Heritage Commerce (HTBK) 10-Q8 Nov 242024 Q3 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2024	Oct. 30, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2024
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		61,303,366
Entity Central Index Key	0001053352
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Assets
Cash and due from banks	$ 49,722,000	$ 41,592,000
Other investments and interest-bearing deposits in other financial institutions	906,588,000	366,537,000
Total cash and cash equivalents	956,310,000	408,129,000
Securities available-for-sale, at fair value	237,612,000	442,636,000
Securities held-to-maturity, at amortized cost, net of allowance for credit losses of $12 (fair value of $531,533 and $564,127, respectively)	604,193,000	650,565,000
Loans held-for-sale - SBA, at lower of cost or fair value, including deferred costs	1,649,000	2,205,000
Loans, net of deferred fees	3,410,236,000	3,350,378,000
Allowance for credit losses on loans	(47,819,000)	(47,958,000)
Loans, net	3,362,417,000	3,302,420,000
Federal Home Loan Bank ("FHLB"), Federal Reserve Bank ("FRB") stock and other investments, at cost	32,553,000	32,540,000
Company-owned life insurance	80,682,000	79,489,000
Premises and equipment, net	10,398,000	9,857,000
Goodwill	167,631,000	167,631,000
Other intangible assets	6,966,000	8,627,000
Accrued interest receivable and other assets	91,185,000	89,996,000
Total assets	5,551,596,000	5,194,095,000
Deposits:
Demand, noninterest-bearing	1,272,139,000	1,292,486,000
Demand, interest-bearing	913,910,000	914,066,000
Savings and money market	1,309,676,000	1,087,518,000
Time deposits - under $250	39,060,000	38,055,000
Time deposits - $250 and over	196,945,000	192,228,000
Insured Cash Sweep ("ICS")/Certificates of Deposit Account Registry Service ("CDARS") - interest-bearing demand, money market and time deposits	997,803,000	854,105,000
Total deposits	4,729,533,000	4,378,458,000
Subordinated debt, net of issuance costs	39,615,000	39,502,000
Accrued interest payable and other liabilities	97,096,000	103,234,000
Total liabilities	4,866,244,000	4,521,194,000
Shareholders' equity:
Preferred stock, no par value; 10,000,000 shares authorized; none issued and outstanding at September 30, 2024 and December 31, 2023
Common stock, no par value; 100,000,000 shares authorized; 61,297,344 and 61,146,835 shares issued and outstanding, respectively	509,134,000	506,539,000
Retained earnings	185,110,000	179,092,000
Accumulated other comprehensive loss	(8,892,000)	(12,730,000)
Total shareholders' equity	685,352,000	672,901,000
Total liabilities and shareholders' equity	$ 5,551,596,000	$ 5,194,095,000

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Securities held-to-maturity
Allowance for credit loss current period	$ 12,000	$ 12,000
Securities held-to-maturity	$ 531,533,000	$ 564,127,000
Preferred stock
Preferred stock, par value (in dollars per share)	$ 0	$ 0
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, outstanding	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	61,297,344	61,146,835
Common stock, shares outstanding	61,297,344	61,146,835

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Interest income:
Loans, including fees	$ 45,781	$ 44,853	$ 135,851	$ 132,993
Securities, taxable	4,676	6,797	16,342	20,835
Securities, exempt from Federal tax	223	232	674	718
Other investments, interest-bearing deposits in other financial institutions and Federal funds sold	10,758	8,909	25,199	20,860
Total interest income	61,438	60,791	178,066	175,406
Interest expense:
Deposits	20,985	14,880	56,989	31,504
Short-term borrowings				1,365
Subordinated debt	538	539	1,614	1,614
Total interest expense	21,523	15,419	58,603	34,483
Net interest income before provision for credit losses on loans	39,915	45,372	119,463	140,923
Provision for credit losses on loans	153	168	808	460
Net interest income after provision for credit losses on loans	39,762	45,204	118,655	140,463
Noninterest income:
Service charges and fees on deposit accounts	908	859	2,676	3,503
Increase in cash surrender value of life insurance	530	517	1,569	1,512
Servicing income	108	62	288	297
Gain on sales of SBA loans	94	207	348	482
Termination fees	46	118	159	129
Gain on proceeds from company-owned life insurance		100	219	100
Other	554	353	1,304	1,033
Total noninterest income	2,240	2,216	6,563	7,056
Noninterest expense:
Salaries and employee benefits	15,673	14,147	46,976	42,943
Occupancy and equipment	2,599	2,301	7,731	7,123
Professional fees	1,306	717	3,705	3,265
Other	7,977	8,006	24,867	22,232
Total noninterest expense	27,555	25,171	83,279	75,563
Income before income taxes	14,447	22,249	41,939	71,956
Income tax expense	3,940	6,454	12,032	20,841
Net income	$ 10,507	$ 15,795	$ 29,907	$ 51,115
Earnings per common share:
Basic (in dollars per share)	$ 0.17	$ 0.26	$ 0.49	$ 0.84
Diluted (in dollars per share)	$ 0.17	$ 0.26	$ 0.49	$ 0.83

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 10,507	$ 15,795	$ 29,907	$ 51,115
Other comprehensive income (loss):
Change in net unrealized holding gains (losses) on available-for-sale securities and I/O strips	4,024	(243)	5,549	(701)
Deferred income taxes	(1,167)	70	(1,609)	203
Change in unrealized gains (losses) on securities and I/O strips, net of deferred income taxes	2,857	(173)	3,940	(498)
Change in net pension and other benefit plan liability adjustment	(26)	(35)	(79)	(104)
Deferred income taxes	(8)	(3)	(23)	(11)
Change in pension and other benefit plan liability, net of deferred income taxes	(34)	(38)	(102)	(115)
Other comprehensive income (loss)	2,823	(211)	3,838	(613)
Total comprehensive income	$ 13,330	$ 15,584	$ 33,745	$ 50,502

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Total
Balance at Dec. 31, 2022	$ 502,923	$ 146,389	$ (16,856)	$ 632,456
Balance (in shares) at Dec. 31, 2022	60,852,723
Increase (Decrease) in Shareholders' Equity
Net income		18,917		18,917
Other comprehensive income, net of taxes			2,539	2,539
Net amortization of restricted stock awards	$ 382			382
Cash dividend declared		(7,916)		(7,916)
Stock option expense, net of forfeitures and taxes	147			147
Stock options exercised	$ 683			683
Stock options exercised (in shares)	95,884
Balance at Mar. 31, 2023	$ 504,135	157,390	(14,317)	647,208
Balance (in shares) at Mar. 31, 2023	60,948,607
Balance at Dec. 31, 2022	$ 502,923	146,389	(16,856)	632,456
Balance (in shares) at Dec. 31, 2022	60,852,723
Increase (Decrease) in Shareholders' Equity
Net income				51,115
Other comprehensive income, net of taxes			(613)	(613)
Balance at Sep. 30, 2023	$ 505,692	173,707	(17,469)	661,930
Balance (in shares) at Sep. 30, 2023	61,099,155
Balance at Mar. 31, 2023	$ 504,135	157,390	(14,317)	647,208
Balance (in shares) at Mar. 31, 2023	60,948,607
Increase (Decrease) in Shareholders' Equity
Net income		16,403		16,403
Other comprehensive income, net of taxes			(2,941)	(2,941)
Issuance (forfeitures) of restricted stock awards, net (in shares)	65,446
Net amortization of restricted stock awards	$ 376			376
Cash dividend declared		(7,940)		(7,940)
RSUs and PRSUs expense, net of taxes	96			96
Stock option expense, net of forfeitures and taxes	154			154
Stock options exercised	$ 314			314
Stock options exercised (in shares)	77,102
Balance at Jun. 30, 2023	$ 505,075	165,853	(17,258)	653,670
Balance (in shares) at Jun. 30, 2023	61,091,155
Increase (Decrease) in Shareholders' Equity
Net income		15,795		15,795
Other comprehensive income, net of taxes			(211)	(211)
Issuance (forfeitures) of restricted stock awards, net (in shares)	8,000
Net amortization of restricted stock awards	$ 321			321
Cash dividend declared		(7,941)		(7,941)
RSUs and PRSUs expense, net of taxes	148			148
Stock option expense, net of forfeitures and taxes	148			148
Balance at Sep. 30, 2023	$ 505,692	173,707	(17,469)	661,930
Balance (in shares) at Sep. 30, 2023	61,099,155
Balance at Dec. 31, 2023	$ 506,539	179,092	(12,730)	672,901
Balance (in shares) at Dec. 31, 2023	61,146,835
Increase (Decrease) in Shareholders' Equity
Net income		10,166		10,166
Other comprehensive income, net of taxes			142	142
Issuance of restricted stock awards, net (in shares)	33,908
Net amortization of restricted stock awards	$ 311			311
Cash dividend declared		(7,952)		(7,952)
RSUs and PRSUs expense, net of taxes	198			198
Stock option expense, net of forfeitures and taxes	145			145
Stock options exercised	$ 385			385
Stock options exercised (in shares)	72,882
Balance at Mar. 31, 2024	$ 507,578	181,306	(12,588)	676,296
Balance (in shares) at Mar. 31, 2024	61,253,625
Balance at Dec. 31, 2023	$ 506,539	179,092	(12,730)	672,901
Balance (in shares) at Dec. 31, 2023	61,146,835
Increase (Decrease) in Shareholders' Equity
Net income				29,907
Other comprehensive income, net of taxes			3,838	3,838
Balance at Sep. 30, 2024	$ 509,134	185,110	(8,892)	685,352
Balance (in shares) at Sep. 30, 2024	61,297,344
Balance at Mar. 31, 2024	$ 507,578	181,306	(12,588)	676,296
Balance (in shares) at Mar. 31, 2024	61,253,625
Increase (Decrease) in Shareholders' Equity
Net income		9,234		9,234
Other comprehensive income, net of taxes			873	873
Issuance (forfeitures) of restricted stock awards, net (in shares)	(8,000)
Net amortization of restricted stock awards	$ 165			165
Cash dividend declared		(7,969)		(7,969)
RSUs and PRSUs expense, net of taxes	$ 413			413
RSUs vested (in shares)	35,837
Stock option expense, net of forfeitures and taxes	$ 129			129
Stock options exercised	$ 58			58
Stock options exercised (in shares)	10,632
Balance at Jun. 30, 2024	$ 508,343	182,571	(11,715)	679,199
Balance (in shares) at Jun. 30, 2024	61,292,094
Increase (Decrease) in Shareholders' Equity
Net income		10,507		10,507
Other comprehensive income, net of taxes			2,823	2,823
Net amortization of restricted stock awards	$ 239			239
Cash dividend declared		(7,968)		(7,968)
RSUs and PRSUs expense, net of taxes	396			396
Stock option expense, net of forfeitures and taxes	121			121
Stock options exercised	$ 35			35
Stock options exercised (in shares)	5,250
Balance at Sep. 30, 2024	$ 509,134	$ 185,110	$ (8,892)	$ 685,352
Balance (in shares) at Sep. 30, 2024	61,297,344

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
Cash dividend declared per share (in dollars per share)	$ 0.13	$ 0.13	$ 0.13	$ 0.13	$ 0.13	$ 0.13

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 29,907	$ 51,115
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of premiums and accretion of discounts on securities, net	(2,139)	(3,746)
Gain on sale of SBA loans	(348)	(482)
Proceeds from sale of SBA loans originated for sale	4,563	8,035
SBA loans originated for sale	(3,659)	(5,938)
Provision for credit losses on loans	808	460
Increase in cash surrender value of life insurance	(1,569)	(1,512)
Depreciation and amortization	977	828
Amortization of other intangible assets	1,661	1,804
Stock option expense, net	395	449
RSUs and PRSUs expense	1,007	244
Amortization of restricted stock awards, net	715	1,079
Amortization of subordinated debt issuance costs	113	113
Gain on proceeds from company-owned life insurance	(219)	(100)
Effect of changes in:
Accrued interest receivable and other assets	202	(4,400)
Accrued interest payable and other liabilities	(9,262)	29,642
Net cash provided by operating activities	23,152	77,591
CASH FLOWS FROM INVESTING ACTIVITIES:
Maturities/paydowns/calls of securities available-for-sale	213,508	36,283
Maturities/paydowns/calls of securities held-to-maturity	45,598	49,500
Net change in loans	(60,805)	12,819
Changes in FHLB stock and other investments	(13)	(13)
Proceeds from redemption of company-owned life insurance	595	950
Purchase of premises and equipment	(1,518)	(1,234)
Net cash provided by investing activities	197,365	98,305
CASH FLOWS FROM FINANCING ACTIVITIES:
Net change in deposits	351,075	185,853
Exercise of stock options	478	997
Payment of cash dividends	(23,889)	(23,797)
Net cash provided by financing activities	327,664	163,053
Net increase in cash and cash equivalents	548,181	338,949
Cash and cash equivalents, beginning of period	408,129	306,603
Cash and cash equivalents, end of period	956,310	645,552
Supplemental disclosures of cash flow information:
Interest paid	56,140	29,887
Income taxes paid, net	12,342	79
Supplemental schedule of non-cash activity:
Recording of right of use assets in exchange for lease obligations	$ 3,045	$ 541

Basis of Presentation

Basis of Presentation	9 Months Ended
Basis of Presentation	Sep. 30, 2024
Basis of Presentation
Basis of Presentation	1) Basis of Presentation The unaudited consolidated financial statements of Heritage Commerce Corp (the “Company” or “HCC”) and its wholly owned subsidiary, Heritage Bank of Commerce (the “Bank” or “HBC”), have been prepared pursuant to the rules and regulations for reporting on Form 10-Q. Accordingly, certain information and notes required by accounting principles generally accepted in the United States of America (“GAAP”) for annual financial statements are not included herein. The interim statements should be read in conjunction with the consolidated financial statements and notes that were included in the Company’s Form 10-K for the year ended December 31, 2023 (“2023 Form 10-K”). HBC is a commercial bank serving clients primarily located in Alameda, Contra Costa, Marin, San Benito, San Francisco, San Mateo, and Santa Clara counties of California. CSNK Working Capital Finance Corp. a California corporation, dba Bay View Funding (“Bay View Funding”) is a wholly owned subsidiary of HBC, and provides business-essential working capital factoring financing to various industries throughout the United States. No client accounts for more than 10% of revenue for HBC or the Company. The Company reports its results for two segments: banking and factoring. The Company’s management uses segment results in its operating and strategic planning. In management’s opinion, all adjustments necessary for a fair presentation of these consolidated financial statements have been included and are of a normal and recurring nature. All intercompany transactions and balances have been eliminated. The preparation of financial statements in accordance with GAAP requires management to make a number of judgments, estimates and assumptions that affect the reported amount of assets, liabilities, income and expense in the financial statements. Various elements of our accounting policies, by their nature, involve the application of highly sensitive and judgmental estimates and assumptions. Some of these policies and estimates relate to matters that are highly complex and contain inherent uncertainties. Material estimates that are particularly susceptible to significant change include the determination of the allowance for credit losses and any impairment of goodwill or intangible assets. It is possible that, in some instances, different estimates and assumptions could reasonably have been made and used by management, instead of those we applied, which might have produced different results that could have had a material effect on the financial statements. The results for the three months and nine months ended September 30, 2024 are not necessarily indicative of the results expected for any subsequent period or for the entire year ending December 31, 2024. Reclassifications Certain reclassifications of prior year balances have been made to conform to the current year presentation. These reclassifications had no impact on the Company’s consolidated financial position, results of operations or net change in cash and cash equivalents. Issued But Not Yet Effective Accounting Standards In October 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-06 - Disclosure Improvements - Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative. ASU 2023-06 amends the disclosure or presentation requirements related to various subtopics in the FASB Accounting Standards Codification. ASU 2023-06 was issued in response to the SEC's August 2018 final rule that updated and simplified disclosure requirements. In the final rule, the SEC identified 27 disclosure requirements that were incremental to those in the ASC and referred them to the FASB for potential incorporation into US GAAP. To avoid duplication, the SEC intended to eliminate those disclosure requirements from existing SEC regulations if the FASB incorporated them into the relevant ASC subtopics. The disclosure requirements are currently included in either SEC Regulation S-X or SEC Regulation S-K. ASU 2023-06 adds 14 of the 27 identified disclosure or presentation requirements to the ASC. For entities like HCC that are subject to the SEC's existing disclosure requirements, the effective date for each amendment will be the date on which the SEC's removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. The amendments are to be applied prospectively and, if by June 30, 2027 the SEC has not removed the applicable requirement from Regulation S-X or S-K, the pending content of the related amendment will be removed from the ASC and will not become effective for any entity. Management intends to adopt the provisions of ASU 2023-06 on their respective effective dates. The adoption of the provisions of ASU 2023-06 is not expected to have a material impact on HCC's consolidated financial statements. ASU No. 2023-07 “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”) requires filers to disclose significant segment expenses, an amount and description for other segment items, the title and position of the entity’s chief operating decision maker ("CODM") and an explanation of how the CODM uses the reported measures of profit or loss to assess segment performance, and, on an interim basis, certain segment related disclosures that previously were required only on an annual basis. ASU 2023-07 also clarifies that entities with a single reportable segment are subject to both new and existing segment reporting requirements and that an entity is permitted to disclose multiple measures of segment profit or loss, provided that certain criteria are met. ASU 2023-07 is effective for the Company for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company will update the related disclosures upon adoption. In December 2023, FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The updated accounting guidance requires expanded income tax disclosures, including the disaggregation of existing disclosures related to the tax rate reconciliation and income taxes paid. The guidance is effective for annual periods beginning after December 15, 2024. Prospective application is required, with retrospective application permitted. Management is evaluating the impact of this ASU to the financial statement disclosures.

Shareholders' Equity and Earnin

Shareholders' Equity and Earnings Per Share	9 Months Ended
Shareholders' Equity and Earnings Per Share	Sep. 30, 2024
Shareholders' Equity and Earnings Per Share
Earnings Per Share	2) Shareholders’ Equity and Earnings Per Share Share Repurchase Program Earnings Per Share weighted average stock options outstanding for the three months and nine months ended September 30, 2023, respectively, considered to be antidilutive and excluded from the computation of diluted earnings per share. There were Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 (Dollars in thousands, except per share amounts) Net income $ 10,507 $ 15,795 $ 29,907 $ 51,115 Weighted average common shares outstanding for basic earnings per common share 61,295,877 61,093,289 61,254,138 61,012,315 Dilutive potential common shares 250,280 342,951 243,789 272,275 Shares used in computing diluted earnings per common share 61,546,157 61,436,240 $ 61,497,927 $ 61,284,590 Basic earnings per share $ 0.17 $ 0.26 $ 0.49 $ 0.84 Diluted earnings per share $ 0.17 $ 0.26 $ 0.49 $ 0.83

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss) (AOCI)	9 Months Ended
Accumulated Other Comprehensive Income (Loss) (AOCI)	Sep. 30, 2024
Accumulated Other Comprehensive Income (Loss) ("AOCI")
Accumulated Other Comprehensive Income (Loss) ("AOCI")	3) Accumulated Other Comprehensive Income (Loss) (“AOCI”) The following table reflects the changes in AOCI by component for the periods indicated: Three Months Ended September 30, 2024 and 2023 Unrealized Gains (Losses) on Available- Defined for-Sale Benefit Securities Pension and I/O Plan Strips Items (1) Total (Dollars in thousands) Beginning balance July 1, 2024, net of taxes $ (5,946) $ (5,769) $ (11,715) Other comprehensive income (loss) before reclassification, net of taxes 2,857 (16) 2,841 Amounts reclassified from other comprehensive income (loss), net of taxes — (18) (18) Net current period other comprehensive income (loss), net of taxes 2,857 (34) 2,823 Ending balance September 30, 2024, net of taxes $ (3,089) $ (5,803) $ (8,892) Beginning balance July 1, 2023, net of taxes $ (11,719) $ (5,539) $ (17,258) Other comprehensive income (loss) before reclassification, net of taxes (173) (13) (186) Amounts reclassified from other comprehensive income (loss), net of taxes — (25) (25) Net current period other comprehensive income (loss), net of taxes (173) (38) (211) Ending balance September 30, 2023, net of taxes $ (11,892) $ (5,577) $ (17,469) (1) This AOCI component is included in the computation of net periodic benefit cost (see Note 8 “ Benefit Plans ”) and includes split-dollar life insurance benefit plan. Nine Months Ended September 30, 2024 and 2023 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, 2024, net of taxes $ (7,029) (5,701) (12,730) Other comprehensive income (loss) before reclassification, net of taxes 3,940 (47) 3,893 Amounts reclassified from other comprehensive income (loss), net of taxes — (55) (55) Net current period other comprehensive income (loss), net of taxes 3,940 (102) 3,838 Ending balance September 30, 2024, net of taxes $ (3,089) $ (5,803) $ (8,892) Beginning balance January 1, 2023, net of taxes $ (11,394) $ (5,462) $ (16,856) Other comprehensive income (loss) before reclassification, net of taxes (498) (41) (539) Amounts reclassified from other comprehensive income (loss), net of taxes — (74) (74) Net current period other comprehensive income (loss), net of taxes (498) (115) (613) Ending balance September 30, 2023, net of taxes $ (11,892) $ (5,577) $ (17,469) (1) This AOCI component is included in the computation of net periodic benefit cost (see Note 8 “ Benefit Plans ”) and includes split-dollar life insurance benefit plan. Amounts Reclassified from AOCI Three Months Ended September 30, Affected Line Item Where Details About AOCI Components 2024 2023 Net Income is Presented (Dollars in thousands) Amortization of defined benefit pension plan items (1) Prior transition obligation and actuarial losses (2) $ 52 $ 48 Prior service cost and actuarial losses (3) (26) (13) 26 35 Other noninterest expense (8) (10) Income tax benefit Total reclassification from AOCI for the period $ 18 $ 25 Net of tax (1) This AOCI component is included in the computation of net periodic benefit cost (see Note 8 “ Benefit Plans ”). (2) This is related to the split dollar life insurance benefit plan. (3) This is related to the supplemental executive retirement plan. Amounts Reclassified from AOCI Nine Months Ended September 30, Affected Line Item Where Details About AOCI Components 2024 2023 Net Income is Presented (Dollars in thousands) Amortization of defined benefit pension plan items (1) Prior transition obligation and actuarial losses (2) $ 157 $ 143 Prior service cost and actuarial losses (3) (78) (39) 79 104 Other noninterest expense (24) (30) Income tax benefit Total reclassification from AOCI for the period $ 55 $ 74 Net of tax (1) This AOCI component is included in the computation of net periodic benefit cost (see Note 8 “ Benefit Plans ”). (2) This is related to the split dollar life insurance benefit plan. (3) This is related to the supplemental executive retirement plan.

Securities

Securities	9 Months Ended
Securities	Sep. 30, 2024
Securities
Securities	4) Securities The amortized cost and estimated fair value of securities were as follows at the dates indicated: Gross Gross Allowance Estimated Amortized Unrealized Unrealized for Credit Fair September 30, 2024 Cost Gains (Losses) Losses Value (Dollars in thousands) Securities available-for-sale: U.S. Treasury $ 185,602 $ — $ (1,440) $ — $ 184,162 Agency mortgage-backed securities 56,373 — (2,923) — 53,450 Total $ 241,975 $ — $ (4,363) $ — $ 237,612 Gross Gross Estimated Allowance Amortized Unrecognized Unrecognized Fair for Credit September 30, 2024 Cost Gains (Losses) Value Losses (Dollars in thousands) Securities held-to-maturity: Agency mortgage-backed securities $ 573,621 $ 381 $ (72,377) $ 501,625 $ — Municipals - exempt from Federal tax 30,584 3 (679) 29,908 (12) Total $ 604,205 $ 384 $ (73,056) $ 531,533 $ (12) 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) Securities with unrealized/unrecognized losses aggregated by investment category and length of time that individual securities have been in a continuous unrealized/unrecognized loss position are as follows at the dates indicated: Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized September 30, 2024 Value (Losses) Value (Losses) Value (Losses) (Dollars in thousands) Securities available-for-sale: U.S. Treasury $ — $ — $ 184,162 $ (1,440) $ 184,162 $ (1,440) Agency mortgage-backed securities — — 53,450 (2,923) 53,450 (2,923) Total $ — $ — $ 237,612 $ (4,363) $ 237,612 $ (4,363) Securities held-to-maturity: Agency mortgage-backed securities $ — $ — $ 490,099 $ (72,377) $ 490,099 $ (72,377) Municipals — exempt from Federal tax 4,288 (40) 20,521 (639) 24,809 (679) Total $ 4,288 $ (40) $ 510,620 $ (73,016) $ 514,908 $ (73,056) 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) The Company conducts a regular assessment of its investment securities to determine whether securities are experiencing credit losses. Factors for consideration include the nature of the securities, credit ratings or financial condition of the issuer, the extent of the unrealized loss, expected cash flows, market conditions and the Company’s ability to hold the securities through the anticipated recovery period. At the dates and during the periods covered by these financial statements, there were no holdings of securities of any one issuer, other than the U.S. Government and its sponsored entities, in an amount greater than 10% of shareholders’ equity. At September 30, 2024, the Company held 396 securities (130 available-for-sale and 266 held-to-maturity), of which 375 had fair value below amortized cost. The unrealized/unrecognized 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 estimated fair values of securities as of September 30, 2024 are shown by contractual maturity below. The expected maturities will differ from contractual maturities if borrowers have the right to call or pre-pay obligations with or without call or pre-payment penalties. Securities not due at a single maturity date are shown separately. Available-for-sale Amortized Estimated Cost Fair Value (Dollars in thousands) Due three months or less $ 8,981 $ 8,972 Due after three months through one year 176,621 175,190 Agency mortgage-backed securities 56,373 53,450 Total $ 241,975 $ 237,612 Held-to-maturity Amortized Estimated Cost (1) Fair Value (Dollars in thousands) Due after three months through one year $ 1,805 $ 1,799 Due after one through five years 7,395 7,307 Due after five through ten years 21,384 20,802 Agency mortgage-backed securities 573,621 501,625 Total $ 604,205 $ 531,533 (1) Gross of the allowance for credit losses of ( $12,000 ) at September 30, 2024. Securities with amortized cost of $777,327,000 and $1,041,608,000 as of September 30, 2024 and December 31, 2023, respectively, were pledged to secure the Bank’s lines of credit and for other purposes as required or permitted by law or contract. The decrease in pledged securities at September 30, 2024 was due to securities maturities. The allowance for credit losses on the Company’s held-to-maturity debt securities is presented as a reduction to the amortized cost basis of held-to-maturity securities on the Company’s Consolidated Balance Sheet. The table below presents a roll-forward by major security type for the nine months ended September 30, 2024 of the allowance for credit losses on debt securities held-to-maturity at period end: Municipals (Dollars in thousands) Beginning balance January 1, 2024 $ 12 Provision for credit losses — Ending balance September 30, 2024 $ 12 The bond ratings for the Company’s municipal investment securities at September 30, 2024 were consistent with the ratings at December 31, 2023.

Loans and Allowance for Credit

Loans and Allowance for Credit Losses on Loans	9 Months Ended
Loans and Allowance for Credit Losses on Loans	Sep. 30, 2024
Loans and Allowance for Credit Losses on Loans
Loans and Allowance for Credit Losses on Loans	5) Loans and Allowance for Credit Losses on Loans In accordance with Accounting Standards Codification (“ASC”) 326, the Company is required to measure the allowance for credit losses of financial assets with similar risk characteristics on a collective or pooled basis. In considering the segmentation of financial assets measured at amortized cost into pools, the Company considered various risk characteristics in its analysis. Generally, the segmentation utilized represents the level at which the Company develops and documents its systematic methodology to determine the allowance for credit losses for the financial assets held at amortized cost, specifically the Company's loan portfolio and debt securities classified as held-to-maturity. Descriptions of the Company’s loan portfolio segments are included in Note 1 “ Summary of Significant Accounting Policies Loan Distribution Loans by portfolio segment and the allowance for credit losses on loans were as follows at the dates indicated: September 30, December 31, 2024 2023 (Dollars in thousands) Loans held-for-investment: Commercial $ 481,266 $ 463,778 Real estate: CRE - owner occupied 602,062 583,253 CRE - non-owner occupied 1,310,578 1,256,590 Land and construction 125,761 140,513 Home equity 124,090 119,125 Multifamily 273,103 269,734 Residential mortgages 479,524 496,961 Consumer and other 14,179 20,919 Loans 3,410,563 3,350,873 Deferred loan fees, net (327) (495) Loans, net of deferred fees 3,410,236 3,350,378 Allowance for credit losses on loans (47,819) (47,958) Loans, net $ 3,362,417 $ 3,302,420 The allowance for credit losses is an estimate of the expected credit losses on financial assets measured at amortized cost, which is measured using relevant information about past events, including historical credit loss experience on financial assets with similar risk characteristics, current conditions, and reasonable and supportable forecasts that affect the collectability of the remaining cash flows over the contractual term of the financial assets. Changes in the allowance for credit losses on loans were as follows for the periods indicated: Three Months Ended September 30, 2024 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 $ 5,010 $ 5,344 $ 26,847 $ 1,523 $ 814 $ 4,269 $ 3,960 $ 187 $ 47,954 Charge-offs (174) — — — — — — (300) (474) Recoveries 154 14 — — 18 — — — 186 Net (charge-offs) recoveries (20) 14 — — 18 — — (300) (288) Provision for (recapture of) credit losses on loans (273) 62 603 (195) (72) 86 (291) 233 153 End of period balance $ 4,717 $ 5,420 $ 27,450 $ 1,328 $ 760 $ 4,355 $ 3,669 $ 120 $ 47,819 Three Months Ended September 30, 2023 CRE CRE Owner Non-owner Land & Home Multi- Residential Consumer Commercial Occupied Occupied Construction Equity Family Mortgages and Other Total (Dollars in thousands) Beginning of period balance $ 6,550 $ 5,463 $ 23,523 $ 2,870 $ 730 $ 4,383 $ 4,129 $ 155 $ 47,803 Charge-offs (447) — — — — — — — (447) Recoveries 59 2 — — 117 — — — 178 Net (charge-offs) recoveries (388) 2 — — 117 — — — (269) Provision for (recapture of) credit losses on loans (557) (120) 1,396 (126) (140) 331 (635) 19 168 End of period balance $ 5,605 $ 5,345 $ 24,919 $ 2,744 $ 707 $ 4,714 $ 3,494 $ 174 $ 47,702 Nine Months Ended September 30, 2024 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 $ 5,853 $ 5,121 $ 25,323 $ 2,352 $ 644 $ 5,053 $ 3,425 $ 187 $ 47,958 Charge-offs (1,042) — — — — — — (300) (1,342) Recoveries 300 24 — — 71 — — — 395 Net (charge-offs) recoveries (742) 24 — — 71 — — (300) (947) Provision for (recapture of) credit losses on loans (394) 275 2,127 (1,024) 45 (698) 244 233 808 End of period balance $ 4,717 $ 5,420 $ 27,450 $ 1,328 $ 760 $ 4,355 $ 3,669 $ 120 $ 47,819 Nine Months Ended September 30, 2023 CRE CRE Owner Non-owner Land & Home Multi- Residential Consumer Commercial Occupied Occupied Construction Equity Family Mortgages and Other Total (Dollars in thousands) Beginning of period balance $ 6,617 $ 5,751 $ 22,135 $ 2,941 $ 666 $ 3,366 $ 5,907 $ 129 $ 47,512 Charge-offs (605) — — — (246) — — — (851) Recoveries 247 10 — — 324 — — — 581 Net (charge-offs) recoveries (358) 10 — — 78 — — — (270) Provision for (recapture of) credit losses on loans (654) (416) 2,784 (197) (37) 1,348 (2,413) 45 460 End of period balance $ 5,605 $ 5,345 $ 24,919 $ 2,744 $ 707 $ 4,714 $ 3,494 $ 174 $ 47,702 The following tables present the amortized cost basis of nonperforming loans and loans past due over 90 days and still accruing at the dates indicated: September 30, 2024 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 $ 620 $ 132 $ 460 $ 1,212 Real estate: CRE - Owner Occupied — — — — CRE - Non-Owner Occupied — — — — Land and construction 5,862 — — 5,862 Home equity 84 — — 84 Total $ 6,566 $ 132 $ 460 $ 7,158 December 31, 2023 Nonaccrual Nonaccrual 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 $ 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 The following tables present the aging of past due loans by class at the dates indicated: September 30, 2024 30 - 59 60 - 89 90 Days or Days Days Greater Total Past Due Past Due Past Due Past Due Current Total (Dollars in thousands) Commercial $ 4,390 $ 1,755 $ 1,082 $ 7,227 $ 474,039 $ 481,266 Real estate: CRE - Owner Occupied — — — — 602,062 602,062 CRE - Non-Owner Occupied 4,513 — — 4,513 1,306,065 1,310,578 Land and construction — — 5,862 5,862 119,899 125,761 Home equity 659 — — 659 123,431 124,090 Multifamily — — — — 273,103 273,103 Residential mortgages — — — — 479,524 479,524 Consumer and other — — — — 14,179 14,179 Total $ 9,562 $ 1,755 $ 6,944 $ 18,261 $ 3,392,302 $ 3,410,563 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 The following table presents the past due loans on nonaccrual and current loans on nonaccrual at the dates indicated: September 30, December 31, 2024 2023 (Dollars in thousands) Past due nonaccrual loans $ 6,484 $ 6,100 Current nonaccrual loans 214 718 Total nonaccrual loans $ 6,698 $ 6,818 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 Credit quality indicators, specifically the Company's internal risk rating systems, reflect how the Company monitors credit losses and represents factors used by the Company when measuring the allowance for credit losses. Descriptions of the Company’s credit quality indicators by financial asset are included in Note 4 “ Loans and Allowance for Credit Losses on Loans The following tables show the Company’s loan portfolio by credit quality indicator and year of origination at September 30, 2024 and December 31, 2023. The loan categories are based on the loan segmentation in the Company's current expected credit loss (“CECL”) reserve methodology for the calculation of the allowance for credit losses on loans based on loan purpose and type. Revolving Loans Term Loans Amortized Cost Basis by Originated Period as of September 30, 2024 Amortized 2024 2023 2022 2021 2020 Prior Periods Cost Basis Total (Dollars in thousands) Commercial: Pass $ 89,567 $ 27,960 $ 18,909 $ 17,627 $ 11,351 $ 30,452 $ 275,491 $ 471,357 Special Mention 3,029 — 358 131 — 185 200 3,903 Substandard — 147 592 — — 4,415 100 5,254 Substandard-Nonaccrual — — — 223 — 529 — 752 Total 92,596 28,107 19,859 17,981 11,351 35,581 275,791 481,266 CRE - Owner Occupied: Pass 42,069 31,845 83,140 102,419 66,720 253,342 9,407 588,942 Special Mention — — — 8,282 447 1,217 — 9,946 Substandard — — — — 3,174 — — 3,174 Substandard-Nonaccrual — — — — — — — — Total 42,069 31,845 83,140 110,701 70,341 254,559 9,407 602,062 CRE - Non-Owner Occupied: Pass 97,037 223,427 232,175 255,074 27,272 446,572 3,833 1,285,390 Special Mention — — 4,841 2,201 — 1,279 — 8,321 Substandard — — — 4,514 — 11,753 600 16,867 Substandard-Nonaccrual — — — — — — — — Total 97,037 223,427 237,016 261,789 27,272 459,604 4,433 1,310,578 Land and construction: Pass 26,745 43,646 30,987 15,984 214 — — 117,576 Special Mention — — — — — 2,323 — 2,323 Substandard — — — — — — — — Substandard-Nonaccrual — — — 3,815 966 1,081 — 5,862 Total 26,745 43,646 30,987 19,799 1,180 3,404 — 125,761 Home equity: Pass — — — — — 2,098 119,357 121,455 Special Mention — — — — — — 2,110 2,110 Substandard — — — — — — 441 441 Substandard-Nonaccrual — — — — — 84 — 84 Total — — — — — 2,182 121,908 124,090 Multifamily: Pass 13,397 46,528 39,833 54,067 5,286 113,429 563 273,103 Special Mention — — — — — — — — Substandard — — — — — — — — Substandard-Nonaccrual — — — — — — — — Total 13,397 46,528 39,833 54,067 5,286 113,429 563 273,103 Residential mortgage: Pass 3,937 1,665 184,031 255,131 1,014 33,570 — 479,348 Special Mention — — — — — — — — Substandard — — — — — 176 — 176 Substandard-Nonaccrual — — — — — — — — Total 3,937 1,665 184,031 255,131 1,014 33,746 — 479,524 Consumer and other: Pass 175 674 1,339 48 — 1,998 9,871 14,105 Special Mention — — — — — 74 — 74 Substandard — — — — — — — — Substandard-Nonaccrual — — — — — — — — Total 175 674 1,339 48 — 2,072 9,871 14,179 Total loans $ 275,956 $ 375,892 $ 596,205 $ 719,516 $ 116,444 $ 904,577 $ 421,973 $ 3,410,563 Risk Grades: Pass $ 272,927 $ 375,745 $ 590,414 $ 700,350 $ 111,857 $ 881,461 $ 418,522 $ 3,351,276 Special Mention 3,029 — 5,199 10,614 447 5,078 2,310 26,677 Substandard — 147 592 4,514 3,174 16,344 1,141 25,912 Substandard-Nonaccrual — — — 4,038 966 1,694 — 6,698 Grand Total $ 275,956 $ 375,892 $ 596,205 $ 719,516 $ 116,444 $ 904,577 $ 421,973 $ 3,410,563 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 The following tables present the gross charge-offs by class of loans and year of origination for the periods indicated: Gross Charge-offs by Originated Period for the Three Months Ended September 30, 2024 Prior Revolving 2024 2023 2022 2021 2020 Periods Loans Total (Dollars in thousands) Commercial $ — $ — $ — $ — $ — $ 25 $ 149 $ 174 Real estate: CRE - Owner Occupied — — — — — — — — CRE - Non-Owner Occupied — — — — — — — — Land and construction — — — — — — — — Home equity — — — — — — — — Multifamily — — — — — — — — Residential mortgages — — — — — — — — Consumer and other — — — — — — 300 300 Total $ — $ — $ — $ — $ — $ 25 $ 449 $ 474 Gross Charge-offs by Originated Period for the Three Months Ended September 30, 2023 Prior Revolving 2023 2022 2021 2020 2019 Periods Loans Total (Dollars in thousands) Commercial $ 1 $ 45 $ — $ — $ 229 $ 172 $ — $ 447 Real estate: CRE - Owner Occupied — — — — — — — — CRE - Non-Owner Occupied — — — — — — — — Land and construction — — — — — — — — Home equity — — — — — — — — Multifamily — — — — — — — — Residential mortgages — — — — — — — — Consumer and other — — — — — — — — Total $ 1 $ 45 $ — $ — $ 229 $ 172 $ — $ 447 Gross Charge-offs by Originated Period for the Nine Months Ended September 30, 2024 Prior Revolving 2024 2023 2022 2021 2020 Periods Loans Total (Dollars in thousands) Commercial $ — $ 416 $ — $ — $ — $ 477 $ 149 $ 1,042 Real estate: CRE - Owner Occupied — — — — — — — — CRE - Non-Owner Occupied — — — — — — — — Land and construction — — — — — — — — Home equity — — — — — — — — Multifamily — — — — — — — — Residential mortgages — — — — — — — — Consumer and other — — — — — — 300 300 Total $ — $ 416 $ — $ — $ — $ 477 $ 449 $ 1,342 Gross Charge-offs by Originated Period for the Nine Months Ended September 30, 2023 Prior Revolving 2023 2022 2021 2020 2019 Periods Loans Total (Dollars in thousands) Commercial $ 1 $ 49 $ — $ — $ 278 $ 277 $ — $ 605 Real estate: CRE - Owner Occupied — — — — — — — — CRE - Non-Owner Occupied — — — — — — — — Land and construction — — — — — — — — Home equity — — — — — — 246 246 Multifamily — — — — — — — — Residential mortgages — — — — — — — — Consumer and other — — — — — — — — Total $ 1 $ 49 $ — $ — $ 278 $ 277 $ 246 $ 851 The amortized cost basis of collateral-dependent loans at September 30, 2024 and December 31, 2023 was $132,000 and $290,000, 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 for which foreclosure is not probable, but for which repayment is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty, management has elected the practical expedient method 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. During the three months ended September 30, 2024, there were no loan modifications to borrowers experiencing financial difficulty. During the three months ended September 30, 2023, there were commercial loan modifications with a payment delay totaling $25,000, representing 0.01% of the total class of financing receivables. During the nine months ended September 30, 2024, there were commercial loan modifications with a term extension totaling $15,000, representing 0.00% of the total class of financing receivables, and included a weighted average term extension of 12 months. During the nine months ended September 30, 2023, there were commercial loan modifications with a payment delay totaling $79,000, a combination term extension and interest rate reduction totaling $2,000, representing 0.02% of the total class of financing receivables, and included principal forgiveness totaling $3,000, a weighted average interest rate reduction of 0.25%, and a weighted average term extension of 14 months. The Company has not committed to lend any additional amounts to these borrowers. There were no payment defaults for loans modified for the three and nine months ended September 30, 2024 and September 30, 2023.

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	9 Months Ended
Goodwill and Other Intangible Assets	Sep. 30, 2024
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets	6) Goodwill and Other Intangible Assets Goodwill At September 30, 2024, the carrying value of goodwill was $167,631,000, which included $13,044,000 of goodwill related to the acquisition of Bay View Funding, the Bank’s factoring subsidiary, $32,619,000 from the acquisition of Focus Business Bank, $13,819,000 from the acquisition of Tri-Valley Bank, $24,271,000 from the acquisition of United American Bank and $83,878,000 from its acquisition of Presidio Bank. ASC 350-20 outlines the methodology used to determine if goodwill has been impaired and to measure any loss resulting from an impairment. 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. If the qualitative assessment indicates it is more likely than not that the fair value of equity of a reporting unit is less than book value, then a quantitative impairment test is required. The quantitative assessment identifies if a reporting unit’s fair value is less than its carrying value. If it is, then the Company will recognize goodwill impairment equal to the difference between the carrying amount of the reporting unit and its fair value, not to exceed the carrying amount of goodwill. On a quarterly basis, management assesses whether it is necessary to perform a quantitative impairment test of goodwill. Management concluded that there were no triggering events and circumstances that would indicate that the fair value of the reporting unit is less that its carrying amount as of September 30, 2024. In addition, t he Company hires a third party vendor to test goodwill for impairment annually as of November 30, or on an interim basis if an event triggering impairment assessment may have occurred. Potential impairment indicators considered include the condition of the economy and banking industry; government intervention and regulatory updates; the impact of recent events to financial performance and cost factors of the reporting units; performance of the Company’s stock and other relevant events. 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 carrying 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: September 30, December 31, 2024 2023 (Dollars in thousands) Banking $ 154,587 $ 154,587 Factoring 13,044 13,044 Total Goodwill $ 167,631 $ 167,631 Other Intangible Assets The Company’s intangible assets are summarized as follows for the periods indicated: September 30, 2024 Gross Carrying Accumulated Amount Amortization Total (Dollars in thousands) Core deposit intangibles $ 25,023 (18,164) $ 6,859 Customer relationship and brokered relationship intangibles 1,900 (1,883) 17 Below market leases 110 (20) 90 Total $ 27,033 $ (20,067) $ 6,966 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 As of September 30, 2024, the estimated amortization expense for future periods is as follows: Customer & Below/ Core Brokered (Above) Total Deposit Relationship Market Amortization Year Intangible Intangible Lease Expense (Dollars in thousands) 2024 remaining $ 505 $ 17 $ 4 $ 526 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 $ 6,859 $ 17 $ 90 $ 6,966 Impairment testing of the intangible assets is performed at the individual asset level. Impairment exists if the carrying amount of the asset is not recoverable and exceeds its fair value at the date of the impairment test. For intangible assets, estimates of expected future cash flows (cash inflows less cash outflows) that are directly associated with an intangible asset are used to determine the fair value of that asset. Management makes certain estimates and assumptions in determining the expected future cash flows from core deposit and customer relationship intangibles including account attrition, expected lives, discount rates, interest rates, servicing costs and other factors. Significant changes in these estimates and assumptions could adversely impact the valuation of these intangible assets. If an impairment loss exists, the carrying amount of the intangible asset is adjusted to a new cost basis. The new cost basis is then amortized over the remaining useful life of the asset. Based on its assessment, management concluded that there was no impairment of intangible assets at September 30, 2024 and December 31, 2023.

Income Taxes

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2024
Income Taxes
Income Taxes	7) Income Taxes Some items of income and expense are recognized in one year for tax purposes, and another when applying generally accepted accounting principles, which leads to timing differences between the Company’s actual current tax liability and the amount accrued for this liability based on book income. These temporary differences comprise the “deferred” portion of the Company’s tax expense or benefit, which is accumulated on the Company’s books as a deferred tax asset or deferred tax liability until such time as they reverse. Under generally accepted accounting principles, a valuation allowance is required if it is “more likely than not” that a deferred tax asset will not be realized. The determination of the realizability of the deferred tax assets is highly subjective and dependent upon judgment concerning management’s evaluation of both positive and negative evidence, including forecasts of future income, cumulative losses, applicable tax planning strategies, and assessments of current and future economic and business conditions. The Company had net deferred tax assets of $26,390,000 and $29,765,000, at September 30, 2024 and December 31, 2023, respectively. After consideration of the matters in the preceding paragraph, the Company determined that it is more likely than not that the net deferred tax assets at September 30, 2024 and December 31, 2023 will be fully realized in future years. The following table reflects the carrying amounts of the low income housing investments included in accrued interest receivable and other assets, and the future commitments included in accrued interest payable and other liabilities for the periods indicated: September 30, December 31, 2024 2023 (Dollars in thousands) Low income housing investments $ 2,349 $ 2,794 Future commitments $ 491 $ 494 The Company expects $11,000 of the future commitments to be paid in 2024, and $480,000 in 2025 through 2027. For tax purposes, the Company had low income housing tax credits of $141,000 and $180,000 for the three months ended September 30, 2024 and 2023, respectively, and low income housing investment expense of $148,000 and $186,000, respectively. For tax purposes, the Company had low income housing tax credit of $422,000 and $540,000 for the nine months ended September 30, 2024 and 2023, respectively, and low income housing investment expense of $445,000 and $557,000, respectively. The Company recognized low income housing investment expense as a component of income tax expense.

Benefit Plans

Benefit Plans	9 Months Ended
Benefit Plans	Sep. 30, 2024
Benefit Plans
Benefit Plans	8) Benefit Plans Supplemental Retirement Plan The Company has a supplemental retirement plan (the “Plan”) covering some current and some former key employees and directors. While the Plan remains active for those participants, the Company has not approved any new participation in the Plan since 2011. The Plan is a nonqualified defined benefit plan. Benefits are unsecured as there are no Plan assets. The following table presents the amount of periodic cost recognized for the periods indicated: Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 (Dollars in thousands) Components of net periodic benefit cost: Service cost $ 52 $ 48 $ 154 $ 144 Interest cost 318 324 954 972 Amortization of net actuarial loss 26 13 78 39 Net periodic benefit cost $ 396 $ 385 $ 1,186 $ 1,155 Amount recognized in other comprehensive income (loss) $ 18 $ 9 $ 54 $ 27 The components of net periodic benefit cost other than the service cost component are included in the line item “other noninterest expense” in the Consolidated Statements of Income. Split-Dollar Life Insurance Benefit Plan The Company maintains life insurance policies for some current and former directors and officers that are subject to split-dollar life insurance agreements. The following table sets forth the funded status of the split-dollar life insurance benefits for the periods indicated: September 30, December 31, 2024 2023 (Dollars in thousands) Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 6,951 $ 7,060 Interest cost 259 365 Actuarial loss — (474) Projected benefit obligation at end of period $ 7,210 $ 6,951 September 30, December 31, 2024 2023 (Dollars in thousands) Net actuarial loss $ (2,332) $ (2,108) Prior transition obligation (633) (701) Accumulated other comprehensive income (loss) $ (2,965) $ (2,809) Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 (Dollars in thousands) Amortization of prior transition obligation and actuarial losses $ (53) $ (48) $ (157) $ (143) Interest cost 87 92 259 274 Net periodic benefit cost $ 34 $ 44 $ 102 $ 131 Amount recognized in other comprehensive income (loss) $ (53) $ (48) $ (157) $ (143)

Fair Value

Fair Value	9 Months Ended
Fair Value	Sep. 30, 2024
Fair Value
Fair Value	9) Fair Value Accounting guidance establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data (for example, interest rates and yield curves observable at commonly quoted intervals, prepayment speeds, credit risks, and default rates). Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Financial Assets and Liabilities Measured on a Recurring Basis The fair values of securities available-for-sale are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs) or matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities, but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs). The fair value of interest-only (“I/O”) strip receivable assets is based on a valuation model used by a third party. The Company is able to compare the valuation model inputs and results to widely available published industry data for reasonableness (Level 2 inputs). Fair Value Measurements Using Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Balance (Level 1) (Level 2) (Level 3) (Dollars in thousands) Assets at September 30, 2024 Available-for-sale securities: U.S. Treasury $ 184,162 $ 184,162 $ — $ — Agency mortgage-backed securities 53,450 — 53,450 — I/O strip receivables 95 — 95 — 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 — There were no transfers between Level 1 and Level 2 during the period for assets measured at fair value on a recurring basis. Assets and Liabilities Measured on a Non-Recurring Basis The fair value of collateral dependent loans individually evaluated with specific allocations of the allowance for credit losses on loans is generally based on recent real estate appraisals. The appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. There were no material collateral dependent loans carried at fair value on a non-recurring basis at September 30, 2024 or December 31, 2023. Foreclosed assets are valued at the time the loan is foreclosed upon and the asset is transferred to foreclosed assets. The fair value is based primarily on third-party appraisals, less costs to sell. The appraisals may utilize a single valuation approach or a combination of approaches including the comparable sales and income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are typically significant and result in a Level 3 classification of the inputs for determining fair value. At September 30, 2024 and December 31, 2023, there were no foreclosed assets on the balance sheet. The carrying amounts and estimated fair values of the Company’s financial instruments at September 30, 2024 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 $ 956,310 $ 956,310 $ — $ — $ 956,310 Securities available-for-sale 237,612 184,162 53,450 — 237,612 Securities held-to-maturity 604,193 — 531,533 — 531,533 Loans (including loans held-for-sale) 3,411,885 (1) — 1,649 3,246,881 3,248,530 FHLB stock, FRB stock, and other investments 32,553 — — — N/A Accrued interest receivable 15,220 604 3,020 11,596 15,220 I/O strips receivables 95 — 95 — 95 Liabilities: Time deposits $ 523,396 $ — $ 525,656 $ — $ 525,656 Other deposits 4,206,137 — 4,206,137 — 4,206,137 Subordinated debt 39,615 — 33,215 — 33,215 Accrued interest payable 7,037 — 7,037 — 7,037 (1) Before allowance for credit losses on loans of $47,819,000. The carrying amounts and estimated fair values of the Company’s 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 — 4,698 — 4,698 (1) Before allowance for credit losses on loans of $47,958,000.

Equity Plan

Equity Plan	9 Months Ended
Equity Plan	Sep. 30, 2024
Equity Plan
Equity Plan	10) Equity Plan The Company maintained an Amended and Restated 2004 Equity Plan (the “2004 Plan”) for directors, officers, and key employees. The 2004 Plan was terminated on May 23, 2013. On May 23, 2013, the Company’s shareholders approved the 2013 Equity Incentive Plan (the “2013 Plan”). On May 21, 2020, the shareholders approved an amendment to the 2013 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 reserved for issuance 600,000 shares, plus the number of shares available for issuance under the 2013 Plan that had not been made subject to outstanding awards as of the effective date of the 2023 Plan. These plans are collectively referred to as “Equity Plans.” The Equity Plans provide for the grant of incentive and nonqualified stock options, restricted stock, restricted stock units (“RSUs”) and performance-based restricted stock units (“PRSUs”). The Equity Plans provide that the option price for both incentive and nonqualified stock options will be determined by the Board of Directors at no less than the fair value at the date of grant. Each RSU granted to non-executive employees generally vests The executive officers that participate in the Company’s Long Term Incentive Equity Program receive 50% of their award value in RSUs and 50% of their award value in PRSUs contingent on return on average tangible common equity (“ROATCE”) performance compared to a peer group at the end of a three year performance period. PRSUs are subject to cliff vesting after a Restricted stock is subject to time vesting. Restricted stock granted to the Board of Directors generally vests in one year. For the nine months ended September 30, 2024, the Company granted 57,213 shares of restricted stock. 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, 2024 2,637,356 $ 10.40 Exercised (88,764) $ 5.39 Forfeited or expired (222,399) $ 10.58 Outstanding at September 30, 2024 2,326,193 $ 10.58 5.07 $ 1,867,043 Vested or expected to vest 2,186,621 5.07 $ 1,755,020 Exercisable at September 30, 2024 1,898,485 4.39 $ 1,328,659 The table below provides information related to stock option activity under the Equity Plans for the periods indicated: Nine Months Ended September 30, 2024 2023 Intrinsic value of options exercised $ 321,882 $ 620,013 Cash received from option exercise $ 478,358 $ 996,453 Tax (expense) benefit realized from option exercises $ (17,785) $ (5,902) Weighted average fair value of options granted N/A $ 1.32 As of September 30, 2024, there was $724,000 of total unrecognized compensation cost related to unvested stock options granted under the Equity Plans. That cost is expected to be recognized over a weighted-average period of approximately 1.94 years. Restricted stock activity under the Equity Plans is as follows: Weighted Average Grant Number Date Fair Total Restricted Stock Award of Shares Value Nonvested shares at January 1, 2024 185,413 $ 10.87 Granted 57,123 $ 8.49 Vested (123,260) $ 9.12 Forfeited or expired (31,215) $ 11.43 Nonvested shares at September 30, 2024 88,061 $ 9.45 As of September 30, 2024, there was $482,000 of total unrecognized compensation cost related to unvested restricted stock awards granted under the Equity Plans. The cost is expected to be recognized over a weighted-average period of approximately 0.73 years. RSU activity under the Equity Plans is as follows: Weighted Average Grant Number Date Fair Total RSUs of Shares Value Nonvested shares at January 1, 2024 119,362 $ 7.41 Granted 273,841 $ 8.47 Vested (35,837) $ 7.46 Forfeited or expired (40,589) $ 7.84 Nonvested shares at September 30, 2024 316,777 $ 8.26 As of September 30, 2024, there were $2,136,000 of total unrecognized compensation cost related to unvested RSUs granted under the Equity Plans. The cost is expected to be recognized over a weighted average period of PRSU activity under the Equity Plans is as follows: Weighted Average Grant Number Date Fair Total PRSUs of Shares Value Nonvested shares at January 1, 2024 119,358 $ 7.41 Granted 149,923 $ 8.49 Forfeited or expired (39,862) $ 7.75 Nonvested shares at September 30, 2024 229,419 $ 8.06 As of September 30, 2024, there were $1,307,000 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 2.20 years.

Borrowing Arrangements

Borrowing Arrangements	9 Months Ended
Borrowing Arrangements	Sep. 30, 2024
Borrowing Arrangements
Borrowing Arrangements	11) Borrowing Arrangements Federal Home Loan Bank Borrowings, Federal Reserve Bank Borrowings, and Available Lines of Credit HBC has off-balance sheet liquidity in the form of Federal funds purchase arrangements with correspondent banks, and lines of credit from the FHLB and FRB. 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 can also borrow from the FRB discount window. The following table shows the collateral value of loans and securities pledged for the lines of credit (if collateralized), total available lines of credit, the amounts outstanding, and the remaining available at the dates indicated: September 30, 2024 Collateral Total Remaining Value Available Outstanding Available (Dollars in thousands) FHLB collateralized borrowing capacity $ 1,204,712 $ 765,134 $ — $ 765,134 FRB discount window collateralized line of credit 1,755,474 1,397,326 — 1,397,326 Federal funds purchase arrangements N/A 90,000 — 90,000 Holding company line of credit N/A 25,000 — 25,000 $ 2,960,186 $ 2,277,460 $ — $ 2,277,460 December 31, 2023 Collateral Total Remaining Value Available Outstanding Available (Dollars in thousands) FHLB collateralized borrowing capacity $ 1,600,371 $ 1,100,931 $ — $ 1,100,931 FRB discount window collateralized line of credit 1,658,642 1,235,573 — 1,235,573 Federal funds purchase arrangements N/A 90,000 — 90,000 Holding company line of credit N/A 20,000 — 20,000 Total $ 3,259,013 $ 2,446,504 $ — $ 2,446,504 HBC may also utilize securities sold under repurchase agreements to manage its liquidity position. There were no securities sold under agreements to repurchase at September 30, 2024 and December 31, 2023. Subordinated Debt

Capital Requirements

Capital Requirements	9 Months Ended
Capital Requirements	Sep. 30, 2024
Capital Requirements
Capital Requirements	12) Capital Requirements The Company and HBC are subject to various regulatory capital requirements administered by the banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory—and possibly additional discretionary—actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements and operations. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and HBC must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off balance sheet items as calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. The Company’s consolidated capital ratios and the HBC’s capital ratios exceeded the regulatory guidelines for a well-capitalized financial institution under the Basel III regulatory requirements at September 30, 2024. There are no conditions or events since September 30, 2024, that management believes have changed the categorization of the Company or HBC as “well-capitalized.” Quantitative measures established by regulation to help ensure capital adequacy require the Company and HBC to maintain minimum amounts and ratios (set forth in the tables below) of total, Tier 1 capital, and common equity Tier 1 capital (as defined in the regulations) to risk weighted assets (as defined), and of Tier 1 capital to average assets (as defined). Management believes that, as of September 30, 2024 and December 31, 2023, 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 at the dates indicated: Required For Capital Adequacy Purposes Actual Under Basel III Amount Ratio Amount Ratio (1) (Dollars in thousands) As of September 30, 2024 Total Capital $ 605,396 15.6 % $ 406,919 10.5 % (to risk-weighted assets) Tier 1 Capital $ 520,133 13.4 % $ 329,411 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 520,133 13.4 % $ 271,279 7.0 % (to risk-weighted assets) Tier 1 Capital $ 520,133 10.0 % $ 207,279 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, 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. The Subordinated Debt, net of unamortized issuance costs, totaled $39,615,000 at September 30, 2024, and qualifies as Tier 2 capital for the Company under the guidelines established by the Federal Reserve Board. HBC’s actual capital amounts and ratios are presented in the following table, together with capital adequacy requirements, under the Basel III regulatory requirements at the dates indicated: Required For Capital To Be Well-Capitalized Adequacy Under PCA Regulatory Purposes Actual Guidelines Under Basel III Amount Ratio Amount Ratio Amount Ratio (1) (Dollars in thousands) As of September 30, 2024 Total Capital $ 585,034 15.1 % $ 387,242 10.0 % $ 406,604 10.5 % (to risk-weighted assets) Tier 1 Capital $ 539,386 13.9 % $ 309,793 8.0 % $ 329,156 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 539,386 13.9 % $ 251,707 6.5 % $ 271,069 7.0 % (to risk-weighted assets) Tier 1 Capital $ 539,386 10.4 % $ 258,949 5.0 % $ 207,159 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, 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. Under the California General Corporation Law, the holders of common stock are entitled to receive dividends when and as declared by the Board of Directors, out of funds legally available. The California Financial Code provides that a state licensed bank may not make a cash distribution to its shareholders in excess of the lesser of the following: (i) the bank’s retained earnings; or (ii) the bank’s net income for its last three fiscal years, less the amount of any distributions made by the bank to its shareholders during such period. However, a bank, with the prior approval of the Commissioner of the California Department of Financial Protection and Innovation (“DFPI”) may make a distribution to its shareholders of an amount not to exceed the greater of (i) a bank’s retained earnings; (ii) its net income for its last fiscal year; or (iii) its net income for the current fiscal year. Also with the prior approval of the Commissioner of the DFPI and the shareholders of the bank, the bank may make a distribution to its shareholders, as a reduction in capital of the bank. In the event that the Commissioner determines that the shareholders’ equity of a bank is inadequate or that the making of a distribution by a bank would be unsafe or unsound, the Commissioner may order a bank to refrain from making such a proposed distribution. As of September 30, 2024, HBC would not be required to obtain regulatory approval, and the amount available for cash dividends is $71,477,000. HBC distributed to HCC dividends of $8,000,000 during the first, second, and third quarters of 2024 for a total of $24,000,000.

Commitments and Loss Contingenc

Commitments and Loss Contingencies	9 Months Ended
Commitments and Loss Contingencies	Sep. 30, 2024
Commitments and Loss Contingencies
Commitments and Loss Contingencies	13) Commitments and Loss Contingencies Loss Contingencies Within the ordinary course of our business, we are from time to time subject to private lawsuits, government audits and examinations, administrative proceedings and other claims. Under certain circumstances, we also may be subjected to increased risk associated with the acts or omissions of our clients (such as clients who, unbeknownst to the Bank or the Company, may engage in or become associated with fraudulent or unlawful transactions, Ponzi schemes, money laundering, and similar unlawful acts). 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 ultimately determined to be liable. At September 30, 2024, the Company was the subject of three pending legal proceedings (excluding pending and potential litigation arising in the ordinary course of business) each of which was an employment-related action asserted between November 2020 and October 2021. Two of the claims purport to be class actions on behalf of other employees and seek unspecified damages, penalties and attorney fees under the California Labor Code, the California Business and Professions Code, and the California Private Attorneys General Act (“PAGA”). The third such claim is an individual claim alleging race and gender discrimination, wage violations, and a variety of other claims. The claimants in all three actions allege various instances of disability, race and gender discrimination, wage-and-hour violations, retaliation, and related claims. Two of these cases remain pending in Alameda County Superior Court following a series of motions and interlocutory appeals, and are currently set for trial late in the summer of 2025. The third claim was substantially resolved through mediation in October 2024, after the period covered by the accompanying financial statements, for an amount that is immaterial to the Company’s financial condition and results of operations. The Company contends that the claims are without merit and intends 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 cannot always 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, once made, may prove inaccurate. At this time, we believe that the amount of reasonably possible losses resulting from final disposition of pending or threatened 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, and that, associated with the defense of such claims, we may incur elevated levels of attorney fees and other litigation costs. Likewise, factors that affect the insurance coverage for these matters may affect our estimates of the relevant contingent liabilities, and we generally adjust our estimates based on known factors that affect that coverage as those factors come to light. 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 clients 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 $1,117,775,000 at September 30, 2024, and $1,149,056,000 at December 31, 2023. Unused commitments represented 33% and 34% of outstanding gross loans at September 30, 2024 and December 31, 2023, respectively. The effect on the Company’s revenues, expenses, cash flows and liquidity from the unused portion of the commitments to provide credit cannot be reasonably predicted because there is no certainty that lines of credit and letters of credit will ever be fully utilized. The following table presents the Company’s commitments to extend credit at the dates indicated: September 30, 2024 December 31, 2023 Fixed Variable Fixed Variable Rate Rate Total Rate Rate Total (Dollars in thousands) Unused lines of credit and commitments to make loans $ 122,471 $ 972,291 $ 1,094,762 $ 96,166 $ 1,041,608 $ 1,137,774 Standby letters of credit 6,178 16,835 23,013 4,283 6,999 11,282 $ 128,649 $ 989,126 $ 1,117,775 $ 100,449 $ 1,048,607 $ 1,149,056 For the nine months ended September 30, 2024, there was a decrease of ($111,000) to the allowance for credit losses on the Company’s off-balance sheet credit exposures. The decrease in the allowance for credit losses for off-balance sheet credit exposures in the first nine months of 2024 was driven by a decline in the loss factor due to an improved forecast in the commercial and industrial and land and construction loan segments. The allowance for credit losses on the Company’s off-balance sheet credit exposures was $656,000 at September 30, 2024 and $767,000 at December 31, 2023.

Revenue Recognition

Revenue Recognition	9 Months Ended
Revenue Recognition	Sep. 30, 2024
Revenue Recognition
Revenue Recognition	14) Revenue Recognition 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 clients fees that are not specifically related to the client 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 client 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 client behavior. An example would be where we do not charge a monthly service fee, or do not charge for certain transactions, for clients 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 clients’ accounts. The Company currently accounts for sales of foreclosed assets in accordance with Topic 360-20. In most cases the Company will seek to engage a real estate agent for the sale of foreclosed assets immediately upon foreclosure. However, in some cases, where there is clear demand for the property in question, the Company may elect to allow for a marketing period of no more than six months to attempt a direct sale of the property. We generally recognize the sale, and any associated gain or loss, of a real estate property when control of the property transfers. Any gains or losses from the sale are recorded to noninterest income/expense. The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of ASU 2020-05 Revenue from Contracts with Customers (Topic 606), for the periods indicated: Three Months Ended September 30, 2024 2023 (Dollars in thousands) Noninterest Income In-scope of Topic 606: Service charges and fees on deposit accounts $ 908 $ 859 Total noninterest income in-scope of Topic 606 908 859 Noninterest Income Out-of-scope of Topic 606 1,332 1,357 Total noninterest income $ 2,240 $ 2,216 Nine Months Ended September 30, 2024 2023 (Dollars in thousands) Noninterest Income In-scope of Topic 606: Service charges and fees on deposit accounts $ 2,676 $ 3,503 Total noninterest income in-scope of Topic 606 2,676 3,503 Noninterest Income Out-of-scope of Topic 606 3,887 3,553 Total noninterest income $ 6,563 $ 7,056

Noninterest Expense

Noninterest Expense	9 Months Ended
Noninterest Expense	Sep. 30, 2024
Noninterest Expense
Noninterest Expense	15) Noninterest Expense The following table sets forth the various components of the Company’s noninterest expense for the periods indicated: Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 (Dollars in thousands) Salaries and employee benefits $ 15,673 $ 14,147 $ 46,976 $ 42,943 Occupancy and equipment 2,599 2,301 7,731 7,123 Insurance expense 1,715 1,595 4,988 4,627 Professional fees 1,306 717 3,705 3,265 Client services 809 682 2,497 1,633 Data processing 800 906 2,635 2,593 Software subscriptions 743 682 2,034 1,903 Other 3,910 4,141 12,713 11,476 Total noninterest expense $ 27,555 $ 25,171 $ 83,279 $ 75,563

Leases

Leases	9 Months Ended
Leases	Sep. 30, 2024
Leases
Leases	16) Leases The Company recognizes the following for all leases, at the commencement date: (1) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right-of-use (“ROU”) asset, which is an asset that represents the lessee’s right to use, or control the use, of a specified asset for the lease term. The Company is impacted as a lessee of the offices and real estate used for operations. The Company's lease agreements include options to renew at the Company's option. No lease extensions are reasonably certain to be exercised, therefore it was not considered in the calculation of the ROU asset and lease liability. As of September 30, 2024, operating lease ROU assets, included in other assets, and lease liabilities, included in other liabilities, totaled $31,912,000. The following table presents the quantitative information for the Company’s leases for the periods indicated: Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 (Dollars in thousands) Operating Lease Cost (Cost resulting from lease payments) $ 1,727 $ 1,677 $ 5,125 $ 5,087 Operating Lease - Operating Cash Flows (Fixed Payments) $ 1,764 $ 1,678 $ 5,165 $ 5,026 Operating Lease - ROU assets $ 31,912 $ 31,979 $ 31,912 $ 31,979 Operating Lease - Liabilities $ 31,912 $ 31,979 $ 31,912 $ 31,979 Weighted Average Lease Term - Operating Leases 5.32 years 6.10 years 5.32 years 6.10 years Weighted Average Discount Rate - Operating Leases 5.56% 4.86% 5.56% 4.86% The following maturity analysis shows the undiscounted cash flows due on the Company’s operating lease liabilities as of September 30, 2024: (Dollars in thousands) 2024 remaining $ 1,778 2025 7,145 2026 6,603 2027 6,380 2028 5,779 Thereafter 9,457 Total undiscounted cash flows 37,142 Discount on cash flows (5,230) Total lease liability $ 31,912

Business Segment Information

Business Segment Information	9 Months Ended
Business Segment Information	Sep. 30, 2024
Business Segment Information
Business Segment Information	17) Business Segment Information The following presents the Company’s operating segments. The Company operates through two business segments: Banking segment and Factoring segment. Transactions between segments consist primarily of borrowed funds. Intersegment interest expense is allocated to the Factoring segment based on the Company’s prime rate and funding costs. The provision for credit losses on loans is allocated based on the segment’s allowance for credit loss determination which considers the effects of charge-offs. Noninterest income and expense directly attributable to a segment are assigned to it. Taxes are paid on a consolidated basis and allocated for segment purposes. The Factoring segment includes only factoring originated by Bay View Funding. Three Months Ended September 30, 2024 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 59,294 $ 2,144 $ 61,438 Intersegment interest allocations 470 (470) — Total interest expense 21,523 — 21,523 Net interest income 38,241 1,674 39,915 Provision for (recapture of) credit losses on loans 186 (33) 153 Net interest income after provision 38,055 1,707 39,762 Noninterest income 1,982 258 2,240 Noninterest expense 25,808 1,747 27,555 Intersegment expense allocations 121 (121) — Income before income taxes 14,350 97 14,447 Income tax expense 3,911 29 3,940 Net income $ 10,439 $ 68 $ 10,507 Total assets $ 5,466,494 $ 85,102 $ 5,551,596 Loans, net of deferred fees $ 3,353,037 $ 57,199 $ 3,410,236 Goodwill $ 154,587 $ 13,044 $ 167,631 Three Months Ended September 30, 2023 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 58,016 $ 2,775 $ 60,791 Intersegment interest allocations 397 (397) — Total interest expense 15,419 — 15,419 Net interest income 42,994 2,378 45,372 Provision for (recapture of) credit losses on loans 254 (86) 168 Net interest income after provision 42,740 2,464 45,204 Noninterest income 2,044 172 2,216 Noninterest expense 23,588 1,583 25,171 Intersegment expense allocations 109 (109) — Income before income taxes 21,305 944 22,249 Income tax expense 6,175 279 6,454 Net income $ 15,130 $ 665 $ 15,795 Total assets $ 5,314,922 $ 88,385 $ 5,403,307 Loans, net of deferred fees $ 3,233,379 $ 52,082 $ 3,285,461 Goodwill $ 154,587 $ 13,044 $ 167,631 (1) Includes the holding company’s results of operations Nine Months Ended September 30, 2024 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 170,170 $ 7,896 $ 178,066 Intersegment interest allocations 1,346 (1,346) — Total interest expense 58,603 — 58,603 Net interest income 112,913 6,550 119,463 Provision for credit losses on loans 556 252 808 Net interest income after provision 112,357 6,298 118,655 Noninterest income 6,030 533 6,563 Noninterest expense 78,438 4,841 83,279 Intersegment expense allocations 381 (381) — Income before income taxes 40,330 1,609 41,939 Income tax expense 11,556 476 12,032 Net income $ 28,774 $ 1,133 $ 29,907 Total assets $ 5,466,494 $ 85,102 $ 5,551,596 Loans, net of deferred fees $ 3,353,037 $ 57,199 $ 3,410,236 Goodwill $ 154,587 $ 13,044 $ 167,631 Nine Months Ended September 30, 2023 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 164,783 $ 10,623 $ 175,406 Intersegment interest allocations 1,626 (1,626) — Total interest expense 34,483 — 34,483 Net interest income 131,926 8,997 140,923 Provision (recapture) for credit losses on loans 807 (347) 460 Net interest income after provision 131,119 9,344 140,463 Noninterest income 6,743 313 7,056 Noninterest expense 70,645 4,918 75,563 Intersegment expense allocations 435 (435) — Income before income taxes 67,652 4,304 71,956 Income tax expense 19,572 1,269 20,841 Net income $ 48,080 $ 3,035 $ 51,115 Total assets $ 5,314,922 $ 88,385 $ 5,403,307 Loans, net of deferred fees $ 3,233,379 $ 52,082 $ 3,285,461 Goodwill $ 154,587 $ 13,044 $ 167,631 (1) Includes the holding company’s results of operations

Subsequent Events

Subsequent Events	9 Months Ended
Subsequent Events	Sep. 30, 2024
Subsequent Events
Subsequent Events	18) Subsequent Events On October 24, 2024, the Company announced that its Board of Directors declared a $0.13 per share quarterly cash dividend to holders of common stock. The dividend will be payable on November 21, 2024, to shareholders of record at the close of the business day on November 7, 2024.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 10,507	$ 9,234	$ 10,166	$ 15,795	$ 16,403	$ 18,917	$ 29,907	$ 51,115

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Sep. 30, 2024
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

Basis of Presentation (Policies

Basis of Presentation (Policies)	9 Months Ended
Basis of Presentation (Policies)	Sep. 30, 2024
Basis of Presentation
Description of Business and Basis of Presentation	The unaudited consolidated financial statements of Heritage Commerce Corp (the “Company” or “HCC”) and its wholly owned subsidiary, Heritage Bank of Commerce (the “Bank” or “HBC”), have been prepared pursuant to the rules and regulations for reporting on Form 10-Q. Accordingly, certain information and notes required by accounting principles generally accepted in the United States of America (“GAAP”) for annual financial statements are not included herein. The interim statements should be read in conjunction with the consolidated financial statements and notes that were included in the Company’s Form 10-K for the year ended December 31, 2023 (“2023 Form 10-K”). HBC is a commercial bank serving clients primarily located in Alameda, Contra Costa, Marin, San Benito, San Francisco, San Mateo, and Santa Clara counties of California. CSNK Working Capital Finance Corp. a California corporation, dba Bay View Funding (“Bay View Funding”) is a wholly owned subsidiary of HBC, and provides business-essential working capital factoring financing to various industries throughout the United States. No client accounts for more than 10% of revenue for HBC or the Company. The Company reports its results for two segments: banking and factoring. The Company’s management uses segment results in its operating and strategic planning. In management’s opinion, all adjustments necessary for a fair presentation of these consolidated financial statements have been included and are of a normal and recurring nature. All intercompany transactions and balances have been eliminated. The preparation of financial statements in accordance with GAAP requires management to make a number of judgments, estimates and assumptions that affect the reported amount of assets, liabilities, income and expense in the financial statements. Various elements of our accounting policies, by their nature, involve the application of highly sensitive and judgmental estimates and assumptions. Some of these policies and estimates relate to matters that are highly complex and contain inherent uncertainties. Material estimates that are particularly susceptible to significant change include the determination of the allowance for credit losses and any impairment of goodwill or intangible assets. It is possible that, in some instances, different estimates and assumptions could reasonably have been made and used by management, instead of those we applied, which might have produced different results that could have had a material effect on the financial statements. The results for the three months and nine months ended September 30, 2024 are not necessarily indicative of the results expected for any subsequent period or for the entire year ending December 31, 2024.
Reclassifications	Certain reclassifications of prior year balances have been made to conform to the current year presentation. These reclassifications had no impact on the Company’s consolidated financial position, results of operations or net change in cash and cash equivalents.
Issued But Not Yet Effective Accounting Standards	Issued But Not Yet Effective Accounting Standards In October 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-06 - Disclosure Improvements - Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative. ASU 2023-06 amends the disclosure or presentation requirements related to various subtopics in the FASB Accounting Standards Codification. ASU 2023-06 was issued in response to the SEC's August 2018 final rule that updated and simplified disclosure requirements. In the final rule, the SEC identified 27 disclosure requirements that were incremental to those in the ASC and referred them to the FASB for potential incorporation into US GAAP. To avoid duplication, the SEC intended to eliminate those disclosure requirements from existing SEC regulations if the FASB incorporated them into the relevant ASC subtopics. The disclosure requirements are currently included in either SEC Regulation S-X or SEC Regulation S-K. ASU 2023-06 adds 14 of the 27 identified disclosure or presentation requirements to the ASC. For entities like HCC that are subject to the SEC's existing disclosure requirements, the effective date for each amendment will be the date on which the SEC's removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. The amendments are to be applied prospectively and, if by June 30, 2027 the SEC has not removed the applicable requirement from Regulation S-X or S-K, the pending content of the related amendment will be removed from the ASC and will not become effective for any entity. Management intends to adopt the provisions of ASU 2023-06 on their respective effective dates. The adoption of the provisions of ASU 2023-06 is not expected to have a material impact on HCC's consolidated financial statements. ASU No. 2023-07 “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”) requires filers to disclose significant segment expenses, an amount and description for other segment items, the title and position of the entity’s chief operating decision maker ("CODM") and an explanation of how the CODM uses the reported measures of profit or loss to assess segment performance, and, on an interim basis, certain segment related disclosures that previously were required only on an annual basis. ASU 2023-07 also clarifies that entities with a single reportable segment are subject to both new and existing segment reporting requirements and that an entity is permitted to disclose multiple measures of segment profit or loss, provided that certain criteria are met. ASU 2023-07 is effective for the Company for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company will update the related disclosures upon adoption. In December 2023, FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The updated accounting guidance requires expanded income tax disclosures, including the disaggregation of existing disclosures related to the tax rate reconciliation and income taxes paid. The guidance is effective for annual periods beginning after December 15, 2024. Prospective application is required, with retrospective application permitted. Management is evaluating the impact of this ASU to the financial statement disclosures.

Shareholders' Equity and Earn_2

Shareholders' Equity and Earnings Per Share (Tables)	9 Months Ended
Shareholders' Equity and Earnings Per Share (Tables)	Sep. 30, 2024
Shareholders' Equity and Earnings Per Share
Schedule of reconciliation of factors used in computing basic and diluted earnings per common share	Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 (Dollars in thousands, except per share amounts) Net income $ 10,507 $ 15,795 $ 29,907 $ 51,115 Weighted average common shares outstanding for basic earnings per common share 61,295,877 61,093,289 61,254,138 61,012,315 Dilutive potential common shares 250,280 342,951 243,789 272,275 Shares used in computing diluted earnings per common share 61,546,157 61,436,240 $ 61,497,927 $ 61,284,590 Basic earnings per share $ 0.17 $ 0.26 $ 0.49 $ 0.84 Diluted earnings per share $ 0.17 $ 0.26 $ 0.49 $ 0.83

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Loss) (AOCI) (Tables)	9 Months Ended
	Sep. 30, 2024
Accumulated Other Comprehensive Income (Loss) ("AOCI")
Schedule of changes in AOCI by component	Three Months Ended September 30, 2024 and 2023 Unrealized Gains (Losses) on Available- Defined for-Sale Benefit Securities Pension and I/O Plan Strips Items (1) Total (Dollars in thousands) Beginning balance July 1, 2024, net of taxes $ (5,946) $ (5,769) $ (11,715) Other comprehensive income (loss) before reclassification, net of taxes 2,857 (16) 2,841 Amounts reclassified from other comprehensive income (loss), net of taxes — (18) (18) Net current period other comprehensive income (loss), net of taxes 2,857 (34) 2,823 Ending balance September 30, 2024, net of taxes $ (3,089) $ (5,803) $ (8,892) Beginning balance July 1, 2023, net of taxes $ (11,719) $ (5,539) $ (17,258) Other comprehensive income (loss) before reclassification, net of taxes (173) (13) (186) Amounts reclassified from other comprehensive income (loss), net of taxes — (25) (25) Net current period other comprehensive income (loss), net of taxes (173) (38) (211) Ending balance September 30, 2023, net of taxes $ (11,892) $ (5,577) $ (17,469) (1) This AOCI component is included in the computation of net periodic benefit cost (see Note 8 “ Benefit Plans ”) and includes split-dollar life insurance benefit plan. Nine Months Ended September 30, 2024 and 2023 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, 2024, net of taxes $ (7,029) (5,701) (12,730) Other comprehensive income (loss) before reclassification, net of taxes 3,940 (47) 3,893 Amounts reclassified from other comprehensive income (loss), net of taxes — (55) (55) Net current period other comprehensive income (loss), net of taxes 3,940 (102) 3,838 Ending balance September 30, 2024, net of taxes $ (3,089) $ (5,803) $ (8,892) Beginning balance January 1, 2023, net of taxes $ (11,394) $ (5,462) $ (16,856) Other comprehensive income (loss) before reclassification, net of taxes (498) (41) (539) Amounts reclassified from other comprehensive income (loss), net of taxes — (74) (74) Net current period other comprehensive income (loss), net of taxes (498) (115) (613) Ending balance September 30, 2023, net of taxes $ (11,892) $ (5,577) $ (17,469) (1) This AOCI component is included in the computation of net periodic benefit cost (see Note 8 “ Benefit Plans ”) and includes split-dollar life insurance benefit plan.
Schedule of reclassifications out of AOCI into net income	Amounts Reclassified from AOCI Three Months Ended September 30, Affected Line Item Where Details About AOCI Components 2024 2023 Net Income is Presented (Dollars in thousands) Amortization of defined benefit pension plan items (1) Prior transition obligation and actuarial losses (2) $ 52 $ 48 Prior service cost and actuarial losses (3) (26) (13) 26 35 Other noninterest expense (8) (10) Income tax benefit Total reclassification from AOCI for the period $ 18 $ 25 Net of tax (1) This AOCI component is included in the computation of net periodic benefit cost (see Note 8 “ Benefit Plans ”). (2) This is related to the split dollar life insurance benefit plan. (3) This is related to the supplemental executive retirement plan. Amounts Reclassified from AOCI Nine Months Ended September 30, Affected Line Item Where Details About AOCI Components 2024 2023 Net Income is Presented (Dollars in thousands) Amortization of defined benefit pension plan items (1) Prior transition obligation and actuarial losses (2) $ 157 $ 143 Prior service cost and actuarial losses (3) (78) (39) 79 104 Other noninterest expense (24) (30) Income tax benefit Total reclassification from AOCI for the period $ 55 $ 74 Net of tax (1) This AOCI component is included in the computation of net periodic benefit cost (see Note 8 “ Benefit Plans ”). (2) This is related to the split dollar life insurance benefit plan. (3) This is related to the supplemental executive retirement plan.

Securities (Tables)

Securities (Tables)	9 Months Ended
Securities (Tables)	Sep. 30, 2024
Securities
Schedule of amortized cost and estimated fair value of securities	Gross Gross Allowance Estimated Amortized Unrealized Unrealized for Credit Fair September 30, 2024 Cost Gains (Losses) Losses Value (Dollars in thousands) Securities available-for-sale: U.S. Treasury $ 185,602 $ — $ (1,440) $ — $ 184,162 Agency mortgage-backed securities 56,373 — (2,923) — 53,450 Total $ 241,975 $ — $ (4,363) $ — $ 237,612 Gross Gross Estimated Allowance Amortized Unrecognized Unrecognized Fair for Credit September 30, 2024 Cost Gains (Losses) Value Losses (Dollars in thousands) Securities held-to-maturity: Agency mortgage-backed securities $ 573,621 $ 381 $ (72,377) $ 501,625 $ — Municipals - exempt from Federal tax 30,584 3 (679) 29,908 (12) Total $ 604,205 $ 384 $ (73,056) $ 531,533 $ (12) 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)
Schedule of securities with unrealized losses	Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized September 30, 2024 Value (Losses) Value (Losses) Value (Losses) (Dollars in thousands) Securities available-for-sale: U.S. Treasury $ — $ — $ 184,162 $ (1,440) $ 184,162 $ (1,440) Agency mortgage-backed securities — — 53,450 (2,923) 53,450 (2,923) Total $ — $ — $ 237,612 $ (4,363) $ 237,612 $ (4,363) Securities held-to-maturity: Agency mortgage-backed securities $ — $ — $ 490,099 $ (72,377) $ 490,099 $ (72,377) Municipals — exempt from Federal tax 4,288 (40) 20,521 (639) 24,809 (679) Total $ 4,288 $ (40) $ 510,620 $ (73,016) $ 514,908 $ (73,056) 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)
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 $ 8,981 $ 8,972 Due after three months through one year 176,621 175,190 Agency mortgage-backed securities 56,373 53,450 Total $ 241,975 $ 237,612 Held-to-maturity Amortized Estimated Cost (1) Fair Value (Dollars in thousands) Due after three months through one year $ 1,805 $ 1,799 Due after one through five years 7,395 7,307 Due after five through ten years 21,384 20,802 Agency mortgage-backed securities 573,621 501,625 Total $ 604,205 $ 531,533 (1) Gross of the allowance for credit losses of ( $12,000 ) at September 30, 2024.
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, 2024 $ 12 Provision for credit losses — Ending balance September 30, 2024 $ 12

Loans and Allowance for Credi_2

Loans and Allowance for Credit Losses on Loans (Tables)	9 Months Ended
Loans and Allowance for Credit Losses on Loans (Tables)	Sep. 30, 2024
Loans and Allowance for Credit Losses on Loans
Schedule of loans	September 30, December 31, 2024 2023 (Dollars in thousands) Loans held-for-investment: Commercial $ 481,266 $ 463,778 Real estate: CRE - owner occupied 602,062 583,253 CRE - non-owner occupied 1,310,578 1,256,590 Land and construction 125,761 140,513 Home equity 124,090 119,125 Multifamily 273,103 269,734 Residential mortgages 479,524 496,961 Consumer and other 14,179 20,919 Loans 3,410,563 3,350,873 Deferred loan fees, net (327) (495) Loans, net of deferred fees 3,410,236 3,350,378 Allowance for credit losses on loans (47,819) (47,958) Loans, net $ 3,362,417 $ 3,302,420
Schedule of changes in allowance for loan (credit) losses	Three Months Ended September 30, 2024 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 $ 5,010 $ 5,344 $ 26,847 $ 1,523 $ 814 $ 4,269 $ 3,960 $ 187 $ 47,954 Charge-offs (174) — — — — — — (300) (474) Recoveries 154 14 — — 18 — — — 186 Net (charge-offs) recoveries (20) 14 — — 18 — — (300) (288) Provision for (recapture of) credit losses on loans (273) 62 603 (195) (72) 86 (291) 233 153 End of period balance $ 4,717 $ 5,420 $ 27,450 $ 1,328 $ 760 $ 4,355 $ 3,669 $ 120 $ 47,819 Three Months Ended September 30, 2023 CRE CRE Owner Non-owner Land & Home Multi- Residential Consumer Commercial Occupied Occupied Construction Equity Family Mortgages and Other Total (Dollars in thousands) Beginning of period balance $ 6,550 $ 5,463 $ 23,523 $ 2,870 $ 730 $ 4,383 $ 4,129 $ 155 $ 47,803 Charge-offs (447) — — — — — — — (447) Recoveries 59 2 — — 117 — — — 178 Net (charge-offs) recoveries (388) 2 — — 117 — — — (269) Provision for (recapture of) credit losses on loans (557) (120) 1,396 (126) (140) 331 (635) 19 168 End of period balance $ 5,605 $ 5,345 $ 24,919 $ 2,744 $ 707 $ 4,714 $ 3,494 $ 174 $ 47,702 Nine Months Ended September 30, 2024 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 $ 5,853 $ 5,121 $ 25,323 $ 2,352 $ 644 $ 5,053 $ 3,425 $ 187 $ 47,958 Charge-offs (1,042) — — — — — — (300) (1,342) Recoveries 300 24 — — 71 — — — 395 Net (charge-offs) recoveries (742) 24 — — 71 — — (300) (947) Provision for (recapture of) credit losses on loans (394) 275 2,127 (1,024) 45 (698) 244 233 808 End of period balance $ 4,717 $ 5,420 $ 27,450 $ 1,328 $ 760 $ 4,355 $ 3,669 $ 120 $ 47,819 Nine Months Ended September 30, 2023 CRE CRE Owner Non-owner Land & Home Multi- Residential Consumer Commercial Occupied Occupied Construction Equity Family Mortgages and Other Total (Dollars in thousands) Beginning of period balance $ 6,617 $ 5,751 $ 22,135 $ 2,941 $ 666 $ 3,366 $ 5,907 $ 129 $ 47,512 Charge-offs (605) — — — (246) — — — (851) Recoveries 247 10 — — 324 — — — 581 Net (charge-offs) recoveries (358) 10 — — 78 — — — (270) Provision for (recapture of) credit losses on loans (654) (416) 2,784 (197) (37) 1,348 (2,413) 45 460 End of period balance $ 5,605 $ 5,345 $ 24,919 $ 2,744 $ 707 $ 4,714 $ 3,494 $ 174 $ 47,702
Schedule of nonperforming loans	September 30, 2024 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 $ 620 $ 132 $ 460 $ 1,212 Real estate: CRE - Owner Occupied — — — — CRE - Non-Owner Occupied — — — — Land and construction 5,862 — — 5,862 Home equity 84 — — 84 Total $ 6,566 $ 132 $ 460 $ 7,158 December 31, 2023 Nonaccrual Nonaccrual 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 $ 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
Schedule of aging of past due loans by class of loans	September 30, 2024 30 - 59 60 - 89 90 Days or Days Days Greater Total Past Due Past Due Past Due Past Due Current Total (Dollars in thousands) Commercial $ 4,390 $ 1,755 $ 1,082 $ 7,227 $ 474,039 $ 481,266 Real estate: CRE - Owner Occupied — — — — 602,062 602,062 CRE - Non-Owner Occupied 4,513 — — 4,513 1,306,065 1,310,578 Land and construction — — 5,862 5,862 119,899 125,761 Home equity 659 — — 659 123,431 124,090 Multifamily — — — — 273,103 273,103 Residential mortgages — — — — 479,524 479,524 Consumer and other — — — — 14,179 14,179 Total $ 9,562 $ 1,755 $ 6,944 $ 18,261 $ 3,392,302 $ 3,410,563 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 September 30, December 31, 2024 2023 (Dollars in thousands) Past due nonaccrual loans $ 6,484 $ 6,100 Current nonaccrual loans 214 718 Total nonaccrual loans $ 6,698 $ 6,818
Summary of loan portfolio by loan type and credit quality classification	Revolving Loans Term Loans Amortized Cost Basis by Originated Period as of September 30, 2024 Amortized 2024 2023 2022 2021 2020 Prior Periods Cost Basis Total (Dollars in thousands) Commercial: Pass $ 89,567 $ 27,960 $ 18,909 $ 17,627 $ 11,351 $ 30,452 $ 275,491 $ 471,357 Special Mention 3,029 — 358 131 — 185 200 3,903 Substandard — 147 592 — — 4,415 100 5,254 Substandard-Nonaccrual — — — 223 — 529 — 752 Total 92,596 28,107 19,859 17,981 11,351 35,581 275,791 481,266 CRE - Owner Occupied: Pass 42,069 31,845 83,140 102,419 66,720 253,342 9,407 588,942 Special Mention — — — 8,282 447 1,217 — 9,946 Substandard — — — — 3,174 — — 3,174 Substandard-Nonaccrual — — — — — — — — Total 42,069 31,845 83,140 110,701 70,341 254,559 9,407 602,062 CRE - Non-Owner Occupied: Pass 97,037 223,427 232,175 255,074 27,272 446,572 3,833 1,285,390 Special Mention — — 4,841 2,201 — 1,279 — 8,321 Substandard — — — 4,514 — 11,753 600 16,867 Substandard-Nonaccrual — — — — — — — — Total 97,037 223,427 237,016 261,789 27,272 459,604 4,433 1,310,578 Land and construction: Pass 26,745 43,646 30,987 15,984 214 — — 117,576 Special Mention — — — — — 2,323 — 2,323 Substandard — — — — — — — — Substandard-Nonaccrual — — — 3,815 966 1,081 — 5,862 Total 26,745 43,646 30,987 19,799 1,180 3,404 — 125,761 Home equity: Pass — — — — — 2,098 119,357 121,455 Special Mention — — — — — — 2,110 2,110 Substandard — — — — — — 441 441 Substandard-Nonaccrual — — — — — 84 — 84 Total — — — — — 2,182 121,908 124,090 Multifamily: Pass 13,397 46,528 39,833 54,067 5,286 113,429 563 273,103 Special Mention — — — — — — — — Substandard — — — — — — — — Substandard-Nonaccrual — — — — — — — — Total 13,397 46,528 39,833 54,067 5,286 113,429 563 273,103 Residential mortgage: Pass 3,937 1,665 184,031 255,131 1,014 33,570 — 479,348 Special Mention — — — — — — — — Substandard — — — — — 176 — 176 Substandard-Nonaccrual — — — — — — — — Total 3,937 1,665 184,031 255,131 1,014 33,746 — 479,524 Consumer and other: Pass 175 674 1,339 48 — 1,998 9,871 14,105 Special Mention — — — — — 74 — 74 Substandard — — — — — — — — Substandard-Nonaccrual — — — — — — — — Total 175 674 1,339 48 — 2,072 9,871 14,179 Total loans $ 275,956 $ 375,892 $ 596,205 $ 719,516 $ 116,444 $ 904,577 $ 421,973 $ 3,410,563 Risk Grades: Pass $ 272,927 $ 375,745 $ 590,414 $ 700,350 $ 111,857 $ 881,461 $ 418,522 $ 3,351,276 Special Mention 3,029 — 5,199 10,614 447 5,078 2,310 26,677 Substandard — 147 592 4,514 3,174 16,344 1,141 25,912 Substandard-Nonaccrual — — — 4,038 966 1,694 — 6,698 Grand Total $ 275,956 $ 375,892 $ 596,205 $ 719,516 $ 116,444 $ 904,577 $ 421,973 $ 3,410,563 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 Gross Charge-offs by Originated Period for the Three Months Ended September 30, 2024 Prior Revolving 2024 2023 2022 2021 2020 Periods Loans Total (Dollars in thousands) Commercial $ — $ — $ — $ — $ — $ 25 $ 149 $ 174 Real estate: CRE - Owner Occupied — — — — — — — — CRE - Non-Owner Occupied — — — — — — — — Land and construction — — — — — — — — Home equity — — — — — — — — Multifamily — — — — — — — — Residential mortgages — — — — — — — — Consumer and other — — — — — — 300 300 Total $ — $ — $ — $ — $ — $ 25 $ 449 $ 474 Gross Charge-offs by Originated Period for the Three Months Ended September 30, 2023 Prior Revolving 2023 2022 2021 2020 2019 Periods Loans Total (Dollars in thousands) Commercial $ 1 $ 45 $ — $ — $ 229 $ 172 $ — $ 447 Real estate: CRE - Owner Occupied — — — — — — — — CRE - Non-Owner Occupied — — — — — — — — Land and construction — — — — — — — — Home equity — — — — — — — — Multifamily — — — — — — — — Residential mortgages — — — — — — — — Consumer and other — — — — — — — — Total $ 1 $ 45 $ — $ — $ 229 $ 172 $ — $ 447 Gross Charge-offs by Originated Period for the Nine Months Ended September 30, 2024 Prior Revolving 2024 2023 2022 2021 2020 Periods Loans Total (Dollars in thousands) Commercial $ — $ 416 $ — $ — $ — $ 477 $ 149 $ 1,042 Real estate: CRE - Owner Occupied — — — — — — — — CRE - Non-Owner Occupied — — — — — — — — Land and construction — — — — — — — — Home equity — — — — — — — — Multifamily — — — — — — — — Residential mortgages — — — — — — — — Consumer and other — — — — — — 300 300 Total $ — $ 416 $ — $ — $ — $ 477 $ 449 $ 1,342 Gross Charge-offs by Originated Period for the Nine Months Ended September 30, 2023 Prior Revolving 2023 2022 2021 2020 2019 Periods Loans Total (Dollars in thousands) Commercial $ 1 $ 49 $ — $ — $ 278 $ 277 $ — $ 605 Real estate: CRE - Owner Occupied — — — — — — — — CRE - Non-Owner Occupied — — — — — — — — Land and construction — — — — — — — — Home equity — — — — — — 246 246 Multifamily — — — — — — — — Residential mortgages — — — — — — — — Consumer and other — — — — — — — — Total $ 1 $ 49 $ — $ — $ 278 $ 277 $ 246 $ 851

Goodwill and Other Intangible_2

Goodwill and Other Intangible Assets (Tables)	9 Months Ended
Goodwill and Other Intangible Assets (Tables)	Sep. 30, 2024
Goodwill and Other Intangible Assets
Schedule of carrying amount of goodwill by segment	September 30, December 31, 2024 2023 (Dollars in thousands) Banking $ 154,587 $ 154,587 Factoring 13,044 13,044 Total Goodwill $ 167,631 $ 167,631
Summary of Company's intangible assets	September 30, 2024 Gross Carrying Accumulated Amount Amortization Total (Dollars in thousands) Core deposit intangibles $ 25,023 (18,164) $ 6,859 Customer relationship and brokered relationship intangibles 1,900 (1,883) 17 Below market leases 110 (20) 90 Total $ 27,033 $ (20,067) $ 6,966 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
Schedule of estimated amortization expense	Customer & Below/ Core Brokered (Above) Total Deposit Relationship Market Amortization Year Intangible Intangible Lease Expense (Dollars in thousands) 2024 remaining $ 505 $ 17 $ 4 $ 526 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 $ 6,859 $ 17 $ 90 $ 6,966

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
Income Taxes (Tables)	Sep. 30, 2024
Income Taxes
Summary of carrying amount of low income tax housing investment	September 30, December 31, 2024 2023 (Dollars in thousands) Low income housing investments $ 2,349 $ 2,794 Future commitments $ 491 $ 494

Benefit Plans (Tables)

Benefit Plans (Tables)	9 Months Ended
Benefit Plans (Tables)	Sep. 30, 2024
Supplemental Retirement Plan
Benefit plans
Schedule of components of net periodic benefit cost	Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 (Dollars in thousands) Components of net periodic benefit cost: Service cost $ 52 $ 48 $ 154 $ 144 Interest cost 318 324 954 972 Amortization of net actuarial loss 26 13 78 39 Net periodic benefit cost $ 396 $ 385 $ 1,186 $ 1,155 Amount recognized in other comprehensive income (loss) $ 18 $ 9 $ 54 $ 27
Split-Dollar Life Insurance Benefit Plan
Benefit plans
Schedule of change in projected benefit obligation	September 30, December 31, 2024 2023 (Dollars in thousands) Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 6,951 $ 7,060 Interest cost 259 365 Actuarial loss — (474) Projected benefit obligation at end of period $ 7,210 $ 6,951
Schedule of amounts recognized in accumulated other comprehensive loss	September 30, December 31, 2024 2023 (Dollars in thousands) Net actuarial loss $ (2,332) $ (2,108) Prior transition obligation (633) (701) Accumulated other comprehensive income (loss) $ (2,965) $ (2,809)
Schedule of components of net periodic benefit cost	Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 (Dollars in thousands) Amortization of prior transition obligation and actuarial losses $ (53) $ (48) $ (157) $ (143) Interest cost 87 92 259 274 Net periodic benefit cost $ 34 $ 44 $ 102 $ 131 Amount recognized in other comprehensive income (loss) $ (53) $ (48) $ (157) $ (143)

Fair Value (Tables)

Fair Value (Tables)	9 Months Ended
Fair Value (Tables)	Sep. 30, 2024
Fair Value
Schedule of financial assets and liabilities measured on a recurring basis	Fair Value Measurements Using Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Balance (Level 1) (Level 2) (Level 3) (Dollars in thousands) Assets at September 30, 2024 Available-for-sale securities: U.S. Treasury $ 184,162 $ 184,162 $ — $ — Agency mortgage-backed securities 53,450 — 53,450 — I/O strip receivables 95 — 95 — 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 —
Schedule of carrying amounts and estimated fair values of the company's financial instruments	The carrying amounts and estimated fair values of the Company’s financial instruments at September 30, 2024 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 $ 956,310 $ 956,310 $ — $ — $ 956,310 Securities available-for-sale 237,612 184,162 53,450 — 237,612 Securities held-to-maturity 604,193 — 531,533 — 531,533 Loans (including loans held-for-sale) 3,411,885 (1) — 1,649 3,246,881 3,248,530 FHLB stock, FRB stock, and other investments 32,553 — — — N/A Accrued interest receivable 15,220 604 3,020 11,596 15,220 I/O strips receivables 95 — 95 — 95 Liabilities: Time deposits $ 523,396 $ — $ 525,656 $ — $ 525,656 Other deposits 4,206,137 — 4,206,137 — 4,206,137 Subordinated debt 39,615 — 33,215 — 33,215 Accrued interest payable 7,037 — 7,037 — 7,037 (1) Before allowance for credit losses on loans of $47,819,000. The carrying amounts and estimated fair values of the Company’s 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 — 4,698 — 4,698 (1) Before allowance for credit losses on loans of $47,958,000.

Equity Plan (Tables)

Equity Plan (Tables)	9 Months Ended
Equity Plan (Tables)	Sep. 30, 2024
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, 2024 2,637,356 $ 10.40 Exercised (88,764) $ 5.39 Forfeited or expired (222,399) $ 10.58 Outstanding at September 30, 2024 2,326,193 $ 10.58 5.07 $ 1,867,043 Vested or expected to vest 2,186,621 5.07 $ 1,755,020 Exercisable at September 30, 2024 1,898,485 4.39 $ 1,328,659
Schedule of information related to stock option activity under the Equity Plans	Nine Months Ended September 30, 2024 2023 Intrinsic value of options exercised $ 321,882 $ 620,013 Cash received from option exercise $ 478,358 $ 996,453 Tax (expense) benefit realized from option exercises $ (17,785) $ (5,902) Weighted average fair value of options granted N/A $ 1.32
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, 2024 185,413 $ 10.87 Granted 57,123 $ 8.49 Vested (123,260) $ 9.12 Forfeited or expired (31,215) $ 11.43 Nonvested shares at September 30, 2024 88,061 $ 9.45
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, 2024 119,362 $ 7.41 Granted 273,841 $ 8.47 Vested (35,837) $ 7.46 Forfeited or expired (40,589) $ 7.84 Nonvested shares at September 30, 2024 316,777 $ 8.26
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, 2024 119,358 $ 7.41 Granted 149,923 $ 8.49 Forfeited or expired (39,862) $ 7.75 Nonvested shares at September 30, 2024 229,419 $ 8.06

Borrowing Arrangements (Tables)

Borrowing Arrangements (Tables)	9 Months Ended
Borrowing Arrangements (Tables)	Sep. 30, 2024
Borrowing Arrangements
Schedule of collateral value of loans and securities pledged	September 30, 2024 Collateral Total Remaining Value Available Outstanding Available (Dollars in thousands) FHLB collateralized borrowing capacity $ 1,204,712 $ 765,134 $ — $ 765,134 FRB discount window collateralized line of credit 1,755,474 1,397,326 — 1,397,326 Federal funds purchase arrangements N/A 90,000 — 90,000 Holding company line of credit N/A 25,000 — 25,000 $ 2,960,186 $ 2,277,460 $ — $ 2,277,460 December 31, 2023 Collateral Total Remaining Value Available Outstanding Available (Dollars in thousands) FHLB collateralized borrowing capacity $ 1,600,371 $ 1,100,931 $ — $ 1,100,931 FRB discount window collateralized line of credit 1,658,642 1,235,573 — 1,235,573 Federal funds purchase arrangements N/A 90,000 — 90,000 Holding company line of credit N/A 20,000 — 20,000 Total $ 3,259,013 $ 2,446,504 $ — $ 2,446,504

Capital Requirements (Tables)

Capital Requirements (Tables)	9 Months Ended
Capital Requirements (Tables)	Sep. 30, 2024
Capital Requirements
Schedule of actual capital and required amounts and ratios	Required For Capital Adequacy Purposes Actual Under Basel III Amount Ratio Amount Ratio (1) (Dollars in thousands) As of September 30, 2024 Total Capital $ 605,396 15.6 % $ 406,919 10.5 % (to risk-weighted assets) Tier 1 Capital $ 520,133 13.4 % $ 329,411 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 520,133 13.4 % $ 271,279 7.0 % (to risk-weighted assets) Tier 1 Capital $ 520,133 10.0 % $ 207,279 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, 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.
HBC
Capital Requirements
Schedule of actual capital and required amounts and ratios	Required For Capital To Be Well-Capitalized Adequacy Under PCA Regulatory Purposes Actual Guidelines Under Basel III Amount Ratio Amount Ratio Amount Ratio (1) (Dollars in thousands) As of September 30, 2024 Total Capital $ 585,034 15.1 % $ 387,242 10.0 % $ 406,604 10.5 % (to risk-weighted assets) Tier 1 Capital $ 539,386 13.9 % $ 309,793 8.0 % $ 329,156 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 539,386 13.9 % $ 251,707 6.5 % $ 271,069 7.0 % (to risk-weighted assets) Tier 1 Capital $ 539,386 10.4 % $ 258,949 5.0 % $ 207,159 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, 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.

Commitments and Loss Continge_2

Commitments and Loss Contingencies (Tables)	9 Months Ended
Commitments and Loss Contingencies (Tables)	Sep. 30, 2024
Commitments and Loss Contingencies
Schedule of commitments to extend credit	September 30, 2024 December 31, 2023 Fixed Variable Fixed Variable Rate Rate Total Rate Rate Total (Dollars in thousands) Unused lines of credit and commitments to make loans $ 122,471 $ 972,291 $ 1,094,762 $ 96,166 $ 1,041,608 $ 1,137,774 Standby letters of credit 6,178 16,835 23,013 4,283 6,999 11,282 $ 128,649 $ 989,126 $ 1,117,775 $ 100,449 $ 1,048,607 $ 1,149,056

Revenue Recognition (Tables)

Revenue Recognition (Tables)	9 Months Ended
Revenue Recognition (Tables)	Sep. 30, 2024
Revenue Recognition
Schedule of noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606	Three Months Ended September 30, 2024 2023 (Dollars in thousands) Noninterest Income In-scope of Topic 606: Service charges and fees on deposit accounts $ 908 $ 859 Total noninterest income in-scope of Topic 606 908 859 Noninterest Income Out-of-scope of Topic 606 1,332 1,357 Total noninterest income $ 2,240 $ 2,216 Nine Months Ended September 30, 2024 2023 (Dollars in thousands) Noninterest Income In-scope of Topic 606: Service charges and fees on deposit accounts $ 2,676 $ 3,503 Total noninterest income in-scope of Topic 606 2,676 3,503 Noninterest Income Out-of-scope of Topic 606 3,887 3,553 Total noninterest income $ 6,563 $ 7,056

Noninterest Expense (Tables)

Noninterest Expense (Tables)	9 Months Ended
Noninterest Expense (Tables)	Sep. 30, 2024
Noninterest Expense
Schedule of noninterest expense	Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 (Dollars in thousands) Salaries and employee benefits $ 15,673 $ 14,147 $ 46,976 $ 42,943 Occupancy and equipment 2,599 2,301 7,731 7,123 Insurance expense 1,715 1,595 4,988 4,627 Professional fees 1,306 717 3,705 3,265 Client services 809 682 2,497 1,633 Data processing 800 906 2,635 2,593 Software subscriptions 743 682 2,034 1,903 Other 3,910 4,141 12,713 11,476 Total noninterest expense $ 27,555 $ 25,171 $ 83,279 $ 75,563

Leases (Tables)

Leases (Tables)	9 Months Ended
Leases (Tables)	Sep. 30, 2024
Leases
Schedule of quantitative information for the Company's leases	Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 (Dollars in thousands) Operating Lease Cost (Cost resulting from lease payments) $ 1,727 $ 1,677 $ 5,125 $ 5,087 Operating Lease - Operating Cash Flows (Fixed Payments) $ 1,764 $ 1,678 $ 5,165 $ 5,026 Operating Lease - ROU assets $ 31,912 $ 31,979 $ 31,912 $ 31,979 Operating Lease - Liabilities $ 31,912 $ 31,979 $ 31,912 $ 31,979 Weighted Average Lease Term - Operating Leases 5.32 years 6.10 years 5.32 years 6.10 years Weighted Average Discount Rate - Operating Leases 5.56% 4.86% 5.56% 4.86%
Schedule of maturity analysis shows the undiscounted cash flows due on the company's operating lease liabilities	(Dollars in thousands) 2024 remaining $ 1,778 2025 7,145 2026 6,603 2027 6,380 2028 5,779 Thereafter 9,457 Total undiscounted cash flows 37,142 Discount on cash flows (5,230) Total lease liability $ 31,912

Business Segment Information (T

Business Segment Information (Tables)	9 Months Ended
Business Segment Information (Tables)	Sep. 30, 2024
Business Segment Information
Schedule of information by operating segment	Three Months Ended September 30, 2024 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 59,294 $ 2,144 $ 61,438 Intersegment interest allocations 470 (470) — Total interest expense 21,523 — 21,523 Net interest income 38,241 1,674 39,915 Provision for (recapture of) credit losses on loans 186 (33) 153 Net interest income after provision 38,055 1,707 39,762 Noninterest income 1,982 258 2,240 Noninterest expense 25,808 1,747 27,555 Intersegment expense allocations 121 (121) — Income before income taxes 14,350 97 14,447 Income tax expense 3,911 29 3,940 Net income $ 10,439 $ 68 $ 10,507 Total assets $ 5,466,494 $ 85,102 $ 5,551,596 Loans, net of deferred fees $ 3,353,037 $ 57,199 $ 3,410,236 Goodwill $ 154,587 $ 13,044 $ 167,631 Three Months Ended September 30, 2023 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 58,016 $ 2,775 $ 60,791 Intersegment interest allocations 397 (397) — Total interest expense 15,419 — 15,419 Net interest income 42,994 2,378 45,372 Provision for (recapture of) credit losses on loans 254 (86) 168 Net interest income after provision 42,740 2,464 45,204 Noninterest income 2,044 172 2,216 Noninterest expense 23,588 1,583 25,171 Intersegment expense allocations 109 (109) — Income before income taxes 21,305 944 22,249 Income tax expense 6,175 279 6,454 Net income $ 15,130 $ 665 $ 15,795 Total assets $ 5,314,922 $ 88,385 $ 5,403,307 Loans, net of deferred fees $ 3,233,379 $ 52,082 $ 3,285,461 Goodwill $ 154,587 $ 13,044 $ 167,631 (1) Includes the holding company’s results of operations Nine Months Ended September 30, 2024 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 170,170 $ 7,896 $ 178,066 Intersegment interest allocations 1,346 (1,346) — Total interest expense 58,603 — 58,603 Net interest income 112,913 6,550 119,463 Provision for credit losses on loans 556 252 808 Net interest income after provision 112,357 6,298 118,655 Noninterest income 6,030 533 6,563 Noninterest expense 78,438 4,841 83,279 Intersegment expense allocations 381 (381) — Income before income taxes 40,330 1,609 41,939 Income tax expense 11,556 476 12,032 Net income $ 28,774 $ 1,133 $ 29,907 Total assets $ 5,466,494 $ 85,102 $ 5,551,596 Loans, net of deferred fees $ 3,353,037 $ 57,199 $ 3,410,236 Goodwill $ 154,587 $ 13,044 $ 167,631 Nine Months Ended September 30, 2023 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 164,783 $ 10,623 $ 175,406 Intersegment interest allocations 1,626 (1,626) — Total interest expense 34,483 — 34,483 Net interest income 131,926 8,997 140,923 Provision (recapture) for credit losses on loans 807 (347) 460 Net interest income after provision 131,119 9,344 140,463 Noninterest income 6,743 313 7,056 Noninterest expense 70,645 4,918 75,563 Intersegment expense allocations 435 (435) — Income before income taxes 67,652 4,304 71,956 Income tax expense 19,572 1,269 20,841 Net income $ 48,080 $ 3,035 $ 51,115 Total assets $ 5,314,922 $ 88,385 $ 5,403,307 Loans, net of deferred fees $ 3,233,379 $ 52,082 $ 3,285,461 Goodwill $ 154,587 $ 13,044 $ 167,631 (1) Includes the holding company’s results of operations

Basis of Presentation (Details)

Basis of Presentation (Details)	9 Months Ended
Basis of Presentation (Details)	Sep. 30, 2024 customer segment
Segment Reporting
Number of customers accounting for more than 10 percent of revenue for HBC or the Company \| customer	0
Number of business segments \| segment	2

Shareholders' Equity and Earn_3

Shareholders' Equity and Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023	Jul. 25, 2024
Reconciliation of factors used in computing basic and diluted earnings per common share
Share repurchase program, Authorized to repurchase amount									$ 15,000,000,000
Net income	$ 10,507	$ 9,234	$ 10,166	$ 15,795	$ 16,403	$ 18,917	$ 29,907	$ 51,115
Weighted average common shares outstanding for basic earnings per common share (in shares)	61,295,877			61,093,289			61,254,138	61,012,315
Dilutive potential common shares	250,280			342,951			243,789	272,275
Shares used in computing diluted earnings per common share (in shares)	61,546,157			61,436,240			61,497,927	61,284,590
Basic earnings per share (in dollars per share)	$ 0.17			$ 0.26			$ 0.49	$ 0.84
Diluted earnings per share (in dollars per share)	$ 0.17			$ 0.26			$ 0.49	$ 0.83
Number of shares in computing diluted earnings per common share	1,440,168			1,905,852			1,841,601	1,763,377
Restricted Stock Units (RSUs)
Reconciliation of factors used in computing basic and diluted earnings per common share
Number of shares in computing diluted earnings per common share	1,467			0			493	66,458

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Loss) (AOCI) - Changes in AOCI by Component (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023
Changes in AOCI by Component
Balance at the beginning of the period, net of taxes			$ (12,730)				$ (12,730)
Net current period other comprehensive income (loss), net of taxes	$ 2,823	$ 873	142	$ (211)	$ (2,941)	$ 2,539	3,838	$ (613)
Balance at the end of the period, net of taxes	(8,892)						(8,892)
Accumulated Other Comprehensive Income (Loss)
Changes in AOCI by Component
Balance at the beginning of the period, net of taxes	(11,715)		(12,730)	(17,258)		(16,856)	(12,730)	(16,856)
Other comprehensive income (loss) before reclassification, net of taxes	2,841			(186)			3,893	(539)
Amounts reclassified from other comprehensive income (loss), net of taxes	(18)			(25)			(55)	(74)
Net current period other comprehensive income (loss), net of taxes	2,823	873	142	(211)	(2,941)	2,539	3,838	(613)
Balance at the end of the period, net of taxes	(8,892)	(11,715)		(17,469)	(17,258)		(8,892)	(17,469)
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	(5,946)		(7,029)	(11,719)		(11,394)	(7,029)	(11,394)
Other comprehensive income (loss) before reclassification, net of taxes	2,857			(173)			3,940	(498)
Net current period other comprehensive income (loss), net of taxes	2,857			(173)			3,940	(498)
Balance at the end of the period, net of taxes	(3,089)	(5,946)		(11,892)	(11,719)		(3,089)	(11,892)
Defined Benefit Pension Plan Items
Changes in AOCI by Component
Balance at the beginning of the period, net of taxes	(5,769)		$ (5,701)	(5,539)		$ (5,462)	(5,701)	(5,462)
Other comprehensive income (loss) before reclassification, net of taxes	(16)			(13)			(47)	(41)
Amounts reclassified from other comprehensive income (loss), net of taxes	(18)			(25)			(55)	(74)
Net current period other comprehensive income (loss), net of taxes	(34)			(38)			(102)	(115)
Balance at the end of the period, net of taxes	$ (5,803)	$ (5,769)		$ (5,577)	$ (5,539)		$ (5,803)	$ (5,577)

Accumulated Other Comprehensi_4

Accumulated Other Comprehensive Income (Loss) (AOCI)- Amount Reclassified from AOCI (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Defined Benefit Pension Plan Items
Amount Reclassified from AOCI
Net of tax	$ 18	$ 25	$ 55	$ 74
Defined Benefit Pension Plan Items \| Amount Reclassified from AOCI
Amount Reclassified from AOCI
Other noninterest expense	26	35	79	104
Income tax benefit	(8)	(10)	(24)	(30)
Prior transition obligation and actuarial losses \| Amount Reclassified from AOCI
Amount Reclassified from AOCI
Other noninterest expense	52	48	157	143
Prior service cost and actuarial losses \| Amount Reclassified from AOCI
Amount Reclassified from AOCI
Other noninterest expense	(26)	(13)	(78)	(39)
Accumulated Other Comprehensive Loss
Amount Reclassified from AOCI
Net of tax	18	25	55	74
Accumulated Other Comprehensive Loss \| Amount Reclassified from AOCI
Amount Reclassified from AOCI
Net of tax	$ 18	$ 25	$ 55	$ 74

Securities - Amortized Cost and

Securities - Amortized Cost and Estimated Fair Value of Securities - Securities Available-for-sale (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Securities available-for-sale:
Total	$ 241,975	$ 452,570
Gross Unrealized (Losses)	(4,363)	(9,934)
Estimated Fair Value	237,612	442,636
U.S. Treasury
Securities available-for-sale:
Total	185,602	387,990
Gross Unrealized (Losses)	(1,440)	(5,621)
Estimated Fair Value	184,162	382,369
Agency mortgage-backed securities
Securities available-for-sale:
Total	56,373	64,580
Gross Unrealized (Losses)	(2,923)	(4,313)
Estimated Fair Value	$ 53,450	$ 60,267

Securities - Amortized Cost a_2

Securities - Amortized Cost and Estimated Fair Value of Securities - Securities Held-to-maturity (Details) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Securities held-to-maturity:
Total	$ 604,205,000	$ 650,577,000
Gross Unrecognized Gains	384,000	285,000
Gross Unrecognized (Losses)	(73,056,000)	(86,735,000)
Estimated Fair Value	531,533,000	564,127,000
Allowance for credit loss current period	(12,000)	(12,000)
Agency mortgage-backed securities
Securities held-to-maturity:
Total	573,621,000	618,374,000
Gross Unrecognized Gains	381,000	282,000
Gross Unrecognized (Losses)	(72,377,000)	(86,011,000)
Estimated Fair Value	501,625,000	532,645,000
Municipals - exempt from Federal tax
Securities held-to-maturity:
Total	30,584,000	32,203,000
Gross Unrecognized Gains	3,000	3,000
Gross Unrecognized (Losses)	(679,000)	(724,000)
Estimated Fair Value	29,908,000	31,482,000
Allowance for credit loss current period	$ (12,000)	$ (12,000)

Securities - Securities with Un

Securities - Securities with Unrealized Losses - Securities Held-to-maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Securities, Fair Value
Less Than 12 Months		$ 4,926
12 Months or More	$ 237,612	437,710
Total	237,612	442,636
Less Than 12 Months	4,288	9,790
12 Months or More	510,620	533,766
Total	514,908	543,556
Securities, Unrealized (Losses)
Less Than 12 Months		(40)
12 Months or More	(4,363)	(9,894)
Total	(4,363)	(9,934)
Less Than 12 Months	(40)	(176)
12 Months or More	(73,016)	(86,559)
Total	(73,056)	(86,735)
U.S. Treasury
Securities, Fair Value
Less Than 12 Months		4,926
12 Months or More	184,162	377,443
Total	184,162	382,369
Securities, Unrealized (Losses)
Less Than 12 Months		(40)
12 Months or More	(1,440)	(5,581)
Total	(1,440)	(5,621)
Agency mortgage-backed securities
Securities, Fair Value
12 Months or More	53,450	60,267
Total	53,450	60,267
12 Months or More	490,099	520,615
Total	490,099	520,615
Securities, Unrealized (Losses)
12 Months or More	(2,923)	(4,313)
Total	(2,923)	(4,313)
12 Months or More	(72,377)	(86,011)
Total	(72,377)	(86,011)
Municipals - exempt from Federal tax
Securities, Fair Value
Less Than 12 Months	4,288	9,790
12 Months or More	20,521	13,151
Total	24,809	22,941
Securities, Unrealized (Losses)
Less Than 12 Months	(40)	(176)
12 Months or More	(639)	(548)
Total	$ (679)	$ (724)

Securities - Additional Informa

Securities - Additional Information (Details)	9 Months Ended
Securities - Additional Information (Details)	Sep. 30, 2024 item security
Additional Information
The number of holdings of securities of any one issuer other than the U.S. Government and its sponsored entities \| security	0
Holdings of securities as percentage of shareholders' equity, considered as threshold for disclosure purpose	10%
Number of securities held	396
Number of available for sale securities held	130
Number of held to maturity securities held	266
Number of securities with fair values below amortized cost	375

Securities - Amortized Cost a_3

Securities - Amortized Cost and Fair Value of Debt Securities by Contractual Maturity - Securities Available-for-sale (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Available-for-sale, Amortized Cost
Due three months or less	$ 8,981
Due after three months through one year	176,621
Agency mortgage-backed securities	56,373
Total	241,975	$ 452,570
Available-for-sale, Estimated Fair Value
Due 3 months or less	8,972
Due after three months through one year	175,190
Agency mortgage-backed securities	53,450
Total	$ 237,612	$ 442,636

Securities - Amortized Cost a_4

Securities - Amortized Cost and Fair Value of Debt Securities by Contractual Maturity - Securities Held-to-maturity (Details) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Held-to-maturity, Amortized Cost
Due after three months through one year	$ 1,805,000
Due after one through five years	7,395,000
Due after five through ten years	21,384,000
Agency mortgage-backed securities	573,621,000
Total	604,205,000
Held-to-maturity, Estimated Fair Value
Due after three months through one year	1,799,000
Due after one through five years	7,307,000
Due after five through ten years	20,802,000
Agency mortgage-backed securities	501,625,000
Total	531,533,000	$ 564,127,000
Allowance for credit loss current period	$ 12,000	$ 12,000

Securities - Securities Pledged

Securities - Securities Pledged to Secure Public Deposits and for Other Purposes (Details) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Securities Pledged to Secure Public Deposits and for Other Purposes
Amortized cost of securities pledged to secure the Bank's lines of credit and for other purposes as required or permitted by law or contract	$ 777,327,000	$ 1,041,608,000

Securities - Roll-forward by ma

Securities - Roll-forward by major security type (Details)	Sep. 30, 2024 USD ($)
Securities
Allowance for credit loss current period - Beginning Balance	$ 12,000
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 ($)	Sep. 30, 2024	Jun. 30, 2024	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022
Loans held-for-investment:
Total loan balance	$ 3,410,563,000		$ 3,350,873,000
Deferred loan fees, net	(327,000)		(495,000)
Loans, net of deferred fees	3,410,236,000		3,350,378,000	$ 3,285,461,000
Allowance for credit losses on loans	(47,819,000)	$ (47,954,000)	(47,958,000)	(47,702,000)	$ (47,803,000)	$ (47,512,000)
Loans, net	3,362,417,000		3,302,420,000
Commercial. \| Commercial
Loans held-for-investment:
Total loan balance	481,266,000		463,778,000
Allowance for credit losses on loans	(4,717,000)	(5,010,000)	(5,853,000)	(5,605,000)	(6,550,000)	(6,617,000)
Real estate \| CRE - Owner Occupied
Loans held-for-investment:
Total loan balance	602,062,000		583,253,000
Allowance for credit losses on loans	(5,420,000)	(5,344,000)	(5,121,000)	(5,345,000)	(5,463,000)	(5,751,000)
Real estate \| CRE - Non-Owner Occupied
Loans held-for-investment:
Total loan balance	1,310,578,000		1,256,590,000
Allowance for credit losses on loans	(27,450,000)	(26,847,000)	(25,323,000)	(24,919,000)	(23,523,000)	(22,135,000)
Real estate \| Land & Construction
Loans held-for-investment:
Total loan balance	125,761,000		140,513,000
Allowance for credit losses on loans	(1,328,000)	(1,523,000)	(2,352,000)	(2,744,000)	(2,870,000)	(2,941,000)
Real estate \| Home Equity
Loans held-for-investment:
Total loan balance	124,090,000		119,125,000
Allowance for credit losses on loans	(760,000)	(814,000)	(644,000)	(707,000)	(730,000)	(666,000)
Real estate \| Multi-Family
Loans held-for-investment:
Total loan balance	273,103,000		269,734,000
Allowance for credit losses on loans	(4,355,000)	(4,269,000)	(5,053,000)	(4,714,000)	(4,383,000)	(3,366,000)
Real estate \| Residential Mortgage
Loans held-for-investment:
Total loan balance	479,524,000		496,961,000
Allowance for credit losses on loans	(3,669,000)	(3,960,000)	(3,425,000)	(3,494,000)	(4,129,000)	(5,907,000)
Real estate \| Consumer and Other
Loans held-for-investment:
Total loan balance			20,919,000
Consumer \| Consumer and Other
Loans held-for-investment:
Total loan balance	14,179,000		20,919,000
Allowance for credit losses on loans	$ (120,000)	$ (187,000)	$ (187,000)	$ (174,000)	$ (155,000)	$ (129,000)

Loans and Allowance for Credi_4

Loans and Allowance for Credit Losses on Loans - Changes in the Allowance for Loan Losses (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning of period balance	$ 47,954,000	$ 47,803,000	$ 47,958,000	$ 47,512,000
Charge-offs	(474,000)	(447,000)	(1,342,000)	(851,000)
Recoveries	186,000	178,000	395,000	581,000
Net (charge-offs) recoveries	(288,000)	(269,000)	(947,000)	(270,000)
Provision for (recapture of) credit losses on loans	153,000	168,000	808,000	460,000
End of period balance	47,819,000	47,702,000	47,819,000	47,702,000
Commercial. \| Commercial
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning of period balance	5,010,000	6,550,000	5,853,000	6,617,000
Charge-offs	(174,000)	(447,000)	(1,042,000)	(605,000)
Recoveries	154,000	59,000	300,000	247,000
Net (charge-offs) recoveries	(20,000)	(388,000)	(742,000)	(358,000)
Provision for (recapture of) credit losses on loans	(273,000)	(557,000)	(394,000)	(654,000)
End of period balance	4,717,000	5,605,000	4,717,000	5,605,000
Real estate \| CRE - Owner Occupied
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning of period balance	5,344,000	5,463,000	5,121,000	5,751,000
Recoveries	14,000	2,000	24,000	10,000
Net (charge-offs) recoveries	14,000	2,000	24,000	10,000
Provision for (recapture of) credit losses on loans	62,000	(120,000)	275,000	(416,000)
End of period balance	5,420,000	5,345,000	5,420,000	5,345,000
Real estate \| CRE - Non-Owner Occupied
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning of period balance	26,847,000	23,523,000	25,323,000	22,135,000
Provision for (recapture of) credit losses on loans	603,000	1,396,000	2,127,000	2,784,000
End of period balance	27,450,000	24,919,000	27,450,000	24,919,000
Real estate \| Land & Construction
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning of period balance	1,523,000	2,870,000	2,352,000	2,941,000
Provision for (recapture of) credit losses on loans	(195,000)	(126,000)	(1,024,000)	(197,000)
End of period balance	1,328,000	2,744,000	1,328,000	2,744,000
Real estate \| Home Equity
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning of period balance	814,000	730,000	644,000	666,000
Charge-offs				(246,000)
Recoveries	18,000	117,000	71,000	324,000
Net (charge-offs) recoveries	18,000	117,000	71,000	78,000
Provision for (recapture of) credit losses on loans	(72,000)	(140,000)	45,000	(37,000)
End of period balance	760,000	707,000	760,000	707,000
Real estate \| Multi-Family
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning of period balance	4,269,000	4,383,000	5,053,000	3,366,000
Provision for (recapture of) credit losses on loans	86,000	331,000	(698,000)	1,348,000
End of period balance	4,355,000	4,714,000	4,355,000	4,714,000
Real estate \| Residential Mortgage
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning of period balance	3,960,000	4,129,000	3,425,000	5,907,000
Provision for (recapture of) credit losses on loans	(291,000)	(635,000)	244,000	(2,413,000)
End of period balance	3,669,000	3,494,000	3,669,000	3,494,000
Consumer \| Consumer and Other
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning of period balance	187,000	155,000	187,000	129,000
Charge-offs	(300,000)		(300,000)
Net (charge-offs) recoveries	(300,000)		(300,000)
Provision for (recapture of) credit losses on loans	233,000	19,000	233,000	45,000
End of period balance	$ 120,000	$ 174,000	$ 120,000	$ 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	Sep. 30, 2024	Dec. 31, 2023
Nonperforming Loans by Class
Nonaccrual with no Specific Allowance for Credit Losses	$ 6,566	$ 6,528
Nonaccrual with Specific Allowance for Credit	132	290
Loans over 90 Days Past Due and Still Accruing	460	889
Total	7,158	7,707
Commercial. \| Commercial
Nonperforming Loans by Class
Nonaccrual with no Specific Allowance for Credit Losses	620	946
Nonaccrual with Specific Allowance for Credit	132	290
Loans over 90 Days Past Due and Still Accruing	460	889
Total	1,212	2,125
Real estate \| Land & Construction
Nonperforming Loans by Class
Nonaccrual with no Specific Allowance for Credit Losses	5,862	4,661
Total	5,862	4,661
Real estate \| Home Equity
Nonperforming Loans by Class
Nonaccrual with no Specific Allowance for Credit Losses	84	142
Total	$ 84	142
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 ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Aging of Past Due Loans by Class of Loans
Total loan balance	$ 3,410,563	$ 3,350,873
30-59 Days Past Due
Aging of Past Due Loans by Class of Loans
Total loan balance	9,562	12,726
60-89 Days Past Due
Aging of Past Due Loans by Class of Loans
Total loan balance	1,755	2,540
90 Days or Greater Past Due
Aging of Past Due Loans by Class of Loans
Total loan balance	6,944	5,891
Past due
Aging of Past Due Loans by Class of Loans
Total loan balance	18,261	21,157
Current
Aging of Past Due Loans by Class of Loans
Total loan balance	3,392,302	3,329,716
Commercial. \| Commercial
Aging of Past Due Loans by Class of Loans
Total loan balance	481,266	463,778
Commercial. \| Commercial \| 30-59 Days Past Due
Aging of Past Due Loans by Class of Loans
Total loan balance	4,390	6,688
Commercial. \| Commercial \| 60-89 Days Past Due
Aging of Past Due Loans by Class of Loans
Total loan balance	1,755	2,030
Commercial. \| Commercial \| 90 Days or Greater Past Due
Aging of Past Due Loans by Class of Loans
Total loan balance	1,082	1,264
Commercial. \| Commercial \| Past due
Aging of Past Due Loans by Class of Loans
Total loan balance	7,227	9,982
Commercial. \| Commercial \| Current
Aging of Past Due Loans by Class of Loans
Total loan balance	474,039	453,796
Real estate \| CRE - Owner Occupied
Aging of Past Due Loans by Class of Loans
Total loan balance	602,062	583,253
Real estate \| CRE - Owner Occupied \| Current
Aging of Past Due Loans by Class of Loans
Total loan balance	602,062	583,253
Real estate \| CRE - Non-Owner Occupied
Aging of Past Due Loans by Class of Loans
Total loan balance	1,310,578	1,256,590
Real estate \| CRE - Non-Owner Occupied \| 30-59 Days Past Due
Aging of Past Due Loans by Class of Loans
Total loan balance	4,513	1,289
Real estate \| CRE - Non-Owner Occupied \| Past due
Aging of Past Due Loans by Class of Loans
Total loan balance	4,513	1,289
Real estate \| CRE - Non-Owner Occupied \| Current
Aging of Past Due Loans by Class of Loans
Total loan balance	1,306,065	1,255,301
Real estate \| Land & Construction
Aging of Past Due Loans by Class of Loans
Total loan balance	125,761	140,513
Real estate \| Land & Construction \| 30-59 Days Past Due
Aging of Past Due Loans by Class of Loans
Total loan balance		955
Real estate \| Land & Construction \| 90 Days or Greater Past Due
Aging of Past Due Loans by Class of Loans
Total loan balance	5,862	3,706
Real estate \| Land & Construction \| Past due
Aging of Past Due Loans by Class of Loans
Total loan balance	5,862	4,661
Real estate \| Land & Construction \| Current
Aging of Past Due Loans by Class of Loans
Total loan balance	119,899	135,852
Real estate \| Home Equity
Aging of Past Due Loans by Class of Loans
Total loan balance	124,090	119,125
Real estate \| Home Equity \| 30-59 Days Past Due
Aging of Past Due Loans by Class of Loans
Total loan balance	659
Real estate \| Home Equity \| 90 Days or Greater Past Due
Aging of Past Due Loans by Class of Loans
Total loan balance		142
Real estate \| Home Equity \| Past due
Aging of Past Due Loans by Class of Loans
Total loan balance	659	142
Real estate \| Home Equity \| Current
Aging of Past Due Loans by Class of Loans
Total loan balance	123,431	118,983
Real estate \| Multi-Family
Aging of Past Due Loans by Class of Loans
Total loan balance	273,103	269,734
Real estate \| Multi-Family \| Current
Aging of Past Due Loans by Class of Loans
Total loan balance	273,103	269,734
Real estate \| Residential Mortgage
Aging of Past Due Loans by Class of Loans
Total loan balance	479,524	496,961
Real estate \| Residential Mortgage \| 30-59 Days Past Due
Aging of Past Due Loans by Class of Loans
Total loan balance		3,794
Real estate \| Residential Mortgage \| 60-89 Days Past Due
Aging of Past Due Loans by Class of Loans
Total loan balance		510
Real estate \| Residential Mortgage \| 90 Days or Greater Past Due
Aging of Past Due Loans by Class of Loans
Total loan balance		779
Real estate \| Residential Mortgage \| Past due
Aging of Past Due Loans by Class of Loans
Total loan balance		5,083
Real estate \| Residential Mortgage \| Current
Aging of Past Due Loans by Class of Loans
Total loan balance	479,524	491,878
Real estate \| Consumer and Other
Aging of Past Due Loans by Class of Loans
Total loan balance		20,919
Real estate \| Consumer and Other \| Current
Aging of Past Due Loans by Class of Loans
Total loan balance		20,919
Consumer \| Consumer and Other
Aging of Past Due Loans by Class of Loans
Total loan balance	14,179	$ 20,919
Consumer \| Consumer and Other \| Current
Aging of Past Due Loans by Class of Loans
Total loan balance	$ 14,179

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 ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Aging of Past Due Loans by Class of Loans
Total loan balance	$ 3,410,563	$ 3,350,873
Nonaccrual loans	6,698	6,818
Nonaccrual loans	7,158	7,707
Past due
Aging of Past Due Loans by Class of Loans
Total loan balance	18,261	21,157
Nonaccrual loans	6,484	6,100
Current
Aging of Past Due Loans by Class of Loans
Total loan balance	3,392,302	3,329,716
Nonaccrual loans	$ 214	$ 718

Loans and Allowance for Credi_8

Loans and Allowance for Credit Losses on Loans - Credit Quality Indicators (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Loans
2024/2023	$ 275,956	$ 455,535
2023/2022	375,892	642,395
2022/2021	596,205	757,210
2021/2020	719,516	128,649
2020/2019	116,444	217,307
Prior Periods	904,577	743,954
Revolving Loans Amortized Cost Basis	421,973	405,823
Total loan balance	3,410,563	3,350,873
Balance to report	3,362,417	3,302,420
Risk Grades
Loans
2024/2023	275,956	455,535
2023/2022	375,892	642,395
2022/2021	596,205	757,210
2021/2020	719,516	128,649
2020/2019	116,444	217,307
Prior Periods	904,577	743,954
Revolving Loans Amortized Cost Basis	421,973	405,823
Total loan balance	3,410,563	3,350,873
Risk Grades \| Pass
Loans
2024/2023	272,927	449,132
2023/2022	375,745	637,785
2022/2021	590,414	749,811
2021/2020	700,350	127,132
2020/2019	111,857	208,280
Prior Periods	881,461	715,749
Revolving Loans Amortized Cost Basis	418,522	398,528
Total loan balance	3,351,276	3,286,417
Risk Grades \| Special Mention
Loans
2024/2023	3,029	4,270
2023/2022		1,342
2022/2021	5,199	3,344
2021/2020	10,614	462
2020/2019	447	7,626
Prior Periods	5,078	13,072
Revolving Loans Amortized Cost Basis	2,310	2,577
Total loan balance	26,677	32,693
Risk Grades \| Substandard
Loans
2024/2023		2,133
2023/2022	147	2,489
2022/2021	592
2021/2020	4,514	100
2020/2019	3,174	1,285
Prior Periods	16,344	14,362
Revolving Loans Amortized Cost Basis	1,141	4,576
Total loan balance	25,912	24,945
Risk Grades \| Substandard-Nonaccrual
Loans
2023/2022		779
2022/2021		4,055
2021/2020	4,038	955
2020/2019	966	116
Prior Periods	1,694	771
Revolving Loans Amortized Cost Basis		142
Total loan balance	6,698	6,818
Commercial. \| Commercial
Loans
2024/2023	92,596	101,498
2023/2022	28,107	27,858
2022/2021	19,859	20,122
2021/2020	17,981	15,029
2020/2019	11,351	12,327
Prior Periods	35,581	27,874
Revolving Loans Amortized Cost Basis	275,791	259,070
Total loan balance	481,266	463,778
Commercial. \| Commercial \| Pass
Loans
2024/2023	89,567	99,387
2023/2022	27,960	25,250
2022/2021	18,909	19,732
2021/2020	17,627	14,929
2020/2019	11,351	11,893
Prior Periods	30,452	22,134
Revolving Loans Amortized Cost Basis	275,491	258,461
Total loan balance	471,357	451,786
Commercial. \| Commercial \| Special Mention
Loans
2024/2023	3,029	2,107
2023/2022		1,092
2022/2021	358	41
2021/2020	131
2020/2019		133
Prior Periods	185	1,134
Revolving Loans Amortized Cost Basis	200	467
Total loan balance	3,903	4,974
Commercial. \| Commercial \| Substandard
Loans
2024/2023		4
2023/2022	147	1,516
2022/2021	592
2021/2020		100
2020/2019		185
Prior Periods	4,415	3,835
Revolving Loans Amortized Cost Basis	100	142
Total loan balance	5,254	5,782
Commercial. \| Commercial \| Substandard-Nonaccrual
Loans
2022/2021		349
2021/2020	223
2020/2019		116
Prior Periods	529	771
Total loan balance	752	1,236
Real estate \| CRE - Owner Occupied
Loans
2024/2023	42,069	32,993
2023/2022	31,845	86,938
2022/2021	83,140	113,854
2021/2020	110,701	68,646
2020/2019	70,341	53,985
Prior Periods	254,559	216,535
Revolving Loans Amortized Cost Basis	9,407	10,302
Total loan balance	602,062	583,253
Real estate \| CRE - Owner Occupied \| Pass
Loans
2024/2023	42,069	32,993
2023/2022	31,845	86,688
2022/2021	83,140	110,613
2021/2020	102,419	68,184
2020/2019	66,720	52,885
Prior Periods	253,342	214,729
Revolving Loans Amortized Cost Basis	9,407	10,302
Total loan balance	588,942	576,394
Real estate \| CRE - Owner Occupied \| Special Mention
Loans
2023/2022		250
2022/2021		3,241
2021/2020	8,282	462
2020/2019	447
Prior Periods	1,217	1,802
Total loan balance	9,946	5,755
Real estate \| CRE - Owner Occupied \| Substandard
Loans
2020/2019	3,174	1,100
Prior Periods		4
Total loan balance	3,174	1,104
Real estate \| CRE - Non-Owner Occupied
Loans
2024/2023	97,037	225,505
2023/2022	223,427	243,080
2022/2021	237,016	267,870
2021/2020	261,789	28,315
2020/2019	27,272	100,141
Prior Periods	459,604	388,206
Revolving Loans Amortized Cost Basis	4,433	3,473
Total loan balance	1,310,578	1,256,590
Real estate \| CRE - Non-Owner Occupied \| Pass
Loans
2024/2023	97,037	225,505
2023/2022	223,427	243,080
2022/2021	232,175	267,870
2021/2020	255,074	28,315
2020/2019	27,272	92,648
Prior Periods	446,572	370,552
Revolving Loans Amortized Cost Basis	3,833	3,199
Total loan balance	1,285,390	1,231,169
Real estate \| CRE - Non-Owner Occupied \| Special Mention
Loans
2022/2021	4,841
2021/2020	2,201
2020/2019		7,493
Prior Periods	1,279	10,040
Total loan balance	8,321	17,533
Real estate \| CRE - Non-Owner Occupied \| Substandard
Loans
2021/2020	4,514
Prior Periods	11,753	7,614
Revolving Loans Amortized Cost Basis	600	274
Total loan balance	16,867	7,888
Real estate \| Land & Construction
Loans
2024/2023	26,745	44,434
2023/2022	43,646	52,862
2022/2021	30,987	31,125
2021/2020	19,799	10,228
2020/2019	1,180	1,864
Prior Periods	3,404
Total loan balance	125,761	140,513
Real estate \| Land & Construction \| Pass
Loans
2024/2023	26,745	40,142
2023/2022	43,646	52,862
2022/2021	30,987	27,419
2021/2020	15,984	9,273
2020/2019	214	1,864
Total loan balance	117,576	131,560
Real estate \| Land & Construction \| Special Mention
Loans
2024/2023		2,163
Prior Periods	2,323
Total loan balance	2,323	2,163
Real estate \| Land & Construction \| Substandard
Loans
2024/2023		2,129
Total loan balance		2,129
Real estate \| Land & Construction \| Substandard-Nonaccrual
Loans
2022/2021		3,706
2021/2020	3,815	955
2020/2019	966
Prior Periods	1,081
Total loan balance	5,862	4,661
Real estate \| Home Equity
Loans
Prior Periods	2,182	1,463
Revolving Loans Amortized Cost Basis	121,908	117,662
Total loan balance	124,090	119,125
Real estate \| Home Equity \| Pass
Loans
Prior Periods	2,098	1,463
Revolving Loans Amortized Cost Basis	119,357	111,250
Total loan balance	121,455	112,713
Real estate \| Home Equity \| Special Mention
Loans
Revolving Loans Amortized Cost Basis	2,110	2,110
Total loan balance	2,110	2,110
Real estate \| Home Equity \| Substandard
Loans
Revolving Loans Amortized Cost Basis	441	4,160
Total loan balance	441	4,160
Real estate \| Home Equity \| Substandard-Nonaccrual
Loans
Prior Periods	84
Revolving Loans Amortized Cost Basis		142
Total loan balance	84	142
Real estate \| Multi-Family
Loans
2024/2023	13,397	47,089
2023/2022	46,528	41,112
2022/2021	39,833	55,557
2021/2020	54,067	5,394
2020/2019	5,286	42,129
Prior Periods	113,429	78,098
Revolving Loans Amortized Cost Basis	563	355
Total loan balance	273,103	269,734
Real estate \| Multi-Family \| Pass
Loans
2024/2023	13,397	47,089
2023/2022	46,528	41,112
2022/2021	39,833	55,557
2021/2020	54,067	5,394
2020/2019	5,286	42,129
Prior Periods	113,429	75,890
Revolving Loans Amortized Cost Basis	563	355
Total loan balance	273,103	267,526
Real estate \| Multi-Family \| Substandard
Loans
Prior Periods		2,208
Total loan balance		2,208
Real estate \| Residential Mortgage
Loans
2024/2023	3,937	1,684
2023/2022	1,665	189,169
2022/2021	184,031	268,617
2021/2020	255,131	1,037
2020/2019	1,014	6,861
Prior Periods	33,746	29,593
Total loan balance	479,524	496,961
Real estate \| Residential Mortgage \| Pass
Loans
2024/2023	3,937	1,684
2023/2022	1,665	187,417
2022/2021	184,031	268,617
2021/2020	255,131	1,037
2020/2019	1,014	6,861
Prior Periods	33,570	28,892
Total loan balance	479,348	494,508
Real estate \| Residential Mortgage \| Substandard
Loans
2023/2022		973
Prior Periods	176	701
Total loan balance	176	1,674
Real estate \| Residential Mortgage \| Substandard-Nonaccrual
Loans
2023/2022		779
Total loan balance		779
Real estate \| Consumer and Other
Loans
Total loan balance		20,919
Consumer \| Consumer and Other
Loans
2024/2023	175	2,332
2023/2022	674	1,376
2022/2021	1,339	65
2021/2020	48
Prior Periods	2,072	2,185
Revolving Loans Amortized Cost Basis	9,871	14,961
Total loan balance	14,179	20,919
Consumer \| Consumer and Other \| Pass
Loans
2024/2023	175	2,332
2023/2022	674	1,376
2022/2021	1,339	3
2021/2020	48
Prior Periods	1,998	2,089
Revolving Loans Amortized Cost Basis	9,871	14,961
Total loan balance	14,105	20,761
Consumer \| Consumer and Other \| Special Mention
Loans
2022/2021		62
Prior Periods	74	96
Total loan balance	$ 74	$ 158

Loans and Allowance for Credi_9

Loans and Allowance for Credit Losses on Loans - Gross charge-offs by year of origination and revolving loans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Current period gross charge-offs
2024/2023		$ 1		$ 1
2023/2022		45	$ 416	49
2020/2019		229		278
Prior Periods	$ 25	172	477	277
Revolving Loans	449		449	246
Total	474	447	1,342	851
Commercial. \| Commercial
Current period gross charge-offs
2024/2023		1		1
2023/2022		45	416	49
2020/2019		229		278
Prior Periods	25	172	477	277
Revolving Loans	149		149
Total	174	$ 447	1,042	605
Real estate \| Home Equity
Current period gross charge-offs
Revolving Loans				246
Total				$ 246
Consumer \| Consumer and Other
Current period gross charge-offs
Revolving Loans	300		300
Total	$ 300		$ 300

Loans and Allowance for Cred_10

Loans and Allowance for Credit Losses on Loans - Amortized Cost Basis of Collateral-dependent Loans (Details) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Business Assets
Financing Receivable, Recorded Investment, Past Due [Line Items]
Collateral dependent loans	$ 132,000	$ 290,000

Loans and Allowance for Cred_11

Loans and Allowance for Credit Losses on Loans -Loan modification (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2024 USD ($) loan	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($) loan	Sep. 30, 2023 USD ($)
Financing Receivable, Modifications [Line Items]
Number of loans for which multiple concessions are provided \| loan	1		1
Payment delay	$ 0
Payment default for loans modified	$ 0	$ 0	$ 0	$ 0
Commercial. \| Commercial \| Payment Delay
Financing Receivable, Modifications [Line Items]
Payment delay		$ 25,000		$ 79,000
Class of financing receivables (as percentage)		0.01%
Commercial. \| Commercial \| Term Extension
Financing Receivable, Modifications [Line Items]
Payment delay			$ 15,000
Class of financing receivables (as percentage)			0%
Weighted average term extension			12 months	14 months
Commercial. \| Commercial \| Extension and interest rate reduction
Financing Receivable, Modifications [Line Items]
Payment delay				$ 2,000
Class of financing receivables (as percentage)				0.02%
Commercial. \| Commercial \| Principal Forgiveness
Financing Receivable, Modifications [Line Items]
Payment delay				$ 3,000
Commercial. \| Commercial \| Contractual Interest Rate Reduction
Financing Receivable, Modifications [Line Items]
Principal forgiveness				0.25%

Goodwill and Other Intangible_3

Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($)	9 Months Ended
	Sep. 30, 2024	Dec. 31, 2023	Sep. 30, 2023
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	Sep. 30, 2024	Dec. 31, 2023
Other Intangible Assets
Gross Carrying Amount	$ 27,033	$ 27,033
Accumulated Amortization	(20,067)	(18,406)
Total	6,966	8,627
Core deposit intangibles
Other Intangible Assets
Gross Carrying Amount	25,023	25,023
Accumulated Amortization	(18,164)	(16,646)
Total	6,859	8,377
Customer relationship and brokered relationship intangibles
Other Intangible Assets
Gross Carrying Amount	1,900	1,900
Accumulated Amortization	(1,883)	(1,741)
Total	17	159
Below market leases
Other Intangible Assets
Gross Carrying Amount	110	110
Accumulated Amortization	(20)	(19)
Total	$ 90	$ 91

Goodwill and Other Intangible_5

Goodwill and Other Intangible Assets - Estimated Amortization Expense (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Estimated Amortization Expense
2024 remaining	$ 526
2025	1,813
2026	1,530
2027	1,456
2028	1,017
2029	624
Total	6,966	$ 8,627
Core Deposit Intangibles
Estimated Amortization Expense
2024 remaining	505
2025	1,795
2026	1,512
2027	1,438
2028	999
2029	610
Total	6,859	8,377
Customer & Brokered Relationship Intangible
Estimated Amortization Expense
2024 remaining	17
Total	17	159
Below/(Above) Market Lease
Estimated Amortization Expense
2024 remaining	4
2025	18
2026	18
2027	18
2028	18
2029	14
Total	$ 90	$ 91

Goodwill and Other Intangible_6

Goodwill and Other Intangible Assets - Impairment of Intangible Assets (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Impairment of Intangible Assets
Impairment of intangible assets	$ 0	$ 0

Income Taxes - Net Deferred Tax

Income Taxes - Net Deferred Tax Assets (Details) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Net deferred tax assets
Net deferred tax assets	$ 26,390,000	$ 29,765,000
Valuation allowance for deferred tax assets	$ 0	$ 0

Income Taxes - Carry Amounts of

Income Taxes - Carry Amounts of the Low Income Housing Investments (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Income Taxes
Low income housing investments	$ 2,349	$ 2,794
Future commitments	$ 491	$ 494

Income Taxes - Future Commitmen

Income Taxes - Future Commitments of the Low Income Housing Investments (Details) - Low income housing investments	Sep. 30, 2024 USD ($)
Future Commitments
Remaining period of 2024	$ 11,000
2025 through 2027	$ 480,000

Income Taxes - Components of Lo

Income Taxes - Components of Low Income Housing Investment (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Taxes
Low income housing tax credits	$ 141,000	$ 180,000	$ 422,000	$ 540,000
Low income housing investment expense	$ 148,000	$ 186,000	$ 445,000	$ 557,000

Benefit Plans - Defined Benefit

Benefit Plans - Defined Benefit Plans - Nonqualified Defined Benefit Pension Plan (Details)	Sep. 30, 2024 USD ($)
Supplemental Retirement Plan
Supplemental Retirement Plan
Plan assets associated with the plan	$ 0

Benefit Plans - Defined Benef_2

Benefit Plans - Defined Benefit Plans - Change in Projected Benefit Obligation (Details) - Split-Dollar Life Insurance Benefit Plan - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Change in projected benefit obligation:
Projected benefit obligation at beginning of year			$ 6,951	$ 7,060	$ 7,060
Interest cost	$ 87	$ 92	259	$ 274	365
Actuarial loss					(474)
Projected benefit obligation at end of period	$ 7,210		$ 7,210		$ 6,951

Benefit Plans - Defined Benef_3

Benefit Plans - Defined Benefit Plans - Amounts Recognized in Accumulated Other Comprehensive Loss (Details) - Split-Dollar Life Insurance Benefit Plan - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Amounts Recognized in Accumulated Other Comprehensive Loss
Net actuarial loss	$ (2,332)	$ (2,108)
Prior transition obligation	(633)	(701)
Accumulated other comprehensive income (loss)	$ (2,965)	$ (2,809)

Benefit Plans - Defined Benef_4

Benefit Plans - Defined Benefit Plans - Components of Pension Cost (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Supplemental Retirement Plan
Components of net periodic benefit cost:
Service cost	$ 52	$ 48	$ 154	$ 144
Interest cost	318	324	954	972
Amortization of net actuarial loss	26	13	78	39
Net periodic benefit cost	396	385	1,186	1,155
Amount recognized in other comprehensive income (loss)	18	9	54	27
Split-Dollar Life Insurance Benefit Plan
Components of net periodic benefit cost:
Amortization of prior transition obligation and actuarial losses	(53)	(48)	(157)	(143)
Interest cost	87	92	259	274	$ 365
Net periodic benefit cost	34	44	102	131
Amount recognized in other comprehensive income (loss)	$ (53)	$ (48)	$ (157)	$ (143)

Fair Value - Financial Assets a

Fair Value - Financial Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	$ 237,612	$ 442,636
U.S. Treasury
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	184,162	382,369
Agency mortgage-backed securities
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	53,450	60,267
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
Recurring basis
Financial Assets and Liabilities Measured on a Recurring Basis
I/O strip receivables	95	117
Transfers between Level 1 and Level 2:
Transfers between Level 1 and Level 2	0	0
Recurring basis \| U.S. Treasury
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	184,162	382,369
Recurring basis \| Agency mortgage-backed securities
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	53,450
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	184,162	382,369
Recurring basis \| Significant Other Observable Inputs (Level 2)
Financial Assets and Liabilities Measured on a Recurring Basis
I/O strip receivables	95	$ 117
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	$ 53,450

Fair Value - Impaired Loans Hel

Fair Value - Impaired Loans Held-for-investment - Additional Disclosures (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Carrying Amounts
Impaired Loans Held-for-investment
Foreclosed assets	$ 0	$ 0

Fair Value - Carrying Amounts a

Fair Value - Carrying Amounts and Estimated Fair Values of Financial Instruments (Details) - USD ($)	Sep. 30, 2024	Jun. 30, 2024	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022
Assets
Securities available-for-sale	$ 237,612,000		$ 442,636,000
Securities held-to-maturity	531,533,000		564,127,000
FHLB stock, FRB stock, and other investments	32,553,000		32,540,000
Liabilities
Subordinated debt	39,615,000		39,502,000
Allowance for credit losses on loans	47,819,000	$ 47,954,000	47,958,000	$ 47,702,000	$ 47,803,000	$ 47,512,000
Carrying Amounts
Assets
Cash and cash equivalents	956,310,000		408,129,000
Securities available-for-sale	237,612,000		442,636,000
Securities held-to-maturity	604,193,000		650,565,000
Loans (including loans held-for-sale)	3,411,885,000		3,352,583,000
FHLB stock, FRB stock, and other investments	32,553,000		32,540,000
Accrued interest receivable	15,220,000		14,959,000
I/O strips receivables	95,000		117,000
Liabilities
Time deposits	523,396,000		469,472,000
Other deposits	4,206,137,000		3,908,986,000
Subordinated debt	39,615,000		39,502,000
Accrued interest payable	7,037,000		4,688,000
Balance
Assets
Cash and cash equivalents	956,310,000		408,129,000
Securities available-for-sale	237,612,000		442,636,000
Securities held-to-maturity	531,533,000		564,127,000
Loans (including loans held-for-sale)	3,248,530,000		3,174,717,000
Accrued interest receivable	15,220,000		14,959,000
I/O strips receivables	95,000		117,000
Liabilities
Time deposits	525,656,000		471,693,000
Other deposits	4,206,137,000		3,908,986,000
Subordinated debt	33,215,000		31,902,000
Accrued interest payable	7,037,000		4,698,000
Balance \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets
Cash and cash equivalents	956,310,000		408,129,000
Securities available-for-sale	184,162,000		382,369,000
Accrued interest receivable	604,000		1,255,000
Balance \| Significant Other Observable Inputs (Level 2)
Assets
Securities available-for-sale	53,450,000		60,267,000
Securities held-to-maturity	531,533,000		564,127,000
Loans (including loans held-for-sale)	1,649,000		2,205,000
Accrued interest receivable	3,020,000		1,764,000
I/O strips receivables	95,000		117,000
Liabilities
Time deposits	525,656,000		471,693,000
Other deposits	4,206,137,000		3,908,986,000
Subordinated debt	33,215,000		31,902,000
Accrued interest payable	7,037,000		4,698,000
Balance \| Significant Unobservable Inputs (Level 3)
Assets
Loans (including loans held-for-sale)	3,246,881,000		3,172,512,000
Accrued interest receivable	$ 11,596,000		$ 11,940,000

Equity Plan - General Disclosur

Equity Plan - General Disclosures (Details) - shares	9 Months Ended
Equity Plan - General Disclosures (Details) - shares	Sep. 30, 2024	May 25, 2023	May 21, 2020	May 20, 2020
Equity Plan
Share-Based Payment Arrangement, Grantee Status [Extensible Enumeration]	us-gaap:ShareBasedPaymentArrangementEmployeeMember
2013 Plan
Equity Plan
Number of shares authorized for equity plan			5,000,000	3,000,000
2023 Plan
Equity Plan
Number of shares reserved for future issuance		600,000
Number of shares available for future grants	941,181
Employee Stock Option [Member]
Equity Plan
Vesting period	4 years
Expiration term	10 years
Restricted stock
Equity Plan
Stocks granted other than stock (or unit) option plans (in shares)	57,123
RSU
Equity Plan
Stocks granted other than stock (or unit) option plans (in shares)	273,841
RSU \| 2023 Plan
Equity Plan
Vesting period	3 years
RSU \| Long Term Incentive Equity Program
Equity Plan
Percentage of awarded value in relevant award type	50%
PRSU
Equity Plan
Stocks granted other than stock (or unit) option plans (in shares)	149,923
PRSU \| Long Term Incentive Equity Program
Equity Plan
Performance period	3 years
Stocks granted other than stock (or unit) option plans (in shares)	149,923
Percentage of awarded value in relevant award type	50%
Duration to cliff vesting	3 years
Nonqualified stock options
Equity Plan
Stock options granted (in shares)	57,213
Board of Directors \| Restricted stock
Equity Plan
Vesting period	1 year

Equity Plan - Stock Option Acti

Equity Plan - Stock Option Activity (Details) - Employee Stock Option [Member] - USD ($)	9 Months Ended
	Sep. 30, 2024
Number of Shares
Outstanding at the beginning of the period (in shares)	2,637,356
Exercised (in shares)	(88,764)
Forfeited or expired (in shares)	(222,399)
Outstanding at the end of the period (in shares)	2,326,193
Vested or expected to vest (in shares)	2,186,621
Exercisable at the end of the period (in shares)	1,898,485
Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share)	$ 10.40
Exercised (in dollars per share)	5.39
Forfeited or expired (in dollars per share)	10.58
Outstanding at the end of the period (in dollars per share)	$ 10.58
Additional Information
Weighted Average Remaining Contractual Life - Outstanding at the end of the period (in years)	5 years 25 days
Weighted Average Remaining Contractual Life - Vested or expected to vest (in years)	5 years 25 days
Weighted Average Remaining Contractual Life - Exercisable at the end of the period (in years)	4 years 4 months 20 days
Aggregate Intrinsic Value - Outstanding at the end of the period (in dollars)	$ 1,867,043
Aggregate Intrinsic Value - Vested or expected to vest (in dollars)	1,755,020
Aggregate Intrinsic Value - Exercisable at the end of the period (in dollars)	$ 1,328,659

Equity Plan - Information Relat

Equity Plan - Information Related to the Equity Plans for each of the Last Three Years (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Information Related to the Equity Plans
Cash received from option exercise	$ 478	$ 997
Employee Stock Option [Member]
Information Related to the Equity Plans
Intrinsic value of options exercised	321,882	620,013
Cash received from option exercise	478,358	996,453
Tax (expense) benefit realized from option exercises	$ (17,785)	$ (5,902)
Weighted average fair value of options granted (in dollars per share)		$ 1.32

Equity Plan - Unrecognized Comp

Equity Plan - Unrecognized Compensation Cost -Nonvested Stock Options (Details)	9 Months Ended
	Sep. 30, 2024 USD ($)
Employee Stock Option [Member]
Unrecognized Compensation Cost
Total unrecognized compensation cost related to nonvested stock options granted	$ 724,000
Expected weighted-average period for recognition of compensation costs related to nonvested stock options	1 year 11 months 8 days
Restricted stock
Unrecognized Compensation Cost
Total unrecognized compensation cost related to nonvested stock options granted	$ 482,000
Expected weighted-average period for recognition of compensation costs related to nonvested stock options	8 months 23 days
Restricted Stock Units (RSUs)
Unrecognized Compensation Cost
Total unrecognized compensation cost related to nonvested stock options granted	$ 2,136,000
Expected weighted-average period for recognition of compensation costs related to nonvested stock options	2 years 3 months 25 days
PRSU
Unrecognized Compensation Cost
Total unrecognized compensation cost related to nonvested stock options granted	$ 1,307,000
Expected weighted-average period for recognition of compensation costs related to nonvested stock options	2 years 2 months 12 days

Equity Plan - Restricted Stock

Equity Plan - Restricted Stock Activity (Details)	9 Months Ended
Equity Plan - Restricted Stock Activity (Details)	Sep. 30, 2024 $ / shares shares
Nonqualified stock options
Number of Shares
Stock options granted (in shares)	57,213
Restricted stock
Number of Shares
Nonvested shares at the beginning of the period (in shares)	185,413
Stocks granted other than stock (or unit) option plans (in shares)	57,123
Vested (in shares)	(123,260)
Forfeited or expired (in shares)	(31,215)
Nonvested shares at the end of the period (in shares)	88,061
Weighted Average Grant Date Fair Value
Nonvested shares at the beginning of the period (in dollars per share) \| $ / shares	$ 10.87
Granted (in dollars per share) \| $ / shares	8.49
Vested (in dollars per share) \| $ / shares	9.12
Forfeited or expired (in dollars per share) \| $ / shares	11.43
Nonvested shares at the end of the period (in dollars per share) \| $ / shares	$ 9.45
Restricted Stock Units (RSUs)
Number of Shares
Nonvested shares at the beginning of the period (in shares)	119,362
Stocks granted other than stock (or unit) option plans (in shares)	273,841
Vested (in shares)	(35,837)
Forfeited or expired (in shares)	(40,589)
Nonvested shares at the end of the period (in shares)	316,777
Weighted Average Grant Date Fair Value
Nonvested shares at the beginning of the period (in dollars per share) \| $ / shares	$ 7.41
Granted (in dollars per share) \| $ / shares	8.47
Vested (in dollars per share) \| $ / shares	7.46
Forfeited or expired (in dollars per share) \| $ / shares	7.84
Nonvested shares at the end of the period (in dollars per share) \| $ / shares	$ 8.26
PRSU
Number of Shares
Nonvested shares at the beginning of the period (in shares)	119,358
Stocks granted other than stock (or unit) option plans (in shares)	149,923
Forfeited or expired (in shares)	(39,862)
Nonvested shares at the end of the period (in shares)	229,419
Weighted Average Grant Date Fair Value
Nonvested shares at the beginning of the period (in dollars per share) \| $ / shares	$ 7.41
Granted (in dollars per share) \| $ / shares	8.49
Forfeited or expired (in dollars per share) \| $ / shares	7.75
Nonvested shares at the end of the period (in dollars per share) \| $ / shares	$ 8.06

Borrowing Arrangements - Collat

Borrowing Arrangements - Collateral value of loans and securities pledged (Details) - Line of credit - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Borrowing Arrangements
Collateral value	$ 2,960,186	$ 3,259,013
Total Available	2,277,460	2,446,504
Remaining Available	2,277,460	2,446,504
FHLB collateralized borrowing capacity
Borrowing Arrangements
Collateral value	1,204,712	1,600,371
Total Available	765,134	1,100,931
Remaining Available	765,134	1,100,931
FRB discount window collateralized line of credit
Borrowing Arrangements
Collateral value	1,755,474	1,658,642
Total Available	1,397,326	1,235,573
Remaining Available	1,397,326	1,235,573
Federal funds purchase arrangements
Borrowing Arrangements
Total Available	90,000	90,000
Remaining Available	90,000	90,000
Holding company line of credit
Borrowing Arrangements
Total Available	25,000	20,000
Remaining Available	$ 25,000	$ 20,000

Borrowing Arrangements - Securi

Borrowing Arrangements - Securities Sold under Repurchase Agreements (Details) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Borrowing Arrangements
Amount of securities sold under agreements	$ 0	$ 0

Borrowing Arrangements - Subord

Borrowing Arrangements - Subordinated Debt (Details) - USD ($)	Sep. 30, 2024	Dec. 31, 2023	May 11, 2022
Subordinated Debt
Subordinated debt, net of issuance costs	$ 39,615,000	$ 39,502,000
Sub Debt Due 2032
Subordinated Debt
Principal amount			$ 40,000,000
Fixed interest rate (as a percent)			5%
Debt Issuance Costs	385,000
Subordinated debt, net of issuance costs	$ 39,615,000
Sub Debt Due 2027
Subordinated Debt
Principal amount			$ 40,000,000
Fixed interest rate (as a percent)			5.25%

Capital Requirements - Tabular

Capital Requirements - Tabular Disclosure (Details) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2024 USD ($)	Dec. 31, 2023 USD ($)
Total Capital (to risk-weighted assets)
Actual, Amount	$ 605,396	$ 594,371
Required For Capital Adequacy Purposes, Amount	$ 406,919	$ 403,060
Actual, Ratio (as a percent)	0.156	0.155
Required For Capital Adequacy Purposes, Ratio (as a percent)	0.105	0.105
Tier 1 Capital (to risk-weighted assets)
Actual, Amount	$ 520,133	$ 511,799
Required For Capital Adequacy Purposes, Amount	$ 329,411	$ 326,287
Actual, Ratio (as a percent)	0.134	0.133
Required For Capital Adequacy Purposes, Ratio (as a percent)	0.085	0.085
Common Equity Tier 1 Capital (to risk-weighted assets)
Actual, Amount	$ 520,133	$ 511,799
Required For Capital Adequacy Purposes, Amount	$ 271,279	$ 268,707
Actual, Ratio (as a percent)	0.134%	0.133%
Required For Capital Adequacy Purposes, Ratio (as a percent)	0.07%	0.07%
Tier 1 Capital (to average assets)
Actual, Amount	$ 520,133	$ 511,799
Required For Capital Adequacy Purposes, Amount	$ 207,279	$ 204,024
Actual, Ratio (as a percent)	0.100	0.100
Required For Capital Adequacy Purposes, Ratio (as a percent)	0.040	0.040
Capital conservation buffer (as a percent)	0.025%	0.025%
HBC
Total Capital (to risk-weighted assets)
Actual, Amount	$ 585,034	$ 572,907
To Be Well Capitalized Under Regulatory Requirements, Amount	387,242	383,542
Required For Capital Adequacy Purposes, Amount	$ 406,604	$ 402,719
Actual, Ratio (as a percent)	0.151	0.149
To Be Well Capitalized Under Regulatory Requirements, Ratio (as a percent)	0.100	0.100
Required For Capital Adequacy Purposes, Ratio (as a percent)	0.105	0.105
Tier 1 Capital (to risk-weighted assets)
Actual, Amount	$ 539,386	$ 529,836
To Be Well Capitalized Under Regulatory Requirements, Amount	309,793	306,834
Required For Capital Adequacy Purposes, Amount	$ 329,156	$ 326,011
Actual, Ratio (as a percent)	0.139	0.138
To Be Well Capitalized Under Regulatory Requirements, Ratio (as a percent)	0.080	0.080
Required For Capital Adequacy Purposes, Ratio (as a percent)	0.085	0.085
Common Equity Tier 1 Capital (to risk-weighted assets)
Actual, Amount	$ 539,386	$ 529,836
To Be Well Capitalized Under Regulatory Requirements, Amount	251,707	249,302
Required For Capital Adequacy Purposes, Amount	$ 271,069	$ 268,479
Actual, Ratio (as a percent)	0.139%	0.138%
To Be Well Capitalized Under Regulatory Requirements, Ratio (as a percent)	0.065%	0.065%
Required For Capital Adequacy Purposes, Ratio (as a percent)	0.07%	0.07%
Tier 1 Capital (to average assets)
Actual, Amount	$ 539,386	$ 529,836
To Be Well Capitalized Under Regulatory Requirements, Amount	258,949	254,869
Required For Capital Adequacy Purposes, Amount	$ 207,159	$ 203,895
Actual, Ratio (as a percent)	0.104	0.104
To Be Well Capitalized Under Regulatory Requirements, Ratio (as a percent)	0.050	0.050
Required For Capital Adequacy Purposes, Ratio (as a percent)	0.040	0.040
Capital conservation buffer (as a percent)	0.025%	0.025%

Capital Requirements - Dividend

Capital Requirements - Dividends to Parent (Details) - USD ($)	3 Months Ended			9 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2024	Dec. 31, 2023
Cash dividend
Subordinated debt	$ 39,615,000			$ 39,615,000	$ 39,502,000
HBC
Cash dividend
Cash dividend available	71,477,000			71,477,000
Dividends paid to parent company	$ 8,000,000	$ 8,000,000	$ 8,000,000	$ 24,000,000

Commitments and Loss Continge_3

Commitments and Loss Contingencies - Financial Instruments with Off-Balance Sheet Risk (Details)	9 Months Ended	12 Months Ended
	Sep. 30, 2024 USD ($) item	Dec. 31, 2023 USD ($)
Commitments and Contingencies
Number of pending legal proceedings \| item	3
Commitments to extend credit, fixed rate	$ 128,649,000	$ 100,449,000
Commitments to extend credit, variable rate	989,126,000	1,048,607,000
Commitment to extend credit, total	$ 1,117,775,000	$ 1,149,056,000
Percentage of unused commitments to outstanding gross loans	33%	34%
Increase (decrease) to the allowance for credit losses on loans	$ (111,000)
Off-balance sheet, credit loss liability increase due to offsetting increase in loss factors in CECL model	656,000	$ 767,000
Unused lines of credit and commitments to make loans
Commitments and Contingencies
Commitments to extend credit, fixed rate	122,471,000	96,166,000
Commitments to extend credit, variable rate	972,291,000	1,041,608,000
Commitment to extend credit, total	1,094,762,000	1,137,774,000
Standby letters of credit
Commitments and Contingencies
Commitments to extend credit, fixed rate	6,178,000	4,283,000
Commitments to extend credit, variable rate	16,835,000	6,999,000
Commitment to extend credit, total	$ 23,013,000	$ 11,282,000

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Revenue Recognition (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Disaggregation of Revenue [Line Items]
Noninterest Income In-scope of Topic 606	$ 908	$ 859	$ 2,676	$ 3,503
Noninterest Income Out-of-scope of Topic 606	1,332	1,357	3,887	3,553
Total noninterest income	2,240	2,216	6,563	7,056
Service charges and fees on deposit accounts
Disaggregation of Revenue [Line Items]
Noninterest Income In-scope of Topic 606	$ 908	$ 859	$ 2,676	$ 3,503

Noninterest Expense (Details)

Noninterest Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Noninterest Expense (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Noninterest Expense
Salaries and employee benefits	$ 15,673	$ 14,147	$ 46,976	$ 42,943
Occupancy and equipment	2,599	2,301	7,731	7,123
Insurance expense	1,715	1,595	4,988	4,627
Professional fees	1,306	717	3,705	3,265
Client services	809	682	2,497	1,633
Data processing	800	906	2,635	2,593
Software subscriptions	743	682	2,034	1,903
Other	3,910	4,141	12,713	11,476
Total noninterest expense	$ 27,555	$ 25,171	$ 83,279	$ 75,563

Leases (Details)

Leases (Details) - USD ($)	3 Months Ended		9 Months Ended
Leases (Details) - USD ($)	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Leases
Lessee, Operating Lease, Option to renew			true
Operating Lease Cost (Cost resulting from lease payments)	$ 1,727,000	$ 1,677,000	$ 5,125,000	$ 5,087,000
Operating Lease - Operating Cash Flows (Fixed Payments)	1,764,000	1,678,000	5,165,000	5,026,000
Operating Lease - ROU assets	$ 31,912,000	$ 31,979,000	$ 31,912,000	$ 31,979,000
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Interest Receivable and Other Assets	Interest Receivable and Other Assets	Interest Receivable and Other Assets	Interest Receivable and Other Assets
Operating Lease - Liabilities	$ 31,912,000	$ 31,979,000	$ 31,912,000	$ 31,979,000
Operating Lease, Liability, Statement of Financial Position [Extensible List]	Accrued Interest Payable and Other Liabilities	Accrued Interest Payable and Other Liabilities	Accrued Interest Payable and Other Liabilities	Accrued Interest Payable and Other Liabilities
Weighted Average Lease Term - Operating Leases	5 years 3 months 25 days	6 years 1 month 6 days	5 years 3 months 25 days	6 years 1 month 6 days
Weighted Average Discount Rate - Operating Leases	5.56%	4.86%	5.56%	4.86%

Leases - Maturity Analysis (Det

Leases - Maturity Analysis (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023
Operating Lease Payments Due
2024 remaining	$ 1,778
2025	7,145
2026	6,603
2027	6,380
2028	5,779
Thereafter	9,457
Total undiscounted cash flows	37,142
Discount on cash flows	(5,230)
Total lease liability	$ 31,912	$ 31,979

Business Segment Information -

Business Segment Information - Business Segments (Details)	9 Months Ended
Business Segment Information - Business Segments (Details)	Sep. 30, 2024 segment
Business Segment Information
Number of business segments	2
Focus
Business Segment Information
Number of business segments	2

Business Segment Information _2

Business Segment Information - Operating Statements (Details) - USD ($)	3 Months Ended						9 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Operating Income
Interest income	$ 61,438,000			$ 60,791,000			$ 178,066,000	$ 175,406,000
Total interest expense	21,523,000			15,419,000			58,603,000	34,483,000
Net interest income	39,915,000			45,372,000			119,463,000	140,923,000
Provision for (recapture of) credit losses on loans	153,000			168,000			808,000	460,000
Net interest income after provision	39,762,000			45,204,000			118,655,000	140,463,000
Noninterest income	2,240,000			2,216,000			6,563,000	7,056,000
Noninterest expense	27,555,000			25,171,000			83,279,000	75,563,000
Income before income taxes	14,447,000			22,249,000			41,939,000	71,956,000
Income tax expense	3,940,000			6,454,000			12,032,000	20,841,000
Net income	10,507,000	$ 9,234,000	$ 10,166,000	15,795,000	$ 16,403,000	$ 18,917,000	29,907,000	51,115,000
Total assets	5,551,596,000			5,403,307,000			5,551,596,000	5,403,307,000	$ 5,194,095,000
Loans, net of deferred fees	3,410,236,000			3,285,461,000			3,410,236,000	3,285,461,000	3,350,378,000
Goodwill	167,631,000			167,631,000			167,631,000	167,631,000	167,631,000
Banking
Operating Income
Interest income	59,294,000			58,016,000			170,170,000	164,783,000
Intersegment interest allocations	470,000			397,000			1,346,000	1,626,000
Total interest expense	21,523,000			15,419,000			58,603,000	34,483,000
Net interest income	38,241,000			42,994,000			112,913,000	131,926,000
Provision for (recapture of) credit losses on loans	186,000			254,000			556,000	807,000
Net interest income after provision	38,055,000			42,740,000			112,357,000	131,119,000
Noninterest income	1,982,000			2,044,000			6,030,000	6,743,000
Noninterest expense	25,808,000			23,588,000			78,438,000	70,645,000
Intersegment expense allocations	121,000			109,000			381,000	435,000
Income before income taxes	14,350,000			21,305,000			40,330,000	67,652,000
Income tax expense	3,911,000			6,175,000			11,556,000	19,572,000
Net income	10,439,000			15,130,000			28,774,000	48,080,000
Total assets	5,466,494,000			5,314,922,000			5,466,494,000	5,314,922,000
Loans, net of deferred fees	3,353,037,000			3,233,379,000			3,353,037,000	3,233,379,000
Goodwill	154,587,000			154,587,000			154,587,000	154,587,000	154,587,000
Factoring
Operating Income
Interest income	2,144,000			2,775,000			7,896,000	10,623,000
Intersegment interest allocations	(470,000)			(397,000)			(1,346,000)	(1,626,000)
Net interest income	1,674,000			2,378,000			6,550,000	8,997,000
Provision for (recapture of) credit losses on loans	(33,000)			(86,000)			252,000	(347,000)
Net interest income after provision	1,707,000			2,464,000			6,298,000	9,344,000
Noninterest income	258,000			172,000			533,000	313,000
Noninterest expense	1,747,000			1,583,000			4,841,000	4,918,000
Intersegment expense allocations	(121,000)			(109,000)			(381,000)	(435,000)
Income before income taxes	97,000			944,000			1,609,000	4,304,000
Income tax expense	29,000			279,000			476,000	1,269,000
Net income	68,000			665,000			1,133,000	3,035,000
Total assets	85,102,000			88,385,000			85,102,000	88,385,000
Loans, net of deferred fees	57,199,000			52,082,000			57,199,000	52,082,000
Goodwill	$ 13,044,000			$ 13,044,000			$ 13,044,000	$ 13,044,000	$ 13,044,000

Subsequent Events (Details)

Subsequent Events (Details) - $ / shares	1 Months Ended	3 Months Ended
Subsequent Events (Details) - $ / shares	Oct. 24, 2024	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023
Subsequent Events
Quarterly cash dividends declared to holders of common stock		$ 0.13	$ 0.13	$ 0.13	$ 0.13	$ 0.13	$ 0.13
Subsequent Event \| Q4 Dividends
Subsequent Events
Declaration date	Oct. 24, 2024
Quarterly cash dividends declared to holders of common stock	$ 0.13
Payable date	Nov. 21, 2024
Record date	Nov. 07, 2024