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Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses (Tables)

3 Months Ended

Mar. 31, 2023

Receivables [Abstract]

Loan Composition Schedule

Loan and lease receivables consist of the following:

						March 31, 2023						December 31, 2022
						(In Thousands)
Commercial real estate:
Commercial real estate — owner occupied						$	233,725					$	268,354
Commercial real estate — non-owner occupied						675,087						687,091
Construction						212,916						218,751
Multi-family						384,043						350,026
1-4 family						23,404						17,728
Total commercial real estate						1,529,175						1,541,950
Commercial and industrial						963,328						853,327
Consumer and other						46,773						47,938
Total gross loans and leases receivable						2,539,276						2,443,215
Less:
Allowance for credit losses						26,140						24,230
Deferred loan fees						(87)						149
Loans and leases receivable, net						$	2,513,223					$	2,418,836

Financing Receivable by Credit Quality Indicators

The following table illustrates ending balances of the Corporation’s loan and lease portfolio, including non-performing loans by class of receivable, and considering certain credit quality indicators:

March 31, 2023						Term Loans Amortized Cost Basis by Origination Year
(In Thousands)						2023						2022						2021						2020						2019						Prior						Revolving Loans Amortized Cost Basis						Total
Commercial real estate — owner occupied
Category
I						$	3,712					$	35,695					$	28,605					$	47,436					$	23,386					$	82,799					$	1,541					$	223,174
II						—						—						625						802						—						1,310						—						2,737
III						—						—						—						5,132						—						2,682						—						7,814
IV						—						—						—						—						—						—						—						—
Total						$	3,712					$	35,695					$	29,230					$	53,370					$	23,386					$	86,791					$	1,541					$	233,725
Commercial real estate — non-owner occupied
Category
I						$	8,945					$	67,653					$	74,530					$	53,133					$	64,228					$	310,632					$	33,571					$	612,692
II						—						—						—						1,293						6,187						10,653						—						18,133
III						—						—						—						—						19,708						24,554						—						44,262
IV						—						—						—						—						—						—						—						—
Total						$	8,945					$	67,653					$	74,530					$	54,426					$	90,123					$	345,839					$	33,571					$	675,087
Construction
Category
I						$	45					$	62,211					$	59,338					$	38,867					$	451					$	30,566					$	21,438					$	212,916
II						—						—						—						—						—						—						—						—
III						—						—						—						—						—						—						—						—
IV						—						—						—						—						—						—						—						—
Total						$	45					$	62,211					$	59,338					$	38,867					$	451					$	30,566					$	21,438					$	212,916
Multi-family
Category
I						$	32,389					$	35,629					$	50,672					$	114,782					$	23,198					$	124,160					$	3,213					$	384,043
II						—						—						—						—						—						—						—						—
III						—						—						—						—						—						—						—						—
IV						—						—						—						—						—						—						—						—
Total						$	32,389					$	35,629					$	50,672					$	114,782					$	23,198					$	124,160					$	3,213					$	384,043
1-4 family
Category
I						$	—					$	8,880					$	2,747					$	2,415					$	467					$	3,391					$	5,378					$	23,278
II						—						—						—						—						—						98						—						98
III						—						—						—						—						—						—						—						—
IV						—						—						—						—						—						28						—						28
Total						$	—					$	8,880					$	2,747					$	2,415					$	467					$	3,517					$	5,378					$	23,404

March 31, 2023						Term Loans Amortized Cost Basis by Origination Year
(In Thousands)						2023						2022						2021						2020						2019						Prior						Revolving Loans Amortized Cost Basis						Total
Commercial and industrial
Category
I						$	79,070					$	190,328					$	109,529					$	52,885					$	28,114					$	39,127					$	397,987					$	897,040
II						223						6,174						918						2,762						946						198						10,965						22,186
III						—						2,664						5,812						10,801						6,622						5,837						8,982						40,718
IV						—						1,134						1,003						539						338						370						—						3,384
Total						$	79,293					$	200,300					$	117,262					$	66,987					$	36,020					$	45,532					$	417,934					$	963,328
Consumer and other
Category
I						$	4,609					$	9,563					$	3,460					$	13,365					$	2,330					$	4,414					$	9,032					$	46,773
II						—						—						—						—						—						—						—						—
III						—						—						—						—						—						—						—						—
IV						—						—						—						—						—						—						—						—
Total						$	4,609					$	9,563					$	3,460					$	13,365					$	2,330					$	4,414					$	9,032					$	46,773

Past Due Financing Receivables

The delinquency aging of the loan and lease portfolio by class of receivable was as follows:

						March 31, 2023
						30-59 Days Past Due						60-89 Days Past Due						Greater Than 90 Days Past Due						Total Past Due						Current						Total Loans and Leases
						(Dollars in Thousands)
Performing loans and leases
Commercial real estate:
Owner occupied						$	—					$	—					$	—					$	—					$	233,725					$	233,725
Non-owner occupied						—						—						—						—						675,087						675,087
Construction						—						—						—						—						212,916						212,916
Multi-family						—						—						—						—						384,043						384,043
1-4 family						—						—						—						—						23,376						23,376
Commercial and industrial						2,440						103						—						2,543						957,401						959,944
Consumer and other						—						—						—						—						46,773						46,773
Total						2,440						103						—						2,543						2,533,321						2,535,864
Non-performing loans and leases
Commercial real estate:
Owner occupied						—						—						—						—						—						—
Non-owner occupied						—						—						—						—						—						—
Construction						—						—						—						—						—						—
Multi-family						—						—						—						—						—						—
1-4 family						—						—						—						—						28						28
Commercial and industrial						72						478						2,068						2,618						766						3,384
Consumer and other						—						—						—						—						—						—
Total						72						478						2,068						2,618						794						3,412
Total loans and leases
Commercial real estate:
Owner occupied						—						—						—						—						233,725						233,725
Non-owner occupied						—						—						—						—						675,087						675,087
Construction						—						—						—						—						212,916						212,916
Multi-family						—						—						—						—						384,043						384,043
1-4 family						—						—						—						—						23,404						23,404
Commercial and industrial						2,512						581						2,068						5,161						958,167						963,328
Consumer and other						—						—						—						—						46,773						46,773
Total						$	2,512					$	581					$	2,068					$	5,161					$	2,534,115					$	2,539,276
Percent of portfolio						0.10		%				0.02		%				0.08		%				0.20		%				99.80		%				100.00		%

						December 31, 2022
						30-59 Days Past Due						60-89 Days Past Due						Greater Than 90 Days Past Due						Total Past Due						Current						Total Loans and Leases
						(Dollars in Thousands)
Performing loans and leases
Commercial real estate:
Owner occupied						$	—					$	—					$	—					$	—					$	268,354					$	268,354
Non-owner occupied						215						—						—						215						686,876						687,091
Construction						—						—						—						—						218,751						218,751
Multi-family						—						—						—						—						350,026						350,026
1-4 family						—						—						—						—						17,698						17,698
Commercial and industrial						1,437						403						—						1,840						847,858						849,698
Consumer and other						—						—						—						—						47,938						47,938
Total						1,652						403						—						2,055						2,437,501						2,439,556
Non-performing loans and leases
Commercial real estate:
Owner occupied						—						—						—						—						—						—
Non-owner occupied						—						—						—						—						—						—
Construction						—						—						—						—						—						—
Multi-family						—						—						—						—						—						—
1-4 family						—						—						—						—						30						30
Commercial and industrial						439						126						2,464						3,029						600						3,629
Other						—						—						—						—						—						—
Total						439						126						2,464						3,029						630						3,659
Total loans and leases
Commercial real estate:
Owner occupied						—						—						—						—						268,354						268,354
Non-owner occupied						215						—						—						215						686,876						687,091
Construction						—						—						—						—						218,751						218,751
Multi-family						—						—						—						—						350,026						350,026
1-4 family						—						—						—						—						17,728						17,728
Commercial and industrial						1,876						529						2,464						4,869						848,458						853,327
Consumer and other						—						—						—						—						47,938						47,938
Total						$	2,091					$	529					$	2,464					$	5,084					$	2,438,131					$	2,443,215
Percent of portfolio						0.09		%				0.02		%				0.10		%				0.21		%				99.79		%				100.00		%

Schedule of Financing Receivables, Non-Performing Status

The Corporation’s total non-performing assets consisted of the following:

						March 31, 2023						December 31, 2022
						(In Thousands)
Non-performing loans and leases
Commercial real estate:
Commercial real estate — owner occupied						$	—					$	—
Commercial real estate — non-owner occupied						—						—
Construction						—						—
Multi-family						—						—
1-4 family						28						30
Total non-performing commercial real estate						28						30
Commercial and industrial						3,384						3,629
Consumer and other						—						—
Total non-performing loans and leases						3,412						3,659
Repossessed assets, net						89						95
Total non-performing assets						$	3,501					$	3,754

						March 31, 2023						December 31, 2022
Total non-performing loans and leases to gross loans and leases						0.13		%				0.15		%
Total non-performing assets to total gross loans and leases plus repossessed assets, net						0.14						0.15
Total non-performing assets to total assets						0.11						0.13
Allowance for credit losses to gross loans and leases						1.08						0.99
Allowance for credit losses to non-performing loans and leases						807.44						662.20

Impaired Financing Receivables

The following represents additional information regarding the Corporation’s non-performing loans and leases, by portfolio segment:

						As of and for the Three Months Ended March 31, 2023
						Recorded Investment(1)						Unpaid Principal Balance						Individual Reserve						Average Recorded Investment(2)						Foregone Interest Income						Interest Income Recognized						Net Foregone Interest Income
						(In Thousands)
With no individual reserve recorded:
Commercial real estate:
Owner occupied						$	—					$	—					$	—					$	—					$	—					$	—					$	—
Non-owner occupied						—						—						—						—						—						—						—
Construction						—						—						—						—						—						—						—
Multi-family						—						—						—						—						—						—						—
1-4 family						28						33						—						29						1						4						(3)
Commercial and industrial						1,009						1,009						—						1,842						23						36						(13)
Consumer and other						—						—						—						—						—						—						—
Total						1,037						1,042						—						1,871						24						40						(16)
With individual reserve recorded:
Commercial real estate:
Owner occupied						—						—						—						—						—						—						—
Non-owner occupied						—						—						—						—						—						—						—
Construction						—						—						—						—						—						—						—
Multi-family						—						—						—						—						—						—						—
1-4 family						—						—						—						—						—						—						—
Commercial and industrial						2,375						2,375						1,622						1,665						54						—						54
Consumer and other						—						—						—						—						—						—						—
Total						2,375						2,375						1,622						1,665						54						—						54
Total:
Commercial real estate:
Owner occupied						—						—						—						—						—						—						—
Non-owner occupied						—						—						—						—						—						—						—
Construction						—						—						—						—						—						—						—
Multi-family						—						—						—						—						—						—						—
1-4 family						28						33						—						29						1						4						(3)
Commercial and industrial						3,384						3,384						1,622						3,507						77						36						41
Consumer and other						—						—						—						—						—						—						—
Grand total						$	3,412					$	3,417					$	1,622					$	3,536					$	78					$	40					$	38

(1)The recorded investment represents the unpaid principal balance net of any partial charge-offs.

(2)Average recorded investment is calculated primarily using daily average balances.

						As of and for the Year Ended December 31, 2022
						Recorded Investment(1)						Unpaid Principal Balance						Individual Reserve						Average Recorded Investment(2)						Foregone Interest Income						Interest Income Recognized						Net Foregone Interest Income
						(In Thousands)
With no individual reserve recorded:
Commercial real estate:
Owner occupied						$	—					$	—					$	—					$	180					$	14					$	759					$	(745)
Non-owner occupied						—						—						—						—						—						1						(1)
Construction						—						—						—						—						—						47						(47)
Multi-family						—						—						—						—						—						—						—
1-4 family						30						35						—						112						8						41						(33)
Commercial and industrial						1,037						1,037						—						3,153						277						587						(310)
Consumer and other						—						—						—						—						—						—						—
Total						1,067						1,072						—						3,445						299						1,435						(1,136)
With individual reserve recorded:
Commercial real estate:
Owner occupied						—						—						—						—						—						—						—
Non-owner occupied						—						—						—						—						—						—						—
Construction						—						—						—						—						—						—						—
Multi-family						—						—						—						—						—						—						—
1-4 family						—						—						—						—						—						—						—
Commercial and industrial						2,592						2,612						1,650						1,454						101						1						100
Consumer and other						—						—						—						—						—						—						—
Total						2,592						2,612						1,650						1,454						101						1						100
Total:
Commercial real estate:
Owner occupied						—						—						—						180						14						759						(745)
Non-owner occupied						—						—						—						—						—						1						(1)
Construction						—						—						—						—						—						47						(47)
Multi-family						—						—						—						—						—						—						—
1-4 family						30						35						—						112						8						41						(33)
Commercial and industrial						3,629						3,649						1,650						4,607						378						588						(210)
Consumer and other						—						—						—						—						—						—						—
Grand total						$	3,659					$	3,684					$	1,650					$	4,899					$	400					$	1,436					$	(1,036)

(1)The recorded investment represents the unpaid principal balance net of any partial charge-offs.

(2)Average recorded investment is calculated primarily using daily average balances.

Allowance for Credit Losses by Portfolio Segment

A summary of the activity in the allowance for credit losses by portfolio segment is as follows:

						As of and for the Three Months Ended March 31, 2023
						Owner Occupied						Non-Owner Occupied						Construction						Multi-Family						1-4 Family						Commercial and Industrial						Consumer and Other						Total
						(In Thousands)
Beginning balance						$	1,766					$	5,108					$	1,646					$	2,634					$	207					$	12,403					$	466					$	24,230
Impact of adopting ASC 326						(204)						(242)						796						(386)						(45)						1,873						26						1,818
Charge-offs						—						—						—						—						—						(166)						—						(166)
Recoveries						—						1						—						—						—						95						11						107
Net recoveries (charge-offs)						—						1						—						—						—						(71)						11						(59)
Provision for credit losses						94						99						(155)						653						59						700						111						1,561
Ending balance						$	1,656					$	4,966					$	2,287					$	2,901					$	221					$	14,905					$	614					$	27,550
Components:
Allowance for loan losses						1,636						4,915						1,586						2,892						201						14,348						562						26,140
Allowance for unfunded credit commitments						20						51						701						9						20						557						52						1,410
Total ACL						$	1,656					$	4,966					$	2,287					$	2,901					$	221					$	14,905					$	614					$	27,550

						As of and for the Three Months Ended March 31, 2022
						Commercial Real Estate						Commercial and Industrial						Consumer and Other						Total
						(In Thousands)
Beginning balance						$	15,110					$	8,413					$	813					$	24,336
Charge-offs						—						(22)						—						(22)
Recoveries						116						84						10						210
Net recoveries (charge-offs)						116						62						10						188
Provision for credit losses						(1,461)						437						169						(855)
Ending balance						$	13,765					$	8,912					$	992					$	23,669

Allowance for Credit Losses and Balances by Type of Allowance Methodology

The following tables provide information regarding the allowance for credit losses and balances by type of allowance methodology.

						As of March 31, 2023
						Owner Occupied						Non-Owner Occupied						Construction						Multi-Family						1-4 Family						Commercial and Industrial						Consumer and Other						Total
						(In Thousands)
Allowance for credit losses:
Collectively evaluated for credit losses						$	1,636					$	4,915					$	1,586					$	2,892					$	201					$	12,726					$	562					$	24,518
Individually evaluated for credit loss						—						—						—						—						—						1,622						—						1,622
Total						$	1,636					$	4,915					$	1,586					$	2,892					$	201					$	14,348					$	562					$	26,140
Loans and lease receivables:
Collectively evaluated for credit losses						$	233,725					$	675,087					$	212,916					$	384,043					$	23,376					$	959,944					$	46,773					$	2,535,864
Individually evaluated for credit loss						—						—						—						—						28						3,384						—						3,412
Total						$	233,725					$	675,087					$	212,916					$	384,043					$	23,404					$	963,328					$	46,773					$	2,539,276

						As of December 31, 2022
						Commercial Real Estate						Commercial and Industrial						Consumer and Other						Total
						(In Thousands)
Allowance for credit losses:
Collectively evaluated for credit losses						$	11,361					$	10,753					$	466					$	22,580
Individually evaluated for credit loss						—						1,650						—						1,650
Total						$	11,361					$	12,403					$	466					$	24,230
Loans and lease receivables:
Collectively evaluated for credit losses						$	1,541,920					$	849,542					$	47,938					$	2,439,400
Individually evaluated for credit loss						30						3,785						—						3,815
Total						$	1,541,950					$	853,327					$	47,938					$	2,443,215

X

- Definition

Tabular disclosure of allowance for credit loss on financing receivable.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section 50
-Paragraph 11B
-URI https://asc.fasb.org/extlink&oid=123577603&loc=SL6953423-111524

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 326
-SubTopic 20
-Section 50
-Paragraph 13
-URI https://asc.fasb.org/extlink&oid=124255953&loc=SL82919249-210447

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X

- Definition

Tabular disclosure of financing receivables by credit quality indicator. The credit quality indicator is a statistic about the credit quality of financing receivables. Examples include, but not limited to, consumer credit risk scores, credit-rating-agency ratings, an entity's internal credit risk grades, loan-to-value ratios, collateral, collection experience and other internal metrics.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 326
-SubTopic 20
-Section 50
-Paragraph 5
-URI https://asc.fasb.org/extlink&oid=124255953&loc=SL82919230-210447

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section 50
-Paragraph 29
-URI https://asc.fasb.org/extlink&oid=123577603&loc=SL6953659-111524

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X

- Definition

Tabular disclosure of impaired financing receivables.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section 50
-Paragraph 15
-URI https://asc.fasb.org/extlink&oid=123577603&loc=d3e5212-111524

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Tabular disclosure of aging analysis for financing receivable.

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- Definition

Tabular disclosure of the various types of trade accounts and notes receivable and for each the gross carrying value, allowance, and net carrying value as of the balance sheet date. Presentation is categorized by current, noncurrent and unclassified receivables.

+ References

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- Definition

Tabular disclosure of allowance for credit loss of financing receivable, classified as current.

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-SubTopic 20
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- Definition

Tabular disclosure of financing receivable on nonaccrual status.

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-Name Accounting Standards Codification
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-Topic 326
-SubTopic 20
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-Paragraph 16
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