Heritage Commerce (HTBK) 10-Q4 Nov 222022 Q3 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2022	Oct. 31, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 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		60,718,994
Document Fiscal Year Focus	2022
Entity Central Index Key	0001053352
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Assets
Cash and due from banks	$ 40,500,000	$ 15,703,000
Other investments and interest-bearing deposits in other financial institutions	641,251,000	1,290,513,000
Total cash and cash equivalents	681,751,000	1,306,216,000
Securities available-for-sale, at fair value	478,534,000	102,252,000
Securities held-to-maturity, at amortized cost, net of allowance for credit losses of $15 at September 30, 2022 and $43 at December 31, 2021 (fair value of $593,610 at September 30, 2022 and $657,649 at December 31, 2021)	703,794,000	658,397,000
Loans held-for-sale - SBA, at lower of cost or fair value, including deferred costs	2,081,000	2,367,000
Loans, net of deferred fees	3,216,473,000	3,087,326,000
Allowance for credit losses on loans	(46,921,000)	(43,290,000)
Loans, net	3,169,552,000	3,044,036,000
Federal Home Loan Bank, Federal Reserve Bank stock and other investments, at cost	32,517,000	32,504,000
Company-owned life insurance	78,456,000	77,589,000
Premises and equipment, net	9,428,000	9,639,000
Goodwill	167,631,000	167,631,000
Other intangible assets	11,692,000	13,668,000
Accrued interest receivable and other assets	95,826,000	85,110,000
Total assets	5,431,262,000	5,499,409,000
Deposits:
Demand, noninterest-bearing	1,883,574,000	1,903,768,000
Demand, interest-bearing	1,154,403,000	1,308,114,000
Savings and money market	1,487,400,000	1,375,825,000
Time deposits - under $250	34,728,000	38,734,000
Time deposits - $250 and over	93,263,000	94,700,000
CDARS - interest-bearing demand, money market and time deposits	29,897,000	38,271,000
Total deposits	4,683,265,000	4,759,412,000
Subordinated debt, net of issuance costs	39,312,000	39,925,000
Accrued interest payable and other liabilities	99,168,000	102,044,000
Total liabilities	4,821,745,000	4,901,381,000
Shareholders' equity:
Preferred stock, no par value; 10,000,000 shares authorized; none issued and outstanding at September 30, 2022 and December 31, 2021
Common stock, no par value; 100,000,000 shares authorized; 60,716,794 shares issued and outstanding at September 30, 2022 and 60,339,837 shares issued and outstanding at December 31, 2021	501,240,000	497,695,000
Retained earnings	133,489,000	111,329,000
Accumulated other comprehensive loss	(25,212,000)	(10,996,000)
Total shareholders' equity	609,517,000	598,028,000
Total liabilities and shareholders' equity	$ 5,431,262,000	$ 5,499,409,000

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Securities held-to-maturity
Allowance for credit losses	$ 15	$ 43
Securities held-to-maturity	$ 593,610	$ 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	60,716,794	60,339,837
Common stock, shares outstanding	60,716,794	60,339,837

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Interest income:
Loans, including fees	$ 38,870	$ 36,207	$ 110,509	$ 103,482
Securities, taxable	5,874	2,320	13,725	5,992
Securities, exempt from Federal tax	260	382	828	1,215
Other investments, interest-bearing deposits in other financial institutions and Federal funds sold	5,170	998	8,574	2,611
Total interest income	50,174	39,907	133,636	113,300
Interest expense:
Deposits	1,595	1,141	3,855	3,552
Subordinated debt	538	584	1,640	1,732
Total interest expense	2,133	1,725	5,495	5,284
Net interest income before provision for credit losses on loans	48,041	38,182	128,141	108,016
Provision for (recapture of) credit losses on loans	1,006	(514)	258	(2,519)
Net interest income after provision for credit losses on loans	47,035	38,696	127,883	110,535
Noninterest income:
Service charges and fees on deposit accounts	1,360	584	2,839	1,844
Increase in cash surrender value of life insurance	484	470	1,444	1,384
Gain on sales of SBA loans	308	594	491	1,227
Servicing income	125	129	370	415
Gain on warrants	32	13	669	11
Termination fees	16	32	61	179
Gain on proceeds from company-owned life insurance		109	27	571
Other	456	477	1,438	1,247
Total noninterest income	2,781	2,408	7,339	6,878
Noninterest expense:
Salaries and employee benefits	14,119	12,461	41,416	38,991
Occupancy and equipment	2,415	2,151	7,129	6,672
Professional fees	1,230	1,211	3,601	4,701
Other	6,135	6,008	18,195	20,486
Total noninterest expense	23,899	21,831	70,341	70,850
Income before income taxes	25,917	19,273	64,881	46,563
Income tax expense	7,848	5,555	19,125	12,828
Net income	$ 18,069	$ 13,718	$ 45,756	$ 33,735
Earnings per common share:
Basic (in dollars per share)	$ 0.30	$ 0.23	$ 0.76	$ 0.56
Diluted (in dollars per share)	$ 0.30	$ 0.23	$ 0.75	$ 0.56
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	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		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 18,069	$ 13,718	$ 45,756	$ 33,735
Other comprehensive income (loss):
Change in net unrealized holding (losses) gains on available-for-sale securities and I/O strips	(13,188)	(366)	(20,317)	(1,855)
Deferred income taxes	3,824	107	5,891	540
Change in net unamortized unrealized gain on securities available-for- sale that were reclassified to securities held-to-maturity		(13)		(39)
Deferred income taxes		4		12
Change in unrealized (losses) gains on securities and I/O strips, net of deferred income taxes	(9,364)	(268)	(14,426)	(1,342)
Change in net pension and other benefit plan liability adjustment	104	132	311	504
Deferred income taxes	(34)	(38)	(101)	(151)
Change in pension and other benefit plan liability, net of deferred income taxes	70	94	210	353
Other comprehensive loss	(9,294)	(174)	(14,216)	(989)
Total comprehensive income	$ 8,775	$ 13,544	$ 31,540	$ 32,746

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, 2020	$ 493,707	94,899	(10,717)	577,889
Balance (in shares) at Dec. 31, 2020	59,917,457
Increase (Decrease) in Shareholders' Equity
Net income				33,735
Other comprehensive loss			(989)	(989)
Balance at Sep. 30, 2021	$ 496,622	91,484	(11,706)	590,118
Balance (in shares) at Sep. 30, 2021	60,266,316
Balance at Mar. 31, 2021	$ 494,617	98,314	(11,268)	581,663
Balance (in shares) at Mar. 31, 2021	59,932,334
Increase (Decrease) in Shareholders' Equity
Net income		8,813		8,813
Other comprehensive loss			(264)	(264)
Issuance of restricted stock awards, net (in shares)	187,325
Amortization of restricted stock awards, net of forfeitures and taxes	$ 438			438
Cash dividend declared		(7,816)		(7,816)
Stock option expense, net of forfeitures and taxes	146			146
Stock options exercised	$ 464			464
Stock options exercised (in shares)	83,107
Balance at Jun. 30, 2021	$ 495,665	99,311	(11,532)	583,444
Balance (in shares) at Jun. 30, 2021	60,202,766
Increase (Decrease) in Shareholders' Equity
Net income		13,718		13,718
Other comprehensive loss			(174)	(174)
Amortization of restricted stock awards, net of forfeitures and taxes	$ 522			522
Cash dividend declared		(7,827)		(7,827)
Stock option expense, net of forfeitures and taxes	150			150
Stock options exercised	$ 285			285
Stock options exercised (in shares)	63,550
Balance at Sep. 30, 2021	$ 496,622	91,484	(11,706)	590,118
Balance (in shares) at Sep. 30, 2021	60,266,316
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
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				45,756
Other comprehensive loss			(14,216)	(14,216)
Balance at Sep. 30, 2022	$ 501,240	133,489	(25,212)	609,517
Balance (in shares) at Sep. 30, 2022	60,716,794
Balance at Mar. 31, 2022	$ 498,763	116,347	(14,054)	601,056
Balance (in shares) at Mar. 31, 2022	60,407,846
Increase (Decrease) in Shareholders' Equity
Net income		14,821		14,821
Other comprehensive loss			(1,864)	(1,864)
Issuance of restricted stock awards, net (in shares)	189,305
Amortization of restricted stock awards, net of forfeitures and taxes	$ 477			477
Cash dividend declared		(7,858)		(7,858)
Stock option expense, net of forfeitures and taxes	144			144
Stock options exercised	$ 448			448
Stock options exercised (in shares)	69,643
Balance at Jun. 30, 2022	$ 499,832	123,310	(15,918)	607,224
Balance (in shares) at Jun. 30, 2022	60,666,794
Increase (Decrease) in Shareholders' Equity
Net income		18,069		18,069
Other comprehensive loss			(9,294)	(9,294)
Issuance of restricted stock awards, net (in shares)	37,000
Amortization of restricted stock awards, net of forfeitures and taxes	$ 1,234			1,234
Cash dividend declared		(7,890)		(7,890)
Stock option expense, net of forfeitures and taxes	153			153
Stock options exercised	$ 21			21
Stock options exercised (in shares)	13,000
Balance at Sep. 30, 2022	$ 501,240	$ 133,489	$ (25,212)	$ 609,517
Balance (in shares) at Sep. 30, 2022	60,716,794

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
Cash dividend declared per share (in dollars per share)	$ 0.13	$ 0.13	$ 0.13	$ 0.13	$ 0.13	$ 0.13

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 45,756	$ 33,735
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of discounts and premiums on securities	290	2,784
Gain on sale of SBA loans	(491)	(1,227)
Proceeds from sale of SBA loans originated for sale	7,689	12,805
SBA loans originated for sale	(7,392)	(13,557)
Provision for (recapture of) credit losses on loans	258	(2,519)
Increase in cash surrender value of life insurance	(1,444)	(1,384)
Depreciation and amortization	850	792
Amortization of other intangible assets	1,976	2,241
Stock option expense, net	446	428
Amortization of restricted stock awards, net	2,229	1,418
Amortization of subordinated debt issuance costs	134	138
Gain on proceeds from company-owned life insurance	(27)	(571)
Effect of changes in:
Accrued interest receivable and other assets	(3,225)	(770)
Accrued interest payable and other liabilities	(4,337)	5,091
Net cash provided by operating activities	42,712	39,404
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of securities available-for-sale	(414,025)
Purchase of securities held-to-maturity	(119,447)	(322,348)
Maturities/paydowns/calls of securities available-for-sale	18,442	111,800
Maturities/paydowns/calls of securities held-to-maturity	72,794	80,847
Purchase of mortgage loans	(148,014)	(181,968)
Net change in loans	22,720	(29,831)
Changes in Federal Home Loan Bank stock and other investments	(13)	1,023
Purchase of premises and equipment	(639)	(154)
Proceeds from redemption of company-owned life insurance	604	1,969
Net cash (used in) investing activities	(567,578)	(338,662)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net change in deposits	(76,147)	811,895
Exercise of stock options	870	1,069
Payment of cash dividends	(23,596)	(23,432)
Redemption of subordinated debt	(40,000)
Issuance of Subordinated debt, net of issuance costs	39,274
Net cash (used-in) provided by financing activities	(99,599)	789,532
Net (decrease) increase in cash and cash equivalents	(624,465)	490,274
Cash and cash equivalents, beginning of period	1,306,216	1,131,073
Cash and cash equivalents, end of period	681,751	1,621,347
Supplemental disclosures of cash flow information:
Interest paid	4,878	4,628
Income taxes paid, net	19,171	$ 12,392
Supplemental schedule of non-cash activity:
Recording of right to use assets in exchange for lease obligations	1,751
Transfer of loans held-for-sale to loan portfolio	$ 480

Basis of Presentation

Basis of Presentation	9 Months Ended
Basis of Presentation	Sep. 30, 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 and nine months ended September 30, 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. 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 - - . entity may - , , 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, however, the impact is not expected to be material.

Earnings Per Share

Earnings Per Share	9 Months Ended
Earnings Per Share	Sep. 30, 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 1,365,172 and 1,056,216 weighted average stock options outstanding for the three months ended September 30, 2022 and 2021, respectively, and 1,365,172 and 1,066,216 weighted average stock options outstanding for the nine months ended September 30, 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 Nine Months Ended September 30, September 30, 2022 2021 2022 2021 (Dollars in thousands, except per share amounts) Net income $ 18,069 $ 13,718 $ 45,756 $ 33,735 Weighted average common shares outstanding for basic earnings per common share 60,686,992 60,220,717 60,541,015 60,078,953 Dilutive potential common shares 436,809 539,472 463,825 556,351 Shares used in computing diluted earnings per common share 61,123,801 60,760,189 61,004,840 60,635,304 Basic earnings per share $ 0.30 $ 0.23 $ 0.76 $ 0.56 Diluted earnings per share $ 0.30 $ 0.23 $ 0.75 $ 0.56

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss) ("AOCI")	9 Months Ended
Accumulated Other Comprehensive Income (Loss) ("AOCI")	Sep. 30, 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 September 30, 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 July 1, 2022, net of taxes $ (2,909) $ — $ (13,009) $ (15,918) Other comprehensive (loss) before reclassification, net of taxes (9,364) — (3) (9,367) Amounts reclassified from other comprehensive income, net of taxes — — 73 73 Net current period other comprehensive income (loss), net of taxes (9,364) — 70 (9,294) Ending balance September 30, 2022, net of taxes $ (12,273) $ — $ (12,939) $ (25,212) Beginning balance July 1, 2021, net of taxes $ 2,873 $ 243 $ (14,648) $ (11,532) Other comprehensive (loss) before reclassification, net of taxes (259) — (1) (260) Amounts reclassified from other comprehensive income (loss), net of taxes — (9) 95 86 Net current period other comprehensive income (loss), net of taxes (259) (9) 94 (174) Ending balance September 30, 2021, net of taxes $ 2,614 $ 234 $ (14,554) $ (11,706) (1) This AOCI component is included in the computation of net periodic benefit cost (see Note 8—Benefit Plans) and includes split-dollar life insurance benefit plan. Nine Months Ended September 30, 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 (14,426) — (9) (14,435) Amounts reclassified from other comprehensive income, net of taxes — — 219 219 Net current period other comprehensive income (loss), net of taxes (14,426) — 210 (14,216) Ending balance September 30, 2022, net of taxes $ (12,273) $ — $ (12,939) $ (25,212) Beginning balance January 1, 2021, net of taxes $ 3,929 $ 261 $ (14,907) $ (10,717) Other comprehensive (loss) before reclassification, net of taxes (1,315) — (3) (1,318) Amounts reclassified from other comprehensive income (loss), net of taxes — (27) 356 329 Net current period other comprehensive income (loss), net of taxes (1,315) (27) 353 (989) Ending balance September 30, 2021, net of taxes $ 2,614 $ 234 $ (14,554) $ (11,706) (1) This AOCI component is included in the computation of net periodic benefit cost (see Note 8—Benefit Plans) and includes split-dollar life insurance benefit plan. Amounts Reclassified from AOCI Three Months Ended September 30, Affected Line Item Where Details About AOCI Components 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) 10 1 Prior service cost and actuarial losses (3) (114) (136) (104) (135) Other noninterest expense 31 40 Income tax benefit (73) (95) Net of tax Total reclassification from AOCI for the period $ (73) $ (86) (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. Amounts Reclassified from AOCI Nine Months Ended September 30, 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 $ — $ 39 Interest income on taxable securities — (12) Income tax expense — 27 Net of tax Amortization of defined benefit pension plan items (1) Prior transition obligation and actuarial losses (2) 31 3 Prior service cost and actuarial losses (3) (342) (508) (311) (505) Other noninterest expense 92 149 Income tax benefit (219) (356) Net of tax Total reclassification from AOCI for the period $ (219) $ (329) (1) This AOCI component is included in the computation of net periodic benefit cost (see Note 8—Benefit Plans). (2) This is related to the split dollar life insurance benefit plan. (3) This is related to the supplemental executive retirement plan.

Securities

Securities	9 Months Ended
Securities	Sep. 30, 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 September 30, 2022 Cost Gains (Losses) Losses Value (Dollars in thousands) Securities available-for-sale: U.S. Treasury $ 415,459 $ 5 $ (10,075) $ — $ 405,389 Agency mortgage-backed securities 80,449 — (7,304) — 73,145 Total $ 495,908 $ 5 $ (17,379) $ — $ 478,534 Gross Gross Estimated Allowance Amortized Unrecognized Unrecognized Fair for Credit September 30, 2022 Cost Gains (Losses) Value Losses (Dollars in thousands) Securities held-to-maturity: Agency mortgage-backed securities $ 665,679 $ — $ (108,074) $ 557,605 $ — Municipals - exempt from Federal tax 38,130 4 (2,129) 36,005 (15) Total $ 703,809 $ 4 $ (110,203) $ 593,610 $ (15) 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 aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position are as follows for the periods indicated: Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized September 30, 2022 Value (Losses) Value (Losses) Value (Losses) (Dollars in thousands) Securities available-for-sale: U.S. Treasury $ 395,856 $ (10,075) $ — $ — $ 395,856 $ (10,075) Agency mortgage-backed securities 73,145 (7,304) — — 73,145 (7,304) Total $ 469,001 $ (17,379) $ — $ — $ 469,001 $ (17,379) Securities held-to-maturity: Agency mortgage-backed securities $ 333,127 $ (57,166) $ 224,478 $ (50,908) $ 557,605 $ (108,074) Municipals — exempt from Federal tax 34,817 (2,129) — — 34,817 (2,129) Total $ 367,944 $ (59,295) $ 224,478 $ (50,908) $ 592,422 $ (110,203) 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 September 30, 2022, the Company held 452 securities (171 available-for-sale and 281 held-to-maturity), of which 444 had fair value below amortized cost. At September 30, 2022, there were $395,856,000 of U.S. Treasury securities available-for-sale, and $73,145,000 of agency mortgage-backed securities available-for-sale, carried with an unrealized loss for less than 12 months. At September 30, 2022, there were $333,127,000 of agency mortgage-backed securities held-to-maturity, and $34,817,000 of municipal securities, carried with an unrealized loss for less than 12 months, and $224,478,000 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 ($76,674,000), and the total unrealized loss for securities carried for 12 months or more was ($50,908,000) at September 30, 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. The amortized cost and estimated fair values of securities as of September 30, 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 3 months through one year $ 26,310 $ 26,155 Due after one through five years 389,149 379,234 Agency mortgage-backed securities 80,449 73,145 Total $ 495,908 $ 478,534 Held-to-maturity Amortized Estimated Cost Fair Value (Dollars in thousands) Due after three months through one year $ 554 $ 550 Due after one through five years 7,407 7,279 Due after five through ten years 27,335 25,514 Due after ten years 2,834 2,662 Agency mortgage-backed securities 665,679 557,605 Total $ 703,809 $ 593,610 Securities with amortized cost of $68,105,000 and $42,473,000 as of September 30, 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 nine months ended September 30, 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 (28) Ending balance September 30, 2022 $ 15 For the nine months ended September 30, 2022, there was a reduction of $28,000 to the allowance for credit losses on the Company’s held-to-maturity municipal investment securities portfolio. This reduction was the result of a reduction in municipal securities amortized balances resulting from regular payments. The bond ratings for the Company’s municipal investment securities at September 30, 2022 were consistent with the ratings at December 31, 2021.

Loans and Allowance for Credit

Loans and Allowance for Credit Losses on Loans	9 Months Ended
Loans and Allowance for Credit Losses on Loans	Sep. 30, 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 $1,614,000 of Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”) loans at September 30, 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 and are acquired. 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: September 30, December 31, 2022 2021 (Dollars in thousands) Loans held-for-investment: Commercial $ 542,829 $ 682,834 Real estate: CRE - owner occupied 612,241 595,934 CRE - non-owner occupied 1,023,405 902,326 Land and construction 167,439 147,855 Home equity 116,489 109,579 Multifamily 229,455 218,856 Residential mortgages 508,839 416,660 Consumer and other 16,620 16,744 Loans 3,217,317 3,090,788 Deferred loan fees, net (844) (3,462) Loans, net of deferred fees 3,216,473 3,087,326 Allowance for credit losses on loans (46,921) (43,290) Loans, net $ 3,169,552 $ 3,044,036 Changes in the allowance for credit losses on loans were as follows for the periods indicated: Three Months Ended September 30, 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 $ 6,602 $ 6,009 $ 21,474 $ 2,498 $ 695 $ 2,824 $ 5,232 $ 156 $ 45,490 Charge-offs (7) — — — — — — — (7) Recoveries 202 4 — — 26 — — 200 432 Net recoveries 195 4 — — 26 — — 200 425 Provision for (recapture of) credit losses on loans 302 (96) (416) (7) (36) 406 1,077 (224) 1,006 End of period balance $ 7,099 $ 5,917 $ 21,058 $ 2,491 $ 685 $ 3,230 $ 6,309 $ 132 $ 46,921 Three Months Ended September 30, 2021 CRE CRE Owner Non-owner Land & Home Multi- Residential Consumer Commercial Occupied Occupied Construction Equity Family Mortgage and Other Total (Dollars in thousands) Beginning of period balance $ 10,857 $ 8,206 $ 16,485 $ 2,136 $ 1,069 $ 2,950 $ 1,968 $ 285 $ 43,956 Charge-offs (65) — — — — — — — (65) Recoveries 263 4 — — 36 — — — 303 Net recoveries 198 4 — — 36 — — — 238 Provision for (recapture of) credit losses on loans (822) 57 665 (112) (94) (61) (97) (50) (514) End of period balance $ 10,233 $ 8,267 $ 17,150 $ 2,024 $ 1,011 $ 2,889 $ 1,871 $ 235 $ 43,680 Nine Months Ended September 30, 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 (378) — — — — — — — (378) Recoveries 335 11 — — 81 — — 3,324 3,751 Net recoveries (43) 11 — — 81 — — 3,324 3,373 Provision for (recapture of) credit losses on loans (1,272) (2,048) 3,933 660 (260) 434 2,177 (3,366) 258 End of period balance $ 7,099 $ 5,917 $ 21,058 $ 2,491 $ 685 $ 3,230 $ 6,309 $ 132 $ 46,921 Nine Months Ended September 30, 2021 CRE CRE Owner Non-owner Land & Home Multi- Residential Consumer Commercial Occupied Occupied Construction Equity Family Mortgage and Other Total (Dollars in thousands) Beginning of period balance $ 11,587 $ 8,560 $ 16,416 $ 2,509 $ 1,297 $ 2,804 $ 943 $ 284 $ 44,400 Charge-offs (433) — — — — — — — (433) Recoveries 1,191 12 — 884 75 — — 70 2,232 Net (charge-offs) recoveries 758 12 — 884 75 — — 70 1,799 Provision for (recapture of) credit losses on loans (2,112) (305) 734 (1,369) (361) 85 928 (119) (2,519) End of period balance $ 10,233 $ 8,267 $ 17,150 $ 2,024 $ 1,011 $ 2,889 $ 1,871 $ 235 $ 43,680 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: September 30, 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 $ 137 $ 354 $ 493 $ 984 Real estate: Home equity — — 52 52 Total $ 137 $ 354 $ 545 $ 1,036 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: September 30, 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 $ 5,357 $ 1,983 $ 585 $ 7,925 $ 534,904 $ 542,829 Real estate: CRE - Owner Occupied — — — — 612,241 612,241 CRE - Non-Owner Occupied 1,336 — — 1,336 1,022,069 1,023,405 Land and construction — — — — 167,439 167,439 Home equity — — — — 116,489 116,489 Multifamily — — — — 229,455 229,455 Residential mortgages — 725 — 725 508,114 508,839 Consumer and other — 125 — 125 16,495 16,620 Total $ 6,693 $ 2,833 $ 585 $ 10,111 $ 3,207,206 $ 3,217,317 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 $10,111,000 and $5,015,000 at September 30, 2022 and December 31, 2021, respectively, of which $125,000 and $1,258,000 were on nonaccrual, at September 30, 2022 and December 31, 2021, respectively. At September 30, 2022, there were also $366,000 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 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 Loans may be reviewed at any time throughout a loan’s duration. If new information is provided, a new risk assessment may be performed if warranted. The following tables present term loans amortized cost by vintage and loan grade classification, and revolving loans amortized cost by loan grade classification at September 30, 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 September 30, 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 September 30, 2022 Amortized 2017 and Cost 09/30/2022 12/31/2021 12/31/2020 12/31/2019 12/31/2018 Prior Basis Total (Dollars in thousands) Commercial: Pass $ 107,182 $ 39,653 $ 41,903 $ 8,108 $ 7,675 $ 8,109 $ 283,912 $ 496,542 Special Mention 3,020 7,723 470 200 364 177 18,912 30,866 Substandard 74 577 28 - 8 60 14,183 14,930 Substandard-Nonaccrual - 382 32 - - 77 - 491 Total 110,276 48,335 42,433 8,308 8,047 8,423 317,007 542,829 CRE - Owner Occupied: Pass 107,996 158,793 125,913 53,744 46,652 103,077 7,721 603,896 Special Mention - 2,044 2,010 - - 399 - 4,453 Substandard 743 - 3,136 - - 13 - 3,892 Substandard-Nonaccrual - - - - - - - - Total 108,739 160,837 131,059 53,744 46,652 103,489 7,721 612,241 CRE - Non-Owner Occupied: Pass 256,054 352,789 120,090 107,017 15,231 160,615 2,897 1,014,693 Special Mention - - - - - - - - Substandard - - 2,687 - - 6,025 - 8,712 Substandard-Nonaccrual - - - - - - - - Total 256,054 352,789 122,777 107,017 15,231 166,640 2,897 1,023,405 Land and construction: Pass 105,233 52,120 8,046 2,040 - - - 167,439 Special Mention - - - - - - - - Substandard - - - - - - - - Substandard-Nonaccrual - - - - - - - - Total 105,233 52,120 8,046 2,040 - - - 167,439 Home equity: Pass - - - - - - 116,060 116,060 Special Mention - 98 - - - - - 98 Substandard - - 55 - - 144 132 331 Substandard-Nonaccrual - - - - - - - Total - 98 55 - - 144 116,192 116,489 Multifamily: Pass 30,763 105,073 27,439 30,435 15,280 20,395 70 229,455 Special Mention - - - - - - - - Substandard - - - - - - - - Substandard-Nonaccrual - - - - - - - - Total 30,763 105,073 27,439 30,435 15,280 20,395 70 229,455 Residential mortgage: Pass 160,695 300,323 12,553 6,720 2,889 19,769 - 502,949 Special Mention 2,393 - 2,556 - - 725 - 5,674 Substandard - - - - - 216 - 216 Substandard-Nonaccrual - - - - - - - - Total 163,088 300,323 15,109 6,720 2,889 20,710 - 508,839 Consumer and other: Pass 429 504 - 15 1,379 848 13,320 16,495 Special Mention - - - - - - 125 125 Substandard - - - - - - - - Substandard-Nonaccrual - - - - - - - - Total 429 504 - 15 1,379 848 13,445 16,620 Total loans $ 774,582 $ 1,020,079 $ 346,918 $ 208,279 $ 89,478 $ 320,649 $ 457,332 $ 3,217,317 Risk Grades: Pass $ 768,352 $ 1,009,255 $ 335,944 $ 208,079 $ 89,106 $ 312,813 $ 423,980 $ 3,147,529 Special Mention 5,413 9,865 5,036 200 364 1,301 19,037 41,216 Substandard 817 577 5,906 - 8 6,458 14,315 28,081 Substandard-Nonaccrual - 382 32 - - 77 - 491 Grand Total $ 774,582 $ 1,020,079 $ 346,918 $ 208,279 $ 89,478 $ 320,649 $ 457,332 $ 3,217,317 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 $354,000 and $1,028,000 at September 30, 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 September 30, 2022 was $52,000 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. There were no specific reserves established with respect to these loans as of September 30, 2022, and approximately $290,000 in specific reserves were established with respect to these loans as of December 31, 2021. There were no loans modified as a troubled debt restructuring during the nine months ended September 30, 2022. There was The following table presents loans by class modified as troubled debt restructurings for the period indicated: During the Nine Months Ended September 30, 2021 Pre-modification Post-modification Number Outstanding

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	9 Months Ended
Goodwill and Other Intangible Assets	Sep. 30, 2022
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets	6) Goodwill and Other Intangible Assets Goodwill At September 30, 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 impairment test is required. The quantitative assessment identifies if a reporting unit fair value is less than its carrying value. If it is, then the Company will recognize goodwill impairment equal to the difference between the carrying amount of the reporting unit and its fair value, not to exceed the carrying amount of goodwill. 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: September 30, 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: September 30, 2022 Gross Remaining Carrying Accumulated Carrying Amount Amortization Amount (Dollars in thousands) Core deposit intangibles $ 25,023 $ (13,817) $ 11,206 Customer relationship and brokered relationship intangibles 1,900 (1,503) 397 Below market leases 110 (21) 89 Total $ 27,033 $ (15,341) $ 11,692 December 31, 2021 Gross Remaining Carrying Accumulated Carrying Amount Amortization Amount (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 September 30, 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 $ 612 48 $ (1) $ 659 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 $ 11,206 $ 397 $ 89 $ 11,692 Impairment testing of the intangible assets is performed at the individual asset level. Impairment exists if the carrying amount of the asset is not recoverable and exceeds its fair value at the date of the impairment test. For intangible assets, estimates of expected future cash flows (cash inflows less cash outflows) that are directly associated with an intangible asset are used to determine the fair value of that asset. Management makes certain estimates and assumptions in determining the expected future cash flows from core deposit and customer relationship intangibles including account attrition, expected lives, discount rates, interest rates, servicing costs and other factors. Significant changes in these estimates and assumptions could adversely impact the valuation of these intangible assets. If an impairment loss exists, the carrying amount of the intangible asset is adjusted to a new cost basis. The new cost basis is then amortized over the remaining useful life of the asset. Based on its assessment, management concluded that there was no impairment of intangible assets at September 30, 2022 and December 31, 2021.

Income Taxes

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 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 $33,021,000 and $28,757,000, at September 30, 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 September 30, 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: September 30, December 31, 2022 2021 (Dollars in thousands) Low income housing investments $ 3,748 $ 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 September 30, 2022 and 2021, and low income housing investment expense of $211,000 and $209,000 , respectively. For tax purposes, the Company had low income housing tax credits of

Benefit Plans

Benefit Plans	9 Months Ended
Benefit Plans	Sep. 30, 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 Nine Months Ended September 30, September 30, 2022 2021 2022 2021 (Dollars in thousands) Components of net periodic benefit cost: Service cost $ 87 $ 120 $ 261 $ 360 Interest cost 216 190 648 570 Amortization of prior service cost — — — 100 Amortization of net actuarial loss 114 136 342 408 Net periodic benefit cost $ 417 $ 446 $ 1,251 $ 1,438 The components of net periodic benefit cost other than the service cost component are included in the line item “other noninterest expense” in the Consolidated Statements of Income. Split-Dollar Life Insurance Benefit Plan The Company maintains life insurance policies for some current and former directors and officers that are subject to split-dollar life insurance agreements. The following table sets forth the funded status of the split-dollar life insurance benefits for the periods indicated: September 30, December 31, 2022 2021 (Dollars in thousands) Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 9,244 $ 9,689 Interest cost 185 219 Actuarial loss — (664) Projected benefit obligation at end of period $ 9,429 $ 9,244 September 30, December 31, 2022 2021 (Dollars in thousands) Net actuarial loss $ 4,699 $ 4,601 Prior transition obligation 812 879 Accumulated other comprehensive loss $ 5,511 $ 5,480 Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 (Dollars in thousands) Amortization of prior transition obligation and actuarial losses $ (10) $ (1) $ (31) $ (3) Interest cost 62 54 185 164 Net periodic benefit cost $ 52 $ 53 $ 154 $ 161

Fair Value

Fair Value	9 Months Ended
Fair Value	Sep. 30, 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 September 30, 2022 Available-for-sale securities: U.S. Treasury $ 405,389 $ 405,389 $ — $ — Agency mortgage-backed securities 73,145 — 73,145 — I/O strip receivables 171 — 171 — 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 September 30, 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 September 30, 2022 and December 31, 2021, there were The carrying amounts and estimated fair values of financial instruments at September 30, 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 $ 681,751 $ 681,751 $ — $ — $ 681,751 Securities available-for-sale 478,534 405,389 73,145 — 478,534 Securities held-to-maturity, net 703,794 — 593,610 — 593,610 Loans (including loans held-for-sale), net 3,171,633 — 2,081 3,022,893 3,024,974 FHLB stock, FRB stock, and other investments 32,517 — — — N/A Accrued interest receivable 14,348 1,683 2,334 10,331 14,348 I/O strips receivables 171 — 171 — 171 Liabilities: Time deposits $ 131,460 $ — $ 131,643 $ — $ 131,643 Other deposits 4,551,805 — 4,551,805 — 4,551,805 Subordinated debt 39,312 — 36,945 — 36,945 Accrued interest payable 960 — 960 — 960 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, net 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	9 Months Ended
Equity Plan	Sep. 30, 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. For the nine months ended September 30, 2022, the Company granted 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 Granted 372,000 $ 11.03 Exercised (150,652) $ 5.77 Forfeited or expired (91,175) $ 12.26 Outstanding at September 30, 2022 2,714,805 $ 10.30 5.53 $ 4,998,498 Vested or expected to vest 2,551,917 5.53 $ 4,698,588 Exercisable at September 30, 2022 2,011,447 4.39 $ 4,636,786 Information related to the equity plans for the periods indicated: Nine Months Ended September 30, 2022 2021 Intrinsic value of options exercised $ 719,946 $ 1,103,925 Cash received from option exercise $ 869,950 $ 1,069,391 Tax benefit (expense) realized from option exercises $ 53,552 $ 58,208 Weighted average fair value of options granted $ 2.18 $ 2.32 As of September 30, 2022, there was $1,422,000 of total unrecognized compensation cost related to nonvested stock options granted under the equity plans. That cost is expected to be recognized over a weighted-average period of approximately 2.79 years. 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 Granted 238,811 $ 11.16 Vested (252,081) $ 11.81 Forfeited or expired (12,506) $ 10.93 Nonvested shares at September 30, 2022 272,790 $ 11.05 As of September 30, 2022, there was $2,456,000 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 2.04 years.

Subordinated Debt

Subordinated Debt	9 Months Ended
Subordinated Debt	Sep. 30, 2022
Subordinated Debt
Subordinated Debt	11) Subordinated Debt fixed-to-floating rate subordinated notes due May 15, 2032 (“Sub Debt due 2032”). The Company used the net proceeds of the Sub Debt due 2032 for general corporate purposes, including the repayment on June 1, 2022 of the Company’s fixed-to-floating rate subordinated notes due June 1, 2027 (“Sub Debt due 2027”). The Sub Debt due 2032, net of unamortized issuance costs of

Capital Requirements

Capital Requirements	9 Months Ended
Capital Requirements	Sep. 30, 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 September 30, 2022. There are no conditions or events since September 30, 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 September 30, 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 September 30, 2022 Total Capital $ 538,072 14.5 % $ 388,764 10.5 % (to risk-weighted assets) Tier 1 Capital $ 459,504 12.4 % $ 314,714 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 459,504 12.4 % $ 259,176 7.0 % (to risk-weighted assets) Tier 1 Capital $ 459,504 8.7 % $ 211,506 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 September 30, 2022 Total Capital $ 516,460 14.0 % $ 370,032 10.0 % $ 388,534 10.5 % (to risk-weighted assets) Tier 1 Capital $ 477,203 12.9 % $ 296,026 8.0 % $ 314,527 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 477,203 12.9 % $ 240,521 6.5 % $ 259,022 7.0 % (to risk-weighted assets) Tier 1 Capital $ 477,203 9.0 % $ 264,272 5.0 % $ 211,417 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 $39,312,000 at September 30, 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 September 30, 2022, HBC would not be required to obtain regulatory approval, and the amount available for cash dividends is $25,140,000 . HBC distributed to HCC dividends of

Commitments and Loss Contingenc

Commitments and Loss Contingencies	9 Months Ended
Commitments and Loss Contingencies	Sep. 30, 2022
Commitments and Loss Contingencies
Commitments and Loss Contingencies	13) Commitments and Loss Contingencies Loss Contingencies Within the ordinary course of our business, we are subject to private lawsuits, government audits, administrative proceedings and other claims. A number of these claims may exist at any given time, and some of the claims may be pled as class actions. We could be affected by adverse publicity and litigation costs resulting from such allegations, regardless of whether they are valid or whether we are legally determined to be liable. A summary of proceedings outstanding at September 30, 2022 follows: DC Solar Related: ● 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 was denied. We intend to vigorously defend this action. ● 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. Employee Related: ● 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 a third former and a then-current bank employee alleging the same claims. The third former employee/claimant is being added as a plaintiff to the previously filed class/PAGA action. We intend to vigorously defend this action. ● In October 2021 the third employee/claimant above referenced 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 this action. 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 $1,163,219,000 at September 30, 2022, and $1,150,811,000 at December 31, 2021. Unused commitments represented 36% outstanding gross loans at September 30, 2022, 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: September 30, 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 $ 102,770 $ 1,049,501 $ 1,152,271 $ 119,071 $ 1,015,588 $ 1,134,659 Standby letters of credit 3,942 7,006 10,948 3,084 13,068 16,152 $ 106,712 $ 1,056,507 $ 1,163,219 $ 122,155 $ 1,028,656 $ 1,150,811 For the nine months ended September 30, 2022, there was an increase of $2,000 to the allowance for credit losses on the Company’s off-balance sheet credit exposures. The increase in the allowance for credit losses for off-balance sheet credit exposures in the first nine months of 2022 was driven by higher loan committments. The allowance for credit losses on the Company’s off-balance sheet credit exposures was $817,000 at September 30, 2022 and $815,000 at December 31, 2021.

Revenue Recognition

Revenue Recognition	9 Months Ended
Revenue Recognition	Sep. 30, 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 of no more than six months to attempt a direct sale of the property. We generally recognize the sale, and any associated gain or loss, of a real estate property when control of the property transfers. Any gains or losses from the sale are recorded to noninterest income/expense. The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the periods indicated: Three Months Ended September 30, 2022 2021 (Dollars in thousands) Noninterest Income In-scope of Topic 606: Service charges and fees on deposit accounts $ 1,360 $ 584 Total noninterest income in-scope of Topic 606 1,360 584 Noninterest Income Out-of-scope of Topic 606 1,421 1,824 Total noninterest income $ 2,781 $ 2,408 Nine Months Ended September 30, 2022 2021 (Dollars in thousands) Noninterest Income In-scope of Topic 606: Service charges and fees on deposit accounts $ 2,839 $ 1,844 Total noninterest income in-scope of Topic 606 2,839 1,844 Noninterest Income Out-of-scope of Topic 606 4,500 5,034 Total noninterest income $ 7,339 $ 6,878

Noninterest Expense

Noninterest Expense	9 Months Ended
Noninterest Expense	Sep. 30, 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 Nine Months Ended September 30, September 30, 2022 2021 2022 2021 (Dollars in thousands) Salaries and employee benefits $ 14,119 $ 12,461 $ 41,416 $ 38,991 Occupancy and equipment 2,415 2,151 7,129 6,672 Insurance expense 1,361 949 3,447 2,273 Professional fees 1,230 1,211 3,601 4,701 Amortization of intangible assets 659 754 1,976 2,241 Data processing 562 507 1,894 1,624 Reserve for litigation — 500 — 4,500 Other 3,553 3,298 10,878 9,848 Total noninterest expense $ 23,899 $ 21,831 $ 70,341 $ 70,850

Leases

Leases	9 Months Ended
Leases	Sep. 30, 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 Nine Months Ended September 30, September 30, 2022 2021 2022 2021 (Dollars in thousands) Operating Lease Cost (Cost resulting from lease payments) $ 1,691 $ 1,621 $ 4,931 $ 4,913 Operating Lease - Operating Cash Flows (Fixed Payments) $ 1,252 $ 1,432 $ 3,697 $ 3,837 Operating Lease - ROU assets $ 32,943 $ 35,707 $ 32,943 $ 35,707 Operating Lease - Liabilities $ 32,943 $ 35,707 $ 32,943 $ 35,707 Weighted Average Lease Term - Operating Leases 6.86 yrs 7.59 yrs 6.86 yrs 7.59 yrs Weighted Average Discount Rate - Operating Leases 4.44% 4.48% 4.44% 4.48% The following maturity analysis shows the undiscounted cash flows due on the Company’s operating lease liabilities as of September 30, 2022: (Dollars in thousands) 2022 remaining $ 1,562 2023 5,964 2024 5,636 2025 5,233 2026 4,671 Thereafter 15,479 Total undiscounted cash flows 38,545 Discount on cash flows (5,602) Total lease liability $ 32,943

Business Segment Information

Business Segment Information	9 Months Ended
Business Segment Information	Sep. 30, 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 September 30, 2022 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 46,973 $ 3,201 $ 50,174 Intersegment interest allocations 329 (329) — Total interest expense 2,133 — 2,133 Net interest income 45,169 2,872 48,041 Provision for (recapture of) credit losses on loans 1,126 (120) 1,006 Net interest income after provision 44,043 2,992 47,035 Noninterest income 2,677 104 2,781 Noninterest expense 22,216 1,683 23,899 Intersegment expense allocations 128 (128) — Income before income taxes 24,632 1,285 25,917 Income tax expense 7,468 380 7,848 Net income $ 17,164 $ 905 $ 18,069 Total assets $ 5,355,212 $ 76,050 $ 5,431,262 Loans, net of deferred fees $ 3,155,923 $ 60,550 $ 3,216,473 Goodwill $ 154,587 $ 13,044 $ 167,631 (1) Includes the holding company’s results of operations Three Months Ended September 30, 2021 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 37,093 $ 2,814 $ 39,907 Intersegment interest allocations 219 (219) — Total interest expense 1,725 — 1,725 Net interest income 35,587 2,595 38,182 Provision (recapture) for credit losses on loans (588) 74 (514) Net interest income after provision 36,175 2,521 38,696 Noninterest income 2,313 95 2,408 Noninterest expense 20,428 1,403 21,831 Intersegment expense allocations 69 (69) — Income before income taxes 18,129 1,144 19,273 Income tax expense 5,217 338 5,555 Net income $ 12,912 $ 806 $ 13,718 Total assets $ 5,392,948 $ 70,054 $ 5,463,002 Loans, net of deferred fees $ 2,776,114 $ 56,745 $ 2,832,859 Goodwill $ 154,587 $ 13,044 $ 167,631 (1) Includes the holding company’s results of operations Nine Months Ended September 30, 2022 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 124,513 $ 9,123 $ 133,636 Intersegment interest allocations 887 (887) — Total interest expense 5,495 — 5,495 Net interest income 119,905 8,236 128,141 Provision for (recapture of) credit losses on loans 259 (1) 258 Net interest income after provision 119,646 8,237 127,883 Noninterest income 7,049 290 7,339 Noninterest expense 65,542 4,799 70,341 Intersegment expense allocations 370 (370) — Income before income taxes 61,523 3,358 64,881 Income tax expense 18,132 993 19,125 Net income $ 43,391 $ 2,365 $ 45,756 Total assets $ 5,355,212 $ 76,050 $ 5,431,262 Loans, net of deferred fees $ 3,155,923 $ 60,550 $ 3,216,473 Goodwill $ 154,587 $ 13,044 $ 167,631 (1) Includes the holding company’s results of operations Nine Months Ended September 30, 2021 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 105,064 $ 8,236 $ 113,300 Intersegment interest allocations 632 (632) — Total interest expense 5,284 — 5,284 Net interest income 100,412 7,604 108,016 Provision (recapture) for credit losses on loans (2,537) 18 (2,519) Net interest income after provision 102,949 7,586 110,535 Noninterest income 6,522 356 6,878 Noninterest expense 66,656 4,194 70,850 Intersegment expense allocations 302 (302) — Income before income taxes 43,117 3,446 46,563 Income tax expense 11,809 1,019 12,828 Net income $ 31,308 $ 2,427 $ 33,735 Total assets $ 5,392,948 $ 70,054 $ 5,463,002 Loans, net of deferred fees $ 2,776,114 $ 56,745 $ 2,832,859 Goodwill $ 154,587 $ 13,044 $ 167,631 (1) Includes the holding company’s results of operations

Subsequent Events

Subsequent Events	9 Months Ended
Subsequent Events	Sep. 30, 2022
Subsequent Events
Subsequent Events	18) Subsequent Events On October 27, 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 November 22, 2022, to shareholders of record at the close of the business day on November 8, 2022.

Basis of Presentation (Policies

Basis of Presentation (Policies)	9 Months Ended
Basis of Presentation (Policies)	Sep. 30, 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 and nine months ended September 30, 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.
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 - - . entity may - , , 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, however, the impact is not expected to be material.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
Earnings Per Share (Tables)	Sep. 30, 2022
Earnings Per Share
Schedule of reconciliation of factors used in computing basic and diluted earnings per common share	Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 (Dollars in thousands, except per share amounts) Net income $ 18,069 $ 13,718 $ 45,756 $ 33,735 Weighted average common shares outstanding for basic earnings per common share 60,686,992 60,220,717 60,541,015 60,078,953 Dilutive potential common shares 436,809 539,472 463,825 556,351 Shares used in computing diluted earnings per common share 61,123,801 60,760,189 61,004,840 60,635,304 Basic earnings per share $ 0.30 $ 0.23 $ 0.76 $ 0.56 Diluted earnings per share $ 0.30 $ 0.23 $ 0.75 $ 0.56

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income ("AOCI") (Tables)	9 Months Ended
Accumulated Other Comprehensive Income ("AOCI") (Tables)	Sep. 30, 2022
Accumulated Other Comprehensive Income ("AOCI")
Schedule of changes in AOCI by component	Three Months Ended September 30, 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 July 1, 2022, net of taxes $ (2,909) $ — $ (13,009) $ (15,918) Other comprehensive (loss) before reclassification, net of taxes (9,364) — (3) (9,367) Amounts reclassified from other comprehensive income, net of taxes — — 73 73 Net current period other comprehensive income (loss), net of taxes (9,364) — 70 (9,294) Ending balance September 30, 2022, net of taxes $ (12,273) $ — $ (12,939) $ (25,212) Beginning balance July 1, 2021, net of taxes $ 2,873 $ 243 $ (14,648) $ (11,532) Other comprehensive (loss) before reclassification, net of taxes (259) — (1) (260) Amounts reclassified from other comprehensive income (loss), net of taxes — (9) 95 86 Net current period other comprehensive income (loss), net of taxes (259) (9) 94 (174) Ending balance September 30, 2021, net of taxes $ 2,614 $ 234 $ (14,554) $ (11,706) (1) This AOCI component is included in the computation of net periodic benefit cost (see Note 8—Benefit Plans) and includes split-dollar life insurance benefit plan. Nine Months Ended September 30, 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 (14,426) — (9) (14,435) Amounts reclassified from other comprehensive income, net of taxes — — 219 219 Net current period other comprehensive income (loss), net of taxes (14,426) — 210 (14,216) Ending balance September 30, 2022, net of taxes $ (12,273) $ — $ (12,939) $ (25,212) Beginning balance January 1, 2021, net of taxes $ 3,929 $ 261 $ (14,907) $ (10,717) Other comprehensive (loss) before reclassification, net of taxes (1,315) — (3) (1,318) Amounts reclassified from other comprehensive income (loss), net of taxes — (27) 356 329 Net current period other comprehensive income (loss), net of taxes (1,315) (27) 353 (989) Ending balance September 30, 2021, net of taxes $ 2,614 $ 234 $ (14,554) $ (11,706) (1) This AOCI component is included in the computation of net periodic benefit cost (see Note 8—Benefit Plans) and includes split-dollar life insurance benefit plan.
Schedule of reclassifications out of AOCI into net income	Amounts Reclassified from AOCI Three Months Ended September 30, Affected Line Item Where Details About AOCI Components 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) 10 1 Prior service cost and actuarial losses (3) (114) (136) (104) (135) Other noninterest expense 31 40 Income tax benefit (73) (95) Net of tax Total reclassification from AOCI for the period $ (73) $ (86) (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. Amounts Reclassified from AOCI Nine Months Ended September 30, 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 $ — $ 39 Interest income on taxable securities — (12) Income tax expense — 27 Net of tax Amortization of defined benefit pension plan items (1) Prior transition obligation and actuarial losses (2) 31 3 Prior service cost and actuarial losses (3) (342) (508) (311) (505) Other noninterest expense 92 149 Income tax benefit (219) (356) Net of tax Total reclassification from AOCI for the period $ (219) $ (329) (1) This AOCI component is included in the computation of net periodic benefit cost (see Note 8—Benefit Plans). (2) This is related to the split dollar life insurance benefit plan. (3) This is related to the supplemental executive retirement plan.

Securities (Tables)

Securities (Tables)	9 Months Ended
Securities (Tables)	Sep. 30, 2022
Securities
Schedule of amortized cost and estimated fair value of securities	Gross Gross Allowance Estimated Amortized Unrealized Unrealized for Credit Fair September 30, 2022 Cost Gains (Losses) Losses Value (Dollars in thousands) Securities available-for-sale: U.S. Treasury $ 415,459 $ 5 $ (10,075) $ — $ 405,389 Agency mortgage-backed securities 80,449 — (7,304) — 73,145 Total $ 495,908 $ 5 $ (17,379) $ — $ 478,534 Gross Gross Estimated Allowance Amortized Unrecognized Unrecognized Fair for Credit September 30, 2022 Cost Gains (Losses) Value Losses (Dollars in thousands) Securities held-to-maturity: Agency mortgage-backed securities $ 665,679 $ — $ (108,074) $ 557,605 $ — Municipals - exempt from Federal tax 38,130 4 (2,129) 36,005 (15) Total $ 703,809 $ 4 $ (110,203) $ 593,610 $ (15) 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 September 30, 2022 Value (Losses) Value (Losses) Value (Losses) (Dollars in thousands) Securities available-for-sale: U.S. Treasury $ 395,856 $ (10,075) $ — $ — $ 395,856 $ (10,075) Agency mortgage-backed securities 73,145 (7,304) — — 73,145 (7,304) Total $ 469,001 $ (17,379) $ — $ — $ 469,001 $ (17,379) Securities held-to-maturity: Agency mortgage-backed securities $ 333,127 $ (57,166) $ 224,478 $ (50,908) $ 557,605 $ (108,074) Municipals — exempt from Federal tax 34,817 (2,129) — — 34,817 (2,129) Total $ 367,944 $ (59,295) $ 224,478 $ (50,908) $ 592,422 $ (110,203) 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 3 months through one year $ 26,310 $ 26,155 Due after one through five years 389,149 379,234 Agency mortgage-backed securities 80,449 73,145 Total $ 495,908 $ 478,534 Held-to-maturity Amortized Estimated Cost Fair Value (Dollars in thousands) Due after three months through one year $ 554 $ 550 Due after one through five years 7,407 7,279 Due after five through ten years 27,335 25,514 Due after ten years 2,834 2,662 Agency mortgage-backed securities 665,679 557,605 Total $ 703,809 $ 593,610
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 (28) Ending balance September 30, 2022 $ 15

Loans and Allowance for Credi_2

Loans and Allowance for Credit Losses on Loans (Tables)	9 Months Ended
Loans and Allowance for Credit Losses on Loans (Tables)	Sep. 30, 2022
Loans and Allowance for Credit Losses on Loans
Schedule of loans	September 30, December 31, 2022 2021 (Dollars in thousands) Loans held-for-investment: Commercial $ 542,829 $ 682,834 Real estate: CRE - owner occupied 612,241 595,934 CRE - non-owner occupied 1,023,405 902,326 Land and construction 167,439 147,855 Home equity 116,489 109,579 Multifamily 229,455 218,856 Residential mortgages 508,839 416,660 Consumer and other 16,620 16,744 Loans 3,217,317 3,090,788 Deferred loan fees, net (844) (3,462) Loans, net of deferred fees 3,216,473 3,087,326 Allowance for credit losses on loans (46,921) (43,290) Loans, net $ 3,169,552 $ 3,044,036
Schedule of changes in allowance for loan (credit) losses	Three Months Ended September 30, 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 $ 6,602 $ 6,009 $ 21,474 $ 2,498 $ 695 $ 2,824 $ 5,232 $ 156 $ 45,490 Charge-offs (7) — — — — — — — (7) Recoveries 202 4 — — 26 — — 200 432 Net recoveries 195 4 — — 26 — — 200 425 Provision for (recapture of) credit losses on loans 302 (96) (416) (7) (36) 406 1,077 (224) 1,006 End of period balance $ 7,099 $ 5,917 $ 21,058 $ 2,491 $ 685 $ 3,230 $ 6,309 $ 132 $ 46,921 Three Months Ended September 30, 2021 CRE CRE Owner Non-owner Land & Home Multi- Residential Consumer Commercial Occupied Occupied Construction Equity Family Mortgage and Other Total (Dollars in thousands) Beginning of period balance $ 10,857 $ 8,206 $ 16,485 $ 2,136 $ 1,069 $ 2,950 $ 1,968 $ 285 $ 43,956 Charge-offs (65) — — — — — — — (65) Recoveries 263 4 — — 36 — — — 303 Net recoveries 198 4 — — 36 — — — 238 Provision for (recapture of) credit losses on loans (822) 57 665 (112) (94) (61) (97) (50) (514) End of period balance $ 10,233 $ 8,267 $ 17,150 $ 2,024 $ 1,011 $ 2,889 $ 1,871 $ 235 $ 43,680 Nine Months Ended September 30, 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 (378) — — — — — — — (378) Recoveries 335 11 — — 81 — — 3,324 3,751 Net recoveries (43) 11 — — 81 — — 3,324 3,373 Provision for (recapture of) credit losses on loans (1,272) (2,048) 3,933 660 (260) 434 2,177 (3,366) 258 End of period balance $ 7,099 $ 5,917 $ 21,058 $ 2,491 $ 685 $ 3,230 $ 6,309 $ 132 $ 46,921 Nine Months Ended September 30, 2021 CRE CRE Owner Non-owner Land & Home Multi- Residential Consumer Commercial Occupied Occupied Construction Equity Family Mortgage and Other Total (Dollars in thousands) Beginning of period balance $ 11,587 $ 8,560 $ 16,416 $ 2,509 $ 1,297 $ 2,804 $ 943 $ 284 $ 44,400 Charge-offs (433) — — — — — — — (433) Recoveries 1,191 12 — 884 75 — — 70 2,232 Net (charge-offs) recoveries 758 12 — 884 75 — — 70 1,799 Provision for (recapture of) credit losses on loans (2,112) (305) 734 (1,369) (361) 85 928 (119) (2,519) End of period balance $ 10,233 $ 8,267 $ 17,150 $ 2,024 $ 1,011 $ 2,889 $ 1,871 $ 235 $ 43,680
Schedule of nonperforming loans by class	September 30, 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 $ 137 $ 354 $ 493 $ 984 Real estate: Home equity — — 52 52 Total $ 137 $ 354 $ 545 $ 1,036 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	September 30, 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 $ 5,357 $ 1,983 $ 585 $ 7,925 $ 534,904 $ 542,829 Real estate: CRE - Owner Occupied — — — — 612,241 612,241 CRE - Non-Owner Occupied 1,336 — — 1,336 1,022,069 1,023,405 Land and construction — — — — 167,439 167,439 Home equity — — — — 116,489 116,489 Multifamily — — — — 229,455 229,455 Residential mortgages — 725 — 725 508,114 508,839 Consumer and other — 125 — 125 16,495 16,620 Total $ 6,693 $ 2,833 $ 585 $ 10,111 $ 3,207,206 $ 3,217,317 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 September 30, 2022 Amortized 2017 and Cost 09/30/2022 12/31/2021 12/31/2020 12/31/2019 12/31/2018 Prior Basis Total (Dollars in thousands) Commercial: Pass $ 107,182 $ 39,653 $ 41,903 $ 8,108 $ 7,675 $ 8,109 $ 283,912 $ 496,542 Special Mention 3,020 7,723 470 200 364 177 18,912 30,866 Substandard 74 577 28 - 8 60 14,183 14,930 Substandard-Nonaccrual - 382 32 - - 77 - 491 Total 110,276 48,335 42,433 8,308 8,047 8,423 317,007 542,829 CRE - Owner Occupied: Pass 107,996 158,793 125,913 53,744 46,652 103,077 7,721 603,896 Special Mention - 2,044 2,010 - - 399 - 4,453 Substandard 743 - 3,136 - - 13 - 3,892 Substandard-Nonaccrual - - - - - - - - Total 108,739 160,837 131,059 53,744 46,652 103,489 7,721 612,241 CRE - Non-Owner Occupied: Pass 256,054 352,789 120,090 107,017 15,231 160,615 2,897 1,014,693 Special Mention - - - - - - - - Substandard - - 2,687 - - 6,025 - 8,712 Substandard-Nonaccrual - - - - - - - - Total 256,054 352,789 122,777 107,017 15,231 166,640 2,897 1,023,405 Land and construction: Pass 105,233 52,120 8,046 2,040 - - - 167,439 Special Mention - - - - - - - - Substandard - - - - - - - - Substandard-Nonaccrual - - - - - - - - Total 105,233 52,120 8,046 2,040 - - - 167,439 Home equity: Pass - - - - - - 116,060 116,060 Special Mention - 98 - - - - - 98 Substandard - - 55 - - 144 132 331 Substandard-Nonaccrual - - - - - - - Total - 98 55 - - 144 116,192 116,489 Multifamily: Pass 30,763 105,073 27,439 30,435 15,280 20,395 70 229,455 Special Mention - - - - - - - - Substandard - - - - - - - - Substandard-Nonaccrual - - - - - - - - Total 30,763 105,073 27,439 30,435 15,280 20,395 70 229,455 Residential mortgage: Pass 160,695 300,323 12,553 6,720 2,889 19,769 - 502,949 Special Mention 2,393 - 2,556 - - 725 - 5,674 Substandard - - - - - 216 - 216 Substandard-Nonaccrual - - - - - - - - Total 163,088 300,323 15,109 6,720 2,889 20,710 - 508,839 Consumer and other: Pass 429 504 - 15 1,379 848 13,320 16,495 Special Mention - - - - - - 125 125 Substandard - - - - - - - - Substandard-Nonaccrual - - - - - - - - Total 429 504 - 15 1,379 848 13,445 16,620 Total loans $ 774,582 $ 1,020,079 $ 346,918 $ 208,279 $ 89,478 $ 320,649 $ 457,332 $ 3,217,317 Risk Grades: Pass $ 768,352 $ 1,009,255 $ 335,944 $ 208,079 $ 89,106 $ 312,813 $ 423,980 $ 3,147,529 Special Mention 5,413 9,865 5,036 200 364 1,301 19,037 41,216 Substandard 817 577 5,906 - 8 6,458 14,315 28,081 Substandard-Nonaccrual - 382 32 - - 77 - 491 Grand Total $ 774,582 $ 1,020,079 $ 346,918 $ 208,279 $ 89,478 $ 320,649 $ 457,332 $ 3,217,317 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	During the Nine Months Ended September 30, 2021 Pre-modification Post-modification Number Outstanding Outstanding of Recorded Recorded Troubled Debt Restructurings: Contracts Investment Investment (Dollars in thousands) Commercial 1 $ 3 $ 3 Total 1 $ 3 $ 3

Goodwill and Other Intangible_2

Goodwill and Other Intangible Assets (Tables)	9 Months Ended
Goodwill and Other Intangible Assets (Tables)	Sep. 30, 2022
Goodwill and Other Intangible Assets
Schedule of carrying amount of goodwill by segment	September 30, 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	September 30, 2022 Gross Remaining Carrying Accumulated Carrying Amount Amortization Amount (Dollars in thousands) Core deposit intangibles $ 25,023 $ (13,817) $ 11,206 Customer relationship and brokered relationship intangibles 1,900 (1,503) 397 Below market leases 110 (21) 89 Total $ 27,033 $ (15,341) $ 11,692 December 31, 2021 Gross Remaining Carrying Accumulated Carrying Amount Amortization Amount (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 $ 612 48 $ (1) $ 659 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 $ 11,206 $ 397 $ 89 $ 11,692

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
Income Taxes (Tables)	Sep. 30, 2022
Income Taxes
Summary of carrying amount of low income tax housing investment	September 30, December 31, 2022 2021 (Dollars in thousands) Low income housing investments $ 3,748 $ 4,380 Future commitments $ 568 $ 568

Benefit Plans (Tables)

Benefit Plans (Tables)	9 Months Ended
Benefit Plans (Tables)	Sep. 30, 2022
Supplemental Retirement Plan
Benefit plans
Schedule of components of net periodic benefit cost	Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 (Dollars in thousands) Components of net periodic benefit cost: Service cost $ 87 $ 120 $ 261 $ 360 Interest cost 216 190 648 570 Amortization of prior service cost — — — 100 Amortization of net actuarial loss 114 136 342 408 Net periodic benefit cost $ 417 $ 446 $ 1,251 $ 1,438
Split-Dollar Life Insurance Benefit Plan
Benefit plans
Schedule of change in projected benefit obligation	September 30, 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 185 219 Actuarial loss — (664) Projected benefit obligation at end of period $ 9,429 $ 9,244
Schedule of amounts recognized in accumulated other comprehensive loss	September 30, December 31, 2022 2021 (Dollars in thousands) Net actuarial loss $ 4,699 $ 4,601 Prior transition obligation 812 879 Accumulated other comprehensive loss $ 5,511 $ 5,480
Schedule of components of net periodic benefit cost	Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 (Dollars in thousands) Amortization of prior transition obligation and actuarial losses $ (10) $ (1) $ (31) $ (3) Interest cost 62 54 185 164 Net periodic benefit cost $ 52 $ 53 $ 154 $ 161

Fair Value (Tables)

Fair Value (Tables)	9 Months Ended
Fair Value (Tables)	Sep. 30, 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 September 30, 2022 Available-for-sale securities: U.S. Treasury $ 405,389 $ 405,389 $ — $ — Agency mortgage-backed securities 73,145 — 73,145 — I/O strip receivables 171 — 171 — 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 $ 681,751 $ 681,751 $ — $ — $ 681,751 Securities available-for-sale 478,534 405,389 73,145 — 478,534 Securities held-to-maturity, net 703,794 — 593,610 — 593,610 Loans (including loans held-for-sale), net 3,171,633 — 2,081 3,022,893 3,024,974 FHLB stock, FRB stock, and other investments 32,517 — — — N/A Accrued interest receivable 14,348 1,683 2,334 10,331 14,348 I/O strips receivables 171 — 171 — 171 Liabilities: Time deposits $ 131,460 $ — $ 131,643 $ — $ 131,643 Other deposits 4,551,805 — 4,551,805 — 4,551,805 Subordinated debt 39,312 — 36,945 — 36,945 Accrued interest payable 960 — 960 — 960 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, net 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)	9 Months Ended
Equity Plan (Tables)	Sep. 30, 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 Granted 372,000 $ 11.03 Exercised (150,652) $ 5.77 Forfeited or expired (91,175) $ 12.26 Outstanding at September 30, 2022 2,714,805 $ 10.30 5.53 $ 4,998,498 Vested or expected to vest 2,551,917 5.53 $ 4,698,588 Exercisable at September 30, 2022 2,011,447 4.39 $ 4,636,786
Schedule of information related to the equity Plan	Nine Months Ended September 30, 2022 2021 Intrinsic value of options exercised $ 719,946 $ 1,103,925 Cash received from option exercise $ 869,950 $ 1,069,391 Tax benefit (expense) realized from option exercises $ 53,552 $ 58,208 Weighted average fair value of options granted $ 2.18 $ 2.32
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 Granted 238,811 $ 11.16 Vested (252,081) $ 11.81 Forfeited or expired (12,506) $ 10.93 Nonvested shares at September 30, 2022 272,790 $ 11.05

Capital Requirements (Tables)

Capital Requirements (Tables)	9 Months Ended
Capital Requirements (Tables)	Sep. 30, 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 September 30, 2022 Total Capital $ 538,072 14.5 % $ 388,764 10.5 % (to risk-weighted assets) Tier 1 Capital $ 459,504 12.4 % $ 314,714 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 459,504 12.4 % $ 259,176 7.0 % (to risk-weighted assets) Tier 1 Capital $ 459,504 8.7 % $ 211,506 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 September 30, 2022 Total Capital $ 516,460 14.0 % $ 370,032 10.0 % $ 388,534 10.5 % (to risk-weighted assets) Tier 1 Capital $ 477,203 12.9 % $ 296,026 8.0 % $ 314,527 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 477,203 12.9 % $ 240,521 6.5 % $ 259,022 7.0 % (to risk-weighted assets) Tier 1 Capital $ 477,203 9.0 % $ 264,272 5.0 % $ 211,417 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 Loss Continge_2

Commitments and Loss Contingencies (Tables)	9 Months Ended
Commitments and Loss Contingencies (Tables)	Sep. 30, 2022
Commitments and Loss Contingencies
Schedule of commitments to extend credit	September 30, 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 $ 102,770 $ 1,049,501 $ 1,152,271 $ 119,071 $ 1,015,588 $ 1,134,659 Standby letters of credit 3,942 7,006 10,948 3,084 13,068 16,152 $ 106,712 $ 1,056,507 $ 1,163,219 $ 122,155 $ 1,028,656 $ 1,150,811

Revenue Recognition (Tables)

Revenue Recognition (Tables)	9 Months Ended
Revenue Recognition (Tables)	Sep. 30, 2022
Revenue Recognition
Schedule of noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606	Three Months Ended September 30, 2022 2021 (Dollars in thousands) Noninterest Income In-scope of Topic 606: Service charges and fees on deposit accounts $ 1,360 $ 584 Total noninterest income in-scope of Topic 606 1,360 584 Noninterest Income Out-of-scope of Topic 606 1,421 1,824 Total noninterest income $ 2,781 $ 2,408 Nine Months Ended September 30, 2022 2021 (Dollars in thousands) Noninterest Income In-scope of Topic 606: Service charges and fees on deposit accounts $ 2,839 $ 1,844 Total noninterest income in-scope of Topic 606 2,839 1,844 Noninterest Income Out-of-scope of Topic 606 4,500 5,034 Total noninterest income $ 7,339 $ 6,878

Noninterest Expense (Tables)

Noninterest Expense (Tables)	9 Months Ended
Noninterest Expense (Tables)	Sep. 30, 2022
Noninterest Expense
Schedule of noninterest expense	Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 (Dollars in thousands) Salaries and employee benefits $ 14,119 $ 12,461 $ 41,416 $ 38,991 Occupancy and equipment 2,415 2,151 7,129 6,672 Insurance expense 1,361 949 3,447 2,273 Professional fees 1,230 1,211 3,601 4,701 Amortization of intangible assets 659 754 1,976 2,241 Data processing 562 507 1,894 1,624 Reserve for litigation — 500 — 4,500 Other 3,553 3,298 10,878 9,848 Total noninterest expense $ 23,899 $ 21,831 $ 70,341 $ 70,850

Leases (Tables)

Leases (Tables)	9 Months Ended
Leases (Tables)	Sep. 30, 2022
Leases
Schedule of leases	Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 (Dollars in thousands) Operating Lease Cost (Cost resulting from lease payments) $ 1,691 $ 1,621 $ 4,931 $ 4,913 Operating Lease - Operating Cash Flows (Fixed Payments) $ 1,252 $ 1,432 $ 3,697 $ 3,837 Operating Lease - ROU assets $ 32,943 $ 35,707 $ 32,943 $ 35,707 Operating Lease - Liabilities $ 32,943 $ 35,707 $ 32,943 $ 35,707 Weighted Average Lease Term - Operating Leases 6.86 yrs 7.59 yrs 6.86 yrs 7.59 yrs Weighted Average Discount Rate - Operating Leases 4.44% 4.48% 4.44% 4.48%
Schedule of maturity analysis shows the undiscounted cash flows due on the Company's operating lease liabilities	(Dollars in thousands) 2022 remaining $ 1,562 2023 5,964 2024 5,636 2025 5,233 2026 4,671 Thereafter 15,479 Total undiscounted cash flows 38,545 Discount on cash flows (5,602) Total lease liability $ 32,943

Business Segment Information (T

Business Segment Information (Tables)	9 Months Ended
Business Segment Information (Tables)	Sep. 30, 2022
Business Segment Information
Schedule of information by operating segment	Three Months Ended September 30, 2022 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 46,973 $ 3,201 $ 50,174 Intersegment interest allocations 329 (329) — Total interest expense 2,133 — 2,133 Net interest income 45,169 2,872 48,041 Provision for (recapture of) credit losses on loans 1,126 (120) 1,006 Net interest income after provision 44,043 2,992 47,035 Noninterest income 2,677 104 2,781 Noninterest expense 22,216 1,683 23,899 Intersegment expense allocations 128 (128) — Income before income taxes 24,632 1,285 25,917 Income tax expense 7,468 380 7,848 Net income $ 17,164 $ 905 $ 18,069 Total assets $ 5,355,212 $ 76,050 $ 5,431,262 Loans, net of deferred fees $ 3,155,923 $ 60,550 $ 3,216,473 Goodwill $ 154,587 $ 13,044 $ 167,631 (1) Includes the holding company’s results of operations Three Months Ended September 30, 2021 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 37,093 $ 2,814 $ 39,907 Intersegment interest allocations 219 (219) — Total interest expense 1,725 — 1,725 Net interest income 35,587 2,595 38,182 Provision (recapture) for credit losses on loans (588) 74 (514) Net interest income after provision 36,175 2,521 38,696 Noninterest income 2,313 95 2,408 Noninterest expense 20,428 1,403 21,831 Intersegment expense allocations 69 (69) — Income before income taxes 18,129 1,144 19,273 Income tax expense 5,217 338 5,555 Net income $ 12,912 $ 806 $ 13,718 Total assets $ 5,392,948 $ 70,054 $ 5,463,002 Loans, net of deferred fees $ 2,776,114 $ 56,745 $ 2,832,859 Goodwill $ 154,587 $ 13,044 $ 167,631 (1) Includes the holding company’s results of operations Nine Months Ended September 30, 2022 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 124,513 $ 9,123 $ 133,636 Intersegment interest allocations 887 (887) — Total interest expense 5,495 — 5,495 Net interest income 119,905 8,236 128,141 Provision for (recapture of) credit losses on loans 259 (1) 258 Net interest income after provision 119,646 8,237 127,883 Noninterest income 7,049 290 7,339 Noninterest expense 65,542 4,799 70,341 Intersegment expense allocations 370 (370) — Income before income taxes 61,523 3,358 64,881 Income tax expense 18,132 993 19,125 Net income $ 43,391 $ 2,365 $ 45,756 Total assets $ 5,355,212 $ 76,050 $ 5,431,262 Loans, net of deferred fees $ 3,155,923 $ 60,550 $ 3,216,473 Goodwill $ 154,587 $ 13,044 $ 167,631 (1) Includes the holding company’s results of operations Nine Months Ended September 30, 2021 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 105,064 $ 8,236 $ 113,300 Intersegment interest allocations 632 (632) — Total interest expense 5,284 — 5,284 Net interest income 100,412 7,604 108,016 Provision (recapture) for credit losses on loans (2,537) 18 (2,519) Net interest income after provision 102,949 7,586 110,535 Noninterest income 6,522 356 6,878 Noninterest expense 66,656 4,194 70,850 Intersegment expense allocations 302 (302) — Income before income taxes 43,117 3,446 46,563 Income tax expense 11,809 1,019 12,828 Net income $ 31,308 $ 2,427 $ 33,735 Total assets $ 5,392,948 $ 70,054 $ 5,463,002 Loans, net of deferred fees $ 2,776,114 $ 56,745 $ 2,832,859 Goodwill $ 154,587 $ 13,044 $ 167,631 (1) Includes the holding company’s results of operations

Basis of Presentation (Details)

Basis of Presentation (Details)	9 Months Ended
Basis of Presentation (Details)	Sep. 30, 2022 USD ($) 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						9 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2022	Sep. 30, 2021
Reconciliation of factors used in computing basic and diluted earnings per common share
Net income	$ 18,069	$ 14,821	$ 12,866	$ 13,718	$ 8,813	$ 11,204	$ 45,756	$ 33,735
Weighted average common shares outstanding for basic earnings per common share (in shares)	60,686,992			60,220,717			60,541,015	60,078,953
Dilutive potential common shares	436,809			539,472			463,825	556,351
Shares used in computing diluted earnings per common share (in shares)	61,123,801			60,760,189			61,004,840	60,635,304
Basic earnings per share (in dollars per share)	$ 0.30			$ 0.23			$ 0.76	$ 0.56
Diluted earnings per share (in dollars per share)	$ 0.30			$ 0.23			$ 0.75	$ 0.56
Number of shares in computing diluted earnings per common share	1,365,172			1,056,216			1,365,172	1,066,216

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (''AOCI'') - Changes in AOCI by Component (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2022	Sep. 30, 2021
Changes in AOCI by Component
Balance at the beginning of the period, net of taxes			$ (10,996)				$ (10,996)
Net current period other comprehensive income (loss), net of taxes	$ (9,294)	$ (1,864)	(3,058)	$ (174)	$ (264)	$ (551)	(14,216)	$ (989)
Balance at the end of the period, net of taxes	(25,212)						(25,212)
Accumulated Other Comprehensive Income / (Loss)
Changes in AOCI by Component
Balance at the beginning of the period, net of taxes	(15,918)		(10,996)	(11,532)		(10,717)	(10,996)	(10,717)
Other comprehensive loss before reclassification, net of taxes	(9,367)			(260)			(14,435)	(1,318)
Amounts reclassified from other comprehensive income (loss), net of taxes	73			86			219	329
Net current period other comprehensive income (loss), net of taxes	(9,294)	(1,864)	(3,058)	(174)	(264)	(551)	(14,216)	(989)
Balance at the end of the period, net of taxes	(25,212)	(15,918)		(11,706)	(11,532)		(25,212)	(11,706)
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	(2,909)		2,153	2,873		3,929	2,153	3,929
Other comprehensive loss before reclassification, net of taxes	(9,364)			(259)			(14,426)	(1,315)
Net current period other comprehensive income (loss), net of taxes	(9,364)			(259)			(14,426)	(1,315)
Balance at the end of the period, net of taxes	(12,273)	(2,909)		2,614	2,873		(12,273)	2,614
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				243		261		261
Amounts reclassified from other comprehensive income (loss), net of taxes				(9)				(27)
Net current period other comprehensive income (loss), net of taxes				(9)				(27)
Balance at the end of the period, net of taxes				234	243			234
Defined Benefit Pension Plan Items
Changes in AOCI by Component
Balance at the beginning of the period, net of taxes	(13,009)		$ (13,149)	(14,648)		$ (14,907)	(13,149)	(14,907)
Other comprehensive loss before reclassification, net of taxes	(3)			(1)			(9)	(3)
Amounts reclassified from other comprehensive income (loss), net of taxes	73			95			219	356
Net current period other comprehensive income (loss), net of taxes	70			94			210	353
Balance at the end of the period, net of taxes	$ (12,939)	$ (13,009)		$ (14,554)	$ (14,648)		$ (12,939)	$ (14,554)

Accumulated Other Comprehensi_4

Accumulated Other Comprehensive Income (''AOCI'') - Amount Reclassified from AOCI (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2022	Sep. 30, 2021
Amount Reclassified from AOCI
Interest income on taxable securities	$ 5,874			$ 2,320			$ 13,725	$ 5,992
Income tax expense	(7,848)			(5,555)			(19,125)	(12,828)
Net income	18,069	$ 14,821	$ 12,866	13,718	$ 8,813	$ 11,204	45,756	33,735
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				27
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				39
Income tax expense				(4)				(12)
Net income				9				27
Defined Benefit Pension Plan Items
Amount Reclassified from AOCI
Net of tax	(73)			(95)			(219)	(356)
Defined Benefit Pension Plan Items \| Amount Reclassified from AOCI
Amount Reclassified from AOCI
Other noninterest expense	(104)			(135)			(311)	(505)
Income tax benefit	31			40			92	149
Net of tax	(73)			(95)			(219)	(356)
Prior transition obligation \| Amount Reclassified from AOCI
Amount Reclassified from AOCI
Other noninterest expense	10			1			31	3
Prior service cost \| Amount Reclassified from AOCI
Amount Reclassified from AOCI
Other noninterest expense	(114)			(136)			(342)	(508)
Accumulated Other Comprehensive Income / (Loss)
Amount Reclassified from AOCI
Net of tax	(73)			(86)			(219)	(329)
Accumulated Other Comprehensive Income / (Loss) \| Amount Reclassified from AOCI
Amount Reclassified from AOCI
Net of tax	$ (73)			$ (86)			$ (219)	$ (329)

Securities - Amortized Cost and

Securities - Amortized Cost and Estimated Fair Value of Securities - Securities Available-for-sale (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Securities available-for-sale:
Amortized Cost	$ 495,908	$ 99,359
Gross Unrealized Gains	5	2,893
Gross Unrealized (Losses)	(17,379)
Estimated Fair Value	478,534	102,252
Agency mortgage-backed securities
Securities available-for-sale:
Amortized Cost	80,449	99,359
Gross Unrealized Gains		2,893
Gross Unrealized (Losses)	(7,304)
Estimated Fair Value	73,145	$ 102,252
U.S. Treasury
Securities available-for-sale:
Amortized Cost	415,459
Gross Unrealized Gains	5
Gross Unrealized (Losses)	(10,075)
Estimated Fair Value	$ 405,389

Securities - Amortized Cost a_2

Securities - Amortized Cost and Estimated Fair Value of Securities - Securities Held-to-maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Securities held-to-maturity:
Total	$ 703,809	$ 658,440
Gross Unrecognized Gains	4	3,961
Gross Unrecognized (Losses)	(110,203)	(4,752)
Estimated Fair Value	593,610	657,649
Allowance for credit losses	(15)	(43)
Agency mortgage-backed securities
Securities held-to-maturity:
Total	665,679	607,377
Gross Unrecognized Gains		3,157
Gross Unrecognized (Losses)	(108,074)	(4,752)
Estimated Fair Value	557,605	605,782
Municipals - Tax Exempt
Securities held-to-maturity:
Total	38,130	51,063
Gross Unrecognized Gains	4	804
Gross Unrecognized (Losses)	(2,129)
Estimated Fair Value	36,005	51,867
Allowance for credit losses	$ (15)	$ (43)

Securities - Securities with Un

Securities - Securities with Unrealized Losses - Securities Held-to-maturity (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Securities, Fair Value
Less Than 12 Months	$ 469,001,000
Total	469,001,000
Less Than 12 Months	367,944,000	$ 408,856,000
12 Months or More	224,478,000	27,997,000
Total	592,422,000	436,853,000
Securities, Unrealized (Losses)
Less Than 12 Months	(17,379,000)
Total	(17,379,000)
Less Than 12 Months	(59,295,000)	(3,319,000)
12 Months or More	(50,908,000)	(1,433,000)
Total	(110,203,000)	(4,752,000)
Agency mortgage-backed securities
Securities, Fair Value
Less Than 12 Months	73,145,000
Total	73,145,000
Less Than 12 Months	333,127,000	408,856,000
12 Months or More	224,478,000	27,997,000
Total	557,605,000	436,853,000
Securities, Unrealized (Losses)
Less Than 12 Months	(7,304,000)
Total	(7,304,000)
Less Than 12 Months	(57,166,000)	(3,319,000)
12 Months or More	(50,908,000)	(1,433,000)
Total	(108,074,000)	$ (4,752,000)
U.S. Treasury
Securities, Fair Value
Less Than 12 Months	395,856,000
Total	395,856,000
Securities, Unrealized (Losses)
Less Than 12 Months	(10,075,000)
Total	(10,075,000)
Municipals - Tax Exempt
Securities, Fair Value
Less Than 12 Months	34,817,000
Total	34,817,000
Securities, Unrealized (Losses)
Less Than 12 Months	(2,129,000)
Total	$ (2,129,000)

Securities - Additional Informa

Securities - Additional Information (Details)	9 Months Ended
Securities - Additional Information (Details)	Sep. 30, 2022 USD ($) item security	Dec. 31, 2021 USD ($)
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%
Number of securities held \| item	452
Number of available for sale securities held \| item	171
Number of held to maturity securities held \| item	281
Number of securities with fair values below amortized cost \| item	444
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months	$ 469,001,000
Debt Securities, Held-to-Maturity, Continuous Unrealized Losses Position, Less than 12 Months, Fair Value	367,944,000	$ 408,856,000
Debt Securities, Held-to-Maturity, Continuous Unrealized Losses Position, 12 Months or Longer, Fair Value	224,478,000	27,997,000
Total unrealized loss for securities carried less than 12 months	(76,674,000)
Total unrealized loss for securities carried for 12 months or more	(50,908,000)
Agency mortgage-backed securities
Additional Information
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months	73,145,000
Debt Securities, Held-to-Maturity, Continuous Unrealized Losses Position, Less than 12 Months, Fair Value	333,127,000	408,856,000
Debt Securities, Held-to-Maturity, Continuous Unrealized Losses Position, 12 Months or Longer, Fair Value	224,478,000	$ 27,997,000
U.S. Treasury
Additional Information
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months	395,856,000
Municipals - Tax Exempt
Additional Information
Debt Securities, Held-to-Maturity, Continuous Unrealized Losses Position, Less than 12 Months, Fair Value	$ 34,817,000

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	Sep. 30, 2022	Dec. 31, 2021
Available-for-sale, Amortized Cost
Due after 3 months through one year	$ 26,310
Due after one year through five years	389,149
Agency mortgage-backed securities	80,449
Total	495,908	$ 99,359
Available-for-sale, Estimated Fair Value
Due after 3 months through one year	26,155
Due after one year through five years	379,234
Agency mortgage-backed securities	73,145
Total	$ 478,534	$ 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	Sep. 30, 2022	Dec. 31, 2021
Held-to-maturity, Amortized Cost
Due after 3 months through one year	$ 554
Due after one year through five years	7,407
Due after five years through ten years	27,335
Due after ten years	2,834
Agency mortgage-backed securities	665,679
Total	703,809
Held-to-maturity, Estimated Fair Value
Due after 3 months through one year	550
Due after one year through five years	7,279
Due after five years through ten years	25,514
Due after ten years	2,662
Agency mortgage-backed securities	557,605
Total	$ 593,610	$ 657,649

Securities - Securities Pledged

Securities - Securities Pledged to Secure Public Deposits and for Other Purposes (Details) - USD ($)	Sep. 30, 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	$ 68,105,000	$ 42,473,000

Securities - Roll-forward by ma

Securities - Roll-forward by major security type (Details)	9 Months Ended
Securities - Roll-forward by major security type (Details)	Sep. 30, 2022 USD ($)
Securities
Debt Securities, Held-to-maturity, Allowance for Credit Loss, Beginning Balance	$ 43,000
Provision for (recapture of) credit losses	(28,000)
Debt Securities, Held-to-maturity, Allowance for Credit Loss, Ending Balance	$ 15,000

Loans and Allowance for Credi_3

Loans and Allowance for Credit Losses on Loans - Loans Balance (Details) - USD ($)	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020
Loans held-for-investment:
Total loan balance	$ 3,217,317,000		$ 3,090,788,000
Deferred loan fees, net	(844,000)		(3,462,000)
Loans, net of deferred fees	3,216,473,000		3,087,326,000	$ 2,832,859,000
Allowance for credit losses on loans	(46,921,000)	$ (45,490,000)	(43,290,000)	(43,680,000)	$ (43,956,000)	$ (44,400,000)
Loans, net	3,169,552,000		3,044,036,000
Commercial. \| SBA Paycheck Protection Program ("PPP")
Loans held-for-investment:
Allowance for credit losses on loans	0		0
Loans, net	1,614,000		88,726,000
Commercial
Loans held-for-investment:
Total loan balance	542,829,000		682,834,000
Allowance for credit losses on loans	(7,099,000)	(6,602,000)	(8,414,000)	(10,233,000)	(10,857,000)	(11,587,000)
Commercial \| Commercial.
Loans held-for-investment:
Total loan balance	542,829,000		682,834,000
Commercial Loans excluding SBA Paycheck Protection Program [Member] \| Commercial.
Loans held-for-investment:
Total loan balance	542,829,000		682,834,000
CRE - Owner Occupied
Loans held-for-investment:
Total loan balance	612,241,000		595,934,000
Allowance for credit losses on loans	(5,917,000)	(6,009,000)	(7,954,000)	(8,267,000)	(8,206,000)	(8,560,000)
CRE - Owner Occupied \| Real estate
Loans held-for-investment:
Total loan balance	612,241,000		595,934,000
CRE - Non-Owner Occupied
Loans held-for-investment:
Total loan balance	1,023,405,000		902,326,000
Allowance for credit losses on loans	(21,058,000)	(21,474,000)	(17,125,000)	(17,150,000)	(16,485,000)	(16,416,000)
CRE - Non-Owner Occupied \| Real estate
Loans held-for-investment:
Total loan balance	1,023,405,000		902,326,000
Land & Construction
Loans held-for-investment:
Total loan balance	167,439,000		147,855,000
Allowance for credit losses on loans	(2,491,000)	(2,498,000)	(1,831,000)	(2,024,000)	(2,136,000)	(2,509,000)
Land & Construction \| Real estate
Loans held-for-investment:
Total loan balance	167,439,000		147,855,000
Home Equity
Loans held-for-investment:
Total loan balance	116,489,000		109,579,000
Allowance for credit losses on loans	(685,000)	(695,000)	(864,000)	(1,011,000)	(1,069,000)	(1,297,000)
Home Equity \| Real estate
Loans held-for-investment:
Total loan balance	116,489,000		109,579,000
Multi-Family
Loans held-for-investment:
Total loan balance	229,455,000		218,856,000
Allowance for credit losses on loans	(3,230,000)	(2,824,000)	(2,796,000)	(2,889,000)	(2,950,000)	(2,804,000)
Multi-Family \| Real estate
Loans held-for-investment:
Total loan balance	229,455,000		218,856,000
Residential Mortgage
Loans held-for-investment:
Total loan balance	508,839,000		416,660,000
Allowance for credit losses on loans	(6,309,000)	(5,232,000)	(4,132,000)	(1,871,000)	(1,968,000)	(943,000)
Residential Mortgage \| Real estate
Loans held-for-investment:
Total loan balance	508,839,000		416,660,000
Consumer and Other
Loans held-for-investment:
Total loan balance	16,620,000		16,744,000
Allowance for credit losses on loans	(132,000)	$ (156,000)	(174,000)	$ (235,000)	$ (285,000)	$ (284,000)
Consumer and Other \| Consumer
Loans held-for-investment:
Total loan balance	$ 16,620,000		$ 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 ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning of period balance	$ 45,490	$ 43,956	$ 43,290	$ 44,400
Charge-offs	(7)	(65)	(378)	(433)
Recoveries	432	303	3,751	2,232
Net recoveries	425	238	3,373	1,799
Provision for (recapture of) credit losses on loans	1,006	(514)	258	(2,519)
End of period balance	46,921	43,680	46,921	43,680
Commercial
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning of period balance	6,602	10,857	8,414	11,587
Charge-offs	(7)	(65)	(378)	(433)
Recoveries	202	263	335	1,191
Net recoveries	195	198	(43)	758
Provision for (recapture of) credit losses on loans	302	(822)	(1,272)	(2,112)
End of period balance	7,099	10,233	7,099	10,233
CRE - Owner Occupied
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning of period balance	6,009	8,206	7,954	8,560
Recoveries	4	4	11	12
Net recoveries	4	4	11	12
Provision for (recapture of) credit losses on loans	(96)	57	(2,048)	(305)
End of period balance	5,917	8,267	5,917	8,267
CRE - Non-Owner Occupied
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning of period balance	21,474	16,485	17,125	16,416
Provision for (recapture of) credit losses on loans	(416)	665	3,933	734
End of period balance	21,058	17,150	21,058	17,150
Land & Construction
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning of period balance	2,498	2,136	1,831	2,509
Recoveries				884
Net recoveries				884
Provision for (recapture of) credit losses on loans	(7)	(112)	660	(1,369)
End of period balance	2,491	2,024	2,491	2,024
Home Equity
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning of period balance	695	1,069	864	1,297
Recoveries	26	36	81	75
Net recoveries	26	36	81	75
Provision for (recapture of) credit losses on loans	(36)	(94)	(260)	(361)
End of period balance	685	1,011	685	1,011
Multi-Family
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning of period balance	2,824	2,950	2,796	2,804
Provision for (recapture of) credit losses on loans	406	(61)	434	85
End of period balance	3,230	2,889	3,230	2,889
Residential Mortgage
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning of period balance	5,232	1,968	4,132	943
Provision for (recapture of) credit losses on loans	1,077	(97)	2,177	928
End of period balance	6,309	1,871	6,309	1,871
Consumer and Other
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning of period balance	156	285	174	284
Recoveries	200		3,324	70
Net recoveries	200		3,324	70
Provision for (recapture of) credit losses on loans	(224)	(50)	(3,366)	(119)
End of period balance	$ 132	$ 235	$ 132	$ 235

Loans and Allowance for Credi_5

Loans and Allowance for Credit Losses on Loans - Nonaccrual Status and Loans Past Due Over 90 Days (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Nonperforming Loans by Class
Nonaccrual Financing Receivable, no Specific Allowance for Credit Losses	$ 137	$ 2,432
Nonaccrual Financing Receivable, with Special Allowance for Credit Losses	354	1,028
Loans Over 90 Days Past Due and Still Accruing	545	278
Total	1,036	3,738
Commercial.
Nonperforming Loans by Class
Nonaccrual Financing Receivable, no Specific Allowance for Credit Losses	137	94
Nonaccrual Financing Receivable, with Special Allowance for Credit Losses	354	1,028
Loans Over 90 Days Past Due and Still Accruing	493	278
Total	984	1,400
CRE - Owner Occupied \| Real estate
Nonperforming Loans by Class
Nonaccrual Financing Receivable, no Specific Allowance for Credit Losses		1,126
Total		1,126
Home Equity \| Real estate
Nonperforming Loans by Class
Nonaccrual Financing Receivable, no Specific Allowance for Credit Losses		84
Loans Over 90 Days Past Due and Still Accruing	52
Total	$ 52	84
Multi-Family \| Real estate
Nonperforming Loans by Class
Nonaccrual Financing Receivable, no Specific Allowance for Credit Losses		1,128
Total		$ 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 ($)	Sep. 30, 2022	Dec. 31, 2021	Sep. 30, 2021
Aging of Past Due Loans by Class of Loans
Loan balance	$ 3,216,473,000	$ 3,087,326,000	$ 2,832,859,000
Total	3,217,317,000	3,090,788,000
30-59 Days Past Due
Aging of Past Due Loans by Class of Loans
Loan balance	6,693,000	3,313,000
60-89 Days Past Due
Aging of Past Due Loans by Class of Loans
Loan balance	2,833,000	168,000
90 Days or Greater Past Due
Aging of Past Due Loans by Class of Loans
Loan balance	585,000	1,534,000
Past due
Aging of Past Due Loans by Class of Loans
Loan balance	10,111,000	5,015,000
Current
Aging of Past Due Loans by Class of Loans
Loan balance	3,207,206,000	3,085,773,000
Commercial
Aging of Past Due Loans by Class of Loans
Total	542,829,000	682,834,000
Commercial \| Commercial.
Aging of Past Due Loans by Class of Loans
Total	542,829,000	682,834,000
Commercial \| Commercial. \| 30-59 Days Past Due
Aging of Past Due Loans by Class of Loans
Loan balance	5,357,000	2,714,000
Commercial \| Commercial. \| 60-89 Days Past Due
Aging of Past Due Loans by Class of Loans
Loan balance	1,983,000	168,000
Commercial \| Commercial. \| 90 Days or Greater Past Due
Aging of Past Due Loans by Class of Loans
Loan balance	585,000	408,000
Commercial \| Commercial. \| Past due
Aging of Past Due Loans by Class of Loans
Loan balance	7,925,000	3,290,000
Commercial \| Commercial. \| Current
Aging of Past Due Loans by Class of Loans
Loan balance	534,904,000	679,544,000
CRE - Owner Occupied
Aging of Past Due Loans by Class of Loans
Total	612,241,000	595,934,000
CRE - Owner Occupied \| Real estate
Aging of Past Due Loans by Class of Loans
Total	612,241,000	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
CRE - Owner Occupied \| Real estate \| Past due
Aging of Past Due Loans by Class of Loans
Loan balance		1,126,000
CRE - Owner Occupied \| Real estate \| Current
Aging of Past Due Loans by Class of Loans
Loan balance	612,241,000	594,808,000
CRE - Non-Owner Occupied
Aging of Past Due Loans by Class of Loans
Total	1,023,405,000	902,326,000
CRE - Non-Owner Occupied \| Real estate
Aging of Past Due Loans by Class of Loans
Total	1,023,405,000	902,326,000
CRE - Non-Owner Occupied \| Real estate \| 30-59 Days Past Due
Aging of Past Due Loans by Class of Loans
Loan balance	1,336,000
CRE - Non-Owner Occupied \| Real estate \| Past due
Aging of Past Due Loans by Class of Loans
Loan balance	1,336,000
CRE - Non-Owner Occupied \| Real estate \| Current
Aging of Past Due Loans by Class of Loans
Loan balance	1,022,069,000	902,326,000
Land & Construction
Aging of Past Due Loans by Class of Loans
Total	167,439,000	147,855,000
Land & Construction \| Real estate
Aging of Past Due Loans by Class of Loans
Total	167,439,000	147,855,000
Land & Construction \| Real estate \| Current
Aging of Past Due Loans by Class of Loans
Loan balance	167,439,000	147,855,000
Home Equity
Aging of Past Due Loans by Class of Loans
Total	116,489,000	109,579,000
Home Equity \| Real estate
Aging of Past Due Loans by Class of Loans
Total	116,489,000	109,579,000
Home Equity \| Real estate \| Current
Aging of Past Due Loans by Class of Loans
Loan balance	116,489,000	109,579,000
Multi-Family
Aging of Past Due Loans by Class of Loans
Total	229,455,000	218,856,000
Multi-Family \| Real estate
Aging of Past Due Loans by Class of Loans
Total	229,455,000	218,856,000
Multi-Family \| Real estate \| Current
Aging of Past Due Loans by Class of Loans
Loan balance	229,455,000	218,856,000
Residential Mortgage
Aging of Past Due Loans by Class of Loans
Total	508,839,000	416,660,000
Residential Mortgage \| Real estate
Aging of Past Due Loans by Class of Loans
Total	508,839,000	416,660,000
Residential Mortgage \| Real estate \| 30-59 Days Past Due
Aging of Past Due Loans by Class of Loans
Loan balance		599,000
Residential Mortgage \| Real estate \| 60-89 Days Past Due
Aging of Past Due Loans by Class of Loans
Loan balance	725,000
Residential Mortgage \| Real estate \| Past due
Aging of Past Due Loans by Class of Loans
Loan balance	725,000	599,000
Residential Mortgage \| Real estate \| Current
Aging of Past Due Loans by Class of Loans
Loan balance	508,114,000	416,061,000
Consumer and Other
Aging of Past Due Loans by Class of Loans
Total	16,620,000	16,744,000
Consumer and Other \| Consumer
Aging of Past Due Loans by Class of Loans
Total	16,620,000	16,744,000
Consumer and Other \| Consumer \| 60-89 Days Past Due
Aging of Past Due Loans by Class of Loans
Loan balance	125,000
Consumer and Other \| Consumer \| Past due
Aging of Past Due Loans by Class of Loans
Loan balance	125,000
Consumer and Other \| Consumer \| Current
Aging of Past Due Loans by Class of Loans
Loan balance	$ 16,495,000	$ 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 ($)	Sep. 30, 2022	Dec. 31, 2021	Sep. 30, 2021
Aging of Past Due Loans by Class of Loans
Loans, net of deferred fees	$ 3,216,473,000	$ 3,087,326,000	$ 2,832,859,000
30 days or greater past due
Aging of Past Due Loans by Class of Loans
Nonaccrual loans	125,000	1,258,000
Less than 30 days past due
Aging of Past Due Loans by Class of Loans
Nonaccrual loans	366,000	2,202,000
Past due
Aging of Past Due Loans by Class of Loans
Loans, net of deferred fees	$ 10,111,000	$ 5,015,000

Loans and Allowance for Credi_8

Loans and Allowance for Credit Losses on Loans - Credit Quality Indicators (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Loans
2022/ 2021	$ 774,582	$ 1,359,286
2021/ 2020	1,020,079	421,591
2020/ 2019	346,918	244,397
2019/ 2018	208,279	138,204
2018/ 2017	89,478	131,061
Prior Periods	320,649	294,461
Revolving	457,332	501,788
Total loan balance	3,217,317	3,090,788
Balance to report	3,169,552	3,044,036
Loan classified as loss
Loans
Balance to report	0	0
Commercial
Loans
2022/ 2021	110,276	215,159
2021/ 2020	48,335	67,141
2020/ 2019	42,433	15,342
2019/ 2018	8,308	13,058
2018/ 2017	8,047	7,856
Prior Periods	8,423	5,761
Revolving	317,007	358,517
Total loan balance	542,829	682,834
Commercial \| Pass [Member]
Loans
2022/ 2021	107,182	208,645
2021/ 2020	39,653	65,257
2020/ 2019	41,903	15,086
2019/ 2018	8,108	12,281
2018/ 2017	7,675	7,311
Prior Periods	8,109	5,507
Revolving	283,912	349,717
Total loan balance	496,542	663,804
Commercial \| Special Mention [Member]
Loans
2022/ 2021	3,020	2,210
2021/ 2020	7,723	512
2020/ 2019	470	219
2019/ 2018	200	764
2018/ 2017	364	243
Prior Periods	177	204
Revolving	18,912	4,024
Total loan balance	30,866	8,176
Commercial \| Substandard [Member]
Loans
2022/ 2021	74	3,709
2021/ 2020	577	930
2020/ 2019	28
2019/ 2018		13
2018/ 2017	8	302
Prior Periods	60	2
Revolving	14,183	4,776
Total loan balance	14,930	9,732
Commercial \| Substandard-Nonaccrual [Member]
Loans
2022/ 2021		595
2021/ 2020	382	442
2020/ 2019	32	37
Prior Periods	77	48
Total loan balance	491	1,122
CRE - Owner Occupied
Loans
2022/ 2021	108,739	172,057
2021/ 2020	160,837	144,499
2020/ 2019	131,059	66,268
2019/ 2018	53,744	58,494
2018/ 2017	46,652	31,657
Prior Periods	103,489	108,473
Revolving	7,721	14,486
Total loan balance	612,241	595,934
CRE - Owner Occupied \| Pass [Member]
Loans
2022/ 2021	107,996	170,504
2021/ 2020	158,793	135,103
2020/ 2019	125,913	65,596
2019/ 2018	53,744	57,017
2018/ 2017	46,652	31,657
Prior Periods	103,077	107,203
Revolving	7,721	14,486
Total loan balance	603,896	581,566
CRE - Owner Occupied \| Special Mention [Member]
Loans
2022/ 2021		568
2021/ 2020	2,044	2,254
2020/ 2019	2,010	672
Prior Periods	399	355
Total loan balance	4,453	3,849
CRE - Owner Occupied \| Substandard [Member]
Loans
2022/ 2021	743	985
2021/ 2020		6,042
2020/ 2019	3,136
2019/ 2018		1,477
Prior Periods	13	889
Total loan balance	3,892	9,393
CRE - Owner Occupied \| Substandard-Nonaccrual [Member]
Loans
2021/ 2020		1,100
Prior Periods		26
Total loan balance		1,126
CRE - Non-Owner Occupied
Loans
2022/ 2021	256,054	374,470
2021/ 2020	352,789	152,634
2020/ 2019	122,777	115,170
2019/ 2018	107,017	45,959
2018/ 2017	15,231	69,258
Prior Periods	166,640	142,767
Revolving	2,897	2,068
Total loan balance	1,023,405	902,326
CRE - Non-Owner Occupied \| Pass [Member]
Loans
2022/ 2021	256,054	374,470
2021/ 2020	352,789	141,404
2020/ 2019	120,090	115,170
2019/ 2018	107,017	45,959
2018/ 2017	15,231	68,125
Prior Periods	160,615	134,454
Revolving	2,897	2,068
Total loan balance	1,014,693	881,650
CRE - Non-Owner Occupied \| Special Mention [Member]
Loans
2021/ 2020		5,388
2018/ 2017		1,133
Prior Periods		3,816
Total loan balance		10,337
CRE - Non-Owner Occupied \| Substandard [Member]
Loans
2021/ 2020		5,842
2020/ 2019	2,687
Prior Periods	6,025	4,497
Total loan balance	8,712	10,339
Land & Construction
Loans
2022/ 2021	105,233	127,203
2021/ 2020	52,120	11,401
2020/ 2019	8,046	4,385
2019/ 2018	2,040
Prior Periods		1,300
Revolving		3,566
Total loan balance	167,439	147,855
Land & Construction \| Pass [Member]
Loans
2022/ 2021	105,233	125,844
2021/ 2020	52,120	11,401
2020/ 2019	8,046	4,385
2019/ 2018	2,040
Prior Periods		1,300
Revolving		3,566
Total loan balance	167,439	146,496
Land & Construction \| Special Mention [Member]
Loans
2022/ 2021		1,359
Total loan balance		1,359
Home Equity
Loans
2021/ 2020	98	84
2020/ 2019	55
2019/ 2018		46
Prior Periods	144	54
Revolving	116,192	109,395
Total loan balance	116,489	109,579
Home Equity \| Pass [Member]
Loans
2019/ 2018		46
Revolving	116,060	106,738
Total loan balance	116,060	106,784
Home Equity \| Special Mention [Member]
Loans
2021/ 2020	98
Revolving		1,931
Total loan balance	98	1,931
Home Equity \| Substandard [Member]
Loans
2020/ 2019	55
Prior Periods	144	54
Revolving	132	726
Total loan balance	331	780
Home Equity \| Substandard-Nonaccrual [Member]
Loans
2021/ 2020		84
Total loan balance		84
Multi-Family
Loans
2022/ 2021	30,763	109,467
2021/ 2020	105,073	27,955
2020/ 2019	27,439	35,127
2019/ 2018	30,435	16,151
2018/ 2017	15,280	16,261
Prior Periods	20,395	13,895
Revolving	70
Total loan balance	229,455	218,856
Multi-Family \| Pass [Member]
Loans
2022/ 2021	30,763	102,535
2021/ 2020	105,073	27,955
2020/ 2019	27,439	30,820
2019/ 2018	30,435	16,151
2018/ 2017	15,280	16,261
Prior Periods	20,395	13,895
Revolving	70
Total loan balance	229,455	207,617
Multi-Family \| Special Mention [Member]
Loans
2022/ 2021		5,804
2020/ 2019		4,307
Total loan balance		10,111
Multi-Family \| Substandard-Nonaccrual [Member]
Loans
2022/ 2021		1,128
Total loan balance		1,128
Residential Mortgage
Loans
2022/ 2021	163,088	360,424
2021/ 2020	300,323	17,875
2020/ 2019	15,109	8,065
2019/ 2018	6,720	3,070
2018/ 2017	2,889	6,015
Prior Periods	20,710	21,211
Total loan balance	508,839	416,660
Residential Mortgage \| Pass [Member]
Loans
2022/ 2021	160,695	360,424
2021/ 2020	300,323	17,875
2020/ 2019	12,553	8,065
2019/ 2018	6,720	3,070
2018/ 2017	2,889	6,015
Prior Periods	19,769	19,967
Total loan balance	502,949	415,416
Residential Mortgage \| Special Mention [Member]
Loans
2022/ 2021	2,393
2020/ 2019	2,556
Prior Periods	725	1,244
Total loan balance	5,674	1,244
Residential Mortgage \| Substandard [Member]
Loans
Prior Periods	216
Total loan balance	216
Consumer and Other
Loans
2022/ 2021	429	506
2021/ 2020	504	2
2020/ 2019		40
2019/ 2018	15	1,426
2018/ 2017	1,379	14
Prior Periods	848	1,000
Revolving	13,445	13,756
Total loan balance	16,620	16,744
Consumer and Other \| Pass [Member]
Loans
2022/ 2021	429	491
2021/ 2020	504	2
2020/ 2019		40
2019/ 2018	15	1,426
2018/ 2017	1,379	14
Prior Periods	848	1,000
Revolving	13,320	13,756
Total loan balance	16,495	16,729
Consumer and Other \| Special Mention [Member]
Loans
Revolving	125
Total loan balance	125
Consumer and Other \| Substandard [Member]
Loans
2022/ 2021		15
Total loan balance		15
Risk Grades [Member]
Loans
2022/ 2021	774,582	1,359,286
2021/ 2020	1,020,079	421,591
2020/ 2019	346,918	244,397
2019/ 2018	208,279	138,204
2018/ 2017	89,478	131,061
Prior Periods	320,649	294,461
Revolving	457,332	501,788
Total loan balance	3,217,317	3,090,788
Risk Grades [Member] \| Pass [Member]
Loans
2022/ 2021	768,352	1,342,913
2021/ 2020	1,009,255	398,997
2020/ 2019	335,944	239,162
2019/ 2018	208,079	135,950
2018/ 2017	89,106	129,383
Prior Periods	312,813	283,326
Revolving	423,980	490,331
Total loan balance	3,147,529	3,020,062
Risk Grades [Member] \| Special Mention [Member]
Loans
2022/ 2021	5,413	9,941
2021/ 2020	9,865	8,154
2020/ 2019	5,036	5,198
2019/ 2018	200	764
2018/ 2017	364	1,376
Prior Periods	1,301	5,619
Revolving	19,037	5,955
Total loan balance	41,216	37,007
Risk Grades [Member] \| Substandard [Member]
Loans
2022/ 2021	817	4,709
2021/ 2020	577	12,814
2020/ 2019	5,906
2019/ 2018		1,490
2018/ 2017	8	302
Prior Periods	6,458	5,442
Revolving	14,315	5,502
Total loan balance	28,081	30,259
Risk Grades [Member] \| Substandard-Nonaccrual [Member]
Loans
2022/ 2021		1,723
2021/ 2020	382	1,626
2020/ 2019	32	37
Prior Periods	77	74
Total loan balance	$ 491	$ 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 ($)	Sep. 30, 2022	Dec. 31, 2021
Business Assets
Financing Receivable, Recorded Investment, Past Due [Line Items]
Collateral dependent loans	$ 354,000	$ 1,028,000

Loans and Allowance for Cred_10

Loans and Allowance for Credit Losses on Loans - Troubled Debt Restructurings (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Loans and Allowance for Credit Losses on Loans
Recorded investment of troubled debt restructurings	$ 52,000	$ 500,000
Troubled debt restructurings, nonaccrual loans		372,000
Troubled debt restructurings, accruing loans		128,000
Specific reserves	$ 0	$ 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	9 Months Ended
	Sep. 30, 2021 loan	Sep. 30, 2022 loan	Sep. 30, 2021 USD ($) item
Troubled Debt Restructurings by Class
Number of loans modified as troubled debt restructurings during the period	1	0	1
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 \| item			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	9 Months Ended
	Sep. 30, 2022	Sep. 30, 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

Goodwill and Other Intangible_3

Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Dec. 31, 2021	Sep. 30, 2021
Goodwill
Goodwill	$ 167,631	$ 167,631	$ 167,631
BVF/CSNK
Goodwill
Goodwill acquired	13,044
Focus
Goodwill
Goodwill acquired	32,619
Tri Valley Bank
Goodwill
Goodwill acquired	13,819
United American Bank
Goodwill
Goodwill acquired	24,271
Presidio bank
Goodwill
Goodwill acquired	83,878
Banking
Goodwill
Goodwill	154,587	154,587	154,587
Factoring
Goodwill
Goodwill	$ 13,044	$ 13,044	$ 13,044

Goodwill and Other Intangible_4

Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Other Intangible Assets
Gross Carrying amount	$ 27,033	$ 27,033
Accumulated Amortization	(15,341)	(13,365)
Total	11,692	13,668
Core deposit
Other Intangible Assets
Gross Carrying amount	25,023	25,023
Accumulated Amortization	(13,817)	(11,982)
Total	11,206	13,041
Below/ (Above) market-value lease
Other Intangible Assets
Gross Carrying amount	110	110
Accumulated Amortization	(21)	(22)
Total	89	88
Customer relationship and brokered relationship
Other Intangible Assets
Gross Carrying amount	1,900	1,900
Accumulated Amortization	(1,503)	(1,361)
Total	$ 397	$ 539

Goodwill and Other Intangible_5

Goodwill and Other Intangible Assets - Estimated Amortization Expense (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Estimated Amortization Expense
2022 remaining	$ 659
2023	2,405
2024	2,187
2025	1,813
2026	1,530
2027	1,456
Thereafter	1,642
Total	11,692	$ 13,668
Core deposit
Estimated Amortization Expense
2022 remaining	612
2023	2,217
2024	2,023
2025	1,795
2026	1,512
2027	1,438
Thereafter	1,609
Total	11,206	13,041
Customer relationship and brokered relationship
Estimated Amortization Expense
2022 remaining	48
2023	190
2024	159
Total	397	539
Below/ (Above) market-value lease
Estimated Amortization Expense
2022 remaining	(1)
2023	(2)
2024	5
2025	18
2026	18
2027	18
Thereafter	33
Total	$ 89	$ 88

Goodwill and Other Intangible_6

Goodwill and Other Intangible Assets - Impairment of Intangible Assets (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 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	Sep. 30, 2022	Dec. 31, 2021
Net deferred tax assets
Net deferred tax assets	$ 33,021	$ 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	Sep. 30, 2022	Dec. 31, 2021
Income Taxes
Low income housing investments	$ 3,748	$ 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	Sep. 30, 2022 USD ($)
Future Commitments
2022	$ 55,000
2023 through 2025	$ 513,000

Income Taxes - Components of Lo

Income Taxes - Components of Low Income Housing Investment (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Taxes
Low income housing tax credits	$ 210,000	$ 210,000	$ 630,000	$ 630,000
Low income housing investment expense	$ 211,000	$ 209,000	$ 632,000	$ 627,000

Benefit Plans - Defined Benefit

Benefit Plans - Defined Benefit Plans - Components of Pension Cost (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Supplemental Retirement Plan
Components of net periodic benefit cost:
Service cost	$ 87	$ 120	$ 261	$ 360
Interest cost	216	190	648	570
Amortization of prior service cost				100
Amortization of net actuarial loss	114	136	342	408
Net periodic benefit cost	417	446	1,251	1,438
Defined Benefit Plan, Assets for Plan Benefits	0		0
Split-Dollar Life Insurance Benefit Plan
Components of net periodic benefit cost:
Amortization of prior transition obligation and actuarial losses	(10)	(1)	(31)	(3)
Interest cost	62	54	185	164	$ 219
Net periodic benefit cost	$ 52	$ 53	$ 154	$ 161

Benefit Plans - Defined Benef_2

Benefit Plans - Defined Benefit Plans - Change in Projected Benefit Obligation (Details) - Split-Dollar Life Insurance Benefit Plan - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 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	$ 54	185	$ 164	219
Actuarial loss					(664)
Projected benefit obligation at end of period	$ 9,429		$ 9,429		$ 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	Sep. 30, 2022	Dec. 31, 2021
Amounts Recognized in Accumulated Other Comprehensive Loss
Net actuarial loss	$ 4,699	$ 4,601
Prior transition obligation	812	879
Accumulated other comprehensive loss	$ 5,511	$ 5,480

Fair Value - Financial Assets a

Fair Value - Financial Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	$ 478,534	$ 102,252
U.S. Treasury
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	405,389
Agency mortgage-backed securities
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	73,145	102,252
Recurring basis
Financial Assets and Liabilities Measured on a Recurring Basis
I/O strip receivables	171	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 \| U.S. Treasury
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	405,389
Recurring basis \| Agency mortgage-backed securities
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	73,145	102,252
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	405,389
Recurring basis \| Significant Other Observable Inputs (Level 2)
Financial Assets and Liabilities Measured on a Recurring Basis
I/O strip receivables	171	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	$ 73,145	$ 102,252

Fair Value - Impaired Loans Hel

Fair Value - Impaired Loans Held-for-investment - Additional Disclosures (Details) - USD ($) $ in Thousands	Sep. 30, 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 ($)	Sep. 30, 2022	Dec. 31, 2021
Assets
Securities available-for-sale	$ 478,534,000	$ 102,252,000
Securities held-to-maturity, net	593,610,000	657,649,000
Federal Home Loan Bank, Federal Reserve Bank stock and other investments, at cost	32,517,000	32,504,000
Liabilities
Subordinated debt	39,312,000	39,925,000
Carrying Amounts
Assets
Cash and cash equivalents	681,751,000	1,306,216,000
Securities available-for-sale	478,534,000	102,252,000
Securities held-to-maturity, net	703,794,000	658,397,000
Loans (including loans held-for-sale), net	3,171,633,000	3,046,403,000
Federal Home Loan Bank, Federal Reserve Bank stock and other investments, at cost	32,517,000	32,504,000
Accrued interest receivable	14,348,000	10,781,000
I/O strips receivables	171,000	221,000
Liabilities
Time deposits	131,460,000	139,834,000
Other deposits	4,551,805,000	4,619,578,000
Subordinated debt	39,312,000	39,925,000
Accrued interest payable	960,000	477,000
Balance
Assets
Cash and cash equivalents	681,751,000	1,306,216,000
Securities available-for-sale	478,534,000	102,252,000
Securities held-to-maturity, net	593,610,000	657,649,000
Loans (including loans held-for-sale), net	3,024,974,000	3,063,925,000
Accrued interest receivable	14,348,000	10,781,000
I/O strips receivables	171,000	221,000
Liabilities
Time deposits	131,643,000	140,086,000
Other deposits	4,551,805,000	4,619,578,000
Subordinated debt	36,945,000	40,425,000
Accrued interest payable	960,000	477,000
Balance \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets
Cash and cash equivalents	681,751,000	1,306,216,000
Securities available-for-sale	405,389,000
Accrued interest receivable	1,683,000
Balance \| Significant Other Observable Inputs (Level 2)
Assets
Securities available-for-sale	73,145,000	102,252,000
Securities held-to-maturity, net	593,610,000	657,649,000
Loans (including loans held-for-sale), net	2,081,000	2,367,000
Accrued interest receivable	2,334,000	1,719,000
I/O strips receivables	171,000	221,000
Liabilities
Time deposits	131,643,000	140,086,000
Other deposits	4,551,805,000	4,619,578,000
Subordinated debt	36,945,000	40,425,000
Accrued interest payable	960,000	477,000
Balance \| Significant Unobservable Inputs (Level 3)
Assets
Loans (including loans held-for-sale), net	3,022,893,000	3,061,558,000
Accrued interest receivable	$ 10,331,000	$ 9,062,000

Equity Plan - General Disclosur

Equity Plan - General Disclosures (Details) - shares	9 Months Ended
Equity Plan - General Disclosures (Details) - shares	Sep. 30, 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	1,426,575
Options
Equity Plan
Vesting period	4 years
Expiration term	10 years
Nonqualified stock options
Equity Plan
Number of equity awards issued (in shares)	372,000

Equity Plan - Stock Option Acti

Equity Plan - Stock Option Activity (Details) - Options	9 Months Ended
Equity Plan - Stock Option Activity (Details) - Options	Sep. 30, 2022 USD ($) $ / shares shares	Sep. 30, 2021 $ / shares
Number of Shares
Outstanding at the beginning of the period (in shares)	2,584,632
Granted (in shares)	372,000
Exercised (in shares)	150,652
Forfeited or expired (in shares)	(91,175)
Outstanding at the end of the period (in shares)	2,714,805
Vested or expected to vest (in shares)	2,551,917
Exercisable at the end of the period (in shares)	2,011,447
Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share) \| $ / shares	$ 10
Granted (in dollars per share) \| $ / shares		$ 11.03
Exercised (in dollars per share) \| $ / shares	5.77
Forfeited or expired (in dollars per share) \| $ / shares	12.26
Outstanding at the end of the period (in dollars per share) \| $ / shares	$ 10.30
Additional Information
Weighted Average Remaining Contractual Life - Outstanding at the end of the period (in years)	5 years 6 months 10 days
Weighted Average Remaining Contractual Life - Vested or expected to vest (in years)	5 years 6 months 10 days
Weighted Average Remaining Contractual Life - Exercisable at the end of the period (in years)	4 years 4 months 20 days
Aggregate Intrinsic Value - Outstanding at the end of the period (in dollars) \| $	$ 4,998,498
Aggregate Intrinsic Value - Vested or expected to vest (in dollars) \| $	4,698,588
Aggregate Intrinsic Value - Exercisable at the end of the period (in dollars) \| $	$ 4,636,786

Equity Plan - Information Relat

Equity Plan - Information Related to the Equity Plans for each of the Last Three Years (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Information Related to the Equity Plans
Cash received from option exercise	$ 870	$ 1,069
Options
Information Related to the Equity Plans
Intrinsic value of options exercised	719,946	1,103,925
Cash received from option exercise	869,950	1,069,391
Tax benefit (expense) realized from option exercises	$ 53,552	$ 58,208
Weighted average fair value of options granted (in dollars per share)	$ 2.18	$ 2.32

Equity Plan - Unrecognized Comp

Equity Plan - Unrecognized Compensation Cost - Nonvested Awards (Details)	9 Months Ended
	Sep. 30, 2022 USD ($)
Options
Unrecognized Compensation Cost
Total unrecognized compensation cost related to nonvested stock options granted	$ 1,422,000
Expected weighted-average period for recognition of compensation costs related to nonvested stock options	2 years 9 months 14 days
Restricted stock
Unrecognized Compensation Cost
Total unrecognized compensation cost related to nonvested stock options granted	$ 2,456,000
Expected weighted-average period for recognition of compensation costs related to nonvested stock options	2 years 14 days

Equity Plan - Restricted Stock

Equity Plan - Restricted Stock Activity (Details) - Restricted stock	9 Months Ended
	Sep. 30, 2022 $ / shares shares
Number of Shares
Nonvested shares at the beginning of the period (in shares) \| shares	298,566
Granted (in shares) \| shares	238,811
Vested (in shares) \| shares	(252,081)
Forfeited or expired (in shares) \| shares	(12,506)
Nonvested shares at the end of the period (in shares) \| shares	272,790
Weighted Average Grant Date Fair Value
Nonvested shares at the beginning of the period (in dollars per share) \| $ / shares	$ 11.03
Granted (in dollars per share) \| $ / shares	11.16
Vested (in dollars per share) \| $ / shares	11.81
Forfeited or expired (in dollars per share) \| $ / shares	10.93
Nonvested shares at the end of the period (in dollars per share) \| $ / shares	$ 11.05

Subordinated Debt (Details)

Subordinated Debt (Details) - USD ($)	May 26, 2017	Sep. 30, 2022	Jun. 01, 2022	May 11, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Subordinated debt, net of issuance costs		$ 39,312,000			$ 39,925,000
Sub Debt Due 2032
Debt Instrument [Line Items]
Principal amount				$ 40,000,000
Fixed interest rate (as a percent)				5%
Subordinated debt, net of issuance costs		39,312,000
Debt Issuance Costs		$ 688,000
Sub Debt Due 2027
Debt Instrument [Line Items]
Principal amount	$ 40,000,000		$ 40,000,000	$ 40,000,000
Fixed interest rate (as a percent)	5.25%			5.25%
Redemption price	100%
Accrued and unpaid interest	$ 1,100,000

Capital Requirements - General

Capital Requirements - General Information (Details)		9 Months Ended	12 Months Ended
Capital Requirements - General Information (Details)	Mar. 27, 2020	Sep. 30, 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%
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%
2023
Capital Requirements
Percentage of impact on allowances for credit losses on delayed adoption of CECL standard		50%
2024
Capital Requirements
Percentage of impact on allowances for credit losses on delayed adoption of CECL standard		25%
HBC
Capital Requirements
Capital conservation buffer (as a percent)		2.50%	2.50%

Capital Requirements - Tabular

Capital Requirements - Tabular Disclosure (Details) $ in Thousands	Sep. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)
Total Capital (to risk-weighted assets)
Actual, Amount	$ 538,072	$ 506,209
Required For Capital Adequacy Purposes, Amount	$ 388,764	$ 369,711
Actual, Ratio (as a percent)	0.145	0.144
Required For Capital Adequacy Purposes, Ratio (as a percent)	0.105	0.105
Tier 1 Capital (to risk-weighted assets)
Actual, Amount	$ 459,504	$ 433,488
Required For Capital Adequacy Purposes, Amount	$ 314,714	$ 299,290
Actual, Ratio (as a percent)	0.124	0.123
Required For Capital Adequacy Purposes, Ratio (as a percent)	0.085	0.085
Common Equity Tier 1 Capital (to risk-weighted assets)
Actual, Amount	$ 459,504	$ 433,488
Required For Capital Adequacy Purposes, Amount	$ 259,176	$ 246,474
Actual, Ratio (as a percent)	12.40%	12.30%
Required For Capital Adequacy Purposes, Ratio (as a percent)	7%	7%
Tier 1 Capital (to average assets)
Actual, Amount	$ 459,504	$ 433,488
Required For Capital Adequacy Purposes, Amount	$ 211,506	$ 220,193
Actual, Ratio (as a percent)	0.087	0.079
Required For Capital Adequacy Purposes, Ratio (as a percent)	0.040	0.040
HBC
Total Capital (to risk-weighted assets)
Actual, Amount	$ 516,460	$ 484,382
To Be Well Capitalized Under Regulatory Requirements, Amount	370,032	351,839
Required For Capital Adequacy Purposes, Amount	$ 388,534	$ 369,431
Actual, Ratio (as a percent)	0.140	0.138
To Be Well Capitalized Under Regulatory Requirements, Ratio (as a percent)	0.100	0.100
Required For Capital Adequacy Purposes, Ratio (as a percent)	0.105	0.105
Tier 1 Capital (to risk-weighted assets)
Actual, Amount	$ 477,203	$ 451,586
To Be Well Capitalized Under Regulatory Requirements, Amount	296,026	281,471
Required For Capital Adequacy Purposes, Amount	$ 314,527	$ 299,063
Actual, Ratio (as a percent)	0.129	0.128
To Be Well Capitalized Under Regulatory Requirements, Ratio (as a percent)	0.080	0.080
Required For Capital Adequacy Purposes, Ratio (as a percent)	0.085	0.085
Common Equity Tier 1 Capital (to risk-weighted assets)
Actual, Amount	$ 477,203	$ 451,586
To Be Well Capitalized Under Regulatory Requirements, Amount	240,521	228,695
Required For Capital Adequacy Purposes, Amount	$ 259,022	$ 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%	7%
Tier 1 Capital (to average assets)
Actual, Amount	$ 477,203	$ 451,586
To Be Well Capitalized Under Regulatory Requirements, Amount	264,272	275,109
Required For Capital Adequacy Purposes, Amount	$ 211,417	$ 220,087
Actual, Ratio (as a percent)	0.090	0.082
To Be Well Capitalized Under Regulatory Requirements, Ratio (as a percent)	0.050	0.050
Required For Capital Adequacy Purposes, Ratio (as a percent)	0.040	0.040

Capital Requirements - Dividend

Capital Requirements - Dividends to Parent (Details) - USD ($)	3 Months Ended			9 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2022	Dec. 31, 2021
Cash dividend
Subordinated Debt.	$ 39,312,000			$ 39,312,000	$ 39,925,000
HBC
Cash dividend
Cash dividend available	25,140,000			25,140,000
Dividends paid to parent company	$ 8,000,000	$ 8,000,000	$ 8,000,000	$ 24,000,000

Commitments and Loss Continge_3

Commitments and Loss Contingencies - Financial Instruments with Off-Balance Sheet Risk (Details)		3 Months Ended		9 Months Ended		12 Months Ended
	Oct. 26, 2021 USD ($)	Sep. 30, 2021 USD ($)	Jun. 30, 2021 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)	Oct. 31, 2021 item
Commitments and Contingencies
Reserve for legal settlement		$ 500,000	$ 4,000,000		$ 4,500,000
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				$ 106,712,000		$ 122,155,000
Commitments to extend credit, variable rate				1,056,507,000		1,028,656,000
Commitment to extend credit, total				$ 1,163,219,000		$ 1,150,811,000
Percentage of unused commitments to outstanding gross loans				36%		37%
Increase (decrease) to the allowance for credit losses on loans				$ 2,000
Off-balance sheet, credit loss liability increase due to offsetting increase in loss factors in CECL model				817,000		$ 815,000
Unused lines of credit and commitments to make loans
Commitments and Contingencies
Commitments to extend credit, fixed rate				102,770,000		119,071,000
Commitments to extend credit, variable rate				1,049,501,000		1,015,588,000
Commitment to extend credit, total				1,152,271,000		1,134,659,000
Standby letters of credit
Commitments and Contingencies
Commitments to extend credit, fixed rate				3,942,000		3,084,000
Commitments to extend credit, variable rate				7,006,000		13,068,000
Commitment to extend credit, total				$ 10,948,000		$ 16,152,000

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Revenue Recognition (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Disaggregation of Revenue [Line Items]
Non-interest Income In-scope of Topic 606	$ 1,360	$ 584	$ 2,839	$ 1,844
Non-interest Income Out-of-scope of Topic 606	1,421	1,824	4,500	5,034
Total noninterest income	2,781	2,408	7,339	6,878
Service charges and fees on deposit accounts
Disaggregation of Revenue [Line Items]
Non-interest Income In-scope of Topic 606	$ 1,360	$ 584	$ 2,839	$ 1,844
Revenue, Product and Service [Extensible List]	Service charges and fees on deposit accounts	Service charges and fees on deposit accounts	Service charges and fees on deposit accounts	Service charges and fees on deposit accounts

Noninterest Expense (Details)

Noninterest Expense (Details) - USD ($)	3 Months Ended			9 Months Ended
Noninterest Expense (Details) - USD ($)	Sep. 30, 2022	Sep. 30, 2021	Jun. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Noninterest Expense
Salaries and employee benefits	$ 14,119,000	$ 12,461,000		$ 41,416,000	$ 38,991,000
Occupancy and equipment	2,415,000	2,151,000		7,129,000	6,672,000
Insurance expense	1,361,000	949,000		3,447,000	2,273,000
Professional fees	1,230,000	1,211,000		3,601,000	4,701,000
Amortization of intangible assets	659,000	754,000		1,976,000	2,241,000
Data processing	562,000	507,000		1,894,000	1,624,000
Reserve for litigation		500,000	$ 4,000,000		4,500,000
Other	3,553,000	3,298,000		10,878,000	9,848,000
Total noninterest expense	$ 23,899,000	$ 21,831,000		$ 70,341,000	$ 70,850,000

Leases (Details)

Leases (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Leases (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Leases
Lessee, Operating Lease, Option to renew			true
Operating Lease Cost (Cost resulting from lease payments)	$ 1,691	$ 1,621	$ 4,931	$ 4,913
Operating Lease - Operating Cash Flows (Fixed Payments)	1,252	1,432	3,697	3,837
Operating Lease - ROU assets	$ 32,943	$ 35,707	$ 32,943	$ 35,707
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Interest Receivable and Other Assets	Interest Receivable and Other Assets	Interest Receivable and Other Assets	Interest Receivable and Other Assets
Operating Lease - Liabilities	$ 32,943	$ 35,707	$ 32,943	$ 35,707
Operating Lease, Liability, Statement of Financial Position [Extensible List]	Accrued Interest Payable and Other Liabilities	Accrued Interest Payable and Other Liabilities	Accrued Interest Payable and Other Liabilities	Accrued Interest Payable and Other Liabilities
Weighted Average Lease Term - Operating Leases	6 years 10 months 9 days	7 years 7 months 2 days	6 years 10 months 9 days	7 years 7 months 2 days
Weighted Average Discount Rate - Operating Leases	4.44%	4.48%	4.44%	4.48%

Leases - Maturity Analysis (Det

Leases - Maturity Analysis (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
Operating Lease Payments Due
2022 remaining	$ 1,562
2023	5,964
2024	5,636
2025	5,233
2026	4,671
Thereafter	15,479
Total undiscounted cash flows	38,545
Discount on cash flows	(5,602)
Total lease liability	$ 32,943	$ 35,707

Business Segment Information -

Business Segment Information - Business Segments (Details)	9 Months Ended
Business Segment Information - Business Segments (Details)	Sep. 30, 2022 segment
Business Segment Information
Number of business segments	2
Focus
Business Segment Information
Number of business segments	2

Business Segment Information _2

Business Segment Information - Operating Statements (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Operating Income
Interest income	$ 50,174			$ 39,907			$ 133,636	$ 113,300
Total interest expense	2,133			1,725			5,495	5,284
Net interest income	48,041			38,182			128,141	108,016
Provision for (recapture of) credit losses on loans	1,006			(514)			258	(2,519)
Net interest income after provision	47,035			38,696			127,883	110,535
Noninterest income	2,781			2,408			7,339	6,878
Noninterest expense	23,899			21,831			70,341	70,850
Income before income taxes	25,917			19,273			64,881	46,563
Income tax expense	7,848			5,555			19,125	12,828
Net income	18,069	$ 14,821	$ 12,866	13,718	$ 8,813	$ 11,204	45,756	33,735
Total assets	5,431,262			5,463,002			5,431,262	5,463,002	$ 5,499,409
Loans, net of deferred fees	3,216,473			2,832,859			3,216,473	2,832,859	3,087,326
Goodwill	167,631			167,631			167,631	167,631	167,631
Banking
Operating Income
Interest income	46,973			37,093			124,513	105,064
Intersegment interest allocations	329			219			887	632
Total interest expense	2,133			1,725			5,495	5,284
Net interest income	45,169			35,587			119,905	100,412
Provision for (recapture of) credit losses on loans	1,126			(588)			259	(2,537)
Net interest income after provision	44,043			36,175			119,646	102,949
Noninterest income	2,677			2,313			7,049	6,522
Noninterest expense	22,216			20,428			65,542	66,656
Intersegment expense allocations	128			69			370	302
Income before income taxes	24,632			18,129			61,523	43,117
Income tax expense	7,468			5,217			18,132	11,809
Net income	17,164			12,912			43,391	31,308
Total assets	5,355,212			5,392,948			5,355,212	5,392,948
Loans, net of deferred fees	3,155,923			2,776,114			3,155,923	2,776,114
Goodwill	154,587			154,587			154,587	154,587	154,587
Factoring
Operating Income
Interest income	3,201			2,814			9,123	8,236
Intersegment interest allocations	(329)			(219)			(887)	(632)
Net interest income	2,872			2,595			8,236	7,604
Provision for (recapture of) credit losses on loans	(120)			74			(1)	18
Net interest income after provision	2,992			2,521			8,237	7,586
Noninterest income	104			95			290	356
Noninterest expense	1,683			1,403			4,799	4,194
Intersegment expense allocations	(128)			(69)			(370)	(302)
Income before income taxes	1,285			1,144			3,358	3,446
Income tax expense	380			338			993	1,019
Net income	905			806			2,365	2,427
Total assets	76,050			70,054			76,050	70,054
Loans, net of deferred fees	60,550			56,745			60,550	56,745
Goodwill	$ 13,044			$ 13,044			$ 13,044	$ 13,044	$ 13,044

Subsequent Events (Details)

Subsequent Events (Details) - $ / shares		3 Months Ended
Subsequent Events (Details) - $ / shares	Oct. 27, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021
Subsequent Event [Line Items]
Quarterly cash dividends declared to holders of common stock		$ 0.13	$ 0.13	$ 0.13	$ 0.13	$ 0.13	$ 0.13
Subsequent event
Subsequent Event [Line Items]
Quarterly cash dividends declared to holders of common stock	$ 0.13