Loans, Lease Receivables, and Allowance for Credit Losses

3 Months Ended

Mar. 31, 2025

Loans, Lease Receivables, and Allowance for Credit Losses

Note 5 — Loans, Lease Receivables, and Allowance for Credit Losses

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

Loans transferred to third parties consist of the guaranteed portions of SBA loans which the Corporation sold in the secondary market and participation interests in other, non-SBA originated loans. The total principal amount of the guaranteed portions of SBA loans sold during the three months ended March 31, 2025 and 2024, was $8.6 million and $2.1 million, respectively. Each of the transfers of these financial assets met the qualifications for sale accounting, and therefore all of the loans transferred during the three months ended March 31, 2025 and 2024, have been derecognized in the unaudited Consolidated Financial Statements. The guaranteed portions of SBA loans were transferred at their fair value and the related gain was recognized upon the transfer as non-interest income in the unaudited Consolidated Financial Statements. The total outstanding balance of sold SBA loans serviced by the Corporation at March 31, 2025, and December 31, 2024, was $86.5 million and $79.4 million, respectively.

The total principal amount of transferred participation interests in other, non-SBA originated loans during the three months ended March 31, 2025 and 2024, was $45.8 million and $34.8 million, respectively, all of which were treated as sales and derecognized under the applicable accounting guidance at the time of transfer. No gain or loss was recognized on participation interests in other, non-SBA originated loans as they were transferred at or near the date of loan origination and the payments received for servicing the portion of the loans participated represents adequate compensation. The total amount of loan participations purchased on the Corporation's unaudited Consolidated Balance Sheet as of March 31, 2025 and December 31, 2024 was $7.0 million and $5.3 million, respectively. The total outstanding balance of these transferred loans serviced by the Corporation at March 31, 2025 and December 31, 2024, was $386.0 million and $373.1 million, respectively. As of March 31, 2025 and December 31, 2024, the total amount of the Corporation’s retained ownership of these transferred loans was $443.2 million and $423.7 million, respectively. As of March 31, 2025 and December 31, 2024, the non-SBA originated participation portfolio contained no non-accrual loans. The Corporation does not share in the participant’s portion of any potential charge-offs.

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

Each credit is evaluated for proper risk rating upon origination, at the time of each subsequent renewal, upon receipt and evaluation of updated financial information from the Corporation’s borrowers, or as other circumstances dictate. The Corporation primarily uses a nine grade risk rating system to monitor the ongoing credit quality of its loans and leases. The risk rating grades follow a consistent definition and are then applied to specific loan types based on the nature of the loan. Each risk rating is determined based on various quantitative and qualitative factors and is subject to various levels of review and concurrence on the stated risk rating. In addition to its nine grade risk rating system, the Corporation groups loans into four loan and related risk categories which determine the level and nature of review by management.

Category I — Loans and leases in this category are performing in accordance with the terms of the contract and generally exhibit no immediate concerns regarding the security and viability of the underlying collateral, financial stability of the borrower, integrity or strength of the borrowers’ management team, or the industry in which the borrower operates. The Corporation monitors Category I loans and leases through payment performance, continued maintenance of its personal relationships with such borrowers, and continued review of such borrowers’ compliance with the terms of their respective agreements.

Category II — Loans and leases in this category are beginning to show signs of deterioration in one or more of the Corporation’s core underwriting criteria such as financial stability, management strength, industry trends, or collateral values. Management will place credits in this category to allow for proactive monitoring and resolution with the borrower to possibly mitigate the area of concern and prevent further deterioration or risk of loss to the Corporation. Category II loans are considered performing but are monitored frequently by the assigned business development officer and by asset quality review committees.

Category III — Loans and leases in this category are identified by management as warranting special attention. However, the balance in this category is not intended to represent the amount of adversely classified assets held by the Bank. Category III loans and leases generally exhibit undesirable characteristics, such as evidence of adverse financial trends and conditions, managerial problems, deteriorating economic conditions within the related industry, or evidence of adverse public filings and may exhibit collateral shortfall positions. Management continues to believe that it will collect all contractual principal and interest in accordance with the original terms of the contracts relating to the loans and leases in this category, and therefore Category III loans are considered performing with no specific reserves established for this category. Category III loans are monitored by management and asset quality review committees on a monthly basis.

Category IV — Loans and leases in this category are non-accrual loans. Management has determined that it is unlikely that the Bank will receive the contractual principal and interest in accordance with the original terms of the agreement. Non-accrual loans are individually evaluated to assess the need for the establishment of specific reserves or charge-offs. When analyzing the adequacy of collateral, the Corporation obtains external appraisals at least annually. External appraisals are obtained from the Corporation’s approved appraiser listing and are independently reviewed to monitor the quality of such appraisals. To the extent a collateral shortfall position is present, a specific reserve or charge-off will be recorded. Loans and leases in this category are monitored by management and asset quality review committees on a monthly basis.

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	%

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

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

Occasionally, the Corporation modifies loans to borrowers in financial distress by providing principal forgiveness, term extension, an other-than-insignificant payment delay or interest rate reduction. When principal forgiveness is provided, the amount of forgiveness is charged-off against the allowance for credit losses.

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

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	$	—	$	—

Allowance for Credit Losses

The ACL is an estimate of the expected credit losses on financial assets measured at amortized cost, which is measured using relevant information about past events, including historical credit loss experience on financial assets with similar risk characteristics, current conditions, and reasonable and supportable forecasts that affect the collectability of the remaining cash flows over the contractual term of the financial assets. A provision for credit losses is charged to operations based on management’s periodic evaluation of these and other pertinent factors as discussed within Note 1 – Nature of Operations and Summary of Significant Accounting Policies included in the Corporation’s Form 10-K for the year ended December 31, 2024.

Quantitative Considerations

The ACL is primarily calculated utilizing a Discounted Cash Flow (“DCF”) model. Key inputs and assumptions used in this model are discussed below:

•

Forecast model - For each portfolio segment, a Loss Driver Analysis (“LDA”) was performed in order to identify appropriate loss drivers and create a regression model for use in forecasting cash flows. The LDA analysis utilized peer FFIEC Call Report data for all DCF pools. The Corporation plans to update the LDA annually.

•

Probability of Default ("PD") – PD is the probability that an asset will be in default within a given time frame. The Corporation has defined default as when a charge-off has occurred, a loan goes to non-accrual status, or a loan is greater than 90 days past due. The forecast model is utilized to estimate PDs.

•

Loss Given Default ("LGD") – LGD is the percentage of the asset not expected to be collected due to default. The LGD is derived from using a method referred to as Frye Jacobs which uses industry data.

•

Prepayments and curtailments – Prepayments and curtailments are calculated based on the Corporation’s own data. This analysis is updated semi-annually.

•

Forecast and reversion – The Corporation has established a one-year reasonable and supportable forecast period with a one-year straight line reversion to the long-term historical average.

•

Economic forecast – The Corporation utilizes a third party to provide economic forecasts under various scenarios, which are assessed against economic indicators and management’s observations in the market. As of December 31, 2024, the Corporation selected a forecast which estimates unemployment between 4.12% and 4.20% and GDP growth change between 1.85% and 2.65% over the next four quarters. As of March 31, 2025, the Corporation selected a forecast which estimates unemployment between 4.12% and 4.54% and GDP growth change between 1.22% and 2.01% over the next four quarters. Following the forecast period, the model reverts to long-term averages over four quarters. Management believes that the resulting quantitative reserve appropriately balances economic indicators with identified risks.

Qualitative Considerations

In addition to the quantitative model, management considers the need for qualitative adjustment for risks not considered in the DCF. Factors that are considered by management in determining loan collectability and the appropriate level of the ACL are listed below:

•

The Corporation’s lending policies and procedures, including changes in lending strategies, underwriting standards and practices for collections, write-offs, and recoveries;

•

Actual and expected changes in international, national, regional, and local economic and business conditions and developments in which the Corporation operates that affect the collectability of financial assets;

•

The experience, ability, and depth of the Corporation’s lending, investment, collection, and other relevant management and staff;

•

The volume of past due financial assets, the volume of non-accrual loans and leases, and the volume and severity of adversely classified or graded assets;

•

The existence and effect of industry concentrations of credit;

•

The nature and volume of the portfolio segment or class;

•

The quality of the Corporation’s credit function; and

•

The effect of other external factors such as the regulatory, legal and technological environments, competition, and events such as natural disasters or pandemics.

ACL Activity

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

ACL Summary

Loans collectively evaluated for credit losses in the following tables include all performing loans at March 31, 2025 and December 31, 2024. Loans individually evaluated for credit losses include all non-accrual loans.

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