0001104659-22-040965 | 10-K | XBRL Viewer

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Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Assets
Cash and due from banks	$ 411,676	$ 998,497
Interest-bearing time deposits with other banks	1,183	7,021
Investment securities	313,879	304,958
Loans held for sale	64,987	22,284
Loans, net of allowance for loan losses of $56,548 and $72,387 at December 31, 2021 and 2020, respectively	1,956,266	2,434,356
Accrued interest receivable	7,696	10,990
Mortgage servicing rights, net	2,722	5,688
Leasehold improvements and equipment, net	7,421	8,512
Operating lease right-of-use assets	18,184	19,232
Federal Home Loan Bank stock, at cost	22,950	22,950
Cash surrender value of bank-owned life insurance	33,033	32,495
Deferred tax asset, net	21,426	24,326
Other assets	15,407	22,736
Total assets	2,876,830	3,914,045
Liabilities:
Noninterest-bearing deposits	63,760	64,509
Interest-bearing deposits	2,197,975	3,066,004
Total deposits	2,261,735	3,130,513
Federal Home Loan Bank borrowings	150,000	318,000
Subordinated notes, net	65,343	65,341
Operating lease liabilities	19,400	20,497
Accrued expenses and other liabilities	36,725	60,103
Total liabilities	2,533,203	3,594,454
Commitments and contingencies (Note 19)
Shareholders' equity:
Preferred stock, authorized 10,000,000 shares; no shares issued and outstanding
Common stock, no par value, authorized 500,000,000 shares; issued and outstanding 50,460,932 shares and 49,981,861 shares at December 31, 2021 and 2020, respectively	82,157	80,807
Additional paid-in capital	14,124	13,544
Retained earnings	248,243	224,853
Accumulated other comprehensive income (loss)	(897)	387
Total shareholders' equity	343,627	319,591
Total liabilities and shareholders' equity	$ 2,876,830	$ 3,914,045

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Condensed Consolidated Balance Sheets
Allowance for loan losses	$ 56,548	$ 72,387
Preferred stock, authorized (in shares)	10,000,000	10,000,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, authorized (in shares)	500,000,000	500,000,000
Common stock, issued (in shares)	50,460,932	49,981,861
Common stock, outstanding (in shares)	50,460,932	49,981,861

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Interest income
Interest and fees on loans	$ 113,822	$ 146,702	$ 168,955
Interest and dividends on investment securities and restricted stock	1,794	3,618	4,976
Other interest	925	1,043	1,438
Total interest income	116,541	151,363	175,369
Interest expense
Interest on deposits	18,116	37,482	45,693
Interest on Federal Home Loan Bank borrowings	3,118	3,403	3,991
Interest on subordinated notes	4,127	4,713	4,701
Total interest expense	25,361	45,598	54,385
Net interest income	91,180	105,765	120,984
Provision (recovery) for loan losses	(8,265)	54,865	(133)
Net interest income after provision (recovery) for loan losses	99,445	50,900	121,117
Non-interest income
Non-interest income	$ 509	$ 426	$ 444
Revenue, Product and Service [Extensible List]	sbt:ServiceChargesAndFeesMember	sbt:ServiceChargesAndFeesMember	sbt:ServiceChargesAndFeesMember
Gain on sale of investment securities		$ 179	$ 6
Gain on sale of mortgage loans held for sale	$ 634	2,050	396
Gain on sale of portfolio loans			5,970
Unrealized gains (losses) on equity securities	(142)	108	114
Gain on sale of branch office	1,417
Net servicing income (loss)	(1,208)	(1,324)	238
Income on cash surrender value of bank-owned life insurance	1,286	1,160	1,275
Other	3,310	1,737	3,004
Total non-interest income	5,806	4,336	11,447
Non-interest expense
Salaries and employee benefits	28,220	30,655	29,503
Occupancy and equipment	9,108	8,788	8,988
Professional fees	24,709	32,646	5,984
FDIC assessments	2,029	1,768	436
Data processing	1,900	1,458	1,233
Net provision (recovery) of mortgage repurchase liability	(1,234)	2,527	7,823
Provision (recovery) for contingent losses, net		(10,000)	25,000
Other	7,486	6,270	8,706
Total non-interest expense	72,218	74,112	87,673
Income (loss) before income taxes	33,033	(18,876)	44,891
Income tax expense (benefit)	9,643	(5,909)	15,643
Net income (loss)	$ 23,390	$ (12,967)	$ 29,248
Income (loss) per share, basic	$ 0.47	$ (0.26)	$ 0.57
Income (loss) per share, diluted	$ 0.47	$ (0.26)	$ 0.57
Weighted average common shares outstanding:
Basic	50,049,902	49,840,882	51,115,986
Diluted	50,139,310	49,840,882	51,127,879

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Condensed Consolidated Statements of Comprehensive Income (Loss)
Net income (loss)	$ 23,390	$ (12,967)	$ 29,248
Other comprehensive income (loss), net of tax:
Unrealized gains (losses) on investment securities, arising during the year, net of tax effect of $(499), $129 and $56, respectively	(1,284)	320	210
Reclassification adjustment for gains included in net income (loss) of $-, $179, and $6, respectively, included in gain on sale of investment securities, net of tax effect of $-, $50 and $1, respectively		(129)	(5)
Total other comprehensive income (loss)	(1,284)	191	205
Comprehensive income (loss)	$ 22,106	$ (12,776)	$ 29,453

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Condensed Consolidated Statements of Comprehensive Income (Loss)
Unrealized gains on investment securities, arising during the period, tax effect	$ (499)	$ 129	$ 56
Reclassification adjustment for gains included in net income on sale of investment securities, before tax		179	6
Reclassification adjustment for gains included in net income on sale of investment securities, tax effect		$ 50	$ 1

Condensed Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands	Common stock, voting Common stock	Common stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income	Total
Balance at beginning of the period at Dec. 31, 2018	$ 111,238		$ 12,713	$ 211,115	$ (9)	$ 335,057
Balance at beginning of the period (in shares) at Dec. 31, 2018	53,012,283
Increase (Decrease) in Stockholders' Equity
Net income (loss)				29,248		29,248
Repurchases of shares of common stock	$ (30,349)	$ (30,349)				(30,349)
Repurchases of shares of common stock (in shares)	(3,134,806)	(3,134,806)
Stock-based compensation			497			497
Stock-based compensation (in shares)	66,996
Other comprehensive income (loss)					205	205
Dividends distributed ($0.01 per share)				(2,044)		(2,044)
Balance at end of the period at Dec. 31, 2019	$ 80,889		13,210	238,319	196	332,614
Balance at end of the period (in shares) at Dec. 31, 2019	49,944,473
Increase (Decrease) in Stockholders' Equity
Net income (loss)				(12,967)		(12,967)
Repurchases of shares of common stock	$ (82)	$ (82)				(82)
Repurchases of shares of common stock (in shares)	(10,912)	(10,912)
Stock-based compensation			334			334
Stock-based compensation (in shares)	48,300
Other comprehensive income (loss)					191	191
Dividends distributed ($0.01 per share)				(499)		(499)
Balance at end of the period at Dec. 31, 2020	$ 80,807		13,544	224,853	387	319,591
Balance at end of the period (in shares) at Dec. 31, 2020	49,981,861
Increase (Decrease) in Stockholders' Equity
Net income (loss)				23,390		23,390
Issuance of shares of common stock for cash ($4.50 per share)	$ 1,350					1,350
Issuance of shares of common stock for cash ($4.50 per share) (in shares)	300,000
Repurchase of restricted shares to pay employee tax liability			(46)			(46)
Repurchase of restricted shares to pay employee tax liability (in shares)	(8,536)
Stock-based compensation			626			626
Stock-based compensation (in shares)	187,607
Other comprehensive income (loss)					(1,284)	(1,284)
Balance at end of the period at Dec. 31, 2021	$ 82,157		$ 14,124	$ 248,243	$ (897)	$ 343,627
Balance at end of the period (in shares) at Dec. 31, 2021	50,460,932

Condensed Consolidated Statements of Changes in Shareholders' Equity (Parenthetical)	12 Months Ended
	Dec. 31, 2021 $ / shares
Condensed Consolidated Statements of Changes in Shareholders' Equity
Issuance of common stock	$ 4.50

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Cash Flows From Operating Activities
Net income (loss)	$ 23,390	$ (12,967)	$ 29,248
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Provision (recovery) for loan losses	(8,265)	54,865	(133)
Deferred income taxes	3,400	(12,305)	(6,052)
Gain on sale of branch office	(1,417)
Gain on sale of investment securities		(179)	(6)
Unrealized (gains) losses on equity securities	142	(108)	(114)
Amortization (accretion), net, on investment securities	2,380	598	(1,535)
Depreciation and amortization on leasehold improvements and equipment	1,754	1,608	1,621
Originations, net of principal payments, of loans held for sale	(9,995)	(174,700)	(96,418)
Proceeds from sale of mortgage loans held for sale	21,168	174,066	93,648
Gain on sale of mortgage loans held for sale	(634)	(2,050)	(396)
Gain on sale of portfolio loans			(5,970)
Net provision (recovery) of mortgage repurchase liability	(1,234)	2,527	7,823
Provision for contingent losses		2,500	25,000
Recovery of contingent losses		(12,500)
Increase in cash surrender value of bank-owned life insurance,net of premiums	(538)	(578)	(615)
Valuation allowance adjustments and amoritzation of mortgage servicing rights	3,102	4,790	3,831
Stock-based compensation	626	334	497
Other	468	162	613
Change in operating assets and liabilities:
Accrued interest receivable	3,294	2,728	(189)
Other assets	14,718	(8,946)	5,032
Accrued expenses and other liabilities	(21,613)	(11,199)	4,908
Net cash provided by operating activities	30,746	8,646	60,793
Cash Flows From Investing Activities
Maturities of interest-bearing time deposits with other banks	6,336	2,710	1,100
Purchases of interest-bearing time deposits with other banks	(498)	(8,706)	(1,025)
Maturities and principal receipts of investment securities	136,989	144,203	144,694
Sales of investment securities		99,971	2,914
Purchases of investment securities	(150,216)	(396,634)	(149,317)
Net decrease (increase) in loans	603,916	452,631	(162,775)
Purchases of portfolio loans	(179,341)	(69,465)
Proceeds from the sale of portfolio loans			173,382
Cash paid on sale of branch office	(63,545)
Purchase of leasehold improvements and equipment	(1,171)	(922)	(1,330)
Net cash provided by investing activities	352,470	223,788	7,643
Cash Flows From Financing Activities
Net increase (decrease) in deposits	(803,341)	599,825	53,250
Proceeds from advances from Federal Home Loan Bank		100,000	2,476,000
Repayments of advances from Federal Home Loan Bank	(168,000)	(11,000)	(2,540,000)
Proceeds from issuance of shares of common stock	1,350
Repurchase of restricted shares to pay employee tax liability	(46)
Repurchase of shares of common stock		(82)	(30,349)
Dividends paid to shareholders		(499)	(2,044)
Net cash provided by (used in) financing activities	(970,037)	688,244	(43,143)
Net change in cash and due from banks	(586,821)	920,678	25,293
Cash and due from banks at beginning of period	998,497	77,819	52,526
Cash and due from banks at end of period	411,676	998,497	77,819
Cash paid for:
Interest	50,751	48,270	38,196
Income taxes	37	13,906	21,246
Noncash investing and financing activities:
Transfers of residential and commercial real estate loans to loans held for sale	53,628	19,375	169,844
Transfers of residential real estate loans from loans held for sale		399	2,546
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 3,883	$ 4,405	$ 740

Nature of Operations

12 Months Ended

Dec. 31, 2021

Nature of Operations

Nature of Operations

Note 1—Nature of Operations

Sterling Bancorp, Inc. (the “Company”) is a unitary thrift holding company that was incorporated in 1989 and the parent company of its wholly owned subsidiary, Sterling Bank and Trust, F.S.B. (the “Bank”). The Company’s business is conducted through the Bank, which was formed in 1984. The Bank originates residential and commercial real estate loans, construction loans, commercial lines of credit and other consumer loans and provides deposit products, consisting primarily of checking, savings and term certificate accounts. The Bank operates through a network of 28 branches of which 26 branches are located in San Francisco and Los Angeles, California with the remaining branches located in New York, New York and Southfield, Michigan.

The Company is headquartered in Southfield, Michigan, and its operations are in the financial services industry. Management evaluates the performance of the Company’s business based on one reportable segment, community banking.

The Company is subject to regulation, examination and supervision by the Board of Governors of the Federal Reserve System (the “FRB” or “Federal Reserve”). The Bank is a federally chartered stock savings bank that is subject to regulation, supervision and examination by the Office of the Comptroller of the Currency (“OCC”) of the U.S. Department of Treasury and the Federal Deposit Insurance Corporation (“FDIC”) and is a member of the Federal Home Loan Bank (“FHLB”) system.

In July 2021, the Bank completed the sale of its Bellevue, Washington branch office to First Federal Savings & Loan Association of Port Angeles (“First Federal”), a Washington state-chartered bank. The sale included the transfer of customer deposit accounts of $65,437 located at the branch, as well as the transfer of all branch premises and equipment. The transaction resulted in a net cash payment to First Federal of $63,545. The Bank recorded a gain on the sale of $1,417 during the year ended December 31, 2021.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2021

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Note 2—Summary of Significant Accounting Policies

Principles of Consolidation

The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include the results of the Company and its wholly-owned subsidiary.

On December 21, 2020, QCM, LLC, doing business as Quantum Capital Management, a wholly-owned subsidiary of Quantum Fund, LLC and an indirect wholly-owned subsidiary of the Bank, completed the sale of substantially all of its assets, which consisted primarily of client advisory agreements, for aggregate consideration of $250. The operations of Quantum Capital Management were not significant.

All significant intercompany accounts and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Due to the inherent uncertainty involved in making estimates, actual results reported in the future periods may be based upon amounts that could differ from those estimates.

Fair Value Measurements

The Bank utilizes fair value measurements to record fair value adjustments to certain assets and liabilities and to determine its fair value disclosures. The determination of fair values of financial instruments often requires the use of estimates. In cases where quoted market values in an active market are not readily available, the Bank uses present value techniques and other valuation methods, as disclosed in Note 15—Fair Values of Financial Instruments, to estimate the fair value of its financial instruments. These valuation methods require considerable judgment, and the resulting estimates of fair value can be significantly affected by the assumptions made and methods used.

Debt securities available for sale and equity securities with readily determinable fair values are recorded at fair value on a recurring basis. Additionally, from time to time, the Bank may be required to record other assets and liabilities on a nonrecurring basis, such as impaired loans, other real estate owned, nonmarketable equity securities and certain other assets and liabilities. These nonrecurring fair value adjustments generally involve write-downs of individual assets or application of lower of amortized cost or fair value accounting.

Consolidated Statements of Cash Flows

The Company presents the cash flows from customer loans, deposit transactions and short-term borrowings on a net basis in its consolidated statements of cash flows.

Cash flows related to loans are classified within operating and investing activities in the consolidated statements of cash flows based on their initial classification of the loan.

Cash and Due from Banks

Cash and due from Banks includes cash and time deposits and other deposits held with other banks with original maturities of three months or less.

Interest-bearing Deposits with Other Banks

Interest-bearing deposits with other banks, consisting of certificates of deposit, have maturities greater than three months and are carried at cost. Each certificate of deposit is below the FDIC insurance limit of $250. Interest income is recorded when earned.

Concentration of Credit Risk

The loan portfolio consists primarily of residential real estate loans, which are collateralized by real estate. At December 31, 2021 and 2020, residential real estate loans accounted for 83% and 81%, respectively, of total gross loans. In addition, most of these residential loans and other commercial loans have been made to individuals and businesses in the state of California, which are dependent on the area economy for their livelihoods and servicing of their loan obligation. At December 31, 2021 and 2020, approximately 85% and 87%, respectively, of gross loans was originated with respect to properties or businesses located in California.

Starting December 9, 2019, the Bank suspended its Advantage Loan Program and announced on March 6, 2020 that it permanently discontinued this program. Loans originated under this program comprised a significant component of the Bank’s total loan originations. Advantage Loan Program loans (including residential real estate loans held for sale of $11,359 at December 31, 2021, of which $8,671 were on nonaccrual status, and $19,375 at December 31, 2020, which were on nonaccrual status) totaled $1,185,458 and $1,515,248, or 69% and 74% of gross residential loans, at December 31, 2021 and 2020, respectively. Refer to Note 19—Commitments and Contingencies.

Employee Retention Credits Under the CARES Act

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was signed into law providing numerous tax provisions and other stimulus measures, including an employee retention credit (“ERC”), which was a refundable tax credit against certain employment taxes. The Taxpayer Certainty and Disaster Tax Relief Act of 2020 and the American Rescue Plan Act of 2021 extended and expanded the availability of the ERC through the third quarter of 2021. The ERC was equal to 70% of qualified wages paid to employees (including employer qualified health plan expenses) and was capped at $10,000 of qualified wages for each employee, such that the maximum ERC that can be claimed was $7,000 per employee for each of the first three quarters in 2021. As a result of the Company averaging 500 or fewer full-time employees in 2019, all wages paid to employees were eligible for the ERC (rather than just wages paid to employees not providing services).

The Company evaluated its eligibility for the ERC in the third quarter of 2021. The Company determined it qualified for the ERC for the first three quarters of 2021 because the Company’s gross receipts (which consisted of total interest income and other fees and income from banking activities and services) decreased more than 20% in 2021 from each of the respective quarters of 2019, the relevant criteria for the ERC. The Company has amended and filed certain payroll tax filings to apply for a refund for each of the first three quarters of 2021. The Company cannot reasonably estimate when it will receive the refunds.

Since there is not any U.S. GAAP guidance for for-profit business entities that receive government assistance that is not in the form of a loan, an income tax credit or revenue from a contract with a customer, the Company accounted for the ERC by analogy to International Accounting Standards 20 (“IAS 20”). Under IAS 20, a business entity would recognize the credit on a systematic basis over the periods in which it recognizes the payroll expenses for which the grant (tax credit) is intended to compensate when there is reasonable assurance that the entity will comply with any conditions attached to the grant and the grant will be received. The Company has made an accounting policy election to record the ERC benefit as a reduction to payroll expenses.

During the year ended December 31, 2021, the Company recorded a benefit of $6,529 resulting in a net reduction of salaries and employee benefits expense in the consolidated statements of operations. The Company has recorded a grant receivable of $6,529 in other assets in the consolidated balance sheet at December 31, 2021.

Investment Securities

Investment securities includes debt securities and equity securities.

Debt Securities

Debt securities are classified as either available for sale or held to maturity. Management determines the classification of the debt securities when they are purchased.

Debt securities available for sale are stated at fair value, with unrealized gains and losses excluded from income and shown as a separate component of shareholders’ equity in accumulated other comprehensive income (loss), net of tax. Held to maturity securities are carried at amortized cost when management has the positive intent and ability to hold them to maturity. The amortized cost of debt securities classified as held to maturity or available for sale is adjusted for amortization of premiums (noncallable) and accretion of discounts over the contractual life of the investment security using the effective interest method or, in the case of asset-backed securities, over the estimated life of the investment security using the effective yield method.

Interest income includes amortization or accretion of purchase premium or discount. Gains and losses on sales are recorded on the settlement date and determined using the specific identification method.

Management evaluates debt securities for other-than-temporary impairment at least on a quarterly basis and more frequently when economic or market conditions warrant such an evaluation. In determining other-than-temporary impairment for debt securities, management considers many factors, including: (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, (3) whether the market decline was affected by macroeconomic conditions, and (4) whether the Company has the intent to sell the debt security or more likely than not will be required to sell the debt security before its anticipated recovery. The assessment of whether a decline is other-than-temporary involves a high degree of subjectivity and judgment and is based on the information available to management at a point in time. A charge is recognized against income for all or a portion of the impairment if the loss is determined to be other than temporary.

If the Bank intends to sell the debt security or it is more likely than not that the Bank will be required to sell the debt security prior to the recovery of its amortized cost basis, the debt security is written down to fair value, and the full amount of any impairment charge is recorded as a loss in the consolidated statements of operations. If the Bank does not intend to sell the debt security and it is more likely than not that the Bank will not be required to sell the debt security prior to recovery of its amortized cost basis, only the current period credit loss of any impairment of a debt security is recognized in the consolidated statements of operations, with the remaining impairment recorded in other comprehensive income (loss).

Equity Securities

Equity securities with readily determinable fair values are stated at fair value with unrealized and realized gains and losses reported in income. Those equity securities without readily determinable fair values are recorded at cost, less any impairments, adjusted for subsequent observable price changes in orderly transactions for an identical or similar investment of the same issuer. Any changes in the carrying value of the equity investments are recognized in income.

Management performs a qualitative assessment each reporting period to identify impairment of equity securities without readily determinable fair values. When a qualitative assessment indicates that an impairment exists, management determines the fair value of the investment and if the fair value is less than the investment’s carrying value, an impairment charge is recorded in income equal to the difference between the fair value and the carrying amount of the investment.

Loans Held for Sale

The Bank originates certain loans intended for sale in the secondary market. Loans held for sale are carried at the lower of amortized cost or fair value on an individual loan basis. The fair value of loans held for sale are primarily determined based on quoted prices for similar loans in active markets or outstanding commitments from third-party investors. Net unrealized losses, if any, are recorded as a valuation allowance and charged to noninterest income in the consolidated statements of operations. Net gains and losses on loan sales are recorded as a component of non-interest income.

Performing residential real estate loans that are held for sale are generally sold with servicing rights retained. Upon the sale of an originated loan, the mortgage servicing right is recorded at its estimated fair value.

Loans that are originated and classified as held for investment are periodically sold in order to manage liquidity, asset credit quality, interest rate risk or concentration risk. Loans that are reclassified into loans held for sale from loans held for investment, due to a change in intent, are recorded at the lower of amortized cost or fair value. Any changes in fair value attributable to credit deterioration at the time of transfer are charged against the allowance for loan losses.

Loans

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at amortized cost, which includes the principal balance outstanding, net of unearned income, including unamortized loan fees and costs on originated loans, and allowances for loan losses. Loan origination fees, net of certain direct loan origination costs, are deferred and amortized over the contractual lives of the respective loans as a yield adjustment using the effective interest method. Other credit-related fees are recognized as fee income, as a component of non-interest income.

Interest income on loans is accrued as earned using the interest method over the term of the loan. The accrual of interest income is discontinued at the time the loan is 90 days past due or earlier if conditions warrant (i.e., nonaccrual loan). In all cases, loans are placed on nonaccrual status at an earlier date if collection of principal or interest is considered doubtful. When a loan is placed on nonaccrual status, interest accrued and unpaid during prior periods is reversed. Any payments received on nonaccrual loans are applied to interest income on a cash basis if the loan is considered well secured. Otherwise, all payments received are applied first to outstanding loan principal amounts and then to the recovery of the charged off loan amounts. Any excess is treated as a recovery of interest and fees. Loans are returned to accrual status after all principal and interest amounts contractually due are made and future payments are reasonably assured. Accrued interest receivable related to loans is recorded separately from the amortized cost basis of loans on the Company’s consolidated balance sheets.

A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans that have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings, as defined below, and classified as impaired.

Factors considered by management in determining if a loan is impaired include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed.

Commercial real estate loans, construction loans and commercial lines of credit are individually evaluated for impairment. If a loan is impaired, a portion of the allowance for loan losses is allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral or operations of collateral. Large groups of homogeneous loans, such as other consumer and residential real estate loans, are collectively evaluated for impairment and accordingly, are not separately identified for impairment disclosures.

Troubled Debt Restructurings

The Bank periodically grants concessions to its customers in an attempt to protect as much of its investment as possible and minimize the risk of loss. Loans that have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings. To determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed as part of the credit underwriting process.

Troubled debt restructurings are individually evaluated for impairment and included in the separately identified impairment disclosures. Troubled debt restructurings are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a troubled debt restructuring is considered a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. For loans that are considered troubled debt restructurings that subsequently go into default, the Bank determines the amount of the allowance for loan losses in accordance with the accounting policy for the allowance for loan losses on loans individually identified as impaired.

Allowance for Loan Losses

The allowance for loan losses is a valuation allowance for probable incurred credit losses, increased or decreased by the provision for loan losses and decreased by charge offs less recoveries. Loan losses are charged against the allowance for loan losses when a loan is considered partially or fully uncollectible or has such little value that continuance as an asset is not warranted. Subsequent recoveries, if any, are credited to the allowance for loan losses. Management estimates the allowance for loan losses balance using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations, estimated collateral values, economic conditions and other factors. Allocations of the allowance for loan losses may be made for specific loans, but the entire allowance for loan losses is available for any loan that, in management’s judgment, should be charged off.

The allowance for loan losses consists of specific and general components. The specific component relates to loans that are individually classified as impaired. The general component covers all other loans and is based on historical loss experience adjusted for general economic conditions and other qualitative factors by portfolio segment. The historical loss experience is determined by portfolio segment, discussed below, and is based on the actual loss history experienced over the most recent three-year period. This actual loss experience is supplemented with economic and other factors based on the risks present for each portfolio segment. These economic and other risk factors include consideration of the following: levels of and trends in delinquencies and impaired loans; levels of and trends in charge offs and recoveries; trends in portfolio volume; effects of any changes in underwriting standards; other changes in lending policies, procedures and practices; experience, ability and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations.

The following portfolio segments have been identified:

A)Residential Real Estate—The degree of risk in residential real estate lending depends primarily on the loan amount in relation to collateral value, the interest rate and the borrower’s ability to repay in an orderly fashion. Economic trends determined by unemployment rates and other key economic indicators are closely correlated to the credit quality of these loans. Weak economic trends indicate that the borrowers’ capacity to repay their obligations may be deteriorating. The classes in the residential real estate portfolio segment consist of residential first mortgages and residential second mortgages.

B)Commercial Real Estate—Adverse economic developments or an overbuilt market may impact commercial real estate projects and may result in troubled loans. Trends in vacancy rates of commercial properties impact the credit quality of these loans. High vacancy rates reduce operating revenues and the ability for the properties to produce sufficient cash flow to service debt obligations. The segmentation classes in the commercial real estate portfolio consist of retail, multifamily, offices, hotels/SROs, industrial and other.

C)Construction Loans—The construction loan portfolio is comprised of loans to builders and developers primarily for residential, commercial and mixed-use development. In addition to general commercial real estate risks, construction loans have additional risk of cost overruns, market deterioration during construction, lack of permanent financing and no operating history. There is no further segmentation of the construction portfolio segment into classes.

D)Commercial Lines of Credit—The commercial lines of credit portfolio is comprised of loans to businesses such as sole proprietorships, partnerships, limited liability companies and corporations for the daily operating needs of the business. The risk characteristics of these loans vary based on the borrowers’ business and industry as repayment is typically dependent on cash flows generated from the underlying business. These loans may be secured by real estate or other assets or may be unsecured. The segmentation classes in the commercial lines of credit portfolio consist of private banking loans and commercial & industrial (“C&I”) lending.

E)Other Consumer—The consumer loan portfolio currently consists only of overdraft protection lines with no further segmentation into classes. Economic trends determined by unemployment rates and other key economic indicators are closely correlated to the credit quality of these loans. Weak economic trends indicate the borrowers’ capacity to repay their obligations may be deteriorating.

Mortgage Servicing Rights, net

Servicing assets (mortgage servicing rights) are recognized separately when residential real estate loans are sold with servicing rights retained by the Bank. Mortgage servicing rights are initially recorded at fair value, which is determined based on an internal valuation model that calculates the present value of estimated future net servicing income. The servicing assets are subsequently measured using the amortization method which requires servicing assets to be amortized into non-interest income in the consolidated statements of operations in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal, or a fixed amount per loan, and are recognized as income when earned. The amortization of mortgage servicing rights is netted against loan servicing income. The Bank also records late fees and ancillary fees related to loan servicing which were not material for the periods presented.

On a quarterly basis, servicing assets are evaluated for impairment based upon the fair value of the mortgage servicing rights compared to their carrying amount. Impairment is determined by stratifying rights into groupings based on predominant risk characteristics, such as interest rate, loan type and investor type. If the carrying amount of an individual grouping exceeds fair value, impairment is recorded on that grouping so that the servicing asset is carried at fair value. Impairment is recognized through a valuation allowance for an individual grouping. If it is later determined that all or a portion of the impairment no longer exists for a particular grouping, a reduction of the valuation allowance may be recorded as an increase to income. The fair values of servicing assets are subject to significant fluctuations due to changes in estimated and actual prepayment speeds and default rates and losses.

Transfers of Financial Assets

Transfers of financial assets are accounted for as sales when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

FHLB Stock

The Bank is a member of the FHLB system. Members are required to own a certain amount of stock based on the level of FHLB borrowings and other factors and may invest additional amounts. The FHLB stock is carried at cost, classified as a restricted security and periodically evaluated for impairment based on ultimate recovery of par value. The FHLB stock does not have a readily determinable fair value and no quoted market value as the ownership is restricted to member institutions. Also, the FHLB stock is pledged as collateral on FHLB borrowings. Cash and stock dividends are reported as income in interest and dividends on investment securities and restricted stock in the consolidated statements of operations. Cash dividends received amounted to $609, $847 and $1,219 for the year ended December 31, 2021, 2020 and 2019, respectively.

Cash Surrender Value of Bank-Owned Life Insurance

The Bank has purchased life insurance policies on certain officers and employees. In addition, the Bank still owns policies on retired and former employees. Cash surrender value of bank-owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement.

Long-Lived Assets

Long-lived assets, such as leasehold improvements and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require long-lived assets or asset groups to be tested for possible impairment, the Company compares the undiscounted cash flows expected to be generated by that asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment charge is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques, such as discounted cash flow models and third-party independent appraisals.

Mortgage Repurchase Liability

In connection with portfolio loans sold in the secondary market, the Company makes customary representations and warranties about certain characteristics of each loan. The Company establishes a liability which may result from breaches in such representations and warranties. The mortgage repurchase liability reflects management’s estimate of such losses based on a combination of factors. The Company’s estimation process requires management to make subjective and complex judgments about matters that are inherently uncertain, such as expectations of future repurchase demands, economic factors, and findings from the Internal Review discussed in Note 19—Commitments and Contingencies. The actual loss on repurchases could vary significantly from the recorded repurchase liability, depending on the outcome of various factors.

Any loss on the repurchase of the Advantage Loan Program loans by the Company is charged against the mortgage repurchase liability, which is included in accrued expenses and other liabilities. The disposition of the mortgage servicing rights related to servicing the respective loans (as mortgage servicing of these loans was retained at the time of sale) is recorded in net servicing income (loss) in non-interest income in the consolidated statements of operations. The Advantage Loan Program loans that have been repurchased are then included in loans held for investment.

Legal Contingencies and Litigation Accruals

The Company is involved in several material legal proceedings, as disclosed in Note 19—Commitments and Contingencies. On a quarterly basis, management assesses potential losses in relation to these and other pending or threatened legal matters. If a loss is considered probable and the amount can be reasonably estimated, the Company recognizes an expense for the estimated loss. Estimates of any such loss are subjective in nature and require the evaluation of numerous facts and assumptions as to future events, including the application of legal precedent that may be conflicting. To the extent these estimates are more or less than the actual liability resulting from the resolution of these matters, the Company’s net income (loss) will be increased or decreased accordingly. If the differences are material, the Company’s consolidated financial statements could be materially impacted.

Revenue from Contracts with Customers

In accordance with ASC 606, Revenue from Contracts with Customers, the Company recognizes revenue when control of promised goods or services is transferred to customers in an amount that reflects the consideration the Company expects to be entitled to receive in exchange for those goods or services as performance obligations are satisfied.

The majority of the Company’s revenues are from interest income and other sources, including loans and investment securities, as well as fees related to mortgage servicing activities, which are not within the scope of ASC 606 and are instead subject to other accounting guidance. The Company’s services that are within the scope of ASC 606 are recorded within non-interest income, which includes investment management and advisory fees, service charges on deposit accounts, interchange income and other service charges and fees. Descriptions of these activities that are within the scope of ASC 606, which are presented in the consolidated statements of operations as components of non-interest income, are as follows:

Service charges on deposit accounts: The Bank earns fees from its deposit customers for transaction-based, account maintenance and overdraft services. Transaction-based fees, which include services such as ATM use fees, stop payment charges, statement rendering and ACH fees, are recognized at the time the transaction is executed as that is the point in time the Bank fulfills the customer’s request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Bank satisfies the performance obligations. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposit accounts are withdrawn from the customer’s account balance.

Investment management and advisory fees: Before December 2020, the Bank entered into contracts with certain customers to provide asset management services that continued indefinitely unless terminated in writing by either party to the contract. The Bank received a quarterly management fee, payable in advance, based on the customer’s assets held under management at the beginning of the period. These fees were earned over time as the Bank provided the contracted services and were assessed based on a tiered rate applied to the market value of assets held under management. The Bank did not earn performance-based incentives.

Interchange fees: The Bank earns interchange fees from debit cardholder transactions conducted through the MasterCard payment network. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder. Such interchange activity is shown on a net basis through non-interest income, other income.

Other service charges and fees: Other charges and fees includes revenue generated from wire transfers, lockboxes and bank issuance of checks. Such fees are recognized at the point in time the customer requests the service and the service is rendered.

Stock-based Compensation

Compensation cost is recognized for stock options and restricted stock awards issued to employees and non-employee members of the Company’s board of directors, based on the fair value of these awards at the date of grant. The fair value of stock options is estimated using a Black-Scholes option pricing model, and the fair value of restricted stock awards is based on the market price of the Company’s common stock at the date of grant reduced by the present value of dividends per share expected to be paid during the period the shares are not vested.

Compensation cost is recorded over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recorded on a straight-line basis over the requisite service period of the entire award. The Company’s accounting policy is to record forfeitures in the period that they occur.

Comprehensive Income

Comprehensive income consists of net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on debt securities available for sale, net of income taxes, which is also recognized as a separate component of shareholders’ equity. The Company releases the income tax effects on unrealized gains and losses on debt securities available for sale that are reported in other comprehensive income (loss) on a security-by-security basis when debt securities are sold.

Loan Commitments and Related Financial Instruments

Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded.

Assets Held under Administration and Investment Management and Advisory Fees

The Company does not include assets held in fiduciary or agency capacities in the consolidated balance sheets, as such assets held under administration are not assets of the Company. Fees from asset management activities were recorded on an accrual basis over the period in which the service was provided. Fees, as set forth in the underlying customer contract, are a function of the market value of assets administrated and managed. Effective December 21, 2020, the Bank no longer offers asset management services.

Income Taxes

Income taxes are provided for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred taxes of a change in tax rates is recognized in income in the period the change occurs. Deferred tax assets are reduced, through a valuation allowance, if necessary, by the amount of such benefits that are not expected to be realized based on current available evidence.

A tax position is recognized as a benefit only if it is more likely than not that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the more likely than not test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense.

Income (Loss) per Share, Basic and Diluted

Basic income (loss) per share represents net income (loss) divided by the weighted average number of common shares outstanding during the period. In periods of income, diluted income per share represents net income divided by the weighted average number of common shares outstanding during the period, plus the effect of outstanding potential dilutive common shares. In periods of a net loss, basic and diluted per share information are the same.

Recently Issued Accounting Guidance Not Yet Adopted

In June 2016, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which is intended to improve financial reporting by requiring recording of credit losses on loans and other financial instruments on a more timely basis. The guidance will replace the current incurred loss accounting model with an expected loss approach and requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The guidance requires enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. In April 2019, the FASB issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, which clarifies the scope of the credit losses standard and addresses issues related to accrued interest receivable balances and recoveries, among other things. In May 2019, the FASB issued ASU No. 2019-05, Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief. The amendments provide entities with an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis, upon adoption of Topic 326. In November 2019, the FASB issued ASU No. 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates. This update deferred the effective dates of Topic 326 to January 1, 2023 for certain entities including smaller reporting companies as defined by the U.S. Securities and Exchange Commission (the “SEC”). The Company, as a smaller reporting company as of the relevant measuring period, qualifies for this extension.

At this time, a cross-functional implementation team consisting of individuals from accounting, finance, servicing and information systems is working with the Bank’s loan system vendor, and they have developed an application to create credit loss estimation models and processes. The historical data set for model development has been finalized, and the credit loss estimation models have been developed and tested. Once the credit loss estimation models are finalized, the Bank will run the new credit loss estimation models in parallel with the current allowance for loan losses model to understand the differences in the models and assess the impact of the change. The Company expects to recognize a cumulative effect adjustment to the opening balance of retained earnings as of January 1, 2023, the beginning of the first reporting period in which ASU No. 2016-13 is effective. The Company has not yet determined the magnitude of any such one-time cumulative adjustment or of the overall impact of ASU No. 2016-13 on its consolidated financial statements.

Reclassifications

Certain prior period amounts have been reclassified to conform with the current period presentation. The Company has reclassified custodial escrow balances maintained with serviced loans of $6,051 from accrued expenses and other liabilities to noninterest-bearing deposits and reclassified accrued interest of $25,496 on time deposits from accrued expenses and other liabilities to interest-bearing deposits in the consolidated balance sheet at December 31, 2020.

Investment Securities

12 Months Ended

Dec. 31, 2021

Investment Securities

Investment Securities

Note 3—Investment Securities

Debt Securities

The following tables summarize the amortized cost and fair value of debt securities available for sale at December 31, 2021 and 2020 and the corresponding amounts of gross unrealized gains and losses:


	December 31, 2021
	Amortized		Gross Unrealized				Fair
	Cost		Gain		Loss		Value
Available for sale:
U.S. Treasury and Agency securities	$	122,291	$	106	$	(229)	$	122,168
Mortgage-backed securities		49,739		84		(386)		49,437
Collateralized mortgage obligations		137,662		530		(1,343)		136,849
Collateralized debt obligations		211		—		(8)		203
Total	$	309,903	$	720	$	(1,966)	$	308,657


	December 31, 2020
	Amortized		Gross Unrealized				Fair
	Cost		Gain		Loss		Value
Available for sale:
U.S. Treasury and Agency securities	$	138,742	$	255	$	—	$	138,997
Mortgage-backed securities		33,743		72		(1)		33,814
Collateralized mortgage obligations		126,359		628		(391)		126,596
Collateralized debt obligations		214		—		(27)		187
Total	$	299,058	$	955	$	(419)	$	299,594

Securities with a fair value of $122,168 were pledged as collateral on FHLB borrowings at December 31, 2021.

All of the Company’s mortgage-backed securities, and a majority of the Company’s collateralized mortgage obligations are issued and/or guaranteed by a U.S. government agency (Government National Mortgage Association) or a U.S. government-sponsored enterprise (Federal Home Loan Mortgage Corporation (“Freddie Mac”) or Federal National Mortgage Association (“Fannie Mae”)). The fair value of the private-label collateralized mortgage obligations was $529 and $816 at December 31, 2021 and 2020, respectively.

No securities of any single issuer, other than debt securities issued by the U.S. government, government agency and government-sponsored enterprises, were in excess of 10% of total shareholders’ equity as of December 31, 2021 and 2020.

Information pertaining to sales of debt securities available for sale for the year ended December 31, 2021, 2020 and 2019 is as follows:


	2021		2020		2019
Proceeds	$	—	$	99,971	$	2,914

Gross realized gains	$	—	$	337	$	6
Gross realized losses		—		(158)		—
Total net realized gains	$	—	$	179	$	6

The income tax expense related to the net realized gains was $50 and $1 for the year ended December 31, 2020 and 2019, respectively.

The amortized cost and fair value of U.S. Treasury and Agency securities at December 31, 2021 are shown by contractual maturity in the table below. Mortgage-backed securities, collateralized mortgage obligations and collateralized debt obligations are disclosed separately as the expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties.


	Amortized		Fair
	Cost		Value
U.S. Treasury and Agency securities:
Due less than one year	$	50,313	$	50,306
Due after one year through five years		71,978		71,862
Mortgage-backed securities		49,739		49,437
Collateralized mortgage obligations		137,662		136,849
Collateralized debt obligations		211		203
Total	$	309,903	$	308,657

The following table summarizes debt securities available for sale, at fair value, with unrealized losses at December 31, 2021 and 2020 aggregated by major security type and length of time the individual securities have been in a continuous unrealized loss position:


	December 31, 2021
	Less than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
U.S. Treasury and Agency securities	$	49,865	$	(229)	$	—	$	—	$	49,865	$	(229)
Mortgage-backed securities		7,878		(36)		8,729		(350)		16,607		(386)
Collateralized mortgage obligations		86,354		(1,342)		2,413		(1)		88,767		(1,343)
Collateralized debt obligations		—		—		203		(8)		203		(8)
Total	$	144,097	$	(1,607)	$	11,345	$	(359)	$	155,442	$	(1,966)


	December 31, 2020
	Less than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
Mortgage-backed securities	$	5,694	$	(1)	$	—	$	—	$	5,694	$	(1)
Collateralized mortgage obligations		75,740		(391)		—		—		75,740		(391)
Collateralized debt obligations		—		—		187		(27)		187		(27)
Total	$	81,434	$	(392)	$	187	$	(27)	$	81,621	$	(419)

As of December 31, 2021, the debt securities portfolio consisted of 29 debt securities, with 16 debt securities in an unrealized loss position. For debt securities in an unrealized loss position, management has both the intent and ability to hold these investments until the recovery of the decline. The fair value is expected to increase as these securities approach their maturity date or repricing date or if market yields for such investments decline. Accordingly, as of December 31, 2021, the unrealized losses in these securities are due to non-credit-related factors, including changes in interest rates and other market conditions; thus, the impairment was determined to be temporary. All interest and dividends are considered taxable.

A collateralized debt obligation with a carrying value of $203 and $187 at December 31, 2021 and 2020, respectively, was rated high quality at inception, but it was subsequently rated by Moody’s as Ba1, which is defined as “speculative.” The issuers of the underlying investments (the collateral) of the collateralized debt obligation are primarily banks. Management uses in-house and third-party other-than-temporary impairment evaluation models to compare the present value of expected cash flows to the previous estimate to ensure there are no adverse changes in cash flows during the period. The other-than-temporary impairment model considers the structure and term of the collateralized debt obligations and the financial condition of the underlying issuers. Assumptions used in the model include expected future default rates and prepayments. The collateralized debt obligation remained classified as available for sale and represented $8 and $27 of the unrealized losses reported at December 31, 2021 and 2020, respectively.

Equity Securities

Equity securities consist of an investment in a qualified community reinvestment act investment fund, which is a publicly-traded mutual fund and an investment in the common equity of Pacific Coast Banker’s Bank, a thinly traded restricted stock. At December 31, 2021 and 2020, equity securities totaled $5,222 and $5,364, respectively, and are included in investment securities in the consolidated balance sheets.

Equity securities with readily determinable fair values are stated at fair value with realized and unrealized gains and losses reported in income. At December 31, 2021 and 2020, equity securities with readily determinable fair values were $4,976 and $5,118, respectively. The following is a summary of unrealized and realized gains and losses recognized in the consolidated statements of operations:


	Year Ended
	December 31,
	2021		2020		2019
Net gains (losses) recorded during the period on equity securities	$	(142)	$	108	$	114
Less: net gains (losses) recorded during the period on equity securities sold during the period		—		—		—
Unrealized gains (losses) recorded during the period on equity securities held at the reporting date	$	(142)	$	108	$	114

The Company has elected to account for its investment in a thinly traded, restricted stock using the measurement alternative for equity securities without readily determinable fair values, resulting in the investment carried at cost based on no evidence of impairment or observable trading activity during 2021 and 2020. The investment was reported at $246 at December 31, 2021 and 2020.

Loans

12 Months Ended

Dec. 31, 2021

Loans

Loans

Note 4—Loans

Loans Held for Sale

The major categories of loans held for sale were as follows:


	December 31,
	2021		2020
Residential real estate	$	11,359	$	22,284
Commercial real estate		53,628		—
Total loans held for sale	$	64,987	$	22,284

At December 31, 2021, loans held for sale includes nonaccrual loans of $18,026, consisting of residential real estate loans of $8,671 and commercial real estate loans of $9,355, of which one commercial real estate loan of $2,059 was considered a troubled debt restructuring.

During the year ended December 31, 2021, commercial real estate loans with a carrying value of $61,549 were reclassified as loans held for sale from loans held for investment due to management’s change in intent and decision to sell the loans. On the date of transfer, the amortized cost exceeded the fair value of the loans due to credit deterioration. The Bank recorded a charge-off of $7,921 to the allowance for loan losses, which established a new aggregate cost basis for the loans of $53,628 on the date of transfer. Subsequent to December 31, 2021, commercial real estate loans were sold to a third-party investor as disclosed in Note 21—Subsequent Events.

During the year ended December 31, 2020, nonaccrual residential real estate loans with a carrying value of $22,861 were reclassified as loans held for sale from loans held for investment due to management’s change in intent and decision to sell the loans. On the date of transfer, the amortized cost exceeded the fair value of the loans due to credit deterioration. The Bank recorded a charge-off of $3,486 to the allowance for loan losses, which established a new aggregate cost basis for the loans of $19,375 on the date of transfer.

Loans Held for Investment and Allowance for Loan Losses

The major categories of loans held for investment and the allowance for loan losses were as follows:


	December 31,
	2021		2020
Residential real estate	$	1,704,231	$	2,033,526
Commercial real estate		201,240		259,958
Construction		106,759		206,581
Commercial lines of credit		363		6,671
Other consumer		221		7
Total loans		2,012,814		2,506,743
Less: allowance for loan losses		(56,548)		(72,387)
Loans, net	$	1,956,266	$	2,434,356

Loans totaling $557,410 and $630,197 were pledged as collateral on FHLB borrowings at December 31, 2021 and 2020, respectively.

The following tables present the activity in the allowance for loan losses by portfolio segment for the year ended December 31, 2021, 2020 and 2019:


							Commercial
	Residential		Commercial				Lines of		Other
December 31, 2021	Real Estate		Real Estate		Construction		Credit		Consumer		Unallocated		Total
Allowance for loan losses:
Beginning balance	$	32,366	$	21,942	$	17,988	$	91	$	—	$	—	$	72,387
Provision (recovery) for loan losses		(1,578)		(2,052)		(4,552)		(83)		—		—		(8,265)
Charge offs		—		(7,921)		(1,965)		—		—		—		(9,886)
Recoveries		1,414		639		259		—		—		—		2,312
Total ending balance	$	32,202	$	12,608	$	11,730	$	8	$	—	$	—	$	56,548

							Commercial
	Residential		Commercial				Lines of		Other
December 31, 2020	Real Estate		Real Estate		Construction		Credit		Consumer		Unallocated		Total
Allowance for loan losses:
Beginning balance	$	12,336	$	5,243	$	3,822	$	328	$	1	$	—	$	21,730
Provision (recovery) for loan losses		23,604		16,634		14,866		(237)		(2)		—		54,865
Charge offs		(3,594)		—		(707)		—		—		—		(4,301)
Recoveries		20		65		7		—		1		—		93
Total ending balance	$	32,366	$	21,942	$	17,988	$	91	$	—	$	—	$	72,387

							Commercial
	Residential		Commercial				Lines of		Other
December 31, 2019	Real Estate		Real Estate		Construction		Credit		Consumer		Unallocated		Total
Allowance for loan losses:
Beginning balance	$	13,826	$	2,573	$	3,273	$	1,058	$	1	$	1,119	$	21,850
Provision (recovery) for loan losses		(1,511)		2,509		542		(554)		—		(1,119)		(133)
Charge offs		—		—		—		(176)		—		—		(176)
Recoveries		21		161		7		—		—		—		189
Total ending balance	$	12,336	$	5,243	$	3,822	$	328	$	1	$	—	$	21,730

The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment by impairment methodology as of December 31, 2021 and 2020:


							Commercial
	Residential		Commercial				Lines of		Other
December 31, 2021	Real Estate		Real Estate		Construction		Credit		Consumer		Unallocated		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	159	$	—	$	—	$	—	$	—	$	—	$	159
Collectively evaluated for impairment		32,043		12,608		11,730		8		—		—		56,389
Total ending allowance balance	$	32,202	$	12,608	$	11,730	$	8	$	—	$	—	$	56,548
Loans:
Loans individually evaluated for impairment	$	350	$	4,441	$	14,984	$	116	$	—	$	—	$	19,891
Loans collectively evaluated for impairment		1,703,881		196,799		91,775		247		221		—		1,992,923
Total ending loans balance	$	1,704,231	$	201,240	$	106,759	$	363	$	221	$	—	$	2,012,814


							Commercial
	Residential		Commercial				Lines of		Other
December 31, 2020	Real Estate		Real Estate		Construction		Credit		Consumer		Unallocated		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	41	$	287	$	1,905	$	4	$	—	$	—	$	2,237
Collectively evaluated for impairment		32,325		21,655		16,083		87		—		—		70,150
Total ending allowance balance	$	32,366	$	21,942	$	17,988	$	91	$	—	$	—	$	72,387
Loans:
Loans individually evaluated for impairment	$	208	$	20,974	$	48,871	$	3,981	$	—	$	—	$	74,034
Loans collectively evaluated for impairment		2,033,318		238,984		157,710		2,690		7		—		2,432,709
Total ending loans balance	$	2,033,526	$	259,958	$	206,581	$	6,671	$	7	$	—	$	2,506,743

The following tables present information related to impaired loans by class of loans as of and for the periods indicated:


	At December 31, 2021						Year Ended December 31, 2021
	Unpaid						Average		Interest		Cash Basis
	Principal		Recorded		Allowance for		Recorded		Income		Interest
	Balance		Investment		Loan Losses		Investment		Recognized		Recognized
With no related allowance for loan losses recorded:
Residential real estate, first mortgage	$	91	$	65	$	—	$	79	$	—	$	—
Commercial real estate:
Retail		—		—		—		612		—		—
Hotels/Single-room occupancy hotels		4,459		4,441		—		14,370		—		—
Office		—		—		—		1,846		—		—
Other		—		—		—		68		—		—
Construction		15,004		14,984		—		30,239		231		218
Commercial lines of credit:
Private banking		116		116		—		1,034		8		8
Subtotal		19,670		19,606		—		48,248		239		226
With an allowance for loan losses recorded:
Residential real estate, first mortgage		273		285		159		281		3		3
Construction		—		—		—		2,541		219		200
Subtotal		273		285		159		2,822		222		203
Total	$	19,943	$	19,891	$	159	$	51,070	$	461	$	429


	At December 31, 2020						Year Ended December 31, 2020
	Unpaid						Average		Interest		Cash Basis
	Principal		Recorded		Allowance for		Recorded		Income		Interest
	Balance		Investment		Loan Losses		Investment		Recognized		Recognized
With no related allowance for loan losses recorded:
Residential real estate, first mortgage	$	116	$	94	$	—	$	96	$	—	$	—
Commercial real estate:
Retail		1,247		1,029		—		1,065		58		48
Hotels/Single-room occupancy hotels		11,428		11,419		—		5,221		—		—
Construction		42,669		41,951		—		29,395		964		744
Commercial lines of credit:
Private banking		—		—		—		1,505		42		35
C&I lending		3,857		3,857		—		1,184		—		—
Subtotal		59,317		58,350		—		38,466		1,064		827
With an allowance for loan losses recorded:
Residential real estate, first mortgage		114		114		41		116		5		4
Commercial real estate, hotels/single-room occupancy hotels		8,645		8,526		287		3,858		—		—
Construction		6,920		6,920		1,905		6,189		255		226
Commercial lines of credit, private banking		124		124		4		128		7		6
Subtotal		15,803		15,684		2,237		10,291		267		236
Total	$	75,120	$	74,034	$	2,237	$	48,757	$	1,331	$	1,063


	At December 31, 2019						Year Ended December 31, 2019
	Unpaid						Average		Interest		Cash Basis
	Principal		Recorded		Allowance for		Recorded		Income		Interest
	Balance		Investment		Loan Losses		Investment		Recognized		Recognized
With no related allowance for loan losses recorded:
Residential real estate, first mortgage	$	125	$	98	$	—	$	104	$	—	$	—
Commercial real estate:
Retail		1,308		1,100		—		1,136		60		55
Multifamily		—		—		—		449		12		12
Office		—		—		—		378		25		25
Construction		17,156		17,112		—		6,682		582		575
Commercial lines of credit:
Private banking		1,245		1,245		—		—		—		—
C&I lending		—		—		—		67		5		5
Subtotal		19,834		19,555		—		8,816		684		672
With an allowance for loan losses recorded:
Residential real estate, first mortgage		116		117		43		118		5		5
Commercial lines of credit, private banking		132		132		5		136		7		7
Subtotal		248		249		48		254		12		12
Total	$	20,082	$	19,804	$	48	$	9,070	$	696	$	684

In the tables above, the unpaid principal balance is not reduced for partial charge offs. Also, the recorded investment excludes accrued interest receivable on loans, which was not significant.

Also presented in the table above is the average recorded investment of the impaired loans and the related amount of interest recognized during the time within the period that the impaired loans were impaired. When the ultimate collectability of the total principal of an impaired loan is in doubt and the loan is on nonaccrual status, all payments are applied to principal under the cost recovery method. When the ultimate collectability of the total principal of an impaired loan is not in doubt and the loan is on nonaccrual status, contractual interest is credited to interest income when received under the cash basis method. The average balances are calculated based on the month-end balances of the loans for the period reported.

The following table presents the recorded investment in nonaccrual and loans past due over 90 days still on accrual, excluding nonaccrual loans held for sale, by class of loans as of December 31, 2021 and 2020:


	At December 31,
	2021				2020
			Loans Past				Loans Past
			Due Over 90				Due Over 90
			Days Still				Days Still
	Nonaccrual		Accruing		Nonaccrual		Accruing
Residential real estate:
Residential first mortgage	$	45,439	$	39	$	20,043	$	46
Residential second mortgage		236		—		686		—
Commercial real estate:
Retail		—		—		20		—
Hotels/Single-room occupancy hotels		4,441		—		19,945		—
Construction		12,499		—		41,873		—
Commercial lines of credit:
Private banking		—		—		2,285		—
C&I lending		—		—		1,572		—
Total	$	62,615	$	39	$	86,424	$	46

The following tables present the aging of the recorded investment in past due loans as of December 31, 2021 and 2020 by class of loans:


	30 ‑ 59		60 ‑ 89		Greater than
	Days		Days		89 Days		Total		Loans Not
December 31, 2021	Past Due		Past Due		Past Due		Past Due		Past Due		Total
Residential real estate:
Residential first mortgage	$	24,044	$	3,425	$	45,478	$	72,947	$	1,617,509	$	1,690,456
Residential second mortgage		107		—		236		343		13,432		13,775
Commercial real estate:
Retail		—		—		—		—		19,574		19,574
Multifamily		—		—		—		—		96,960		96,960
Office		—		—		—		—		12,382		12,382
Hotels/Single-room occupancy hotels		—		—		4,441		4,441		9,780		14,221
Industrial		—		—		—		—		7,320		7,320
Other		—		—		—		—		50,783		50,783
Construction		10,500		—		12,499		22,999		83,760		106,759
Commercial lines of credit:
Private banking		—		—		—		—		116		116
C&I lending		—		—		—		—		247		247
Other consumer		—		—		—		—		221		221
Total	$	34,651	$	3,425	$	62,654	$	100,730	$	1,912,084	$	2,012,814


	30 ‑ 59		60 ‑ 89		Greater than
	Days		Days		89 Days		Total		Loans Not
December 31, 2020	Past Due		Past Due		Past Due		Past Due		Past Due		Total
Residential real estate:
Residential first mortgage	$	37,819	$	14,524	$	20,089	$	72,432	$	1,943,602	$	2,016,034
Residential second mortgage		362		134		686		1,182		16,310		17,492
Commercial real estate:
Retail		1,010		—		20		1,030		15,170		16,200
Multifamily		3,835		—		—		3,835		75,374		79,209
Office		—		—		—		—		27,061		27,061
Hotels/Single-room occupancy hotels		—		—		19,945		19,945		47,690		67,635
Industrial		—		—		—		—		13,186		13,186
Other		—		—		—		—		56,667		56,667
Construction		8,593		2,514		41,873		52,980		153,601		206,581
Commercial lines of credit:
Private banking		—		—		2,285		2,285		124		2,409
C&I lending		—		—		1,572		1,572		2,690		4,262
Other consumer		—		—		—		—		7		7
Total	$	51,619	$	17,172	$	86,470	$	155,261	$	2,351,482	$	2,506,743

The aging of the loans in the above table as of December 31, 2020 has not been adjusted for customers that were granted a payment deferral in response to COVID-19. These loans have been presented in the aging category that was applicable at the time of payment deferral. Interest continued to accrue on these loans while in forbearance. Refer to —Forbearance Loans for further information.

The Company considers the performance of the loan portfolio and its impact on the allowance for loan losses. For residential real estate and other consumer loans, the Company also evaluates credit quality based on the aging status of the loan, which is presented above, and by payment activity. The Company reviews the status of nonperforming loans, which include loans 90 days past due and still accruing, and nonaccrual loans.

Troubled Debt Restructurings

At December 31, 2021 and 2020, the balance of outstanding loans identified as troubled debt restructurings, along with the allocated portion of the allowance for loan losses with respect to these loans, was as follows:


	At December 31,
	2021				2020
	Recorded		Allowance for		Recorded		Allowance for
	Investment		Loan Losses		Investment		Loan Losses
Residential real estate, first mortgage	$	181	$	39	$	209	$	41
Commercial real estate:
Retail		—		—		1,029		—
Hotels/Single-room occupancy hotels⁽¹⁾		4,441		—		—		—
Construction		13,678		—		26,985		1,906
Commercial lines of credit, private banking		116		—		124		4
Total	$	18,416	$	39	$	28,347	$	1,951

(1)	The recorded investment included in Hotels/Single-room occupancy hotels was in Construction loans at December 31, 2020.

During the year ended December 31, 2021, there were no loans that defaulted for which the default occurred within one year of modification. At December 31, 2021, there were five loans totaling $15,752 in default that had been modified as troubled debt restructurings.

During the year ended December 31, 2020, the terms of three construction loans and one private banking loan were modified by providing for an extension of the maturity dates at the contract’s existing rate of interest, which is lower than the current market rate for new debt with similar risk. The outstanding recorded investment was $13,777 both before and after modification. Five construction loans, totaling $19,987 as of December 31, 2020, identified as troubled debt restructurings subsequently defaulted. The effect of the defaults on the allowance for loan losses was not significant due to collateral coverage.

The terms of certain other loans have been modified during 2021 and 2020 that did not meet the definition of a troubled debt restructuring. These other loans that were modified were not considered significant.

Forbearance Loans

As a response to the COVID-19 pandemic, the Company had offered forbearance under the CARES Act to customers facing COVID-19-related financial difficulties. The CARES Act created a forbearance program for impacted borrowers and imposed a temporary 60-day moratorium on foreclosures and foreclosure-related evictions related to federally backed mortgage loans, which included loans secured by a first or subordinate lien on residential one-to-four family real property that have been purchased by Fannie Mae or Freddie Mac, are insured by HUD or are insured or guaranteed by other listed agencies. Borrowers of such federally backed mortgage loans experiencing a financial hardship as a result of COVID-19 could request forbearance, regardless of delinquency status, for up to 360 days. Subsequently, the federal agencies extended these programs on multiple occasions into late 2021, but they have since expired. The California legislature responded by enacting some statewide eviction protections which are in some cases supplemented by local ordinances, while the New York legislature extended the state’s eviction moratorium until January 2022.

Certain provisions of the CARES Act encouraged financial institutions to practice prudent efforts to work with borrowers impacted by the COVID-19 pandemic. Under these provisions, a modification deemed to be COVID-19-related was not considered a troubled debt restructuring if the loan was not more than 30 days past due as of December 31, 2019 and the deferral was executed between March 1, 2020 and the earlier of 60 days after the date of termination of the COVID-19 national emergency or January 1, 2022. The banking regulators issued similar guidance, which also clarified that short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief were not troubled debt restructurings.

In this context, the Company implemented a COVID-19 forbearance program that generally provided for principal and interest forbearance for 120 days to residential borrowers with extensions available to qualified borrowers available for up to a maximum deferral period of twelve months, and these loans were not considered troubled debt restructurings. Under the forbearance program, interest continued to accrue at the note rate. At the end of the forbearance period, the borrower’s accrued but unpaid interest was added to their outstanding principal balance while keeping the principal and interest payment at the amount determined in accordance with the terms of the note, thus extending the loan’s maturity date. The terms of commercial loan forbearances were reviewed and determined on a case-by-case basis, and these loans were not considered troubled debt restructurings. The Bank terminated the forbearance program, effective July 31, 2021.

Forbearance loans under the COVID-19 forbearance program totaled $15,785 at December 31, 2020. Total accrued interest receivables on these loans were $146 at December 31, 2020. There were no loans at December 31, 2021 under the COVID-19 forbearance program.

Foreclosure Proceedings

At December 31, 2021 and 2020, the recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process totaled $2,780 and $5,320, respectively. Of the loans in formal foreclosure proceedings, $2,770 and $3,209 were included in loans held for sale in the consolidated balance sheets at December 31, 2021 and 2020, respectively, and were carried at the lower of amortized cost or fair value. The balance of loans are classified as held for investment and receive an allocation of the allowance for loan losses consistent with a substandard loan loss allocation rate as these loans were classified as substandard at December 31, 2021 and 2020.

Credit Quality

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis includes homogeneous loans, such as residential real estate and other consumer loans, and non-homogeneous loans, such as commercial lines of credit, construction and commercial real estate loans. This analysis is performed at least quarterly. The Company uses the following definitions for risk ratings:

Pass: Loans are of satisfactory quality.

Special Mention: Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Company’s credit position at some future date.

Substandard: Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the loan. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.

Doubtful: Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, based on currently existing facts, conditions and values, highly questionable and improbable.

At December 31, 2021 and 2020, the risk rating of loans by class of loans was as follows:


			Special
December 31, 2021	Pass		Mention		Substandard		Doubtful		Total
Residential real estate:
Residential first mortgage	$	1,644,974	$	—	$	45,249	$	233	$	1,690,456
Residential second mortgage		13,539		—		236		—		13,775
Commercial real estate:
Retail		18,846		728		—		—		19,574
Multifamily		75,543		8,104		13,313		—		96,960
Office		10,413		—		1,969		—		12,382
Hotels/Single-room occupancy hotels		8,205		—		6,016		—		14,221
Industrial		7,320		—		—		—		7,320
Other		48,996		1,692		95		—		50,783
Construction		67,254		17,226		16,348		5,931		106,759
Commercial lines of credit:
Private banking		116		—		—		—		116
C&I lending		236		11		—		—		247
Other consumer		221		—		—		—		221
Total	$	1,895,663	$	27,761	$	83,226	$	6,164	$	2,012,814


			Special
December 31, 2020	Pass		Mention		Substandard		Doubtful		Total
Residential real estate:
Residential first mortgage	$	1,995,945	$	—	$	19,995	$	94	$	2,016,034
Residential second mortgage		16,806		—		686		—		17,492
Commercial real estate:
Retail		13,599		1,572		1,029		—		16,200
Multifamily		55,772		14,238		9,199		—		79,209
Office		12,014		1,623		13,424		—		27,061
Hotels/Single-room occupancy hotels		9,115		17,984		40,536		—		67,635
Industrial		5,867		—		7,319		—		13,186
Other		43,193		7,732		5,742		—		56,667
Construction		152,577		14,234		32,850		6,920		206,581
Commercial lines of credit:
Private banking		124		2,285		—		—		2,409
C&I lending		3,573		—		689		—		4,262
Other consumer		7		—		—		—		7
Total	$	2,308,592	$	59,668	$	131,469	$	7,014	$	2,506,743

During the year ended December 31, 2021 and 2020, the Bank repurchased pools of Advantage Loan Program loans with a total outstanding principal balance of $173,829 and $69,638, respectively. The Advantage Loan Program loans that have been repurchased and included in the loan portfolio have an outstanding principal balance of $171,185 and $57,039 at December 31, 2021 and 2020, respectively. For more information on the repurchases of Advantage Loan Program loans, refer to Note 19—Commitments and Contingencies.

During the year ended December 31, 2019, the Bank sold pools of residential real estate mortgages for $173,382 to third-party investors. The transactions resulted in full de-recognition of the mortgages (i.e., transferred assets) from the consolidated balance sheet and recognition of a gain on sale of portfolio loans of $5,970 for the year ended December 31, 2019.

Leasehold Improvements and Equipment, net

12 Months Ended

Dec. 31, 2021

Leasehold Improvements and Equipment, net

Leasehold Improvements and Equipment, net

Note 5—Leasehold Improvements and Equipment, net

Leasehold improvements and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation and amortization are determined using the straight-line method. Leasehold improvements and equipment at December 31, 2021 and 2020 are as follows:


	Estimated
	Useful
	Life
	(in years)	2021		2020
Leasehold improvements	*	$	11,527	$	11,259
Furniture and equipment	3 ‑ 7		14,568		14,361
Total			26,095		25,620
Less: accumulated depreciation and amortization			(18,674)		(17,108)
Leasehold improvements and equipment, net		$	7,421	$	8,512

* Amortized over the shorter of the lease term or estimated useful life

The amount charged to occupancy and equipment in the consolidated statements of operations for depreciation and amortization was $1,754, $1,608 and $1,621 for the year ended December 31, 2021, 2020 and 2019, respectively.

Mortgage Servicing Rights, net

12 Months Ended

Dec. 31, 2021

Mortgage Servicing Rights, net

Mortgage Servicing Rights, net

Note 6—Mortgage Servicing Rights, net

The Bank records servicing assets from the sale of residential real estate mortgage loans to the secondary market for which servicing has been retained. Residential real estate mortgage loans serviced for others are not included in the consolidated balance sheets. The principal balance of these loans at December 31, 2021 and 2020 are as follows:


	2021		2020
Residential real estate mortgage loan portfolios serviced for:
FNMA	$	124,764	$	171,553
FHLB		40,209		64,661
Private investors		142,810		429,816
Total	$	307,783	$	666,030

Custodial escrow balances maintained with these serviced loans were $5,501 and $6,051 at December 31, 2021 and 2020, respectively. These balances are included in noninterest-bearing deposits in the consolidated balance sheets.

Activity for mortgage servicing rights and the related valuation allowance are as follows:


	2021		2020		2019
Mortgage servicing rights:
Beginning of year	$	7,853	$	10,845	$	10,733
Additions		136		713		2,964
Amortization		(4,657)		(3,705)		(2,852)
End of year		3,332		7,853		10,845
Valuation allowance:
Beginning of year		2,165		1,080		100
Additions (recoveries)		(1,555)		1,085		980
End of year		610		2,165		1,080
Mortgage servicing rights, net	$	2,722	$	5,688	$	9,765

Servicing fee income (loss), net of amortization of servicing rights and changes in the valuation allowance, was $(1,208), $(1,324) and $238 for the year ended December 31, 2021, 2020 and 2019, respectively.

The fair value of mortgage servicing rights was $2,916 and $5,841 at December 31, 2021 and 2020, respectively. The fair value of mortgage servicing rights is highly sensitive to changes in underlying assumptions. Changes in prepayment speed assumptions have the most significant impact on the estimate of the fair value of mortgage servicing rights. The fair value at December 31, 2021 was determined using discount rates ranging from 9.5% to 12.0%, prepayment speeds with a weighted average of 17.6% (depending on the stratification of the specific right), a weighted average life of the mortgage servicing right of 52 months and a weighted average default rate of 0.2%. The fair value at December 31, 2020 was determined using discount rates ranging from 9.5% to 12.0%, prepayment speeds with a weighted average of 22.5% (depending on the stratification of the specific right), a weighted average life of the mortgage servicing right of 43 months and a weighted average default rate of 0.2%.

Impairment is determined by stratifying the mortgage servicing rights into groupings based on predominant risk characteristics, such as interest rate, loan type and investor type. At December 31, 2021 and 2020, the carrying amount of certain individual groupings exceeded their fair value, resulting in write-downs to fair value. Refer to Note 15—Fair Values of Financial Instruments.

- Definition

The entire disclosure for a transferor's continuing involvement in financial assets that it has transferred in a securitization or asset-backed financing arrangement, the nature of any restrictions on assets reported by an entity in its statement of financial position that relate to a transferred financial asset (including the carrying amounts of such assets), how servicing assets and servicing liabilities are reported, and (for securitization or asset-backed financing arrangements accounted for as sales) when a transferor has continuing involvement with the transferred financial assets and transfers of financial assets accounted for as secured borrowings, how the transfer of financial assets affects an entity's financial position, financial performance, and cash flows.

+ References

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+ Details

Deposits

12 Months Ended

Dec. 31, 2021

Deposits

Deposits

Note 7—Deposits

Time deposits, included in interest-bearing deposits, were $891,820 and $1,672,019 at December 31, 2021 and 2020, respectively. Time deposits included brokered deposits of $20,109 and $42,751 at December 31, 2021 and 2020, respectively.

Time deposits that meet or exceed the FDIC insurance limit of $250 were $244,868 and $487,340 at December 31, 2021 and 2020, respectively.

At December 31, 2021, the scheduled maturities of time deposits, including brokered deposits, for the next five years were as follows:


2022	$	646,605
2023		189,541
2024		41,938
2025		11,107
2026		2,629

FHLB Borrowings

12 Months Ended

Dec. 31, 2021

FHLB Borrowings

FHLB Borrowings

Note 8—FHLB Borrowings

FHLB Advances

FHLB advances at December 31, 2021 and 2020 consist of the following:


	December 31,
	2021		Interest Rates		2020		Interest Rates
Long-term fixed-rate FHLB advances	$	150,000	0.43% - 1.96	%	$	318,000	0.43% - 1.96 %

At December 31, 2021, the Company has long-term fixed-rate advances of $150,000 with maturity dates ranging from May 2029 to February 2030. The advances require monthly interest-only payments with the principal amount due on the maturity date and may contain a prepayment penalty if paid before maturity. In the fourth quarter of 2021, the Bank repaid $157,000 in advances, before their maturity date without incurring a prepayment penalty. The remaining advances may be callable by the FHLB as follows: $100,000 in February 2022 and quarterly thereafter until February 2030; and $50,000 in May 2024. At December 31, 2021, the Bank had additional borrowing capacity of $365,465 from the FHLB.

FHLB Overdraft Line of Credit and Letters of Credit

The Bank has established a short-term overdraft line of credit agreement with the FHLB which provided for maximum borrowings of $50,000 through October 2021. The overdraft line of credit was renewed on substantially the same terms and provides for maximum borrowings of $20,000 through October 2022. The average amount outstanding during the year ended December 31, 2021 and 2020 was $7 and $18, respectively. Borrowings accrue interest at a variable rate based on the FHLB’s overnight cost of funds rate, which was 0.43% and 0.46% at December 31, 2021 and 2020, respectively. At December 31, 2021 and 2020, there were no outstanding borrowings under this agreement. The agreement has a one-year term.

In 2021, the Bank entered into irrevocable standby letters of credit arrangements with the FHLB totaling $11,500 to provide credit support for certain of its obligations related to its commitment to repurchase certain pools of Advantage Loan Program loans. An irrevocable standby letter of credit of $7,500 has a 16-month term and expires in July 2022. An irrevocable standby letter of credit of $4,000 has a 36-month term and expires in July 2024. There were no borrowings outstanding on these standby letters of credit during the year ended December 31, 2021.

The long-term fixed-rate advances and the overdraft line of credit are collateralized by certain investment securities and loans. Refer to Note 3—Investment Securities for further information on securities pledged and Note 4—Loans for further information on loans pledged.

Other Borrowings

The Bank had available unsecured credit lines with other banks totaling $80,000 and $100,000 at December 31, 2021 and 2020, respectively. There were no borrowings under these unsecured credit lines during the year ended December 31, 2021 and 2020.

Subordinated Notes, net

12 Months Ended

Dec. 31, 2021

Subordinated Notes, net

Subordinated Notes, net

Note 9—Subordinated Notes, net

The subordinated notes (the “Notes”) were as follows:


	December 31,
	2021		2020
Subordinated notes	$	65,000	$	65,000
Unamortized note premium		343		411
Unamortized debt issuance costs		—		(70)
Total	$	65,343	$	65,341

The Notes bore interest at 7.0% per annum, payable semi-annually on April 15 and October 15 in arrears, through April 2021 after which the Notes have a variable interest rate of the three-month LIBOR rate plus a margin of 5.82%. The interest rate was 5.94% and 7.0% at December 31, 2021 and 2020, respectively. Premiums and debt issuance costs are amortized over the contractual term of the Notes into interest expense using the effective interest method. Interest expense on these Notes was $4,127, $4,713 and $4,701 for the year ended December 31, 2021, 2020 and 2019, respectively. The Notes mature in April 2026.

On or after April 14, 2021, the Company may redeem the Notes, in whole or in part, at an amount equal to 100% of the outstanding principal amount being redeemed plus accrued interest, in a principal amount with integral multiples of $1. There have been no redemptions of the Notes. The Notes are not subject to redemption by the noteholder.

The Notes are unsecured obligations and are subordinated in right of payment to all existing and future indebtedness, deposits and other liabilities of the Company’s current and future subsidiaries, including the Bank’s deposits as well as the Company’s subsidiaries’ liabilities to general creditors and liabilities arising during the ordinary course of business. The Notes may be included in Tier 2 capital for the Company under current regulatory guidelines and interpretations. As long as the Notes are outstanding, the Company is permitted to pay dividends if prior to such dividends, the Bank is considered well capitalized, as defined by regulatory guidelines.

The Company currently may not issue new debt without the prior approval of the FRB.

Shareholders' Equity

12 Months Ended

Dec. 31, 2021

Shareholders' Equity

Shareholders' Equity

Note 10— Shareholders’ Equity

Capital Stock

The Company’s authorized capital stock consists of 10,000,000 shares of preferred stock and 500,000,000 shares of no par common stock.

Preferred Stock

The board of directors is authorized to issue preferred stock from time to time in one or more series, with such designations and such relative voting, dividend, liquidation and other rights, preferences and limitations as may be adopted by the board of directors. No shares of preferred stock are currently issued or outstanding.

No Par Common Stock

Holders of common stock are entitled to one vote per share on all matters submitted to shareholders and entitled to dividends at the sole direction of the board of directors. Dividends declared per common share were $0.01 and $0.04, and dividends paid on common stock were $499 and $2,044 for the year ended December 31, 2020 and 2019, respectively. The holders have no preemptive, conversion or subscription rights, and there is no redemption or sinking fund provisions with respect to such shares. The common stock is subordinate to the series preferred stock as described below with respect to dividend rights or rights upon liquidation, winding up and dissolution of the Company.

In May 2021, the Company issued and sold 300,000 unregistered shares of common stock to its Chief Executive Officer pursuant to the terms of the stock purchase agreement and employment agreement entered into at the time of his employment for cash consideration of $1,350 or $4.50 per share, the fair market value on the date of sale.

Stock Repurchase Program

The board of directors previously approved the repurchase of up to $50,000 of the Company’s outstanding shares of common stock. The stock repurchase program permits the Company to purchase shares of its common stock from time to time in the open market or in privately negotiated transactions. The program does not have an expiration date. Under this program, the Company is not obligated to repurchase shares of its common stock. The repurchased shares will be canceled and returned to authorized but unissued status. As of December 31, 2021, the Company had $19,568 of common stock purchases remaining that may be made under the program.

In March 2020, the Company suspended the stock repurchase program for at least the near term in connection with issues related to the Advantage Loan Program. Refer to Note 19—Commitments and Contingencies for further information regarding the internal review of the Advantage Loan Program. The Company currently may not repurchase any common stock without approval of the FRB.

During the year ended December 31, 2020, the Company repurchased and cancelled 10,912 shares of its common stock for $82, including commissions and fees (average repurchase price of $7.57 per share). During the year ended December 31, 2019, the Company repurchased and cancelled 3,134,806 shares of its common stock for $30,349, including commissions and fees (average repurchase price of $9.68 per share). Such repurchases of common stock were funded through cash generated from operations.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

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+ Details

Stock-based Compensation

12 Months Ended

Dec. 31, 2021

Stock-based Compensation

Stock-based Compensation

Note 11—Stock-based Compensation

The board of directors established the 2020 Omnibus Equity Incentive Plan (the “2020 Plan”), which was approved by the shareholders in December 2020. The 2020 Plan provides for the grant of up to 3,979,661 shares of common stock for stock options, stock appreciation rights, restricted stock, restricted stock units, performance units and performance shares for issuance to employees, consultants and the board of directors of the Company. The stock-based awards are issued at no less than the market price on the date the awards are granted.

Previously, the board of directors had established a 2017 Omnibus Equity Incentive Plan (the “2017 Plan”) which was approved by the shareholders. The 2017 Plan initially provided for the grant of up to 4,237,100 shares of common stock for stock options, stock appreciation rights, restricted stock, restricted stock units and other stock-based awards for issuance to employees, consultants and the board of directors of the Company. The stock-based awards were issued at no less than the market price on the date the awards were granted. Due to the adoption of the 2020 Plan, no further grants will be issued under the 2017 Plan.

Stock Options

Stock option awards are granted with an exercise price equal to the market price of the Company’s common stock on the date of grant. Beginning in 2020, stock option awards vest ratably over three years (one-third per year) after the date of grant, while stock option awards granted prior to 2020 generally vest in installments of 50% in each of the third and fourth year after the date of grant. All stock option awards have a maximum term of ten years.

The board of directors approved the issuance of options to purchase 67,361 and 84,889 shares of common stock to certain key employees which are accounted for as equity awards during the year ended December 31, 2020 and 2019, respectively.

On June 5, 2020, the Company granted its Chief Executive Officer options to purchase 300,000 shares of common stock with an exercise price of $4.00 per share. The stock options vest one-third on January 1, 2021, one-third on the first anniversary of the date of grant and one-third on January 1, 2022. The stock options vest immediately upon the Chief Executive Officer’s termination due to death or disability and upon a change in control event, as defined in his employment agreement. In the event of termination other than for cause, the Chief Executive Officer's then vested stock options will remain exercisable for three years following termination, provided that the Chief Executive Officer remains in compliance with certain terms contained in his employment agreement.

The fair value of each stock option award is estimated on the date of grant using the Black-Scholes option pricing model that uses the assumptions noted below. Estimating the grant date fair values for employee stock options requires management to make assumptions regarding expected volatility of the value of those underlying shares, the risk-free rate over the expected life of the stock options and the date on which share-based payments will be settled. Expected volatilities are based on a weighted average of the Company’s historic volatility and an implied volatility for a group of industry-relevant bank holding companies as of the measurement date. The expected term of options granted is calculated using the simplified method (the midpoint between the end of the vesting period and the end of the maximum term). The risk-free rate for the expected term of the option is based upon the U.S. Treasury yield curve in effect at the time of grant. Expected dividend yield represents what the Company anticipates will be declared during the expected term of the options.

The weighted average grant-date fair value of options issued in 2020 and 2019 was $1.29 and $3.20, respectively. The grant-date fair value of each stock option award was estimated using the Black-Scholes option pricing model that uses the assumptions set forth in the following table:


	Year Ended December 31,
	2020			2019
Risk-free interest rate		0.49	%		2.66	%
Expected term (in years)		5.61			6.75
Expected stock price volatility		33.91	%		26.26	%
Dividend yield		0.10	%		0.40	%

A summary of the Company’s stock option activity as of and for the year ended December 31, 2021 is as follows:


				Weighted
		Weighted		Average
		Average		Remaining	Aggregate
	Number	Exercise		Contractual	Intrinsic
	of Shares	Price		Term	Value
				(Years)
Outstanding at January 1, 2021	377,882	$	5.61	9.09	$	162
Granted	—
Exercised	—
Forfeited/expired	(10,115)		12.62
Outstanding at December 31, 2021	367,767	$	5.41	8.13	$	525
Exercisable at December 31, 2021	226,550	$	4.98	8.22	$	350

The Company recorded stock-based compensation expense associated with stock options of $173, $200 and $137 for the year ended December 31, 2021, 2020 and 2019, respectively. At December 31, 2021, there was $31 of total unrecognized compensation cost related to nonvested stock options which is expected to be recognized over a weighted-average period of 0.83 years.

Restricted Stock Awards

Restricted stock awards are issued to non-employee directors and certain key employees. During the year ended December 31, 2021, the board of directors approved the issuance of 45,000 shares of restricted stock to non-employee independent directors and awarded 207,123 shares of restricted stock to certain key employees. During the year ended December 31, 2020, the board of directors approved the issuance of 151,874 shares of restricted stock to certain key employees. The restricted stock awards generally vest ratably over three years (one-third per year) after the date of grant. The value of a restricted stock award is based on the market value of the Company’s common stock at the date of grant reduced by the present value of dividends per share expected to be paid during the period the shares are not vested. Upon a change in control, as defined in the 2017 Plan and 2020 Plan, the outstanding restricted stock awards will immediately vest.

A summary of the restricted stock awards activity as of and for the year ended December 31, 2021 is as follows:


		Weighted Average
	Number	Grant Date
	of Shares	Fair Value
Nonvested at January 1, 2021	137,936	$	7.90
Granted	252,123		4.99
Vested	(31,906)		7.67
Forfeited	(64,516)		6.14
Nonvested at December 31, 2021	293,637	$	5.81

During the year ended December 31, 2021, the Company withheld 8,536 shares of common stock representing a portion of the restricted stock awards that vested during the period in order to satisfy certain related employee tax withholding liabilities of $46 associated with vesting. These withheld shares are treated the same as repurchased shares for accounting purposes.

The fair value of the award is recorded as compensation expense on a straight-line basis over the vesting period. The Company recorded stock-based compensation expense associated with restricted stock awards of $453, $134 and $360 for the year ended December 31, 2021, 2020 and 2019, respectively. At December 31, 2021, there was $1,096 of total unrecognized compensation cost related to the nonvested stock granted which is expected to be recognized over a weighted-average period of 2.03 years. The total fair value of shares vested during the year ended December 31, 2021 and 2020 was $249 and $100, respectively.

Regulatory Capital Requirements

12 Months Ended

Dec. 31, 2021

Regulatory Capital Requirements

Regulatory Capital Requirements

Note 12—Regulatory Capital Requirements

The Bank is subject to the capital adequacy requirements of the OCC. The Company, as a thrift holding company, is subject to the capital adequacy requirements of the Federal Reserve. Capital adequacy guidelines and prompt corrective action regulations involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Prompt corrective action regulations provide five classifications for depository institutions like the Bank, including well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized, although these terms are not used to represent overall financial condition. Capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weightings and other factors, and the regulators, in their discretion, can require the Company to lower classifications in certain cases. Failure to meet minimum capital requirements can initiate regulatory action that could have a direct material effect on the Company’s business, financial condition and results of operations.

At December 31, 2021 and 2020, the Bank exceeded all capital requirements to be categorized as well capitalized, and the Company exceeded applicable capital adequacy requirements as presented below. The Company’s consolidated and the Bank’s actual and minimum required capital amounts and ratios at December 31, 2021 and 2020 are as follows:


					For Capital
					Adequacy				To be Well
	Actual				Purposes				Capitalized
	Amount		Ratio		Amount		Ratio		Amount		Ratio
December 31, 2021
Total adjusted capital to risk-weighted assets
Consolidated	$	414,870	29.02	%	$	113,951	8.00	%		N/A	N/A
Bank		400,836	28.07			113,868	8.00		$	142,335	10.00	%
Tier 1 (core) capital to risk-weighted assets
Consolidated		344,247	24.08			85,463	6.00			N/A	N/A
Bank		382,509	26.79			85,401	6.00			113,868	8.00
Common Equity Tier 1 (CET1)
Consolidated		344,247	24.08			64,097	4.50			N/A	N/A
Bank		382,509	26.79			64,051	4.50			92,518	6.50
Tier 1 (core) capital to adjusted tangible assets (leverage ratio)
Consolidated		344,247	11.47			120,039	4.00			N/A	N/A
Bank		382,509	12.77			119,859	4.00			149,824	5.00


					For Capital
					Adequacy				To be Well
	Actual				Purposes				Capitalized
	Amount		Ratio		Amount		Ratio		Amount		Ratio
December 31, 2020
Total adjusted capital to risk-weighted assets
Consolidated	$	407,733	22.58	%	$	144,466	8.00	%		N/A	N/A
Bank		386,237	21.56			143,339	8.00		$	179,174	10.00	%
Tier 1 (core) capital to risk-weighted assets
Consolidated		319,204	17.68			108,350	6.00			N/A	N/A
Bank		363,224	20.27			107,504	6.00			143,339	8.00
Common Equity Tier 1 (CET1)
Consolidated		319,204	17.68			81,262	4.50			N/A	N/A
Bank		363,224	20.27			80,628	4.50			116,463	6.50
Tier 1 (core) capital to adjusted tangible assets (leverage ratio)
Consolidated		319,204	8.08			158,067	4.00			N/A	N/A
Bank		363,224	9.20			157,954	4.00			197,442	5.00

Under the Basel III capital rules, both the Company and the Bank must hold a capital conservation buffer ("CCB") consisting of at least 2.5% above the minimum risk-based capital ratios, or 7.0% for common equity Tier 1 (“CET1”) capital ratio, 8.5% for Tier 1 capital ratio and 10.5% for total capital ratio, in order to avoid limitations on capital distributions and discretionary bonus payments to executive officers and similar employees. At December 31, 2021 and 2020, the Company and the Bank’s CET1, Tier 1 and total capital ratios exceed all minimum requirements as well as the levels necessary to be deemed well capitalized and exceed the applicable CCB.

Dividend Restrictions

As noted above, banking regulations require the Bank to maintain certain capital levels and may limit the dividends paid by the bank to the holding company or by the holding company to its shareholders. The Company’s principal source of funds for dividend payments is dividends received from the Bank, and banking regulations limit the dividends that may be paid. Approval by regulatory authorities is required if (i) the total capital distributions for the applicable calendar year exceed the sum of the Bank’s net income for that year to date plus the Bank’s retained net income for the preceding two years or (ii) the Bank would not be at least adequately capitalized following the distribution.

The Qualified Thrift Lender (“QTL”) test requires that a minimum of 65% of assets be maintained in qualified thrift investments, including mortgage loans, housing- and real estate-related finance and other specified areas. If the QTL test is not met, limits are placed on growth, branching, new investments, FHLB advances and dividends, or the Bank must convert to a commercial bank charter. Management believes that the QTL test has been met. Also, pursuant to the terms of the subordinated note agreements, the Company may pay dividends if it is well capitalized as defined by regulatory guidelines.

The Bank is currently required to obtain the prior approval of the OCC in order to pay dividends to the Company due to the existence of a formal agreement with the OCC. Refer to Note 19—Commitments and Contingencies. In addition, the Company currently is required to obtain the prior approval of the FRB in order to pay dividends to the Company’s shareholders.

- Definition

The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union.

+ References + Details

Income (Loss) Per Share

12 Months Ended

Dec. 31, 2021

Income (Loss) Per Share

Income (Loss) Per Share

Note 13—Income (Loss) Per Share

Basic income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted income per common share further includes any common shares available to be issued upon the exercise of outstanding stock options and restricted stock awards if such inclusions would be dilutive. The Company determines the potentially dilutive common shares using the treasury stock method. In periods of a net loss, basic and diluted per share information are the same. The following table presents the computation of income (loss) per share, basic and diluted:


	Year Ended December 31,
	2021		2020		2019
Numerator:
Net income (loss)	$	23,390	$	(12,967)	$	29,248

Denominator:
Weighted average common shares outstanding, basic		50,049,902		49,840,882		51,115,986
Weighted average effect of potentially dilutive common shares:
Stock options		55,060		—		—
Restricted stock		34,348		—		11,893
Weighted average common shares outstanding, diluted		50,139,310		49,840,882		51,127,879

Income (loss) per share:
Basic	$	0.47	$	(0.26)	$	0.57
Diluted	$	0.47	$	(0.26)	$	0.57

The weighted average effect of certain stock options and nonvested restricted stock that were excluded from the computation of weighted average diluted shares outstanding, as inclusion would be anti-dilutive, are summarized as follows:


	Year Ended December 31,
	2021	2020	2019
Stock options	69,546	359,234	167,255
Restricted stock	78,418	166,621	28,676
Total	147,964	525,855	195,931

Employee Benefit Plans

12 Months Ended

Dec. 31, 2021

Employee Benefit Plans

Employee Benefit Plans

Note 14—Employee Benefit Plans

Defined Contribution Retirement Plan

The Bank maintains a defined contribution plan under which, prior to 2021, it made quarterly matching contributions in an amount equal to 100% of the lesser of the first 3% of the employee’s contribution or 3% of the employee’s base salary during such quarter. The employee must have been employed by the Bank on the date the matching contribution was made in order to have received it. In addition, the Bank also could make a contribution of up to 1% of the amount deferred or contributed, based on a tiered scale of its return on assets for the prior year. The matching contributions were made only up to the amount of the employee’s deferrals or contributions to the plan. The Bank also has the discretion to make additional contributions.

In 2021, the Bank amended the defined contribution plan to provide for an annual matching contribution in an amount equal to 100% of the lesser of the first 6% of the employee’s contribution or 6% of the employee’s eligible compensation and also provides that such matching contribution may be made in shares of the Company’s common stock. In this case, an employee’s 401(k) plan account would hold interests in a unitized stock fund instead of a direct interest in the shares of common stock. The employee is not required to be employed by the Bank on the date the matching contribution is made in order to receive it.

The Bank’s contributions to the plan were $935, $256 and $758 for the year ended December 31, 2021, 2020 and 2019, respectively.

Executive Incentive Retirement Plan Agreement

The Bank entered into individual executive incentive retirement plan agreements with six employees. These agreements provided for payments, if payable in accordance with their respective terms and in accordance with applicable law, upon a separation from service or a change of control (as defined in such agreements) if the individual has met specified vesting requirements. Each of these agreements also provided for death benefits in the event of death in active service to the Bank. In 2020, an agreement for a former employee was forfeited in connection with the individual’s termination of service. Under the terms of the remaining agreements, each of the employees was credited an additional amount to such employees’ book-entry incentive award account under the applicable agreement in 2020 based on a monthly crediting formula. The employee may have made an election to receive payments under the employee’s agreement as a lump sum or as an installment. In 2021, two employees who had retired from the Bank were paid in accordance with their respective agreements. Also, an agreement for a former employee was forfeited in connection with the individual’s termination of service. The aggregate liability accrued for potential payments under these agreements was $983 and $3,016 at December 31, 2021 and 2020, respectively. Periodic expense consisted of the Bank’s contribution which was made ratably over the build up period until retirement, adjusted for annual interest cost. The aggregate expense, net of forfeitures, for such agreements was $(470), $(141) and $290 for the year ended December 31, 2021, 2020 and 2019, respectively.

Split Dollar Life Insurance Agreement

The Bank has entered into split dollar life insurance agreements with respect to its controlling shareholder and former Chief Executive Officer of the Bank. Pursuant to the agreements with the Bank, a portion of the death benefits arising from life insurance policies owned by the Bank would be paid to beneficiaries designated by the controlling shareholder. The estimated present value of the cost to the Company of providing these death benefits and the associated accrued liability by the Company was $4,216 and $4,347 at December 31, 2021 and 2020, respectively. Payments of $31 were made to the controlling shareholder and former Chief Executive Officer during 2019, in accordance with the split dollar life insurance agreements.

- Definition

The entire disclosure for retirement benefits.

+ References

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+ Details

Fair Values of Financial Instruments

12 Months Ended

Dec. 31, 2021

Fair Values of Financial Instruments

Fair Values of Financial Instruments

Note 15—Fair Values of Financial Instruments

Financial instruments include assets carried at fair value, as well as certain assets and liabilities carried at cost or amortized cost but disclosed at fair value in these consolidated financial statements. Fair value is defined as the exit price, the price that would be received for an asset or paid to transfer a liability in the most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date under current market conditions. The inputs to valuation techniques used to measure fair value are prioritized into a three-level hierarchy. The hierarchy gives the highest priority to quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows:

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; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

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.

The following methods and significant assumptions are used to estimate fair value:

Investment Securities

The fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar investment securities (Level 2). For investment securities where quoted prices or market prices of similar investment securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). Discounted cash flows are calculated using spread to LIBOR curves that are updated to incorporate loss severities, volatility, credit spread and optionality. During times when trading is more liquid, broker quotes are used (if available) to validate the analysis. Rating agency and industry research reports as well as defaults and deferrals on individual investment securities are reviewed and incorporated into the calculations.

Loans Held for Sale

Loans held for sale are carried at the lower of amortized cost or fair value. Loans held for sale may be carried at fair value on a nonrecurring basis when fair value is less than cost. The fair value is based on outstanding commitments from investors or quoted prices for loans with similar characteristics (Level 2).

Impaired Loans

The fair value of collateral-dependent impaired loans with specific allocations of the allowance for loan losses is generally based on recent real estate appraisals. These appraisals may utilize a single valuation approach, such as comparable sales or the income approach, or a combination of both. 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.

Appraisals for collateral-dependent impaired loans are performed by certified general appraisers whose qualifications and licenses have been reviewed and verified by management. Once received, an appraisal compliance review is completed in accordance with regulatory guidelines.

Mortgage Servicing Rights

Fair value of mortgage servicing rights is initially determined at the individual grouping level based on an internal valuation model that calculates the present value of estimated future net servicing income. On a quarterly basis, mortgage servicing rights are evaluated for impairment based upon third-party valuations obtained. As disclosed in Note 6—Mortgage Servicing Rights, net, the valuation model utilizes interest rate, prepayment speed and default rate assumptions that market participants would use in estimating future net servicing income (Level 3).

Assets Measured at Fair Value on a Recurring Basis

The table below presents the assets measured at fair value on a recurring basis categorized by the level of inputs used in the valuation of each asset at December 31, 2021 and 2020:


			Fair Value Measurements at
			December 31, 2021
			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
			Assets		Inputs		Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Financial Assets
Available-for-sale debt securities:
U.S. Treasury and Agency securities	$	122,168	$	48,827	$	73,341	$	—
Mortgage-backed securities		49,437		—		49,437		—
Collateralized mortgage obligations		136,849		—		136,849		—
Collateralized debt obligations		203		—		—		203
Equity securities		4,976		4,976		—		—


			Fair Value Measurements at
			December 31, 2020
			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
			Assets		Inputs		Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Financial Assets
Available-for-sale debt securities:
U.S. Treasury and Agency securities	$	138,997	$	40,192	$	98,805	$	—
Mortgage-backed securities		33,814		—		33,814		—
Collateralized mortgage obligations		126,596		—		126,596		—
Collateralized debt obligations		187		—		—		187
Equity securities		5,118		5,118		—		—

The table below presents a reconciliation for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the year ended December 31, 2021 and 2020:


	Fair Value Measurements Using Significant
	Unobservable Inputs (Level 3)
	Collateralized Debt Obligations
	2021		2020
Balance of recurring Level 3 assets at beginning of year	$	187	$	199
Total gains or losses (realized/unrealized):
Included in income-realized		—		—
Included in other comprehensive income (loss)		19		(10)
Principal maturities/settlements		(3)		(2)
Sales		—		—
Transfers in and/or out of Level 3		—		—
Balance of recurring Level 3 assets at end of year	$	203	$	187

Unrealized losses on Level 3 investments for collateralized debt obligations were $8 and $27 at December 31, 2021 and 2020, respectively. In addition to the amounts included in income as presented in the table above, interest income recorded on collateralized debt obligations was $5 and $7 for the year ended December 31, 2021 and 2020, respectively.

The fair value of the collateralized debt obligations is obtained from third-party pricing information. It is determined by calculating discounted cash flows using LIBOR curves plus spreads that adjust for credit risk and illiquidity. The Company also performs an internal analysis that considers the structure and term of the collateralized debt obligations and the financial condition of the underlying issuers to corroborate the information used from the independent third party.

Assets Measured at Fair Value on a Nonrecurring Basis

From time to time, the Bank may be required to measure certain other assets at fair value on a nonrecurring basis in accordance with U.S. GAAP. These adjustments to fair value usually result from the application of lower of cost or fair value accounting or write-downs of individual assets. For assets measured at fair value on a nonrecurring basis that were recorded in the consolidated balance sheets at December 31, 2021 and 2020, the following table provides the level of valuation assumptions used to determine each adjustment and the related carrying value:


	Fair Value Measurements at December 31, 2021
			Quoted Prices in		Significant
			Active Markets		Other		Significant
			for Identical		Observable		Unobservable
	Fair		Assets		Inputs		Inputs
	Value		(Level 1)		(Level 2)		(Level 3)
Impaired loans:
Residential real estate	$	86	$	—	$	—	$	86
Commercial real estate loans held for sale		53,628		—		53,628		—
Mortgage servicing rights		2,052		—		—		2,052


	Fair Value Measurements at December 31, 2020
			Quoted Prices in		Significant
			Active Markets		Other		Significant
			for Identical		Observable		Unobservable
	Fair		Assets		Inputs		Inputs
	Value		(Level 1)		(Level 2)		(Level 3)
Impaired loans:
Commercial real estate	$	8,240	$	—	$	—	$	8,240
Construction		5,015		—		—		5,015
Mortgage loans held for sale		19,375		—		19,375		—
Mortgage servicing rights		5,175		—		—		5,175

As discussed above, the fair values of collateral-dependent impaired loans carried at fair value are determined by third-party appraisals. Management adjusts these appraised values based on the age of the appraisal and the type of the property. The following tables present quantitative information about Level 3 fair value measurements at December 31, 2021 and 2020:


	Quantitative Information about Level 3 Fair Value Measurements at December 31, 2021
					Range
	Fair Value		Valuation Technique	Unobservable Inputs	(Weighted Average)⁽¹⁾
Impaired loans:
Residential real estate	$	86	Sales comparison approach	Adjustments for differences between the comparable sales	N/A (15%)
Mortgage servicing rights	$	2,052	Discounted cash flow	Discount rate	9.5% -12.0%
					(11.0)%
				Prepayment speed	10.5% -37.1%
					(19.7)%
				Default rate	0.1% -0.2%
					(0.2)%

(1)The range and weighted average for an asset category consisting of a single investment represents the significant unobservable input used in the fair value of the investment.


	Quantitative Information about Level 3 Fair Value Measurements at December 31, 2020
					Range
	Fair Value		Valuation Technique	Unobservable Inputs	(Weighted Average)⁽¹⁾
Impaired loans:
Commercial real estate	$	8,240	Sales comparison approach/Income capitalization approach	Adjustments for differences between the comparable sales and income data for similar loans and collateral underlying such loans	N/A (36%)
Construction	$	5,015	Hybrid of sales comparison and income capitalization approaches	Adjustments for differences between the comparable sales and income data for similar loans and collateral underlying such loans	N/A (15%)
Mortgage servicing rights	$	5,175	Discounted cash flow	Discount rate	9.5% - 12.0% (11.6)%
				Prepayment speed	10.5% -37.0% (23.7)%
				Default rate	0.1% - 0.2% (0.2)%

(1)	The range and weighted average for an asset category consisting of a single investment represents the significant unobservable input used in the fair value of the investment.

Fair Value of Financial Instruments

The carrying amounts and estimated fair values of financial instruments not carried at fair value at December 31, 2021 and 2020, are as follows:


	Fair Value Measurements at December 31, 2021
	Carrying		Fair
	Amount		Value		Level 1		Level 2		Level 3
Financial Assets
Cash and due from banks	$	411,676	$	411,676	$	411,676	$	—	$	—
Interest-bearing time deposits with other banks		1,183		1,183		1,183		—		—
Mortgage loans held for sale		11,359		11,809		—		11,809		—
Loans, net⁽¹⁾		1,956,180		2,025,409		—		—		2,025,409

Financial Liabilities
Time deposits		891,820		894,049		—		894,049		—
Federal Home Loan Bank borrowings		150,000		152,560		—		152,560		—
Subordinated notes, net		65,343		65,073		—		65,073		—

(1)	Excludes impaired loans measured at fair value on a nonrecurring basis at December 31, 2021.


	Fair Value Measurements at December 31, 2020
	Carrying		Fair
	Amount		Value		Level 1		Level 2		Level 3
Financial Assets
Cash and due from banks	$	998,497	$	998,497	$	998,497	$	—	$	—
Interest-bearing time deposits with other banks		7,021		7,021		7,021		—		—
Mortgage loans held for sale		2,909		3,052		—		3,052		—
Loans, net		2,434,356		2,521,874		—		—		2,521,874
Financial Liabilities
Time deposits⁽¹⁾		1,672,019		1,683,516		—		1,683,516		—
Federal Home Loan Bank borrowings		318,000		328,150		—		328,150		—
Subordinated notes, net		65,341		65,753		—		65,753		—

⁽¹⁾
Time deposits include accrued interest of $25,496 at December 31, 2020 to be consistent with the 2021 presentation.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Income Taxes

12 Months Ended

Dec. 31, 2021

Income Taxes

Income Taxes

Note 16—Income Taxes

The components of the income tax expense (benefit) are as follows:


	Year Ended December 31,
	2021		2020		2019
Current:
Federal	$	4,814	$	4,489	$	15,341
State		1,429		1,908		6,354
Total current expense		6,243		6,397		21,695
Deferred:
Federal		2,088		(8,373)		(3,995)
State		1,312		(3,933)		(2,057)
Total deferred expense (benefit)		3,400		(12,306)		(6,052)
Total income tax expense (benefit)	$	9,643	$	(5,909)	$	15,643

The reconciliation of the U.S. federal statutory tax rate to the Company’s effective tax rate is as follows:


	2021			2020			2019
U.S. federal statutory rate		21.0	%		21.0	%		21.1	%
Effect of:
State taxes, net of federal benefit		6.6	%		8.5	%		4.0	%
Non-deductible items		1.5	%		—	%		9.5	%
Income on cash surrender value of bank-owned life insurance		(0.4)	%		0.6	%		(0.2)	%
Other, net		0.5	%		1.2	%		0.4	%
Effective tax rate		29.2	%		31.3	%		34.8	%

The components of deferred tax assets and liabilities at December 31, 2021 and 2020 comprised the following:


	December 31,
	2021		2020
Deferred tax assets:
Allowance for loan losses	$	15,557	$	20,185
Operating lease liabilities		5,337		5,715
Loans held for sale valuation allowance		2,180		—
Compensation plans		902		531
Accrued expenses		891		378
Interest on nonaccrual loans		833		686
Mortgage repurchase liability		812		2,705
State franchise tax		422		503
Supplemental retirement benefit plan		270		841
Other		709		393
Total deferred tax assets		27,913		31,937
Less: valuation allowance		(30)		—
Total deferred tax assets, net of valuation allowance		27,883		31,937
Deferred tax liabilities:
Operating lease right-of-use asset		(5,003)		(5,363)
Mortgage servicing rights		(749)		(1,586)
Other		(705)		(662)
Total deferred tax liabilities		(6,457)		(7,611)
Deferred tax asset, net	$	21,426	$	24,326

At December 31, 2021, the Company has a capital loss carryforward of $1,006. The capital loss can be carried forward and utilized against capital gains during the carryforward period which expires in December 2025. The Company has recorded a deferred tax asset of $277 reflecting the benefit of the capital loss carryforward.

As of December 31, 2021, a valuation allowance of $30 has been established against the portion of the deferred tax asset that is more likely than not to be realized. Realization of the remaining deferred tax assets is dependent upon the generation of future taxable income. A valuation allowance is provided when it is more likely than not that some portion of the deferred tax assets will not be realized. Management evaluated the deferred tax assets for recoverability by considering negative and positive evidence. Based on the weight of all available evidence, the Company believes it is more likely than not that the deferred tax asset at December 31, 2021 will be realized through the future reversals of existing taxable temporary differences and projected future taxable income.

The Company is subject to U.S. federal income tax as well as income taxes of the state of New York and California. The Company’s federal income tax returns are subject to examination by the Internal Revenue Service for the years after 2017.

There were no unrecognized tax benefits at December 31, 2021, and the Company does not expect the total amount of unrecognized tax benefits to significantly increase in the next twelve months.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI http://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Related Party Transactions

12 Months Ended

Dec. 31, 2021

Related Party Transactions

Related Party Transactions

Note 17—Related Party Transactions

From time to time, the Company had made charitable contributions to a foundation for which certain members of the boards of directors of the Company and Bank, and who are also related to the Company’s controlling shareholders, serve as trustees. The Company paid $375 and $900 to the foundation during the year ended December 31, 2020 and 2019, respectively.

In May 2021, the Company issued and sold unregistered shares of common stock to its Chief Executive Officer in exchange for cash consideration. Refer to Note 10—Shareholders’ Equity.

The Bank had provided monthly data processing and programming services to entities controlled by the Company’s controlling shareholders. Aggregate fees received for such services amounted to $79 and $105 during the year ended December 31, 2020 and 2019, respectively. The Bank terminated such data processing agreement, effective as of November 2020.

Related party leases are disclosed in Note 18—Operating Leases.

Operating Leases

12 Months Ended

Dec. 31, 2021

Operating Leases

Operating Leases

Note 18—Operating Leases

The Company leases its corporate headquarters and branch offices through noncancelable operating lease contracts. Such noncancelable operating lease contracts have remaining terms ranging from 2022 to 2030 and generally have options to extend for one or two five-year periods. The lease term may include options to extend the lease when it is reasonably certain that the option will be exercised based on the facts and circumstances at lease commencement. The lease agreements, most often, provide for rental payments that increase over the lease term based on a fixed percentage or based on a specified consumer price index. Any changes in the consumer price index after the lease commencement date are considered variable lease payments and recorded in the period when incurred. Additionally, the Company, in most cases, is required to pay insurance costs, real estate taxes and other operating expenses such as common area maintenance.

The Company historically has leased certain storage and office space from entities owned by the Company’s controlling shareholders. These leases have been terminated as of December 31, 2020. Amounts paid under such leases totaled $203 and $236 for the year ended December 31, 2020 and 2019, respectively. The Company also subleases certain office space to entities owned by the Company’s controlling shareholders. Amounts received under such subleases totaled $439, $277 and $274 for the year ended December 31, 2021, 2020 and 2019, respectively.

The Company’s operating leases are included in operating lease right-of-use assets and operating lease liabilities in the consolidated balance sheets at December 31, 2021 and 2020. The lessors’ respective rates implicit in these operating leases and subsequent operating leases are generally not available and were not determinable from the terms of the lease. Therefore, the Company uses its incremental borrowing rate in determining the present value of the future lease payments when measuring the operating lease liabilities. The incremental borrowing rates are not observable, and therefore the rates are estimated primarily using observable borrowing rates on the Company’s FHLB advances. The FHLB borrowing rates are generally for over-collateralized advances with varying lengths of maturities. Therefore, the risk-free U.S. government bond rate and high-credit quality unsecured corporate bond rates are also considered in estimating the incremental borrowing rates. The Company’s incremental borrowing rates are developed considering its monthly payment amounts and the initial terms of its leases.

The components of lease expense, which are recorded in non-interest expense – occupancy and equipment, in the consolidated statements of operations for the year ended December 31, 2021, 2020 and 2019 were as follows:


	Year Ended December 31,
	2021		2020		2019
Operating lease costs	$	4,377	$	4,554	$	4,507
Variable lease cost		1,136		959		1,235
Total	$	5,513	$	5,513	$	5,742

Maturities of lease liabilities, including reconciliation to the lease liabilities, based on required contractual payments, were as follows:


Year Ended December 31,
2022	$	4,110
2023		3,899
2024		3,788
2025		3,260
2026		2,491
Thereafter		3,508
Total lease payments		21,056
Less: future interest costs⁽¹⁾		(1,656)
Present value of lease liabilities	$	19,400

(1)	Computed using the estimated interest rate for each lease

Other information related to the lease liabilities as of and for the year ended December 31, 2021, 2020 and 2019 was as follows:


	Year Ended December 31,
Other Information	2021			2020			2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	4,355		$	4,478		$	4,307
Weighted average remaining lease term		5.53	years		6.60	years		6.83	years
Weighted average discount rate		2.94	%		3.16	%		3.54	%

Commitments and Contingencies

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies

Commitments and Contingencies

Note 19—Commitments and Contingencies

Financial Instruments with Off-Balance Sheet Risk

The Bank is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financial needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit, which are not reflected in the consolidated financial statements.

Unfunded Commitments to Extend Credit

A commitment to extend credit, such as a loan commitment, credit line and overdraft protection, is a legally binding agreement to lend funds to a customer, usually at a stated interest rate and for a specific purpose. Such commitments have fixed expiration dates and generally require a fee. The extension of a commitment gives rise to credit risk. The actual liquidity requirements or credit risk that the Bank will experience is expected to be lower than the contractual amount of commitments to extend credit because a significant portion of those commitments are expected to expire without being drawn upon. Certain commitments are subject to loan agreements containing covenants regarding the financial performance of the customer that must be met before the Bank is required to fund the commitment. The Bank uses the same credit policies in making commitments to extend credit as it does in making loans.

The commitments outstanding to make loans include primarily residential real estate loans that are made for a period of 90 days or less. At December 31, 2021, outstanding commitments to make loans consisted of fixed rate loans of $4,029 at interest rates ranging from 2.75% to 3.25% with maturities ranging from 15 to 30 years and variable rate loans of $19,581 at varying interest rates ranging from 3.00% to 3.625% at December 31, 2021 with maturities of 30 years.

Unused Lines of Credit

The Bank also issues unused lines of credit to meet customer financing needs. At December 31, 2021, the unused lines of credit include residential second mortgages of $10,671 and construction loans of $35,134 totaling $45,805. These unused lines of credit are associated with variable rate commitments with interest rates ranging from 3.25% to 7.00% and maturities ranging from 1 month to 24 years.

Standby Letters of Credit

Standby letters of credit are issued on behalf of customers in connection with construction contracts between the customers and third parties. Under standby letters of credit, the Bank assures that the third parties will receive specified funds if customers fail to meet their contractual obligations. The credit risk to the Bank arises from its obligation to make payment in the event of a customer’s contractual default. The maximum amount of potential future payments guaranteed by the Bank is limited to the contractual amount of these letters. Collateral may be obtained at exercise of the commitment. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers.

The following is a summary of the total amount of unfunded commitments to extend credit and standby letters of credit outstanding at December 31, 2021 and 2020:


	2021		2020
Commitments to make loans	$	23,610	$	40,331
Unused lines of credit		45,805		140,665
Standby letters of credit		24		24

Legal Proceedings

The Company and its subsidiaries may be subject to legal actions and claims arising from contracts or other matters from time to time in the ordinary course of business. Management is not aware of any pending or threatened legal proceedings, except as described below, that are considered other than routine legal proceedings. The Company believes that the ultimate disposition or resolution of its routine legal proceedings, in the aggregate, are immaterial to its financial position, results of operations or liquidity.

The Bank is currently under formal investigation by the OCC generally relating to its former residential loan product marketed as the Advantage Loan Program and related matters (the “OCC Investigation”) and continues to be subject to a publicly available formal agreement with the OCC, dated June 18, 2019 (the “OCC Agreement”), relating primarily to certain aspects of its Bank Secrecy Act/Anti-Money Laundering (“BSA/AML”) compliance program as well as the Bank’s credit administration. The OCC Agreement generally requires that the Bank enhance its policies and procedures to ensure compliance with BSA/AML laws and regulations and ensure effective controls over residential loan underwriting. Specifically, the OCC Agreement requires the Bank to: (i) establish a compliance committee to monitor and oversee the Bank’s compliance with the provisions of the OCC Agreement; (ii) develop a revised customer due diligence and enhanced due diligence program; (iii) develop a revised suspicious activity monitoring program; (iv) engage an independent, third-party consultant to review and provide a written report on the Bank’s suspicious activity monitoring; (v) develop revised policies and procedures to ensure effective BSA/AML model risk management for the Bank’s automated suspicious activity monitoring system, which must be validated by a qualified, independent third party; (vi) ensure that the Bank’s BSA Department maintains sufficient personnel; and (vii) develop revised policies and procedures to ensure effective controls over loan underwriting. In addition to these requirements, while the OCC Agreement remains in effect, the Bank is subject to certain restrictions on expansion activities, such as growth through acquisition or branching to supplement organic growth of the Bank. Further, any failure to comply with the requirements of the OCC Agreement could result in further enforcement actions, the imposition of material restrictions on the activities of the Bank, or the assessment of fines or penalties. The Bank established a Compliance Committee to monitor and assure compliance with the OCC Agreement, oversee the completion of an independent review of account and transaction activity to be conducted by a third-party vendor and engage a third party to conduct a model validation for its BSA/AML monitoring software.

The Bank is fully cooperating with the OCC Investigation and implementing the items necessary to achieve compliance with the obligations in the OCC Agreement. A finding by the OCC that the Bank failed to comply with the OCC Agreement or adverse findings in the OCC Investigation could result in additional regulatory scrutiny, constraints on the Bank’s business, or other formal enforcement action. Any of those events could have a material adverse effect on our future operations, financial condition, growth, or other aspects of our business. The Bank has incurred and expects to continue to incur significant costs in its efforts to comply with the OCC Agreement and respond to the OCC Investigation, which are reflected in the Company’s results of operations for the year ended December 31, 2021, 2020 and 2019.

The Bank also has received grand jury subpoenas from the U.S. Department of Justice (the “DOJ”) beginning in 2020 requesting the production of documents and information in connection with an investigation that appears to be focused on the Bank’s Advantage Loan Program and related issues, including residential lending practices and public disclosures about that program contained in the Company’s filings with the SEC. During 2021, the DOJ charged by criminal information the former managing director of residential lending of the Bank and two other former loan officers with conspiracy to commit bank and wire fraud in connection with the Advantage Loan Program, and each individual has pled guilty to that charge. The criminal information and plea agreement with respect to the former managing director of residential lending asserts that the individual acted with the knowledge and encouragement of certain former members of senior management. The Bank is fully cooperating with this ongoing investigation. Adverse findings in the DOJ investigation could result in material losses due to damages, penalties, costs, and/or expenses imposed on the Company, which could have a material adverse effect on the Company’s future operations, financial condition, growth, or other aspects of the business. The Bank has and expects to continue to incur significant costs in its efforts to respond to the DOJ investigation in 2022.

The Company is currently under a formal investigation by the SEC. This investigation appears to be focused on accounting, financial reporting and disclosure matters, as well as the Company’s internal controls, related to the Advantage Loan Program. The Company has received document and information requests from the SEC and is fully cooperating with this investigation. Adverse findings in the SEC investigation could result in material losses due to penalties, disgorgement, costs and/or expenses imposed on the Company, which could have a material adverse effect on the Company’s future operations, financial condition, growth or other aspects of its business. Such adverse findings in any of the aforementioned government investigations could also have collateral consequences for the Company and the Bank, such as creating breaches of representation in certain third-party agreements and loss of eligibility to participate in certain government programs and programs of government sponsored entities.

In addition, the Company, certain of its current and former officers and directors and other parties were named as defendants in a shareholder class action captioned Oklahoma Police Pension and Retirement System v. Sterling Bancorp, Inc., et al., Case No. 5:20-cv-10490-JEL-EAS, filed on February 26, 2020 in the U.S. District Court for the Eastern District of Michigan. On April 16, 2021, the plaintiff, the Company and each of the other defendants entered into the final settlement agreement and submitted it to the court, which granted final approval on September 23, 2021. The final agreement provides for a single $12,500 cash payment in exchange for the release of all of the defendants from all alleged claims. The full amount of the settlement was funded by the Company’s insurance carriers under applicable insurance policies and placed into an escrow account for the benefit of the class and released to members of the class in the fourth quarter of 2021. The Company has no further financial or other obligation in regard to this matter.

In December 2019, the Company announced it had voluntarily suspended its Advantage Loan Program in connection with an internal review of the Advantage Loan Program and related matters (the “ Internal Review”). The primary focus of the Internal Review, which has been led by outside legal counsel under the direction of the Special Committee, has involved the origination of residential real estate loans under the Advantage Loan Program and related matters. Results from the Special Committee’s Internal Review have indicated that certain employees engaged in misconduct in connection with the origination of a significant number of such loans, including with respect to verification of income, the amount of income reported for borrowers, reliance on third parties, and related documentation. As a result, the Company permanently discontinued the Advantage Loan Program. While the Internal Review is substantially complete, the Company expects it to remain open during the pendency of the government investigations discussed herein, and it is possible additional work will be required in connection with the Internal Review.

The Company determined that, in the latter part of the fourth quarter of 2019, it became probable that a loss may be incurred with respect to the above mentioned pending investigations and litigations. Accordingly, at December 31, 2019, the Company established a liability of $25,000 for contingent losses based on additional information obtained during the course of the Internal Review and significant judgments by management. During the fourth quarter of 2020, the Company increased the liability for contingent losses by $2,500. At December 31, 2020, the Company had a liability of $27,500 for contingent losses.

Also, in December 2020, the Company concluded that an insurance recovery related to the contingent loss liability recorded for the class action lawsuit was probable. Therefore, a loss recovery receivable of $12,500 was recorded, in the amount of the total losses previously recorded at December 31, 2020. The loss recovery was recorded in non-interest expense in the statements of operations, which was where the contingent losses were previously recorded in the year ended December 31, 2019. The amount of the corresponding loss recovery receivable reflects the amount of the agreement in principle to settle the class action lawsuit that was ultimately paid by the Company’s insurance carriers in 2021. At December 31, 2021, the Company has a remaining liability of $15,000 for contingent losses.

The outcome of the pending investigations and litigation is uncertain. There can be no assurance (i) that the Company will not incur material losses due to damages, penalties, costs and/or expenses as a result of such investigations and litigation, (ii) that the accrual for contingent losses will be sufficient to cover such losses, or (iii) that such losses will not materially exceed such accrual and have a material impact on the Company’s business, financial condition or results of operations.

In addition, on July 28, 2020, the Company received a demand letter from two law firms representing a purported shareholder of the Company alleging facts and claims substantially the same as many of the alleged facts and claims in the class action lawsuit (the “Shareholder Demand”). The Shareholder Demand requests that the board of directors take action to (1) recover damages the Company has purportedly sustained as a result of alleged breaches of fiduciary duties by certain of its officers and directors; (2) recover for the benefit of the Company the amounts by which certain of its officers and directors purportedly were unjustly enriched; and (3) correct alleged deficiencies in the Company’s internal controls. Following receipt of the Shareholder Demand, the Company’s board of directors established a demand review committee consisting of independent directors, none of whom were named in the Shareholder Demand. During the course of an ongoing investigation conducted by the demand review committee, the demand review committee, on behalf of the Company, engaged in discussions with the opposing counsel resulting in an agreement in the form of a definitive stipulation of settlement. Refer to Note 21—Subsequent Events for further information.

Mortgage Repurchase Liability

During the period 2015 through 2019, the Company sold portfolio loans originated under the Advantage Loan Program to private investors in the secondary market. The Company also sells conventional residential real estate loans (which excludes Advantage Loan Program loans) in the secondary market primarily to Fannie Mae on an ongoing basis. In connection with these loans sold, the Company makes customary representations and warranties about various characteristics of each loan. The Company may be required pursuant to the terms of the applicable mortgage loan purchase and sale agreements to repurchase any previously sold loan or indemnify (make whole) the investor for which the representation or warranty of the Company proves to be inaccurate, incomplete or misleading. In the event of a repurchase, the Company is typically required to pay the unpaid principal balance, the proportionate premium received when selling the loan and certain expenses. As a result, the Company may incur a loss with respect to each repurchased loan.

In 2019, in connection with the above mentioned investigations stemming from the Advantage Loan Program, the Bank recorded a mortgage repurchase liability of $7,823, primarily related to probable losses on the previously sold Advantage Loan Program loan portfolio. The Company determined that these losses became probable in the latter part of the fourth quarter of 2019, taking into account the results of the Internal Review. In 2020, based on further analysis, the Company increased the mortgage repurchase liability by $2,527.

In May 2020, the Company negotiated the repurchases of two pools of Advantage Loan Program loans with a total outstanding unpaid principal balance of $38,704. These loans were previously sold to third-party investors with servicing retained and were evaluated and considered to be performing at the acquisition date. In connection with these repurchases, the Company recognized a loss of $136 related to a fair value discount in other non-interest expense and a disposition of $428 of mortgage servicing rights.

To avoid the uncertainty of audits and inquiries by third-party investors in the Advantage Loan Program, beginning at the end of the second quarter of 2020, the Company commenced making offers to each of those investors to repurchase 100% of the previously sold Advantage Loan Program loans. For the remainder of 2020, certain third-party investors accepted the above mentioned offer, from which the Company repurchased pools of Advantage Loan Program loans previously sold with a total outstanding unpaid principal balance of $30,934. These loans were previously sold to such third-party investors with servicing retained and were evaluated and considered to be performing at the acquisition date. In connection with these repurchases, the Company recognized a loss of $135 related to fair value discount in other non-interest expense, and a disposition of $361 of mortgage servicing rights, and charged a loss of $651 against the mortgage repurchase liability.

In 2021, certain third-party investors accepted the above mentioned offer, from which the Company repurchased pools of Advantage Loan Program loans previously sold with a total outstanding unpaid principal balance of $173,829. These loans were previously sold to such third-party investors with servicing retained and were evaluated and considered to be performing at the acquisition date. In connection with these repurchases, the Company recognized a disposition of $2,381 of mortgage servicing rights and charged a loss of $5,511 against the mortgage repurchase liability. Pursuant to the agreements with such investors, the Company also agreed to repurchase additional pools of Advantage Loan Program loans within the time ranges specified in the following table, with the specific date of repurchase within each range to be determined by the applicable investor. Losses expected to be incurred upon the repurchase of such loans are reflected in the mortgage repurchase liability.


	Outstanding
	Principal Balance at
Repurchase Date Range	December 31, 2021
February 28, 2022 – February 28, 2023	$	15,164
May 21, 2022 – May 21, 2023		13,874
July 25, 2022 – July 25, 2023		17,211
Present – July 22, 2023		26,768
	$	73,017

The Bank's mortgage repurchase liability was $2,954 and $9,699 at December 31, 2021 and 2020, respectively. The repurchase liability is included in accrued expenses and other liabilities in the consolidated balance sheets. The unpaid principal balance of residential real estate loans sold that were subject to potential repurchase obligations for breach of representations and warranties totaled $237,049 and $562,139 at December 31, 2021 and 2020, respectively, including Advantage Loan Program loans totaling $142,810 and $429,816 at December 31, 2021 and 2020, respectively.

The mortgage repurchase liability reflects management's estimate of losses based on a combination of factors. The Company's estimation process requires management to make subjective and complex judgements about matters that are inherently uncertain, such as future repurchase demand expectations, economic factors and findings from the Internal Review. The actual repurchase losses could vary significantly from the recorded mortgage repurchase liability, depending on the outcome of various factors, including those previously discussed.

Activity in the mortgage repurchase liability was as follows:


	Year Ended
	December 31,
	2021		2020
Balance, beginning of period	$	9,699	$	7,823
Net provision (recovery)		(1,234)		2,527
Loss on loan repurchases		(5,511)		(651)
Balance, end of the period	$	2,954	$	9,699

Condensed Financial Information of Sterling Bancorp, Inc. (Parent Only)

12 Months Ended

Dec. 31, 2021

Condensed Financial Information of Sterling Bancorp, Inc. (Parent Only)

Condensed Financial Information of Sterling Bancorp, Inc. (Parent Only)

Note 20—Condensed Financial Information of Sterling Bancorp, Inc. (Parent Only)

Summarized financial information for Sterling Bancorp, Inc. (“Parent”) is shown below. The Parent has no significant operating activities.

CONDENSED BALANCE SHEETS


	December 31,
	2021		2020
ASSETS
Cash held at Bank	$	26,905	$	20,952
Investment in subsidiaries		381,936		363,611
Other assets		1,777		13,914
Total assets	$	410,618	$	398,477
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Subordinated notes, net	$	65,343	$	65,341
Other liabilities		1,648		13,545
Total liabilities		66,991		78,886
Total shareholders’ equity		343,627		319,591
Total liabilities and shareholders’ equity	$	410,618	$	398,477

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)


	Year Ended December 31,
	2021		2020		2019
Expenses:
Interest expense	$	4,127	$	4,713	$	4,700
Provision (recovery) for contingent losses, net		—		(10,000)		10,000
Other		3,574		6,135		803
Total expenses		7,701		848		15,503
Loss before income tax and equity in subsidiaries loss		(7,701)		(848)		(15,503)
Income tax benefit		2,108		246		4,496
Loss before equity in subsidiaries loss		(5,593)		(602)		(11,007)
Equity in subsidiaries income (loss)		28,983		(12,365)		40,255
Net income (loss)	$	23,390	$	(12,967)	$	29,248
Other comprehensive income (loss)
Equity in other comprehensive income (loss) of subsidiaries		(1,284)		191		205
Total comprehensive income (loss)	$	22,106	$	(12,776)	$	29,453

CONDENSED STATEMENTS OF CASH FLOWS


	Year Ended December 31,
	2021		2020		2019
Cash flows from operating activities
Net income (loss)	$	23,390	$	(12,967)	$	29,248
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Equity in subsidiaries (income) loss		(28,983)		12,365		(40,255)
Other		2		162		150
Change in operating assets and liabilities:
Other assets		12,137		(289)		(3,353)
Other liabilities		(11,897)		(7,452)		10,000
Net cash used in operating activities		(5,351)		(8,181)		(4,210)
Cash flows from investing activities
Capital contributed to subsidiary (Bank)		—		(50,000)		—
Dividends received from subsidiaries		10,000		—		19,002
Net cash provided by (used in) investing activities		10,000		(50,000)		19,002
Cash flows from financing activities
Proceeds from issuance of shares of common stock		1,350		—		—
Repurchase of shares of common stock		—		(82)		(30,349)
Repurchase of restricted shares to pay employee tax liability		(46)		—		—
Dividends paid to shareholders		—		(499)		(2,044)
Net cash provided by (used in) financing activities		1,304		(581)		(32,393)
Net increase (decrease) in cash		5,953		(58,762)		(17,601)
Cash held at Bank, beginning of year		20,952		79,714		97,315
Cash held at Bank, end of year	$	26,905	$	20,952	$	79,714
Supplemental cash flows information:
Cash paid for:
Interest	$	4,249	$	4,550	$	4,550

During 2020, the Parent made a capital contribution to the Bank of $50,000. The Parent received cash dividends from its subsidiaries of $10,000 and $19,002 during the year ended December 31, 2021 and 2019, respectively.

Subsequent Events

12 Months Ended

Dec. 31, 2021

Subsequent Events

Subsequent Events

Note 21—Subsequent Events

Legal Proceedings

On January 21, 2022, the Company and the purported shareholder of the Company who made the Shareholder Demand, as disclosed in Note 19, entered into an agreement in the form of a definitive stipulation of settlement (the “Settlement”). Pursuant to the Settlement, the Company has agreed to adopt and implement substantial corporate governance reforms (the “Corporate Governance Enhancements”), many of which have been implemented, and pay attorneys’ fees and expenses in exchange for the release of all defendants from all alleged claims therein. The Corporate Governance Enhancements include, among other things, making certain amendments to both the Company’s Second Amended and Restated Articles of Incorporation and Amended and Restated Bylaws to end the staggered term of the Company’s board of directors, establishing certain board-level and management-level committees and making updates to the Company’s internal policies and practices. The Settlement provides customary releases of certain individuals and entities, including the current board of directors and certain former board members, and reserves for the Company’s board of directors the exclusive right to continue to evaluate and pursue claims against non-released individuals based on their conduct concerning, related to, or arising from the matters raised in the Shareholder Demand. The Settlement remains subject to court approval and other customary conditions. Reimbursement of the plaintiff attorneys’ fees and expenses of $650 due under the Settlement will be paid by the Company’s insurance carriers under applicable insurance policies.

Regulatory Capital Requirements

Subsequent to December 31, 2021, the Company, after consultation with the OCC, determined that a risk-weighting of 100% should be applied to its Advantage Loan Program loans under the risk weighting requirements set forth under the Basel III capital rules for first-lien residential mortgage exposures. Previously, the Bank evaluated each Advantage Loan Program loan individually and not as a homogenous pool of loans. Had the Bank applied the 100% risk weight as of December 31, 2021, the Company's total adjusted capital to risk-weighted assets and Tier 1 (core) capital to risk-weighted assets would have been 21.24% and 17.34%, respectively, and the Bank's total adjusted capital to risk-weighted assets and Tier 1 (core) capital to risk-weighted assets would have been 20.55% and 19.28%, respectively. The Company and the Bank would have been well capitalized and exceeded all capital buffers at December 31, 2021 applying risk-weighting of 100% to its Advantage Loan Program loans.

Sale of Loans Held for Sale

In February 2022, the Company sold substantially all the commercial real estate loans reclassified to loans held for sale to a third party for cash proceeds of $49.4 million.

Summary of Significant Accounting Policies (Policies)	12 Months Ended
Summary of Significant Accounting Policies (Policies)	Dec. 31, 2021
Summary of Significant Accounting Policies
Principles of Consolidation	Principles of Consolidation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include the results of the Company and its wholly-owned subsidiary. On December 21, 2020, QCM, LLC, doing business as Quantum Capital Management, a wholly-owned subsidiary of Quantum Fund, LLC and an indirect wholly-owned subsidiary of the Bank, completed the sale of substantially all of its assets, which consisted primarily of client advisory agreements, for aggregate consideration of $250. The operations of Quantum Capital Management were not significant. All significant intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Due to the inherent uncertainty involved in making estimates, actual results reported in the future periods may be based upon amounts that could differ from those estimates.
Fair Value Measurements	Fair Value Measurements The Bank utilizes fair value measurements to record fair value adjustments to certain assets and liabilities and to determine its fair value disclosures. The determination of fair values of financial instruments often requires the use of estimates. In cases where quoted market values in an active market are not readily available, the Bank uses present value techniques and other valuation methods, as disclosed in Note 15—Fair Values of Financial Instruments, to estimate the fair value of its financial instruments. These valuation methods require considerable judgment, and the resulting estimates of fair value can be significantly affected by the assumptions made and methods used. Debt securities available for sale and equity securities with readily determinable fair values are recorded at fair value on a recurring basis. Additionally, from time to time, the Bank may be required to record other assets and liabilities on a nonrecurring basis, such as impaired loans, other real estate owned, nonmarketable equity securities and certain other assets and liabilities. These nonrecurring fair value adjustments generally involve write-downs of individual assets or application of lower of amortized cost or fair value accounting.
Consolidated Statements of Cash Flows	Consolidated Statements of Cash Flows The Company presents the cash flows from customer loans, deposit transactions and short-term borrowings on a net basis in its consolidated statements of cash flows. Cash flows related to loans are classified within operating and investing activities in the consolidated statements of cash flows based on their initial classification of the loan.
Cash and Due from Banks	Cash and Due from Banks Cash and due from Banks includes cash and time deposits and other deposits held with other banks with original maturities of three months or less.
Interest-bearing Deposits with Other Banks	Interest-bearing Deposits with Other Banks Interest-bearing deposits with other banks, consisting of certificates of deposit, have maturities greater than three months and are carried at cost. Each certificate of deposit is below the FDIC insurance limit of $250. Interest income is recorded when earned.
Concentration of Credit Risk	Concentration of Credit Risk The loan portfolio consists primarily of residential real estate loans, which are collateralized by real estate. At December 31, 2021 and 2020, residential real estate loans accounted for 83% and 81%, respectively, of total gross loans. In addition, most of these residential loans and other commercial loans have been made to individuals and businesses in the state of California, which are dependent on the area economy for their livelihoods and servicing of their loan obligation. At December 31, 2021 and 2020, approximately 85% and 87%, respectively, of gross loans was originated with respect to properties or businesses located in California. Starting December 9, 2019, the Bank suspended its Advantage Loan Program and announced on March 6, 2020 that it permanently discontinued this program. Loans originated under this program comprised a significant component of the Bank’s total loan originations. Advantage Loan Program loans (including residential real estate loans held for sale of $11,359 at December 31, 2021, of which $8,671 were on nonaccrual status, and $19,375 at December 31, 2020, which were on nonaccrual status) totaled $1,185,458 and $1,515,248, or 69% and 74% of gross residential loans, at December 31, 2021 and 2020, respectively. Refer to Note 19—Commitments and Contingencies.
Risks and Uncertainties - COVID-19	Employee Retention Credits Under the CARES Act On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was signed into law providing numerous tax provisions and other stimulus measures, including an employee retention credit (“ERC”), which was a refundable tax credit against certain employment taxes. The Taxpayer Certainty and Disaster Tax Relief Act of 2020 and the American Rescue Plan Act of 2021 extended and expanded the availability of the ERC through the third quarter of 2021. The ERC was equal to 70% of qualified wages paid to employees (including employer qualified health plan expenses) and was capped at $10,000 of qualified wages for each employee, such that the maximum ERC that can be claimed was $7,000 per employee for each of the first three quarters in 2021. As a result of the Company averaging 500 or fewer full-time employees in 2019, all wages paid to employees were eligible for the ERC (rather than just wages paid to employees not providing services). The Company evaluated its eligibility for the ERC in the third quarter of 2021. The Company determined it qualified for the ERC for the first three quarters of 2021 because the Company’s gross receipts (which consisted of total interest income and other fees and income from banking activities and services) decreased more than 20% in 2021 from each of the respective quarters of 2019, the relevant criteria for the ERC. The Company has amended and filed certain payroll tax filings to apply for a refund for each of the first three quarters of 2021. The Company cannot reasonably estimate when it will receive the refunds. Since there is not any U.S. GAAP guidance for for-profit business entities that receive government assistance that is not in the form of a loan, an income tax credit or revenue from a contract with a customer, the Company accounted for the ERC by analogy to International Accounting Standards 20 (“IAS 20”). Under IAS 20, a business entity would recognize the credit on a systematic basis over the periods in which it recognizes the payroll expenses for which the grant (tax credit) is intended to compensate when there is reasonable assurance that the entity will comply with any conditions attached to the grant and the grant will be received. The Company has made an accounting policy election to record the ERC benefit as a reduction to payroll expenses. During the year ended December 31, 2021, the Company recorded a benefit of $6,529 resulting in a net reduction of salaries and employee benefits expense in the consolidated statements of operations. The Company has recorded a grant receivable of $6,529 in other assets in the consolidated balance sheet at December 31, 2021.
Investment Securities	Investment Securities Investment securities includes debt securities and equity securities. Debt Securities Debt securities are classified as either available for sale or held to maturity. Management determines the classification of the debt securities when they are purchased. Debt securities available for sale are stated at fair value, with unrealized gains and losses excluded from income and shown as a separate component of shareholders’ equity in accumulated other comprehensive income (loss), net of tax. Held to maturity securities are carried at amortized cost when management has the positive intent and ability to hold them to maturity. The amortized cost of debt securities classified as held to maturity or available for sale is adjusted for amortization of premiums (noncallable) and accretion of discounts over the contractual life of the investment security using the effective interest method or, in the case of asset-backed securities, over the estimated life of the investment security using the effective yield method. Interest income includes amortization or accretion of purchase premium or discount. Gains and losses on sales are recorded on the settlement date and determined using the specific identification method. Management evaluates debt securities for other-than-temporary impairment at least on a quarterly basis and more frequently when economic or market conditions warrant such an evaluation. In determining other-than-temporary impairment for debt securities, management considers many factors, including: (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, (3) whether the market decline was affected by macroeconomic conditions, and (4) whether the Company has the intent to sell the debt security or more likely than not will be required to sell the debt security before its anticipated recovery. The assessment of whether a decline is other-than-temporary involves a high degree of subjectivity and judgment and is based on the information available to management at a point in time. A charge is recognized against income for all or a portion of the impairment if the loss is determined to be other than temporary. If the Bank intends to sell the debt security or it is more likely than not that the Bank will be required to sell the debt security prior to the recovery of its amortized cost basis, the debt security is written down to fair value, and the full amount of any impairment charge is recorded as a loss in the consolidated statements of operations. If the Bank does not intend to sell the debt security and it is more likely than not that the Bank will not be required to sell the debt security prior to recovery of its amortized cost basis, only the current period credit loss of any impairment of a debt security is recognized in the consolidated statements of operations, with the remaining impairment recorded in other comprehensive income (loss). Equity Securities Equity securities with readily determinable fair values are stated at fair value with unrealized and realized gains and losses reported in income. Those equity securities without readily determinable fair values are recorded at cost, less any impairments, adjusted for subsequent observable price changes in orderly transactions for an identical or similar investment of the same issuer. Any changes in the carrying value of the equity investments are recognized in income. Management performs a qualitative assessment each reporting period to identify impairment of equity securities without readily determinable fair values. When a qualitative assessment indicates that an impairment exists, management determines the fair value of the investment and if the fair value is less than the investment’s carrying value, an impairment charge is recorded in income equal to the difference between the fair value and the carrying amount of the investment.
Loans Held for Sale	Loans Held for Sale The Bank originates certain loans intended for sale in the secondary market. Loans held for sale are carried at the lower of amortized cost or fair value on an individual loan basis. The fair value of loans held for sale are primarily determined based on quoted prices for similar loans in active markets or outstanding commitments from third-party investors. Net unrealized losses, if any, are recorded as a valuation allowance and charged to noninterest income in the consolidated statements of operations. Net gains and losses on loan sales are recorded as a component of non-interest income. Performing residential real estate loans that are held for sale are generally sold with servicing rights retained. Upon the sale of an originated loan, the mortgage servicing right is recorded at its estimated fair value. Loans that are originated and classified as held for investment are periodically sold in order to manage liquidity, asset credit quality, interest rate risk or concentration risk. Loans that are reclassified into loans held for sale from loans held for investment, due to a change in intent, are recorded at the lower of amortized cost or fair value. Any changes in fair value attributable to credit deterioration at the time of transfer are charged against the allowance for loan losses.
Loans	Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at amortized cost, which includes the principal balance outstanding, net of unearned income, including unamortized loan fees and costs on originated loans, and allowances for loan losses. Loan origination fees, net of certain direct loan origination costs, are deferred and amortized over the contractual lives of the respective loans as a yield adjustment using the effective interest method. Other credit-related fees are recognized as fee income, as a component of non-interest income. Interest income on loans is accrued as earned using the interest method over the term of the loan. The accrual of interest income is discontinued at the time the loan is 90 days past due or earlier if conditions warrant (i.e., nonaccrual loan). In all cases, loans are placed on nonaccrual status at an earlier date if collection of principal or interest is considered doubtful. When a loan is placed on nonaccrual status, interest accrued and unpaid during prior periods is reversed. Any payments received on nonaccrual loans are applied to interest income on a cash basis if the loan is considered well secured. Otherwise, all payments received are applied first to outstanding loan principal amounts and then to the recovery of the charged off loan amounts. Any excess is treated as a recovery of interest and fees. Loans are returned to accrual status after all principal and interest amounts contractually due are made and future payments are reasonably assured. Accrued interest receivable related to loans is recorded separately from the amortized cost basis of loans on the Company’s consolidated balance sheets. A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans that have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings, as defined below, and classified as impaired. Factors considered by management in determining if a loan is impaired include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Commercial real estate loans, construction loans and commercial lines of credit are individually evaluated for impairment. If a loan is impaired, a portion of the allowance for loan losses is allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral or operations of collateral. Large groups of homogeneous loans, such as other consumer and residential real estate loans, are collectively evaluated for impairment and accordingly, are not separately identified for impairment disclosures.
Troubled Debt Restructurings	Troubled Debt Restructurings The Bank periodically grants concessions to its customers in an attempt to protect as much of its investment as possible and minimize the risk of loss. Loans that have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings. To determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed as part of the credit underwriting process. Troubled debt restructurings are individually evaluated for impairment and included in the separately identified impairment disclosures. Troubled debt restructurings are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a troubled debt restructuring is considered a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. For loans that are considered troubled debt restructurings that subsequently go into default, the Bank determines the amount of the allowance for loan losses in accordance with the accounting policy for the allowance for loan losses on loans individually identified as impaired.
Allowance for Loan Losses	Allowance for Loan Losses The allowance for loan losses is a valuation allowance for probable incurred credit losses, increased or decreased by the provision for loan losses and decreased by charge offs less recoveries. Loan losses are charged against the allowance for loan losses when a loan is considered partially or fully uncollectible or has such little value that continuance as an asset is not warranted. Subsequent recoveries, if any, are credited to the allowance for loan losses. Management estimates the allowance for loan losses balance using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations, estimated collateral values, economic conditions and other factors. Allocations of the allowance for loan losses may be made for specific loans, but the entire allowance for loan losses is available for any loan that, in management’s judgment, should be charged off. The allowance for loan losses consists of specific and general components. The specific component relates to loans that are individually classified as impaired. The general component covers all other loans and is based on historical loss experience adjusted for general economic conditions and other qualitative factors by portfolio segment. The historical loss experience is determined by portfolio segment, discussed below, and is based on the actual loss history experienced over the most recent three-year period. This actual loss experience is supplemented with economic and other factors based on the risks present for each portfolio segment. These economic and other risk factors include consideration of the following: levels of and trends in delinquencies and impaired loans; levels of and trends in charge offs and recoveries; trends in portfolio volume; effects of any changes in underwriting standards; other changes in lending policies, procedures and practices; experience, ability and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations. The following portfolio segments have been identified: A)Residential Real Estate—The degree of risk in residential real estate lending depends primarily on the loan amount in relation to collateral value, the interest rate and the borrower’s ability to repay in an orderly fashion. Economic trends determined by unemployment rates and other key economic indicators are closely correlated to the credit quality of these loans. Weak economic trends indicate that the borrowers’ capacity to repay their obligations may be deteriorating. The classes in the residential real estate portfolio segment consist of residential first mortgages and residential second mortgages. B)Commercial Real Estate—Adverse economic developments or an overbuilt market may impact commercial real estate projects and may result in troubled loans. Trends in vacancy rates of commercial properties impact the credit quality of these loans. High vacancy rates reduce operating revenues and the ability for the properties to produce sufficient cash flow to service debt obligations. The segmentation classes in the commercial real estate portfolio consist of retail, multifamily, offices, hotels/SROs, industrial and other. C)Construction Loans—The construction loan portfolio is comprised of loans to builders and developers primarily for residential, commercial and mixed-use development. In addition to general commercial real estate risks, construction loans have additional risk of cost overruns, market deterioration during construction, lack of permanent financing and no operating history. There is no further segmentation of the construction portfolio segment into classes. D)Commercial Lines of Credit—The commercial lines of credit portfolio is comprised of loans to businesses such as sole proprietorships, partnerships, limited liability companies and corporations for the daily operating needs of the business. The risk characteristics of these loans vary based on the borrowers’ business and industry as repayment is typically dependent on cash flows generated from the underlying business. These loans may be secured by real estate or other assets or may be unsecured. The segmentation classes in the commercial lines of credit portfolio consist of private banking loans and commercial & industrial (“C&I”) lending. E)Other Consumer—The consumer loan portfolio currently consists only of overdraft protection lines with no further segmentation into classes. Economic trends determined by unemployment rates and other key economic indicators are closely correlated to the credit quality of these loans. Weak economic trends indicate the borrowers’ capacity to repay their obligations may be deteriorating.
Mortgage Servicing Rights, net	Mortgage Servicing Rights, net Servicing assets (mortgage servicing rights) are recognized separately when residential real estate loans are sold with servicing rights retained by the Bank. Mortgage servicing rights are initially recorded at fair value, which is determined based on an internal valuation model that calculates the present value of estimated future net servicing income. The servicing assets are subsequently measured using the amortization method which requires servicing assets to be amortized into non-interest income in the consolidated statements of operations in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal, or a fixed amount per loan, and are recognized as income when earned. The amortization of mortgage servicing rights is netted against loan servicing income. The Bank also records late fees and ancillary fees related to loan servicing which were not material for the periods presented. On a quarterly basis, servicing assets are evaluated for impairment based upon the fair value of the mortgage servicing rights compared to their carrying amount. Impairment is determined by stratifying rights into groupings based on predominant risk characteristics, such as interest rate, loan type and investor type. If the carrying amount of an individual grouping exceeds fair value, impairment is recorded on that grouping so that the servicing asset is carried at fair value. Impairment is recognized through a valuation allowance for an individual grouping. If it is later determined that all or a portion of the impairment no longer exists for a particular grouping, a reduction of the valuation allowance may be recorded as an increase to income. The fair values of servicing assets are subject to significant fluctuations due to changes in estimated and actual prepayment speeds and default rates and losses.
Transfers of Financial Assets	Transfers of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.
FHLB Stock	FHLB Stock The Bank is a member of the FHLB system. Members are required to own a certain amount of stock based on the level of FHLB borrowings and other factors and may invest additional amounts. The FHLB stock is carried at cost, classified as a restricted security and periodically evaluated for impairment based on ultimate recovery of par value. The FHLB stock does not have a readily determinable fair value and no quoted market value as the ownership is restricted to member institutions. Also, the FHLB stock is pledged as collateral on FHLB borrowings. Cash and stock dividends are reported as income in interest and dividends on investment securities and restricted stock in the consolidated statements of operations. Cash dividends received amounted to $609, $847 and $1,219 for the year ended December 31, 2021, 2020 and 2019, respectively.
Cash Surrender Value of Bank-Owned Life Insurance	Cash Surrender Value of Bank-Owned Life Insurance The Bank has purchased life insurance policies on certain officers and employees. In addition, the Bank still owns policies on retired and former employees. Cash surrender value of bank-owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement.
Long-Lived Assets	Long-Lived Assets Long-lived assets, such as leasehold improvements and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require long-lived assets or asset groups to be tested for possible impairment, the Company compares the undiscounted cash flows expected to be generated by that asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment charge is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques, such as discounted cash flow models and third-party independent appraisals.
Mortgage Repurchase Liability	Mortgage Repurchase Liability In connection with portfolio loans sold in the secondary market, the Company makes customary representations and warranties about certain characteristics of each loan. The Company establishes a liability which may result from breaches in such representations and warranties. The mortgage repurchase liability reflects management’s estimate of such losses based on a combination of factors. The Company’s estimation process requires management to make subjective and complex judgments about matters that are inherently uncertain, such as expectations of future repurchase demands, economic factors, and findings from the Internal Review discussed in Note 19—Commitments and Contingencies. The actual loss on repurchases could vary significantly from the recorded repurchase liability, depending on the outcome of various factors. Any loss on the repurchase of the Advantage Loan Program loans by the Company is charged against the mortgage repurchase liability, which is included in accrued expenses and other liabilities. The disposition of the mortgage servicing rights related to servicing the respective loans (as mortgage servicing of these loans was retained at the time of sale) is recorded in net servicing income (loss) in non-interest income in the consolidated statements of operations. The Advantage Loan Program loans that have been repurchased are then included in loans held for investment.
Legal Contingencies and Litigation Accruals	Legal Contingencies and Litigation Accruals The Company is involved in several material legal proceedings, as disclosed in Note 19—Commitments and Contingencies. On a quarterly basis, management assesses potential losses in relation to these and other pending or threatened legal matters. If a loss is considered probable and the amount can be reasonably estimated, the Company recognizes an expense for the estimated loss. Estimates of any such loss are subjective in nature and require the evaluation of numerous facts and assumptions as to future events, including the application of legal precedent that may be conflicting. To the extent these estimates are more or less than the actual liability resulting from the resolution of these matters, the Company’s net income (loss) will be increased or decreased accordingly. If the differences are material, the Company’s consolidated financial statements could be materially impacted.
Revenue from Contracts with Customers	Revenue from Contracts with Customers In accordance with ASC 606, Revenue from Contracts with Customers, the Company recognizes revenue when control of promised goods or services is transferred to customers in an amount that reflects the consideration the Company expects to be entitled to receive in exchange for those goods or services as performance obligations are satisfied. The majority of the Company’s revenues are from interest income and other sources, including loans and investment securities, as well as fees related to mortgage servicing activities, which are not within the scope of ASC 606 and are instead subject to other accounting guidance. The Company’s services that are within the scope of ASC 606 are recorded within non-interest income, which includes investment management and advisory fees, service charges on deposit accounts, interchange income and other service charges and fees. Descriptions of these activities that are within the scope of ASC 606, which are presented in the consolidated statements of operations as components of non-interest income, are as follows: Service charges on deposit accounts: The Bank earns fees from its deposit customers for transaction-based, account maintenance and overdraft services. Transaction-based fees, which include services such as ATM use fees, stop payment charges, statement rendering and ACH fees, are recognized at the time the transaction is executed as that is the point in time the Bank fulfills the customer’s request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Bank satisfies the performance obligations. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposit accounts are withdrawn from the customer’s account balance. Investment management and advisory fees: Before December 2020, the Bank entered into contracts with certain customers to provide asset management services that continued indefinitely unless terminated in writing by either party to the contract. The Bank received a quarterly management fee, payable in advance, based on the customer’s assets held under management at the beginning of the period. These fees were earned over time as the Bank provided the contracted services and were assessed based on a tiered rate applied to the market value of assets held under management. The Bank did not earn performance-based incentives. Interchange fees: The Bank earns interchange fees from debit cardholder transactions conducted through the MasterCard payment network. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder. Such interchange activity is shown on a net basis through non-interest income, other income. Other service charges and fees: Other charges and fees includes revenue generated from wire transfers, lockboxes and bank issuance of checks. Such fees are recognized at the point in time the customer requests the service and the service is rendered.
Stock-based Compensation	Stock-based Compensation Compensation cost is recognized for stock options and restricted stock awards issued to employees and non-employee members of the Company’s board of directors, based on the fair value of these awards at the date of grant. The fair value of stock options is estimated using a Black-Scholes option pricing model, and the fair value of restricted stock awards is based on the market price of the Company’s common stock at the date of grant reduced by the present value of dividends per share expected to be paid during the period the shares are not vested. Compensation cost is recorded over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recorded on a straight-line basis over the requisite service period of the entire award. The Company’s accounting policy is to record forfeitures in the period that they occur.
Comprehensive Income	Comprehensive Income Comprehensive income consists of net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on debt securities available for sale, net of income taxes, which is also recognized as a separate component of shareholders’ equity. The Company releases the income tax effects on unrealized gains and losses on debt securities available for sale that are reported in other comprehensive income (loss) on a security-by-security basis when debt securities are sold.
Loan Commitments and Related Financial Instruments	Loan Commitments and Related Financial Instruments Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded.
Assets Held under Administration and Investment Management and Advisory Fees	Assets Held under Administration and Investment Management and Advisory Fees The Company does not include assets held in fiduciary or agency capacities in the consolidated balance sheets, as such assets held under administration are not assets of the Company. Fees from asset management activities were recorded on an accrual basis over the period in which the service was provided. Fees, as set forth in the underlying customer contract, are a function of the market value of assets administrated and managed. Effective December 21, 2020, the Bank no longer offers asset management services.
Income Taxes	Income Taxes Income taxes are provided for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred taxes of a change in tax rates is recognized in income in the period the change occurs. Deferred tax assets are reduced, through a valuation allowance, if necessary, by the amount of such benefits that are not expected to be realized based on current available evidence. A tax position is recognized as a benefit only if it is more likely than not that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the more likely than not test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense.
Income (Loss) per Share, Basic and Diluted	Income (Loss) per Share, Basic and Diluted Basic income (loss) per share represents net income (loss) divided by the weighted average number of common shares outstanding during the period. In periods of income, diluted income per share represents net income divided by the weighted average number of common shares outstanding during the period, plus the effect of outstanding potential dilutive common shares. In periods of a net loss, basic and diluted per share information are the same.
Recently Issued Accounting Guidance Not Yet Adopted	Recently Issued Accounting Guidance Not Yet Adopted In June 2016, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which is intended to improve financial reporting by requiring recording of credit losses on loans and other financial instruments on a more timely basis. The guidance will replace the current incurred loss accounting model with an expected loss approach and requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The guidance requires enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. In April 2019, the FASB issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, which clarifies the scope of the credit losses standard and addresses issues related to accrued interest receivable balances and recoveries, among other things. In May 2019, the FASB issued ASU No. 2019-05, Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief. The amendments provide entities with an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis, upon adoption of Topic 326. In November 2019, the FASB issued ASU No. 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates. This update deferred the effective dates of Topic 326 to January 1, 2023 for certain entities including smaller reporting companies as defined by the U.S. Securities and Exchange Commission (the “SEC”). The Company, as a smaller reporting company as of the relevant measuring period, qualifies for this extension. At this time, a cross-functional implementation team consisting of individuals from accounting, finance, servicing and information systems is working with the Bank’s loan system vendor, and they have developed an application to create credit loss estimation models and processes. The historical data set for model development has been finalized, and the credit loss estimation models have been developed and tested. Once the credit loss estimation models are finalized, the Bank will run the new credit loss estimation models in parallel with the current allowance for loan losses model to understand the differences in the models and assess the impact of the change. The Company expects to recognize a cumulative effect adjustment to the opening balance of retained earnings as of January 1, 2023, the beginning of the first reporting period in which ASU No. 2016-13 is effective. The Company has not yet determined the magnitude of any such one-time cumulative adjustment or of the overall impact of ASU No. 2016-13 on its consolidated financial statements.
Reclassification	Reclassifications Certain prior period amounts have been reclassified to conform with the current period presentation. The Company has reclassified custodial escrow balances maintained with serviced loans of $6,051 from accrued expenses and other liabilities to noninterest-bearing deposits and reclassified accrued interest of $25,496 on time deposits from accrued expenses and other liabilities to interest-bearing deposits in the consolidated balance sheet at December 31, 2020.

Investment Securities (Tables)

12 Months Ended

Dec. 31, 2021

Investment Securities

Schedule of amortized cost and fair value of debt securities available for sale


	December 31, 2021
	Amortized		Gross Unrealized				Fair
	Cost		Gain		Loss		Value
Available for sale:
U.S. Treasury and Agency securities	$	122,291	$	106	$	(229)	$	122,168
Mortgage-backed securities		49,739		84		(386)		49,437
Collateralized mortgage obligations		137,662		530		(1,343)		136,849
Collateralized debt obligations		211		—		(8)		203
Total	$	309,903	$	720	$	(1,966)	$	308,657


	December 31, 2020
	Amortized		Gross Unrealized				Fair
	Cost		Gain		Loss		Value
Available for sale:
U.S. Treasury and Agency securities	$	138,742	$	255	$	—	$	138,997
Mortgage-backed securities		33,743		72		(1)		33,814
Collateralized mortgage obligations		126,359		628		(391)		126,596
Collateralized debt obligations		214		—		(27)		187
Total	$	299,058	$	955	$	(419)	$	299,594

Schedule of information pertaining to sales of debt securities available for sale


	2021		2020		2019
Proceeds	$	—	$	99,971	$	2,914

Gross realized gains	$	—	$	337	$	6
Gross realized losses		—		(158)		—
Total net realized gains	$	—	$	179	$	6

Schedule of amortized cost and fair value of debt securities available for sale, shown by contractual maturity


	Amortized		Fair
	Cost		Value
U.S. Treasury and Agency securities:
Due less than one year	$	50,313	$	50,306
Due after one year through five years		71,978		71,862
Mortgage-backed securities		49,739		49,437
Collateralized mortgage obligations		137,662		136,849
Collateralized debt obligations		211		203
Total	$	309,903	$	308,657

Schedule of debt securities available for sale, at fair value, continuous unrealized losses position


	December 31, 2021
	Less than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
U.S. Treasury and Agency securities	$	49,865	$	(229)	$	—	$	—	$	49,865	$	(229)
Mortgage-backed securities		7,878		(36)		8,729		(350)		16,607		(386)
Collateralized mortgage obligations		86,354		(1,342)		2,413		(1)		88,767		(1,343)
Collateralized debt obligations		—		—		203		(8)		203		(8)
Total	$	144,097	$	(1,607)	$	11,345	$	(359)	$	155,442	$	(1,966)


	December 31, 2020
	Less than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
Mortgage-backed securities	$	5,694	$	(1)	$	—	$	—	$	5,694	$	(1)
Collateralized mortgage obligations		75,740		(391)		—		—		75,740		(391)
Collateralized debt obligations		—		—		187		(27)		187		(27)
Total	$	81,434	$	(392)	$	187	$	(27)	$	81,621	$	(419)

Schedule of equity securities with readily determinable fair values


	Year Ended
	December 31,
	2021		2020		2019
Net gains (losses) recorded during the period on equity securities	$	(142)	$	108	$	114
Less: net gains (losses) recorded during the period on equity securities sold during the period		—		—		—
Unrealized gains (losses) recorded during the period on equity securities held at the reporting date	$	(142)	$	108	$	114

Loans (Tables)

12 Months Ended

Dec. 31, 2021

Loans

Schedule of major categories of loans

The major categories of loans held for sale were as follows:


	December 31,
	2021		2020
Residential real estate	$	11,359	$	22,284
Commercial real estate		53,628		—
Total loans held for sale	$	64,987	$	22,284

The major categories of loans held for investment and the allowance for loan losses were as follows:


	December 31,
	2021		2020
Residential real estate	$	1,704,231	$	2,033,526
Commercial real estate		201,240		259,958
Construction		106,759		206,581
Commercial lines of credit		363		6,671
Other consumer		221		7
Total loans		2,012,814		2,506,743
Less: allowance for loan losses		(56,548)		(72,387)
Loans, net	$	1,956,266	$	2,434,356

Schedule of activity in allowance for loan losses and recorded investment by portfolio segment

The following tables present the activity in the allowance for loan losses by portfolio segment for the year ended December 31, 2021, 2020 and 2019:


							Commercial
	Residential		Commercial				Lines of		Other
December 31, 2021	Real Estate		Real Estate		Construction		Credit		Consumer		Unallocated		Total
Allowance for loan losses:
Beginning balance	$	32,366	$	21,942	$	17,988	$	91	$	—	$	—	$	72,387
Provision (recovery) for loan losses		(1,578)		(2,052)		(4,552)		(83)		—		—		(8,265)
Charge offs		—		(7,921)		(1,965)		—		—		—		(9,886)
Recoveries		1,414		639		259		—		—		—		2,312
Total ending balance	$	32,202	$	12,608	$	11,730	$	8	$	—	$	—	$	56,548

							Commercial
	Residential		Commercial				Lines of		Other
December 31, 2020	Real Estate		Real Estate		Construction		Credit		Consumer		Unallocated		Total
Allowance for loan losses:
Beginning balance	$	12,336	$	5,243	$	3,822	$	328	$	1	$	—	$	21,730
Provision (recovery) for loan losses		23,604		16,634		14,866		(237)		(2)		—		54,865
Charge offs		(3,594)		—		(707)		—		—		—		(4,301)
Recoveries		20		65		7		—		1		—		93
Total ending balance	$	32,366	$	21,942	$	17,988	$	91	$	—	$	—	$	72,387

							Commercial
	Residential		Commercial				Lines of		Other
December 31, 2019	Real Estate		Real Estate		Construction		Credit		Consumer		Unallocated		Total
Allowance for loan losses:
Beginning balance	$	13,826	$	2,573	$	3,273	$	1,058	$	1	$	1,119	$	21,850
Provision (recovery) for loan losses		(1,511)		2,509		542		(554)		—		(1,119)		(133)
Charge offs		—		—		—		(176)		—		—		(176)
Recoveries		21		161		7		—		—		—		189
Total ending balance	$	12,336	$	5,243	$	3,822	$	328	$	1	$	—	$	21,730

The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment by impairment methodology as of December 31, 2021 and 2020:


							Commercial
	Residential		Commercial				Lines of		Other
December 31, 2021	Real Estate		Real Estate		Construction		Credit		Consumer		Unallocated		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	159	$	—	$	—	$	—	$	—	$	—	$	159
Collectively evaluated for impairment		32,043		12,608		11,730		8		—		—		56,389
Total ending allowance balance	$	32,202	$	12,608	$	11,730	$	8	$	—	$	—	$	56,548
Loans:
Loans individually evaluated for impairment	$	350	$	4,441	$	14,984	$	116	$	—	$	—	$	19,891
Loans collectively evaluated for impairment		1,703,881		196,799		91,775		247		221		—		1,992,923
Total ending loans balance	$	1,704,231	$	201,240	$	106,759	$	363	$	221	$	—	$	2,012,814


							Commercial
	Residential		Commercial				Lines of		Other
December 31, 2020	Real Estate		Real Estate		Construction		Credit		Consumer		Unallocated		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	41	$	287	$	1,905	$	4	$	—	$	—	$	2,237
Collectively evaluated for impairment		32,325		21,655		16,083		87		—		—		70,150
Total ending allowance balance	$	32,366	$	21,942	$	17,988	$	91	$	—	$	—	$	72,387
Loans:
Loans individually evaluated for impairment	$	208	$	20,974	$	48,871	$	3,981	$	—	$	—	$	74,034
Loans collectively evaluated for impairment		2,033,318		238,984		157,710		2,690		7		—		2,432,709
Total ending loans balance	$	2,033,526	$	259,958	$	206,581	$	6,671	$	7	$	—	$	2,506,743

Schedule of information related to impaired loans by class of loans


	At December 31, 2021						Year Ended December 31, 2021
	Unpaid						Average		Interest		Cash Basis
	Principal		Recorded		Allowance for		Recorded		Income		Interest
	Balance		Investment		Loan Losses		Investment		Recognized		Recognized
With no related allowance for loan losses recorded:
Residential real estate, first mortgage	$	91	$	65	$	—	$	79	$	—	$	—
Commercial real estate:
Retail		—		—		—		612		—		—
Hotels/Single-room occupancy hotels		4,459		4,441		—		14,370		—		—
Office		—		—		—		1,846		—		—
Other		—		—		—		68		—		—
Construction		15,004		14,984		—		30,239		231		218
Commercial lines of credit:
Private banking		116		116		—		1,034		8		8
Subtotal		19,670		19,606		—		48,248		239		226
With an allowance for loan losses recorded:
Residential real estate, first mortgage		273		285		159		281		3		3
Construction		—		—		—		2,541		219		200
Subtotal		273		285		159		2,822		222		203
Total	$	19,943	$	19,891	$	159	$	51,070	$	461	$	429


	At December 31, 2020						Year Ended December 31, 2020
	Unpaid						Average		Interest		Cash Basis
	Principal		Recorded		Allowance for		Recorded		Income		Interest
	Balance		Investment		Loan Losses		Investment		Recognized		Recognized
With no related allowance for loan losses recorded:
Residential real estate, first mortgage	$	116	$	94	$	—	$	96	$	—	$	—
Commercial real estate:
Retail		1,247		1,029		—		1,065		58		48
Hotels/Single-room occupancy hotels		11,428		11,419		—		5,221		—		—
Construction		42,669		41,951		—		29,395		964		744
Commercial lines of credit:
Private banking		—		—		—		1,505		42		35
C&I lending		3,857		3,857		—		1,184		—		—
Subtotal		59,317		58,350		—		38,466		1,064		827
With an allowance for loan losses recorded:
Residential real estate, first mortgage		114		114		41		116		5		4
Commercial real estate, hotels/single-room occupancy hotels		8,645		8,526		287		3,858		—		—
Construction		6,920		6,920		1,905		6,189		255		226
Commercial lines of credit, private banking		124		124		4		128		7		6
Subtotal		15,803		15,684		2,237		10,291		267		236
Total	$	75,120	$	74,034	$	2,237	$	48,757	$	1,331	$	1,063


	At December 31, 2019						Year Ended December 31, 2019
	Unpaid						Average		Interest		Cash Basis
	Principal		Recorded		Allowance for		Recorded		Income		Interest
	Balance		Investment		Loan Losses		Investment		Recognized		Recognized
With no related allowance for loan losses recorded:
Residential real estate, first mortgage	$	125	$	98	$	—	$	104	$	—	$	—
Commercial real estate:
Retail		1,308		1,100		—		1,136		60		55
Multifamily		—		—		—		449		12		12
Office		—		—		—		378		25		25
Construction		17,156		17,112		—		6,682		582		575
Commercial lines of credit:
Private banking		1,245		1,245		—		—		—		—
C&I lending		—		—		—		67		5		5
Subtotal		19,834		19,555		—		8,816		684		672
With an allowance for loan losses recorded:
Residential real estate, first mortgage		116		117		43		118		5		5
Commercial lines of credit, private banking		132		132		5		136		7		7
Subtotal		248		249		48		254		12		12
Total	$	20,082	$	19,804	$	48	$	9,070	$	696	$	684

Schedule of recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans and aging of the recorded investment in past due loans


	At December 31,
	2021				2020
			Loans Past				Loans Past
			Due Over 90				Due Over 90
			Days Still				Days Still
	Nonaccrual		Accruing		Nonaccrual		Accruing
Residential real estate:
Residential first mortgage	$	45,439	$	39	$	20,043	$	46
Residential second mortgage		236		—		686		—
Commercial real estate:
Retail		—		—		20		—
Hotels/Single-room occupancy hotels		4,441		—		19,945		—
Construction		12,499		—		41,873		—
Commercial lines of credit:
Private banking		—		—		2,285		—
C&I lending		—		—		1,572		—
Total	$	62,615	$	39	$	86,424	$	46

The following tables present the aging of the recorded investment in past due loans as of December 31, 2021 and 2020 by class of loans:


	30 ‑ 59		60 ‑ 89		Greater than
	Days		Days		89 Days		Total		Loans Not
December 31, 2021	Past Due		Past Due		Past Due		Past Due		Past Due		Total
Residential real estate:
Residential first mortgage	$	24,044	$	3,425	$	45,478	$	72,947	$	1,617,509	$	1,690,456
Residential second mortgage		107		—		236		343		13,432		13,775
Commercial real estate:
Retail		—		—		—		—		19,574		19,574
Multifamily		—		—		—		—		96,960		96,960
Office		—		—		—		—		12,382		12,382
Hotels/Single-room occupancy hotels		—		—		4,441		4,441		9,780		14,221
Industrial		—		—		—		—		7,320		7,320
Other		—		—		—		—		50,783		50,783
Construction		10,500		—		12,499		22,999		83,760		106,759
Commercial lines of credit:
Private banking		—		—		—		—		116		116
C&I lending		—		—		—		—		247		247
Other consumer		—		—		—		—		221		221
Total	$	34,651	$	3,425	$	62,654	$	100,730	$	1,912,084	$	2,012,814


	30 ‑ 59		60 ‑ 89		Greater than
	Days		Days		89 Days		Total		Loans Not
December 31, 2020	Past Due		Past Due		Past Due		Past Due		Past Due		Total
Residential real estate:
Residential first mortgage	$	37,819	$	14,524	$	20,089	$	72,432	$	1,943,602	$	2,016,034
Residential second mortgage		362		134		686		1,182		16,310		17,492
Commercial real estate:
Retail		1,010		—		20		1,030		15,170		16,200
Multifamily		3,835		—		—		3,835		75,374		79,209
Office		—		—		—		—		27,061		27,061
Hotels/Single-room occupancy hotels		—		—		19,945		19,945		47,690		67,635
Industrial		—		—		—		—		13,186		13,186
Other		—		—		—		—		56,667		56,667
Construction		8,593		2,514		41,873		52,980		153,601		206,581
Commercial lines of credit:
Private banking		—		—		2,285		2,285		124		2,409
C&I lending		—		—		1,572		1,572		2,690		4,262
Other consumer		—		—		—		—		7		7
Total	$	51,619	$	17,172	$	86,470	$	155,261	$	2,351,482	$	2,506,743

Schedule of troubled debt restructurings


	At December 31,
	2021				2020
	Recorded		Allowance for		Recorded		Allowance for
	Investment		Loan Losses		Investment		Loan Losses
Residential real estate, first mortgage	$	181	$	39	$	209	$	41
Commercial real estate:
Retail		—		—		1,029		—
Hotels/Single-room occupancy hotels⁽¹⁾		4,441		—		—		—
Construction		13,678		—		26,985		1,906
Commercial lines of credit, private banking		116		—		124		4
Total	$	18,416	$	39	$	28,347	$	1,951

(1)	The recorded investment included in Hotels/Single-room occupancy hotels was in Construction loans at December 31, 2020.

Schedule of risk rating of loans by class of loans


			Special
December 31, 2021	Pass		Mention		Substandard		Doubtful		Total
Residential real estate:
Residential first mortgage	$	1,644,974	$	—	$	45,249	$	233	$	1,690,456
Residential second mortgage		13,539		—		236		—		13,775
Commercial real estate:
Retail		18,846		728		—		—		19,574
Multifamily		75,543		8,104		13,313		—		96,960
Office		10,413		—		1,969		—		12,382
Hotels/Single-room occupancy hotels		8,205		—		6,016		—		14,221
Industrial		7,320		—		—		—		7,320
Other		48,996		1,692		95		—		50,783
Construction		67,254		17,226		16,348		5,931		106,759
Commercial lines of credit:
Private banking		116		—		—		—		116
C&I lending		236		11		—		—		247
Other consumer		221		—		—		—		221
Total	$	1,895,663	$	27,761	$	83,226	$	6,164	$	2,012,814


			Special
December 31, 2020	Pass		Mention		Substandard		Doubtful		Total
Residential real estate:
Residential first mortgage	$	1,995,945	$	—	$	19,995	$	94	$	2,016,034
Residential second mortgage		16,806		—		686		—		17,492
Commercial real estate:
Retail		13,599		1,572		1,029		—		16,200
Multifamily		55,772		14,238		9,199		—		79,209
Office		12,014		1,623		13,424		—		27,061
Hotels/Single-room occupancy hotels		9,115		17,984		40,536		—		67,635
Industrial		5,867		—		7,319		—		13,186
Other		43,193		7,732		5,742		—		56,667
Construction		152,577		14,234		32,850		6,920		206,581
Commercial lines of credit:
Private banking		124		2,285		—		—		2,409
C&I lending		3,573		—		689		—		4,262
Other consumer		7		—		—		—		7
Total	$	2,308,592	$	59,668	$	131,469	$	7,014	$	2,506,743

Leasehold Improvements and Equipment, net (Tables)

12 Months Ended

Dec. 31, 2021

Leasehold Improvements and Equipment, net

Schedule of leasehold improvements and equipment, net


	Estimated
	Useful
	Life
	(in years)	2021		2020
Leasehold improvements	*	$	11,527	$	11,259
Furniture and equipment	3 ‑ 7		14,568		14,361
Total			26,095		25,620
Less: accumulated depreciation and amortization			(18,674)		(17,108)
Leasehold improvements and equipment, net		$	7,421	$	8,512

* Amortized over the shorter of the lease term or estimated useful life

Mortgage Servicing Rights, net (Tables)

12 Months Ended

Dec. 31, 2021

Mortgage Servicing Rights, net

Schedule of principal balance of mortgage loans serviced for others


	2021		2020
Residential real estate mortgage loan portfolios serviced for:
FNMA	$	124,764	$	171,553
FHLB		40,209		64,661
Private investors		142,810		429,816
Total	$	307,783	$	666,030

Schedule of activity for mortgage servicing rights and related valuation allowance


	2021		2020		2019
Mortgage servicing rights:
Beginning of year	$	7,853	$	10,845	$	10,733
Additions		136		713		2,964
Amortization		(4,657)		(3,705)		(2,852)
End of year		3,332		7,853		10,845
Valuation allowance:
Beginning of year		2,165		1,080		100
Additions (recoveries)		(1,555)		1,085		980
End of year		610		2,165		1,080
Mortgage servicing rights, net	$	2,722	$	5,688	$	9,765

Deposits (Tables)

12 Months Ended

Dec. 31, 2021

Deposits

Schedule of maturities of time deposits, including brokered deposits

At December 31, 2021, the scheduled maturities of time deposits, including brokered deposits, for the next five years were as follows:


2022	$	646,605
2023		189,541
2024		41,938
2025		11,107
2026		2,629

FHLB Borrowings (Tables)

12 Months Ended

Dec. 31, 2021

FHLB Borrowings

Schedule of FHLB borrowings


	December 31,
	2021		Interest Rates		2020		Interest Rates
Long-term fixed-rate FHLB advances	$	150,000	0.43% - 1.96	%	$	318,000	0.43% - 1.96 %

Subordinated Notes, net (Tables)

12 Months Ended

Dec. 31, 2021

Subordinated Notes, net

Schedule of subordinated notes


	December 31,
	2021		2020
Subordinated notes	$	65,000	$	65,000
Unamortized note premium		343		411
Unamortized debt issuance costs		—		(70)
Total	$	65,343	$	65,341

Stock-based Compensation (Tables)

12 Months Ended

Dec. 31, 2021

Stock-based Compensation

Schedule of assumptions used to estimate grant date fair value of stock option awards using Black-Scholes option pricing model


	Year Ended December 31,
	2020			2019
Risk-free interest rate		0.49	%		2.66	%
Expected term (in years)		5.61			6.75
Expected stock price volatility		33.91	%		26.26	%
Dividend yield		0.10	%		0.40	%

Summary of the company's stock option activity


				Weighted
		Weighted		Average
		Average		Remaining	Aggregate
	Number	Exercise		Contractual	Intrinsic
	of Shares	Price		Term	Value
				(Years)
Outstanding at January 1, 2021	377,882	$	5.61	9.09	$	162
Granted	—
Exercised	—
Forfeited/expired	(10,115)		12.62
Outstanding at December 31, 2021	367,767	$	5.41	8.13	$	525
Exercisable at December 31, 2021	226,550	$	4.98	8.22	$	350

Summary of the company's restricted stock awards activity


		Weighted Average
	Number	Grant Date
	of Shares	Fair Value
Nonvested at January 1, 2021	137,936	$	7.90
Granted	252,123		4.99
Vested	(31,906)		7.67
Forfeited	(64,516)		6.14
Nonvested at December 31, 2021	293,637	$	5.81

Regulatory Capital Requirements (Tables)

12 Months Ended

Dec. 31, 2021

Regulatory Capital Requirements

Schedule of actual and minimum required capital amounts and ratios


					For Capital
					Adequacy				To be Well
	Actual				Purposes				Capitalized
	Amount		Ratio		Amount		Ratio		Amount		Ratio
December 31, 2021
Total adjusted capital to risk-weighted assets
Consolidated	$	414,870	29.02	%	$	113,951	8.00	%		N/A	N/A
Bank		400,836	28.07			113,868	8.00		$	142,335	10.00	%
Tier 1 (core) capital to risk-weighted assets
Consolidated		344,247	24.08			85,463	6.00			N/A	N/A
Bank		382,509	26.79			85,401	6.00			113,868	8.00
Common Equity Tier 1 (CET1)
Consolidated		344,247	24.08			64,097	4.50			N/A	N/A
Bank		382,509	26.79			64,051	4.50			92,518	6.50
Tier 1 (core) capital to adjusted tangible assets (leverage ratio)
Consolidated		344,247	11.47			120,039	4.00			N/A	N/A
Bank		382,509	12.77			119,859	4.00			149,824	5.00


					For Capital
					Adequacy				To be Well
	Actual				Purposes				Capitalized
	Amount		Ratio		Amount		Ratio		Amount		Ratio
December 31, 2020
Total adjusted capital to risk-weighted assets
Consolidated	$	407,733	22.58	%	$	144,466	8.00	%		N/A	N/A
Bank		386,237	21.56			143,339	8.00		$	179,174	10.00	%
Tier 1 (core) capital to risk-weighted assets
Consolidated		319,204	17.68			108,350	6.00			N/A	N/A
Bank		363,224	20.27			107,504	6.00			143,339	8.00
Common Equity Tier 1 (CET1)
Consolidated		319,204	17.68			81,262	4.50			N/A	N/A
Bank		363,224	20.27			80,628	4.50			116,463	6.50
Tier 1 (core) capital to adjusted tangible assets (leverage ratio)
Consolidated		319,204	8.08			158,067	4.00			N/A	N/A
Bank		363,224	9.20			157,954	4.00			197,442	5.00

Income (Loss) Per Share (Tables)

12 Months Ended

Dec. 31, 2021

Income (Loss) Per Share

Schedule of computation of income (loss) per share, basic and diluted


	Year Ended December 31,
	2021		2020		2019
Numerator:
Net income (loss)	$	23,390	$	(12,967)	$	29,248

Denominator:
Weighted average common shares outstanding, basic		50,049,902		49,840,882		51,115,986
Weighted average effect of potentially dilutive common shares:
Stock options		55,060		—		—
Restricted stock		34,348		—		11,893
Weighted average common shares outstanding, diluted		50,139,310		49,840,882		51,127,879

Income (loss) per share:
Basic	$	0.47	$	(0.26)	$	0.57
Diluted	$	0.47	$	(0.26)	$	0.57

Schedule of anti-dilutive shares that were excluded from the computation of weighted average diluted shares outstanding


	Year Ended December 31,
	2021	2020	2019
Stock options	69,546	359,234	167,255
Restricted stock	78,418	166,621	28,676
Total	147,964	525,855	195,931

Fair Values of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2021

Fair Values of Financial Instruments

Schedule of assets measured at fair value on a recurring basis categorized by level of inputs


			Fair Value Measurements at
			December 31, 2021
			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
			Assets		Inputs		Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Financial Assets
Available-for-sale debt securities:
U.S. Treasury and Agency securities	$	122,168	$	48,827	$	73,341	$	—
Mortgage-backed securities		49,437		—		49,437		—
Collateralized mortgage obligations		136,849		—		136,849		—
Collateralized debt obligations		203		—		—		203
Equity securities		4,976		4,976		—		—


			Fair Value Measurements at
			December 31, 2020
			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
			Assets		Inputs		Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Financial Assets
Available-for-sale debt securities:
U.S. Treasury and Agency securities	$	138,997	$	40,192	$	98,805	$	—
Mortgage-backed securities		33,814		—		33,814		—
Collateralized mortgage obligations		126,596		—		126,596		—
Collateralized debt obligations		187		—		—		187
Equity securities		5,118		5,118		—		—

Summary of reconciliation for all assets measured at fair value on a recurring basis using significant unobservable inputs


	Fair Value Measurements Using Significant
	Unobservable Inputs (Level 3)
	Collateralized Debt Obligations
	2021		2020
Balance of recurring Level 3 assets at beginning of year	$	187	$	199
Total gains or losses (realized/unrealized):
Included in income-realized		—		—
Included in other comprehensive income (loss)		19		(10)
Principal maturities/settlements		(3)		(2)
Sales		—		—
Transfers in and/or out of Level 3		—		—
Balance of recurring Level 3 assets at end of year	$	203	$	187

Schedule of assets measured at fair value on a nonrecurring basis categorized by level of inputs


	Fair Value Measurements at December 31, 2021
			Quoted Prices in		Significant
			Active Markets		Other		Significant
			for Identical		Observable		Unobservable
	Fair		Assets		Inputs		Inputs
	Value		(Level 1)		(Level 2)		(Level 3)
Impaired loans:
Residential real estate	$	86	$	—	$	—	$	86
Commercial real estate loans held for sale		53,628		—		53,628		—
Mortgage servicing rights		2,052		—		—		2,052


	Fair Value Measurements at December 31, 2020
			Quoted Prices in		Significant
			Active Markets		Other		Significant
			for Identical		Observable		Unobservable
	Fair		Assets		Inputs		Inputs
	Value		(Level 1)		(Level 2)		(Level 3)
Impaired loans:
Commercial real estate	$	8,240	$	—	$	—	$	8,240
Construction		5,015		—		—		5,015
Mortgage loans held for sale		19,375		—		19,375		—
Mortgage servicing rights		5,175		—		—		5,175

Schedule of quantitative information about nonrecurring Level 3 fair value measurements


	Quantitative Information about Level 3 Fair Value Measurements at December 31, 2021
					Range
	Fair Value		Valuation Technique	Unobservable Inputs	(Weighted Average)⁽¹⁾
Impaired loans:
Residential real estate	$	86	Sales comparison approach	Adjustments for differences between the comparable sales	N/A (15%)
Mortgage servicing rights	$	2,052	Discounted cash flow	Discount rate	9.5% -12.0%
					(11.0)%
				Prepayment speed	10.5% -37.1%
					(19.7)%
				Default rate	0.1% -0.2%
					(0.2)%

(1)The range and weighted average for an asset category consisting of a single investment represents the significant unobservable input used in the fair value of the investment.


	Quantitative Information about Level 3 Fair Value Measurements at December 31, 2020
					Range
	Fair Value		Valuation Technique	Unobservable Inputs	(Weighted Average)⁽¹⁾
Impaired loans:
Commercial real estate	$	8,240	Sales comparison approach/Income capitalization approach	Adjustments for differences between the comparable sales and income data for similar loans and collateral underlying such loans	N/A (36%)
Construction	$	5,015	Hybrid of sales comparison and income capitalization approaches	Adjustments for differences between the comparable sales and income data for similar loans and collateral underlying such loans	N/A (15%)
Mortgage servicing rights	$	5,175	Discounted cash flow	Discount rate	9.5% - 12.0% (11.6)%
				Prepayment speed	10.5% -37.0% (23.7)%
				Default rate	0.1% - 0.2% (0.2)%

(1)	The range and weighted average for an asset category consisting of a single investment represents the significant unobservable input used in the fair value of the investment.

Schedule of carrying amounts and estimated fair values of financial instruments not carried at fair value

The carrying amounts and estimated fair values of financial instruments not carried at fair value at December 31, 2021 and 2020, are as follows:


	Fair Value Measurements at December 31, 2021
	Carrying		Fair
	Amount		Value		Level 1		Level 2		Level 3
Financial Assets
Cash and due from banks	$	411,676	$	411,676	$	411,676	$	—	$	—
Interest-bearing time deposits with other banks		1,183		1,183		1,183		—		—
Mortgage loans held for sale		11,359		11,809		—		11,809		—
Loans, net⁽¹⁾		1,956,180		2,025,409		—		—		2,025,409

Financial Liabilities
Time deposits		891,820		894,049		—		894,049		—
Federal Home Loan Bank borrowings		150,000		152,560		—		152,560		—
Subordinated notes, net		65,343		65,073		—		65,073		—

(1)	Excludes impaired loans measured at fair value on a nonrecurring basis at December 31, 2021.


	Fair Value Measurements at December 31, 2020
	Carrying		Fair
	Amount		Value		Level 1		Level 2		Level 3
Financial Assets
Cash and due from banks	$	998,497	$	998,497	$	998,497	$	—	$	—
Interest-bearing time deposits with other banks		7,021		7,021		7,021		—		—
Mortgage loans held for sale		2,909		3,052		—		3,052		—
Loans, net		2,434,356		2,521,874		—		—		2,521,874
Financial Liabilities
Time deposits⁽¹⁾		1,672,019		1,683,516		—		1,683,516		—
Federal Home Loan Bank borrowings		318,000		328,150		—		328,150		—
Subordinated notes, net		65,341		65,753		—		65,753		—

⁽¹⁾
Time deposits include accrued interest of $25,496 at December 31, 2020 to be consistent with the 2021 presentation.

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Taxes

Schedule of components of the income tax expense (benefit)


	Year Ended December 31,
	2021		2020		2019
Current:
Federal	$	4,814	$	4,489	$	15,341
State		1,429		1,908		6,354
Total current expense		6,243		6,397		21,695
Deferred:
Federal		2,088		(8,373)		(3,995)
State		1,312		(3,933)		(2,057)
Total deferred expense (benefit)		3,400		(12,306)		(6,052)
Total income tax expense (benefit)	$	9,643	$	(5,909)	$	15,643

Schedule of reconciliation of the U.S. federal statutory tax rate to Company's effective tax rate


	2021			2020			2019
U.S. federal statutory rate		21.0	%		21.0	%		21.1	%
Effect of:
State taxes, net of federal benefit		6.6	%		8.5	%		4.0	%
Non-deductible items		1.5	%		—	%		9.5	%
Income on cash surrender value of bank-owned life insurance		(0.4)	%		0.6	%		(0.2)	%
Other, net		0.5	%		1.2	%		0.4	%
Effective tax rate		29.2	%		31.3	%		34.8	%

Schedule of components of deferred tax assets and liabilities


	December 31,
	2021		2020
Deferred tax assets:
Allowance for loan losses	$	15,557	$	20,185
Operating lease liabilities		5,337		5,715
Loans held for sale valuation allowance		2,180		—
Compensation plans		902		531
Accrued expenses		891		378
Interest on nonaccrual loans		833		686
Mortgage repurchase liability		812		2,705
State franchise tax		422		503
Supplemental retirement benefit plan		270		841
Other		709		393
Total deferred tax assets		27,913		31,937
Less: valuation allowance		(30)		—
Total deferred tax assets, net of valuation allowance		27,883		31,937
Deferred tax liabilities:
Operating lease right-of-use asset		(5,003)		(5,363)
Mortgage servicing rights		(749)		(1,586)
Other		(705)		(662)
Total deferred tax liabilities		(6,457)		(7,611)
Deferred tax asset, net	$	21,426	$	24,326

Operating Leases (Tables)

12 Months Ended

Dec. 31, 2021

Operating Leases

Schedule of Operating lease expense information


	Year Ended December 31,
	2021		2020		2019
Operating lease costs	$	4,377	$	4,554	$	4,507
Variable lease cost		1,136		959		1,235
Total	$	5,513	$	5,513	$	5,742

Schedule of Maturity of lease liabilities


Year Ended December 31,
2022	$	4,110
2023		3,899
2024		3,788
2025		3,260
2026		2,491
Thereafter		3,508
Total lease payments		21,056
Less: future interest costs⁽¹⁾		(1,656)
Present value of lease liabilities	$	19,400

(1)	Computed using the estimated interest rate for each lease

Schedule of Other information


	Year Ended December 31,
Other Information	2021			2020			2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	4,355		$	4,478		$	4,307
Weighted average remaining lease term		5.53	years		6.60	years		6.83	years
Weighted average discount rate		2.94	%		3.16	%		3.54	%

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies

Summary of total amount of unfunded commitments to extend credit and standby letters of credit outstanding


	2021		2020
Commitments to make loans	$	23,610	$	40,331
Unused lines of credit		45,805		140,665
Standby letters of credit		24		24

Schedule of Advantage Loan Program loans to be repurchased by date range


	Outstanding
	Principal Balance at
Repurchase Date Range	December 31, 2021
February 28, 2022 – February 28, 2023	$	15,164
May 21, 2022 – May 21, 2023		13,874
July 25, 2022 – July 25, 2023		17,211
Present – July 22, 2023		26,768
	$	73,017

Schedule of activity in the mortgage repurchase liability


	Year Ended
	December 31,
	2021		2020
Balance, beginning of period	$	9,699	$	7,823
Net provision (recovery)		(1,234)		2,527
Loss on loan repurchases		(5,511)		(651)
Balance, end of the period	$	2,954	$	9,699

Condensed Financial Information of Sterling Bancorp, Inc. (Parent Only) (Tables)

12 Months Ended

Dec. 31, 2021

Condensed Financial Information of Sterling Bancorp, Inc. (Parent Only)

Schedule of Financial statements of Sterling Bancorp, Inc

CONDENSED BALANCE SHEETS


	December 31,
	2021		2020
ASSETS
Cash held at Bank	$	26,905	$	20,952
Investment in subsidiaries		381,936		363,611
Other assets		1,777		13,914
Total assets	$	410,618	$	398,477
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Subordinated notes, net	$	65,343	$	65,341
Other liabilities		1,648		13,545
Total liabilities		66,991		78,886
Total shareholders’ equity		343,627		319,591
Total liabilities and shareholders’ equity	$	410,618	$	398,477

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)


	Year Ended December 31,
	2021		2020		2019
Expenses:
Interest expense	$	4,127	$	4,713	$	4,700
Provision (recovery) for contingent losses, net		—		(10,000)		10,000
Other		3,574		6,135		803
Total expenses		7,701		848		15,503
Loss before income tax and equity in subsidiaries loss		(7,701)		(848)		(15,503)
Income tax benefit		2,108		246		4,496
Loss before equity in subsidiaries loss		(5,593)		(602)		(11,007)
Equity in subsidiaries income (loss)		28,983		(12,365)		40,255
Net income (loss)	$	23,390	$	(12,967)	$	29,248
Other comprehensive income (loss)
Equity in other comprehensive income (loss) of subsidiaries		(1,284)		191		205
Total comprehensive income (loss)	$	22,106	$	(12,776)	$	29,453

CONDENSED STATEMENTS OF CASH FLOWS


	Year Ended December 31,
	2021		2020		2019
Cash flows from operating activities
Net income (loss)	$	23,390	$	(12,967)	$	29,248
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Equity in subsidiaries (income) loss		(28,983)		12,365		(40,255)
Other		2		162		150
Change in operating assets and liabilities:
Other assets		12,137		(289)		(3,353)
Other liabilities		(11,897)		(7,452)		10,000
Net cash used in operating activities		(5,351)		(8,181)		(4,210)
Cash flows from investing activities
Capital contributed to subsidiary (Bank)		—		(50,000)		—
Dividends received from subsidiaries		10,000		—		19,002
Net cash provided by (used in) investing activities		10,000		(50,000)		19,002
Cash flows from financing activities
Proceeds from issuance of shares of common stock		1,350		—		—
Repurchase of shares of common stock		—		(82)		(30,349)
Repurchase of restricted shares to pay employee tax liability		(46)		—		—
Dividends paid to shareholders		—		(499)		(2,044)
Net cash provided by (used in) financing activities		1,304		(581)		(32,393)
Net increase (decrease) in cash		5,953		(58,762)		(17,601)
Cash held at Bank, beginning of year		20,952		79,714		97,315
Cash held at Bank, end of year	$	26,905	$	20,952	$	79,714
Supplemental cash flows information:
Cash paid for:
Interest	$	4,249	$	4,550	$	4,550

Nature of Operations (Details) $ in Thousands	1 Months Ended	12 Months Ended
Nature of Operations (Details) $ in Thousands	Jul. 31, 2021 USD ($)	Dec. 31, 2021 USD ($) item segment
Nature of Operations and Basis of Presentation
Number of branches \| item		28
Number of reportable segments \| segment		1
Gain on sale of branch transaction		$ 1,417
Net cash paid on sale of branch office	$ 63,545	63,545
Bellevue, Washington branch office
Nature of Operations and Basis of Presentation
Customer deposits transferred	$ 65,437
Gain on sale of branch transaction		$ 1,417
San Francisco and Los Angeles, California
Nature of Operations and Basis of Presentation
Number of branches \| item		26

Summary of Significant Accounting Policies - Concentration of Credit Risk (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 21, 2020
Concentration of Credit Risk
Aggregate consideration			$ 250
Loans Receivable	$ 2,012,814	$ 2,506,743
Loans held for sale	64,987	22,284
Loans Held For Sale Include Nonaccrual Loans	18,026
FDIC insurance limit	250
Residential real estate
Concentration of Credit Risk
Loans Receivable	1,704,231	$ 2,033,526
Loans Held For Sale Include Nonaccrual Loans	$ 8,671
Residential real estate loans \| Loans receivables \| Residential real estate
Concentration of Credit Risk
Concentration of credit risk	83.00%	81.00%
California \| Loans receivables \| Residential real estate
Concentration of Credit Risk
Concentration of credit risk	85.00%	87.00%
Advantage loan program \| Loans receivables \| Residential real estate
Concentration of Credit Risk
Concentration of credit risk	69.00%	74.00%
Loans Receivable	$ 1,185,458	$ 1,515,248
Loans held for sale	11,359	$ 19,375
Loans Held For Sale Include Nonaccrual Loans	$ 8,671

Summary of Significant Accounting Policies - Employee Retention Credits under CARES Act (Details) $ in Thousands		3 Months Ended			12 Months Ended
	Mar. 27, 2020 USD ($)	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2021 USD ($)	Dec. 31, 2019 employee	Sep. 30, 2020 USD ($)	Jun. 30, 2020 USD ($)	Mar. 31, 2020 USD ($)
CARES Act ERC tax credit benefit recorded					$ 6,529
CARES Act ERC tax credit receivable					$ 6,529
Percentage of Employee Retention Credits to qualified wages payments to employees	70.00%
Employee Retention Credits capped for qualified wages for each employee	$ 10,000
Maximum
Average number of employees \| employee						500
Employee Retention Credits claimed per employee for each quarter							$ 7,000	$ 7,000	$ 7,000
Minimum
Decrease in gross receipts (percentage)		20	20	20

Summary of Significant Accounting Policies - Federal Home Loan Bank Stock (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Summary of Significant Accounting Policies
Cash dividends received on investment securities	$ 609	$ 847	$ 1,219

Summary of Significant Accounting Policies - Reclassification (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Reclassification
Accrued expenses and other liabilities	$ 36,725	$ 60,103
Noninterest-bearing deposits	63,760	64,509
Interest-bearing deposits	$ 2,197,975	3,066,004
Accrued interest
Reclassification
Interest-bearing deposits		25,496
Revision of Prior Period, Reclassification, Adjustment \| Custodial escrow balances
Reclassification
Accrued expenses and other liabilities		(6,051)
Noninterest-bearing deposits		6,051
Revision of Prior Period, Reclassification, Adjustment \| Accrued interest
Reclassification
Accrued expenses and other liabilities		(25,496)
Interest-bearing deposits		$ 25,496

Investment Securities - Amortized Cost and Fair Value Corresponding Gross Unrealized Gains and Losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Available for sale:
Available for sale, Amortized Cost	$ 309,903	$ 299,058
Available for sale, Gross Unrealized Gain	720	955
Available for sale, Gross Unrealized Loss	(1,966)	(419)
Investment securities available for sale, at fair value	308,657	299,594
Carrying value of debt securities held of any single issuer in excess of 10% of shareholders equity	$ 0	$ 0
Threshold percentage of total shareholders' equity above which securities of any single issuer exceed	10.00%	10.00%
Sales of investment securities		$ 99,971	$ 2,914
Gross realized gains		337	6
Gross realized losses		(158)
Securities pledged as collateral on FHLB borrowings	$ 557,410	630,197
Total net realized gains		179	6
Income tax expense on net realized gains		50	$ 1
Collateralized mortgage obligations \| US Government Corporations and Agencies Securities
Available for sale:
Investment securities available for sale, at fair value	529	816
Debt securities
Available for sale:
Securities pledged as collateral on FHLB borrowings	122,168
U.S. Treasury securities
Available for sale:
Available for sale, Amortized Cost		138,742
Available for sale, Gross Unrealized Gain		255
Investment securities available for sale, at fair value		138,997
U.S. Treasury and Agency securities
Available for sale:
Available for sale, Amortized Cost	122,291
Available for sale, Gross Unrealized Gain	106
Available for sale, Gross Unrealized Loss	(229)
Investment securities available for sale, at fair value	122,168
Mortgage-backed securities
Available for sale:
Available for sale, Amortized Cost	49,739	33,743
Available for sale, Gross Unrealized Gain	84	72
Available for sale, Gross Unrealized Loss	(386)	(1)
Investment securities available for sale, at fair value	49,437	33,814
Collateralized mortgage obligations
Available for sale:
Available for sale, Amortized Cost	137,662	126,359
Available for sale, Gross Unrealized Gain	530	628
Available for sale, Gross Unrealized Loss	(1,343)	(391)
Investment securities available for sale, at fair value	136,849	126,596
Collateralized debt obligations
Available for sale:
Available for sale, Amortized Cost	211	214
Available for sale, Gross Unrealized Loss	(8)	(27)
Investment securities available for sale, at fair value	$ 203	$ 187

Investment Securities - Amortized Cost and Fair Value By Contractual Maturity (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Available for sale, Amortized Cost
Available for sale, Amortized Cost	$ 309,903	$ 299,058
Available for sale, Fair Value
Available for sale, Fair Value	308,657	299,594
U.S. Treasury and Agency securities
Available for sale, Amortized Cost
Due less than one year	50,313
Due after one year through five years	71,978
Available for sale, Amortized Cost	122,291
Available for sale, Fair Value
Due less than one year	50,306
Due after one year through five years	71,862
Available for sale, Fair Value	122,168
U.S. Treasury securities
Available for sale, Amortized Cost
Available for sale, Amortized Cost		138,742
Available for sale, Fair Value
Available for sale, Fair Value		138,997
Mortgage-backed securities
Available for sale, Amortized Cost
Available for sale, Amortized Cost	49,739	33,743
Available for sale, Fair Value
Available for sale, Fair Value	49,437	33,814
Collateralized mortgage obligations
Available for sale, Amortized Cost
Available for sale, Amortized Cost	137,662	126,359
Available for sale, Fair Value
Available for sale, Fair Value	136,849	126,596
Collateralized debt obligations
Available for sale, Amortized Cost
Available for sale, Amortized Cost	211	214
Available for sale, Fair Value
Available for sale, Fair Value	$ 203	$ 187

Investment Securities - Aggregated by Major Security Type and Length of Time in a Continuous Unrealized Loss Position (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($) security	Dec. 31, 2020 USD ($)
Fair Value
Less than 12 Months, Fair value	$ 144,097	$ 81,434
12 Months or More, Fair Value	11,345	187
Available for sale, Continuous unrealized loss position, Fair Value	155,442	81,621
Unrealized Losses
Less than 12 Months, Unrealized Losses	(1,607)	(392)
12 Months or More, Unrealized Losses	(359)	(27)
Available for sale, Continuous unrealized loss position, Unrealized Losses	$ (1,966)	(419)
Number of debt securities in portfolio \| security	29
Number of debt securities in an unrealized loss position \| security	16
U.S. Treasury and Agency securities
Fair Value
Less than 12 Months, Fair value	$ 49,865
Available for sale, Continuous unrealized loss position, Fair Value	49,865
Unrealized Losses
Less than 12 Months, Unrealized Losses	(229)
Available for sale, Continuous unrealized loss position, Unrealized Losses	(229)
Mortgage-backed securities
Fair Value
Less than 12 Months, Fair value	7,878	5,694
12 Months or More, Fair Value	8,729
Available for sale, Continuous unrealized loss position, Fair Value	16,607	5,694
Unrealized Losses
Less than 12 Months, Unrealized Losses	(36)	(1)
12 Months or More, Unrealized Losses	(350)
Available for sale, Continuous unrealized loss position, Unrealized Losses	(386)	(1)
Collateralized mortgage obligations
Fair Value
Less than 12 Months, Fair value	86,354	75,740
12 Months or More, Fair Value	2,413
Available for sale, Continuous unrealized loss position, Fair Value	88,767	75,740
Unrealized Losses
Less than 12 Months, Unrealized Losses	(1,342)	(391)
12 Months or More, Unrealized Losses	(1)
Available for sale, Continuous unrealized loss position, Unrealized Losses	(1,343)	(391)
Collateralized debt obligations
Fair Value
12 Months or More, Fair Value	203	187
Available for sale, Continuous unrealized loss position, Fair Value	203	187
Unrealized Losses
12 Months or More, Unrealized Losses	(8)	(27)
Available for sale, Continuous unrealized loss position, Unrealized Losses	$ (8)	$ (27)

Investment Securities - Equity Securities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Equity Securities
Fair value of equity securities	$ 5,222	$ 5,364
Equity securities with readily determinable fair values	4,976	5,118
Equity securities with readily determinable fair values
Net gains (losses) recorded during the period on equity securities	(142)	108	$ 114
Unrealized gains (losses) recorded during the period on equity securities held at the reporting date	(142)	108	$ 114
Level 3
Equity Securities
Investment in equity securities without readily determinable fair value	$ 246	$ 246

Loans - Major Categories of Loans Held for Sale (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Major categories of loans
Total loans held for sale	$ 64,987	$ 22,284
Loans held for sale include nonaccrual loans	18,026
Modified troubled debt restructuring	18,416	28,347
Charge offs to allowance for loan losses	9,886	4,301	$ 176
Loans and Leases Receivable, Net Amount	1,956,266	2,434,356
Residential real estate
Major categories of loans
Total loans held for sale	11,359	22,284
Loans held for sale include nonaccrual loans	8,671
Charge offs to allowance for loan losses		3,594
Loans and Leases Receivable, Net Amount	237,049	562,139
Nonaccrual residential real estate loans
Major categories of loans
Modified troubled debt restructuring	2,059
Loans transferred from loans held for investment to loans held for sale		22,861
Charge offs to allowance for loan losses		3,486
Loans and Leases Receivable, Net Amount		$ 19,375
Commercial real estate
Major categories of loans
Total loans held for sale	53,628
Loans held for sale include nonaccrual loans	9,355
Loans transferred from loans held for investment to loans held for sale	61,549
Charge offs to allowance for loan losses	7,921
Loans and Leases Receivable, Net Amount	$ 53,628

Loans - Major Categories of Loans Held for Investment and the Allowance for Loan Losses (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Major categories of loans held for investment and the allowance for loan losses
Total loans	$ 2,012,814	$ 2,506,743
Less: allowance for loan losses	(56,548)	(72,387)	$ (21,730)	$ (21,850)
Loans, net	1,956,266	2,434,356
Carrying value of loans pledged as collateral on FHLB borrowings	557,410	630,197
Residential real estate
Major categories of loans held for investment and the allowance for loan losses
Total loans	1,704,231	2,033,526
Less: allowance for loan losses	(32,202)	(32,366)	(12,336)	(13,826)
Loans, net	237,049	562,139
Commercial real estate
Major categories of loans held for investment and the allowance for loan losses
Total loans	201,240	259,958
Less: allowance for loan losses	(12,608)	(21,942)	(5,243)	(2,573)
Loans, net	53,628
Construction
Major categories of loans held for investment and the allowance for loan losses
Total loans	106,759	206,581
Less: allowance for loan losses	(11,730)	(17,988)	(3,822)	(3,273)
Commercial lines of credit
Major categories of loans held for investment and the allowance for loan losses
Total loans	363	6,671
Less: allowance for loan losses	(8)	(91)	(328)	(1,058)
Other consumer
Major categories of loans held for investment and the allowance for loan losses
Total loans	$ 221	$ 7
Less: allowance for loan losses			$ (1)	$ (1)

Loans - Activity in the Allowance For Loan Losses by Portfolio Segment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Allowance for loan losses
Beginning balance	$ 72,387	$ 21,730	$ 21,850
Provision (recovery) for loan losses	(8,265)	54,865	(133)
Charge offs	(9,886)	(4,301)	(176)
Recoveries	2,312	93	189
Total ending balance	56,548	72,387	21,730
Residential real estate
Allowance for loan losses
Beginning balance	32,366	12,336	13,826
Provision (recovery) for loan losses	(1,578)	23,604	(1,511)
Charge offs		(3,594)
Recoveries	1,414	20	21
Total ending balance	32,202	32,366	12,336
Commercial real estate
Allowance for loan losses
Beginning balance	21,942	5,243	2,573
Provision (recovery) for loan losses	(2,052)	16,634	2,509
Charge offs	(7,921)
Recoveries	639	65	161
Total ending balance	12,608	21,942	5,243
Construction
Allowance for loan losses
Beginning balance	17,988	3,822	3,273
Provision (recovery) for loan losses	(4,552)	14,866	542
Charge offs	(1,965)	(707)
Recoveries	259	7	7
Total ending balance	11,730	17,988	3,822
Commercial lines of credit
Allowance for loan losses
Beginning balance	91	328	1,058
Provision (recovery) for loan losses	(83)	(237)	(554)
Charge offs			(176)
Total ending balance	$ 8	91	328
Other consumer
Allowance for loan losses
Beginning balance		1	1
Provision (recovery) for loan losses		(2)
Recoveries		$ 1
Total ending balance			1
Unallocated
Allowance for loan losses
Beginning balance			1,119
Provision (recovery) for loan losses			$ (1,119)

Loans - Activity in the Allowance For Loan Losses by Portfolio Segment And Based On Impairment Evaluation Method (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$ 159	$ 2,237
Collectively evaluated for impairment	56,389	70,150
Total ending allowance balance	56,548	72,387	$ 21,730	$ 21,850
Loans:
Loans individually evaluated for impairment	19,891	74,034
Loans collectively evaluated for impairment	1,992,923	2,432,709
Total loans	2,012,814	2,506,743
Residential real estate
Ending allowance balance attributable to loans:
Individually evaluated for impairment	159	41
Collectively evaluated for impairment	32,043	32,325
Total ending allowance balance	32,202	32,366	12,336	13,826
Loans:
Loans individually evaluated for impairment	350	208
Loans collectively evaluated for impairment	1,703,881	2,033,318
Total loans	1,704,231	2,033,526
Commercial real estate
Ending allowance balance attributable to loans:
Individually evaluated for impairment		287
Collectively evaluated for impairment	12,608	21,655
Total ending allowance balance	12,608	21,942	5,243	2,573
Loans:
Loans individually evaluated for impairment	4,441	20,974
Loans collectively evaluated for impairment	196,799	238,984
Total loans	201,240	259,958
Construction
Ending allowance balance attributable to loans:
Individually evaluated for impairment		1,905
Collectively evaluated for impairment	11,730	16,083
Total ending allowance balance	11,730	17,988	3,822	3,273
Loans:
Loans individually evaluated for impairment	14,984	48,871
Loans collectively evaluated for impairment	91,775	157,710
Total loans	106,759	206,581
Commercial lines of credit
Ending allowance balance attributable to loans:
Individually evaluated for impairment		4
Collectively evaluated for impairment	8	87
Total ending allowance balance	8	91	328	1,058
Loans:
Loans individually evaluated for impairment	116	3,981
Loans collectively evaluated for impairment	247	2,690
Total loans	363	6,671
Other consumer
Ending allowance balance attributable to loans:
Total ending allowance balance			$ 1	1
Loans:
Loans collectively evaluated for impairment	221	7
Total loans	$ 221	$ 7
Unallocated
Ending allowance balance attributable to loans:
Total ending allowance balance				$ 1,119

Loans - Impaired Loans by Class of Loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Impaired loans by class of loans
Unpaid principal balance, with no related allowance for loan losses recorded	$ 19,670	$ 59,317	$ 19,834
Unpaid principal balance, with an allowance for loan losses recorded	273	15,803	248
Total Unpaid Principal Balance	19,943	75,120	20,082
Recorded investment, with no related allowance for loan losses recorded	19,606	58,350	19,555
Recorded investment, with an allowance for loan losses recorded	285	15,684	249
Total Recorded Investment	19,891	74,034	19,804
Allowance for Loan Losses	159	2,237	48
Average recorded investment, with no related allowance for loan losses recorded	48,248	38,466	8,816
Average recorded investment, with an allowance for loan losses recorded	2,822	10,291	254
Total Average Recorded Investment	51,070	48,757	9,070
Interest Income Recognized, with no related allowance for loan losses recorded	239	1,064	684
Interest Income Recognized, with an allowance for loan losses recorded	222	267	12
Total Interest Income Recognized	461	1,331	696
Cash Basis Interest Recognized, with no related allowance for loan losses recorded	226	827	672
Cash Basis Interest Recognized, with an allowance for loan losses recorded	203	236	12
Total Cash Basis Interest Recognized	429	1,063	684
Residential real estate \| Real estate loan, first mortgage
Impaired loans by class of loans
Unpaid principal balance, with no related allowance for loan losses recorded	91	116	125
Unpaid principal balance, with an allowance for loan losses recorded	273	114	116
Recorded investment, with no related allowance for loan losses recorded	65	94	98
Recorded investment, with an allowance for loan losses recorded	285	114	117
Allowance for Loan Losses	159	41	43
Average recorded investment, with no related allowance for loan losses recorded	79	96	104
Average recorded investment, with an allowance for loan losses recorded	281	116	118
Interest Income Recognized, with no related allowance for loan losses recorded		5	5
Interest Income Recognized, with an allowance for loan losses recorded	3
Cash Basis Interest Recognized, with no related allowance for loan losses recorded		4	5
Cash Basis Interest Recognized, with an allowance for loan losses recorded	3
Commercial real estate \| Real estate loan, Retail
Impaired loans by class of loans
Unpaid principal balance, with no related allowance for loan losses recorded		1,247	1,308
Recorded investment, with no related allowance for loan losses recorded		1,029	1,100
Average recorded investment, with no related allowance for loan losses recorded	612	1,065	1,136
Interest Income Recognized, with no related allowance for loan losses recorded		58	60
Cash Basis Interest Recognized, with no related allowance for loan losses recorded		48	55
Commercial real estate \| Real estate loan, Multifamily
Impaired loans by class of loans
Average recorded investment, with no related allowance for loan losses recorded			449
Interest Income Recognized, with no related allowance for loan losses recorded			12
Cash Basis Interest Recognized, with no related allowance for loan losses recorded			12
Commercial real estate \| Real estate loan, Offices
Impaired loans by class of loans
Average recorded investment, with no related allowance for loan losses recorded	1,846		378
Interest Income Recognized, with no related allowance for loan losses recorded			25
Cash Basis Interest Recognized, with no related allowance for loan losses recorded			25
Commercial real estate \| Real estate loan, Hotels/Single-room occupancy hotels
Impaired loans by class of loans
Unpaid principal balance, with no related allowance for loan losses recorded	4,459	11,428
Unpaid principal balance, with an allowance for loan losses recorded		8,645
Recorded investment, with no related allowance for loan losses recorded	4,441	11,419
Recorded investment, with an allowance for loan losses recorded		8,526
Allowance for Loan Losses		287
Average recorded investment, with no related allowance for loan losses recorded	14,370	5,221
Average recorded investment, with an allowance for loan losses recorded		3,858
Commercial real estate \| Real Estate Loan, Other
Impaired loans by class of loans
Average recorded investment, with no related allowance for loan losses recorded	68
Construction
Impaired loans by class of loans
Unpaid principal balance, with no related allowance for loan losses recorded	15,004	42,669	17,156
Unpaid principal balance, with an allowance for loan losses recorded		6,920
Recorded investment, with no related allowance for loan losses recorded	14,984	41,951	17,112
Recorded investment, with an allowance for loan losses recorded		6,920
Allowance for Loan Losses		1,905
Average recorded investment, with no related allowance for loan losses recorded	30,239	29,395	6,682
Average recorded investment, with an allowance for loan losses recorded	2,541	6,189
Interest Income Recognized, with no related allowance for loan losses recorded	231	964	582
Interest Income Recognized, with an allowance for loan losses recorded	219	255
Cash Basis Interest Recognized, with no related allowance for loan losses recorded	218	744	575
Cash Basis Interest Recognized, with an allowance for loan losses recorded	200	226
Commercial lines of credit \| Private banking
Impaired loans by class of loans
Unpaid principal balance, with no related allowance for loan losses recorded	116		1,245
Unpaid principal balance, with an allowance for loan losses recorded		124	132
Recorded investment, with no related allowance for loan losses recorded	116		1,245
Recorded investment, with an allowance for loan losses recorded		124	132
Allowance for Loan Losses		4	5
Average recorded investment, with no related allowance for loan losses recorded	1,034	1,505
Average recorded investment, with an allowance for loan losses recorded		128	136
Interest Income Recognized, with no related allowance for loan losses recorded	8	42
Interest Income Recognized, with an allowance for loan losses recorded		7	7
Cash Basis Interest Recognized, with no related allowance for loan losses recorded	$ 8	35
Cash Basis Interest Recognized, with an allowance for loan losses recorded		6	7
Commercial lines of credit \| C&I lending
Impaired loans by class of loans
Unpaid principal balance, with no related allowance for loan losses recorded		3,857
Recorded investment, with no related allowance for loan losses recorded		3,857
Average recorded investment, with no related allowance for loan losses recorded		$ 1,184
Average recorded investment, with an allowance for loan losses recorded			67
Interest Income Recognized, with an allowance for loan losses recorded			5
Cash Basis Interest Recognized, with an allowance for loan losses recorded			$ 5

Loans - Investment in Nonaccrual and Loans Past Due Still Accruing by Class of Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Investment in nonaccrual and loans past due still accruing by class of loans
Nonaccrual	$ 62,615	$ 86,424
Loans Past Due Over 90 Days Still Accruing	39	46
Total	2,012,814	2,506,743
Not Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total	1,912,084	2,351,482
Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total	100,730	155,261
30 - 59 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total	34,651	51,619
60 - 89 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total	3,425	17,172
Greater than 89 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total	62,654	86,470
Residential real estate
Investment in nonaccrual and loans past due still accruing by class of loans
Total	1,704,231	2,033,526
Residential real estate \| Real estate loan, first mortgage
Investment in nonaccrual and loans past due still accruing by class of loans
Nonaccrual	45,439	20,043
Loans Past Due Over 90 Days Still Accruing	39	46
Total	1,690,456	2,016,034
Residential real estate \| Real estate loan, first mortgage \| Not Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total	1,617,509	1,943,602
Residential real estate \| Real estate loan, first mortgage \| Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total	72,947	72,432
Residential real estate \| Real estate loan, first mortgage \| 30 - 59 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total	24,044	37,819
Residential real estate \| Real estate loan, first mortgage \| 60 - 89 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total	3,425	14,524
Residential real estate \| Real estate loan, first mortgage \| Greater than 89 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total	45,478	20,089
Residential real estate \| Real estate loan, second mortgage
Investment in nonaccrual and loans past due still accruing by class of loans
Nonaccrual	236	686
Total	13,775	17,492
Residential real estate \| Real estate loan, second mortgage \| Not Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total	13,432	16,310
Residential real estate \| Real estate loan, second mortgage \| Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total	343	1,182
Residential real estate \| Real estate loan, second mortgage \| 30 - 59 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total	107	362
Residential real estate \| Real estate loan, second mortgage \| 60 - 89 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total		134
Residential real estate \| Real estate loan, second mortgage \| Greater than 89 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total	236	686
Commercial real estate
Investment in nonaccrual and loans past due still accruing by class of loans
Total	201,240	259,958
Commercial real estate \| Real estate loan, Retail
Investment in nonaccrual and loans past due still accruing by class of loans
Nonaccrual		20
Total	19,574	16,200
Commercial real estate \| Real estate loan, Retail \| Not Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total	19,574	15,170
Commercial real estate \| Real estate loan, Retail \| Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total		1,030
Commercial real estate \| Real estate loan, Retail \| 30 - 59 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total		1,010
Commercial real estate \| Real estate loan, Retail \| Greater than 89 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total		20
Commercial real estate \| Real estate loan, Multifamily
Investment in nonaccrual and loans past due still accruing by class of loans
Total	96,960	79,209
Commercial real estate \| Real estate loan, Multifamily \| Not Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total	96,960	75,374
Commercial real estate \| Real estate loan, Multifamily \| Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total		3,835
Commercial real estate \| Real estate loan, Multifamily \| 30 - 59 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total		3,835
Commercial real estate \| Real estate loan, Offices
Investment in nonaccrual and loans past due still accruing by class of loans
Total	12,382	27,061
Commercial real estate \| Real estate loan, Offices \| Not Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total	12,382	27,061
Commercial real estate \| Real estate loan, Industrial
Investment in nonaccrual and loans past due still accruing by class of loans
Total	7,320	13,186
Commercial real estate \| Real estate loan, Industrial \| Not Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total	7,320	13,186
Commercial real estate \| Real estate loan, Other
Investment in nonaccrual and loans past due still accruing by class of loans
Total	50,783	56,667
Commercial real estate \| Real estate loan, Other \| Not Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total	50,783	56,667
Commercial real estate \| Hotels/SROs
Investment in nonaccrual and loans past due still accruing by class of loans
Nonaccrual	4,441	19,945
Total	14,221	67,635
Commercial real estate \| Hotels/SROs \| Not Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total	9,780	47,690
Commercial real estate \| Hotels/SROs \| Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total	4,441	19,945
Commercial real estate \| Hotels/SROs \| Greater than 89 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total	4,441	19,945
Construction
Investment in nonaccrual and loans past due still accruing by class of loans
Nonaccrual	12,499	41,873
Total	106,759	206,581
Construction \| Not Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total	83,760	153,601
Construction \| Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total	22,999	52,980
Construction \| 30 - 59 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total	10,500	8,593
Construction \| 60 - 89 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total		2,514
Construction \| Greater than 89 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total	12,499	41,873
Commercial lines of credit
Investment in nonaccrual and loans past due still accruing by class of loans
Total	363	6,671
Commercial lines of credit \| Private banking
Investment in nonaccrual and loans past due still accruing by class of loans
Nonaccrual		2,285
Total	116	2,409
Commercial lines of credit \| Private banking \| Not Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total	116	124
Commercial lines of credit \| Private banking \| Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total		2,285
Commercial lines of credit \| Private banking \| Greater than 89 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total		2,285
Commercial lines of credit \| C&I lending
Investment in nonaccrual and loans past due still accruing by class of loans
Nonaccrual		1,572
Total	247	4,262
Commercial lines of credit \| C&I lending \| Not Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total	247	2,690
Commercial lines of credit \| C&I lending \| Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total		1,572
Commercial lines of credit \| C&I lending \| Greater than 89 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total		1,572
Other consumer
Investment in nonaccrual and loans past due still accruing by class of loans
Total	221	7
Other consumer \| Not Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total	$ 221	$ 7

Loans - Troubled Debt Restructurings (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($) loan	Dec. 31, 2020 USD ($) loan
Troubled Debt Restructurings
Loans classified as troubled debt restructurings	$ 18,416	$ 28,347
Allowance for outstanding loan losses classified as troubled debt restructurings	$ 39	1,951
Number of loans modified during the period, that were considered as TDRs \| loan	0
Loans amount modified under the CARES Act COVID-19 forbearance program	$ 0	15,785
Accrued interest receivable under the CARES Act COVID-19 forbearance program		$ 146
Private banking
Troubled Debt Restructurings
Number of loans modified during the period, that were considered as TDRs \| loan		1
Five Loans
Troubled Debt Restructurings
Number of TDRs subsequently defaulted \| loan	5
Residential real estate
Troubled Debt Restructurings
Loans secured by residential real estate properties in the process of foreclosure	$ 2,780	$ 5,320
Residential real estate \| Real estate loan, first mortgage
Troubled Debt Restructurings
Loans classified as troubled debt restructurings	181	209
Allowance for outstanding loan losses classified as troubled debt restructurings	39	41
Commercial real estate \| Real estate loan, Retail
Troubled Debt Restructurings
Loans classified as troubled debt restructurings		1,029
Commercial real estate \| Real estate loan, Hotels/Single-room occupancy hotels
Troubled Debt Restructurings
Loans classified as troubled debt restructurings	4,441
Construction
Troubled Debt Restructurings
Loans classified as troubled debt restructurings	13,678	26,985
Allowance for outstanding loan losses classified as troubled debt restructurings		$ 1,906
Number of loans modified during the period, that were considered as TDRs \| loan		3
Number of TDRs subsequently defaulted \| loan		5
Troubled debt restructuring that defaulted within one year of modification		$ 19,987
Construction \| Five Loans
Troubled Debt Restructurings
Troubled debt restructuring that defaulted within one year of modification	15,752
Construction loans and private banking loan \| Pre and Post Modification
Troubled Debt Restructurings
Loans classified as troubled debt restructurings		13,777
Commercial lines of credit and private banking
Troubled Debt Restructurings
Loans classified as troubled debt restructurings	116	124
Allowance for outstanding loan losses classified as troubled debt restructurings		4
Mortgage loans held for sale
Troubled Debt Restructurings
Increase in allowance for outstanding loan losses classified as troubled debt restructurings	$ 2,770	$ 3,209

Loans - Risk Rating of Loans by Class of Loans (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended	12 Months Ended
	May 31, 2020	Jun. 30, 2020	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Recorded investment in loans
Total			$ 2,012,814	$ 2,506,743
Outstanding principal balance of loans repurchased				69,638
Loans and Leases Receivable, Net Amount			1,956,266	2,434,356
Portfolio loans sold during the period					$ 173,382
Gain on sale of portfolio loans					$ 5,970
Advantage Loan Program
Recorded investment in loans
Total			171,185	57,039
Outstanding principal balance of loans repurchased	$ 38,704	$ 30,934	173,829	69,638
Loans and Leases Receivable, Net Amount			142,810	429,816
Pass
Recorded investment in loans
Total			1,895,663	2,308,592
Special Mention
Recorded investment in loans
Total			27,761	59,668
Substandard
Recorded investment in loans
Total			83,226	131,469
Doubtful
Recorded investment in loans
Total			6,164	7,014
Residential real estate
Recorded investment in loans
Total			1,704,231	2,033,526
Loans and Leases Receivable, Net Amount			237,049	562,139
Residential real estate \| Real estate loan, first mortgage
Recorded investment in loans
Total			1,690,456	2,016,034
Residential real estate \| Real estate loan, second mortgage
Recorded investment in loans
Total			13,775	17,492
Residential real estate \| Pass \| Real estate loan, first mortgage
Recorded investment in loans
Total			1,644,974	1,995,945
Residential real estate \| Pass \| Real estate loan, second mortgage
Recorded investment in loans
Total			13,539	16,806
Residential real estate \| Substandard \| Real estate loan, first mortgage
Recorded investment in loans
Total			45,249	19,995
Residential real estate \| Substandard \| Real estate loan, second mortgage
Recorded investment in loans
Total			236	686
Residential real estate \| Doubtful \| Real estate loan, first mortgage
Recorded investment in loans
Total			233	94
Nonaccrual residential real estate loans
Recorded investment in loans
Loans and Leases Receivable, Net Amount				19,375
Commercial real estate
Recorded investment in loans
Total			201,240	259,958
Loans and Leases Receivable, Net Amount			53,628
Commercial real estate \| Real estate loan, Retail
Recorded investment in loans
Total			19,574	16,200
Commercial real estate \| Real estate loan, Multifamily
Recorded investment in loans
Total			96,960	79,209
Commercial real estate \| Real estate loan, Offices
Recorded investment in loans
Total			12,382	27,061
Commercial real estate \| Real estate loan, Industrial
Recorded investment in loans
Total			7,320	13,186
Commercial real estate \| Real estate loan, Other
Recorded investment in loans
Total			50,783	56,667
Commercial real estate \| Hotels/SROs
Recorded investment in loans
Total			14,221	67,635
Commercial real estate \| Pass \| Real estate loan, Retail
Recorded investment in loans
Total			18,846	13,599
Commercial real estate \| Pass \| Real estate loan, Multifamily
Recorded investment in loans
Total			75,543	55,772
Commercial real estate \| Pass \| Real estate loan, Offices
Recorded investment in loans
Total			10,413	12,014
Commercial real estate \| Pass \| Real estate loan, Industrial
Recorded investment in loans
Total			7,320	5,867
Commercial real estate \| Pass \| Real estate loan, Other
Recorded investment in loans
Total			48,996	43,193
Commercial real estate \| Pass \| Hotels/SROs
Recorded investment in loans
Total			8,205	9,115
Commercial real estate \| Special Mention \| Real estate loan, Retail
Recorded investment in loans
Total			728	1,572
Commercial real estate \| Special Mention \| Real estate loan, Multifamily
Recorded investment in loans
Total			8,104	14,238
Commercial real estate \| Special Mention \| Real estate loan, Offices
Recorded investment in loans
Total				1,623
Commercial real estate \| Special Mention \| Real estate loan, Other
Recorded investment in loans
Total			1,692	7,732
Commercial real estate \| Special Mention \| Hotels/SROs
Recorded investment in loans
Total				17,984
Commercial real estate \| Substandard \| Real estate loan, Retail
Recorded investment in loans
Total				1,029
Commercial real estate \| Substandard \| Real estate loan, Multifamily
Recorded investment in loans
Total			13,313	9,199
Commercial real estate \| Substandard \| Real estate loan, Offices
Recorded investment in loans
Total			1,969	13,424
Commercial real estate \| Substandard \| Real estate loan, Industrial
Recorded investment in loans
Total				7,319
Commercial real estate \| Substandard \| Real estate loan, Other
Recorded investment in loans
Total			95	5,742
Commercial real estate \| Substandard \| Hotels/SROs
Recorded investment in loans
Total			6,016	40,536
Construction
Recorded investment in loans
Total			106,759	206,581
Construction \| Pass
Recorded investment in loans
Total			67,254	152,577
Construction \| Special Mention
Recorded investment in loans
Total			17,226	14,234
Construction \| Substandard
Recorded investment in loans
Total			16,348	32,850
Construction \| Doubtful
Recorded investment in loans
Total			5,931	6,920
Commercial lines of credit
Recorded investment in loans
Total			363	6,671
Commercial lines of credit \| Private banking
Recorded investment in loans
Total			116	2,409
Commercial lines of credit \| C&I lending
Recorded investment in loans
Total			247	4,262
Commercial lines of credit \| Pass \| Private banking
Recorded investment in loans
Total			116	124
Commercial lines of credit \| Pass \| C&I lending
Recorded investment in loans
Total			236	3,573
Commercial lines of credit \| Special Mention \| Private banking
Recorded investment in loans
Total				2,285
Commercial lines of credit \| Special Mention \| C&I lending
Recorded investment in loans
Total			11
Commercial lines of credit \| Substandard \| C&I lending
Recorded investment in loans
Total				689
Other consumer
Recorded investment in loans
Total			221	7
Other consumer \| Pass
Recorded investment in loans
Total			$ 221	$ 7

Leasehold Improvements and Equipment, net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Leasehold Improvements and Equipment, net
Leasehold improvements and equipment, gross	$ 26,095	$ 25,620
Less: accumulated depreciation and amortization	(18,674)	(17,108)
Leasehold improvements and equipment, net	7,421	8,512
Depreciation and amortization on leasehold improvements and equipment	1,754	1,608	$ 1,621
Leasehold improvements
Leasehold Improvements and Equipment, net
Leasehold improvements and equipment, gross	11,527	11,259
Furniture and equipment
Leasehold Improvements and Equipment, net
Leasehold improvements and equipment, gross	$ 14,568	$ 14,361
Minimum \| Furniture and equipment
Leasehold Improvements and Equipment, net
Estimated Useful Life (in years)	3
Maximum \| Furniture and equipment
Leasehold Improvements and Equipment, net
Estimated Useful Life (in years)	7

Mortgage Servicing Rights, net - Principle Balance by Category (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Mortgage Servicing Rights
Total	$ 307,783	$ 666,030
Custodial escrow balances maintained on serviced loans	5,501	6,051
FNMA
Mortgage Servicing Rights
Total	124,764	171,553
FHLB
Mortgage Servicing Rights
Total	40,209	64,661
Private investors
Mortgage Servicing Rights
Total	$ 142,810	$ 429,816

Mortgage Servicing Rights net - Activity and Related Valuation Allowance (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Mortgage servicing rights activity
Mortgage servicing rights Beginning of year	$ 7,853	$ 10,845	$ 10,733
Additions	136	713	2,964
Amortization	(4,657)	(3,705)	(2,852)
Mortgage servicing rights End of year	3,332	7,853	10,845
Valuation allowance at beginning of year	2,165	1,080	100
Additions (recoveries)	(1,555)	1,085	980
Valuation allowance at end of year	610	2,165	1,080
Mortgage servicing rights, net	2,722	5,688	9,765
Servicing fee income (loss), net of amortization of servicing rights and changes in valuation allowance	$ (1,208)	$ (1,324)	$ 238

Mortgage Servicing Rights, net - Valuation techniques (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Mortgage Servicing Rights
Fair value of mortgage servicing rights	$ 2,916	$ 5,841
Prepayment speed range	17.60%	22.50%
Weighted average life of the mortgage servicing right	52 months	43 months
Weighted average default rate	0.20%	0.20%
Minimum
Mortgage Servicing Rights
Discount rate range	9.50%	9.50%
Maximum
Mortgage Servicing Rights
Discount rate range	12.00%	12.00%

Deposits - Time deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Deposits
Interest-bearing time deposits	$ 891,820	$ 1,672,019
Brokered time deposits	20,109	42,751
Time deposits that meet or exceed the FDIC insurance limit of $250	$ 244,868	$ 487,340

Deposits - Scheduled maturities of time deposits (Details) $ in Thousands	Dec. 31, 2021 USD ($)
Scheduled maturities of time deposits
2022	$ 646,605
2023	189,541
2024	41,938
2025	11,107
2026	$ 2,629

FHLB Borrowings (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Federal Home Loan Bank Borrowings
Long-term fixed-rate FHLB advances	$ 150,000	$ 318,000
Minimum \| Long term
Federal Home Loan Bank Borrowings
FHLB interest rates (as a percent)	0.43%	0.43%
Maximum \| Long term
Federal Home Loan Bank Borrowings
FHLB interest rates (as a percent)	1.96%	1.96%

FHLB Borrowings - FHLB Advances (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Federal Home Loan Bank Borrowings
Additional borrowing capacity	$ 365,465	$ 365,465
Repayments of advances from Federal Home Loan Bank	157,000	168,000	$ 11,000	$ 2,540,000
Callable Option February, 2022
Federal Home Loan Bank Borrowings
Total FHLB advances	100,000	100,000
Callable Option May, 2024
Federal Home Loan Bank Borrowings
Total FHLB advances	$ 50,000	$ 50,000

FHLB Borrowings - FHLB Overdraft Line of Credit and Letters of Credit (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
FHLB Overdraft Line of Credit and Letters of Credit
FHLB line of credit agreement maximum borrowing limit	$ 50,000
FHLB overdraft line of credit average borrowings outstanding	0	$ 0
FHLB overdraft line of credit outstanding borrowings	7	$ 18
FHLB overdraft line of credit	$ 20,000
FHLB overdraft line of credit (as percent)	0.43%	0.46%
FHLB, agreement term	1 year
Standby letter of credit 1 expiring July, 2022
FHLB Overdraft Line of Credit and Letters of Credit
FHLB overdraft line of credit outstanding borrowings	$ 0
FHLB letter of credit	$ 11,500
FHLB letter of credit term	16 months
Standby letter of credit 2 expiring July, 2022
FHLB Overdraft Line of Credit and Letters of Credit
FHLB letter of credit	$ 7,500
Standby letters of credit expiring July 2024
FHLB Overdraft Line of Credit and Letters of Credit
FHLB letter of credit	$ 4,000
FHLB letter of credit term	36 months

FHLB Borrowings - Other Borrowings (Details) - Other Banks - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Other Borrowings
Maximum borrowing capacity	$ 80,000	$ 100,000
Outstanding balance	$ 0	$ 0

- Definition

The carrying value as of the balance sheet date of the current and noncurrent portions of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References + Details

Subordinated Notes, net (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
Subordinated Notes, net (Details) - USD ($) $ in Thousands	Apr. 30, 2021	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Subordinated Notes
Total		$ 65,343	$ 65,341
Interest expense		4,127	4,713	$ 4,701
Subordinated notes
Subordinated Notes
Subordinated notes (principal amount)		65,000	65,000
Unamortized note premium		343	411
Unamortized debt issuance costs			(70)
Total		$ 65,343	$ 65,341
Interest rate (as a percent)	7.00%	5.94%	7.00%
Interest expense		$ 4,127	$ 4,713	$ 4,701
Redemption price percentage of outstanding principal amount		100.00%
LIBOR \| Subordinated notes
Subordinated Notes
Variable interest rate on subordinate notes (in percent)	5.82%

Shareholders' Equity (Details) - USD ($)	1 Months Ended	12 Months Ended
Shareholders' Equity (Details) - USD ($)	May 31, 2021	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Shareholders' Equity
Preferred stock, shares authorized		10,000,000	10,000,000
Common stock, shares authorized		500,000,000	500,000,000
Common stock, par value (in dollars per share)		$ 0	$ 0
Number of votes		1
Dividends paid per common share (in dollars per share)			$ 0.01	$ 0.04
Dividends distributed			$ 499,000	$ 2,044,000
Preferred stock, shares issued		0	0
Preferred stock, shares outstanding		0	0
Shares repurchased and cancelled, value			$ 82,000	30,349,000
Proceeds from Issuance of Common Stock		$ 1,350,000
Common stock
Shareholders' Equity
Common stock, shares authorized		500,000,000
Shares repurchased and cancelled, value			$ 82,000	$ 30,349,000
Shares repurchased and canceled			10,912	3,134,806
Average repurchase price (in dollars per share)			$ 7.57	$ 9.68
Common stock authorized repurchase amount remaining		$ 19,568,000
Common stock \| Chief Executive Officer
Shareholders' Equity
Number of shares of stock issued and sold	300,000
Proceeds from Issuance of Common Stock	$ 1,350,000
Offering price (in dollars per share)	$ 4.50
Common stock \| Maximum
Shareholders' Equity
Stock repurchase program authorized amount		$ 50,000,000

Stock-based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands		12 Months Ended
	Jun. 05, 2020	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Key employee
Stock-based Compensation
Number of share instruments issued			67,361	84,889
Non-employee directors Restricted Stock Awards
Stock-based Compensation
Number of share instruments issued	300,000
Exercise price	$ 4.00
Weighted Average Exercise Price
Granted	$ 4.00
Stock options
Stock-based Compensation
Maximum term of stock awards granted		10 years
Weighted Average Remaining Contractual Term
Aggregate Intrinsic Value		$ 525
2017 Omnibus Equity Incentive Plan
Stock-based Compensation
Number of shares authorized		4,237,100
2017 Omnibus Equity Incentive Plan \| Stock options
Stock-based Compensation
Percentage of awards vesting		50.00%
Weighted average grant-date fair value			$ 1.29	$ 3.20
Fair value assumptions used in Black-Scholes option pricing model
Risk-free interest rate			0.49%	2.66%
Expected term (in years)			5 years 7 months 9 days	6 years 9 months
Expected stock price volatility			33.91%	26.26%
Dividend yield			0.10%	0.40%
Number of Shares
Outstanding at January 1, 2021		377,882
Forfeited/expired		(10,115)
Outstanding at December 31, 2021		367,767	377,882
Exercisable at December 31, 2021		226,550
Weighted Average Exercise Price
Outstanding at January 1, 2021		$ 5.61
Forfeited/expired		12.62
Outstanding at December 31, 2021		5.41	$ 5.61
Exercisable at December 31, 2021		$ 4.98
Weighted Average Remaining Contractual Term
Weighted Average Remaining Contractual Term (Years)		8 years 1 month 17 days	9 years 1 month 2 days
Weighted Average Remaining Contractual Term, Exercisable		8 years 2 months 19 days
Aggregate Intrinsic Value			$ 162
Aggregate Intrinsic Value Exercisable		$ 350
Stock-based compensation costs recognized		173	200	$ 137
Total unrecognized compensation cost - stock options		$ 31
Unrecognized compensation cost related to nonvested awards, expected to be recognized over a weighted-average period		9 months 29 days
2017 Omnibus Equity Incentive Plan \| Stock Options granted prior to 2020 \| Awards vesting at the end of the third year
Stock-based Compensation
Percentage of awards vesting		50.00%
2017 Omnibus Equity Incentive Plan \| Stock Options granted prior to 2020 \| Awards vesting at the end of the fourth year
Stock-based Compensation
Percentage of awards vesting		50.00%
2017 Omnibus Equity Incentive Plan \| Stock Options granted starting in 2020
Stock-based Compensation
Vesting period		3 years
2017 Omnibus Equity Incentive Plan \| Stock Options granted starting in 2020 \| Awards vesting on the first anniversary of the grant date
Stock-based Compensation
Percentage of awards vesting		33.33%
2017 Omnibus Equity Incentive Plan \| Stock Options granted starting in 2020 \| Awards vesting at the end of the second year
Stock-based Compensation
Percentage of awards vesting		33.33%
2017 Omnibus Equity Incentive Plan \| Stock Options granted starting in 2020 \| Awards vesting at the end of the third year
Stock-based Compensation
Percentage of awards vesting		33.33%
2017 Omnibus Equity Incentive Plan \| Restricted Stock
Weighted Average Remaining Contractual Term
Shares withheld in order to pay employee tax liabilities on vested awards		8,536
Stock-based compensation costs recognized		$ 453	$ 134	$ 360
Employee tax liability associated with restricted stock awards the vested during the period		46
Total unrecognized compensation cost - restricted stock awards		$ 1,096
Unrecognized compensation cost related to nonvested awards, expected to be recognized over a weighted-average period		2 years 10 days
Number of Shares
Nonvested, Opening balance		137,936
Granted		252,123
Vested		(31,906)
Forfeited		(64,516)
Nonvested, Ending balance		293,637	137,936
Weighted Average Grant Date Fair Value
Nonvested, Opening balance		$ 7.90
Granted		4.99
Vested		7.67
Forfeited		6.14
Nonvested, Ending balance		$ 5.81	$ 7.90
Grant Date Fair Value of Restricted Stock that Vested During the year
Fair value of restricted stock awards vested		$ 249	$ 100
2017 Omnibus Equity Incentive Plan \| Restricted Stock \| Key employee
Stock-based Compensation
Number of share instruments issued		207,123	151,874
2017 Omnibus Equity Incentive Plan \| Restricted Stock \| Non-employee directors Restricted Stock Awards
Stock-based Compensation
Number of share instruments issued		45,000
2020 Omnibus Equity Incentive Plan
Stock-based Compensation
Number of shares authorized		3,979,661
2020 Omnibus Equity Incentive Plan \| Restricted Stock
Stock-based Compensation
Vesting period		3 years
2020 Omnibus Equity Incentive Plan \| Restricted Stock \| Awards vesting on the first anniversary of the grant date
Stock-based Compensation
Percentage of awards vesting		33.33%
2020 Omnibus Equity Incentive Plan \| Restricted Stock \| Awards vesting at the end of the second year
Stock-based Compensation
Percentage of awards vesting		33.33%
2020 Omnibus Equity Incentive Plan \| Restricted Stock \| Awards vesting at the end of the third year
Stock-based Compensation
Percentage of awards vesting		33.33%

Regulatory Capital Requirements - Actual and minimum required capital amounts and ratios and Dividend Restrictions (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Regulatory Capital Requirements
Capital conservation buffer (as a percent)	2.50%
Required Common Equity capital adequacy with capital conservation buffer	0.070
Required Tier 1 capital adequacy with capital conservation buffer	0.085
Required Total capital adequacy with capital conservation buffer	0.105
Total adjusted capital to risk-weighted assets, Amount
Actual	$ 414,870	$ 407,733
For Capital Adequacy Purposes	$ 113,951	$ 144,466
Total adjusted capital to risk-weighted assets, Ratio
Actual	0.2902	0.2258
For Capital Adequacy Purposes	0.0800	0.0800
Tier 1 (core) capital to risk-weighted assets, Amount
Actual	$ 344,247	$ 319,204
For Capital Adequacy Purposes	$ 85,463	$ 108,350
Tier 1 (core) capital to risk-weighted assets, Ratio
Actual	0.2408	0.1768
For Capital Adequacy Purposes	0.0600	0.0600
Common Equity Tier 1 (CET1), Amount
Actual	$ 344,247	$ 319,204
For Capital Adequacy Purposes	$ 64,097	$ 81,262
Common Equity Tier 1 (CET1), Ratio
Actual	0.2408	0.1768
For Capital Adequacy Purposes	0.0450	0.0450
Tier 1 (core) capital to adjusted tangible assets, Amount
Actual	$ 344,247	$ 319,204
For Capital Adequacy Purposes	$ 120,039	$ 158,067
Tier 1 (core) capital to adjusted tangible assets, Leverage Ratio
Actual	0.1147	0.0808
For Capital Adequacy Purposes	0.0400	0.0400
Dividend Restrictions
Minimum percentage of assets be maintained as per Qualified Thrift Lender ("QTL") test	65.00%
Bank
Total adjusted capital to risk-weighted assets, Amount
Actual	$ 400,836	$ 386,237
For Capital Adequacy Purposes	113,868	143,339
To be Well Capitalized	$ 142,335	$ 179,174
Total adjusted capital to risk-weighted assets, Ratio
Actual	0.2807	0.2156
For Capital Adequacy Purposes	0.0800	0.0800
To be Well Capitalized	0.1000	0.1000
Tier 1 (core) capital to risk-weighted assets, Amount
Actual	$ 382,509	$ 363,224
For Capital Adequacy Purposes	85,401	107,504
To be Well Capitalized	$ 113,868	$ 143,339
Tier 1 (core) capital to risk-weighted assets, Ratio
Actual	0.2679	0.2027
For Capital Adequacy Purposes	0.0600	0.0600
To be Well Capitalized	0.0800	0.0800
Common Equity Tier 1 (CET1), Amount
Actual	$ 382,509	$ 363,224
For Capital Adequacy Purposes	64,051	80,628
To be Well Capitalized	$ 92,518	$ 116,463
Common Equity Tier 1 (CET1), Ratio
Actual	0.2679	0.2027
For Capital Adequacy Purposes	0.0450	0.0450
To be Well Capitalized	0.0650	0.0650
Tier 1 (core) capital to adjusted tangible assets, Amount
Actual	$ 382,509	$ 363,224
For Capital Adequacy Purposes	119,859	157,954
To be Well Capitalized	$ 149,824	$ 197,442
Tier 1 (core) capital to adjusted tangible assets, Leverage Ratio
Actual	0.1277	0.0920
For Capital Adequacy Purposes	0.0400	0.0400
To be Well Capitalized	0.0500	0.0500

Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Numerator:
Net loss	$ 23,390	$ (12,967)	$ 29,248
Denominator:
Weighted average common shares outstanding, basic	50,049,902	49,840,882	51,115,986
Weighted average effect of potentially dilutive common shares:
Weighted average common shares outstanding, diluted	50,139,310	49,840,882	51,127,879
Income (loss) per share:
Income (loss) per share, basic	$ 0.47	$ (0.26)	$ 0.57
Income (loss) per share, diluted	$ 0.47	$ (0.26)	$ 0.57
Common stock
Income (loss) per share:
Securities excluded from the computation of weighted average diluted shares outstanding as inclusion of such items would be anti-dilutive	147,964	525,855	195,931
Common stock \| Stock options
Weighted average effect of potentially dilutive common shares:
Incremental shares from share-based compensation	55,060
Income (loss) per share:
Securities excluded from the computation of weighted average diluted shares outstanding as inclusion of such items would be anti-dilutive	69,546	359,234	167,255
Common stock \| Restricted Stock
Weighted average effect of potentially dilutive common shares:
Incremental shares from share-based compensation	34,348		11,893
Income (loss) per share:
Securities excluded from the computation of weighted average diluted shares outstanding as inclusion of such items would be anti-dilutive	78,418	166,621	28,676

Employee Benefit Plans (Details) $ in Thousands	12 Months Ended
Employee Benefit Plans (Details) $ in Thousands	Dec. 31, 2021 USD ($) employee	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Employee Benefit Plans
Employer matching contribution, as a percent of employee's contribution	100.00%
Percentage of employee's contribution or deferred contribution that will be matched by employer	3.00%
Percentage of employee's base salary that will be matched by employer	3.00%
Maximum percentage of additional contribution in-excess of employee match	1.00%
Amount of contributions to the plan	$ 935	$ 256	$ 758
Executive Incentive Retirement Plan Agreement
Employee Benefit Plans
Number of employees retired \| employee	2
Number of employees \| employee	6
Retirement obligation liability	$ 983	3,016
Retirement benefit plan expense, net of forfeitures	(470)	(141)	290
Spilt Dollar Life Insurance Agreement
Employee Benefit Plans
Postretirement benefit estimated present value	$ 4,216	$ 4,347
Retirement benefit plan, benefit payments			$ 31
Annual matching contribution
Employee Benefit Plans
Employer matching contribution, as a percent of employee's contribution	100.00%
Percentage of employee's contribution or deferred contribution that will be matched by employer	6.00%
Percentage of employee's eligible compensation that will be match by employer	6.00%

Fair Values of Financial Instruments - Assets measured at fair value on a recurring basis (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Available for sale debt securities:
Available for sale debt securities, at fair value	$ 308,657	$ 299,594
Equity securities
Equity securities	4,976	5,118
U.S. Treasury securities
Available for sale debt securities:
Available for sale debt securities, at fair value		138,997
U.S. Treasury and Agency securities
Available for sale debt securities:
Available for sale debt securities, at fair value	122,168
U.S. Treasury and Agency securities \| Recurring
Available for sale debt securities:
Available for sale debt securities, at fair value	122,168	138,997
U.S. Treasury and Agency securities \| Level 1 \| Recurring
Available for sale debt securities:
Available for sale debt securities, at fair value	48,827	40,192
U.S. Treasury and Agency securities \| Level 2 \| Recurring
Available for sale debt securities:
Available for sale debt securities, at fair value	73,341	98,805
Mortgage-backed securities
Available for sale debt securities:
Available for sale debt securities, at fair value	49,437	33,814
Mortgage-backed securities \| Recurring
Available for sale debt securities:
Available for sale debt securities, at fair value	49,437	33,814
Mortgage-backed securities \| Level 2 \| Recurring
Available for sale debt securities:
Available for sale debt securities, at fair value	49,437	33,814
Collateralized mortgage obligations
Available for sale debt securities:
Available for sale debt securities, at fair value	136,849	126,596
Collateralized mortgage obligations \| Recurring
Available for sale debt securities:
Available for sale debt securities, at fair value	136,849	126,596
Collateralized mortgage obligations \| Level 2 \| Recurring
Available for sale debt securities:
Available for sale debt securities, at fair value	136,849	126,596
Collateralized debt obligations
Available for sale debt securities:
Available for sale debt securities, at fair value	203	187
Collateralized debt obligations \| Recurring
Available for sale debt securities:
Available for sale debt securities, at fair value	203	187
Collateralized debt obligations \| Level 3 \| Recurring
Available for sale debt securities:
Available for sale debt securities, at fair value	203	187
Equity securities \| Recurring
Equity securities
Equity securities	4,976	5,118
Equity securities \| Level 1 \| Recurring
Equity securities
Equity securities	$ 4,976	$ 5,118

Fair Values of Financial Instruments - Reconciliation and income statement classification using Level 3 inputs (Details) - Collateralized debt obligations - Recurring - Level 3 - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Reconciliation and income statement classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3)
Balance of recurring Level 3 assets at beginning of period	$ 187	$ 199
Included in other comprehensive income (loss)	19	(10)
Principal maturities/settlements	(3)	(2)
Balance of recurring Level 3 assets at end of period	203	187
Investment income
Unrealized losses on investments	8	27
Investment Income, Dividend	$ 7	$ 5

Fair Values of Financial Instruments - Assets Measured at Fair Value on a Non Recurring Basis and Fair Value of Financial Instruments (Details) $ in Thousands	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Financial Assets
Interest-bearing time deposits with other banks	$ 1,183	$ 7,021
Financial Liabilities
Interest-bearing Deposit Liabilities	$ 2,197,975	3,066,004
Accrued Interest [Member]
Financial Liabilities
Interest-bearing Deposit Liabilities		$ 25,496
Impaired loans, Commercial real estate \| Weighted Average \| Level 3 \| Sales comparison approach \| Adjustments for differences between the comparable sales and income data for similar loans and collateral underlying such loans
Fair value of financial assets and liabilities
Assets measured at fair value, measurement input		0.36
Nonrecurring \| Impaired loans, Commercial real estate \| Level 3 \| Sales comparison approach
Fair value of financial assets and liabilities
Assets measured at fair value on a non-recurring basis		$ 8,240
Nonrecurring \| Impaired loans, Commercial real estate \| Weighted Average \| Level 3 \| Sales comparison approach \| Adjustments for differences between the comparable sales and income data for similar loans and collateral underlying such loans
Fair value of financial assets and liabilities
Assets measured at fair value, measurement input	0.15
Nonrecurring \| Residential real estate
Fair value of financial assets and liabilities
Assets measured at fair value on a non-recurring basis	$ 86
Nonrecurring \| Residential real estate \| Level 3
Fair value of financial assets and liabilities
Assets measured at fair value on a non-recurring basis	86
Nonrecurring \| Residential real estate \| Level 3 \| Sales comparison approach
Fair value of financial assets and liabilities
Assets measured at fair value on a non-recurring basis	$ 86
Nonrecurring \| Residential real estate \| Maximum \| Level 3 \| Discounted cash flow \| Discount rate
Fair value of financial assets and liabilities
Assets measured at fair value, measurement input	0.120
Nonrecurring \| Commercial real estate loans held for sale
Fair value of financial assets and liabilities
Assets measured at fair value on a non-recurring basis	$ 53,628
Nonrecurring \| Commercial real estate loans held for sale \| Level 2
Fair value of financial assets and liabilities
Assets measured at fair value on a non-recurring basis	$ 53,628
Nonrecurring \| Mortgage loans held for sale
Fair value of financial assets and liabilities
Assets measured at fair value on a non-recurring basis		19,375
Nonrecurring \| Mortgage loans held for sale \| Level 2
Fair value of financial assets and liabilities
Assets measured at fair value on a non-recurring basis		19,375
Nonrecurring \| Mortgage loans held for sale \| Maximum \| Level 3 \| Discounted cash flow \| Prepayment speed
Fair value of financial assets and liabilities
Assets measured at fair value, measurement input	0.371
Nonrecurring \| Mortgage servicing rights
Fair value of financial assets and liabilities
Assets measured at fair value on a non-recurring basis	$ 2,052	5,175
Nonrecurring \| Mortgage servicing rights \| Level 3
Fair value of financial assets and liabilities
Assets measured at fair value on a non-recurring basis	2,052	5,175
Nonrecurring \| Mortgage servicing rights \| Level 3 \| Discounted cash flow
Fair value of financial assets and liabilities
Assets measured at fair value on a non-recurring basis	$ 2,052	$ 5,175
Nonrecurring \| Mortgage servicing rights \| Maximum \| Level 3 \| Discounted cash flow \| Discount rate
Fair value of financial assets and liabilities
Assets measured at fair value, measurement input		0.120
Nonrecurring \| Mortgage servicing rights \| Maximum \| Level 3 \| Discounted cash flow \| Prepayment speed
Fair value of financial assets and liabilities
Assets measured at fair value, measurement input		0.370
Nonrecurring \| Mortgage servicing rights \| Maximum \| Level 3 \| Discounted cash flow \| Default rate
Fair value of financial assets and liabilities
Assets measured at fair value, measurement input	0.002	0.002
Nonrecurring \| Mortgage servicing rights \| Minimum \| Level 3 \| Discounted cash flow \| Discount rate
Fair value of financial assets and liabilities
Assets measured at fair value, measurement input	0.095	0.095
Nonrecurring \| Mortgage servicing rights \| Minimum \| Level 3 \| Discounted cash flow \| Prepayment speed
Fair value of financial assets and liabilities
Assets measured at fair value, measurement input	0.105
Nonrecurring \| Mortgage servicing rights \| Minimum \| Level 3 \| Discounted cash flow \| Default rate
Fair value of financial assets and liabilities
Assets measured at fair value, measurement input	0.001	0.001
Nonrecurring \| Mortgage servicing rights \| Weighted Average \| Level 3 \| Discounted cash flow \| Discount rate
Fair value of financial assets and liabilities
Assets measured at fair value, measurement input	0.110	0.116
Nonrecurring \| Mortgage servicing rights \| Weighted Average \| Level 3 \| Discounted cash flow \| Prepayment speed
Fair value of financial assets and liabilities
Assets measured at fair value, measurement input	0.197	0.237
Nonrecurring \| Mortgage servicing rights \| Weighted Average \| Level 3 \| Discounted cash flow \| Default rate
Fair value of financial assets and liabilities
Assets measured at fair value, measurement input	0.002	0.002
Nonrecurring \| Construction
Fair value of financial assets and liabilities
Assets measured at fair value on a non-recurring basis		$ 5,015
Nonrecurring \| Construction \| Level 3
Fair value of financial assets and liabilities
Assets measured at fair value on a non-recurring basis		5,015
Nonrecurring \| Construction \| Weighted Average \| Level 3 \| Sales comparison approach \| Adjustments for differences between the comparable sales and income data for similar loans and collateral underlying such loans
Fair value of financial assets and liabilities
Assets measured at fair value on a non-recurring basis		$ 5,015
Nonrecurring \| Construction \| Weighted Average \| Level 3 \| Hybrid of sales comparison and income capitalization approaches \| Adjustments for differences between the comparable sales and income data for similar loans and collateral underlying such loans
Fair value of financial assets and liabilities
Assets measured at fair value, measurement input		0.15
Nonrecurring \| Commercial real estate
Fair value of financial assets and liabilities
Assets measured at fair value on a non-recurring basis		$ 8,240
Nonrecurring \| Commercial real estate \| Level 3
Fair value of financial assets and liabilities
Assets measured at fair value on a non-recurring basis		8,240
Carrying value per balance sheet
Financial Assets
Cash and due from banks	$ 411,676	998,497
Interest-bearing time deposits with other banks	1,183	7,021
Mortgage loans held for sale	11,359	2,909
Loans, net	1,956,180	2,434,356
Financial Liabilities
Time deposits	891,820	1,672,019
Federal Home Loan Bank borrowings	150,000	318,000
Subordinated notes, net	65,343	65,341
Estimated fair value
Financial Assets
Cash and due from banks	411,676	998,497
Interest-bearing time deposits with other banks	1,183	7,021
Mortgage loans held for sale	11,809	3,052
Loans, net	2,025,409	2,521,874
Financial Liabilities
Time deposits	894,049	1,683,516
Federal Home Loan Bank borrowings	152,560	328,150
Subordinated notes, net	65,073	65,753
Estimated fair value \| Level 1
Financial Assets
Cash and due from banks	411,676	998,497
Interest-bearing time deposits with other banks	1,183	7,021
Estimated fair value \| Level 2
Financial Assets
Mortgage loans held for sale	11,809	3,052
Financial Liabilities
Time deposits	894,049	1,683,516
Federal Home Loan Bank borrowings	152,560	328,150
Subordinated notes, net	65,073	65,753
Estimated fair value \| Level 3
Financial Assets
Loans, net	$ 2,025,409	$ 2,521,874

Income Taxes - Components of income tax (benefit) expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Current:
Federal	$ 4,814	$ 4,489	$ 15,341
State	1,429	1,908	6,354
Total current expense	6,243	6,397	21,695
Deferred:
Federal	2,088	(8,373)	(3,995)
State	1,312	(3,933)	(2,057)
Total deferred expense (benefit)	3,400	(12,306)	(6,052)
Total income tax expense (benefit)	$ 9,643	$ (5,909)	$ 15,643

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Income Taxes - Reconciliation of income tax rate (Details)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Reconciliation of U.S. federal statutory tax rate and effective income tax rate
U.S. federal statutory rate (as a percentage)	21.00%	21.00%	21.10%
Effect of:
State taxes, net of federal benefit (as a percentage)	6.60%	8.50%	4.00%
Non-deductible items	1.50%		9.50%
Income on cash surrender value of bank-owned life insurance (as a percentage)	(0.40%)	0.60%	(0.20%)
Other, net (as a percentage)	0.50%	1.20%	0.40%
Effective tax rate (as a percentage)	29.20%	31.30%	34.80%

Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Deferred tax assets:
Allowance for loan losses	$ 15,557	$ 20,185
Operating lease liabilities	5,337	5,715
Loans held for sale valuation allowance	2,180
Compensation plans	902	531
Accrued expenses	891	378
Interest on nonaccrual loans	833	686
Mortgage repurchase liability	812	2,705
State franchise tax	422	503
Supplemental retirement benefit plan	270	841
Other	709	393
Deferred Tax Assets, Gross	27,913	31,937
Less: valuation allowance	(30)
Total deferred tax assets, net of valuation allowance	27,883	31,937
Deferred tax liabilities:
Operating lease right-of-use asset	(5,003)	(5,363)
Mortgage servicing rights	(749)	(1,586)
Other	(705)	(662)
Total deferred tax liabilities	(6,457)	(7,611)
Deferred tax asset, net	$ 21,426	$ 24,326

Income Taxes - Capital loss carryforward and unrecognized tax benefits (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Capital loss carryforward and unrecognized tax benefits
Capital loss carryforward	$ 1,006
Unrecognized Tax Benefits	0
Deferred tax asset	27,883	$ 31,937
Valuation allowance	(30)
Capital loss carryforward
Capital loss carryforward and unrecognized tax benefits
Deferred tax asset	$ 277

Related Party Transactions (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Board of Directors \| Charitable donation to foundation
Related party transactions
Amount of related party transaction, expense	$ 375	$ 900
Controlling Shareholders \| Data processing and programming services provided
Related party transactions
Amount of related party transaction, revenue	$ 79	$ 105

- Definition

Amount of revenue, fees and commissions earned from transactions between (a) a parent company and its subsidiaries; (b) subsidiaries of a common parent; (c) an entity and trusts for the benefit of employees, for example, but not limited to, pension and profit-sharing trusts that are managed by or under the trusteeship of the entity's management; (d) an entity and its principal, owners, management, or members of their immediate families; and (e) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iv))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442552-122756

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 946
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07.1(c))
-URI http://asc.fasb.org/extlink&oid=120401555&loc=SL114874292-224272

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iii)(B))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442526-122756

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(C))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442552-122756

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(5))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442526-122756

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(5))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442552-122756

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iv))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442526-122756

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.1(e))
-URI http://asc.fasb.org/extlink&oid=123367319&loc=SL114868664-224227

+ Details

Operating Leases (Details) - USD ($) $ in Thousands	12 Months Ended
Operating Leases (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Operating Leases
Lessee, operating lease, existence of option to extend [true false]	true
Components of lease expense
Operating lease costs	$ 4,377	$ 4,554	$ 4,507
Variable lease cost	1,136	959	1,235
Total	$ 5,513	5,513	5,742
Minimum
Operating Leases
Renewal term (in years)	5 years
Controlling Shareholders
Operating Leases
Payments under leases		203	236
Sublease income	$ 439	$ 277	$ 274

Operating Leases - Maturity of lease liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Maturities of lease liabilities
2022	$ 4,110
2023	3,899
2024	3,788
2025	3,260
2026	2,491
Thereafter	3,508
Total lease payments	21,056
Less: future interest costs	(1,656)
Present value of lease liabilities	$ 19,400	$ 20,497

Operating Leases - Other Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$ 4,355	$ 4,478	$ 4,307
Weighted average remaining lease term	5 years 6 months 10 days	6 years 7 months 6 days	6 years 9 months 29 days
Weighted average discount rate	2.94%	3.16%	3.54%

Commitments and Contingencies - Unfunded Commitments to Extend Credit and Standby Letters of Credit (Details)	3 Months Ended	12 Months Ended
	Dec. 31, 2020 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Jul. 18, 2020 USD ($)	Dec. 31, 2019 USD ($)
Commitments and Contingencies
Loss Contingency Accrual Reversal Of Provision			$ 12,500,000
Threshold period for responding to Demand letter		90 days
Loss contingency from legal proceedings
Commitments and Contingencies
Number of law firms				2
Loss contingency from class action lawsuit
Commitments and Contingencies
Full amount of the settlement covered by the Company's applicable insurance policies		$ 12,500,000
Loss Contingency Accrual Reversal Of Provision			12,500,000
Loss contingency from Internal review of Advantage Loan Program
Commitments and Contingencies
Liability for contingent losses	$ 27,500,000	15,000,000	27,500,000		$ 25,000,000
Loss Contingency Accrual, Period Increase (Decrease)	2,500,000
Unfunded Commitments to Extend Credit \| Residential real estate
Commitments and Contingencies
Outstanding commitments regarding fixed rate loans		4,029,000
Outstanding commitments with varying interest rates		$ 19,581,000
Maturity period for variable interest loans		30 years
Unfunded Commitments to Extend Credit \| Residential real estate \| Minimum
Commitments and Contingencies
Fixed interest rate (as a percent)		2.75%
Maturity period		15 years
Variable interest rate (as a percentage)		3.00%
Unfunded Commitments to Extend Credit \| Residential real estate \| Maximum
Commitments and Contingencies
Fixed interest rate (as a percent)		3.25%
Maturity period		30 years
Variable interest rate (as a percentage)		3.625%
Commitments to make loans
Commitments and Contingencies
Commitments to make loans	40,331,000	$ 23,610,000	40,331,000
Unused lines of credit
Commitments and Contingencies
Unused lines of credit	140,665,000	$ 45,805,000	140,665,000
Unused lines of credit \| Minimum
Commitments and Contingencies
Variable interest rate (as a percentage)		3.25%
Maturity period for variable interest loans		1 month
Unused lines of credit \| Maximum
Commitments and Contingencies
Variable interest rate (as a percentage)		7.00%
Maturity period for variable interest loans		24 years
Unused lines of credit \| Residential real estate
Commitments and Contingencies
Unused lines of credit		$ 10,671,000
Unused lines of credit \| Construction
Commitments and Contingencies
Unused lines of credit		35,134,000
Standby letters of credit
Commitments and Contingencies
Unused lines of credit	$ 24,000	$ 24,000	$ 24,000

Commitments and Contingencies - Advantage Loan Program Loans Sold (Details) $ in Thousands	1 Months Ended	3 Months Ended	12 Months Ended
	May 31, 2020 USD ($) item	Jun. 30, 2020 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Commitments and Contingencies
Mortgage loan repurchase liability			$ 2,954	$ 9,699	$ 7,823
Unpaid principal balance			1,956,266	2,434,356
Outstanding principal balance of loans repurchased				69,638
Other Noninterest Expense			7,486	6,270	8,706
Advantage Loan Program
Commitments and Contingencies
Mortgage loan repurchase liability				2,527	$ 7,823
Unpaid principal balance			142,810	429,816
Percentage of loans offered to each of investors to repurchase	100.00%
Outstanding principal balance of loans repurchased	$ 38,704	$ 30,934	173,829	69,638
Number Of Loan Pools Negotiated To Be Repurchased. \| item	2
Disposition of mortgage servicing rights	$ 428	361
Other Noninterest Expense	$ 136	135
Loss charged against mortgage repurchase liability		$ 651
Advantage Loan Program loans repurchased
Commitments and Contingencies
Unpaid principal balance			173,829
Disposition of mortgage servicing rights			2,381
Loss charged against mortgage repurchase liability			5,511
Residential real estate
Commitments and Contingencies
Mortgage loan repurchase liability			2,954	9,699
Unpaid principal balance			$ 237,049	$ 562,139

Commitments and Contingencies - Mortgage Repurchase Liability (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Mortgage repurchase liability:
Balance, beginning of period	$ 9,699	$ 7,823
Net provision (recovery)	(1,234)	2,527	$ 7,823
Loss on loan repurchases	(5,511)	(651)
Balance, end of the period	2,954	9,699	7,823
Advantage Loan Program
Mortgage repurchase liability:
Balance, beginning of period	$ 2,527	7,823
Balance, end of the period		$ 2,527	$ 7,823

Commitments and Contingencies - Additional pool of ALPL with specific time ranges (Details) $ in Thousands	Dec. 31, 2021 USD ($)
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Outstanding Principal Balance	$ 73,017
February 28, 2022 - February 28, 2023
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Outstanding Principal Balance	15,164
May 21, 2022 - May 21, 2023
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Outstanding Principal Balance	13,874
July 25, 2022 - July 25, 2023
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Outstanding Principal Balance	17,211
Present - July 22, 2023
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Outstanding Principal Balance	$ 26,768

Condensed Financial Information of Sterling Bancorp, Inc. (Parent Only) - CONDENSED BALANCE SHEETS (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
ASSETS
Other assets	$ 15,407	$ 22,736
Total assets	2,876,830	3,914,045
Liabilities:
Subordinated notes, net	65,343	65,341
Total liabilities	2,533,203	3,594,454
Total shareholders' equity	343,627	319,591	$ 332,614	$ 335,057
Total liabilities and shareholders' equity	2,876,830	3,914,045
Parent company \| Reportable legal entities
ASSETS
Cash held at Bank	26,905	20,952
Investment in subsidiaries	381,936	363,611
Other assets	1,777	13,914
Total assets	410,618	398,477
Liabilities:
Subordinated notes, net	65,343	65,341
Other liabilities	1,648	13,545
Total liabilities	66,991	78,886
Total shareholders' equity	343,627	319,591
Total liabilities and shareholders' equity	$ 410,618	$ 398,477

Condensed Financial Information of Sterling Bancorp, Inc. (Parent Only) - CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Expenses:
Interest expense	$ 4,127	$ 4,713	$ 4,701
Income tax benefit	(9,643)	5,909	(15,643)
Net income (loss)	23,390	(12,967)	29,248
Other comprehensive income (loss)
Comprehensive income (loss)	22,106	(12,776)	29,453
Parent company \| Reportable legal entities
Expenses:
Interest expense	4,127	4,713	4,700
Provision (recovery) for contingent losses, net		(10,000)	10,000
Other	3,574	6,135	803
Total expenses	7,701	848	15,503
Loss before income tax and equity in subsidiaries loss	(7,701)	(848)	(15,503)
Income tax benefit	2,108	246	4,496
Loss before equity in subsidiaries loss	(5,593)	(602)	(11,007)
Equity in subsidiaries income (loss)	28,983	(12,365)	40,255
Net income (loss)	23,390	(12,967)	29,248
Other comprehensive income (loss)
Equity in other comprehensive income (loss) of subsidiaries	(1,284)	191	205
Comprehensive income (loss)	$ 22,106	$ (12,776)	$ 29,453

Condensed Financial Information of Sterling Bancorp, Inc. (Parent Only) - CONDENSED STATEMENTS OF CASH FLOWS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Cash Flows From Operating Activities
Net income (loss)	$ 23,390	$ (12,967)	$ 29,248
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Other	468	162	613
Change in operating assets and liabilities:
Other assets	14,718	(8,946)	5,032
Net cash provided by operating activities	30,746	8,646	60,793
Cash Flows From Investing Activities
Capital contributed to subsidiary (Bank)		(50,000)
Dividends received from subsidiaries	10,000		19,002
Net cash provided by investing activities	352,470	223,788	7,643
Cash Flows From Financing Activities
Proceeds from issuance of shares of common stock	1,350
Repurchase of shares of common stock		(82)	(30,349)
Dividends paid to shareholders		(499)	(2,044)
Net cash provided by (used in) financing activities	(970,037)	688,244	(43,143)
Net change in cash and due from banks	(586,821)	920,678	25,293
Cash and due from banks at beginning of period	998,497	77,819	52,526
Cash and due from banks at end of period	411,676	998,497	77,819
Cash paid for:
Interest	50,751	48,270	38,196
Parent company \| Reportable legal entities
Cash Flows From Operating Activities
Net income (loss)	23,390	(12,967)	29,248
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Equity in subsidiaries (income) loss	(28,983)	12,365	(40,255)
Other	2	162	150
Change in operating assets and liabilities:
Other assets	12,137	(289)	(3,353)
Other liabilities	(11,897)	(7,452)	10,000
Net cash provided by operating activities	(5,351)	(8,181)	(4,210)
Cash Flows From Investing Activities
Capital contributed to subsidiary (Bank)		(50,000)
Dividends received from subsidiaries	10,000		19,002
Net cash provided by investing activities	10,000	(50,000)	19,002
Cash Flows From Financing Activities
Proceeds from issuance of shares of common stock	1,350
Repurchase of shares of common stock		(82)	(30,349)
Repurchase of restricted shares to pay employee tax liability	(46)
Dividends paid to shareholders		(499)	(2,044)
Net cash provided by (used in) financing activities	1,304	(581)	(32,393)
Net change in cash and due from banks	5,953	(58,762)	(17,601)
Cash and due from banks at beginning of period	20,952	79,714	97,315
Cash and due from banks at end of period	26,905	20,952	79,714
Cash paid for:
Interest	$ 4,249	$ 4,550	$ 4,550

Subsequent Events (Details) $ in Thousands		1 Months Ended
Subsequent Events (Details) $ in Thousands	Jan. 21, 2022 USD ($)	Feb. 28, 2022 USD ($)	Mar. 23, 2022	Dec. 31, 2021	Dec. 31, 2020
Subsequent Events
For Capital Adequacy Purposes				0.0800	0.0800
For Capital Adequacy Purposes				0.0600	0.0600
Total adjusted capital to risk weighted assets, Actual, Ratio				0.2902	0.2258
Common Tier 1 (CET1), Actual, Ratio				0.2408	0.1768
Tier 1 (core) capital to risk weighted assets, Actual, Ratio				0.2408	0.1768
Bank
Subsequent Events
For Capital Adequacy Purposes				0.0800	0.0800
For Capital Adequacy Purposes				0.0600	0.0600
Total adjusted capital to risk weighted assets, Actual, Ratio				0.2807	0.2156
Common Tier 1 (CET1), Actual, Ratio				0.2679	0.2027
Tier 1 (core) capital to risk weighted assets, Actual, Ratio				0.2679	0.2027
Advantage Loan Program \| If 100% Risk Weight Is Applied
Subsequent Events
For Capital Adequacy Purposes				1.00
For Capital Adequacy Purposes				1
Total adjusted capital to risk weighted assets, Actual, Ratio				0.2124
Tier 1 (core) capital to risk weighted assets, Actual, Ratio				0.1734
Advantage Loan Program \| Bank \| If 100% Risk Weight Is Applied
Subsequent Events
Total adjusted capital to risk weighted assets, Actual, Ratio				0.2055
Tier 1 (core) capital to risk weighted assets, Actual, Ratio				0.1928
Subsequent event
Subsequent Events
Plaintiff attorney's fee and expenses	$ 650
Subsequent event \| Commercial real estate
Subsequent Events
Proceeds from sale of loans held for sale		$ 49,400
Subsequent event \| Advantage Loan Program \| If 100% Risk Weight Is Applied
Subsequent Events
For Capital Adequacy Purposes			1
For Capital Adequacy Purposes			1