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Loans Receivable | 9 Months Ended
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Sep. 30, 2025
Receivables [Abstract] |
Loans Receivable | Note 4 – Loans Receivable Loans receivable, net at September 30, 2025 and December 31, 2024 were comprised of the following:
|  | September 30, 2025 |  |  | December 31, 2024 |
|  | (In thousands) |
Commercial real estate |  | $ | 1,353,039 |  |  | $ | 1,385,085 |
Commercial and industrial |  |  | 81,370 |  |  |  | 92,857 |
Construction |  |  | 203,004 |  |  |  | 257,169 |
Residential first-lien mortgage |  |  | 135,930 |  |  |  | 68,030 |
Home equity/consumer |  |  | 22,799 |  |  |  | 18,133 |
Total loans |  |  | 1,796,142 |  |  |  | 1,821,274 |
Deferred fees and costs |  |  | (2,355 | ) |  |  | (2,399 | )
Loans, net |  | $ | 1,793,787 |  |  | $ | 1,818,875 |
The Company purchased approximately $74.2 million in residential loans and $5.1 million in consumer loans during the nine months ended September 30, 2025. Besides the loans acquired in the acquisition of Cornerstone Bank in the third quarter of 2024, the Company did not purchase any loans during the year ended December 31, 2024. The Company uses the discounted cash flow methodology in determining the appropriate quantitative adjustments, which projects future losses, based on historical and peer loss data, as part of the allowance for credit losses (“ACL”) reserve. Qualitative adjustments include and consider changes in national, regional, and local economic and business conditions, an assessment of the lending environment, including underwriting standards, and other factors affecting credit quality. There were no significant changes to the Company’s ACL methodology for the quarter ended September 30, 2025. The following table presents the components of the allowance for credit losses:
|  | September 30, 2025 |  |  | December 31, 2024 |
|  | (In thousands) |
Allowance for credit losses - loans |  | $ | (20,441 | ) |  | $ | (23,657 | )
Allowance for credit losses - off balance sheet |  |  | (397 | ) |  |  | (361 | )
|  | $ | (20,838 | ) |  | $ | (24,018 | )
The following table presents nonaccrual loans by segment of the loan portfolio as of September 30, 2025 and December 31, 2024:
|  | September 30, 2025 |  |  | December 31, 2024 |
|  | With a Related Allowance |  |  | Without a Related Allowance |  |  | With a Related Allowance |  |  | Without a Related Allowance |
|  | (In thousands) |
Commercial real estate |  | $ | — |  |  | $ | 15,285 |  |  | $ | 18,502 |  |  | $ | 6,939 |
Commercial and industrial |  |  | — |  |  |  | 1,285 |  |  |  | 109 |  |  |  | 1,178 |
Construction |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Residential first-lien mortgage |  |  | — |  |  |  | 140 |  |  |  | — |  |  |  | 94 |
Home equity/consumer |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 19 |
Total nonaccrual loans |  | $ | — |  |  | $ | 16,710 |  |  | $ | 18,611 |  |  | $ | 8,230 |
Note 4 – Loans Receivable (continued) The calculation of the allowance for credit losses does not include any accrued interest receivable. The Company’s policy is to write off any interest not collected after 90 days or when the ability to collect principal and interest according to the contractual terms is in doubt. During the nine months ended September 30, 2025, the Company wrote off $933 thousand in accrued interest receivable for loans, compared to $692 thousand for the nine months ended September 30, 2024. Accrued interest receivable related to loans, at September 30, 2025, and December 31, 2024, was $7.6 million and $6.5 million, respectively. The performance and credit quality of the loan portfolio is also monitored by analyzing the age of the loan receivables by the length of time a recorded payment is past due. The following table presents the segments of the loan portfolio, summarized by the past due status as of September 30, 2025:
|  | 30-59 Days Past Due |  |  | 60-89 Days Past Due |  |  | >90 Days Past Due |  |  | Total Past Due |  |  | Current |  |  | Total Loans Receivable |  |  | Loans Receivable >90 Days and Accruing |
|  | (In thousands) |
Commercial real estate |  | $ | 6,026 |  |  | $ | 1,820 |  |  | $ | 15,285 |  |  | $ | 23,131 |  |  | $ | 1,329,908 |  |  | $ | 1,353,039 |  |  | $ | — |
Commercial and industrial |  |  | 248 |  |  |  | 16 |  |  |  | 1,285 |  |  |  | 1,549 |  |  |  | 79,821 |  |  |  | 81,370 |  |  |  | — |
Construction |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 203,004 |  |  |  | 203,004 |  |  |  | — |
Residential first-lien mortgage |  |  | 1,705 |  |  |  | 84 |  |  |  | 140 |  |  |  | 1,929 |  |  |  | 134,001 |  |  |  | 135,930 |  |  |  | — |
Home equity/consumer |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 22,799 |  |  |  | 22,799 |  |  |  | — |
Total |  | $ | 7,979 |  |  | $ | 1,920 |  |  | $ | 16,710 |  |  | $ | 26,609 |  |  | $ | 1,769,533 |  |  | $ | 1,796,142 |  |  | $ | — |
The following table presents the segments of the loan portfolio summarized by the past due status as of December 31, 2024:
|  | 30-59 Days Past Due |  |  | 60-89 Days Past Due |  |  | >90 Days Past Due |  |  | Total Past Due |  |  | Current |  |  | Total Loans Receivable |  |  | Loans Receivable >90 Days and Accruing |
|  | (In thousands) |
Commercial real estate |  | $ | — |  |  | $ | — |  |  | $ | 25,441 |  |  | $ | 25,441 |  |  | $ | 1,359,644 |  |  | $ | 1,385,085 |  |  | $ | — |
Commercial and industrial |  |  | 36 |  |  |  | — |  |  |  | 421 |  |  |  | 457 |  |  |  | 92,400 |  |  |  | 92,857 |  |  |  | 32 |
Construction |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 257,169 |  |  |  | 257,169 |  |  |  | — |
Residential first-lien mortgage |  |  | 700 |  |  |  | 94 |  |  |  | — |  |  |  | 794 |  |  |  | 67,236 |  |  |  | 68,030 |  |  |  | — |
Home equity/consumer |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 18,133 |  |  |  | 18,133 |  |  |  | — |
Total |  | $ | 736 |  |  | $ | 94 |  |  | $ | 25,862 |  |  | $ | 26,692 |  |  | $ | 1,794,582 |  |  | $ | 1,821,274 |  |  | $ | 32 |
The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation and current economic trends, among other factors. The Company evaluates risk ratings on an ongoing basis and assigns one of the following ratings: pass, special mention, substandard and doubtful. The Company engages a third party to review its assessment on a semiannual basis. The Company classifies residential and consumer loans as either performing or nonperforming based on payment status. Note 4 – Loans Receivable (continued) The following table summarizes total loans by year of origination, internally assigned credit grades and risk characteristics as of September 30, 2025. Gross charge-offs are included for the nine months ended September 30, 2025.
|  | 2025 |  |  | 2024 |  |  | 2023 |  |  | 2022 |  |  | 2021 |  |  | Prior |  |  | Revolving Loans |  |  | Total |
|  | (Dollars in thousands) |
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 57,432 |  |  | $ | 128,366 |  |  | $ | 164,147 |  |  | $ | 300,794 |  |  | $ | 130,646 |  |  | $ | 542,083 |  |  | $ | 5,856 |  |  | $ | 1,329,324 |
Special mention |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 8,429 |  |  |  | — |  |  |  | 8,429 |
Substandard |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 15,285 |  |  |  | — |  |  |  | 15,285 |
Total commercial real estate |  |  | 57,432 |  |  |  | 128,366 |  |  |  | 164,147 |  |  |  | 300,794 |  |  |  | 130,646 |  |  |  | 565,797 |  |  |  | 5,856 |  |  |  | 1,353,038 |
Current period gross charge-offs |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 9,950 |  |  |  |  |  |  | 9,950 |
Commercial and industrial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | — |
Pass |  |  | 7,608 |  |  |  | 2,910 |  |  |  | 4,228 |  |  |  | 16,491 |  |  |  | 11,355 |  |  |  | 8,788 |  |  |  | 20,735 |  |  |  | 72,115 |
Special mention |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 674 |  |  |  | — |  |  |  | 674 |
Substandard |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 8,581 |  |  |  | — |  |  |  | 8,581 |
Total commercial and industrial |  |  | 7,608 |  |  |  | 2,910 |  |  |  | 4,228 |  |  |  | 16,491 |  |  |  | 11,355 |  |  |  | 18,043 |  |  |  | 20,735 |  |  |  | 81,370 |
Current period gross charge-offs |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 83 |  |  |  |  |  |  | 83 |
Construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | — |
Pass |  |  | 5,000 |  |  |  | 5,124 |  |  |  | — |  |  |  | 9,290 |  |  |  | 31,349 |  |  |  | 12,181 |  |  |  | 139,912 |  |  |  | 202,856 |
Special mention |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Substandard |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 148 |  |  |  | — |  |  |  | 148 |
Total construction |  |  | 5,000 |  |  |  | 5,124 |  |  |  | — |  |  |  | 9,290 |  |  |  | 31,349 |  |  |  | 12,329 |  |  |  | 139,912 |  |  |  | 203,004 |
Current period gross charge-offs |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | — |  |  |  |  |  |  | — |
Residential first-lien mortgage |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | — |
Performing |  |  | 10,090 |  |  |  | 45,645 |  |  |  | 20,097 |  |  |  | 6,747 |  |  |  | 5,711 |  |  |  | 47,493 |  |  |  | — |  |  |  | 135,783 |
Nonperforming |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 147 |  |  |  | — |  |  |  | 147 |
Total residential first-lien mortgage |  |  | 10,090 |  |  |  | 45,645 |  |  |  | 20,097 |  |  |  | 6,747 |  |  |  | 5,711 |  |  |  | 47,640 |  |  |  | — |  |  |  | 135,930 |
Home equity/consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | — |
Performing |  |  | 6,578 |  |  |  | 1,061 |  |  |  | 923 |  |  |  | 1,348 |  |  |  | 1,056 |  |  |  | 470 |  |  |  | 11,308 |  |  |  | 22,744 |
Nonperforming |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 55 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 55 |
Total home equity/consumer |  |  | 6,578 |  |  |  | 1,061 |  |  |  | 923 |  |  |  | 1,403 |  |  |  | 1,056 |  |  |  | 470 |  |  |  | 11,308 |  |  |  | 22,799 |
Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  | 86,708 |  |  |  | 183,106 |  |  |  | 189,395 |  |  |  | 334,670 |  |  |  | 180,117 |  |  |  | 611,015 |  |  |  | 177,811 |  |  |  | 1,762,822 |
Special mention |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 9,103 |  |  |  | — |  |  |  | 9,103 |
Substandard |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 55 |  |  |  | — |  |  |  | 24,161 |  |  |  | — |  |  |  | 24,216 |
Total loans |  | $ | 86,708 |  |  | $ | 183,106 |  |  | $ | 189,395 |  |  | $ | 334,725 |  |  | $ | 180,117 |  |  | $ | 644,279 |  |  | $ | 177,811 |  |  | $ | 1,796,141 |
Note 4 – Loans Receivable (continued) The following table summarizes total loans by year of origination, internally assigned credit grades and risk characteristics as of December 31, 2024. Gross charge-offs are included for the year-ended December 31, 2024.
|  | 2024 |  |  | 2023 |  |  | 2022 |  |  | 2021 |  |  | 2020 |  |  | Prior |  |  | Revolving Loans |  |  | Total |
|  | (Dollars in thousands) |
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 143,453 |  |  | $ | 168,828 |  |  | $ | 309,379 |  |  | $ | 136,509 |  |  | $ | 58,755 |  |  | $ | 537,532 |  |  | $ | 2,600 |  |  | $ | 1,357,056 |
Special mention |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2,588 |  |  |  | — |  |  |  | 2,588 |
Substandard |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 6,938 |  |  |  | 18,503 |  |  |  | — |  |  |  | 25,441 |
Total commercial real estate |  |  | 143,453 |  |  |  | 168,828 |  |  |  | 309,379 |  |  |  | 136,509 |  |  |  | 65,693 |  |  |  | 558,623 |  |  |  | 2,600 |  |  |  | 1,385,085 |
Current period gross charge-offs |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 236 |  |  |  |  |  |  | 236 |
Commercial and industrial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  | — |  |  |  | 3,022 |  |  |  | 10,876 |  |  |  | 11,183 |  |  |  | — |  |  |  | 16,440 |  |  |  | 48,143 |  |  |  | 89,664 |
Special mention |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,906 |  |  |  | — |  |  |  | 1,906 |
Substandard |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,287 |  |  |  | — |  |  |  | 1,287 |
Total commercial and industrial |  |  | — |  |  |  | 3,022 |  |  |  | 10,876 |  |  |  | 11,183 |  |  |  | — |  |  |  | 19,633 |  |  |  | 48,143 |  |  |  | 92,857 |
Current period gross charge-offs |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 516 |  |  |  |  |  |  | 516 |
Construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  | 17,765 |  |  |  | 22,109 |  |  |  | 46,558 |  |  |  | 92,841 |  |  |  | 16,431 |  |  |  | 242 |  |  |  | 61,223 |  |  |  | 257,169 |
Special mention |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Substandard |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total construction |  |  | 17,765 |  |  |  | 22,109 |  |  |  | 46,558 |  |  |  | 92,841 |  |  |  | 16,431 |  |  |  | 242 |  |  |  | 61,223 |  |  |  | 257,169 |
Current period gross charge-offs |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | — |  |  |  |  |  |  | — |
Residential first-lien mortgage |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  |  | 596 |  |  |  | 1,895 |  |  |  | 6,789 |  |  |  | 6,134 |  |  |  | 2,860 |  |  |  | 49,662 |  |  |  | — |  |  |  | 67,936 |
Nonperforming |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 94 |  |  |  | — |  |  |  | 94 |
Total residential first-lien mortgage |  |  | 596 |  |  |  | 1,895 |  |  |  | 6,789 |  |  |  | 6,134 |  |  |  | 2,860 |  |  |  | 49,756 |  |  |  | — |  |  |  | 68,030 |
Home equity/consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  |  | 1,234 |  |  |  | 967 |  |  |  | 556 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 15,357 |  |  |  | 18,114 |
Nonperforming |  |  | — |  |  |  | — |  |  |  | 19 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 19 |
Total home equity/consumer |  |  | 1,234 |  |  |  | 967 |  |  |  | 575 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 15,357 |  |  |  | 18,133 |
Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  | 163,048 |  |  |  | 196,821 |  |  |  | 374,158 |  |  |  | 246,667 |  |  |  | 78,046 |  |  |  | 603,876 |  |  |  | 127,323 |  |  |  | 1,789,939 |
Special mention |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 4,494 |  |  |  | — |  |  |  | 4,494 |
Substandard |  |  | — |  |  |  | — |  |  |  | 19 |  |  |  | — |  |  |  | 6,938 |  |  |  | 19,884 |  |  |  | — |  |  |  | 26,841 |
Total loans |  | $ | 163,048 |  |  | $ | 196,821 |  |  | $ | 374,177 |  |  | $ | 246,667 |  |  | $ | 84,984 |  |  | $ | 628,254 |  |  | $ | 127,323 |  |  | $ | 1,821,274 |
Note 4 – Loans Receivable (continued) The following table presents the allowance for credit losses on loans receivable at and for the three months ended September 30, 2025:
|  | Commercial real estate |  |  | Commercial and industrial |  |  | Construction |  |  | Residential first-lien mortgage |  |  | Home equity/ consumer |  |  | Total |
|  | (In thousands) |
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 18,050 |  |  | $ | 1,016 |  |  | $ | 429 |  |  | $ | 1,358 |  |  | $ | 161 |  |  |  | 21,014 |
Provision (reversal)1 |  |  | (1,057 | ) |  |  | (62 | ) |  |  | (65 | ) |  |  | 514 |  |  |  | 12 |  |  |  | (658 | )
Charge-offs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Recoveries |  |  | 62 |  |  |  | 23 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 85 |
Total |  | $ | 17,055 |  |  | $ | 977 |  |  | $ | 364 |  |  | $ | 1,872 |  |  | $ | 173 |  |  | $ | 20,441 |
1. The reversal of credit losses on the Consolidated Statement of Income is $672 thousand comprising of a decrease of $658 thousand to the allowance for loan loss and a $14 thousand decrease to the reserve for unfunded liabilities. The following table presents the allowance for credit losses on loans receivable at and for the nine months ended September 30, 2025:
|  | Commercial real estate |  |  | Commercial and industrial |  |  | Construction |  |  | Residential first-lien mortgage |  |  | Home equity/ consumer |  |  | Total |
|  | (In thousands) |
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 20,821 |  |  | $ | 1,173 |  |  | $ | 609 |  |  | $ | 893 |  |  | $ | 161 |  |  | $ | 23,657 |
Provision (reversal)1 |  |  | 6,105 |  |  |  | (335 | ) |  |  | (245 | ) |  |  | 979 |  |  |  | 12 |  |  |  | 6,516 |
Charge-offs |  |  | (9,950 | ) |  |  | (83 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (10,033 | )
Recoveries |  |  | 79 |  |  |  | 222 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 301 |
Total |  | $ | 17,055 |  |  | $ | 977 |  |  | $ | 364 |  |  | $ | 1,872 |  |  | $ | 173 |  |  | $ | 20,441 |
1. The provision for credit losses on the Consolidated Statement of Income is $6.6 million comprising of an increase of $6.5 million increase to the allowance for loan loss and a $36 thousand increase to the reserve for unfunded liabilities. The following table presents the allowance for credit losses on loans receivable at and for the three months ended September 30, 2024:
|  | Commercial real estate |  |  | Commercial and industrial |  |  | Construction |  |  | Residential first-lien mortgage |  |  | Home equity/ consumer |  |  | Total |
|  | (In thousands) |
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 16,623 |  |  | $ | 377 |  |  | $ | 744 |  |  | $ | 660 |  |  | $ | 60 |  |  | $ | 18,464 |
Purchased non-credit deteriorated loans 1 |  |  | 2,106 |  |  |  | 15 |  |  |  | 546 |  |  |  | 271 |  |  |  | 214 |  |  |  | 3,152 |
Purchased credit deteriorated loans |  |  | 110 |  |  |  | 4 |  |  |  | 11 |  |  |  | 13 |  |  |  | 16 |  |  |  | 154 |
Provision (reversal)1 |  |  | 1,482 |  |  |  | 867 |  |  |  | (699 | ) |  |  | 8 |  |  |  | (122 | ) |  |  | 1,536 |
Charge-offs |  |  | 1 |  |  |  | (279 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (278 | )
Recoveries |  |  | 3 |  |  |  | 134 |  |  |  | 35 |  |  |  | — |  |  |  | — |  |  |  | 172 |
Total |  | $ | 20,325 |  |  | $ | 1,118 |  |  | $ | 637 |  |  | $ | 952 |  |  | $ | 168 |  |  | $ | 23,200 |
1. The provision for credit losses on the Consolidated Statement of Income is $4.6 million comprising of an increase of $3.2 million related to purchased non-credit deteriorated loans acquired, $1.5 million increase to the allowance for loan loss and a $87 thousand reduction to the reserve for unfunded liabilities. Note 4 – Loans Receivable (concluded) The following table presents the allowance for credit losses on loans receivable at and for the nine months ended September 30, 2024:
|  | Commercial real estate |  |  | Commercial and industrial |  |  | Construction |  |  | Residential first-lien mortgage |  |  | Home equity/ consumer |  |  | Total |
|  | (In thousands) |
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 16,047 |  |  | $ | 488 |  |  | $ | 1,145 |  |  | $ | 725 |  |  | $ | 87 |  |  | $ | 18,492 |
Purchased non-credit deteriorated loans 1 |  |  | 2,106 |  |  |  | 15 |  |  |  | 546 |  |  |  | 271 |  |  |  | 214 |  |  |  | 3,152 |
Purchased credit deteriorated loans |  |  | 110 |  |  |  | 4 |  |  |  | 11 |  |  |  | 13 |  |  |  | 16 |  |  |  | 154 |
Provision (reversal)1 |  |  | 2,219 |  |  |  | 756 |  |  |  | (1,100 | ) |  |  | (57 | ) |  |  | (149 | ) |  |  | 1,669 |
Charge-offs |  |  | (236 | ) |  |  | (409 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (645 | )
Recoveries |  |  | 79 |  |  |  | 264 |  |  |  | 35 |  |  |  | — |  |  |  | — |  |  |  | 378 |
Total |  | $ | 20,325 |  |  | $ | 1,118 |  |  | $ | 637 |  |  | $ | 952 |  |  | $ | 168 |  |  | $ | 23,200 |
1. The provision for credit losses on the Consolidated Statement of Income is $4.7 million comprising of an increase of $3.2 million related to purchased non-credit deteriorated loans acquired, $1.7 million increase to the allowance for loan loss and a $152 thousand reduction to the reserve for unfunded liabilities. As of September 30, 2025, the Company had nine loa ns totaling $16.7 m illion that were individually analyzed for potential credit loss, and all nine loans have real estate as credit support. As of December 31, 2024, the Company had nine loans totaling $26.8 million that were individually analyzed for potential credit loss and all the loans have real estate credit support. Occasionally, the Company will modify the contractual terms of loans to a borrower experiencing financial difficulties as a way to mitigate loss, proactively work with borrowers in financial difficulty, or to comply with regulations regarding the treatment of certain bankruptcy filing and discharge situations. Typically, such concessions may consist of a reduction in interest rate to a below market rate, taking into account the credit quality of the note, extension of additional credit base on receipt of adequate collateral, or a deferment or reduction of payments (principal or interest) which materially alters the Company’s position or significantly extends the note’s maturity date, such that the present value of cash flows to be received is materially less than those contractually established at the loan’s origination. When principal forgiveness is provided, the amount forgiven is charged off against the allowance for credit losses on loans. There were no modifications to borrowers with financial difficulties and no previously modified loans that defaulted during the nine months ended September 30, 2025, and the twelve-months ended December 31, 2024.

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