XML 29 R15.htm IDEA: XBRL DOCUMENT v3.25.0.1

Loans Receivable, Net

12 Months Ended

Dec. 31, 2024

Receivables [Abstract]

Loans Receivable, Net

Loans Receivable, Net

Loans receivable, net at December 31, 2024 and 2023 consisted of the following (in thousands):

						December 31,
						2024						2023
Commercial:
Commercial real estate - investor						$	5,287,683					$	5,353,974
Commercial real estate - owner occupied						902,219						943,891
Commercial and industrial						647,945						666,532
Total commercial						6,837,847						6,964,397
Consumer:
Residential real estate						3,049,763						2,979,534
Home equity loans and lines and other consumer (“other consumer”)						230,462						250,664
Total consumer						3,280,225						3,230,198
Total loans receivable						10,118,072						10,194,595
Deferred origination costs, net of fees						10,964						9,263
Allowance for loan credit losses						(73,607)						(67,137)
Total loans receivable, net						$	10,055,429					$	10,136,721

The Company categorizes all loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as: current financial information, historical payment experience, credit documentation, and current economic trends, among other factors. The Company evaluates risk ratings on an ongoing basis. The Company uses the following definitions for risk ratings:

    Pass: Loans classified as Pass are well protected by the paying capacity and net worth of the borrower.

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

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

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

The following tables summarize total loans by year of origination, internally assigned credit grades, and risk characteristics (in thousands):

						2024						2023						2022						2021						2020						2019 and prior						Revolving lines of credit						Total
December 31, 2024
Commercial real estate - investor
Pass						$	75,225					$	140,863					$	1,142,790					$	1,290,047					$	510,906					$	1,264,536					$	750,607					$	5,174,974
Special Mention						15						—						21,285						—						—						18,225						4,477						44,002
Substandard						95						8						3,784						—						6,111						44,636						14,073						68,707
Total commercial real estate - investor						75,335						140,871						1,167,859						1,290,047						517,017						1,327,397						769,157						5,287,683
Commercial real estate - owner occupied
Pass						82,104						62,799						140,578						90,720						40,746						442,685						31,776						891,408
Special Mention						—						—						—						—						—						2,918						—						2,918
Substandard						—						—						—						—						256						7,503						134						7,893
Total commercial real estate - owner occupied						82,104						62,799						140,578						90,720						41,002						453,106						31,910						902,219
Commercial and industrial
Pass						81,867						30,084						35,469						14,276						3,873						180,695						278,217						624,481
Special Mention						—						4,735						—						—						235						16						96						5,082
Substandard						—						4,326						1,019						749						—						256						12,032						18,382
Total commercial and industrial						81,867						39,145						36,488						15,025						4,108						180,967						290,345						647,945
Residential real estate (1)
Pass						277,009						270,225						547,093						796,790						366,649						783,204						—						3,040,970
Special Mention						—						92						224						449						—						1,476						—						2,241
Substandard						215						415						1,583						445						—						3,894						—						6,552
Total residential real estate						277,224						270,732						548,900						797,684						366,649						788,574						—						3,049,763
Other consumer (1)
Pass						27,316						27,596						17,029						16,511						10,694						107,045						21,991						228,182
Special Mention						—						—						—						62						—						219						—						281
Substandard						—						97						18						343						—						1,541						—						1,999
Total other consumer						27,316						27,693						17,047						16,916						10,694						108,805						21,991						230,462
Total loans						$	543,846					$	541,240					$	1,910,872					$	2,210,392					$	939,470					$	2,858,849					$	1,113,403					$	10,118,072

(1)For residential real estate and other consumer loans, the Company evaluates credit quality based on the aging status of the loan and by payment activity.

						2023						2022						2021						2020						2019						2018 and prior						Revolving lines of credit						Total
December 31, 2023
Commercial real estate - investor
Pass						$	137,028					$	1,165,955					$	1,328,012					$	529,745					$	490,438					$	930,337					$	679,804					$	5,261,319
Special Mention						—						—						2,413						790						1,446						22,147						—						26,796
Substandard						—						—						648						3,750						13,275						48,186						—						65,859
Total commercial real estate - investor						137,028						1,165,955						1,331,073						534,285						505,159						1,000,670						679,804						5,353,974
Commercial real estate - owner occupied
Pass						66,642						120,280						103,104						59,179						102,703						441,713						21,052						914,673
Special Mention						—						—						—						—						1,272						8,314						—						9,586
Substandard						—						—						—						—						2,019						16,900						713						19,632
Total commercial real estate - owner occupied						66,642						120,280						103,104						59,179						105,994						466,927						21,765						943,891
Commercial and industrial
Pass						112,914						64,770						19,473						8,645						7,778						51,082						383,013						647,675
Special Mention						—						—						—						—						—						184						2,859						3,043
Substandard						—						622						117						—						145						1,385						13,545						15,814
Total commercial and industrial						112,914						65,392						19,590						8,645						7,923						52,651						399,417						666,532
Residential real estate (1)
Pass						283,296						916,153						564,515						388,392						223,247						600,118						—						2,975,721
Special Mention						—						—						—						—						131						271						—						402
Substandard						323						366						—						258						487						1,977						—						3,411
Total residential real estate						283,619						916,519						564,515						388,650						223,865						602,366						—						2,979,534
Other consumer (1)
Pass						32,859						19,918						20,737						12,675						12,937						118,486						30,658						248,270
Special Mention						—						172						—						—						—						386						—						558
Substandard						—						—						—						—						6						1,698						132						1,836
Total other consumer						32,859						20,090						20,737						12,675						12,943						120,570						30,790						250,664
Total loans						$	633,062					$	2,288,236					$	2,039,019					$	1,003,434					$	855,884					$	2,243,184					$	1,131,776					$	10,194,595

(1)For residential real estate and other consumer loans, the Company evaluates credit quality based on the aging status of the loan and by payment activity.

An analysis of the allowance for credit losses on loans for the years ended December 31, 2024 and 2023 was as follows (in thousands):

						Commercial Real Estate - Investor						Commercial Real Estate - Owner Occupied						Commercial and Industrial						Residential Real Estate						Other Consumer												Total
For the Year Ended December 31, 2024
Allowance for credit losses on loans
Balance at beginning of year						$	27,899					$	4,354					$	6,867					$	27,029					$	988											$	67,137
Initial allowance on acquired loans from Spring Garden						2,547						—						—						—						—												2,547
Provision (benefit) for credit losses						1,774						(569)						3,586						428						259												5,478
Charge-offs						(1,659)						—						—						(76)						(485)												(2,220)
Recoveries						219						32						18						206						190												665
Balance at end of year						$	30,780					$	3,817					$	10,471					$	27,587					$	952											$	73,607
For the Year Ended December 31, 2023
Allowance for credit losses on loans
Balance at beginning of year						$	21,070					$	4,423					$	5,695					$	24,530					$	1,106											$	56,824
Provision (benefit) for credit losses						15,173						(77)						1,276						2,456						(133)												18,695
Charge-offs						(8,350)						(6)						(129)						—						(208)												(8,693)
Recoveries						6						14						25						43						223												311
Balance at end of year						$	27,899					$	4,354					$	6,867					$	27,029					$	988											$	67,137

The following tables summarize gross charge-offs by vintage (in thousands):

												2023						2022						2021												2019 and prior						Total
For the Year Ended December 31, 2024
Commercial real estate – investor (1)												$	—					$	(13)					$	(46)											$	(1,600)					$	(1,659)
Residential real estate												(33)						(41)						—												(2)						(76)
Other consumer												—						—						—												(485)						(485)
Total charge-offs												$	(33)					$	(54)					$	(46)											$	(2,087)					$	(2,220)

																														2019						2018 and prior						Total
For the Year Ended December 31, 2023
Commercial real estate – investor (1)																														$	(8,350)					$	—					$	(8,350)
Commercial real estate – owner occupied																														—						(6)						(6)
Commercial and industrial																														—						(129)						(129)
Other consumer																														—						(208)						(208)
Total charge-offs																														$	(8,350)					$	(343)					$	(8,693)

(1) Gross charge-offs of $1.7 million and $8.4 million primarily related to a single commercial relationship which had partial charge-offs during the year ended December 31, 2024 and 2023, respectively. This was resolved via sale of collateral during 2024.

A loan is considered collateral dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral and, therefore, is classified as non-accruing. At December 31, 2024 and 2023, the Company had collateral dependent loans with an amortized cost balance as follows: commercial real estate - investor of $11.8 million and $15.2 million, respectively, commercial real estate - owner occupied of $4.8 million and $352,000, respectively, and commercial and industrial of $32,000 and $304,000, respectively. In addition, the Company had collateral dependent residential and consumer loans with an amortized cost balance of $8.6 million and $2.6 million at December 31, 2024 and 2023, respectively. 

The following table presents the recorded investment in non-accrual loans, by loan portfolio segment as of December 31, 2024 and 2023 (in thousands):

						December 31,
						2024						2023
Commercial real estate – investor (1) (2)						$	17,000					$	20,820
Commercial real estate – owner occupied						4,787						351
Commercial and industrial						32						304
Residential real estate						10,644						5,542
Other consumer						3,064						2,531
						$	35,527					$	29,548

(1) December 31, 2024 includes the addition of $4.8 million non-accrual loans related to the acquisition of Spring Garden.

(2) December 31, 2023 includes the exposure of $8.4 million of the single commercial real estate relationship resolved during 2024.

At December 31, 2024 and 2023, non-accrual loans were included in the allowance for credit loss calculation and the Company did not recognize or accrue interest income on these loans. At December 31, 2024 and 2023, there were no loans that were past due 90 days or greater and still accruing interest.

The following table presents the aging of the recorded investment in past due loans as of December 31, 2024 and 2023 by loan portfolio segment (in thousands):

						30-59 Days Past Due						60-89 Days Past Due						90 Days or Greater Past Due						Total Past Due						Loans Not Past Due						Total
December 31, 2024
Commercial real estate – investor (1)						$	4,624					$	8,880					$	10,877					$	24,381					$	5,263,302					$	5,287,683
Commercial real estate – owner occupied						941						—						1,392						2,333						899,886						902,219
Commercial and industrial						3						—						16						19						647,926						647,945
Residential real estate						18,518						2,242						6,551						27,311						3,022,452						3,049,763
Other consumer						1,060						282						1,999						3,341						227,121						230,462
						$	25,146					$	11,404					$	20,835					$	57,385					$	10,060,687					$	10,118,072
December 31, 2023
Commercial real estate – investor (2)						$	978					$	684					$	15,201					$	16,863					$	5,337,111					$	5,353,974
Commercial real estate – owner occupied						335						352						293						980						942,911						943,891
Commercial and industrial						163						—						145						308						666,224						666,532
Residential real estate						14,858						402						3,411						18,671						2,960,863						2,979,534
Other consumer						872						558						1,836						3,266						247,398						250,664
						$	17,206					$	1,996					$	20,886					$	40,088					$	10,154,507					$	10,194,595

(1) December 31, 2024 includes the addition of $7.4 million past due loans related to the acquisition of Spring Garden.

(2) December 31, 2023 includes the exposure of $8.4 million of the single commercial real estate relationship resolved during 2024.

Loan Modifications to Borrowers Experiencing Financial Difficulty

The Company adopted ASU 2022-02 on January 1, 2023. Since adoption, the Company has modified and may modify in the future certain loans to borrowers experiencing financial difficulty. These modifications may include a reduction in interest rate, an extension in term, principal forgiveness and/or other than insignificant payment delay. Upon the Company’s determination that a modified loan (or portion of a 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 subsequently adjusted by an amount equal to the total loss rate as applied to the reduced amortized cost basis. As of December 31, 2024 and 2023, loans with modifications to borrowers experiencing financial difficulty totaled $30.9 million and $8.9 million, respectively. There were no outstanding commitments to lend additional funds to such borrowers with loan modifications as of December 31, 2024 or December 31, 2023.

The following table presents loans modifications made to borrowers experiencing financial difficulty during the years ended December 31, 2024 and 2023 (in thousands):

						Term Extension						Interest Rate Reduction						Combination of Term Extension and Interest Rate Reduction						Other Than Insignificant Payment Delay						Combination of Term Extension, Interest Rate Reduction and Other Than Insignificant Payment Delay						Total						% of Total by Loan Portfolio Segment
For the Year Ended December 31, 2024
Commercial real estate – investor						$	—					$	4,858					$	7,000					$	5,685					$	1,604					$	19,147					0.36		%
Commercial real estate – owner occupied						—						—						—						2,822						—						2,822						0.31
Residential real estate						128						—						—						—						—						128						—
Other consumer						—						—						146						—						—						146						0.06
						$	128					$	4,858					$	7,146					$	8,507					$	1,604					$	22,243					0.22		%
For the Year Ended December 31, 2023
Commercial real estate – investor						$	—					$	—					$	7,759					$	—					$	—					$	7,759					0.14		%
Residential real estate						715						—						—						—						—						715						0.02
Other consumer						275						—						196						—						—						471						0.19
						$	990					$	—					$	7,955					$	—					$	—					$	8,945					0.09		%

The modifications during the periods presented had an insignificant financial effect on the Company.

The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table provides the performance of loans modified to borrowers experiencing financial difficulty during the twelve months ended December 31, 2024 and since adoption of the standard for December 31, 2023 (in thousands):

						Current						60 - 89 Days Past Due						90 Days or Greater Past Due						Total
December 31, 2024
Commercial real estate – investor						$	19,147					$	—					$	—					$	19,147
Commercial real estate – owner occupied						2,822						—						—						2,822
Residential real estate						—						—						128			(1)			128
Other consumer						—						—						146			(1)			146
						$	21,969					$	—					$	274					$	22,243
December 31, 2023
Commercial real estate – investor						$	7,759					$	—					$	—					$	7,759
Residential real estate						419						156						140			(2)			715
Other consumer						471						—						—						471
						$	8,649					$	156					$	140					$	8,945

(1) Represents one residential loan and one other consumer loan that defaulted during the year ended December 31, 2024, which had been modified within the last 12 months.

(2) Represents one residential loan that defaulted during the year ended December 31, 2023, which had been modified since the adoption of the standard.

X

- 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

Name:	us-gaap_LoansNotesTradeAndOtherReceivablesDisclosureTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- References

No definition available.

+ Details

Name:	us-gaap_ReceivablesAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration