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

6 Months Ended

Jun. 30, 2024

Receivables [Abstract]

Loan and Lease Receivables Composition

Loan and lease receivables consist of the following:


		June 30, 2024				December 31, 2023
		(In Thousands)
Commercial real estate:
Commercial real estate — owner occupied		$	258,636			$	256,479
Commercial real estate — non-owner occupied			777,704				773,494
Construction			229,181				193,080
Multi-family			470,176				450,529
1-4 family			39,680				26,289
Total commercial real estate			1,775,377				1,699,871
Commercial and industrial			1,161,711				1,105,835
Consumer and other			48,145				44,312
Total gross loans and leases receivable			2,985,233				2,850,018
Less:
Allowance for credit losses			33,088				31,275
Deferred loan fees and costs, net			(181	)			(243	)
Loans and leases receivable, net		$	2,952,326			$	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-accrual loans by class of receivable, and considering certain credit quality indicators:


June 30, 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		$	4,462			$	38,855			$	45,831			$	37,625			$	43,147			$	85,762			$	1,601			$	257,283
II			—				—				—				—				—				627				—				627
III			—				—				—				—				—				726				—				726
IV			—				—				—				—				—				—				—				—
Total		$	4,462			$	38,855			$	45,831			$	37,625			$	43,147			$	87,115			$	1,601			$	258,636
Commercial real estate — non-owner occupied
Category
I		$	20,745			$	69,397			$	76,022			$	71,520			$	86,670			$	355,584			$	38,587			$	718,525
II			—				—				—				2,273				2,202				38,409				—				42,884
III			—				664				—				—				—				15,631				—				16,295
IV			—				—				—				—				—				—				—				—
Total		$	20,745			$	70,061			$	76,022			$	73,793			$	88,872			$	409,624			$	38,587			$	777,704
Construction
Category
I		$	34,511			$	107,512			$	48,498			$	7,418			$	734			$	6,108			$	9,813			$	214,594
II			—				—				—				—				—				—				—				—
III			—				—				454				8,155				5,713				265				—				14,587
IV			—				—				—				—				—				—				—				—
Total		$	34,511			$	107,512			$	48,952			$	15,573			$	6,447			$	6,373			$	9,813			$	229,181
Multi-family
Category
I		$	26,146			$	71,764			$	60,429			$	69,456			$	102,624			$	136,857			$	2,900			$	470,176
II			—				—				—				—				—				—				—				—
III			—				—				—				—				—				—				—				—
IV			—				—				—				—				—				—				—				—
Total		$	26,146			$	71,764			$	60,429			$	69,456			$	102,624			$	136,857			$	2,900			$	470,176
1-4 family
Category
I		$	10,330			$	4,221			$	7,275			$	2,624			$	2,322			$	2,670			$	10,220			$	39,662
II			—				—				—				—				—				—				—				—
III			—				—				—				—				—				—				—				—
IV			—				—				—				—				—				18				—				18
Total		$	10,330			$	4,221			$	7,275			$	2,624			$	2,322			$	2,688			$	10,220			$	39,680
Commercial and industrial
Category
I		$	139,782			$	259,683			$	119,737			$	65,817			$	30,702			$	35,736			$	442,498			$	1,093,955
II			—				6,502				3,675				377				623				69				13,790				25,036
III			4,087				693				5,121				1,463				2,837				4,918				4,620				23,739
IV			—				3,224				5,840				959				468				2,033				6,457				18,981
Total		$	143,869			$	270,102			$	134,373			$	68,616			$	34,630			$	42,756			$	467,365			$	1,161,711
Consumer and other
Category
I		$	6,701			$	5,530			$	7,929			$	2,967			$	11,798			$	6,408			$	6,812			$	48,145
II			—				—				—				—				—				—				—				—
III			—				—				—				—				—				—				—				—
IV			—				—				—				—				—				—				—				—
Total		$	6,701			$	5,530			$	7,929			$	2,967			$	11,798			$	6,408			$	6,812			$	48,145
Total Loans
Category
I		$	242,677			$	556,962			$	365,721			$	257,427			$	277,997			$	629,125			$	512,431			$	2,842,340
II			—				6,502				3,675				2,650				2,825				39,105				13,790				68,547
III			4,087				1,357				5,575				9,618				8,550				21,540				4,620				55,347
IV			—				3,224				5,840				959				468				2,051				6,457				18,999
Total		$	246,764			$	568,045			$	380,811			$	270,654			$	289,840			$	691,821			$	537,298			$	2,985,233


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
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

Delinquency Aging of Loan and Lease Portfolio by Class of Receivable

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


		June 30, 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		$	—			$	—			$	—			$	—			$	258,636			$	258,636
Non-owner occupied			—				—				—				—				777,704				777,704
Construction			—				—				—				—				229,181				229,181
Multi-family			—				—				—				—				470,176				470,176
1-4 family			18				—				—				18				39,662				39,680
Commercial and industrial			4,539				1,163				8,483				14,185				1,147,526				1,161,711
Consumer and other			—				—				—				—				48,145				48,145
Total		$	4,557			$	1,163			$	8,483			$	14,203			$	2,971,030			$	2,985,233
Percent of portfolio			0.15	%			0.04	%			0.28	%			0.47	%			99.53	%			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:


		June 30, 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			18				—				—
Total commercial real estate			18				—				—
Commercial and industrial			9,546				9,435				—
Consumer and other			—				—				—
Total non-accrual loans and leases		$	9,564			$	9,435			$	—


		December 31, 2023
		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			—				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			$	—


		June 30, 2024				December 31, 2023
Total non-accrual loans and leases to gross loans and leases			0.64	%			0.72	%
Allowance for credit losses to gross loans and leases			1.17				1.16
Allowance for credit losses to non-accrual loans and leases			183.96				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:


		June 30, 2024				December 31, 2023
		(In Thousands)
Inventory		$	436			$	8,879
Equipment			9,506				8,903
Real Estate			136				46
Accounts Receivable			6,021				278
Other			1,147				1,348
Total		$	17,246			$	19,454

Summary of Activity in 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 June 30, 2024
		Owner Occupied				Non-Owner Occupied				Construction				Multi- Family				1-4 Family				Commercial and Industrial				Consumer and Other				Total
		(In Thousands)
Beginning balance		$	1,576			$	6,202			$	2,537			$	3,599			$	312			$	19,914			$	489			$	34,629
Charge-offs			—				—				—				—				—				(1,583	)			—				(1,583	)
Recoveries			—				—				—				—				5				165				21				191
Net recoveries (charge-offs)			—				—				—				—				5				(1,418	)			21				(1,392	)
Provision for credit losses			(45	)			213				508				153				144				784				(44	)			1,713
Ending balance		$	1,531			$	6,415			$	3,045			$	3,752			$	461			$	19,280			$	466			$	34,950
Components:
Allowance for credit losses on loans		$	1,519			$	6,374			$	1,963			$	3,723			$	425			$	18,671			$	413			$	33,088
Allowance for credit losses on unfunded credit commitments			12				41				1,082				29				36				609				53				1,862
Total ACL		$	1,531			$	6,415			$	3,045			$	3,752			$	461			$	19,280			$	466			$	34,950


		As of and for the Three Months Ended June 30, 2023
		Owner Occupied				Non-Owner Occupied				Construction				Multi- Family				1-4 Family				Commercial and Industrial				Consumer and Other				Total
		(In Thousands)
Beginning balance		$	1,656			$	4,966			$	2,287			$	2,901			$	221			$	14,905			$	614			$	27,550
Charge-offs			—				—				—				—				—				(329	)			—				(329	)
Recoveries			2				—				—				—				21				220				2				245
Net recoveries (charge-offs)			2				—				—				—				21				(109	)			2				(84	)
Provision for credit losses			63				275				6				525				7				1,427				(72	)			2,231
Ending balance		$	1,721			$	5,241			$	2,293			$	3,426			$	249			$	16,223			$	544			$	29,697
Components:
Allowance for credit losses on loans		$	1,703			$	5,182			$	1,483			$	3,414			$	228			$	15,624			$	481			$	28,115
Allowance for credit losses on unfunded credit commitments			18				59				810				12				21				599				63				1,582
Total ACL		$	1,721			$	5,241			$	2,293			$	3,426			$	249			$	16,223			$	544			$	29,697


		As of and for the Six Months Ended June 30, 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			—				—				—				—				—				(2,482	)			(22	)			(2,504	)
Recoveries			1				—				—				—				115				281				21				418
Net recoveries (charge-offs)			1				—				—				—				115				(2,201	)			(1	)			(2,086	)
Provision for credit losses			(10	)			779				920				181				80				2,073				16				4,039
Ending balance		$	1,531			$	6,415			$	3,045			$	3,752			$	461			$	19,280			$	466			$	34,950
Components:
Allowance for credit losses on loans		$	1,519			$	6,374			$	1,963			$	3,723			$	425			$	18,671			$	413			$	33,088
Allowance for credit losses on unfunded credit commitments			12				41				1,082				29				36				609				53				1,862
Total ACL		$	1,531			$	6,415			$	3,045			$	3,752			$	461			$	19,280			$	466			$	34,950


		As of and for the Six Months Ended June 30, 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			—				—				—				—				—				(495	)			—				(495	)
Recoveries			2				1				—				—				21				314				13				351
Net recoveries (charge-offs)			2				1				—				—				21				(181	)			13				(144	)
Provision for credit losses			157				374				(149	)			1,178				66				2,128				39				3,793
Ending balance		$	1,721			$	5,241			$	2,293			$	3,426			$	249			$	16,223			$	544			$	29,697
Components:
Allowance for credit losses on loans		$	1,703			$	5,182			$	1,483			$	3,414			$	228			$	15,624			$	481			$	28,115
Allowance for credit losses on unfunded credit commitments			18				59				810				12				21				599				63				1,582
Total ACL		$	1,721			$	5,241			$	2,293			$	3,426			$	249			$	16,223			$	544			$	29,697

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 June 30, 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		$	1,519			$	6,374			$	1,963			$	3,723			$	425			$	13,090			$	413			$	27,507
Individually evaluated for credit loss			—				—				—				—				—				5,581				—				5,581
Total		$	1,519			$	6,374			$	1,963			$	3,723			$	425			$	18,671			$	413			$	33,088
Loans and lease receivables:
Collectively evaluated for credit losses		$	258,636			$	777,704			$	229,181			$	470,176			$	39,662			$	1,142,730			$	48,145			$	2,966,234
Individually evaluated for credit loss			—				—				—				—				18				18,981				—				18,999
Total		$	258,636			$	777,704			$	229,181			$	470,176			$	39,680			$	1,161,711			$	48,145			$	2,985,233


		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