Annual report pursuant to Section 13 and 15(d)

Allowance for Loan and Lease Losses (Tables)

v3.22.0.1
Allowance for Loan and Lease Losses (Tables)
12 Months Ended
Dec. 31, 2021
Receivables [Abstract]  
Allowance for Loan and Lease Losses

The following tables present information related to the allowance for loan and lease losses for the periods presented:

 

 

 

Allowance Rollforward

 

 

 

Beginning

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending

 

For the Year Ended December 31, 2021

 

Balance

 

 

Charge-offs

 

 

Recoveries

 

 

Provision

 

 

Balance

 

 

 

(Dollars in thousands)

 

Commercial and industrial loans

 

$

9,086

 

 

$

(3,538

)

 

$

169

 

 

$

4,068

 

 

$

9,785

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 single family residential

 

 

147

 

 

 

(13

)

 

 

1

 

 

 

(44

)

 

 

91

 

Construction, land and development

 

 

1,744

 

 

 

-

 

 

 

-

 

 

 

(58

)

 

 

1,686

 

Commercial real estate (including multifamily)

 

 

4,843

 

 

 

-

 

 

 

-

 

 

 

(131

)

 

 

4,712

 

Consumer loans and leases

 

 

145

 

 

 

(50

)

 

 

83

 

 

 

(106

)

 

 

72

 

Municipal and other loans

 

 

61

 

 

 

-

 

 

 

6

 

 

 

(18

)

 

 

49

 

Ending allowance balance

 

$

16,026

 

 

$

(3,601

)

 

$

259

 

 

$

3,711

 

 

$

16,395

 

 

 

 

 

Allowance Rollforward

 

 

 

Beginning

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending

 

For the Year Ended December 31, 2020

 

Balance

 

 

Charge-offs

 

 

Recoveries

 

 

Provision

 

 

Balance

 

 

 

(Dollars in thousands)

 

Commercial and industrial loans

 

$

4,078

 

 

$

(1,877

)

 

$

89

 

 

$

6,796

 

 

$

9,086

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 single family residential

 

 

31

 

 

 

(21

)

 

 

 

 

$

137

 

 

 

147

 

Construction, land and development

 

 

1,055

 

 

 

 

 

 

 

 

$

689

 

 

 

1,744

 

Commercial real estate (including multifamily)

 

 

1,451

 

 

 

 

 

 

 

 

$

3,392

 

 

 

4,843

 

Consumer loans and leases

 

 

68

 

 

 

(222

)

 

 

57

 

 

$

242

 

 

 

145

 

Municipal and other loans

 

 

54

 

 

 

 

 

 

6

 

 

$

1

 

 

 

61

 

Ending allowance balance

 

$

6,737

 

 

$

(2,120

)

 

$

152

 

 

$

11,257

 

 

$

16,026

 

 

 

 

Allowance Rollforward

 

 

 

Beginning

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending

 

For the Year Ended December 31, 2019

 

Balance

 

 

Charge-offs

 

 

Recoveries

 

 

Provision

 

 

Balance

 

 

 

(Dollars in thousands)

 

Commercial and industrial loans

 

$

4,453

 

 

$

(2,508

)

 

$

147

 

 

$

1,986

 

 

$

4,078

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 single family residential

 

 

59

 

 

 

 

 

 

65

 

 

 

(93

)

 

 

31

 

Construction, land and development

 

 

731

 

 

 

 

 

 

 

 

 

324

 

 

 

1,055

 

Commercial real estate (including multifamily)

 

 

960

 

 

 

 

 

 

 

 

 

491

 

 

 

1,451

 

Consumer loans and leases

 

 

80

 

 

 

(134

)

 

 

20

 

 

 

102

 

 

 

68

 

Municipal and other loans

 

 

3

 

 

 

 

 

 

5

 

 

 

46

 

 

 

54

 

Ending allowance balance

 

$

6,286

 

 

$

(2,642

)

 

$

237

 

 

$

2,856

 

 

$

6,737

 

Summary of Aging Analysis of Recorded Investment for Delinquent Loans by Portfolio and Segment

The following tables present an aging analysis of the recorded investment for delinquent loans by portfolio and segment:

 

 

 

Accruing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30 to 59

 

 

60 to 89

 

 

90 or More

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Days Past

 

 

Days Past

 

 

Days Past

 

 

Non-

 

 

 

 

 

December 31, 2021

 

Current

 

 

Due

 

 

Due

 

 

Due

 

 

Accrual

 

 

Total

 

 

 

(Dollars in thousands)

 

Commercial and industrial loans

 

$

459,659

 

 

$

573

 

 

$

368

 

 

$

 

 

$

4,097

 

 

$

464,697

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 single family residential

 

 

361,667

 

 

 

420

 

 

 

18

 

 

 

 

 

 

50

 

 

 

362,155

 

Construction, land and development

 

 

400,205

 

 

 

679

 

 

 

68

 

 

 

 

 

 

 

 

 

400,952

 

Commercial real estate

   (including multifamily)

 

 

1,029,941

 

 

 

6

 

 

 

3

 

 

 

 

 

 

941

 

 

 

1,030,891

 

Consumer loans and leases

 

 

6,257

 

 

 

2

 

 

 

 

 

 

 

 

 

48

 

 

 

6,307

 

Municipal and other loans

 

 

57,067

 

 

 

19

 

 

 

 

 

 

 

 

 

13

 

 

 

57,099

 

Total loans

 

$

2,314,796

 

 

$

1,699

 

 

$

457

 

 

$

 

 

$

5,149

 

 

$

2,322,101

 

 

 

 

 

Accruing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30 to 59

 

 

60 to 89

 

 

90 or More

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Days Past

 

 

Days Past

 

 

Days Past

 

 

Non-

 

 

 

 

 

December 31, 2020

 

Current

 

 

Due

 

 

Due

 

 

Due

 

 

Accrual

 

 

Total

 

 

 

(Dollars in thousands)

 

Commercial and industrial loans

 

$

567,491

 

 

$

2,295

 

 

$

271

 

 

$

 

 

$

4,929

 

 

$

574,986

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 single family residential

 

 

362,505

 

 

 

99

 

 

 

28

 

 

 

 

 

 

1,507

 

 

 

364,139

 

Construction, land and development

 

 

415,135

 

 

 

136

 

 

 

 

 

 

 

 

 

217

 

 

 

415,488

 

Commercial real estate

   (including multifamily)

 

 

953,823

 

 

 

1,084

 

 

 

 

 

 

 

 

 

1,836

 

 

 

956,743

 

Consumer loans and leases

 

 

11,618

 

 

 

8

 

 

 

4

 

 

 

 

 

 

108

 

 

 

11,738

 

Municipal and other loans

 

 

65,416

 

 

 

 

 

 

22

 

 

 

 

 

 

 

 

 

65,438

 

Total loans

 

$

2,375,988

 

 

$

3,622

 

 

$

325

 

 

$

 

 

$

8,597

 

 

$

2,388,532

 

Summary of Loans by Key Indicators of Credit Quality

The following table summarizes the Company’s loans by key indicators of credit quality:

 

 

 

 

 

 

 

Special

 

 

 

 

 

 

 

 

 

December 31, 2021

 

Pass

 

 

Mention

 

 

Substandard

 

 

Doubtful

 

 

 

(Dollars in thousands)

 

Commercial and industrial loans

 

$

451,340

 

 

$

220

 

 

$

13,131

 

 

$

6

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 single family residential

 

 

361,812

 

 

 

 

 

 

343

 

 

 

 

Construction, land and development

 

 

400,952

 

 

 

 

 

 

 

 

 

 

Commercial real estate (including multifamily)

 

 

1,008,827

 

 

 

13,508

 

 

 

8,556

 

 

 

 

Consumer loans and leases

 

 

6,257

 

 

 

 

 

 

50

 

 

 

 

Municipal and other loans

 

 

53,354

 

 

 

3,715

 

 

 

30

 

 

 

 

Total loans

 

$

2,282,542

 

 

$

17,443

 

 

$

22,110

 

 

$

6

 

 

 

 

 

 

 

 

 

Special

 

 

 

 

 

 

 

 

 

December 31, 2020

 

Pass

 

 

Mention

 

 

Substandard

 

 

Doubtful

 

 

 

(Dollars in thousands)

 

Commercial and industrial loans

 

$

554,685

 

 

$

1,332

 

 

$

18,723

 

 

$

246

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 single family residential

 

 

360,337

 

 

 

 

 

 

3,802

 

 

 

 

Construction, land and development

 

 

411,151

 

 

 

4,120

 

 

 

217

 

 

 

 

Commercial real estate (including multifamily)

 

 

935,865

 

 

 

10,913

 

 

 

9,965

 

 

 

 

Consumer loans and leases

 

 

11,626

 

 

 

 

 

 

112

 

 

 

 

Municipal and other loans

 

 

62,273

 

 

 

3,085

 

 

 

80

 

 

 

 

Total loans

 

$

2,335,937

 

 

$

19,450

 

 

$

32,899

 

 

$

246

 

Summary of Investment in Loans Disaggregated Based on Method of Evaluating Impairment

The following table shows the Company’s investment in loans disaggregated based on the method of evaluating impairment:

 

 

 

Loans - Recorded

Investment

 

 

Allowance for

Credit Loss

 

 

 

Individually

 

 

Collectively

 

 

Individually

 

 

Collectively

 

 

 

Evaluated for

 

 

Evaluated for

 

 

Evaluated for

 

 

Evaluated for

 

December 31, 2021

 

Impairment

 

 

Impairment

 

 

Impairment

 

 

Impairment

 

 

 

(Dollars in thousands)

 

Commercial and industrial loans

 

$

4,129

 

 

$

460,568

 

 

$

3,276

 

 

$

6,509

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 single family residential

 

 

173

 

 

$

361,982

 

 

 

 

 

$

91

 

Construction, land and development

 

 

 

 

$

400,952

 

 

 

 

 

$

1,686

 

Commercial real estate

   (including multifamily)

 

 

941

 

 

$

1,029,950

 

 

 

265

 

 

$

4,447

 

Consumer loans and leases

 

 

48

 

 

$

6,259

 

 

 

48

 

 

$

24

 

Municipal and other loans

 

 

13

 

 

$

57,086

 

 

 

4

 

 

$

45

 

Total loans

 

$

5,304

 

 

$

2,316,797

 

 

$

3,593

 

 

$

12,802

 

 

 

 

Loans - Recorded

Investment

 

 

Allowance for

Credit Loss

 

 

 

Individually

 

 

Collectively

 

 

Individually

 

 

Collectively

 

 

 

Evaluated for

 

 

Evaluated for

 

 

Evaluated for

 

 

Evaluated for

 

December 31, 2020

 

Impairment

 

 

Impairment

 

 

Impairment

 

 

Impairment

 

 

 

(Dollars in thousands)

 

Commercial and industrial loans

 

$

4,978

 

 

$

570,008

 

 

$

3,488

 

 

$

5,598

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 single family residential

 

 

1,637

 

 

 

362,502

 

 

 

1

 

 

 

146

 

Construction, land and development

 

 

217

 

 

 

415,271

 

 

 

 

 

 

1,744

 

Commercial real estate

   (including multifamily)

 

 

1,837

 

 

 

954,906

 

 

 

500

 

 

 

4,343

 

Consumer loans and leases

 

 

108

 

 

 

11,630

 

 

 

90

 

 

 

55

 

Municipal and other loans

 

 

52

 

 

 

65,386

 

 

 

 

 

 

61

 

Total loans

 

$

8,829

 

 

$

2,379,703

 

 

$

4,079

 

 

$

11,947

 

Summary of Information Regarding Impaired Loans Evaluated for Specific Reserves

The following tables set forth certain information regarding the Company’s impaired loans that were evaluated for specific reserves:

 

 

 

Impaired Loans -

with Allowance

 

 

Impaired Loans -

with No Allowance

 

 

 

 

 

 

 

Unpaid

 

 

 

 

 

 

 

 

 

 

Unpaid

 

 

 

Recorded

 

 

Principal

 

 

Related

 

 

Recorded

 

 

Principal

 

December 31, 2021

 

Investment

 

 

Balance

 

 

Allowance

 

 

Investment

 

 

Balance

 

 

 

(Dollars in thousands)

 

Commercial and industrial loans

 

$

3,700

 

 

$

3,673

 

 

$

3,276

 

 

$

429

 

 

$

431

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 single family residential

 

 

 

 

 

 

 

 

 

 

 

173

 

 

 

173

 

Construction, land and

   development

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

   (including multifamily)

 

 

441

 

 

 

441

 

 

 

265

 

 

 

500

 

 

 

500

 

Consumer loans and leases

 

 

48

 

 

 

48

 

 

 

48

 

 

 

 

 

 

 

Municipal and other loans

 

 

13

 

 

 

12

 

 

 

4

 

 

 

 

 

 

 

Total loans

 

$

4,202

 

 

$

4,174

 

 

$

3,593

 

 

$

1,102

 

 

$

1,104

 

 

 

 

Impaired Loans -

with Allowance

 

 

Impaired Loans -

with No Allowance

 

 

 

 

 

 

 

Unpaid

 

 

 

 

 

 

 

 

 

 

Unpaid

 

 

 

Recorded

 

 

Principal

 

 

Related

 

 

Recorded

 

 

Principal

 

December 31, 2020

 

Investment

 

 

Balance

 

 

Allowance

 

 

Investment

 

 

Balance

 

 

 

(Dollars in thousands)

 

Commercial and industrial loans

 

$

4,407

 

 

$

4,453

 

 

$

3,488

 

 

$

566

 

 

$

571

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 single family residential

 

 

5

 

 

 

5

 

 

 

1

 

 

 

1,632

 

 

 

1,612

 

Construction, land and

   development

 

 

 

 

 

 

 

 

 

 

 

217

 

 

 

215

 

Commercial real estate

   (including multifamily)

 

 

1,308

 

 

 

1,281

 

 

 

500

 

 

 

528

 

 

 

528

 

Consumer loans and leases

 

 

90

 

 

 

90

 

 

 

90

 

 

 

24

 

 

 

28

 

Municipal and other loans

 

 

 

 

 

 

 

 

 

 

 

52

 

 

 

52

 

Total loans

 

$

5,810

 

 

$

5,829

 

 

$

4,079

 

 

$

3,019

 

 

$

3,006

 

 

 

 

For the Years Ended

December 31,

 

 

 

2021

 

 

2020

 

 

2019

 

 

 

Average

 

 

Interest

 

 

Average

 

 

Interest

 

 

Average

 

 

Interest

 

 

 

Recorded

 

 

Income

 

 

Recorded

 

 

Income

 

 

Recorded

 

 

Income

 

 

 

Investment

 

 

Recognized

 

 

Investment

 

 

Recognized

 

 

Investment

 

 

Recognized

 

 

 

(Dollars in thousands)

 

Commercial and industrial loans

 

$

5,045

 

 

$

 

 

$

4,864

 

 

$

 

 

$

2,790

 

 

$

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 single family residential

 

 

182

 

 

 

 

 

 

1,658

 

 

 

 

 

 

2,011

 

 

 

 

Construction, land and development

 

 

 

 

 

 

 

 

216

 

 

 

 

 

 

219

 

 

 

 

Commercial real estate

   (including multifamily)

 

 

1,022