ALLOWANCE FOR CREDIT LOSSES (Tables)

9 Months Ended

Sep. 30, 2021

ALLOWANCE FOR CREDIT LOSSES

Bank's Allowance for Credit Losses

The following is a roll forward of the Bank’s allowance for credit losses related to loans for the following periods:


		Beginning			Adoption of			Provision (benefit) for									Ending
(dollars in thousands)		Balance			ASC 326			Credit Losses			Charge-offs			Recoveries			Balance
Three Months Ended September 30, 2021:
Real estate loans:
Residential properties		$	7,236		$	—		$	(1,507)		$	—		$	—		$	5,729
Commercial properties			5,485			—			(148)			—			—			5,337
Land and construction			1,984			—			(258)			—			—			1,726
Commercial and industrial loans			7,458			—			492			(219)			355			8,086
Consumer loans			109			—			(2)			—			—			107
Total		$	22,272		$	—		$	(1,423)		$	(219)		$	355		$	20,985

Nine Months Ended September 30, 2021:
Real estate loans:
Residential properties		$	5,115		$	—		$	614		$	—		$	—		$	5,729
Commercial properties			8,711			—			(3,374)			—			—			5,337
Land and construction			892			—			834			—			—			1,726
Commercial and industrial loans			9,249			—			(1,400)			(627)			864			8,086
Consumer loans			233			—			(126)			—			—			107
Total		$	24,200		$	—		$	(3,452)		$	(627)		$	864		$	20,985

Year Ended December 31, 2020:
Real estate loans:
Residential properties		$	8,423		$	363		$	(3,671)		$	—		$	—		$	5,115
Commercial properties			4,166			3,760			785			—			—			8,711
Land and construction			573			92			227			—			—			892
Commercial and industrial loans			7,448			—			2,642			(1,844)			1,003			9,249
Consumer loans			190			—			43			—			—			233
Total		$	20,800		$	4,215		$	26		$	(1,844)		$	1,003		$	24,200

Balance in Allowance for Credit Losses and Recorded Investment in Loans by Impairment

The following table presents the balance in the allowance for credit losses and the recorded investment in loans by impairment method as of:


		Allowance for Credit Losses
		Loans Evaluated
(dollars in thousands)		Individually			Collectively			Total
September 30, 2021:
Allowance for credit losses:
Real estate loans:
Residential properties		$	1,174		$	4,555		$	5,729
Commercial properties			411			4,926			5,337
Land and construction			—			1,726			1,726
Commercial and industrial loans			590			7,496			8,086
Consumer loans			—			107			107
Total		$	2,175		$	18,810		$	20,985
Loans:
Real estate loans:
Residential properties		$	16,417		$	3,332,782		$	3,349,199
Commercial properties			13,931			656,395			670,326
Land and construction			—			63,701			63,701
Commercial and industrial loans			7,611			1,208,630			1,216,241
Consumer loans			—			9,492			9,492
Total		$	37,959		$	5,271,000		$	5,308,959

December 31, 2020:
Allowance for credit losses:
Real estate loans:
Residential properties		$	1,059		$	4,056		$	5,115
Commercial properties			374			8,337			8,711
Land and construction			—			892			892
Commercial and industrial loans			956			8,293			9,249
Consumer loans			—			233			233
Total		$	2,389		$	21,811		$	24,200
Loans:
Real estate loans:
Residential properties		$	12,414		$	3,041,142		$	3,053,556
Commercial properties			17,304			730,503			747,807
Land and construction			—			55,832			55,832
Commercial and industrial loans			6,472			912,204			918,676
Consumer loans			—			18,888			18,888
Total		$	36,190		$	4,758,569		$	4,794,759

Risk Category of Loans Based on Year of Origination

The following tables present risk categories of loans based on year of origination, as of:


																				Revolving
(dollars in thousands)		2021			2020			2019			2018			2017			Prior			Loans			Total
September 30, 2021:
Loans secured by Real Estate:
Residential
Multifamily
Pass		$	552,257		$	887,859		$	492,189		$	305,631		$	174,156		$	114,690		$	—		$	2,526,782
Special Mention			—			—			1,182			—			—			—			—			1,182
Substandard			—			—			—			—			—			—			—			—
Total		$	552,257		$	887,859		$	493,371		$	305,631		$	174,156		$	114,690		$	—		$	2,527,964

Single Family
Pass		$	222,918		$	132,447		$	57,672		$	71,626		$	59,101		$	239,357		$	21,671		$	804,792
Special Mention			—			—			—			—			—			—			26			26
Substandard			—			—			—			—			1,887			11,269			3,261			16,417
Total		$	222,918		$	132,447		$	57,672		$	71,626		$	60,988		$	250,626		$	24,958		$	821,235

Commercial Real Estate
Pass		$	55,894		$	39,467		$	76,225		$	93,801		$	120,021		$	242,375		$	—		$	627,783
Special Mention			—			—			10,595			10,674			—			5,895			—			27,164
Substandard			—			—			5,861			—			2,252			7,266			—			15,379
Total		$	55,894		$	39,467		$	92,681		$	104,475		$	122,273		$	255,536		$	—		$	670,326

Land and construction
Pass		$	4,360		$	(13)		$	17,208		$	31,060		$	10,505		$	581		$	—		$	63,701
Special Mention			—			—			—			—			—			—			—			—
Substandard			—			—			—			—			—			—			—			—
Total		$	4,360		$	(13)		$	17,208		$	31,060		$	10,505		$	581		$	—		$	63,701

Commercial
Pass		$	357,032		$	206,077		$	99,384		$	24,709		$	7,014		$	22,685		$	483,029		$	1,199,930
Special Mention			—			1,383			904			824			—			51			1,241			4,403
Substandard			—			1,969			1,847			1,007			214			2,564			4,307			11,908
Total		$	357,032		$	209,429		$	102,135		$	26,540		$	7,228		$	25,300		$	488,577		$	1,216,241

Consumer
Pass		$	39		$	1,142		$	—		$	1,249		$	—		$	81		$	6,981		$	9,492
Special Mention			—			—			—			—			—			—			—			—
Substandard			—			—			—			—			—			—			—			—
Total		$	39		$	1,142		$	—		$	1,249		$	—		$	81		$	6,981		$	9,492

Total loans
Pass		$	1,192,500		$	1,266,979		$	742,678		$	528,076		$	370,797		$	619,769		$	511,681		$	5,232,480
Special Mention			—			1,383			12,681			11,498			—			5,946			1,267			32,775
Substandard			—			1,969			7,708			1,007			4,353			21,099			7,568			43,704
Total		$	1,192,500		$	1,270,331		$	763,067		$	540,581		$	375,150		$	646,814		$	520,516		$	5,308,959


																				Revolving
(dollars in thousands)		2020			2019			2018			2017			2016			Prior			Loans			Total
December 31, 2020:
Loans secured by Real Estate:
Residential
Multifamily
Pass		$	774,701		$	638,237		$	469,866		$	218,470		$	82,941		$	63,328		$	—		$	2,247,543
Special Mention			—			—			—			—			—			—			—			—
Substandard			—			—			—			—			—			—			—			—
Total		$	774,701		$	638,237		$	469,866		$	218,470		$	82,941		$	63,328		$	—		$	2,247,543

Single Family
Pass		$	173,563		$	83,311		$	110,560		$	95,888		$	107,568		$	196,692		$	25,014		$	792,596
Special Mention			—			—			—			986			—			—			—			986
Substandard			—			—			—			1,946			—			7,134			3,351			12,431
Total		$	173,563		$	83,311		$	110,560		$	98,820		$	107,568		$	203,826		$	28,365		$	806,013

Commercial Real Estate
Pass		$	46,260		$	100,432		$	120,230		$	129,120		$	119,719		$	194,533		$	—		$	710,294
Special Mention			—			743			16,278			—			2,333			157			—			19,511
Substandard			—			5,929			—			2,336			2,515			7,222			—			18,002
Total		$	46,260		$	107,104		$	136,508		$	131,456		$	124,567		$	201,912		$	—		$	747,807

Land and construction
Pass		$	257		$	15,923		$	27,792		$	10,532		$	706		$	622		$	—		$	55,832
Special Mention			—			—			—			—			—			—			—			—
Substandard			—			—			—			—			—			—			—			—
Total		$	257		$	15,923		$	27,792		$	10,532		$	706		$	622		$	—		$	55,832

Commercial
Pass		$	377,500		$	146,279		$	54,910		$	15,868		$	13,180		$	16,823		$	270,604		$	895,164
Special Mention			2,058			3,922			1,868			579			297			448			6,107			15,279
Substandard			1,226			316			1,188			259			2,459			281			2,504			8,233
Total		$	380,784		$	150,517		$	57,966		$	16,706		$	15,936		$	17,552		$	279,215		$	918,676

Consumer
Pass		$	2,557		$	—		$	1,321		$	3		$	6,784		$	100		$	8,123		$	18,888
Special Mention			—			—			—			—			—			—			—			—
Substandard			—			—			—			—			—			—			—			—
Total		$	2,557		$	—		$	1,321		$	3		$	6,784		$	100		$	8,123		$	18,888

Total loans
Pass		$	1,374,838		$	984,182		$	784,679		$	469,881		$	330,898		$	472,098		$	303,741		$	4,720,317
Special Mention			2,058			4,665			18,146			1,565			2,630			605			6,107			35,776
Substandard			1,226			6,245			1,188			4,541			4,974			14,637			5,855			38,666
Total		$	1,378,122		$	995,092		$	804,013		$	475,987		$	338,502		$	487,340		$	315,703		$	4,794,759

Amortized Cost Basis of Collateral Dependent Loans Individually Evaluated to Determine Credit Losses and Related ACL Allocated to Loans

The following table presents the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses and the related allowance for credit losses (“ACL”) allocated to these loans:


								Equipment/							ACL
(dollars in thousands)		Real Estate			Cash			Receivables			Total				Allocation
September 30, 2021:
Loans secured by Real Estate:
Residential properties
Single family		$	9,918		$	—		$	—		$	9,918		$	1,157
Commercial loans			—			250			—			250			—
Total		$	9,918		$	250		$	—		$	10,168		$	1,157

December 31, 2020:
Loans secured by Real Estate:
Residential properties
Single family		$	10,144		$	—		$	—		$	10,144		$	1,051
Commercial loans			—			250			122			372			44
Total		$	10,144		$	250		$	122		$	10,516		$	1,095