v3.25.2
Loans Receivable, Net
 6 Months Ended
Jun. 30, 2025
Receivables [Abstract]  
Loans Receivable, Net Loans Receivable, Net
Loans receivable, net at June 30, 2025 and December 31, 2024 consisted of the following (in thousands):
June 30,December 31,
20252024
Commercial:
Commercial real estate – investor$5,068,125 $5,287,683 
Commercial and industrial:
Commercial and industrial – real estate914,406 902,219 
Commercial and industrial – non-real estate862,504 647,945 
Total commercial and industrial1,776,910 1,550,164 
Total commercial6,845,035 6,837,847 
Consumer:
Residential real estate3,119,232 3,049,763 
Home equity loans and lines and other consumer (“other consumer”)220,820 230,462 
Total consumer3,340,052 3,280,225 
Total loans receivable10,185,087 10,118,072 
Deferred origination costs, net of fees13,960 10,964 
Allowance for loan credit losses(79,266)(73,607)
Total loans receivable, net$10,119,781 $10,055,429 
The Company categorizes all 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, and current economic trends, among other factors. The Company evaluates risk ratings on an ongoing basis. The Company uses the following definitions for risk ratings:
    Pass: Loans classified as Pass are well protected by the paying capacity and net worth of the borrower.
    Special Mention: Loans classified as Special Mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Company’s credit position at some future date.
    Substandard: Loans classified as Substandard are inadequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged, if any. These loans have a well-defined weakness or weaknesses that jeopardize the collection or 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: Loans classified as Doubtful have all the weaknesses inherent in those classified as Substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable.
The following tables summarize total loans by year of origination, internally assigned credit grades and risk characteristics (in thousands):
202520242023202220212020 and priorRevolving lines of creditTotal
June 30, 2025
Commercial real estate - investor
Pass$93,258 $69,823 $138,809 $1,169,708 $1,256,126 $1,607,826 $624,692 $4,960,242 
Special Mention167 — — 2,958 — 12,053 2,261 17,439 
Substandard15 85 — 24,824 298 47,117 18,105 90,444 
Total commercial real estate - investor93,440 69,908 138,809 1,197,490 1,256,424 1,666,996 645,058 5,068,125 
Commercial and industrial:
Commercial and industrial - real estate
Pass55,126 77,917 60,393 137,081 82,638 446,477 44,194 903,826 
Special Mention— — — — — 777 40 817 
Substandard— — — — — 9,750 13 9,763 
Total commercial and industrial - real estate55,126 77,917 60,393 137,081 82,638 457,004 44,247 914,406 
Commercial and industrial - non-real estate
Pass127,790 166,644 31,272 32,784 9,847 117,635 356,800 842,772 
Special Mention— 188 — — — 193 — 381 
Substandard— 268 4,109 899 704 1,912 11,459 19,351 
Total commercial and industrial - non-real estate127,790 167,100 35,381 33,683 10,551 119,740 368,259 862,504 
Total commercial and industrial182,916 245,017 95,774 170,764 93,189 576,744 412,506 1,776,910 
Residential real estate (1)
Pass189,278 275,774 254,593 532,835 773,862 1,087,893 — 3,114,235 
Special Mention153 255 121 368 3 1,784 — 2,684 
Substandard— 209 62 94 1,017 931 — 2,313 
Total residential real estate189,431 276,238 254,776 533,297 774,882 1,090,608 — 3,119,232 
Other consumer (1)
Pass13,252 25,169 24,847 16,028 15,784 106,456 17,368 218,904 
Special Mention— — — — — 200 — 200 
Substandard— — 191 33 38 1,454 — 1,716 
Total other consumer13,252 25,169 25,038 16,061 15,822 108,110 17,368 220,820 
Total loans$479,039 $616,332 $514,397 $1,917,612 $2,140,317 $3,442,458 $1,074,932 $10,185,087 
(1)For residential real estate and other consumer loans, the Company evaluates credit quality based on the aging status of the loan and by payment activity.
202420232022202120202019 and priorRevolving lines of creditTotal
December 31, 2024
Commercial real estate - investor
Pass$75,225 $140,863 $1,142,790 $1,290,047 $510,906 $1,264,536 $750,607 $5,174,974 
Special Mention15 — 21,285 — — 18,225 4,477 44,002 
Substandard95 8 3,784 — 6,111 44,636 14,073 68,707 
Total commercial real estate - investor75,335 140,871 1,167,859 1,290,047 517,017 1,327,397 769,157 5,287,683 
Commercial and industrial:
Commercial and industrial - real estate
Pass82,104 62,799 140,578 90,720 40,746 442,685 31,776 891,408 
Special Mention— — — — — 2,918 — 2,918 
Substandard— — — — 256 7,503 134 7,893 
Total commercial and industrial - real estate82,104 62,799 140,578 90,720 41,002 453,106 31,910 902,219 
Commercial and industrial - non-real estate
Pass81,867 30,084 35,469 14,276 3,873 180,695 278,217 624,481 
Special Mention— 4,735 — — 235 16 96 5,082 
Substandard— 4,326 1,019 749 — 256 12,032 18,382 
Total commercial and industrial - non-real estate81,867 39,145 36,488 15,025 4,108 180,967 290,345 647,945 
Total commercial and industrial163,971 101,944 177,066 105,745 45,110 634,073 322,255 1,550,164 
Residential real estate (1)
Pass277,009 270,225 547,093 796,790 366,649 783,204 — 3,040,970 
Special Mention— 92 224 449 — 1,476 — 2,241 
Substandard215 415 1,583 445 — 3,894 — 6,552 
Total residential real estate277,224 270,732 548,900 797,684 366,649 788,574 — 3,049,763 
Other consumer (1)
Pass27,316 27,596 17,029 16,511 10,694 107,045 21,991 228,182 
Special Mention— — — 62 — 219 — 281 
Substandard— 97 18 343 — 1,541 — 1,999 
Total other consumer27,316 27,693 17,047 16,916 10,694 108,805 21,991 230,462 
Total loans$543,846 $541,240 $1,910,872 $2,210,392 $939,470 $2,858,849 $1,113,403 $10,118,072 
(1)For residential real estate and other consumer loans, the Company evaluates credit quality based on the aging status of the loan and by payment activity.
An analysis of the allowance for credit losses on loans for the three and six months ended June 30, 2025 and 2024 was as follows (in thousands):
Commercial and Industrial
 Commercial
Real Estate –
Investor		Commercial and Industrial - Real EstateCommercial
and 
Industrial - Non-Real Estate		Residential
Real Estate		Other ConsumerTotal
For the three months ended June 30, 2025
Allowance for credit losses on loans
Balance at beginning of period$33,947 $4,102 $12,837 $26,810 $1,102 $78,798 
Provision (benefit) for credit losses690 (179)1,951 108 116 2,686 
Charge-offs (1,791)— — (370)(254)(2,415)
Recoveries80 11 34 22 50 197 
Balance at end of period$32,926 $3,934 $14,822 $26,570 $1,014 $79,266 
For the three months ended June 30, 2024
Allowance for credit losses on loans
Balance at beginning of period$26,990 $4,251 $7,641 $27,104 $1,187 $67,173 
Provision (benefit) for credit losses2,462 (341)272 642 83 3,118 
Charge-offs (1,600)— — — — (1,600)
Recoveries1 21 2 87 37 148 
Balance at end of period$27,853 $3,931 $7,915 $27,833 $1,307 $68,839 
For the six months ended June 30, 2025
Allowance for credit losses on loans
Balance at beginning of period$30,780 $3,817 $10,471 $27,587 $952 $73,607 
Provision (benefit) for credit losses3,837 103 4,315 51 207 8,513 
Charge-offs (1,846)— — (1,092)(275)(3,213)
Recoveries155 14 36 24 130 359 
Balance at end of period$32,926 $3,934 $14,822 $26,570 $1,014 $79,266 
For the six months ended June 30, 2024
Allowance for credit losses on loans
Balance at beginning of period$27,899 $4,354 $6,867 $27,029 $988 $67,137 
Provision (benefit) for credit losses1,597 (448)1,041 651 662 3,503 
Charge-offs
(1,646)— — — (395)(2,041)
Recoveries3 25 7 153 52 240 
Balance at end of period$27,853 $3,931 $7,915 $27,833 $1,307 $68,839 

The following tables summarize gross charge-offs by vintage (in thousands):
20242023202220212020 and priorTotal
For the three months ended June 30, 2025
Commercial real estate – investor$(180)$(1,564)$— $— $(47)$(1,791)
Residential real estate— — (145)(52)(173)(370)
Other consumer— — — — (254)(254)
Total charge-offs$(180)$(1,564)$(145)$(52)$(474)$(2,415)
For the six months ended June 30, 2025
Commercial real estate – investor $(180)$(1,564)$(30)$(24)$(48)$(1,846)
Residential real estate(68)(55)(255)(344)(370)(1,092)
Other consumer— — — — (275)(275)
Total charge-offs$(248)$(1,619)$(285)$(368)$(693)$(3,213)
20212019 and priorTotal
For the three months ended June 30, 2024
Commercial real estate – investor
$— $(1,600)$(1,600)
Other consumer— — — 
Total charge-offs$— $(1,600)$(1,600)
For the six months ended June 30, 2024
Commercial real estate – investor$(46)$(1,600)$(1,646)
Other consumer— (395)(395)
Total charge-offs$(46)$(1,995)$(2,041)
A loan is considered collateral dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral and, therefore, is classified as non-accruing. At June 30, 2025 and December 31, 2024, the Company had collateral dependent loans with an amortized cost balance as follows: commercial real estate - investor of $15.4 million and $11.8 million, respectively, commercial and industrial - real estate of $4.4 million and $4.8 million, respectively, and commercial and industrial - non-real estate of $286,000 and $32,000, respectively. In addition, the Company had collateral dependent residential and consumer loans with an amortized cost balance of $4.0 million and $8.6 million at June 30, 2025 and December 31, 2024, respectively. 
The following table presents the recorded investment in non-accrual loans, by loan portfolio segment as of June 30, 2025 and December 31, 2024 (in thousands):
June 30,December 31,
20252024
Commercial real estate – investor$20,457 $17,000 
Commercial and industrial:
Commercial and industrial - real estate4,499 4,787 
Commercial and industrial - non-real estate311 32 
Total commercial and industrial4,810 4,819 
Residential real estate (1)
5,318 10,644 
Other consumer (1)
2,926 3,064 
Total non-performing loans$33,511 $35,527 
(1) The six months ended June 30, 2025 included the sale of non-performing residential and consumer loans of $7.3 million.

At June 30, 2025 and December 31, 2024, non-accrual loans were included in the allowance for credit loss calculation and the Company did not recognize or accrue interest income on these loans. At June 30, 2025 and December 31, 2024, there were no loans greater than 90 days past due that were accruing interest.
The following table presents the aging of the recorded investment in past due loans as of June 30, 2025 and December 31, 2024 by loan portfolio segment (in thousands):
30-59
Days
Past Due		60-89
Days
Past Due		90 Days or Greater
Past Due		Total
Past Due		Loans Not
Past Due		Total
June 30, 2025
Commercial real estate – investor $4,830 $3,184 $14,351 $22,365 $5,045,760 $5,068,125 
Commercial and industrial:
Commercial and industrial - real estate— 1,625 287 1,912 912,494 914,406 
Commercial and industrial - non-real estate619 188 307 1,114 861,390 862,504 
Total commercial and industrial619 1,813 594 3,026 1,773,884 1,776,910 
Residential real estate848 2,441 2,313 5,602 3,113,630 3,119,232 
Other consumer906 99 1,716 2,721 218,099 220,820 
Total loans$7,203 $7,537 $18,974 $33,714 $10,151,373 $10,185,087 
December 31, 2024
Commercial real estate – investor$4,624 $8,880 $10,877 $24,381 $5,263,302 $5,287,683 
Commercial and industrial:
Commercial and industrial - real estate941 — 1,392 2,333 899,886 902,219 
Commercial and industrial - non-real estate3 — 16 19 647,926 647,945 
Total commercial and industrial944 — 1,408 2,352 1,547,812 1,550,164 
Residential real estate18,518 2,242 6,551 27,311 3,022,452 3,049,763 
Other consumer1,060 282 1,999 3,341 227,121 230,462 
Total loans$25,146 $11,404 $20,835 $57,385 $10,060,687 $10,118,072 

Loan Modifications to Borrowers Experiencing Financial Difficulty
In accordance with Accounting Standards Update (“ASU”) 2022-02, the Company has modified and may modify in the future certain loans to borrowers experiencing financial difficulty. These modifications may include a reduction in interest rate, an extension in term, principal forgiveness and/or other than insignificant payment delay. Upon the Company’s determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is charged off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount, and the allowance for credit losses is subsequently adjusted by an amount equal to the total loss rate as applied to the reduced amortized cost basis. As of June 30, 2025 and December 31, 2024, loans with modifications to borrowers experiencing financial difficulty totaled $40.1 million and $30.9 million, respectively. There were no outstanding commitments to lend additional funds to such borrowers with loan modifications as of June 30, 2025 or December 31, 2024.
The following table presents loan modifications made to borrowers experiencing financial difficulty during the three and six months ended June 30, 2025 and 2024 (in thousands):
Term ExtensionCombination of Term Extension and Other Than Insignificant Payment DelayTotal% of Total by Loan Portfolio Segment
For the three months ended June 30, 2025
Commercial real estate – investor$— $4,449 $4,449 0.09 %
$— $4,449 $4,449 0.04 %
For the six months ended June 30, 2025
Commercial real estate – investor$5,067 $4,449 $9,516 0.19 %
$5,067 $4,449 $9,516 0.09 %
Term ExtensionInterest Rate ReductionCombination of Term Extension and Interest Rate ReductionOther Than Insignificant Payment DelayTotal% of Total by Loan Portfolio Segment
For the three months ended June 30, 2024
Commercial real estate – investor$— $4,878 $7,000 $— $11,878 0.22 %
$— $4,878 $7,000 $— $11,878 0.12 %
For the six months ended June 30, 2024
Commercial real estate – investor$— $4,878 $7,000 $— $11,878 0.22 %
Commercial and industrial - real estate— — — 2,994 2,994 0.35 
Residential real estate129 — — — 129 — 
Other consumer— — 148 — 148 0.06 
$129 $4,878 $7,148 $2,994 $15,149 0.15 %
The modifications during the periods presented had an insignificant financial effect on the Company.
The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table provides the performance of loans modified to borrowers experiencing financial difficulty during the twelve months ended June 30, 2025 and 2024 (in thousands):
Current60 - 89 Days past due90 Days or Greater past dueTotal
June 30, 2025
Commercial real estate – investor$16,805 $— $— $16,805 
$16,805 $— $— $16,805 
June 30, 2024
Commercial real estate – investor$19,651 $— $— $19,651 
Commercial and industrial - real estate2,945 — — 2,945 
Residential real estate205 — — 205 
Other consumer170 147 — 317 
$22,971 $147 $— $23,118