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Loans and Allowance for Credit Losses on Loans (Tables)
6 Months Ended
Jun. 30, 2022
Loans and Allowance for Credit Losses on Loans  
Schedule of loans

    

June 30, 

    

December 31, 

2022

    

2021

(Dollars in thousands)

Loans held-for-investment:

Commercial

$

531,421

$

682,834

Real estate:

CRE - owner occupied

597,521

595,934

CRE - non-owner occupied

 

993,621

 

902,326

Land and construction

 

155,389

 

147,855

Home equity

 

116,641

 

109,579

Multifamily

221,938

218,856

Residential mortgages

448,958

416,660

Consumer and other

 

18,354

 

16,744

Loans

 

3,083,843

 

3,090,788

Deferred loan fees, net

 

(1,391)

 

(3,462)

Loans, net of deferred fees

 

3,082,452

 

3,087,326

Allowance for credit losses on loans

 

(45,490)

 

(43,290)

Loans, net

$

3,036,962

$

3,044,036

Schedule of changes in allowance for loan (credit) losses

Three Months Ended June 30, 2022

CRE

CRE

Owner

Non-owner

Land &

Home

Multi-

Residential

Consumer

Commercial

    

Occupied

Occupied

    

Construction

Equity

Family

Mortgage

and Other

    

Total

(Dollars in thousands)

Beginning of period balance

$

6,801

$

6,397

$

19,413

$

2,006

$

722

$

2,544

$

4,757

$

148

$

42,788

Charge-offs

 

(355)

 

 

 

(355)

Recoveries

 

79

 

4

 

31

3,124

 

3,238

Net recoveries

 

(276)

 

4

 

31

 

3,124

 

2,883

Provision for (recapture of) credit losses on loans

77

(392)

2,061

492

(58)

280

475

(3,116)

(181)

End of period balance

$

6,602

$

6,009

$

21,474

$

2,498

$

695

$

2,824

$

5,232

$

156

$

45,490

Three Months Ended June 30, 2021

CRE

CRE

Owner

Non-owner

Land &

Home

Multi-

Residential

Consumer

Commercial

    

Occupied

Occupied

    

Construction

Equity

Family

Mortgage

and Other

    

Total

(Dollars in thousands)

Beginning of period balance

$

11,600

$

8,368

$

16,431

$

2,754

$

1,171

$

2,751

$

918

$

303

$

44,296

Charge-offs

 

(105)

 

 

 

(105)

Recoveries

 

115

 

4

 

68

16

 

55

 

258

Net recoveries

 

10

 

4

 

68

16

 

55

 

153

Provision for (recapture of) credit losses on loans

 

(753)

(166)

54

(686)

(118)

199

1,050

(73)

(493)

End of period balance

$

10,857

$

8,206

$

16,485

$

2,136

$

1,069

$

2,950

$

1,968

$

285

$

43,956

Six Months Ended June 30, 2022

CRE

CRE

Owner

Non-owner

Land &

Home

Multi-

Residential

Consumer

    

Commercial

    

Occupied

Occupied

    

Construction

Equity

Family

Mortgage

and Other

    

Total

(Dollars in thousands)

Beginning of period balance

$

8,414

$

7,954

$

17,125

$

1,831

$

864

$

2,796

$

4,132

$

174

$

43,290

Charge-offs

 

(371)

 

 

 

(371)

Recoveries

 

133

 

7

 

55

 

3,124

 

3,319

Net recoveries

 

(238)

 

7

 

55

 

3,124

 

2,948

Provision for (recapture of) credit losses on loans

(1,574)

(1,952)

4,349

667

(224)

28

1,100

(3,142)

(748)

End of period balance

$

6,602

$

6,009

$

21,474

$

2,498

$

695

$

2,824

$

5,232

$

156

$

45,490

Six Months Ended June 30, 2021

CRE

CRE

Owner

Non-owner

Land &

Home

Multi-

Residential

Consumer

Commercial

    

Occupied

Occupied

    

Construction

Equity

Family

Mortgage

and Other

    

Total

(Dollars in thousands)

Beginning of period balance

$

11,587

$

8,560

$

16,416

$

2,509

$

1,297

$

2,804

$

943

$

284

$

44,400

Charge-offs

(368)

 

 

 

(368)

Recoveries

928

 

8

 

884

39

 

70

 

1,929

Net (charge-offs) recoveries

560

 

8

 

884

39

 

70

 

1,561

Provision for (recapture of) credit losses on loans

(1,290)

(362)

69

(1,257)

(267)

146

1,025

(69)

(2,005)

End of period balance

$

10,857

$

8,206

$

16,485

$

2,136

$

1,069

$

2,950

$

1,968

$

285

$

43,956

Schedule of nonperforming loans by class

June 30, 2022

    

    

Restructured

    

Nonaccrual

Nonaccrual

and Loans 

with no Specific

with Specific

over 90 Days

Allowance for

Allowance for

Past Due

Credit

Credit

and Still

Losses

Losses

Accruing

Total

(Dollars in thousands)

Commercial

$

222

$

418

$

918

$

1,558

Real estate:

CRE - Owner Occupied

 

1,094

 

1,094

Home equity

 

63

 

63

Total

$

1,316

$

418

$

981

$

2,715

December 31, 2021

    

    

Restructured

    

Nonaccrual

Nonaccrual

and Loans 

with no Specific

with no Specific

over 90 Days

Allowance for

Allowance for

Past Due

Credit

Credit

and Still

Losses

Losses

Accruing

Total

(Dollars in thousands)

Commercial

$

94

$

1,028

$

278

$

1,400

Real estate:

CRE - Owner Occupied

 

1,126

 

1,126

Home equity

84

84

Multifamily

 

1,128

 

1,128

Total

$

2,432

$

1,028

$

278

$

3,738

Schedule of aging of past due loans by class of loans

    

June 30, 2022

    

30 - 59

    

60 - 89

    

90 Days or

    

    

    

Days

Days

Greater

Total

Past Due

Past Due

Past Due

Past Due

Current

Total

(Dollars in thousands)

Commercial

$

6,449

$

1,691

$

991

$

9,130

$

522,291

$

531,421

Real estate:

CRE - Owner Occupied

 

 

 

1,094

1,094

 

596,427

 

597,521

CRE - Non-Owner Occupied

993,621

993,621

Land and construction

 

 

 

 

 

155,389

 

155,389

Home equity

 

 

 

 

 

116,641

 

116,641

Multifamily

221,938

221,938

Residential mortgages

448,958

448,958

Consumer and other

 

 

 

 

 

18,354

 

18,354

Total

$

6,449

$

1,691

$

2,085

$

10,224

$

3,073,619

$

3,083,843

    

December 31, 2021

    

30 - 59

    

60 - 89

    

90 Days or

    

    

    

Days

Days

Greater

Total

Past Due

Past Due

Past Due

Past Due

Current

Total

(Dollars in thousands)

Commercial

$

2,714

$

168

$

408

$

3,290

$

679,544

$

682,834

Real estate:

CRE - Owner Occupied

 

 

 

1,126

1,126

 

594,808

 

595,934

CRE - Non-Owner Occupied

902,326

902,326

Land and construction

 

 

 

 

 

147,855

 

147,855

Home equity

 

 

 

 

 

109,579

 

109,579

Multifamily

218,856

218,856

Residential mortgages

599

599

416,061

416,660

Consumer and other

 

 

 

 

 

16,744

 

16,744

Total

$

3,313

$

168

$

1,534

$

5,015

$

3,085,773

$

3,090,788

Summary of loan portfolio by loan type and credit quality classification

Revolving

Loans

Term Loans Amortized Cost Basis by Originated Period as of June 30, 2022

Amortized

2017 and

Cost

06/30/2022

12/31/2021

12/31/2020

12/31/2019

12/31/2018

Prior

Basis

Total

(Dollars in thousands)

Commercial:

Pass

$

95,919

$

53,413

$

45,686

$

9,416

$

9,239

$

9,031

$

270,442

$

493,146

Special Mention

2,500

5,660

479

111

400

318

22,197

31,665

Substandard

4

463

223

610

10

76

4,584

5,970

Substandard-Nonaccrual

-

474

57

-

26

83

-

640

Total

98,423

60,010

46,445

10,137

9,675

9,508

297,223

531,421

CRE - Owner Occupied:

Pass

68,066

162,615

123,243

57,289

45,689

112,933

8,080

577,915

Special Mention

-

5,738

5,924

-

207

409

-

12,278

Substandard

825

-

3,138

-

1,458

813

-

6,234

Substandard-Nonaccrual

-

-

1,094

-

-

-

-

1,094

Total

68,891

168,353

133,399

57,289

47,354

114,155

8,080

597,521

CRE - Non-Owner Occupied:

Pass

194,717

363,614

126,203

110,251

15,443

171,247

2,601

984,076

Special Mention

-

-

404

-

-

353

757

Substandard

-

-

2,712

-

-

6,076

-

8,788

Substandard-Nonaccrual

-

-

-

-

-

-

-

-

Total

194,717

363,614

129,319

110,251

15,443

177,676

2,601

993,621

Land and construction:

Pass

77,361

68,164

7,778

2,080

-

-

6

155,389

Special Mention

-

-

-

-

-

-

-

-

Substandard

-

-

-

-

-

-

-

-

Substandard-Nonaccrual

-

-

-

-

-

-

-

-

Total

77,361

68,164

7,778

2,080

-

-

6

155,389

Home equity:

Pass

-

-

-

-

35

-

116,370

116,405

Special Mention

-

-

-

-

-

-

-

-

Substandard

-

-

-

-

-

144

92

236

Substandard-Nonaccrual

-

-

-

-

-

-

-

Total

-

-

-

-

35

144

116,462

116,641

Multifamily:

Pass

19,789

99,389

27,610

26,351

15,362

22,280

50

210,831

Special Mention

-

1,099

-

4,263

-

-

5,362

Substandard

-

5,745

-

-

-

-

-

5,745

Substandard-Nonaccrual

-

-

-

-

-

-

-

-

Total

19,789

106,233

27,610

30,614

15,362

22,280

50

221,938

Residential mortgage:

Pass

79,470

318,949

16,733

7,534

2,934

23,116

-

448,736

Special Mention

-

-

-

-

-

-

-

-

Substandard

-

-

-

-

-

222

-

222

Substandard-Nonaccrual

-

-

-

-

-

-

-

-

Total

79,470

318,949

16,733

7,534

2,934

23,338

-

448,958

Consumer and other:

Pass

73

514

-

23

1,395

872

15,477

18,354

Special Mention

-

-

-

-

-

-

-

-

Substandard

-

-

-

-

-

-

-

Substandard-Nonaccrual

-

-

-

-

-

-

-

-

Total

73

514

-

23

1,395

872

15,477

18,354

Total loans

$

538,724

$

1,085,837

$

361,284

$

217,928

$

92,198

$

347,973

$

439,899

$

3,083,843

Risk Grades:

Pass

$

535,395

$

1,066,658

$

347,253

$

212,944

$

90,097

$

339,479

$

413,026

$

3,004,852

Special Mention

2,500

12,497

6,807

4,374

607

1,080

22,197

50,062

Substandard

829

6,208

6,073

610

1,468

7,331

4,676

27,195

Substandard-Nonaccrual

-

474

1,151

-

26

83

-

1,734

Grand Total

$

538,724

$

1,085,837

$

361,284

$

217,928

$

92,198

$

347,973

$

439,899

$

3,083,843

Revolving

Loans

Term Loans Amortized Cost Basis by Originated Period as of December 31, 2021

Amortized

Cost

2021

2020

2019

2018

2017

Prior Periods

Basis

Total

(Dollars in thousands)

Commercial:

Pass

$

208,645

65,257

$

15,086

$

12,281

$

7,311

$

5,507

$

349,717

$

663,804

Special Mention

2,210

512

219

764

243

204

4,024

8,176

Substandard

3,709

930

-

13

302

2

4,776

9,732

Substandard-Nonaccrual

595

442

37

-

-

48

-

1,122

Total

215,159

67,141

15,342

13,058

7,856

5,761

358,517

682,834

CRE - Owner Occupied:

Pass

170,504

135,103

65,596

57,017

31,657

107,203

14,486

581,566

Special Mention

568

2,254

672

-

-

355

-

3,849

Substandard

985

6,042

-

1,477

-

889

-

9,393

Substandard-Nonaccrual

-

1,100

-

-

-

26

-

1,126

Total

172,057

144,499

66,268

58,494

31,657

108,473

14,486

595,934

CRE - Non-Owner Occupied:

Pass

374,470

141,404

115,170

45,959

68,125

134,454

2,068

881,650

Special Mention

-

5,388

-

-

1,133

3,816

-

10,337

Substandard

-

5,842

-

-

-

4,497

-

10,339

Substandard-Nonaccrual

-

-

-

-

-

-

-

-

Total

374,470

152,634

115,170

45,959

69,258

142,767

2,068

902,326

Land and construction:

Pass

125,844

11,401

4,385

-

-

1,300

3,566

146,496

Special Mention

1,359

-

-

-

-

-

-

1,359

Substandard

-

-

-

-

-

-

-

-

Substandard-Nonaccrual

-

-

-

-

-

-

-

-

Total

127,203

11,401

4,385

-

-

1,300

3,566

147,855

Home equity:

Pass

-

-

-

46

-

-

106,738

106,784

Special Mention

-

-

-

-

-

-

1,931

1,931

Substandard

-

-

-

-

-

54

726

780

Substandard-Nonaccrual

-

84

-

-

-

-

-

84

Total

-

84

-

46

-

54

109,395

109,579

Multifamily:

Pass

102,535

27,955

30,820

16,151

16,261

13,895

-

207,617

Special Mention

5,804

-

4,307

-

-

-

-

10,111

Substandard

-

-

-

-

-

-

-

-

Substandard-Nonaccrual

1,128

-

-

-

-

-

-

1,128

Total

109,467

27,955

35,127

16,151

16,261

13,895

-

218,856

Residential mortgage:

Pass

360,424

17,875

8,065

3,070

6,015

19,967

-

415,416

Special Mention

-

-

-

-

-

1,244

-

1,244

Substandard

-

-

-

-

-

-

-

-

Substandard-Nonaccrual

-

-

-

-

-

-

-

-

Total

360,424

17,875

8,065

3,070

6,015

21,211

-

416,660

Consumer and other:

Pass

491

2

40

1,426

14

1,000

13,756

16,729

Special Mention

-

-

-

-

-

-

-

-

Substandard

15

-

-

-

-

-

-

15

Substandard-Nonaccrual

-

-

-

-

-

-

-

-

Total

506

2

40

1,426

14

1,000

13,756

16,744

Total loans

$

1,359,286

421,591

$

244,397

$

138,204

$

131,061

$

294,461

$

501,788

$

3,090,788

Risk Grades:.

Pass

$

1,342,913

398,997

$

239,162

$

135,950

$

129,383

$

283,326

$

490,331

$

3,020,062

Special Mention

9,941

8,154

5,198

764

1,376

5,619

5,955

37,007

Substandard

4,709

12,814

-

1,490

302

5,442

5,502

30,259

Substandard-Nonaccrual

1,723

1,626

37

-

-

74

-

3,460

Grand Total

$

1,359,286

421,591

$

244,397

$

138,204

$

131,061

$

294,461

$

501,788

$

3,090,788

Schedule of loans by class modified as troubled debt restructurings

During the Six Months Ended

June 30, 2021

Pre-modification

Post-modification

Number

Outstanding

Outstanding

of

Recorded

Recorded

Troubled Debt Restructurings:

    

Contracts

    

Investment

    

Investment

(Dollars in thousands)

Commercial

1

$

3

$

3

Total

1

$

3

$

3