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Note 5 - Loans

12 Months Ended

Dec. 31, 2023

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

5. Loans

Most of the Company’s business activities are with clients located in the high-density Asian-populated areas of Southern and Northern California; New York City, New York; Houston and Dallas, Texas; Seattle, Washington; Boston, Massachusetts; Chicago, Illinois; Edison, New Jersey; Rockville, Maryland; and Las Vegas, Nevada. The Company also has loan clients in Hong Kong. The Company has no specific industry concentration, and generally its loans, when secured, are secured by real property or other collateral of the borrowers. The Company generally expects loans to be paid off from the operating profits of the borrowers, from refinancing by another lender, or through sale by the borrowers of the secured collateral.

The following table presents the composition of the Company’s loans as of December 31, 2023, and 2022, were as follows:

	*As of December 31,*
	*2023*			*2022*
	(In thousands)
Loans:
Commercial loans	$	3,305,048		$	3,318,778
Construction loans		422,647			559,372
Commercial real estate loans		9,729,581			8,793,685
Residential mortgage loans		5,838,747			5,252,952
Equity lines		245,919			324,548
Installment and other loans		6,198			4,689
Gross loans		19,548,140			18,254,024
Less:
Allowance for loan losses		(154,562	)		(146,485	)
Unamortized deferred loan fees		(10,720	)		(6,641	)
Total loans, net	$	19,382,858		$	18,100,898

The Company pledged real estate loans of $14.15 billion as of December 31, 2023, and $13.07 billion as of December 31, 2022, to the Federal Home Loan Bank of San Francisco under its blanket lien pledging program. The Company pledged commercial loans of $388 thousand as of December 31, 2023, and $583 thousand as of December 31, 2022, to the Federal Reserve Bank’s Discount Window under the Borrower-in-Custody program.

Loans serviced for others as of December 31, 2023, totaled $203.0 million and were comprised of $70.7 million of residential mortgages, $76.1 million of commercial real estate loans, $11.8 million of construction loans, and $44.4 million of commercial loans. As of December 31, 2022, loans serviced for others, totaled $181.4 million and were comprised of $80.2 million of residential mortgages, $51.6 million of commercial real estate loans, $2.5 million of construction loans and $47.1 million of commercial loans.

The Company has entered into transactions with its directors, executive officers, or principal holders of its equity securities, or the associates of such persons (“Related Parties”). All loans to Related Parties were current as of December 31, 2023 and 2022. An analysis of the activity with respect to loans to Related Parties for the years indicated is as follows:

	*December 31,*
	*2023*			*2022*
	(In thousands)
Balance at beginning of year	$	33,217		$	38,532
Additional loans made		20,160			25,050
Payment received		(7,670	)		(30,365	)
Balance at end of year	$	45,707		$	33,217

As of December 31, 2023, recorded investment in non-accrual loans totaled $66.7 million compared to $68.9 million as of December 31, 2022. The average balance of non-accrual loans was $71.8 million and $71.4 million as of December 31, 2023 and 2022, respectively. Interest recognized on non-accrual loans totaled $321 thousand, $435 thousand and $1.1 million for the years ended December 31, 2023, 2022 and 2021. For non-accrual loans, the amounts previously charged-off represent 15.8% of the contractual balances for non-accrual loans as of December 31, 2023 and 14.1% as of December 31, 2022.

The following tables present the average balance and interest income recognized on non-accrual loans for the periods indicated:

	*For the year ended December 31, 2023*
	*Average Recorded Investment*		*Interest Income Recognized*
	(In thousands)
Commercial loans	$	18,008	$	3
Construction loans		6,336		—
Commercial real estate loans		35,742		318
Residential mortgage and equity lines		11,743		—
Installment and other loans		1		—
Total	$	71,830	$	321


	*Average Recorded Investment*		*Interest Income Recognized*

Commercial loans	$	28,109	$	4
Construction loans		28,983		—
Commercial real estate loans		14,251		405
Residential mortgage and equity lines		28		26
Total	$	71,371	$	435

The following table presents non-accrual loans and the related allowance as of December 31, 2023 and 2022:

	*As of December 31, 2023*
	*Unpaid Principal Balance*		*Recorded Investment*		*Allowance*
	(In thousands)
With no allocated allowance:
Commercial loans	$	26,310	$	14,404	$	—
Construction loans		7,736		7,736		—
Commercial real estate loans		41,725		32,030		—
Residential mortgage and equity lines		12,957		12,511		—
Installment and other loans		—		—		—
Subtotal	$	88,728	$	66,681	$	—
With allocated allowance:
Commercial loans	$	—	$	—	$	—
Commercial real estate loans		—		—		—
Residential mortgage and equity lines		—		—		—
Subtotal	$	—	$	—	$	—
Total non-accrual loans	$	88,728	$	66,681	$	—

	*As of December 31, 2022*
	*Unpaid Principal Balance*		*Recorded Investment*		*Allowance*
	(In thousands)
With no allocated allowance:
Commercial loans	$	27,341	$	12,949	$	—
Commercial real estate loans		37,697		32,205		—
Residential mortgage and equity lines		9,626		8,978
Installment and other loans		9		8		—
Subtotal	$	74,673	$	54,140	$	—
With allocated allowance:
Commercial loans	$	14,643	$	12,823	$	3,734
Commercial real estate loans		1,896		1,891		207
Subtotal	$	16,539	$	14,714	$	3,941
Total non-accrual loans	$	91,212	$	68,854	$	3,941

The following table is a summary of non-accrual loans as of December 31, 2023, 2022, and 2021 and the related net interest foregone for the years then ended:

	*As of December 31,*
	*2023*		*2022*		*2021*
	(In thousands)
Non-accrual portfolio loans	$	66,681	$	68,854	$	65,846
Contractual interest due		6,270		4,620		4,032
Interest recognized		321		435		1,074
Net interest foregone	$	5,949	$	4,185	$	2,958

The following tables present the aging of the loan portfolio by type as of December 31, 2023, and December 31, 2022:

	*As of December 31, 2023*
	*30-59 Days Past Due*		*60-89 Days Past Due*		*90 Days or More Past Due*		*Non-accrual Loans*		*Total Past Due*		*Loans Not Past Due*		*Total*
Type of Loans:	(In thousands)
Commercial loans	$	11,771	$	7,770	$	508	$	14,404	$	34,453	$	3,270,595	$	3,305,048
Construction loans		25,389		22,998		—		7,736		56,123		366,524		422,647
Commercial real estate loans		27,900		1,503		6,649		32,030		68,082		9,661,499		9,729,581
Residential mortgage loans and equity lines		59,606		6,670		—		12,511		78,787		6,005,879		6,084,666
Installment and other loans		32		—		—		—		32		6,166		6,198
Total loans	$	124,698	$	38,941	$	7,157	$	66,681	$	237,477	$	19,310,663	$	19,548,140

	*As of December 31, 2022*
	*30-59 Days Past Due*		*60-89 Days Past Due*		*90 Days or More Past Due*		*Non-accrual Loans*		*Total Past Due*		*Loans Not Past Due*		*Total*
Type of Loans:	(In thousands)
Commercial loans	$	8,192	$	3,235	$	10,208	$	25,772	$	47,407	$	3,271,371	$	3,318,778
Construction loans		—		—		—		—		—		559,372		559,372
Commercial real estate loans		25,772		—		1,372		34,096		61,240		8,732,445		8,793,685
Residential mortgage loans and equity lines		47,043		5,685		—		8,978		61,706		5,515,794		5,577,500
Installment and other loans		5		1		—		8		14		4,675		4,689
Total loans	$	81,012	$	8,921	$	11,580	$	68,854	$	170,367	$	18,083,657	$	18,254,024

The Company has adopted ASU 2022-02, “Financial Instruments – Troubled Debt Restructurings and Vintage Disclosures” effective January 1, 2023. As part of the adoption, the Company has elected to apply the pending content prospectively and the practical expedient to exclude the accrued interest receivable balance from the disclosed amortized cost basis of loan modifications to debtors experiencing financial difficulty, consistent with our ACL approach discussed further below in this footnote.

Under the new guidance on loan modifications made to borrowers experiencing financial difficulty, when a loan held for investment is modified and is considered to be a continuation of the original loan, the Company uses the post-modification contractual rate to derive the effective interest rate when using a discounted cash flow method to determine the allowance for credit loss.

The amendments in this new guidance eliminate the previous TDR recognition and measurement guidance and, instead, require that an entity evaluate whether the modification represents a new loan or a continuation of an existing loan.

Under the prior TDR guidance, a TDR is a formal modification of the terms of a loan when the lender, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower. The concessions may be granted in various forms, including a change in the stated interest rate, a reduction in the loan balance or accrued interest, or an extension of the maturity date. Although these loan modifications were considered TDRs, TDR loans that had, pursuant to the Bank’s policy, performed under the restructured terms and had demonstrated sustained performance under the modified terms for six months were returned to accrual status. The sustained performance considered by management pursuant to its policy included the periods prior to the modification if the prior performance met or exceeded the modified terms. This would include cash paid by the borrower prior to the restructuring to set up interest reserves. Loans classified as TDRs were reported as individually evaluated loans.

The allowance for credit loss on a TDR was measured using the same method as all other loans held for investment, except when the value of a concession could not be measured using a method other than the discounted cash flow method. Under the prior guidance when the value of a concession was measured using the discounted cash flow method, the allowance for credit loss was determined by discounting the expected future cash flows at the original interest rate of the loan.

Upon adoption of ASU 2022-02, the Company establishes a specific reserve for individually evaluated loans that do not share similar risk characteristics with the loans included in the quantitative baseline. These individually evaluated loans are removed from the pooling approach for the quantitative baseline, and include non-accrual loans, loan modifications made to borrowers experiencing financial difficulty, and other loans as deemed appropriate by management. The Company applies the loan refinancing and restructuring guidance provided in ASU 2022-02 to determine whether a modification made to a borrower results in a new loan or a continuation of an existing loan.

If economic conditions or other factors worsen relative to the assumptions the Company utilized, the expected loan losses will increase accordingly in future periods.

As of December 31, 2022, under the prior TDR guidance, there was accruing TDRs of $15.1 million and non-accrual TDRs of $6.3 million. As of December 31, 2022, the Company allocated zero in reserves to accruing TDRs and $427 thousand to non-accrual TDRs.

The following table presents TDRs that were modified during 2022, their specific reserve as of December 31, 2022, and charge-offs during 2022:

	*Loans Modified as TDRs During the Year Ended December 31, 2022*
	*No. of Contracts*		*Pre-Modification Outstanding Recorded Investment*		*Post-Modification Outstanding Recorded Investment*		*Specific Reserve*		*Charge-offs*
	(Dollars in thousands)

Commercial loans		4	$	6,115	$	6,115	$	427	$	—
Commercial real estate loans		3		3,676		3,669		—		—
Residential mortgage and equity lines		8		2,189		2,162		—		—
Total		15	$	11,980	$	11,946	$	427	$	—

The following table presents TDRs that were modified during 2021, their specific reserve as of December 31, 2021, and charge-offs during 2021:

	*Loans Modified as TDRs During the Year Ended December 31, 2021*
	No. of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Specific Reserve ⁽¹⁾		*Charge-off*
	(Dollars in thousands)

Commercial loans		3	$	2,150	$	2,150	$	—	$	—
Residential mortgage and equity lines		2		3		3		—		—
Total		5	$	2,153	$	2,153	$	—	$	—

Modifications of the loan terms in the three and twelve months ended December 31, 2023, were in the form of payment deferrals, term extensions, and interest rate reductions, or a combination thereof.

The following table presents the amortized cost of loans modified to borrowers experiencing financial difficulty disaggregated by class of financing receivable and type of concession granted and the financial effects of the modifications for the twelve months ended December 31, 2023 by loan class and modification type:

										Financial Effects of Loan Modifications
	Payment Delay		Combo-Rate Reduction/Term Extension/Payment Delay		Total		Modification as a % of Loan Class			Weighted-Average Rate Reduction			Weighted-Average Term Extension (in Years)		Weighted-Average Payment Deferral (in Years)

Loan Type
Commercial loans	$	—	$	2,650	$	2,650		0.08	%		1.10	%		2.2		0.9
Residential mortgage loans		222		—		222		0.00	%		0.10	%		0.0		2.0
Total	$	222	$	2,650	$	2,872

The Company considers a loan to be in payment default once it is 60 to 90 days contractually past due under the modified terms. The Company tracks the performance of modified loans. A modified loan may become delinquent and may result in a payment default subsequent to modification. There were no loans that received a modification for the twelve months ended December 31, 2023 that subsequently defaulted.

The following table presents the performance of loans that were modified during the twelve months ended December 31, 2023.

	*Twelve Months Ended December 31, 2023*
	*Current*		*30–89 Days Past Due*		*90+ Days Past Due*		*Total*
	(In thousands)
Loan Type
Commercial loans	$	2,650	$	—	$	—	$	2,650
Residential mortgage loans		222		—		—		222
Total	$	2,872	$	—	$	—	$	2,872

A summary of TDRs by type of concession and by type of loans as of December 31, 2022, is set forth in the table below:

	*December 31, 2022*
Accruing TDRs	*Payment Deferral*		*Rate Reduction*		*Rate Reduction and Payment Deferral*		*Total*
	(In thousands)
Commercial loans	$	2,588	$	—	$	—	$	2,588
Commercial real estate loans		2,791		—		5,855		8,646
Residential mortgage loans		2,181		445		1,285		3,911
Total accruing TDRs	$	7,560	$	445	$	7,140	$	15,145

	*December 31, 2022*
Non-accrual TDRs	*Payment Deferral*		*Rate Reduction*		*Rate Reduction and Payment Deferral*		*Total*
	(In thousands)
Commercial loans	$	3,629	$	—	$	—	$	3,629
Commercial real estate loans		1,098		—		—		1,098
Residential mortgage loans		1,621		—		—		1,621
Total non-accrual TDRs	$	6,348	$	—	$	—	$	6,348

Modifications of the loan terms in the twelve months ended December 31, 2022, were in the form of extensions of maturity dates, which ranged generally from three to twelve months from the modification date.

We expect that the TDRs on accruing status as of December 31, 2022, which were all performing in accordance with their restructured terms, will continue to comply with the restructured terms because of the reduced principal or interest payments on these loans.

The Company considers a loan to be in payment default once it is 60 to 90 days contractually past due under the modified terms. The Company did not have any loans that were modified as a TDR during the previous twelve months and which had subsequently defaulted as of December 31, 2022.

Under the Company’s internal underwriting policy, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification in order to determine whether a borrower is experiencing financial difficulty.

As of December 31, 2023, there were no commitments to lend additional funds to borrowers experiencing financial difficulty and whose loans were modified.

As part of the on-going monitoring of the credit quality of our loan portfolio, the Company utilizes a risk grading matrix to assign a risk rating to each loan. Loans are risk rated based on analysis of the current state of the borrower’s credit quality. The analysis of credit quality includes a review of sources of repayment, the borrower’s current financial and liquidity status and other relevant information. The risk rating categories can be generally described by the following grouping for non-homogeneous loans:

	●	Pass/Watch – These loans range from minimal credit risk to higher than average, but still acceptable, credit risk. The loans have sufficient sources of repayment to repay the loans in full, in accordance with all the terms and conditions and remains currently well protected by collateral values.

	●	Special Mention – Borrower is fundamentally sound, and the loan is currently protected but adverse trends are apparent that, if not corrected, may affect ability to repay. Primary source of loan repayment remains viable but there is increasing reliance on collateral or guarantor support.

●

Substandard – These loans are inadequately protected by current sound worth, paying capacity or collateral. Well-defined weaknesses exist that could jeopardize repayment of debt. Loss may not be imminent, but if weaknesses are not corrected, there is a good possibility of some loss.

●

Doubtful – The possibility of loss is extremely high, but due to identifiable and important pending events (which may strengthen the loan), a loss classification is deferred until the situation is better defined.

●

Loss – These loans are considered uncollectible and of such little value that to continue to carry the loans as an active asset is no longer warranted.

The following table summarizes the Company’s loan held for investment as of December 31, 2023 and 2022, presented by loan portfolio segments, internal risk ratings and vintage year. The vintage year is the year of origination, renewal or major modification:

	*Loans Amortized Cost Basis by Origination Year*
December 31, 2023	*2023*		*2022*		*2021*		*2020*		*2019*		*Prior*		*Revolving Loans*		*Revolving Converted to Term Loans*		*Total*
	(In thousands)
Commercial loans
Pass/Watch	$	381,705	$	323,939	$	326,650	$	96,725	$	75,281	$	136,162	$	1,775,162	$	8,308	$	3,123,932
Special Mention		4,488		4,875		8,559		23,380		—		—		75,419		—		116,721
Substandard		1,752		653		9,895		2,462		763		5,775		40,131		116		61,547
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	387,945	$	329,467	$	345,104	$	122,567	$	76,044	$	141,937	$	1,890,712	$	8,424	$	3,302,200

YTD gross write-offs	$	—	$	977	$	1,312	$	384	$	3,672	$	6,044	$	1,520	$	—	$	13,909

Construction loans
Pass/Watch	$	29,550	$	131,984	$	153,977	$	19,461	$	13,298	$	3,131	$	—	$	—	$	351,401
Special Mention		1,911		—		11,707		25,389		—		22,998		—		—		62,005
Substandard		—		—		—		—		7,736		—		—		—		7,736
Total	$	31,461	$	131,984	$	165,684	$	44,850	$	21,034	$	26,129	$	—	$	—	$	421,142

YTD gross write-offs	$	—	$	—	$	—	$	—	$	—	$	4,221	$	—	$	—	$	4,221

Commercial real estate loans
Pass/Watch	$	2,121,489	$	1,959,239	$	1,585,010	$	887,508	$	1,019,952	$	1,726,015	$	184,601	$	—	$	9,483,814
Special Mention		37,604		18,910		38,405		3,499		10,303		17,210		1,384		—		127,315
Substandard		—		11,870		12,170		2,965		17,293		66,205		—		—		110,503
Total	$	2,159,093	$	1,990,019	$	1,635,585	$	893,972	$	1,047,548	$	1,809,430	$	185,985	$	—	$	9,721,632

YTD gross write-offs	$	—	$	—	$	208	$	—	$	969	$	4,164	$	—	$	—	$	5,341
Residential mortgage loans
Pass/Watch	$	1,140,998	$	1,128,526	$	902,613	$	524,315	$	541,005	$	1,583,118	$	—	$	—	$	5,820,575
Special Mention		—		—		—		33		—		1,619		—		—		1,652
Substandard		7		652		3,325		2,577		1,334		9,311		—		—		17,206
Total	$	1,141,005	$	1,129,178	$	905,938	$	526,925	$	542,339	$	1,594,048	$	—	$	—	$	5,839,433

YTD gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Equity lines
Pass/Watch	$	—	$	98	$	—	$	—	$	—	$	—	$	227,502	$	16,628	$	244,228
Special Mention		—		3		—		—		—		—		—		—		3
Substandard		—		—		—		—		—		—		2,511		173		2,684
Total	$	—	$	101	$	—	$	—	$	—	$	—	$	230,013	$	16,801	$	246,915

YTD gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Installment and other loans
Pass/Watch	$	5,114	$	981	$	3	$	—	$	—	$	—	$	—	$	—	$	6,098
Total	$	5,114	$	981	$	3	$	—	$	—	$	—	$	—	$	—	$	6,098

YTD gross write-offs	$	—	$	15	$	—	$	—	$	—	$	—	$	—	$	—	$	15
Total loans	$	3,724,618	$	3,581,730	$	3,052,314	$	1,588,314	$	1,686,965	$	3,571,544	$	2,306,710	$	25,225	$	19,537,420
Total YTD gross write-offs	$	—	$	992	$	1,520	$	384	$	4,641	$	14,429	$	1,520	$	—	$	23,486

	*Loans Amortized Cost Basis by Origination Year*
December 31, 2022	*2022*		*2021*		*2020*		*2019*		*2018*		*Prior*		*Revolving Loans*		*Revolving Converted to Term Loans*		*Total*
	(In thousands)
Commercial loans
Pass/Watch	$	488,748	$	446,647	$	180,226	$	119,355	$	107,896	$	106,649	$	1,753,509	$	6,560	$	3,209,590
Special Mention		1,212		4,696		2,818		68		308		4,354		41,110		—		54,566
Substandard		25		12,750		342		4,859		2,766		6,985		22,084		133		49,944
Doubtful		—		—		—		1,504		2,185		—		234		—		3,923
Total	$	489,985	$	464,093	$	183,386	$	125,786	$	113,155	$	117,988	$	1,816,937	$	6,693	$	3,318,023

YTD gross write-offs	$	96	$	587	$	120	$	71	$	1,786	$	360	$	202	$	—	$	3,222

Construction loans
Pass/Watch	$	99,798	$	264,197	$	113,312	$	20,479	$	3,067	$	—	$	—	$	—	$	500,853
Special Mention		—		360		9,449		11,643		22,945		—		—		—		44,397
Substandard		—		—		—		1,736		9,309		—		—		—		11,045
Total	$	99,798	$	264,557	$	122,761	$	33,858	$	35,321	$	—	$	—	$	—	$	556,295

YTD gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial real estate loans
Pass/Watch	$	2,087,650	$	1,728,607	$	975,953	$	1,094,505	$	908,748	$	1,420,982	$	178,116	$	—	$	8,394,561
Special Mention		22,150		57,015		25,593		32,119		17,999		63,782		1,600		—		220,258
Substandard		12,320		7,861		14,392		19,972		34,899		81,844		2,631		—		173,919
Total	$	2,122,120	$	1,793,483	$	1,015,938	$	1,146,596	$	961,646	$	1,566,608	$	182,347	$	—	$	8,788,738

YTD gross write-offs	$	—	$	—	$	—	$	—	$	2,152	$	—	$	—	$	—	$	2,152
Residential mortgage loans
Pass/Watch	$	1,228,391	$	964,799	$	580,990	$	600,786	$	417,565	$	1,444,320	$	—	$	—	$	5,236,851
Special Mention		—		—		33		—		752		905		—		—		1,690
Substandard		206		762		2,028		1,966		1,799		8,785		—		—		15,546
Total	$	1,228,597	$	965,561	$	583,051	$	602,752	$	420,116	$	1,454,010	$	—	$	—	$	5,254,087

YTD gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Equity lines
Pass/Watch	$	731	$	—	$	—	$	—	$	—	$	—	$	302,825	$	21,460	$	325,016
Special Mention		5		—		—		—		—		—		—		—		5
Substandard		12		—		—		—		—		—		1,043		220		1,275
Total	$	748	$	—	$	—	$	—	$	—	$	—	$	303,868	$	21,680	$	326,296

YTD gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Installment and other loans
Pass/Watch	$	1,792	$	2,152	$	—	$	—	$	—	$	—	$	—	$	—	$	3,944
Total	$	1,792	$	2,152	$	—	$	—	$	—	$	—	$	—	$	—	$	3,944

YTD gross write-offs	$	116	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	116
Total loans	$	3,943,040	$	3,489,846	$	1,905,136	$	1,908,992	$	1,530,238	$	3,138,606	$	2,303,152	$	28,373	$	18,247,383
Total YTD gross write-offs	$	212	$	587	$	120	$	71	$	3,938	$	360	$	202	$	—	$	5,490

Revolving loans that are converted to term loans presented in the table above are excluded from the term loans by vintage year columns.

The following table details activity in the allowance for loan losses by portfolio segment for the years ended December 31, 2023, and 2022. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.

							*Commercial*			*Residential*			*Installment*
	*Commercial*			*Construction*			*Real Estate*			*Mortgage*			*and Other*
	*Loans*			*Loans*			*Loans*			*and Equity Lines*			*Loans*			*Total*
Allowance for loan losses	(In thousands)
2021 Ending Balance	$	43,394		$	6,302		$	61,081		$	25,379		$	1		$	136,157
Provision/(reversal) for expected credit losses		6,798			4,109			9,079			(7,221	)		148			12,913
Charge-offs		(3,222	)		—			(2,152	)		—			(116	)		(5,490	)
Recoveries		2,465			6			358			74			2			2,905
Net (Charge-offs)/Recoveries	$	(757	)	$	6		$	(1,794	)	$	74		$	(114	)	$	(2,585	)

2022 Ending Balance	$	49,435		$	10,417		$	68,366		$	18,232		$	35		$	146,485
Provision/(reversal) for expected credit losses		15,275			1,984			8,570			(177	)		3			25,655
Charge-offs		(13,909	)		(4,221	)		(5,341	)		—			(15	)		(23,486	)
Recoveries		2,990			—			2,833			85			—			5,908
Net (Charge-offs)/Recoveries	$	(10,919	)	$	(4,221	)	$	(2,508	)	$	85		$	(15	)	$	(17,578	)

2023 Ending Balance	$	53,791		$	8,180		$	74,428		$	18,140		$	23		$	154,562

Allowance for unfunded credit commitments, 2021 Ending Balance	$	3,725		$	3,375		$	—		$	—		$	—		$	7,100
Provision for expected credit losses		1,115			515			—			—			—			1,630
Allowance for unfunded credit commitments 2022 Ending Balance	$	4,840		$	3,890		$	—		$	—		$	—		$	8,730
Provision/(reversal) for expected credit losses		2,048			(1,725	)		—			—			—			323
Allowance for unfunded credit commitments 2023 Ending Balance	$	6,888		$	2,165		$	—		$	—		$	—		$	9,053

Residential mortgage loans in process of formal foreclosure proceedings were $242 thousand as of December 31, 2023, and $456 thousand as of December 31, 2022.