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Note 6 - Loans and the Allowance for Credit Losses | 6 Months Ended
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Jun. 30, 2025
Notes to Financial Statements |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 6. Loans and the Allowance for Credit Losses Loans Receivable – The following table sets forth the composition of the Company’s loan portfolio segments, including net deferred loan fees, as of June 30, 2025 and December 31, 2024:
|  | June 30, 2025 |  |  | December 31, 2024 |
|  | (dollars in thousands) |
Commercial |  | $ | 1,607,528 |  |  | $ | 1,532,730 |
Commercial real estate |  |  | 7,624,033 |  |  |  | 5,880,679 |
Commercial construction |  |  | 681,222 |  |  |  | 616,246 |
Residential real estate |  |  | 1,254,646 |  |  |  | 249,691 |
Consumer |  |  | 1,709 |  |  |  | 1,136 |
Gross loans |  |  | 11,169,138 |  |  |  | 8,280,482 |
Net deferred loan fees |  |  | (4,661 | ) |  |  | (5,672 | )
Total loans receivable |  | $ | 11,164,477 |  |  | $ | 8,274,810 |
As of June 30, 2025 and December 31, 2024, loans totaling approximately $7.8 billion and $5.8 billion, respectively, were pledged to secure borrowings from the FHLB of New York and the Federal Reserve Bank of New York. Loans held-for-sale – The following table sets forth the composition of the Company's loans held-for-sale portfolio as of June 30, 2025 and December 31, 2024.
|  | June 30, 2025 |  |  | December 31, 2024 |
|  | (dollars in thousands) |
Residential real estate |  | $ | 1,027 |  |  | $ | 743 |
Loans Receivable on Nonaccrual Status - The following tables present the carrying value of nonaccrual loans with an ACL and the carrying value of nonaccrual loans without an ACL as of June 30, 2025 and December 31, 2024:
|  | June 30, 2025 |
|  | Nonaccrual loans with ACL |  |  | Nonaccrual loans without ACL |  |  | Total nonaccrual loans |
|  | (dollars in thousands) |
Commercial |  | $ | 2,175 |  |  | $ | 11,295 |  |  | $ | 13,470 |
Commercial real estate |  |  | 666 |  |  |  | 20,653 |  |  |  | 21,319 |
Commercial construction |  |  | - |  |  |  | 2,204 |  |  |  | 2,204 |
Residential real estate |  |  | 440 |  |  |  | 1,795 |  |  |  | 2,235 |
Total |  | $ | 3,281 |  |  | $ | 35,947 |  |  | $ | 39,228 |
|  | 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 |
Nonaccrual loans include both smaller balance homogeneous loans that are collectively evaluated and loans that are individually evaluated. Purchased Credit-Deteriorated Loans ("PCD") - PCD loans are defined as a loan or group of loans that have experienced more-than-insignificant credit deterioration since origination. The following table presents the recorded investment of those loans as of June 30, 2025.
(dollars in thousands) |  | June 30, 2025 |
Commercial |  | $ | 7,443 |
Commercial real estate |  |  | 228,576 |
Commercial construction |  |  | — |
Residential real estate |  |  | 1,822 |
Consumer |  |  | — |
Total purchased credit-deteriorated loans |  |  | 237,841 |
Within the PCD loan portfolio as of June 30, 2025, there is a pool of rent-regulated loans amounting to $208.2 million. These loans are associated with multifamily properties located in the five boroughs of New York City, most of which are entirely or predominantly rent-regulated. This specific pool is subject to unique stressors, primarily due to the 2019 New York rent laws, which restricted rent increases while operating in an environment of escalating expenses. 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 “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 credit quality or inadequately protect the Company’s credit position at some future date. Assets are classified “Substandard” if the asset has a well-defined weakness that requires management’s attention to a greater degree than for loans classified 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 purposes of the table below. The following table presents loans by origination, risk designation and gross charge-offs as of and during the six months ended June 30, 2025 (dollars in thousands):
|  | Term loans amortized cost basis by origination year |  |  |  |  |  |  |
|  | 2025 |  |  | 2024 |  |  | 2023 |  |  | 2022 |  |  | 2021 |  |  | Prior |  |  | Revolving Loans |  |  | Total Gross Loans |
Commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 61,680 |  |  | $ | 87,123 |  |  | $ | 142,634 |  |  | $ | 196,011 |  |  | $ | 228,357 |  |  | $ | 123,836 |  |  | $ | 712,620 |  |  | $ | 1,552,261 |
Special mention |  |  | - |  |  |  | 1,896 |  |  |  | - |  |  |  | 314 |  |  |  | - |  |  |  | 4,999 |  |  |  | 596 |  |  |  | 7,805 |
Substandard |  |  | - |  |  |  | - |  |  |  | 3,857 |  |  |  | 4,576 |  |  |  | 2,603 |  |  |  | 18,771 |  |  |  | 17,655 |  |  |  | 47,462 |
Doubtful |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Total commercial |  | $ | 61,680 |  |  | $ | 89,019 |  |  | $ | 146,491 |  |  | $ | 200,901 |  |  | $ | 230,960 |  |  | $ | 147,606 |  |  | $ | 730,871 |  |  | $ | 1,607,528 |
YTD gross charge-offs |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 1,669 |  |  | $ | - |  |  | $ | 467 |  |  | $ | 875 |  |  | $ | 3,011 |
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 291,020 |  |  | $ | 471,351 |  |  | $ | 376,511 |  |  | $ | 1,779,950 |  |  | $ | 1,864,697 |  |  | $ | 2,210,694 |  |  | $ | 422,045 |  |  | $ | 7,416,268 |
Special mention |  |  | - |  |  |  | 4,051 |  |  |  | - |  |  |  | 47,290 |  |  |  | 841 |  |  |  | 77,477 |  |  |  | - |  |  |  | 129,659 |
Substandard |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 15,069 |  |  |  | 8,265 |  |  |  | 54,772 |  |  |  | - |  |  |  | 78,106 |
Doubtful |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Total commercial real estate |  | $ | 291,020 |  |  | $ | 475,402 |  |  | $ | 376,511 |  |  | $ | 1,842,309 |  |  | $ | 1,873,803 |  |  | $ | 2,342,943 |  |  | $ | 422,045 |  |  | $ | 7,624,033 |
YTD gross charge-offs |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 5,582 |  |  | $ | - |  |  | $ | 5,582 |
Commercial construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 487 |  |  | $ | 25,440 |  |  | $ | - |  |  | $ | 3,663 |  |  | $ | - |  |  | $ | 4,362 |  |  | $ | 645,066 |  |  | $ | 679,018 |
Special mention |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Substandard |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 2,204 |  |  |  | 2,204 |
Doubtful |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Total commercial construction |  | $ | 487 |  |  | $ | 25,440 |  |  | $ | - |  |  | $ | 3,663 |  |  | $ | - |  |  | $ | 4,362 |  |  | $ | 647,270 |  |  | $ | 681,222 |
YTD gross charge-offs |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |
Residential real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 28,589 |  |  | $ | 26,696 |  |  | $ | 39,426 |  |  | $ | 261,820 |  |  | $ | 167,204 |  |  | $ | 663,073 |  |  | $ | 60,522 |  |  | $ | 1,247,330 |
Special mention |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 627 |  |  |  | 2,750 |  |  |  | 3,377 |
Substandard |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 632 |  |  |  | - |  |  |  | 3,174 |  |  |  | 133 |  |  |  | 3,939 |
Doubtful |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Total residential real estate |  | $ | 28,589 |  |  | $ | 26,696 |  |  | $ | 39,426 |  |  | $ | 262,452 |  |  | $ | 167,204 |  |  | $ | 666,874 |  |  | $ | 63,405 |  |  | $ | 1,254,646 |
YTD gross charge-offs |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 1,554 |  |  | $ | 19 |  |  | $ | 21 |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 115 |  |  | $ | 1,709 |
Special mention |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Substandard |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Doubtful |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Total consumer |  | $ | 1,554 |  |  | $ | 19 |  |  | $ | 21 |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 115 |  |  | $ | 1,709 |
YTD gross charge-offs |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 1 |  |  | $ | 1 |
Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 383,330 |  |  | $ | 610,629 |  |  | $ | 558,592 |  |  | $ | 2,241,444 |  |  | $ | 2,260,258 |  |  | $ | 3,001,965 |  |  | $ | 1,840,368 |  |  | $ | 10,896,586 |
Special mention |  |  | - |  |  |  | 5,947 |  |  |  | - |  |  |  | 47,604 |  |  |  | 841 |  |  |  | 83,103 |  |  |  | 3,346 |  |  |  | 140,841 |
Substandard |  |  | - |  |  |  | - |  |  |  | 3,857 |  |  |  | 20,277 |  |  |  | 10,868 |  |  |  | 76,717 |  |  |  | 19,992 |  |  |  | 131,711 |
Doubtful |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Grand total |  | $ | 383,330 |  |  | $ | 616,576 |  |  | $ | 562,449 |  |  | $ | 2,309,325 |  |  | $ | 2,271,967 |  |  | $ | 3,161,785 |  |  | $ | 1,863,706 |  |  | $ | 11,169,138 |
YTD gross charge-offs |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 1,669 |  |  | $ | - |  |  | $ | 6,049 |  |  | $ | 876 |  |  | $ | 8,594 |
The following table presents loans by origination, risk designation and gross charge-offs as of and for the year ended December 31, 2024 (dollars in thousands):
|  | Term loans amortized cost basis by origination year |  |  |  |  |  |  |
|  | 2024 |  |  | 2023 |  |  | 2022 |  |  | 2021 |  |  | 2020 |  |  | Prior |  |  | Revolving Loans |  |  | Total 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 |
Collateral Dependent Loans: The following tables present the amortized cost basis of collateral-dependent loans by loan segment as of June 30, 2025 and December 31, 2024:
|  | June 30, 2025 |
|  | Real Estate |  |  | Other |  |  | Total |
|  | (dollars in thousands) |
Commercial |  | $ | 9,023 |  |  | $ | 9,246 |  |  | $ | 18,269 |
Commercial real estate |  |  | 249,896 |  |  |  | - |  |  |  | 249,896 |
Commercial construction |  |  | 2,204 |  |  |  | - |  |  |  | 2,204 |
Residential real estate |  |  | 3,858 |  |  |  | - |  |  |  | 3,858 |
Total |  | $ | 264,981 |  |  | $ | 9,246 |  |  | $ | 274,227 |
|  | 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 |
Aging Analysis - The following tables present the aging of the amortized cost in past-due loans as of June 30, 2025 and December 31, 2024:
|  | June 30, 2025 |
|  | 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 |
|  | (dollars in thousands) |
Commercial |  | $ | 151 |  |  | $ | 409 |  |  | $ | - |  |  | $ | 13,470 |  |  | $ | 14,030 |  |  | $ | 1,593,498 |  |  | $ | 1,607,528 |
Commercial real estate |  |  | - |  |  |  | 12,800 |  |  |  | - |  |  |  | 21,319 |  |  |  | 34,119 |  |  |  | 7,589,914 |  |  |  | 7,624,033 |
Commercial construction |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 2,204 |  |  |  | 2,204 |  |  |  | 679,018 |  |  |  | 681,222 |
Residential real estate |  |  | 227 |  |  |  | 930 |  |  |  | - |  |  |  | 2,235 |  |  |  | 3,392 |  |  |  | 1,251,254 |  |  |  | 1,254,646 |
Consumer |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 1,709 |  |  |  | 1,709 |
Total |  | $ | 378 |  |  | $ | 14,139 |  |  | $ | - |  |  | $ | 39,228 |  |  | $ | 53,745 |  |  | $ | 11,115,393 |  |  | $ | 11,169,138 |
|  | 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 |
|  | (dollars in thousands) |
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 |
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.
|  | June 30, 2025 |
|  | Commercial |  |  | Commercial real estate |  |  | Commercial construction |  |  | Residential real estate |  |  | Consumer |  |  | Total |
|  | (dollars in thousands) |
Allowance for credit losses – loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually analyzed |  | $ | 641 |  |  | $ | 33 |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 674 |
Collectively evaluated |  |  | 19,358 |  |  |  | 72,914 |  |  |  | 5,422 |  |  |  | 14,461 |  |  |  | 29 |  |  |  | 112,184 |
Acquired with deteriorated credit quality |  |  | 962 |  |  |  | 42,256 |  |  |  | - |  |  |  | 114 |  |  |  | - |  |  |  | 43,332 |
Total |  | $ | 20,961 |  |  | $ | 115,203 |  |  | $ | 5,422 |  |  | $ | 14,575 |  |  | $ | 29 |  |  | $ | 156,190 |
Gross loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually analyzed |  | $ | 12,908 |  |  | $ | 21,320 |  |  | $ | 2,204 |  |  | $ | 2,036 |  |  | $ | - |  |  | $ | 38,468 |
Collectively evaluated |  |  | 1,587,178 |  |  |  | 7,374,137 |  |  |  | 679,018 |  |  |  | 1,250,788 |  |  |  | 1,709 |  |  |  | 10,892,830 |
Acquired with deteriorated credit quality |  |  | 7,442 |  |  |  | 228,576 |  |  |  | - |  |  |  | 1,822 |  |  |  | - |  |  |  | 237,840 |
Total |  | $ | 1,607,528 |  |  | $ | 7,624,033 |  |  | $ | 681,222 |  |  | $ | 1,254,646 |  |  | $ | 1,709 |  |  | $ | 11,169,138 |
|  | 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 |
Activity in the Company’s ACL for loans for the three and six months ended June 30, 2025 and 2024 are summarized in the tables below.
|  | Three Months Ended June 30, 2025 |
|  | Commercial |  |  | Commercial real estate |  |  | Commercial construction |  |  | Residential real estate |  |  | Consumer |  |  | Total |
|  | (dollars in thousands) |
Balance as of March 31, 2025 |  | $ | 18,031 |  |  | $ | 54,586 |  |  | $ | 5,030 |  |  | $ | 4,752 |  |  | $ | 4 |  |  | $ | 82,403 |
Charge-offs |  |  | (3,011 | ) |  |  | (2,027 | ) |  |  | - |  |  |  | - |  |  |  | (1 | ) |  |  | (5,039 | )
Recoveries |  |  | 23 |  |  |  | 90 |  |  |  | - |  |  |  | 5 |  |  |  | - |  |  |  | 118 |
Provision for credit losses - loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Initial provision related to acquisition |  |  | 985 |  |  |  | 16,017 |  |  |  | 78 |  |  |  | 10,217 |  |  |  | 10 |  |  |  | 27,307 |
Operating provision for credit losses |  |  | 3,968 |  |  |  | 4,281 |  |  |  | 314 |  |  |  | (514 | ) |  |  | 16 |  |  |  | 8,065 |
Nonaccretable credit marks on PCD loans |  |  | 965 |  |  |  | 42,256 |  |  |  | - |  |  |  | 115 |  |  |  | - |  |  |  | 43,336 |
Balance as of June 30, 2025 |  | $ | 20,961 |  |  | $ | 115,203 |  |  | $ | 5,422 |  |  | $ | 14,575 |  |  | $ | 29 |  |  | $ | 156,190 |
|  | Six Months Ended June 30, 2025 |
|  | Commercial |  |  | Commercial real estate |  |  | Commercial construction |  |  | Residential real estate |  |  | Consumer |  |  | Total |
|  | (dollars in thousands) |
Balance as of December 31, 2024 |  | $ | 18,278 |  |  | $ | 54,777 |  |  | $ | 5,064 |  |  | $ | 4,561 |  |  | $ | 5 |  |  | $ | 82,685 |
Charge-offs |  |  | (3,011 | ) |  |  | (5,582 | ) |  |  | - |  |  |  | - |  |  |  | (1 | ) |  |  | (8,594 | )
Recoveries |  |  | 178 |  |  |  | 90 |  |  |  | - |  |  |  | 5 |  |  |  | - |  |  |  | 273 |
Provision for credit losses - loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Initial provision related to acquisition - loans |  |  | 985 |  |  |  | 16,017 |  |  |  | 78 |  |  |  | 10,217 |  |  |  | 10 |  |  |  | 27,307 |
Operating provision for credit losses |  |  | 3,566 |  |  |  | 7,645 |  |  |  | 280 |  |  |  | (323 | ) |  |  | 15 |  |  |  | 11,183 |
Nonaccretable credit marks on PCD loans |  |  | 965 |  |  |  | 42,256 |  |  |  | - |  |  |  | 115 |  |  |  | - |  |  |  | 43,336 |
Balance as of June 30, 2025 |  | $ | 20,961 |  |  | $ | 115,203 |  |  | $ | 5,422 |  |  | $ | 14,575 |  |  | $ | 29 |  |  | $ | 156,190 |
|  | Three Months Ended June 30, 2024 |
|  | Commercial |  |  | Commercial real estate |  |  | Commercial construction |  |  | Residential real estate |  |  | Consumer |  |  | Total |
|  | (dollars in thousands) |
Balance as of March 31, 2024 |  | $ | 20,735 |  |  | $ | 52,794 |  |  | $ | 5,011 |  |  | $ | 4,326 |  |  | $ | 3 |  |  | $ | 82,869 |
Charge-offs |  |  | - |  |  |  | (3,595 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (3,595 | )
Recoveries |  |  | 324 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 324 |
(Reversal of) provision for credit losses – loans |  |  | (1,039 | ) |  |  | 3,899 |  |  |  | (539 | ) |  |  | 158 |  |  |  | - |  |  |  | 2,479 |
Balance as of June 30, 2024 |  | $ | 20,020 |  |  | $ | 53,098 |  |  | $ | 4,472 |  |  | $ | 4,484 |  |  | $ | 3 |  |  | $ | 82,077 |
|  | Six Months Ended June 30, 2024 |
|  | Commercial |  |  | Commercial real estate |  |  | Commercial construction |  |  | Residential real estate |  |  | Consumer |  |  | Total |
|  | (dollars in thousands) |
Balance as of December 31, 2023 |  | $ | 20,632 |  |  | $ | 52,278 |  |  | $ | 4,739 |  |  | $ | 4,320 |  |  | $ | 5 |  |  | $ | 81,974 |
Charge-offs |  |  | (300 | ) |  |  | (6,480 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (6,780 | )
Recoveries |  |  | 347 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 347 |
(Reversal of) provision for credit losses – loans |  |  | (659 | ) |  |  | 7,300 |  |  |  | (267 | ) |  |  | 164 |  |  |  | (2 | ) |  |  | 6,536 |
Balance as of June 30, 2024 |  | $ | 20,020 |  |  | $ | 53,098 |  |  | $ | 4,472 |  |  | $ | 4,484 |  |  | $ | 3 |  |  | $ | 82,077 |
Loan Modifications to Borrowers Experiencing Financial Difficulty: The following table presents the amortized cost basis of loans to borrowers experiencing financial difficulty that were modified during the three and six months ended June 30, 2025. The modification percentage represents the total loans modified during the three and six months ended as a percentage of the total gross loan balances as of June 30, 2025.
|  | Amortized Cost Basis at Time of Modification |  |  |  |  |  |  |  |  |
|  | Term Extension |  |  | Payment Deferral |  |  | Total |  |  | Gross Loans at June 30, 2025 |  |  | Modification % (Modified Loans/ Gross Loans) |
June 30, 2025 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  | $ | 6,491 |  |  | $ | 19,461 |  |  | $ | 25,952 |  |  | $ | 1,607,528 |  |  |  | 1.61 | %
Commercial real estate |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 7,624,033 |  |  |  | - |
Commercial construction |  |  | 8,419 |  |  |  | - |  |  |  | 8,419 |  |  |  | 681,222 |  |  |  | 1.24 |
Residential real estate |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 1,254,646 |  |  |  | - |
Consumer |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 1,709 |  |  |  | - |
Total |  | $ | 14,910 |  |  | $ | 19,461 |  |  | $ | 34,371 |  |  | $ | 11,169,138 |  |  |  | 0.31 | %
The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty during the three and six months ended June 30, 2025.
|  | Weighted Average Term Extension (Months) |  |  | Weighted Average Payment Deferral (Months) |
June 30, 2025 |  |  |  |  |  |  |  |
Commercial |  |  | 3 |  |  |  | 3 |
Commercial real estate |  |  | - |  |  |  | - |
Commercial construction |  |  | 6 |  |  |  | - |
Residential real estate |  |  | - |  |  |  | - |
Consumer |  |  | - |  |  |  | - |
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 twelve months through June 30, 2025.
|  | Current |  |  | 30-89 Days Past Due |  |  | 90 Days or Greater Past Due |
June 30, 2025 |  |  |  |  |  |  |  |  |  |  |  |
(dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  | $ | 26,285 |  |  | $ | - |  |  | $ | - |
Commercial real estate |  |  | 63,804 |  |  |  | - |  |  |  | - |
Commercial construction |  |  | 8,419 |  |  |  | - |  |  |  | - |
Residential real estate |  |  | - |  |  |  | - |  |  |  | - |
Consumer |  |  | - |  |  |  | - |  |  |  | - |
Total |  | $ | 98,508 |  |  | $ | - |  |  | $ | - |
There were no modification to borrowers experiencing financial difficulty during the three months ended March 31, 2025. During the three and six months ended June 30, 2025 and June 30, 2024, the Company had no commitments to lend additional funds to borrowers experiencing financial difficulty for which the Company modified the terms of the loans in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, or a term extension during the current period. There were no loans to borrowers experiencing financial difficulty that had a payment default during the three and six months ended June 30, 2025 and 2024 and were modified in the twelve months prior to that default. Default is determined at 90 or more days past due, upon charge-off, or upon foreclosure. Modified loans in default are individually evaluated for the allowance for credit losses or if the modified loan is deemed uncollectible, the loan, or a portion of the loan, is written off and the allowance for credit losses is adjusted accordingly. Allowance for Credit Losses for Unfunded Commitments The Company has recorded an ACL for unfunded credit commitments, which was recorded in other liabilities. The provision is recorded within the provision for credit losses on the Company’s income statement. The following tables presents a roll forward of the allowance for credit losses for unfunded commitments for the three and six months ended June 30, 2025 and 2024:
|  | Three Months Ended |  |  | Three Months Ended |
|  | June 30, |  |  | June 30, |
|  | 2025 |  |  | 2024 |
|  | (dollars in thousands) |
Balance at beginning of period |  | $ | 3,009 |  |  | $ | 2,754 |
Provision for credit losses – unfunded commitments |  |  | 328 |  |  |  | 21 |
Balance at end of period |  | $ | 3,337 |  |  | $ | 2,775 |
|  | Six Months Ended |  |  | Six Months Ended |
|  | June 30, |  |  | June 30, |
|  | 2025 |  |  | 2024 |
|  | (dollars in thousands) |
Balance at beginning of period |  | $ | 2,627 |  |  | $ | 2,811 |
Provision for (reversal of) allowance for credit losses – unfunded commitments |  |  | 710 |  |  |  | (36 | )
Balance at end of period |  | $ | 3,337 |  |  | $ | 2,775 |
Components of Provision for Credit Losses The following tables summarizes the provision for (reversal of) credit losses for the three and six months ended June 30, 2025 and 2024:
|  | Three Months Ended |  |  | Three Months Ended |
|  | June 30, |  |  | June 30, |
|  | 2025 |  |  | 2024 |
|  | (dollars in thousands) |
Provision for credit losses – loans |  | $ | 8,065 |  |  | $ | 2,479 |
Initial provision related to acquisition - loans |  |  | 27,307 |  |  |  | - |
Provision for credit losses - unfunded commitments |  |  | 328 |  |  |  | 21 |
Provision for credit losses |  | $ | 35,700 |  |  | $ | 2,500 |
|  | Six Months Ended |  |  | Six Months Ended |
|  | June 30, |  |  | June 30, |
|  | 2025 |  |  | 2024 |
|  | (dollars in thousands) |
Provision for credit losses – loans |  | $ | 11,183 |  |  | $ | 6,536 |
Initial provision related to acquisition - loans |  |  | 27,307 |  |  |  | - |
Provision for (reversal of) credit losses - unfunded commitments |  |  | 710 |  |  |  | (36 | )
Provision for credit losses |  | $ | 39,200 |  |  | $ | 6,500 |

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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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