Loans and Allowance for Credit Losses on Loans (Tables)

3 Months Ended

Mar. 31, 2024

Loans and Allowance for Credit Losses on Loans

Schedule of loans

	March 31,		December 31,
	2024		2023
	(Dollars in thousands)
Loans held-for-investment:
Commercial	$	452,231	$	463,778
Real estate:
CRE - owner occupied		585,031		583,253
CRE - non-owner occupied		1,271,184		1,256,590
Land and construction		129,712		140,513
Home equity		122,794		119,125
Multifamily		269,263		269,734
Residential mortgages		490,035		496,961
Consumer and other		16,439		20,919
Loans		3,336,689		3,350,873
Deferred loan fees, net		(587)		(495)
Loans, net of deferred fees		3,336,102		3,350,378
Allowance for credit losses on loans		(47,888)		(47,958)
Loans, net	$	3,288,214	$	3,302,420

Schedule of changes in allowance for loan (credit) losses

	Three Months Ended March 31, 2024
			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	$	5,853	$	5,121	$	25,323	$	2,352	$	644	$	5,053	$	3,425	$	187	$	47,958
Charge-offs		(358)		—		—		—		—		—		—		—		(358)
Recoveries		82		4		—		—		18		—		—		—		104
Net (charge-offs) recoveries		(276)		4		—		—		18		—		—		—		(254)
Provision for (recapture of)
credit losses on loans		(548)		16		1,086		(470)		91		(744)		774		(21)		184
End of period balance	$	5,029	$	5,141	$	26,409	$	1,882	$	753	$	4,309	$	4,199	$	166	$	47,888

	Three Months Ended March 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		(134)		—		—		—		(246)		—		—		—		(380)
Recoveries		80		4		—		—		25		—		—		—		109
Net (charge-offs) recoveries		(54)		4		—		—		(221)		—		—		—		(271)
Provision for (recapture of)
credit losses on loans		(29)		(302)		542		235		243		1,026		(1,711)		28		32
End of period balance	$	6,534	$	5,453	$	22,677	$	3,176	$	688	$	4,392	$	4,196	$	157	$	47,273

Schedule of nonperforming loans

	March 31, 2024
	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	$	924	$	203	$	1,443	$	2,570
Real estate:
CRE - Owner Occupied		—		—		—		—
CRE - Non-Owner Occupied		—		—		—		—
Land and construction		4,673		—		—		4,673
Home equity		120		—		—		120
Residential mortgages		—		—		508		508
Total	$	5,717	$	203	$	1,951	$	7,871

	December 31, 2023
	Nonaccrual		Nonaccrual		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	$	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

Schedule of aging of past due loans by class of loans

	March 31, 2024
	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	$	3,522	$	1,180	$	1,955	$	6,657	$	445,574	$	452,231
Real estate:
CRE - Owner Occupied		—		—		—		—		585,031		585,031
CRE - Non-Owner Occupied		5,662		—		—		5,662		1,265,522		1,271,184
Land and construction		3,550		—		4,672		8,222		121,490		129,712
Home equity		441		—				441		122,353		122,794
Multifamily		—		—		—		—		269,263		269,263
Residential mortgages		—		—		508		508		489,527		490,035
Consumer and other		—		—		—		—		16,439		16,439
Total	$	13,175	$	1,180	$	7,135	$	21,490	$	3,315,199	$	3,336,689

	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

	March 31,		December 31,
	2024		2023
	(Dollars in thousands)
Past due nonaccrual loans	$	5,184	$	6,100
Current nonaccrual loans		736		718
Total nonaccrual loans	$	5,920	$	6,818

Summary of loan portfolio by loan type and credit quality classification

														Revolving
														Loans
		Term Loans Amortized Cost Basis by Originated Period as of March 31, 2024												Amortized
	3/31/2024		2023		2022		2021		2020		Prior Periods			Cost Basis		Total
	(Dollars in thousands)
Commercial:
Pass	$	74,006	$	36,626	$	23,777	$	18,808	$	13,368	$	30,291	$	239,157	$	436,033
Special Mention		2,020		82		1,062		38		—		3,272		2,471		8,945
Substandard		4		—		1,478		—		97		4,490		57		6,126
Substandard-Nonaccrual		—		—		—		343		—		784		—		1,127
Total		76,030		36,708		26,317		19,189		13,465		38,837		241,685		452,231
CRE - Owner Occupied:
Pass		12,117		32,194		84,349		109,741		64,592		262,613		10,107		575,713
Special Mention		—		—		249		3,219		457		1,251		—		5,176
Substandard		—		—		—		—		3,042		1,100		—		4,142
Substandard-Nonaccrual		—		—		—		—		—		—		—		—
Total		12,117		32,194		84,598		112,960		68,091		264,964		10,107		585,031
CRE - Non-Owner Occupied:
Pass		21,427		226,112		240,250		260,618		27,717		465,826		5,116		1,247,066
Special Mention		—		—		—		708		—		10,958		—		11,666
Substandard		—		—		—		4,564		—		7,562		326		12,452
Substandard-Nonaccrual		—		—		—		—		—		—		—		—
Total		21,427		226,112		240,250		265,890		27,717		484,346		5,442		1,271,184
Land and construction:
Pass		9,596		38,701		39,325		23,083		9,246		1,844		—		121,795
Special Mention		—		—		—		—		—		2,163		—		2,163
Substandard		—		—		—		—		—		1,081		—		1,081
Substandard-Nonaccrual		—		—		—		3,706		967		—		—		4,673
Total		9,596		38,701		39,325		26,789		10,213		5,088		—		129,712
Home equity:
Pass		—		—		—		—		—		2,055		114,967		117,022
Special Mention		—		—		—		—		—		—		2,256		2,256
Substandard		—		—		—		—		—		—		3,396		3,396
Substandard-Nonaccrual		—		—		—		—		—		120		—		120
Total		—		—		—		—		—		2,175		120,619		122,794
Multifamily:
Pass		4,523		47,031		40,893		54,977		5,358		116,026		455		269,263
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Substandard-Nonaccrual		—		—		—		—		—		—		—		—
Total		4,523		47,031		40,893		54,977		5,358		116,026		455		269,263
Residential mortgage:
Pass		—		1,678		178,340		271,180		1,030		34,206		—		486,434
Special Mention		—		—		1,326		—		—		—		—		1,326
Substandard		—		—		764		—		—		1,511		—		2,275
Substandard-Nonaccrual		—		—		—		—		—		—		—		—
Total		—		1,678		180,430		271,180		1,030		35,717		—		490,035
Consumer and other:
Pass		—		1,566		1,373		58		—		2,060		10,588		15,645
Special Mention		—		705		—		—		—		89		—		794
Substandard		—		—		—		—		—		—		—		—
Substandard-Nonaccrual		—		—		—		—		—		—		—		—
Total		—		2,271		1,373		58		—		2,149		10,588		16,439
Total loans	$	123,693	$	384,695	$	613,186	$	751,043	$	125,874	$	949,302	$	388,896	$	3,336,689
Risk Grades:
Pass	$	121,669	$	383,908	$	608,307	$	738,465	$	121,311	$	914,921	$	380,390	$	3,268,971
Special Mention		2,020		787		2,637		3,965		457		17,733		4,727		32,326
Substandard		4		—		2,242		4,564		3,139		15,744		3,779		29,472
Substandard-Nonaccrual		—		—		—		4,049		967		904		—		5,920
Grand Total	$	123,693	$	384,695	$	613,186	$	751,043	$	125,874	$	949,302	$	388,896	$	3,336,689

														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

		Gross Charge-offs by Originated Period for the Three Months Ended March 31, 2024
											Prior			Revolving
	3/31/2024		2023		2022		2021		2020		Periods			Loans		Total
	(Dollars in thousands)
Commercial	$	—	$	—	$	—	$	—	$	—	$	358	$	—	$	358
Real estate:
CRE - Owner Occupied		—		—		—		—		—		—		—		—
CRE - Non-Owner Occupied		—		—		—		—		—		—		—		—
Land and construction		—		—		—		—		—		—		—		—
Home equity		—		—		—		—		—		—		—		—
Multifamily		—		—		—		—		—		—		—		—
Residential mortgages		—		—		—		—		—		—		—		—
Consumer and other		—		—		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	—	$	—	$	358	$	—	$	358

		Gross Charge-offs by Originated Period for the Three Months Ended March 31, 2023
											Prior			Revolving
	03/31/2023		2022		2021		2020		2019		Periods			Loans		Total
	(Dollars in thousands)
Commercial	$	—	$	—	$	—	$	—	$	49	$	85	$	—	$	134
Real estate:
CRE - Owner Occupied		—		—		—		—		—		—		—		—
CRE - Non-Owner Occupied		—		—		—		—		—		—		—		—
Land and construction		—		—		—		—		—		—		—		—
Home equity		—		—		—		—		—		—		246		246
Multifamily		—		—		—		—		—		—		—		—
Residential mortgages		—		—		—		—		—		—		—		—
Consumer and other		—		—		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	—	$	49	$	85	$	246	$	380

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

	Three Months Ended March 31, 2024
									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	$	—	$	—	$	33	$	—	$	—	$	—	0.01	%
Total	$	—	$	—	$	33	$	—	$	—	$	—	0.01	%

	Three Months Ended March 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	$	6	$	88	$	36	$	—	$	—	$	—	0.03	%
Total	$	6	$	88	$	36	$	—	$	—	$	—	0.03	%

Schedule of performance of loans that have been modified

	Three Months Ended March 31, 2024
	30 - 59		60 - 89		90 Days or
	Days		Days		Greater		Total
	Past Due		Past Due		Past Due		Past Due
	(Dollars in thousands)
Commercial	$	—	$	—	$	—	$	—
Total	$	—	$	—	$	—	$	—

	Three Months Ended March 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	$	—	$	36	$	6	$	42
Total	$	—	$	36	$	6	$	42

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

	Three Months Ended March 31, 2024
			Weighted		Weighted
			Average		Average
			Interest		Term
	Principal		Rate		Extension
	Forgiveness		Reduction		(Months)
	(Dollars in thousands)
Commercial	$	—	—	%	10
Total	$	—	—	%	10

	Three Months Ended March 31, 2023
			Weighted		Weighted
			Average		Average
			Interest		Term
	Principal		Rate		Extension
	Forgiveness		Reduction		(Months)
	(Dollars in thousands)
Commercial	$	3	—	%	9
Total	$	3	—	%	9