XML 64 R44.htm IDEA: XBRL DOCUMENT

Loans (Tables)

12 Months Ended

Dec. 31, 2024

Loans

Summary of components of loans

The following table presents the components of the loan portfolio at December 31, 2024 and 2023:


		December 31,			December 31,
(dollars in thousands)		2024			2023
Commercial		$	497,662		$	464,061
Leases			44,291			—
Construction and Land Development			97,255			232,804
1-4 Family Construction			41,961			65,087
Real Estate Mortgage:
1-4 Family Mortgage			474,383			402,396
Multifamily			1,425,610			1,388,541
CRE Owner Occupied			191,248			175,783
CRE Nonowner Occupied			1,083,108			987,306
Total Real Estate Mortgage Loans			3,174,349			2,954,026
Consumer and Other			12,996			8,304
Total Loans, Gross			3,868,514			3,724,282
Allowance for Credit Losses			(52,277)			(50,494)
Net Deferred Loan Fees			(6,801)			(6,573)
Total Loans, Net		$	3,809,436		$	3,667,215

Summary of aging in past due loans and nonaccrual status, with and without an ACL, by loan segment

The following tables present the aging in past due loans and nonaccrual status, with and without an ACL, by loan segment as of December 31, 2024 and 2023:


		Accruing Interest
					30-89 Days			90 Days or			Nonaccrual			Nonaccrual
(dollars in thousands)		Current			Past Due			More Past Due			with ACL			without ACL			Total
December 31, 2024
Commercial		$	497,432		$	59		$	—		$	171		$	—		$	497,662
Leases			44,257			—			—			34			—			44,291
Construction and Land Development			97,197			—			—			—			58			97,255
1-4 Family Construction			41,961			—			—			—			—			41,961
Real Estate Mortgage:
1-4 Family Mortgage			474,185			178			—			—			20			474,383
Multifamily			1,425,610			—			—			—			—			1,425,610
CRE Owner Occupied			190,197			1,051			—			—			—			191,248
CRE Nonowner Occupied			1,083,108			—			—			—			—			1,083,108
Consumer and Other			12,975			3			—			18			—			12,996
Totals		$	3,866,922		$	1,291		$	—		$	223		$	78		$	3,868,514


		Accruing Interest
					30-89 Days			90 Days or			Nonaccrual			Nonaccrual
(dollars in thousands)		Current			Past Due			More Past Due			with ACL			without ACL			Total
December 31, 2023
Commercial		$	463,966		$	—		$	—		$	—		$	95		$	464,061
Construction and Land Development			232,724			—			—			—			80			232,804
1-4 Family Construction			64,838			—			—			—			249			65,087
Real Estate Mortgage:
1-4 Family Mortgage			402,396			—			—			—			—			402,396
Multifamily			1,373,431			15,110			—			—			—			1,388,541
CRE Owner Occupied			175,289			—			—			—			494			175,783
CRE Nonowner Occupied			987,306			—			—			—			—			987,306
Consumer and Other			8,303			—			—			—			1			8,304
Totals		$	3,708,253		$	15,110		$	—		$	—		$	919		$	3,724,282

Summary of loan balances classified by credit quality indicators by year of origination

The following tables present loan balances classified by credit quality indicators by year of origination as of December 31, 2024 and 2023:


		December 31, 2024
(dollars in thousands)		2024			2023			2022			2021			2020			Prior			Revolving			Total
Commercial
Pass	$	135,665		$	45,089		$	67,579		$	23,353		$	13,349		$	19,794		$	178,293		$	483,122
Watch/Special Mention		—			—			76			96			29			—			1,716			1,917
Substandard		110			44			10,491			—			65			—			1,913			12,623
Total Commercial		135,775			45,133			78,146			23,449			13,443			19,794			181,922			497,662
Current Period Gross Write-offs		—			—			—			—			—			—			—			—

Leases
Pass		15,128			12,684			9,736			4,057			1,504			1,148			—			44,257
Substandard		—			—			34			—			—			—			—			34
Total Leases		15,128			12,684			9,770			4,057			1,504			1,148			—			44,291
Current Period Gross Write-offs		—			—			—			—			11			—			—			11

Construction and Land Development
Pass		74,967			6,027			6,791			585			—			—			8,827			97,197
Substandard		58			—			—			—			—			—			—			58
Total Construction and Land Development		75,025			6,027			6,791			585			—			—			8,827			97,255
Current Period Gross Write-offs		—			—			—			—			—			—			—			—

1-4 Family Construction
Pass		29,378			488			1,164			363			—			—			10,568			41,961
Total 1-4 Family Construction		29,378			488			1,164			363			—			—			10,568			41,961
Current Period Gross Write-offs		—			—			—			—			—			—			—			—

Real Estate Mortgage:
1-4 Family Mortgage
Pass		89,561			58,054			102,627			77,293			55,936			18,289			71,097			472,857
Watch/Special Mention		298			196			—			—			324			—			—			818
Substandard		20			45			—			—			—			643			—			708
Total 1-4 Family Mortgage		89,879			58,295			102,627			77,293			56,260			18,932			71,097			474,383
Current Period Gross Write-offs		—			—			—			—			—			—			—			—

Multifamily
Pass		219,162			133,916			486,854			336,859			161,626			57,679			6,624			1,402,720
Watch/Special Mention		9,953			2,245			10,692			—			—			—			—			22,890
Total Multifamily		229,115			136,161			497,546			336,859			161,626			57,679			6,624			1,425,610
Current Period Gross Write-offs		—			—			—			—			—			—			—			—

CRE Owner Occupied
Pass		22,761			31,402			62,522			34,228			17,801			15,355			2,121			186,190
Watch/Special Mention		—			—			—			1,759			1,739			—			593			4,091
Substandard		—			967			—			—			—			—			—			967
Total CRE Owner Occupied		22,761			32,369			62,522			35,987			19,540			15,355			2,714			191,248
Current Period Gross Write-offs		—			—			—			—			—			—			—			—

CRE Nonowner Occupied
Pass		356,582			113,973			261,827			148,866			73,300			97,350			6,962			1,058,860
Watch/Special Mention		9,622			3,659			—			2,690			—			894			—			16,865
Substandard		7,261			122			—			—			—			—			—			7,383
Total CRE Nonowner Occupied		373,465			117,754			261,827			151,556			73,300			98,244			6,962			1,083,108
Current Period Gross Write-offs		1,236			—			—			—			—			—			—			1,236

Total Real Estate Mortgage Loans		715,220			344,579			924,522			601,695			310,726			190,210			87,397			3,174,349

Consumer and Other
Pass		921			3,061			498			157			1,301			5			7,035			12,978
Substandard		—			18			—			—			—			—			—			18
Total Consumer and Other		921			3,079			498			157			1,301			5			7,035			12,996
Current Period Gross Write-offs		17			—			—			—			—			—			2			19

Total Period Gross Write-offs		1,253			—			—			—			11			—			2			1,266
Total Loans	$	971,447		$	411,990		$	1,020,891		$	630,306		$	326,974		$	211,157		$	295,749		$	3,868,514


		December 31, 2023
(dollars in thousands)		2023			2022			2021			2020			2019			Prior			Revolving			Total
Commercial
Pass	$	93,299		$	121,274		$	37,056		$	19,297		$	18,594		$	4,507		$	149,836		$	443,863
Watch/Special Mention		1,700			318			34			—			—			—			2,003			4,055
Substandard		3			11,299			—			—			—			50			4,791			16,143
Total Commercial		95,002			132,891			37,090			19,297			18,594			4,557			156,630			464,061
Current Period Gross Write-offs		72			96			12			—			—			—			—			180

Construction and Land Development
Pass		87,402			99,133			34,122			46			—			—			12,021			232,724
Substandard		—			80			—			—			—			—			—			80
Total Construction and Land Development		87,402			99,213			34,122			46			—			—			12,021			232,804
Current Period Gross Write-offs		—			—			—			—			—			—			—			—

1-4 Family Construction
Pass		35,172			16,156			941			355			—			—			12,214			64,838
Substandard		249			—			—			—			—			—			—			249
Total 1-4 Family Construction		35,421			16,156			941			355			—			—			12,214			65,087
Current Period Gross Write-offs		—			—			—			—			—			—			—			—

Real Estate Mortgage:
1-4 Family Mortgage
Pass		74,602			106,085			83,525			52,813			18,789			3,403			62,490			401,707
Substandard		—			—			—			—			—			659			30			689
Total 1-4 Family Mortgage		74,602			106,085			83,525			52,813			18,789			4,062			62,520			402,396
Current Period Gross Write-offs		—			—			—			—			—			—			—			—

Multifamily
Pass		192,078			456,179			444,162			196,784			41,998			45,847			8,577			1,385,625
Watch/Special Mention		2,916			—			—			—			—			—			—			2,916
Total Multifamily		194,994			456,179			444,162			196,784			41,998			45,847			8,577			1,388,541
Current Period Gross Write-offs		—			—			—			—			—			—			—			—

CRE Owner Occupied
Pass		36,255			61,724			40,748			20,610			4,903			8,312			1,672			174,224
Substandard		194			—			494			—			—			871			—			1,559
Total CRE Owner Occupied		36,449			61,724			41,242			20,610			4,903			9,183			1,672			175,783
Current Period Gross Write-offs		—			—			—			—			—			—			—			—

CRE Nonowner Occupied
Pass		164,226			305,749			253,683			77,618			78,288			66,569			4,521			950,654
Watch/Special Mention		16,301			—			3,213			—			—			—			—			19,514
Substandard		15,183			1,955			—			—			—			—			—			17,138
Total CRE Nonowner Occupied		195,710			307,704			256,896			77,618			78,288			66,569			4,521			987,306
Current Period Gross Write-offs		—			—			—			—			—			—			—			—

Total Real Estate Mortgage Loans		501,755			931,692			825,825			347,825			143,978			125,661			77,290			2,954,026

Consumer and Other
Pass		2,908			256			9			1,460			6			—			3,665			8,304
Total Consumer and Other		2,908			256			9			1,460			6			—			3,665			8,304
Current Period Gross Write-offs		42			—			—			—			—			—			2			44

Total Period Gross Write-offs		114			96			12			—			—			—			2			224
Total Loans	$	722,488		$	1,180,208		$	897,987		$	368,983		$	162,578		$	130,218		$	261,820		$	3,724,282

Summary of the activity in the allowance for loan losses by segment

The Company recorded a $2.9 million and $2.1 million provision for credit losses on loans and leases for the year ended December 31, 2024 and 2023, respectively, compared to a $7.7 million provision for loan losses for the year ended December 31, 2022. The Company also recorded a $114,000 PCD allowance for loans acquired in the FMCB transaction. The Company utilized the incurred loss method for the year ended December 31, 2022 and adopted CECL on January 1, 2023. The following table presents the activity in the allowance for credit losses, by segment, for the year ended December 31, 2024 and 2023:


								Construction												CRE			CRE
								and Land			1--4 Family			1--4 Family						Owner			Non-owner			Consumer
(dollars in thousands)		Commercial			Leases			Development			Construction			Mortgage			Multifamily			Occupied			Occupied			and Other			Unallocated			Total
Allowance for Credit Losses for Loans and Leases:
Balance at January 1, 2023		$	6,501		$	—		$	3,911		$	845		$	4,325		$	17,459		$	1,965		$	12,576		$	151		$	263		$	47,996
Impact of Adopting CECL			(1,158)			—			(1,070)			(235)			(1,778)			3,318			(943)			2,869			(90)			(263)			650
Provision for Credit Losses for Loans and Leases			225			—			(685)			(52)			99			1,440			162			780			81			—			2,050
Loans Charged-off			(180)			—			—			—			—			—			—			—			(44)			—			(224)
Recoveries of Loans			10			—			—			—			5			—			—			—			7			—			22
Balance at December 31, 2023			5,398			—			2,156			558			2,651			22,217			1,184			16,225			105			—			50,494
PCD Allowance			90			20			—			—			—			—			—			—			4			—			114
Provision for Credit Losses for Loans and Leases⁽¹⁾			120			359			(1,290)			(227)			141			903			106			2,746			42			—			2,900
Loans Charged-off			—			(11)			—			—			—			—			—			(1,236)			(19)			—			(1,266)
Recoveries of Loans			22			—			—			—			3			—			—			—			10			—			35
Balance at December 31, 2024		$	5,630		$	368		$	866		$	331		$	2,795		$	23,120		$	1,290		$	17,735		$	142		$	—		$	52,277

(1) Includes an initial provision for credit losses for non-PCD loans acquired in the FMCB transaction of $950,000 for the year ended December 31, 2024.

The following table presents the activity in the allowance for loan losses by portfolio segment for the year ended December 31, 2022 utilizing the incurred loss method.


					Construction												CRE			CRE
					and Land			1--4 Family			1--4 Family						Owner			Non-owner			Consumer
(dollars in thousands)		Commercial			Development			Construction			Mortgage			Multifamily			Occupied			Occupied			and Other			Unallocated			Total
Allowance for Loan Losses:
Balance at January 1, 2022		$	6,269		$	3,139		$	618		$	3,757		$	12,610		$	1,495		$	11,335		$	147		$	650		$	40,020
Provision for Loan Losses			235			772			227			280			4,849			470			1,241			13			(387)			7,700
Loans Charged-off			(13)			—			—			—			—			—			—			(24)			—			(37)
Recoveries of Loans			10			—			—			288			—			—			—			15			—			313
Balance at December 31, 2022		$	6,501		$	3,911		$	845		$	4,325		$	17,459		$	1,965		$	12,576		$	151		$	263		$	47,996

The following tables present the balance in the allowance for credit losses and the recorded investment in loans, by segment, based on impairment method as of December 31, 2024 and 2023:


								Construction												CRE			CRE
								and Land			1--4 Family			1--4 Family						Owner			Non-owner			Consumer
(dollars in thousands)		Commercial			Leases			Development			Construction			Mortgage			Multifamily			Occupied			Occupied			and Other			Total
ACL at December 31, 2024
Individually Evaluated for Impairment		$	133		$	6		$	—		$	—		$	—		$	—		$	—		$	—		$	5		$	144
Collectively Evaluated for Impairment			5,497			362			866			331			2,795			23,120			1,290			17,735			137			52,133
Totals		$	5,630		$	368		$	866		$	331		$	2,795		$	23,120		$	1,290		$	17,735		$	142		$	52,277

ACL at December 31, 2023
Individually Evaluated for Impairment		$	8		$	—		$	—		$	—		$	—		$	—		$	—		$	95		$	—		$	103
Collectively Evaluated for Impairment			5,390			—			2,156			558			2,651			22,217			1,184			16,130			105			50,391
Totals		$	5,398		$	—		$	2,156		$	558		$	2,651		$	22,217		$	1,184		$	16,225		$	105		$	50,494


								Construction												CRE			CRE
								and Land			1--4 Family			1--4 Family						Owner			Non-owner			Consumer
(dollars in thousands)		Commercial			Leases			Development			Construction			Mortgage			Multifamily			Occupied			Occupied			and Other			Total
Loans at December 31, 2024
Individually Evaluated for Impairment		$	14,045		$	34		$	58		$	—		$	708		$	—		$	1,558		$	8,278		$	18		$	24,699
Collectively Evaluated for Impairment			483,617			44,257			97,197			41,961			473,675			1,425,610			189,690			1,074,830			12,978			3,843,815
Totals		$	497,662		$	44,291		$	97,255		$	41,961		$	474,383		$	1,425,610		$	191,248		$	1,083,108		$	12,996		$	3,868,514

Loans at December 31, 2023
Individually Evaluated for Impairment		$	16,143		$	—		$	80		$	249		$	689		$	—		$	1,559		$	17,138		$	—		$	35,858
Collectively Evaluated for Impairment			447,918			—			232,724			64,838			401,707			1,388,541			174,224			970,168			8,304			3,688,424
Totals		$	464,061		$	—		$	232,804		$	65,087		$	402,396		$	1,388,541		$	175,783		$	987,306		$	8,304		$	3,724,282

Summary of amortized cost basis of collateral dependent loans, by the primary collateral type, which are individually evaluated to determine expected credit losses, and the related ACL allocated

The following tables present the amortized cost basis of collateral dependent loans by the primary collateral type, which are individually evaluated to determine expected credit losses, and the related ACL allocated to these loans as of December 31, 2024 and 2023:


		Primary Type of Collateral
					Business									ACL
(dollars in thousands)		Real Estate			Assets			Other			Total			Allocation
December 31, 2024
Commercial		$	—		$	3,688		$	10,357		$	14,045		$	133
Leases			—			—			34			34			6
Construction and Land Development			58			—			—			58			—
Real Estate Mortgage:
1-4 Family Mortgage			708			—			—			708			—
CRE Owner Occupied			1,558			—			—			1,558			—
CRE Nonowner Occupied			8,278			—			—			8,278			—
Consumer and Other			—			—			18			18			5
Totals		$	10,602		$	3,688		$	10,409		$	24,699		$	144


		Primary Type of Collateral
					Business									ACL
(dollars in thousands)		Real Estate			Assets			Other			Total			Allocation
December 31, 2023
Commercial		$	—		$	5,782		$	10,361		$	16,143		$	8
Construction and Land Development			80			—			—			80			—
1-4 Family Construction			249			—			—			249			—
Real Estate Mortgage:
1-4 Family Mortgage			689			—			—			689			—
CRE Owner Occupied			1,559			—			—			1,559			—
CRE Nonowner Occupied			17,138			—			—			17,138			95
Totals		$	19,715		$	5,782		$	10,361		$	35,858		$	103