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

12 Months Ended

Dec. 31, 2024

Receivables [Abstract]

Loan and Lease Receivables Composition

Loan and lease receivables consist of the following:


		December 31, 2024				December 31, 2023
		(In Thousands)
Commercial real estate:
Commercial real estate — owner occupied		$	273,397			$	256,479
Commercial real estate — non-owner occupied			845,298				773,494
Construction			221,086				193,080
Multi-family			530,853				450,529
1-4 family			46,496				26,289
Total commercial real estate			1,917,130				1,699,871
Commercial and industrial			1,151,720				1,105,835
Consumer and other			45,000				44,312
Total gross loans and leases receivable			3,113,850				2,850,018
Less:
Allowance for credit losses			35,785				31,275
Deferred loan fees and costs, net			722				(243	)
Loans and leases receivable, net		$	3,077,343			$	2,818,986

Schedule of Related Party Transactions

Certain of the Corporation’s executive officers, directors, and their related interests are loan clients of the Bank. These loans to related parties are summarized below:


		December 31, 2024				December 31, 2023
		(In Thousands)
Balance at beginning of year		$	263			$	224
New loans			381				349
Repayments			(399	)			(310	)
Balance at end of year		$	245			$	263

Net Investment In Direct Financing Leases

The Corporation’s net investment in direct financing leases consists of the following:


		December 31,				December 31,
		2024				2023
		(In Thousands)
Minimum lease payments receivable		$	8,975			$	9,660
Estimated unguaranteed residual values in leased property			632				1,468
Unearned lease and residual income			(1,148	)			(1,362	)
Investment in commercial direct financing leases		$	8,459			$	9,766

Summarr of Future Aggregate Maturities of Minimum Lease Payments to Be Received

Future aggregate maturities of minimum lease payments to be received are as follows:


(In Thousands)
Maturities during year ended December 31,
2025		$	3,108
2026			2,409
2027			1,898
2028			1,052
2029		469
Thereafter		39
		$	8,975

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:


December 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		$	26,508			$	45,066			$	42,849			$	34,486			$	37,078			$	85,405			$	447			$	271,839
II			—				—				—				—				—				—				—				—
III			750				—				—				—				—				217				—				967
IV			—				—				—				—				—				591				—				591
Total		$	27,258			$	45,066			$	42,849			$	34,486			$	37,078			$	86,213			$	447			$	273,397
Commercial real estate — non-owner occupied
Category
I		$	80,371			$	85,651			$	89,181			$	69,129			$	85,238			$	340,802			$	37,129			$	787,501
II			—				—				—				—				2,150				31,720				—				33,870
III			—				638				—				—				—				23,289				—				23,927
IV			—				—				—				—				—				—				—				—
Total		$	80,371			$	86,289			$	89,181			$	69,129			$	87,388			$	395,811			$	37,129			$	845,298
Construction
Category
I		$	36,135			$	110,437			$	24,302			$	1,183			$	719			$	5,520			$	28,205			$	206,501
II			—				—				—				—				—				—				—				—
III			—				—				454				8,155				5,713				263				—				14,585
IV			—				—				—				—				—				—				—				—
Total		$	36,135			$	110,437			$	24,756			$	9,338			$	6,432			$	5,783			$	28,205			$	221,086
Multi-family
Category
I		$	40,079			$	102,886			$	74,753			$	66,775			$	97,303			$	134,331			$	2,288			$	518,415
II			—				—				7,407				2,584				—				1,043				—				11,034
III			—				—				—				1,404				—				—				—				1,404
IV			—				—				—				—				—				—				—				—
Total		$	40,079			$	102,886			$	82,160			$	70,763			$	97,303			$	135,374			$	2,288			$	530,853
1-4 family
Category
I		$	15,220			$	4,200			$	7,005			$	2,336			$	2,282			$	2,178			$	13,275			$	46,496
II			—				—				—				—				—				—				—				—
III			—				—				—				—				—				—				—				—
IV			—				—				—				—				—				—				—				—
Total		$	15,220			$	4,200			$	7,005			$	2,336			$	2,282			$	2,178			$	13,275			$	46,496
Commercial and industrial
Category
I		$	259,976			$	216,621			$	93,119			$	52,066			$	23,960			$	27,370			$	405,499			$	1,078,611
II			316				2,700				2,657				—				470				8				7,676				13,827
III			4,205				5,418				3,909				1,379				2,446				3,957				10,192				31,506
IV			536				4,060				6,245				1,038				274				2,519				13,104				27,776
Total		$	265,033			$	228,799			$	105,930			$	54,483			$	27,150			$	33,854			$	436,471			$	1,151,720
Consumer and other
Category
I		$	6,955			$	5,244			$	7,416			$	2,764			$	10,994			$	3,885			$	7,742			$	45,000
II			—				—				—				—				—				—				—				—
III			—				—				—				—				—				—				—				—
IV			—				—				—				—				—				—				—				—
Total		$	6,955			$	5,244			$	7,416			$	2,764			$	10,994			$	3,885			$	7,742			$	45,000
Total Loans
Category
I		$	465,244			$	570,105			$	338,625			$	228,739			$	257,574			$	599,491			$	494,585			$	2,954,363
II			316				2,700				10,064				2,584				2,620				32,771				7,676				58,731
III			4,955				6,056				4,363				10,938				8,159				27,726				10,192				72,389
IV			536				4,060				6,245				1,038				274				3,110				13,104				28,367
Total		$	471,051			$	582,921			$	359,297			$	243,299			$	268,627			$	663,098			$	525,557			$	3,113,850


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:


		December 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)
Commercial real estate:
Owner occupied		$	1,102			$	—			$	—			$	1,102			$	272,295			$	273,397
Non-owner occupied			—				—				—				—				845,298				845,298
Construction			14,321				263				—				14,584				206,502				221,086
Multi-family			—				—				—				—				530,853				530,853
1-4 family			—				—				—				—				46,496				46,496
Commercial and industrial			5,405				1,072				18,984				25,461				1,126,259				1,151,720
Consumer and other			—				10				—				10				44,990				45,000
Total		$	20,828			$	1,345			$	18,984			$	41,157			$	3,072,693			$	3,113,850
Percent of portfolio			0.67	%			0.04	%			0.61	%			1.32	%			98.68	%			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)
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 provide additional detail on loans on non-accrual status and loans past due over 89 days still accruing as of:


		December 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		$	—			$	591			$	—
Commercial real estate — non-owner occupied			—				—				—
Construction			—				—				—
Multi-family			—				—				—
1-4 family			—				—				—
Total commercial real estate			—				591				—
Commercial and industrial			13,125				14,651				—
Consumer and other			—				—				—
Total non-accrual loans and leases		$	13,125			$	15,242			$	—


		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			9,691				10,884				—
Consumer and other			—				—				—
Total non-accrual loans and leases		$	9,691			$	10,906			$	—


		December 31, 2024				December 31, 2023
Total non-accrual loans and leases to gross loans and leases			0.91	%			0.72	%
Allowance for credit losses to gross loans and leases			1.20				1.16
Allowance for credit losses to non-accrual loans and leases			131.38				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:


		December 31, 2024				December 31, 2023
		(In Thousands)
Inventory		$	—			$	8,879
Equipment			18,185				8,903
Real Estate			926				46
Accounts Receivable			6,570				278
Other			821				1,348
Total		$	26,502			$	19,454

Summary of Financial Difficulty and Modification Type

The following table presents the amortized cost basis of loans at December 31, 2024 that were both experiencing financial difficulty and modified during the years ended December 31, 2024 and 2023, by class and by type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized costs basis of each class of financing receivable is also presented below.


		For the Year Ended December 31, 2024
		Principal Forgiveness		Payment Delay		Term Extension		Interest Rate Reduction		Combination Term Extension and Payment Delay		Total		Total Class of Financing Receivable
		(In Thousands)
Commercial real estate		$—		$5,901		$—		$—		$—		$5,901		0.31%
Commercial and industrial		—		7,108		455		—		550		8,113		0.70
Total		$—		$13,009		$455		$—		$550		$14,014		0.45%


		For the Year Ended December 31, 2023
		Principal Forgiveness		Payment Delay		Term Extension		Interest Rate Reduction		Combination Term Extension and Payment Delay		Total		Total Class of Financing Receivable
		(In Thousands)
Commercial real estate		$—		$—		$—		$—		$—		$—		0.00%
Commercial and industrial		—		882		—		—		—		882		0.08
Total		$—		$882		$—		$—		$—		$882		0.03%

The Corporation closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents the performance of such loans that have been modified in the last 12 months:


		For the Year Ended December 31, 2024
		30-59 Days Past Due				60-89 Days Past Due				Greater Than 90 Days Past Due				Total Past Due
		(Dollars in Thousands)
Commercial real estate		$	—			$	—			$	—			$	—
Commercial and industrial			—				—				410				410
Total		$	—			$	—			$	410			$	410


		For the Year Ended December 31, 2023
		30-59 Days Past Due				60-89 Days Past Due				Greater Than 90 Days Past Due				Total Past Due
		(Dollars in Thousands)
Commercial real estate		$	—			$	—			$	—			$	—
Commercial and industrial			—				—				382				382
Total		$	—			$	—			$	382			$	382

The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the years ended December 31, 2024 and 2023:


		For the Year Ended December 31, 2024
(Dollars in Thousands)		Principal Forgiveness				Weighted Average Interest Rate Reduction				Weighted Average Term Extension (years)				Weighted Average Payment Delay (years)
Commercial real estate		$	—			$	—				0.00				1.17
Commercial and industrial			—				—				0.78				0.73
Total		$	—			$	—				0.78				1.90


		For the Year Ended December 31, 2023
(Dollars in Thousands)		Principal Forgiveness				Weighted Average Interest Rate Reduction				Weighted Average Term Extension (years)				Weighted Average Payment Delay (years)
Commercial real estate		$	—			$	—				0.00				0.00
Commercial and industrial			—				—				0.00				0.52
Total		$	—			$	—				0.00				0.52

Schedule of Amortized Cost Basis of Loans That Had Payment Default

The following table presents the amortized cost basis of loans that had a payment default during the years ended December 31, 2024 and 2023 and were modified in the 12 months prior to that default to borrowers experience financial difficulty:


		For the Year Ended December 31, 2024
		Principal Forgiveness				Payment Delay				Term Extension				Interest Rate Reduction
		(In Thousands)
Commercial real estate		$	—			$	—			$	—			$	—
Commercial and industrial			—				753				—				—
Total		$	—			$	753			$	—			$	—


		For the Year Ended December 31, 2023
		Principal Forgiveness				Payment Delay				Term Extension				Interest Rate Reduction
		(In Thousands)
Commercial real estate		$	—			$	—			$	—			$	—
Commercial and industrial			—				382				—				—
Total		$	—			$	382			$	—			$	—

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 Year Ended December 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			—				—				—				—				—				(5,233	)			(22	)			(5,255	)
Recoveries			5				—				—				—				132				541				21				699
Net recoveries (charge-offs)			5				—				—				—				132				(4,692	)			(1	)			(4,556	)
Provision for credit losses			84				256				701				1,042				125				6,754				(135	)			8,827
Ending balance		$	1,629			$	5,892			$	2,826			$	4,613			$	523			$	21,470			$	315			$	37,268
Components:
Allowance for credit losses on loans		$	1,615			$	5,843			$	2,022			$	4,597			$	492			$	20,934			$	282			$	35,785
Allowance for credit losses on unfunded credit commitments			14				49				804				16				31				536				33				1,483
Total ACL		$	1,629			$	5,892			$	2,826			$	4,613			$	523			$	21,470			$	315			$	37,268


		As of and for the Year Ended December 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			—				—				—				—				—				(1,781	)			—				(1,781	)
Recoveries			9				1				—				—				40				478				20				548
Net recoveries (charge-offs)			9				1				—				—				40				(1,303	)			20				(1,233	)
Provision for credit losses			(31	)			769				(317	)			1,323				64				6,435				(61	)			8,182
Ending balance		$	1,540			$	5,636			$	2,125			$	3,571			$	266			$	19,408			$	451			$	32,997
Components:
Allowance for credit losses on loans		$	1,525			$	5,596			$	1,244			$	3,562			$	243			$	18,710			$	395			$	31,275
Allowance for credit losses on unfunded credit commitments			15				40				881				9				23				698				56				1,722
Total ACL		$	1,540			$	5,636			$	2,125			$	3,571			$	266			$	19,408			$	451			$	32,997


		As of and for the Year Ended December 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			—				(958	)			(21	)			(979	)
Recoveries			4,262				437				42				4,741
Net recoveries (charge-offs)			4,262				(521	)			21				3,762
Provision for credit losses			(6,812	)			3,236				(292	)			(3,868	)
Ending balance		$	12,560			$	11,128			$	542			$	24,230

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 December 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		$	1,615			$	5,843			$	2,022			$	4,597			$	492			$	12,016			$	282			$	26,867
Individually evaluated for credit loss			—				—				—				—				—				8,918				—				8,918
Total		$	1,615			$	5,843			$	2,022			$	4,597			$	492			$	20,934			$	282			$	35,785
Loans and lease receivables:
Collectively evaluated for credit losses		$	272,806			$	845,298			$	221,086			$	530,853			$	46,496			$	1,123,944			$	45,000			$	3,085,483
Individually evaluated for credit loss			591				—				—				—				—				27,776				—				28,367
Total		$	273,397			$	845,298			$	221,086			$	530,853			$	46,496			$	1,151,720			$	45,000			$	3,113,850


		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