Heritage Commerce (HTBK) 10-Q4 Aug 232023 Q2 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2023	Aug. 01, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
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		61,091,155
Document Fiscal Year Focus	2023
Entity Central Index Key	0001053352
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Assets
Cash and due from banks	$ 42,551,000	$ 27,595,000
Other investments and interest-bearing deposits in other financial institutions	468,951,000	279,008,000
Total cash and cash equivalents	511,502,000	306,603,000
Securities available-for-sale, at fair value	486,058,000	489,596,000
Securities held-to-maturity, at amortized cost, net of allowance for credit losses of $13 at June 30, 2023 and $14 at December 31, 2022 (fair value of $585,771 at June 30, 2023 and $614,452 at December 31, 2022)	682,095,000	714,990,000
Loans held-for-sale - SBA, at lower of cost or fair value, including deferred costs	3,136,000	2,456,000
Loans, net of deferred fees	3,288,784,000	3,298,550,000
Allowance for credit losses on loans	(47,803,000)	(47,512,000)
Loans, net	3,240,981,000	3,251,038,000
Federal Home Loan Bank ("FHLB"), Federal Reserve Bank ("FRB") stock and other investments, at cost	32,531,000	32,522,000
Company-owned life insurance	79,940,000	78,945,000
Premises and equipment, net	9,197,000	9,301,000
Goodwill	167,631,000	167,631,000
Other intangible assets	9,830,000	11,033,000
Accrued interest receivable and other assets	88,936,000	93,465,000
Total assets	5,311,837,000	5,157,580,000
Deposits:
Demand, noninterest-bearing	1,319,844,000	1,736,722,000
Demand, interest-bearing	1,064,638,000	1,196,427,000
Savings and money market	1,075,835,000	1,285,444,000
Time deposits - under $250	44,520,000	32,445,000
Time deposits - $250 and over	171,852,000	108,192,000
ICS/CDARS - interest-bearing demand, money market and time deposits	824,083,000	30,374,000
Total deposits	4,500,772,000	4,389,604,000
Subordinated debt, net of issuance costs	39,425,000	39,350,000
Accrued interest payable and other liabilities	117,970,000	96,170,000
Total liabilities	4,658,167,000	4,525,124,000
Shareholders' equity:
Preferred stock, no par value; 10,000,000 shares authorized; none issued and outstanding at June 30, 2023 and December 31, 2022
Common stock, no par value; 100,000,000 shares authorized; 61,091,155 shares issued and outstanding at June 30, 2023 and 60,852,723 shares issued and outstanding at December 31, 2022	505,075,000	502,923,000
Retained earnings	165,853,000	146,389,000
Accumulated other comprehensive loss	(17,258,000)	(16,856,000)
Total shareholders' equity	653,670,000	632,456,000
Total liabilities and shareholders' equity	$ 5,311,837,000	$ 5,157,580,000

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Securities held-to-maturity
Allowance for credit loss current period	$ 13,000	$ 14,000
Securities held-to-maturity	$ 585,771,000	$ 614,452,000
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	61,091,155	60,852,723
Common stock, shares outstanding	61,091,155	60,852,723

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Interest income:
Loans, including fees	$ 44,028	$ 36,538	$ 88,140	$ 71,639
Securities, taxable	6,982	4,407	14,038	7,851
Securities, exempt from Federal tax	239	271	486	568
Other investments, interest-bearing deposits in other financial institutions and Federal funds sold	7,092	2,340	11,951	3,404
Total interest income	58,341	43,556	114,615	83,462
Interest expense:
Deposits	10,723	1,146	16,624	2,260
Short-term borrowings	787		1,365
Subordinated debt	538	531	1,075	1,102
Total interest expense	12,048	1,677	19,064	3,362
Net interest income before provision for credit losses on loans	46,293	41,879	95,551	80,100
Provision for (recapture of) credit losses on loans	260	(181)	292	(748)
Net interest income after provision for credit losses on loans	46,033	42,060	95,259	80,848
Noninterest income:
Service charges and fees on deposit accounts	$ 901	$ 867	$ 2,644	$ 1,479
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
Increase in cash surrender value of life insurance	$ 502	$ 480	$ 995	$ 960
Gain on sales of SBA loans	199	27	275	183
Servicing income	104	139	235	245
Termination fees		45	11	45
Gain on proceeds from company owned life insurance		27		27
Gain on warrants				637
Other	368	513	680	982
Total noninterest income	2,074	2,098	4,840	4,558
Noninterest expense:
Salaries and employee benefits	13,987	13,476	28,796	27,297
Occupancy and equipment	2,422	2,277	4,822	4,714
Professional fees	1,149	1,291	2,548	2,371
Other	7,433	6,146	14,226	12,060
Total noninterest expense	24,991	23,190	50,392	46,442
Income before income taxes	23,116	20,968	49,707	38,964
Income tax expense	6,713	6,147	14,387	11,277
Net income	$ 16,403	$ 14,821	$ 35,320	$ 27,687
Earnings per common share:
Basic	$ 0.27	$ 0.24	$ 0.58	$ 0.46
Diluted	$ 0.27	$ 0.24	$ 0.58	$ 0.45

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 16,403	$ 14,821	$ 35,320	$ 27,687
Other comprehensive income (loss):
Change in net unrealized holding gains (losses) on available-for-sale securities and I/O strips	(4,089)	(2,724)	(458)	(7,129)
Deferred income taxes	1,187	790	133	2,067
Change in unrealized gains (losses) on securities and I/O strips, net of deferred income taxes	(2,902)	(1,934)	(325)	(5,062)
Change in net pension and other benefit plan liability adjustment	(35)	103	(69)	207
Deferred income taxes	(4)	(33)	(8)	(67)
Change in pension and other benefit plan liability, net of deferred income taxes	(39)	70	(77)	140
Other comprehensive income (loss)	(2,941)	(1,864)	(402)	(4,922)
Total comprehensive income	$ 13,462	$ 12,957	$ 34,918	$ 22,765

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Retained Earnings	Accumulated Other Comprehensive Loss	Total
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				27,687
Other comprehensive loss			(4,922)	(4,922)
Balance at Jun. 30, 2022	$ 499,832	123,310	(15,918)	607,224
Balance (in shares) at Jun. 30, 2022	60,666,794
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
Balance at Dec. 31, 2022	$ 502,923	146,389	(16,856)	632,456
Balance (in shares) at Dec. 31, 2022	60,852,723
Increase (Decrease) in Shareholders' Equity
Net income		18,917		18,917
Other comprehensive loss			2,539	2,539
Amortization of restricted stock awards, net of forfeitures and taxes	$ 382			382
Cash dividend declared		(7,916)		(7,916)
Stock option expense, net of forfeitures and taxes	147			147
Stock options exercised	$ 683			683
Stock options exercised (in shares)	95,884
Balance at Mar. 31, 2023	$ 504,135	157,390	(14,317)	647,208
Balance (in shares) at Mar. 31, 2023	60,948,607
Balance at Dec. 31, 2022	$ 502,923	146,389	(16,856)	632,456
Balance (in shares) at Dec. 31, 2022	60,852,723
Increase (Decrease) in Shareholders' Equity
Net income				35,320
Other comprehensive loss			(402)	(402)
Balance at Jun. 30, 2023	$ 505,075	165,853	(17,258)	653,670
Balance (in shares) at Jun. 30, 2023	61,091,155
Balance at Mar. 31, 2023	$ 504,135	157,390	(14,317)	647,208
Balance (in shares) at Mar. 31, 2023	60,948,607
Increase (Decrease) in Shareholders' Equity
Net income		16,403		16,403
Other comprehensive loss			(2,941)	(2,941)
Issuance of restricted stock awards, net (in shares)	65,446
Amortization of restricted stock awards, net of forfeitures and taxes	$ 376			376
Cash dividend declared		(7,940)		(7,940)
Restricted stock units ("RSUs") and performance-based restricted stock units ("PRSUs") expense, net of taxes	96			96
Stock option expense, net of forfeitures and taxes	154			154
Stock options exercised	$ 314			314
Stock options exercised (in shares)	77,102
Balance at Jun. 30, 2023	$ 505,075	$ 165,853	$ (17,258)	$ 653,670
Balance (in shares) at Jun. 30, 2023	61,091,155

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
Cash dividend declared per share (in dollars per share)	$ 0.13	$ 0.13	$ 0.13	$ 0.13

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 35,320	$ 27,687
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of premiums and accretion of discounts on securities	(2,542)	910
Gain on sale of SBA loans	(275)	(183)
Proceeds from sale of SBA loans originated for sale	3,897	2,452
SBA loans originated for sale	(4,303)	(2,663)
Provision for (recapture of) credit losses on loans	292	(748)
Increase in cash surrender value of life insurance	(995)	(960)
Depreciation and amortization	546	568
Amortization of other intangible assets	1,203	1,317
Stock option expense, net	301	293
RSUs and PRSUs expense	96
Amortization of restricted stock awards, net	758	995
Amortization of subordinated debt issuance costs	75	96
Gain on proceeds from company-owned life insurance		(27)
Effect of changes in:
Accrued interest receivable and other assets	744	1,954
Accrued interest payable and other liabilities	25,629	(5,159)
Net cash provided by operating activities	60,746	26,532
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of securities available-for-sale		(250,997)
Purchase of securities held-to-maturity		(119,447)
Maturities/paydowns/calls of securities available-for-sale	6,176	14,056
Maturities/paydowns/calls of securities held-to-maturity	32,354	53,201
Purchase of mortgage loans		(74,544)
Net change in loans	9,765	82,846
Changes in FHLB stock and other investments	(9)	(9)
Proceeds from redemption of company-owned life insurance		604
Purchase of premises and equipment	(442)	(522)
Net cash provided by (used in) investing activities	47,844	(294,812)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net change in deposits	111,168	(145,768)
Exercise of stock options	997	849
Payment of cash dividends	(15,856)	(15,706)
Redemption of subordinated debt		(40,000)
Issuance of subordinated debt, net of issuance costs		39,274
Net cash provided by (used in) financing activities	96,309	(161,351)
Net increase (decrease) in cash and cash equivalents	204,899	(429,631)
Cash and cash equivalents, beginning of period	306,603	1,306,216
Cash and cash equivalents, end of period	511,502	876,585
Supplemental disclosures of cash flow information:
Interest paid	17,280	3,321
Income taxes paid, net	65	12,153
Supplemental schedule of non-cash activity:
Recording of right to use assets in exchange for lease obligations	$ 541
Transfer of loans held-for-sale to loan portfolio		$ 480

Basis of Presentation

Basis of Presentation	6 Months Ended
Basis of Presentation	Jun. 30, 2023
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, 2022. 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 accordance with the accounting principles generally accepted in the United States (“U.S. GAAP”) requires management to make a number of judgments, estimates and assumptions that affect the reported amount of assets, liabilities, income and expense in the financial statements. Various elements of our accounting policies, by their nature, involve the application of highly sensitive and judgmental estimates and assumptions. Some of these policies and estimates relate to matters that are highly complex and contain inherent uncertainties. 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 possible that, in some instances, different estimates and assumptions could reasonably have been made and used by management, instead of those we applied, which might have produced different results that could have had a material effect on the financial statements. The results for the three months and six months ended June 30, 2023 are not necessarily indicative of the results expected for any subsequent period or for the entire year ending December 31, 2023. Reclassifications Certain reclassifications of prior year balances have been made to conform to the current year presentation. These reclassifications had no impact on the Company’s consolidated financial position, results of operations or net change in cash and cash equivalents. Adoption of New Accounting Standards In March 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2022-02 Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings 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. The Company adopted the guidance of ASU 2022-02 on January 1, 2023 and the amendments were applied prospectively. The adoption of this new guidance did not impact the financial position or results of operations. 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 - - . - , ,

Earnings Per Share

Earnings Per Share	6 Months Ended
Earnings Per Share	Jun. 30, 2023
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. Unvested restricted stock units are not considered participating securities and as a result are not considered outstanding under the two class method of computing basic earnings per common share. weighted average stock options outstanding for the three months and six months ended June 30, 2023, respectively, considered to be antidilutive and excluded from the computation of diluted earnings per share. There were and Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (Dollars in thousands, except per share amounts) Net income $ 16,403 $ 14,821 $ 35,320 $ 27,687 Weighted average common shares outstanding for basic earnings per common share 61,035,435 60,542,170 60,971,828 60,468,027 Dilutive potential common shares 230,624 426,984 270,349 477,684 Shares used in computing diluted earnings per common share 61,266,059 60,969,154 61,242,177 60,945,711 Basic earnings per share $ 0.27 $ 0.24 $ 0.58 $ 0.46 Diluted earnings per share $ 0.27 $ 0.24 $ 0.58 $ 0.45

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss) (AOCI)	6 Months Ended
Accumulated Other Comprehensive Income (Loss) (AOCI)	Jun. 30, 2023
Accumulated Other Comprehensive Income (Loss) ("AOCI")
Accumulated Other Comprehensive Income (Loss) ("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 June 30, 2023 and 2022 Unrealized Gains (Losses) on Available- Defined for-Sale Benefit Securities Pension and I/O Plan Strips Items(1) Total (Dollars in thousands) Beginning balance April 1, 2023, net of taxes $ (8,817) $ (5,500) $ (14,317) Other comprehensive income (loss) before reclassification, net of taxes (2,902) (14) (2,916) Amounts reclassified from other comprehensive income (loss), net of taxes — (25) (25) Net current period other comprehensive income (loss), net of taxes (2,902) (39) (2,941) Ending balance June 30, 2023, net of taxes $ (11,719) $ (5,539) $ (17,258) Beginning balance April 1, 2022, net of taxes $ (975) $ (13,079) $ (14,054) Other comprehensive income (loss) before reclassification, net of taxes (1,934) (3) (1,937) Amounts reclassified from other comprehensive income (loss), net of taxes — 73 73 Net current period other comprehensive income (loss), net of taxes (1,934) 70 (1,864) Ending balance June 30, 2022, net of taxes $ (2,909) $ (13,009) $ (15,918) Six Months Ended June 30, 2023 and 2022 Unrealized Gains (Losses) on Available- Defined for-Sale Benefit Securities Pension and I/O Plan Strips Items(1) Total (Dollars in thousands) Beginning balance January 1, 2023, net of taxes $ (11,394) $ (5,462) $ (16,856) Other comprehensive loss before reclassification, net of taxes (325) (28) (353) Amounts reclassified from other comprehensive income (loss), net of taxes — (49) (49) Net current period other comprehensive income (loss), net of taxes (325) (77) (402) Ending balance June 30, 2023, net of taxes $ (11,719) $ (5,539) $ (17,258) Beginning balance January 1, 2022, net of taxes $ 2,153 $ (13,149) $ (10,996) Other comprehensive income (loss) before reclassification, net of taxes (5,062) (6) (5,068) Amounts reclassified from other comprehensive income (loss), net of taxes — 146 146 Net current period other comprehensive income (loss), net of taxes (5,062) 140 (4,922) Ending balance June 30, 2022, net of taxes $ (2,909) $ (13,009) $ (15,918) (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 June 30, Affected Line Item Where Details About AOCI Components 2023 2022 Net Income is Presented (Dollars in thousands) Amortization of defined benefit pension plan items (1) Prior transition obligation and actuarial losses (2) $ 48 $ 10 Prior service cost and actuarial losses (3) (13) (114) 35 (104) Other noninterest expense (10) 31 Income tax benefit 25 (73) Net of tax Total reclassification from AOCI for the period $ 25 $ (73) Amounts Reclassified from AOCI Six Months Ended June 30, Affected Line Item Where Details About AOCI Components 2023 2022 Net Income is Presented (Dollars in thousands) Amortization of defined benefit pension plan items (1) Prior transition obligation and actuarial losses (2) $ 95 $ 21 Prior service cost and actuarial losses (3) (26) (228) 69 (207) Other noninterest expense (20) 61 Income tax benefit 49 (146) Net of tax Total reclassification from AOCI for the period $ 49 $ (146) (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	6 Months Ended
Securities	Jun. 30, 2023
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 June 30, 2023 Cost Gains (Losses) Losses Value (Dollars in thousands) Securities available-for-sale: U.S. Treasury $ 432,049 $ — $ (10,903) $ — $ 421,146 Agency mortgage-backed securities 70,571 — (5,659) — 64,912 Total $ 502,620 $ — $ (16,562) $ — $ 486,058 Gross Gross Estimated Allowance Amortized Unrecognized Unrecognized Fair for Credit June 30, 2023 Cost Gains (Losses) Value Losses (Dollars in thousands) Securities held-to-maturity: Agency mortgage-backed securities $ 648,337 $ 187 $ (95,472) $ 553,052 $ — Municipals - exempt from Federal tax 33,771 1 (1,053) 32,719 (13) Total $ 682,108 $ 188 $ (96,525) $ 585,771 $ (13) Gross Gross Allowance Estimated Amortized Unrealized Unrealized for Credit Fair December 31, 2022 Cost Gains (Losses) Losses Value (Dollars in thousands) Securities available-for-sale: U.S. Treasury $ 428,797 $ — $ (10,323) $ — $ 418,474 Agency mortgage-backed securities 76,916 — (5,794) — 71,122 Total $ 505,713 $ — $ (16,117) $ — $ 489,596 Gross Gross Estimated Allowance Amortized Unrecognized Unrecognized Fair for Credit December 31, 2022 Cost Gains (Losses) Value Losses (Dollars in thousands) Securities held-to-maturity: Agency mortgage-backed securities $ 677,381 $ 235 $ (99,977) $ 577,639 $ — Municipals - exempt from Federal tax 37,623 9 (819) 36,813 (14) Total $ 715,004 $ 244 $ (100,796) $ 614,452 $ (14) 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 June 30, 2023 Value (Losses) Value (Losses) Value (Losses) (Dollars in thousands) Securities available-for-sale: U.S. Treasury $ 219,581 $ (4,273) $ 201,565 $ (6,630) $ 421,146 $ (10,903) Agency mortgage-backed securities 3,323 (181) 61,589 (5,478) 64,912 (5,659) Total $ 222,904 $ (4,454) $ 263,154 $ (12,108) $ 486,058 $ (16,562) Securities held-to-maturity: Agency mortgage-backed securities $ 17,239 $ (540) $ 523,809 $ (94,932) $ 541,048 $ (95,472) Municipals — exempt from Federal tax 22,946 (672) 5,882 (381) 28,828 (1,053) Total $ 40,185 $ (1,212) $ 529,691 $ (95,313) $ 569,876 $ (96,525) Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2022 Value (Losses) Value (Losses) Value (Losses) (Dollars in thousands) Securities available-for-sale: U.S. Treasury $ 418,474 $ (10,323) $ — $ — $ 418,474 $ (10,323) Agency mortgage-backed securities 71,122 (5,794) — — 71,122 (5,794) Total $ 489,596 $ (16,117) $ — $ — $ 489,596 $ (16,117) Securities held-to-maturity: Agency mortgage-backed securities $ 136,264 $ (12,866) $ 429,257 $ (87,111) $ 565,521 $ (99,977) Municipals — exempt from Federal tax 31,007 (819) — — 31,007 (819) Total $ 167,271 $ (13,685) $ 429,257 $ (87,111) $ 596,528 $ (100,796) 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 June 30, 2023, the Company held The amortized cost and estimated fair values of securities as of June 30, 2023 are shown by contractual maturity below. The expected maturities will differ from contractual maturities if borrowers have the right to call or pre-pay obligations with or without call or pre-payment penalties. Securities not due at a single maturity date are shown separately. Available-for-sale Amortized Estimated Cost Fair Value (Dollars in thousands) Due 3 months or less $ 19,943 $ 19,909 Due after three months through one year 173,446 170,289 Due after one through five years 238,660 230,948 Agency mortgage-backed securities 70,571 64,912 Total $ 502,620 $ 486,058 Held-to-maturity Amortized Estimated Cost Fair Value (Dollars in thousands) Due three months or less $ 555 $ 555 Due after three months through one year 400 399 Due after one through five years 7,219 7,067 Due after five through ten years 25,020 24,135 Due after ten years 577 563 Agency mortgage-backed securities 648,337 553,052 Total $ 682,108 $ 585,771 Securities with amortized cost of $1,071,652,000 and $66,272,000 as of June 30, 2023 and December 31, 2022 were pledged to secure public deposits and for other purposes as required or permitted by law or contract. The increase in pledged securities at Jun 30, 2023 was due to an increase in securities pledged to secure our collateralized lines of credit with the FHLB and FRB. The table below presents a roll-forward by major security type for the six months ended June 30, 2023 of the allowance for credit losses on debt securities held-to-maturity at period end: Municipals (Dollars in thousands) Beginning balance January 1, 2023 $ 14 Provision for (recapture of) credit losses (1) Ending balance June 30, 2023 $ 13 For the six months ended June 30, 2023, the allowance for credit losses on the Company’s held-to-maturity municipal investment securities portfolio decreased ($1,000) to $13,000 . The bond ratings for the Company’s municipal investment securities at June 30, 2023 were consistent with the ratings at December 31, 2022.

Loans and Allowance for Credit

Loans and Allowance for Credit Losses on Loans	6 Months Ended
Loans and Allowance for Credit Losses on Loans	Jun. 30, 2023
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 as economic conditions change. Additionally, management uses qualitative adjustments to the discounted cash flow quantitative loss estimates in certain cases when management has determined an adjustment is necessary. These qualitative adjustments are applied by pooled loan segment and have been added 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 $520,000 of Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”) loans and $60,879,000 of Bay View Funding factored receivables at June 30, 2023, compared to $1,166,000 and $79,263,000, respectively, at December 31, 2022. 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: June 30, December 31, 2023 2022 (Dollars in thousands) Loans held-for-investment: Commercial $ 466,354 $ 533,915 Real estate: CRE - owner occupied 608,031 614,663 CRE - non-owner occupied 1,147,313 1,066,368 Land and construction 162,816 163,577 Home equity 128,009 120,724 Multifamily 244,959 244,882 Residential mortgages 514,064 537,905 Consumer and other 17,635 17,033 Loans 3,289,181 3,299,067 Deferred loan fees, net (397) (517) Loans, net of deferred fees 3,288,784 3,298,550 Allowance for credit losses on loans (47,803) (47,512) Loans, net $ 3,240,981 $ 3,251,038 Changes in the allowance for credit losses on loans were as follows for the periods indicated: Three Months Ended June 30, 2023 CRE CRE Owner Non-owner Land & Home Multi- Residential Consumer Commercial Occupied Occupied Construction Equity Family Mortgages and Other Total (Dollars in thousands) Beginning of period balance $ 6,534 $ 5,453 $ 22,677 $ 3,176 $ 688 $ 4,392 $ 4,196 $ 157 $ 47,273 Charge-offs (24) — — — — — — — (24) Recoveries 108 4 — — 182 — — — 294 Net recoveries 84 4 — — 182 — — — 270 Provision for (recapture of) credit losses on loans (68) 6 846 (306) (140) (9) (67) (2) 260 End of period balance $ 6,550 $ 5,463 $ 23,523 $ 2,870 $ 730 $ 4,383 $ 4,129 $ 155 $ 47,803 Three Months Ended June 30, 2022 CRE CRE Owner Non-owner Land & Home Multi- Residential Consumer Commercial Occupied Occupied Construction Equity Family Mortgages and Other Total (Dollars in thousands) Beginning of period balance $ 6,801 $ 6,397 $ 19,413 $ 2,006 $ 722 $ 2,544 $ 4,757 $ 148 $ 42,788 Charge-offs (355) — — — — — — — (355) Recoveries 79 4 — — 31 — — 3,124 3,238 Net (charge-offs) recoveries (276) 4 — — 31 — — 3,124 2,883 Provision for (recapture of) credit losses on loans 77 (392) 2,061 492 (58) 280 475 (3,116) (181) End of period balance $ 6,602 $ 6,009 $ 21,474 $ 2,498 $ 695 $ 2,824 $ 5,232 $ 156 $ 45,490 Six Months Ended June 30, 2023 CRE CRE Owner Non-owner Land & Home Multi- Residential Consumer Commercial Occupied Occupied Construction Equity Family Mortgages and Other Total (Dollars in thousands) Beginning of period balance $ 6,617 $ 5,751 $ 22,135 $ 2,941 $ 666 $ 3,366 $ 5,907 $ 129 $ 47,512 Charge-offs (158) — — — (246) — — — (404) Recoveries 188 8 — — 207 — — — 403 Net (charge-offs) recoveries 30 8 — — (39) — — — (1) Provision for (recapture of) credit losses on loans (97) (296) 1,388 (71) 103 1,017 (1,778) 26 292 End of period balance $ 6,550 $ 5,463 $ 23,523 $ 2,870 $ 730 $ 4,383 $ 4,129 $ 155 $ 47,803 Six Months Ended June 30, 2022 CRE CRE Owner Non-owner Land & Home Multi- Residential Consumer Commercial Occupied Occupied Construction Equity Family Mortgages 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 (371) — — — — — — — (371) Recoveries 133 7 — — 55 — — 3,124 3,319 Net (charge-offs) recoveries (238) 7 — — 55 — — 3,124 2,948 Provision for (recapture of) credit losses on loans (1,574) (1,952) 4,349 667 (224) 28 1,100 (3,142) (748) End of period balance $ 6,602 $ 6,009 $ 21,474 $ 2,498 $ 695 $ 2,824 $ 5,232 $ 156 $ 45,490 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: June 30, 2023 Nonaccrual Nonaccrual 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 $ — $ 1,306 $ 2,172 $ 3,478 Real estate: CRE - Owner Occupied — — — — CRE - Non-Owner Occupied — — — — Home equity 96 — 90 186 Residential mortgages 1,873 — — 1,873 Total $ 1,969 $ 1,306 $ 2,262 $ 5,537 December 31, 2022 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 $ 318 $ 324 $ 349 $ 991 Real estate: CRE - Owner Occupied — — — — CRE - Non-Owner Occupied — — 1,336 1,336 Home equity 98 — — 98 Total $ 416 $ 324 $ 1,685 $ 2,425 The following tables present the aging of past due loans by class for the periods indicated: June 30, 2023 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 $ 5,009 $ 1,829 $ 3,086 $ 9,924 $ 456,430 $ 466,354 Real estate: CRE - Owner Occupied — — — 608,031 608,031 CRE - Non-Owner Occupied — — — 1,147,313 1,147,313 Land and construction — — — — 162,816 162,816 Home equity — 186 186 127,823 128,009 Multifamily — — — — 244,959 244,959 Residential mortgages 1,297 1,873 3,170 510,894 514,064 Consumer and other — — — — 17,635 17,635 Total $ 5,009 $ 3,126 $ 5,145 $ 13,280 $ 3,275,901 $ 3,289,181 December 31, 2022 30 - 59 60 - 89 90 Days or Days Days Greater Total Past Due Past Due Past Due Past Due Current Total (Dollars in thousands) Commercial $ 7,236 $ 2,519 $ 703 $ 10,458 $ 523,457 $ 533,915 Real estate: CRE - Owner Occupied 252 — — 252 614,411 614,663 CRE - Non-Owner Occupied — — 1,336 1,336 1,065,032 1,066,368 Land and construction — — — — 163,577 163,577 Home equity — 98 — 98 120,626 120,724 Multifamily — — — — 244,882 244,882 Residential mortgages 4,202 720 — 4,922 532,983 537,905 Consumer and other — — — — 17,033 17,033 Total $ 11,690 $ 3,337 $ 2,039 $ 17,066 $ 3,282,001 $ 3,299,067 Past due loans 30 days or greater totaled $13,280,000 and $17,066,000 at June 30, 2023 and December 31, 2022, respectively, of which $2,928,000 and $479,000 were on nonaccrual, at June 30, 2023 and December 31, 2022, respectively. At June 30, 2023, there were also $347,000 of loans less than 30 days past due included in nonaccrual loans held-for-investment. At December 31, 2022, there were also $261,000 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 June 30, 2023 and December 31, 2022. 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 June 30, 2023 and December 31, 2022. 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 Term Loans Amortized Cost Basis by Originated Period as of June 30, 2023 Loans 2018 and Amortized 6/30/2023 12/31/2022 12/31/2021 12/31/2020 12/31/2019 Prior Cost Basis Total (Dollars in thousands) Commercial: Pass $ 92,038 $ 30,515 $ 27,889 $ 17,496 $ 15,062 $ 14,498 $ 242,625 $ 440,123 Special Mention 2,020 1,340 508 — 821 8,525 3,201 16,415 Substandard 4 — 571 — 166 5,599 2,170 8,510 Substandard-Nonaccrual — — 224 — 270 421 391 1,306 Total 94,062 31,855 29,192 17,496 16,319 29,043 248,387 466,354 CRE - Owner Occupied: Pass 17,849 86,777 118,396 73,915 58,862 231,378 11,706 598,883 Special Mention 625 1,581 271 838 — 4,713 — 8,028 Substandard — — — — 1,113 7 — 1,120 Substandard-Nonaccrual — — — — — — — — Total 18,474 88,358 118,667 74,753 59,975 236,098 11,706 608,031 CRE - Non-Owner Occupied: Pass 105,650 238,247 269,055 28,752 98,962 389,217 2,055 1,131,938 Special Mention — — — — — 7,435 — 7,435 Substandard — — — — — 7,716 224 7,940 Substandard-Nonaccrual — — — — — — — — Total 105,650 238,247 269,055 28,752 98,962 404,368 2,279 1,147,313 Land and construction: Pass 19,804 73,869 44,446 13,950 1,918 — — 153,987 Special Mention — — — — 4,217 — — 4,217 Substandard — — 3,666 946 — — — 4,612 Substandard-Nonaccrual — — — — — — — — Total 19,804 73,869 48,112 14,896 6,135 — — 162,816 Home equity: Pass — — — — — 126 120,569 120,695 Special Mention — — — — — — 4,640 4,640 Substandard — — — — — — 2,578 2,578 Substandard-Nonaccrual — — 96 — — — — 96 Total — — 96 — — 126 127,787 128,009 Multifamily: Pass 18,274 41,686 56,697 5,457 42,659 77,645 276 242,694 Special Mention — — — — — — — — Substandard — — — — — 2,265 — 2,265 Substandard-Nonaccrual — — — — — — — — Total 18,274 41,686 56,697 5,457 42,659 79,910 276 244,959 Residential mortgage: Pass 1,195 184,686 285,879 1,053 6,672 30,943 — 510,428 Special Mention — — — — 1,046 516 — 1,562 Substandard — — — — — 201 — 201 Substandard-Nonaccrual — 1,873 — — — — — 1,873 Total 1,195 186,559 285,879 1,053 7,718 31,660 — 514,064 Consumer and other: Pass — 383 8 — — 2,109 15,063 17,563 Special Mention — — 72 — — — — 72 Substandard — — — — — — — — Substandard-Nonaccrual — — — — — — — — Total — 383 80 — — 2,109 15,063 17,635 Total loans $ 257,459 $ 660,957 $ 807,778 $ 142,407 $ 231,768 $ 783,314 $ 405,498 $ 3,289,181 Risk Grades: Pass $ 254,810 $ 656,163 $ 802,370 $ 140,623 $ 224,135 $ 745,916 $ 392,294 $ 3,216,311 Special Mention 2,645 2,921 851 838 6,084 21,189 7,841 42,369 Substandard 4 — 4,237 946 1,279 15,788 4,972 27,226 Substandard-Nonaccrual — 1,873 320 — 270 421 391 3,275 Grand Total $ 257,459 $ 660,957 $ 807,778 $ 142,407 $ 231,768 $ 783,314 $ 405,498 $ 3,289,181 Revolving Loans Term Loans Amortized Cost Basis by Originated Period as of December 31, 2022 Amortized 2022 2021 2020 2019 2018 Prior Periods Cost Basis Total (Dollars in thousands) Commercial: Pass $ 102,969 $ 36,752 $ 24,406 $ 19,272 $ 12,089 $ 21,127 $ 293,546 $ 510,161 Special Mention 3,408 1,060 192 1,123 — 6,031 5,551 17,365 Substandard 4 — — 145 — 102 5,496 5,747 Substandard-Nonaccrual — 279 — — 330 33 — 642 Total 106,381 38,091 24,598 20,540 12,419 27,293 304,593 533,915 CRE - Owner Occupied: Pass 92,689 116,266 75,007 59,887 58,180 194,584 8,758 605,371 Special Mention — 2,033 867 1,120 — 4,410 — 8,430 Substandard — 660 — — 193 9 — 862 Substandard-Nonaccrual — — — — — — — — Total 92,689 118,959 75,874 61,007 58,373 199,003 8,758 614,663 CRE - Non-Owner Occupied: Pass 239,556 278,051 31,848 101,854 63,905 337,048 3,245 1,055,507 Special Mention — — — — — 4,883 — 4,883 Substandard — — — — — 5,978 — 5,978 Substandard-Nonaccrual — — — — — — — — Total 239,556 278,051 31,848 101,854 63,905 347,909 3,245 1,066,368 Land and construction: Pass 62,241 72,847 22,459 6,030 — — — 163,577 Special Mention — — — — — — — — Substandard — — — — — — — — Substandard-Nonaccrual — — — — — — — — Total 62,241 72,847 22,459 6,030 — — — 163,577 Home equity: Pass — — — — — 44 117,950 117,994 Special Mention — — — — — — 2,346 2,346 Substandard — — — — — 144 142 286 Substandard-Nonaccrual — 98 — — — — 98 Total — 98 — — — 188 120,438 120,724 Multifamily: Pass 42,111 69,824 4,871 42,412 15,356 66,380 180 241,134 Special Mention — — 657 771 — 2,320 — 3,748 Substandard — — — — — — — — Substandard-Nonaccrual — — — — — — — — Total 42,111 69,824 5,528 43,183 15,356 68,700 180 244,882 Residential mortgage: Pass 191,907 296,270 1,068 6,788 2,724 33,290 — 532,047 Special Mention — — — 1,058 1,482 2,387 — 4,927 Substandard — — — — — 931 — 931 Substandard-Nonaccrual — — — — — — — — Total 191,907 296,270 1,068 7,846 4,206 36,608 — 537,905 Consumer and other: Pass 389 13 — — 1,364 1,283 13,647 16,696 Special Mention — 82 — 6 — — 249 337 Substandard — — — — — — — — Substandard-Nonaccrual — — — — — — — — Total 389 95 — 6 1,364 1,283 13,896 17,033 Total loans $ 735,274 $ 874,235 $ 161,375 $ 240,466 $ 155,623 $ 680,984 $ 451,110 $ 3,299,067 Risk Grades: Pass $ 731,862 $ 870,023 $ 159,659 $ 236,243 $ 153,618 $ 653,756 $ 437,326 $ 3,242,487 Special Mention 3,408 3,175 1,716 4,078 1,482 20,031 8,146 42,036 Substandard 4 660 — 145 193 7,164 5,638 13,804 Substandard-Nonaccrual — 377 — — 330 33 — 740 Grand Total $ 735,274 $ 874,235 $ 161,375 $ 240,466 $ 155,623 $ 680,984 $ 451,110 $ 3,299,067 The following tables present the gross charge-offs by class of loans and year of origination for the three and six months ended June 30, 2023: Gross Charge-offs by Originated Period for the Three Months Ended June 30, 2023 2018 and Revolving 06/30/2023 12/31/2022 12/31/2021 12/31/2020 12/31/2019 Prior Loans Total (Dollars in thousands) Commercial $ — $ 4 $ — $ — $ — $ 20 $ — $ 24 Real estate: CRE - Owner Occupied — — — — — — — — CRE - Non-Owner Occupied — — — — — — — — Land and construction — — — — — — — — Home equity — — — — — — — — Multifamily — — — — — — — — Residential mortgages — — — — — — — — Consumer and other — — — — — — — — Total $ — $ 4 $ — $ — $ — $ 20 $ — $ 24 Gross Charge-offs by Originated Period for the Six Months Ended June 30, 2023 2018 and Revolving 06/30/2023 12/31/2022 12/31/2021 12/31/2020 12/31/2019 Prior Loans Total (Dollars in thousands) Commercial $ — $ 4 $ — $ — $ 49 $ 105 $ — $ 158 Real estate: CRE - Owner Occupied — — — — — — — — CRE - Non-Owner Occupied — — — — — — —

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	6 Months Ended
Goodwill and Other Intangible Assets	Jun. 30, 2023
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets	6) Goodwill and Other Intangible Assets Goodwill At June 30, 2023, 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's policy is to test goodwill for impairment annually as of November 30, or on an interim basis if an event triggering impairment assessment may have occurred. During the six month period ended June 30, 2023, the economic uncertainty and market volatility resulting from the rising interest rate environment and the recent banking crisis resulted in a decrease in the Company's stock price and market capitalization and a revision of the earnings outlook for the remainder of 2023. Management believed such decreases were a triggering event requiring an interim goodwill impairment analysis. The Company performed a qualitative impairment assessment as of June 30, 2023 to determine whether it was more likely than not that the fair value of its reporting units are less than their carrying amounts. The analysis included analyzing qualitative factors applicable to the Company, the historical and expected financial performance of the Company, and valuation metrics of publicly traded companies comparable to the Company’s only reporting unit. As of June 30, 2023, the Company does not believe that these events or circumstances have significantly altered the long-term financial performance of the Company. Accordingly, it was determined that it is more likely than not that the fair value of the Company exceeds its carrying value as of June 30, 2023. Management continues to monitor economic conditions for applicable changes. As the decrease in the Company's stock prices was one of the drivers of the triggering event requiring an interim goodwill impairment analysis, the rebound in the Company's stock price in June and July 2023 supports management's conclusion that it is more likely than not that the fair value of the Company exceeds its carrying value as of June 30, 2023. However, future events could cause the Company to conclude that the Company’s goodwill has become impaired, which would result in recording an impairment loss. Any resulting impairment loss could have a material adverse impact on the Company’s financial condition and results of operations. Management will continue evaluating the economic conditions at future reporting periods for applicable changes. The following table summarizes the carrying amount of goodwill by segment for the periods indicated: June 30, December 31, 2023 2022 (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: June 30, 2023 Gross Carrying Accumulated Amount Amortization Total (Dollars in thousands) Core deposit intangibles $ 25,023 $ (15,538) $ 9,485 Customer relationship and brokered relationship intangibles 1,900 (1,646) 254 Below market leases 110 (19) 91 Total $ 27,033 $ (17,203) $ 9,830 December 31, 2022 Gross Carrying Accumulated Amount Amortization Total (Dollars in thousands) Core deposit intangibles $ 25,023 $ (14,429) $ 10,594 Customer relationship and brokered relationship intangibles 1,900 (1,551) 349 Below market leases 110 (20) 90 Total $ 27,033 $ (16,000) $ 11,033 As of June 30, 2023, 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) 2023 remaining $ 1,108 95 $ (1) $ 1,202 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 2028 999 — 18 1,017 2029 610 — 15 625 $ 9,485 $ 254 $ 91 $ 9,830 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 June 30, 2023 and December 31, 2022.

Income Taxes

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2023
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 $31,588,000 and $32,176,000, at June 30, 2023 and December 31, 2022, 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 June 30, 2023 and December 31, 2022 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: June 30, December 31, 2023 2022 (Dollars in thousands) Low income housing investments $ 3,166 $ 3,537 Future commitments $ 517 $ 523 The Company expects $27,000 of the future commitments to be paid in 2023, and $490,000 in 2024 through 2026. For tax purposes, the Company had low income housing tax credits of $180,000 and $210,000 for the three months ended June 30, 2023 and 2022, respectively, and low income housing investment expense of $186,000 and $211,000, respectively. For tax purposes, the Company had low income housing tax credit of $360,000 and $420,000 for the six months ended June 30, 2023 and 2022, respectively, and low income housing investment expense of , respectively. The Company recognized low income housing investment expense as a component of income tax expense.

Benefit Plans

Benefit Plans	6 Months Ended
Benefit Plans	Jun. 30, 2023
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 Six Months Ended June 30, June 30, 2023 2022 2023 2022 (Dollars in thousands) Components of net periodic benefit cost: Service cost $ 48 $ 87 $ 96 $ 174 Interest cost 324 216 648 432 Amortization of net actuarial loss 13 114 26 228 Net periodic benefit cost $ 385 $ 417 $ 770 $ 834 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: June 30, December 31, 2023 2022 (Dollars in thousands) Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 7,060 $ 9,244 Interest cost 182 246 Actuarial loss — (2,430) Projected benefit obligation at end of period $ 7,242 $ 7,060 June 30, December 31, 2023 2022 (Dollars in thousands) Net actuarial loss $ 2,442 $ 2,301 Prior transition obligation 745 790 Accumulated other comprehensive loss $ 3,187 $ 3,091 Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (Dollars in thousands) Amortization of prior transition obligation and actuarial losses $ (48) $ (10) $ (95) $ (21) Interest cost 91 61 182 123 Net periodic benefit cost $ 43 $ 51 $ 87 $ 102

Fair Value

Fair Value	6 Months Ended
Fair Value	Jun. 30, 2023
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 June 30, 2023 Available-for-sale securities: U.S. Treasury $ 421,146 $ 421,146 $ — $ — Agency mortgage-backed securities 64,912 — 64,912 — I/O strip receivables 139 — 139 — Assets at December 31, 2022 Available-for-sale securities: U.S. Treasury $ 418,474 $ 418,474 $ — $ — Agency mortgage-backed securities 71,122 — 71,122 — I/O strip receivables 152 — 152 — 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 June 30, 2023 or December 31, 2022. 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 June 30, 2023 and December 31, 2022, there were The carrying amounts and estimated fair values of financial instruments at June 30, 2023 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 $ 511,502 $ 511,502 $ — $ — $ 511,502 Securities available-for-sale 486,058 421,146 64,912 — 486,058 Securities held-to-maturity 682,095 — 585,771 — 585,771 Loans (including loans held-for-sale) 3,291,920 (1) — 3,136 3,082,060 3,085,196 FHLB stock, FRB stock, and other investments 32,531 — — — N/A Accrued interest receivable 14,592 1,309 1,741 11,542 14,592 I/O strips receivables 139 — 139 — 139 Liabilities: Time deposits $ 335,666 $ — $ 339,196 $ — $ 339,196 Other deposits 4,165,106 — 4,165,106 — 4,165,106 Subordinated debt 39,425 — 31,425 — 31,425 Accrued interest payable 2,308 — 2,308 — 2,308 (1) Before allowance for credit losses on loans of $47,803,000. The carrying amounts and estimated fair values of the Company’s financial instruments at December 31, 2022: 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 $ 306,603 $ 306,603 $ — $ — $ 306,603 Securities available-for-sale 489,596 418,474 71,122 — 489,596 Securities held-to-maturity 714,990 — 614,452 — 614,452 Loans (including loans held-for-sale) 3,301,006 (1) — 2,456 3,080,485 3,082,941 FHLB stock, FRB stock, and other investments 32,522 — — — N/A Accrued interest receivable 15,047 1,328 1,836 11,883 15,047 I/O strips receivables 152 — 152 — 152 Liabilities: Time deposits $ 143,958 $ — $ 144,702 $ — $ 144,702 Other deposits 4,245,646 — 4,245,646 — 4,245,646 Subordinated debt 39,350 — 36,025 — 36,025 Accrued interest payable 600 — 600 — 600 (1) Before allowance for credit losses on loans of $47,512,000.

Equity Plan

Equity Plan	6 Months Ended
Equity Plan	Jun. 30, 2023
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 2013 Plan was terminated on May 25, 2023. The shareholders approved the 2023 Equity Incentive Plan (the “2023 Plan”) on May 25, 2023. These plans are collectively referred to as “Equity Plans.” The Equity Plans provide for the grant of incentive and nonqualified stock options, restricted stock, RSUs and PRSUs. 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 performance period commencing in the initial year of grant. The earned PRSUs, if any, shall vest on the date on which the Board of Directors certifies whether and to what extent the performance goal has been achieved following the end of the performance period. For the six months ended June 30, 2023, 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, 2023 2,527,173 $ 10.44 Granted 377,000 $ 7.41 Exercised (172,986) $ 5.76 Forfeited or expired (53,694) $ 10.59 Outstanding at June 30, 2023 2,677,493 $ 10.31 5.97 $ 1,325,121 Vested or expected to vest 2,516,843 5.97 $ 1,245,614 Exercisable at June 30, 2023 1,833,258 4.57 $ 1,004,071 Information related to the Equity Plans for the periods indicated: Six Months Ended June 30, 2023 2022 Intrinsic value of options exercised $ 620,013 $ 706,375 Cash received from option exercise $ 996,453 $ 848,739 Tax benefit (expense) realized from option exercises $ (5,902) $ 52,952 Weighted average fair value of options granted $ 1.32 $ 2.18 As of June 30, 2023, there was $1,477,000 of total unrecognized compensation cost related to unvested stock options granted under the Equity Plans. That cost is expected to be recognized over a weighted-average period of approximately 2.98 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, 2023 253,491 $ 11.05 Granted 65,446 $ 7.41 Vested (129,191) $ 7.71 Nonvested shares at June 30, 2023 189,746 $ 10.88 As of June 30, 2023, there was $1,609,000 of total unrecognized compensation cost related to unvested restricted stock awards granted under the Equity Plans. The cost is expected to be recognized over a weighted-average period of approximately 1.44 years. RSU activity under the Equity Plans is as follows: Weighted Average Grant Number Date Fair Total RSUs of Shares Value Nonvested shares at January 1, 2023 — $ — Granted 119,362 $ 7.41 Nonvested shares at June 30, 2023 119,362 $ 7.41 As of June 30, 2023, there were $836,000 of total unrecognized compensation cost related to unvested RSUs granted under the Equity Plans. The cost is expected to be recognized over a weighted average period of PRSU activity under the Equity Plans is as follows: Weighted Average Grant Number Date Fair Total PRSUs of Shares Value Nonvested shares at January 1, 2023 — $ — Granted 119,358 $ 7.41 Nonvested shares at June 30, 2023 119,358 $ 7.41 As of June 30, 2023, there were $836,000 of total unrecognized compensation cost related to unvested PRSUs granted under the Equity Plans. The cost is expected to be recognized over a weighted average period of

Borrowing Arrangements

Borrowing Arrangements	6 Months Ended
Borrowing Arrangements	Jun. 30, 2023
Borrowing Arrangements
Borrowing Arrangements	11) Borrowing Arrangements Federal Home Loan Bank Borrowings, Federal Reserve Bank Borrowings, and Available Lines of Credit HBC maintains a collateralized line of credit with the FHLB of San Francisco. Under this line, the Company can borrow from the FHLB on a short-term (typically overnight) or long-term (over one year) basis. HBC had $1,130,764,000 of loans and $375,480,000 of securities pledged to the FHLB as collateral on an available line of credit of $1,087,564,000 at June 30, 2023, none of which was outstanding at June 30, 2023 and December 31, 2022. The Bank borrowed HBC can also borrow from the FRB discount window. HBC had of which was outstanding at June 30, 2023 and December 31, 2022. The Bank borrowed from the FRB during the first quarter of 2023, which was repaid in full on April 20, 2023. At June 30, 2023, HBC had Federal funds purchased arrangements available of $80,000,000. There were no Federal funds purchased outstanding at June 30, 2023 and December 31, 2022. The Company has a $20,000,000 million line of credit with a correspondent bank, of which none was outstanding at June 30, 2023 and December 31, 2022. HBC may also utilize securities sold under repurchase agreements to manage its liquidity position. There were no securities sold under agreements to repurchase at June 30, 2023 and December 31, 2022. 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	6 Months Ended
Capital Requirements	Jun. 30, 2023
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 June 30, 2023. There are no conditions or events since June 30, 2023, 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 June 30, 2023 and December 31, 2022, 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 June 30, 2023 Total Capital $ 577,981 15.4 % $ 393,260 10.5 % (to risk-weighted assets) Tier 1 Capital $ 495,624 13.2 % $ 318,353 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 495,624 13.2 % $ 262,173 7.0 % (to risk-weighted assets) Tier 1 Capital $ 495,624 9.7 % $ 204,424 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, 2022 Total Capital $ 554,810 14.8 % $ 393,461 10.5 % (to risk-weighted assets) Tier 1 Capital $ 475,609 12.7 % $ 318,516 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 475,609 12.7 % $ 262,307 7.0 % (to risk-weighted assets) Tier 1 Capital $ 475,609 9.2 % $ 207,852 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 June 30, 2023 Total Capital $ 555,750 14.8 % $ 374,769 10.0 % $ 393,508 10.5 % (to risk-weighted assets) Tier 1 Capital $ 512,818 13.7 % $ 299,815 8.0 % $ 318,554 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 512,818 13.7 % $ 243,600 6.5 % $ 262,338 7.0 % (to risk-weighted assets) Tier 1 Capital $ 512,818 10.0 % $ 255,413 5.0 % $ 204,330 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, 2022 Total Capital $ 532,576 14.2 % $ 374,572 10.0 % $ 393,301 10.5 % (to risk-weighted assets) Tier 1 Capital $ 492,725 13.2 % $ 299,658 8.0 % $ 318,387 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 492,725 13.2 % $ 243,472 6.5 % $ 262,201 7.0 % (to risk-weighted assets) Tier 1 Capital $ 492,725 9.5 % $ 259,740 5.0 % $ 207,792 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 $39,425,000 at June 30, 2023, and qualifies as Tier 2 capital for the Company under the guidelines established by the Federal Reserve Board. 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 June 30, 2023, HBC would not be required to obtain regulatory approval, and the amount available for cash dividends is $50,085,000 . HBC distributed to HCC dividends of

Commitments and Loss Contingenc

Commitments and Loss Contingencies	6 Months Ended
Commitments and Loss Contingencies	Jun. 30, 2023
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 June 30, 2023 follows: D.C. Solar Related: ● 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 Superior Court of State of California for the County of Solano. 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 26 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 District Court of Appeal, which denied the petition. On December 12, 2022, the court granted the Bank’s motion for judgment on the pleadings on one of the two remaining counts. On May 4, 2023, the court granted the Bank’s motion for summary judgment on the sole remaining count, and there are no further claims pending against the Bank. A motion seeking the Bank’s attorneys’ fees is set for September 5, 2023. We continue to vigorously defend 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. ● In September 2022 the Bank moved to compel arbitration in both cases; hearings were held in Alameda County Superior Court in early November and early December 2022. The motions in both cases were denied and the Bank appealed the rulings. Both cases are stayed pending appeal. 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 $1,126,704,000 at June 30, 2023, and $1,134,619,000 at December 31, 2022. Unused commitments represented 34% outstanding gross loans at both June 30, 2023 and December 31, 2022. 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: June 30, 2023 December 31, 2022 Fixed Variable Fixed Variable Rate Rate Total Rate Rate Total (Dollars in thousands) Unused lines of credit and commitments to make loans $ 72,004 $ 1,040,297 $ 1,112,301 $ 87,348 $ 1,036,847 $ 1,124,195 Standby letters of credit 5,049 9,354 14,403 1,565 8,859 10,424 $ 77,053 $ 1,049,651 $ 1,126,704 $ 88,913 $ 1,045,706 $ 1,134,619 For the six months ended June 30, 2023, there was an decrease of $37,000 to the allowance for credit losses on the Company’s off-balance sheet credit exposures. The decrease in the allowance for credit losses for off-balance sheet credit exposures in the first six months of 2023 was driven by lower loan commitments. The allowance for credit losses on the Company’s off-balance sheet credit exposures was $783,000 at June 30, 2023 and $820,000 at December 31, 2022.

Revenue Recognition

Revenue Recognition	6 Months Ended
Revenue Recognition	Jun. 30, 2023
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 June 30, 2023 2022 (Dollars in thousands) Noninterest Income In-scope of Topic 606: Service charges and fees on deposit accounts $ 901 $ 867 Total noninterest income in-scope of Topic 606 901 867 Noninterest Income Out-of-scope of Topic 606 1,173 1,231 Total noninterest income $ 2,074 $ 2,098 Six Months Ended June 30, 2023 2022 (Dollars in thousands) Noninterest Income In-scope of Topic 606: Service charges and fees on deposit accounts $ 2,644 $ 1,479 Total noninterest income in-scope of Topic 606 2,644 1,479 Noninterest Income Out-of-scope of Topic 606 2,196 3,079 Total noninterest income $ 4,840 $ 4,558

Noninterest Expense

Noninterest Expense	6 Months Ended
Noninterest Expense	Jun. 30, 2023
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 Six Months Ended June 30, June 30, 2023 2022 2023 2022 (Dollars in thousands) Salaries and employee benefits $ 13,987 $ 13,476 $ 28,796 $ 27,297 Occupancy and equipment 2,422 2,277 4,822 4,714 Insurance expense 1,512 1,043 3,032 2,086 Professional fees 1,149 1,291 2,548 2,371 Data processing 913 681 1,687 1,332 Software subscriptions 631 462 1,221 874 Amortization of intangible assets 601 658 1,203 1,317 Other 3,776 3,302 7,083 6,451 Total noninterest expense $ 24,991 $ 23,190 $ 50,392 $ 46,442

Leases

Leases	6 Months Ended
Leases	Jun. 30, 2023
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 therefore it was not considered in the calculation of the ROU asset and lease liability. As of June 30, 2023, operating lease ROU assets, included in other assets, and lease liabilities, included in other liabilities, totaled $33,267,000. The following table presents the quantitative information for the Company’s leases for the periods indicated: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (Dollars in thousands) Operating Lease Cost (Cost resulting from lease payments) $ 1,709 $ 1,620 $ 3,410 $ 3,240 Operating Lease - Operating Cash Flows (Fixed Payments) $ 1,703 $ 1,235 $ 3,348 $ 2,445 Operating Lease - ROU assets $ 33,267 $ 32,434 $ 33,267 $ 32,434 Operating Lease - Liabilities $ 33,267 $ 32,434 $ 33,267 $ 32,434 Weighted Average Lease Term - Operating Leases 6.29 years 7.03 years 6.29 years 7.03 years Weighted Average Discount Rate - Operating Leases 4.83% 4.50% 4.83% 4.50% The following maturity analysis shows the undiscounted cash flows due on the Company’s operating lease liabilities as of June 30, 2023: (Dollars in thousands) 2023 remaining $ 3,334 2024 6,506 2025 5,979 2026 5,445 2027 5,288 Thereafter 12,268 Total undiscounted cash flows 38,820 Discount on cash flows (5,553) Total lease liability $ 33,267

Business Segment Information

Business Segment Information	6 Months Ended
Business Segment Information	Jun. 30, 2023
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 June 30, 2023 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 54,494 $ 3,847 $ 58,341 Intersegment interest allocations 524 (524) — Total interest expense 12,048 — 12,048 Net interest income 42,970 3,323 46,293 Provision for (recapture of) credit losses on loans 409 (149) 260 Net interest income after provision 42,561 3,472 46,033 Noninterest income 2,017 57 2,074 Noninterest expense 23,329 1,662 24,991 Intersegment expense allocations 152 (152) — Income before income taxes 21,401 1,715 23,116 Income tax expense 6,206 507 6,713 Net income $ 15,195 $ 1,208 $ 16,403 Total assets $ 5,227,310 $ 84,527 $ 5,311,837 Loans, net of deferred fees $ 3,227,905 $ 60,879 $ 3,288,784 Goodwill $ 154,587 $ 13,044 $ 167,631 Three Months Ended June 30, 2022 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 40,427 $ 3,129 $ 43,556 Intersegment interest allocations 321 (321) — Total interest expense 1,677 — 1,677 Net interest income 39,071 2,808 41,879 Provision (recapture) for credit losses on loans (328) 147 (181) Net interest income after provision 39,399 2,661 42,060 Noninterest income 1,974 124 2,098 Noninterest expense 21,559 1,631 23,190 Intersegment expense allocations 128 (128) — Income before income taxes 19,942 1,026 20,968 Income tax expense 5,844 303 6,147 Net income $ 14,098 $ 723 $ 14,821 Total assets $ 5,280,953 $ 75,888 $ 5,356,841 Loans, net of deferred fees $ 3,019,076 $ 63,376 $ 3,082,452 Goodwill $ 154,587 $ 13,044 $ 167,631 (1) Includes the holding company’s results of operations Six Months Ended June 30, 2023 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 106,767 $ 7,848 $ 114,615 Intersegment interest allocations 1,229 (1,229) — Total interest expense 19,064 — 19,064 Net interest income 88,932 6,619 95,551 Provision for (recapture of) credit losses on loans 553 (261) 292 Net interest income after provision 88,379 6,880 95,259 Noninterest income 4,699 141 4,840 Noninterest expense 47,057 3,335 50,392 Intersegment expense allocations 326 (326) — Income before income taxes 46,347 3,360 49,707 Income tax expense 13,394 993 14,387 Net income $ 32,953 $ 2,367 $ 35,320 Total assets $ 5,227,310 $ 84,527 $ 5,311,837 Loans, net of deferred fees $ 3,227,905 $ 60,879 $ 3,288,784 Goodwill $ 154,587 $ 13,044 $ 167,631 Six Months Ended June 30, 2022 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 77,540 $ 5,922 $ 83,462 Intersegment interest allocations 558 (558) — Total interest expense 3,362 — 3,362 Net interest income 74,736 5,364 80,100 Provision (recapture) for credit losses on loans (867) 119 (748) Net interest income after provision 75,603 5,245 80,848 Noninterest income 4,372 186 4,558 Noninterest expense 43,326 3,116 46,442 Intersegment expense allocations 242 (242) — Income before income taxes 36,891 2,073 38,964 Income tax expense 10,664 613 11,277 Net income $ 26,227 $ 1,460 $ 27,687 Total assets $ 5,280,953 $ 75,888 $ 5,356,841 Loans, net of deferred fees $ 3,019,076 $ 63,376 $ 3,082,452 Goodwill $ 154,587 $ 13,044 $ 167,631 (1) Includes the holding company’s results of operations

Subsequent Events

Subsequent Events	6 Months Ended
Subsequent Events	Jun. 30, 2023
Subsequent Events
Subsequent Events	18) Subsequent Events On July 27, 2023, 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 August 24, 2023, to shareholders of record at the close of the business day on August 10, 2023.

Basis of Presentation (Policies

Basis of Presentation (Policies)	6 Months Ended
Basis of Presentation (Policies)	Jun. 30, 2023
Basis of Presentation
Basis of Presentation	Basis of Presentation The unaudited consolidated financial statements of Heritage Commerce Corp (the “Company” or “HCC”) and its wholly owned subsidiary, Heritage Bank of Commerce (the “Bank” or “HBC”), have been prepared pursuant to the rules and regulations for reporting on Form 10-Q. Accordingly, certain information and notes required by accounting principles generally accepted in the United States of America (“GAAP”) for annual financial statements are not included herein. The interim statements should be read in conjunction with the consolidated financial statements and notes that were included in the Company’s Form 10-K for the year ended December 31, 2022. 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 accordance with the accounting principles generally accepted in the United States (“U.S. GAAP”) requires management to make a number of judgments, estimates and assumptions that affect the reported amount of assets, liabilities, income and expense in the financial statements. Various elements of our accounting policies, by their nature, involve the application of highly sensitive and judgmental estimates and assumptions. Some of these policies and estimates relate to matters that are highly complex and contain inherent uncertainties. 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 possible that, in some instances, different estimates and assumptions could reasonably have been made and used by management, instead of those we applied, which might have produced different results that could have had a material effect on the financial statements. The results for the three months and six months ended June 30, 2023 are not necessarily indicative of the results expected for any subsequent period or for the entire year ending December 31, 2023.
Reclassifications	Reclassifications Certain reclassifications of prior year balances have been made to conform to the current year presentation. These reclassifications had no impact on the Company’s consolidated financial position, results of operations or net change in cash and cash equivalents.
Adoption of New Accounting Standards	Adoption of New Accounting Standards In March 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2022-02 Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings 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. The Company adopted the guidance of ASU 2022-02 on January 1, 2023 and the amendments were applied prospectively. The adoption of this new guidance did not impact the financial position or results of operations.
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 - - . - , ,

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
Earnings Per Share (Tables)	Jun. 30, 2023
Earnings Per Share
Schedule of reconciliation of factors used in computing basic and diluted earnings per common share	Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (Dollars in thousands, except per share amounts) Net income $ 16,403 $ 14,821 $ 35,320 $ 27,687 Weighted average common shares outstanding for basic earnings per common share 61,035,435 60,542,170 60,971,828 60,468,027 Dilutive potential common shares 230,624 426,984 270,349 477,684 Shares used in computing diluted earnings per common share 61,266,059 60,969,154 61,242,177 60,945,711 Basic earnings per share $ 0.27 $ 0.24 $ 0.58 $ 0.46 Diluted earnings per share $ 0.27 $ 0.24 $ 0.58 $ 0.45

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Loss) (AOCI) (Tables)	6 Months Ended
	Jun. 30, 2023
Accumulated Other Comprehensive Income (Loss) ("AOCI")
Schedule of changes in AOCI by component	Three Months Ended June 30, 2023 and 2022 Unrealized Gains (Losses) on Available- Defined for-Sale Benefit Securities Pension and I/O Plan Strips Items(1) Total (Dollars in thousands) Beginning balance April 1, 2023, net of taxes $ (8,817) $ (5,500) $ (14,317) Other comprehensive income (loss) before reclassification, net of taxes (2,902) (14) (2,916) Amounts reclassified from other comprehensive income (loss), net of taxes — (25) (25) Net current period other comprehensive income (loss), net of taxes (2,902) (39) (2,941) Ending balance June 30, 2023, net of taxes $ (11,719) $ (5,539) $ (17,258) Beginning balance April 1, 2022, net of taxes $ (975) $ (13,079) $ (14,054) Other comprehensive income (loss) before reclassification, net of taxes (1,934) (3) (1,937) Amounts reclassified from other comprehensive income (loss), net of taxes — 73 73 Net current period other comprehensive income (loss), net of taxes (1,934) 70 (1,864) Ending balance June 30, 2022, net of taxes $ (2,909) $ (13,009) $ (15,918) Six Months Ended June 30, 2023 and 2022 Unrealized Gains (Losses) on Available- Defined for-Sale Benefit Securities Pension and I/O Plan Strips Items(1) Total (Dollars in thousands) Beginning balance January 1, 2023, net of taxes $ (11,394) $ (5,462) $ (16,856) Other comprehensive loss before reclassification, net of taxes (325) (28) (353) Amounts reclassified from other comprehensive income (loss), net of taxes — (49) (49) Net current period other comprehensive income (loss), net of taxes (325) (77) (402) Ending balance June 30, 2023, net of taxes $ (11,719) $ (5,539) $ (17,258) Beginning balance January 1, 2022, net of taxes $ 2,153 $ (13,149) $ (10,996) Other comprehensive income (loss) before reclassification, net of taxes (5,062) (6) (5,068) Amounts reclassified from other comprehensive income (loss), net of taxes — 146 146 Net current period other comprehensive income (loss), net of taxes (5,062) 140 (4,922) Ending balance June 30, 2022, net of taxes $ (2,909) $ (13,009) $ (15,918) (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 June 30, Affected Line Item Where Details About AOCI Components 2023 2022 Net Income is Presented (Dollars in thousands) Amortization of defined benefit pension plan items (1) Prior transition obligation and actuarial losses (2) $ 48 $ 10 Prior service cost and actuarial losses (3) (13) (114) 35 (104) Other noninterest expense (10) 31 Income tax benefit 25 (73) Net of tax Total reclassification from AOCI for the period $ 25 $ (73) Amounts Reclassified from AOCI Six Months Ended June 30, Affected Line Item Where Details About AOCI Components 2023 2022 Net Income is Presented (Dollars in thousands) Amortization of defined benefit pension plan items (1) Prior transition obligation and actuarial losses (2) $ 95 $ 21 Prior service cost and actuarial losses (3) (26) (228) 69 (207) Other noninterest expense (20) 61 Income tax benefit 49 (146) Net of tax Total reclassification from AOCI for the period $ 49 $ (146) (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)	6 Months Ended
Securities (Tables)	Jun. 30, 2023
Securities
Schedule of amortized cost and estimated fair value of securities	Gross Gross Allowance Estimated Amortized Unrealized Unrealized for Credit Fair June 30, 2023 Cost Gains (Losses) Losses Value (Dollars in thousands) Securities available-for-sale: U.S. Treasury $ 432,049 $ — $ (10,903) $ — $ 421,146 Agency mortgage-backed securities 70,571 — (5,659) — 64,912 Total $ 502,620 $ — $ (16,562) $ — $ 486,058 Gross Gross Estimated Allowance Amortized Unrecognized Unrecognized Fair for Credit June 30, 2023 Cost Gains (Losses) Value Losses (Dollars in thousands) Securities held-to-maturity: Agency mortgage-backed securities $ 648,337 $ 187 $ (95,472) $ 553,052 $ — Municipals - exempt from Federal tax 33,771 1 (1,053) 32,719 (13) Total $ 682,108 $ 188 $ (96,525) $ 585,771 $ (13) Gross Gross Allowance Estimated Amortized Unrealized Unrealized for Credit Fair December 31, 2022 Cost Gains (Losses) Losses Value (Dollars in thousands) Securities available-for-sale: U.S. Treasury $ 428,797 $ — $ (10,323) $ — $ 418,474 Agency mortgage-backed securities 76,916 — (5,794) — 71,122 Total $ 505,713 $ — $ (16,117) $ — $ 489,596 Gross Gross Estimated Allowance Amortized Unrecognized Unrecognized Fair for Credit December 31, 2022 Cost Gains (Losses) Value Losses (Dollars in thousands) Securities held-to-maturity: Agency mortgage-backed securities $ 677,381 $ 235 $ (99,977) $ 577,639 $ — Municipals - exempt from Federal tax 37,623 9 (819) 36,813 (14) Total $ 715,004 $ 244 $ (100,796) $ 614,452 $ (14)
Schedule of securities with unrealized losses	Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized June 30, 2023 Value (Losses) Value (Losses) Value (Losses) (Dollars in thousands) Securities available-for-sale: U.S. Treasury $ 219,581 $ (4,273) $ 201,565 $ (6,630) $ 421,146 $ (10,903) Agency mortgage-backed securities 3,323 (181) 61,589 (5,478) 64,912 (5,659) Total $ 222,904 $ (4,454) $ 263,154 $ (12,108) $ 486,058 $ (16,562) Securities held-to-maturity: Agency mortgage-backed securities $ 17,239 $ (540) $ 523,809 $ (94,932) $ 541,048 $ (95,472) Municipals — exempt from Federal tax 22,946 (672) 5,882 (381) 28,828 (1,053) Total $ 40,185 $ (1,212) $ 529,691 $ (95,313) $ 569,876 $ (96,525) Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2022 Value (Losses) Value (Losses) Value (Losses) (Dollars in thousands) Securities available-for-sale: U.S. Treasury $ 418,474 $ (10,323) $ — $ — $ 418,474 $ (10,323) Agency mortgage-backed securities 71,122 (5,794) — — 71,122 (5,794) Total $ 489,596 $ (16,117) $ — $ — $ 489,596 $ (16,117) Securities held-to-maturity: Agency mortgage-backed securities $ 136,264 $ (12,866) $ 429,257 $ (87,111) $ 565,521 $ (99,977) Municipals — exempt from Federal tax 31,007 (819) — — 31,007 (819) Total $ 167,271 $ (13,685) $ 429,257 $ (87,111) $ 596,528 $ (100,796)
Schedule of amortized cost and estimated fair values of securities, by contractual maturity	Available-for-sale Amortized Estimated Cost Fair Value (Dollars in thousands) Due 3 months or less $ 19,943 $ 19,909 Due after three months through one year 173,446 170,289 Due after one through five years 238,660 230,948 Agency mortgage-backed securities 70,571 64,912 Total $ 502,620 $ 486,058 Held-to-maturity Amortized Estimated Cost Fair Value (Dollars in thousands) Due three months or less $ 555 $ 555 Due after three months through one year 400 399 Due after one through five years 7,219 7,067 Due after five through ten years 25,020 24,135 Due after ten years 577 563 Agency mortgage-backed securities 648,337 553,052 Total $ 682,108 $ 585,771
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, 2023 $ 14 Provision for (recapture of) credit losses (1) Ending balance June 30, 2023 $ 13

Loans and Allowance for Credi_2

Loans and Allowance for Credit Losses on Loans (Tables)	6 Months Ended
Loans and Allowance for Credit Losses on Loans (Tables)	Jun. 30, 2023
Loans and Allowance for Credit Losses on Loans
Schedule of loans	June 30, December 31, 2023 2022 (Dollars in thousands) Loans held-for-investment: Commercial $ 466,354 $ 533,915 Real estate: CRE - owner occupied 608,031 614,663 CRE - non-owner occupied 1,147,313 1,066,368 Land and construction 162,816 163,577 Home equity 128,009 120,724 Multifamily 244,959 244,882 Residential mortgages 514,064 537,905 Consumer and other 17,635 17,033 Loans 3,289,181 3,299,067 Deferred loan fees, net (397) (517) Loans, net of deferred fees 3,288,784 3,298,550 Allowance for credit losses on loans (47,803) (47,512) Loans, net $ 3,240,981 $ 3,251,038
Schedule of changes in allowance for loan (credit) losses	Three Months Ended June 30, 2023 CRE CRE Owner Non-owner Land & Home Multi- Residential Consumer Commercial Occupied Occupied Construction Equity Family Mortgages and Other Total (Dollars in thousands) Beginning of period balance $ 6,534 $ 5,453 $ 22,677 $ 3,176 $ 688 $ 4,392 $ 4,196 $ 157 $ 47,273 Charge-offs (24) — — — — — — — (24) Recoveries 108 4 — — 182 — — — 294 Net recoveries 84 4 — — 182 — — — 270 Provision for (recapture of) credit losses on loans (68) 6 846 (306) (140) (9) (67) (2) 260 End of period balance $ 6,550 $ 5,463 $ 23,523 $ 2,870 $ 730 $ 4,383 $ 4,129 $ 155 $ 47,803 Three Months Ended June 30, 2022 CRE CRE Owner Non-owner Land & Home Multi- Residential Consumer Commercial Occupied Occupied Construction Equity Family Mortgages and Other Total (Dollars in thousands) Beginning of period balance $ 6,801 $ 6,397 $ 19,413 $ 2,006 $ 722 $ 2,544 $ 4,757 $ 148 $ 42,788 Charge-offs (355) — — — — — — — (355) Recoveries 79 4 — — 31 — — 3,124 3,238 Net (charge-offs) recoveries (276) 4 — — 31 — — 3,124 2,883 Provision for (recapture of) credit losses on loans 77 (392) 2,061 492 (58) 280 475 (3,116) (181) End of period balance $ 6,602 $ 6,009 $ 21,474 $ 2,498 $ 695 $ 2,824 $ 5,232 $ 156 $ 45,490 Six Months Ended June 30, 2023 CRE CRE Owner Non-owner Land & Home Multi- Residential Consumer Commercial Occupied Occupied Construction Equity Family Mortgages and Other Total (Dollars in thousands) Beginning of period balance $ 6,617 $ 5,751 $ 22,135 $ 2,941 $ 666 $ 3,366 $ 5,907 $ 129 $ 47,512 Charge-offs (158) — — — (246) — — — (404) Recoveries 188 8 — — 207 — — — 403 Net (charge-offs) recoveries 30 8 — — (39) — — — (1) Provision for (recapture of) credit losses on loans (97) (296) 1,388 (71) 103 1,017 (1,778) 26 292 End of period balance $ 6,550 $ 5,463 $ 23,523 $ 2,870 $ 730 $ 4,383 $ 4,129 $ 155 $ 47,803 Six Months Ended June 30, 2022 CRE CRE Owner Non-owner Land & Home Multi- Residential Consumer Commercial Occupied Occupied Construction Equity Family Mortgages 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 (371) — — — — — — — (371) Recoveries 133 7 — — 55 — — 3,124 3,319 Net (charge-offs) recoveries (238) 7 — — 55 — — 3,124 2,948 Provision for (recapture of) credit losses on loans (1,574) (1,952) 4,349 667 (224) 28 1,100 (3,142) (748) End of period balance $ 6,602 $ 6,009 $ 21,474 $ 2,498 $ 695 $ 2,824 $ 5,232 $ 156 $ 45,490
Schedule of nonperforming loans	June 30, 2023 Nonaccrual Nonaccrual 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 $ — $ 1,306 $ 2,172 $ 3,478 Real estate: CRE - Owner Occupied — — — — CRE - Non-Owner Occupied — — — — Home equity 96 — 90 186 Residential mortgages 1,873 — — 1,873 Total $ 1,969 $ 1,306 $ 2,262 $ 5,537 December 31, 2022 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 $ 318 $ 324 $ 349 $ 991 Real estate: CRE - Owner Occupied — — — — CRE - Non-Owner Occupied — — 1,336 1,336 Home equity 98 — — 98 Total $ 416 $ 324 $ 1,685 $ 2,425
Schedule of aging of past due loans by class of loans	June 30, 2023 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 $ 5,009 $ 1,829 $ 3,086 $ 9,924 $ 456,430 $ 466,354 Real estate: CRE - Owner Occupied — — — 608,031 608,031 CRE - Non-Owner Occupied — — — 1,147,313 1,147,313 Land and construction — — — — 162,816 162,816 Home equity — 186 186 127,823 128,009 Multifamily — — — — 244,959 244,959 Residential mortgages 1,297 1,873 3,170 510,894 514,064 Consumer and other — — — — 17,635 17,635 Total $ 5,009 $ 3,126 $ 5,145 $ 13,280 $ 3,275,901 $ 3,289,181 December 31, 2022 30 - 59 60 - 89 90 Days or Days Days Greater Total Past Due Past Due Past Due Past Due Current Total (Dollars in thousands) Commercial $ 7,236 $ 2,519 $ 703 $ 10,458 $ 523,457 $ 533,915 Real estate: CRE - Owner Occupied 252 — — 252 614,411 614,663 CRE - Non-Owner Occupied — — 1,336 1,336 1,065,032 1,066,368 Land and construction — — — — 163,577 163,577 Home equity — 98 — 98 120,626 120,724 Multifamily — — — — 244,882 244,882 Residential mortgages 4,202 720 — 4,922 532,983 537,905 Consumer and other — — — — 17,033 17,033 Total $ 11,690 $ 3,337 $ 2,039 $ 17,066 $ 3,282,001 $ 3,299,067
Summary of loan portfolio by loan type and credit quality classification	Revolving Term Loans Amortized Cost Basis by Originated Period as of June 30, 2023 Loans 2018 and Amortized 6/30/2023 12/31/2022 12/31/2021 12/31/2020 12/31/2019 Prior Cost Basis Total (Dollars in thousands) Commercial: Pass $ 92,038 $ 30,515 $ 27,889 $ 17,496 $ 15,062 $ 14,498 $ 242,625 $ 440,123 Special Mention 2,020 1,340 508 — 821 8,525 3,201 16,415 Substandard 4 — 571 — 166 5,599 2,170 8,510 Substandard-Nonaccrual — — 224 — 270 421 391 1,306 Total 94,062 31,855 29,192 17,496 16,319 29,043 248,387 466,354 CRE - Owner Occupied: Pass 17,849 86,777 118,396 73,915 58,862 231,378 11,706 598,883 Special Mention 625 1,581 271 838 — 4,713 — 8,028 Substandard — — — — 1,113 7 — 1,120 Substandard-Nonaccrual — — — — — — — — Total 18,474 88,358 118,667 74,753 59,975 236,098 11,706 608,031 CRE - Non-Owner Occupied: Pass 105,650 238,247 269,055 28,752 98,962 389,217 2,055 1,131,938 Special Mention — — — — — 7,435 — 7,435 Substandard — — — — — 7,716 224 7,940 Substandard-Nonaccrual — — — — — — — — Total 105,650 238,247 269,055 28,752 98,962 404,368 2,279 1,147,313 Land and construction: Pass 19,804 73,869 44,446 13,950 1,918 — — 153,987 Special Mention — — — — 4,217 — — 4,217 Substandard — — 3,666 946 — — — 4,612 Substandard-Nonaccrual — — — — — — — — Total 19,804 73,869 48,112 14,896 6,135 — — 162,816 Home equity: Pass — — — — — 126 120,569 120,695 Special Mention — — — — — — 4,640 4,640 Substandard — — — — — — 2,578 2,578 Substandard-Nonaccrual — — 96 — — — — 96 Total — — 96 — — 126 127,787 128,009 Multifamily: Pass 18,274 41,686 56,697 5,457 42,659 77,645 276 242,694 Special Mention — — — — — — — — Substandard — — — — — 2,265 — 2,265 Substandard-Nonaccrual — — — — — — — — Total 18,274 41,686 56,697 5,457 42,659 79,910 276 244,959 Residential mortgage: Pass 1,195 184,686 285,879 1,053 6,672 30,943 — 510,428 Special Mention — — — — 1,046 516 — 1,562 Substandard — — — — — 201 — 201 Substandard-Nonaccrual — 1,873 — — — — — 1,873 Total 1,195 186,559 285,879 1,053 7,718 31,660 — 514,064 Consumer and other: Pass — 383 8 — — 2,109 15,063 17,563 Special Mention — — 72 — — — — 72 Substandard — — — — — — — — Substandard-Nonaccrual — — — — — — — — Total — 383 80 — — 2,109 15,063 17,635 Total loans $ 257,459 $ 660,957 $ 807,778 $ 142,407 $ 231,768 $ 783,314 $ 405,498 $ 3,289,181 Risk Grades: Pass $ 254,810 $ 656,163 $ 802,370 $ 140,623 $ 224,135 $ 745,916 $ 392,294 $ 3,216,311 Special Mention 2,645 2,921 851 838 6,084 21,189 7,841 42,369 Substandard 4 — 4,237 946 1,279 15,788 4,972 27,226 Substandard-Nonaccrual — 1,873 320 — 270 421 391 3,275 Grand Total $ 257,459 $ 660,957 $ 807,778 $ 142,407 $ 231,768 $ 783,314 $ 405,498 $ 3,289,181 Revolving Loans Term Loans Amortized Cost Basis by Originated Period as of December 31, 2022 Amortized 2022 2021 2020 2019 2018 Prior Periods Cost Basis Total (Dollars in thousands) Commercial: Pass $ 102,969 $ 36,752 $ 24,406 $ 19,272 $ 12,089 $ 21,127 $ 293,546 $ 510,161 Special Mention 3,408 1,060 192 1,123 — 6,031 5,551 17,365 Substandard 4 — — 145 — 102 5,496 5,747 Substandard-Nonaccrual — 279 — — 330 33 — 642 Total 106,381 38,091 24,598 20,540 12,419 27,293 304,593 533,915 CRE - Owner Occupied: Pass 92,689 116,266 75,007 59,887 58,180 194,584 8,758 605,371 Special Mention — 2,033 867 1,120 — 4,410 — 8,430 Substandard — 660 — — 193 9 — 862 Substandard-Nonaccrual — — — — — — — — Total 92,689 118,959 75,874 61,007 58,373 199,003 8,758 614,663 CRE - Non-Owner Occupied: Pass 239,556 278,051 31,848 101,854 63,905 337,048 3,245 1,055,507 Special Mention — — — — — 4,883 — 4,883 Substandard — — — — — 5,978 — 5,978 Substandard-Nonaccrual — — — — — — — — Total 239,556 278,051 31,848 101,854 63,905 347,909 3,245 1,066,368 Land and construction: Pass 62,241 72,847 22,459 6,030 — — — 163,577 Special Mention — — — — — — — — Substandard — — — — — — — — Substandard-Nonaccrual — — — — — — — — Total 62,241 72,847 22,459 6,030 — — — 163,577 Home equity: Pass — — — — — 44 117,950 117,994 Special Mention — — — — — — 2,346 2,346 Substandard — — — — — 144 142 286 Substandard-Nonaccrual — 98 — — — — 98 Total — 98 — — — 188 120,438 120,724 Multifamily: Pass 42,111 69,824 4,871 42,412 15,356 66,380 180 241,134 Special Mention — — 657 771 — 2,320 — 3,748 Substandard — — — — — — — — Substandard-Nonaccrual — — — — — — — — Total 42,111 69,824 5,528 43,183 15,356 68,700 180 244,882 Residential mortgage: Pass 191,907 296,270 1,068 6,788 2,724 33,290 — 532,047 Special Mention — — — 1,058 1,482 2,387 — 4,927 Substandard — — — — — 931 — 931 Substandard-Nonaccrual — — — — — — — — Total 191,907 296,270 1,068 7,846 4,206 36,608 — 537,905 Consumer and other: Pass 389 13 — — 1,364 1,283 13,647 16,696 Special Mention — 82 — 6 — — 249 337 Substandard — — — — — — — — Substandard-Nonaccrual — — — — — — — — Total 389 95 — 6 1,364 1,283 13,896 17,033 Total loans $ 735,274 $ 874,235 $ 161,375 $ 240,466 $ 155,623 $ 680,984 $ 451,110 $ 3,299,067 Risk Grades: Pass $ 731,862 $ 870,023 $ 159,659 $ 236,243 $ 153,618 $ 653,756 $ 437,326 $ 3,242,487 Special Mention 3,408 3,175 1,716 4,078 1,482 20,031 8,146 42,036 Substandard 4 660 — 145 193 7,164 5,638 13,804 Substandard-Nonaccrual — 377 — — 330 33 — 740 Grand Total $ 735,274 $ 874,235 $ 161,375 $ 240,466 $ 155,623 $ 680,984 $ 451,110 $ 3,299,067 Gross Charge-offs by Originated Period for the Three Months Ended June 30, 2023 2018 and Revolving 06/30/2023 12/31/2022 12/31/2021 12/31/2020 12/31/2019 Prior Loans Total (Dollars in thousands) Commercial $ — $ 4 $ — $ — $ — $ 20 $ — $ 24 Real estate: CRE - Owner Occupied — — — — — — — — CRE - Non-Owner Occupied — — — — — — — — Land and construction — — — — — — — — Home equity — — — — — — — — Multifamily — — — — — — — — Residential mortgages — — — — — — — — Consumer and other — — — — — — — — Total $ — $ 4 $ — $ — $ — $ 20 $ — $ 24 Gross Charge-offs by Originated Period for the Six Months Ended June 30, 2023 2018 and Revolving 06/30/2023 12/31/2022 12/31/2021 12/31/2020 12/31/2019 Prior Loans Total (Dollars in thousands) Commercial $ — $ 4 $ — $ — $ 49 $ 105 $ — $ 158 Real estate: CRE - Owner Occupied — — — — — — — — CRE - Non-Owner Occupied — — — — — — — — Land and construction — — — — — — — — Home equity — — — — — — 246 246 Multifamily — — — — — — — — Residential mortgages — — — — — — — — Consumer and other — — — — — — — — Total $ — $ 4 $ — $ — $ 49 $ 105 $ 246 $ 404
Schedule of the amortized cost basis of the loans that were experiencing financial distress and modified	Three Months Ended June 30, 2023 Combination Combination Term Term Extension Extension Total Interest and and Class of Principal Payment Term Rate Principal Interest Rate Financing Forgiveness Delay Extension Reduction Forgiveness Reduction Receivables (Dollars in thousands) Commercial $ — $ 22 $ — $ — $ — $ 28 0.01 % Total $ — $ 22 $ — $ — $ — $ 28 0.01 % Six Months Ended June 30, 2023 Combination Combination Term Term Extension Extension Total Interest and and Class of Principal Payment Term Rate Principal Interest Rate Financing Forgiveness Delay Extension Reduction Forgiveness Reduction Receivables (Dollars in thousands) Commercial $ 6 $ 110 $ 36 $ — $ — $ 28 0.04 % Total $ 6 $ 110 $ 36 $ — $ — $ 28 0.04 %
Schedule of performance of loans that have been modified	Three Months Ended June 30, 2023 30 - 59 60 - 89 90 Days or Days Days Greater Total Past Due Past Due Past Due Past Due (Dollars in thousands) Commercial $ 22 $ — $ 28 $ 50 Total $ 22 $ — $ 28 $ 50 Six Months Ended June 30, 2023 30 - 59 60 - 89 90 Days or Days Days Greater Total Past Due Past Due Past Due Past Due (Dollars in thousands) Commercial $ 22 $ 36 $ 34 $ 92 Total $ 22 $ 36 $ 34 $ 92
Schedule of financial effect of the loan modification presented of borrowers experiencing financial difficulty	Three Months Ended June 30, 2023 Weighted Weighted Average Average Interest Term Principal Rate Extension Forgiveness Reduction (Months) (Dollars in thousands) Commercial $ — 0.25 % 15 Total $ — 0.25 % 15 Six Months Ended June 30, 2023 Weighted Weighted Average Average Interest Term Principal Rate Extension Forgiveness Reduction (Months) (Dollars in thousands) Commercial $ 3 0.25 % 14 Total $ 3 0.25 % 14

Goodwill and Other Intangible_2

Goodwill and Other Intangible Assets (Tables)	6 Months Ended
Goodwill and Other Intangible Assets (Tables)	Jun. 30, 2023
Goodwill and Other Intangible Assets
Schedule of carrying amount of goodwill by segment	June 30, December 31, 2023 2022 (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	June 30, 2023 Gross Carrying Accumulated Amount Amortization Total (Dollars in thousands) Core deposit intangibles $ 25,023 $ (15,538) $ 9,485 Customer relationship and brokered relationship intangibles 1,900 (1,646) 254 Below market leases 110 (19) 91 Total $ 27,033 $ (17,203) $ 9,830 December 31, 2022 Gross Carrying Accumulated Amount Amortization Total (Dollars in thousands) Core deposit intangibles $ 25,023 $ (14,429) $ 10,594 Customer relationship and brokered relationship intangibles 1,900 (1,551) 349 Below market leases 110 (20) 90 Total $ 27,033 $ (16,000) $ 11,033
Schedule of estimated amortization expense	Customer & Below/ Core Brokered (Above) Total Deposit Relationship Market Amortization Year Intangible Intangible Lease Expense (Dollars in thousands) 2023 remaining $ 1,108 95 $ (1) $ 1,202 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 2028 999 — 18 1,017 2029 610 — 15 625 $ 9,485 $ 254 $ 91 $ 9,830

Income Taxes (Tables)

Income Taxes (Tables)	6 Months Ended
Income Taxes (Tables)	Jun. 30, 2023
Income Taxes
Summary of carrying amount of low income tax housing investment	June 30, December 31, 2023 2022 (Dollars in thousands) Low income housing investments $ 3,166 $ 3,537 Future commitments $ 517 $ 523

Benefit Plans (Tables)

Benefit Plans (Tables)	6 Months Ended
Benefit Plans (Tables)	Jun. 30, 2023
Supplemental Retirement Plan
Benefit plans
Schedule of components of net periodic benefit cost	Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (Dollars in thousands) Components of net periodic benefit cost: Service cost $ 48 $ 87 $ 96 $ 174 Interest cost 324 216 648 432 Amortization of net actuarial loss 13 114 26 228 Net periodic benefit cost $ 385 $ 417 $ 770 $ 834
Split-Dollar Life Insurance Benefit Plan
Benefit plans
Schedule of change in projected benefit obligation	June 30, December 31, 2023 2022 (Dollars in thousands) Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 7,060 $ 9,244 Interest cost 182 246 Actuarial loss — (2,430) Projected benefit obligation at end of period $ 7,242 $ 7,060
Schedule of amounts recognized in accumulated other comprehensive loss	June 30, December 31, 2023 2022 (Dollars in thousands) Net actuarial loss $ 2,442 $ 2,301 Prior transition obligation 745 790 Accumulated other comprehensive loss $ 3,187 $ 3,091
Schedule of components of net periodic benefit cost	Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (Dollars in thousands) Amortization of prior transition obligation and actuarial losses $ (48) $ (10) $ (95) $ (21) Interest cost 91 61 182 123 Net periodic benefit cost $ 43 $ 51 $ 87 $ 102

Fair Value (Tables)

Fair Value (Tables)	6 Months Ended
Fair Value (Tables)	Jun. 30, 2023
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 June 30, 2023 Available-for-sale securities: U.S. Treasury $ 421,146 $ 421,146 $ — $ — Agency mortgage-backed securities 64,912 — 64,912 — I/O strip receivables 139 — 139 — Assets at December 31, 2022 Available-for-sale securities: U.S. Treasury $ 418,474 $ 418,474 $ — $ — Agency mortgage-backed securities 71,122 — 71,122 — I/O strip receivables 152 — 152 —
Schedule of carrying amounts and estimated fair values of financial instruments	The carrying amounts and estimated fair values of financial instruments at June 30, 2023 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 $ 511,502 $ 511,502 $ — $ — $ 511,502 Securities available-for-sale 486,058 421,146 64,912 — 486,058 Securities held-to-maturity 682,095 — 585,771 — 585,771 Loans (including loans held-for-sale) 3,291,920 (1) — 3,136 3,082,060 3,085,196 FHLB stock, FRB stock, and other investments 32,531 — — — N/A Accrued interest receivable 14,592 1,309 1,741 11,542 14,592 I/O strips receivables 139 — 139 — 139 Liabilities: Time deposits $ 335,666 $ — $ 339,196 $ — $ 339,196 Other deposits 4,165,106 — 4,165,106 — 4,165,106 Subordinated debt 39,425 — 31,425 — 31,425 Accrued interest payable 2,308 — 2,308 — 2,308 (1) Before allowance for credit losses on loans of $47,803,000. The carrying amounts and estimated fair values of the Company’s financial instruments at December 31, 2022: 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 $ 306,603 $ 306,603 $ — $ — $ 306,603 Securities available-for-sale 489,596 418,474 71,122 — 489,596 Securities held-to-maturity 714,990 — 614,452 — 614,452 Loans (including loans held-for-sale) 3,301,006 (1) — 2,456 3,080,485 3,082,941 FHLB stock, FRB stock, and other investments 32,522 — — — N/A Accrued interest receivable 15,047 1,328 1,836 11,883 15,047 I/O strips receivables 152 — 152 — 152 Liabilities: Time deposits $ 143,958 $ — $ 144,702 $ — $ 144,702 Other deposits 4,245,646 — 4,245,646 — 4,245,646 Subordinated debt 39,350 — 36,025 — 36,025 Accrued interest payable 600 — 600 — 600 (1) Before allowance for credit losses on loans of $47,512,000.

Equity Plan (Tables)

Equity Plan (Tables)	6 Months Ended
Equity Plan (Tables)	Jun. 30, 2023
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, 2023 2,527,173 $ 10.44 Granted 377,000 $ 7.41 Exercised (172,986) $ 5.76 Forfeited or expired (53,694) $ 10.59 Outstanding at June 30, 2023 2,677,493 $ 10.31 5.97 $ 1,325,121 Vested or expected to vest 2,516,843 5.97 $ 1,245,614 Exercisable at June 30, 2023 1,833,258 4.57 $ 1,004,071
Schedule of information related to the Equity Plans	Six Months Ended June 30, 2023 2022 Intrinsic value of options exercised $ 620,013 $ 706,375 Cash received from option exercise $ 996,453 $ 848,739 Tax benefit (expense) realized from option exercises $ (5,902) $ 52,952 Weighted average fair value of options granted $ 1.32 $ 2.18
Schedule of restricted stock activity under Equity Plans	Weighted Average Grant Number Date Fair Total Restricted Stock Award of Shares Value Nonvested shares at January 1, 2023 253,491 $ 11.05 Granted 65,446 $ 7.41 Vested (129,191) $ 7.71 Nonvested shares at June 30, 2023 189,746 $ 10.88
Schedule of restricted stock units under the Equity Plans	Weighted Average Grant Number Date Fair Total RSUs of Shares Value Nonvested shares at January 1, 2023 — $ — Granted 119,362 $ 7.41 Nonvested shares at June 30, 2023 119,362 $ 7.41
Schedule of performance based restricted stock units under the Equity Plans	Weighted Average Grant Number Date Fair Total PRSUs of Shares Value Nonvested shares at January 1, 2023 — $ — Granted 119,358 $ 7.41 Nonvested shares at June 30, 2023 119,358 $ 7.41

Capital Requirements (Tables)

Capital Requirements (Tables)	6 Months Ended
Capital Requirements (Tables)	Jun. 30, 2023
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 June 30, 2023 Total Capital $ 577,981 15.4 % $ 393,260 10.5 % (to risk-weighted assets) Tier 1 Capital $ 495,624 13.2 % $ 318,353 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 495,624 13.2 % $ 262,173 7.0 % (to risk-weighted assets) Tier 1 Capital $ 495,624 9.7 % $ 204,424 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, 2022 Total Capital $ 554,810 14.8 % $ 393,461 10.5 % (to risk-weighted assets) Tier 1 Capital $ 475,609 12.7 % $ 318,516 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 475,609 12.7 % $ 262,307 7.0 % (to risk-weighted assets) Tier 1 Capital $ 475,609 9.2 % $ 207,852 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 June 30, 2023 Total Capital $ 555,750 14.8 % $ 374,769 10.0 % $ 393,508 10.5 % (to risk-weighted assets) Tier 1 Capital $ 512,818 13.7 % $ 299,815 8.0 % $ 318,554 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 512,818 13.7 % $ 243,600 6.5 % $ 262,338 7.0 % (to risk-weighted assets) Tier 1 Capital $ 512,818 10.0 % $ 255,413 5.0 % $ 204,330 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, 2022 Total Capital $ 532,576 14.2 % $ 374,572 10.0 % $ 393,301 10.5 % (to risk-weighted assets) Tier 1 Capital $ 492,725 13.2 % $ 299,658 8.0 % $ 318,387 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 492,725 13.2 % $ 243,472 6.5 % $ 262,201 7.0 % (to risk-weighted assets) Tier 1 Capital $ 492,725 9.5 % $ 259,740 5.0 % $ 207,792 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)	6 Months Ended
Commitments and Loss Contingencies (Tables)	Jun. 30, 2023
Commitments and Loss Contingencies
Schedule of commitments to extend credit	June 30, 2023 December 31, 2022 Fixed Variable Fixed Variable Rate Rate Total Rate Rate Total (Dollars in thousands) Unused lines of credit and commitments to make loans $ 72,004 $ 1,040,297 $ 1,112,301 $ 87,348 $ 1,036,847 $ 1,124,195 Standby letters of credit 5,049 9,354 14,403 1,565 8,859 10,424 $ 77,053 $ 1,049,651 $ 1,126,704 $ 88,913 $ 1,045,706 $ 1,134,619

Revenue Recognition (Tables)

Revenue Recognition (Tables)	6 Months Ended
Revenue Recognition (Tables)	Jun. 30, 2023
Revenue Recognition
Schedule of noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606	Three Months Ended June 30, 2023 2022 (Dollars in thousands) Noninterest Income In-scope of Topic 606: Service charges and fees on deposit accounts $ 901 $ 867 Total noninterest income in-scope of Topic 606 901 867 Noninterest Income Out-of-scope of Topic 606 1,173 1,231 Total noninterest income $ 2,074 $ 2,098 Six Months Ended June 30, 2023 2022 (Dollars in thousands) Noninterest Income In-scope of Topic 606: Service charges and fees on deposit accounts $ 2,644 $ 1,479 Total noninterest income in-scope of Topic 606 2,644 1,479 Noninterest Income Out-of-scope of Topic 606 2,196 3,079 Total noninterest income $ 4,840 $ 4,558

Noninterest Expense (Tables)

Noninterest Expense (Tables)	6 Months Ended
Noninterest Expense (Tables)	Jun. 30, 2023
Noninterest Expense
Schedule of noninterest expense	Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (Dollars in thousands) Salaries and employee benefits $ 13,987 $ 13,476 $ 28,796 $ 27,297 Occupancy and equipment 2,422 2,277 4,822 4,714 Insurance expense 1,512 1,043 3,032 2,086 Professional fees 1,149 1,291 2,548 2,371 Data processing 913 681 1,687 1,332 Software subscriptions 631 462 1,221 874 Amortization of intangible assets 601 658 1,203 1,317 Other 3,776 3,302 7,083 6,451 Total noninterest expense $ 24,991 $ 23,190 $ 50,392 $ 46,442

Leases (Tables)

Leases (Tables)	6 Months Ended
Leases (Tables)	Jun. 30, 2023
Leases
Schedule of leases	Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (Dollars in thousands) Operating Lease Cost (Cost resulting from lease payments) $ 1,709 $ 1,620 $ 3,410 $ 3,240 Operating Lease - Operating Cash Flows (Fixed Payments) $ 1,703 $ 1,235 $ 3,348 $ 2,445 Operating Lease - ROU assets $ 33,267 $ 32,434 $ 33,267 $ 32,434 Operating Lease - Liabilities $ 33,267 $ 32,434 $ 33,267 $ 32,434 Weighted Average Lease Term - Operating Leases 6.29 years 7.03 years 6.29 years 7.03 years Weighted Average Discount Rate - Operating Leases 4.83% 4.50% 4.83% 4.50%
Schedule of maturity analysis shows the undiscounted cash flows due on the company's operating lease liabilities	(Dollars in thousands) 2023 remaining $ 3,334 2024 6,506 2025 5,979 2026 5,445 2027 5,288 Thereafter 12,268 Total undiscounted cash flows 38,820 Discount on cash flows (5,553) Total lease liability $ 33,267

Business Segment Information (T

Business Segment Information (Tables)	6 Months Ended
Business Segment Information (Tables)	Jun. 30, 2023
Business Segment Information
Schedule of information by operating segment	Three Months Ended June 30, 2023 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 54,494 $ 3,847 $ 58,341 Intersegment interest allocations 524 (524) — Total interest expense 12,048 — 12,048 Net interest income 42,970 3,323 46,293 Provision for (recapture of) credit losses on loans 409 (149) 260 Net interest income after provision 42,561 3,472 46,033 Noninterest income 2,017 57 2,074 Noninterest expense 23,329 1,662 24,991 Intersegment expense allocations 152 (152) — Income before income taxes 21,401 1,715 23,116 Income tax expense 6,206 507 6,713 Net income $ 15,195 $ 1,208 $ 16,403 Total assets $ 5,227,310 $ 84,527 $ 5,311,837 Loans, net of deferred fees $ 3,227,905 $ 60,879 $ 3,288,784 Goodwill $ 154,587 $ 13,044 $ 167,631 Three Months Ended June 30, 2022 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 40,427 $ 3,129 $ 43,556 Intersegment interest allocations 321 (321) — Total interest expense 1,677 — 1,677 Net interest income 39,071 2,808 41,879 Provision (recapture) for credit losses on loans (328) 147 (181) Net interest income after provision 39,399 2,661 42,060 Noninterest income 1,974 124 2,098 Noninterest expense 21,559 1,631 23,190 Intersegment expense allocations 128 (128) — Income before income taxes 19,942 1,026 20,968 Income tax expense 5,844 303 6,147 Net income $ 14,098 $ 723 $ 14,821 Total assets $ 5,280,953 $ 75,888 $ 5,356,841 Loans, net of deferred fees $ 3,019,076 $ 63,376 $ 3,082,452 Goodwill $ 154,587 $ 13,044 $ 167,631 (1) Includes the holding company’s results of operations Six Months Ended June 30, 2023 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 106,767 $ 7,848 $ 114,615 Intersegment interest allocations 1,229 (1,229) — Total interest expense 19,064 — 19,064 Net interest income 88,932 6,619 95,551 Provision for (recapture of) credit losses on loans 553 (261) 292 Net interest income after provision 88,379 6,880 95,259 Noninterest income 4,699 141 4,840 Noninterest expense 47,057 3,335 50,392 Intersegment expense allocations 326 (326) — Income before income taxes 46,347 3,360 49,707 Income tax expense 13,394 993 14,387 Net income $ 32,953 $ 2,367 $ 35,320 Total assets $ 5,227,310 $ 84,527 $ 5,311,837 Loans, net of deferred fees $ 3,227,905 $ 60,879 $ 3,288,784 Goodwill $ 154,587 $ 13,044 $ 167,631 Six Months Ended June 30, 2022 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 77,540 $ 5,922 $ 83,462 Intersegment interest allocations 558 (558) — Total interest expense 3,362 — 3,362 Net interest income 74,736 5,364 80,100 Provision (recapture) for credit losses on loans (867) 119 (748) Net interest income after provision 75,603 5,245 80,848 Noninterest income 4,372 186 4,558 Noninterest expense 43,326 3,116 46,442 Intersegment expense allocations 242 (242) — Income before income taxes 36,891 2,073 38,964 Income tax expense 10,664 613 11,277 Net income $ 26,227 $ 1,460 $ 27,687 Total assets $ 5,280,953 $ 75,888 $ 5,356,841 Loans, net of deferred fees $ 3,019,076 $ 63,376 $ 3,082,452 Goodwill $ 154,587 $ 13,044 $ 167,631 (1) Includes the holding company’s results of operations

Basis of Presentation (Details)

Basis of Presentation (Details)	6 Months Ended
Basis of Presentation (Details)	Jun. 30, 2023 customer segment
Segment Reporting
Number of customers accounting for more than 10 percent of revenue for HBC or the Company \| customer	0
Number of Operating Segments \| segment	2

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Reconciliation of factors used in computing basic and diluted earnings per common share
Net income	$ 16,403	$ 18,917	$ 14,821	$ 12,866	$ 35,320	$ 27,687
Weighted average common shares outstanding for basic earnings per common share (in shares)	61,035,435		60,542,170		60,971,828	60,468,027
Dilutive potential common shares	230,624		426,984		270,349	477,684
Shares used in computing diluted earnings per common share (in shares)	61,266,059		60,969,154		61,242,177	60,945,711
Basic earnings per share (in dollars per share)	$ 0.27		$ 0.24		$ 0.58	$ 0.46
Diluted earnings per share (in dollars per share)	$ 0.27		$ 0.24		$ 0.58	$ 0.45
Number of shares in computing diluted earnings per common share	2,269,555		1,234,662		1,681,553	1,146,888
Restricted Stock Units (RSUs)
Reconciliation of factors used in computing basic and diluted earnings per common share
Number of shares in computing diluted earnings per common share	78,700				39,569

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Loss) (AOCI) - Changes in AOCI by Component (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Changes in AOCI by Component
Balance at the beginning of the period, net of taxes		$ (16,856)			$ (16,856)
Net current period other comprehensive income (loss), net of taxes	$ (2,941)	2,539	$ (1,864)	$ (3,058)	(402)	$ (4,922)
Balance at the end of the period, net of taxes	(17,258)				(17,258)
Accumulated Other Comprehensive Loss
Changes in AOCI by Component
Balance at the beginning of the period, net of taxes	(14,317)	(16,856)	(14,054)	(10,996)	(16,856)	(10,996)
Other comprehensive (loss) before reclassification, net of taxes	(2,916)		(1,937)		(353)	(5,068)
Amounts reclassified from other comprehensive income (loss), net of taxes	(25)		73		(49)	146
Net current period other comprehensive income (loss), net of taxes	(2,941)	2,539	(1,864)	(3,058)	(402)	(4,922)
Balance at the end of the period, net of taxes	(17,258)	(14,317)	(15,918)	(14,054)	(17,258)	(15,918)
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	(8,817)	(11,394)	(975)	2,153	(11,394)	2,153
Other comprehensive (loss) before reclassification, net of taxes	(2,902)		(1,934)		(325)	(5,062)
Net current period other comprehensive income (loss), net of taxes	(2,902)		(1,934)		(325)	(5,062)
Balance at the end of the period, net of taxes	(11,719)	(8,817)	(2,909)	(975)	(11,719)	(2,909)
Defined Benefit Pension Plan Items
Changes in AOCI by Component
Balance at the beginning of the period, net of taxes	(5,500)	(5,462)	(13,079)	(13,149)	(5,462)	(13,149)
Other comprehensive (loss) before reclassification, net of taxes	(14)		(3)		(28)	(6)
Amounts reclassified from other comprehensive income (loss), net of taxes	(25)		73		(49)	146
Net current period other comprehensive income (loss), net of taxes	(39)		70		(77)	140
Balance at the end of the period, net of taxes	$ (5,539)	$ (5,500)	$ (13,009)	$ (13,079)	$ (5,539)	$ (13,009)

Accumulated Other Comprehensi_4

Accumulated Other Comprehensive Income (Loss) (AOCI) - Amount Reclassified from AOCI (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Amount Reclassified from AOCI
Interest income on taxable securities	$ 6,982		$ 4,407		$ 14,038	$ 7,851
Income tax expense	(6,713)		(6,147)		(14,387)	(11,277)
Net income	16,403	$ 18,917	14,821	$ 12,866	35,320	27,687
Defined Benefit Pension Plan Items
Amount Reclassified from AOCI
Net of tax	25		(73)		49	(146)
Defined Benefit Pension Plan Items \| Amount Reclassified from AOCI
Amount Reclassified from AOCI
Other noninterest expense	35		(104)		69	(207)
Income tax benefit	(10)		31		(20)	61
Net of tax	25		(73)		49	(146)
Prior transition obligation \| Amount Reclassified from AOCI
Amount Reclassified from AOCI
Other noninterest expense	48		10		95	21
Prior service cost \| Amount Reclassified from AOCI
Amount Reclassified from AOCI
Other noninterest expense	(13)		(114)		(26)	(228)
Accumulated Other Comprehensive Loss
Amount Reclassified from AOCI
Net of tax	25		(73)		49	(146)
Accumulated Other Comprehensive Loss \| Amount Reclassified from AOCI
Amount Reclassified from AOCI
Net of tax	$ 25		$ (73)		$ 49	$ (146)

Securities - Amortized Cost and

Securities - Amortized Cost and Estimated Fair Value of Securities - Securities Available-for-sale (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Securities available-for-sale:
Total	$ 502,620	$ 505,713
Gross Unrealized (Losses)	(16,562)	(16,117)
Estimated Fair Value	486,058	489,596
U.S. Treasury
Securities available-for-sale:
Total	432,049	428,797
Gross Unrealized (Losses)	(10,903)	(10,323)
Estimated Fair Value	421,146	418,474
Agency mortgage-backed securities
Securities available-for-sale:
Total	70,571	76,916
Gross Unrealized (Losses)	(5,659)	(5,794)
Estimated Fair Value	$ 64,912	$ 71,122

Securities - Amortized Cost a_2

Securities - Amortized Cost and Estimated Fair Value of Securities - Securities Held-to-maturity (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Securities held-to-maturity:
Total	$ 682,108,000	$ 715,004,000
Gross Unrecognized Gains	188,000	244,000
Gross Unrecognized (Losses)	(96,525,000)	(100,796,000)
Estimated Fair Value	585,771,000	614,452,000
Allowance for credit loss current period	(13,000)	(14,000)
Agency mortgage-backed securities
Securities held-to-maturity:
Total	648,337,000	677,381,000
Gross Unrecognized Gains	187,000	235,000
Gross Unrecognized (Losses)	(95,472,000)	(99,977,000)
Estimated Fair Value	553,052,000	577,639,000
Municipals - exempt from Federal tax
Securities held-to-maturity:
Total	33,771,000	37,623,000
Gross Unrecognized Gains	1,000	9,000
Gross Unrecognized (Losses)	(1,053,000)	(819,000)
Estimated Fair Value	32,719,000	36,813,000
Allowance for credit loss current period	$ (13,000)	$ (14,000)

Securities - Securities with Un

Securities - Securities with Unrealized Losses - Securities Held-to-maturity (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Securities, Fair Value
Less Than 12 Months	$ 222,904	$ 489,596
12 Months or More	263,154
Total	486,058	489,596
Less Than 12 Months	40,185	167,271
12 Months or More	529,691	429,257
Total	569,876	596,528
Securities, Unrealized (Losses)
Less Than 12 Months	(4,454)	(16,117)
12 Months or More	(12,108)
Total	(16,562)	(16,117)
Less Than 12 Months	(1,212)	(13,685)
12 Months or More	(95,313)	(87,111)
Total	(96,525)	(100,796)
Agency mortgage-backed securities
Securities, Fair Value
Less Than 12 Months	3,323	71,122
12 Months or More	61,589
Total	64,912	71,122
Less Than 12 Months	17,239	136,264
12 Months or More	523,809	429,257
Total	541,048	565,521
Securities, Unrealized (Losses)
Less Than 12 Months	(181)	(5,794)
12 Months or More	(5,478)
Total	(5,659)	(5,794)
Less Than 12 Months	(540)	(12,866)
12 Months or More	(94,932)	(87,111)
Total	(95,472)	(99,977)
U.S. Treasury
Securities, Fair Value
Less Than 12 Months	219,581	418,474
12 Months or More	201,565
Total	421,146	418,474
Securities, Unrealized (Losses)
Less Than 12 Months	(4,273)	(10,323)
12 Months or More	(6,630)
Total	(10,903)	(10,323)
Municipals - exempt from Federal tax
Securities, Fair Value
Less Than 12 Months	22,946	31,007
12 Months or More	5,882
Total	28,828	31,007
Securities, Unrealized (Losses)
Less Than 12 Months	(672)	(819)
12 Months or More	(381)
Total	$ (1,053)	$ (819)

Securities - Additional Informa

Securities - Additional Information (Details)	6 Months Ended
Securities - Additional Information (Details)	Jun. 30, 2023 item security
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	453
Number of available for sale securities held	173
Number of held to maturity securities held	280
Number of securities with fair values below amortized cost	441

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	Jun. 30, 2023	Dec. 31, 2022
Available-for-sale, Amortized Cost
Due 3 months or less	$ 19,943
Due after three months through one year	173,446
Due after one through five years	238,660
Agency mortgage-backed securities	70,571
Total	502,620	$ 505,713
Available-for-sale, Estimated Fair Value
Due 3 months or less	19,909
Due after three months through one year	170,289
Due after one year through five years	230,948
Agency mortgage-backed securities	64,912
Total	$ 486,058	$ 489,596

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	Jun. 30, 2023	Dec. 31, 2022
Held-to-maturity, Amortized Cost
Due three months or less	$ 555
Due after three months through one year	400
Due after one year through five years	7,219
Due after five years through ten years	25,020
Due after ten years	577
Agency mortgage-backed securities	648,337
Total	682,108
Held-to-maturity, Estimated Fair Value
Due three months or less	555
Due after three months through one year	399
Due after one year through five years	7,067
Due after five years through ten years	24,135
Due after ten years	563
Agency mortgage-backed securities	553,052
Total	$ 585,771	$ 614,452

Securities - Securities Pledged

Securities - Securities Pledged to Secure Public Deposits and for Other Purposes (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
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	$ 1,071,652,000	$ 66,272,000

Securities - Roll-forward by ma

Securities - Roll-forward by major security type (Details)	6 Months Ended
Securities - Roll-forward by major security type (Details)	Jun. 30, 2023 USD ($)
Securities
Allowance for credit loss current period - Beginning Balance	$ 14,000
Provision for (recapture of) credit losses	(1,000)
Allowance for credit loss current period - Ending Balance	$ 13,000

Loans and Allowance for Credi_3

Loans and Allowance for Credit Losses on Loans - Loans Balance (Details) - USD ($)	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021
Loans held-for-investment:
Total loan balance	$ 3,289,181,000		$ 3,299,067,000
Deferred loan fees, net	(397,000)		(517,000)
Total loan balance	3,288,784,000		3,298,550,000	$ 3,082,452,000
Allowance for credit losses on loans	(47,803,000)	$ (47,273,000)	(47,512,000)	(45,490,000)	$ (42,788,000)	$ (43,290,000)
Loans, net	3,240,981,000		3,251,038,000
Commercial. \| Commercial
Loans held-for-investment:
Total loan balance	466,354,000		533,915,000
Allowance for credit losses on loans	(6,550,000)	(6,534,000)	(6,617,000)	(6,602,000)	(6,801,000)	(8,414,000)
Commercial. \| SBA Paycheck Protection Program ("PPP") loans
Loans held-for-investment:
Total loan balance	520,000
Loans, net			1,166,000
Commercial. \| Bay View Funding
Loans held-for-investment:
Loans, net	60,879,000		79,263,000
Real estate \| CRE - Owner Occupied
Loans held-for-investment:
Total loan balance	608,031,000		614,663,000
Allowance for credit losses on loans	(5,463,000)	(5,453,000)	(5,751,000)	(6,009,000)	(6,397,000)	(7,954,000)
Real estate \| CRE - Non-Owner Occupied
Loans held-for-investment:
Total loan balance	1,147,313,000		1,066,368,000
Allowance for credit losses on loans	(23,523,000)	(22,677,000)	(22,135,000)	(21,474,000)	(19,413,000)	(17,125,000)
Real estate \| Land & Construction
Loans held-for-investment:
Total loan balance	162,816,000		163,577,000
Allowance for credit losses on loans	(2,870,000)	(3,176,000)	(2,941,000)	(2,498,000)	(2,006,000)	(1,831,000)
Real estate \| Home Equity
Loans held-for-investment:
Total loan balance	128,009,000		120,724,000
Allowance for credit losses on loans	(730,000)	(688,000)	(666,000)	(695,000)	(722,000)	(864,000)
Real estate \| Multi-Family
Loans held-for-investment:
Total loan balance	244,959,000		244,882,000
Allowance for credit losses on loans	(4,383,000)	(4,392,000)	(3,366,000)	(2,824,000)	(2,544,000)	(2,796,000)
Real estate \| Residential Mortgage
Loans held-for-investment:
Total loan balance	514,064,000		537,905,000
Allowance for credit losses on loans	(4,129,000)	(4,196,000)	(5,907,000)	(5,232,000)	(4,757,000)	(4,132,000)
Consumer \| Consumer and Other
Loans held-for-investment:
Total loan balance	17,635,000		17,033,000
Allowance for credit losses on loans	$ (155,000)	$ (157,000)	$ (129,000)	$ (156,000)	$ (148,000)	$ (174,000)

Loans and Allowance for Credi_4

Loans and Allowance for Credit Losses on Loans - Changes in the Allowance for Loan Losses (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning of period balance	$ 47,273,000	$ 42,788,000	$ 47,512,000	$ 43,290,000
Charge-offs	(24,000)	(355,000)	(404,000)	(371,000)
Recoveries	294,000	3,238,000	403,000	3,319,000
Net (charge-offs) recoveries	270,000	2,883,000	(1,000)	2,948,000
Provision for (recapture of) credit losses on loans	260,000	(181,000)	292,000	(748,000)
End of period balance	47,803,000	45,490,000	47,803,000	45,490,000
Commercial. \| Commercial
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning of period balance	6,534,000	6,801,000	6,617,000	8,414,000
Charge-offs	(24,000)	(355,000)	(158,000)	(371,000)
Recoveries	108,000	79,000	188,000	133,000
Net (charge-offs) recoveries	84,000	(276,000)	30,000	(238,000)
Provision for (recapture of) credit losses on loans	(68,000)	77,000	(97,000)	(1,574,000)
End of period balance	6,550,000	6,602,000	6,550,000	6,602,000
Real estate \| CRE - Owner Occupied
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning of period balance	5,453,000	6,397,000	5,751,000	7,954,000
Recoveries	4,000	4,000	8,000	7,000
Net (charge-offs) recoveries	4,000	4,000	8,000	7,000
Provision for (recapture of) credit losses on loans	6,000	(392,000)	(296,000)	(1,952,000)
End of period balance	5,463,000	6,009,000	5,463,000	6,009,000
Real estate \| CRE - Non-Owner Occupied
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning of period balance	22,677,000	19,413,000	22,135,000	17,125,000
Provision for (recapture of) credit losses on loans	846,000	2,061,000	1,388,000	4,349,000
End of period balance	23,523,000	21,474,000	23,523,000	21,474,000
Real estate \| Land & Construction
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning of period balance	3,176,000	2,006,000	2,941,000	1,831,000
Provision for (recapture of) credit losses on loans	(306,000)	492,000	(71,000)	667,000
End of period balance	2,870,000	2,498,000	2,870,000	2,498,000
Real estate \| Home Equity
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning of period balance	688,000	722,000	666,000	864,000
Charge-offs			(246,000)
Recoveries	182,000	31,000	207,000	55,000
Net (charge-offs) recoveries	182,000	31,000	(39,000)	55,000
Provision for (recapture of) credit losses on loans	(140,000)	(58,000)	103,000	(224,000)
End of period balance	730,000	695,000	730,000	695,000
Real estate \| Multi-Family
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning of period balance	4,392,000	2,544,000	3,366,000	2,796,000
Provision for (recapture of) credit losses on loans	(9,000)	280,000	1,017,000	28,000
End of period balance	4,383,000	2,824,000	4,383,000	2,824,000
Real estate \| Residential Mortgage
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning of period balance	4,196,000	4,757,000	5,907,000	4,132,000
Provision for (recapture of) credit losses on loans	(67,000)	475,000	(1,778,000)	1,100,000
End of period balance	4,129,000	5,232,000	4,129,000	5,232,000
Consumer \| Consumer and Other
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning of period balance	157,000	148,000	129,000	174,000
Recoveries		3,124,000		3,124,000
Net (charge-offs) recoveries		3,124,000		3,124,000
Provision for (recapture of) credit losses on loans	(2,000)	(3,116,000)	26,000	(3,142,000)
End of period balance	$ 155,000	$ 156,000	$ 155,000	$ 156,000

Loans and Allowance for Credi_5

Loans and Allowance for Credit Losses on Loans - Nonaccrual Status and Loans Past Due Over 90 Days (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Nonperforming Loans by Class
Nonaccrual with no Specific Allowance for Credit Losses	$ 1,969	$ 416
Nonaccrual with Specific Allowance for Credit	1,306	324
Restructured and loans over 90 days past due and still accruing	2,262	1,685
Total	5,537	2,425
Commercial. \| Commercial
Nonperforming Loans by Class
Nonaccrual with no Specific Allowance for Credit Losses		318
Nonaccrual with Specific Allowance for Credit	1,306	324
Restructured and loans over 90 days past due and still accruing	2,172	349
Total	3,478	991
Real estate \| CRE - Non-Owner Occupied
Nonperforming Loans by Class
Restructured and loans over 90 days past due and still accruing		1,336
Total		1,336
Real estate \| Home Equity
Nonperforming Loans by Class
Nonaccrual with no Specific Allowance for Credit Losses	96	98
Restructured and loans over 90 days past due and still accruing	90
Total	186	$ 98
Real estate \| Residential Mortgage
Nonperforming Loans by Class
Nonaccrual with no Specific Allowance for Credit Losses	1,873
Total	$ 1,873

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 ($)	Jun. 30, 2023	Dec. 31, 2022
Aging of Past Due Loans by Class of Loans
Total loan balance	$ 3,289,181,000	$ 3,299,067,000
30-59 Days Past Due
Aging of Past Due Loans by Class of Loans
Total loan balance	5,009,000	11,690,000
60-89 Days Past Due
Aging of Past Due Loans by Class of Loans
Total loan balance	3,126,000	3,337,000
90 Days or Greater Past Due
Aging of Past Due Loans by Class of Loans
Total loan balance	5,145,000	2,039,000
Past due
Aging of Past Due Loans by Class of Loans
Total loan balance	13,280,000	17,066,000
Current
Aging of Past Due Loans by Class of Loans
Total loan balance	3,275,901,000	3,282,001,000
Commercial. \| Commercial
Aging of Past Due Loans by Class of Loans
Total loan balance	466,354,000	533,915,000
Commercial. \| Commercial \| 30-59 Days Past Due
Aging of Past Due Loans by Class of Loans
Total loan balance	5,009,000	7,236,000
Commercial. \| Commercial \| 60-89 Days Past Due
Aging of Past Due Loans by Class of Loans
Total loan balance	1,829,000	2,519,000
Commercial. \| Commercial \| 90 Days or Greater Past Due
Aging of Past Due Loans by Class of Loans
Total loan balance	3,086,000	703,000
Commercial. \| Commercial \| Past due
Aging of Past Due Loans by Class of Loans
Total loan balance	9,924,000	10,458,000
Commercial. \| Commercial \| Current
Aging of Past Due Loans by Class of Loans
Total loan balance	456,430,000	523,457,000
Real estate \| CRE - Owner Occupied
Aging of Past Due Loans by Class of Loans
Total loan balance	608,031,000	614,663,000
Real estate \| CRE - Owner Occupied \| 30-59 Days Past Due
Aging of Past Due Loans by Class of Loans
Total loan balance		252,000
Real estate \| CRE - Owner Occupied \| Past due
Aging of Past Due Loans by Class of Loans
Total loan balance		252,000
Real estate \| CRE - Owner Occupied \| Current
Aging of Past Due Loans by Class of Loans
Total loan balance	608,031,000	614,411,000
Real estate \| CRE - Non-Owner Occupied
Aging of Past Due Loans by Class of Loans
Total loan balance	1,147,313,000	1,066,368,000
Real estate \| CRE - Non-Owner Occupied \| 90 Days or Greater Past Due
Aging of Past Due Loans by Class of Loans
Total loan balance		1,336,000
Real estate \| CRE - Non-Owner Occupied \| Past due
Aging of Past Due Loans by Class of Loans
Total loan balance		1,336,000
Real estate \| CRE - Non-Owner Occupied \| Current
Aging of Past Due Loans by Class of Loans
Total loan balance	1,147,313,000	1,065,032,000
Real estate \| Land & Construction
Aging of Past Due Loans by Class of Loans
Total loan balance	162,816,000	163,577,000
Real estate \| Land & Construction \| Current
Aging of Past Due Loans by Class of Loans
Total loan balance	162,816,000	163,577,000
Real estate \| Home Equity
Aging of Past Due Loans by Class of Loans
Total loan balance	128,009,000	120,724,000
Real estate \| Home Equity \| 60-89 Days Past Due
Aging of Past Due Loans by Class of Loans
Total loan balance		98,000
Real estate \| Home Equity \| 90 Days or Greater Past Due
Aging of Past Due Loans by Class of Loans
Total loan balance	186,000
Real estate \| Home Equity \| Past due
Aging of Past Due Loans by Class of Loans
Total loan balance	186,000	98,000
Real estate \| Home Equity \| Current
Aging of Past Due Loans by Class of Loans
Total loan balance	127,823,000	120,626,000
Real estate \| Multi-Family
Aging of Past Due Loans by Class of Loans
Total loan balance	244,959,000	244,882,000
Real estate \| Multi-Family \| Current
Aging of Past Due Loans by Class of Loans
Total loan balance	244,959,000	244,882,000
Real estate \| Residential Mortgage
Aging of Past Due Loans by Class of Loans
Total loan balance	514,064,000	537,905,000
Real estate \| Residential Mortgage \| 30-59 Days Past Due
Aging of Past Due Loans by Class of Loans
Total loan balance		4,202,000
Real estate \| Residential Mortgage \| 60-89 Days Past Due
Aging of Past Due Loans by Class of Loans
Total loan balance	1,297,000	720,000
Real estate \| Residential Mortgage \| 90 Days or Greater Past Due
Aging of Past Due Loans by Class of Loans
Total loan balance	1,873,000
Real estate \| Residential Mortgage \| Past due
Aging of Past Due Loans by Class of Loans
Total loan balance	3,170,000	4,922,000
Real estate \| Residential Mortgage \| Current
Aging of Past Due Loans by Class of Loans
Total loan balance	510,894,000	532,983,000
Consumer \| Consumer and Other
Aging of Past Due Loans by Class of Loans
Total loan balance	17,635,000	17,033,000
Consumer \| Consumer and Other \| Current
Aging of Past Due Loans by Class of Loans
Total loan balance	$ 17,635,000	$ 17,033,000

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 ($)	Jun. 30, 2023	Dec. 31, 2022
Aging of Past Due Loans by Class of Loans
Total loan balance	$ 3,289,181,000	$ 3,299,067,000
Nonaccrual loans	5,537,000	2,425,000
30 days or greater past due
Aging of Past Due Loans by Class of Loans
Nonaccrual loans	2,928,000	479,000
Less than 30 days past due
Aging of Past Due Loans by Class of Loans
Nonaccrual loans	347,000	261,000
Past due
Aging of Past Due Loans by Class of Loans
Total loan balance	$ 13,280,000	$ 17,066,000

Loans and Allowance for Credi_8

Loans and Allowance for Credit Losses on Loans - Credit Quality Indicators (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Loans
2023/ 2022	$ 257,459	$ 735,274
2022/ 2021	660,957	874,235
2021/ 2020	807,778	161,375
2020/ 2019	142,407	240,466
2019/ 2018	231,768	155,623
Prior Periods	783,314	680,984
Revolving	405,498	451,110
Total loan balance	3,289,181	3,299,067
Balance to report	3,240,981	3,251,038
Loan classified as loss
Loans
Balance to report	0	0
Risk Grades [Member]
Loans
2023/ 2022	257,459	735,274
2022/ 2021	660,957	874,235
2021/ 2020	807,778	161,375
2020/ 2019	142,407	240,466
2019/ 2018	231,768	155,623
Prior Periods	783,314	680,984
Revolving	405,498	451,110
Total loan balance	3,289,181	3,299,067
Risk Grades [Member] \| Pass [Member]
Loans
2023/ 2022	254,810	731,862
2022/ 2021	656,163	870,023
2021/ 2020	802,370	159,659
2020/ 2019	140,623	236,243
2019/ 2018	224,135	153,618
Prior Periods	745,916	653,756
Revolving	392,294	437,326
Total loan balance	3,216,311	3,242,487
Risk Grades [Member] \| Special Mention [Member]
Loans
2023/ 2022	2,645	3,408
2022/ 2021	2,921	3,175
2021/ 2020	851	1,716
2020/ 2019	838	4,078
2019/ 2018	6,084	1,482
Prior Periods	21,189	20,031
Revolving	7,841	8,146
Total loan balance	42,369	42,036
Risk Grades [Member] \| Substandard [Member]
Loans
2023/ 2022	4	4
2022/ 2021		660
2021/ 2020	4,237
2020/ 2019	946	145
2019/ 2018	1,279	193
Prior Periods	15,788	7,164
Revolving	4,972	5,638
Total loan balance	27,226	13,804
Risk Grades [Member] \| Substandard-Nonaccrual [Member]
Loans
2022/ 2021	1,873	377
2021/ 2020	320
2019/ 2018	270	330
Prior Periods	421	33
Revolving	391
Total loan balance	3,275	740
Commercial. \| Commercial
Loans
2023/ 2022	94,062	106,381
2022/ 2021	31,855	38,091
2021/ 2020	29,192	24,598
2020/ 2019	17,496	20,540
2019/ 2018	16,319	12,419
Prior Periods	29,043	27,293
Revolving	248,387	304,593
Total loan balance	466,354	533,915
Commercial. \| Commercial \| Pass [Member]
Loans
2023/ 2022	92,038	102,969
2022/ 2021	30,515	36,752
2021/ 2020	27,889	24,406
2020/ 2019	17,496	19,272
2019/ 2018	15,062	12,089
Prior Periods	14,498	21,127
Revolving	242,625	293,546
Total loan balance	440,123	510,161
Commercial. \| Commercial \| Special Mention [Member]
Loans
2023/ 2022	2,020	3,408
2022/ 2021	1,340	1,060
2021/ 2020	508	192
2020/ 2019		1,123
2019/ 2018	821
Prior Periods	8,525	6,031
Revolving	3,201	5,551
Total loan balance	16,415	17,365
Commercial. \| Commercial \| Substandard [Member]
Loans
2023/ 2022	4	4
2021/ 2020	571
2020/ 2019		145
2019/ 2018	166
Prior Periods	5,599	102
Revolving	2,170	5,496
Total loan balance	8,510	5,747
Commercial. \| Commercial \| Substandard-Nonaccrual [Member]
Loans
2022/ 2021		279
2021/ 2020	224
2019/ 2018	270	330
Prior Periods	421	33
Revolving	391
Total loan balance	1,306	642
Real estate \| CRE - Owner Occupied
Loans
2023/ 2022	18,474	92,689
2022/ 2021	88,358	118,959
2021/ 2020	118,667	75,874
2020/ 2019	74,753	61,007
2019/ 2018	59,975	58,373
Prior Periods	236,098	199,003
Revolving	11,706	8,758
Total loan balance	608,031	614,663
Real estate \| CRE - Owner Occupied \| Pass [Member]
Loans
2023/ 2022	17,849	92,689
2022/ 2021	86,777	116,266
2021/ 2020	118,396	75,007
2020/ 2019	73,915	59,887
2019/ 2018	58,862	58,180
Prior Periods	231,378	194,584
Revolving	11,706	8,758
Total loan balance	598,883	605,371
Real estate \| CRE - Owner Occupied \| Special Mention [Member]
Loans
2023/ 2022	625
2022/ 2021	1,581	2,033
2021/ 2020	271	867
2020/ 2019	838	1,120
Prior Periods	4,713	4,410
Total loan balance	8,028	8,430
Real estate \| CRE - Owner Occupied \| Substandard [Member]
Loans
2022/ 2021		660
2019/ 2018	1,113	193
Prior Periods	7	9
Total loan balance	1,120	862
Real estate \| CRE - Non-Owner Occupied
Loans
2023/ 2022	105,650	239,556
2022/ 2021	238,247	278,051
2021/ 2020	269,055	31,848
2020/ 2019	28,752	101,854
2019/ 2018	98,962	63,905
Prior Periods	404,368	347,909
Revolving	2,279	3,245
Total loan balance	1,147,313	1,066,368
Real estate \| CRE - Non-Owner Occupied \| Pass [Member]
Loans
2023/ 2022	105,650	239,556
2022/ 2021	238,247	278,051
2021/ 2020	269,055	31,848
2020/ 2019	28,752	101,854
2019/ 2018	98,962	63,905
Prior Periods	389,217	337,048
Revolving	2,055	3,245
Total loan balance	1,131,938	1,055,507
Real estate \| CRE - Non-Owner Occupied \| Special Mention [Member]
Loans
Prior Periods	7,435	4,883
Total loan balance	7,435	4,883
Real estate \| CRE - Non-Owner Occupied \| Substandard [Member]
Loans
Prior Periods	7,716	5,978
Revolving	224
Total loan balance	7,940	5,978
Real estate \| Land & Construction
Loans
2023/ 2022	19,804	62,241
2022/ 2021	73,869	72,847
2021/ 2020	48,112	22,459
2020/ 2019	14,896	6,030
2019/ 2018	6,135
Total loan balance	162,816	163,577
Real estate \| Land & Construction \| Pass [Member]
Loans
2023/ 2022	19,804	62,241
2022/ 2021	73,869	72,847
2021/ 2020	44,446	22,459
2020/ 2019	13,950	6,030
2019/ 2018	1,918
Total loan balance	153,987	163,577
Real estate \| Land & Construction \| Special Mention [Member]
Loans
2019/ 2018	4,217
Total loan balance	4,217
Real estate \| Land & Construction \| Substandard [Member]
Loans
2021/ 2020	3,666
2020/ 2019	946
Total loan balance	4,612
Real estate \| Home Equity
Loans
2022/ 2021		98
2021/ 2020	96
Prior Periods	126	188
Revolving	127,787	120,438
Total loan balance	128,009	120,724
Real estate \| Home Equity \| Pass [Member]
Loans
Prior Periods	126	44
Revolving	120,569	117,950
Total loan balance	120,695	117,994
Real estate \| Home Equity \| Special Mention [Member]
Loans
Revolving	4,640	2,346
Total loan balance	4,640	2,346
Real estate \| Home Equity \| Substandard [Member]
Loans
Prior Periods		144
Revolving	2,578	142
Total loan balance	2,578	286
Real estate \| Home Equity \| Substandard-Nonaccrual [Member]
Loans
2022/ 2021		98
2021/ 2020	96
Total loan balance	96	98
Real estate \| Multi-Family
Loans
2023/ 2022	18,274	42,111
2022/ 2021	41,686	69,824
2021/ 2020	56,697	5,528
2020/ 2019	5,457	43,183
2019/ 2018	42,659	15,356
Prior Periods	79,910	68,700
Revolving	276	180
Total loan balance	244,959	244,882
Real estate \| Multi-Family \| Pass [Member]
Loans
2023/ 2022	18,274	42,111
2022/ 2021	41,686	69,824
2021/ 2020	56,697	4,871
2020/ 2019	5,457	42,412
2019/ 2018	42,659	15,356
Prior Periods	77,645	66,380
Revolving	276	180
Total loan balance	242,694	241,134
Real estate \| Multi-Family \| Special Mention [Member]
Loans
2021/ 2020		657
2020/ 2019		771
Prior Periods		2,320
Total loan balance		3,748
Real estate \| Multi-Family \| Substandard [Member]
Loans
Prior Periods	2,265
Total loan balance	2,265
Real estate \| Residential Mortgage
Loans
2023/ 2022	1,195	191,907
2022/ 2021	186,559	296,270
2021/ 2020	285,879	1,068
2020/ 2019	1,053	7,846
2019/ 2018	7,718	4,206
Prior Periods	31,660	36,608
Total loan balance	514,064	537,905
Real estate \| Residential Mortgage \| Pass [Member]
Loans
2023/ 2022	1,195	191,907
2022/ 2021	184,686	296,270
2021/ 2020	285,879	1,068
2020/ 2019	1,053	6,788
2019/ 2018	6,672	2,724
Prior Periods	30,943	33,290
Total loan balance	510,428	532,047
Real estate \| Residential Mortgage \| Special Mention [Member]
Loans
2020/ 2019		1,058
2019/ 2018	1,046	1,482
Prior Periods	516	2,387
Total loan balance	1,562	4,927
Real estate \| Residential Mortgage \| Substandard [Member]
Loans
Prior Periods	201	931
Total loan balance	201	931
Real estate \| Residential Mortgage \| Substandard-Nonaccrual [Member]
Loans
2022/ 2021	1,873
Total loan balance	1,873
Consumer \| Consumer and Other
Loans
2023/ 2022		389
2022/ 2021	383	95
2021/ 2020	80
2020/ 2019		6
2019/ 2018		1,364
Prior Periods	2,109	1,283
Revolving	15,063	13,896
Total loan balance	17,635	17,033
Consumer \| Consumer and Other \| Pass [Member]
Loans
2023/ 2022		389
2022/ 2021	383	13
2021/ 2020	8
2019/ 2018		1,364
Prior Periods	2,109	1,283
Revolving	15,063	13,647
Total loan balance	17,563	16,696
Consumer \| Consumer and Other \| Special Mention [Member]
Loans
2022/ 2021		82
2021/ 2020	72
2020/ 2019		6
Revolving		249
Total loan balance	$ 72	$ 337

Loans and Allowance for Credi_9

Loans and Allowance for Credit Losses on Loans - Gross charge-offs by year of origination and revolving loans (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Current period gross charge-offs
12/31/2022	$ 4		$ 4
12/31/2019			49
2018 and Prior	20		105
Revolving Loans			246
Total	24	$ 355	404	$ 371
Commercial. \| Commercial
Current period gross charge-offs
12/31/2022	4		4
12/31/2019			49
2018 and Prior	20		105
Total	$ 24	$ 355	158	$ 371
Real estate \| Home Equity
Current period gross charge-offs
Revolving Loans			246
Total			$ 246

Loans and Allowance for Cred_10

Loans and Allowance for Credit Losses on Loans - Amortized Cost Basis of Collateral-dependent Loans (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Financing Receivable, Recorded Investment, Past Due [Line Items]
Unsecured loans	$ 45,000
Business Assets
Financing Receivable, Recorded Investment, Past Due [Line Items]
Collateral dependent loans	$ 1,087,000	$ 324,000

Loans and Allowance for Cred_11

Loans and Allowance for Credit Losses on Loans - Amortized cost basis of loans that were experiencing financial distress and modified (Details)	3 Months Ended	6 Months Ended
	Jun. 30, 2023 USD ($) loan	Jun. 30, 2023 USD ($) loan
Financing Receivable, Modifications [Line Items]
Number of loans for which multiple concessions are provided \| loan	1	1
Total Class of Financing Receivables	0.01%	0.04%
Amount committed to borrowers	$ 0	$ 0
Principal Forgiveness
Financing Receivable, Modifications [Line Items]
Total	3,000	6,000
Payment Delay
Financing Receivable, Modifications [Line Items]
Total	22,000	110,000
Term Extension
Financing Receivable, Modifications [Line Items]
Total		36,000
Combination Term Extension and Interest Rate Reduction
Financing Receivable, Modifications [Line Items]
Total	$ 28,000	$ 28,000
Commercial. \| Commercial
Financing Receivable, Modifications [Line Items]
Total Class of Financing Receivables	0.01%	0.04%
Commercial. \| Commercial \| Principal Forgiveness
Financing Receivable, Modifications [Line Items]
Total	$ 3,000	$ 6,000
Commercial. \| Commercial \| Payment Delay
Financing Receivable, Modifications [Line Items]
Total	22,000	110,000
Commercial. \| Commercial \| Term Extension
Financing Receivable, Modifications [Line Items]
Total		36,000
Commercial. \| Commercial \| Combination Term Extension and Interest Rate Reduction
Financing Receivable, Modifications [Line Items]
Total	$ 28,000	$ 28,000

Loans and Allowance for Cred_12

Loans and Allowance for Credit Losses on Loans - Performance of loans that have been modified (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2023
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total financing receivable modified	$ 50	$ 92
30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total financing receivable modified	22	22
60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total financing receivable modified		36
90 Days or Greater Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total financing receivable modified	28	34
Commercial. \| Commercial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total financing receivable modified	50	92
Commercial. \| Commercial \| 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total financing receivable modified	22	22
Commercial. \| Commercial \| 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total financing receivable modified		36
Commercial. \| Commercial \| 90 Days or Greater Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total financing receivable modified	$ 28	$ 34

Loans and Allowance for Cred_13

Loans and Allowance for Credit Losses on Loans - Financial effect of the loan modification (Details) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2023
Financing Receivable, Modifications [Line Items]
Weighted Average Interest Rate Reduction	0.25%
Weighted Average Term Extension (Months)	15 months	14 months
Payment default for loans modified	$ 0	$ 0
Principal Forgiveness [Member]
Financing Receivable, Modifications [Line Items]
Principal Forgiveness	$ 3,000	$ 6,000
Commercial. \| Commercial
Financing Receivable, Modifications [Line Items]
Weighted Average Interest Rate Reduction	0.25%
Weighted Average Term Extension (Months)	15 months	14 months
Commercial. \| Commercial \| Principal Forgiveness [Member]
Financing Receivable, Modifications [Line Items]
Principal Forgiveness	$ 3,000	$ 6,000

Goodwill and Other Intangible_3

Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Dec. 31, 2022	Jun. 30, 2022
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	Jun. 30, 2023	Dec. 31, 2022
Other Intangible Assets
Gross Carrying amount	$ 27,033	$ 27,033
Accumulated Amortization	(17,203)	(16,000)
Total	9,830	11,033
Core deposit intangibles
Other Intangible Assets
Gross Carrying amount	25,023	25,023
Accumulated Amortization	(15,538)	(14,429)
Total	9,485	10,594
Customer relationship and brokered relationship
Other Intangible Assets
Gross Carrying amount	1,900	1,900
Accumulated Amortization	(1,646)	(1,551)
Total	254	349
Below market leases
Other Intangible Assets
Gross Carrying amount	110	110
Accumulated Amortization	(19)	(20)
Total	$ 91	$ 90

Goodwill and Other Intangible_5

Goodwill and Other Intangible Assets - Estimated Amortization Expense (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Estimated Amortization Expense
2023 remaining	$ 1,202
2024	2,187
2025	1,813
2026	1,530
2027	1,456
2028	1,017
2029	625
Total	9,830	$ 11,033
Core deposit
Estimated Amortization Expense
2023 remaining	1,108
2024	2,023
2025	1,795
2026	1,512
2027	1,438
2028	999
2029	610
Total	9,485	10,594
Customer relationship and brokered relationship
Estimated Amortization Expense
2023 remaining	95
2024	159
Total	254	349
Below/ (Above) market-value lease
Estimated Amortization Expense
2023 remaining	(1)
2024	5
2025	18
2026	18
2027	18
2028	18
2029	15
Total	$ 91	$ 90

Goodwill and Other Intangible_6

Goodwill and Other Intangible Assets - Impairment of Intangible Assets (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
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	Jun. 30, 2023	Dec. 31, 2022
Net deferred tax assets
Net deferred tax assets	$ 31,588	$ 32,176
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	Jun. 30, 2023	Dec. 31, 2022
Income Taxes
Low income housing investments	$ 3,166	$ 3,537
Future commitments	$ 517	$ 523

Income Taxes - Future Commitmen

Income Taxes - Future Commitments of the Low Income Housing Investments (Details) - Low income housing investments	Jun. 30, 2023 USD ($)
Future Commitments
2023	$ 27,000
2024 through 2026	$ 490,000

Income Taxes - Components of Lo

Income Taxes - Components of Low Income Housing Investment (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Taxes
Low income housing tax credits	$ 180,000	$ 210,000	$ 360,000	$ 420,000
Low income housing investment expense	$ 186,000	$ 211,000	$ 371,000	$ 421,000

Benefit Plans - Defined Benefit

Benefit Plans - Defined Benefit Plans - Nonqualified Defined Benefit Pension Plan (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Supplemental Retirement Plan
Supplemental Retirement Plan
Plan assets associated with the plan	$ 0

Benefit Plans - Defined Benef_2

Benefit Plans - Defined Benefit Plans - Components of Pension Cost (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Supplemental Retirement Plan
Components of net periodic benefit cost:
Service cost	$ 48	$ 87	$ 96	$ 174
Interest cost	324	216	648	432
Amortization of net actuarial loss	13	114	26	228
Net periodic benefit cost	385	417	770	834
Split-Dollar Life Insurance Benefit Plan
Components of net periodic benefit cost:
Amortization of prior transition obligation and actuarial losses	(48)	(10)	(95)	(21)
Interest cost	91	61	182	123	$ 246
Net periodic benefit cost	$ 43	$ 51	$ 87	$ 102

Benefit Plans - Defined Benef_3

Benefit Plans - Defined Benefit Plans - Change in Projected Benefit Obligation (Details) - Split-Dollar Life Insurance Benefit Plan - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Change in projected benefit obligation:
Projected benefit obligation at beginning of year			$ 7,060	$ 9,244	$ 9,244
Interest cost	$ 91	$ 61	182	$ 123	246
Actuarial loss					(2,430)
Projected benefit obligation at end of period	$ 7,242		$ 7,242		$ 7,060

Benefit Plans - Defined Benef_4

Benefit Plans - Defined Benefit Plans - Amounts Recognized in Accumulated Other Comprehensive Loss (Details) - Split-Dollar Life Insurance Benefit Plan - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Amounts Recognized in Accumulated Other Comprehensive Loss
Net actuarial loss	$ 2,442	$ 2,301
Prior transition obligation	745	790
Accumulated other comprehensive loss	$ 3,187	$ 3,091

Fair Value - Financial Assets a

Fair Value - Financial Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	$ 486,058	$ 489,596
U.S. Treasury
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	421,146	418,474
Agency mortgage-backed securities
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	64,912	71,122
Significant Other Observable Inputs (Level 2) \| Agency mortgage-backed securities
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale		71,122
Recurring basis
Financial Assets and Liabilities Measured on a Recurring Basis
I/O strip receivables	139	152
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	421,146	418,474
Recurring basis \| Agency mortgage-backed securities
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	64,912
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	421,146	418,474
Recurring basis \| Significant Other Observable Inputs (Level 2)
Financial Assets and Liabilities Measured on a Recurring Basis
I/O strip receivables	139	$ 152
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	$ 64,912

Fair Value - Impaired Loans Hel

Fair Value - Impaired Loans Held-for-investment - Additional Disclosures (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
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 ($)	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021
Assets
Securities available-for-sale	$ 486,058,000		$ 489,596,000
Securities held-to-maturity	585,771,000		614,452,000
Federal Home Loan Bank ("FHLB"), Federal Reserve Bank ("FRB") stock and other investments, at cost	32,531,000		32,522,000
Liabilities
Subordinated debt	39,425,000		39,350,000
Allowance for credit losses on loans	47,803,000	$ 47,273,000	47,512,000	$ 45,490,000	$ 42,788,000	$ 43,290,000
Carrying Amounts
Assets
Cash and cash equivalents	511,502,000		306,603,000
Securities available-for-sale	486,058,000		489,596,000
Securities held-to-maturity	682,095,000		714,990,000
Loans (including loans held-for-sale)	3,291,920,000		3,301,006,000
Federal Home Loan Bank ("FHLB"), Federal Reserve Bank ("FRB") stock and other investments, at cost	32,531,000		32,522,000
Accrued interest receivable	14,592,000		15,047,000
I/O strips receivables	139,000		152,000
Liabilities
Time deposits	335,666,000		143,958,000
Other deposits	4,165,106,000		4,245,646,000
Subordinated debt	39,425,000		39,350,000
Accrued interest payable	2,308,000		600,000
Balance
Assets
Cash and cash equivalents	511,502,000		306,603,000
Securities available-for-sale	486,058,000		489,596,000
Securities held-to-maturity	585,771,000		614,452,000
Loans (including loans held-for-sale)	3,085,196,000		3,082,941,000
Accrued interest receivable	14,592,000		15,047,000
I/O strips receivables	139,000		152,000
Liabilities
Time deposits	339,196,000		144,702,000
Other deposits	4,165,106,000		4,245,646,000
Subordinated debt	31,425,000		36,025,000
Accrued interest payable	2,308,000		600,000
Balance \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets
Cash and cash equivalents	511,502,000		306,603,000
Securities available-for-sale	421,146,000		418,474,000
Accrued interest receivable	1,309,000		1,328,000
Balance \| Significant Other Observable Inputs (Level 2)
Assets
Securities available-for-sale	64,912,000		71,122,000
Securities held-to-maturity	585,771,000		614,452,000
Loans (including loans held-for-sale)	3,136,000		2,456,000
Accrued interest receivable	1,741,000		1,836,000
I/O strips receivables	139,000		152,000
Liabilities
Time deposits	339,196,000		144,702,000
Other deposits	4,165,106,000		4,245,646,000
Subordinated debt	31,425,000		36,025,000
Accrued interest payable	2,308,000		600,000
Balance \| Significant Unobservable Inputs (Level 3)
Assets
Loans (including loans held-for-sale)	3,082,060,000		3,080,485,000
Accrued interest receivable	$ 11,542,000		$ 11,883,000

Equity Plan - General Disclosur

Equity Plan - General Disclosures (Details) - shares	6 Months Ended
Equity Plan - General Disclosures (Details) - shares	Jun. 30, 2023	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	1,421,531
Employee Stock Option [Member]
Equity Plan
Vesting period	4 years
Expiration term	10 years
Stock options granted (in shares)	377,000
Restricted stock
Equity Plan
Stocks granted other than stock (or unit) option plans (in shares)	65,446
RSU
Equity Plan
Stocks granted other than stock (or unit) option plans (in shares)	119,362
RSU \| 2023 Plan
Equity Plan
Vesting period	3 years
PRSU
Equity Plan
Stocks granted other than stock (or unit) option plans (in shares)	119,358
PRSU \| 2023 Plan
Equity Plan
Performance period	3 years
Nonqualified stock options
Equity Plan
Stock options granted (in shares)	377,000

Equity Plan - Stock Option Acti

Equity Plan - Stock Option Activity (Details) - Employee Stock Option [Member] - USD ($)	6 Months Ended
	Jun. 30, 2023
Number of Shares
Outstanding at the beginning of the period (in shares)	2,527,173
Granted (in shares)	377,000
Exercised (in shares)	(172,986)
Forfeited or expired (in shares)	(53,694)
Outstanding at the end of the period (in shares)	2,677,493
Vested or expected to vest (in shares)	2,516,843
Exercisable at the end of the period (in shares)	1,833,258
Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share)	$ 10.44
Granted (in dollars per share)	7.41
Exercised (in dollars per share)	5.76
Forfeited or expired (in dollars per share)	10.59
Outstanding at the end of the period (in dollars per share)	$ 10.31
Additional Information
Weighted Average Remaining Contractual Life - Outstanding at the end of the period (in years)	5 years 11 months 19 days
Weighted Average Remaining Contractual Life - Vested or expected to vest (in years)	5 years 11 months 19 days
Weighted Average Remaining Contractual Life - Exercisable at the end of the period (in years)	4 years 6 months 25 days
Aggregate Intrinsic Value - Outstanding at the end of the period (in dollars)	$ 1,325,121
Aggregate Intrinsic Value - Vested or expected to vest (in dollars)	1,245,614
Aggregate Intrinsic Value - Exercisable at the end of the period (in dollars)	$ 1,004,071

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	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Information Related to the Equity Plans
Cash received from option exercise	$ 997	$ 849
Employee Stock Option [Member]
Information Related to the Equity Plans
Intrinsic value of options exercised	620,013	706,375
Cash received from option exercise	996,453	848,739
Tax benefit (expense) realized from option exercises	$ (5,902)	$ 52,952
Weighted average fair value of options granted (in dollars per share)	$ 1.32	$ 2.18

Equity Plan - Unrecognized Comp

Equity Plan - Unrecognized Compensation Cost -Nonvested Stock Options (Details)	6 Months Ended
	Jun. 30, 2023 USD ($)
Employee Stock Option [Member]
Unrecognized Compensation Cost
Total unrecognized compensation cost related to nonvested stock options granted	$ 1,477,000
Expected weighted-average period for recognition of compensation costs related to nonvested stock options	2 years 11 months 23 days
Restricted stock
Unrecognized Compensation Cost
Total unrecognized compensation cost related to nonvested stock options granted	$ 1,609,000
Expected weighted-average period for recognition of compensation costs related to nonvested stock options	1 year 5 months 8 days
Restricted Stock Units (RSUs)
Unrecognized Compensation Cost
Total unrecognized compensation cost related to nonvested stock options granted	$ 836,000
Expected weighted-average period for recognition of compensation costs related to nonvested stock options	2 years 10 months 2 days
PRSU
Unrecognized Compensation Cost
Total unrecognized compensation cost related to nonvested stock options granted	$ 836,000
Expected weighted-average period for recognition of compensation costs related to nonvested stock options	2 years 10 months 2 days

Equity Plan - Restricted Stock

Equity Plan - Restricted Stock Activity (Details)	6 Months Ended
Equity Plan - Restricted Stock Activity (Details)	Jun. 30, 2023 $ / shares shares
Nonqualified stock options
Number of Shares
Stock options granted (in shares)	377,000
Restricted stock
Number of Shares
Nonvested shares at the beginning of the period (in shares)	253,491
Stocks granted other than stock (or unit) option plans (in shares)	65,446
Vested (in shares)	(129,191)
Nonvested shares at the end of the period (in shares)	189,746
Weighted Average Grant Date Fair Value
Nonvested shares at the beginning of the period (in dollars per share) \| $ / shares	$ 11.05
Granted (in dollars per share) \| $ / shares	7.41
Vested (in dollars per share) \| $ / shares	7.71
Nonvested shares at the end of the period (in dollars per share) \| $ / shares	$ 10.88
Restricted Stock Units (RSUs)
Number of Shares
Stocks granted other than stock (or unit) option plans (in shares)	119,362
Nonvested shares at the end of the period (in shares)	119,362
Weighted Average Grant Date Fair Value
Granted (in dollars per share) \| $ / shares	$ 7.41
Nonvested shares at the end of the period (in dollars per share) \| $ / shares	$ 7.41
PRSU
Number of Shares
Stocks granted other than stock (or unit) option plans (in shares)	119,358
Nonvested shares at the end of the period (in shares)	119,358
Weighted Average Grant Date Fair Value
Granted (in dollars per share) \| $ / shares	$ 7.41
Nonvested shares at the end of the period (in dollars per share) \| $ / shares	$ 7.41

Borrowing Arrangements - Federa

Borrowing Arrangements - Federal Home Loan Bank Borrowings, Federal Reserve Bank Borrowings, and Available Lines of Credit (Details) - USD ($)	Apr. 20, 2023	Jun. 30, 2023	Dec. 31, 2022	Jun. 30, 2022
Borrowing Arrangements
Loan balance		$ 3,288,784,000	$ 3,298,550,000	$ 3,082,452,000
FHLB \| Line of credit
Borrowing Arrangements
Amount outstanding		0	0
Line of credit		1,266,522,000
Repayment of debt outstanding	$ 150,000,000
FHLB
Borrowing Arrangements
Securities pledged as collateral		375,480,000
Amount outstanding		0	$ 0
Repayment of debt outstanding	$ 150,000,000
FHLB \| Line of credit \| FHLB of San Francisco
Borrowing Arrangements
Loan balance		1,130,764,000
Line of credit		$ 1,087,564,000

Borrowing Arrangements - Fede_2

Borrowing Arrangements - Federal Reserve Bank Borrowings (Details)	Jun. 30, 2023 USD ($)
Line of credit \| FRB
Borrowing Arrangements
Loans and securities pledged to as collateral	$ 1,713,199,000

Borrowing Arrangements - Availa

Borrowing Arrangements - Available Lines of Credit (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Borrowing Arrangements
Federal funds purchased	$ 0	$ 0
Federal funds purchase arrangement
Borrowing Arrangements
Federal funds purchase arrangements available	$ 80,000,000

Borrowing Arrangements - Line o

Borrowing Arrangements - Line of Credit with a Corresponding Bank (Details) - Parent Company - Line of credit - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Borrowing Arrangements
Line of credit	$ 20,000	$ 20,000
Amount outstanding	$ 0	$ 0

Borrowing Arrangements - Securi

Borrowing Arrangements - Securities Sold under Repurchase Agreements (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022	Jun. 30, 2022
Borrowing Arrangements
Amount of securities sold under agreements	$ 0	$ 0	$ 0

Borrowing Arrangements - Subord

Borrowing Arrangements - Subordinated Debt (Details) - USD ($)	May 26, 2017	Jun. 30, 2023	Dec. 31, 2022	Jun. 01, 2022	May 11, 2022
Debt Instrument [Line Items]
Subordinated debt, net of issuance costs		$ 39,425,000	$ 39,350,000
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		39,425,000
Debt Issuance Costs		$ 575,000
Sub Debt Due 2027
Debt Instrument [Line Items]
Principal amount				$ 40,000,000	$ 40,000,000
Fixed interest rate (as a percent)					5.25%
Redemption price	100%

Capital Requirements - General

Capital Requirements - General Information (Details)		6 Months Ended	12 Months Ended
Capital Requirements - General Information (Details)	Mar. 27, 2020	Jun. 30, 2023	Dec. 31, 2022	Dec. 31, 2021
Capital Requirements
Period to delay the estimated impact of the adoption of the CECL Standard to regulatory capital as the company elected the option	2 years			2 years
Addition period for transition	3 years
Percentage of adjustment to regulatory capital deferred until phase in period of adoption of CECL Standard				25%
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	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
Total Capital (to risk-weighted assets)
Actual, Amount	$ 577,981	$ 554,810
Required For Capital Adequacy Purposes, Amount	$ 393,260	$ 393,461
Actual, Ratio (as a percent)	0.154	0.148
Required For Capital Adequacy Purposes, Ratio (as a percent)	0.105	0.105
Tier 1 Capital (to risk-weighted assets)
Actual, Amount	$ 495,624	$ 475,609
Required For Capital Adequacy Purposes, Amount	$ 318,353	$ 318,516
Actual, Ratio (as a percent)	0.132	0.127
Required For Capital Adequacy Purposes, Ratio (as a percent)	0.085	0.085
Common Equity Tier 1 Capital (to risk-weighted assets)
Actual, Amount	$ 495,624	$ 475,609
Required For Capital Adequacy Purposes, Amount	$ 262,173	$ 262,307
Actual, Ratio (as a percent)	0.132%	0.127%
Required For Capital Adequacy Purposes, Ratio (as a percent)	0.07%	0.07%
Tier 1 Capital (to average assets)
Actual, Amount	$ 495,624	$ 475,609
Required For Capital Adequacy Purposes, Amount	$ 204,424	$ 207,852
Actual, Ratio (as a percent)	0.097	0.092
Required For Capital Adequacy Purposes, Ratio (as a percent)	0.040	0.040
HBC
Total Capital (to risk-weighted assets)
Actual, Amount	$ 555,750	$ 532,576
To Be Well Capitalized Under Regulatory Requirements, Amount	374,769	374,572
Required For Capital Adequacy Purposes, Amount	$ 393,508	$ 393,301
Actual, Ratio (as a percent)	0.148	0.142
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	$ 512,818	$ 492,725
To Be Well Capitalized Under Regulatory Requirements, Amount	299,815	299,658
Required For Capital Adequacy Purposes, Amount	$ 318,554	$ 318,387
Actual, Ratio (as a percent)	0.137	0.132
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	$ 512,818	$ 492,725
To Be Well Capitalized Under Regulatory Requirements, Amount	243,600	243,472
Required For Capital Adequacy Purposes, Amount	$ 262,338	$ 262,201
Actual, Ratio (as a percent)	0.137%	0.132%
To Be Well Capitalized Under Regulatory Requirements, Ratio (as a percent)	0.065%	0.065%
Required For Capital Adequacy Purposes, Ratio (as a percent)	0.07%	0.07%
Tier 1 Capital (to average assets)
Actual, Amount	$ 512,818	$ 492,725
To Be Well Capitalized Under Regulatory Requirements, Amount	255,413	259,740
Required For Capital Adequacy Purposes, Amount	$ 204,330	$ 207,792
Actual, Ratio (as a percent)	0.100	0.095
To Be Well Capitalized Under Regulatory Requirements, Ratio (as a percent)	0.050	0.050
Required For Capital Adequacy Purposes, Ratio (as a percent)	0.040	0.040

Capital Requirements - Dividend

Capital Requirements - Dividends to Parent (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Cash dividend
Subordinated Debt.	$ 39,425,000		$ 39,425,000	$ 39,350,000
HBC
Cash dividend
Cash dividend available	50,085,000		50,085,000
Dividends paid to parent company	$ 8,000,000	$ 8,000,000	$ 16,000,000

Commitments and Loss Continge_3

Commitments and Loss Contingencies - Financial Instruments with Off-Balance Sheet Risk (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)	Dec. 12, 2022 item	Oct. 31, 2021 plaintiff item
Commitments and Contingencies
Number of counts not sustained by court without leave to amend \| item			2	2
Number of count on which court granted the Bank's motion for judgement \| item			1
Total number of plaintiffs \| plaintiff				26
Commitments to extend credit, fixed rate	$ 77,053,000	$ 88,913,000
Commitments to extend credit, variable rate	1,049,651,000	1,045,706,000
Commitment to extend credit, total	$ 1,126,704,000	$ 1,134,619,000
Percentage of unused commitments to outstanding gross loans	34%	34%
Increase (decrease) to the allowance for credit losses on loans	$ 37,000
Off-balance sheet, credit loss liability increase due to offsetting increase in loss factors in CECL model	783,000	$ 820,000
Unused lines of credit and commitments to make loans
Commitments and Contingencies
Commitments to extend credit, fixed rate	72,004,000	87,348,000
Commitments to extend credit, variable rate	1,040,297,000	1,036,847,000
Commitment to extend credit, total	1,112,301,000	1,124,195,000
Standby letters of credit
Commitments and Contingencies
Commitments to extend credit, fixed rate	5,049,000	1,565,000
Commitments to extend credit, variable rate	9,354,000	8,859,000
Commitment to extend credit, total	$ 14,403,000	$ 10,424,000

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Revenue Recognition (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Disaggregation of Revenue [Line Items]
Non-interest Income In-scope of Topic 606	$ 901	$ 867
Non-interest Income Out-of-scope of Topic 606	1,173	1,231	$ 2,196	$ 3,079
Total noninterest income	$ 2,074	$ 2,098	$ 4,840	$ 4,558
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
Service charges and fees on deposit accounts
Disaggregation of Revenue [Line Items]
Non-interest Income In-scope of Topic 606	$ 901	$ 867	$ 2,644	$ 1,479

Noninterest Expense (Details)

Noninterest Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Noninterest Expense (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Noninterest Expense
Salaries and employee benefits	$ 13,987	$ 13,476	$ 28,796	$ 27,297
Occupancy and equipment	2,422	2,277	4,822	4,714
Insurance expense	1,512	1,043	3,032	2,086
Professional fees	1,149	1,291	2,548	2,371
Data processing	913	681	1,687	1,332
Software subscriptions	631	462	1,221	874
Amortization of intangible assets	601	658	1,203	1,317
Other	3,776	3,302	7,083	6,451
Total noninterest expense	$ 24,991	$ 23,190	$ 50,392	$ 46,442

Leases (Details)

Leases (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Leases (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Leases
Lessee, Operating Lease, Option to renew			true
Operating Lease Cost (Cost resulting from lease payments)	$ 1,709	$ 1,620	$ 3,410	$ 3,240
Operating Lease - Operating Cash Flows (Fixed Payments)	1,703	1,235	3,348	2,445
Operating Lease - ROU assets	$ 33,267	$ 32,434	$ 33,267	$ 32,434
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	$ 33,267	$ 32,434	$ 33,267	$ 32,434
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 3 months 14 days	7 years 10 days	6 years 3 months 14 days	7 years 10 days
Weighted Average Discount Rate - Operating Leases	4.83%	4.50%	4.83%	4.50%

Leases - Maturity Analysis (Det

Leases - Maturity Analysis (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 30, 2022
Operating Lease Payments Due
2023 remaining	$ 3,334
2024	6,506
2025	5,979
2026	5,445
2027	5,288
Thereafter	12,268
Total undiscounted cash flows	38,820
Discount on cash flows	(5,553)
Total lease liability	$ 33,267	$ 32,434

Business Segment Information -

Business Segment Information - Business Segments (Details)	6 Months Ended
Business Segment Information - Business Segments (Details)	Jun. 30, 2023 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				6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Operating Income
Interest income	$ 58,341		$ 43,556		$ 114,615	$ 83,462
Total interest expense	12,048		1,677		19,064	3,362
Net interest income	46,293		41,879		95,551	80,100
Provision for (recapture of) credit losses on loans	260		(181)		292	(748)
Net interest income after provision	46,033		42,060		95,259	80,848
Noninterest income	2,074		2,098		4,840	4,558
Noninterest expense	24,991		23,190		50,392	46,442
Income before income taxes	23,116		20,968		49,707	38,964
Income tax expense	6,713		6,147		14,387	11,277
Net income	16,403	$ 18,917	14,821	$ 12,866	35,320	27,687
Total assets	5,311,837		5,356,841		5,311,837	5,356,841	$ 5,157,580
Loan balance	3,288,784		3,082,452		3,288,784	3,082,452	3,298,550
Goodwill	167,631		167,631		167,631	167,631	167,631
Banking
Operating Income
Interest income	54,494		40,427		106,767	77,540
Intersegment interest allocations	524		321		1,229	558
Total interest expense	12,048		1,677		19,064	3,362
Net interest income	42,970		39,071		88,932	74,736
Provision for (recapture of) credit losses on loans	409		(328)		553	(867)
Net interest income after provision	42,561		39,399		88,379	75,603
Noninterest income	2,017		1,974		4,699	4,372
Noninterest expense	23,329		21,559		47,057	43,326
Intersegment expense allocations	152		128		326	242
Income before income taxes	21,401		19,942		46,347	36,891
Income tax expense	6,206		5,844		13,394	10,664
Net income	15,195		14,098		32,953	26,227
Total assets	5,227,310		5,280,953		5,227,310	5,280,953
Loan balance	3,227,905		3,019,076		3,227,905	3,019,076
Goodwill	154,587		154,587		154,587	154,587	154,587
Factoring
Operating Income
Interest income	3,847		3,129		7,848	5,922
Intersegment interest allocations	(524)		(321)		(1,229)	(558)
Net interest income	3,323		2,808		6,619	5,364
Provision for (recapture of) credit losses on loans	(149)		147		(261)	119
Net interest income after provision	3,472		2,661		6,880	5,245
Noninterest income	57		124		141	186
Noninterest expense	1,662		1,631		3,335	3,116
Intersegment expense allocations	(152)		(128)		(326)	(242)
Income before income taxes	1,715		1,026		3,360	2,073
Income tax expense	507		303		993	613
Net income	1,208		723		2,367	1,460
Total assets	84,527		75,888		84,527	75,888
Loan balance	60,879		63,376		60,879	63,376
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	Jul. 27, 2023	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022
Subsequent Event [Line Items]
Quarterly cash dividends declared to holders of common stock		$ 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

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Pay vs Performance Disclosure
Net Income (Loss)	$ 16,403	$ 18,917	$ 14,821	$ 12,866	$ 35,320	$ 27,687

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Jun. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false