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Loans Receivable (Tables)

3 Months Ended

Mar. 31, 2023

Loans and Leases Receivable Disclosure [Abstract]

Financing Receivable Credit Quality Indicators [Table Text Block]

The amortized cost of loans receivable, net of ACL on loans, consisted of the following portfolio segments and classes at the dates indicated:

			March 31, 2023						December 31, 2022
			(In thousands)
Commercial business:
Commercial and industrial			$	684,998					$	692,100
SBA PPP			900						1,468
Owner-occupied CRE			949,064						937,040

			March 31, 2023						December 31, 2022
			(In thousands)
Non-owner occupied CRE			1,601,789						1,586,632
Total commercial business			3,236,751						3,217,240
Residential real estate			363,777						343,631
Real estate construction and land development:
Residential			72,926						80,074
Commercial and multifamily			270,547						214,038
Total real estate construction and land development			343,473						294,112
Consumer			183,471						195,875
Loans receivable			4,127,472						4,050,858
Allowance for credit losses on loans			(44,469)						(42,986)
Loans receivable, net			$	4,083,003					$	4,007,872
Balances included in the amortized cost of loans receivable:
Unamortized net discount on acquired loans			$	(2,249)					$	(2,501)
Unamortized net deferred fee			$	(10,355)					$	(10,016)

The following table presents the amortized cost of loans receivable by risk grade and origination year at the dates indicated. The Bank adopted the vintage disclosure requirements of ASU 2022-02 prospectively as described in Note 1 beginning in January 2023.

Accordingly, the following vintage table reflects the gross charge-offs by loan class and year of origination for the date indicated:

			March 31, 2023
			Term Loans Amortized Cost Basis by Origination Year																																				Revolving Loans						Revolving Loans Converted (1)						Loans Receivable
			2023						2022						2021						2020						2019						Prior
			(In thousands)
Commercial business:
Commercial and industrial
Pass			$	21,299					$	171,005					$	91,228					$	79,267					$	54,430					$	98,811					$	126,167					$	118					$	642,325
SM			—						200						206						434						4,567						5,415						17,784						—						28,606
SS			—						1,130						176						1,642						3,326						4,854						2,939						—						14,067
Total			21,299						172,335						91,610						81,343						62,323						109,080						146,890						118						684,998
SBA PPP
Pass			—						—						804						96						—						—						—						—						900
Owner-occupied CRE
Pass			27,989						134,625						167,906						90,118						155,172						332,083						—						—						907,893
SM			—						—						1,971						2,041						—						19,274						—						—						23,286
SS			—						—						—						667						—						17,218						—						—						17,885
Total			27,989						134,625						169,877						92,826						155,172						368,575						—						—						949,064
Non-owner occupied CRE
Pass			48,286						242,245						185,064						159,050						245,235						671,604						—						—						1,551,484
SM			—						—						8,304						—						584						27,788						—						—						36,676
SS			—						—						—						—						—						13,629						—						—						13,629
Total			48,286						242,245						193,368						159,050						245,819						713,021						—						—						1,601,789
Total commercial business
Pass			97,574						547,875						445,002						328,531						454,837						1,102,498						126,167						118						3,102,602
SM			—						200						10,481						2,475						5,151						52,477						17,784						—						88,568
SS			—						1,130						176						2,309						3,326						35,701						2,939						—						45,581
Total			97,574						549,205						455,659						333,315						463,314						1,190,676						146,890						118						3,236,751
Commercial business gross charge-offs
Current period			—						—						—						61						—						100						—						—						161
Residential real estate
Pass(1)			18,666						133,415						151,041						25,500						16,680						18,232						—						—						363,534
SS			—						—						—						74						—						169						—						—						243
Total			18,666						133,415						151,041						25,574						16,680						18,401						—						—						363,777
Residential real estate gross charge-offs:
Current period			—						—						—						—						—						—						—						—						—
Real estate construction and land development:
Residential
Pass			4,995						44,885						16,392						1,804						2,969						1,881						—						—						72,926
Commercial and multifamily
Pass			6,245						105,433						139,246						6,721						794						3,457						—						—						261,896
SM			—						—						—						2,577						5,687						—						—						—						8,264
SS			—						—						—						—						—						387						—						—						387
Total			6,245						105,433						139,246						9,298						6,481						3,844						—						—						270,547

			March 31, 2023
			Term Loans Amortized Cost Basis by Origination Year																																				Revolving Loans						Revolving Loans Converted (1)						Loans Receivable
			2023						2022						2021						2020						2019						Prior
Total real estate construction and land development
Pass			11,240						150,318						155,638						8,525						3,763						5,338						—						—						334,822
SM			—						—						—						2,577						5,687						—						—						—						8,264
SS			—						—						—						—						—						387						—						—						387
Total			11,240						150,318						155,638						11,102						9,450						5,725						—						—						343,473
Real estate construction and land development gross writeoffs:
Current period			—						—						—						—						—						—						—						—						—
Consumer
Pass			823						2,956						466						8,827						24,015						31,315						112,073						383						180,858
SS			—						—						11						191						515						1,328						561						7						2,613
Total			823						2,956						477						9,018						24,530						32,643						112,634						390						183,471
Consumer gross charge-offs:
Current period			—						—						—						8						39						35						71						—						153
Loans receivable
Pass			128,303						834,564						752,147						371,383						499,295						1,157,383						238,240						501						3,981,816
SM			—						200						10,481						5,052						10,838						52,477						17,784						—						96,832
SS			—						1,130						187						2,574						3,841						37,585						3,500						7						48,824
Total			$	128,303					$	835,894					$	762,815					$	379,009					$	513,974					$	1,247,445					$	259,524					$	508					$	4,127,472
Gross writeoffs:
Current period total			$	—					$	—					$	—					$	69					$	39					$	135					$	71					$	—					$	314

(1) Represents the loans receivable balance at March 31, 2023 which was converted from a revolving loan to an amortizing loan during the three months ended months ended March 31, 2023.

			December 31, 2022
			Term Loans Amortized Cost Basis by Origination Year																																				Revolving Loans						Revolving Loans Converted (1)						Loans Receivable
			2022						2021						2020						2019						2018						Prior
			(In thousands)
Commercial business:
Commercial and industrial
Pass			$	168,818					$	93,302					$	82,437					$	61,160					$	33,957					$	74,181					$	146,795					$	172					$	660,822
SM			212						109						443						4,637						362						4,447						5,433						—						15,643
SS			773						188						1,710						3,465						559						5,098						3,674						168						15,635
Total			169,803						93,599						84,590						69,262						34,878						83,726						155,902						340						692,100
SBA PPP
Pass			—						1,351						117						—						—						—						—						—						1,468
Owner-occupied CRE
Pass			134,432						167,927						93,834						157,096						62,876						282,212						—						—						898,377
SM			—						1,744						—						—						2,540						16,664						—						247						21,195
SS			—						—						671						—						3,722						13,075						—						—						17,468
Total			134,432						169,671						94,505						157,096						69,138						311,951						—						247						937,040
Non-owner-occupied CRE
Pass			240,151						189,300						160,930						258,778						121,369						561,645						—						—						1,532,173
SM			—						8,349						—						4,172						—						12,190						—						—						24,711

			December 31, 2022
			Term Loans Amortized Cost Basis by Origination Year																																				Revolving Loans						Revolving Loans Converted (1)						Loans Receivable
			2022						2021						2020						2019						2018						Prior
			(In thousands)
SS			—						—						—						—						3,627						26,121						—						—						29,748
Total			240,151						197,649						160,930						262,950						124,996						599,956						—						—						1,586,632
Total commercial business
Pass			543,401						451,880						337,318						477,034						218,202						918,038						146,795						172						3,092,840
SM			212						10,202						443						8,809						2,902						33,301						5,433						247						61,549
SS			773						188						2,381						3,465						7,908						44,294						3,674						168						62,851
Total			544,386						462,270						340,142						489,308						229,012						995,633						155,902						587						3,217,240
Residential real estate
Pass			132,510						149,934						24,668						16,803						4,207						15,337						—						—						343,459
SS			—						—						—						—						—						172						—						—						172
Total			132,510						149,934						24,668						16,803						4,207						15,509						—						—						343,631
Real estate construction and land development:
Residential
Pass			45,521						26,675						2,891						3,061						871						1,055						—						—						80,074
Commercial and multifamily
Pass			71,168						123,626						6,272						1,084						2,562						995						—						—						205,707
SM			—						—						2,213						5,687						—						—						—						—						7,900
SS			—						—						—						37						—						394						—						—						431
Total			71,168						123,626						8,485						6,808						2,562						1,389						—						—						214,038
Total real estate construction and land development
Pass			116,689						150,301						9,163						4,145						3,433						2,050						—						—						285,781
SM			—						—						2,213						5,687						—						—						—						—						7,900
SS			—						—						—						37						—						394						—						—						431
Total			116,689						150,301						11,376						9,869						3,433						2,444						—						—						294,112
Consumer
Pass			3,379						509						9,848						27,370						15,563						19,855						116,605						435						193,564
SS			—						—						168						559						320						1,120						44						100						2,311
Total			3,379						509						10,016						27,929						15,883						20,975						116,649						535						195,875
Loans receivable
Pass			795,979						752,624						380,997						525,352						241,405						955,280						263,400						607						3,915,644
SM			212						10,202						2,656						14,496						2,902						33,301						5,433						247						69,449
SS			773						188						2,549						4,061						8,228						45,980						3,718						268						65,765
Total			$	796,964					$	763,014					$	386,202					$	543,909					$	252,535					$	1,034,561					$	272,551					$	1,122					$	4,050,858

1) Represents the loans receivable balance at December 31, 2022 which was converted from a revolving loan to an amortizing loan during the year ended December 31, 2022.

Schedule of nonaccrual loans

The following tables present the amortized cost of nonaccrual loans for the dates indicated:

			March 31, 2023
			Nonaccrual without ACL						Nonaccrual with ACL						Total Nonaccrual
			(In thousands)
Commercial business:
Commercial and industrial			$	3,964					$	641					$	4,605
Owner-occupied CRE			—						210						210
Total			$	3,964					$	851					$	4,815

			December 31, 2022
			Nonaccrual without ACL						Nonaccrual with ACL						Total Nonaccrual
			(In thousands)
Commercial business:
Commercial and industrial			$	4,503					$	1,154					$	5,657
Owner-occupied CRE			—						212						212
Total commercial business			4,503						1,366						5,869
Real estate construction and land development:
Commercial and multifamily			—						37						37
Total			$	4,503					$	1,403					$	5,906

The following table presents the reversal of interest income on loans due to the write-off of accrued interest receivable upon the initial classification of loans as nonaccrual loans and the interest income recognized due to payment in full or sale of previously classified nonaccrual loans during the following periods:

			Three Months Ended March 31, 2023												Three Months Ended March 31, 2022
			Interest Income Reversed						Interest Income Recognized						Interest Income Reversed						Interest Income Recognized
			(In thousands)
Commercial business:
Commercial and industrial			$	(14)					$	28					$	(2)					$	139
Owner-occupied CRE			—						—						—						53
Non-owner occupied CRE			—						—						—						774
Total commercial business			(14)						28						(2)						966
Residential real estate			—						—						—						19
Consumer			—						—						—						68
Total			$	(14)					$	28					$	(2)					$	1,053

Financing Receivable, Past Due [Table Text Block]

The amortized cost of past due loans as of March 31, 2023 and December 31, 2022 were as follows:

			March 31, 2023
			30-89 Days						90 Days or Greater						Total Past  Due						Current						Loans Receivable
			(In thousands)
Commercial business:
Commercial and industrial			$	1,984					$	4,855					$	6,839					$	678,159					$	684,998

			March 31, 2023
			30-89 Days						90 Days or Greater						Total Past  Due						Current						Loans Receivable
			(In thousands)
SBA PPP			—						—						—						900						900
Owner-occupied CRE			840						635						1,475						947,589						949,064
Non-owner occupied CRE			—						—						—						1,601,789						1,601,789
Total commercial business			2,824						5,490						8,314						3,228,437						3,236,751
Residential real estate			2,115						—						2,115						361,662						363,777
Real estate construction and land development:
Residential			—						—						—						72,926						72,926
Commercial and multifamily			333						—						333						270,214						270,547
Total real estate construction and land development			333						—						333						343,140						343,473
Consumer			782						515						1,297						182,174						183,471
Total			$	6,054					$	6,005					$	12,059					$	4,115,413					$	4,127,472

			December 31, 2022
			30-89 Days						90 Days or Greater						Total Past  Due						Current						Loans Receivable
			(In thousands)
Commercial business:
Commercial and industrial			$	586					$	6,104					$	6,690					$	685,410					$	692,100
SBA PPP			236						—						236						1,232						1,468
Owner-occupied CRE			—						189						189						936,851						937,040
Non-owner occupied CRE			—						—						—						1,586,632						1,586,632
Total commercial business			822						6,293						7,115						3,210,125						3,217,240
Residential real estate			3,066						—						3,066						340,565						343,631
Real estate construction and land development:
Residential			—						—						—						80,074						80,074
Commercial and multifamily			—						—						—						214,038						214,038
Total real estate construction and land development			—						—						—						294,112						294,112
Consumer			1,561						—						1,561						194,314						195,875
Total			$	5,449					$	6,293					$	11,742					$	4,039,116					$	4,050,858

Loans and Lease Receivable Collateral for Secured Borrowings [Table Text Block]

The type of collateral securing loans individually evaluated for credit losses and for which the repayment was expected to be provided substantially through the operation or sale of the collateral as of March 31, 2023 and December 31, 2022 was as follows, with balances representing the amortized cost of the loan classified by the primary collateral category of each loan if multiple collateral sources secure the loan:

			March 31, 2023
			CRE						Farmland						Residential Real Estate						Equipment						Total
			(In thousands)
Commercial business:
Commercial and industrial			$	499					$	1,977					$	664					$	468					$	3,608
Owner-occupied CRE			189						—						—						—						189
Total			$	688					$	1,977					$	664					$	468					$	3,797

			December 31, 2022
			CRE						Farmland						Residential Real Estate												Equipment						Total
			(In thousands)
Commercial business:
Commercial and industrial			$	1,239					$	1,977					$	929											$	—					$	4,145
Owner-occupied CRE			189						—						—												—						189
Total			$	1,428					$	1,977					$	929											$	—					$	4,334

Troubled debt restructurings on financing receivables

The following table presents modifications of loans by type of modification at amortized cost that were modified as a result of experiencing both financial difficulty and modified during the period indicated:

															Three Months Ended March 31, 2023
															Term Extension																		Term Extension & Int. Rate Reduction						Total Modified Loans						% of Modified Loans to Loans Receivable, net
																		(Dollars in thousands)
Commercial business:
Commercial and industrial															$	286																	$	—					$	286					0.04		%
Non-owner occupied CRE															2,749																		—						2,749						0.17
Total commercial business															3,035																		—						3,035						0.09
Consumer															—																		25						25						0.01
Total															$	3,035																	$	25					$	3,060					0.07		%

The following table presents the financial effect of the loan modifications presented in the preceding table during the the period indicated:

									Three Months Ended March 31, 2023
									Weighted Average % of Interest Rate Reductions						Weighted Average Years of Term Extensions
Commercial business:
Commercial and industrial									—		%				0.44
Non-owner occupied CRE									—						1.00
Total commercial business									—						0.95
Consumer									1.00						2.12
Total									1.00		%				0.96

There were no modified loans past due or on nonaccrual as of March 31, 2023.

There were no modified loans made during the three months ended March 31, 2023, that subsequently defaulted.

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-Section 50
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-URI https://asc.fasb.org//1943274/2147479319/326-20-50-14

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Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
-Paragraph 16
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-URI https://asc.fasb.org//1943274/2147479319/326-20-50-16

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