Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2024 | May 07, 2024 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2024 | |
Entity File Number | 001-41899 | |
Entity Registrant Name | NB Bancorp, Inc. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 93-2560883 | |
Entity Address State Or Province | MA | |
Entity Address, Address Line One | 1063 Great Plain Avenue | |
Entity Address, City or Town | Needham | |
Entity Address, Postal Zip Code | 02492 | |
City Area Code | 781 | |
Local Phone Number | 444-2100 | |
Title of 12(b) Security | Common stock, par value $0.01 per share | |
Trading Symbol | NBBK | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 42,705,729 | |
Entity Central Index Key | 0001979330 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Assets | ||
Cash and due from banks | $ 163,657 | $ 90,485 |
Federal funds sold | 151,374 | 182,106 |
Total cash and cash equivalents | 315,031 | 272,591 |
Available-for-sale securities, at fair value | 207,169 | 189,465 |
Loans receivable | 3,954,623 | 3,889,279 |
Allowance for credit losses | (34,306) | (32,222) |
Net Loans | 3,920,317 | 3,857,057 |
Accrued interest receivable | 17,843 | 17,284 |
Banking premises and equipment, net | 35,106 | 35,531 |
Federal Home Loan Bank stock, at cost | 4,357 | 14,558 |
Federal Reserve Bank stock, at cost | 10,319 | 10,323 |
Non-public investments | 13,619 | 13,852 |
Bank-owned life insurance ("BOLI") | 50,917 | 50,516 |
Prepaid expenses and other assets | 56,289 | 53,109 |
Deferred income tax asset, net | 19,052 | 19,126 |
Total assets | 4,650,019 | 4,533,412 |
Liabilities and shareholders' equity | ||
Deposits | 3,772,053 | 3,387,348 |
Mortgagors' escrow accounts | 4,300 | 4,229 |
FHLB borrowings | 60,837 | 283,338 |
Accrued expenses and other liabilities | 60,760 | 81,325 |
Accrued retirement liabilities | 18,231 | 19,213 |
Total liabilities | 3,916,181 | 3,775,453 |
Shareholders' equity: | ||
Preferred stock, $0.01 par value, 5,000,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Common stock, $0.01 par value, 120,000,000 shares authorized; 42,705,729 shares issued and outstanding | 427 | 427 |
Additional paid-in capital | 416,812 | 417,030 |
Unallocated common shares held by the Employee Stock Ownership Plan | (46,590) | (13,774) |
Retained earnings | 374,874 | 366,173 |
Accumulated other comprehensive loss | (11,685) | (11,897) |
Total shareholders' equity | 733,838 | 757,959 |
Total liabilities and shareholders' equity | $ 4,650,019 | $ 4,533,412 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2024 | Dec. 31, 2023 |
Consolidated Balance Sheets | ||
Preferred Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 120,000,000 | 120,000,000 |
Common Stock, Shares, Issued | 42,705,729 | 42,705,729 |
Common Stock, Shares, Outstanding | 42,705,729 | 42,705,729 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
INTEREST AND DIVIDEND INCOME | ||
Interest and fees on loans | $ 64,000,000 | $ 43,760,000 |
Interest on investments securities | 1,279,000 | 1,117,000 |
Interest on cash equivalents and other | 2,914,000 | 1,140,000 |
Total interest and dividend income | 68,193,000 | 46,017,000 |
INTEREST EXPENSE | ||
Interest on deposits | 28,217,000 | 12,293,000 |
Interest on borrowings | 1,343,000 | 2,506,000 |
Total interest expense | 29,560,000 | 14,799,000 |
NET INTEREST INCOME | 38,633,000 | 31,218,000 |
PROVISION FOR CREDIT LOSSES | ||
Provision for credit losses - loans | 3,890,000 | 2,072,000 |
Provision for credit losses - unfunded commitments | 539,000 | 0 |
Total provision for credit losses | 4,429,000 | 2,072,000 |
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 34,204,000 | 29,146,000 |
NON INTEREST INCOME | ||
Customer service fees | 1,880,000 | 1,696,000 |
Increase in cash surrender value of BOLI | 401,000 | 371,000 |
Mortgage banking income | 110,000 | 230,000 |
Swap contract income | 487,000 | 107,000 |
Employee retention credit income | 3,452,000 | |
Other income | 623,000 | 11,000 |
Total noninterest income | 3,501,000 | 5,867,000 |
NON INTEREST EXPENSES | ||
Salaries and employee benefits | 17,560,000 | 14,977,000 |
Director and professional service fees | 1,908,000 | 1,664,000 |
Occupancy and equipment expenses | 1,336,000 | 1,375,000 |
Data processing expenses | 1,995,000 | 1,717,000 |
Marketing and charitable contribution expenses | 742,000 | 1,190,000 |
FDIC and state insurance assessments | 361,000 | 692,000 |
General and administrative expenses | 1,663,000 | 1,417,000 |
Total noninterest expense | 25,565,000 | 23,032,000 |
INCOME BEFORE TAXES | 12,140,000 | 11,981,000 |
INCOME TAXES | 3,439,000 | 3,229,000 |
NET INCOME | $ 8,701,000 | $ 8,752,000 |
Weighted average common shares outstanding, basic | 39,689,644 | |
Weighted average common shares outstanding, diluted | 39,689,644 | |
Earnings per share, basic | $ 0.22 | |
Earnings per share, diluted | $ 0.22 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Consolidated Statements of Comprehensive Income | ||
Net Income (Loss) | $ 8,701 | $ 8,752 |
OTHER COMPREHENSIVE INCOME, NET OF TAX: | ||
Net change in fair value of available-for-sale securities | 212 | 1,283 |
Net change in fair value of cash flow hedge | (195) | |
TOTAL OTHER COMPREHENSIVE INCOME, NET OF TAX: | 212 | 1,088 |
TOTAL COMPREHENSIVE INCOME, NET OF TAX | $ 8,913 | $ 9,840 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Shareholders' Equity - USD ($) $ in Thousands | Common stock | Additional Paid-in Capital | Unallocated Common Stock Held by ESOP | Retained Earnings Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Cumulative Effect, Period of Adoption, Adjustment | Total |
Balance at the beginning (Accounting Standards Update 2016-13) at Dec. 31, 2022 | $ (2,118) | $ (2,118) | ||||||
Balance at the beginning at Dec. 31, 2022 | $ 358,466 | $ (14,401) | $ 344,065 | |||||
Balance at the beginning (in shares) at Dec. 31, 2022 | 0 | |||||||
Consolidated Statement of Changes in Shareholders' Equity | ||||||||
Net income | 8,752 | 8,752 | ||||||
Other comprehensive income, net of tax | 1,088 | 1,088 | ||||||
Balance at the end at Mar. 31, 2023 | 365,100 | (13,313) | 351,787 | |||||
Balance at the beginning at Dec. 31, 2023 | $ 427 | $ 417,030 | $ (13,774) | 366,173 | (11,897) | 757,959 | ||
Balance at the beginning (in shares) at Dec. 31, 2023 | 42,705,729 | |||||||
Consolidated Statement of Changes in Shareholders' Equity | ||||||||
Net income | 8,701 | 8,701 | ||||||
Other comprehensive income, net of tax | 212 | 212 | ||||||
Costs from stock offering and issuance of common shares | (225) | (225) | ||||||
Purchase of common shares held by ESOP (2,416,458 shares) | (33,397) | (33,397) | ||||||
ESOP shares committed to be released (42,121 shares) | 7 | 581 | 588 | |||||
Balance at the end at Mar. 31, 2024 | $ 427 | $ 416,812 | $ (46,590) | $ 374,874 | $ (11,685) | $ 733,838 | ||
Balance at the end (in shares) at Mar. 31, 2024 | 42,705,729 |
Consolidated Statement of Cha_2
Consolidated Statement of Changes in Shareholders' Equity (Parenthetical) | 3 Months Ended |
Mar. 31, 2024 shares | |
Consolidated Statement of Changes in Shareholders' Equity | |
Common shares ESOP | 2,416,458 |
Shares committed to be released | 42,121 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 8,701 | $ 8,752 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Net accretion of available-for-sale securities | (45) | (26) |
Amortization of core deposit intangible | 37 | 37 |
Provision for credit losses | 4,429 | 2,072 |
Loan hedge fair value adjustments, including amortization | 27 | 35 |
Change in net deferred loan origination fees | 261 | 1,050 |
Depreciation and amortization expense | 695 | 691 |
Increase in cash surrender values of BOLI | (401) | (371) |
Deferred income tax benefit | (9) | (10) |
ESOP expense | 588 | |
Changes in operating assets and liabilities: | ||
Accrued interest receivable | (559) | (820) |
Prepaid expenses and other assets | (3,217) | 2,069 |
Accrued expenses and other liabilities | (21,104) | (4,879) |
Accrued retirement liabilities | (982) | (274) |
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES | (11,579) | 8,326 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Loan originations and purchases, net of repayments | (67,574) | (200,286) |
Purchases of available-for-sale securities | (23,860) | (26,725) |
Proceeds from maturities, calls and paydowns of available-for-sale securities | 6,496 | 29,027 |
Redemptions of Federal Home Loan Bank stock, net | 10,201 | 5,320 |
Redemptions (purchases) of Federal Reserve stock, net | 4 | (569) |
Recoveries of loans previously charged off | 136 | 309 |
Net change in non-public investments | 233 | 418 |
Purchases of banking premises and equipment | (270) | (1,390) |
NET CASH USED IN INVESTING ACTIVITIES | (74,634) | (193,896) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net change in deposits | 384,705 | 254,096 |
Net costs from stock offering and issuance of common shares | (225) | |
Purchase of common shares held by ESOP | (33,397) | |
Net change in mortgagors' escrow accounts | 71 | (197) |
Decrease in FHLB borrowings, net | (222,501) | (133,003) |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 128,653 | 120,896 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 42,440 | (64,674) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 272,591 | 156,545 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 315,031 | 91,871 |
Supplemental disclosure of cash paid during the period for: | ||
Interest | 30,334 | 27,473 |
Income taxes | 2,020 | 1,610 |
Supplemental disclosure of non-cash transactions: | ||
Cumulative effect adjustment of adoption of ASC 326, net of income taxes | 2,118 | |
Unrealized gains on available-for-sale securities | $ 295 | 1,713 |
Unrealized holding losses on cash flow hedge | $ (271) |
Conversion
Conversion | 3 Months Ended |
Mar. 31, 2024 | |
Conversion | |
Conversion | Note 1 – Conversion Effective December 27, 2023, NB Financial, MHC (the “MHC”), the former mutual holding company of Needham Bank (the “Bank”) and the predecessor to, NB Bancorp, Inc. (the “Company”) consummated its mutual to stock conversion and the Company consummated its related stock offering. In the offering, the Company sold 40,997,500 shares of common stock, par value $0.01 per share, at a per share price of $10.00 for gross offering proceeds of $410.0 million. Additionally, the Company contributed 1,708,229 shares and $2.0 million in cash to the Needham Bank Charitable Foundation (the “Foundation”) . The shares of the Company’s common stock sold in the offering began trading on The Nasdaq Capital Market on December 28, 2023 under the symbol “NBBK.” In connection with the conversion, liquidation accounts were established by the Company and the Bank in an aggregate amount equal to (i) the MHC’s ownership interest in the shareholders’ equity of NB Financial, Inc. as of the date of the latest statement of financial condition included in the Company’s definitive prospectus dated October 12, 2023, plus (ii) the value of the net assets of the MHC as of the date of the MHC’s latest statement of financial condition before the consummation of the Conversion (excluding the MHC’s ownership interest in NB Financial, Inc.). Each eligible account holder and supplemental eligible account holder is entitled to a proportionate share of the liquidation accounts in the unlikely event of a liquidation of (i) the Company and the Bank or (ii) the Bank, and only in such events. This share will be reduced if the eligible account holder’s or supplemental account holder’s deposit balance falls below the amounts on the date of record and will cease to exist if the account is closed. The liquidation account will never be increased despite any increase after conversion in the related deposit balance. The Bank may not pay a dividend on its capital stock if the effect thereof would cause retained earnings to be reduced below the liquidation account amount or regulatory capital requirements. |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2024 | |
Basis of Presentation | |
Basis of Presentation | Note 2 – Basis of Presentation The Company’s accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. The consolidated financial statements of NB Bancorp, Inc. (referred to herein as the “Company," “we,” “us,” or “our”) include the balances and results of operations of the Company and the Bank, its wholly-owned subsidiary, as well as the Bank’s wholly-owned subsidiaries, Needco-op Investment Corporation, Inc., 1892 Investments LLC and Eaton Square Realty LLC. Intercompany transactions and balances are eliminated in consolidation. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly the Company's financial position as of March 31, 2024 and the results of operations and cash flows for the interim periods ended March 31, 2024 and 2023. All interim amounts have not been audited, and the results of operations for the interim periods herein are not necessarily indicative of the results of operations to be expected for the fiscal year. The accompanying unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2023 and accompanying notes thereto included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission. The Company qualifies as an emerging growth company (“EGC”) under the Jumpstart Our Business Startups Act of 2012 and has elected to defer the adoption of new or revised accounting standards until the nonpublic company effective dates. As such, the Company will adopt standards on the nonpublic company effective dates until such time that we no longer qualify as an EGC. Certain previously reported amounts have been reclassified to conform to the current period’s presentation. |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2024 | |
Investment Securities | |
Investment Securities | Note 3 – Investment Securities The Company's available-for-sale securities are carried at fair value. For available-for-sale securities in an unrealized loss position, management will first evaluate whether there is intent to sell, or if it is more likely than not that the Company will be required to sell a security prior to anticipated recovery of its amortized cost basis. If either of these criteria are met, the Company will record a write-down of the security's amortized cost basis to fair value through income. For those available-for-sale securities which do not meet the intent or requirement to sell criteria, management will evaluate whether the decline in fair value is a result of credit related matters or other factors. In performing this assessment, management considers the creditworthiness of the issuer including whether the security is guaranteed by the U.S. Federal Government or other government agency, the extent to which fair value is less than amortized cost, and changes in credit rating during the period, among other factors. If this assessment indicates the existence of credit losses, the security will be written down to fair value, as determined by a discounted cash flow analysis. To the extent the estimated cash flows do not support the amortized cost, the deficiency is considered to be due to credit loss and is recognized in earnings. Changes in the allowance for credit losses are recorded as a provision for (or reversal of) credit loss expense. Losses are charged against the allowance when the uncollectibility of a security is confirmed, or when either of the aforementioned criteria surrounding intent or requirement to sell have been met. Investments in securities have been classified on the consolidated balance sheets according to management’s intent. The following tables summarize the amortized cost, allowance for credit losses, and fair value of securities and their corresponding amounts of unrealized gains and losses at the dates indicated: Amortized Unrealized Unrealized Allowance for Cost Gain Loss Credit Losses Fair Value March 31, 2024 (in thousands) Available-for-Sale Debt Securities: U.S. Treasury securities $ 79,796 $ 1 $ (2,375) $ — $ 77,422 U.S. Government agencies 3,998 1 — — 3,999 Agency mortgage-backed securities 12,792 3 (1,870) — 10,925 Agency collateralized mortgage obligations 2,849 1 (590) — 2,260 Corporate bonds 103,235 11 (8,760) — 94,486 Municipal obligations 19,008 — (931) — 18,077 Total $ 221,678 $ 17 $ (14,526) $ — $ 207,169 Amortized Unrealized Unrealized Allowance for Cost Gain Loss Credit Losses Fair Value December 31, 2023 (in thousands) Available-for-Sale Debt Securities: U.S. Treasury securities $ 66,874 $ 27 $ (2,549) $ — $ 64,352 Agency mortgage-backed securities 13,154 5 (1,729) — 11,430 Agency collateralized mortgage obligations 2,987 — (569) — 2,418 Corporate bonds 101,244 5 (9,014) — 92,235 Municipal obligations 20,010 — (980) — 19,030 Total $ 204,269 $ 37 $ (14,841) $ — $ 189,465 The Company did not record a provision for estimated credit losses on any available-for-sale securities for the three months ended March 31, 2024. Excluded from the table above is accrued interest on available-for-sale securities of $1.5 million and $1.2 million at March 31, 2024 and December 31, 2023, respectively, which is included within accrued interest receivable on the consolidated balance sheets. Additionally, the Company did not record any write-offs of accrued interest income on available-for-sale securities for the three months ended March 31, 2024. No securities held by the Company were delinquent on contractual payments at March 31, 2024, nor were any securities placed on non-accrual status for the three months then ended. The following is a summary of actual maturities of certain available-for-sale securities as of March 31, 2024. The amortized cost and fair values are based on the contractual maturity dates. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalty. Agency mortgage-backed securities and collateralized mortgage obligations are presented as separate lines as paydowns are expected to occur before contractual maturity dates. Available-for-Sale Amortized Cost Fair Value (in thousands) Within one year $ 71,869 $ 71,483 Over one year to five years 98,678 92,531 Over five years to ten years 35,490 29,970 206,037 193,984 Agency mortgage-backed securities 12,792 10,925 Agency collateralized mortgage obligations 2,849 2,260 $ 221,678 $ 207,169 When securities are sold, the adjusted cost of the specific security sold is used to compute the gain or loss on the sale. There were no sales of securities during the three months ended March 31, 2024 and 2023. The carrying value of securities pledged to secure borrowings from the Federal Reserve Bank was $50.9 million and $49.6 million as of March 31, 2024 and December 31, 2023, respectively. The following tables present fair value and gross unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of the dates stated. Less than 12 Months 12 Months or More Total (Dollars in thousands) Gross Gross Gross Unrealized Fair Unrealized Fair Unrealized Fair March 31, 2024 Number of Securities Losses Value Losses Value Losses Value U. S. Treasuries 19 $ (23) $ 27,816 $ (2,352) $ 44,632 $ (2,375) $ 72,448 U.S. Government Agencies 0 — — — — — — Agency mortgage-backed securities 19 — 55 (1,870) 10,639 (1,870) 10,694 Agency collateralized mortgage obligations 5 — — (590) 2,260 (590) 2,260 Corporate bonds 32 (1,135) 6,866 (7,625) 75,610 (8,760) 82,476 Municipal obligations 12 (183) 1,817 (748) 16,260 (931) 18,077 Total 87 $ (1,341) $ 36,554 $ (13,185) $ 149,401 $ (14,526) $ 185,955 Less than 12 Months 12 Months or More Total (Dollars in thousands) Gross Gross Gross Unrealized Fair Unrealized Fair Unrealized Fair December 31, 2023 Number of Securities Losses Value Losses Value Losses Value U.S. Treasury securities 15 $ (95) $ 7,884 $ (2,454) $ 46,515 $ (2,549) $ 54,399 Agency mortgage-backed securities 18 — — (1,729) 11,124 (1,729) 11,124 Agency collateralized mortgage obligations 5 — — (569) 2,418 (569) 2,418 Corporate bonds 33 (1,135) 6,866 (7,879) 78,365 (9,014) 85,231 Municipal obligations 13 (181) 1,819 (799) 17,211 (980) 19,030 Total 84 $ (1,411) $ 16,569 $ (13,430) $ 155,633 $ (14,841) $ 172,202 Management evaluates securities for expected credit losses at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Included in corporate bonds are investments in senior and subordinated debt of banks and bank holding companies, some of which do not have investment ratings. At March 31, 2024, available-for-sale debt securities had unrealized losses with aggregate depreciation of 8.5%, from the Company’s amortized cost basis. These unrealized losses relate to changes in market interest rates since acquiring the securities. As management has the intent and ability to hold debt securities until maturity or cost recovery, no allowance for credit losses on securities is deemed necessary as of March 31, 2024. |
Loans Receivable, Allowance for
Loans Receivable, Allowance for Credit Losses and Credit Quality | 3 Months Ended |
Mar. 31, 2024 | |
Loans Receivable, Allowance for Credit Losses and Credit Quality | |
Loans Receivable, Allowance for Credit Losses and Credit Quality | Note 4 – Loans Receivable, Allowance for Credit Losses and Credit Quality Loans Receivable Loans that management has the intent and ability to hold for the foreseeable future or until loan maturity or pay-off are reported as held-for-investment at their outstanding principal balance adjusted for any charge-offs and net of any deferred fees (including purchase accounting adjustments) and origination costs (collectively referred to as “amortized cost”). Loans are generally placed into nonaccrual status when they are past due 90 days or more as to either principal or interest or when, in the opinion of management, the collection of principal and/or interest is in doubt. A loan remains in nonaccrual status until the loan is current as to payment of both principal and interest or past due less than 90 days and the borrower demonstrates the ability to pay and remain current. When cash payments are received, they are applied to principal first, then to accrued interest. It is the Company’s policy not to record interest income on nonaccrual loans until principal has become current. In certain instances, accruing loans that are past due 90 days or more as to principal or interest may not go on nonaccrual status if the Company determines that the loans are well-secured and are in the process of collection. Allowance For Credit Losses The Allowance for Credit Losses (“ACL”) represents management’s best estimate of credit losses over the remaining life of the loan portfolio. Loans are charged-off against the ACL when management believes the loan balance is no longer collectible. This determination is made based on management's review of specific facts and circumstances of the individual loan, including the expected cash flows to repay the loan, the value of the collateral and the ability and willingness of any guarantors to perform. Subsequent recoveries of previously charged-off amounts are recorded as increases to the ACL. The provision for credit losses on loans is an amount sufficient to bring the ACL to an estimated balance that management considers adequate to absorb lifetime expected losses in the Company’s held-for-investment loan portfolio. The ACL is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. Management’s determination of the adequacy of the ACL under FASB ASC 326 – Financial Instruments – Credit Losses The weighted average remaining maturity (“WARM”) method is the primary credit loss estimation methodology used by the Company and involves estimating future cash flows and expected credit losses for pools of loans using their expected remaining weighted average life. In applying future economic forecasts, the Company utilizes a forecast period of up to two years. Historical loss rates used in the quantitative model are primarily derived using both the Bank’s data, supplemented with peer bank data obtained from publicly available sources. Management also considers qualitative adjustments when estimating credit losses to take into account the model’s quantitative limitations. Qualitative adjustments to quantitative loss factors, either negative or positive, may include considerations of economic conditions, volume and severity of past due loans, value of underlying collateral, experience, depth, and ability of management, and concentrations of credit. For those loans that do not share similar risk characteristics, the Company evaluates the ACL needs on an individual (or loan by loan) basis. This population of individually evaluated loans (or loan relationships with the same primary source of repayment) is determined on a quarterly basis and consists of loans with a risk rating of substandard or worse, a balance exceeding $500,000, and loan terms differing significantly from other pooled loans. In accordance with the Company’s policy, non-accrual residential real estate loans that are well secured (LTV <75%) are not considered to warrant a downgrade to substandard risk rating and are therefore excluded from individually evaluated loans. Measurement of credit loss is based on the expected future cash flows of an individually evaluated loan, discounted at the loan’s effective interest rate, or measured on an observable market value, if one exists, or the estimated market value of the collateral underlying the loan, discounted to consider estimated costs to sell the collateral for collateral-dependent loans. If the net value is less than the loan’s amortized cost, a specific reserve in the ACL is recorded, which is charged-off in the period when management believes the loan balance is no longer collectible. In the ordinary course of business, the Company enters into commitments to extend credit. Such financial instruments are recorded in the consolidated financial statements when they are funded. The credit risk associated with these commitments is evaluated in a manner similar to the allowance for credit losses on loans. The reserve for unfunded commitments is included in other liabilities on the consolidated balance sheets. Loans consist of the following as of the dates stated: March 31, 2024 December 31, 2023 Amount Percent Amount Percent (Dollars in thousands) One-to-four-family residential $ 1,102,919 27.85 % $ 1,097,486 28.18 % Home equity 99,208 2.51 % 97,270 2.50 % Residential real estate 1,202,127 30.36 % 1,194,756 30.68 % Commercial real estate 1,195,390 30.19 % 1,169,859 30.04 % Multi-family residential 321,124 8.11 % 209,982 5.39 % Commercial real estate 1,516,514 38.30 % 1,379,841 35.43 % Construction and land development 535,391 13.52 % 622,823 15.99 % Commercial and industrial 498,990 12.60 % 491,918 12.63 % Commercial 2,550,895 64.42 % 2,494,582 64.06 % Consumer, net of premium/discount 206,792 5.22 % 204,871 5.26 % Total loans 3,959,814 100.00 % 3,894,209 100.00 % Deferred fees, net (5,191) (4,930) Allowance for credit losses (34,306) (32,222) Net loans $ 3,920,317 $ 3,857,057 Included in the above are approximately $334.3 million and $320.5 million in loans to borrowers in the cannabis industry at March 31, 2024 and December 31, 2023, respectively. Of that total, During the three months ended March 31, 2024 and 2023, the Company purchased approximately $5.5 million and $4.9 million of consumer loan pools, respectively. The loans purchased during the three months ended March 31, 2024 included loan pools collateralized by boats, recreational vehicles, and automobiles. The loans purchased during the three months ended March 31, 2023 included loan pools collateralized by boats, recreational vehicles, automobiles and solar panels, as well as unsecured home improvement loans. The outstanding balances of these consumer purchased loan pools, shown net of premium (discount) are as follows as of the dates stated: March 31, 2024 Gross Loan Premium (Discount) Net Loan (in thousands) Student loans $ 8,373 $ 47 $ 8,420 Boat and RV loans 55,575 1,353 56,928 Automobile loans 18,824 — 18,824 Solar panel loans 60,092 (5,360) 54,732 Home improvement loans 50,585 (23) 50,562 Total $ 193,449 $ (3,983) $ 189,466 December 31, 2023 Gross Loan Premium (Discount) Net Loan (in thousands) Student loans $ 8,989 $ 49 $ 9,038 Boat and RV loans 58,483 1,422 59,905 Automobile loans 14,662 — 14,662 Solar panel loans 61,430 (5,443) 55,987 Home improvement loans 53,220 (26) 53,194 Total $ 196,784 $ (3,998) $ 192,786 The carrying value of loans pledged to secure advances from the FHLB were $1.24 billion and $1.33 billion as of March 31, 2024 and December 31, 2023, respectively. The following table presents the aging of the amortized cost of loans receivable by loan category as of the date stated: March 31, 2024 30-59 60-89 90 Days or Current Days Days More Past Due Total Loans Past Due Past Due Still Accruing Nonaccrual Loans (in thousands) Real estate loans: One-to-four-family residential $ 1,096,745 $ 1,618 $ 275 $ — $ 4,281 $ 1,102,919 Home equity 96,335 2,287 — — 586 99,208 Commercial real estate 1,190,344 4,144 480 — 422 1,195,390 Multi-family residential 321,124 — — — — 321,124 Construction and land development 535,381 — — — 10 535,391 Commercial and industrial 489,522 5,343 — — 4,125 498,990 Consumer 201,529 2,192 1,689 — 1,382 206,792 Total $ 3,930,980 $ 15,584 $ 2,444 $ — $ 10,806 $ 3,959,814 December 31, 2023 30-59 60-89 90 Days or Current Days Days More Past Due Total Loans Past Due Past Due Still Accruing Nonaccrual Loans (in thousands) Real estate loans: One-to-four-family residential $ 1,091,483 $ 1,903 $ — $ — $ 4,100 $ 1,097,486 Home equity 96,327 288 65 — 590 97,270 Commercial real estate 1,166,702 2,735 — — 422 1,169,859 Multi-family residential 209,982 — — — — 209,982 Construction and land development 622,813 — — — 10 622,823 Commercial and industrial 487,777 2 1 — 4,138 491,918 Consumer 198,450 3,928 955 — 1,538 204,871 Total $ 3,873,534 $ 8,856 $ 1,021 $ — $ 10,798 $ 3,894,209 The following table presents the amortized cost of nonaccrual loans receivable by loan category as of the dates stated: March 31, 2024 December 31, 2023 Nonaccrual Nonaccrual Total Nonaccrual Nonaccrual Total Loans with Loans with Nonaccrual Loans with Loans with Nonaccrual No ACL an ACL Loans No ACL an ACL Loans (In thousands) Real estate loans: One-to-four-family residential $ 4,281 $ — $ 4,281 $ 4,100 $ — $ 4,100 Home equity 586 — 586 590 — 590 Commercial real estate 422 — 422 422 — 422 Multi-family residential — — — — — — Construction and land development 10 — 10 10 — 10 Commercial and industrial 363 3,762 4,125 376 3,762 4,138 Consumer 1,382 — 1,382 1,538 — 1,538 Total $ 7,044 $ 3,762 $ 10,806 $ 7,036 $ 3,762 $ 10,798 During the three months ended March 31, 2024, the Company reversed $159 thousand of interest income for loans that were placed on non-accrual. During the three months ended March 31, 2023, the Company did no t reverse any interest income for loans that were placed on non-accrual. Credit Quality Information The Company utilizes a nine-grade internal rating system for all loans, except consumer loans, which are not risk rated, as follows: Loans rated 1-5: Loans in these categories are considered “pass” rated loans with low to average risk. Loans rated 6: Loans in this category are considered “special mention”. These loans are starting to show signs of potential weakness and are being closely monitored by management. Loans rated 7: Loans in this category are considered “substandard”. Generally, a loan is considered substandard if it is inadequately protected by the current net worth and paying capacity of the obligors and/or the collateral pledged. There is a distinct possibility that the Company will sustain some loss if the weakness is not corrected. Non-accrual residential real estate loans that are well secured (LTV<75%) are not considered to warrant a downgrade to a substandard risk rating. Loans rated 8: Loans in this category are considered “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, highly questionable and improbable. Loans rated 9: Loans in this category are considered uncollectible (“loss”) and of such little value that their continuance as loans is not warranted. On an annual basis, or more often if needed, the Company reviews the accuracy of risk ratings for all commercial real estate, construction and land development loans, and commercial and industrial loans based on various ongoing performance characteristics and supporting information that is provided from time to time by commercial borrowers. Annually, the Company engages an independent third-party to review a significant portion of loans within these segments. Management uses the results of these reviews as part of its annual review process. The following table presents the amortized cost of loans receivable by internal risk grade by year of origination as of March 31, 2024. Also presented are current period gross charge-offs by loan type and vintage year for the three months ended March 31, 2024: Term Loans Amortized Cost Basis by Origination Year (in thousands) Risk Rating 2024 2023 2022 2021 2020 Prior Revolving Loans Total One-to-Four-Family Residential Grade: Pass 1-5 $ 29,286 $ 151,762 $ 268,073 $ 253,804 $ 125,399 $ 246,986 $ 25,953 $ 1,101,263 Special Mention 6 — — — 686 — — — 686 Substandard 7 — — — — — 891 79 970 Doubtful 8 — — — — — — — — Loss 9 — — — — — — — — Loans not formally risk rated (1) — — — — — — — — Total $ 29,286 $ 151,762 $ 268,073 $ 254,490 $ 125,399 $ 247,877 $ 26,032 $ 1,102,919 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Home Equity Grade: Pass 1-5 $ — $ — $ — $ — $ — $ 67 $ 99,141 $ 99,208 Special Mention 6 — — — — — — — — Substandard 7 — — — — — — — — Doubtful 8 — — — — — — — — Loss 9 — — — — — — — — Loans not formally risk rated (1) — — — — — — — — Total $ — $ — $ — $ — $ — $ 67 $ 99,141 $ 99,208 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial Real Estate Grade: Pass 1-5 $ 8,600 $ 391,464 $ 328,546 $ 59,452 $ 102,632 $ 261,893 $ 30,951 $ 1,183,538 Special Mention 6 — — — — — 11,852 — 11,852 Substandard 7 — — — — — — — — Doubtful 8 — — — — — — — — Loss 9 — — — — — — — — Loans not formally risk rated (1) — — — — — — — — Total $ 8,600 $ 391,464 $ 328,546 $ 59,452 $ 102,632 $ 273,745 $ 30,951 $ 1,195,390 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Multi-Family Grade: Pass 1-5 $ — $ 7,579 $ 148,419 $ 71,952 $ 36,502 $ 56,672 $ — $ 321,124 Special Mention 6 — — — — — — — — Substandard 7 — — — — — — — — Doubtful 8 — — — — — — — — Loss 9 — — — — — — — — Loans not formally risk rated (1) — — — — — — — — Total $ — $ 7,579 $ 148,419 $ 71,952 $ 36,502 $ 56,672 $ — $ 321,124 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Term Loans Amortized Cost Basis by Origination Year (in thousands) Risk Rating 2024 2023 2022 2021 2020 Prior Revolving Loans Total Construction and Land Development Grade: Pass 1-5 $ 21,579 $ 174,959 $ 244,017 $ 50,137 $ 6,594 $ 8,314 $ 26,816 $ 532,416 Special Mention 6 — — 2,965 — — — — 2,965 Substandard 7 — — — — — — — — Doubtful 8 — — — — — 10 — 10 Loss 9 — — — — — — — — Loans not formally risk rated (1) — — — — — — — — Total $ 21,579 $ 174,959 $ 246,982 $ 50,137 $ 6,594 $ 8,324 $ 26,816 $ 535,391 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial and Industrial Grade: Pass 1-5 $ 13,110 $ 63,607 $ 85,288 $ 44,504 $ 8,944 $ 16,433 $ 258,288 $ 490,174 Special Mention 6 — — — — — 468 — 468 Substandard 7 — — — — — 3,762 4,586 8,348 Doubtful 8 — — — — — — — — Loss 9 — — — — — — — — Loans not formally risk rated (1) — — — — — — — — Total $ 13,110 $ 63,607 $ 85,288 $ 44,504 $ 8,944 $ 20,663 $ 262,874 $ 498,990 Current period gross charge-offs $ — $ — $ — $ 250 $ — $ 119 $ — $ 369 Consumer Grade: Pass 1-5 $ — $ — $ — $ — $ — $ — $ — $ — Special Mention 6 — — — — — — — — Substandard 7 — — — — — — — — Doubtful 8 — — — — — — — — Loss 9 — — — — — — — — Loans not formally risk rated (1) 6,019 35,385 78,783 54,792 10,198 19,688 1,927 206,792 Total $ 6,019 $ 35,385 $ 78,783 $ 54,792 $ 10,198 $ 19,688 $ 1,927 $ 206,792 Current period gross charge-offs $ — $ 19 $ 888 $ 520 $ 23 $ 115 $ 8 $ 1,573 Total Loans Grade: Pass 1-5 $ 72,575 $ 789,371 $ 1,074,343 $ 479,849 $ 280,071 $ 590,365 $ 441,149 $ 3,727,723 Special Mention 6 — — 2,965 686 — 12,320 — 15,971 Substandard 7 — — — — — 4,653 4,665 9,318 Doubtful 8 — — — — — 10 — 10 Loss 9 — — — — — — — — Loans not formally risk rated (1) 6,019 35,385 78,783 54,792 10,198 19,688 1,927 206,792 Total $ 78,594 $ 824,756 $ 1,156,091 $ 535,327 $ 290,269 $ 627,036 $ 447,741 $ 3,959,814 Current period gross charge-offs $ — $ 19 $ 888 $ 770 $ 23 $ 234 $ 8 $ 1,942 (1) Consumer loans are not formally risk rated and included $1.4 million of loans on non-accrual as of March 31, 2024. The following table presents the amortized cost of loans receivable by internal risk grade by year of origination as of December 31, 2023. Also presented are current period gross charge-offs by loan type and vintage year for the three months ended December 31, 2023: Term Loans Amortized Cost Basis by Origination Year (in thousands) Risk Rating 2023 2022 2021 2020 2019 Prior Revolving Loans Total One-to-Four-Family Residential Grade: Pass 1-5 $ 152,802 $ 272,447 $ 256,666 $ 128,181 $ 78,739 $ 174,586 $ 33,088 $ 1,096,509 Special Mention 6 — — — — — — — — Substandard 7 — — — — — 898 79 977 Doubtful 8 — — — — — — — — Loss 9 — — — — — — — — Loans not formally risk rated (1) — — — — — — — — Total $ 152,802 $ 272,447 $ 256,666 $ 128,181 $ 78,739 $ 175,484 $ 33,167 $ 1,097,486 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Home Equity Grade: Pass 1-5 $ — $ — $ — $ — $ — $ 69 $ 97,201 $ 97,270 Special Mention 6 — — — — — — — — Substandard 7 — — — — — — — — Doubtful 8 — — — — — — — — Loss 9 — — — — — — — — Loans not formally risk rated (1) — — — — — — — — Total $ — $ — $ — $ — $ — $ 69 $ 97,201 $ 97,270 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial Real Estate Grade: Pass 1-5 $ 380,858 $ 319,868 $ 59,555 $ 102,791 $ 99,316 $ 165,670 $ 29,904 $ 1,157,962 Special Mention 6 — — — — 6,183 5,714 — 11,897 Substandard 7 — — — — — — — — Doubtful 8 — — — — — — — — Loss 9 — — — — — — — — Loans not formally risk rated (1) — — — — — — — — Total $ 380,858 $ 319,868 $ 59,555 $ 102,791 $ 105,499 $ 171,384 $ 29,904 $ 1,169,859 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Multi-Family Grade: Pass 1-5 $ 7,583 $ 101,550 $ 22,358 $ 21,671 $ 42,776 $ 14,044 $ — $ 209,982 Special Mention 6 — — — — — — — — Substandard 7 — — — — — — — — Doubtful 8 — — — — — — — — Loss 9 — — — — — — — — Loans not formally risk rated (1) — — — — — — — — Total $ 7,583 $ 101,550 $ 22,358 $ 21,671 $ 42,776 $ 14,044 $ — $ 209,982 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Construction and Land Development Grade: Pass 1-5 $ 157,380 $ 305,558 $ 127,720 $ 20,929 $ 10,333 $ — $ 893 $ 622,813 Special Mention 6 — — — — — — — — Substandard 7 — — — — — — — — Doubtful 8 — — — — — 10 — 10 Loss 9 — — — — — — — — Loans not formally risk rated (1) — — — — — — — — Total $ 157,380 $ 305,558 $ 127,720 $ 20,929 $ 10,333 $ 10 $ 893 $ 622,823 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial and Industrial Grade: Pass 1-5 $ 58,678 $ 88,286 $ 45,960 $ 8,080 $ 3,038 $ 16,178 $ 262,506 $ 482,726 Special Mention 6 — — 250 — — 475 — 725 Substandard 7 — — — — 119 3,762 4,586 8,467 Doubtful 8 — — — — — — — — Loss 9 — — — — — — — — Loans not formally risk rated (1) — — — — — — — — Total $ 58,678 $ 88,286 $ 46,210 $ 8,080 $ 3,157 $ 20,415 $ 267,092 $ 491,918 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Term Loans Amortized Cost Basis by Origination Year (in thousands) Risk Rating 2023 2022 2021 2020 2019 Prior Revolving Loans Total Consumer Grade: Pass 1-5 $ — $ — $ — $ — $ — $ — $ — $ — Special Mention 6 — — — — — — — — Substandard 7 — — — — — — — — Doubtful 8 — — — — — — — — Loss 9 — — — — — — — — Loans not formally risk rated (1) 36,453 83,720 53,404 9,826 10,896 8,700 1,872 204,871 Total $ 36,453 $ 83,720 $ 53,404 $ 9,826 $ 10,896 $ 8,700 $ 1,872 $ 204,871 Current period gross charge-offs $ 42 $ 572 $ 585 $ 228 $ 72 $ 18 $ 1 $ 1,518 Total Loans Grade: Pass 1-5 $ 757,301 $ 1,087,709 $ 512,259 $ 281,652 $ 234,202 $ 370,547 $ 423,592 $ 3,667,262 Special Mention 6 — — 250 — 6,183 6,189 — 12,622 Substandard 7 — — — — 119 4,660 4,665 9,444 Doubtful 8 — — — — — 10 — 10 Loss 9 — — — — — — — — Loans not formally risk rated (1) 36,453 83,720 53,404 9,826 10,896 8,700 1,872 204,871 Total $ 793,754 $ 1,171,429 $ 565,913 $ 291,478 $ 251,400 $ 390,106 $ 430,129 $ 3,894,209 Current period gross charge-offs $ 42 $ 572 $ 585 $ 228 $ 72 $ 18 $ 1 $ 1,518 (1) Consumer loans are not formally risk rated and included $1.5 million of loans on non-accrual as of December 31, 2023. The following table presents an analysis of the change in the ACL by major loan segment for the periods stated: For the Three Months Ended March 31, 2024 One-to-Four Construction Family Commercial and Land Commercial and Residential Home Equity Real Estate Multi-Family Development Industrial Consumer Unallocated Total (in thousands) Balance at December 31, 2023 $ 1,835 $ 117 $ 5,698 $ 378 $ 7,630 $ 10,878 $ 5,686 $ — $ 32,222 Provision (benefit) for credit losses 102 12 347 200 (1,896) 434 4,691 3,890 Charge-offs — — — — — (369) (1,573) — (1,942) Recoveries of loans previously charged-off — — — — — 36 100 — 136 Balance at March 31, 2024 $ 1,937 $ 129 $ 6,045 $ 578 $ 5,734 $ 10,979 $ 8,904 $ — $ 34,306 For the Three Months Ended March 31, 2023 One to Four Family Commercial Construction and Commercial and Residential Home Equity Real Estate Multi-Family Land Development Industrial Consumer Unallocated Total (in thousands) Balance at December 31, 2022 $ 3,485 $ 258 $ 5,785 $ 753 $ 3,846 $ 8,255 $ 1,403 $ 1,243 $ 25,028 Adjustment to allowance for adoption of ASU 2016-13 266 13 822 — (246) 932 615 (1,243) 1,159 Provision (benefit) for credit losses (373) 24 839 90 (53) 1,294 251 — 2,072 Charge offs — — — — — — (637) — (637) Recoveries of loans previously charged off — — 12 — — — 297 — 309 Balance at March 31, 2023 $ 3,378 $ 295 $ 7,458 $ 843 $ 3,547 $ 10,481 $ 1,929 $ — $ 27,931 The following table presents the amortized cost of collateral-dependent loans of March 31, 2024 and December 31, 2023: As of March 31, 2024 December 31, 2023 (in thousands) One-to-four-family residential $ 970 $ 977 Construction and land development 10 10 Commercial and industrial 8,348 8,443 Total $ 9,328 $ 9,430 The Company closely monitors the performance of borrowers experiencing financial difficulty to understand the effectiveness of its loan modification efforts. The Company did not modify any loans to borrowers experiencing financial difficulty during the three months ended March 31, 2024 and 2023. |
Employee Benefits
Employee Benefits | 3 Months Ended |
Mar. 31, 2024 | |
Employee Benefits | |
Employee Benefits | Note 5 – Employee Benefits Employee Pension Plan The Company determined to freeze benefit accruals and withdraw from the CBERA Plan as of December 31, 2023. For the three months ended March 31, 2024, an expense of $390,000 was recorded to reflect an increase in the liability related to the withdrawal from the Plan. The increase was primarily driven by final computations for estimated payouts to participants. In March 2024, the final increase to reflect the withdrawal liability was determined to be $390,000. The Company accrued for this amount at March 31, 2024 and withdrew from the Plan in the second quarter of 2024. Director Pension Plan overing directors who were in service prior to 2023 and have met the plan’s vesting requirements The liability for the Director Pension Plan amounted to $5.8 million and $5.7 million as of March 31, 2024 and December 31, 2023, respectively, and are recorded on the consolidated balance sheets. The Company records an estimate of net periodic pension cost for the director pension plan to accrued retirement liabilities on the consolidated balance sheet on a quarterly basis. Equity adjustments, to accumulated other comprehensive loss, in conjunction with the pension plan are recorded by the Company annually upon receipt of the independent actuarial report. Deferred Compensation Plans The employees vest at varying dates in accordance with each individual’s deferred compensation participation agreement; however, all key officers will be fully vested upon the attainment of age 65. The obligations under these plans are included in accrued retirement liabilities on the Company’s consolidated balance sheets and approximated $2.5 million and $2.4 million as of March 31, 2024 and December 31, 2023, respectively. The expense under these plans (recorded in salaries and employee benefits in the consolidated statements of income) approximated $100,000 and $89,000 for the three months ended March 31, 2024 and March 31, 2023, respectively. Long-Term Incentive Plan 401(k) Plan – The Company has an employee tax deferred incentive plan (the “401(k) plan”) under which the Company makes voluntary contributions within certain limitations. All employees who meet specified age and length of service requirements are eligible to participate in the 401(k) plan. The amount contributed by the Company to the 401(k) Plan is included in salaries and employee benefits expense. The amounts contributed to the 401(k) plan for the three months ended March 31, 2024 and 2023 were $619,000 and $522,000 , respectively. Employment and Change in Control Agreements st Employee Stock Ownership Plan – The Company accounts for its ESOP in accordance with FASB ASC 718-40, Compensation – Stock Compensation The Company recognizes compensation expense equal to the fair value of the ESOP shares during the periods in which they are committed to be released. To the extent that the fair value of the Company’s ESOP shares differs from the cost of such shares, the difference will be credited or debited to shareholders' equity. As the loan is internally leveraged, the loan receivable from the ESOP to the Company is not reported as an asset nor is the debt of the ESOP shown as a liability on the Company’s consolidated balance sheets. Total compensation expense recognized in connection with the ESOP was $588,000 for the three months ended March 31, 2024. The Company did not recognize any compensation expense related to the ESOP for the three months ended March 31, 2023. The following table presents share information held by the ESOP: As of March 31, 2024 December 31, 2023 (Dollars in thousands) Allocated shares — — Shares committed to be released 42,121 — Unallocated shares 3,374,337 1,000,000 Total shares 3,416,458 1,000,000 Fair value of unallocated shares $ 46,093 $ 13,400 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Measurements | |
Fair Value Measurements | Note 6 – Fair Value Measurements ASC 820-10, Fair Value Measurement – Overall In accordance with ASC 820-10, Fair Value Measurement – Overall Level 1 – Valuations for assets and liabilities traded in active exchange markets, such as the New York Stock Exchange. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. Level 2 – Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third party pricing services for identical or comparable assets or liabilities. Level 3 – Valuations for assets and liabilities that are derived from other methodologies, including option pricing models, discounted cash flow models and similar techniques, and are not based on market exchange, dealer, or broker traded transactions. Level 3 valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets and liabilities. A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. These valuation methodologies were applied to all of the Company’s financial assets and financial liabilities carried at fair value for March 31, 2024 and December 31, 2023. Available-for-sale investment securities – Derivative arrangements – Assets measured and reported at estimated fair value on a recurring basis are summarized below: March 31, 2024 Level 1 Level 2 Level 3 Fair Value Assets: (in thousands) Available-for-sale debt securities: U.S. Treasury securities $ 77,422 $ — $ — $ 77,422 U.S. Government agencies — 3,999 — 3,999 Agency mortgage-backed securities — 10,925 — 10,925 Agency collateralized mortgage obligations — 2,260 — 2,260 Corporate bonds — 84,618 9,868 94,486 Municipal obligations — 18,077 — 18,077 Total available-for-sale debt securities $ 77,422 $ 119,879 $ 9,868 $ 207,169 Derivative assets $ — $ 29,291 $ — $ 29,291 Liabilities: Derivative liabilities $ — $ 29,298 $ — $ 29,298 December 31, 2023 Level 1 Level 2 Level 3 Fair Value Assets: (in thousands) Available-for-sale debt securities: U.S. Treasury securities $ 64,352 $ — $ — $ 64,352 Agency mortgage-backed securities — 11,430 — 11,430 Agency collateralized mortgage obligations — 2,418 — 2,418 Corporate bonds — 82,367 9,868 92,235 Municipal obligations — 19,030 — 19,030 Total available-for-sale debt securities $ 64,352 $ 115,245 $ 9,868 $ 189,465 Derivative assets $ — $ 27,769 $ — $ 27,769 Liabilities: Derivative liabilities $ — $ 27,786 $ — $ 27,786 The Company had no purchases, sales, transfers or changes in fair value of level 3 assets during the three months ended March 31, 2024 and 2023. The Company may also be required from time to time to measure certain other assets on a non-recurring basis in accordance with GAAP. Any adjustments to fair value usually result in write-downs of individual assets. Collateral-Dependent Loans A loan may have multiple types of collateral; however, the majority of the Company’s loan collateral is real estate. The value of real estate collateral is generally determined utilizing a market valuation approach based on an appraisal conducted by an independent, licensed appraiser outside of the Company using observable market data (Level 2). However, if the collateral value is significantly adjusted due to differences in the comparable properties or is discounted by the Company because of lack of marketability, then the fair value is considered Level 3. The value of business equipment is based upon an outside appraisal if deemed significant or the net book value on the applicable borrower’s financial statements if not considered significant. Likewise, values for inventory and accounts receivables collateral are based on financial statement balances or aging reports (Level 3). Fair value adjustments are recorded in the period incurred as provision for credit losses in the consolidated statements of income. Mortgage Servicing Rights The Company had no liabilities measured at fair value on a non-recurring basis. The following table summarizes assets measured at fair value on a non-recurring basis: March 31, 2024 Level 1 Level 2 Level 3 Fair Value (in thousands) Collateral-dependent loans $ — $ — $ 4,330 $ 4,330 Mortgage servicing rights $ — $ — $ 2,581 $ 2,581 December 31, 2023 Level 1 Level 2 Level 3 Fair Value (in thousands) Collateral-dependent loans $ — $ — $ 4,432 $ 4,432 Mortgage servicing rights $ — $ — $ 2,640 $ 2,640 For Level 3 assets and liabilities measured at fair value on a nonrecurring basis as of March 31, 2024 and December 31, 2023, the significant unobservable inputs used in the fair value measurements were as follows: Significant Significant Valuation Observable Unobservable Technique Inputs Inputs Collateral-dependent loans Appraisal Value/ Comparison Sales Appraisals and/or sales of comparable properties Appraisals discounted 5 to 20% for sales commission and other holding costs Mortgage servicing rights Discounted Cash Flows Comparable sales Weighted average discount rate - 12% Constant prepayment rate – ASC Topic 825, Financial Instruments ASC Topic 825, Financial Instruments The following tables present the estimated fair values, related carrying amounts, and valuation level of the financial instruments as of the dates stated: March 31, 2024 Carrying Fair Amount Value Level 1 Level 2 Level 3 (In thousands) Financial Assets: Cash and cash equivalents $ 315,031 $ 315,031 $ 315,031 $ — $ — Loans receivable, net 3,920,317 3,800,573 — — 3,800,573 Accrued interest receivable 17,843 17,843 17,843 — — Federal Home Loan Bank stock 4,357 4,357 — 4,357 — Federal Reserve Bank stock 10,319 10,319 — 10,319 — Non-public investments 13,619 13,619 — — 13,619 Bank-owned life insurance ("BOLI") 50,917 50,917 — 50,917 — Financial Liabilities: Deposits, other than time deposits $ 2,008,407 $ 2,008,407 $ 2,008,407 $ — $ — Time deposits 1,763,646 1,760,995 — 1,760,995 — FHLB Borrowings 60,837 60,627 — 60,627 — December 31, 2023 Carrying Fair Amount Value Level 1 Level 2 Level 3 (In thousands) Financial Assets: Cash and cash equivalents $ 272,591 $ 272,591 $ 272,591 $ — $ — Loans receivable, net 3,857,057 3,732,361 — — 3,732,361 Accrued interest receivable 17,284 17,284 17,284 — — Federal Home Loan Bank stock 14,558 14,558 — 14,558 — Federal Reserve Bank stock 10,323 10,323 — 10,323 — Non-public investments 13,852 13,852 — — 13,852 Bank-owned life insurance ("BOLI") 50,516 50,516 — 50,516 — Financial Liabilities: Deposits, other than time deposits $ 1,890,313 $ 1,890,313 $ 1,890,313 $ — $ — Time deposits 1,497,035 1,495,008 — 1,495,008 — FHLB Borrowings 283,338 283,172 — 283,172 — |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Note 7 – Commitments and Contingencies The Company is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to originate loans, to disburse funds to borrowers on unused construction and land development loans, and to disburse funds on committed but unused lines of credit. These financial agreements involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the balance sheet. The contract amounts of these instruments reflect the extent of involvement the Company has in particular classes of financial instruments. Commitments to originate loans and disburse additional funds to borrowers on lines of credit are agreements to lend to a customer provided there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the borrower. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for loan commitments, is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. The commitments to originate loans and lines of credit may expire without being funded or drawn upon; therefore, the total commitment amounts do not necessarily represent future cash requirements. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance by a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. As of March 31, 2024 and December 31, 2023, the maximum potential amount of the Company’s obligation was $7.3 million and $7.5 million, respectively, for standby letters of credit. The Company’s outstanding letters of credit generally have a term of less than one year. If a letter of credit is drawn upon, the Company may seek recourse through the customer’s underlying line of credit. If the customer’s line of credit is also in default, the Company may take possession of the collateral, if any, securing the line of credit. Financial instruments whose contract amounts represents off-balance sheet credit risk and are not reflected on the Company’s consolidated balance sheets consist of the following at the dates stated: As of March 31, 2024 December 31, 2023 (In thousands) Commitments to originate loans $ 73,625 $ 79,191 Unadvanced funds on lines of credit 472,037 490,847 Unadvanced funds on construction loans 594,431 542,893 Letters of credit 7,340 7,471 $ 1,147,433 $ 1,120,402 The Bank accrues for credit losses related to off-balance sheet financial instruments. Potential losses on off-balance sheet loan commitments are estimated using the same risk factors used to determine the allowance for credit losses on loans, adjusted for the likelihood that funding will occur. The allowance for off-balance sheet commitments is recorded within other liabilities on the consolidated balance sheets and amounted to $ 6.6 million and $6.0 million as of March 31, 2024 and December 31, 2023, respectively. For the three months ended March 31, 2024, a provision for unfunded commitments of $539,000 was recorded. No provision for unfunded commitments was recorded during the three months ended March 31, 2023. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 3 Months Ended |
Mar. 31, 2024 | |
Derivatives and Hedging Activities | |
Derivatives and Hedging Activities | Note 8 – Derivatives and Hedging Activities Risk Management Objective of Using Derivatives The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s assets and liabilities. Fair Value Hedges of Interest Rate Risk For derivatives designated and that qualify as fair value hedges, the gain or loss on the derivative as well as the offsetting gain or loss on the hedged item attributable to the hedged risk are recognized in interest income. The Company had previously entered into two “last of layer hedges” on a significant portion of its fixed rate residential loan pool. These amounts include the amortized cost basis of closed portfolios used to designate hedging relationships in which the hedged item is the last layer expected to remain at the end of the hedging relationship. During September 2021, the Company terminated these last of layer hedges by paying out $2.15 million to the respective third parties. These fees were capitalized into loans receivable and are being amortized against loan income over the contractual lives of the remaining designated residential loans. The unamortized amount of this cost basis adjustment is $1.0 million and $1.0 million at March 31, 2024 and December 31, 2023, respectively. During the three months ended March 31, 2024 and 2023, the Company recognized amortization expense related to this cost basis adjustment of Non-designated Hedges The Company executes interest rate swaps and cap agreements with commercial banking customers to facilitate its respective risk management strategies. Those interest rate swap and cap agreements are simultaneously hedged by offsetting interest rate swaps and caps that are executed with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. As of March 31, 2024, the Company had 54 interest rate swap agreements with an aggregate notional amount of $340.9 million compared to 52 interest rate swap agreements and one interest rate cap agreement with an aggregate notional amount of $338.6 million related to this program as of December 31, 2023. Risk Participation Agreements As of March 31, 2024, the Company had 17 RPAs with an aggregate notional amount of $45.0 million related to this program compared to 16 RPAs with an aggregate notional amount of $44.5 million as of December 31, 2023. These RPAs all represent “participations-in” and generally have terms ranging from five The table below presents the fair value of the Company’s derivative financial instruments not designated as hedging instruments, as well as their classification on the consolidated balance sheets as of the dates stated: Derivative Derivative Assets (1) Liabilities (2) March 31, 2024 (in thousands) Derivatives not designated as hedging instruments: Interest rate products $ 29,291 $ 29,291 RPA credit contracts — 7 Total derivatives not designated as hedging instruments $ 29,291 $ 29,298 December 31, 2023 Derivatives not designated as hedging instruments: Interest rate products $ 27,769 $ 27,769 RPA credit contracts — 17 Total derivatives not designated as hedging instruments $ 27,769 $ 27,786 (1) Recorded in prepaid expenses and other assets on the consolidated balance sheets. (2) Recorded in accrued expenses and other liabilities on the consolidated balance sheets. The table below presents the financial impact of the Company’s derivative financial instruments not designated as hedges in the consolidated statements of income, caused by changes in fair value for the periods indicated: Location of Gain or (Loss) Recognized Three months ended March 31, in Income on Derivative 2024 2023 (in thousands) Derivatives Not Designated as Hedging Instruments: RPA credit contracts-fair value adjustments Other non-interest income $ 10 $ (3) Swap contract fees, net of brokerage costs, recognized in earnings on the above noted interest rate products and RPA contracts approximated $487,000 and $95,000 for the three months ended March 31, 2024 and 2023, respectively. The Company has agreements with each of its derivative counterparties that contain a provision where if the Company defaults (or is capable of being declared in default) on any of its indebtedness, then the Company could also be declared in default on its derivative obligations, and it could be required to terminate its derivative positions with the counterparty. The Company also has agreements with certain of its derivative counterparties that contain a provision whereby if the counterparty fails to maintain its status as a well-capitalized institution, then the Company could be required to terminate its derivative positions with the counterparty. In order to mitigate counterparty default risk in conjunction with these interest rate products and RPA credit contracts, the Company was required to maintain $9.1 million of collateral deposit accounts with the counterparties to these agreements as of March 31, 2024 and December 31, 2023. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2024 | |
Other Comprehensive Income (Loss) | |
Other Comprehensive Income (Loss) | Note 9 – Other Comprehensive Income (Loss) Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities are reported as a separate component of the shareholders' equity section of the consolidated balance sheets, such items, along with net income, are components of comprehensive income (loss). The components of other comprehensive income (loss) and related tax effects are as follows for the three months ended March 31, 2024 and 2023: For the Three Months Ended March 31, 2024 March 31, 2023 (In thousands) Pre-Tax Tax (Expense) After-Tax Pre-Tax Tax (Expense) After-Tax Amount Benefit Amount Amount Benefit Amount Change in fair value of available-for-sale securities $ 295 $ (83) $ 212 $ 1,713 $ (430) $ 1,283 Less: Reclassification adjustment for realized gains in net income — — — — — — Net change in fair value of available-for-sale securities 295 (83) 212 1,713 (430) 1,283 Change in fair value of cash flow hedge — — — (271) 76 (195) Less: Net cash flow hedge gains (losses) reclassified into interest income or interest expense — — — — — — Net change in fair value of cash flow hedge, net of tax — — — (271) 76 (195) Total other comprehensive income (loss) $ 295 $ (83) $ 212 $ 1,442 $ (354) $ 1,088 The following table presents the components of accumulated other comprehensive loss as of March 31, 2024 and December 31, 2023: As of March 31, 2024 December 31, 2023 (In thousands) Net unrealized holding losses on securities available-for-sale, net of tax $ (10,716) $ (10,928) Unrecognized director pension plan benefits, net of tax (969) (969) Total accumulated other comprehensive loss $ (11,685) $ (11,897) |
Regulatory Capital Requirements
Regulatory Capital Requirements | 3 Months Ended |
Mar. 31, 2024 | |
Regulatory Capital Requirements | |
Regulatory Capital Requirements | Note 10 – Regulatory Capital Requirements The Company is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under regulatory capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company must meet specific capital guidelines that involve quantitative measures of the Company’s assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Effective January 1, 2020, the federal banking agencies published a final rule on a Community Bank Leverage Ratio (“CBLR”) Framework that provides a simplified measure of capital adequacy for qualified community banking organizations. Management had determined that the Company meets the standards to qualify under the CBLR framework and opted into this framework for FDIC call reporting purposes during 2020. Under the CBLR framework, a bank that maintains a CBLR of 9% (defined as Tier 1 capital divided by total average assets) is considered to have satisfied its capital requirements, determined to be well-capitalized, and will no longer be required to calculate risk-based capital ratios. As of December 31, 2023 the Bank met the minimum requirement with a CBLR of 13.6%. As of March 31, 2024, the Company did not meet the requirement for the CBLR framework due to its unfunded loan commitments being over 25.00% of its capital for more than two consecutive quarters. As a result, the Company operated under the risk-based framework for the three months ended March 31, 2024. Under this framework, quantitative measures established by regulation to ensure capital adequacy require the Company to maintain minimum amounts and ratios of Total Capital, Tier 1 Capital and Common Equity Tier 1 Capital to Risk-Weighted Assets, and Tier 1 Capital to Total Average Assets (as defined in the regulations). Management believes, as of March 31, 2024, that the Company and the Bank meet all capital adequacy requirements to which each is subject. As of March 31, 2024, the Company and the Bank were categorized as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum total risk-based, Tier 1 risk-based, Common Equity Tier 1 risk-based and Tier 1 leverage ratios as set forth in the table below. There are no conditions or events since that notification that management believes have changed the Bank’s category. The Bank’s actual capital amounts and ratios are presented in the table as of the dates indicated: To be well capitalized For minimum capital under prompt corrective Actual adequacy purposes action provisions Amount Ratio Amount Ratio Amount Ratio March 31, 2024 (in thousands) Total Capital $ 636,094 14.5% $ 350,080 8.0% $ 437,600 10.0% (to Risk-Weighted Assets) Tier 1 Capital 595,235 13.6% 262,560 6.0% 350,080 8.0% (to Risk-Weighted Assets) Common Equity Tier I Capital 595,235 13.6% 196,920 4.5% 284,440 6.5% (to Risk-Weighted Assets) Tier 1 Capital 595,235 13.5% 176,339 4.0% 220,423 5.0% (to Total Average Assets) The Company’s consolidated capital ratios are consistent with the Bank’s regulatory capital ratios as reported above for March 31, 2024 and December 31, 2023. |
Earnings Per Share ("EPS)
Earnings Per Share ("EPS) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share ("EPS) | |
Earnings Per Share ("EPS) | Note 11 – Earnings Per Share (“EPS”) Basic EPS represents net income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share have been calculated in a manner similar to that of basic earnings per share except that the weighted average number of common shares outstanding is increased to include the number of additional common shares that would have been outstanding if all potentially dilutive common shares (such as those resulting from the exercise of stock options) were issued during the period, computed using the treasury stock method. There were no securities that had a dilutive effect during the three months ended March 31, 2024 and 2023. Unallocated ESOP shares are not deemed outstanding for earnings per share calculations. For the Three Months Ended March 31, 2024 2023 (Dollars in thousands, except per share data) Net income applicable to common shares $ 8,701 $ N/A Average number of common shares outstanding 42,705,729 N/A Less: average unallocated ESOP shares (3,016,085) N/A Average number of common shares outstanding used to calculate basic EPS 39,689,644 N/A Common stock equivalents — N/A Average number of common shares outstanding used to calculate diluted EPS 39,689,644 N/A Earnings per common share: N/A Basic and diluted $ 0.22 $ N/A For the three months ended March 31, 2024, there were no anti-dilutive shares. |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Investment Securities | |
Schedule of amortized cost and estimated fair values of securities classified as Available-for-Sale | Amortized Unrealized Unrealized Allowance for Cost Gain Loss Credit Losses Fair Value March 31, 2024 (in thousands) Available-for-Sale Debt Securities: U.S. Treasury securities $ 79,796 $ 1 $ (2,375) $ — $ 77,422 U.S. Government agencies 3,998 1 — — 3,999 Agency mortgage-backed securities 12,792 3 (1,870) — 10,925 Agency collateralized mortgage obligations 2,849 1 (590) — 2,260 Corporate bonds 103,235 11 (8,760) — 94,486 Municipal obligations 19,008 — (931) — 18,077 Total $ 221,678 $ 17 $ (14,526) $ — $ 207,169 Amortized Unrealized Unrealized Allowance for Cost Gain Loss Credit Losses Fair Value December 31, 2023 (in thousands) Available-for-Sale Debt Securities: U.S. Treasury securities $ 66,874 $ 27 $ (2,549) $ — $ 64,352 Agency mortgage-backed securities 13,154 5 (1,729) — 11,430 Agency collateralized mortgage obligations 2,987 — (569) — 2,418 Corporate bonds 101,244 5 (9,014) — 92,235 Municipal obligations 20,010 — (980) — 19,030 Total $ 204,269 $ 37 $ (14,841) $ — $ 189,465 |
Schedule of maturities of securities available for sale | Available-for-Sale Amortized Cost Fair Value (in thousands) Within one year $ 71,869 $ 71,483 Over one year to five years 98,678 92,531 Over five years to ten years 35,490 29,970 206,037 193,984 Agency mortgage-backed securities 12,792 10,925 Agency collateralized mortgage obligations 2,849 2,260 $ 221,678 $ 207,169 |
Schedule of fair value and gross unrealized losses, individual securities have been in a continuous unrealized loss position | Less than 12 Months 12 Months or More Total (Dollars in thousands) Gross Gross Gross Unrealized Fair Unrealized Fair Unrealized Fair March 31, 2024 Number of Securities Losses Value Losses Value Losses Value U. S. Treasuries 19 $ (23) $ 27,816 $ (2,352) $ 44,632 $ (2,375) $ 72,448 U.S. Government Agencies 0 — — — — — — Agency mortgage-backed securities 19 — 55 (1,870) 10,639 (1,870) 10,694 Agency collateralized mortgage obligations 5 — — (590) 2,260 (590) 2,260 Corporate bonds 32 (1,135) 6,866 (7,625) 75,610 (8,760) 82,476 Municipal obligations 12 (183) 1,817 (748) 16,260 (931) 18,077 Total 87 $ (1,341) $ 36,554 $ (13,185) $ 149,401 $ (14,526) $ 185,955 Less than 12 Months 12 Months or More Total (Dollars in thousands) Gross Gross Gross Unrealized Fair Unrealized Fair Unrealized Fair December 31, 2023 Number of Securities Losses Value Losses Value Losses Value U.S. Treasury securities 15 $ (95) $ 7,884 $ (2,454) $ 46,515 $ (2,549) $ 54,399 Agency mortgage-backed securities 18 — — (1,729) 11,124 (1,729) 11,124 Agency collateralized mortgage obligations 5 — — (569) 2,418 (569) 2,418 Corporate bonds 33 (1,135) 6,866 (7,879) 78,365 (9,014) 85,231 Municipal obligations 13 (181) 1,819 (799) 17,211 (980) 19,030 Total 84 $ (1,411) $ 16,569 $ (13,430) $ 155,633 $ (14,841) $ 172,202 |
Loans Receivable, Allowance f_2
Loans Receivable, Allowance for Credit Losses and Credit Quality (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Loans Receivable, Allowance for Credit Losses and Credit Quality | |
Schedule of Loans | Loans consist of the following as of the dates stated: March 31, 2024 December 31, 2023 Amount Percent Amount Percent (Dollars in thousands) One-to-four-family residential $ 1,102,919 27.85 % $ 1,097,486 28.18 % Home equity 99,208 2.51 % 97,270 2.50 % Residential real estate 1,202,127 30.36 % 1,194,756 30.68 % Commercial real estate 1,195,390 30.19 % 1,169,859 30.04 % Multi-family residential 321,124 8.11 % 209,982 5.39 % Commercial real estate 1,516,514 38.30 % 1,379,841 35.43 % Construction and land development 535,391 13.52 % 622,823 15.99 % Commercial and industrial 498,990 12.60 % 491,918 12.63 % Commercial 2,550,895 64.42 % 2,494,582 64.06 % Consumer, net of premium/discount 206,792 5.22 % 204,871 5.26 % Total loans 3,959,814 100.00 % 3,894,209 100.00 % Deferred fees, net (5,191) (4,930) Allowance for credit losses (34,306) (32,222) Net loans $ 3,920,317 $ 3,857,057 |
Schedule of outstanding balances of consumer loan pools, shown net of premium (discount) | The outstanding balances of these consumer purchased loan pools, shown net of premium (discount) are as follows as of the dates stated: March 31, 2024 Gross Loan Premium (Discount) Net Loan (in thousands) Student loans $ 8,373 $ 47 $ 8,420 Boat and RV loans 55,575 1,353 56,928 Automobile loans 18,824 — 18,824 Solar panel loans 60,092 (5,360) 54,732 Home improvement loans 50,585 (23) 50,562 Total $ 193,449 $ (3,983) $ 189,466 December 31, 2023 Gross Loan Premium (Discount) Net Loan (in thousands) Student loans $ 8,989 $ 49 $ 9,038 Boat and RV loans 58,483 1,422 59,905 Automobile loans 14,662 — 14,662 Solar panel loans 61,430 (5,443) 55,987 Home improvement loans 53,220 (26) 53,194 Total $ 196,784 $ (3,998) $ 192,786 |
Schedule of aging of the amortized cost of loans receivable by loan category | The following table presents the aging of the amortized cost of loans receivable by loan category as of the date stated: March 31, 2024 30-59 60-89 90 Days or Current Days Days More Past Due Total Loans Past Due Past Due Still Accruing Nonaccrual Loans (in thousands) Real estate loans: One-to-four-family residential $ 1,096,745 $ 1,618 $ 275 $ — $ 4,281 $ 1,102,919 Home equity 96,335 2,287 — — 586 99,208 Commercial real estate 1,190,344 4,144 480 — 422 1,195,390 Multi-family residential 321,124 — — — — 321,124 Construction and land development 535,381 — — — 10 535,391 Commercial and industrial 489,522 5,343 — — 4,125 498,990 Consumer 201,529 2,192 1,689 — 1,382 206,792 Total $ 3,930,980 $ 15,584 $ 2,444 $ — $ 10,806 $ 3,959,814 December 31, 2023 30-59 60-89 90 Days or Current Days Days More Past Due Total Loans Past Due Past Due Still Accruing Nonaccrual Loans (in thousands) Real estate loans: One-to-four-family residential $ 1,091,483 $ 1,903 $ — $ — $ 4,100 $ 1,097,486 Home equity 96,327 288 65 — 590 97,270 Commercial real estate 1,166,702 2,735 — — 422 1,169,859 Multi-family residential 209,982 — — — — 209,982 Construction and land development 622,813 — — — 10 622,823 Commercial and industrial 487,777 2 1 — 4,138 491,918 Consumer 198,450 3,928 955 — 1,538 204,871 Total $ 3,873,534 $ 8,856 $ 1,021 $ — $ 10,798 $ 3,894,209 |
Schedule of amortized cost of nonaccrual loans receivable by loan category | The following table presents the amortized cost of nonaccrual loans receivable by loan category as of the dates stated: March 31, 2024 December 31, 2023 Nonaccrual Nonaccrual Total Nonaccrual Nonaccrual Total Loans with Loans with Nonaccrual Loans with Loans with Nonaccrual No ACL an ACL Loans No ACL an ACL Loans (In thousands) Real estate loans: One-to-four-family residential $ 4,281 $ — $ 4,281 $ 4,100 $ — $ 4,100 Home equity 586 — 586 590 — 590 Commercial real estate 422 — 422 422 — 422 Multi-family residential — — — — — — Construction and land development 10 — 10 10 — 10 Commercial and industrial 363 3,762 4,125 376 3,762 4,138 Consumer 1,382 — 1,382 1,538 — 1,538 Total $ 7,044 $ 3,762 $ 10,806 $ 7,036 $ 3,762 $ 10,798 |
Schedule of amortized cost of loans receivable by internal risk grade by year of origination | The following table presents the amortized cost of loans receivable by internal risk grade by year of origination as of March 31, 2024. Also presented are current period gross charge-offs by loan type and vintage year for the three months ended March 31, 2024: Term Loans Amortized Cost Basis by Origination Year (in thousands) Risk Rating 2024 2023 2022 2021 2020 Prior Revolving Loans Total One-to-Four-Family Residential Grade: Pass 1-5 $ 29,286 $ 151,762 $ 268,073 $ 253,804 $ 125,399 $ 246,986 $ 25,953 $ 1,101,263 Special Mention 6 — — — 686 — — — 686 Substandard 7 — — — — — 891 79 970 Doubtful 8 — — — — — — — — Loss 9 — — — — — — — — Loans not formally risk rated (1) — — — — — — — — Total $ 29,286 $ 151,762 $ 268,073 $ 254,490 $ 125,399 $ 247,877 $ 26,032 $ 1,102,919 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Home Equity Grade: Pass 1-5 $ — $ — $ — $ — $ — $ 67 $ 99,141 $ 99,208 Special Mention 6 — — — — — — — — Substandard 7 — — — — — — — — Doubtful 8 — — — — — — — — Loss 9 — — — — — — — — Loans not formally risk rated (1) — — — — — — — — Total $ — $ — $ — $ — $ — $ 67 $ 99,141 $ 99,208 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial Real Estate Grade: Pass 1-5 $ 8,600 $ 391,464 $ 328,546 $ 59,452 $ 102,632 $ 261,893 $ 30,951 $ 1,183,538 Special Mention 6 — — — — — 11,852 — 11,852 Substandard 7 — — — — — — — — Doubtful 8 — — — — — — — — Loss 9 — — — — — — — — Loans not formally risk rated (1) — — — — — — — — Total $ 8,600 $ 391,464 $ 328,546 $ 59,452 $ 102,632 $ 273,745 $ 30,951 $ 1,195,390 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Multi-Family Grade: Pass 1-5 $ — $ 7,579 $ 148,419 $ 71,952 $ 36,502 $ 56,672 $ — $ 321,124 Special Mention 6 — — — — — — — — Substandard 7 — — — — — — — — Doubtful 8 — — — — — — — — Loss 9 — — — — — — — — Loans not formally risk rated (1) — — — — — — — — Total $ — $ 7,579 $ 148,419 $ 71,952 $ 36,502 $ 56,672 $ — $ 321,124 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Term Loans Amortized Cost Basis by Origination Year (in thousands) Risk Rating 2024 2023 2022 2021 2020 Prior Revolving Loans Total Construction and Land Development Grade: Pass 1-5 $ 21,579 $ 174,959 $ 244,017 $ 50,137 $ 6,594 $ 8,314 $ 26,816 $ 532,416 Special Mention 6 — — 2,965 — — — — 2,965 Substandard 7 — — — — — — — — Doubtful 8 — — — — — 10 — 10 Loss 9 — — — — — — — — Loans not formally risk rated (1) — — — — — — — — Total $ 21,579 $ 174,959 $ 246,982 $ 50,137 $ 6,594 $ 8,324 $ 26,816 $ 535,391 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial and Industrial Grade: Pass 1-5 $ 13,110 $ 63,607 $ 85,288 $ 44,504 $ 8,944 $ 16,433 $ 258,288 $ 490,174 Special Mention 6 — — — — — 468 — 468 Substandard 7 — — — — — 3,762 4,586 8,348 Doubtful 8 — — — — — — — — Loss 9 — — — — — — — — Loans not formally risk rated (1) — — — — — — — — Total $ 13,110 $ 63,607 $ 85,288 $ 44,504 $ 8,944 $ 20,663 $ 262,874 $ 498,990 Current period gross charge-offs $ — $ — $ — $ 250 $ — $ 119 $ — $ 369 Consumer Grade: Pass 1-5 $ — $ — $ — $ — $ — $ — $ — $ — Special Mention 6 — — — — — — — — Substandard 7 — — — — — — — — Doubtful 8 — — — — — — — — Loss 9 — — — — — — — — Loans not formally risk rated (1) 6,019 35,385 78,783 54,792 10,198 19,688 1,927 206,792 Total $ 6,019 $ 35,385 $ 78,783 $ 54,792 $ 10,198 $ 19,688 $ 1,927 $ 206,792 Current period gross charge-offs $ — $ 19 $ 888 $ 520 $ 23 $ 115 $ 8 $ 1,573 Total Loans Grade: Pass 1-5 $ 72,575 $ 789,371 $ 1,074,343 $ 479,849 $ 280,071 $ 590,365 $ 441,149 $ 3,727,723 Special Mention 6 — — 2,965 686 — 12,320 — 15,971 Substandard 7 — — — — — 4,653 4,665 9,318 Doubtful 8 — — — — — 10 — 10 Loss 9 — — — — — — — — Loans not formally risk rated (1) 6,019 35,385 78,783 54,792 10,198 19,688 1,927 206,792 Total $ 78,594 $ 824,756 $ 1,156,091 $ 535,327 $ 290,269 $ 627,036 $ 447,741 $ 3,959,814 Current period gross charge-offs $ — $ 19 $ 888 $ 770 $ 23 $ 234 $ 8 $ 1,942 (1) Consumer loans are not formally risk rated and included $1.4 million of loans on non-accrual as of March 31, 2024. The following table presents the amortized cost of loans receivable by internal risk grade by year of origination as of December 31, 2023. Also presented are current period gross charge-offs by loan type and vintage year for the three months ended December 31, 2023: Term Loans Amortized Cost Basis by Origination Year (in thousands) Risk Rating 2023 2022 2021 2020 2019 Prior Revolving Loans Total One-to-Four-Family Residential Grade: Pass 1-5 $ 152,802 $ 272,447 $ 256,666 $ 128,181 $ 78,739 $ 174,586 $ 33,088 $ 1,096,509 Special Mention 6 — — — — — — — — Substandard 7 — — — — — 898 79 977 Doubtful 8 — — — — — — — — Loss 9 — — — — — — — — Loans not formally risk rated (1) — — — — — — — — Total $ 152,802 $ 272,447 $ 256,666 $ 128,181 $ 78,739 $ 175,484 $ 33,167 $ 1,097,486 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Home Equity Grade: Pass 1-5 $ — $ — $ — $ — $ — $ 69 $ 97,201 $ 97,270 Special Mention 6 — — — — — — — — Substandard 7 — — — — — — — — Doubtful 8 — — — — — — — — Loss 9 — — — — — — — — Loans not formally risk rated (1) — — — — — — — — Total $ — $ — $ — $ — $ — $ 69 $ 97,201 $ 97,270 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial Real Estate Grade: Pass 1-5 $ 380,858 $ 319,868 $ 59,555 $ 102,791 $ 99,316 $ 165,670 $ 29,904 $ 1,157,962 Special Mention 6 — — — — 6,183 5,714 — 11,897 Substandard 7 — — — — — — — — Doubtful 8 — — — — — — — — Loss 9 — — — — — — — — Loans not formally risk rated (1) — — — — — — — — Total $ 380,858 $ 319,868 $ 59,555 $ 102,791 $ 105,499 $ 171,384 $ 29,904 $ 1,169,859 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Multi-Family Grade: Pass 1-5 $ 7,583 $ 101,550 $ 22,358 $ 21,671 $ 42,776 $ 14,044 $ — $ 209,982 Special Mention 6 — — — — — — — — Substandard 7 — — — — — — — — Doubtful 8 — — — — — — — — Loss 9 — — — — — — — — Loans not formally risk rated (1) — — — — — — — — Total $ 7,583 $ 101,550 $ 22,358 $ 21,671 $ 42,776 $ 14,044 $ — $ 209,982 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Construction and Land Development Grade: Pass 1-5 $ 157,380 $ 305,558 $ 127,720 $ 20,929 $ 10,333 $ — $ 893 $ 622,813 Special Mention 6 — — — — — — — — Substandard 7 — — — — — — — — Doubtful 8 — — — — — 10 — 10 Loss 9 — — — — — — — — Loans not formally risk rated (1) — — — — — — — — Total $ 157,380 $ 305,558 $ 127,720 $ 20,929 $ 10,333 $ 10 $ 893 $ 622,823 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial and Industrial Grade: Pass 1-5 $ 58,678 $ 88,286 $ 45,960 $ 8,080 $ 3,038 $ 16,178 $ 262,506 $ 482,726 Special Mention 6 — — 250 — — 475 — 725 Substandard 7 — — — — 119 3,762 4,586 8,467 Doubtful 8 — — — — — — — — Loss 9 — — — — — — — — Loans not formally risk rated (1) — — — — — — — — Total $ 58,678 $ 88,286 $ 46,210 $ 8,080 $ 3,157 $ 20,415 $ 267,092 $ 491,918 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Term Loans Amortized Cost Basis by Origination Year (in thousands) Risk Rating 2023 2022 2021 2020 2019 Prior Revolving Loans Total Consumer Grade: Pass 1-5 $ — $ — $ — $ — $ — $ — $ — $ — Special Mention 6 — — — — — — — — Substandard 7 — — — — — — — — Doubtful 8 — — — — — — — — Loss 9 — — — — — — — — Loans not formally risk rated (1) 36,453 83,720 53,404 9,826 10,896 8,700 1,872 204,871 Total $ 36,453 $ 83,720 $ 53,404 $ 9,826 $ 10,896 $ 8,700 $ 1,872 $ 204,871 Current period gross charge-offs $ 42 $ 572 $ 585 $ 228 $ 72 $ 18 $ 1 $ 1,518 Total Loans Grade: Pass 1-5 $ 757,301 $ 1,087,709 $ 512,259 $ 281,652 $ 234,202 $ 370,547 $ 423,592 $ 3,667,262 Special Mention 6 — — 250 — 6,183 6,189 — 12,622 Substandard 7 — — — — 119 4,660 4,665 9,444 Doubtful 8 — — — — — 10 — 10 Loss 9 — — — — — — — — Loans not formally risk rated (1) 36,453 83,720 53,404 9,826 10,896 8,700 1,872 204,871 Total $ 793,754 $ 1,171,429 $ 565,913 $ 291,478 $ 251,400 $ 390,106 $ 430,129 $ 3,894,209 Current period gross charge-offs $ 42 $ 572 $ 585 $ 228 $ 72 $ 18 $ 1 $ 1,518 (1) Consumer loans are not formally risk rated and included $1.5 million of loans on non-accrual as of December 31, 2023. |
Schedule of the change in the ACL by major loan segment | For the Three Months Ended March 31, 2024 One-to-Four Construction Family Commercial and Land Commercial and Residential Home Equity Real Estate Multi-Family Development Industrial Consumer Unallocated Total (in thousands) Balance at December 31, 2023 $ 1,835 $ 117 $ 5,698 $ 378 $ 7,630 $ 10,878 $ 5,686 $ — $ 32,222 Provision (benefit) for credit losses 102 12 347 200 (1,896) 434 4,691 3,890 Charge-offs — — — — — (369) (1,573) — (1,942) Recoveries of loans previously charged-off — — — — — 36 100 — 136 Balance at March 31, 2024 $ 1,937 $ 129 $ 6,045 $ 578 $ 5,734 $ 10,979 $ 8,904 $ — $ 34,306 For the Three Months Ended March 31, 2023 One to Four Family Commercial Construction and Commercial and Residential Home Equity Real Estate Multi-Family Land Development Industrial Consumer Unallocated Total (in thousands) Balance at December 31, 2022 $ 3,485 $ 258 $ 5,785 $ 753 $ 3,846 $ 8,255 $ 1,403 $ 1,243 $ 25,028 Adjustment to allowance for adoption of ASU 2016-13 266 13 822 — (246) 932 615 (1,243) 1,159 Provision (benefit) for credit losses (373) 24 839 90 (53) 1,294 251 — 2,072 Charge offs — — — — — — (637) — (637) Recoveries of loans previously charged off — — 12 — — — 297 — 309 Balance at March 31, 2023 $ 3,378 $ 295 $ 7,458 $ 843 $ 3,547 $ 10,481 $ 1,929 $ — $ 27,931 |
Schedule of amortized cost of collateral-dependent loans | The following table presents the amortized cost of collateral-dependent loans of March 31, 2024 and December 31, 2023: As of March 31, 2024 December 31, 2023 (in thousands) One-to-four-family residential $ 970 $ 977 Construction and land development 10 10 Commercial and industrial 8,348 8,443 Total $ 9,328 $ 9,430 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Employee Benefits | |
Schedule of share information held by the ESOP | As of March 31, 2024 December 31, 2023 (Dollars in thousands) Allocated shares — — Shares committed to be released 42,121 — Unallocated shares 3,374,337 1,000,000 Total shares 3,416,458 1,000,000 Fair value of unallocated shares $ 46,093 $ 13,400 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Measurements | |
Summary of assets measured and reported at estimated fair value on a recurring basis | March 31, 2024 Level 1 Level 2 Level 3 Fair Value Assets: (in thousands) Available-for-sale debt securities: U.S. Treasury securities $ 77,422 $ — $ — $ 77,422 U.S. Government agencies — 3,999 — 3,999 Agency mortgage-backed securities — 10,925 — 10,925 Agency collateralized mortgage obligations — 2,260 — 2,260 Corporate bonds — 84,618 9,868 94,486 Municipal obligations — 18,077 — 18,077 Total available-for-sale debt securities $ 77,422 $ 119,879 $ 9,868 $ 207,169 Derivative assets $ — $ 29,291 $ — $ 29,291 Liabilities: Derivative liabilities $ — $ 29,298 $ — $ 29,298 December 31, 2023 Level 1 Level 2 Level 3 Fair Value Assets: (in thousands) Available-for-sale debt securities: U.S. Treasury securities $ 64,352 $ — $ — $ 64,352 Agency mortgage-backed securities — 11,430 — 11,430 Agency collateralized mortgage obligations — 2,418 — 2,418 Corporate bonds — 82,367 9,868 92,235 Municipal obligations — 19,030 — 19,030 Total available-for-sale debt securities $ 64,352 $ 115,245 $ 9,868 $ 189,465 Derivative assets $ — $ 27,769 $ — $ 27,769 Liabilities: Derivative liabilities $ — $ 27,786 $ — $ 27,786 |
Summary of assets measured at fair value on a non-recurring basis | The following table summarizes assets measured at fair value on a non-recurring basis: March 31, 2024 Level 1 Level 2 Level 3 Fair Value (in thousands) Collateral-dependent loans $ — $ — $ 4,330 $ 4,330 Mortgage servicing rights $ — $ — $ 2,581 $ 2,581 December 31, 2023 Level 1 Level 2 Level 3 Fair Value (in thousands) Collateral-dependent loans $ — $ — $ 4,432 $ 4,432 Mortgage servicing rights $ — $ — $ 2,640 $ 2,640 |
Summary of significant unobservable inputs used in the fair value measurements for Level 3 assets and liabilities measured at fair value on a nonrecurring basis | Significant Significant Valuation Observable Unobservable Technique Inputs Inputs Collateral-dependent loans Appraisal Value/ Comparison Sales Appraisals and/or sales of comparable properties Appraisals discounted 5 to 20% for sales commission and other holding costs Mortgage servicing rights Discounted Cash Flows Comparable sales Weighted average discount rate - 12% Constant prepayment rate – |
Summary of estimated fair values, related carrying amounts, and valuation level of the financial instruments | March 31, 2024 Carrying Fair Amount Value Level 1 Level 2 Level 3 (In thousands) Financial Assets: Cash and cash equivalents $ 315,031 $ 315,031 $ 315,031 $ — $ — Loans receivable, net 3,920,317 3,800,573 — — 3,800,573 Accrued interest receivable 17,843 17,843 17,843 — — Federal Home Loan Bank stock 4,357 4,357 — 4,357 — Federal Reserve Bank stock 10,319 10,319 — 10,319 — Non-public investments 13,619 13,619 — — 13,619 Bank-owned life insurance ("BOLI") 50,917 50,917 — 50,917 — Financial Liabilities: Deposits, other than time deposits $ 2,008,407 $ 2,008,407 $ 2,008,407 $ — $ — Time deposits 1,763,646 1,760,995 — 1,760,995 — FHLB Borrowings 60,837 60,627 — 60,627 — December 31, 2023 Carrying Fair Amount Value Level 1 Level 2 Level 3 (In thousands) Financial Assets: Cash and cash equivalents $ 272,591 $ 272,591 $ 272,591 $ — $ — Loans receivable, net 3,857,057 3,732,361 — — 3,732,361 Accrued interest receivable 17,284 17,284 17,284 — — Federal Home Loan Bank stock 14,558 14,558 — 14,558 — Federal Reserve Bank stock 10,323 10,323 — 10,323 — Non-public investments 13,852 13,852 — — 13,852 Bank-owned life insurance ("BOLI") 50,516 50,516 — 50,516 — Financial Liabilities: Deposits, other than time deposits $ 1,890,313 $ 1,890,313 $ 1,890,313 $ — $ — Time deposits 1,497,035 1,495,008 — 1,495,008 — FHLB Borrowings 283,338 283,172 — 283,172 — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies [Abstract] | |
Schedule of financial instruments whose contract amounts represents off-balance sheet credit risk | As of March 31, 2024 December 31, 2023 (In thousands) Commitments to originate loans $ 73,625 $ 79,191 Unadvanced funds on lines of credit 472,037 490,847 Unadvanced funds on construction loans 594,431 542,893 Letters of credit 7,340 7,471 $ 1,147,433 $ 1,120,402 |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Derivatives and Hedging Activities | |
Schedule of fair values of derivative instruments on the balance sheet | Derivative Derivative Assets (1) Liabilities (2) March 31, 2024 (in thousands) Derivatives not designated as hedging instruments: Interest rate products $ 29,291 $ 29,291 RPA credit contracts — 7 Total derivatives not designated as hedging instruments $ 29,291 $ 29,298 December 31, 2023 Derivatives not designated as hedging instruments: Interest rate products $ 27,769 $ 27,769 RPA credit contracts — 17 Total derivatives not designated as hedging instruments $ 27,769 $ 27,786 (1) Recorded in prepaid expenses and other assets on the consolidated balance sheets. (2) Recorded in accrued expenses and other liabilities on the consolidated balance sheets. |
Schedule of derivative financial instruments not designated as hedges to the consolidated statements of income | Location of Gain or (Loss) Recognized Three months ended March 31, in Income on Derivative 2024 2023 (in thousands) Derivatives Not Designated as Hedging Instruments: RPA credit contracts-fair value adjustments Other non-interest income $ 10 $ (3) |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Other Comprehensive Income (Loss) | |
Schedule of other comprehensive income (loss) and related tax effects | For the Three Months Ended March 31, 2024 March 31, 2023 (In thousands) Pre-Tax Tax (Expense) After-Tax Pre-Tax Tax (Expense) After-Tax Amount Benefit Amount Amount Benefit Amount Change in fair value of available-for-sale securities $ 295 $ (83) $ 212 $ 1,713 $ (430) $ 1,283 Less: Reclassification adjustment for realized gains in net income — — — — — — Net change in fair value of available-for-sale securities 295 (83) 212 1,713 (430) 1,283 Change in fair value of cash flow hedge — — — (271) 76 (195) Less: Net cash flow hedge gains (losses) reclassified into interest income or interest expense — — — — — — Net change in fair value of cash flow hedge, net of tax — — — (271) 76 (195) Total other comprehensive income (loss) $ 295 $ (83) $ 212 $ 1,442 $ (354) $ 1,088 |
Schedule of components of accumulated other comprehensive income | As of March 31, 2024 December 31, 2023 (In thousands) Net unrealized holding losses on securities available-for-sale, net of tax $ (10,716) $ (10,928) Unrecognized director pension plan benefits, net of tax (969) (969) Total accumulated other comprehensive loss $ (11,685) $ (11,897) |
Regulatory Capital Requiremen_2
Regulatory Capital Requirements (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Regulatory Capital Requirements | |
Schedule of actual capital amounts and ratios | To be well capitalized For minimum capital under prompt corrective Actual adequacy purposes action provisions Amount Ratio Amount Ratio Amount Ratio March 31, 2024 (in thousands) Total Capital $ 636,094 14.5% $ 350,080 8.0% $ 437,600 10.0% (to Risk-Weighted Assets) Tier 1 Capital 595,235 13.6% 262,560 6.0% 350,080 8.0% (to Risk-Weighted Assets) Common Equity Tier I Capital 595,235 13.6% 196,920 4.5% 284,440 6.5% (to Risk-Weighted Assets) Tier 1 Capital 595,235 13.5% 176,339 4.0% 220,423 5.0% (to Total Average Assets) |
Earnings Per Share ("EPS) (Tabl
Earnings Per Share ("EPS) (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share ("EPS) | |
Schedule of Earnings per share | For the Three Months Ended March 31, 2024 2023 (Dollars in thousands, except per share data) Net income applicable to common shares $ 8,701 $ N/A Average number of common shares outstanding 42,705,729 N/A Less: average unallocated ESOP shares (3,016,085) N/A Average number of common shares outstanding used to calculate basic EPS 39,689,644 N/A Common stock equivalents — N/A Average number of common shares outstanding used to calculate diluted EPS 39,689,644 N/A Earnings per common share: N/A Basic and diluted $ 0.22 $ N/A |
Conversion (Details)
Conversion (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 27, 2023 | Mar. 31, 2024 | Dec. 31, 2023 |
Conversion | |||
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.01 | $ 0.01 | |
Issuance of common shares donated to Needham Bank Charitable Foundation (in shares) | 1,708,229 | ||
Donation in cash to Needham Bank Charitable Foundation | $ 2 | ||
Public offering | |||
Conversion | |||
Number of shares sold pursuant to the plan | 40,997,500 | ||
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.01 | ||
Share price | $ 10 | ||
Gross offering proceeds | $ 410 |
Investment Securities - Amortiz
Investment Securities - Amortized cost to fair value (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Amortized cost and estimated fair values of securities classified as Available-for-Sale | ||
Amortized Cost | $ 221,678 | $ 204,269 |
Unrealized gain | 17 | 37 |
Unrealized loss | (14,526) | (14,841) |
Fair Value | 207,169 | 189,465 |
Amortized cost and estimated fair values of securities classified as Available-for-Sale (Prior to ASU adoption) | ||
Unrealized gain | 17 | 37 |
Unrealized loss | (14,526) | (14,841) |
Federal Home Loan Bank Advances [Member] | Asset Pledged as Collateral [Member] | ||
Amortized cost and estimated fair values of securities classified as Available-for-Sale | ||
Fair Value | 50,900 | 49,600 |
U.S. Treasury securities | ||
Amortized cost and estimated fair values of securities classified as Available-for-Sale | ||
Amortized Cost | 79,796 | 66,874 |
Unrealized gain | 1 | 27 |
Unrealized loss | (2,375) | (2,549) |
Fair Value | 77,422 | 64,352 |
Amortized cost and estimated fair values of securities classified as Available-for-Sale (Prior to ASU adoption) | ||
Unrealized gain | 1 | 27 |
Unrealized loss | (2,375) | (2,549) |
U.S. Government agencies | ||
Amortized cost and estimated fair values of securities classified as Available-for-Sale | ||
Amortized Cost | 3,998 | |
Unrealized gain | 1 | |
Fair Value | 3,999 | |
Amortized cost and estimated fair values of securities classified as Available-for-Sale (Prior to ASU adoption) | ||
Unrealized gain | 1 | |
Agency mortgage-backed securities | ||
Amortized cost and estimated fair values of securities classified as Available-for-Sale | ||
Amortized Cost | 12,792 | 13,154 |
Unrealized gain | 3 | 5 |
Unrealized loss | (1,870) | (1,729) |
Fair Value | 10,925 | 11,430 |
Amortized cost and estimated fair values of securities classified as Available-for-Sale (Prior to ASU adoption) | ||
Unrealized gain | 3 | 5 |
Unrealized loss | (1,870) | (1,729) |
Agency collateralized mortgage obligations | ||
Amortized cost and estimated fair values of securities classified as Available-for-Sale | ||
Amortized Cost | 2,849 | 2,987 |
Unrealized gain | 1 | |
Unrealized loss | (590) | (569) |
Fair Value | 2,260 | 2,418 |
Amortized cost and estimated fair values of securities classified as Available-for-Sale (Prior to ASU adoption) | ||
Unrealized gain | 1 | |
Unrealized loss | (590) | (569) |
Corporate bonds | ||
Amortized cost and estimated fair values of securities classified as Available-for-Sale | ||
Amortized Cost | 103,235 | 101,244 |
Unrealized gain | 11 | 5 |
Unrealized loss | (8,760) | (9,014) |
Fair Value | 94,486 | 92,235 |
Amortized cost and estimated fair values of securities classified as Available-for-Sale (Prior to ASU adoption) | ||
Unrealized gain | 11 | 5 |
Unrealized loss | (8,760) | (9,014) |
Municipal obligations | ||
Amortized cost and estimated fair values of securities classified as Available-for-Sale | ||
Amortized Cost | 19,008 | 20,010 |
Unrealized loss | (931) | (980) |
Fair Value | 18,077 | 19,030 |
Amortized cost and estimated fair values of securities classified as Available-for-Sale (Prior to ASU adoption) | ||
Unrealized loss | $ (931) | $ (980) |
Investment Securities - Narrati
Investment Securities - Narratives (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Investment Securities | |||
Accrued interest on available-for-sale securities | $ 1,500 | $ 1,200 | |
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] | Interest Receivable | Interest Receivable | |
Securities delinquent on contractual payments | $ 0 | ||
Available-for-sale securities, at fair value | 207,169 | $ 189,465 | |
Proceeds from sale of AFS securities | $ 0 | $ 0 | |
Percentage of aggregate depreciation | 8.50% | ||
Loans on Nonaccrual | $ 0 | ||
Accrued interest receivables written off | 0 | ||
Allowance for credit losses on securities | 0 | ||
Investment securities pledged | Borrowings with the Federal Reserve Bank | |||
Investment Securities | |||
Available-for-sale securities, at fair value | $ 50,900 | $ 49,600 |
Investment Securities - Maturit
Investment Securities - Maturities of Debt Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Amortized Cost | ||
Within one year | $ 71,869 | |
Over one year to five years | 98,678 | |
Over five years to ten years | 35,490 | |
Total Maturities | 206,037 | |
Amortized Cost | 221,678 | $ 204,269 |
Fair Value | ||
Within one year | 71,483 | |
Over one year to five years | 92,531 | |
Over five years to ten years | 29,970 | |
Total Maturities | 193,984 | |
Fair Value | 207,169 | 189,465 |
Agency mortgage-backed securities | ||
Amortized Cost | ||
Without single maturity securities | 12,792 | |
Amortized Cost | 12,792 | 13,154 |
Fair Value | ||
Without single maturity securities | 10,925 | |
Fair Value | 10,925 | 11,430 |
Agency collateralized mortgage obligations | ||
Amortized Cost | ||
Without single maturity securities | 2,849 | |
Amortized Cost | 2,849 | 2,987 |
Fair Value | ||
Without single maturity securities | 2,260 | |
Fair Value | $ 2,260 | $ 2,418 |
Investment Securities - Fair va
Investment Securities - Fair value and gross unrealized losses (Details) $ in Thousands | Mar. 31, 2024 USD ($) security | Dec. 31, 2023 USD ($) security |
Number of Securities | ||
Number of Securities | security | 87 | 84 |
Gross Unrealized Losses | ||
Less than 12 months | $ (1,341) | $ (1,411) |
12 months or more | (13,185) | (13,430) |
Total | (14,526) | (14,841) |
Fair Value | ||
Less than 12 months | 36,554 | 16,569 |
12 months or more | 149,401 | 155,633 |
Total | $ 185,955 | $ 172,202 |
U. S. Treasuries | ||
Number of Securities | ||
Number of Securities | security | 19 | 15 |
Gross Unrealized Losses | ||
Less than 12 months | $ (23) | $ (95) |
12 months or more | (2,352) | (2,454) |
Total | (2,375) | (2,549) |
Fair Value | ||
Less than 12 months | 27,816 | 7,884 |
12 months or more | 44,632 | 46,515 |
Total | $ 72,448 | $ 54,399 |
U.S. Government Agencies | ||
Number of Securities | ||
Number of Securities | security | 0 | |
Taxable municipals | ||
Number of Securities | ||
Number of Securities | security | 12 | 13 |
Gross Unrealized Losses | ||
Less than 12 months | $ (183) | $ (181) |
12 months or more | (748) | (799) |
Total | (931) | (980) |
Fair Value | ||
Less than 12 months | 1,817 | 1,819 |
12 months or more | 16,260 | 17,211 |
Total | $ 18,077 | $ 19,030 |
Mortgage backed securities | ||
Number of Securities | ||
Number of Securities | security | 19 | 18 |
Gross Unrealized Losses | ||
12 months or more | $ (1,870) | $ (1,729) |
Total | (1,870) | (1,729) |
Fair Value | ||
Less than 12 months | 55 | |
12 months or more | 10,639 | 11,124 |
Total | $ 10,694 | $ 11,124 |
Agency collateralized mortgage obligations | ||
Number of Securities | ||
Number of Securities | security | 5 | 5 |
Gross Unrealized Losses | ||
12 months or more | $ (590) | $ (569) |
Total | (590) | (569) |
Fair Value | ||
12 months or more | 2,260 | 2,418 |
Total | $ 2,260 | $ 2,418 |
Corporate bonds | ||
Number of Securities | ||
Number of Securities | security | 32 | 33 |
Gross Unrealized Losses | ||
Less than 12 months | $ (1,135) | $ (1,135) |
12 months or more | (7,625) | (7,879) |
Total | (8,760) | (9,014) |
Fair Value | ||
Less than 12 months | 6,866 | 6,866 |
12 months or more | 75,610 | 78,365 |
Total | $ 82,476 | $ 85,231 |
Loans Receivable and ACL (Detai
Loans Receivable and ACL (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Loans Receivable and ACL | ||||
Total loans | $ 3,959,814,000 | $ 3,894,209,000 | ||
Total loans (in percentage) | 100% | 100% | ||
Deferred fees, net | $ (5,191,000) | $ (4,930,000) | ||
Allowance for credit losses | (34,306,000) | $ (27,931,000) | (32,222,000) | $ (25,028,000) |
Net Loans | 3,920,317,000 | 3,857,057,000 | ||
Interest income recognized on these PPP loans | 64,000,000 | 43,760,000 | ||
Reversal of interest income | $ 159,000 | 0 | ||
Loans to value percentage, excluded from individually evaluated loans | 75% | |||
Allowances for credit losses individual impairment threshold amount | $ 500,000 | |||
Loans modified | 0 | 0 | ||
Cannabis industry | ||||
Loans Receivable and ACL | ||||
Total loans | 334,300,000 | 320,500,000 | ||
Net Loans | 81,600,000 | 102,100,000 | ||
Residential real estate | ||||
Loans Receivable and ACL | ||||
Total loans | $ 1,202,127,000 | $ 1,194,756,000 | ||
Total loans (in percentage) | 30.36% | 30.68% | ||
Residential real estate | One to four-family residential | ||||
Loans Receivable and ACL | ||||
Total loans | $ 1,102,919,000 | $ 1,097,486,000 | ||
Total loans (in percentage) | 27.85% | 28.18% | ||
Allowance for credit losses | $ (1,937,000) | (3,378,000) | $ (1,835,000) | (3,485,000) |
Residential real estate | Home equity | ||||
Loans Receivable and ACL | ||||
Total loans | $ 99,208,000 | $ 97,270,000 | ||
Total loans (in percentage) | 2.51% | 2.50% | ||
Allowance for credit losses | $ (129,000) | (295,000) | $ (117,000) | (258,000) |
Residential real estate | Multi-family residential | ||||
Loans Receivable and ACL | ||||
Total loans | 321,124,000 | 209,982,000 | ||
Residential real estate | Commercial real estate | ||||
Loans Receivable and ACL | ||||
Total loans | 1,195,390,000 | 1,169,859,000 | ||
Residential real estate | Construction & Land Development | ||||
Loans Receivable and ACL | ||||
Total loans | 535,391,000 | 622,823,000 | ||
Commercial | ||||
Loans Receivable and ACL | ||||
Total loans | $ 2,550,895,000 | $ 2,494,582,000 | ||
Total loans (in percentage) | 64.42% | 64.06% | ||
Commercial | Multi-family residential | ||||
Loans Receivable and ACL | ||||
Total loans | $ 209,982,000 | |||
Allowance for credit losses | $ (578,000) | (843,000) | (378,000) | (753,000) |
Commercial | Commercial real estate | ||||
Loans Receivable and ACL | ||||
Total loans | 1,169,859,000 | |||
Allowance for credit losses | (6,045,000) | (7,458,000) | (5,698,000) | (5,785,000) |
Commercial | Construction & Land Development | ||||
Loans Receivable and ACL | ||||
Total loans | $ 535,391,000 | $ 622,823,000 | ||
Total loans (in percentage) | 13.52% | 15.99% | ||
Allowance for credit losses | $ (5,734,000) | (3,547,000) | $ (7,630,000) | (3,846,000) |
Commercial | Commercial and industrial | ||||
Loans Receivable and ACL | ||||
Total loans | $ 498,990,000 | $ 491,918,000 | ||
Total loans (in percentage) | 12.60% | 12.63% | ||
Allowance for credit losses | $ (10,979,000) | (10,481,000) | $ (10,878,000) | (8,255,000) |
Consumer | ||||
Loans Receivable and ACL | ||||
Total loans | $ 206,792,000 | $ 204,871,000 | ||
Total loans (in percentage) | 5.22% | 5.26% | ||
Allowance for credit losses | $ (8,904,000) | $ (1,929,000) | $ (5,686,000) | $ (1,403,000) |
Commercial Real Estate Portfolio Segment [Member] | ||||
Loans Receivable and ACL | ||||
Total loans | $ 1,516,514,000 | $ 1,379,841,000 | ||
Total loans (in percentage) | 38.30% | 35.43% | ||
Commercial Real Estate Portfolio Segment [Member] | Commercial real estate | ||||
Loans Receivable and ACL | ||||
Total loans | $ 1,195,390,000 | $ 1,169,859,000 | ||
Total loans (in percentage) | 30.19% | 30.04% | ||
Commercial Real Estate Portfolio Segment [Member] | Multi-family residential | ||||
Loans Receivable and ACL | ||||
Total loans | $ 321,124,000 | $ 209,982,000 | ||
Total loans (in percentage) | 8.11% | 5.39% |
Loans Receivable and ACL - Cons
Loans Receivable and ACL - Consumer loan pools (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Loans Receivable and ACL | ||
Loans receivable | $ 3,954,623 | $ 3,889,279 |
Carrying value of loans pledged to secure advances | 60,837 | 283,338 |
Investment securities pledged | FHLB | ||
Loans Receivable and ACL | ||
Carrying value of loans pledged to secure advances | 1,240,000 | 1,330,000 |
Consumer | ||
Loans Receivable and ACL | ||
Loans purchased | 5,500 | 4,900 |
Gross Loan | 193,449 | 196,784 |
Premium (Discount) | (3,983) | (3,998) |
Loans receivable | 189,466 | 192,786 |
Consumer | Student loans | ||
Loans Receivable and ACL | ||
Gross Loan | 8,373 | 8,989 |
Premium (Discount) | 47 | 49 |
Loans receivable | 8,420 | 9,038 |
Consumer | Boat and RV loans | ||
Loans Receivable and ACL | ||
Gross Loan | 55,575 | 58,483 |
Premium (Discount) | 1,353 | 1,422 |
Loans receivable | 56,928 | 59,905 |
Consumer | Automobile loans | ||
Loans Receivable and ACL | ||
Gross Loan | 18,824 | 14,662 |
Loans receivable | 18,824 | 14,662 |
Consumer | Solar panel loans | ||
Loans Receivable and ACL | ||
Gross Loan | 60,092 | 61,430 |
Premium (Discount) | (5,360) | (5,443) |
Loans receivable | 54,732 | 55,987 |
Consumer | Home improvement loans | ||
Loans Receivable and ACL | ||
Gross Loan | 50,585 | 53,220 |
Premium (Discount) | (23) | (26) |
Loans receivable | $ 50,562 | $ 53,194 |
Loans Receivable and ACL - Agin
Loans Receivable and ACL - Aging of the Amortized Cost of Loans Receivables (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Loans Receivable and ACL | ||
Total loans, gross | $ 3,959,814 | $ 3,894,209 |
Nonaccrual | 10,806 | 10,798 |
Loans on Nonaccrual | 0 | |
Current Loans | ||
Loans Receivable and ACL | ||
Total loans, gross | 3,930,980 | 3,873,534 |
30-59 Days Past Due | ||
Loans Receivable and ACL | ||
Total loans, gross | 15,584 | 8,856 |
60-89 Days Past Due | ||
Loans Receivable and ACL | ||
Total loans, gross | 2,444 | 1,021 |
Residential real estate | ||
Loans Receivable and ACL | ||
Total loans, gross | 1,202,127 | 1,194,756 |
Residential real estate | One to four-family residential | ||
Loans Receivable and ACL | ||
Total loans, gross | 1,102,919 | 1,097,486 |
Nonaccrual | 4,281 | 4,100 |
Residential real estate | One to four-family residential | Current Loans | ||
Loans Receivable and ACL | ||
Total loans, gross | 1,096,745 | 1,091,483 |
Residential real estate | One to four-family residential | 30-59 Days Past Due | ||
Loans Receivable and ACL | ||
Total loans, gross | 1,618 | 1,903 |
Residential real estate | One to four-family residential | 60-89 Days Past Due | ||
Loans Receivable and ACL | ||
Total loans, gross | 275 | |
Residential real estate | Home equity | ||
Loans Receivable and ACL | ||
Total loans, gross | 99,208 | 97,270 |
Nonaccrual | 586 | 590 |
Residential real estate | Home equity | Current Loans | ||
Loans Receivable and ACL | ||
Total loans, gross | 96,335 | 96,327 |
Residential real estate | Home equity | 30-59 Days Past Due | ||
Loans Receivable and ACL | ||
Total loans, gross | 2,287 | 288 |
Residential real estate | Home equity | 60-89 Days Past Due | ||
Loans Receivable and ACL | ||
Total loans, gross | 65 | |
Residential real estate | Commercial real estate | ||
Loans Receivable and ACL | ||
Total loans, gross | 1,195,390 | 1,169,859 |
Nonaccrual | 422 | 422 |
Residential real estate | Commercial real estate | Current Loans | ||
Loans Receivable and ACL | ||
Total loans, gross | 1,190,344 | 1,166,702 |
Residential real estate | Commercial real estate | 30-59 Days Past Due | ||
Loans Receivable and ACL | ||
Total loans, gross | 4,144 | 2,735 |
Residential real estate | Commercial real estate | 60-89 Days Past Due | ||
Loans Receivable and ACL | ||
Total loans, gross | 480 | |
Residential real estate | Multi-family residential | ||
Loans Receivable and ACL | ||
Total loans, gross | 321,124 | 209,982 |
Residential real estate | Multi-family residential | Current Loans | ||
Loans Receivable and ACL | ||
Total loans, gross | 321,124 | 209,982 |
Residential real estate | Construction & land development | ||
Loans Receivable and ACL | ||
Total loans, gross | 535,391 | 622,823 |
Nonaccrual | 10 | 10 |
Residential real estate | Construction & land development | Current Loans | ||
Loans Receivable and ACL | ||
Total loans, gross | 535,381 | 622,813 |
Commercial | ||
Loans Receivable and ACL | ||
Total loans, gross | 2,550,895 | 2,494,582 |
Commercial | Commercial real estate | ||
Loans Receivable and ACL | ||
Total loans, gross | 1,169,859 | |
Commercial | Multi-family residential | ||
Loans Receivable and ACL | ||
Total loans, gross | 209,982 | |
Commercial | Construction & land development | ||
Loans Receivable and ACL | ||
Total loans, gross | 535,391 | 622,823 |
Commercial | Commercial and industrial | ||
Loans Receivable and ACL | ||
Total loans, gross | 498,990 | 491,918 |
Nonaccrual | 4,125 | 4,138 |
Commercial | Commercial and industrial | Current Loans | ||
Loans Receivable and ACL | ||
Total loans, gross | 489,522 | 487,777 |
Commercial | Commercial and industrial | 30-59 Days Past Due | ||
Loans Receivable and ACL | ||
Total loans, gross | 5,343 | 2 |
Commercial | Commercial and industrial | 60-89 Days Past Due | ||
Loans Receivable and ACL | ||
Total loans, gross | 1 | |
Consumer | ||
Loans Receivable and ACL | ||
Total loans, gross | 206,792 | 204,871 |
Nonaccrual | 1,382 | 1,538 |
Consumer | Current Loans | ||
Loans Receivable and ACL | ||
Total loans, gross | 201,529 | 198,450 |
Consumer | 30-59 Days Past Due | ||
Loans Receivable and ACL | ||
Total loans, gross | 2,192 | 3,928 |
Consumer | 60-89 Days Past Due | ||
Loans Receivable and ACL | ||
Total loans, gross | 1,689 | 955 |
Consumer | Commercial and industrial | ||
Loans Receivable and ACL | ||
Loans on Nonaccrual | $ 1,400 | $ 1,500 |
Loans Receivable and ACL - Nona
Loans Receivable and ACL - Nonaccrual Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Loans Receivable and ACL | ||
Nonaccrual Loans with No ACL | $ 7,044 | $ 7,036 |
Nonaccrual Loans with an ACL | 3,762 | 3,762 |
Total Nonaccrual Loans | 10,806 | 10,798 |
Incurred Loss Model - Nonaccrual Loans | 0 | |
Residential real estate | One to four-family residential | ||
Loans Receivable and ACL | ||
Nonaccrual Loans with No ACL | 4,281 | 4,100 |
Total Nonaccrual Loans | 4,281 | 4,100 |
Residential real estate | Home equity | ||
Loans Receivable and ACL | ||
Nonaccrual Loans with No ACL | 586 | 590 |
Total Nonaccrual Loans | 586 | 590 |
Residential real estate | Commercial | ||
Loans Receivable and ACL | ||
Nonaccrual Loans with No ACL | 422 | 422 |
Total Nonaccrual Loans | 422 | 422 |
Residential real estate | Construction & land development | ||
Loans Receivable and ACL | ||
Nonaccrual Loans with No ACL | 10 | 10 |
Total Nonaccrual Loans | 10 | 10 |
Commercial | Commercial and industrial | ||
Loans Receivable and ACL | ||
Nonaccrual Loans with No ACL | 363 | 376 |
Nonaccrual Loans with an ACL | 3,762 | 3,762 |
Total Nonaccrual Loans | 4,125 | 4,138 |
Consumer | ||
Loans Receivable and ACL | ||
Nonaccrual Loans with No ACL | 1,382 | 1,538 |
Total Nonaccrual Loans | 1,382 | 1,538 |
Consumer | Commercial and industrial | ||
Loans Receivable and ACL | ||
Incurred Loss Model - Nonaccrual Loans | $ 1,400 | $ 1,500 |
Loans Receivable and ACL - Loan
Loans Receivable and ACL - Loans Receivable by Internal Risk Grade by Year of Origination (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Term Loans Amortized Cost Basis by Origination Year | |||
2024 / 2023 | $ 78,594 | $ 793,754 | |
2023 / 2022 | 824,756 | 1,171,429 | |
2022 / 2021 | 1,156,091 | 565,913 | |
2021 / 2020 | 535,327 | 291,478 | |
2020 / 2019 | 290,269 | 251,400 | |
Prior | 627,036 | 390,106 | |
Revolving Loans | 447,741 | 430,129 | |
Total | 3,959,814 | 3,894,209 | |
Current period gross charge-offs | |||
2024 / 2023 | 42 | ||
2023 / 2022 | 19 | 572 | |
2022 / 2021 | 888 | 585 | |
2021 / 2020 | 770 | 228 | |
2020 / 2019 | 23 | 72 | |
Prior | 234 | 18 | |
Revolving Loans | 8 | 1 | |
Total | 1,942 | $ 637 | 1,518 |
Pass | |||
Term Loans Amortized Cost Basis by Origination Year | |||
2024 / 2023 | 72,575 | 757,301 | |
2023 / 2022 | 789,371 | 1,087,709 | |
2022 / 2021 | 1,074,343 | 512,259 | |
2021 / 2020 | 479,849 | 281,652 | |
2020 / 2019 | 280,071 | 234,202 | |
Prior | 590,365 | 370,547 | |
Revolving Loans | 441,149 | 423,592 | |
Total | 3,727,723 | 3,667,262 | |
Special Mention | |||
Term Loans Amortized Cost Basis by Origination Year | |||
2022 / 2021 | 2,965 | 250 | |
2021 / 2020 | 686 | ||
2020 / 2019 | 6,183 | ||
Prior | 12,320 | 6,189 | |
Total | 15,971 | 12,622 | |
Substandard | |||
Term Loans Amortized Cost Basis by Origination Year | |||
2020 / 2019 | 119 | ||
Prior | 4,653 | 4,660 | |
Revolving Loans | 4,665 | 4,665 | |
Total | 9,318 | 9,444 | |
Doubtful | |||
Term Loans Amortized Cost Basis by Origination Year | |||
Prior | 10 | 10 | |
Total | 10 | 10 | |
Not Formally Risk Related | |||
Term Loans Amortized Cost Basis by Origination Year | |||
2024 / 2023 | 6,019 | 36,453 | |
2023 / 2022 | 35,385 | 83,720 | |
2022 / 2021 | 78,783 | 53,404 | |
2021 / 2020 | 54,792 | 9,826 | |
2020 / 2019 | 10,198 | 10,896 | |
Prior | 19,688 | 8,700 | |
Revolving Loans | 1,927 | 1,872 | |
Total | 206,792 | 204,871 | |
Residential real estate | |||
Term Loans Amortized Cost Basis by Origination Year | |||
Total | 1,202,127 | 1,194,756 | |
Residential real estate | One to four-family residential | |||
Term Loans Amortized Cost Basis by Origination Year | |||
2024 / 2023 | 29,286 | 152,802 | |
2023 / 2022 | 151,762 | 272,447 | |
2022 / 2021 | 268,073 | 256,666 | |
2021 / 2020 | 254,490 | 128,181 | |
2020 / 2019 | 125,399 | 78,739 | |
Prior | 247,877 | 175,484 | |
Revolving Loans | 26,032 | 33,167 | |
Total | 1,102,919 | 1,097,486 | |
Residential real estate | One to four-family residential | Pass | |||
Term Loans Amortized Cost Basis by Origination Year | |||
2024 / 2023 | 29,286 | 152,802 | |
2023 / 2022 | 151,762 | 272,447 | |
2022 / 2021 | 268,073 | 256,666 | |
2021 / 2020 | 253,804 | 128,181 | |
2020 / 2019 | 125,399 | 78,739 | |
Prior | 246,986 | 174,586 | |
Revolving Loans | 25,953 | 33,088 | |
Total | 1,101,263 | 1,096,509 | |
Residential real estate | One to four-family residential | Special Mention | |||
Term Loans Amortized Cost Basis by Origination Year | |||
2021 / 2020 | 686 | ||
Total | 686 | ||
Residential real estate | One to four-family residential | Substandard | |||
Term Loans Amortized Cost Basis by Origination Year | |||
Prior | 891 | 898 | |
Revolving Loans | 79 | 79 | |
Total | 970 | 977 | |
Residential real estate | Home Equity | |||
Term Loans Amortized Cost Basis by Origination Year | |||
Prior | 67 | 69 | |
Revolving Loans | 99,141 | 97,201 | |
Total | 99,208 | 97,270 | |
Residential real estate | Home Equity | Pass | |||
Term Loans Amortized Cost Basis by Origination Year | |||
Prior | 67 | 69 | |
Revolving Loans | 99,141 | 97,201 | |
Total | 99,208 | 97,270 | |
Residential real estate | Commercial | |||
Term Loans Amortized Cost Basis by Origination Year | |||
2024 / 2023 | 8,600 | ||
2023 / 2022 | 391,464 | ||
2022 / 2021 | 328,546 | ||
2021 / 2020 | 59,452 | ||
2020 / 2019 | 102,632 | ||
Prior | 273,745 | ||
Revolving Loans | 30,951 | ||
Total | 1,195,390 | 1,169,859 | |
Residential real estate | Commercial | Pass | |||
Term Loans Amortized Cost Basis by Origination Year | |||
2024 / 2023 | 8,600 | ||
2023 / 2022 | 391,464 | ||
2022 / 2021 | 328,546 | ||
2021 / 2020 | 59,452 | ||
2020 / 2019 | 102,632 | ||
Prior | 261,893 | ||
Revolving Loans | 30,951 | ||
Total | 1,183,538 | ||
Residential real estate | Commercial | Special Mention | |||
Term Loans Amortized Cost Basis by Origination Year | |||
Prior | 11,852 | ||
Total | 11,852 | ||
Residential real estate | Multi-family residential | |||
Term Loans Amortized Cost Basis by Origination Year | |||
2023 / 2022 | 7,579 | ||
2022 / 2021 | 148,419 | ||
2021 / 2020 | 71,952 | ||
2020 / 2019 | 36,502 | ||
Prior | 56,672 | ||
Total | 321,124 | 209,982 | |
Residential real estate | Multi-family residential | Pass | |||
Term Loans Amortized Cost Basis by Origination Year | |||
2023 / 2022 | 7,579 | ||
2022 / 2021 | 148,419 | ||
2021 / 2020 | 71,952 | ||
2020 / 2019 | 36,502 | ||
Prior | 56,672 | ||
Total | 321,124 | ||
Residential real estate | Construction & Land Development | |||
Term Loans Amortized Cost Basis by Origination Year | |||
2024 / 2023 | 21,579 | ||
2023 / 2022 | 174,959 | ||
2022 / 2021 | 246,982 | ||
2021 / 2020 | 50,137 | ||
2020 / 2019 | 6,594 | ||
Prior | 8,324 | ||
Revolving Loans | 26,816 | ||
Total | 535,391 | 622,823 | |
Residential real estate | Construction & Land Development | Pass | |||
Term Loans Amortized Cost Basis by Origination Year | |||
2024 / 2023 | 21,579 | ||
2023 / 2022 | 174,959 | ||
2022 / 2021 | 244,017 | ||
2021 / 2020 | 50,137 | ||
2020 / 2019 | 6,594 | ||
Prior | 8,314 | ||
Revolving Loans | 26,816 | ||
Total | 532,416 | ||
Residential real estate | Construction & Land Development | Special Mention | |||
Term Loans Amortized Cost Basis by Origination Year | |||
2022 / 2021 | 2,965 | ||
Total | 2,965 | ||
Residential real estate | Construction & Land Development | Doubtful | |||
Term Loans Amortized Cost Basis by Origination Year | |||
Prior | 10 | ||
Total | 10 | ||
Commercial | |||
Term Loans Amortized Cost Basis by Origination Year | |||
Total | 2,550,895 | 2,494,582 | |
Commercial | Commercial | |||
Term Loans Amortized Cost Basis by Origination Year | |||
2024 / 2023 | 380,858 | ||
2023 / 2022 | 319,868 | ||
2022 / 2021 | 59,555 | ||
2021 / 2020 | 102,791 | ||
2020 / 2019 | 105,499 | ||
Prior | 171,384 | ||
Revolving Loans | 29,904 | ||
Total | 1,169,859 | ||
Commercial | Commercial | Pass | |||
Term Loans Amortized Cost Basis by Origination Year | |||
2024 / 2023 | 380,858 | ||
2023 / 2022 | 319,868 | ||
2022 / 2021 | 59,555 | ||
2021 / 2020 | 102,791 | ||
2020 / 2019 | 99,316 | ||
Prior | 165,670 | ||
Revolving Loans | 29,904 | ||
Total | 1,157,962 | ||
Commercial | Commercial | Special Mention | |||
Term Loans Amortized Cost Basis by Origination Year | |||
2020 / 2019 | 6,183 | ||
Prior | 5,714 | ||
Total | 11,897 | ||
Commercial | Multi-family residential | |||
Term Loans Amortized Cost Basis by Origination Year | |||
2024 / 2023 | 7,583 | ||
2023 / 2022 | 101,550 | ||
2022 / 2021 | 22,358 | ||
2021 / 2020 | 21,671 | ||
2020 / 2019 | 42,776 | ||
Prior | 14,044 | ||
Total | 209,982 | ||
Commercial | Multi-family residential | Pass | |||
Term Loans Amortized Cost Basis by Origination Year | |||
2024 / 2023 | 7,583 | ||
2023 / 2022 | 101,550 | ||
2022 / 2021 | 22,358 | ||
2021 / 2020 | 21,671 | ||
2020 / 2019 | 42,776 | ||
Prior | 14,044 | ||
Total | 209,982 | ||
Commercial | Construction & Land Development | |||
Term Loans Amortized Cost Basis by Origination Year | |||
2024 / 2023 | 157,380 | ||
2023 / 2022 | 305,558 | ||
2022 / 2021 | 127,720 | ||
2021 / 2020 | 20,929 | ||
2020 / 2019 | 10,333 | ||
Prior | 10 | ||
Revolving Loans | 893 | ||
Total | 535,391 | 622,823 | |
Commercial | Construction & Land Development | Pass | |||
Term Loans Amortized Cost Basis by Origination Year | |||
2024 / 2023 | 157,380 | ||
2023 / 2022 | 305,558 | ||
2022 / 2021 | 127,720 | ||
2021 / 2020 | 20,929 | ||
2020 / 2019 | 10,333 | ||
Revolving Loans | 893 | ||
Total | 622,813 | ||
Commercial | Construction & Land Development | Doubtful | |||
Term Loans Amortized Cost Basis by Origination Year | |||
Prior | 10 | ||
Total | 10 | ||
Commercial | Commercial and industrial | |||
Term Loans Amortized Cost Basis by Origination Year | |||
2024 / 2023 | 13,110 | 58,678 | |
2023 / 2022 | 63,607 | 88,286 | |
2022 / 2021 | 85,288 | 46,210 | |
2021 / 2020 | 44,504 | 8,080 | |
2020 / 2019 | 8,944 | 3,157 | |
Prior | 20,663 | 20,415 | |
Revolving Loans | 262,874 | 267,092 | |
Total | 498,990 | 491,918 | |
Current period gross charge-offs | |||
2021 / 2020 | 250 | ||
Prior | 119 | ||
Total | 369 | ||
Commercial | Commercial and industrial | Pass | |||
Term Loans Amortized Cost Basis by Origination Year | |||
2024 / 2023 | 13,110 | 58,678 | |
2023 / 2022 | 63,607 | 88,286 | |
2022 / 2021 | 85,288 | 45,960 | |
2021 / 2020 | 44,504 | 8,080 | |
2020 / 2019 | 8,944 | 3,038 | |
Prior | 16,433 | 16,178 | |
Revolving Loans | 258,288 | 262,506 | |
Total | 490,174 | 482,726 | |
Commercial | Commercial and industrial | Special Mention | |||
Term Loans Amortized Cost Basis by Origination Year | |||
2022 / 2021 | 250 | ||
Prior | 468 | 475 | |
Total | 468 | 725 | |
Commercial | Commercial and industrial | Substandard | |||
Term Loans Amortized Cost Basis by Origination Year | |||
2020 / 2019 | 119 | ||
Prior | 3,762 | 3,762 | |
Revolving Loans | 4,586 | 4,586 | |
Total | 8,348 | 8,467 | |
Consumer | |||
Term Loans Amortized Cost Basis by Origination Year | |||
2024 / 2023 | 6,019 | 36,453 | |
2023 / 2022 | 35,385 | 83,720 | |
2022 / 2021 | 78,783 | 53,404 | |
2021 / 2020 | 54,792 | 9,826 | |
2020 / 2019 | 10,198 | 10,896 | |
Prior | 19,688 | 8,700 | |
Revolving Loans | 1,927 | 1,872 | |
Total | 206,792 | 204,871 | |
Current period gross charge-offs | |||
2024 / 2023 | 42 | ||
2023 / 2022 | 19 | 572 | |
2022 / 2021 | 888 | 585 | |
2021 / 2020 | 520 | 228 | |
2020 / 2019 | 23 | 72 | |
Prior | 115 | 18 | |
Revolving Loans | 8 | 1 | |
Total | 1,573 | $ 637 | 1,518 |
Consumer | Not Formally Risk Related | |||
Term Loans Amortized Cost Basis by Origination Year | |||
2024 / 2023 | 6,019 | 36,453 | |
2023 / 2022 | 35,385 | 83,720 | |
2022 / 2021 | 78,783 | 53,404 | |
2021 / 2020 | 54,792 | 9,826 | |
2020 / 2019 | 10,198 | 10,896 | |
Prior | 19,688 | 8,700 | |
Revolving Loans | 1,927 | 1,872 | |
Total | $ 206,792 | $ 204,871 |
Loans Receivable and ACL - Chan
Loans Receivable and ACL - Change in the ACL (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Change in the ACL by major loan segment | |||
Beginning balance | $ 32,222 | $ 25,028 | $ 25,028 |
Allowance for credit losses | 34,306 | 27,931 | 32,222 |
Provision for credit losses | 3,890 | 2,072 | |
Charge offs | (1,942) | (637) | (1,518) |
Recoveries of loans previously charged off | 136 | 309 | |
Ending balance | 34,306 | 27,931 | 32,222 |
Adoption of ASU 2016-13 | ASU 2016-13 | |||
Change in the ACL by major loan segment | |||
Allowance for credit losses | 1,159 | ||
Ending balance | 1,159 | ||
Residential real estate | One to four-family residential | |||
Change in the ACL by major loan segment | |||
Beginning balance | 1,835 | 3,485 | 3,485 |
Allowance for credit losses | 1,937 | 3,378 | 1,835 |
Provision for credit losses | 102 | (373) | |
Ending balance | 1,937 | 3,378 | 1,835 |
Residential real estate | One to four-family residential | Adoption of ASU 2016-13 | ASU 2016-13 | |||
Change in the ACL by major loan segment | |||
Allowance for credit losses | 266 | ||
Ending balance | 266 | ||
Residential real estate | Home equity | |||
Change in the ACL by major loan segment | |||
Beginning balance | 117 | 258 | 258 |
Allowance for credit losses | 129 | 295 | 117 |
Provision for credit losses | 12 | 24 | |
Ending balance | 129 | 295 | 117 |
Residential real estate | Home equity | Adoption of ASU 2016-13 | ASU 2016-13 | |||
Change in the ACL by major loan segment | |||
Allowance for credit losses | 13 | ||
Ending balance | 13 | ||
Commercial | Commercial real estate | |||
Change in the ACL by major loan segment | |||
Beginning balance | 5,698 | 5,785 | 5,785 |
Allowance for credit losses | 6,045 | 7,458 | 5,698 |
Provision for credit losses | 347 | 839 | |
Recoveries of loans previously charged off | 12 | ||
Ending balance | 6,045 | 7,458 | 5,698 |
Commercial | Commercial real estate | Adoption of ASU 2016-13 | ASU 2016-13 | |||
Change in the ACL by major loan segment | |||
Allowance for credit losses | 822 | ||
Ending balance | 822 | ||
Commercial | Multi-family residential | |||
Change in the ACL by major loan segment | |||
Beginning balance | 378 | 753 | 753 |
Allowance for credit losses | 578 | 843 | 378 |
Provision for credit losses | 200 | 90 | |
Ending balance | 578 | 843 | 378 |
Commercial | Construction & Land Development | |||
Change in the ACL by major loan segment | |||
Beginning balance | 7,630 | 3,846 | 3,846 |
Allowance for credit losses | 5,734 | 3,547 | 7,630 |
Provision for credit losses | (1,896) | (53) | |
Ending balance | 5,734 | 3,547 | 7,630 |
Commercial | Construction & Land Development | Adoption of ASU 2016-13 | ASU 2016-13 | |||
Change in the ACL by major loan segment | |||
Allowance for credit losses | (246) | ||
Ending balance | (246) | ||
Commercial | Commercial and industrial | |||
Change in the ACL by major loan segment | |||
Beginning balance | 10,878 | 8,255 | 8,255 |
Allowance for credit losses | 10,979 | 10,481 | 10,878 |
Provision for credit losses | 434 | 1,294 | |
Charge offs | (369) | ||
Recoveries of loans previously charged off | 36 | ||
Ending balance | 10,979 | 10,481 | 10,878 |
Commercial | Commercial and industrial | Adoption of ASU 2016-13 | ASU 2016-13 | |||
Change in the ACL by major loan segment | |||
Allowance for credit losses | 932 | ||
Ending balance | 932 | ||
Consumer | |||
Change in the ACL by major loan segment | |||
Beginning balance | 5,686 | 1,403 | 1,403 |
Allowance for credit losses | 8,904 | 1,929 | 5,686 |
Provision for credit losses | 4,691 | 251 | |
Charge offs | (1,573) | (637) | (1,518) |
Recoveries of loans previously charged off | 100 | 297 | |
Ending balance | $ 8,904 | 1,929 | 5,686 |
Consumer | Adoption of ASU 2016-13 | ASU 2016-13 | |||
Change in the ACL by major loan segment | |||
Allowance for credit losses | 615 | ||
Ending balance | 615 | ||
Unallocated | |||
Change in the ACL by major loan segment | |||
Beginning balance | 1,243 | $ 1,243 | |
Allowance for credit losses | |||
Unallocated | Adoption of ASU 2016-13 | ASU 2016-13 | |||
Change in the ACL by major loan segment | |||
Allowance for credit losses | (1,243) | ||
Ending balance | $ (1,243) |
Loans Receivable and ACL - Coll
Loans Receivable and ACL - Collateral-Dependent Loans (Details) 10K - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Loans Receivable and ACL | ||
Amortized cost of collateral-dependent loans | $ 9,328 | $ 9,430 |
One to four-family residential | ||
Loans Receivable and ACL | ||
Amortized cost of collateral-dependent loans | 970 | 977 |
Construction & Land Development | ||
Loans Receivable and ACL | ||
Amortized cost of collateral-dependent loans | 10 | 10 |
Commercial and industrial | ||
Loans Receivable and ACL | ||
Amortized cost of collateral-dependent loans | $ 8,348 | $ 8,443 |
Employee Benefits - Employee Pe
Employee Benefits - Employee Pension Plan (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Employee Benefits | ||
Employee benefit contribution amount | $ 619,000 | $ 522,000 |
Employee Pension Plan | ||
Employee Benefits | ||
Net periodic pension cost | 390,000,000 | |
Director Pension Plan [Member] | ||
Employee Benefits | ||
Net periodic pension cost | 181,000,000 | 200,000,000 |
Liability, Defined Benefit Plan | $ 5,800,000 | $ 5,700,000 |
Employee Benefits - Director Pe
Employee Benefits - Director Pension Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Director Pension Plan | ||
Employee Benefits | ||
Net periodic pension cost | $ 181,000 | $ 200,000 |
Employee Benefits - Deferred Co
Employee Benefits - Deferred Compensation Plans (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Deferred Compensation Plans | ||
Deferred Compensation Plans | ||
Obligation under the plan | $ 2,500,000 | $ 2,400,000 |
Expenses under the plan | 100,000 | 89,000 |
Long-Term Incentive Plan | ||
Deferred Compensation Plans | ||
Obligation under the plan | 9,900,000 | 11,100,000 |
Expenses under the plan | $ 1,400,000 | $ 4,400,000 |
Incentive plan vesting period | 3 years | |
Minimum | ||
Deferred Compensation Plans | ||
Percentage of employee's then current base salary being credited to the participant's account annually | 5% | |
Maximum | ||
Deferred Compensation Plans | ||
Percentage of employee's then current base salary being credited to the participant's account annually | 20% |
Employee Benefits - Employee St
Employee Benefits - Employee Stock Ownership Plan (Details) - USD ($) | 3 Months Ended | ||
Dec. 27, 2023 | Mar. 31, 2024 | Dec. 31, 2023 | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Employee Stock Ownership Plan (ESOP), Compensation Expense | $ 588,000 | ||
Fair value of unallocated shares held by ESOP | $ 46,590,000 | $ 13,774,000 | |
Shares committed to be released | 42,121 | ||
Number of unallocated shares | 3,374,337 | 1,000,000 | |
Total shares | 3,416,458 | 1,000,000 | |
Fair value of unallocated shares | $ 46,093,000 | $ 13,400,000 | |
Employee Stock Ownership Plan | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Loan term | 20 years | ||
Interest rate | 8.50% | ||
Employee Stock Ownership Plan (ESOP), Shares Contributed to ESOP | 3,416,458 | ||
Employee Stock Ownership Plan (ESOP), Debt Structure, Indirect Loan, Amount | $ 47,200,000 | ||
Employee Stock Ownership Plan (ESOP), Compensation Expense | $ 588,000 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets Measured and Reported at Estimated Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Assets | ||
Available-for-sale securities, at fair value | $ 207,169 | $ 189,465 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Prepaid Expense and Other Assets | Prepaid Expense and Other Assets |
Liabilities: | ||
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accrued Liabilities and Other Liabilities | Accrued Liabilities and Other Liabilities |
U.S. Treasury securities | ||
Assets | ||
Available-for-sale securities, at fair value | $ 77,422 | $ 64,352 |
U.S. Government agencies | ||
Assets | ||
Available-for-sale securities, at fair value | 3,999 | |
Agency mortgage-backed securities | ||
Assets | ||
Available-for-sale securities, at fair value | 10,925 | 11,430 |
Agency collateralized mortgage obligations | ||
Assets | ||
Available-for-sale securities, at fair value | 2,260 | 2,418 |
Municipal obligations | ||
Assets | ||
Available-for-sale securities, at fair value | 18,077 | 19,030 |
Recurring | ||
Assets | ||
Available-for-sale securities, at fair value | 207,169 | 189,465 |
Derivative assets | 29,291 | 27,769 |
Liabilities: | ||
Derivative liabilities | 29,298 | 27,786 |
Recurring | U.S. Treasury securities | ||
Assets | ||
Available-for-sale securities, at fair value | 77,422 | 64,352 |
Recurring | U.S. Government agencies | ||
Assets | ||
Available-for-sale securities, at fair value | 3,999 | |
Recurring | Agency mortgage-backed securities | ||
Assets | ||
Available-for-sale securities, at fair value | 10,925 | 11,430 |
Recurring | Agency collateralized mortgage obligations | ||
Assets | ||
Available-for-sale securities, at fair value | 2,260 | 2,418 |
Recurring | Corporate bonds | ||
Assets | ||
Available-for-sale securities, at fair value | 94,486 | 92,235 |
Recurring | Municipal obligations | ||
Assets | ||
Available-for-sale securities, at fair value | 18,077 | 19,030 |
Recurring | Level 1 | ||
Assets | ||
Available-for-sale securities, at fair value | 77,422 | 64,352 |
Recurring | Level 1 | U.S. Treasury securities | ||
Assets | ||
Available-for-sale securities, at fair value | 77,422 | 64,352 |
Recurring | Level 2 | ||
Assets | ||
Available-for-sale securities, at fair value | 119,879 | 115,245 |
Derivative assets | 29,291 | 27,769 |
Liabilities: | ||
Derivative liabilities | 29,298 | 27,786 |
Recurring | Level 2 | U.S. Government agencies | ||
Assets | ||
Available-for-sale securities, at fair value | 3,999 | |
Recurring | Level 2 | Agency mortgage-backed securities | ||
Assets | ||
Available-for-sale securities, at fair value | 10,925 | 11,430 |
Recurring | Level 2 | Agency collateralized mortgage obligations | ||
Assets | ||
Available-for-sale securities, at fair value | 2,260 | 2,418 |
Recurring | Level 2 | Corporate bonds | ||
Assets | ||
Available-for-sale securities, at fair value | 84,618 | 82,367 |
Recurring | Level 2 | Municipal obligations | ||
Assets | ||
Available-for-sale securities, at fair value | 18,077 | 19,030 |
Recurring | Level 3 | ||
Assets | ||
Available-for-sale securities, at fair value | 9,868 | 9,868 |
Recurring | Level 3 | Corporate bonds | ||
Assets | ||
Available-for-sale securities, at fair value | $ 9,868 | $ 9,868 |
Fair Value Measurements - Narra
Fair Value Measurements - Narratives (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Fair Value Measurements | ||
Purchase in level 3 subordinated debentures | $ 0 | $ 0 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value on a Non-Recurring Basis (Details) - Non-recurring - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value Measurements | ||
Liabilities | $ 0 | $ 0 |
Collateral-dependent loans | ||
Fair Value Measurements | ||
Assets | 4,330 | 4,432 |
Collateral-dependent loans | Level 3 | ||
Fair Value Measurements | ||
Assets | 4,330 | 4,432 |
Mortgage servicing rights | ||
Fair Value Measurements | ||
Assets | 2,581 | 2,640 |
Mortgage servicing rights | Level 3 | ||
Fair Value Measurements | ||
Assets | $ 2,581 | $ 2,640 |
Fair Value Measurements - Signi
Fair Value Measurements - Significant Unobservable Inputs Used in the Fair Value Measurements (Details) - Appraisals and/or sales of comparable properties | Mar. 31, 2024 |
Appraisal Value/ Comparison Sales | Minimum | |
Fair Value Measurements | |
Collateral-dependent (previously known as impaired loans) | 5 |
Appraisal Value/ Comparison Sales | Maximum | |
Fair Value Measurements | |
Collateral-dependent (previously known as impaired loans) | 20 |
Discounted Cash Flows | Minimum | |
Fair Value Measurements | |
Mortgage servicing rights | 12 |
Discounted Cash Flows | Maximum | |
Fair Value Measurements | |
Mortgage servicing rights | 6.16 |
Fair Value Measurements - Estim
Fair Value Measurements - Estimated Fair Values, Related Carrying Amounts, and Valuation Level of the Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Level 1 | ||
Financial Assets | ||
Cash and cash equivalents | $ 315,031 | $ 272,591 |
Accrued interest receivable | 17,843 | 17,284 |
Financial Liabilities | ||
Noninterest-bearing demand deposits | 2,008,407 | 1,890,313 |
Level 2 | ||
Financial Assets | ||
Federal home Loan Bank stock | 4,357 | 14,558 |
Federal Reserve Bank stock | 10,319 | 10,323 |
Bank owned life insurance ("BOLI") | 50,917 | 50,516 |
Financial Liabilities | ||
Time deposits | 1,760,995 | 1,495,008 |
FHLB borrowings | 60,627 | 283,172 |
Level 3 | ||
Financial Assets | ||
Loans receivable, net | 3,800,573 | 3,732,361 |
Non-public investments | 13,619 | 13,852 |
Carrying Value | ||
Financial Assets | ||
Cash and cash equivalents | 315,031 | 272,591 |
Loans receivable, net | 3,920,317 | 3,857,057 |
Accrued interest receivable | 17,843 | 17,284 |
Federal home Loan Bank stock | 4,357 | 14,558 |
Federal Reserve Bank stock | 10,319 | 10,323 |
Non-public investments | 13,619 | 13,852 |
Bank owned life insurance ("BOLI") | 50,917 | 50,516 |
Financial Liabilities | ||
Noninterest-bearing demand deposits | 2,008,407 | 1,890,313 |
Time deposits | 1,763,646 | 1,497,035 |
FHLB borrowings | 60,837 | 283,338 |
Fair Value | ||
Financial Assets | ||
Cash and cash equivalents | 315,031 | 272,591 |
Loans receivable, net | 3,800,573 | 3,732,361 |
Accrued interest receivable | 17,843 | 17,284 |
Federal home Loan Bank stock | 4,357 | 14,558 |
Federal Reserve Bank stock | 10,319 | 10,323 |
Non-public investments | 13,619 | 13,852 |
Bank owned life insurance ("BOLI") | 50,917 | 50,516 |
Financial Liabilities | ||
Noninterest-bearing demand deposits | 2,008,407 | 1,890,313 |
Time deposits | 1,760,995 | 1,495,008 |
FHLB borrowings | $ 60,627 | $ 283,172 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Commitment and Contingencies | |||
Provision for credit losses - unfunded commitments | $ 539,000 | $ 0 | |
Unfunded loan commitment | |||
Commitment and Contingencies | |||
Provision for credit losses - unfunded commitments | 6,600,000 | $ 6,000,000 | |
Standby letters | |||
Commitment and Contingencies | |||
Loss contingency accrual | $ 7,300,000 | $ 7,500,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of contract amounts represents off-balance sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Commitment and Contingencies | ||
Amount of financial instruments represents off-balance sheet credit risk | $ 1,147,433 | $ 1,120,402 |
Commitments to originate loans | ||
Commitment and Contingencies | ||
Amount of financial instruments represents off-balance sheet credit risk | 73,625 | 79,191 |
Unadvanced funds on lines of credit | ||
Commitment and Contingencies | ||
Amount of financial instruments represents off-balance sheet credit risk | 472,037 | 490,847 |
Unadvanced funds on construction loans | ||
Commitment and Contingencies | ||
Amount of financial instruments represents off-balance sheet credit risk | 594,431 | 542,893 |
Letter of credit | ||
Commitment and Contingencies | ||
Amount of financial instruments represents off-balance sheet credit risk | $ 7,340 | $ 7,471 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities (Details) | 1 Months Ended | 3 Months Ended | ||
Sep. 30, 2021 USD ($) | Mar. 31, 2024 USD ($) item agreement | Dec. 31, 2023 USD ($) agreement | Mar. 31, 2023 USD ($) | |
Derivatives and Hedging Activities | ||||
Number of last of layer hedges previously entered | item | 2 | |||
Payments for termination of hedge | $ 2,150,000 | |||
Unamortized amount of this cost basis adjustment | $ 1,000,000 | $ 1,000,000 | ||
Amortization expense | $ 24,000 | $ 31,000 | ||
Number of agreements held | agreement | 1 | |||
Non-designated Hedges | ||||
Derivatives and Hedging Activities | ||||
Number of agreements held | agreement | 54 | 52 | ||
Aggregate notional amount | $ 340,900,000 | $ 338,600,000 | ||
Risk Participation Agreements | ||||
Derivatives and Hedging Activities | ||||
Number of agreements held | agreement | 17 | 16 | ||
Aggregate notional amount | $ 45,000,000 | $ 44,500,000 | ||
Risk Participation Agreements | Minimum | ||||
Derivatives and Hedging Activities | ||||
Agreement term | 5 years | |||
Risk Participation Agreements | Maximum | ||||
Derivatives and Hedging Activities | ||||
Agreement term | 10 years |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities - Derivative Instruments on the Balance Sheet (Details) - Non-designated Hedges - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Prepaid expenses and other assets | ||
Derivatives and Hedging Activities | ||
Asset Derivatives | $ 29,291 | $ 27,769 |
Prepaid expenses and other assets | Interest rate products | ||
Derivatives and Hedging Activities | ||
Asset Derivatives | 29,291 | 27,769 |
Accrued expenses and other liabilities | ||
Derivatives and Hedging Activities | ||
Liability Derivatives | 29,298 | 27,786 |
Accrued expenses and other liabilities | Interest rate products | ||
Derivatives and Hedging Activities | ||
Liability Derivatives | 29,291 | 27,769 |
Accrued expenses and other liabilities | RPA credit contracts | ||
Derivatives and Hedging Activities | ||
Liability Derivatives | $ 7 | $ 17 |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities - Consolidated Statements of Income (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Derivatives and Hedging Activities | |||
Swap contract fees, net of brokerage costs | $ 487,000 | $ 95,000 | |
Collateral deposit accounts require to maintain to mitigate counterparty default risk | 9,100,000 | $ 9,100,000 | |
Non-designated Hedges | RPA credit contracts | |||
Derivatives and Hedging Activities | |||
Derivative gain (loss) | $ 10,000 | $ (3,000) | |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Noninterest Expense | Noninterest Expense |
Other Comprehensive Income - Re
Other Comprehensive Income - Reconciliation of the Changes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Fair value of available-for-sale securities | ||
Change in fair value of available-for-sale securities, Pre-Tax Amount | $ 295 | $ 1,713 |
Change in fair value of available-for-sale securities, Tax (Expense) Benefit | (83) | (430) |
Change in fair value of available-for-sale securities, After-Tax Amount | 212 | 1,283 |
Net change in fair value of available-for-sale securities, Pre-Tax Amount | 295 | 1,713 |
Net change in fair value of available-for-sale securities, Tax (Expense) Benefit | (83) | (430) |
Net change in fair value of available-for-sale securities, After-Tax Amount | 212 | 1,283 |
Fair value of cash flow hedge | ||
Change in fair value of cash flow hedge, Pre-Tax Amount | (271) | |
Change in fair value of cash flow hedge, Tax (Expense) Benefit | 76 | |
Change in fair value of cash flow hedge, After-Tax Amount | (195) | |
Net change in fair value of cash flow hedge, net of tax, Pre-Tax Amount | (271) | |
Net change in fair value of cash flow hedge, net of tax, Tax (Expense) Benefit | 76 | |
Net change in fair value of cash flow hedge, net of tax, After-Tax Amount | (195) | |
Other comprehensive income (loss), Pre-Tax Amount | 295 | 1,442 |
Other comprehensive income (loss), Tax (Expense) Benefit | (83) | (354) |
Other comprehensive income (loss), After-Tax Amount | $ 212 | $ 1,088 |
Other Comprehensive Income - Co
Other Comprehensive Income - Components (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Other Comprehensive Income (Loss) | ||
Net unrealized holding losses on securities available-for-sale, net of tax | $ (10,716) | $ (10,928) |
Unrecognized director pension plan benefits, net of tax | (969) | (969) |
Total accumulated other comprehensive loss | $ (11,685) | $ (11,897) |
Regulatory Capital Requiremen_3
Regulatory Capital Requirements (Details) $ in Thousands | Mar. 31, 2024 USD ($) | Dec. 31, 2023 |
Total Capital (to Risk-Weighted Assets) | ||
Total Capital (to Risk-Weighted Assets), Actual Amount | $ 636,094 | |
Total Capital (to Risk-Weighted Assets), Actual Ratio | 0.145 | |
Total Capital (to Risk-Weighted Assets), For minimum capital adequacy purposes, Amount | $ 350,080 | |
Total Capital (to Risk-Weighted Assets), For minimum capital adequacy purposes, Ratio | 0.080 | |
Total Capital (to Risk-Weighted Assets), To be well capitalized under prompt corrective action provisions, Amount | $ 437,600 | |
Total Capital (to Risk-Weighted Assets), To be well capitalized under prompt corrective action provisions, Ratio | 0.100 | |
Tier I Capital (to Risk-Weighted Assets) | ||
Tier I Capital (to Risk-Weighted Assets), Actual Amount | $ 595,235 | |
Tier I Capital (to Risk-Weighted Assets), Actual Ratio | 0.136 | |
Tier I Capital (to Risk-Weighted Assets), For minimum capital adequacy purposes, Amount | $ 262,560 | |
Tier I Capital (to Risk-Weighted Assets), For minimum capital adequacy purposes, Ratio | 0.060 | |
Tier I Capital (to Risk-Weighted Assets), To be well capitalized under prompt corrective action provisions, Amount | $ 350,080 | |
Tier I Capital (to Risk-Weighted Assets), To be well capitalized under prompt corrective action provisions, Ratio | 0.080 | |
Common Equity Tier I Capital (to Risk-Weighted Assets) | ||
Common Equity Tier I Capital (to Risk-Weighted Assets), Actual Amount | $ 595,235 | |
Common Equity Tier I Capital (to Risk-Weighted Assets), Actual Ratio | 0.136 | |
Common Equity Tier I Capital (to Risk-Weighted Assets), For minimum capital adequacy purposes, Amount | $ 196,920 | |
Common Equity Tier I Capital (to Risk-Weighted Assets), For minimum capital adequacy purposes, Ratio | 0.045 | |
Common Equity Tier I Capital (to Risk-Weighted Assets), To be well capitalized under prompt corrective action provisions, Amount | $ 284,440 | |
Common Equity Tier I Capital (to Risk-Weighted Assets), To be well capitalized under prompt corrective action provisions, Ratio | 0.065 | |
Tier I Capital (to Total Average Assets) | ||
Tier I Capital (to Total Average Assets), Actual Amount | $ 595,235 | |
Tier I Capital (to Total Average Assets), Actual Ratio | 0.135 | 0.136 |
Tier I Capital (to Total Average Assets), For minimum capital adequacy purposes, Amount | $ 176,339 | |
Tier I Capital (to Total Average Assets), For minimum capital adequacy purposes, Ratio | 0.040 | |
Tier I Capital (to Total Average Assets), To be well capitalized under prompt corrective action provisions, Amount | $ 220,423 | |
Tier I Capital (to Total Average Assets), To be well capitalized under prompt corrective action provisions, Ratio | 0.050 |
Earnings Per Share ("EPS) - Nar
Earnings Per Share ("EPS) - Narratives (Details) - shares | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Earnings Per Share ("EPS) | |||
Dilutive securities | 0 | 0 | |
Common stock, shares outstanding | 42,705,729 | 42,705,729 |
Earnings Per Share ("EPS) - Com
Earnings Per Share ("EPS) - Computation of EPS (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Earnings Per Share ("EPS) | ||
Net Income (Loss) | $ 8,701 | $ 8,752 |
Average number of common shares outstanding | 42,705,729 | |
Less: average unallocated ESOP shares | (3,016,085) | |
Average number of common shares outstanding used to calculate basic EPS | 39,689,644 | |
Common stock equivalents | 0 | 0 |
Average number of common shares outstanding used to calculate diluted EPS | 39,689,644 | |
Earnings per common share: | ||
Basic (in dollars per share) | $ 0.22 | |
Diluted (in dollars per share) | $ 0.22 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 8,701 | $ 8,752 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |