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

3 Months Ended

Mar. 31, 2025

Receivables [Abstract]

Loan and Lease Receivables Composition

Loan and lease receivables consist of the following:


		March 31, 2025				December 31, 2024
		(In Thousands)
Commercial real estate:
Commercial real estate — owner occupied		$	258,050			$	273,397
Commercial real estate — non-owner occupied			838,634				845,298
Construction			215,613				221,086
Multi-family			549,220				530,853
1-4 family			48,450				46,496
Total commercial real estate			1,909,967				1,917,130
Commercial and industrial			1,229,098				1,151,720
Consumer and other			46,190				45,000
Total gross loans and leases receivable			3,185,255				3,113,850
Less:
Allowance for credit losses			35,236				35,785
Deferred loan fees and costs, net			855				722
Loans and leases receivable, net		$	3,149,164			$	3,077,343

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:


March 31, 2025		Term Loans Amortized Cost Basis by Origination Year
(In Thousands)		2025				2024				2023				2022				2021				Prior				Revolving Loans Amortized Cost Basis				Total
Commercial real estate — owner occupied
Category
I		$	8,824			$	23,019			$	40,435			$	33,575			$	33,300			$	114,550			$	300			$	254,003
II			—				1,479				—				—				—				—				—				1,479
III			—				750				—				—				—				1,251				—				2,001
IV			—				—				—				—				—				567				—				567
Total		$	8,824			$	25,248			$	40,435			$	33,575			$	33,300			$	116,368			$	300			$	258,050
Commercial real estate — non-owner occupied
Category
I		$	—			$	78,010			$	89,081			$	97,362			$	69,335			$	420,744			$	39,931			$	794,463
II			—				—				—				—				—				29,261				—				29,261
III			—				—				629				—				—				14,281				—				14,910
IV			—				—				—				—				—				—				—				—
Total		$	—			$	78,010			$	89,710			$	97,362			$	69,335			$	464,286			$	39,931			$	838,634
Construction
Category
I		$	1,496			$	26,153			$	123,102			$	9,185			$	683			$	5,695			$	34,718			$	201,032
II			—				—				—				—				—				—				—				—
III			—				—				—				454				8,155				5,972				—				14,581
IV			—				—				—				—				—				—				—				—
Total		$	1,496			$	26,153			$	123,102			$	9,639			$	8,838			$	11,667			$	34,718			$	215,613
Multi-family
Category
I		$	1,555			$	49,905			$	95,933			$	90,381			$	59,358			$	229,536			$	2,289			$	528,957
II			—				—				—				7,383				2,579				1,839				—				11,801
III			—				—				—				—				8,462				—				—				8,462
IV			—				—				—				—				—				—				—				—
Total		$	1,555			$	49,905			$	95,933			$	97,764			$	70,399			$	231,375			$	2,289			$	549,220
1-4 family
Category
I		$	125			$	15,302			$	4,187			$	6,694			$	2,316			$	4,273			$	15,553			$	48,450
II			—				—				—				—				—				—				—				—
III			—				—				—				—				—				—				—				—
IV			—				—				—				—				—				—				—				—
Total		$	125			$	15,302			$	4,187			$	6,694			$	2,316			$	4,273			$	15,553			$	48,450
Commercial and industrial
Category
I		$	73,877			$	242,252			$	194,867			$	83,208			$	44,570			$	44,832			$	432,587			$	1,116,193
II			—				2,588				5,557				848				1,438				1,756				44,463				56,650
III			687				4,222				5,124				5,840				1,235				4,652				11,006				32,766
IV			—				1,049				3,846				4,730				461				2,666				10,737				23,489
Total		$	74,564			$	250,111			$	209,394			$	94,626			$	47,704			$	53,906			$	498,793			$	1,229,098
Consumer and other
Category
I		$	6,700			$	6,662			$	4,902			$	5,987			$	2,660			$	13,656			$	5,623			$	46,190
II			—				—				—				—				—				—				—				—
III			—				—				—				—				—				—				—				—
IV			—				—				—				—				—				—				—				—
Total		$	6,700			$	6,662			$	4,902			$	5,987			$	2,660			$	13,656			$	5,623			$	46,190
Total Loans
Category
I		$	92,577			$	441,303			$	552,507			$	326,392			$	212,222			$	833,286			$	531,001			$	2,989,288
II			—				4,067				5,557				8,231				4,017				32,856				44,463				99,191
III			687				4,972				5,753				6,294				17,852				26,156				11,006				72,720
IV			—				1,049				3,846				4,730				461				3,233				10,737				24,056
Total		$	93,264			$	451,391			$	567,663			$	345,647			$	234,552			$	895,531			$	597,207			$	3,185,255


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

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:


		March 31, 2025
		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		$	—			$	—			$	—			$	—			$	258,050			$	258,050
Non-owner occupied			—				—				—				—				838,634				838,634
Construction			—				—				—				—				215,613				215,613
Multi-family			—				—				—				—				549,220				549,220
1-4 family			—				—				—				—				48,450				48,450
Commercial and industrial			1,552				825				17,186				19,563				1,209,535				1,229,098
Consumer and other			—				—				—				—				46,190				46,190
Total		$	1,552			$	825			$	17,186			$	19,563			$	3,165,692			$	3,185,255
Percent of portfolio			0.05	%			0.03	%			0.53	%			0.61	%			99.39	%			100.00	%


		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)
Total loans and leases
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	%

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:


		March 31, 2025
		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		$	567			$	—			$	—
Commercial real estate — non-owner occupied			—				—				—
Construction			—				—				—
Multi-family			—				—				—
1-4 family			—				—				—
Total commercial real estate			567				—				—
Commercial and industrial			10,003				13,486				—
Consumer and other			—				—				—
Total non-accrual loans and leases		$	10,570			$	13,486			$	—


		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			$	—


		March 31, 2025				December 31, 2024
Total non-accrual loans and leases to gross loans and leases			0.76	%			0.91	%
Allowance for credit losses to gross loans and leases			1.15	%			1.20
Allowance for credit losses to non-accrual loans and leases			151.79				131.38

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, 2025				December 31, 2024
		(In Thousands)
Inventory		$	—			$	—
Equipment			14,525				18,185
Real Estate			880				926
Accounts Receivable			6,113				6,570
Other			484				821
Total		$	22,002			$	26,502

Summary of Financial Difficulty and Modification Type

The following table presents the amortized cost basis of loans at March 31, 2025 that were both experiencing financial difficulty and modified during the three months ended March 31, 2025 and 2024, 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 Three Months Ended March 31, 2025
		Principal Forgiveness				Payment Delay				Term Extension				Interest Rate Reduction				Total				Total Class of Financing Receivable
		(In Thousands)
Commercial real estate		$	—			$	—			$	—			$	—			$	—				0.00	%
Commercial and industrial			—				—				151				—				151				0.01
Total		$	—			$	—			$	151			$	—			$	151				0.00	%


		For the Three Months Ended March 31, 2024
		Principal Forgiveness				Payment Delay				Term Extension				Interest Rate Reduction				Total				Total Class of Financing Receivable
		(In Thousands)
Commercial real estate		$	—			$	5,901			$	—			$	—			$	5,901				0.00	%
Commercial and industrial			—				1,107				—				—				1,107				0.10
Total		$	—			$	7,008			$	—			$	—			$	7,008				0.25	%

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 Three Months Ended March 31, 2025
		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			—				—				45				45
Total		$	—			$	—			$	45			$	45


		For the Three Months Ended March 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			—				72				382				454
Total		$	—			$	72			$	382			$	454

The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the three months ended March 31, 2025 and 2024:


		For the Three Months Ended March 31, 2025
(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			—				—				2.33				0.00
Total		$	—			$	—				2.33				0.00


		For the Three Months Ended March 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				0.00
Commercial and industrial			—				—				0.00				0.50
Total		$	—			$	—				0.00				0.50

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 three months ended March 31, 2025 and 2024 and were modified in the 12 months prior to that default to borrowers experience financial difficulty:

          
         For the Three Months Ended March 31, 2025

          
         Principal Forgiveness

         Payment Delay

         Term Extension

         Interest Rate Reduction

          
         (In Thousands)

Commercial real estate

$

—

$

—

$

—

$

—

Commercial and industrial

—

—

—

—

Total

$

—

$

—

$

—

$

—


		For the Three Months Ended March 31, 2024
		Principal Forgiveness				Payment Delay				Term Extension				Interest Rate Reduction
		(In Thousands)
Commercial real estate		$	—			$	—			$	—			$	—
Commercial and industrial			—				283				—				—
Total		$	—			$	283			$	—			$	—

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 March 31, 2025
		Owner Occupied				Non-Owner Occupied				Construction				Multi- Family				1-4 Family				Commercial and Industrial				Consumer and Other				Total
		(In Thousands)
Beginning balance		$	1,629			$	5,892			$	2,826			$	4,613			$	523			$	21,470			$	315			$	37,268
Charge-offs			—				—				—				—				—				(3,800	)			(10	)			(3,810	)
Recoveries			2				—				—				—				6				390				—				398
Net recoveries (charge-offs)			2				—				—				—				6				(3,410	)			(10	)			(3,412	)
Provision for credit losses			51				125				(335	)			860				(35	)			1,886				107				2,659
Ending balance		$	1,682			$	6,017			$	2,491			$	5,473			$	494			$	19,946			$	412			$	36,515
Components:
Allowance for credit losses on loans		$	1,667			$	5,961			$	1,900			$	5,453			$	464			$	19,421			$	370			$	35,236
Allowance for credit losses on unfunded credit commitments			15				56				591				20				30				525				42				1,279
Total ACL		$	1,682			$	6,017			$	2,491			$	5,473			$	494			$	19,946			$	412			$	36,515


		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

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, 2025
		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		$	1,667			$	5,961			$	1,900			$	5,453			$	464			$	12,998			$	370			$	28,813
Individually evaluated for credit loss			—				—				—				—				—				6,423				—				6,423
Total		$	1,667			$	5,961			$	1,900			$	5,453			$	464			$	19,421			$	370			$	35,236
Loans and lease receivables:
Collectively evaluated for credit losses		$	257,483			$	838,634			$	215,613			$	549,220			$	48,450			$	1,205,609			$	46,190			$	3,161,199
Individually evaluated for credit loss			567				—				—				—				—				23,489				—				24,056
Total		$	258,050			$	838,634			$	215,613			$	549,220			$	48,450			$	1,229,098			$	46,190			$	3,185,255


		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