XML 39 R28.htm IDEA: XBRL DOCUMENT

Loans and Allowance for Credit Losses (Tables)

3 Months Ended

Mar. 31, 2025

Loans and Allowance for Credit Losses

Summary of components of loans

The following table presents the components of the loan portfolio at March 31, 2025 and December 31, 2024:


		March 31,			December 31,
(dollars in thousands)		2025			2024
Commercial		$	528,801		$	497,662
Leases			43,958			44,291
Construction and Land Development			128,073			97,255
1-4 Family Construction			39,438			41,961
Real Estate Mortgage:
1-4 Family Mortgage			479,461			474,383
Multifamily			1,534,747			1,425,610
CRE Owner Occupied			196,080			191,248
CRE Nonowner Occupied			1,055,157			1,083,108
Total Real Estate Mortgage Loans			3,265,445			3,174,349
Consumer and Other			14,361			12,996
Total Loans, Gross			4,020,076			3,868,514
Allowance for Credit Losses			(53,766)			(52,277)
Net Deferred Loan Fees			(7,218)			(6,801)
Total Loans, Net		$	3,959,092		$	3,809,436

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 loans on nonaccrual status, with and without an ACL by loan segment, as of March 31, 2025 and December 31, 2024:


		Accruing Interest
					30-89 Days			90 Days or			Nonaccrual			Nonaccrual
(dollars in thousands)		Current			Past Due			More Past Due			with ACL			without ACL			Total
March 31, 2025
Commercial		$	528,440		$	193		$	—		$	168		$	—		$	528,801
Leases			43,924			—			—			34			—			43,958
Construction and Land Development			128,021			—			—			—			52			128,073
1-4 Family Construction			39,438			—			—			—			—			39,438
Real Estate Mortgage:
1-4 Family Mortgage			478,833			273			—			—			355			479,461
Multifamily			1,533,715			—			—			—			1,032			1,534,747
CRE Owner Occupied			196,080			—			—			—			—			196,080
CRE Nonowner Occupied			1,046,508			—			—			8,649			—			1,055,157
Consumer and Other			14,361			—			—			—			—			14,361
Totals		$	4,009,320		$	466		$	—		$	8,851		$	1,439		$	4,020,076


		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

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 March 31, 2025 and December 31, 2024:


		March 31, 2025
(dollars in thousands)		2025			2024			2023			2022			2021			Prior			Revolving			Total
Commercial
Pass	$	48,650		$	114,980		$	41,357		$	64,100		$	19,921		$	31,096		$	193,969		$	514,073
Watch/Special Mention		97			—			—			—			80			21			1,804			2,002
Substandard		111			107			44			10,523			133			65			1,743			12,726
Total Commercial		48,858			115,087			41,401			74,623			20,134			31,182			197,516			528,801
Current Period Gross Write-offs		—			—			—			—			—			—			—			—

Leases
Pass		3,954			14,034			11,474			8,898			3,395			2,169			—			43,924
Substandard		—			—			—			34			—			—			—			34
Total Leases		3,954			14,034			11,474			8,932			3,395			2,169			—			43,958
Current Period Gross Write-offs		—			—			—			—			—			—			—			—

Construction and Land Development
Pass		37,217			70,340			1,945			7,145			478			—			10,896			128,021
Substandard		—			52			—			—			—			—			—			52
Total Construction and Land Development		37,217			70,392			1,945			7,145			478			—			10,896			128,073
Current Period Gross Write-offs		—			—			—			—			—			—			—			—

1-4 Family Construction
Pass		4,122			22,644			231			1,003			189			—			11,249			39,438
Total 1-4 Family Construction		4,122			22,644			231			1,003			189			—			11,249			39,438
Current Period Gross Write-offs		—			—			—			—			—			—			—			—

Real Estate Mortgage:
1-4 Family Mortgage
Pass		25,351			83,360			57,515			97,297			74,967			70,613			68,506			477,609
Watch/Special Mention		—			297			195			—			—			321			—			813
Substandard		—			34			44			—			171			640			150			1,039
Total 1-4 Family Mortgage		25,351			83,691			57,754			97,297			75,138			71,574			68,656			479,461
Current Period Gross Write-offs		—			—			—			—			—			—			—			—

Multifamily
Pass		150,891			213,519			131,257			479,989			327,493			198,520			9,270			1,510,939
Watch/Special Mention		—			9,905			2,236			10,634			—			—			—			22,775
Substandard		—			—			430			603			—			—			—			1,033
Total Multifamily		150,891			223,424			133,923			491,226			327,493			198,520			9,270			1,534,747
Current Period Gross Write-offs		—			—			—			—			—			—			—			—

CRE Owner Occupied
Pass		8,294			24,141			31,058			62,219			32,176			30,596			2,004			190,488
Watch/Special Mention		—			571			—			—			1,748			1,727			592			4,638
Substandard		154			—			800			—			—			—			—			954
Total CRE Owner Occupied		8,448			24,712			31,858			62,219			33,924			32,323			2,596			196,080
Current Period Gross Write-offs		—			—			—			—			—			—			—			—

CRE Nonowner Occupied
Pass		54,117			331,705			99,742			244,094			135,102			158,916			7,614			1,031,290
Watch/Special Mention		—			914			3,646			—			2,666			892			—			8,118
Substandard		10,904			4,845			—			—			—			—			—			15,749
Total CRE Nonowner Occupied		65,021			337,464			103,388			244,094			137,768			159,808			7,614			1,055,157
Current Period Gross Write-offs		—			—			—			—			—			—			—			—

Total Real Estate Mortgage Loans		249,711			669,291			326,923			894,836			574,323			462,225			88,136			3,265,445

Consumer and Other
Pass		3,166			343			508			447			106			1,198			8,593			14,361
Total Consumer and Other		3,166			343			508			447			106			1,198			8,593			14,361
Current Period Gross Write-offs		—			—			—			—			—			—			12			12

Total Period Gross Write-offs		—			—			—			—			—			—			12			12
Total Loans	$	347,028		$	891,791		$	382,482		$	986,986		$	598,625		$	496,774		$	316,390		$	4,020,076


		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

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

The following tables present the activity in the ACL, by segment, for the three months ended March 31, 2025 and 2024:


					Provision for
					(Recovery of)
					Credit Losses			Loans and						Total Ending
		Beginning			for Loans			Leases			Recoveries			Allowance
(dollars in thousands)		Balance			and Leases			Charged-off			of Loans			Balance
Three Months Ended March 31, 2025
Commercial		$	5,630		$	217		$	—		$	—		$	5,847
Leases			368			(3)			—			—			365
Construction and Land Development			866			209			—			—			1,075
1-4 Family Construction			331			(39)			—			—			292
Real Estate Mortgage:
1-4 Family Mortgage			2,795			(210)			—			—			2,585
Multifamily			23,120			807			—			—			23,927
CRE Owner Occupied			1,290			(64)			—			—			1,226
CRE Nonowner Occupied			17,735			579			—			—			18,314
Total Real Estate Mortgage Loans			44,940			1,112			—			—			46,052
Consumer and Other			142			4			(12)			1			135
Total		$	52,277		$	1,500		$	(12)		$	1		$	53,766


					Provision for
					(Recovery of)
					Credit Losses			Loans and						Total Ending
		Beginning			for Loans			Leases			Recoveries			Allowance
(dollars in thousands)		Balance			and Leases			Charged-off			of Loans			Balance
Three Months Ended March 31, 2024
Commercial		$	5,398		$	206		$	—		$	3		$	5,607
Leases			—			—			—			—			—
Construction and Land Development			2,156			(328)			—			—			1,828
1-4 Family Construction			558			19			—			—			577
Real Estate Mortgage:
1-4 Family Mortgage			2,651			102			—			1			2,754
Multifamily			22,217			13			—			—			22,230
CRE Owner Occupied			1,184			51			—			—			1,235
CRE Nonowner Occupied			16,225			780			—			—			17,005
Total Real Estate Mortgage Loans			42,277			946			—			1			43,224
Consumer and Other			105			7			(2)			1			111
Total		$	50,494		$	850		$	(2)		$	5		$	51,347

The following tables present the balance in the ACL and the recorded investment in loans, by segment, as of March 31, 2025 and December 31, 2024:


		Individually			Collectively
		Evaluated for			Evaluated for
(dollars in thousands)		Credit Loss			Credit Loss			Total
ACL at March 31, 2025
Commercial		$	288		$	5,559		$	5,847
Leases			6			359			365
Construction and Land Development			—			1,075			1,075
1-4 Family Construction			—			292			292
Real Estate Mortgage:
1-4 Family Mortgage			—			2,585			2,585
Multifamily			—			23,927			23,927
CRE Owner Occupied			—			1,226			1,226
CRE Nonowner Occupied			1,737			16,577			18,314
Total Real Estate Mortgage Loans			1,737			44,315			46,052
Consumer and Other			—			135			135
Total		$	2,031		$	51,735		$	53,766


		Individually			Collectively
		Evaluated for			Evaluated for
(dollars in thousands)		Credit Loss			Credit Loss			Total
ACL at December 31, 2024
Commercial		$	133		$	5,497		$	5,630
Leases			6			362			368
Construction and Land Development			—			866			866
1-4 Family Construction			—			331			331
Real Estate Mortgage:
1-4 Family Mortgage			—			2,795			2,795
Multifamily			—			23,120			23,120
CRE Owner Occupied			—			1,290			1,290
CRE Nonowner Occupied			—			17,735			17,735
Total Real Estate Mortgage Loans			—			44,940			44,940
Consumer and Other			5			137			142
Total		$	144		$	52,133		$	52,277


		Individually			Collectively
		Evaluated for			Evaluated for
(dollars in thousands)		Credit Loss			Credit Loss			Total
Loans at March 31, 2025
Commercial		$	14,138		$	514,663		$	528,801
Leases			34			43,924			43,958
Construction and Land Development			52			128,021			128,073
1-4 Family Construction			—			39,438			39,438
Real Estate Mortgage:
1-4 Family Mortgage			1,039			478,422			479,461
Multifamily			1,033			1,533,714			1,534,747
CRE Owner Occupied			1,546			194,534			196,080
CRE Nonowner Occupied			16,640			1,038,517			1,055,157
Total Real Estate Mortgage Loans			20,258			3,245,187			3,265,445
Consumer and Other			—			14,361			14,361
Total		$	34,482		$	3,985,594		$	4,020,076

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 March 31, 2025 and December 31, 2024:


		Primary Type of Collateral
					Business									ACL
(dollars in thousands)		Real Estate			Assets			Other			Total			Allocation
March 31, 2025
Commercial		$	—		$	3,691		$	10,447		$	14,138		$	288
Leases			—			—			34			34			6
Construction and Land Development			52			—			—			52			—
Real Estate Mortgage:
1-4 Family Mortgage			1,039			—			—			1,039			—
Multifamily			1,033			—			—			1,033			—
CRE Owner Occupied			1,546			—			—			1,546			—
CRE Nonowner Occupied			16,640			—			—			16,640			1,737
Totals		$	20,310		$	3,691		$	10,481		$	34,482		$	2,031


		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