Note 3 - LOANS/LEASES RECEIVABLE

3 Months Ended

Mar. 31, 2024

Notes to Financial Statements

LOANS/LEASES RECEIVABLE

NOTE 3 – LOANS/LEASES RECEIVABLE

The composition of the loan/lease portfolio as of March 31, 2024 and December 31, 2023 is presented as follows:

	March 31, 2024		December 31, 2023
	(dollars in thousands)
C&I:
C&I - revolving	$	326,129	$	325,243
C&I - other */**		1,470,609		1,481,778
		1,796,738		1,807,021
CRE - owner occupied		621,069		607,365
CRE - non-owner occupied		1,055,089		1,008,892
Construction and land development**		1,149,527		1,420,525
Multi-family**		1,303,566		996,143
Direct financing leases***		28,089		31,164
1-4 family real estate****		563,358		544,971
Consumer		130,900		127,335
		6,648,336		6,543,416
Allowance for credit losses		(84,470)		(87,200)
	$	6,563,866	$	6,456,216
*** Direct financing leases:
Net minimum lease payments to be received	$	31,414	$	34,966
Estimated unguaranteed residual values of leased assets		165		165
Unearned lease/residual income		(3,490)		(3,967)
		28,089		31,164
Plus deferred lease origination costs, net of fees		53		75
		28,142		31,239
Less allowance for credit losses		(884)		(992)
	$	27,258	$	30,247

*      Includes equipment financing agreements outstanding at m2, totaling $326.7 million and $319.5 million as of March 31, 2024 and December 31, 2023, respectively.

**     As of March 31, 2024, there were construction and land development and multi-family loans held for sale in preparation for securitization totaling $274.8 million.  The balances in these loan classes as of March 31, 2024 were $51.9 million and $222.9 million, respectively.  There were no loans held for sale in preparation for securitization at December 31, 2023.

***   Management performs an evaluation of the estimated unguaranteed residual values of leased assets on an annual basis, at a minimum. The evaluation consists of discussions with reputable and current vendors, which is combined with management's expertise and understanding of the current states of particular industries to determine informal valuations of the equipment. As necessary and where available, management will utilize valuations by independent appraisers. The majority of leases with residual values contain a lease options rider, which requires the lessee to pay the residual value directly, finance the payment of the residual value, or extend the lease term to pay the residual value. In these cases, the residual value is protected and the risk of loss is minimal.

**** Includes residential real estate held for sale totaling $528 thousand and $2.6 million as of March 31, 2024 and December 31, 2023, respectively.

Accrued interest on loans, which is excluded from the amortized cost of loans, totaled $34.0 million and $31.8 million at March 31, 2024 and December 31, 2023, respectively, and was included in other assets on the consolidated balance sheets.

Changes in accretable discounts on acquired loans for the three months ended March 31, 2024 and 2023, respectively, are presented as follows:

	For the Three Months Ended
	March 31, 2024		March 31, 2023
	Performing		Performing
	Loans		Loans
	(dollars in thousands)
Balance at the beginning of the period	$	(3,891)	$	(6,088)
Accretion recognized		352		849
Balance at the end of the period	$	(3,539)	$	(5,239)

The aging of the loan/lease portfolio by classes of loans/leases as of March 31, 2024 and December 31, 2023 is presented as follows:

	As of March 31, 2024
										Accruing Past
				30-59 Days			60-89 Days			Due 90 Days or			Nonaccrual
Classes of Loans/Leases	Current			Past Due			Past Due			More			Loans/Leases			Total
	(dollars in thousands)
C&I:
C&I - revolving	$	324,707		$	836		$	586		$	—		$	—	$		326,129
C&I - other		1,445,236			10,014			4,100			1			11,258			1,470,609
CRE - owner occupied		618,123			184			116			—			2,646			621,069
CRE - non-owner occupied		1,053,325			—			—			—			1,764			1,055,089
Construction and land development		1,144,482			—			2,686			—			2,359			1,149,527
Multi-family		1,295,394			—			—			—			8,172			1,303,566
Direct financing leases		27,111			375			177			—			426			28,089
1-4 family real estate		557,301			3,515			—			141			2,401			563,358
Consumer		130,276			171			40			—			413			130,900
	$	6,595,955		$	15,095		$	7,705		$	142		$	29,439		$	6,648,336
As a percentage of total loan/lease portfolio		99.21	%		0.23	%		0.12	%		0.00	%		0.44	%		100.00	%

	As of December 31, 2023
										Accruing Past
				30-59 Days			60-89 Days			Due 90 Days or			Nonaccrual
Classes of Loans/Leases	Current			Past Due			Past Due			More			Loans/Leases			Total
	(dollars in thousands)
C&I
C&I - revolving	$	325,243		$	—		$	—		$	—		$	—		$	325,243
C&I - other		1,459,818			4,848			5,603			1			11,508			1,481,778
CRE - owner occupied		604,602			—			83			—			2,680			607,365
CRE - non-owner occupied		1,003,267			631			—			—			4,994			1,008,892
Construction and land development		1,418,016			—			—			—			2,509			1,420,525
Multi-family		987,971			—			—			—			8,172			996,143
Direct financing leases		30,501			186			188			—			289			31,164
1-4 family real estate		538,229			3,883			534			85			2,240			544,971
Consumer		126,868			103			3			—			361			127,335
	$	6,494,515		$	9,651		$	6,411		$	86		$	32,753		$	6,543,416
As a percentage of total loan/lease portfolio		99.25	%		0.15	%		0.10	%		0.00	%		0.50	%		100.00	%

NPLs by classes of loans/leases as of March 31, 2024 and December 31, 2023 are presented as follows:

	As of March 31, 2024
	Accruing Past		Nonaccrual		Nonaccrual
	Due 90 Days or		Loans/Leases		Loans/Leases				Percentage of
Classes of Loans/Leases	More		with an ACL		without an ACL		Total NPLs		Total NPLs
	(dollars in thousands)
C&I:
C&I - revolving	$	—	$	—	$	—	$	—	-	%
C&I - other		1		8,616		2,642		11,259	38
CRE - owner occupied		—		1,353		1,293		2,646	9
CRE - non-owner occupied		—		1,764		—		1,764	6
Construction and land development		—		2,359		—		2,359	8
Multi-family		—		—		8,172		8,172	28
Direct financing leases		—		287		139		426	1
1-4 family real estate		141		1,660		741		2,542	9
Consumer		—		413		—		413	1
	$	142	$	16,452	$	12,987	$	29,581	100	%

	As of December 31, 2023
	Accruing Past		Nonaccrual		Nonaccrual
	Due 90 Days or		Loans/Leases		Loans/Leases				Percentage of
Classes of Loans/Leases	More		with an ACL		without an ACL		Total NPLs		Total NPLs
		(dollars in thousands)
C&I:
C&I - revolving	$	—	$	—	$	—	$	—	-	%
C&I - other		1		8,865		2,643		11,509	35
CRE - owner occupied		—		530		2,150		2,680	8
CRE - non-owner occupied		—		1,213		3,781		4,994	15
Construction and land development		—		2,509		—		2,509	8
Multi-family		—		—		8,172		8,172	25
Direct financing leases		—		206		83		289	1
1-4 family real estate		85		1,866		374		2,325	7
Consumer		—		361		—		361	1
	$	86	$	15,550	$	17,203	$	32,839	100	%

The Company did not recognize any interest income on nonaccrual loans during the three months ended March 31, 2024 and 2023.

Changes in the ACL loans/leases by portfolio segment for the three months ended March 31, 2024 and 2023, respectively, are presented as follows:

	Three Months Ended March 31, 2024
					CRE		CRE		Construction				1-4
	C&I -		C&I -		Owner		Non-Owner		and Land		Multi-		Family
	Revolving		Other*		Occupied		Occupied		Development		Family		Real Estate		Consumer		Total
	(dollars in thousands)
Balance, beginning	$	4,224	$	27,460	$	8,223	$	11,581	$	16,856	$	12,463	$	4,917	$	1,476	$	87,200
Change in ACL for writedown of LHFS to fair value		—		—		—		—		(513)		(2,864)		—		—		(3,377)
Provision		216		2,227		193		1,026		(3,606)		3,329		375		(24)		3,736
Charge-offs		—		(3,538)		—		—		—		—		(3)		(19)		(3,560)
Recoveries		—		466		—		—		—		—		—		5		471
Balance, ending	$	4,440	$	26,615	$	8,416	$	12,607	$	12,737	$	12,928	$	5,289	$	1,438	$	84,470

*   Included within the C&I – Other column are ACL on leases with a beginning balance of $992 thousand, negative provision of $68 thousand, charge-offs of $89 thousand and recoveries of $49 thousand. ACL on leases was $884 thousand as of March 31, 2024.

	Three Months Ended March 31, 2023
					CRE		CRE		Construction				1-4
	C&I -		C&I -		Owner		Non-Owner		and Land		Multi-		Family
	Revolving		Other*		Occupied		Occupied		Development		Family		Real Estate		Consumer		Total
	(dollars in thousands)
Balance, beginning	$	4,457	$	27,753	$	9,965	$	11,749	$	14,262	$	13,186	$	4,963	$	1,371	$	87,706
Reduction of ACL for writedown of LHFS to fair value		—		—		—		—		(354)		(1,355)		—		—		(1,709)
Provision		180		557		(668)		878		1,349		(210)		302		70		2,458
Charge-offs		—		(2,055)		(208)		—		(12)		—		—		—		(2,275)
Recoveries		—		382		—		5		—		—		5		1		393
Balance, ending	$	4,637	$	26,637	$	9,089	$	12,632	$	15,245	$	11,621	$	5,270	$	1,442	$	86,573

*    Included within the C&I – Other column are ACL on leases with adoption impact of $970 thousand, provision of $69 thousand, charge-offs of $4 thousand and recoveries of $18 thousand. ACL on leases was $1.1 million as of March 31, 2023.

The composition of the ACL loans/leases by portfolio segment based on evaluation method are as follows:

	As of March 31, 2024
	Amortized Cost of Loans Receivable						Allowance for Credit Losses
	Individually		Collectively				Individually		Collectively
	Evaluated for		Evaluated for				Evaluated for		Evaluated for
	Credit Losses		Credit Losses		Total		Credit Losses		Credit Losses		Total
	(dollars in thousands)
C&I :
C&I - revolving	$	3,920	$	322,209	$	326,129	$	965	$	3,475	$	4,440
C&I - other*		24,191		1,474,507		1,498,698		3,759		22,856		26,615
		28,111		1,796,716		1,824,827		4,724		26,331		31,055
CRE - owner occupied		22,252		598,817		621,069		2,623		5,793		8,416
CRE - non-owner occupied		19,391		1,035,698		1,055,089		1,068		11,539		12,607
Construction and land development		2,573		1,146,954		1,149,527		791		11,946		12,737
Multi-family		8,203		1,295,363		1,303,566		3		12,925		12,928
1-4 family real estate		3,317		560,041		563,358		278		5,011		5,289
Consumer		553		130,347		130,900		67		1,371		1,438
	$	84,400	$	6,563,936	$	6,648,336	$	9,554	$	74,916	$	84,470

*   Included within the C&I – Other category are leases individually evaluated of $426 thousand with a related allowance for credit losses of $81 thousand and leases collectively evaluated of $27.7 million with a related allowance for credit losses of $803 thousand.

	As of December 31, 2023
	Amortized Cost of Loans Receivable						Allowance for Credit Losses
	Individually		Collectively				Individually		Collectively
	Evaluated for		Evaluated for				Evaluated for		Evaluated for
	Credit Losses		Credit Losses		Total		Credit Losses		Credit Losses		Total
	(dollars in thousands)
C&I :
C&I - revolving	$	4,680	$	320,563	$	325,243	$	632	$	3,592	$	4,224
C&I - other*		20,133		1,492,809		1,512,942		3,642		23,818		27,460
		24,813		1,813,372		1,838,185		4,274		27,410		31,684
CRE - owner occupied		22,709		584,656		607,365		2,426		5,797		8,223
CRE - non-owner occupied		21,886		987,006		1,008,892		661		10,920		11,581
Construction and land development		2,726		1,417,799		1,420,525		809		16,047		16,856
Multi-family		8,206		987,937		996,143		3		12,460		12,463
1-4 family real estate		3,128		541,843		544,971		289		4,628		4,917
Consumer		508		126,827		127,335		56		1,420		1,476
	$	83,976	$	6,459,440	$	6,543,416	$	8,518	$	78,682	$	87,200

*   Included within the C&I – Other category are leases individually evaluated of $289 thousand with a related allowance for credit losses of $68 thousand and leases collectively evaluated of $30.9 million with a related allowance for credit losses of $924 thousand.

The following table presents the amortized cost basis of collateral dependent loans, by the primary collateral type, which are individually evaluated to determine expected credit losses as of March 31, 2024 and December 31, 2023:

	As of March 31, 2024
					Non
	Commercial		Owner-occupied		Owner-Occupied		Owner Occupied
	Assets		CRE		Real Estate		Real Estate		Securities		Equipment		Other		Total
	(dollars in thousands)
C & I:
C&I - revolving	$	3,920	$	—	$	—	$	—	$	—	$	—	$	—	$	3,920
C&I - other*		5,680		—		—		—		5,184		12,573		754		24,191
		9,600		—		—		—		5,184		12,573		754		28,111
CRE - owner occupied		—		22,189		—		63		—		—		—		22,252
CRE - non-owner occupied		—		—		19,391		—		—		—		—		19,391
Construction and land development		—		—		2,573		—		—		—		—		2,573
Multi-family		—		—		8,203		—		—		—		—		8,203
1-4 family real estate		—		—		187		3,130		—		—		—		3,317
Consumer		—		—		119		393		—		—		41		553
	$	9,600	$	22,189	$	30,473	$	3,586	$	5,184	$	12,573	$	795	$	84,400

*   Included within the C&I – Other category are leases individually evaluated of $426 thousand with primary collateral of equipment.

	As of December 31, 2023
					Non
	Commercial		Owner-occupied		Owner-Occupied		Owner Occupied
	Assets		CRE		Real Estate		Real Estate		Securities		Equipment		Other		Total
	(dollars in thousands)
C & I:
C&I - revolving	$	4,680	$	—	$	—	$	—	$	—	$	—	$	—	$	4,680
C&I - other*		871		—		—		—		5,191		13,249		822		20,133
		5,551		—		—		—		5,191		13,249		822		24,813
CRE - owner occupied		—		22,644		—		65		—		—		—		22,709
CRE - non-owner occupied		—		—		21,886		—		—		—		—		21,886
Construction and land development		—		150		2,576		—		—		—		—		2,726
Multi-family		—		—		8,206		—		—		—		—		8,206
1-4 family real estate		—		—		189		2,939		—		—		—		3,128
Consumer		—		—		119		365		—		—		24		508
	$	5,551	$	22,794	$	32,976	$	3,369	$	5,191	$	13,249	$	846	$	83,976

*   Included within the C&I – Other category are leases individually evaluated of $289 thousand with primary collateral of equipment.

For all loans except direct financing leases and equipment financing agreements, the Company’s credit quality indicator consists of internally assigned risk ratings.  Each such loan is assigned a risk rating upon origination. The risk rating is reviewed every 15 months, at a minimum, and on an as-needed basis depending on the specific circumstances of the loan.

For certain C&I loans (including equipment financing agreements and direct financing leases), the Company’s credit quality indicator is performance determined by delinquency status.  Delinquency status is updated daily by the Company’s loan system. For years prior to 2024, certain C&I loans (including equipment financing agreements and direct financing leases), certain construction and land development, certain 1-4 family real estate loans, and certain consumer loans, the Company’s credit quality indicator is performance determined by delinquency status.  Delinquency status is updated daily by the Company’s loan system.

The following tables show the credit quality indicator of loans by class of receivable and year of origination as of March 31, 2024:

	As of March 31, 2024
	Term Loans
	Amortized Cost Basis by Origination Year
													Revolving
													Loans
Internally Assigned													Amortized
Risk Rating	2024		2023		2022		2021		2020		Prior		Cost Basis		Total
	(dollars in thousands)
C&I - revolving
Pass	$	—	$	—	$	—	$	—	$	—	$	—	$	298,696	$	298,696
Special Mention		—		—		—		—		—		—		23,763		23,763
Substandard		—		—		—		—		—		—		3,670		3,670
Doubtful		—		—		—		—		—		—		—		—
Total C&I - revolving	$	—	$	—	$	—	$	—	$	—	$	—	$	326,129	$	326,129
C&I - other
Pass	$	108,985	$	367,853	$	273,527	$	107,537	$	63,794	$	179,537	$	—	$	1,101,233
Special Mention		637		11,220		8,324		5,434		3,017		1,252		—		29,884
Substandard		—		13		5,124		594		382		6,652		—		12,765
Doubtful		—		—		—		—		—		—		—		—
Total C&I - other	$	109,622	$	379,086	$	286,975	$	113,565	$	67,193	$	187,441	$	—	$	1,143,882
CRE - owner occupied
Pass	$	17,144	$	99,682	$	123,235	$	132,150	$	107,501	$	84,907	$	12,288	$	576,907
Special Mention		834		4,223		760		10,085		5,482		2,267		—		23,651
Substandard		220		1,399		549		27		15,911		2,405		—		20,511
Doubtful		—		—		—		—		—		—		—		—
Total CRE - owner occupied	$	18,198	$	105,304	$	124,544	$	142,262	$	128,894	$	89,579	$	12,288	$	621,069
CRE - non-owner occupied
Pass	$	40,649	$	213,724	$	300,824	$	187,315	$	116,641	$	145,024	$	7,645	$	1,011,822
Special Mention		4,403		161		57		186		11,998		6,922		150		23,877
Substandard		—		1,647		1,200		—		1,971		14,572		—		19,390
Doubtful		—		—		—		—		—		—		—		—
Total CRE - non-owner occupied	$	45,052	$	215,532	$	302,081	$	187,501	$	130,610	$	166,518	$	7,795	$	1,055,089
Construction and land development
Pass	$	92,918	$	470,029	$	316,429	$	154,364	$	71,968	$	2,871	$	29,656	$	1,138,235
Special Mention		4,918		3,801		—		—		—		—		—		8,719
Substandard		—		—		1,367		1,206		—		—		—		2,573
Doubtful		—		—		—		—		—		—		—		—
Total Construction and land development	$	97,836	$	473,830	$	317,796	$	155,570	$	71,968	$	2,871	$	29,656	$	1,149,527
Multi-family
Pass	$	40,832	$	172,829	$	300,506	$	270,933	$	310,484	$	197,811	$	287	$	1,293,682
Special Mention		—		1,681		—		—		—		—		—		1,681
Substandard		—		—		—		8,203		—		—		—		8,203
Doubtful		—		—		—		—		—		—		—		—
Total Multi-family	$	40,832	$	174,510	$	300,506	$	279,136	$	310,484	$	197,811	$	287	$	1,303,566
1-4 family real estate
Pass	$	30,615	$	132,360	$	101,606	$	125,134	$	87,667	$	77,859	$	4,846	$	560,087
Special Mention		—		27		—		58		—		10		—		95
Substandard		—		306		638		652		631		919		30		3,176
Doubtful		—		—		—		—		—		—		—		—
Total 1-4 family real estate	$	30,615	$	132,693	$	102,244	$	125,844	$	88,298	$	78,788	$	4,876	$	563,358
Consumer
Pass	$	4,726	$	18,337	$	8,571	$	2,171	$	2,897	$	1,956	$	91,630	$	130,288
Special Mention		—		—		—		—		—		—		59		59
Substandard		—		179		128		44		11		123		68		553
Doubtful		—		—		—		—		—		—		—		—
Total Consumer	$	4,726	$	18,516	$	8,699	$	2,215	$	2,908	$	2,079	$	91,757	$	130,900
Total	$	346,881	$	1,499,471	$	1,442,845	$	1,006,093	$	800,355	$	725,087	$	472,788	$	6,293,520

	As of March 31, 2024
	Term Loans
	Amortized Cost Basis by Origination Year												Revolving
													Loans
													Amortized
Delinquency Status *	2024		2023		2022		2021		2020		Prior		Cost Basis		Total
	(dollars in thousands)
C&I - other
Performing	$	49,148	$	129,715	$	91,484	$	33,559	$	10,159	$	1,714	$	—	$	315,779
Nonperforming		—		2,589		4,979		3,007		336		37		—		10,948
Total C&I - other	$	49,148	$	132,304	$	96,463	$	36,566	$	10,495	$	1,751	$	—	$	326,727
Direct financing leases
Performing	$	172	$	11,787	$	9,851	$	2,449	$	2,037	$	1,367	$	—	$	27,663
Nonperforming		—		—		205		47		174		—		—		426
Total Direct financing leases	$	172	$	11,787	$	10,056	$	2,496	$	2,211	$	1,367	$	—	$	28,089
Total	$	49,320	$	144,091	$	106,519	$	39,062	$	12,706	$	3,118	$	—	$	354,816

* Performing = loans/leases accruing and less than 90 days past due. Nonperforming = loans/leases on nonaccrual and accruing loans/leases that are greater than or equal to 90 days past due.

The following table shows the gross charge-offs of loans and leases by class of receivable and year of origination for the three months ended March 31, 2024:

	Three Months Ended March 31, 2024
	Gross Charge-off by Origination Year
Classes of Loans/Leases	2024		2023		2022		2021		2020		Prior		Total
	(dollars in thousands)
C&I:
C&I - revolving	$	—	$	—	$	—	$	—	$	—	$	—	$	—
C&I - other		7		678		2,033		522		33		176		3,449
CRE - owner occupied		—		—		—		—		—		—		—
CRE - non-owner occupied		—		—		—		—		—		—		—
Construction and land development		—		—		—		—		—		—		—
Multi-family		—		—		—		—		—		—		—
Direct financing leases		—		—		10		24		42		13		89
1-4 family real estate		—		—		—		—		—		3		3
Consumer		—		—		19		—		—		—		19
	$	7	$	678	$	2,062	$	546	$	75	$	192	$	3,560

The following tables show the credit quality indicator of loans by class of receivable and year of origination as of December 31, 2023:

	As of December 31, 2023
	Term Loans
	Amortized Cost Basis by Origination Year
													Revolving
													Loans
Internally Assigned													Amortized
Risk Rating	2023		2022		2021		2020		2019		Prior		Cost Basis		Total
	(dollars in thousands)
C&I - revolving
Pass	$	—	$	—	$	—	$	—	$	—	$	—	$	294,449	$	294,449
Special Mention		—		—		—		—		—		—		26,289		26,289
Substandard		—		—		—		—		—		—		4,505		4,505
Doubtful		—		—		—		—		—		—		—		—
Total C&I - revolving	$	—	$	—	$	—	$	—	$	—	$	—	$	325,243	$	325,243
C&I - other
Pass	$	430,764	$	301,225	$	128,057	$	68,882	$	62,149	$	132,171	$	—	$	1,123,248
Special Mention		11,617		8,777		5,572		3,088		1,024		386		—		30,464
Substandard		14		81		625		443		2,108		5,320		—		8,591
Doubtful		—		—		—		—		—		—		—		—
Total C&I - other	$	442,395	$	310,083	$	134,254	$	72,413	$	65,281	$	137,877	$	—	$	1,162,303
CRE - owner occupied
Pass	$	90,708	$	124,388	$	139,598	$	109,483	$	28,702	$	58,214	$	12,959	$	564,052
Special Mention		5,091		711		8,689		5,567		466		1,828		—		22,352
Substandard		1,955		564		24		15,978		1,312		1,128		—		20,961
Doubtful		—		—		—		—		—		—		—		—
Total CRE - owner occupied	$	97,754	$	125,663	$	148,311	$	131,028	$	30,480	$	61,170	$	12,959	$	607,365
CRE - non-owner occupied
Pass	$	200,214	$	276,055	$	195,013	$	119,428	$	72,136	$	78,346	$	7,406	$	948,598
Special Mention		16,842		58		223		12,057		2,359		6,719		150		38,408
Substandard		3,805		1,200		—		1,989		14,892		—		—		21,886
Doubtful		—		—		—		—		—		—		—		—
Total CRE - non-owner occupied	$	220,861	$	277,313	$	195,236	$	133,474	$	89,387	$	85,065	$	7,556	$	1,008,892
Construction and land development
Pass	$	467,045	$	485,376	$	271,881	$	151,091	$	1,911	$	4,137	$	30,304	$	1,411,745
Special Mention		6,054		—		—		—		—		—		—		6,054
Substandard		—		1,517		1,209		—		—		—		—		2,726
Doubtful		—		—		—		—		—		—		—		—
Total Construction and land development	$	473,099	$	486,893	$	273,090	$	151,091	$	1,911	$	4,137	$	30,304	$	1,420,525
Multi-family
Pass	$	180,971	$	195,939	$	170,893	$	239,410	$	102,070	$	96,897	$	162	$	986,342
Special Mention		1,595		—		—		—		—		—		—		1,595
Substandard		—		—		8,206		—		—		—		—		8,206
Doubtful		—		—		—		—		—		—		—		—
Total Multi-family	$	182,566	$	195,939	$	179,099	$	239,410	$	102,070	$	96,897	$	162	$	996,143
1-4 family real estate
Pass	$	133,923	$	103,460	$	130,724	$	89,642	$	25,914	$	54,850	$	3,329	$	541,842
Special Mention		28		—		59		—		—		—		—		87
Substandard		144		215		815		637		519		712		—		3,042
Doubtful		—		—		—		—		—		—		—		—
Total 1-4 family real estate	$	134,095	$	103,675	$	131,598	$	90,279	$	26,433	$	55,562	$	3,329	$	544,971
Consumer
Pass	$	17,722	$	9,405	$	2,573	$	3,024	$	622	$	1,842	$	91,580	$	126,768
Special Mention		—		—		—		—		—		—		59		59
Substandard		175		119		12		12		—		133		57		508
Doubtful		—		—		—		—		—		—		—		—
Total Consumer	$	17,897	$	9,524	$	2,585	$	3,036	$	622	$	1,975	$	91,696	$	127,335
Total	$	1,568,667	$	1,509,090	$	1,064,173	$	820,731	$	316,184	$	442,683	$	471,249	$	6,192,777

	As of December 31, 2023
	Term Loans
	Amortized Cost Basis by Origination Year												Revolving
													Loans
													Amortized
Delinquency Status *	2023		2022		2021		2020		2019		Prior		Cost Basis		Total
	(dollars in thousands)
C&I - other
Performing	$	149,216	$	103,804	$	40,003	$	12,590	$	2,539	$	132	$	—	$	308,284
Nonperforming		1,533		6,138		3,049		373		92		6		—		11,191
Total C&I - other	$	150,749	$	109,942	$	43,052	$	12,963	$	2,631	$	138	$	—	$	319,475
Direct financing leases
Performing	$	12,217	$	11,170	$	3,005	$	2,631	$	1,561	$	291	$	—	$	30,875
Nonperforming		—		50		43		176		20		—		—		289
Total Direct financing leases	$	12,217	$	11,220	$	3,048	$	2,807	$	1,581	$	291	$	—	$	31,164
Total	$	162,966	$	121,162	$	46,100	$	15,770	$	4,212	$	429	$	—	$	350,639

* Performing = loans/leases accruing and less than 90 days past due. Nonperforming = loans/leases on nonaccrual and accruing loans/leases that are greater than or equal to 90 days past due.

There were no loan and lease modifications to borrowers experiencing financial difficulty during the three months ended March 31, 2024. Any loan and lease modifications to borrowers experiencing financial difficulty during 2023 were immaterial.

Changes in the ACL for OBS exposures for the three months ended March 31, 2024 and 2023 are presented as follows:

	Three Months Ended
	March 31, 2024		March 31, 2023
Balance, beginning	$	9,529	$	5,552
Provisions (credited) to expense		(322)		481
Balance, ending	$	9,207	$	6,033