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Note 4 - Loans

12 Months Ended

Dec. 31, 2024

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

4. Loans

Most of the Company’s business activities are with clients located in the high-density Asian-populated areas of Southern and Northern California; New York City, New York; Houston and Dallas, Texas; Seattle, Washington; Boston, Massachusetts; Chicago, Illinois; Edison, New Jersey; Rockville, Maryland; and Las Vegas, Nevada. The Company also has loan clients in Hong Kong. The Company has no specific industry concentration, and generally its loans, when secured, are secured by real property or other collateral of the borrowers. The Company generally expects loans to be paid off from the operating profits of the borrowers, from refinancing by another lender, or through sale by the borrowers of the secured collateral.

The following table presents the composition of the Company’s loans as of December 31, 2024, and 2023, were as follows:

	*As of December 31,*
	*2024*			*2023*
	(In thousands)
Loans:
Commercial loans	$	3,098,004		$	3,305,048
Construction loans		319,649			422,647
Commercial real estate loans		10,033,830			9,729,581
Residential mortgage loans		5,689,097			5,838,747
Equity lines		229,995			245,919
Installment and other loans		5,380			6,198
Gross loans		19,375,955			19,548,140
Less:
Allowance for loan losses		(161,765	)		(154,562	)
Unamortized deferred loan fees		(10,541	)		(10,720	)
Total loans held for investment, net	$	19,203,649		$	19,382,858

Loans held for sale	$	-		$	-

The Company pledged real estate loans of $14.55 billion as of December 31, 2024, and $14.15 billion as of December 31, 2023, to the Federal Home Loan Bank of San Francisco under its blanket lien pledging program. The Company pledged commercial loans of $474.8 million as of December 31, 2024, and $388 thousand as of December 31, 2023, to the Federal Reserve Bank’s Discount Window under the Borrower-in-Custody program.

Loans serviced for others as of December 31, 2024, totaled $172.2 million and were comprised of $63.3 million of residential mortgages, $44.5 million of commercial real estate loans, $22.6 million of construction loans, and $41.8 million of commercial loans. As of December 31, 2023, loans serviced for others, totaled $203.0 million and were comprised of $70.7 million of residential mortgages, $76.1 million of commercial real estate loans, $11.8 million of construction loans and $44.4 million of commercial loans.

The Company has entered into transactions with its directors, executive officers, or principal holders of its equity securities, or the associates of such persons (“related parties”). All loans to related parties were current as of December 31, 2024, and 2023. An analysis of the activity with respect to loans to related parties for the years indicated is as follows:

	*December 31,*
	*2024*			*2023*
	(In thousands)
Balance at beginning of year	$	45,707		$	33,217
Additional loans made		100,256			20,160
Payment received		(60,715	)		(7,670	)
Balance at end of year	$	85,248		$	45,707

Non-accrual Loans

As of December 31, 2024, recorded investment in non-accrual loans totaled $169.2 million compared to $66.7 million as of December 31, 2023. The average balance of non-accrual loans was $130.1 million and $71.8 million as of December 31, 2024, and 2023, respectively. Interest recognized on non-accrual loans totaled $197 thousand, $321 thousand and $435 thousand for the years ended December 31, 2024, 2023 and 2022. For non-accrual loans, the amounts previously charged-off represent 11.7% of the contractual balances for non-accrual loans as of December 31, 2024, and 15.8% as of December 31, 2023.

As of December 31, 2024, $115.2 million of the $169.2 million of non-accrual loans were secured by real estate compared to $52.3 million of the $66.7 million of non-accrual loans that were secured by real estate as of December 31, 2023. As of December 31, 2024 and 2023, collateral-dependent non-accrual loans were secured by real estate and personal property. The Bank generally seeks to obtain current appraisals, sales contracts, or other available market price information intended to provide updated factors in evaluating potential loss. The allowance for the collateral-dependent loans is calculated based on the difference between the outstanding loan balance and the value of the collateral as determined by recent appraisals, sales contracts, or other available market price information, less cost to sell. The allowance for collateral-dependent loans varies from loan to loan based on the collateral coverage of the loan at the time of designation as non-performing. We continue to monitor the collateral coverage of these loans, based on recent appraisals, on a quarterly basis and adjust the allowance accordingly.

The following tables present the average balance and interest income recognized on non-accrual loans for the periods indicated:

	*For the year ended December 31, 2024*
	*Average Recorded Investment*		*Interest Income Recognized*
	(In thousands)
Commercial loans	$	27,236	$	1
Construction loans		17,183		—
Commercial real estate loans		66,634		196
Residential mortgage and equity lines		19,073		—
Installment and other loans		—		—
Total	$	130,126	$	197

	*For the year ended December 31, 2023*
	*Average Recorded Investment*		*Interest Income Recognized*
	(In thousands)
Commercial loans	$	18,008	$	3
Construction loans		6,336		—
Commercial real estate loans		35,742		318
Residential mortgage and equity lines		11,743		—
Installment and other loans		1		—
Total	$	71,830	$	321

The following table presents non-accrual loans and the related allowance as of December 31, 2024, and 2023:

	*As of December 31, 2024*
	*Unpaid Principal Balance*		*Recorded Investment*		*Allowance*
	(In thousands)
With no allocated allowance:
Commercial loans	$	56,022	$	53,499	$	—
Commercial real estate loans		100,316		82,936		—
Residential mortgage and equity lines		19,340		18,831		—
Subtotal	$	175,678	$	155,266	$	—
With allocated allowance:
Commercial loans	$	18,769	$	6,267	$	1,208
Commercial real estate loans		194		193		1
Residential mortgage and equity lines		7,786		7,435		29
Subtotal	$	26,749	$	13,895	$	1,238
Total non-accrual loans	$	202,427	$	169,161	$	1,238

	*As of December 31, 2023*
	*Unpaid Principal Balance*		*Recorded Investment*		*Allowance*
	(In thousands)
With no allocated allowance:
Commercial loans	$	26,310	$	14,404	$	—
Construction loans		7,736		7,736		—
Commercial real estate loans		41,725		32,030		—
Residential mortgage and equity lines		12,957		12,511		—
Subtotal	$	88,728	$	66,681	$	—
With allocated allowance:
Commercial loans	$	—	$	—	$	—
Commercial real estate loans		—		—		—
Residential mortgage and equity lines		—		—		—
Subtotal	$	—	$	—	$	—
Total non-accrual loans	$	88,728	$	66,681	$	—

The following table is a summary of non-accrual loans as of December 31, 2024, 2023, and 2022 and the related net interest foregone for the years then ended:

	*As of December 31,*
	*2024*		*2023*		*2022*
	(In thousands)
Non-accrual portfolio loans	$	169,161	$	66,681	$	68,854
Contractual interest due	$	15,275	$	6,270	$	4,620
Interest recognized		197		321		435
Net interest foregone	$	15,078	$	5,949	$	4,185

The following tables present the aging of the loan portfolio by type as of December 31, 2024, and December 31, 2023:

	*As of December 31, 2024*
	*30-59 Days Past Due*		*60-89 Days Past Due*		*90 Days or More Past Due*		*Non-accrual Loans*		*Total Past Due*		*Loans Not Past Due*		*Total*
Type of Loans:	(In thousands)
Commercial loans	$	25,164	$	275	$	2,590	$	59,767	$	87,796	$	3,010,208	$	3,098,004
Construction loans		5,334		—		—		—		5,334		314,315		319,649
Commercial real estate loans		16,525		13,934		1,460		83,128		115,047		9,918,783		10,033,830
Residential mortgage loans and equity lines		39,018		6,651		—		26,266		71,935		5,847,157		5,919,092
Installment and other loans		—		—		—		—		—		5,380		5,380
Total loans	$	86,041	$	20,860	$	4,050	$	169,161	$	280,112	$	19,095,843	$	19,375,955

	*As of December 31, 2023*
	*30-59 Days Past Due*		*60-89 Days Past Due*		*90 Days or More Past Due*		*Non-accrual Loans*		*Total Past Due*		*Loans Not Past Due*		*Total*
Type of Loans:	(In thousands)
Commercial loans	$	11,771	$	7,770	$	508	$	14,404	$	34,453	$	3,270,595	$	3,305,048
Construction loans		25,389		22,998		—		7,736		56,123		366,524		422,647
Commercial real estate loans		27,900		1,503		6,649		32,030		68,082		9,661,499		9,729,581
Residential mortgage loans and equity lines		59,606		6,670		—		12,511		78,787		6,005,879		6,084,666
Installment and other loans		32		—		—		—		32		6,166		6,198
Total loans	$	124,698	$	38,941	$	7,157	$	66,681	$	237,477	$	19,310,663	$	19,548,140

The Company has adopted ASU 2022-02, “Financial Instruments – Troubled Debt Restructurings and Vintage Disclosures” effective January 1, 2023. As part of the adoption, the Company has elected to apply the pending content prospectively and the practical expedient to exclude the accrued interest receivable balance from the disclosed amortized cost basis of loan modifications to debtors experiencing financial difficulty, consistent with our Allowance for Credit Losses ("ACL") approach discussed further below in this footnote.

Under this guidance on loan modifications made to borrowers experiencing financial difficulty, when a loan held for investment is modified and is considered to be a continuation of the original loan, the Company uses the post-modification contractual rate to derive the effective interest rate when using a discounted cash flow method to determine the allowance for credit loss.

The amendments in this guidance require that an entity evaluate whether the modification represents a new loan or a continuation of an existing loans.

Under the prior TDR guidance, a TDR is a formal modification of the terms of a loan when the lender, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower. The concessions may be granted in various forms, including a change in the stated interest rate, a reduction in the loan balance or accrued interest, or an extension of the maturity date. Although these loan modifications were considered TDRs, TDR loans that had, pursuant to the Bank’s policy, performed under the restructured terms and had demonstrated sustained performance under the modified terms for six months were returned to accrual status. The sustained performance considered by management pursuant to its policy included the periods prior to the modification if the prior performance met or exceeded the modified terms. This would include cash paid by the borrower prior to the restructuring to set up interest reserves. Loans classified as TDRs were reported as individually evaluated loans.

The allowance for credit loss on a TDR was measured using the same method as all other loans held for investment, except when the value of a concession could not be measured using a method other than the discounted cash flow method. Under the prior guidance when the value of a concession was measured using the discounted cash flow method, the allowance for credit loss was determined by discounting the expected future cash flows at the original interest rate of the loan.

The Company establishes a specific reserve for individually evaluated loans that do not share similar risk characteristics with the loans included in the collective reserve. These individually evaluated loans are removed from the pooling approach for the quantitative baseline, and include non-accrual loans, loan modifications made to borrowers experiencing financial difficulty, and other loans as deemed appropriate by management. The Company applies the loan refinancing and restructuring guidance provided in ASU 2022-02 to determine whether a modification made to a borrower results in a new loan or a continuation of an existing loan.

If economic conditions or other factors worsen relative to the assumptions the Company utilized, the expected loan losses will increase accordingly in future periods.

As of December 31, 2022, under the prior TDR guidance, there was accruing TDRs of $15.1 million and non-accrual TDRs of $6.3 million. As of December 31, 2022, the Company allocated zero in reserves to accruing TDRs and $427 thousand to non-accrual TDRs.

The following table presents TDRs that were modified during 2022, their specific reserve as of December 31, 2022, and charge-offs during 2022:

	*Loans Modified as TDRs During the Year Ended December 31, 2022*
	*No. of Contracts*		*Pre-Modification Outstanding Recorded Investment*		*Post-Modification Outstanding Recorded Investment*		*Specific Reserve*		*Charge-offs*
	(In thousands)

Commercial loans		4	$	6,115	$	6,115	$	427	$	—
Commercial real estate loans		3		3,676		3,669		—		—
Residential mortgage and equity lines		8		2,189		2,162		—		—
Total		15	$	11,980	$	11,946	$	427	$	—

Modifications of the loan terms in the twelve months ended December 31, 2024, and December 31, 2023, were in the form of payment deferrals, term extensions, and interest rate reductions, or a combination thereof.

The following table presents the amortized cost of loans modified to borrowers experiencing financial difficulty disaggregated by class of financing receivable and type of concession granted and the financial effects of the modifications for the twelve months ended December 31, 2024, and 2023, by loan class and modification type:

	*Twelve Months Ended December 31, 2024*													*Financial Effects of Loan Modifications*
	*Term Extension*		*Rate Reduction*		*Payment Delay*		*Combo-Rate Reduction/Term Extension/Payment Delay*		*Total*		*Modification as a % of Loan Class*			*Weighted-Average Change in Rate*		*Weighted-Average Term Extension (in Years)*		*Weighted-Average Payment Deferral (in Years)*
	(In thousands)
Loan Type
Commercial loans	$	4,720	$	—	$	130	$	4,092	$	8,942		0.29	%		0.20		2.3		0.1
Residential mortgage loans		—		—		221		—		221		0.00	%		0.00		0.0		2.0
Total	$	4,720	$	—	$	351	$	4,092	$	9,163

	*Twelve Months Ended December 31, 2023*													*Financial Effects of Loan Modifications*
	*Term Extension*		*Rate Reduction*		*Payment Delay*		*Combo-Rate Reduction/Term Extension/Payment Delay*		*Total*		*Modification as a % of Loan Class*			*Weighted-Average Change in Rate*			*Weighted-Average Term Extension (in Years)*		*Weighted-Average Payment Deferral (in Years)*
	(In thousands)
Loan Type
Commercial loans	$	—	$	—	$	—	$	2,650	$	2,650		0.08	%		(1.10	)		2.2		0.9
Residential mortgage loans		—		—		222		—		222		0.00	%		(0.10	)		0.0		2.0
Total	$	—	$	—	$	222	$	2,650	$	2,872

The Company considers a loan to be in payment default once it is 60 to 90 days contractually past due under the modified terms. The Company tracks the performance of modified loans. There were no loans that received a modification for the twelve months ended December 31, 2024, and 2023, that subsequently defaulted.

A modified loan may become delinquent and may result in a payment default (generally 90 days past due) subsequent to modification. There were no loans that received modifications which subsequently defaulted for the twelve months ended December 31, 2024, and 2023.

The Company closely monitors the performance of modified loans to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts.

The following table presents the performance of loans that were modified during the twelve months ended December 31, 2024, and 2023.

	*Twelve Months Ended December 31, 2024*
	*Current*		*30–89 Days Past Due*		*90+ Days Past Due*		*Total*
	(In thousands)
Loan Type
Commercial loans	$	8,942	$	—	$	—	$	8,942
Residential mortgage loans		221		—		—		221
Total	$	9,163	$	—	$	—	$	9,163

	*Twelve Months Ended December 31, 2023*
	*Current*		*30–89 Days Past Due*		*90+ Days Past Due*		*Total*
	(In thousands)
Loan Type
Commercial loans	$	2,650	$	—	$	—	$	2,650
Residential mortgage loans		222		—		—		222
Total	$	2,872	$	—	$	—	$	2,872

Under the Company’s internal underwriting policy, 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 in order to determine whether a borrower is experiencing financial difficulty.

As of December 31, 2024, there were no commitments to lend additional funds to borrowers experiencing financial difficulty and whose loans were modified.

As part of the on-going monitoring of the credit quality of our loan portfolio, the Company utilizes a risk grading matrix to assign a risk rating to each loan. Loans are risk rated based on analysis of the current state of the borrower’s credit quality. The analysis of credit quality includes a review of sources of repayment, the borrower’s current financial and liquidity status and other relevant information. The risk rating categories can be generally described by the following grouping for non-homogeneous loans:

	●	Pass/Watch – These loans range from minimal credit risk to higher than average, but still acceptable, credit risk. The loans have sufficient sources of repayment to repay the loans in full, in accordance with all the terms and conditions and remains currently well protected by collateral values.

	●	Special Mention – Borrower is fundamentally sound, and the loan is currently protected but adverse trends are apparent that, if not corrected, may affect ability to repay. Primary source of loan repayment remains viable but there is increasing reliance on collateral or guarantor support.

●

Substandard – These loans are inadequately protected by current sound worth, paying capacity or collateral. Well-defined weaknesses exist that could jeopardize repayment of debt. Loss may not be imminent, but if weaknesses are not corrected, there is a good possibility of some loss.

●

Doubtful – The possibility of loss is extremely high, but due to identifiable and important pending events (which may strengthen the loan), a loss classification is deferred until the situation is better defined.

●

Loss – These loans are considered uncollectible and of such little value that to continue to carry the loans as an active asset is no longer warranted.

The following table summarizes the Company’s loan held for investment as of December 31, 2024, and 2023, presented by loan portfolio segments, internal risk ratings and vintage year. The vintage year is the year of origination, renewal or major modification. Revolving loans that are converted to term loans presented in the table below are excluded from the term loans by vintage year column.

	*Loans Amortized Cost Basis by Origination Year*
December 31, 2024	*2024*		*2023*		*2022*		*2021*		*2020*		*Prior*		*Revolving Loans*		*Revolving Converted to Term Loans*		*Total*
	(In thousands)
Commercial loans
Pass/Watch	$	400,836	$	237,303	$	203,190	$	201,837	$	27,359	$	90,724	$	1,675,260	$	7,804	$	2,844,313
Special Mention		—		17,424		740		—		9,117		5,139		92,632		—		125,052
Substandard		50		5,070		12,104		6,773		22,357		6,256		67,553		222		120,385
Doubtful		1,857		—		—		3,118		—		—		—		—		4,975
Total	$	402,743	$	259,797	$	216,034	$	211,728	$	58,833	$	102,119	$	1,835,445	$	8,026	$	3,094,725

YTD gross write-offs	$	188	$	1,586	$	3,151	$	8,950	$	257	$	64	$	12,730	$	—	$	26,926

Construction loans
Pass/Watch	$	22,562	$	55,835	$	126,200	$	57,546	$	3,021	$	—	$	—	$	—	$	265,164
Special Mention		—		—		—		35,569		13,837		—		—		—		49,406
Substandard		—		4,230		—		—		—		—		—		—		4,230
Total	$	22,562	$	60,065	$	126,200	$	93,115	$	16,858	$	—	$	—	$	—	$	318,800

YTD gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial real estate loans
Pass/Watch	$	1,463,225	$	1,987,280	$	1,724,563	$	1,428,124	$	800,645	$	2,108,143	$	180,394	$	—	$	9,692,374
Special Mention		8,805		8,292		28,465		16,462		24,844		19,888		9,939		—		116,695
Substandard		—		11,364		54,269		57,929		6,946		78,737		8,152		—		217,397
Total	$	1,472,030	$	2,006,936	$	1,807,297	$	1,502,515	$	832,435	$	2,206,768	$	198,485	$	—	$	10,026,466

YTD gross write-offs	$	—	$	—	$	—	$	—	$	296	$	4,173	$	—	$	—	$	4,469

Residential mortgage loans
Pass/Watch	$	642,568	$	1,020,419	$	1,014,842	$	781,218	$	452,623	$	1,745,923	$	—	$	—	$	5,657,593
Special Mention		—		—		—		—		33		1,585		—		—		1,618
Substandard		397		2,513		4,362		5,183		4,191		13,436		—		—		30,082
Total	$	642,965	$	1,022,932	$	1,019,204	$	786,401	$	456,847	$	1,760,944	$	—	$	—	$	5,689,293

YTD gross write-offs	$	—	$	—	$	—	$	59	$	—	$	—	$	—	$	—	$	59

Equity lines
Pass/Watch	$	—	$	—	$	72	$	—	$	—	$	—	$	211,374	$	16,277	$	227,723
Special Mention		—		—		—		—		—		—		—		11		11
Substandard		—		—		—		—		—		—		2,927		161		3,088
Total	$	—	$	—	$	72	$	—	$	—	$	—	$	214,301	$	16,449	$	230,822

YTD gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	3	$	—	$	3

Installment and other loans
Pass/Watch	$	5,264	$	—	$	44	$	—	$	—	$	—	$	—	$	—	$	5,308
Total	$	5,264	$	—	$	44	$	—	$	—	$	—	$	—	$	—	$	5,308

YTD gross write-offs	$	—	$	—	$	15	$	—	$	—	$	—	$	—	$	—	$	15
Total loans	$	2,545,564	$	3,349,730	$	3,168,851	$	2,593,759	$	1,364,973	$	4,069,831	$	2,248,231	$	24,475	$	19,365,414
Total YTD gross write-offs	$	188	$	1,586	$	3,166	$	9,009	$	553	$	4,237	$	12,733	$	—	$	31,472

	*Loans Amortized Cost Basis by Origination Year*
December 31, 2023	*2023*		*2022*		*2021*		*2020*		*2019*		*Prior*		*Revolving Loans*		*Revolving Converted to Term Loans*		*Total*
	(In thousands)
Commercial loans
Pass/Watch	$	381,705	$	323,939	$	326,650	$	96,725	$	75,281	$	136,162	$	1,775,162	$	8,308	$	3,123,932
Special Mention		4,488		4,875		8,559		23,380		—		—		75,419		—		116,721
Substandard		1,752		653		9,895		2,462		763		5,775		40,131		116		61,547
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	387,945	$	329,467	$	345,104	$	122,567	$	76,044	$	141,937	$	1,890,712	$	8,424	$	3,302,200

YTD gross write-offs	$	—	$	977	$	1,312	$	384	$	3,672	$	6,044	$	1,520	$	—	$	13,909

Construction loans
Pass/Watch	$	29,550	$	131,984	$	153,977	$	19,461	$	13,298	$	3,131	$	—	$	—	$	351,401
Special Mention		1,911		—		11,707		25,389		—		22,998		—		—		62,005
Substandard		—		—		—		—		7,736		—		—		—		7,736
Total	$	31,461	$	131,984	$	165,684	$	44,850	$	21,034	$	26,129	$	—	$	—	$	421,142

YTD gross write-offs	$	—	$	—	$	—	$	—	$	—	$	4,221	$	—	$	—	$	4,221

Commercial real estate loans
Pass/Watch	$	2,121,489	$	1,959,239	$	1,585,010	$	887,508	$	1,019,952	$	1,726,015	$	184,601	$	—	$	9,483,814
Special Mention		37,604		18,910		38,405		3,499		10,303		17,210		1,384		—		127,315
Substandard		—		11,870		12,170		2,965		17,293		66,205		—		—		110,503
Total	$	2,159,093	$	1,990,019	$	1,635,585	$	893,972	$	1,047,548	$	1,809,430	$	185,985	$	—	$	9,721,632

YTD gross write-offs	$	—	$	—	$	208	$	—	$	969	$	4,164	$	—	$	—	$	5,341

Residential mortgage loans
Pass/Watch	$	1,140,998	$	1,128,526	$	902,613	$	524,315	$	541,005	$	1,583,118	$	—	$	—	$	5,820,575
Special Mention		—		—		—		33		—		1,619		—		—		1,652
Substandard		7		652		3,325		2,577		1,334		9,311		—		—		17,206
Total	$	1,141,005	$	1,129,178	$	905,938	$	526,925	$	542,339	$	1,594,048	$	—	$	—	$	5,839,433

YTD gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Equity lines
Pass/Watch	$	—	$	98	$	—	$	—	$	—	$	—	$	227,502	$	16,628	$	244,228
Special Mention		—		3		—		—		—		—		—		—		3
Substandard		—		—		—		—		—		—		2,511		173		2,684
Total	$	—	$	101	$	—	$	—	$	—	$	—	$	230,013	$	16,801	$	246,915

YTD gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Installment and other loans
Pass/Watch	$	5,114	$	981	$	3	$	—	$	—	$	—	$	—	$	—	$	6,098
Total	$	5,114	$	981	$	3	$	—	$	—	$	—	$	—	$	—	$	6,098

YTD gross write-offs	$	—	$	15	$	—	$	—	$	—	$	—	$	—	$	—	$	15
Total loans	$	3,724,618	$	3,581,730	$	3,052,314	$	1,588,314	$	1,686,965	$	3,571,544	$	2,306,710	$	25,225	$	19,537,420
Total YTD gross write-offs	$	—	$	992	$	1,520	$	384	$	4,641	$	14,429	$	1,520	$	—	$	23,486

Revolving loans that are converted to term loans presented in the table above are excluded from the term loans by vintage year columns.

The following table details activity in the allowance for loan losses by portfolio segment for the years ended December 31, 2024, and 2023. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.

							*Commercial*			*Residential*			*Installment*
	*Commercial*			*Construction*			*Real Estate*			*Mortgage*			*and Other*
	*Loans*			*Loans*			*Loans*			*and Equity Lines*			*Loans*			*Total*
	(In thousands)
Allowance for loan losses
2022 Ending Balance	$	49,435		$	10,417		$	68,366		$	18,232		$	35		$	146,485
Provision/(reversal) for expected credit losses		15,275			1,984			8,570			(177	)		3			25,655
Charge-offs		(13,909	)		(4,221	)		(5,341	)		—			(15	)		(23,486	)
Recoveries		2,990			—			2,833			85			—			5,908
Net (Charge-offs)/Recoveries	$	(10,919	)	$	(4,221	)	$	(2,508	)	$	85		$	(15	)	$	(17,578	)

2023 Ending Balance	$	53,791		$	8,180		$	74,428		$	18,140		$	23		$	154,562
Provision/(reversal) for expected credit losses		29,829			5			9,330			(2,283	)		(4	)		36,877
Charge-offs		(26,926	)		—			(4,469	)		(62	)		(15	)		(31,472	)
Recoveries		1,102			—			308			386			2			1,798
Net (Charge-offs)/Recoveries	$	(25,824	)	$	—		$	(4,161	)	$	324		$	(13	)	$	(29,674	)

2024 Ending Balance	$	57,796		$	8,185		$	79,597		$	16,181		$	6		$	161,765

Allowance for unfunded credit commitments, 2022 Ending Balance	$	4,840		$	3,890		$	—		$	—		$	—		$	8,730
Provision/(reversal) for expected credit losses		2,048			(1,725	)		—			—			—			323
Allowance for unfunded credit commitments 2023 Ending Balance	$	6,888		$	2,165		$	—		$	—		$	—		$	9,053
Provision/(reversal) for expected credit losses		892			(269	)		—			—			—			623
Allowance for unfunded credit commitments 2024 Ending Balance	$	7,780		$	1,896		$	—		$	—		$	—		$	9,676

Residential mortgage loans in process of formal foreclosure proceedings were $6.7 million as of December 31, 2024, and $242 thousand as of December 31, 2023.