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Note 5 - Loans and the Allowance for Credit Losses | 12 Months Ended
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Dec. 31, 2024
Notes to Financial Statements |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 5– Loans and the Allowance for Credit Losses Loans Receivable: The following table sets forth the composition of the Company’s loan portfolio segments, net of deferred fees, as of December 31, 2024 and December 31, 2023:
|  | 2024 |  |  | 2023 |
|  | (dollars in thousands) |
Commercial |  | $ | 1,532,730 |  |  | $ | 1,578,730 |
Commercial real estate |  |  | 5,880,679 |  |  |  | 5,895,545 |
Commercial construction |  |  | 616,246 |  |  |  | 620,496 |
Residential real estate |  |  | 249,691 |  |  |  | 256,041 |
Consumer |  |  | 1,136 |  |  |  | 1,029 |
Gross loans |  |  | 8,280,482 |  |  |  | 8,351,841 |
Net deferred fees |  |  | (5,672 | ) |  |  | (6,696 | )
Loans receivable |  | $ | 8,274,810 |  |  | $ | 8,345,145 |
At both December 31, 2024 and December 31, 2023, loan balances of approximately $5.8 billion, were pledged to secure borrowings from the FHLB of New York and the Federal Reserve Bank of New York. During 2023, the Company took actions to increase its secured borrowing access and increase levels of off-balance sheet liquidity and as such increased the amount of loans pledged to each of these borrowing facilities.
| • | The repayment of commercial loans is generally dependent on the creditworthiness and cash flow of borrowers, and if applicable, guarantors, which may be negatively impacted by adverse economic conditions. While the majority of these loans are secured, collateral type, marketing, coverage, valuation and monitoring is not as uniform as in other portfolio classes and recovery from liquidation of such collateral may be subject to greater variability.
| • | Payment on commercial real estate is driven principally by operating results of the managed properties or underlying business and secondarily by the sale or refinance of such properties. Both primary and secondary sources of repayment, and value of the properties in liquidation, may be affected to a greater extent by adverse conditions in the real estate market or the economy in general.
| • | Properties underlying construction, land and land development loans often do not generate sufficient cash flows to service debt and thus repayment is subject to the ability of the borrower and, if applicable, guarantors, to complete development or construction of the property and carry the project, often for extended periods of time. As a result, the performance of these loans is contingent upon future events whose probability at the time of origination is uncertain.
| • | The ability of borrowers to service debt in the residential and consumer loan portfolios is generally subject to personal income which may be impacted by general economic conditions, such as increased unemployment levels. These loans are predominately collateralized by first and/or second liens on single family properties. If a borrower cannot maintain the loan, the Company’s ability to recover against the collateral in sufficient amount and in a timely manner may be significantly influenced by market, legal and regulatory conditions.
| • | The Company considers loan classes and loan segments to be one and the same.
Loans Held-For-Sale: The following table presents loans held-for-sale by loan segment as of December 31, 2024 and December 31, 2023:
|  | 2024 |  |  | 2023 |
|  | (dollars in thousands) |
Residential real estate |  | $ | 743 |  |  | $ | - |
Loans Receivable on Nonaccrual Status - The following tables present the amortized cost basis of loans on nonaccrual status by loan segment as of December 31, 2024 and 2023:
|  | December 31, 2024 |
|  | Nonaccrual loans with ACL |  |  | Nonaccrual loans without ACL |  |  | Total Nonaccrual loans |
|  | (dollars in thousands) |
Commercial |  | $ | 1,744 |  |  | $ | 14,487 |  |  | $ | 16,231 |
Commercial real estate |  |  | 3,822 |  |  |  | 32,664 |  |  |  | 36,486 |
Commercial construction |  |  | - |  |  |  | 2,204 |  |  |  | 2,204 |
Residential real estate |  |  | 333 |  |  |  | 2,056 |  |  |  | 2,389 |
Total |  | $ | 5,899 |  |  | $ | 51,411 |  |  | $ | 57,310 |
|  | December 31, 2023 |
|  | Nonaccrual loans with ACL |  |  | Nonaccrual loans without ACL |  |  | Total Nonaccrual loans |
|  | (dollars in thousands) |
Commercial |  | $ | 1,763 |  |  | $ | 11,064 |  |  | $ | 12,827 |
Commercial real estate |  |  | 8,013 |  |  |  | 28,179 |  |  |  | 36,192 |
Residential real estate |  |  | 1,033 |  |  |  | 2,472 |  |  |  | 3,505 |
Total |  | $ | 10,809 |  |  | $ | 41,715 |  |  | $ | 52,524 |
Nonaccrual loans include loans that are collectively evaluated and individually analyzed. Credit Quality Indicators – The Company continuously monitors the credit quality of its loans receivable. In addition to its internal monitoring, the Company utilizes the services of a third-party loan review firm to periodically validate the credit quality of its loans receivable on a sample basis. Credit quality is monitored by reviewing certain credit quality indicators. Assets classified as “Pass” are deemed to possess average to superior credit quality, requiring no more than normal attention. Assets classified as “Special Mention” have generally acceptable credit quality yet possess higher risk characteristics/circumstances than satisfactory assets. Such conditions include strained liquidity, slow pay, stale financial statements, or other conditions that require more stringent attention from the lending staff. These conditions, if not corrected, may weaken the loan quality or inadequately protect the Company’s credit position at some future date. Assets are classified as “Substandard” if the asset has a well-defined weakness that requires management’s attention to a greater degree than for loans classified as special mention. Such weakness, if left uncorrected, could possibly result in the compromised ability of the loan to perform to contractual requirements. An asset is classified as “Doubtful” if it is inadequately protected by the net worth and/or paying capacity of the obligor or of the collateral, if any, that secures the obligation. Assets classified as doubtful include assets for which there is a “distinct possibility” that a degree of loss will occur if the inadequacies are not corrected. We evaluate whether a modification, extension or renewal of a loan is a current period origination in accordance with GAAP. Generally, loans up for renewal are subject to a full credit evaluation before the renewal is granted and such loans are considered current period originations for purpose of the table below. As of December 31, 2024, our loans based on year of origination and risk designation and gross charge-offs are as follows (dollars in thousands):
|  | Term loans amortized cost basis by origination year |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Revolving |  |  | Total |
|  | 2024 |  |  | 2023 |  |  | 2022 |  |  | 2021 |  |  | 2020 |  |  | Prior |  |  | Loans |  |  | Gross Loans |
Commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 67,298 |  |  | $ | 157,067 |  |  | $ | 194,602 |  |  | $ | 237,065 |  |  | $ | 29,717 |  |  | $ | 111,841 |  |  | $ | 678,206 |  |  | $ | 1,475,796 |
Special mention |  |  | 1,908 |  |  |  | - |  |  |  | 2,817 |  |  |  | 2,538 |  |  |  | 1,643 |  |  |  | 6,209 |  |  |  | 17,491 |  |  |  | 32,606 |
Substandard |  |  | - |  |  |  | 3,019 |  |  |  | 3,705 |  |  |  | 217 |  |  |  | - |  |  |  | 15,844 |  |  |  | 1,543 |  |  |  | 24,328 |
Doubtful |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Total Commercial |  | $ | 69,206 |  |  | $ | 160,086 |  |  | $ | 201,124 |  |  | $ | 239,820 |  |  | $ | 31,360 |  |  | $ | 133,894 |  |  | $ | 697,240 |  |  | $ | 1,532,730 |
YTD gross charge-offs |  | $ | - |  |  | $ | - |  |  | $ | 1,003 |  |  | $ | 49 |  |  | $ | - |  |  | $ | 316 |  |  | $ | 1,918 |  |  | $ | 3,286 |
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 408,314 |  |  | $ | 268,533 |  |  | $ | 1,424,209 |  |  | $ | 1,510,087 |  |  | $ | 339,553 |  |  | $ | 1,357,858 |  |  | $ | 415,286 |  |  | $ | 5,723,840 |
Special mention |  |  | - |  |  |  | - |  |  |  | 53,642 |  |  |  | - |  |  |  | - |  |  |  | 59,719 |  |  |  | - |  |  |  | 113,361 |
Substandard |  |  | - |  |  |  | - |  |  |  | 3,822 |  |  |  | 1,846 |  |  |  | 1,752 |  |  |  | 36,058 |  |  |  | - |  |  |  | 43,478 |
Doubtful |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Total Commercial real estate |  | $ | 408,314 |  |  | $ | 268,533 |  |  | $ | 1,481,673 |  |  | $ | 1,511,933 |  |  | $ | 341,305 |  |  | $ | 1,453,635 |  |  | $ | 415,286 |  |  | $ | 5,880,679 |
YTD gross charge-offs |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 10,416 |  |  | $ | - |  |  | $ | 10,416 |
Commercial construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 15,390 |  |  | $ | - |  |  | $ | 2,137 |  |  | $ | 8,995 |  |  | $ | 6,518 |  |  | $ | - |  |  | $ | 581,002 |  |  | $ | 614,042 |
Special mention |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Substandard |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 2,204 |  |  |  | 2,204 |
Doubtful |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Total Commercial construction |  | $ | 15,390 |  |  | $ | - |  |  | $ | 2,137 |  |  | $ | 8,995 |  |  | $ | 6,518 |  |  | $ | - |  |  | $ | 583,206 |  |  | $ | 616,246 |
YTD gross charge-offs |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |
Residential real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 17,763 |  |  | $ | 14,542 |  |  | $ | 39,197 |  |  | $ | 21,925 |  |  | $ | 17,339 |  |  | $ | 96,657 |  |  | $ | 36,471 |  |  | $ | 243,894 |
Special mention |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 635 |  |  |  | 2,773 |  |  |  | 3,408 |
Substandard |  |  | - |  |  |  | - |  |  |  | 633 |  |  |  | - |  |  |  | 1,157 |  |  |  | 364 |  |  |  | 235 |  |  |  | 2,389 |
Doubtful |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Total Residential real estate |  | $ | 17,763 |  |  | $ | 14,542 |  |  | $ | 39,830 |  |  | $ | 21,925 |  |  | $ | 18,496 |  |  | $ | 97,656 |  |  | $ | 39,479 |  |  | $ | 249,691 |
YTD gross charge-offs |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 1,015 |  |  | $ | 24 |  |  | $ | 1 |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 96 |  |  | $ | 1,136 |
Special mention |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Substandard |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Doubtful |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Total Consumer |  | $ | 1,015 |  |  | $ | 24 |  |  | $ | 1 |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 96 |  |  | $ | 1,136 |
YTD gross charge-offs |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |
Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 509,780 |  |  | $ | 440,166 |  |  | $ | 1,660,146 |  |  | $ | 1,778,072 |  |  | $ | 393,127 |  |  | $ | 1,566,356 |  |  | $ | 1,711,061 |  |  | $ | 8,058,708 |
Special mention |  |  | 1,908 |  |  |  | - |  |  |  | 56,459 |  |  |  | 2,538 |  |  |  | 1,643 |  |  |  | 66,563 |  |  |  | 20,264 |  |  |  | 149,375 |
Substandard |  |  | - |  |  |  | 3,019 |  |  |  | 8,160 |  |  |  | 2,063 |  |  |  | 2,909 |  |  |  | 52,266 |  |  |  | 3,982 |  |  |  | 72,399 |
Doubtful |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Grand Total |  | $ | 511,688 |  |  | $ | 443,185 |  |  | $ | 1,724,765 |  |  | $ | 1,782,673 |  |  | $ | 397,679 |  |  | $ | 1,685,185 |  |  | $ | 1,735,307 |  |  | $ | 8,280,482 |
YTD gross charge-offs |  | $ | - |  |  | $ | - |  |  | $ | 1,003 |  |  | $ | 49 |  |  | $ | - |  |  | $ | 10,732 |  |  | $ | 1,918 |  |  | $ | 13,702 |
As of December 31, 2023, our loans based on year of origination and risk designation and gross charge-offs are as follows (dollars in thousands):
|  | Term loans amortized cost basis by origination year |  |  | Revolving |  |  | Total |
|  | 2023 |  |  | 2022 |  |  | 2021 |  |  | 2020 |  |  | 2019 |  |  | Prior |  |  | Loans |  |  | Gross Loans |
Commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 178,582 |  |  | $ | 252,151 |  |  | $ | 265,705 |  |  | $ | 38,909 |  |  | $ | 13,726 |  |  | $ | 112,145 |  |  | $ | 684,779 |  |  | $ | 1,545,997 |
Special mention |  |  | - |  |  |  | 10,620 |  |  |  | - |  |  |  | - |  |  |  | 562 |  |  |  | 3,417 |  |  |  | 3,199 |  |  |  | 17,798 |
Substandard |  |  | 250 |  |  |  | 439 |  |  |  | 241 |  |  |  | 1 |  |  |  | 612 |  |  |  | 11,695 |  |  |  | 1,697 |  |  |  | 14,935 |
Doubtful |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Total Commercial |  | $ | 178,832 |  |  | $ | 263,210 |  |  | $ | 265,946 |  |  | $ | 38,910 |  |  | $ | 14,900 |  |  | $ | 127,257 |  |  | $ | 689,675 |  |  | $ | 1,578,730 |
YTD gross charge-offs |  | $ | 54 |  |  | $ | 3,397 |  |  | $ | - |  |  | $ | - |  |  | $ | 280 |  |  | $ | 11,094 |  |  | $ | 63 |  |  | $ | 14,888 |
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 248,660 |  |  | $ | 1,561,841 |  |  | $ | 1,585,109 |  |  | $ | 352,445 |  |  | $ | 353,391 |  |  | $ | 1,232,240 |  |  | $ | 497,588 |  |  | $ | 5,831,274 |
Special mention |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 24,202 |  |  |  | - |  |  |  | 24,202 |
Substandard |  |  | - |  |  |  | - |  |  |  | 1,888 |  |  |  | - |  |  |  | 1,255 |  |  |  | 20,141 |  |  |  | 16,785 |  |  |  | 40,069 |
Doubtful |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Total Commercial real estate |  | $ | 248,660 |  |  | $ | 1,561,841 |  |  | $ | 1,586,997 |  |  | $ | 352,445 |  |  | $ | 354,646 |  |  | $ | 1,276,583 |  |  | $ | 514,373 |  |  | $ | 5,895,545 |
YTD gross charge-offs |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 2,142 |  |  | $ | - |  |  | $ | 2,142 |
Commercial construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 582 |  |  | $ | 5,463 |  |  | $ | 15,645 |  |  | $ | 6,236 |  |  | $ | - |  |  | $ | - |  |  | $ | 583,870 |  |  | $ | 611,796 |
Special mention |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 8,700 |  |  |  | 8,700 |
Substandard |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Doubtful |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Total Commercial construction |  | $ | 582 |  |  | $ | 5,463 |  |  | $ | 15,645 |  |  | $ | 6,236 |  |  | $ | - |  |  | $ | - |  |  | $ | 592,570 |  |  | $ | 620,496 |
YTD gross charge-offs |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |
Residential real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 15,455 |  |  | $ | 42,830 |  |  | $ | 21,987 |  |  | $ | 21,704 |  |  | $ | 19,896 |  |  | $ | 91,114 |  |  | $ | 36,082 |  |  | $ | 249,068 |
Special mention |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 651 |  |  |  | 2,817 |  |  |  | 3,468 |
Substandard |  |  | - |  |  |  | - |  |  |  | 555 |  |  |  | - |  |  |  | - |  |  |  | 2,144 |  |  |  | 806 |  |  |  | 3,505 |
Doubtful |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Total Residential real estate |  | $ | 15,455 |  |  | $ | 42,830 |  |  | $ | 22,542 |  |  | $ | 21,704 |  |  | $ | 19,896 |  |  | $ | 93,909 |  |  | $ | 39,705 |  |  | $ | 256,041 |
YTD gross charge-offs |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 18 |  |  | $ | 18 |
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 849 |  |  | $ | 83 |  |  | $ | - |  |  | $ | 5 |  |  | $ | - |  |  | $ | - |  |  | $ | 92 |  |  | $ | 1,029 |
Special mention |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Substandard |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Doubtful |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Total Consumer |  | $ | 849 |  |  | $ | 83 |  |  | $ | - |  |  | $ | 5 |  |  | $ | - |  |  | $ | - |  |  | $ | 92 |  |  | $ | 1,029 |
YTD gross charge-offs |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 1 |  |  | $ | 1 |
Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 444,128 |  |  | $ | 1,862,368 |  |  | $ | 1,888,446 |  |  | $ | 419,299 |  |  | $ | 387,013 |  |  | $ | 1,435,499 |  |  | $ | 1,802,411 |  |  | $ | 8,239,164 |
Special mention |  |  | - |  |  |  | 10,620 |  |  |  | - |  |  |  | - |  |  |  | 562 |  |  |  | 28,270 |  |  |  | 14,716 |  |  |  | 54,168 |
Substandard |  |  | 250 |  |  |  | 439 |  |  |  | 2,684 |  |  |  | 1 |  |  |  | 1,867 |  |  |  | 33,980 |  |  |  | 19,288 |  |  |  | 58,509 |
Doubtful |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Grand Total |  | $ | 444,378 |  |  | $ | 1,873,427 |  |  | $ | 1,891,130 |  |  | $ | 419,300 |  |  | $ | 389,442 |  |  | $ | 1,497,749 |  |  | $ | 1,836,415 |  |  | $ | 8,351,841 |
YTD gross charge-offs |  | $ | 54 |  |  | $ | 3,397 |  |  | $ | - |  |  | $ | - |  |  | $ | 280 |  |  | $ | 13,236 |  |  | $ | 82 |  |  | $ | 17,049 |
Collateral-dependent Loans - The following tables present the amortized cost basis of collateral-dependent loans by loan segment as of December 31, 2024 and 2023:
|  | December 31, 2024 |
|  | Real Estate |  |  | Other |  |  | Total |
|  | (dollars in thousands) |
Commercial |  | $ | 2,308 |  |  | $ | 9,222 |  |  | $ | 11,530 |
Commercial real estate |  |  | 36,486 |  |  |  | - |  |  |  | 36,486 |
Commercial construction |  |  | 2,204 |  |  |  | - |  |  |  | 2,204 |
Residential real estate |  |  | 2,056 |  |  |  | - |  |  |  | 2,056 |
Total |  | $ | 43,054 |  |  | $ | 9,222 |  |  | $ | 52,276 |
|  | December 31, 2023 |
|  | Real Estate |  |  | Other |  |  | Total |
|  | (dollars in thousands) |
Commercial |  | $ | 4,949 |  |  | $ | 10,387 |  |  | $ | 15,336 |
Commercial real estate |  |  | 39,986 |  |  |  | - |  |  |  | 39,986 |
Commercial construction |  |  | 8,700 |  |  |  | - |  |  |  | 8,700 |
Residential real estate |  |  | 5,941 |  |  |  | - |  |  |  | 5,941 |
Total |  | $ | 59,576 |  |  | $ | 10,387 |  |  | $ | 69,963 |
Aging Analysis – The following tables present the aging of the amortized cost in past-due loans by loan segment as of December 31, 2024 and December 31, 2023 (dollars in thousands):
|  | December 31, 2024 |
|  | 30-59 Days Past Due |  |  | 60-89 Days Past Due |  |  | 90 Days or Greater Past Due and Still Accruing |  |  | Nonaccrual |  |  | Total Past Due and Nonaccrual |  |  | Current |  |  | Gross Loans |
Commercial |  | $ | 1,340 |  |  | $ | - |  |  | $ | - |  |  | $ | 16,231 |  |  | $ | 17,571 |  |  | $ | 1,515,159 |  |  | $ | 1,532,730 |
Commercial real estate |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 36,486 |  |  |  | 36,486 |  |  |  | 5,844,193 |  |  |  | 5,880,679 |
Commercial construction |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 2,204 |  |  |  | 2,204 |  |  |  | 614,042 |  |  |  | 616,246 |
Residential real estate |  |  | 1,991 |  |  |  | - |  |  |  | - |  |  |  | 2,389 |  |  |  | 4,380 |  |  |  | 245,311 |  |  |  | 249,691 |
Consumer |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 1,136 |  |  |  | 1,136 |
Total |  | $ | 3,331 |  |  | $ | - |  |  | $ | - |  |  | $ | 57,310 |  |  | $ | 60,641 |  |  | $ | 8,219,841 |  |  | $ | 8,280,482 |
|  | December 31, 2023 |
|  | 30-59 Days Past Due |  |  | 60-89 Days Past Due |  |  | 90 Days or Greater Past Due and Still Accruing |  |  | Nonaccrual |  |  | Total Past Due and Nonaccrual |  |  | Current |  |  | Gross Loans |
Commercial |  | $ | 555 |  |  | $ | - |  |  | $ | - |  |  | $ | 12,827 |  |  | $ | 13,382 |  |  | $ | 1,565,348 |  |  | $ | 1,578,730 |
Commercial real estate |  |  | 527 |  |  |  | - |  |  |  | - |  |  |  | 36,192 |  |  |  | 36,719 |  |  |  | 5,858,826 |  |  |  | 5,895,545 |
Commercial construction |  |  | - |  |  |  | 23,600 |  |  |  | - |  |  |  | - |  |  |  | 23,600 |  |  |  | 596,896 |  |  |  | 620,496 |
Residential real estate |  |  | 275 |  |  |  | 226 |  |  |  | - |  |  |  | 3,505 |  |  |  | 4,006 |  |  |  | 252,035 |  |  |  | 256,041 |
Consumer |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 1,029 |  |  |  | 1,029 |
Total |  | $ | 1,357 |  |  | $ | 23,826 |  |  | $ | - |  |  | $ | 52,524 |  |  | $ | 77,707 |  |  | $ | 8,274,134 |  |  | $ | 8,351,841 |
The following tables detail the amount of gross loans that are individually analyzed, collectively evaluated, and loans acquired with deteriorated quality, and the related portion of the allowance for credit losses for loans that are allocated to each loan portfolio segment.
|  | December 31, 2024 |
|  | Commercial |  |  | Commercial real estate |  |  | Commercial construction |  |  | Residential real estate |  |  | Consumer |  |  | Total |
|  | (dollars in thousands) |
Allowance for credit losses - loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually analyzed |  | $ | 326 |  |  | $ | 909 |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 1,235 |
Collectively evaluated |  |  | 17,740 |  |  |  | 53,868 |  |  |  | 5,064 |  |  |  | 4,561 |  |  |  | 5 |  |  |  | 81,238 |
Acquired with deteriorated credit quality |  |  | 212 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 212 |
Total |  | $ | 18,278 |  |  | $ | 54,777 |  |  | $ | 5,064 |  |  | $ | 4,561 |  |  | $ | 5 |  |  | $ | 82,685 |
Gross loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually analyzed |  | $ | 15,751 |  |  | $ | 36,486 |  |  | $ | 2,204 |  |  | $ | 2,056 |  |  | $ | - |  |  | $ | 56,497 |
Collectively evaluated |  |  | 1,516,557 |  |  |  | 5,844,193 |  |  |  | 614,042 |  |  |  | 247,635 |  |  |  | 1,136 |  |  |  | 8,223,563 |
Acquired with deteriorated credit quality |  |  | 422 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 422 |
Total |  | $ | 1,532,730 |  |  | $ | 5,880,679 |  |  | $ | 616,246 |  |  | $ | 249,691 |  |  | $ | 1,136 |  |  | $ | 8,280,482 |
|  | December 31, 2023 |
|  | Commercial |  |  | Commercial real estate |  |  | Commercial construction |  |  | Residential real estate |  |  | Consumer |  |  | Total |
|  | (dollars in thousands) |
Allowance for credit losses - loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually analyzed |  | $ | - |  |  | $ | 941 |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 941 |
Collectively evaluated |  |  | 20,215 |  |  |  | 51,337 |  |  |  | 4,739 |  |  |  | 4,320 |  |  |  | 5 |  |  |  | 80,616 |
Acquired with deteriorated credit quality |  |  | 417 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 417 |
Total |  | $ | 20,632 |  |  | $ | 52,278 |  |  | $ | 4,739 |  |  | $ | 4,320 |  |  | $ | 5 |  |  | $ | 81,974 |
Gross loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually analyzed |  | $ | 15,336 |  |  | $ | 39,986 |  |  | $ | 8,700 |  |  | $ | 5,941 |  |  | $ | - |  |  | $ | 69,963 |
Collectively evaluated |  |  | 1,562,910 |  |  |  | 5,855,559 |  |  |  | 611,796 |  |  |  | 250,100 |  |  |  | 1,029 |  |  |  | 8,281,394 |
Acquired with deteriorated credit quality |  |  | 484 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 484 |
Total |  | $ | 1,578,730 |  |  | $ | 5,895,545 |  |  | $ | 620,496 |  |  | $ | 256,041 |  |  | $ | 1,029 |  |  | $ | 8,351,841 |
A summary of the activity in the allowance for credit losses for loans by loan segment is as follows:
|  | Commercial |  |  | Commercial real estate |  |  | Commercial construction |  |  | Residential real estate |  |  | Consumer |  |  | Total |
|  | (dollars in thousands) |
Balance as of January 1, 2024 |  | $ | 20,632 |  |  | $ | 52,278 |  |  | $ | 4,739 |  |  | $ | 4,320 |  |  | $ | 5 |  |  | $ | 81,974 |
Charge-offs |  |  | (3,286 | ) |  |  | (10,416 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (13,702 | )
Recoveries |  |  | 392 |  |  |  | 31 |  |  |  | - |  |  |  | 6 |  |  |  | - |  |  |  | 429 |
Provision for credit losses |  |  | 540 |  |  |  | 12,884 |  |  |  | 325 |  |  |  | 235 |  |  |  | - |  |  |  | 13,984 |
Balance as of December 31, 2024 |  | $ | 18,278 |  |  | $ | 54,777 |  |  | $ | 5,064 |  |  | $ | 4,561 |  |  | $ | 5 |  |  | $ | 82,685 |
|  | Commercial |  |  | Commercial real estate |  |  | Commercial construction |  |  | Residential real estate |  |  | Consumer |  |  | Total |
|  | (dollars in thousands) |
Balance as of January 1, 2023 |  | $ | 28,903 |  |  | $ | 53,742 |  |  | $ | 3,718 |  |  | $ | 4,143 |  |  | $ | 7 |  |  | $ | 90,513 |
Charge-offs |  |  | (14,888 | ) |  |  | (2,142 | ) |  |  | - |  |  |  | (18 | ) |  |  | (1 | ) |  |  | (17,049 | )
Recoveries |  |  | 10 |  |  |  | - |  |  |  | - |  |  |  | 68 |  |  |  | 8 |  |  |  | 86 |
Provision for (reversal) of credit losses |  |  | 6,607 |  |  |  | 678 |  |  |  | 1,021 |  |  |  | 127 |  |  |  | (9 | ) |  |  | 8,424 |
Balance as of December 31, 2023 |  | $ | 20,632 |  |  | $ | 52,278 |  |  | $ | 4,739 |  |  | $ | 4,320 |  |  | $ | 5 |  |  | $ | 81,974 |
|  | Commercial |  |  | Commercial real estate |  |  | Commercial construction |  |  | Residential real estate |  |  | Consumer |  |  | Total |
|  | (dollars in thousands) |
Balance as of January 1, 2022 |  | $ | 25,969 |  |  | $ | 45,589 |  |  | $ | 3,580 |  |  | $ | 3,628 |  |  | $ | 7 |  |  | $ | 78,773 |
Charge-offs |  |  | (2,612 | ) |  |  | (2,819 | ) |  |  | - |  |  |  | (9 | ) |  |  | (3 | ) |  |  | (5,443 | )
Recoveries |  |  | 54 |  |  |  | - |  |  |  | - |  |  |  | 63 |  |  |  | - |  |  |  | 117 |
Provision for credit losses |  |  | 5,492 |  |  |  | 10,972 |  |  |  | 138 |  |  |  | 461 |  |  |  | 3 |  |  |  | 17,066 |
Balance as of December 31, 2022 |  | $ | 28,903 |  |  | $ | 53,742 |  |  | $ | 3,718 |  |  | $ | 4,143 |  |  | $ | 7 |  |  | $ | 90,513 |
Loan Modifications to Borrowers Experiencing Financial Difficulty: The following table presents the amortized cost basis to borrowers experiencing financial difficulty that were modified during the last 12 months. The modification percentage represents the total modified loans as compared to the total gross loan balances as of December 31, 2024.
|  | Amortized Cost Basis at Time of Modification |  |  |  |  |  |  |  |  |
|  | Term Extension |  |  | Payment Deferral |  |  | Interest Rate Reduction |  |  | Payment Reduction |  |  | Total |  |  | Gross Loans at December 31, 2024 |  |  | Modification % (Modified Loans/Gross Loans) |
December 31, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  | $ | 17,641 |  |  | $ | 126 |  |  | $ | - |  |  | $ | 333 |  |  | $ | 18,100 |  |  | $ | 1,532,730 |  |  |  | 1.18 | %
Commercial real estate |  |  | - |  |  |  | - |  |  |  | 63,804 |  |  |  | - |  |  |  | 63,804 |  |  |  | 5,880,679 |  |  |  | 1.08 |
Residential real estate |  |  | 1,413 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 1,413 |  |  |  | 249,691 |  |  |  | 0.57 |
Total |  | $ | 19,054 |  |  | $ | 126 |  |  | $ | 63,804 |  |  | $ | 333 |  |  | $ | 83,317 |  |  | $ | 7,663,100 |  |  |  | 1.09 | %
The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty during the last 12 months.
|  | Weighted Average Term Extension (Months) |  |  | Weighted Average Payment Deferral (Months) |  |  | Weighted Average Interest Rate Reduction |  |  | Weighted Average Payment Reduction |
December 31, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  |  | 6 |  |  |  | 3 |  |  |  | - | % |  | $ | 6 |
Commercial real estate |  |  | - |  |  |  | - |  |  |  | 0.8 |  |  |  | - |
Residential real estate |  |  | 136 |  |  |  | - |  |  |  | - |  |  |  | - |
Total |  |  | 142 |  |  |  | 3 |  |  |  | 0.8 | % |  | $ | 6 |
The Company closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents the performance of such loans that have been modified in the last 12 months.
|  | Current |  |  | 30-89 Days Past Due |  |  | 90 Days or Greater Past Due |
December 31, 2024 |  |  |  |  |  |  |  |  |  |  |  |
(dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  | $ | 18,100 |  |  | $ | - |  |  | $ | - |
Commercial real estate |  |  | 63,804 |  |  |  | - |  |  |  | - |
Residential real estate |  |  | 1,413 |  |  |  | - |  |  |  | - |
Total |  | $ | 83,317 |  |  | $ | - |  |  | $ | - |
The following table presents the amortized cost basis to borrowers experiencing financial difficulty that were modified during the last 12 months. The modification percentage represents the total modified loans as compared to the total gross loan balances as of December 31, 2023.
|  | Amortized Cost Basis at Time of Modification |  |  |  |  |  |  |  |  |
|  | Term Extension |  |  | Payment Deferral |  |  | Interest Rate Reduction |  |  | Payment Reduction |  |  | Total |  |  | Gross Loans at December 31, 2023 |  |  | Modification % (Modified Loans/Gross Loans) |
December 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  | $ | 34 |  |  | $ | 10,283 |  |  | $ | - |  |  | $ | - |  |  | $ | 10,317 |  |  | $ | 1,578,730 |  |  |  | 0.65 | %
Commercial real estate |  |  | 209 |  |  |  | - |  |  |  | 7,272 |  |  |  | - |  |  |  | 7,481 |  |  |  | 5,895,545 |  |  |  | 0.13 |
Total |  | $ | 243 |  |  | $ | 10,283 |  |  | $ | 7,272 |  |  | $ | - |  |  | $ | 17,798 |  |  | $ | 7,474,275 |  |  |  | 0.24 | %
The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty during the last 12 months.
|  | Weighted Average Term Extension (Months) |  |  | Weighted Average Payment Deferral (Months) |  |  | Weighted Average Interest Rate Reduction |  |  | Weighted Average Payment Reduction |
December 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  |  | 36 |  |  |  | 6 |  |  |  | - | % |  | $ | - |
Commercial real estate |  |  | 180 |  |  |  | - |  |  |  | 1.9 |  |  |  | - |
Total |  |  | 216 |  |  |  | 6 |  |  |  | 1.9 | % |  | $ | - |
The Company closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents the performance of such loans that have been modified in the last 12 months.
|  | Current |  |  | 30-89 Days Past Due |  |  | 90 Days or Greater Past Due |
December 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |
(dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  | $ | 10,317 |  |  | $ | - |  |  | $ | - |
Commercial real estate |  |  | 7,481 |  |  |  | - |  |  |  | - |
Total |  | $ | 17,798 |  |  | $ | - |  |  | $ | - |
There were no loans to borrowers experiencing financial difficulty that had a payment default during the year ended December 31, 2024 and December 31, 2023 and were modified in the twelve months prior to that default. Upon the Company’s determination that a modified loan (or portion of the loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is charged-off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount. Allowance for Credit Losses for Unfunded Commitments The Company has recorded an ACL for unfunded credit commitments, which is recorded in other liabilities. The provision is recorded within the provision for credit losses on the Company’s Consolidated Statement of Income. The following table presents the allowance for credit losses for unfunded commitments for the year ended December 31, 2024 and 2023 (dollars in thousands):
|  | 2024 |  |  | 2023 |
Balance at beginning of period |  | $ | 2,811 |  |  | $ | 3,035 |
Reversal of credit losses - unfunded commitments |  |  | (184 | ) |  |  | (224 | )
Balance at end of period |  | $ | 2,627 |  |  | $ | 2,811 |
Components of (Reversal of) Provision for Credit Losses The following table summarizes the provision for (reversal of) provision for credit losses for the year ended December 31, 2024 and 2023 (dollars in thousands):
|  | 2024 |  |  | 2023 |
Provision for credit losses – loans |  | $ | 13,984 |  |  | $ | 8,424 |
Reversal of credit losses - unfunded commitments |  |  | (184 | ) |  |  | (224 | )
Provision for credit losses – total |  | $ | 13,800 |  |  | $ | 8,200 |

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- Definition The entire disclosure for claims held for amounts due to entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/310-10/tableOfContent Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 835 -SubTopic 30 -Name Accounting Standards Codification -Section 45 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482925/835-30-45-2 + Details
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