nonaccrual loans			$ 159	$ 39	$ 176	$ 86

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Allowance for Credit Losses - Schedule Credit Quality Indicators (Detail) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	$ 794,989	$ 972,227
Fiscal year before latest fiscal year	701,675	647,339
Two years before latest fiscal year	603,104	525,260
Three years before latest fiscal year	426,264	540,927
Four years before latest fiscal year	474,501	436,909
Prior	1,297,479	1,016,093
Revolving Loans Amortized Cost Basis	626,046	599,620
Revolving Loans Converted to Term	20,836	24,752
Total	4,944,894	4,763,127
Commercial real estate
Loans and Leases Receivable Disclosure [Line Items]
Total	3,194,336	2,951,902
Consumer
Loans and Leases Receivable Disclosure [Line Items]
Total	1,050,609	952,108
Commercial and industrial
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	202,893	356,701
Fiscal year before latest fiscal year	73,106	49,241
Two years before latest fiscal year	41,251	21,214
Three years before latest fiscal year	15,283	14,488
Four years before latest fiscal year	10,712	6,028
Prior	10,329	9,816
Revolving Loans Amortized Cost Basis	97,576	67,664
Revolving Loans Converted to Term	919	1,175
Total	452,069	526,327
Construction
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	17,725	69,133
Fiscal year before latest fiscal year	88,892	41,786
Two years before latest fiscal year	51,436	92,191
Three years before latest fiscal year	10,722	51,428
Four years before latest fiscal year	2,438	25,397
Prior	29,500	4,907
Revolving Loans Amortized Cost Basis	1	0
Revolving Loans Converted to Term	0	0
Total	200,714	284,842
Agriculture production
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	1,241	977
Fiscal year before latest fiscal year	1,012	2,079
Two years before latest fiscal year	1,767	1,793
Three years before latest fiscal year	1,370	1,838
Four years before latest fiscal year	1,229	718
Prior	1,080	708
Revolving Loans Amortized Cost Basis	34,268	36,051
Revolving Loans Converted to Term	0	0
Total	41,967	44,164
Leases
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	5,199	3,784
Fiscal year before latest fiscal year	0	0
Two years before latest fiscal year	0	0
Three years before latest fiscal year	0	0
Four years before latest fiscal year	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	5,199	3,784
CRE non-owner occupied | Commercial real estate
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	89,643	120,520
Fiscal year before latest fiscal year	120,974	215,354
Two years before latest fiscal year	212,284	168,871
Three years before latest fiscal year	150,413	262,668
Four years before latest fiscal year	250,819	197,443
Prior	626,970	481,764
Revolving Loans Amortized Cost Basis	83,153	88,935
Revolving Loans Converted to Term	0	0
Total	1,534,256	1,535,555
CRE owner occupied | Commercial real estate
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	89,094	105,896
Fiscal year before latest fiscal year	99,949	76,677
Two years before latest fiscal year	70,151	55,405
Three years before latest fiscal year	56,598	66,297
Four years before latest fiscal year	62,946	58,802
Prior	261,455	235,790
Revolving Loans Amortized Cost Basis	19,755	25,508
Revolving Loans Converted to Term	0	0
Total	659,948	624,375
Multifamily | Commercial real estate
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	176,116	87,087
Fiscal year before latest fiscal year	96,191	123,096
Two years before latest fiscal year	118,330	113,882
Three years before latest fiscal year	121,226	70,715
Four years before latest fiscal year	91,054	92,144
Prior	192,928	124,290
Revolving Loans Amortized Cost Basis	32,256	28,266
Revolving Loans Converted to Term	0	0
Total	828,101	639,480
Farmland | Commercial real estate
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	26,440	17,640
Fiscal year before latest fiscal year	18,526	28,270
Two years before latest fiscal year	24,943	19,148
Three years before latest fiscal year	18,051	14,707
Four years before latest fiscal year	10,184	7,604
Prior	25,903	21,450
Revolving Loans Amortized Cost Basis	47,984	43,673
Revolving Loans Converted to Term	0	0
Total	172,031	152,492
SFR 1-4 1st DT liens | Consumer
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	173,937	183,719
Fiscal year before latest fiscal year	182,911	81,007
Two years before latest fiscal year	59,963	38,200
Three years before latest fiscal year	41,807	54,040
Four years before latest fiscal year	42,199	47,417
Prior	147,397	135,164
Revolving Loans Amortized Cost Basis	0	76
Revolving Loans Converted to Term	6,159	6,969
Total	654,373	546,592
SFR HELOCs and junior liens | Consumer
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	624	793
Fiscal year before latest fiscal year	0	0
Two years before latest fiscal year	0	29
Three years before latest fiscal year	0	360
Four years before latest fiscal year	0	300
Prior	351	1,032
Revolving Loans Amortized Cost Basis	310,394	308,362
Revolving Loans Converted to Term	13,758	16,608
Total	325,127	327,484
Other | Consumer
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	12,077	25,977
Fiscal year before latest fiscal year	20,114	29,829
Two years before latest fiscal year	22,979	14,527
Three years before latest fiscal year	10,794	4,386
Four years before latest fiscal year	2,920	1,056
Prior	1,566	1,172
Revolving Loans Amortized Cost Basis	659	1,085
Revolving Loans Converted to Term	0	0
Total	71,109	78,032
Pass
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	794,989	962,685
Fiscal year before latest fiscal year	692,142	629,730
Two years before latest fiscal year	586,957	507,345
Three years before latest fiscal year	408,198	521,664
Four years before latest fiscal year	458,880	383,401
Prior	1,209,250	970,535
Revolving Loans Amortized Cost Basis	588,973	560,867
Revolving Loans Converted to Term	16,990	20,643
Total	4,756,379	4,556,870
Pass | Commercial and industrial
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	202,893	356,701
Fiscal year before latest fiscal year	73,077	48,838
Two years before latest fiscal year	40,966	20,463
Three years before latest fiscal year	14,631	13,151
Four years before latest fiscal year	9,585	5,185
Prior	9,484	9,490
Revolving Loans Amortized Cost Basis	94,260	65,938
Revolving Loans Converted to Term	840	1,085
Total	445,736	520,851
Pass | Construction
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	17,725	69,133
Fiscal year before latest fiscal year	88,892	41,786
Two years before latest fiscal year	51,436	92,191
Three years before latest fiscal year	10,722	51,082
Four years before latest fiscal year	2,092	20,868
Prior	23,539	2,876
Revolving Loans Amortized Cost Basis	1	0
Revolving Loans Converted to Term	0	0
Total	194,407	277,936
Pass | Agriculture production
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	1,241	977
Fiscal year before latest fiscal year	1,012	2,079
Two years before latest fiscal year	1,767	1,590
Three years before latest fiscal year	1,189	1,838
Four years before latest fiscal year	1,229	663
Prior	1,006	708
Revolving Loans Amortized Cost Basis	32,132	36,051
Revolving Loans Converted to Term	0	0
Total	39,576	43,906
Pass | Leases
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	5,199	3,784
Fiscal year before latest fiscal year	0	0
Two years before latest fiscal year	0	0
Three years before latest fiscal year	0	0
Four years before latest fiscal year	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	5,199	3,784
Pass | CRE non-owner occupied | Commercial real estate
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	89,643	120,520
Fiscal year before latest fiscal year	120,974	207,899
Two years before latest fiscal year	206,093	155,730
Three years before latest fiscal year	137,384	256,677
Four years before latest fiscal year	246,584	179,523
Prior	596,837	460,644
Revolving Loans Amortized Cost Basis	72,393	76,730
Revolving Loans Converted to Term	0	0
Total	1,469,908	1,457,723
Pass | CRE owner occupied | Commercial real estate
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	89,094	105,896
Fiscal year before latest fiscal year	99,949	75,144
Two years before latest fiscal year	68,668	53,816
Three years before latest fiscal year	55,048	58,371
Four years before latest fiscal year	55,684	54,541
Prior	248,033	227,828
Revolving Loans Amortized Cost Basis	19,755	25,508
Revolving Loans Converted to Term	0	0
Total	636,231	601,104
Pass | Multifamily | Commercial real estate
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	176,116	77,646
Fiscal year before latest fiscal year	86,806	118,725
Two years before latest fiscal year	113,996	113,882
Three years before latest fiscal year	121,226	70,112
Four years before latest fiscal year	91,054	67,457
Prior	168,088	123,518
Revolving Loans Amortized Cost Basis	24,533	19,007
Revolving Loans Converted to Term	0	0
Total	781,819	590,347
Pass | Farmland | Commercial real estate
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	26,440	17,640
Fiscal year before latest fiscal year	18,526	25,003
Two years before latest fiscal year	21,676	19,148
Three years before latest fiscal year	18,051	12,834
Four years before latest fiscal year	8,397	7,377
Prior	21,476	17,129
Revolving Loans Amortized Cost Basis	44,775	39,411
Revolving Loans Converted to Term	0	0
Total	159,341	138,542
Pass | SFR 1-4 1st DT liens | Consumer
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	173,937	183,719
Fiscal year before latest fiscal year	182,911	80,717
Two years before latest fiscal year	59,675	36,342
Three years before latest fiscal year	39,522	53,001
Four years before latest fiscal year	41,506	46,467
Prior	139,178	126,465
Revolving Loans Amortized Cost Basis	0	76
Revolving Loans Converted to Term	4,812	5,507
Total	641,541	532,294
Pass | SFR HELOCs and junior liens | Consumer
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	624	793
Fiscal year before latest fiscal year	0	0
Two years before latest fiscal year	0	13
Three years before latest fiscal year	0	360
Four years before latest fiscal year	0	300
Prior	242	910
Revolving Loans Amortized Cost Basis	300,548	297,160
Revolving Loans Converted to Term	11,338	14,051
Total	312,752	313,587
Pass | Other | Consumer
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	12,077	25,876
Fiscal year before latest fiscal year	19,995	29,539
Two years before latest fiscal year	22,680	14,170
Three years before latest fiscal year	10,425	4,238
Four years before latest fiscal year	2,749	1,020
Prior	1,367	967
Revolving Loans Amortized Cost Basis	576	986
Revolving Loans Converted to Term	0	0
Total	69,869	76,796
Special Mention
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	0	9,484
Fiscal year before latest fiscal year	9,466	10,622
Two years before latest fiscal year	6,809	13,728
Three years before latest fiscal year	14,029	15,457
Four years before latest fiscal year	12,641	43,750
Prior	58,267	33,893
Revolving Loans Amortized Cost Basis	27,161	28,523
Revolving Loans Converted to Term	1,861	1,734
Total	130,234	157,191
Special Mention | Commercial and industrial
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	0	0
Fiscal year before latest fiscal year	29	102
Two years before latest fiscal year	119	698
Three years before latest fiscal year	550	195
Four years before latest fiscal year	116	20
Prior	161	178
Revolving Loans Amortized Cost Basis	429	207
Revolving Loans Converted to Term	0	11
Total	1,404	1,411
Special Mention | Construction
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	0	0
Fiscal year before latest fiscal year	0	0
Two years before latest fiscal year	0	0
Three years before latest fiscal year	0	346
Four years before latest fiscal year	346	0
Prior	1,460	1,780
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	1,806	2,126
Special Mention | Agriculture production
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	0	0
Fiscal year before latest fiscal year	0	0
Two years before latest fiscal year	0	203
Three years before latest fiscal year	181	0
Four years before latest fiscal year	0	49
Prior	74	0
Revolving Loans Amortized Cost Basis	2,016	0
Revolving Loans Converted to Term	0	0
Total	2,271	252
Special Mention | Leases
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	0	0
Fiscal year before latest fiscal year	0	0
Two years before latest fiscal year	0	0
Three years before latest fiscal year	0	0
Four years before latest fiscal year	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	0	0
Special Mention | CRE non-owner occupied | Commercial real estate
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	0	0
Fiscal year before latest fiscal year	0	7,455
Two years before latest fiscal year	6,191	11,692
Three years before latest fiscal year	11,613	5,407
Four years before latest fiscal year	3,667	15,773
Prior	17,202	18,832
Revolving Loans Amortized Cost Basis	10,760	12,205
Revolving Loans Converted to Term	0	0
Total	49,433	71,364
Special Mention | CRE owner occupied | Commercial real estate
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	0	0
Fiscal year before latest fiscal year	0	0
Two years before latest fiscal year	0	288
Three years before latest fiscal year	288	7,451
Four years before latest fiscal year	6,797	2,955
Prior	8,447	6,140
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	15,532	16,834
Special Mention | Multifamily | Commercial real estate
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	0	9,441
Fiscal year before latest fiscal year	9,385	0
Two years before latest fiscal year	0	0
Three years before latest fiscal year	0	603
Four years before latest fiscal year	0	24,687
Prior	24,669	772
Revolving Loans Amortized Cost Basis	7,723	9,259
Revolving Loans Converted to Term	0	0
Total	41,777	44,762
Special Mention | Farmland | Commercial real estate
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	0	0
Fiscal year before latest fiscal year	0	2,567
Two years before latest fiscal year	0	0
Three years before latest fiscal year	0	1,271
Four years before latest fiscal year	1,197	227
Prior	3,316	3,107
Revolving Loans Amortized Cost Basis	1,775	2,258
Revolving Loans Converted to Term	0	0
Total	6,288	9,430
Special Mention | SFR 1-4 1st DT liens | Consumer
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	0	0
Fiscal year before latest fiscal year	0	290
Two years before latest fiscal year	288	684
Three years before latest fiscal year	1,154	110
Four years before latest fiscal year	420	15
Prior	2,779	2,936
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	977	934
Total	5,618	4,969
Special Mention | SFR HELOCs and junior liens | Consumer
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	0	0
Fiscal year before latest fiscal year	0	0
Two years before latest fiscal year	0	16
Three years before latest fiscal year	0	0
Four years before latest fiscal year	0	0
Prior	92	83
Revolving Loans Amortized Cost Basis	4,386	4,504
Revolving Loans Converted to Term	884	789
Total	5,362	5,392
Special Mention | Other | Consumer
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	0	43
Fiscal year before latest fiscal year	52	208
Two years before latest fiscal year	211	147
Three years before latest fiscal year	243	74
Four years before latest fiscal year	98	24
Prior	67	65
Revolving Loans Amortized Cost Basis	72	90
Revolving Loans Converted to Term	0	0
Total	743	651
Substandard
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	0	58
Fiscal year before latest fiscal year	67	6,987
Two years before latest fiscal year	9,338	4,187
Three years before latest fiscal year	4,037	3,806
Four years before latest fiscal year	2,980	9,758
Prior	29,962	11,665
Revolving Loans Amortized Cost Basis	9,912	10,230
Revolving Loans Converted to Term	1,985	2,375
Total	58,281	49,066
Substandard | Commercial and industrial
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	0	0
Fiscal year before latest fiscal year	0	301
Two years before latest fiscal year	166	53
Three years before latest fiscal year	102	1,142
Four years before latest fiscal year	1,011	823
Prior	684	148
Revolving Loans Amortized Cost Basis	2,887	1,519
Revolving Loans Converted to Term	79	79
Total	4,929	4,065
Substandard | Construction
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	0	0
Fiscal year before latest fiscal year	0	0
Two years before latest fiscal year	0	0
Three years before latest fiscal year	0	0
Four years before latest fiscal year	0	4,529
Prior	4,501	251
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	4,501	4,780
Substandard | Agriculture production
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	0	0
Fiscal year before latest fiscal year	0	0
Two years before latest fiscal year	0	0
Three years before latest fiscal year	0	0
Four years before latest fiscal year	0	6
Prior	0	0
Revolving Loans Amortized Cost Basis	120	0
Revolving Loans Converted to Term	0	0
Total	120	6
Substandard | Leases
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	0	0
Fiscal year before latest fiscal year	0	0
Two years before latest fiscal year	0	0
Three years before latest fiscal year	0	0
Four years before latest fiscal year	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	0	0
Substandard | CRE non-owner occupied | Commercial real estate
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	0	0
Fiscal year before latest fiscal year	0	0
Two years before latest fiscal year	0	1,449
Three years before latest fiscal year	1,416	584
Four years before latest fiscal year	568	2,147
Prior	12,931	2,288
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	14,915	6,468
Substandard | CRE owner occupied | Commercial real estate
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	0	0
Fiscal year before latest fiscal year	0	1,533
Two years before latest fiscal year	1,483	1,301
Three years before latest fiscal year	1,262	475
Four years before latest fiscal year	465	1,306
Prior	4,975	1,822
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	8,185	6,437
Substandard | Multifamily | Commercial real estate
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	0	0
Fiscal year before latest fiscal year	0	4,371
Two years before latest fiscal year	4,334	0
Three years before latest fiscal year	0	0
Four years before latest fiscal year	0	0
Prior	171	0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	4,505	4,371
Substandard | Farmland | Commercial real estate
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	0	0
Fiscal year before latest fiscal year	0	700
Two years before latest fiscal year	3,267	0
Three years before latest fiscal year	0	602
Four years before latest fiscal year	590	0
Prior	1,111	1,214
Revolving Loans Amortized Cost Basis	1,434	2,004
Revolving Loans Converted to Term	0	0
Total	6,402	4,520
Substandard | SFR 1-4 1st DT liens | Consumer
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	0	0
Fiscal year before latest fiscal year	0	0
Two years before latest fiscal year	0	1,174
Three years before latest fiscal year	1,131	929
Four years before latest fiscal year	273	935
Prior	5,440	5,763
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	370	528
Total	7,214	9,329
Substandard | SFR HELOCs and junior liens | Consumer
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	0	0
Fiscal year before latest fiscal year	0	0
Two years before latest fiscal year	0	0
Three years before latest fiscal year	0	0
Four years before latest fiscal year	0	0
Prior	17	39
Revolving Loans Amortized Cost Basis	5,460	6,698
Revolving Loans Converted to Term	1,536	1,768
Total	7,013	8,505
Substandard | Other | Consumer
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	0	58
Fiscal year before latest fiscal year	67	82
Two years before latest fiscal year	88	210
Three years before latest fiscal year	126	74
Four years before latest fiscal year	73	12
Prior	132	140
Revolving Loans Amortized Cost Basis	11	9
Revolving Loans Converted to Term	0	0
Total	497	585
Doubtful/Loss
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	0	0
Fiscal year before latest fiscal year	0	0
Two years before latest fiscal year	0	0
Three years before latest fiscal year	0	0
Four years before latest fiscal year	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	0	0
Doubtful/Loss | Commercial and industrial
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	0	0
Fiscal year before latest fiscal year	0	0
Two years before latest fiscal year	0	0
Three years before latest fiscal year	0	0
Four years before latest fiscal year	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	0	0
Doubtful/Loss | Construction
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	0	0
Fiscal year before latest fiscal year	0	0
Two years before latest fiscal year	0	0
Three years before latest fiscal year	0	0
Four years before latest fiscal year	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	0	0
Doubtful/Loss | Agriculture production
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	0	0
Fiscal year before latest fiscal year	0	0
Two years before latest fiscal year	0	0
Three years before latest fiscal year	0	0
Four years before latest fiscal year	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	0	0
Doubtful/Loss | Leases
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	0	0
Fiscal year before latest fiscal year	0	0
Two years before latest fiscal year	0	0
Three years before latest fiscal year	0	0
Four years before latest fiscal year	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	0	0
Doubtful/Loss | CRE non-owner occupied | Commercial real estate
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	0	0
Fiscal year before latest fiscal year	0	0
Two years before latest fiscal year	0	0
Three years before latest fiscal year	0	0
Four years before latest fiscal year	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	0	0
Doubtful/Loss | CRE owner occupied | Commercial real estate
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	0	0
Fiscal year before latest fiscal year	0	0
Two years before latest fiscal year	0	0
Three years before latest fiscal year	0	0
Four years before latest fiscal year	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	0	0
Doubtful/Loss | Multifamily | Commercial real estate
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	0	0
Fiscal year before latest fiscal year	0	0
Two years before latest fiscal year	0	0
Three years before latest fiscal year	0	0
Four years before latest fiscal year	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	0	0
Doubtful/Loss | Farmland | Commercial real estate
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	0	0
Fiscal year before latest fiscal year	0	0
Two years before latest fiscal year	0	0
Three years before latest fiscal year	0	0
Four years before latest fiscal year	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	0	0
Doubtful/Loss | SFR 1-4 1st DT liens | Consumer
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	0	0
Fiscal year before latest fiscal year	0	0
Two years before latest fiscal year	0	0
Three years before latest fiscal year	0	0
Four years before latest fiscal year	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	0	0
Doubtful/Loss | SFR HELOCs and junior liens | Consumer
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	0	0
Fiscal year before latest fiscal year	0	0
Two years before latest fiscal year	0	0
Three years before latest fiscal year	0	0
Four years before latest fiscal year	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	0	0
Doubtful/Loss | Other | Consumer
Loans and Leases Receivable Disclosure [Line Items]
Current fiscal year	0	0
Fiscal year before latest fiscal year	0	0
Two years before latest fiscal year	0	0
Three years before latest fiscal year	0	0
Four years before latest fiscal year	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	$ 0	$ 0

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Allowance for Credit Losses - Analysis of Past Due and Nonaccrual Loans (Detail) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Financing Receivable, Past Due [Line Items]
Total	$ 4,944,894	$ 4,763,127
Commercial real estate
Financing Receivable, Past Due [Line Items]
Total	3,194,336	2,951,902
Consumer
Financing Receivable, Past Due [Line Items]
Total	1,050,609	952,108
Commercial and industrial
Financing Receivable, Past Due [Line Items]
Total	452,069	526,327
Construction
Financing Receivable, Past Due [Line Items]
Total	200,714	284,842
Agriculture production
Financing Receivable, Past Due [Line Items]
Total	41,967	44,164
Leases
Financing Receivable, Past Due [Line Items]
Total	5,199	3,784
CRE non-owner occupied | Commercial real estate
Financing Receivable, Past Due [Line Items]
Total	1,534,256	1,535,555
CRE owner occupied | Commercial real estate
Financing Receivable, Past Due [Line Items]
Total	659,948	624,375
Multifamily | Commercial real estate
Financing Receivable, Past Due [Line Items]
Total	828,101	639,480
Farmland | Commercial real estate
Financing Receivable, Past Due [Line Items]
Total	172,031	152,492
SFR 1-4 1st DT liens | Consumer
Financing Receivable, Past Due [Line Items]
Total	654,373	546,592
SFR HELOCs and junior liens | Consumer
Financing Receivable, Past Due [Line Items]
Total	325,127	327,484
Other | Consumer
Financing Receivable, Past Due [Line Items]
Total	71,109	78,032
Financial Asset Originated
Financing Receivable, Past Due [Line Items]
Past due	9,292	6,767
Current	4,935,602	4,756,360
Total	4,944,894	4,763,127
Financial Asset Originated | Commercial real estate
Financing Receivable, Past Due [Line Items]
Past due	5,653	2,629
Current	3,188,683	2,949,273
Total	3,194,336	2,951,902
Financial Asset Originated | Consumer
Financing Receivable, Past Due [Line Items]
Past due	2,810	3,452
Current	1,047,799	948,656
Total	1,050,609	952,108
Financial Asset Originated | Commercial and industrial
Financing Receivable, Past Due [Line Items]
Past due	588	686
Current	451,481	525,641
Total	452,069	526,327
Financial Asset Originated | Construction
Financing Receivable, Past Due [Line Items]
Past due	0	0
Current	200,714	284,842
Total	200,714	284,842
Financial Asset Originated | Agriculture production
Financing Receivable, Past Due [Line Items]
Past due	241	0
Current	41,726	44,164
Total	41,967	44,164
Financial Asset Originated | Leases
Financing Receivable, Past Due [Line Items]
Past due	0	0
Current	5,199	3,784
Total	5,199	3,784
Financial Asset Originated | CRE non-owner occupied | Commercial real estate
Financing Receivable, Past Due [Line Items]
Past due	4,305	539
Current	1,529,951	1,535,016
Total	1,534,256	1,535,555
Financial Asset Originated | CRE owner occupied | Commercial real estate
Financing Receivable, Past Due [Line Items]
Past due	502	1,121
Current	659,446	623,254
Total	659,948	624,375
Financial Asset Originated | Multifamily | Commercial real estate
Financing Receivable, Past Due [Line Items]
Past due	0	0
Current	828,101	639,480
Total	828,101	639,480
Financial Asset Originated | Farmland | Commercial real estate
Financing Receivable, Past Due [Line Items]
Past due	846	969
Current	171,185	151,523
Total	172,031	152,492
Financial Asset Originated | SFR 1-4 1st DT liens | Consumer
Financing Receivable, Past Due [Line Items]
Past due	423	997
Current	653,950	545,595
Total	654,373	546,592
Financial Asset Originated | SFR HELOCs and junior liens | Consumer
Financing Receivable, Past Due [Line Items]
Past due	2,322	2,301
Current	322,805	325,183
Total	325,127	327,484
Financial Asset Originated | Other | Consumer
Financing Receivable, Past Due [Line Items]
Past due	65	154
Current	71,044	77,878
Total	71,109	78,032
Financial Asset, 30 to 59 Days Past Due | Financial Asset Originated
Financing Receivable, Past Due [Line Items]
Past due	1,563	1,974
Financial Asset, 30 to 59 Days Past Due | Financial Asset Originated | Commercial real estate
Financing Receivable, Past Due [Line Items]
Past due	365	1,323
Financial Asset, 30 to 59 Days Past Due | Financial Asset Originated | Consumer
Financing Receivable, Past Due [Line Items]
Past due	707	496
Financial Asset, 30 to 59 Days Past Due | Financial Asset Originated | Commercial and industrial
Financing Receivable, Past Due [Line Items]
Past due	250	155
Financial Asset, 30 to 59 Days Past Due | Financial Asset Originated | Construction
Financing Receivable, Past Due [Line Items]
Past due	0	0
Financial Asset, 30 to 59 Days Past Due | Financial Asset Originated | Agriculture production
Financing Receivable, Past Due [Line Items]
Past due	241	0
Financial Asset, 30 to 59 Days Past Due | Financial Asset Originated | Leases
Financing Receivable, Past Due [Line Items]
Past due	0	0
Financial Asset, 30 to 59 Days Past Due | Financial Asset Originated | CRE non-owner occupied | Commercial real estate
Financing Receivable, Past Due [Line Items]
Past due	337	127
Financial Asset, 30 to 59 Days Past Due | Financial Asset Originated | CRE owner occupied | Commercial real estate
Financing Receivable, Past Due [Line Items]
Past due	28	297
Financial Asset, 30 to 59 Days Past Due | Financial Asset Originated | Multifamily | Commercial real estate
Financing Receivable, Past Due [Line Items]
Past due	0	0
Financial Asset, 30 to 59 Days Past Due | Financial Asset Originated | Farmland | Commercial real estate
Financing Receivable, Past Due [Line Items]
Past due	0	899
Financial Asset, 30 to 59 Days Past Due | Financial Asset Originated | SFR 1-4 1st DT liens | Consumer
Financing Receivable, Past Due [Line Items]
Past due	0	37
Financial Asset, 30 to 59 Days Past Due | Financial Asset Originated | SFR HELOCs and junior liens | Consumer
Financing Receivable, Past Due [Line Items]
Past due	694	418
Financial Asset, 30 to 59 Days Past Due | Financial Asset Originated | Other | Consumer
Financing Receivable, Past Due [Line Items]
Past due	13	41
Financial Asset, 60 to 89 Days Past Due | Financial Asset Originated
Financing Receivable, Past Due [Line Items]
Past due	352	824
Financial Asset, 60 to 89 Days Past Due | Financial Asset Originated | Commercial real estate
Financing Receivable, Past Due [Line Items]
Past due	111	173
Financial Asset, 60 to 89 Days Past Due | Financial Asset Originated | Consumer
Financing Receivable, Past Due [Line Items]
Past due	63	225
Financial Asset, 60 to 89 Days Past Due | Financial Asset Originated | Commercial and industrial
Financing Receivable, Past Due [Line Items]
Past due	178	426
Financial Asset, 60 to 89 Days Past Due | Financial Asset Originated | Construction
Financing Receivable, Past Due [Line Items]
Past due	0	0
Financial Asset, 60 to 89 Days Past Due | Financial Asset Originated | Agriculture production
Financing Receivable, Past Due [Line Items]
Past due	0	0
Financial Asset, 60 to 89 Days Past Due | Financial Asset Originated | Leases
Financing Receivable, Past Due [Line Items]
Past due	0	0
Financial Asset, 60 to 89 Days Past Due | Financial Asset Originated | CRE non-owner occupied | Commercial real estate
Financing Receivable, Past Due [Line Items]
Past due	49	173
Financial Asset, 60 to 89 Days Past Due | Financial Asset Originated | CRE owner occupied | Commercial real estate
Financing Receivable, Past Due [Line Items]
Past due	62
Financial Asset, 60 to 89 Days Past Due | Financial Asset Originated | Multifamily | Commercial real estate
Financing Receivable, Past Due [Line Items]
Past due	0	0
Financial Asset, 60 to 89 Days Past Due | Financial Asset Originated | Farmland | Commercial real estate
Financing Receivable, Past Due [Line Items]
Past due	0	0
Financial Asset, 60 to 89 Days Past Due | Financial Asset Originated | SFR 1-4 1st DT liens | Consumer
Financing Receivable, Past Due [Line Items]
Past due	0	0
Financial Asset, 60 to 89 Days Past Due | Financial Asset Originated | SFR HELOCs and junior liens | Consumer
Financing Receivable, Past Due [Line Items]
Past due	63	212
Financial Asset, 60 to 89 Days Past Due | Financial Asset Originated | Other | Consumer
Financing Receivable, Past Due [Line Items]
Past due	0	13
Financial Asset, Equal to or Greater than 90 Days Past Due | Financial Asset Originated
Financing Receivable, Past Due [Line Items]
Past due	7,377	3,969
Financial Asset, Equal to or Greater than 90 Days Past Due | Financial Asset Originated | Commercial real estate
Financing Receivable, Past Due [Line Items]
Past due	5,177	1,133
Financial Asset, Equal to or Greater than 90 Days Past Due | Financial Asset Originated | Consumer
Financing Receivable, Past Due [Line Items]
Past due	2,040	2,731
Financial Asset, Equal to or Greater than 90 Days Past Due | Financial Asset Originated | Commercial and industrial
Financing Receivable, Past Due [Line Items]
Past due	160	105
Financial Asset, Equal to or Greater than 90 Days Past Due | Financial Asset Originated | Construction
Financing Receivable, Past Due [Line Items]
Past due	0	0
Financial Asset, Equal to or Greater than 90 Days Past Due | Financial Asset Originated | Agriculture production
Financing Receivable, Past Due [Line Items]
Past due	0	0
Financial Asset, Equal to or Greater than 90 Days Past Due | Financial Asset Originated | Leases
Financing Receivable, Past Due [Line Items]
Past due	0	0
Financial Asset, Equal to or Greater than 90 Days Past Due | Financial Asset Originated | CRE non-owner occupied | Commercial real estate
Financing Receivable, Past Due [Line Items]
Past due	3,919	239
Financial Asset, Equal to or Greater than 90 Days Past Due | Financial Asset Originated | CRE owner occupied | Commercial real estate
Financing Receivable, Past Due [Line Items]
Past due	412	824
Financial Asset, Equal to or Greater than 90 Days Past Due | Financial Asset Originated | Multifamily | Commercial real estate
Financing Receivable, Past Due [Line Items]
Past due	0	0
Financial Asset, Equal to or Greater than 90 Days Past Due | Financial Asset Originated | Farmland | Commercial real estate
Financing Receivable, Past Due [Line Items]
Past due	846	70
Financial Asset, Equal to or Greater than 90 Days Past Due | Financial Asset Originated | SFR 1-4 1st DT liens | Consumer
Financing Receivable, Past Due [Line Items]
Past due	423	960
Financial Asset, Equal to or Greater than 90 Days Past Due | Financial Asset Originated | SFR HELOCs and junior liens | Consumer
Financing Receivable, Past Due [Line Items]
Past due	1,565	1,671
Financial Asset, Equal to or Greater than 90 Days Past Due | Financial Asset Originated | Other | Consumer
Financing Receivable, Past Due [Line Items]
Past due	$ 52	$ 100

XML

Allowance for Credit Losses - Schedule of Non Accrual Loans (Detail) - Financial Asset Originated - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Financing Receivable, Past Due [Line Items]
Non accrual with no allowance for credit losses	$ 24,953	$ 21,703
Non accrual, no allowance including guaranteed loans	25,561	22,390
Non accrual including guaranteed loans	32,705	26,864
Total non accrual	31,840	26,053
Loans Insured or Guaranteed by US Government Authorities
Financing Receivable, Past Due [Line Items]
Non accrual with no allowance for credit losses	608	687
Total non accrual	865	811
Financial Asset, Equal to or Greater than 90 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due 90 days or more and still accruing	0	0
Commercial real estate
Financing Receivable, Past Due [Line Items]
Non accrual with no allowance for credit losses	13,164	7,689
Total non accrual	15,642	8,709
Commercial real estate | Financial Asset, Equal to or Greater than 90 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due 90 days or more and still accruing	0	0
Consumer
Financing Receivable, Past Due [Line Items]
Non accrual with no allowance for credit losses	7,909	9,498
Total non accrual	9,046	11,408
Consumer | Financial Asset, Equal to or Greater than 90 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due 90 days or more and still accruing	0	0
Commercial and industrial
Financing Receivable, Past Due [Line Items]
Non accrual with no allowance for credit losses	86	652
Total non accrual	3,615	2,183
Commercial and industrial | Financial Asset, Equal to or Greater than 90 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due 90 days or more and still accruing	0	0
Construction
Financing Receivable, Past Due [Line Items]
Non accrual with no allowance for credit losses	4,402	4,546
Total non accrual	4,402	4,546
Construction | Financial Asset, Equal to or Greater than 90 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due 90 days or more and still accruing	0	0
Agriculture production
Financing Receivable, Past Due [Line Items]
Non accrual with no allowance for credit losses	0	5
Total non accrual	0	18
Agriculture production | Financial Asset, Equal to or Greater than 90 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due 90 days or more and still accruing	0	0
Leases
Financing Receivable, Past Due [Line Items]
Non accrual with no allowance for credit losses	0	0
Total non accrual	0	0
Leases | Financial Asset, Equal to or Greater than 90 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due 90 days or more and still accruing	0	0
CRE non-owner occupied | Commercial real estate
Financing Receivable, Past Due [Line Items]
Non accrual with no allowance for credit losses	8,515	3,110
Total non accrual	8,515	3,110
CRE non-owner occupied | Commercial real estate | Financial Asset, Equal to or Greater than 90 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due 90 days or more and still accruing	0	0
CRE owner occupied | Commercial real estate
Financing Receivable, Past Due [Line Items]
Non accrual with no allowance for credit losses	3,132	3,111
Total non accrual	5,610	4,061
CRE owner occupied | Commercial real estate | Financial Asset, Equal to or Greater than 90 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due 90 days or more and still accruing	0	0
Multifamily | Commercial real estate
Financing Receivable, Past Due [Line Items]
Non accrual with no allowance for credit losses	171	0
Total non accrual	171	0
Multifamily | Commercial real estate | Financial Asset, Equal to or Greater than 90 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due 90 days or more and still accruing	0	0
Farmland | Commercial real estate
Financing Receivable, Past Due [Line Items]
Non accrual with no allowance for credit losses	1,346	1,468
Total non accrual	1,346	1,538
Farmland | Commercial real estate | Financial Asset, Equal to or Greater than 90 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due 90 days or more and still accruing	0	0
SFR 1-4 1st DT liens | Consumer
Financing Receivable, Past Due [Line Items]
Non accrual with no allowance for credit losses	4,185	4,950
Total non accrual	4,328	5,093
SFR 1-4 1st DT liens | Consumer | Financial Asset, Equal to or Greater than 90 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due 90 days or more and still accruing	0	0
SFR HELOCs and junior liens | Consumer
Financing Receivable, Past Due [Line Items]
Non accrual with no allowance for credit losses	3,677	4,480
Total non accrual	4,604	6,148
SFR HELOCs and junior liens | Consumer | Financial Asset, Equal to or Greater than 90 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due 90 days or more and still accruing	0	0
Other | Consumer
Financing Receivable, Past Due [Line Items]
Non accrual with no allowance for credit losses	47	68
Total non accrual	114	167
Other | Consumer | Financial Asset, Equal to or Greater than 90 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due 90 days or more and still accruing	$ 0	$ 0

XML

Allowance for Credit Losses - Amortized Cost Basis of Collateral Dependent Loans, By Class of Loan (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	$ 4,944,894	$ 4,763,127
Retail
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	3,396	3,241
Office
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	416	1,611
Warehouse
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	1,611	1,668
Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	4,922	334
Multifamily
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	171	0
Farmland
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	1,346	1,538
SFR -1st Deed
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	11,668	11,469
SFR -2nd Deed
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	1,924	2,839
Automobile/Truck
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	21	97
A/R and Inventory
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	43	1,186
Equipment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	43	80
Total
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	25,561	24,063
Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	3,194,336	2,951,902
Commercial real estate | Retail
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	3,396	3,241
Commercial real estate | Office
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	416	1,611
Commercial real estate | Warehouse
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	1,611	1,668
Commercial real estate | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	4,896	0
Commercial real estate | Multifamily
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	171	0
Commercial real estate | Farmland
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	1,346	1,538
Commercial real estate | SFR -1st Deed
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	1,328	0
Commercial real estate | SFR -2nd Deed
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Commercial real estate | Automobile/Truck
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Commercial real estate | A/R and Inventory
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Commercial real estate | Equipment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Commercial real estate | Total
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	13,164	8,058
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	1,050,609	952,108
Consumer | Retail
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Consumer | Office
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Consumer | Warehouse
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Consumer | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	26	42
Consumer | Multifamily
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Consumer | Farmland
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Consumer | SFR -1st Deed
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	5,938	6,923
Consumer | SFR -2nd Deed
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	1,924	2,839
Consumer | Automobile/Truck
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	21	97
Consumer | A/R and Inventory
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Consumer | Equipment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Consumer | Total
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	7,909	9,901
Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	452,069	526,327
Commercial and industrial | Retail
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Commercial and industrial | Office
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Commercial and industrial | Warehouse
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Commercial and industrial | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	292
Commercial and industrial | Multifamily
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Commercial and industrial | Farmland
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Commercial and industrial | SFR -1st Deed
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Commercial and industrial | SFR -2nd Deed
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Commercial and industrial | Automobile/Truck
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Commercial and industrial | A/R and Inventory
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	43	1,173
Commercial and industrial | Equipment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	43	75
Commercial and industrial | Total
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	86	1,540
Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	200,714	284,842
Construction | Retail
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Construction | Office
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Construction | Warehouse
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Construction | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Construction | Multifamily
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Construction | Farmland
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Construction | SFR -1st Deed
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	4,402	4,546
Construction | SFR -2nd Deed
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Construction | Automobile/Truck
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Construction | A/R and Inventory
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Construction | Equipment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Construction | Total
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	4,402	4,546
Agriculture production
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	41,967	44,164
Agriculture production | Retail
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Agriculture production | Office
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Agriculture production | Warehouse
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Agriculture production | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Agriculture production | Multifamily
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Agriculture production | Farmland
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Agriculture production | SFR -1st Deed
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Agriculture production | SFR -2nd Deed
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Agriculture production | Automobile/Truck
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Agriculture production | A/R and Inventory
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	13
Agriculture production | Equipment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	5
Agriculture production | Total
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	18
Leases
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	5,199	3,784
Leases | Retail
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Leases | Office
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Leases | Warehouse
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Leases | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Leases | Multifamily
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Leases | Farmland
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Leases | SFR -1st Deed
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Leases | SFR -2nd Deed
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Leases | Automobile/Truck
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Leases | A/R and Inventory
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Leases | Equipment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Leases | Total
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
CRE non-owner occupied | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	1,534,256	1,535,555
CRE non-owner occupied | Commercial real estate | Retail
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	2,853	2,445
CRE non-owner occupied | Commercial real estate | Office
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	416	435
CRE non-owner occupied | Commercial real estate | Warehouse
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
CRE non-owner occupied | Commercial real estate | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	3,918	0
CRE non-owner occupied | Commercial real estate | Multifamily
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
CRE non-owner occupied | Commercial real estate | Farmland
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
CRE non-owner occupied | Commercial real estate | SFR -1st Deed
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	1,328	0
CRE non-owner occupied | Commercial real estate | SFR -2nd Deed
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
CRE non-owner occupied | Commercial real estate | Automobile/Truck
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
CRE non-owner occupied | Commercial real estate | A/R and Inventory
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
CRE non-owner occupied | Commercial real estate | Equipment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
CRE non-owner occupied | Commercial real estate | Total
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	8,515	2,880
CRE owner occupied | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	659,948	624,375
CRE owner occupied | Commercial real estate | Retail
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	543	796
CRE owner occupied | Commercial real estate | Office
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	1,176
CRE owner occupied | Commercial real estate | Warehouse
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	1,611	1,668
CRE owner occupied | Commercial real estate | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	978	0
CRE owner occupied | Commercial real estate | Multifamily
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
CRE owner occupied | Commercial real estate | Farmland
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
CRE owner occupied | Commercial real estate | SFR -1st Deed
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
CRE owner occupied | Commercial real estate | SFR -2nd Deed
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
CRE owner occupied | Commercial real estate | Automobile/Truck
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
CRE owner occupied | Commercial real estate | A/R and Inventory
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
CRE owner occupied | Commercial real estate | Equipment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
CRE owner occupied | Commercial real estate | Total
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	3,132	3,640
Multifamily | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	828,101	639,480
Multifamily | Commercial real estate | Retail
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Multifamily | Commercial real estate | Office
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Multifamily | Commercial real estate | Warehouse
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Multifamily | Commercial real estate | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Multifamily | Commercial real estate | Multifamily
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	171	0
Multifamily | Commercial real estate | Farmland
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Multifamily | Commercial real estate | SFR -1st Deed
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Multifamily | Commercial real estate | SFR -2nd Deed
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Multifamily | Commercial real estate | Automobile/Truck
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Multifamily | Commercial real estate | A/R and Inventory
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Multifamily | Commercial real estate | Equipment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Multifamily | Commercial real estate | Total
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	171	0
Farmland | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	172,031	152,492
Farmland | Commercial real estate | Retail
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Farmland | Commercial real estate | Office
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Farmland | Commercial real estate | Warehouse
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Farmland | Commercial real estate | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Farmland | Commercial real estate | Multifamily
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Farmland | Commercial real estate | Farmland
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	1,346	1,538
Farmland | Commercial real estate | SFR -1st Deed
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Farmland | Commercial real estate | SFR -2nd Deed
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Farmland | Commercial real estate | Automobile/Truck
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Farmland | Commercial real estate | A/R and Inventory
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Farmland | Commercial real estate | Equipment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Farmland | Commercial real estate | Total
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	1,346	1,538
SFR 1-4 1st DT liens | Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	654,373	546,592
SFR 1-4 1st DT liens | Consumer | Retail
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
SFR 1-4 1st DT liens | Consumer | Office
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
SFR 1-4 1st DT liens | Consumer | Warehouse
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
SFR 1-4 1st DT liens | Consumer | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
SFR 1-4 1st DT liens | Consumer | Multifamily
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
SFR 1-4 1st DT liens | Consumer | Farmland
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
SFR 1-4 1st DT liens | Consumer | SFR -1st Deed
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	4,185	5,068
SFR 1-4 1st DT liens | Consumer | SFR -2nd Deed
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
SFR 1-4 1st DT liens | Consumer | Automobile/Truck
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
SFR 1-4 1st DT liens | Consumer | A/R and Inventory
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
SFR 1-4 1st DT liens | Consumer | Equipment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
SFR 1-4 1st DT liens | Consumer | Total
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	4,185	5,068
SFR HELOCs and junior liens | Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	325,127	327,484
SFR HELOCs and junior liens | Consumer | Retail
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
SFR HELOCs and junior liens | Consumer | Office
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
SFR HELOCs and junior liens | Consumer | Warehouse
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
SFR HELOCs and junior liens | Consumer | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
SFR HELOCs and junior liens | Consumer | Multifamily
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
SFR HELOCs and junior liens | Consumer | Farmland
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
SFR HELOCs and junior liens | Consumer | SFR -1st Deed
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	1,753	1,855
SFR HELOCs and junior liens | Consumer | SFR -2nd Deed
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	1,924	2,839
SFR HELOCs and junior liens | Consumer | Automobile/Truck
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
SFR HELOCs and junior liens | Consumer | A/R and Inventory
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
SFR HELOCs and junior liens | Consumer | Equipment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
SFR HELOCs and junior liens | Consumer | Total
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	3,677	4,694
Other | Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	71,109	78,032
Other | Consumer | Retail
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Other | Consumer | Office
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Other | Consumer | Warehouse
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Other | Consumer | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	26	42
Other | Consumer | Multifamily
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Other | Consumer | Farmland
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Other | Consumer | SFR -1st Deed
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Other | Consumer | SFR -2nd Deed
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Other | Consumer | Automobile/Truck
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	21	97
Other | Consumer | A/R and Inventory
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Other | Consumer | Equipment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Other | Consumer | Total
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	$ 47	$ 139

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Allowance for Credit Losses - Troubled Debt Restructurings (Detail) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021 USD ($) investmentSecurity	Jun. 30, 2020 USD ($) investmentSecurity	Jun. 30, 2021 USD ($) investmentSecurity	Jun. 30, 2020 USD ($) investmentSecurity
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number (in investment securities) | investmentSecurity	3,000	0	8	6,000
Pre-mod outstanding principal balance	$ 2,706	$ 0	$ 4,079	$ 680
Post-mod outstanding principal balance	2,706	0	4,070	738
Financial impact due to TDR taken as additional provision	$ 999	$ 0	$ 2,365	$ 21
Number that defaulted during the period (in investment securities) | investmentSecurity	0	1,000	4	2,000
Recorded investment of TDRs that defaulted during the period	$ 0	$ 735	$ 1,094	$ 1,037
Financial impact due to the default of previous TDR taken as charge- offs or additional provisions	$ 0	$ 0	$ 0	$ 0
Commercial real estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number (in investment securities) | investmentSecurity	1,000	0	3	3,000
Pre-mod outstanding principal balance	$ 706	$ 0	$ 1,763	$ 487
Post-mod outstanding principal balance	706	0	1,760	549
Financial impact due to TDR taken as additional provision	$ 706	$ 0	$ 1,762	$ 0
Number that defaulted during the period (in investment securities) | investmentSecurity	0	0	3	0
Recorded investment of TDRs that defaulted during the period	$ 0	$ 0	$ 847	$ 0
Financial impact due to the default of previous TDR taken as charge- offs or additional provisions	$ 0	$ 0	$ 0	$ 0
Consumer
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number (in investment securities) | investmentSecurity	0	0	0	2,000
Pre-mod outstanding principal balance	$ 0	$ 0	$ 0	$ 172
Post-mod outstanding principal balance	0	0	0	169
Financial impact due to TDR taken as additional provision	$ 0	$ 0	$ 0	$ 0
Number that defaulted during the period (in investment securities) | investmentSecurity	0	1,000	0	2,000
Recorded investment of TDRs that defaulted during the period	$ 0	$ 735	$ 0	$ 1,037
Financial impact due to the default of previous TDR taken as charge- offs or additional provisions	$ 0	$ 0	$ 0	$ 0
Commercial and industrial
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number (in investment securities) | investmentSecurity	2,000	0	5	1,000
Pre-mod outstanding principal balance	$ 2,000	$ 0	$ 2,316	$ 21
Post-mod outstanding principal balance	2,000	0	2,310	20
Financial impact due to TDR taken as additional provision	$ 293	$ 0	$ 603	$ 21
Number that defaulted during the period (in investment securities) | investmentSecurity	0	0	1	0
Recorded investment of TDRs that defaulted during the period	$ 0	$ 0	$ 247	$ 0
Financial impact due to the default of previous TDR taken as charge- offs or additional provisions	$ 0	$ 0	$ 0	$ 0
Construction
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number (in investment securities) | investmentSecurity	0	0	0	0
Pre-mod outstanding principal balance	$ 0	$ 0	$ 0	$ 0
Post-mod outstanding principal balance	0	0	0	0
Financial impact due to TDR taken as additional provision	$ 0	$ 0	$ 0	$ 0
Number that defaulted during the period (in investment securities) | investmentSecurity	0	0	0	0
Recorded investment of TDRs that defaulted during the period	$ 0	$ 0	$ 0	$ 0
Financial impact due to the default of previous TDR taken as charge- offs or additional provisions	$ 0	$ 0	$ 0	$ 0
Agriculture production
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number (in investment securities) | investmentSecurity	0	0	0	0
Pre-mod outstanding principal balance	$ 0	$ 0	$ 0	$ 0
Post-mod outstanding principal balance	0	0	0	0
Financial impact due to TDR taken as additional provision	$ 0	$ 0	$ 0	$ 0
Number that defaulted during the period (in investment securities) | investmentSecurity	0	0	0	0
Recorded investment of TDRs that defaulted during the period	$ 0	$ 0	$ 0	$ 0
Financial impact due to the default of previous TDR taken as charge- offs or additional provisions	$ 0	$ 0	$ 0	$ 0
Leases
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number (in investment securities) | investmentSecurity	0	0	0	0
Pre-mod outstanding principal balance	$ 0	$ 0	$ 0	$ 0
Post-mod outstanding principal balance	0	0	0	0
Financial impact due to TDR taken as additional provision	$ 0	$ 0	$ 0	$ 0
Number that defaulted during the period (in investment securities) | investmentSecurity	0	0	0	0
Recorded investment of TDRs that defaulted during the period	$ 0	$ 0	$ 0	$ 0
Financial impact due to the default of previous TDR taken as charge- offs or additional provisions	$ 0	$ 0	$ 0	$ 0
CRE non-owner occupied | Commercial real estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number (in investment securities) | investmentSecurity	1,000	0	2	1,000
Pre-mod outstanding principal balance	$ 706	$ 0	$ 1,023	$ 257
Post-mod outstanding principal balance	706	0	1,018	251
Financial impact due to TDR taken as additional provision	$ 706	$ 0	$ 1,020	$ 0
Number that defaulted during the period (in investment securities) | investmentSecurity	0	0	0	0
Recorded investment of TDRs that defaulted during the period	$ 0	$ 0	$ 0	$ 0
Financial impact due to the default of previous TDR taken as charge- offs or additional provisions	$ 0	$ 0	$ 0	$ 0
CRE owner occupied | Commercial real estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number (in investment securities) | investmentSecurity	0	0	1	0
Pre-mod outstanding principal balance	$ 0	$ 0	$ 740	$ 0
Post-mod outstanding principal balance	0	0	742	0
Financial impact due to TDR taken as additional provision	$ 0	$ 0	$ 742	$ 0
Number that defaulted during the period (in investment securities) | investmentSecurity	0	0	0	0
Recorded investment of TDRs that defaulted during the period	$ 0	$ 0	$ 0	$ 0
Financial impact due to the default of previous TDR taken as charge- offs or additional provisions	$ 0	$ 0	$ 0	$ 0
Multifamily | Commercial real estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number (in investment securities) | investmentSecurity	0	0	0	0
Pre-mod outstanding principal balance	$ 0	$ 0	$ 0	$ 0
Post-mod outstanding principal balance	0	0	0	0
Financial impact due to TDR taken as additional provision	$ 0	$ 0	$ 0	$ 0
Number that defaulted during the period (in investment securities) | investmentSecurity	0	0	0	0
Recorded investment of TDRs that defaulted during the period	$ 0	$ 0	$ 0	$ 0
Financial impact due to the default of previous TDR taken as charge- offs or additional provisions	$ 0	$ 0	$ 0	$ 0
Farmland | Commercial real estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number (in investment securities) | investmentSecurity	0	0	0	2,000
Pre-mod outstanding principal balance	$ 0	$ 0	$ 0	$ 230
Post-mod outstanding principal balance	0	0	0	298
Financial impact due to TDR taken as additional provision	$ 0	$ 0	$ 0	$ 0
Number that defaulted during the period (in investment securities) | investmentSecurity	0	0	3	0
Recorded investment of TDRs that defaulted during the period	$ 0	$ 0	$ 847	$ 0
Financial impact due to the default of previous TDR taken as charge- offs or additional provisions	$ 0	$ 0	$ 0	$ 0
SFR 1-4 1st DT liens | Consumer
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number (in investment securities) | investmentSecurity	0	0	0	0
Pre-mod outstanding principal balance	$ 0	$ 0	$ 0	$ 0
Post-mod outstanding principal balance	0	0	0	0
Financial impact due to TDR taken as additional provision	$ 0	$ 0	$ 0	$ 0
Number that defaulted during the period (in investment securities) | investmentSecurity	0	1,000	0	2,000
Recorded investment of TDRs that defaulted during the period	$ 0	$ 735	$ 0	$ 1,037
Financial impact due to the default of previous TDR taken as charge- offs or additional provisions	$ 0	$ 0	$ 0	$ 0
SFR HELOCs and junior liens | Consumer
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number (in investment securities) | investmentSecurity	0	0	0	2,000
Pre-mod outstanding principal balance	$ 0	$ 0	$ 0	$ 172
Post-mod outstanding principal balance	0	0	0	169
Financial impact due to TDR taken as additional provision	$ 0	$ 0	$ 0	$ 0
Number that defaulted during the period (in investment securities) | investmentSecurity	0	0	0	0
Recorded investment of TDRs that defaulted during the period	$ 0	$ 0	$ 0	$ 0
Financial impact due to the default of previous TDR taken as charge- offs or additional provisions	$ 0	$ 0	$ 0	$ 0
Other | Consumer
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number (in investment securities) | investmentSecurity	0	0	0	0
Pre-mod outstanding principal balance	$ 0	$ 0	$ 0	$ 0
Post-mod outstanding principal balance	0	0	0	0
Financial impact due to TDR taken as additional provision	$ 0	$ 0	$ 0	$ 0
Number that defaulted during the period (in investment securities) | investmentSecurity	0	0	0	0
Recorded investment of TDRs that defaulted during the period	$ 0	$ 0	$ 0	$ 0
Financial impact due to the default of previous TDR taken as charge- offs or additional provisions	$ 0	$ 0	$ 0	$ 0

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Leases - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2021 renewalOption
Leases [Abstract]
Number of lease renewal options (in renewal options)	1

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Leases - Components of Lease Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Leases [Abstract]
Operating lease cost	$ 1,267	$ 1,291	$ 2,526	$ 2,586
Short-term lease cost	61	65	122	128
Variable lease cost	(1)	1	(3)	6
Sublease income	(11)	(35)	(24)	(69)
Total lease cost	$ 1,316	$ 1,322	$ 2,621	$ 2,651

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Leases - Supplemental Cash Flow Information Related To Leases (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Leases [Abstract]
Operating cash flows for operating leases	$ 1,226	$ 1,243	$ 2,430	$ 2,480
ROUA obtained in exchange for operating lease liabilities	$ 0	$ 675	$ 1,308	$ 4,068

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Leases - Weighted Average Operating Lease Term And Discount Rate (Detail)	Jun. 30, 2021	Jun. 30, 2020
Leases [Abstract]
Weighted-average remaining lease term (years)	9 years 9 months 18 days	10 years 3 months 18 days
Weighted-average discount rate	3.03%	3.17%

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Leases - Future Minimum Rental Payments For Operating Leases (Detail) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Leases [Abstract]
2021	$ 2,252
2022	4,295
2023	3,624
2024	3,352
2025	2,891
Thereafter	14,925
Total	31,339
Discount for present value of expected cash flows	(4,632)
Lease liability	$ 26,707	$ 27,973

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Deposits - Summary of Balances of Deposits (Detail) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Deposits [Abstract]
Noninterest-bearing demand	$ 2,843,783	$ 2,581,517
Interest-bearing demand	1,486,321	1,414,908
Savings	2,337,557	2,164,942
Time certificates, $250,000 or more	59,589	73,147
Other time certificates	264,803	271,420
Total deposits	$ 6,992,053	$ 6,505,934

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Deposits - Additional Information (Detail) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Schedule Of Deposits [Line Items]
Overdrawn deposit balances classified as consumer loans	$ 916	$ 985
California
Schedule Of Deposits [Line Items]
Certificate of deposits, included in time certificates, over $250,000	$ 10,000	$ 10,000

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Commitments and Contingencies - Summary of Bank's Commitments and Contingent Liabilities (Detail) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Commitments to extend credit
Real estate construction loans
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Commitments to extend credit	207,741	227,876
Real estate mortgage loans
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Commitments to extend credit	274,339	202,306
Standby letters of credit
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Commitments to extend credit	14,112	15,056
Commercial Loan
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Commitments to extend credit	426,278	462,422
Consumer loans
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Commitments to extend credit	566,332	534,223
Deposit account overdraft privilege
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Commitments to extend credit	$ 112,993	$ 110,813

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Shareholders' Equity - Additional Information (Detail) - USD ($)	3 Months Ended			6 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Feb. 25, 2021	Dec. 31, 2020
Class of Stock [Line Items]
Cash dividends received	$ 8,367,000		$ 12,694,000	$ 16,139,000	$ 39,448,000
Repurchase of common stock	$ 2,551,000		$ 8,009,000	2,561,000	25,304,000
Market value of shares repurchased under equity compensation plans				$ 451,000	$ 494,000
Employee Stock
Class of Stock [Line Items]
Company's common stock in lieu of cash to exercise options to purchase shares (in shares)	0		0	0	4,668
Other Share Based Awards
Class of Stock [Line Items]
Company's common stock in lieu of cash to exercise options to purchase shares (in shares)	9,660		11,306	9,730	11,439
2021 Stock Repurchase Plan
Class of Stock [Line Items]
Repurchase of common stock (in shares)						2,000,000
Stock repurchase program, percentage of common stock						6.70%
Repurchase of common stock (in shares)	45,354			45,354
Repurchase of common stock	$ 2,101,000			$ 2,101,000
2019 Stock Repurchase Plan
Class of Stock [Line Items]
Repurchase of common stock (in shares)		223
Repurchase of common stock		$ 8,000
Cumulative number of shares repurchased (in shares)							858,717
Common Stock
Class of Stock [Line Items]
Repurchase of common stock (in shares)	55,014		271,299	55,307	829,969
Repurchase of common stock	$ 983,000		$ 4,833,000	$ 988,000	$ 14,795,000
Market value of shares repurchased under equity compensation plans	$ 450,000		$ 346,000	$ 452,000	$ 494,000

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Stock Options and Other Equity-Based Incentive Instruments - Additional Information (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Dec. 31, 2020	Apr. 16, 2019
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Weighted-average remaining contractual term (in years)	2 years 8 months 12 days
Number of units released (in shares)	0
Number of units increased (in shares)	169,529
Restricted Stock Units (RSUs) | Service Condition Vesting RSUs
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
RSUs granted (in shares)	47,029
Number of units outstanding expected to vest (in shares)	105,102	99,809
Pre-tax compensation costs	$ 3,894
Number of units released (in shares)	42,712
Restricted Stock Units (RSUs) | Market Plus Service Condition Vesting RSUs
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
RSUs granted (in shares)	31,479
Number of units outstanding expected to vest (in shares)	113,019	81,615
Weighted-average remaining contractual term (in years)	2 years 4 months 24 days
Pre-tax compensation costs	$ 2,106
Number of units released (in shares)	0
2019 Plan
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Aggregate number of shares of TriCo's common stock issued (in shares)			1,500,000

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Stock Options and Other Equity-Based Incentive Instruments - Stock Option Activity (Detail)	6 Months Ended
	Jun. 30, 2021 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Options outstanding at beginning of period (in shares) | shares	128,500
Options granted (in shares) | shares	0
Options exercised (in shares) | shares	(1,675)
Options forfeited (in shares) | shares	0
Options outstanding at end of period (in shares) | shares	126,825
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Weighted Average Exercise Price at beginning of period (in USD per share) | $ / shares	$ 17.72
Weighted Average Exercise Price of Options Granted (in USD per share) | $ / shares	0
Weighted Average Exercise Price of Options Exercised (in USD per share) | $ / shares	16.59
Weighted Average Exercise Price of Options Forfeited (in USD per share) | $ / shares	0
Weighted Average Exercise Price at end of period (in USD per share) | $ / shares	$ 17.74

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Stock Options and Other Equity-Based Incentive Instruments - Summary of Options Outstanding (Detail) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Number of options (in shares)	126,825	128,500
Weighted average exercise price (in USD per share)	$ 17.74	$ 17.72
Intrinsic value (in thousands)	$ 3,763
Weighted average remaining contractual term (in years)	1 year 6 months
Currently Exercisable
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Number of options (in shares)	126,825
Weighted average exercise price (in USD per share)	$ 17.74
Intrinsic value (in thousands)	$ 3,763
Weighted average remaining contractual term (in years)	1 year 6 months
Currently Not Exercisable
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Number of options (in shares)	0
Weighted average exercise price (in USD per share)	$ 0
Intrinsic value (in thousands)	$ 0
Weighted average remaining contractual term (in years)	0 years

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Stock Options and Other Equity-Based Incentive Instruments - Restricted Stock Unit (RSU) Activity (Detail)	6 Months Ended
	Jun. 30, 2021 shares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
RSUs released (in shares)	0
Restricted Stock Units (RSUs) | Service Condition Vesting RSUs
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Outstanding at beginning of period (in shares)	99,809
RSUs granted (in shares)	47,029
RSUs added through dividend and performance credits (in shares)	1,090
RSUs released (in shares)	(42,712)
RSUs forfeited/expired (in shares)	(114)
Outstanding at end of period (in shares)	105,102
Restricted Stock Units (RSUs) | Market Plus Service Condition Vesting RSUs
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Outstanding at beginning of period (in shares)	81,615
RSUs granted (in shares)	31,479
RSUs added through dividend and performance credits (in shares)	0
RSUs released (in shares)	0
RSUs forfeited/expired (in shares)	(75)
Outstanding at end of period (in shares)	113,019

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Non-interest Income and Expense - Components of Non-Interest Income (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Schedule Of Other Noninterest Income And Expense [Line Items]
Total service charges and fees	$ 10,930	$ 8,168	$ 21,406	$ 17,294
Increase in cash value of life insurance	745	710	1,418	1,430
Asset management and commission income	947	661	1,781	1,577
Gain on sale of loans	2,847	1,736	6,094	2,627
Lease brokerage income	249	127	359	320
Sale of customer checks	116	88	235	212
Gain on sale of investment securities	0	0	0	0
Gain (loss) on marketable equity securities	8	25	(45)	72
Other	115	142	819	(55)
Total other non-interest income	5,027	3,489	10,661	6,183
Total non-interest income	15,957	11,657	32,067	23,477
ATM and interchange fees
Schedule Of Other Noninterest Income And Expense [Line Items]
Total service charges and fees	6,558	5,165	12,419	10,276
Service charges on deposit accounts
Schedule Of Other Noninterest Income And Expense [Line Items]
Total service charges and fees	3,462	3,046	6,731	7,092
Other service fees
Schedule Of Other Noninterest Income And Expense [Line Items]
Total service charges and fees	914	734	1,785	1,492
Mortgage banking service fees
Schedule Of Other Noninterest Income And Expense [Line Items]
Total service charges and fees	467	459	930	928
Change in value of mortgage servicing rights
Schedule Of Other Noninterest Income And Expense [Line Items]
Total service charges and fees	$ (471)	$ (1,236)	$ (459)	$ (2,494)

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Non-interest Income and Expense - Components of Non Interest Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Other Income and Expenses [Abstract]
Base salaries, net of deferred loan origination costs	$ 17,537	$ 17,277	$ 33,048	$ 34,900
Incentive compensation	4,322	2,395	7,902	5,496
Benefits and other compensation costs	5,222	7,383	11,461	13,931
Total salaries and benefits expense	27,081	27,055	52,411	54,327
Occupancy	3,700	3,398	7,426	7,273
Data processing and software	3,201	3,657	6,403	7,024
Equipment	1,207	1,350	2,724	2,862
Intangible amortization	1,431	1,431	2,862	2,862
Advertising	734	531	1,114	1,196
ATM and POS network charges	1,551	1,210	2,797	2,583
Professional fees	1,046	741	1,640	1,444
Telecommunications	564	639	1,145	1,364
Regulatory assessments and insurance	618	360	1,230	455
Postage	124	283	322	573
Operational losses	212	184	421	405
Courier service	288	337	582	668
Gain on sale or acquisition of foreclosed assets	(15)	(16)	(66)	(57)
(Gain) loss on disposal of fixed assets	(426)	15	(426)	15
Other miscellaneous expense	2,855	4,375	5,204	7,306
Total other non-interest expense	17,090	18,495	33,378	35,973
Total non-interest expense	$ 44,171	$ 45,550	$ 85,789	$ 90,300

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Earnings Per Share - Computation of Earnings Per Share (Detail) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Earnings Per Share [Abstract]
Net income	$ 28,362	$ 7,430	$ 62,011	$ 23,551
Average number of common shares outstanding (in shares)	29,719	29,754	29,723	30,074
Effect of dilutive stock options and restricted stock (in shares)	185	129	181	129
Average number of common shares outstanding used to calculate diluted earnings per share (in shares)	29,904	29,883	29,904	30,203
Options excluded from diluted earnings per share because of their antidilutive effect (in shares)	0	0	0	0

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Comprehensive Income (Loss) - Components of Other Comprehensive Income (Loss) and Related Tax Effects (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income (loss)	$ 5,206	$ 25,751	$ (4,113)	$ 5,841
Net unrealized gain on available for sale securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
OCI, before reclassifications, before tax	7,392	34,959	(4,945)	5,398
Reclassifications, before tax	0	0	0	0
OCI, after reclassifications, before tax	7,392	34,959	(4,945)	5,398
Tax effect	(2,186)	(10,334)	1,461	(1,595)
Other comprehensive income (loss)	5,206	24,625	(3,484)	3,803
Unfunded status of the supplemental retirement plans
Accumulated Other Comprehensive Income (Loss) [Line Items]
OCI, before reclassifications, before tax	(49)	661	(98)	1,109
Reclassifications, before tax	49	465	98	929
OCI, after reclassifications, before tax	0	1,126	0	2,038
Tax effect	0	0	0	0
Other comprehensive income (loss)	0	1,126	0	2,038
Amortization of prior service cost
Accumulated Other Comprehensive Income (Loss) [Line Items]
Reclassifications, before tax	(15)	(13)	(29)	(27)
Amortization of actuarial losses
Accumulated Other Comprehensive Income (Loss) [Line Items]
Reclassifications, before tax	64	478	127	956
Joint beneficiary agreement liability
Accumulated Other Comprehensive Income (Loss) [Line Items]
OCI, before reclassifications, before tax	0	0	(629)	0
Tax effect	0	0	0	0
OCI, before reclassifications, net of tax	$ 0	$ 0	$ (629)	$ 0

XML

Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income, net of tax	$ 8,167	$ 12,280
Net unrealized gain on available for sale securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income, before tax	14,238	19,183
Accumulated other comprehensive income, tax effect	(4,210)	(5,671)
Accumulated other comprehensive income, net of tax	10,028	13,512
Unfunded status of the supplemental retirement plans
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income, before tax	(1,294)	(1,294)
Accumulated other comprehensive income, tax effect	382	382
Accumulated other comprehensive income, net of tax	(912)	(912)
Joint beneficiary agreement liability
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income, before tax	(949)	(320)
Accumulated other comprehensive income, tax effect	0	0
Accumulated other comprehensive income, net of tax	$ (949)	$ (320)

XML

Fair Value Measurement - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2021 USD ($) investmentSecurity
Fair Value Disclosures [Abstract]
Number of investment securities classified as level 3 (in investment securities) | investmentSecurity	0
Carrying value of loans fully charged-off | $	$ 0

XML

Fair Value Measurement - Recorded Amount of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value Measurements on Recurring Basis - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	$ 1,861,873	$ 1,428,649
Marketable equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	2,979	3,025
Obligations of U.S. government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	1,133,416	812,374
Obligations of states and political subdivisions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	146,924	129,095
Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	2,556	2,544
Asset backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	564,672	470,251
Loans held for sale
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	5,723	6,268
Mortgage servicing rights
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	5,603	5,092
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	2,979	3,025
Level 1 | Marketable equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	2,979	3,025
Level 1 | Obligations of U.S. government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0
Level 1 | Obligations of states and political subdivisions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0
Level 1 | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0
Level 1 | Asset backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0
Level 1 | Loans held for sale
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0
Level 1 | Mortgage servicing rights
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	1,853,291	1,420,532
Level 2 | Marketable equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0
Level 2 | Obligations of U.S. government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	1,133,416	812,374
Level 2 | Obligations of states and political subdivisions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	146,924	129,095
Level 2 | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	2,556	2,544
Level 2 | Asset backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	564,672	470,251
Level 2 | Loans held for sale
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	5,723	6,268
Level 2 | Mortgage servicing rights
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	5,603	5,092
Level 3 | Marketable equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0
Level 3 | Obligations of U.S. government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0
Level 3 | Obligations of states and political subdivisions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0
Level 3 | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0
Level 3 | Asset backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0
Level 3 | Loans held for sale
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0
Level 3 | Mortgage servicing rights
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	$ 5,603	$ 5,092

XML

Fair Value Measurement - Reconciliation of Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3) on Recurring Basis (Detail) - Mortgage servicing rights - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	$ 5,607	$ 5,168	$ 5,092	$ 6,200
Transfers into (out of) Level 3	0	0	0	0
Change Included in Earnings	(471)	(1,236)	(459)	(2,494)
Issuances	467	318	970	544
Ending Balance	$ 5,603	$ 4,250	$ 5,603	$ 4,250

XML

Fair Value Measurement - Quantitative Information about Recurring Level 3 Fair Value Measurements (Detail) - Mortgage servicing rights $ in Thousands	Jun. 30, 2021 USD ($)	Dec. 31, 2020 USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Mortgages servicing rights, fair value	$ 5,603	$ 5,092
Minimum | Valuation Technique, Discounted Cash Flow | Measurement Input, Constant Prepayment Rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.12	0.14
Minimum | Valuation Technique, Discounted Cash Flow | Measurement Input, Discount Rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.10	0.10
Maximum | Valuation Technique, Discounted Cash Flow | Measurement Input, Constant Prepayment Rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.17	0.200
Maximum | Valuation Technique, Discounted Cash Flow | Measurement Input, Discount Rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.14	0.14
Weighted Average | Valuation Technique, Discounted Cash Flow | Measurement Input, Constant Prepayment Rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.142	0.176
Weighted Average | Valuation Technique, Discounted Cash Flow | Measurement Input, Discount Rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.12	0.12

XML

Fair Value Measurement - Assets and Liabilities Measured at Fair Value on Nonrecurring Basis (Detail) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Foreclosed assets (Residential real estate)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	$ 123		$ 979
Individually evaluated loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	4,912		1,424
Fair Value Nonrecurring Basis
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	5,035		2,403
Total Gains/(Losses)	(1,583)		(1,334)
Fair Value Nonrecurring Basis | Individually evaluated loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	4,912	$ 162	1,424
Total Gains/(Losses)	(1,604)	(16)	(1,489)
Fair Value Nonrecurring Basis | Foreclosed Assets | Foreclosed assets (Residential real estate)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	123		979
Total Gains/(Losses)	21		155
Fair Value Nonrecurring Basis | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0		0
Fair Value Nonrecurring Basis | Level 1 | Individually evaluated loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0	0
Fair Value Nonrecurring Basis | Level 1 | Foreclosed Assets | Foreclosed assets (Residential real estate)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0		0
Fair Value Nonrecurring Basis | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0		0
Fair Value Nonrecurring Basis | Level 2 | Individually evaluated loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0	0
Fair Value Nonrecurring Basis | Level 2 | Foreclosed Assets | Foreclosed assets (Residential real estate)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0		0
Fair Value Nonrecurring Basis | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	5,035		2,403
Fair Value Nonrecurring Basis | Level 3 | Individually evaluated loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	4,912	$ 162	1,424
Fair Value Nonrecurring Basis | Level 3 | Foreclosed Assets | Foreclosed assets (Residential real estate)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	$ 123		$ 979

XML

Fair Value Measurement - Quantitative Information about (Level 3) Fair Value Measurements for Financial Instruments Measured at Fair Value on Nonrecurring Basis (Detail) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Foreclosed assets (Residential real estate)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	$ 123	$ 979
Individually evaluated loans
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	$ 4,912	$ 1,424

XML

Fair Value Measurement - Estimated Fair Values of Financial Instruments that are Reported at Amortized Cost in Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Financial assets:
Cash and due from banks	$ 86,052	$ 77,253
Cash at Federal Reserve and other banks	553,688	592,298
Amortized cost, held to maturity	235,778	284,563
Financial liabilities:
Other borrowings	40,559	26,914
Junior subordinated debt	57,852	57,635
Level 3 | Overdraft Privilege Commitments
Off-balance sheet:
Contract amount, Off-balance sheet	112,993	110,813
Level 3 | Standby letters of credit
Off-balance sheet:
Contract amount, Off-balance sheet	14,112	15,056
Level 3 | Commitments
Off-balance sheet:
Contract amount, Off-balance sheet	1,474,690	1,426,827
Carrying Amount | Level 1
Financial assets:
Cash and due from banks	86,052	77,253
Cash at Federal Reserve and other banks	553,688	592,298
Carrying Amount | Level 2
Financial assets:
Amortized cost, held to maturity	235,778	284,563
Restricted equity securities	17,250	17,250
Financial liabilities:
Deposits	6,992,053	6,505,934
Other borrowings	40,559	26,914
Carrying Amount | Level 3
Financial assets:
Loans, net	4,870,278	4,671,280
Financial liabilities:
Junior subordinated debt	57,852	57,635
Fair Value | Level 1
Financial assets:
Cash and due from banks	86,052	77,253
Cash at Federal Reserve and other banks	553,688	592,298
Fair Value | Level 2
Financial assets:
Amortized cost, held to maturity	247,019	298,726
Financial liabilities:
Deposits	6,998,976	6,507,235
Other borrowings	40,559	26,914
Fair Value | Level 3
Financial assets:
Loans, net	4,875,176	4,753,027
Financial liabilities:
Junior subordinated debt	57,795	56,632
Fair Value | Level 3 | Overdraft Privilege Commitments
Off-balance sheet:
Fair value, Off-balance sheet	1,129	1,108
Fair Value | Level 3 | Standby letters of credit
Off-balance sheet:
Fair value, Off-balance sheet	141	151
Fair Value | Level 3 | Commitments
Off-balance sheet:
Fair value, Off-balance sheet	$ 14,747	$ 14,268

XML

Regulatory Matters - Actual and Required Capital Ratios of Bank (Detail) $ in Thousands	Jun. 30, 2021 USD ($)	Dec. 31, 2020 USD ($)
Parent
Schedule of Capitalization [Line Items]
Total Capital (to Risk Weighted Assets)	$ 846,617	$ 793,433
Tier 1 Capital (to Risk Weighted Assets)	777,241	727,879
Common Equity Tier 1 Capital (to Risk Weighted Assets)	721,126	671,975
Tier 1 Capital (to Average Assets)	$ 777,241	$ 727,879
Total Capital Ratio (to Risk Weighted Assets)	0.1531	0.1522
Tier 1 Capital Ratio (to Risk Weighted Assets)	0.1406	0.1396
Common Equity Tier 1 Capital Ratio (to Risk Weighted Assets)	0.1304	0.1289
Tier 1 Capital Ratio (to Average Assets)	0.0985	0.0993
Parent | Basel III Fully Phased In
Schedule of Capitalization [Line Items]
Total Capital (to Risk Weighted Assets), Minimum Capital Requirement	$ 580,463	$ 547,352
Tier 1 Capital (to Risk Weighted Assets), Minimum Capital Requirement	469,899	443,094
Common Equity Tier 1 Capital (to Risk Weighted Assets), Minimum Capital Requirement	386,975	364,901
Tier 1 Capital (to Average Assets), Minimum Capital Requirement	$ 315,578	$ 293,138
Total Capital Ratio (to Risk Weighted Assets), Minimum Capital Requirement	0.1050	0.1050
Tier 1 Capital Ratio (to Risk Weighted Assets), Minimum Capital Requirement	0.0850	0.0850
Common Equity Tier 1 Capital Ratio (to Risk Weighted Assets), Minimum Capital Requirement	7.00%	7.00%
Tier 1 Capital Ratio (to Average Assets), Minimum Capital Requirement	0.0400	0.0400
Tri Countries Bank
Schedule of Capitalization [Line Items]
Total Capital (to Risk Weighted Assets)	$ 835,709	$ 780,320
Tier 1 Capital (to Risk Weighted Assets)	766,377	714,811
Common Equity Tier 1 Capital (to Risk Weighted Assets)	766,377	714,811
Tier 1 Capital (to Average Assets)	$ 766,377	$ 714,811
Total Capital Ratio (to Risk Weighted Assets)	0.1512	0.1497
Tier 1 Capital Ratio (to Risk Weighted Assets)	0.1387	0.1372
Common Equity Tier 1 Capital Ratio (to Risk Weighted Assets)	0.1387	0.1372
Tier 1 Capital Ratio (to Average Assets)	0.0972	0.0976
Total Capital (to Risk Weighted Assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions	$ 552,638	$ 521,101
Capital Required to be Well Capitalized to Risk Weighted Assets	0.1000	0.1000
Tier 1 Capital (to Risk Weighted Assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions	$ 442,111	$ 416,881
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets	0.0800	0.0800
Common Equity Tier 1 Capital (to Risk Weighted Assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions	$ 359,215	$ 338,716
Common Equity Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets	6.50%	6.50%
Tier 1 Capital (to Average Assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions	$ 394,076	$ 366,186
Tier One Leverage Capital Required to be Well Capitalized to Average Assets	0.0500	0.0500
Tri Countries Bank | Basel III Fully Phased In
Schedule of Capitalization [Line Items]
Total Capital (to Risk Weighted Assets), Minimum Capital Requirement	$ 580,270	$ 547,156
Tier 1 Capital (to Risk Weighted Assets), Minimum Capital Requirement	469,743	442,936
Common Equity Tier 1 Capital (to Risk Weighted Assets), Minimum Capital Requirement	386,847	364,771
Tier 1 Capital (to Average Assets), Minimum Capital Requirement	$ 315,261	$ 292,949
Total Capital Ratio (to Risk Weighted Assets), Minimum Capital Requirement	0.1050	0.1050
Tier 1 Capital Ratio (to Risk Weighted Assets), Minimum Capital Requirement	0.0850	0.0850
Common Equity Tier 1 Capital Ratio (to Risk Weighted Assets), Minimum Capital Requirement	7.00%	7.00%
Tier 1 Capital Ratio (to Average Assets), Minimum Capital Requirement	0.0400	0.0400

XML

Subsequent Events - Narrative (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Subsequent Event [Line Items]
Assets	$ 8,170,365	$ 7,639,529
Valley Republic Bancorp
Subsequent Event [Line Items]
Assets	$ 1,360,000

XML

Label	Element	Value
Accounting Standards Update [Extensible List]	us-gaap_AccountingStandardsUpdateExtensibleList	Accounting Standards Update 2016-13 [Member]