Heritage Commerce (HTBK) 10-K5 Mar 212020 FY Annual reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Dec. 31, 2020	Feb. 10, 2021	Jun. 30, 2020
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2020
Document Transition Report	false
Entity File Number	000-23877
Entity Registrant Name	HERITAGE COMMERCE CORP
Entity Incorporation, State or Country Code	CA
Entity Tax Identification Number	77-0469558
Entity Address, Address Line One	224 Airport Parkway
Entity Address, City or Town	San Jose
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	95110
City Area Code	408
Local Phone Number	947-6900
Title of 12(b) Security	Common Stock, No Par Value
Trading Symbol	HTBK
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 354.3
Entity Common Stock, Shares Outstanding		59,919,957
Document Fiscal Year Focus	2020
Entity Central Index Key	0001053352
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Assets
Cash and due from banks	$ 30,598,000	$ 49,447,000
Other investments and interest-bearing deposits in other financial institutions	1,100,475,000	407,923,000
Total cash and cash equivalents	1,131,073,000	457,370,000
Securities available-for-sale, at fair value	235,774,000	404,825,000
Securities held-to-maturity, at amortized cost, net of allowance for credit losses of $54 at December 31, 2020 (fair value of $304,927at December 31, 2020 and $368,107 at December 31, 2019)	297,389,000	366,560,000
Loans held-for-sale - SBA, at lower of cost or fair value, including deferred costs	1,699,000	1,052,000
Loans, net of deferred fees	2,619,261,000	2,533,844,000
Allowance for credit losses on loans(1)	(44,400,000)	(23,285,000)
Loans, net	2,574,861,000	2,510,559,000
Federal Home Loan Bank, Federal Reserve Bank stock and other investments, at cost	33,522,000	29,842,000
Company-owned life insurance	77,523,000	76,027,000
Premises and equipment, net	10,459,000	8,250,000
Goodwill	167,631,000	167,420,000
Other intangible assets	16,664,000	20,415,000
Accrued interest receivable and other assets	87,519,000	67,143,000
Total assets	4,634,114,000	4,109,463,000
Deposits:
Demand, noninterest-bearing	1,661,655,000	1,450,873,000
Demand, interest-bearing	960,179,000	798,375,000
Savings and money market	1,119,968,000	982,430,000
Time deposits - under $250	45,027,000	54,361,000
Time deposits - $250 and over	103,746,000	99,882,000
CDARS - interest-bearing demand, money market and time deposits	23,911,000	28,847,000
Total deposits	3,914,486,000	3,414,768,000
Subordinated debt, net of issuance costs	39,740,000	39,554,000
Other short-term borrowings		328,000
Accrued interest payable and other liabilities	101,999,000	78,105,000
Total liabilities	4,056,225,000	3,532,755,000
Shareholders' equity:
Preferred stock, no par value; 10,000,000 shares authorized; none issued and outstanding at December 31, 2020 and December 31, 2019
Common stock, no par value; 100,000,000 shares authorized ;59,917,457 shares issued and outstanding at December 31, 2020 and 59,368,156 shares issued and outstanding at December 31, 2019	493,707,000	489,745,000
Retained earnings	94,899,000	96,741,000
Accumulated other comprehensive loss	(10,717,000)	(9,778,000)
Total shareholders' equity	577,889,000	576,708,000
Total liabilities and shareholders' equity	$ 4,634,114,000	$ 4,109,463,000

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Securities held-to-maturity
Allowance for credit losses	$ (54)
Securities held-to-maturity, fair value (in dollars)	$ 304,927	$ 368,107
Preferred stock
Preferred stock, par value (in dollars per share)	$ 0	$ 0
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, outstanding (in shares)	0	0
Common stock
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	59,917,457	59,368,156
Common stock, shares outstanding	59,917,457	59,368,156

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	12 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Interest income:
Loans, including fees	$ 133,169	$ 116,808	$ 105,635
Securities, taxable	11,637	15,836	15,211
Securities, exempt from Federal tax	1,908	2,148	2,225
Other investments, interest-bearing deposits in other financial institutions and Federal funds sold	3,757	7,867	6,774
Total interest income	150,471	142,659	129,845
Interest expense:
Deposits	6,260	8,159	5,506
Subordinated debt	2,320	2,686	2,314
Short-term borrowings	1	2	2
Total interest expense	8,581	10,847	7,822
Net interest income before provision for credit losses on loans	141,890	131,812	122,023
Provision for credit losses on loans	13,233	846	7,421
Net interest income after provision for credit losses on loans	128,657	130,966	114,602
Noninterest income:
Increase in cash surrender value of life insurance	1,845	1,404	1,045
Gain on sales of SBA loans	839	689	698
Servicing income	673	636	709
Gain on sales of securities	277	661	266
Other	2,638	2,344	2,743
Total noninterest income	9,922	10,244	9,574
Noninterest expense:
Salaries and employee benefits	50,927	50,754	43,762
Occupancy and equipment	8,018	6,647	5,411
Professional fees	5,338	3,259	1,969
Other	25,228	24,238	24,379
Total noninterest expense	89,511	84,898	75,521
Income before income taxes	49,068	56,312	48,655
Income tax expense	13,769	15,851	13,324
Net income	$ 35,299	$ 40,461	$ 35,331
Earnings per common share:
Basic (in dollars per share)	$ 0.59	$ 0.87	$ 0.85
Diluted (in dollars per share)	$ 0.59	$ 0.84	$ 0.84
Service charges and fees on deposit accounts
Noninterest income:
Non-interest income	$ 2,859	$ 4,510	$ 4,113
Revenue, Product and Service [Extensible List]	Service charges and fees on deposit accounts	Service charges and fees on deposit accounts	Service charges and fees on deposit accounts
Gain on the disposition of foreclosed assets
Noninterest income:
Non-interest income	$ 791
Revenue, Product and Service [Extensible List]	Gain on the disposition of foreclosed assets	Gain on the disposition of foreclosed assets	Gain on the disposition of foreclosed assets

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 35,299	$ 40,461	$ 35,331
Other comprehensive income (loss):
Change in net unrealized holding (losses) gains on available-for-sale securities and I/O strips	3,553	10,620	(6,383)
Deferred income taxes	(1,031)	(3,545)	1,925
Change in net unamortized unrealized gain on securities available-for-sale that were reclassified to securities held-to-maturity	(52)	(65)	(44)
Deferred income taxes	15	19	13
Reclassification adjustment for gains realized in income	(277)	(661)	(266)
Deferred income taxes	82	195	79
Change in unrealized (losses) gains on securities and I/O strips, net of deferred income taxes	2,290	6,563	(4,676)
Change in net pension and other benefit plan liability adjustment	(4,036)	(5,622)	2,196
Deferred income taxes	807	1,662	(649)
Change in pension and other benefit plan liability, net of deferred income taxes	(3,229)	(3,960)	1,547
Other comprehensive (loss) income	(939)	2,603	(3,129)
Total comprehensive income	$ 34,360	$ 43,064	$ 32,202

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($)	Common StockTri Valley Bank	Common StockUnited American Bank	Common StockPresidio bank	Common Stock	Retained EarningsAdjustment	Retained Earnings	Accumulated Other Comprehensive Income / (Loss)	Tri Valley Bank	United American Bank	Presidio bank	Adjustment	Total
Balance at Dec. 31, 2017				$ 218,355,000		$ 62,136,000	$ (9,252,000)					$ 271,239,000
Balance (in shares) at Dec. 31, 2017				38,200,883
Increase (Decrease) in Shareholders' Equity
Net income						35,331,000						35,331,000
Other comprehensive income (loss)							(3,129,000)					(3,129,000)
Issuance of common shares to acquire Business	$ 30,725,000	$ 47,280,000						$ 30,725,000	$ 47,280,000
Issuance of common shares to acquire Business (in shares)	1,889,613	2,826,032
Issuance of restricted stock awards, net (in shares)				95,378
Amortization of restricted stock awards, net of forfeitures and taxes				$ 1,109,000								1,109,000
Cash dividend declared						(18,464,000)						(18,464,000)
Stock option expense, net of forfeitures				708,000								708,000
Stock options exercised				$ 2,667,000								2,667,000
Stock options exercised (in shares)				276,844
Balance at Dec. 31, 2018				$ 300,844,000		79,003,000	(12,381,000)					367,466,000
Balance (in shares) at Dec. 31, 2018				43,288,750
Increase (Decrease) in Shareholders' Equity
Net income						40,461,000						40,461,000
Other comprehensive income (loss)							2,603,000					2,603,000
Issuance of common shares to acquire Business			$ 177,926,000							$ 177,926,000
Issuance of common shares to acquire Business (in shares)			15,684,064
Consideration for Presidio stock options exchanged for Heritage Commerce Corp stock options				$ 7,426,000								7,426,000
Issuance of restricted stock awards, net (in shares)				128,653
Amortization of restricted stock awards, net of forfeitures and taxes				$ 1,283,000								1,283,000
Cash dividend declared						(22,723,000)						(22,723,000)
Stock option expense, net of forfeitures				640,000								640,000
Stock options exercised				$ 1,626,000								1,626,000
Stock options exercised (in shares)				266,689
Balance at Dec. 31, 2019				$ 489,745,000	$ (6,062,000)	96,741,000	(9,778,000)				$ (6,062,000)	576,708,000
Balance (in shares) at Dec. 31, 2019				59,368,156
Increase (Decrease) in Shareholders' Equity
Net income						35,299,000						35,299,000
Other comprehensive income (loss)							(939,000)					(939,000)
Consideration for Presidio stock options exchanged for Heritage Commerce Corp stock options										$ 7,426,000
Issuance of restricted stock awards, net (in shares)				168,117
Amortization of restricted stock awards, net of forfeitures and taxes				$ 1,689,000								1,689,000
Cash dividend declared						(31,079,000)						(31,079,000)
Stock option expense, net of forfeitures and taxes				559,000								559,000
Stock options exercised				$ 1,714,000								1,714,000
Stock options exercised (in shares)				381,184
Balance at Dec. 31, 2020				$ 493,707,000		$ 94,899,000	$ (10,717,000)					$ 577,889,000
Balance (in shares) at Dec. 31, 2020				59,917,457

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) $ in Thousands	12 Months Ended
	Dec. 31, 2019USD ($)$ / shares
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
Cash dividend declared per share (in dollars per share) \| $ / shares	$ 0.48
Presidio bank
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
Issuance of common shares to acquire Presidio Bank, offering costs \| $	$ 246

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 35,299,000	$ 40,461,000	$ 35,331,000
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of discounts and premiums on securities	3,747,000	2,590,000	3,788,000
Gain on sale of securities available-for-sale	(277,000)	(661,000)	(266,000)
Gain on sale of SBA loans	(839,000)	(689,000)	(698,000)
Proceeds from sale of SBA loans originated for sale	11,154,000	10,096,000	11,765,000
SBA loans originated for sale	(10,962,000)	(8,504,000)	(15,214,000)
Provision for credit losses on loans	13,233,000	846,000	7,421,000
Increase in cash surrender value of life insurance	(1,845,000)	(1,404,000)	(1,045,000)
Depreciation and amortization	951,000	846,000	753,000
Amortization of other intangible assets	3,751,000	2,739,000	1,943,000
Stock option expense, net	559,000	640,000	708,000
Amortization of restricted stock awards, net	1,689,000	1,283,000	1,109,000
Amortization of subordinated debt issuance costs	186,000	185,000	186,000
Gain on proceeds from company owned life insurance	(20,000)
Effect of changes in:
Accrued interest receivable and other assets	8,101,000	8,407,000	1,572,000
Accrued interest payable and other liabilities	(6,641,000)	(6,492,000)	1,219,000
Net cash provided by operating activities	58,086,000	50,343,000	48,572,000
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of securities available-for-sale		(111,954,000)	(162,806,000)
Purchase of securities held-to-maturity	(30,916,000)	(50,041,000)	(31,496,000)
Maturities/paydowns/calls of securities available-for-sale	114,662,000	53,566,000	57,142,000
Maturities/paydowns/calls of securities held-to-maturity	97,365,000	59,361,000	50,773,000
Proceeds from sales of securities available-for-sale	56,598,000	167,551,000	94,291,000
Net change in loans	(85,646,000)	33,810,000	38,394,000
Changes in Federal Home Loan Bank stock and other investments	(3,680,000)	1,161,000	(4,483,000)
Purchase of premises and equipment	(3,160,000)	(203,000)	(187,000)
Cash received in bank acquisition, net of cash paid		117,988,000	36,028,000
Proceeds from redemption of company-owned life insurance	369,000
Net cash provided by investing activities	145,592,000	271,239,000	77,656,000
CASH FLOWS FROM FINANCING ACTIVITIES:
Net change in deposits	499,718,000	2,977,000	(262,085,000)
Redemption of subordinated debt		(10,000,000)
Payment for early debt extinguishment penalty		(300,000)
Net change in short-term borrowings	(328,000)	(114,000)
Exercise of stock options	1,714,000	1,626,000	2,667,000
Common stock offering costs		(246,000)
Payment of cash dividends	(31,079,000)	(22,723,000)	(18,464,000)
Net cash provided by (used in) financing activities	470,025,000	(28,780,000)	(277,882,000)
Net increase in cash and cash equivalents	673,703,000	292,802,000	(151,654,000)
Cash and cash equivalents, beginning of period	457,370,000	164,568,000	316,222,000
Cash and cash equivalents, end of period	1,131,073,000	457,370,000	164,568,000
Supplemental disclosures of cash flow information:
Interest paid	8,558,000	9,935,000	7,528,000
Income taxes paid, net	10,640,000	17,730,000	12,838,000
Supplemental schedule of non-cash activity:
Recording of right to use assets in exchange for lease obligations	$ 26,654,000	9,566,000
Transfer of loans held-for-sale to loan portfolio		$ 694,000	$ 4,917,000

CONSOLIDATED STATEMENTS OF CA_2

CONSOLIDATED STATEMENTS OF CASH FLOWS - Summary of Assets Acquired and Liabilities Assumed Through Acquisition (Parenthetical) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Summary of assets acquired and liabilities assumed through acquisitions:
Cash and cash equivalents, net of cash paid	$ 117,988,000	$ 36,028,000
Securities available-for-sale	45,069,000	63,723,000
Securities held-to-maturity	463,000
Net loans	685,964,000	336,446,000
Premises and equipment	1,756,000	350,000
Goodwill	83,878,000	38,039,000
Other intangible assets	11,147,000	8,361,000
Company owned life insurance	12,764,000
Other assets, net	29,397,000	14,736,000
Deposits	(774,259,000)	(416,628,000)
Subordinated debt	(10,000,000)
Other borrowings	(442,000)	(62,000)
Other liabilities	(18,127,000)	(3,038,000)
Presidio bank
Summary of assets acquired and liabilities assumed through acquisitions:
Common stock issued in acquisitions	$ 185,598,000
Tri Valley Bank and United American Bank
Summary of assets acquired and liabilities assumed through acquisitions:
Common stock issued in acquisitions		$ 78,005,000

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
Summary of Significant Accounting Policies	Dec. 31, 2020
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	HERITAGE COMMERCE CORP NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1) Summary of Significant Accounting Policies Description of Business and Basis of Presentation Heritage Commerce Corp (“HCC”) operates as a registered bank holding company for its wholly-owned subsidiary Heritage Bank of Commerce (“HBC” or the “Bank”), collectively referred to as the “Company”. HBC was incorporated on November 23, 1993 and commenced operations on June 8, 1994. HBC is a California state chartered bank which offers a full range of commercial and personal banking services to residents and the business/professional community in Alameda, Contra Costa, Marin, San Benito, San Francisco, San Mateo, and Santa Clara counties of California. CSNK Working Capital Finance Corp. a California corporation, dba Bay View Funding (“Bay View Funding”) is a wholly owned subsidiary of HBC. Bay View Funding’s primary business operation is purchasing and collecting factored receivables. Factored receivables are receivables that have been transferred by the originating organization and typically have not been subject to previous collection efforts. In a factoring transaction Bay View Funding directly purchases the receivables generated by its clients at a discount to their face value. The transactions are structured to provide the clients with immediate working capital when there is a mismatch between payments to the client for a good and service and the payment of operating costs incurred to provide such good or service. The Company acquired Tri-Valley Bank (“Tri-Valley”) on April 6, 2018. Tri-Valley was merged with HBC, with HBC as the surviving bank. Tri-Valley’s results of operations have been included in the Company’s results of operations beginning April 7, 2018. The Company acquired United American Bank (“United American”) on May 4, 2018. United American was merged with HBC, with HBC as the surviving bank. United American’s results of operations have been included in the Company’s results of operations beginning May 5, 2018. The Company acquired Presidio Bank (“Presidio”) on October 11, 2019. Presidio was merged with HBC, with HBC as the surviving bank. Presidio’s results of operations have been included in the Company’s results of operations beginning October 12, 2019. The consolidated financial statements are prepared in accordance with accounting policies generally accepted in the United States of America and general practices in the banking industry. The financial statements include the accounts of the Company. All inter-company accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents Cash and cash equivalents include cash on hand, amounts due from banks, amounts held at the Federal Reserve Bank, and Federal funds sold. The Company is required to maintain reserves against certain of the deposit accounts with the Federal Reserve Bank. Federal funds are generally sold and purchased for one Cash Flows Net cash flows are reported for customer loan and deposit transactions, notes payable, repurchase agreements and other short-term borrowings. Securities The Company classifies its securities as either available-for-sale or held-to-maturity at the time of purchase. Debt securities are classified as held-to-maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Debt securities not classified as held-to-maturity are classified as available-for-sale. Securities available-for-sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of taxes. Interest income includes amortization of purchase premiums or discounts. Premiums and discounts are amortized, or accreted, over the life of the related security, or the earliest call date for callable securities, as an adjustment to income using a method that approximates the interest method. Realized gains and losses are recorded on the trade date and determined using the specific identification method for the cost of securities sold. Allowance for Credit Losses – Available-for-sale Securities Allowance for Credit Losses – Held-to-Maturity Securities Management measures expected credit losses on held-to-maturity debt securities on a collective basis by major security type and bond rating. The estimate of expected credit losses considers historical loss information that is adjusted for current conditions and reasonable and supportable forecasts. Management classifies the held-to-maturity portfolio in the following major security types: Agency mortgage-backed and Municipals. All the mortgage backed securities held by the Company are issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies, and have a long history of no credit losses. Other securities are comprised primarily of tax exempt municipal securities. At December 31, 2020, these securities are primarily rated A-Aaa (defined as investment grade), with a small portion of the portfolio rated Baa2 (defined as medium grade). The issuers in these securities are primarily municipal entities and school districts. Changes in the allowance for credit losses are recorded as a provision (or reversal of) credit loss expense. Losses are charged against the allowance when management believes the uncollectibility of an available-for-sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Loan Sales and Servicing The Company holds for sale the conditionally guaranteed portion of certain loans guaranteed by the Small Business Administration or the U.S. Department of Agriculture (collectively referred to as “SBA loans”). These loans are carried at the lower of aggregate cost or fair value. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings. Gains or losses on SBA loans held-for-sale are recognized upon completion of the sale, based on the difference between the selling price and the carrying value of the related loan sold. SBA loans are sold with servicing retained. Servicing assets recognized separately upon the sale of SBA loans consist of servicing rights and, for loans sold prior to 2009, interest-only strip receivables (“I/O strips”). The Company accounts for the sale and servicing of SBA loans based on the financial and servicing assets it controls and liabilities it has incurred, reversing recognition of financial assets when control has been surrendered, and reversing recognition of liabilities when extinguished. Servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sale of loans. Servicing rights are amortized in proportion to and over the period of net servicing income and are assessed for impairment on an ongoing basis. Impairment is determined by stratifying the servicing rights based on interest rates and terms. Any servicing assets in excess of the contractually specified servicing fees are reclassified at fair value as an I/O strip receivable and treated like an available for sale security. Fair value is determined using prices for similar assets with similar characteristics, when available, or based upon discounted cash flows using market-based assumptions. Impairment is recognized through a valuation allowance. The servicing rights, net of any required valuation allowance, and I/O strip receivable are included in other assets on the consolidated balance sheets. Servicing income, net of amortization of servicing rights, is recognized as noninterest income. The initial fair value of I/O strip receivables is amortized against interest income on loans. Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at the principal amount outstanding, net of deferred loan origination fees and costs on originated loans, or unamortized premiums or discounts on purchased or acquired loans, and an allowance for credit losses on loans. Accrued interest receivable is excluded from the estimate of credit losses. Interest on loans is accrued on the unpaid principal balance and is credited to income using the effective yield interest method. Interest on purchased or acquired loans and the accretion (amortization) of the related purchase discount (premium) is also credited to income using the effective yield interest method. A loan portfolio segment is defined as the level at which the Company uses a systematic methodology to determine the allowance for credit losses on loans. A loan portfolio class is defined as a group of loans having similar risk characteristics and methods for monitoring and assessing risk. For all loan classes, when a loan is classified as nonaccrual, the accrual of interest is discontinued, any accrued and unpaid interest is reversed, and the amortization of deferred loan fees and costs is discontinued. For all loan classes, loans are classified as nonaccrual when the payment of principal or interest is 90 days past due, unless the loan is well secured and in the process of collection. Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for credit loss and individually evaluated loans. In certain circumstances, loans that are under 90 days past due may also be classified as nonaccrual. Any interest or principal payments received on nonaccrual loans are applied toward reduction of principal. Nonaccrual loans generally are not returned to performing status until the obligation is brought current, the loan has performed in accordance with the contract terms for a reasonable period of time, and the ultimate collectability of the contractual principal and interest is no longer in doubt. Non-refundable loan fees and direct origination costs are deferred and recognized over the expected lives of the related loans using the effective yield interest method. Allowance for Credit Losses on Loans The allowance for credit losses on loans is an estimate of the current expected credit losses in the loan portfolio. Loans are charged-off against the allowance when management determines that a loan balance has become uncollectible. Subsequent recoveries, if any, are credited to the allowance for credit losses on loans. Management’s methodology for estimating the allowance balance consists of several key elements, which include pooling loans with similar characteristics into segments and using a discounted cash flow calculation to estimate losses. The discounted cash flow model inputs include loan level cash flow estimates for each loan segment based on peer and bank historic loss correlations with certain economic factors. Management uses a four quarter forecast of each economic factor that is used for each loan segment and the economic factors are assumed to revert to the historic mean over an eight quarter period after the four quarter forecast period. The economic factors management has selected include the California unemployment rate, California gross state product, California home price index, and a national CRE value index. These factors are evaluated and updated occasionally and as economic conditions change. Additionally, management uses qualitative adjustments to the discounted cash flow quantitative loss estimates in certain cases when management has assessed an adjustment is necessary. These qualitative adjustments are applied by pooled loan segment and have been made for increased risk due to loan quality trends, collateral risk, or other risks management determines are not adequately captured in the discounted cash flow loss estimation. Specific allowances on individually analyzed loans are added to the allowance on pools of collectively evaluated loans to derive the total allowance for credit losses on loans. Loans that do not share risk characteristics with pooled segments are evaluated on an individual basis. Loans for which the terms have been modified with a concession granted, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings. When foreclosure is probable or when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of collateral expected credit losses are based on the fair value of the collateral adjusted for selling costs as appropriate. When the discounted cash flow method is utilized the amount of credit loss is measured using the net present value of expected future cash flows adjusted for the effective interest rate used to discount expected cash flows to incorporate expected prepayments. The amount of any impairment will be charged off against the allowance for credit losses on loans if the amount is a confirmed loss or, alternatively, a specific allocation within the allowance will be established. Loans evaluated individually are specifically excluded from the collective evaluation in the allowance for credit losses. The allowance for credit losses on loans was calculated by pooling loans of similar credit risk characteristics and credit monitoring procedures. The loan portfolio is classified into eight segments of loans - commercial, commercial real estate – owner occupied, commercial real estate – non-owner occupied, land and construction, home equity, multifamily, residential mortgage and consumer and other. The risk characteristics of each loan portfolio segment are as follows: Commercial Commercial loans primarily rely on the identified cash flows of the borrower for repayment and secondarily on the underlying collateral provided by the borrower. However, the cash flows of the borrowers may not be as expected and the collateral securing these loans may vary in value. Most commercial loans are secured by the assets being financed or other business assets such as accounts receivable, inventory or equipment and may incorporate a personal guarantee; however, some loans may be unsecured. Included in commercial loans are $290,679,000 of PPP loans at December 31, 2020. Commercial Real Estate Commercial real estate loans rely primarily on the cash flows of the properties securing the loan and secondarily on the value of the property that is securing the loan. Commercial real estate loans comprise two segments differentiated by owner occupied commercial real estate and non-owner commercial real estate. Owner occupied commercial real estate loans are secured by commercial properties that are at least 50% occupied by the borrower or borrower affiliate. Non-owner occupied commercial real estate loans are secured by commercial properties that are less than 50% occupied by the borrower or borrower affiliate. Commercial real estate loans may be adversely affected by conditions in the real estate markets or in the general economy. Land and Construction Land and construction loans are generally based on estimates of costs and value associated with the complete project. Construction loans usually involve the disbursement of funds with repayment substantially dependent on the success of the completion of the project. Sources of repayment for these loans may be permanent loans from HBC or other lenders, or proceeds from the sales of the completed project. These loans are monitored by on-site inspections and are considered to have higher risk than other real estate loans due to the final repayment dependent on numerous factors including general economic conditions. Home Equity Home equity loans are secured by 1-4 family residences that are generally owner occupied. Repayment of these loans depends primarily on the personal income of the borrower and secondarily by the value of the property securing the loan which can be impacted by changes in economic conditions such as the unemployment rate and property values. Multifamily Multifamily loans are loans on 5+ residential properties. These loans rely primarily on the cash flows of the properties securing the loan for repayment and secondarily on the value of the properties securing the loan. The cash flows of these borrowers can fluctuate along with the values of the underlying property depending on general economic conditions. Residential Mortgages Residential mortgage loans are secured by 1-4 family residences which are generally owner-occupied. Repayment of these loans depends primarily on the personal income of the borrower and secondarily by the value of the property securing the loan which can be impacted by changes in economic conditions such as the unemployment rate and property values. Consumer and Other Consumer and other loans are secured by personal property or are unsecured and rely primarily on the income of the borrower for repayment and secondarily on the collateral value for secured loans. Borrower income and collateral value can vary dependent on economic conditions. Loan Commitments and Related Financial Instruments Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. The notional amount of these commitments is not reflected in the consolidated financial statement until they are funded. The Company maintains an allowance for credit losses on unfunded commercial lending commitments and letters of credit to provide for the risk of loss inherent in these arrangements. The allowance is computed using a methodology similar to that used to determine the allowance for credit losses for loans, modified to take into account the probability of a drawdown on the commitment. The allowance for credit losses on unfunded loan commitments is classified as a liability account on the balance sheet and is adjusted as a provision for credit loss expense included in other noninterest expense. Federal Home Loan Bank and Federal Reserve Bank Stock As a member of the Federal Home Loan Bank (“FHLB”) system, the Bank is required to own common stock in the FHLB based on the Bank’s level of borrowings and outstanding FHLB advances. FHLB stock is carried at cost and classified as a restricted security. Both cash and stock dividends from the FHLB are reported as income. As a member of the Federal Reserve Bank (“FRB”) of San Francisco, the Bank is required to own stock in the FRB of San Francisco based on a specified ratio relative to our capital. FRB stock is carried at cost and may be sold back to the FRB at its carrying value. Cash dividends received from the FRB are reported as income. Company-Owned Life Insurance and Split-Dollar Life Insurance Benefit Plan The Company has purchased life insurance policies on certain directors and officers. Company-owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for charges or other amounts due that are probable at settlement. The purchased insurance is subject to split-dollar insurance agreements with the insured participants, which continues after the participant’s employment and retirement. Accounting guidance requires that a liability be recorded primarily over the participant’s service period when a split-dollar life insurance agreement continues after a participant’s employment or retirement. The required accrued liability is based on either the post-employment benefit cost for the continuing life insurance or the future death benefit depending on the contractual terms of the underlying agreement. Premises and Equipment Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation and amortization are computed on the straight-line basis over the lesser of the respective lease terms or estimated useful lives. The Company owns one building which is being depreciated over 40 years. Furniture, equipment and improvements depreciated five Business Combinations The Company accounts for acquisitions of businesses using the acquisition method of accounting. Under the acquisition method, assets acquired and liabilities assumed are recorded at their estimated fair values at the date of acquisition. Management utilizes various valuation techniques including discounted cash flow analyses to determine these fair values. Any excess of the purchase price over amounts allocated to the acquired assets, including identifiable intangible assets, and liabilities assumed is recorded as goodwill. Goodwill and Other Intangible Assets Goodwill resulting from business combinations represents the excess of the purchase price over the fair value of the net assets of businesses acquired. Goodwill is assessed at least annually for impairment and any such impairment is recognized in the period identified. Other intangible assets consist of a core deposit intangible, a below market lease, an above market lease liability, a customer relationship and brokered relationship intangible assets. They are initially measured at fair value and then are amortized over their estimated useful lives. The core deposits intangible assets from the acquisitions are being amortized on an accelerated method over ten years. The below market value lease intangible assets are being amortized on the straight line method over three years. The above market lease adjustment is being amortized on the straight line method over 60 months. The customer relationship and brokered relationship intangible assets are being amortized over ten years. Foreclosed Assets Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. If fair value declines subsequent to foreclosure, a valuation allowance is recorded through operations. Operating costs after acquisition are expensed. Gains and losses on disposition are included in noninterest expense. There were no foreclosed assets at December 31, 2020 and 2019. Retirement Plans Expenses for the Company’s non-qualified, unfunded defined benefits plan consists of service and interest cost and amortization of gains and losses not immediately recognized. Employee 401(k) and profit sharing plan expense is the amount of matching contributions. Deferred compensation and supplemental retirement plan expense allocates the benefits over years of service. Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. The Company’s accounting policy for legal costs related to loss contingencies is to accrue for the probable fees that can be reasonably estimated. The Company’s accounting policy for uncertain recoveries is to recognize the anticipated recovery when realization is deemed probable. Income Taxes The Company files consolidated Federal and combined and separate state income tax returns. Income tax expense is the total of the current year income tax payable or refunded, the change in deferred tax assets and liabilities, and low income housing investment losses, net of tax benefits received. Some items of income and expense are recognized in different years for tax purposes when applying generally accepted accounting principles, leading to timing differences between the Company’s actual tax liability and the amount accrued for this liability based on book income. These temporary differences comprise the “deferred” portion of the Company’s tax expense or benefit, which is accumulated on the Company’s books as a deferred tax asset or deferred tax liability until such time as they reverse. Realization of the Company’s deferred tax assets is primarily dependent upon the Company generating sufficient taxable income to obtain benefit from the reversal of net deductible temporary differences and utilization of tax credit carryforwards for Federal and California state income tax purposes. The amount of deferred tax assets considered realizable is subject to adjustment in future periods based on estimates of future taxable income. Under generally accepted accounting principles, a valuation allowance is required to be recognized if it is “more likely than not” that a deferred tax asset will not be realized. The determination of the realizability of the deferred tax assets is highly subjective and dependent upon judgment concerning management’s evaluation of both positive and negative evidence, including forecasts of future income, cumulative losses, applicable tax planning strategies, and assessments of current and future economic and business conditions. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and penalties related to uncertain tax positions as income tax expense. Stock-Based Compensation Compensation cost is recognized for stock options and restricted stock awards issued to employees and directors, based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. Compensation cost recognized reflects estimated forfeitures, adjusted as necessary for actual forfeitures. Comprehensive Income (Loss) Total comprehensive income (loss) consists of net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to gains and losses that are included in comprehensive income (loss) but are excluded from net income (loss) because they have been recorded directly in equity, net of tax, under the provisions of certain accounting guidance. The Company’s sources of other comprehensive income (loss) are unrealized gains and losses on securities available-for-sale, and I/O strips, which are treated like available-for-sale securities, and the liabilities related to the Company’s defined benefit pension plan and the split-dollar life insurance benefit plan. Reclassification adjustments result from gains or losses that were realized and included in net income (loss) of the current period that also had been included in other comprehensive income as unrealized holding gains and losses. Segment Reporting HBC is a commercial bank serving customers located in Alameda, Contra Costa, Marin, San Benito, San Francisco, San Mateo, and Santa Clara counties of California. Bay View Funding provides business essential working capital factoring financing to various industries throughout the United States. No customer accounts for more than 10 percent of revenue for HBC or the Company. With the previous acquisition of Bay View Funding, the Company has two reportable segments consisting of Banking and Factoring. Reclassifications Certain items in the consolidated financial statements for the years ended December 31, 2019 and 2018 were reclassified to conform to the 2020 presentation. These reclassifications did not affect previously reported net income or shareholders’ equity. London Inter-Bank Offered Rate (“LIBOR”) Transition and Phase-Out We have loans and borrowings that are tied to LIBOR benchmark interest rates. It is anticipated that the LIBOR index will be phased-out by the end of 2021 and the Federal Reserve Bank of New York has established the Secured Overnight Financing Rate (“SOFR”) as its recommended alternative to LIBOR. We have created a sub-committee of our Asset Liability Management Committee to address LIBOR transition and phase-out issues. We are currently reviewing loan documentation, technology systems and procedures we will need to implement for the transition. COVID-19 Capital and Liquidity While the Company believes that it has sufficient capital to withstand an extended economic recession brought about by COVID-19, its reported and regulatory capital ratios could be adversely impacted by credit losses. The Company relies on cash on hand as well as dividends from its subsidiary bank to service its debt. If the Company’s capital deteriorates such that its subsidiary bank is unable to pay dividends to it for an extended period of time, the Company may not be able to service its debt. The Company maintains access to multiple sources of liquidity. Wholesale funding markets have remained open to us, but rates for short term funding have recently been volatile. If funding costs are elevated for an extended period of time, it could have an adverse effect on the Company’s net interest margin. If an extended recession caused large numbers of the Company’s deposit customers to withdraw their funds, the Company might become more reliant on volatile or more expensive sources of funding. Asset Valuation The extent to which the COVID-19 pandemic will impact our business, results of operations and financial condition will depend on future developments, which are highly uncertain and difficult to predict. Those developments and factors include the duration and spread of the pandemic, its severity, the actions to contain the pandemic or address its impact, and how quickly and to what extent normal economic and operating conditions can resume. We do not yet know the full extent of the impact. However, the effects could have a material adverse impact on our business, asset valuations, financial condition and results of operations. Material adverse impacts may include all or a combination of valuation impairments on our intangible assets, investments, loans, or deferred tax assets. Adoption of New Accounting Standards In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments in this update replace the incurred loss impairment methodology in prior GAAP with a methodology that reflects expected life-of-instrument credit losses and requires consideration of a broader range of reasonable and supportable information to estimate future credit loss estimates. As CECL encompasses all financial assets carried at amortized cost, the requirement that reserves be established based on an organization’s reasonable and supportable estimate of expected credit losses extends to held-to-maturity debt securities. The Company adopted CECL on January 1, 2020, using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. Results for the reporting periods after January 1, 2020, are presented under Topic 326, while prior period amounts continue to be reported in accordance with previously applicable GAAP. The following table shows the impact of adopting CECL on January 1, 2020: As Reported Pre- Impact of Under Topic 326 Topic 326 Topic 326 Adoption Adoption (Dollars in thousands) Assets: Allowance for credit losses on debt securities Held-to-maturity municipal securities $ 58 $ - $ 58 Loans Commercial 6,790 10,453 (3,663) CRE - owner occupied 6,994 3,825 3,169 CRE - non-owner occupied 11,672 3,760 7,912 Land and construction 1,458 2,621 (1,163) Home equity 1,321 2,244 (923) Multifamily 1,253

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss) ("AOCI")	12 Months Ended
Accumulated Other Comprehensive Income (Loss) ("AOCI")	Dec. 31, 2020
Accumulated Other Comprehensive Income ("AOCI")
Accumulated Other Comprehensive Income ("AOCI")	2) Accumulated Other Comprehensive Income (“AOCI”) The following table reflects the changes in AOCI by component for the periods indicated: Year Ended December 31, 2020 and 2019 Unamortized Unrealized Unrealized Gain on Gains (Losses) on Available- Available- for-Sale Defined for-Sale Securities Benefit Securities Reclassified Pension and I/O to Held-to- Plan Strips Maturity Items(1) Total (Dollars in thousands) Beginning balance January 1, 2020, net of taxes $ 1,602 $ 298 $ (11,678) $ (9,778) Other comprehensive income (loss) before reclassification, net of taxes 2,522 — (3,459) (937) Amounts reclassified from other comprehensive income (loss), net of taxes (195) (37) 230 (2) Net current period other comprehensive income (loss), net of taxes 2,327 (37) (3,229) (939) Ending balance December 31, 2020, net of taxes $ 3,929 $ 261 $ (14,907) $ (10,717) Beginning balance January 1, 2019, net of taxes $ (5,007) $ 344 $ (7,718) $ (12,381) Other comprehensive income (loss) before reclassification, net of taxes 7,075 — (4,022) 3,053 Amounts reclassified from other comprehensive income (loss), net of taxes (466) (46) 62 (450) Net current period other comprehensive income (loss), net of taxes 6,609 (46) (3,960) 2,603 Ending balance December 31, 2019, net of taxes $ 1,602 $ 298 $ (11,678) $ (9,778) (1) This AOCI component is included in the computation of net periodic benefit cost (see Note 14—Benefit Plans) and includes split-dollar life insurance benefit plan. Amounts Reclassified from AOCI(1) Year Ended December 31, Affected Line Item Where Details About AOCI Components 2020 2019 2018 Net Income is Presented (Dollars in thousands) Unrealized gains on available-for-sale securities and I/O strips $ 277 $ 661 $ 266 Gain on sales of securities (82) (195) (79) Income tax expense 195 466 187 Net of tax Amortization of unrealized gain on securities available-for-sale that were reclassified to securities held-to-maturity 52 65 44 Interest income on taxable securities (15) (19) (13) Income tax expense 37 46 31 Net of tax Amortization of defined benefit pension plan items (1) Prior transition obligation and actuarial losses (2) 60 96 65 Actuarial losses (3) (387) (184) (292) (327) (88) (227) Other noninterest expense 97 26 67 Income tax benefit (230) (62) (160) Net of tax Total reclassification from AOCI for the period $ 2 $ 450 $ 58 (1) This AOCI component is included in the computation of net periodic benefit cost (see Note 14 — Benefit Plans (2) This is related to the split dollar life insurance benefit plan. (3) This is related to the supplemental executive retirement plan.

Securities

Securities	12 Months Ended
Securities	Dec. 31, 2020
Securities
Securities	3) Securities The amortized cost and estimated fair value of securities at year-end were as follows: Gross Gross Allowance Estimated Amortized Unrealized Unrealized for Credit Fair December 31, 2020 Cost Gains (Losses) Losses Value (Dollars in thousands) Securities available-for-sale: Agency mortgage-backed securities $ 170,215 $ 5,111 $ — $ — $ 175,326 U.S. Treasury 59,797 651 — — 60,448 Total $ 230,012 $ 5,762 $ — $ — $ 235,774 Gross Gross Estimated Allowance Amortized Unrecognized Unrecognized Fair for Credit December 31, 2020 Cost Gains (Losses) Value Losses (Dollars in thousands) Securities held-to-maturity: Agency mortgage-backed securities $ 228,652 $ 6,075 $ (230) $ 234,497 $ — Municipals - exempt from Federal tax 68,791 1,639 — 70,430 (54) Total $ 297,443 $ 7,714 $ (230) $ 304,927 $ (54) Gross Gross Estimated Amortized Unrealized Unrealized Fair December 31, 2019 Cost Gains (Losses) Value (Dollars in thousands) Securities available-for-sale: Agency mortgage-backed securities $ 283,598 $ 934 $ (171) $ 284,361 U.S. Treasury 118,939 1,525 — 120,464 Total $ 402,537 $ 2,459 $ (171) $ 404,825 Gross Gross Estimated Amortized Unrecognized Unrecognized Fair December 31, 2019 Cost Gains (Losses) Value (Dollars in thousands) Securities held-to-maturity: Agency mortgage-backed securities $ 285,344 $ 1,206 $ (968) $ 285,582 Municipals - exempt from Federal tax 81,216 1,313 (4) 82,525 Total $ 366,560 $ 2,519 $ (972) $ 368,107 Securities with unrealized losses at year end, aggregated by investment category and length of time that individual securities have been in an unrealized loss position are as follows: Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2020 Value (Losses) Value (Losses) Value (Losses) (Dollars in thousands) Securities held-to-maturity: Agency mortgage-backed securities $ 30,930 (230) $ — $ — $ 30,930 $ (230) Total $ 30,930 $ (230) $ — $ — $ 30,930 $ (230) Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2019 Value (Losses) Value (Losses) Value (Losses) (Dollars in thousands) Securities available-for-sale: Agency mortgage-backed securities $ 100,816 $ (105) $ 27,534 $ (66) $ 128,350 $ (171) Total $ 100,816 $ (105) $ 27,534 $ (66) $ 128,350 $ (171) Securities held-to-maturity: Agency mortgage-backed securities $ 50,060 $ (178) $ 88,128 $ (790) $ 138,188 $ (968) Municipals - exempt from Federal tax 1,556 (4) — — 1,556 (4) Total $ 51,616 $ (182) $ 88,128 $ (790) $ 139,744 $ (972) There were no holdings of securities of any one issuer, other than the U.S. Government and its sponsored entities, in an amount greater than 10% of shareholders’ equity. At December 31, 2020, the Company held 407 securities (116 available-for-sale and 291 held-to-maturity), of which five had fair values below amortized cost. At December 31, 2020, there were $30,930,000 of agency mortgage-backed securities held-to-maturity, carried with an unrealized loss for less than 12 months. The total unrealized loss for securities less than 12 months was ($230,000) at December 31, 2020. The unrealized losses were due to higher interest rates at period end compared to when the securities were purchased. The issuers are of high credit quality and all principal amounts are expected to be paid when securities mature. The fair value is expected to recover as the securities approach their maturity date and/or market rates decline. The Company does not believe that it is more likely than not that the Company will be required to sell a security in an unrealized loss position prior to recovery in value. The Company does not consider these securities to have credit-related losses at December 31, 2020. The proceeds from sales of securities and the resulting gains and losses are listed below: 2020 2019 2018 (Dollars in thousands) Proceeds $ 56,598 $ 167,551 $ 94,291 Gross gains 277 1,094 1,243 Gross losses — (433) (977) The amortized cost and fair value of debt securities as of December 31, 2020, by contractual maturity, are shown below. The expected maturities will differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. Available-for-sale Amortized Estimated Cost Fair Value (Dollars in thousands) Due 3 months or less $ 14,988 $ 15,039 Due after 3 months through one year 44,809 45,409 Agency mortgage-backed securities 170,215 175,326 Total $ 230,012 $ 235,774 Held-to-maturity Amortized Estimated Cost Fair Value (Dollars in thousands) Due after 3 months through one year $ 493 $ 499 Due after one through five years 10,390 10,757 Due after five through ten years 31,509 32,149 Due after ten years 26,399 27,025 Agency mortgage-backed securities 228,652 234,497 Total $ 297,443 $ 304,927 Securities with amortized cost of $40,238,000 and $32,773,000 as of December 31, 2020 and 2019 were pledged to secure public deposits and for other purposes as required or permitted by law or contract. The table below presents a roll-forward by major security type for the year ended December 31, 2020 of the allowance for credit losses on debt securities held-to-maturity held at period end: Municipals (Dollars in thousands) Beginning balance January 1, 2020 $ - Impact of adopting Topic 326 58 Provision (credit) for credit loss (4) Ending balance December 31, 2020 $ 54 For the year ended December 31, 2020, there was a reduction of $4,000 to the allowance for credit losses on the Company’s held-to-maturity municipal investment securities portfolio. This reduction was the result of a reduction in municipal securities amortized balances resulting from regular payments. The bond ratings for the Company’s municipal investment securities at December 31, 2020 were consistent with the ratings at January 1, 2020.

Loans and Allowance for Credit

Loans and Allowance for Credit Losses on Loans	12 Months Ended
Loans and Allowance for Credit Losses on Loans	Dec. 31, 2020
Allowance for Credit Losses on Loans
Allowance for Credit Losses on Loans	4) Loans and Allowance for Credit Losses on Loans The allowance for credit losses on loans was calculated by pooling loans of similar credit risk characteristics and credit monitoring procedures. The loan portfolio is classified into eight segments of loans - commercial, commercial real estate – owner occupied, commercial real estate – non-owner occupied, land and construction, home equity, multifamily, residential mortgage and consumer and other. See Note 1 – Summary of Significant Accounting Polices - Allowance for Credit Losses on Loans Loans by portfolio segment and the allowance for credit losses on loans were as follows for the periods indicated: December 31, December 31, 2020 2019 (Dollars in thousands) Loans held-for-investment: Commercial $ 846,386 $ 603,345 Real estate: CRE - owner occupied 560,362 548,907 CRE - non-owner occupied 693,103 767,821 Land and construction 144,594 147,189 Home equity 111,885 151,775 Multifamily 166,425 180,623 Residential mortgages 85,116 100,759 Consumer and other 18,116 33,744 Loans 2,625,987 2,534,163 Deferred loan fees, net (6,726) (319) Loans, net of deferred fees 2,619,261 2,533,844 Allowance for credit losses on loans (1) (44,400) (23,285) Loans, net $ 2,574,861 $ 2,510,559 (1) Changes in the allowance for credit losses on loans were as follows: Year Ended December 31, 2020 Owner Non-owner Land & Home Multi- Residential Consumer Commercial Occupied Occupied Construction Equity Family Mortgage and Other Total (Dollars in thousands) Beginning of period balance $ 10,453 $ 3,825 $ 3,760 $ 2,621 $ 2,244 $ 57 $ 243 $ 82 $ 23,285 Adoption of Topic 326 (3,663) 3,169 7,912 (1,163) (923) 1,196 435 1,607 8,570 Balance at adoption on January 1, 2020 6,790 6,994 11,672 1,458 1,321 1,253 678 1,689 31,855 Charge-offs (1,776) — — — — — — (104) (1,880) Recoveries 998 1 — 70 93 — — 30 1,192 Net (charge-offs) recoveries (778) 1 — 70 93 — — (74) (688) Provision (credit) for credit losses on loans 5,575 1,565 4,744 981 (117) 1,551 265 (1,331) 13,233 End of period balance $ 11,587 $ 8,560 $ 16,416 $ 2,509 $ 1,297 $ 2,804 $ 943 $ 284 $ 44,400 evaluated loans are combined to the allowance on pools of loans with similar risk characteristics to derive to total allowance for credit losses on loans. The increase in the allowance for credit loss and related provision during the year ended December 31, 2020 is primarily attributable to the change in projected economic conditions resulting from the COVID-19 pandemic, with elevated levels of unemployment being the most significant factor. Management has also considered other qualitative risks such as collateral values, concentrations of credit risk (geographic, large borrower, and industry), economic conditions, changes in underwriting standards, experience and depth of lending staff, trends in delinquencies, and the level of criticized loans to address asset-specific risks and current conditions that were not fully considered by the macroeconomic variables driving the quantitative estimate. Changes in the allowance for loan losses were as follows: Year Ended December 31, 2019 Commercial Real Estate Consumer Total (Dollars in thousands) Beginning of period balance $ 17,061 $ 10,671 $ 116 $ 27,848 Charge-offs (6,609) — (14) (6,623) Recoveries 1,045 169 — 1,214 Net recoveries (5,564) 169 (14) (5,409) Provision (credit) for loan losses (1,044) 1,910 (20) 846 End of period balance $ 10,453 $ 12,750 $ 82 $ 23,285 Year Ended December 31, 2018 Commercial Real Estate Consumer Total (Dollars in thousands) Beginning of period balance $ 10,608 $ 8,950 $ 100 $ 19,658 Charge-offs (2,002) — (24) (2,026) Recoveries 2,645 150 — 2,795 Net recoveries 643 150 (24) 769 Provision for loan losses 5,810 1,571 40 7,421 End of period balance $ 17,061 $ 10,671 $ 116 $ 27,848 The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment, based on the impairment method as follows at year-end: December 31, 2019 Consumer Commercial Real Estate and other Total (Dollars in thousands) Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 1,835 $ — $ — $ 1,835 Collectively evaluated for impairment 8,618 12,750 82 21,450 Total allowance balance $ 10,453 $ 12,750 $ 82 $ 23,285 Loans: Individually evaluated for impairment $ 4,810 $ 5,454 $ — $ 10,264 Collectively evaluated for impairment 598,535 1,891,620 33,744 2,523,899 Total loan balance $ 603,345 $ 1,897,074 $ 33,744 $ 2,534,163 The following table presents the amortized cost basis of nonaccrual loans and loans past due over 90 days and still accruing at December 31, 2020: Restructured Nonaccrual Nonaccrual and Loans with no Specific with Specific over 90 Days Allowance for Allowance for Past Due Credit Credit and Still Losses Losses Accruing Total (Dollars in thousands) Commercial $ 752 $ 1,974 $ 81 $ 2,807 Real estate: CRE - Owner Occupied 3,706 — — 3,706 Home equity 949 — — 949 Consumer and other 407 — 407 Total $ 5,814 $ 1,974 $ 81 $ 7,869 The following table presents nonperforming loans by class at December 31, 2019: Restructured and Loans over 90 Days Past Due and Still Nonaccrual Accruing Total (Dollars in thousands) Commercial $ 3,444 $ 1,153 $ 4,597 Real estate: CRE 5,094 — 5,094 Home equity 137 — 137 Total $ 8,675 $ 1,153 $ 9,828 The following tables presents the aging of past due loans by class for the periods indicated: December 31, 2020 30 - 59 60 - 89 90 Days or Days Days Greater Total Past Due Past Due Past Due Past Due Current Total (Dollars in thousands) Commercial $ 3,524 $ 259 $ 392 $ 4,175 $ 842,211 $ 846,386 Real estate: CRE - Owner Occupied 1,133 — 29 1,162 559,200 560,362 CRE - Non-Owner Occupied — 485 — 485 692,618 693,103 Land and construction — — — — 144,594 144,594 Home equity — — — 111,885 111,885 Multifamily — — — — 166,425 166,425 Residential mortgages — — — — 85,116 85,116 Consumer and other — — 407 407 17,709 18,116 Total $ 4,657 $ 744 $ 828 $ 6,229 $ 2,619,758 $ 2,625,987 December 31, 2019 30 - 59 60 - 89 90 Days or Days Days Greater Total Past Due Past Due Past Due Past Due Current Total (Dollars in thousands) Commercial $ 4,770 $ 2,097 $ 3,217 $ 10,084 $ 593,261 $ 603,345 Real estate: CRE - Owner Occupied — — 5,094 5,094 543,813 548,907 CRE - Non-Owner Occupied — — — — 767,821 767,821 Land and construction — — — — 147,189 147,189 Home equity — 137 — 137 151,638 151,775 Multifamily — — — — 180,623 180,623 Residential mortgages — — — — 100,759 100,759 Consumer and other — — — — 33,744 33,744 Total $ 4,770 $ 2,234 $ 8,311 $ 15,315 $ 2,518,848 $ 2,534,163 Past due loans 30 days or greater totaled $6,229,000 and $15,315,000 at December 31, 2020 and December 31, 2019, respectively, of which $1,918,000 and $7,413,000 were on nonaccrual. At December 31, 2020, there were also $5,870,000 loans less than 30 days past due included in nonaccrual loans held-for-investment. At December 31, 2019, there were also $1,262,000 loans less than 30 days past due included in nonaccrual loans held-for-investment. Management’s classification of a loan as “nonaccrual” is an indication that there is reasonable doubt as to the full recovery of principal or interest on the loan. At that point, the Company stops accruing interest income, and reverses any uncollected interest that had been accrued as income. The Company begins recognizing interest income only as cash interest payments are received and it has been determined the collection of all outstanding principal is not in doubt. Credit Quality Indicators Concentrations of credit risk arise when a number of customers are engaged in similar business activities, or activities in the same geographic region, or have similar features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic conditions. The Company’s loan portfolio is concentrated in commercial (primarily manufacturing, wholesale, and service) and real estate lending, with the remaining balance in consumer loans. While no specific industry concentration is considered significant, the Company’s lending operations are located in the Company’s market areas that are dependent on the technology and real estate industries and their supporting companies. Thus, the Company’s borrowers could be adversely impacted by a downturn in these sectors of the economy which could reduce the demand for loans and adversely impact the borrowers’ ability to repay their loans. The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, and other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis is performed on a quarterly basis. Pass loans generally include those loans that are expected to be repaid in accordance with contractual loans terms. Loans not categorized as pass are assigned a rating using the following definitions: Special Mention. Substandard. Substandard-Nonaccrual. because of the underlying weaknesses. Doubtful. Loss. Loans may be reviewed at any time throughout a loan’s duration. If new information is provided, a new risk assessment may be performed if warranted. The following table presents term loans amortized cost by vintage and loan grade classification, and revolving loans amortized cost by loan grade classification. The loan grade classifications are based on the Bank’s internal loan grading methodology. Loan grade categories for doubtful and loss rated loans are not included on the table below as there are no loans with those grades at December 31, 2020. The vintage year represents the period the loan was originated or in the case of renewed loans, the period last renewed. The amortized balance is the loan balance less any purchase discounts, and plus any loan purchase premiums. The loan categories are based on the loan segmentation in the Company's CECL reserve methodology based on loan purpose and type. Revolving Loans Term Loans Amortized Cost Basis by Originated Period Amortized 2015 and Cost 2020 2019 2018 2017 2016 Prior Basis Total (Dollars in thousands) Commercial: Pass $ 431,369 $ 33,350 $ 21,154 $ 13,840 $ 7,341 $ 8,292 $ 296,286 $ 811,632 Special Mention 15,720 716 1,301 953 713 170 1,937 21,510 Substandard 4,036 - 19 758 2,396 73 3,236 10,518 Substandard-Nonaccrual 2,106 56 36 - 115 26 387 2,726 Total 453,231 34,122 22,510 15,551 10,565 8,561 301,846 846,386 CRE - Owner Occupied: Pass 168,224 73,064 68,068 51,705 50,716 109,350 15,964 537,091 Special Mention 3,151 2,568 4,128 783 - 2,569 - 13,199 Substandard 2,561 - 400 2,954 - 451 - 6,366 Substandard-Nonaccrual 3,678 - - - - 28 - 3,706 Total 177,614 75,632 72,596 55,442 50,716 112,398 15,964 560,362 CRE - Non-Owner Occupied: Pass 166,550 128,361 68,796 99,816 57,422 150,683 1,926 673,554 Special Mention 11,930 - 2,557 - - - - 14,487 Substandard 3,166 - 1,411 - 485 - - 5,062 Substandard-Nonaccrual - - - - - - - - Total 181,646 128,361 72,764 99,816 57,907 150,683 1,926 693,103 Land and construction: Pass 114,932 22,054 - - - 1,343 4,906 143,235 Special Mention - - - - - - - - Substandard 1,359 - - - - - - 1,359 Substandard-Nonaccrual - - - - - - - - Total 116,291 22,054 - - - 1,343 4,906 144,594 Home equity: Pass 266 - 74 - - - 109,848 110,188 Special Mention - - - - - - - - Substandard - - - - - 143 605 748 Substandard-Nonaccrual 117 - - - - - 832 949 Total 383 - 74 - - 143 111,285 111,885 Multifamily: Pass 31,481 39,183 17,248 24,572 16,235 30,751 880 160,350 Special Mention - - - - - 5,186 - 5,186 Substandard 889 - - - - - - 889 Substandard-Nonaccrual - - - - - - - - Total 32,370 39,183 17,248 24,572 16,235 35,937 880 166,425 Residential mortgage: Pass 12,798 10,048 3,246 7,324 28,115 15,568 - 77,099 Special Mention 5,089 - 1,630 - - - 6,719 Substandard - - - - - 1,298 - 1,298 Substandard-Nonaccrual - - - - - - - - Total 17,887 10,048 4,876 7,324 28,115 16,866 - 85,116 Consumer and other: Pass 10 522 1,486 20 116 987 14,568 17,709 Special Mention - - - - - - - - Substandard - - - - - - - - Substandard-Nonaccrual - - 407 - - - - 407 Total 10 522 1,893 20 116 987 14,568 18,116 Total loans $ 979,432 $ 309,922 $ 191,961 $ 202,725 $ 163,654 $ 326,918 $ 451,375 $ 2,625,987 Risk Grades:. Pass $ 925,630 $ 306,582 $ 180,072 $ 197,277 $ 159,945 $ 316,974 $ 444,378 $ 2,530,858 Special Mention 35,890 3,284 9,616 1,736 713 7,925 1,937 61,101 Substandard 12,011 - 1,830 3,712 2,881 1,965 3,841 26,240 Substandard-Nonaccrual 5,901 56 443 - 115 54 1,219 7,788 Grand Total $ 979,432 $ 309,922 $ 191,961 $ 202,725 $ 163,654 $ 326,918 $ 451,375 $ 2,625,987 The following table provides a summary of the loan portfolio by loan type and credit quality classification at December 31, 2019: December 31, 2019 Nonclassified Classified Total Commercial $ 599,143 4,202 $ 603,345 Real estate: CRE - Owner Occupied 538,229 10,678 548,907 CRE - Non-Owner Occupied 761,801 6,020 767,821 Land and construction 144,108 3,081 147,189 Home equity 149,131 2,644 151,775 Multifamily 180,623 — 180,623 Residential mortgages 100,262 497 100,759 Consumer and other 28,287 5,457 33,744 Total $ 2,501,584 $ 32,579 $ 2,534,163 Nonclassified loans include those rated as Pass or Special Mention using the definitions listed above. Classified loans are those rated Substandard, Substandard-Nonaccrual, Doubtful and Loss, using those definitions. The following table presents the amortized cost basis of collateral-dependent loans by loan classification at December 31, 2020: Collateral Type Real Estate Business Property Assets Unsecured Total (Dollars in thousands) Commercial $ 29 $ 1,815 $ 130 $ 1,974 Total $ 29 $ 1,815 $ 130 $ 1,974 When management determines that foreclosures are probable, expected credit losses for collateral-dependent loans are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. For loans which foreclosure is not probable, but for which repayment is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty, management has elected the practical expedient under ASC 326 to estimate expected credit losses based on the fair value of collateral, adjusted for selling costs as appropriate. The class of loan represents the primary collateral type associated with the loan. Significant quarter over quarter changes are reflective of changes in nonaccrual status and not necessarily associated with credit quality indicators like appraisal value. The following table details the allowance for loan losses and recorded investment in loans individually evaluated for impairment by loan classification as of December 31, 2019, as determined in accordance with ASC 310 prior to adoption of Topic 326: Allowance Unpaid for Loan Principal Recorded Losses Balance Investment Allocated (Dollars in thousands) With no related allowance recorded: Commercial $ 2,113 $ 2,113 $ — Real estate: CRE 5,094 5,094 — Home Equity 360 360 — Total with no related allowance recorded 7,567 7,567 — With an allowance recorded: Commercial 2,697 2,697 1,835 Total with an allowance recorded 2,697 2,697 1,835 Total $ 10,264 $ 10,264 $ 1,835 The book balance of troubled debt restructurings at December 31, 2020 was $674,000, which included $468,000 of nonaccrual loans and $206,000 of accruing loans. The book balance of troubled debt restructurings at December 31, 2019 was $1,039,000, which included $590,000 of nonaccrual loans and $449,000 of accruing loans. Approximately $352,000 and $20,000 in specific reserves were established with respect to these loans as of December 31, 2020 and December 31, 2019. As of December 31, 2020 and December 31, 2019, the Company had no additional amounts committed on any loan classified as a troubled debt restructuring. The following table presents loans by class modified as troubled debt restructurings for the periods indicated: During the Year Ended December 31, 2020 Pre-modification Post-modification Number Outstanding Outstanding of Recorded Recorded Troubled Debt Restructurings: Contracts Investment Investment (Dollars in thousands) Commercial 15 $ 630 $ 630 Total 15 $ 630 $ 630 During the Year Ended December 31, 2019 Pre-modification Post-modification Number Outstanding Outstanding of Recorded Recorded Troubled Debt Restructurings: Contracts Investment Investment (Dollars in thousands) Commercial 3 $ 591 $ 591 Total 3 $ 591 $ 591 There were 15 new loans with total recorded investment of $630,000 that were modified as troubled debt restructurings during the year ended December 31, 2020. During the twelve months ended December 31, 2020, there were debt restructurings in which the amount of principal or accrued interest owed from the borrower was forgiven or which resulted in a charge-off or change to the allowance for credit losses on loans. A loan is considered to be in payment default when it is 30 days contractually past due under the modified terms. There were no defaults on troubled debt restructurings, within twelve months following the modification, during the years ended December 31, 2020 and 2019. A loan that is a troubled debt restructuring on nonaccrual status may return to accruing status after a period of at least six months of consecutive payments in accordance with the modified terms. On March 22, 2020, the Interagency Statement was issued by our banking regulators that encourages financial institutions to work prudently with borrowers who are or may be unable to meet their contractual payment obligations due to the effects of COVID-19. Additionally, Section 4013 of the CARES Act further provides that a qualified loan modification is exempt by law from classification as a TDR as defined by GAAP, from the period beginning March 1, 2020 until the earlier of December 31, 2020 or the date that is 60 days after the date on which the national emergency concerning the COVID-19 outbreak declared by the President of the United States under the National Emergencies Act terminates. The Interagency Statement was subsequently revised in April 2020 to clarify the interaction of the original guidance with Section 4013 of the CARES Act, as well as setting forth the banking regulators’ views on consumer protection considerations. Section 541 of the Consolidated Appropriations Act extends this relief to the earlier of January 1, 2022 or 60 days after the national emergency termination date. In accordance with such guidance, we are offering short-term modifications made in response to COVID-19 to borrowers who are current and otherwise not past due. These include short-term (180 days or less) modifications in the form of payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant. The table below presents these loan deferrals by loan category: Underlying Collateral Business Real Assets Estate Total (in $000's, unaudited) Initial Deferments (1) $ - $ 1,573 $ 1,573 2nd Deferments (2) 295 684 979 Total $ 295 $ 2,257 $ 2,552 (1) (2)

Loan Servicing

Loan Servicing	12 Months Ended
Loan Servicing	Dec. 31, 2020
Loan Servicing
Loan Servicing	5) Loan Servicing At December 31, 2020, 2019, and 2018, the Company serviced SBA loans sold to the secondary market of approximately $77,973,000, $87,835,000, and $104,016,000, respectively. Servicing assets represent the servicing spread generated from the sold guaranteed portions of SBA loans. The weighted average servicing rate for all loans serviced was 1.12%, 1.16%, and 1.12% at December 31, 2020, 2019, and 2018, respectively. Servicing rights are included in “accrued interest receivable and other assets” on the consolidated balance sheets. Activity for loan servicing rights follows: 2020 2019 2018 (Dollars in thousands) Beginning of year balance $ 583 $ 871 $ 1,373 Additions 213 157 200 Amortization (265) (445) (702) End of year balance $ 531 $ 583 $ 871 There was no valuation allowance for servicing rights at December 31, 2020, 2019, and 2018, because the estimated fair value of the servicing rights was greater than the carrying value. The estimated fair value of loan servicing rights was $1,172,000, $1,295,000, and $1,651,000, at December 31, 2020, 2019, and 2018, respectively. The fair value of servicing rights at December 31, 2020, was estimated using a weighted average constant prepayment rate (“CPR”) assumption of 14.65%, and a weighted average discount rate assumption of 12.91%. The fair value of servicing rights at December 31, 2019, was estimated using a weighted average CPR assumption of 13.50%, and a weighted average discount rate assumption of 15.90%. The fair value of servicing rights at December 31, 2018, was estimated using a weighted average CPR assumption of 10.89%, and a weighted average discount rate assumption of 16.40%. The weighted average discount rate and CPR assumptions used to estimate the fair value of the I/O strip receivables are the same as for the servicing rights. Management reviews the key economic assumptions used to estimate the fair value of I/O strip receivables on a quarterly basis. The fair value of the I/O strip can be adversely impacted by a significant increase in either the prepayment speed of the portfolio or the discount rate. I/O strip receivables are included in “accrued interest receivable and other assets” on the consolidated balance sheets. Activity for I/O strip receivables follows: 2020 2019 2018 (Dollars in thousands) Beginning of year balance $ 503 $ 568 $ 968 Unrealized loss (198) (65) (400) End of year balance $ 305 $ 503 $ 568

Premises and Equipment

Premises and Equipment	12 Months Ended
Premises and Equipment	Dec. 31, 2020
Premises and Equipment
Premises and Equipment	6) Premises and Equipment Premises and equipment at year-end were as follows: 2020 2019 (Dollars in thousands) Building $ 3,508 $ 3,508 Land 2,900 2,900 Furniture and equipment 12,721 10,067 Leasehold improvements 6,726 7,372 25,855 23,847 Accumulated depreciation and amortization (15,396) (15,597) Premises and equipment, net $ 10,459 $ 8,250 Depreciation and amortization expense was $951,000, $846,000, and $753,000 in 2020, 2019, and 2018, respectively.

Leases

Leases	12 Months Ended
Leases	Dec. 31, 2020
Leases
Leases	7) Leases On January 1, 2019, the Company adopted ASU No. 2016-02, Leases (Topic 842). Under the new guidance, the Company recognizes the following for all leases, at the commencement date: (1) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right-of-use (“ROU”) asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. The Company is impacted as a lessee of the offices and real estate used for operations. Some of the Company's lease agreements include options to renew liabilities The following table presents the quantitative information for the Company’s leases: December 31, 2020 2019 (Dollars in thousands) Operating Lease Cost (Cost resulting from lease payments) $ 6,837 $ 1,490 Operating Lease - Operating Cash Flows (Fixed Payments) $ 5,572 $ 1,519 Operating Lease - ROU assets $ 35,873 $ 12,173 Operating Lease – Liabilities $ 35,873 $ 13,032 Weighted Average Lease Term - Operating Leases 8.30 yrs 4.79 yrs Weighted Average Discount Rate - Operating Leases 4.55% 3.86% The following maturity analysis shows the undiscounted cash flows due on the Company’s operating lease liabilities: (Dollars in thousands) 2021 $ 5,242 2022 5,668 2023 5,039 2024 4,692 2025 4,262 Thereafter 18,798 Total undiscounted cash flows 43,701 Discount on cash flows (7,828) Total lease liability $ 35,873 The merger with Presidio resulted in the Company operating overlapping branch locations in the cities of Walnut Creek and San Mateo, California. These branches were consolidated in 2020 by vacating the HBC leased locations prior to the lease termination date, and moving the operations to the Presidio branch locations. The consolidation of these two branches into the Presidio locations resulted in the impairment of both Heritage leases at December 31, 2019. The lease impairment and write-off of fixed assets and tenant improvements totaled $434,000 for the Walnut Creek location, and $625,000 for the San Mateo location during the fourth quarter of 2019. In June of 2019, the Company entered into a lease agreement for 54,910 square feet of office space in San Jose, California, commencing on February 1, 2020. The Company completed the relocation of its corporate headquarters, San Jose Branch and factoring subsidiary, Bay View Funding to 224 Airport Parkway, San Jose, California in the third quarter of 2020.

Business Combinations

Business Combinations	12 Months Ended
Business Combinations	Dec. 31, 2020
Business Combinations
Business Combinations	8) Business Combinations On April 6, 2018, the Company completed its acquisition of Tri-Valley for a transaction value of $32,320,000. At closing the Company issued 1,889,613 shares of the Company’s common stock with an aggregate market value of $30,725,000 on the date of closing. The number of shares issued was based on a fixed exchange ratio of 0.0489 of a share of the Company’s common stock for each outstanding share of Tri-Valley common stock. In addition, at closing the Company paid cash to the holder of a stock warrant and holders of outstanding stock options and related fees and fractional shares totaling $1,595,000. Tri-Valley’s results of operations were included in the Company’s results of operations beginning April 7, 2018. On May 4, 2018, the Company completed its acquisition of United American for a transaction value of $56,417,000. At closing the Company issued 2,826,032 shares of the Company’s common stock with an aggregate market value of $47,280,000 on the date of closing. The number of shares issued was based on a fixed exchange ratio of 2.1644 of a share of the Company’s common stock for each outstanding share of United American common stock and each common stock equivalent underlying the United American Series D Preferred Stock and Series E Preferred Stock. The shareholders of the United American Series A Preferred Stock and Series B Preferred Stock received $1,000 cash for each share totaling $8,700,000 and $435,000, respectively. In addition, the Company paid $2,000 in cash for fractional shares, for total cash consideration of $9,137,000. United American’s results of operations were included in the Company’s results of operations beginning May 5, 2018. (Dollars in thousands) Issuance of to Presidio shareholders and holders of restricted stock (stock price = $ 178,171 Consideration for Presidio stock options exchanged for Heritage Commerce Corp stock options 7,426 Cash paid for fractional shares 1 Total consideration $ 185,598 The following table summarizes the estimated fair values of the Presidio assets acquired and liabilities assumed at the date of the merger. As As Recorded Fair Recorded by Value at Presidio Adjustments Acquisition (Dollars in thousands) Assets acquired: Cash and cash equivalents $ 117,989 $ (1) (a) $ 117,988 Securities available-for-sale 44,647 422 (b) 45,069 Securities held-to-maturity 463 — 463 Loans 698,493 (12,529) (c) 685,964 Allowance for loan losses (7,463) 7,463 (d) — Premises and equipment, net 1,756 — 1,756 Other intangible assets — 11,147 (e) 11,147 Other assets, net 43,539 (1,378) (f) 42,161 Total assets acquired $ 899,424 $ 5,124 904,548 Liabilities assumed: Deposits $ 774,260 $ (1) (g) 774,259 Subordinated Debt 10,000 — (h) 10,000 Other borrowings 442 — 442 Other liabilities 17,916 211 (i) 18,127 Total liabilities assumed $ 802,618 $ 210 802,828 Net assets acquired 101,720 Purchase price 185,598 Goodwill recorded in the merger $ 83,878 Explanation of certain fair value related adjustments for the Presidio merger: (a) Represents cash paid for fractional shares in the transaction. (b) Represents the fair value adjustment on investment securities available-for-sale. (c) Represents the fair value adjustment to the net book value of loans includes an interest rate mark and credit mark adjustment. (d) Represents the elimination of Presidio’s allowance for loan losses. (e) Represents intangible assets recorded to reflect the fair value of core deposits and an above market lease. The core deposit asset was recorded as an identifiable intangible asset and is amortized on an accelerated basis over the estimated average life of the deposit base. The above market lease liability will be accreted on the straight line method over 60 months . (f) Represents an adjustment to net deferred tax assets resulting from the fair value adjustments related to the acquired assets, liabilities assumed and identifiable intangible assets recorded. (g) Represents the fair value adjustment on time deposits, which was amortized as interest expense. (h) The Company acquired $10,000,000 of subordinated debt from the Presidio transaction. The Presidio subordinated debt was redeemed on December 19, 2019. (i) Represents adjustments to accrued accounts payable. Presidio’s results of operations were included in the Company’s results of operations beginning October 12, 2019. The following table presents pro forma financial information as if the merger had occurred on January 1, 2018, which includes the pre-acquisition period for Presidio. The historical unaudited pro forma financial information has been adjusted to reflect supportable items that are directly attributable to the acquisition and expected to have a continuing impact on consolidated results of operations, as such, one-time acquisition costs are not included. The unaudited pro forma financial information is provided for informational purposes only. The unaudited pro forma financial information is not necessarily, and should not be assumed to be, an indication of the results that would have been achieved had the acquisition been completed as of the dates indicated or that may be achieved in the future. The preparation of the unaudited pro forma combined consolidated financial statements and related adjustments required management to make certain assumptions and estimates. For the Year Ended December 31, 2019 December 31, 2018 (Unaudited) (Dollars in thousands, except per share amounts) Net interest income $ 163,555 $ 160,044 Provision for loan losses 870 7,694 Noninterest income 11,291 10,795 Noninterest expense 92,708 97,563 Income before income taxes 81,268 65,582 Income tax expense 23,730 17,549 Net income $ 57,538 $ 48,033 Net income per share - basic $ 0.98 $ 0.84 Net income per share - diluted $ 0.96 $ 0.83 For the Year Ended December 31, December 31, December 31, 2020 2019 2018 (Dollars in thousands) Salaries and employee benefits $ 356 $ 6,580 $ 3,569 Other 2,245 4,500 5,598 Total merger-related costs $ 2,601 $ 11,080 $ 9,167 Goodwill of $13,819,000 arising from the Tri-Valley acquisition, $24,271,000 from the United American acquisition and $83,878,000 from the Presidio merger is largely attributable to synergies and cost savings resulting from combining the operations of the companies. As these transactions were structured as tax-free exchanges, the goodwill will not be deductible for tax purposes. As of April 6, 2019, May 4, 2019, and October 11, 2020, the Company finalized its valuation of all assets acquired and liabilities assumed in its acquisition of Tri-Valley, United American, and Presidio respectively, resulting in no material changes to acquisition accounting adjustments.

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	12 Months Ended
Goodwill and Other Intangible Assets	Dec. 31, 2020
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets	9) Goodwill and Other Intangible Assets Goodwill At December 31, 2020, the carrying value of goodwill was $167,631,000, which included $13,044,000 of goodwill related to its acquisition of Bay View Funding, $32,619,000 from its acquisition of Focus Business Bank (“Bank”), $13,819,000 from its acquisition of Tri-Valley, $24,271,000 from its acquisition of United American and $83,878,000 from Presidio. Goodwill impairment exists when a reporting unit’s carrying value exceeds its fair value, which is determined through a qualitative assessment whether it is more likely than not that the fair value of equity of the reporting unit exceeds the carrying value (“Step Zero”). If the qualitative assessment indicates it is more likely than not that the fair value of equity of a reporting unit is less than book value, then a quantitative two-step impairment test is required. Step 1 includes the determination of the carrying value of the Company’s reporting units, including the existing goodwill and intangible assets, and estimating the fair value of each reporting unit. The Company completed its annual goodwill impairment analysis as of November 30, 2020 with the assistance of an independent valuation firm. The goodwill related to the acquisition of Bay View Funding was tested separately for impairment under this analysis. No events or circumstances since the November 30, 2020 annual impairment test were noted that would indicate it was more likely than not a goodwill impairment exists, for either the Company’s banking or factoring reporting units. The following table summarizes the carrying amount of goodwill by segment at December 31, 2020 and 2019: December 31, 2020 2019 (Dollars in thousands) Banking $ 154,587 $ 154,376 Factoring 13,044 13,044 Total Goodwill $ 167,631 $ 167,420 Other Intangible Assets The Company’s intangible assets are summarized as follows for the periods indicated: December 31, 2020 Gross Carrying Accumulated Amount Amortization Total (Dollars in thousands) Core deposit intangibles $ 25,023 $ (9,153) $ 15,870 Customer relationship and brokered relationship intangibles 1,900 (1,171) 729 Below market leases 770 (705) 65 Total $ 27,693 $ (11,029) $ 16,664 December 31, 2019 Gross Carrying Accumulated Amount Amortization Total (Dollars in thousands) Core deposit intangibles $ 25,023 $ (5,846) $ 19,177 Customer relationship and brokered relationship intangibles 1,900 (981) 919 Below market leases 770 (451) 319 Total $ 27,693 $ (7,278) $ 20,415 Estimated amortization expense for each of the next five years and thereafter is as follows: United United Bay View Funding Presidio Presidio American American Tri-Valley Tri-Valley Focus Customer & Core Above Core Below Core Below Core Brokered Total Deposit Market Deposit Market Deposit Market Deposit Relationship Amortization Year Intangible Lease Intangible Lease Intangible Lease Intangible Intangible Expense (Dollars in thousands) 2021 $ 1,447 $ (20) $ 602 $ (21) $ 184 $ 18 $ 596 $ 190 $ 2,996 2022 1,225 (20) 553 — 167 18 502 190 2,635 2023 1,118 (20) 521 — 158 18 420 190 2,405 2024 1,026 (13) 499 — 152 18 346 159 2,187 2025 970 — 478 — 145 18 202 — 1,813 Thereafter 3,211 — 1,042 — 306 69 — — 4,628 $ 8,997 $ (73) $ 3,695 $ (21) $ 1,112 $ 159 $ 2,066 $ 729 $ 16,664 Impairment testing of the intangible assets is performed at the individual asset level. Impairment exists if the carrying amount of the asset is not recoverable and exceeds its fair value at the date of the impairment test. For intangible assets, estimates of expected future cash flows (cash inflows less cash outflows) that are directly associated with an intangible asset are used to determine the fair value of that asset. Management makes certain estimates and assumptions in determining the expected future cash flows from core deposit and customer relationship intangibles including account attrition, expected lives, discount rates, interest rates, servicing costs and other factors. Significant changes in these estimates and assumptions could adversely impact the valuation of these intangible assets. If an impairment loss exists, the carrying amount of the intangible asset is adjusted to a new cost basis. The new cost basis is then amortized over the remaining useful life of the asset. Based on its assessment, management concluded that there was no impairment of intangible assets at December 31, 2020 and December 31, 2019.

Deposits

Deposits	12 Months Ended
Deposits	Dec. 31, 2020
Deposits.
Deposits	10) Deposits The following table presents the scheduled maturities of all time deposits for the next five years: (Dollars in thousands) 2021 $ 138,100 2022 10,255 2023 4,126 2024 435 2025 491 Total $ 153,407 Time deposits of $250,000 and over were $103,746,000 and $99,882,000 at December 31, 2020 and 2019, respectively. At December 31, 2020, Certificate of Deposit Account Registry Service (“CDARS”) deposits totaled $23,911,000 which were comprised of money market deposits of $663,000, and interest-bearing demand deposits of $18,614,000, (which have no scheduled maturity date, and therefore, are excluded from the table above), and time deposits of $4,634,000, (which are included in the table above). At December 31, 2019, CDARS deposits totaled $28,847,000, which were comprised of money market deposits of $2,171,000, and interest-bearing demand deposits of $12,885,000, (which have no scheduled maturity date, and therefore, are excluded from the table above), and time deposits of $13,791,000, (which are included in the table above). The CDARS program allows customers with deposits in excess of FDIC-insured limits to obtain full coverage on time deposits through a network of banks within the CDARS program. Deposits gathered through these programs are not considered brokered deposits under current regulatory reporting guidelines. Deposits from executive officers, directors, and their affiliates were $4,491,000 and $12,636,000 at December 31, 2020 and 2019, respectively.

Borrowing Arrangements

Borrowing Arrangements	12 Months Ended
Borrowing Arrangements	Dec. 31, 2020
Borrowing Arrangements
Borrowing Arrangements	11) Borrowing Arrangements Federal Home Loan Bank Borrowings, Federal Reserve Bank Borrowings, and Available Lines of Credit HBC maintains a collateralized line of credit with the FHLB of San Francisco. Under this line, the Company can borrow from the FHLB on a short-term (typically overnight) or long-term (over one year) basis. As of December 31, 2020, and December 31, 2019, HBC had no overnight borrowings from the FHLB. HBC had $232,632,000 of loans and pledged to the FHLB as collateral on a line of credit of $160,523,000 at December 31, 2020. HBC also had $3,202,000 of securities pledged to the FHLB as collateral on an available line of credit of $3,041,000 at December 31, 2020, none of which was outstanding. HBC had $272,879,000 of loans and no securities pledged to the FHLB as collateral on a line of credit of $228,103,000 at December 31, 2019. HBC can also borrow from the FRB’s discount window. HBC had approximately $921,373,000 of loans pledged to the FRB as collateral on an available line of credit of approximately $528,064,000 at December 31, 2020, none At December 31, 2020, HBC had Federal funds purchase arrangements available of $80,000,000. There were no Federal funds purchased outstanding at December 31, 2020 and 2019. HCC has a $10,000,000 line of credit with a correspondent bank, of which none HBC may also utilize securities sold under repurchase agreements to manage our liquidity position. There were no securities sold under agreements to repurchase at December 31, 2020, and 2019. Subordinated Debt On May 26, 2017, the Company completed an underwritten public offering of $40,000,000 aggregate principal amount of its fixed-to-floating rate subordinated notes (“Subordinated Debt”) due June 1, 2027. The Subordinated Debt initially bears a fixed interest rate of 5.25% per year. Commencing on June 1, 2022, the interest rate on the Subordinated Debt resets quarterly to the three-month LIBOR rate plus a spread of 336.5 basis points, payable quarterly in arrears. Interest on the Subordinated Debt is payable semi-annually on June 1st and December 1st of each year through June 1, 2022 and quarterly thereafter on March 1st, June 1st, September 1st and December 1st of each year through the maturity date or early redemption date. The Company, at its option, may redeem the Subordinated Debt, in whole or in part, on any interest payment date on or after June 1, 2022 without a premium. Unamortized debt issuance cost totaled $260,000 at December 31, 2020. See “ LIBOR Transition and Phase–Out The Company acquired $10,000,000 of subordinated debt from the Presidio transaction with an interest rate of 8%, which was redeemed on December 19, 2019. As a result of the redemption of the Presidio subordinated debt, the Company paid a pre-payment penalty of $300,000 during the fourth quarter of 2019.

Income Taxes

Income Taxes	12 Months Ended
Income Taxes	Dec. 31, 2020
Income Taxes
Income Taxes	12) Income Taxes Income tax expense (benefit) consisted of the following for the year ended December 31, as follows: 2020 2019 2018 (Dollars in thousands) Currently payable tax: Federal $ 9,630 $ 7,631 $ 9,187 State 5,828 4,689 5,416 Total currently payable 15,458 12,320 14,603 Deferred tax expense (benefit): Federal (932) 2,200 (1,133) State (757) 1,331 (146) Total deferred tax (1,689) 3,531 (1,279) Income tax expense $ 13,769 $ 15,851 $ 13,324 The effective tax rate differs from the Federal statutory rate for the years ended December 31, as follows: 2020 2019 2018 Statutory Federal income tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal tax benefit 8.2 % 8.5 % 8.5 % Low income housing credits, net of investment losses (0.5) % (0.5) % (0.8) % Increase in cash surrender value of life insurance (0.8) % (0.5) % (0.5) % Stock option/restricted stock windfall tax benefit 0.6 % (0.3) % (0.9) % Non-taxable interest income (0.8) % (0.8) % (0.9) % Split-dollar term insurance 0.1 % 0.1 % 0.1 % Merger cost 0.0 % 0.5 % 0.5 % Other, net 0.3 % 0.1 % 0.4 % Effective tax rate 28.1 % 28.1 % 27.4 % Deferred tax assets and liabilities that result from the tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes at December 31, are as follows: 2020 2019 (Dollars in thousands) Deferred tax assets: Allowance for credit losses on loans $ 12,827 $ 7,231 Lease accounting 10,537 1,647 Defined postretirement benefit obligation 10,419 9,901 Accrued expenses 2,896 2,562 Federal net operating loss carryforwards 2,846 3,662 Stock compensation 1,894 1,636 State income taxes 1,142 954 California net operating loss carryforwards 1,106 1,489 Premises and equipment 459 695 Nonaccrual interest 101 61 Split-dollar life insurance benefit plan 80 75 Tax credit carryforwards 57 57 Other 469 654 Total deferred tax assets 44,833 30,624 Deferred tax liabilities: Lease accounting (10,537) (1,647) Loan fees (1,820) (1,842) Securities available-for-sale (1,764) (772) Intangible liabilities (1,388) (1,321) Prepaid expenses (689) (289) FHLB stock (166) (177) I/O strips (87) (144) Other (161) (130) Total deferred tax liabilities (16,612) (6,322) Net deferred tax assets $ 28,221 $ 24,302 At December 31, 2020, the Company's federal net operating loss (“NOL”) carryforwards were $13,553,000 and the Company's California net operating loss carryforwards were $12,903,000. These amounts are attributable to the merger transactions. The realization of these NOL carryforwards for Federal and State tax purposes are limited on the amount of net operating losses that can be utilized annually under the current tax law. The Company does not believe that its annual limitation on each acquisition will impact the ultimate deductibility of the NOL carryforwards. The State tax credit carryforwards, net of Federal tax effects, were $72,567 as of December 31, 2020 which will begin to expire in 2022. Since the Company will be able to fully utilize the net operating loss carryforwards before they begin to expire in 2029, no valuation allowance is required against the deferred tax assets. Under generally accepted accounting principles, a valuation allowance is required if it is “more likely than not” that a deferred tax asset will not be realized. The determination of the realizability of the deferred tax assets is highly subjective and dependent upon judgment concerning management’s evaluation of both positive and negative evidence, including forecasts of future income, cumulative losses, applicable tax planning strategies, and assessments of current and future economic and business conditions. As of December 31, 2020 and 2019 the Company’s recorded amount of uncertain tax positions was not considered significant for financial reporting and the Company does not expect this amount to significantly increase or decrease in the next twelve months. At December 31, 2020, and December 31, 2019, the Company had net deferred tax assets of $28,221,000 and $24,302,000, respectively. At December 31, 2020, the Company determined that a valuation allowance for deferred tax assets was not necessary. The Company and its subsidiaries are subject to U.S. Federal income tax as well as income tax of the State of California. The Company is no longer subject to examination by Federal and state taxing authorities for years before 2017, and by the State of California taxing authority for years before 2016. The following table reflects the carrying amounts of the low income housing investments included in accrued interest receivable and other assets, and the future commitments included in accrued interest payable and other liabilities for the periods indicated: December 31, December 31, 2020 2019 (Dollars in thousands) Low income housing investments $ 5,246 $ 6,126 Future commitments $ 596 $ 625 The Company expects $46,000 of the future commitments to be paid in 2021, and $550,000 in 2022 through 2025. For tax purposes, the Company recognized low income housing tax credits of $839,000 and $511,000 for the years ended December 31, 2020 and December 2019, respectively, and low income housing investment expense of $850,000 and $520,000, respectively. The Company recognizes low income housing investment expenses as a component of income tax expense.

Equity Plan

Equity Plan	12 Months Ended
Equity Plan	Dec. 31, 2020
Equity Plan
Equity Plan	13) Equity Plan The Company maintained an Amended and Restated 2004 Equity Plan (the “2004 Plan”) for directors, officers, and key employees. The 2004 Plan was terminated on May 23, 2013. The Company’s shareholders approved the 2013 Equity Incentive Plan (the “2013 Plan”). The equity plans provide for the grant of incentive and nonqualified stock options and restricted stock. The equity plans provide that the option price for both incentive and nonqualified stock options will be determined by the Board of Directors at no less than the fair value at the date of grant. Options granted vest on a schedule determined by the Board of Directors at the time of grant. Generally options vest over four years. All options expire no later than ten years from the date of grant. Restricted stock is subject to time vesting. In 2020, the Company granted 329,500 shares of nonqualified stock options and 168,117 shares of restricted stock subject to time vesting requirements. There were 2,409,062 shares available for the issuance of equity awards under the 2013 Plan as of December 31, 2020. The Presidio equity plans were assumed by the Company and the outstanding options issued under the Presidio equity plans were converted into the right to receive the Company’s shares at the exercise price pursuant to the formula defined in the merger agreement. Consideration for the assumed Presidio stock options exchanged for 1,176,757 shares of the Company’s stock options totaled $7,426,000. Stock option activity under the equity plans is as follows: Weighted Weighted Average Average Remaining Aggregate Number Exercise Contractual Intrinsic Total Stock Options of Shares Price Life (Years) Value Outstanding at January 1, 2020 2,712,846 $ 8.80 Granted 329,500 $ 9.11 Exercised (381,184) $ 4.50 Forfeited or expired (114,341) $ 12.93 Outstanding at December 31, 2020 2,546,821 $ 9.30 5.43 $ 3,473,312 Vested or expected to vest 2,394,012 5.43 $ 3,264,913 Exercisable at December 31, 2020 2,017,899 4.60 $ 3,473,312 Information related to the equity plans for each of the last three years: December 31, 2020 2019 2018 Intrinsic value of options exercised $ 2,258,245 $ 1,618,615 $ 1,844,909 Cash received from option exercise $ 1,713,737 $ 1,626,113 $ 2,667,305 Tax benefit realized from option exercises $ 63,124 $ 258,037 $ 534,638 Weighted average fair value of options granted $ 1.15 $ 1.91 $ 3.03 As of December 31, 2020, there was $894,000 of total unrecognized compensation cost related to nonvested stock options granted under the equity plans. That cost is expected to be recognized over a weighted-average period of approximately 2.63 years. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model that uses the assumptions noted in the following table, including the weighted average assumptions for the option grants in each year. December 31, 2020 2019 2018 Expected life in months(1) 72 72 72 Volatility(1) 29 % 24 % 21 % Weighted average risk-free interest rate(2) 0.53 % 2.23 % 2.88 % Expected dividends(3) 5.71 % 3.95 % 2.64 % (1) The expected life of employee stock options represents the weighted average period the stock options are expected to remain outstanding based on historical experience. Volatility is based on the historical volatility of the stock price over the same period of the expected life of the option. (2) Based on the U.S. Treasury constant maturity interest rate with a term consistent with the expected life of the option granted. (3) Each grant’s dividend yield is calculated by annualizing the most recent quarterly cash dividend and dividing that amount by the market price of the Company’s common stock as of the grant date The Company estimates the impact of forfeitures based on historical experience. Should the Company’s current estimate change, additional expense could be recognized or reversed in future periods. The Company issues authorized shares of common stock to satisfy stock option exercises. Restricted stock activity under the equity plans is as follows: Weighted Average Grant Number Date Fair Total Restricted Stock Award of Shares Value Nonvested shares at January 1, 2020 239,453 $ 11.23 Granted 168,117 $ 9.20 Vested (108,870) $ 13.19 Forfeited or expired — $ — Nonvested shares at December 31, 2020 298,700 $ 10.83 As of December 31, 2020, there was $2,198,000 of total unrecognized compensation cost related to nonvested restricted stock awards granted under the 2013 Plan. The cost is expected to be recognized over a weighted-average period of approximately 1.76 years. The Company has two share based compensation plans. Total compensation cost has been charged against income for those plans was $2,248,000, $1,924,000, $1,817,000, for 2020, 2019, and 2018, respectively. The total income tax expense was $301,000 for the year ended December 31, 2020. The total income tax benefit was ($146,000), and ($424,000) for the years ended December 31, 2019, and 2018, respectively.

Benefit Plans

Benefit Plans	12 Months Ended
Benefit Plans	Dec. 31, 2020
Benefit Plans
Benefit Plans	14) Benefit Plans 401(k) Savings Plan The Company offers a 401(k) savings plan that allows employees to contribute up to a maximum percentage of their compensation, as established by the Internal Revenue Code. The Company made a discretionary matching contribution of up to $3,000 for each employee’s contributions in 2020 and 2019. Contribution expense was $942,000, $934,000, and $749,000 in 2020, 2019 and 2018, respectively. Employee Stock Ownership Plan The Company sponsors a non-contributory employee stock ownership plan (“ESOP”). To participate in this plan, an employee must have worked at least 1,000 hours during the year and must be employed by the Company at year-end. Employer contributions to the ESOP are discretionary. The Company has suspended contributions to the ESOP since 2010. The Plan was “frozen” as of January 1, 2019. At December 31, 2020, the ESOP owned 101,231 shares of the Company’s common stock. Deferred Compensation Plan The Company has a nonqualified deferred compensation plan for some of its employees. Under the deferred compensation plan, an employee may defer up to 100% of their bonus and 50% of their regular salary into a deferred account. Amounts deferred are invested in a portfolio of approved investment choices as directed by the employee. Amounts deferred by employees to the deferred compensation plan will be distributed at a future date they have selected or upon termination of employment. There were eight and five employees who elected to participate in the deferred compensation plan during 2020 and 2019, respectively. Nonqualified Defined Benefit Pension Plan The Company has a supplemental retirement plan (“SERP”) covering some current and some former key executives and directors. The SERP is an unfunded, nonqualified defined benefit plan. The combined number of active and retired/terminated participants in the SERP was 53 at December 31, 2020. The defined benefit represents a stated amount for key executives and directors that generally vests over nine years and is reduced for early retirement. The projected benefit obligation is included in “Accrued interest payable and other liabilities” on the consolidated balance sheets. The SERP has no assets and the projected benefit obligation is unfunded. The measurement date of the SERP is December 31. The following table sets forth the SERP’s status at December 31: 2020 2019 (Dollars in thousands) Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 33,689 $ 26,781 Projected benefit obligation of SERP agreements acquired from Presidio — 2,541 Service cost 492 263 Actuarial loss (gain) 3,008 4,182 Interest cost 935 1,059 Benefits paid (3,118) (1,137) Plan amendment 398 — Projected benefit obligation at end of year $ 35,404 $ 33,689 Amounts recognized in accumulated other comprehensive loss: Net actuarial loss $ 12,445 $ 9,714 Weighted-average assumptions used to determine the benefit obligation at year-end: 2020 2019 Discount rate 2.26 % 3.01 % Rate of compensation increase N/A N/A Estimated benefit payments over the next ten years, which reflect anticipated future events, service and other assumptions, are as follows: Estimated Benefit Year Payments (Dollars in thousands) 2021 $ 2,123 2022 1,814 2023 1,918 2024 1,954 2025 2,026 2026 to 2030 11,465 The components of pension cost for the SERP follow: 2020 2019 (Dollars in thousands) Components of net periodic benefit cost: Service cost $ 492 $ 263 Interest cost 935 1,059 Amortization of prior transition obligation 299 — Amortization of net actuarial loss 387 184 Accelerated benefits for Presidio SERP agreements due to change in control — 1,465 Net periodic benefit cost $ 2,113 $ 2,971 Amount recognized in other comprehensive income $ 1,924 $ 2,847 The components of net periodic benefit cost other than the service cost component are included in the line item “other noninterest expense” in the Consolidated Statements of Income. The estimated net actuarial loss and prior service cost for the SERP that will be amortized from Accumulated Other Comprehensive Loss into net periodic benefit cost over the next fiscal year are $643,000 as of December 31, 2020. Net periodic benefit cost for the years ended December 31, 2020 and 2019 were determined using the following assumption: 2020 2019 Discount rate 3.01 % 4.03 % Rate of compensation increase N/A N/A Split-Dollar Life Insurance Benefit Plan The Company maintains life insurance policies for some current and some former directors and officers that are subject to split-dollar life insurance agreements, some of which continues after the participant’s employment and retirement. The policies acquired from Focus and Presidio do not include a post retirement benefit. All participants are fully vested in their split-dollar life insurance benefits. The accrued benefit liability for the split-dollar insurance agreements represents either the present value of the future death benefits payable to the participants’ beneficiaries or the present value of the estimated cost to maintain life insurance, depending on the contractual terms of the participant’s underlying agreement. The split-dollar life insurance projected benefit obligation is included in “Accrued interest payable and other liabilities” on the consolidated balance sheets. The measurement date of the split-dollar life insurance benefit plan is December 31. The following sets forth the funded status of the split dollar life insurance benefits: December 31, December 31, 2020 2019 (Dollars in thousands) Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 8,198 $ 6,903 Interest cost 246 278 Actuarial loss (gain) 1,245 1,017 Projected benefit obligation at end of period $ 9,689 $ 8,198 Amounts recognized in accumulated other comprehensive loss at December 31 consist of: December 31, December 31, 2020 2019 (Dollars in thousands) Net actuarial loss $ 5,170 $ 3,776 Prior transition obligation 970 1,059 Accumulated other comprehensive loss $ 6,140 $ 4,835 Weighted-average assumption used to determine the benefit obligation at year-end follow: 2020 2019 Discount rate 2.26 % 3.01 % Components of net periodic benefit cost during the year are: 2020 2019 (Dollars in thousands) Amortization of prior transition obligation and actuarial losses $ (60) $ (96) Interest cost 246 278 Net periodic benefit cost $ 186 $ 182 Amount recognized in other comprehensive income $ 1,305 $ 1,113 The estimated net actuarial loss and prior transition obligation for the split-dollar life insurance benefit plan that will be amortized from accumulated other comprehensive loss into net periodic benefit cost over the next fiscal year are $90,000 as of December 31, 2020 and 2019. Weighted-average assumption used to determine the net periodic benefit cost: 2020 2019 Discount rate 3.01 % 4.03 %

Fair Value

Fair Value	12 Months Ended
Fair Value	Dec. 31, 2020
Fair Value
Fair Value	15) Fair Value Accounting guidance establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data (for example, interest rates and yield curves observable at commonly quoted intervals, prepayment speeds, credit risks, and default rates). Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Financial Assets and Liabilities Measured on a Recurring Basis The fair values of securities available-for-sale are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs) or matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities, but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs). The Company uses matrix pricing (Level 2 inputs) to establish the fair value of its securities available-for-sale. The fair value of interest-only (“I/O”) strip receivable assets is based on a valuation model used by a third party. The Company is able to compare the valuation model inputs and results to widely available published industry data for reasonableness (Level 2 inputs). Fair Value Measurements Using Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Balance (Level 1) (Level 2) (Level 3) (Dollars in thousands) Assets at December 31, 2020 Available-for-sale securities: Agency mortgage-backed securities $ 175,326 — $ 175,326 — U.S. Treasury 60,448 60,448 — — I/O strip receivables 305 — 305 — Assets at December 31, 2019 Available-for-sale securities: Agency mortgage-backed securities $ 284,361 — $ 284,361 — U.S. Treasury 120,464 120,464 — — I/O strip receivables 503 — 503 — Assets and Liabilities Measured on a Non-Recurring Basis The fair value of collateral dependent loans individually evaluated with specific allocations of the allowance for credit losses on loans is generally based on recent real estate appraisals. The appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Assets carried at fair value on a non-recurring basis are immaterial. Foreclosed assets are valued at the time the loan is foreclosed upon and the asset is transferred to foreclosed assets. The fair value is based primarily on third party appraisals, less costs to sell. The appraisals may utilize a single valuation approach or a combination of approaches including the comparable sales and income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are typically significant and result in a Level 3 classification of the inputs for determining fair value. At December 31, 2020 and December 31, 2019, there were no foreclosed assets on the balance sheet. The carrying amounts and estimated fair values of financial instruments at December 31, 2020 are as follows: Estimated Fair Value Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs Amounts (Level 1) (Level 2) (Level 3) Total (Dollars in thousands) Assets: Cash and cash equivalents $ 1,131,073 $ 1,131,073 $ — $ — $ 1,131,073 Securities available-for-sale 235,774 60,448 175,326 — 235,774 Securities held-to-maturity 297,389 — 304,927 — 304,927 Loans (including loans held-for-sale), net 2,576,560 — 1,699 2,572,993 2,574,692 FHLB stock, FRB stock, and other investments 33,522 — — — N/A Accrued interest receivable 10,546 309 1,512 8,725 10,546 I/O strips receivables 305 — 305 — 305 Liabilities: Time deposits $ 153,407 $ — $ 153,740 $ — $ 153,740 Other deposits 3,761,079 — 3,761,079 — 3,761,079 Subordinated debt 39,740 — 40,340 — 40,340 Accrued interest payable 545 — 545 — 545 The carrying amounts and estimated fair values of financial instruments at December 31, 2019 are as follows: ` Estimated Fair Value Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs Amounts (Level 1) (Level 2) (Level 3) Total (Dollars in thousands) Assets: Cash and cash equivalents $ 457,370 $ 457,370 $ — $ — $ 457,370 Securities available-for-sale 404,825 120,464 284,361 — 404,825 Securities held-to-maturity 366,560 — 368,107 — 368,107 Loans (including loans held-for-sale), net 2,511,611 — 1,052 2,512,277 2,513,329 FHLB stock, FRB stock, and other investments 29,842 — — — N/A Accrued interest receivable 10,915 446 2,218 8,251 10,915 I/O strips receivables 503 — 503 — 503 Liabilities: Time deposits $ 168,034 $ — $ 158,704 $ — $ 158,704 Other deposits 3,246,734 — 3,246,734 — 3,246,734 Subordinated debt 39,554 — 40,404 — 40,404 Accrued interest payable 707 — 707 — 707

Commitments and Loss Contingenc

Commitments and Loss Contingencies	12 Months Ended
Commitments and Loss Contingencies	Dec. 31, 2020
Commitments and Loss Contingencies
Commitments and Loss Contingencies	16) Commitments and Contingencies Loss Contingencies Within the ordinary course of our business, we are subject to private lawsuits, government audits, administrative proceedings and other claims. A number of these claims may exist at any given time, and some of the claims may be pled as class actions. We could be affected by adverse publicity and litigation costs resulting from such allegations, regardless of whether they are valid or whether we are legally determined to be liable. The Company had the following outstanding matters as of February 25, 2021. ● In December 2020, Solar Eclipse Investment Fund III, et al v. Heritage Bank of Commerce, et al., was filed against Heritage, and others, in the Solano County Superior Court for the State of California (“Solar Eclipse”). Also in December 2020, Solarmore Management Services, Inc. v. Jeff Carpoff et al., (“Solarmore”) filed an amended complaint in the United States District Court for the Eastern District of California against Heritage and others. Both of these cases relate to our former deposit relationships with D.C. Solar and their affiliates (collectively “D.C. Solar”) and its sponsored investment funds. D.C. Solar is a former customer that allegedly perpetrated a Ponzi scheme and declared bankruptcy. These actions seek unspecified damages and are in an early phase. We intend to vigorously defend these actions. ● In re Double Jump, Inc. is pending in the United States Bankruptcy Court of Nevada and was filed by D.C. Solar and some of its affiliated entities. One of the chapter 7 trustees has indicated that it may bring an adversary action against Heritage related to our former deposit relationships with D.C. Solar and its sponsored investment funds. The parties have agreed to attend a pre-filing mediation. ● In November 2020, a present and a former bank employee purporting to represent a class of Bank employees, have alleged in a lawsuit that the Bank violated the California Labor Code and California Business and Professions Code, by failing to permit required meal and rest breaks, and failing to provide accurate wage statements, among other claims. The lawsuit seeks unspecified penalties under the California Private Attorneys General Act (“PAGA”) in addition to other monetary payments. The case is in the early phase. In February 2021, the Bank was notified of another set of PAGA and potential class claims alleged by letter to the California Labor and Workforce Development Agency transmitted on behalf of another former Bank employee. The notice to the California Labor and Workforce Development Agency, which is a prerequisite to a PAGA filing, alleged the same claims, class, and relief requested that are the subject of the lawsuit filed in November 2020, and disclosed no new claims. We intend to vigorously defend the filed class and PAGA complaint and any subsequent related class action and PAGA filing. The Company makes a provision for a liability relating to legal matters when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, estimated settlements, legal rulings, advice of legal counsel and other information and events pertaining to a particular matter. The outcomes of legal proceedings and other contingencies are, however, inherently unpredictable and subject to significant uncertainties. As a result, the Company is not able to reasonably estimate the amount or range of possible losses, including losses that could arise as a result of application of non-monetary remedies, with respect to the contingencies it faces, and the Company’s estimates may not prove to be accurate. At this time, we believe that the amount of reasonably possible losses resulting from final disposition of any pending lawsuits, audits, proceedings and claims will not have a material adverse effect individually or in the aggregate on our financial position, results of operations or liquidity. It is possible, however, that our future results of operations for a particular quarter or fiscal year could be impacted by changes in circumstances relating to lawsuits, audits, proceedings or claims. Legal costs related to such claims are expensed as incurred. Off-Balance Sheet Arrangements In the normal course of business the Company makes commitments to extend credit to its customers as long as there are no violations of any conditions established in the contractual arrangements. These commitments are obligations that represent a potential credit risk to the Company, but are not reflected on the Company’s consolidated balance sheets. Total unused commitments to extend credit were $1,114,193,000 at December 31, 2020, compared to $1,120,638,000 at December 31, 2019. Unused commitments represented 42% outstanding gross loans at December 31, 2020, and 44% at December 31, 2019. The effect on the Company’s revenues, expenses, cash flows and liquidity from the unused portion of the commitments to provide credit cannot be reasonably predicted because there is no certainty that lines of credit and letters of credit will ever be fully utilized. The following table presents the Company’s commitments to extend credit for the periods indicated: December 31, 2020 2019 Fixed Variable Fixed Variable Rate Rate Total Rate Rate Total (Dollars in thousands) Unused lines of credit and commitments to make loans $ 121,560 $ 970,614 $ 1,092,174 $ 147,372 $ 951,206 $ 1,098,578 Standby letters of credit 3,049 18,970 22,019 11,445 10,615 22,060 $ 124,609 $ 989,584 $ 1,114,193 $ 158,817 $ 961,821 $ 1,120,638 For the year ended December 31, 2020, there was an increase of $192,000 to the allowance for credit losses on loans for the Company’s off-balance sheet credit exposures, compared to the year ended December 31, 2019. The allowance for losses for the Company’s off-balance sheet credit exposures was $1,078,000 at December 31, 2020. As of the implementation date, there was a reduction of $207,000 to allowance for credit losses on loans recorded for the Company’s off-balance sheet credit exposures. The offsetting increase of $399,000 in 2020 in the allowance for credit losses on loans for off-balance sheet credit exposures was driven by increased loss factors in the CECL model for all loan segments with off-balance sheet exposures which resulted from deterioration in the economic forecast assumptions used in the CECL model.

Shareholders' Equity and Earnin

Shareholders' Equity and Earnings Per Share	12 Months Ended
Shareholders' Equity and Earnings Per Share	Dec. 31, 2020
Equity
Shareholders' Equity and Earnings Per Share	17) Shareholders’ Equity and Earnings Per Share Authorized Shares of Common Stock Earnings Per Share Year Ended December 31, 2020 2019 2018 (Dollars in thousands, except per share amounts) Net income $ 35,299 $ 40,461 $ $ 35,331 Weighted average common shares outstanding for basic earnings per common share 59,478,343 46,684,384 41,469,211 Dilutive potential common shares 690,796 1,221,845 713,728 Shares used in computing diluted earnings per common share 60,169,139 47,906,229 42,182,939 Basic earnings per share $ 0.59 $ 0.87 $ 0.85 Diluted earnings per share $ 0.59 $ 0.84 $ 0.84

Capital Requirements

Capital Requirements	12 Months Ended
Capital Requirements	Dec. 31, 2020
Capital Requirements
Capital Requirements	18) Capital Requirements The Company and its subsidiary bank are subject to various regulatory capital requirements administered by the banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory—and possibly additional discretionary—actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements and operations. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and HBC must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off balance sheet items as calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. There are no conditions or events since December 31, 2020, that management believes have changed the categorization of the Company or HBC as “well-capitalized.” The Company’s consolidated capital ratios and the HBC’s capital ratios exceeded the regulatory guidelines for a well-capitalized financial institution under the Basel III regulatory requirements at December 31, 2020. As permitted by the interim final rule issued on March 27, 2020 by our federal regulatory agency, we elected the option to delay the estimated impact of the adoption of the CECL Standard in our regulatory capital for two years. This two-year delay is in addition to the three-year transition period the agency had already made available. The adoption will delay the effects of CECL on our regulatory capital for the next two years, after which the effects will be phased-in over a three-year period from January 1, 2022 through December 31, 2024. Under the interim final rule, the amount of adjustments to regulatory capital deferred until the phase-in period include both the initial impact of adoption of the CECL Standard at January 1, 2020 and 25% of subsequent changes in our allowance for credit losses during each quarter of the two-year period ending December 31, 2021. Quantitative measures established by regulation to help ensure capital adequacy require the Company and HBC to maintain minimum amounts and ratios (set forth in the tables below) of total, Tier 1 capital, and common equity Tier 1 capital (as defined in the regulations) to risk weighted assets (as defined), and of Tier 1 capital to average assets (as defined). Management believes that, as of December 31, 2020 and December 31, 2019, the Company and HBC met all capital adequacy guidelines to which they were subject. The Company’s consolidated capital amounts and ratios are presented in the following table, together with capital adequacy requirements, under the Basel III regulatory requirements as of December 31, 2020, and December 31, 2019. Required For Capital Adequacy Purposes Actual Under Basel III Amount Ratio Amount Ratio (1) (Dollars in thousands) As of December 31, 2020 Total Capital $ 483,870 16.5 % $ 307,067 10.5 % (to risk-weighted assets) Tier 1 Capital $ 410,307 14.0 % $ 248,578 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 410,307 14.0 % $ 204,711 7.0 % (to risk-weighted assets) Tier 1 Capital $ 410,307 9.1 % $ 180,281 4.0 % (to average assets) (1) Includes 2.5% capital conservation buffer, except the Tier 1 Capital to average assets ratio. Required For Capital Adequacy Purposes Actual Under Basel III Amount Ratio Amount Ratio (1) (Dollars in thousands) As of December 31, 2019 Total Capital $ 457,158 14.6 % $ 329,306 10.5 % (to risk-weighted assets) Tier 1 Capital $ 393,432 12.5 % $ 266,581 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 393,432 12.5 % $ 219,538 7.0 % (to risk-weighted assets) Tier 1 Capital $ 393,432 9.7 % $ 161,677 4.0 % (to average assets) (1) Includes 2.5% capital conservation buffer, except the Tier 1 Capital to average assets ratio. Required For Capital To Be Well-Capitalized Adequacy Under Basel III PCA Regulatory Purposes Actual Requirements Under Basel III Amount Ratio Amount Ratio Amount Ratio (1) (Dollars in thousands) As of December 31, 2020 Total Capital $ 461,933 15.8 % $ 292,258 10.0 % $ 306,871 10.5 % (to risk-weighted assets) Tier 1 Capital $ 428,109 14.6 % $ 233,806 8.0 % $ 248,419 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 428,109 14.6 % $ 189,968 6.5 % $ 204,580 7.0 % (to risk-weighted assets) Tier 1 Capital $ 428,109 9.5 % $ 225,263 5.0 % $ 180,211 4.0 % (to average assets) (1) Includes 2.5% capital conservation buffer, except the Tier 1 Capital to average assets ratio. Required For Capital To Be Well-Capitalized Adequacy Under Basel III PCA Regulatory Purposes Actual Requirements Under Basel III Amount Ratio Amount Ratio Amount Ratio (1) (Dollars in thousands) As of December 31, 2019 Total Capital $ 435,757 13.9 % $ 313,485 10.0 % $ 329,159 10.5 % (to risk-weighted assets) Tier 1 Capital $ 411,585 13.1 % $ 250,788 8.0 % $ 266,462 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 411,585 13.1 % $ 203,765 6.5 % $ 219,439 7.0 % (to risk-weighted assets) Tier 1 Capital $ 411,585 10.2 % $ 202,013 5.0 % $ 161,611 4.0 % (to average assets) (1) Includes 2.5% capital conservation buffer, except the Tier 1 Capital to average assets. The Subordinated Debt, net of unamortized issuance costs, totaled $39,740,000 at December 31, 2020, and qualifies as Tier 2 capital for the Company under the guidelines established by the Federal Reserve Bank. Under California General Corporation Law, the holders of common stock are entitled to receive dividends when and as declared by the Board of Directors, out of funds legally available. The California Financial Code provides that a state licensed bank may not make a cash distribution to its shareholders in excess of the lesser of the following: (i) the bank’s retained earnings; or (ii) the bank’s net income for its last three fiscal years, less the amount of any distributions made by the bank to its shareholders during such period. However, a bank, with the prior approval of the Commissioner of the California Department of Business Oversight—Division of Financial Institutions (“DBO”) may make a distribution to its shareholders of an amount not to exceed the greater of (i) a bank’s retained earnings; (ii) its net income for its last fiscal year; or (iii) its net income for the current fiscal year. Also with the prior approval of the Commissioner of the DBO and the shareholders of the bank, the bank may make a distribution to its shareholders, as a reduction in capital of the bank. In the event that the Commissioner determines that the shareholders’ equity of a bank is inadequate or that the making of a distribution by a bank would be unsafe or unsound, the Commissioner may order a bank to refrain from making such a proposed distribution. As of December 31, 2020, HBC would not be required to obtain regulatory approval, and the amount available for cash dividends is $21,996,000. Similar restrictions applied to the amount and sum of loan advances and other transfers of funds from HBC to the parent company. HBC distributed to HCC dividends of $32,000,000 and $22,500,000 for the years ended December 31, 2020 and 2019, respectively.

Revenue Recognition

Revenue Recognition	12 Months Ended
Revenue Recognition	Dec. 31, 2020
Revenue Recognition
Revenue Recognition	19) Revenue Recognition On January 1, 2018, the Company adopted ASU No. 2014-09 (Topic 606) Service charges and fees on deposit accounts consist of account analysis fees (i.e., net fees earned on analyzed business and public checking accounts), monthly service fees, check orders, and other deposit account related fees. We sometimes charge customers fees that are not specifically related to the customer accessing its funds, such as account maintenance or dormancy fees. The amount of deposit fees assessed varies based on a number of factors, such as the type of customer and account, the quantity of transactions, and the size of the deposit balance. We charge, and in some circumstances do not charge, fees to earn additional revenue and influence certain customer behavior. An example would be where we do not charge a monthly service fee, or do not charge for certain transactions, for customers that have a high deposit balance. Deposit fees are considered either transactional in nature (such as wire transfers, nonsufficient fund fees, and stop payment orders) or non-transactional (such as account maintenance and dormancy fees). These fees are recognized as earned or as transactions occur and services are provided. Check orders and other deposit account related fees are largely transactional based and, therefore, the Company’s performance obligation is satisfied, and related revenue recognized, at a point in time. Payment for service charges on deposit accounts is primarily received immediately or in the following month through a direct charge to customers’ accounts. The Company currently accounts for sales of foreclosed assets in accordance with Topic 360-20. In most cases the Company will seek to engage a real estate agent for the sale of foreclosed assets immediately upon foreclosure. However, in some cases, where there is clear demand for the property in question, the Company may elect to allow for a marketing period on no more than six months to attempt a direct sale of the property. We generally recognize the sale, and any associated gain or loss, of a real estate property when control of the property transfers. Any gains or losses from the sale are recorded to noninterest income/expense. The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the periods indicated: Year Ended December 31, 2020 2019 2018 (Dollars in thousands) Noninterest Income In-scope of Topic 606: Service charges and fees on deposit accounts $ 2,859 $ 4,510 $ 4,113 Gain on the disposition of foreclosed assets 791 — — Total noninterest income in-scope of Topic 606 3,650 4,510 4,113 Noninterest Income Out-of-scope of Topic 606 6,272 5,734 5,461 Total noninterest income $ 9,922 $ 10,244 $ 9,574

Noninterest Expense

Noninterest Expense	12 Months Ended
Noninterest Expense	Dec. 31, 2020
Noninterest Expense
Noninterest Expense	20) Noninterest Expense The following table indicates the various components of the Company’s noninterest expense in each category for the periods indicated: Year Ended December 31, 2020 2019 2018 (Dollars in thousands) Salaries and employee benefits $ 50,927 $ 50,754 $ 43,762 Occupancy and equipment 8,018 6,647 5,411 Professional fees 5,338 3,259 1,969 Amortization of intangible assets 3,751 2,739 1,943 Software subscriptions 3,102 2,397 2,343 Data processing 2,770 2,890 1,978 Insurance expense 2,286 1,864 1,685 Supplemental retirement plan cost 1,724 1,240 202 Other 11,595 13,108 16,228 Total noninterest expense $ 89,511 $ 84,898 $ 75,521 The following table presents the merger-related costs by category for the periods indicated: For the Year Ended December 31, December 31, December 31, 2020 2019 2018 (Dollars in thousands) Salaries and employee benefits $ 356 $ 6,580 $ 3,569 Other 2,245 4,500 5,598 Total merger-related costs $ 2,601 $ 11,080 $ 9,167

Business Segment Information

Business Segment Information	12 Months Ended
Business Segment Information	Dec. 31, 2020
Business Segment Information
Business Segment Information	21) Business Segment Information The following presents the Company’s operating segments. The Company operates through two business segments: Banking segment and Factoring segment. Transactions between segments consist primarily of borrowed funds. Intersegment interest expense is allocated to the Factoring segment based on the Company’s prime rate and funding costs. The provision for loan loss is allocated based on the segment’s allowance for loan loss determination which considers the effects of charge-offs. Noninterest income and expense directly attributable to a segment are assigned to it. Taxes are paid on a consolidated basis and allocated for segment purposes. The Factoring segment includes only factoring originated by Bay View Funding. Year Ended December 31, 2020 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 139,744 $ 10,727 $ 150,471 Intersegment interest allocations 923 (923) — Total interest expense 8,581 — 8,581 Net interest income 132,086 9,804 141,890 Provision for credit losses on loans 12,928 305 13,233 Net interest income after provision 119,158 9,499 128,657 Noninterest income 9,277 645 9,922 Noninterest expense (2) 83,149 6,362 89,511 Intersegment expense allocations 404 (404) — Income before income taxes 45,690 3,378 49,068 Income tax expense 12,770 999 13,769 Net income $ 32,920 $ 2,379 $ 35,299 Total assets $ 4,567,239 $ 66,875 $ 4,634,114 Loans, net of deferred fees $ 2,572,060 $ 47,201 $ 2,619,261 Goodwill $ 154,587 $ 13,044 $ 167,631 (1) Includes the holding company’s results of operations. (2) The banking segment’s noninterest expense includes merger-related costs of $2,601,000. Year Ended December 31, 2019 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 130,971 $ 11,688 $ 142,659 Intersegment interest allocations 1,182 (1,182) — Total interest expense 10,847 — 10,847 Net interest income 121,306 10,506 131,812 Provision for loan losses 517 329 846 Net interest income after provision 120,789 10,177 130,966 Noninterest income 9,643 601 10,244 Noninterest expense (2) 78,159 6,739 84,898 Intersegment expense allocations 547 (547) — Income before income taxes 52,820 3,492 56,312 Income tax expense 14,819 1,032 15,851 Net income $ 38,001 $ 2,460 $ 40,461 Total assets $ 4,045,801 $ 63,662 $ 4,109,463 Loans, net of deferred fees $ 2,487,864 $ 45,980 $ 2,533,844 Goodwill $ 154,376 $ 13,044 $ 167,420 (1) Includes the holding company’s results of operations. (2) The banking segment’s noninterest expense includes merger-related costs of $11,080,000. Year Ended December 31, 2018 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 115,147 $ 14,698 $ 129,845 Intersegment interest allocations 1,856 (1,856) — Total interest expense 7,822 — 7,822 Net interest income 109,181 12,842 122,023 Provision for loan losses 7,224 197 7,421 Net interest income after provision 101,957 12,645 114,602 Noninterest income 8,662 912 9,574 Noninterest expense (2) 69,164 6,357 75,521 Intersegment expense allocations 753 (753) — Income before income taxes 42,208 6,447 48,655 Income tax expense 11,418 1,906 13,324 Net income $ 30,790 $ 4,541 $ 35,331 Total assets $ 3,028,721 $ 67,841 $ 3,096,562 Loans, net of deferred fees $ 1,832,815 $ 53,590 $ 1,886,405 Goodwill $ 70,709 $ 13,044 $ 83,753 (1) Includes the holding company’s results of operations. (2) The banking segment’s noninterest expense includes merger-related costs of $9,167,000.

Parent Company only Condensed F

Parent Company only Condensed Financial Information	12 Months Ended
Parent Company only Condensed Financial Information	Dec. 31, 2020
Parent Company only Condensed Financial Information
Parent Company only Condensed Financial Information	22) Parent Company only Condensed Financial Information The condensed financial statements of Heritage Commerce Corp (parent company only) are as follows: Condensed Balance Sheets December 31, 2020 2019 (Dollars in thousands) Assets Cash and cash equivalents $ 20,378 $ 20,260 Investment in subsidiary bank 595,681 594,868 Other assets 1,881 1,761 Total assets $ 617,940 $ 616,889 Liabilities and Shareholders' Equity Subordinated debt, net of issuance costs $ 39,740 $ 39,554 Other liabilities 311 627 Shareholders' equity 577,889 576,708 Total liabilities and shareholders' equity $ 617,940 $ 616,889 Condensed Statements of Operations Year Ended December 31, 2020 2019 2018 (Dollars in thousands) Dividend from subsidiary bank $ 32,000 $ 22,500 $ 17,000 Other income — 121 — Interest expense (2,321) (2,314) (2,315) Other expenses (3,263) (3,084) (3,030) Income before income taxes and equity in net income of subsidiary bank 26,416 17,223 11,655 Equity in undistributed net income of subsidiary bank 7,255 21,757 22,161 Income tax benefit 1,628 1,481 1,515 Net income $ 35,299 $ 40,461 $ 35,331 Condensed Statements of Cash Flows Year Ended December 31, 2020 2019 2018 (Dollars in thousands) Cash flows from operating activities: Net Income $ 35,299 $ 40,461 $ 35,331 Adjustments to reconcile net income to net cash provided by operations: Amortization of restricted stock awards, net 1,689 1,283 1,109 Equity in undistributed net income of subsidiary bank (7,255) (21,757) (22,161) Net change in other assets and liabilities (250) 12 (64) Net cash provided by operating activities 29,483 19,999 14,215 Cash flows from financing activities: Payment of cash dividends (31,079) (22,723) (18,464) Proceeds from exercise of stock options 1,714 1,626 2,667 Net cash provided by (used in) financing activities (29,365) (21,097) (15,797) Net increase (decrease) in cash and cash equivalents 118 (1,098) (1,582) Cash and cash equivalents, beginning of year 20,260 21,358 22,940 Cash and cash equivalents, end of year $ 20,378 $ 20,260 $ 21,358

Quarterly Financial Data (Unaud

Quarterly Financial Data (Unaudited)	12 Months Ended
Quarterly Financial Data (Unaudited)	Dec. 31, 2020
Quarterly Financial Data (Unaudited)
Quarterly Financial Data (Unaudited)	23) Quarterly Financial Data (Unaudited) The following table discloses the Company’s selected unaudited quarterly financial data: Quarter Ended 12/31/2020 9/30/2020 6/30/2020 3/31/2020 (Dollars in thousands, except per share amounts) Interest income $ 36,145 $ 36,252 $ 37,132 $ 40,942 Interest expense 1,940 2,087 2,192 2,362 Net interest income 34,205 34,165 34,940 38,580 Provision (recapture) for credit losses on loans (1,348) 197 1,114 13,270 Net interest income after provision for credit losses on loans 35,553 33,968 33,826 25,310 Noninterest income 2,056 2,595 2,078 3,193 Noninterest expense (1) 21,557 21,168 21,012 25,774 Income before income taxes 16,052 15,395 14,892 2,729 Income tax expense 4,429 4,198 4,274 868 Net income $ 11,623 $ 11,197 $ 10,618 $ 1,861 Earnings per common share Basic $ 0.19 $ 0.19 $ 0.18 $ 0.03 Diluted $ 0.19 $ 0.19 $ 0.18 $ 0.03 (1) Includes $101,000, $17,000, $59,000, and $2,424,000 pre-tax acquisition costs in the fourth, third, second and first quarters of 2020, respectively, related to the Presidio merger. Quarter Ended 12/31/2019 9/30/2019 6/30/2019 3/31/2019 (Dollars in thousands, except per share amounts) Interest income $ 42,471 $ 33,250 $ 33,489 $ 33,449 Interest expense 3,242 2,625 2,573 2,407 Net interest income 39,229 30,625 30,916 31,042 Provision (credit) for loan losses 3,223 (576) (740) (1,061) Net interest income after provision for loan losses 36,006 31,201 31,656 32,103 Noninterest income 2,393 2,618 2,765 2,468 Noninterest expense (1) 30,626 17,909 18,445 17,918 Income before income taxes 7,773 15,910 15,976 16,653 Income tax expense 2,088 4,633 4,623 4,507 Net income $ 5,685 $ 11,277 $ 11,353 $ 12,146 Earnings per common share Basic $ 0.10 $ 0.26 $ 0.26 $ 0.28 Diluted $ 0.10 $ 0.26 $ 0.26 $ 0.28 (1) Includes $9,879,000, $661,000, and $540,000 pre-tax acquisition costs in the fourth, third, and second quarters of 2019, respectively, related to the Presidio merger.

Subsequent Events

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2020
Subsequent Events
Subsequent Events	24) Subsequent Events On January 28, 2021, the Company announced that its Board of Directors declared a $0.13 per share quarterly cash dividend to holders of common stock. The dividend will be paid on February 26, 2021 to shareholders of record on February 12, 2021.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
Summary of Significant Accounting Policies (Policies)	Dec. 31, 2020
Summary of Significant Accounting Policies
Description of Business and Basis of Presentation	Description of Business and Basis of Presentation Heritage Commerce Corp (“HCC”) operates as a registered bank holding company for its wholly-owned subsidiary Heritage Bank of Commerce (“HBC” or the “Bank”), collectively referred to as the “Company”. HBC was incorporated on November 23, 1993 and commenced operations on June 8, 1994. HBC is a California state chartered bank which offers a full range of commercial and personal banking services to residents and the business/professional community in Alameda, Contra Costa, Marin, San Benito, San Francisco, San Mateo, and Santa Clara counties of California. CSNK Working Capital Finance Corp. a California corporation, dba Bay View Funding (“Bay View Funding”) is a wholly owned subsidiary of HBC. Bay View Funding’s primary business operation is purchasing and collecting factored receivables. Factored receivables are receivables that have been transferred by the originating organization and typically have not been subject to previous collection efforts. In a factoring transaction Bay View Funding directly purchases the receivables generated by its clients at a discount to their face value. The transactions are structured to provide the clients with immediate working capital when there is a mismatch between payments to the client for a good and service and the payment of operating costs incurred to provide such good or service. The Company acquired Tri-Valley Bank (“Tri-Valley”) on April 6, 2018. Tri-Valley was merged with HBC, with HBC as the surviving bank. Tri-Valley’s results of operations have been included in the Company’s results of operations beginning April 7, 2018. The Company acquired United American Bank (“United American”) on May 4, 2018. United American was merged with HBC, with HBC as the surviving bank. United American’s results of operations have been included in the Company’s results of operations beginning May 5, 2018. The Company acquired Presidio Bank (“Presidio”) on October 11, 2019. Presidio was merged with HBC, with HBC as the surviving bank. Presidio’s results of operations have been included in the Company’s results of operations beginning October 12, 2019. The consolidated financial statements are prepared in accordance with accounting policies generally accepted in the United States of America and general practices in the banking industry. The financial statements include the accounts of the Company. All inter-company accounts and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents include cash on hand, amounts due from banks, amounts held at the Federal Reserve Bank, and Federal funds sold. The Company is required to maintain reserves against certain of the deposit accounts with the Federal Reserve Bank. Federal funds are generally sold and purchased for one
Cash Flows	Cash Flows Net cash flows are reported for customer loan and deposit transactions, notes payable, repurchase agreements and other short-term borrowings.
Securities	Securities The Company classifies its securities as either available-for-sale or held-to-maturity at the time of purchase. Debt securities are classified as held-to-maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Debt securities not classified as held-to-maturity are classified as available-for-sale. Securities available-for-sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of taxes. Interest income includes amortization of purchase premiums or discounts. Premiums and discounts are amortized, or accreted, over the life of the related security, or the earliest call date for callable securities, as an adjustment to income using a method that approximates the interest method. Realized gains and losses are recorded on the trade date and determined using the specific identification method for the cost of securities sold.
Allowance for Credit Losses - Available-for-sale Securities	Allowance for Credit Losses – Available-for-sale Securities Allowance for Credit Losses – Held-to-Maturity Securities Management measures expected credit losses on held-to-maturity debt securities on a collective basis by major security type and bond rating. The estimate of expected credit losses considers historical loss information that is adjusted for current conditions and reasonable and supportable forecasts. Management classifies the held-to-maturity portfolio in the following major security types: Agency mortgage-backed and Municipals. All the mortgage backed securities held by the Company are issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies, and have a long history of no credit losses. Other securities are comprised primarily of tax exempt municipal securities. At December 31, 2020, these securities are primarily rated A-Aaa (defined as investment grade), with a small portion of the portfolio rated Baa2 (defined as medium grade). The issuers in these securities are primarily municipal entities and school districts. Changes in the allowance for credit losses are recorded as a provision (or reversal of) credit loss expense. Losses are charged against the allowance when management believes the uncollectibility of an available-for-sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met.
Loan Sales and Servicing	Loan Sales and Servicing The Company holds for sale the conditionally guaranteed portion of certain loans guaranteed by the Small Business Administration or the U.S. Department of Agriculture (collectively referred to as “SBA loans”). These loans are carried at the lower of aggregate cost or fair value. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings. Gains or losses on SBA loans held-for-sale are recognized upon completion of the sale, based on the difference between the selling price and the carrying value of the related loan sold. SBA loans are sold with servicing retained. Servicing assets recognized separately upon the sale of SBA loans consist of servicing rights and, for loans sold prior to 2009, interest-only strip receivables (“I/O strips”). The Company accounts for the sale and servicing of SBA loans based on the financial and servicing assets it controls and liabilities it has incurred, reversing recognition of financial assets when control has been surrendered, and reversing recognition of liabilities when extinguished. Servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sale of loans. Servicing rights are amortized in proportion to and over the period of net servicing income and are assessed for impairment on an ongoing basis. Impairment is determined by stratifying the servicing rights based on interest rates and terms. Any servicing assets in excess of the contractually specified servicing fees are reclassified at fair value as an I/O strip receivable and treated like an available for sale security. Fair value is determined using prices for similar assets with similar characteristics, when available, or based upon discounted cash flows using market-based assumptions. Impairment is recognized through a valuation allowance. The servicing rights, net of any required valuation allowance, and I/O strip receivable are included in other assets on the consolidated balance sheets. Servicing income, net of amortization of servicing rights, is recognized as noninterest income. The initial fair value of I/O strip receivables is amortized against interest income on loans.
Loans	Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at the principal amount outstanding, net of deferred loan origination fees and costs on originated loans, or unamortized premiums or discounts on purchased or acquired loans, and an allowance for credit losses on loans. Accrued interest receivable is excluded from the estimate of credit losses. Interest on loans is accrued on the unpaid principal balance and is credited to income using the effective yield interest method. Interest on purchased or acquired loans and the accretion (amortization) of the related purchase discount (premium) is also credited to income using the effective yield interest method. A loan portfolio segment is defined as the level at which the Company uses a systematic methodology to determine the allowance for credit losses on loans. A loan portfolio class is defined as a group of loans having similar risk characteristics and methods for monitoring and assessing risk. For all loan classes, when a loan is classified as nonaccrual, the accrual of interest is discontinued, any accrued and unpaid interest is reversed, and the amortization of deferred loan fees and costs is discontinued. For all loan classes, loans are classified as nonaccrual when the payment of principal or interest is 90 days past due, unless the loan is well secured and in the process of collection. Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for credit loss and individually evaluated loans. In certain circumstances, loans that are under 90 days past due may also be classified as nonaccrual. Any interest or principal payments received on nonaccrual loans are applied toward reduction of principal. Nonaccrual loans generally are not returned to performing status until the obligation is brought current, the loan has performed in accordance with the contract terms for a reasonable period of time, and the ultimate collectability of the contractual principal and interest is no longer in doubt. Non-refundable loan fees and direct origination costs are deferred and recognized over the expected lives of the related loans using the effective yield interest method.
Allowance for Credit Losses on Loans	Allowance for Credit Losses on Loans The allowance for credit losses on loans is an estimate of the current expected credit losses in the loan portfolio. Loans are charged-off against the allowance when management determines that a loan balance has become uncollectible. Subsequent recoveries, if any, are credited to the allowance for credit losses on loans. Management’s methodology for estimating the allowance balance consists of several key elements, which include pooling loans with similar characteristics into segments and using a discounted cash flow calculation to estimate losses. The discounted cash flow model inputs include loan level cash flow estimates for each loan segment based on peer and bank historic loss correlations with certain economic factors. Management uses a four quarter forecast of each economic factor that is used for each loan segment and the economic factors are assumed to revert to the historic mean over an eight quarter period after the four quarter forecast period. The economic factors management has selected include the California unemployment rate, California gross state product, California home price index, and a national CRE value index. These factors are evaluated and updated occasionally and as economic conditions change. Additionally, management uses qualitative adjustments to the discounted cash flow quantitative loss estimates in certain cases when management has assessed an adjustment is necessary. These qualitative adjustments are applied by pooled loan segment and have been made for increased risk due to loan quality trends, collateral risk, or other risks management determines are not adequately captured in the discounted cash flow loss estimation. Specific allowances on individually analyzed loans are added to the allowance on pools of collectively evaluated loans to derive the total allowance for credit losses on loans. Loans that do not share risk characteristics with pooled segments are evaluated on an individual basis. Loans for which the terms have been modified with a concession granted, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings. When foreclosure is probable or when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of collateral expected credit losses are based on the fair value of the collateral adjusted for selling costs as appropriate. When the discounted cash flow method is utilized the amount of credit loss is measured using the net present value of expected future cash flows adjusted for the effective interest rate used to discount expected cash flows to incorporate expected prepayments. The amount of any impairment will be charged off against the allowance for credit losses on loans if the amount is a confirmed loss or, alternatively, a specific allocation within the allowance will be established. Loans evaluated individually are specifically excluded from the collective evaluation in the allowance for credit losses. The allowance for credit losses on loans was calculated by pooling loans of similar credit risk characteristics and credit monitoring procedures. The loan portfolio is classified into eight segments of loans - commercial, commercial real estate – owner occupied, commercial real estate – non-owner occupied, land and construction, home equity, multifamily, residential mortgage and consumer and other. The risk characteristics of each loan portfolio segment are as follows: Commercial Commercial loans primarily rely on the identified cash flows of the borrower for repayment and secondarily on the underlying collateral provided by the borrower. However, the cash flows of the borrowers may not be as expected and the collateral securing these loans may vary in value. Most commercial loans are secured by the assets being financed or other business assets such as accounts receivable, inventory or equipment and may incorporate a personal guarantee; however, some loans may be unsecured. Included in commercial loans are $290,679,000 of PPP loans at December 31, 2020. Commercial Real Estate Commercial real estate loans rely primarily on the cash flows of the properties securing the loan and secondarily on the value of the property that is securing the loan. Commercial real estate loans comprise two segments differentiated by owner occupied commercial real estate and non-owner commercial real estate. Owner occupied commercial real estate loans are secured by commercial properties that are at least 50% occupied by the borrower or borrower affiliate. Non-owner occupied commercial real estate loans are secured by commercial properties that are less than 50% occupied by the borrower or borrower affiliate. Commercial real estate loans may be adversely affected by conditions in the real estate markets or in the general economy. Land and Construction Land and construction loans are generally based on estimates of costs and value associated with the complete project. Construction loans usually involve the disbursement of funds with repayment substantially dependent on the success of the completion of the project. Sources of repayment for these loans may be permanent loans from HBC or other lenders, or proceeds from the sales of the completed project. These loans are monitored by on-site inspections and are considered to have higher risk than other real estate loans due to the final repayment dependent on numerous factors including general economic conditions. Home Equity Home equity loans are secured by 1-4 family residences that are generally owner occupied. Repayment of these loans depends primarily on the personal income of the borrower and secondarily by the value of the property securing the loan which can be impacted by changes in economic conditions such as the unemployment rate and property values. Multifamily Multifamily loans are loans on 5+ residential properties. These loans rely primarily on the cash flows of the properties securing the loan for repayment and secondarily on the value of the properties securing the loan. The cash flows of these borrowers can fluctuate along with the values of the underlying property depending on general economic conditions. Residential Mortgages Residential mortgage loans are secured by 1-4 family residences which are generally owner-occupied. Repayment of these loans depends primarily on the personal income of the borrower and secondarily by the value of the property securing the loan which can be impacted by changes in economic conditions such as the unemployment rate and property values. Consumer and Other Consumer and other loans are secured by personal property or are unsecured and rely primarily on the income of the borrower for repayment and secondarily on the collateral value for secured loans. Borrower income and collateral value can vary dependent on economic conditions.
Loan Commitments and Related Financial Instruments	Loan Commitments and Related Financial Instruments Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. The notional amount of these commitments is not reflected in the consolidated financial statement until they are funded. The Company maintains an allowance for credit losses on unfunded commercial lending commitments and letters of credit to provide for the risk of loss inherent in these arrangements. The allowance is computed using a methodology similar to that used to determine the allowance for credit losses for loans, modified to take into account the probability of a drawdown on the commitment. The allowance for credit losses on unfunded loan commitments is classified as a liability account on the balance sheet and is adjusted as a provision for credit loss expense included in other noninterest expense.
Federal Home Loan Bank and Federal Reserve Bank Stock	Federal Home Loan Bank and Federal Reserve Bank Stock As a member of the Federal Home Loan Bank (“FHLB”) system, the Bank is required to own common stock in the FHLB based on the Bank’s level of borrowings and outstanding FHLB advances. FHLB stock is carried at cost and classified as a restricted security. Both cash and stock dividends from the FHLB are reported as income. As a member of the Federal Reserve Bank (“FRB”) of San Francisco, the Bank is required to own stock in the FRB of San Francisco based on a specified ratio relative to our capital. FRB stock is carried at cost and may be sold back to the FRB at its carrying value. Cash dividends received from the FRB are reported as income.
Company Owned Life Insurance and Split-Dollar Life Insurance Benefit Plan	Company-Owned Life Insurance and Split-Dollar Life Insurance Benefit Plan The Company has purchased life insurance policies on certain directors and officers. Company-owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for charges or other amounts due that are probable at settlement. The purchased insurance is subject to split-dollar insurance agreements with the insured participants, which continues after the participant’s employment and retirement. Accounting guidance requires that a liability be recorded primarily over the participant’s service period when a split-dollar life insurance agreement continues after a participant’s employment or retirement. The required accrued liability is based on either the post-employment benefit cost for the continuing life insurance or the future death benefit depending on the contractual terms of the underlying agreement.
Premises and Equipment	Premises and Equipment Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation and amortization are computed on the straight-line basis over the lesser of the respective lease terms or estimated useful lives. The Company owns one building which is being depreciated over 40 years. Furniture, equipment and improvements depreciated five
Business Combinations	Business Combinations The Company accounts for acquisitions of businesses using the acquisition method of accounting. Under the acquisition method, assets acquired and liabilities assumed are recorded at their estimated fair values at the date of acquisition. Management utilizes various valuation techniques including discounted cash flow analyses to determine these fair values. Any excess of the purchase price over amounts allocated to the acquired assets, including identifiable intangible assets, and liabilities assumed is recorded as goodwill.
Goodwill and Other Intangible Assets	Goodwill and Other Intangible Assets Goodwill resulting from business combinations represents the excess of the purchase price over the fair value of the net assets of businesses acquired. Goodwill is assessed at least annually for impairment and any such impairment is recognized in the period identified. Other intangible assets consist of a core deposit intangible, a below market lease, an above market lease liability, a customer relationship and brokered relationship intangible assets. They are initially measured at fair value and then are amortized over their estimated useful lives. The core deposits intangible assets from the acquisitions are being amortized on an accelerated method over ten years. The below market value lease intangible assets are being amortized on the straight line method over three years. The above market lease adjustment is being amortized on the straight line method over 60 months. The customer relationship and brokered relationship intangible assets are being amortized over ten years.
Foreclosed Assets	Foreclosed Assets Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. If fair value declines subsequent to foreclosure, a valuation allowance is recorded through operations. Operating costs after acquisition are expensed. Gains and losses on disposition are included in noninterest expense. There were no foreclosed assets at December 31, 2020 and 2019.
Retirement Plans	Retirement Plans Expenses for the Company’s non-qualified, unfunded defined benefits plan consists of service and interest cost and amortization of gains and losses not immediately recognized. Employee 401(k) and profit sharing plan expense is the amount of matching contributions. Deferred compensation and supplemental retirement plan expense allocates the benefits over years of service.
Loss Contingencies	Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. The Company’s accounting policy for legal costs related to loss contingencies is to accrue for the probable fees that can be reasonably estimated. The Company’s accounting policy for uncertain recoveries is to recognize the anticipated recovery when realization is deemed probable.
Income Taxes	Income Taxes The Company files consolidated Federal and combined and separate state income tax returns. Income tax expense is the total of the current year income tax payable or refunded, the change in deferred tax assets and liabilities, and low income housing investment losses, net of tax benefits received. Some items of income and expense are recognized in different years for tax purposes when applying generally accepted accounting principles, leading to timing differences between the Company’s actual tax liability and the amount accrued for this liability based on book income. These temporary differences comprise the “deferred” portion of the Company’s tax expense or benefit, which is accumulated on the Company’s books as a deferred tax asset or deferred tax liability until such time as they reverse. Realization of the Company’s deferred tax assets is primarily dependent upon the Company generating sufficient taxable income to obtain benefit from the reversal of net deductible temporary differences and utilization of tax credit carryforwards for Federal and California state income tax purposes. The amount of deferred tax assets considered realizable is subject to adjustment in future periods based on estimates of future taxable income. Under generally accepted accounting principles, a valuation allowance is required to be recognized if it is “more likely than not” that a deferred tax asset will not be realized. The determination of the realizability of the deferred tax assets is highly subjective and dependent upon judgment concerning management’s evaluation of both positive and negative evidence, including forecasts of future income, cumulative losses, applicable tax planning strategies, and assessments of current and future economic and business conditions. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and penalties related to uncertain tax positions as income tax expense.
Stock-Based Compensation	Stock-Based Compensation Compensation cost is recognized for stock options and restricted stock awards issued to employees and directors, based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. Compensation cost recognized reflects estimated forfeitures, adjusted as necessary for actual forfeitures.
Comprehensive Income (Loss)	Comprehensive Income (Loss) Total comprehensive income (loss) consists of net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to gains and losses that are included in comprehensive income (loss) but are excluded from net income (loss) because they have been recorded directly in equity, net of tax, under the provisions of certain accounting guidance. The Company’s sources of other comprehensive income (loss) are unrealized gains and losses on securities available-for-sale, and I/O strips, which are treated like available-for-sale securities, and the liabilities related to the Company’s defined benefit pension plan and the split-dollar life insurance benefit plan. Reclassification adjustments result from gains or losses that were realized and included in net income (loss) of the current period that also had been included in other comprehensive income as unrealized holding gains and losses.
Segment Reporting	Segment Reporting HBC is a commercial bank serving customers located in Alameda, Contra Costa, Marin, San Benito, San Francisco, San Mateo, and Santa Clara counties of California. Bay View Funding provides business essential working capital factoring financing to various industries throughout the United States. No customer accounts for more than 10 percent of revenue for HBC or the Company. With the previous acquisition of Bay View Funding, the Company has two reportable segments consisting of Banking and Factoring.
Reclassifications	Reclassifications Certain items in the consolidated financial statements for the years ended December 31, 2019 and 2018 were reclassified to conform to the 2020 presentation. These reclassifications did not affect previously reported net income or shareholders’ equity.
London Inter-Bank Offered Rate ("LIBOR") Transition and Phase-Out	London Inter-Bank Offered Rate (“LIBOR”) Transition and Phase-Out We have loans and borrowings that are tied to LIBOR benchmark interest rates. It is anticipated that the LIBOR index will be phased-out by the end of 2021 and the Federal Reserve Bank of New York has established the Secured Overnight Financing Rate (“SOFR”) as its recommended alternative to LIBOR. We have created a sub-committee of our Asset Liability Management Committee to address LIBOR transition and phase-out issues. We are currently reviewing loan documentation, technology systems and procedures we will need to implement for the transition.
Capital and Liquidity	Capital and Liquidity While the Company believes that it has sufficient capital to withstand an extended economic recession brought about by COVID-19, its reported and regulatory capital ratios could be adversely impacted by credit losses. The Company relies on cash on hand as well as dividends from its subsidiary bank to service its debt. If the Company’s capital deteriorates such that its subsidiary bank is unable to pay dividends to it for an extended period of time, the Company may not be able to service its debt. The Company maintains access to multiple sources of liquidity. Wholesale funding markets have remained open to us, but rates for short term funding have recently been volatile. If funding costs are elevated for an extended period of time, it could have an adverse effect on the Company’s net interest margin. If an extended recession caused large numbers of the Company’s deposit customers to withdraw their funds, the Company might become more reliant on volatile or more expensive sources of funding.
Asset Valuation	Asset Valuation The extent to which the COVID-19 pandemic will impact our business, results of operations and financial condition will depend on future developments, which are highly uncertain and difficult to predict. Those developments and factors include the duration and spread of the pandemic, its severity, the actions to contain the pandemic or address its impact, and how quickly and to what extent normal economic and operating conditions can resume. We do not yet know the full extent of the impact. However, the effects could have a material adverse impact on our business, asset valuations, financial condition and results of operations. Material adverse impacts may include all or a combination of valuation impairments on our intangible assets, investments, loans, or deferred tax assets.
Adoption of New Accounting Standards	Adoption of New Accounting Standards In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments in this update replace the incurred loss impairment methodology in prior GAAP with a methodology that reflects expected life-of-instrument credit losses and requires consideration of a broader range of reasonable and supportable information to estimate future credit loss estimates. As CECL encompasses all financial assets carried at amortized cost, the requirement that reserves be established based on an organization’s reasonable and supportable estimate of expected credit losses extends to held-to-maturity debt securities. The Company adopted CECL on January 1, 2020, using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. Results for the reporting periods after January 1, 2020, are presented under Topic 326, while prior period amounts continue to be reported in accordance with previously applicable GAAP. The following table shows the impact of adopting CECL on January 1, 2020: As Reported Pre- Impact of Under Topic 326 Topic 326 Topic 326 Adoption Adoption (Dollars in thousands) Assets: Allowance for credit losses on debt securities Held-to-maturity municipal securities $ 58 $ - $ 58 Loans Commercial 6,790 10,453 (3,663) CRE - owner occupied 6,994 3,825 3,169 CRE - non-owner occupied 11,672 3,760 7,912 Land and construction 1,458 2,621 (1,163) Home equity 1,321 2,244 (923) Multifamily 1,253 57 1,196 Residential mortgage 678 243 435 Consumer and other 1,689 82 1,607 Allowance for credit losses on loans $ 31,855 $ 23,285 $ 8,570 Liabilities: Allowance for credit losses on off-balance sheet credit exposures $ 679 $ 886 $ (207) As of the implementation date of January 1, 2020, the Company recognized an increase of $8,570,000 to its allowance for credit losses for loans. The majority of this increase is related to loan portfolios acquired in our recent acquisitions that under the previous methodology had no recognized allowance for loan losses until the estimated allowance exceeded the unaccreted discount. In the normal course of business, the Company makes commitments to extend credit to its customers as long as there are no violations of any conditions established in contractual arrangements. These commitments are obligations that represent a potential credit risk to the Company, yet are not reflected in any form within the Company’s consolidated balance sheets. As of the implementation date, there was a reduction of $207,000 to the allowance for losses recorded for the Company’s off-balance sheet credit exposures. The reduction in reserves for off-balance sheet credit exposures at implementation was primarily driven by applying a lower estimated CECL loss factor for unfunded commercial loan and construction loan commitments. The cumulative-effect adjustment as a result of the adoption of this guidance was recorded, net of tax of $2,359,000, as a $6,062,000 reduction to retained earnings effective January 1, 2020. In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment. The provisions of the update eliminated the existing second step of the goodwill impairment test which provides for the allocation of reporting unit fair value among existing assets and liabilities, with the net remaining amount representing the implied fair value of goodwill. In replacement of the existing goodwill impairment rule, the update provided that impairment should be recognized as the excess of any of the reporting unit’s goodwill over the fair value of the reporting unit. Under the provisions of this update, the amount of the impairment is limited to the carrying value of the reporting unit’s goodwill. The Company adopted the new guidance on January 1, 2020 and there was no material impact to the financial statements and no cumulative adjustments were made. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides temporary, optional guidance to ease the potential burden in accounting for, or recognizing the effects of, the transition away from the LIBOR or other interbank offered rate on financial reporting. To help with the transition to new reference rates, the ASU provides optional expedients and exceptions for applying GAAP to affected contract modifications and hedge accounting relationships. The main provisions include: ● A change in a contract’s reference interest rate would be accounted for as a continuation of that contract rather than as the creation of a new one for contracts, including loans, debt, leases, and other arrangements, that meet specific criteria. ● When updating its hedging strategies in response to reference rate reform, an entity would be allowed to preserve its hedge accounting. The guidance is applicable only to contracts or hedge accounting relationships that reference LIBOR or another reference rate expected to be discontinued. Because the guidance is meant to help entities through the transition period, it will be in effect for a limited time and will not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, for which an entity has elected certain optional expedients that are retained through the end of the hedging relationship. The amendments in this ASU are effective March 12, 2020 through December 31, 2022. ASU 2020-04 permits relief solely for reference rate reform actions and permits different elections over the effective date for legacy and new activity. Accordingly, the Company is evaluating and reassessing the elections on a quarterly basis. For current elections in effect regarding the assertion of the probability of forecasted transactions, the Company elects the expedient to assert the probability of the hedged interest payments and receipts regardless of any expected modification in terms related to reference rate reform. The Company believes the adoption of this guidance on activities subsequent to December 31, 2020 through December 31, 2022 will not have a material impact on the consolidated financial statements.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	12 Months Ended
Summary of Significant Accounting Policies (Tables)	Dec. 31, 2020
Summary of Significant Accounting Policies
Schedule of impact of adopting CECL	The following table shows the impact of adopting CECL on January 1, 2020: As Reported Pre- Impact of Under Topic 326 Topic 326 Topic 326 Adoption Adoption (Dollars in thousands) Assets: Allowance for credit losses on debt securities Held-to-maturity municipal securities $ 58 $ - $ 58 Loans Commercial 6,790 10,453 (3,663) CRE - owner occupied 6,994 3,825 3,169 CRE - non-owner occupied 11,672 3,760 7,912 Land and construction 1,458 2,621 (1,163) Home equity 1,321 2,244 (923) Multifamily 1,253 57 1,196 Residential mortgage 678 243 435 Consumer and other 1,689 82 1,607 Allowance for credit losses on loans $ 31,855 $ 23,285 $ 8,570 Liabilities: Allowance for credit losses on off-balance sheet credit exposures $ 679 $ 886 $ (207)

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income ("AOCI") (Tables)	12 Months Ended
Accumulated Other Comprehensive Income ("AOCI") (Tables)	Dec. 31, 2020
Accumulated Other Comprehensive Income ("AOCI")
Schedule of changes in AOCI by component	Year Ended December 31, 2020 and 2019 Unamortized Unrealized Unrealized Gain on Gains (Losses) on Available- Available- for-Sale Defined for-Sale Securities Benefit Securities Reclassified Pension and I/O to Held-to- Plan Strips Maturity Items(1) Total (Dollars in thousands) Beginning balance January 1, 2020, net of taxes $ 1,602 $ 298 $ (11,678) $ (9,778) Other comprehensive income (loss) before reclassification, net of taxes 2,522 — (3,459) (937) Amounts reclassified from other comprehensive income (loss), net of taxes (195) (37) 230 (2) Net current period other comprehensive income (loss), net of taxes 2,327 (37) (3,229) (939) Ending balance December 31, 2020, net of taxes $ 3,929 $ 261 $ (14,907) $ (10,717) Beginning balance January 1, 2019, net of taxes $ (5,007) $ 344 $ (7,718) $ (12,381) Other comprehensive income (loss) before reclassification, net of taxes 7,075 — (4,022) 3,053 Amounts reclassified from other comprehensive income (loss), net of taxes (466) (46) 62 (450) Net current period other comprehensive income (loss), net of taxes 6,609 (46) (3,960) 2,603 Ending balance December 31, 2019, net of taxes $ 1,602 $ 298 $ (11,678) $ (9,778) (1) This AOCI component is included in the computation of net periodic benefit cost (see Note 14—Benefit Plans) and includes split-dollar life insurance benefit plan.
Schedule of reclassifications out of AOCI into net income	Amounts Reclassified from AOCI(1) Year Ended December 31, Affected Line Item Where Details About AOCI Components 2020 2019 2018 Net Income is Presented (Dollars in thousands) Unrealized gains on available-for-sale securities and I/O strips $ 277 $ 661 $ 266 Gain on sales of securities (82) (195) (79) Income tax expense 195 466 187 Net of tax Amortization of unrealized gain on securities available-for-sale that were reclassified to securities held-to-maturity 52 65 44 Interest income on taxable securities (15) (19) (13) Income tax expense 37 46 31 Net of tax Amortization of defined benefit pension plan items (1) Prior transition obligation and actuarial losses (2) 60 96 65 Actuarial losses (3) (387) (184) (292) (327) (88) (227) Other noninterest expense 97 26 67 Income tax benefit (230) (62) (160) Net of tax Total reclassification from AOCI for the period $ 2 $ 450 $ 58 (1) This AOCI component is included in the computation of net periodic benefit cost (see Note 14 — Benefit Plans (2) This is related to the split dollar life insurance benefit plan. (3) This is related to the supplemental executive retirement plan.

Securities (Tables)

Securities (Tables)	12 Months Ended
Securities (Tables)	Dec. 31, 2020
Securities
Schedule of amortized cost and estimated fair value of securities	Gross Gross Allowance Estimated Amortized Unrealized Unrealized for Credit Fair December 31, 2020 Cost Gains (Losses) Losses Value (Dollars in thousands) Securities available-for-sale: Agency mortgage-backed securities $ 170,215 $ 5,111 $ — $ — $ 175,326 U.S. Treasury 59,797 651 — — 60,448 Total $ 230,012 $ 5,762 $ — $ — $ 235,774 Gross Gross Estimated Allowance Amortized Unrecognized Unrecognized Fair for Credit December 31, 2020 Cost Gains (Losses) Value Losses (Dollars in thousands) Securities held-to-maturity: Agency mortgage-backed securities $ 228,652 $ 6,075 $ (230) $ 234,497 $ — Municipals - exempt from Federal tax 68,791 1,639 — 70,430 (54) Total $ 297,443 $ 7,714 $ (230) $ 304,927 $ (54) Gross Gross Estimated Amortized Unrealized Unrealized Fair December 31, 2019 Cost Gains (Losses) Value (Dollars in thousands) Securities available-for-sale: Agency mortgage-backed securities $ 283,598 $ 934 $ (171) $ 284,361 U.S. Treasury 118,939 1,525 — 120,464 Total $ 402,537 $ 2,459 $ (171) $ 404,825 Gross Gross Estimated Amortized Unrecognized Unrecognized Fair December 31, 2019 Cost Gains (Losses) Value (Dollars in thousands) Securities held-to-maturity: Agency mortgage-backed securities $ 285,344 $ 1,206 $ (968) $ 285,582 Municipals - exempt from Federal tax 81,216 1,313 (4) 82,525 Total $ 366,560 $ 2,519 $ (972) $ 368,107
Schedule of securities with unrealized losses	Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2020 Value (Losses) Value (Losses) Value (Losses) (Dollars in thousands) Securities held-to-maturity: Agency mortgage-backed securities $ 30,930 (230) $ — $ — $ 30,930 $ (230) Total $ 30,930 $ (230) $ — $ — $ 30,930 $ (230) Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2019 Value (Losses) Value (Losses) Value (Losses) (Dollars in thousands) Securities available-for-sale: Agency mortgage-backed securities $ 100,816 $ (105) $ 27,534 $ (66) $ 128,350 $ (171) Total $ 100,816 $ (105) $ 27,534 $ (66) $ 128,350 $ (171) Securities held-to-maturity: Agency mortgage-backed securities $ 50,060 $ (178) $ 88,128 $ (790) $ 138,188 $ (968) Municipals - exempt from Federal tax 1,556 (4) — — 1,556 (4) Total $ 51,616 $ (182) $ 88,128 $ (790) $ 139,744 $ (972)
Schedule of proceeds from sales of securities and the resulting gains and losses	2020 2019 2018 (Dollars in thousands) Proceeds $ 56,598 $ 167,551 $ 94,291 Gross gains 277 1,094 1,243 Gross losses — (433) (977)
Schedule of amortized cost and estimated fair values of securities, by contractual maturity	Available-for-sale Amortized Estimated Cost Fair Value (Dollars in thousands) Due 3 months or less $ 14,988 $ 15,039 Due after 3 months through one year 44,809 45,409 Agency mortgage-backed securities 170,215 175,326 Total $ 230,012 $ 235,774 Held-to-maturity Amortized Estimated Cost Fair Value (Dollars in thousands) Due after 3 months through one year $ 493 $ 499 Due after one through five years 10,390 10,757 Due after five through ten years 31,509 32,149 Due after ten years 26,399 27,025 Agency mortgage-backed securities 228,652 234,497 Total $ 297,443 $ 304,927
Schedule of roll-forward by major security type of the allowance for credit losses on debt securities held-to-maturity	Municipals (Dollars in thousands) Beginning balance January 1, 2020 $ - Impact of adopting Topic 326 58 Provision (credit) for credit loss (4) Ending balance December 31, 2020 $ 54

Loans and Allowance for Credi_2

Loans and Allowance for Credit Losses on Loans (Tables)	12 Months Ended
Loans and Allowance for Credit Losses on Loans (Tables)	Dec. 31, 2020
Allowance for Credit Losses on Loans
Schedule of loans	December 31, December 31, 2020 2019 (Dollars in thousands) Loans held-for-investment: Commercial $ 846,386 $ 603,345 Real estate: CRE - owner occupied 560,362 548,907 CRE - non-owner occupied 693,103 767,821 Land and construction 144,594 147,189 Home equity 111,885 151,775 Multifamily 166,425 180,623 Residential mortgages 85,116 100,759 Consumer and other 18,116 33,744 Loans 2,625,987 2,534,163 Deferred loan fees, net (6,726) (319) Loans, net of deferred fees 2,619,261 2,533,844 Allowance for credit losses on loans (1) (44,400) (23,285) Loans, net $ 2,574,861 $ 2,510,559 (1)
Schedule of changes in allowance for loan (credit) losses	Year Ended December 31, 2020 Owner Non-owner Land & Home Multi- Residential Consumer Commercial Occupied Occupied Construction Equity Family Mortgage and Other Total (Dollars in thousands) Beginning of period balance $ 10,453 $ 3,825 $ 3,760 $ 2,621 $ 2,244 $ 57 $ 243 $ 82 $ 23,285 Adoption of Topic 326 (3,663) 3,169 7,912 (1,163) (923) 1,196 435 1,607 8,570 Balance at adoption on January 1, 2020 6,790 6,994 11,672 1,458 1,321 1,253 678 1,689 31,855 Charge-offs (1,776) — — — — — — (104) (1,880) Recoveries 998 1 — 70 93 — — 30 1,192 Net (charge-offs) recoveries (778) 1 — 70 93 — — (74) (688) Provision (credit) for credit losses on loans 5,575 1,565 4,744 981 (117) 1,551 265 (1,331) 13,233 End of period balance $ 11,587 $ 8,560 $ 16,416 $ 2,509 $ 1,297 $ 2,804 $ 943 $ 284 $ 44,400 Year Ended December 31, 2019 Commercial Real Estate Consumer Total (Dollars in thousands) Beginning of period balance $ 17,061 $ 10,671 $ 116 $ 27,848 Charge-offs (6,609) — (14) (6,623) Recoveries 1,045 169 — 1,214 Net recoveries (5,564) 169 (14) (5,409) Provision (credit) for loan losses (1,044) 1,910 (20) 846 End of period balance $ 10,453 $ 12,750 $ 82 $ 23,285 Year Ended December 31, 2018 Commercial Real Estate Consumer Total (Dollars in thousands) Beginning of period balance $ 10,608 $ 8,950 $ 100 $ 19,658 Charge-offs (2,002) — (24) (2,026) Recoveries 2,645 150 — 2,795 Net recoveries 643 150 (24) 769 Provision for loan losses 5,810 1,571 40 7,421 End of period balance $ 17,061 $ 10,671 $ 116 $ 27,848
Schedule of loans held-for-investment individually evaluated for impairment by class of loans	December 31, 2019 Consumer Commercial Real Estate and other Total (Dollars in thousands) Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 1,835 $ — $ — $ 1,835 Collectively evaluated for impairment 8,618 12,750 82 21,450 Total allowance balance $ 10,453 $ 12,750 $ 82 $ 23,285 Loans: Individually evaluated for impairment $ 4,810 $ 5,454 $ — $ 10,264 Collectively evaluated for impairment 598,535 1,891,620 33,744 2,523,899 Total loan balance $ 603,345 $ 1,897,074 $ 33,744 $ 2,534,163
Schedule of nonperforming loans	Restructured Nonaccrual Nonaccrual and Loans with no Specific with Specific over 90 Days Allowance for Allowance for Past Due Credit Credit and Still Losses Losses Accruing Total (Dollars in thousands) Commercial $ 752 $ 1,974 $ 81 $ 2,807 Real estate: CRE - Owner Occupied 3,706 — — 3,706 Home equity 949 — — 949 Consumer and other 407 — 407 Total $ 5,814 $ 1,974 $ 81 $ 7,869 Restructured and Loans over 90 Days Past Due and Still Nonaccrual Accruing Total (Dollars in thousands) Commercial $ 3,444 $ 1,153 $ 4,597 Real estate: CRE 5,094 — 5,094 Home equity 137 — 137 Total $ 8,675 $ 1,153 $ 9,828
Schedule of aging of past due loans by class of loans	December 31, 2020 30 - 59 60 - 89 90 Days or Days Days Greater Total Past Due Past Due Past Due Past Due Current Total (Dollars in thousands) Commercial $ 3,524 $ 259 $ 392 $ 4,175 $ 842,211 $ 846,386 Real estate: CRE - Owner Occupied 1,133 — 29 1,162 559,200 560,362 CRE - Non-Owner Occupied — 485 — 485 692,618 693,103 Land and construction — — — — 144,594 144,594 Home equity — — — 111,885 111,885 Multifamily — — — — 166,425 166,425 Residential mortgages — — — — 85,116 85,116 Consumer and other — — 407 407 17,709 18,116 Total $ 4,657 $ 744 $ 828 $ 6,229 $ 2,619,758 $ 2,625,987 December 31, 2019 30 - 59 60 - 89 90 Days or Days Days Greater Total Past Due Past Due Past Due Past Due Current Total (Dollars in thousands) Commercial $ 4,770 $ 2,097 $ 3,217 $ 10,084 $ 593,261 $ 603,345 Real estate: CRE - Owner Occupied — — 5,094 5,094 543,813 548,907 CRE - Non-Owner Occupied — — — — 767,821 767,821 Land and construction — — — — 147,189 147,189 Home equity — 137 — 137 151,638 151,775 Multifamily — — — — 180,623 180,623 Residential mortgages — — — — 100,759 100,759 Consumer and other — — — — 33,744 33,744 Total $ 4,770 $ 2,234 $ 8,311 $ 15,315 $ 2,518,848 $ 2,534,163
Summary of loan portfolio by loan type and credit quality classification	Revolving Loans Term Loans Amortized Cost Basis by Originated Period Amortized 2015 and Cost 2020 2019 2018 2017 2016 Prior Basis Total (Dollars in thousands) Commercial: Pass $ 431,369 $ 33,350 $ 21,154 $ 13,840 $ 7,341 $ 8,292 $ 296,286 $ 811,632 Special Mention 15,720 716 1,301 953 713 170 1,937 21,510 Substandard 4,036 - 19 758 2,396 73 3,236 10,518 Substandard-Nonaccrual 2,106 56 36 - 115 26 387 2,726 Total 453,231 34,122 22,510 15,551 10,565 8,561 301,846 846,386 CRE - Owner Occupied: Pass 168,224 73,064 68,068 51,705 50,716 109,350 15,964 537,091 Special Mention 3,151 2,568 4,128 783 - 2,569 - 13,199 Substandard 2,561 - 400 2,954 - 451 - 6,366 Substandard-Nonaccrual 3,678 - - - - 28 - 3,706 Total 177,614 75,632 72,596 55,442 50,716 112,398 15,964 560,362 CRE - Non-Owner Occupied: Pass 166,550 128,361 68,796 99,816 57,422 150,683 1,926 673,554 Special Mention 11,930 - 2,557 - - - - 14,487 Substandard 3,166 - 1,411 - 485 - - 5,062 Substandard-Nonaccrual - - - - - - - - Total 181,646 128,361 72,764 99,816 57,907 150,683 1,926 693,103 Land and construction: Pass 114,932 22,054 - - - 1,343 4,906 143,235 Special Mention - - - - - - - - Substandard 1,359 - - - - - - 1,359 Substandard-Nonaccrual - - - - - - - - Total 116,291 22,054 - - - 1,343 4,906 144,594 Home equity: Pass 266 - 74 - - - 109,848 110,188 Special Mention - - - - - - - - Substandard - - - - - 143 605 748 Substandard-Nonaccrual 117 - - - - - 832 949 Total 383 - 74 - - 143 111,285 111,885 Multifamily: Pass 31,481 39,183 17,248 24,572 16,235 30,751 880 160,350 Special Mention - - - - - 5,186 - 5,186 Substandard 889 - - - - - - 889 Substandard-Nonaccrual - - - - - - - - Total 32,370 39,183 17,248 24,572 16,235 35,937 880 166,425 Residential mortgage: Pass 12,798 10,048 3,246 7,324 28,115 15,568 - 77,099 Special Mention 5,089 - 1,630 - - - 6,719 Substandard - - - - - 1,298 - 1,298 Substandard-Nonaccrual - - - - - - - - Total 17,887 10,048 4,876 7,324 28,115 16,866 - 85,116 Consumer and other: Pass 10 522 1,486 20 116 987 14,568 17,709 Special Mention - - - - - - - - Substandard - - - - - - - - Substandard-Nonaccrual - - 407 - - - - 407 Total 10 522 1,893 20 116 987 14,568 18,116 Total loans $ 979,432 $ 309,922 $ 191,961 $ 202,725 $ 163,654 $ 326,918 $ 451,375 $ 2,625,987 Risk Grades:. Pass $ 925,630 $ 306,582 $ 180,072 $ 197,277 $ 159,945 $ 316,974 $ 444,378 $ 2,530,858 Special Mention 35,890 3,284 9,616 1,736 713 7,925 1,937 61,101 Substandard 12,011 - 1,830 3,712 2,881 1,965 3,841 26,240 Substandard-Nonaccrual 5,901 56 443 - 115 54 1,219 7,788 Grand Total $ 979,432 $ 309,922 $ 191,961 $ 202,725 $ 163,654 $ 326,918 $ 451,375 $ 2,625,987 December 31, 2019 Nonclassified Classified Total Commercial $ 599,143 4,202 $ 603,345 Real estate: CRE - Owner Occupied 538,229 10,678 548,907 CRE - Non-Owner Occupied 761,801 6,020 767,821 Land and construction 144,108 3,081 147,189 Home equity 149,131 2,644 151,775 Multifamily 180,623 — 180,623 Residential mortgages 100,262 497 100,759 Consumer and other 28,287 5,457 33,744 Total $ 2,501,584 $ 32,579 $ 2,534,163
Schedule of amortized cost basis of collateral-dependent loans	Collateral Type Real Estate Business Property Assets Unsecured Total (Dollars in thousands) Commercial $ 29 $ 1,815 $ 130 $ 1,974 Total $ 29 $ 1,815 $ 130 $ 1,974
Schedule of balance in allowance for loan losses and recorded investment in loans individually evaluated, based on impairment method	Allowance Unpaid for Loan Principal Recorded Losses Balance Investment Allocated (Dollars in thousands) With no related allowance recorded: Commercial $ 2,113 $ 2,113 $ — Real estate: CRE 5,094 5,094 — Home Equity 360 360 — Total with no related allowance recorded 7,567 7,567 — With an allowance recorded: Commercial 2,697 2,697 1,835 Total with an allowance recorded 2,697 2,697 1,835 Total $ 10,264 $ 10,264 $ 1,835
Schedule of loans by class modified as troubled debt restructurings	During the Year Ended December 31, 2020 Pre-modification Post-modification Number Outstanding Outstanding of Recorded Recorded Troubled Debt Restructurings: Contracts Investment Investment (Dollars in thousands) Commercial 15 $ 630 $ 630 Total 15 $ 630 $ 630 During the Year Ended December 31, 2019 Pre-modification Post-modification Number Outstanding Outstanding of Recorded Recorded Troubled Debt Restructurings: Contracts Investment Investment (Dollars in thousands) Commercial 3 $ 591 $ 591 Total 3 $ 591 $ 591
Schedule of loan deferrals by loan category	Underlying Collateral Business Real Assets Estate Total (in $000's, unaudited) Initial Deferments (1) $ - $ 1,573 $ 1,573 2nd Deferments (2) 295 684 979 Total $ 295 $ 2,257 $ 2,552 (1) (2)

Loan Servicing (Tables)

Loan Servicing (Tables)	12 Months Ended
Loan Servicing (Tables)	Dec. 31, 2020
Loan Servicing
Schedule of activity for loan servicing rights	2020 2019 2018 (Dollars in thousands) Beginning of year balance $ 583 $ 871 $ 1,373 Additions 213 157 200 Amortization (265) (445) (702) End of year balance $ 531 $ 583 $ 871
Schedule of activity for IO strip receivables	2020 2019 2018 (Dollars in thousands) Beginning of year balance $ 503 $ 568 $ 968 Unrealized loss (198) (65) (400) End of year balance $ 305 $ 503 $ 568

Premises and Equipment (Tables)

Premises and Equipment (Tables)	12 Months Ended
Premises and Equipment (Tables)	Dec. 31, 2020
Premises and Equipment
Schedule of premises and equipment	2020 2019 (Dollars in thousands) Building $ 3,508 $ 3,508 Land 2,900 2,900 Furniture and equipment 12,721 10,067 Leasehold improvements 6,726 7,372 25,855 23,847 Accumulated depreciation and amortization (15,396) (15,597) Premises and equipment, net $ 10,459 $ 8,250

Leases (Tables)

Leases (Tables)	12 Months Ended
Leases (Tables)	Dec. 31, 2020
Leases
Schedule of leases	December 31, 2020 2019 (Dollars in thousands) Operating Lease Cost (Cost resulting from lease payments) $ 6,837 $ 1,490 Operating Lease - Operating Cash Flows (Fixed Payments) $ 5,572 $ 1,519 Operating Lease - ROU assets $ 35,873 $ 12,173 Operating Lease – Liabilities $ 35,873 $ 13,032 Weighted Average Lease Term - Operating Leases 8.30 yrs 4.79 yrs Weighted Average Discount Rate - Operating Leases 4.55% 3.86%
Schedule of maturity analysis shows the undiscounted cash flows due on the Company's operating lease liabilities	(Dollars in thousands) 2021 $ 5,242 2022 5,668 2023 5,039 2024 4,692 2025 4,262 Thereafter 18,798 Total undiscounted cash flows 43,701 Discount on cash flows (7,828) Total lease liability $ 35,873

Business Combinations (Tables)

Business Combinations (Tables)	12 Months Ended
Business Combinations (Tables)	Dec. 31, 2020
Business Acquisition [Line Items]
Summary of consideration paid	(Dollars in thousands) Issuance of to Presidio shareholders and holders of restricted stock (stock price = $ 178,171 Consideration for Presidio stock options exchanged for Heritage Commerce Corp stock options 7,426 Cash paid for fractional shares 1 Total consideration $ 185,598
Schedule of unaudited pro forma combined consolidated financial statements and related adjustments	For the Year Ended December 31, 2019 December 31, 2018 (Unaudited) (Dollars in thousands, except per share amounts) Net interest income $ 163,555 $ 160,044 Provision for loan losses 870 7,694 Noninterest income 11,291 10,795 Noninterest expense 92,708 97,563 Income before income taxes 81,268 65,582 Income tax expense 23,730 17,549 Net income $ 57,538 $ 48,033 Net income per share - basic $ 0.98 $ 0.84 Net income per share - diluted $ 0.96 $ 0.83
Summary of pre-tax merger-related costs	For the Year Ended December 31, December 31, December 31, 2020 2019 2018 (Dollars in thousands) Salaries and employee benefits $ 356 $ 6,580 $ 3,569 Other 2,245 4,500 5,598 Total merger-related costs $ 2,601 $ 11,080 $ 9,167
Presidio bank
Business Acquisition [Line Items]
Schedule of recognized identified assets acquired and liabilities assumed	As As Recorded Fair Recorded by Value at Presidio Adjustments Acquisition (Dollars in thousands) Assets acquired: Cash and cash equivalents $ 117,989 $ (1) (a) $ 117,988 Securities available-for-sale 44,647 422 (b) 45,069 Securities held-to-maturity 463 — 463 Loans 698,493 (12,529) (c) 685,964 Allowance for loan losses (7,463) 7,463 (d) — Premises and equipment, net 1,756 — 1,756 Other intangible assets — 11,147 (e) 11,147 Other assets, net 43,539 (1,378) (f) 42,161 Total assets acquired $ 899,424 $ 5,124 904,548 Liabilities assumed: Deposits $ 774,260 $ (1) (g) 774,259 Subordinated Debt 10,000 — (h) 10,000 Other borrowings 442 — 442 Other liabilities 17,916 211 (i) 18,127 Total liabilities assumed $ 802,618 $ 210 802,828 Net assets acquired 101,720 Purchase price 185,598 Goodwill recorded in the merger $ 83,878 Explanation of certain fair value related adjustments for the Presidio merger: (a) Represents cash paid for fractional shares in the transaction. (b) Represents the fair value adjustment on investment securities available-for-sale. (c) Represents the fair value adjustment to the net book value of loans includes an interest rate mark and credit mark adjustment. (d) Represents the elimination of Presidio’s allowance for loan losses. (e) Represents intangible assets recorded to reflect the fair value of core deposits and an above market lease. The core deposit asset was recorded as an identifiable intangible asset and is amortized on an accelerated basis over the estimated average life of the deposit base. The above market lease liability will be accreted on the straight line method over 60 months . (f) Represents an adjustment to net deferred tax assets resulting from the fair value adjustments related to the acquired assets, liabilities assumed and identifiable intangible assets recorded. (g) Represents the fair value adjustment on time deposits, which was amortized as interest expense. (h) The Company acquired $10,000,000 of subordinated debt from the Presidio transaction. The Presidio subordinated debt was redeemed on December 19, 2019. (i) Represents adjustments to accrued accounts payable.

Goodwill and Other Intangible_2

Goodwill and Other Intangible Assets (Tables)	12 Months Ended
Goodwill and Other Intangible Assets (Tables)	Dec. 31, 2020
Goodwill and Other Intangible Assets
Schedule of carrying amount of goodwill by segment	December 31, 2020 2019 (Dollars in thousands) Banking $ 154,587 $ 154,376 Factoring 13,044 13,044 Total Goodwill $ 167,631 $ 167,420
Summary of Company's intangible assets	December 31, 2020 Gross Carrying Accumulated Amount Amortization Total (Dollars in thousands) Core deposit intangibles $ 25,023 $ (9,153) $ 15,870 Customer relationship and brokered relationship intangibles 1,900 (1,171) 729 Below market leases 770 (705) 65 Total $ 27,693 $ (11,029) $ 16,664 December 31, 2019 Gross Carrying Accumulated Amount Amortization Total (Dollars in thousands) Core deposit intangibles $ 25,023 $ (5,846) $ 19,177 Customer relationship and brokered relationship intangibles 1,900 (981) 919 Below market leases 770 (451) 319 Total $ 27,693 $ (7,278) $ 20,415
Schedule of estimated amortization expense	United United Bay View Funding Presidio Presidio American American Tri-Valley Tri-Valley Focus Customer & Core Above Core Below Core Below Core Brokered Total Deposit Market Deposit Market Deposit Market Deposit Relationship Amortization Year Intangible Lease Intangible Lease Intangible Lease Intangible Intangible Expense (Dollars in thousands) 2021 $ 1,447 $ (20) $ 602 $ (21) $ 184 $ 18 $ 596 $ 190 $ 2,996 2022 1,225 (20) 553 — 167 18 502 190 2,635 2023 1,118 (20) 521 — 158 18 420 190 2,405 2024 1,026 (13) 499 — 152 18 346 159 2,187 2025 970 — 478 — 145 18 202 — 1,813 Thereafter 3,211 — 1,042 — 306 69 — — 4,628 $ 8,997 $ (73) $ 3,695 $ (21) $ 1,112 $ 159 $ 2,066 $ 729 $ 16,664

Deposits (Tables)

Deposits (Tables)	12 Months Ended
Deposits (Tables)	Dec. 31, 2020
Deposits.
Schedule of maturities of time deposits including brokered deposits	(Dollars in thousands) 2021 $ 138,100 2022 10,255 2023 4,126 2024 435 2025 491 Total $ 153,407

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
Income Taxes (Tables)	Dec. 31, 2020
Income Taxes
Schedule of income tax (benefit)	2020 2019 2018 (Dollars in thousands) Currently payable tax: Federal $ 9,630 $ 7,631 $ 9,187 State 5,828 4,689 5,416 Total currently payable 15,458 12,320 14,603 Deferred tax expense (benefit): Federal (932) 2,200 (1,133) State (757) 1,331 (146) Total deferred tax (1,689) 3,531 (1,279) Income tax expense $ 13,769 $ 15,851 $ 13,324
Schedule of effective tax rate differs from the federal statutory rate	2020 2019 2018 Statutory Federal income tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal tax benefit 8.2 % 8.5 % 8.5 % Low income housing credits, net of investment losses (0.5) % (0.5) % (0.8) % Increase in cash surrender value of life insurance (0.8) % (0.5) % (0.5) % Stock option/restricted stock windfall tax benefit 0.6 % (0.3) % (0.9) % Non-taxable interest income (0.8) % (0.8) % (0.9) % Split-dollar term insurance 0.1 % 0.1 % 0.1 % Merger cost 0.0 % 0.5 % 0.5 % Other, net 0.3 % 0.1 % 0.4 % Effective tax rate 28.1 % 28.1 % 27.4 %
Schedule of deferred tax assets and liabilities	2020 2019 (Dollars in thousands) Deferred tax assets: Allowance for credit losses on loans $ 12,827 $ 7,231 Lease accounting 10,537 1,647 Defined postretirement benefit obligation 10,419 9,901 Accrued expenses 2,896 2,562 Federal net operating loss carryforwards 2,846 3,662 Stock compensation 1,894 1,636 State income taxes 1,142 954 California net operating loss carryforwards 1,106 1,489 Premises and equipment 459 695 Nonaccrual interest 101 61 Split-dollar life insurance benefit plan 80 75 Tax credit carryforwards 57 57 Other 469 654 Total deferred tax assets 44,833 30,624 Deferred tax liabilities: Lease accounting (10,537) (1,647) Loan fees (1,820) (1,842) Securities available-for-sale (1,764) (772) Intangible liabilities (1,388) (1,321) Prepaid expenses (689) (289) FHLB stock (166) (177) I/O strips (87) (144) Other (161) (130) Total deferred tax liabilities (16,612) (6,322) Net deferred tax assets $ 28,221 $ 24,302
Summary of carrying amount of low income tax housing investment	December 31, December 31, 2020 2019 (Dollars in thousands) Low income housing investments $ 5,246 $ 6,126 Future commitments $ 596 $ 625

Equity Plan (Tables)

Equity Plan (Tables)	12 Months Ended
Equity Plan (Tables)	Dec. 31, 2020
Equity Plan
Schedule of stock option activity under the equity plans	Weighted Weighted Average Average Remaining Aggregate Number Exercise Contractual Intrinsic Total Stock Options of Shares Price Life (Years) Value Outstanding at January 1, 2020 2,712,846 $ 8.80 Granted 329,500 $ 9.11 Exercised (381,184) $ 4.50 Forfeited or expired (114,341) $ 12.93 Outstanding at December 31, 2020 2,546,821 $ 9.30 5.43 $ 3,473,312 Vested or expected to vest 2,394,012 5.43 $ 3,264,913 Exercisable at December 31, 2020 2,017,899 4.60 $ 3,473,312
Schedule of information related to the equity Plan	December 31, 2020 2019 2018 Intrinsic value of options exercised $ 2,258,245 $ 1,618,615 $ 1,844,909 Cash received from option exercise $ 1,713,737 $ 1,626,113 $ 2,667,305 Tax benefit realized from option exercises $ 63,124 $ 258,037 $ 534,638 Weighted average fair value of options granted $ 1.15 $ 1.91 $ 3.03
Schedule of assumptions used to estimate the fair value of each option grant on the date of grant	December 31, 2020 2019 2018 Expected life in months(1) 72 72 72 Volatility(1) 29 % 24 % 21 % Weighted average risk-free interest rate(2) 0.53 % 2.23 % 2.88 % Expected dividends(3) 5.71 % 3.95 % 2.64 % (1) The expected life of employee stock options represents the weighted average period the stock options are expected to remain outstanding based on historical experience. Volatility is based on the historical volatility of the stock price over the same period of the expected life of the option. (2) Based on the U.S. Treasury constant maturity interest rate with a term consistent with the expected life of the option granted. (3) Each grant’s dividend yield is calculated by annualizing the most recent quarterly cash dividend and dividing that amount by the market price of the Company’s common stock as of the grant date
Schedule of restricted stock activity under the equity plans	Weighted Average Grant Number Date Fair Total Restricted Stock Award of Shares Value Nonvested shares at January 1, 2020 239,453 $ 11.23 Granted 168,117 $ 9.20 Vested (108,870) $ 13.19 Forfeited or expired — $ — Nonvested shares at December 31, 2020 298,700 $ 10.83

Benefit Plans (Tables)

Benefit Plans (Tables)	12 Months Ended
Benefit Plans (Tables)	Dec. 31, 2020
Supplemental Retirement Plan
Benefit plans
Schedule of change in projected benefit obligation	2020 2019 (Dollars in thousands) Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 33,689 $ 26,781 Projected benefit obligation of SERP agreements acquired from Presidio — 2,541 Service cost 492 263 Actuarial loss (gain) 3,008 4,182 Interest cost 935 1,059 Benefits paid (3,118) (1,137) Plan amendment 398 — Projected benefit obligation at end of year $ 35,404 $ 33,689 Amounts recognized in accumulated other comprehensive loss: Net actuarial loss $ 12,445 $ 9,714
Schedule of weighted-average assumptions used to determine the benefit obligation	2020 2019 Discount rate 2.26 % 3.01 % Rate of compensation increase N/A N/A
Schedule of estimated benefit payments over the next ten years, which reflect anticipated future events, service and other assumptions	Estimated Benefit Year Payments (Dollars in thousands) 2021 $ 2,123 2022 1,814 2023 1,918 2024 1,954 2025 2,026 2026 to 2030 11,465
Schedule of components of net periodic benefit cost	2020 2019 (Dollars in thousands) Components of net periodic benefit cost: Service cost $ 492 $ 263 Interest cost 935 1,059 Amortization of prior transition obligation 299 — Amortization of net actuarial loss 387 184 Accelerated benefits for Presidio SERP agreements due to change in control — 1,465 Net periodic benefit cost $ 2,113 $ 2,971 Amount recognized in other comprehensive income $ 1,924 $ 2,847
Schedule of assumption used to determine the net periodic benefit cost	2020 2019 Discount rate 3.01 % 4.03 % Rate of compensation increase N/A N/A
Split-Dollar Life Insurance Benefit Plan
Benefit plans
Schedule of change in projected benefit obligation	December 31, December 31, 2020 2019 (Dollars in thousands) Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 8,198 $ 6,903 Interest cost 246 278 Actuarial loss (gain) 1,245 1,017 Projected benefit obligation at end of period $ 9,689 $ 8,198
Schedule of weighted-average assumptions used to determine the benefit obligation	2020 2019 Discount rate 2.26 % 3.01 %
Schedule of amounts recognized in accumulated other comprehensive loss	December 31, December 31, 2020 2019 (Dollars in thousands) Net actuarial loss $ 5,170 $ 3,776 Prior transition obligation 970 1,059 Accumulated other comprehensive loss $ 6,140 $ 4,835
Schedule of components of net periodic benefit cost	2020 2019 (Dollars in thousands) Amortization of prior transition obligation and actuarial losses $ (60) $ (96) Interest cost 246 278 Net periodic benefit cost $ 186 $ 182 Amount recognized in other comprehensive income $ 1,305 $ 1,113
Schedule of assumption used to determine the net periodic benefit cost	2020 2019 Discount rate 3.01 % 4.03 %

Fair Value (Tables)

Fair Value (Tables)	12 Months Ended
Fair Value (Tables)	Dec. 31, 2020
Fair Value
Schedule of financial assets and liabilities measured on a recurring basis	Fair Value Measurements Using Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Balance (Level 1) (Level 2) (Level 3) (Dollars in thousands) Assets at December 31, 2020 Available-for-sale securities: Agency mortgage-backed securities $ 175,326 — $ 175,326 — U.S. Treasury 60,448 60,448 — — I/O strip receivables 305 — 305 — Assets at December 31, 2019 Available-for-sale securities: Agency mortgage-backed securities $ 284,361 — $ 284,361 — U.S. Treasury 120,464 120,464 — — I/O strip receivables 503 — 503 —
Schedule of carrying amounts and estimated fair values of financial instruments	Estimated Fair Value Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs Amounts (Level 1) (Level 2) (Level 3) Total (Dollars in thousands) Assets: Cash and cash equivalents $ 1,131,073 $ 1,131,073 $ — $ — $ 1,131,073 Securities available-for-sale 235,774 60,448 175,326 — 235,774 Securities held-to-maturity 297,389 — 304,927 — 304,927 Loans (including loans held-for-sale), net 2,576,560 — 1,699 2,572,993 2,574,692 FHLB stock, FRB stock, and other investments 33,522 — — — N/A Accrued interest receivable 10,546 309 1,512 8,725 10,546 I/O strips receivables 305 — 305 — 305 Liabilities: Time deposits $ 153,407 $ — $ 153,740 $ — $ 153,740 Other deposits 3,761,079 — 3,761,079 — 3,761,079 Subordinated debt 39,740 — 40,340 — 40,340 Accrued interest payable 545 — 545 — 545 ` Estimated Fair Value Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs Amounts (Level 1) (Level 2) (Level 3) Total (Dollars in thousands) Assets: Cash and cash equivalents $ 457,370 $ 457,370 $ — $ — $ 457,370 Securities available-for-sale 404,825 120,464 284,361 — 404,825 Securities held-to-maturity 366,560 — 368,107 — 368,107 Loans (including loans held-for-sale), net 2,511,611 — 1,052 2,512,277 2,513,329 FHLB stock, FRB stock, and other investments 29,842 — — — N/A Accrued interest receivable 10,915 446 2,218 8,251 10,915 I/O strips receivables 503 — 503 — 503 Liabilities: Time deposits $ 168,034 $ — $ 158,704 $ — $ 158,704 Other deposits 3,246,734 — 3,246,734 — 3,246,734 Subordinated debt 39,554 — 40,404 — 40,404 Accrued interest payable 707 — 707 — 707

Commitments and Loss Continge_2

Commitments and Loss Contingencies (Tables)	12 Months Ended
Commitments and Loss Contingencies (Tables)	Dec. 31, 2020
Commitments and Loss Contingencies
Schedule of commitments to extend credit	December 31, 2020 2019 Fixed Variable Fixed Variable Rate Rate Total Rate Rate Total (Dollars in thousands) Unused lines of credit and commitments to make loans $ 121,560 $ 970,614 $ 1,092,174 $ 147,372 $ 951,206 $ 1,098,578 Standby letters of credit 3,049 18,970 22,019 11,445 10,615 22,060 $ 124,609 $ 989,584 $ 1,114,193 $ 158,817 $ 961,821 $ 1,120,638

Shareholders' Equity and Earn_2

Shareholders' Equity and Earnings Per Share (Tables)	12 Months Ended
Shareholders' Equity and Earnings Per Share (Tables)	Dec. 31, 2020
Shareholders' Equity and Earnings Per Share
Schedule of reconciliation of factors used in computing basic and diluted earnings per common share	Year Ended December 31, 2020 2019 2018 (Dollars in thousands, except per share amounts) Net income $ 35,299 $ 40,461 $ $ 35,331 Weighted average common shares outstanding for basic earnings per common share 59,478,343 46,684,384 41,469,211 Dilutive potential common shares 690,796 1,221,845 713,728 Shares used in computing diluted earnings per common share 60,169,139 47,906,229 42,182,939 Basic earnings per share $ 0.59 $ 0.87 $ 0.85 Diluted earnings per share $ 0.59 $ 0.84 $ 0.84

Capital Requirements (Tables)

Capital Requirements (Tables)	12 Months Ended
Capital Requirements (Tables)	Dec. 31, 2020
Capital Requirements
Schedule of actual capital and required amounts and ratios	Required For Capital Adequacy Purposes Actual Under Basel III Amount Ratio Amount Ratio (1) (Dollars in thousands) As of December 31, 2020 Total Capital $ 483,870 16.5 % $ 307,067 10.5 % (to risk-weighted assets) Tier 1 Capital $ 410,307 14.0 % $ 248,578 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 410,307 14.0 % $ 204,711 7.0 % (to risk-weighted assets) Tier 1 Capital $ 410,307 9.1 % $ 180,281 4.0 % (to average assets) (1) Includes 2.5% capital conservation buffer, except the Tier 1 Capital to average assets ratio. Required For Capital Adequacy Purposes Actual Under Basel III Amount Ratio Amount Ratio (1) (Dollars in thousands) As of December 31, 2019 Total Capital $ 457,158 14.6 % $ 329,306 10.5 % (to risk-weighted assets) Tier 1 Capital $ 393,432 12.5 % $ 266,581 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 393,432 12.5 % $ 219,538 7.0 % (to risk-weighted assets) Tier 1 Capital $ 393,432 9.7 % $ 161,677 4.0 % (to average assets) (1) Includes 2.5% capital conservation buffer, except the Tier 1 Capital to average assets ratio.
HBC (Wholly-owned Subsidiary)
Capital Requirements
Schedule of actual capital and required amounts and ratios	Required For Capital To Be Well-Capitalized Adequacy Under Basel III PCA Regulatory Purposes Actual Requirements Under Basel III Amount Ratio Amount Ratio Amount Ratio (1) (Dollars in thousands) As of December 31, 2020 Total Capital $ 461,933 15.8 % $ 292,258 10.0 % $ 306,871 10.5 % (to risk-weighted assets) Tier 1 Capital $ 428,109 14.6 % $ 233,806 8.0 % $ 248,419 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 428,109 14.6 % $ 189,968 6.5 % $ 204,580 7.0 % (to risk-weighted assets) Tier 1 Capital $ 428,109 9.5 % $ 225,263 5.0 % $ 180,211 4.0 % (to average assets) (1) Includes 2.5% capital conservation buffer, except the Tier 1 Capital to average assets ratio. Required For Capital To Be Well-Capitalized Adequacy Under Basel III PCA Regulatory Purposes Actual Requirements Under Basel III Amount Ratio Amount Ratio Amount Ratio (1) (Dollars in thousands) As of December 31, 2019 Total Capital $ 435,757 13.9 % $ 313,485 10.0 % $ 329,159 10.5 % (to risk-weighted assets) Tier 1 Capital $ 411,585 13.1 % $ 250,788 8.0 % $ 266,462 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 411,585 13.1 % $ 203,765 6.5 % $ 219,439 7.0 % (to risk-weighted assets) Tier 1 Capital $ 411,585 10.2 % $ 202,013 5.0 % $ 161,611 4.0 % (to average assets) (1) Includes 2.5% capital conservation buffer, except the Tier 1 Capital to average assets.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	12 Months Ended
Revenue Recognition (Tables)	Dec. 31, 2020
Revenue Recognition
Schedule of noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606	Year Ended December 31, 2020 2019 2018 (Dollars in thousands) Noninterest Income In-scope of Topic 606: Service charges and fees on deposit accounts $ 2,859 $ 4,510 $ 4,113 Gain on the disposition of foreclosed assets 791 — — Total noninterest income in-scope of Topic 606 3,650 4,510 4,113 Noninterest Income Out-of-scope of Topic 606 6,272 5,734 5,461 Total noninterest income $ 9,922 $ 10,244 $ 9,574

Noninterest Expense (Tables)

Noninterest Expense (Tables)	12 Months Ended
Noninterest Expense (Tables)	Dec. 31, 2020
Noninterest Expense
Schedule of noninterest expense	Year Ended December 31, 2020 2019 2018 (Dollars in thousands) Salaries and employee benefits $ 50,927 $ 50,754 $ 43,762 Occupancy and equipment 8,018 6,647 5,411 Professional fees 5,338 3,259 1,969 Amortization of intangible assets 3,751 2,739 1,943 Software subscriptions 3,102 2,397 2,343 Data processing 2,770 2,890 1,978 Insurance expense 2,286 1,864 1,685 Supplemental retirement plan cost 1,724 1,240 202 Other 11,595 13,108 16,228 Total noninterest expense $ 89,511 $ 84,898 $ 75,521 The following table presents the merger-related costs by category for the periods indicated: For the Year Ended December 31, December 31, December 31, 2020 2019 2018 (Dollars in thousands) Salaries and employee benefits $ 356 $ 6,580 $ 3,569 Other 2,245 4,500 5,598 Total merger-related costs $ 2,601 $ 11,080 $ 9,167

Business Segment Information (T

Business Segment Information (Tables)	12 Months Ended
Business Segment Information (Tables)	Dec. 31, 2020
Business Segment Information
Schedule of information by operating segment	Year Ended December 31, 2020 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 139,744 $ 10,727 $ 150,471 Intersegment interest allocations 923 (923) — Total interest expense 8,581 — 8,581 Net interest income 132,086 9,804 141,890 Provision for credit losses on loans 12,928 305 13,233 Net interest income after provision 119,158 9,499 128,657 Noninterest income 9,277 645 9,922 Noninterest expense (2) 83,149 6,362 89,511 Intersegment expense allocations 404 (404) — Income before income taxes 45,690 3,378 49,068 Income tax expense 12,770 999 13,769 Net income $ 32,920 $ 2,379 $ 35,299 Total assets $ 4,567,239 $ 66,875 $ 4,634,114 Loans, net of deferred fees $ 2,572,060 $ 47,201 $ 2,619,261 Goodwill $ 154,587 $ 13,044 $ 167,631 (1) Includes the holding company’s results of operations. (2) The banking segment’s noninterest expense includes merger-related costs of $2,601,000. Year Ended December 31, 2019 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 130,971 $ 11,688 $ 142,659 Intersegment interest allocations 1,182 (1,182) — Total interest expense 10,847 — 10,847 Net interest income 121,306 10,506 131,812 Provision for loan losses 517 329 846 Net interest income after provision 120,789 10,177 130,966 Noninterest income 9,643 601 10,244 Noninterest expense (2) 78,159 6,739 84,898 Intersegment expense allocations 547 (547) — Income before income taxes 52,820 3,492 56,312 Income tax expense 14,819 1,032 15,851 Net income $ 38,001 $ 2,460 $ 40,461 Total assets $ 4,045,801 $ 63,662 $ 4,109,463 Loans, net of deferred fees $ 2,487,864 $ 45,980 $ 2,533,844 Goodwill $ 154,376 $ 13,044 $ 167,420 (1) Includes the holding company’s results of operations. (2) The banking segment’s noninterest expense includes merger-related costs of $11,080,000. Year Ended December 31, 2018 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 115,147 $ 14,698 $ 129,845 Intersegment interest allocations 1,856 (1,856) — Total interest expense 7,822 — 7,822 Net interest income 109,181 12,842 122,023 Provision for loan losses 7,224 197 7,421 Net interest income after provision 101,957 12,645 114,602 Noninterest income 8,662 912 9,574 Noninterest expense (2) 69,164 6,357 75,521 Intersegment expense allocations 753 (753) — Income before income taxes 42,208 6,447 48,655 Income tax expense 11,418 1,906 13,324 Net income $ 30,790 $ 4,541 $ 35,331 Total assets $ 3,028,721 $ 67,841 $ 3,096,562 Loans, net of deferred fees $ 1,832,815 $ 53,590 $ 1,886,405 Goodwill $ 70,709 $ 13,044 $ 83,753 (1) Includes the holding company’s results of operations. (2) The banking segment’s noninterest expense includes merger-related costs of $9,167,000.

Parent Company only Condensed_2

Parent Company only Condensed Financial Information (Tables) - HCC (Parent)	12 Months Ended
	Dec. 31, 2020
Condensed financial statements
Schedule of condensed balance sheets	Condensed Balance Sheets December 31, 2020 2019 (Dollars in thousands) Assets Cash and cash equivalents $ 20,378 $ 20,260 Investment in subsidiary bank 595,681 594,868 Other assets 1,881 1,761 Total assets $ 617,940 $ 616,889 Liabilities and Shareholders' Equity Subordinated debt, net of issuance costs $ 39,740 $ 39,554 Other liabilities 311 627 Shareholders' equity 577,889 576,708 Total liabilities and shareholders' equity $ 617,940 $ 616,889
Schedule of condensed statements of income	Condensed Statements of Operations Year Ended December 31, 2020 2019 2018 (Dollars in thousands) Dividend from subsidiary bank $ 32,000 $ 22,500 $ 17,000 Other income — 121 — Interest expense (2,321) (2,314) (2,315) Other expenses (3,263) (3,084) (3,030) Income before income taxes and equity in net income of subsidiary bank 26,416 17,223 11,655 Equity in undistributed net income of subsidiary bank 7,255 21,757 22,161 Income tax benefit 1,628 1,481 1,515 Net income $ 35,299 $ 40,461 $ 35,331
Schedule of condensed statements of cash flows	Condensed Statements of Cash Flows Year Ended December 31, 2020 2019 2018 (Dollars in thousands) Cash flows from operating activities: Net Income $ 35,299 $ 40,461 $ 35,331 Adjustments to reconcile net income to net cash provided by operations: Amortization of restricted stock awards, net 1,689 1,283 1,109 Equity in undistributed net income of subsidiary bank (7,255) (21,757) (22,161) Net change in other assets and liabilities (250) 12 (64) Net cash provided by operating activities 29,483 19,999 14,215 Cash flows from financing activities: Payment of cash dividends (31,079) (22,723) (18,464) Proceeds from exercise of stock options 1,714 1,626 2,667 Net cash provided by (used in) financing activities (29,365) (21,097) (15,797) Net increase (decrease) in cash and cash equivalents 118 (1,098) (1,582) Cash and cash equivalents, beginning of year 20,260 21,358 22,940 Cash and cash equivalents, end of year $ 20,378 $ 20,260 $ 21,358

Quarterly Financial Data (Una_2

Quarterly Financial Data (Unaudited) (Tables)	12 Months Ended
Quarterly Financial Data (Unaudited) (Tables)	Dec. 31, 2020
Quarterly Financial Data (Unaudited)
Schedule of the Company's selected unaudited quarterly financial data	Quarter Ended 12/31/2020 9/30/2020 6/30/2020 3/31/2020 (Dollars in thousands, except per share amounts) Interest income $ 36,145 $ 36,252 $ 37,132 $ 40,942 Interest expense 1,940 2,087 2,192 2,362 Net interest income 34,205 34,165 34,940 38,580 Provision (recapture) for credit losses on loans (1,348) 197 1,114 13,270 Net interest income after provision for credit losses on loans 35,553 33,968 33,826 25,310 Noninterest income 2,056 2,595 2,078 3,193 Noninterest expense (1) 21,557 21,168 21,012 25,774 Income before income taxes 16,052 15,395 14,892 2,729 Income tax expense 4,429 4,198 4,274 868 Net income $ 11,623 $ 11,197 $ 10,618 $ 1,861 Earnings per common share Basic $ 0.19 $ 0.19 $ 0.18 $ 0.03 Diluted $ 0.19 $ 0.19 $ 0.18 $ 0.03 (1) Includes $101,000, $17,000, $59,000, and $2,424,000 pre-tax acquisition costs in the fourth, third, second and first quarters of 2020, respectively, related to the Presidio merger. Quarter Ended 12/31/2019 9/30/2019 6/30/2019 3/31/2019 (Dollars in thousands, except per share amounts) Interest income $ 42,471 $ 33,250 $ 33,489 $ 33,449 Interest expense 3,242 2,625 2,573 2,407 Net interest income 39,229 30,625 30,916 31,042 Provision (credit) for loan losses 3,223 (576) (740) (1,061) Net interest income after provision for loan losses 36,006 31,201 31,656 32,103 Noninterest income 2,393 2,618 2,765 2,468 Noninterest expense (1) 30,626 17,909 18,445 17,918 Income before income taxes 7,773 15,910 15,976 16,653 Income tax expense 2,088 4,633 4,623 4,507 Net income $ 5,685 $ 11,277 $ 11,353 $ 12,146 Earnings per common share Basic $ 0.10 $ 0.26 $ 0.26 $ 0.28 Diluted $ 0.10 $ 0.26 $ 0.26 $ 0.28 (1) Includes $9,879,000, $661,000, and $540,000 pre-tax acquisition costs in the fourth, third, and second quarters of 2019, respectively, related to the Presidio merger.

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Cash and Cash Equivalents (Details)	12 Months Ended
	Dec. 31, 2020
Cash and Cash Equivalents
Period for which federal funds are sold and purchased	1 day

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Premises and Equipment (Details)	12 Months Ended
	Dec. 31, 2020building
Premises and Equipment
Number of buildings owned	1
Building
Premises and Equipment
Estimated useful life	40 years
Furniture \| Minimum
Premises and Equipment
Estimated useful life	5 days
Furniture \| Maximum
Premises and Equipment
Estimated useful life	15 years
Equipment \| Minimum
Premises and Equipment
Estimated useful life	5 years
Equipment \| Maximum
Premises and Equipment
Estimated useful life	15 years
Leasehold improvements \| Minimum
Premises and Equipment
Estimated useful life	5 years
Leasehold improvements \| Maximum
Premises and Equipment
Estimated useful life	15 years

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Goodwill and Other Intangible Assets (Details)	Oct. 11, 2019	May 04, 2018	Aug. 01, 2015	Oct. 31, 2019	Nov. 30, 2014
United American Bank
Goodwill and Other Intangible Assets
Useful life, amortization period		3 years
Presidio bank
Goodwill and Other Intangible Assets
Useful life, amortization period				60 months
Core deposit \| Focus
Goodwill and Other Intangible Assets
Useful life, amortization period			10 years
Below or Above market-value lease \| Presidio bank
Goodwill and Other Intangible Assets
Useful life, amortization period	60 months
Customer relationship and brokered relationship \| BVF/CSNK
Goodwill and Other Intangible Assets
Useful life, amortization period					10 years

Summary of Significant Accoun_7

Summary of Significant Accounting Policies - Foreclosed Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Foreclosed Assets
Foreclosed assets	$ 0	$ 0

Summary of Significant Accoun_8

Summary of Significant Accounting Policies - Segment Reporting (Details)	12 Months Ended
	Dec. 31, 2020segmentcustomer
Segment Reporting
Number of customers accounting for more than 10 percent of revenue for HBC or the Company \| customer	0
Number of Reportable Segments \| segment	2

Summary of Significant Accoun_9

Summary of Significant Accounting Policies - Adoption of New Accounting Standards (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Summary of Significant Accounting Policies
Assets	$ 4,634,114	$ 4,109,463	$ 3,096,562
Liabilities	$ 4,056,225	$ 3,532,755

Summary of Significant Accou_10

Summary of Significant Accounting Policies - Impact of Adoption (Details) - USD ($)	Dec. 31, 2020	Jan. 01, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Allowance for credit losses on debt securities	$ 54,000	$ 58,000
Loans, net of deferred fees	2,625,987,000	31,855,000	$ 2,534,163,000
Allowance for credit losses on off-balance sheet credit exposures	1,078,000	679,000
Allowance for credit losses on loans	44,400,000	31,855,000	23,285,000	$ 27,848,000	$ 19,658,000
Cumulative-effect adjustment as a result of the adoption of ASU 2016-03	577,889,000		576,708,000	367,466,000	271,239,000
Retained earnings	94,899,000		96,741,000
ASU 2016-03 - Topic 326
Allowance for credit losses on loans			(8,570,000)
Cumulative-effect adjustment as a result of the adoption of ASU 2016-03	58,000
ASU 2016-03 - Topic 326 \| Restatement Adjustment
Allowance for credit losses on debt securities			58,000
Loans, net of deferred fees			8,570,000
Allowance for credit losses on off-balance sheet credit exposures	(207,000)		(207,000)
Allowance for credit losses on loans			8,570,000
Cumulative-effect adjustment as a result of the adoption of ASU 2016-03			2,359,000
Retained earnings			6,062,000
ASU 2016-03 - Topic 326 \| Previously Reported
Loans, net of deferred fees			23,285,000
Allowance for credit losses on off-balance sheet credit exposures			886,000
HCC (Parent)
Cumulative-effect adjustment as a result of the adoption of ASU 2016-03	577,889,000		576,708,000
Commercial
Loans, net of deferred fees			603,345,000
Allowance for credit losses on loans			10,453,000	$ 17,061,000	$ 10,608,000
Commercial
Loans, net of deferred fees	846,386,000	6,790,000	603,345,000
Allowance for credit losses on loans	11,587,000	6,790,000	10,453,000
Commercial \| ASU 2016-03 - Topic 326
Allowance for credit losses on loans			3,663,000
Commercial \| ASU 2016-03 - Topic 326 \| Restatement Adjustment
Loans, net of deferred fees			(3,663,000)
Commercial \| ASU 2016-03 - Topic 326 \| Previously Reported
Loans, net of deferred fees			10,453,000
Commercial \| Commercial
Loans, net of deferred fees	846,386,000		603,345,000
CRE - owner occupied
Loans, net of deferred fees	560,362,000	6,994,000	548,907,000
Allowance for credit losses on loans	8,560,000	6,994,000	3,825,000
CRE - owner occupied \| ASU 2016-03 - Topic 326
Allowance for credit losses on loans			(3,169,000)
CRE - owner occupied \| ASU 2016-03 - Topic 326 \| Restatement Adjustment
Loans, net of deferred fees			3,169,000
CRE - owner occupied \| ASU 2016-03 - Topic 326 \| Previously Reported
Loans, net of deferred fees			3,825,000
CRE - non-owner occupied
Loans, net of deferred fees	693,103,000	11,672,000	767,821,000
Allowance for credit losses on loans	16,416,000	11,672,000	3,760,000
CRE - non-owner occupied \| ASU 2016-03 - Topic 326
Allowance for credit losses on loans			(7,912,000)
CRE - non-owner occupied \| ASU 2016-03 - Topic 326 \| Restatement Adjustment
Loans, net of deferred fees			7,912,000
CRE - non-owner occupied \| ASU 2016-03 - Topic 326 \| Previously Reported
Loans, net of deferred fees			3,760,000
Land and construction
Loans, net of deferred fees	144,594,000	1,458,000	147,189,000
Allowance for credit losses on loans	2,509,000	1,458,000	2,621,000
Land and construction \| ASU 2016-03 - Topic 326
Allowance for credit losses on loans			1,163,000
Land and construction \| ASU 2016-03 - Topic 326 \| Restatement Adjustment
Loans, net of deferred fees			(1,163,000)
Land and construction \| ASU 2016-03 - Topic 326 \| Previously Reported
Loans, net of deferred fees			2,621,000
Home equity
Loans, net of deferred fees	111,885,000	1,321,000	151,775,000
Allowance for credit losses on loans	1,297,000	1,321,000	2,244,000
Home equity \| ASU 2016-03 - Topic 326
Allowance for credit losses on loans			923,000
Home equity \| ASU 2016-03 - Topic 326 \| Restatement Adjustment
Loans, net of deferred fees			(923,000)
Home equity \| ASU 2016-03 - Topic 326 \| Previously Reported
Loans, net of deferred fees			2,244,000
Multi-family
Loans, net of deferred fees	166,425,000	1,253,000	180,623,000
Allowance for credit losses on loans	2,804,000	1,253,000	57,000
Multi-family \| ASU 2016-03 - Topic 326
Allowance for credit losses on loans			(1,196,000)
Multi-family \| ASU 2016-03 - Topic 326 \| Restatement Adjustment
Loans, net of deferred fees			1,196,000
Multi-family \| ASU 2016-03 - Topic 326 \| Previously Reported
Loans, net of deferred fees			57,000
Residential mortgages
Loans, net of deferred fees	85,116,000	678,000	100,759,000
Allowance for credit losses on loans	943,000	678,000	243,000
Residential mortgages \| ASU 2016-03 - Topic 326
Allowance for credit losses on loans			(435,000)
Residential mortgages \| ASU 2016-03 - Topic 326 \| Restatement Adjustment
Loans, net of deferred fees			435,000
Residential mortgages \| ASU 2016-03 - Topic 326 \| Previously Reported
Loans, net of deferred fees			243,000
Consumer and other
Loans, net of deferred fees	18,116,000	1,689,000	33,744,000
Allowance for credit losses on loans	284,000	$ 1,689,000	82,000
Consumer and other \| ASU 2016-03 - Topic 326
Allowance for credit losses on loans			(1,607,000)
Consumer and other \| ASU 2016-03 - Topic 326 \| Restatement Adjustment
Loans, net of deferred fees			1,607,000
Consumer and other \| ASU 2016-03 - Topic 326 \| Previously Reported
Loans, net of deferred fees			$ 82,000
SBA Paycheck Protection Program ("PPP") loans \| Commercial
Loans, net of deferred fees	$ 290,679,000

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (''AOCI'') - Changes in AOCI by Component (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Changes in AOCI by Component
Balance at the beginning of the period, net of taxes	$ (9,778)
Net current period other comprehensive income (loss), net of taxes	(939)	$ 2,603	$ (3,129)
Balance at the end of the period, net of taxes	(10,717)	(9,778)
Accumulated Other Comprehensive Income / (Loss)
Changes in AOCI by Component
Balance at the beginning of the period, net of taxes	(9,778)	(12,381)
Other comprehensive loss before reclassification, net of taxes	(937)	3,053
Amounts reclassified from other comprehensive income (loss), net of taxes	(2)	(450)
Net current period other comprehensive income (loss), net of taxes	(939)	2,603	(3,129)
Balance at the end of the period, net of taxes	(10,717)	(9,778)	(12,381)
Unrealized Gains (Losses) on Available-for-Sale Securities and I/O Strips
Changes in AOCI by Component
Balance at the beginning of the period, net of taxes	1,602	(5,007)
Other comprehensive loss before reclassification, net of taxes	2,522	7,075
Amounts reclassified from other comprehensive income (loss), net of taxes	(195)	(466)
Net current period other comprehensive income (loss), net of taxes	2,327	6,609
Balance at the end of the period, net of taxes	3,929	1,602	(5,007)
Unamortized Unrealized Gain on Available-for-Sale Securities Reclassified to Held-to-Maturity
Changes in AOCI by Component
Balance at the beginning of the period, net of taxes	298	344
Amounts reclassified from other comprehensive income (loss), net of taxes	(37)	(46)
Net current period other comprehensive income (loss), net of taxes	(37)	(46)
Balance at the end of the period, net of taxes	261	298	344
Defined Benefit Pension Plan Items
Changes in AOCI by Component
Balance at the beginning of the period, net of taxes	(11,678)	(7,718)
Other comprehensive loss before reclassification, net of taxes	(3,459)	(4,022)
Amounts reclassified from other comprehensive income (loss), net of taxes	230	62
Net current period other comprehensive income (loss), net of taxes	(3,229)	(3,960)
Balance at the end of the period, net of taxes	$ (14,907)	$ (11,678)	$ (7,718)

Accumulated Other Comprehensi_4

Accumulated Other Comprehensive Income (''AOCI'') - Amount Reclassified from AOCI (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Amount Reclassified from AOCI
Gain on sales of securities									$ 277	$ 661	$ 266
Interest income on taxable securities									11,637	15,836	15,211
Income tax expense	$ (4,429)	$ (4,198)	$ (4,274)	$ (868)	$ (2,088)	$ (4,633)	$ (4,623)	$ (4,507)	(13,769)	(15,851)	(13,324)
Net income	$ 11,623	$ 11,197	$ 10,618	$ 1,861	$ 5,685	$ 11,277	$ 11,353	$ 12,146	35,299	40,461	35,331
Unrealized Gains (Losses) on Available-for-Sale Securities and I/O Strips
Amount Reclassified from AOCI
Net of tax									195	466
Unrealized Gains (Losses) on Available-for-Sale Securities and I/O Strips \| Amount Reclassified from AOCI
Amount Reclassified from AOCI
Gain on sales of securities									277	661	266
Income tax expense									(82)	(195)	(79)
Net income									195	466	187
Unamortized Unrealized Gain on Available-for-Sale Securities Reclassified to Held-to-Maturity
Amount Reclassified from AOCI
Net of tax									37	46
Unamortized Unrealized Gain on Available-for-Sale Securities Reclassified to Held-to-Maturity \| Amount Reclassified from AOCI
Amount Reclassified from AOCI
Interest income on taxable securities									52	65	44
Income tax expense									(15)	(19)	(13)
Net income									37	46	31
Defined Benefit Pension Plan Items
Amount Reclassified from AOCI
Net of tax									(230)	(62)
Defined Benefit Pension Plan Items \| Amount Reclassified from AOCI
Amount Reclassified from AOCI
Other noninterest expense									(327)	(88)	(227)
Income tax benefit									97	26	67
Net of tax									(230)	(62)	(160)
Prior transition obligation \| Amount Reclassified from AOCI
Amount Reclassified from AOCI
Other noninterest expense									60	96	65
Actuarial losses \| Amount Reclassified from AOCI
Amount Reclassified from AOCI
Other noninterest expense									(387)	(184)	(292)
Accumulated Other Comprehensive Income / (Loss)
Amount Reclassified from AOCI
Net of tax									2	450
Accumulated Other Comprehensive Income / (Loss) \| Amount Reclassified from AOCI
Amount Reclassified from AOCI
Net of tax									$ 2	$ 450	$ 58

Securities - Amortized Cost and

Securities - Amortized Cost and Estimated Fair Value of Securities - Securities Available-for-sale (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Securities available-for-sale:
Amortized Cost	$ 230,012	$ 402,537
Gross Unrealized Gains	5,762	2,459
Gross Unrealized (Losses)		(171)
Estimated Fair Value	235,774	404,825
Agency mortgage-backed securities
Securities available-for-sale:
Amortized Cost	170,215	283,598
Gross Unrealized Gains	5,111	934
Gross Unrealized (Losses)		(171)
Estimated Fair Value	175,326	284,361
U.S. Treasury
Securities available-for-sale:
Amortized Cost	59,797	118,939
Gross Unrealized Gains	651	1,525
Estimated Fair Value	$ 60,448	$ 120,464

Securities - Amortized Cost a_2

Securities - Amortized Cost and Estimated Fair Value of Securities - Securities Held-to-maturity (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Jan. 01, 2020	Dec. 31, 2019
Securities held-to-maturity:
Amortized Cost	$ 297,443		$ 366,560
Gross Unrealized Gains	7,714		2,519
Gross Unrealized (Losses)	(230)		(972)
Allowance for credit losses	(54)	$ (58)
Estimated Fair Value	304,927		368,107
Agency mortgage-backed securities
Securities held-to-maturity:
Amortized Cost	228,652		285,344
Gross Unrealized Gains	6,075		1,206
Gross Unrealized (Losses)	(230)		(968)
Estimated Fair Value	234,497		285,582
Municipals - exempt from Federal tax
Securities held-to-maturity:
Amortized Cost	68,791		81,216
Gross Unrealized Gains	1,639		1,313
Gross Unrealized (Losses)			(4)
Allowance for credit losses	(54)
Estimated Fair Value	$ 70,430		$ 82,525

Securities - Securities with Un

Securities - Securities with Unrealized Losses - Securities Available-for-sale (Details) $ in Thousands	Dec. 31, 2019USD ($)
Available-for-sale, Fair Value
Less Than 12 Months	$ 100,816
12 Months or More	27,534
Total	128,350
Available-for-sale, Unrealized (Losses)
Less Than 12 Months	(105)
12 Months or More	(66)
Total	(171)
Agency mortgage-backed securities
Available-for-sale, Fair Value
Less Than 12 Months	100,816
12 Months or More	27,534
Total	128,350
Available-for-sale, Unrealized (Losses)
Less Than 12 Months	(105)
12 Months or More	(66)
Total	$ (171)

Securities - Securities with _2

Securities - Securities with Unrealized Losses - Securities Held-to-maturity (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Held-to-maturity, Fair Value
Less Than 12 Months	$ 30,930,000	$ 51,616,000
12 Months or More		88,128,000
Total	30,930,000	139,744,000
Held-to-maturity, Unrealized (Losses)
Less Than 12 Months	(230,000)	(182,000)
12 Months or More		(790,000)
Total	(230,000)	(972,000)
Agency mortgage-backed securities
Held-to-maturity, Fair Value
Less Than 12 Months	30,930,000	50,060,000
12 Months or More		88,128,000
Total	30,930,000	138,188,000
Held-to-maturity, Unrealized (Losses)
Less Than 12 Months	(230,000)	(178,000)
12 Months or More		(790,000)
Total	$ (230,000)	(968,000)
Municipals - exempt from Federal tax
Held-to-maturity, Fair Value
Less Than 12 Months		1,556,000
Total		1,556,000
Held-to-maturity, Unrealized (Losses)
Less Than 12 Months		(4,000)
Total		$ (4,000)

Securities - Additional Informa

Securities - Additional Information (Details)	12 Months Ended
Securities - Additional Information (Details)	Dec. 31, 2020USD ($)securityitem	Dec. 31, 2019USD ($)
Additional Information
The number of holdings of securities of any one issuer other than the U.S. Government and its sponsored entities \| security	0
Holdings of securities as percentage of shareholders' equity, considered as threshold for disclosure purpose	10.00%
Number of securities held \| item	407
Number of available for sale securities held \| item	116
Number of held to maturity securities held \| item	291
Number of securities with fair values below amortized cost \| item	5
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value \| $	$ 30,930,000	$ 139,744,000
Total unrealized loss for securities less than 12 months \| $	(230,000)
Agency mortgage-backed securities
Additional Information
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value \| $	$ 30,930,000	138,188,000
Municipals - exempt from Federal tax
Additional Information
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value \| $		$ 1,556,000

Securities - Proceeds from Sale

Securities - Proceeds from Sales of Securities and the Resulting Gains and Losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Proceeds from Sales of Securities and the Resulting Gains and Losses
Proceeds	$ 56,598	$ 167,551	$ 94,291
Gross gains	$ 277	1,094	1,243
Gross losses		$ (433)	$ (977)

Securities - Amortized Cost a_3

Securities - Amortized Cost and Fair Value of Debt Securities by Contractual Maturity - Securities Available-for-sale (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Available-for-sale, Amortized Cost
Due 3 months or less	$ 14,988
Due after 3 months through one year	44,809
Agency mortgage-backed securities	170,215
Total	230,012	$ 402,537
Available-for-sale, Estimated Fair Value
Due 3 months or less	15,039
Due after 3 months through one year	45,409
Agency mortgage-backed securities	175,326
Total	$ 235,774	$ 404,825

Securities - Amortized Cost a_4

Securities - Amortized Cost and Fair Value of Debt Securities by Contractual Maturity - Securities Held-to-maturity (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Held-to-maturity, Amortized Cost
Due after 3 months through one year	$ 493
Due after one year through five years	10,390
Due after five years through ten years	31,509
Due after ten years	26,399
Agency mortgage-backed securities	228,652
Total	297,443
Held-to-maturity, Estimated Fair Value
Due after 3 months through one year	499
Due after one year through five years	10,757
Due after five years through ten years	32,149
Due after ten years	27,025
Agency mortgage-backed securities	234,497
Total	$ 304,927	$ 368,107

Securities - Securities Pledged

Securities - Securities Pledged to Secure Public Deposits and for Other Purposes (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Securities Pledged to Secure Public Deposits and for Other Purposes
Amortized cost of securities pledged to secure public deposits and for other purposes as required or permitted by law or contract	$ 40,238,000	$ 32,773,000

Securities - Roll-forward by ma

Securities - Roll-forward by major security type (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Schedule of Held-to-maturity Securities [Line Items]
Shareholder's equity	$ 577,889,000	$ 576,708,000	$ 367,466,000	$ 271,239,000
Provision (credit) for credit loss	(4,000)
Debt Securities, Held-to-maturity, Allowance for Credit Loss, Ending Balance	54,000
ASU 2016-03 - Topic 326
Schedule of Held-to-maturity Securities [Line Items]
Shareholder's equity	58,000
Adjustment
Schedule of Held-to-maturity Securities [Line Items]
Shareholder's equity		(6,062,000)
Restatement Adjustment \| ASU 2016-03 - Topic 326
Schedule of Held-to-maturity Securities [Line Items]
Debt Securities, Held-to-maturity, Allowance for Credit Loss, Beginning Balance	$ 58,000
Shareholder's equity		$ 2,359,000

Loans and Allowance for Credi_3

Loans and Allowance for Credit Losses on Loans - Loans Balance (Details) - USD ($)	Dec. 31, 2020	Jan. 01, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Loans held-for-investment:
Total loan balance	$ 2,625,987,000	$ 31,855,000	$ 2,534,163,000
Deferred loan fees, net	(6,726,000)		(319,000)
Loans, net of deferred fees	2,619,261,000		2,533,844,000	$ 1,886,405,000
Allowance for credit losses on loans(1)	(44,400,000)	(31,855,000)	(23,285,000)	(27,848,000)	$ (19,658,000)
Loans, net	2,574,861,000		2,510,559,000
Commercial
Loans held-for-investment:
Total loan balance			603,345,000
Allowance for credit losses on loans(1)			(10,453,000)	(17,061,000)	(10,608,000)
Real estate
Loans held-for-investment:
Total loan balance			1,897,074,000
Allowance for credit losses on loans(1)			(12,750,000)	(10,671,000)	(8,950,000)
Consumer
Loans held-for-investment:
Total loan balance			33,744,000
Allowance for credit losses on loans(1)			(82,000)	$ (116,000)	$ (100,000)
Commercial
Loans held-for-investment:
Total loan balance	846,386,000	6,790,000	603,345,000
Allowance for credit losses on loans(1)	(11,587,000)	(6,790,000)	(10,453,000)
Commercial \| Commercial
Loans held-for-investment:
Total loan balance	846,386,000		603,345,000
SBA Paycheck Protection Program ("PPP") loans \| Commercial
Loans held-for-investment:
Total loan balance	290,679,000
CRE - owner occupied
Loans held-for-investment:
Total loan balance	560,362,000	6,994,000	548,907,000
Allowance for credit losses on loans(1)	(8,560,000)	(6,994,000)	(3,825,000)
CRE - owner occupied \| Real estate
Loans held-for-investment:
Total loan balance	560,362,000		548,907,000
CRE - non-owner occupied
Loans held-for-investment:
Total loan balance	693,103,000	11,672,000	767,821,000
Allowance for credit losses on loans(1)	(16,416,000)	(11,672,000)	(3,760,000)
CRE - non-owner occupied \| Real estate
Loans held-for-investment:
Total loan balance	693,103,000		767,821,000
Land and construction
Loans held-for-investment:
Total loan balance	144,594,000	1,458,000	147,189,000
Allowance for credit losses on loans(1)	(2,509,000)	(1,458,000)	(2,621,000)
Land and construction \| Real estate
Loans held-for-investment:
Total loan balance	144,594,000		147,189,000
Home equity
Loans held-for-investment:
Total loan balance	111,885,000	1,321,000	151,775,000
Allowance for credit losses on loans(1)	(1,297,000)	(1,321,000)	(2,244,000)
Home equity \| Real estate
Loans held-for-investment:
Total loan balance	111,885,000		151,775,000
Multi-family
Loans held-for-investment:
Total loan balance	166,425,000	1,253,000	180,623,000
Allowance for credit losses on loans(1)	(2,804,000)	(1,253,000)	(57,000)
Multi-family \| Real estate
Loans held-for-investment:
Total loan balance	166,425,000		180,623,000
Residential mortgages
Loans held-for-investment:
Total loan balance	85,116,000	678,000	100,759,000
Allowance for credit losses on loans(1)	(943,000)	(678,000)	(243,000)
Residential mortgages \| Real estate
Loans held-for-investment:
Total loan balance	85,116,000		100,759,000
Consumer and other
Loans held-for-investment:
Total loan balance	18,116,000	1,689,000	33,744,000
Allowance for credit losses on loans(1)	(284,000)	$ (1,689,000)	(82,000)
Consumer and other \| Consumer
Loans held-for-investment:
Total loan balance	$ 18,116,000		33,744,000
ASU 2016-03 - Topic 326
Loans held-for-investment:
Allowance for credit losses on loans(1)			8,570,000
ASU 2016-03 - Topic 326 \| Commercial
Loans held-for-investment:
Allowance for credit losses on loans(1)			(3,663,000)
ASU 2016-03 - Topic 326 \| CRE - owner occupied
Loans held-for-investment:
Allowance for credit losses on loans(1)			3,169,000
ASU 2016-03 - Topic 326 \| CRE - non-owner occupied
Loans held-for-investment:
Allowance for credit losses on loans(1)			7,912,000
ASU 2016-03 - Topic 326 \| Land and construction
Loans held-for-investment:
Allowance for credit losses on loans(1)			(1,163,000)
ASU 2016-03 - Topic 326 \| Home equity
Loans held-for-investment:
Allowance for credit losses on loans(1)			(923,000)
ASU 2016-03 - Topic 326 \| Multi-family
Loans held-for-investment:
Allowance for credit losses on loans(1)			1,196,000
ASU 2016-03 - Topic 326 \| Residential mortgages
Loans held-for-investment:
Allowance for credit losses on loans(1)			435,000
ASU 2016-03 - Topic 326 \| Consumer and other
Loans held-for-investment:
Allowance for credit losses on loans(1)			1,607,000
Restatement Adjustment \| ASU 2016-03 - Topic 326
Loans held-for-investment:
Total loan balance			8,570,000
Allowance for credit losses on loans(1)			(8,570,000)
Restatement Adjustment \| ASU 2016-03 - Topic 326 \| Commercial
Loans held-for-investment:
Total loan balance			(3,663,000)
Restatement Adjustment \| ASU 2016-03 - Topic 326 \| CRE - owner occupied
Loans held-for-investment:
Total loan balance			3,169,000
Restatement Adjustment \| ASU 2016-03 - Topic 326 \| CRE - non-owner occupied
Loans held-for-investment:
Total loan balance			7,912,000
Restatement Adjustment \| ASU 2016-03 - Topic 326 \| Land and construction
Loans held-for-investment:
Total loan balance			(1,163,000)
Restatement Adjustment \| ASU 2016-03 - Topic 326 \| Home equity
Loans held-for-investment:
Total loan balance			(923,000)
Restatement Adjustment \| ASU 2016-03 - Topic 326 \| Multi-family
Loans held-for-investment:
Total loan balance			1,196,000
Restatement Adjustment \| ASU 2016-03 - Topic 326 \| Residential mortgages
Loans held-for-investment:
Total loan balance			435,000
Restatement Adjustment \| ASU 2016-03 - Topic 326 \| Consumer and other
Loans held-for-investment:
Total loan balance			1,607,000
Previously Reported \| ASU 2016-03 - Topic 326
Loans held-for-investment:
Total loan balance			23,285,000
Previously Reported \| ASU 2016-03 - Topic 326 \| Commercial
Loans held-for-investment:
Total loan balance			10,453,000
Previously Reported \| ASU 2016-03 - Topic 326 \| CRE - owner occupied
Loans held-for-investment:
Total loan balance			3,825,000
Previously Reported \| ASU 2016-03 - Topic 326 \| CRE - non-owner occupied
Loans held-for-investment:
Total loan balance			3,760,000
Previously Reported \| ASU 2016-03 - Topic 326 \| Land and construction
Loans held-for-investment:
Total loan balance			2,621,000
Previously Reported \| ASU 2016-03 - Topic 326 \| Home equity
Loans held-for-investment:
Total loan balance			2,244,000
Previously Reported \| ASU 2016-03 - Topic 326 \| Multi-family
Loans held-for-investment:
Total loan balance			57,000
Previously Reported \| ASU 2016-03 - Topic 326 \| Residential mortgages
Loans held-for-investment:
Total loan balance			243,000
Previously Reported \| ASU 2016-03 - Topic 326 \| Consumer and other
Loans held-for-investment:
Total loan balance			$ 82,000

Loans and Allowance for Credi_4

Loans and Allowance for Credit Losses on Loans - Changes in the Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Changes in the Allowance for Loan Losses
Beginning of period balance				$ 23,285				$ 27,848	$ 23,285	$ 27,848	$ 19,658
Charge-offs									(1,880)	(6,623)	(2,026)
Recoveries									1,192	1,214	2,795
Net (charge-offs) recoveries									(688)	(5,409)	769
Provision (recapture) for credit losses on loans	$ (1,348)	$ 197	$ 1,114	13,270	$ 3,223	$ (576)	$ (740)	(1,061)	13,233	846	7,421
End of period balance	44,400				23,285				44,400	23,285	27,848
ASU 2016-03 - Topic 326
Changes in the Allowance for Loan Losses
Beginning of period balance				(8,570)					(8,570)
End of period balance					(8,570)					(8,570)
Commercial
Changes in the Allowance for Loan Losses
Beginning of period balance				10,453				17,061	10,453	17,061	10,608
Charge-offs										(6,609)	(2,002)
Recoveries										1,045	2,645
Net (charge-offs) recoveries										(5,564)	643
Provision (recapture) for credit losses on loans										(1,044)	5,810
End of period balance					10,453					10,453	17,061
Real estate
Changes in the Allowance for Loan Losses
Beginning of period balance				12,750				10,671	12,750	10,671	8,950
Recoveries										169	150
Net (charge-offs) recoveries										169	150
Provision (recapture) for credit losses on loans										1,910	1,571
End of period balance					12,750					12,750	10,671
Consumer
Changes in the Allowance for Loan Losses
Beginning of period balance				82				$ 116	82	116	100
Charge-offs										(14)	(24)
Net (charge-offs) recoveries										(14)	(24)
Provision (recapture) for credit losses on loans										(20)	40
End of period balance					82					82	$ 116
Commercial
Changes in the Allowance for Loan Losses
Beginning of period balance				10,453					10,453
Charge-offs									(1,776)
Recoveries									998
Net (charge-offs) recoveries									(778)
Provision (recapture) for credit losses on loans									5,575
End of period balance	11,587				10,453				11,587	10,453
Commercial \| ASU 2016-03 - Topic 326
Changes in the Allowance for Loan Losses
Beginning of period balance				3,663					3,663
End of period balance					3,663					3,663
CRE - owner occupied
Changes in the Allowance for Loan Losses
Beginning of period balance				3,825					3,825
Recoveries									1
Net (charge-offs) recoveries									1
Provision (recapture) for credit losses on loans									1,565
End of period balance	8,560				3,825				8,560	3,825
CRE - owner occupied \| ASU 2016-03 - Topic 326
Changes in the Allowance for Loan Losses
Beginning of period balance				(3,169)					(3,169)
End of period balance					(3,169)					(3,169)
CRE - non-owner occupied
Changes in the Allowance for Loan Losses
Beginning of period balance				3,760					3,760
Provision (recapture) for credit losses on loans									4,744
End of period balance	16,416				3,760				16,416	3,760
CRE - non-owner occupied \| ASU 2016-03 - Topic 326
Changes in the Allowance for Loan Losses
Beginning of period balance				(7,912)					(7,912)
End of period balance					(7,912)					(7,912)
Land and construction
Changes in the Allowance for Loan Losses
Beginning of period balance				2,621					2,621
Recoveries									70
Net (charge-offs) recoveries									70
Provision (recapture) for credit losses on loans									981
End of period balance	2,509				2,621				2,509	2,621
Land and construction \| ASU 2016-03 - Topic 326
Changes in the Allowance for Loan Losses
Beginning of period balance				1,163					1,163
End of period balance					1,163					1,163
Home equity
Changes in the Allowance for Loan Losses
Beginning of period balance				2,244					2,244
Recoveries									93
Net (charge-offs) recoveries									93
Provision (recapture) for credit losses on loans									(117)
End of period balance	1,297				2,244				1,297	2,244
Home equity \| ASU 2016-03 - Topic 326
Changes in the Allowance for Loan Losses
Beginning of period balance				923					923
End of period balance					923					923
Multi-family
Changes in the Allowance for Loan Losses
Beginning of period balance				57					57
Provision (recapture) for credit losses on loans									1,551
End of period balance	2,804				57				2,804	57
Multi-family \| ASU 2016-03 - Topic 326
Changes in the Allowance for Loan Losses
Beginning of period balance				(1,196)					(1,196)
End of period balance					(1,196)					(1,196)
Residential mortgages
Changes in the Allowance for Loan Losses
Beginning of period balance				243					243
Provision (recapture) for credit losses on loans									265
End of period balance	943				243				943	243
Residential mortgages \| ASU 2016-03 - Topic 326
Changes in the Allowance for Loan Losses
Beginning of period balance				(435)					(435)
End of period balance					(435)					(435)
Consumer and other
Changes in the Allowance for Loan Losses
Beginning of period balance				82					82
Charge-offs									(104)
Recoveries									30
Net (charge-offs) recoveries									(74)
Provision (recapture) for credit losses on loans									(1,331)
End of period balance	$ 284				82				284	82
Consumer and other \| ASU 2016-03 - Topic 326
Changes in the Allowance for Loan Losses
Beginning of period balance				$ (1,607)					$ (1,607)
End of period balance					$ (1,607)					$ (1,607)

Loans and Allowance for Credi_5

Loans and Allowance for Credit Losses on Loans - Balance in the Allowance for Loan Losses and the Recorded Investment in Loans by Portfolio Segment, Based on the Impairment Method (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Jan. 01, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Balance in the Allowance for Loan Losses and the Recorded Investment in Loans by Portfolio Segment, Based on the Impairment Method
Allowance for loan losses, Individually evaluated for impairment			$ 1,835
Allowance for loan losses, Collectively evaluated for impairment			21,450
Total allowance balance	$ 44,400	$ 31,855	23,285	$ 27,848	$ 19,658
Loans, Individually evaluated for impairment			10,264
Loans, Collectively evaluated for impairment			2,523,899
Total loan balance	$ 2,625,987	$ 31,855	2,534,163
Commercial
Balance in the Allowance for Loan Losses and the Recorded Investment in Loans by Portfolio Segment, Based on the Impairment Method
Allowance for loan losses, Individually evaluated for impairment			1,835
Allowance for loan losses, Collectively evaluated for impairment			8,618
Total allowance balance			10,453	17,061	10,608
Loans, Individually evaluated for impairment			4,810
Loans, Collectively evaluated for impairment			598,535
Total loan balance			603,345
Real estate
Balance in the Allowance for Loan Losses and the Recorded Investment in Loans by Portfolio Segment, Based on the Impairment Method
Allowance for loan losses, Collectively evaluated for impairment			12,750
Total allowance balance			12,750	10,671	8,950
Loans, Individually evaluated for impairment			5,454
Loans, Collectively evaluated for impairment			1,891,620
Total loan balance			1,897,074
Consumer
Balance in the Allowance for Loan Losses and the Recorded Investment in Loans by Portfolio Segment, Based on the Impairment Method
Allowance for loan losses, Collectively evaluated for impairment			82
Total allowance balance			82	$ 116	$ 100
Loans, Collectively evaluated for impairment			33,744
Total loan balance			$ 33,744

Loans and Allowance for Credi_6

Loans and Allowance for Credit Losses on Loans - Nonaccrual Status and Loans Past Due Over 90 Days (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Nonperforming Loans by Class
Nonaccrual Financing Receivable, no special allowance	$ 5,814
Nonaccrual Financing Receivable, with special allowance	1,974
Nonaccrual loans		$ 8,675
Loans Over 90 Days Past Due and Still Accruing	81	1,153
Total	7,869	9,828
Commercial
Nonperforming Loans by Class
Nonaccrual Financing Receivable, no special allowance	752
Nonaccrual Financing Receivable, with special allowance	1,974
Nonaccrual loans		3,444
Loans Over 90 Days Past Due and Still Accruing	81	1,153
Total	2,807	4,597
CRE
Nonperforming Loans by Class
Nonaccrual loans		5,094
Total		5,094
CRE - owner occupied
Nonperforming Loans by Class
Nonaccrual Financing Receivable, no special allowance	3,706
Total	3,706
Home equity
Nonperforming Loans by Class
Nonaccrual Financing Receivable, no special allowance	949
Nonaccrual loans		137
Total	949	$ 137
Consumer and other
Nonperforming Loans by Class
Nonaccrual Financing Receivable, no special allowance	407
Total	$ 407

Loans and Allowance for Credi_7

Loans and Allowance for Credit Losses on Loans - Aging of Past Due Loans by Class of Loans (Details) - USD ($)	Dec. 31, 2020	Jan. 01, 2020	Dec. 31, 2019
Aging of Past Due Loans by Class of Loans
Total Past Due	$ 6,229,000		$ 15,315,000
Current	2,619,758,000		2,518,848,000
Total loan balance	2,625,987,000	$ 31,855,000	2,534,163,000
30-59 Days Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	4,657,000		4,770,000
60-89 Days Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	744,000		2,234,000
90 Days or Greater Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	828,000		8,311,000
Commercial
Aging of Past Due Loans by Class of Loans
Total loan balance			603,345,000
Real estate
Aging of Past Due Loans by Class of Loans
Total loan balance			1,897,074,000
Consumer
Aging of Past Due Loans by Class of Loans
Total loan balance			33,744,000
Commercial
Aging of Past Due Loans by Class of Loans
Total Past Due			10,084,000
Current			593,261,000
Total loan balance	846,386,000	6,790,000	603,345,000
Commercial \| 30-59 Days Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due			4,770,000
Commercial \| 60-89 Days Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due			2,097,000
Commercial \| 90 Days or Greater Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due			3,217,000
Commercial \| Commercial
Aging of Past Due Loans by Class of Loans
Total Past Due	4,175,000
Current	842,211,000
Total loan balance	846,386,000		603,345,000
Commercial \| Commercial \| 30-59 Days Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	3,524,000
Commercial \| Commercial \| 60-89 Days Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	259,000
Commercial \| Commercial \| 90 Days or Greater Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	392,000
CRE - owner occupied
Aging of Past Due Loans by Class of Loans
Total Past Due			5,094,000
Current			543,813,000
Total loan balance	560,362,000	6,994,000	548,907,000
CRE - owner occupied \| 90 Days or Greater Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due			5,094,000
CRE - owner occupied \| Real estate
Aging of Past Due Loans by Class of Loans
Total Past Due	1,162,000
Current	559,200,000
Total loan balance	560,362,000		548,907,000
CRE - owner occupied \| Real estate \| 30-59 Days Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	1,133,000
CRE - owner occupied \| Real estate \| 90 Days or Greater Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	29,000
CRE - non-owner occupied
Aging of Past Due Loans by Class of Loans
Current			767,821,000
Total loan balance	693,103,000	11,672,000	767,821,000
CRE - non-owner occupied \| Real estate
Aging of Past Due Loans by Class of Loans
Total Past Due	485,000
Current	692,618,000
Total loan balance	693,103,000		767,821,000
CRE - non-owner occupied \| Real estate \| 60-89 Days Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	485,000
Land and construction
Aging of Past Due Loans by Class of Loans
Current			147,189,000
Total loan balance	144,594,000	1,458,000	147,189,000
Land and construction \| Real estate
Aging of Past Due Loans by Class of Loans
Current	144,594,000
Total loan balance	144,594,000		147,189,000
Home equity
Aging of Past Due Loans by Class of Loans
Total Past Due			137,000
Current			151,638,000
Total loan balance	111,885,000	1,321,000	151,775,000
Home equity \| 60-89 Days Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due			137,000
Home equity \| Real estate
Aging of Past Due Loans by Class of Loans
Current	111,885,000
Total loan balance	111,885,000		151,775,000
Multi-family
Aging of Past Due Loans by Class of Loans
Current			180,623,000
Total loan balance	166,425,000	1,253,000	180,623,000
Multi-family \| Real estate
Aging of Past Due Loans by Class of Loans
Current	166,425,000
Total loan balance	166,425,000		180,623,000
Residential mortgages
Aging of Past Due Loans by Class of Loans
Current			100,759,000
Total loan balance	85,116,000	678,000	100,759,000
Residential mortgages \| Real estate
Aging of Past Due Loans by Class of Loans
Current	85,116,000
Total loan balance	85,116,000		100,759,000
Consumer and other
Aging of Past Due Loans by Class of Loans
Current			33,744,000
Total loan balance	18,116,000	$ 1,689,000	33,744,000
Consumer and other \| Consumer
Aging of Past Due Loans by Class of Loans
Total Past Due	407,000
Current	17,709,000
Total loan balance	18,116,000		$ 33,744,000
Consumer and other \| Consumer \| 90 Days or Greater Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	$ 407,000

Loans and Allowance for Credi_8

Loans and Allowance for Credit Losses on Loans - Aging of Past Due Loans by Class of Loans - Additional Information (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Aging of Past Due Loans by Class of Loans
Past due loans 30 day or greater	$ 6,229,000	$ 15,315,000
Nonaccrual loans		8,675,000
30 days or greater past due
Aging of Past Due Loans by Class of Loans
Nonaccrual loans	1,918,000	7,413,000
Less than 30 days past due
Aging of Past Due Loans by Class of Loans
Nonaccrual loans	$ 5,870,000	1,262,000
Commercial
Aging of Past Due Loans by Class of Loans
Past due loans 30 day or greater		10,084,000
Nonaccrual loans		3,444,000
CRE
Aging of Past Due Loans by Class of Loans
Nonaccrual loans		5,094,000
CRE - owner occupied
Aging of Past Due Loans by Class of Loans
Past due loans 30 day or greater		5,094,000
Home equity
Aging of Past Due Loans by Class of Loans
Past due loans 30 day or greater		137,000
Nonaccrual loans		$ 137,000

Loans and Allowance for Credi_9

Loans and Allowance for Credit Losses on Loans - Credit Quality Indicators (Details) - USD ($)	Dec. 31, 2020	Jan. 01, 2020	Dec. 31, 2019
Loans
2020	$ 979,432,000
2019	309,922,000
2018	191,961,000
2017	202,725,000
2016	163,654,000
2015 and Prior	326,918,000
Revolving	451,375,000
Total loan balance	2,625,987,000	$ 31,855,000	$ 2,534,163,000
Balance to report	2,574,861,000		2,510,559,000
Loan classified as loss
Loans
Balance to report	0		0
Commercial
Loans
2020	453,231,000
2019	34,122,000
2018	22,510,000
2017	15,551,000
2016	10,565,000
2015 and Prior	8,561,000
Revolving	301,846,000
Total loan balance	846,386,000	6,790,000	603,345,000
Commercial \| Pass [Member]
Loans
2020	431,369,000
2019	33,350,000
2018	21,154,000
2017	13,840,000
2016	7,341,000
2015 and Prior	8,292,000
Revolving	296,286,000
Total loan balance	811,632,000
Commercial \| Special Mention [Member]
Loans
2020	15,720,000
2019	716,000
2018	1,301,000
2017	953,000
2016	713,000
2015 and Prior	170,000
Revolving	1,937,000
Total loan balance	21,510,000
Commercial \| Substandard [Member]
Loans
2020	4,036,000
2018	19,000
2017	758,000
2016	2,396,000
2015 and Prior	73,000
Revolving	3,236,000
Total loan balance	10,518,000
Commercial \| Substandard-Nonaccrual [Member]
Loans
2020	2,106,000
2019	56,000
2018	36,000
2016	115,000
2015 and Prior	26,000
Revolving	387,000
Total loan balance	2,726,000
CRE - owner occupied
Loans
2020	177,614,000
2019	75,632,000
2018	72,596,000
2017	55,442,000
2016	50,716,000
2015 and Prior	112,398,000
Revolving	15,964,000
Total loan balance	560,362,000	6,994,000	548,907,000
CRE - owner occupied \| Pass [Member]
Loans
2020	168,224,000
2019	73,064,000
2018	68,068,000
2017	51,705,000
2016	50,716,000
2015 and Prior	109,350,000
Revolving	15,964,000
Total loan balance	537,091,000
CRE - owner occupied \| Special Mention [Member]
Loans
2020	3,151,000
2019	2,568,000
2018	4,128,000
2017	783,000
2015 and Prior	2,569,000
Total loan balance	13,199,000
CRE - owner occupied \| Substandard [Member]
Loans
2020	2,561,000
2018	400,000
2017	2,954,000
2015 and Prior	451,000
Total loan balance	6,366,000
CRE - owner occupied \| Substandard-Nonaccrual [Member]
Loans
2020	3,678,000
2015 and Prior	28,000
Total loan balance	3,706,000
CRE - non-owner occupied
Loans
2020	181,646,000
2019	128,361,000
2018	72,764,000
2017	99,816,000
2016	57,907,000
2015 and Prior	150,683,000
Revolving	1,926,000
Total loan balance	693,103,000	11,672,000	767,821,000
CRE - non-owner occupied \| Pass [Member]
Loans
2020	166,550,000
2019	128,361,000
2018	68,796,000
2017	99,816,000
2016	57,422,000
2015 and Prior	150,683,000
Revolving	1,926,000
Total loan balance	673,554,000
CRE - non-owner occupied \| Special Mention [Member]
Loans
2020	11,930,000
2018	2,557,000
Total loan balance	14,487,000
CRE - non-owner occupied \| Substandard [Member]
Loans
2020	3,166,000
2018	1,411,000
2016	485,000
Total loan balance	5,062,000
Land and construction
Loans
2020	116,291,000
2019	22,054,000
2015 and Prior	1,343,000
Revolving	4,906,000
Total loan balance	144,594,000	1,458,000	147,189,000
Land and construction \| Pass [Member]
Loans
2020	114,932,000
2019	22,054,000
2015 and Prior	1,343,000
Revolving	4,906,000
Total loan balance	143,235,000
Land and construction \| Substandard [Member]
Loans
2020	1,359,000
Total loan balance	1,359,000
Home equity
Loans
2020	383,000
2018	74,000
2015 and Prior	143,000
Revolving	111,285,000
Total loan balance	111,885,000	1,321,000	151,775,000
Home equity \| Pass [Member]
Loans
2020	266,000
2018	74,000
Revolving	109,848,000
Total loan balance	110,188,000
Home equity \| Substandard [Member]
Loans
2015 and Prior	143,000
Revolving	605,000
Total loan balance	748,000
Home equity \| Substandard-Nonaccrual [Member]
Loans
2020	117,000
Revolving	832,000
Total loan balance	949,000
Multi-family
Loans
2020	32,370,000
2019	39,183,000
2018	17,248,000
2017	24,572,000
2016	16,235,000
2015 and Prior	35,937,000
Revolving	880,000
Total loan balance	166,425,000	1,253,000	180,623,000
Multi-family \| Pass [Member]
Loans
2020	31,481,000
2019	39,183,000
2018	17,248,000
2017	24,572,000
2016	16,235,000
2015 and Prior	30,751,000
Revolving	880,000
Total loan balance	160,350,000
Multi-family \| Special Mention [Member]
Loans
2015 and Prior	5,186,000
Total loan balance	5,186,000
Multi-family \| Substandard [Member]
Loans
2020	889,000
Total loan balance	889,000
Residential mortgages
Loans
2020	17,887,000
2019	10,048,000
2018	4,876,000
2017	7,324,000
2016	28,115,000
2015 and Prior	16,866,000
Total loan balance	85,116,000	678,000	100,759,000
Residential mortgages \| Pass [Member]
Loans
2020	12,798,000
2019	10,048,000
2018	3,246,000
2017	7,324,000
2016	28,115,000
2015 and Prior	15,568,000
Total loan balance	77,099,000
Residential mortgages \| Special Mention [Member]
Loans
2020	5,089,000
2018	1,630,000
Total loan balance	6,719,000
Residential mortgages \| Substandard [Member]
Loans
2015 and Prior	1,298,000
Total loan balance	1,298,000
Consumer and other
Loans
2020	10,000
2019	522,000
2018	1,893,000
2017	20,000
2016	116,000
2015 and Prior	987,000
Revolving	14,568,000
Total loan balance	18,116,000	$ 1,689,000	$ 33,744,000
Consumer and other \| Pass [Member]
Loans
2020	10,000
2019	522,000
2018	1,486,000
2017	20,000
2016	116,000
2015 and Prior	987,000
Revolving	14,568,000
Total loan balance	17,709,000
Consumer and other \| Substandard-Nonaccrual [Member]
Loans
2018	407,000
Total loan balance	407,000
Risk Grades [Member]
Loans
2020	979,432,000
2019	309,922,000
2018	191,961,000
2017	202,725,000
2016	163,654,000
2015 and Prior	326,918,000
Revolving	451,375,000
Total loan balance	2,625,987,000
Risk Grades [Member] \| Pass [Member]
Loans
2020	925,630,000
2019	306,582,000
2018	180,072,000
2017	197,277,000
2016	159,945,000
2015 and Prior	316,974,000
Revolving	444,378,000
Total loan balance	2,530,858,000
Risk Grades [Member] \| Special Mention [Member]
Loans
2020	35,890,000
2019	3,284,000
2018	9,616,000
2017	1,736,000
2016	713,000
2015 and Prior	7,925,000
Revolving	1,937,000
Total loan balance	61,101,000
Risk Grades [Member] \| Substandard [Member]
Loans
2020	12,011,000
2018	1,830,000
2017	3,712,000
2016	2,881,000
2015 and Prior	1,965,000
Revolving	3,841,000
Total loan balance	26,240,000
Risk Grades [Member] \| Substandard-Nonaccrual [Member]
Loans
2020	5,901,000
2019	56,000
2018	443,000
2016	115,000
2015 and Prior	54,000
Revolving	1,219,000
Total loan balance	$ 7,788,000

Loans and Allowance for Cred_10

Loans and Allowance for Credit Losses on Loans - Credit Quality Classification (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Jan. 01, 2020	Dec. 31, 2019
Loans
Total	$ 2,625,987	$ 31,855	$ 2,534,163
Nonclassified
Loans
Total			2,501,584
Classified
Loans
Total			32,579
Commercial
Loans
Total			603,345
Real estate
Loans
Total			1,897,074
Consumer
Loans
Total			33,744
Commercial
Loans
Total	846,386	6,790	603,345
Commercial \| Commercial
Loans
Total	846,386		603,345
Commercial \| Commercial \| Nonclassified
Loans
Total			599,143
Commercial \| Commercial \| Classified
Loans
Total			4,202
CRE - owner occupied
Loans
Total	560,362	6,994	548,907
CRE - owner occupied \| Real estate
Loans
Total	560,362		548,907
CRE - owner occupied \| Real estate \| Nonclassified
Loans
Total			538,229
CRE - owner occupied \| Real estate \| Classified
Loans
Total			10,678
CRE - non-owner occupied
Loans
Total	693,103	11,672	767,821
CRE - non-owner occupied \| Real estate
Loans
Total	693,103		767,821
CRE - non-owner occupied \| Real estate \| Nonclassified
Loans
Total			761,801
CRE - non-owner occupied \| Real estate \| Classified
Loans
Total			6,020
Land and construction
Loans
Total	144,594	1,458	147,189
Land and construction \| Real estate
Loans
Total	144,594		147,189
Land and construction \| Real estate \| Nonclassified
Loans
Total			144,108
Land and construction \| Real estate \| Classified
Loans
Total			3,081
Home equity
Loans
Total	111,885	1,321	151,775
Home equity \| Real estate
Loans
Total	111,885		151,775
Home equity \| Real estate \| Nonclassified
Loans
Total			149,131
Home equity \| Real estate \| Classified
Loans
Total			2,644
Multi-family
Loans
Total	166,425	1,253	180,623
Multi-family \| Real estate
Loans
Total	166,425		180,623
Multi-family \| Real estate \| Nonclassified
Loans
Total			180,623
Residential mortgages
Loans
Total	85,116	678	100,759
Residential mortgages \| Real estate
Loans
Total	85,116		100,759
Residential mortgages \| Real estate \| Nonclassified
Loans
Total			100,262
Residential mortgages \| Real estate \| Classified
Loans
Total			497
Consumer and other
Loans
Total	18,116	$ 1,689	33,744
Consumer and other \| Consumer
Loans
Total	$ 18,116		33,744
Consumer and other \| Consumer \| Nonclassified
Loans
Total			28,287
Consumer and other \| Consumer \| Classified
Loans
Total			$ 5,457

Loans and Allowance for Cred_11

Loans and Allowance for Credit Losses on Loans - Amortized Cost Basis of Collateral-dependent Loans (Details) $ in Thousands	Dec. 31, 2020USD ($)
Financing Receivable, Recorded Investment, Past Due [Line Items]
Collateral dependent loans	$ 1,974
Real Estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Collateral dependent loans	29
Business Assets
Financing Receivable, Recorded Investment, Past Due [Line Items]
Collateral dependent loans	1,815
Uncollateralized
Financing Receivable, Recorded Investment, Past Due [Line Items]
Collateral dependent loans	130
Commercial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Collateral dependent loans	1,974
Commercial \| Real Estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Collateral dependent loans	29
Commercial \| Business Assets
Financing Receivable, Recorded Investment, Past Due [Line Items]
Collateral dependent loans	1,815
Commercial \| Uncollateralized
Financing Receivable, Recorded Investment, Past Due [Line Items]
Collateral dependent loans	$ 130

Loans and Allowance for Cred_12

Loans and Allowance for Credit Losses on Loans - Allowance for loan losses and recorded investment in loans individually evaluated by loan classification and by impairment method (Details) $ in Thousands	Dec. 31, 2019USD ($)
Unpaid Principal Balance
Total with no related allowance recorded	$ 7,567
Total with an allowance recorded	2,697
Total	10,264
Recorded Investment
Total with no related allowance recorded	7,567
Total with an allowance recorded	2,697
Total	10,264
Total with an allowance recorded, Allowance for Loan Losses Allocated	1,835
Commercial
Unpaid Principal Balance
Total with no related allowance recorded	2,113
Total with an allowance recorded	2,697
Recorded Investment
Total with no related allowance recorded	2,113
Total with an allowance recorded	2,697
Total with an allowance recorded, Allowance for Loan Losses Allocated	1,835
Home equity
Unpaid Principal Balance
Total with no related allowance recorded	360
Recorded Investment
Total with no related allowance recorded	360
CRE
Unpaid Principal Balance
Total with no related allowance recorded	5,094
Recorded Investment
Total with no related allowance recorded	$ 5,094

Loans and Allowance for Cred_13

Loans and Allowance for Credit Losses on Loans - Troubled Debt Restructurings (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Allowance for Credit Losses on Loans
Recorded investment of troubled debt restructurings	$ 674,000	$ 1,039,000
Troubled debt restructurings, nonaccrual loans	468,000	590,000
Troubled debt restructurings, accruing loans	206,000	449,000
Specific reserves	352,000	$ 20,000
Additional loan committed on any loans classified as troubled debt restructuring.	$ 0

Loans and Allowance for Cred_14

Loans and Allowance for Credit Losses on Loans - Troubled Debt Restructurings by Class (Details)	12 Months Ended
	Dec. 31, 2020contract	Dec. 31, 2020USD ($)	Dec. 31, 2020loan	Dec. 31, 2019USD ($)contract
Troubled Debt Restructurings by Class
Number of loans modified as troubled debt restructurings during the period	15		15	3
Pre-modification Outstanding Recorded Investment		$ 630,000		$ 591,000
Post-modification Outstanding Recorded Investment		630,000		$ 591,000
Commercial
Troubled Debt Restructurings by Class
Number of loans modified as troubled debt restructurings during the period \| contract	15			3
Pre-modification Outstanding Recorded Investment		630,000		$ 591,000
Post-modification Outstanding Recorded Investment		$ 630,000		$ 591,000

Loans and Allowance for Cred_15

Loans and Allowance for Credit Losses on Loans - Defaults on Troubled Debt Restructurings (Details)	12 Months Ended				24 Months Ended
	Dec. 31, 2020USD ($)	Dec. 31, 2020USD ($)contract	Dec. 31, 2020USD ($)loan	Dec. 31, 2019USD ($)contract	Dec. 31, 2020USD ($)item
Allowance for Credit Losses on Loans
Number of loans modified as troubled debt restructurings during the period		15	15	3
Recorded investment of troubled debt restructurings \| $	$ 674,000	$ 674,000	$ 674,000	$ 1,039,000	$ 674,000
Default period contractually past due under modified terms (in days)	30 days
Number of defaults on troubled debt restructurings \| item					0
Period of consecutive payments (in months)	6 months

Loans and Allowance for Cred_16

Loans and Allowance for Credit Losses on Loans - Schedule of loan deferrals by loan category (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Loans, net	$ 2,574,861	$ 2,510,559
Initial deferment period	3 months
2nd deferment period	3 months
Collateral Pledged
Loans, net	$ 2,552
Real Estate
Loans, net	2,257
Business Assets
Loans, net	295
Initial Deferments \| Collateral Pledged
Loans, net	1,573
Initial Deferments \| Real Estate
Loans, net	1,573
2nd Deferments \| Collateral Pledged
Loans, net	979
2nd Deferments \| Real Estate
Loans, net	684
2nd Deferments \| Business Assets
Loans, net	$ 295

Loan Servicing - SBA Loans (Det

Loan Servicing - SBA Loans (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Allowance for Credit Losses on Loans
Serviced SBA loans sold to secondary market	$ 77,973,000	$ 87,835,000	$ 104,016,000
Weighted average servicing rate for loans serviced (as a percent)	1.12%	1.16%	1.12%

Loan Servicing - Activity for L

Loan Servicing - Activity for Loan Servicing Rights (Details) - Loan servicing rights - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Activity for Loan Servicing Rights
Balance, beginning of year	$ 583	$ 871	$ 1,373
Additions	213	157	200
Amortization	(265)	(445)	(702)
Balance, end of year	$ 531	$ 583	$ 871

Loan Servicing - Loan Servicing

Loan Servicing - Loan Servicing Rights - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Loan Servicing
Carrying amount/fair value	$ 1,172,000	$ 1,295,000	$ 1,651,000
Prepayment speed assumption (annual rate) (as a percent)	14.65%	13.50%	10.89%
Residual cash flow discount rate assumption (annual) (as a percent)	12.91%	15.90%	16.40%
Loan servicing rights
Loan Servicing
Valuation allowance	$ 0	$ 0	$ 0

Loan Servicing - Activity for I

Loan Servicing - Activity for I/O Strip Receivables (Details) - I/O strip receivables - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Activity for I/O Strip Receivables
Balance, beginning of year	$ 503	$ 568	$ 968
Unrealized loss	(198)	(65)	(400)
Balance, end of year	$ 305	$ 503	$ 568

Premises and Equipment - Premis

Premises and Equipment - Premises and Equipment, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Premises and Equipment
Premises and equipment, gross	$ 25,855	$ 23,847
Accumulated depreciation and amortization	(15,396)	(15,597)
Premises and equipment, net	10,459	8,250
Building
Premises and Equipment
Premises and equipment, gross	3,508	3,508
Land
Premises and Equipment
Premises and equipment, gross	2,900	2,900
Furniture and equipment
Premises and Equipment
Premises and equipment, gross	12,721	10,067
Leasehold improvements
Premises and Equipment
Premises and equipment, gross	$ 6,726	$ 7,372

Premises and Equipment - Deprec

Premises and Equipment - Depreciation and Amortization Expense (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Premises and Equipment
Depreciation and amortization	$ 951,000	$ 846,000	$ 753,000

Leases (Details)

Leases (Details)	3 Months Ended	12 Months Ended
Leases (Details)	Dec. 31, 2019USD ($)	Dec. 31, 2020USD ($)	Dec. 31, 2019USD ($)	Jun. 30, 2019ft²
Lessee, Lease, Description [Line Items]
Lessee, Operating Lease, Option to renew		true
Operating Lease Cost (Cost resulting from lease payments)		$ 6,837,000	$ 1,490,000
Operating Lease - Operating Cash Flows (Fixed Payments)		5,572,000	1,519,000
Operating Lease - ROU assets	$ 12,173,000	35,873,000	12,173,000
Operating Lease - Liabilities	$ 13,032,000	$ 35,873,000	$ 13,032,000
Operating Lease, Liability, Statement of Financial Position [Extensible List]	Operating Lease - Liabilities	Operating Lease - Liabilities	Operating Lease - Liabilities
Weighted Average Lease Term - Operating Leases		8 years 3 months 18 days	4 years 9 months 14 days
Weighted Average Discount Rate - Operating Leases	3.86%	4.55%	3.86%
Area of office space \| ft²				54,910
Wallnut creek
Lessee, Lease, Description [Line Items]
Lease impairment and write-off of fixed assets and tenant improvements	$ 434,000
San Mateo
Lessee, Lease, Description [Line Items]
Lease impairment and write-off of fixed assets and tenant improvements	$ 625,000

Leases - Maturity Analysis (Det

Leases - Maturity Analysis (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Operating Lease Payments Due
2021	$ 5,242,000
2022	5,668,000
2023	5,039,000
2024	4,692,000
2025	4,262,000
Thereafter	18,798,000
Total undiscounted cash flows	43,701,000
Discount on cash flows	(7,828,000)
Total lease liability	$ 35,873,000	$ 13,032,000

Business Combinations - Tri-Val

Business Combinations - Tri-Valley (Details) - Tri Valley Bank	Apr. 06, 2018USD ($)shares
Business Combinations
Aggregate transaction value	$ 32,320,000
Shares issued in acquisition \| shares	1,889,613
Issuance of shares of common stock to holders of restricted stock	$ 30,725,000
Fixed exchange ratio of company's common stock	0.0489
Total cash paid	$ 1,595,000

Business Combinations - United

Business Combinations - United American (Details) - United American Bank	May 04, 2018USD ($)$ / sharesshares
Business Combinations
Aggregate transaction value	$ 56,417,000
Fixed exchange ratio of company's common stock	2.1644
Shares issued in acquisition \| shares	2,826,032
Total cash paid	$ 9,137,000
Issuance of shares of common stock to holders of restricted stock	47,280,000
Series A Preferred Stock
Business Combinations
Total cash paid	8,700,000
Series B Preferred Stock
Business Combinations
Total cash paid	$ 435,000
Series A and Series B Preferred Stock
Business Combinations
Cash issued per share \| $ / shares	$ 1,000
Other
Business Combinations
Total cash paid	$ 2,000

Business combinations - Presidi

Business combinations - Presidio (Details)	Oct. 11, 2019USD ($)$ / sharesshares	Oct. 31, 2019	Dec. 31, 2020USD ($)	Dec. 31, 2019USD ($)	Dec. 19, 2019USD ($)	Dec. 31, 2018USD ($)
Assets acquired:
Securities available-for-sale				$ 45,069,000		$ 63,723,000
Securities held-to-maturity				463,000
Loans				685,964,000		336,446,000
Premises and equipment				1,756,000		350,000
Other assets, net				29,397,000		14,736,000
Subordinate debt			$ 39,740,000	39,554,000
Liabilities assumed:
Deposits				774,259,000		416,628,000
Subordinate debt			39,740,000	39,554,000
Other borrowings				442,000		62,000
Other liabilities				18,127,000		3,038,000
Goodwill recorded in the merger			167,631,000	167,420,000		$ 83,753,000
Consideration for Presidio stock options exchanged for Heritage Commerce Corp stock options				$ 7,426,000
Presidio bank
Assets acquired:
Cash and cash equivalents			117,988,000
Securities available-for-sale			45,069,000
Securities held-to-maturity			463,000
Loans			685,964,000
Premises and equipment			1,756,000
Other intangible assets			11,147,000
Other assets, net			42,161,000
Total assets acquired			904,548,000
Amortized intangible assets		60 months
Subordinate debt			10,000,000		$ 10,000,000
Liabilities assumed:
Deposits			774,259,000
Subordinate debt			10,000,000		$ 10,000,000
Other borrowings			442,000
Other liabilities			18,127,000
Total liabilities assumed			802,828,000
Net assets acquired			101,720,000
Purchase price			185,598,000
Goodwill recorded in the merger			83,878,000
Aggregate transaction value	$ 185,598,000
Fixed exchange ratio				2.47
Issuance of shares of common stock to Presidio shareholders \| shares	15,684,064
Issuance of shares of common stock to holders of restricted stock	$ 178,171,000
Stock price at Closing (in dollars per share) \| $ / shares	$ 11.36
Consideration for Presidio stock options exchanged for Heritage Commerce Corp stock options	$ 7,426,000		7,426,000
Cash paid for fractional shares	$ 1,000
Presidio bank \| Below or Above market-value lease
Assets acquired:
Amortized intangible assets	60 months
Previously Reported \| Presidio bank
Assets acquired:
Cash and cash equivalents			117,989,000
Securities available-for-sale			44,647,000
Securities held-to-maturity			463,000
Loans			698,493,000
Allowance for loan losses			(7,463,000)
Premises and equipment			1,756,000
Other assets, net			43,539,000
Total assets acquired			899,424,000
Subordinate debt			10,000,000
Liabilities assumed:
Deposits			774,260,000
Subordinate debt			10,000,000
Other borrowings			442,000
Other liabilities			17,916,000
Total liabilities assumed			802,618,000
Fair Value Adjustments \| Presidio bank
Assets acquired:
Cash and cash equivalents			(1,000)
Securities available-for-sale			422,000
Loans			(12,529,000)
Allowance for loan losses			7,463,000
Other intangible assets			11,147,000
Other assets, net			(1,378,000)
Total assets acquired			5,124,000
Liabilities assumed:
Deposits			(1,000)
Other liabilities			211,000
Total liabilities assumed			$ 210,000

Business Combinations - Pro For

Business Combinations - Pro Forma Information (Details) - Presidio bank - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2018
Pro Forma Information
Net interest income	$ 163,555	$ 160,044
Provision for loan losses	870	7,694
Noninterest income	11,291	10,795
Noninterest expense	92,708	97,563
Income before income taxes	81,268	65,582
Income tax expense	23,730	17,549
Net income	$ 57,538	$ 48,033
Net income per share - basic (in dollars per share)	$ 0.98	$ 0.84
Net income per share - diluted (in dollars per share)	$ 0.96	$ 0.83

Business combinations - Pre-tax

Business combinations - Pre-tax merger-related costs (Details) - USD ($)	3 Months Ended							12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Business Acquisition [Line Items]
Salaries and employee benefits								$ 356,000	$ 6,580,000	$ 3,569,000
Other								2,245,000	4,500,000	5,598,000
Total merger-related costs	$ 101,000	$ 17,000	$ 59,000	$ 2,424,000	$ 9,879,000	$ 661,000	$ 540,000	2,601,000	11,080,000	9,167,000
Presidio bank
Business Acquisition [Line Items]
Salaries and employee benefits								356,000	6,580,000	3,569,000
Other								2,245,000	4,500,000	5,598,000
Total merger-related costs								$ 2,601,000	$ 11,080,000	$ 9,167,000

Business Combinations (Details)

Business Combinations (Details)	Dec. 31, 2020USD ($)company	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)
Number of business banking franchises acquired \| company	4
Combined business value after business combination	$ 4,000,000,000
Goodwill recorded in the merger	167,631,000	$ 167,420,000	$ 83,753,000
Tri Valley Bank
Goodwill recorded in the merger	13,819,000
United American Bank
Goodwill recorded in the merger	24,271,000
Presidio bank
Goodwill recorded in the merger	$ 83,878,000

Goodwill and Other Intangible_3

Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Goodwill
Goodwill	$ 167,631,000	$ 167,420,000	$ 83,753,000
Goodwill acquired		83,878,000	38,039,000
BVF/CSNK
Goodwill
Goodwill acquired	13,044,000
Focus
Goodwill
Goodwill acquired	32,619,000
Tri Valley Bank
Goodwill
Goodwill	13,819,000
Goodwill acquired	13,819,000
United American Bank
Goodwill
Goodwill	24,271,000
Goodwill acquired	24,271,000
Presidio bank
Goodwill
Goodwill	83,878,000
Goodwill acquired	83,878,000
Banking
Goodwill
Goodwill	154,587,000	154,376,000	70,709,000
Factoring
Goodwill
Goodwill	$ 13,044,000	$ 13,044,000	$ 13,044,000

Goodwill and Other Intangible_4

Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Other Intangible Assets
Gross Carrying amount	$ 27,693	$ 27,693
Accumulated Amortization	(11,029)	(7,278)
Total	16,664	20,415
Core deposit
Other Intangible Assets
Gross Carrying amount	25,023	25,023
Accumulated Amortization	(9,153)	(5,846)
Total	15,870	19,177
Below market-value lease
Other Intangible Assets
Gross Carrying amount	770	770
Accumulated Amortization	(705)	(451)
Total	65	319
Customer relationship and brokered relationship
Other Intangible Assets
Gross Carrying amount	1,900	1,900
Accumulated Amortization	(1,171)	(981)
Total	729	$ 919
United American Bank \| Core deposit
Other Intangible Assets
Total	3,695
Tri Valley Bank \| Core deposit
Other Intangible Assets
Total	1,112
Tri Valley Bank \| Below or Above market-value lease
Other Intangible Assets
Total	159
Presidio bank \| Core deposit
Other Intangible Assets
Total	8,997
Presidio bank \| Below or Above market-value lease
Other Intangible Assets
Total	(73)
Focus \| Core deposit
Other Intangible Assets
Total	2,066
BVF/CSNK \| Customer relationship and brokered relationship
Other Intangible Assets
Total	$ 729

Goodwill and Other Intangible_5

Goodwill and Other Intangible Assets - Estimated Amortization Expense (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Estimated Amortization Expense
2021	$ 2,996
2022	2,635
2023	2,405
2024	2,187
2025	1,813
Thereafter	4,628
Total	16,664	$ 20,415
Core deposit
Estimated Amortization Expense
Total	15,870	19,177
Below market-value lease
Estimated Amortization Expense
Total	65	319
Customer relationship and brokered relationship
Estimated Amortization Expense
Total	729	$ 919
United American Bank \| Core deposit
Estimated Amortization Expense
2021	602
2022	553
2023	521
2024	499
2025	478
Thereafter	1,042
Total	3,695
Tri Valley Bank \| Core deposit
Estimated Amortization Expense
2021	184
2022	167
2023	158
2024	152
2025	145
Thereafter	306
Total	1,112
Tri Valley Bank \| Below or Above market-value lease
Estimated Amortization Expense
2021	18
2022	18
2023	18
2024	18
2025	18
Thereafter	69
Total	159
Presidio bank \| Core deposit
Estimated Amortization Expense
2021	1,447
2022	1,225
2023	1,118
2024	1,026
2025	970
Thereafter	3,211
Total	8,997
Presidio bank \| Below or Above market-value lease
Estimated Amortization Expense
2021	(20)
2022	(20)
2023	(20)
2024	(13)
Total	(73)
Focus \| Core deposit
Estimated Amortization Expense
2021	596
2022	502
2023	420
2024	346
2025	202
Total	2,066
BVF/CSNK \| Customer relationship and brokered relationship
Estimated Amortization Expense
2021	190
2022	190
2023	190
2024	159
Total	$ 729

Goodwill and Other Intangible_6

Goodwill and Other Intangible Assets - Impairment of Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Impairment of Intangible Assets
Impairment of intangible assets	$ 0	$ 0

Deposits - Scheduled Maturities

Deposits - Scheduled Maturities of all Time Deposits and Brokered Deposits for the Next Five Years (Details) $ in Thousands	Dec. 31, 2020USD ($)
Scheduled Maturities of Time Deposits Including Brokered Deposits for the Next Five Years
2021	$ 138,100
2022	10,255
2023	4,126
2024	435
2025	491
Total	$ 153,407

Deposits - Time Deposits (Detai

Deposits - Time Deposits (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Deposits.
Time deposits, including deposits within the CDARS and brokered deposits, $250,000 or more	$ 103,746,000	$ 99,882,000

Deposits - Additional Informati

Deposits - Additional Information (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Additional Information
CDARS deposits	$ 23,911,000	$ 28,847,000
Interest-bearing demand deposits	18,614,000	12,885,000
Money market accounts under CDARS program	663,000	2,171,000
Time deposits under CDARS program	4,634,000	13,791,000
Deposits from executive officers, directors, and their affiliates	$ 4,491,000	$ 12,636,000

Borrowing Arrangements - Federa

Borrowing Arrangements - Federal Home Loan Bank Borrowings, Federal Reserve Bank Borrowings, and Available Lines of Credit (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
FHLB
Borrowing Arrangements
Securities pledged as collateral		$ 0
FHLB \| Line of credit \| FHLB of San Francisco
Borrowing Arrangements
FHLB overnight borrowings	$ 0	0
FHLB
Borrowing Arrangements
Loans pledged as collateral		272,879,000
Securities pledged as collateral	3,202,000
Amount outstanding	0
Line of credit	3,041,000	$ 228,103,000
FHLB \| Line of credit \| FHLB of San Francisco
Borrowing Arrangements
Loans pledged as collateral	232,632,000
Line of credit	$ 160,523,000

Borrowing Arrangements - Fede_2

Borrowing Arrangements - Federal Reserve Bank Borrowings (Details) - Line of credit - FRB - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Borrowing Arrangements
Loans pledged as collateral	$ 921,373,000	$ 726,709,000
Line of credit	528,064,000	408,401,000
Amount outstanding	$ 0	$ 0

Borrowing Arrangements - Availa

Borrowing Arrangements - Available Lines of Credit (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Borrowing Arrangements
Federal funds purchased	$ 0	$ 0
Federal funds purchase arrangement
Borrowing Arrangements
Federal funds purchase arrangements available	$ 80,000,000

Borrowing Arrangements - Line o

Borrowing Arrangements - Line of Credit with a Corresponding Bank (Details) - Line of credit - HCC (Parent) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Borrowing Arrangements
Line of credit	$ 10,000,000	$ 5,000,000
Amount outstanding	$ 0
Amount outstanding		$ 0

Borrowing Arrangements - Securi

Borrowing Arrangements - Securities Sold under Repurchase Agreements (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Borrowing Arrangements
Amount of securities sold under agreements	$ 0	$ 0

Borrowing Arrangements - Subord

Borrowing Arrangements - Subordinated Debt (Details) - USD ($)	May 26, 2017	Dec. 31, 2019	Dec. 31, 2020	Dec. 19, 2019
Principal amount	$ 40,000,000
Fixed interest rate (as a percent)	5.25%
Subordinated Debt.		$ 39,554,000	$ 39,740,000
Debt Issuance Costs			260,000
Presidio bank
Fixed interest rate (as a percent)		8.00%
Subordinated Debt.			$ 10,000,000	$ 10,000,000
Pre-payment penalty		$ 300,000
LIBOR
Rate of interest added to base rate	336.50%

Income Taxes - Income Tax (Bene

Income Taxes - Income Tax (Benefit) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Currently payable tax:
Federal									$ 9,630	$ 7,631	$ 9,187
State									5,828	4,689	5,416
Total currently payable									15,458	12,320	14,603
Deferred tax (benefit):
Federal									(932)	2,200	(1,133)
State									(757)	1,331	(146)
Total deferred tax									(1,689)	3,531	(1,279)
Income tax expense	$ 4,429	$ 4,198	$ 4,274	$ 868	$ 2,088	$ 4,633	$ 4,623	$ 4,507	$ 13,769	$ 15,851	$ 13,324

Income Taxes - Effective Tax Ra

Income Taxes - Effective Tax Rate (Details)	12 Months Ended
Income Taxes - Effective Tax Rate (Details)	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Effective tax rate differs from the federal statutory rate
Statutory Federal income tax rate (as a percent)	21.00%	21.00%	21.00%
State income taxes, net of federal tax benefit (as a percent)	8.20%	8.50%	8.50%
Low income housing credits, net of investment losses (as a percent)	(0.50%)	(0.50%)	(0.80%)
Increase in cash surrender value of life insurance (as a percent)	(0.80%)	(0.50%)	(0.50%)
Stock option/restricted stock windfall tax benefit	0.60%	(0.30%)	(0.90%)
Non-taxable interest income (as a percent)	(0.80%)	(0.80%)	(0.90%)
Split dollar term insurance (as a percent)	0.10%	0.10%	0.10%
Merger cost	0.00%	0.50%	0.50%
Other, net (as a percent)	0.30%	0.10%	0.40%
Effective tax rate (as a percent)	28.10%	28.10%	27.40%

Income Taxes - Deferred Tax Ass

Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Deferred tax assets:
Allowance for loan losses	$ 12,827	$ 7,231
Lease accounting	10,537	1,647
Defined postretirement benefit obligation	10,419	9,901
Accrued expenses	2,896	2,562
Federal net operating loss carryforwards	2,846	3,662
Stock compensation	1,894	1,636
State income taxes	1,142	954
California net operating loss carryforwards	1,106	1,489
Premises and equipment	459	695
Nonaccrual interest	101	61
Split-dollar life insurance benefit plan	80	75
Tax credit carryforwards	57	57
Other	469	654
Total deferred tax assets	44,833	30,624
Deferred tax liabilities:
Lease accounting	(10,537)	(1,647)
Loan fees	(1,820)	(1,842)
Securities available-for-sale	(1,764)	(772)
Intangible liabilities	(1,388)	(1,321)
Prepaid expenses	(689)	(289)
FHLB stock	(166)	(177)
I/O strips	(87)	(144)
Other	(161)	(130)
Total deferred tax liabilities	(16,612)	(6,322)
Net deferred tax assets	$ 28,221	$ 24,302

Income Taxes - Operating Loss C

Income Taxes - Operating Loss Carryforward (Details)	Dec. 31, 2020USD ($)
Federal \| IRS
Operating Loss Carryforward
Net operating loss carryforward	$ 13,553,000
State \| California
Operating Loss Carryforward
Net operating loss carryforward	$ 12,903,000

Income Taxes - Tax Credit Carry

Income Taxes - Tax Credit Carryforwards (Details)	Dec. 31, 2020USD ($)
Tax Credit Carryforwards
Valuation allowance for deferred tax assets	$ 0
California \| State
Tax Credit Carryforwards
Total tax credit carryforwards	$ 72,567

Income Taxes - Carry Amounts of

Income Taxes - Carry Amounts of the Low Income Housing Investments (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Income Taxes
Low income housing investments	$ 5,246	$ 6,126
Future commitments	$ 596	$ 625

Income Taxes - Future Commitmen

Income Taxes - Future Commitments of the Low Income Housing Investments (Details) - Low income housing investments	Dec. 31, 2020USD ($)
Future Commitments
2021	$ 46,000
2022 through 2026	$ 550,000

Income Taxes - Components of Lo

Income Taxes - Components of Low Income Housing Investment (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Income Taxes
Low income housing tax credits	$ 839,000	$ 511,000
Low income housing investment expense	$ 850,000	$ 520,000

Equity Plan - General Disclosur

Equity Plan - General Disclosures (Details) - USD ($)	Oct. 11, 2019	Dec. 31, 2020	Dec. 31, 2019
Equity Plan
Number of shares available for future grants		2,409,062
Consideration for Presidio stock options exchanged for Heritage Commerce Corp stock options			$ 7,426,000
Presidio bank
Equity Plan
Consideration for Presidio stock options exchanged for Heritage Commerce Corp stock options	$ 7,426,000	$ 7,426,000
Options
Equity Plan
Vesting period		4 years
Expiration term		10 years
Heritage Commerce Corp stock options		2,546,821	2,712,846
Options \| Presidio bank
Equity Plan
Heritage Commerce Corp stock options		1,176,757
Restricted stock
Equity Plan
Number of equity awards issued (in shares)		168,117
Nonqualified stock options
Equity Plan
Number of equity awards issued (in shares)		329,500

Equity Plan - Stock Option Acti

Equity Plan - Stock Option Activity (Details) - Options	12 Months Ended
Equity Plan - Stock Option Activity (Details) - Options	Dec. 31, 2020USD ($)$ / sharesshares
Number of Shares
Outstanding at the beginning of the period (in shares)	2,712,846
Granted (in shares)	329,500
Exercised (in shares)	(381,184)
Forfeited or expired (in shares)	(114,341)
Outstanding at the end of the period (in shares)	2,546,821
Vested or expected to vest (in shares)	2,394,012
Exercisable at the end of the period (in shares)	2,017,899
Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share) \| $ / shares	$ 8.80
Granted (in dollars per share) \| $ / shares	9.11
Exercised (in dollars per share) \| $ / shares	4.50
Forfeited or expired (in dollars per share) \| $ / shares	12.93
Outstanding at the end of the period (in dollars per share) \| $ / shares	$ 9.30
Additional Information
Weighted Average Remaining Contractual Life - Outstanding at the end of the period (in years)	5 years 5 months 4 days
Weighted Average Remaining Contractual Life - Vested or expected to vest (in years)	5 years 5 months 4 days
Weighted Average Remaining Contractual Life - Exercisable at the end of the period (in years)	4 years 7 months 6 days
Aggregate Intrinsic Value - Outstanding at the end of the period (in dollars) \| $	$ 3,473,312
Aggregate Intrinsic Value - Vested or expected to vest (in dollars) \| $	3,264,913
Aggregate Intrinsic Value - Exercisable at the end of the period (in dollars) \| $	$ 3,473,312
Presidio bank
Number of Shares
Outstanding at the end of the period (in shares)	1,176,757

Equity Plan - Information Relat

Equity Plan - Information Related to the Equity Plans for each of the Last Three Years (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Information Related to the Equity Plans
Cash received from option exercise	$ 1,714,000	$ 1,626,000	$ 2,667,000
Options
Information Related to the Equity Plans
Intrinsic value of options exercised	2,258,245	1,618,615	1,844,909
Cash received from option exercise	1,713,737	1,626,113	2,667,305
Tax benefit realized from option exercises	$ 63,124	$ 258,037	$ 534,638
Weighted average fair value of options granted (in dollars per share)	$ 1.15	$ 1.91	$ 3.03

Equity Plan - Unrecognized Comp

Equity Plan - Unrecognized Compensation Cost - Nonvested Stock Options (Details) - Options	12 Months Ended
	Dec. 31, 2020USD ($)
Unrecognized Compensation Cost
Total unrecognized compensation cost related to nonvested stock options granted	$ 894,000
Expected weighted-average period for recognition of compensation costs related to nonvested stock options	2 years 7 months 17 days

Equity Plan - Assumptions Used

Equity Plan - Assumptions Used to Estimate Fair Value (Details) - Options	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Assumptions Used to Estimate Fair Value
Expected life in months	72 months	72 months	72 months
Volatility (as a percent)	29.00%	24.00%	21.00%
Weighted average risk-free interest rate (as a percent)	0.53%	2.23%	2.88%
Expected dividends (as a percent)	5.71%	3.95%	2.64%

Equity Plan - Restricted Stock

Equity Plan - Restricted Stock Activity (Details) - Restricted stock	12 Months Ended
	Dec. 31, 2020$ / sharesshares
Number of Shares
Nonvested shares at the beginning of the period (in shares) \| shares	239,453
Granted (in shares) \| shares	168,117
Vested (in shares) \| shares	(108,870)
Nonvested shares at the end of the period (in shares) \| shares	298,700
Weighted Average Grant Date Fair Value
Nonvested shares at the beginning of the period (in dollars per share) \| $ / shares	$ 11.23
Granted (in dollars per share) \| $ / shares	9.20
Vested (in dollars per share) \| $ / shares	13.19
Nonvested shares at the end of the period (in dollars per share) \| $ / shares	$ 10.83

Equity Plan - Unrecognized Co_2

Equity Plan - Unrecognized Compensation Cost - Nonvested Restricted Stock Awards (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Unrecognized Compensation Cost
Total compensation cost	$ 2,248,000	$ 1,924,000	$ 1,817,000
Total income tax expense (benefit) on share-based compensation cost	301,000	$ (146,000)	$ (424,000)
Restricted stock
Unrecognized Compensation Cost
Total unrecognized compensation cost related to nonvested restricted stock awards	$ 2,198,000
Expected weighted-average period for recognition of compensation costs related to nonvested restricted stock awards	1 year 9 months 3 days

Benefit Plans - 401(k) Savings

Benefit Plans - 401(k) Savings Plan (Details) - USD ($)	12 Months Ended
Benefit Plans - 401(k) Savings Plan (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
401(k) Savings Plan
Maximum discretionary contribution matched by employer for each employee's contribution	$ 3,000	$ 3,000
Contribution expense	$ 942,000	$ 934,000	$ 749,000

Benefit Plans - Employee Stock

Benefit Plans - Employee Stock Ownership Plan (Details)	12 Months Ended
Benefit Plans - Employee Stock Ownership Plan (Details)	Dec. 31, 2020itemshares
Employee Stock Ownership Plan
Minimum number of hours of service required for plan eligibility \| item	1,000
Number of shares of Company's common stock owned by ESOP \| shares	101,231

Benefit Plans - Deferred Compen

Benefit Plans - Deferred Compensation Plan (Details) - employee	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Deferred Compensation Plan
Maximum percentage of bonus into deferred account	100.00%
Percentage of regular salary into deferred account	50.00%
Number of employees elected to participate in deferred compensation	8	5

Benefit Plans - Defined Benefit

Benefit Plans - Defined Benefit Plans - Nonqualified Defined Benefit Pension Plan (Details) - Supplemental Retirement Plan	12 Months Ended
	Dec. 31, 2020USD ($)employee
Supplemental Retirement Plan
Combined number of active and retired/terminated participants \| employee	53
Plan assets associated with the plan \| $	$ 0
Vesting period of defined benefit stated amount, minimum	9 years

Benefit Plans - Defined Benef_2

Benefit Plans - Defined Benefit Plans - Change in Projected Benefit Obligation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Split-Dollar Life Insurance Benefit Plan
Change in projected benefit obligation:
Projected benefit obligation at beginning of year	$ 8,198	$ 6,903
Interest cost	246	278
Actuarial loss (gain)	1,245	1,017
Projected benefit obligation at end of period	9,689	8,198
Supplemental Retirement Plan
Change in projected benefit obligation:
Projected benefit obligation at beginning of year	33,689	26,781
Projected benefit obligation of SERP agreements acquired from Presidio		2,541
Service cost	492	263
Interest cost	935	1,059
Actuarial loss (gain)	(3,008)	(4,182)
Benefits paid	(3,118)	(1,137)
Plan amendment	398
Projected benefit obligation at end of period	$ 35,404	$ 33,689

Benefit Plans - Defined Benef_3

Benefit Plans - Defined Benefit Plans - Amounts Recognized in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Split-Dollar Life Insurance Benefit Plan
Amounts Recognized in Accumulated Other Comprehensive Loss
Net actuarial loss	$ 5,170	$ 3,776
Prior transition obligation	970	1,059
Accumulated other comprehensive loss	6,140	4,835
Supplemental Retirement Plan
Amounts Recognized in Accumulated Other Comprehensive Loss
Net actuarial loss	$ 12,445	$ 9,714

Benefit Plans - Defined Benef_4

Benefit Plans - Defined Benefit Plans - Weighted-average Assumptions Used to Determine the Benefit Obligation at Year-end (Details)	Dec. 31, 2020	Dec. 31, 2019
Supplemental Retirement Plan
Weighted-average Assumptions Used to Determine the Benefit Obligation at Year-end
Discount rate	2.26%	3.01%
Split-Dollar Life Insurance Benefit Plan
Weighted-average Assumptions Used to Determine the Benefit Obligation at Year-end
Discount rate	2.26%	3.01%

Benefit Plans - Defined Benef_5

Benefit Plans - Defined Benefit Plans - Estimated Benefit Payments over the Next Ten Years (Details) - Supplemental Retirement Plan $ in Thousands	Dec. 31, 2020USD ($)
Estimated Benefit Payments
2021	$ 2,123
2022	1,814
2023	1,918
2024	1,954
2025	2,026
2026 to 2030	$ 11,465

Benefit Plans - Defined Benef_6

Benefit Plans - Defined Benefit Plans - Components of Pension Cost (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Supplemental Retirement Plan
Components of net periodic benefit cost:
Service cost	$ 492	$ 263
Interest cost	935	1,059
Amortization of prior transition obligation	299
Amortization of net actuarial loss	387	184
Accelerated benefits for Presidio SERP agreements due to change in control		1,465
Net periodic benefit cost	2,113	2,971
Amount recognized in other comprehensive income	1,924	2,847
Split-Dollar Life Insurance Benefit Plan
Components of net periodic benefit cost:
Interest cost	246	278
Amortization of prior transition obligation and actuarial losses	(60)	(96)
Net periodic benefit cost	186	182
Amount recognized in other comprehensive income	$ 1,305	$ 1,113

Benefit Plans - Defined Benef_7

Benefit Plans - Defined Benefit Plans - Estimated Net Actuarial Loss and Prior Service Cost (Details)	Dec. 31, 2020USD ($)
Supplemental Retirement Plan
Estimated net actuarial loss and prior service cost that will be amortized from accumulated other comprehensive loss into net periodic cost over next fiscal year
Estimated net actuarial loss and prior service cost that will be amortized from accumulated other comprehensive loss into net periodic cost over next fiscal year	$ 643,000
Split-Dollar Life Insurance Benefit Plan
Estimated net actuarial loss and prior service cost that will be amortized from accumulated other comprehensive loss into net periodic cost over next fiscal year
Estimated net actuarial loss and prior service cost that will be amortized from accumulated other comprehensive loss into net periodic cost over next fiscal year	$ 90,000

Benefit Plans - Defined Benef_8

Benefit Plans - Defined Benefit Plans - Weighted-average Assumptions Used to Determine Net Periodic Cost (Details)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Supplemental Retirement Plan
Weighted-average Assumption Used to Determine Net Periodic Benefit Cost:
Discount rate	3.01%	4.03%
Split-Dollar Life Insurance Benefit Plan
Weighted-average Assumption Used to Determine Net Periodic Benefit Cost:
Discount rate	3.01%	4.03%

Fair Value - Financial Assets a

Fair Value - Financial Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	$ 235,774	$ 404,825
I/O strip receivables	305	503
Agency mortgage-backed securities
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	175,326	284,361
U.S. Treasury
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	60,448	120,464
Quoted Prices in Active Markets for Identical Assets (Level 1) \| U.S. Treasury
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	60,448	120,464
Significant Other Observable Inputs (Level 2)
Financial Assets and Liabilities Measured on a Recurring Basis
I/O strip receivables	305	503
Significant Other Observable Inputs (Level 2) \| Agency mortgage-backed securities
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	$ 175,326	$ 284,361

Fair Value - Impaired Loans Hel

Fair Value - Impaired Loans Held-for-investment - Additional Disclosures (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Carrying amount
Impaired Loans Held-for-investment
Foreclosed assets	$ 0	$ 0

Fair Value - Carrying Amounts a

Fair Value - Carrying Amounts and Estimated Fair Values of Financial Instruments (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Assets
Securities available-for-sale	$ 235,774,000	$ 404,825,000
Securities held-to-maturity	304,927,000	368,107,000
Federal Home Loan Bank, Federal Reserve Bank stock and other investments, at cost	33,522,000	29,842,000
I/O strips receivables	305,000	503,000
Liabilities
Subordinated Debt.	39,740,000	39,554,000
Significant Other Observable Inputs (Level 2)
Assets
I/O strips receivables	305,000	503,000
Carrying amount
Assets
Cash and cash equivalents	1,131,073,000	457,370,000
Securities available-for-sale	235,774,000	404,825,000
Securities held-to-maturity	297,389,000	366,560,000
Loans (including loans held-for-sale), net	2,576,560,000	2,511,611,000
Federal Home Loan Bank, Federal Reserve Bank stock and other investments, at cost	33,522,000	29,842,000
Accrued interest receivable	10,546,000	10,915,000
I/O strips receivables	305,000	503,000
Liabilities
Time deposits	153,407,000	168,034,000
Other deposits	3,761,079,000	3,246,734,000
Subordinated Debt.	39,740,000	39,554,000
Accrued interest payable	545,000	707,000
Carried at fair value
Assets
Cash and cash equivalents	1,131,073,000	457,370,000
Securities available-for-sale	235,774,000	404,825,000
Securities held-to-maturity	304,927,000	368,107,000
Loans (including loans held-for-sale), net	2,574,692,000	2,513,329,000
Accrued interest receivable	10,546,000	10,915,000
I/O strips receivables	305,000	503,000
Liabilities
Time deposits	153,740,000	158,704,000
Other deposits	3,761,079,000	3,246,734,000
Subordinated Debt.	40,340,000	40,404,000
Accrued interest payable	545,000	707,000
Carried at fair value \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets
Cash and cash equivalents	1,131,073,000	457,370,000
Securities available-for-sale	60,448,000	120,464,000
Accrued interest receivable	309,000	446,000
Carried at fair value \| Significant Other Observable Inputs (Level 2)
Assets
Securities available-for-sale	175,326,000	284,361,000
Securities held-to-maturity	304,927,000	368,107,000
Loans (including loans held-for-sale), net	1,699,000	1,052,000
Accrued interest receivable	1,512,000	2,218,000
I/O strips receivables	305,000	503,000
Liabilities
Time deposits	153,740,000	158,704,000
Other deposits	3,761,079,000	3,246,734,000
Subordinated Debt.	40,340,000	40,404,000
Accrued interest payable	545,000	707,000
Carried at fair value \| Significant Unobservable Inputs (Level 3)
Assets
Loans (including loans held-for-sale), net	2,572,993,000	2,512,277,000
Accrued interest receivable	$ 8,725,000	$ 8,251,000

Commitments and Loss Continge_3

Commitments and Loss Contingencies - Financial Instruments with Off-Balance Sheet Risk (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Jan. 01, 2020
Commitments and Contingencies
Commitments to extend credit, fixed rate	$ 124,609,000	$ 158,817,000
Commitments to extend credit, variable rate	989,584,000	961,821,000
Commitment to extend credit, total	$ 1,114,193,000	$ 1,120,638,000
Percentage of unused commitments to outstanding gross loans	42.00%	44.00%
Off-Balance Sheet, Credit Loss, Liability, Credit Loss Expenses (Reduction)	$ 192,000
Off-balance sheet credit exposures	1,078,000		$ 679,000
Off-balance sheet, credit loss liability increase due to offsetting increase in loss factors in CECL model	399,000
Restatement Adjustment \| ASU 2016-03 - Topic 326
Commitments and Contingencies
Off-balance sheet credit exposures	(207,000)	$ (207,000)
Unused lines of credit and commitments to make loans
Commitments and Contingencies
Commitments to extend credit, fixed rate	121,560,000	147,372,000
Commitments to extend credit, variable rate	970,614,000	951,206,000
Commitment to extend credit, total	1,092,174,000	1,098,578,000
Standby letters of credit
Commitments and Contingencies
Commitments to extend credit, fixed rate	3,049,000	11,445,000
Commitments to extend credit, variable rate	18,970,000	10,615,000
Commitment to extend credit, total	$ 22,019,000	$ 22,060,000

Shareholders' Equity and Earn_3

Shareholders' Equity and Earnings Per Share - Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Aug. 27, 2019	Aug. 26, 2019
Shareholders' Equity and Earnings Per Share
Common stock, shares authorized	100,000,000				100,000,000				100,000,000	100,000,000		100,000,000	60,000,000
Reconciliation of factors used in computing basic and diluted earnings per common share
Net income	$ 11,623	$ 11,197	$ 10,618	$ 1,861	$ 5,685	$ 11,277	$ 11,353	$ 12,146	$ 35,299	$ 40,461	$ 35,331
Weighted average common shares outstanding for basic earnings per common share (in shares)									59,478,343	46,684,384	41,469,211
Dilutive potential common shares									690,796	1,221,845	713,728
Shares used in computing diluted earnings per common share (in shares)									60,169,139	47,906,229	42,182,939
Basic earnings per share (in dollars per share)	$ 0.19	$ 0.19	$ 0.18	$ 0.03	$ 0.10	$ 0.26	$ 0.26	$ 0.28	$ 0.59	$ 0.87	$ 0.85
Diluted earnings per share (in dollars per share)	$ 0.19	$ 0.19	$ 0.18	$ 0.03	$ 0.10	$ 0.26	$ 0.26	$ 0.28	$ 0.59	$ 0.84	$ 0.84
Number of shares not in computing diluted earnings per common share									1,524,757	789,065	534,106

Capital Requirements - General

Capital Requirements - General Information (Details)	Mar. 27, 2020	Dec. 31, 2020	Dec. 31, 2019
Capital Requirements
Period to delay the estimated impact of the adoption of the CECL Standard to regulatory capital as the company elected the option	2 years
Addition period for transition	3 years
HBC (Wholly-owned Subsidiary)
Capital Requirements
Capital conservation buffer (as a percent)		2.50%	2.50%

Capital Requirements - Tabular

Capital Requirements - Tabular Disclosure (Details) $ in Thousands	Dec. 31, 2020USD ($)	Dec. 31, 2019USD ($)
Total Capital (to risk-weighted assets)
Actual, Amount	$ 483,870	$ 457,158
Required For Capital Adequacy Purposes, Amount	$ 307,067	$ 329,306
Actual, Ratio (as a percent)	16.5	14.6
Required For Capital Adequacy Purposes, Ratio (as a percent)	10.5	10.5
Tier 1 Capital (to risk-weighted assets)
Actual, Amount	$ 410,307	$ 393,432
Required For Capital Adequacy Purposes, Amount	$ 248,578	$ 266,581
Actual, Ratio (as a percent)	14	12.5
Required For Capital Adequacy Purposes, Ratio (as a percent)	8.5	8.5
Common Equity Tier 1 Capital (to risk-weighted assets)
Actual, Amount	$ 410,307	$ 393,432
Required For Capital Adequacy Purposes, Amount	$ 204,711	$ 219,538
Actual, Ratio (as a percent)	14.00%	12.50%
Required For Capital Adequacy Purposes, Ratio (as a percent)	7.00%	7.00%
Tier 1 Capital (to average assets)
Actual, Amount	$ 410,307	$ 393,432
Required For Capital Adequacy Purposes, Amount	$ 180,281	$ 161,677
Actual, Ratio (as a percent)	9.1	9.7
Required For Capital Adequacy Purposes, Ratio (as a percent)	4	4
HBC (Wholly-owned Subsidiary)
Total Capital (to risk-weighted assets)
Actual, Amount	$ 461,933	$ 435,757
To Be Well Capitalized Under Regulatory Requirements, Amount	292,258	313,485
Required For Capital Adequacy Purposes, Amount	$ 306,871	$ 329,159
Actual, Ratio (as a percent)	15.8	13.9
To Be Well Capitalized Under Regulatory Requirements, Ratio (as a percent)	10	10
Required For Capital Adequacy Purposes, Ratio (as a percent)	10.5	10.5
Tier 1 Capital (to risk-weighted assets)
Actual, Amount	$ 428,109	$ 411,585
To Be Well Capitalized Under Regulatory Requirements, Amount	233,806	250,788
Required For Capital Adequacy Purposes, Amount	$ 248,419	$ 266,462
Actual, Ratio (as a percent)	14.6	13.1
To Be Well Capitalized Under Regulatory Requirements, Ratio (as a percent)	8	8
Required For Capital Adequacy Purposes, Ratio (as a percent)	8.5	8.5
Common Equity Tier 1 Capital (to risk-weighted assets)
Actual, Amount	$ 428,109	$ 411,585
To Be Well Capitalized Under Regulatory Requirements, Amount	189,968	203,765
Required For Capital Adequacy Purposes, Amount	$ 204,580	$ 219,439
Actual, Ratio (as a percent)	14.60%	13.10%
To Be Well Capitalized Under Regulatory Requirements, Ratio (as a percent)	6.50%	6.50%
Required For Capital Adequacy Purposes, Ratio (as a percent)	7.00%	7.00%
Tier 1 Capital (to average assets)
Actual, Amount	$ 428,109	$ 411,585
To Be Well Capitalized Under Regulatory Requirements, Amount	225,263	202,013
Required For Capital Adequacy Purposes, Amount	$ 180,211	$ 161,611
Actual, Ratio (as a percent)	9.5	10.2
To Be Well Capitalized Under Regulatory Requirements, Ratio (as a percent)	5	5
Required For Capital Adequacy Purposes, Ratio (as a percent)	4	4

Capital Requirements - Dividend

Capital Requirements - Dividends to Parent (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Cash dividend
Subordinated Debt.	$ 39,740,000	$ 39,554,000
HCC (Parent)
Cash dividend
Subordinated Debt.	39,740,000	39,554,000
HBC (Wholly-owned Subsidiary)
Cash dividend
Cash dividend available	21,996,000
Dividends paid to parent company	$ 32,000,000	$ 22,500,000

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
Revenue Recognition (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Disaggregation of Revenue [Line Items]
Non-interest Income In-scope of Topic 606									$ 3,650	$ 4,510	$ 4,113
Non-interest Income Out-of-scope of Topic 606									6,272	5,734	5,461
Total noninterest income	$ 2,056	$ 2,595	$ 2,078	$ 3,193	$ 2,393	$ 2,618	$ 2,765	$ 2,468	9,922	10,244	9,574
Service charges and fees on deposit accounts
Disaggregation of Revenue [Line Items]
Non-interest Income In-scope of Topic 606									$ 2,859	$ 4,510	$ 4,113
Revenue, Product and Service [Extensible List]									Service charges and fees on deposit accounts	Service charges and fees on deposit accounts	Service charges and fees on deposit accounts
Gain on the disposition of foreclosed assets
Disaggregation of Revenue [Line Items]
Non-interest Income In-scope of Topic 606									$ 791
Revenue, Product and Service [Extensible List]									Gain on the disposition of foreclosed assets	Gain on the disposition of foreclosed assets	Gain on the disposition of foreclosed assets

Noninterest Expense (Details)

Noninterest Expense (Details) - USD ($)	3 Months Ended							12 Months Ended
Noninterest Expense (Details) - USD ($)	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Noninterest Expense
Salaries and employee benefits								$ 50,927,000	$ 50,754,000	$ 43,762,000
Occupancy and equipment								8,018,000	6,647,000	5,411,000
Professional fees								5,338,000	3,259,000	1,969,000
Amortization of intangible assets								3,751,000	2,739,000	1,943,000
Software subscriptions								3,102,000	2,397,000	2,343,000
Data processing								2,770,000	2,890,000	1,978,000
Insurance expense								2,286,000	1,864,000	1,685,000
Supplemental retirement plan cost								1,724,000	1,240,000	202,000
Other								11,595,000	13,108,000	16,228,000
Total noninterest expense, excluding merger-related costs								89,511,000	84,898,000	75,521,000
Salaries and employee benefits merger-related costs								356,000	6,580,000	3,569,000
Other merger-related costs								2,245,000	4,500,000	5,598,000
Total merger-related costs	$ 101,000	$ 17,000	$ 59,000	$ 2,424,000	$ 9,879,000	$ 661,000	$ 540,000	$ 2,601,000	$ 11,080,000	$ 9,167,000

Business Segment Information -

Business Segment Information - Business Segments (Details)	12 Months Ended
Business Segment Information - Business Segments (Details)	Dec. 31, 2020segment
Focus
Business Segment Information
Number of business segments	2

Business Segment Information _2

Business Segment Information - Operating Statements (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Operating Income
Interest income	$ 36,145,000	$ 36,252,000	$ 37,132,000	$ 40,942,000	$ 42,471,000	$ 33,250,000	$ 33,489,000	$ 33,449,000	$ 150,471,000	$ 142,659,000	$ 129,845,000
Total interest expense	1,940,000	2,087,000	2,192,000	2,362,000	3,242,000	2,625,000	2,573,000	2,407,000	8,581,000	10,847,000	7,822,000
Net interest income	34,205,000	34,165,000	34,940,000	38,580,000	39,229,000	30,625,000	30,916,000	31,042,000	141,890,000	131,812,000	122,023,000
Provision for credit losses on loans	(1,348,000)	197,000	1,114,000	13,270,000	3,223,000	(576,000)	(740,000)	(1,061,000)	13,233,000	846,000	7,421,000
Net interest income after provision	35,553,000	33,968,000	33,826,000	25,310,000	36,006,000	31,201,000	31,656,000	32,103,000	128,657,000	130,966,000	114,602,000
Noninterest income	2,056,000	2,595,000	2,078,000	3,193,000	2,393,000	2,618,000	2,765,000	2,468,000	9,922,000	10,244,000	9,574,000
Noninterest expense	21,557,000	21,168,000	21,012,000	25,774,000	30,626,000	17,909,000	18,445,000	17,918,000	89,511,000	84,898,000	75,521,000
Income before income taxes	16,052,000	15,395,000	14,892,000	2,729,000	7,773,000	15,910,000	15,976,000	16,653,000	49,068,000	56,312,000	48,655,000
Income tax expense	4,429,000	4,198,000	4,274,000	868,000	2,088,000	4,633,000	4,623,000	4,507,000	13,769,000	15,851,000	13,324,000
Net income	11,623,000	11,197,000	10,618,000	1,861,000	5,685,000	11,277,000	11,353,000	$ 12,146,000	35,299,000	40,461,000	35,331,000
Total assets	4,634,114,000				4,109,463,000				4,634,114,000	4,109,463,000	3,096,562,000
Loans, net of deferred fees	2,619,261,000				2,533,844,000				2,619,261,000	2,533,844,000	1,886,405,000
Goodwill	167,631,000				167,420,000				167,631,000	167,420,000	83,753,000
Total merger-related costs	101,000	$ 17,000	$ 59,000	$ 2,424,000	9,879,000	$ 661,000	$ 540,000		2,601,000	11,080,000	9,167,000
Banking
Operating Income
Interest income									139,744,000	130,971,000	115,147,000
Intersegment interest allocations									923,000	1,182,000	1,856,000
Total interest expense									8,581,000	10,847,000	7,822,000
Net interest income									132,086,000	121,306,000	109,181,000
Provision for credit losses on loans									12,928,000	517,000	7,224,000
Net interest income after provision									119,158,000	120,789,000	101,957,000
Noninterest income									9,277,000	9,643,000	8,662,000
Noninterest expense									83,149,000	78,159,000	69,164,000
Intersegment expense allocations									404,000	547,000	753,000
Income before income taxes									45,690,000	52,820,000	42,208,000
Income tax expense									12,770,000	14,819,000	11,418,000
Net income									32,920,000	38,001,000	30,790,000
Total assets	4,567,239,000				4,045,801,000				4,567,239,000	4,045,801,000	3,028,721,000
Loans, net of deferred fees	2,572,060,000				2,487,864,000				2,572,060,000	2,487,864,000	1,832,815,000
Goodwill	154,587,000				154,376,000				154,587,000	154,376,000	70,709,000
Total merger-related costs									2,601,000	11,080,000	9,167,000
Factoring
Operating Income
Interest income									10,727,000	11,688,000	14,698,000
Intersegment interest allocations									(923,000)	(1,182,000)	(1,856,000)
Net interest income									9,804,000	10,506,000	12,842,000
Provision for credit losses on loans									305,000	329,000	197,000
Net interest income after provision									9,499,000	10,177,000	12,645,000
Noninterest income									645,000	601,000	912,000
Noninterest expense									6,362,000	6,739,000	6,357,000
Intersegment expense allocations									(404,000)	(547,000)	(753,000)
Income before income taxes									3,378,000	3,492,000	6,447,000
Income tax expense									999,000	1,032,000	1,906,000
Net income									2,379,000	2,460,000	4,541,000
Total assets	66,875,000				63,662,000				66,875,000	63,662,000	67,841,000
Loans, net of deferred fees	47,201,000				45,980,000				47,201,000	45,980,000	53,590,000
Goodwill	13,044,000				13,044,000				13,044,000	13,044,000	13,044,000
HCC (Parent)
Operating Income
Total interest expense									2,321,000	2,314,000	2,315,000
Income before income taxes									26,416,000	17,223,000	11,655,000
Income tax expense									(1,628,000)	(1,481,000)	(1,515,000)
Net income									35,299,000	40,461,000	$ 35,331,000
Total assets	$ 617,940,000				$ 616,889,000				$ 617,940,000	$ 616,889,000

Parent Company only Condensed_3

Parent Company only Condensed Financial Information - Balance Sheets (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Assets
Cash and cash equivalents	$ 1,131,073,000	$ 457,370,000
Total assets	4,634,114,000	4,109,463,000	$ 3,096,562,000
Liabilities and Shareholders' Equity
Subordinated debt, net of issuance costs	39,740,000	39,554,000
Shareholder's equity	577,889,000	576,708,000	$ 367,466,000	$ 271,239,000
Total liabilities and shareholders' equity	4,634,114,000	4,109,463,000
HCC (Parent)
Assets
Cash and cash equivalents	20,378,000	20,260,000
Investment in subsidiary bank	595,681,000	594,868,000
Other assets	1,881,000	1,761,000
Total assets	617,940,000	616,889,000
Liabilities and Shareholders' Equity
Subordinated debt, net of issuance costs	39,740,000	39,554,000
Other liabilities	311,000	627,000
Shareholder's equity	577,889,000	576,708,000
Total liabilities and shareholders' equity	$ 617,940,000	$ 616,889,000

Parent Company only Condensed_4

Parent Company only Condensed Financial Information - Statements of Operations (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Condensed statements of income
Interest expense	$ (1,940)	$ (2,087)	$ (2,192)	$ (2,362)	$ (3,242)	$ (2,625)	$ (2,573)	$ (2,407)	$ (8,581)	$ (10,847)	$ (7,822)
Income before income taxes	16,052	15,395	14,892	2,729	7,773	15,910	15,976	16,653	49,068	56,312	48,655
Income tax benefit	(4,429)	(4,198)	(4,274)	(868)	(2,088)	(4,633)	(4,623)	(4,507)	(13,769)	(15,851)	(13,324)
Net income	$ 11,623	$ 11,197	$ 10,618	$ 1,861	$ 5,685	$ 11,277	$ 11,353	$ 12,146	35,299	40,461	35,331
HCC (Parent)
Condensed statements of income
Dividend from subsidiary bank									32,000	22,500	17,000
Other Income										121
Interest expense									(2,321)	(2,314)	(2,315)
Other expenses									(3,263)	(3,084)	(3,030)
Income before income taxes									26,416	17,223	11,655
Equity in undistributed net income of subsidiary bank									7,255	21,757	22,161
Income tax benefit									1,628	1,481	1,515
Net income									$ 35,299	$ 40,461	$ 35,331

Parent Company only Condensed_5

Parent Company only Condensed Financial Information - Statements of Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Cash flows from operating activities:
Net Income	$ 11,623	$ 11,197	$ 10,618	$ 1,861	$ 5,685	$ 11,277	$ 11,353	$ 12,146	$ 35,299	$ 40,461	$ 35,331
Adjustments to reconcile net income to net cash provided by operations:
Amortization of restricted stock award, net									1,689	1,283	1,109
Net cash provided by operating activities									58,086	50,343	48,572
Cash flows from financing activities:
Proceeds from exercise of stock options									1,714	1,626	2,667
Net cash provided by (used in) financing activities									470,025	(28,780)	(277,882)
Net increase in cash and cash equivalents									673,703	292,802	(151,654)
Cash and cash equivalents, beginning of period				457,370				164,568	457,370	164,568	316,222
Cash and cash equivalents, end of period	1,131,073				457,370				1,131,073	457,370	164,568
HCC (Parent)
Cash flows from operating activities:
Net Income									35,299	40,461	35,331
Adjustments to reconcile net income to net cash provided by operations:
Amortization of restricted stock award, net									1,689	1,283	1,109
Equity in undistributed net income of subsidiary bank									(7,255)	(21,757)	(22,161)
Net change in other assets and liabilities									(250)	12	(64)
Net cash provided by operating activities									29,483	19,999	14,215
Cash flows from financing activities:
Payment of cash dividends									(31,079)	(22,723)	(18,464)
Proceeds from exercise of stock options									1,714	1,626	2,667
Net cash provided by (used in) financing activities									(29,365)	(21,097)	(15,797)
Net increase in cash and cash equivalents									118	(1,098)	(1,582)
Cash and cash equivalents, beginning of period				$ 20,260				$ 21,358	20,260	21,358	22,940
Cash and cash equivalents, end of period	$ 20,378				$ 20,260				$ 20,378	$ 20,260	$ 21,358

Quarterly Financial Data (Una_3

Quarterly Financial Data (Unaudited) - Selected Unaudited Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Quarterly Financial Data (Unaudited)
Interest income	$ 36,145	$ 36,252	$ 37,132	$ 40,942	$ 42,471	$ 33,250	$ 33,489	$ 33,449	$ 150,471	$ 142,659	$ 129,845
Interest expense	1,940	2,087	2,192	2,362	3,242	2,625	2,573	2,407	8,581	10,847	7,822
Net interest income	34,205	34,165	34,940	38,580	39,229	30,625	30,916	31,042	141,890	131,812	122,023
Provision (recapture) for credit losses on loans	(1,348)	197	1,114	13,270	3,223	(576)	(740)	(1,061)	13,233	846	7,421
Net interest income after provision for credit losses on loans	35,553	33,968	33,826	25,310	36,006	31,201	31,656	32,103	128,657	130,966	114,602
Noninterest income	2,056	2,595	2,078	3,193	2,393	2,618	2,765	2,468	9,922	10,244	9,574
Noninterest expense	21,557	21,168	21,012	25,774	30,626	17,909	18,445	17,918	89,511	84,898	75,521
Income before income taxes	16,052	15,395	14,892	2,729	7,773	15,910	15,976	16,653	49,068	56,312	48,655
Income tax expense	4,429	4,198	4,274	868	2,088	4,633	4,623	4,507	13,769	15,851	13,324
Net income	$ 11,623	$ 11,197	$ 10,618	$ 1,861	$ 5,685	$ 11,277	$ 11,353	$ 12,146	$ 35,299	$ 40,461	$ 35,331
Earnings per common share:
Basic (in dollars per share)	$ 0.19	$ 0.19	$ 0.18	$ 0.03	$ 0.10	$ 0.26	$ 0.26	$ 0.28	$ 0.59	$ 0.87	$ 0.85
Diluted (in dollars per share)	$ 0.19	$ 0.19	$ 0.18	$ 0.03	$ 0.10	$ 0.26	$ 0.26	$ 0.28	$ 0.59	$ 0.84	$ 0.84

Quarterly Financial Data (Una_4

Quarterly Financial Data (Unaudited) - Acquisition and Integration Costs (Details) - USD ($)	3 Months Ended							12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Business Combinations
Total merger-related costs	$ 101,000	$ 17,000	$ 59,000	$ 2,424,000	$ 9,879,000	$ 661,000	$ 540,000	$ 2,601,000	$ 11,080,000	$ 9,167,000
Banking
Business Combinations
Total merger-related costs								$ 2,601,000	$ 11,080,000	$ 9,167,000

Subsequent Events (Details)

Subsequent Events (Details) - $ / shares	Jan. 28, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Subsequent Event [Line Items]
Quarterly cash dividends declared to holders of common stock		$ 0.52	$ 0.48	$ 0.44
Subsequent Event
Subsequent Event [Line Items]
Quarterly cash dividends declared to holders of common stock	$ 0.13