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Loans Receivable (Tables)

6 Months Ended

Jun. 30, 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:

			June 30, 2023						December 31, 2022
			(In thousands)
Commercial business:
Commercial and industrial			$	708,021					$	692,100
SBA PPP			567						1,468
Owner-occupied CRE			958,912						937,040
Non-owner occupied CRE			1,644,490						1,586,632
Total commercial business			3,311,990						3,217,240
Residential real estate			375,659						343,631
Real estate construction and land development:
Residential			78,660						80,074
Commercial and multifamily			307,041						214,038
Total real estate construction and land development			385,701						294,112
Consumer			177,994						195,875
Loans receivable			4,251,344						4,050,858
ACL on loans			(46,408)						(42,986)
Loans receivable, net			$	4,204,936					$	4,007,872
Balances included in the amortized cost of loans receivable:
Unamortized net discount on acquired loans			$	(2,151)					$	(2,501)
Unamortized net deferred fee			$	(10,621)					$	(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 January 1, 2023.

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

			June 30, 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			$	50,075					$	171,694					$	88,238					$	76,218					$	48,393					$	93,741					$	136,899					$	89					$	665,347
SM			—						567						180						1,763						4,541						4,821						8,512						—						20,384
SS			—						1,216						164						1,599						3,095						5,271						10,945						—						22,290
Total			50,075						173,477						88,582						79,580						56,029						103,833						156,356						89						708,021
SBA PPP
Pass			—						—						492						75						—						—						—						—						567
Owner-occupied CRE
Pass			48,375						138,539						166,088						88,519						152,446						322,680						—						—						916,647
SM			—						—						3,853						2,027						318						19,892						—						—						26,090
SS			—						—						—						663						—						15,512						—						—						16,175
Total			48,375						138,539						169,941						91,209						152,764						358,084						—						—						958,912
Non-owner occupied CRE
Pass			97,701						239,551						208,212						156,484						243,460						657,188						—						—						1,602,596
SM			—						604						8,260						—						578						19,656						—						—						29,098
SS			—						—						—						—						—						12,796						—						—						12,796
Total			97,701						240,155						216,472						156,484						244,038						689,640						—						—						1,644,490
Total commercial business
Pass			196,151						549,784						463,030						321,296						444,299						1,073,609						136,899						89						3,185,157
SM			—						1,171						12,293						3,790						5,437						44,369						8,512						—						75,572
SS			—						1,216						164						2,262						3,095						33,579						10,945						—						51,261
Total			196,151						552,171						475,487						327,348						452,831						1,151,557						156,356						89						3,311,990
Commercial business gross charge-offs
Current period			—						—						—						61						—						100						—						—						161
Residential real estate
Pass(1)			32,678						136,416						148,353						25,345						15,644						17,055						—						—						375,491
SS			—						—						—						—						—						168						—						—						168
Total			32,678						136,416						148,353						25,345						15,644						17,223						—						—						375,659
Residential real estate gross charge-offs:
Current period			—						—						—						—						—						—						—						—						—

			June 30, 2023
			Term Loans Amortized Cost Basis by Origination Year																																				Revolving Loans						Revolving Loans Converted (1)						Loans Receivable
			2023						2022						2021						2020						2019						Prior
Real estate construction and land development:
Residential
Pass			17,930						40,499						9,970						1,766						840						1,792						760						—						73,557
SS			784						—						4,319						—						—						—						—						—						5,103
Total			18,714						40,499						14,289						1,766						840						1,792						760						—						78,660
Commercial and multifamily
Pass			10,033						138,805						138,228						6,711						780						3,433						—						—						297,990
SM			—						—						—						2,984						5,687						380						—						—						9,051
Total			10,033						138,805						138,228						9,695						6,467						3,813						—						—						307,041
Total real estate construction and land development
Pass			27,963						179,304						148,198						8,477						1,620						5,225						760						—						371,547
SM			—						—						—						2,984						5,687						380						—						—						9,051
SS			784						—						4,319						—						—						—						—						—						5,103
Total			28,747						179,304						152,517						11,461						7,307						5,605						760						—						385,701
Real estate construction and land development gross charge-offs:
Current period			—						—						—						—						—						—						—						—						—
Consumer
Pass			962						2,809						415						7,995						20,989						26,490						115,616						597						175,873
SS			—						—						—						152						446						1,135						366						22						2,121
Total			962						2,809						415						8,147						21,435						27,625						115,982						619						177,994
Consumer gross charge-offs:
Current period			—						—						12						13						53						70						149						—						297
Loans receivable
Pass			257,754						868,313						759,996						363,113						482,552						1,122,379						253,275						686						4,108,068
SM			—						1,171						12,293						6,774						11,124						44,749						8,512						—						84,623
SS			784						1,216						4,483						2,414						3,541						34,882						11,311						22						58,653
Total			$	258,538					$	870,700					$	776,772					$	372,301					$	497,217					$	1,202,010					$	273,098					$	708					$	4,251,344
Gross charge-offs:
Current period total			$	—					$	—					$	12					$	74					$	53					$	170					$	149					$	—					$	458

(1) Represents the loans receivable balance at June 30, 2023 which was converted from a revolving loan to a non-revolving amortizing loan during the six months ended months ended June 30, 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

			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)
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
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 non-revolving amortizing loan during the year ended December 31, 2022.

Schedule of nonaccrual loans

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

			June 30, 2023
			Nonaccrual without ACL						Nonaccrual with ACL						Total Nonaccrual
			(In thousands)
Commercial business:
Commercial and industrial			$	3,919					$	503					$	4,422
Owner-occupied CRE			—						208						208
Total			$	3,919					$	711					$	4,630

			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 June 30, 2023												Three Months Ended June 30, 2022
			Interest Income Reversed						Interest Income Recognized						Interest Income Reversed						Interest Income Recognized
			(In thousands)
Commercial business:
Commercial and industrial			$	—					$	2					$	(12)					$	90
Total			$	—					$	2					$	(12)					$	90

			Six Months Ended June 30, 2023												Six Months Ended June 30, 2022
			Interest Income Reversed						Interest Income Recognized						Interest Income Reversed						Interest Income Recognized
			(in thousands)
Commercial business:
Commercial and industrial			$	(14)					$	30					$	(14)					$	229
Owner-occupied CRE			—						—						—						53
Non-owner occupied CRE			—						—						—						774
Total commercial business			(14)						30						(14)						1,056
Residential real estate			—						—						—						19
Consumer			—						—						—						68
Total			$	(14)					$	30					$	(14)					$	1,143

Financing Receivable, Past Due [Table Text Block]

The following table presents the amortized cost of past due loans at the dates indicated:

			June 30, 2023
			30-89 Days						90 Days or Greater						Total Past  Due						Current						Loans Receivable
			(In thousands)
Commercial business:
Commercial and industrial			$	953					$	4,605					$	5,558					$	702,463					$	708,021
SBA PPP			—						—						—						567						567
Owner-occupied CRE			—						751						751						958,161						958,912
Non-owner occupied CRE			—						—						—						1,644,490						1,644,490
Total commercial business			953						5,356						6,309						3,305,681						3,311,990
Residential real estate			—						—						—						375,659						375,659
Real estate construction and land development:
Residential			—						—						—						78,660						78,660
Commercial and multifamily			—						—						—						307,041						307,041
Total real estate construction and land development			—						—						—						385,701						385,701
Consumer			625						325						950						177,044						177,994
Total			$	1,578					$	5,681					$	7,259					$	4,244,085					$	4,251,344

			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 following tables present 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 at the dates indicated, 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:

			June 30, 2023
			CRE						Farmland						Residential Real Estate						Equipment						Total
			(In thousands)
Commercial business:
Commercial and industrial			$	499					$	1,977					$	652					$	439					$	3,567
Owner-occupied CRE			189						—						—						—						189
Total			$	688					$	1,977					$	652					$	439					$	3,756

			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 June 30, 2023
															Term Extension																								Total Modified Loans						% of Modified Loans to Loans Receivable, net
																		(Dollars in thousands)
Commercial business:
Commercial and industrial															$	5,899																							$	5,899					0.83		%
Real estate construction and land development:
Commercial and multifamily															2,984																								2,984						0.97
Consumer															29																								29						0.02
Total															$	8,912																							$	8,912					0.21		%

															Six Months Ended June 30, 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															$	5,899																	$	—					$	5,899					0.83		%
Non-owner occupied CRE															2,730																		—						2,730						0.17
Total commercial business															8,629																		—						8,629						0.26

Real estate construction and land development:
Commercial and multifamily															2,984																		—						2,984						0.97		%
Consumer															29																		18						47						0.03		%
Total															$	11,642																	$	18					$	11,660					0.27		%

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

Three Months Ended June 30, 2023

Weighted Average Years of Term Extensions

Commercial business:

Commercial and industrial

0.50

Real estate construction and land development:

Commercial and multifamily

0.42

Consumer

2.88

Total

0.48

															Six Months Ended June 30, 2023
															Weighted Average % of Interest Rate Reductions						Weighted Average Years of Term Extensions
Commercial business:
Commercial and industrial															—		%				0.50
Non-owner occupied CRE															—						1.00
Total commercial business															—						0.66
Residential real estate															—						0.00
Real estate construction and land development:
Commercial and multifamily															—						0.42
Consumer															1.00						2.61
Total															1.00		%				0.61

There were no modified loans past due or on nonaccrual as of June 30, 2023.

There were no modified loans made during the three months and six months ended June 30, 2023, that subsequently defaulted.

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Credit Loss, Financial Instrument

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Tabular disclosure of financing receivables by credit quality indicator. The credit quality indicator is a statistic about the credit quality of financing receivables. Examples include, but not limited to, consumer credit risk scores, credit-rating-agency ratings, an entity's internal credit risk grades, loan-to-value ratios, collateral, collection experience and other internal metrics.

+ References

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-Topic 326
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-Name Accounting Standards Codification
-Section 50
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-Publisher FASB
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+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 326
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479319/326-20-50-14

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 326
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 80
-Publisher FASB
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Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
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-Topic 310
-SubTopic 10
-Section 50
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Tabular disclosure of financing receivable on nonaccrual status.

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- Definition

Tabular disclosure of financing receivable modified for debtor experiencing financial difficulty.

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Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 310
-SubTopic 10
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-Section 55
-Paragraph 12A
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