v3.25.2
SUBSEQUENT EVENTS
12 Months Ended
Dec. 31, 2024
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS SUBSEQUENT EVENTS
During the first quarter of 2025, Management determined that a triggering event had occurred at its Banking reporting unit as a result of further deteriorated credit quality coupled with the trends in the stock price. The Company performed a quantitative impairment test on its Banking reporting unit as of March 31, 2025, and engaged a third-party service provider to assist Management with the determination of the fair value. The resulting calculation indicated that the carrying amount exceeded the fair value of the Company's Banking reporting unit. As a result of the assessment, the Company expects to recognize goodwill impairment expense between $135.0 million and $154.0 million in the first quarter of 2025. Impairment will not impact our regulatory capital ratios, tangible common equity ratio nor our liquidity position.
The Company continues to take steps in 2025 to resolve nonperforming assets and improve its overall credit profile. These steps include foreclosures, short sales, pursuit of guarantors and sales of notes. The Company has continued to monitor credit actions and subsequent losses in order to determining the appropriate time period for recognition. Notable credit actions and subsequent losses are presented in the table below, in thousands.
Losses taken by period
AssetType of propertyAction takenBalance
December 31, 2024
2024First
quarter
2025
Second
quarter
2025
Total Losses takenReduction in nonperforming assets
OREOAssisted livingProperty sold
May 2025
$5,434 $(1,472)$— $— $(1,472)$(1,472)$(5,434)
LoansMulti-FamilyCollateral sold
May 2025
3,722 (337)(1,113)— (1,450)(3,722)
LoansMemory careNote sale
June 2025
7,737 — — (3,675)(3,675)(7,737)
LoansAssisted livingCharge off
May 2025
7,798 (7,798)— — (7,798)(7,798)
LoansMulti-FamilyNote sale agreement June 2025
Expected close third quarter 2025
27,354 (2,354)— — (2,354)(2,354)
LoansC&I OperatingCharge off
May 2025
11,292 — — (5,847)(5,847)(5,847)
Total$63,337 $(11,961)$(1,113)$(9,522)$(22,596)$(32,892)