Loans and Allowance for Credit Losses on Loans (Tables)

12 Months Ended

Dec. 31, 2023

Loans and Allowance for Credit Losses on Loans

Schedule of loans

	December 31,		December 31,
	2023		2022
	(Dollars in thousands)
Loans held-for-investment:
Commercial	$	463,778	$	533,915
Real estate:
CRE - owner occupied		583,253		614,663
CRE - non-owner occupied		1,256,590		1,066,368
Land and construction		140,513		163,577
Home equity		119,125		120,724
Multifamily		269,734		244,882
Residential mortgages		496,961		537,905
Consumer and other		20,919		17,033
Loans		3,350,873		3,299,067
Deferred loan fees, net		(495)		(517)
Loans, net of deferred fees		3,350,378		3,298,550
Allowance for credit losses on loans		(47,958)		(47,512)
Loans, net	$	3,302,420	$	3,251,038

Schedule of changes in allowance for loan (credit) losses

	Year Ended December 31, 2023
			CRE		CRE
			Owner		Non-owner		Land &		Home		Multi-		Residential		Consumer
	Commercial		Occupied		Occupied		Construction		Equity		Family		Mortgages		and Other		Total
	(Dollars in thousands)
Beginning of period balance	$	6,617	$	5,751	$	22,135	$	2,941	$	666	$	3,366	$	5,907	$	129	$	47,512
Charge-offs		(750)		—		—		—		(246)		—		—		(15)		(1,011)
Recoveries		346		11		—		—		351		—		—		—		708
Net (charge-offs) recoveries		(404)		11		—		—		105		—		—		(15)		(303)
Provision for (recapture of) credit losses on loans		(360)		(641)		3,188		(589)		(127)		1,687		(2,482)		73		749
End of period balance	$	5,853	$	5,121	$	25,323	$	2,352	$	644	$	5,053	$	3,425	$	187	$	47,958
	Year Ended December 31, 2022
			CRE		CRE
			Owner		Non-owner		Land &		Home		Multi-		Residential		Consumer
	Commercial		Occupied		Occupied		Construction		Equity		Family		Mortgages		and Other		Total
	(Dollars in thousands)
Beginning of period balance	$	8,414	$	7,954	$	17,125	$	1,831	$	864	$	2,796	$	4,132	$	174	$	43,290
Charge-offs		(434)		—		—		—		—		—		—		—		(434)
Recoveries		427		15		—		—		105		—		—		3,343		3,890
Net (charge-offs) recoveries		(7)		15		—		—		105		—		—		3,343		3,456
Provision for (recapture of) credit losses on loans		(1,790)		(2,218)		5,010		1,110		(303)		570		1,775		(3,388)		766
End of period balance	$	6,617	$	5,751	$	22,135	$	2,941	$	666	$	3,366	$	5,907	$	129	$	47,512
	Year Ended December 31, 2021
			CRE		CRE
			Owner		Non-owner		Land &		Home		Multi-		Residential		Consumer
	Commercial		Occupied		Occupied		Construction		Equity		Family		Mortgages		and Other		Total
	(Dollars in thousands)
Beginning of period balance	$	11,587	$	8,560	$	16,416	$	2,509	$	1,297	$	2,804	$	943	$	284	$	44,400
Charge-offs		(520)		—		—		—		—		—		—		—		(520)
Recoveries		1,354		16		—		884		93		—		—		197		2,544
Net (charge-offs) recoveries		834		16		—		884		93		—		—		197		2,024
Provision for (recapture of) credit losses on loans		(4,007)		(622)		709		(1,562)		(526)		(8)		3,189		(307)		(3,134)
End of period balance	$	8,414	$	7,954	$	17,125	$	1,831	$	864	$	2,796	$	4,132	$	174	$	43,290

Schedule of nonperforming loans

	December 31, 2023
	Nonaccrual		Nonaccrual			Loans
	with no Specific		with Specific			over 90 Days
	Allowance for		Allowance for			Past Due
	Credit		Credit			and Still
	Losses		Losses			Accruing	Total
	(Dollars in thousands)
Commercial	$	946	$	290	$	889	$	2,125
Real estate:
CRE - Owner Occupied		—		—		—		—
CRE - Non-Owner Occupied		—		—		—		—
Land and construction		4,661		—		—		4,661
Home equity		142		—		—		142
Residential mortgages		779		—		—		779
Total	$	6,528	$	290	$	889	$	7,707

	December 31, 2022
					Restructured
	Nonaccrual		Nonaccrual		and Loans
	with no Specific		with no Specific		over 90 Days
	Allowance for		Allowance for		Past Due
	Credit		Credit		and Still
	Losses		Losses		Accruing		Total
	(Dollars in thousands)
Commercial	$	318	$	324	$	349	$	991
Real estate:
CRE - Owner Occupied		—		—		—		—
CRE - Non-Owner Occupied		—		—		1,336		1,336
Home equity		98		—		—		98
Total	$	416	$	324	$	1,685	$	2,425

Schedule of aging of past due loans by class of loans

	December 31, 2023
	30 - 59		60 - 89		90 Days or
	Days		Days		Greater		Total
	Past Due		Past Due		Past Due		Past Due		Current		Total
	(Dollars in thousands)
Commercial	$	6,688	$	2,030	$	1,264	$	9,982	$	453,796	$	463,778
Real estate:
CRE - Owner Occupied		—		—		—		—		583,253		583,253
CRE - Non-Owner Occupied		1,289		—		—		1,289		1,255,301		1,256,590
Land and construction		955		—		3,706		4,661		135,852		140,513
Home equity		—		—		142		142		118,983		119,125
Multifamily		—		—		—		—		269,734		269,734
Residential mortgages		3,794		510		779		5,083		491,878		496,961
Consumer and other		—		—		—		—		20,919		20,919
Total	$	12,726	$	2,540	$	5,891	$	21,157	$	3,329,716	$	3,350,873

	December 31, 2022
	30 - 59		60 - 89		90 Days or
	Days		Days		Greater		Total
	Past Due		Past Due		Past Due		Past Due		Current		Total
	(Dollars in thousands)
Commercial	$	7,236	$	2,519	$	703	$	10,458	$	523,457	$	533,915
Real estate:
CRE - Owner Occupied		252		—		—		252		614,411		614,663
CRE - Non-Owner Occupied		—		—		1,336		1,336		1,065,032		1,066,368
Land and construction		—		—		—		—		163,577		163,577
Home equity		—		98		—		98		120,626		120,724
Multifamily		—		—		—		—		244,882		244,882
Residential mortgages		4,202		720		—		4,922		532,983		537,905
Consumer and other		—		—		—		—		17,033		17,033
Total	$	11,690	$	3,337	$	2,039	$	17,066	$	3,282,001	$	3,299,067

Summary of loan portfolio by loan type and credit quality classification

														Revolving
														Loans
		Term Loans Amortized Cost Basis by Originated Period as of December 31, 2023												Amortized
	2023		2022		2021		2020		2019		Prior Periods			Cost Basis		Total
	(Dollars in thousands)
Commercial:
Pass	$	99,387	$	25,250	$	19,732	$	14,929	$	11,893	$	22,134	$	258,461	$	451,786
Special Mention		2,107		1,092		41		—		133		1,134		467		4,974
Substandard		4		1,516		—		100		185		3,835		142		5,782
Substandard-Nonaccrual		—		—		349		—		116		771		—		1,236
Total		101,498		27,858		20,122		15,029		12,327		27,874		259,070		463,778
CRE - Owner Occupied:
Pass		32,993		86,688		110,613		68,184		52,885		214,729		10,302		576,394
Special Mention		—		250		3,241		462		—		1,802		—		5,755
Substandard		—		—		—		—		1,100		4		—		1,104
Substandard-Nonaccrual		—		—		—		—		—		—		—		—
Total		32,993		86,938		113,854		68,646		53,985		216,535		10,302		583,253
CRE - Non-Owner Occupied:
Pass		225,505		243,080		267,870		28,315		92,648		370,552		3,199		1,231,169
Special Mention		—		—		—		—		7,493		10,040		—		17,533
Substandard		—		—		—		—		—		7,614		274		7,888
Substandard-Nonaccrual		—		—		—		—		—		—		—		—
Total		225,505		243,080		267,870		28,315		100,141		388,206		3,473		1,256,590
Land and construction:
Pass		40,142		52,862		27,419		9,273		1,864		—		—		131,560
Special Mention		2,163		—		—		—		—		—		—		2,163
Substandard		2,129		—		—		—		—		—		—		2,129
Substandard-Nonaccrual		—		—		3,706		955		—		—		—		4,661
Total		44,434		52,862		31,125		10,228		1,864		—		—		140,513
Home equity:
Pass		—		—		—		—		—		1,463		111,250		112,713
Special Mention		—		—		—		—		—		—		2,110		2,110
Substandard		—		—		—		—		—		—		4,160		4,160
Substandard-Nonaccrual		—		—		—		—		—		—		142		142
Total		—		—		—		—		—		1,463		117,662		119,125
Multifamily:
Pass		47,089		41,112		55,557		5,394		42,129		75,890		355		267,526
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		2,208		—		2,208
Substandard-Nonaccrual		—		—		—		—		—		—		—		—
Total		47,089		41,112		55,557		5,394		42,129		78,098		355		269,734
Residential mortgage:
Pass		1,684		187,417		268,617		1,037		6,861		28,892		—		494,508
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		973		—		—		—		701		—		1,674
Substandard-Nonaccrual		—		779		—		—		—		—		—		779
Total		1,684		189,169		268,617		1,037		6,861		29,593		—		496,961
Consumer and other:
Pass		2,332		1,376		3		—		—		2,089		14,961		20,761
Special Mention		—		—		62		—		—		96		—		158
Substandard		—		—		—		—		—		—		—		—
Substandard-Nonaccrual		—		—		—		—		—		—		—		—
Total		2,332		1,376		65		—		—		2,185		14,961		20,919
Total loans	$	455,535	$	642,395	$	757,210	$	128,649	$	217,307	$	743,954	$	405,823	$	3,350,873
Risk Grades:
Pass	$	449,132	$	637,785	$	749,811	$	127,132	$	208,280	$	715,749	$	398,528	$	3,286,417
Special Mention		4,270		1,342		3,344		462		7,626		13,072		2,577		32,693
Substandard		2,133		2,489		—		100		1,285		14,362		4,576		24,945
Substandard-Nonaccrual		—		779		4,055		955		116		771		142		6,818
Grand Total	$	455,535	$	642,395	$	757,210	$	128,649	$	217,307	$	743,954	$	405,823	$	3,350,873

														Revolving
														Loans
		Term Loans Amortized Cost Basis by Originated Period as of December 31, 2022												Amortized
	2022		2021		2020		2019		2018		Prior Periods			Cost Basis		Total
	(Dollars in thousands)
Commercial:
Pass	$	102,969	$	36,752	$	24,406	$	19,272	$	12,089	$	21,127	$	293,546	$	510,161
Special Mention		3,408		1,060		192		1,123		—		6,031		5,551		17,365
Substandard		4		—		—		145		—		102		5,496		5,747
Substandard-Nonaccrual		—		279		—		—		330		33		—		642
Total		106,381		38,091		24,598		20,540		12,419		27,293		304,593		533,915
CRE - Owner Occupied:
Pass		92,689		116,266		75,007		59,887		58,180		194,584		8,758		605,371
Special Mention		—		2,033		867		1,120		—		4,410		—		8,430
Substandard		—		660		—		—		193		9		—		862
Substandard-Nonaccrual		—		—		—		—		—		—		—		—
Total		92,689		118,959		75,874		61,007		58,373		199,003		8,758		614,663
CRE - Non-Owner Occupied:
Pass		239,556		278,051		31,848		101,854		63,905		337,048		3,245		1,055,507
Special Mention		—		—		—		—		—		4,883		—		4,883
Substandard		—		—		—		—		—		5,978		—		5,978
Substandard-Nonaccrual		—		—		—		—		—		—		—		—
Total		239,556		278,051		31,848		101,854		63,905		347,909		3,245		1,066,368
Land and construction:
Pass		62,241		72,847		22,459		6,030		—		—		—		163,577
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Substandard-Nonaccrual		—		—		—		—		—		—		—		—
Total		62,241		72,847		22,459		6,030		—		—		—		163,577
Home equity:
Pass		—		—		—		—		—		44		117,950		117,994
Special Mention		—		—		—		—		—		—		2,346		2,346
Substandard		—		—		—		—		—		144		142		286
Substandard-Nonaccrual		—		98		—		—		—		—				98
Total		—		98		—		—		—		188		120,438		120,724
Multifamily:
Pass		42,111		69,824		4,871		42,412		15,356		66,380		180		241,134
Special Mention		—		—		657		771		—		2,320		—		3,748
Substandard		—		—		—		—		—		—		—		—
Substandard-Nonaccrual		—		—		—		—		—		—		—		—
Total		42,111		69,824		5,528		43,183		15,356		68,700		180		244,882
Residential mortgage:
Pass		191,907		296,270		1,068		6,788		2,724		33,290		—		532,047
Special Mention		—		—		—		1,058		1,482		2,387		—		4,927
Substandard		—		—		—		—		—		931		—		931
Substandard-Nonaccrual		—		—		—		—		—		—		—		—
Total		191,907		296,270		1,068		7,846		4,206		36,608		—		537,905
Consumer and other:
Pass		389		13		—		—		1,364		1,283		13,647		16,696
Special Mention		—		82		—		6		—		—		249		337
Substandard		—		—		—		—		—		—		—		—
Substandard-Nonaccrual		—		—		—		—		—		—		—		—
Total		389		95		—		6		1,364		1,283		13,896		17,033
Total loans	$	735,274	$	874,235	$	161,375	$	240,466	$	155,623	$	680,984	$	451,110	$	3,299,067
Risk Grades:
Pass	$	731,862	$	870,023	$	159,659	$	236,243	$	153,618	$	653,756	$	437,326	$	3,242,487
Special Mention		3,408		3,175		1,716		4,078		1,482		20,031		8,146		42,036
Substandard		4		660		—		145		193		7,164		5,638		13,804
Substandard-Nonaccrual		—		377		—		—		330		33		—		740
Grand Total	$	735,274	$	874,235	$	161,375	$	240,466	$	155,623	$	680,984	$	451,110	$	3,299,067

The following table presents the gross charge-offs by class of loans and year of origination for the year ended December 31, 2023:

		Gross Charge-offs by Originated Period for the Year Ended December 31, 2023												Revolving
	2023		2022		2021		2020		2019		Prior Periods			Loans		Total
	(Dollars in thousands)
Commercial	$	35	$	95	$	—	$	—	$	339	$	281	$	—	$	750
Real estate:
CRE - Owner Occupied		—		—		—		—		—		—		—		—
CRE - Non-Owner Occupied		—		—		—		—		—		—		—		—
Land and construction		—		—		—		—		—		—		—		—
Home equity		—		—		—		—		—		—		246		246
Multifamily		—		—		—		—		—		—		—		—
Residential mortgages		—		—		—		—		—		—		—		—
Consumer and other		—		—		—		—		15		—		—		15
Total	$	35	$	95	$	—	$	—	$	354	$	281	$	246	$	1,011

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

	Year Ended December 31, 2023
									Combination		Combination
									Term		Term
									Extension		Extension		Total
							Interest		and		and		Class of
	Principal		Payment		Term		Rate		Principal		Interest Rate		Financing
	Forgiveness		Delay		Extension		Reduction		Forgiveness		Reduction		Receivables
	(Dollars in thousands)
Commercial	$	—	$	63	$	—	$	—	$	—	$	3	0.01	%
Total	$	—	$	63	$	—	$	—	$	—	$	3	0.01	%

Schedule of performance of loans that have been modified

	Year Ended December 31, 2023
	30 - 59		60 - 89		90 Days or
	Days		Days		Greater		Total
	Past Due		Past Due		Past Due		Past Due
	(Dollars in thousands)
Commercial	$	45	$	1	$	—	$	46
Total	$	45	$	1	$	—	$	46

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

	Year Ended December 31, 2023
			Weighted		Weighted
			Average		Average
			Interest		Term
	Principal		Rate		Extension
	Forgiveness		Reduction		(Months)
	(Dollars in thousands)
Commercial	$	7	0.25	%	14
Total	$	7	0.25	%	14