v3.24.1.1.u2

Portfolio Loans Receivable and Allowance for Credit Losses (Tables)

3 Months Ended

Mar. 31, 2024

Receivables [Abstract]

Schedule of Loans Receivable

The following is a summary of the major categories of total loans outstanding:

						March 31, 2024												December 31, 2023
(in thousands)						Amount						Percent						Amount						Percent
Real estate:
Residential						$	577,112					29		%				$	573,104					30		%
Commercial						736,316						37		%				684,229						35		%
Construction						290,016						15		%				290,108						15		%
Commercial and Industrial						254,577						13		%				239,208						13		%
Credit card, net of reserve(1)						111,898						6		%				123,331						7		%
Other consumer						738						—		%				950						—		%
Portfolio loans receivable, gross						1,970,657						100		%				1,910,930						100		%
Deferred origination fees, net						(6,132)												(7,642)
Allowance for credit losses						(29,350)												(28,610)
Portfolio loans receivable, net						$	1,935,175											$	1,874,678

_____________

(1)    Credit card loans are presented net of reserve for interest and fees.

Schedule of Allowance for Credit Losses on Loans Receivables

The following tables set forth the changes in the ACL and an allocation of the ACL by loan segment class for the three months ended March 31, 2024 and March 31, 2023.

(in thousands)						Beginning Balance												Provision (Release of Provision) for Credit Losses						Charge-Offs						Recoveries						Ending Balance
Three Months Ended March 31, 2024
Real estate:
Residential						$	5,518											$	633					$	(225)					$	—					$	5,926
Commercial						10,316												807						—						—						11,123
Construction						2,271												28						—						—						2,299
Commercial and Industrial						4,406												(306)						(98)						—						4,002
Credit card						6,087												1,567						(1,768)						104						5,990
Other consumer						12												(2)						—						—						10
Total						$	28,610											$	2,727					$	(2,091)					$	104					$	29,350

Three Months Ended March 31, 2023
Real estate:
Residential						$	4,283											$	1,125					$	—					$	—					$	5,408
Commercial						12,039												(2,165)						(943)						—						8,931
Construction						1,809												(56)						—						—						1,753
Commercial and Industrial						4,008												940						—						10						4,958
Credit card						5,033												1,818						(1,702)						2						5,151
Other consumer						17												(2)						—						—						15
Total						$	27,189											$	1,660					$	(2,645)					$	12					$	26,216

Schedule of Past Due Loans Receivables

Past due loans, segregated by age and class of loans, as of March 31, 2024 and December 31, 2023 were as follows:

Portfolio Loans Past Due
						Loans 30-59 Days Past Due						Loans 60-89 Days Past Due						Loans 90 or More Days Past Due						Total Past Due Loans						Current Loans						Total Portfolio Loans						Accruing Loans 90 or More Days Past Due						Nonaccrual Loans
(in thousands)
March 31, 2024
Real estate:
Residential						$	2,479					$	818					$	6,303					$	9,600					$	567,512					$	577,112					$	—					$	6,762
Commercial						1,391						11,610						551						13,552						722,764						736,316						—						3,064
Construction						—						661						3,876						4,537						285,479						290,016						—						3,868
Commercial and Industrial						2,008						1,353						448						3,809						250,768						254,577						—						667
Credit card						5,544						5,494						621						11,659						100,239						111,898						621						—
Other consumer						—						—						—						—						738						738						—						—
Total						$	11,422					$	19,936					$	11,799					$	43,157					$	1,927,500					$	1,970,657					$	621					$	14,361
						Loans 30-59 Days Past Due						Loans 60-89 Days Past Due						Loans 90 or More Days Past Due						Total Past Due Loans						Current Loans						Total Portfolio Loans						Accruing Loans 90 or More Days Past Due						Nonaccrual Loans
December 31, 2023
Real estate:
Residential						$	2,201					$	3,096					$	11,066					$	16,363					$	556,741					$	573,104					$	17					$	11,398
Commercial						1,577						322						582						2,481						681,748						684,229						—						582
Construction						—						1,165						3,296						4,461						285,647						290,108						—						3,288
Commercial and Industrial						1,356						74						454						1,884						237,324						239,208						—						774
Credit card						7,767						6,877						519						15,163						108,168						123,331						519						—
Other consumer						—						—						—						—						950						950						—						—
Total						$	12,901					$	11,534					$	15,917					$	40,352					$	1,870,578					$	1,910,930					$	536					$	16,042

Schedule of Non-Accrual Loans

The following presents the nonaccrual loans as of March 31, 2024 and December 31, 2023:

						March 31, 2024
						Nonaccrual with No Allowance for Credit Loss						Nonaccrual with an Allowance for Credit Loss						Total Nonaccrual Loans						Interest Recognized on Nonaccrual Loans
(in thousands)
Real estate:
Residential						$	6,111					$	651					$	6,762					$	221
Commercial						3,064						—						3,064						93
Construction						3,868						—						3,868						180
Commercial and Industrial						439						228						667						56
Total						$	13,482					$	879					$	14,361					$	550
						December 31, 2023
						Nonaccrual with No Allowance for Credit Loss						Nonaccrual with an Allowance for Credit Loss						Total Nonaccrual Loans						Interest Recognized on Nonaccrual Loans
Real estate:
Residential									$	11,152											$	246								$	11,398					$	236
Commercial						582						—						582						46
Construction						3,288						—						3,288						185
Commercial and Industrial						598						176						774						71
Total						$	15,620					$	422					$	16,042					$	538

Collateral dependent loans amortized cost
(in thousands)						March 31, 2024						December 31, 2023
Real estate:
Residential						$	5,345					$	11,152
Commercial						3,064						582
Construction						5,038						3,288
Commercial and Industrial						537						657
Total						$	13,984					$	15,679

Schedule of Loans Receivables Credit Quality Indicators

The following table presents the balances of classified loans based on the most recent credit quality indicator analysis. Classified loans include Special Mention, Substandard and Doubtful loans. Pass classified loans include loans graded exceptional, very good, good, satisfactory, and pass/watch. Credit card loans are ungraded as they are not individually graded. Charge-offs presented represent gross charge-offs recognized in the current period:

March 31, 2024						Term Loans by Origination Year
(in thousands)						2024						2023						2022						2021						2020						Prior						Revolving						Total
Residential – Real estate
Pass						$	29,966					$	134,102					$	132,476					$	76,409					$	75,128					$	117,615					$	—					$	565,696
Special Mention						—						—						—						132						3,647						285						—						4,064
Substandard						—						—						33						332						—						6,987						—						7,352
Doubtful						—						—						—						—						—						—						—						—
Total						29,966						134,102						132,509						76,873						78,775						124,887						—						577,112
Commercial – Real estate
Pass						52,595						63,615						172,972						141,121						77,031						208,492						—						715,826
Special Mention						—						—						18,495						—						—						801						—						19,296
Substandard						—						—						—						—						—						1,194						—						1,194
Doubtful						—						—						—						—						—						—						—						—
Total						52,595						63,615						191,467						141,121						77,031						210,487						—						736,316
Construction – Real estate
Pass						16,217						144,267						59,095						41,338						15,234						8,981						—						285,132
Special Mention						—						661						—						—						—						—						—						661
Substandard						—						—						—						—						1,568						2,655						—						4,223
Doubtful						—						—						—						—						—						—						—						—
Total						16,217						144,928						59,095						41,338						16,802						11,636						—						290,016
Commercial and Industrial
Pass						24,939						71,139						66,282						27,157						8,436						51,796						—						249,749
Special Mention						—						—						805						—						2,367						312						—						3,484
Substandard						—						46						619						207						—						472						—						1,344
Doubtful						—						—						—						—						—						—						—						—
Total						24,939						71,185						67,706						27,364						10,803						52,580						—						254,577
Other consumer
Pass						—						—						262						134						111						231						—						738
Special Mention						—						—						—						—						—						—						—						—
Substandard						—						—						—						—						—						—						—						—
Doubtful						—						—						—						—						—						—						—						—
Total						—						—						262						134						111						231						—						738
Credit card
Ungraded						—						—						—						—						—						—						111,898						111,898
Portfolio loans receivable, gross						$	123,717					$	413,830					$	451,039					$	286,830					$	183,522					$	399,821					$	111,898					$	1,970,657

March 31, 2024
(in thousands)						2024						2023						2022						2021						2020						Prior						Revolving						Total
Gross Charge-offs
Residential						$	—					$	—					$	—					$	—					$	—					$	225					$	—					$	225
Commercial and Industrial						—						98						—						—						—						—						—						98
Credit card						—						—						—						—						—						—						1,768						1,768
Total						$	—					$	98					$	—					$	—					$	—					$	225					$	1,768					$	2,091

December 31, 2023						Term Loans by Origination Year
(in thousands)						2023						2022						2021						2020						2019						Prior						Revolving						Total
Residential – Real estate
Pass						$	140,394					$	137,362					$	76,556					$	76,938					$	36,122					$	88,055					$	—					$	555,427
Special Mention						—						—						134						3,670						1,176						288						—						5,268
Substandard						—						33						—						—						26						12,350						—						12,409
Doubtful						—						—						—						—						—						—						—						—
Total						140,394						137,395						76,690						80,608						37,324						100,693						—						573,104
Commercial – Real estate
Pass						62,095						185,776						145,756						68,748						96,238						116,347						—						674,960
Special Mention						—						6,897						—						—						805						985						—						8,687
Substandard						—						—						—						—						582						—						—						582
Doubtful						—						—						—						—						—						—						—						—
Total						62,095						192,673						145,756						68,748						97,625						117,332						—						684,229
Construction – Real estate
Pass						142,157						72,240						46,180						16,859						6,246						2,517						—						286,199
Special Mention						—						—						—						—						—						614						—						614
Substandard						—						—						—						1,254						597						1,444						—						3,295
Doubtful						—						—						—						—						—						—						—						—
Total						142,157						72,240						46,180						18,113						6,843						4,575						—						290,108
Commercial and Industrial
Pass						70,540						71,689						28,007						9,364						18,036						37,392						—						235,028
Special Mention						—						156						—						2,406						47						273						—						2,882
Substandard						30						814						211						—						42						201						—						1,298
Doubtful						—						—						—						—						—						—						—						—
Total						70,570						72,659						28,218						11,770						18,125						37,866						—						239,208
Other consumer
Pass						75						278						147						116						—						334						—						950
Special Mention						—						—						—						—						—						—						—						—
Substandard						—						—						—						—						—						—						—						—
Doubtful						—						—						—						—						—						—						—						—
Total						75						278						147						116						—						334						—						950
Credit card
Ungraded						—						—						—						—						—						—						123,331						123,331
Portfolio loans receivable, gross						$	415,291					$	475,245					$	296,991					$	179,355					$	159,917					$	260,800					$	123,331					$	1,910,930

December 31, 2023
(in thousands)						2023						2022						2021						2020						2019						Prior						Revolving						Total
Gross Charge-offs
Residential						$	—					$	—					$	—					$	—					$	—					$	670					$	—					$	670
Commercial						—						—						—						—						943						—						—						943
Commercial and Industrial						—						98						—						—						—						—						—						98
Credit card						—						—						—						—						—						—						7,076						7,076
Total						$	—					$	98					$	—					$	—					$	943					$	670					$	7,076					$	8,787

Schedule of Outstanding Loan Commitments

Outstanding loan commitments were as follows:

(in thousands)						March 31, 2024						December 31, 2023
Unused lines of credit
Real Estate:
Residential						$	17,812					$	15,436
Residential - Home Equity						43,225						43,892
Commercial						29,542						20,424
Construction						116,614						98,777
Commercial and Industrial						52,627						42,751
Credit card(1)						128,374						114,882
Other consumer						311						310
Total						$	388,505					$	336,472
Letters of credit						$	4,641					$	4,641

_______________

(1)Outstanding loan commitments in the credit card portfolio include $108.4 million and $98.2 million in secured and partially secured balances as of March 31, 2024 and December 31, 2023, respectively.

Schedule of Credit Losses for Financing Receivables

Activity for this account is as follows for the periods presented:

						Three months ended
(in thousands)						March 31, 2024						March 31, 2023
Balance at beginning of period						$	806					$	1,682
Impact of adopting the CECL standard on January 1, 2023						—						(775)
Provision for (release of) credit losses on unfunded commitments						142						(19)
Balance at end of period						$	948					$	888

Activity in this reserve is as follows for the periods presented:

						Three months ended
(in thousands)						March 31, 2024						March 31, 2023
Balance at beginning of period						$	985					$	1,174
Provision for mortgage loan put-back reserve						13						5
Balance at end of period						$	998					$	1,179

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