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Loans and Allowance for Credit Losses on Loans (Tables)

3 Months Ended

Mar. 31, 2022

Loans and Allowance for Credit Losses on Loans

Schedule of major classifications of loans


		March 31, 2022			December 31, 2021
Commercial ¹		$	695,545		$	771,474
Leases			211,132			176,031
Commercial real estate - Investor			965,767			957,389
Commercial real estate - Owner occupied			655,792			574,384
Construction			165,558			206,132
Residential real estate - Investor			62,846			63,399
Residential real estate - Owner occupied			203,118			213,248
Multifamily			298,686			309,164
HELOC			110,688			115,664
HELOC - Purchased			9,553			10,626
Other ²			23,685			24,437
Total loans			3,402,370			3,421,948
Allowance for credit losses on loans			(44,308)			(44,281)
Net loans³		$	3,358,062		$	3,377,667

¹ Includes $11.2 million and $38.4 million of Paycheck Protection Program (“PPP”) loans at March 31, 2022 and December 31, 2021, respectively.

² The “Other” segment includes consumer and overdrafts in this table and in subsequent tables within Note 4 - Loans and Allowance for Credit Losses on Loans.

³ Excludes accrued interest receivable of $9.6 million and $9.2 million at March 31, 2022 and December 31, 2021, respectively, that is recorded in other assets on the consolidated balance sheet.

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



					Provision for
		Beginning			(Release of)									Ending
Allowance for credit losses		Balance			Credit Losses			Charge-offs			Recoveries			Balance
Three months ended March 31, 2022
Commercial		$	11,751		$	825		$	30		$	30		$	12,576
Leases			3,480			(907)			-			-			2,573
Commercial real estate - Investor			13,093			2,679			236			23			15,559
Commercial real estate - Owner occupied			2,615			768			121			8			3,270
Construction			3,373			(515)			-			-			2,858
Residential real estate - Investor			760			(67)			-			10			703
Residential real estate - Owner occupied			2,832			(965)			-			83			1,950
Multifamily			3,675			(698)			-			-			2,977
HELOC			2,379			(820)			-			35			1,594
HELOC - Purchased			131			(50)			-			-			81
Other			192			70			127			32			167
		$	44,281		$	320		$	514		$	221		$	44,308



					Provision for
		Beginning			(Release of)									Ending
Allowance for credit losses		Balance			Credit Losses			Charge-offs			Recoveries			Balance
Three months ended March 31, 2021
Commercial		$	2,812		$	446		$	2		$	20		$	3,276
Leases			3,888			(506)			-			-			3,382
Commercial real estate - Investor			9,205			(1,317)			-			20			7,908
Commercial real estate - Owner occupied			2,251			(734)			3			208			1,722
Construction			4,054			(335)			-			-			3,719
Residential real estate - Investor			1,740			(203)			-			266			1,803
Residential real estate - Owner occupied			2,714			(235)			-			49			2,528
Multifamily			3,625			640			-			-			4,265
HELOC			1,749			(48)			12			24			1,713
HELOC - Purchased			199			96			-			-			295
Other			1,618			(1,274)			25			37			356
		$	33,855		$	(3,470)		$	42		$	624		$	30,967

The ACL on loans excludes $4.2 million, $4.5 million and $3.5 million of allowance for unfunded commitments as of March 31, 2022, December 31, 2021 and March 31, 2021, respectively, recorded within Other Liabilities. The total ACL on unfunded commitments listed as of March 31, 2022 and December 31, 2021 excludes the purchase accounting adjustment of $1.5 million and $1.7 million, respectively, recorded due to our acquisition of West Suburban, which is also recorded within Other Liabilities, and is being accreted in interest income over the estimated life of the unused commitments.

The following tables presents the collateral dependent loans and the related ACL allocated by segment of loans as of March 31, 2022 and December 31, 2021:


					Accounts												ACL
March 31, 2022		Real Estate			Receivable			Equipment			Other			Total			Allocation
Commercial		$	1,955		$	9,022		$	-		$	-		$	10,977		$	2,432
Leases			-			-			2,641			-			2,641			475
Commercial real estate - Investor			4,379			-			-			-			4,379			288
Commercial real estate - Owner occupied			7,414			-			-			2,457			9,871			554
Construction			2,098			-			-			-			2,098			1,007
Residential real estate - Investor			1,391			-			-			-			1,391			-
Residential real estate - Owner occupied			3,941			-			-			-			3,941			260
Multifamily			938			-			-			-			938			-
HELOC			914			-			-			-			914			32
HELOC - Purchased			173			-			-			-			173			-
Other			-			-			-			-			-			-
Total		$	23,203		$	9,022		$	2,641		$	2,457		$	37,323		$	5,048


					Accounts												ACL
December 31, 2021		Real Estate			Receivable			Equipment			Other			Total			Allocation
Commercial		$	1,986		$	9,901		$	-		$	-		$	11,887		$	2,677
Leases			-			-			3,249			505			3,754			811
Commercial real estate - Investor			5,693			-			-			-			5,693			-
Commercial real estate - Owner occupied			9,147			-			-			2,490			11,637			362
Construction			2,104			-			-			-			2,104			992
Residential real estate - Investor			925			-			-			-			925			-
Residential real estate - Owner occupied			4,271			-			-			-			4,271			276
Multifamily			1,845			-			-			-			1,845			75
HELOC			826			-			-			-			826			190
HELOC - Purchased			180			-			-			-			180			-
Other			-			-			-			7			7			4
Total		$	26,977		$	9,901		$	3,249		$	3,002		$	43,129		$	5,387

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
March 31, 2022		Past Due			Past Due			Due			Due			Current			Total Loans			Accruing
Commercial		$	4,904		$	548		$	7,124		$	12,576		$	682,969		$	695,545		$	-
Leases			401			-			1,536			1,937			209,195			211,132			-
Commercial real estate - Investor			3,399			-			1			3,400			962,367			965,767			-
Commercial real estate - Owner occupied			9,764			100			2,956			12,820			642,972			655,792			-
Construction			117			-			7			124			165,434			165,558			7
Residential real estate - Investor			269			-			1,001			1,270			61,576			62,846			2
Residential real estate - Owner occupied			1,805			98			2,589			4,492			198,626			203,118			20
Multifamily			-			-			691			691			297,995			298,686			691
HELOC			354			93			319			766			109,922			110,688			23
HELOC - Purchased			-			-			173			173			9,380			9,553			-
Other			66			-			2			68			23,617			23,685			-
Total		$	21,079		$	839		$	16,399		$	38,317		$	3,364,053		$	3,402,370		$	743


																				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.

Schedule of loans on nonaccrual for which there was no related allowance


Nonaccrual loan detail		March 31, 2022			With no ACL			December 31, 2021			With no ACL
Commercial		$	9,029		$	1,496		$	11,894		$	9,217
Leases			2,641			464			3,754			2,943
Commercial real estate - Investor			6,335			2,858			5,694			5,694
Commercial real estate - Owner occupied			9,871			6,791			11,637			11,205
Construction			155			-			160			160
Residential real estate - Investor			1,391			881			876			876
Residential real estate - Owner occupied			4,321			4,065			4,898			4,622
Multifamily			938			938			1,573			1,573
HELOC			1,116			1,116			862			672
HELOC - Purchased			173			173			180			180
Other			3			3			3			3
Total		$	35,973		$	18,785		$	41,531		$	37,145

Schedule of credit quality indicators by class of loans


																							Revolving
																							Loans
																							Converted
																				Revolving			To Term
		2022			2021			2020			2019			2018			Prior			Loans			Loans			Total
Commercial
Pass		$	39,944		$	112,254		$	42,384		$	22,145		$	15,024		$	8,914		$	420,642		$	-		$	661,307
Special Mention			162			398			653			623			-			-			3,135			-			4,971
Substandard			-			9,819			3,377			13,814			49			63			2,145			-			29,267
Total commercial			40,106			122,471			46,414			36,582			15,073			8,977			425,922			-			695,545

Leases
Pass			49,340			79,901		$	39,973			28,478			7,891			2,605			-			-			208,188
Special Mention			-			-			-			303			-			-			-			-			303
Substandard			-			-			-			2,015			367			259			-			-			2,641
Total leases			49,340			79,901			39,973			30,796			8,258			2,864			-			-			211,132

Commercial real estate - Investor
Pass			110,946			309,370			210,682			86,228			61,532			92,627			19,558			-			890,943
Special Mention			-			106			12,970			51,656			-			1,283			-			-			66,015
Substandard			-			2,883			-			492			-			3,478			1,956			-			8,809
Total commercial real estate - investor			110,946			312,359			223,652			138,376			61,532			97,388			21,514			-			965,767

Commercial real estate - Owner occupied
Pass			58,243			198,978			119,597			74,853			55,681			115,207			1,697			-			624,256
Special Mention			-			15,314			-			2,963			-			-			-			-			18,277
Substandard			-			6,793			706			1,686			-			4,074			-			-			13,259
Total commercial real estate - owner occupied			58,243			221,085			120,303			79,502			55,681			119,281			1,697			-			655,792

Construction
Pass			7,304			74,396			46,389			11,964			2,792			1,561			1,462			-			145,868
Special Mention			-			922			5,235			10,348			-			-			-			-			16,505
Substandard			1,214			-			-			-			1,971			-			-			-			3,185
Total construction			8,518			75,318			51,624			22,312			4,763			1,561			1,462			-			165,558

Residential real estate - Investor
Pass			9,367			10,468			7,951			11,330			6,734			14,482			970			-			61,302
Special Mention			-			-			-			-			-			-			-			-			-
Substandard			-			119			-			510			153			762			-			-			1,544
Total residential real estate - investor			9,367			10,587			7,951			11,840			6,887			15,244			970			-			62,846

Residential real estate - Owner occupied
Pass			2,425			47,217			30,623			17,882			12,967			84,522			1,982			-			197,618
Special Mention			-			638			-			-			-			-			-			-			638
Substandard			-			301			244			719			303			3,295			-			-			4,862
Total residential real estate - owner occupied			2,425			48,156			30,867			18,601			13,270			87,817			1,982			-			203,118

Multifamily
Pass			16,859			115,523			43,970			37,815			59,557			16,643			59			-			290,426
Special Mention			-			-			-			6,891			-			-			-			-			6,891
Substandard			-			329			-			-			730			310			-			-			1,369
Total multifamily			16,859			115,852			43,970			44,706			60,287			16,953			59			-			298,686

HELOC
Pass			117			1,878			2,052			1,972			736			676			101,653			-			109,084
Special Mention			-			-			-			-			-			-			108			-			108
Substandard			-			-			2			-			27			350			1,117			-			1,496
Total HELOC			117			1,878			2,054			1,972			763			1,026			102,878			-			110,688

HELOC - Purchased

Pass			-			-			-			-			-			2,499			6,881			-			9,380
Special Mention			-			-			-			-			-			-			-			-			-
Substandard			-			-			-			-			-			173			-			-			173
Total HELOC - purchased			-			-			-			-			-			2,672			6,881			-			9,553

Other
Pass			497			9,143			1,106			131			117			6,323			6,365			-			23,682
Special Mention			-			-			-			-			-			-			-			-			-
Substandard			-			-			3			-			-			-			-			-			3
Total other			497			9,143			1,109			131			117			6,323			6,365			-			23,685

Total loans
Pass			295,042			959,128			544,727			292,798			223,031			346,059			561,269			-			3,222,054
Special Mention			162			17,378			18,858			72,784			-			1,283			3,243			-			113,708
Substandard			1,214			20,244			4,332			19,236			3,600			12,764			5,218			-			66,608
Total loans		$	296,418		$	996,750		$	567,917		$	384,818		$	226,631		$	360,106		$	569,730		$	-		$	3,402,370

Credit quality indicators by loan segment and loan origination date at December 31, 2021, were as follows:


																							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