| LOANS |
4. LOANS The following table sets forth the classification of the Company’s loans by loan portfolio segment for the periods presented. | | | | | | (in thousands) | March 31, 2025 | | December 31, 2024 | Residential real estate | $ | 733,563 | | $ | 729,254 | Multi-family | | 535,429 | | | 550,570 | Commercial real estate | | 512,823 | | | 522,805 | Commercial and industrial | | 170,442 | | | 168,909 | Construction and land development | | 7,985 | | | 13,483 | Consumer | | 432 | | | 503 | Total loans | | 1,960,674 | | | 1,985,524 | Allowance for credit losses | | (22,925) | | | (22,779) | Total loans, net | $ | 1,937,749 | | $ | 1,962,745 |
At March 31, 2025 and December 31, 2024, the Company was servicing approximately $358.8 million and $338.8 million, respectively, of loans for others. The Company had $5.6 million and $11.0 million of SBA loans held for sale at March 31, 2025 and December 31, 2024, respectively. The Company had $5.7 million and $1.4 million of residential real estate loans held for sale at March 31, 2025 and December 31, 2024, respectively. The Company had a contracted sale of non-performing loans totaling $5.0 million, net of a $0.3 million charge-off, designated as held for sale at March 31, 2025. For the three months ended March 31, 2025 and 2024, the Company sold loans totaling approximately $46.6 million and $26.7 million, respectively, recognizing net gains of $2.4 million and $2.5 million, respectively. The following tables summarize the activity in the allowance for credit losses by portfolio segment for the three months ended March 31, 2025 and 2024: | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended March 31, 2025 | | | | | | | | | | | | Commercial | | Construction | | | | | | | | | Residential | | Multi- | | Commercial | | and | | and Land | | | | | | | | | Real Estate | | Family | | Real Estate | | Industrial | | Development | | Consumer | | | | | | Loans | | Loans | | Loans | | Loans | | Loans | | Loans | | Total | (in thousands) | | | | | | | | | | | | | | | | | | | | | | Allowance for credit losses: | | | | | | | | | | | | | | | | | | | | | | Beginning balance | | $ | 6,236 | | $ | 5,284 | | $ | 5,605 | | $ | 5,447 | | $ | 180 | | $ | 27 | | $ | 22,779 | Charge-offs | | | — | | | (33) | | | (305) | | | (133) | | | — | | | — | | | (471) | Recoveries | | | — | | | — | | | — | | | 17 | | | — | | | — | | | 17 | Provision for credit losses | | | 315 | | | (252) | | | 79 | | | 529 | | | (67) | | | (4) | | | 600 | Ending balance | | $ | 6,551 | | $ | 4,999 | | $ | 5,379 | | $ | 5,860 | | $ | 113 | | $ | 23 | | $ | 22,925 |
| | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended March 31, 2024 | | | | | | | | | | | | Commercial | | Construction | | | | | | | | | Residential | | Multi- | | Commercial | | and | | and Land | | | | | | | | | Real Estate | | Family | | Real Estate | | Industrial | | Development | | Consumer | | | | | | Loans | | Loans | | Loans | | Loans | | Loans | | Loans | | Total | (in thousands) | | | | | | | | | | | | | | | | | | | | | | Allowance for credit losses: | | | | | | | | | | | | | | | | | | | | | | Beginning balance | | $ | 5,001 | | $ | 4,671 | | $ | 8,390 | | $ | 1,419 | | $ | 122 | | $ | 55 | | $ | 19,658 | Charge-offs | | | — | | | — | | | (30) | | | (60) | | | — | | | — | | | (90) | Recoveries | | | — | | | — | | | — | | | 5 | | | — | | | — | | | 5 | Provision for credit losses | | | 276 | | | (454) | | | 219 | | | 279 | | | (25) | | | 5 | | | 300 | Ending balance | | $ | 5,277 | | $ | 4,217 | | $ | 8,579 | | $ | 1,643 | | $ | 97 | | $ | 60 | | $ | 19,873 |
Allowance for Credit Losses on Unfunded Commitments The Company has recorded an ACL for unfunded credit commitments, which is recorded in other liabilities. The provision for credit losses on unfunded commitments is recorded within other expenses on the Company’s income statement for the three months ended March 31, 2024. The following table presents the allowance for credit losses for unfunded commitments for the three months ended March 31, 2025 and 2024: | | | | | | | | | Three Months Ended March 31, | (in thousands) | | 2025 | | 2024 | Balance at beginning of period | | $ | 314 | | $ | 124 | Provision for credit losses | | | — | | | 140 | Balance at end of period | | $ | 314 | | $ | 264 |
The following table presents the amortized cost basis of loans on nonaccrual status and loans past due over 89 days still accruing as of March 31, 2025 and December 31, 2024: | | | | | | | | | | | | March 31, 2025 | | | Nonaccrual | | | | | Loans Past | | | With No | | | | | Due Over | | | Allowance | | | | | 89 Days | (in thousands) | | for Credit Loss | | Nonaccrual | | Still Accruing | Residential real estate | | $ | 3,202 | | $ | 3,202 | | $ | — | Multi-family | | | — | | | — | | | — | Commercial real estate | | | 3,396 | | | 3,420 | | | — | Commercial and industrial | | | 1,366 | | | 5,075 | | | — | Construction and land development | | | — | | | — | | | — | Consumer | | | — | | | — | | | — | Total | | $ | 7,964 | | $ | 11,697 | | $ | — |
| | | | | | | | | | | | December 31, 2024 | | | Nonaccrual | | | | | Loans Past | | | With No | | | | | Due Over | | | Allowance | | | | | 89 Days | (in thousands) | | for Credit Loss | | Nonaccrual | | Still Accruing | Residential real estate | | $ | 5,497 | | $ | 5,497 | | $ | — | Multi-family | | | 864 | | | 864 | | | — | Commercial real estate | | | 5,300 | | | 5,325 | | | — | Commercial and industrial | | | 1,567 | | | 4,682 | | | — | Construction and land development | | | — | | | — | | | — | Consumer | | | — | | | — | | | — | Total | | $ | 13,228 | | $ | 16,368 | | $ | — |
The Company recognized $27 thousand and $228 thousand of interest income on nonaccrual loans during the three months ended March 31, 2025 and 2024, respectively. Individually Analyzed Loans The Company analyzes loans on an individual basis when management determined that the loan no longer exhibited risk characteristics consistent with the risk characteristics existing in its designed pool of loans, under the Company’s CECL methodology. Loans individually analyzed include certain nonaccrual loans. As of March 31, 2025, the amortized cost basis of individually analyzed loans amounted to $11.2 million, of which $10.4 million were considered collateral dependent. For collateral dependent loans where foreclosure is probable or the borrower is experiencing financial difficulty and repayment is likely to be substantially provided through the sale or operation of the collateral, the ACL is measured based on the difference between the fair value of the collateral adjusted for sales costs and the amortized cost basis of the loan, at measurement date. Certain assets held as collateral may be exposed to future deterioration in fair value, particularly due to changes in real estate markets or usage. The following tables present the amortized cost basis and related allowance for credit loss of individually analyzed loans considered to be collateral dependent as of March 31, 2025 and December 31, 2024. | | | | | | | | | March 31, 2025 | (in thousands) | | Amortized Cost Basis | | Related Allowance | | | | | | | | Residential real estate (1) | | $ | 3,033 | | $ | — | Commercial real estate (2) | | | 3,264 | | | — | Commercial and industrial (1) (2) (3) | | | 4,136 | | | 2,779 | Total | | $ | 10,433 | | $ | 2,779 |
| (1) | Secured by residential real estate |
| (2) | Secured by commercial real estate |
| (3) | Secured by business assets |
| | | | | | | | | December 31, 2024 | (in thousands) | | Amortized Cost Basis | | Related Allowance | | | | | | | | Residential real estate (1) | | $ | 5,783 | | $ | — | Multi-family (2) | | | 864 | | | — | Commercial real estate (2) | | | 5,235 | | | — | Commercial and industrial (1) (2) (3) | | | 3,753 | | | 2,500 | Total | | $ | 15,635 | | $ | 2,500 |
| (1) | Secured by residential real estate |
| (2) | Secured by commercial real estate |
| (3) | Secured by business assets |
The following tables present the aging of the amortized cost basis in past due loans as of March 31, 2025 and December 31, 2024 by class of loans: | | | | | | | | | | | | | | | | | | | (in thousands) | | 30 - 59 | | 60 - 89 | | Greater than | | | | | | | | | | | Days | | Days | | 89 Days | | Total | | Loans Not | | | March 31, 2025 | | Past Due | | Past Due | | Past Due | | Past Due | | Past Due | | Total | Residential real estate | | $ | 9,481 | | $ | 1,808 | | $ | 2,326 | | $ | 13,615 | | $ | 719,948 | | $ | 733,563 | Multi-family | | | — | | | — | | | — | | | — | | | 535,429 | | | 535,429 | Commercial real estate | | | 9,073 | | | — | | | 3,420 | | | 12,493 | | | 500,330 | | | 512,823 | Commercial and industrial | | | 4,798 | | | 4,810 | | | 4,587 | | | 14,195 | | | 156,247 | | | 170,442 | Construction and land development | | | — | | | — | | | — | | | — | | | 7,985 | | | 7,985 | Consumer | | | — | | | — | | | — | | | — | | | 432 | | | 432 | Total | | $ | 23,352 | | $ | 6,618 | | $ | 10,333 | | $ | 40,303 | | $ | 1,920,371 | | $ | 1,960,674 |
| | | | | | | | | | | | | | | | | | | (in thousands) | | 30 - 59 | | 60 - 89 | | Greater than | | | | | | | | | | | Days | | Days | | 89 Days | | Total | | Loans Not | | | December 31, 2024 | | Past Due | | Past Due | | Past Due | | Past Due | | Past Due | | Total | Residential real estate | | $ | 5,215 | | $ | 3,362 | | $ | 4,229 | | $ | 12,806 | | $ | 716,448 | | $ | 729,254 | Multi-family | | | 1,442 | | | — | | | — | | | 1,442 | | | 549,128 | | | 550,570 | Commercial real estate | | | 1,347 | | | — | | | 5,325 | | | 6,672 | | | 516,133 | | | 522,805 | Commercial and industrial | | | 2,533 | | | 661 | | | 4,305 | | | 7,499 | | | 161,410 | | | 168,909 | Construction and land development | | | — | | | — | | | — | | | — | | | 13,483 | | | 13,483 | Consumer | | | — | | | — | | | — | | | — | | | 503 | | | 503 | Total | | $ | 10,537 | | $ | 4,023 | | $ | 13,859 | | $ | 28,419 | | $ | 1,957,105 | | $ | 1,985,524 |
The Company may occasionally make modifications to loans where the borrower is considered to be in financial distress. Types of modifications include principal reductions, significant payment delays, term extensions, interest rate reductions or a combination thereof. The amount of principal reduction is charged-off against the allowance for credit losses. The Company did not have any loans that were both experiencing difficulties and modified during the three months ended March 31, 2025 and 2024. The Company had no commitment to lend additional funds to borrowers for which modifications described above were made during the three months ended March 31, 2025 and the year ended December 31, 2024. The Company monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. No such loans that have been modified in the last 12 months were past due. Upon the Company’s determination that a modified loan (or a portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount. During the three months ended March 31, 2025, no loans that were modified in the last 12 months to borrowers experiencing financial difficulty had a payment default. Credit Quality Indicators: The Company has adopted a credit risk rating system as part of the risk assessment of its loan portfolio. The Company’s lending officers are required to assign a credit risk rating to each loan in their portfolio at origination. When the lender learns of important financial developments, the risk rating is reviewed and adjusted if necessary. In addition, the Company engages a third-party independent loan reviewer that performs quarterly reviews of a sample of loans, validating the credit risk ratings assigned to such loans. The credit risk ratings play an important role in the establishment of the loan loss provision and to confirm the adequacy of the allowance for credit losses. 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, public information, and current economic trends, among other factors. The Company analyzes commercial loans individually by classifying the loans as to credit risk. The Company uses the following definitions for risk ratings: Special Mention: The loan has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of repayment prospects for the asset or in the Company’s credit position at some future date. Substandard: The loan is inadequately protected by current sound worth and paying capacity of the obligor or collateral pledged, if any. Loans classified as Substandard must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Doubtful: The loan has all the weaknesses inherent in one classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing factors, conditions, and values, highly questionable and improbable. Loans not having a credit risk rating of Special Mention, Substandard or Doubtful are considered pass loans. The following table summarizes the Company’s loans by year of origination and internally assigned credit risk at March 31, 2025 and gross charge-offs for the three months ended March 31, 2025: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Revolving | | | | | | Term Loans Amortized Cost by Origination Year | | Revolving | | Loans to | | | | (in thousands) | | 2025 | | 2024 | | 2023 | | 2022 | | 2021 | | Prior | | Loans | | Term Loans | | Total | Residential real estate (1) | | | | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 63,050 | | $ | 199,516 | | $ | 193,521 | | $ | 67,578 | | $ | 33,183 | | $ | 139,745 | | $ | — | | $ | 26,330 | | $ | 722,923 | Special Mention | | | — | | | 1,280 | | | 221 | | | 2,395 | | | 2,099 | | | 765 | | | — | | | — | | | 6,760 | Substandard | | | — | | | — | | | 507 | | | 1 | | | — | | | 2,700 | | | — | | | — | | | 3,208 | Total Residential real estate | | | 63,050 | | | 200,796 | | | 194,249 | | | 69,974 | | | 35,282 | | | 143,210 | | | — | | | 26,330 | | | 732,891 | Current period gross charge-offs | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Multi-family | | | | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | | 2,094 | | | 1,342 | | | 251,948 | | | 167,750 | | | 57,124 | | | 54,725 | | | — | | | — | | | 534,983 | Special Mention | | | — | | | — | | | — | | | — | | | — | | | 446 | | | — | | | — | | | 446 | Substandard | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total Multi-family | | | 2,094 | | | 1,342 | | | 251,948 | | | 167,750 | | | 57,124 | | | 55,171 | | | — | | | — | | | 535,429 | Current period gross charge-offs | | | — | | | — | | | — | | | — | | | — | | | 33 | | | — | | | — | | | 33 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Commercial real estate | | | | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | | 46,751 | | | 64,906 | | | 142,306 | | | 107,725 | | | 29,275 | | | 105,972 | | | — | | | — | | | 496,935 | Special Mention | | | — | | | — | | | 1,707 | | | 7,493 | | | 399 | | | 1,294 | | | — | | | — | | | 10,893 | Substandard | | | — | | | 913 | | | — | | | 21 | | | 24 | | | 4,037 | | | — | | | — | | | 4,995 | Total Commercial real estate | | | 46,751 | | | 65,819 | | | 144,013 | | | 115,239 | | | 29,698 | | | 111,303 | | | — | | | — | | | 512,823 | Current period gross charge-offs | | | — | | | — | | | — | | | — | | | 305 | | | — | | | — | | | — | | | 305 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Commercial and industrial | | | | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | | 57,603 | | | 65,648 | | | 21,894 | | | 3,533 | | | 4,777 | | | 3,225 | | | — | | | — | | | 156,680 | Special Mention | | | 257 | | | 6,095 | | | — | | | 543 | | | 788 | | | 461 | | | — | | | — | | | 8,144 | Substandard | | | 37 | | | 1,335 | | | 2,576 | | | 961 | | | 244 | | | 465 | | | — | | | — | | | 5,618 | Total Commercial and industrial | | | 57,897 | | | 73,078 | | | 24,470 | | | 5,037 | | | 5,809 | | | 4,151 | | | — | | | — | | | 170,442 | Current period gross charge-offs | | | — | | | 133 | | | — | | | — | | | — | | | — | | | — | | | — | | | 133 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Construction and land development | | | | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | | — | | | 1,210 | | | — | | | 2,975 | | | — | | | — | | | — | | | — | | | 4,185 | Special Mention | | | — | | | — | | | — | | | 3,800 | | | — | | | — | | | — | | | — | | | 3,800 | Substandard | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total Construction and land development | | | — | | | 1,210 | | | — | | | 6,775 | | | — | | | — | | | — | | | — | | | 7,985 | Current period gross charge-offs | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Consumer | | | | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | | 91 | | | 234 | | | 107 | | | — | | | — | | | — | | | — | | | — | | | 432 | Special Mention | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Substandard | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total Consumer | | | 91 | | | 234 | | | 107 | | | — | | | — | | | — | | | — | | | — | | | 432 | Current period gross charge-offs | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total Loans | | $ | 169,883 | | $ | 342,479 | | $ | 614,787 | | $ | 364,775 | | $ | 127,913 | | $ | 313,835 | | $ | — | | $ | 26,330 | | $ | 1,960,002 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Gross charge-offs | | $ | — | | $ | 133 | | $ | — | | $ | — | | $ | 305 | | $ | 33 | | $ | — | | $ | — | | $ | 471 |
| (1) | Certain fixed rate residential mortgage loans are included in a fair value hedging relationship. The amortized cost excludes a contra asset of $672,000 related to basis adjustments for loans in the closed portfolio under the portfolio layer method at March 31, 2025. These basis adjustments would be allocated to the amortized cost of specific loans within the pool if the hedge was de-designated. See “Note 10 – Derivates” for more information on the fair value hedge. |
The following table summarizes the Company’s loans by year of origination and internally assigned credit risk at December 31, 2024: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Revolving | | | | | | Term Loans Amortized Cost by Origination Year | | Revolving | | Loans to | | | | (in thousands) | | 2024 | | 2023 | | 2022 | | 2021 | | 2020 | | Prior | | Loans | | Term Loans | | Total | Residential real estate (1) | | | | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 81,599 | | $ | 180,498 | | $ | 193,204 | | $ | 58,694 | | $ | 33,539 | | $ | 143,580 | | $ | — | | $ | 25,004 | | $ | 716,118 | Special Mention | | | 407 | | | 877 | | | 585 | | | 1,199 | | | 2,110 | | | 768 | | | — | | | — | | | 5,946 | Substandard | | | — | | | 514 | | | 679 | | | 589 | | | — | | | 3,467 | | | — | | | 1,418 | | | 6,667 | Total Residential real estate | | | 82,006 | | | 181,889 | | | 194,468 | | | 60,482 | | | 35,649 | | | 147,815 | | | — | | | 26,422 | | | 728,731 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Multi-family | | | | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | | 2,814 | | | 3,393 | | | 292,430 | | | 159,094 | | | 35,368 | | | 56,158 | | | — | | | — | | | 549,257 | Special Mention | | | — | | | — | | | — | | | — | | | — | | | 450 | | | — | | | — | | | 450 | Substandard | | | — | | | — | | | — | | | 863 | | | — | | | — | | | — | | | — | | | 863 | Total Multi-family | | | 2,814 | | | 3,393 | | | 292,430 | | | 159,957 | | | 35,368 | | | 56,608 | | | — | | | — | | | 550,570 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Commercial real estate | | | | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | | 50,579 | | | 78,564 | | | 173,301 | | | 78,044 | | | 21,870 | | | 104,957 | | | — | | | — | | | 507,315 | Special Mention | | | — | | | 911 | | | 1,709 | | | 3,866 | | | 399 | | | 1,298 | | | — | | | — | | | 8,183 | Substandard | | | — | | | — | | | — | | | 2,790 | | | 483 | | | 4,034 | | | — | | | — | | | 7,307 | Total Commercial real estate | | | 50,579 | | | 79,475 | | | 175,010 | | | 84,700 | | | 22,752 | | | 110,289 | | | — | | | — | | | 522,805 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Commercial and industrial | | | | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | | 68,836 | | | 73,744 | | | 8,834 | | | 6,022 | | | 1,375 | | | 2,496 | | | — | | | — | | | 161,307 | Special Mention | | | 236 | | | 251 | | | — | | | 544 | | | 805 | | | 416 | | | — | | | — | | | 2,252 | Substandard | | | 42 | | | 815 | | | 2,500 | | | 1,261 | | | 249 | | | 483 | | | — | | | — | | | 5,350 | Total Commercial and industrial | | | 69,114 | | | 74,810 | | | 11,334 | | | 7,827 | | | 2,429 | | | 3,395 | | | — | | | — | | | 168,909 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Construction and land development | | | | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | | 921 | | | 3,288 | | | — | | | 5,473 | | | — | | | — | | | — | | | — | | | 9,682 | Special Mention | | | — | | | — | | | — | | | 3,801 | | | — | | | — | | | — | | | — | | | 3,801 | Substandard | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total Construction and land development | | | 921 | | | 3,288 | | | — | | | 9,274 | | | — | | | — | | | — | | | — | | | 13,483 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Consumer | | | | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | | 138 | | | 292 | | | 73 | | | — | | | — | | | — | | | — | | | — | | | 503 | Special Mention | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Substandard | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total Consumer | | | 138 | | | 292 | | | 73 | | | — | | | — | | | — | | | — | | | — | | | 503 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total Loans | | $ | 205,572 | | $ | 343,147 | | $ | 673,315 | | $ | 322,240 | | $ | 96,198 | | $ | 318,107 | | $ | — | | $ | 26,422 | | $ | 1,985,001 |
| (1) | Certain fixed rate residential mortgage loans are included in a fair value hedging relationship. The amortized cost excludes a contra asset of $523,000 related to basis adjustments for loans in the closed portfolio under the portfolio layer method at December 31, 2024. These basis adjustments would be allocated to the amortized cost of specific loans within the pool if the hedge was de-designated. See “Note 10 – Derivates” for more information on the fair value hedge. |
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