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Loans and allowance for credit losses (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Loans Outstanding by Class of Financing Receivable

Loans outstanding as of December 31, 2021 and 2020, by class of financing receivable are as follows:


	December 31,
	2021		2020
Commercial and industrial (1)	$	1,290,565	$	1,346,122
Construction	1,327,659		1,222,220
Residential real estate:
1-to-4 family mortgage	1,270,467		1,089,270
Residential line of credit	383,039		408,211
Multi-family mortgage	326,551		175,676
Commercial real estate:
Owner occupied	951,582		924,841
Non-owner occupied	1,730,165		1,598,979
Consumer and other	324,634		317,640
Gross loans	7,604,662		7,082,959
Less: Allowance for credit losses	(125,559)		(170,389)
Net loans	$	7,479,103	$	6,912,570

(1)Includes $3,990 and $212,645 of loans originated as part of the Paycheck Protection Program as of December 31, 2021 and 2020, respectively. PPP loans are federally guaranteed as part of the CARES Act, provided PPP loan recipients receive loan forgiveness under the SBA regulations. As such, there is minimal credit risk associated with these loans.

Schedule of Changes in Allowance for Credit Losses by Class of Financing Receivable

The following provide the changes in the allowance for credit losses by class of financing receivable for the years ended December 31, 2021, 2020, and 2019:


	Commercial and industrial		Construction		1-to-4 family residential mortgage		Residential line of credit		Multi-family residential mortgage		Commercial real estate owner occupied		Commercial real estate non-owner occupied		Consumer and other		Total








Year Ended December 31, 2021
Beginning balance - December 31, 2020	$	14,748	$	58,477	$	19,220	$	10,534	$	7,174	$	4,849	$	44,147	$	11,240	$	170,389


Provision for credit losses	4,178		(29,874)		(87)		(4,728)		(197)		7,588		(16,813)		938		(38,995)
Recoveries of loans previously charged-off	861		3		125		115		—		156		—		773		2,033
Loans charged off	(4,036)		(30)		(154)		(18)		(1)		—		(1,566)		(2,063)		(7,868)


Ending balance - December 31, 2021	$	15,751	$	28,576	$	19,104	$	5,903	$	6,976	$	12,593	$	25,768	$	10,888	$	125,559


	Commercial and industrial		Construction		1-to-4 family residential mortgage		Residential line of credit		Multi-family residential mortgage		Commercial real estate owner occupied		Commercial real estate non-owner occupied		Consumer and other		Total







Year Ended December 31, 2020
Beginning balance - December 31, 2019	$	4,805	$	10,194	$	3,112	$	752	$	544	$	4,109	$	4,621	$	3,002	$	31,139
Impact of adopting ASC 326 on non-purchased credit deteriorated loans	5,300		1,533		7,920		3,461		340		1,879		6,822		3,633		30,888
Impact of adopting ASC 326 on purchased credit deteriorated loans	82		150		421		(3)		—		162		184		(438)		558
Provision for credit losses	13,830		40,807		6,408		5,649		5,506		(1,739)		17,789		6,356		94,606
Recoveries of loans previously charged-off	1,712		205		122		125		—		83		—		756		3,003
Loans charged off	(11,735)		(18)		(403)		(22)		—		(304)		(711)		(2,112)		(15,305)
Initial allowance on loans purchased with deteriorated credit quality	754		5,606		1,640		572		784		659		15,442		43		25,500

Ending balance - December 31, 2020	$	14,748	$	58,477	$	19,220	$	10,534	$	7,174	$	4,849	$	44,147	$	11,240	$	170,389


	Commercial and industrial		Construction		1-to-4 family residential mortgage		Residential line of credit		Multi-family residential mortgage		Commercial real estate owner occupied		Commercial real estate non-owner occupied		Consumer and other		Total







Year Ended December 31, 2019
Beginning balance - December 31, 2018	$	5,348	$	9,729	$	3,428	$	811	$	566	$	3,132	$	4,149	$	1,769	$	28,932
Provision for loan losses	2,251		454		(175)		112		(22)		869		484		3,080		7,053
Recoveries of loans previously charged-off	136		11		79		138		—		108		—		634		1,106
Loans charged off	(2,930)		—		(220)		(309)		—		—		(12)		(2,481)		(5,952)

Ending balance - December 31, 2019	$	4,805	$	10,194	$	3,112	$	752	$	544	$	4,109	$	4,621	$	3,002	$	31,139

Schedule of Credit Quality of Loan Portfolio by Year of Origination

The following tables present the credit quality of our loan portfolio by year of origination as of December 31, 2021 and 2020. Revolving loans are presented separately. Management considers the guidance in ASC 310-20 when determining whether a modification, extension, or renewal constitutes a current period origination. Generally, current period renewals of credit are reunderwritten at the point of renewal and considered current period originations for the purposes of the tables below.


As of December 31, 2021
	Term Loans
	Amortized Cost Basis by Origination Year
	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Total
Commercial and industrial
Pass	$	273,232	$	95,279	$	140,938	$	52,162	$	33,997	$	57,020	$	596,667	$	1,249,295
Special Mention	79		9		949		632		3		1,519		12,367		15,558
Classified	918		2,391		2,376		3,089		3,370		6,425		7,143		25,712

Total	274,229		97,679		144,263		55,883		37,370		64,964		616,177		1,290,565

Construction
Pass	677,258		280,828		135,768		23,916		15,313		67,818		117,176		1,318,077
Special Mention	62		184		—		—		1,208		1,384		—		2,838
Classified	—		—		2,922		2,882		3		737		200		6,744

Total	677,320		281,012		138,690		26,798		16,524		69,939		117,376		1,327,659

Residential real estate:
1-to-4 family mortgage
Pass	519,946		202,299		119,915		99,479		107,214		194,088		—		1,242,941
Special Mention	736		1,423		877		406		1,166		1,609		—		6,217
Classified	2,083		4,703		1,960		2,707		2,472		7,384		—		21,309

Total	522,765		208,425		122,752		102,592		110,852		203,081		—		1,270,467
Residential line of credit
Pass	—		—		—		—		—		—		377,989		377,989
Special Mention	—		—		—		—		—		—		343		343
Classified	—		—		—		—		—		—		4,707		4,707

Total	—		—		—		—		—		—		383,039		383,039

Multi-family mortgage
Pass	166,576		32,242		64,345		7,124		5,602		38,526		10,891		325,306
Special Mention	—		—		—		—		—		—		—		—
Classified	—		—		—		—		—		1,245		—		1,245

Total	166,576		32,242		64,345		7,124		5,602		39,771		10,891		326,551


Commercial real estate:
Owner occupied
Pass	170,773		131,471		174,257		83,698		69,939		236,998		57,123		924,259
Special Mention	—		—		1,502		3,541		885		2,555		213		8,696
Classified	—		—		3,102		768		3,295		9,616		1,846		18,627

Total	170,773		131,471		178,861		88,007		74,119		249,169		59,182		951,582

Non-owner occupied
Pass	462,478		154,048		165,917		264,855		170,602		414,859		46,541		1,679,300
Special Mention	—		—		3,747		3,388		—		969		—		8,104
Classified	—		—		1,898		23,849		1,506		15,508		—		42,761

Total	462,478		154,048		171,562		292,092		172,108		431,336		46,541		1,730,165


As of December 31, 2021
	Term Loans
	Amortized Cost Basis by Origination Year
	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Total
Consumer and other loans
Pass	83,022		55,343		38,495		33,257		21,756		73,016		14,089		318,978
Special Mention	—		—		9		—		—		311		—		320
Classified	87		125		322		988		961		2,417		436		5,336

Total	83,109		55,468		38,826		34,245		22,717		75,744		14,525		324,634

Total Loans
Pass	2,353,285		951,510		839,635		564,491		424,423		1,082,325		1,220,476		7,436,145
Special Mention	877		1,616		7,084		7,967		3,262		8,347		12,923		42,076
Classified	3,088		7,219		12,580		34,283		11,607		43,332		14,332		126,441

Total	$	2,357,250	$	960,345	$	859,299	$	606,741	$	439,292	$	1,134,004	$	1,247,731	$	7,604,662


As of December 31, 2020
	Term Loans
	Amortized Cost Basis by Origination Year
	2020		2019		2018		2017		2016		Prior		Revolving Loans Amortized Cost Basis		Total
Commercial and industrial
Pass	$	339,074	$	185,636	$	70,549	$	59,917	$	37,573	$	42,685	$	540,960	$	1,276,394
Special Mention	231		824		561		445		915		2,580		24,826		30,382
Classified	2,501		2,688		11,227		4,425		6,582		1,277		10,646		39,346

Total	341,806		189,148		82,337		64,787		45,070		46,542		576,432		1,346,122

Construction
Pass	461,715		390,443		86,490		52,942		40,907		62,890		112,004		1,207,391
Special Mention	469		1,485		2,197		1,221		729		13		—		6,114
Classified	573		1,755		3,178		141		—		3,068		—		8,715

Total	462,757		393,683		91,865		54,304		41,636		65,971		112,004		1,222,220

Residential real estate:
1-to-4 family mortgage
Pass	283,107		176,711		164,499		157,731		111,194		162,051		—		1,055,293
Special Mention	1,423		1,829		1,209		753		721		3,865		—		9,800
Classified	448		1,428		3,806		5,473		3,622		9,400		—		24,177

Total	284,978		179,968		169,514		163,957		115,537		175,316		—		1,089,270

Residential line of credit
Pass	—		—		—		—		—		—		400,206		400,206
Special Mention	—		—		—		—		—		—		2,653		2,653
Classified	—		—		—		—		—		—		5,352		5,352

Total	—		—		—		—		—		—		408,211		408,211

Multi-family mortgage
Pass	29,006		13,446		11,843		46,561		28,330		35,339		11,094		175,619
Special Mention	—		—		—		—		—		—		—		—
Classified	—		—		—		—		—		57		—		57

Total	29,006		13,446		11,843		46,561		28,330		35,396		11,094		175,676


Commercial real estate:
Owner occupied
Pass	140,904		179,500		97,577		94,659		76,539		224,108		53,451		866,738
Special Mention	967		1,356		4,251		16,173		6,101		2,466		230		31,544
Classified	44		1,785		2,423		6,074		274		11,226		4,733		26,559

Total	141,915		182,641		104,251		116,906		82,914		237,800		58,414		924,841

Non-owner occupied
Pass	166,962		229,442		342,640		221,149		290,163		272,184		38,820		1,561,360
Special Mention	—		1,500		6,672		—		207		8,445		—		16,824
Classified	—		2,210		1,502		—		—		17,083		—		20,795

Total	166,962		233,152		350,814		221,149		290,370		297,712		38,820		1,598,979

Consumer and other loans
Pass	89,625		52,839		39,725		27,201		43,503		37,673		14,817		305,383
Special Mention	281		797		1,588		468		526		1,364		11		5,035
Classified	151		565		1,434		1,161		935		2,308		668		7,222

Total	90,057		54,201		42,747		28,830		44,964		41,345		15,496		317,640


As of December 31, 2020
	Term Loans
	Amortized Cost Basis by Origination Year
	2020		2019		2018		2017		2016		Prior		Revolving Loans Amortized Cost Basis		Total
Total Loans
Pass	1,510,393		1,228,017		813,323		660,160		628,209		836,930		1,171,352		6,848,384
Special Mention	3,371		7,791		16,478		19,060		9,199		18,733		27,720		102,352
Classified	3,717		10,431		23,570		17,274		11,413		44,419		21,399		132,223

Total	$	1,517,481	$	1,246,239	$	853,371	$	696,494	$	648,821	$	900,082	$	1,220,471	$	7,082,959

Schedule of Analysis of Aging by Class of Financing Receivable

The following tables represent an analysis of the aging by class of financing receivable as of December 31, 2021 and 2020:


December 31, 2021	30-89 days past due		90 days or more and accruing interest		Non-accrual loans		Loans current on payments and accruing interest		Total
Commercial and industrial	$	1,030	$	63	$	1,520	$	1,287,952	$	1,290,565
Construction	4,852		718		3,622		1,318,467		1,327,659
Residential real estate:
1-to-4 family mortgage	11,007		9,363		4,593		1,245,504		1,270,467
Residential line of credit	319		—		1,736		380,984		383,039
Multi-family mortgage	—		—		49		326,502		326,551
Commercial real estate:
Owner occupied	1,417		—		6,710		943,455		951,582
Non-owner occupied	427		—		14,084		1,715,654		1,730,165
Consumer and other	7,398		1,591		3,254		312,391		324,634
Total	$	26,450	$	11,735	$	35,568	$	7,530,909	$	7,604,662


December 31, 2020	30-89 days past due		90 days or more and accruing interest		Non-accrual loans		Loans current on payments and accruing interest		Total
Commercial and industrial	$	3,297	$	330	$	16,005	$	1,326,490	$	1,346,122
Construction	7,607		573		4,053		1,209,987		1,222,220
Residential real estate:
1-to-4 family mortgage	7,058		10,470		5,923		1,065,819		1,089,270
Residential line of credit	3,551		239		1,757		402,664		408,211
Multi-family mortgage	—		57		—		175,619		175,676
Commercial real estate:
Owner occupied	98		—		7,948		916,795		924,841
Non-owner occupied	915		—		12,471		1,585,593		1,598,979
Consumer and other	4,469		2,027		2,603		308,541		317,640
Total	$	26,995	$	13,696	$	50,760	$	6,991,508	$	7,082,959

Schedule of Amortized Cost, Related Allowance and Interest Income of Non-accrual Loans

The following tables provide the amortized cost basis of loans on non-accrual status, as well as any related allowance and interest income as of and for the year ended December 31, 2021 and 2020 by class of financing receivable.



December 31, 2021	Non-accrual with no related allowance		Non-accrual with related allowance		Related allowance		Year to date Interest Income
Commercial and industrial	$	1,085	$	435	$	6	$	1,371
Construction	2,882		740		99		156
Residential real estate:
1-to-4 family mortgage	378		4,215		60		314
Residential line of credit	797		939		11		289
Multi-family mortgage	—		49		2		3
Commercial real estate:
Owner occupied	5,346		1,364		206		536
Non-owner occupied	13,898		186		7		486
Consumer and other	—		3,254		164		245
Total	$	24,386	$	11,182	$	555	$	3,400


December 31, 2020	Non-accrual with no related allowance		Non-accrual with related allowance		Related allowance		Year to date Interest Income

Commercial and industrial	$	13,960	$	2,045	$	383	$	325
Construction	3,061		992		131		69
Residential real estate:
1-to-4 family mortgage	3,048		2,875		84		22
Residential line of credit	854		903		31		72

Commercial real estate:
Owner occupied	7,172		776		63		89
Non-owner occupied	4,566		7,905		1,711		215
Consumer and other	—		2,603		147		24
Total	$	32,661	$	18,099	$	2,550	$	816

Schedule of Financial Effect of TDRs

The following tables present the financial effect of TDRs recorded during the periods indicated.


Year Ended December 31, 2021	Number of loans	Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment		Charge offs and specific reserves
Commercial and industrial	8	$	15,430	$	15,430	$	446

Commercial real estate:
Owner occupied	7	5,209		5,209		—
Non-owner occupied	1	11,997		11,997		—
Residential real estate:
1-to-4 family mortgage	3	945		945		—
Residential line of credit	3	485		485		—
Multi-family mortgage	1	49		49		—

Total	23	$	34,115	$	34,115	$	446


Year Ended December 31, 2020	Number of loans	Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment		Charge offs and specific reserves
Commercial and industrial	5	$	2,257	$	2,257	$	—

Commercial real estate:
Owner occupied	7	2,794		2,794		—
Non-owner occupied	2	3,752		3,752		—
Residential real estate:
1-4 family mortgage	3	618		618		—
Residential line of credit	1	95		95		—
Total	18	$	9,516	$	9,516	$	—


Year Ended December 31, 2019	Number of loans	Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment		Charge offs and specific reserves
Commercial and industrial	3	$	3,204	$	3,204	$	—
Construction	2	1,085		1,085		—
Commercial real estate:
Owner occupied	2	1,494		1,495		—
Non-owner occupied	1	1,366		1,366		106
Residential real estate:
1-4 family mortgage	2	175		175		—
Residential line of credit	2	333		333		9

Total	12	$	7,657	$	7,658	$	115

Schedule of Individually Assessed Allowance for Credit Losses for Collateral Dependent Loans

For loans for which the repayment (based on the Company's assessment is expected to be provided substantially through the operation or sale of collateral and the borrower is experiencing financial difficulty, the following tables present the loans and the corresponding individually assessed allowance for credit losses by class of financing receivable. Significant changes in individually assessed reserves are due to changes in the valuation of the underlying collateral in addition to changes in accrual and past due status.


	December 31, 2021
	Type of Collateral
	Real Estate		Financial Assets and Equipment		Total		Individually assessed allowance for credit loss
Commercial and industrial	$	799	$	1,090	$	1,889	$	—
Construction	3,580		—		3,580		92
Residential real estate:
1-to-4 family mortgage	338		—		338		—
Residential line of credit	1,400		—		1,400		10

Commercial real estate:
Owner occupied	8,117		71		8,188		200
Non-owner occupied	13,899		—		13,899		—
Consumer and other	25		—		25		1
Total	$	28,158	$	1,161	$	29,319	$	303


	December 31, 2020
	Type of Collateral
	Real Estate		Financial Assets and Equipment		Total		Individually assessed allowance for credit loss
Commercial and industrial	$	—	$	1,728	$	1,728	$	117
Construction	3,877		—		3,877		—
Residential real estate:
1-to-4 family mortgage	226		—		226		—
Residential line of credit	1,174		—		1,174		9

Commercial real estate:
Owner occupied	3,391		—		3,391		30
Non-owner occupied	8,164		—		8,164		1,531

Total	$	16,832	$	1,728	$	18,560	$	1,687

Schedule of Financing Receivables Under Deferral Program Included in Covid-19 Relief

The following table outlines the Company's recorded investment and percentage of loans held for investment by class of financing receivable for executed deferrals remaining on deferral status as of December 31, 2020, in connection with Company's COVID-19 relief programs. There were no such loans outstanding as of December 31, 2021. These deferrals typically ranged from sixty to ninety days per deferral and the majority were not considered TDRs under the interagency regulatory guidance or CARES Act, issued in March 2020. As of December 31, 2021 and 2020, the Company had a recorded investment in loans totaling $1,193,088 and $1,399,088 previously deferred that were no longer in deferral status.


	December 31, 2020
		% of Loans
Commercial and industrial		$	7,118	0.5	%
Construction		1,918		0.2	%
Residential real estate:
1-to-4 family mortgage		19,201		1.8	%
Residential line of credit		204		—	%
Multi-family mortgage		3,305		1.9	%
Commercial real estate:
Owner occupied		19,815		2.1	%
Non-owner occupied		139,590		8.7	%
Consumer and other		11,366		3.6	%
Total		$	202,517	2.9	%

Schedule of Average Recorded Investment and Interest Income on Cash Basis Recognized on Impaired Loans

Average recorded investment on impaired loans recognized in conformity with ASC 310 and interest income on a cash basis recognized during the year ended December 31, 2019, segregated by class, were as follows:


	December 31, 2019
	Average recorded investment		Interest income recognized (cash basis)
With a related allowance recorded:
Commercial and industrial	$	3,349	$	474

Residential real estate:
1-to-4 family mortgage	205		13


Commercial real estate:
Owner occupied	658		27
Non-owner occupied	6,196		109

Total	$	10,568	$	624
With no related allowance recorded:
Commercial and industrial	$	2,088	$	201
Construction	1,641		167
Residential real estate:
1-to-4 family mortgage	963		68
Residential line of credit	252		1

Commercial real estate:
Owner occupied	2,143		133
Non-owner occupied	1,049		—
Consumer and other	61		5
Total	$	8,197	$	575
Total impaired loans	$	18,765	$	1,199

Schedule of Changes in Fair Value of the Accretable Yield for PCI Loans

The following table presents changes in the value of the accretable yield for PCI loans for the year ended December 31, 2019.


	Year Ended December 31, 2019
Balance at the beginning of period	$	(16,587)
Additions through business combinations	(1,167)
Principal reductions and other reclassifications from nonaccretable difference	61

Accretion	7,003
Changes in expected cash flows	(360)
Balance at end of period	$	(11,050)