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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the Quarterly Period Ended March 31, 2025

or

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the Transition Period From To

Commission File Number: 000-30421

HANMI FINANCIAL CORPORATION

(Exact Name of Registrant as Specified in its Charter)

 

Delaware

 

95-4788120

(State or Other Jurisdiction of

 

(I.R.S. Employer

Incorporation or Organization)

 

Identification No.)

 

900 Wilshire Boulevard, Suite 1250

 

Los Angeles, California

 

90017

(Address of Principal Executive Offices)

 

(Zip Code)

(213) 382-2200

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former Name, Former Address and Former Fiscal Year, If Changed Since Last Report)

Securities Registered Pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Common Stock, $0.001 par value

 

HAFC

 

Nasdaq Global Select Market

 

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). Yes No

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

Accelerated filer

Non-accelerated filer

 

Smaller reporting company

 

 

 

 

Emerging Growth Company

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes No

As of April 30, 2025, there were 30,212,095 outstanding shares of the Registrant’s Common Stock.

 

 


 

Hanmi Financial Corporation and Subsidiaries Quarterly Report on Form 10-Q

Three Months Ended March 31, 2025

Table of Contents

 

 

 

Part I – Financial Information

 

 

 

 

 

 

 

Item 1.

 

Financial Statements

 

3

 

 

 

 

 

 

 

Consolidated Balance Sheets at March 31, 2025 (unaudited) and December 31, 2024

 

3

 

 

 

 

 

 

 

Consolidated Statements of Income for the three months ended March 31, 2025 and 2024 (unaudited)

 

4

 

 

 

 

 

 

 

Consolidated Statements of Comprehensive Income for the three months ended March 31, 2025 and 2024 (unaudited)

 

5

 

 

 

 

 

 

 

Consolidated Statements of Changes in Stockholders’ Equity for the three months ended March 31, 2025 and 2024 (unaudited)

 

6

 

 

 

 

 

 

 

Consolidated Statements of Cash Flows for the three months ended March 31, 2025 and 2024 (unaudited)

 

7

 

 

 

 

 

 

 

Notes to Consolidated Financial Statements (unaudited)

 

8

 

 

 

 

 

Item 2.

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

41

 

 

 

 

 

Item 3.

 

Quantitative and Qualitative Disclosures About Market Risk

 

60

 

 

 

 

 

Item 4.

 

Controls and Procedures

 

60

 

 

 

 

 

 

 

Part II – Other Information

 

 

 

 

 

 

 

Item 1.

 

Legal Proceedings

 

61

 

 

 

 

 

Item 1A.

 

Risk Factors

 

61

 

 

 

 

 

Item 2.

 

Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities

 

61

 

 

 

 

 

Item 3.

 

Defaults Upon Senior Securities

 

61

 

 

 

 

 

Item 4.

 

Mine Safety Disclosures

 

61

 

 

 

 

 

Item 5.

 

Other Information

 

61

 

 

 

 

 

Item 6.

 

Exhibits

 

62

 

 

 

Signatures

 

63

 

2


 

Part I — Financial Information

Item 1. Financial Statements

Hanmi Financial Corporation and Subsidiaries

Consolidated Balance Sheets

(in thousands, except share data)

 

 

 

March 31,

 

 

December 31,

 

 

 

2025

 

 

2024

 

 

 

(Unaudited)

 

 

 

 

Assets

 

 

 

 

 

 

Cash and due from banks

 

$

329,003

 

 

$

304,800

 

Securities available for sale, at fair value (amortized cost of $991,234 and $1,004,563 as of March 31, 2025 and December 31, 2024, respectively)

 

 

907,011

 

 

 

905,798

 

Loans held for sale, at the lower of cost or fair value

 

 

11,831

 

 

 

8,579

 

Loans receivable, net of allowance for credit losses of $70,597 and $70,147 as of March 31, 2025 and December 31, 2024, respectively

 

 

6,211,592

 

 

 

6,181,230

 

Accrued interest receivable

 

 

23,536

 

 

 

22,937

 

Premises and equipment, net

 

 

20,866

 

 

 

21,404

 

Customers' liability on acceptances

 

 

552

 

 

 

1,226

 

Servicing assets

 

 

6,422

 

 

 

6,457

 

Goodwill and other intangible assets, net

 

 

11,031

 

 

 

11,031

 

Federal Home Loan Bank ("FHLB") stock, at cost

 

 

16,385

 

 

 

16,385

 

Income tax assets

 

 

38,058

 

 

 

44,901

 

Bank-owned life insurance

 

 

57,476

 

 

 

57,168

 

Prepaid expenses and other assets

 

 

95,272

 

 

 

96,009

 

Total assets

 

$

7,729,035

 

 

$

7,677,925

 

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

Noninterest-bearing

 

$

2,066,659

 

 

$

2,096,634

 

Interest-bearing

 

 

4,552,816

 

 

 

4,339,142

 

Total deposits

 

 

6,619,475

 

 

 

6,435,776

 

Accrued interest payable

 

 

29,646

 

 

 

34,824

 

Bank's liability on acceptances

 

 

552

 

 

 

1,226

 

Borrowings

 

 

117,500

 

 

 

262,500

 

Subordinated debentures

 

 

130,799

 

 

 

130,638

 

Accrued expenses and other liabilities

 

 

79,578

 

 

 

80,787

 

Total liabilities

 

 

6,977,550

 

 

 

6,945,751

 

Stockholders’ equity:

 

 

 

 

 

 

Preferred stock, $0.001 par value; authorized 10,000,000 shares; no shares issued as of March 31, 2025 and December 31, 2024

 

 

 

 

 

 

Common stock, $0.001 par value; authorized 62,500,000 shares; issued 34,265,030 shares (30,233,514 shares outstanding) and 34,151,464 shares (30,195,999 shares outstanding) as of March 31, 2025 and December 31, 2024, respectively

 

 

34

 

 

 

34

 

Additional paid-in capital

 

 

591,942

 

 

 

591,069

 

Accumulated other comprehensive loss, net of tax benefit of $24,320 and $28,576 as of March 31, 2025 and December 31, 2024, respectively

 

 

(60,002

)

 

 

(70,723

)

Retained earnings

 

 

360,289

 

 

 

350,869

 

Less treasury stock; 4,031,516 shares and 3,955,465 shares as of March 31, 2025 and December 31, 2024, respectively

 

 

(140,778

)

 

 

(139,075

)

Total stockholders’ equity

 

 

751,485

 

 

 

732,174

 

Total liabilities and stockholders’ equity

 

$

7,729,035

 

 

$

7,677,925

 

 

See Accompanying Notes to Consolidated Financial Statements (Unaudited)

3


 

Hanmi Financial Corporation and Subsidiaries

Consolidated Statements of Income (Unaudited)

(in thousands, except share and per share data)

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2025

 

 

2024

 

Interest and dividend income:

 

 

 

 

 

 

Interest and fees on loans receivable

 

$

90,887

 

 

$

91,674

 

Interest on securities

 

 

6,169

 

 

 

4,955

 

Dividends on FHLB stock

 

 

360

 

 

 

361

 

Interest on deposits in other banks

 

 

1,841

 

 

 

2,604

 

Total interest and dividend income

 

 

99,257

 

 

 

99,594

 

Interest expense:

 

 

 

 

 

 

Interest on deposits

 

 

40,559

 

 

 

45,638

 

Interest on borrowings

 

 

2,024

 

 

 

1,655

 

Interest on subordinated debentures

 

 

1,582

 

 

 

1,646

 

Total interest expense

 

 

44,165

 

 

 

48,939

 

Net interest income before credit loss expense

 

 

55,092

 

 

 

50,655

 

Credit loss expense

 

 

2,721

 

 

 

227

 

Net interest income after credit loss expense

 

 

52,371

 

 

 

50,428

 

Noninterest income:

 

 

 

 

 

 

Service charges on deposit accounts

 

 

2,217

 

 

 

2,450

 

Trade finance and other service charges and fees

 

 

1,396

 

 

 

1,414

 

Gain on sale of Small Business Administration ("SBA") loans

 

 

2,000

 

 

 

1,482

 

Gain on sale of mortgage loans

 

 

175

 

 

 

 

Other operating income

 

 

1,938

 

 

 

2,387

 

Total noninterest income

 

 

7,726

 

 

 

7,733

 

Noninterest expense:

 

 

 

 

 

 

Salaries and employee benefits

 

 

20,972

 

 

 

21,585

 

Occupancy and equipment

 

 

4,450

 

 

 

4,537

 

Data processing

 

 

3,787

 

 

 

3,551

 

Professional fees

 

 

1,468

 

 

 

1,893

 

Supplies and communications

 

 

517

 

 

 

601

 

Advertising and promotion

 

 

585

 

 

 

907

 

Other operating expenses

 

 

3,205

 

 

 

3,371

 

Total noninterest expense

 

 

34,984

 

 

 

36,445

 

Income before tax

 

 

25,113

 

 

 

21,716

 

Income tax expense

 

 

7,441

 

 

 

6,552

 

Net income

 

$

17,672

 

 

$

15,164

 

Basic earnings per share

 

$

0.59

 

 

$

0.50

 

Diluted earnings per share

 

$

0.58

 

 

$

0.50

 

Weighted-average shares outstanding:

 

 

 

 

 

 

Basic

 

 

29,937,660

 

 

 

30,119,646

 

Diluted

 

 

30,058,248

 

 

 

30,119,646

 

 

See Accompanying Notes to Consolidated Financial Statements (Unaudited)

4


 

Hanmi Financial Corporation and Subsidiaries

Consolidated Statements of Comprehensive Income (Unaudited)

(in thousands)

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2025

 

 

2024

 

 

 

 

 

 

 

 

Net income

 

$

17,672

 

 

$

15,164

 

Other comprehensive income (loss), net of tax:

 

 

 

 

 

 

Unrealized gain (loss):

 

 

 

 

 

 

Unrealized holding gain (loss) on available for sale securities

 

 

14,542

 

 

 

(5,098

)

Unrealized gain (loss) on cash flow hedges

 

 

190

 

 

 

(2,207

)

Unrealized gain (loss)

 

 

14,732

 

 

 

(7,305

)

Income tax benefit (expense) related to other comprehensive income items

 

 

(4,183

)

 

 

2,343

 

Other comprehensive income (loss)

 

 

10,549

 

 

 

(4,962

)

 

 

 

 

 

 

 

Reclassification adjustment for losses included in net income

 

 

245

 

 

 

 

Income tax benefit related to reclassification adjustment

 

 

(73

)

 

 

 

Reclassification adjustment for losses included in net income, net of tax

 

 

172

 

 

 

 

Other comprehensive income (loss), net of tax

 

 

10,721

 

 

 

(4,962

)

Total comprehensive income

 

$

28,393

 

 

$

10,202

 

 

See Accompanying Notes to Consolidated Financial Statements (Unaudited)

5


 

Hanmi Financial Corporation and Subsidiaries

Consolidated Statements of Changes in Stockholders’ Equity (Unaudited)

For the Three Months Ended March 31, 2025 and 2024

(in thousands, except share data)

 

 

 

Common Stock - Number of Shares

 

 

Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

Other

 

 

 

 

 

Treasury

 

 

Total

 

 

 

Shares

 

 

Treasury

 

 

Shares

 

 

Common

 

 

Paid-in

 

 

Comprehensive

 

 

Retained

 

 

Stock,

 

 

Stockholders'

 

 

 

Issued

 

 

Shares

 

 

Outstanding

 

 

Stock

 

 

Capital

 

 

Loss

 

 

Earnings

 

 

at Cost

 

 

Equity

 

Balance at January 1, 2024

 

 

33,918,035

 

 

 

(3,549,380

)

 

 

30,368,655

 

 

$

34

 

 

$

586,912

 

 

$

(71,928

)

 

$

319,048

 

 

$

(132,175

)

 

$

701,891

 

Issuance of awards pursuant to equity incentive plans, net of forfeitures

 

 

39,249

 

 

 

 

 

 

39,249

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

775

 

 

 

 

 

 

 

 

 

 

 

 

775

 

Shares surrendered to satisfy tax liability upon vesting of equity awards

 

 

 

 

 

(31,546

)

 

 

(31,546

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(490

)

 

 

(490

)

Repurchase of common stock

 

 

 

 

 

(100,000

)

 

 

(100,000

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,592

)

 

 

(1,592

)

Cash dividends paid (common stock, $0.25/share)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(7,686

)

 

 

 

 

 

(7,686

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15,164

 

 

 

 

 

 

15,164

 

Change in unrealized gain (loss) on securities available for sale, net of income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3,394

)

 

 

 

 

 

 

 

 

(3,394

)

Change in unrealized gain (loss) on cash flow hedge, net of income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,568

)

 

 

 

 

 

 

 

 

(1,568

)

Balance at March 31, 2024

 

 

33,957,284

 

 

 

(3,680,926

)

 

 

30,276,358

 

 

$

34

 

 

$

587,687

 

 

$

(76,890

)

 

$

326,526

 

 

$

(134,257

)

 

$

703,100

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at January 1, 2025

 

 

34,151,464

 

 

 

(3,955,465

)

 

 

30,195,999

 

 

$

34

 

 

$

591,069

 

 

$

(70,723

)

 

$

350,869

 

 

$

(139,075

)

 

$

732,174

 

Issuance of awards pursuant to equity incentive plans, net of forfeitures

 

 

113,566

 

 

 

 

 

 

113,566

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

873

 

 

 

 

 

 

 

 

 

 

 

 

873

 

Shares surrendered to satisfy tax liability upon vesting of equity awards

 

 

 

 

 

(26,051

)

 

 

(26,051

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(579

)

 

 

(579

)

Repurchase of common stock

 

 

 

 

 

(50,000

)

 

 

(50,000

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,124

)

 

 

(1,124

)

Cash dividends paid (common stock, $0.27/share)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(8,252

)

 

 

 

 

 

(8,252

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

17,672

 

 

 

 

 

 

17,672

 

Change in unrealized gain (loss) on securities available for sale, net of income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10,411

 

 

 

 

 

 

 

 

 

10,411

 

Change in unrealized gain (loss) on cash flow hedge, net of income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

310

 

 

 

 

 

 

 

 

 

310

 

Balance at March 31, 2025

 

 

34,265,030

 

 

 

(4,031,516

)

 

 

30,233,514

 

 

$

34

 

 

$

591,942

 

 

$

(60,002

)

 

$

360,289

 

 

$

(140,778

)

 

$

751,485

 

 

See Accompanying Notes to Consolidated Financial Statements (Unaudited)

 

6


 

Hanmi Financial Corporation and Subsidiaries

Consolidated Statements of Cash Flows (Unaudited)

(in thousands)

 

 

 

Three Months Ended March 31,

 

 

 

2025

 

 

2024

 

Cash flows from operating activities:

 

 

 

 

 

 

Net income

 

$

17,672

 

 

$

15,164

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

1,592

 

 

 

1,604

 

Amortization of servicing assets - net

 

 

692

 

 

 

694

 

Share-based compensation expense

 

 

873

 

 

 

775

 

Credit loss expense

 

 

2,721

 

 

 

227

 

(Gain) loss on sales of SBA loans

 

 

(2,000

)

 

 

(1,482

)

Origination of SBA loans held for sale

 

 

(35,420

)

 

 

(17,632

)

Proceeds from sales of loans

 

 

43,837

 

 

 

26,555

 

(Gain) loss on sales of residential loans

 

 

(175

)

 

 

(443

)

Change in bank-owned life insurance

 

 

(308

)

 

 

(304

)

Change in prepaid expenses and other assets

 

 

1,160

 

 

 

5,564

 

Change in income tax assets

 

 

2,660

 

 

 

1,707

 

Change in accrued interest payable and other liabilities

 

 

(7,460

)

 

 

(2,446

)

Net cash provided by operating activities

 

 

25,844

 

 

 

29,983

 

Cash flows from investing activities:

 

 

 

 

 

 

Purchases of securities available for sale

 

 

(32,466

)

 

 

(38,424

)

Proceeds from matured, called and repayment of securities

 

 

45,141

 

 

 

26,233

 

Purchases of loans receivable

 

 

(34,301

)

 

 

(10,198

)

Proceeds from sales of mortgage loans

 

 

 

 

 

30,427

 

Purchases of premises and equipment

 

 

(263

)

 

 

(794

)

Proceeds from disposition of premises and equipment

 

 

14

 

 

 

 

Change in loans receivable, excluding purchases and sales

 

 

(8,608

)

 

 

(16,729

)

Net cash used in investing activities

 

 

(30,483

)

 

 

(9,485

)

Cash flows from financing activities:

 

 

 

 

 

 

Change in deposits

 

 

183,699

 

 

 

95,486

 

Change in open FHLB advances

 

 

(145,000

)

 

 

(152,500

)

Cash paid for employee vested shares surrendered due to employee tax liability

 

 

(579

)

 

 

(490

)

Repurchase of common stock

 

 

(1,125

)

 

 

(1,594

)

Cash dividends paid

 

 

(8,153

)

 

 

(7,686

)

Net cash provided by (used in) financing activities

 

 

28,842

 

 

 

(66,784

)

Net increase (decrease) in cash and due from banks

 

 

24,203

 

 

 

(46,286

)

Cash and due from banks at beginning of year

 

 

304,800

 

 

 

302,324

 

Cash and due from banks at end of period

 

$

329,003

 

 

$

256,038

 

Supplemental disclosures of cash flow information:

 

 

 

 

 

 

Interest paid

 

$

49,343

 

 

$

50,238

 

Income taxes paid

 

$

550

 

 

$

175

 

Non-cash activities:

 

 

 

 

 

 

Income tax benefit (expense) related to other comprehensive income items

 

$

(4,256

)

 

$

2,343

 

Change in right-of-use asset obtained in exchange for lease liability

 

$

(4,442

)

 

$

(1,873

)

 

See Accompanying Notes to Consolidated Financial Statements (Unaudited)

7


 

Hanmi Financial Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Note 1 — Organization and Basis of Presentation

Hanmi Financial Corporation (“Hanmi Financial,” the “Company,” “we,” “us” or “our”) is a bank holding company whose primary subsidiary is Hanmi Bank (the “Bank”). Our primary operations are related to traditional banking activities, including the acceptance of deposits and the lending and investing of money by the Bank.

In management’s opinion, the accompanying unaudited consolidated financial statements of Hanmi Financial and its subsidiaries reflect all adjustments of a normal and recurring nature that are necessary for a fair presentation of the results for the interim period ended March 31, 2025. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted. The unaudited consolidated financial statements are prepared in conformity with GAAP and in accordance with the instructions to Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission. Operating results for the three-month periods ended March 31, 2025 are not necessarily indicative of the results that may be expected for the year ended December 31, 2025 or for any other period. The interim information should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2024 (the “2024 Annual Report on Form 10-K”).

The preparation of interim unaudited consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. These estimates and assumptions affect the amounts reported in the unaudited financial statements and disclosures provided, and actual results could differ.

Descriptions of our significant accounting policies are included in Note 1 - Summary of Significant Accounting Policies in the Notes to Consolidated Financial Statements in the 2024 Annual Report on Form 10-K.

Effective January 1, 2025, the Company changed its methodology for estimating expected credit losses on its loan portfolio in accordance with Accounting Standards Update ("ASU") 2016-23, Financial Instruments – Credit Losses. Previously, the Company primarily used a Probability of Default / Loss Given Default (PD/LGD) model to determine the allowance for credit losses. Following a periodic review of its credit loss estimation process, the Company concluded that a historical loss rate approach, adjusted for current conditions and reasonable and supportable forecasts, more appropriately reflects the expected credit losses for its loan portfolio. This change is considered a change in accounting estimate resulting from a change in methodology and assumptions, and is accounted for prospectively in accordance with ASC 250-10-45-17 through 45-18.

The change in methodology had an immaterial impact to the Company’s operating results and financial condition. The provision for credit losses for the quarter ended March 31, 2025 reflects this change in estimate. Management believes the revised approach enhances the accuracy and relevance of its allowance for credit losses by aligning the methodology more closely with the Company’s historical experience, the nature of its loan portfolio, and expectations for future economic conditions.

Accounting Standards Adopted in 2025

ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures: In December 2023, the FASB issued ASU 2023-09 to enhance the transparency and usefulness of income tax disclosures primarily related to income tax rate reconciliation and income tax information. The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024. The adoption of ASU 2023-09 did not have a material effect on the Company’s operating results or financial condition.

Recently Issued Accounting Standards Not Yet Effective

ASU 2024-03, Income Statement Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40), as amended by ASU 2025-01, Clarifying the Effective Date: In November 2024, the Financial Accounting Standards Board (“FASB”) issued ASU 2024-03 to require additional information about specific expense categories in the financial statement notes at interim and annual reporting periods. The amendments in this ASU do not change or remove current expense disclosure requirements. The amendments affect where the information appears in the financial statement notes. ASU 2025-01 amends the changes in ASU 2024-03 to be effective for fiscal years beginning after December 15, 2026. The adoption of ASU 2024-03 is not expected to have a material effect on the Company’s operating results or financial condition.

 

8


 

 

Note 2 — Securities

The following is a summary of securities available for sale as of the dates indicated:

 

 

 

 

 

 

Gross

 

 

Gross

 

 

Estimated

 

 

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

Fair

 

 

 

Cost

 

 

Gain

 

 

Loss

 

 

Value

 

 

 

(in thousands)

 

March 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

$

89,726

 

 

$

281

 

 

$

(376

)

 

$

89,631

 

U.S. government agency and sponsored agency obligations:

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities - residential

 

 

439,368

 

 

 

471

 

 

 

(52,001

)

 

 

387,838

 

Mortgage-backed securities - commercial

 

 

74,491

 

 

 

92

 

 

 

(12,031

)

 

 

62,552

 

Collateralized mortgage obligations

 

 

195,041

 

 

 

1,271

 

 

 

(7,783

)

 

 

188,529

 

Debt securities

 

 

116,783

 

 

 

12

 

 

 

(2,891

)

 

 

113,904

 

Total U.S. government agency and sponsored agency obligations

 

 

825,683

 

 

 

1,846

 

 

 

(74,706

)

 

 

752,823

 

Municipal bonds-tax exempt

 

 

75,825

 

 

 

 

 

 

(11,268

)

 

 

64,557

 

Total securities available for sale

 

$

991,234

 

 

$

2,127

 

 

$

(86,350

)

 

$

907,011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

$

89,208

 

 

$

242

 

 

$

(521

)

 

$

88,929

 

U.S. government agency and sponsored agency obligations:

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities - residential

 

 

453,993

 

 

 

222

 

 

 

(61,643

)

 

 

392,572

 

Mortgage-backed securities - commercial

 

 

75,947

 

 

 

24

 

 

 

(13,055

)

 

 

62,916

 

Collateralized mortgage obligations

 

 

182,553

 

 

 

404

 

 

 

(9,401

)

 

 

173,556

 

Debt securities

 

 

126,776

 

 

 

9

 

 

 

(3,969

)

 

 

122,816

 

Total U.S. government agency and sponsored agency obligations

 

 

839,269

 

 

 

659

 

 

 

(88,068

)

 

 

751,860

 

Municipal bonds-tax exempt

 

 

76,086

 

 

 

 

 

 

(11,077

)

 

 

65,009

 

Total securities available for sale

 

$

1,004,563

 

 

$

901

 

 

$

(99,666

)

 

$

905,798

 

 

The amortized cost and estimated fair value of securities as of March 31, 2025 and December 31, 2024, by contractual or expected maturity, are shown below. Collateralized mortgage obligations are included in the table shown below based on their expected maturities. All other securities are included based on their contractual maturities.

 

 

 

March 31, 2025

 

 

December 31, 2024

 

 

 

Available for Sale

 

 

Available for Sale

 

 

 

Amortized

 

 

Estimated

 

 

Amortized

 

 

Estimated

 

 

 

Cost

 

 

Fair Value

 

 

Cost

 

 

Fair Value

 

 

 

(in thousands)

 

Within one year

 

$

95,434

 

 

$

94,924

 

 

$

93,251

 

 

$

92,646

 

Over one year through five years

 

 

125,499

 

 

 

122,995

 

 

 

133,408

 

 

 

129,556

 

Over five years through ten years

 

 

87,294

 

 

 

77,660

 

 

 

90,772

 

 

 

81,833

 

Over ten years

 

 

683,007

 

 

 

611,432

 

 

 

687,132

 

 

 

601,763

 

Total

 

$

991,234

 

 

$

907,011

 

 

$

1,004,563

 

 

$

905,798

 

 

9


 

 

The following table summarizes debt securities available for sale in an unrealized loss position for which an allowance for credit losses has not been recorded at March 31, 2025 or December 31, 2024, aggregated by major security type and length of time in a continuous unrealized loss position:

 

 

 

Holding Period

 

 

 

Less than 12 Months

 

 

12 Months or More

 

 

Total

 

 

 

Gross

 

 

Estimated

 

 

Number

 

 

Gross

 

 

Estimated

 

 

Number

 

 

Gross

 

 

Estimated

 

 

Number

 

 

 

Unrealized

 

 

Fair

 

 

of

 

 

Unrealized

 

 

Fair

 

 

of

 

 

Unrealized

 

 

Fair

 

 

of

 

 

 

Loss

 

 

Value

 

 

Securities

 

 

Loss

 

 

Value

 

 

Securities

 

 

Loss

 

 

Value

 

 

Securities

 

 

 

(in thousands, except number of securities)

 

March 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

$

(17

)

 

$

8,063

 

 

 

3

 

 

$

(359

)

 

$

9,876

 

 

 

3

 

 

$

(376

)

 

$

17,939

 

 

 

6

 

U.S. government agency and sponsored agency obligations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities - residential

 

 

(102

)

 

 

8,788

 

 

 

5

 

 

 

(51,899

)

 

 

348,252

 

 

 

114

 

 

 

(52,001

)

 

 

357,040

 

 

 

119

 

Mortgage-backed securities - commercial

 

 

(246

)

 

 

14,745

 

 

 

4

 

 

 

(11,785

)

 

 

41,463

 

 

 

14

 

 

 

(12,031

)

 

 

56,208

 

 

 

18

 

Collateralized mortgage obligations

 

 

(34

)

 

 

20,494

 

 

 

5

 

 

 

(7,749

)

 

 

52,260

 

 

 

23

 

 

 

(7,783

)

 

 

72,754

 

 

 

28

 

Debt securities

 

 

 

 

 

 

 

 

 

 

 

(2,891

)

 

 

98,658

 

 

 

19

 

 

 

(2,891

)

 

 

98,658

 

 

 

19

 

Total U.S. government agency and sponsored agency obligations

 

 

(382

)

 

 

44,027

 

 

 

14

 

 

 

(74,324

)

 

 

540,633

 

 

 

170

 

 

 

(74,706

)

 

 

584,660

 

 

 

184

 

Municipal bonds-tax exempt

 

 

 

 

 

 

 

 

 

 

 

(11,268

)

 

 

64,558

 

 

 

19

 

 

 

(11,268

)

 

 

64,558

 

 

 

19

 

Total

 

$

(399

)

 

$

52,090

 

 

 

17

 

 

$

(85,951

)

 

$

615,067

 

 

 

192

 

 

$

(86,350

)

 

$

667,157

 

 

 

209

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

$

(61

)

 

$

13,603

 

 

 

6

 

 

$

(460

)

 

$

9,771

 

 

 

3

 

 

$

(521

)

 

$

23,374

 

 

 

9

 

U.S. government agency and sponsored agency obligations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities - residential

 

 

(271

)

 

 

23,276

 

 

 

10

 

 

 

(61,372

)

 

 

351,793

 

 

 

114

 

 

 

(61,643

)

 

 

375,069

 

 

 

124

 

Mortgage-backed securities - commercial

 

 

(447

)

 

 

19,092

 

 

 

5

 

 

 

(12,608

)

 

 

41,817

 

 

 

14

 

 

 

(13,055

)

 

 

60,909

 

 

 

19

 

Collateralized mortgage obligations

 

 

(645

)

 

 

76,963

 

 

 

18

 

 

 

(8,756

)

 

 

54,020

 

 

 

24

 

 

 

(9,401

)

 

 

130,983

 

 

 

42

 

Debt securities

 

 

(23

)

 

 

11,712

 

 

 

3

 

 

 

(3,946

)

 

 

107,595

 

 

 

21

 

 

 

(3,969

)

 

 

119,307

 

 

 

24

 

Total U.S. government agency and sponsored agency obligations

 

 

(1,386

)

 

 

131,043

 

 

 

36

 

 

 

(86,682

)

 

 

555,225

 

 

 

173

 

 

 

(88,068

)

 

 

686,268

 

 

 

209

 

Municipal bonds-tax exempt

 

 

 

 

 

 

 

 

 

 

 

(11,077

)

 

 

65,009

 

 

 

19

 

 

 

(11,077

)

 

 

65,009

 

 

 

19

 

Total

 

$

(1,447

)

 

$

144,646

 

 

 

42

 

 

$

(98,219

)

 

$

630,005

 

 

 

195

 

 

$

(99,666

)

 

$

774,651

 

 

 

237

 

 

The Company evaluates its available for sale securities portfolio for impairment on a quarterly basis. The Company did not recognize unrealized losses in income because it has the ability and the intent to hold and does not expect to be required to sell these securities until the recovery of their cost basis. The quarterly impairment assessment considers the changes in the credit quality of these debt securities since acquisition and the likelihood of a credit loss occurring over the life of the securities. If a credit loss is expected to occur, an allowance is established and a corresponding credit loss is recognized. Based on its analysis, as of March 31, 2025, the Company determined that no credit losses were expected to be realized on the tax-exempt municipal bond portfolio. The remainder of the portfolio consists of U.S. Treasury obligations, U.S. government agency securities, and U.S. government sponsored agency securities, all of which have the backing of the U.S. government, and are therefore not expected to incur credit losses.

 

There were no sales of securities during the three months ended March 31, 2025 and March 31, 2024.

Securities available for sale with market values of $28.9 million and $29.4 million as of March 31, 2025 and December 31, 2024, respectively, were pledged to secure borrowings from the Federal Reserve Bank (“FRB”) Discount Window.

At March 31, 2025, there were no holdings of securities of any one issuer, other than the U.S. government and its agencies, in an amount greater than 10% of stockholders’ equity.

10


 

Note 3 — Loans

Loans Receivable

Loans consisted of the following as of the dates indicated:

 

 

 

March 31, 2025

 

 

December 31, 2024

 

 

 

(in thousands)

 

Real estate loans:

 

 

 

 

 

 

Commercial property

 

 

 

 

 

 

Retail

 

$

1,109,097

 

 

$

1,068,978

 

Hospitality

 

 

845,275

 

 

 

848,134

 

Office

 

 

563,957

 

 

 

568,861

 

Other (1)

 

 

1,378,746

 

 

 

1,385,051

 

Total commercial property loans

 

 

3,897,075

 

 

 

3,871,024

 

Construction

 

 

78,576

 

 

 

78,598

 

Residential (2)

 

 

979,536

 

 

 

951,302

 

Total real estate loans

 

 

4,955,187

 

 

 

4,900,924

 

Commercial and industrial loans

 

 

854,406

 

 

 

863,431

 

Equipment financing agreements

 

 

472,596

 

 

 

487,022

 

Loans receivable

 

 

6,282,189

 

 

 

6,251,377

 

Allowance for credit losses

 

 

(70,597

)

 

 

(70,147

)

Loans receivable, net

 

$

6,211,592

 

 

$

6,181,230

 

 

(1)
Includes mixed-use, multifamily, industrial, gas stations, faith-based facilities, and medical; all other property types represent less than one percent of total loans receivable.
(2)
Includes $1.2 million and $1.3 million of home equity loans and lines, and $6.2 million and $4.1 million of personal loans at March 31, 2025 and December 31, 2024, respectively.

 

Accrued interest on loans was $20.3 million and $19.1 million at March 31, 2025 and December 31, 2024, respectively.

At March 31, 2025 and December 31, 2024, loans with carrying values of $2.44 billion and $2.46 billion, respectively, were pledged to secure advances from the FHLB.

Loans Held for Sale

The following is the activity for loans held for sale for the following periods:

 

 

 

Real Estate

 

 

Commercial and Industrial

 

 

Total

 

 

 

(in thousands)

 

Three months ended March 31, 2025

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

3,994

 

 

$

4,585

 

 

$

8,579

 

Originations and transfers

 

 

18,615

 

 

 

16,805

 

 

 

35,420

 

Sales

 

 

(17,594

)

 

 

(14,570

)

 

 

(32,164

)

Principal paydowns and amortization

 

 

 

 

 

(4

)

 

 

(4

)

Balance at end of period

 

$

5,015

 

 

$

6,816

 

 

$

11,831

 

 

 

 

 

 

 

 

 

 

 

Three months ended March 31, 2024

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

8,792

 

 

$

3,221

 

 

$

12,013

 

Originations and transfers

 

 

9,614

 

 

 

8,018

 

 

 

17,632

 

Sales

 

 

(16,900

)

 

 

(8,687

)

 

 

(25,587

)

Principal paydowns and amortization

 

 

(52

)

 

 

(7

)

 

 

(59

)

Balance at end of period

 

$

1,454

 

 

$

2,545

 

 

$

3,999

 

 

11


 

 

 

The following table presents loans purchased by portfolio segment for the following periods:

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2025

 

 

2024

 

 

 

(in thousands)

 

Commercial real estate

 

$

15,113

 

 

$

274

 

Commercial and industrial

 

 

9,203

 

 

 

9,924

 

Residential real estate

 

 

9,985

 

 

 

 

Total

 

$

34,301

 

 

$

10,198

 

 

Allowance for Credit Losses

 

Effective January 1, 2025, we transitioned to a new allowance for credit losses (“ACL”) model to perform our ACL analysis. Part of the transition to the new model, in addition to the factors previously mentioned, includes a change in our methodology on commercial and industrial, commercial real estate, and residential loans. The change in models did not result in a material change in our ACL as of January 1, 2025. The table below includes in credit loss expense for the three months ended March 31, 2025 the effect of the ACL model change of $1.4 million.

 

The following table details the information on the allowance for credit losses by portfolio segment for the following periods:

 

 

 

Real Estate

 

 

Commercial and Industrial

 

 

Equipment Financing Agreements

 

 

Total

 

 

 

(in thousands)

 

Three months ended March 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

45,099

 

 

$

10,006

 

 

$

15,042

 

 

$

70,147

 

Charge-offs

 

 

(169

)

 

 

(222

)

 

 

(2,798

)

 

 

(3,189

)

Recoveries

 

 

424

 

 

 

36

 

 

 

783

 

 

 

1,243

 

Credit loss expense (recovery)

 

 

5,948

 

 

 

(3,578

)

 

 

26

 

 

 

2,396

 

Ending balance

 

$

51,302

 

 

$

6,242

 

 

$

13,053

 

 

$

70,597

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended March 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

45,499

 

 

$

10,257

 

 

$

13,706

 

 

$

69,462

 

Charge-offs

 

 

 

 

 

(155

)

 

 

(1,968

)

 

 

(2,123

)

Recoveries

 

 

46

 

 

 

58

 

 

 

423

 

 

 

527

 

Credit loss expense (recovery)

 

 

(2,961

)

 

 

1,676

 

 

 

1,689

 

 

 

404

 

Ending balance

 

$

42,584

 

 

$

11,836

 

 

$

13,850

 

 

$

68,270

 

 

 

The table below presents the allowance for credit losses by portfolio segment as a percentage of the total allowance for credit losses and loans by portfolio segment as a percentage of the aggregate investment of loans receivable as of:

 

 

 

March 31, 2025

 

 

December 31, 2024

 

 

 

Allowance Amount

 

 

Percentage of Total Allowance

 

 

Total Loans

 

 

Percentage of Total Loans

 

 

Allowance Amount

 

 

Percentage of Total Allowance

 

 

Total Loans

 

 

Percentage of Total Loans

 

 

 

(dollars in thousands)

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial property

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail

 

$

9,404

 

 

 

13.3

%

 

$

1,109,097

 

 

 

17.7

%

 

$

10,171

 

 

 

14.5

%

 

$

1,068,978

 

 

 

17.1

%

Hospitality

 

 

7,128

 

 

 

10.1

 

 

 

845,275

 

 

 

13.5

 

 

 

15,302

 

 

 

21.8

 

 

 

848,134

 

 

 

13.6

 

Office

 

 

11,536

 

 

 

16.3

 

 

 

563,957

 

 

 

9.0

 

 

 

3,935

 

 

 

5.6

 

 

 

568,861

 

 

 

9.1

 

Other

 

 

12,278

 

 

 

17.5

 

 

 

1,378,746

 

 

 

21.8

 

 

 

8,243

 

 

 

11.8

 

 

 

1,385,051

 

 

 

22.2

 

Total commercial property loans

 

 

40,346

 

 

 

57.2

 

 

 

3,897,075

 

 

 

62.0

 

 

 

37,651

 

 

 

53.7

 

 

 

3,871,024

 

 

 

62.0

 

Construction

 

 

1,021

 

 

 

1.4

 

 

 

78,576

 

 

 

1.3

 

 

 

1,664

 

 

 

2.4

 

 

 

78,598

 

 

 

1.3

 

Residential

 

 

9,936

 

 

 

14.2

 

 

 

979,536

 

 

 

15.7

 

 

 

5,784

 

 

 

8.2

 

 

 

951,302

 

 

 

15.2

 

Total real estate loans

 

 

51,303

 

 

 

72.8

 

 

 

4,955,187

 

 

 

79.0

 

 

 

45,099

 

 

 

64.3

 

 

 

4,900,924

 

 

 

78.5

 

Commercial and industrial loans

 

 

6,242

 

 

 

8.7

 

 

 

854,406

 

 

 

13.5

 

 

 

10,006

 

 

 

14.3

 

 

 

863,431

 

 

 

13.8

 

Equipment financing agreements

 

 

13,052

 

 

 

18.5

 

 

 

472,596

 

 

 

7.5

 

 

 

15,042

 

 

 

21.4

 

 

 

487,022

 

 

 

7.7

 

Total

 

$

70,597

 

 

 

100.0

%

 

$

6,282,189

 

 

 

100.0

%

 

$

70,147

 

 

 

100.0

%

 

$

6,251,377

 

 

 

100.0

%

 

12


 

The following table represents the amortized cost basis of collateral-dependent loans by class of loans, for which repayment is expected to be obtained through the sale of the underlying collateral, as of:

 

 

 

March 31, 2025

 

 

December 31, 2024

 

 

 

(in thousands)

 

Real estate loans:

 

 

 

 

 

 

Commercial property

 

 

 

 

 

 

Retail

 

$

576

 

 

$

1,377

 

Hospitality

 

 

2,037

 

 

 

215

 

Office

 

 

20,000

 

 

 

 

Total commercial property loans

 

 

22,613

 

 

 

1,592

 

Residential

 

 

2,819

 

 

 

1,875

 

Total real estate loans

 

 

25,432

 

 

 

3,467

 

Total

 

$

25,432

 

 

$

3,499

 

Loan Quality Indicators

As part of the on-going monitoring of the quality of our loans portfolio, we utilize an internal loan grading system to identify credit risk and assign an appropriate grade (from 1 to 8) for each loan in our portfolio. Third-party loan reviews are conducted annually on a sample basis. Additional adjustments are made when determined to be necessary. The loan grade definitions are as follows:

Pass and Pass-Watch: Pass and Pass-Watch loans, grades (1-4), are in compliance with the Bank’s credit policy and regulatory requirements, and do not exhibit any potential or defined weaknesses as defined under “Special Mention”, “Substandard” or “Doubtful.” This category is the strongest level of the Bank’s loan grading system. It consists of all performing loans with no identified credit weaknesses. It includes cash and stock/security secured loans or other investment grade loans.

Special Mention: A Special Mention loan, grade (5), has potential weaknesses that deserve management’s close attention. If not corrected, these potential weaknesses may result in deterioration of the repayment of the debt and result in a Substandard classification. Loans that have significant actual, not potential, weaknesses are considered more severely classified.

Substandard: A Substandard loan, grade (6), has a well-defined weakness that jeopardizes the liquidation of the debt. A loan graded Substandard is not protected by the sound worth and paying capacity of the borrower, or of the value and type of collateral pledged. With a Substandard loan, there is a distinct possibility that the Bank will sustain some loss if the weaknesses or deficiencies are not corrected.

Doubtful: A Doubtful loan, grade (7), is one that has critical weaknesses that would make the collection or liquidation of the full amount due improbable. However, there may be pending events which may work to strengthen the loan, and therefore the amount or timing of a possible loss cannot be determined at the current time.

Loss: A loan classified as Loss, grade (8), is considered uncollectible and of such little value that their continuance as active bank assets is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this asset even though partial recovery may be possible in the future. Loans classified as Loss will be charged off in a timely manner.

Under regulatory guidance, loans graded special mention or worse are considered criticized loans, and loans graded substandard or worse are considered classified loans.

13


 

Loans by Vintage Year and Risk Rating

 

 

 

Term Loans

 

 

 

 

 

 

 

 

 

Amortized Cost Basis by Origination Year (1)

 

 

 

 

 

 

 

 

 

2025

 

 

2024

 

 

2023

 

 

2022

 

 

2021

 

 

Prior

 

 

Revolving
Loans
Amortized
Cost Basis

 

 

Total

 

 

 

(in thousands)

 

March 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial property

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

`

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass / Pass-Watch

 

$

324,165

 

 

$

440,685

 

 

$

526,730

 

 

$

903,055

 

 

$

780,169

 

 

$

687,369

 

 

$

93,960

 

 

$

3,756,133

 

Special Mention

 

 

 

 

 

29,820

 

 

 

 

 

 

148

 

 

 

 

 

 

75,959

 

 

 

 

 

 

105,927

 

Classified

 

 

111

 

 

 

361

 

 

 

 

 

 

24,914

 

 

 

3,131

 

 

 

6,498

 

 

 

 

 

 

35,015

 

Total commercial property

 

 

324,276

 

 

 

470,866

 

 

 

526,730

 

 

 

928,117

 

 

 

783,300

 

 

 

769,826

 

 

 

93,960

 

 

 

3,897,075

 

YTD gross charge-offs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

169

 

 

 

 

 

 

169

 

YTD net charge-offs (recoveries)

 

 

(1

)

 

 

 

 

 

 

 

 

(274

)

 

 

 

 

 

21

 

 

 

 

 

 

(254

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass / Pass-Watch

 

 

15,014

 

 

 

55,564

 

 

 

7,998

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

78,576

 

Special Mention

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Classified

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total construction

 

 

15,014

 

 

 

55,564

 

 

 

7,998

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

78,576

 

YTD gross charge-offs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YTD net charge-offs (recoveries)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass / Pass-Watch

 

 

53,928

 

 

 

125,045

 

 

 

185,407

 

 

 

349,962

 

 

 

143,387

 

 

 

113,205

 

 

 

6,583

 

 

 

977,517

 

Special Mention

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

251

 

 

 

251

 

Classified

 

 

 

 

 

 

 

 

 

 

 

966

 

 

 

 

 

 

802

 

 

 

 

 

 

1,768

 

Total residential

 

 

53,928

 

 

 

125,045

 

 

 

185,407

 

 

 

350,928

 

 

 

143,387

 

 

 

114,007

 

 

 

6,834

 

 

 

979,536

 

YTD gross charge-offs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YTD net charge-offs (recoveries)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1

)

 

 

 

 

 

(1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total real estate loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass / Pass-Watch

 

 

393,107

 

 

 

621,294

 

 

 

720,135

 

 

 

1,253,017

 

 

 

923,556

 

 

 

800,574

 

 

 

100,542

 

 

 

4,812,225

 

Special Mention

 

 

 

 

 

29,820

 

 

 

 

 

 

148

 

 

 

 

 

 

75,959

 

 

 

252

 

 

 

106,179

 

Classified

 

 

111

 

 

 

361

 

 

 

 

 

 

25,880

 

 

 

3,131

 

 

 

7,300

 

 

 

 

 

 

36,783

 

Total real estate loans

 

 

393,218

 

 

 

651,475

 

 

 

720,135

 

 

 

1,279,045

 

 

 

926,687

 

 

 

883,833

 

 

 

100,794

 

 

 

4,955,187

 

YTD gross charge-offs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

169

 

 

 

 

 

 

169

 

YTD net charge-offs (recoveries)

 

 

(1

)

 

 

 

 

 

 

 

 

(274

)

 

 

 

 

 

20

 

 

 

 

 

 

(255

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass / Pass-Watch

 

 

138,971

 

 

 

211,289

 

 

 

48,519

 

 

 

72,953

 

 

 

31,519

 

 

 

23,118

 

 

 

314,381

 

 

 

840,750

 

Special Mention

 

 

 

 

 

 

 

 

 

 

 

12,201

 

 

 

 

 

 

 

 

 

 

 

 

12,201

 

Classified

 

 

 

 

 

131

 

 

 

 

 

 

118

 

 

 

82

 

 

 

113

 

 

 

1,011

 

 

 

1,455

 

Total commercial and industrial loans

 

 

138,971

 

 

 

211,420

 

 

 

48,519

 

 

 

85,272

 

 

 

31,601

 

 

 

23,231

 

 

 

315,392

 

 

 

854,406

 

YTD gross charge-offs

 

 

 

 

 

 

 

 

 

 

 

88

 

 

 

 

 

 

134

 

 

 

 

 

 

222

 

YTD net charge-offs (recoveries)

 

 

 

 

 

 

 

 

(5

)

 

 

80

 

 

 

 

 

 

111

 

 

 

 

 

 

186

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equipment financing agreements:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass / Pass-Watch

 

 

47,857

 

 

 

126,273

 

 

 

128,890

 

 

 

111,146

 

 

 

42,505

 

 

 

7,644

 

 

 

 

 

 

464,315

 

Special Mention

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Classified

 

 

 

 

 

271

 

 

 

2,155

 

 

 

3,934

 

 

 

1,681

 

 

 

240

 

 

 

 

 

 

8,281

 

Total equipment financing agreements

 

 

47,857

 

 

 

126,544

 

 

 

131,045

 

 

 

115,080

 

 

 

44,186

 

 

 

7,884

 

 

 

 

 

 

472,596

 

YTD gross charge-offs

 

 

 

 

 

220

 

 

 

760

 

 

 

1,234

 

 

 

506

 

 

 

78

 

 

 

 

 

 

2,798

 

YTD net charge-offs (recoveries)

 

 

 

 

 

220

 

 

 

604

 

 

 

927

 

 

 

275

 

 

 

(9

)

 

 

(2

)

 

 

2,015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans receivable:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass / Pass-Watch

 

 

579,935

 

 

 

958,856

 

 

 

897,544

 

 

 

1,437,116

 

 

 

997,580

 

 

 

831,336

 

 

 

414,923

 

 

 

6,117,290

 

Special Mention

 

 

 

 

 

29,820

 

 

 

 

 

 

12,349

 

 

 

 

 

 

75,959

 

 

 

252

 

 

 

118,380

 

Classified

 

 

111

 

 

 

763

 

 

 

2,155

 

 

 

29,932

 

 

 

4,894

 

 

 

7,653

 

 

 

1,011

 

 

 

46,519

 

Total loans receivable

 

$

580,046

 

 

$

989,439

 

 

$

899,699

 

 

$

1,479,397

 

 

$

1,002,474

 

 

$

914,948

 

 

$

416,186

 

 

$

6,282,189

 

YTD gross charge-offs

 

 

 

 

 

220

 

 

 

760

 

 

 

1,322

 

 

 

506

 

 

 

381

 

 

 

 

 

 

3,189

 

YTD net charge-offs (recoveries)

 

 

(1

)

 

 

220

 

 

 

599

 

 

 

733

 

 

 

275

 

 

 

122

 

 

 

(2

)

 

 

1,946

 

 

(1)
Includes extensions, renewals, or modifications of credit contracts, which consist of a new credit decision.

14


 

 

 

 

Term Loans

 

 

 

 

 

 

 

 

 

Amortized Cost Basis by Origination Year (1)

 

 

 

 

 

 

 

 

 

2024

 

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

Prior

 

 

Revolving
Loans
Amortized
Cost Basis

 

 

Total

 

 

 

 

 

December 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial property

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass / Pass-Watch

 

$

533,989

 

 

$

558,271

 

 

$

930,190

 

 

$

800,938

 

 

$

553,490

 

 

$

271,209

 

 

$

101,277

 

 

$

3,749,364

 

Special Mention

 

 

29,935

 

 

 

 

 

 

1,009

 

 

 

 

 

 

 

 

 

76,524

 

 

 

 

 

 

107,468

 

Classified

 

 

541

 

 

 

 

 

 

5,658

 

 

 

3,151

 

 

 

72

 

 

 

4,770

 

 

 

 

 

 

14,192

 

Total commercial property

 

 

564,465

 

 

 

558,271

 

 

 

936,857

 

 

 

804,089

 

 

 

553,562

 

 

 

352,503

 

 

 

101,277

 

 

 

3,871,024

 

YTD gross charge-offs

 

 

 

 

 

 

 

 

274

 

 

 

 

 

 

 

 

 

136

 

 

 

 

 

 

410

 

YTD net charge-offs (recoveries)

 

 

 

 

 

 

 

 

274

 

 

 

 

 

 

(21

)

 

 

(704

)

 

 

 

 

 

(451

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass / Pass-Watch

 

 

70,601

 

 

 

7,997

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

78,598

 

Special Mention

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Classified

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total construction

 

 

70,601

 

 

 

7,997

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

78,598

 

YTD gross charge-offs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,133

 

 

 

 

 

 

 

 

 

1,133

 

YTD net charge-offs (recoveries)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,132

 

 

 

(1,358

)

 

 

 

 

 

(226

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass / Pass-Watch

 

 

127,986

 

 

 

200,316

 

 

 

355,134

 

 

 

145,310

 

 

 

11,164

 

 

 

105,406

 

 

 

4,436

 

 

 

949,752

 

Special Mention

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

251

 

 

 

251

 

Classified

 

 

 

 

 

 

 

 

983

 

 

 

 

 

 

316

 

 

 

 

 

 

 

 

 

1,299

 

Total residential

 

 

127,986

 

 

 

200,316

 

 

 

356,117

 

 

 

145,310

 

 

 

11,480

 

 

 

105,406

 

 

 

4,687

 

 

 

951,302

 

YTD gross charge-offs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YTD net charge-offs (recoveries)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3

)

 

 

 

 

 

(3

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total real estate loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass / Pass-Watch

 

 

732,576

 

 

 

766,584

 

 

 

1,285,324

 

 

 

946,248

 

 

 

564,654

 

 

 

376,615

 

 

 

105,713

 

 

 

4,777,714

 

Special Mention

 

 

29,935

 

 

 

 

 

 

1,009

 

 

 

 

 

 

 

 

 

76,524

 

 

 

251

 

 

 

107,719

 

Classified

 

 

541

 

 

 

 

 

 

6,641

 

 

 

3,151

 

 

 

388

 

 

 

4,770

 

 

 

 

 

 

15,491

 

Total real estate loans

 

 

763,052

 

 

 

766,584

 

 

 

1,292,974

 

 

 

949,399

 

 

 

565,042

 

 

 

457,909

 

 

 

105,964

 

 

 

4,900,924

 

YTD gross charge-offs

 

 

 

 

 

 

 

 

274

 

 

 

 

 

 

1,133

 

 

 

136

 

 

 

 

 

 

1,543

 

YTD net charge-offs (recoveries)

 

 

 

 

 

 

 

 

274

 

 

 

 

 

 

1,111

 

 

 

(2,065

)

 

 

 

 

 

(680

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass / Pass-Watch

 

 

271,655

 

 

 

59,453

 

 

 

94,385

 

 

 

32,226

 

 

 

12,761

 

 

 

13,360

 

 

 

346,001

 

 

 

829,841

 

Special Mention

 

 

19,473

 

 

 

 

 

 

12,401

 

 

 

 

 

 

 

 

 

20

 

 

 

 

 

 

31,894

 

Classified

 

 

 

 

 

(5

)

 

 

196

 

 

 

102

 

 

 

 

 

 

215

 

 

 

1,188

 

 

 

1,696

 

Total commercial and industrial loans

 

 

291,128

 

 

 

59,448

 

 

 

106,982

 

 

 

32,328

 

 

 

12,761

 

 

 

13,595

 

 

 

347,189

 

 

 

863,431

 

YTD gross charge-offs

 

 

19

 

 

 

169

 

 

 

168

 

 

 

 

 

 

11

 

 

 

207

 

 

 

2

 

 

 

576

 

YTD net charge-offs (recoveries)

 

 

19

 

 

 

169

 

 

 

160

 

 

 

(13

)

 

 

11

 

 

 

123

 

 

 

(3,375

)

 

 

(2,906

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equipment financing agreements:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass / Pass-Watch

 

 

140,143

 

 

 

144,617

 

 

 

129,764

 

 

 

52,354

 

 

 

8,085

 

 

 

3,563

 

 

 

 

 

 

478,526

 

Special Mention

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Classified

 

 

431

 

 

 

1,945

 

 

 

3,851

 

 

 

1,934

 

 

 

129

 

 

 

206

 

 

 

 

 

 

8,496

 

Total equipment financing agreements

 

 

140,574

 

 

 

146,562

 

 

 

133,615

 

 

 

54,288

 

 

 

8,214

 

 

 

3,769

 

 

 

 

 

 

487,022

 

YTD gross charge-offs

 

 

30

 

 

 

1,456

 

 

 

5,128

 

 

 

2,206

 

 

 

354

 

 

 

325

 

 

 

 

 

 

9,499

 

YTD net charge-offs (recoveries)

 

 

30

 

 

 

1,299

 

 

 

4,488

 

 

 

1,826

 

 

 

287

 

 

 

(211

)

 

 

 

 

 

7,719

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans receivable:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass / Pass-Watch

 

 

1,144,374

 

 

 

970,654

 

 

 

1,509,473

 

 

 

1,030,828

 

 

 

585,500

 

 

 

393,538

 

 

 

451,714

 

 

 

6,086,081

 

Special Mention

 

 

49,408

 

 

 

 

 

 

13,410

 

 

 

 

 

 

 

 

 

76,544

 

 

 

251

 

 

 

139,613

 

Classified

 

 

972

 

 

 

1,940

 

 

 

10,688

 

 

 

5,187

 

 

 

517

 

 

 

5,191

 

 

 

1,188

 

 

 

25,683

 

Total loans receivable

 

$

1,194,754

 

 

$

972,594

 

 

$

1,533,571

 

 

$

1,036,015

 

 

$

586,017

 

 

$

475,273

 

 

$

453,153

 

 

$

6,251,377

 

YTD gross charge-offs

 

 

49

 

 

 

1,625

 

 

 

5,570

 

 

 

2,206

 

 

 

1,498

 

 

 

668

 

 

 

2

 

 

 

11,618

 

YTD net charge-offs (recoveries)

 

 

49

 

 

 

1,468

 

 

 

4,922

 

 

 

1,813

 

 

 

1,409

 

 

 

(2,153

)

 

 

(3,375

)

 

 

4,133

 

 

(1)
Includes extensions, renewals, or modifications of credit contracts, which consist of a new credit decision.

15


 

Loans by Vintage Year and Payment Performance

 

 

 

Term Loans

 

 

 

 

 

 

 

 

 

Amortized Cost Basis by Origination Year (1)

 

 

 

 

 

 

 

 

 

2025

 

 

2024

 

 

2023

 

 

2022

 

 

2021

 

 

Prior

 

 

Revolving
Loans
Amortized
Cost Basis

 

 

Total

 

 

 

(in thousands)

 

March 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial property

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

$

324,276

 

 

$

470,866

 

 

$

526,730

 

 

$

908,008

 

 

$

783,300

 

 

$

766,701

 

 

$

93,960

 

 

$

3,873,841

 

Nonperforming

 

 

 

 

 

 

 

 

 

 

 

20,109

 

 

 

 

 

 

3,125

 

 

 

 

 

 

23,234

 

Total commercial property

 

 

324,276

 

 

 

470,866

 

 

 

526,730

 

 

 

928,117

 

 

 

783,300

 

 

 

769,826

 

 

 

93,960

 

 

 

3,897,075

 

YTD gross charge-offs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

169

 

 

 

 

 

 

169

 

YTD net charge-offs (recoveries)

 

 

(1

)

 

 

 

 

 

 

 

 

(274

)

 

 

 

 

 

21

 

 

 

 

 

 

(254

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

15,014

 

 

 

55,564

 

 

 

7,998

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

78,576

 

Nonperforming

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total construction

 

 

15,014

 

 

 

55,564

 

 

 

7,998

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

78,576

 

YTD gross charge-offs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YTD net charge-offs (recoveries)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

53,928

 

 

 

125,045

 

 

 

185,407

 

 

 

349,399

 

 

 

143,387

 

 

 

112,721

 

 

 

6,834

 

 

 

976,721

 

Nonperforming

 

 

 

 

 

 

 

 

 

 

 

1,529

 

 

 

 

 

 

1,286

 

 

 

 

 

 

2,815

 

Total residential

 

 

53,928

 

 

 

125,045

 

 

 

185,407

 

 

 

350,928

 

 

 

143,387

 

 

 

114,007

 

 

 

6,834

 

 

 

979,536

 

YTD gross charge-offs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YTD net charge-offs (recoveries)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1

)

 

 

 

 

 

(1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total real estate loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

393,218

 

 

 

651,475

 

 

 

720,135

 

 

 

1,257,407

 

 

 

926,687

 

 

 

879,422

 

 

 

100,794

 

 

 

4,929,138

 

Nonperforming

 

 

 

 

 

 

 

 

 

 

 

21,638

 

 

 

 

 

 

4,411

 

 

 

 

 

 

26,049

 

Total real estate loans

 

 

393,218

 

 

 

651,475

 

 

 

720,135

 

 

 

1,279,045

 

 

 

926,687

 

 

 

883,833

 

 

 

100,794

 

 

 

4,955,187

 

YTD gross charge-offs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

169

 

 

 

 

 

 

169

 

YTD net charge-offs (recoveries)

 

 

(1

)

 

 

 

 

 

 

 

 

(274

)

 

 

 

 

 

20

 

 

 

 

 

 

(255

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

138,971

 

 

 

211,289

 

 

 

48,519

 

 

 

85,154

 

 

 

31,601

 

 

 

23,231

 

 

 

314,381

 

 

 

853,146

 

Nonperforming

 

 

 

 

 

131

 

 

 

 

 

 

118

 

 

 

 

 

 

 

 

 

1,011

 

 

 

1,260

 

Total commercial and industrial loans

 

 

138,971

 

 

 

211,420

 

 

 

48,519

 

 

 

85,272

 

 

 

31,601

 

 

 

23,231

 

 

 

315,392

 

 

 

854,406

 

YTD gross charge-offs

 

 

 

 

 

 

 

 

 

 

 

88

 

 

 

 

 

 

134

 

 

 

 

 

 

222

 

YTD net charge-offs (recoveries)

 

 

 

 

 

 

 

 

(5

)

 

 

80

 

 

 

 

 

 

111

 

 

 

 

 

 

186

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equipment financing agreements:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

47,857

 

 

 

126,273

 

 

 

128,890

 

 

 

111,166

 

 

 

42,505

 

 

 

7,644

 

 

 

 

 

 

464,335

 

Nonperforming

 

 

 

 

 

271

 

 

 

2,155

 

 

 

3,914

 

 

 

1,681

 

 

 

240

 

 

 

 

 

 

8,261

 

Total equipment financing agreements

 

 

47,857

 

 

 

126,544

 

 

 

131,045

 

 

 

115,080

 

 

 

44,186

 

 

 

7,884

 

 

 

 

 

 

472,596

 

YTD gross charge-offs

 

 

 

 

 

220

 

 

 

760

 

 

 

1,234

 

 

 

506

 

 

 

78

 

 

 

 

 

 

2,798

 

YTD net charge-offs (recoveries)

 

 

 

 

 

220

 

 

 

604

 

 

 

927

 

 

 

275

 

 

 

(9

)

 

 

(2

)

 

 

2,015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans receivable:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

580,046

 

 

 

989,037

 

 

 

897,544

 

 

 

1,453,727

 

 

 

1,000,793

 

 

 

910,297

 

 

 

415,175

 

 

 

6,246,619

 

Nonperforming

 

 

 

 

 

402

 

 

 

2,155

 

 

 

25,670

 

 

 

1,681

 

 

 

4,651

 

 

 

1,011

 

 

 

35,570

 

Total loans receivable

 

$

580,046

 

 

$

989,439

 

 

$

899,699

 

 

$

1,479,397

 

 

$

1,002,474

 

 

$

914,948

 

 

$

416,186

 

 

$

6,282,189

 

YTD gross charge-offs

 

 

 

 

 

220

 

 

 

760

 

 

 

1,322

 

 

 

506

 

 

 

381

 

 

 

 

 

 

3,189

 

YTD net charge-offs (recoveries)

 

 

(1

)

 

 

220

 

 

 

599

 

 

 

733

 

 

 

275

 

 

 

122

 

 

 

(2

)

 

 

1,946

 

 

(1)
Includes extensions, renewals, or modifications of credit contracts, which consist of a new credit decision.

16


 

 

 

 

Term Loans

 

 

 

 

 

 

 

 

 

Amortized Cost Basis by Origination Year (1)

 

 

 

 

 

 

 

 

 

2024

 

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

Prior

 

 

Revolving
Loans
Amortized
Cost Basis

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial property

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

$

564,465

 

 

$

558,271

 

 

$

936,140

 

 

$

804,089

 

 

$

553,562

 

 

$

351,042

 

 

$

101,277

 

 

$

3,868,846

 

Nonperforming

 

 

 

 

 

 

 

 

717

 

 

 

 

 

 

 

 

 

1,461

 

 

 

 

 

 

2,178

 

Total commercial property

 

 

564,465

 

 

 

558,271

 

 

 

936,857

 

 

 

804,089

 

 

 

553,562

 

 

 

352,503

 

 

 

101,277

 

 

 

3,871,024

 

YTD gross charge-offs

 

 

 

 

 

 

 

 

274

 

 

 

 

 

 

 

 

 

136

 

 

 

 

 

 

410

 

YTD net charge-offs (recoveries)

 

 

 

 

 

 

 

 

274

 

 

 

 

 

 

(21

)

 

 

(704

)

 

 

 

 

 

(451

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

70,601

 

 

 

7,997

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

78,598

 

Nonperforming

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total construction

 

 

70,601

 

 

 

7,997

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

78,598

 

YTD gross charge-offs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,133

 

 

 

 

 

 

 

 

 

1,133

 

YTD net charge-offs (recoveries)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,132

 

 

 

(1,358

)

 

 

 

 

 

(226

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

127,986

 

 

 

200,316

 

 

 

354,562

 

 

 

145,310

 

 

 

11,164

 

 

 

105,406

 

 

 

4,687

 

 

 

949,431

 

Nonperforming

 

 

 

 

 

 

 

 

1,555

 

 

 

 

 

 

316

 

 

 

 

 

 

 

 

 

1,871

 

Total residential

 

 

127,986

 

 

 

200,316

 

 

 

356,117

 

 

 

145,310

 

 

 

11,480

 

 

 

105,406

 

 

 

4,687

 

 

 

951,302

 

YTD gross charge-offs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YTD net charge-offs (recoveries)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3

)

 

 

 

 

 

(3

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total real estate loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

763,052

 

 

 

766,584

 

 

 

1,290,702

 

 

 

949,399

 

 

 

564,726

 

 

 

456,448

 

 

 

105,964

 

 

 

4,896,875

 

Nonperforming

 

 

 

 

 

 

 

 

2,272

 

 

 

 

 

 

316

 

 

 

1,461

 

 

 

 

 

 

4,049

 

Total real estate loans

 

 

763,052

 

 

 

766,584

 

 

 

1,292,974

 

 

 

949,399

 

 

 

565,042

 

 

 

457,909

 

 

 

105,964

 

 

 

4,900,924

 

YTD gross charge-offs

 

 

 

 

 

 

 

 

274

 

 

 

 

 

 

1,133

 

 

 

136

 

 

 

 

 

 

1,543

 

YTD net charge-offs (recoveries)

 

 

 

 

 

 

 

 

274

 

 

 

 

 

 

1,111

 

 

 

(2,065

)

 

 

 

 

 

(680

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

291,128

 

 

 

59,453

 

 

 

106,863

 

 

 

32,328

 

 

 

12,761

 

 

 

13,498

 

 

 

346,001

 

 

 

862,032

 

Nonperforming

 

 

 

 

 

(5

)

 

 

119

 

 

 

 

 

 

 

 

 

97

 

 

 

1,188

 

 

 

1,399

 

Total commercial and industrial loans

 

 

291,128

 

 

 

59,448

 

 

 

106,982

 

 

 

32,328

 

 

 

12,761

 

 

 

13,595

 

 

 

347,189

 

 

 

863,431

 

YTD gross charge-offs

 

 

19

 

 

 

169

 

 

 

168

 

 

 

 

 

 

11

 

 

 

207

 

 

 

2

 

 

 

576

 

YTD net charge-offs (recoveries)

 

 

19

 

 

 

169

 

 

 

160

 

 

 

(13

)

 

 

11

 

 

 

123

 

 

 

(3,375

)

 

 

(2,906

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equipment financing agreements:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

140,143

 

 

 

144,617

 

 

 

129,442

 

 

 

52,354

 

 

 

8,079

 

 

 

3,563

 

 

 

 

 

 

478,198

 

Nonperforming

 

 

431

 

 

 

1,945

 

 

 

4,173

 

 

 

1,934

 

 

 

135

 

 

 

206

 

 

 

 

 

 

8,824

 

Total equipment financing agreements

 

 

140,574

 

 

 

146,562

 

 

 

133,615

 

 

 

54,288

 

 

 

8,214

 

 

 

3,769

 

 

 

 

 

 

487,022

 

YTD gross charge-offs

 

 

30

 

 

 

1,456

 

 

 

5,128

 

 

 

2,206

 

 

 

354

 

 

 

325

 

 

 

 

 

 

9,499

 

YTD net charge-offs (recoveries)

 

 

30

 

 

 

1,299

 

 

 

4,488

 

 

 

1,826

 

 

 

287

 

 

 

(211

)

 

 

 

 

 

7,719

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans receivable:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

1,194,323

 

 

 

970,654

 

 

 

1,527,007

 

 

 

1,034,081

 

 

 

585,566

 

 

 

473,509

 

 

 

451,965

 

 

 

6,237,105

 

Nonperforming

 

 

431

 

 

 

1,940

 

 

 

6,564

 

 

 

1,934

 

 

 

451

 

 

 

1,764

 

 

 

1,188

 

 

 

14,272

 

Total loans receivable

 

$

1,194,754

 

 

$

972,594

 

 

$

1,533,571

 

 

$

1,036,015

 

 

$

586,017

 

 

$

475,273

 

 

$

453,153

 

 

$

6,251,377

 

YTD gross charge-offs

 

 

49

 

 

 

1,625

 

 

 

5,570

 

 

 

2,206

 

 

 

1,498

 

 

 

668

 

 

 

2

 

 

 

11,618

 

YTD net charge-offs (recoveries)

 

 

49

 

 

 

1,468

 

 

 

4,922

 

 

 

1,813

 

 

 

1,409

 

 

 

(2,153

)

 

 

(3,375

)

 

 

4,133

 

 

(1)
Includes extensions, renewals, or modifications of credit contracts, which consist of a new credit decision.

 

17


 

The following is an aging analysis of loans, including loans on nonaccrual status, disaggregated by loan class, as of:

 

 

 

30-59
Days
Past Due

 

 

60-89
Days
Past Due

 

 

90 Days
or More
Past Due

 

 

Total
Past Due

 

 

Current

 

 

Total

 

 

 

(in thousands)

 

March 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial property

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail

 

$

1,647

 

 

$

 

 

$

83

 

 

$

1,730

 

 

$

1,107,367

 

 

$

1,109,097

 

Hospitality

 

 

471

 

 

 

1,821

 

 

 

215

 

 

 

2,507

 

 

 

842,768

 

 

 

845,275

 

Office

 

 

 

 

 

20,000

 

 

 

 

 

 

20,000

 

 

 

543,957

 

 

 

563,957

 

Other

 

 

657