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



			Provision for
	Beginning		(Release of)						Ending
Allowance for credit losses	Balance		Credit Losses		Charge-offs		Recoveries		Balance
Three months ended June 30, 2023
Commercial	$	11,511	$	319	$	380	$	82	$	11,532
Leases		2,766		(83)		-		7		2,690
Commercial real estate – investor		15,260		4,822		71		20		20,031
Commercial real estate – owner occupied		15,576		(2,816)		201		3		12,562
Construction		1,045		134		-		-		1,179
Residential real estate – investor		746		(8)		-		5		743
Residential real estate – owner occupied		1,722		110		-		36		1,868
Multifamily		2,665		72		-		-		2,737
HELOC		1,788		(118)		-		24		1,694
Other		313		(5)		81		51		278
Total	$	53,392	$	2,427	$	733	$	228	$	55,314



			Provision for
	Beginning		(Release of)						Ending
Allowance for credit losses	Balance		Credit Losses		Charge-offs		Recoveries		Balance
Six months ended June 30, 2023
Commercial	$	11,968	$	(262)	$	407	$	233	$	11,532
Leases		2,865		691		882		16		2,690
Commercial real estate – investor		10,674		9,391		71		37		20,031
Commercial real estate – owner occupied		15,001		(2,243)		201		5		12,562
Construction		1,546		(367)		-		-		1,179
Residential real estate – investor		768		(49)		-		24		743
Residential real estate – owner occupied		2,046		(224)		-		46		1,868
Multifamily		2,453		284		-		-		2,737
HELOC		1,806		(165)		-		53		1,694
Other		353		23		194		96		278
Total	$	49,480	$	7,079	$	1,755	$	510	$	55,314



			Provision for
	Beginning		(Release of)						Ending
Allowance for credit losses	Balance		Credit Losses		Charge-offs		Recoveries		Balance
Three months ended June 30, 2022
Commercial	$	12,576	$	1,582	$	52	$	8	$	14,114
Leases		2,573		(837)		-		-		1,736
Commercial real estate – investor		10,690		(1,029)		243		18		9,436
Commercial real estate – owner occupied		8,139		3,332		-		7		11,478
Construction		2,858		(1,323)		-		-		1,535
Residential real estate – investor		703		(47)		-		5		661
Residential real estate – owner occupied		1,950		(103)		-		22		1,869
Multifamily		2,977		(543)		-		-		2,434
HELOC		1,675		(164)		-		31		1,542
Other		167		462		91		45		583
Total	$	44,308	$	1,330	$	386	$	136	$	45,388

			Provision for
Allowance for credit losses	Beginning		(Release of)						Ending
Six months ended June 30, 2022	Balance		Credit Losses		Charge-offs		Recoveries		Balance
Commercial	$	11,751	$	2,407	$	82	$	38	$	14,114
Leases		3,480		(1,744)		-		-		1,736
Commercial real estate – investor		10,795		(920)		480		41		9,436
Commercial real estate – owner occupied		4,913		6,671		121		15		11,478
Construction		3,373		(1,838)		-		-		1,535
Residential real estate – investor		760		(114)		-		15		661
Residential real estate – owner occupied		2,832		(1,068)		-		105		1,869
Multifamily		3,675		(1,241)		-		-		2,434
HELOC		2,510		(1,035)		-		67		1,542
Other		192		532		217		76		583
Total	$	44,281	$	1,650	$	900	$	357	$	45,388

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
June 30, 2023	Past Due		Past Due		Due		Due		Current		Total Loans		Accruing
Commercial	$	-	$	879	$	91	$	970	$	819,057	$	820,027	$	-
Leases		453		37		-		490		314,429		314,919		-
Commercial real estate – investor		132		21		26,579		26,732		1,053,341		1,080,073		149
Commercial real estate – owner occupied		1,120		2,037		4,317		7,474		816,803		824,277		-
Construction		-		-		116		116		188,942		189,058		-
Residential real estate – investor		447		460		292		1,199		54,736		55,935		-
Residential real estate – owner occupied		179		731		2,248		3,158		215,047		218,205		-
Multifamily		6,386		326		-		6,712		376,472		383,184		-
HELOC		549		11		231		791		101,267		102,058		159
Other		1		2		-		3		27,786		27,789		-
Total	$	9,267	$	4,504	$	33,874	$	47,645	$	3,967,880	$	4,015,525	$	308


													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 loan segment and loan origination date at June 30, 2023 were as follows:


	2023		2022		2021		2020		2019		Prior		Revolving Loans		Revolving Loans Converted To Term Loans		Total
Commercial
Pass	$	127,530	$	226,048	$	45,876	$	16,103	$	9,914	$	5,986	$	335,806	$	1,379	$	768,642
Special Mention		-		-		260		-		43		-		28,837		-		29,140
Substandard		-		3,010		1,432		2,815		11,354		-		3,634		-		22,245
Total commercial		127,530		229,058		47,568		18,918		21,311		5,986		368,277		1,379		820,027

Leases
Pass		86,364		138,055	$	53,672		20,558		12,036		3,260		-		-		313,945
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		637		-		-		337		-		-		-		974
Total leases		86,364		138,692		53,672		20,558		12,373		3,260		-		-		314,919

Commercial real estate – investor
Pass		175,445		363,460		213,303		112,372		60,729		71,447		7,982		-		1,004,738
Special Mention		-		12,885		-		5,409		-		-		-		-		18,294
Substandard		351		17,681		1,947		5,033		10,597		9,119		12,313		-		57,041
Total commercial real estate – investor		175,796		394,026		215,250		122,814		71,326		80,566		20,295		-		1,080,073

Commercial real estate – owner occupied
Pass		94,424		145,156		185,929		83,503		57,794		111,532		33,885		-		712,223
Special Mention		-		13,538		22,245		35,427		226		2,123		-		-		73,559
Substandard		-		2,494		15,333		1,164		18,943		561		-		-		38,495
Total commercial real estate – owner occupied		94,424		161,188		223,507		120,094		76,963		114,216		33,885		-		824,277

Construction
Pass		10,078		73,533		56,855		25,249		1,865		1,216		2,144		-		170,940
Special Mention		307		7,574		-		10,121		-		-		-		-		18,002
Substandard		-		-		-		-		116		-		-		-		116
Total construction		10,385		81,107		56,855		35,370		1,981		1,216		2,144		-		189,058

Residential real estate – investor
Pass		2,101		14,624		9,201		6,702		8,029		11,616		1,880		-		54,153
Special Mention		-		-		68		-		-		-		-		-		68
Substandard		-		591		-		-		421		702		-		-		1,714
Total residential real estate – investor		2,101		15,215		9,269		6,702		8,450		12,318		1,880		-		55,935

Residential real estate – owner occupied
Pass		9,856		42,915		42,368		27,072		15,462		76,144		728		-		214,545
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		125		-		92		696		2,747		-		-		3,660
Total residential real estate – owner occupied		9,856		43,040		42,368		27,164		16,158		78,891		728		-		218,205

Multifamily
Pass		51,855		81,441		117,460		68,474		12,666		43,224		343		-		375,463
Special Mention		-		373		3,596		337		1,675		549		-		-		6,530
Substandard		-		924		-		-		-		267		-		-		1,191
Total multifamily		51,855		82,738		121,056		68,811		14,341		44,040		343		-		383,184

HELOC
Pass		1,057		2,810		229		1,462		1,648		2,393		90,307		-		99,906
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		41		28		1		-		-		209		1,873		-		2,152
Total HELOC		1,098		2,838		230		1,462		1,648		2,602		92,180		-		102,058

Other
Pass		4,463		2,405		1,577		267		91		103		18,883				27,789
Special Mention		-		-		-		-		-		-		-				-
Substandard		-		-		-		-		-		-		-				-
Total other		4,463		2,405		1,577		267		91		103		18,883		-		27,789

Total loans
Pass		563,173		1,090,447		726,470		361,762		180,234		326,921		491,958		1,379		3,742,344
Special Mention		307		34,370		26,169		51,294		1,944		2,672		28,837		-		145,593
Substandard		392		25,490		18,713		9,104		42,464		13,605		17,820		-		127,588
Total loans	$	563,872	$	1,150,307	$	771,352	$	422,160	$	224,642	$	343,198	$	538,615	$	1,379	$	4,015,525

Credit quality indicators by loan segment and loan origination date at December 31, 2022, were as follows:


	2022		2021		2020		2019		2018		Prior		Revolving Loans		Revolving Loans Converted To Term Loans		Total
Commercial
Pass	$	225,056	$	70,608	$	21,597	$	12,742	$	6,957	$	2,651	$	447,821	$	-	$	787,432
Special Mention		1,875		272		1,182		2,432		-		-		21,286		-		27,047
Substandard		4,958		2,447		2,981		12,176		7		-		3,916		-		26,485
Total commercial		231,889		73,327		25,760		27,350		6,964		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		416,094		228,686		118,491		63,845		46,935		46,406		7,113		-		927,570
Special Mention		5,349		1,417		5,490		10,206		1,070		9,123		-		-		32,655
Substandard		12,332		2,018		-		10,763		-		2,297		-		-		27,410
Total commercial real estate – investor		433,775		232,121		123,981		84,814		48,005		57,826		7,113		-		987,635

Commercial real estate – owner occupied
Pass		169,703		223,731		105,669		47,351		49,367		86,660		33,745		-		716,226
Special Mention		8,430		22,242		48,184		17,668		231		1,008		-		-		97,763
Substandard		2,546		17,129		1,191		16,962		-		3,062		-		-		40,890
Total commercial real estate – owner occupied		180,679		263,102		155,044		81,981		49,598		90,730		33,745		-		854,879

Construction
Pass		53,058		65,758		39,542		2,390		226		1,408		1,523		-		163,905
Special Mention		-		-		15,297		-		-		-		-		-		15,297
Substandard		1,217		-		-		116		-		-		-		-		1,333
Total construction		54,275		65,758		54,839		2,506		226		1,408		1,523		-		180,535

Residential real estate – investor
Pass		14,737		9,910		6,945		8,585		4,853		9,548		991		-		55,569
Special Mention		-		70		-		-		-		-		-		-		70
Substandard		621		-		-		499		186		408		-		-		1,714
Total residential real estate – investor		15,358		9,980		6,945		9,084		5,039		9,956		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		131		267		237		723		131		2,365		-		-		3,854
Total residential real estate – owner occupied		42,016		45,151		28,655		16,869		12,283		73,106		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		2,100		-		-		-		587		267		-		-		2,954
Total multifamily		79,354		129,940		52,604		14,809		40,290		6,365		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		1,165,744		837,389		401,848		183,707		165,368		226,741		600,854		-		3,581,651
Special Mention		16,031		27,684		70,495		31,990		1,301		10,131		21,397		-		179,029
Substandard		25,573		21,862		4,410		41,509		978		8,708		5,889		-		108,929
Total loans	$	1,207,348	$	886,935	$	476,753	$	257,206	$	167,647	$	245,580	$	628,140	$	-	$	3,869,609

Schedule of class of financing receivable


June 30, 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	$	859	$	979	$	-	$	1,838	0.2%
Commercial real estate – investor		12,664		-		1,774		14,438	1.3%
Commercial real estate – owner occupied		16,318		-		-		16,318	2.0%
HELOC		60		-		-		60	0.1%
Total	$	29,901	$	979	$	1,774	$	32,654	0.8%


June 30, 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	$	-	$	-	$	-	$	-	$	1,838	$	1,838
Commercial real estate – investor		-		-		1,774		1,774		12,664		14,438
Commercial real estate – owner occupied		-		-		-		-		16,318		16,318
HELOC		-		-		-		-		60		60
Total	$	-	$	-	$	1,774	$	1,774	$	30,880	$	32,654


June 30, 2023	Weighted-Average Term Extension (In Months)		Weighted-Average Interest Rate Change			Weighted-Average Delay of Payment (In Months)
Commercial		4.90		5.00	%		-
Commercial real estate – investor		11.50		-			7.00
Commercial real estate – owner occupied		12.00		-			-
HELOC		24.00		-			-
Total		11.40		5.00	%		7.00