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 table represent the activity in the ACL for loans for the year ended December 31, 2021 and 2020:



			Impact of		Provision for
	Beginning		WSB Acquisition		(Release of)						Ending
Allowance for credit losses	Balance		with PCD Loans		Credit Losses		Charge-offs		Recoveries		Balance

Commercial	$	2,812	$	7,161	$	2,389	$	963	$	352	$	11,751
Leases		3,888		-		(339)		69		-		3,480
Commercial real estate - Investor		9,205		1,877		4,657		2,724		78		13,093
Commercial real estate - Owner occupied		2,251		2,771		(845)		1,797		235		2,615
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		1,749		5		408		17		234		2,379
HELOC - Purchased		199		-		(68)		-		-		131
Other		1,618		-		(1,387)		180		141		192
Ending Balance, December 31, 2021	$	33,855	$	12,075	$	2,795	$	5,933	$	1,489	$	44,281



			Impact of		Provision for
Allowance for credit losses	Beginning		Adopting		(Release of)						Ending
	Balance		ASC 326		Credit Losses		Charge-offs		Recoveries		Balance
Commercial	$	3,015	$	(292)	$	72	$	39	$	56	$	2,812
Leases		1,262		501		2,233		206		98		3,888
Commercial real estate - Investor		6,218		(741)		4,075		512		165		9,205
Commercial real estate - Owner occupied		3,678		(848)		487		1,763		697		2,251
Construction		513		1,334		2,095		60		172		4,054
Residential real estate - Investor		601		740		350		8		57		1,740
Residential real estate - Owner occupied		1,257		1,320		(107)		43		287		2,714
Multifamily		1,444		1,732		449		-		-		3,625
HELOC		1,161		1,526		(1,198)		127		387		1,749
HELOC - Purchased		-		-		265		66		-		199
Other		640		607		445		244		170		1,618
Ending Balance, December 31, 2020	$	19,789	$	5,879	$	9,166	$	3,068	$	2,089	$	33,855

The following table presents activity in the allowance for loan and lease losses for the years ended December 31, 2019, as determined in accordance with ASC 310 prior to the adoption of ASU 2016-13:


			Provision
	Beginning		for Loan						Ending
Allowance for loan and lease losses:	Balance		Losses		Charge-offs		Recoveries		Balance
Commercial	$	2,832	$	218	$	109	$	74	$	3,015
Leases		734		577		49		-		1,262
Commercial real estate - Investor		6,339		(497)		303		679		6,218
Commercial real estate - Owner occupied		3,515		874		716		5		3,678
Construction		969		(448)		9		1		513
Residential real estate - Investor		554		43		7		11		601
Residential real estate - Owner occupied		1,377		(86)		111		77		1,257
Multifamily		616		813		-		15		1,444
HELOC		1,449		(351)		109		172		1,161
HELOC - Purchased		-		229		229		-		-
Other		621		228		409		200		640
Ending Balance, December 31, 2019	$	19,006	$	1,600	$	2,051	$	1,234	$	19,789

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, 2021¹	Past Due		Past Due		Due		Due		Current		Total Loans		Accruing
Commercial	$	3,407	$	1,413	$	1,828	$	6,648	$	764,826	$	771,474	$	1,396
Leases		125		-		1,571		1,696		174,335		176,031		-
Commercial real estate - Investor		-		267		1,107		1,374		956,015		957,389		-
Commercial real estate - Owner occupied		2,324		500		4,848		7,672		566,712		574,384		1,594
Construction		854		-		-		854		205,278		206,132		-
Residential real estate - Investor		395		470		792		1,657		61,742		63,399		23
Residential real estate - Owner occupied		1,994		591		3,077		5,662		207,586		213,248		97
Multifamily		-		1,046		-		1,046		308,118		309,164		-
HELOC		193		23		218		434		115,230		115,664		-
HELOC - Purchased		-		-		180		180		10,446		10,626		-
Other		50		46		23		119		24,318		24,437		-
Total	$	9,342	$	4,356	$	13,644	$	27,342	$	3,394,606	$	3,421,948	$	3,110

¹ Loans modified under the CARES Act are considered current if they are in compliance with the modified terms.


													90 days or
					90 Days or								Greater Past
	30-59 Days		60-89 Days		Greater Past		Total Past						Due and
December 31, 2020¹	Past Due		Past Due		Due		Due		Current		Total Loans		Accruing
Commercial	$	-	$	-	$	52	$	52	$	407,107	$	407,159	$	-
Leases		613		59		316		988		140,613		141,601		163
Commercial real estate - Investor		1,439		-		1,108		2,547		579,495		582,042		-
Commercial real estate - Owner occupied		1,848		958		7,309		10,115		322,955		333,070		-
Construction		1,237		-		-		1,237		97,249		98,486		-
Residential real estate - Investor		1,022		20		484		1,526		54,611		56,137		157
Residential real estate - Owner occupied		859		286		717		1,862		114,526		116,388		114
Multifamily		3,282		467		-		3,749		185,291		189,040		-
HELOC		549		50		206		805		80,103		80,908		-
HELOC - Purchased		47		-		-		47		19,440		19,487		-
Other		20		-		-		20		10,513		10,533		-
Total	$	10,916	$	1,840	$	10,192	$	22,948	$	2,011,903	$	2,034,851	$	434

¹ Loans modified under the CARES Act are considered current if they are in compliance with the modified terms.

Schedule of credit quality indicators by class of loans

Credit Quality Indicators by class of loans as of December 31, 2021 were as follows in the vintage table below:


															Revolving
															Loans
															Converted
													Revolving		To Term
	2021		2020		2019		2018		2017		Prior		Loans		Loans		Total
Commercial
Pass	$	192,258	$	50,638	$	38,614	$	28,177	$	5,176	$	10,945	$	408,394	$	30	$	734,232
Special Mention		44		84		694		-		-		-		3,708		-		4,530
Substandard		9,498		4,048		14,121		326		-		75		4,644		-		32,712
Total commercial		201,800		54,770		53,429		28,503		5,176		11,020		416,746		30		771,474

Leases
Pass		83,402		44,129	$	32,259		8,950		1,170		2,367		-		-		172,277
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		2,834		623		-		297		-		-		3,754
Total leases		83,402		44,129		35,093		9,573		1,170		2,664		-		-		176,031

Commercial real estate - Investor
Pass		315,247		233,964		147,511		85,049		64,810		55,523		18,602		-		920,706
Special Mention		15,466		-		10,550		-		-		-		-		-		26,016
Substandard		2,238		2,378		451		181		3,612		1,807		-		-		10,667
Total commercial real estate - investor		332,951		236,342		158,512		85,230		68,422		57,330		18,602		-		957,389

Commercial real estate - Owner occupied
Pass		220,324		96,607		61,511		60,915		54,236		59,887		2,522		-		556,002
Special Mention		-		-		2,953		-		-		-		-		-		2,953
Substandard		8,318		942		1,686		-		1,251		3,232		-		-		15,429
Total commercial real estate - owner occupied		228,642		97,549		66,150		60,915		55,487		63,119		2,522		-		574,384

Construction
Pass		88,620		65,629		37,169		2,727		477		1,193		1,143		-		196,958
Special Mention		-		2,138		4,932		-		-		-		-		-		7,070
Substandard		160		-		-		1,944		-		-		-		-		2,104
Total construction		88,780		67,767		42,101		4,671		477		1,193		1,143		-		206,132

Residential real estate - Investor
Pass		13,371		9,758		13,084		6,392		7,059		10,602		1,868		-		62,134
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		121		144		-		197		385		418		-		-		1,265
Total residential real estate - investor		13,492		9,902		13,084		6,589		7,444		11,020		1,868		-		63,399

Residential real estate - Owner occupied
Pass		48,009		31,912		20,990		13,304		30,562		60,661		2,052		-		207,490
Special Mention		659		-		-		-		-		-		-		-		659
Substandard		322		183		6		1,219		176		3,193		-		-		5,099
Total residential real estate - owner occupied		48,990		32,095		20,996		14,523		30,738		63,854		2,052		-		213,248

Multifamily
Pass		109,175		71,748		39,293		61,190		11,399		7,117		64		-		299,986
Special Mention		-		-		6,900		-		-		-		-		-		6,900
Substandard		433		-		-		1,543		302		-		-		-		2,278
Total multifamily		109,608		71,748		46,193		62,733		11,701		7,117		64		-		309,164

HELOC
Pass		907		2,091		2,131		805		1,667		1,869		104,843		-		114,313
Special Mention		-		-		-		-		-		-		108		-		108
Substandard		-		-		-		17		12		196		1,018		-		1,243
Total HELOC		907		2,091		2,131		822		1,679		2,065		105,969		-		115,664

HELOC - Purchased
Pass		-		-		-		-		-		10,446		-		-		10,446
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		180		-		-		180
Total HELOC - purchased		-		-		-		-		-		10,626		-		-		10,626

Other
Pass		8,659		1,099		437		254		1,414		5,358		7,206		-		24,427
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		3		-		7		-		-		-		-		10
Total other		8,659		1,102		437		261		1,414		5,358		7,206		-		24,437

Total loans
Pass		1,079,972		607,575		392,999		267,763		177,970		225,968		546,694		30		3,298,971
Special Mention		16,169		2,222		26,029		-		-		-		3,816		-		48,236
Substandard		21,090		7,698		19,098		6,057		5,738		9,398		5,662		-		74,741
Total loans	$	1,117,231	$	617,495	$	438,126	$	273,820	$	183,708	$	235,366	$	556,172	$	30	$	3,421,948

Credit quality indicators by loan class at December 31, 2020 were as follows:


															Revolving
															Loans
															Converted
													Revolving		To Term
	2020		2019		2018		2017		2016		Prior		Loans		Loans		Total
Commercial
Pass	$	101,796	$	42,294	$	14,519	$	6,265	$	1,825	$	1,691	$	230,388	$	-	$	398,778
Special Mention		5,130		425		68		-		3		-		76		-		5,702
Substandard		273		52		1,524		-		-		-		830		-		2,679
Total commercial		107,199		42,771		16,111		6,265		1,828		1,691		231,294		-		407,159

Leases
Pass		56,605		52,168		16,830		6,545		5,242		651		-		-		138,041
Special Mention		175		163		-		-		-		-		-		-		338
Substandard		-		1,434		798		59		450		481		-		-		3,222
Total leases		56,780		53,765		17,628		6,604		5,692		1,132		-		-		141,601

Commercial real estate - Investor
Pass		173,781		158,677		92,156		66,762		55,963		15,966		1,319		-		564,624
Special Mention		2,394		9,592		220		-		95		-		-		-		12,301
Substandard		2,709		1,126		71		-		340		871		-		-		5,117
Total commercial real estate - investor		178,884		169,395		92,447		66,762		56,398		16,837		1,319		-		582,042

Commercial real estate - Owner occupied
Pass		72,605		52,809		73,719		45,315		50,000		25,507		1,324		-		321,279
Special Mention		604		-		-		-		-		-		-		-		604
Substandard		1,564		2,154		1,780		1,664		501		3,524		-		-		11,187
Total commercial real estate - owner occupied		74,773		54,963		75,499		46,979		50,501		29,031		1,324		-		333,070

Construction
Pass		50,170		24,163		7,203		539		218		1,261		9,702		-		93,256
Special Mention		38		-		-		-		-		-		-		-		38
Substandard		-		3,135		2,057		-		-		-		-		-		5,192
Total construction		50,208		27,298		9,260		539		218		1,261		9,702		-		98,486

Residential real estate - Investor
Pass		9,371		14,194		8,522		7,775		2,431		11,184		1,144		-		54,621
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		349		-		610		-		91		466		-		-		1,516
Total residential real estate - investor		9,720		14,194		9,132		7,775		2,522		11,650		1,144		-		56,137

Residential real estate - Owner occupied
Pass		18,308		23,450		10,808		15,409		10,394		31,325		2,654		-		112,348
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		47		-		412		219		526		2,836		-		-		4,040
Total residential real estate - owner occupied		18,355		23,450		11,220		15,628		10,920		34,161		2,654		-		116,388

Multifamily
Pass		40,671		30,849		44,301		38,133		12,147		7,735		197		-		174,033
Special Mention		-		6,901		-		548		-		-		-		-		7,449
Substandard		69		-		4,254		927		118		2,190		-		-		7,558
Total multifamily		40,740		37,750		48,555		39,608		12,265		9,925		197		-		189,040

HELOC
Pass		2,511		2,174		1,679		2,120		504		803		69,483		-		79,274
Special Mention		-		-		-		-		-		-		94		-		94
Substandard		-		-		86		37		271		91		1,055		-		1,540
Total HELOC		2,511		2,174		1,765		2,157		775		894		70,632		-		80,908

HELOC - Purchased
Pass		-		-		-		-		-		19,487		-		-		19,487
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-		-
Total HELOC - purchased		-		-		-		-		-		19,487		-		-		19,487

Other
Pass		1,555		574		569		229		559		341		6,702		-		10,529
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		4		-		-		-		-		-		4
Total other		1,555		574		573		229		559		341		6,702		-		10,533

Total loans
Pass		527,373		401,352		270,306		189,092		139,283		115,951		322,913		-		1,966,270
Special Mention		8,341		17,081		288		548		98		-		170		-		26,526
Substandard		5,011		7,901		11,596		2,906		2,297		10,459		1,885		-		42,055
Total loans	$	540,725	$	426,334	$	282,190	$	192,546	$	141,678	$	126,410	$	324,968	$	-	$	2,034,851

Schedule of loans to principal officers, directors, and their affiliates, made in the ordinary course of business


	2021		2020
Beginning balance	$	783	$	961
New loans, including acquired related party loans		11,836		644
Repayments and other reductions		(2,457)		(822)
Change in related party status		-		-
Ending balance	$	10,162	$	783