XML 35 R26.htm IDEA: XBRL DOCUMENT v3.22.2
Allowance for Credit Losses (“ACL”) on Loans (Tables)
 6 Months Ended
Jun. 30, 2022
Credit Loss [Abstract]  
Schedule of Allowance for Credit Losses for Off-Balance Sheet credit Exposures
The table below summarizes the allowance for credit losses for off-balance sheet credit exposures (in thousands):

Three Months Ended June 30, 2022Six Months Ended
June 30, 2022
Balance at beginning of period$2,131 $1,852 
Provision for credit losses349 628 
Balance at end of period$2,480 $2,480 
Allowance For Loan Losses And Loans Receivable By Portfolio Segment Table
The following tables set forth activity in our allowance for credit losses on loans, by loan type, as of, and for the three and six months ended June 30, 2022, and June 30, 2021 (in thousands):

 
Three Months Ended June 30, 2022
 Real Estate     
 
Commercial (1)
One-to-Four FamilyHome Equity and Lines of CreditConstruction and LandCommercial and IndustrialOtherTotal Loans (excluding PCD)PCDTotal
Allowance for credit losses:
Beginning balance$27,247 $3,589 $679 $166 $2,954 $9 $34,644 $4,630 $39,274 
Charge-offs— — — — — — — (525)(525)
Recoveries19 — — — 114 — 133 — 133 
Provisions (credit)799 (584)123 119 (363)2 96 53 149 
Ending balance$28,065 $3,005 $802 $285 $2,705 $11 $34,873 $4,158 $39,031 

 
Three Months Ended June 30, 2021
 Real Estate     
 
Commercial (1)
One-to-Four FamilyHome Equity and Lines of CreditConstruction and LandCommercial and IndustrialOtherTotal Loans (excluding PCD)PCDTotal
Allowance for credit losses:         
Beginning balance28,882 5,172 643 269 2,940 9 37,915 5,282 43,197 
Charge-offs— — — — (12)— (12)— (12)
Recoveries— 1 1 — 7 — 9 — 9 
Provisions (credit)(2,342)(563)19 (10)(341)(2)(3,239)(462)(3,701)
Ending balance$26,540 $4,610 $663 $259 $2,594 $7 $34,673 $4,820 $39,493 
(1) Commercial includes commercial real estate loans collateralized by owner-occupied, non-owner occupied, and multifamily properties.
 Six Months Ended June 30, 2022
 Real Estate     
 
Commercial (1)
One-to-Four FamilyHome Equity and Lines of CreditConstruction and LandCommercial and IndustrialOtherTotal Loans (excluding PCD)PCDTotal
Allowance for credit losses:
Beginning balance$26,785 $3,545 $560 $169 $3,173 $9 $34,241 $4,732 $38,973 
Charge-offs— — — — (185)— (185)(525)(710)
Recoveries97 — — — 119 — 216 — 216 
Provisions (credit)1,183 (540)242 116 (402)2 601 (49)552 
Ending balance$28,065 $3,005 $802 $285 $2,705 $11 $34,873 $4,158 $39,031 
 
Six Months Ended June 30, 2021
 Real Estate     
 
Commercial (1)
One-to-Four FamilyHome Equity and Lines of CreditConstruction and LandCommercial and IndustrialOtherTotal Loans (excluding PCD)PCDTotal
Allowance for credit losses:         
Beginning balance$33,005 $207 $260 $1,214 $1,842 $198 $36,726 $881 $37,607 
Impact of CECL adoption(1,949)5,233 419 (921)947 (188)3,541 6,812 10,353 
Balance at January 1, 202131,056 5,440 679 293 2,789 10 40,267 7,693 47,960 
Charge-offs— (21)— — (12)— (33)(2,411)(2,444)
Recoveries19 2 1 — 28 2 52 52 
Provisions (credit)(4,535)(811)(17)(34)(211)(5)(5,613)(462)(6,075)
Ending balance$26,540 $4,610 $663 $259 $2,594 $7 $34,673 $4,820 $39,493 
(1) Commercial includes commercial real estate loans collateralized by owner-occupied, non-owner occupied, and multifamily properties.
The following tables detail the amount of loans receivable held-for-investment, net of deferred loan fees and costs, that are evaluated, individually and collectively, for impairment, and the related portion of the allowance for credit losses that is allocated to each loan portfolio segment, at June 30, 2022 and December 31, 2021 (in thousands):
 June 30, 2022
 Real Estate     
 
Commercial (1)
One-to-Four FamilyHome Equity and Lines of CreditConstruction and LandCommercial and IndustrialOtherTotal Loans (excluding PCD)PCDTotal
Allowance for credit losses:
Ending balance: individually evaluated for impairment$16 $— $3 $— $18 $— $37 $— $37 
Ending balance: collectively evaluated for impairment28,048 3,005 800 285 2,687 11 34,836 — 34,836 
Ending balance: PCD loans evaluated for impairment (2)
— — — — — — — 4,158 4,158 
Loans, net:         
Ending balance$3,621,188 $185,376 $137,868 $18,555 $133,422 $2,312 $4,098,721 $13,136 $4,111,857 
Ending balance: individually evaluated for impairment8,679 692 28 — 99 9,498 — 9,498 
Ending balance: collectively evaluated for impairment3,612,509 184,684 137,840 18,555 121,374 2,312 4,077,274 — 4,077,274 
Ending balance: PCD loans evaluated for impairment (2)
— — — — — — — 13,136 13,136 
PPP loans not evaluated for impairment (3)
— — — — 11,949 — 11,949 — 11,949 

 December 31, 2021
 Real Estate     
 
Commercial (1)
One-to-Four FamilyHome Equity and Lines of CreditConstruction and LandCommercial and IndustrialOtherTotal Loans (excluding PCD)PCDTotal
Allowance for credit losses:
Ending balance: individually evaluated for impairment$25 $2 $2 $— $1 $— $30 $— $30 
Ending balance: collectively evaluated for impairment26,760 3,543 558 169 3,172 9 34,211 — 34,211 
Ending balance: PCD loans evaluated for impairment (2)
— — — — — — — 4,732 4,732 
Loans, net:         
Ending balance$3,326,662 $183,665 $109,956 $27,495 $141,005 $2,015 $3,790,798 $15,819 $3,806,617 
Ending balance: individually evaluated for impairment8,352 1,562 38 — 34 — 9,986 — 9,986 
Ending balance: collectively evaluated for impairment3,318,310 182,103 109,918 27,495 100,454 2,015 3,740,295 — 3,740,295 
Ending balance: PCD loans evaluated for impairment (2)
— — — — — — — 15,819 15,819 
PPP loans not evaluated for impairment (3)
— — — — 40,517 — 40,517 — 40,517 
(1) Commercial includes commercial real estate loans collateralized by owner-occupied, non-owner occupied, and multifamily properties.
(2) Upon adoption of CECL, the Company elected to maintain pools of PCD loans that were previously accounted for under ASC 310-30, and will continue to evaluate PCD loans under this guidance.
(3) PPP loans are guaranteed by the SBA and therefore excluded from the allowance for credit losses.