Heritage Commerce (HTBK) 10-Q8 Nov 212021 Q3 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2021	Oct. 29, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2021
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 Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		60,270,034
Document Fiscal Year Focus	2021
Entity Central Index Key	0001053352
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Assets
Cash and due from banks	$ 33,013	$ 30,598
Other investments and interest-bearing deposits in other financial institutions	1,588,334	1,100,475
Total cash and cash equivalents	1,621,347	1,131,073
Securities available-for-sale, at fair value	121,000	235,774
Securities held-to-maturity, at amortized cost, net of allowance for credit losses of $45 at September 30, 2021 and $54 at December 31, 2020 (fair value of $539,433 at September 30, 2021 and $304,927 at December 31, 2020)	537,285	297,389
Loans held-for-sale - SBA, at lower of cost or fair value, including deferred costs	3,678	1,699
Loans, net of deferred fees	2,832,859	2,619,261
Allowance for credit losses on loans	(43,680)	(44,400)
Loans, net	2,789,179	2,574,861
Federal Home Loan Bank, Federal Reserve Bank stock and other investments, at cost	32,499	33,522
Company-owned life insurance	77,509	77,523
Premises and equipment, net	9,821	10,459
Goodwill	167,631	167,631
Other intangible assets	14,423	16,664
Accrued interest receivable and other assets	88,630	87,519
Total assets	5,463,002	4,634,114
Deposits:
Demand, noninterest-bearing	1,804,965	1,661,655
Demand, interest-bearing	1,141,944	960,179
Savings and money market	1,600,754	1,119,968
Time deposits - under $250	39,628	45,027
Time deposits - $250 and over	103,046	103,746
CDARS - interest-bearing demand, money market and time deposits	36,044	23,911
Total deposits	4,726,381	3,914,486
Subordinated debt, net of issuance costs	39,878	39,740
Accrued interest payable and other liabilities	106,625	101,999
Total liabilities	4,872,884	4,056,225
Shareholders' equity:
Preferred stock, no par value; 10,000,000 shares authorized; none issued and outstanding at September 30, 2021 and December 31, 2020
Common stock, no par value; 100,000,000 shares authorized; 60,266,316 shares issued and outstanding at September 30, 2021 and 59,917,457 shares issued and outstanding at December 31, 2020	496,622	493,707
Retained earnings	105,202	94,899
Accumulated other comprehensive loss	(11,706)	(10,717)
Total shareholders' equity	590,118	577,889
Total liabilities and shareholders' equity	$ 5,463,002	$ 4,634,114

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Securities held-to-maturity
Allowance for credit losses	$ 45	$ 54
Securities held-to-maturity, fair value (in dollars)	$ 539,433	$ 304,927
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	60,266,316	59,917,457
Common stock, shares outstanding	60,266,316	59,917,457

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Interest income:
Loans, including fees	$ 36,207	$ 32,635	$ 103,482	$ 100,262
Securities, taxable	2,320	2,481	5,992	9,584
Securities, exempt from Federal tax	382	463	1,215	1,458
Other investments, interest-bearing deposits in other financial institutions and Federal funds sold	998	673	2,611	3,022
Total interest income	39,907	36,252	113,300	114,326
Interest expense:
Deposits	1,141	1,504	3,552	4,904
Subordinated debt	584	583	1,732	1,737
Total interest expense	1,725	2,087	5,284	6,641
Net interest income before provision for credit losses on loans	38,182	34,165	108,016	107,685
Provision for (recapture of) credit losses on loans	(514)	197	(2,519)	14,581
Net interest income after provision for credit losses on loans	38,696	33,968	110,535	93,104
Noninterest income:
Gain on sales of SBA loans	594	400	1,227	467
Increase in cash surrender value of life insurance	470	464	1,384	1,380
Servicing income	129	187	415	575
Gain on proceeds from company owned life insurance	109		571
Gain on sales of securities				270
Other	522	912	1,437	2,132
Total noninterest income	2,408	2,595	6,878	7,866
Noninterest expense:
Salaries and employee benefits	12,461	11,967	38,991	38,470
Occupancy and equipment	2,151	2,283	6,672	5,821
Professional fees	1,211	1,352	4,701	3,942
Other	6,008	5,566	20,486	19,721
Total noninterest expense	21,831	21,168	70,850	67,954
Income before income taxes	19,273	15,395	46,563	33,016
Income tax expense	5,555	4,198	12,828	9,340
Net income	$ 13,718	$ 11,197	$ 33,735	$ 23,676
Earnings per common share:
Basic (in dollars per share)	$ 0.23	$ 0.19	$ 0.56	$ 0.40
Diluted (in dollars per share)	$ 0.23	$ 0.19	$ 0.56	$ 0.39
Service charges and fees on deposit accounts
Noninterest income:
Non-interest income	$ 584	$ 632	$ 1,844	$ 2,251
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	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	Gain on the disposition of foreclosed assets

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 13,718	$ 11,197	$ 33,735	$ 23,676
Other comprehensive income (loss):
Change in net unrealized holding (losses) gains on available-for-sale securities and I/O strips	(366)	(1,783)	(1,855)	4,838
Deferred income taxes	107	517	540	(1,403)
Change in net unamortized unrealized gain on securities available-for-sale that were reclassified to securities held-to-maturity	(13)	(13)	(39)	(39)
Deferred income taxes	4	4	12	12
Reclassification adjustment for gains realized in income				(270)
Deferred income taxes				79
Change in unrealized (losses) gains on securities and I/O strips, net of deferred income taxes	(268)	(1,275)	(1,342)	3,217
Change in net pension and other benefit plan liability adjustment	132	101	504	251
Deferred income taxes	(38)	(30)	(151)	(74)
Change in pension and other benefit plan liability, net of deferred income taxes	94	71	353	177
Other comprehensive (loss) income	(174)	(1,204)	(989)	3,394
Total comprehensive income	$ 13,544	$ 9,993	$ 32,746	$ 27,070

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Common StockAdjusted Balance	Common Stock	Retained EarningsAdjusted Balance	Retained EarningsAdjustment	Retained Earnings	Accumulated Other Comprehensive LossAdjusted Balance	Accumulated Other Comprehensive Loss	Adjusted Balance	Adjustment	Total
Balance at Dec. 31, 2019	$ 489,745	$ 489,745	$ 90,679	$ (6,062)	$ 96,741	$ (9,778)	$ (9,778)	$ 570,646	$ (6,062)	$ 576,708
Balance (in shares) at Dec. 31, 2019	59,368,156	59,368,156
Increase (Decrease) in Shareholders' Equity
Net income					1,861					1,861
Other comprehensive income (loss)							5,069			5,069
Amortization of restricted stock awards, net of forfeitures and taxes		$ 348								348
Cash dividend declared					(7,737)					(7,737)
Stock option expense, net of forfeitures and taxes		148								148
Stock options exercised		$ 1,106								1,106
Stock options exercised (in shares)		200,063
Balance at Mar. 31, 2020		$ 491,347			84,803		(4,709)			571,441
Balance (in shares) at Mar. 31, 2020		59,568,219
Balance at Dec. 31, 2019	$ 489,745	$ 489,745	$ 90,679	$ (6,062)	96,741	$ (9,778)	(9,778)	$ 570,646	$ (6,062)	576,708
Balance (in shares) at Dec. 31, 2019	59,368,156	59,368,156
Increase (Decrease) in Shareholders' Equity
Net income										23,676
Other comprehensive income (loss)							3,394			3,394
Balance at Sep. 30, 2020		$ 493,126			91,065		(6,384)			577,807
Balance (in shares) at Sep. 30, 2020		59,914,987
Balance at Mar. 31, 2020		$ 491,347			84,803		(4,709)			571,441
Balance (in shares) at Mar. 31, 2020		59,568,219
Increase (Decrease) in Shareholders' Equity
Net income					10,618					10,618
Other comprehensive income (loss)							(471)			(471)
Issuance (forfeitures) of restricted stock awards, net (in shares)		168,117
Amortization of restricted stock awards, net of forfeitures and taxes		$ 463								463
Cash dividend declared					(7,767)					(7,767)
Stock option expense, net of forfeitures and taxes		139								139
Stock options exercised		$ 384								384
Stock options exercised (in shares)		120,431
Balance at Jun. 30, 2020		$ 492,333			87,654		(5,180)			574,807
Balance (in shares) at Jun. 30, 2020		59,856,767
Increase (Decrease) in Shareholders' Equity
Net income					11,197					11,197
Other comprehensive income (loss)							(1,204)			(1,204)
Amortization of restricted stock awards, net of forfeitures and taxes		$ 439								439
Cash dividend declared					(7,786)					(7,786)
Stock option expense, net of forfeitures and taxes		136								136
Stock options exercised		$ 218								218
Stock options exercised (in shares)		58,220
Balance at Sep. 30, 2020		$ 493,126			91,065		(6,384)			577,807
Balance (in shares) at Sep. 30, 2020		59,914,987
Balance at Dec. 31, 2020		$ 493,707			94,899		(10,717)			577,889
Balance (in shares) at Dec. 31, 2020		59,917,457
Increase (Decrease) in Shareholders' Equity
Net income					11,204					11,204
Other comprehensive income (loss)							(551)			(551)
Issuance (forfeitures) of restricted stock awards, net (in shares)		(34,358)
Amortization of restricted stock awards, net of forfeitures and taxes		$ 458								458
Cash dividend declared					(7,789)					(7,789)
Stock option expense, net of forfeitures and taxes		132								132
Stock options exercised		$ 320								320
Stock options exercised (in shares)		49,235
Balance at Mar. 31, 2021		$ 494,617			98,314		(11,268)			581,663
Balance (in shares) at Mar. 31, 2021		59,932,334
Balance at Dec. 31, 2020		$ 493,707			94,899		(10,717)			577,889
Balance (in shares) at Dec. 31, 2020		59,917,457
Increase (Decrease) in Shareholders' Equity
Net income										33,735
Other comprehensive income (loss)							(989)			(989)
Balance at Sep. 30, 2021		$ 496,622			105,202		(11,706)			590,118
Balance (in shares) at Sep. 30, 2021		60,266,316
Balance at Mar. 31, 2021		$ 494,617			98,314		(11,268)			581,663
Balance (in shares) at Mar. 31, 2021		59,932,334
Increase (Decrease) in Shareholders' Equity
Net income					8,813					8,813
Other comprehensive income (loss)							(264)			(264)
Issuance (forfeitures) of restricted stock awards, net (in shares)		187,325
Amortization of restricted stock awards, net of forfeitures and taxes		$ 438								438
Cash dividend declared					(7,816)					(7,816)
Stock option expense, net of forfeitures and taxes		146								146
Stock options exercised		$ 464								464
Stock options exercised (in shares)		83,107
Balance at Jun. 30, 2021		$ 495,665			99,311		(11,532)			583,444
Balance (in shares) at Jun. 30, 2021		60,202,766
Increase (Decrease) in Shareholders' Equity
Net income					13,718					13,718
Other comprehensive income (loss)							(174)			(174)
Amortization of restricted stock awards, net of forfeitures and taxes		$ 522								522
Cash dividend declared					(7,827)					(7,827)
Stock option expense, net of forfeitures and taxes		150								150
Stock options exercised		$ 285								285
Stock options exercised (in shares)		63,550
Balance at Sep. 30, 2021		$ 496,622			$ 105,202		$ (11,706)			$ 590,118
Balance (in shares) at Sep. 30, 2021		60,266,316

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
Cash dividend declared per share (in dollars per share)	$ 0.13	$ 0.13	$ 0.13	$ 0.13	$ 0.13	$ 0.13

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 33,735	$ 23,676
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of discounts and premiums on securities	2,784	2,608
Gain on sale of securities available-for-sale		(270)
Gain on sale of SBA loans	(1,227)	(467)
Proceeds from sale of SBA loans originated for sale	12,805	6,465
SBA loans originated for sale	(13,557)	(8,511)
Gain on the disposition of foreclosed assets		(791)
Provision for (recapture of) credit losses on loans	(2,519)	14,581
Increase in cash surrender value of life insurance	(1,384)	(1,380)
Depreciation and amortization	792	712
Amortization of other intangible assets	2,241	2,787
Stock option expense, net	428	423
Amortization of restricted stock awards, net	1,418	1,250
Amortization of subordinated debt issuance costs	138	139
Gain on proceeds from company-owned life insurance	(571)	(20)
Effect of changes in:
Accrued interest receivable and other assets	(770)	(520)
Accrued interest payable and other liabilities	5,091	(5,453)
Net cash provided by operating activities	39,404	35,229
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of securities held-to-maturity	(322,348)
Maturities/paydowns/calls of securities available-for-sale	111,800	57,627
Maturities/paydowns/calls of securities held-to-maturity	80,847	68,839
Proceeds from sales of securities available-for-sale		56,598
Purchase of mortgage loans	(181,968)
Proceeds from the disposition of foreclosed assets		791
Net change in loans	(29,831)	(163,727)
Changes in Federal Home Loan Bank stock and other investments	1,023	(3,676)
Purchase of premises and equipment	(154)	(2,874)
Proceeds from redemption of company-owned life insurance	1,969	368
Net cash (used in) provided by investing activities	(338,662)	13,946
CASH FLOWS FROM FINANCING ACTIVITIES:
Net change in deposits	811,895	475,633
Net change in short-term borrowings		(328)
Exercise of stock options	1,069	1,708
Payment of cash dividends	(23,432)	(23,290)
Net cash provided by financing activities	789,532	453,723
Net increase in cash and cash equivalents	490,274	502,898
Cash and cash equivalents, beginning of period	1,131,073	457,370
Cash and cash equivalents, end of period	1,621,347	960,268
Supplemental disclosures of cash flow information:
Interest paid	4,628	6,117
Income taxes paid, net	$ 12,392	10,640
Supplemental schedule of non-cash activity:
Recording of right to use assets in exchange for lease obligations		$ 26,654

Basis of Presentation

Basis of Presentation	9 Months Ended
Basis of Presentation	Sep. 30, 2021
Basis of Presentation
Basis of Presentation	1) Basis of Presentation The unaudited consolidated financial statements of Heritage Commerce Corp (the “Company” or “HCC”) and its wholly owned subsidiary, Heritage Bank of Commerce (the “Bank” or “HBC”), have been prepared pursuant to the rules and regulations for reporting on Form 10-Q. Accordingly, certain information and notes required by accounting principles generally accepted in the United States of America (“GAAP”) for annual financial statements are not included herein. The interim statements should be read in conjunction with the consolidated financial statements and notes that were included in the Company’s Form 10-K for the year ended December 31, 2020. HBC is a commercial bank serving customers primarily located 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, and provides business-essential working capital factoring financing to various industries throughout the United States. No customer accounts for more than 10% of revenue for HBC or the Company. The Company reports its results for two segments: banking and factoring. The Company’s management uses segment results in its operating and strategic planning. In management’s opinion, all adjustments necessary for a fair presentation of these consolidated financial statements have been included and are of a normal and recurring nature. All intercompany transactions and balances have been eliminated. The preparation of financial statements in conformity with GAAP 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ significantly from these estimates. Material estimates that are particularly susceptible to significant change include the determination of the allowance for credit losses and any impairment of goodwill or intangible assets. It is reasonably possible the Company’s estimate of the allowance for credit losses and evaluation of impairment of goodwill or intangible assets could change as a result of the continued impact of the COVID-19 pandemic on the economy. The resulting change in these estimates could be material to the Company’s consolidated financial statements. The results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results expected for any subsequent period or for the entire year ending December 31, 2021. 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. 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. Reclassifications Certain reclassifications of prior year balances have been made to conform to the current year presentation. These reclassifications had no impact on the Company’s consolidated financial position, results of operations or net change in cash and cash equivalents. Adoption of New Accounting Standards In December 2019, the FASB issued Accounting Standards Update No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes to simplify various aspects of the current guidance to promote consistent application of the standard among reporting entities by moving certain exceptions to the general principles. The amendments are effective as of January 1, 2021 and had no material impact on the consolidated financial statements. Accounting Guidance Issued But Not Yet Adopted 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. London Inter-Bank Offered Rate (“LIBOR”) Transition and Phase-Out We have loans and borrowings that are tied to LIBOR benchmark interest rates. 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. The Company continues to implement its transition plan toward the cessation of LIBOR and the modification of its loans and other financial instruments with attributes that are either directly or indirectly influenced by LIBOR. The Company expects to utilize the LIBOR transition relief allowed under ASU 2020-04, and does not expect such an adoption to have a material impact on its accounting and disclosures. The Company will continue to assess the impact as the reference rate transition occurs over the next two years.

Earnings Per Share

Earnings Per Share	9 Months Ended
Earnings Per Share	Sep. 30, 2021
Shareholders' Equity and Earnings Per Share
Earnings Per Share	2) Earnings Per Share Basic earnings per common share is computed by dividing net income by the weighted average common shares outstanding. Diluted earnings per share reflect potential dilution from outstanding stock options using the treasury stock method. There were 1,056,216 and 1,741,568 weighted average stock options outstanding for the three months ended September 30, 2021 and 2020, and 1,066,216 and 1,507,437 for the nine months ended September 30, 2021 and 2020, respectively, considered to be antidilutive and excluded from the computation of diluted earnings per share. A reconciliation of these factors used in computing basic and diluted earnings per common share is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 (Dollars in thousands, except per share amounts) Net income $ 13,718 $ 11,197 $ 33,735 $ 23,676 Weighted average common shares outstanding for basic earnings per common share 60,220,717 59,589,243 60,078,953 59,432,178 Dilutive potential common shares 539,472 552,169 556,351 711,585 Shares used in computing diluted earnings per common share 60,760,189 60,141,412 60,635,304 60,143,763 Basic earnings per share $ 0.23 $ 0.19 $ 0.56 $ 0.40 Diluted earnings per share $ 0.23 $ 0.19 $ 0.56 $ 0.39

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss) ("AOCI")	9 Months Ended
Accumulated Other Comprehensive Income (Loss) ("AOCI")	Sep. 30, 2021
Accumulated Other Comprehensive Income ("AOCI")
Accumulated Other Comprehensive Income ("AOCI")	3) Accumulated Other Comprehensive Income (Loss) (“AOCI”) The following table reflects the changes in AOCI by component for the periods indicated: Three Months Ended September 30, 2021 and 2020 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 July 1, 2021, net of taxes $ 2,873 $ 243 $ (14,648) $ (11,532) Other comprehensive income (loss) before reclassification, net of taxes (259) — (1) (260) Amounts reclassified from other comprehensive income (loss), net of taxes — (9) 95 86 Net current period other comprehensive income (loss), net of taxes (259) (9) 94 (174) Ending balance September 30, 2021, net of taxes $ 2,614 $ 234 $ (14,554) $ (11,706) Beginning balance July 1, 2020, net of taxes $ 6,112 $ 280 $ (11,572) $ (5,180) Other comprehensive loss before reclassification, net of taxes (1,266) — (130) (1,396) Amounts reclassified from other comprehensive income (loss), net of taxes — (9) 201 192 Net current period other comprehensive income (loss), net of taxes (1,266) (9) 71 (1,204) Ending balance September 30, 2020, net of taxes $ 4,846 $ 271 $ (11,501) $ (6,384) (1) This AOCI component is included in the computation of net periodic benefit cost (see Note 8—Benefit Plans) and includes split-dollar life insurance benefit plan. Nine Months Ended September 30, 2021 and 2020 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, 2021, net of taxes $ 3,929 $ 261 $ (14,907) $ (10,717) Other comprehensive loss before reclassification, net of taxes (1,315) — (3) (1,318) Amounts reclassified from other comprehensive income (loss), net of taxes — (27) 356 329 Net current period other comprehensive income (loss), net of taxes (1,315) (27) 353 (989) Ending balance September 30, 2021, net of taxes $ 2,614 $ 234 $ (14,554) $ (11,706) Beginning balance January 1, 2020, net of taxes $ 1,602 $ 298 $ (11,678) $ (9,778) Other comprehensive income (loss) before reclassification, net of taxes 3,435 — (136) 3,299 Amounts reclassified from other comprehensive income (loss), net of taxes (191) (27) 313 95 Net current period other comprehensive income (loss), net of taxes 3,244 (27) 177 3,394 Ending balance September 30, 2020, net of taxes $ 4,846 $ 271 $ (11,501) $ (6,384) (1) This AOCI component is included in the computation of net periodic benefit cost (see Note 8—Benefit Plans) and includes split-dollar life insurance benefit plan. Amounts Reclassified from AOCI Three Months Ended September 30, Affected Line Item Where Details About AOCI Components 2021 2020 Net Income is Presented (Dollars in thousands) Unrealized gains on available-for-sale securities and I/O strips $ — $ — Gain on sales of securities — — Income tax expense — — Net of tax Amortization of unrealized gain on securities available- for-sale that were reclassified to securities held-to-maturity 13 13 Interest income on taxable securities (4) (4) Income tax expense 9 9 Net of tax Amortization of defined benefit pension plan items (1) Prior transition obligation and actuarial losses (2) 1 15 Prior service cost and actuarial losses (3) (136) (300) (135) (285) Other noninterest expense 40 84 Income tax benefit (95) (201) Net of tax Total reclassification from AOCI for the period $ (86) $ (192) Amounts Reclassified from AOCI Nine Months Ended September 30, Affected Line Item Where Details About AOCI Components 2021 2020 Net Income is Presented (Dollars in thousands) Unrealized gains on available-for-sale securities and I/O strips $ — $ 270 Gain on sales of securities — (79) Income tax expense — 191 Net of tax Amortization of unrealized gain on securities available-for-sale that were reclassified to securities held-to-maturity 39 39 Interest income on taxable securities (12) (12) Income tax expense 27 27 Net of tax Amortization of defined benefit pension plan items (1) Prior transition obligation and actuarial losses (2) 3 45 Prior service cost and actuarial losses (3) (508) (490) (505) (445) Other noninterest expense 149 132 Income tax benefit (356) (313) Net of tax Total reclassification from AOCI for the period $ (329) $ (95) (1) This AOCI component is included in the computation of net periodic benefit cost (see Note 8—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	9 Months Ended
Securities	Sep. 30, 2021
Securities
Securities	4) Securities The amortized cost and estimated fair value of securities were as follows for the periods indicated: Gross Gross Allowance Estimated Amortized Unrealized Unrealized for Credit Fair September 30, 2021 Cost Gains (Losses) Losses Value (Dollars in thousands) Securities available-for-sale: Agency mortgage-backed securities $ 112,041 $ 3,955 $ — $ — $ 115,996 U.S. Treasury 4,993 11 — — 5,004 Total $ 117,034 $ 3,966 $ — $ — $ 121,000 Gross Gross Estimated Allowance Amortized Unrecognized Unrecognized Fair for Credit September 30, 2021 Cost Gains (Losses) Value Losses (Dollars in thousands) Securities held-to-maturity: Agency mortgage-backed securities $ 480,333 $ 4,487 $ (3,373) $ 481,447 $ — Municipals - exempt from Federal tax 56,997 989 — 57,986 (45) Total $ 537,330 $ 5,476 $ (3,373) $ 539,433 $ (45) 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) Securities with unrealized losses at September 30, 2021 and December 31, 2020, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position are as follows: Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized September 30, 2021 Value (Losses) Value (Losses) Value (Losses) (Dollars in thousands) Securities held-to-maturity: Agency mortgage-backed securities $ 283,966 $ (3,372) $ 237 $ (1) $ 284,203 $ (3,373) Total $ 283,966 $ (3,372) $ 237 $ (1) $ 284,203 $ (3,373) 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) 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 September 30, 2021, the Company held 405 securities (105 available-for-sale and 300 held-to-maturity), of which forty had fair value below amortized cost. At September 30, 2021, there were $283,966,000 of agency mortgage-backed securities held-to-maturity, carried with an unrealized loss for less than 12 months, and $237,000 of agency mortgage-backed securities held-to-maturity, carried with an unrealized loss for 12 months or more. The total unrealized loss for securities carried less than 12 months was ($3,372,000), and the total unrealized loss for securities carried for 12 months or more was ($1,000) at September 30, 2021. The unrealized loss was due to higher interest rates in comparison to when the security was purchased. The issuer is 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. Therefore, the Company does not consider these debt securities to have credit-related losses as of September 30, 2021. The proceeds from sales of securities and the resulting gains and losses were as follows for the periods indicated: Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 (Dollars in thousands) Proceeds $ — $ — $ — $ 56,598 Gross gains — — — 270 Gross losses — — — — The amortized cost and estimated fair values of securities as of September 30, 2021 are shown by contractual maturity below. The expected maturities will differ from contractual maturities if borrowers have the right to call or pre-pay obligations with or without call or pre-payment 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 $ 4,993 $ 5,004 Agency mortgage-backed securities 112,041 115,996 Total $ 117,034 $ 121,000 Held-to-maturity Amortized Estimated Cost Fair Value (Dollars in thousands) Due after 3 months through one year $ 537 $ 549 Due after one through five years 10,347 10,548 Due after five through ten years 29,564 30,003 Due after ten years 16,549 16,886 Agency mortgage-backed securities 480,333 481,447 Total $ 537,330 $ 539,433 Securities with amortized cost of $42,767,000 and $40,238,000 as of September 30, 2021 and December 31, 2020 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 nine months ended September 30, 2021 of the allowance for credit losses on debt securities held-to-maturity held at period end: Municipals (Dollars in thousands) Beginning balance January 1, 2021 $ 54 Provision for (recapture of) credit losses (9) Ending balance September 30, 2021 $ 45 For the nine months ended September 30, 2021, there was a reduction of $9,000 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 September 30, 2021 were consistent with the ratings at December 31, 2020.

Loans and Allowance for Credit

Loans and Allowance for Credit Losses on Loans	9 Months Ended
Loans and Allowance for Credit Losses on Loans	Sep. 30, 2021
Loans and Allowance for Credit Losses on Loans
Loans and Allowance for Credit Losses on Loans	5) 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 mortgages 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 $164,506,000 of Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”) loans at September 30, 2021 and $290,679,000 at December 31, 2020. No allowance for credit losses has been recorded for PPP loans as they are fully guaranteed by the SBA. Commercial Real Estate (“CRE”) CRE 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. CRE loans comprise two segments differentiated by owner occupied CRE and non-owner CRE. Owner occupied CRE loans are secured by commercial properties that are at least 50% occupied by the borrower or borrower affiliate. Non-owner occupied CRE loans are secured by commercial properties that are less than 50% occupied by the borrower or borrower affiliate. CRE 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 on 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 residential properties with five or more units. 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 on 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. a % (net of servicing fees). During the second quarter of 2021, the Company purchased two single family residential mortgage loan portfolios totaling $140,030,000, tied to home all located in California, with average principal balances of $585,000, and a weighted average yield of approximately 3.37 % (net of servicing fees). 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 values can vary depending on economic conditions. Loans by portfolio segment and the allowance for credit losses on loans were as follows for the periods indicated: September 30, December 31, 2021 2020 (Dollars in thousands) Loans held-for-investment: Commercial $ 743,450 $ 846,386 Real estate: CRE - owner occupied 580,624 560,362 CRE - non-owner occupied 829,022 693,103 Land and construction 141,277 144,594 Home equity 106,690 111,885 Multifamily 205,952 166,425 Residential mortgages 211,467 85,116 Consumer and other 20,106 18,116 Loans 2,838,588 2,625,987 Deferred loan fees, net (5,729) (6,726) Loans, net of deferred fees 2,832,859 2,619,261 Allowance for credit losses on loans (43,680) (44,400) Loans, net $ 2,789,179 $ 2,574,861 Changes in the allowance for credit losses on loans were as follows for the periods indicated: Three Months Ended September 30, 2021 CRE CRE 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 $ 10,857 $ 8,206 $ 16,485 $ 2,136 $ 1,069 $ 2,950 $ 1,968 $ 285 $ 43,956 Charge-offs (65) — — — — — — — (65) Recoveries 263 4 — — 36 — — — 303 Net recoveries 198 4 — — 36 — — — 238 Provision for (recapture of) credit losses on loans (822) 57 665 (112) (94) (61) (97) (50) (514) End of period balance $ 10,233 $ 8,267 $ 17,150 $ 2,024 $ 1,011 $ 2,889 $ 1,871 $ 235 $ 43,680 Three Months Ended September 30, 2020 CRE CRE 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 $ 13,179 $ 8,547 $ 15,449 $ 2,552 $ 1,851 $ 1,828 $ 825 $ 1,213 $ 45,444 Charge-offs (502) - - - - - - (96) (598) Recoveries 343 - - 19 16 - - 1 379 Net (charge-offs) recoveries (159) - - 19 16 - - (95) (219) Provision for (recapture of) credit losses on loans (220) 736 (124) (27) 14 21 (46) (157) 197 End of period balance $ 12,800 $ 9,283 $ 15,325 $ 2,544 $ 1,881 $ 1,849 $ 779 $ 961 $ 45,422 Nine Months Ended September 30, 2021 CRE CRE 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 $ 11,587 $ 8,560 $ 16,416 $ 2,509 $ 1,297 $ 2,804 $ 943 $ 284 $ 44,400 Charge-offs (433) — — — — — — — (433) Recoveries 1,191 12 — 884 75 — — 70 2,232 Net recoveries 758 12 — 884 75 — — 70 1,799 Provision for (recapture of) credit losses on loans (2,112) (305) 734 (1,369) (361) 85 928 (119) (2,519) End of period balance $ 10,233 $ 8,267 $ 17,150 $ 2,024 $ 1,011 $ 2,889 $ 1,871 $ 235 $ 43,680 Nine Months Ended September 30, 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 (1,637) — — — — — — (99) (1,736) Recoveries 598 1 — 51 70 — — 2 722 Net (charge-offs) recoveries (1,039) 1 — 51 70 — — (97) (1,014) Provision for (recapture of) credit losses on loans 7,049 2,288 3,653 1,035 490 596 101 (631) 14,581 End of period balance $ 12,800 $ 9,283 $ 15,325 $ 2,544 $ 1,881 $ 1,849 $ 779 $ 961 $ 45,422 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 forecast period. The economic factors management has selected include the California unemployment rate, California gross domestic 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 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 decrease in the allowance for credit losses on loans and related negative provision for credit losses on loans for the nine months ended September 30, 2021, was primarily attributed to a net decrease of $199,000 in the reserve for pooled loans, driven by improvements in forecasted macroeconomic conditions offset by changes in the portfolio, and a $521,000 decrease in specific reserves for individually evaluated loans compared to December 31, 2020. The decrease in the allowance for credit losses for pooled loans from December 31, 2020 is largely the result of improvements in the economic factors used in our methodology and reductions in qualitative adjustments for 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. The following tables presents the amortized cost basis of nonperforming loans and loans past due over 90 days and still accruing for the periods indicated: September 30, 2021 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 $ 89 $ 1,216 $ 157 $ 1,462 Real estate: CRE - Owner Occupied 1,136 — — 1,136 CRE - Non-Owner Occupied — — 485 485 Home equity 94 — — 94 Multifamily 1,149 — — 1,149 Consumer and other 407 — — 407 Total $ 2,875 $ 1,216 $ 642 $ 4,733 December 31, 2020 Restructured Nonaccrual Nonaccrual and Loans with no Specific with no 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 tables presents the aging of past due loans by class for the periods indicated: September 30, 2021 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 $ 5,105 $ 1,070 $ 291 $ 6,466 $ 736,984 $ 743,450 Real estate: CRE - Owner Occupied 568 — 1,136 1,704 578,920 580,624 CRE - Non-Owner Occupied — — 485 485 828,537 829,022 Land and construction — — — — 141,277 141,277 Home equity — — — — 106,690 106,690 Multifamily — — — — 205,952 205,952 Residential mortgages — — — — 211,467 211,467 Consumer and other — — 407 407 19,699 20,106 Total $ 5,673 $ 1,070 $ 2,319 $ 9,062 $ 2,829,526 $ 2,838,588 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 Past due loans 30 days or greater totaled $9,062,000 and $6,229,000 at September 30, 2021 and December 31, 2020, respectively, of which $1,732,000 and $1,918,000 were on nonaccrual, at September 30, 2021 and December 31, 2020, respectively. At September 30, 2021, there were also $2,359,000 of loans less than 30 days past due included in nonaccrual loans held-for-investment. At December 31, 2020, there were also $5,870,000 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. Nonclassified loans generally include those loans that are expected to be repaid in accordance with their contractual loan terms. Loans categorized as special mention have potential weaknesses that may, if not checked or corrected, weaken the credit or inadequately protect the Company’s position at some future date. These loans pose elevated risk, but their weaknesses do not yet justify a substandard classification. Classified loans are those loans that are assigned a substandard, substandard-nonaccrual, or doubtful risk rating using the following definitions: Special Mention. A Special Mention asset has potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in a deterioration of the repayment prospects for the asset or in the credit position at some future date. Special Mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that will jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Substandard-Nonaccrual. Loans classified as substandard-nonaccrual are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any, and it is probable that the Company will not receive payment of the full contractual principal and interest. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. In addition, the Company no longer accrues interest on the loan because of the underlying weaknesses. Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loss. Loans classified as loss are considered uncollectable or of so little value that their continuance as assets is not warranted. This classification does not necessarily mean that a loan has no recovery or salvage value; but rather, there is much doubt about whether, how much, or when the recovery would occur. Loans classified as loss are immediately charged off against the allowance for credit losses on loans. Therefore, there is no balance to report as of September 30, 2021 and December 31, 2020. 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 tables present term loans amortized cost by vintage and loan grade classification, and revolving loans amortized cost by loan grade classification at September 30, 2021 and December 31, 2020. 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 tables below as there are no loans with those grades at September 30, 2021 and 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, 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 as of September 30, 2021 Amortized 2016 and Cost 9/30/2021 12/31/2020 12/31/2019 12/31/2018 12/31/2017 Prior Basis Total (Dollars in thousands) Commercial: Pass $ 244,357 $ 77,588 $ 17,048 $ 14,440 $ 8,248 $ 7,666 $ 357,811 $ 727,158 Special Mention 192 528 225 879 518 225 1,245 3,812 Substandard 1,769 3,266 - 31 472 3 5,634 11,175 Substandard-Nonaccrual 713 440 49 - - 103 - 1,305 Total 247,031 81,822 17,322 15,350 9,238 7,997 364,690 743,450 CRE - Owner Occupied: Pass 117,435 143,755 72,641 58,229 36,514 120,856 14,424 563,854 Special Mention - 7,928 676 - - 363 - 8,967 Substandard - 3,150 - 1,879 735 903 - 6,667 Substandard-Nonaccrual - 1,109 - - - 27 - 1,136 Total 117,435 155,942 73,317 60,108 37,249 122,149 14,424 580,624 CRE - Non-Owner Occupied: Pass 271,803 144,254 119,996 50,388 71,693 143,970 3,646 805,750 Special Mention - 8,152 - - 1,741 8,410 18,303 Substandard - 3,099 - 1,385 - 485 - 4,969 Substandard-Nonaccrual - - - - - - - - Total 271,803 155,505 119,996 51,773 73,434 152,865 3,646 829,022 Land and construction: Pass 108,338 20,750 4,427 - - 1,310 5,093 139,918 Special Mention - - - - - - - - Substandard 1,359 - - - - - - 1,359 Substandard-Nonaccrual - - - - - - - - Total 109,697 20,750 4,427 - - 1,310 5,093 141,277 Home equity: Pass - - - 52 - - 103,690 103,742 Special Mention - - - - - - 1,931 1,931 Substandard - - - - - 143 780 923 Substandard-Nonaccrual - 94 - - - - 94 Total - 94 - 52 - 143 106,401 106,690 Multifamily: Pass 75,736 30,474 35,318 16,238 18,798 20,928 - 197,492 Special Mention 5,833 - - - - - 5,833 Substandard 604 874 - - - - - 1,478 Substandard-Nonaccrual 1,149 - - - - - - 1,149 Total 83,322 31,348 35,318 16,238 18,798 20,928 - 205,952 Residential mortgage: Pass 150,146 18,095 8,130 3,113 6,053 24,672 - 210,209 Special Mention - - - - - - - - Substandard - - - - - 1,258 - 1,258 Substandard-Nonaccrual - - - - - - - - Total 150,146 18,095 8,130 3,113 6,053 25,930 - 211,467 Consumer and other: Pass 408 3 48 1,442 16 1,025 16,740 19,682 Special Mention - - - - - - - - Substandard 17 - - - - - 17 Substandard-Nonaccrual - - - 407 - - - 407 Total 425 3 48 1,849 16 1,025 16,740 20,106 Total loans $ 979,859 $ 463,559 $ 258,558 $ 148,483 $ 144,788 $ 332,347 $ 510,994 $ 2,838,588 Risk Grades: Pass $ 968,223 $ 434,919 $ 257,608 $ 143,902 $ 141,322 $ 320,427 $ 501,404 $ 2,767,805 Special Mention 6,025 16,608 901 879 2,259 8,998 3,176 38,846 Substandard 3,749 10,389 - 3,295 1,207 2,792 6,414 27,846 Substandard-Nonaccrual 1,862 1,643 49 407 - 130 - 4,091 Grand Total $ 979,859 $ 463,559 $ 258,558 $ 148,483 $ 144,788 $ 332,347 $ 510,994 $ 2,838,588 Revolving Loans Term Loans Amortized Cost Basis by Originated Period as of December 31, 2020 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 presents the amortized cost basis of collateral-dependent loans by loan classification at September 30, 2021: Collateral Type Real Estate Business Property Assets Total (Dollars in thousands) Commercial $ 25 $ 1,191 $ 1,216 Total $ 25 $ 1,191 $ 1,216 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 dat

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	9 Months Ended
Goodwill and Other Intangible Assets	Sep. 30, 2021
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets	6) Goodwill and Other Intangible Assets Goodwill At September 30, 2021, 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, $13,819,000 from its acquisition of Tri-Valley Bank, $24,271,000 from its acquisition of United American Bank and $83,878,000 from its acquisition of Presidio Bank. 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 that 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 for the periods indicated: September 30, December 31, 2021 2020 (Dollars in thousands) Banking $ 154,587 $ 154,587 Factoring 13,044 13,044 Total Goodwill $ 167,631 $ 167,631 Other Intangible Assets The Company’s intangible assets are summarized as follows for the periods indicated: September 30, 2021 Gross Carrying Accumulated Amount Amortization Total (Dollars in thousands) Core deposit intangibles $ 25,023 $ (11,274) $ 13,749 Customer relationship and brokered relationship intangibles 1,900 (1,313) 587 Below market leases 770 (683) 87 Total $ 27,693 $ (13,270) $ 14,423 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 As of September 30, 2021, the estimated amortization expense for future periods is as follows: Customer & Below/ Core Brokered (Above) Total Deposit Relationship Market Amortization Year Intangible Intangible Lease Expense (Dollars in thousands) 2021 remaining $ 708 $ 48 $ (1) $ 755 2022 2,447 190 (2) 2,635 2023 2,217 190 (2) 2,405 2024 2,023 159 5 2,187 2025 1,795 — 18 1,813 Thereafter 4,559 — 69 4,628 $ 13,749 $ 587 $ 87 $ 14,423 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 September 30, 2021 and December 31, 2020.

Income Taxes

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2021
Income Taxes
Income Taxes	7) Income Taxes Some items of income and expense are recognized in one year for tax purposes, and another when applying generally accepted accounting principles, which leads to timing differences between the Company’s actual current 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. 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. The Company had net deferred tax assets of $25,314,000, and $28,221,000, at September 30, 2021 and December 31, 2020, respectively. After consideration of the matters in the preceding paragraph, the Company determined that it is more likely than not that the net deferred tax assets at September 30, 2021 and December 31, 2020 will be fully realized in future years. 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: September 30, December 31, 2021 2020 (Dollars in thousands) Low income housing investments $ 4,618 $ 5,246 Future commitments $ 596 $ 596 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 had low income housing tax credits of $210,000 for both the three months ended September 30, 2021 and September 30, 2020, and low income housing investment expense of $209,000 and $211,000, respectively. For tax purposes, the Company had low income housing tax credits of $630,000 for both the nine months ended September 30, 2021 and September 30, 2020, and low income housing investment expense of

Benefit Plans

Benefit Plans	9 Months Ended
Benefit Plans	Sep. 30, 2021
Benefit Plans
Benefit Plans	8) Benefit Plans Supplemental Retirement Plan The Company has a supplemental retirement plan (the “Plan”) covering some current and some former key employees and directors. The Plan is a nonqualified defined benefit plan. Benefits are unsecured as there are no Plan assets. The following table presents the amount of periodic cost recognized for the periods indicated: Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 (Dollars in thousands) Components of net periodic benefit cost: Service cost $ 120 $ 123 $ 360 $ 369 Interest cost 190 234 570 701 Amortization of prior service cost — 199 100 199 Amortization of net actuarial loss 136 101 408 291 Net periodic benefit cost $ 446 $ 657 $ 1,438 $ 1,560 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. Split-Dollar Life Insurance Benefit Plan The Company maintains life insurance policies for some current and former directors and officers that are subject to split-dollar life insurance agreements. The following table sets forth the funded status of the split-dollar life insurance benefits for the periods indicated: September 30, December 31, 2021 2020 (Dollars in thousands) Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 9,689 $ 8,198 Interest cost 164 246 Actuarial loss — 1,245 Projected benefit obligation at end of period $ 9,853 $ 9,689 September 30, December 31, 2021 2020 (Dollars in thousands) Net actuarial loss $ 5,241 $ 5,170 Prior transition obligation 902 970 Accumulated other comprehensive loss $ 6,143 $ 6,140 Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 (Dollars in thousands) Amortization of prior transition obligation and actuarial losses $ (1) $ (15) $ (3) $ (45) Interest cost 54 62 164 185 Net periodic benefit cost $ 53 $ 47 $ 161 $ 140

Fair Value

Fair Value	9 Months Ended
Fair Value	Sep. 30, 2021
Fair Value
Fair Value	9) 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 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 September 30, 2021 Available-for-sale securities: Agency mortgage-backed securities $ 115,996 $ — $ 115,996 $ — U.S. Treasury 5,004 5,004 — — I/O strip receivables 246 — 246 — 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 — There were no transfers between Level 1 and Level 2 during the period for assets measured at fair value on a recurring basis. 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. There were no material collateral dependent loans carried at fair value on a non-recurring basis at September 30, 2021 or December 31, 2020. 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 September 30, 2021 and December 31, 2020, there were no foreclosed assets on the balance sheet. The carrying amounts and estimated fair values of financial instruments at September 30, 2021 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 $ 1,621,347 $ 1,621,347 $ — $ — $ 1,621,347 Securities available-for-sale 121,000 5,004 115,996 — 121,000 Securities held-to-maturity 537,285 — 539,433 — 539,433 Loans (including loans held-for-sale), net 2,792,857 — 3,678 2,807,219 2,810,897 FHLB stock, FRB stock, and other investments 32,499 — — — N/A Accrued interest receivable 9,868 26 1,749 8,093 9,868 I/O strips receivables 246 — 246 — 246 Liabilities: Time deposits $ 149,180 $ — $ 149,441 $ — $ 149,441 Other deposits 4,577,201 — 4,577,201 — 4,577,201 Subordinated debt 39,878 — 40,478 — 40,478 Accrued interest payable 1,062 — 1,062 — 1,062 The carrying amounts and estimated fair values of the Company’s financial instruments at December 31, 2020: 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

Equity Plan

Equity Plan	9 Months Ended
Equity Plan	Sep. 30, 2021
Equity Plan
Equity Plan	10) 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. On May 23, 2013, the Company’s shareholders approved the 2013 Equity Incentive Plan (the “2013 Plan”). On May 21, 2020, the shareholders approved an amendment to the Heritage Commerce Corp 2013 Equity Incentive Plan to increase the number of shares available from 3,000,000 to 5,000,000 shares. 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. For the nine months ended September restricted stock awards that vested was $1,749,000 as of September 30, 2021. There were 1,949,605 shares available for the issuance of equity awards under the 2013 Plan as of September 30, 2021. 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, 2021 2,546,821 $ 9.30 Granted 360,750 $ 12.05 Exercised (195,892) $ 5.47 Forfeited or expired (55,560) $ 12.79 Outstanding at September 30, 2021 2,656,119 $ 9.88 5.57 $ 6,663,854 Vested or expected to vest 2,496,752 5.57 $ 6,264,023 Exercisable at September 30, 2021 1,994,928 4.50 $ 6,146,459 Information related to the equity plans for the periods indicated: Nine Months Ended September 30, 2021 2020 Intrinsic value of options exercised $ 1,103,925 $ 2,242,512 Cash received from option exercise $ 1,069,391 $ 1,707,587 Tax benefit (expense) realized from option exercises $ 58,208 $ 58,575 Weighted average fair value of options granted $ 2.32 $ 1.15 As of September 30, 2021, there was $1,263,000 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 2.79 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 for the periods indicated: Nine Months Ended September 30, 2021 2020 Expected life in months(1) 72 72 Volatility(1) 33 % 29 % Weighted average risk-free interest rate(2) 1.09 % 0.53 % Expected dividends(3) 4.32 % 5.71 % (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. 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, 2021 298,700 $ 10.83 Granted 187,325 $ 12.01 Vested (153,101) $ 11.42 Forfeited or expired (34,358) $ 10.23 Nonvested shares at September 30, 2021 298,566 $ 11.03 As of September 30, 2021, there was $2,679,000 of total unrecognized compensation cost related to nonvested restricted stock awards granted under the equity plans. The cost is expected to be recognized over a weighted-average period of approximately 1.86 years.

Subordinated Debt

Subordinated Debt	9 Months Ended
Subordinated Debt	Sep. 30, 2021
Subordinated Debt
Subordinated Debt	11) 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 Subordinated Debt, net of unamortized issuance costs of LIBOR Transition and Phase–Out

Capital Requirements

Capital Requirements	9 Months Ended
Capital Requirements	Sep. 30, 2021
Capital Requirements
Capital Requirements	12) 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 September 30, 2021, 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 September 30, 2021. 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 through the end of 2021, after which the effects will be phased-in over a three-year period from January 1, 2022 through December 31, 2024, with 75% recognized in 2022, 50% recognized in 2023, and 25% recognized in 2024. Under the interim final rule, the amount of adjustments to regulatory capital deferred until the phase-in period includes 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 September 30, 2021 and December 31, 2020, 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 September 30, 2021 and December 31, 2020. Required For Capital Adequacy Purposes Actual Under Basel III Amount Ratio Amount Ratio (1) (Dollars in thousands) As of September 30, 2021 Total Capital $ 498,940 15.1 % $ 346,493 10.5 % (to risk-weighted assets) Tier 1 Capital $ 425,834 12.9 % $ 280,495 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 425,834 12.9 % $ 230,996 7.0 % (to risk-weighted assets) Tier 1 Capital $ 425,834 8.6 % $ 197,900 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, 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) (2) Includes 2.5% capital conservation buffer, except the Tier 1 Capital to average assets ratio. HBC’s actual capital amounts and ratios are presented in the following table, together with capital adequacy requirements, under the Basel III regulatory requirements as of September 30, 2021, and December 31, 2020. 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 September 30, 2021 Total Capital $ 477,175 14.5 % $ 329,773 10.0 % $ 346,262 10.5 % (to risk-weighted assets) Tier 1 Capital $ 443,947 13.5 % $ 263,818 8.0 % $ 280,307 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 443,947 13.5 % $ 214,352 6.5 % $ 230,841 7.0 % (to risk-weighted assets) Tier 1 Capital $ 443,947 9.0 % $ 247,264 5.0 % $ 197,812 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. The Subordinated Debt, net of unamortized issuance costs, totaled $39,878,000 at September 30, 2021, 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 Financial Protection and Innovation (“DFPI”) 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 DFPI 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 September 30, 2021, HBC would not be required to obtain regulatory approval, and the amount available for cash dividends is $27,173,000. 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 $8,000,000, during the third, second and first quarters of 2021, for a total of $24,000,000.

Commitments and Loss Contingenc

Commitments and Loss Contingencies	9 Months Ended
Commitments and Loss Contingencies	Sep. 30, 2021
Commitments and Loss Contingencies
Commitments and Loss Contingencies	13) Commitments and Loss 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. A summary of proceedings outstanding at September 30, 2021 follows: ● In January and February 2019, Double Jump, Inc. and a number of its affiliates (collectively, the “DC Solar Debtors”) each commenced bankruptcy cases in the United States Bankruptcy Court of Nevada. The chapter 7 trustee of the DC Solar Debtors had indicated that it may bring an adversary action against Heritage related to our former deposit relationships with the DC Solar Debtors and their sponsored investment funds. The Bank entered into a settlement agreement, dated July 7, 2021 with the trustee. The Bank settled all claims of the trustee against the Bank, its affiliates, past and current employees, including all direct and derivative claims arising out of the Bank’s allegedly negligent handling, supervision and management of depository accounts that were maintained for the DC Solar Debtors and related investment funds. The Bank has denied all liability. The Bank received a full and complete release of the trustee’s claims. The Bank considers the settlement to be an insured event subject to reimbursement by liability insurance. The Bank reserved $4,000,000 toward the settlement amount in the second quarter of 2021, and the full settlement payment was made on October 26, 2021. The Bank is pursuing reimbursement from an insurance carrier. All legal fees incurred in connection with the trustee action and the settlement agreement have been expensed to date. ● 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. We intend to vigorously defend these actions. These actions are in the pleading stages. ● In November 2020, a former and a then-current bank employee purporting to represent a class of Bank employees, 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 by 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. Because the class/PAGA action alleges wage and hour claims, it is not covered by the Bank’s insurance. In late December 2020 the same former and then-current bank employees filed a lawsuit asserting, as individual employees, causes of action against the Bank for gender discrimination, retaliation, constructive discharge of the former employee, and sexual harassment, among other claims. Plaintiffs allege denial of promotional opportunities, and harassment and discrimination by Bank employees and customers of the Bank. The December 2020 lawsuit was tentatively settled in October 2021, and the parties are finalizing a definitive settlement agreement. A portion of the settlement will be covered by the Bank’s insurance. 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 a third claimant, who was also a 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 requests that are the subject of the lawsuit filed in November 2020, and disclosed no new claims. The third employee/claimant has not been added to the previously filed class/PAGA action. In October 2021 the third employee/claimant filed a lawsuit alleging race, color, gender, and sex discrimination; disability discrimination; discrimination against an employee making a CFRA claim, violation of the Equal Pay Act, retaliation, and related claims. We intend to vigorously defend the filed class and PAGA complaint, and the action filed by the third employee/claimant. 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 $1,201,012,000 at September 30, 2021, and $1,114,193,000 at December 31, 2020. Unused commitments represented 42% outstanding gross loans at September 30, 2021, 44% at September 30, 2020, and 42% at December 31, 2020. 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: September 30, 2021 December 31, 2020 Fixed Variable Fixed Variable Rate Rate Total Rate Rate Total (Dollars in thousands) Unused lines of credit and commitments to make loans $ 121,481 $ 1,061,659 $ 1,183,140 $ 121,560 $ 970,614 $ 1,092,174 Standby letters of credit 3,127 14,745 17,872 3,049 18,970 22,019 $ 124,608 $ 1,076,404 $ 1,201,012 $ 124,609 $ 989,584 $ 1,114,193 For the nine months ended September 30, 2021, there was a decrease of $77,000 to the allowance for credit losses on the Company’s off-balance sheet credit exposures. The decrease in the allowance for credit losses for off-balance sheet credit exposures in the first nine months of 2021 was driven by lower loss factors as a result of improving economic outlook. The allowance for credit losses on the Company’s off-balance sheet credit exposures was $1,001,000 at September 30, 2021 and $1,078,000 at December 31, 2020.

Revenue Recognition

Revenue Recognition	9 Months Ended
Revenue Recognition	Sep. 30, 2021
Revenue Recognition
Revenue Recognition	14) Revenue Recognition On January 1, 2018, the Company adopted ASU No. 2014-09 (Topic 606) change significantly upon adoption of Topic 606. Substantially all of the Company’s revenue is generated from contracts with customers. The following noninterest income revenue streams are in-scope of 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: Three Months Ended September 30, 2021 2020 (Dollars in thousands) Noninterest Income In-scope of Topic 606: Service charges and fees on deposit accounts $ 584 $ 632 Gain on the disposition of foreclosed assets — — Total noninterest income in-scope of Topic 606 584 632 Noninterest Income Out-of-scope of Topic 606 1,824 1,963 Total noninterest income $ 2,408 $ 2,595 Nine Months Ended September 30, 2021 2020 (Dollars in thousands) Noninterest Income In-scope of Topic 606: Service charges and fees on deposit accounts $ 1,844 $ 2,251 Gain on the disposition of foreclosed assets — 791 Total noninterest income in-scope of Topic 606 1,844 3,042 Noninterest Income Out-of-scope of Topic 606 5,034 4,824 Total noninterest income $ 6,878 $ 7,866

Noninterest Expense

Noninterest Expense	9 Months Ended
Noninterest Expense	Sep. 30, 2021
Noninterest Expense
Noninterest Expense	15) Noninterest Expense The following table sets forth the various components of the Company’s noninterest expense for the periods indicated: Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 (Dollars in thousands) Salaries and employee benefits $ 12,461 $ 11,967 $ 38,991 $ 38,470 Occupancy and equipment 2,151 2,283 6,672 5,821 Professional fees 1,211 1,352 4,701 3,942 Insurance expense 949 591 2,273 1,625 Amortization of intangible assets 754 965 2,241 2,787 Data processing 507 463 1,624 2,218 Reserve for litigation 500 — 4,500 — Software subscriptions 461 641 1,438 2,276 Client services 424 167 1,076 650 Other 2,413 2,739 7,334 10,165 Total noninterest expense $ 21,831 $ 21,168 $ 70,850 $ 67,954 The following table presents the merger-related costs included in other and salaries and employee benefits by category for the periods indicated: Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 (Dollars in thousands) Salaries and employee benefits $ — $ — $ — $ 356 Other (7) 17 27 2,144 Total merger-related costs $ (7) $ 17 $ 27 $ 2,500

Leases

Leases	9 Months Ended
Leases	Sep. 30, 2021
Leases
Leases	16) Leases 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. The Company's lease agreements include liabilities The following table presents the quantitative information for the Company’s leases for the periods indicated: Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 (Dollars in thousands) Operating Lease Cost (Cost resulting from lease payments) $ 1,621 $ 1,664 $ 4,913 $ 5,166 Operating Lease - Operating Cash Flows (Fixed Payments) $ 1,432 $ 1,463 $ 3,837 $ 4,032 Operating Lease - ROU assets $ 35,707 $ 37,000 $ 35,707 $ 37,000 Operating Lease - Liabilities $ 35,707 $ 37,000 $ 35,707 $ 37,000 Weighted Average Lease Term - Operating Leases 7.59 yrs 8.45 yrs 7.59 yrs 8.45 yrs Weighted Average Discount Rate - Operating Leases 4.48% 4.54% 4.48% 4.54% The following maturity analysis shows the undiscounted cash flows due on the Company’s operating lease liabilities as of September 30, 2021: (Dollars in thousands) 2021 remaining $ 1,567 2022 6,353 2023 5,724 2024 5,341 2025 4,929 Thereafter 19,011 Total undiscounted cash flows 42,925 Discount on cash flows (7,218) Total lease liability $ 35,707

Business Segment Information

Business Segment Information	9 Months Ended
Business Segment Information	Sep. 30, 2021
Business Segment Information
Business Segment Information	17) 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 credit losses on loans 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. Three Months Ended September 30, 2021 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 37,093 $ 2,814 $ 39,907 Intersegment interest allocations 219 (219) — Total interest expense 1,725 — 1,725 Net interest income 35,587 2,595 38,182 Provision for (recapture of) credit losses on loans (588) 74 (514) Net interest income after provision 36,175 2,521 38,696 Noninterest income 2,313 95 2,408 Noninterest expense 20,428 1,403 21,831 Intersegment expense allocations 69 (69) — Income before income taxes 18,129 1,144 19,273 Income tax expense 5,217 338 5,555 Net income $ 12,912 $ 806 $ 13,718 Total assets $ 5,392,948 $ 70,054 $ 5,463,002 Loans, net of deferred fees $ 2,776,114 $ 56,745 $ 2,832,859 Goodwill $ 154,587 $ 13,044 $ 167,631 Three Months Ended September 30, 2020 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 33,820 2,432 $ 36,252 Intersegment interest allocations 184 (184) — Total interest expense 2,087 — 2,087 Net interest income 31,917 2,248 34,165 Provision for credit losses on loans 169 28 197 Net interest income after provision 31,748 2,220 33,968 Noninterest income 2,412 183 2,595 Noninterest expense 19,594 1,574 21,168 Intersegment expense allocations 72 (72) — Income before income taxes 14,638 757 15,395 Income tax expense 3,974 224 4,198 Net income $ 10,664 $ 533 $ 11,197 Total assets $ 4,541,331 $ 65,454 $ 4,606,785 Loans, net of deferred fees $ 2,649,334 $ 47,682 $ 2,697,016 Goodwill $ 154,587 $ 13,044 $ 167,631 (1) Includes the holding company’s results of operations Nine Months Ended September 30, 2021 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 105,064 $ 8,236 $ 113,300 Intersegment interest allocations 632 (632) — Total interest expense 5,284 — 5,284 Net interest income 100,412 7,604 108,016 Provision for (recapture of) credit losses on loans (2,537) 18 (2,519) Net interest income after provision 102,949 7,586 110,535 Noninterest income 6,522 356 6,878 Noninterest expense 66,656 4,194 70,850 Intersegment expense allocations 302 (302) — Income before income taxes 43,117 3,446 46,563 Income tax expense 11,809 1,019 12,828 Net income $ 31,308 $ 2,427 $ 33,735 Total assets $ 5,392,948 $ 70,054 $ 5,463,002 Loans, net of deferred fees $ 2,776,114 $ 56,745 $ 2,832,859 Goodwill $ 154,587 $ 13,044 $ 167,631 Nine Months Ended September 30, 2020 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 106,455 $ 7,871 $ 114,326 Intersegment interest allocations 686 (686) — Total interest expense 6,641 — 6,641 Net interest income 100,500 7,185 107,685 Provision for credit losses on loans 14,150 431 14,581 Net interest income after provision 86,350 6,754 93,104 Noninterest income 7,318 548 7,866 Noninterest expense 63,113 4,841 67,954 Intersegment expense allocations 307 (307) — Income before income taxes 30,862 2,154 33,016 Income tax expense 8,703 637 9,340 Net income $ 22,159 $ 1,517 $ 23,676 Total assets $ 4,541,331 $ 65,454 $ 4,606,785 Loans, net of deferred fees $ 2,649,334 $ 47,682 $ 2,697,016 Goodwill $ 154,587 $ 13,044 $ 167,631 (1) Includes the holding company’s results of operations

Subsequent Events

Subsequent Events	9 Months Ended
Subsequent Events	Sep. 30, 2021
Subsequent Events
Subsequent Events	18) Subsequent Events On October 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 payable on November 23, 2021, to shareholders of record at close of business day on November 9, 2021.

Basis of Presentation (Policies

Basis of Presentation (Policies)	9 Months Ended
Basis of Presentation (Policies)	Sep. 30, 2021
Basis of Presentation
Basis of Presentation	Basis of Presentation The unaudited consolidated financial statements of Heritage Commerce Corp (the “Company” or “HCC”) and its wholly owned subsidiary, Heritage Bank of Commerce (the “Bank” or “HBC”), have been prepared pursuant to the rules and regulations for reporting on Form 10-Q. Accordingly, certain information and notes required by accounting principles generally accepted in the United States of America (“GAAP”) for annual financial statements are not included herein. The interim statements should be read in conjunction with the consolidated financial statements and notes that were included in the Company’s Form 10-K for the year ended December 31, 2020. HBC is a commercial bank serving customers primarily located 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, and provides business-essential working capital factoring financing to various industries throughout the United States. No customer accounts for more than 10% of revenue for HBC or the Company. The Company reports its results for two segments: banking and factoring. The Company’s management uses segment results in its operating and strategic planning. In management’s opinion, all adjustments necessary for a fair presentation of these consolidated financial statements have been included and are of a normal and recurring nature. All intercompany transactions and balances have been eliminated. The preparation of financial statements in conformity with GAAP 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ significantly from these estimates. Material estimates that are particularly susceptible to significant change include the determination of the allowance for credit losses and any impairment of goodwill or intangible assets. It is reasonably possible the Company’s estimate of the allowance for credit losses and evaluation of impairment of goodwill or intangible assets could change as a result of the continued impact of the COVID-19 pandemic on the economy. The resulting change in these estimates could be material to the Company’s consolidated financial statements. The results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results expected for any subsequent period or for the entire year ending December 31, 2021.
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. 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.
Reclassifications	Reclassifications Certain reclassifications of prior year balances have been made to conform to the current year presentation. These reclassifications had no impact on the Company’s consolidated financial position, results of operations or net change in cash and cash equivalents.
Adoption of New Accounting Standards	Adoption of New Accounting Standards In December 2019, the FASB issued Accounting Standards Update No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes to simplify various aspects of the current guidance to promote consistent application of the standard among reporting entities by moving certain exceptions to the general principles. The amendments are effective as of January 1, 2021 and had no material impact on the consolidated financial statements.
Accounting Guidance Issued But Not Yet Adopted	Accounting Guidance Issued But Not Yet Adopted 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.
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. 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. The Company continues to implement its transition plan toward the cessation of LIBOR and the modification of its loans and other financial instruments with attributes that are either directly or indirectly influenced by LIBOR. The Company expects to utilize the LIBOR transition relief allowed under ASU 2020-04, and does not expect such an adoption to have a material impact on its accounting and disclosures. The Company will continue to assess the impact as the reference rate transition occurs over the next two years.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
Earnings Per Share (Tables)	Sep. 30, 2021
Shareholders' Equity and Earnings Per Share
Schedule of reconciliation of factors used in computing basic and diluted earnings per common share	Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 (Dollars in thousands, except per share amounts) Net income $ 13,718 $ 11,197 $ 33,735 $ 23,676 Weighted average common shares outstanding for basic earnings per common share 60,220,717 59,589,243 60,078,953 59,432,178 Dilutive potential common shares 539,472 552,169 556,351 711,585 Shares used in computing diluted earnings per common share 60,760,189 60,141,412 60,635,304 60,143,763 Basic earnings per share $ 0.23 $ 0.19 $ 0.56 $ 0.40 Diluted earnings per share $ 0.23 $ 0.19 $ 0.56 $ 0.39

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income ("AOCI") (Tables)	9 Months Ended
Accumulated Other Comprehensive Income ("AOCI") (Tables)	Sep. 30, 2021
Accumulated Other Comprehensive Income ("AOCI")
Schedule of changes in AOCI by component	Three Months Ended September 30, 2021 and 2020 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 July 1, 2021, net of taxes $ 2,873 $ 243 $ (14,648) $ (11,532) Other comprehensive income (loss) before reclassification, net of taxes (259) — (1) (260) Amounts reclassified from other comprehensive income (loss), net of taxes — (9) 95 86 Net current period other comprehensive income (loss), net of taxes (259) (9) 94 (174) Ending balance September 30, 2021, net of taxes $ 2,614 $ 234 $ (14,554) $ (11,706) Beginning balance July 1, 2020, net of taxes $ 6,112 $ 280 $ (11,572) $ (5,180) Other comprehensive loss before reclassification, net of taxes (1,266) — (130) (1,396) Amounts reclassified from other comprehensive income (loss), net of taxes — (9) 201 192 Net current period other comprehensive income (loss), net of taxes (1,266) (9) 71 (1,204) Ending balance September 30, 2020, net of taxes $ 4,846 $ 271 $ (11,501) $ (6,384) (1) This AOCI component is included in the computation of net periodic benefit cost (see Note 8—Benefit Plans) and includes split-dollar life insurance benefit plan. Nine Months Ended September 30, 2021 and 2020 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, 2021, net of taxes $ 3,929 $ 261 $ (14,907) $ (10,717) Other comprehensive loss before reclassification, net of taxes (1,315) — (3) (1,318) Amounts reclassified from other comprehensive income (loss), net of taxes — (27) 356 329 Net current period other comprehensive income (loss), net of taxes (1,315) (27) 353 (989) Ending balance September 30, 2021, net of taxes $ 2,614 $ 234 $ (14,554) $ (11,706) Beginning balance January 1, 2020, net of taxes $ 1,602 $ 298 $ (11,678) $ (9,778) Other comprehensive income (loss) before reclassification, net of taxes 3,435 — (136) 3,299 Amounts reclassified from other comprehensive income (loss), net of taxes (191) (27) 313 95 Net current period other comprehensive income (loss), net of taxes 3,244 (27) 177 3,394 Ending balance September 30, 2020, net of taxes $ 4,846 $ 271 $ (11,501) $ (6,384) (1) This AOCI component is included in the computation of net periodic benefit cost (see Note 8—Benefit Plans) and includes split-dollar life insurance benefit plan.
Schedule of reclassifications out of AOCI into net income	Amounts Reclassified from AOCI Three Months Ended September 30, Affected Line Item Where Details About AOCI Components 2021 2020 Net Income is Presented (Dollars in thousands) Unrealized gains on available-for-sale securities and I/O strips $ — $ — Gain on sales of securities — — Income tax expense — — Net of tax Amortization of unrealized gain on securities available- for-sale that were reclassified to securities held-to-maturity 13 13 Interest income on taxable securities (4) (4) Income tax expense 9 9 Net of tax Amortization of defined benefit pension plan items (1) Prior transition obligation and actuarial losses (2) 1 15 Prior service cost and actuarial losses (3) (136) (300) (135) (285) Other noninterest expense 40 84 Income tax benefit (95) (201) Net of tax Total reclassification from AOCI for the period $ (86) $ (192) Amounts Reclassified from AOCI Nine Months Ended September 30, Affected Line Item Where Details About AOCI Components 2021 2020 Net Income is Presented (Dollars in thousands) Unrealized gains on available-for-sale securities and I/O strips $ — $ 270 Gain on sales of securities — (79) Income tax expense — 191 Net of tax Amortization of unrealized gain on securities available-for-sale that were reclassified to securities held-to-maturity 39 39 Interest income on taxable securities (12) (12) Income tax expense 27 27 Net of tax Amortization of defined benefit pension plan items (1) Prior transition obligation and actuarial losses (2) 3 45 Prior service cost and actuarial losses (3) (508) (490) (505) (445) Other noninterest expense 149 132 Income tax benefit (356) (313) Net of tax Total reclassification from AOCI for the period $ (329) $ (95) (1) This AOCI component is included in the computation of net periodic benefit cost (see Note 8—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)	9 Months Ended
Securities (Tables)	Sep. 30, 2021
Securities
Schedule of amortized cost and estimated fair value of securities	Gross Gross Allowance Estimated Amortized Unrealized Unrealized for Credit Fair September 30, 2021 Cost Gains (Losses) Losses Value (Dollars in thousands) Securities available-for-sale: Agency mortgage-backed securities $ 112,041 $ 3,955 $ — $ — $ 115,996 U.S. Treasury 4,993 11 — — 5,004 Total $ 117,034 $ 3,966 $ — $ — $ 121,000 Gross Gross Estimated Allowance Amortized Unrecognized Unrecognized Fair for Credit September 30, 2021 Cost Gains (Losses) Value Losses (Dollars in thousands) Securities held-to-maturity: Agency mortgage-backed securities $ 480,333 $ 4,487 $ (3,373) $ 481,447 $ — Municipals - exempt from Federal tax 56,997 989 — 57,986 (45) Total $ 537,330 $ 5,476 $ (3,373) $ 539,433 $ (45) 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)
Schedule of securities with unrealized losses	Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized September 30, 2021 Value (Losses) Value (Losses) Value (Losses) (Dollars in thousands) Securities held-to-maturity: Agency mortgage-backed securities $ 283,966 $ (3,372) $ 237 $ (1) $ 284,203 $ (3,373) Total $ 283,966 $ (3,372) $ 237 $ (1) $ 284,203 $ (3,373) 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)
Schedule of proceeds from sales of securities and the resulting gains and losses	Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 (Dollars in thousands) Proceeds $ — $ — $ — $ 56,598 Gross gains — — — 270 Gross losses — — — —
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 $ 4,993 $ 5,004 Agency mortgage-backed securities 112,041 115,996 Total $ 117,034 $ 121,000 Held-to-maturity Amortized Estimated Cost Fair Value (Dollars in thousands) Due after 3 months through one year $ 537 $ 549 Due after one through five years 10,347 10,548 Due after five through ten years 29,564 30,003 Due after ten years 16,549 16,886 Agency mortgage-backed securities 480,333 481,447 Total $ 537,330 $ 539,433
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, 2021 $ 54 Provision for (recapture of) credit losses (9) Ending balance September 30, 2021 $ 45

Loans and Allowance for Credi_2

Loans and Allowance for Credit Losses on Loans (Tables)	9 Months Ended
Loans and Allowance for Credit Losses on Loans (Tables)	Sep. 30, 2021
Loans and Allowance for Credit Losses on Loans
Schedule of loans	September 30, December 31, 2021 2020 (Dollars in thousands) Loans held-for-investment: Commercial $ 743,450 $ 846,386 Real estate: CRE - owner occupied 580,624 560,362 CRE - non-owner occupied 829,022 693,103 Land and construction 141,277 144,594 Home equity 106,690 111,885 Multifamily 205,952 166,425 Residential mortgages 211,467 85,116 Consumer and other 20,106 18,116 Loans 2,838,588 2,625,987 Deferred loan fees, net (5,729) (6,726) Loans, net of deferred fees 2,832,859 2,619,261 Allowance for credit losses on loans (43,680) (44,400) Loans, net $ 2,789,179 $ 2,574,861
Schedule of changes in allowance for loan (credit) losses	Changes in the allowance for credit losses on loans were as follows for the periods indicated: Three Months Ended September 30, 2021 CRE CRE 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 $ 10,857 $ 8,206 $ 16,485 $ 2,136 $ 1,069 $ 2,950 $ 1,968 $ 285 $ 43,956 Charge-offs (65) — — — — — — — (65) Recoveries 263 4 — — 36 — — — 303 Net recoveries 198 4 — — 36 — — — 238 Provision for (recapture of) credit losses on loans (822) 57 665 (112) (94) (61) (97) (50) (514) End of period balance $ 10,233 $ 8,267 $ 17,150 $ 2,024 $ 1,011 $ 2,889 $ 1,871 $ 235 $ 43,680 Three Months Ended September 30, 2020 CRE CRE 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 $ 13,179 $ 8,547 $ 15,449 $ 2,552 $ 1,851 $ 1,828 $ 825 $ 1,213 $ 45,444 Charge-offs (502) - - - - - - (96) (598) Recoveries 343 - - 19 16 - - 1 379 Net (charge-offs) recoveries (159) - - 19 16 - - (95) (219) Provision for (recapture of) credit losses on loans (220) 736 (124) (27) 14 21 (46) (157) 197 End of period balance $ 12,800 $ 9,283 $ 15,325 $ 2,544 $ 1,881 $ 1,849 $ 779 $ 961 $ 45,422 Nine Months Ended September 30, 2021 CRE CRE 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 $ 11,587 $ 8,560 $ 16,416 $ 2,509 $ 1,297 $ 2,804 $ 943 $ 284 $ 44,400 Charge-offs (433) — — — — — — — (433) Recoveries 1,191 12 — 884 75 — — 70 2,232 Net recoveries 758 12 — 884 75 — — 70 1,799 Provision for (recapture of) credit losses on loans (2,112) (305) 734 (1,369) (361) 85 928 (119) (2,519) End of period balance $ 10,233 $ 8,267 $ 17,150 $ 2,024 $ 1,011 $ 2,889 $ 1,871 $ 235 $ 43,680 Nine Months Ended September 30, 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 (1,637) — — — — — — (99) (1,736) Recoveries 598 1 — 51 70 — — 2 722 Net (charge-offs) recoveries (1,039) 1 — 51 70 — — (97) (1,014) Provision for (recapture of) credit losses on loans 7,049 2,288 3,653 1,035 490 596 101 (631) 14,581 End of period balance $ 12,800 $ 9,283 $ 15,325 $ 2,544 $ 1,881 $ 1,849 $ 779 $ 961 $ 45,422
Schedule of nonperforming loans by class	September 30, 2021 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 $ 89 $ 1,216 $ 157 $ 1,462 Real estate: CRE - Owner Occupied 1,136 — — 1,136 CRE - Non-Owner Occupied — — 485 485 Home equity 94 — — 94 Multifamily 1,149 — — 1,149 Consumer and other 407 — — 407 Total $ 2,875 $ 1,216 $ 642 $ 4,733 December 31, 2020 Restructured Nonaccrual Nonaccrual and Loans with no Specific with no 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
Schedule of aging of past due loans by class of loans	September 30, 2021 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 $ 5,105 $ 1,070 $ 291 $ 6,466 $ 736,984 $ 743,450 Real estate: CRE - Owner Occupied 568 — 1,136 1,704 578,920 580,624 CRE - Non-Owner Occupied — — 485 485 828,537 829,022 Land and construction — — — — 141,277 141,277 Home equity — — — — 106,690 106,690 Multifamily — — — — 205,952 205,952 Residential mortgages — — — — 211,467 211,467 Consumer and other — — 407 407 19,699 20,106 Total $ 5,673 $ 1,070 $ 2,319 $ 9,062 $ 2,829,526 $ 2,838,588 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
Summary of loan portfolio by loan type and credit quality classification	Revolving Loans Term Loans Amortized Cost Basis by Originated Period as of September 30, 2021 Amortized 2016 and Cost 9/30/2021 12/31/2020 12/31/2019 12/31/2018 12/31/2017 Prior Basis Total (Dollars in thousands) Commercial: Pass $ 244,357 $ 77,588 $ 17,048 $ 14,440 $ 8,248 $ 7,666 $ 357,811 $ 727,158 Special Mention 192 528 225 879 518 225 1,245 3,812 Substandard 1,769 3,266 - 31 472 3 5,634 11,175 Substandard-Nonaccrual 713 440 49 - - 103 - 1,305 Total 247,031 81,822 17,322 15,350 9,238 7,997 364,690 743,450 CRE - Owner Occupied: Pass 117,435 143,755 72,641 58,229 36,514 120,856 14,424 563,854 Special Mention - 7,928 676 - - 363 - 8,967 Substandard - 3,150 - 1,879 735 903 - 6,667 Substandard-Nonaccrual - 1,109 - - - 27 - 1,136 Total 117,435 155,942 73,317 60,108 37,249 122,149 14,424 580,624 CRE - Non-Owner Occupied: Pass 271,803 144,254 119,996 50,388 71,693 143,970 3,646 805,750 Special Mention - 8,152 - - 1,741 8,410 18,303 Substandard - 3,099 - 1,385 - 485 - 4,969 Substandard-Nonaccrual - - - - - - - - Total 271,803 155,505 119,996 51,773 73,434 152,865 3,646 829,022 Land and construction: Pass 108,338 20,750 4,427 - - 1,310 5,093 139,918 Special Mention - - - - - - - - Substandard 1,359 - - - - - - 1,359 Substandard-Nonaccrual - - - - - - - - Total 109,697 20,750 4,427 - - 1,310 5,093 141,277 Home equity: Pass - - - 52 - - 103,690 103,742 Special Mention - - - - - - 1,931 1,931 Substandard - - - - - 143 780 923 Substandard-Nonaccrual - 94 - - - - 94 Total - 94 - 52 - 143 106,401 106,690 Multifamily: Pass 75,736 30,474 35,318 16,238 18,798 20,928 - 197,492 Special Mention 5,833 - - - - - 5,833 Substandard 604 874 - - - - - 1,478 Substandard-Nonaccrual 1,149 - - - - - - 1,149 Total 83,322 31,348 35,318 16,238 18,798 20,928 - 205,952 Residential mortgage: Pass 150,146 18,095 8,130 3,113 6,053 24,672 - 210,209 Special Mention - - - - - - - - Substandard - - - - - 1,258 - 1,258 Substandard-Nonaccrual - - - - - - - - Total 150,146 18,095 8,130 3,113 6,053 25,930 - 211,467 Consumer and other: Pass 408 3 48 1,442 16 1,025 16,740 19,682 Special Mention - - - - - - - - Substandard 17 - - - - - 17 Substandard-Nonaccrual - - - 407 - - - 407 Total 425 3 48 1,849 16 1,025 16,740 20,106 Total loans $ 979,859 $ 463,559 $ 258,558 $ 148,483 $ 144,788 $ 332,347 $ 510,994 $ 2,838,588 Risk Grades: Pass $ 968,223 $ 434,919 $ 257,608 $ 143,902 $ 141,322 $ 320,427 $ 501,404 $ 2,767,805 Special Mention 6,025 16,608 901 879 2,259 8,998 3,176 38,846 Substandard 3,749 10,389 - 3,295 1,207 2,792 6,414 27,846 Substandard-Nonaccrual 1,862 1,643 49 407 - 130 - 4,091 Grand Total $ 979,859 $ 463,559 $ 258,558 $ 148,483 $ 144,788 $ 332,347 $ 510,994 $ 2,838,588 Revolving Loans Term Loans Amortized Cost Basis by Originated Period as of December 31, 2020 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
Schedule of amortized cost basis of collateral-dependent loans	The following table presents the amortized cost basis of collateral-dependent loans by loan classification at September 30, 2021: Collateral Type Real Estate Business Property Assets Total (Dollars in thousands) Commercial $ 25 $ 1,191 $ 1,216 Total $ 25 $ 1,191 $ 1,216 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
Schedule of loans by class modified as troubled debt restructurings	During the Three Months Ended September 30, 2021 Pre-modification Post-modification Number Outstanding Outstanding of Recorded Recorded Troubled Debt Restructurings: Contracts Investment Investment (Dollars in thousands) Commercial — $ — $ — Total — $ — $ — During the Three Months Ended September 30, 2020 Pre-modification Post-modification Number Outstanding Outstanding of Recorded Recorded Troubled Debt Restructurings: Contracts Investment Investment (Dollars in thousands) Commercial 7 $ 510 $ 510 Total 7 $ 510 $ 510 During the Nine Months Ended September 30, 2021 Pre-modification Post-modification Number Outstanding Outstanding of Recorded Recorded Troubled Debt Restructurings: Contracts Investment Investment (Dollars in thousands) Commercial 1 $ 3 $ 3 Total 1 $ 3 $ 3 During the Nine Months Ended September 30, 2020 Pre-modification Post-modification Number Outstanding Outstanding of Recorded Recorded Troubled Debt Restructurings: Contracts Investment Investment (Dollars in thousands) Commercial 10 $ 520 $ 520 Total 10 $ 520 $ 520

Goodwill and Other Intangible_2

Goodwill and Other Intangible Assets (Tables)	9 Months Ended
Goodwill and Other Intangible Assets (Tables)	Sep. 30, 2021
Goodwill and Other Intangible Assets
Schedule of carrying amount of goodwill by segment	September 30, December 31, 2021 2020 (Dollars in thousands) Banking $ 154,587 $ 154,587 Factoring 13,044 13,044 Total Goodwill $ 167,631 $ 167,631
Summary of Company's intangible assets	September 30, 2021 Gross Carrying Accumulated Amount Amortization Total (Dollars in thousands) Core deposit intangibles $ 25,023 $ (11,274) $ 13,749 Customer relationship and brokered relationship intangibles 1,900 (1,313) 587 Below market leases 770 (683) 87 Total $ 27,693 $ (13,270) $ 14,423 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
Schedule of estimated amortization expense	Customer & Below/ Core Brokered (Above) Total Deposit Relationship Market Amortization Year Intangible Intangible Lease Expense (Dollars in thousands) 2021 remaining $ 708 $ 48 $ (1) $ 755 2022 2,447 190 (2) 2,635 2023 2,217 190 (2) 2,405 2024 2,023 159 5 2,187 2025 1,795 — 18 1,813 Thereafter 4,559 — 69 4,628 $ 13,749 $ 587 $ 87 $ 14,423

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
Income Taxes (Tables)	Sep. 30, 2021
Income Taxes
Summary of carrying amount of low income tax housing investment	September 30, December 31, 2021 2020 (Dollars in thousands) Low income housing investments $ 4,618 $ 5,246 Future commitments $ 596 $ 596

Benefit Plans (Tables)

Benefit Plans (Tables)	9 Months Ended
Benefit Plans (Tables)	Sep. 30, 2021
Supplemental Retirement Plan
Benefit plans
Schedule of components of net periodic benefit cost	Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 (Dollars in thousands) Components of net periodic benefit cost: Service cost $ 120 $ 123 $ 360 $ 369 Interest cost 190 234 570 701 Amortization of prior service cost — 199 100 199 Amortization of net actuarial loss 136 101 408 291 Net periodic benefit cost $ 446 $ 657 $ 1,438 $ 1,560
Split-Dollar Life Insurance Benefit Plan
Benefit plans
Schedule of change in projected benefit obligation	September 30, December 31, 2021 2020 (Dollars in thousands) Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 9,689 $ 8,198 Interest cost 164 246 Actuarial loss — 1,245 Projected benefit obligation at end of period $ 9,853 $ 9,689
Schedule of amounts recognized in accumulated other comprehensive loss	September 30, December 31, 2021 2020 (Dollars in thousands) Net actuarial loss $ 5,241 $ 5,170 Prior transition obligation 902 970 Accumulated other comprehensive loss $ 6,143 $ 6,140
Schedule of components of net periodic benefit cost	Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 (Dollars in thousands) Amortization of prior transition obligation and actuarial losses $ (1) $ (15) $ (3) $ (45) Interest cost 54 62 164 185 Net periodic benefit cost $ 53 $ 47 $ 161 $ 140

Fair Value (Tables)

Fair Value (Tables)	9 Months Ended
Fair Value (Tables)	Sep. 30, 2021
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 September 30, 2021 Available-for-sale securities: Agency mortgage-backed securities $ 115,996 $ — $ 115,996 $ — U.S. Treasury 5,004 5,004 — — I/O strip receivables 246 — 246 — 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 —
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 $ 1,621,347 $ 1,621,347 $ — $ — $ 1,621,347 Securities available-for-sale 121,000 5,004 115,996 — 121,000 Securities held-to-maturity 537,285 — 539,433 — 539,433 Loans (including loans held-for-sale), net 2,792,857 — 3,678 2,807,219 2,810,897 FHLB stock, FRB stock, and other investments 32,499 — — — N/A Accrued interest receivable 9,868 26 1,749 8,093 9,868 I/O strips receivables 246 — 246 — 246 Liabilities: Time deposits $ 149,180 $ — $ 149,441 $ — $ 149,441 Other deposits 4,577,201 — 4,577,201 — 4,577,201 Subordinated debt 39,878 — 40,478 — 40,478 Accrued interest payable 1,062 — 1,062 — 1,062 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

Equity Plan (Tables)

Equity Plan (Tables)	9 Months Ended
Equity Plan (Tables)	Sep. 30, 2021
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, 2021 2,546,821 $ 9.30 Granted 360,750 $ 12.05 Exercised (195,892) $ 5.47 Forfeited or expired (55,560) $ 12.79 Outstanding at September 30, 2021 2,656,119 $ 9.88 5.57 $ 6,663,854 Vested or expected to vest 2,496,752 5.57 $ 6,264,023 Exercisable at September 30, 2021 1,994,928 4.50 $ 6,146,459
Schedule of information related to the equity Plan	Nine Months Ended September 30, 2021 2020 Intrinsic value of options exercised $ 1,103,925 $ 2,242,512 Cash received from option exercise $ 1,069,391 $ 1,707,587 Tax benefit (expense) realized from option exercises $ 58,208 $ 58,575 Weighted average fair value of options granted $ 2.32 $ 1.15
Schedule of assumptions used to estimate the fair value of each option grant on the date of grant	Nine Months Ended September 30, 2021 2020 Expected life in months(1) 72 72 Volatility(1) 33 % 29 % Weighted average risk-free interest rate(2) 1.09 % 0.53 % Expected dividends(3) 4.32 % 5.71 % (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, 2021 298,700 $ 10.83 Granted 187,325 $ 12.01 Vested (153,101) $ 11.42 Forfeited or expired (34,358) $ 10.23 Nonvested shares at September 30, 2021 298,566 $ 11.03

Capital Requirements (Tables)

Capital Requirements (Tables)	9 Months Ended
Capital Requirements (Tables)	Sep. 30, 2021
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 September 30, 2021 Total Capital $ 498,940 15.1 % $ 346,493 10.5 % (to risk-weighted assets) Tier 1 Capital $ 425,834 12.9 % $ 280,495 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 425,834 12.9 % $ 230,996 7.0 % (to risk-weighted assets) Tier 1 Capital $ 425,834 8.6 % $ 197,900 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, 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) (2) 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 September 30, 2021 Total Capital $ 477,175 14.5 % $ 329,773 10.0 % $ 346,262 10.5 % (to risk-weighted assets) Tier 1 Capital $ 443,947 13.5 % $ 263,818 8.0 % $ 280,307 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 443,947 13.5 % $ 214,352 6.5 % $ 230,841 7.0 % (to risk-weighted assets) Tier 1 Capital $ 443,947 9.0 % $ 247,264 5.0 % $ 197,812 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.

Commitments and Loss Continge_2

Commitments and Loss Contingencies (Tables)	9 Months Ended
Commitments and Loss Contingencies (Tables)	Sep. 30, 2021
Commitments and Loss Contingencies
Schedule of commitments to extend credit	September 30, 2021 December 31, 2020 Fixed Variable Fixed Variable Rate Rate Total Rate Rate Total (Dollars in thousands) Unused lines of credit and commitments to make loans $ 121,481 $ 1,061,659 $ 1,183,140 $ 121,560 $ 970,614 $ 1,092,174 Standby letters of credit 3,127 14,745 17,872 3,049 18,970 22,019 $ 124,608 $ 1,076,404 $ 1,201,012 $ 124,609 $ 989,584 $ 1,114,193

Revenue Recognition (Tables)

Revenue Recognition (Tables)	9 Months Ended
Revenue Recognition (Tables)	Sep. 30, 2021
Revenue Recognition
Schedule of noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606	Three Months Ended September 30, 2021 2020 (Dollars in thousands) Noninterest Income In-scope of Topic 606: Service charges and fees on deposit accounts $ 584 $ 632 Gain on the disposition of foreclosed assets — — Total noninterest income in-scope of Topic 606 584 632 Noninterest Income Out-of-scope of Topic 606 1,824 1,963 Total noninterest income $ 2,408 $ 2,595 Nine Months Ended September 30, 2021 2020 (Dollars in thousands) Noninterest Income In-scope of Topic 606: Service charges and fees on deposit accounts $ 1,844 $ 2,251 Gain on the disposition of foreclosed assets — 791 Total noninterest income in-scope of Topic 606 1,844 3,042 Noninterest Income Out-of-scope of Topic 606 5,034 4,824 Total noninterest income $ 6,878 $ 7,866

Noninterest Expense (Tables)

Noninterest Expense (Tables)	9 Months Ended
Noninterest Expense (Tables)	Sep. 30, 2021
Noninterest Expense
Schedule of noninterest expense	Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 (Dollars in thousands) Salaries and employee benefits $ 12,461 $ 11,967 $ 38,991 $ 38,470 Occupancy and equipment 2,151 2,283 6,672 5,821 Professional fees 1,211 1,352 4,701 3,942 Insurance expense 949 591 2,273 1,625 Amortization of intangible assets 754 965 2,241 2,787 Data processing 507 463 1,624 2,218 Reserve for litigation 500 — 4,500 — Software subscriptions 461 641 1,438 2,276 Client services 424 167 1,076 650 Other 2,413 2,739 7,334 10,165 Total noninterest expense $ 21,831 $ 21,168 $ 70,850 $ 67,954 The following table presents the merger-related costs included in other and salaries and employee benefits by category for the periods indicated: Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 (Dollars in thousands) Salaries and employee benefits $ — $ — $ — $ 356 Other (7) 17 27 2,144 Total merger-related costs $ (7) $ 17 $ 27 $ 2,500

Leases (Tables)

Leases (Tables)	9 Months Ended
Leases (Tables)	Sep. 30, 2021
Leases
Schedule of leases	Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 (Dollars in thousands) Operating Lease Cost (Cost resulting from lease payments) $ 1,621 $ 1,664 $ 4,913 $ 5,166 Operating Lease - Operating Cash Flows (Fixed Payments) $ 1,432 $ 1,463 $ 3,837 $ 4,032 Operating Lease - ROU assets $ 35,707 $ 37,000 $ 35,707 $ 37,000 Operating Lease - Liabilities $ 35,707 $ 37,000 $ 35,707 $ 37,000 Weighted Average Lease Term - Operating Leases 7.59 yrs 8.45 yrs 7.59 yrs 8.45 yrs Weighted Average Discount Rate - Operating Leases 4.48% 4.54% 4.48% 4.54%
Schedule of maturity analysis shows the undiscounted cash flows due on the Company's operating lease liabilities	(Dollars in thousands) 2021 remaining $ 1,567 2022 6,353 2023 5,724 2024 5,341 2025 4,929 Thereafter 19,011 Total undiscounted cash flows 42,925 Discount on cash flows (7,218) Total lease liability $ 35,707

Business Segment Information (T

Business Segment Information (Tables)	9 Months Ended
Business Segment Information (Tables)	Sep. 30, 2021
Business Segment Information
Schedule of information by operating segment	Three Months Ended September 30, 2021 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 37,093 $ 2,814 $ 39,907 Intersegment interest allocations 219 (219) — Total interest expense 1,725 — 1,725 Net interest income 35,587 2,595 38,182 Provision for (recapture of) credit losses on loans (588) 74 (514) Net interest income after provision 36,175 2,521 38,696 Noninterest income 2,313 95 2,408 Noninterest expense 20,428 1,403 21,831 Intersegment expense allocations 69 (69) — Income before income taxes 18,129 1,144 19,273 Income tax expense 5,217 338 5,555 Net income $ 12,912 $ 806 $ 13,718 Total assets $ 5,392,948 $ 70,054 $ 5,463,002 Loans, net of deferred fees $ 2,776,114 $ 56,745 $ 2,832,859 Goodwill $ 154,587 $ 13,044 $ 167,631 Three Months Ended September 30, 2020 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 33,820 2,432 $ 36,252 Intersegment interest allocations 184 (184) — Total interest expense 2,087 — 2,087 Net interest income 31,917 2,248 34,165 Provision for credit losses on loans 169 28 197 Net interest income after provision 31,748 2,220 33,968 Noninterest income 2,412 183 2,595 Noninterest expense 19,594 1,574 21,168 Intersegment expense allocations 72 (72) — Income before income taxes 14,638 757 15,395 Income tax expense 3,974 224 4,198 Net income $ 10,664 $ 533 $ 11,197 Total assets $ 4,541,331 $ 65,454 $ 4,606,785 Loans, net of deferred fees $ 2,649,334 $ 47,682 $ 2,697,016 Goodwill $ 154,587 $ 13,044 $ 167,631 (1) Includes the holding company’s results of operations Nine Months Ended September 30, 2021 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 105,064 $ 8,236 $ 113,300 Intersegment interest allocations 632 (632) — Total interest expense 5,284 — 5,284 Net interest income 100,412 7,604 108,016 Provision for (recapture of) credit losses on loans (2,537) 18 (2,519) Net interest income after provision 102,949 7,586 110,535 Noninterest income 6,522 356 6,878 Noninterest expense 66,656 4,194 70,850 Intersegment expense allocations 302 (302) — Income before income taxes 43,117 3,446 46,563 Income tax expense 11,809 1,019 12,828 Net income $ 31,308 $ 2,427 $ 33,735 Total assets $ 5,392,948 $ 70,054 $ 5,463,002 Loans, net of deferred fees $ 2,776,114 $ 56,745 $ 2,832,859 Goodwill $ 154,587 $ 13,044 $ 167,631 Nine Months Ended September 30, 2020 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 106,455 $ 7,871 $ 114,326 Intersegment interest allocations 686 (686) — Total interest expense 6,641 — 6,641 Net interest income 100,500 7,185 107,685 Provision for credit losses on loans 14,150 431 14,581 Net interest income after provision 86,350 6,754 93,104 Noninterest income 7,318 548 7,866 Noninterest expense 63,113 4,841 67,954 Intersegment expense allocations 307 (307) — Income before income taxes 30,862 2,154 33,016 Income tax expense 8,703 637 9,340 Net income $ 22,159 $ 1,517 $ 23,676 Total assets $ 4,541,331 $ 65,454 $ 4,606,785 Loans, net of deferred fees $ 2,649,334 $ 47,682 $ 2,697,016 Goodwill $ 154,587 $ 13,044 $ 167,631 (1) Includes the holding company’s results of operations

Basis of Presentation - Segment

Basis of Presentation - Segment Reporting (Details)	9 Months Ended
Basis of Presentation - Segment Reporting (Details)	Sep. 30, 2021segmentUSD ($)
Segment Reporting
Number of customers accounting for more than 10 percent of revenue for HBC or the Company \| $	0
Number of Operating Segments \| segment	2

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2021	Sep. 30, 2020
Reconciliation of factors used in computing basic and diluted earnings per common share
Net income	$ 13,718	$ 8,813	$ 11,204	$ 11,197	$ 10,618	$ 1,861	$ 33,735	$ 23,676
Weighted average common shares outstanding for basic earnings per common share (in shares)	60,220,717			59,589,243			60,078,953	59,432,178
Dilutive potential common shares	539,472			552,169			556,351	711,585
Shares used in computing diluted earnings per common share (in shares)	60,760,189			60,141,412			60,635,304	60,143,763
Basic earnings per share (in dollars per share)	$ 0.23			$ 0.19			$ 0.56	$ 0.40
Diluted earnings per share (in dollars per share)	$ 0.23			$ 0.19			$ 0.56	$ 0.39
Number of shares not in computing diluted earnings per common share	1,056,216			1,741,568			1,066,216	1,507,437

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (''AOCI'') - Changes in AOCI by Component (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2021	Sep. 30, 2020
Changes in AOCI by Component
Balance at the beginning of the period, net of taxes			$ (10,717)				$ (10,717)
Net current period other comprehensive income (loss), net of taxes	$ (174)	$ (264)	(551)	$ (1,204)	$ (471)	$ 5,069	(989)	$ 3,394
Balance at the end of the period, net of taxes	(11,706)						(11,706)
Accumulated Other Comprehensive Loss
Changes in AOCI by Component
Balance at the beginning of the period, net of taxes	(11,532)		(10,717)	(5,180)		(9,778)	(10,717)	(9,778)
Other comprehensive income (loss) before reclassification, net of taxes	(260)			(1,396)			(1,318)	3,299
Amounts reclassified from other comprehensive income (loss), net of taxes	86			192			329	95
Net current period other comprehensive income (loss), net of taxes	(174)	(264)	(551)	(1,204)	(471)	5,069	(989)	3,394
Balance at the end of the period, net of taxes	(11,706)	(11,532)		(6,384)	(5,180)		(11,706)	(6,384)
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	2,873		3,929	6,112		1,602	3,929	1,602
Other comprehensive income (loss) before reclassification, net of taxes	(259)			(1,266)			(1,315)	3,435
Amounts reclassified from other comprehensive income (loss), net of taxes								(191)
Net current period other comprehensive income (loss), net of taxes	(259)			(1,266)			(1,315)	3,244
Balance at the end of the period, net of taxes	2,614	2,873		4,846	6,112		2,614	4,846
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	243		261	280		298	261	298
Amounts reclassified from other comprehensive income (loss), net of taxes	(9)			(9)			(27)	(27)
Net current period other comprehensive income (loss), net of taxes	(9)			(9)			(27)	(27)
Balance at the end of the period, net of taxes	234	243		271	280		234	271
Defined Benefit Pension Plan Items
Changes in AOCI by Component
Balance at the beginning of the period, net of taxes	(14,648)		$ (14,907)	(11,572)		$ (11,678)	(14,907)	(11,678)
Other comprehensive income (loss) before reclassification, net of taxes	(1)			(130)			(3)	(136)
Amounts reclassified from other comprehensive income (loss), net of taxes	95			201			356	313
Net current period other comprehensive income (loss), net of taxes	94			71			353	177
Balance at the end of the period, net of taxes	$ (14,554)	$ (14,648)		$ (11,501)	$ (11,572)		$ (14,554)	$ (11,501)

Accumulated Other Comprehensi_4

Accumulated Other Comprehensive Income (''AOCI'') - Amount Reclassified from AOCI (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2021	Sep. 30, 2020
Amount Reclassified from AOCI
Gain on sales of securities								$ 270
Interest income on taxable securities	$ 2,320			$ 2,481			$ 5,992	9,584
Income tax expense	(5,555)			(4,198)			(12,828)	(9,340)
Net income	13,718	$ 8,813	$ 11,204	11,197	$ 10,618	$ 1,861	33,735	23,676
Unrealized Gains (Losses) on Available-for-Sale Securities and I/O Strips
Amount Reclassified from AOCI
Net of tax								191
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								270
Income tax expense								(79)
Net income								191
Unamortized Unrealized Gain on Available-for-Sale Securities Reclassified to Held-to-Maturity
Amount Reclassified from AOCI
Net of tax	9			9			27	27
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	13			13			39	39
Income tax expense	(4)			(4)			(12)	(12)
Net income	9			9			27	27
Defined Benefit Pension Plan Items
Amount Reclassified from AOCI
Net of tax	(95)			(201)			(356)	(313)
Defined Benefit Pension Plan Items \| Amount Reclassified from AOCI
Amount Reclassified from AOCI
Other noninterest expense	(135)			(285)			(505)	(445)
Income tax benefit	40			84			149	132
Net of tax	(95)			(201)			(356)	(313)
Prior transition obligation \| Amount Reclassified from AOCI
Amount Reclassified from AOCI
Other noninterest expense	1			15			3	45
Prior service cost \| Amount Reclassified from AOCI
Amount Reclassified from AOCI
Other noninterest expense	(136)			(300)			(508)	(490)
Accumulated Other Comprehensive Loss
Amount Reclassified from AOCI
Net of tax	(86)			(192)			(329)	(95)
Accumulated Other Comprehensive Loss \| Amount Reclassified from AOCI
Amount Reclassified from AOCI
Net of tax	$ (86)			$ (192)			$ (329)	$ (95)

Securities - Amortized Cost and

Securities - Amortized Cost and Estimated Fair Value of Securities - Securities Available-for-sale (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Securities available-for-sale:
Amortized Cost	$ 117,034	$ 230,012
Gross Unrealized Gains	3,966	5,762
Estimated Fair Value	121,000	235,774
Agency mortgage-backed securities
Securities available-for-sale:
Amortized Cost	112,041	170,215
Gross Unrealized Gains	3,955	5,111
Estimated Fair Value	115,996	175,326
U.S. Treasury
Securities available-for-sale:
Amortized Cost	4,993	59,797
Gross Unrealized Gains	11	651
Estimated Fair Value	$ 5,004	$ 60,448

Securities - Amortized Cost a_2

Securities - Amortized Cost and Estimated Fair Value of Securities - Securities Held-to-maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Securities held-to-maturity:
Amortized Cost	$ 537,330	$ 297,443
Gross Unrealized Gains	5,476	7,714
Gross Unrealized (Losses)	(3,373)	(230)
Estimated Fair Value	539,433	304,927
Allowance for credit losses	(45)	(54)
Agency mortgage-backed securities
Securities held-to-maturity:
Amortized Cost	480,333	228,652
Gross Unrealized Gains	4,487	6,075
Gross Unrealized (Losses)	(3,373)	(230)
Estimated Fair Value	481,447	234,497
Municipals - exempt from Federal tax
Securities held-to-maturity:
Amortized Cost	56,997	68,791
Gross Unrealized Gains	989	1,639
Estimated Fair Value	57,986	70,430
Allowance for credit losses	$ (45)	$ (54)

Securities - Securities with Un

Securities - Securities with Unrealized Losses - Securities Held-to-maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Held-to-maturity, Fair Value
Less Than 12 Months	$ 283,966	$ 30,930
12 Months or More	237
Total	284,203	30,930
Held-to-maturity, Unrealized (Losses)
Less Than 12 Months	(3,372)	(230)
12 Months or More	(1)
Total	(3,373)	(230)
Agency mortgage-backed securities
Held-to-maturity, Fair Value
Less Than 12 Months	283,966	30,930
12 Months or More	237
Total	284,203	30,930
Held-to-maturity, Unrealized (Losses)
Less Than 12 Months	(3,372)	(230)
12 Months or More	(1)
Total	$ (3,373)	$ (230)

Securities - Additional Informa

Securities - Additional Information (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2021USD ($)itemsecurity	Dec. 31, 2020USD ($)
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	405
Number of available for sale securities held \| item	105
Number of held to maturity securities held \| item	300
Number of securities with fair values below amortized cost \| item	40
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	$ 283,966	$ 30,930
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	237
Less Than 12 Months	(3,372)	(230)
12 Months or More	(1)
Agency mortgage-backed securities
Additional Information
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	283,966	30,930
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	237
Less Than 12 Months	(3,372)	$ (230)
12 Months or More	$ (1)

Securities - Proceeds from Sale

Securities - Proceeds from Sales of Securities and the Resulting Gains and Losses (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2020USD ($)
Proceeds from Sales of Securities and the Resulting Gains and Losses
Proceeds	$ 56,598
Gross gains	$ 270

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	Sep. 30, 2021	Dec. 31, 2020
Available-for-sale, Amortized Cost
Due 3 months or less	$ 4,993
Agency mortgage-backed securities	112,041
Total	117,034	$ 230,012
Available-for-sale, Estimated Fair Value
Due 3 months or less	5,004
Agency mortgage-backed securities	115,996
Total	$ 121,000	$ 235,774

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	Sep. 30, 2021	Dec. 31, 2020
Held-to-maturity, Amortized Cost
Due after 3 months through one year	$ 537
Due after one year through five years	10,347
Due after five years through ten years	29,564
Due after ten years	16,549
Agency mortgage-backed securities	480,333
Total	537,330
Held-to-maturity, Estimated Fair Value
Due after 3 months through one year	549
Due after one year through five years	10,548
Due after five years through ten years	30,003
Due after ten years	16,886
Agency mortgage-backed securities	481,447
Total	$ 539,433	$ 304,927

Securities - Securities Pledged

Securities - Securities Pledged to Secure Public Deposits and for Other Purposes (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
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	$ 42,767	$ 40,238

Securities - Roll-forward by ma

Securities - Roll-forward by major security type (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2021USD ($)
Securities
Debt Securities, Held-to-maturity, Allowance for Credit Loss, Beginning Balance	$ 54
Provision for (recapture of) credit losses	(9)
Debt Securities, Held-to-maturity, Allowance for Credit Loss, Ending Balance	$ 45

Loans and Allowance for Credi_3

Loans and Allowance for Credit Losses on Loans - Loans Balance (Details) $ in Thousands	3 Months Ended
	Sep. 30, 2021USD ($)loan	Jun. 30, 2021USD ($)loan	Dec. 31, 2020USD ($)	Sep. 30, 2020USD ($)	Jun. 30, 2020USD ($)	Jan. 01, 2020USD ($)	Dec. 31, 2019USD ($)
Loans held-for-investment:
Total loan balance	$ 2,838,588		$ 2,625,987
Deferred loan fees, net	(5,729)		(6,726)
Loans, net of deferred fees	2,832,859		2,619,261	$ 2,697,016
Allowance for credit losses on loans	(43,680)	$ (43,956)	(44,400)	(45,422)	$ (45,444)	$ (31,855)	$ (23,285)
Loans, net	2,789,179		2,574,861
Commercial \| SBA Paycheck Protection Program ("PPP")
Loans held-for-investment:
Allowance for credit losses on loans	0		0
Loans, net	164,506		290,679
Commercial
Loans held-for-investment:
Total loan balance	743,450		846,386
Allowance for credit losses on loans	(10,233)	(10,857)	(11,587)	(12,800)	(13,179)
Commercial \| Commercial
Loans held-for-investment:
Total loan balance	743,450		846,386
Commercial Loans excluding SBA Paycheck Protection Program [Member] \| Commercial
Loans held-for-investment:
Total loan balance	743,450		846,386
CRE
Loans held-for-investment:
Allowance for credit losses on loans				(12,800)		(6,790)	(10,453)
CRE - owner occupied
Loans held-for-investment:
Total loan balance	580,624		560,362
Allowance for credit losses on loans	(8,267)	(8,206)	(8,560)	(9,283)	(8,547)	(6,994)	(3,825)
CRE - owner occupied \| Real estate
Loans held-for-investment:
Total loan balance	580,624		560,362
CRE - non-owner occupied
Loans held-for-investment:
Total loan balance	829,022		693,103
Allowance for credit losses on loans	(17,150)	(16,485)	(16,416)	(15,325)	(15,449)	(11,672)	(3,760)
CRE - non-owner occupied \| Real estate
Loans held-for-investment:
Total loan balance	829,022		693,103
Land and construction
Loans held-for-investment:
Total loan balance	141,277		144,594
Allowance for credit losses on loans	(2,024)	(2,136)	(2,509)	(2,544)	(2,552)	(1,458)	(2,621)
Land and construction \| Real estate
Loans held-for-investment:
Total loan balance	141,277		144,594
Home equity
Loans held-for-investment:
Total loan balance	106,690		111,885
Allowance for credit losses on loans	(1,011)	(1,069)	(1,297)	(1,881)	(1,851)	(1,321)	(2,244)
Home equity \| Real estate
Loans held-for-investment:
Total loan balance	106,690		111,885
Multi-family
Loans held-for-investment:
Total loan balance	205,952		166,425
Allowance for credit losses on loans	(2,889)	(2,950)	(2,804)	(1,849)	(1,828)	(1,253)	(57)
Multi-family \| Real estate
Loans held-for-investment:
Total loan balance	205,952		166,425
Residential mortgages
Loans held-for-investment:
Total loan balance	211,467		85,116
Allowance for credit losses on loans	$ (1,871)	$ (1,968)	(943)	(779)	(825)	(678)	(243)
Number of loan portfolios purchased \| loan	1	2
Value of loan portfolios purchased	$ 41,938	$ 140,030
Average principal balance	$ 974	$ 585
Weighted average yield	2.92%	3.37%
Residential mortgages \| Real estate
Loans held-for-investment:
Total loan balance	$ 211,467		85,116
Consumer and other
Loans held-for-investment:
Total loan balance	20,106		18,116
Allowance for credit losses on loans	(235)	$ (285)	(284)	$ (961)	$ (1,213)	$ (1,689)	(82)
Consumer and other \| Consumer
Loans held-for-investment:
Total loan balance	$ 20,106		$ 18,116
ASU 2016-03 - Topic 326
Loans held-for-investment:
Allowance for credit losses on loans							(8,570)
ASU 2016-03 - Topic 326 \| CRE
Loans held-for-investment:
Allowance for credit losses on loans							3,663
ASU 2016-03 - Topic 326 \| CRE - owner occupied
Loans held-for-investment:
Allowance for credit losses on loans							(3,169)
ASU 2016-03 - Topic 326 \| CRE - non-owner occupied
Loans held-for-investment:
Allowance for credit losses on loans							(7,912)
ASU 2016-03 - Topic 326 \| Land and construction
Loans held-for-investment:
Allowance for credit losses on loans							1,163
ASU 2016-03 - Topic 326 \| Home equity
Loans held-for-investment:
Allowance for credit losses on loans							923
ASU 2016-03 - Topic 326 \| Multi-family
Loans held-for-investment:
Allowance for credit losses on loans							(1,196)
ASU 2016-03 - Topic 326 \| Residential mortgages
Loans held-for-investment:
Allowance for credit losses on loans							(435)
ASU 2016-03 - Topic 326 \| Consumer and other
Loans held-for-investment:
Allowance for credit losses on loans							$ (1,607)

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		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Changes in the Allowance for Loan Losses
Beginning of period balance	$ 43,956	$ 45,444	$ 44,400	$ 23,285
Charge-offs	(65)	(598)	(433)	(1,736)
Recoveries	303	379	2,232	722
Net (charge-offs) recoveries	238	(219)	1,799	(1,014)
Provision for (recapture of) credit losses on loans	(514)	197	(2,519)	14,581
End of period balance	43,680	45,422	43,680	45,422
Decrease in the allowance of credit loss			521
Decrease in reserve for pooled loans			(199)
ASU 2016-03 - Topic 326
Changes in the Allowance for Loan Losses
Beginning of period balance				8,570
Commercial
Changes in the Allowance for Loan Losses
Beginning of period balance	10,857	13,179	11,587
Charge-offs	(65)	(502)	(433)
Recoveries	263	343	1,191
Net (charge-offs) recoveries	198	(159)	758
Provision for (recapture of) credit losses on loans	(822)	(220)	(2,112)
End of period balance	10,233	12,800	10,233	12,800
CRE
Changes in the Allowance for Loan Losses
Beginning of period balance				10,453
Charge-offs				(1,637)
Recoveries				598
Net (charge-offs) recoveries				(1,039)
Provision for (recapture of) credit losses on loans				7,049
End of period balance		12,800		12,800
CRE \| ASU 2016-03 - Topic 326
Changes in the Allowance for Loan Losses
Beginning of period balance				(3,663)
CRE - owner occupied
Changes in the Allowance for Loan Losses
Beginning of period balance	8,206	8,547	8,560	3,825
Recoveries	4		12	1
Net (charge-offs) recoveries	4		12	1
Provision for (recapture of) credit losses on loans	57	736	(305)	2,288
End of period balance	8,267	9,283	8,267	9,283
CRE - owner occupied \| ASU 2016-03 - Topic 326
Changes in the Allowance for Loan Losses
Beginning of period balance				3,169
CRE - non-owner occupied
Changes in the Allowance for Loan Losses
Beginning of period balance	16,485	15,449	16,416	3,760
Provision for (recapture of) credit losses on loans	665	(124)	734	3,653
End of period balance	17,150	15,325	17,150	15,325
CRE - non-owner occupied \| ASU 2016-03 - Topic 326
Changes in the Allowance for Loan Losses
Beginning of period balance				7,912
Land and construction
Changes in the Allowance for Loan Losses
Beginning of period balance	2,136	2,552	2,509	2,621
Recoveries		19	884	51
Net (charge-offs) recoveries		19	884	51
Provision for (recapture of) credit losses on loans	(112)	(27)	(1,369)	1,035
End of period balance	2,024	2,544	2,024	2,544
Land and construction \| ASU 2016-03 - Topic 326
Changes in the Allowance for Loan Losses
Beginning of period balance				(1,163)
Home equity
Changes in the Allowance for Loan Losses
Beginning of period balance	1,069	1,851	1,297	2,244
Recoveries	36	16	75	70
Net (charge-offs) recoveries	36	16	75	70
Provision for (recapture of) credit losses on loans	(94)	14	(361)	490
End of period balance	1,011	1,881	1,011	1,881
Home equity \| ASU 2016-03 - Topic 326
Changes in the Allowance for Loan Losses
Beginning of period balance				(923)
Multi-family
Changes in the Allowance for Loan Losses
Beginning of period balance	2,950	1,828	2,804	57
Provision for (recapture of) credit losses on loans	(61)	21	85	596
End of period balance	2,889	1,849	2,889	1,849
Multi-family \| ASU 2016-03 - Topic 326
Changes in the Allowance for Loan Losses
Beginning of period balance				1,196
Residential mortgages
Changes in the Allowance for Loan Losses
Beginning of period balance	1,968	825	943	243
Provision for (recapture of) credit losses on loans	(97)	(46)	928	101
End of period balance	1,871	779	1,871	779
Residential mortgages \| ASU 2016-03 - Topic 326
Changes in the Allowance for Loan Losses
Beginning of period balance				435
Consumer and other
Changes in the Allowance for Loan Losses
Beginning of period balance	285	1,213	284	82
Charge-offs		(96)		(99)
Recoveries		1	70	2
Net (charge-offs) recoveries		(95)	70	(97)
Provision for (recapture of) credit losses on loans	(50)	(157)	(119)	(631)
End of period balance	$ 235	$ 961	$ 235	961
Consumer and other \| ASU 2016-03 - Topic 326
Changes in the Allowance for Loan Losses
Beginning of period balance				$ 1,607

Loans and Allowance for Credi_5

Loans and Allowance for Credit Losses on Loans - Nonaccrual Status and Loans Past Due Over 90 Days (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Nonperforming Loans by Class
Nonaccrual Financing Receivable, no special allowance	$ 2,875	$ 5,814
Nonaccrual Financing Receivable, with special allowance	1,216	1,974
Loans Over 90 Days Past Due and Still Accruing	642	81
Total	4,733	7,869
Commercial
Nonperforming Loans by Class
Nonaccrual Financing Receivable, no special allowance	89	752
Nonaccrual Financing Receivable, with special allowance	1,216	1,974
Loans Over 90 Days Past Due and Still Accruing	157	81
Total	1,462	2,807
CRE - owner occupied \| Real estate
Nonperforming Loans by Class
Nonaccrual Financing Receivable, no special allowance	1,136	3,706
Total	1,136	3,706
CRE - non-owner occupied \| Real estate
Nonperforming Loans by Class
Loans Over 90 Days Past Due and Still Accruing	485
Total	485
Home equity \| Real estate
Nonperforming Loans by Class
Nonaccrual Financing Receivable, no special allowance	94	949
Total	94	949
Multi-family \| Real estate
Nonperforming Loans by Class
Nonaccrual Financing Receivable, no special allowance	1,149
Total	1,149
Consumer and other \| Consumer
Nonperforming Loans by Class
Nonaccrual Financing Receivable, no special allowance	407	407
Total	$ 407	$ 407

Loans and Allowance for Credi_6

Loans and Allowance for Credit Losses on Loans - Aging of Past Due Loans by Class of Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Aging of Past Due Loans by Class of Loans
Total Past Due	$ 9,062	$ 6,229
Current	2,829,526	2,619,758
Total loan balance	2,838,588	2,625,987
30-59 Days Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	5,673	4,657
60-89 Days Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	1,070	744
90 Days or Greater Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	2,319	828
Commercial
Aging of Past Due Loans by Class of Loans
Total loan balance	743,450	846,386
Commercial \| Commercial
Aging of Past Due Loans by Class of Loans
Total Past Due	6,466	4,175
Current	736,984	842,211
Total loan balance	743,450	846,386
Commercial \| Commercial \| 30-59 Days Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	5,105	3,524
Commercial \| Commercial \| 60-89 Days Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	1,070	259
Commercial \| Commercial \| 90 Days or Greater Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	291	392
CRE - owner occupied
Aging of Past Due Loans by Class of Loans
Total loan balance	580,624	560,362
CRE - owner occupied \| Real estate
Aging of Past Due Loans by Class of Loans
Total Past Due	1,704	1,162
Current	578,920	559,200
Total loan balance	580,624	560,362
CRE - owner occupied \| Real estate \| 30-59 Days Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	568	1,133
CRE - owner occupied \| Real estate \| 90 Days or Greater Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	1,136	29
CRE - non-owner occupied
Aging of Past Due Loans by Class of Loans
Total loan balance	829,022	693,103
CRE - non-owner occupied \| Real estate
Aging of Past Due Loans by Class of Loans
Total Past Due	485	485
Current	828,537	692,618
Total loan balance	829,022	693,103
CRE - non-owner occupied \| Real estate \| 60-89 Days Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due		485
CRE - non-owner occupied \| Real estate \| 90 Days or Greater Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	485
Land and construction
Aging of Past Due Loans by Class of Loans
Total loan balance	141,277	144,594
Land and construction \| Real estate
Aging of Past Due Loans by Class of Loans
Current	141,277	144,594
Total loan balance	141,277	144,594
Home equity
Aging of Past Due Loans by Class of Loans
Total loan balance	106,690	111,885
Home equity \| Real estate
Aging of Past Due Loans by Class of Loans
Current	106,690	111,885
Total loan balance	106,690	111,885
Multi-family
Aging of Past Due Loans by Class of Loans
Total loan balance	205,952	166,425
Multi-family \| Real estate
Aging of Past Due Loans by Class of Loans
Current	205,952	166,425
Total loan balance	205,952	166,425
Residential mortgages
Aging of Past Due Loans by Class of Loans
Total loan balance	211,467	85,116
Residential mortgages \| Real estate
Aging of Past Due Loans by Class of Loans
Current	211,467	85,116
Total loan balance	211,467	85,116
Consumer and other
Aging of Past Due Loans by Class of Loans
Total loan balance	20,106	18,116
Consumer and other \| Consumer
Aging of Past Due Loans by Class of Loans
Total Past Due	407	407
Current	19,699	17,709
Total loan balance	20,106	18,116
Consumer and other \| Consumer \| 90 Days or Greater Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	$ 407	$ 407

Loans and Allowance for Credi_7

Loans and Allowance for Credit Losses on Loans - Aging of Past Due Loans by Class of Loans - Additional Information (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Aging of Past Due Loans by Class of Loans
Past due loans 30 day or greater	$ 9,062	$ 6,229
30 days or greater past due
Aging of Past Due Loans by Class of Loans
Nonaccrual loans	1,732	1,918
Less than 30 days past due
Aging of Past Due Loans by Class of Loans
Nonaccrual loans	$ 2,359
Less than 30 days past due nonaccrual loans held-for-investment		$ 5,870

Loans and Allowance for Credi_8

Loans and Allowance for Credit Losses on Loans - Credit Quality Indicators (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Loans
2021	$ 979,859	$ 979,432
2020	463,559	309,922
2019	258,558	191,961
2018	148,483	202,725
2017	144,788	163,654
2016 and Prior	332,347	326,918
Revolving	510,994	451,375
Total loan balance	2,838,588	2,625,987
Balance to report	2,789,179	2,574,861
Loan classified as loss
Loans
Balance to report	0	0
Commercial
Loans
2021	247,031	453,231
2020	81,822	34,122
2019	17,322	22,510
2018	15,350	15,551
2017	9,238	10,565
2016 and Prior	7,997	8,561
Revolving	364,690	301,846
Total loan balance	743,450	846,386
Commercial \| Pass [Member]
Loans
2021	244,357	431,369
2020	77,588	33,350
2019	17,048	21,154
2018	14,440	13,840
2017	8,248	7,341
2016 and Prior	7,666	8,292
Revolving	357,811	296,286
Total loan balance	727,158	811,632
Commercial \| Special Mention [Member]
Loans
2021	192	15,720
2020	528	716
2019	225	1,301
2018	879	953
2017	518	713
2016 and Prior	225	170
Revolving	1,245	1,937
Total loan balance	3,812	21,510
Commercial \| Substandard [Member]
Loans
2021	1,769	4,036
2020	3,266
2019		19
2018	31	758
2017	472	2,396
2016 and Prior	3	73
Revolving	5,634	3,236
Total loan balance	11,175	10,518
Commercial \| Substandard-Nonaccrual [Member]
Loans
2021	713	2,106
2020	440	56
2019	49	36
2017		115
2016 and Prior	103	26
Revolving		387
Total loan balance	1,305	2,726
CRE - owner occupied
Loans
2021	117,435	177,614
2020	155,942	75,632
2019	73,317	72,596
2018	60,108	55,442
2017	37,249	50,716
2016 and Prior	122,149	112,398
Revolving	14,424	15,964
Total loan balance	580,624	560,362
CRE - owner occupied \| Pass [Member]
Loans
2021	117,435	168,224
2020	143,755	73,064
2019	72,641	68,068
2018	58,229	51,705
2017	36,514	50,716
2016 and Prior	120,856	109,350
Revolving	14,424	15,964
Total loan balance	563,854	537,091
CRE - owner occupied \| Special Mention [Member]
Loans
2021		3,151
2020	7,928	2,568
2019	676	4,128
2018		783
2016 and Prior	363	2,569
Total loan balance	8,967	13,199
CRE - owner occupied \| Substandard [Member]
Loans
2021		2,561
2020	3,150
2019		400
2018	1,879	2,954
2017	735
2016 and Prior	903	451
Total loan balance	6,667	6,366
CRE - owner occupied \| Substandard-Nonaccrual [Member]
Loans
2021		3,678
2020	1,109
2016 and Prior	27	28
Total loan balance	1,136	3,706
CRE - non-owner occupied
Loans
2021	271,803	181,646
2020	155,505	128,361
2019	119,996	72,764
2018	51,773	99,816
2017	73,434	57,907
2016 and Prior	152,865	150,683
Revolving	3,646	1,926
Total loan balance	829,022	693,103
CRE - non-owner occupied \| Pass [Member]
Loans
2021	271,803	166,550
2020	144,254	128,361
2019	119,996	68,796
2018	50,388	99,816
2017	71,693	57,422
2016 and Prior	143,970	150,683
Revolving	3,646	1,926
Total loan balance	805,750	673,554
CRE - non-owner occupied \| Special Mention [Member]
Loans
2021		11,930
2020	8,152
2019		2,557
2017	1,741
2016 and Prior	8,410
Total loan balance	18,303	14,487
CRE - non-owner occupied \| Substandard [Member]
Loans
2021		3,166
2020	3,099
2019		1,411
2018	1,385
2017		485
2016 and Prior	485
Total loan balance	4,969	5,062
Land and construction
Loans
2021	109,697	116,291
2020	20,750	22,054
2019	4,427
2016 and Prior	1,310	1,343
Revolving	5,093	4,906
Total loan balance	141,277	144,594
Land and construction \| Pass [Member]
Loans
2021	108,338	114,932
2020	20,750	22,054
2019	4,427
2016 and Prior	1,310	1,343
Revolving	5,093	4,906
Total loan balance	139,918	143,235
Land and construction \| Substandard [Member]
Loans
2021	1,359	1,359
Total loan balance	1,359	1,359
Home equity
Loans
2021		383
2020	94
2019		74
2018	52
2016 and Prior	143	143
Revolving	106,401	111,285
Total loan balance	106,690	111,885
Home equity \| Pass [Member]
Loans
2021		266
2019		74
2018	52
Revolving	103,690	109,848
Total loan balance	103,742	110,188
Home equity \| Special Mention [Member]
Loans
Revolving	1,931
Total loan balance	1,931
Home equity \| Substandard [Member]
Loans
2016 and Prior	143	143
Revolving	780	605
Total loan balance	923	748
Home equity \| Substandard-Nonaccrual [Member]
Loans
2021		117
2020	94
Revolving		832
Total loan balance	94	949
Multi-family
Loans
2021	83,322	32,370
2020	31,348	39,183
2019	35,318	17,248
2018	16,238	24,572
2017	18,798	16,235
2016 and Prior	20,928	35,937
Revolving		880
Total loan balance	205,952	166,425
Multi-family \| Pass [Member]
Loans
2021	75,736	31,481
2020	30,474	39,183
2019	35,318	17,248
2018	16,238	24,572
2017	18,798	16,235
2016 and Prior	20,928	30,751
Revolving		880
Total loan balance	197,492	160,350
Multi-family \| Special Mention [Member]
Loans
2021	5,833
2016 and Prior		5,186
Total loan balance	5,833	5,186
Multi-family \| Substandard [Member]
Loans
2021	604	889
2020	874
Total loan balance	1,478	889
Multi-family \| Substandard-Nonaccrual [Member]
Loans
2021	1,149
Total loan balance	1,149
Residential mortgages
Loans
2021	150,146	17,887
2020	18,095	10,048
2019	8,130	4,876
2018	3,113	7,324
2017	6,053	28,115
2016 and Prior	25,930	16,866
Total loan balance	211,467	85,116
Residential mortgages \| Pass [Member]
Loans
2021	150,146	12,798
2020	18,095	10,048
2019	8,130	3,246
2018	3,113	7,324
2017	6,053	28,115
2016 and Prior	24,672	15,568
Total loan balance	210,209	77,099
Residential mortgages \| Special Mention [Member]
Loans
2021		5,089
2019		1,630
Total loan balance		6,719
Residential mortgages \| Substandard [Member]
Loans
2016 and Prior	1,258	1,298
Total loan balance	1,258	1,298
Consumer and other
Loans
2021	425	10
2020	3	522
2019	48	1,893
2018	1,849	20
2017	16	116
2016 and Prior	1,025	987
Revolving	16,740	14,568
Total loan balance	20,106	18,116
Consumer and other \| Pass [Member]
Loans
2021	408	10
2020	3	522
2019	48	1,486
2018	1,442	20
2017	16	116
2016 and Prior	1,025	987
Revolving	16,740	14,568
Total loan balance	19,682	17,709
Consumer and other \| Substandard [Member]
Loans
2021	17
Total loan balance	17
Consumer and other \| Substandard-Nonaccrual [Member]
Loans
2019		407
2018	407
Total loan balance	407	407
Risk Grades [Member]
Loans
2021	979,859	979,432
2020	463,559	309,922
2019	258,558	191,961
2018	148,483	202,725
2017	144,788	163,654
2016 and Prior	332,347	326,918
Revolving	510,994	451,375
Total loan balance	2,838,588	2,625,987
Risk Grades [Member] \| Pass [Member]
Loans
2021	968,223	925,630
2020	434,919	306,582
2019	257,608	180,072
2018	143,902	197,277
2017	141,322	159,945
2016 and Prior	320,427	316,974
Revolving	501,404	444,378
Total loan balance	2,767,805	2,530,858
Risk Grades [Member] \| Special Mention [Member]
Loans
2021	6,025	35,890
2020	16,608	3,284
2019	901	9,616
2018	879	1,736
2017	2,259	713
2016 and Prior	8,998	7,925
Revolving	3,176	1,937
Total loan balance	38,846	61,101
Risk Grades [Member] \| Substandard [Member]
Loans
2021	3,749	12,011
2020	10,389
2019		1,830
2018	3,295	3,712
2017	1,207	2,881
2016 and Prior	2,792	1,965
Revolving	6,414	3,841
Total loan balance	27,846	26,240
Risk Grades [Member] \| Substandard-Nonaccrual [Member]
Loans
2021	1,862	5,901
2020	1,643	56
2019	49	443
2018	407
2017		115
2016 and Prior	130	54
Revolving		1,219
Total loan balance	$ 4,091	$ 7,788

Loans and Allowance for Credi_9

Loans and Allowance for Credit Losses on Loans - Amortized Cost Basis of Collateral-dependent Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Financing Receivable, Recorded Investment, Past Due [Line Items]
Collateral dependent loans	$ 1,216	$ 1,974
Real Estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Collateral dependent loans	25	29
Business Assets
Financing Receivable, Recorded Investment, Past Due [Line Items]
Collateral dependent loans	1,191	1,815
Unsecured
Financing Receivable, Recorded Investment, Past Due [Line Items]
Collateral dependent loans		130
Commercial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Collateral dependent loans	1,216	1,974
Commercial \| Real Estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Collateral dependent loans	25	29
Commercial \| Business Assets
Financing Receivable, Recorded Investment, Past Due [Line Items]
Collateral dependent loans	$ 1,191	1,815
Commercial \| Unsecured
Financing Receivable, Recorded Investment, Past Due [Line Items]
Collateral dependent loans		$ 130

Loans and Allowance for Cred_10

Loans and Allowance for Credit Losses on Loans - Troubled Debt Restructurings (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Loans and Allowance for Credit Losses on Loans
Recorded investment of troubled debt restructurings	$ 499	$ 674
Troubled debt restructurings, nonaccrual loans	408	468
Troubled debt restructurings, accruing loans	91	206
Specific reserves	$ 341	$ 352

Loans and Allowance for Cred_11

Loans and Allowance for Credit Losses on Loans - Troubled Debt Restructurings by Class (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021loan	Sep. 30, 2020USD ($)loan	Sep. 30, 2021USD ($)loan	Sep. 30, 2020USD ($)loan
Troubled Debt Restructurings by Class
Number of loans modified as troubled debt restructurings during the period	0	7	1	10
Pre-modification Outstanding Recorded Investment		$ 510	$ 3	$ 520
Post-modification Outstanding Recorded Investment		$ 510	$ 3	$ 520
Commercial
Troubled Debt Restructurings by Class
Number of loans modified as troubled debt restructurings during the period		7	1	10
Pre-modification Outstanding Recorded Investment		$ 510	$ 3	$ 520
Post-modification Outstanding Recorded Investment		$ 510	$ 3	$ 520

Loans and Allowance for Cred_12

Loans and Allowance for Credit Losses on Loans - Defaults on Troubled Debt Restructurings (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2021itemloan	Sep. 30, 2020item	Sep. 30, 2021loan
Loans and Allowance for Credit Losses on Loans
Number of troubled debt restructurings in which the amount of principal or accrued interest owed from the borrower was forgiven \| loan	0		0
Default period contractually past due under modified terms (in days)			30 days
Number of defaults on troubled debt restructurings \| item	0	0
Period of consecutive payments (in months)			6 months

Loans and Allowance for Cred_13

Loans and Allowance for Credit Losses on Loans - Schedule of loan deferrals by loan category (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2021USD ($)loanitem	Dec. 31, 2020USD ($)
Loans, net \| $	$ 2,789,179	$ 2,574,861
Number of remaining second deferments \| item	4
2nd Deferments
Number of unsecured second deferments	1
2nd Deferments \| Collateral Pledged
Loans, net \| $	$ 1,372
2nd Deferments \| Real Estate
Number of remaining second deferments	1
2nd Deferments \| Business Assets
Number of remaining second deferments	2

Goodwill and Other Intangible_3

Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2020
Goodwill
Goodwill	$ 167,631	$ 167,631	$ 167,631
BVF/CSNK
Goodwill
Goodwill acquired	13,044
Focus
Goodwill
Goodwill acquired	32,619
Tri Valley Bank
Goodwill
Goodwill acquired	13,819
United American Bank
Goodwill
Goodwill acquired	24,271
Presidio bank
Goodwill
Goodwill acquired	83,878
Banking
Goodwill
Goodwill	154,587	154,587	154,587
Factoring
Goodwill
Goodwill	$ 13,044	$ 13,044	$ 13,044

Goodwill and Other Intangible_4

Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Other Intangible Assets
Gross Carrying amount	$ 27,693	$ 27,693
Accumulated Amortization	(13,270)	(11,029)
Total	14,423	16,664
Core deposit
Other Intangible Assets
Gross Carrying amount	25,023	25,023
Accumulated Amortization	(11,274)	(9,153)
Total	13,749	15,870
Below/ (Above) market-value lease
Other Intangible Assets
Total	87
Below market-value lease
Other Intangible Assets
Gross Carrying amount	770	770
Accumulated Amortization	(683)	(705)
Total	87	65
Customer relationship and brokered relationship
Other Intangible Assets
Gross Carrying amount	1,900	1,900
Accumulated Amortization	(1,313)	(1,171)
Total	$ 587	$ 729

Goodwill and Other Intangible_5

Goodwill and Other Intangible Assets - Estimated Amortization Expense (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Estimated Amortization Expense
2021 remaining	$ 755
2022	2,635
2023	2,405
2024	2,187
2025	1,813
Thereafter	4,628
Total	14,423	$ 16,664
Core deposit
Estimated Amortization Expense
2021 remaining	708
2022	2,447
2023	2,217
2024	2,023
2025	1,795
Thereafter	4,559
Total	13,749	15,870
Customer relationship and brokered relationship
Estimated Amortization Expense
2021 remaining	48
2022	190
2023	190
2024	159
Total	587	$ 729
Below/ (Above) market-value lease
Estimated Amortization Expense
2021 remaining	(1)
2022	(2)
2023	(2)
2024	5
2025	18
Thereafter	69
Total	$ 87

Goodwill and Other Intangible_6

Goodwill and Other Intangible Assets - Impairment of Intangible Assets (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Impairment of Intangible Assets
Impairment of intangible assets	$ 0	$ 0

Income Taxes - Net Deferred Tax

Income Taxes - Net Deferred Tax Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Net deferred tax assets
Net deferred tax assets	$ 25,314	$ 28,221
Deferred Tax Assets, Valuation Allowance	$ 0	$ 0

Income Taxes - Carry Amounts of

Income Taxes - Carry Amounts of the Low Income Housing Investments (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Income Taxes
Low income housing investments	$ 4,618	$ 5,246
Future commitments	$ 596	$ 596

Income Taxes - Future Commitmen

Income Taxes - Future Commitments of the Low Income Housing Investments (Details) - Low income housing investments $ in Thousands	Sep. 30, 2021USD ($)
Future Commitments
2021	$ 46
2022 through 2025	$ 550

Income Taxes - Components of Lo

Income Taxes - Components of Low Income Housing Investment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Income Taxes
Low income housing tax credits	$ 210	$ 210	$ 630	$ 630
Low income housing investment expense	$ 209	$ 211	$ 627	$ 631

Benefit Plans - Defined Benefit

Benefit Plans - Defined Benefit Plans - Components of Pension Cost (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Supplemental Retirement Plan
Components of net periodic benefit cost:
Service cost	$ 120	$ 123	$ 360	$ 369
Interest cost	190	234	570	701
Amortization of prior service cost		199	100	199
Amortization of net actuarial loss	136	101	408	291
Net periodic benefit cost	446	657	1,438	1,560
Defined Benefit Plan, Assets for Plan Benefits	0		0
Split-Dollar Life Insurance Benefit Plan
Components of net periodic benefit cost:
Interest cost	54	62	164	185	$ 246
Amortization of prior transition obligation	(1)	(15)	(3)	(45)
Net periodic benefit cost	$ 53	$ 47	$ 161	$ 140

Benefit Plans - Defined Benef_2

Benefit Plans - Defined Benefit Plans - Change in Projected Benefit Obligation (Details) - Split-Dollar Life Insurance Benefit Plan - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Change in projected benefit obligation:
Projected benefit obligation at beginning of year			$ 9,689	$ 8,198	$ 8,198
Interest cost	$ 54	$ 62	164	$ 185	246
Actuarial loss					1,245
Projected benefit obligation at end of period	$ 9,853		$ 9,853		$ 9,689

Benefit Plans - Defined Benef_3

Benefit Plans - Defined Benefit Plans - Amounts Recognized in Accumulated Other Comprehensive Loss (Details) - Split-Dollar Life Insurance Benefit Plan - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Amounts Recognized in Accumulated Other Comprehensive Loss
Net actuarial loss	$ 5,241	$ 5,170
Prior transition obligation	902	970
Accumulated other comprehensive loss	$ 6,143	$ 6,140

Fair Value - Financial Assets a

Fair Value - Financial Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	$ 121,000	$ 235,774
I/O strip receivables	246	305
Agency mortgage-backed securities
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	115,996	175,326
U.S. Treasury
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	5,004	60,448
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	5,004	60,448
Significant Other Observable Inputs (Level 2)
Financial Assets and Liabilities Measured on a Recurring Basis
I/O strip receivables	246	305
Significant Other Observable Inputs (Level 2) \| Agency mortgage-backed securities
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	115,996	175,326
Recurring basis
Transfers between Level 1 and Level 2
Transfers between Level 1 and Level 2	0	0
Transfers between Level 2 and Level 1	$ 0	$ 0

Fair Value - Impaired Loans Hel

Fair Value - Impaired Loans Held-for-investment - Additional Disclosures (Details) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
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 ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Assets
Securities available-for-sale	$ 121,000	$ 235,774
Securities held-to-maturity	539,433	304,927
Federal Home Loan Bank, Federal Reserve Bank stock and other investments, at cost	32,499	33,522
I/O strips receivables	246	305
Liabilities
Subordinated Debt.	39,878	39,740
Significant Other Observable Inputs (Level 2)
Assets
I/O strips receivables	246	305
Carrying amount
Assets
Cash and cash equivalents	1,621,347	1,131,073
Securities available-for-sale	121,000	235,774
Securities held-to-maturity	537,285	297,389
Loans (including loans held-for-sale), net	2,792,857	2,576,560
Federal Home Loan Bank, Federal Reserve Bank stock and other investments, at cost	32,499	33,522
Accrued interest receivable	9,868	10,546
I/O strips receivables	246	305
Liabilities
Time deposits	149,180	153,407
Other deposits	4,577,201	3,761,079
Subordinated Debt.	39,878	39,740
Accrued interest payable	1,062	545
Carried at fair value
Assets
Cash and cash equivalents	1,621,347	1,131,073
Securities available-for-sale	121,000	235,774
Securities held-to-maturity	539,433	304,927
Loans (including loans held-for-sale), net	2,810,897	2,574,692
Accrued interest receivable	9,868	10,546
I/O strips receivables	246	305
Liabilities
Time deposits	149,441	153,740
Other deposits	4,577,201	3,761,079
Subordinated Debt.	40,478	40,340
Accrued interest payable	1,062	545
Carried at fair value \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets
Cash and cash equivalents	1,621,347	1,131,073
Securities available-for-sale	5,004	60,448
Accrued interest receivable	26	309
Carried at fair value \| Significant Other Observable Inputs (Level 2)
Assets
Securities available-for-sale	115,996	175,326
Securities held-to-maturity	539,433	304,927
Loans (including loans held-for-sale), net	3,678	1,699
Accrued interest receivable	1,749	1,512
I/O strips receivables	246	305
Liabilities
Time deposits	149,441	153,740
Other deposits	4,577,201	3,761,079
Subordinated Debt.	40,478	40,340
Accrued interest payable	1,062	545
Carried at fair value \| Significant Unobservable Inputs (Level 3)
Assets
Loans (including loans held-for-sale), net	2,807,219	2,572,993
Accrued interest receivable	$ 8,093	$ 8,725

Equity Plan - General Disclosur

Equity Plan - General Disclosures (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	May 21, 2020	May 20, 2020
2013 Plan
Equity Plan
Number of shares authorized for equity plan		5,000,000	3,000,000
Number of shares available for future grants	1,949,605
Options
Equity Plan
Vesting period	4 years
Expiration term	10 years
Number of equity awards issued (in shares)	360,750
Restricted stock
Equity Plan
Number of equity awards issued (in shares)	187,325
Fair value of awards vested	$ 1,749

Equity Plan - Stock Option Acti

Equity Plan - Stock Option Activity (Details) - Options - USD ($)	9 Months Ended
	Sep. 30, 2021
Number of Shares
Outstanding at the beginning of the period (in shares)	2,546,821
Granted (in shares)	360,750
Exercised (in shares)	(195,892)
Forfeited or expired (in shares)	(55,560)
Outstanding at the end of the period (in shares)	2,656,119
Vested or expected to vest (in shares)	2,496,752
Exercisable at the end of the period (in shares)	1,994,928
Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share)	$ 9.30
Granted (in dollars per share)	12.05
Exercised (in dollars per share)	5.47
Forfeited or expired (in dollars per share)	12.79
Outstanding at the end of the period (in dollars per share)	$ 9.88
Additional Information
Weighted Average Remaining Contractual Life - Outstanding at the end of the period (in years)	5 years 6 months 25 days
Weighted Average Remaining Contractual Life - Vested or expected to vest (in years)	5 years 6 months 25 days
Weighted Average Remaining Contractual Life - Exercisable at the end of the period (in years)	4 years 6 months
Aggregate Intrinsic Value - Outstanding at the end of the period (in dollars)	$ 6,663,854
Aggregate Intrinsic Value - Vested or expected to vest (in dollars)	6,264,023
Aggregate Intrinsic Value - Exercisable at the end of the period (in dollars)	$ 6,146,459

Equity Plan - Information Relat

Equity Plan - Information Related to the Equity Plans for each of the Last Three Years (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Information Related to the Equity Plans
Cash received from option exercise	$ 1,069	$ 1,708
Options
Information Related to the Equity Plans
Intrinsic value of options exercised	1,103,925	2,242,512
Cash received from option exercise	1,069,391	1,707,587
Tax benefit realized from option exercises	$ 58,208	$ 58,575
Weighted average fair value of options granted (in dollars per share)	$ 2.32	$ 1.15

Equity Plan - Unrecognized Comp

Equity Plan - Unrecognized Compensation Cost - Nonvested Stock Options (Details) - Options $ in Thousands	9 Months Ended
	Sep. 30, 2021USD ($)
Unrecognized Compensation Cost
Total unrecognized compensation cost related to nonvested stock options granted	$ 1,263
Expected weighted-average period for recognition of compensation costs related to nonvested stock options	2 years 9 months 14 days

Equity Plan - Assumptions Used

Equity Plan - Assumptions Used to Estimate Fair Value (Details) - Options	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Assumptions Used to Estimate Fair Value
Expected life in months	72 months	72 months
Volatility (as a percent)	33.00%	29.00%
Weighted average risk-free interest rate (as a percent)	1.09%	0.53%
Expected dividends (as a percent)	4.32%	5.71%

Equity Plan - Restricted Stock

Equity Plan - Restricted Stock Activity (Details) - Restricted stock	9 Months Ended
	Sep. 30, 2021$ / sharesshares
Number of Shares
Nonvested shares at the beginning of the period (in shares) \| shares	298,700
Granted (in shares) \| shares	187,325
Vested (in shares) \| shares	(153,101)
Forfeited or expired (in shares) \| shares	(34,358)
Nonvested shares at the end of the period (in shares) \| shares	298,566
Weighted Average Grant Date Fair Value
Nonvested shares at the beginning of the period (in dollars per share) \| $ / shares	$ 10.83
Granted (in dollars per share) \| $ / shares	12.01
Vested (in dollars per share) \| $ / shares	11.42
Forfeited or expired (in dollars per share) \| $ / shares	10.23
Nonvested shares at the end of the period (in dollars per share) \| $ / shares	$ 11.03

Equity Plan - Unrecognized Co_2

Equity Plan - Unrecognized Compensation Cost - Nonvested Restricted Stock Awards (Details) - Restricted stock $ in Thousands	9 Months Ended
	Sep. 30, 2021USD ($)
Unrecognized Compensation Cost
Total unrecognized compensation cost related to nonvested restricted stock awards	$ 2,679
Expected weighted-average period for recognition of compensation costs related to nonvested restricted stock awards	1 year 10 months 9 days

Subordinated Debt (Details)

Subordinated Debt (Details) - USD ($)	May 26, 2017	Sep. 30, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Principal amount	$ 40,000,000
Fixed interest rate (as a percent)	5.25%
Subordinated debt, net of issuance costs		$ 39,878,000	$ 39,740,000
Debt Issuance Costs		$ 122,000
LIBOR
Debt Instrument [Line Items]
Rate of interest added to base rate	336.50%

Capital Requirements - General

Capital Requirements - General Information (Details)	Mar. 27, 2020	Sep. 30, 2021	Dec. 31, 2020
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
Capital conservation buffer (as a percent)		2.50%	2.50%
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	Sep. 30, 2021USD ($)	Dec. 31, 2020USD ($)
Total Capital (to risk-weighted assets)
Actual, Amount	$ 498,940	$ 483,870
Required For Capital Adequacy Purposes, Amount	$ 346,493	$ 307,067
Actual, Ratio (as a percent)	0.151	0.165
Required For Capital Adequacy Purposes, Ratio (as a percent)	0.105	0.105
Tier 1 Capital (to risk-weighted assets)
Actual, Amount	$ 425,834	$ 410,307
Required For Capital Adequacy Purposes, Amount	$ 280,495	$ 248,578
Actual, Ratio (as a percent)	0.129	0.140
Required For Capital Adequacy Purposes, Ratio (as a percent)	0.085	0.085
Common Equity Tier 1 Capital (to risk-weighted assets)
Actual, Amount	$ 425,834	$ 410,307
Required For Capital Adequacy Purposes, Amount	$ 230,996	$ 204,711
Actual, Ratio (as a percent)	0.129%	0.14%
Required For Capital Adequacy Purposes, Ratio (as a percent)	0.07%	0.07%
Tier 1 Capital (to average assets)
Actual, Amount	$ 425,834	$ 410,307
Required For Capital Adequacy Purposes, Amount	$ 197,900	$ 180,281
Actual, Ratio (as a percent)	0.086	0.091
Required For Capital Adequacy Purposes, Ratio (as a percent)	0.040	0.040
HBC (Wholly-owned Subsidiary)
Total Capital (to risk-weighted assets)
Actual, Amount	$ 477,175	$ 461,933
To Be Well Capitalized Under Regulatory Requirements, Amount	329,773	292,258
Required For Capital Adequacy Purposes, Amount	$ 346,262	$ 306,871
Actual, Ratio (as a percent)	0.145	0.158
To Be Well Capitalized Under Regulatory Requirements, Ratio (as a percent)	0.100	0.100
Required For Capital Adequacy Purposes, Ratio (as a percent)	0.105	0.105
Tier 1 Capital (to risk-weighted assets)
Actual, Amount	$ 443,947	$ 428,109
To Be Well Capitalized Under Regulatory Requirements, Amount	263,818	233,806
Required For Capital Adequacy Purposes, Amount	$ 280,307	$ 248,419
Actual, Ratio (as a percent)	0.135	0.146
To Be Well Capitalized Under Regulatory Requirements, Ratio (as a percent)	0.080	0.080
Required For Capital Adequacy Purposes, Ratio (as a percent)	0.085	0.085
Common Equity Tier 1 Capital (to risk-weighted assets)
Actual, Amount	$ 443,947	$ 428,109
To Be Well Capitalized Under Regulatory Requirements, Amount	214,352	189,968
Required For Capital Adequacy Purposes, Amount	$ 230,841	$ 204,580
Actual, Ratio (as a percent)	0.135%	0.146%
To Be Well Capitalized Under Regulatory Requirements, Ratio (as a percent)	0.065%	0.065%
Required For Capital Adequacy Purposes, Ratio (as a percent)	0.07%	0.07%
Tier 1 Capital (to average assets)
Actual, Amount	$ 443,947	$ 428,109
To Be Well Capitalized Under Regulatory Requirements, Amount	247,264	225,263
Required For Capital Adequacy Purposes, Amount	$ 197,812	$ 180,211
Actual, Ratio (as a percent)	0.090	0.095
To Be Well Capitalized Under Regulatory Requirements, Ratio (as a percent)	0.050	0.050
Required For Capital Adequacy Purposes, Ratio (as a percent)	0.040	0.040

Capital Requirements - Dividend

Capital Requirements - Dividends to Parent (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2021	Dec. 31, 2020
Cash dividend
Subordinated Debt.	$ 39,878			$ 39,878	$ 39,740
HBC (Wholly-owned Subsidiary)
Cash dividend
Cash dividend available	27,173			27,173
Dividends paid to parent company	$ 8,000	$ 8,000	$ 8,000	$ 24,000

Commitments and Loss Continge_3

Commitments and Loss Contingencies - Financial Instruments with Off-Balance Sheet Risk (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Commitments and Contingencies
Reserve for legal settlement	$ 500	$ 4,000	$ 4,500
Commitments to extend credit, fixed rate	124,608		124,608		$ 124,609
Commitments to extend credit, variable rate	1,076,404		1,076,404		989,584
Commitment to extend credit, total	1,201,012		$ 1,201,012		$ 1,114,193
Percentage of unused commitments to outstanding gross loans			42.00%	44.00%	42.00%
Off-Balance Sheet, Credit Loss, Liability, Credit Loss Expenses (Reduction)			$ (77)
Off-balance sheet, credit loss liability increase due to offsetting increase in loss factors in CECL model			1,001		$ 1,078
Unused lines of credit and commitments to make loans
Commitments and Contingencies
Commitments to extend credit, fixed rate	121,481		121,481		121,560
Commitments to extend credit, variable rate	1,061,659		1,061,659		970,614
Commitment to extend credit, total	1,183,140		1,183,140		1,092,174
Standby letters of credit
Commitments and Contingencies
Commitments to extend credit, fixed rate	3,127		3,127		3,049
Commitments to extend credit, variable rate	14,745		14,745		18,970
Commitment to extend credit, total	$ 17,872		$ 17,872		$ 22,019

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Revenue Recognition (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Disaggregation of Revenue [Line Items]
Non-interest Income In-scope of Topic 606	$ 584	$ 632	$ 1,844	$ 3,042
Non-interest Income Out-of-scope of Topic 606	1,824	1,963	5,034	4,824
Total noninterest income	2,408	2,595	6,878	7,866
Service charges and fees on deposit accounts
Disaggregation of Revenue [Line Items]
Non-interest Income In-scope of Topic 606	$ 584	$ 632	$ 1,844	$ 2,251
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	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	Gain on the disposition of foreclosed assets

Noninterest Expense (Details)

Noninterest Expense (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
Noninterest Expense (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Jun. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Noninterest Expense
Salaries and employee benefits	$ 12,461		$ 11,967	$ 38,991	$ 38,470
Occupancy and equipment	2,151		2,283	6,672	5,821
Professional fees	1,211		1,352	4,701	3,942
Insurance expense	949		591	2,273	1,625
Amortization of intangible assets	754		965	2,241	2,787
Data processing	507		463	1,624	2,218
Reserve for litigation	500	$ 4,000		4,500
Software subscriptions	461		641	1,438	2,276
Client services	424		167	1,076	650
Other	2,413		2,739	7,334	10,165
Total noninterest expense, excluding merger-related costs	21,831		21,168	70,850	67,954
Salaries and employee benefits merger-related costs					356
Other	(7)		17	27	2,144
Total merger-related costs	$ (7)		$ 17	$ 27	$ 2,500

Leases (Details)

Leases (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Leases (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Leases
Lessee, Operating Lease, Option to renew			true
Operating Lease Cost (Cost resulting from lease payments)	$ 1,621	$ 1,664	$ 4,913	$ 5,166
Operating Lease - Operating Cash Flows (Fixed Payments)	1,432	1,463	3,837	4,032
Operating Lease - ROU assets	35,707	37,000	35,707	37,000
Operating Lease - Liabilities	$ 35,707	$ 37,000	$ 35,707	$ 37,000
Operating Lease, Liability, Statement of Financial Position [Extensible List]	Operating Lease - Liabilities	Operating Lease - Liabilities	Operating Lease - Liabilities	Operating Lease - Liabilities
Weighted Average Lease Term - Operating Leases	7 years 7 months 2 days	8 years 5 months 12 days	7 years 7 months 2 days	8 years 5 months 12 days
Weighted Average Discount Rate - Operating Leases	4.48%	4.54%	4.48%	4.54%

Leases - Maturity Analysis (Det

Leases - Maturity Analysis (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Sep. 30, 2020
Operating Lease Payments Due
2021 remaining	$ 1,567
2022	6,353
2023	5,724
2024	5,341
2025	4,929
Thereafter	19,011
Total undiscounted cash flows	42,925
Discount on cash flows	(7,218)
Total lease liability	$ 35,707	$ 37,000

Business Segment Information -

Business Segment Information - Business Segments (Details)	9 Months Ended
Business Segment Information - Business Segments (Details)	Sep. 30, 2021segment
Business Segment Information
Number of business segments	2
Focus
Business Segment Information
Number of business segments	2

Business Segment Information _2

Business Segment Information - Operating Statements (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Operating Income
Interest income	$ 39,907			$ 36,252			$ 113,300	$ 114,326
Total interest expense	1,725			2,087			5,284	6,641
Net interest income	38,182			34,165			108,016	107,685
Provision for (recapture of) credit losses on loans	(514)			197			(2,519)	14,581
Net interest income after provision	38,696			33,968			110,535	93,104
Noninterest income	2,408			2,595			6,878	7,866
Noninterest expense	21,831			21,168			70,850	67,954
Income before income taxes	19,273			15,395			46,563	33,016
Income tax expense	5,555			4,198			12,828	9,340
Net income	13,718	$ 8,813	$ 11,204	11,197	$ 10,618	$ 1,861	33,735	23,676
Total assets	5,463,002			4,606,785			5,463,002	4,606,785	$ 4,634,114
Loans, net of deferred fees	2,832,859			2,697,016			2,832,859	2,697,016	2,619,261
Goodwill	167,631			167,631			167,631	167,631	167,631
Banking
Operating Income
Interest income	37,093			33,820			105,064	106,455
Intersegment interest allocations	219			184			632	686
Total interest expense	1,725			2,087			5,284	6,641
Net interest income	35,587			31,917			100,412	100,500
Provision for (recapture of) credit losses on loans	(588)			169			(2,537)	14,150
Net interest income after provision	36,175			31,748			102,949	86,350
Noninterest income	2,313			2,412			6,522	7,318
Noninterest expense	20,428			19,594			66,656	63,113
Intersegment expense allocations	69			72			302	307
Income before income taxes	18,129			14,638			43,117	30,862
Income tax expense	5,217			3,974			11,809	8,703
Net income	12,912			10,664			31,308	22,159
Total assets	5,392,948			4,541,331			5,392,948	4,541,331
Loans, net of deferred fees	2,776,114			2,649,334			2,776,114	2,649,334
Goodwill	154,587			154,587			154,587	154,587	154,587
Factoring
Operating Income
Interest income	2,814			2,432			8,236	7,871
Intersegment interest allocations	(219)			(184)			(632)	(686)
Net interest income	2,595			2,248			7,604	7,185
Provision for (recapture of) credit losses on loans	74			28			18	431
Net interest income after provision	2,521			2,220			7,586	6,754
Noninterest income	95			183			356	548
Noninterest expense	1,403			1,574			4,194	4,841
Intersegment expense allocations	(69)			(72)			(302)	(307)
Income before income taxes	1,144			757			3,446	2,154
Income tax expense	338			224			1,019	637
Net income	806			533			2,427	1,517
Total assets	70,054			65,454			70,054	65,454
Loans, net of deferred fees	56,745			47,682			56,745	47,682
Goodwill	$ 13,044			$ 13,044			$ 13,044	$ 13,044	$ 13,044

Subsequent Events (Details)

Subsequent Events (Details) - $ / shares	Oct. 28, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020
Subsequent Event [Line Items]
Quarterly cash dividends declared to holders of common stock		$ 0.13	$ 0.13	$ 0.13	$ 0.13	$ 0.13	$ 0.13
Subsequent Event
Subsequent Event [Line Items]
Quarterly cash dividends declared to holders of common stock	$ 0.13