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Loans Receivable (Tables)

9 Months Ended

Sep. 30, 2024

Loans receivable, net at September 30, 2024 and December 31, 2023 were comprised of the following:


	September 30,			December 31,
	2024			2023
	(In thousands)
Commercial real estate	$	1,391,245		$	1,142,864
Commercial and industrial		93,782			50,961
Construction		258,332			310,187
Residential first-lien mortgage		70,389			38,040
Home equity/consumer		19,406			8,081

Total loans		1,833,154			1,550,133
Deferred fees and costs		(1,747	)		(1,798	)

Loans, net	$	1,831,407		$	1,548,335

Summary of components of allowance for credit losses

The following table presents the components of the allowance for credit losses:


	September 30, 2024			December 31, 2023
	(In thousands)
Allowance for credit losses - loans	$	(23,200	)	$	(18,492	)
Allowance for credit losses - off balance sheet		(464	)		(589	)

	$	(23,664	)	$	(19,081	)

Summary of nonaccrual loans by segment of loan portfolio

The following table presents nonaccrual loans by segment of the loan portfolio as of September 30, 2024 and December 31, 2023:


	September 30, 2024				December 31, 2023
	With a		Without a		With a		Without a
	Related		Related		Related		Related
	Allowance		Allowance		Allowance		Allowance
	(In thousands)
Commercial real estate	$	—	$	1,279	$	—	$	4,485
Commercial and industrial		28		548		—		2,116
Construction		—		—		—		—
Residential first-lien mortgage		—		479		—		107
Home equity/consumer		—		—		—		—

Total nonaccrual loans	$	28	$	2,306	$	—	$	6,708

Summary of performance and credit quality of loan portfolio

The following table presents the segments of the loan portfolio, summarized by the past due status as of September 30, 2024:


													Loans
	30-59		60-89		>90								Receivable
	Days		Days		Days		Total				Total		>90 Days
	Past		Past		Past		Past				Loans		and
	Due		Due		Due		Due		Current		Receivable		Accruing
	(In thousands)
Commercial real estate	$	24,054	$	4,391	$	1,279	$	29,724	$	1,361,521	$	1,391,245	$	—
Commercial and industrial		401		2,222		576		3,199		90,583		93,782		—
Construction		—		—		—		—		258,332		258,332		—
Residential first-lien mortgage		400		—		479		879		69,510		70,389		—
Home equity/consumer		67		—		—		67		19,339		19,406		—

Total	$	24,922	$	6,613	$	2,334	$	33,869	$	1,799,285	$	1,833,154	$	—

The following table presents the segments of the loan portfolio summarized by the past due status as of December 31, 2023:


													Loans
	30-59		60-89		>90								Receivable
	Days		Days		Days		Total				Total		>90 Days
	Past		Past		Past		Past				Loans		and
	Due		Due		Due		Due		Current		Receivable		Accruing
	(In thousands)
Commercial real estate	$	159	$	—	$	4,485	$	4,644	$	1,138,220	$	1,142,864	$	—
Commercial and industrial		303		—		2,116		2,419		48,542		50,961		—
Construction		—		—		—		—		310,187		310,187		—
Residential first-lien mortgage		—		—		107		107		37,933		38,040		—
Home equity/consumer		29		—		—		29		8,052		8,081		—

Total	$	491	$	—	$	6,708	$	7,199	$	1,542,934	$	1,550,133	$	—

Summary of loans by year of origination, internally assigned credit grades and risk characteristics

The following table summarizes total loans by year of origination, internally assigned credit grades and risk characteristics as of September 30, 2024. Gross charge-offs are included for the nine months ended September 30, 2024.


	2024		2023		2022		2021		2020		Prior		Revolving Loans		Total
	(Dollars in thousands)
Commercial real estate
Pass	$	112,403	$	168,841	$	305,533	$	135,130	$	75,353	$	578,291	$	7,551	$	1,383,102
Special mention		—		—		—		—		—		6,864		—		6,864
Substandard		—		—		—		—		—		1,279		—		1,279

Total commercial real estate		112,403		168,841		305,533		135,130		75,353		586,434		7,551		1,391,245
Current period gross charge-offs												237				237
Commercial and industrial
Pass		14,447		6,448		7,909		10,612		269		18,461		21,622		79,768
Special mention		—		—		—		—		—		1,334		—		1,334
Substandard		—		—		—		—		—		12,680		—		12,680

Total commercial and industrial		14,447		6,448		7,909		10,612		269		32,475		21,622		93,782
Current period gross charge-offs												408				408
Construction
Pass		6,057		8,826		30,385		59,502		6,196		104		147,114		258,184
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		148		—		148

Total construction		6,057		8,826		30,385		59,502		6,196		252		147,114		258,332
Residential first-lien mortgage
Performing		607		1,909		6,004		5,654		3,003		52,733		—		69,910
Nonperforming		—		—		—		—		—		479		—		479

Total residential first-lien mortgage		607		1,909		6,004		5,654		3,003		53,212		—		70,389
Home equity/consumer
Performing		1,123		1,005		1,045		277		81		1,602		14,251		19,384
Nonperforming		—		—		—		—		—		22		—		22

Total home equity/consumer		1,123		1,005		1,045		277		81		1,624		14,251		19,406
Total
Pass		134,637		187,029		350,876		211,175		84,902		651,191		190,538		1,810,348
Special mention		—		—		—		—		—		8,198		—		8,198
Substandard		—		—		—		—		—		14,608		—		14,608

Total loans	$	134,637	$	187,029	$	350,876	$	211,175	$	84,902	$	673,997	$	190,538	$	1,833,154

The following table summarizes total loans by year of origination, internally assigned credit grades and risk characteristics as of December 31, 2023. Gross charge-offs are included for the year-ended December 31, 2023.


	2023		2022		2021		2020		2019		Prior		Revolving Loans		Total
	(Dollars in thousands)
Commercial real estate
Pass	$	132,834	$	233,436	$	116,836	$	53,574	$	175,991	$	417,417	$	5,551	$	1,135,639
Special mention		—		—		—		—		—		2,740		—		2,740
Substandard		—		—		—		—		—		4,485		—		4,485

Total commercial real estate		132,834		233,436		116,836		53,574		175,991		424,642		5,551		1,142,864

Current period gross charge-offs												1,718				1,718
Commercial and industrial
Pass		2,098		2,304		11,925		1,962		1,133		13,954		15,045		48,421
Special mention		—		—		—		—		—		500		—		500
Substandard		—		—		—		—		—		2,040		—		2,040

Total commercial and industrial		2,098		2,304		11,925		1,962		1,133		16,494		15,045		50,961

Current period gross charge-offs												55				55
Construction
Pass		5,832		18,379		91,774		19,216		—		8,484		166,502		310,187
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—

Total construction		5,832		18,379		91,774		19,216		—		8,484		166,502		310,187

Current period gross charge-offs												148				148
Residential first-lien mortgage
Performing		—		979		4,792		2,839		1,545		27,778		—		37,933
Nonperforming		—		—		—		—		—		107		—		107

Total residential first-lien mortgage		—		979		4,792		2,839		1,545		27,885		—		38,040

Current period gross charge-offs												2				2
Home equity/consumer
Performing		1,153		1,016		1,172		—		—		1,606		3,134		8,081
Nonperforming		—		—		—		—		—		—		—		—

Total home equity/consumer		1,153		1,016		1,172		—		—		1,606		3,134		8,081

Total
Pass/performing		141,917		256,114		226,499		77,591		178,669		469,239		190,232		1,540,261
Special mention		—		—		—		—		—		3,240		—		3,240
Substandard /nonperforming		—		—		—		—		—		6,632		—		6,632

Total loans	$	141,917	$	256,114	$	226,499	$	77,591	$	178,669	$	479,111	$	190,232	$	1,550,133

Summary of allowance for credit losses on loans receivables

The following table presents the allowance for credit losses on loans receivable at and for the three months ended September 30, 2024:


			Commercial						Residential
	Commercial		and						first-lien		Home equity/
	real estate		industrial			Construction			mortgage		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

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.

The following table presents the allowance for credit losses on loans receivable at and for the nine months ended September 30, 2024:


				Commercial						Residential
	Commercial			and						first-lien			Home equity/
	real estate			industrial			Construction			mortgage			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

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.

The following table presents the allowance for credit losses on loans receivable at and for the three months ended September 30, 2023:


			Commercial						Residential
	Commercial		and						first-lien		Home equity/
	real estate		industrial			Construction			mortgage		consumer			Total
	(In thousands)
Allowance for loan losses:
Beginning balance	$	12,123	$	407		$	4,529		$	661	$	250		$	17,970
Provision (reversal) 1		3,301		(81	)		(3,219	)		160		(161	)		—
Charge-offs		—		—			—			—		—			—
Recoveries		4		18			—			—		—			22

Total	$	15,428	$	344		$	1,310		$	821	$	89		$	17,992

1	The reversal of credit losses on the Consolidated Statement of Income is $182 thousand comprising of a $182 reduction 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, 2023:


				Commercial						Residential
	Commercial			and						first-lien			Home equity/
	real estate			industrial			Construction			mortgage			consumer			Unallocated			Total
	(In thousands)
Allowance for loan losses:
Beginning balance	$	8,654		$	271		$	6,289		$	236		$	45		$	966		$	16,461
CECL adoption		1,384			(73	)		(1,269	)		428			195			(966	)		(301	)
CECL day 1 provision		1,586			105			—			16			—			—			1,707
Purchased credit deteriorated loans		499			102			—			—			—			—			601
Provision (reversal) 1		4,994			(84	)		(3,562	)		143			(151	)		—			1,340
Charge-offs		(1,718	)		—			(148	)		(2	)		—			—			(1,868	)
Recoveries		29			23			—			—			—			—			52

Total	$	15,428		$	344		$	1,310		$	821		$	89		$	—		$	17,992

1	The provision for credit losses on the Consolidated Statement of Income is $2.5 million comprising of $1.7 million related to non-PCD loans acquired, a $1.3 million increase to the allowance for credit losses on loans and a $501 thousand reduction to the reserve for unfunded liabilities.