Heritage Commerce (HTBK) 10-Q5 May 222022 Q1 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2022	Apr. 29, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2022
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		60,439,607
Document Fiscal Year Focus	2022
Entity Central Index Key	0001053352
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Assets
Cash and due from banks	$ 29,729,000	$ 15,703,000
Other investments and interest-bearing deposits in other financial institutions	1,187,436,000	1,290,513,000
Total cash and cash equivalents	1,217,165,000	1,306,216,000
Securities available-for-sale, at fair value	111,217,000	102,252,000
Securities held-to-maturity, at amortized cost, net of allowance for credit losses of $39 at March 31, 2022 and $43 at December 31, 2021 (fair value of $690,784 at March 31, 2022 and $657,649 at December 31, 2021)	736,823,000	658,397,000
Loans held-for-sale - SBA, at lower of cost or fair value, including deferred costs	831,000	2,367,000
Loans, net of deferred fees	3,024,064,000	3,087,326,000
Allowance for credit losses on loans	(42,788,000)	(43,290,000)
Loans, net	2,981,276,000	3,044,036,000
Federal Home Loan Bank, Federal Reserve Bank stock and other investments, at cost	32,509,000	32,504,000
Company-owned life insurance	78,069,000	77,589,000
Premises and equipment, net	9,580,000	9,639,000
Goodwill	167,631,000	167,631,000
Other intangible assets	13,009,000	13,668,000
Accrued interest receivable and other assets	79,288,000	85,110,000
Total assets	5,427,398,000	5,499,409,000
Deposits:
Demand, noninterest-bearing	1,811,943,000	1,903,768,000
Demand, interest-bearing	1,268,942,000	1,308,114,000
Savings and money market	1,447,434,000	1,375,825,000
Time deposits - under $250	38,417,000	38,734,000
Time deposits - $250 and over	93,161,000	94,700,000
CDARS - interest-bearing demand, money market and time deposits	30,008,000	38,271,000
Total deposits	4,689,905,000	4,759,412,000
Subordinated debt, net of issuance costs	39,987,000	39,925,000
Accrued interest payable and other liabilities	96,450,000	102,044,000
Total liabilities	4,826,342,000	4,901,381,000
Shareholders' equity:
Preferred stock, no par value; 10,000,000 shares authorized; none issued and outstanding at March 31, 2022 and December 31, 2021
Common stock, no par value; 100,000,000 shares authorized; 60,407,846 shares issued and outstanding at March 31, 2022 and 60,339,837 shares issued and outstanding at December 31, 2021	498,763,000	497,695,000
Retained earnings	116,347,000	111,329,000
Accumulated other comprehensive loss	(14,054,000)	(10,996,000)
Total shareholders' equity	601,056,000	598,028,000
Total liabilities and shareholders' equity	$ 5,427,398,000	$ 5,499,409,000

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Securities held-to-maturity
Allowance for credit losses	$ 39	$ 43
Securities held-to-maturity, fair value (in dollars)	$ 690,784	$ 657,649
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	60,407,846	60,339,837
Common stock, shares outstanding	60,407,846	60,339,837

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Mar. 31, 2022	Mar. 31, 2021
Interest income:
Loans, including fees	$ 35,101	$ 33,836
Securities, taxable	3,444	1,728
Securities, exempt from Federal tax	297	429
Other investments, interest-bearing deposits in other financial institutions and Federal funds sold	1,064	768
Total interest income	39,906	36,761
Interest expense:
Deposits	1,114	1,232
Subordinated debt	571	571
Total interest expense	1,685	1,803
Net interest income before provision for credit losses on loans	38,221	34,958
Provision for (recapture of) credit losses on loans	(567)	(1,512)
Net interest income after provision for credit losses on loans	38,788	36,470
Noninterest income:
Gain (loss) on warrants	637
Service charges and fees on deposit accounts	612	601
Increase in cash surrender value of life insurance	480	456
Gain on sales of SBA loans	156	550
Servicing income	106	182
Termination fees		90
Gain on proceeds from company owned life insurance		66
Other	469	356
Total noninterest income	2,460	2,301
Noninterest expense:
Salaries and employee benefits	13,821	13,958
Occupancy and equipment	2,437	2,274
Professional fees	1,080	1,719
Other	5,914	5,293
Total noninterest expense	23,252	23,244
Income before income taxes	17,996	15,527
Income tax expense	5,130	4,323
Net income	$ 12,866	$ 11,204
Earnings per common share:
Basic (in dollars per share)	$ 0.21	$ 0.19
Diluted (in dollars per share)	$ 0.21	$ 0.19
Service charges and fees on deposit accounts
Noninterest income:
Revenue, Product and Service [Extensible List]	Service charges and fees on deposit accounts	Service charges and fees on deposit accounts

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 12,866	$ 11,204
Other comprehensive income (loss):
Change in net unrealized holding (losses) gains on available-for-sale securities and I/O strips	(4,405)	(849)
Deferred income taxes	1,277	247
Change in net unamortized unrealized gain on securities available-for-sale that were reclassified to securities held-to-maturity		(13)
Deferred income taxes		4
Change in unrealized (losses) gains on securities and I/O strips, net of deferred income taxes	(3,128)	(611)
Change in net pension and other benefit plan liability adjustment	104	89
Deferred income taxes	(34)	(29)
Change in pension and other benefit plan liability, net of deferred income taxes	70	60
Other comprehensive loss	(3,058)	(551)
Total comprehensive income	$ 9,808	$ 10,653

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Retained Earnings	Accumulated Other Comprehensive Income / (Loss)	Total
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 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, 2021	$ 497,695	111,329	(10,996)	598,028
Balance (in shares) at Dec. 31, 2021	60,339,837
Increase (Decrease) in Shareholders' Equity
Net income		12,866		12,866
Other comprehensive loss			(3,058)	(3,058)
Amortization of restricted stock awards, net of forfeitures and taxes	$ 518			518
Cash dividend declared		(7,848)		(7,848)
Stock option expense, net of forfeitures and taxes	149			149
Stock options exercised	$ 401			401
Stock options exercised (in shares)	68,009
Balance at Mar. 31, 2022	$ 498,763	$ 116,347	$ (14,054)	$ 601,056
Balance (in shares) at Mar. 31, 2022	60,407,846

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
Cash dividend declared per share (in dollars per share)	$ 0.13	$ 0.13

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 12,866	$ 11,204
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of discounts and premiums on securities	675	1,071
Gain on sale of SBA loans	(156)	(550)
Proceeds from sale of SBA loans originated for sale	2,146	5,632
SBA loans originated for sale	(934)	(6,217)
Provision for (recapture of) credit losses on loans	(567)	(1,512)
Increase in cash surrender value of life insurance	(480)	(456)
Depreciation and amortization	283	243
Amortization of other intangible assets	659	733
Stock option expense, net	149	132
Amortization of restricted stock awards, net	518	458
Amortization of subordinated debt issuance costs	46	46
Gain on proceeds from company-owned life insurance		(66)
Effect of changes in:
Accrued interest receivable and other assets	7,053	623
Accrued interest payable and other liabilities	(5,475)	(1,085)
Net cash provided by operating activities	16,783	10,256
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of securities available-for-sale	(21,656)
Purchase of securities held-to-maturity	(109,610)	(40,366)
Maturities/paydowns/calls of securities available-for-sale	8,099	37,765
Maturities/paydowns/calls of securities held-to-maturity	30,709	30,601
Net change in loans	63,807	(84,038)
Changes in Federal Home Loan Bank stock and other investments	(5)	(4)
Purchase of premises and equipment	(224)	(4)
Proceeds from redemption of company-owned life insurance		624
Net cash (used in) investing activities	(28,880)	(55,422)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net change in deposits	(69,507)	364,616
Exercise of stock options	401	320
Payment of cash dividends	(7,848)	(7,789)
Net cash (used-in) provided by financing activities	(76,954)	357,147
Net increase in cash and cash equivalents	(89,051)	311,981
Cash and cash equivalents, beginning of period	1,306,216	1,131,073
Cash and cash equivalents, end of period	1,217,165	1,443,054
Supplemental disclosures of cash flow information:
Interest paid	1,112	1,242
Income taxes paid, net	(654)	$ (149)
Supplemental schedule of non-cash activity:
Transfer of loans held-for-sale to loan portfolio	$ 480

Basis of Presentation

Basis of Presentation	3 Months Ended
Basis of Presentation	Mar. 31, 2022
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, 2021. 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 months ended March 31, 2022 are not necessarily indicative of the results expected for any subsequent period or for the entire year ending December 31, 2022. 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 Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 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. The ASU provides optional expedients and exceptions for applying GAAP to loan and lease agreements, derivative contracts, and other transactions affected by the anticipated transition away from London Inter-Bank Offered Rate (“LIBOR”) toward new interest rate benchmarks. For transactions that are modified because of reference rate reform and that meet certain scope guidance (i) modifications of loan agreements should be accounted for by prospectively adjusting the effective interest rate and the modification will be considered "minor" so that any existing unamortized origination fees/costs would carry forward and continue to be amortized and (ii) modifications of lease agreements should be accounted for as a continuation of the existing agreement with - - . - , , In March 2022, the FASB issued ASU No. 2022-02 Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restrucurings and Vintage Disclosures, which 1) eliminates the accounting guidance for troubled debt restructurings ("TDRs") by creditors while enhancing the disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty; and 2) requires that an entity disclose current-period gross writeoffs by year of origination for financing receivables and net investments in leases. ASU 2022-02 is effective for fiscal years beginning after December 15, 2022 and the amendments should be applied prospectively, although the entity has the option to apply a modified retrospective transition method for the recognition and measurement of TDRs, resulting in a cumulative-effect adjustment to retained earnings in the period of adoption. The Company is currently evaluating the impact of adopting the new guidance on its consolidated financial statements.

Earnings Per Share

Earnings Per Share	3 Months Ended
Earnings Per Share	Mar. 31, 2022
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 1,048,267 and 1,019,481 weighted average stock options outstanding for the three months ended March 31, 2022 and 2021, 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 March 31, 2022 2021 (Dollars in thousands, except per share amounts) Net income $ 12,866 $ 11,204 Weighted average common shares outstanding for basic earnings per common share 60,393,883 59,926,816 Dilutive potential common shares 527,952 477,397 Shares used in computing diluted earnings per common share 60,921,835 60,404,213 Basic earnings per share $ 0.21 $ 0.19 Diluted earnings per share $ 0.21 $ 0.19

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss) ("AOCI")	3 Months Ended
Accumulated Other Comprehensive Income (Loss) ("AOCI")	Mar. 31, 2022
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 March 31, 2022 and 2021 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, 2022, net of taxes $ 2,153 $ — $ (13,149) $ (10,996) Other comprehensive (loss) before reclassification, net of taxes (3,128) — (3) (3,131) Amounts reclassified from other comprehensive income, net of taxes — — 73 73 Net current period other comprehensive income (loss), net of taxes (3,128) — 70 (3,058) Ending balance March 31, 2022, net of taxes $ (975) $ — $ (13,079) $ (14,054) Beginning balance January 1, 2021, net of taxes $ 3,929 $ 261 $ (14,907) $ (10,717) Other comprehensive (loss) before reclassification, net of taxes (602) — (53) (655) Amounts reclassified from other comprehensive income (loss), net of taxes — (9) 113 104 Net current period other comprehensive income (loss), net of taxes (602) (9) 60 (551) Ending balance March 31, 2021, net of taxes $ 3,327 $ 252 $ (14,847) $ (11,268) (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 March 31, Affected Line Item Where Details About AOCI Components 2022 2021 Net Income is Presented (Dollars in thousands) Amortization of unrealized gain on securities available- for-sale that were reclassified to securities held-to-maturity $ — $ 13 Interest income on taxable securities — (4) Income tax expense — 9 Net of tax Amortization of defined benefit pension plan items (1) Prior transition obligation and actuarial losses (2) 11 1 Prior service cost and actuarial losses (3) (114) (161) (103) (160) Other noninterest expense 30 47 Income tax benefit (73) (113) Net of tax Total reclassification from AOCI for the period $ (73) $ (104) (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	3 Months Ended
Securities	Mar. 31, 2022
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 March 31, 2022 Cost Gains (Losses) Losses Value (Dollars in thousands) Securities available-for-sale: Agency mortgage-backed securities $ 91,059 $ 19 $ (1,425) $ — $ 89,653 U.S. Treasury 21,657 5 (98) — 21,564 Total $ 112,716 $ 24 $ (1,523) $ — $ 111,217 Gross Gross Estimated Allowance Amortized Unrecognized Unrecognized Fair for Credit March 31, 2022 Cost Gains (Losses) Value Losses (Dollars in thousands) Securities held-to-maturity: Agency mortgage-backed securities $ 696,161 $ 28 $ (46,254) $ 649,935 $ — Municipals - exempt from Federal tax 40,701 197 (49) 40,849 (39) Total $ 736,862 $ 225 $ (46,303) $ 690,784 $ (39) Gross Gross Allowance Estimated Amortized Unrealized Unrealized for Credit Fair December 31, 2021 Cost Gains (Losses) Losses Value (Dollars in thousands) Securities available-for-sale: Agency mortgage-backed securities $ 99,359 $ 2,893 $ — $ — $ 102,252 Total $ 99,359 $ 2,893 $ — $ — $ 102,252 Gross Gross Estimated Allowance Amortized Unrecognized Unrecognized Fair for Credit December 31, 2021 Cost Gains (Losses) Value Losses (Dollars in thousands) Securities held-to-maturity: Agency mortgage-backed securities $ 607,377 $ 3,157 $ (4,752) $ 605,782 $ — Municipals - exempt from Federal tax 51,063 804 — 51,867 (43) Total $ 658,440 $ 3,961 $ (4,752) $ 657,649 $ (43) Securities with unrealized losses at March 31, 2022 and December 31, 2021, 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 March 31, 2022 Value (Losses) Value (Losses) Value (Losses) (Dollars in thousands) Securities available-for-sale: Agency mortgage-backed securities $ 84,890 $ (1,425) $ — $ — $ 84,890 $ (1,425) U.S. Treasury 11,858 (98) — — 11,858 (98) Total $ 96,748 $ (1,523) $ — $ — $ 96,748 $ (1,523) Securities held-to-maturity: Agency mortgage-backed securities $ 620,134 $ (42,837) $ 25,465 $ (3,417) $ 645,599 $ (46,254) Municipals — exempt from Federal tax 5,944 (49) — — 5,944 (49) Total $ 626,078 $ (42,886) $ 25,465 $ (3,417) $ 651,543 $ (46,303) Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2021 Value (Losses) Value (Losses) Value (Losses) (Dollars in thousands) Securities held-to-maturity: Agency mortgage-backed securities $ 408,856 $ (3,319) $ 27,997 $ (1,433) $ 436,853 $ (4,752) Total $ 408,856 $ (3,319) $ 27,997 $ (1,433) $ 436,853 $ (4,752) 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 March 31, 2022, the Company held 395 securities (108 available-for-sale and 287 held-to-maturity), of which 266 had fair value below amortized cost. At March 31, 2022, there were $84,890,000 of agency mortgage-backed securities available-for-sale, and $11,858,000 of U.S. Treasury securities available-for-sale, carried with an unrealized loss for less than 12 months. At March 31, 2022, there were $620,134,000 of agency mortgage-backed securities held-to-maturity, and $5,944,000 of municipal securities, carried with an unrealized loss for less than 12 months, and $25,465,000 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 ($44,409,000), and the total unrealized loss for securities carried for 12 months or more was ($3,417,000) at March 31, 2022. The unrealized loss was due to higher interest rates in comparison to when the security was purchased. The issuers are of high credit quality and all principal amounts are expected to be paid when securities mature. The fair value is expected to recover as the securities approach their maturity date and/or market rates decline. The Company does not believe that it is more likely than not that the Company will be required to sell a security in an unrealized loss position prior to recovery in value. Therefore, the Company does not consider the agency mortgage-backed securities and U.S. Treasury securities to have credit-related losses as of March 31, 2022. The amortized cost and estimated fair values of securities as of March 31, 2022 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 after one through five years $ 21,657 $ 21,564 Agency mortgage-backed securities 91,059 89,653 Total $ 112,716 $ 111,217 Held-to-maturity Amortized Estimated Cost Fair Value (Dollars in thousands) Due after three months through one year $ 545 $ 548 Due after one through five years 7,348 7,402 Due after five through ten years 24,800 24,861 Due after ten years 8,008 8,038 Agency mortgage-backed securities 696,161 649,935 Total $ 736,862 $ 690,784 Securities with amortized cost of $53,897,000 and $42,473,000 as of March 31, 2022 and December 31, 2021 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 three months ended March 31, 2022 of the allowance for credit losses on debt securities held-to-maturity held at period end: Municipals (Dollars in thousands) Beginning balance January 1, 2022 $ 43 Provision for (recapture of) credit losses (4) Ending balance March 31, 2022 $ 39 For the three months ended March 31, 2022, there was a reduction of $4,000 to the allowance for credit losses on the Company’s held-to-maturity municipal investment securities portfolio. This reduction was the result of a reduction in municipal securities amortized balances resulting from regular payments. The bond ratings for the Company’s municipal investment securities at March 31, 2022 were consistent with the ratings at December 31, 2021.

Loans and Allowance for Credit

Loans and Allowance for Credit Losses on Loans	3 Months Ended
Loans and Allowance for Credit Losses on Loans	Mar. 31, 2022
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 On January 1, 2020, the Company adopted the current expected credit loss (“CECL”) model under ASU 2016-13 (Topic 326) using the modified retrospective approach. The allowance for credit losses on loans is an estimate of the current expected credit losses in the loan portfolio. Loans are charged-off against the allowance when management determines that a loan balance has become uncollectible. Subsequent recoveries, if any, are credited to the allowance for credit losses on loans. Management’s methodology for estimating the allowance balance consists of several key elements, which include pooling loans with similar characteristics into segments and using a discounted cash flow calculation to estimate losses. The discounted cash flow model inputs include loan level cash flow estimates for each loan segment based on peer and bank historic loss correlations with certain economic factors. Management uses a four quarter forecast of each economic factor that is used for each loan segment and the economic factors are assumed to revert to the historic mean over an eight quarter period after the 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. Management has also considered other qualitative risks such as collateral values, concentrations of credit risk (geographic, large borrower, and industry), economic conditions, changes in underwriting standards, experience and depth of lending staff, trends in delinquencies, and the level of criticized loans to address asset-specific risks and current conditions that were not fully considered by the macroeconomic variables driving the quantitative estimate. 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 fluctuate 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 $37,393,000 of Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”) loans at March 31, 2022 and $88,726,000 at December 31, 2021. 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. These loans are generally revolving lines of credit. 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 . These are generally term loans. 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. Loan Distribution Loans by portfolio segment and the allowance for credit losses on loans were as follows for the periods indicated: March 31, December 31, 2022 2021 (Dollars in thousands) Loans held-for-investment: Commercial $ 605,446 $ 682,834 Real estate: CRE - owner occupied 597,542 595,934 CRE - non-owner occupied 928,220 902,326 Land and construction 153,323 147,855 Home equity 111,609 109,579 Multifamily 221,767 218,856 Residential mortgages 391,171 416,660 Consumer and other 17,110 16,744 Loans 3,026,188 3,090,788 Deferred loan fees, net (2,124) (3,462) Loans, net of deferred fees 3,024,064 3,087,326 Allowance for credit losses on loans (42,788) (43,290) Loans, net $ 2,981,276 $ 3,044,036 Changes in the allowance for credit losses on loans were as follows for the periods indicated: Three Months Ended March 31, 2022 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 $ 8,414 $ 7,954 $ 17,125 $ 1,831 $ 864 $ 2,796 $ 4,132 $ 174 $ 43,290 Charge-offs (16) — — — — — — — (16) Recoveries 54 3 — — 24 — — — 81 Net recoveries 38 3 — — 24 — — — 65 Provision for (recapture of) credit losses on loans (1,651) (1,560) 2,288 175 (166) (252) 625 (26) (567) End of period balance $ 6,801 $ 6,397 $ 19,413 $ 2,006 $ 722 $ 2,544 $ 4,757 $ 148 $ 42,788 Three Months Ended March 31, 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 (263) — — — — — — — (263) Recoveries 813 4 — 816 23 — — 15 1,671 Net recoveries 550 4 — 816 23 — — 15 1,408 Provision for (recapture of) credit losses on loans (537) (196) 15 (571) (149) (53) (25) 4 (1,512) End of period balance $ 11,600 $ 8,368 $ 16,431 $ 2,754 $ 1,171 $ 2,751 $ 918 $ 303 $ 44,296 The following tables present the amortized cost basis of nonperforming loans and loans past due over 90 days and still accruing at the periods indicated: March 31, 2022 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 $ 236 $ 761 $ 527 $ 1,524 Real estate: CRE - Owner Occupied 1,126 — — 1,126 Home equity 73 — — 73 Multifamily 1,107 — — 1,107 Total $ 2,542 $ 761 $ 527 $ 3,830 December 31, 2021 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 $ 94 $ 1,028 $ 278 $ 1,400 Real estate: CRE - Owner Occupied 1,126 — — 1,126 Home equity 84 — — 84 Multifamily 1,128 — — 1,128 Total $ 2,432 $ 1,028 $ 278 $ 3,738 The following tables present the aging of past due loans by class for the periods indicated: March 31, 2022 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 $ 5,522 $ 1,508 $ 578 $ 7,608 $ 597,838 $ 605,446 Real estate: CRE - Owner Occupied — — 1,126 1,126 596,416 597,542 CRE - Non-Owner Occupied — 707 — 707 927,513 928,220 Land and construction — — — — 153,323 153,323 Home equity — — — — 111,609 111,609 Multifamily — — — — 221,767 221,767 Residential mortgages 4,690 — — 4,690 386,481 391,171 Consumer and other — — — — 17,110 17,110 Total $ 10,212 $ 2,215 $ 1,704 $ 14,131 $ 3,012,057 $ 3,026,188 December 31, 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 $ 2,714 $ 168 $ 408 $ 3,290 $ 679,544 $ 682,834 Real estate: CRE - Owner Occupied — — 1,126 1,126 594,808 595,934 CRE - Non-Owner Occupied — — — — 902,326 902,326 Land and construction — — — — 147,855 147,855 Home equity — — — — 109,579 109,579 Multifamily — — — — 218,856 218,856 Residential mortgages 599 — — 599 416,061 416,660 Consumer and other — — — 16,744 16,744 Total $ 3,313 $ 168 $ 1,534 $ 5,015 $ 3,085,773 $ 3,090,788 Past due loans 30 days or greater totaled $14,131,000 and $5,015,000 at March 31, 2022 and December 31, 2021, respectively, of which $1,362,000 and $1,258,000 were on nonaccrual, at March 31, 2022 and December 31, 2021, respectively. At March 31, 2022, there were also $1,941,000 of loans less than 30 days past due included in nonaccrual loans held-for-investment. At December 31, 2021, there were also $2,202,000 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 March 31, 2022 and December 31, 2021. 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 March 31, 2022 and December 31, 2021. 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 March 31, 2022 and December 31, 2021. 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 March 31, 2022 Amortized 2017 and Cost 03/31/2022 12/31/2021 12/31/2020 12/31/2019 12/31/2018 Prior Basis Total (Dollars in thousands) Commercial: Pass $ 83,467 $ 90,076 $ 51,230 $ 12,145 $ 10,818 $ 10,799 $ 333,283 $ 591,818 Special Mention 2,020 1,283 496 213 706 417 1,888 7,023 Substandard 4 561 258 - 11 167 4,607 5,608 Substandard-Nonaccrual - 548 362 - - 87 - 997 Total 85,491 92,468 52,346 12,358 11,535 11,470 339,778 605,446 CRE - Owner Occupied: Pass 39,671 163,716 125,993 58,738 51,196 127,282 13,022 579,618 Special Mention 568 - 6,657 668 - 347 - 8,240 Substandard 907 - 5,309 - 1,468 874 - 8,558 Substandard-Nonaccrual - - 1,101 - - 25 - 1,126 Total 41,146 163,716 139,060 59,406 52,664 128,528 13,022 597,542 CRE - Non-Owner Occupied: Pass 55,458 376,710 128,498 113,076 35,540 197,894 2,711 909,887 Special Mention - - 5,341 - - 356 5,697 Substandard - 707 5,798 - - 6,131 - 12,636 Substandard-Nonaccrual - - - - - - - - Total 55,458 377,417 139,637 113,076 35,540 204,381 2,711 928,220 Land and construction: Pass 53,912 79,197 11,259 3,925 - 1,289 3,741 153,323 Special Mention - - - - - - - - Substandard - - - - - - - - Substandard-Nonaccrual - - - - - - - - Total 53,912 79,197 11,259 3,925 - 1,289 3,741 153,323 Home equity: Pass - - - - 40 - 109,329 109,369 Special Mention - - - - - - 1,932 1,932 Substandard - - - - - 143 92 235 Substandard-Nonaccrual - - 73 - - - 73 Total - - 73 - 40 143 111,353 111,609 Multifamily: Pass 7,949 100,952 27,780 28,548 16,062 28,204 - 209,495 Special Mention - 6,880 - 4,285 - - 11,165 Substandard - - - - - - - - Substandard-Nonaccrual - 1,107 - - - - - 1,107 Total 7,949 108,939 27,780 32,833 16,062 28,204 - 221,767 Residential mortgage: Pass 765 338,359 17,742 7,643 3,022 23,413 - 390,944 Special Mention - - - - - - - - Substandard - - - - - 227 - 227 Substandard-Nonaccrual - - - - - - - - Total 765 338,359 17,742 7,643 3,022 23,640 - 391,171 Consumer and other: Pass 79 522 - 32 1,411 895 14,159 17,098 Special Mention - - - - - - - - Substandard - 12 - - - - 12 Substandard-Nonaccrual - - - - - - - - Total 79 534 - 32 1,411 895 14,159 17,110 Total loans $ 244,800 $ 1,160,630 $ 387,897 $ 229,273 $ 120,274 $ 398,550 $ 484,764 $ 3,026,188 Risk Grades: Pass $ 241,301 $ 1,149,532 $ 362,502 $ 224,107 $ 118,089 $ 389,776 $ 476,245 $ 2,961,552 Special Mention 2,588 8,163 12,494 5,166 706 1,120 3,820 34,057 Substandard 911 1,280 11,365 - 1,479 7,542 4,699 27,276 Substandard-Nonaccrual - 1,655 1,536 - - 112 - 3,303 Grand Total $ 244,800 $ 1,160,630 $ 387,897 $ 229,273 $ 120,274 $ 398,550 $ 484,764 $ 3,026,188 Revolving Loans Term Loans Amortized Cost Basis by Originated Period as of December 31, 2021 Amortized Cost 2021 2020 2019 2018 2017 Prior Periods Basis Total (Dollars in thousands) Commercial: Pass $ 208,645 65,257 $ 15,086 $ 12,281 $ 7,311 $ 5,507 $ 349,717 $ 663,804 Special Mention 2,210 512 219 764 243 204 4,024 8,176 Substandard 3,709 930 - 13 302 2 4,776 9,732 Substandard-Nonaccrual 595 442 37 - - 48 - 1,122 Total 215,159 67,141 15,342 13,058 7,856 5,761 358,517 682,834 CRE - Owner Occupied: Pass 170,504 135,103 65,596 57,017 31,657 107,203 14,486 581,566 Special Mention 568 2,254 672 - - 355 - 3,849 Substandard 985 6,042 - 1,477 - 889 - 9,393 Substandard-Nonaccrual - 1,100 - - - 26 - 1,126 Total 172,057 144,499 66,268 58,494 31,657 108,473 14,486 595,934 CRE - Non-Owner Occupied: Pass 374,470 141,404 115,170 45,959 68,125 134,454 2,068 881,650 Special Mention - 5,388 - - 1,133 3,816 - 10,337 Substandard - 5,842 - - - 4,497 - 10,339 Substandard-Nonaccrual - - - - - - - - Total 374,470 152,634 115,170 45,959 69,258 142,767 2,068 902,326 Land and construction: Pass 125,844 11,401 4,385 - - 1,300 3,566 146,496 Special Mention 1,359 - - - - - - 1,359 Substandard - - - - - - - - Substandard-Nonaccrual - - - - - - - - Total 127,203 11,401 4,385 - - 1,300 3,566 147,855 Home equity: Pass - - - 46 - - 106,738 106,784 Special Mention - - - - - - 1,931 1,931 Substandard - - - - - 54 726 780 Substandard-Nonaccrual - 84 - - - - - 84 Total - 84 - 46 - 54 109,395 109,579 Multifamily: Pass 102,535 27,955 30,820 16,151 16,261 13,895 - 207,617 Special Mention 5,804 - 4,307 - - - - 10,111 Substandard - - - - - - - - Substandard-Nonaccrual 1,128 - - - - - - 1,128 Total 109,467 27,955 35,127 16,151 16,261 13,895 - 218,856 Residential mortgage: Pass 360,424 17,875 8,065 3,070 6,015 19,967 - 415,416 Special Mention - - - - - 1,244 - 1,244 Substandard - - - - - - - - Substandard-Nonaccrual - - - - - - - - Total 360,424 17,875 8,065 3,070 6,015 21,211 - 416,660 Consumer and other: Pass 491 2 40 1,426 14 1,000 13,756 16,729 Special Mention - - - - - - - - Substandard 15 - - - - - - 15 Substandard-Nonaccrual - - - - - - - - Total 506 2 40 1,426 14 1,000 13,756 16,744 Total loans $ 1,359,286 421,591 $ 244,397 $ 138,204 $ 131,061 $ 294,461 $ 501,788 $ 3,090,788 Risk Grades:. Pass $ 1,342,913 398,997 $ 239,162 $ 135,950 $ 129,383 $ 283,326 $ 490,331 $ 3,020,062 Special Mention 9,941 8,154 5,198 764 1,376 5,619 5,955 37,007 Substandard 4,709 12,814 - 1,490 302 5,442 5,502 30,259 Substandard-Nonaccrual 1,723 1,626 37 - - 74 - 3,460 Grand Total $ 1,359,286 421,591 $ 244,397 $ 138,204 $ 131,061 $ 294,461 $ 501,788 $ 3,090,788 The amortized cost basis of collateral-dependent loans by business assets was $761,000 and $1,028,000 at March 31, 2022 and December 31, 2021, respectfully. When management determines that foreclosures are probable, expected credit losses for collateral-dependent loans are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. For loans for which foreclosure is not probable, but for which repayment is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty, management has elected the practical expedient under ASC 326 to estimate expected credit losses based on the fair value of collateral, adjusted for selling costs as appropriate. The class of loan represents the primary collateral type associated with the loan. Significant quarter over quarter changes are reflective of changes in nonaccrual status and not necessarily associated with credit quality indicators like appraisal value. The book balance of troubled debt restructurings at March 31, 2022 was $481,000 which included $355,000 of nonaccrual loans and $126,000 of accruing loans. The book balance of troubled debt restructurings at December 31, 2021 was $500,000 which included $372,000 of nonaccrual loans and $128,000 of accruing loans. Approximately $279,000 and $290,000 in specific reserves were established with respect to these loans as of March 31, 2022 and December 31, 2021, respectively. There were no loans modified as a troubled debt restructuring during the three months ended March 31, 2022. There was one new loan with total recorded investment of $3,000 that was modified as a troubled debt restructuring during the three months ended March 31, 2021. The following table presents loans by class modified as troubled debt restructurings for the period indicated: Three Months Ended March 31, 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 A loan is considered to be in payment default when it is 30 days contractually past due under the modified terms. There were no defaults on troubled debt restructurings, within twelve months following the modification, during the three months ended March 31, 2022 and 2021. A loan that is a troubled debt restructuring on nonaccrual status may return to accruing status after a period of at least six months of consecutive payments in accordance with the modified terms. On April 7, 2020, U.S. banking agencies issued the Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus. The statement describes accounting for COVID-19-related loan modifications and clarifies the interaction between current accounting rules and the temporary relief provided by the CARES Act. Initially, the Bank made accommodations for payment deferrals for a number of customers with a window of up to 90 days, with the potential of an additional 90 days of payment deferral (180 days maximum) upon application. The Bank also waived all customary applicable fees. Of the loans for which deferrals were originally granted, all have returned to regular payment status. At March 31, 2022, there were no remaining deferments.

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	3 Months Ended
Goodwill and Other Intangible Assets	Mar. 31, 2022
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets	6) Goodwill and Other Intangible Assets Goodwill At March 31, 2022, 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, 2021 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, 2021 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: March 31, December 31, 2022 2021 (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: March 31, 2022 Gross Carrying Accumulated Amount Amortization Total (Dollars in thousands) Core deposit intangibles $ 25,023 $ (12,593) $ 12,430 Customer relationship and brokered relationship intangibles 1,900 (1,409) 491 Below market leases 110 (22) 88 Total $ 27,033 $ (14,024) $ 13,009 December 31, 2021 Gross Carrying Accumulated Amount Amortization Total (Dollars in thousands) Core deposit intangibles $ 25,023 $ (11,982) $ 13,041 Customer relationship and brokered relationship intangibles 1,900 (1,361) 539 Below market leases 110 (22) 88 Total $ 27,033 $ (13,365) $ 13,668 As of March 31, 2022, 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) 2022 remaining $ 1,836 142 $ (2) $ 1,976 2023 2,217 190 (2) 2,405 2024 2,023 159 5 2,187 2025 1,795 — 18 1,813 2026 1,512 — 18 1,530 2027 1,438 — 18 1,456 Thereafter 1,609 — 33 1,642 $ 12,430 $ 491 $ 88 $ 13,009 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 March 31, 2022 and December 31, 2021.

Income Taxes

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2022
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 $28,054,000, and $28,757,000, at March 31, 2022 and December 31, 2021, 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 March 31, 2022 and December 31, 2021 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: March 31, December 31, 2022 2021 (Dollars in thousands) Low income housing investments $ 4,169 $ 4,380 Future commitments $ 568 $ 568 The Company expects $55,000 of the future commitments to be paid in 2022, and $513,000 in 2023 through 2025. For tax purposes, the Company had low income housing tax credits of $210,000 for both the three months ended March 31, 2022 and March 31, 2021, and low income housing investment expense of $211,000 and $208,000, respectively. The Company recognized low income housing investment expense as a component of income tax expense.

Benefit Plans

Benefit Plans	3 Months Ended
Benefit Plans	Mar. 31, 2022
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 March 31, 2022 2021 (Dollars in thousands) Components of net periodic benefit cost: Service cost $ 87 $ 120 Interest cost 216 190 Amortization of prior service cost — 25 Amortization of net actuarial loss 114 136 Net periodic benefit cost $ 417 $ 471 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: March 31, December 31, 2022 2021 (Dollars in thousands) Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 9,244 $ 9,689 Interest cost 62 219 Actuarial loss — (664) Projected benefit obligation at end of period $ 9,306 $ 9,244 March 31, December 31, 2022 2021 (Dollars in thousands) Net actuarial loss $ 4,633 $ 4,601 Prior transition obligation 858 879 Accumulated other comprehensive loss $ 5,491 $ 5,480 Three Months Ended March 31, 2022 2021 (Dollars in thousands) Amortization of prior transition obligation and actuarial losses $ (11) $ (1) Interest cost 62 55 Net periodic benefit cost $ 51 $ 54

Fair Value

Fair Value	3 Months Ended
Fair Value	Mar. 31, 2022
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 March 31, 2022 Available-for-sale securities: Agency mortgage-backed securities $ 89,653 $ — $ 89,653 $ — U.S. Treasury 21,564 21,564 — — I/O strip receivables 208 — 208 — Assets at December 31, 2021 Available-for-sale securities: Agency mortgage-backed securities $ 102,252 $ — $ 102,252 $ — I/O strip receivables 221 — 221 — 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 March 31, 2022 or December 31, 2021. 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 March 31, 2022 and December 31, 2021, there were no foreclosed assets on the balance sheet. The carrying amounts and estimated fair values of financial instruments at March 31, 2022 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 $ 1,217,165 $ 1,217,165 $ — $ — $ 1,217,165 Securities available-for-sale 111,217 21,564 89,653 — 111,217 Securities held-to-maturity 736,823 — 690,784 — 690,784 Loans (including loans held-for-sale), net 2,982,107 — 831 2,954,560 2,955,391 FHLB stock, FRB stock, and other investments 32,509 — — — N/A Accrued interest receivable 11,120 52 1,998 9,070 11,120 I/O strips receivables 208 — 208 — 208 Liabilities: Time deposits $ 137,203 $ — $ 137,417 $ — $ 137,417 Other deposits 4,552,702 — 4,552,702 — 4,552,702 Subordinated debt 39,987 — 39,587 — 39,587 Accrued interest payable 1,005 — 1,005 — 1,005 The carrying amounts and estimated fair values of the Company’s financial instruments at December 31, 2021: 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 $ 1,306,216 $ 1,306,216 $ — $ — $ 1,306,216 Securities available-for-sale 102,252 — 102,252 — 102,252 Securities held-to-maturity 658,397 — 657,649 — 657,649 Loans (including loans held-for-sale), net 3,046,403 — 2,367 3,061,558 3,063,925 FHLB stock, FRB stock, and other investments 32,504 — — — N/A Accrued interest receivable 10,781 — 1,719 9,062 10,781 I/O strips receivables 221 — 221 — 221 Liabilities: Time deposits $ 139,834 $ — $ 140,086 $ — $ 140,086 Other deposits 4,619,578 — 4,619,578 — 4,619,578 Subordinated debt 39,925 — 40,425 — 40,425 Accrued interest payable 477 — 477 — 477

Equity Plan

Equity Plan	3 Months Ended
Equity Plan	Mar. 31, 2022
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. There were no nonqualified stock options or shares of restricted stock granted for the three months ended March 31, 2022. There were 1,962,229 shares available for the issuance of equity awards under the 2013 Plan as of March 31, 2022. 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, 2022 2,584,632 $ 10.00 Exercised 68,009 $ 5.90 Forfeited or expired (14,969) $ 11.16 Outstanding at March 31, 2022 2,501,654 $ 10.10 5.29 $ 5,248,759 Vested or expected to vest 2,351,555 5.29 $ 4,933,833 Exercisable at March 31, 2022 1,987,706 4.47 $ 4,903,446 Information related to the equity plans for the periods indicated: Three Months Ended March 31, 2022 2021 Intrinsic value of options exercised $ 415,117 $ 167,420 Cash received from option exercise $ 401,136 $ 319,862 Tax benefit (expense) realized from option exercises $ 31,971 $ (1,539) As of March 31, 2022, there was $965,000 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 2.46 years. 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, 2022 298,566 $ 11.03 Vested (4,255) $ 11.75 Nonvested shares at March 31, 2022 294,311 $ 12.24 As of March 31, 2022, there was $1,638,000 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 1.68 years.

Subordinated Debt

Subordinated Debt	3 Months Ended
Subordinated Debt	Mar. 31, 2022
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

Capital Requirements

Capital Requirements	3 Months Ended
Capital Requirements	Mar. 31, 2022
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. 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 March 31, 2022. There are no conditions or events since March 31, 2022, that management believes have changed the categorization of the Company or HBC as “well-capitalized.” 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 delayed the effects of CECL on our regulatory capital through the end of 2021. The effects are being 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 March 31, 2022 and December 31, 2021, 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 for the periods indicated: Required For Capital Adequacy Purposes Actual Under Basel III Amount Ratio Amount Ratio (1) (Dollars in thousands) As of March 31, 2022 Total Capital $ 513,272 14.6 % $ 370,203 10.5 % (to risk-weighted assets) Tier 1 Capital $ 438,203 12.4 % $ 299,688 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 438,203 12.4 % $ 246,802 7.0 % (to risk-weighted assets) Tier 1 Capital $ 438,203 8.3 % $ 210,246 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, 2021 Total Capital $ 506,209 14.4 % $ 369,711 10.5 % (to risk-weighted assets) Tier 1 Capital $ 433,488 12.3 % $ 299,290 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 433,488 12.3 % $ 246,474 7.0 % (to risk-weighted assets) Tier 1 Capital $ 433,488 7.9 % $ 220,193 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 for the periods indicated: 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 March 31, 2022 Total Capital $ 491,349 13.9 % $ 352,436 10.0 % $ 370,058 10.5 % (to risk-weighted assets) Tier 1 Capital $ 456,267 12.9 % $ 281,949 8.0 % $ 299,571 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 456,267 12.9 % $ 229,084 6.5 % $ 246,705 7.0 % (to risk-weighted assets) Tier 1 Capital $ 456,267 8.7 % $ 262,709 5.0 % $ 210,167 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, 2021 Total Capital $ 484,382 13.8 % $ 351,839 10.0 % $ 369,431 10.5 % (to risk-weighted assets) Tier 1 Capital $ 451,586 12.8 % $ 281,471 8.0 % $ 299,063 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 451,586 12.8 % $ 228,695 6.5 % $ 246,287 7.0 % (to risk-weighted assets) Tier 1 Capital $ 451,586 8.2 % $ 275,109 5.0 % $ 220,087 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 $39,987,000 at March 31, 2022, 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 March 31, 2022, HBC would not be required to obtain regulatory approval, and the amount available for cash dividends is $41,140,000 . HBC distributed to HCC dividends of $8,000,000, during the first quarter of 2022.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2022
Commitments and Contingencies
Commitments and 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 March 31, 2022 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 the Bank 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 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 recovery of the $4,000,000 settlement amount plus $1,000,000 of legal costs and interest 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 the Bank, and others, in the Solano County Superior Court for the State of California. The case relates to the Bank’s former deposit relationships with investment funds sponsored by D.C. Solar and affiliates (collectively “D.C. Solar”). D.C. Solar is a former customer that allegedly perpetrated a Ponzi scheme and declared bankruptcy. In October 2021, the court sustained the Bank’s demurrer without leave to amend on all but two counts. Subsequently, the plaintiffs sought to overturn the court’s ruling in favor of the Bank by filing a petition for a writ of mandate in the California Court of Appeals, where the petition is pending as of the date of this report. We intend to vigorously defend this action. ● In December 2021, East West Bank, et al. v. Heritage Bank of Commerce was filed against the Bank and one of its former employees in the Solano County Superior Court for the State of California. The case arose out of the Bank’s former deposit relationship with D.C. Solar and its sponsored investment funds. In March 2022, the plaintiffs dismissed its case against the Bank and its former employee. ● In December 2020, Solarmore Management Services, Inc. v. Jeff Carpoff et al., (“Solarmore”) was filed as an amended complaint in the United States District Court for the Eastern District of California against the Bank, a former employee and other unrelated parties. The case arose out of the Bank’s former deposit relationship with D.C. Solar and its sponsored investment funds. On February 4, 2022, Solarmore voluntarily dismissed the Bank without prejudice, but not the Bank’s former employee. The Bank’s former employee remains a party to the action. ● 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 February 2021, the Bank was notified of a 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 is being added as a plaintiff 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, 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 $1,154,361,000 at March 31, 2022, and $1,150,811,000 at December 31, 2021. Unused commitments represented 38% outstanding gross loans at March 31, 2022, 40% at March 31, 2021, and 37% at December 31, 2021. 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: March 31, 2022 December 31, 2021 Fixed Variable Fixed Variable Rate Rate Total Rate Rate Total (Dollars in thousands) Unused lines of credit and commitments to make loans $ 114,333 $ 1,027,606 $ 1,141,939 $ 119,071 $ 1,015,588 $ 1,134,659 Standby letters of credit 3,058 9,364 12,422 3,084 13,068 16,152 $ 117,391 $ 1,036,970 $ 1,154,361 $ 122,155 $ 1,028,656 $ 1,150,811 For the three months ended March 31, 2022, there was a decrease of $40,000 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 three months of 2022 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 $775,000 at March 31, 2022 and $815,000 at December 31, 2021.

Revenue Recognition

Revenue Recognition	3 Months Ended
Revenue Recognition	Mar. 31, 2022
Revenue Recognition
Revenue Recognition	14) Revenue Recognition On January 1, 2018, the Company adopted ASU No. 2014-09 (Topic 606) Service charges and fees on deposit accounts consist of account analysis fees (i.e., net fees earned on analyzed business and public checking accounts), monthly service fees, check orders, and other deposit account related fees. We sometimes charge customers fees that are not specifically related to the customer accessing its funds, such as account maintenance or dormancy fees. The amount of deposit fees assessed varies based on a number of factors, such as the type of customer and account, the quantity of transactions, and the size of the deposit balance. We charge, and in some circumstances do not charge, fees to earn additional revenue and influence certain customer behavior. An example would be where we do not charge a monthly service fee, or do not charge for certain transactions, for customers that have a high deposit balance. Deposit fees are considered either transactional in nature (such as wire transfers, nonsufficient fund fees, and stop payment orders) or non-transactional (such as account maintenance and dormancy fees). These fees are recognized as earned or as transactions occur and services are provided. Check orders and other deposit account related fees are largely transactional based and, therefore, the Company’s performance obligation is satisfied, and related revenue recognized, at a point in time. Payment for service charges on deposit accounts is primarily received immediately or in the following month through a direct charge to customers’ accounts. The Company currently accounts for sales of foreclosed assets in accordance with Topic 360-20. In most cases the Company will seek to engage a real estate agent for the sale of foreclosed assets immediately upon foreclosure. However, in some cases, where there is clear demand for the property in question, the Company may elect to allow for a marketing period on no more than six months to attempt a direct sale of the property. We generally recognize the sale, and any associated gain or loss, of a real estate property when control of the property transfers. Any gains or losses from the sale are recorded to noninterest income/expense. The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the periods indicated: Three Months Ended March 31, 2022 2021 (Dollars in thousands) Noninterest Income In-scope of Topic 606: Service charges and fees on deposit accounts $ 612 $ 601 Total noninterest income in-scope of Topic 606 612 601 Noninterest Income Out-of-scope of Topic 606 1,848 1,700 Total noninterest income $ 2,460 $ 2,301

Noninterest Expense

Noninterest Expense	3 Months Ended
Noninterest Expense	Mar. 31, 2022
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 March 31, 2022 2021 (Dollars in thousands) Salaries and employee benefits $ 13,821 $ 13,958 Occupancy and equipment 2,437 2,274 Professional fees 1,080 1,719 Insurance expense 1,043 663 Amortization of intangible assets 659 733 Data processing 651 534 Federal Deposit Insurance Corporation ("FDIC") assessments 479 146 Other 3,082 3,217 Total noninterest expense $ 23,252 $ 23,244

Leases

Leases	3 Months Ended
Leases	Mar. 31, 2022
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 March 31, 2022 2021 (Dollars in thousands) Operating Lease Cost (Cost resulting from lease payments) $ 1,620 $ 1,671 Operating Lease - Operating Cash Flows (Fixed Payments) $ 1,210 $ 1,186 Operating Lease - ROU assets $ 33,669 $ 37,405 Operating Lease - Liabilities $ 33,669 $ 37,405 Weighted Average Lease Term - Operating Leases 7.19 years 8.17 years Weighted Average Discount Rate - Operating Leases 4.49% 4.49% The following maturity analysis shows the undiscounted cash flows due on the Company’s operating lease liabilities as of March 31, 2022: (Dollars in thousands) 2022 $ 4,769 2023 5,724 2024 5,341 2025 4,929 2026 4,357 Thereafter 14,654 Total undiscounted cash flows 39,774 Discount on cash flows (6,105) Total lease liability $ 33,669

Business Segment Information

Business Segment Information	3 Months Ended
Business Segment Information	Mar. 31, 2022
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 March 31, 2022 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 37,113 $ 2,793 $ 39,906 Intersegment interest allocations 237 (237) — Total interest expense 1,685 — 1,685 Net interest income 35,665 2,556 38,221 Provision for (recapture of) credit losses on loans (539) (28) (567) Net interest income after provision 36,204 2,584 38,788 Noninterest income 2,398 62 2,460 Noninterest expense 21,767 1,485 23,252 Intersegment expense allocations 114 (114) — Income before income taxes 16,949 1,047 17,996 Income tax expense 4,821 309 5,130 Net income $ 12,128 $ 738 $ 12,866 Total assets $ 5,352,709 $ 74,689 $ 5,427,398 Loans, net of deferred fees $ 2,962,823 $ 61,241 $ 3,024,064 Goodwill $ 154,587 $ 13,044 $ 167,631 (1) Includes the holding company’s results of operations Three Months Ended March 31, 2021 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 34,111 $ 2,650 $ 36,761 Intersegment interest allocations 211 (211) — Total interest expense 1,803 — 1,803 Net interest income 32,519 2,439 34,958 Provision (recapture) for credit losses on loans (1,463) (49) (1,512) Net interest income after provision 33,982 2,488 36,470 Noninterest income 2,160 141 2,301 Noninterest expense 21,897 1,347 23,244 Intersegment expense allocations 106 (106) — Income before income taxes 14,351 1,176 15,527 Income tax expense 3,975 348 4,323 Net income $ 10,376 $ 828 $ 11,204 Total assets $ 4,933,350 $ 68,040 $ 5,001,390 Loans, net of deferred fees $ 2,656,178 $ 48,529 $ 2,704,707 Goodwill $ 154,587 $ 13,044 $ 167,631 (1) Includes the holding company’s results of operations

Subsequent Events

Subsequent Events	3 Months Ended
Subsequent Events	Mar. 31, 2022
Subsequent Events
Subsequent Events	18) Subsequent Events On April 28, 2022, 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 May 26, 2022, to shareholders of record at the close of the business day on May 12, 2022.

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
Basis of Presentation (Policies)	Mar. 31, 2022
Basis of Presentation
Description of Business and 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, 2021. 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 months ended March 31, 2022 are not necessarily indicative of the results expected for any subsequent period or for the entire year ending December 31, 2022.
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 Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 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. The ASU provides optional expedients and exceptions for applying GAAP to loan and lease agreements, derivative contracts, and other transactions affected by the anticipated transition away from London Inter-Bank Offered Rate (“LIBOR”) toward new interest rate benchmarks. For transactions that are modified because of reference rate reform and that meet certain scope guidance (i) modifications of loan agreements should be accounted for by prospectively adjusting the effective interest rate and the modification will be considered "minor" so that any existing unamortized origination fees/costs would carry forward and continue to be amortized and (ii) modifications of lease agreements should be accounted for as a continuation of the existing agreement with - - . - , , In March 2022, the FASB issued ASU No. 2022-02 Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restrucurings and Vintage Disclosures, which 1) eliminates the accounting guidance for troubled debt restructurings ("TDRs") by creditors while enhancing the disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty; and 2) requires that an entity disclose current-period gross writeoffs by year of origination for financing receivables and net investments in leases. ASU 2022-02 is effective for fiscal years beginning after December 15, 2022 and the amendments should be applied prospectively, although the entity has the option to apply a modified retrospective transition method for the recognition and measurement of TDRs, resulting in a cumulative-effect adjustment to retained earnings in the period of adoption. The Company is currently evaluating the impact of adopting the new guidance on its consolidated financial statements.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
Earnings Per Share (Tables)	Mar. 31, 2022
Earnings Per Share
Schedule of reconciliation of factors used in computing basic and diluted earnings per common share	Three Months Ended March 31, 2022 2021 (Dollars in thousands, except per share amounts) Net income $ 12,866 $ 11,204 Weighted average common shares outstanding for basic earnings per common share 60,393,883 59,926,816 Dilutive potential common shares 527,952 477,397 Shares used in computing diluted earnings per common share 60,921,835 60,404,213 Basic earnings per share $ 0.21 $ 0.19 Diluted earnings per share $ 0.21 $ 0.19

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income ("AOCI") (Tables)	3 Months Ended
Accumulated Other Comprehensive Income ("AOCI") (Tables)	Mar. 31, 2022
Accumulated Other Comprehensive Income ("AOCI")
Schedule of changes in AOCI by component	Three Months Ended March 31, 2022 and 2021 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, 2022, net of taxes $ 2,153 $ — $ (13,149) $ (10,996) Other comprehensive (loss) before reclassification, net of taxes (3,128) — (3) (3,131) Amounts reclassified from other comprehensive income, net of taxes — — 73 73 Net current period other comprehensive income (loss), net of taxes (3,128) — 70 (3,058) Ending balance March 31, 2022, net of taxes $ (975) $ — $ (13,079) $ (14,054) Beginning balance January 1, 2021, net of taxes $ 3,929 $ 261 $ (14,907) $ (10,717) Other comprehensive (loss) before reclassification, net of taxes (602) — (53) (655) Amounts reclassified from other comprehensive income (loss), net of taxes — (9) 113 104 Net current period other comprehensive income (loss), net of taxes (602) (9) 60 (551) Ending balance March 31, 2021, net of taxes $ 3,327 $ 252 $ (14,847) $ (11,268) (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 March 31, Affected Line Item Where Details About AOCI Components 2022 2021 Net Income is Presented (Dollars in thousands) Amortization of unrealized gain on securities available- for-sale that were reclassified to securities held-to-maturity $ — $ 13 Interest income on taxable securities — (4) Income tax expense — 9 Net of tax Amortization of defined benefit pension plan items (1) Prior transition obligation and actuarial losses (2) 11 1 Prior service cost and actuarial losses (3) (114) (161) (103) (160) Other noninterest expense 30 47 Income tax benefit (73) (113) Net of tax Total reclassification from AOCI for the period $ (73) $ (104) (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)	3 Months Ended
Securities (Tables)	Mar. 31, 2022
Securities
Schedule of amortized cost and estimated fair value of securities	Gross Gross Allowance Estimated Amortized Unrealized Unrealized for Credit Fair March 31, 2022 Cost Gains (Losses) Losses Value (Dollars in thousands) Securities available-for-sale: Agency mortgage-backed securities $ 91,059 $ 19 $ (1,425) $ — $ 89,653 U.S. Treasury 21,657 5 (98) — 21,564 Total $ 112,716 $ 24 $ (1,523) $ — $ 111,217 Gross Gross Estimated Allowance Amortized Unrecognized Unrecognized Fair for Credit March 31, 2022 Cost Gains (Losses) Value Losses (Dollars in thousands) Securities held-to-maturity: Agency mortgage-backed securities $ 696,161 $ 28 $ (46,254) $ 649,935 $ — Municipals - exempt from Federal tax 40,701 197 (49) 40,849 (39) Total $ 736,862 $ 225 $ (46,303) $ 690,784 $ (39) Gross Gross Allowance Estimated Amortized Unrealized Unrealized for Credit Fair December 31, 2021 Cost Gains (Losses) Losses Value (Dollars in thousands) Securities available-for-sale: Agency mortgage-backed securities $ 99,359 $ 2,893 $ — $ — $ 102,252 Total $ 99,359 $ 2,893 $ — $ — $ 102,252 Gross Gross Estimated Allowance Amortized Unrecognized Unrecognized Fair for Credit December 31, 2021 Cost Gains (Losses) Value Losses (Dollars in thousands) Securities held-to-maturity: Agency mortgage-backed securities $ 607,377 $ 3,157 $ (4,752) $ 605,782 $ — Municipals - exempt from Federal tax 51,063 804 — 51,867 (43) Total $ 658,440 $ 3,961 $ (4,752) $ 657,649 $ (43)
Schedule of securities with unrealized losses	Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized March 31, 2022 Value (Losses) Value (Losses) Value (Losses) (Dollars in thousands) Securities available-for-sale: Agency mortgage-backed securities $ 84,890 $ (1,425) $ — $ — $ 84,890 $ (1,425) U.S. Treasury 11,858 (98) — — 11,858 (98) Total $ 96,748 $ (1,523) $ — $ — $ 96,748 $ (1,523) Securities held-to-maturity: Agency mortgage-backed securities $ 620,134 $ (42,837) $ 25,465 $ (3,417) $ 645,599 $ (46,254) Municipals — exempt from Federal tax 5,944 (49) — — 5,944 (49) Total $ 626,078 $ (42,886) $ 25,465 $ (3,417) $ 651,543 $ (46,303) Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2021 Value (Losses) Value (Losses) Value (Losses) (Dollars in thousands) Securities held-to-maturity: Agency mortgage-backed securities $ 408,856 $ (3,319) $ 27,997 $ (1,433) $ 436,853 $ (4,752) Total $ 408,856 $ (3,319) $ 27,997 $ (1,433) $ 436,853 $ (4,752)
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 after one through five years $ 21,657 $ 21,564 Agency mortgage-backed securities 91,059 89,653 Total $ 112,716 $ 111,217 Held-to-maturity Amortized Estimated Cost Fair Value (Dollars in thousands) Due after three months through one year $ 545 $ 548 Due after one through five years 7,348 7,402 Due after five through ten years 24,800 24,861 Due after ten years 8,008 8,038 Agency mortgage-backed securities 696,161 649,935 Total $ 736,862 $ 690,784
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, 2022 $ 43 Provision for (recapture of) credit losses (4) Ending balance March 31, 2022 $ 39

Loans and Allowance for Credi_2

Loans and Allowance for Credit Losses on Loans (Tables)	3 Months Ended
Loans and Allowance for Credit Losses on Loans (Tables)	Mar. 31, 2022
Loans and Allowance for Credit Losses on Loans
Schedule of loans	March 31, December 31, 2022 2021 (Dollars in thousands) Loans held-for-investment: Commercial $ 605,446 $ 682,834 Real estate: CRE - owner occupied 597,542 595,934 CRE - non-owner occupied 928,220 902,326 Land and construction 153,323 147,855 Home equity 111,609 109,579 Multifamily 221,767 218,856 Residential mortgages 391,171 416,660 Consumer and other 17,110 16,744 Loans 3,026,188 3,090,788 Deferred loan fees, net (2,124) (3,462) Loans, net of deferred fees 3,024,064 3,087,326 Allowance for credit losses on loans (42,788) (43,290) Loans, net $ 2,981,276 $ 3,044,036
Schedule of changes in allowance for loan (credit) losses	Three Months Ended March 31, 2022 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 $ 8,414 $ 7,954 $ 17,125 $ 1,831 $ 864 $ 2,796 $ 4,132 $ 174 $ 43,290 Charge-offs (16) — — — — — — — (16) Recoveries 54 3 — — 24 — — — 81 Net recoveries 38 3 — — 24 — — — 65 Provision for (recapture of) credit losses on loans (1,651) (1,560) 2,288 175 (166) (252) 625 (26) (567) End of period balance $ 6,801 $ 6,397 $ 19,413 $ 2,006 $ 722 $ 2,544 $ 4,757 $ 148 $ 42,788 Three Months Ended March 31, 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 (263) — — — — — — — (263) Recoveries 813 4 — 816 23 — — 15 1,671 Net recoveries 550 4 — 816 23 — — 15 1,408 Provision for (recapture of) credit losses on loans (537) (196) 15 (571) (149) (53) (25) 4 (1,512) End of period balance $ 11,600 $ 8,368 $ 16,431 $ 2,754 $ 1,171 $ 2,751 $ 918 $ 303 $ 44,296
Schedule of nonperforming loans by class	March 31, 2022 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 $ 236 $ 761 $ 527 $ 1,524 Real estate: CRE - Owner Occupied 1,126 — — 1,126 Home equity 73 — — 73 Multifamily 1,107 — — 1,107 Total $ 2,542 $ 761 $ 527 $ 3,830 December 31, 2021 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 $ 94 $ 1,028 $ 278 $ 1,400 Real estate: CRE - Owner Occupied 1,126 — — 1,126 Home equity 84 — — 84 Multifamily 1,128 — — 1,128 Total $ 2,432 $ 1,028 $ 278 $ 3,738
Schedule of aging of past due loans by class of loans	March 31, 2022 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 $ 5,522 $ 1,508 $ 578 $ 7,608 $ 597,838 $ 605,446 Real estate: CRE - Owner Occupied — — 1,126 1,126 596,416 597,542 CRE - Non-Owner Occupied — 707 — 707 927,513 928,220 Land and construction — — — — 153,323 153,323 Home equity — — — — 111,609 111,609 Multifamily — — — — 221,767 221,767 Residential mortgages 4,690 — — 4,690 386,481 391,171 Consumer and other — — — — 17,110 17,110 Total $ 10,212 $ 2,215 $ 1,704 $ 14,131 $ 3,012,057 $ 3,026,188 December 31, 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 $ 2,714 $ 168 $ 408 $ 3,290 $ 679,544 $ 682,834 Real estate: CRE - Owner Occupied — — 1,126 1,126 594,808 595,934 CRE - Non-Owner Occupied — — — — 902,326 902,326 Land and construction — — — — 147,855 147,855 Home equity — — — — 109,579 109,579 Multifamily — — — — 218,856 218,856 Residential mortgages 599 — — 599 416,061 416,660 Consumer and other — — — 16,744 16,744 Total $ 3,313 $ 168 $ 1,534 $ 5,015 $ 3,085,773 $ 3,090,788
Summary of loan portfolio by loan type and credit quality classification	Revolving Loans Term Loans Amortized Cost Basis by Originated Period as of March 31, 2022 Amortized 2017 and Cost 03/31/2022 12/31/2021 12/31/2020 12/31/2019 12/31/2018 Prior Basis Total (Dollars in thousands) Commercial: Pass $ 83,467 $ 90,076 $ 51,230 $ 12,145 $ 10,818 $ 10,799 $ 333,283 $ 591,818 Special Mention 2,020 1,283 496 213 706 417 1,888 7,023 Substandard 4 561 258 - 11 167 4,607 5,608 Substandard-Nonaccrual - 548 362 - - 87 - 997 Total 85,491 92,468 52,346 12,358 11,535 11,470 339,778 605,446 CRE - Owner Occupied: Pass 39,671 163,716 125,993 58,738 51,196 127,282 13,022 579,618 Special Mention 568 - 6,657 668 - 347 - 8,240 Substandard 907 - 5,309 - 1,468 874 - 8,558 Substandard-Nonaccrual - - 1,101 - - 25 - 1,126 Total 41,146 163,716 139,060 59,406 52,664 128,528 13,022 597,542 CRE - Non-Owner Occupied: Pass 55,458 376,710 128,498 113,076 35,540 197,894 2,711 909,887 Special Mention - - 5,341 - - 356 5,697 Substandard - 707 5,798 - - 6,131 - 12,636 Substandard-Nonaccrual - - - - - - - - Total 55,458 377,417 139,637 113,076 35,540 204,381 2,711 928,220 Land and construction: Pass 53,912 79,197 11,259 3,925 - 1,289 3,741 153,323 Special Mention - - - - - - - - Substandard - - - - - - - - Substandard-Nonaccrual - - - - - - - - Total 53,912 79,197 11,259 3,925 - 1,289 3,741 153,323 Home equity: Pass - - - - 40 - 109,329 109,369 Special Mention - - - - - - 1,932 1,932 Substandard - - - - - 143 92 235 Substandard-Nonaccrual - - 73 - - - 73 Total - - 73 - 40 143 111,353 111,609 Multifamily: Pass 7,949 100,952 27,780 28,548 16,062 28,204 - 209,495 Special Mention - 6,880 - 4,285 - - 11,165 Substandard - - - - - - - - Substandard-Nonaccrual - 1,107 - - - - - 1,107 Total 7,949 108,939 27,780 32,833 16,062 28,204 - 221,767 Residential mortgage: Pass 765 338,359 17,742 7,643 3,022 23,413 - 390,944 Special Mention - - - - - - - - Substandard - - - - - 227 - 227 Substandard-Nonaccrual - - - - - - - - Total 765 338,359 17,742 7,643 3,022 23,640 - 391,171 Consumer and other: Pass 79 522 - 32 1,411 895 14,159 17,098 Special Mention - - - - - - - - Substandard - 12 - - - - 12 Substandard-Nonaccrual - - - - - - - - Total 79 534 - 32 1,411 895 14,159 17,110 Total loans $ 244,800 $ 1,160,630 $ 387,897 $ 229,273 $ 120,274 $ 398,550 $ 484,764 $ 3,026,188 Risk Grades: Pass $ 241,301 $ 1,149,532 $ 362,502 $ 224,107 $ 118,089 $ 389,776 $ 476,245 $ 2,961,552 Special Mention 2,588 8,163 12,494 5,166 706 1,120 3,820 34,057 Substandard 911 1,280 11,365 - 1,479 7,542 4,699 27,276 Substandard-Nonaccrual - 1,655 1,536 - - 112 - 3,303 Grand Total $ 244,800 $ 1,160,630 $ 387,897 $ 229,273 $ 120,274 $ 398,550 $ 484,764 $ 3,026,188 Revolving Loans Term Loans Amortized Cost Basis by Originated Period as of December 31, 2021 Amortized Cost 2021 2020 2019 2018 2017 Prior Periods Basis Total (Dollars in thousands) Commercial: Pass $ 208,645 65,257 $ 15,086 $ 12,281 $ 7,311 $ 5,507 $ 349,717 $ 663,804 Special Mention 2,210 512 219 764 243 204 4,024 8,176 Substandard 3,709 930 - 13 302 2 4,776 9,732 Substandard-Nonaccrual 595 442 37 - - 48 - 1,122 Total 215,159 67,141 15,342 13,058 7,856 5,761 358,517 682,834 CRE - Owner Occupied: Pass 170,504 135,103 65,596 57,017 31,657 107,203 14,486 581,566 Special Mention 568 2,254 672 - - 355 - 3,849 Substandard 985 6,042 - 1,477 - 889 - 9,393 Substandard-Nonaccrual - 1,100 - - - 26 - 1,126 Total 172,057 144,499 66,268 58,494 31,657 108,473 14,486 595,934 CRE - Non-Owner Occupied: Pass 374,470 141,404 115,170 45,959 68,125 134,454 2,068 881,650 Special Mention - 5,388 - - 1,133 3,816 - 10,337 Substandard - 5,842 - - - 4,497 - 10,339 Substandard-Nonaccrual - - - - - - - - Total 374,470 152,634 115,170 45,959 69,258 142,767 2,068 902,326 Land and construction: Pass 125,844 11,401 4,385 - - 1,300 3,566 146,496 Special Mention 1,359 - - - - - - 1,359 Substandard - - - - - - - - Substandard-Nonaccrual - - - - - - - - Total 127,203 11,401 4,385 - - 1,300 3,566 147,855 Home equity: Pass - - - 46 - - 106,738 106,784 Special Mention - - - - - - 1,931 1,931 Substandard - - - - - 54 726 780 Substandard-Nonaccrual - 84 - - - - - 84 Total - 84 - 46 - 54 109,395 109,579 Multifamily: Pass 102,535 27,955 30,820 16,151 16,261 13,895 - 207,617 Special Mention 5,804 - 4,307 - - - - 10,111 Substandard - - - - - - - - Substandard-Nonaccrual 1,128 - - - - - - 1,128 Total 109,467 27,955 35,127 16,151 16,261 13,895 - 218,856 Residential mortgage: Pass 360,424 17,875 8,065 3,070 6,015 19,967 - 415,416 Special Mention - - - - - 1,244 - 1,244 Substandard - - - - - - - - Substandard-Nonaccrual - - - - - - - - Total 360,424 17,875 8,065 3,070 6,015 21,211 - 416,660 Consumer and other: Pass 491 2 40 1,426 14 1,000 13,756 16,729 Special Mention - - - - - - - - Substandard 15 - - - - - - 15 Substandard-Nonaccrual - - - - - - - - Total 506 2 40 1,426 14 1,000 13,756 16,744 Total loans $ 1,359,286 421,591 $ 244,397 $ 138,204 $ 131,061 $ 294,461 $ 501,788 $ 3,090,788 Risk Grades:. Pass $ 1,342,913 398,997 $ 239,162 $ 135,950 $ 129,383 $ 283,326 $ 490,331 $ 3,020,062 Special Mention 9,941 8,154 5,198 764 1,376 5,619 5,955 37,007 Substandard 4,709 12,814 - 1,490 302 5,442 5,502 30,259 Substandard-Nonaccrual 1,723 1,626 37 - - 74 - 3,460 Grand Total $ 1,359,286 421,591 $ 244,397 $ 138,204 $ 131,061 $ 294,461 $ 501,788 $ 3,090,788
Schedule of loans by class modified as troubled debt restructurings	Three Months Ended March 31, 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

Goodwill and Other Intangible_2

Goodwill and Other Intangible Assets (Tables)	3 Months Ended
Goodwill and Other Intangible Assets (Tables)	Mar. 31, 2022
Goodwill and Other Intangible Assets
Schedule of carrying amount of goodwill by segment	March 31, December 31, 2022 2021 (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	March 31, 2022 Gross Carrying Accumulated Amount Amortization Total (Dollars in thousands) Core deposit intangibles $ 25,023 $ (12,593) $ 12,430 Customer relationship and brokered relationship intangibles 1,900 (1,409) 491 Below market leases 110 (22) 88 Total $ 27,033 $ (14,024) $ 13,009 December 31, 2021 Gross Carrying Accumulated Amount Amortization Total (Dollars in thousands) Core deposit intangibles $ 25,023 $ (11,982) $ 13,041 Customer relationship and brokered relationship intangibles 1,900 (1,361) 539 Below market leases 110 (22) 88 Total $ 27,033 $ (13,365) $ 13,668
Schedule of estimated amortization expense	Customer & Below/ Core Brokered (Above) Total Deposit Relationship Market Amortization Year Intangible Intangible Lease Expense (Dollars in thousands) 2022 remaining $ 1,836 142 $ (2) $ 1,976 2023 2,217 190 (2) 2,405 2024 2,023 159 5 2,187 2025 1,795 — 18 1,813 2026 1,512 — 18 1,530 2027 1,438 — 18 1,456 Thereafter 1,609 — 33 1,642 $ 12,430 $ 491 $ 88 $ 13,009

Income Taxes (Tables)

Income Taxes (Tables)	3 Months Ended
Income Taxes (Tables)	Mar. 31, 2022
Income Taxes
Summary of carrying amount of low income tax housing investment	March 31, December 31, 2022 2021 (Dollars in thousands) Low income housing investments $ 4,169 $ 4,380 Future commitments $ 568 $ 568

Benefit Plans (Tables)

Benefit Plans (Tables)	3 Months Ended
Benefit Plans (Tables)	Mar. 31, 2022
Supplemental Retirement Plan
Benefit plans
Schedule of components of net periodic benefit cost	Three Months Ended March 31, 2022 2021 (Dollars in thousands) Components of net periodic benefit cost: Service cost $ 87 $ 120 Interest cost 216 190 Amortization of prior service cost — 25 Amortization of net actuarial loss 114 136 Net periodic benefit cost $ 417 $ 471
Split-Dollar Life Insurance Benefit Plan
Benefit plans
Schedule of change in projected benefit obligation	March 31, December 31, 2022 2021 (Dollars in thousands) Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 9,244 $ 9,689 Interest cost 62 219 Actuarial loss — (664) Projected benefit obligation at end of period $ 9,306 $ 9,244
Schedule of amounts recognized in accumulated other comprehensive loss	March 31, December 31, 2022 2021 (Dollars in thousands) Net actuarial loss $ 4,633 $ 4,601 Prior transition obligation 858 879 Accumulated other comprehensive loss $ 5,491 $ 5,480
Schedule of components of net periodic benefit cost	Three Months Ended March 31, 2022 2021 (Dollars in thousands) Amortization of prior transition obligation and actuarial losses $ (11) $ (1) Interest cost 62 55 Net periodic benefit cost $ 51 $ 54

Fair Value (Tables)

Fair Value (Tables)	3 Months Ended
Fair Value (Tables)	Mar. 31, 2022
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 March 31, 2022 Available-for-sale securities: Agency mortgage-backed securities $ 89,653 $ — $ 89,653 $ — U.S. Treasury 21,564 21,564 — — I/O strip receivables 208 — 208 — Assets at December 31, 2021 Available-for-sale securities: Agency mortgage-backed securities $ 102,252 $ — $ 102,252 $ — I/O strip receivables 221 — 221 —
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 $ 1,217,165 $ 1,217,165 $ — $ — $ 1,217,165 Securities available-for-sale 111,217 21,564 89,653 — 111,217 Securities held-to-maturity 736,823 — 690,784 — 690,784 Loans (including loans held-for-sale), net 2,982,107 — 831 2,954,560 2,955,391 FHLB stock, FRB stock, and other investments 32,509 — — — N/A Accrued interest receivable 11,120 52 1,998 9,070 11,120 I/O strips receivables 208 — 208 — 208 Liabilities: Time deposits $ 137,203 $ — $ 137,417 $ — $ 137,417 Other deposits 4,552,702 — 4,552,702 — 4,552,702 Subordinated debt 39,987 — 39,587 — 39,587 Accrued interest payable 1,005 — 1,005 — 1,005 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 $ 1,306,216 $ 1,306,216 $ — $ — $ 1,306,216 Securities available-for-sale 102,252 — 102,252 — 102,252 Securities held-to-maturity 658,397 — 657,649 — 657,649 Loans (including loans held-for-sale), net 3,046,403 — 2,367 3,061,558 3,063,925 FHLB stock, FRB stock, and other investments 32,504 — — — N/A Accrued interest receivable 10,781 — 1,719 9,062 10,781 I/O strips receivables 221 — 221 — 221 Liabilities: Time deposits $ 139,834 $ — $ 140,086 $ — $ 140,086 Other deposits 4,619,578 — 4,619,578 — 4,619,578 Subordinated debt 39,925 — 40,425 — 40,425 Accrued interest payable 477 — 477 — 477

Equity Plan (Tables)

Equity Plan (Tables)	3 Months Ended
Equity Plan (Tables)	Mar. 31, 2022
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, 2022 2,584,632 $ 10.00 Exercised 68,009 $ 5.90 Forfeited or expired (14,969) $ 11.16 Outstanding at March 31, 2022 2,501,654 $ 10.10 5.29 $ 5,248,759 Vested or expected to vest 2,351,555 5.29 $ 4,933,833 Exercisable at March 31, 2022 1,987,706 4.47 $ 4,903,446
Schedule of information related to the equity Plan	Three Months Ended March 31, 2022 2021 Intrinsic value of options exercised $ 415,117 $ 167,420 Cash received from option exercise $ 401,136 $ 319,862 Tax benefit (expense) realized from option exercises $ 31,971 $ (1,539)
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, 2022 298,566 $ 11.03 Vested (4,255) $ 11.75 Nonvested shares at March 31, 2022 294,311 $ 12.24

Capital Requirements (Tables)

Capital Requirements (Tables)	3 Months Ended
Capital Requirements (Tables)	Mar. 31, 2022
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 March 31, 2022 Total Capital $ 513,272 14.6 % $ 370,203 10.5 % (to risk-weighted assets) Tier 1 Capital $ 438,203 12.4 % $ 299,688 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 438,203 12.4 % $ 246,802 7.0 % (to risk-weighted assets) Tier 1 Capital $ 438,203 8.3 % $ 210,246 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, 2021 Total Capital $ 506,209 14.4 % $ 369,711 10.5 % (to risk-weighted assets) Tier 1 Capital $ 433,488 12.3 % $ 299,290 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 433,488 12.3 % $ 246,474 7.0 % (to risk-weighted assets) Tier 1 Capital $ 433,488 7.9 % $ 220,193 4.0 % (to average assets) (2) Includes 2.5% capital conservation buffer, except the Tier 1 Capital to average assets ratio.
HBC
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 March 31, 2022 Total Capital $ 491,349 13.9 % $ 352,436 10.0 % $ 370,058 10.5 % (to risk-weighted assets) Tier 1 Capital $ 456,267 12.9 % $ 281,949 8.0 % $ 299,571 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 456,267 12.9 % $ 229,084 6.5 % $ 246,705 7.0 % (to risk-weighted assets) Tier 1 Capital $ 456,267 8.7 % $ 262,709 5.0 % $ 210,167 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, 2021 Total Capital $ 484,382 13.8 % $ 351,839 10.0 % $ 369,431 10.5 % (to risk-weighted assets) Tier 1 Capital $ 451,586 12.8 % $ 281,471 8.0 % $ 299,063 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 451,586 12.8 % $ 228,695 6.5 % $ 246,287 7.0 % (to risk-weighted assets) Tier 1 Capital $ 451,586 8.2 % $ 275,109 5.0 % $ 220,087 4.0 % (to average assets) (1) Includes 2.5% capital conservation buffer, except the Tier 1 Capital to average assets ratio.

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
Commitments and Contingencies (Tables)	Mar. 31, 2022
Commitments and Contingencies
Schedule of commitments to extend credit	March 31, 2022 December 31, 2021 Fixed Variable Fixed Variable Rate Rate Total Rate Rate Total (Dollars in thousands) Unused lines of credit and commitments to make loans $ 114,333 $ 1,027,606 $ 1,141,939 $ 119,071 $ 1,015,588 $ 1,134,659 Standby letters of credit 3,058 9,364 12,422 3,084 13,068 16,152 $ 117,391 $ 1,036,970 $ 1,154,361 $ 122,155 $ 1,028,656 $ 1,150,811

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
Revenue Recognition (Tables)	Mar. 31, 2022
Revenue Recognition
Schedule of noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606	Three Months Ended March 31, 2022 2021 (Dollars in thousands) Noninterest Income In-scope of Topic 606: Service charges and fees on deposit accounts $ 612 $ 601 Total noninterest income in-scope of Topic 606 612 601 Noninterest Income Out-of-scope of Topic 606 1,848 1,700 Total noninterest income $ 2,460 $ 2,301

Noninterest Expense (Tables)

Noninterest Expense (Tables)	3 Months Ended
Noninterest Expense (Tables)	Mar. 31, 2022
Noninterest Expense
Schedule of noninterest expense	Three Months Ended March 31, 2022 2021 (Dollars in thousands) Salaries and employee benefits $ 13,821 $ 13,958 Occupancy and equipment 2,437 2,274 Professional fees 1,080 1,719 Insurance expense 1,043 663 Amortization of intangible assets 659 733 Data processing 651 534 Federal Deposit Insurance Corporation ("FDIC") assessments 479 146 Other 3,082 3,217 Total noninterest expense $ 23,252 $ 23,244

Leases (Tables)

Leases (Tables)	3 Months Ended
Leases (Tables)	Mar. 31, 2022
Leases
Schedule of leases	Three Months Ended March 31, 2022 2021 (Dollars in thousands) Operating Lease Cost (Cost resulting from lease payments) $ 1,620 $ 1,671 Operating Lease - Operating Cash Flows (Fixed Payments) $ 1,210 $ 1,186 Operating Lease - ROU assets $ 33,669 $ 37,405 Operating Lease - Liabilities $ 33,669 $ 37,405 Weighted Average Lease Term - Operating Leases 7.19 years 8.17 years Weighted Average Discount Rate - Operating Leases 4.49% 4.49%
Schedule of maturity analysis shows the undiscounted cash flows due on the Company's operating lease liabilities	(Dollars in thousands) 2022 $ 4,769 2023 5,724 2024 5,341 2025 4,929 2026 4,357 Thereafter 14,654 Total undiscounted cash flows 39,774 Discount on cash flows (6,105) Total lease liability $ 33,669

Business Segment Information (T

Business Segment Information (Tables)	3 Months Ended
Business Segment Information (Tables)	Mar. 31, 2022
Business Segment Information
Schedule of information by operating segment	Three Months Ended March 31, 2022 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 37,113 $ 2,793 $ 39,906 Intersegment interest allocations 237 (237) — Total interest expense 1,685 — 1,685 Net interest income 35,665 2,556 38,221 Provision for (recapture of) credit losses on loans (539) (28) (567) Net interest income after provision 36,204 2,584 38,788 Noninterest income 2,398 62 2,460 Noninterest expense 21,767 1,485 23,252 Intersegment expense allocations 114 (114) — Income before income taxes 16,949 1,047 17,996 Income tax expense 4,821 309 5,130 Net income $ 12,128 $ 738 $ 12,866 Total assets $ 5,352,709 $ 74,689 $ 5,427,398 Loans, net of deferred fees $ 2,962,823 $ 61,241 $ 3,024,064 Goodwill $ 154,587 $ 13,044 $ 167,631 (1) Includes the holding company’s results of operations Three Months Ended March 31, 2021 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 34,111 $ 2,650 $ 36,761 Intersegment interest allocations 211 (211) — Total interest expense 1,803 — 1,803 Net interest income 32,519 2,439 34,958 Provision (recapture) for credit losses on loans (1,463) (49) (1,512) Net interest income after provision 33,982 2,488 36,470 Noninterest income 2,160 141 2,301 Noninterest expense 21,897 1,347 23,244 Intersegment expense allocations 106 (106) — Income before income taxes 14,351 1,176 15,527 Income tax expense 3,975 348 4,323 Net income $ 10,376 $ 828 $ 11,204 Total assets $ 4,933,350 $ 68,040 $ 5,001,390 Loans, net of deferred fees $ 2,656,178 $ 48,529 $ 2,704,707 Goodwill $ 154,587 $ 13,044 $ 167,631 (1) Includes the holding company’s results of operations

Basis of Presentation (Details)

Basis of Presentation (Details)	3 Months Ended
Basis of Presentation (Details)	Mar. 31, 2022USD ($)segment
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
	Mar. 31, 2022	Mar. 31, 2021
Reconciliation of factors used in computing basic and diluted earnings per common share
Net income	$ 12,866	$ 11,204
Weighted average common shares outstanding for basic earnings per common share (in shares)	60,393,883	59,926,816
Dilutive potential common shares	527,952	477,397
Shares used in computing diluted earnings per common share (in shares)	60,921,835	60,404,213
Basic earnings per share (in dollars per share)	$ 0.21	$ 0.19
Diluted earnings per share (in dollars per share)	$ 0.21	$ 0.19
Number of shares not in computing diluted earnings per common share	1,048,267	1,019,481

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (''AOCI'') - Changes in AOCI by Component (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Changes in AOCI by Component
Balance at the beginning of the period, net of taxes	$ (10,996)
Net current period other comprehensive income (loss), net of taxes	(3,058)	$ (551)
Balance at the end of the period, net of taxes	(14,054)
Accumulated Other Comprehensive Income / (Loss)
Changes in AOCI by Component
Balance at the beginning of the period, net of taxes	(10,996)	(10,717)
Other comprehensive (loss) before reclassification, net of taxes	(3,131)	(655)
Amounts reclassified from other comprehensive income (loss), net of taxes	73	104
Net current period other comprehensive income (loss), net of taxes	(3,058)	(551)
Balance at the end of the period, net of taxes	(14,054)	(11,268)
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	2,153	3,929
Other comprehensive (loss) before reclassification, net of taxes	(3,128)	(602)
Net current period other comprehensive income (loss), net of taxes	(3,128)	(602)
Balance at the end of the period, net of taxes	(975)	3,327
Amortization of unrealized gain on securities available-for-sale that were reclassified to securities held-to-maturity
Changes in AOCI by Component
Balance at the beginning of the period, net of taxes		261
Amounts reclassified from other comprehensive income (loss), net of taxes		(9)
Net current period other comprehensive income (loss), net of taxes		(9)
Balance at the end of the period, net of taxes		252
Defined Benefit Pension Plan Items
Changes in AOCI by Component
Balance at the beginning of the period, net of taxes	(13,149)	(14,907)
Other comprehensive (loss) before reclassification, net of taxes	(3)	(53)
Amounts reclassified from other comprehensive income (loss), net of taxes	73	113
Net current period other comprehensive income (loss), net of taxes	70	60
Balance at the end of the period, net of taxes	$ (13,079)	$ (14,847)

Accumulated Other Comprehensi_4

Accumulated Other Comprehensive Income (''AOCI'') - Amount Reclassified from AOCI (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Amount Reclassified from AOCI
Interest income on taxable securities	$ 3,444	$ 1,728
Income tax expense	(5,130)	(4,323)
Net income	12,866	11,204
Amortization of unrealized gain on securities available-for-sale that were reclassified to securities held-to-maturity
Amount Reclassified from AOCI
Net of tax		9
Amortization of unrealized gain on securities available-for-sale that were reclassified to securities held-to-maturity \| Amount Reclassified from AOCI
Amount Reclassified from AOCI
Interest income on taxable securities		13
Income tax expense		(4)
Net income		9
Defined Benefit Pension Plan Items
Amount Reclassified from AOCI
Net of tax	(73)	(113)
Defined Benefit Pension Plan Items \| Amount Reclassified from AOCI
Amount Reclassified from AOCI
Other noninterest expense	(103)	(160)
Income tax benefit	30	47
Net of tax	(73)	(113)
Prior transition obligation \| Amount Reclassified from AOCI
Amount Reclassified from AOCI
Other noninterest expense	11	1
Prior service cost \| Amount Reclassified from AOCI
Amount Reclassified from AOCI
Other noninterest expense	(114)	(161)
Accumulated Other Comprehensive Income / (Loss)
Amount Reclassified from AOCI
Net of tax	(73)	(104)
Accumulated Other Comprehensive Income / (Loss) \| Amount Reclassified from AOCI
Amount Reclassified from AOCI
Net of tax	$ (73)	$ (104)

Securities - Amortized Cost and

Securities - Amortized Cost and Estimated Fair Value of Securities - Securities Available-for-sale (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Securities available-for-sale:
Amortized Cost	$ 112,716	$ 99,359
Gross Unrealized Gains	24	2,893
Gross Unrealized (Losses)	(1,523)
Estimated Fair Value	111,217	102,252
Agency mortgage-backed securities
Securities available-for-sale:
Amortized Cost	91,059	99,359
Gross Unrealized Gains	19	2,893
Gross Unrealized (Losses)	(1,425)
Estimated Fair Value	89,653	$ 102,252
U.S. Treasury
Securities available-for-sale:
Amortized Cost	21,657
Gross Unrealized Gains	5
Gross Unrealized (Losses)	(98)
Estimated Fair Value	$ 21,564

Securities - Amortized Cost a_2

Securities - Amortized Cost and Estimated Fair Value of Securities - Securities Held-to-maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Securities held-to-maturity:
Amortized Cost	$ 736,862	$ 658,440
Gross Unrealized Gains	225	3,961
Gross Unrealized (Losses)	(46,303)	(4,752)
Estimated Fair Value	690,784	657,649
Allowance for credit losses	(39)	(43)
Agency mortgage-backed securities
Securities held-to-maturity:
Amortized Cost	696,161	607,377
Gross Unrealized Gains	28	3,157
Gross Unrealized (Losses)	(46,254)	(4,752)
Estimated Fair Value	649,935	605,782
Municipals - Tax Exempt
Securities held-to-maturity:
Amortized Cost	40,701	51,063
Gross Unrealized Gains	197	804
Gross Unrealized (Losses)	(49)
Estimated Fair Value	40,849	51,867
Allowance for credit losses	$ (39)	$ (43)

Securities - Securities with Un

Securities - Securities with Unrealized Losses - Securities Held-to-maturity (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Securities, Fair Value
Less Than 12 Months	$ 96,748,000
Total	96,748,000
Less Than 12 Months	626,078,000	$ 408,856,000
12 Months or More	25,465,000	27,997,000
Total	651,543,000	436,853,000
Securities, Unrealized (Losses)
Less Than 12 Months	(1,523,000)
Total	(1,523,000)
Less Than 12 Months	(42,886,000)	(3,319,000)
12 Months or More	(3,417,000)	(1,433,000)
Total	(46,303,000)	(4,752,000)
Agency mortgage-backed securities
Securities, Fair Value
Less Than 12 Months	84,890,000
Total	84,890,000
Less Than 12 Months	620,134,000	408,856,000
12 Months or More	25,465,000	27,997,000
Total	645,599,000	436,853,000
Securities, Unrealized (Losses)
Less Than 12 Months	(1,425,000)
Total	(1,425,000)
Less Than 12 Months	(42,837,000)	(3,319,000)
12 Months or More	(3,417,000)	(1,433,000)
Total	(46,254,000)	$ (4,752,000)
U.S. Treasury
Securities, Fair Value
Less Than 12 Months	11,858,000
Total	11,858,000
Securities, Unrealized (Losses)
Less Than 12 Months	(98,000)
Total	(98,000)
Municipals - Tax Exempt
Securities, Fair Value
Less Than 12 Months	5,944,000
Total	5,944,000
Securities, Unrealized (Losses)
Less Than 12 Months	(49,000)
Total	$ (49,000)

Securities - Additional Informa

Securities - Additional Information (Details)	3 Months Ended
Securities - Additional Information (Details)	Mar. 31, 2022USD ($)itemsecurity	Dec. 31, 2021USD ($)
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	395
Number of available for sale securities held \| item	108
Number of held to maturity securities held \| item	287
Number of securities with fair values below amortized cost \| item	266
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months	$ 96,748,000
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	626,078,000	$ 408,856,000
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	25,465,000	27,997,000
Total unrealized loss for securities carried less than 12 months	(44,409,000)
Total unrealized loss for securities carried for 12 months or more	(3,417,000,000)
Agency mortgage-backed securities
Additional Information
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months	84,890,000
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	620,134,000	408,856,000
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	25,465,000	$ 27,997,000
U.S. Treasury
Additional Information
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months	11,858,000
Municipals - Tax Exempt
Additional Information
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	$ 5,944,000

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	Mar. 31, 2022	Dec. 31, 2021
Available-for-sale, Amortized Cost
Due after one year through five years	$ 21,657
Agency mortgage-backed securities	91,059
Total	112,716	$ 99,359
Available-for-sale, Estimated Fair Value
Due after one year through five years	21,564
Agency mortgage-backed securities	89,653
Total	$ 111,217	$ 102,252

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	Mar. 31, 2022	Dec. 31, 2021
Held-to-maturity, Amortized Cost
Due after 3 months through one year	$ 545
Due after one year through five years	7,348
Due after five years through ten years	24,800
Due after ten years	8,008
Agency mortgage-backed securities	696,161
Total	736,862
Held-to-maturity, Estimated Fair Value
Due after 3 months through one year	548
Due after one year through five years	7,402
Due after five years through ten years	24,861
Due after ten years	8,038
Agency mortgage-backed securities	649,935
Total	$ 690,784	$ 657,649

Securities - Securities Pledged

Securities - Securities Pledged to Secure Public Deposits and for Other Purposes (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
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	$ 53,897,000	$ 42,473,000

Securities - Roll-forward by ma

Securities - Roll-forward by major security type (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022USD ($)
Securities
Debt Securities, Held-to-maturity, Allowance for Credit Loss, Beginning Balance	$ 43
Provision for (recapture of) credit losses	(4)
Debt Securities, Held-to-maturity, Allowance for Credit Loss, Ending Balance	$ 39

Loans and Allowance for Credi_3

Loans and Allowance for Credit Losses on Loans - Loans Balance (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020
Loans held-for-investment:
Total loan balance	$ 3,026,188,000	$ 3,090,788,000
Deferred loan fees, net	(2,124,000)	(3,462,000)
Loans, net of deferred fees	3,024,064,000	3,087,326,000	$ 2,704,707,000
Allowance for credit losses on loans	(42,788,000)	(43,290,000)	(44,296,000)	$ (44,400,000)
Loans, net	2,981,276,000	3,044,036,000
Commercial. \| SBA Paycheck Protection Program ("PPP")
Loans held-for-investment:
Allowance for credit losses on loans	0	0
Loans, net	37,393,000	88,726,000
Commercial
Loans held-for-investment:
Total loan balance	605,446,000	682,834,000
Allowance for credit losses on loans	(6,801,000)	(8,414,000)	(11,600,000)	(11,587,000)
Commercial \| Commercial.
Loans held-for-investment:
Total loan balance	605,446,000	682,834,000
Commercial Loans excluding SBA Paycheck Protection Program [Member] \| Commercial.
Loans held-for-investment:
Total loan balance	605,446,000	682,834,000
CRE - owner occupied
Loans held-for-investment:
Total loan balance	597,542,000	595,934,000
Allowance for credit losses on loans	(6,397,000)	(7,954,000)	(8,368,000)	(8,560,000)
CRE - owner occupied \| Real estate
Loans held-for-investment:
Total loan balance	597,542,000	595,934,000
CRE - non-owner occupied
Loans held-for-investment:
Total loan balance	928,220,000	902,326,000
Allowance for credit losses on loans	(19,413,000)	(17,125,000)	(16,431,000)	(16,416,000)
CRE - non-owner occupied \| Real estate
Loans held-for-investment:
Total loan balance	928,220,000	902,326,000
Land and construction
Loans held-for-investment:
Total loan balance	153,323,000	147,855,000
Allowance for credit losses on loans	(2,006,000)	(1,831,000)	(2,754,000)	(2,509,000)
Land and construction \| Real estate
Loans held-for-investment:
Total loan balance	153,323,000	147,855,000
Home equity
Loans held-for-investment:
Total loan balance	111,609,000	109,579,000
Allowance for credit losses on loans	(722,000)	(864,000)	(1,171,000)	(1,297,000)
Home equity \| Real estate
Loans held-for-investment:
Total loan balance	111,609,000	109,579,000
Multi-family
Loans held-for-investment:
Total loan balance	221,767,000	218,856,000
Allowance for credit losses on loans	(2,544,000)	(2,796,000)	(2,751,000)	(2,804,000)
Multi-family \| Real estate
Loans held-for-investment:
Total loan balance	221,767,000	218,856,000
Residential mortgages
Loans held-for-investment:
Total loan balance	391,171,000	416,660,000
Allowance for credit losses on loans	(4,757,000)	(4,132,000)	(918,000)	(943,000)
Residential mortgages \| Real estate
Loans held-for-investment:
Total loan balance	391,171,000	416,660,000
Consumer and other
Loans held-for-investment:
Total loan balance	17,110,000	16,744,000
Allowance for credit losses on loans	(148,000)	(174,000)	$ (303,000)	$ (284,000)
Consumer and other \| Consumer
Loans held-for-investment:
Total loan balance	$ 17,110,000	$ 16,744,000

Loans and Allowance for Credi_4

Loans and Allowance for Credit Losses on Loans - Changes in the Allowance for Loan Losses (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Changes in the Allowance for Loan Losses
Beginning of period balance	$ 43,290,000	$ 44,400,000
Charge-offs	(16,000)	(263,000)
Recoveries	81,000	1,671,000
Net (charge-offs) recoveries	65,000	1,408,000
Provision for (recapture of) credit losses on loans	(567,000)	(1,512,000)
End of period balance	42,788,000	44,296,000
Decrease in reserve for pooled loans	(426,000)
Decrease in the allowance of credit loss	(76,000)
Commercial
Changes in the Allowance for Loan Losses
Beginning of period balance	8,414,000	11,587,000
Charge-offs	(16,000)	(263,000)
Recoveries	54,000	813,000
Net (charge-offs) recoveries	38,000	550,000
Provision for (recapture of) credit losses on loans	(1,651,000)	(537,000)
End of period balance	6,801,000	11,600,000
CRE - owner occupied
Changes in the Allowance for Loan Losses
Beginning of period balance	7,954,000	8,560,000
Recoveries	3,000	4,000
Net (charge-offs) recoveries	3,000	4,000
Provision for (recapture of) credit losses on loans	(1,560,000)	(196,000)
End of period balance	6,397,000	8,368,000
CRE - non-owner occupied
Changes in the Allowance for Loan Losses
Beginning of period balance	17,125,000	16,416,000
Provision for (recapture of) credit losses on loans	2,288,000	15,000
End of period balance	19,413,000	16,431,000
Land and construction
Changes in the Allowance for Loan Losses
Beginning of period balance	1,831,000	2,509,000
Recoveries		816,000
Net (charge-offs) recoveries		816,000
Provision for (recapture of) credit losses on loans	175,000	(571,000)
End of period balance	2,006,000	2,754,000
Home equity
Changes in the Allowance for Loan Losses
Beginning of period balance	864,000	1,297,000
Recoveries	24,000	23,000
Net (charge-offs) recoveries	24,000	23,000
Provision for (recapture of) credit losses on loans	(166,000)	(149,000)
End of period balance	722,000	1,171,000
Multi-family
Changes in the Allowance for Loan Losses
Beginning of period balance	2,796,000	2,804,000
Provision for (recapture of) credit losses on loans	(252,000)	(53,000)
End of period balance	2,544,000	2,751,000
Residential mortgages
Changes in the Allowance for Loan Losses
Beginning of period balance	4,132,000	943,000
Provision for (recapture of) credit losses on loans	625,000	(25,000)
End of period balance	4,757,000	918,000
Consumer and other
Changes in the Allowance for Loan Losses
Beginning of period balance	174,000	284,000
Recoveries		15,000
Net (charge-offs) recoveries		15,000
Provision for (recapture of) credit losses on loans	(26,000)	4,000
End of period balance	$ 148,000	$ 303,000

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	Mar. 31, 2022	Dec. 31, 2021
Nonperforming Loans by Class
Nonaccrual Financing Receivable, no special allowance	$ 2,542	$ 2,432
Nonaccrual Financing Receivable, with special allowance	761	1,028
Loans Over 90 Days Past Due and Still Accruing	527	278
Total	3,830	3,738
Commercial.
Nonperforming Loans by Class
Nonaccrual Financing Receivable, no special allowance	236	94
Nonaccrual Financing Receivable, with special allowance	761	1,028
Loans Over 90 Days Past Due and Still Accruing	527	278
Total	1,524	1,400
CRE - owner occupied \| Real estate
Nonperforming Loans by Class
Nonaccrual Financing Receivable, no special allowance	1,126	1,126
Total	1,126	1,126
Home equity \| Real estate
Nonperforming Loans by Class
Nonaccrual Financing Receivable, no special allowance	73	84
Total	73	84
Multi-family \| Real estate
Nonperforming Loans by Class
Nonaccrual Financing Receivable, no special allowance	1,107	1,128
Total	$ 1,107	$ 1,128

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 ($)	Mar. 31, 2022	Dec. 31, 2021
Aging of Past Due Loans by Class of Loans
Total loan balance	$ 3,026,188,000	$ 3,090,788,000
30-59 Days Past Due
Aging of Past Due Loans by Class of Loans
Loan balance	10,212,000	3,313,000
60-89 Days Past Due
Aging of Past Due Loans by Class of Loans
Loan balance	2,215,000	168,000
90 Days or Greater Past Due
Aging of Past Due Loans by Class of Loans
Loan balance	1,704,000	1,534,000
Past due
Aging of Past Due Loans by Class of Loans
Loan balance	14,131,000	5,015,000
Current
Aging of Past Due Loans by Class of Loans
Loan balance	3,012,057,000	3,085,773,000
Commercial
Aging of Past Due Loans by Class of Loans
Total loan balance	605,446,000	682,834,000
Commercial \| Commercial.
Aging of Past Due Loans by Class of Loans
Total loan balance	605,446,000	682,834,000
Commercial \| Commercial. \| 30-59 Days Past Due
Aging of Past Due Loans by Class of Loans
Loan balance	5,522,000	2,714,000
Commercial \| Commercial. \| 60-89 Days Past Due
Aging of Past Due Loans by Class of Loans
Loan balance	1,508,000	168,000
Commercial \| Commercial. \| 90 Days or Greater Past Due
Aging of Past Due Loans by Class of Loans
Loan balance	578,000	408,000
Commercial \| Commercial. \| Past due
Aging of Past Due Loans by Class of Loans
Loan balance	7,608,000	3,290,000
Commercial \| Commercial. \| Current
Aging of Past Due Loans by Class of Loans
Loan balance	597,838,000	679,544,000
CRE - owner occupied
Aging of Past Due Loans by Class of Loans
Total loan balance	597,542,000	595,934,000
CRE - owner occupied \| Real estate
Aging of Past Due Loans by Class of Loans
Total loan balance	597,542,000	595,934,000
CRE - owner occupied \| Real estate \| 90 Days or Greater Past Due
Aging of Past Due Loans by Class of Loans
Loan balance	1,126,000	1,126,000
CRE - owner occupied \| Real estate \| Past due
Aging of Past Due Loans by Class of Loans
Loan balance	1,126,000	1,126,000
CRE - owner occupied \| Real estate \| Current
Aging of Past Due Loans by Class of Loans
Loan balance	596,416,000	594,808,000
CRE - non-owner occupied
Aging of Past Due Loans by Class of Loans
Total loan balance	928,220,000	902,326,000
CRE - non-owner occupied \| Real estate
Aging of Past Due Loans by Class of Loans
Total loan balance	928,220,000	902,326,000
CRE - non-owner occupied \| Real estate \| 60-89 Days Past Due
Aging of Past Due Loans by Class of Loans
Loan balance	707,000
CRE - non-owner occupied \| Real estate \| Past due
Aging of Past Due Loans by Class of Loans
Loan balance	707,000
CRE - non-owner occupied \| Real estate \| Current
Aging of Past Due Loans by Class of Loans
Loan balance	927,513,000	902,326,000
Land and construction
Aging of Past Due Loans by Class of Loans
Total loan balance	153,323,000	147,855,000
Land and construction \| Real estate
Aging of Past Due Loans by Class of Loans
Total loan balance	153,323,000	147,855,000
Land and construction \| Real estate \| Current
Aging of Past Due Loans by Class of Loans
Loan balance	153,323,000	147,855,000
Home equity
Aging of Past Due Loans by Class of Loans
Total loan balance	111,609,000	109,579,000
Home equity \| Real estate
Aging of Past Due Loans by Class of Loans
Total loan balance	111,609,000	109,579,000
Home equity \| Real estate \| Current
Aging of Past Due Loans by Class of Loans
Loan balance	111,609,000	109,579,000
Multi-family
Aging of Past Due Loans by Class of Loans
Total loan balance	221,767,000	218,856,000
Multi-family \| Real estate
Aging of Past Due Loans by Class of Loans
Total loan balance	221,767,000	218,856,000
Multi-family \| Real estate \| Current
Aging of Past Due Loans by Class of Loans
Loan balance	221,767,000	218,856,000
Residential mortgages
Aging of Past Due Loans by Class of Loans
Total loan balance	391,171,000	416,660,000
Residential mortgages \| Real estate
Aging of Past Due Loans by Class of Loans
Total loan balance	391,171,000	416,660,000
Residential mortgages \| Real estate \| 30-59 Days Past Due
Aging of Past Due Loans by Class of Loans
Loan balance	4,690,000	599,000
Residential mortgages \| Real estate \| Past due
Aging of Past Due Loans by Class of Loans
Loan balance	4,690,000	599,000
Residential mortgages \| Real estate \| Current
Aging of Past Due Loans by Class of Loans
Loan balance	386,481,000	416,061,000
Consumer and other
Aging of Past Due Loans by Class of Loans
Total loan balance	17,110,000	16,744,000
Consumer and other \| Consumer
Aging of Past Due Loans by Class of Loans
Total loan balance	17,110,000	16,744,000
Consumer and other \| Consumer \| Current
Aging of Past Due Loans by Class of Loans
Loan balance	$ 17,110,000	$ 16,744,000

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 ($)	Mar. 31, 2022	Dec. 31, 2021
30 days or greater past due
Aging of Past Due Loans by Class of Loans
Nonaccrual loans	$ 1,362,000	$ 1,258,000
Less than 30 days past due
Aging of Past Due Loans by Class of Loans
Nonaccrual loans	1,941,000	2,202,000
Past due
Aging of Past Due Loans by Class of Loans
Loan balance	$ 14,131,000	$ 5,015,000

Loans and Allowance for Credi_8

Loans and Allowance for Credit Losses on Loans - Credit Quality Indicators (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Loans
2022	$ 244,800	$ 1,359,286
2021	1,160,630	421,591
2020	387,897	244,397
2019	229,273	138,204
2018	120,274	131,061
2017 and Prior	398,550	294,461
Revolving	484,764	501,788
Total loan balance	3,026,188	3,090,788
Balance to report	2,981,276	3,044,036
Loan classified as loss
Loans
Balance to report	0	0
Commercial
Loans
2022	85,491	215,159
2021	92,468	67,141
2020	52,346	15,342
2019	12,358	13,058
2018	11,535	7,856
2017 and Prior	11,470	5,761
Revolving	339,778	358,517
Total loan balance	605,446	682,834
Commercial \| Pass [Member]
Loans
2022	83,467	208,645
2021	90,076	65,257
2020	51,230	15,086
2019	12,145	12,281
2018	10,818	7,311
2017 and Prior	10,799	5,507
Revolving	333,283	349,717
Total loan balance	591,818	663,804
Commercial \| Special Mention [Member]
Loans
2022	2,020	2,210
2021	1,283	512
2020	496	219
2019	213	764
2018	706	243
2017 and Prior	417	204
Revolving	1,888	4,024
Total loan balance	7,023	8,176
Commercial \| Substandard [Member]
Loans
2022	4	3,709
2021	561	930
2020	258
2019		13
2018	11	302
2017 and Prior	167	2
Revolving	4,607	4,776
Total loan balance	5,608	9,732
Commercial \| Substandard-Nonaccrual [Member]
Loans
2022		595
2021	548	442
2020	362	37
2017 and Prior	87	48
Total loan balance	997	1,122
CRE - owner occupied
Loans
2022	41,146	172,057
2021	163,716	144,499
2020	139,060	66,268
2019	59,406	58,494
2018	52,664	31,657
2017 and Prior	128,528	108,473
Revolving	13,022	14,486
Total loan balance	597,542	595,934
CRE - owner occupied \| Pass [Member]
Loans
2022	39,671	170,504
2021	163,716	135,103
2020	125,993	65,596
2019	58,738	57,017
2018	51,196	31,657
2017 and Prior	127,282	107,203
Revolving	13,022	14,486
Total loan balance	579,618	581,566
CRE - owner occupied \| Special Mention [Member]
Loans
2022	568	568
2021		2,254
2020	6,657	672
2019	668
2017 and Prior	347	355
Total loan balance	8,240	3,849
CRE - owner occupied \| Substandard [Member]
Loans
2022	907	985
2021		6,042
2020	5,309
2019		1,477
2018	1,468
2017 and Prior	874	889
Total loan balance	8,558	9,393
CRE - owner occupied \| Substandard-Nonaccrual [Member]
Loans
2021		1,100
2020	1,101
2017 and Prior	25	26
Total loan balance	1,126	1,126
CRE - non-owner occupied
Loans
2022	55,458	374,470
2021	377,417	152,634
2020	139,637	115,170
2019	113,076	45,959
2018	35,540	69,258
2017 and Prior	204,381	142,767
Revolving	2,711	2,068
Total loan balance	928,220	902,326
CRE - non-owner occupied \| Pass [Member]
Loans
2022	55,458	374,470
2021	376,710	141,404
2020	128,498	115,170
2019	113,076	45,959
2018	35,540	68,125
2017 and Prior	197,894	134,454
Revolving	2,711	2,068
Total loan balance	909,887	881,650
CRE - non-owner occupied \| Special Mention [Member]
Loans
2021		5,388
2020	5,341
2018		1,133
2017 and Prior	356	3,816
Total loan balance	5,697	10,337
CRE - non-owner occupied \| Substandard [Member]
Loans
2021	707	5,842
2020	5,798
2017 and Prior	6,131	4,497
Total loan balance	12,636	10,339
Land and construction
Loans
2022	53,912	127,203
2021	79,197	11,401
2020	11,259	4,385
2019	3,925
2017 and Prior	1,289	1,300
Revolving	3,741	3,566
Total loan balance	153,323	147,855
Land and construction \| Pass [Member]
Loans
2022	53,912	125,844
2021	79,197	11,401
2020	11,259	4,385
2019	3,925
2017 and Prior	1,289	1,300
Revolving	3,741	3,566
Total loan balance	153,323	146,496
Land and construction \| Special Mention [Member]
Loans
2022		1,359
Total loan balance		1,359
Home equity
Loans
2021		84
2020	73
2019		46
2018	40
2017 and Prior	143	54
Revolving	111,353	109,395
Total loan balance	111,609	109,579
Home equity \| Pass [Member]
Loans
2019		46
2018	40
Revolving	109,329	106,738
Total loan balance	109,369	106,784
Home equity \| Special Mention [Member]
Loans
Revolving	1,932	1,931
Total loan balance	1,932	1,931
Home equity \| Substandard [Member]
Loans
2017 and Prior	143	54
Revolving	92	726
Total loan balance	235	780
Home equity \| Substandard-Nonaccrual [Member]
Loans
2021		84
2020	73
Total loan balance	73	84
Multi-family
Loans
2022	7,949	109,467
2021	108,939	27,955
2020	27,780	35,127
2019	32,833	16,151
2018	16,062	16,261
2017 and Prior	28,204	13,895
Total loan balance	221,767	218,856
Multi-family \| Pass [Member]
Loans
2022	7,949	102,535
2021	100,952	27,955
2020	27,780	30,820
2019	28,548	16,151
2018	16,062	16,261
2017 and Prior	28,204	13,895
Total loan balance	209,495	207,617
Multi-family \| Special Mention [Member]
Loans
2022		5,804
2021	6,880
2020		4,307
2019	4,285
Total loan balance	11,165	10,111
Multi-family \| Substandard-Nonaccrual [Member]
Loans
2022		1,128
2021	1,107
Total loan balance	1,107	1,128
Residential mortgages
Loans
2022	765	360,424
2021	338,359	17,875
2020	17,742	8,065
2019	7,643	3,070
2018	3,022	6,015
2017 and Prior	23,640	21,211
Total loan balance	391,171	416,660
Residential mortgages \| Pass [Member]
Loans
2022	765	360,424
2021	338,359	17,875
2020	17,742	8,065
2019	7,643	3,070
2018	3,022	6,015
2017 and Prior	23,413	19,967
Total loan balance	390,944	415,416
Residential mortgages \| Special Mention [Member]
Loans
2017 and Prior		1,244
Total loan balance		1,244
Residential mortgages \| Substandard [Member]
Loans
2017 and Prior	227
Total loan balance	227
Consumer and other
Loans
2022	79	506
2021	534	2
2020		40
2019	32	1,426
2018	1,411	14
2017 and Prior	895	1,000
Revolving	14,159	13,756
Total loan balance	17,110	16,744
Consumer and other \| Pass [Member]
Loans
2022	79	491
2021	522	2
2020		40
2019	32	1,426
2018	1,411	14
2017 and Prior	895	1,000
Revolving	14,159	13,756
Total loan balance	17,098	16,729
Consumer and other \| Substandard [Member]
Loans
2022		15
2021	12
Total loan balance	12	15
Risk Grades [Member]
Loans
2022	244,800	1,359,286
2021	1,160,630	421,591
2020	387,897	244,397
2019	229,273	138,204
2018	120,274	131,061
2017 and Prior	398,550	294,461
Revolving	484,764	501,788
Total loan balance	3,026,188	3,090,788
Risk Grades [Member] \| Pass [Member]
Loans
2022	241,301	1,342,913
2021	1,149,532	398,997
2020	362,502	239,162
2019	224,107	135,950
2018	118,089	129,383
2017 and Prior	389,776	283,326
Revolving	476,245	490,331
Total loan balance	2,961,552	3,020,062
Risk Grades [Member] \| Special Mention [Member]
Loans
2022	2,588	9,941
2021	8,163	8,154
2020	12,494	5,198
2019	5,166	764
2018	706	1,376
2017 and Prior	1,120	5,619
Revolving	3,820	5,955
Total loan balance	34,057	37,007
Risk Grades [Member] \| Substandard [Member]
Loans
2022	911	4,709
2021	1,280	12,814
2020	11,365
2019		1,490
2018	1,479	302
2017 and Prior	7,542	5,442
Revolving	4,699	5,502
Total loan balance	27,276	30,259
Risk Grades [Member] \| Substandard-Nonaccrual [Member]
Loans
2022		1,723
2021	1,655	1,626
2020	1,536	37
2017 and Prior	112	74
Total loan balance	$ 3,303	$ 3,460

Loans and Allowance for Credi_9

Loans and Allowance for Credit Losses on Loans - Amortized Cost Basis of Collateral-dependent Loans (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Business Assets
Financing Receivable, Recorded Investment, Past Due [Line Items]
Collateral dependent loans	$ 761,000	$ 1,028,000

Loans and Allowance for Cred_10

Loans and Allowance for Credit Losses on Loans - Troubled Debt Restructurings (Details) - USD ($)	Mar. 31, 2022	Mar. 30, 2022	Dec. 31, 2021
Loans and Allowance for Credit Losses on Loans
Recorded investment of troubled debt restructurings	$ 481,000		$ 500,000
Troubled debt restructurings, nonaccrual loans	355,000		372,000
Troubled debt restructurings, accruing loans	$ 126,000		128,000
Specific reserves		$ 279,000	$ 290,000

Loans and Allowance for Cred_11

Loans and Allowance for Credit Losses on Loans - Troubled Debt Restructurings by Class (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2022loan	Mar. 31, 2021USD ($)loan	Dec. 31, 2021loan
Troubled Debt Restructurings by Class
Number of loans modified as troubled debt restructurings during the period \| loan	0	1	0
Pre-modification Outstanding Recorded Investment		$ 3,000
Post-modification Outstanding Recorded Investment		$ 3,000
Commercial.
Troubled Debt Restructurings by Class
Number of loans modified as troubled debt restructurings during the period \| loan		1
Pre-modification Outstanding Recorded Investment		$ 3,000
Post-modification Outstanding Recorded Investment		$ 3,000

Loans and Allowance for Cred_12

Loans and Allowance for Credit Losses on Loans - Defaults on Troubled Debt Restructurings (Details) - item	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Loans and Allowance for Credit Losses on Loans
Default period contractually past due under modified terms (in days)	30 days
Number of defaults on troubled debt restructurings	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)	3 Months Ended
	Mar. 31, 2022item
Loans and Allowance for Credit Losses on Loans
Number of remaining second deferments	0

Goodwill and Other Intangible_3

Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021
Goodwill
Goodwill	$ 167,631,000	$ 167,631,000	$ 167,631,000
BVF/CSNK
Goodwill
Goodwill acquired	13,044,000
Focus
Goodwill
Goodwill acquired	32,619,000
Tri Valley Bank
Goodwill
Goodwill acquired	13,819,000
United American Bank
Goodwill
Goodwill acquired	24,271,000
Presidio bank
Goodwill
Goodwill acquired	83,878,000
Banking
Goodwill
Goodwill	154,587,000	154,587,000	154,587,000
Factoring
Goodwill
Goodwill	$ 13,044,000	$ 13,044,000	$ 13,044,000

Goodwill and Other Intangible_4

Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Other Intangible Assets
Gross Carrying amount	$ 27,033	$ 27,033
Accumulated Amortization	(14,024)	(13,365)
Total	13,009	13,668
Core deposit
Other Intangible Assets
Gross Carrying amount	25,023	25,023
Accumulated Amortization	(12,593)	(11,982)
Total	12,430	13,041
Below/ (Above) market-value lease
Other Intangible Assets
Gross Carrying amount	110	110
Accumulated Amortization	(22)	(22)
Total	88	88
Customer relationship and brokered relationship
Other Intangible Assets
Gross Carrying amount	1,900	1,900
Accumulated Amortization	(1,409)	(1,361)
Total	$ 491	$ 539

Goodwill and Other Intangible_5

Goodwill and Other Intangible Assets - Estimated Amortization Expense (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Estimated Amortization Expense
2022 remaining	$ 1,976
2023	2,405
2024	2,187
2025	1,813
2026	1,530
2027	1,456
Thereafter	1,642
Total	13,009	$ 13,668
Core deposit
Estimated Amortization Expense
2022 remaining	1,836
2023	2,217
2024	2,023
2025	1,795
2026	1,512
2027	1,438
Thereafter	1,609
Total	12,430	13,041
Customer relationship and brokered relationship
Estimated Amortization Expense
2022 remaining	142
2023	190
2024	159
Total	491	539
Below/ (Above) market-value lease
Estimated Amortization Expense
2022 remaining	(2)
2023	(2)
2024	5
2025	18
2026	18
2027	18
Thereafter	33
Total	$ 88	$ 88

Goodwill and Other Intangible_6

Goodwill and Other Intangible Assets - Impairment of Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
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	Mar. 31, 2022	Dec. 31, 2021
Net deferred tax assets
Net deferred tax assets	$ 28,054	$ 28,757
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	Mar. 31, 2022	Dec. 31, 2021
Income Taxes
Low income housing investments	$ 4,169	$ 4,380
Future commitments	$ 568	$ 568

Income Taxes - Future Commitmen

Income Taxes - Future Commitments of the Low Income Housing Investments (Details) - Low income housing investments	Mar. 31, 2022USD ($)
Future Commitments
2022	$ 55,000
2023 through 2026	$ 513,000

Income Taxes - Components of Lo

Income Taxes - Components of Low Income Housing Investment (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Taxes
Low income housing tax credits	$ 210,000	$ 210,000
Low income housing investment expense	$ 211,000	$ 208,000

Benefit Plans - Defined Benefit

Benefit Plans - Defined Benefit Plans - Components of Pension Cost (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Supplemental Retirement Plan
Components of net periodic benefit cost:
Service cost	$ 87	$ 120
Interest cost	216	190
Amortization of prior service cost		25
Amortization of net actuarial loss	114	136
Net periodic benefit cost	417	471
Defined Benefit Plan, Assets for Plan Benefits	0
Split-Dollar Life Insurance Benefit Plan
Components of net periodic benefit cost:
Amortization of prior transition obligation and actuarial losses	(11)	(1)
Interest cost	62	55	$ 219
Net periodic benefit cost	$ 51	$ 54

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		12 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Change in projected benefit obligation:
Projected benefit obligation at beginning of year	$ 9,244	$ 9,689	$ 9,689
Interest cost	62	$ 55	219
Actuarial loss			(664)
Projected benefit obligation at end of period	$ 9,306		$ 9,244

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	Mar. 31, 2022	Dec. 31, 2021
Amounts Recognized in Accumulated Other Comprehensive Loss
Net actuarial loss	$ 4,633	$ 4,601
Prior transition obligation	858	879
Accumulated other comprehensive loss	$ 5,491	$ 5,480

Fair Value - Financial Assets a

Fair Value - Financial Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	$ 111,217	$ 102,252
Agency mortgage-backed securities
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	89,653	102,252
U.S. Treasury
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	21,564
Recurring basis
Financial Assets and Liabilities Measured on a Recurring Basis
I/O strip receivables	208	221
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
Recurring basis \| Agency mortgage-backed securities
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	89,653	102,252
Recurring basis \| U.S. Treasury
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	21,564
Recurring basis \| 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	21,564
Recurring basis \| Significant Other Observable Inputs (Level 2)
Financial Assets and Liabilities Measured on a Recurring Basis
I/O strip receivables	208	221
Recurring basis \| Significant Other Observable Inputs (Level 2) \| Agency mortgage-backed securities
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	$ 89,653	$ 102,252

Fair Value - Impaired Loans Hel

Fair Value - Impaired Loans Held-for-investment - Additional Disclosures (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Carrying Amounts
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 ($)	Mar. 31, 2022	Dec. 31, 2021
Assets
Securities available-for-sale	$ 111,217,000	$ 102,252,000
Securities held-to-maturity	690,784,000	657,649,000
Federal Home Loan Bank, Federal Reserve Bank stock and other investments, at cost	32,509,000	32,504,000
Liabilities
Subordinated debt	39,987,000	39,925,000
Carrying Amounts
Assets
Cash and cash equivalents	1,217,165,000	1,306,216,000
Securities available-for-sale	111,217,000	102,252,000
Securities held-to-maturity	736,823,000	658,397,000
Loans (including loans held-for-sale), net	2,982,107,000	3,046,403,000
Federal Home Loan Bank, Federal Reserve Bank stock and other investments, at cost	32,509,000	32,504,000
Accrued interest receivable	11,120,000	10,781,000
I/O strips receivables	208,000	221,000
Liabilities
Time deposits	137,203,000	139,834,000
Other deposits	4,552,702,000	4,619,578,000
Subordinated debt	39,987,000	39,925,000
Accrued interest payable	1,005,000	477,000
Balance
Assets
Cash and cash equivalents	1,217,165,000	1,306,216,000
Securities available-for-sale	111,217,000	102,252,000
Securities held-to-maturity	690,784,000	657,649,000
Loans (including loans held-for-sale), net	2,955,391,000	3,063,925,000
Accrued interest receivable	11,120,000	10,781,000
I/O strips receivables	208,000	221,000
Liabilities
Time deposits	137,417,000	140,086,000
Other deposits	4,552,702,000	4,619,578,000
Subordinated debt	39,587,000	40,425,000
Accrued interest payable	1,005,000	477,000
Balance \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets
Cash and cash equivalents	1,217,165,000	1,306,216,000
Securities available-for-sale	21,564,000
Accrued interest receivable	52,000
Balance \| Significant Other Observable Inputs (Level 2)
Assets
Securities available-for-sale	89,653,000	102,252,000
Securities held-to-maturity	690,784,000	657,649,000
Loans (including loans held-for-sale), net	831,000	2,367,000
Accrued interest receivable	1,998,000	1,719,000
I/O strips receivables	208,000	221,000
Liabilities
Time deposits	137,417,000	140,086,000
Other deposits	4,552,702,000	4,619,578,000
Subordinated debt	39,587,000	40,425,000
Accrued interest payable	1,005,000	477,000
Balance \| Significant Unobservable Inputs (Level 3)
Assets
Loans (including loans held-for-sale), net	2,954,560,000	3,061,558,000
Accrued interest receivable	$ 9,070,000	$ 9,062,000

Equity Plan - General Disclosur

Equity Plan - General Disclosures (Details) - shares	3 Months Ended
Equity Plan - General Disclosures (Details) - shares	Mar. 31, 2022	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	1,962,229
Options
Equity Plan
Vesting period	4 years
Expiration term	10 years

Equity Plan - Stock Option Acti

Equity Plan - Stock Option Activity (Details) - Options	3 Months Ended
Equity Plan - Stock Option Activity (Details) - Options	Mar. 31, 2022USD ($)$ / sharesshares
Number of Shares
Outstanding at the beginning of the period (in shares)	2,584,632
Exercised (in shares)	(68,009)
Forfeited or expired (in shares)	(14,969)
Outstanding at the end of the period (in shares)	2,501,654
Vested or expected to vest (in shares)	2,351,555
Exercisable at the end of the period (in shares)	1,987,706
Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share) \| $ / shares	$ 10
Exercised (in dollars per share) \| $ / shares	5.90
Forfeited or expired (in dollars per share) \| $ / shares	11.16
Outstanding at the end of the period (in dollars per share) \| $ / shares	$ 10.10
Additional Information
Weighted Average Remaining Contractual Life - Outstanding at the end of the period (in years)	5 years 3 months 14 days
Weighted Average Remaining Contractual Life - Vested or expected to vest (in years)	5 years 3 months 14 days
Weighted Average Remaining Contractual Life - Exercisable at the end of the period (in years)	4 years 5 months 19 days
Aggregate Intrinsic Value - Outstanding at the end of the period (in dollars) \| $	$ 5,248,759
Aggregate Intrinsic Value - Vested or expected to vest (in dollars) \| $	4,933,833
Aggregate Intrinsic Value - Exercisable at the end of the period (in dollars) \| $	$ 4,903,446

Equity Plan - Information Relat

Equity Plan - Information Related to the Equity Plans for each of the Last Three Years (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Information Related to the Equity Plans
Cash received from option exercise	$ 401	$ 320
Options
Information Related to the Equity Plans
Intrinsic value of options exercised	415,117	167,420
Cash received from option exercise	401,136	319,862
Tax benefit (expense) realized from option exercises	$ 31,971	$ (1,539)

Equity Plan - Unrecognized Comp

Equity Plan - Unrecognized Compensation Cost - Nonvested Awards (Details)	3 Months Ended
	Mar. 31, 2022USD ($)
Options
Unrecognized Compensation Cost
Total unrecognized compensation cost related to nonvested stock options granted	$ 965,000
Expected weighted-average period for recognition of compensation costs related to nonvested stock options	2 years 5 months 15 days
Restricted stock
Unrecognized Compensation Cost
Total unrecognized compensation cost related to nonvested stock options granted	$ 1,638,000
Expected weighted-average period for recognition of compensation costs related to nonvested stock options	1 year 8 months 4 days

Equity Plan - Restricted Stock

Equity Plan - Restricted Stock Activity (Details) - Restricted stock	3 Months Ended
	Mar. 31, 2022$ / sharesshares
Number of Shares
Nonvested shares at the beginning of the period (in shares) \| shares	298,566
Vested (in shares) \| shares	(4,255)
Nonvested shares at the end of the period (in shares) \| shares	294,311
Weighted Average Grant Date Fair Value
Nonvested shares at the beginning of the period (in dollars per share) \| $ / shares	$ 11.03
Vested (in dollars per share) \| $ / shares	11.75
Nonvested shares at the end of the period (in dollars per share) \| $ / shares	$ 12.24

Subordinated Debt (Details)

Subordinated Debt (Details) - USD ($)	May 26, 2017	Mar. 31, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Principal amount	$ 40,000,000
Fixed interest rate (as a percent)	5.25%
Subordinated debt, net of issuance costs		$ 39,987,000	$ 39,925,000
Debt Issuance Costs		$ 13,000
LIBOR
Debt Instrument [Line Items]
Rate of interest added to base rate	3.365%

Capital Requirements - General

Capital Requirements - General Information (Details)	Mar. 27, 2020	Mar. 31, 2022	Dec. 31, 2021
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		2 years
Addition period for transition	3 years
Percentage of adjustment to regulatory capital deferred until phase in period of adoption of CECL Standard			25.00%
Capital conservation buffer (as a percent)		2.50%	2.50%
2022
Capital Requirements
Percentage of impact on allowances for credit losses on delayed adoption of CECL standard		75.00%
2023
Capital Requirements
Percentage of impact on allowances for credit losses on delayed adoption of CECL standard		50.00%
2024
Capital Requirements
Percentage of impact on allowances for credit losses on delayed adoption of CECL standard		25.00%
HBC
Capital Requirements
Capital conservation buffer (as a percent)		2.50%	2.50%

Capital Requirements - Tabular

Capital Requirements - Tabular Disclosure (Details) $ in Thousands	Mar. 31, 2022USD ($)	Dec. 31, 2021USD ($)
Total Capital (to risk-weighted assets)
Actual, Amount	$ 513,272	$ 506,209
Required For Capital Adequacy Purposes, Amount	$ 370,203	$ 369,711
Actual, Ratio (as a percent)	14.6	14.4
Required For Capital Adequacy Purposes, Ratio (as a percent)	10.5	10.5
Tier 1 Capital (to risk-weighted assets)
Actual, Amount	$ 438,203	$ 433,488
Required For Capital Adequacy Purposes, Amount	$ 299,688	$ 299,290
Actual, Ratio (as a percent)	12.4	12.3
Required For Capital Adequacy Purposes, Ratio (as a percent)	8.5	8.5
Common Equity Tier 1 Capital (to risk-weighted assets)
Actual, Amount	$ 438,203	$ 433,488
Required For Capital Adequacy Purposes, Amount	$ 246,802	$ 246,474
Actual, Ratio (as a percent)	12.40%	12.30%
Required For Capital Adequacy Purposes, Ratio (as a percent)	7.00%	7.00%
Tier 1 Capital (to average assets)
Actual, Amount	$ 438,203	$ 433,488
Required For Capital Adequacy Purposes, Amount	$ 210,246	$ 220,193
Actual, Ratio (as a percent)	8.3	7.9
Required For Capital Adequacy Purposes, Ratio (as a percent)	4	4
HBC
Total Capital (to risk-weighted assets)
Actual, Amount	$ 491,349	$ 484,382
To Be Well Capitalized Under Regulatory Requirements, Amount	352,436	351,839
Required For Capital Adequacy Purposes, Amount	$ 370,058	$ 369,431
Actual, Ratio (as a percent)	13.9	13.8
To Be Well Capitalized Under Regulatory Requirements, Ratio (as a percent)	10	10
Required For Capital Adequacy Purposes, Ratio (as a percent)	10.5	10.5
Tier 1 Capital (to risk-weighted assets)
Actual, Amount	$ 456,267	$ 451,586
To Be Well Capitalized Under Regulatory Requirements, Amount	281,949	281,471
Required For Capital Adequacy Purposes, Amount	$ 299,571	$ 299,063
Actual, Ratio (as a percent)	12.9	12.8
To Be Well Capitalized Under Regulatory Requirements, Ratio (as a percent)	8	8
Required For Capital Adequacy Purposes, Ratio (as a percent)	8.5	8.5
Common Equity Tier 1 Capital (to risk-weighted assets)
Actual, Amount	$ 456,267	$ 451,586
To Be Well Capitalized Under Regulatory Requirements, Amount	229,084	228,695
Required For Capital Adequacy Purposes, Amount	$ 246,705	$ 246,287
Actual, Ratio (as a percent)	12.90%	12.80%
To Be Well Capitalized Under Regulatory Requirements, Ratio (as a percent)	6.50%	6.50%
Required For Capital Adequacy Purposes, Ratio (as a percent)	7.00%	7.00%
Tier 1 Capital (to average assets)
Actual, Amount	$ 456,267	$ 451,586
To Be Well Capitalized Under Regulatory Requirements, Amount	262,709	275,109
Required For Capital Adequacy Purposes, Amount	$ 210,167	$ 220,087
Actual, Ratio (as a percent)	8.7	8.2
To Be Well Capitalized Under Regulatory Requirements, Ratio (as a percent)	5	5
Required For Capital Adequacy Purposes, Ratio (as a percent)	4	4

Capital Requirements - Dividend

Capital Requirements - Dividends to Parent (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Cash dividend
Subordinated Debt.	$ 39,987,000	$ 39,925,000
HBC
Cash dividend
Cash dividend available	41,140,000
Dividends paid to parent company	$ 8,000,000

Commitments and Contingencies -

Commitments and Contingencies - Financial Instruments with Off-Balance Sheet Risk (Details)	Oct. 26, 2021USD ($)	Mar. 31, 2022USD ($)	Jun. 30, 2021USD ($)	Mar. 31, 2021	Dec. 31, 2021USD ($)	Oct. 31, 2021item
Commitments and Contingencies
Reserve for legal settlement			$ 4,000,000
Amount of settlement	$ 4,000,000
Legal costs	$ 1,000,000
Number of counts not sustained by court without leave to amend \| item						2
Commitments to extend credit, fixed rate		$ 117,391,000			$ 122,155,000
Commitments to extend credit, variable rate		1,036,970,000			1,028,656,000
Commitment to extend credit, total		$ 1,154,361,000			$ 1,150,811,000
Percentage of unused commitments to outstanding gross loans		38.00%		40.00%	37.00%
Increase (decrease) to the allowance for credit losses on loans		$ (40,000)
Off-balance sheet, credit loss liability increase due to offsetting increase in loss factors in CECL model		775,000			$ 815,000
Unused lines of credit and commitments to make loans
Commitments and Contingencies
Commitments to extend credit, fixed rate		114,333,000			119,071,000
Commitments to extend credit, variable rate		1,027,606,000			1,015,588,000
Commitment to extend credit, total		1,141,939,000			1,134,659,000
Standby letters of credit
Commitments and Contingencies
Commitments to extend credit, fixed rate		3,058,000			3,084,000
Commitments to extend credit, variable rate		9,364,000			13,068,000
Commitment to extend credit, total		$ 12,422,000			$ 16,152,000

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
Revenue Recognition (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Disaggregation of Revenue [Line Items]
Non-interest Income In-scope of Topic 606	$ 612	$ 601
Non-interest Income Out-of-scope of Topic 606	1,848	1,700
Total noninterest income	2,460	2,301
Service charges and fees on deposit accounts
Disaggregation of Revenue [Line Items]
Non-interest Income In-scope of Topic 606	$ 612	$ 601
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

Noninterest Expense (Details)

Noninterest Expense (Details) - USD ($) $ in Thousands	3 Months Ended
Noninterest Expense (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Mar. 31, 2021
Noninterest Expense
Salaries and employee benefits	$ 13,821	$ 13,958
Occupancy and equipment	2,437	2,274
Professional fees	1,080	1,719
Insurance expense	1,043	663
Amortization of intangible assets	659	733
Data processing	651	534
Federal Deposit Insurance Corporation ("FDIC") assessments	479	146
Other	3,082	3,217
Total noninterest expense	$ 23,252	$ 23,244

Leases (Details)

Leases (Details) - USD ($) $ in Thousands	3 Months Ended
Leases (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Mar. 31, 2021
Leases
Lessee, Operating Lease, Option to renew	true
Operating Lease Cost (Cost resulting from lease payments)	$ 1,620	$ 1,671
Operating Lease - Operating Cash Flows (Fixed Payments)	1,210	1,186
Operating Lease - ROU assets	$ 33,669	$ 37,405
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Interest Receivable and Other Assets	Interest Receivable and Other Assets
Operating Lease - Liabilities	$ 33,669	$ 37,405
Operating Lease, Liability, Statement of Financial Position [Extensible List]	Accrued Interest Payable and Other Liabilities	Accrued Interest Payable and Other Liabilities
Weighted Average Lease Term - Operating Leases	7 years 2 months 8 days	8 years 2 months 1 day
Weighted Average Discount Rate - Operating Leases	4.49%	4.49%

Leases - Maturity Analysis (Det

Leases - Maturity Analysis (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Mar. 31, 2021
Operating Lease Payments Due
2022	$ 4,769
2023	5,724
2024	5,341
2025	4,929
2026	4,357
Thereafter	14,654
Total undiscounted cash flows	39,774
Discount on cash flows	(6,105)
Total lease liability	$ 33,669	$ 37,405

Business Segment Information -

Business Segment Information - Business Segments (Details)	3 Months Ended
Business Segment Information - Business Segments (Details)	Mar. 31, 2022segment
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 ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Operating Income
Interest income	$ 39,906,000	$ 36,761,000
Total interest expense	1,685,000	1,803,000
Net interest income	38,221,000	34,958,000
Provision for (recapture of) credit losses on loans	(567,000)	(1,512,000)
Net interest income after provision	38,788,000	36,470,000
Noninterest income	2,460,000	2,301,000
Noninterest expense	23,252,000	23,244,000
Income before income taxes	17,996,000	15,527,000
Income tax expense	5,130,000	4,323,000
Net income	12,866,000	11,204,000
Total assets	5,427,398,000	5,001,390,000	$ 5,499,409,000
Loans, net of deferred fees	3,024,064,000	2,704,707,000	3,087,326,000
Goodwill	167,631,000	167,631,000	167,631,000
Banking
Operating Income
Interest income	37,113,000	34,111,000
Intersegment interest allocations	237,000	211,000
Total interest expense	1,685,000	1,803,000
Net interest income	35,665,000	32,519,000
Provision for (recapture of) credit losses on loans	(539,000)	(1,463,000)
Net interest income after provision	36,204,000	33,982,000
Noninterest income	2,398,000	2,160,000
Noninterest expense	21,767,000	21,897,000
Intersegment expense allocations	114,000	106,000
Income before income taxes	16,949,000	14,351,000
Income tax expense	4,821,000	3,975,000
Net income	12,128,000	10,376,000
Total assets	5,352,709,000	4,933,350,000
Loans, net of deferred fees	2,962,823,000	2,656,178,000
Goodwill	154,587,000	154,587,000	154,587,000
Factoring
Operating Income
Interest income	2,793,000	2,650,000
Intersegment interest allocations	(237,000)	(211,000)
Net interest income	2,556,000	2,439,000
Provision for (recapture of) credit losses on loans	(28,000)	(49,000)
Net interest income after provision	2,584,000	2,488,000
Noninterest income	62,000	141,000
Noninterest expense	1,485,000	1,347,000
Intersegment expense allocations	(114,000)	(106,000)
Income before income taxes	1,047,000	1,176,000
Income tax expense	309,000	348,000
Net income	738,000	828,000
Total assets	74,689,000	68,040,000
Loans, net of deferred fees	61,241,000	48,529,000
Goodwill	$ 13,044,000	$ 13,044,000	$ 13,044,000

Subsequent Events (Details)

Subsequent Events (Details) - $ / shares	Apr. 28, 2022	Mar. 31, 2022	Mar. 31, 2021
Subsequent Event [Line Items]
Quarterly cash dividends declared to holders of common stock		$ 0.13	$ 0.13
Subsequent event
Subsequent Event [Line Items]
Quarterly cash dividends declared to holders of common stock	$ 0.13