Heritage Commerce (HTBK) 10-K8 Mar 242023 FY Annual reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Dec. 31, 2023	Feb. 14, 2024	Jun. 30, 2023
Cover [Abstract]
Document Type	10-K
Document Period End Date	Dec. 31, 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		61,169,473
Entity Central Index Key	0001053352
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	FY
Amendment Flag	false
Document Annual Report	true
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
ICFR Auditor Attestation Flag	true
Entity Public Float			$ 400.2
Auditor Name	Crowe LLP
Auditor Firm ID	173
Auditor Location	Oak Brook, Illinois
Document Financial Statement Error Correction [Flag]	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Assets
Cash and due from banks	$ 41,592,000	$ 27,595,000
Other investments and interest-bearing deposits in other financial institutions	366,537,000	279,008,000
Total cash and cash equivalents	408,129,000	306,603,000
Securities available-for-sale, at fair value	442,636,000	489,596,000
Securities held-to-maturity, at amortized cost, net of allowance for credit losses of $12 and $14, respectively (fair value of $564,127 and $614,452, respectively)	650,565,000	714,990,000
Loans held-for-sale - SBA, at lower of cost or fair value, including deferred costs	2,205,000	2,456,000
Loans, net of deferred fees	3,350,378,000	3,298,550,000
Allowance for credit losses on loans	(47,958,000)	(47,512,000)
Loans, net	3,302,420,000	3,251,038,000
Federal Home Loan Bank ("FHLB"), Federal Reserve Bank ("FRB") stock and other investments, at cost	32,540,000	32,522,000
Company-owned life insurance	79,489,000	78,945,000
Premises and equipment, net	9,857,000	9,301,000
Goodwill	167,631,000	167,631,000
Other intangible assets	8,627,000	11,033,000
Accrued interest receivable and other assets	89,996,000	93,465,000
Total assets	5,194,095,000	5,157,580,000
Deposits:
Demand, noninterest-bearing	1,292,486,000	1,736,722,000
Demand, interest-bearing	914,066,000	1,196,427,000
Savings and money market	1,087,518,000	1,285,444,000
Time deposits - under $250	38,055,000	32,445,000
Time deposits - $250 and over	192,228,000	108,192,000
Insured Cash Sweep ("ICS")/Certificates of Deposit Account Registry Service ("CDARS") - interest-bearing demand, money market and time deposits	854,105,000	30,374,000
Total deposits	4,378,458,000	4,389,604,000
Subordinated debt, net of issuance costs	39,502,000	39,350,000
Accrued interest payable and other liabilities	103,234,000	96,170,000
Total liabilities	4,521,194,000	4,525,124,000
Shareholders' equity:
Preferred stock, no par value; 10,000,000 shares authorized; none issued and outstanding at December 31, 2023 and December 31, 2022
Common stock, no par value; 100,000,000 shares authorized; 61,146,835 and 60,852,723 shares issued and outstanding, respectively	506,539,000	502,923,000
Retained earnings	179,092,000	146,389,000
Accumulated other comprehensive loss	(12,730,000)	(16,856,000)
Total shareholders' equity	672,901,000	632,456,000
Total liabilities and shareholders' equity	$ 5,194,095,000	$ 5,157,580,000

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Securities held-to-maturity
Allowance for credit loss current period	$ 12	$ 14
Securities held-to-maturity, fair value	$ 564,127	$ 614,452
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	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	61,146,835	60,852,723
Common stock, shares outstanding	61,146,835	60,852,723

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	12 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Interest income:
Loans, including fees	$ 177,628	$ 153,010	$ 139,244
Securities, taxable	27,351	20,666	8,678
Securities, exempt from Federal tax	945	1,084	1,576
Other investments, interest-bearing deposits in other financial institutions and Federal funds sold	28,374	14,068	3,758
Total interest income	234,298	188,828	153,256
Interest expense:
Deposits	47,557	6,770	4,816
Short-term borrowings	1,365		1
Subordinated debt	2,152	2,178	2,314
Total interest expense	51,074	8,948	7,131
Net interest income before provision for credit losses on loans	183,224	179,880	146,125
Provision for (recapture of) credit losses on loans	749	766	(3,134)
Net interest income after provision for credit losses on loans	182,475	179,114	149,259
Noninterest income:
Service charges and fees on deposit accounts	$ 4,341	$ 4,640	$ 2,488
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
Increase in cash surrender value of life insurance	$ 2,031	$ 1,925	$ 1,838
Gain on sales of SBA loans	482	491	1,718
Servicing income	400	508	553
Termination fees	154	61	797
Gain on proceeds from company owned life insurance	125	27	675
Gain on warrants		669	11
Other	1,465	1,790	1,608
Total noninterest income	8,998	10,111	9,688
Noninterest expense:
Salaries and employee benefits	56,862	55,331	51,862
Occupancy and equipment	9,490	9,639	9,038
Professional fees	4,350	5,015	5,901
Other	30,352	24,874	26,276
Total noninterest expense	101,054	94,859	93,077
Income before income taxes	90,419	94,366	65,870
Income tax expense	25,976	27,811	18,170
Net income	$ 64,443	$ 66,555	$ 47,700
Earnings per common share:
Basic (in dollars per share)	$ 1.06	$ 1.10	$ 0.79
Diluted (in dollars per share)	$ 1.05	$ 1.09	$ 0.79

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 64,443	$ 66,555	$ 47,700
Other comprehensive income (loss):
Change in net unrealized holding gains (losses) on available-for-sale securities and I/O strips	6,148	(19,079)	(2,953)
Deferred income taxes	(1,783)	5,532	1,177
Change in net unamortized unrealized gain on securities available-for- sale that were reclassified to securities held-to-maturity			(371)
Deferred income taxes			110
Change in unrealized gains (losses) on securities and I/O strips, net of deferred income taxes	4,365	(13,547)	(2,037)
Change in net pension and other benefit plan liability adjustment	(458)	9,909	2,219
Deferred income taxes	219	(2,222)	(461)
Change in pension and other benefit plan liability, net of deferred income taxes	(239)	7,687	1,758
Other comprehensive income (loss)	4,126	(5,860)	(279)
Total comprehensive income	$ 68,569	$ 60,695	$ 47,421

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Retained Earnings	Accumulated Other Comprehensive Loss	Total
Balance at Dec. 31, 2020	$ 493,707	$ 94,899	$ (10,717)	$ 577,889
Balance (in shares) at Dec. 31, 2020	59,917,457
Increase (Decrease) in Shareholders' Equity
Net income		47,700		47,700
Other comprehensive income (loss)			(279)	(279)
Issuance of restricted stock awards, net (in shares)	152,967
Amortization of restricted stock awards, net of forfeitures and taxes	$ 1,940			1,940
Cash dividend declared		(31,270)		(31,270)
Stock option expense, net of forfeitures	579			579
Stock options exercised	$ 1,469			1,469
Stock options exercised (in shares)	269,413
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		66,555		66,555
Other comprehensive income (loss)			(5,860)	(5,860)
Issuance of restricted stock awards, net (in shares)	207,006
Amortization of restricted stock awards, net of forfeitures and taxes	$ 2,583			2,583
Cash dividend declared		(31,495)		(31,495)
Stock option expense, net of forfeitures and taxes	595			595
Stock options exercised	$ 2,050			2,050
Stock options exercised (in shares)	305,880
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		64,443		64,443
Other comprehensive income (loss)			4,126	4,126
Issuance of restricted stock awards, net (in shares)	73,446
Amortization of restricted stock awards, net of forfeitures and taxes	$ 1,404			1,404
Cash dividend declared		(31,740)		(31,740)
Restricted stock units ("RSUs") and performance-based restricted stock units ("PRSUs") expense, net of taxes	392			392
Stock option expense, net of forfeitures and taxes	600			600
Stock options exercised	$ 1,220			1,220
Stock options exercised (in shares)	220,666
Balance at Dec. 31, 2023	$ 506,539	$ 179,092	$ (12,730)	$ 672,901
Balance (in shares) at Dec. 31, 2023	61,146,835

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
Cash dividend declared per share (in dollars per share)	$ 0.52	$ 0.52	$ 0.52

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 64,443,000	$ 66,555,000	$ 47,700,000
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of premiums and accretion of discounts on securities	(4,822,000)	(953,000)	3,649,000
Gain on sale of SBA loans	(482,000)	(491,000)	(1,718,000)
Proceeds from sale of SBA loans originated for sale	8,035,000	7,689,000	18,324,000
SBA loans originated for sale	(7,302,000)	(7,767,000)	(17,274,000)
Provision for credit losses on loans	749,000	766,000	(3,134,000)
Increase in cash surrender value of life insurance	(2,031,000)	(1,925,000)	(1,838,000)
Depreciation and amortization	1,115,000	1,121,000	1,072,000
Amortization of other intangible assets	2,406,000	2,635,000	2,996,000
Stock option expense, net	600,000	595,000	579,000
RSUs and PRSUs expense	392,000
Amortization of restricted stock awards, net	1,404,000	2,583,000	1,940,000
Amortization of subordinated debt issuance costs	152,000	172,000	185,000
Gain on proceeds from company-owned life insurance	(125,000)	(27,000)	(675,000)
Effect of changes in:
Accrued interest receivable and other assets	2,411,000	978,000	6,127,000
Accrued interest payable and other liabilities	6,065,000	(2,078,000)	(1,084,000)
Net cash provided by operating activities	73,010,000	69,853,000	56,849,000
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of securities available-for-sale		(425,721,000)
Purchase of securities held-to-maturity		(146,548,000)	(474,017,000)
Maturities/paydowns/calls of securities available-for-sale	59,014,000	21,881,000	129,191,000
Maturities/paydowns/calls of securities held-to-maturity	63,376,000	88,394,000	110,823,000
Purchase of mortgage loans		(185,426,000)	(405,752,000)
Net change in loans	(52,131,000)	(21,862,000)	(60,289,000)
Changes in FHLB stock and other investments	(18,000)	(18,000)	1,018,000
Proceeds from redemption of company-owned life insurance	1,612,000	596,000	2,447,000
Purchase of premises and equipment	(1,671,000)	(783,000)	(252,000)
Net cash provided by (used in) investing activities	70,182,000	(669,487,000)	(696,831,000)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net change in deposits	(11,146,000)	(369,808,000)	844,926,000
Exercise of stock options	1,220,000	2,050,000	1,469,000
Payment of cash dividends	(31,740,000)	(31,495,000)	(31,270,000)
Redemption of subordinated debt		(40,000,000)
Issuance of subordinated debt, net of issuance costs		39,274,000
Net cash (used in) provided by financing activities	(41,666,000)	(399,979,000)	815,125,000
Net increase (decrease) in cash and cash equivalents	101,526,000	(999,613,000)	175,143,000
Cash and cash equivalents, beginning of period	306,603,000	1,306,216,000	1,131,073,000
Cash and cash equivalents, end of period	408,129,000	306,603,000	1,306,216,000
Supplemental disclosures of cash flow information:
Interest paid	46,834,000	8,654,000	7,014,000
Income taxes paid, net	28,340,000	25,175,000	15,372,000
Supplemental schedule of non-cash activity:
Recording of right of use assets in exchange for lease obligations	$ 541,000	2,736,000	$ 2,977,000
Transfer of loans held-for-sale to loan portfolio		$ 480,000

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
Summary of Significant Accounting Policies	Dec. 31, 2023
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	1) Summary of Significant Accounting Policies Description of Business and Basis of Presentation Heritage Commerce Corp (“HCC”) operates as a registered bank holding company for its wholly-owned subsidiary Heritage Bank of Commerce (“HBC” or the “Bank”), collectively referred to as the “Company”. HBC was incorporated on November 23, 1993 and commenced operations on June 8, 1994. HBC is a California state chartered bank which offers a full range of commercial and personal banking services to residents and the business/professional community 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. Bay View Funding’s primary business operation is purchasing and collecting factored receivables. Factored receivables are receivables that have been transferred by the originating organization and typically have not been subject to previous collection efforts. In a factoring transaction Bay View Funding directly purchases the receivables generated by its clients at a discount to their face value. The transactions are structured to provide the clients with immediate working capital when there is a mismatch between payments to the client for a good and service and the payment of operating costs incurred to provide such good or service. The consolidated financial statements are prepared in accordance with accounting policies generally accepted in the United States of America and general practices in the banking industry. The financial statements include the accounts of the Company. All inter-company accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents Cash and cash equivalents include cash on hand, amounts due from banks, amounts held at the Federal Reserve Bank, and Federal funds sold. In response to the COVID-19 pandemic, the Federal Reserve lowered the reserve requirement ratios to 0% effective March 26, 2020, and therefore, the Bank had no required reserve balance at December 31, 2023 and 2022. one Cash Flows Net cash flows are reported for customer loan and deposit transactions, notes payable, repurchase agreements and other short-term borrowings. Securities The Company classifies its securities as either available-for-sale or held-to-maturity at the time of purchase. Debt securities are classified as held-to-maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Debt securities not classified as held-to-maturity are classified as available-for-sale. Securities available-for-sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of taxes. Interest income includes amortization of purchase premiums or discounts. Premiums and discounts are amortized, or accreted, over the life of the related security, or the earliest call date for callable securities purchased at a premium, as an adjustment to income using a method that approximates the interest method. Realized gains and losses are recorded on the trade date and determined using the specific identification method for the cost of securities sold. Allowance for Credit Losses – Available-for-sale Securities Changes in the allowance for credit losses are recorded as a provision (or reversal of) credit loss expense. Losses are charged against the allowance when management believes the uncollectibility of an available-for-sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Allowance for Credit Losses – Held-to-Maturity Securities Management measures expected credit losses on held-to-maturity debt securities on a collective basis by major security type and bond rating. The estimate of expected credit losses considers historical loss information that is adjusted for current conditions and reasonable and supportable forecasts. Management classifies the held-to-maturity portfolio in the following major security types: Agency mortgage-backed and municipal securities. All the mortgage-backed securities held by the Company are issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies, and have a long history of no credit losses. Other securities are comprised primarily of tax exempt municipal securities. At December 31, 2023, all of these securities are rated A-Aaa (defined as investment grade). The issuers in these securities are primarily municipal entities and school districts. Loan Sales and Servicing The Company holds for sale the conditionally guaranteed portion of certain loans guaranteed by the Small Business Administration or the U.S. Department of Agriculture (collectively referred to as “SBA loans”). These loans are carried at the lower of aggregate cost or fair value. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings. Gains or losses on SBA loans held-for-sale are recognized upon completion of the sale, based on the difference between the selling price and the carrying value of the related loan sold. SBA loans are sold with servicing retained. Servicing assets recognized separately upon the sale of SBA loans consist of servicing rights and, for loans sold prior to 2009, interest-only strip receivables (“I/O strips”). The Company accounts for the sale and servicing of SBA loans based on the financial and servicing assets it controls and liabilities it has incurred, reversing recognition of financial assets when control has been surrendered, and reversing recognition of liabilities when extinguished. Servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sale of loans. Servicing rights are amortized in proportion to and over the period of net servicing income and are assessed for impairment on an ongoing basis. Impairment is determined by stratifying the servicing rights based on interest rates and terms. Any servicing assets in excess of the contractually specified servicing fees are reclassified at fair value as an I/O strip receivable and treated like an available for sale security. Fair value is determined using prices for similar assets with similar characteristics, when available, or based upon discounted cash flows using market-based assumptions. Impairment is recognized through a valuation allowance. The servicing rights, net of any required valuation allowance, and I/O strip receivable are included in other assets on the consolidated balance sheets. Servicing income, net of amortization of servicing rights, is recognized as noninterest income. The initial fair value of I/O strip receivables is amortized against interest income on loans. Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at the principal amount outstanding, net of deferred loan origination fees and costs on originated loans, or unamortized premiums or discounts on purchased or acquired loans, and an allowance for credit losses on loans. Accrued interest receivable is excluded from the estimate of credit losses. Interest on loans is accrued on the unpaid principal balance and is credited to income using the effective yield interest method. Interest on purchased or acquired loans and the accretion (amortization) of the related purchase discount (premium) is also credited to income using the effective yield interest method. A loan portfolio segment is defined as the level at which the Company uses a systematic methodology to determine the allowance for credit losses on loans. A loan portfolio class is defined as a group of loans having similar risk characteristics and methods for monitoring and assessing risk. For all loan classes, when a loan is classified as nonaccrual, the accrual of interest is discontinued, any accrued and unpaid interest is reversed, and the amortization of deferred loan fees and costs is discontinued. For all loan classes, loans are classified as nonaccrual when the payment of principal or interest is 90 days past due, unless the loan is well secured and in the process of collection. Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for credit loss and individually evaluated loans. In certain circumstances, loans that are under 90 days past due may also be classified as nonaccrual. Any interest or principal payments received on nonaccrual loans are applied toward reduction of principal. Nonaccrual loans generally are not returned to performing status until the obligation is brought current, the loan has performed in accordance with the contract terms for a reasonable period of time, and the ultimate collectability of the contractual principal and interest is no longer in doubt. Non-refundable loan fees and direct origination costs are deferred and recognized over the expected lives of the related loans using the effective yield interest method. Allowance for Credit Losses on Loans On January 1, 2023, the Company adopted the guidance of Financial Accounting Standards Board (“FASB”) 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 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 adoption of the new guidance did not have a material impact the Company’s consolidated financial statements. 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 $426,000 of Small Business Administration (“SBA”) Paycheck Protection Program loans and $57,458,000 of Bay View Funding factored receivables at December 31, 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 Commitments and Related Financial Instruments Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. The notional amount of these commitments is not reflected in the consolidated financial statement until they are funded. The Company maintains an allowance for credit losses on unfunded commercial lending commitments and letters of credit to provide for the risk of loss inherent in these arrangements. The allowance is computed using a methodology similar to that used to determine the allowance for credit losses for loans, modified to take into account the probability of a drawdown on the commitment. The allowance for credit losses on unfunded loan commitments is classified as a liability account on the balance sheet and is adjusted as a provision for credit loss expense included in other noninterest expense. Federal Home Loan Bank and Federal Reserve Bank Stock As a member of the Federal Home Loan Bank (“FHLB”) system, the Bank is required to own common stock in the FHLB based on the Bank’s level of borrowings and outstanding FHLB advances. FHLB stock is carried at cost and classified as a restricted security. Both cash and stock dividends from the FHLB are reported as income. As a member of the Federal Reserve Bank (“FRB”) of San Francisco, the Bank is required to own stock in the FRB of San Francisco based on a specified ratio relative to our capital. FRB stock is carried at cost and may be sold back to the FRB at its carrying value. Cash dividends received from the FRB are reported as income. Company-Owned Life Insurance and Split-Dollar Life Insurance Benefit Plan The Company has purchased life insurance policies on certain directors and officers. Company-owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for charges or other amounts due that are probable at settlement. The purchased insurance is subject to split-dollar insurance agreements with the insured participants, which continues after the participant’s employment and retirement. Accounting guidance requires that a liability be recorded primarily over the participant’s service period when a split-dollar life insurance agreement continues after a participant’s employment or retirement. The required accrued liability is based on either the post-employment benefit cost for the continuing life insurance or the future death benefit depending on the contractual terms of the underlying agreement. Premises and Equipment Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation and amortization are computed on the straight-line basis over the lesser of the respective lease terms or estimated useful lives. The Company owns one building which is being depreciated over 40 years. Furniture, equipment and improvements depreciated three Operating Lease Right of Use Assets and Liabilities The Company determines if a lease is present at the inception of an agreement. Operating leases are capitalized at commencement and are discounted using the Company’s FHLB borrowing rate for a similar term borrowing unless the lease defines an implicit rate within the contract. The operating lease right of use assets represent the Company’s right to use an underlying asset for the lease term, and the operating lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease right of use assets and operating lease liabilities are recognized on the lease commencement date based on the present value of lease payments over the lease term. No significant judgments or assumptions were involved in developing the estimated operating lease liabilities as the Company’s operating lease liabilities largely represent future rental expenses associated with operating leases and the borrowing rates are based on publicly available interest rates. Business Combinations The Company accounts for acquisitions of businesses using the acquisition method of accounting. Under the acquisition method, assets acquired and liabilities assumed are recorded at their estimated fair values at the date of acquisition. Management utilizes various valuation techniques including discounted cash flow analyses to determine these fair values. Any excess of the purchase price over amounts allocated to the acquired assets, including identifiable intangible assets, and liabilities assumed is recorded as goodwill. Goodwill and Other Intangible Assets Goodwill resulting from business combinations represents the excess of the purchase price over the fair value of the net assets of businesses acquired. Goodwill is assessed at least annually for impairment and any such impairment is recognized in the period identified. The Company’s annual goodwill impairment testing date is November 30. Other intangible assets consist of a core deposit intangible, a below market lease, an above market lease liability, a customer relationship and brokered relationship intangible assets. They are initially measured at fair value and then are amortized over their estimated useful lives. The core deposits intangible assets from the acquisitions are being amortized on an accelerated method over ten years. The below market value lease intangible assets are being amortized on the straight line method over three years. The above market lease adjustment is being amortized on the straight line method over 60 months. The customer relationship and brokered relationship intangible assets are being amortized over ten years. Foreclosed Assets Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. If fair value declines subsequent to foreclosure, a valuation allowance is recorded through operations. Operating costs after acquisition are expensed. Gains and losses on disposition are included in noninterest expense. There were no foreclosed assets at December 31, 2023 and 2022. Retirement Plans Expenses for the Company’s non-qualified, unfunded defined benefits plan consists of service and interest cost and amortization of gains and losses not immediately recognized. Employee 401(k) and profit sharing plan expense is the amount of matching contributions. Deferred compensation and supplemental retirement plan expense allocates the benefits over years of service. Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. The Company’s accounting policy for legal costs related to loss contingencies is to accrue for the probable fees that can be reasonably estimated. The Company’s accounting policy for uncertain recoveries is to recognize the anticipated recovery when realization is deemed probable. Income Taxes The Company files consolidated Federal and combined and separate state income tax returns. Income tax expense is the total of the current year income tax payable or refunded, the change in deferred tax assets and liabilities, and low income housing investment losses, net of tax benefits received. Some items of income and expense are recognized in different years for tax purposes when applying generally accepted accounting principles, leading to timing differences between the Company’s actual 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. Realization of the Company’s deferred tax assets is primarily dependent upon the Company generating sufficient taxable income to obtain benefit from the reversal of net deductible temporary differences and utilization of tax credit carryforwards for Federal and California state income tax purposes. The amount of deferred tax assets considered realizable is subject to adjustment in future periods based on estimates of future taxable income. Under generally accepted accounting principles, a valuation allowance is required to be recognized 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. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and penalties related to uncertain tax positions as income tax expense. Stock-Based Compensation Compensation cost is recognized for stock options and restricted stock awards issued to employees and directors, based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards, RSUs and PRSUs. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. Compensation cost recognized reflects estimated forfeitures, adjusted as necessary for actual forfeitures. Comprehensive Income (Loss) Total comprehensive income (loss) consists of net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to gains and losses that are included in comprehensive income (loss) but are excluded from net income (loss) because they have been recorded directly in equity, net of tax, under the provisions of certain accounting guidance. The Company’s sources of other comprehensive income (loss) are unrealized gains and losses on securities available-for-sale, and I/O strips, which are treated like available-for-sale securities, and the liabilities related to the Company’s defined benefit pension plan and the split-dollar life insurance benefit plan. Reclassification adjustments result from gains or losses that were realized and included in net income (loss) of the current period that also had been included in other comprehensive income as unrealized holding gains and losses. Segment Reporting HBC is a commercial bank serving customers located in Alameda, Contra Costa, Marin, San Benito, San Francisco, San Mateo, and Santa Clara counties of California. Bay View Funding provides business essential working capital factoring financing to various industries throughout the United States. No customer accounts for more than 10 percent of revenue for HBC or the Company. With the previous acquisition of Bay View Funding, the Company has two reportable segments consisting of Banking and Factoring. Reclassifications Certain items in the consolidated financial statements for the years ended December 31, 2022 and 2021 were reclassified to conform to the 2023 presentation. These reclassifications did not affect previously reported net income or shareholders’ equity. 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 no - - . - , ,

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (AOCI)	12 Months Ended
Accumulated Other Comprehensive Income (AOCI)	Dec. 31, 2023
Accumulated Other Comprehensive Income (Loss) ("AOCI")
Accumulated Other Comprehensive Income (Loss) ("AOCI")	2) Accumulated Other Comprehensive Income (“AOCI”) The following table reflects the changes in AOCI by component for the periods indicated: Year Ended December 31, 2023 and 2022 Unrealized Gains/(Losses) on Available- Defined for-Sale Benefit Securities Pension and I/O Plan Strips Items (1) Total (Dollars in thousands) Beginning balance January 1, 2023, net of taxes $ (11,394) $ (5,462) $ (16,856) Other comprehensive income (loss) before reclassification, net of taxes 4,365 (141) 4,224 Amounts reclassified from other comprehensive income (loss), net of taxes — (98) (98) Net current period other comprehensive income (loss), net of taxes 4,365 (239) 4,126 Ending balance December 31, 2023, net of taxes $ (7,029) $ (5,701) $ (12,730) Beginning balance January 1, 2022, net of taxes $ 2,153 $ (13,149) $ (10,996) Other comprehensive income (loss) before reclassification, net of taxes (13,547) 7,395 (6,152) Amounts reclassified from other comprehensive income (loss), net of taxes — 292 292 Net current period other comprehensive income (loss), net of taxes (13,547) 7,687 (5,860) Ending balance December 31, 2022, net of taxes $ (11,394) $ (5,462) $ (16,856) (1) This AOCI component is included in the computation of net periodic benefit cost (see Note 13—Benefit Plans) and includes split-dollar life insurance benefit plan. Amounts Reclassified from AOCI Year Ended December 31, Affected Line Item Where Details About AOCI Components 2023 2022 2021 Net Income is Presented (Dollars in thousands) Amortization of unrealized gain on securities available-for-sale that were reclassified to securities held-to-maturity $ — $ — $ 371 Interest income on taxable securities — — (110) Income tax expense — — 261 Net of tax Amortization of defined benefit pension plan items (1) Prior transition obligation and actuarial losses (2) 191 41 4 Prior service cost and actuarial losses (3) (53) (455) (643) 138 (414) (639) Other noninterest expense (40) 122 189 Income tax benefit 98 (292) (450) Net of tax Total reclassification from AOCI for the period $ 98 $ (292) $ (189) (1) This AOCI component is included in the computation of net periodic benefit cost (see Note 13 — 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	12 Months Ended
Securities	Dec. 31, 2023
Securities
Securities	3) Securities The amortized cost and estimated fair value of securities at year-end were as follows: Gross Gross Allowance Estimated Amortized Unrealized Unrealized for Credit Fair December 31, 2023 Cost Gains (Losses) Losses Value (Dollars in thousands) Securities available-for-sale: U.S. Treasury $ 387,990 $ — $ (5,621) $ — $ 382,369 Agency mortgage-backed securities 64,580 — (4,313) — 60,267 Total $ 452,570 $ — $ (9,934) $ — $ 442,636 Gross Gross Estimated Allowance Amortized Unrecognized Unrecognized Fair for Credit December 31, 2023 Cost Gains (Losses) Value Losses (Dollars in thousands) Securities held-to-maturity: Agency mortgage-backed securities $ 618,374 $ 282 $ (86,011) $ 532,645 $ — Municipals - exempt from Federal tax 32,203 3 (724) 31,482 (12) Total $ 650,577 $ 285 $ (86,735) $ 564,127 $ (12) 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 at year end, for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that individual securities have been in an unrealized loss position are as follows: Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2023 Value (Losses) Value (Losses) Value (Losses) (Dollars in thousands) Securities available-for-sale: U.S. Treasury $ 4,926 $ (40) $ 377,443 $ (5,581) $ 382,369 $ (5,621) Agency mortgage-backed securities — — 60,267 (4,313) 60,267 (4,313) Total $ 4,926 $ (40) $ 437,710 $ (9,894) $ 442,636 $ (9,934) Securities held-to-maturity: Agency mortgage-backed securities $ — $ — $ 520,615 $ (86,011) $ 520,615 $ (86,011) Municipals — exempt from Federal tax 9,790 (176) 13,151 (548) 22,941 (724) Total $ 9,790 $ (176) $ 533,766 $ (86,559) $ 543,556 $ (86,735) 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 December 31, 2023, the Company held 437 securities (164 available-for-sale and 273 held-to-maturity), of which 406 had fair values below amortized cost. The unrealized losses were due to higher interest rates at period end compared to when the securities were purchased. The issuers are of high credit quality and all principal amounts are expected to be paid when securities mature. The fair value is expected to recover as the securities approach their maturity date and/or market rates decline. The Company does not believe that it is more likely than not that the Company will be required to sell a security in an unrealized loss position prior to recovery in value. The amortized cost and fair value of debt securities as of December 31, 2023, by contractual maturity, are shown below. The expected maturities will differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment 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 $ 19,953 $ 19,920 Due after three months through one year 193,476 191,662 Due after one through five years 174,561 170,787 Agency mortgage-backed securities 64,580 60,267 Total $ 452,570 $ 442,636 Held-to-maturity Amortized Estimated Cost (1) Fair Value (Dollars in thousands) Due three months or less $ 400 $ 400 Due after three months through one year 665 665 Due after one through five years 7,271 7,157 Due after five through ten years 23,867 23,260 Agency mortgage-backed securities 618,374 532,645 Total $ 650,577 $ 564,127 Securities with amortized cost of $1,041,608,000 and $66,272,000 as of December 31, 2023 and 2022 were pledged to secure public deposits and for other purposes as required or permitted by law or contract. The table below presents a roll-forward by major security type for the year ended December 31, 2023 of the allowance for credit losses on debt securities held-to-maturity held at period end: Municipals (Dollars in thousands) Beginning balance January 1, 2023 $ 14 Recapture of credit losses (2) Ending balance December 31, 2023 $ 12 For the year ended December 31, 2023, there was a reduction of $2,000 to the allowance for credit losses on the Company’s held-to-maturity municipal investment securities portfolio. This reduction was the result of a reduction in municipal securities amortized balances resulting from regular payments.

Loans and Allowance for Credit

Loans and Allowance for Credit Losses on Loans	12 Months Ended
Loans and Allowance for Credit Losses on Loans	Dec. 31, 2023
Loans and Allowance for Credit Losses on Loans
Loans and Allowance for Credit Losses on Loans	4) Loans and Allowance for Credit Losses on Loans The allowance for credit losses on loans was calculated by pooling loans of similar credit risk characteristics and credit monitoring procedures. The loan portfolio is classified into eight segments of loans - commercial, commercial real estate – owner occupied, commercial real estate – non-owner occupied, land and construction, home equity, multifamily, residential mortgage and consumer and other. See Note 1 – Summary of Significant Accounting Polices - Allowance for Credit Losses on Loans Loans by portfolio segment and the allowance for credit losses on loans were as follows for the periods indicated: December 31, December 31, 2023 2022 (Dollars in thousands) Loans held-for-investment: Commercial $ 463,778 $ 533,915 Real estate: CRE - owner occupied 583,253 614,663 CRE - non-owner occupied 1,256,590 1,066,368 Land and construction 140,513 163,577 Home equity 119,125 120,724 Multifamily 269,734 244,882 Residential mortgages 496,961 537,905 Consumer and other 20,919 17,033 Loans 3,350,873 3,299,067 Deferred loan fees, net (495) (517) Loans, net of deferred fees 3,350,378 3,298,550 Allowance for credit losses on loans (47,958) (47,512) Loans, net $ 3,302,420 $ 3,251,038 Changes in the allowance for credit losses on loans were as follows: Year Ended December 31, 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 (750) — — — (246) — — (15) (1,011) Recoveries 346 11 — — 351 — — — 708 Net (charge-offs) recoveries (404) 11 — — 105 — — (15) (303) Provision for (recapture of) credit losses on loans (360) (641) 3,188 (589) (127) 1,687 (2,482) 73 749 End of period balance $ 5,853 $ 5,121 $ 25,323 $ 2,352 $ 644 $ 5,053 $ 3,425 $ 187 $ 47,958 Year Ended December 31, 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 (434) — — — — — — — (434) Recoveries 427 15 — — 105 — — 3,343 3,890 Net (charge-offs) recoveries (7) 15 — — 105 — — 3,343 3,456 Provision for (recapture of) credit losses on loans (1,790) (2,218) 5,010 1,110 (303) 570 1,775 (3,388) 766 End of period balance $ 6,617 $ 5,751 $ 22,135 $ 2,941 $ 666 $ 3,366 $ 5,907 $ 129 $ 47,512 Year Ended December 31, 2021 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 $ 11,587 $ 8,560 $ 16,416 $ 2,509 $ 1,297 $ 2,804 $ 943 $ 284 $ 44,400 Charge-offs (520) — — — — — — — (520) Recoveries 1,354 16 — 884 93 — — 197 2,544 Net (charge-offs) recoveries 834 16 — 884 93 — — 197 2,024 Provision for (recapture of) credit losses on loans (4,007) (622) 709 (1,562) (526) (8) 3,189 (307) (3,134) End of period balance $ 8,414 $ 7,954 $ 17,125 $ 1,831 $ 864 $ 2,796 $ 4,132 $ 174 $ 43,290 The following table presents the amortized cost basis of nonaccrual loans and loans past due over 90 days and still accruing at the periods indicated: December 31, 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 $ 946 $ 290 $ 889 $ 2,125 Real estate: CRE - Owner Occupied — — — — CRE - Non-Owner Occupied — — — — Land and construction 4,661 — — 4,661 Home equity 142 — — 142 Residential mortgages 779 — — 779 Total $ 6,528 $ 290 $ 889 $ 7,707 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 presents the aging of past due loans by class for the periods indicated: December 31, 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 $ 6,688 $ 2,030 $ 1,264 $ 9,982 $ 453,796 $ 463,778 Real estate: CRE - Owner Occupied — — — — 583,253 583,253 CRE - Non-Owner Occupied 1,289 — — 1,289 1,255,301 1,256,590 Land and construction 955 — 3,706 4,661 135,852 140,513 Home equity — — 142 142 118,983 119,125 Multifamily — — — — 269,734 269,734 Residential mortgages 3,794 510 779 5,083 491,878 496,961 Consumer and other — — — — 20,919 20,919 Total $ 12,726 $ 2,540 $ 5,891 $ 21,157 $ 3,329,716 $ 3,350,873 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 $21,157,000 and $17,066,000 at December 31, 2023 and December 31, 2022, respectively, of which $6,100,000 and $479,000 were on nonaccrual. At December 31, 2023, there were also $718,000 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 resumes recognizing interest income only as cash interest payments are received and it has been determined the collection of all outstanding principal is not in doubt. Credit Quality Indicators Concentrations of credit risk arise when a number of customers are engaged in similar business activities, or activities in the same geographic region, or have similar features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic conditions. The Company’s loan portfolio is concentrated in commercial (primarily manufacturing, wholesale, and service) and real estate lending, with the remaining balance in consumer loans. While no specific industry concentration is considered significant, the Company’s lending operations are located in the Company’s market areas that are dependent on the technology and real estate industries and their supporting companies. Thus, the Company’s borrowers could be adversely impacted by a downturn in these sectors of the economy which could reduce the demand for loans and adversely impact the borrowers’ ability to repay their loans. The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, and other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis is performed on a quarterly basis. Nonclassified loans generally include those loans that are expected to be repaid in accordance with their contractual loan terms. Loans categorized as special mention have potential weaknesses that may, if not checked or corrected, weaken the credit or inadequately protect the Company’s position at some future date. These loans pose elevated risk, but their weaknesses do not yet justify a substandard classification. Classified loans are those loans that are assigned a substandard, substandard-nonaccrual, or doubtful risk rating using the following definitions: Special Mention. Substandard. Substandard-Nonaccrual. 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. Loss. 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 December 31, 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 December 31, 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, and plus any loan purchase premiums. The loan categories are based on the loan segmentation in the Company's CECL reserve methodology based on loan purpose and type. Revolving Loans Term Loans Amortized Cost Basis by Originated Period as of December 31, 2023 Amortized 2023 2022 2021 2020 2019 Prior Periods Cost Basis Total (Dollars in thousands) Commercial: Pass $ 99,387 $ 25,250 $ 19,732 $ 14,929 $ 11,893 $ 22,134 $ 258,461 $ 451,786 Special Mention 2,107 1,092 41 — 133 1,134 467 4,974 Substandard 4 1,516 — 100 185 3,835 142 5,782 Substandard-Nonaccrual — — 349 — 116 771 — 1,236 Total 101,498 27,858 20,122 15,029 12,327 27,874 259,070 463,778 CRE - Owner Occupied: Pass 32,993 86,688 110,613 68,184 52,885 214,729 10,302 576,394 Special Mention — 250 3,241 462 — 1,802 — 5,755 Substandard — — — — 1,100 4 — 1,104 Substandard-Nonaccrual — — — — — — — — Total 32,993 86,938 113,854 68,646 53,985 216,535 10,302 583,253 CRE - Non-Owner Occupied: Pass 225,505 243,080 267,870 28,315 92,648 370,552 3,199 1,231,169 Special Mention — — — — 7,493 10,040 — 17,533 Substandard — — — — — 7,614 274 7,888 Substandard-Nonaccrual — — — — — — — — Total 225,505 243,080 267,870 28,315 100,141 388,206 3,473 1,256,590 Land and construction: Pass 40,142 52,862 27,419 9,273 1,864 — — 131,560 Special Mention 2,163 — — — — — — 2,163 Substandard 2,129 — — — — — — 2,129 Substandard-Nonaccrual — — 3,706 955 — — — 4,661 Total 44,434 52,862 31,125 10,228 1,864 — — 140,513 Home equity: Pass — — — — — 1,463 111,250 112,713 Special Mention — — — — — — 2,110 2,110 Substandard — — — — — — 4,160 4,160 Substandard-Nonaccrual — — — — — — 142 142 Total — — — — — 1,463 117,662 119,125 Multifamily: Pass 47,089 41,112 55,557 5,394 42,129 75,890 355 267,526 Special Mention — — — — — — — — Substandard — — — — — 2,208 — 2,208 Substandard-Nonaccrual — — — — — — — — Total 47,089 41,112 55,557 5,394 42,129 78,098 355 269,734 Residential mortgage: Pass 1,684 187,417 268,617 1,037 6,861 28,892 — 494,508 Special Mention — — — — — — — — Substandard — 973 — — — 701 — 1,674 Substandard-Nonaccrual — 779 — — — — — 779 Total 1,684 189,169 268,617 1,037 6,861 29,593 — 496,961 Consumer and other: Pass 2,332 1,376 3 — — 2,089 14,961 20,761 Special Mention — — 62 — — 96 — 158 Substandard — — — — — — — — Substandard-Nonaccrual — — — — — — — — Total 2,332 1,376 65 — — 2,185 14,961 20,919 Total loans $ 455,535 $ 642,395 $ 757,210 $ 128,649 $ 217,307 $ 743,954 $ 405,823 $ 3,350,873 Risk Grades: Pass $ 449,132 $ 637,785 $ 749,811 $ 127,132 $ 208,280 $ 715,749 $ 398,528 $ 3,286,417 Special Mention 4,270 1,342 3,344 462 7,626 13,072 2,577 32,693 Substandard 2,133 2,489 — 100 1,285 14,362 4,576 24,945 Substandard-Nonaccrual — 779 4,055 955 116 771 142 6,818 Grand Total $ 455,535 $ 642,395 $ 757,210 $ 128,649 $ 217,307 $ 743,954 $ 405,823 $ 3,350,873 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 table presents the gross charge-offs by class of loans and year of origination for the year ended December 31, 2023: Gross Charge-offs by Originated Period for the Year Ended December 31, 2023 Revolving 2023 2022 2021 2020 2019 Prior Periods Loans Total (Dollars in thousands) Commercial $ 35 $ 95 $ — $ — $ 339 $ 281 $ — $ 750 Real estate: CRE - Owner Occupied — — — — — — — — CRE - Non-Owner Occupied — — — — — — — — Land and construction — — — — — — — — Home equity — — — — — — 246 246 Multifamily — — — — — — — — Residential mortgages — — — — — — — — Consumer and other — — — — 15 — — 15 Total $ 35 $ 95 $ — $ — $ 354 $ 281 $ 246 $ 1,011 The amortized cost basis of collateral-dependent loans at December 31, 2023 and December 31, 2022 was $290,000 and $324,000, respectively, and were secured by business assets. When management determines that foreclosures are probable, expected credit losses for collateral-dependent loans are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. For loans which foreclosure is not probable, but for which repayment is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty, management has elected the practical expedient under ASC 326 to estimate expected credit losses based on the fair value of collateral, adjusted for selling costs as appropriate. The class of loan represents the primary collateral type associated with the loan. Significant quarter over quarter changes are reflective of changes in nonaccrual status and not necessarily associated with credit quality indicators like appraisal value. Loan Modifications Occasionally, the Company modifies loans to borrowers experiencing financial difficulty by providing principal forgiveness, term extension, payment delay, or interest reduction. When principal forgiveness is provided, the amount of forgiveness is charged-off against the allowance for credit losses. In some cases, the Company provides multiple types of concessions on one loan. Typically, one type of concession, such as a term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession, such as principal forgiveness, may be granted. For the loans included in the “combination” columns below, multiple types of modifications have been made on the same loan within the current reporting period. The combination is at least two of the following: a term extension, principal forgiveness, payment delay, and/or interest rate reduction. The following tables present the amortized cost basis of loans at December 31, 2023 that were both experiencing financial difficulty and modified through the year ended September 30, 2023, by segment and type of modification. The percentage of the amortized cost basis of the loans that were modified to borrowers experiencing financial difficulty as compared to the amortized cost basis of each class of financing receivable is also presented below. Year Ended December 31, 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 $ — $ 63 $ — $ — $ — $ 3 0.01 % Total $ — $ 63 $ — $ — $ — $ 3 0.01 % The Company has committed to lend no additional amounts to the borrowers included in the previous table. The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following tables present the performance of such loans that have been modified for the periods indicated. Year Ended December 31, 2023 30 - 59 60 - 89 90 Days or Days Days Greater Total Past Due Past Due Past Due Past Due (Dollars in thousands) Commercial $ 45 $ 1 $ — $ 46 Total $ 45 $ 1 $ — $ 46 The following tables presents the financial effect of the loan modification presented above to borrowers experiencing financial difficulty for the year ended December 31, 2023: Year Ended December 31, 2023 Weighted Weighted Average Average Interest Term Principal Rate Extension Forgiveness Reduction (Months) (Dollars in thousands) Commercial $ 7 0.25 % 14 Total $ 7 0.25 % 14 There were no loans modified in the last twelve months that had a payment default.

Loan Servicing

Loan Servicing	12 Months Ended
Loan Servicing	Dec. 31, 2023
Loan Servicing
Loan Servicing	5) Loan Servicing At December 31, 2023, 2022, and 2021, the Company serviced SBA loans sold to the secondary market of approximately $55,845,000, $64,819,000, and $73,256,000, respectively. Servicing assets represent the servicing spread generated from the sold guaranteed portions of SBA loans. The weighted average servicing rate for all loans serviced was 1.09%, 1.10%, and 1.11% at December 31, 2023, 2022, and 2021, respectively. Servicing rights are included in “accrued interest receivable and other assets” on the consolidated balance sheets. Activity for loan servicing rights follows: 2023 2022 2021 (Dollars in thousands) Beginning of year balance $ 549 $ 655 $ 531 Additions 126 124 384 Amortization (260) (230) (260) End of year balance $ 415 $ 549 $ 655 There was no valuation allowance for servicing rights at December 31, 2023, 2022, and 2021, because the estimated fair value of the servicing rights was greater than the carrying value. The estimated fair value of loan servicing rights was $827,000, $813,000, and $1,101,000, at December 31, 2023, 2022, and 2021, respectively. The fair value of servicing rights at December 31, 2023, was estimated using a weighted average constant prepayment rate (“CPR”) assumption of 17.18%, and a weighted average discount rate assumption of 16.59%. The fair value of servicing rights at December 31, 2022, was estimated using a weighted average CPR assumption of 15.12%, and a weighted average discount rate assumption of 20.75%. The fair value of servicing rights at December 31, 2021, was estimated using a weighted average CPR assumption of 13.40%, and a weighted average discount rate assumption of 13.88%. The weighted average discount rate and CPR assumptions used to estimate the fair value of the I/O strip receivables are the same as for the servicing rights. Management reviews the key economic assumptions used to estimate the fair value of I/O strip receivables on a quarterly basis. The fair value of the I/O strip can be adversely impacted by a significant increase in either the prepayment speed of the portfolio or the discount rate. I/O strip receivables are included in “accrued interest receivable and other assets” on the consolidated balance sheets. Activity for I/O strip receivables follows: 2023 2022 2021 (Dollars in thousands) Beginning of year balance $ 152 $ 221 $ 305 Unrealized loss (35) (69) (84) End of year balance $ 117 $ 152 $ 221

Premises and Equipment

Premises and Equipment	12 Months Ended
Premises and Equipment	Dec. 31, 2023
Premises and Equipment
Premises and Equipment	6) Premises and Equipment Premises and equipment at year-end were as follows: 2023 2022 (Dollars in thousands) Building $ 3,637 $ 3,508 Land 2,900 2,900 Furniture and equipment 14,347 13,812 Leasehold improvements 6,767 5,597 27,651 25,817 Accumulated depreciation and amortization (17,794) (16,516) Premises and equipment, net $ 9,857 $ 9,301 Depreciation and amortization expense was $1,115,000, $1,121,000, and $1,072,000, in 2023, 2022, and 2021, respectively.

Leases

Leases	12 Months Ended
Leases	Dec. 31, 2023
Leases
Leases	7) Leases As of December 31, 2023 and December 31, 2022, operating lease right-of-use (“ROU”) assets, included in other assets and lease liabilities liabilities The following table presents the quantitative information for the Company’s leases: Year Ended December 31, 2023 2022 Operating Lease Cost (Cost resulting from lease payments) $ 6,763 $ 6,625 Operating Lease - Operating Cash Flows (Fixed Payments) $ 6,701 $ 4,948 Operating Lease - ROU assets $ 31,674 $ 33,031 Operating Lease - Liabilities $ 31,674 $ 33,031 Weighted Average Lease Term - Operating Leases 5.88 years 6.60 years Weighted Average Discount Rate - Operating Leases 4.98% 4.49% The following maturity analysis shows the undiscounted cash flows due on the Company’s operating lease liabilities: (Dollars in thousands) 2024 $ 6,661 2025 6,278 2026 5,698 2027 5,552 2028 4,971 Thereafter 7,532 Total undiscounted cash flows 36,692 Discount on cash flows (5,018) Total lease liability $ 31,674

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	12 Months Ended
Goodwill and Other Intangible Assets	Dec. 31, 2023
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets	8) Goodwill and Other Intangible Assets Goodwill At December 31, 2023, the carrying value of goodwill was $167,631,000, which included $13,044,000 of goodwill related to its acquisition of Bay View Funding, $32,619,000 from its acquisition of Focus Business Bank, $13,819,000 from its acquisition of Tri-Valley Bank, $24,271,000 from its acquisition of United American Bank and $83,878,000 from its acquisition of Presidio Bank. Goodwill impairment exists when a reporting unit’s carrying value exceeds its fair value, which is determined through a qualitative assessment whether it is more likely than not that the fair value of equity of the reporting unit exceeds the carrying value (“Step Zero”). If the qualitative assessment indicates it is more likely than not that the fair value of equity of a reporting unit is less than book value, then a quantitative impairment test is required. The quantitative assessment identifies if a reporting unit fair value is less than its carrying value. If it is, then the Company will recognize goodwill impairment equal to the difference between the carrying amount of the reporting unit and its fair value, not to exceed the carrying amount of goodwill. The Company's policy is to test goodwill for impairment annually as of November 30, or on an interim basis if an event triggering impairment assessment may have occurred. The Company completed its annual goodwill impairment analysis as of November 30, 2023 with the assistance of an independent valuation firm. The goodwill related to the acquisition of Bay View Funding was tested separately for impairment under this analysis. The qualitative assessment indicated that it was more likely than not that the fair value of the reporting units exceeded the carry value. No events or circumstances since the November 30, 2023 annual impairment test were noted that would indicate it was more likely than not a goodwill impairment exists. The following table summarizes the carrying amount of goodwill by segment for the periods indicated: December 31, 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: December 31, 2023 Gross Carrying Accumulated Amount Amortization Total (Dollars in thousands) Core deposit intangibles $ 25,023 (16,646) $ 8,377 Customer relationship and brokered relationship intangibles 1,900 (1,741) 159 Below market leases 110 (19) 91 Total $ 27,033 $ (18,406) $ 8,627 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 Estimated amortization expense for each of the next five years and thereafter is as follows: Customer & Below/ Core Brokered (Above) Total Deposit Relationship Market Amortization Year Intangible Intangible Lease Expense (Dollars in thousands) 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 — 14 624 $ 8,377 $ 159 $ 91 $ 8,627 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 December 31, 2023 and December 31, 2022.

Deposits

Deposits	12 Months Ended
Deposits	Dec. 31, 2023
Deposits.
Deposits	9) Deposits The following table presents the scheduled maturities of all time deposits for the periods indicated: (Dollars in thousands) 2024 $ 453,017 2025 14,797 2026 1,283 2027 94 2028 — 2029 281 Total $ 469,472 Time deposits of $250,000 and over were $192,228,000 and $108,192,000 at December 31, 2023 and 2022, respectively. At December 31, 2023, ICS/CDARS deposits totaled $854,105,000 which were comprised of interest-bearing demand deposits of $424,991,000, money market deposits of $189,925,000, (which have no scheduled maturity date, and therefore, are excluded from the table above), and time deposits of $239,189,000, (which are included in the table above). At December 31, 2022, ICS/CDARS deposits totaled $30,374,000, which were comprised of interest-bearing demand deposits of $26,861,000 and money market deposits of $192,000, and time deposits of $3,321,000. The ICS/CDARS program allows customers with deposits in excess of FDIC-insured limits to obtain full coverage on time deposits through a network of banks within the ICS/CDARS program. Deposits gathered through these programs are not considered brokered deposits under current regulatory reporting guidelines. The Bank’s uninsured deposits were approximately $2.01 billion, or 46% of total deposits, at December 31, 2023, compared to $2.79 billion, or 64% of total deposits, at December 31, 2022. There were no brokered deposits at both December 31, 2023 and 2022. Deposits from executive officers, directors, and their affiliates were $468,000 and $712,000 at December 31, 2023 and 2022, respectively.

Borrowing Arrangements

Borrowing Arrangements	12 Months Ended
Borrowing Arrangements	Dec. 31, 2023
Borrowing Arrangements
Borrowing Arrangements	10) 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 $1,217,249,000 of loans and $383,194,000 of securities pledged to the FHLB as collateral on a line of credit of $1,100,931,000 at December 31, 2023, none of which was outstanding. HBC had $254,243,000 of loans and $1,085,000 of securities and pledged to the FHLB as collateral on a line of credit of $162,631,000 at December 31, 2022, none of which was outstanding. HBC can also borrow from the FRB’s discount window. HBC had approximately $1,658,642,000 of loans and securities pledged to the FRB as collateral on an available line of credit of approximately $1,235,573,000 at December 31, 2023, none of which was outstanding. HBC had approximately $1,000,207,000 of loans pledged to the FRB as collateral on an available line of credit of approximately $676,878,000 at December 31, 2022, none of which was outstanding. At December 31, 2023, HBC had Federal funds purchase arrangements available of $90,000,000. There were no Federal funds purchased outstanding at December 31, 2023 and 2022. HCC has a $20,000,000 line of credit with a correspondent bank, of which none was outstanding at December 31, 2023 and 2022. HBC may also utilize securities sold under repurchase agreements to manage our liquidity position. There were no securities sold under agreements to repurchase at December 31, 2023, and 2022. Subordinated Debt

Income Taxes

Income Taxes	12 Months Ended
Income Taxes	Dec. 31, 2023
Income Taxes
Income Taxes	11) Income Taxes Income tax expense consisted of the following for the year ended December 31, as follows: 2023 2022 2021 (Dollars in thousands) Currently payable tax: Federal $ 15,888 $ 18,994 $ 10,207 State 9,241 8,798 7,988 Total currently payable 25,129 27,792 18,195 Deferred tax expense (benefit): Federal 616 (1,237) 1,175 State 231 1,256 (1,200) Total deferred tax 847 19 (25) Income tax expense $ 25,976 $ 27,811 $ 18,170 The effective tax rate differs from the Federal statutory rate for the years ended December 31, as follows: 2023 2022 2021 Statutory Federal income tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal tax benefit 8.3 % 8.4 % 8.1 % Stock option/restricted stock windfall tax benefit 0.1 % (0.1) % (0.2) % Increase in cash surrender value of life insurance (0.5) % (0.4) % (0.6) % Low income housing credits, net of investment losses (0.2) % (0.2) % (0.3) % Non-taxable interest income (0.2) % (0.2) % (0.5) % Split-dollar term insurance 0.0 % 0.0 % 0.1 % ISO stock exercise 0.0 % 0.0 % (0.1) % Other, net 0.2 % 1.0 % 0.1 % Effective tax rate 28.7 % 29.5 % 27.6 % Deferred tax assets and liabilities that result from the tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes at December 31, are as follows: 2023 2022 (Dollars in thousands) Deferred tax assets: Allowance for credit losses on loans $ 14,087 $ 14,171 Lease accounting 9,304 9,703 Defined postretirement benefit obligation 7,778 7,585 Accrued expenses 3,150 3,440 Securities available-for-sale 2,897 4,690 State income taxes 1,874 1,924 Stock compensation 1,501 1,363 Federal net operating loss carryforwards 1,403 1,719 Premises and equipment 1,375 1,677 California net operating loss carryforwards 986 1,106 Nonaccrual interest 135 174 Split-dollar life insurance benefit plan 71 49 Other 323 201 Total deferred tax assets 44,884 47,802 Deferred tax liabilities: Lease accounting (9,304) (9,703) Loan fees (2,315) (2,304) Intangible liabilities (1,639) (1,940) Prepaid expenses (1,473) (1,304) FHLB stock (156) (156) I/O strips (30) (40) Other (202) (179) Total deferred tax liabilities (15,119) (15,626) Net deferred tax assets $ 29,765 $ 32,176 At December 31, 2023, the Company's federal net operating loss (“NOL”) carryforwards were $6,682,000 and the Company's California net operating loss carryforwards were $11,505,000. These amounts are attributable to the prior merger transactions. The realization of these NOL carryforwards for Federal and State tax purposes are limited on the amount of net operating losses that can be utilized annually under the current tax law. The above NOL carryforwards are presented net of the losses that will expire unutilized under current tax law. Since the NOL carryforwards are already presented net of the amounts that will expire by operation of current tax law, there is no need for a valuation allowance as the Company fully expects to utilize the amounts disclosed. 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. As of December 31, 2023 and 2022 the Company’s recorded amount of uncertain tax positions was not considered significant for financial reporting and the Company does not expect this amount to significantly increase or decrease in the next twelve months. At December 31, 2023 and December 31, 2022, the Company had net deferred tax assets of $29,765,000 and $32,176,000, respectively. At December 31, 2023 and December 31, 2022, management determined that a valuation allowance for deferred tax assets was not necessary. The Company and its subsidiaries are subject to U.S. Federal income tax as well as income tax of the State of California. The Company is no longer subject to examination by Federal and state taxing authorities for years before 2020, and by the State of California taxing authority for years before 2019. 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: December 31, December 31, 2023 2022 (Dollars in thousands) Low income housing investments $ 2,794 $ 3,537 Future commitments $ 494 $ 523 The Company expects $14,000 of the future commitments to be paid in 2024, and $480,000 in 2025 through 2026. For tax purposes, the Company recognized low income housing tax credits of $720,000 and $839,000 for the years ended December 31, 2023 and December 31, 2022, respectively, and low income housing investment expense of $743,000 and $842,000, respectively. The Company recognizes low income housing investment expenses as a component of income tax expense.

Equity Plan

Equity Plan	12 Months Ended
Equity Plan	Dec. 31, 2023
Equity Plan
Equity Plan	12) 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 600,000 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 at no less than the fair value at the date of grant. Options granted vest on a schedule determined by the Board at the time of grant. Generally, options vest over four years. All options expire no later than ten years from the date of grant. Restricted stock is subject to time vesting. To date, each RSU will vest ratably over three years and PRSUs are subject to cliff vesting after a three year performance period commencing in the initial year of grant. The earned PRSUs, if any, shall vest on the date on which the Board certifies whether and to what extent the performance goal has been achieved following the end of the performance period. In 2023, the Company granted 397,000 shares of nonqualified stock options, 119,362 shares of RSUs, 119,358 shares of PRSUs, and 73,446 shares of restricted stock subject to time vesting requirements. There were 1,393,531 shares available for the issuance of equity awards under the 2023 Plan as of December 31, 2023. 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 397,000 $ 7.45 Exercised (220,666) $ 5.53 Forfeited or expired (66,151) $ 10.26 Outstanding at December 31, 2023 2,637,356 $ 10.40 5.59 $ 2,664,557 Vested or expected to vest 2,479,115 5.59 $ 2,504,684 Exercisable at December 31, 2023 1,947,357 4.51 $ 1,811,470 Information related to the equity plans for each of the last three years: December 31, 2023 2022 2021 Intrinsic value of options exercised $ 805,334 $ 1,674,072 $ 1,543,711 Cash received from option exercise $ 1,219,286 $ 2,049,587 $ 1,469,255 Tax benefit realized from option exercises $ 20,527 $ 180,414 $ 153,745 Weighted average fair value of options granted $ 1.34 $ 2.22 $ 2.31 As of December 31, 2023, there was $1,203,000 of total unrecognized compensation cost related to nonvested stock options granted under the equity plans. That cost is expected to be recognized over a weighted-average period of approximately 2.64 years. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model that uses the assumptions noted in the following table, including the weighted average assumptions for the option grants in each year. December 31, 2023 2022 2021 Expected life in months(1) 72 72 72 Volatility(1) 35 % 31 % 33 % Weighted average risk-free interest rate(2) 3.52 % 2.89 % 1.10 % Expected dividends(3) 6.98 % 4.68 % 4.32 % (1) The expected life of employee stock options represents the weighted average period the stock options are expected to remain outstanding based on historical experience. Volatility is based on the historical volatility of the stock price over the same period of the expected life of the option. (2) Based on the U.S. Treasury constant maturity interest rate with a term consistent with the expected life of the option granted. (3) Each grant’s dividend yield is calculated by annualizing the most recent quarterly cash dividend and dividing that amount by the market price of the Company’s common stock as of the grant date The Company estimates the impact of forfeitures based on historical experience. Should the Company’s current estimate change, additional expense could be recognized or reversed in future periods. The Company issues authorized shares of common stock to satisfy stock option exercises. 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 December 31, 2023 185,413 $ 10.87 As of December 31, 2023, there was $1,030,000 of total unrecognized compensation cost related to nonvested restricted stock awards granted under the 2013 Plan and 2023 Plan. The cost is expected to be recognized over a weighted-average period of approximately 1.22 years. Total compensation cost for the 2004 Plan, 2013 Plan and 2023 Plan charged against income was $2,396,000, $3,178,000, $2,519,000, for 2023, 2022, and 2021, respectively. The total income tax (benefit) expense was $54,000, ($94,000), and ($155,000) for the years ended December 31, 2023, and 2022, and 2021, respectively. 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 December 31, 2023 119,362 $ 7.41 As of December 31, 2023, there were $582,000 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 2.33 years. 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 December 31, 2023 119,358 $ 7.41 As of December 31, 2023, there were $582,000 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 2.33 years.

Benefit Plans

Benefit Plans	12 Months Ended
Benefit Plans	Dec. 31, 2023
Benefit Plans
Benefit Plans	13) Benefit Plans 401(k) Savings Plan The Company offers a 401(k) savings plan that allows employees to contribute up to a maximum percentage of their compensation, as established by the Internal Revenue Code. The Company made a discretionary matching contribution of up to $3,000 for each employee’s contributions in 2023 and 2022. Contribution expense was $949,000, $942,000, and $944,000 in 2023, and 2022 and 2021, respectively. Employee Stock Ownership Plan The Company sponsors a non-contributory employee stock ownership plan (“ESOP”). To participate in this plan, an employee must have worked at least 1,000 hours during the year and must be employed by the Company at year-end. Employer contributions to the ESOP are discretionary. Contributions to the ESOP have been suspended since 2010 and ESOP was “frozen” as of January 1, 2019. At December 31, 2023, the ESOP owned 86,573 shares of the Company’s common stock. Deferred Compensation Plan The Company has a nonqualified deferred compensation plan for some of its employees. Under the deferred compensation plan, an employee may defer up to 100% of their bonus and 50% of their regular salary into a deferred account. Amounts deferred are invested in a portfolio of approved investment choices as directed by the employee. Amounts deferred by employees to the deferred compensation plan will be distributed at a future date that they have selected or upon termination of employment. There were eight and ten employees who elected to participate in the deferred compensation plan during 2023 and 2022, respectively. Nonqualified Defined Benefit Pension Plan The Company has a supplemental retirement plan (“SERP”) covering some current and some former key executives and directors. The SERP is an unfunded, nonqualified defined benefit plan. The combined number of active and retired/terminated participants in the SERP was 49 at December 31, 2023. The defined benefit represents a stated amount for key executives and directors that generally vests over nine years and is reduced for early retirement. The projected benefit obligation is included in “Accrued interest payable and other liabilities” on the consolidated balance sheets. The SERP has no assets and the projected benefit obligation is unfunded. The measurement date of the SERP is December 31. The following table sets forth the SERP’s status at December 31: 2023 2022 (Dollars in thousands) Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 25,800 $ 33,179 Service cost 192 347 Actuarial loss (gain) 793 (7,065) Interest cost 1,296 865 Benefits paid (1,629) (1,526) Projected benefit obligation at end of year $ 26,452 $ 25,800 Amounts recognized in accumulated other comprehensive loss: Net actuarial loss $ 2,892 $ 2,371 Weighted-average assumptions used to determine the benefit obligation at year-end: 2023 2022 Discount rate 4.95 % 5.17 % Rate of compensation increase N/A N/A Estimated benefit payments over the next ten years, which reflect anticipated future events, service and other assumptions, are as follows: Estimated Benefit Year Payments (Dollars in thousands) 2024 $ 1,701 2025 2,086 2026 2,187 2027 2,327 2028 2,379 2029 to 2033 12,388 The components of pension cost for the SERP follow: Year Ended December 31, 2023 2022 Components of net periodic benefit cost: Service cost $ 192 $ 347 Interest cost 1,296 865 Amortization of net actuarial loss 52 455 Net periodic benefit cost $ 1,540 $ 1,667 Amount recognized in other comprehensive income (loss) $ (521) $ 5,297 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. The estimated net actuarial loss and prior service cost for the SERP that will be amortized from Accumulated Other Comprehensive Loss into net periodic benefit cost over the next fiscal year are $104,000 as of December 31, 2023. Net periodic benefit cost for the years ended December 31, 2023 and 2022 were determined using the following assumption: 2023 2022 Discount rate 5.17 % 2.66 % Rate of compensation increase N/A N/A Split-Dollar Life Insurance Benefit Plan The Company maintains life insurance policies for some current and some former directors and officers that are subject to split-dollar life insurance agreements, some of which continues after the participant’s employment and retirement. The policies acquired from Focus and Presidio do not include a post-retirement benefit. All participants are fully vested in their split-dollar life insurance benefits. The accrued benefit liability for the split-dollar insurance agreements represents either the present value of the future death benefits payable to the participants’ beneficiaries or the present value of the estimated cost to maintain term life insurance, depending on the contractual terms of the participant’s underlying agreement. The split-dollar life insurance projected benefit obligation is included in “Accrued interest payable and other liabilities” on the consolidated balance sheets. The measurement date of the split-dollar life insurance benefit plan is December 31. The following sets forth the funded status of the split dollar life insurance benefits: December 31, 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 365 246 Actuarial loss (474) (2,430) Projected benefit obligation at end of period $ 6,951 $ 7,060 Amounts recognized in accumulated other comprehensive loss at December 31 consist of: December 31, December 31, 2023 2022 (Dollars in thousands) Net actuarial loss $ 2,108 $ 2,301 Prior transition obligation 701 790 Accumulated other comprehensive loss $ 2,809 $ 3,091 Weighted-average assumption used to determine the benefit obligation at year-end follow: 2023 2022 Discount rate 4.95 % 5.17 % Components of net periodic benefit cost during the year are: Year Ended December 31, 2023 2022 Amortization of prior transition obligation and actuarial losses $ (191) $ (41) Interest cost 365 246 Net periodic benefit cost $ 174 $ 205 Amount recognized in other comprehensive income $ 283 $ 2,389 The estimated net actuarial loss and prior transition obligation for the split-dollar life insurance benefit plan that will be amortized from accumulated other comprehensive loss into net periodic benefit cost over the next fiscal year are ($209,000) and ($191,000) as of December 31, 2023 and 2022, respectively. Weighted-average assumption used to determine the net periodic benefit cost: 2023 2022 Discount rate 5.17 % 2.66 %

Fair Value

Fair Value	12 Months Ended
Fair Value	Dec. 31, 2023
Fair Value
Fair Value	14) 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 Company uses matrix pricing (Level 2 inputs) to establish the fair value of its securities available-for-sale. 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 December 31, 2023 Available-for-sale securities: U.S. Treasury $ 382,369 $ 382,369 $ — $ — Agency mortgage-backed securities 60,267 — 60,267 — I/O strip receivables 117 — 117 — 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 — 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. Collateral dependent loans carried at fair value on a non-recurring basis are immaterial. 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 December 31, 2023 and December 31, 2022, there were no foreclosed assets on the balance sheet. Fair Value of Financial Instruments The carrying amounts and estimated fair values of financial instruments at December 31, 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 $ 408,129 $ 408,129 $ — $ — $ 408,129 Securities available-for-sale 442,636 382,369 60,267 — 442,636 Securities held-to-maturity 650,565 — 564,127 — 564,127 Loans (including loans held-for-sale) 3,352,583 (1) — 2,205 3,172,512 3,174,717 FHLB stock, FRB stock, and other investments 32,540 — — — N/A Accrued interest receivable 14,959 1,255 1,764 11,940 14,959 I/O strips receivables 117 — 117 — 117 Liabilities: Time deposits $ 469,472 $ — $ 471,693 $ — $ 471,693 Other deposits 3,908,986 — 3,908,986 — 3,908,986 Subordinated debt 39,502 — 31,902 — 31,902 Accrued interest payable 4,688 — 4,688 — 4,688 (1) Before allowance for credit losses on loans of $47,958,000. The carrying amounts and estimated fair values of financial instruments at December 31, 2022 are as follows: Estimated Fair Value Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs Amounts (Level 1) (Level 2) (Level 3) Total (Dollars in thousands) Assets: Cash and cash equivalents $ 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.

Commitments and Loss Contingenc

Commitments and Loss Contingencies	12 Months Ended
Commitments and Loss Contingencies	Dec. 31, 2023
Commitments and Loss Contingencies
Commitments and Loss Contingencies	15) Commitments and 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 December 31, 2023 follows: 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. ● 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. ● 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 appeals were dismissed or withdrawn during the fourth quarter of 2023 and have been returned to the trial court for further resolution. We believe the underlying claims are without merit and intend to defend them vigorously. The Company makes a provision for a liability relating to legal matters when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, estimated settlements, legal rulings, advice of legal counsel and other information and events pertaining to a particular matter. The outcomes of legal proceedings and other contingencies are, however, inherently unpredictable and subject to significant uncertainties. As a result, the Company is not able to reasonably estimate the amount or range of possible losses, including losses that could arise as a result of application of non-monetary remedies, with respect to the contingencies it faces, and the Company’s estimates may not prove to be accurate. At this time, we believe that the amount of reasonably possible losses resulting from final disposition of any pending lawsuits, audits, proceedings and claims will not have a material adverse effect individually or in the aggregate on our financial position, results of operations or liquidity. It is possible, however, that our future results of operations for a particular quarter or fiscal year could be impacted by changes in circumstances relating to lawsuits, proceedings or claims. Legal costs related to such claims are expensed as incurred. Off-Balance Sheet Arrangements In the normal course of business the Company makes commitments to extend credit to its customers as long as there are no violations of any conditions established in the contractual arrangements. These commitments are obligations that represent a potential credit risk to the Company, but are not reflected on the Company’s consolidated balance sheets. Total unused commitments to extend credit were $1,149,056,000 at December 31, 2023, compared to $1,134,619,000 at December 31, 2022. Unused commitments represented 34% outstanding gross loans at both December 31, 2023 and December 31, 2022. The effect on the Company’s revenues, expenses, cash flows and liquidity from the unused portion of the commitments to provide credit cannot be reasonably predicted because there is no certainty that lines of credit and letters of credit will ever be fully utilized. The following table presents the Company’s commitments to extend credit for the periods indicated: December 31, 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 $ 96,166 $ 1,041,608 $ 1,137,774 $ 87,348 $ 1,036,847 $ 1,124,195 Standby letters of credit 4,283 6,999 11,282 1,565 8,859 10,424 $ 100,449 $ 1,048,607 $ 1,149,056 $ 88,913 $ 1,045,706 $ 1,134,619 For the year ended December 31, 2023, there was a decrease of ($53,000) to the allowance for credit losses on loans for the Company’s off-balance sheet credit exposures, compared to the year ended December 31, 2022. The decrease in the allowance for credit losses for off-balance sheet credit exposures for the year ended December 31, 2023 was driven by lower loss factors for off-balance sheet exposures. The allowance for losses for the Company’s off-balance sheet credit exposures was $767,000 and $820,000 at December 31, 2023 and December 31, 2022, respectively.

Earnings Per Share

Earnings Per Share	12 Months Ended
Earnings Per Share	Dec. 31, 2023
Earnings Per Share
Earnings Per Share	16) Earnings Per Share Basic earnings per common share is computed by dividing net income, less dividends and discount accretion on preferred stock, by the weighted average common shares outstanding. Diluted earnings per share reflect potential dilution from outstanding stock options using the treasury stock method. There were 1,655,654 weighted average stock options for the year ended December 31, 2023, considered to be antidilutive and excluded from the computation of diluted earnings per share. There were 79,793 weighted average RSUs outstanding for the year ended December 31, 2023 considered to be antidilutive and excluded from the computation of diluted earnings per shares. There were 1,230,319 weighted average stock options for the year ended December 31, 2022, considered to be antidilutive and excluded from the computation of diluted earnings per share. There were 952,395 weighted average stock options for the year ended December 31, 2021, considered to be antidilutive and excluded from the computation of diluted earnings per share. A reconciliation of these factors used in computing basic and diluted earnings per common share is as follows: Year Ended December 31, 2023 2022 2021 (Dollars in thousands, except per share amounts) Net income $ 64,443 $ 66,555 $ $ 47,700 Weighted average common shares outstanding for basic earnings per common share 61,038,857 60,602,962 60,133,821 Dilutive potential common shares 272,461 487,328 555,241 Shares used in computing diluted earnings per common share 61,311,318 61,090,290 60,689,062 Basic earnings per share $ 1.06 $ 1.10 $ 0.79 Diluted earnings per share $ 1.05 $ 1.09 $ 0.79

Capital Requirements

Capital Requirements	12 Months Ended
Capital Requirements	Dec. 31, 2023
Capital Requirements
Capital Requirements	17) 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 December 31, 2023. There are no conditions or events since December 31, 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 December 31, 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 as of December 31, 2023, and December 31, 2022. Required For Capital Adequacy Purposes Actual Under Basel III Amount Ratio Amount Ratio (1) (Dollars in thousands) As of December 31, 2023 Total Capital $ 594,371 15.5 % $ 403,060 10.5 % (to risk-weighted assets) Tier 1 Capital $ 511,799 13.3 % $ 326,287 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 511,799 13.3 % $ 268,707 7.0 % (to risk-weighted assets) Tier 1 Capital $ 511,799 10.0 % $ 204,024 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) (1) Includes 2.5% capital conservation buffer, except the Tier 1 Capital to average assets ratio. HBC’s actual capital amounts and ratios are presented in the following table, together with capital adequacy requirements, under the Basel III regulatory requirements as of December 31, 2023, and December 31, 2022. 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, 2023 Total Capital $ 572,907 14.9 % $ 383,542 10.0 % $ 402,719 10.5 % (to risk-weighted assets) Tier 1 Capital $ 529,836 13.8 % $ 306,834 8.0 % $ 326,011 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 529,836 13.8 % $ 249,302 6.5 % $ 268,479 7.0 % (to risk-weighted assets) Tier 1 Capital $ 529,836 10.4 % $ 254,869 5.0 % $ 203,895 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. The Subordinated Debt, net of unamortized issuance costs, totaled $39,502,000 at December 31, 2023, and qualifies as Tier 2 capital for the Company under the guidelines established by the Federal Reserve Bank. Under California General Corporation Law, the holders of common stock are entitled to receive dividends when and as declared by the Board, 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 December 31, 2023, HBC would not be required to obtain regulatory approval, and the amount available for cash dividends is $34,085,000. Similar restrictions applied to the amount and sum of loan advances and other transfers of funds from HBC to the parent company. HBC distributed to HCC dividends of $32,000,000 for both years ended December 31, 2023 and 2022.

Revenue Recognition

Revenue Recognition	12 Months Ended
Revenue Recognition	Dec. 31, 2023
Revenue Recognition
Revenue Recognition	18) Revenue Recognition On January 1, 2018, the Company adopted ASU No. 2014-09 (Topic 606) Service charges and fees on deposit accounts consist of account analysis fees (i.e., net fees earned on analyzed business and public checking accounts), monthly service fees, check orders, and other deposit account related fees. We sometimes charge customers fees that are not specifically related to the customer accessing its funds, such as account maintenance or dormancy fees. The amount of deposit fees assessed varies based on a number of factors, such as the type of customer and account, the quantity of transactions, and the size of the deposit balance. We charge, and in some circumstances do not charge, fees to earn additional revenue and influence certain customer behavior. An example would be where we do not charge a monthly service fee, or do not charge for certain transactions, for customers that have a high deposit balance. Deposit fees are considered either transactional in nature (such as wire transfers, nonsufficient fund fees, and stop payment orders) or non-transactional (such as account maintenance and dormancy fees). These fees are recognized as earned or as transactions occur and services are provided. Check orders and other deposit account related fees are largely transactional based and, therefore, the Company’s performance obligation is satisfied, and related revenue recognized, at a point in time. Payment for service charges on deposit accounts is primarily received immediately or in the following month through a direct charge to customers’ accounts. The Company currently accounts for sales of foreclosed assets in accordance with Topic 360-20. In most cases the Company will seek to engage a real estate agent for the sale of foreclosed assets immediately upon foreclosure. However, in some cases, where there is clear demand for the property in question, the Company may elect to allow for a marketing period on no more than six months to attempt a direct sale of the property. We generally recognize the sale, and any associated gain or loss, of a real estate property when control of the property transfers. Any gains or losses from the sale are recorded to noninterest income/expense. The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the periods indicated: Year Ended December 31, 2023 2022 2021 (Dollars in thousands) Noninterest Income In-scope of Topic 606: Service charges and fees on deposit accounts $ 4,341 $ 4,640 $ 2,488 Total noninterest income in-scope of Topic 606 4,341 4,640 2,488 Noninterest Income Out-of-scope of Topic 606 4,657 5,471 7,200 Total noninterest income $ 8,998 $ 10,111 $ 9,688

Noninterest Expense

Noninterest Expense	12 Months Ended
Noninterest Expense	Dec. 31, 2023
Noninterest Expense
Noninterest Expense	19) Noninterest Expense The following table indicates the various components of the Company’s noninterest expense in each category for the periods indicated: Year Ended December 31, 2023 2022 2021 (Dollars in thousands) Salaries and employee benefits $ 56,862 $ 55,331 $ 51,862 Occupancy and equipment 9,490 9,639 9,038 Insurance expense 6,264 4,958 3,270 Professional fees 4,350 5,015 5,901 Data processing 3,429 2,482 2,146 Software subscriptions 2,599 1,958 1,924 Client services 2,512 1,851 1,563 Reserve for litigation — — 4,500 Other 15,548 13,625 12,873 Total noninterest expense $ 101,054 $ 94,859 $ 93,077

Business Segment Information

Business Segment Information	12 Months Ended
Business Segment Information	Dec. 31, 2023
Business Segment Information
Business Segment Information	20) 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 credit losses on loans 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. Year Ended December 31, 2023 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 220,871 $ 13,427 $ 234,298 Intersegment interest allocations 2,038 (2,038) — Total interest expense 51,074 — 51,074 Net interest income 171,835 11,389 183,224 Provision for (recapture of) credit losses on loans 1,005 (256) 749 Net interest income after provision 170,830 11,645 182,475 Noninterest income 8,582 416 8,998 Noninterest expense 94,451 6,603 101,054 Intersegment expense allocations 547 (547) — Income before income taxes 85,508 4,911 90,419 Income tax expense 24,524 1,452 25,976 Net income $ 60,984 $ 3,459 $ 64,443 Total assets $ 5,111,367 $ 82,728 $ 5,194,095 Loans, net of deferred fees $ 3,292,920 $ 57,458 $ 3,350,378 Goodwill $ 154,587 $ 13,044 $ 167,631 (1) Includes the holding company’s results of operations. Year Ended December 31, 2022 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 176,010 $ 12,818 $ 188,828 Intersegment interest allocations 1,441 (1,441) — Total interest expense 8,948 — 8,948 Net interest income 168,503 11,377 179,880 Provision (recapture) for credit losses on loans 526 240 766 Net interest income after provision 167,977 11,137 179,114 Noninterest income 9,722 389 10,111 Noninterest expense 88,531 6,328 94,859 Intersegment expense allocations 524 (524) — Income before income taxes 89,692 4,674 94,366 Income tax expense 26,429 1,382 27,811 Net income $ 63,263 $ 3,292 $ 66,555 Total assets $ 5,062,943 $ 94,637 $ 5,157,580 Loans, net of deferred fees $ 3,219,287 $ 79,263 $ 3,298,550 Goodwill $ 154,587 $ 13,044 $ 167,631 (1) Includes the holding company’s results of operations. Year Ended December 31, 2021 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 141,772 $ 11,484 $ 153,256 Intersegment interest allocations 868 (868) — Total interest expense 7,131 — 7,131 Net interest income 135,509 10,616 146,125 Provision for credit losses on loans (2,926) (208) (3,134) Net interest income after provision 138,435 10,824 149,259 Noninterest income 8,651 1,037 9,688 Noninterest expense 87,466 5,611 93,077 Intersegment expense allocations 410 (410) — Income before income taxes 60,030 5,840 65,870 Income tax expense 16,444 1,726 18,170 Net income $ 43,586 $ 4,114 $ 47,700 Total assets $ 5,424,350 $ 75,059 $ 5,499,409 Loans, net of deferred fees $ 3,034,097 $ 53,229 $ 3,087,326 Goodwill $ 154,587 $ 13,044 $ 167,631 (1) Includes the holding company’s results of operations.

Parent Company only Condensed F

Parent Company only Condensed Financial Information	12 Months Ended
Parent Company only Condensed Financial Information	Dec. 31, 2023
Parent Company only Condensed Financial Information
Parent Company only Condensed Financial Information	21) Parent Company only Condensed Financial Information The condensed financial statements of Heritage Commerce Corp (parent company only) are as follows: Condensed Balance Sheets December 31, 2023 2022 (Dollars in thousands) Assets Cash and cash equivalents $ 18,479 $ 20,974 Investment in subsidiary bank 690,918 649,545 Other assets 3,266 1,549 Total assets $ 712,663 $ 672,068 Liabilities and Shareholders' Equity Subordinated debt, net of issuance costs $ 39,502 $ 39,350 Other liabilities 260 262 Shareholders' equity 672,901 632,456 Total liabilities and shareholders' equity $ 712,663 $ 672,068 Condensed Statements of Income Year Ended December 31, 2023 2022 2021 (Dollars in thousands) Dividend from subsidiary bank $ 32,000 $ 32,000 $ 32,000 Interest expense (2,152) (2,179) (2,314) Other expenses (3,771) (3,675) (3,929) Income before income taxes and equity in net income of subsidiary bank 26,077 26,146 25,757 Equity in undistributed net income of subsidiary bank 36,648 38,702 20,127 Income tax benefit 1,718 1,707 1,816 Net income $ 64,443 $ 66,555 $ 47,700 Condensed Statements of Cash Flows Year Ended December 31, 2023 2022 2021 (Dollars in thousands) Cash flows from operating activities: Net Income $ 64,443 $ 66,555 $ 47,700 Adjustments to reconcile net income to net cash provided by operations: Amortization of restricted stock awards, net 1,404 2,583 1,940 Equity in undistributed net income of subsidiary bank (36,648) (38,702) (20,127) Net change in other assets and liabilities (1,174) 1,222 (603) Net cash provided by operating activities 28,025 31,658 28,910 Cash flows from financing activities: Repayment of subordinated debt — (40,000) — Net change in purchased funds and other short-term borrowings — 39,274 — Payment of cash dividends (31,740) (31,495) (31,270) Proceeds from exercise of stock options 1,220 2,050 1,469 Net cash used in financing activities (30,520) (30,171) (29,801) Net increase (decrease) in cash and cash equivalents (2,495) 1,487 (891) Cash and cash equivalents, beginning of year 20,974 19,487 20,378 Cash and cash equivalents, end of year $ 18,479 $ 20,974 $ 19,487

Subsequent Events

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2023
Subsequent Events
Subsequent Events	22) Subsequent Events On January 25, 2024, the Company announced that the Board declared a $0.13 per share quarterly cash dividend to holders of common stock. The dividend was payable on February 22, 2024 to shareholders of record on February 8, 2024.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
Summary of Significant Accounting Policies (Policies)	Dec. 31, 2023
Summary of Significant Accounting Policies
Description of Business and Basis of Presentation	Description of Business and Basis of Presentation Heritage Commerce Corp (“HCC”) operates as a registered bank holding company for its wholly-owned subsidiary Heritage Bank of Commerce (“HBC” or the “Bank”), collectively referred to as the “Company”. HBC was incorporated on November 23, 1993 and commenced operations on June 8, 1994. HBC is a California state chartered bank which offers a full range of commercial and personal banking services to residents and the business/professional community 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. Bay View Funding’s primary business operation is purchasing and collecting factored receivables. Factored receivables are receivables that have been transferred by the originating organization and typically have not been subject to previous collection efforts. In a factoring transaction Bay View Funding directly purchases the receivables generated by its clients at a discount to their face value. The transactions are structured to provide the clients with immediate working capital when there is a mismatch between payments to the client for a good and service and the payment of operating costs incurred to provide such good or service. The consolidated financial statements are prepared in accordance with accounting policies generally accepted in the United States of America and general practices in the banking industry. The financial statements include the accounts of the Company. All inter-company accounts and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents include cash on hand, amounts due from banks, amounts held at the Federal Reserve Bank, and Federal funds sold. In response to the COVID-19 pandemic, the Federal Reserve lowered the reserve requirement ratios to 0% effective March 26, 2020, and therefore, the Bank had no required reserve balance at December 31, 2023 and 2022. one
Cash Flows	Cash Flows Net cash flows are reported for customer loan and deposit transactions, notes payable, repurchase agreements and other short-term borrowings.
Securities	Securities The Company classifies its securities as either available-for-sale or held-to-maturity at the time of purchase. Debt securities are classified as held-to-maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Debt securities not classified as held-to-maturity are classified as available-for-sale. Securities available-for-sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of taxes. Interest income includes amortization of purchase premiums or discounts. Premiums and discounts are amortized, or accreted, over the life of the related security, or the earliest call date for callable securities purchased at a premium, as an adjustment to income using a method that approximates the interest method. Realized gains and losses are recorded on the trade date and determined using the specific identification method for the cost of securities sold.
Allowance for Credit Losses - Available-for-sale Securities	Allowance for Credit Losses – Available-for-sale Securities Changes in the allowance for credit losses are recorded as a provision (or reversal of) credit loss expense. Losses are charged against the allowance when management believes the uncollectibility of an available-for-sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met.
Allowance for Credit Losses - Held-to-Maturity Securities	Allowance for Credit Losses – Held-to-Maturity Securities Management measures expected credit losses on held-to-maturity debt securities on a collective basis by major security type and bond rating. The estimate of expected credit losses considers historical loss information that is adjusted for current conditions and reasonable and supportable forecasts. Management classifies the held-to-maturity portfolio in the following major security types: Agency mortgage-backed and municipal securities. All the mortgage-backed securities held by the Company are issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies, and have a long history of no credit losses. Other securities are comprised primarily of tax exempt municipal securities. At December 31, 2023, all of these securities are rated A-Aaa (defined as investment grade). The issuers in these securities are primarily municipal entities and school districts.
Loan Sales and Servicing	Loan Sales and Servicing The Company holds for sale the conditionally guaranteed portion of certain loans guaranteed by the Small Business Administration or the U.S. Department of Agriculture (collectively referred to as “SBA loans”). These loans are carried at the lower of aggregate cost or fair value. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings. Gains or losses on SBA loans held-for-sale are recognized upon completion of the sale, based on the difference between the selling price and the carrying value of the related loan sold. SBA loans are sold with servicing retained. Servicing assets recognized separately upon the sale of SBA loans consist of servicing rights and, for loans sold prior to 2009, interest-only strip receivables (“I/O strips”). The Company accounts for the sale and servicing of SBA loans based on the financial and servicing assets it controls and liabilities it has incurred, reversing recognition of financial assets when control has been surrendered, and reversing recognition of liabilities when extinguished. Servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sale of loans. Servicing rights are amortized in proportion to and over the period of net servicing income and are assessed for impairment on an ongoing basis. Impairment is determined by stratifying the servicing rights based on interest rates and terms. Any servicing assets in excess of the contractually specified servicing fees are reclassified at fair value as an I/O strip receivable and treated like an available for sale security. Fair value is determined using prices for similar assets with similar characteristics, when available, or based upon discounted cash flows using market-based assumptions. Impairment is recognized through a valuation allowance. The servicing rights, net of any required valuation allowance, and I/O strip receivable are included in other assets on the consolidated balance sheets. Servicing income, net of amortization of servicing rights, is recognized as noninterest income. The initial fair value of I/O strip receivables is amortized against interest income on loans.
Loans	Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at the principal amount outstanding, net of deferred loan origination fees and costs on originated loans, or unamortized premiums or discounts on purchased or acquired loans, and an allowance for credit losses on loans. Accrued interest receivable is excluded from the estimate of credit losses. Interest on loans is accrued on the unpaid principal balance and is credited to income using the effective yield interest method. Interest on purchased or acquired loans and the accretion (amortization) of the related purchase discount (premium) is also credited to income using the effective yield interest method. A loan portfolio segment is defined as the level at which the Company uses a systematic methodology to determine the allowance for credit losses on loans. A loan portfolio class is defined as a group of loans having similar risk characteristics and methods for monitoring and assessing risk. For all loan classes, when a loan is classified as nonaccrual, the accrual of interest is discontinued, any accrued and unpaid interest is reversed, and the amortization of deferred loan fees and costs is discontinued. For all loan classes, loans are classified as nonaccrual when the payment of principal or interest is 90 days past due, unless the loan is well secured and in the process of collection. Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for credit loss and individually evaluated loans. In certain circumstances, loans that are under 90 days past due may also be classified as nonaccrual. Any interest or principal payments received on nonaccrual loans are applied toward reduction of principal. Nonaccrual loans generally are not returned to performing status until the obligation is brought current, the loan has performed in accordance with the contract terms for a reasonable period of time, and the ultimate collectability of the contractual principal and interest is no longer in doubt. Non-refundable loan fees and direct origination costs are deferred and recognized over the expected lives of the related loans using the effective yield interest method.
Allowance for Credit Losses on Loans	Allowance for Credit Losses on Loans On January 1, 2023, the Company adopted the guidance of Financial Accounting Standards Board (“FASB”) 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 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 adoption of the new guidance did not have a material impact the Company’s consolidated financial statements. 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 $426,000 of Small Business Administration (“SBA”) Paycheck Protection Program loans and $57,458,000 of Bay View Funding factored receivables at December 31, 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 Commitments and Related Financial Instruments	Loan Commitments and Related Financial Instruments Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. The notional amount of these commitments is not reflected in the consolidated financial statement until they are funded. The Company maintains an allowance for credit losses on unfunded commercial lending commitments and letters of credit to provide for the risk of loss inherent in these arrangements. The allowance is computed using a methodology similar to that used to determine the allowance for credit losses for loans, modified to take into account the probability of a drawdown on the commitment. The allowance for credit losses on unfunded loan commitments is classified as a liability account on the balance sheet and is adjusted as a provision for credit loss expense included in other noninterest expense.
Federal Home Loan Bank and Federal Reserve Bank Stock	Federal Home Loan Bank and Federal Reserve Bank Stock As a member of the Federal Home Loan Bank (“FHLB”) system, the Bank is required to own common stock in the FHLB based on the Bank’s level of borrowings and outstanding FHLB advances. FHLB stock is carried at cost and classified as a restricted security. Both cash and stock dividends from the FHLB are reported as income. As a member of the Federal Reserve Bank (“FRB”) of San Francisco, the Bank is required to own stock in the FRB of San Francisco based on a specified ratio relative to our capital. FRB stock is carried at cost and may be sold back to the FRB at its carrying value. Cash dividends received from the FRB are reported as income.
Company Owned Life Insurance and Split-Dollar Life Insurance Benefit Plan	Company-Owned Life Insurance and Split-Dollar Life Insurance Benefit Plan The Company has purchased life insurance policies on certain directors and officers. Company-owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for charges or other amounts due that are probable at settlement. The purchased insurance is subject to split-dollar insurance agreements with the insured participants, which continues after the participant’s employment and retirement. Accounting guidance requires that a liability be recorded primarily over the participant’s service period when a split-dollar life insurance agreement continues after a participant’s employment or retirement. The required accrued liability is based on either the post-employment benefit cost for the continuing life insurance or the future death benefit depending on the contractual terms of the underlying agreement.
Premises and Equipment	Premises and Equipment Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation and amortization are computed on the straight-line basis over the lesser of the respective lease terms or estimated useful lives. The Company owns one building which is being depreciated over 40 years. Furniture, equipment and improvements depreciated three
Operating Lease Right of Use Assets and Liabilities	Operating Lease Right of Use Assets and Liabilities The Company determines if a lease is present at the inception of an agreement. Operating leases are capitalized at commencement and are discounted using the Company’s FHLB borrowing rate for a similar term borrowing unless the lease defines an implicit rate within the contract. The operating lease right of use assets represent the Company’s right to use an underlying asset for the lease term, and the operating lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease right of use assets and operating lease liabilities are recognized on the lease commencement date based on the present value of lease payments over the lease term. No significant judgments or assumptions were involved in developing the estimated operating lease liabilities as the Company’s operating lease liabilities largely represent future rental expenses associated with operating leases and the borrowing rates are based on publicly available interest rates.
Business Combinations	Business Combinations The Company accounts for acquisitions of businesses using the acquisition method of accounting. Under the acquisition method, assets acquired and liabilities assumed are recorded at their estimated fair values at the date of acquisition. Management utilizes various valuation techniques including discounted cash flow analyses to determine these fair values. Any excess of the purchase price over amounts allocated to the acquired assets, including identifiable intangible assets, and liabilities assumed is recorded as goodwill.
Goodwill and Other Intangible Assets	Goodwill and Other Intangible Assets Goodwill resulting from business combinations represents the excess of the purchase price over the fair value of the net assets of businesses acquired. Goodwill is assessed at least annually for impairment and any such impairment is recognized in the period identified. The Company’s annual goodwill impairment testing date is November 30. Other intangible assets consist of a core deposit intangible, a below market lease, an above market lease liability, a customer relationship and brokered relationship intangible assets. They are initially measured at fair value and then are amortized over their estimated useful lives. The core deposits intangible assets from the acquisitions are being amortized on an accelerated method over ten years. The below market value lease intangible assets are being amortized on the straight line method over three years. The above market lease adjustment is being amortized on the straight line method over 60 months. The customer relationship and brokered relationship intangible assets are being amortized over ten years.
Foreclosed Assets	Foreclosed Assets Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. If fair value declines subsequent to foreclosure, a valuation allowance is recorded through operations. Operating costs after acquisition are expensed. Gains and losses on disposition are included in noninterest expense. There were no foreclosed assets at December 31, 2023 and 2022.
Retirement Plans	Retirement Plans Expenses for the Company’s non-qualified, unfunded defined benefits plan consists of service and interest cost and amortization of gains and losses not immediately recognized. Employee 401(k) and profit sharing plan expense is the amount of matching contributions. Deferred compensation and supplemental retirement plan expense allocates the benefits over years of service.
Loss Contingencies	Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. The Company’s accounting policy for legal costs related to loss contingencies is to accrue for the probable fees that can be reasonably estimated. The Company’s accounting policy for uncertain recoveries is to recognize the anticipated recovery when realization is deemed probable.
Income Taxes	Income Taxes The Company files consolidated Federal and combined and separate state income tax returns. Income tax expense is the total of the current year income tax payable or refunded, the change in deferred tax assets and liabilities, and low income housing investment losses, net of tax benefits received. Some items of income and expense are recognized in different years for tax purposes when applying generally accepted accounting principles, leading to timing differences between the Company’s actual 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. Realization of the Company’s deferred tax assets is primarily dependent upon the Company generating sufficient taxable income to obtain benefit from the reversal of net deductible temporary differences and utilization of tax credit carryforwards for Federal and California state income tax purposes. The amount of deferred tax assets considered realizable is subject to adjustment in future periods based on estimates of future taxable income. Under generally accepted accounting principles, a valuation allowance is required to be recognized 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. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and penalties related to uncertain tax positions as income tax expense.
Stock-Based Compensation	Stock-Based Compensation Compensation cost is recognized for stock options and restricted stock awards issued to employees and directors, based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards, RSUs and PRSUs. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. Compensation cost recognized reflects estimated forfeitures, adjusted as necessary for actual forfeitures.
Comprehensive Income (Loss)	Comprehensive Income (Loss) Total comprehensive income (loss) consists of net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to gains and losses that are included in comprehensive income (loss) but are excluded from net income (loss) because they have been recorded directly in equity, net of tax, under the provisions of certain accounting guidance. The Company’s sources of other comprehensive income (loss) are unrealized gains and losses on securities available-for-sale, and I/O strips, which are treated like available-for-sale securities, and the liabilities related to the Company’s defined benefit pension plan and the split-dollar life insurance benefit plan. Reclassification adjustments result from gains or losses that were realized and included in net income (loss) of the current period that also had been included in other comprehensive income as unrealized holding gains and losses.
Segment Reporting	Segment Reporting HBC is a commercial bank serving customers located in Alameda, Contra Costa, Marin, San Benito, San Francisco, San Mateo, and Santa Clara counties of California. Bay View Funding provides business essential working capital factoring financing to various industries throughout the United States. No customer accounts for more than 10 percent of revenue for HBC or the Company. With the previous acquisition of Bay View Funding, the Company has two reportable segments consisting of Banking and Factoring.
Reclassifications	Reclassifications Certain items in the consolidated financial statements for the years ended December 31, 2022 and 2021 were reclassified to conform to the 2023 presentation. These reclassifications did not affect previously reported net income or shareholders’ equity.
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 no - - . - , ,

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (AOCI) (Tables)	12 Months Ended
Accumulated Other Comprehensive Income (AOCI) (Tables)	Dec. 31, 2023
Accumulated Other Comprehensive Income (Loss) ("AOCI")
Schedule of changes in AOCI by component	Year Ended December 31, 2023 and 2022 Unrealized Gains/(Losses) on Available- Defined for-Sale Benefit Securities Pension and I/O Plan Strips Items (1) Total (Dollars in thousands) Beginning balance January 1, 2023, net of taxes $ (11,394) $ (5,462) $ (16,856) Other comprehensive income (loss) before reclassification, net of taxes 4,365 (141) 4,224 Amounts reclassified from other comprehensive income (loss), net of taxes — (98) (98) Net current period other comprehensive income (loss), net of taxes 4,365 (239) 4,126 Ending balance December 31, 2023, net of taxes $ (7,029) $ (5,701) $ (12,730) Beginning balance January 1, 2022, net of taxes $ 2,153 $ (13,149) $ (10,996) Other comprehensive income (loss) before reclassification, net of taxes (13,547) 7,395 (6,152) Amounts reclassified from other comprehensive income (loss), net of taxes — 292 292 Net current period other comprehensive income (loss), net of taxes (13,547) 7,687 (5,860) Ending balance December 31, 2022, net of taxes $ (11,394) $ (5,462) $ (16,856) (1) This AOCI component is included in the computation of net periodic benefit cost (see Note 13—Benefit Plans) and includes split-dollar life insurance benefit plan.
Schedule of reclassifications out of AOCI into net income	Amounts Reclassified from AOCI Year Ended December 31, Affected Line Item Where Details About AOCI Components 2023 2022 2021 Net Income is Presented (Dollars in thousands) Amortization of unrealized gain on securities available-for-sale that were reclassified to securities held-to-maturity $ — $ — $ 371 Interest income on taxable securities — — (110) Income tax expense — — 261 Net of tax Amortization of defined benefit pension plan items (1) Prior transition obligation and actuarial losses (2) 191 41 4 Prior service cost and actuarial losses (3) (53) (455) (643) 138 (414) (639) Other noninterest expense (40) 122 189 Income tax benefit 98 (292) (450) Net of tax Total reclassification from AOCI for the period $ 98 $ (292) $ (189) (1) This AOCI component is included in the computation of net periodic benefit cost (see Note 13 — 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)	12 Months Ended
Securities (Tables)	Dec. 31, 2023
Securities
Schedule of amortized cost and estimated fair value of securities	Gross Gross Allowance Estimated Amortized Unrealized Unrealized for Credit Fair December 31, 2023 Cost Gains (Losses) Losses Value (Dollars in thousands) Securities available-for-sale: U.S. Treasury $ 387,990 $ — $ (5,621) $ — $ 382,369 Agency mortgage-backed securities 64,580 — (4,313) — 60,267 Total $ 452,570 $ — $ (9,934) $ — $ 442,636 Gross Gross Estimated Allowance Amortized Unrecognized Unrecognized Fair for Credit December 31, 2023 Cost Gains (Losses) Value Losses (Dollars in thousands) Securities held-to-maturity: Agency mortgage-backed securities $ 618,374 $ 282 $ (86,011) $ 532,645 $ — Municipals - exempt from Federal tax 32,203 3 (724) 31,482 (12) Total $ 650,577 $ 285 $ (86,735) $ 564,127 $ (12) 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 December 31, 2023 Value (Losses) Value (Losses) Value (Losses) (Dollars in thousands) Securities available-for-sale: U.S. Treasury $ 4,926 $ (40) $ 377,443 $ (5,581) $ 382,369 $ (5,621) Agency mortgage-backed securities — — 60,267 (4,313) 60,267 (4,313) Total $ 4,926 $ (40) $ 437,710 $ (9,894) $ 442,636 $ (9,934) Securities held-to-maturity: Agency mortgage-backed securities $ — $ — $ 520,615 $ (86,011) $ 520,615 $ (86,011) Municipals — exempt from Federal tax 9,790 (176) 13,151 (548) 22,941 (724) Total $ 9,790 $ (176) $ 533,766 $ (86,559) $ 543,556 $ (86,735) 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 $ 19,953 $ 19,920 Due after three months through one year 193,476 191,662 Due after one through five years 174,561 170,787 Agency mortgage-backed securities 64,580 60,267 Total $ 452,570 $ 442,636 Held-to-maturity Amortized Estimated Cost (1) Fair Value (Dollars in thousands) Due three months or less $ 400 $ 400 Due after three months through one year 665 665 Due after one through five years 7,271 7,157 Due after five through ten years 23,867 23,260 Agency mortgage-backed securities 618,374 532,645 Total $ 650,577 $ 564,127
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 (2) Ending balance December 31, 2023 $ 12

Loans and Allowance for Credi_2

Loans and Allowance for Credit Losses on Loans (Tables)	12 Months Ended
Loans and Allowance for Credit Losses on Loans (Tables)	Dec. 31, 2023
Loans and Allowance for Credit Losses on Loans
Schedule of loans	December 31, December 31, 2023 2022 (Dollars in thousands) Loans held-for-investment: Commercial $ 463,778 $ 533,915 Real estate: CRE - owner occupied 583,253 614,663 CRE - non-owner occupied 1,256,590 1,066,368 Land and construction 140,513 163,577 Home equity 119,125 120,724 Multifamily 269,734 244,882 Residential mortgages 496,961 537,905 Consumer and other 20,919 17,033 Loans 3,350,873 3,299,067 Deferred loan fees, net (495) (517) Loans, net of deferred fees 3,350,378 3,298,550 Allowance for credit losses on loans (47,958) (47,512) Loans, net $ 3,302,420 $ 3,251,038
Schedule of changes in allowance for loan (credit) losses	Year Ended December 31, 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 (750) — — — (246) — — (15) (1,011) Recoveries 346 11 — — 351 — — — 708 Net (charge-offs) recoveries (404) 11 — — 105 — — (15) (303) Provision for (recapture of) credit losses on loans (360) (641) 3,188 (589) (127) 1,687 (2,482) 73 749 End of period balance $ 5,853 $ 5,121 $ 25,323 $ 2,352 $ 644 $ 5,053 $ 3,425 $ 187 $ 47,958 Year Ended December 31, 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 (434) — — — — — — — (434) Recoveries 427 15 — — 105 — — 3,343 3,890 Net (charge-offs) recoveries (7) 15 — — 105 — — 3,343 3,456 Provision for (recapture of) credit losses on loans (1,790) (2,218) 5,010 1,110 (303) 570 1,775 (3,388) 766 End of period balance $ 6,617 $ 5,751 $ 22,135 $ 2,941 $ 666 $ 3,366 $ 5,907 $ 129 $ 47,512 Year Ended December 31, 2021 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 $ 11,587 $ 8,560 $ 16,416 $ 2,509 $ 1,297 $ 2,804 $ 943 $ 284 $ 44,400 Charge-offs (520) — — — — — — — (520) Recoveries 1,354 16 — 884 93 — — 197 2,544 Net (charge-offs) recoveries 834 16 — 884 93 — — 197 2,024 Provision for (recapture of) credit losses on loans (4,007) (622) 709 (1,562) (526) (8) 3,189 (307) (3,134) End of period balance $ 8,414 $ 7,954 $ 17,125 $ 1,831 $ 864 $ 2,796 $ 4,132 $ 174 $ 43,290
Schedule of nonperforming loans	December 31, 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 $ 946 $ 290 $ 889 $ 2,125 Real estate: CRE - Owner Occupied — — — — CRE - Non-Owner Occupied — — — — Land and construction 4,661 — — 4,661 Home equity 142 — — 142 Residential mortgages 779 — — 779 Total $ 6,528 $ 290 $ 889 $ 7,707 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	December 31, 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 $ 6,688 $ 2,030 $ 1,264 $ 9,982 $ 453,796 $ 463,778 Real estate: CRE - Owner Occupied — — — — 583,253 583,253 CRE - Non-Owner Occupied 1,289 — — 1,289 1,255,301 1,256,590 Land and construction 955 — 3,706 4,661 135,852 140,513 Home equity — — 142 142 118,983 119,125 Multifamily — — — — 269,734 269,734 Residential mortgages 3,794 510 779 5,083 491,878 496,961 Consumer and other — — — — 20,919 20,919 Total $ 12,726 $ 2,540 $ 5,891 $ 21,157 $ 3,329,716 $ 3,350,873 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 Loans Term Loans Amortized Cost Basis by Originated Period as of December 31, 2023 Amortized 2023 2022 2021 2020 2019 Prior Periods Cost Basis Total (Dollars in thousands) Commercial: Pass $ 99,387 $ 25,250 $ 19,732 $ 14,929 $ 11,893 $ 22,134 $ 258,461 $ 451,786 Special Mention 2,107 1,092 41 — 133 1,134 467 4,974 Substandard 4 1,516 — 100 185 3,835 142 5,782 Substandard-Nonaccrual — — 349 — 116 771 — 1,236 Total 101,498 27,858 20,122 15,029 12,327 27,874 259,070 463,778 CRE - Owner Occupied: Pass 32,993 86,688 110,613 68,184 52,885 214,729 10,302 576,394 Special Mention — 250 3,241 462 — 1,802 — 5,755 Substandard — — — — 1,100 4 — 1,104 Substandard-Nonaccrual — — — — — — — — Total 32,993 86,938 113,854 68,646 53,985 216,535 10,302 583,253 CRE - Non-Owner Occupied: Pass 225,505 243,080 267,870 28,315 92,648 370,552 3,199 1,231,169 Special Mention — — — — 7,493 10,040 — 17,533 Substandard — — — — — 7,614 274 7,888 Substandard-Nonaccrual — — — — — — — — Total 225,505 243,080 267,870 28,315 100,141 388,206 3,473 1,256,590 Land and construction: Pass 40,142 52,862 27,419 9,273 1,864 — — 131,560 Special Mention 2,163 — — — — — — 2,163 Substandard 2,129 — — — — — — 2,129 Substandard-Nonaccrual — — 3,706 955 — — — 4,661 Total 44,434 52,862 31,125 10,228 1,864 — — 140,513 Home equity: Pass — — — — — 1,463 111,250 112,713 Special Mention — — — — — — 2,110 2,110 Substandard — — — — — — 4,160 4,160 Substandard-Nonaccrual — — — — — — 142 142 Total — — — — — 1,463 117,662 119,125 Multifamily: Pass 47,089 41,112 55,557 5,394 42,129 75,890 355 267,526 Special Mention — — — — — — — — Substandard — — — — — 2,208 — 2,208 Substandard-Nonaccrual — — — — — — — — Total 47,089 41,112 55,557 5,394 42,129 78,098 355 269,734 Residential mortgage: Pass 1,684 187,417 268,617 1,037 6,861 28,892 — 494,508 Special Mention — — — — — — — — Substandard — 973 — — — 701 — 1,674 Substandard-Nonaccrual — 779 — — — — — 779 Total 1,684 189,169 268,617 1,037 6,861 29,593 — 496,961 Consumer and other: Pass 2,332 1,376 3 — — 2,089 14,961 20,761 Special Mention — — 62 — — 96 — 158 Substandard — — — — — — — — Substandard-Nonaccrual — — — — — — — — Total 2,332 1,376 65 — — 2,185 14,961 20,919 Total loans $ 455,535 $ 642,395 $ 757,210 $ 128,649 $ 217,307 $ 743,954 $ 405,823 $ 3,350,873 Risk Grades: Pass $ 449,132 $ 637,785 $ 749,811 $ 127,132 $ 208,280 $ 715,749 $ 398,528 $ 3,286,417 Special Mention 4,270 1,342 3,344 462 7,626 13,072 2,577 32,693 Substandard 2,133 2,489 — 100 1,285 14,362 4,576 24,945 Substandard-Nonaccrual — 779 4,055 955 116 771 142 6,818 Grand Total $ 455,535 $ 642,395 $ 757,210 $ 128,649 $ 217,307 $ 743,954 $ 405,823 $ 3,350,873 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 table presents the gross charge-offs by class of loans and year of origination for the year ended December 31, 2023: Gross Charge-offs by Originated Period for the Year Ended December 31, 2023 Revolving 2023 2022 2021 2020 2019 Prior Periods Loans Total (Dollars in thousands) Commercial $ 35 $ 95 $ — $ — $ 339 $ 281 $ — $ 750 Real estate: CRE - Owner Occupied — — — — — — — — CRE - Non-Owner Occupied — — — — — — — — Land and construction — — — — — — — — Home equity — — — — — — 246 246 Multifamily — — — — — — — — Residential mortgages — — — — — — — — Consumer and other — — — — 15 — — 15 Total $ 35 $ 95 $ — $ — $ 354 $ 281 $ 246 $ 1,011
Schedule of the amortized cost basis of the loans that were experiencing financial distress and modified	Year Ended December 31, 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 $ — $ 63 $ — $ — $ — $ 3 0.01 % Total $ — $ 63 $ — $ — $ — $ 3 0.01 %
Schedule of performance of loans that have been modified	Year Ended December 31, 2023 30 - 59 60 - 89 90 Days or Days Days Greater Total Past Due Past Due Past Due Past Due (Dollars in thousands) Commercial $ 45 $ 1 $ — $ 46 Total $ 45 $ 1 $ — $ 46
Schedule of financial effect of the loan modification presented of borrowers experiencing financial difficulty	Year Ended December 31, 2023 Weighted Weighted Average Average Interest Term Principal Rate Extension Forgiveness Reduction (Months) (Dollars in thousands) Commercial $ 7 0.25 % 14 Total $ 7 0.25 % 14

Loan Servicing (Tables)

Loan Servicing (Tables)	12 Months Ended
Loan Servicing (Tables)	Dec. 31, 2023
Loan Servicing
Schedule of activity for loan servicing rights	2023 2022 2021 (Dollars in thousands) Beginning of year balance $ 549 $ 655 $ 531 Additions 126 124 384 Amortization (260) (230) (260) End of year balance $ 415 $ 549 $ 655
Schedule of activity for IO strip receivables	2023 2022 2021 (Dollars in thousands) Beginning of year balance $ 152 $ 221 $ 305 Unrealized loss (35) (69) (84) End of year balance $ 117 $ 152 $ 221

Premises and Equipment (Tables)

Premises and Equipment (Tables)	12 Months Ended
Premises and Equipment (Tables)	Dec. 31, 2023
Premises and Equipment
Schedule of Premises and equipment	2023 2022 (Dollars in thousands) Building $ 3,637 $ 3,508 Land 2,900 2,900 Furniture and equipment 14,347 13,812 Leasehold improvements 6,767 5,597 27,651 25,817 Accumulated depreciation and amortization (17,794) (16,516) Premises and equipment, net $ 9,857 $ 9,301

Leases (Tables)

Leases (Tables)	12 Months Ended
Leases (Tables)	Dec. 31, 2023
Leases
Schedule of leases	Year Ended December 31, 2023 2022 Operating Lease Cost (Cost resulting from lease payments) $ 6,763 $ 6,625 Operating Lease - Operating Cash Flows (Fixed Payments) $ 6,701 $ 4,948 Operating Lease - ROU assets $ 31,674 $ 33,031 Operating Lease - Liabilities $ 31,674 $ 33,031 Weighted Average Lease Term - Operating Leases 5.88 years 6.60 years Weighted Average Discount Rate - Operating Leases 4.98% 4.49%
Schedule of maturity analysis shows the undiscounted cash flows due on the company's operating lease liabilities	(Dollars in thousands) 2024 $ 6,661 2025 6,278 2026 5,698 2027 5,552 2028 4,971 Thereafter 7,532 Total undiscounted cash flows 36,692 Discount on cash flows (5,018) Total lease liability $ 31,674

Goodwill and Other Intangible_2

Goodwill and Other Intangible Assets (Tables)	12 Months Ended
Goodwill and Other Intangible Assets (Tables)	Dec. 31, 2023
Goodwill and Other Intangible Assets
Schedule of carrying amount of goodwill by segment	December 31, 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	December 31, 2023 Gross Carrying Accumulated Amount Amortization Total (Dollars in thousands) Core deposit intangibles $ 25,023 (16,646) $ 8,377 Customer relationship and brokered relationship intangibles 1,900 (1,741) 159 Below market leases 110 (19) 91 Total $ 27,033 $ (18,406) $ 8,627 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) 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 — 14 624 $ 8,377 $ 159 $ 91 $ 8,627

Deposits (Tables)

Deposits (Tables)	12 Months Ended
Deposits (Tables)	Dec. 31, 2023
Deposits.
Schedule of maturities of time deposits	(Dollars in thousands) 2024 $ 453,017 2025 14,797 2026 1,283 2027 94 2028 — 2029 281 Total $ 469,472

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
Income Taxes (Tables)	Dec. 31, 2023
Income Taxes
Schedule of income tax (benefit)	2023 2022 2021 (Dollars in thousands) Currently payable tax: Federal $ 15,888 $ 18,994 $ 10,207 State 9,241 8,798 7,988 Total currently payable 25,129 27,792 18,195 Deferred tax expense (benefit): Federal 616 (1,237) 1,175 State 231 1,256 (1,200) Total deferred tax 847 19 (25) Income tax expense $ 25,976 $ 27,811 $ 18,170
Schedule of effective tax rate differs from the federal statutory rate	2023 2022 2021 Statutory Federal income tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal tax benefit 8.3 % 8.4 % 8.1 % Stock option/restricted stock windfall tax benefit 0.1 % (0.1) % (0.2) % Increase in cash surrender value of life insurance (0.5) % (0.4) % (0.6) % Low income housing credits, net of investment losses (0.2) % (0.2) % (0.3) % Non-taxable interest income (0.2) % (0.2) % (0.5) % Split-dollar term insurance 0.0 % 0.0 % 0.1 % ISO stock exercise 0.0 % 0.0 % (0.1) % Other, net 0.2 % 1.0 % 0.1 % Effective tax rate 28.7 % 29.5 % 27.6 %
Schedule of deferred tax assets and liabilities	2023 2022 (Dollars in thousands) Deferred tax assets: Allowance for credit losses on loans $ 14,087 $ 14,171 Lease accounting 9,304 9,703 Defined postretirement benefit obligation 7,778 7,585 Accrued expenses 3,150 3,440 Securities available-for-sale 2,897 4,690 State income taxes 1,874 1,924 Stock compensation 1,501 1,363 Federal net operating loss carryforwards 1,403 1,719 Premises and equipment 1,375 1,677 California net operating loss carryforwards 986 1,106 Nonaccrual interest 135 174 Split-dollar life insurance benefit plan 71 49 Other 323 201 Total deferred tax assets 44,884 47,802 Deferred tax liabilities: Lease accounting (9,304) (9,703) Loan fees (2,315) (2,304) Intangible liabilities (1,639) (1,940) Prepaid expenses (1,473) (1,304) FHLB stock (156) (156) I/O strips (30) (40) Other (202) (179) Total deferred tax liabilities (15,119) (15,626) Net deferred tax assets $ 29,765 $ 32,176
Summary of carrying amount of low income tax housing investment	December 31, December 31, 2023 2022 (Dollars in thousands) Low income housing investments $ 2,794 $ 3,537 Future commitments $ 494 $ 523

Equity Plan (Tables)

Equity Plan (Tables)	12 Months Ended
Equity Plan (Tables)	Dec. 31, 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 397,000 $ 7.45 Exercised (220,666) $ 5.53 Forfeited or expired (66,151) $ 10.26 Outstanding at December 31, 2023 2,637,356 $ 10.40 5.59 $ 2,664,557 Vested or expected to vest 2,479,115 5.59 $ 2,504,684 Exercisable at December 31, 2023 1,947,357 4.51 $ 1,811,470
Schedule of information related to the Equity Plans	December 31, 2023 2022 2021 Intrinsic value of options exercised $ 805,334 $ 1,674,072 $ 1,543,711 Cash received from option exercise $ 1,219,286 $ 2,049,587 $ 1,469,255 Tax benefit realized from option exercises $ 20,527 $ 180,414 $ 153,745 Weighted average fair value of options granted $ 1.34 $ 2.22 $ 2.31
Schedule of assumptions used to estimate the fair value of each option grant on the date of grant	December 31, 2023 2022 2021 Expected life in months(1) 72 72 72 Volatility(1) 35 % 31 % 33 % Weighted average risk-free interest rate(2) 3.52 % 2.89 % 1.10 % Expected dividends(3) 6.98 % 4.68 % 4.32 % (1) The expected life of employee stock options represents the weighted average period the stock options are expected to remain outstanding based on historical experience. Volatility is based on the historical volatility of the stock price over the same period of the expected life of the option. (2) Based on the U.S. Treasury constant maturity interest rate with a term consistent with the expected life of the option granted. (3) Each grant’s dividend yield is calculated by annualizing the most recent quarterly cash dividend and dividing that amount by the market price of the Company’s common stock as of the grant date
Schedule of restricted stock activity under 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 December 31, 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 December 31, 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 December 31, 2023 119,358 $ 7.41

Benefit Plans (Tables)

Benefit Plans (Tables)	12 Months Ended
Benefit Plans (Tables)	Dec. 31, 2023
Supplemental Retirement Plan
Benefit plans
Schedule of change in projected benefit obligation	2023 2022 (Dollars in thousands) Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 25,800 $ 33,179 Service cost 192 347 Actuarial loss (gain) 793 (7,065) Interest cost 1,296 865 Benefits paid (1,629) (1,526) Projected benefit obligation at end of year $ 26,452 $ 25,800 Amounts recognized in accumulated other comprehensive loss: Net actuarial loss $ 2,892 $ 2,371
Schedule of weighted-average assumptions used to determine the benefit obligation	2023 2022 Discount rate 4.95 % 5.17 % Rate of compensation increase N/A N/A
Schedule of estimated benefit payments over the next ten years, which reflect anticipated future events, service and other assumptions	Estimated Benefit Year Payments (Dollars in thousands) 2024 $ 1,701 2025 2,086 2026 2,187 2027 2,327 2028 2,379 2029 to 2033 12,388
Schedule of components of net periodic benefit cost	Year Ended December 31, 2023 2022 Components of net periodic benefit cost: Service cost $ 192 $ 347 Interest cost 1,296 865 Amortization of net actuarial loss 52 455 Net periodic benefit cost $ 1,540 $ 1,667 Amount recognized in other comprehensive income (loss) $ (521) $ 5,297
Schedule of assumption used to determine the net periodic benefit cost	2023 2022 Discount rate 5.17 % 2.66 % Rate of compensation increase N/A N/A
Split-Dollar Life Insurance Benefit Plan
Benefit plans
Schedule of change in projected benefit obligation	December 31, 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 365 246 Actuarial loss (474) (2,430) Projected benefit obligation at end of period $ 6,951 $ 7,060
Schedule of weighted-average assumptions used to determine the benefit obligation	2023 2022 Discount rate 4.95 % 5.17 %
Schedule of amounts recognized in accumulated other comprehensive loss	December 31, December 31, 2023 2022 (Dollars in thousands) Net actuarial loss $ 2,108 $ 2,301 Prior transition obligation 701 790 Accumulated other comprehensive loss $ 2,809 $ 3,091
Schedule of components of net periodic benefit cost	Year Ended December 31, 2023 2022 Amortization of prior transition obligation and actuarial losses $ (191) $ (41) Interest cost 365 246 Net periodic benefit cost $ 174 $ 205 Amount recognized in other comprehensive income $ 283 $ 2,389
Schedule of assumption used to determine the net periodic benefit cost	2023 2022 Discount rate 5.17 % 2.66 %

Fair Value (Tables)

Fair Value (Tables)	12 Months Ended
Fair Value (Tables)	Dec. 31, 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 December 31, 2023 Available-for-sale securities: U.S. Treasury $ 382,369 $ 382,369 $ — $ — Agency mortgage-backed securities 60,267 — 60,267 — I/O strip receivables 117 — 117 — 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 December 31, 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 $ 408,129 $ 408,129 $ — $ — $ 408,129 Securities available-for-sale 442,636 382,369 60,267 — 442,636 Securities held-to-maturity 650,565 — 564,127 — 564,127 Loans (including loans held-for-sale) 3,352,583 (1) — 2,205 3,172,512 3,174,717 FHLB stock, FRB stock, and other investments 32,540 — — — N/A Accrued interest receivable 14,959 1,255 1,764 11,940 14,959 I/O strips receivables 117 — 117 — 117 Liabilities: Time deposits $ 469,472 $ — $ 471,693 $ — $ 471,693 Other deposits 3,908,986 — 3,908,986 — 3,908,986 Subordinated debt 39,502 — 31,902 — 31,902 Accrued interest payable 4,688 — 4,688 — 4,688 (1) Before allowance for credit losses on loans of $47,958,000. The carrying amounts and estimated fair values of financial instruments at December 31, 2022 are as follows: Estimated Fair Value Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs Amounts (Level 1) (Level 2) (Level 3) Total (Dollars in thousands) Assets: Cash and cash equivalents $ 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.

Commitments and Loss Continge_2

Commitments and Loss Contingencies (Tables)	12 Months Ended
Commitments and Loss Contingencies (Tables)	Dec. 31, 2023
Commitments and Loss Contingencies
Schedule of commitments to extend credit	December 31, 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 $ 96,166 $ 1,041,608 $ 1,137,774 $ 87,348 $ 1,036,847 $ 1,124,195 Standby letters of credit 4,283 6,999 11,282 1,565 8,859 10,424 $ 100,449 $ 1,048,607 $ 1,149,056 $ 88,913 $ 1,045,706 $ 1,134,619

Earnings Per Share (Tables)

Earnings Per Share (Tables)	12 Months Ended
Earnings Per Share (Tables)	Dec. 31, 2023
Earnings Per Share
Schedule of reconciliation of factors used in computing basic and diluted earnings per common share	Year Ended December 31, 2023 2022 2021 (Dollars in thousands, except per share amounts) Net income $ 64,443 $ 66,555 $ $ 47,700 Weighted average common shares outstanding for basic earnings per common share 61,038,857 60,602,962 60,133,821 Dilutive potential common shares 272,461 487,328 555,241 Shares used in computing diluted earnings per common share 61,311,318 61,090,290 60,689,062 Basic earnings per share $ 1.06 $ 1.10 $ 0.79 Diluted earnings per share $ 1.05 $ 1.09 $ 0.79

Capital Requirements (Tables)

Capital Requirements (Tables)	12 Months Ended
Capital Requirements (Tables)	Dec. 31, 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 December 31, 2023 Total Capital $ 594,371 15.5 % $ 403,060 10.5 % (to risk-weighted assets) Tier 1 Capital $ 511,799 13.3 % $ 326,287 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 511,799 13.3 % $ 268,707 7.0 % (to risk-weighted assets) Tier 1 Capital $ 511,799 10.0 % $ 204,024 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) (1) 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 December 31, 2023 Total Capital $ 572,907 14.9 % $ 383,542 10.0 % $ 402,719 10.5 % (to risk-weighted assets) Tier 1 Capital $ 529,836 13.8 % $ 306,834 8.0 % $ 326,011 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 529,836 13.8 % $ 249,302 6.5 % $ 268,479 7.0 % (to risk-weighted assets) Tier 1 Capital $ 529,836 10.4 % $ 254,869 5.0 % $ 203,895 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.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	12 Months Ended
Revenue Recognition (Tables)	Dec. 31, 2023
Revenue Recognition
Schedule of noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606	Year Ended December 31, 2023 2022 2021 (Dollars in thousands) Noninterest Income In-scope of Topic 606: Service charges and fees on deposit accounts $ 4,341 $ 4,640 $ 2,488 Total noninterest income in-scope of Topic 606 4,341 4,640 2,488 Noninterest Income Out-of-scope of Topic 606 4,657 5,471 7,200 Total noninterest income $ 8,998 $ 10,111 $ 9,688

Noninterest Expense (Tables)

Noninterest Expense (Tables)	12 Months Ended
Noninterest Expense (Tables)	Dec. 31, 2023
Noninterest Expense
Schedule of noninterest expense	Year Ended December 31, 2023 2022 2021 (Dollars in thousands) Salaries and employee benefits $ 56,862 $ 55,331 $ 51,862 Occupancy and equipment 9,490 9,639 9,038 Insurance expense 6,264 4,958 3,270 Professional fees 4,350 5,015 5,901 Data processing 3,429 2,482 2,146 Software subscriptions 2,599 1,958 1,924 Client services 2,512 1,851 1,563 Reserve for litigation — — 4,500 Other 15,548 13,625 12,873 Total noninterest expense $ 101,054 $ 94,859 $ 93,077

Business Segment Information (T

Business Segment Information (Tables)	12 Months Ended
Business Segment Information (Tables)	Dec. 31, 2023
Business Segment Information
Schedule of information by operating segment	Year Ended December 31, 2023 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 220,871 $ 13,427 $ 234,298 Intersegment interest allocations 2,038 (2,038) — Total interest expense 51,074 — 51,074 Net interest income 171,835 11,389 183,224 Provision for (recapture of) credit losses on loans 1,005 (256) 749 Net interest income after provision 170,830 11,645 182,475 Noninterest income 8,582 416 8,998 Noninterest expense 94,451 6,603 101,054 Intersegment expense allocations 547 (547) — Income before income taxes 85,508 4,911 90,419 Income tax expense 24,524 1,452 25,976 Net income $ 60,984 $ 3,459 $ 64,443 Total assets $ 5,111,367 $ 82,728 $ 5,194,095 Loans, net of deferred fees $ 3,292,920 $ 57,458 $ 3,350,378 Goodwill $ 154,587 $ 13,044 $ 167,631 (1) Includes the holding company’s results of operations. Year Ended December 31, 2022 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 176,010 $ 12,818 $ 188,828 Intersegment interest allocations 1,441 (1,441) — Total interest expense 8,948 — 8,948 Net interest income 168,503 11,377 179,880 Provision (recapture) for credit losses on loans 526 240 766 Net interest income after provision 167,977 11,137 179,114 Noninterest income 9,722 389 10,111 Noninterest expense 88,531 6,328 94,859 Intersegment expense allocations 524 (524) — Income before income taxes 89,692 4,674 94,366 Income tax expense 26,429 1,382 27,811 Net income $ 63,263 $ 3,292 $ 66,555 Total assets $ 5,062,943 $ 94,637 $ 5,157,580 Loans, net of deferred fees $ 3,219,287 $ 79,263 $ 3,298,550 Goodwill $ 154,587 $ 13,044 $ 167,631 (1) Includes the holding company’s results of operations. Year Ended December 31, 2021 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 141,772 $ 11,484 $ 153,256 Intersegment interest allocations 868 (868) — Total interest expense 7,131 — 7,131 Net interest income 135,509 10,616 146,125 Provision for credit losses on loans (2,926) (208) (3,134) Net interest income after provision 138,435 10,824 149,259 Noninterest income 8,651 1,037 9,688 Noninterest expense 87,466 5,611 93,077 Intersegment expense allocations 410 (410) — Income before income taxes 60,030 5,840 65,870 Income tax expense 16,444 1,726 18,170 Net income $ 43,586 $ 4,114 $ 47,700 Total assets $ 5,424,350 $ 75,059 $ 5,499,409 Loans, net of deferred fees $ 3,034,097 $ 53,229 $ 3,087,326 Goodwill $ 154,587 $ 13,044 $ 167,631 (1) Includes the holding company’s results of operations.

Parent Company only Condensed_2

Parent Company only Condensed Financial Information (Tables) - Parent Company	12 Months Ended
	Dec. 31, 2023
Condensed financial statements
Schedule of condensed balance sheets	Condensed Balance Sheets December 31, 2023 2022 (Dollars in thousands) Assets Cash and cash equivalents $ 18,479 $ 20,974 Investment in subsidiary bank 690,918 649,545 Other assets 3,266 1,549 Total assets $ 712,663 $ 672,068 Liabilities and Shareholders' Equity Subordinated debt, net of issuance costs $ 39,502 $ 39,350 Other liabilities 260 262 Shareholders' equity 672,901 632,456 Total liabilities and shareholders' equity $ 712,663 $ 672,068
Schedule of condensed statements of income	Condensed Statements of Income Year Ended December 31, 2023 2022 2021 (Dollars in thousands) Dividend from subsidiary bank $ 32,000 $ 32,000 $ 32,000 Interest expense (2,152) (2,179) (2,314) Other expenses (3,771) (3,675) (3,929) Income before income taxes and equity in net income of subsidiary bank 26,077 26,146 25,757 Equity in undistributed net income of subsidiary bank 36,648 38,702 20,127 Income tax benefit 1,718 1,707 1,816 Net income $ 64,443 $ 66,555 $ 47,700
Schedule of condensed statements of cash flows	Condensed Statements of Cash Flows Year Ended December 31, 2023 2022 2021 (Dollars in thousands) Cash flows from operating activities: Net Income $ 64,443 $ 66,555 $ 47,700 Adjustments to reconcile net income to net cash provided by operations: Amortization of restricted stock awards, net 1,404 2,583 1,940 Equity in undistributed net income of subsidiary bank (36,648) (38,702) (20,127) Net change in other assets and liabilities (1,174) 1,222 (603) Net cash provided by operating activities 28,025 31,658 28,910 Cash flows from financing activities: Repayment of subordinated debt — (40,000) — Net change in purchased funds and other short-term borrowings — 39,274 — Payment of cash dividends (31,740) (31,495) (31,270) Proceeds from exercise of stock options 1,220 2,050 1,469 Net cash used in financing activities (30,520) (30,171) (29,801) Net increase (decrease) in cash and cash equivalents (2,495) 1,487 (891) Cash and cash equivalents, beginning of year 20,974 19,487 20,378 Cash and cash equivalents, end of year $ 18,479 $ 20,974 $ 19,487

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Cash and Cash Equivalents (Details)	12 Months Ended
	Dec. 31, 2023
Cash and Cash Equivalents
Period for which federal funds are sold and purchased	1 day

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Allowance for Credit Losses on Loans (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Allowance for credit losses on loans	$ 47,958,000	$ 47,512,000	$ 43,290,000	$ 44,400,000
Balance to report	3,302,420,000	3,251,038,000
SBA Paycheck Protection Program ("PPP") loans
Loans, net of deferred fees	426,000	1,166,000
Bay View Funding
Loans, net of deferred fees	$ 57,458,000	$ 79,263,000

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Premises and Equipment (Details)	12 Months Ended
	Dec. 31, 2023 building
Building
Premises and Equipment
Number of buildings owned	1
Estimated useful life	40 years
Furniture \| Minimum
Premises and Equipment
Estimated useful life	3 years
Furniture \| Maximum
Premises and Equipment
Estimated useful life	15 years
Equipment \| Minimum
Premises and Equipment
Estimated useful life	3 years
Equipment \| Maximum
Premises and Equipment
Estimated useful life	15 years
Leasehold improvements \| Minimum
Premises and Equipment
Estimated useful life	3 years
Leasehold improvements \| Maximum
Premises and Equipment
Estimated useful life	15 years

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Goodwill and Other Intangible Assets (Details)	Oct. 11, 2019	May 04, 2018	Aug. 01, 2015	Nov. 30, 2014
United American Bank
Goodwill and Other Intangible Assets
Useful life, amortization period		3 years
Core deposit \| Focus
Goodwill and Other Intangible Assets
Useful life, amortization period			10 years
Below/ (Above) market-value lease \| Presidio bank
Goodwill and Other Intangible Assets
Useful life, amortization period	60 months
Customer relationship and brokered relationship \| BVF/CSNK
Goodwill and Other Intangible Assets
Useful life, amortization period				10 years

Summary of Significant Accoun_7

Summary of Significant Accounting Policies - Foreclosed Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Foreclosed Assets
Foreclosed assets	$ 0	$ 0

Summary of Significant Accoun_8

Summary of Significant Accounting Policies- Segment Reporting (Details)	12 Months Ended
	Dec. 31, 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 Reportable Segments \| segment	2

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (AOCI) - Changes in AOCI by Component (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Changes in AOCI by Component
Balance at the beginning of the period, net of taxes	$ (16,856)
Net current period other comprehensive income (loss), net of taxes	4,126	$ (5,860)	$ (279)
Balance at the end of the period, net of taxes	(12,730)	(16,856)
Accumulated Other Comprehensive Loss
Changes in AOCI by Component
Balance at the beginning of the period, net of taxes	(16,856)	(10,996)
Other comprehensive income (loss) before reclassification, net of taxes	4,224	(6,152)
Amounts reclassified from other comprehensive income (loss), net of taxes	(98)	292
Net current period other comprehensive income (loss), net of taxes	4,126	(5,860)	(279)
Balance at the end of the period, net of taxes	(12,730)	(16,856)	(10,996)
Unrealized Gains/(Losses) on Available-for-Sale Securities and I/O Strips
Changes in AOCI by Component
Balance at the beginning of the period, net of taxes	(11,394)	2,153
Other comprehensive income (loss) before reclassification, net of taxes	4,365	(13,547)
Net current period other comprehensive income (loss), net of taxes	4,365	(13,547)
Balance at the end of the period, net of taxes	(7,029)	(11,394)	2,153
Defined Benefit Pension Plan Items
Changes in AOCI by Component
Balance at the beginning of the period, net of taxes	(5,462)	(13,149)
Other comprehensive income (loss) before reclassification, net of taxes	(141)	7,395
Amounts reclassified from other comprehensive income (loss), net of taxes	(98)	292
Net current period other comprehensive income (loss), net of taxes	(239)	7,687
Balance at the end of the period, net of taxes	$ (5,701)	$ (5,462)	$ (13,149)

Accumulated Other Comprehensi_4

Accumulated Other Comprehensive Income (AOCI) - Amount Reclassified from AOCI (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Amount Reclassified from AOCI
Interest income on taxable securities	$ 27,351	$ 20,666	$ 8,678
Income tax expense	(25,976)	(27,811)	(18,170)
Net income	64,443	66,555	47,700
Amortization of unrealized gain on securities available-for-sale that were reclassified to securities held-to-maturity \| Amount Reclassified from AOCI
Amount Reclassified from AOCI
Interest income on taxable securities			371
Income tax expense			(110)
Net income			261
Defined Benefit Pension Plan Items
Amount Reclassified from AOCI
Net of tax	98	(292)
Defined Benefit Pension Plan Items \| Amount Reclassified from AOCI
Amount Reclassified from AOCI
Other noninterest expense	138	(414)	(639)
Income tax benefit	(40)	122	189
Net of tax	98	(292)	(450)
Prior transition obligation \| Amount Reclassified from AOCI
Amount Reclassified from AOCI
Other noninterest expense	191	41	4
Prior service cost \| Amount Reclassified from AOCI
Amount Reclassified from AOCI
Other noninterest expense	(53)	(455)	(643)
Accumulated Other Comprehensive Loss
Amount Reclassified from AOCI
Net of tax	98	(292)
Accumulated Other Comprehensive Loss \| Amount Reclassified from AOCI
Amount Reclassified from AOCI
Net of tax	$ 98	$ (292)	$ (189)

Securities - Amortized Cost and

Securities - Amortized Cost and Estimated Fair Value of Securities - Securities Available-for-sale (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Securities available-for-sale:
Total	$ 452,570	$ 505,713
Gross Unrealized (Losses)	(9,934)	(16,117)
Estimated Fair Value	442,636	489,596
U.S. Treasury
Securities available-for-sale:
Total	387,990	428,797
Gross Unrealized (Losses)	(5,621)	(10,323)
Estimated Fair Value	382,369	418,474
Agency mortgage-backed securities
Securities available-for-sale:
Total	64,580	76,916
Gross Unrealized (Losses)	(4,313)	(5,794)
Estimated Fair Value	$ 60,267	$ 71,122

Securities - Amortized Cost a_2

Securities - Amortized Cost and Estimated Fair Value of Securities - Securities Held-to-maturity (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Securities held-to-maturity:
Total	$ 650,577	$ 715,004
Gross Unrecognized Gains	285	244
Gross Unrecognized (Losses)	(86,735)	(100,796)
Estimated Fair Value	564,127	614,452
Allowance for credit loss current period	(12)	(14)
Agency mortgage-backed securities
Securities held-to-maturity:
Total	618,374	677,381
Gross Unrecognized Gains	282	235
Gross Unrecognized (Losses)	(86,011)	(99,977)
Estimated Fair Value	532,645	577,639
Municipals - exempt from Federal tax
Securities held-to-maturity:
Total	32,203	37,623
Gross Unrecognized Gains	3	9
Gross Unrecognized (Losses)	(724)	(819)
Estimated Fair Value	31,482	36,813
Allowance for credit loss current period	$ (12)	$ (14)

Securities - Securities with Un

Securities - Securities with Unrealized Losses - Securities Held-to-maturity (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Securities, Fair Value
Less Than 12 Months	$ 4,926	$ 489,596
12 Months or More	437,710
Total	442,636	489,596
Less Than 12 Months	9,790	167,271
12 Months or More	533,766	429,257
Total	543,556	596,528
Securities, Unrealized (Losses)
Less Than 12 Months	40	16,117
12 Months or More	(9,894)
Total	(9,934)	(16,117)
Less Than 12 Months	(176)	(13,685)
12 Months or More	(86,559)	(87,111)
Total	(86,735)	(100,796)
Agency mortgage-backed securities
Securities, Fair Value
Less Than 12 Months		71,122
12 Months or More	60,267
Total	60,267	71,122
Less Than 12 Months		136,264
12 Months or More	520,615	429,257
Total	520,615	565,521
Securities, Unrealized (Losses)
Less Than 12 Months		5,794
12 Months or More	(4,313)
Total	(4,313)	(5,794)
Less Than 12 Months		(12,866)
12 Months or More	(86,011)	(87,111)
Total	(86,011)	(99,977)
U.S. Treasury
Securities, Fair Value
Less Than 12 Months	4,926	418,474
12 Months or More	377,443
Total	382,369	418,474
Securities, Unrealized (Losses)
Less Than 12 Months	40	10,323
12 Months or More	(5,581)
Total	(5,621)	(10,323)
Municipals - exempt from Federal tax
Securities, Fair Value
Less Than 12 Months	9,790	31,007
12 Months or More	13,151
Total	22,941	31,007
Securities, Unrealized (Losses)
Less Than 12 Months	(176)	(819)
12 Months or More	(548)
Total	$ (724)	$ (819)

Securities - Additional Informa

Securities - Additional Information (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2023 USD ($) item security	Dec. 31, 2022 USD ($)
Additional Information
The number of holdings of securities of any one issuer other than the U.S. Government and its sponsored entities \| security	0
Holdings of securities as percentage of shareholders' equity, considered as threshold for disclosure purpose	10%
Number of securities held \| item	437
Number of available for sale securities held \| item	164
Number of held to maturity securities held \| item	273
Number of securities with fair values below amortized cost \| item	406
Less Than 12 Months	$ 4,926	$ 489,596
Less Than 12 Months	9,790	167,271
12 Months or More	533,766	429,257
Agency mortgage-backed securities
Additional Information
Less Than 12 Months		71,122
Less Than 12 Months		136,264
12 Months or More	520,615	429,257
U.S. Treasury
Additional Information
Less Than 12 Months	4,926	418,474
Municipals - exempt from Federal tax
Additional Information
Less Than 12 Months	9,790	$ 31,007
12 Months or More	$ 13,151

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	Dec. 31, 2023	Dec. 31, 2022
Available-for-sale, Amortized Cost
Due three months or less	$ 19,953
Due after three months through one year	193,476
Due after one through five years	174,561
Agency mortgage-backed securities	64,580
Total	452,570	$ 505,713
Available-for-sale, Estimated Fair Value
Due 3 months or less	19,920
Due after three months through one year	191,662
Due after one year through five years	170,787
Agency mortgage-backed securities	60,267
Total	$ 442,636	$ 489,596

Securities - Amortized Cost a_4

Securities - Amortized Cost and Fair Value of Debt Securities by Contractual Maturity - Securities Held-to-maturity (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Held-to-maturity, Estimated Fair Value
Total	$ 564,127	$ 614,452
Allowance for credit loss current period	$ 12	$ 14

Securities - Securities Pledged

Securities - Securities Pledged to Secure Public Deposits and for Other Purposes (Details) - USD ($)	Dec. 31, 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	$ 1,041,608,000	$ 66,272,000

Securities - Roll-forward by ma

Securities - Roll-forward by major security type (Details)	12 Months Ended
Securities - Roll-forward by major security type (Details)	Dec. 31, 2023 USD ($)
Securities
Allowance for credit loss current period - Beginning Balance	$ 14,000
Recapture of credit losses	(2,000)
Allowance for credit loss current period - Ending Balance	$ 12,000

Loans and Allowance for Credi_3

Loans and Allowance for Credit Losses on Loans - Loans Balance (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Loans held-for-investment:
Total loan balance	$ 3,350,873,000	$ 3,299,067,000
Deferred loan fees, net	(495,000)	(517,000)
Loans, net of deferred fees	3,350,378,000	3,298,550,000	$ 3,087,326,000
Allowance for credit losses on loans	(47,958,000)	(47,512,000)	(43,290,000)	$ (44,400,000)
Loans, net	3,302,420,000	3,251,038,000
Commercial. \| Commercial
Loans held-for-investment:
Total loan balance	463,778,000	533,915,000
Allowance for credit losses on loans	(5,853,000)	(6,617,000)	(8,414,000)	(11,587,000)
Real estate \| CRE - Owner Occupied
Loans held-for-investment:
Total loan balance	583,253,000	614,663,000
Allowance for credit losses on loans	(5,121,000)	(5,751,000)	(7,954,000)	(8,560,000)
Real estate \| CRE - Non-Owner Occupied
Loans held-for-investment:
Total loan balance	1,256,590,000	1,066,368,000
Allowance for credit losses on loans	(25,323,000)	(22,135,000)	(17,125,000)	(16,416,000)
Real estate \| Land & Construction
Loans held-for-investment:
Total loan balance	140,513,000	163,577,000
Allowance for credit losses on loans	(2,352,000)	(2,941,000)	(1,831,000)	(2,509,000)
Real estate \| Home Equity
Loans held-for-investment:
Total loan balance	119,125,000	120,724,000
Allowance for credit losses on loans	(644,000)	(666,000)	(864,000)	(1,297,000)
Real estate \| Multi-Family
Loans held-for-investment:
Total loan balance	269,734,000	244,882,000
Allowance for credit losses on loans	(5,053,000)	(3,366,000)	(2,796,000)	(2,804,000)
Real estate \| Residential Mortgage
Loans held-for-investment:
Total loan balance	496,961,000	537,905,000
Allowance for credit losses on loans	(3,425,000)	(5,907,000)	(4,132,000)	(943,000)
Consumer \| Consumer and Other
Loans held-for-investment:
Total loan balance	20,919,000	17,033,000
Allowance for credit losses on loans	$ (187,000)	$ (129,000)	$ (174,000)	$ (284,000)

Loans and Allowance for Credi_4

Loans and Allowance for Credit Losses on Loans - Changes in the Allowance for Loan Losses (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning of period balance	$ 47,512,000	$ 43,290,000	$ 44,400,000
Charge-offs	(1,011,000)	(434,000)	(520,000)
Recoveries	708,000	3,890,000	2,544,000
Net (charge-offs) recoveries	(303,000)	3,456,000	2,024,000
Provision for (recapture of) credit losses on loans	749,000	766,000	(3,134,000)
End of period balance	47,958,000	47,512,000	43,290,000
Commercial. \| Commercial
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning of period balance	6,617,000	8,414,000	11,587,000
Charge-offs	(750,000)	(434,000)	(520,000)
Recoveries	346,000	427,000	1,354,000
Net (charge-offs) recoveries	(404,000)	(7,000)	834,000
Provision for (recapture of) credit losses on loans	(360,000)	(1,790,000)	(4,007,000)
End of period balance	5,853,000	6,617,000	8,414,000
Real estate \| CRE - Owner Occupied
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning of period balance	5,751,000	7,954,000	8,560,000
Recoveries	11,000	15,000	16,000
Net (charge-offs) recoveries	11,000	15,000	16,000
Provision for (recapture of) credit losses on loans	(641,000)	(2,218,000)	(622,000)
End of period balance	5,121,000	5,751,000	7,954,000
Real estate \| CRE - Non-Owner Occupied
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning of period balance	22,135,000	17,125,000	16,416,000
Provision for (recapture of) credit losses on loans	3,188,000	5,010,000	709,000
End of period balance	25,323,000	22,135,000	17,125,000
Real estate \| Land & Construction
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning of period balance	2,941,000	1,831,000	2,509,000
Recoveries			884,000
Net (charge-offs) recoveries			884,000
Provision for (recapture of) credit losses on loans	(589,000)	1,110,000	(1,562,000)
End of period balance	2,352,000	2,941,000	1,831,000
Real estate \| Home Equity
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning of period balance	666,000	864,000	1,297,000
Charge-offs	(246,000)
Recoveries	351,000	105,000	93,000
Net (charge-offs) recoveries	105,000	105,000	93,000
Provision for (recapture of) credit losses on loans	(127,000)	(303,000)	(526,000)
End of period balance	644,000	666,000	864,000
Real estate \| Multi-Family
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning of period balance	3,366,000	2,796,000	2,804,000
Provision for (recapture of) credit losses on loans	1,687,000	570,000	(8,000)
End of period balance	5,053,000	3,366,000	2,796,000
Real estate \| Residential Mortgage
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning of period balance	5,907,000	4,132,000	943,000
Provision for (recapture of) credit losses on loans	(2,482,000)	1,775,000	3,189,000
End of period balance	3,425,000	5,907,000	4,132,000
Consumer \| Consumer and Other
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning of period balance	129,000	174,000	284,000
Charge-offs	(15,000)
Recoveries		3,343,000	197,000
Net (charge-offs) recoveries	(15,000)	3,343,000	197,000
Provision for (recapture of) credit losses on loans	73,000	(3,388,000)	(307,000)
End of period balance	$ 187,000	$ 129,000	$ 174,000

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	Dec. 31, 2023	Dec. 31, 2022
Nonperforming Loans by Class
Nonaccrual with no Specific Allowance for Credit Losses	$ 6,528	$ 416
Nonaccrual with Specific Allowance for Credit	290	324
Restructured and loans over 90 days past due and still accruing	889	1,685
Total	7,707	2,425
Commercial. \| Commercial
Nonperforming Loans by Class
Nonaccrual with no Specific Allowance for Credit Losses	946	318
Nonaccrual with Specific Allowance for Credit	290	324
Restructured and loans over 90 days past due and still accruing	889	349
Total	2,125	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 \| Land & Construction
Nonperforming Loans by Class
Nonaccrual with no Specific Allowance for Credit Losses	4,661
Total	4,661
Real estate \| Home Equity
Nonperforming Loans by Class
Nonaccrual with no Specific Allowance for Credit Losses	142	98
Total	142	$ 98
Real estate \| Residential Mortgage
Nonperforming Loans by Class
Nonaccrual with no Specific Allowance for Credit Losses	779
Total	$ 779

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 ($)	Dec. 31, 2023	Dec. 31, 2022
Aging of Past Due Loans by Class of Loans
Total loan balance	$ 3,350,873,000	$ 3,299,067,000
30-59 Days Past Due
Aging of Past Due Loans by Class of Loans
Total loan balance	12,726,000	11,690,000
60-89 Days Past Due
Aging of Past Due Loans by Class of Loans
Total loan balance	2,540,000	3,337,000
90 Days or Greater Past Due
Aging of Past Due Loans by Class of Loans
Total loan balance	5,891,000	2,039,000
Past due
Aging of Past Due Loans by Class of Loans
Total loan balance	21,157,000	17,066,000
Current
Aging of Past Due Loans by Class of Loans
Total loan balance	3,329,716,000	3,282,001,000
Commercial. \| Commercial
Aging of Past Due Loans by Class of Loans
Total loan balance	463,778,000	533,915,000
Commercial. \| Commercial \| 30-59 Days Past Due
Aging of Past Due Loans by Class of Loans
Total loan balance	6,688,000	7,236,000
Commercial. \| Commercial \| 60-89 Days Past Due
Aging of Past Due Loans by Class of Loans
Total loan balance	2,030,000	2,519,000
Commercial. \| Commercial \| 90 Days or Greater Past Due
Aging of Past Due Loans by Class of Loans
Total loan balance	1,264,000	703,000
Commercial. \| Commercial \| Past due
Aging of Past Due Loans by Class of Loans
Total loan balance	9,982,000	10,458,000
Commercial. \| Commercial \| Current
Aging of Past Due Loans by Class of Loans
Total loan balance	453,796,000	523,457,000
Real estate \| CRE - Owner Occupied
Aging of Past Due Loans by Class of Loans
Total loan balance	583,253,000	614,663,000
Real estate \| CRE - Owner Occupied \| 30-59 Days Past Due
Aging of Past Due Loans by Class of Loans
Total loan balance		252,000
Real estate \| CRE - Owner Occupied \| Past due
Aging of Past Due Loans by Class of Loans
Total loan balance		252,000
Real estate \| CRE - Owner Occupied \| Current
Aging of Past Due Loans by Class of Loans
Total loan balance	583,253,000	614,411,000
Real estate \| CRE - Non-Owner Occupied
Aging of Past Due Loans by Class of Loans
Total loan balance	1,256,590,000	1,066,368,000
Real estate \| CRE - Non-Owner Occupied \| 30-59 Days Past Due
Aging of Past Due Loans by Class of Loans
Total loan balance	1,289,000
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	1,289,000	1,336,000
Real estate \| CRE - Non-Owner Occupied \| Current
Aging of Past Due Loans by Class of Loans
Total loan balance	1,255,301,000	1,065,032,000
Real estate \| Land & Construction
Aging of Past Due Loans by Class of Loans
Total loan balance	140,513,000	163,577,000
Real estate \| Land & Construction \| 30-59 Days Past Due
Aging of Past Due Loans by Class of Loans
Total loan balance	955,000
Real estate \| Land & Construction \| 90 Days or Greater Past Due
Aging of Past Due Loans by Class of Loans
Total loan balance	3,706,000
Real estate \| Land & Construction \| Past due
Aging of Past Due Loans by Class of Loans
Total loan balance	4,661,000
Real estate \| Land & Construction \| Current
Aging of Past Due Loans by Class of Loans
Total loan balance	135,852,000	163,577,000
Real estate \| Home Equity
Aging of Past Due Loans by Class of Loans
Total loan balance	119,125,000	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	142,000
Real estate \| Home Equity \| Past due
Aging of Past Due Loans by Class of Loans
Total loan balance	142,000	98,000
Real estate \| Home Equity \| Current
Aging of Past Due Loans by Class of Loans
Total loan balance	118,983,000	120,626,000
Real estate \| Multi-Family
Aging of Past Due Loans by Class of Loans
Total loan balance	269,734,000	244,882,000
Real estate \| Multi-Family \| Current
Aging of Past Due Loans by Class of Loans
Total loan balance	269,734,000	244,882,000
Real estate \| Residential Mortgage
Aging of Past Due Loans by Class of Loans
Total loan balance	496,961,000	537,905,000
Real estate \| Residential Mortgage \| 30-59 Days Past Due
Aging of Past Due Loans by Class of Loans
Total loan balance	3,794,000	4,202,000
Real estate \| Residential Mortgage \| 60-89 Days Past Due
Aging of Past Due Loans by Class of Loans
Total loan balance	510,000	720,000
Real estate \| Residential Mortgage \| 90 Days or Greater Past Due
Aging of Past Due Loans by Class of Loans
Total loan balance	779,000
Real estate \| Residential Mortgage \| Past due
Aging of Past Due Loans by Class of Loans
Total loan balance	5,083,000	4,922,000
Real estate \| Residential Mortgage \| Current
Aging of Past Due Loans by Class of Loans
Total loan balance	491,878,000	532,983,000
Consumer \| Consumer and Other
Aging of Past Due Loans by Class of Loans
Total loan balance	20,919,000	17,033,000
Consumer \| Consumer and Other \| Current
Aging of Past Due Loans by Class of Loans
Total loan balance	$ 20,919,000	$ 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 ($)	Dec. 31, 2023	Dec. 31, 2022
Aging of Past Due Loans by Class of Loans
Total loan balance	$ 3,350,873,000	$ 3,299,067,000
Nonaccrual loans	7,707,000	2,425,000
30 days or greater past due
Aging of Past Due Loans by Class of Loans
Nonaccrual loans	6,100,000	479,000
Less than 30 days past due
Aging of Past Due Loans by Class of Loans
Nonaccrual loans	718,000	261,000
Past due
Aging of Past Due Loans by Class of Loans
Total loan balance	$ 21,157,000	$ 17,066,000

Loans and Allowance for Credi_8

Loans and Allowance for Credit Losses on Loans - Credit Quality Indicators (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Loans
2023/ 2022	$ 455,535,000	$ 735,274,000
2022/ 2021	642,395,000	874,235,000
2021/ 2020	757,210,000	161,375,000
2020/ 2019	128,649,000	240,466,000
2019/ 2018	217,307,000	155,623,000
Prior Periods	743,954,000	680,984,000
Revolving	405,823,000	451,110,000
Total loan balance	3,350,873,000	3,299,067,000
Balance to report	3,302,420,000	3,251,038,000
Loan classified as loss
Loans
Balance to report	0	0
Risk Grades
Loans
2023/ 2022	455,535,000	735,274,000
2022/ 2021	642,395,000	874,235,000
2021/ 2020	757,210,000	161,375,000
2020/ 2019	128,649,000	240,466,000
2019/ 2018	217,307,000	155,623,000
Prior Periods	743,954,000	680,984,000
Revolving	405,823,000	451,110,000
Total loan balance	3,350,873,000	3,299,067,000
Risk Grades \| Pass
Loans
2023/ 2022	449,132,000	731,862,000
2022/ 2021	637,785,000	870,023,000
2021/ 2020	749,811,000	159,659,000
2020/ 2019	127,132,000	236,243,000
2019/ 2018	208,280,000	153,618,000
Prior Periods	715,749,000	653,756,000
Revolving	398,528,000	437,326,000
Total loan balance	3,286,417,000	3,242,487,000
Risk Grades \| Special Mention
Loans
2023/ 2022	4,270,000	3,408,000
2022/ 2021	1,342,000	3,175,000
2021/ 2020	3,344,000	1,716,000
2020/ 2019	462,000	4,078,000
2019/ 2018	7,626,000	1,482,000
Prior Periods	13,072,000	20,031,000
Revolving	2,577,000	8,146,000
Total loan balance	32,693,000	42,036,000
Risk Grades \| Substandard
Loans
2023/ 2022	2,133,000	4,000
2022/ 2021	2,489,000	660,000
2020/ 2019	100,000	145,000
2019/ 2018	1,285,000	193,000
Prior Periods	14,362,000	7,164,000
Revolving	4,576,000	5,638,000
Total loan balance	24,945,000	13,804,000
Risk Grades \| Substandard-Nonaccrual
Loans
2022/ 2021	779,000	377,000
2021/ 2020	4,055,000
2020/ 2019	955,000
2019/ 2018	116,000	330,000
Prior Periods	771,000	33,000
Revolving	142,000
Total loan balance	6,818,000	740,000
Commercial. \| Commercial
Loans
2023/ 2022	101,498,000	106,381,000
2022/ 2021	27,858,000	38,091,000
2021/ 2020	20,122,000	24,598,000
2020/ 2019	15,029,000	20,540,000
2019/ 2018	12,327,000	12,419,000
Prior Periods	27,874,000	27,293,000
Revolving	259,070,000	304,593,000
Total loan balance	463,778,000	533,915,000
Commercial. \| Commercial \| Pass
Loans
2023/ 2022	99,387,000	102,969,000
2022/ 2021	25,250,000	36,752,000
2021/ 2020	19,732,000	24,406,000
2020/ 2019	14,929,000	19,272,000
2019/ 2018	11,893,000	12,089,000
Prior Periods	22,134,000	21,127,000
Revolving	258,461,000	293,546,000
Total loan balance	451,786,000	510,161,000
Commercial. \| Commercial \| Special Mention
Loans
2023/ 2022	2,107,000	3,408,000
2022/ 2021	1,092,000	1,060,000
2021/ 2020	41,000	192,000
2020/ 2019		1,123,000
2019/ 2018	133,000
Prior Periods	1,134,000	6,031,000
Revolving	467,000	5,551,000
Total loan balance	4,974,000	17,365,000
Commercial. \| Commercial \| Substandard
Loans
2023/ 2022	4,000	4,000
2022/ 2021	1,516,000
2020/ 2019	100,000	145,000
2019/ 2018	185,000
Prior Periods	3,835,000	102,000
Revolving	142,000	5,496,000
Total loan balance	5,782,000	5,747,000
Commercial. \| Commercial \| Substandard-Nonaccrual
Loans
2022/ 2021		279,000
2021/ 2020	349,000
2019/ 2018	116,000	330,000
Prior Periods	771,000	33,000
Total loan balance	1,236,000	642,000
Real estate \| CRE - Owner Occupied
Loans
2023/ 2022	32,993,000	92,689,000
2022/ 2021	86,938,000	118,959,000
2021/ 2020	113,854,000	75,874,000
2020/ 2019	68,646,000	61,007,000
2019/ 2018	53,985,000	58,373,000
Prior Periods	216,535,000	199,003,000
Revolving	10,302,000	8,758,000
Total loan balance	583,253,000	614,663,000
Real estate \| CRE - Owner Occupied \| Pass
Loans
2023/ 2022	32,993,000	92,689,000
2022/ 2021	86,688,000	116,266,000
2021/ 2020	110,613,000	75,007,000
2020/ 2019	68,184,000	59,887,000
2019/ 2018	52,885,000	58,180,000
Prior Periods	214,729,000	194,584,000
Revolving	10,302,000	8,758,000
Total loan balance	576,394,000	605,371,000
Real estate \| CRE - Owner Occupied \| Special Mention
Loans
2022/ 2021	250,000	2,033,000
2021/ 2020	3,241,000	867,000
2020/ 2019	462,000	1,120,000
Prior Periods	1,802,000	4,410,000
Total loan balance	5,755,000	8,430,000
Real estate \| CRE - Owner Occupied \| Substandard
Loans
2022/ 2021		660,000
2019/ 2018	1,100,000	193,000
Prior Periods	4,000	9,000
Total loan balance	1,104,000	862,000
Real estate \| CRE - Non-Owner Occupied
Loans
2023/ 2022	225,505,000	239,556,000
2022/ 2021	243,080,000	278,051,000
2021/ 2020	267,870,000	31,848,000
2020/ 2019	28,315,000	101,854,000
2019/ 2018	100,141,000	63,905,000
Prior Periods	388,206,000	347,909,000
Revolving	3,473,000	3,245,000
Total loan balance	1,256,590,000	1,066,368,000
Real estate \| CRE - Non-Owner Occupied \| Pass
Loans
2023/ 2022	225,505,000	239,556,000
2022/ 2021	243,080,000	278,051,000
2021/ 2020	267,870,000	31,848,000
2020/ 2019	28,315,000	101,854,000
2019/ 2018	92,648,000	63,905,000
Prior Periods	370,552,000	337,048,000
Revolving	3,199,000	3,245,000
Total loan balance	1,231,169,000	1,055,507,000
Real estate \| CRE - Non-Owner Occupied \| Special Mention
Loans
2019/ 2018	7,493,000
Prior Periods	10,040,000	4,883,000
Total loan balance	17,533,000	4,883,000
Real estate \| CRE - Non-Owner Occupied \| Substandard
Loans
Prior Periods	7,614,000	5,978,000
Revolving	274,000
Total loan balance	7,888,000	5,978,000
Real estate \| Land & Construction
Loans
2023/ 2022	44,434,000	62,241,000
2022/ 2021	52,862,000	72,847,000
2021/ 2020	31,125,000	22,459,000
2020/ 2019	10,228,000	6,030,000
2019/ 2018	1,864,000
Total loan balance	140,513,000	163,577,000
Real estate \| Land & Construction \| Pass
Loans
2023/ 2022	40,142,000	62,241,000
2022/ 2021	52,862,000	72,847,000
2021/ 2020	27,419,000	22,459,000
2020/ 2019	9,273,000	6,030,000
2019/ 2018	1,864,000
Total loan balance	131,560,000	163,577,000
Real estate \| Land & Construction \| Special Mention
Loans
2023/ 2022	2,163,000
Total loan balance	2,163,000
Real estate \| Land & Construction \| Substandard
Loans
2023/ 2022	2,129,000
Total loan balance	2,129,000
Real estate \| Land & Construction \| Substandard-Nonaccrual
Loans
2021/ 2020	3,706,000
2020/ 2019	955,000
Total loan balance	4,661,000
Real estate \| Home Equity
Loans
2022/ 2021		98,000
Prior Periods	1,463,000	188,000
Revolving	117,662,000	120,438,000
Total loan balance	119,125,000	120,724,000
Real estate \| Home Equity \| Pass
Loans
Prior Periods	1,463,000	44,000
Revolving	111,250,000	117,950,000
Total loan balance	112,713,000	117,994,000
Real estate \| Home Equity \| Special Mention
Loans
Revolving	2,110,000	2,346,000
Total loan balance	2,110,000	2,346,000
Real estate \| Home Equity \| Substandard
Loans
Prior Periods		144,000
Revolving	4,160,000	142,000
Total loan balance	4,160,000	286,000
Real estate \| Home Equity \| Substandard-Nonaccrual
Loans
2022/ 2021		98,000
Revolving	142,000
Total loan balance	142,000	98,000
Real estate \| Multi-Family
Loans
2023/ 2022	47,089,000	42,111,000
2022/ 2021	41,112,000	69,824,000
2021/ 2020	55,557,000	5,528,000
2020/ 2019	5,394,000	43,183,000
2019/ 2018	42,129,000	15,356,000
Prior Periods	78,098,000	68,700,000
Revolving	355,000	180,000
Total loan balance	269,734,000	244,882,000
Real estate \| Multi-Family \| Pass
Loans
2023/ 2022	47,089,000	42,111,000
2022/ 2021	41,112,000	69,824,000
2021/ 2020	55,557,000	4,871,000
2020/ 2019	5,394,000	42,412,000
2019/ 2018	42,129,000	15,356,000
Prior Periods	75,890,000	66,380,000
Revolving	355,000	180,000
Total loan balance	267,526,000	241,134,000
Real estate \| Multi-Family \| Special Mention
Loans
2021/ 2020		657,000
2020/ 2019		771,000
Prior Periods		2,320,000
Total loan balance		3,748,000
Real estate \| Multi-Family \| Substandard
Loans
Prior Periods	2,208,000
Total loan balance	2,208,000
Real estate \| Residential Mortgage
Loans
2023/ 2022	1,684,000	191,907,000
2022/ 2021	189,169,000	296,270,000
2021/ 2020	268,617,000	1,068,000
2020/ 2019	1,037,000	7,846,000
2019/ 2018	6,861,000	4,206,000
Prior Periods	29,593,000	36,608,000
Total loan balance	496,961,000	537,905,000
Real estate \| Residential Mortgage \| Pass
Loans
2023/ 2022	1,684,000	191,907,000
2022/ 2021	187,417,000	296,270,000
2021/ 2020	268,617,000	1,068,000
2020/ 2019	1,037,000	6,788,000
2019/ 2018	6,861,000	2,724,000
Prior Periods	28,892,000	33,290,000
Total loan balance	494,508,000	532,047,000
Real estate \| Residential Mortgage \| Special Mention
Loans
2020/ 2019		1,058,000
2019/ 2018		1,482,000
Prior Periods		2,387,000
Total loan balance		4,927,000
Real estate \| Residential Mortgage \| Substandard
Loans
2022/ 2021	973,000
Prior Periods	701,000	931,000
Total loan balance	1,674,000	931,000
Real estate \| Residential Mortgage \| Substandard-Nonaccrual
Loans
2022/ 2021	779,000
Total loan balance	779,000
Consumer \| Consumer and Other
Loans
2023/ 2022	2,332,000	389,000
2022/ 2021	1,376,000	95,000
2021/ 2020	65,000
2020/ 2019		6,000
2019/ 2018		1,364,000
Prior Periods	2,185,000	1,283,000
Revolving	14,961,000	13,896,000
Total loan balance	20,919,000	17,033,000
Consumer \| Consumer and Other \| Pass
Loans
2023/ 2022	2,332,000	389,000
2022/ 2021	1,376,000	13,000
2021/ 2020	3,000
2019/ 2018		1,364,000
Prior Periods	2,089,000	1,283,000
Revolving	14,961,000	13,647,000
Total loan balance	20,761,000	16,696,000
Consumer \| Consumer and Other \| Special Mention
Loans
2022/ 2021		82,000
2021/ 2020	62,000
2020/ 2019		6,000
Prior Periods	96,000
Revolving		249,000
Total loan balance	$ 158,000	$ 337,000

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	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Current period gross charge-offs
12/31/2023	$ 35
12/31/2022	95
12/31/2019	354
2018 and Prior	281
Revolving Loans	246
Total	1,011	$ 434	$ 520
Commercial. \| Commercial
Current period gross charge-offs
12/31/2023	35
12/31/2022	95
12/31/2019	339
2018 and Prior	281
Total	750	$ 434	$ 520
Real estate \| Home Equity
Current period gross charge-offs
Revolving Loans	246
Total	246
Consumer \| Consumer and Other
Current period gross charge-offs
12/31/2019	15
Total	$ 15

Loans and Allowance for Cred_10

Loans and Allowance for Credit Losses on Loans - Amortized Cost Basis of Collateral-dependent Loans (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Business Assets
Financing Receivable, Recorded Investment, Past Due [Line Items]
Collateral dependent loans	$ 290,000	$ 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) $ in Thousands	12 Months Ended
	Dec. 31, 2023 USD ($) loan
Financing Receivable, Modifications [Line Items]
Number of loans for which multiple concessions are provided \| loan	1
Total Class of Financing Receivables	0.01%
Principal Forgiveness
Financing Receivable, Modifications [Line Items]
Total	$ 7
Payment Delay
Financing Receivable, Modifications [Line Items]
Total	63
Combination Term Extension and Interest Rate Reduction
Financing Receivable, Modifications [Line Items]
Total	$ 3
Commercial
Financing Receivable, Modifications [Line Items]
Total Class of Financing Receivables	0.01%
Commercial \| Payment Delay
Financing Receivable, Modifications [Line Items]
Total	$ 63
Commercial \| Combination Term Extension and Interest Rate Reduction
Financing Receivable, Modifications [Line Items]
Total	3
Commercial. \| Commercial \| Principal Forgiveness
Financing Receivable, Modifications [Line Items]
Total	$ 7

Loans and Allowance for Cred_12

Loans and Allowance for Credit Losses on Loans - Performance of loans that have been modified (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2023 USD ($)
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total financing receivable modified	$ 46
30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total financing receivable modified	45
60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total financing receivable modified	1
Commercial. \| Commercial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total financing receivable modified	46
Commercial. \| Commercial \| 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total financing receivable modified	45
Commercial. \| Commercial \| 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total financing receivable modified	$ 1

Loans and Allowance for Cred_13

Loans and Allowance for Credit Losses on Loans - Financial effect of the loan modification (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2023 USD ($)
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
Principal Forgiveness [Member]
Financing Receivable, Modifications [Line Items]
Principal Forgiveness	$ 7
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	$ 7

Loan Servicing - SBA Loans (Det

Loan Servicing - SBA Loans (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Loans and Allowance for Credit Losses on Loans
Serviced SBA loans sold to secondary market	$ 55,845,000	$ 64,819,000	$ 73,256,000
Weighted average servicing rate for loans serviced (as a percent)	1.09%	1.10%	1.11%

Loan Servicing - Activity for L

Loan Servicing - Activity for Loan Servicing Rights (Details) - Loan servicing rights - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Activity for Loan Servicing Rights
Balance, beginning of year	$ 549	$ 655	$ 531
Additions	126	124	384
Amortization	(260)	(230)	(260)
Balance, end of year	$ 415	$ 549	$ 655

Loan Servicing - Loan Servicing

Loan Servicing - Loan Servicing Rights - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Loan Servicing
Carrying amount/fair value	$ 827,000	$ 813,000	$ 1,101,000
Prepayment speed assumption (annual rate) (as a percent)	17.18%	15.12%	13.40%
Residual cash flow discount rate assumption (annual) (as a percent)	16.59%	20.75%	13.88%
Loan servicing rights
Loan Servicing
Valuation allowance	$ 0	$ 0	$ 0

Loan Servicing - Activity for I

Loan Servicing - Activity for IQ Strip Receivables (Details) - I/O strip receivables - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Activity for I/O Strip Receivables
Balance, beginning of year	$ 152	$ 221	$ 305
Unrealized loss	(35)	(69)	(84)
Balance, end of year	$ 117	$ 152	$ 221

Premises and Equipment - Premis

Premises and Equipment - Premises and Equipment, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Premises and Equipment
Premises and equipment, gross	$ 27,651	$ 25,817
Accumulated depreciation and amortization	(17,794)	(16,516)
Premises and equipment, net	9,857	9,301
Building
Premises and Equipment
Premises and equipment, gross	3,637	3,508
Land
Premises and Equipment
Premises and equipment, gross	2,900	2,900
Furniture and equipment
Premises and Equipment
Premises and equipment, gross	14,347	13,812
Leasehold improvements
Premises and Equipment
Premises and equipment, gross	$ 6,767	$ 5,597

Premises and Equipment - Deprec

Premises and Equipment - Depreciation and Amortization Expense (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Premises and Equipment
Depreciation and amortization	$ 1,115,000	$ 1,121,000	$ 1,072,000

Leases (Details)

Leases (Details) - USD ($)	12 Months Ended
Leases (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Leases
Operating Lease Cost (Cost resulting from lease payments)	$ 6,763,000	$ 6,625,000
Operating Lease - Operating Cash Flows (Fixed Payments)	6,701,000	4,948,000
Operating Lease - ROU assets	$ 31,674,000	$ 33,031,000
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Interest Receivable and Other Assets	Interest Receivable and Other Assets
Operating Lease - Liabilities	$ 31,674,000	$ 33,031,000
Operating Lease, Liability, Statement of Financial Position [Extensible List]	Accrued Interest Payable and Other Liabilities	Accrued Interest Payable and Other Liabilities
Weighted Average Lease Term - Operating Leases	5 years 10 months 17 days	6 years 7 months 6 days
Weighted Average Discount Rate - Operating Leases	4.98%	4.49%

Leases - Maturity Analysis (Det

Leases - Maturity Analysis (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Operating Lease Payments Due
2024	$ 6,661,000
2025	6,278,000
2026	5,698,000
2027	5,552,000
2028	4,971,000
Thereafter	7,532,000
Total undiscounted cash flows	36,692,000
Discount on cash flows	(5,018,000)
Total lease liability	$ 31,674,000	$ 33,031,000

Goodwill and Other Intangible_3

Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Goodwill
Goodwill	$ 167,631,000	$ 167,631,000	$ 167,631,000
BVF/CSNK
Goodwill
Goodwill acquired	13,044,000
Focus
Goodwill
Goodwill acquired	32,619,000
Tri Valley Bank
Goodwill
Goodwill acquired	13,819,000
United American Bank
Goodwill
Goodwill acquired	24,271,000
Presidio bank
Goodwill
Goodwill acquired	83,878,000
Banking
Goodwill
Goodwill	154,587,000	154,587,000	154,587,000
Factoring
Goodwill
Goodwill	$ 13,044,000	$ 13,044,000	$ 13,044,000

Goodwill and Other Intangible_4

Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Other Intangible Assets
Gross Carrying amount	$ 27,033	$ 27,033
Accumulated Amortization	(18,406)	(16,000)
Total	8,627	11,033
Core deposit intangibles
Other Intangible Assets
Gross Carrying amount	25,023	25,023
Accumulated Amortization	(16,646)	(14,429)
Total	8,377	10,594
Customer relationship and brokered relationship
Other Intangible Assets
Gross Carrying amount	1,900	1,900
Accumulated Amortization	(1,741)	(1,551)
Total	159	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	Dec. 31, 2023	Dec. 31, 2022
Estimated Amortization Expense
2024	$ 2,187
2025	1,813
2026	1,530
2027	1,456
2028	1,017
Thereafter	624
Total	8,627	$ 11,033
Core deposit
Estimated Amortization Expense
2024	2,023
2025	1,795
2026	1,512
2027	1,438
2028	999
Thereafter	610
Total	8,377	10,594
Customer relationship and brokered relationship
Estimated Amortization Expense
2024	159
Total	159	349
Below/ (Above) market-value lease
Estimated Amortization Expense
2024	5
2025	18
2026	18
2027	18
2028	18
Thereafter	14
Total	$ 91	$ 90

Goodwill and Other Intangible_6

Goodwill and Other Intangible Assets - Impairment of Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Impairment of Intangible Assets
Impairment of intangible assets	$ 0	$ 0

Deposits - Scheduled Maturities

Deposits - Scheduled Maturities of all Time Deposits (Details) $ in Thousands	Dec. 31, 2023 USD ($)
Scheduled Maturities of Time Deposits
2024	$ 453,017
2025	14,797
2026	1,283
2027	94
2029	281
Total	$ 469,472

Deposits - Time Deposits (Detai

Deposits - Time Deposits (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Deposits.
Time deposits, including deposits within the CDARS and brokered deposits, $250,000 or more	$ 192,228,000	$ 108,192,000

Deposits - Additional Informati

Deposits - Additional Information (Details) - USD ($)	12 Months Ended
Deposits - Additional Information (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Additional Information
ICS/CDARS deposits	$ 854,105,000	$ 30,374,000
Interest-bearing demand deposits	424,991,000	26,861,000
Money market accounts under ICS/CDARS program	189,925,000	192,000
Time deposits under ICS/CDARS program	239,189,000	3,321,000
Deposits from executive officers, directors, and their affiliates	468,000	712,000
Uninsured deposits	$ 2,010,000,000	$ 2,790,000,000
Percentage of uninsured deposits on total deposits	46%	64%
Brokered deposits	$ 0	$ 0
FHLB
Additional Information
Securities pledged as collateral	383,194,000	1,085,000
Amount outstanding	$ 0	$ 0

Borrowing Arrangements - Federa

Borrowing Arrangements - Federal Home Loan Bank Borrowings, Federal Reserve Bank Borrowings, and Available Lines of Credit (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Borrowing Arrangements
Loan balance	$ 3,350,378,000	$ 3,298,550,000	$ 3,087,326,000
FHLB
Borrowing Arrangements
Securities pledged as collateral	383,194,000	1,085,000
Amount outstanding	0	0
FHLB \| Line of credit \| FHLB of San Francisco
Borrowing Arrangements
Loan balance	1,217,249,000	254,243,000
Line of credit	$ 1,100,931,000	$ 162,631,000

Borrowing Arrangements - Fede_2

Borrowing Arrangements - Federal Reserve Bank Borrowings (Details) - Line of credit - FRB - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Borrowing Arrangements
Loans and securities pledged to as collateral	$ 1,658,642,000	$ 1,000,207,000
Line of credit	1,235,573,000	676,878,000
Amount outstanding	$ 0	$ 0

Borrowing Arrangements - Availa

Borrowing Arrangements - Available Lines of Credit (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Borrowing Arrangements
Federal funds purchased	$ 0	$ 0
Federal funds purchase arrangement
Borrowing Arrangements
Federal funds purchase arrangements available	$ 90,000,000

Borrowing Arrangements - Line o

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

Borrowing Arrangements - Securi

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

Borrowing Arrangements - Subord

Borrowing Arrangements - Subordinated Debt (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022	May 11, 2022
Subordinated Debt
Subordinated debt, net of issuance costs	$ 39,502,000	$ 39,350,000
Sub Debt Due 2032
Subordinated Debt
Principal amount			$ 40,000,000
Fixed interest rate (as a percent)			5%
Debt Issuance Costs	498,000
Subordinated debt, net of issuance costs	$ 39,502,000
Sub Debt Due 2027
Subordinated Debt
Principal amount			$ 40,000,000
Fixed interest rate (as a percent)			5.25%

Income Taxes - Income Tax (Bene

Income Taxes - Income Tax (Benefit) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Currently payable tax:
Federal	$ 15,888	$ 18,994	$ 10,207
State	9,241	8,798	7,988
Total currently payable	25,129	27,792	18,195
Deferred tax (benefit):
Federal	616	(1,237)	1,175
State	231	1,256	(1,200)
Total deferred tax	847	19	(25)
Income tax expense	$ 25,976	$ 27,811	$ 18,170

Income Taxes - Effective Tax Ra

Income Taxes - Effective Tax Rate (Details)	12 Months Ended
Income Taxes - Effective Tax Rate (Details)	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Effective tax rate differs from the federal statutory rate
Statutory Federal income tax rate (as a percent)	21%	21%	21%
State income taxes, net of federal tax benefit (as a percent)	8.30%	8.40%	8.10%
Stock option/restricted stock windfall tax benefit (as a percent)	0.10%	(0.10%)	(0.20%)
Increase in cash surrender value of life insurance (as a percent)	(0.50%)	(0.40%)	(0.60%)
Low income housing credits, net of investment losses (as a percent)	(0.20%)	(0.20%)	(0.30%)
Non-taxable interest income (as a percent)	(0.20%)	(0.20%)	(0.50%)
Split dollar term insurance (as a percent)	0%	0%	0.10%
ISO stock exercise (as a percent)	0%	0%	(0.10%)
Other, net (as a percent)	0.20%	1%	0.10%
Effective tax rate (as a percent)	28.70%	29.50%	27.60%

Income Taxes - Deferred Tax Ass

Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Deferred tax assets:
Allowance for credit losses on loans	$ 14,087,000	$ 14,171,000
Lease accounting	9,304,000	9,703,000
Defined postretirement benefit obligation	7,778,000	7,585,000
Accrued expenses	3,150,000	3,440,000
Securities available-for-sale	2,897,000	4,690,000
State income taxes	1,874,000	1,924,000
Stock compensation	1,501,000	1,363,000
Federal net operating loss carryforwards	1,403,000	1,719,000
Premises and equipment	1,375,000	1,677,000
California net operating loss carryforwards	986,000	1,106,000
Nonaccrual interest	135,000	174,000
Split-dollar life insurance benefit plan	71,000	49,000
Other	323,000	201,000
Total deferred tax assets	44,884,000	47,802,000
Deferred tax liabilities:
Lease accounting	(9,304,000)	(9,703,000)
Loan fees	(2,315,000)	(2,304,000)
Intangible liabilities	(1,639,000)	(1,940,000)
Prepaid expenses	(1,473,000)	(1,304,000)
FHLB stock	(156,000)	(156,000)
I/O strips	(30,000)	(40,000)
Other	(202,000)	(179,000)
Total deferred tax liabilities	(15,119,000)	(15,626,000)
Net deferred tax assets	$ 29,765,000	$ 32,176,000

Income Taxes - Operating Loss C

Income Taxes - Operating Loss Carryforward (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Operating Loss Carryforward
Net deferred tax assets	$ 29,765,000	$ 32,176,000
Federal \| IRS
Operating Loss Carryforward
Net operating loss carryforward	6,682,000
State \| California
Operating Loss Carryforward
Net operating loss carryforward	$ 11,505,000

Income Taxes - Carry Amounts of

Income Taxes - Carry Amounts of the Low Income Housing Investments (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Income Taxes
Low income housing investments	$ 2,794	$ 3,537
Future commitments	$ 494	$ 523

Income Taxes - Future Commitmen

Income Taxes - Future Commitments of the Low Income Housing Investments (Details) - Low income housing investments	Dec. 31, 2023 USD ($)
Future Commitments
2024	$ 14,000
2025 through 2026	$ 480,000

Income Taxes - Components of Lo

Income Taxes - Components of Low Income Housing Investment (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Income Taxes
Low income housing tax credits	$ 720,000	$ 839,000
Low income housing investment expense	$ 743,000	$ 842,000

Equity Plan - General Disclosur

Equity Plan - General Disclosures (Details) - shares	12 Months Ended
Equity Plan - General Disclosures (Details) - shares	Dec. 31, 2023	May 25, 2023	May 21, 2020	May 20, 2020
Equity Plan
Number of shares available for future grants	1,393,531
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
Employee Stock Option [Member]
Equity Plan
Vesting period	4 years
Expiration term	10 years
Stock options granted (in shares)	397,000
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)	397,000

Equity Plan - Stock Option Acti

Equity Plan - Stock Option Activity (Details) - Employee Stock Option [Member]	12 Months Ended
	Dec. 31, 2023 USD ($) $ / shares shares
Number of Shares
Outstanding at the beginning of the period (in shares)	2,527,173
Granted (in shares)	397,000
Exercised (in shares)	(220,666)
Forfeited or expired (in shares)	(66,151)
Outstanding at the end of the period (in shares)	2,637,356
Vested or expected to vest (in shares)	2,479,115
Exercisable at the end of the period (in shares)	1,947,357
Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share) \| $ / shares	$ 10.44
Granted (in dollars per share) \| $ / shares	7.45
Exercised (in dollars per share) \| $ / shares	5.53
Forfeited or expired (in dollars per share) \| $ / shares	10.26
Outstanding at the end of the period (in dollars per share) \| $ / shares	$ 10.40
Additional Information
Weighted Average Remaining Contractual Life - Outstanding at the end of the period (in years)	5 years 7 months 2 days
Weighted Average Remaining Contractual Life - Vested or expected to vest (in years)	5 years 7 months 2 days
Weighted Average Remaining Contractual Life - Exercisable at the end of the period (in years)	4 years 6 months 3 days
Aggregate Intrinsic Value - Outstanding at the end of the period (in dollars) \| $	$ 2,664,557
Aggregate Intrinsic Value - Vested or expected to vest (in dollars) \| $	2,504,684
Aggregate Intrinsic Value - Exercisable at the end of the period (in dollars) \| $	$ 1,811,470

Equity Plan - Information Relat

Equity Plan - Information Related to the Equity Plans for each of the Last Three Years (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Information Related to the Equity Plans
Cash received from option exercise	$ 1,220,000	$ 2,050,000	$ 1,469,000
Employee Stock Option [Member]
Information Related to the Equity Plans
Intrinsic value of options exercised	805,334	1,674,072	1,543,711
Cash received from option exercise	1,219,286	2,049,587	1,469,255
Tax benefit realized from option exercises	$ 20,527	$ 180,414	$ 153,745
Weighted average fair value of options granted (in dollars per share)	$ 1.34	$ 2.22	$ 2.31

Equity Plan - Unrecognized Comp

Equity Plan - Unrecognized Compensation Cost -Nonvested Stock Options (Details)	12 Months Ended
	Dec. 31, 2023 USD ($)
Employee Stock Option [Member]
Unrecognized Compensation Cost
Total unrecognized compensation cost related to nonvested stock options granted	$ 1,203,000
Expected weighted-average period for recognition of compensation costs related to nonvested stock options	2 years 7 months 20 days
Restricted stock
Unrecognized Compensation Cost
Expected weighted-average period for recognition of compensation costs related to nonvested stock options	1 year 2 months 19 days
Restricted Stock Units (RSUs)
Unrecognized Compensation Cost
Expected weighted-average period for recognition of compensation costs related to nonvested stock options	2 years 3 months 29 days
PRSU
Unrecognized Compensation Cost
Expected weighted-average period for recognition of compensation costs related to nonvested stock options	2 years 3 months 29 days

Equity Plan - Assumptions Used

Equity Plan - Assumptions Used to Estimate Fair Value (Details) - Employee Stock Option [Member]	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Assumptions Used to Estimate Fair Value
Expected life in months	72 months	72 months	72 months
Volatility (as a percent)	35%	31%	33%
Weighted average risk-free interest rate (as a percent)	3.52%	2.89%	1.10%
Expected dividends (as a percent)	6.98%	4.68%	4.32%

Equity Plan - Restricted Stock

Equity Plan - Restricted Stock Activity (Details)	12 Months Ended
Equity Plan - Restricted Stock Activity (Details)	Dec. 31, 2023 $ / shares shares
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
Nonqualified stock options
Number of Shares
Stock options granted (in shares)	397,000
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

Equity Plan - Unrecognized Co_2

Equity Plan - Unrecognized Compensation Cost - Nonvested Restricted Stock Awards (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Unrecognized Compensation Cost
Total compensation cost	$ 2,396,000	$ 3,178,000	$ 2,519,000
Total income tax expense (benefit) on share-based compensation cost	54,000	$ (94,000)	$ (155,000)
Restricted stock
Unrecognized Compensation Cost
Total unrecognized compensation cost related to nonvested restricted stock awards	$ 1,030,000
Expected weighted-average period for recognition of compensation costs related to nonvested restricted stock awards	1 year 2 months 19 days
Restricted Stock Units (RSUs)
Unrecognized Compensation Cost
Total unrecognized compensation cost related to nonvested restricted stock awards	$ 582,000
Expected weighted-average period for recognition of compensation costs related to nonvested restricted stock awards	2 years 3 months 29 days
PRSU
Unrecognized Compensation Cost
Total unrecognized compensation cost related to nonvested restricted stock awards	$ 582,000
Expected weighted-average period for recognition of compensation costs related to nonvested restricted stock awards	2 years 3 months 29 days

Benefit Plans - 401(k) Savings

Benefit Plans - 401(k) Savings Plan (Details) - USD ($)	12 Months Ended
Benefit Plans - 401(k) Savings Plan (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
401(k) Savings Plan
Maximum discretionary contribution matched by employer for each employee's contribution	$ 3,000	$ 3,000
Contribution expense	$ 949,000	$ 942,000	$ 944,000

Benefit Plans - Employee Stock

Benefit Plans - Employee Stock Ownership Plan (Details)	12 Months Ended
Benefit Plans - Employee Stock Ownership Plan (Details)	Dec. 31, 2023 item shares
Employee Stock Ownership Plan
Minimum number of hours of service required for plan eligibility \| item	1,000
Number of shares of Company's common stock owned by ESOP \| shares	86,573

Benefit Plans - Deferred Compen

Benefit Plans - Deferred Compensation Plan (Details) - employee	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Deferred Compensation Plan
Maximum percentage of bonus into deferred account	100%
Percentage of regular salary into deferred account	50%
Number of employees elected to participate in deferred compensation	8	10

Benefit Plans - Defined Benefit

Benefit Plans - Defined Benefit Plans - Nonqualified Defined Benefit Pension Plan (Details)	12 Months Ended
	Dec. 31, 2023 USD ($) person
Supplemental Retirement Plan
Combined number of active and retired/terminated participants in the SERP \| person	49
Supplemental Retirement Plan
Supplemental Retirement Plan
Plan assets associated with the plan \| $	$ 0
Vesting period of defined benefit stated amount, minimum	9 years

Benefit Plans - Defined Benef_2

Benefit Plans - Defined Benefit Plans - Change in Projected Benefit Obligation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Supplemental Retirement Plan
Change in projected benefit obligation:
Projected benefit obligation at beginning of year	$ 25,800	$ 33,179
Service cost	192	347
Actuarial loss (gain)	793	(7,065)
Interest cost	1,296	865
Benefits paid	(1,629)	(1,526)
Projected benefit obligation at end of period	26,452	25,800
Net actuarial loss	2,892	2,371
Split-Dollar Life Insurance Benefit Plan
Change in projected benefit obligation:
Projected benefit obligation at beginning of year	7,060	9,244
Actuarial loss (gain)	(474)	(2,430)
Interest cost	365	246
Projected benefit obligation at end of period	6,951	7,060
Net actuarial loss	$ 2,108	$ 2,301

Benefit Plans - Defined Benef_3

Benefit Plans - Defined Benefit Plans - Amounts Recognized in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Split-Dollar Life Insurance Benefit Plan
Amounts Recognized in Accumulated Other Comprehensive Loss
Net actuarial loss	$ 2,108	$ 2,301
Prior transition obligation	701	790
Accumulated other comprehensive loss	2,809	3,091
Supplemental Retirement Plan
Amounts Recognized in Accumulated Other Comprehensive Loss
Net actuarial loss	$ 2,892	$ 2,371

Benefit Plans - Defined Benef_4

Benefit Plans - Defined Benefit Plans - Weighted-average Assumptions Used to Determine the Benefit Obligation at Year-end (Details)	Dec. 31, 2023	Dec. 31, 2022
Supplemental Retirement Plan
Weighted-average Assumptions Used to Determine the Benefit Obligation at Year-end
Discount rate	4.95%	5.17%
Split-Dollar Life Insurance Benefit Plan
Weighted-average Assumptions Used to Determine the Benefit Obligation at Year-end
Discount rate	4.95%	5.17%

Benefit Plans - Defined Benef_5

Benefit Plans - Defined Benefit Plans - Estimated Benefit Payments over the Next Ten Years (Details) - Supplemental Retirement Plan $ in Thousands	Dec. 31, 2023 USD ($)
Estimated Benefit Payments
2024	$ 1,701
2025	2,086
2026	2,187
2027	2,327
2028	2,379
2029 to 2033	$ 12,388

Benefit Plans - Defined Benef_6

Benefit Plans - Defined Benefit Plans - Components of Pension Cost (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Supplemental Retirement Plan
Components of net periodic benefit cost:
Service cost	$ 192	$ 347
Interest cost	1,296	865
Amortization of net actuarial loss	52	455
Net periodic benefit cost	1,540	1,667
Amount recognized in other comprehensive income	(521)	5,297
Split-Dollar Life Insurance Benefit Plan
Components of net periodic benefit cost:
Amortization of prior transition obligation and actuarial losses	(191)	(41)
Interest cost	365	246
Net periodic benefit cost	174	205
Amount recognized in other comprehensive income	$ 283	$ 2,389

Benefit Plans - Defined Benef_7

Benefit Plans - Defined Benefit Plans - Estimated Net Actuarial Loss and Prior Service Cost (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Supplemental Retirement Plan
Estimated net actuarial loss and prior service cost that will be amortized from accumulated other comprehensive loss into net periodic cost over next fiscal year
Estimated net actuarial loss and prior service cost that will be amortized from accumulated other comprehensive loss into net periodic cost over next fiscal year	$ 104,000
Split-Dollar Life Insurance Benefit Plan
Estimated net actuarial loss and prior service cost that will be amortized from accumulated other comprehensive loss into net periodic cost over next fiscal year
Projected benefit obligation included in other comprehensive loss	$ (209,000)	$ (191,000)

Benefit Plans - Defined Benef_8

Benefit Plans - Defined Benefit Plans - Weighted-average Assumptions Used to Determine Net Periodic Cost (Details)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Supplemental Retirement Plan
Weighted-average Assumption Used to Determine Net Periodic Benefit Cost:
Discount rate	5.17%	2.66%
Split-Dollar Life Insurance Benefit Plan
Weighted-average Assumption Used to Determine Net Periodic Benefit Cost:
Discount rate	5.17%	2.66%

Fair Value - Financial Assets a

Fair Value - Financial Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	$ 442,636	$ 489,596
U.S. Treasury
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	382,369	418,474
Agency mortgage-backed securities
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	60,267	71,122
Recurring basis
Financial Assets and Liabilities Measured on a Recurring Basis
I/O strip receivables	117	152
Recurring basis \| U.S. Treasury
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	382,369	418,474
Recurring basis \| Agency mortgage-backed securities
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	60,267	71,122
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	382,369	418,474
Recurring basis \| Significant Other Observable Inputs (Level 2)
Financial Assets and Liabilities Measured on a Recurring Basis
I/O strip receivables	117	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	$ 60,267	$ 71,122

Fair Value - Impaired Loans Hel

Fair Value - Impaired Loans Held-for-investment - Additional Disclosures (Details) - USD ($) $ in Thousands	Dec. 31, 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 ($)	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Assets
Securities available-for-sale	$ 442,636,000	$ 489,596,000
Securities held-to-maturity, fair value	564,127,000	614,452,000
FHLB stock, FRB stock, and other investments	32,540,000	32,522,000
Liabilities
Subordinated debt	39,502,000	39,350,000
Allowance for credit losses on loans	47,958,000	47,512,000	$ 43,290,000	$ 44,400,000
Carrying Amounts
Assets
Cash and cash equivalents	408,129,000	306,603,000
Securities available-for-sale	442,636,000	489,596,000
Securities held-to-maturity, fair value	650,565,000	714,990,000
Loans (including loans held-for-sale)	3,352,583,000	3,301,006,000
FHLB stock, FRB stock, and other investments	32,540,000	32,522,000
Accrued interest receivable	14,959,000	15,047,000
I/O strips receivables	117,000	152,000
Liabilities
Time deposits	469,472,000	143,958,000
Other deposits	3,908,986,000	4,245,646,000
Subordinated debt	39,502,000	39,350,000
Accrued interest payable	4,688,000	600,000
Balance
Assets
Cash and cash equivalents	408,129,000	306,603,000
Securities available-for-sale	442,636,000	489,596,000
Securities held-to-maturity, fair value	564,127,000	614,452,000
Loans (including loans held-for-sale)	3,174,717,000	3,082,941,000
Accrued interest receivable	14,959,000	15,047,000
I/O strips receivables	117,000	152,000
Liabilities
Time deposits	471,693,000	144,702,000
Other deposits	3,908,986,000	4,245,646,000
Subordinated debt	31,902,000	36,025,000
Accrued interest payable	4,688,000	600,000
Balance \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets
Cash and cash equivalents	408,129,000	306,603,000
Securities available-for-sale	382,369,000	418,474,000
Accrued interest receivable	1,255,000	1,328,000
Balance \| Significant Other Observable Inputs (Level 2)
Assets
Securities available-for-sale	60,267,000	71,122,000
Securities held-to-maturity, fair value	564,127,000	614,452,000
Loans (including loans held-for-sale)	2,205,000	2,456,000
Accrued interest receivable	1,764,000	1,836,000
I/O strips receivables	117,000	152,000
Liabilities
Time deposits	471,693,000	144,702,000
Other deposits	3,908,986,000	4,245,646,000
Subordinated debt	31,902,000	36,025,000
Accrued interest payable	4,688,000	600,000
Balance \| Significant Unobservable Inputs (Level 3)
Assets
Loans (including loans held-for-sale)	3,172,512,000	3,080,485,000
Accrued interest receivable	$ 11,940,000	$ 11,883,000

Commitments and Loss Continge_3

Commitments and Loss Contingencies - Financial Instruments with Off-Balance Sheet Risk (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Commitments and Contingencies
Reserve for litigation			$ 4,500,000
Commitments to extend credit, fixed rate	$ 100,449,000	$ 88,913,000
Commitments to extend credit, variable rate	1,048,607,000	1,045,706,000
Commitment to extend credit, total	$ 1,149,056,000	1,134,619,000
Percentage of unused commitments to outstanding gross loans	34%
Increase (decrease) to the allowance for credit losses on loans	$ (53,000)
Off-balance sheet, credit loss liability increase due to offsetting increase in loss factors in CECL model	767,000	820,000
Unused lines of credit and commitments to make loans
Commitments and Contingencies
Commitments to extend credit, fixed rate	96,166,000	87,348,000
Commitments to extend credit, variable rate	1,041,608,000	1,036,847,000
Commitment to extend credit, total	1,137,774,000	1,124,195,000
Standby letters of credit
Commitments and Contingencies
Commitments to extend credit, fixed rate	4,283,000	1,565,000
Commitments to extend credit, variable rate	6,999,000	8,859,000
Commitment to extend credit, total	$ 11,282,000	$ 10,424,000

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Reconciliation of factors used in computing basic and diluted earnings per common share
Net Income (Loss)	$ 64,443	$ 66,555	$ 47,700
Weighted average common shares outstanding for basic earnings per common share (in shares)	61,038,857	60,602,962	60,133,821
Dilutive potential common shares	272,461	487,328	555,241
Shares used in computing diluted earnings per common share (in shares)	61,311,318	61,090,290	60,689,062
Basic earnings per share (in dollars per share)	$ 1.06	$ 1.10	$ 0.79
Diluted earnings per share (in dollars per share)	$ 1.05	$ 1.09	$ 0.79
Weighted average stock options
Reconciliation of factors used in computing basic and diluted earnings per common share
Number of shares in computing diluted earnings per common share	1,655,654	1,230,319	952,395
RSU
Reconciliation of factors used in computing basic and diluted earnings per common share
Number of shares in computing diluted earnings per common share	79,793

Capital Requirements - General

Capital Requirements - General Information (Details)		12 Months Ended
Capital Requirements - General Information (Details)	Mar. 27, 2020	Dec. 31, 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%	0.025%
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	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Total Capital (to risk-weighted assets)
Actual, Amount	$ 594,371	$ 554,810
Required For Capital Adequacy Purposes, Amount	$ 403,060	$ 393,461
Actual, Ratio (as a percent)	0.155	0.148
Required For Capital Adequacy Purposes, Ratio (as a percent)	0.105	0.105
Tier 1 Capital (to risk-weighted assets)
Actual, Amount	$ 511,799	$ 475,609
Required For Capital Adequacy Purposes, Amount	$ 326,287	$ 318,516
Actual, Ratio (as a percent)	0.133	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	$ 511,799	$ 475,609
Required For Capital Adequacy Purposes, Amount	$ 268,707	$ 262,307
Actual, Ratio (as a percent)	0.133%	0.127%
Required For Capital Adequacy Purposes, Ratio (as a percent)	0.07%	0.07%
Tier 1 Capital (to average assets)
Actual, Amount	$ 511,799	$ 475,609
Required For Capital Adequacy Purposes, Amount	$ 204,024	$ 207,852
Actual, Ratio (as a percent)	0.100	0.092
Required For Capital Adequacy Purposes, Ratio (as a percent)	0.040	0.040
HBC
Total Capital (to risk-weighted assets)
Actual, Amount	$ 572,907	$ 532,576
To Be Well Capitalized Under Regulatory Requirements, Amount	383,542	374,572
Required For Capital Adequacy Purposes, Amount	$ 402,719	$ 393,301
Actual, Ratio (as a percent)	14.9	14.2
To Be Well Capitalized Under Regulatory Requirements, Ratio (as a percent)	10	10
Required For Capital Adequacy Purposes, Ratio (as a percent)	10.5	10.5
Tier 1 Capital (to risk-weighted assets)
Actual, Amount	$ 529,836	$ 492,725
To Be Well Capitalized Under Regulatory Requirements, Amount	306,834	299,658
Required For Capital Adequacy Purposes, Amount	$ 326,011	$ 318,387
Actual, Ratio (as a percent)	13.8	13.2
To Be Well Capitalized Under Regulatory Requirements, Ratio (as a percent)	8	8
Required For Capital Adequacy Purposes, Ratio (as a percent)	8.5	8.5
Common Equity Tier 1 Capital (to risk-weighted assets)
Actual, Amount	$ 529,836	$ 492,725
To Be Well Capitalized Under Regulatory Requirements, Amount	249,302	243,472
Required For Capital Adequacy Purposes, Amount	$ 268,479	$ 262,201
Actual, Ratio (as a percent)	13.80%	13.20%
To Be Well Capitalized Under Regulatory Requirements, Ratio (as a percent)	6.50%	6.50%
Required For Capital Adequacy Purposes, Ratio (as a percent)	7%	7%
Tier 1 Capital (to average assets)
Actual, Amount	$ 529,836	$ 492,725
To Be Well Capitalized Under Regulatory Requirements, Amount	254,869	259,740
Required For Capital Adequacy Purposes, Amount	$ 203,895	$ 207,792
Actual, Ratio (as a percent)	10.4	9.5
To Be Well Capitalized Under Regulatory Requirements, Ratio (as a percent)	5	5
Required For Capital Adequacy Purposes, Ratio (as a percent)	4	4

Capital Requirements - Dividend

Capital Requirements - Dividends to Parent (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Cash dividend
Subordinated debt	$ 39,502,000	$ 39,350,000
HBC
Cash dividend
Cash dividend available	34,085,000
Dividends paid to parent company	$ 32,000,000	$ 32,000,000

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($) $ in Thousands	12 Months Ended
Revenue Recognition (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Disaggregation of Revenue [Line Items]
Noninterest Income In-scope of Topic 606	$ 4,341	$ 4,640	$ 2,488
Noninterest Income Out-of-scope of Topic 606	4,657	5,471	7,200
Total noninterest income	$ 8,998	$ 10,111	$ 9,688
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
Disaggregation of Revenue [Line Items]
Noninterest Income In-scope of Topic 606	$ 4,341	$ 4,640	$ 2,488

Noninterest Expense (Details)

Noninterest Expense (Details) - USD ($) $ in Thousands	12 Months Ended
Noninterest Expense (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Noninterest Expense
Salaries and employee benefits	$ 56,862	$ 55,331	$ 51,862
Occupancy and equipment	9,490	9,639	9,038
Insurance expense	6,264	4,958	3,270
Professional fees	4,350	5,015	5,901
Data processing	3,429	2,482	2,146
Software subscriptions	2,599	1,958	1,924
Client services	2,512	1,851	1,563
Reserve for litigation			4,500
Other	15,548	13,625	12,873
Total noninterest expense	$ 101,054	$ 94,859	$ 93,077

Business Segment Information -

Business Segment Information - Business Segments (Details)	12 Months Ended
Business Segment Information - Business Segments (Details)	Dec. 31, 2023 segment
Focus
Business Segment Information
Number of business segments	2

Business Segment Information _2

Business Segment Information - Operating Statements (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Operating Income
Interest income	$ 234,298,000	$ 188,828,000	$ 153,256,000
Total interest expense	51,074,000	8,948,000	7,131,000
Net interest income	183,224,000	179,880,000	146,125,000
Provision for (recapture of) credit losses on loans	749,000	766,000	(3,134,000)
Net interest income after provision	182,475,000	179,114,000	149,259,000
Noninterest income	8,998,000	10,111,000	9,688,000
Noninterest expense	101,054,000	94,859,000	93,077,000
Income before income taxes	90,419,000	94,366,000	65,870,000
Income tax expense	25,976,000	27,811,000	18,170,000
Net income	64,443,000	66,555,000	47,700,000
Total assets	5,194,095,000	5,157,580,000	5,499,409,000
Loans, net of deferred fees	3,350,378,000	3,298,550,000	3,087,326,000
Goodwill	167,631,000	167,631,000	167,631,000
Banking
Operating Income
Interest income	220,871,000	176,010,000	141,772,000
Intersegment interest allocations	2,038,000	1,441,000	868,000
Total interest expense	51,074,000	8,948,000	7,131,000
Net interest income	171,835,000	168,503,000	135,509,000
Provision for (recapture of) credit losses on loans	1,005,000	526,000	(2,926,000)
Net interest income after provision	170,830,000	167,977,000	138,435,000
Noninterest income	8,582,000	9,722,000	8,651,000
Noninterest expense	94,451,000	88,531,000	87,466,000
Intersegment expense allocations	547,000	524,000	410,000
Income before income taxes	85,508,000	89,692,000	60,030,000
Income tax expense	24,524,000	26,429,000	16,444,000
Net income	60,984,000	63,263,000	43,586,000
Total assets	5,111,367,000	5,062,943,000	5,424,350,000
Loans, net of deferred fees	3,292,920,000	3,219,287,000	3,034,097,000
Goodwill	154,587,000	154,587,000	154,587,000
Factoring
Operating Income
Interest income	13,427,000	12,818,000	11,484,000
Intersegment interest allocations	(2,038,000)	(1,441,000)	(868,000)
Net interest income	11,389,000	11,377,000	10,616,000
Provision for (recapture of) credit losses on loans	(256,000)	240,000	(208,000)
Net interest income after provision	11,645,000	11,137,000	10,824,000
Noninterest income	416,000	389,000	1,037,000
Noninterest expense	6,603,000	6,328,000	5,611,000
Intersegment expense allocations	(547,000)	(524,000)	(410,000)
Income before income taxes	4,911,000	4,674,000	5,840,000
Income tax expense	1,452,000	1,382,000	1,726,000
Net income	3,459,000	3,292,000	4,114,000
Total assets	82,728,000	94,637,000	75,059,000
Loans, net of deferred fees	57,458,000	79,263,000	53,229,000
Goodwill	$ 13,044,000	$ 13,044,000	$ 13,044,000

Parent Company only Condensed_3

Parent Company only Condensed Financial Information - Balance Sheets (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Assets
Cash and cash equivalents	$ 408,129,000	$ 306,603,000
Total assets	5,194,095,000	5,157,580,000	$ 5,499,409,000
Liabilities and Shareholders' Equity
Subordinated debt, net of issuance costs	39,502,000	39,350,000
Shareholders' equity	672,901,000	632,456,000	$ 598,028,000	$ 577,889,000
Total liabilities and shareholders' equity	5,194,095,000	5,157,580,000
Parent Company
Assets
Cash and cash equivalents	18,479,000	20,974,000
Investment in subsidiary bank	690,918,000	649,545,000
Other assets	3,266,000	1,549,000
Total assets	712,663,000	672,068,000
Liabilities and Shareholders' Equity
Subordinated debt, net of issuance costs	39,502,000	39,350,000
Other liabilities	260,000	262,000
Shareholders' equity	672,901,000	632,456,000
Total liabilities and shareholders' equity	$ 712,663,000	$ 672,068,000

Parent Company only Condensed_4

Parent Company only Condensed Financial Information - Statements of Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Condensed statements of income
Interest expense	$ (51,074)	$ (8,948)	$ (7,131)
Income tax benefit	(25,976)	(27,811)	(18,170)
Net income	64,443	66,555	47,700
Parent Company
Condensed statements of income
Dividend from subsidiary bank	32,000	32,000	32,000
Interest expense	(2,152)	(2,179)	(2,314)
Other expenses	(3,771)	(3,675)	(3,929)
Income before income taxes and equity in net income of subsidiary bank	26,077	26,146	25,757
Equity in undistributed net income of subsidiary bank	36,648	38,702	20,127
Income tax benefit	1,718	1,707	1,816
Net income	$ 64,443	$ 66,555	$ 47,700

Parent Company only Condensed_5

Parent Company only Condensed Financial Information - Statements of Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Cash flows from operating activities:
Net income	$ 64,443	$ 66,555	$ 47,700
Adjustments to reconcile net income to net cash provided by operations:
Amortization of restricted stock awards, net	1,404	2,583	1,940
Net cash provided by operating activities	73,010	69,853	56,849
Cash flows from financing activities:
Proceeds from exercise of stock options	1,220	2,050	1,469
Net cash (used in) provided by financing activities	(41,666)	(399,979)	815,125
Net increase (decrease) in cash and cash equivalents	101,526	(999,613)	175,143
Cash and cash equivalents, beginning of period	306,603	1,306,216	1,131,073
Cash and cash equivalents, end of period	408,129	306,603	1,306,216
Parent Company
Cash flows from operating activities:
Net income	64,443	66,555	47,700
Adjustments to reconcile net income to net cash provided by operations:
Amortization of restricted stock awards, net	1,404	2,583	1,940
Equity in undistributed net income of subsidiary bank	(36,648)	(38,702)	(20,127)
Net change in other assets and liabilities	(1,174)	1,222	(603)
Net cash provided by operating activities	28,025	31,658	28,910
Cash flows from financing activities:
Repayment of subordinated debt		(40,000)
Net change in purchased funds and other short-term borrowings		39,274
Payment of cash dividends	(31,740)	(31,495)	(31,270)
Proceeds from exercise of stock options	1,220	2,050	1,469
Net cash (used in) provided by financing activities	(30,520)	(30,171)	(29,801)
Net increase (decrease) in cash and cash equivalents	(2,495)	1,487	(891)
Cash and cash equivalents, beginning of period	20,974	19,487	20,378
Cash and cash equivalents, end of period	$ 18,479	$ 20,974	$ 19,487

Subsequent Events (Details)

Subsequent Events (Details) - $ / shares		12 Months Ended
Subsequent Events (Details) - $ / shares	Jan. 25, 2024	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Subsequent Event [Line Items]
Quarterly cash dividends declared to holders of common stock		$ 0.52	$ 0.52	$ 0.52
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	12 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Pay vs Performance Disclosure
Net Income (Loss)	$ 64,443	$ 66,555	$ 47,700

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Dec. 31, 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