LOANS (Tables)

3 Months Ended

Mar. 31, 2025

LOANS

Schedule of major classification loans


(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

Schedule of activity in the allowance by portfolio segment


		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

Schedule of allowance for credit losses for unfunded commitments


		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

Schedule of amortized cost basis of loans on nonaccrual status and loans


		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		$	—

Schedule of amortized cost basis and related allowance for credit loss of individually analyzed loans considered to be collateral dependent


		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

Schedule of aging of the amortized cost basis in past due 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

Schedule of loans by year of origination and internally assigned credit risk


																							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.