ALLOWANCE FOR CREDIT LOSSES (Tables)

3 Months Ended

Mar. 31, 2022

ALLOWANCE FOR CREDIT LOSSES

Bank's Allowance for Credit Losses

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


								Initial Allowance
		Beginning			Provision for			on Acquired									Ending
(dollars in thousands)		Balance			Credit Losses			PCD Loans			Charge-offs			Recoveries			Balance
Three Months Ended March 31, 2022:
Real estate loans:
Residential properties		$	2,637		$	561		$	—		$	—		$	—		$	3,198
Commercial properties			17,049			(1,413)			—			—			—			15,636
Land and construction			1,995			(227)			—			—			—			1,768
Commercial and industrial loans			11,992			149			—			(145)			134			12,130
Consumer loans			103			(13)			—			—			—			90
Total		$	33,776		$	(943)		$			$	(145)		$	134		$	32,822

Three Months Ended March 31, 2021:
Real estate loans:
Residential properties		$	5,115		$	918		$	—		$	—		$	—		$	6,033
Commercial properties			8,711			(2,755)			—			—			—			5,956
Land and construction			892			3,070			—			—			—			3,962
Commercial and industrial loans			9,249			(2,379)			—			(214)			406			7,062
Consumer loans			233			(66)			—			—			—			167
Total		$	24,200		$	(1,212)		$	—		$	(214)		$	406		$	23,180

Year Ended December 31, 2021:
Real estate loans:
Residential properties		$	5,115		$	(1,453)		$	93		$	(1,118)		$	—		$	2,637
Commercial properties			8,711			774			7,564			—			—			17,049
Land and construction			892			1,051			52			—			—			1,995
Commercial and industrial loans			9,249			614			1,836			(706)			999			11,992
Consumer loans			233			(130)			—			—			—			103
Total		$	24,200		$	856		$	9,545		$	(1,824)		$	999		$	33,776

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
March 31, 2022:
Allowance for credit losses:
Real estate loans:
Residential properties		$	110		$	3,088		$	3,198
Commercial properties			7,662			7,974			15,636
Land and construction			69			1,699			1,768
Commercial and industrial loans			1,615			10,515			12,130
Consumer loans			—			90			90
Total		$	9,456		$	23,366		$	32,822
Loans:
Real estate loans:
Residential properties		$	8,524		$	4,201,222		$	4,209,746
Commercial properties			41,664			1,223,133			1,264,797
Land and construction			698			158,533			159,231
Commercial and industrial loans			10,220			1,743,680			1,753,900
Consumer loans			—			9,790			9,790
Total		$	61,106		$	7,336,358		$	7,397,464

December 31, 2021:
Allowance for credit losses:
Real estate loans:
Residential properties		$	111		$	2,526		$	2,637
Commercial properties			7,967			9,082			17,049
Land and construction			52			1,943			1,995
Commercial and industrial loans			2,386			9,606			11,992
Consumer loans			—			103			103
Total		$	10,516		$	23,260		$	33,776
Loans:
Real estate loans:
Residential properties		$	9,593		$	3,822,902		$	3,832,495
Commercial properties			41,313			1,268,262			1,309,575
Land and construction			694			155,232			155,926
Commercial and industrial loans			9,963			1,587,902			1,597,865
Consumer loans			—			10,867			10,867
Total		$	61,563		$	6,845,165		$	6,906,728

Risk Category of Loans Based on Year of Origination


																				Revolving
(dollars in thousands)		2022			2021			2020			2019			2018			Prior			Loans			Total
March 31, 2022:
Loans secured by Real Estate:
Residential
Multifamily
Pass		$	550,899		$	1,090,423		$	842,736		$	371,305		$	223,541		$	217,085		$	—		$	3,295,989
Special Mention			—			—			—			—			—			—			—			—
Substandard			—			—			—			—			—			—			—			—
Total		$	550,899		$	1,090,423		$	842,736		$	371,305		$	223,541		$	217,085		$	—		$	3,295,989

Single Family
Pass		$	47,217		$	298,721		$	111,237		$	46,046		$	54,166		$	275,813		$	72,007		$	905,207
Special Mention			—			—			—			—			—			—			26			26
Substandard			—			—			—			—			—			8,296			228			8,524
Total		$	47,217		$	298,721		$	111,237		$	46,046		$	54,166		$	284,109		$	72,261		$	913,757

Commercial Real Estate
Pass		$	42,530		$	186,500		$	109,749		$	144,150		$	175,153		$	514,500		$	—		$	1,172,582
Special Mention			—			—			2			15,872			12,888			12,889			—			41,651
Substandard			—			—			872			13,637			11,054			25,001			—			50,564
Total		$	42,530		$	186,500		$	110,623		$	173,659		$	199,095		$	552,390		$	—		$	1,264,797

Land and construction
Pass		$	11,784		$	45,496		$	34,478		$	36,069		$	21,438		$	9,268		$	—		$	158,533
Special Mention			—			—			—			—			—			—			—			—
Substandard			—			—			698			—			—			—			—			698
Total		$	11,784		$	45,496		$	35,176		$	36,069		$	21,438		$	9,268		$	—		$	159,231

Commercial
Pass		$	190,819		$	450,214		$	206,463		$	99,132		$	46,572		$	53,223		$	686,999		$	1,733,422
Special Mention			—			—			941			466			—			—			4,854			6,261
Substandard			4			—			2,734			1,677			1,048			2,766			5,988			14,217
Total		$	190,823		$	450,214		$	210,138		$	101,275		$	47,620		$	55,989		$	697,841		$	1,753,900

Consumer
Pass		$	54		$	1,126		$	28		$	691		$	765		$	159		$	6,829		$	9,652
Special Mention			—			—			—			—			—			—			—			—
Substandard			—			—			—			138			—			—			—			138
Total		$	54		$	1,126		$	28		$	829		$	765		$	159		$	6,829		$	9,790

Total loans
Pass		$	843,303		$	2,072,480		$	1,304,691		$	697,393		$	521,635		$	1,070,048		$	765,835		$	7,275,385
Special Mention			—			—			943			16,338			12,888			12,889			4,880			47,938
Substandard			4			—			4,304			15,452			12,102			36,063			6,216			74,141
Total		$	843,307		$	2,072,480		$	1,309,938		$	729,183		$	546,625		$	1,119,000		$	776,931		$	7,397,464


																				Revolving
(dollars in thousands)		2021			2020			2019			2018			2017			Prior			Loans			Total
December 31, 2021:
Loans secured by Real Estate:
Residential
Multifamily
Pass		$	1,092,903		$	868,483		$	418,346		$	265,872		$	141,433		$	108,529		$	—		$	2,895,566
Special Mention			—			—			1,177			—			—			—			—			1,177
Substandard			—			—			—			—			—			—			—			—
Total		$	1,092,903		$	868,483		$	419,523		$	265,872		$	141,433		$	108,529		$	—		$	2,896,743

Single Family
Pass		$	278,337		$	122,530		$	52,995		$	60,559		$	57,174		$	280,216		$	74,934		$	926,745
Special Mention			—			—			—			—			—			—			26			26
Substandard			—			—			—			—			1,873			6,830			278			8,981
Total		$	278,337		$	122,530		$	52,995		$	60,559		$	59,047		$	287,046		$	75,238		$	935,752

Commercial Real Estate
Pass		$	114,678		$	39,135		$	59,426		$	94,930		$	115,614		$	804,295		$	—		$	1,228,078
Special Mention			—			—			23,495			—			—			30,389			—			53,884
Substandard			—			—			2,934			—			2,217			22,462			—			27,613
Total		$	114,678		$	39,135		$	85,855		$	94,930		$	117,831		$	857,146		$	—		$	1,309,575

Land and construction
Pass		$	14,738		$	—		$	17,692		$	31,952		$	2,529		$	88,321		$	—		$	155,232
Special Mention			—			—			—			—			—			694			—			694
Substandard			—			—			—			—			—			—			—			—
Total		$	14,738		$	—		$	17,692		$	31,952		$	2,529		$	89,015		$	—		$	155,926

Commercial
Pass		$	471,431		$	191,405		$	88,050		$	20,709		$	5,531		$	167,201		$	636,507		$	1,580,834
Special Mention			883			1,101			833			—			—			1,370			2,790			6,977
Substandard			—			1,535			1,765			982			192			2,688			2,892			10,054
Total		$	472,314		$	194,041		$	90,648		$	21,691		$	5,723		$	171,259		$	642,189		$	1,597,865

Consumer
Pass		$	54		$	—		$	—		$	1,174		$	—		$	2,617		$	7,022		$	10,867
Special Mention			—			—			—			—			—			—			—			—
Substandard			—			—			—			—			—			—			—			—
Total		$	54		$	—		$	—		$	1,174		$	—		$	2,617		$	7,022		$	10,867

Total loans
Pass		$	1,972,141		$	1,221,553		$	636,509		$	475,196		$	322,281		$	1,451,179		$	718,463		$	6,797,322
Special Mention			883			1,101			25,505			—			—			32,453			2,816			62,758
Substandard			—			1,535			4,699			982			4,282			31,980			3,170			46,648
Total		$	1,973,024		$	1,224,189		$	666,713		$	476,178		$	326,563		$	1,515,612		$	724,449		$	6,906,728

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
March 31, 2022:
Loans secured by Real Estate:
Residential properties
Single family		$	2,488		$	—		$	—		$	2,488		$	—
Commercial real estate loans			2,918			—			—			2,918			—
Commercial loans			—			250			—			250			—
Total		$	5,406		$	250		$	—		$	5,656		$	—

December 31, 2021:
Loans secured by Real Estate:
Residential properties
Single family		$	2,568		$	—		$	—		$	2,568		$	—
Commercial loans			—			250			—			250			—
Total		$	2,568		$	250		$	—		$	2,818		$	—