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Loans, Lease Receivables, and Allowance for Credit Losses (Tables)

3 Months Ended

Mar. 31, 2024

Receivables [Abstract]

Loan Composition Schedule

Loan and lease receivables consist of the following:

						March 31, 2024						December 31, 2023
						(In Thousands)
Commercial real estate:
Commercial real estate — owner occupied						$	263,748					$	256,479
Commercial real estate — non-owner occupied						792,858						773,494
Construction						202,382						193,080
Multi-family						453,321						450,529
1-4 family						27,482						26,289
Total commercial real estate						1,739,791						1,699,871
Commercial and industrial						1,120,779						1,105,835
Consumer and other						50,020						44,312
Total gross loans and leases receivable						2,910,590						2,850,018
Less:
Allowance for loan losses						32,799						31,275
Deferred loan fees and costs, net						(274)						(243)
Loans and leases receivable, net						$	2,878,065					$	2,818,986

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, 2024						Term Loans Amortized Cost Basis by Origination Year
(In Thousands)						2024						2023						2022						2021						2020						Prior						Revolving Loans Amortized Cost Basis						Total
Commercial real estate — owner occupied
Category
I						$	4,587					$	39,361					$	46,629					$	38,100					$	44,415					$	88,783					$	1,118					$	262,993
II						—						—						—						—						—						303						—						303
III						—						—						—						—						—						452						—						452
IV						—						—						—						—						—						—						—						—
Total						$	4,587					$	39,361					$	46,629					$	38,100					$	44,415					$	89,538					$	1,118					$	263,748
Commercial real estate — non-owner occupied
Category
I						$	14,263					$	71,834					$	76,485					$	72,049					$	87,338					$	368,191					$	34,705					$	724,865
II						—						—						—						2,289						2,227						43,867						—						48,383
III						—						680						—						—						—						18,930						—						19,610
IV						—						—						—						—						—						—						—						—
Total						$	14,263					$	72,514					$	76,485					$	74,338					$	89,565					$	430,988					$	34,705					$	792,858
Construction
Category
I						$	10,982					$	85,216					$	64,039					$	8,845					$	739					$	6,148					$	10,688					$	186,657
II						—						—						—						—						—						—						—						—
III						—						—						454						9,289						5,713						269						—						15,725
IV						—						—						—						—						—						—						—						—
Total						$	10,982					$	85,216					$	64,493					$	18,134					$	6,452					$	6,417					$	10,688					$	202,382
Multi-family
Category
I						$	19,964					$	77,049					$	42,927					$	69,755					$	103,163					$	137,451					$	3,012					$	453,321
II						—						—						—						—						—						—						—						—
III						—						—						—						—						—						—						—						—
IV						—						—						—						—						—						—						—						—
Total						$	19,964					$	77,049					$	42,927					$	69,755					$	103,163					$	137,451					$	3,012					$	453,321
1-4 family
Category
I						$	599					$	4,231					$	7,395					$	2,642					$	2,340					$	3,004					$	7,251					$	27,462
II						—						—						—						—						—						—						—						—
III						—						—						—						—						—						—						—						—
IV						—						—						—						—						—						20						—						20
Total						$	599					$	4,231					$	7,395					$	2,642					$	2,340					$	3,024					$	7,251					$	27,482

March 31, 2024						Term Loans Amortized Cost Basis by Origination Year
(In Thousands)						2024						2023						2022						2021						2020						Prior						Revolving Loans Amortized Cost Basis						Total
Commercial and industrial
Category
I						$	62,280					$	281,217					$	128,662					$	76,007					$	34,882					$	41,167					$	434,523					$	1,058,738
II						4,161						1,778						5,952						839						255						264						5,287						18,536
III						—						1,277						7,612						1,802						1,403						4,989						6,613						23,696
IV						—						2,593						6,366						1,221						523						1,627						7,479						19,809
Total						$	66,441					$	286,865					$	148,592					$	79,869					$	37,063					$	48,047					$	453,902					$	1,120,779
Consumer and other
Category
I						$	6,738					$	5,873					$	8,182					$	3,068					$	12,139					$	5,989					$	8,031					$	50,020
II						—						—						—						—						—						—						—						—
III						—						—						—						—						—						—						—						—
IV						—						—						—						—						—						—						—						—
Total						$	6,738					$	5,873					$	8,182					$	3,068					$	12,139					$	5,989					$	8,031					$	50,020
Total Loans
Category
I						$	119,413					$	564,781					$	374,319					$	270,466					$	285,016					$	650,733					$	499,328					$	2,764,056
II						4,161						1,778						5,952						3,128						2,482						44,434						5,287						67,222
III						—						1,957						8,066						11,091						7,116						24,640						6,613						59,483
IV						—						2,593						6,366						1,221						523						1,647						7,479						$	19,829
Total						$	123,574					$	571,109					$	394,703					$	285,906					$	295,137					$	721,454					$	518,707					$	2,910,590

December 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						$	31,637					$	43,156					$	38,803					$	44,704					$	22,078					$	72,774					$	451					$	253,603
II						—						—						—						260						—						—						—						260
III						—						—						—						—						—						2,616						—						2,616
IV						—						—						—						—						—						—						—						—
Total						$	31,637					$	43,156					$	38,803					$	44,964					$	22,078					$	75,390					$	451					$	256,479
Commercial real estate — non-owner occupied
Category
I						$	71,857					$	76,689					$	72,660					$	78,212					$	66,262					$	314,970					$	32,478					$	713,128
II						—						—						2,302						2,252						19,838						16,274						—						40,666
III						—						—						—						—						—						19,700						—						19,700
IV						—						—						—						—						—						—						—						—
Total						$	71,857					$	76,689					$	74,962					$	80,464					$	86,100					$	350,944					$	32,478					$	773,494
Construction
Category
I						$	63,660					$	83,161					$	8,542					$	744					$	433					$	6,528					$	15,011					$	178,079
II						—						—						9,289						5,712						—						—						—						15,001
III						—						—						—						—						—						—						—						—
IV						—						—						—						—						—						—						—						—
Total						$	63,660					$	83,161					$	17,831					$	6,456					$	433					$	6,528					$	15,011					$	193,080
Multi-family
Category
I						$	84,932					$	41,068					$	70,054					$	113,294					$	22,925					$	115,243					$	3,013					$	450,529
II						—						—						—						—						—						—						—						—
III						—						—						—						—						—						—						—						—
IV						—						—						—						—						—						—						—						—
Total						$	84,932					$	41,068					$	70,054					$	113,294					$	22,925					$	115,243					$	3,013					$	450,529
1-4 family
Category
I						$	4,242					$	7,684					$	2,672					$	2,359					$	443					$	2,805					$	6,062					$	26,267
II						—						—						—						—						—						—						—						—
III						—						—						—						—						—						—						—						—
IV						—						—						—						—						—						22						—						22
Total						$	4,242					$	7,684					$	2,672					$	2,359					$	443					$	2,827					$	6,062					$	26,289

December 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						$	302,612					$	144,167					$	85,504					$	38,164					$	20,151					$	26,490					$	415,301					$	1,032,389
II						1,496						5,280						785						353						94						219						5,706						13,933
III						1,093						7,168						1,882						5,919						3,861						3,957						15,058						38,938
IV						1,482						6,519						1,319						321						133						1,644						9,157						20,575
Total						$	306,683					$	163,134					$	89,490					$	44,757					$	24,239					$	32,310					$	445,222					$	1,105,835
Consumer and other
Category
I						$	5,920					$	8,786					$	3,167					$	12,193					$	2,049					$	3,485					$	8,712					$	44,312
II						—						—						—						—						—						—						—						—
III						—						—						—						—						—						—						—						—
IV						—						—						—						—						—						—						—						—
Total						$	5,920					$	8,786					$	3,167					$	12,193					$	2,049					$	3,485					$	8,712					$	44,312
Total Loans
Category
I						$	564,860					$	404,711					$	281,402					$	289,670					$	134,341					$	542,295					$	481,028					$	2,698,307
II						1,496						5,280						12,376						8,577						19,932						16,493						5,706						69,860
III						1,093						7,168						1,882						5,919						3,861						26,273						15,058						61,254
IV						1,482						6,519						1,319						321						133						1,666						9,157						$	20,597
Total						$	568,931					$	423,678					$	296,979					$	304,487					$	158,267					$	586,727					$	510,949					$	2,850,018

Past Due Financing Receivables

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

						March 31, 2024
						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)
Total loans and leases
Commercial real estate:
Owner occupied						$	—					$	—					$	—					$	—					$	263,748					$	263,748
Non-owner occupied						—						—						—						—						792,858						792,858
Construction						—						—						—						—						202,382						202,382
Multi-family						—						—						—						—						453,321						453,321
1-4 family						—						—						—						—						27,482						27,482
Commercial and industrial						2,071						480						16,745						19,296						1,101,483						1,120,779
Consumer and other						—						—						—						—						50,020						50,020
Total						$	2,071					$	480					$	16,745					$	19,296					$	2,891,294					$	2,910,590
Percent of portfolio						0.07		%				0.02		%				0.57		%				0.66		%				99.34		%				100.00		%

						December 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)
Total loans and leases
Commercial real estate:
Owner occupied						$	—					$	—					$	—					$	—					$	256,479					$	256,479
Non-owner occupied						—						—						—						—						773,494						773,494
Construction						—						—						—						—						193,080						193,080
Multi-family						—						—						—						—						450,529						450,529
1-4 family						—						—						—						—						26,289						26,289
Commercial and industrial						3,430						1,041						18,347						22,818						1,083,017						1,105,835
Consumer and other						—						—						—						—						44,312						44,312
Total						$	3,430					$	1,041					$	18,347					$	22,818					$	2,827,200					$	2,850,018
Percent of portfolio						0.12		%				0.04		%				0.64		%				0.80		%				99.20		%				100.00		%

Schedule of Financing Receivables, Non-Performing Status

The following tables present the amortized cost basis of loans on non-accrual status and loans past due over 89 days still accruing as of:

						March 31, 2024
						Non-accrual With No Allowance for Credit Loss						Non-accrual With Allowance for Credit Loss						Loans Past Due Over 89 Days Still Accruing
						(In Thousands)
Commercial real estate:
Commercial real estate — owner occupied						$	—					$	—					$	—
Commercial real estate — non-owner occupied						—						—						—
Construction						—						—						—
Multi-family						—						—						—
1-4 family						20						—						—
Total commercial real estate						20						—						—
Commercial and industrial						9,305						10,504						—
Consumer and other						—						—						—
Total non-accrual loans and leases						$	9,325					$	10,504					$	—

						December 31, 2023
						Non-accrual With No Allowance for Credit Loss						Non-accrual						Loans Past Due Over 89 Days Still Accruing
						(In Thousands)
Commercial real estate:
Commercial real estate — owner occupied						$	—					$	—					$	—
Commercial real estate — non-owner occupied						—						—						—
Construction						—						—						—
Multi-family						—						—						—
1-4 family						—						22						—
Total commercial real estate						—						22						—
Commercial and industrial						9,690						10,885						—
Consumer and other						—						—						—
Total non-accrual loans and leases						$	9,690					$	10,907					$	—

						March 31, 2024						December 31, 2023
Total non-accrual loans and leases to gross loans and leases						0.68		%				0.72		%
Allowance for credit losses to gross loans and leases						1.19						1.16
Allowance for credit losses to non-accrual loans and leases						174.64						160.21

Schedule of Collateral Dependent Loans

The following table presents the amortized cost basis of the non-accrual, collateral-dependent commercial and industrial loans as of:

						March 31, 2024						December 31, 2023
						(In Thousands)
Inventory						$	1,120					$	8,879
Equipment						4,753						3,740
Real Estate						140						46
Accounts Receivable						6,359						278
Other						1,191						1,348
Total						$	13,563					$	14,291

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, 2024
						Owner Occupied						Non-Owner Occupied						Construction						Multi-Family						1-4 Family						Commercial and Industrial						Consumer and Other						Total
						(In Thousands)
Beginning balance						$	1,540					$	5,636					$	2,125					$	3,571					$	266					$	19,408					$	451					$	32,997
Charge-offs						—						—						—						—						—						(899)						(22)						(921)
Recoveries						1						—						—						—						110						116						—						227
Net recoveries (charge-offs)						1						—						—						—						110						(783)						(22)						(694)
Provision for credit losses						35						566						412						28						(64)						1,289						60						2,326
Ending balance						$	1,576					$	6,202					$	2,537					$	3,599					$	312					$	19,914					$	489					$	34,629
Components:
Allowance for credit losses on loans						1,562						6,164						1,515						3,588						282						19,250						438						32,799
Allowance for credit losses on unfunded credit commitments						14						38						1,022						11						30						664						51						1,830
Total ACL						$	1,576					$	6,202					$	2,537					$	3,599					$	312					$	19,914					$	489					$	34,629

						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 credit losses on loans						$	1,636					$	4,915					$	1,586					$	2,892					$	201					$	14,348					$	562					$	26,140
Allowance for credit losses on 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

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, 2024
						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						$	1,562					$	6,164					$	1,515					$	3,588					$	282					$	12,632					$	438					$	26,181
Individually evaluated for credit loss						—						—						—						—						—						6,618						—						6,618
Total						$	1,562					$	6,164					$	1,515					$	3,588					$	282					$	19,250					$	438					$	32,799
Loans and lease receivables:
Collectively evaluated for credit losses						$	263,748					$	792,858					$	202,382					$	453,321					$	27,462					$	1,100,970					$	50,020					$	2,890,761
Individually evaluated for credit loss						—						—						—						—						20						19,809						—						19,829
Total						$	263,748					$	792,858					$	202,382					$	453,321					$	27,482					$	1,120,779					$	50,020					$	2,910,590

						As of December 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						$	1,525					$	5,596					$	1,244					$	3,562					$	221					$	12,743					$	395					$	25,286
Individually evaluated for credit loss						—						—						—						—						22						5,967						—						5,989
Total						$	1,525					$	5,596					$	1,244					$	3,562					$	243					$	18,710					$	395					$	31,275
Loans and lease receivables:
Collectively evaluated for credit losses						$	256,479					$	773,494					$	193,080					$	450,529					$	26,267					$	1,085,260					$	44,312					$	2,829,421
Individually evaluated for credit loss						—						—						—						—						22						20,575						—						20,597
Total						$	256,479					$	773,494					$	193,080					$	450,529					$	26,289					$	1,105,835					$	44,312					$	2,850,018

X

- Definition

Schedule of Collateral Dependent Loans

+ References

No definition available.

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X

- Definition

Tabular disclosure of allowance for credit loss on financing receivable.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 326
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479319/326-20-50-13

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section 50
-Paragraph 11B
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481962/310-10-50-11B

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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
-Topic 326
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
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-Topic 310
-SubTopic 10
-Section 50
-Paragraph 29
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481962/310-10-50-29

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- Definition

Tabular disclosure of aging analysis for financing receivable.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 326
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479319/326-20-50-14

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 326
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-Name Accounting Standards Codification
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-Topic 310
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- References

No definition available.

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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

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.3,4)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480566/210-10-S99-1

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- Definition

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

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 326
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
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-Subparagraph (c)
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-URI https://asc.fasb.org//1943274/2147481962/310-10-50-11B

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- Definition

Tabular disclosure of financing receivable on nonaccrual status.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 326
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 16
-Publisher FASB
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