Loans and Allowance for Credit Losses on Loans

Schedule of changes in the allowance for loan losses by segment of loans based on method of impairment

The following tables represent the activity in the ACL for loans for the years ended December 31, 2023, 2022 and 2021:



	Beginning		Provision for						Ending
	Balance		(Release of)						Balance
Allowance for credit losses	January 1, 2023		Credit Losses		Charge-offs		Recoveries		December 31, 2023
Commercial	$	11,968	$	(7,717)	$	885	$	632	$	3,998
Leases		2,865		850		882		119		2,952
Commercial real estate – investor		10,674		18,170		11,816		77		17,105
Commercial real estate – owner occupied		15,001		7,941		10,691		29		12,280
Construction		1,546		(608)		-		100		1,038
Residential real estate – investor		768		(129)		-		30		669
Residential real estate – owner occupied		2,046		(304)		-		79		1,821
Multifamily		2,453		275		-		-		2,728
HELOC		1,806		(255)		-		105		1,656
Other		353		(137)		368		169		17
Total	$	49,480	$	18,086	$	24,642	$	1,340	$	44,264



	Beginning		Provision for						Ending
Allowance for credit losses	Balance		(Release of)						Balance
	January 1, 2022		Credit Losses		Charge-offs		Recoveries		December 31, 2022
Commercial	$	11,751	$	273	$	151	$	95	$	11,968
Leases		3,480		(246)		371		2		2,865
Commercial real estate – investor		10,795		1,199		1,401		81		10,674
Commercial real estate – owner occupied		4,913		10,117		133		104		15,001
Construction		3,373		(1,827)		-		-		1,546
Residential real estate – investor		760		(22)		-		30		768
Residential real estate – owner occupied		2,832		(1,010)		2		226		2,046
Multifamily		3,675		(1,285)		-		63		2,453
HELOC		2,510		(844)		-		140		1,806
Other		192		395		402		168		353
Total	$	44,281	$	6,750	$	2,460	$	909	$	49,480


	Beginning			Impact of	Provision for						Ending
	Balance			WSB Acquisition	(Release of)						Balance
Allowance for credit losses	January 1, 2021			with PCD Loans	Credit Losses		Charge-offs		Recoveries		December 31, 2021
Commercial	$	2,812		7,161	$	2,389	$	963	$	352	$	11,751
Leases		3,888		-		(339)		69		-		3,480
Commercial real estate – Investor		7,899		1,877		3,665		2,724		78		10,795
Commercial real estate – Owner occupied		3,557		2,771		147		1,797		235		4,913
Construction		4,054		102		(783)		-		-		3,373
Residential real estate – Investor		1,740		23		(1,294)		-		291		760
Residential real estate – Owner occupied		2,714		136		(176)		-		158		2,832
Multifamily		3,625		-		233		183		-		3,675
HELOC		1,948		5		340		17		234		2,510
Other		1,618		-		(1,387)		180		141		192
Total	$	33,855	$	12,075	$	2,795	$	5,933	$	1,489	$	44,281

Schedule of aged analysis of past due loans by class of loans


													90 days or
					90 Days or								Greater Past
	30-59 Days		60-89 Days		Greater Past		Total Past						Due and
December 31, 2023	Past Due		Past Due		Due		Due		Current		Total Loans		Accruing
Commercial	$	$982	$	-	$	$1,228	$	$2,210	$	839,487	$	841,697	$	1,155
Leases		599		-		347		946		397,277		398,223		-
Commercial real estate – investor		1,209		-		6,087		7,296		1,027,128		1,034,424		-
Commercial real estate – owner occupied		2,103		3,726		15,645		21,474		775,064		796,538		-
Construction		2,540		307		7,161		10,008		155,372		165,380		-
Residential real estate – investor		540		579		168		1,287		51,308		52,595		-
Residential real estate – owner occupied		553		125		1,944		2,622		223,626		226,248		-
Multifamily		1,085		-		233		1,318		400,378		401,696		-
HELOC		565		1,396		269		2,230		101,007		103,237		41
Other		-		1		-		1		22,914		22,915		-
Total	$	10,176	$	6,134	$	33,082	$	49,392	$	3,993,561	$	4,042,953	$	1,196


													90 days or
					90 Days or								Greater Past
	30-59 Days		60-89 Days		Greater Past		Total Past						Due and
December 31, 2022	Past Due		Past Due		Due		Due		Current		Total Loans		Accruing
Commercial	$	3	$	1,012	$	825	$	1,840	$	839,124	$	840,964	$	460
Leases		447		22		614		1,083		276,302		277,385		-
Commercial real estate – investor		3,276		1,276		4,315		8,867		978,768		987,635		-
Commercial real estate – owner occupied		373		113		2,211		2,697		852,182		854,879		173
Construction		14		-		116		130		180,405		180,535		-
Residential real estate – investor		445		-		987		1,432		55,921		57,353		144
Residential real estate – owner occupied		1,191		-		2,232		3,423		216,295		219,718		485
Multifamily		267		361		1,322		1,950		321,741		323,691		-
HELOC		291		90		392		773		108,429		109,202		-
Other		19		-		-		19		18,228		18,247		-
Total	$	6,326	$	2,874	$	13,014	$	22,214	$	3,847,395	$	3,869,609	$	1,262

Schedule of credit quality indicators by class of loans

Credit quality indicators by class of loans as of December 31, 2023 were as follows in the vintage table below:


	2023		2022		2021		2020		2019		Prior		Revolving Loans		Revolving Loans Converted To Term Loans		Total
Commercial
Pass	$	318,569	$	136,668	$	35,901	$	11,983	$	18,390	$	3,426	$	298,931	$	1,408	$	825,276
Special Mention		-		2,737		707		171		-		-		4,392		-		8,007
Substandard		-		2,099		146		-		199		-		5,970		-		8,414
Total commercial		318,569		141,504		36,754		12,154		18,589		3,426		309,293		1,408		841,697

Leases
Pass		219,163		113,074	$	42,275		14,663		6,975		1,255		-		-		397,405
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		407		203		-		208		-		-		-		818
Total leases		219,163		113,481		42,478		14,663		7,183		1,255		-		-		398,223

Commercial real estate – investor
Pass		159,654		367,512		218,084		108,384		54,322		63,281		8,122		-		979,359
Special Mention		-		-		11,267		-		-		-		-		-		11,267
Substandard		-		-		838		5,327		15,658		9,648		12,327		-		43,798
Total commercial real estate – investor		159,654		367,512		230,189		113,711		69,980		72,929		20,449		-		1,034,424

Commercial real estate – owner occupied
Pass		124,059		134,383		177,553		103,109		42,839		91,062		33,243		-		706,248
Special Mention		1,650		17,415		9,585		3,128		218		3,681		-		-		35,677
Substandard		-		14,630		18,817		4,571		14,809		1,786		-		-		54,613
Total commercial real estate – owner occupied		125,709		166,428		205,955		110,808		57,866		96,529		33,243		-		796,538

Construction
Pass		42,808		66,513		32,942		100		1,593		1,083		3,186		-		148,225
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		9,993		-		7,162		-		-		17,155
Total construction		42,808		66,513		32,942		10,093		1,593		8,245		3,186		-		165,380

Residential real estate – investor
Pass		5,062		14,434		9,027		6,227		6,508		8,469		1,471		-		51,198
Special Mention		-		-		66		-		-		-		-		-		66
Substandard		-		390		-		-		408		533		-		-		1,331
Total residential real estate – investor		5,062		14,824		9,093		6,227		6,916		9,002		1,471		-		52,595

Residential real estate – owner occupied
Pass		32,574		41,528		40,335		25,322		14,233		68,277		763		-		223,032
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		191		685		2,340		-		-		3,216
Total residential real estate – owner occupied		32,574		41,528		40,335		25,513		14,918		70,617		763		-		226,248

Multifamily
Pass		55,310		79,060		123,834		72,539		12,231		40,825		562		-		384,361
Special Mention		-		168		13,425		322		1,645		-		-		-		15,560
Substandard		-		1,009		-		-		-		766		-		-		1,775
Total multifamily		55,310		80,237		137,259		72,861		13,876		41,591		562		-		401,696

HELOC
Pass		2,735		2,679		490		1,757		1,756		2,995		89,161		-		101,573
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		25		1		41		24		184		1,389		-		1,664
Total HELOC		2,735		2,704		491		1,798		1,780		3,179		90,550		-		103,237

Other
Pass		4,060		2,278		1,569		153		85		73		14,697		-		22,915
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-		-
Total other		4,060		2,278		1,569		153		85		73		14,697		-		22,915

Total loans
Pass		963,994		958,129		682,010		344,237		158,932		280,746		450,136		1,408		3,839,592
Special Mention		1,650		20,320		35,050		3,621		1,863		3,681		4,392		-		70,577
Substandard		-		18,560		20,005		20,123		31,991		22,419		19,686		-		132,784
Total loans	$	965,644	$	997,009	$	737,065	$	367,981	$	192,786	$	306,846	$	474,214	$	1,408	$	4,042,953

Credit quality indicators by class of loans as of December 31, 2022 were as follows in the vintage table below:


	2022		2021		2020		2019		2018		Prior		Revolving Loans		Revolving Loans Converted To Term Loans		Total
Commercial
Pass	$	222,856	$	72,808	$	21,597	$	12,742	$	6,957	$	2,651	$	447,821	$	-	$	787,432
Special Mention		1,701		446		1,182		2,432		-		-		21,286		-		27,047
Substandard		-		2,447		3,139		12,176		4,807		-		3,916		-		26,485
Total commercial		224,557		75,701		25,918		27,350		11,764		2,651		473,023		-		840,964

Leases
Pass		161,379		64,203	$	26,995		17,653		4,449		830		-		-		275,509
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		1,606		-		-		270		-		-		-		-		1,876
Total leases		162,985		64,203		26,995		17,923		4,449		830		-		-		277,385

Commercial real estate – investor
Pass		382,311		229,155		133,215		76,846		46,935		51,995		7,113		-		927,570
Special Mention		-		6,766		5,490		10,206		1,070		9,123		-		-		32,655
Substandard		-		71		-		25,042		-		2,297		-		-		27,410
Total commercial real estate – investor		382,311		235,992		138,705		112,094		48,005		63,415		7,113		-		987,635

Commercial real estate – owner occupied
Pass		168,776		223,731		105,669		47,351		49,597		87,357		33,745		-		716,226
Special Mention		-		22,242		48,184		17,668		8,661		1,008		-		-		97,763
Substandard		2,309		15,182		1,191		17,865		853		3,490		-		-		40,890
Total commercial real estate – owner occupied		171,085		261,155		155,044		82,884		59,111		91,855		33,745		-		854,879

Construction
Pass		52,508		66,308		39,542		2,390		226		1,408		1,523		-		163,905
Special Mention		-		-		15,297		-		-		-		-		-		15,297
Substandard		-		-		-		1,198		-		135		-		-		1,333
Total construction		52,508		66,308		54,839		3,588		226		1,543		1,523		-		180,535

Residential real estate – investor
Pass		14,659		9,910		6,945		8,585		4,853		9,626		991		-		55,569
Special Mention		-		70		-		-		-		-		-		-		70
Substandard		621		-		-		499		186		408		-		-		1,714
Total residential real estate – investor		15,280		9,980		6,945		9,084		5,039		10,034		991		-		57,353

Residential real estate – owner occupied
Pass		41,885		44,884		28,418		16,146		12,152		70,741		1,638		-		215,864
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		22		237		968		131		2,496		-		-		3,854
Total residential real estate – owner occupied		41,885		44,906		28,655		17,114		12,283		73,237		1,638		-		219,718

Multifamily
Pass		76,877		126,257		52,262		13,125		39,703		6,098		329		-		314,651
Special Mention		377		3,683		342		1,684		-		-		-		-		6,086
Substandard		1,684		-		-		-		587		683		-		-		2,954
Total multifamily		78,938		129,940		52,604		14,809		40,290		6,781		329		-		323,691

HELOC
Pass		2,760		517		1,497		1,703		657		2,288		97,258		-		106,680
Special Mention		-		-		-		-		-		-		111		-		111
Substandard		62		1		-		-		67		309		1,972		-		2,411
Total HELOC		2,822		518		1,497		1,703		724		2,597		99,341		-		109,202

Other
Pass		4,195		2,835		432		167		69		111		10,436		-		18,245
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		1		-		-		-		1		-		2
Total other		4,195		2,835		433		167		69		111		10,437		-		18,247

Total loans
Pass		1,128,206		840,608		416,572		196,708		165,598		233,105		600,854		-		3,581,651
Special Mention		2,078		33,207		70,495		31,990		9,731		10,131		21,397		-		179,029
Substandard		6,282		17,723		4,568		58,018		6,631		9,818		5,889		-		108,929
Total loans	$	1,136,566	$	891,538	$	491,635	$	286,716	$	181,960	$	253,054	$	628,140	$	-	$	3,869,609

Schedule of class of financing receivable


December 31, 2023	Term Extension		Combination - Term Extension and Interest Rate Reduction		Combination - Term Extension and Payment Delay		Total Loans Modified		% of Total Loan Segment Modified to Total Loan Segment
Commercial	$	3,000	$	979	$	-	$	3,979	0.5%
Commercial real estate – investor		13,521		-		7,646		21,167	2.0%
Commercial real estate – owner occupied		16,082		-		-		16,082	2.0%
Residential real estate – owner occupied		119		-		-		119	0.1%
Multifamily		233		-		-		233	0.1%
HELOC		166		-		-		166	0.2%
Total	$	33,121	$	979	$	7,646	$	41,746	1.0%


December 31, 2023	30-59 days past due		60-89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Current		Total Loan Modified
Commercial	$	-	$	-	$	979	$	979	$	3,000	$	3,979
Commercial real estate – investor		838		-		-		838		20,329		21,167
Commercial real estate – owner occupied		-		-		-		-		16,082		16,082
Residential real estate – owner occupied		-		-		-		-		119		119
Multifamily		-		-		233		233		-		233
HELOC		-		-		-		-		166		166
Total	$	838	$	-	$	1,212	$	2,050	$	39,696	$	41,746


December 31, 2023	Weighted-Average Term Extension (In Months)		Weighted-Average Interest Rate Change			Weighted-Average Delay of Payment (In Months)
Commercial		8.31		5.00	%		-
Commercial real estate – investor		9.96		-			7.00
Commercial real estate – owner occupied		11.65		-			-
Residential real estate – owner occupied		39.00		-			-
Multifamily		21.00		-			-
HELOC		24.00		-			-
Total		10.65		5.00	%		7.00