Loans and Allowance for Credit Losses on Loans (Tables)

6 Months Ended

Jun. 30, 2024

Loans and Allowance for Credit Losses on Loans

Schedule of loans

	June 30,		December 31,
	2024		2023
	(Dollars in thousands)
Loans held-for-investment:
Commercial	$	477,929	$	463,778
Real estate:
CRE - owner occupied		594,504		583,253
CRE - non-owner occupied		1,283,323		1,256,590
Land and construction		125,374		140,513
Home equity		126,562		119,125
Multifamily		268,968		269,734
Residential mortgages		484,809		496,961
Consumer and other		18,758		20,919
Loans		3,380,227		3,350,873
Deferred loan fees, net		(434)		(495)
Loans, net of deferred fees		3,379,793		3,350,378
Allowance for credit losses on loans		(47,954)		(47,958)
Loans, net	$	3,331,839	$	3,302,420

Schedule of changes in allowance for loan (credit) losses

	Three Months Ended June 30, 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	$	5,029	$	5,141	$	26,409	$	1,882	$	753	$	4,309	$	4,199	$	166	$	47,888
Charge-offs		(510)		—		—		—		—		—		—		—		(510)
Recoveries		64		6		—		—		35		—		—		—		105
Net (charge-offs) recoveries		(446)		6		—		—		35		—		—		—		(405)
Provision for (recapture of)
credit losses on loans		427		197		438		(359)		26		(40)		(239)		21		471
End of period balance	$	5,010	$	5,344	$	26,847	$	1,523	$	814	$	4,269	$	3,960	$	187	$	47,954

	Three Months Ended June 30, 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	$	6,534	$	5,453	$	22,677	$	3,176	$	688	$	4,392	$	4,196	$	157	$	47,273
Charge-offs		(24)		—		—		—		—		—		—		—		(24)
Recoveries		108		4		—		—		182		—		—		—		294
Net recoveries		84		4		—		—		182		—		—		—		270
Provision for (recapture of)
credit losses on loans		(68)		6		846		(306)		(140)		(9)		(67)		(2)		260
End of period balance	$	6,550	$	5,463	$	23,523	$	2,870	$	730	$	4,383	$	4,129	$	155	$	47,803

	Six Months Ended June 30, 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		(868)		—		—		—		—		—		—		—		(868)
Recoveries		146		10		—		—		53		—		—		—		209
Net (charge-offs) recoveries		(722)		10		—		—		53		—		—		—		(659)
Provision for (recapture of)
credit losses on loans		(121)		213		1,524		(829)		117		(784)		535		—		655
End of period balance	$	5,010	$	5,344	$	26,847	$	1,523	$	814	$	4,269	$	3,960	$	187	$	47,954

	Six Months Ended June 30, 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		(158)		—		—		—		(246)		—		—		—		(404)
Recoveries		188		8		—		—		207		—		—		—		403
Net (charge-offs) recoveries		30		8		—		—		(39)		—		—		—		(1)
Provision for (recapture of)
credit losses on loans		(97)		(296)		1,388		(71)		103		1,017		(1,778)		26		292
End of period balance	$	6,550	$	5,463	$	23,523	$	2,870	$	730	$	4,383	$	4,129	$	155	$	47,803

Schedule of nonperforming loans

	June 30, 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	$	737	$	163	$	248	$	1,148
Real estate:
CRE - Owner Occupied		—		—		—		—
CRE - Non-Owner Occupied		—		—		—		—
Land and construction		4,774		—		—		4,774
Home equity		108		—		—		108
Total	$	5,619	$	163	$	248	$	6,030

	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

	June 30, 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	$	4,445	$	1,747	$	586	$	6,778	$	471,151	$	477,929
Real estate:
CRE - Owner Occupied		—		—		—		—		594,504		594,504
CRE - Non-Owner Occupied		1,272		4,548		—		5,820		1,277,503		1,283,323
Land and construction		—		1,081		4,774		5,855		119,519		125,374
Home equity		650		—				650		125,912		126,562
Multifamily		—		—		—		—		268,968		268,968
Residential mortgages		—		—				—		484,809		484,809
Consumer and other		—		—		—		—		18,758		18,758
Total	$	6,367	$	7,376	$	5,360	$	19,103	$	3,361,124	$	3,380,227

	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

	June 30,		December 31,
	2024		2023
	(Dollars in thousands)
Past due nonaccrual loans	$	5,405	$	6,100
Current nonaccrual loans		377		718
Total nonaccrual loans	$	5,782	$	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 June 30, 2024												Amortized
	6/30/2024		2023		2022		2021		2020		Prior Periods			Cost Basis		Total
	(Dollars in thousands)
Commercial:
Pass	$	82,867	$	29,737	$	22,428	$	18,622	$	12,239	$	33,165	$	270,611	$	469,669
Special Mention		567		77		390		146		—		222		966		2,368
Substandard		—		—		609		—		—		4,383		—		4,992
Substandard-Nonaccrual		—		—		—		330		—		570		—		900
Total		83,434		29,814		23,427		19,098		12,239		38,340		271,577		477,929
CRE - Owner Occupied:
Pass		27,590		32,054		83,628		108,417		67,581		257,152		9,759		586,181
Special Mention		—		—		247		3,196		453		1,234		—		5,130
Substandard		—		—		—		—		3,193		—		—		3,193
Substandard-Nonaccrual		—		—		—		—		—		—		—		—
Total		27,590		32,054		83,875		111,613		71,227		258,386		9,759		594,504
CRE - Non-Owner Occupied:
Pass		54,642		224,705		238,696		258,644		27,502		456,023		4,237		1,264,449
Special Mention		—		—		—		701		—		1,288		—		1,989
Substandard		—		—		—		4,548		—		11,843		494		16,885
Substandard-Nonaccrual		—		—		—		—		—		—		—		—
Total		54,642		224,705		238,696		263,893		27,502		469,154		4,731		1,283,323
Land and construction:
Pass		16,173		44,420		39,564		16,984		215		—		—		117,356
Special Mention		—		—		—		—		—		2,163		—		2,163
Substandard		—		—		—		—		—		1,081		—		1,081
Substandard-Nonaccrual		—		—		—		3,808		966		—		—		4,774
Total		16,173		44,420		39,564		20,792		1,181		3,244		—		125,374
Home equity:
Pass		—		—		—		—		—		2,320		120,387		122,707
Special Mention		—		—		—		—		—		—		2,256		2,256
Substandard		—		—		—		—		—		—		1,491		1,491
Substandard-Nonaccrual		—		—		—		—		—		108		—		108
Total		—		—		—		—		—		2,428		124,134		126,562
Multifamily:
Pass		6,644		46,735		40,084		54,650		5,322		114,988		545		268,968
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Substandard-Nonaccrual		—		—		—		—		—		—		—		—
Total		6,644		46,735		40,084		54,650		5,322		114,988		545		268,968
Residential mortgage:
Pass		2,376		1,672		185,298		259,575		1,022		34,685		—		484,628
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		181		—		181
Substandard-Nonaccrual		—		—		—		—		—		—		—		—
Total		2,376		1,672		185,298		259,575		1,022		34,866		—		484,809
Consumer and other:
Pass		—		701		1,369		53		—		2,027		13,544		17,694
Special Mention		—		681		—		—		—		83		300		1,064
Substandard		—		—		—		—		—		—		—		—
Substandard-Nonaccrual		—		—		—		—		—		—		—		—
Total		—		1,382		1,369		53		—		2,110		13,844		18,758
Total loans	$	190,859	$	380,782	$	612,313	$	729,674	$	118,493	$	923,516	$	424,590	$	3,380,227
Risk Grades:
Pass	$	190,292	$	380,024	$	611,067	$	716,945	$	113,881	$	900,360	$	419,083	$	3,331,652
Special Mention		567		758		637		4,043		453		4,990		3,522		14,970
Substandard		—		—		609		4,548		3,193		17,488		1,985		27,823
Substandard-Nonaccrual		—		—		—		4,138		966		678		—		5,782
Grand Total	$	190,859	$	380,782	$	612,313	$	729,674	$	118,493	$	923,516	$	424,590	$	3,380,227

														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 June 30, 2024
											Prior			Revolving
	6/30/2024		2023		2022		2021		2020		Periods			Loans		Total
	(Dollars in thousands)
Commercial	$	—	$	416	$	—	$	—	$	—	$	94	$	—	$	510
Real estate:
CRE - Owner Occupied		—		—		—		—		—		—		—		—
CRE - Non-Owner Occupied		—		—		—		—		—		—		—		—
Land and construction		—		—		—		—		—		—		—		—
Home equity		—		—		—		—		—		—		—		—
Multifamily		—		—		—		—		—		—		—		—
Residential mortgages		—		—		—		—		—		—		—		—
Consumer and other		—		—		—		—		—		—		—		—
Total	$	—	$	416	$	—	$	—	$	—	$	94	$	—	$	510

		Gross Charge-offs by Originated Period for the Three Months Ended June 30, 2023
											Prior			Revolving
	6/30/2023		2022		2021		2020		2019		Periods			Loans		Total
	(Dollars in thousands)
Commercial	$	—	$	4	$	—	$	—	$	—	$	20	$	—	$	24
Real estate:
CRE - Owner Occupied		—		—		—		—		—		—		—		—
CRE - Non-Owner Occupied		—		—		—		—		—		—		—		—
Land and construction		—		—		—		—		—		—		—		—
Home equity		—		—		—		—		—		—		—		—
Multifamily		—		—		—		—		—		—		—		—
Residential mortgages		—		—		—		—		—		—		—		—
Consumer and other		—		—		—		—		—		—		—		—
Total	$	—	$	4	$	—	$	—	$	—	$	20	$	—	$	24

		Gross Charge-offs by Originated Period for the Six Months Ended June 30, 2024
											Prior			Revolving
	06/30/2024		2023		2022		2021		2020		Periods			Loans		Total
	(Dollars in thousands)
Commercial	$	—	$	416	$	—	$	—	$	—	$	452	$	—	$	868
Real estate:
CRE - Owner Occupied		—		—		—		—		—		—		—		—
CRE - Non-Owner Occupied		—		—		—		—		—		—		—		—
Land and construction		—		—		—		—		—		—		—		—
Home equity		—		—		—		—		—		—		—		—
Multifamily		—		—		—		—		—		—		—		—
Residential mortgages		—		—		—		—		—		—		—		—
Consumer and other		—		—		—		—		—		—		—		—
Total	$	—	$	416	$	—	$	—	$	—	$	452	$	—	$	868

		Gross Charge-offs by Originated Period for the Six Months Ended June 30, 2023
											Prior			Revolving
	06/30/2023		2022		2021		2020		2019		Periods			Loans		Total
	(Dollars in thousands)
Commercial	$	—	$	4	$	—	$	—	$	49	$	105	$	—	$	158
Real estate:
CRE - Owner Occupied		—		—		—		—		—		—		—		—
CRE - Non-Owner Occupied		—		—		—		—		—		—		—		—
Land and construction		—		—		—		—		—		—		—		—
Home equity		—		—		—		—		—		—		246		246
Multifamily		—		—		—		—		—		—		—		—
Residential mortgages		—		—		—		—		—		—		—		—
Consumer and other		—		—		—		—		—		—		—		—
Total	$	—	$	4	$	—	$	—	$	49	$	105	$	246	$	404

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

Three Months Ended June 30, 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

$

—

$

—

$

—

$

—

$

—

$

—

—

%

Total

$

—

$

—

$

—

$

—

$

—

$

—

—

%

	Three Months Ended June 30, 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	$	—	$	22	$	—	$	—	$	—	$	28	0.01	%
Total	$	—	$	22	$	—	$	—	$	—	$	28	0.01	%

	Six Months Ended June 30, 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	%

	Six Months Ended June 30, 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	$	3	$	110	$	36	$	—	$	—	$	28	0.04	%
Total	$	3	$	110	$	36	$	—	$	—	$	28	0.04	%

Schedule of performance of loans that have been modified

	Three Months Ended June 30, 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 June 30, 2023
	30 - 59		60 - 89		90 Days or
	Days		Days		Greater		Total
	Past Due		Past Due		Past Due		Past Due
	(Dollars in thousands)
Commercial	$	22	$	—	$	28	$	50
Total	$	22	$	—	$	28	$	50

	Six Months Ended June 30, 2024
	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

	Six Months Ended June 30, 2023
	30 - 59		60 - 89		90 Days or
	Days		Days		Greater		Total
	Past Due		Past Due		Past Due		Past Due
	(Dollars in thousands)
Commercial	$	22	$	36	$	34	$	92
Total	$	22	$	36	$	34	$	92

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

	Three Months Ended June 30, 2024
			Weighted		Weighted
			Average		Average
			Interest		Term
	Principal		Rate		Extension
	Forgiveness		Reduction		(Months)
	(Dollars in thousands)
Commercial	$	—	—	%	—
Total	$	—	—	%	—

	Three Months Ended June 30, 2023
			Weighted		Weighted
			Average		Average
			Interest		Term
	Principal		Rate		Extension
	Forgiveness		Reduction		(Months)
	(Dollars in thousands)
Commercial	$	—	0.25	%	15
Total	$	—	0.25	%	15

	Six Months Ended June 30, 2024
			Weighted		Weighted
			Average		Average
			Interest		Term
	Principal		Rate		Extension
	Forgiveness		Reduction		(Months)
	(Dollars in thousands)
Commercial	$	—	—	%	10
Total	$	—	—	%	10

	Six Months Ended June 30, 2023
			Weighted		Weighted
			Average		Average
			Interest		Term
	Principal		Rate		Extension
	Forgiveness		Reduction		(Months)
	(Dollars in thousands)
Commercial	$	3	0.25	%	14
Total	$	3	0.25	%	14