Heritage Commerce (HTBK) 10-Q3 Nov 232023 Q3 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2023	Oct. 30, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 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		61,099,155
Entity Central Index Key	0001053352
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Assets
Cash and due from banks	$ 40,076,000	$ 27,595,000
Other investments and interest-bearing deposits in other financial institutions	605,476,000	279,008,000
Total cash and cash equivalents	645,552,000	306,603,000
Securities available-for-sale, at fair value	457,194,000	489,596,000
Securities held-to-maturity, at amortized cost, net of allowance for credit losses of $13 at September 30, 2023 and $14 at December 31, 2022 (fair value of $542,009 at September 30, 2023 and $614,452 at December 31, 2022)	664,681,000	714,990,000
Loans held-for-sale - SBA, at lower of cost or fair value, including deferred costs	841,000	2,456,000
Loans, net of deferred fees	3,285,461,000	3,298,550,000
Allowance for credit losses on loans	(47,702,000)	(47,512,000)
Loans, net	3,237,759,000	3,251,038,000
Federal Home Loan Bank ("FHLB"), Federal Reserve Bank ("FRB") stock and other investments, at cost	32,535,000	32,522,000
Company-owned life insurance	79,607,000	78,945,000
Premises and equipment, net	9,707,000	9,301,000
Goodwill	167,631,000	167,631,000
Other intangible assets	9,229,000	11,033,000
Accrued interest receivable and other assets	98,571,000	93,465,000
Total assets	5,403,307,000	5,157,580,000
Deposits:
Demand, noninterest-bearing	1,243,501,000	1,736,722,000
Demand, interest-bearing	1,004,185,000	1,196,427,000
Savings and money market	1,110,640,000	1,285,444,000
Time deposits - under $250	43,906,000	32,445,000
Time deposits - $250 and over	252,001,000	108,192,000
ICS/CDARS - interest-bearing demand, money market and time deposits	921,224,000	30,374,000
Total deposits	4,575,457,000	4,389,604,000
Subordinated debt, net of issuance costs	39,463,000	39,350,000
Accrued interest payable and other liabilities	126,457,000	96,170,000
Total liabilities	4,741,377,000	4,525,124,000
Shareholders' equity:
Preferred stock, no par value; 10,000,000 shares authorized; none issued and outstanding at September 30, 2023 and December 31, 2022
Common stock, no par value; 100,000,000 shares authorized; 61,099,155 shares issued and outstanding at September 30, 2023 and 60,852,723 shares issued and outstanding at December 31, 2022	505,692,000	502,923,000
Retained earnings	173,707,000	146,389,000
Accumulated other comprehensive loss	(17,469,000)	(16,856,000)
Total shareholders' equity	661,930,000	632,456,000
Total liabilities and shareholders' equity	$ 5,403,307,000	$ 5,157,580,000

CONSOLIDATED BALANCE SHEETS (_2

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Securities held-to-maturity
Allowance for credit loss current period	$ 13,000	$ 14,000
Securities held-to-maturity	$ 542,009,000	$ 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	61,099,155	60,852,723
Common stock, shares outstanding	61,099,155	60,852,723

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Interest income:
Loans, including fees	$ 44,853	$ 38,870	$ 132,993	$ 110,509
Securities, taxable	6,797	5,874	20,835	13,725
Securities, exempt from Federal tax	232	260	718	828
Other investments, interest-bearing deposits in other financial institutions and Federal funds sold	8,909	5,170	20,860	8,574
Total interest income	60,791	50,174	175,406	133,636
Interest expense:
Deposits	14,880	1,595	31,504	3,855
Short-term borrowings			1,365
Subordinated debt	539	538	1,614	1,640
Total interest expense	15,419	2,133	34,483	5,495
Net interest income before provision for credit losses on loans	45,372	48,041	140,923	128,141
Provision for credit losses on loans	168	1,006	460	258
Net interest income after provision for credit losses on loans	45,204	47,035	140,463	127,883
Noninterest income:
Service charges and fees on deposit accounts	$ 859	$ 1,360	$ 3,503	$ 2,839
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	$ 517	$ 484	$ 1,512	$ 1,444
Gain on sales of SBA loans	207	308	482	491
Termination fees	118	16	129	61
Gain on proceeds from company owned life insurance	100		100	27
Servicing income	62	125	297	370
Gain on warrants		32		669
Other	353	456	1,033	1,438
Total noninterest income	2,216	2,781	7,056	7,339
Noninterest expense:
Salaries and employee benefits	14,147	14,119	42,943	41,416
Occupancy and equipment	2,301	2,415	7,123	7,129
Professional fees	717	1,230	3,265	3,601
Other	8,006	6,135	22,232	18,195
Total noninterest expense	25,171	23,899	75,563	70,341
Income before income taxes	22,249	25,917	71,956	64,881
Income tax expense	6,454	7,848	20,841	19,125
Net income	$ 15,795	$ 18,069	$ 51,115	$ 45,756
Earnings per common share:
Basic (in dollars per share)	$ 0.26	$ 0.30	$ 0.84	$ 0.76
Diluted (in dollars per share)	$ 0.26	$ 0.30	$ 0.83	$ 0.75

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)
Net income	$ 15,795	$ 18,069	$ 51,115	$ 45,756
Other comprehensive income (loss):
Change in net unrealized holding gains (losses) on available-for-sale securities and I/O strips	(243)	(13,188)	(701)	(20,317)
Deferred income taxes	70	3,824	203	5,891
Change in unrealized gains (losses) on securities and I/O strips, net of deferred income taxes	(173)	(9,364)	(498)	(14,426)
Change in net pension and other benefit plan liability adjustment	(35)	104	(104)	311
Deferred income taxes	(3)	(34)	(11)	(101)
Change in pension and other benefit plan liability, net of deferred income taxes	(38)	70	(115)	210
Other comprehensive income (loss)	(211)	(9,294)	(613)	(14,216)
Total comprehensive income	$ 15,584	$ 8,775	$ 50,502	$ 31,540

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - 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 income (loss)			(3,058)	(3,058)
Amortization of restricted stock awards, net of forfeitures and taxes	$ 518			518
Cash dividend declared		(7,848)		(7,848)
Stock option expense, net of forfeitures and taxes	149			149
Stock options exercised	$ 401			401
Stock options exercised (in shares)	68,009
Balance at Mar. 31, 2022	$ 498,763	116,347	(14,054)	601,056
Balance (in shares) at Mar. 31, 2022	60,407,846
Balance at Dec. 31, 2021	$ 497,695	111,329	(10,996)	598,028
Balance (in shares) at Dec. 31, 2021	60,339,837
Increase (Decrease) in Shareholders' Equity
Net income				45,756
Other comprehensive income (loss)			(14,216)	(14,216)
Balance at Sep. 30, 2022	$ 501,240	133,489	(25,212)	609,517
Balance (in shares) at Sep. 30, 2022	60,716,794
Balance at Mar. 31, 2022	$ 498,763	116,347	(14,054)	601,056
Balance (in shares) at Mar. 31, 2022	60,407,846
Increase (Decrease) in Shareholders' Equity
Net income		14,821		14,821
Other comprehensive income (loss)			(1,864)	(1,864)
Issuance (forfeitures) of restricted stock awards, net (in shares)	189,305
Amortization of restricted stock awards, net of forfeitures and taxes	$ 477			477
Cash dividend declared		(7,858)		(7,858)
Stock option expense, net of forfeitures and taxes	144			144
Stock options exercised	$ 448			448
Stock options exercised (in shares)	69,643
Balance at Jun. 30, 2022	$ 499,832	123,310	(15,918)	607,224
Balance (in shares) at Jun. 30, 2022	60,666,794
Increase (Decrease) in Shareholders' Equity
Net income		18,069		18,069
Other comprehensive income (loss)			(9,294)	(9,294)
Issuance (forfeitures) of restricted stock awards, net (in shares)	37,000
Amortization of restricted stock awards, net of forfeitures and taxes	$ 1,234			1,234
Cash dividend declared		(7,890)		(7,890)
Stock option expense, net of forfeitures and taxes	153			153
Stock options exercised	$ 21			21
Stock options exercised (in shares)	13,000
Balance at Sep. 30, 2022	$ 501,240	133,489	(25,212)	609,517
Balance (in shares) at Sep. 30, 2022	60,716,794
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 income (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				51,115
Other comprehensive income (loss)			(613)	(613)
Balance at Sep. 30, 2023	$ 505,692	173,707	(17,469)	661,930
Balance (in shares) at Sep. 30, 2023	61,099,155
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 income (loss)			(2,941)	(2,941)
Issuance (forfeitures) of restricted stock awards, net (in shares)	65,446
Forfeiture of restricted stock awards, net
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
Increase (Decrease) in Shareholders' Equity
Net income		15,795		15,795
Other comprehensive income (loss)			(211)	(211)
Issuance (forfeitures) of restricted stock awards, net (in shares)	8,000
Amortization of restricted stock awards, net of forfeitures and taxes	$ 321			321
Cash dividend declared		(7,941)		(7,941)
Restricted stock units ("RSUs") and performance-based restricted stock units ("PRSUs") expense, net of taxes	148			148
Stock option expense, net of forfeitures and taxes	148			148
Balance at Sep. 30, 2023	$ 505,692	$ 173,707	$ (17,469)	$ 661,930
Balance (in shares) at Sep. 30, 2023	61,099,155

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares	3 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	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	$ 0.13	$ 0.13

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 51,115	$ 45,756
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of premiums and accretion of discounts on securities	(3,746)	290
Gain on sale of SBA loans	(482)	(491)
Proceeds from sale of SBA loans originated for sale	8,035	7,689
SBA loans originated for sale	(5,938)	(7,392)
Provision for credit losses on loans	460	258
Increase in cash surrender value of life insurance	(1,512)	(1,444)
Depreciation and amortization	828	850
Amortization of other intangible assets	1,804	1,976
Stock option expense, net	449	446
RSUs and PRSUs expense	244
Amortization of restricted stock awards, net	1,079	2,229
Amortization of subordinated debt issuance costs	113	134
Gain on proceeds from company-owned life insurance	(100)	(27)
Effect of changes in:
Accrued interest receivable and other assets	(4,400)	(3,225)
Accrued interest payable and other liabilities	29,642	(4,337)
Net cash provided by operating activities	77,591	42,712
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of securities available-for-sale		(414,025)
Purchase of securities held-to-maturity		(119,447)
Maturities/paydowns/calls of securities available-for-sale	36,283	18,442
Maturities/paydowns/calls of securities held-to-maturity	49,500	72,794
Purchase of mortgage loans		(148,014)
Net change in loans	12,819	22,720
Changes in FHLB stock and other investments	(13)	(13)
Proceeds from redemption of company-owned life insurance	950	604
Purchase of premises and equipment	(1,234)	(639)
Net cash provided by (used in) investing activities	98,305	(567,578)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net change in deposits	185,853	(76,147)
Exercise of stock options	997	870
Payment of cash dividends	(23,797)	(23,596)
Redemption of subordinated debt		(40,000)
Issuance of subordinated debt, net of issuance costs		39,274
Net cash provided by (used in) financing activities	163,053	(99,599)
Net increase (decrease) in cash and cash equivalents	338,949	(624,465)
Cash and cash equivalents, beginning of period	306,603	1,306,216
Cash and cash equivalents, end of period	645,552	681,751
Supplemental disclosures of cash flow information:
Interest paid	29,887	4,878
Income taxes paid, net	79	19,171
Supplemental schedule of non-cash activity:
Recording of right of use assets in exchange for lease obligations	$ 541	1,751
Transfer of loans held-for-sale to loan portfolio		$ 480

Basis of Presentation

Basis of Presentation	9 Months Ended
Basis of Presentation	Sep. 30, 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 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 nine months ended September 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	9 Months Ended
Earnings Per Share	Sep. 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 nine months ended September 30, 2023, respectively, considered to be antidilutive and excluded from the computation of diluted earnings per share. There were Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (Dollars in thousands, except per share amounts) Net income $ 15,795 $ 18,069 $ 51,115 $ 45,756 Weighted average common shares outstanding for basic earnings per common share 61,093,289 60,686,992 61,012,315 60,541,015 Dilutive potential common shares 342,951 436,809 272,275 463,825 Shares used in computing diluted earnings per common share 61,436,240 61,123,801 61,284,590 61,004,840 Basic earnings per share $ 0.26 $ 0.30 $ 0.84 $ 0.76 Diluted earnings per share $ 0.26 $ 0.30 $ 0.83 $ 0.75

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss) (AOCI)	9 Months Ended
Accumulated Other Comprehensive Income (Loss) (AOCI)	Sep. 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 September 30, 2023 and 2022 Unrealized Losses on Available- Defined for-Sale Benefit Securities Pension and I/O Plan Strips Items(1) Total (Dollars in thousands) Beginning balance July 1, 2023, net of taxes $ (11,719) $ (5,539) $ (17,258) Other comprehensive income (loss) before reclassification, net of taxes (173) (13) (186) Amounts reclassified from other comprehensive income (loss), net of taxes — (25) (25) Net current period other comprehensive income (loss), net of taxes (173) (38) (211) Ending balance September 30, 2023, net of taxes $ (11,892) $ (5,577) $ (17,469) Beginning balance July 1, 2022, net of taxes $ (2,909) $ (13,009) $ (15,918) Other comprehensive income (loss) before reclassification, net of taxes (9,364) (3) (9,367) Amounts reclassified from other comprehensive income (loss), net of taxes — 73 73 Net current period other comprehensive income (loss), net of taxes (9,364) 70 (9,294) Ending balance September 30, 2022, net of taxes $ (12,273) $ (12,939) $ (25,212) Nine Months Ended September 30, 2023 and 2022 Unrealized 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 (498) (41) (539) Amounts reclassified from other comprehensive income (loss), net of taxes — (74) (74) Net current period other comprehensive income (loss), net of taxes (498) (115) (613) Ending balance September 30, 2023, net of taxes $ (11,892) $ (5,577) $ (17,469) Beginning balance January 1, 2022, net of taxes $ 2,153 $ (13,149) $ (10,996) Other comprehensive income (loss) before reclassification, net of taxes (14,426) (9) (14,435) Amounts reclassified from other comprehensive income (loss), net of taxes — 219 219 Net current period other comprehensive income (loss), net of taxes (14,426) 210 (14,216) Ending balance September 30, 2022, net of taxes $ (12,273) $ (12,939) $ (25,212) (1) This AOCI component is included in the computation of net periodic benefit cost (see Note 8—Benefit Plans) and includes split-dollar life insurance benefit plan. Amounts Reclassified from AOCI Three Months Ended September 30, Affected Line Item Where Details About AOCI Components 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 Nine Months Ended September 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) $ 143 $ 31 Prior service cost and actuarial losses (3) (39) (342) 104 (311) Other noninterest expense (30) 92 Income tax benefit 74 (219) Net of tax Total reclassification from AOCI for the period $ 74 $ (219) (1) This AOCI component is included in the computation of net periodic benefit cost (see Note 8—Benefit Plans). (2) This is related to the split dollar life insurance benefit plan. (3) This is related to the supplemental executive retirement plan.

Securities

Securities	9 Months Ended
Securities	Sep. 30, 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 September 30, 2023 Cost Gains (Losses) Losses Value (Dollars in thousands) Securities available-for-sale: U.S. Treasury $ 406,602 $ — $ (9,606) $ — $ 396,996 Agency mortgage-backed securities 67,383 — (7,185) — 60,198 Total $ 473,985 $ — $ (16,791) $ — $ 457,194 Gross Gross Estimated Allowance Amortized Unrecognized Unrecognized Fair for Credit September 30, 2023 Cost Gains (Losses) Value Losses (Dollars in thousands) Securities held-to-maturity: Agency mortgage-backed securities $ 632,241 $ — $ (119,932) $ 512,309 $ — Municipals - exempt from Federal tax 32,453 — (2,753) 29,700 (13) Total $ 664,694 $ — $ (122,685) $ 542,009 $ (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 September 30, 2023 Value (Losses) Value (Losses) Value (Losses) (Dollars in thousands) Securities available-for-sale: U.S. Treasury $ 4,853 $ (108) $ 392,143 $ (9,498) $ 396,996 $ (9,606) Agency mortgage-backed securities — — 60,198 (7,185) 60,198 (7,185) Total $ 4,853 $ (108) $ 452,341 $ (16,683) $ 457,194 $ (16,791) Securities held-to-maturity: Agency mortgage-backed securities $ 24,959 $ (1,167) $ 487,350 $ (118,765) $ 512,309 $ (119,932) Municipals — exempt from Federal tax 16,723 (1,264) 12,977 (1,489) 29,700 (2,753) Total $ 41,682 $ (2,431) $ 500,327 $ (120,254) $ 542,009 $ (122,685) 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 September 30, 2023, the Company held The amortized cost and estimated fair values of securities as of September 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 three months or less $ 15,963 $ 15,947 Due after three months through one year 208,050 204,833 Due after one through five years 182,589 176,216 Agency mortgage-backed securities 67,383 60,198 Total $ 473,985 $ 457,194 Held-to-maturity Amortized Estimated Cost (1) Fair Value (Dollars in thousands) Due after three months through one year $ 1,065 $ 1,055 Due after one through five years 6,459 6,164 Due after five through ten years 24,353 21,946 Due after ten years 576 535 Agency mortgage-backed securities 632,241 512,309 Total $ 664,694 $ 542,009 (1) Gross of the allowance for credit losses of $13,000 at September 30, 2023. Securities with amortized cost of $1,055,583,000 and $66,272,000 as of September 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 September 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 nine months ended September 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 Recapture of credit losses (1) Ending balance September 30, 2023 $ 13 For the nine months ended September 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 September 30, 2023 were consistent with the ratings at December 31, 2022.

Loans and Allowance for Credit

Loans and Allowance for Credit Losses on Loans	9 Months Ended
Loans and Allowance for Credit Losses on Loans	Sep. 30, 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 the 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 $473,000 of Small Business Administration (“SBA”) Paycheck Protection Program loans and $52,082,000 of Bay View Funding factored receivables at September 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 occupied 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 term loans and are acquired. Consumer and Other Consumer and other loans are secured by personal property or are unsecured and rely primarily on the income of the borrower for repayment and secondarily on the collateral value for secured loans. Borrower income and collateral values can vary depending on economic conditions. Loan Distribution Loans by portfolio segment and the allowance for credit losses on loans were as follows for the periods indicated: September 30, December 31, 2023 2022 (Dollars in thousands) Loans held-for-investment: Commercial $ 430,664 $ 533,915 Real estate: CRE - owner occupied 589,751 614,663 CRE - non-owner occupied 1,208,324 1,066,368 Land and construction 158,138 163,577 Home equity 124,477 120,724 Multifamily 253,129 244,882 Residential mortgages 503,006 537,905 Consumer and other 18,526 17,033 Loans 3,286,015 3,299,067 Deferred loan fees, net (554) (517) Loans, net of deferred fees 3,285,461 3,298,550 Allowance for credit losses on loans (47,702) (47,512) Loans, net $ 3,237,759 $ 3,251,038 Changes in the allowance for credit losses on loans were as follows for the periods indicated: Three Months Ended September 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 $ 6,550 $ 5,463 $ 23,523 $ 2,870 $ 730 $ 4,383 $ 4,129 $ 155 $ 47,803 Charge-offs (447) — — — — — — — (447) Recoveries 59 2 — — 117 — — — 178 Net (charge-offs) recoveries (388) 2 — — 117 — — — (269) Provision for (recapture of) credit losses on loans (557) (120) 1,396 (126) (140) 331 (635) 19 168 End of period balance $ 5,605 $ 5,345 $ 24,919 $ 2,744 $ 707 $ 4,714 $ 3,494 $ 174 $ 47,702 Three Months Ended September 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 $ 6,602 $ 6,009 $ 21,474 $ 2,498 $ 695 $ 2,824 $ 5,232 $ 156 $ 45,490 Charge-offs (7) — — — — — — — (7) Recoveries 202 4 — — 26 — — 200 432 Net recoveries 195 4 — — 26 — — 200 425 Provision for (recapture of) credit losses on loans 302 (96) (416) (7) (36) 406 1,077 (224) 1,006 End of period balance $ 7,099 $ 5,917 $ 21,058 $ 2,491 $ 685 $ 3,230 $ 6,309 $ 132 $ 46,921 Nine Months Ended September 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 (605) — — — (246) — — — (851) Recoveries 247 10 — — 324 — — — 581 Net (charge-offs) recoveries (358) 10 — — 78 — — — (270) Provision for (recapture of) credit losses on loans (654) (416) 2,784 (197) (37) 1,348 (2,413) 45 460 End of period balance $ 5,605 $ 5,345 $ 24,919 $ 2,744 $ 707 $ 4,714 $ 3,494 $ 174 $ 47,702 Nine Months Ended September 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 (378) — — — — — — — (378) Recoveries 335 11 — — 81 — — 3,324 3,751 Net (charge-offs) recoveries (43) 11 — — 81 — — 3,324 3,373 Provision for (recapture of) credit losses on loans (1,272) (2,048) 3,933 660 (260) 434 2,177 (3,366) 258 End of period balance $ 7,099 $ 5,917 $ 21,058 $ 2,491 $ 685 $ 3,230 $ 6,309 $ 132 $ 46,921 The following tables present the amortized cost basis of nonperforming loans and loans past due over 90 days and still accruing at the periods indicated: September 30, 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 $ 1,269 $ 443 $ 1,966 $ 3,678 Real estate: CRE - Owner Occupied — — — — CRE - Non-Owner Occupied — — — — Home equity 90 — — 90 Residential mortgages 1,716 — — 1,716 Total $ 3,075 $ 443 $ 1,966 $ 5,484 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: September 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 $ 4,621 $ 1,298 $ 3,382 $ 9,301 $ 421,363 $ 430,664 Real estate: CRE - Owner Occupied — 809 — 809 588,942 589,751 CRE - Non-Owner Occupied — — — — 1,208,324 1,208,324 Land and construction — — — — 158,138 158,138 Home equity — 90 90 124,387 124,477 Multifamily — — — — 253,129 253,129 Residential mortgages — — 1,716 1,716 501,290 503,006 Consumer and other 15 — — 15 18,511 18,526 Total $ 4,636 $ 2,107 $ 5,188 $ 11,931 $ 3,274,084 $ 3,286,015 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 $11,931,000 and $17,066,000 at September 30, 2023 and December 31, 2022, respectively, of which $2,522,000 and $479,000 were on nonaccrual, respectively. At September 30, 2023, there were also $996,000 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 September 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 September 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 September 30, 2023 Loans 2018 and Amortized 9/30/2023 12/31/2022 12/31/2021 12/31/2020 12/31/2019 Prior Cost Basis Total (Dollars in thousands) Commercial: Pass $ 88,304 $ 26,356 $ 22,309 $ 16,302 $ 13,713 $ 23,489 $ 219,252 $ 409,725 Special Mention 2,020 2,657 492 — 425 1,139 6,015 12,748 Substandard 231 876 521 — 307 3,795 749 6,479 Substandard-Nonaccrual — — 223 — 283 506 700 1,712 Total 90,555 29,889 23,545 16,302 14,728 28,929 226,716 430,664 CRE - Owner Occupied: Pass 25,554 86,171 114,303 69,100 53,704 218,884 10,643 578,359 Special Mention — 1,574 3,263 467 — 4,975 — 10,279 Substandard — — — — 1,107 6 — 1,113 Substandard-Nonaccrual — — — — — — — — Total 25,554 87,745 117,566 69,567 54,811 223,865 10,643 589,751 CRE - Non-Owner Occupied: Pass 176,351 237,904 267,063 28,534 102,839 376,429 2,355 1,191,475 Special Mention — — — — — 8,959 — 8,959 Substandard — — — — — 7,666 224 7,890 Substandard-Nonaccrual — — — — — — — — Total 176,351 237,904 267,063 28,534 102,839 393,054 2,579 1,208,324 Land and construction: Pass 39,051 62,958 33,165 12,184 1,884 — — 149,242 Special Mention — — — — 4,235 — — 4,235 Substandard — — 3,706 955 — — — 4,661 Substandard-Nonaccrual — — — — — — — — Total 39,051 62,958 36,871 13,139 6,119 — — 158,138 Home equity: Pass — — — — — 933 117,621 118,554 Special Mention — — — — — — 2,295 2,295 Substandard — — — — — — 3,538 3,538 Substandard-Nonaccrual — — — — — — 90 90 Total — — — — — 933 123,544 124,477 Multifamily: Pass 28,725 41,477 56,134 5,426 42,397 76,408 325 250,892 Special Mention — — — — — — — — Substandard — — — — — 2,237 — 2,237 Substandard-Nonaccrual — — — — — — — — Total 28,725 41,477 56,134 5,426 42,397 78,645 325 253,129 Residential mortgage: Pass 1,191 178,799 279,895 1,045 7,661 29,730 — 498,321 Special Mention — 1,343 — — — — — 1,343 Substandard — 1,430 — — — 196 — 1,626 Substandard-Nonaccrual — 1,716 — — — — — 1,716 Total 1,191 183,288 279,895 1,045 7,661 29,926 — 503,006 Consumer and other: Pass — 1,380 6 — — 2,081 14,992 18,459 Special Mention — — 67 — — — — 67 Substandard — — — — — — — — Substandard-Nonaccrual — — — — — — — — Total — 1,380 73 — — 2,081 14,992 18,526 Total loans $ 361,427 $ 644,641 $ 781,147 $ 134,013 $ 228,555 $ 757,433 $ 378,799 $ 3,286,015 Risk Grades: Pass $ 359,176 $ 635,045 $ 772,875 $ 132,591 $ 222,198 $ 727,954 $ 365,188 $ 3,215,027 Special Mention 2,020 5,574 3,822 467 4,660 15,073 8,310 39,926 Substandard 231 2,306 4,227 955 1,414 13,900 4,511 27,544 Substandard-Nonaccrual — 1,716 223 — 283 506 790 3,518 Grand Total $ 361,427 $ 644,641 $ 781,147 $ 134,013 $ 228,555 $ 757,433 $ 378,799 $ 3,286,015 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 nine months ended September 30, 2023: Gross Charge-offs by Originated Period for the Three Months Ended September 30, 2023 2018 and Revolving 09/30/2023 12/31/2022 12/31/2021 12/31/2020 12/31/2019 Prior Loans Total (Dollars in thousands) Commercial $ 1 $ 45 $ — $ — $ 229 $ 172 $ — $ 447 Real estate: CRE - Owner Occupied — — — — — — — — CRE - Non-Owner Occupied — — — — — — — — Land and construction — — — — — — — — Home equity — — — — — — — — Multifamily — — — — — — — — Residential mortgages — — — — — — — — Consumer and other — — — — — — — — Total $ 1 $ 45 $ — $ — $ 229 $ 172 $ — $ 447 Gross Charge-offs by Originated Period for the Nine Months Ended September 30, 2023 2018 and Revolving 09/30/2023 12/31/2022 12/31/2021 12/31/2020 12/31/2019 Prior Loans Total (Dollars in thousands) Commercial $ 1 $ 49 $ — $ — $ 278 $ 277 $ — $ 605 Real estate: CRE - Owner Occupied — — — — — — —

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	9 Months Ended
Goodwill and Other Intangible Assets	Sep. 30, 2023
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets	6) Goodwill and Other Intangible Assets Goodwill At September 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’s 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. In the second quarter of 2023, Management determined that a triggering event had occurred as a result of the economic uncertainty and market volatility resulting from the rising interest rate environment and the recent three regional bank failures that resulted in an industry wide 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. The Company performed a qualitative assessment as of June 30, 2023 and determined that there was no impairment as the fair value exceeded the carrying amount of the Company. The Company continued to monitor events and circumstances in the third quarter of 2023 and determined that, in the absence of deterioration of performance during the quarter and based on the stability of conditions subsequent to the impairment testing performed in the second quarter of 2023, it was more likely than not that its fair value was greater than its carrying value as of September 30, 2023. The following table summarizes the carrying amount of goodwill by segment for the periods indicated: September 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: September 30, 2023 Gross Carrying Accumulated Amount Amortization Total (Dollars in thousands) Core deposit intangibles $ 25,023 $ (16,091) $ 8,932 Customer relationship and brokered relationship intangibles 1,900 (1,694) 206 Below market leases 110 (19) 91 Total $ 27,033 $ (17,804) $ 9,229 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 September 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 $ 555 47 $ (1) $ 601 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 $ 8,932 $ 206 $ 91 $ 9,229 Impairment testing of the intangible assets is performed at the individual asset level. Impairment exists if the carrying amount of the asset is not recoverable and exceeds its fair value at the date of the impairment test. For intangible assets, estimates of expected future cash flows (cash inflows less cash outflows) that are directly associated with an intangible asset are used to determine the fair value of that asset. Management makes certain estimates and assumptions in determining the expected future cash flows from core deposit and customer relationship intangibles including account attrition, expected lives, discount rates, interest rates, servicing costs and other factors. Significant changes in these estimates and assumptions could adversely impact the valuation of these intangible assets. If an impairment loss exists, the carrying amount of the intangible asset is adjusted to a new cost basis. The new cost basis is then amortized over the remaining useful life of the asset. Based on its assessment, management concluded that there was no impairment of intangible assets at September 30, 2023 and December 31, 2022.

Income Taxes

Income Taxes	9 Months Ended
Income Taxes	Sep. 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 $30,578,000 and $32,176,000, at September 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 September 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: September 30, December 31, 2023 2022 (Dollars in thousands) Low income housing investments $ 2,980 $ 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 September 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 $540,000 and $630,000 for the nine months ended September 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	9 Months Ended
Benefit Plans	Sep. 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 Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (Dollars in thousands) Components of net periodic benefit cost: Service cost $ 48 $ 87 $ 144 $ 261 Interest cost 324 216 972 648 Amortization of net actuarial loss 13 114 39 342 Net periodic benefit cost $ 385 $ 417 $ 1,155 $ 1,251 The components of net periodic benefit cost other than the service cost component are included in the line item “other noninterest expense” in the Consolidated Statements of Income. Split-Dollar Life Insurance Benefit Plan The Company maintains life insurance policies for some current and former directors and officers that are subject to split-dollar life insurance agreements. The following table sets forth the funded status of the split-dollar life insurance benefits for the periods indicated: September 30, December 31, 2023 2022 (Dollars in thousands) Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 7,060 $ 9,244 Interest cost 274 246 Actuarial loss — (2,430) Projected benefit obligation at end of period $ 7,334 $ 7,060 September 30, December 31, 2023 2022 (Dollars in thousands) Net actuarial loss $ 2,511 $ 2,301 Prior transition obligation 723 790 Accumulated other comprehensive loss $ 3,234 $ 3,091 Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (Dollars in thousands) Amortization of prior transition obligation and actuarial losses $ (48) $ (10) $ (143) $ (31) Interest cost 92 62 274 185 Net periodic benefit cost $ 44 $ 52 $ 131 $ 154

Fair Value

Fair Value	9 Months Ended
Fair Value	Sep. 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 September 30, 2023 Available-for-sale securities: U.S. Treasury $ 396,996 $ 396,996 $ — $ — Agency mortgage-backed securities 60,198 — 60,198 — I/O strip receivables 125 — 125 — 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 September 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 September 30, 2023 and December 31, 2022, there were The carrying amounts and estimated fair values of financial instruments at September 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 $ 645,552 $ 645,552 $ — $ — $ 645,552 Securities available-for-sale 457,194 396,996 60,198 — 457,194 Securities held-to-maturity 664,681 — 542,009 — 542,009 Loans (including loans held-for-sale) 3,286,302 (1) — 841 3,050,295 3,051,136 FHLB stock, FRB stock, and other investments 32,535 — — — N/A Accrued interest receivable 15,919 1,743 2,668 11,508 15,919 I/O strips receivables 125 — 125 — 125 Liabilities: Time deposits $ 458,873 $ — $ 460,164 $ — $ 460,164 Other deposits 4,116,584 — 4,116,584 — 4,116,584 Subordinated debt 39,463 — 32,663 — 32,663 Accrued interest payable 5,081 — 5,081 — 5,081 (1) Before allowance for credit losses on loans of $47,702,000. 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	9 Months Ended
Equity Plan	Sep. 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, which increased the number of shares available by shares. 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 nine months ended September 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 (54,773) $ 10.57 Outstanding at September 30, 2023 2,676,414 $ 10.31 5.71 $ 1,466,857 Vested or expected to vest 2,515,829 5.71 $ 1,378,845 Exercisable at September 30, 2023 1,915,909 4.49 $ 1,101,078 Information related to the Equity Plans for the periods indicated: Nine Months Ended September 30, 2023 2022 Intrinsic value of options exercised $ 620,013 $ 719,946 Cash received from option exercise $ 996,453 $ 869,950 Tax benefit (expense) realized from option exercises $ (5,902) $ 53,552 Weighted average fair value of options granted $ 1.32 $ 2.18 As of September 30, 2023, there was $1,329,000 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 2.78 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 73,446 $ 7.53 Vested (141,524) $ 7.82 Nonvested shares at September 30, 2023 185,413 $ 10.87 As of September 30, 2023, there was $1,356,000 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 1.35 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 September 30, 2023 119,362 $ 7.41 As of September 30, 2023, there were $762,000 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 September 30, 2023 119,358 $ 7.41 As of September 30, 2023, there were $762,000 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	9 Months Ended
Borrowing Arrangements	Sep. 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 $1,219,962,000 of loans and $377,931,000 of securities pledged to the FHLB as collateral on an available line of credit of $1,151,769,000 at September 30, 2023, none of which was outstanding at September 30, 2023 and December 31, 2022. HBC can also borrow from the FRB discount window. HBC had of which was outstanding at September 30, 2023 and December 31, 2022. At September 30, 2023, HBC had Federal funds purchased arrangements available amounting to $80,000,000. There were no Federal funds purchased outstanding at September 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 September 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 September 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	9 Months Ended
Capital Requirements	Sep. 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 September 30, 2023. There are no conditions or events since September 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 September 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 September 30, 2023 Total Capital $ 587,174 15.6 % $ 395,037 10.5 % (to risk-weighted assets) Tier 1 Capital $ 504,872 13.4 % $ 319,792 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 504,872 13.4 % $ 263,358 7.0 % (to risk-weighted assets) Tier 1 Capital $ 504,872 9.6 % $ 209,433 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 September 30, 2023 Total Capital $ 565,450 15.0 % $ 376,180 10.0 % $ 394,990 10.5 % (to risk-weighted assets) Tier 1 Capital $ 522,611 13.9 % $ 300,945 8.0 % $ 319,754 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 522,611 13.9 % $ 244,518 6.5 % $ 263,327 7.0 % (to risk-weighted assets) Tier 1 Capital $ 522,611 10.0 % $ 261,756 5.0 % $ 209,405 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 $39,463,000 at September 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 of September 30, 2023, HBC would not be required to obtain regulatory approval, and the amount available for cash dividends is $42,085,000 . HBC distributed to HCC dividends of

Commitments and Loss Contingenc

Commitments and Loss Contingencies	9 Months Ended
Commitments and Loss Contingencies	Sep. 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 September 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 the 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. Final resolution of these claims is anticipated in the near future and management does not expect to incur any loss or material legal expenses in connection therewith. 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 cannot 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 $1,167,465,000 at September 30, 2023, and $1,134,619,000 at December 31, 2022. Unused commitments represented 36% and 34% of outstanding gross loans at September 30, 2023 and December 31, 2022, respectively. The effect on the Company’s revenues, expenses, cash flows and liquidity from the unused portion of the commitments to provide credit cannot be reasonably predicted because there is no certainty that lines of credit and letters of credit will ever be fully utilized. The following table presents the Company’s commitments to extend credit for the periods indicated: September 30, 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 $ 73,713 $ 1,078,837 $ 1,152,550 $ 87,348 $ 1,036,847 $ 1,124,195 Standby letters of credit 5,918 8,997 14,915 1,565 8,859 10,424 $ 79,631 $ 1,087,834 $ 1,167,465 $ 88,913 $ 1,045,706 $ 1,134,619 For the nine months ended September 30, 2023, there was a decrease of $29,000 to the allowance for credit losses on the Company’s off-balance sheet credit exposures. The decrease in the allowance for credit losses for off-balance sheet credit exposures in the first nine months of 2023 was driven by lower loan commitments. The allowance for credit losses on the Company’s off-balance sheet credit exposures was $791,000 at September 30, 2023 and $820,000 at December 31, 2022.

Revenue Recognition

Revenue Recognition	9 Months Ended
Revenue Recognition	Sep. 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 September 30, 2023 2022 (Dollars in thousands) Noninterest Income In-scope of Topic 606: Service charges and fees on deposit accounts $ 859 $ 1,360 Total noninterest income in-scope of Topic 606 859 1,360 Noninterest Income Out-of-scope of Topic 606 1,357 1,421 Total noninterest income $ 2,216 $ 2,781 Nine Months Ended September 30, 2023 2022 (Dollars in thousands) Noninterest Income In-scope of Topic 606: Service charges and fees on deposit accounts $ 3,503 $ 2,839 Total noninterest income in-scope of Topic 606 3,503 2,839 Noninterest Income Out-of-scope of Topic 606 3,553 4,500 Total noninterest income $ 7,056 $ 7,339

Noninterest Expense

Noninterest Expense	9 Months Ended
Noninterest Expense	Sep. 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 Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (Dollars in thousands) Salaries and employee benefits $ 14,147 $ 14,119 $ 42,943 $ 41,416 Occupancy and equipment 2,301 2,415 7,123 7,129 Insurance expense 1,595 1,361 4,627 3,447 Data processing 906 562 2,593 1,894 Professional fees 717 1,230 3,265 3,601 Federal Deposit Insurance Corporation ("FDIC") assessments 688 285 1,599 1,215 Software subscriptions 682 509 1,903 1,383 Client services 682 438 1,633 1,375 Other 3,453 2,980 9,877 8,881 Total noninterest expense $ 25,171 $ 23,899 $ 75,563 $ 70,341

Leases

Leases	9 Months Ended
Leases	Sep. 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 The following table presents the quantitative information for the Company’s leases for the periods indicated: Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (Dollars in thousands) Operating Lease Cost (Cost resulting from lease payments) $ 1,677 $ 1,691 $ 5,087 $ 4,931 Operating Lease - Operating Cash Flows (Fixed Payments) $ 1,678 $ 1,252 $ 5,026 $ 3,697 Operating Lease - ROU assets $ 31,979 $ 32,943 $ 31,979 $ 32,943 Operating Lease - Liabilities $ 31,979 $ 32,943 $ 31,979 $ 32,943 Weighted Average Lease Term - Operating Leases 6.10 years 6.86 years 6.10 years 6.86 years Weighted Average Discount Rate - Operating Leases 4.86% 4.44% 4.86% 4.44% The following maturity analysis shows the undiscounted cash flows due on the Company’s operating lease liabilities as of September 30, 2023: (Dollars in thousands) 2023 remaining $ 1,674 2024 6,580 2025 6,036 2026 5,445 2027 5,288 Thereafter 12,268 Total undiscounted cash flows 37,291 Discount on cash flows (5,312) Total lease liability $ 31,979

Business Segment Information

Business Segment Information	9 Months Ended
Business Segment Information	Sep. 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 September 30, 2023 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 58,016 $ 2,775 $ 60,791 Intersegment interest allocations 397 (397) — Total interest expense 15,419 — 15,419 Net interest income 42,994 2,378 45,372 Provision for (recapture of) credit losses on loans 254 (86) 168 Net interest income after provision 42,740 2,464 45,204 Noninterest income 2,044 172 2,216 Noninterest expense 23,588 1,583 25,171 Intersegment expense allocations 109 (109) — Income before income taxes 21,305 944 22,249 Income tax expense 6,175 279 6,454 Net income $ 15,130 $ 665 $ 15,795 Total assets $ 5,314,922 $ 88,385 $ 5,403,307 Loans, net of deferred fees $ 3,233,379 $ 52,082 $ 3,285,461 Goodwill $ 154,587 $ 13,044 $ 167,631 Three Months Ended September 30, 2022 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 46,973 $ 3,201 $ 50,174 Intersegment interest allocations 329 (329) — Total interest expense 2,133 — 2,133 Net interest income 45,169 2,872 48,041 Provision (recapture) for credit losses on loans 1,126 (120) 1,006 Net interest income after provision 44,043 2,992 47,035 Noninterest income 2,677 104 2,781 Noninterest expense 22,216 1,683 23,899 Intersegment expense allocations 128 (128) — Income before income taxes 24,632 1,285 25,917 Income tax expense 7,468 380 7,848 Net income $ 17,164 $ 905 $ 18,069 Total assets $ 5,355,212 $ 76,050 $ 5,431,262 Loans, net of deferred fees $ 3,155,923 $ 60,550 $ 3,216,473 Goodwill $ 154,587 $ 13,044 $ 167,631 (1) Includes the holding company’s results of operations Nine Months Ended September 30, 2023 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 164,783 $ 10,623 $ 175,406 Intersegment interest allocations 1,626 (1,626) — Total interest expense 34,483 — 34,483 Net interest income 131,926 8,997 140,923 Provision for (recapture of) credit losses on loans 807 (347) 460 Net interest income after provision 131,119 9,344 140,463 Noninterest income 6,743 313 7,056 Noninterest expense 70,645 4,918 75,563 Intersegment expense allocations 435 (435) — Income before income taxes 67,652 4,304 71,956 Income tax expense 19,572 1,269 20,841 Net income $ 48,080 $ 3,035 $ 51,115 Total assets $ 5,314,922 $ 88,385 $ 5,403,307 Loans, net of deferred fees $ 3,233,379 $ 52,082 $ 3,285,461 Goodwill $ 154,587 $ 13,044 $ 167,631 Nine Months Ended September 30, 2022 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 124,513 $ 9,123 $ 133,636 Intersegment interest allocations 887 (887) — Total interest expense 5,495 — 5,495 Net interest income 119,905 8,236 128,141 Provision (recapture) for credit losses on loans 259 (1) 258 Net interest income after provision 119,646 8,237 127,883 Noninterest income 7,049 290 7,339 Noninterest expense 65,542 4,799 70,341 Intersegment expense allocations 370 (370) — Income before income taxes 61,523 3,358 64,881 Income tax expense 18,132 993 19,125 Net income $ 43,391 $ 2,365 $ 45,756 Total assets $ 5,355,212 $ 76,050 $ 5,431,262 Loans, net of deferred fees $ 3,155,923 $ 60,550 $ 3,216,473 Goodwill $ 154,587 $ 13,044 $ 167,631 (1) Includes the holding company’s results of operations

Subsequent Events

Subsequent Events	9 Months Ended
Subsequent Events	Sep. 30, 2023
Subsequent Events
Subsequent Events	18) Subsequent Events On October 26, 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 November 21, 2023, to shareholders of record at the close of the business day on November 7, 2023.

Basis of Presentation (Policies

Basis of Presentation (Policies)	9 Months Ended
Basis of Presentation (Policies)	Sep. 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 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 nine months ended September 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)	9 Months Ended
Earnings Per Share (Tables)	Sep. 30, 2023
Earnings Per Share
Schedule of reconciliation of factors used in computing basic and diluted earnings per common share	Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (Dollars in thousands, except per share amounts) Net income $ 15,795 $ 18,069 $ 51,115 $ 45,756 Weighted average common shares outstanding for basic earnings per common share 61,093,289 60,686,992 61,012,315 60,541,015 Dilutive potential common shares 342,951 436,809 272,275 463,825 Shares used in computing diluted earnings per common share 61,436,240 61,123,801 61,284,590 61,004,840 Basic earnings per share $ 0.26 $ 0.30 $ 0.84 $ 0.76 Diluted earnings per share $ 0.26 $ 0.30 $ 0.83 $ 0.75

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Loss) (AOCI) (Tables)	9 Months Ended
	Sep. 30, 2023
Accumulated Other Comprehensive Income (Loss) ("AOCI")
Schedule of changes in AOCI by component	Three Months Ended September 30, 2023 and 2022 Unrealized Losses on Available- Defined for-Sale Benefit Securities Pension and I/O Plan Strips Items(1) Total (Dollars in thousands) Beginning balance July 1, 2023, net of taxes $ (11,719) $ (5,539) $ (17,258) Other comprehensive income (loss) before reclassification, net of taxes (173) (13) (186) Amounts reclassified from other comprehensive income (loss), net of taxes — (25) (25) Net current period other comprehensive income (loss), net of taxes (173) (38) (211) Ending balance September 30, 2023, net of taxes $ (11,892) $ (5,577) $ (17,469) Beginning balance July 1, 2022, net of taxes $ (2,909) $ (13,009) $ (15,918) Other comprehensive income (loss) before reclassification, net of taxes (9,364) (3) (9,367) Amounts reclassified from other comprehensive income (loss), net of taxes — 73 73 Net current period other comprehensive income (loss), net of taxes (9,364) 70 (9,294) Ending balance September 30, 2022, net of taxes $ (12,273) $ (12,939) $ (25,212) Nine Months Ended September 30, 2023 and 2022 Unrealized 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 (498) (41) (539) Amounts reclassified from other comprehensive income (loss), net of taxes — (74) (74) Net current period other comprehensive income (loss), net of taxes (498) (115) (613) Ending balance September 30, 2023, net of taxes $ (11,892) $ (5,577) $ (17,469) Beginning balance January 1, 2022, net of taxes $ 2,153 $ (13,149) $ (10,996) Other comprehensive income (loss) before reclassification, net of taxes (14,426) (9) (14,435) Amounts reclassified from other comprehensive income (loss), net of taxes — 219 219 Net current period other comprehensive income (loss), net of taxes (14,426) 210 (14,216) Ending balance September 30, 2022, net of taxes $ (12,273) $ (12,939) $ (25,212) (1) This AOCI component is included in the computation of net periodic benefit cost (see Note 8—Benefit Plans) and includes split-dollar life insurance benefit plan.
Schedule of reclassifications out of AOCI into net income	Amounts Reclassified from AOCI Three Months Ended September 30, Affected Line Item Where Details About AOCI Components 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 Nine Months Ended September 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) $ 143 $ 31 Prior service cost and actuarial losses (3) (39) (342) 104 (311) Other noninterest expense (30) 92 Income tax benefit 74 (219) Net of tax Total reclassification from AOCI for the period $ 74 $ (219) (1) This AOCI component is included in the computation of net periodic benefit cost (see Note 8—Benefit Plans). (2) This is related to the split dollar life insurance benefit plan. (3) This is related to the supplemental executive retirement plan.

Securities (Tables)

Securities (Tables)	9 Months Ended
Securities (Tables)	Sep. 30, 2023
Securities
Schedule of amortized cost and estimated fair value of securities	Gross Gross Allowance Estimated Amortized Unrealized Unrealized for Credit Fair September 30, 2023 Cost Gains (Losses) Losses Value (Dollars in thousands) Securities available-for-sale: U.S. Treasury $ 406,602 $ — $ (9,606) $ — $ 396,996 Agency mortgage-backed securities 67,383 — (7,185) — 60,198 Total $ 473,985 $ — $ (16,791) $ — $ 457,194 Gross Gross Estimated Allowance Amortized Unrecognized Unrecognized Fair for Credit September 30, 2023 Cost Gains (Losses) Value Losses (Dollars in thousands) Securities held-to-maturity: Agency mortgage-backed securities $ 632,241 $ — $ (119,932) $ 512,309 $ — Municipals - exempt from Federal tax 32,453 — (2,753) 29,700 (13) Total $ 664,694 $ — $ (122,685) $ 542,009 $ (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 September 30, 2023 Value (Losses) Value (Losses) Value (Losses) (Dollars in thousands) Securities available-for-sale: U.S. Treasury $ 4,853 $ (108) $ 392,143 $ (9,498) $ 396,996 $ (9,606) Agency mortgage-backed securities — — 60,198 (7,185) 60,198 (7,185) Total $ 4,853 $ (108) $ 452,341 $ (16,683) $ 457,194 $ (16,791) Securities held-to-maturity: Agency mortgage-backed securities $ 24,959 $ (1,167) $ 487,350 $ (118,765) $ 512,309 $ (119,932) Municipals — exempt from Federal tax 16,723 (1,264) 12,977 (1,489) 29,700 (2,753) Total $ 41,682 $ (2,431) $ 500,327 $ (120,254) $ 542,009 $ (122,685) 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 three months or less $ 15,963 $ 15,947 Due after three months through one year 208,050 204,833 Due after one through five years 182,589 176,216 Agency mortgage-backed securities 67,383 60,198 Total $ 473,985 $ 457,194 Held-to-maturity Amortized Estimated Cost (1) Fair Value (Dollars in thousands) Due after three months through one year $ 1,065 $ 1,055 Due after one through five years 6,459 6,164 Due after five through ten years 24,353 21,946 Due after ten years 576 535 Agency mortgage-backed securities 632,241 512,309 Total $ 664,694 $ 542,009 (1) Gross of the allowance for credit losses of $13,000 at September 30, 2023.
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 Recapture of credit losses (1) Ending balance September 30, 2023 $ 13

Loans and Allowance for Credi_2

Loans and Allowance for Credit Losses on Loans (Tables)	9 Months Ended
Loans and Allowance for Credit Losses on Loans (Tables)	Sep. 30, 2023
Loans and Allowance for Credit Losses on Loans
Schedule of loans	September 30, December 31, 2023 2022 (Dollars in thousands) Loans held-for-investment: Commercial $ 430,664 $ 533,915 Real estate: CRE - owner occupied 589,751 614,663 CRE - non-owner occupied 1,208,324 1,066,368 Land and construction 158,138 163,577 Home equity 124,477 120,724 Multifamily 253,129 244,882 Residential mortgages 503,006 537,905 Consumer and other 18,526 17,033 Loans 3,286,015 3,299,067 Deferred loan fees, net (554) (517) Loans, net of deferred fees 3,285,461 3,298,550 Allowance for credit losses on loans (47,702) (47,512) Loans, net $ 3,237,759 $ 3,251,038
Schedule of changes in allowance for loan (credit) losses	Three Months Ended September 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 $ 6,550 $ 5,463 $ 23,523 $ 2,870 $ 730 $ 4,383 $ 4,129 $ 155 $ 47,803 Charge-offs (447) — — — — — — — (447) Recoveries 59 2 — — 117 — — — 178 Net (charge-offs) recoveries (388) 2 — — 117 — — — (269) Provision for (recapture of) credit losses on loans (557) (120) 1,396 (126) (140) 331 (635) 19 168 End of period balance $ 5,605 $ 5,345 $ 24,919 $ 2,744 $ 707 $ 4,714 $ 3,494 $ 174 $ 47,702 Three Months Ended September 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 $ 6,602 $ 6,009 $ 21,474 $ 2,498 $ 695 $ 2,824 $ 5,232 $ 156 $ 45,490 Charge-offs (7) — — — — — — — (7) Recoveries 202 4 — — 26 — — 200 432 Net recoveries 195 4 — — 26 — — 200 425 Provision for (recapture of) credit losses on loans 302 (96) (416) (7) (36) 406 1,077 (224) 1,006 End of period balance $ 7,099 $ 5,917 $ 21,058 $ 2,491 $ 685 $ 3,230 $ 6,309 $ 132 $ 46,921 Nine Months Ended September 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 (605) — — — (246) — — — (851) Recoveries 247 10 — — 324 — — — 581 Net (charge-offs) recoveries (358) 10 — — 78 — — — (270) Provision for (recapture of) credit losses on loans (654) (416) 2,784 (197) (37) 1,348 (2,413) 45 460 End of period balance $ 5,605 $ 5,345 $ 24,919 $ 2,744 $ 707 $ 4,714 $ 3,494 $ 174 $ 47,702 Nine Months Ended September 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 (378) — — — — — — — (378) Recoveries 335 11 — — 81 — — 3,324 3,751 Net (charge-offs) recoveries (43) 11 — — 81 — — 3,324 3,373 Provision for (recapture of) credit losses on loans (1,272) (2,048) 3,933 660 (260) 434 2,177 (3,366) 258 End of period balance $ 7,099 $ 5,917 $ 21,058 $ 2,491 $ 685 $ 3,230 $ 6,309 $ 132 $ 46,921
Schedule of nonperforming loans	September 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 $ 1,269 $ 443 $ 1,966 $ 3,678 Real estate: CRE - Owner Occupied — — — — CRE - Non-Owner Occupied — — — — Home equity 90 — — 90 Residential mortgages 1,716 — — 1,716 Total $ 3,075 $ 443 $ 1,966 $ 5,484 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	September 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 $ 4,621 $ 1,298 $ 3,382 $ 9,301 $ 421,363 $ 430,664 Real estate: CRE - Owner Occupied — 809 — 809 588,942 589,751 CRE - Non-Owner Occupied — — — — 1,208,324 1,208,324 Land and construction — — — — 158,138 158,138 Home equity — 90 90 124,387 124,477 Multifamily — — — — 253,129 253,129 Residential mortgages — — 1,716 1,716 501,290 503,006 Consumer and other 15 — — 15 18,511 18,526 Total $ 4,636 $ 2,107 $ 5,188 $ 11,931 $ 3,274,084 $ 3,286,015 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 September 30, 2023 Loans 2018 and Amortized 9/30/2023 12/31/2022 12/31/2021 12/31/2020 12/31/2019 Prior Cost Basis Total (Dollars in thousands) Commercial: Pass $ 88,304 $ 26,356 $ 22,309 $ 16,302 $ 13,713 $ 23,489 $ 219,252 $ 409,725 Special Mention 2,020 2,657 492 — 425 1,139 6,015 12,748 Substandard 231 876 521 — 307 3,795 749 6,479 Substandard-Nonaccrual — — 223 — 283 506 700 1,712 Total 90,555 29,889 23,545 16,302 14,728 28,929 226,716 430,664 CRE - Owner Occupied: Pass 25,554 86,171 114,303 69,100 53,704 218,884 10,643 578,359 Special Mention — 1,574 3,263 467 — 4,975 — 10,279 Substandard — — — — 1,107 6 — 1,113 Substandard-Nonaccrual — — — — — — — — Total 25,554 87,745 117,566 69,567 54,811 223,865 10,643 589,751 CRE - Non-Owner Occupied: Pass 176,351 237,904 267,063 28,534 102,839 376,429 2,355 1,191,475 Special Mention — — — — — 8,959 — 8,959 Substandard — — — — — 7,666 224 7,890 Substandard-Nonaccrual — — — — — — — — Total 176,351 237,904 267,063 28,534 102,839 393,054 2,579 1,208,324 Land and construction: Pass 39,051 62,958 33,165 12,184 1,884 — — 149,242 Special Mention — — — — 4,235 — — 4,235 Substandard — — 3,706 955 — — — 4,661 Substandard-Nonaccrual — — — — — — — — Total 39,051 62,958 36,871 13,139 6,119 — — 158,138 Home equity: Pass — — — — — 933 117,621 118,554 Special Mention — — — — — — 2,295 2,295 Substandard — — — — — — 3,538 3,538 Substandard-Nonaccrual — — — — — — 90 90 Total — — — — — 933 123,544 124,477 Multifamily: Pass 28,725 41,477 56,134 5,426 42,397 76,408 325 250,892 Special Mention — — — — — — — — Substandard — — — — — 2,237 — 2,237 Substandard-Nonaccrual — — — — — — — — Total 28,725 41,477 56,134 5,426 42,397 78,645 325 253,129 Residential mortgage: Pass 1,191 178,799 279,895 1,045 7,661 29,730 — 498,321 Special Mention — 1,343 — — — — — 1,343 Substandard — 1,430 — — — 196 — 1,626 Substandard-Nonaccrual — 1,716 — — — — — 1,716 Total 1,191 183,288 279,895 1,045 7,661 29,926 — 503,006 Consumer and other: Pass — 1,380 6 — — 2,081 14,992 18,459 Special Mention — — 67 — — — — 67 Substandard — — — — — — — — Substandard-Nonaccrual — — — — — — — — Total — 1,380 73 — — 2,081 14,992 18,526 Total loans $ 361,427 $ 644,641 $ 781,147 $ 134,013 $ 228,555 $ 757,433 $ 378,799 $ 3,286,015 Risk Grades: Pass $ 359,176 $ 635,045 $ 772,875 $ 132,591 $ 222,198 $ 727,954 $ 365,188 $ 3,215,027 Special Mention 2,020 5,574 3,822 467 4,660 15,073 8,310 39,926 Substandard 231 2,306 4,227 955 1,414 13,900 4,511 27,544 Substandard-Nonaccrual — 1,716 223 — 283 506 790 3,518 Grand Total $ 361,427 $ 644,641 $ 781,147 $ 134,013 $ 228,555 $ 757,433 $ 378,799 $ 3,286,015 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 September 30, 2023 2018 and Revolving 09/30/2023 12/31/2022 12/31/2021 12/31/2020 12/31/2019 Prior Loans Total (Dollars in thousands) Commercial $ 1 $ 45 $ — $ — $ 229 $ 172 $ — $ 447 Real estate: CRE - Owner Occupied — — — — — — — — CRE - Non-Owner Occupied — — — — — — — — Land and construction — — — — — — — — Home equity — — — — — — — — Multifamily — — — — — — — — Residential mortgages — — — — — — — — Consumer and other — — — — — — — — Total $ 1 $ 45 $ — $ — $ 229 $ 172 $ — $ 447 Gross Charge-offs by Originated Period for the Nine Months Ended September 30, 2023 2018 and Revolving 09/30/2023 12/31/2022 12/31/2021 12/31/2020 12/31/2019 Prior Loans Total (Dollars in thousands) Commercial $ 1 $ 49 $ — $ — $ 278 $ 277 $ — $ 605 Real estate: CRE - Owner Occupied — — — — — — — — CRE - Non-Owner Occupied — — — — — — — — Land and construction — — — — — — — — Home equity — — — — — — 246 246 Multifamily — — — — — — — — Residential mortgages — — — — — — — — Consumer and other — — — — — — — — Total $ 1 $ 49 $ — $ — $ 278 $ 277 $ 246 $ 851
Schedule of the amortized cost basis of the loans that were experiencing financial distress and modified	Three Months Ended September 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 $ — $ 25 $ — $ — $ — $ — 0.01 % Total $ — $ 25 $ — $ — $ — $ — 0.01 % Nine Months Ended September 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 $ — $ 79 $ — $ — $ — $ 2 0.02 % Total $ — $ 79 $ — $ — $ — $ 2 0.02 %
Schedule of performance of loans that have been modified	Three Months Ended September 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 $ — $ — $ — $ — Total $ — $ — $ — $ — Nine Months Ended September 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 $ 37 $ — $ — $ 37 Total $ 37 $ — $ — $ 37
Schedule of financial effect of the loan modification presented of borrowers experiencing financial difficulty	Three Months Ended September 30, 2023 Weighted Weighted Average Average Interest Term Principal Rate Extension Forgiveness Reduction (Months) (Dollars in thousands) Commercial $ — — % — Total $ — — % — Nine Months Ended September 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)	9 Months Ended
Goodwill and Other Intangible Assets (Tables)	Sep. 30, 2023
Goodwill and Other Intangible Assets
Schedule of carrying amount of goodwill by segment	September 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	September 30, 2023 Gross Carrying Accumulated Amount Amortization Total (Dollars in thousands) Core deposit intangibles $ 25,023 $ (16,091) $ 8,932 Customer relationship and brokered relationship intangibles 1,900 (1,694) 206 Below market leases 110 (19) 91 Total $ 27,033 $ (17,804) $ 9,229 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 $ 555 47 $ (1) $ 601 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 $ 8,932 $ 206 $ 91 $ 9,229

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
Income Taxes (Tables)	Sep. 30, 2023
Income Taxes
Summary of carrying amount of low income tax housing investment	September 30, December 31, 2023 2022 (Dollars in thousands) Low income housing investments $ 2,980 $ 3,537 Future commitments $ 517 $ 523

Benefit Plans (Tables)

Benefit Plans (Tables)	9 Months Ended
Benefit Plans (Tables)	Sep. 30, 2023
Supplemental Retirement Plan
Benefit plans
Schedule of components of net periodic benefit cost	Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (Dollars in thousands) Components of net periodic benefit cost: Service cost $ 48 $ 87 $ 144 $ 261 Interest cost 324 216 972 648 Amortization of net actuarial loss 13 114 39 342 Net periodic benefit cost $ 385 $ 417 $ 1,155 $ 1,251
Split-Dollar Life Insurance Benefit Plan
Benefit plans
Schedule of change in projected benefit obligation	September 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 274 246 Actuarial loss — (2,430) Projected benefit obligation at end of period $ 7,334 $ 7,060
Schedule of amounts recognized in accumulated other comprehensive loss	September 30, December 31, 2023 2022 (Dollars in thousands) Net actuarial loss $ 2,511 $ 2,301 Prior transition obligation 723 790 Accumulated other comprehensive loss $ 3,234 $ 3,091
Schedule of components of net periodic benefit cost	Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (Dollars in thousands) Amortization of prior transition obligation and actuarial losses $ (48) $ (10) $ (143) $ (31) Interest cost 92 62 274 185 Net periodic benefit cost $ 44 $ 52 $ 131 $ 154

Fair Value (Tables)

Fair Value (Tables)	9 Months Ended
Fair Value (Tables)	Sep. 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 September 30, 2023 Available-for-sale securities: U.S. Treasury $ 396,996 $ 396,996 $ — $ — Agency mortgage-backed securities 60,198 — 60,198 — I/O strip receivables 125 — 125 — 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 September 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 $ 645,552 $ 645,552 $ — $ — $ 645,552 Securities available-for-sale 457,194 396,996 60,198 — 457,194 Securities held-to-maturity 664,681 — 542,009 — 542,009 Loans (including loans held-for-sale) 3,286,302 (1) — 841 3,050,295 3,051,136 FHLB stock, FRB stock, and other investments 32,535 — — — N/A Accrued interest receivable 15,919 1,743 2,668 11,508 15,919 I/O strips receivables 125 — 125 — 125 Liabilities: Time deposits $ 458,873 $ — $ 460,164 $ — $ 460,164 Other deposits 4,116,584 — 4,116,584 — 4,116,584 Subordinated debt 39,463 — 32,663 — 32,663 Accrued interest payable 5,081 — 5,081 — 5,081 (1) Before allowance for credit losses on loans of $47,702,000. 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)	9 Months Ended
Equity Plan (Tables)	Sep. 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 (54,773) $ 10.57 Outstanding at September 30, 2023 2,676,414 $ 10.31 5.71 $ 1,466,857 Vested or expected to vest 2,515,829 5.71 $ 1,378,845 Exercisable at September 30, 2023 1,915,909 4.49 $ 1,101,078
Schedule of information related to the Equity Plans	Nine Months Ended September 30, 2023 2022 Intrinsic value of options exercised $ 620,013 $ 719,946 Cash received from option exercise $ 996,453 $ 869,950 Tax benefit (expense) realized from option exercises $ (5,902) $ 53,552 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 73,446 $ 7.53 Vested (141,524) $ 7.82 Nonvested shares at September 30, 2023 185,413 $ 10.87
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 September 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 September 30, 2023 119,358 $ 7.41

Capital Requirements (Tables)

Capital Requirements (Tables)	9 Months Ended
Capital Requirements (Tables)	Sep. 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 September 30, 2023 Total Capital $ 587,174 15.6 % $ 395,037 10.5 % (to risk-weighted assets) Tier 1 Capital $ 504,872 13.4 % $ 319,792 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 504,872 13.4 % $ 263,358 7.0 % (to risk-weighted assets) Tier 1 Capital $ 504,872 9.6 % $ 209,433 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 September 30, 2023 Total Capital $ 565,450 15.0 % $ 376,180 10.0 % $ 394,990 10.5 % (to risk-weighted assets) Tier 1 Capital $ 522,611 13.9 % $ 300,945 8.0 % $ 319,754 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 522,611 13.9 % $ 244,518 6.5 % $ 263,327 7.0 % (to risk-weighted assets) Tier 1 Capital $ 522,611 10.0 % $ 261,756 5.0 % $ 209,405 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)	9 Months Ended
Commitments and Loss Contingencies (Tables)	Sep. 30, 2023
Commitments and Loss Contingencies
Schedule of commitments to extend credit	September 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 $ 73,713 $ 1,078,837 $ 1,152,550 $ 87,348 $ 1,036,847 $ 1,124,195 Standby letters of credit 5,918 8,997 14,915 1,565 8,859 10,424 $ 79,631 $ 1,087,834 $ 1,167,465 $ 88,913 $ 1,045,706 $ 1,134,619

Revenue Recognition (Tables)

Revenue Recognition (Tables)	9 Months Ended
Revenue Recognition (Tables)	Sep. 30, 2023
Revenue Recognition
Schedule of noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606	Three Months Ended September 30, 2023 2022 (Dollars in thousands) Noninterest Income In-scope of Topic 606: Service charges and fees on deposit accounts $ 859 $ 1,360 Total noninterest income in-scope of Topic 606 859 1,360 Noninterest Income Out-of-scope of Topic 606 1,357 1,421 Total noninterest income $ 2,216 $ 2,781 Nine Months Ended September 30, 2023 2022 (Dollars in thousands) Noninterest Income In-scope of Topic 606: Service charges and fees on deposit accounts $ 3,503 $ 2,839 Total noninterest income in-scope of Topic 606 3,503 2,839 Noninterest Income Out-of-scope of Topic 606 3,553 4,500 Total noninterest income $ 7,056 $ 7,339

Noninterest Expense (Tables)

Noninterest Expense (Tables)	9 Months Ended
Noninterest Expense (Tables)	Sep. 30, 2023
Noninterest Expense
Schedule of noninterest expense	Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (Dollars in thousands) Salaries and employee benefits $ 14,147 $ 14,119 $ 42,943 $ 41,416 Occupancy and equipment 2,301 2,415 7,123 7,129 Insurance expense 1,595 1,361 4,627 3,447 Data processing 906 562 2,593 1,894 Professional fees 717 1,230 3,265 3,601 Federal Deposit Insurance Corporation ("FDIC") assessments 688 285 1,599 1,215 Software subscriptions 682 509 1,903 1,383 Client services 682 438 1,633 1,375 Other 3,453 2,980 9,877 8,881 Total noninterest expense $ 25,171 $ 23,899 $ 75,563 $ 70,341

Leases (Tables)

Leases (Tables)	9 Months Ended
Leases (Tables)	Sep. 30, 2023
Leases
Schedule of leases	Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (Dollars in thousands) Operating Lease Cost (Cost resulting from lease payments) $ 1,677 $ 1,691 $ 5,087 $ 4,931 Operating Lease - Operating Cash Flows (Fixed Payments) $ 1,678 $ 1,252 $ 5,026 $ 3,697 Operating Lease - ROU assets $ 31,979 $ 32,943 $ 31,979 $ 32,943 Operating Lease - Liabilities $ 31,979 $ 32,943 $ 31,979 $ 32,943 Weighted Average Lease Term - Operating Leases 6.10 years 6.86 years 6.10 years 6.86 years Weighted Average Discount Rate - Operating Leases 4.86% 4.44% 4.86% 4.44%
Schedule of maturity analysis shows the undiscounted cash flows due on the company's operating lease liabilities	(Dollars in thousands) 2023 remaining $ 1,674 2024 6,580 2025 6,036 2026 5,445 2027 5,288 Thereafter 12,268 Total undiscounted cash flows 37,291 Discount on cash flows (5,312) Total lease liability $ 31,979

Business Segment Information (T

Business Segment Information (Tables)	9 Months Ended
Business Segment Information (Tables)	Sep. 30, 2023
Business Segment Information
Schedule of information by operating segment	Three Months Ended September 30, 2023 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 58,016 $ 2,775 $ 60,791 Intersegment interest allocations 397 (397) — Total interest expense 15,419 — 15,419 Net interest income 42,994 2,378 45,372 Provision for (recapture of) credit losses on loans 254 (86) 168 Net interest income after provision 42,740 2,464 45,204 Noninterest income 2,044 172 2,216 Noninterest expense 23,588 1,583 25,171 Intersegment expense allocations 109 (109) — Income before income taxes 21,305 944 22,249 Income tax expense 6,175 279 6,454 Net income $ 15,130 $ 665 $ 15,795 Total assets $ 5,314,922 $ 88,385 $ 5,403,307 Loans, net of deferred fees $ 3,233,379 $ 52,082 $ 3,285,461 Goodwill $ 154,587 $ 13,044 $ 167,631 Three Months Ended September 30, 2022 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 46,973 $ 3,201 $ 50,174 Intersegment interest allocations 329 (329) — Total interest expense 2,133 — 2,133 Net interest income 45,169 2,872 48,041 Provision (recapture) for credit losses on loans 1,126 (120) 1,006 Net interest income after provision 44,043 2,992 47,035 Noninterest income 2,677 104 2,781 Noninterest expense 22,216 1,683 23,899 Intersegment expense allocations 128 (128) — Income before income taxes 24,632 1,285 25,917 Income tax expense 7,468 380 7,848 Net income $ 17,164 $ 905 $ 18,069 Total assets $ 5,355,212 $ 76,050 $ 5,431,262 Loans, net of deferred fees $ 3,155,923 $ 60,550 $ 3,216,473 Goodwill $ 154,587 $ 13,044 $ 167,631 (1) Includes the holding company’s results of operations Nine Months Ended September 30, 2023 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 164,783 $ 10,623 $ 175,406 Intersegment interest allocations 1,626 (1,626) — Total interest expense 34,483 — 34,483 Net interest income 131,926 8,997 140,923 Provision for (recapture of) credit losses on loans 807 (347) 460 Net interest income after provision 131,119 9,344 140,463 Noninterest income 6,743 313 7,056 Noninterest expense 70,645 4,918 75,563 Intersegment expense allocations 435 (435) — Income before income taxes 67,652 4,304 71,956 Income tax expense 19,572 1,269 20,841 Net income $ 48,080 $ 3,035 $ 51,115 Total assets $ 5,314,922 $ 88,385 $ 5,403,307 Loans, net of deferred fees $ 3,233,379 $ 52,082 $ 3,285,461 Goodwill $ 154,587 $ 13,044 $ 167,631 Nine Months Ended September 30, 2022 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 124,513 $ 9,123 $ 133,636 Intersegment interest allocations 887 (887) — Total interest expense 5,495 — 5,495 Net interest income 119,905 8,236 128,141 Provision (recapture) for credit losses on loans 259 (1) 258 Net interest income after provision 119,646 8,237 127,883 Noninterest income 7,049 290 7,339 Noninterest expense 65,542 4,799 70,341 Intersegment expense allocations 370 (370) — Income before income taxes 61,523 3,358 64,881 Income tax expense 18,132 993 19,125 Net income $ 43,391 $ 2,365 $ 45,756 Total assets $ 5,355,212 $ 76,050 $ 5,431,262 Loans, net of deferred fees $ 3,155,923 $ 60,550 $ 3,216,473 Goodwill $ 154,587 $ 13,044 $ 167,631 (1) Includes the holding company’s results of operations

Basis of Presentation (Details)

Basis of Presentation (Details)	9 Months Ended
Basis of Presentation (Details)	Sep. 30, 2023 segment customer
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						9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
Reconciliation of factors used in computing basic and diluted earnings per common share
Net income	$ 15,795	$ 16,403	$ 18,917	$ 18,069	$ 14,821	$ 12,866	$ 51,115	$ 45,756
Weighted average common shares outstanding for basic earnings per common share (in shares)	61,093,289			60,686,992			61,012,315	60,541,015
Dilutive potential common shares	342,951			436,809			272,275	463,825
Shares used in computing diluted earnings per common share (in shares)	61,436,240			61,123,801			61,284,590	61,004,840
Basic earnings per share (in dollars per share)	$ 0.26			$ 0.30			$ 0.84	$ 0.76
Diluted earnings per share (in dollars per share)	$ 0.26			$ 0.30			$ 0.83	$ 0.75
Number of shares in computing diluted earnings per common share	1,905,852			1,377,019			1,763,377	1,224,442
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	0						66,458

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Loss) (AOCI) - Changes in AOCI by Component (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 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	$ (211)	$ (2,941)	2,539	$ (9,294)	$ (1,864)	$ (3,058)	(613)	$ (14,216)
Balance at the end of the period, net of taxes	(17,469)						(17,469)
Accumulated Other Comprehensive Loss
Changes in AOCI by Component
Balance at the beginning of the period, net of taxes	(17,258)		(16,856)	(15,918)		(10,996)	(16,856)	(10,996)
Other comprehensive (loss) before reclassification, net of taxes	(186)			(9,367)			(539)	(14,435)
Amounts reclassified from other comprehensive income (loss), net of taxes	(25)			73			(74)	219
Net current period other comprehensive income (loss), net of taxes	(211)	(2,941)	2,539	(9,294)	(1,864)	(3,058)	(613)	(14,216)
Balance at the end of the period, net of taxes	(17,469)	(17,258)		(25,212)	(15,918)		(17,469)	(25,212)
Unrealized 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	(11,719)		(11,394)	(2,909)		2,153	(11,394)	2,153
Other comprehensive (loss) before reclassification, net of taxes	(173)			(9,364)			(498)	(14,426)
Net current period other comprehensive income (loss), net of taxes	(173)			(9,364)			(498)	(14,426)
Balance at the end of the period, net of taxes	(11,892)	(11,719)		(12,273)	(2,909)		(11,892)	(12,273)
Defined Benefit Pension Plan Items
Changes in AOCI by Component
Balance at the beginning of the period, net of taxes	(5,539)		$ (5,462)	(13,009)		$ (13,149)	(5,462)	(13,149)
Other comprehensive (loss) before reclassification, net of taxes	(13)			(3)			(41)	(9)
Amounts reclassified from other comprehensive income (loss), net of taxes	(25)			73			(74)	219
Net current period other comprehensive income (loss), net of taxes	(38)			70			(115)	210
Balance at the end of the period, net of taxes	$ (5,577)	$ (5,539)		$ (12,939)	$ (13,009)		$ (5,577)	$ (12,939)

Accumulated Other Comprehensi_4

Accumulated Other Comprehensive Income (Loss) (AOCI) - Amount Reclassified from AOCI (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
Amount Reclassified from AOCI
Interest income on taxable securities	$ 6,797			$ 5,874			$ 20,835	$ 13,725
Income tax expense	(6,454)			(7,848)			(20,841)	(19,125)
Net income	15,795	$ 16,403	$ 18,917	18,069	$ 14,821	$ 12,866	51,115	45,756
Defined Benefit Pension Plan Items
Amount Reclassified from AOCI
Net of tax	25			(73)			74	(219)
Defined Benefit Pension Plan Items \| Amount Reclassified from AOCI
Amount Reclassified from AOCI
Other noninterest expense	35			(104)			104	(311)
Income tax benefit	(10)			31			(30)	92
Net of tax	25			(73)			74	(219)
Prior transition obligation \| Amount Reclassified from AOCI
Amount Reclassified from AOCI
Other noninterest expense	48			10			143	31
Prior service cost \| Amount Reclassified from AOCI
Amount Reclassified from AOCI
Other noninterest expense	(13)			(114)			(39)	(342)
Accumulated Other Comprehensive Loss
Amount Reclassified from AOCI
Net of tax	25			(73)			74	(219)
Accumulated Other Comprehensive Loss \| Amount Reclassified from AOCI
Amount Reclassified from AOCI
Net of tax	$ 25			$ (73)			$ 74	$ (219)

Securities - Amortized Cost and

Securities - Amortized Cost and Estimated Fair Value of Securities - Securities Available-for-sale (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Securities available-for-sale:
Total	$ 473,985	$ 505,713
Gross Unrealized (Losses)	(16,791)	(16,117)
Estimated Fair Value	457,194	489,596
U.S. Treasury
Securities available-for-sale:
Total	406,602	428,797
Gross Unrealized (Losses)	(9,606)	(10,323)
Estimated Fair Value	396,996	418,474
Agency mortgage-backed securities
Securities available-for-sale:
Total	67,383	76,916
Gross Unrealized (Losses)	(7,185)	(5,794)
Estimated Fair Value	$ 60,198	$ 71,122

Securities - Amortized Cost a_2

Securities - Amortized Cost and Estimated Fair Value of Securities - Securities Held-to-maturity (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Securities held-to-maturity:
Total	$ 664,694,000	$ 715,004,000
Gross Unrecognized Gains		244,000
Gross Unrecognized (Losses)	(122,685,000)	(100,796,000)
Estimated Fair Value	542,009,000	614,452,000
Allowance for credit loss current period	(13,000)	(14,000)
Agency mortgage-backed securities
Securities held-to-maturity:
Total	632,241,000	677,381,000
Gross Unrecognized Gains		235,000
Gross Unrecognized (Losses)	(119,932,000)	(99,977,000)
Estimated Fair Value	512,309,000	577,639,000
Municipals - exempt from Federal tax
Securities held-to-maturity:
Total	32,453,000	37,623,000
Gross Unrecognized Gains		9,000
Gross Unrecognized (Losses)	(2,753,000)	(819,000)
Estimated Fair Value	29,700,000	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	Sep. 30, 2023	Dec. 31, 2022
Securities, Fair Value
Less Than 12 Months	$ 4,853	$ 489,596
12 Months or More	452,341
Total	457,194	489,596
Less Than 12 Months	41,682	167,271
12 Months or More	500,327	429,257
Total	542,009	596,528
Securities, Unrealized (Losses)
Less Than 12 Months	(108)	(16,117)
12 Months or More	(16,683)
Total	(16,791)	(16,117)
Less Than 12 Months	(2,431)	(13,685)
12 Months or More	(120,254)	(87,111)
Total	(122,685)	(100,796)
Agency mortgage-backed securities
Securities, Fair Value
Less Than 12 Months		71,122
12 Months or More	60,198
Total	60,198	71,122
Less Than 12 Months	24,959	136,264
12 Months or More	487,350	429,257
Total	512,309	565,521
Securities, Unrealized (Losses)
Less Than 12 Months		(5,794)
12 Months or More	(7,185)
Total	(7,185)	(5,794)
Less Than 12 Months	(1,167)	(12,866)
12 Months or More	(118,765)	(87,111)
Total	(119,932)	(99,977)
U.S. Treasury
Securities, Fair Value
Less Than 12 Months	4,853	418,474
12 Months or More	392,143
Total	396,996	418,474
Securities, Unrealized (Losses)
Less Than 12 Months	(108)	(10,323)
12 Months or More	(9,498)
Total	(9,606)	(10,323)
Municipals - exempt from Federal tax
Securities, Fair Value
Less Than 12 Months	16,723	31,007
12 Months or More	12,977
Total	29,700	31,007
Securities, Unrealized (Losses)
Less Than 12 Months	(1,264)	(819)
12 Months or More	(1,489)
Total	$ (2,753)	$ (819)

Securities - Additional Informa

Securities - Additional Information (Details)	9 Months Ended
Securities - Additional Information (Details)	Sep. 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	442
Number of available for sale securities held	168
Number of held to maturity securities held	274
Number of securities with fair values below amortized cost	438

Securities - Amortized Cost a_3

Securities - Amortized Cost and Fair Value of Debt Securities by Contractual Maturity - Securities Available-for-sale (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Available-for-sale, Amortized Cost
Due three months or less	$ 15,963
Due after three months through one year	208,050
Due after one through five years	182,589
Agency mortgage-backed securities	67,383
Total	473,985	$ 505,713
Available-for-sale, Estimated Fair Value
Due 3 months or less	15,947
Due after three months through one year	204,833
Due after one year through five years	176,216
Agency mortgage-backed securities	60,198
Total	$ 457,194	$ 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 ($)	Sep. 30, 2023	Dec. 31, 2022
Held-to-maturity, Amortized Cost
Due after three months through one year	$ 1,065,000
Due after one year through five years	6,459,000
Due after five years through ten years	24,353,000
Due after ten years	576,000
Agency mortgage-backed securities	632,241,000
Total	664,694,000
Held-to-maturity, Estimated Fair Value
Due after three months through one year	1,055,000
Due after one year through five years	6,164,000
Due after five years through ten years	21,946,000
Due after ten years	535,000
Agency mortgage-backed securities	512,309,000
Total	542,009,000	$ 614,452,000
Allowance for credit loss current period	$ 13,000	$ 14,000

Securities - Securities Pledged

Securities - Securities Pledged to Secure Public Deposits and for Other Purposes (Details) - USD ($)	Sep. 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	$ 1,055,583,000	$ 66,272,000

Securities - Roll-forward by ma

Securities - Roll-forward by major security type (Details)	9 Months Ended
Securities - Roll-forward by major security type (Details)	Sep. 30, 2023 USD ($)
Securities
Allowance for credit loss current period - Beginning Balance	$ 14,000
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 ($)	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
Loans held-for-investment:
Total loan balance	$ 3,286,015,000		$ 3,299,067,000
Deferred loan fees, net	(554,000)		(517,000)
Total loan balance	3,285,461,000		3,298,550,000	$ 3,216,473,000
Allowance for credit losses on loans	(47,702,000)	$ (47,803,000)	(47,512,000)	(46,921,000)	$ (45,490,000)	$ (43,290,000)
Loans, net	3,237,759,000		3,251,038,000
Commercial. \| Commercial
Loans held-for-investment:
Total loan balance	430,664,000		533,915,000
Allowance for credit losses on loans	(5,605,000)	(6,550,000)	(6,617,000)	(7,099,000)	(6,602,000)	(8,414,000)
Commercial. \| SBA Paycheck Protection Program ("PPP") loans
Loans held-for-investment:
Total loan balance	473,000
Loans, net			1,166,000
Commercial. \| Bay View Funding
Loans held-for-investment:
Loans, net	52,082,000		79,263,000
Real estate \| CRE - Owner Occupied
Loans held-for-investment:
Total loan balance	589,751,000		614,663,000
Allowance for credit losses on loans	(5,345,000)	(5,463,000)	(5,751,000)	(5,917,000)	(6,009,000)	(7,954,000)
Real estate \| CRE - Non-Owner Occupied
Loans held-for-investment:
Total loan balance	1,208,324,000		1,066,368,000
Allowance for credit losses on loans	(24,919,000)	(23,523,000)	(22,135,000)	(21,058,000)	(21,474,000)	(17,125,000)
Real estate \| Land & Construction
Loans held-for-investment:
Total loan balance	158,138,000		163,577,000
Allowance for credit losses on loans	(2,744,000)	(2,870,000)	(2,941,000)	(2,491,000)	(2,498,000)	(1,831,000)
Real estate \| Home Equity
Loans held-for-investment:
Total loan balance	124,477,000		120,724,000
Allowance for credit losses on loans	(707,000)	(730,000)	(666,000)	(685,000)	(695,000)	(864,000)
Real estate \| Multi-Family
Loans held-for-investment:
Total loan balance	253,129,000		244,882,000
Allowance for credit losses on loans	(4,714,000)	(4,383,000)	(3,366,000)	(3,230,000)	(2,824,000)	(2,796,000)
Real estate \| Residential Mortgage
Loans held-for-investment:
Total loan balance	503,006,000		537,905,000
Allowance for credit losses on loans	(3,494,000)	(4,129,000)	(5,907,000)	(6,309,000)	(5,232,000)	(4,132,000)
Consumer \| Consumer and Other
Loans held-for-investment:
Total loan balance	18,526,000		17,033,000
Allowance for credit losses on loans	$ (174,000)	$ (155,000)	$ (129,000)	$ (132,000)	$ (156,000)	$ (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		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning of period balance	$ 47,803,000	$ 45,490,000	$ 47,512,000	$ 43,290,000
Charge-offs	(447,000)	(7,000)	(851,000)	(378,000)
Recoveries	178,000	432,000	581,000	3,751,000
Net (charge-offs) recoveries	(269,000)	425,000	(270,000)	3,373,000
Provision for (recapture of) credit losses on loans	168,000	1,006,000	460,000	258,000
End of period balance	47,702,000	46,921,000	47,702,000	46,921,000
Commercial. \| Commercial
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning of period balance	6,550,000	6,602,000	6,617,000	8,414,000
Charge-offs	(447,000)	(7,000)	(605,000)	(378,000)
Recoveries	59,000	202,000	247,000	335,000
Net (charge-offs) recoveries	(388,000)	195,000	(358,000)	(43,000)
Provision for (recapture of) credit losses on loans	(557,000)	302,000	(654,000)	(1,272,000)
End of period balance	5,605,000	7,099,000	5,605,000	7,099,000
Real estate \| CRE - Owner Occupied
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning of period balance	5,463,000	6,009,000	5,751,000	7,954,000
Recoveries	2,000	4,000	10,000	11,000
Net (charge-offs) recoveries	2,000	4,000	10,000	11,000
Provision for (recapture of) credit losses on loans	(120,000)	(96,000)	(416,000)	(2,048,000)
End of period balance	5,345,000	5,917,000	5,345,000	5,917,000
Real estate \| CRE - Non-Owner Occupied
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning of period balance	23,523,000	21,474,000	22,135,000	17,125,000
Provision for (recapture of) credit losses on loans	1,396,000	(416,000)	2,784,000	3,933,000
End of period balance	24,919,000	21,058,000	24,919,000	21,058,000
Real estate \| Land & Construction
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning of period balance	2,870,000	2,498,000	2,941,000	1,831,000
Provision for (recapture of) credit losses on loans	(126,000)	(7,000)	(197,000)	660,000
End of period balance	2,744,000	2,491,000	2,744,000	2,491,000
Real estate \| Home Equity
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning of period balance	730,000	695,000	666,000	864,000
Charge-offs			(246,000)
Recoveries	117,000	26,000	324,000	81,000
Net (charge-offs) recoveries	117,000	26,000	78,000	81,000
Provision for (recapture of) credit losses on loans	(140,000)	(36,000)	(37,000)	(260,000)
End of period balance	707,000	685,000	707,000	685,000
Real estate \| Multi-Family
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning of period balance	4,383,000	2,824,000	3,366,000	2,796,000
Provision for (recapture of) credit losses on loans	331,000	406,000	1,348,000	434,000
End of period balance	4,714,000	3,230,000	4,714,000	3,230,000
Real estate \| Residential Mortgage
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning of period balance	4,129,000	5,232,000	5,907,000	4,132,000
Provision for (recapture of) credit losses on loans	(635,000)	1,077,000	(2,413,000)	2,177,000
End of period balance	3,494,000	6,309,000	3,494,000	6,309,000
Consumer \| Consumer and Other
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning of period balance	155,000	156,000	129,000	174,000
Recoveries		200,000		3,324,000
Net (charge-offs) recoveries		200,000		3,324,000
Provision for (recapture of) credit losses on loans	19,000	(224,000)	45,000	(3,366,000)
End of period balance	$ 174,000	$ 132,000	$ 174,000	$ 132,000

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	Sep. 30, 2023	Dec. 31, 2022
Nonperforming Loans by Class
Nonaccrual with no Specific Allowance for Credit Losses	$ 3,075	$ 416
Nonaccrual with Specific Allowance for Credit	443	324
Restructured and loans over 90 days past due and still accruing	1,966	1,685
Total	5,484	2,425
Commercial. \| Commercial
Nonperforming Loans by Class
Nonaccrual with no Specific Allowance for Credit Losses	1,269	318
Nonaccrual with Specific Allowance for Credit	443	324
Restructured and loans over 90 days past due and still accruing	1,966	349
Total	3,678	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	90	98
Total	90	$ 98
Real estate \| Residential Mortgage
Nonperforming Loans by Class
Nonaccrual with no Specific Allowance for Credit Losses	1,716
Total	$ 1,716

Loans and Allowance for Credi_6

Loans and Allowance for Credit Losses on Loans - Aging of Past Due Loans by Class of Loans (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Aging of Past Due Loans by Class of Loans
Total loan balance	$ 3,286,015,000	$ 3,299,067,000
30-59 Days Past Due
Aging of Past Due Loans by Class of Loans
Total loan balance	4,636,000	11,690,000
60-89 Days Past Due
Aging of Past Due Loans by Class of Loans
Total loan balance	2,107,000	3,337,000
90 Days or Greater Past Due
Aging of Past Due Loans by Class of Loans
Total loan balance	5,188,000	2,039,000
Past due
Aging of Past Due Loans by Class of Loans
Total loan balance	11,931,000	17,066,000
Current
Aging of Past Due Loans by Class of Loans
Total loan balance	3,274,084,000	3,282,001,000
Commercial. \| Commercial
Aging of Past Due Loans by Class of Loans
Total loan balance	430,664,000	533,915,000
Commercial. \| Commercial \| 30-59 Days Past Due
Aging of Past Due Loans by Class of Loans
Total loan balance	4,621,000	7,236,000
Commercial. \| Commercial \| 60-89 Days Past Due
Aging of Past Due Loans by Class of Loans
Total loan balance	1,298,000	2,519,000
Commercial. \| Commercial \| 90 Days or Greater Past Due
Aging of Past Due Loans by Class of Loans
Total loan balance	3,382,000	703,000
Commercial. \| Commercial \| Past due
Aging of Past Due Loans by Class of Loans
Total loan balance	9,301,000	10,458,000
Commercial. \| Commercial \| Current
Aging of Past Due Loans by Class of Loans
Total loan balance	421,363,000	523,457,000
Real estate \| CRE - Owner Occupied
Aging of Past Due Loans by Class of Loans
Total loan balance	589,751,000	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 \| 60-89 Days Past Due
Aging of Past Due Loans by Class of Loans
Total loan balance	809,000
Real estate \| CRE - Owner Occupied \| Past due
Aging of Past Due Loans by Class of Loans
Total loan balance	809,000	252,000
Real estate \| CRE - Owner Occupied \| Current
Aging of Past Due Loans by Class of Loans
Total loan balance	588,942,000	614,411,000
Real estate \| CRE - Non-Owner Occupied
Aging of Past Due Loans by Class of Loans
Total loan balance	1,208,324,000	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	1,208,324,000	1,065,032,000
Real estate \| Land & Construction
Aging of Past Due Loans by Class of Loans
Total loan balance	158,138,000	163,577,000
Real estate \| Land & Construction \| Current
Aging of Past Due Loans by Class of Loans
Total loan balance	158,138,000	163,577,000
Real estate \| Home Equity
Aging of Past Due Loans by Class of Loans
Total loan balance	124,477,000	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	90,000
Real estate \| Home Equity \| Past due
Aging of Past Due Loans by Class of Loans
Total loan balance	90,000	98,000
Real estate \| Home Equity \| Current
Aging of Past Due Loans by Class of Loans
Total loan balance	124,387,000	120,626,000
Real estate \| Multi-Family
Aging of Past Due Loans by Class of Loans
Total loan balance	253,129,000	244,882,000
Real estate \| Multi-Family \| Current
Aging of Past Due Loans by Class of Loans
Total loan balance	253,129,000	244,882,000
Real estate \| Residential Mortgage
Aging of Past Due Loans by Class of Loans
Total loan balance	503,006,000	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		720,000
Real estate \| Residential Mortgage \| 90 Days or Greater Past Due
Aging of Past Due Loans by Class of Loans
Total loan balance	1,716,000
Real estate \| Residential Mortgage \| Past due
Aging of Past Due Loans by Class of Loans
Total loan balance	1,716,000	4,922,000
Real estate \| Residential Mortgage \| Current
Aging of Past Due Loans by Class of Loans
Total loan balance	501,290,000	532,983,000
Consumer \| Consumer and Other
Aging of Past Due Loans by Class of Loans
Total loan balance	18,526,000	17,033,000
Consumer \| Consumer and Other \| 30-59 Days Past Due
Aging of Past Due Loans by Class of Loans
Total loan balance	15,000
Consumer \| Consumer and Other \| Past due
Aging of Past Due Loans by Class of Loans
Total loan balance	15,000
Consumer \| Consumer and Other \| Current
Aging of Past Due Loans by Class of Loans
Total loan balance	$ 18,511,000	$ 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 ($)	Sep. 30, 2023	Dec. 31, 2022
Aging of Past Due Loans by Class of Loans
Total loan balance	$ 3,286,015,000	$ 3,299,067,000
Nonaccrual loans	5,484,000	2,425,000
30 days or greater past due
Aging of Past Due Loans by Class of Loans
Nonaccrual loans	2,522,000	479,000
Less than 30 days past due
Aging of Past Due Loans by Class of Loans
Nonaccrual loans	996,000	261,000
Past due
Aging of Past Due Loans by Class of Loans
Total loan balance	$ 11,931,000	$ 17,066,000

Loans and Allowance for Credi_8

Loans and Allowance for Credit Losses on Loans - Credit Quality Indicators (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Loans
2023/ 2022	$ 361,427	$ 735,274
2022/ 2021	644,641	874,235
2021/ 2020	781,147	161,375
2020/ 2019	134,013	240,466
2019/ 2018	228,555	155,623
Prior Periods	757,433	680,984
Revolving	378,799	451,110
Total loan balance	3,286,015	3,299,067
Balance to report	3,237,759	3,251,038
Loan classified as loss
Loans
Balance to report	0	0
Risk Grades [Member]
Loans
2023/ 2022	361,427	735,274
2022/ 2021	644,641	874,235
2021/ 2020	781,147	161,375
2020/ 2019	134,013	240,466
2019/ 2018	228,555	155,623
Prior Periods	757,433	680,984
Revolving	378,799	451,110
Total loan balance	3,286,015	3,299,067
Risk Grades [Member] \| Pass [Member]
Loans
2023/ 2022	359,176	731,862
2022/ 2021	635,045	870,023
2021/ 2020	772,875	159,659
2020/ 2019	132,591	236,243
2019/ 2018	222,198	153,618
Prior Periods	727,954	653,756
Revolving	365,188	437,326
Total loan balance	3,215,027	3,242,487
Risk Grades [Member] \| Special Mention [Member]
Loans
2023/ 2022	2,020	3,408
2022/ 2021	5,574	3,175
2021/ 2020	3,822	1,716
2020/ 2019	467	4,078
2019/ 2018	4,660	1,482
Prior Periods	15,073	20,031
Revolving	8,310	8,146
Total loan balance	39,926	42,036
Risk Grades [Member] \| Substandard [Member]
Loans
2023/ 2022	231	4
2022/ 2021	2,306	660
2021/ 2020	4,227
2020/ 2019	955	145
2019/ 2018	1,414	193
Prior Periods	13,900	7,164
Revolving	4,511	5,638
Total loan balance	27,544	13,804
Risk Grades [Member] \| Substandard-Nonaccrual [Member]
Loans
2022/ 2021	1,716	377
2021/ 2020	223
2019/ 2018	283	330
Prior Periods	506	33
Revolving	790
Total loan balance	3,518	740
Commercial. \| Commercial
Loans
2023/ 2022	90,555	106,381
2022/ 2021	29,889	38,091
2021/ 2020	23,545	24,598
2020/ 2019	16,302	20,540
2019/ 2018	14,728	12,419
Prior Periods	28,929	27,293
Revolving	226,716	304,593
Total loan balance	430,664	533,915
Commercial. \| Commercial \| Pass [Member]
Loans
2023/ 2022	88,304	102,969
2022/ 2021	26,356	36,752
2021/ 2020	22,309	24,406
2020/ 2019	16,302	19,272
2019/ 2018	13,713	12,089
Prior Periods	23,489	21,127
Revolving	219,252	293,546
Total loan balance	409,725	510,161
Commercial. \| Commercial \| Special Mention [Member]
Loans
2023/ 2022	2,020	3,408
2022/ 2021	2,657	1,060
2021/ 2020	492	192
2020/ 2019		1,123
2019/ 2018	425
Prior Periods	1,139	6,031
Revolving	6,015	5,551
Total loan balance	12,748	17,365
Commercial. \| Commercial \| Substandard [Member]
Loans
2023/ 2022	231	4
2022/ 2021	876
2021/ 2020	521
2020/ 2019		145
2019/ 2018	307
Prior Periods	3,795	102
Revolving	749	5,496
Total loan balance	6,479	5,747
Commercial. \| Commercial \| Substandard-Nonaccrual [Member]
Loans
2022/ 2021		279
2021/ 2020	223
2019/ 2018	283	330
Prior Periods	506	33
Revolving	700
Total loan balance	1,712	642
Real estate \| CRE - Owner Occupied
Loans
2023/ 2022	25,554	92,689
2022/ 2021	87,745	118,959
2021/ 2020	117,566	75,874
2020/ 2019	69,567	61,007
2019/ 2018	54,811	58,373
Prior Periods	223,865	199,003
Revolving	10,643	8,758
Total loan balance	589,751	614,663
Real estate \| CRE - Owner Occupied \| Pass [Member]
Loans
2023/ 2022	25,554	92,689
2022/ 2021	86,171	116,266
2021/ 2020	114,303	75,007
2020/ 2019	69,100	59,887
2019/ 2018	53,704	58,180
Prior Periods	218,884	194,584
Revolving	10,643	8,758
Total loan balance	578,359	605,371
Real estate \| CRE - Owner Occupied \| Special Mention [Member]
Loans
2022/ 2021	1,574	2,033
2021/ 2020	3,263	867
2020/ 2019	467	1,120
Prior Periods	4,975	4,410
Total loan balance	10,279	8,430
Real estate \| CRE - Owner Occupied \| Substandard [Member]
Loans
2022/ 2021		660
2019/ 2018	1,107	193
Prior Periods	6	9
Total loan balance	1,113	862
Real estate \| CRE - Non-Owner Occupied
Loans
2023/ 2022	176,351	239,556
2022/ 2021	237,904	278,051
2021/ 2020	267,063	31,848
2020/ 2019	28,534	101,854
2019/ 2018	102,839	63,905
Prior Periods	393,054	347,909
Revolving	2,579	3,245
Total loan balance	1,208,324	1,066,368
Real estate \| CRE - Non-Owner Occupied \| Pass [Member]
Loans
2023/ 2022	176,351	239,556
2022/ 2021	237,904	278,051
2021/ 2020	267,063	31,848
2020/ 2019	28,534	101,854
2019/ 2018	102,839	63,905
Prior Periods	376,429	337,048
Revolving	2,355	3,245
Total loan balance	1,191,475	1,055,507
Real estate \| CRE - Non-Owner Occupied \| Special Mention [Member]
Loans
Prior Periods	8,959	4,883
Total loan balance	8,959	4,883
Real estate \| CRE - Non-Owner Occupied \| Substandard [Member]
Loans
Prior Periods	7,666	5,978
Revolving	224
Total loan balance	7,890	5,978
Real estate \| Land & Construction
Loans
2023/ 2022	39,051	62,241
2022/ 2021	62,958	72,847
2021/ 2020	36,871	22,459
2020/ 2019	13,139	6,030
2019/ 2018	6,119
Total loan balance	158,138	163,577
Real estate \| Land & Construction \| Pass [Member]
Loans
2023/ 2022	39,051	62,241
2022/ 2021	62,958	72,847
2021/ 2020	33,165	22,459
2020/ 2019	12,184	6,030
2019/ 2018	1,884
Total loan balance	149,242	163,577
Real estate \| Land & Construction \| Special Mention [Member]
Loans
2019/ 2018	4,235
Total loan balance	4,235
Real estate \| Land & Construction \| Substandard [Member]
Loans
2021/ 2020	3,706
2020/ 2019	955
Total loan balance	4,661
Real estate \| Home Equity
Loans
2022/ 2021		98
Prior Periods	933	188
Revolving	123,544	120,438
Total loan balance	124,477	120,724
Real estate \| Home Equity \| Pass [Member]
Loans
Prior Periods	933	44
Revolving	117,621	117,950
Total loan balance	118,554	117,994
Real estate \| Home Equity \| Special Mention [Member]
Loans
Revolving	2,295	2,346
Total loan balance	2,295	2,346
Real estate \| Home Equity \| Substandard [Member]
Loans
Prior Periods		144
Revolving	3,538	142
Total loan balance	3,538	286
Real estate \| Home Equity \| Substandard-Nonaccrual [Member]
Loans
2022/ 2021		98
Revolving	90
Total loan balance	90	98
Real estate \| Multi-Family
Loans
2023/ 2022	28,725	42,111
2022/ 2021	41,477	69,824
2021/ 2020	56,134	5,528
2020/ 2019	5,426	43,183
2019/ 2018	42,397	15,356
Prior Periods	78,645	68,700
Revolving	325	180
Total loan balance	253,129	244,882
Real estate \| Multi-Family \| Pass [Member]
Loans
2023/ 2022	28,725	42,111
2022/ 2021	41,477	69,824
2021/ 2020	56,134	4,871
2020/ 2019	5,426	42,412
2019/ 2018	42,397	15,356
Prior Periods	76,408	66,380
Revolving	325	180
Total loan balance	250,892	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	2,237
Total loan balance	2,237
Real estate \| Residential Mortgage
Loans
2023/ 2022	1,191	191,907
2022/ 2021	183,288	296,270
2021/ 2020	279,895	1,068
2020/ 2019	1,045	7,846
2019/ 2018	7,661	4,206
Prior Periods	29,926	36,608
Total loan balance	503,006	537,905
Real estate \| Residential Mortgage \| Pass [Member]
Loans
2023/ 2022	1,191	191,907
2022/ 2021	178,799	296,270
2021/ 2020	279,895	1,068
2020/ 2019	1,045	6,788
2019/ 2018	7,661	2,724
Prior Periods	29,730	33,290
Total loan balance	498,321	532,047
Real estate \| Residential Mortgage \| Special Mention [Member]
Loans
2022/ 2021	1,343
2020/ 2019		1,058
2019/ 2018		1,482
Prior Periods		2,387
Total loan balance	1,343	4,927
Real estate \| Residential Mortgage \| Substandard [Member]
Loans
2022/ 2021	1,430
Prior Periods	196	931
Total loan balance	1,626	931
Real estate \| Residential Mortgage \| Substandard-Nonaccrual [Member]
Loans
2022/ 2021	1,716
Total loan balance	1,716
Consumer \| Consumer and Other
Loans
2023/ 2022		389
2022/ 2021	1,380	95
2021/ 2020	73
2020/ 2019		6
2019/ 2018		1,364
Prior Periods	2,081	1,283
Revolving	14,992	13,896
Total loan balance	18,526	17,033
Consumer \| Consumer and Other \| Pass [Member]
Loans
2023/ 2022		389
2022/ 2021	1,380	13
2021/ 2020	6
2019/ 2018		1,364
Prior Periods	2,081	1,283
Revolving	14,992	13,647
Total loan balance	18,459	16,696
Consumer \| Consumer and Other \| Special Mention [Member]
Loans
2022/ 2021		82
2021/ 2020	67
2020/ 2019		6
Revolving		249
Total loan balance	$ 67	$ 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		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Current period gross charge-offs
09/30/2023	$ 1		$ 1
12/31/2022	45		49
12/31/2019	229		278
2018 and Prior	172		277
Revolving Loans			246
Total	447	$ 7	851	$ 378
Commercial. \| Commercial
Current period gross charge-offs
09/30/2023	1		1
12/31/2022	45		49
12/31/2019	229		278
2018 and Prior	172		277
Total	$ 447	$ 7	605	$ 378
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 ($)	Sep. 30, 2023	Dec. 31, 2022
Business Assets
Financing Receivable, Recorded Investment, Past Due [Line Items]
Collateral dependent loans	$ 443,000	$ 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	9 Months Ended
	Sep. 30, 2023 USD ($) loan	Sep. 30, 2023 USD ($) 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%	0.02%
Amount committed to borrowers	$ 0	$ 0
Principal Forgiveness
Financing Receivable, Modifications [Line Items]
Total		3,000
Payment Delay
Financing Receivable, Modifications [Line Items]
Total	$ 25,000	79,000
Combination Term Extension and Interest Rate Reduction
Financing Receivable, Modifications [Line Items]
Total		$ 2,000
Commercial. \| Commercial
Financing Receivable, Modifications [Line Items]
Total Class of Financing Receivables	0.01%	0.02%
Commercial. \| Commercial \| Principal Forgiveness
Financing Receivable, Modifications [Line Items]
Total		$ 3,000
Commercial. \| Commercial \| Payment Delay
Financing Receivable, Modifications [Line Items]
Total	$ 25,000	79,000
Commercial. \| Commercial \| Combination Term Extension and Interest Rate Reduction
Financing Receivable, Modifications [Line Items]
Total		$ 2,000

Loans and Allowance for Cred_12

Loans and Allowance for Credit Losses on Loans - Performance of loans that have been modified (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2023 USD ($)
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total financing receivable modified	$ 37
30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total financing receivable modified	37
Commercial. \| Commercial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total financing receivable modified	37
Commercial. \| Commercial \| 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total financing receivable modified	$ 37

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	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2023
Financing Receivable, Modifications [Line Items]
Weighted Average Interest Rate Reduction		0.25%
Weighted Average Term Extension (Months)		14 months
Payment default for loans modified	$ 0	$ 0
Principal Forgiveness [Member]
Financing Receivable, Modifications [Line Items]
Principal Forgiveness		$ 3,000
Commercial. \| Commercial
Financing Receivable, Modifications [Line Items]
Weighted Average Interest Rate Reduction		0.25%
Weighted Average Term Extension (Months)		14 months
Commercial. \| Commercial \| Principal Forgiveness [Member]
Financing Receivable, Modifications [Line Items]
Principal Forgiveness		$ 3,000

Goodwill and Other Intangible_3

Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Dec. 31, 2022	Sep. 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	Sep. 30, 2023	Dec. 31, 2022
Other Intangible Assets
Gross Carrying amount	$ 27,033	$ 27,033
Accumulated Amortization	(17,804)	(16,000)
Total	9,229	11,033
Core deposit intangibles
Other Intangible Assets
Gross Carrying amount	25,023	25,023
Accumulated Amortization	(16,091)	(14,429)
Total	8,932	10,594
Customer relationship and brokered relationship
Other Intangible Assets
Gross Carrying amount	1,900	1,900
Accumulated Amortization	(1,694)	(1,551)
Total	206	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	Sep. 30, 2023	Dec. 31, 2022
Estimated Amortization Expense
2023 remaining	$ 601
2024	2,187
2025	1,813
2026	1,530
2027	1,456
2028	1,017
2029	625
Total	9,229	$ 11,033
Core deposit
Estimated Amortization Expense
2023 remaining	555
2024	2,023
2025	1,795
2026	1,512
2027	1,438
2028	999
2029	610
Total	8,932	10,594
Customer relationship and brokered relationship
Estimated Amortization Expense
2023 remaining	47
2024	159
Total	206	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	9 Months Ended	12 Months Ended
	Sep. 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	Sep. 30, 2023	Dec. 31, 2022
Net deferred tax assets
Net deferred tax assets	$ 30,578	$ 32,176
Valuation allowance for deferred tax assets	$ 0	$ 0

Income Taxes - Carry Amounts of

Income Taxes - Carry Amounts of the Low Income Housing Investments (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Income Taxes
Low income housing investments	$ 2,980	$ 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	Sep. 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		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Taxes
Low income housing tax credits	$ 180,000	$ 210,000	$ 540,000	$ 630,000
Low income housing investment expense	$ 186,000	$ 211,000	$ 557,000	$ 632,000

Benefit Plans - Defined Benefit

Benefit Plans - Defined Benefit Plans - Nonqualified Defined Benefit Pension Plan (Details) $ in Thousands	Sep. 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		9 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Supplemental Retirement Plan
Components of net periodic benefit cost:
Service cost	$ 48	$ 87	$ 144	$ 261
Interest cost	324	216	972	648
Amortization of net actuarial loss	13	114	39	342
Net periodic benefit cost	385	417	1,155	1,251
Split-Dollar Life Insurance Benefit Plan
Components of net periodic benefit cost:
Amortization of prior transition obligation and actuarial losses	(48)	(10)	(143)	(31)
Interest cost	92	62	274	185	$ 246
Net periodic benefit cost	$ 44	$ 52	$ 131	$ 154

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		9 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 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	$ 92	$ 62	274	$ 185	246
Actuarial loss					(2,430)
Projected benefit obligation at end of period	$ 7,334		$ 7,334		$ 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	Sep. 30, 2023	Dec. 31, 2022
Amounts Recognized in Accumulated Other Comprehensive Loss
Net actuarial loss	$ 2,511	$ 2,301
Prior transition obligation	723	790
Accumulated other comprehensive loss	$ 3,234	$ 3,091

Fair Value - Financial Assets a

Fair Value - Financial Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	$ 457,194	$ 489,596
U.S. Treasury
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	396,996	418,474
Agency mortgage-backed securities
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	60,198	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	125	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	396,996	418,474
Recurring basis \| Agency mortgage-backed securities
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	60,198
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	396,996	418,474
Recurring basis \| Significant Other Observable Inputs (Level 2)
Financial Assets and Liabilities Measured on a Recurring Basis
I/O strip receivables	125	$ 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	$ 60,198

Fair Value - Impaired Loans Hel

Fair Value - Impaired Loans Held-for-investment - Additional Disclosures (Details) - USD ($) $ in Thousands	Sep. 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 ($)	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
Assets
Securities available-for-sale	$ 457,194,000		$ 489,596,000
Securities held-to-maturity	542,009,000		614,452,000
FHLB stock, FRB stock, and other investments	32,535,000		32,522,000
Liabilities
Subordinated debt	39,463,000		39,350,000
Allowance for credit losses on loans	47,702,000	$ 47,803,000	47,512,000	$ 46,921,000	$ 45,490,000	$ 43,290,000
Carrying Amounts
Assets
Cash and cash equivalents	645,552,000		306,603,000
Securities available-for-sale	457,194,000		489,596,000
Securities held-to-maturity	664,681,000		714,990,000
Loans (including loans held-for-sale)	3,286,302,000		3,301,006,000
FHLB stock, FRB stock, and other investments	32,535,000		32,522,000
Accrued interest receivable	15,919,000		15,047,000
I/O strips receivables	125,000		152,000
Liabilities
Time deposits	458,873,000		143,958,000
Other deposits	4,116,584,000		4,245,646,000
Subordinated debt	39,463,000		39,350,000
Accrued interest payable	5,081,000		600,000
Balance
Assets
Cash and cash equivalents	645,552,000		306,603,000
Securities available-for-sale	457,194,000		489,596,000
Securities held-to-maturity	542,009,000		614,452,000
Loans (including loans held-for-sale)	3,051,136,000		3,082,941,000
Accrued interest receivable	15,919,000		15,047,000
I/O strips receivables	125,000		152,000
Liabilities
Time deposits	460,164,000		144,702,000
Other deposits	4,116,584,000		4,245,646,000
Subordinated debt	32,663,000		36,025,000
Accrued interest payable	5,081,000		600,000
Balance \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets
Cash and cash equivalents	645,552,000		306,603,000
Securities available-for-sale	396,996,000		418,474,000
Accrued interest receivable	1,743,000		1,328,000
Balance \| Significant Other Observable Inputs (Level 2)
Assets
Securities available-for-sale	60,198,000		71,122,000
Securities held-to-maturity	542,009,000		614,452,000
Loans (including loans held-for-sale)	841,000		2,456,000
Accrued interest receivable	2,668,000		1,836,000
I/O strips receivables	125,000		152,000
Liabilities
Time deposits	460,164,000		144,702,000
Other deposits	4,116,584,000		4,245,646,000
Subordinated debt	32,663,000		36,025,000
Accrued interest payable	5,081,000		600,000
Balance \| Significant Unobservable Inputs (Level 3)
Assets
Loans (including loans held-for-sale)	3,050,295,000		3,080,485,000
Accrued interest receivable	$ 11,508,000		$ 11,883,000

Equity Plan - General Disclosur

Equity Plan - General Disclosures (Details) - shares	9 Months Ended
Equity Plan - General Disclosures (Details) - shares	Sep. 30, 2023	May 25, 2023	May 21, 2020	May 20, 2020
2013 Plan
Equity Plan
Number of shares authorized for equity plan			5,000,000	3,000,000
2023 Plan
Equity Plan
Number of shares authorized for equity plan increase		600,000
Number of shares available for future grants	1,413,531
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)	73,446
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]	9 Months Ended
	Sep. 30, 2023 USD ($) $ / shares shares
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)	(54,773)
Outstanding at the end of the period (in shares)	2,676,414
Vested or expected to vest (in shares)	2,515,829
Exercisable at the end of the period (in shares)	1,915,909
Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share) \| $ / shares	$ 10.44
Granted (in dollars per share) \| $ / shares	7.41
Exercised (in dollars per share) \| $ / shares	5.76
Forfeited or expired (in dollars per share) \| $ / shares	10.57
Outstanding at the end of the period (in dollars per share) \| $ / shares	$ 10.31
Additional Information
Weighted Average Remaining Contractual Life - Outstanding at the end of the period (in years)	5 years 8 months 15 days
Weighted Average Remaining Contractual Life - Vested or expected to vest (in years)	5 years 8 months 15 days
Weighted Average Remaining Contractual Life - Exercisable at the end of the period (in years)	4 years 5 months 26 days
Aggregate Intrinsic Value - Outstanding at the end of the period (in dollars) \| $	$ 1,466,857
Aggregate Intrinsic Value - Vested or expected to vest (in dollars) \| $	1,378,845
Aggregate Intrinsic Value - Exercisable at the end of the period (in dollars) \| $	$ 1,101,078

Equity Plan - Information Relat

Equity Plan - Information Related to the Equity Plans for each of the Last Three Years (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Information Related to the Equity Plans
Cash received from option exercise	$ 997	$ 870
Employee Stock Option [Member]
Information Related to the Equity Plans
Intrinsic value of options exercised	620,013	719,946
Cash received from option exercise	996,453	869,950
Tax benefit (expense) realized from option exercises	$ (5,902)	$ 53,552
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)	9 Months Ended
	Sep. 30, 2023 USD ($)
Employee Stock Option [Member]
Unrecognized Compensation Cost
Total unrecognized compensation cost related to nonvested stock options granted	$ 1,329,000
Expected weighted-average period for recognition of compensation costs related to nonvested stock options	2 years 9 months 10 days
Restricted stock
Unrecognized Compensation Cost
Total unrecognized compensation cost related to nonvested stock options granted	$ 1,356,000
Expected weighted-average period for recognition of compensation costs related to nonvested stock options	1 year 4 months 6 days
Restricted Stock Units (RSUs)
Unrecognized Compensation Cost
Total unrecognized compensation cost related to nonvested stock options granted	$ 762,000
Expected weighted-average period for recognition of compensation costs related to nonvested stock options	2 years 7 months 2 days
PRSU
Unrecognized Compensation Cost
Total unrecognized compensation cost related to nonvested stock options granted	$ 762,000
Expected weighted-average period for recognition of compensation costs related to nonvested stock options	2 years 7 months 2 days

Equity Plan - Restricted Stock

Equity Plan - Restricted Stock Activity (Details)	9 Months Ended
Equity Plan - Restricted Stock Activity (Details)	Sep. 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)	73,446
Vested (in shares)	(141,524)
Nonvested shares at the end of the period (in shares)	185,413
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	7.53
Vested (in dollars per share) \| $ / shares	7.82
Nonvested shares at the end of the period (in dollars per share) \| $ / shares	$ 10.87
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 ($)	Sep. 30, 2023	Dec. 31, 2022	Sep. 30, 2022
Borrowing Arrangements
Loan balance	$ 3,285,461,000	$ 3,298,550,000	$ 3,216,473,000
FHLB \| Line of credit
Borrowing Arrangements
Amount outstanding	0	0
Line of credit	1,214,537,000
FHLB
Borrowing Arrangements
Securities pledged as collateral	377,931,000
Amount outstanding	0	$ 0
FHLB \| Line of credit \| FHLB of San Francisco
Borrowing Arrangements
Loan balance	1,219,962,000
Line of credit	$ 1,151,769,000

Borrowing Arrangements - Fede_2

Borrowing Arrangements - Federal Reserve Bank Borrowings (Details)	Sep. 30, 2023 USD ($)
Line of credit \| FRB
Borrowing Arrangements
Loans and securities pledged to as collateral	$ 1,666,839,000

Borrowing Arrangements - Availa

Borrowing Arrangements - Available Lines of Credit (Details) - USD ($)	Sep. 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	Sep. 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 ($)	Sep. 30, 2023	Dec. 31, 2022
Borrowing Arrangements
Amount of securities sold under agreements	$ 0	$ 0

Borrowing Arrangements - Subord

Borrowing Arrangements - Subordinated Debt (Details) - USD ($)	May 26, 2017	Sep. 30, 2023	Dec. 31, 2022	Jun. 01, 2022	May 11, 2022
Debt Instrument [Line Items]
Subordinated debt, net of issuance costs		$ 39,463,000	$ 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		39,463,000
Debt Issuance Costs		$ 537,000
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)		9 Months Ended	12 Months Ended
Capital Requirements - General Information (Details)	Mar. 27, 2020	Sep. 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	Sep. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
Total Capital (to risk-weighted assets)
Actual, Amount	$ 587,174	$ 554,810
Required For Capital Adequacy Purposes, Amount	$ 395,037	$ 393,461
Actual, Ratio (as a percent)	0.156	0.148
Required For Capital Adequacy Purposes, Ratio (as a percent)	0.105	0.105
Tier 1 Capital (to risk-weighted assets)
Actual, Amount	$ 504,872	$ 475,609
Required For Capital Adequacy Purposes, Amount	$ 319,792	$ 318,516
Actual, Ratio (as a percent)	0.134	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	$ 504,872	$ 475,609
Required For Capital Adequacy Purposes, Amount	$ 263,358	$ 262,307
Actual, Ratio (as a percent)	0.134%	0.127%
Required For Capital Adequacy Purposes, Ratio (as a percent)	0.07%	0.07%
Tier 1 Capital (to average assets)
Actual, Amount	$ 504,872	$ 475,609
Required For Capital Adequacy Purposes, Amount	$ 209,433	$ 207,852
Actual, Ratio (as a percent)	0.096	0.092
Required For Capital Adequacy Purposes, Ratio (as a percent)	0.040	0.040
HBC
Total Capital (to risk-weighted assets)
Actual, Amount	$ 565,450	$ 532,576
To Be Well Capitalized Under Regulatory Requirements, Amount	376,180	374,572
Required For Capital Adequacy Purposes, Amount	$ 394,990	$ 393,301
Actual, Ratio (as a percent)	0.150	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	$ 522,611	$ 492,725
To Be Well Capitalized Under Regulatory Requirements, Amount	300,945	299,658
Required For Capital Adequacy Purposes, Amount	$ 319,754	$ 318,387
Actual, Ratio (as a percent)	0.139	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	$ 522,611	$ 492,725
To Be Well Capitalized Under Regulatory Requirements, Amount	244,518	243,472
Required For Capital Adequacy Purposes, Amount	$ 263,327	$ 262,201
Actual, Ratio (as a percent)	0.139%	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	$ 522,611	$ 492,725
To Be Well Capitalized Under Regulatory Requirements, Amount	261,756	259,740
Required For Capital Adequacy Purposes, Amount	$ 209,405	$ 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			9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2023	Dec. 31, 2022
Cash dividend
Subordinated Debt.	$ 39,463,000			$ 39,463,000	$ 39,350,000
HBC
Cash dividend
Cash dividend available	42,085,000			42,085,000
Dividends paid to parent company	$ 8,000,000	$ 8,000,000	$ 8,000,000	$ 24,000,000

Commitments and Loss Continge_3

Commitments and Loss Contingencies - Financial Instruments with Off-Balance Sheet Risk (Details)	9 Months Ended	12 Months Ended
	Sep. 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	$ 79,631,000	$ 88,913,000
Commitments to extend credit, variable rate	1,087,834,000	1,045,706,000
Commitment to extend credit, total	$ 1,167,465,000	$ 1,134,619,000
Percentage of unused commitments to outstanding gross loans	36%	34%
Increase (decrease) to the allowance for credit losses on loans	$ 29,000
Off-balance sheet, credit loss liability increase due to offsetting increase in loss factors in CECL model	791,000	$ 820,000
Unused lines of credit and commitments to make loans
Commitments and Contingencies
Commitments to extend credit, fixed rate	73,713,000	87,348,000
Commitments to extend credit, variable rate	1,078,837,000	1,036,847,000
Commitment to extend credit, total	1,152,550,000	1,124,195,000
Standby letters of credit
Commitments and Contingencies
Commitments to extend credit, fixed rate	5,918,000	1,565,000
Commitments to extend credit, variable rate	8,997,000	8,859,000
Commitment to extend credit, total	$ 14,915,000	$ 10,424,000

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Revenue Recognition (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Disaggregation of Revenue [Line Items]
Non-interest Income In-scope of Topic 606	$ 859	$ 1,360	$ 3,503	$ 2,839
Non-interest Income Out-of-scope of Topic 606	1,357	1,421	3,553	4,500
Total noninterest income	$ 2,216	$ 2,781	$ 7,056	$ 7,339
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	$ 859	$ 1,360	$ 3,503	$ 2,839

Noninterest Expense (Details)

Noninterest Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Noninterest Expense (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Noninterest Expense
Salaries and employee benefits	$ 14,147	$ 14,119	$ 42,943	$ 41,416
Occupancy and equipment	2,301	2,415	7,123	7,129
Insurance expense	1,595	1,361	4,627	3,447
Data processing	906	562	2,593	1,894
Professional fees	717	1,230	3,265	3,601
Federal Deposit Insurance Corporation ("FDIC") assessments	688	285	1,599	1,215
Software subscriptions	682	509	1,903	1,383
Client services	682	438	1,633	1,375
Other	3,453	2,980	9,877	8,881
Total noninterest expense	$ 25,171	$ 23,899	$ 75,563	$ 70,341

Leases (Details)

Leases (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Leases (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Leases
Lessee, Operating Lease, Option to renew			true
Operating Lease Cost (Cost resulting from lease payments)	$ 1,677	$ 1,691	$ 5,087	$ 4,931
Operating Lease - Operating Cash Flows (Fixed Payments)	1,678	1,252	5,026	3,697
Operating Lease - ROU assets	$ 31,979	$ 32,943	$ 31,979	$ 32,943
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	$ 31,979	$ 32,943	$ 31,979	$ 32,943
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 1 month 6 days	6 years 10 months 9 days	6 years 1 month 6 days	6 years 10 months 9 days
Weighted Average Discount Rate - Operating Leases	4.86%	4.44%	4.86%	4.44%

Leases - Maturity Analysis (Det

Leases - Maturity Analysis (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Sep. 30, 2022
Operating Lease Payments Due
2023 remaining	$ 1,674
2024	6,580
2025	6,036
2026	5,445
2027	5,288
Thereafter	12,268
Total undiscounted cash flows	37,291
Discount on cash flows	(5,312)
Total lease liability	$ 31,979	$ 32,943

Business Segment Information -

Business Segment Information - Business Segments (Details)	9 Months Ended
Business Segment Information - Business Segments (Details)	Sep. 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						9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Operating Income
Interest income	$ 60,791			$ 50,174			$ 175,406	$ 133,636
Total interest expense	15,419			2,133			34,483	5,495
Net interest income	45,372			48,041			140,923	128,141
Provision for credit losses on loans	168			1,006			460	258
Net interest income after provision	45,204			47,035			140,463	127,883
Noninterest income	2,216			2,781			7,056	7,339
Noninterest expense	25,171			23,899			75,563	70,341
Income before income taxes	22,249			25,917			71,956	64,881
Income tax expense	6,454			7,848			20,841	19,125
Net income	15,795	$ 16,403	$ 18,917	18,069	$ 14,821	$ 12,866	51,115	45,756
Total assets	5,403,307			5,431,262			5,403,307	5,431,262	$ 5,157,580
Loans, net of deferred fees	3,285,461			3,216,473			3,285,461	3,216,473	3,298,550
Goodwill	167,631			167,631			167,631	167,631	167,631
Banking
Operating Income
Interest income	58,016			46,973			164,783	124,513
Intersegment interest allocations	397			329			1,626	887
Total interest expense	15,419			2,133			34,483	5,495
Net interest income	42,994			45,169			131,926	119,905
Provision for credit losses on loans	254			1,126			807	259
Net interest income after provision	42,740			44,043			131,119	119,646
Noninterest income	2,044			2,677			6,743	7,049
Noninterest expense	23,588			22,216			70,645	65,542
Intersegment expense allocations	109			128			435	370
Income before income taxes	21,305			24,632			67,652	61,523
Income tax expense	6,175			7,468			19,572	18,132
Net income	15,130			17,164			48,080	43,391
Total assets	5,314,922			5,355,212			5,314,922	5,355,212
Loans, net of deferred fees	3,233,379			3,155,923			3,233,379	3,155,923
Goodwill	154,587			154,587			154,587	154,587	154,587
Factoring
Operating Income
Interest income	2,775			3,201			10,623	9,123
Intersegment interest allocations	(397)			(329)			(1,626)	(887)
Net interest income	2,378			2,872			8,997	8,236
Provision for credit losses on loans	(86)			(120)			(347)	(1)
Net interest income after provision	2,464			2,992			9,344	8,237
Noninterest income	172			104			313	290
Noninterest expense	1,583			1,683			4,918	4,799
Intersegment expense allocations	(109)			(128)			(435)	(370)
Income before income taxes	944			1,285			4,304	3,358
Income tax expense	279			380			1,269	993
Net income	665			905			3,035	2,365
Total assets	88,385			76,050			88,385	76,050
Loans, net of deferred fees	52,082			60,550			52,082	60,550
Goodwill	$ 13,044			$ 13,044			$ 13,044	$ 13,044	$ 13,044

Subsequent Events (Details)

Subsequent Events (Details) - $ / shares		3 Months Ended
Subsequent Events (Details) - $ / shares	Oct. 26, 2023	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	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	$ 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						9 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
Pay vs Performance Disclosure
Net Income (Loss)	$ 15,795	$ 16,403	$ 18,917	$ 18,069	$ 14,821	$ 12,866	$ 51,115	$ 45,756

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Sep. 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