v3.25.3

Portfolio Loans Receivable and Allowance for Credit Losses | 9 Months Ended
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Sep. 30, 2025
Receivables [Abstract] |
Portfolio Loans Receivable and Allowance for Credit Losses | Note 5 - Portfolio Loans Receivable and Allowance for Credit Losses The following is a summary of the major categories of total loans outstanding:
|  | September 30, 2025 |  | December 31, 2024
(in thousands) |  | Amount |  | Percent |  | Amount |  | Percent
Real estate: |  |  |  |  |  |  |  |
Residential |  | $ | 740,060 |  |  | 26 | % |  | $ | 688,552 |  |  | 26 | %
Commercial |  | 987,519 |  |  | 35 |  |  | 943,019 |  |  | 36 |
Construction |  | 344,290 |  |  | 12 |  |  | 321,252 |  |  | 12 |
Commercial and Industrial |  | 619,148 |  |  | 22 |  |  | 554,550 |  |  | 21 |
Credit card, net of reserve(1) |  | 136,483 |  |  | 5 |  |  | 127,766 |  |  | 5 |
Other consumer |  | 2,010 |  |  | — |  |  | 2,089 |  |  | — |
Portfolio loans receivable, gross |  | 2,829,510 |  |  | 100 | % |  | 2,637,228 |  |  | 100 | %
Deferred origination fees, net |  | (7,527) |  |  |  |  | (7,065) |  |  |
Allowance for credit losses |  | (53,045) |  |  |  |  | (48,652) |  |  |
Portfolio loans receivable, net |  | $ | 2,768,938 |  |  |  |  | $ | 2,581,511 |  |  |
_____________ (1) Credit card loans are presented net of reserve for interest and fees. The following tables set forth the changes in the ACL by loan segment class for the three and nine months ended September 30, 2025 and September 30, 2024. The ACL on loans at September 30, 2025 included $3.4 million on acquired purchased credit deteriorated (“PCD”) loans established as a measurement period adjustment to the Day 1 purchase accounting.
(in thousands) |  | Beginning Balance |  | Measurement Period Adjustment for Acquired PCD Loans |  | Provision (Release of Provision) for Credit Losses |  | Charge-Offs |  | Recoveries |  | Ending Balance
Three Months Ended September 30, 2025 |  |  |  |  |  |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |
Residential |  | $ | 6,772 |  |  | $ | — |  |  | $ | 249 |  |  | $ | — |  |  | $ | 7 |  |  | $ | 7,028 |
Commercial |  | 14,262 |  |  | — |  |  | 603 |  |  | — |  |  | — |  |  | 14,865 |
Construction |  | 3,410 |  |  | — |  |  | 321 |  |  | — |  |  | — |  |  | 3,731 |
Commercial and Industrial |  | 16,249 |  |  | 3,424 |  |  | 680 |  |  | (336) |  |  | — |  |  | 20,017 |
Credit card |  | 6,749 |  |  | — |  |  | 2,797 |  |  | (2,156) |  |  | 9 |  |  | 7,399 |
Other consumer |  | 5 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 5 |
Total |  | $ | 47,447 |  |  | $ | 3,424 |  |  | $ | 4,650 |  |  | $ | (2,492) |  |  | $ | 16 |  |  | $ | 53,045 |
Nine Months Ended September 30, 2025 |  |  |  |  |  |  |  |  |  |  |  |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |
Residential |  | $ | 6,945 |  |  | $ | — |  |  | $ | 76 |  |  | $ | (1) |  |  | $ | 8 |  |  | $ | 7,028 |
Commercial |  | 16,041 |  |  | — |  |  | 519 |  |  | (1,695) |  |  | — |  |  | 14,865 |
Construction |  | 2,973 |  |  | — |  |  | 1,022 |  |  | (264) |  |  | — |  |  | 3,731 |
Commercial and Industrial |  | 16,377 |  |  | 3,424 |  |  | 1,764 |  |  | (1,597) |  |  | 49 |  |  | 20,017 |
Credit card |  | 6,301 |  |  | — |  |  | 7,606 |  |  | (6,524) |  |  | 16 |  |  | 7,399 |
Other consumer |  | 15 |  |  | — |  |  | (10) |  |  | — |  |  | — |  |  | 5 |
Total |  | $ | 48,652 |  |  | $ | 3,424 |  |  | $ | 10,977 |  |  | $ | (10,081) |  |  | $ | 73 |  |  | $ | 53,045 |
(in thousands) |  | Beginning Balance |  |  |  |  |  | Provision (Release of Provision) for Credit Losses |  | Charge-Offs |  | Recoveries |  | Ending Balance
Three Months Ended September 30, 2024 |  |  |  |  |  |  |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential |  | $ | 5,999 |  |  |  |  |  |  | $ | (21) |  |  | $ | 4 |  |  | $ | — |  |  | $ | 5,982 |
Commercial |  | 11,682 |  |  |  |  |  |  | 593 |  |  | (570) |  |  | — |  |  | 11,705 |
Construction |  | 2,299 |  |  |  |  |  |  | 305 |  |  | — |  |  | — |  |  | 2,604 |
Commercial and Industrial |  | 4,076 |  |  |  |  |  |  | 577 |  |  | (368) |  |  | 2 |  |  | 4,287 |
Credit card |  | 6,758 |  |  |  |  |  |  | 2,294 |  |  | (1,727) |  |  | 4 |  |  | 7,329 |
Other consumer |  | 18 |  |  |  |  |  |  | — |  |  | — |  |  | — |  |  | 18 |
Total |  | $ | 30,832 |  |  |  |  |  |  | $ | 3,748 |  |  | $ | (2,661) |  |  | $ | 6 |  |  | $ | 31,925 |
Nine Months Ended September 30, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential |  | $ | 5,518 |  |  |  |  |  |  | $ | 1,094 |  |  | $ | (630) |  |  | $ | — |  |  | $ | 5,982 |
Commercial |  | 10,316 |  |  |  |  |  |  | 1,959 |  |  | (570) |  |  | — |  |  | 11,705 |
Construction |  | 2,271 |  |  |  |  |  |  | 333 |  |  | — |  |  | — |  |  | 2,604 |
Commercial and Industrial |  | 4,406 |  |  |  |  |  |  | 349 |  |  | (470) |  |  | 2 |  |  | 4,287 |
Credit card |  | 6,087 |  |  |  |  |  |  | 6,151 |  |  | (5,019) |  |  | 110 |  |  | 7,329 |
Other consumer |  | 12 |  |  |  |  |  |  | 6 |  |  | — |  |  | — |  |  | 18 |
Total |  | $ | 28,610 |  |  |  |  |  |  | $ | 9,892 |  |  | $ | (6,689) |  |  | $ | 112 |  |  | $ | 31,925 |
Past due loans, segregated by age and class of loans, as of September 30, 2025 and December 31, 2024 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 1 |  | Nonaccrual Loans
(in thousands) |  |  |  |  |  |  |  |
September 30, 2025 |  |  |  |  |  |  |  |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential |  | $ | 9,584 |  |  | $ | 2,541 |  |  | $ | 7,278 |  |  | $ | 19,403 |  |  | $ | 720,657 |  |  | $ | 740,060 |  |  | $ | 615 |  |  | $ | 6,551 |
Commercial |  | 20,590 |  |  | 401 |  |  | 13,320 |  |  | 34,311 |  |  | 953,208 |  |  | 987,519 |  |  | 23 |  |  | 16,687 |
Construction |  | 307 |  |  | 3,197 |  |  | 9,709 |  |  | 13,213 |  |  | 331,077 |  |  | 344,290 |  |  | 3,196 |  |  | 6,513 |
Commercial and Industrial |  | 2,376 |  |  | 13,345 |  |  | 15,248 |  |  | 30,969 |  |  | 588,179 |  |  | 619,148 |  |  | 361 |  |  | 22,496 |
Credit card |  | 7,436 |  |  | 6,477 |  |  | 1,881 |  |  | 15,794 |  |  | 120,689 |  |  | 136,483 |  |  | 1,881 |  |  | — |
Other consumer |  | — |  |  | — |  |  | — |  |  | — |  |  | 2,010 |  |  | 2,010 |  |  | — |  |  | — |
Total |  | $ | 40,293 |  |  | $ | 25,961 |  |  | $ | 47,436 |  |  | $ | 113,690 |  |  | $ | 2,715,820 |  |  | $ | 2,829,510 |  |  | $ | 6,076 |  |  | $ | 52,247 |
|  | 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, 2024 |  |  |  |  |  |  |  |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential |  | $ | 1,656 |  |  | $ | 4,913 |  |  | $ | 6,644 |  |  | $ | 13,213 |  |  | $ | 675,339 |  |  | $ | 688,552 |  |  | $ | — |  |  | $ | 8,652 |
Commercial |  | 4,957 |  |  | 7,570 |  |  | 7,001 |  |  | 19,528 |  |  | 923,491 |  |  | 943,019 |  |  | 100 |  |  | 14,312 |
Construction |  | 1,000 |  |  | 415 |  |  | 4,309 |  |  | 5,724 |  |  | 315,528 |  |  | 321,252 |  |  | — |  |  | 4,309 |
Commercial and Industrial |  | 10,981 |  |  | 1,245 |  |  | 1,049 |  |  | 13,275 |  |  | 541,275 |  |  | 554,550 |  |  | — |  |  | 2,968 |
Credit card |  | 6,923 |  |  | 6,561 |  |  | 1,544 |  |  | 15,028 |  |  | 112,738 |  |  | 127,766 |  |  | 1,544 |  |  | — |
Other consumer |  | — |  |  | — |  |  | — |  |  | — |  |  | 2,089 |  |  | 2,089 |  |  | — |  |  | — |
Total |  | $ | 25,517 |  |  | $ | 20,704 |  |  | $ | 20,547 |  |  | $ | 66,768 |  |  | $ | 2,570,460 |  |  | $ | 2,637,228 |  |  | $ | 1,644 |  |  | $ | 30,241 |
1 Accruing Loans 90 or More Days Past Due are well-collateralized and in the process of collection. The balance includes a $3.2 million loan that was collected after September 30, 2025 and is now resolved. There were $7.8 million and $7.2 million of loans secured by one-to-four family residential properties in the process of foreclosure as of September 30, 2025 and December 31, 2024, respectively. The following presents the nonaccrual loans as of September 30, 2025 and December 31, 2024:
|  | September 30, 2025 |  |
|  | 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 |  | $ | 6,543 |  |  | $ | 8 |  |  | $ | 6,551 |  |  | $ | 92 |  |  |
Commercial |  | 15,380 |  |  | 1,307 |  |  | 16,687 |  |  | 10 |  |  |
Construction |  | 6,513 |  |  | — |  |  | 6,513 |  |  | 490 |  |  |
Commercial and Industrial |  | 13,859 |  |  | 8,637 |  |  | 22,496 |  |  | 394 |  |  |
Total |  | $ | 42,295 |  |  | $ | 9,952 |  |  | $ | 52,247 |  |  | $ | 986 |  |  |
|  | December 31, 2024 |  |
|  | 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 |  | $ | 8,055 |  |  | $ | 597 |  |  | $ | 8,652 |  |  | $ | 38 |  |  |
Commercial |  | 3,205 |  |  | 11,107 |  |  | 14,312 |  |  | 122 |  |  |
Construction |  | 4,309 |  |  | — |  |  | 4,309 |  |  | 144 |  |  |
Commercial and Industrial |  | 247 |  |  | 2,721 |  |  | 2,968 |  |  | 106 |  |  |
Total |  | $ | 15,816 |  |  | $ | 14,425 |  |  | $ | 30,241 |  |  | $ | 410 |  |  |
The Company has certain loans for which repayment is dependent upon the operation or sale of collateral, as the borrower is experiencing financial difficulty. The underlying collateral can vary based upon the type of loan. The following provides more detail about the types of collateral that secure collateral dependent loans: •Residential real estate loans are primarily secured by owner-occupied primary residences and, to a lesser extent, investor-owned residences. •Commercial real estate loans can be secured by either owner-occupied commercial real estate or non-owner-occupied investment commercial real estate. Typically, owner-occupied commercial real estate loans are secured by office buildings, warehouses, manufacturing facilities and other commercial and industrial properties occupied by operating companies. Non-owner-occupied commercial real estate loans are generally secured by office buildings and complexes, retail facilities, multifamily complexes, land under development and/or industrial properties, as well as other commercial or industrial real estate. •Construction loans are typically secured by owner-occupied commercial real estate or non-owner-occupied investment real estate. Typically, owner-occupied construction loans are secured by office buildings, warehouses, manufacturing facilities, and other commercial and industrial properties that are in process of construction. Non-owner-occupied commercial construction loans are generally secured by office buildings and complexes, multi-family complexes, land under development and/or other commercial and industrial real estate in process of construction. •Commercial and industrial loans are generally secured by equipment, inventory, accounts receivable and/or other commercial property.
Collateral dependent loans amortized cost |  |  |  |
(in thousands) |  | September 30, 2025 |  | December 31, 2024
Real estate: |  |  |  |
Residential |  | $ | 6,657 |  |  | $ | 8,780 |
Commercial |  | 14,862 |  |  | 14,803 |
Construction |  | 5,232 |  |  | 4,301 |
Commercial and Industrial |  | 11,235 |  |  | 6,551 |
Total |  | $ | 37,986 |  |  | $ | 34,435 |
Of the collateral dependent loans as of September 30, 2025, a specific reserve of $8 thousand, $1.3 million and $4.3 million was assessed for residential real estate, commercial real estate and commercial and industrial loans, respectively. Of the collateral dependent loans as of December 31, 2024, a specific reserve of $147 thousand, $4.1 million and $4.8 million was assessed for residential real estate, commercial real estate and commercial and industrial loans. The Company made no loan modifications on loans to borrowers experiencing financial difficulty during the three months ended September 30, 2025. The Company made one loan modification on loans to borrowers experiencing financial difficulty during the nine months ended September 30, 2025 as follows:
Modifications |  |  |  |  |  |
(in thousands) |  | Amortized Cost Basis |  | % of Total Loan Type |  | Financial Effect
Real estate: |  |  |  |  |  |
Commercial and Industrial |  | 44 |  |  | 0.007 | % |  | Extended maturity date of one loan which reduced monthly payment amount for the borrower.
Total |  | $ | 44 |  |  |  |  |
The Company made no loan modifications on loans to borrowers experiencing financial difficulty during the three months ended September 30, 2024. The Company made four loan modifications on loans to borrowers experiencing financial difficulty during the nine months ended September 30, 2024 as follows:
Modifications |  |  |  |  |  |
(in thousands) |  | Amortized Cost Basis |  | % of Total Loan Type |  | Financial Effect
Real estate: |  |  |  |  |  |
Residential |  | $ | 760 |  |  | 0.199 | % |  | Added 1 year to the life of the loan which reduced monthly payment amount for the borrower; Reduced contractual interest rate from 8.375% to 6.375% on one loan.
Residential - Home Equity |  | 91 |  |  | 0.164 | % |  | Added 22 years to the life of the loan which reduced monthly payment amount for the borrower; Reduced contractual interest rate from 10.490% to 6.375% on one loan.
Commercial and Industrial |  | 112 |  |  | 0.044 | % |  | Provided 6 months payment deferral to borrower through the Bank’s standard deferral program on one loan; Reduced contractual interest rate from 11.250% to 6.000% on one loan.
Total |  | $ | 963 |  |  |  |  |
The following table presents the payment status of loans that have been modified in the last twelve months:
|  | September 30, 2025
|  |  |  | Past Due |  | Past Due |  |  |  |
(in thousands) |  | Current |  | 30-89 Days |  | 90 Days or More |  | Nonaccrual |  | Total
Real estate: |  |  |  |  |  |  |  |  |  |
Residential |  | $ | 44 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 44 |
Residential - Home Equity |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Commercial |  | 524 |  |  | — |  |  | — |  |  | 890 |  |  | 1,414 |
Commercial and Industrial |  | 2,504 |  |  | — |  |  | — |  |  | — |  |  | 2,504 |
|  | $ | 3,072 |  |  | $ | — |  |  | $ | — |  |  | $ | 890 |  |  | $ | 3,962 |
Credit quality indicators As part of the ongoing monitoring of the credit quality of the Company’s loan portfolio, management tracks certain credit quality indicators including trends related to the risk grade of loans, the level of classified loans, net charge-offs, nonperforming loans, and general economic conditions in the Company’s market. From a credit risk standpoint, the Company utilizes a risk grading matrix to assign a risk grade to each of its loans. The classifications of loans reflect a judgment about the risk of expected credit loss associated with each loan. Credit quality indicators are reviewed and adjusted regularly to account for the degree of risk and expected credit loss that the Company believes to be appropriate for each financial asset. A description of the general risk ratings are described as follows: Pass Loans characterized as pass includes loans graded exceptional, very good, good, satisfactory and pass/watch. The Company believes that there is a low likelihood of credit deterioration related to those loans that are considered pass. Special mention A special mention loan has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the Company’s credit position at some future date. Special mention loans are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification. Borrowers may exhibit poor liquidity and leverage positions resulting from generally negative cash flow or negative trends in earnings. Access to alternative financing may be limited to finance companies for business borrowers and may be unavailable for commercial real estate borrowers. Substandard A substandard loan is inadequately protected by the current financial condition and paying capacity of the obligor or of the collateral pledged, if any. Substandard loans have a well-defined weakness, or weaknesses, that jeopardize 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. Borrowers may exhibit recent or unexpected unprofitable operations, an inadequate debt service coverage ratio, or marginal liquidity and capitalization. These loans require more intense supervision by Company management. Doubtful A doubtful loan has all the weaknesses associated with a substandard loan 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. Ungraded Ungraded loans represent credit card loans not included in the individual credit grading process due to the borrower type. The credit quality indicator for credit card loans is based on the delinquency status of the borrower as of the date presented. 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:
September 30, 2025 |  | Term Loans by Origination Year |  |  |  |
(in thousands) |  | 2025 |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | Prior |  | Revolving |  | Total
Residential – Real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 163,768 |  |  | $ | 117,167 |  |  | $ | 104,384 |  |  | $ | 110,192 |  |  | $ | 67,743 |  |  | $ | 161,696 |  |  | $ | — |  |  | $ | 724,950 |
Special Mention |  | — |  |  | — |  |  | 1,991 |  |  | 2,030 |  |  | 1,232 |  |  | 3,567 |  |  | — |  |  | 8,820 |
Substandard |  | 580 |  |  | 287 |  |  | — |  |  | 33 |  |  | 322 |  |  | 5,068 |  |  | — |  |  | 6,290 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total |  | 164,348 |  |  | 117,454 |  |  | 106,375 |  |  | 112,255 |  |  | 69,297 |  |  | 170,331 |  |  | — |  |  | 740,060 |
Commercial – Real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 126,825 |  |  | 222,560 |  |  | 57,351 |  |  | 128,644 |  |  | 130,560 |  |  | 249,602 |  |  | — |  |  | 915,542 |
Special Mention |  | — |  |  | — |  |  | 2,526 |  |  | 39,436 |  |  | 5,718 |  |  | 6,581 |  |  | — |  |  | 54,261 |
Substandard |  | — |  |  | — |  |  | 5,967 |  |  | 5,989 |  |  | 1,611 |  |  | 4,149 |  |  | — |  |  | 17,716 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total |  | 126,825 |  |  | 222,560 |  |  | 65,844 |  |  | 174,069 |  |  | 137,889 |  |  | 260,332 |  |  | — |  |  | 987,519 |
Construction – Real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 65,799 |  |  | 110,579 |  |  | 84,932 |  |  | 44,504 |  |  | 11,615 |  |  | 17,680 |  |  | — |  |  | 335,109 |
Special Mention |  | — |  |  | — |  |  | 1,000 |  |  | — |  |  | 1,668 |  |  | — |  |  | — |  |  | 2,668 |
Substandard |  | — |  |  | — |  |  | 1,976 |  |  | — |  |  | 593 |  |  | 3,944 |  |  | — |  |  | 6,513 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total |  | 65,799 |  |  | 110,579 |  |  | 87,908 |  |  | 44,504 |  |  | 13,876 |  |  | 21,624 |  |  | — |  |  | 344,290 |
Commercial and Industrial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 133,635 |  |  | 149,007 |  |  | 98,043 |  |  | 94,645 |  |  | 35,890 |  |  | 71,822 |  |  | — |  |  | 583,042 |
Special Mention |  | — |  |  | 202 |  |  | 101 |  |  | 801 |  |  | 129 |  |  | 5,775 |  |  | — |  |  | 7,008 |
Substandard |  | 4,213 |  |  | 326 |  |  | 16,688 |  |  | 1,737 |  |  | 1,525 |  |  | 4,609 |  |  | — |  |  | 29,098 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total |  | 137,848 |  |  | 149,535 |  |  | 114,832 |  |  | 97,183 |  |  | 37,544 |  |  | 82,206 |  |  | — |  |  | 619,148 |
Other consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 598 |  |  | 1,176 |  |  | — |  |  | 52 |  |  | 54 |  |  | 130 |  |  | — |  |  | 2,010 |
Special Mention |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Substandard |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total |  | 598 |  |  | 1,176 |  |  | — |  |  | 52 |  |  | 54 |  |  | 130 |  |  | — |  |  | 2,010 |
Credit card |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ungraded |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 136,483 |  |  | 136,483 |
Portfolio loans receivable, gross |  | $ | 495,418 |  |  | $ | 601,304 |  |  | $ | 374,959 |  |  | $ | 428,063 |  |  | $ | 258,660 |  |  | $ | 534,623 |  |  | $ | 136,483 |  |  | $ | 2,829,510 |
September 30, 2025 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(in thousands) |  | 2025 |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | Prior |  | Revolving |  | Total
Gross Charge-Offs |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential real estate |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Commercial real estate |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,695 |  |  | — |  |  | 1,695 |
Construction |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 264 |  |  | — |  |  | 264 |
Commercial and Industrial |  | — |  |  | 15 |  |  | 713 |  |  | 252 |  |  | 8 |  |  | 609 |  |  | — |  |  | 1,597 |
Credit card |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 6,522 |  |  | 6,522 |
Total |  | $ | — |  |  | $ | 15 |  |  | $ | 713 |  |  | $ | 252 |  |  | $ | 8 |  |  | $ | 2,568 |  |  | $ | 6,522 |  |  | $ | 10,078 |
December 31, 2024 |  | Term Loans by Origination Year |  |  |  |
(in thousands) |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | Prior |  | Revolving |  | Total
Residential – Real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 155,867 |  |  | $ | 129,639 |  |  | $ | 122,203 |  |  | $ | 76,906 |  |  | $ | 69,647 |  |  | $ | 117,272 |  |  | $ | — |  |  | $ | 671,534 |
Special Mention |  | — |  |  | — |  |  | 2,065 |  |  | 1,242 |  |  | 3,604 |  |  | — |  |  | — |  |  | 6,911 |
Substandard |  | — |  |  | — |  |  | — |  |  | 3,422 |  |  | 189 |  |  | 6,496 |  |  | — |  |  | 10,107 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total |  | 155,867 |  |  | 129,639 |  |  | 124,268 |  |  | 81,570 |  |  | 73,440 |  |  | 123,768 |  |  | — |  |  | 688,552 |
Commercial – Real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 235,929 |  |  | 61,372 |  |  | 170,611 |  |  | 146,642 |  |  | 92,038 |  |  | 207,631 |  |  | — |  |  | 914,223 |
Special Mention |  | — |  |  | 2,300 |  |  | 10,747 |  |  | 5,052 |  |  | — |  |  | 788 |  |  | — |  |  | 18,887 |
Substandard |  | — |  |  | — |  |  | 7,558 |  |  | — |  |  | 320 |  |  | 2,031 |  |  | — |  |  | 9,909 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total |  | 235,929 |  |  | 63,672 |  |  | 188,916 |  |  | 151,694 |  |  | 92,358 |  |  | 210,450 |  |  | — |  |  | 943,019 |
Construction – Real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 98,942 |  |  | 129,202 |  |  | 46,532 |  |  | 20,634 |  |  | 15,458 |  |  | 6,175 |  |  | — |  |  | 316,943 |
Special Mention |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Substandard |  | — |  |  | — |  |  | — |  |  | — |  |  | 2,252 |  |  | 2,057 |  |  | — |  |  | 4,309 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total |  | 98,942 |  |  | 129,202 |  |  | 46,532 |  |  | 20,634 |  |  | 17,710 |  |  | 8,232 |  |  | — |  |  | 321,252 |
Commercial and Industrial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 129,043 |  |  | 130,647 |  |  | 117,346 |  |  | 42,747 |  |  | 21,356 |  |  | 107,953 |  |  | — |  |  | 549,092 |
Special Mention |  | 232 |  |  | — |  |  | 489 |  |  | — |  |  | — |  |  | 270 |  |  | — |  |  | 991 |
Substandard |  | — |  |  | 209 |  |  | 712 |  |  | 205 |  |  | 3,239 |  |  | 102 |  |  | — |  |  | 4,467 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total |  | 129,275 |  |  | 130,856 |  |  | 118,547 |  |  | 42,952 |  |  | 24,595 |  |  | 108,325 |  |  | — |  |  | 554,550 |
Other consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 1,226 |  |  | 278 |  |  | 73 |  |  | 95 |  |  | 76 |  |  | 341 |  |  | — |  |  | 2,089 |
Special Mention |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Substandard |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total |  | 1,226 |  |  | 278 |  |  | 73 |  |  | 95 |  |  | 76 |  |  | 341 |  |  | — |  |  | 2,089 |
Credit card |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ungraded |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 127,766 |  |  | 127,766 |
Portfolio loans receivable, gross |  | $ | 621,239 |  |  | $ | 453,647 |  |  | $ | 478,336 |  |  | $ | 296,945 |  |  | $ | 208,179 |  |  | $ | 451,116 |  |  | $ | 127,766 |  |  | $ | 2,637,228 |
December 31, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(in thousands) |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | Prior |  | Revolving |  | Total
Gross Charge-Offs |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential real estate |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 907 |  |  | $ | — |  |  | $ | 907 |
Commercial real estate |  | — |  |  | — |  |  | 570 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 570 |
Commercial and Industrial |  | 84 |  |  | 80 |  |  | 306 |  |  | — |  |  | — |  |  | 136 |  |  | — |  |  | 606 |
Credit card |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 7,145 |  |  | 7,145 |
Total |  | $ | 84 |  |  | $ | 80 |  |  | $ | 876 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,043 |  |  | $ | 7,145 |  |  | $ | 9,228 |
Outstanding loan commitments were as follows:
(in thousands) |  | September 30, 2025 |  | December 31, 2024
Unused lines of credit |  |  |  |
Real Estate: |  |  |  |
Residential |  | $ | 21,655 |  |  | $ | 20,996 |
Residential - Home Equity |  | 42,960 |  |  | 46,900 |
Commercial |  | 21,812 |  |  | 44,201 |
Construction |  | 90,818 |  |  | 85,984 |
Commercial and Industrial |  | 68,813 |  |  | 79,961 |
Credit card(1) |  | 137,816 |  |  | 124,732 |
Other consumer |  | 229 |  |  | 255 |
Total |  | $ | 384,103 |  |  | $ | 403,029 |
Letters of credit |  | $ | 1,633 |  |  | $ | 3,122 |
_______________ (1)Outstanding loan commitments in the credit card portfolio include $98.4 million and $97.2 million in secured and partially secured balances as of September 30, 2025 and December 31, 2024, respectively. Lines of credit are agreements to lend to a customer as long as there is no violation of any condition of the contract. Lines of credit generally have variable interest rates. Such lines do not represent future cash requirements because it is unlikely that all customers will, at any given time, draw upon their lines in full. Loan commitments generally have variable interest rates, fixed expiration dates, and may require payment of a fee. The Company's maximum exposure to credit loss in the event of nonperformance by the customer is the contractual amount of the credit commitment. Loan commitments and lines of credit are generally made on the same terms, including with regard to collateral, as outstanding loans. Management is not aware of any accounting loss to be incurred by funding these loan commitments. The Company maintains an estimated reserve for unfunded commitments and certain off-balance sheet items such as unfunded lines of credit, which is reflected in other liabilities, with increases or decreases in the reserve being charged to or released from operating expense. Activity for this account is as follows for the periods presented:
|  | Three months ended |  | Nine months ended
(in thousands) |  | September 30, 2025 |  | September 30, 2024 |  | September 30, 2025 |  | September 30, 2024
Balance at beginning of period |  | $ | 1,191 |  |  | $ | 1,052 |  |  | $ | 1,191 |  |  | $ | 806 |
Provision for credit losses on unfunded commitments |  | 217 |  |  | 17 |  |  | 217 |  |  | 263 |
Balance at end of period |  | $ | 1,408 |  |  | $ | 1,069 |  |  | $ | 1,408 |  |  | $ | 1,069 |
The Company makes representations and warranties that loans sold to investors meet the investors’ program guidelines and that the information provided by the borrowers is accurate and complete. In the event of a default on a loan sold, the investor may have the right to make a claim for losses due to document deficiencies, program non-compliance, early payment default, and fraud or borrower misrepresentations. The Company maintains a reserve for potential losses on mortgage loans sold, which is reflected in other liabilities, with changes being charged to or released from operating expense. Activity in this reserve is as follows for the periods presented:
|  | Three months ended |  | Nine months ended
(in thousands) |  | September 30, 2025 |  | September 30, 2024 |  | September 30, 2025 |  | September 30, 2024
Balance at beginning of period |  | $ | 2,294 |  |  | $ | 912 |  |  | $ | 2,260 |  |  | $ | 985 |
Provision for (release of) mortgage loan put-back reserve |  | 19 |  |  | 20 |  |  | 53 |  |  | (53) |
Balance at end of period |  | $ | 2,313 |  |  | $ | 932 |  |  | $ | 2,313 |  |  | $ | 932 |

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