FIRST BUSINESS FINANCIAL SERVICES, INC., 10-K filed on 2/26/2025
Annual Report
v3.25.0.1
Cover Page - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Feb. 24, 2025
Jun. 30, 2024
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2024    
Document Transition Report false    
Entity File Number 001-34095    
Entity Registrant Name FIRST BUSINESS FINANCIAL SERVICES, INC.    
Entity Incorporation, State or Country Code WI    
Entity Tax Identification Number 39-1576570    
Entity Address, Address Line One 401 Charmany Drive    
Entity Address, City or Town Madison    
Entity Address, State or Province WI    
Entity Address, Postal Zip Code 53719    
City Area Code 608    
Local Phone Number 238-8008    
Title of 12(b) Security Common Stock, $0.01 par value    
Trading Symbol FBIZ    
Security Exchange Name NASDAQ    
Entity Well-known Seasoned Issuer No    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
ICFR Auditor Attestation Flag true    
Entity Filer Category Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
Document Financial Statement Error Correction [Flag] false    
Entity Shell Company false    
Entity Common Stock, Shares Outstanding   8,301,126  
Entity Central Index Key 0001521951    
Current Fiscal Year End Date --12-31    
Document Fiscal Year Focus 2024    
Documents Incorporated by Reference

Part III – Portions of the Proxy Statement for the Annual Meeting of Shareholders to be held on April 25, 2025 are incorporated by reference into Part III hereof.

    
Document Fiscal Period Focus FY    
Entity Public Float     $ 306.8
Amendment Flag false    
Auditor Name Crowe LLP    
Auditor Location Oakbrook Terrace, Illinois    
Auditor Firm ID 173    
Auditor Opinion

Opinions on the Financial Statements and Internal Control over Financial Reporting

We have audited the accompanying consolidated balance sheets of First Business Financial Services, Inc. (the "Corporation") as of December 31, 2024 and 2023, the related consolidated statements of income, comprehensive income, changes in stockholders’ equity, and cash flows for each of the years in the three-year period ended December 31, 2024, and the related notes (collectively referred to as the "financial statements"). We also have audited the Corporation’s internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control – Integrated Framework: (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Corporation as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2024 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Corporation maintained, in all material respects, effective internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control – Integrated Framework: (2013) issued by COSO.

    
v3.25.0.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Assets    
Cash and due from banks $ 29,495 $ 32,348
Short-term investments 128,207 107,162
Cash and cash equivalents 157,702 139,510
Securities available-for-sale, at fair value 341,392 297,006
Securities held-to-maturity, at amortized cost 6,741 8,503
Loans held for sale 13,498 4,589
Loans and leases receivable, net of allowance for credit losses of $35,785 and $31,275, respectively 3,077,343 2,818,986
Premises and equipment, net 5,227 6,190
Repossessed assets 51 247
Right-of-use assets, net 5,702 6,559
Bank-owned life insurance 57,210 55,536
Federal Home Loan Bank stock, at cost 11,616 12,042
Goodwill and other intangible assets 11,912 12,023
Derivatives 65,762 55,597
Accrued interest receivable and other assets 99,059 91,058
Total assets 3,853,215 3,507,846
Liabilities and Stockholders’ Equity    
Deposits 3,107,140 2,796,779
Federal Home Loan Bank advances and other borrowings 320,049 330,916
Lease liabilities 7,926 8,954
Derivatives 57,068 51,949
Accrued interest payable and other liabilities 32,443 29,660
Total liabilities 3,524,626 3,218,258
Stockholders’ equity:    
Preferred stock, $0.01 par value, 2,500,000 shares authorized, 12,500 shares of 7% non-cumulative perpetual preferred stock, Series A, outstanding at December 31, 2024 and 2023, respectively 11,992 11,992
Common stock, $0.01 par value, 25,000,000 shares authorized, 9,433,637 and 9,418,463 shares issued, 8,293,928 and 8,314,778 shares outstanding at December 31, 2024 and 2023, respectively 95 95
Additional paid-in capital 93,545 90,616
Retained earnings 265,778 230,728
Accumulated other comprehensive loss (11,425) (13,717)
Treasury stock, 1,139,709 and 1,103,685 shares at December 31, 2024 and 2023, respectively, at cost (31,396) (30,126)
Total stockholders' equity 328,589 289,588
Total liabilities and stockholders’ equity $ 3,853,215 $ 3,507,846
v3.25.0.1
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Statement of Financial Position [Abstract]    
Allowance for loan losses $ 35,785 $ 31,275
Preferred Stock, Par or Stated Value Per Share $ 0.01 $ 0.01
Preferred Stock, Shares Authorized 2,500,000 2,500,000
Preferred stock, shares issued 12,500 12,500
Preferred Stock, Shares Outstanding 12,500 12,500
Preferred stock, dividend rate, percentage 7.00% 7.00%
Common Stock, Par or Stated Value Per Share $ 0.01 $ 0.01
Common Stock, Shares Authorized 25,000,000 25,000,000
Common Stock, Shares, Issued 9,433,637 9,418,463
Common Stock, Shares, Outstanding 8,293,928 8,314,778
Treasury Stock, Common, Shares 1,139,709 1,103,685
v3.25.0.1
Consolidated Statements of Income - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Interest income      
Loans and leases $ 216,899 $ 182,650 $ 115,368
Securities 11,912 8,203 4,472
Short-term investments 4,319 4,075 1,531
Total interest income 233,130 194,928 121,371
Interest expense      
Deposits 97,922 71,418 13,178
Federal Home Loan Bank advances and other borrowings 11,002 10,922 9,267
Junior subordinated notes 0 0 504
Total interest expense 108,924 82,340 22,949
Net interest income 124,206 112,588 98,422
Provision for credit losses 8,827 8,182 (3,868)
Net interest income after provision for credit losses 115,379 104,406 102,290
Non-interest income      
Private wealth management service fees 13,262 11,425 10,881
Gain on sale of Small Business Administration loans 1,942 2,055 2,537
Service charges on deposits 3,771 3,131 3,849
Loan fees 3,399 3,363 3,010
Increase in cash surrender value of bank-owned life insurance 1,649 1,494 2,227
Net loss on sale of securities (8) (45) 0
Swap fees 1,403 2,964 1,793
Other non-interest income 3,833 6,921 5,131
Total non-interest income 29,251 31,308 29,428
Non-interest expense      
Compensation 63,105 61,059 57,742
Occupancy 2,373 2,381 2,358
Professional fees 5,671 5,325 4,881
Data processing 4,892 3,826 3,197
Marketing 3,518 2,889 2,354
Equipment 1,314 1,340 1,091
Computer software 6,166 4,985 4,416
FDIC insurance 2,760 2,238 1,042
Other non-interest expense 3,681 4,532 2,393
Total non-interest expense 93,480 88,575 79,474
Income before income tax expense 51,150 47,139 52,244
Income tax expense 6,905 10,112 11,386
Net income 44,245 37,027 40,858
Preferred stock dividend 875 875 683
Net income available to common shareholders $ 43,370 $ 36,152 $ 40,175
Earnings per common share      
Basic $ 5.2 $ 4.33 $ 4.75
Diluted 5.2 4.33 4.75
Dividends declared per share $ 1 $ 0.91 $ 0.79
v3.25.0.1
Consolidated Statements of Comprehensive Income - USD ($)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Statement of Comprehensive Income [Abstract]      
Net income $ 44,245,000 $ 37,027,000 $ 40,858,000
Other comprehensive income (loss)      
Unrealized securities (losses) gains arising during the period (2,185,000) 5,606,000 (27,730,000)
Reclassification adjustment for net loss realized in net income 8,000 45,000 0
Amortization of net unrealized losses transferred from available-for-sale 2,000 4,000 14,000
Unrealized gains (losses) on interest rate swaps arising during the period 5,046,000 (3,514,000) 9,102,000
Income tax (expense) benefit (579,000) (548,000) 4,761,000
Total other comprehensive income (loss) 2,292,000 1,593,000 (13,853,000)
Comprehensive income $ 46,537,000 $ 38,620,000 $ 27,005,000
v3.25.0.1
Consolidated Statements of Changes in Stockholders' Equity - USD ($)
$ in Thousands
Total
Cumulative Effect, Period of Adoption, Adjustment
Cumulative Effect, Period of Adoption, Adjusted Balance
Common stock
Preferred Stock
Additional paid-in capital
Retained earnings
Retained earnings
Cumulative Effect, Period of Adoption, Adjustment
Retained earnings
Cumulative Effect, Period of Adoption, Adjusted Balance
Accumulated Other Comprehensive Loss
Treasury Stock, Common
Beginning balance at Dec. 31, 2021 $ 232,422     $ 93   $ 85,797 $ 170,020     $ (1,457) $ (22,031)
Common shares outstanding at Dec. 31, 2021       8,457,564              
Net income 40,858           40,858        
Other comprehensive income (loss) (13,853)                 (13,853)  
Issuance of preferred stock, net of issuance costs 11,992       $ 11,992            
Share-based compensation - restricted shares and employee stock purchase plan 2,584     $ 1   2,583          
Share-based compensation restricted shares and employee stock purchase plan, shares       75,564              
Issuance of common stock under the employee stock purchase plan 134         134          
Issuance of common stock under the employee stock purchase plan, shares       4,535              
Treasury stock re-issued           (1,002)         1,002
Preferred stock dividends (683)           (683)        
Cash dividends (6,688)           (6,688)        
Treasury stock purchased (6,126)                   (6,126)
Treasury stock purchased, shares       (175,578)              
Ending balance at Dec. 31, 2022 260,640 $ (1,353) $ 259,287 $ 94 11,992 87,512 203,507 $ (1,353) $ 202,154 (15,310) (27,155)
Common shares outstanding at Dec. 31, 2022       8,362,085              
Net income 37,027           37,027        
Other comprehensive income (loss) 1,593                 1,593  
Share-based compensation - restricted shares and employee stock purchase plan 2,977     $ 1   2,976          
Share-based compensation restricted shares and employee stock purchase plan, shares       43,057              
Issuance of common stock under the employee stock purchase plan 128         128          
Issuance of common stock under the employee stock purchase plan, shares       4,328              
Preferred stock dividends (875)           (875)        
Cash dividends (7,578)           (7,578)        
Treasury stock purchased (2,971)                   (2,971)
Treasury stock purchased, shares       (94,692)              
Ending balance at Dec. 31, 2023 $ 289,588     $ 95 11,992 90,616 230,728     (13,717) (30,126)
Common shares outstanding at Dec. 31, 2023 8,314,778     8,314,778              
Net income $ 44,245           44,245        
Other comprehensive income (loss) 2,292                 2,292  
Share-based compensation - restricted shares and employee stock purchase plan 2,785         2,785          
Share-based compensation restricted shares and employee stock purchase plan, shares       11,342              
Issuance of common stock under the employee stock purchase plan $ 144         144          
Issuance of common stock under the employee stock purchase plan, shares 3,832     3,832              
Preferred stock dividends $ (875)           (875)        
Cash dividends (8,320)           (8,320)        
Treasury stock purchased (1,270)                   (1,270)
Treasury stock purchased, shares       (36,024)              
Ending balance at Dec. 31, 2024 $ 328,589     $ 95 $ 11,992 $ 93,545 $ 265,778     $ (11,425) $ (31,396)
Common shares outstanding at Dec. 31, 2024 8,293,928     8,293,928              
v3.25.0.1
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares
 3 Months Ended 12 Months Ended
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Statement of Stockholders' Equity [Abstract]                      
Dividends declared per share $ 0.25 $ 0.25 $ 0.25 $ 0.25 $ 0.2275 $ 0.2275 $ 0.2275 $ 0.2275 $ 1 $ 0.91 $ 0.79
v3.25.0.1
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Operating activities      
Net Income (Loss) $ 44,245 $ 37,027 $ 40,858
Adjustments to reconcile net income to net cash provided by operating activities:      
Deferred income taxes, net (3,513) 2,120 (775)
Tax credit investments recovery 224 0 (351)
Provision for credit losses 8,827 8,182 (3,868)
Depreciation, amortization and accretion, net 3,738 3,636 4,066
Share-based compensation 2,785 2,977 2,584
Net loss on disposal of fixed assets 10 73 0
Net loss on sale of tax credit investments 177 0 0
Amortization of tax credit investments 5,992 4,053 1,035
Bank-owned life insurance policy income (1,649) (1,494) (2,227)
Origination of loans for sale (167,548) (149,669) (124,915)
Sale of loans originated for sale 160,581 149,767 128,391
Gain on sale of loans originated for sale (1,942) (2,055) (2,537)
Net loss (gain) on repossessed assets 168 13 (429)
Return on investment in limited partnerships 3,311 4,922 721
Excess tax benefit from share-based compensation 186 194 264
Net payments on operating lease liabilities (1,453) (1,425) (1,470)
Net increase (decrease) in accrued interest receivable and other assets 6,218 (21,497) (7,728)
Net (decrease) increase in accrued interest payable and other liabilities (2,866) 15,468 5,026
Net cash provided by operating activities 57,491 52,292 38,645
Investing activities      
Proceeds from maturities, redemptions, and paydowns of available-for-sale securities 91,902 22,114 40,835
Proceeds from maturities, redemptions, and paydowns of held-to-maturity securities 1,749 4,115 7,080
Proceeds from sale of available-for-sale securities 7,533 5,085 0
Purchases of available-for-sale securities (146,241) (106,967) (75,740)
Proceeds from sale of repossessed assets 18 25 71
Net increase in loans and leases (267,413) (408,618) (199,467)
Investments in limited partnerships (1,842) (1,413) (1,508)
Returns of investments in limited partnerships 704 7 17
Investment in tax credit investments (17,143) (24,160) (11,454)
Distribution from tax credit investments 174 101 474
Proceeds from sale of tax credit 1,879 0 0
Investment in Federal Home Loan Bank stock (24,945) (32,069) (45,660)
Proceeds from the sale of Federal Home Loan Bank stock 25,371 37,839 41,184
Purchases of leasehold improvements and equipment, net (223) (2,884) (3,223)
Proceeds from sale of leasehold improvements and equipment 30 0 0
Premium payment on bank owned life insurance policies (25) (24) (50)
Proceeds from bank owned life insurance claim 0 0 1,859
Proceeds from redemption of Trust II stock 0 0 315
Net cash used in investing activities (328,472) (506,849) (245,267)
Financing activities      
Net increase in deposits 310,361 628,573 210,283
Repayment of Federal Home Loan Bank advances (1,148,378) (1,698,730) (2,374,849)
Proceeds from Federal Home Loan Bank advances 1,132,228 1,563,851 2,422,429
Repayment of subordinated notes and debentures (15,000) 0 (9,090)
Repayment of junior subordinated debt 0 0 (10,076)
Proceeds from issuance of subordinated notes and debentures 20,000 15,000 20,000
Net increase (decrease) in long-term borrowed funds 283 (6,013) (5,132)
Cash dividends paid (8,320) (7,578) (6,688)
Preferred stock dividends paid (875) (875) (683)
Proceeds from issuance of common stock under ESPP 144 128 134
Proceeds from issuance of preferred stock 0 0 11,992
Purchase of treasury stock (1,270) (2,971) (6,126)
Net cash provided by financing activities 289,173 491,385 252,194
Net increase in cash and cash equivalents 18,192 36,828 45,572
Cash and cash equivalents at the beginning of the period 139,510 102,682 57,110
Cash and cash equivalents at the end of the period 157,702 139,510 102,682
Cash paid during the period for:      
Interest paid on deposits and borrowings 109,610 75,533 20,110
Net income taxes paid 158 7,456 8,038
Non-cash investing and financing activities:      
Transfer of repossessed assets to (from) loans 10 (190) (50)
Lease liability in exchange for right-of-use-asset $ 0 $ 0 $ 6,265
v3.25.0.1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Pay vs Performance Disclosure                      
Net Income (Loss) $ 14,415 $ 10,526 $ 10,456 $ 8,848 $ 9,770 $ 9,941 $ 8,337 $ 8,979 $ 44,245 $ 37,027 $ 40,858
v3.25.0.1
Insider Trading Arrangements
 3 Months Ended
Dec. 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
v3.25.0.1
Cybersecurity Risk Management, Strategy, and Governance
 12 Months Ended
Dec. 31, 2024
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]

Item 1C. Cybersecurity

Cybersecurity is an important component of our overall approach to Enterprise Risk Management (“ERM”). Our cybersecurity policies, standards, processes and practices are fully integrated in our ERM program which are based on recognized frameworks established by the National Institute of Standards and Technology, the International Organization for Standardization and other applicable industry standards. We seek to address cybersecurity risks through a comprehensive approach that is focused on preserving the confidentiality, security and availability of the information that we collect and store by identifying, preventing and mitigating cybersecurity threats and effectively responding to cybersecurity incidents when they occur.

Our cybersecurity program is focused on the following key areas:

Governance: The Board of Director’s (the “Board”) oversight of cybersecurity risk management is delegated to the Operational Risk Committee of the Board (the "ORC"),which regularly interacts with our ERM function, the Chief Information Officer ("CIO"), other members of management and relevant management committees. The ORC chair regularly reports material developments on cybersecurity to the Board.

Collaborative Approach: We have implemented a comprehensive approach to identifying, preventing and mitigating cybersecurity threats and incidents, while also implementing controls and procedures that provide for the prompt escalation of certain cybersecurity incidents so that decisions regarding the public disclosure and reporting of such incidents can be made by management in a timely manner.

Technical Safeguards: We deploy technical safeguards that are designed to continuously protect our information systems from cybersecurity threats, including firewalls, intrusion prevention and detection systems, anti-malware functionality and access controls. These safeguards are evaluated and improved through vulnerability assessments, penetration testing, and cybersecurity threat intelligence.

Incident Response and Recovery Planning: We have established and maintain a comprehensive incident response and recovery plan that fully addresses our response to a potential cybersecurity incident, and such plans are tested and evaluated on a regular basis.

Third-Party Risk Management: We maintain a comprehensive, risk-based approach to identifying and monitoring cybersecurity risks presented by third parties, including vendors, service providers and other external users of our systems, as well as the systems of third parties that could adversely impact our business in the event of a cybersecurity incident affecting those third-party systems. Our third-party risk management program includes robust upfront and ongoing risk assessments for all critical and high-risk vendors.

Education and Awareness: We provide regular, mandatory training for personnel regarding cybersecurity threats as a means to equip our personnel with effective tools to address cybersecurity threats, and to communicate our evolving information security policies, standards, processes and practices. The Board receives periodic education and on a regular basis is informed about industry trends and how the Bank is responding to evolving threats.

We engage an independent third party to conduct periodic testing and assessment of our policies, standards, processes, controls and practices that are designed to address cybersecurity threats and incidents. These efforts include audits, assessments, vulnerability and penetration testing and other exercises focused on evaluating the effectiveness of our cybersecurity measures. We also engage independent third parties to complete periodic testing and assessments of our cybersecurity measures. The results of such assessments are reported to the ORC and the Board and we adjust our policies and practices as necessary based on the information provided by these assessments.

The Board and the ORC oversee our ERM process, including regular presentations and reports. The Board and the ORC also would receive prompt and timely information regarding any cybersecurity incident that meets established reporting thresholds. The Board and the ORC coordinate the approach to cybersecurity management with the CRO and the CIO, as well as our CFO and CEO.

Our CRO and CIO have 30 and 24 years of experience, respectively. Their background is summarized in Item 1, Executive Officers of the Registrant.

To date, we believe we have not been materially affected, or are reasonably likely to be materially affected, by cybersecurity threats, including our business strategy, results of operations or financial condition. Please refer to Risk Factors in Item 1A for discussion of possible impacts from future cybersecurity events.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block]

Cybersecurity is an important component of our overall approach to Enterprise Risk Management (“ERM”). Our cybersecurity policies, standards, processes and practices are fully integrated in our ERM program which are based on recognized frameworks established by the National Institute of Standards and Technology, the International Organization for Standardization and other applicable industry standards. We seek to address cybersecurity risks through a comprehensive approach that is focused on preserving the confidentiality, security and availability of the information that we collect and store by identifying, preventing and mitigating cybersecurity threats and effectively responding to cybersecurity incidents when they occur.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block] The Board of Director’s (the “Board”) oversight of cybersecurity risk management is delegated to the Operational Risk Committee of the Board (the "ORC"),which regularly interacts with our ERM function, the Chief Information Officer ("CIO"), other members of management and relevant management committees. The ORC chair regularly reports material developments on cybersecurity to the Board.

The Board and the ORC oversee our ERM process, including regular presentations and reports. The Board and the ORC also would receive prompt and timely information regarding any cybersecurity incident that meets established reporting thresholds. The Board and the ORC coordinate the approach to cybersecurity management with the CRO and the CIO, as well as our CFO and CEO.

Our CRO and CIO have 30 and 24 years of experience, respectively. Their background is summarized in Item 1, Executive Officers of the Registrant.

To date, we believe we have not been materially affected, or are reasonably likely to be materially affected, by cybersecurity threats, including our business strategy, results of operations or financial condition. Please refer to Risk Factors in Item 1A for discussion of possible impacts from future cybersecurity events.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] The Board of Director’s (the “Board”) oversight of cybersecurity risk management is delegated to the Operational Risk Committee of the Board (the "ORC"),which regularly interacts with our ERM function, the Chief Information Officer ("CIO"), other members of management and relevant management committees. The ORC chair regularly reports material developments on cybersecurity to the Board.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] The Board and the ORC oversee our ERM process, including regular presentations and reports. The Board and the ORC also would receive prompt and timely information regarding any cybersecurity incident that meets established reporting thresholds.
Cybersecurity Risk Role of Management [Text Block] We seek to address cybersecurity risks through a comprehensive approach that is focused on preserving the confidentiality, security and availability of the information that we collect and store by identifying, preventing and mitigating cybersecurity threats and effectively responding to cybersecurity incidents when they occur.The ORC chair regularly reports material developments on cybersecurity to the Board.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] The Board and the ORC coordinate the approach to cybersecurity management with the CRO and the CIO, as well as our CFO and CEO.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] Our CRO and CIO have 30 and 24 years of experience, respectively.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] We provide regular, mandatory training for personnel regarding cybersecurity threats as a means to equip our personnel with effective tools to address cybersecurity threats, and to communicate our evolving information security policies, standards, processes and practices. The Board receives periodic education and on a regular basis is informed about industry trends and how the Bank is responding to evolving threats.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.0.1
Nature of Operations and Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Nature of Operations and Summary of Significant Accounting Policies

Note 1 — Nature of Operations and Summary of Significant Accounting Policies

Nature of Operations

The accounting and reporting practices of First Business Financial Services, Inc. (“FBFS” or the “Corporation”), through our wholly-owned subsidiary, First Business Bank (“FBB” or the “Bank”), have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). FBB operates as a commercial banking institution primarily in Wisconsin and the greater Kansas City metropolitan area. The Bank provides a full range of financial services to businesses, business owners, executives, professionals, and high net worth individuals. FBB also offers bank consulting services to community financial institutions. The Bank is subject to competition from other financial institutions and service providers and is also subject to state and federal regulations. As of December 31, 2024, FBB had the following wholly-owned subsidiaries: First Business Specialty Finance, LLC (“FBSF”), First Madison Investment Corp. (“FMIC”), ABKC Real Estate, LLC (“ABKC”), FBB Real Estate 2, LLC (“FBB RE 2”), Mitchell Street Apartments Investment, LLC (“Mitchell Street”), and FBB Tax Credit Investment, LLC (“FBB Tax Credit”).

Basis of Presentation. The Consolidated Financial Statements include the accounts of the Corporation and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.

Use of Estimates. Management of the Corporation is required to make estimates and assumptions which affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements as well as reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates. Material estimates that could significantly change in the near-term include the value of securities and interest rate swaps, level of allowance for credit losses, lease residuals, property under operating leases, goodwill, and income taxes.

Subsequent Events. Subsequent events have been evaluated through the date of issuance of the Consolidated Financial Statements. No significant subsequent events have occurred through this date requiring adjustment to the financial statements or disclosures.

Cash and Cash Equivalents. The Corporation considers federal funds sold, interest-bearing deposits, and short-term investments that have original maturities of three months or less to be cash equivalents.

Securities. The Corporation classifies its investment and mortgage-related securities as available-for-sale, held-to-maturity, and trading. Debt securities that the Corporation has the positive intent and ability to hold to maturity are classified as held-to-maturity and are stated at amortized cost. Debt securities bought expressly for the purpose of selling in the near term are classified as trading securities and are measured at fair value with unrealized gains and losses reported in earnings. Debt securities not classified as held-to-maturity or as trading are classified as available-for-sale. Available-for-sale securities are measured at fair value with unrealized gains and losses reported as a separate component of stockholders’ equity, net of tax. Realized gains and losses are included in the Consolidated Statements of Income as a component of non-interest income. Credit losses for securities are recorded as an allowance for credit losses through the provision for credit losses. The cost of securities sold is based on the specific identification method. The Corporation did not hold any trading securities at December 31, 2024 or 2023.

Discounts and premiums on securities are accreted and amortized into interest income using the effective yield method over the estimated life (based on maturity date, call date, or weighted average life) of the related security.

Allowance for Credit Loss (“ACL”) - Available For Sale (“AFS”) Debt Securities. For AFS debt securities in an unrealized loss position, the Corporation first assesses whether it intends to sell, or it is more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security's amortized cost basis is written down to fair value through income. For AFS debt securities that do not meet the aforementioned criteria, the Corporation evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and

an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any decline in fair value that has not been recorded through an allowance for credit losses is recognized in other comprehensive income, net of applicable taxes.

Changes in the ACL are recorded as a provision for (or recovery of) credit loss expense. Losses are charged against allowance when management believes that uncollectibility of an AFS debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met.

Accrued interest receivable on AFS debt securities totaled $1.3 million at December 31, 2024 and is excluded from the estimate of credit losses.

ACL - Held To Maturity (“HTM”) Debt Securities. Management measures expected credit losses on HTM debt securities on a collective basis by major security type. Accrued interest receivable on HTM debt securities totaled $31,000 at December 31, 2024 and is excluded from the estimate of credit losses. The HTM securities portfolio includes residential mortgage backed securities (“MBS”) commercial MBS, and municipal securities. All residential and commercial MBS are U.S. government issued or U.S. government sponsored and substantially all municipal bonds are rated A or above.

Loans Held for Sale. The guaranteed portions of SBA loans which are originated and intended for sale in the secondary market are classified as held for sale. These loans are carried at the lower of cost or fair value in the aggregate. Unrealized losses on such loans are recognized through a valuation allowance by a charge to other non-interest income. Gains and losses on the sale of loans are also included in other non-interest income. As assets specifically originated for sale, the origination of, disposition of, and gain/loss on these loans are classified as operating activities in the Consolidated Statements of Cash Flows. Fees received from the borrower and direct costs to originate the loans are deferred and recognized as part of the gain or loss on sale. There were $13.5 million and $4.6 million in loans held for sale outstanding at December 31, 2024 and 2023, respectively.

Loans and Leases. Loans and leases which management has the intent and ability to hold for the foreseeable future or until maturity are reported at their outstanding principal balance with adjustments for partial charge-offs, the allowance for credit losses, deferred fees or costs on originated loans and leases, and unamortized premiums or discounts on any purchased loans.

Occasionally, the Corporation modifies loans or leases to borrowers in financial distress by providing principal forgiveness, term extension, an other-than-significant payment delay or interest rate reduction. When principal forgiveness is provided, the amount of forgiveness is charged-off against the allowance for credit loss.

Interest on non-accrual loans and leases is accrued and credited to income on a daily basis based on the unpaid principal balance and is calculated using the effective interest method. Per policy, a loan or a lease is placed on non-accrual status when it becomes 90 days past due or it is doubtful that contractual principal and interest will be collected in accordance with the terms of the contract. A loan or lease is determined to be past due if the borrower fails to meet a contractual payment and will continue to be considered past due until all contractual payments are received. When a loan or lease is placed on non-accrual, the interest accrual is discontinued and previously accrued but uncollected interest is deducted from interest income. If collectability of the contractual principal and interest is in doubt, payments received are first applied to reduce the loan principal. If collectability of the contractual payments is not in doubt, payments may be applied to interest for interest amounts due on a cash basis. As soon as it is determined with certainty that the principal of a non-performing loan or lease is uncollectible, either through collections from the borrower or disposition of the underlying collateral, the portion of the carrying balance that exceeds the estimated measurement value of the loan or lease is charged off. Loans or leases are returned to accrual status when they are brought current in terms of both principal and accrued interest due, have performed in accordance with contractual terms for a reasonable period of time, and when the ultimate collectability of total contractual principal and interest is no longer doubtful.

Transfers of assets, including but not limited to the guaranteed portions of SBA loans and participation interests in other, non-SBA originated loans, that upon completion of the transfer satisfy the conditions to be reported as a sale, including legal isolation, are derecognized from the Consolidated Financial Statements. Transfers of assets that upon completion of the transfer do not meet the conditions of a sale are recorded on a gross basis with a secured borrowing identified to reflect the amount of the transferred interest.

Loan and lease origination fees as well as certain direct origination costs are deferred and amortized as an adjustment to loan yields over the stated term of the loan. Loans or leases that result from a refinance or restructuring, other than modified loans or leases to borrowers in financial distress, where terms are at least as favorable to the Corporation as the terms for comparable loans to other borrowers with similar collection risks and result in an essentially new loan, are accounted for as a new loan. Any unamortized net fees, costs, or penalties are recognized when the new loan or lease is originated. Unamortized net loan or lease fees or costs for loans and leases that result from a refinance or restructure with only minor modifications to the original loan or lease contract are carried forward as a part of the net investment in the new loan. For modified loans or leases to borrowers in financial distress, all fees received in connection with a modification of terms are applied as a reduction of the loan or lease and any related costs, including direct loan origination costs, are charged to expense as incurred.

ACL - Loans. The ACL is a valuation account that is deducted from the loans' amortized cost basis to present the net amounts expected to be collected on the loans. Loans are charged off against the allowance when management believes that the uncollectibility of a loan balance is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off.

Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as changes in external conditions, such as changes in unemployment rates, property values, or other relevant factors.

Accrued interest receivable on loans totaled $11.0 million at December 31, 2024 and is excluded from the estimate of credit losses.

ACL - Loans - Collectively Evaluated. The ACL is measured on a collective pool basis when similar risk characteristics exist. The Corporation has identified the following portfolio segments:

Commercial Real Estate: Commercial real estate portfolio segments utilize substantially similar processes and controls. Due to the collateral types, availability of data, and results of the Loss Driver Analysis (“LDA”), management utilizes a unique forecast model for each portfolio segment along with a separate analysis of subjective factors.

•
Construction - Loans secured by real estate used to finance land development or construction.
•
1-4 Family - Loans secured by 1-4 family residential property
•
Multi-family - Loans secured by multi-family residential property
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Owner Occupied - Loans secured by nonfarm, nonresidential owner-occupied property
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Non-owner Occupied - Loans secured by other nonfarm, nonresidential property

Commercial and Industrial Lending: Commercial and industrial lending is a portfolio segment where management uses a common forecast due to common risk management, similarity in collateral types, availability of data, and results of the LDA. Management has distinct processes, controls, and procedures which enable more precise development of subjective factors at the pool level.

•
Commercial - Loans to small- to medium-sized companies in our primary markets in Wisconsin, Kansas, and Missouri, predominantly through lines of credit and term loans to businesses.
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Asset Based Lending - Products include revolving lines of credit and term loans for strategic acquisitions, capital expenditures, working capital, bank debt refinancing, debt restructuring, and corporate turnaround strategies.
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Floorplan - Floor plan financing for independent auto dealerships nationwide.
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SBA - Loans originated in accordance with the guidelines of the Small Business Administration (“SBA”). As the Corporation prefers to sell the guaranteed portion, the on-balance sheet loans are primarily unguaranteed.
•
Equipment finance - Loans and leases secured by a broad range of equipment to commercial clients in a variety of industries.

Consumer and other: Consumer loans consisted of marketable security loans and other personal loans for executives and high net-worth individuals. The Corporation uses a unique forecast model and subjective factors for this portfolio segment due to the client type and data availability.

Measures of the ACL are as follows:

Portfolio Segment

 

Pool

 

Measurement Method

 

Loss Driver

Commercial real estate

 

 

 

 

 

 

Owner occupied

 

 

 

Discounted Cash Flow

 

National unemployment, National GDP

Non-owner occupied

 

 

 

Discounted Cash Flow

 

National unemployment, National GDP

Construction

 

 

 

Discounted Cash Flow

 

National unemployment, National GDP

Multi-family

 

 

 

Discounted Cash Flow

 

National unemployment, National GDP

1-4 Family

 

 

 

Discounted Cash Flow

 

National unemployment, National GDP

Commercial and industrial

 

 

 

 

 

 

 

 

Commercial

 

Discounted Cash Flow

 

National unemployment, National GDP

 

 

ABL

 

Discounted Cash Flow

 

National unemployment, National GDP

 

 

Floorplan

 

Discounted Cash Flow

 

National unemployment, National GDP

 

 

SBA

 

Weighted Average Remaining Maturity

 

N/A

 

 

Equipment Finance

 

Discounted Cash Flow

 

National unemployment, National GDP

Consumer and other

 

 

 

Discounted Cash Flow

 

National unemployment, National GDP

The Corporation utilized a discounted cash flow (DCF) or Weighted Average Remaining Maturity (WARM) method to estimate the quantitative portion of the allowance for credit losses for loans evaluated on a collective pooled basis. For each segment, a LDA was performed in order to identify loss drivers and create a regression model for use in forecasting cash flows. For all DCF-based pools, the LDA analyses utilized the Corporation’s and peer data from the Federal Financial Institutions Examination Council's (“FFIEC”) Call Report filings.

In creating the DCF model, the Corporation has established a one-year reasonable and supportable forecast period with a one-year straight line reversion to the long-term historical average. Due to the infrequency of losses, the Corporation elected to use peer data for a more statistically sound calculation.

Key inputs into the DCF model include loan-level detail, including the amortized cost basis of individual loans, payment structure, loss history, and forecasted loss drivers. The Corporation utilizes a third party to provide economic forecasts under various scenarios, which are assessed quarterly considering the scenarios in the context of the current economic environment and presumed risk of loss.

Expected credit losses are estimated over the contractual term of the loans, adjusted for prepayments when appropriate. The contractual term excludes extensions, renewals, and modifications unless the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Corporation.

Additional key assumptions in the DCF model include the probability of default (“PD”), loss given default (“LGD”), and prepayment/curtailment rates. The Corporation utilizes the model-driven PD and a LGD derived using a method referred to as Frye Jacobs. The Frye Jacobs method is a mathematical formula that traces the relationship between LGD and PD over time and projects the LGD based on the level of PD forecasted. In all cases, the Frye Jacobs method is utilized to calculate LGDs during the forecast period, reversion period and long-term historical average. Prepayment and curtailment rates were calculated through third party studies of the Corporation’s own data.

When the DCF method is used to determine the allowance for credit losses, management adjusts the effective interest rate used to discount expected cash flows to incorporate expected prepayments.

For the WARM-based SBA pool, Corporation-specific data was used to develop the model assumptions. The Corporation developed a reasonable and supportable estimate for the remaining maturity and estimated loss through analysis of historical data. The remaining maturity calculation excludes loans originated under the Paycheck Protection Program as such loans are inconsistent with the current portfolio composition. The quarterly loss rate data includes 2017 to current as the SBA lending policies and procedures were realigned in 2016 following the acquisition of Alterra Bank. Only the unguaranteed portion of the SBA loans are assessed via WARM. The risk of a failed guarantee claim is captured under ASC 450 contingency accounting.

Qualitative factors for DCF and WARM methodologies include the following:

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The Corporation’s lending policies and procedures, including changes in lending strategies, underwriting standards and practices for collections, write-offs, and recoveries;
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Actual and expected changes in international, national, regional, and local economic and business conditions and developments in which the Corporation operates that affect the collectability of financial assets;
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The experience, ability, and depth of the Corporation’s lending, investment, collection, and other relevant management and staff;
•
The volume of past due loans and leases, the volume of non-accrual and the volume and severity of adversely classified or graded assets;
•
The existence and effect of industry concentrations of credit;
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Independent indicators of collateral quality;
•
The quality of the Corporation’s credit review function and;
•
The effect of other external factors such as the regulatory, legal and technological environments, competition, and events such as natural disasters or pandemics

ACL - Loans - Individually Evaluated. Loans that do not share risk characteristics are evaluated on an individual basis and are excluded from the collective evaluation. The Corporation has determined that all loans which have been placed on non-performing status and other performing loans that have been identified due to non-conforming characteristics will be individually evaluated. Individual analysis will evaluate the required specific reserve for loans in scope. Specific reserves on non-performing loans are typically based on management’s best estimate of the fair value of collateral securing these loans, adjusted for selling costs as appropriate.

ACL - Off-Balance Sheet Credit Exposures. The Corporation estimates expected credit losses over the contractual period in which the Corporation is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Corporation. The allowance for credit losses on off-balance sheet credit exposure is adjusted as a provision for credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. Funding rates are based on a historical analysis of the Corporation’s portfolio, while estimates of credit losses are determined using the same loss rates as funded loans.

Premises and Equipment, net. The cost of capitalized leasehold improvements is amortized on the straight-line method over the lesser of the term of the respective lease or estimated economic life. Equipment is stated at cost less accumulated depreciation and amortization which is calculated by the straight-line method over the estimated useful lives of 3 to 10 years. Maintenance and repair costs are charged to expense as incurred. Improvements which extend the useful life are capitalized and depreciated over the remaining useful life of the assets.

Repossessed Assets. Property acquired by repossession, foreclosure, or by deed in lieu of foreclosure is recorded at the fair value of the underlying property, less costs to sell. This fair value becomes the new cost basis for the repossessed asset. Any write-down in the carrying value of a loan or lease at the time of acquisition is charged to the allowance for credit losses. Any subsequent write-downs to reflect current fair value, as well as gains and losses on disposition and revenues are recorded in non-interest expense. Any required or prudent costs incurred relating to the development and improvement of the property are capitalized while holding period costs are charged to other non-interest expense.

Leases. At contract inception, the Corporation determines whether the arrangement is or contains a lease and determines the lease classification. The lease term is determined based on the non-cancellable term of the lease adjusted to the extent optional renewal terms and termination rights are reasonably certain. Lease expense is recognized evenly over the lease term. Variable lease payments are recognized as period costs. The present value of remaining lease payments is recognized as a liability on the balance sheet with a corresponding right-of-use asset adjusted for prepaid or accrued lease payments. The Corporation uses the Federal Home Loan Bank fixed advance rate as of the lease inception date that most closely resembles the remaining term of the lease as the incremental borrowing rate, unless the interest rate implicit in the lease contract is readily determinable. The Corporation has elected to exclude

short-term leases as well as all non-lease items, such as common area maintenance, from being included in the lease liability on the Consolidated Balance Sheets.

Bank-Owned Life Insurance. Bank-owned life insurance (“BOLI”) is reported at the amount that would be realized if the life insurance policies were surrendered on the balance sheet date. BOLI policies owned by the Bank are purchased with the objective to fund certain future employee benefit costs with the death benefit proceeds. The cash surrender value of such policies is recorded in bank-owned life insurance on the Consolidated Balance Sheets and changes in the value are recorded in non-interest income. The total death benefit of all BOLI policies was $133.8 million and $133.7 million as of December 31, 2024 and 2023, respectively. There are no restrictions on the use of BOLI proceeds nor are there any contractual restrictions on the ability to surrender the policy. As of December 31, 2024 and 2023, there were no borrowings against the cash surrender value of the BOLI policies.

Federal Home Loan Bank Stock. The Bank is required to maintain Federal Home Loan Bank (“FHLB”) stock as members of the FHLB, and in amounts as required by the FHLB. This equity security is “restricted” in that it can only be sold back to the FHLB or another member institution at par. Therefore, it is less liquid than other marketable equity securities and the fair value is equal to cost. At December 31, 2024 and 2023, the Bank had FHLB stock of $11.6 million and $12.0 million, respectively. The Corporation periodically evaluates its holding in FHLB stock for impairment. Should the stock be impaired, it would be written down to its estimated fair value. There were no impairments recorded on FHLB stock during the years ended December 31, 2024 and 2023.

Goodwill and Other Intangible Assets. Goodwill and other intangible assets consist primarily of goodwill and loan servicing rights. Core deposit intangibles have estimated finite lives and are amortized on an accelerated basis to expense over a period of seven years. Loan servicing rights, when originated, are initially recorded at fair value and subsequently amortized in proportion to and over the period of estimated net servicing income. The Corporation reviews other intangible assets for impairment at least annually, or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable, in which case an impairment charge would be recorded.

Goodwill is not amortized but is subject to impairment tests on at least an annual basis, and more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount (including goodwill). An initial qualitative evaluation is made to assess the likelihood of impairment and determine whether further quantitative testing to calculate the fair value is necessary. When the qualitative evaluation indicates that impairment is more likely than not, quantitative testing is required whereby the fair value of each reporting unit is calculated and compared to the recorded book value. If the calculated fair value of the reporting unit exceeds its carrying value, goodwill is not considered impaired. If the carrying value of a reporting unit exceeds its calculated fair value, an impairment charge is recognized in earnings in an amount equal to the difference.

Other Investments. The Corporation owns certain equity investments in other corporate organizations which are not consolidated because the Corporation does not own more than a 50% interest or exercise control over the organization. Investments in corporations representing at least a 20% interest are generally accounted for using the equity method and investments in corporations representing less than 20% interest are generally accounted for at cost. Investments in limited partnerships representing from at least a 3% up to a 50% interest in the entity are generally accounted for using the equity method and investments in limited partnerships representing less than 3% are generally accounted for at cost. All of these investments are periodically evaluated for impairment. Should an investment be impaired, it would be written down to its estimated fair value. The equity investments are reported in other assets and the income and expense from such investments, if any, is reported in non-interest income and non-interest expense.

Derivative Instruments. The Corporation uses derivative instruments to protect against the risk of adverse price or interest rate movements on the value of certain assets, liabilities, future cash flows, and economic hedges for written client derivative contracts. Derivative instruments represent contracts between parties that usually require little or no initial net investment and result in one party delivering cash to the other party based on a notional amount and an underlying variable, as specified in the contract, and may be subject to master netting agreements.

Market risk is the risk of loss arising from an adverse change in interest rates, exchange rates, or equity prices. The Corporation’s primary market risk is interest rate risk. Instruments designed to manage interest rate risk include interest rate swaps, interest rate options, and interest rate caps and floors with indices that relate to the pricing of specific assets and liabilities. The nature and volume of the derivative instruments used to manage interest rate risk depend on the level and type of assets and liabilities on the balance

sheet and the risk management strategies for the current and anticipated rate environments. Counterparty risk with respect to derivative instruments occurs when a counterparty to a derivative contract with an unrealized gain fails to perform according to the terms of the agreement. Counterparty risk is managed by limiting the counterparties to highly rated dealers, requiring collateral postings when values are in deficit positions, applying uniform credit standards to all activities with credit risk, and monitoring the size and the maturity structure of the derivative portfolio.

All derivative instruments are to be carried at fair value on the Consolidated Balance Sheets. The accounting for the gain or loss due to changes in the fair value of a derivative instrument depends on whether the derivative instrument qualifies as a hedge. If the derivative instrument does not qualify as a hedge, the gains or losses are reported in earnings when they occur. However, if the derivative instrument qualifies as a hedge, the accounting varies based on the type of risk being hedged. The Corporation utilizes interest rate swaps offered directly to qualified commercial borrowers, which do not qualify for hedge accounting, and therefore, all changes in fair value and gains and losses on these instruments are reported in earnings as they occur. The effects of netting arrangements are disclosed within the Notes of the Consolidated Financial Statements. The Corporation offers interest rate swap products directly to qualified commercial borrowers. The Corporation economically hedges client derivative transactions by entering into offsetting interest rate swap contracts executed with a third party. Derivative transactions executed as part of this program are not considered hedging instruments and are marked-to-market through earnings each period. The derivative contracts have mirror-image terms, which results in the positions’ changes in fair value offsetting through earnings each period. The credit risk and risk of non-performance embedded in the fair value calculations is different between the dealer counterparties and the commercial borrowers which may result in a difference in the changes in the fair value of the mirror-image swaps. The Corporation incorporates credit valuation adjustments to appropriately reflect both its own non-performance risk and the counterparty’s risk in the fair value measurements. When evaluating the fair value of its derivative contracts for the effects of non-performance and credit risk, the Corporation considers the impact of netting and any applicable credit enhancements such as collateral postings, thresholds and guarantees.

The Corporation also enters into interest rate swaps to manage interest rate risk and reduce the cost of match-funding certain long-term fixed rate loans. These derivative contracts are designated as a cash flow hedge as the receipt of floating interest from the counterparty is used to manage interest rate risk associated with forecasted issuances of wholesale deposits and short-term FHLB advances. The change in fair value of the hedging instrument is recorded in accumulated other comprehensive income.

SBA Recourse Reserve. The Corporation establishes SBA recourse reserves on the guaranteed portions of sold SBA loans when it is probable that the SBA will deny or repair the guaranty on the sold portion of the loan and there is an estimated collateral shortfall. The recourse reserve is reported in accrued interest payable and other liabilities on the Consolidated Balance Sheets.

In the ordinary course of business, the Corporation sells the guaranteed portions of SBA loans to third parties. The Corporation has a continuing involvement in each of the transferred lending arrangements by way of relationship management, servicing the loans, as well as being subject to normal and customary requirements of the SBA loan program; however, there are no further obligations to the third-party participant required of the Corporation, other than standard representations and warranties related to sold amounts. In the event of a loss resulting from default and a determination by the SBA that there is a deficiency in the manner in which the loan was originated, funded, or serviced by the Corporation, the SBA may require the Corporation to repurchase the loan, deny its liability under the guaranty, reduce the amount of the guaranty, or, if it has already paid under the guaranty, seek recovery of the principal loss related to the deficiency from the Corporation. The Corporation must comply with applicable SBA regulations in order to maintain the guaranty. In addition, the Corporation retains the option to repurchase the sold guaranteed portion of an SBA loan if the loan defaults.

Income Taxes. Deferred income tax assets and liabilities are computed for temporary differences in timing between the financial statement and tax basis of assets and liabilities that result in taxable or deductible amounts in the future based on enacted tax law and rates applicable to periods in which the differences are expected to affect taxable income. The effect of a change in tax rates on deferred taxes is recognized in income in the period that includes the enactment date. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversals of deferred tax liabilities, appropriate tax planning strategies, and projections for future taxable income over the period which the deferred tax assets are deductible. When necessary, valuation allowances are established to reduce deferred tax assets to the realizable amount.

Income tax expense or benefit represents the tax payable or tax refundable for a period, adjusted by the applicable change in deferred tax assets and liabilities for that period. The Corporation also invests in certain development entities that generate federal and state historic and low income housing tax credits and solar renewable energy tax credits. The tax benefits associated with these investments are accounted for either under the flow-through method, equity method, or proportional amortization method and are recognized when the respective project is placed in service or over the investment term. The Corporation and its subsidiaries file a consolidated federal income tax return and separate state income tax returns. Tax sharing agreements allocate taxes to each legal entity for the settlement of intercompany taxes. The Corporation applies a more likely than not standard to each of its tax positions when determining the amount of tax expense or benefit to record in its financial statements. Unrecognized tax benefits are recorded in other liabilities. The Corporation recognizes accrued interest relating to unrecognized tax benefits in income tax expense and penalties in other non-interest expense.

Other Comprehensive Income or Loss. Comprehensive income or loss, shown as a separate financial statement, includes net income or loss, changes in unrealized gains and losses on available-for-sale securities, changes in deferred gains and losses on investment securities transferred from available-for-sale to held-to-maturity, if any, changes in unrealized gains and losses associated with cash flow hedging instruments, if any, and the amortization of deferred gains and losses associated with terminated cash flow hedges, if any. For the years ended December 31, 2024 and 2023, $8,000 and $45,000 of realized securities losses were recognized and reclassified out of accumulated other comprehensive loss, respectively.

Earnings Per Common Share. Earnings per common share (“EPS”) is computed using the two-class method. Basic EPS is computed by dividing net income allocated to common shares by the weighted average number of common shares outstanding for the period, excluding any participating securities. Participating securities include unvested restricted shares. Unvested restricted shares are considered participating securities because holders of these securities receive non-forfeitable dividends at the same rate as the holders of the Corporation’s common stock. Diluted EPS is computed by dividing net income allocated to common shares adjusted for reallocation of undistributed earnings of unvested restricted shares by the weighted average number of common shares determined for the basic EPS plus the dilutive effect of common stock equivalents using the treasury stock method based on the average market price for the period.

Operating Segments. While the chief decision-makers monitor the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a Corporation-wide basis. Operating segments are aggregated into one as operating results for all segments are similar. Accordingly, all of the financial service operations are considered by management to be aggregated in one reportable operating segment.

Share-Based Compensation. The Corporation may grant restricted stock awards, restricted stock units, and other stock based awards to plan participants, subject to forfeiture upon the occurrence of certain events until the dates specified in the participant’s award agreement. The Corporation accounts for forfeitures as they occur. While restricted stock is subject to forfeiture, restricted stock award participants may exercise full voting rights and will receive all dividends and other distributions paid with respect to the restricted shares. Dividend equivalent units with respect to restricted stock grants made after January 2023 will be deferred and paid at the time of vesting. Restricted stock units do not have voting rights and are provided dividend equivalents. The restricted stock granted under the 2019 Equity Incentive Plan (the “Plan”) is typically subject to a three or four year vesting period. Compensation expense for restricted stock is recognized over the requisite service period of three or four years for the entire award on a straight-line basis. Upon vesting of restricted stock, the benefit of tax deductions in excess of recognized compensation expense is reflected as an income tax benefit in the Consolidated Statements of Income.

The Corporation issues a combination of performance-based restricted stock units and restricted stock awards to plan participants. Vesting of the performance-based restricted stock units will be measured on Total Shareholder Return (“TSR”) and Return on Average Equity (“ROAE”) prior to 2023 or Return on Average Tangible Common Equity (“ROATCE”) for issuances after 2022, and will cliff-vest after a three-year measurement period based on the Corporation’s performance relative to a custom peer group. At the end of the performance period, the number of actual shares to be awarded varies between 0% and 200% of target amounts. Compensation expense is recognized for performance-based restricted stock units over the requisite service and performance period of generally three years for the entire expected award on a straight-line basis. The compensation expense for the awards expected to vest for the percentage of performance-based restricted stock units subject to the metric will be adjusted if there is a change in the expectation of metric. The compensation expense for the awards expected to vest for the percentage of performance-based restricted

stock units subject to the TSR metric are never adjusted, and are amortized utilizing the accounting fair value provided using a Monte Carlo pricing model.

The Corporation offers an Employee Stock Purchase Plan (“ESPP”) to all qualifying employees. The plan qualifies as an ESPP under section 423 of the Internal Revenue Code of 1986. Under the ESPP, eligible employees may enroll in a three month offer period that begins January, April, July, and October of each year. Employees may purchase a limited number of shares of the Corporation’s common stock at 90% of the fair market value on the last day of the offering period. The ESPP is treated as a compensatory plan for purposes of share-based compensation expense.

Recent Accounting Pronouncements. In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 820): Improvements to Reportable Segment Disclosures.” This update is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. This update was adopted for the year ended December 31, 2024. The Corporation is one operating segment and therefore, the adoption of ASU 2023-07 did not have a material impact to the consolidated financial statements.

In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” This update enhances the transparency and decision usefulness of income tax disclosures by providing better information regarding exposure to potential changes in jurisdictional tax legislation and related forecasting and cash flow opportunities. This update is effective for fiscal years beginning after December 15, 2024. The Corporation is assessing the impact of the standard.

Reclassifications. Certain amounts in the 2023 consolidated financial statements have been reclassified to conform to the 2024 presentation. These reclassifications were not material and did not impact previously reported net income or comprehensive income.
v3.25.0.1
Cash and Cash Equivalents
 12 Months Ended
Dec. 31, 2024
Cash and Cash Equivalents [Abstract]  
Cash and Cash Equivalents

Note 2 — Cash and Cash Equivalents

Cash and due from banks was approximately $29.5 million and $32.3 million at December 31, 2024 and 2023, respectively. As of March 26, 2020, the Federal Reserve Bank (“FRB”) reduced reserve requirement ratios to zero percent for all depository institutions. FRB balances were $127.8 million and $106.8 million at December 31, 2024 and 2023, respectively, and are included in short-term investments on the Consolidated Balance Sheets. Short-term investments, considered cash equivalents, were $128.2 million and $107.2 million at December 31, 2024 and 2023, respectively.

v3.25.0.1
Securities
 12 Months Ended
Dec. 31, 2024
Investments, Debt and Equity Securities [Abstract]  
Securities

Note 3 — Securities

The amortized cost and fair value of securities available-for-sale and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income were as follows:

 

 

 

As of December 31, 2024

 

 

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair Value

 

 

 

(In Thousands)

 

Available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasuries

 

$

4,989

 

 

$

—

 

 

$

(271

)

 

 

4,718

 

U.S. government agency securities -
   government-sponsored enterprises

 

 

3,500

 

 

 

—

 

 

 

(347

)

 

 

3,153

 

Municipal securities

 

 

39,997

 

 

 

—

 

 

 

(5,136

)

 

 

34,861

 

Residential mortgage-backed securities -
   government issued

 

 

125,571

 

 

 

470

 

 

 

(2,818

)

 

 

123,223

 

Residential mortgage-backed securities -
   government-sponsored enterprises

 

 

145,888

 

 

 

234

 

 

 

(11,357

)

 

 

134,765

 

Commercial mortgage-backed securities -
   government issued

 

 

2,665

 

 

 

—

 

 

 

(441

)

 

 

2,224

 

Commercial mortgage-backed securities -
   government-sponsored enterprises

 

 

43,033

 

 

 

24

 

 

 

(4,609

)

 

 

38,448

 

 

 

$

365,643

 

 

$

728

 

 

$

(24,979

)

 

$

341,392

 

 

 

 

 

As of December 31, 2023

 

 

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair Value

 

 

 

(In Thousands)

 

Available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasuries

 

$

14,158

 

 

$

7

 

 

$

(389

)

 

$

13,776

 

U.S. government agency securities -
   government-sponsored enterprises

 

 

27,986

 

 

 

35

 

 

 

(455

)

 

 

27,566

 

Municipal securities

 

 

40,407

 

 

 

—

 

 

 

(4,526

)

 

 

35,881

 

Residential mortgage-backed securities -
   government issued

 

 

69,441

 

 

 

1,000

 

 

 

(2,385

)

 

 

68,056

 

Residential mortgage-backed securities -
   government-sponsored enterprises

 

 

131,321

 

 

 

281

 

 

 

(10,769

)

 

 

120,833

 

Commercial mortgage-backed securities -
   government issued

 

 

2,995

 

 

 

—

 

 

 

(470

)

 

 

2,525

 

Commercial mortgage-backed securities -
   government-sponsored enterprises

 

 

32,774

 

 

 

65

 

 

 

(4,470

)

 

 

28,369

 

 

 

$

319,082

 

 

$

1,388

 

 

$

(23,464

)

 

$

297,006

 

 

The amortized cost and fair value of securities held-to-maturity and the corresponding amounts of gross unrecognized gains and losses were as follows:

 

 

 

As of December 31, 2024

 

 

 

Amortized
Cost

 

 

Gross
Unrecognized
Gains

 

 

Gross
Unrecognized
Losses

 

 

Fair Value

 

 

 

(In Thousands)

 

Held-to-maturity:

 

 

 

 

 

 

 

 

 

 

 

 

Municipal securities

 

$

3,137

 

 

$

—

 

 

$

(38

)

 

$

3,099

 

Residential mortgage-backed securities -
   government issued

 

 

836

 

 

 

—

 

 

 

(48

)

 

 

788

 

Residential mortgage-backed securities -
   government-sponsored enterprises

 

 

766

 

 

 

—

 

 

 

(42

)

 

 

724

 

Commercial mortgage-backed securities -
   government-sponsored enterprises

 

 

2,002

 

 

 

—

 

 

 

(78

)

 

 

1,924

 

 

 

$

6,741

 

 

$

—

 

 

$

(206

)

 

$

6,535

 

 

 

 

As of December 31, 2023

 

 

 

Amortized
Cost

 

 

Gross
Unrecognized
Gains

 

 

Gross
Unrecognized
Losses

 

 

Fair Value

 

 

 

(In Thousands)

 

Held-to-maturity:

 

 

 

 

 

 

 

 

 

 

 

 

Municipal securities

 

$

4,210

 

 

$

4

 

 

$

(41

)

 

$

4,173

 

Residential mortgage-backed securities -
   government issued

 

 

1,211

 

 

 

—

 

 

 

(76

)

 

 

1,135

 

Residential mortgage-backed securities -
   government-sponsored enterprises

 

 

1,078

 

 

 

—

 

 

 

(53

)

 

 

1,025

 

Commercial mortgage-backed securities -
   government-sponsored enterprises

 

 

2,004

 

 

 

—

 

 

 

(82

)

 

 

1,922

 

 

 

$

8,503

 

 

$

4

 

 

$

(252

)

 

$

8,255

 

 

U.S. Treasuries contain treasury bonds issued by the United States Treasury. U.S. government agency securities - government-sponsored enterprises represent securities issued by Federal National Mortgage Association (“FNMA”) and the SBA. Municipal securities include securities issued by various municipalities located primarily within Wisconsin and are primarily general obligation bonds that are tax-exempt in nature. Residential and commercial mortgage-backed securities - government issued represent securities guaranteed by the Government National Mortgage Association. Residential and commercial mortgage-backed securities -

government-sponsored enterprises include securities guaranteed by the Federal Home Loan Mortgage Corporation, FNMA, and the FHLB. The Corporation sold five available-for-sale securities during the year ended December 31, 2024 and 16 available-for-sale securities during the year ended December 31, 2023.

Total proceeds and gross realized gains and losses from sales of securities available-for-sale were as follows:

 

 

 

For the Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

 

 

(In Thousands)

 

Gross gains

 

$

—

 

 

$

68

 

 

$

—

 

Gross losses

 

 

(8

)

 

 

(113

)

 

 

—

 

Net losses on sale of available-for-sale securities

 

$

(8

)

 

$

(45

)

 

$

—

 

Proceeds from sale of available-for-sale securities

 

$

7,533

 

 

$

5,085

 

 

$

—

 

 

At December 31, 2024 and December 31, 2023, securities with a fair value of $36.9 million and $45.4 million, respectively, were pledged to secure various obligations, including interest rate swap contracts and municipal deposits.

The amortized cost and fair value of securities by contractual maturity at December 31, 2024 are shown below. Actual maturities may differ from contractual maturities because issuers have the right to call or prepay certain obligations with or without call or prepayment penalties.

 

 

 

Available-for-Sale

 

 

Held-to-Maturity

 

 

 

Amortized
Cost

 

 

Fair Value

 

 

Amortized
Cost

 

 

Fair Value

 

 

 

(In Thousands)

 

Due in one year or less

 

$

1,501

 

 

$

1,473

 

 

$

987

 

 

$

983

 

Due in one year through five years

 

 

18,145

 

 

 

16,902

 

 

 

2,150

 

 

 

2,116

 

Due in five through ten years

 

 

8,430

 

 

 

7,570

 

 

 

—

 

 

 

—

 

Due in over ten years

 

 

20,410

 

 

 

16,787

 

 

 

—

 

 

 

—

 

 

 

 

48,486

 

 

 

42,732

 

 

 

3,137

 

 

 

3,099

 

Residential mortgage-backed securities

 

 

271,459

 

 

 

257,988

 

 

 

1,602

 

 

 

1,512

 

Commercial mortgage-backed securities

 

 

45,698

 

 

 

40,672

 

 

 

2,002

 

 

 

1,924

 

 

 

$

365,643

 

 

$

341,392

 

 

$

6,741

 

 

$

6,535

 

 

The tables below show the Corporation’s gross unrealized losses and fair value of available-for-sale investments aggregated by investment category and length of time that individual investments were in a continuous loss position at December 31, 2024 and December 31, 2023. At December 31, 2024, the Corporation held 188 available-for-sale securities that were in an unrealized loss position, 155 of which have been in a continuous unrealized loss position for twelve months or greater.

The Corporation has not specifically identified available-for-sale securities in a loss position that it intends to sell in the near term and does not believe that it will be required to sell any such securities. The Corporation reviews its securities on a quarterly basis to assess declines in fair value for credit losses. Consideration is given to such factors as the credit rating of the borrower, market conditions such as current interest rates, any adverse conditions specific to the security, and delinquency status on contractual payments. For the years ended December 31, 2024 and 2023, management concluded that in all instances securities with fair value less than carrying value was due to market factors; thus, no credit loss provision was required.

A summary of unrealized loss information for securities available-for-sale, categorized by security type and length of time for which the security has been in a continuous unrealized loss position, follows:

 

 

 

As of December 31, 2024

 

 

 

Less than 12 Months

 

 

12 Months or Longer

 

 

Total

 

 

 

Fair Value

 

 

Unrealized
Losses

 

 

Fair Value

 

 

Unrealized
Losses

 

 

Fair Value

 

 

Unrealized
Losses

 

 

 

(In Thousands)

 

Available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasuries

 

$

—

 

 

$

—

 

 

$

4,718

 

 

$

271

 

 

$

4,718

 

 

$

271

 

U.S. government agency securities -
   government- sponsored enterprises

 

 

—

 

 

 

—

 

 

 

3,153

 

 

 

347

 

 

 

3,153

 

 

 

347

 

Municipal securities

 

 

—

 

 

 

—

 

 

 

34,861

 

 

 

5,136

 

 

 

34,861

 

 

 

5,136

 

Residential mortgage-backed securities -
   government issued

 

 

40,320

 

 

 

374

 

 

 

18,999

 

 

 

2,444

 

 

 

59,319

 

 

 

2,818

 

Residential mortgage-backed securities -
   government-sponsored enterprises

 

 

43,907

 

 

 

995

 

 

 

71,103

 

 

 

10,362

 

 

 

115,010

 

 

 

11,357

 

Commercial mortgage-backed securities -
   government issued

 

 

—

 

 

 

—

 

 

 

2,224

 

 

 

441

 

 

 

2,224

 

 

 

441

 

Commercial mortgage-backed securities -
   government-sponsored enterprises

 

 

10,717

 

 

 

425

 

 

 

26,751

 

 

 

4,184

 

 

 

37,468

 

 

 

4,609

 

 

 

$

94,944

 

 

$

1,794

 

 

$

161,809

 

 

$

23,185

 

 

$

256,753

 

 

$

24,979

 

 

 

 

As of December 31, 2023

 

 

 

Less than 12 Months

 

 

12 Months or Longer

 

 

Total

 

 

 

Fair Value

 

 

Unrealized
Losses

 

 

Fair Value

 

 

Unrealized
Losses

 

 

Fair Value

 

 

Unrealized
Losses

 

 

 

(In Thousands)

 

Available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasuries

 

$

—

 

 

$

—

 

 

$

4,595

 

 

$

389

 

 

$

4,595

 

 

$

389

 

U.S. government agency securities -
   government- sponsored enterprises

 

 

13,370

 

 

 

30

 

 

 

3,076

 

 

 

425

 

 

 

16,446

 

 

 

455

 

Municipal securities

 

 

—

 

 

 

—

 

 

 

35,881

 

 

 

4,526

 

 

 

35,881

 

 

 

4,526

 

Residential mortgage-backed securities -
   government issued

 

 

13,178

 

 

 

160

 

 

 

13,819

 

 

 

2,225

 

 

 

26,997

 

 

 

2,385

 

Residential mortgage-backed securities -
   government-sponsored enterprises

 

 

19,925

 

 

 

285

 

 

 

78,086

 

 

 

10,484

 

 

 

98,011

 

 

 

10,769

 

Commercial mortgage-backed securities -
   government issued

 

 

—

 

 

 

—

 

 

 

2,525

 

 

 

470

 

 

 

2,525

 

 

 

470

 

Commercial mortgage-backed securities -
   government-sponsored enterprises

 

 

893

 

 

 

20

 

 

 

26,465

 

 

 

4,450

 

 

 

27,358

 

 

 

4,470

 

 

 

$

47,366

 

 

$

495

 

 

$

164,447

 

 

$

22,969

 

 

$

211,813

 

 

$

23,464

 

 

The tables below show the Corporation’s gross unrealized losses and fair value of held-to-maturity investments, aggregated by investment category and length of time that individual investments were in a continuous loss position at December 31, 2024 and December 31, 2023. At December 31, 2024, the Corporation held 22 held-to-maturity securities that were in an unrealized loss position, 21 of which have been in a continuous loss position for twelve months or greater. Management assesses held-to-maturity securities for credit losses on a quarterly basis. The assessment includes review of credit ratings, identification of delinquency and evaluation of market factors. Based on this analysis, management concludes the decline in fair value is due to market factors, specifically changes in interest rates. Accordingly, no credit loss provision was recorded in the Consolidated Statements of Income for the years ended December 31, 2024, 2023, and 2022.

A summary of unrecognized loss information for securities held-to-maturity, categorized by security type and length of time for which the security has been in a continuous unrealized loss position, follows:

 

 

 

As of December 31, 2024

 

 

 

Less than 12 Months

 

 

12 Months or Longer

 

 

Total

 

 

 

Fair Value

 

 

Unrecognized
Losses

 

 

Fair Value

 

 

Unrecognized
Losses

 

 

Fair Value

 

 

Unrecognized
Losses

 

 

 

(In Thousands)

 

Held-to-maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Municipal securities

 

$

454

 

 

$

5

 

 

$

2,139

 

 

$

33

 

 

$

2,593

 

 

$

38

 

Residential mortgage-backed
   securities - government issued

 

 

—

 

 

 

—

 

 

 

788

 

 

 

48

 

 

 

788

 

 

 

48

 

Residential mortgage-backed
   securities - government-
   sponsored enterprises

 

 

—

 

 

 

—

 

 

 

724

 

 

 

42

 

 

 

724

 

 

 

42

 

Commercial mortgage-backed
   securities - government-
   sponsored enterprises

 

 

—

 

 

 

—

 

 

 

1,924

 

 

 

78

 

 

 

1,924

 

 

 

78

 

 

 

$

454

 

 

$

5

 

 

$

5,575

 

 

$

201

 

 

$

6,029

 

 

$

206

 

 

 

 

As of December 31, 2023

 

 

 

Less than 12 Months

 

 

12 Months or Longer

 

 

Total

 

 

 

Fair Value

 

 

Unrecognized
Losses

 

 

Fair Value

 

 

Unrecognized
Losses

 

 

Fair Value

 

 

Unrecognized
Losses

 

 

 

(In Thousands)

 

Held-to-maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Municipal securities

 

$

1,424

 

 

$

4

 

 

$

2,234

 

 

$

37

 

 

$

3,658

 

 

$

41

 

Residential mortgage-backed
   securities - government issued

 

 

—

 

 

 

—

 

 

 

1,135

 

 

 

76

 

 

 

1,135

 

 

 

76

 

Residential mortgage-backed
   securities - government-
   sponsored enterprises

 

 

—

 

 

 

—

 

 

 

1,025

 

 

 

53

 

 

 

1,025

 

 

 

53

 

Commercial mortgage-backed
   securities - government-
   sponsored enterprises

 

 

—

 

 

 

—

 

 

 

1,922

 

 

 

82

 

 

 

1,922

 

 

 

82

 

 

 

$

1,424

 

 

$

4

 

 

$

6,316

 

 

$

248

 

 

$

7,740

 

 

$

252

 
v3.25.0.1
Loans, Lease Receivables, and Allowance for Credit Losses
 12 Months Ended
Dec. 31, 2024
Receivables [Abstract]  
Loans, Lease Receivables, and Allowance for Credit Losses

Note 4 — Loans, Lease Receivables, and Allowance for Credit Losses

Loan and lease receivables consist of the following:

 

 

 

December 31,
2024

 

 

December 31,
2023

 

 

 

(In Thousands)

 

Commercial real estate:

 

 

 

 

 

 

Commercial real estate — owner occupied

 

$

273,397

 

 

$

256,479

 

Commercial real estate — non-owner occupied

 

 

845,298

 

 

 

773,494

 

Construction

 

 

221,086

 

 

 

193,080

 

Multi-family

 

 

530,853

 

 

 

450,529

 

1-4 family

 

 

46,496

 

 

 

26,289

 

Total commercial real estate

 

 

1,917,130

 

 

 

1,699,871

 

Commercial and industrial

 

 

1,151,720

 

 

 

1,105,835

 

Consumer and other

 

 

45,000

 

 

 

44,312

 

Total gross loans and leases receivable

 

 

3,113,850

 

 

 

2,850,018

 

Less:

 

 

 

 

 

 

Allowance for credit losses

 

 

35,785

 

 

 

31,275

 

Deferred loan fees and costs, net

 

 

722

 

 

 

(243

)

Loans and leases receivable, net

 

$

3,077,343

 

 

$

2,818,986

 

 

 

Loans transferred to third parties consist of the guaranteed portions of SBA loans which the Corporation sold in the secondary market and participation interests in other, non-SBA originated loans. The total principal amount of the guaranteed portions of SBA loans sold during the years ended December 31, 2024 and 2023, was $20.7 million and $23.6 million, respectively. Each of the transfers of these financial assets met the qualifications for sale accounting, and therefore all of the loans transferred during the years ended December 31, 2024 and 2023, have been derecognized in the Consolidated Financial Statements. The guaranteed portions of SBA loans were transferred at their fair value and the related gain was recognized upon the transfer as non-interest income in the Consolidated Financial Statements. The total outstanding balance of sold SBA loans serviced by the Corporation at December 31, 2024, and December 31, 2023, was $79.4 million and $84.2 million, respectively.

The total principal amount of transferred participation interests in other, non-SBA originated loans during the years ended December 31, 2024 and 2023, was $138.0 million and $120.0 million, respectively, all of which were treated as sales and derecognized under the applicable accounting guidance at the time of transfer. No gain or loss was recognized on participation interests in other, non-SBA originated loans as they were transferred at or near the date of loan origination and the payments received for servicing the portion of the loans participated represents adequate compensation. The total amount of loan participations purchased on the Corporation's Consolidated Balance Sheet as of December 31, 2024 was $5.3 million. There were no loan participation purchased on the Corporation's Consolidated Balance Sheet as of December 31, 2023. The total outstanding balance of these transferred loans serviced by the Corporation at December 31, 2024, and December 31, 2023, was $373.1 million and $279.5 million, respectively. As of December 31, 2024, and December 31, 2023, the total amount of the Corporation’s retained ownership of these transferred loans was $423.7 million and $367.4 million, respectively. As of December 31, 2024 and December 31, 2023, the non-SBA originated participation portfolio contained no non-accrual loans. The Corporation does not share in the participant’s portion of any potential charge-offs.

Certain of the Corporation’s executive officers, directors, and their related interests are loan clients of the Bank. These loans to related parties are summarized below:

 

 

 

December 31, 2024

 

 

December 31, 2023

 

 

 

(In Thousands)

 

Balance at beginning of year

 

$

263

 

 

$

224

 

New loans

 

 

381

 

 

 

349

 

Repayments

 

 

(399

)

 

 

(310

)

Balance at end of year

 

$

245

 

 

$

263

 

 

The Corporation’s net investment in direct financing leases consists of the following:

 

 

 

December 31,

 

 

December 31,

 

 

 

2024

 

 

2023

 

 

 

(In Thousands)

 

Minimum lease payments receivable

 

$

8,975

 

 

$

9,660

 

Estimated unguaranteed residual values in leased property

 

 

632

 

 

 

1,468

 

Unearned lease and residual income

 

 

(1,148

)

 

 

(1,362

)

Investment in commercial direct financing leases

 

$

8,459

 

 

$

9,766

 

 

The Corporation leases equipment under direct financing leases expiring in future years. Some of these leases provide for additional rents and generally allow the lessees to purchase the equipment for fair value at the end of the lease term.

Future aggregate maturities of minimum lease payments to be received are as follows:

 

(In Thousands)

 

 

 

Maturities during year ended December 31,

 

 

 

2025

 

$

3,108

 

2026

 

 

2,409

 

2027

 

 

1,898

 

2028

 

 

1,052

 

2029

 

469

 

Thereafter

 

39

 

 

 

$

8,975

 

 

The following table illustrates ending balances of the Corporation’s loan and lease portfolio, including non-accrual loans by class of receivable, and considering certain credit quality indicators:

 

December 31, 2024

 

Term Loans Amortized Cost Basis by Origination Year

 

 

 

 

 

 

 

(In Thousands)

 

2024

 

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

Prior

 

 

Revolving
Loans
Amortized
Cost Basis

 

 

Total

 

Commercial real estate —
   owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I

 

$

26,508

 

 

$

45,066

 

 

$

42,849

 

 

$

34,486

 

 

$

37,078

 

 

$

85,405

 

 

$

447

 

 

$

271,839

 

II

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

III

 

 

750

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

217

 

 

 

—

 

 

 

967

 

IV

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

591

 

 

 

—

 

 

 

591

 

Total

 

$

27,258

 

 

$

45,066

 

 

$

42,849

 

 

$

34,486

 

 

$

37,078

 

 

$

86,213

 

 

$

447

 

 

$

273,397

 

Commercial real estate —
   non-owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I

 

$

80,371

 

 

$

85,651

 

 

$

89,181

 

 

$

69,129

 

 

$

85,238

 

 

$

340,802

 

 

$

37,129

 

 

$

787,501

 

II

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,150

 

 

 

31,720

 

 

 

—

 

 

 

33,870

 

III

 

 

—

 

 

 

638

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

23,289

 

 

 

—

 

 

 

23,927

 

IV

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

80,371

 

 

$

86,289

 

 

$

89,181

 

 

$

69,129

 

 

$

87,388

 

 

$

395,811

 

 

$

37,129

 

 

$

845,298

 

Construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I

 

$

36,135

 

 

$

110,437

 

 

$

24,302

 

 

$

1,183

 

 

$

719

 

 

$

5,520

 

 

$

28,205

 

 

$

206,501

 

II

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

III

 

 

—

 

 

 

—

 

 

 

454

 

 

 

8,155

 

 

 

5,713

 

 

 

263

 

 

 

—

 

 

 

14,585

 

IV

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

36,135

 

 

$

110,437

 

 

$

24,756

 

 

$

9,338

 

 

$

6,432

 

 

$

5,783

 

 

$

28,205

 

 

$

221,086

 

Multi-family

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I

 

$

40,079

 

 

$

102,886

 

 

$

74,753

 

 

$

66,775

 

 

$

97,303

 

 

$

134,331

 

 

$

2,288

 

 

$

518,415

 

II

 

 

—

 

 

 

—

 

 

 

7,407

 

 

 

2,584

 

 

 

—

 

 

 

1,043

 

 

 

—

 

 

 

11,034

 

III

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,404

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,404

 

IV

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

40,079

 

 

$

102,886

 

 

$

82,160

 

 

$

70,763

 

 

$

97,303

 

 

$

135,374

 

 

$

2,288

 

 

$

530,853

 

1-4 family

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I

 

$

15,220

 

 

$

4,200

 

 

$

7,005

 

 

$

2,336

 

 

$

2,282

 

 

$

2,178

 

 

$

13,275

 

 

$

46,496

 

II

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

III

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

IV

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

15,220

 

 

$

4,200

 

 

$

7,005

 

 

$

2,336

 

 

$

2,282

 

 

$

2,178

 

 

$

13,275

 

 

$

46,496

 

Commercial and industrial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I

 

$

259,976

 

 

$

216,621

 

 

$

93,119

 

 

$

52,066

 

 

$

23,960

 

 

$

27,370

 

 

$

405,499

 

 

$

1,078,611

 

II

 

 

316

 

 

 

2,700

 

 

 

2,657

 

 

 

—

 

 

 

470

 

 

 

8

 

 

 

7,676

 

 

 

13,827

 

III

 

 

4,205

 

 

 

5,418

 

 

 

3,909

 

 

 

1,379

 

 

 

2,446

 

 

 

3,957

 

 

 

10,192

 

 

 

31,506

 

IV

 

 

536

 

 

 

4,060

 

 

 

6,245

 

 

 

1,038

 

 

 

274

 

 

 

2,519

 

 

 

13,104

 

 

 

27,776

 

Total

 

$

265,033

 

 

$

228,799

 

 

$

105,930

 

 

$

54,483

 

 

$

27,150

 

 

$

33,854

 

 

$

436,471

 

 

$

1,151,720

 

Consumer and other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I

 

$

6,955

 

 

$

5,244

 

 

$

7,416

 

 

$

2,764

 

 

$

10,994

 

 

$

3,885

 

 

$

7,742

 

 

$

45,000

 

II

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

III

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

IV

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

6,955

 

 

$

5,244

 

 

$

7,416

 

 

$

2,764

 

 

$

10,994

 

 

$

3,885

 

 

$

7,742

 

 

$

45,000

 

Total Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I

 

$

465,244

 

 

$

570,105

 

 

$

338,625

 

 

$

228,739

 

 

$

257,574

 

 

$

599,491

 

 

$

494,585

 

 

$

2,954,363

 

II

 

 

316

 

 

 

2,700

 

 

 

10,064

 

 

 

2,584

 

 

 

2,620

 

 

 

32,771

 

 

 

7,676

 

 

 

58,731

 

III

 

 

4,955

 

 

 

6,056

 

 

 

4,363

 

 

 

10,938

 

 

 

8,159

 

 

 

27,726

 

 

 

10,192

 

 

 

72,389

 

IV

 

 

536

 

 

 

4,060

 

 

 

6,245

 

 

 

1,038

 

 

 

274

 

 

 

3,110

 

 

 

13,104

 

 

 

28,367

 

Total

 

$

471,051

 

 

$

582,921

 

 

$

359,297

 

 

$

243,299

 

 

$

268,627

 

 

$

663,098

 

 

$

525,557

 

 

$

3,113,850

 

 

 

December 31, 2023

 

Term Loans Amortized Cost Basis by Origination Year

 

 

 

 

 

 

 

(In Thousands)

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

Prior

 

 

Revolving
Loans
Amortized
Cost Basis

 

 

Total

 

Commercial real estate —
   owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I

 

$

31,637

 

 

$

43,156

 

 

$

38,803

 

 

$

44,704

 

 

$

22,078

 

 

$

72,774

 

 

$

451

 

 

$

253,603

 

II

 

 

—

 

 

 

—

 

 

 

—

 

 

 

260

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

260

 

III

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,616

 

 

 

—

 

 

 

2,616

 

IV

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

31,637

 

 

$

43,156

 

 

$

38,803

 

 

$

44,964

 

 

$

22,078

 

 

$

75,390

 

 

$

451

 

 

$

256,479

 

Commercial real estate —
   non-owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I

 

$

71,857

 

 

$

76,689

 

 

$

72,660

 

 

$

78,212

 

 

$

66,262

 

 

$

314,970

 

 

$

32,478

 

 

$

713,128

 

II

 

 

—

 

 

 

—

 

 

 

2,302

 

 

 

2,252

 

 

 

19,838

 

 

 

16,274

 

 

 

—

 

 

 

40,666

 

III

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

19,700

 

 

 

—

 

 

 

19,700

 

IV

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

71,857

 

 

$

76,689

 

 

$

74,962

 

 

$

80,464

 

 

$

86,100

 

 

$

350,944

 

 

$

32,478

 

 

$

773,494

 

Construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I

 

$

63,660

 

 

$

83,161

 

 

$

8,542

 

 

$

744

 

 

$

433

 

 

$

6,528

 

 

$

15,011

 

 

$

178,079

 

II

 

 

—

 

 

 

—

 

 

 

9,289

 

 

 

5,712

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

15,001

 

III

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

IV

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

63,660

 

 

$

83,161

 

 

$

17,831

 

 

$

6,456

 

 

$

433

 

 

$

6,528

 

 

$

15,011

 

 

$

193,080

 

Multi-family

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I

 

$

84,932

 

 

$

41,068

 

 

$

70,054

 

 

$

113,294

 

 

$

22,925

 

 

$

115,243

 

 

$

3,013

 

 

$

450,529

 

II

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

III

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

IV

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

84,932

 

 

$

41,068

 

 

$

70,054

 

 

$

113,294

 

 

$

22,925

 

 

$

115,243

 

 

$

3,013

 

 

$

450,529

 

1-4 family

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I

 

$

4,242

 

 

$

7,684

 

 

$

2,672

 

 

$

2,359

 

 

$

443

 

 

$

2,805

 

 

$

6,062

 

 

$

26,267

 

II

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

III

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

IV

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

22

 

 

 

—

 

 

 

22

 

Total

 

$

4,242

 

 

$

7,684

 

 

$

2,672

 

 

$

2,359

 

 

$

443

 

 

$

2,827

 

 

$

6,062

 

 

$

26,289

 

Commercial and industrial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I

 

$

302,612

 

 

$

144,167

 

 

$

85,504

 

 

$

38,164

 

 

$

20,151

 

 

$

26,490

 

 

$

415,301

 

 

$

1,032,389

 

II

 

 

1,496

 

 

 

5,280

 

 

 

785

 

 

 

353

 

 

 

94

 

 

 

219

 

 

 

5,706

 

 

 

13,933

 

III

 

 

1,093

 

 

 

7,168

 

 

 

1,882

 

 

 

5,919

 

 

 

3,861

 

 

 

3,957

 

 

 

15,058

 

 

 

38,938

 

IV

 

 

1,482

 

 

 

6,519

 

 

 

1,319

 

 

 

321

 

 

 

133

 

 

 

1,644

 

 

 

9,157

 

 

 

20,575

 

Total

 

$

306,683

 

 

$

163,134

 

 

$

89,490

 

 

$

44,757

 

 

$

24,239

 

 

$

32,310

 

 

$

445,222

 

 

$

1,105,835

 

Consumer and other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I

 

$

5,920

 

 

$

8,786

 

 

$

3,167

 

 

$

12,193

 

 

$

2,049

 

 

$

3,485

 

 

$

8,712

 

 

$

44,312

 

II

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

III

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

IV

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

5,920

 

 

$

8,786

 

 

$

3,167

 

 

$

12,193

 

 

$

2,049

 

 

$

3,485

 

 

$

8,712

 

 

$

44,312

 

Total Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I

 

$

564,860

 

 

$

404,711

 

 

$

281,402

 

 

$

289,670

 

 

$

134,341

 

 

$

542,295

 

 

$

481,028

 

 

$

2,698,307

 

II

 

 

1,496

 

 

 

5,280

 

 

 

12,376

 

 

 

8,577

 

 

 

19,932

 

 

 

16,493

 

 

 

5,706

 

 

 

69,860

 

III

 

 

1,093

 

 

 

7,168

 

 

 

1,882

 

 

 

5,919

 

 

 

3,861

 

 

 

26,273

 

 

 

15,058

 

 

 

61,254

 

IV

 

 

1,482

 

 

 

6,519

 

 

 

1,319

 

 

 

321

 

 

 

133

 

 

 

1,666

 

 

 

9,157

 

 

 

20,597

 

Total

 

$

568,931

 

 

$

423,678

 

 

$

296,979

 

 

$

304,487

 

 

$

158,267

 

 

$

586,727

 

 

$

510,949

 

 

$

2,850,018

 

 

Each credit is evaluated for proper risk rating upon origination, at the time of each subsequent renewal, upon receipt and evaluation of updated financial information from the Corporation’s borrowers, or as other circumstances dictate. The Corporation uses a nine grade risk rating system to monitor the ongoing credit quality of its loans and leases. The risk rating grades follow a consistent definition and are then applied to specific loan types based on the nature of the loan. Each risk rating is determined based on various quantitative and qualitative factors and is subject to various levels of review and concurrence on the stated risk rating. In addition to its nine grade risk

rating system, the Corporation groups loans into four loan and related risk categories which determine the level and nature of review by management.

Category I — Loans and leases in this category are performing in accordance with the terms of the contract and generally exhibit no immediate concerns regarding the security and viability of the underlying collateral, financial stability of the borrower, integrity or strength of the borrowers’ management team, or the industry in which the borrower operates. The Corporation monitors Category I loans and leases through payment performance, continued maintenance of its personal relationships with such borrowers, and continued review of such borrowers’ compliance with the terms of their respective agreements.

Category II — Loans and leases in this category are beginning to show signs of deterioration in one or more of the Corporation’s core underwriting criteria such as financial stability, management strength, industry trends, or collateral values. Management will place credits in this category to allow for proactive monitoring and resolution with the borrower to possibly mitigate the area of concern and prevent further deterioration or risk of loss to the Corporation. Category II loans are considered performing but are monitored frequently by the assigned business development officer and by asset quality review committees.

Category III — Loans and leases in this category are identified by management as warranting special attention. However, the balance in this category is not intended to represent the amount of adversely classified assets held by the Bank. Category III loans and leases generally exhibit undesirable characteristics, such as evidence of adverse financial trends and conditions, managerial problems, deteriorating economic conditions within the related industry, or evidence of adverse public filings and may exhibit collateral shortfall positions. Management continues to believe that it will collect all contractual principal and interest in accordance with the original terms of the contracts relating to the loans and leases in this category, and therefore Category III loans are considered performing with no specific reserves established for this category. Category III loans are monitored by management and asset quality review committees on a monthly basis.

Category IV — Loans and leases in this category are non-accrual loans. Management has determined that it is unlikely that the Bank will receive the contractual principal and interest in accordance with the original terms of the agreement. Non-accrual loans are individually evaluated to assess the need for the establishment of specific reserves or charge-offs. When analyzing the adequacy of collateral, the Corporation obtains external appraisals at least annually. External appraisals are obtained from the Corporation’s approved appraiser listing and are independently reviewed to monitor the quality of such appraisals. To the extent a collateral shortfall position is present, a specific reserve or charge-off will be recorded. Loans and leases in this category are monitored by management and asset quality review committees on a monthly basis.

The delinquency aging of the loan and lease portfolio by class of receivable was as follows:

 

 

 

December 31, 2024

 

 

 

30-59
Days Past
Due

 

 

60-89
Days Past
Due

 

 

Greater
Than 90
Days Past
Due

 

 

Total Past
Due

 

 

Current

 

 

Total
Loans and
Leases

 

 

 

(Dollars in Thousands)

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner occupied

 

$

1,102

 

 

$

—

 

 

$

—

 

 

$

1,102

 

 

$

272,295

 

 

$

273,397

 

Non-owner occupied

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

845,298

 

 

 

845,298

 

Construction

 

 

14,321

 

 

 

263

 

 

 

—

 

 

 

14,584

 

 

 

206,502

 

 

 

221,086

 

Multi-family

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

530,853

 

 

 

530,853

 

1-4 family

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

46,496

 

 

 

46,496

 

Commercial and industrial

 

 

5,405

 

 

 

1,072

 

 

 

18,984

 

 

 

25,461

 

 

 

1,126,259

 

 

 

1,151,720

 

Consumer and other

 

 

—

 

 

 

10

 

 

 

—

 

 

 

10

 

 

 

44,990

 

 

 

45,000

 

Total

 

$

20,828

 

 

$

1,345

 

 

$

18,984

 

 

$

41,157

 

 

$

3,072,693

 

 

$

3,113,850

 

Percent of portfolio

 

 

0.67

%

 

 

0.04

%

 

 

0.61

%

 

 

1.32

%

 

 

98.68

%

 

 

100.00

%

 

 

 

 

December 31, 2023

 

 

 

30-59
Days Past
Due

 

 

60-89
Days Past
Due

 

 

Greater
Than 90
Days Past
Due

 

 

Total Past
Due

 

 

Current

 

 

Total
Loans and
Leases

 

 

 

(Dollars in Thousands)

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner occupied

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

256,479

 

 

$

256,479

 

Non-owner occupied

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

773,494

 

 

 

773,494

 

Construction

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

193,080

 

 

 

193,080

 

Multi-family

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

450,529

 

 

 

450,529

 

1-4 family

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

26,289

 

 

 

26,289

 

Commercial and industrial

 

 

3,430

 

 

 

1,041

 

 

 

18,347

 

 

 

22,818

 

 

 

1,083,017

 

 

 

1,105,835

 

Consumer and other

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

44,312

 

 

 

44,312

 

Total

 

$

3,430

 

 

$

1,041

 

 

$

18,347

 

 

$

22,818

 

 

$

2,827,200

 

 

$

2,850,018

 

Percent of portfolio

 

 

0.12

%

 

 

0.04

%

 

 

0.64

%

 

 

0.80

%

 

 

99.20

%

 

 

100.00

%

 

The following tables provide additional detail on loans on non-accrual status and loans past due over 89 days still accruing as of:

 

 

 

December 31, 2024

 

 

 

Non-accrual
With No
Allowance for
Credit Loss

 

 

Non-accrual
With
Allowance
for Credit
Loss

 

 

Loans Past
Due Over
89 Days
Still Accruing

 

 

 

(In Thousands)

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

Commercial real estate — owner occupied

 

$

—

 

 

$

591

 

 

$

—

 

Commercial real estate — non-owner occupied

 

 

—

 

 

 

—

 

 

 

—

 

Construction

 

 

—

 

 

 

—

 

 

 

—

 

Multi-family

 

 

—

 

 

 

—

 

 

 

—

 

1-4 family

 

 

—

 

 

 

—

 

 

 

—

 

Total commercial real estate

 

 

—

 

 

 

591

 

 

 

—

 

Commercial and industrial

 

 

13,125

 

 

 

14,651

 

 

 

—

 

Consumer and other

 

 

—

 

 

 

—

 

 

 

—

 

Total non-accrual loans and leases

 

$

13,125

 

 

$

15,242

 

 

$

—

 

 

 

 

December 31, 2023

 

 

 

Non-accrual
With No
Allowance for
Credit Loss

 

 

Non-accrual
With
Allowance
for Credit
Loss

 

 

Loans Past
Due Over
89 Days
Still Accruing

 

 

 

(In Thousands)

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

Commercial real estate — owner occupied

 

$

—

 

 

$

—

 

 

$

—

 

Commercial real estate — non-owner occupied

 

 

—

 

 

 

—

 

 

 

—

 

Construction

 

 

—

 

 

 

—

 

 

 

—

 

Multi-family

 

 

—

 

 

 

—

 

 

 

—

 

1-4 family

 

 

—

 

 

 

22

 

 

 

—

 

Total commercial real estate

 

 

—

 

 

 

22

 

 

 

—

 

Commercial and industrial

 

 

9,691

 

 

 

10,884

 

 

 

—

 

Consumer and other

 

 

—

 

 

 

—

 

 

 

—

 

Total non-accrual loans and leases

 

$

9,691

 

 

$

10,906

 

 

$

—

 

 

 

 

December 31,
2024

 

 

December 31,
2023

 

Total non-accrual loans and leases to gross loans
   and leases

 

 

0.91

%

 

 

0.72

%

Allowance for credit losses to gross loans and leases

 

 

1.20

 

 

 

1.16

 

Allowance for credit losses to non-accrual loans
   and leases

 

 

131.38

 

 

 

160.21

 

 

The following table presents the amortized cost basis of the non-accrual, collateral-dependent commercial and industrial loans as of:

 

 

 

December 31,
2024

 

 

December 31,
2023

 

 

 

(In Thousands)

 

Inventory

 

$

—

 

 

$

8,879

 

Equipment

 

 

18,185

 

 

 

8,903

 

Real Estate

 

 

926

 

 

 

46

 

Accounts Receivable

 

 

6,570

 

 

 

278

 

Other

 

 

821

 

 

 

1,348

 

Total

 

$

26,502

 

 

$

19,454

 

 

Occasionally, the Corporation modifies loans to borrowers in financial distress by providing principal forgiveness, term extension, an other-than-insignificant payment delay or interest rate reduction. When principal forgiveness is provided, the amount of forgiveness is charged-off against the allowance for credit losses.

The following table presents the amortized cost basis of loans at December 31, 2024 that were both experiencing financial difficulty and modified during the years ended December 31, 2024 and 2023, by class and by type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized costs basis of each class of financing receivable is also presented below.

 

 

 

For the Year Ended December 31, 2024

 

 

Principal
Forgiveness

 

Payment
Delay

 

Term
Extension

 

Interest Rate
Reduction

 

Combination Term Extension and Payment Delay

 

Total

 

Total Class
of Financing
Receivable

 

 

(In Thousands)

 

 

Commercial real estate

 

$—

 

$5,901

 

$—

 

$—

 

$—

 

$5,901

 

0.31%

Commercial and industrial

 

—

 

7,108

 

455

 

—

 

550

 

8,113

 

0.70

Total

 

$—

 

$13,009

 

$455

 

$—

 

$550

 

$14,014

 

0.45%

 

 

 

For the Year Ended December 31, 2023

 

 

Principal
Forgiveness

 

Payment
Delay

 

Term
Extension

 

Interest Rate
Reduction

 

Combination Term Extension and Payment Delay

 

Total

 

Total Class
of Financing
Receivable

 

 

(In Thousands)

 

 

Commercial real estate

 

$—

 

$—

 

$—

 

$—

 

$—

 

$—

 

0.00%

Commercial and industrial

 

—

 

882

 

—

 

—

 

—

 

882

 

0.08

Total

 

$—

 

$882

 

$—

 

$—

 

$—

 

$882

 

0.03%

 

The Corporation closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents the performance of such loans that have been modified in the last 12 months:

 

 

 

For the Year Ended December 31, 2024

 

 

 

30-59
Days Past
Due

 

 

60-89
Days Past
Due

 

 

Greater
Than 90
Days Past
Due

 

 

Total Past
Due

 

 

 

(Dollars in Thousands)

 

Commercial real estate

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Commercial and industrial

 

 

—

 

 

 

—

 

 

 

410

 

 

 

410

 

Total

 

$

—

 

 

$

—

 

 

$

410

 

 

$

410

 

 

 

 

For the Year Ended December 31, 2023

 

 

 

30-59
Days Past
Due

 

 

60-89
Days Past
Due

 

 

Greater
Than 90
Days Past
Due

 

 

Total Past
Due

 

 

 

(Dollars in Thousands)

 

Commercial real estate

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Commercial and industrial

 

 

—

 

 

 

—

 

 

 

382

 

 

 

382

 

Total

 

$

—

 

 

$

—

 

 

$

382

 

 

$

382

 

 

The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the years ended December 31, 2024 and 2023:

 

 

 

For the Year Ended December 31, 2024

 

(Dollars in Thousands)

 

Principal
Forgiveness

 

 

Weighted
Average
Interest Rate
Reduction

 

 

Weighted
Average Term
Extension
(years)

 

 

Weighted
Average
Payment Delay
(years)

 

Commercial real estate

 

$

—

 

 

$

—

 

 

 

0.00

 

 

 

1.17

 

Commercial and industrial

 

 

—

 

 

 

—

 

 

 

0.78

 

 

 

0.73

 

Total

 

$

—

 

 

$

—

 

 

 

0.78

 

 

 

1.90

 

 

 

 

For the Year Ended December 31, 2023

 

(Dollars in Thousands)

 

Principal
Forgiveness

 

 

Weighted
Average
Interest Rate
Reduction

 

 

Weighted
Average Term
Extension
(years)

 

 

Weighted
Average
Payment Delay
(years)

 

Commercial real estate

 

$

—

 

 

$

—

 

 

 

0.00

 

 

 

0.00

 

Commercial and industrial

 

 

—

 

 

 

—

 

 

 

0.00

 

 

 

0.52

 

Total

 

$

—

 

 

$

—

 

 

 

0.00

 

 

 

0.52

 

 

The following table presents the amortized cost basis of loans that had a payment default during the years ended December 31, 2024 and 2023 and were modified in the 12 months prior to that default to borrowers experience financial difficulty:

 

 

 

For the Year Ended December 31, 2024

 

 

 

Principal
Forgiveness

 

 

Payment Delay

 

 

Term Extension

 

 

Interest Rate
Reduction

 

 

 

(In Thousands)

 

Commercial real estate

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Commercial and industrial

 

 

—

 

 

 

753

 

 

 

—

 

 

 

—

 

Total

 

$

—

 

 

$

753

 

 

$

—

 

 

$

—

 

 

 

 

For the Year Ended December 31, 2023

 

 

 

Principal
Forgiveness

 

 

Payment Delay

 

 

Term Extension

 

 

Interest Rate
Reduction

 

 

 

(In Thousands)

 

Commercial real estate

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Commercial and industrial

 

 

—

 

 

 

382

 

 

 

—

 

 

 

—

 

Total

 

$

—

 

 

$

382

 

 

$

—

 

 

$

—

 

 

Allowance for Credit Losses

The ACL is an estimate of the expected credit losses on financial assets measured at amortized cost, which is measured using relevant information about past events, including historical credit loss experience on financial assets with similar risk characteristics, current conditions, and reasonable and supportable forecasts that affect the collectability of the remaining cash flows over the contractual term of the financial assets.

Quantitative Considerations

The ACL is primarily calculated utilizing a Discounted Cash Flow (“DCF”) model. Key inputs and assumptions used in this model are discussed below:

•
Forecast model - For each portfolio segment, a Loss Driver Analysis (“LDA”) was performed in order to identify appropriate loss drivers and create a regression model for use in forecasting cash flows. The LDA analysis utilized peer FFIEC Call Report data for all DCF pools. The Corporation plans to update the LDA annually.
•
Probability of Default ("PD") – PD is the probability that an asset will be in default within a given time frame. The Corporation has defined default as when a charge-off has occurred, a loan goes to non-accrual status, or a loan is greater than 90 days past due. The forecast model is utilized to estimate PDs.
•
Loss Given Default ("LGD") – LGD is the percentage of the asset not expected to be collected due to default. The LGD is derived from using a method referred to as Frye Jacobs which uses industry data.
•
Prepayments and curtailments – Prepayments and curtailments are calculated based on the Corporation’s own data. This analysis is updated semi-annually.
•
Forecast and reversion – The Corporation has established a one-year reasonable and supportable forecast period with a one-year straight line reversion to the long-term historical average.
•
Economic forecast – The Corporation utilizes a third party to provide economic forecasts under various scenarios, which are assessed against economic indicators and management’s observations in the market. As of December 31, 2023, the Corporation selected a forecast which estimates unemployment between 3.89% and 4.04% and GDP growth change between 1.29% and 2.32% over the next four quarters. As of December 31, 2024, the Corporation selected a forecast which estimates unemployment between 4.12% and 4.20% and GDP growth change between 1.85% and 2.65% over the next four quarters. Following the forecast period, the model reverts to long-term averages over four quarters. Management believes that the resulting quantitative reserve appropriately balances economic indicators with identified risks.

Qualitative Considerations

In addition to the quantitative model, management considers the need for qualitative adjustment for risks not considered in the DCF. Factors that are considered by management in determining loan collectability and the appropriate level of the ACL are listed below:

•
The Corporation’s lending policies and procedures, including changes in lending strategies, underwriting standards and practices for collections, write-offs, and recoveries;
•
Actual and expected changes in international, national, regional, and local economic and business conditions and developments in which the Corporation operates that affect the collectability of financial assets;
•
The experience, ability, and depth of the Corporation’s lending, investment, collection, and other relevant management and staff;
•
The volume of past due financial assets, the volume of non-accrual loans and leases, and the volume and severity of adversely classified or graded assets;
•
The existence and effect of industry concentrations of credit;
•
The nature and volume of the portfolio segment or class;
•
The quality of the Corporation’s credit function; and
•
The effect of other external factors such as the regulatory, legal and technological environments, competition, and events such as natural disasters or pandemics.

ACL Activity

A summary of the activity in the allowance for credit losses by portfolio segment is as follows:

 

 

 

As of and for the Year Ended December 31, 2024

 

 

 

Owner
Occupied

 

 

Non-Owner
Occupied

 

 

Construction

 

 

Multi-
Family

 

 

1-4 Family

 

 

Commercial
and
Industrial

 

 

Consumer
and Other

 

 

Total

 

 

 

(In Thousands)

 

Beginning balance

 

$

1,540

 

 

$

5,636

 

 

$

2,125

 

 

$

3,571

 

 

$

266

 

 

$

19,408

 

 

$

451

 

 

$

32,997

 

Charge-offs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(5,233

)

 

 

(22

)

 

 

(5,255

)

Recoveries

 

 

5

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

132

 

 

 

541

 

 

 

21

 

 

 

699

 

Net recoveries (charge-offs)

 

 

5

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

132

 

 

 

(4,692

)

 

 

(1

)

 

 

(4,556

)

Provision for credit losses

 

 

84

 

 

 

256

 

 

 

701

 

 

 

1,042

 

 

 

125

 

 

 

6,754

 

 

 

(135

)

 

 

8,827

 

Ending balance

 

$

1,629

 

 

$

5,892

 

 

$

2,826

 

 

$

4,613

 

 

$

523

 

 

$

21,470

 

 

$

315

 

 

$

37,268

 

Components:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses on
   loans

 

$

1,615

 

 

$

5,843

 

 

$

2,022

 

 

$

4,597

 

 

$

492

 

 

$

20,934

 

 

$

282

 

 

$

35,785

 

Allowance for credit losses on
   unfunded credit commitments

 

 

14

 

 

 

49

 

 

 

804

 

 

 

16

 

 

 

31

 

 

 

536

 

 

 

33

 

 

 

1,483

 

Total ACL

 

$

1,629

 

 

$

5,892

 

 

$

2,826

 

 

$

4,613

 

 

$

523

 

 

$

21,470

 

 

$

315

 

 

$

37,268

 

 

 

 

As of and for the Year Ended December 31, 2023

 

 

 

Owner
Occupied

 

 

Non-Owner
Occupied

 

 

Construction

 

 

Multi-
Family

 

 

1-4 Family

 

 

Commercial
and
Industrial

 

 

Consumer
and Other

 

 

Total

 

 

 

(In Thousands)

 

Beginning balance

 

$

1,766

 

 

$

5,108

 

 

$

1,646

 

 

$

2,634

 

 

$

207

 

 

$

12,403

 

 

$

466

 

 

$

24,230

 

Impact of adopting ASC 326

 

 

(204

)

 

 

(242

)

 

 

796

 

 

 

(386

)

 

 

(45

)

 

 

1,873

 

 

 

26

 

 

 

1,818

 

Charge-offs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,781

)

 

 

—

 

 

 

(1,781

)

Recoveries

 

 

9

 

 

 

1

 

 

 

—

 

 

 

—

 

 

 

40

 

 

 

478

 

 

 

20

 

 

 

548

 

Net recoveries (charge-offs)

 

 

9

 

 

 

1

 

 

 

—

 

 

 

—

 

 

 

40

 

 

 

(1,303

)

 

 

20

 

 

 

(1,233

)

Provision for credit losses

 

 

(31

)

 

 

769

 

 

 

(317

)

 

 

1,323

 

 

 

64

 

 

 

6,435

 

 

 

(61

)

 

 

8,182

 

Ending balance

 

$

1,540

 

 

$

5,636

 

 

$

2,125

 

 

$

3,571

 

 

$

266

 

 

$

19,408

 

 

$

451

 

 

$

32,997

 

Components:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses on
   loans

 

$

1,525

 

 

$

5,596

 

 

$

1,244

 

 

$

3,562

 

 

$

243

 

 

$

18,710

 

 

$

395

 

 

$

31,275

 

Allowance for credit losses on
   unfunded credit commitments

 

 

15

 

 

 

40

 

 

 

881

 

 

 

9

 

 

 

23

 

 

 

698

 

 

 

56

 

 

 

1,722

 

Total ACL

 

$

1,540

 

 

$

5,636

 

 

$

2,125

 

 

$

3,571

 

 

$

266

 

 

$

19,408

 

 

$

451

 

 

$

32,997

 

 

 

 

As of and for the Year Ended December 31, 2022

 

 

 

Commercial Real Estate

 

 

Commercial and Industrial

 

 

Consumer and Other

 

 

Total

 

 

 

(In Thousands)

 

Beginning balance

 

$

15,110

 

 

$

8,413

 

 

$

813

 

 

$

24,336

 

Charge-offs

 

 

—

 

 

 

(958

)

 

 

(21

)

 

 

(979

)

Recoveries

 

 

4,262

 

 

 

437

 

 

 

42

 

 

 

4,741

 

Net recoveries (charge-offs)

 

 

4,262

 

 

 

(521

)

 

 

21

 

 

 

3,762

 

Provision for credit losses

 

 

(6,812

)

 

 

3,236

 

 

 

(292

)

 

 

(3,868

)

Ending balance

 

$

12,560

 

 

$

11,128

 

 

$

542

 

 

$

24,230

 

 

ACL Summary

Loans collectively evaluated for credit losses in the following tables include all performing loans at December 31, 2024 and December 31, 2023. Loans individually evaluated for credit losses include all non-accrual loans.

The following tables provide information regarding the allowance for credit losses and balances by type of allowance methodology.

 

 

 

As of December 31, 2024

 

 

 

Owner
Occupied

 

 

Non-Owner
Occupied

 

 

Construction

 

 

Multi-
Family

 

 

1-4 Family

 

 

Commercial
and
Industrial

 

 

Consumer
and Other

 

 

Total

 

 

 

(In Thousands)

 

Allowance for credit losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collectively evaluated for
   credit losses

 

$

1,615

 

 

$

5,843

 

 

$

2,022

 

 

$

4,597

 

 

$

492

 

 

$

12,016

 

 

$

282

 

 

$

26,867

 

Individually evaluated for
   credit loss

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

8,918

 

 

 

—

 

 

 

8,918

 

Total

 

$

1,615

 

 

$

5,843

 

 

$

2,022

 

 

$

4,597

 

 

$

492

 

 

$

20,934

 

 

$

282

 

 

$

35,785

 

Loans and lease receivables:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collectively evaluated for
   credit losses

 

$

272,806

 

 

$

845,298

 

 

$

221,086

 

 

$

530,853

 

 

$

46,496

 

 

$

1,123,944

 

 

$

45,000

 

 

$

3,085,483

 

Individually evaluated for
   credit loss

 

 

591

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

27,776

 

 

 

—

 

 

 

28,367

 

Total

 

$

273,397

 

 

$

845,298

 

 

$

221,086

 

 

$

530,853

 

 

$

46,496

 

 

$

1,151,720

 

 

$

45,000

 

 

$

3,113,850

 

 

 

 

As of December 31, 2023

 

 

 

Owner
Occupied

 

 

Non-Owner
Occupied

 

 

Construction

 

 

Multi-
Family

 

 

1-4 Family

 

 

Commercial
and
Industrial

 

 

Consumer
and Other

 

 

Total

 

 

 

(In Thousands)

 

Allowance for credit losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collectively evaluated for
   credit losses

 

$

1,525

 

 

$

5,596

 

 

$

1,244

 

 

$

3,562

 

 

$

221

 

 

$

12,743

 

 

$

395

 

 

$

25,286

 

Individually evaluated for
   credit loss

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

22

 

 

 

5,967

 

 

 

—

 

 

 

5,989

 

Total

 

$

1,525

 

 

$

5,596

 

 

$

1,244

 

 

$

3,562

 

 

$

243

 

 

$

18,710

 

 

$

395

 

 

$

31,275

 

Loans and lease receivables:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collectively evaluated for
   credit losses

 

$

256,479

 

 

$

773,494

 

 

$

193,080

 

 

$

450,529

 

 

$

26,267

 

 

$

1,085,260

 

 

$

44,312

 

 

$

2,829,421

 

Individually evaluated for
   credit loss

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

22

 

 

 

20,575

 

 

 

—

 

 

 

20,597

 

Total

 

$

256,479

 

 

$

773,494

 

 

$

193,080

 

 

$

450,529

 

 

$

26,289

 

 

$

1,105,835

 

 

$

44,312

 

 

$

2,850,018

 
v3.25.0.1
Premises and Equipment
 12 Months Ended
Dec. 31, 2024
Property, Plant and Equipment [Abstract]  
Premises and Equipment

Note 5 — Premises and Equipment

A summary of premises and equipment was as follows:

 

 

As of December 31,

 

 

2024

 

 

2023

 

 

(In Thousands)

 

Leasehold improvements

 

$

5,572

 

 

$

5,557

 

Furniture and equipment

 

 

9,480

 

 

 

9,361

 

Total premises and equipment

 

 

15,052

 

 

 

14,918

 

Less: accumulated depreciation

 

 

(9,825

)

 

 

(8,728

)

Total premises and equipment, net

 

$

5,227

 

 

$

6,190

 

 

Depreciation expense was $1.1 million, $961,000, and $578,000 for the years ended December 31, 2024, 2023, and 2022, respectively. During 2023, the Corporation relocated its Kansas City metropolitan office. This resulted in additional leasehold improvements and equipment of $1.3 million and $606,000, respectively. During 2022, the Corporation relocated its Southeastern Wisconsin office. This resulted in additional leasehold improvements and equipment of $1.8 million and $602,000, respectively.
v3.25.0.1
Leases
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Leases

Note 6 — Leases

The Corporation leases various office spaces and specialized lending production offices under non-cancellable operating leases which expire on various dates through 2033. The Corporation also leases office equipment. The Corporation recognizes a right-of-use asset and an operating lease liability for all leases, with the exception of short-term leases. Right-of-use assets represent the right to use an underlying asset for the lease term and lease liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. Lease expense for operating leases and short-term leases is recognized on a straight-line basis over the lease term.

In June 2023, the Corporation relocated its Kansas City metropolitan area office. This resulted in a $2.6 million right-of-use asset and $3.7 million lease liability, which was recorded in October 2022. The Corporation received a $1.1 million tenant improvement allowance related to this lease, which was recognized as a lease incentive and deducted from the right-of-use asset.

In November 2022, the Corporation relocated its Southeast Wisconsin office. This resulted in a $1.6 million right-of-use asset and $2.5 million lease liability. The Corporation received a $991,000 tenant improvement allowance related to this lease, which was recognized as a lease incentive and deducted from the right-of-use asset.

The components of total lease expense were as follows:

 

 

 

For the Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

 

 

(In Thousands)

 

Operating lease cost

 

$

1,366

 

 

$

1,411

 

 

$

1,544

 

Short-term lease cost

 

 

140

 

 

 

200

 

 

 

148

 

Variable lease cost

 

 

572

 

 

 

576

 

 

 

604

 

Less: sublease income

 

 

—

 

 

 

(75

)

 

 

(179

)

Total lease cost, net

 

$

2,078

 

 

$

2,112

 

 

$

2,117

 

 

Quantitative information regarding the Corporation’s operating leases was as follows:

 

 

 

December 31, 2024

 

 

December 31, 2023

 

 

December 31, 2022

 

Weighted-average remaining lease term (in years)

 

 

6.93

 

 

 

7.70

 

 

 

8.06

 

Weighted-average discount rate

 

 

3.37

%

 

 

3.61

%

 

 

3.40

%

 

The following maturity analysis shows the undiscounted cash flows due on the Corporation’s operating lease liabilities:

 

(In Thousands)

 

 

 

2025

 

$

1,488

 

2026

 

 

1,448

 

2027

 

 

1,469

 

2028

 

 

1,113

 

2029

 

 

792

 

Thereafter

 

 

2,808

 

Total undiscounted cash flows

 

 

9,118

 

Discount on cash flows

 

 

(1,192

)

Total lease liability

 

$

7,926

 
v3.25.0.1
Goodwill and Other Intangible Assets
 12 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets

Note 7 — Goodwill and Other Intangible Assets

Goodwill

Goodwill is not amortized, but is subject to impairment tests on an annual basis and more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount (including goodwill). At December 31, 2024 and 2023, the Corporation had goodwill of $10.7 million, which was related to the acquisition of Alterra Bank in 2014.

The Corporation conducted its annual impairment test on July 1, 2024, utilizing a qualitative assessment, and concluded that it was more likely than not the estimated fair value of the reporting unit exceeded its carrying value, resulting in no impairment.

Other Intangible Assets

The Corporation has intangible assets that are amortized consisting of loan servicing rights.

Loan servicing rights are recognized upon sale of the guaranteed portions of SBA loans with servicing rights retained. When SBA loans are sold, servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Loan servicing assets are subsequently measured using the amortization method, which requires servicing rights to be amortized into interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. The amortization of loan servicing rights is included in interest income in the accompanying Consolidated Statement of Income.

Activity in the Corporation's servicing asset and related valuation allowance is as follows:

 

 

For the Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

 

 

(In Thousands)

 

Loan Servicing Rights:

 

 

 

 

 

 

 

 

 

Carrying amount, net, beginning of year

 

$

1,356

 

 

$

1,492

 

 

$

1,601

 

Additions

 

 

390

 

 

 

437

 

 

 

525

 

Amortization

 

 

(537

)

 

 

(500

)

 

 

(634

)

Change in valuation allowance

 

 

36

 

 

 

(73

)

 

 

—

 

Carrying amount, net, end of year

 

$

1,245

 

 

$

1,356

 

 

$

1,492

 

 

 

 

 

 

 

 

 

 

 

Valuation Allowance:

 

 

 

 

 

 

 

 

 

Beginning of year

 

$

88

 

 

$

15

 

 

$

15

 

Change in valuation allowance

 

 

(36

)

 

 

73

 

 

 

—

 

End of year

 

$

52

 

 

$

88

 

 

$

15

 

The estimated fair value of the Corporation’s loan servicing asset was $1.2 million and $1.4 million as of December 31, 2024 and 2023, respectively. The Corporation periodically reviews this portfolio for impairment and engages a third-party valuation firm to assess the fair value of the overall servicing rights portfolio. The fair value at December 31, 2024 was established using a discount rate of 13.75% and a constant prepayment rate ("CPR") of 16.05%. The fair value at December 31, 2023 was established using a discount rate of 14.50% and a CPR of 15.50%.
v3.25.0.1
Other Assets
 12 Months Ended
Dec. 31, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Other Assets

Note 8 — Other Assets

The Corporation is a limited partner in several limited partnership investments. The Corporation is not the general partner, does not have controlling ownership, and is not the primary beneficiary in any of these limited partnerships and the limited partnerships have not been consolidated. These investments are accounted for using the equity and proportional amortization method of accounting and are evaluated for impairment at the end of each reporting period.

Historic Rehabilitation Tax Credits

The Corporation invests in development entities through Mitchell Street and FBB Tax Credit, wholly-owned subsidiaries of FBB, to rehabilitate historic buildings. At December 31, 2024 and 2023, the net carrying value of the investments was $4.1 million and $2.4 million, respectively. During 2024 and 2023, the Corporation invested $2.5 million and $285,000, respectively, in these partnerships. During 2022, the Corporation had no activity related to these investments.

Low-Income Housing Tax Credits

The Corporation invests in development entities through FBB Tax Credit, a wholly-owned subsidiary of FBB, to develop buildings that offer low-income housing. These investments are accounted for using the proportional amortization method of accounting. At December 31, 2024 and 2023, the net carrying value of the investments were $40.3 million and $33.3 million, respectively. During

2024, 2023, and 2022, the Corporation invested $14.6 million, $24.0 million, and $11.5 million in these partnerships, respectively. During 2024 and 2023, the Corporation recognized $7.6 million and $5.3 million in tax benefit, respectively, and $6.0 million and $4.1 million in amortization, respectively, related to these partnerships. Amortization is included in income tax expense in the accompanying Consolidated Statements of Income.

Other Investments

The Corporation’s equity investment in SBIC funds, consisting of Aldine Capital Fund II, LP, Aldine Capital Fund III, LP, Aldine Capital Fund IV, LP, and Northstar Capital Fund, LP totaled $12.9 million and $13.5 million as of December 31, 2024 and 2023, respectively. As of December 31, 2024, the Corporation has $8.9 million remaining of the original $20.0 million commitment to these partnerships. The Corporation’s share of these partnerships’ income included in other non-interest income in the Consolidated Statements of Income for the years ended December 31, 2024, 2023, and 2022 was $1.9 million, $4.8 million, and $3.0 million, respectively. The Corporation’s share of these partnerships’ losses included in other non-interest expense in the Consolidated Statements of Income for the years ended December 31, 2024, 2023, and 2022 was $69,000, $101,000, and $0, respectively.

The Corporation’s equity investment in Dane Workforce Housing Fund LLC and Dane Workforce Housing Fund II LLC, a Wisconsin limited liability company focused on community development by providing affordable workforce housing units in Dane County, Wisconsin, totaled $1.1 million and $916,000 as of December 31, 2024 and 2023, respectively. The Corporation has $853,000 remaining of the original $2.0 million commitment to these investments as of December 31, 2024. The Corporation’s share of the investment fund’s income included in other non-interest income in the Consolidated Statements of Income for the years ended December 31, 2024, 2023, and 2022 was $16,000, $13,000, and $8,000, respectively. The Corporation’s share of this partnerships’ losses included in other non-interest expense in the Consolidated Statements of Income for the year ended December 31, 2024 was $10,000. There were no losses related to this investment during the years ended December 31, 2023 and 2022.

The Corporation’s equity investment in BankTech Ventures, LP, a venture capital fund, focused on the community banking industry through strategic investments in growth-stage startups that directly support community banking needs, totaled $622,000 and $569,000 as of December 31, 2024 and 2023, respectively. The Corporation had a $380,000 commitment remaining of the original $1.0 million as of December 31, 2024. The Corporation’s share of the investment fund’s income included in other non-interest income in the Consolidated Statements of Income for the years ended December 31, 2024 and 2023 was $14,000 and $211,000, respectively. There was no income related to this investment during the years ended December 31, 2022. The Corporation’s share of this partnerships’ losses included in other non-interest expense in the Consolidated Statements of Income for the years ended December 31, 2024, 2023, and 2022 was $19,000, $2,000 and $21,000, respectively.

A summary of accrued interest receivable and other assets was as follows:

 

 

 

December 31, 2024

 

 

December 31, 2023

 

 

 

(In Thousands)

 

Accrued interest receivable

 

$

12,879

 

 

$

13,275

 

Net deferred tax asset

 

 

12,599

 

 

 

9,508

 

Investment in historic development entities

 

 

4,133

 

 

 

2,393

 

Investment in low-income housing development entities

 

 

40,259

 

 

 

33,303

 

Investment in limited partnerships

 

 

14,680

 

 

 

15,027

 

Prepaid expenses

 

 

4,221

 

 

 

4,269

 

Other assets

 

 

10,288

 

 

 

13,283

 

Total accrued interest receivable and other assets

 

$

99,059

 

 

$

91,058

 

 
v3.25.0.1
Deposits
 12 Months Ended
Dec. 31, 2024
Deposits [Abstract]  
Deposits

Note 9 — Deposits

The composition of deposits is shown below. Average balances represent year-to-date averages.

 

 

 

December 31, 2024

 

 

December 31, 2023

 

 

 

Balance

 

 

Average
Balance

 

 

Average
Rate

 

 

Balance

 

 

Average
Balance

 

 

Average
Rate

 

 

 

(Dollars in Thousands)

 

Non-interest-bearing transaction accounts

 

$

436,111

 

 

$

441,313

 

 

 

—

%

 

$

445,376

 

 

$

453,930

 

 

 

—

%

Interest-bearing transaction accounts

 

 

965,637

 

 

 

884,321

 

 

 

3.82

 

 

 

895,319

 

 

 

689,500

 

 

 

3.44

 

Money market accounts

 

 

809,695

 

 

 

815,603

 

 

 

3.95

 

 

 

711,245

 

 

 

681,336

 

 

 

3.25

 

Certificates of deposit

 

 

184,986

 

 

 

237,228

 

 

 

4.59

 

 

 

287,131

 

 

 

273,387

 

 

 

4.10

 

Wholesale deposits

 

 

710,711

 

 

 

515,196

 

 

 

4.09

 

 

 

457,708

 

 

 

346,285

 

 

 

4.14

 

Total deposits

 

$

3,107,140

 

 

$

2,893,661

 

 

 

3.37

 

 

$

2,796,779

 

 

$

2,444,438

 

 

 

2.92

 

 

A summary of annual maturities of core and wholesale certificates of deposit at December 31, 2024 is as follows:

 

(In Thousands)

 

 

 

Maturities during the year ended December 31,

 

 

 

2025

 

$

519,303

 

2026

 

 

76,281

 

2027

 

 

79,850

 

2028

 

 

18,102

 

2029

 

 

5,782

 

Thereafter

 

 

1,290

 

 

 

$

700,608

 

 

Wholesale deposits include $515.6 million and $195.1 million of wholesale certificates of deposit and non-reciprocal interest-bearing transaction accounts, respectively, at December 31, 2024, compared to $407.7 million and $50.0 million of wholesale certificates of deposit and non-reciprocal interest-bearing transaction accounts, respectively, at December 31, 2023. The Corporation has entered into derivative contracts hedging a portion of the certificates of deposit included in the 2025 maturities above. As of December 31, 2024, the notional amount of derivatives designated as cash flow hedges totaled $416.3 million with a weighted average remaining maturity of 3.65 years and a weighted average rate of 3.81%.

Certificates of deposit and wholesale deposits denominated in amounts greater than $250,000 were $67.3 million at December 31, 2024 and $120.2 million at December 31, 2023.
v3.25.0.1
FHLB Advances, Other Borrowings and Subordinated Notes and Debentures
 12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
FHLB Advances, Other Borrowings and Subordinated Notes and Debentures Note 10 — FHLB Advances, Other Borrowings and Subordinated Notes and Debentures

The composition of borrowed funds is shown below. Average balances represent year-to-date averages.

 

 

 

December 31, 2024

 

 

December 31, 2023

 

 

 

Balance

 

 

Weighted
Average
Balance

 

 

Weighted
Average
Rate

 

 

Balance

 

 

Weighted
Average
Balance

 

 

Weighted
Average
Rate

 

 

 

(Dollars in Thousands)

 

Federal funds purchased

 

$

—

 

 

$

2

 

 

 

38.40

%

 

$

—

 

 

$

3

 

 

 

5.37

%

FHLB advances

 

 

265,350

 

 

 

282,437

 

 

 

2.73

 

 

 

281,500

 

 

 

351,990

 

 

 

2.52

 

Line of credit

 

 

—

 

 

 

1,229

 

 

 

8.03

 

 

 

—

 

 

 

38

 

 

 

7.26

 

Other borrowings

 

 

10

 

 

 

8

 

 

 

—

 

 

 

20

 

 

 

600

 

 

 

8.33

 

Subordinated notes and debentures

 

 

54,689

 

 

 

49,833

 

 

 

6.36

 

 

 

49,396

 

 

 

38,250

 

 

 

5.16

 

 

 

$

320,049

 

 

$

333,509

 

 

 

3.30

 

 

$

330,916

 

 

$

390,881

 

 

 

2.79

 

 

 

A summary of annual maturities of borrowings at December 31, 2024 is as follows:

 

(In Thousands)

 

 

 

Maturities during the year ended December 31,

 

 

 

2025

 

$

116,410

 

2026

 

 

65,000

 

2027

 

 

10,000

 

2028

 

 

10,450

 

2029

 

 

35,000

 

Thereafter

 

 

83,189

 

 

 

$

320,049

 

 

The Corporation has a $709.8 million FHLB line of credit available for advances which is collateralized as noted below. At December 31, 2024, $444.4 million of this line remained unused. There were $265.4 million of term FHLB advances outstanding at December 31, 2024 with stated fixed interest rates ranging from 1.19% to 4.95% compared to $281.5 million of term FHLB advances outstanding at December 31, 2023 with stated fixed interest rates ranging from 0.50% to 5.58%. The term FHLB advances outstanding at December 31, 2024 are due at various dates through December 2031.

The Corporation is required to maintain as collateral mortgage-related securities, unencumbered first mortgage loans and secured small business loans in its portfolio aggregating at least the amount of outstanding advances from the FHLB. Loans totaling approximately $1.298 billion and $1.172 billion were pledged as collateral at December 31, 2024 and 2023, respectively.

The Corporation has a senior line of credit with a third-party financial institution of $10.5 million. As of December 31, 2024, the line of credit carried an interest rate of SOFR + 2.36% that matured on February 19, 2025 and had certain performance debt covenants of which the Corporation was in compliance. The Corporation pays a commitment fee on this senior line of credit. For the years ended December 31, 2024, 2023, and 2022 the Corporation incurred $13,000 additional interest expense due to this fee. There was no outstanding balance on the line of credit as of December 31, 2024. On February 20, 2025, the credit line was renewed for one additional year with pricing terms of 1-month term SOFR + 2.36% and a maturity date of February 19, 2026.

The Corporation issued new subordinated notes payable as of September 13, 2024. The aggregate principal amount of the newly issued subordinated notes payable was $20.0 million which qualified as Tier 2 capital. The subordinated notes payable bear a fixed interest rate of 7.5% with a maturity date of September 13, 2034. The Corporation may, at its option, redeem the notes payable, in whole or part, at anytime after the fifth anniversary of the issuance. As of August 15, 2024, the $15.0 million subordinated notes payable that bore a fixed interest rate of 5.5% were redeemed, and the remaining unamortized debt issuance cost was accelerated due to the early redemption. As of December 31, 2024, $311,000 of debt issuance costs remain in the subordinated note and debentures payable balance, of which $53,000 is related to the recently issued subordinated debentures.

The Corporation has entered into derivative contracts hedging a portion of the borrowings included in the 2024 maturities above. As of December 31, 2024, the notional amount of derivatives designated as cash flow hedges totaled $68.4 million with a weighted average remaining maturity of 2.30 years and a weighted average rate of 1.98%.
v3.25.0.1
Preferred Stock
 12 Months Ended
Dec. 31, 2024
Equity [Abstract]  
Preferred Stock

Note 11 — Preferred Stock

On March 4, 2022, the Corporation issued 12,500 shares, or $12.5 million in aggregate liquidation preference, of 7.0% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series A, par value $0.01 per share, with a liquidation preference of $1,000 per share (the “Series A Preferred Stock”) in a private placement to institutional investors. The net proceeds received from the issuance of the Series A Preferred Stock were $12.0 million.

The Corporation expects to pay dividends on the Series A Preferred Stock when and if declared by the Board, at a fixed rate of 7.0% per annum, payable quarterly, in arrears, on March 15, June 15, September 15 and December 15 of each year up to, but excluding, March 15, 2027. For each dividend period from and including March 15, 2027, dividends will be paid at a floating rate of Three-Month Term SOFR plus a spread of 539 basis points per annum. During the years ended December 31, 2024 and 2023, the Board of Directors declared an aggregate preferred stock dividend of $875,000. The Series A Preferred Stock is perpetual and has no stated maturity. The Corporation may redeem the Series A Preferred Stock at its option at a redemption price equal to $1,000 per share, plus any declared and unpaid dividends (without regard to any undeclared dividends), subject to regulatory approval, on or after March 15, 2027 or within 90 days following a regulatory capital treatment event, in accordance with the terms of the Series A Preferred Stock.
v3.25.0.1
Regulatory Capital
 12 Months Ended
Dec. 31, 2024
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]  
Regulatory Capital

Note 12 — Regulatory Capital

The Corporation and the Bank are subject to various regulatory capital requirements administered by Federal and Wisconsin banking agencies. Failure to meet minimum capital requirements can result in certain mandatory, and possibly additional discretionary actions on the part of regulators, that if undertaken, could have a direct material effect on the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory practices. The Corporation’s and the Bank’s capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. The Corporation regularly reviews and updates, when appropriate, its capital and liquidity action plans, which is designed to help ensure appropriate capital adequacy, to plan for future capital needs, and to ensure that the Corporation serves as a source of financial strength to the Bank. The Corporation’s and the Bank’s Board and management teams adhere to the appropriate regulatory guidelines on decisions which affect their respective capital positions, including but not limited to, decisions relating to the payment of dividends and increasing indebtedness.

As a bank holding company, the Corporation’s ability to pay dividends is affected by the policies and enforcement powers of the Board of Governors of the Federal Reserve system (the “Federal Reserve”). Federal Reserve guidance urges financial institutions to strongly consider eliminating, deferring, or significantly reducing dividends if: (i) net income available to common shareholders for the past four quarters, net of dividends previously paid during that period, is not sufficient to fully fund the dividend; (ii) the prospective rate of earnings retention is not consistent with the bank holding company’s capital needs and overall current and prospective financial condition; or (iii) the bank holding company will not meet, or is in danger of not meeting, its minimum regulatory capital ratios. Management intends, when appropriate under regulatory guidelines, to consult with the Federal Reserve Bank (“FRB”) of Chicago and provide it with information on the Corporation’s then-current and prospective earnings and capital position in advance of declaring any cash dividends. As a Wisconsin corporation, the Corporation is subject to the limitations of the Wisconsin Business Corporation Law, which prohibits the Corporation from paying dividends if such payment would: (i) render the Corporation unable to pay its debts as they become due in the usual course of business, or (ii) result in the Corporation’s assets being less than the sum of its total liabilities plus the amount needed to satisfy the preferential rights upon dissolution of any shareholders with preferential rights superior to those shareholders receiving the dividend.

The Bank is also subject to certain legal, regulatory, and other restrictions on their ability to pay dividends to the Corporation. As a bank holding company, the payment of dividends by the Bank to the Corporation is one of the sources of funds the Corporation could use to pay dividends, if any, in the future and to make other payments. Future dividend decisions by the Bank and the Corporation will continue to be subject to compliance with various legal, regulatory, and other restrictions as defined from time to time.

Quantitative measures established by regulation to ensure capital adequacy require the Corporation and the Bank to maintain minimum amounts and ratios of Total Common Equity Tier 1 and Tier 1 capital to risk-weighted assets and of Tier 1 capital to adjusted total assets. These risk-based capital requirements presently address credit risk related to both recorded and off-balance sheet commitments and obligations.

In July 2013, the FRB and the FDIC approved the final rules implementing the Basel Committee on Banking Supervision’s capital guidelines for U.S. banks. These rules are applicable to all financial institutions that are subject to minimum capital requirements, including federal and state banks and savings and loan associations, as well as bank and savings and loan holding companies other than “small bank holding companies” (generally non-publicly traded bank holding companies with consolidated assets of less than $1 billion). Under the final rules, minimum requirements increased for both the quantity and quality of capital held by the Corporation. The rules include a new Common Equity Tier 1 capital to risk-weighted assets minimum ratio of 4.5%, raise the minimum ratio of

Tier 1 capital to risk-weighted assets from 4.0% to 6.0%, require a minimum ratio of Total Capital to risk-weighted assets of 8.0%, and require a minimum Tier 1 leverage ratio of 4.0%. The rules also permit banking organizations with less than $15 billion in assets to retain, through a one-time election, the past treatment for accumulated other comprehensive income, which did not affect regulatory capital. The Corporation elected to retain this treatment, which reduces the volatility of regulatory capital ratios. The Corporation also must comply with the 2.5% conservation buffer, which the Corporation met as of December 31, 2024.

As of December 31, 2024, the Corporation’s capital levels exceeded the regulatory minimums and the Bank’s capital levels remained characterized as well capitalized under the regulatory framework. The following tables summarize both the Corporation’s and the Bank’s capital ratios and the ratios required by their federal regulators:

 

 

 

As of December 31, 2024

 

 

 

Actual (1)

 

 

Minimum Required
for Capital
Adequacy Purposes

 

 

For Capital
Adequacy Purposes
Plus Capital
Conservation Buffer

 

 

Minimum Required
to Be Well
Capitalized Under
Prompt Corrective
Action
Requirements

 

 

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

 

 

(Dollars in Thousands)

 

Total capital
   (to risk-weighted assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

$

421,639

 

 

 

12.08

%

$

279,330

 

 

 

8.00

%

$

366,621

 

 

 

10.50

%

 

N/A

 

 

N/A

 

First Business Bank

 

 

417,965

 

 

 

11.97

 

 

 

279,342

 

 

 

8.00

 

 

 

366,636

 

 

 

10.50

 

 

$

349,177

 

 

 

10.00

%

Tier 1 capital
   (to risk-weighted assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

$

329,796

 

 

 

9.45

%

 

$

209,498

 

 

 

6.00

%

 

$

296,788

 

 

 

8.50

%

 

N/A

 

 

N/A

 

First Business Bank

 

 

380,811

 

 

 

10.91

 

 

 

209,506

 

 

 

6.00

 

 

 

296,801

 

 

 

8.50

 

 

$

279,342

 

 

 

8.00

%

Common equity tier 1 capital
   (to risk-weighted assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

$

317,804

 

 

 

9.10

%

 

$

157,123

 

 

 

4.50

%

 

$

244,414

 

 

 

7.00

%

 

N/A

 

 

N/A

 

First Business Bank

 

 

380,811

 

 

 

10.91

 

 

 

157,130

 

 

 

4.50

 

 

 

244,424

 

 

 

7.00

 

 

$

226,965

 

 

 

6.50

%

Tier 1 leverage capital
   (to adjusted assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

$

329,796

 

 

 

8.78

%

 

$

150,256

 

 

 

4.00

%

 

$

150,256

 

 

 

4.00

%

 

N/A

 

 

N/A

 

First Business Bank

 

 

380,811

 

 

 

10.14

 

 

 

150,207

 

 

 

4.00

 

 

 

150,207

 

 

 

4.00

 

 

$

187,759

 

 

 

5.00

%

 

 

 

 

As of December 31, 2023

 

 

 

Actual (1)

 

 

Minimum Required
for Capital
Adequacy Purposes

 

 

For Capital
Adequacy Purposes
Plus Capital
Conservation Buffer

 

 

Minimum Required
to Be Well
Capitalized Under
Prompt Corrective
Action
Requirements

 

 

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

 

 

(Dollars in Thousands)

 

Total capital
   (to risk-weighted assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

$

375,440

 

 

 

11.19

%

 

$

268,500

 

 

 

8.00

%

 

$

352,406

 

 

 

10.50

%

 

N/A

 

 

N/A

 

First Business Bank

 

 

376,310

 

 

 

11.21

 

 

 

268,595

 

 

 

8.00

 

 

 

352,531

 

 

 

10.50

 

 

$

335,744

 

 

 

10.00

%

Tier 1 capital
   (to risk-weighted assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

$

293,338

 

 

 

8.74

%

 

$

201,375

 

 

 

6.00

%

 

$

285,281

 

 

 

8.50

%

 

N/A

 

 

N/A

 

First Business Bank

 

 

343,604

 

 

 

10.23

 

 

 

201,446

 

 

 

6.00

 

 

 

285,382

 

 

 

8.50

 

 

$

268,595

 

 

 

8.00

%

Common equity tier 1 capital
   (to risk-weighted assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

$

281,346

 

 

 

8.38

%

 

$

151,031

 

 

 

4.50

%

 

$

234,937

 

 

 

7.00

%

 

N/A

 

 

N/A

 

First Business Bank

 

 

343,604

 

 

 

10.23

 

 

 

151,085

 

 

 

4.50

 

 

 

235,021

 

 

 

7.00

 

 

$

218,233

 

 

 

6.50

%

Tier 1 leverage capital
   (to adjusted assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

$

293,338

 

 

 

8.43

%

 

$

139,145

 

 

 

4.00

%

 

$

139,145

 

 

 

4.00

%

 

N/A

 

 

N/A

 

First Business Bank

 

 

343,604

 

 

 

9.87

 

 

 

139,262

 

 

 

4.00

 

 

 

139,262

 

 

 

4.00

 

 

$

174,077

 

 

 

5.00

%

 

(1)
2024 and 2023 capital amounts include $676,000 and $1.0 million, respectively, of additional stockholders’ equity as elected by the Corporation and permitted by federal banking regulatory agencies related to the adoption of ASC 326. Risk-weighted assets were also adjusted accordingly.

The following table reconciles stockholders’ equity to federal regulatory capital at December 31, 2024 and 2023, respectively:

 

 

As of December 31,

 

 

2024

 

 

2023

 

 

(In Thousands)

 

Stockholders’ equity of the Corporation

 

$

328,589

 

 

$

289,588

 

Net unrealized and accumulated losses on specific items

 

 

11,425

 

 

 

13,717

 

Disallowed servicing assets

 

 

(514

)

 

 

(614

)

Disallowed goodwill and other intangibles

 

 

(10,380

)

 

 

(10,368

)

ASC 326 Phase-in

 

 

676

 

 

 

1,015

 

Tier 1 capital

 

 

329,796

 

 

 

293,338

 

Allowable general valuation allowances and subordinated
   debt

 

 

91,843

 

 

 

82,102

 

Total capital

 

$

421,639

 

 

$

375,440

 
v3.25.0.1
Earnings Per Common Share
 12 Months Ended
Dec. 31, 2024
Earnings Per Share [Abstract]  
Earnings Per Common Share

Note 13 — Earnings per Common Share

Earnings per common share are computed using the two-class method. Basic earnings per common share are computed by dividing net income allocated to common shares by the weighted-average number of shares outstanding during the applicable period, excluding outstanding participating securities. Participating securities include unvested restricted shares. Unvested restricted shares are considered participating securities because holders of these securities receive non-forfeitable dividends, or dividend equivalents, at the same rate as holders of the Corporation’s common stock. Diluted earnings per share are computed by dividing net income allocated to common shares adjusted for reallocation of undistributed earnings of unvested restricted shares by the weighted average number of

shares determined for the basic earnings per common share computation plus the dilutive effect of common stock equivalents using the treasury stock method.

 

 

 

For the Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

 

 

(Dollars in Thousands, Except Share Data)

 

Basic earnings per common share

 

 

 

 

 

 

 

 

 

Net income

 

$

44,245

 

 

$

37,027

 

 

$

40,858

 

Less: preferred stock dividends

 

 

875

 

 

 

875

 

 

 

683

 

Less: earnings allocated to participating securities

 

 

1,033

 

 

 

938

 

 

 

1,106

 

Basic earnings allocated to common shareholders

 

$

42,337

 

 

$

35,214

 

 

$

39,069

 

Weighted-average common shares outstanding,
   excluding participating securities

 

 

8,148,259

 

 

 

8,131,251

 

 

 

8,226,943

 

Basic earnings per common share

 

$

5.20

 

 

$

4.33

 

 

$

4.75

 

Diluted earnings per common share

 

 

 

 

 

 

 

 

 

Earnings allocated to common shareholders, diluted

 

$

42,337

 

 

$

35,214

 

 

$

39,069

 

Weighted-average diluted common shares outstanding,
   excluding participating securities

 

 

8,148,259

 

 

 

8,131,251

 

 

 

8,226,943

 

Diluted earnings per common share

 

$

5.20

 

 

$

4.33

 

 

$

4.75

 
v3.25.0.1
Share-Based Compensation
 12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Share-Based Compensation

Note 14 — Share-Based Compensation

The Corporation initially adopted the 2019 Equity Incentive Plan (the “Plan”) during the quarter ended June 30, 2019. The Plan is administered by the Compensation Committee of the Board of Directors (the “Board”) of the Corporation and provides for the grant of equity ownership opportunities through incentive stock options and nonqualified stock options, restricted stock, restricted stock units, dividend equivalent units, and any other type of award permitted by the Plan. As of December 31, 2024, 254,729 shares were available for future grants under the Plan, as amended. Shares covered by awards that expire, terminate, or lapse will again be available for the grant of awards under the Plan.

Restricted Stock

Under the Plan, the Corporation may grant restricted stock awards (“RSA”), restricted stock units (“RSU”), and other stock-based awards to plan participants, subject to forfeiture upon the occurrence of certain events until the dates specified in the participant’s award agreement. While restricted stock is subject to forfeiture, RSA participants may exercise full voting rights and will receive all dividends and other distributions paid with respect to the restricted shares. RSUs do not have voting rights. RSUs granted prior to 2023 are provided dividend equivalents concurrent with dividends paid to shareholders while RSUs granted in 2023 and after will accrue dividend equivalents payable upon vesting. The restricted stock granted under the Plan is typically subject to a vesting period. Compensation expense for restricted stock is recognized over the requisite service period of generally three or four years for the entire award on a straight-line basis. Upon vesting of restricted stock, the benefit of tax deductions in excess of recognized compensation expense is reflected as an income tax benefit in the Consolidated Statements of Income.

The Corporation may also issue performance-based restricted stock units (“PRSU”). Vesting of the PRSU will be measured on the relative Total Shareholder Return (“TSR”) and relative Return on Average Equity (“ROAE”) for issuances prior to 2023 or Return on Average Tangible Common Equity (“ROATCE”) for issuances after 2022, and will cliff-vest after a three-year measurement period based on the Corporation’s TSR performance and ROAE or ROATCE performance compared to a broad peer group of over 100 banks. At the end of the performance period, the number of actual shares to be awarded varies between 0% and 200% of target amounts. The restricted stock awards and units issued to executive officers will vest ratably over a three-year period. Compensation expense is recognized for PRSU over the requisite service and performance period of generally three years for the entire expected award on a straight-line basis. The compensation expense for the awards expected to vest for the percentage of performance-based restricted stock units subject to the ROAE or ROATCE metric will be adjusted if there is a change in the expectation of ROAE or ROATCE. The compensation expense for the awards expected to vest for the percentage of PRSU subject to the TSR metric are never adjusted and are amortized utilizing the accounting fair value provided using a Monte Carlo pricing model.

Restricted stock activity for the year ended December 31, 2023 and the year ended December 31, 2024 was as follows:

 

 

 

RSA

 

 

Weighted
Average
Grant Price

 

 

PRSU

 

 

Weighted
Average
Grant Price

 

 

RSU

 

 

Weighted
Average
Grant Price

 

 

Total

 

 

Weighted
Average
Grant Price

 

Nonvested balance as of
   January 1, 2022

 

 

141,617

 

 

$

23.06

 

 

 

63,120

 

 

$

28.20

 

 

 

5,052

 

 

$

23.56

 

 

 

209,789

 

 

$

24.62

 

Granted (1)

 

 

62,560

 

 

 

34.04

 

 

 

37,335

 

 

 

24.71

 

 

 

3,115

 

 

 

27.95

 

 

 

103,010

 

 

 

30.47

 

Vested

 

 

(62,353

)

 

 

23.21

 

 

 

(43,020

)

 

 

18.91

 

 

 

(2,062

)

 

 

23.20

 

 

 

(107,435

)

 

 

21.49

 

Forfeited

 

 

(8,507

)

 

 

26.15

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(8,507

)

 

 

26.15

 

Nonvested balance as of
   December 31, 2022

 

 

133,317

 

 

$

27.95

 

 

 

57,435

 

 

$

32.89

 

 

 

6,105

 

 

$

25.92

 

 

 

196,857

 

 

$

29.32

 

Granted (1)

 

 

—

 

 

 

—

 

 

 

34,840

 

 

 

35.79

 

 

 

54,955

 

 

 

34.43

 

 

 

89,795

 

 

 

34.96

 

Vested

 

 

(56,931

)

 

 

27.03

 

 

 

(36,120

)

 

 

31.31

 

 

 

(3,253

)

 

 

26.06

 

 

 

(96,304

)

 

 

28.60

 

Forfeited

 

 

(4,435

)

 

 

30.20

 

 

 

—

 

 

 

—

 

 

 

(820

)

 

 

36.42

 

 

 

(5,255

)

 

 

31.17

 

Nonvested balance as of
   December 31, 2023

 

 

71,951

 

 

 

28.53

 

 

 

56,155

 

 

 

35.70

 

 

 

56,987

 

 

 

33.97

 

 

 

185,093

 

 

 

32.38

 

Granted (1)

 

 

—

 

 

 

—

 

 

 

27,614

 

 

 

34.76

 

 

 

65,717

 

 

 

30.43

 

 

 

93,331

 

 

 

31.71

 

Vested

 

 

(35,131

)

 

 

26.86

 

 

 

(34,139

)

 

 

25.43

 

 

 

(33,716

)

 

 

21.25

 

 

 

(102,986

)

 

 

24.57

 

Forfeited

 

 

(7,924

)

 

 

29.75

 

 

 

—

 

 

 

—

 

 

 

(8,827

)

 

 

36.25

 

 

 

(16,751

)

 

 

33.18

 

Nonvested balance as of
   December 31, 2024

 

 

28,896

 

 

$

30.09

 

 

 

49,630

 

 

$

42.24

 

 

 

80,161

 

 

$

36.04

 

 

 

158,687

 

 

$

36.77

 

Unrecognized compensation
   cost (in thousands)

 

$

416

 

 

 

 

 

$

1,037

 

 

 

 

 

$

2,192

 

 

 

 

 

$

3,645

 

 

 

 

Weighted average remaining
   recognition period (in years)

 

 

1.07

 

 

 

 

 

 

1.69

 

 

 

 

 

 

2.55

 

 

 

 

 

 

2.13

 

 

 

 

 

(1)
The number of restricted shares/units shown includes the shares that would be granted if the target level of performance is achieved related to the PRSU. The number of shares actually issued may vary. During the year ended December 31, 2024, an additional 10,589 were issued related to actual performance results of previously granted awards.

Employee Stock Purchase Plan

The Corporation is authorized to issue up to 250,000 shares of common stock under the employee stock purchase plan ("ESPP"). The plan qualifies as an employee stock purchase plan under section 423 of the Internal Revenue Code of 1986. Under the ESPP, eligible employees may enroll in a three month offer period that begins January, April, July, and October of each year. Employees may elect to purchase a limited number of shares of the Corporation's common stock at 90% of the fair market value on the last day of the offering period. The ESPP is treated as a compensatory item for purposes of share-based compensation expense.

During the year ended December 31, 2024, the Corporation issued 3,832 shares of common stock under the ESPP. As of December 31, 2024, 226,806 shares remained available for issuance under the ESPP.

Share-based compensation expense related to restricted stock and ESPP included in the Consolidated Statements of Income was as follows:

 

 

 

For the Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

 

 

(In Thousands)

 

Share-based compensation expense

 

$

2,785

 

 

$

2,977

 

 

$

2,584

 
v3.25.0.1
Employee Benefit Plans
 12 Months Ended
Dec. 31, 2024
Retirement Benefits [Abstract]  
Employee Benefit Plans

Note 15 — Employee Benefit Plans

The Corporation maintains a contributory 401(k) defined contribution plan covering substantially all employees. The Corporation matches 100% of amounts contributed by each participating employee, up to 3% of the employee’s compensation. The Corporation may also make discretionary profit sharing contributions up to an additional 6% of salary. Contributions are expensed in the period incurred and recorded in compensation expense in the Consolidated Statements of Income. The Corporation made a matching contribution of 3% to all eligible employees which totaled $1.2 million, $1.2 million, and $1.1 million for the years ended December 31, 2024, 2023, and 2022, respectively. Discretionary profit sharing contributions for substantially all employees of 4.34%, or $1.7 million, 5.9%, or $2.1 million, and 5.2%, or $1.6 million, were made in 2024, 2023, and 2022, respectively.

As of December 31, 2024, 2023, and 2022, the Corporation had a deferred compensation plan under which it provided contributions to supplement the retirement income of one executive. Under the terms of the plan, benefits to be received are generally payable within six months of the date of the termination of employment with the Corporation. The expense associated with the deferred compensation plan for the years ended December 31, 2024, 2023, and 2022 was $523,000, $493,000, and $382,000, respectively. The deferred compensation liability under the remaining plan of $3.3 million and $2.8 million at December 31, 2024 and 2023, respectively, is included in accrued interest payable and other liabilities on the Consolidated Balance Sheets.

The Corporation owned life insurance policies on the life of the executive covered by the deferred compensation plan, which had cash surrender values and death benefits of approximately $3.2 million and $6.2 million, respectively, at December 31, 2024 and cash surrender values and death benefits of approximately $3.1 million and $6.2 million, respectively, at December 31, 2023. The remaining balance of the cash surrender value of bank-owned life insurance of $54.0 million and $52.4 million as of December 31, 2024 and 2023, respectively, is related to policies on a number of then-qualified individuals affiliated with the Bank.
v3.25.0.1
Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes

Note 16 — Income Taxes

Income tax expense consists of the following:

 

 

For the Year Ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

 

(In Thousands)

 

Current:

 

 

 

 

 

 

 

 

 

Federal

 

$

8,783

 

 

$

7,759

 

 

$

9,174

 

State

 

 

1,635

 

 

 

233

 

 

 

2,987

 

Current tax expense

 

 

10,418

 

 

 

7,992

 

 

 

12,161

 

Deferred:

 

 

 

 

 

 

 

 

 

Federal

 

 

(1,263

)

 

 

(716

)

 

 

(733

)

State

 

 

(2,250

)

 

 

2,836

 

 

 

(42

)

Deferred tax (benefit) expense

 

 

(3,513

)

 

 

2,120

 

 

 

(775

)

Total income tax expense

 

$

6,905

 

 

$

10,112

 

 

$

11,386

 

 

Deferred income tax assets and liabilities reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their tax basis. Deferred tax assets and liabilities are measured using enacted tax rates to apply to taxable income in the period in which the temporary differences are expected to be recovered or settled. Net deferred tax assets are included in accrued interest receivable and other assets in the Consolidated Balance Sheets.

The significant components of the Corporation’s deferred tax assets and liabilities were as follows:

 

 

December 31, 2024

 

 

December 31, 2023

 

 

(In Thousands)

 

Deferred tax assets:

 

 

 

 

 

 

Allowance for credit losses

 

$

9,820

 

 

$

8,730

 

Deferred compensation

 

 

2,511

 

 

 

2,094

 

State net operating loss carryforwards

 

 

687

 

 

 

875

 

Write-down of repossessed assets

 

 

31

 

 

 

10

 

Non-accrual loan interest

 

 

222

 

 

 

95

 

Capital loss carryforwards

 

 

—

 

 

 

22

 

Unrealized losses on securities

 

 

4,136

 

 

 

4,715

 

Share-based compensation

 

 

761

 

 

 

788

 

Other

 

 

154

 

 

 

284

 

Total deferred tax assets before valuation allowance

 

 

18,322

 

 

 

17,613

 

Valuation allowance

 

 

(1,568

)

 

 

(3,339

)

Total deferred tax assets

 

 

16,754

 

 

 

14,274

 

Deferred tax liabilities:

 

 

 

 

 

 

Leasing and fixed asset activities

 

 

1,361

 

 

 

1,854

 

Loan servicing asset

 

 

328

 

 

 

381

 

Other

 

 

2,466

 

 

 

2,531

 

Total deferred tax liabilities

 

 

4,155

 

 

 

4,766

 

Net deferred tax asset

 

$

12,599

 

 

$

9,508

 

 

Realization of the deferred tax assets is dependent upon the Corporation generating sufficient taxable earnings prior to the expiration of net operating loss carryforwards. Management performs an analysis to determine if a valuation allowance against deferred tax assets is required in accordance with U.S. GAAP.

 

For Wisconsin state deferred tax assets, management determined that it was probable that some or all of the deferred tax assets would not be utilized within the applicable carry-forward period. The primary driver is the 2023 Wisconsin Act 19 which contains a provision that provides financial institutions with a state tax-exemption for interest, fees, and penalties earned on qualifying small-business loans. In 2024, management recorded a $1.7 million partial release of a state deferred tax asset valuation allowance due to changes in projected taxable income based on revised state taxation guidance and 2023 state tax return actual results. As of December 31, 2024, the state deferred tax valuation allowance was $1.6 million, reducing our Wisconsin deferred tax assets to $2.1 million. As of December 31, 2023, the state deferred tax valuation allowance was $3.3 million, reducing our Wisconsin deferred tax assets to $0. The Corporation had state net operating loss carryforwards of approximately $5.7 million and $16.4 million at December 31, 2024 and 2023, respectively.

 

For federal and other U.S. states, management determined that it was not required to establish a valuation allowance against the December 31, 2024 or 2023 deferred tax assets in accordance with U.S. GAAP since it was more likely than not that the deferred tax assets will be fully utilized in future periods.

 

 

The provision for income taxes differs from that computed at the federal statutory corporate tax rate as follows:

 

 

Year Ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

 

(Dollars in Thousands)

 

Income before income tax expense

 

$

51,150

 

 

$

47,139

 

 

$

52,244

 

Tax expense at statutory federal rate of 21% applied to
   income before income tax expense

 

$

10,741

 

 

$

9,899

 

 

$

10,971

 

State income tax, net of federal effect

 

 

1,441

 

 

 

(52

)

 

 

2,337

 

Tax-exempt security and loan income, net of TEFRA
   adjustments

 

 

(1,201

)

 

 

(856

)

 

 

(704

)

Change in valuation allowance

 

 

(1,888

)

 

 

3,349

 

 

 

—

 

Bank-owned life insurance

 

 

(346

)

 

 

(313

)

 

 

(468

)

Tax credits, net

 

 

(1,787

)

 

 

(1,045

)

 

 

(338

)

Share-based compensation

 

 

(251

)

 

 

(159

)

 

 

(392

)

Section 162(m) limitation

 

 

106

 

 

 

123

 

 

 

118

 

Other

 

 

90

 

 

 

(834

)

 

 

(138

)

Total income tax expense

 

$

6,905

 

 

$

10,112

 

 

$

11,386

 

Effective tax rate

 

 

13.50

%

 

 

21.45

%

 

 

21.79

%

 

There were no uncertain tax positions outstanding as of December 31, 2024 and 2023. As of December 31, 2024, tax years remaining open for the State of Wisconsin tax were 2020 through 2023. Federal tax years that remained open were 2021 through 2023. As of December 31, 2024, there were also no unrecognized tax benefits that are expected to significantly increase or decrease within the next twelve months.
v3.25.0.1
Derivative Financial Instruments
 12 Months Ended
Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments

Note 17 — Derivative Financial Instruments

The Corporation offers interest rate swap products directly to qualified commercial borrowers. The Corporation economically hedges client derivative transactions by entering into offsetting interest rate swap contracts executed with a third party. Derivative transactions executed as part of this program are not considered hedging instruments and are marked-to-market through earnings each period. The derivative contracts have mirror-image terms, which results in the positions’ changes in fair value offsetting through earnings each period. The credit risk and risk of non-performance embedded in the fair value calculations is different between the dealer counterparties and the commercial borrowers which may result in a difference in the changes in the fair value of the mirror-image swaps. The Corporation incorporates credit valuation adjustments to appropriately reflect both its own non-performance risk and the counterparty’s risk in the fair value measurements. When evaluating the fair value of its derivative contracts for the effects of non-performance and credit risk, the Corporation considered the impact of netting and any applicable credit enhancements such as collateral postings, thresholds, and guarantees. As of December 31, 2024 and 2023, the credit valuation allowance was $149,000 and $117,000, respectively.

The Corporation receives fixed rates and pays floating rates based upon designated benchmark interest rates used on the swaps with commercial borrowers. Commercial borrower swaps are completed independently with each borrower and are not subject to master netting arrangements. The Corporation pays fixed rates and receives floating rates based upon designated benchmark interest rates used on the swaps with dealer counterparties. Dealer counterparty swaps are subject to master netting agreements among the contracts within our Bank and are reported on the Consolidated Balance Sheet. The gross amount of dealer counterparty swaps, without regard to the enforceable master netting agreement, was a gross derivative asset of $56.6 million and gross derivative liability of $2.0 million as of December 31, 2024.

All changes in fair value of these instruments are recorded in other non-interest income. Given the mirror-image terms of the outstanding derivative portfolio, the change in fair value for the years ended December 31, 2024, 2023, and 2022 had an insignificant impact on the Consolidated Statements of Income.

The Corporation also enters into interest rate swaps to manage interest rate risk and reduce the cost of match-funding certain long-term fixed rate loans. These derivative contracts involve the receipt of floating rate interest from a counterparty in exchange for the Corporation making fixed-rate payments over the life of the agreement, without the exchange of the underlying notional value. The instruments are designated as cash flow hedges as the receipt of floating rate interest from the counterparty is used to manage interest rate risk related to cash outflows attributable to future wholesale deposit or short-term FHLB advance borrowings. The change in the fair value of these hedging instruments is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged transactions affect earnings. A pre-tax unrealized gain of $4.7 million and $8.5 million was recognized in other comprehensive income for the years ended December 31, 2024 and 2022, respectively, and there were no ineffective portions of the hedges. A pre-tax unrealized loss of $3.5 million was recognized in other comprehensive income for the year ended December 31, 2023, and there were no ineffective portions of the hedges.

The Corporation also enters into interest rate swaps to mitigate market value volatility on certain long-term fixed securities. The objective of the hedge is to protect the Corporation against changes in fair value due to changes in benchmark interest rates. The instruments are designated as fair value hedges as the changes in the fair value of the interest rate swap are expected to offset changes in the fair value of the hedged item attributable to changes in the SOFR swap rate, the designated benchmark interest rate. These derivative contracts involve the receipt of floating rate interest from a counterparty in exchange for the Corporation making fixed-rate payments over the life of the agreement, without the exchange of the underlying notional value. The change in the fair value of these hedging instruments is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged transactions affect earnings. A pre-tax unrealized gain of $390,000, $22,000, and $602,000 was recognized in other comprehensive income for the years ended December 31, 2024, 2023, and 2022, respectively, and there was no ineffective portion of these hedges.

 

 

 

As of December 31, 2024

 

 

 

Number of
Instruments

 

 

Notional
Amount

 

 

Weighted
Average
Maturity
(In Years)

 

 

Fair
Value

 

 

 

(Dollars in Thousands)

 

Included in Derivative assets

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives not designated as hedging instruments

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swap agreements on loans with commercial
   loan clients

 

 

20

 

 

$

232,488

 

 

 

4.55

 

 

$

2,015

 

Interest rate swap agreements on loans with third-party
   counterparties

 

 

106

 

 

 

1,022,365

 

 

 

5.24

 

 

 

54,544

 

Derivatives designated as hedging instruments

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swap related to AFS securities

 

 

11

 

 

$

12,500

 

 

 

7.28

 

 

$

1,014

 

Interest rate swap related to wholesale funding

 

 

36

 

 

 

384,655

 

 

 

3.95

 

 

 

8,189

 

Included in Derivative liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives not designated as hedging instruments

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swap agreements on loans with commercial
   loan clients

 

 

86

 

 

$

789,877

 

 

 

5.44

 

 

$

56,559

 

Derivatives designated as hedging instruments

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swap related to wholesale funding

 

 

10

 

 

$

100,000

 

 

 

1.55

 

 

$

509

 

 

 

 

As of December 31, 2023

 

 

 

Number of
Instruments

 

 

Notional
Amount

 

 

Weighted
Average
Maturity
(In Years)

 

 

Fair
Value

 

 

 

(Dollars in Thousands)

 

Included in Derivative assets

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives not designated as hedging instruments

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swap agreements on loans with commercial
   loan clients

 

 

25

 

 

$

249,454

 

 

 

6.33

 

 

$

7,904

 

Interest rate swap agreements on loans with third-party
   counter parties

 

 

106

 

 

 

939,156

 

 

 

6.06

 

 

 

43,234

 

Derivatives designated as hedging instruments

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swap related to AFS securities

 

 

11

 

 

$

12,500

 

 

 

8.28

 

 

$

624

 

Interest rate swap related to wholesale funding

 

 

9

 

 

 

96,400

 

 

 

2.47

 

 

 

3,835

 

Included in Derivative liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives not designated as hedging instruments

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swap agreements on loans with commercial
   loan clients

 

 

81

 

 

$

689,702

 

 

 

5.96

 

 

$

51,138

 

Derivatives designated as hedging instruments

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swap related to wholesale funding

 

 

29

 

 

$

306,255

 

 

 

3.89

 

 

$

811

 
v3.25.0.1
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

Note 18 — Commitments and Contingencies

The Bank is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of clients. These financial instruments include commitments to extend credit and standby letters of credit and involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the Consolidated Financial Statements. The contract amounts reflect the extent of involvement the Bank has in these particular classes of financial instruments.

In the event of non-performance, the Bank’s exposure to credit loss for commitments to extend credit and standby letters of credit is represented by the contractual amount of these instruments. The Bank uses the same credit policies in making commitments and conditional obligations as they do for instruments reflected in the Consolidated Financial Statements. An accrual for credit losses on financial instruments with off-balance sheet risk would be recorded separate from any valuation account related to any such recognized financial instrument. As of December 31, 2024 and 2023, there were no accrued credit losses for financial instruments with off-balance sheet risk.

Financial instruments whose contract amounts represent potential credit risk were as follows:

 

 

 

At December 31,

 

 

 

2024

 

 

2023

 

 

 

(In Thousands)

 

Commitments to extend credit, primarily commercial loans

 

$

1,046,598

 

 

$

1,198,031

 

Standby letters of credit

 

 

17,276

 

 

 

17,938

 

Commitments to extend credit are agreements to lend to a client as long as there is no violation of any condition in the contract. Commitments generally have fixed expiration dates or other termination clauses and may have a fixed interest rate or a rate which varies with the prime rate or other market indices and may require payment of a fee. Since some commitments expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements of the Bank. The Bank evaluates the creditworthiness of each client on a case-by-case basis and generally extends credit only on a secured basis. Collateral obtained varies but consists primarily of commercial real estate, accounts receivable, inventory, equipment, and securities. There is generally no market for commercial loan commitments, the fair value of which would approximate the present value of any fees expected to be received as a result of the commitment. These are not considered to be material to the financial statements.

Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of a client to a third party. Generally, standby letters of credit expire within one year and are collateralized by accounts receivable, equipment, inventory, and commercial properties. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan

facilities to clients. The fair value of standby letters of credit is recorded as a liability when the standby letter of credit is issued. The fair value has been estimated to approximate the fees received by the Bank for issuance. The fees are recorded into income and the fair value of the guarantee is decreased ratably over the term of the standby letter of credit.

The Corporation sells the guaranteed portions of SBA 7(a) and 504 loans, as well as participation interests in other, non-SBA originated, loans to third parties. The Corporation has a continuing involvement in each of the transferred lending arrangements by way of relationship management and servicing the loans, as well as being subject to normal and customary requirements of the SBA loan program and standard representations and warranties related to sold amounts. In the event of a loss resulting from default and a determination by the SBA that there is a deficiency in the manner in which the loan was originated, funded, or serviced by the Corporation, the SBA may require the Corporation to repurchase the loan, deny its liability under the guaranty, reduce the amount of the guaranty, or, if it has already paid under the guaranty, seek recovery of the principal loss related to the deficiency from the Corporation. The Corporation must comply with applicable SBA regulations in order to maintain the guaranty. In addition, the Corporation retains the option to repurchase the sold guaranteed portion of an SBA loan if the loan defaults.

Management has assessed estimated losses inherent in the outstanding guaranteed portions of SBA loans sold in accordance with ASC 450, Contingencies, and determined a recourse reserve based on the probability of future losses for these loans to be $645,000 and $955,000 at December 31, 2024 and 2023, respectively, which is reported in accrued interest payable and other liabilities on the Consolidated Balance Sheets.

The summary of the activity in the SBA recourse reserve is as follows:

 

 

 

As of and for the Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

 

(In Thousands)

 

Balance at the beginning of the period

 

$

955

 

 

$

441

 

SBA recourse

 

 

(104

)

 

 

775

 

Charge-offs, net

 

 

(206

)

 

 

(261

)

Balance at the end of the period

 

$

645

 

 

$

955

 

In the normal course of business, various legal proceedings involving the Corporation are pending. Management, based upon advice from legal counsel, does not anticipate any significant losses as a result of these actions. Management believes that any liability arising from any such proceedings currently existing or threatened will not have a material adverse effect on the Corporation’s financial position, results of operations, and cash flows.
v3.25.0.1
Fair Value Disclosures
 12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Fair Value Disclosures

Note 19 — Fair Value Disclosures

The Corporation determines the fair values of its financial instruments based on the fair value hierarchy established in ASC Topic 820, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Fair value is defined as the price that would be received in an orderly transaction that is not a forced liquidation or distressed sale at the measurement date and is based on exit prices. Fair value includes assumptions about risk, such as nonperformance risk in liability fair values, and is a market-based measurement, not an entity-specific measurement. The standard describes three levels of inputs that may be used to measure fair value.

Level 1 — Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Corporation has the ability to access at the measurement date.

Level 2 — Level 2 inputs are inputs, other than quoted prices included with Level 1, that are observable for the asset or liability either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 — Level 3 inputs are supported by little or no market activity and are significant to the fair value of the assets or liabilities.

In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Corporation’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability.

Assets and liabilities measured at fair value on a recurring basis, segregated by fair value hierarchy level, are summarized below:

 

 

 

December 31, 2024

 

 

 

Fair Value Measurements Using

 

 

 

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

(In Thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Securities available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasuries

 

$

—

 

 

$

4,718

 

 

$

—

 

 

$

4,718

 

U.S. government agency securities - government-
   sponsored enterprises

 

 

—

 

 

 

3,153

 

 

 

—

 

 

 

3,153

 

Municipal securities

 

 

—

 

 

 

34,861

 

 

 

—

 

 

 

34,861

 

Residential mortgage-backed securities - government
   issued

 

 

—

 

 

 

123,223

 

 

 

—

 

 

 

123,223

 

Residential mortgage-backed securities - government-
   sponsored enterprises

 

 

—

 

 

 

134,765

 

 

 

—

 

 

 

134,765

 

Commercial mortgage-backed securities - government
   issued

 

 

—

 

 

 

2,224

 

 

 

—

 

 

 

2,224

 

Commercial mortgage-backed securities - government-
   sponsored enterprises

 

 

—

 

 

 

38,448

 

 

 

—

 

 

 

38,448

 

Interest rate swaps

 

 

—

 

 

 

65,762

 

 

 

—

 

 

 

65,762

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swaps

 

 

—

 

 

 

57,068

 

 

 

—

 

 

 

57,068

 

 

 

 

December 31, 2023

 

 

 

Fair Value Measurements Using

 

 

 

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

(In Thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Securities available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasuries

 

$

—

 

 

$

13,776

 

 

$

—

 

 

$

13,776

 

U.S. government agency securities - government-
   sponsored enterprises

 

 

—

 

 

 

27,566

 

 

 

—

 

 

 

27,566

 

Municipal securities

 

 

—

 

 

 

35,881

 

 

 

—

 

 

 

35,881

 

Residential mortgage-backed securities - government
   issued

 

 

—

 

 

 

68,056

 

 

 

—

 

 

 

68,056

 

Residential mortgage-backed securities - government-
   sponsored enterprises

 

 

—

 

 

 

120,833

 

 

 

—

 

 

 

120,833

 

Commercial mortgage-backed securities - government
   issued

 

 

—

 

 

 

2,525

 

 

 

—

 

 

 

2,525

 

Commercial mortgage-backed securities - government-
   sponsored enterprises

 

 

—

 

 

 

28,369

 

 

 

—

 

 

 

28,369

 

Interest rate swaps

 

 

—

 

 

 

55,597

 

 

 

—

 

 

 

55,597

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swaps

 

 

—

 

 

 

51,949

 

 

 

—

 

 

 

51,949

 

 

For assets and liabilities measured at fair value on a recurring basis, there were no transfers between the levels during the years ended December 31, 2024 and 2023 related to the above measurements.

Assets and liabilities measured at fair value on a non-recurring basis, segregated by fair value hierarchy are summarized below:

 

 

 

December 31, 2024

 

 

 

Fair Value Measurements Using

 

 

 

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

(In Thousands)

 

Collateral-dependent loans

 

$

—

 

 

$

—

 

 

$

7,506

 

 

$

7,506

 

Repossessed assets

 

 

—

 

 

 

—

 

 

 

51

 

 

 

51

 

Loan servicing rights

 

 

—

 

 

 

—

 

 

 

1,245

 

 

 

1,245

 

 

 

 

December 31, 2023

 

 

 

Fair Value Measurements Using

 

 

 

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

(In Thousands)

 

Collateral-dependent loans

 

$

—

 

 

$

—

 

 

$

4,917

 

 

$

4,917

 

Repossessed assets

 

 

—

 

 

 

—

 

 

 

247

 

 

 

247

 

Loan servicing rights

 

 

—

 

 

 

—

 

 

 

1,356

 

 

 

1,356

 

 

Collateral-dependent loans were written down to the fair value of their underlying collateral less costs to sell of $7.5 million and $4.9 million at December 31, 2024 and December 31, 2023, respectively, through the establishment of specific reserves or by recording charge-offs when the carrying value exceeded the fair value of the underlying collateral of individually evaluated loans. Valuation techniques consistent with the market approach, income approach, or cost approach were used to measure fair value. These techniques included observable inputs for the collateral dependent loans being evaluated, such as current appraisals, recent sales of similar assets, or other observable market data, and unobservable inputs, typically when discounts are applied to appraisal values to adjust such values to current market conditions or to reflect net realizable values. The quantification of unobservable inputs for Level 3 individually evaluated loan values range from 13% - 100% as of the measurement date of December 31, 2024. The weighted average of those unobservable inputs was 36%. The majority of the individually evaluated loans are considered collateral dependent loans or are supported by an SBA guaranty.

Repossessed assets are measured and reported at fair value through a charge-off to the allowance for credit losses, if deemed necessary. The fair value of a repossessed asset, upon initial recognition, is estimated using a market approach or based on observable market data, such as a current appraisal, recent sale price of similar assets, or based upon assumptions specific to the individual property or equipment, such as management applied discounts used to further reduce values to a net realizable value when observable inputs become stale.

Loan servicing rights represent the asset retained upon sale of the guaranteed portion of certain SBA loans. When SBA loans are sold, servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. The servicing rights are subsequently measured using the amortization method, which requires amortization into interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans.

The Corporation periodically reviews this portfolio for impairment and engages a third-party valuation firm to assess the fair value of the overall servicing rights portfolio. Loan servicing rights do not trade in an active, open market with readily observable prices. While sales of loan servicing rights do occur, the precise terms and conditions typically are not readily available to allow for a “quoted price for similar assets” comparison. Accordingly, the Corporation utilizes an independent valuation from a third party which uses a discounted cash flow model to estimate the fair value of its loan servicing rights. The valuation model incorporates prepayment assumptions to project loan servicing rights cash flows based on the current interest rate scenario, which is then discounted to estimate an expected fair value of the loan servicing rights. The valuation model considers portfolio characteristics of the underlying serviced portion of the SBA loans and uses the following significant unobservable inputs: (1) constant prepayment rate (“CPR”) assumptions based on the SBA sold pools historical CPR as quoted in Bloomberg and (2) a discount rate. Due to the nature of the valuation inputs, loan servicing rights are classified in Level 3 of the fair value hierarchy.

Fair Value of Financial Instruments

The Corporation is required to disclose estimated fair values for its financial instruments. Fair value estimates, methods, and assumptions, consistent with exit price concepts for fair value measurements, are set forth below:

 

 

 

December 31, 2024

 

 

 

Carrying
Amount

 

 

Fair Value

 

 

 

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

(In Thousands)

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

157,702

 

 

$

157,702

 

 

$

157,702

 

 

$

—

 

 

$

—

 

Securities available-for-sale

 

 

341,392

 

 

 

341,392

 

 

 

—

 

 

 

341,392

 

 

 

—

 

Securities held-to-maturity

 

 

6,741

 

 

 

6,535

 

 

 

—

 

 

 

6,535

 

 

 

—

 

Loans held for sale

 

 

13,498

 

 

 

14,577

 

 

 

—

 

 

 

14,577

 

 

 

—

 

Loans and lease receivables, net

 

 

3,077,343

 

 

 

3,049,890

 

 

 

—

 

 

 

—

 

 

 

3,049,890

 

Federal Home Loan Bank stock

 

 

11,616

 

 

N/A

 

 

N/A

 

 

N/A

 

 

N/A

 

Accrued interest receivable

 

 

12,879

 

 

 

12,879

 

 

 

12,879

 

 

 

—

 

 

 

—

 

Interest rate swaps

 

 

65,762

 

 

 

65,762

 

 

 

—

 

 

 

65,762

 

 

 

—

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

3,107,140

 

 

 

3,107,068

 

 

 

2,406,532

 

 

 

700,536

 

 

 

—

 

Federal Home Loan Bank advances and other borrowings

 

 

320,049

 

 

 

314,175

 

 

 

—

 

 

 

314,175

 

 

 

—

 

Accrued interest payable

 

 

10,175

 

 

 

10,175

 

 

 

10,175

 

 

 

—

 

 

 

—

 

Interest rate swaps

 

 

57,068

 

 

 

57,068

 

 

 

—

 

 

 

57,068

 

 

 

—

 

Off-balance sheet items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Standby letters of credit

 

 

209

 

 

 

209

 

 

 

—

 

 

 

—

 

 

 

209

 

N/A = The fair value is not applicable due to restrictions placed on transferability

 

 

 

December 31, 2023

 

 

 

Carrying
Amount

 

 

Fair Value

 

 

 

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

(In Thousands)

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

139,510

 

 

$

139,510

 

 

$

139,510

 

 

$

—

 

 

$

—

 

Securities available-for-sale

 

 

297,006

 

 

 

297,006

 

 

 

—

 

 

 

297,006

 

 

 

—

 

Securities held-to-maturity

 

 

8,503

 

 

 

8,255

 

 

 

—

 

 

 

8,255

 

 

 

—

 

Loans held for sale

 

 

4,589

 

 

 

4,956

 

 

 

—

 

 

 

4,956

 

 

 

—

 

Loans and lease receivables, net

 

 

2,818,986

 

 

 

2,789,731

 

 

 

—

 

 

 

—

 

 

 

2,789,731

 

Federal Home Loan Bank stock

 

 

12,042

 

 

N/A

 

 

N/A

 

 

N/A

 

 

N/A

 

Accrued interest receivable

 

 

13,275

 

 

 

13,275

 

 

 

13,275

 

 

 

—

 

 

 

—

 

Interest rate swaps

 

 

55,597

 

 

 

55,597

 

 

 

—

 

 

 

55,597

 

 

 

—

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

2,796,779

 

 

 

2,795,463

 

 

 

2,101,939

 

 

 

693,524

 

 

 

—

 

Federal Home Loan Bank advances and other borrowings

 

 

330,916

 

 

 

320,287

 

 

 

—

 

 

 

320,287

 

 

 

—

 

Accrued interest payable

 

 

10,860

 

 

 

10,860

 

 

 

10,860

 

 

 

—

 

 

 

—

 

Interest rate swaps

 

 

51,949

 

 

 

51,949

 

 

 

—

 

 

 

51,949

 

 

 

—

 

Off-balance sheet items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Standby letters of credit

 

 

190

 

 

 

190

 

 

 

—

 

 

 

—

 

 

 

190

 

N/A = The fair value is not applicable due to restrictions placed on transferability

Disclosure of fair value information about financial instruments, for which it is practicable to estimate that value, is required whether or not recognized in the Consolidated Balance Sheets. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instruments. Certain financial instruments and all non-financial instruments are excluded from the disclosure requirements. Accordingly, the aggregate fair value amounts presented do not necessarily represent the underlying value of the Corporation.

Securities: The fair value measurements of investment securities are determined by a third-party pricing service which considers observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, trade execution data, market consensus prepayment speeds, credit information, and the securities’ terms and conditions, among other things. The fair value measurements are subject to independent verification by another pricing source on a quarterly basis to review for reasonableness. Any significant differences in pricing are reviewed with appropriate members of management who have the relevant technical expertise to assess the results. The Corporation has determined that these valuations are classified in Level 2 of the fair value hierarchy. When the independent pricing service does not provide a fair value measurement for a particular security, the Corporation will estimate the fair value based on specific information about each security. Fair values derived in this manner are classified in Level 3 of the fair value hierarchy.

Loans Held for Sale: Loans held for sale, which consist of the guaranteed portions of SBA 7(a) loans, are carried at the lower of cost or estimated fair value. The estimated fair value is based on what secondary markets are currently offering for portfolios with similar characteristics.

Derivatives: The carrying amount and fair value of existing derivative financial instruments are based upon independent valuation models, which use widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative contract. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The Corporation incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Corporation considers the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees.

Limitations: Fair value estimates are made at a discrete point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Corporation’s entire holding of a particular financial instrument. Because no market exists for a significant portion of the Corporation’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

Fair value estimates are based on existing balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and are not considered in the estimates.
v3.25.0.1
Condensed Parent Only Financial Information
 12 Months Ended
Dec. 31, 2024
Condensed Financial Information Disclosure [Abstract]  
Condensed Parent Only Financial Information

Note 20 — Condensed Parent Only Financial Information

The following represents the condensed financial information of the Corporation only:

Condensed Balance Sheets

 

 

December 31,
2024

 

 

December 31,
2023

 

 

(In Thousands)

 

Assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

5,384

 

 

$

2,027

 

Investments in subsidiaries, at equity

 

 

379,604

 

 

 

339,854

 

Premises and equipment, net

 

 

67

 

 

 

51

 

Other assets

 

 

2,908

 

 

 

697

 

Total assets

 

$

387,963

 

 

$

342,629

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

Subordinated notes and other borrowings

 

$

54,689

 

 

$

49,396

 

Accrued interest payable and other liabilities

 

 

4,685

 

 

 

3,645

 

Total liabilities

 

 

59,374

 

 

 

53,041

 

Stockholders’ equity

 

 

328,589

 

 

 

289,588

 

Total liabilities and stockholders’ equity

 

$

387,963

 

 

$

342,629

 

 

Condensed Statements of Income

 

 

For the Year Ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

 

(In Thousands)

 

Net interest expense

 

$

3,283

 

 

$

1,989

 

 

$

2,295

 

Non-interest income

 

 

 

 

 

 

 

 

 

Dividends from subsidiaries

 

 

11,500

 

 

 

12,100

 

 

 

2,000

 

Consulting and rental income from consolidated
   subsidiaries

 

 

5,812

 

 

 

5,644

 

 

 

5,794

 

Other non-interest income

 

 

10

 

 

 

43

 

 

 

69

 

Total non-interest income

 

 

17,322

 

 

 

17,787

 

 

 

7,863

 

Non-interest expense

 

 

8,375

 

 

 

8,234

 

 

 

7,633

 

Gain (loss) before income tax benefit and equity in
   undistributed net income of consolidated subsidiaries

 

 

5,664

 

 

 

7,564

 

 

 

(2,065

)

Income tax benefit

 

 

1,940

 

 

 

337

 

 

 

1,387

 

Gain (loss) before equity in undistributed net income of
   consolidated subsidiaries

 

 

7,604

 

 

 

7,901

 

 

 

(678

)

Equity in undistributed net income of consolidated
   subsidiaries

 

 

36,641

 

 

 

29,126

 

 

 

41,536

 

Net income

 

$

44,245

 

 

$

37,027

 

 

$

40,858

 

 

Condensed Statements of Cash Flows

 

 

For the Year Ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

 

(In Thousands)

 

Operating activities

 

 

 

 

 

 

 

 

 

Net income

 

$

44,245

 

 

$

37,027

 

 

$

40,858

 

Adjustments to reconcile net income to net cash used in
   operating activities:

 

 

 

 

 

 

 

 

 

Equity in undistributed earnings of consolidated subsidiaries

 

 

(36,641

)

 

 

(29,126

)

 

 

(41,536

)

Share-based compensation

 

 

2,785

 

 

 

2,977

 

 

 

2,584

 

Excess tax benefit from share-based compensation

 

 

(219

)

 

 

(91

)

 

 

(91

)

Net (decrease) increase in other liabilities

 

 

(146

)

 

 

(1,854

)

 

 

2,592

 

Other, net

 

 

(1,639

)

 

 

1,207

 

 

 

(530

)

Net cash provided by operating activities

 

 

8,385

 

 

 

10,140

 

 

 

3,877

 

Investing activities

 

 

 

 

 

 

 

 

 

Proceeds from redemption of Trust II stock

 

 

—

 

 

 

—

 

 

 

315

 

Capital contributions to subsidiaries

 

 

—

 

 

 

(15,000

)

 

 

—

 

Net cash (used in) provided by investing activities

 

 

—

 

 

 

(15,000

)

 

 

315

 

Financing activities

 

 

 

 

 

 

 

 

 

Net increase (decreases) in long-term borrowed funds

 

 

293

 

 

 

54

 

 

 

(357

)

Proceeds from issuance of subordinated notes payable

 

 

20,000

 

 

 

15,000

 

 

 

20,000

 

Repayment of subordinated notes payable

 

 

(15,000

)

 

 

—

 

 

 

(9,090

)

Repayment of junior subordinated debentures

 

 

—

 

 

 

—

 

 

 

(10,076

)

Proceeds from issuance of preferred stock

 

 

—

 

 

 

—

 

 

 

11,992

 

Proceeds from purchased funds and other short-term debt

 

 

—

 

 

 

—

 

 

 

(500

)

Purchase of treasury stock

 

 

(1,270

)

 

 

(2,971

)

 

 

(6,126

)

Preferred stock dividends paid

 

 

(875

)

 

 

(875

)

 

 

(683

)

Cash dividends paid

 

 

(8,320

)

 

 

(7,578

)

 

 

(6,688

)

Net proceeds from purchases of ESPP shares

 

 

144

 

 

 

128

 

 

 

134

 

Net cash (used in) provided by financing activities

 

 

(5,028

)

 

 

3,758

 

 

 

(1,394

)

Net increase (decrease) in cash and due from banks

 

 

3,357

 

 

 

(1,102

)

 

 

2,798

 

Cash and cash equivalents at the beginning of the period

 

 

2,027

 

 

 

3,129

 

 

 

331

 

Cash and cash equivalents at the end of the period

 

$

5,384

 

 

$

2,027

 

 

$

3,129

 
v3.25.0.1
Segment Information
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Information

Note 21 — Segment Information

The Corporation’s reportable segment is determined by the Chief Executive Officer, who is the designated chief operating decision maker, based upon information provided by the Corporation’s products and services offered, primarily banking operations. The segment is also distinguished by the level of information provided to the chief operating decision maker, who uses such information to review performance of various components of the business. These components are then aggregated if operating performance, products and services and customers are similar. The chief operating decision maker will evaluate the financial performance of the Corporation’s business components such as by evaluating revenue streams, significant expenses, and budget to actual results in assessing the Corporation’s segment and in the determination of allocating resources. The chief operating decision maker uses revenue streams to evaluate product pricing and significant expenses to assess performance and return on assets. The chief operating decision maker uses consolidated net income to benchmark the Corporation against its competitors. The benchmarking analysis coupled with monitoring of budget to actual results is used in assessment performance and in establishing compensation. Loans, investments, and deposits provide the revenues in the banking operation. Interest expense, provision for credit losses and payroll provide the significant expenses in the banking operation. All operations are domestic.

 

For the Year Ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

 

(In Thousands)

 

Interest income

 

$

233,130

 

 

$

194,928

 

 

$

121,371

 

Reconciliation of revenue

 

 

 

 

 

 

 

 

 

Other revenues

 

 

29,251

 

 

 

31,308

 

 

 

29,428

 

Total consolidated revenues

 

 

262,381

 

 

 

226,236

 

 

 

150,799

 

Less: interest expense

 

 

108,924

 

 

 

82,340

 

 

 

22,949

 

Segment net interest and non-interest income

 

 

153,457

 

 

 

143,896

 

 

 

127,850

 

Less:

 

 

 

 

 

 

 

 

 

Provision for credit losses

 

 

8,827

 

 

 

8,182

 

 

 

(3,868

)

Compensation expense

 

 

63,105

 

 

 

61,059

 

 

 

57,742

 

Other segment items

 

 

30,375

 

 

 

27,516

 

 

 

21,732

 

Income tax expense

 

 

6,905

 

 

 

10,112

 

 

 

11,386

 

Segment and consolidated net income

 

$

44,245

 

 

$

37,027

 

 

$

40,858

 

 

 

 

 

 

 

 

 

 

 

Other segment disclosures:

 

 

 

 

 

 

 

 

 

Interest income

 

$

233,130

 

 

$

194,928

 

 

$

121,371

 

Interest expense

 

 

108,924

 

 

 

82,340

 

 

 

22,949

 

Depreciation, amortization, and accretion

 

 

3,738

 

 

 

3,636

 

 

 

4,066

 

Other significant noncash item:

 

 

 

 

 

 

 

 

 

      Provision for credit losses

 

 

8,827

 

 

 

8,182

 

 

 

(3,868

)

Segment assets

 

 

3,853,215

 

 

 

3,507,846

 

 

 

2,976,611

 

Expenses for segment assets

 

 

93,480

 

 

 

88,575

 

 

 

79,474

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of assets:

 

 

 

 

 

 

 

 

 

Total assets for reportable segments

 

$

3,853,215

 

 

$

3,507,846

 

 

$

2,976,611

 

Other assets

 

 

—

 

 

 

—

 

 

 

—

 

Total consolidated assets

 

$

3,853,215

 

 

$

3,507,846

 

 

$

2,976,611

 
v3.25.0.1
Condensed Quarterly Earnings (unaudited)
 12 Months Ended
Dec. 31, 2024
Quarterly Financial Information Disclosure [Abstract]  
Condensed Quarterly Earnings (unaudited)

Note 22 — Condensed Quarterly Earnings (unaudited)

 

 

 

2024

 

 

2023

 

 

 

Fourth
Quarter

 

 

Third
Quarter

 

 

Second
Quarter

 

 

First
Quarter

 

 

Fourth
Quarter

 

 

Third
Quarter

 

 

Second
Quarter

 

 

First
Quarter

 

 

 

(Dollars in Thousands, Except Per Share Data)

 

Interest income

 

$

60,110

 

 

$

59,327

 

 

$

57,910

 

 

$

55,783

 

 

$

54,762

 

 

$

50,941

 

 

$

47,161

 

 

$

42,064

 

Interest expense

 

 

26,962

 

 

 

28,320

 

 

 

27,370

 

 

 

26,272

 

 

 

25,222

 

 

 

22,345

 

 

 

19,414

 

 

 

15,359

 

Net interest income

 

 

33,148

 

 

 

31,007

 

 

 

30,540

 

 

 

29,511

 

 

 

29,540

 

 

 

28,596

 

 

 

27,747

 

 

 

26,705

 

Provision for credit losses

 

 

2,701

 

 

 

2,087

 

 

 

1,713

 

 

 

2,326

 

 

 

2,573

 

 

 

1,817

 

 

 

2,231

 

 

 

1,561

 

Non-interest income

 

 

8,005

 

 

 

7,064

 

 

 

7,425

 

 

 

6,757

 

 

 

7,094

 

 

 

8,430

 

 

 

7,374

 

 

 

8,410

 

Non-interest expense

 

 

23,152

 

 

 

23,107

 

 

 

23,879

 

 

 

23,342

 

 

 

21,588

 

 

 

23,189

 

 

 

22,031

 

 

 

21,767

 

Income before income tax
   expense

 

 

15,300

 

 

 

12,877

 

 

 

12,373

 

 

 

10,600

 

 

 

12,473

 

 

 

12,020

 

 

 

10,859

 

 

 

11,787

 

Income tax expense

 

 

885

 

 

 

2,351

 

 

 

1,917

 

 

 

1,752

 

 

 

2,703

 

 

 

2,079

 

 

 

2,522

 

 

 

2,808

 

Net income

 

 

14,415

 

 

 

10,526

 

 

 

10,456

 

 

 

8,848

 

 

 

9,770

 

 

 

9,941

 

 

 

8,337

 

 

 

8,979

 

Preferred stock dividend

 

 

219

 

 

 

218

 

 

 

219

 

 

 

219

 

 

 

219

 

 

 

218

 

 

 

219

 

 

 

219

 

Income available to common
   shareholders

 

$

14,196

 

 

$

10,308

 

 

$

10,237

 

 

$

8,629

 

 

$

9,551

 

 

$

9,723

 

 

$

8,118

 

 

$

8,760

 

Per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings

 

$

1.71

 

 

$

1.24

 

 

$

1.23

 

 

$

1.04

 

 

$

1.15

 

 

$

1.17

 

 

$

0.98

 

 

$

1.05

 

Diluted earnings

 

 

1.71

 

 

 

1.24

 

 

 

1.23

 

 

 

1.04

 

 

 

1.15

 

 

 

1.17

 

 

 

0.98

 

 

 

1.05

 

Dividends declared

 

 

0.25

 

 

 

0.25

 

 

 

0.25

 

 

 

0.25

 

 

 

0.2275

 

 

 

0.2275

 

 

 

0.2275

 

 

 

0.2275

 
v3.25.0.1
Nature of Operations and Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation

Basis of Presentation. The Consolidated Financial Statements include the accounts of the Corporation and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates

Use of Estimates. Management of the Corporation is required to make estimates and assumptions which affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements as well as reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates. Material estimates that could significantly change in the near-term include the value of securities and interest rate swaps, level of allowance for credit losses, lease residuals, property under operating leases, goodwill, and income taxes.
Subsequent Events

Subsequent Events. Subsequent events have been evaluated through the date of issuance of the Consolidated Financial Statements. No significant subsequent events have occurred through this date requiring adjustment to the financial statements or disclosures.
Cash and Cash Equivalents

Cash and Cash Equivalents. The Corporation considers federal funds sold, interest-bearing deposits, and short-term investments that have original maturities of three months or less to be cash equivalents.
Securities

Securities. The Corporation classifies its investment and mortgage-related securities as available-for-sale, held-to-maturity, and trading. Debt securities that the Corporation has the positive intent and ability to hold to maturity are classified as held-to-maturity and are stated at amortized cost. Debt securities bought expressly for the purpose of selling in the near term are classified as trading securities and are measured at fair value with unrealized gains and losses reported in earnings. Debt securities not classified as held-to-maturity or as trading are classified as available-for-sale. Available-for-sale securities are measured at fair value with unrealized gains and losses reported as a separate component of stockholders’ equity, net of tax. Realized gains and losses are included in the Consolidated Statements of Income as a component of non-interest income. Credit losses for securities are recorded as an allowance for credit losses through the provision for credit losses. The cost of securities sold is based on the specific identification method. The Corporation did not hold any trading securities at December 31, 2024 or 2023.

Discounts and premiums on securities are accreted and amortized into interest income using the effective yield method over the estimated life (based on maturity date, call date, or weighted average life) of the related security.

Allowance for Credit Loss (“ACL”) - Available For Sale (“AFS”) Debt Securities. For AFS debt securities in an unrealized loss position, the Corporation first assesses whether it intends to sell, or it is more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security's amortized cost basis is written down to fair value through income. For AFS debt securities that do not meet the aforementioned criteria, the Corporation evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and

an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any decline in fair value that has not been recorded through an allowance for credit losses is recognized in other comprehensive income, net of applicable taxes.

Changes in the ACL are recorded as a provision for (or recovery of) credit loss expense. Losses are charged against allowance when management believes that uncollectibility of an AFS debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met.

Accrued interest receivable on AFS debt securities totaled $1.3 million at December 31, 2024 and is excluded from the estimate of credit losses.

ACL - Held To Maturity (“HTM”) Debt Securities. Management measures expected credit losses on HTM debt securities on a collective basis by major security type. Accrued interest receivable on HTM debt securities totaled $31,000 at December 31, 2024 and is excluded from the estimate of credit losses. The HTM securities portfolio includes residential mortgage backed securities (“MBS”) commercial MBS, and municipal securities. All residential and commercial MBS are U.S. government issued or U.S. government sponsored and substantially all municipal bonds are rated A or above.
Loans Held for Sale

Loans Held for Sale. The guaranteed portions of SBA loans which are originated and intended for sale in the secondary market are classified as held for sale. These loans are carried at the lower of cost or fair value in the aggregate. Unrealized losses on such loans are recognized through a valuation allowance by a charge to other non-interest income. Gains and losses on the sale of loans are also included in other non-interest income. As assets specifically originated for sale, the origination of, disposition of, and gain/loss on these loans are classified as operating activities in the Consolidated Statements of Cash Flows. Fees received from the borrower and direct costs to originate the loans are deferred and recognized as part of the gain or loss on sale. There were $13.5 million and $4.6 million in loans held for sale outstanding at December 31, 2024 and 2023, respectively.
Loans and Leases

Loans and Leases. Loans and leases which management has the intent and ability to hold for the foreseeable future or until maturity are reported at their outstanding principal balance with adjustments for partial charge-offs, the allowance for credit losses, deferred fees or costs on originated loans and leases, and unamortized premiums or discounts on any purchased loans.

Occasionally, the Corporation modifies loans or leases to borrowers in financial distress by providing principal forgiveness, term extension, an other-than-significant payment delay or interest rate reduction. When principal forgiveness is provided, the amount of forgiveness is charged-off against the allowance for credit loss.

Interest on non-accrual loans and leases is accrued and credited to income on a daily basis based on the unpaid principal balance and is calculated using the effective interest method. Per policy, a loan or a lease is placed on non-accrual status when it becomes 90 days past due or it is doubtful that contractual principal and interest will be collected in accordance with the terms of the contract. A loan or lease is determined to be past due if the borrower fails to meet a contractual payment and will continue to be considered past due until all contractual payments are received. When a loan or lease is placed on non-accrual, the interest accrual is discontinued and previously accrued but uncollected interest is deducted from interest income. If collectability of the contractual principal and interest is in doubt, payments received are first applied to reduce the loan principal. If collectability of the contractual payments is not in doubt, payments may be applied to interest for interest amounts due on a cash basis. As soon as it is determined with certainty that the principal of a non-performing loan or lease is uncollectible, either through collections from the borrower or disposition of the underlying collateral, the portion of the carrying balance that exceeds the estimated measurement value of the loan or lease is charged off. Loans or leases are returned to accrual status when they are brought current in terms of both principal and accrued interest due, have performed in accordance with contractual terms for a reasonable period of time, and when the ultimate collectability of total contractual principal and interest is no longer doubtful.

Transfers of assets, including but not limited to the guaranteed portions of SBA loans and participation interests in other, non-SBA originated loans, that upon completion of the transfer satisfy the conditions to be reported as a sale, including legal isolation, are derecognized from the Consolidated Financial Statements. Transfers of assets that upon completion of the transfer do not meet the conditions of a sale are recorded on a gross basis with a secured borrowing identified to reflect the amount of the transferred interest.

Loan and lease origination fees as well as certain direct origination costs are deferred and amortized as an adjustment to loan yields over the stated term of the loan. Loans or leases that result from a refinance or restructuring, other than modified loans or leases to borrowers in financial distress, where terms are at least as favorable to the Corporation as the terms for comparable loans to other borrowers with similar collection risks and result in an essentially new loan, are accounted for as a new loan. Any unamortized net fees, costs, or penalties are recognized when the new loan or lease is originated. Unamortized net loan or lease fees or costs for loans and leases that result from a refinance or restructure with only minor modifications to the original loan or lease contract are carried forward as a part of the net investment in the new loan. For modified loans or leases to borrowers in financial distress, all fees received in connection with a modification of terms are applied as a reduction of the loan or lease and any related costs, including direct loan origination costs, are charged to expense as incurred.
ACL - Loans

ACL - Loans. The ACL is a valuation account that is deducted from the loans' amortized cost basis to present the net amounts expected to be collected on the loans. Loans are charged off against the allowance when management believes that the uncollectibility of a loan balance is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off.

Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as changes in external conditions, such as changes in unemployment rates, property values, or other relevant factors.

Accrued interest receivable on loans totaled $11.0 million at December 31, 2024 and is excluded from the estimate of credit losses.

ACL - Loans - Collectively Evaluated. The ACL is measured on a collective pool basis when similar risk characteristics exist. The Corporation has identified the following portfolio segments:

Commercial Real Estate: Commercial real estate portfolio segments utilize substantially similar processes and controls. Due to the collateral types, availability of data, and results of the Loss Driver Analysis (“LDA”), management utilizes a unique forecast model for each portfolio segment along with a separate analysis of subjective factors.

•
Construction - Loans secured by real estate used to finance land development or construction.
•
1-4 Family - Loans secured by 1-4 family residential property
•
Multi-family - Loans secured by multi-family residential property
•
Owner Occupied - Loans secured by nonfarm, nonresidential owner-occupied property
•
Non-owner Occupied - Loans secured by other nonfarm, nonresidential property

Commercial and Industrial Lending: Commercial and industrial lending is a portfolio segment where management uses a common forecast due to common risk management, similarity in collateral types, availability of data, and results of the LDA. Management has distinct processes, controls, and procedures which enable more precise development of subjective factors at the pool level.

•
Commercial - Loans to small- to medium-sized companies in our primary markets in Wisconsin, Kansas, and Missouri, predominantly through lines of credit and term loans to businesses.
•
Asset Based Lending - Products include revolving lines of credit and term loans for strategic acquisitions, capital expenditures, working capital, bank debt refinancing, debt restructuring, and corporate turnaround strategies.
•
Floorplan - Floor plan financing for independent auto dealerships nationwide.
•
SBA - Loans originated in accordance with the guidelines of the Small Business Administration (“SBA”). As the Corporation prefers to sell the guaranteed portion, the on-balance sheet loans are primarily unguaranteed.
•
Equipment finance - Loans and leases secured by a broad range of equipment to commercial clients in a variety of industries.

Consumer and other: Consumer loans consisted of marketable security loans and other personal loans for executives and high net-worth individuals. The Corporation uses a unique forecast model and subjective factors for this portfolio segment due to the client type and data availability.

Measures of the ACL are as follows:

Portfolio Segment

 

Pool

 

Measurement Method

 

Loss Driver

Commercial real estate

 

 

 

 

 

 

Owner occupied

 

 

 

Discounted Cash Flow

 

National unemployment, National GDP

Non-owner occupied

 

 

 

Discounted Cash Flow

 

National unemployment, National GDP

Construction

 

 

 

Discounted Cash Flow

 

National unemployment, National GDP

Multi-family

 

 

 

Discounted Cash Flow

 

National unemployment, National GDP

1-4 Family

 

 

 

Discounted Cash Flow

 

National unemployment, National GDP

Commercial and industrial

 

 

 

 

 

 

 

 

Commercial

 

Discounted Cash Flow

 

National unemployment, National GDP

 

 

ABL

 

Discounted Cash Flow

 

National unemployment, National GDP

 

 

Floorplan

 

Discounted Cash Flow

 

National unemployment, National GDP

 

 

SBA

 

Weighted Average Remaining Maturity

 

N/A

 

 

Equipment Finance

 

Discounted Cash Flow

 

National unemployment, National GDP

Consumer and other

 

 

 

Discounted Cash Flow

 

National unemployment, National GDP

The Corporation utilized a discounted cash flow (DCF) or Weighted Average Remaining Maturity (WARM) method to estimate the quantitative portion of the allowance for credit losses for loans evaluated on a collective pooled basis. For each segment, a LDA was performed in order to identify loss drivers and create a regression model for use in forecasting cash flows. For all DCF-based pools, the LDA analyses utilized the Corporation’s and peer data from the Federal Financial Institutions Examination Council's (“FFIEC”) Call Report filings.

In creating the DCF model, the Corporation has established a one-year reasonable and supportable forecast period with a one-year straight line reversion to the long-term historical average. Due to the infrequency of losses, the Corporation elected to use peer data for a more statistically sound calculation.

Key inputs into the DCF model include loan-level detail, including the amortized cost basis of individual loans, payment structure, loss history, and forecasted loss drivers. The Corporation utilizes a third party to provide economic forecasts under various scenarios, which are assessed quarterly considering the scenarios in the context of the current economic environment and presumed risk of loss.

Expected credit losses are estimated over the contractual term of the loans, adjusted for prepayments when appropriate. The contractual term excludes extensions, renewals, and modifications unless the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Corporation.

Additional key assumptions in the DCF model include the probability of default (“PD”), loss given default (“LGD”), and prepayment/curtailment rates. The Corporation utilizes the model-driven PD and a LGD derived using a method referred to as Frye Jacobs. The Frye Jacobs method is a mathematical formula that traces the relationship between LGD and PD over time and projects the LGD based on the level of PD forecasted. In all cases, the Frye Jacobs method is utilized to calculate LGDs during the forecast period, reversion period and long-term historical average. Prepayment and curtailment rates were calculated through third party studies of the Corporation’s own data.

When the DCF method is used to determine the allowance for credit losses, management adjusts the effective interest rate used to discount expected cash flows to incorporate expected prepayments.

For the WARM-based SBA pool, Corporation-specific data was used to develop the model assumptions. The Corporation developed a reasonable and supportable estimate for the remaining maturity and estimated loss through analysis of historical data. The remaining maturity calculation excludes loans originated under the Paycheck Protection Program as such loans are inconsistent with the current portfolio composition. The quarterly loss rate data includes 2017 to current as the SBA lending policies and procedures were realigned in 2016 following the acquisition of Alterra Bank. Only the unguaranteed portion of the SBA loans are assessed via WARM. The risk of a failed guarantee claim is captured under ASC 450 contingency accounting.

Qualitative factors for DCF and WARM methodologies include the following:

•
The Corporation’s lending policies and procedures, including changes in lending strategies, underwriting standards and practices for collections, write-offs, and recoveries;
•
Actual and expected changes in international, national, regional, and local economic and business conditions and developments in which the Corporation operates that affect the collectability of financial assets;
•
The experience, ability, and depth of the Corporation’s lending, investment, collection, and other relevant management and staff;
•
The volume of past due loans and leases, the volume of non-accrual and the volume and severity of adversely classified or graded assets;
•
The existence and effect of industry concentrations of credit;
•
Independent indicators of collateral quality;
•
The quality of the Corporation’s credit review function and;
•
The effect of other external factors such as the regulatory, legal and technological environments, competition, and events such as natural disasters or pandemics

ACL - Loans - Individually Evaluated. Loans that do not share risk characteristics are evaluated on an individual basis and are excluded from the collective evaluation. The Corporation has determined that all loans which have been placed on non-performing status and other performing loans that have been identified due to non-conforming characteristics will be individually evaluated. Individual analysis will evaluate the required specific reserve for loans in scope. Specific reserves on non-performing loans are typically based on management’s best estimate of the fair value of collateral securing these loans, adjusted for selling costs as appropriate.

ACL - Off-Balance Sheet Credit Exposures. The Corporation estimates expected credit losses over the contractual period in which the Corporation is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Corporation. The allowance for credit losses on off-balance sheet credit exposure is adjusted as a provision for credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. Funding rates are based on a historical analysis of the Corporation’s portfolio, while estimates of credit losses are determined using the same loss rates as funded loans.
Premises and Equipment, net

Premises and Equipment, net. The cost of capitalized leasehold improvements is amortized on the straight-line method over the lesser of the term of the respective lease or estimated economic life. Equipment is stated at cost less accumulated depreciation and amortization which is calculated by the straight-line method over the estimated useful lives of 3 to 10 years. Maintenance and repair costs are charged to expense as incurred. Improvements which extend the useful life are capitalized and depreciated over the remaining useful life of the assets.
Repossessed Assets

Repossessed Assets. Property acquired by repossession, foreclosure, or by deed in lieu of foreclosure is recorded at the fair value of the underlying property, less costs to sell. This fair value becomes the new cost basis for the repossessed asset. Any write-down in the carrying value of a loan or lease at the time of acquisition is charged to the allowance for credit losses. Any subsequent write-downs to reflect current fair value, as well as gains and losses on disposition and revenues are recorded in non-interest expense. Any required or prudent costs incurred relating to the development and improvement of the property are capitalized while holding period costs are charged to other non-interest expense.
Leases

Leases. At contract inception, the Corporation determines whether the arrangement is or contains a lease and determines the lease classification. The lease term is determined based on the non-cancellable term of the lease adjusted to the extent optional renewal terms and termination rights are reasonably certain. Lease expense is recognized evenly over the lease term. Variable lease payments are recognized as period costs. The present value of remaining lease payments is recognized as a liability on the balance sheet with a corresponding right-of-use asset adjusted for prepaid or accrued lease payments. The Corporation uses the Federal Home Loan Bank fixed advance rate as of the lease inception date that most closely resembles the remaining term of the lease as the incremental borrowing rate, unless the interest rate implicit in the lease contract is readily determinable. The Corporation has elected to exclude

short-term leases as well as all non-lease items, such as common area maintenance, from being included in the lease liability on the Consolidated Balance Sheets.
Bank-Owned Life Insurance

Bank-Owned Life Insurance. Bank-owned life insurance (“BOLI”) is reported at the amount that would be realized if the life insurance policies were surrendered on the balance sheet date. BOLI policies owned by the Bank are purchased with the objective to fund certain future employee benefit costs with the death benefit proceeds. The cash surrender value of such policies is recorded in bank-owned life insurance on the Consolidated Balance Sheets and changes in the value are recorded in non-interest income. The total death benefit of all BOLI policies was $133.8 million and $133.7 million as of December 31, 2024 and 2023, respectively. There are no restrictions on the use of BOLI proceeds nor are there any contractual restrictions on the ability to surrender the policy. As of December 31, 2024 and 2023, there were no borrowings against the cash surrender value of the BOLI policies.
Federal Home Loan Bank Stock

Federal Home Loan Bank Stock. The Bank is required to maintain Federal Home Loan Bank (“FHLB”) stock as members of the FHLB, and in amounts as required by the FHLB. This equity security is “restricted” in that it can only be sold back to the FHLB or another member institution at par. Therefore, it is less liquid than other marketable equity securities and the fair value is equal to cost. At December 31, 2024 and 2023, the Bank had FHLB stock of $11.6 million and $12.0 million, respectively. The Corporation periodically evaluates its holding in FHLB stock for impairment. Should the stock be impaired, it would be written down to its estimated fair value. There were no impairments recorded on FHLB stock during the years ended December 31, 2024 and 2023.
Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets. Goodwill and other intangible assets consist primarily of goodwill and loan servicing rights. Core deposit intangibles have estimated finite lives and are amortized on an accelerated basis to expense over a period of seven years. Loan servicing rights, when originated, are initially recorded at fair value and subsequently amortized in proportion to and over the period of estimated net servicing income. The Corporation reviews other intangible assets for impairment at least annually, or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable, in which case an impairment charge would be recorded.

Goodwill is not amortized but is subject to impairment tests on at least an annual basis, and more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount (including goodwill). An initial qualitative evaluation is made to assess the likelihood of impairment and determine whether further quantitative testing to calculate the fair value is necessary. When the qualitative evaluation indicates that impairment is more likely than not, quantitative testing is required whereby the fair value of each reporting unit is calculated and compared to the recorded book value. If the calculated fair value of the reporting unit exceeds its carrying value, goodwill is not considered impaired. If the carrying value of a reporting unit exceeds its calculated fair value, an impairment charge is recognized in earnings in an amount equal to the difference.
Other Investments

Other Investments. The Corporation owns certain equity investments in other corporate organizations which are not consolidated because the Corporation does not own more than a 50% interest or exercise control over the organization. Investments in corporations representing at least a 20% interest are generally accounted for using the equity method and investments in corporations representing less than 20% interest are generally accounted for at cost. Investments in limited partnerships representing from at least a 3% up to a 50% interest in the entity are generally accounted for using the equity method and investments in limited partnerships representing less than 3% are generally accounted for at cost. All of these investments are periodically evaluated for impairment. Should an investment be impaired, it would be written down to its estimated fair value. The equity investments are reported in other assets and the income and expense from such investments, if any, is reported in non-interest income and non-interest expense.
Derivative Instruments

Derivative Instruments. The Corporation uses derivative instruments to protect against the risk of adverse price or interest rate movements on the value of certain assets, liabilities, future cash flows, and economic hedges for written client derivative contracts. Derivative instruments represent contracts between parties that usually require little or no initial net investment and result in one party delivering cash to the other party based on a notional amount and an underlying variable, as specified in the contract, and may be subject to master netting agreements.

Market risk is the risk of loss arising from an adverse change in interest rates, exchange rates, or equity prices. The Corporation’s primary market risk is interest rate risk. Instruments designed to manage interest rate risk include interest rate swaps, interest rate options, and interest rate caps and floors with indices that relate to the pricing of specific assets and liabilities. The nature and volume of the derivative instruments used to manage interest rate risk depend on the level and type of assets and liabilities on the balance

sheet and the risk management strategies for the current and anticipated rate environments. Counterparty risk with respect to derivative instruments occurs when a counterparty to a derivative contract with an unrealized gain fails to perform according to the terms of the agreement. Counterparty risk is managed by limiting the counterparties to highly rated dealers, requiring collateral postings when values are in deficit positions, applying uniform credit standards to all activities with credit risk, and monitoring the size and the maturity structure of the derivative portfolio.

All derivative instruments are to be carried at fair value on the Consolidated Balance Sheets. The accounting for the gain or loss due to changes in the fair value of a derivative instrument depends on whether the derivative instrument qualifies as a hedge. If the derivative instrument does not qualify as a hedge, the gains or losses are reported in earnings when they occur. However, if the derivative instrument qualifies as a hedge, the accounting varies based on the type of risk being hedged. The Corporation utilizes interest rate swaps offered directly to qualified commercial borrowers, which do not qualify for hedge accounting, and therefore, all changes in fair value and gains and losses on these instruments are reported in earnings as they occur. The effects of netting arrangements are disclosed within the Notes of the Consolidated Financial Statements. The Corporation offers interest rate swap products directly to qualified commercial borrowers. The Corporation economically hedges client derivative transactions by entering into offsetting interest rate swap contracts executed with a third party. Derivative transactions executed as part of this program are not considered hedging instruments and are marked-to-market through earnings each period. The derivative contracts have mirror-image terms, which results in the positions’ changes in fair value offsetting through earnings each period. The credit risk and risk of non-performance embedded in the fair value calculations is different between the dealer counterparties and the commercial borrowers which may result in a difference in the changes in the fair value of the mirror-image swaps. The Corporation incorporates credit valuation adjustments to appropriately reflect both its own non-performance risk and the counterparty’s risk in the fair value measurements. When evaluating the fair value of its derivative contracts for the effects of non-performance and credit risk, the Corporation considers the impact of netting and any applicable credit enhancements such as collateral postings, thresholds and guarantees.

The Corporation also enters into interest rate swaps to manage interest rate risk and reduce the cost of match-funding certain long-term fixed rate loans. These derivative contracts are designated as a cash flow hedge as the receipt of floating interest from the counterparty is used to manage interest rate risk associated with forecasted issuances of wholesale deposits and short-term FHLB advances. The change in fair value of the hedging instrument is recorded in accumulated other comprehensive income.
SBA Recourse Reserve

SBA Recourse Reserve. The Corporation establishes SBA recourse reserves on the guaranteed portions of sold SBA loans when it is probable that the SBA will deny or repair the guaranty on the sold portion of the loan and there is an estimated collateral shortfall. The recourse reserve is reported in accrued interest payable and other liabilities on the Consolidated Balance Sheets.

In the ordinary course of business, the Corporation sells the guaranteed portions of SBA loans to third parties. The Corporation has a continuing involvement in each of the transferred lending arrangements by way of relationship management, servicing the loans, as well as being subject to normal and customary requirements of the SBA loan program; however, there are no further obligations to the third-party participant required of the Corporation, other than standard representations and warranties related to sold amounts. In the event of a loss resulting from default and a determination by the SBA that there is a deficiency in the manner in which the loan was originated, funded, or serviced by the Corporation, the SBA may require the Corporation to repurchase the loan, deny its liability under the guaranty, reduce the amount of the guaranty, or, if it has already paid under the guaranty, seek recovery of the principal loss related to the deficiency from the Corporation. The Corporation must comply with applicable SBA regulations in order to maintain the guaranty. In addition, the Corporation retains the option to repurchase the sold guaranteed portion of an SBA loan if the loan defaults.
Income Taxes

Income Taxes. Deferred income tax assets and liabilities are computed for temporary differences in timing between the financial statement and tax basis of assets and liabilities that result in taxable or deductible amounts in the future based on enacted tax law and rates applicable to periods in which the differences are expected to affect taxable income. The effect of a change in tax rates on deferred taxes is recognized in income in the period that includes the enactment date. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversals of deferred tax liabilities, appropriate tax planning strategies, and projections for future taxable income over the period which the deferred tax assets are deductible. When necessary, valuation allowances are established to reduce deferred tax assets to the realizable amount.

Income tax expense or benefit represents the tax payable or tax refundable for a period, adjusted by the applicable change in deferred tax assets and liabilities for that period. The Corporation also invests in certain development entities that generate federal and state historic and low income housing tax credits and solar renewable energy tax credits. The tax benefits associated with these investments are accounted for either under the flow-through method, equity method, or proportional amortization method and are recognized when the respective project is placed in service or over the investment term. The Corporation and its subsidiaries file a consolidated federal income tax return and separate state income tax returns. Tax sharing agreements allocate taxes to each legal entity for the settlement of intercompany taxes. The Corporation applies a more likely than not standard to each of its tax positions when determining the amount of tax expense or benefit to record in its financial statements. Unrecognized tax benefits are recorded in other liabilities. The Corporation recognizes accrued interest relating to unrecognized tax benefits in income tax expense and penalties in other non-interest expense.
Other Comprehensive Income or Loss

Other Comprehensive Income or Loss. Comprehensive income or loss, shown as a separate financial statement, includes net income or loss, changes in unrealized gains and losses on available-for-sale securities, changes in deferred gains and losses on investment securities transferred from available-for-sale to held-to-maturity, if any, changes in unrealized gains and losses associated with cash flow hedging instruments, if any, and the amortization of deferred gains and losses associated with terminated cash flow hedges, if any. For the years ended December 31, 2024 and 2023, $8,000 and $45,000 of realized securities losses were recognized and reclassified out of accumulated other comprehensive loss, respectively.
Earnings Per Common Share

Earnings Per Common Share. Earnings per common share (“EPS”) is computed using the two-class method. Basic EPS is computed by dividing net income allocated to common shares by the weighted average number of common shares outstanding for the period, excluding any participating securities. Participating securities include unvested restricted shares. Unvested restricted shares are considered participating securities because holders of these securities receive non-forfeitable dividends at the same rate as the holders of the Corporation’s common stock. Diluted EPS is computed by dividing net income allocated to common shares adjusted for reallocation of undistributed earnings of unvested restricted shares by the weighted average number of common shares determined for the basic EPS plus the dilutive effect of common stock equivalents using the treasury stock method based on the average market price for the period.
Operating Segments

Operating Segments. While the chief decision-makers monitor the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a Corporation-wide basis. Operating segments are aggregated into one as operating results for all segments are similar. Accordingly, all of the financial service operations are considered by management to be aggregated in one reportable operating segment.

Share-Based Compensation

Share-Based Compensation. The Corporation may grant restricted stock awards, restricted stock units, and other stock based awards to plan participants, subject to forfeiture upon the occurrence of certain events until the dates specified in the participant’s award agreement. The Corporation accounts for forfeitures as they occur. While restricted stock is subject to forfeiture, restricted stock award participants may exercise full voting rights and will receive all dividends and other distributions paid with respect to the restricted shares. Dividend equivalent units with respect to restricted stock grants made after January 2023 will be deferred and paid at the time of vesting. Restricted stock units do not have voting rights and are provided dividend equivalents. The restricted stock granted under the 2019 Equity Incentive Plan (the “Plan”) is typically subject to a three or four year vesting period. Compensation expense for restricted stock is recognized over the requisite service period of three or four years for the entire award on a straight-line basis. Upon vesting of restricted stock, the benefit of tax deductions in excess of recognized compensation expense is reflected as an income tax benefit in the Consolidated Statements of Income.

The Corporation issues a combination of performance-based restricted stock units and restricted stock awards to plan participants. Vesting of the performance-based restricted stock units will be measured on Total Shareholder Return (“TSR”) and Return on Average Equity (“ROAE”) prior to 2023 or Return on Average Tangible Common Equity (“ROATCE”) for issuances after 2022, and will cliff-vest after a three-year measurement period based on the Corporation’s performance relative to a custom peer group. At the end of the performance period, the number of actual shares to be awarded varies between 0% and 200% of target amounts. Compensation expense is recognized for performance-based restricted stock units over the requisite service and performance period of generally three years for the entire expected award on a straight-line basis. The compensation expense for the awards expected to vest for the percentage of performance-based restricted stock units subject to the metric will be adjusted if there is a change in the expectation of metric. The compensation expense for the awards expected to vest for the percentage of performance-based restricted

stock units subject to the TSR metric are never adjusted, and are amortized utilizing the accounting fair value provided using a Monte Carlo pricing model.

The Corporation offers an Employee Stock Purchase Plan (“ESPP”) to all qualifying employees. The plan qualifies as an ESPP under section 423 of the Internal Revenue Code of 1986. Under the ESPP, eligible employees may enroll in a three month offer period that begins January, April, July, and October of each year. Employees may purchase a limited number of shares of the Corporation’s common stock at 90% of the fair market value on the last day of the offering period. The ESPP is treated as a compensatory plan for purposes of share-based compensation expense.
Recent Accounting Pronouncements

Recent Accounting Pronouncements. In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 820): Improvements to Reportable Segment Disclosures.” This update is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. This update was adopted for the year ended December 31, 2024. The Corporation is one operating segment and therefore, the adoption of ASU 2023-07 did not have a material impact to the consolidated financial statements.

In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” This update enhances the transparency and decision usefulness of income tax disclosures by providing better information regarding exposure to potential changes in jurisdictional tax legislation and related forecasting and cash flow opportunities. This update is effective for fiscal years beginning after December 15, 2024. The Corporation is assessing the impact of the standard.
Reclassification

Reclassifications. Certain amounts in the 2023 consolidated financial statements have been reclassified to conform to the 2024 presentation. These reclassifications were not material and did not impact previously reported net income or comprehensive income.
Fair Value of Financial Instruments

The Corporation determines the fair values of its financial instruments based on the fair value hierarchy established in ASC Topic 820, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Fair value is defined as the price that would be received in an orderly transaction that is not a forced liquidation or distressed sale at the measurement date and is based on exit prices. Fair value includes assumptions about risk, such as nonperformance risk in liability fair values, and is a market-based measurement, not an entity-specific measurement. The standard describes three levels of inputs that may be used to measure fair value.

Level 1 — Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Corporation has the ability to access at the measurement date.

Level 2 — Level 2 inputs are inputs, other than quoted prices included with Level 1, that are observable for the asset or liability either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 — Level 3 inputs are supported by little or no market activity and are significant to the fair value of the assets or liabilities.

In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Corporation’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability.
Fair Value Measurement

Disclosure of fair value information about financial instruments, for which it is practicable to estimate that value, is required whether or not recognized in the Consolidated Balance Sheets. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instruments. Certain financial instruments and all non-financial instruments are excluded from the disclosure requirements. Accordingly, the aggregate fair value amounts presented do not necessarily represent the underlying value of the Corporation.

Securities: The fair value measurements of investment securities are determined by a third-party pricing service which considers observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, trade execution data, market consensus prepayment speeds, credit information, and the securities’ terms and conditions, among other things. The fair value measurements are subject to independent verification by another pricing source on a quarterly basis to review for reasonableness. Any significant differences in pricing are reviewed with appropriate members of management who have the relevant technical expertise to assess the results. The Corporation has determined that these valuations are classified in Level 2 of the fair value hierarchy. When the independent pricing service does not provide a fair value measurement for a particular security, the Corporation will estimate the fair value based on specific information about each security. Fair values derived in this manner are classified in Level 3 of the fair value hierarchy.

Loans Held for Sale: Loans held for sale, which consist of the guaranteed portions of SBA 7(a) loans, are carried at the lower of cost or estimated fair value. The estimated fair value is based on what secondary markets are currently offering for portfolios with similar characteristics.

Derivatives: The carrying amount and fair value of existing derivative financial instruments are based upon independent valuation models, which use widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative contract. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The Corporation incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Corporation considers the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees.

Limitations: Fair value estimates are made at a discrete point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Corporation’s entire holding of a particular financial instrument. Because no market exists for a significant portion of the Corporation’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

Fair value estimates are based on existing balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and are not considered in the estimates.
v3.25.0.1
Earnings Per Common Share (Policies)
 12 Months Ended
Dec. 31, 2024
Earnings Per Share [Abstract]  
Earnings Per Common Share

Earnings Per Common Share. Earnings per common share (“EPS”) is computed using the two-class method. Basic EPS is computed by dividing net income allocated to common shares by the weighted average number of common shares outstanding for the period, excluding any participating securities. Participating securities include unvested restricted shares. Unvested restricted shares are considered participating securities because holders of these securities receive non-forfeitable dividends at the same rate as the holders of the Corporation’s common stock. Diluted EPS is computed by dividing net income allocated to common shares adjusted for reallocation of undistributed earnings of unvested restricted shares by the weighted average number of common shares determined for the basic EPS plus the dilutive effect of common stock equivalents using the treasury stock method based on the average market price for the period.
v3.25.0.1
Share-Based Compensation (Policies)
 12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Share-Based Compensation

Share-Based Compensation. The Corporation may grant restricted stock awards, restricted stock units, and other stock based awards to plan participants, subject to forfeiture upon the occurrence of certain events until the dates specified in the participant’s award agreement. The Corporation accounts for forfeitures as they occur. While restricted stock is subject to forfeiture, restricted stock award participants may exercise full voting rights and will receive all dividends and other distributions paid with respect to the restricted shares. Dividend equivalent units with respect to restricted stock grants made after January 2023 will be deferred and paid at the time of vesting. Restricted stock units do not have voting rights and are provided dividend equivalents. The restricted stock granted under the 2019 Equity Incentive Plan (the “Plan”) is typically subject to a three or four year vesting period. Compensation expense for restricted stock is recognized over the requisite service period of three or four years for the entire award on a straight-line basis. Upon vesting of restricted stock, the benefit of tax deductions in excess of recognized compensation expense is reflected as an income tax benefit in the Consolidated Statements of Income.

The Corporation issues a combination of performance-based restricted stock units and restricted stock awards to plan participants. Vesting of the performance-based restricted stock units will be measured on Total Shareholder Return (“TSR”) and Return on Average Equity (“ROAE”) prior to 2023 or Return on Average Tangible Common Equity (“ROATCE”) for issuances after 2022, and will cliff-vest after a three-year measurement period based on the Corporation’s performance relative to a custom peer group. At the end of the performance period, the number of actual shares to be awarded varies between 0% and 200% of target amounts. Compensation expense is recognized for performance-based restricted stock units over the requisite service and performance period of generally three years for the entire expected award on a straight-line basis. The compensation expense for the awards expected to vest for the percentage of performance-based restricted stock units subject to the metric will be adjusted if there is a change in the expectation of metric. The compensation expense for the awards expected to vest for the percentage of performance-based restricted

stock units subject to the TSR metric are never adjusted, and are amortized utilizing the accounting fair value provided using a Monte Carlo pricing model.

The Corporation offers an Employee Stock Purchase Plan (“ESPP”) to all qualifying employees. The plan qualifies as an ESPP under section 423 of the Internal Revenue Code of 1986. Under the ESPP, eligible employees may enroll in a three month offer period that begins January, April, July, and October of each year. Employees may purchase a limited number of shares of the Corporation’s common stock at 90% of the fair market value on the last day of the offering period. The ESPP is treated as a compensatory plan for purposes of share-based compensation expense.
v3.25.0.1
Derivative Financial Instruments (Policies)
 12 Months Ended
Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments

Derivative Instruments. The Corporation uses derivative instruments to protect against the risk of adverse price or interest rate movements on the value of certain assets, liabilities, future cash flows, and economic hedges for written client derivative contracts. Derivative instruments represent contracts between parties that usually require little or no initial net investment and result in one party delivering cash to the other party based on a notional amount and an underlying variable, as specified in the contract, and may be subject to master netting agreements.

Market risk is the risk of loss arising from an adverse change in interest rates, exchange rates, or equity prices. The Corporation’s primary market risk is interest rate risk. Instruments designed to manage interest rate risk include interest rate swaps, interest rate options, and interest rate caps and floors with indices that relate to the pricing of specific assets and liabilities. The nature and volume of the derivative instruments used to manage interest rate risk depend on the level and type of assets and liabilities on the balance

sheet and the risk management strategies for the current and anticipated rate environments. Counterparty risk with respect to derivative instruments occurs when a counterparty to a derivative contract with an unrealized gain fails to perform according to the terms of the agreement. Counterparty risk is managed by limiting the counterparties to highly rated dealers, requiring collateral postings when values are in deficit positions, applying uniform credit standards to all activities with credit risk, and monitoring the size and the maturity structure of the derivative portfolio.

All derivative instruments are to be carried at fair value on the Consolidated Balance Sheets. The accounting for the gain or loss due to changes in the fair value of a derivative instrument depends on whether the derivative instrument qualifies as a hedge. If the derivative instrument does not qualify as a hedge, the gains or losses are reported in earnings when they occur. However, if the derivative instrument qualifies as a hedge, the accounting varies based on the type of risk being hedged. The Corporation utilizes interest rate swaps offered directly to qualified commercial borrowers, which do not qualify for hedge accounting, and therefore, all changes in fair value and gains and losses on these instruments are reported in earnings as they occur. The effects of netting arrangements are disclosed within the Notes of the Consolidated Financial Statements. The Corporation offers interest rate swap products directly to qualified commercial borrowers. The Corporation economically hedges client derivative transactions by entering into offsetting interest rate swap contracts executed with a third party. Derivative transactions executed as part of this program are not considered hedging instruments and are marked-to-market through earnings each period. The derivative contracts have mirror-image terms, which results in the positions’ changes in fair value offsetting through earnings each period. The credit risk and risk of non-performance embedded in the fair value calculations is different between the dealer counterparties and the commercial borrowers which may result in a difference in the changes in the fair value of the mirror-image swaps. The Corporation incorporates credit valuation adjustments to appropriately reflect both its own non-performance risk and the counterparty’s risk in the fair value measurements. When evaluating the fair value of its derivative contracts for the effects of non-performance and credit risk, the Corporation considers the impact of netting and any applicable credit enhancements such as collateral postings, thresholds and guarantees.

The Corporation also enters into interest rate swaps to manage interest rate risk and reduce the cost of match-funding certain long-term fixed rate loans. These derivative contracts are designated as a cash flow hedge as the receipt of floating interest from the counterparty is used to manage interest rate risk associated with forecasted issuances of wholesale deposits and short-term FHLB advances. The change in fair value of the hedging instrument is recorded in accumulated other comprehensive income.
v3.25.0.1
Securities (Tables)
 12 Months Ended
Dec. 31, 2024
Investments, Debt and Equity Securities [Abstract]  
Schedule of Available-for-sale Securities

The amortized cost and fair value of securities available-for-sale and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income were as follows:

 

 

 

As of December 31, 2024

 

 

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair Value

 

 

 

(In Thousands)

 

Available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasuries

 

$

4,989

 

 

$

—

 

 

$

(271

)

 

 

4,718

 

U.S. government agency securities -
   government-sponsored enterprises

 

 

3,500

 

 

 

—

 

 

 

(347

)

 

 

3,153

 

Municipal securities

 

 

39,997

 

 

 

—

 

 

 

(5,136

)

 

 

34,861

 

Residential mortgage-backed securities -
   government issued

 

 

125,571

 

 

 

470

 

 

 

(2,818

)

 

 

123,223

 

Residential mortgage-backed securities -
   government-sponsored enterprises

 

 

145,888

 

 

 

234

 

 

 

(11,357

)

 

 

134,765

 

Commercial mortgage-backed securities -
   government issued

 

 

2,665

 

 

 

—

 

 

 

(441

)

 

 

2,224

 

Commercial mortgage-backed securities -
   government-sponsored enterprises

 

 

43,033

 

 

 

24

 

 

 

(4,609

)

 

 

38,448

 

 

 

$

365,643

 

 

$

728

 

 

$

(24,979

)

 

$

341,392

 

 

 

 

 

As of December 31, 2023

 

 

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair Value

 

 

 

(In Thousands)

 

Available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasuries

 

$

14,158

 

 

$

7

 

 

$

(389

)

 

$

13,776

 

U.S. government agency securities -
   government-sponsored enterprises

 

 

27,986

 

 

 

35

 

 

 

(455

)

 

 

27,566

 

Municipal securities

 

 

40,407

 

 

 

—

 

 

 

(4,526

)

 

 

35,881

 

Residential mortgage-backed securities -
   government issued

 

 

69,441

 

 

 

1,000

 

 

 

(2,385

)

 

 

68,056

 

Residential mortgage-backed securities -
   government-sponsored enterprises

 

 

131,321

 

 

 

281

 

 

 

(10,769

)

 

 

120,833

 

Commercial mortgage-backed securities -
   government issued

 

 

2,995

 

 

 

—

 

 

 

(470

)

 

 

2,525

 

Commercial mortgage-backed securities -
   government-sponsored enterprises

 

 

32,774

 

 

 

65

 

 

 

(4,470

)

 

 

28,369

 

 

 

$

319,082

 

 

$

1,388

 

 

$

(23,464

)

 

$

297,006

 
Schedule of Held-to-maturity Securities

The amortized cost and fair value of securities held-to-maturity and the corresponding amounts of gross unrecognized gains and losses were as follows:

 

 

 

As of December 31, 2024

 

 

 

Amortized
Cost

 

 

Gross
Unrecognized
Gains

 

 

Gross
Unrecognized
Losses

 

 

Fair Value

 

 

 

(In Thousands)

 

Held-to-maturity:

 

 

 

 

 

 

 

 

 

 

 

 

Municipal securities

 

$

3,137

 

 

$

—

 

 

$

(38

)

 

$

3,099

 

Residential mortgage-backed securities -
   government issued

 

 

836

 

 

 

—

 

 

 

(48

)

 

 

788

 

Residential mortgage-backed securities -
   government-sponsored enterprises

 

 

766

 

 

 

—

 

 

 

(42

)

 

 

724

 

Commercial mortgage-backed securities -
   government-sponsored enterprises

 

 

2,002

 

 

 

—

 

 

 

(78

)

 

 

1,924

 

 

 

$

6,741

 

 

$

—

 

 

$

(206

)

 

$

6,535

 

 

 

 

As of December 31, 2023

 

 

 

Amortized
Cost

 

 

Gross
Unrecognized
Gains

 

 

Gross
Unrecognized
Losses

 

 

Fair Value

 

 

 

(In Thousands)

 

Held-to-maturity:

 

 

 

 

 

 

 

 

 

 

 

 

Municipal securities

 

$

4,210

 

 

$

4

 

 

$

(41

)

 

$

4,173

 

Residential mortgage-backed securities -
   government issued

 

 

1,211

 

 

 

—

 

 

 

(76

)

 

 

1,135

 

Residential mortgage-backed securities -
   government-sponsored enterprises

 

 

1,078

 

 

 

—

 

 

 

(53

)

 

 

1,025

 

Commercial mortgage-backed securities -
   government-sponsored enterprises

 

 

2,004

 

 

 

—

 

 

 

(82

)

 

 

1,922

 

 

 

$

8,503

 

 

$

4

 

 

$

(252

)

 

$

8,255

 
Schedule of Realized Gains and Losses on Sale of Securities

Total proceeds and gross realized gains and losses from sales of securities available-for-sale were as follows:

 

 

 

For the Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

 

 

(In Thousands)

 

Gross gains

 

$

—

 

 

$

68

 

 

$

—

 

Gross losses

 

 

(8

)

 

 

(113

)

 

 

—

 

Net losses on sale of available-for-sale securities

 

$

(8

)

 

$

(45

)

 

$

—

 

Proceeds from sale of available-for-sale securities

 

$

7,533

 

 

$

5,085

 

 

$

—

 

 
Summary of Amortized Cost and Fair Value by Contractual Maturity

The amortized cost and fair value of securities by contractual maturity at December 31, 2024 are shown below. Actual maturities may differ from contractual maturities because issuers have the right to call or prepay certain obligations with or without call or prepayment penalties.

 

 

 

Available-for-Sale

 

 

Held-to-Maturity

 

 

 

Amortized
Cost

 

 

Fair Value

 

 

Amortized
Cost

 

 

Fair Value

 

 

 

(In Thousands)

 

Due in one year or less

 

$

1,501

 

 

$

1,473

 

 

$

987

 

 

$

983

 

Due in one year through five years

 

 

18,145

 

 

 

16,902

 

 

 

2,150

 

 

 

2,116

 

Due in five through ten years

 

 

8,430

 

 

 

7,570

 

 

 

—

 

 

 

—

 

Due in over ten years

 

 

20,410

 

 

 

16,787

 

 

 

—

 

 

 

—

 

 

 

 

48,486

 

 

 

42,732

 

 

 

3,137

 

 

 

3,099

 

Residential mortgage-backed securities

 

 

271,459

 

 

 

257,988

 

 

 

1,602

 

 

 

1,512

 

Commercial mortgage-backed securities

 

 

45,698

 

 

 

40,672

 

 

 

2,002

 

 

 

1,924

 

 

 

$

365,643

 

 

$

341,392

 

 

$

6,741

 

 

$

6,535

 

 
Summary of Unrealized Loss for Securities Available-For-Sale

A summary of unrealized loss information for securities available-for-sale, categorized by security type and length of time for which the security has been in a continuous unrealized loss position, follows:

 

 

 

As of December 31, 2024

 

 

 

Less than 12 Months

 

 

12 Months or Longer

 

 

Total

 

 

 

Fair Value

 

 

Unrealized
Losses

 

 

Fair Value

 

 

Unrealized
Losses

 

 

Fair Value

 

 

Unrealized
Losses

 

 

 

(In Thousands)

 

Available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasuries

 

$

—

 

 

$

—

 

 

$

4,718

 

 

$

271

 

 

$

4,718

 

 

$

271

 

U.S. government agency securities -
   government- sponsored enterprises

 

 

—

 

 

 

—

 

 

 

3,153

 

 

 

347

 

 

 

3,153

 

 

 

347

 

Municipal securities

 

 

—

 

 

 

—

 

 

 

34,861

 

 

 

5,136

 

 

 

34,861

 

 

 

5,136

 

Residential mortgage-backed securities -
   government issued

 

 

40,320

 

 

 

374

 

 

 

18,999

 

 

 

2,444

 

 

 

59,319

 

 

 

2,818

 

Residential mortgage-backed securities -
   government-sponsored enterprises

 

 

43,907

 

 

 

995

 

 

 

71,103

 

 

 

10,362

 

 

 

115,010

 

 

 

11,357

 

Commercial mortgage-backed securities -
   government issued

 

 

—

 

 

 

—

 

 

 

2,224

 

 

 

441

 

 

 

2,224

 

 

 

441

 

Commercial mortgage-backed securities -
   government-sponsored enterprises

 

 

10,717

 

 

 

425

 

 

 

26,751

 

 

 

4,184

 

 

 

37,468

 

 

 

4,609

 

 

 

$

94,944

 

 

$

1,794

 

 

$

161,809

 

 

$

23,185

 

 

$

256,753

 

 

$

24,979

 

 

 

 

As of December 31, 2023

 

 

 

Less than 12 Months

 

 

12 Months or Longer

 

 

Total

 

 

 

Fair Value

 

 

Unrealized
Losses

 

 

Fair Value

 

 

Unrealized
Losses

 

 

Fair Value

 

 

Unrealized
Losses

 

 

 

(In Thousands)

 

Available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasuries

 

$

—

 

 

$

—

 

 

$

4,595

 

 

$

389

 

 

$

4,595

 

 

$

389

 

U.S. government agency securities -
   government- sponsored enterprises

 

 

13,370

 

 

 

30

 

 

 

3,076

 

 

 

425

 

 

 

16,446

 

 

 

455

 

Municipal securities

 

 

—

 

 

 

—

 

 

 

35,881

 

 

 

4,526

 

 

 

35,881

 

 

 

4,526

 

Residential mortgage-backed securities -
   government issued

 

 

13,178

 

 

 

160

 

 

 

13,819

 

 

 

2,225

 

 

 

26,997

 

 

 

2,385

 

Residential mortgage-backed securities -
   government-sponsored enterprises

 

 

19,925

 

 

 

285

 

 

 

78,086

 

 

 

10,484

 

 

 

98,011

 

 

 

10,769

 

Commercial mortgage-backed securities -
   government issued

 

 

—

 

 

 

—

 

 

 

2,525

 

 

 

470

 

 

 

2,525

 

 

 

470

 

Commercial mortgage-backed securities -
   government-sponsored enterprises

 

 

893

 

 

 

20

 

 

 

26,465

 

 

 

4,450

 

 

 

27,358

 

 

 

4,470

 

 

 

$

47,366

 

 

$

495

 

 

$

164,447

 

 

$

22,969

 

 

$

211,813

 

 

$

23,464

 

 
Summary of Unrecognized Loss for Securities Held-To-Maturity

A summary of unrecognized loss information for securities held-to-maturity, categorized by security type and length of time for which the security has been in a continuous unrealized loss position, follows:

 

 

 

As of December 31, 2024

 

 

 

Less than 12 Months

 

 

12 Months or Longer

 

 

Total

 

 

 

Fair Value

 

 

Unrecognized
Losses

 

 

Fair Value

 

 

Unrecognized
Losses

 

 

Fair Value

 

 

Unrecognized
Losses

 

 

 

(In Thousands)

 

Held-to-maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Municipal securities

 

$

454

 

 

$

5

 

 

$

2,139

 

 

$

33

 

 

$

2,593

 

 

$

38

 

Residential mortgage-backed
   securities - government issued

 

 

—

 

 

 

—

 

 

 

788

 

 

 

48

 

 

 

788

 

 

 

48

 

Residential mortgage-backed
   securities - government-
   sponsored enterprises

 

 

—

 

 

 

—

 

 

 

724

 

 

 

42

 

 

 

724

 

 

 

42

 

Commercial mortgage-backed
   securities - government-
   sponsored enterprises

 

 

—

 

 

 

—

 

 

 

1,924

 

 

 

78

 

 

 

1,924

 

 

 

78

 

 

 

$

454

 

 

$

5

 

 

$

5,575

 

 

$

201

 

 

$

6,029

 

 

$

206

 

 

 

 

As of December 31, 2023

 

 

 

Less than 12 Months

 

 

12 Months or Longer

 

 

Total

 

 

 

Fair Value

 

 

Unrecognized
Losses

 

 

Fair Value

 

 

Unrecognized
Losses

 

 

Fair Value

 

 

Unrecognized
Losses

 

 

 

(In Thousands)

 

Held-to-maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Municipal securities

 

$

1,424

 

 

$

4

 

 

$

2,234

 

 

$

37

 

 

$

3,658

 

 

$

41

 

Residential mortgage-backed
   securities - government issued

 

 

—

 

 

 

—

 

 

 

1,135

 

 

 

76

 

 

 

1,135

 

 

 

76

 

Residential mortgage-backed
   securities - government-
   sponsored enterprises

 

 

—

 

 

 

—

 

 

 

1,025

 

 

 

53

 

 

 

1,025

 

 

 

53

 

Commercial mortgage-backed
   securities - government-
   sponsored enterprises

 

 

—

 

 

 

—

 

 

 

1,922

 

 

 

82

 

 

 

1,922

 

 

 

82

 

 

 

$

1,424

 

 

$

4

 

 

$

6,316

 

 

$

248

 

 

$

7,740

 

 

$

252

 
v3.25.0.1
Loans, Lease Receivables, and Allowance for Credit Losses (Tables)
 12 Months Ended
Dec. 31, 2024
Receivables [Abstract]  
Loan and Lease Receivables Composition

Loan and lease receivables consist of the following:

 

 

 

December 31,
2024

 

 

December 31,
2023

 

 

 

(In Thousands)

 

Commercial real estate:

 

 

 

 

 

 

Commercial real estate — owner occupied

 

$

273,397

 

 

$

256,479

 

Commercial real estate — non-owner occupied

 

 

845,298

 

 

 

773,494

 

Construction

 

 

221,086

 

 

 

193,080

 

Multi-family

 

 

530,853

 

 

 

450,529

 

1-4 family

 

 

46,496

 

 

 

26,289

 

Total commercial real estate

 

 

1,917,130

 

 

 

1,699,871

 

Commercial and industrial

 

 

1,151,720

 

 

 

1,105,835

 

Consumer and other

 

 

45,000

 

 

 

44,312

 

Total gross loans and leases receivable

 

 

3,113,850

 

 

 

2,850,018

 

Less:

 

 

 

 

 

 

Allowance for credit losses

 

 

35,785

 

 

 

31,275

 

Deferred loan fees and costs, net

 

 

722

 

 

 

(243

)

Loans and leases receivable, net

 

$

3,077,343

 

 

$

2,818,986

 

 

 
Schedule of Related Party Transactions

Certain of the Corporation’s executive officers, directors, and their related interests are loan clients of the Bank. These loans to related parties are summarized below:

 

 

 

December 31, 2024

 

 

December 31, 2023

 

 

 

(In Thousands)

 

Balance at beginning of year

 

$

263

 

 

$

224

 

New loans

 

 

381

 

 

 

349

 

Repayments

 

 

(399

)

 

 

(310

)

Balance at end of year

 

$

245

 

 

$

263

 

 
Net Investment In Direct Financing Leases

The Corporation’s net investment in direct financing leases consists of the following:

 

 

 

December 31,

 

 

December 31,

 

 

 

2024

 

 

2023

 

 

 

(In Thousands)

 

Minimum lease payments receivable

 

$

8,975

 

 

$

9,660

 

Estimated unguaranteed residual values in leased property

 

 

632

 

 

 

1,468

 

Unearned lease and residual income

 

 

(1,148

)

 

 

(1,362

)

Investment in commercial direct financing leases

 

$

8,459

 

 

$

9,766

 

 
Summarr of Future Aggregate Maturities of Minimum Lease Payments to Be Received

Future aggregate maturities of minimum lease payments to be received are as follows:

 

(In Thousands)

 

 

 

Maturities during year ended December 31,

 

 

 

2025

 

$

3,108

 

2026

 

 

2,409

 

2027

 

 

1,898

 

2028

 

 

1,052

 

2029

 

469

 

Thereafter

 

39

 

 

 

$

8,975

 

 
Financing Receivable by Credit Quality Indicators

The following table illustrates ending balances of the Corporation’s loan and lease portfolio, including non-accrual loans by class of receivable, and considering certain credit quality indicators:

 

December 31, 2024

 

Term Loans Amortized Cost Basis by Origination Year

 

 

 

 

 

 

 

(In Thousands)

 

2024

 

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

Prior

 

 

Revolving
Loans
Amortized
Cost Basis

 

 

Total

 

Commercial real estate —
   owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I

 

$

26,508

 

 

$

45,066

 

 

$

42,849

 

 

$

34,486

 

 

$

37,078

 

 

$

85,405

 

 

$

447

 

 

$

271,839

 

II

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

III

 

 

750

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

217

 

 

 

—

 

 

 

967

 

IV

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

591

 

 

 

—

 

 

 

591

 

Total

 

$

27,258

 

 

$

45,066

 

 

$

42,849

 

 

$

34,486

 

 

$

37,078

 

 

$

86,213

 

 

$

447

 

 

$

273,397

 

Commercial real estate —
   non-owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I

 

$

80,371

 

 

$

85,651

 

 

$

89,181

 

 

$

69,129

 

 

$

85,238

 

 

$

340,802

 

 

$

37,129

 

 

$

787,501

 

II

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,150

 

 

 

31,720

 

 

 

—

 

 

 

33,870

 

III

 

 

—

 

 

 

638

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

23,289

 

 

 

—

 

 

 

23,927

 

IV

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

80,371

 

 

$

86,289

 

 

$

89,181

 

 

$

69,129

 

 

$

87,388

 

 

$

395,811

 

 

$

37,129

 

 

$

845,298

 

Construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I

 

$

36,135

 

 

$

110,437

 

 

$

24,302

 

 

$

1,183

 

 

$

719

 

 

$

5,520

 

 

$

28,205

 

 

$

206,501

 

II

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

III

 

 

—

 

 

 

—

 

 

 

454

 

 

 

8,155

 

 

 

5,713

 

 

 

263

 

 

 

—

 

 

 

14,585

 

IV

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

36,135

 

 

$

110,437

 

 

$

24,756

 

 

$

9,338

 

 

$

6,432

 

 

$

5,783

 

 

$

28,205

 

 

$

221,086

 

Multi-family

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I

 

$

40,079

 

 

$

102,886

 

 

$

74,753

 

 

$

66,775

 

 

$

97,303

 

 

$

134,331

 

 

$

2,288

 

 

$

518,415

 

II

 

 

—

 

 

 

—

 

 

 

7,407

 

 

 

2,584

 

 

 

—

 

 

 

1,043

 

 

 

—

 

 

 

11,034

 

III

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,404

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,404

 

IV

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

40,079

 

 

$

102,886

 

 

$

82,160

 

 

$

70,763

 

 

$

97,303

 

 

$

135,374

 

 

$

2,288

 

 

$

530,853

 

1-4 family

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I

 

$

15,220

 

 

$

4,200

 

 

$

7,005

 

 

$

2,336

 

 

$

2,282

 

 

$

2,178

 

 

$

13,275

 

 

$

46,496

 

II

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

III

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

IV

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

15,220

 

 

$

4,200

 

 

$

7,005

 

 

$

2,336

 

 

$

2,282

 

 

$

2,178

 

 

$

13,275

 

 

$

46,496

 

Commercial and industrial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I

 

$

259,976

 

 

$

216,621

 

 

$

93,119

 

 

$

52,066

 

 

$

23,960

 

 

$

27,370

 

 

$

405,499

 

 

$

1,078,611

 

II

 

 

316

 

 

 

2,700

 

 

 

2,657

 

 

 

—

 

 

 

470

 

 

 

8

 

 

 

7,676

 

 

 

13,827

 

III

 

 

4,205

 

 

 

5,418

 

 

 

3,909

 

 

 

1,379

 

 

 

2,446

 

 

 

3,957

 

 

 

10,192

 

 

 

31,506

 

IV

 

 

536

 

 

 

4,060

 

 

 

6,245

 

 

 

1,038

 

 

 

274

 

 

 

2,519

 

 

 

13,104

 

 

 

27,776

 

Total

 

$

265,033

 

 

$

228,799

 

 

$

105,930

 

 

$

54,483

 

 

$

27,150

 

 

$

33,854

 

 

$

436,471

 

 

$

1,151,720

 

Consumer and other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I

 

$

6,955

 

 

$

5,244

 

 

$

7,416

 

 

$

2,764

 

 

$

10,994

 

 

$

3,885

 

 

$

7,742

 

 

$

45,000

 

II

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

III

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

IV

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

6,955

 

 

$

5,244

 

 

$

7,416

 

 

$

2,764

 

 

$

10,994

 

 

$

3,885

 

 

$

7,742

 

 

$

45,000

 

Total Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I

 

$

465,244

 

 

$

570,105

 

 

$

338,625

 

 

$

228,739

 

 

$

257,574

 

 

$

599,491

 

 

$

494,585

 

 

$

2,954,363

 

II

 

 

316

 

 

 

2,700

 

 

 

10,064

 

 

 

2,584

 

 

 

2,620

 

 

 

32,771

 

 

 

7,676

 

 

 

58,731

 

III

 

 

4,955

 

 

 

6,056

 

 

 

4,363

 

 

 

10,938

 

 

 

8,159

 

 

 

27,726

 

 

 

10,192

 

 

 

72,389

 

IV

 

 

536

 

 

 

4,060

 

 

 

6,245

 

 

 

1,038

 

 

 

274

 

 

 

3,110

 

 

 

13,104

 

 

 

28,367

 

Total

 

$

471,051

 

 

$

582,921

 

 

$

359,297

 

 

$

243,299

 

 

$

268,627

 

 

$

663,098

 

 

$

525,557

 

 

$

3,113,850

 

 

 

December 31, 2023

 

Term Loans Amortized Cost Basis by Origination Year

 

 

 

 

 

 

 

(In Thousands)

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

Prior

 

 

Revolving
Loans
Amortized
Cost Basis

 

 

Total

 

Commercial real estate —
   owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I

 

$

31,637

 

 

$

43,156

 

 

$

38,803

 

 

$

44,704

 

 

$

22,078

 

 

$

72,774

 

 

$

451

 

 

$

253,603

 

II

 

 

—

 

 

 

—

 

 

 

—

 

 

 

260

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

260

 

III

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,616

 

 

 

—

 

 

 

2,616

 

IV

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

31,637

 

 

$

43,156

 

 

$

38,803

 

 

$

44,964

 

 

$

22,078

 

 

$

75,390

 

 

$

451

 

 

$

256,479

 

Commercial real estate —
   non-owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I

 

$

71,857

 

 

$

76,689

 

 

$

72,660

 

 

$

78,212

 

 

$

66,262

 

 

$

314,970

 

 

$

32,478

 

 

$

713,128

 

II

 

 

—

 

 

 

—

 

 

 

2,302

 

 

 

2,252

 

 

 

19,838

 

 

 

16,274

 

 

 

—

 

 

 

40,666

 

III

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

19,700

 

 

 

—

 

 

 

19,700

 

IV

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

71,857

 

 

$

76,689

 

 

$

74,962

 

 

$

80,464

 

 

$

86,100

 

 

$

350,944

 

 

$

32,478

 

 

$

773,494

 

Construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I

 

$

63,660

 

 

$

83,161

 

 

$

8,542

 

 

$

744

 

 

$

433

 

 

$

6,528

 

 

$

15,011

 

 

$

178,079

 

II

 

 

—

 

 

 

—

 

 

 

9,289

 

 

 

5,712

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

15,001

 

III

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

IV

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

63,660

 

 

$

83,161

 

 

$

17,831

 

 

$

6,456

 

 

$

433

 

 

$

6,528

 

 

$

15,011

 

 

$

193,080

 

Multi-family

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I

 

$

84,932

 

 

$

41,068

 

 

$

70,054

 

 

$

113,294

 

 

$

22,925

 

 

$

115,243

 

 

$

3,013

 

 

$

450,529

 

II

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

III

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

IV

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

84,932

 

 

$

41,068

 

 

$

70,054

 

 

$

113,294

 

 

$

22,925

 

 

$

115,243

 

 

$

3,013

 

 

$

450,529

 

1-4 family

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I

 

$

4,242

 

 

$

7,684

 

 

$

2,672

 

 

$

2,359

 

 

$

443

 

 

$

2,805

 

 

$

6,062

 

 

$

26,267

 

II

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

III

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

IV

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

22

 

 

 

—

 

 

 

22

 

Total

 

$

4,242

 

 

$

7,684

 

 

$

2,672

 

 

$

2,359

 

 

$

443

 

 

$

2,827

 

 

$

6,062

 

 

$

26,289

 

Commercial and industrial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I

 

$

302,612

 

 

$

144,167

 

 

$

85,504

 

 

$

38,164

 

 

$

20,151

 

 

$

26,490

 

 

$

415,301

 

 

$

1,032,389

 

II

 

 

1,496

 

 

 

5,280

 

 

 

785

 

 

 

353

 

 

 

94

 

 

 

219

 

 

 

5,706

 

 

 

13,933

 

III

 

 

1,093

 

 

 

7,168

 

 

 

1,882

 

 

 

5,919

 

 

 

3,861

 

 

 

3,957

 

 

 

15,058

 

 

 

38,938

 

IV

 

 

1,482

 

 

 

6,519

 

 

 

1,319

 

 

 

321

 

 

 

133

 

 

 

1,644

 

 

 

9,157

 

 

 

20,575

 

Total

 

$

306,683

 

 

$

163,134

 

 

$

89,490

 

 

$

44,757

 

 

$

24,239

 

 

$

32,310

 

 

$

445,222

 

 

$

1,105,835

 

Consumer and other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I

 

$

5,920

 

 

$

8,786

 

 

$

3,167

 

 

$

12,193

 

 

$

2,049

 

 

$

3,485

 

 

$

8,712

 

 

$

44,312

 

II

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

III

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

IV

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

5,920

 

 

$

8,786

 

 

$

3,167

 

 

$

12,193

 

 

$

2,049

 

 

$

3,485

 

 

$

8,712

 

 

$

44,312

 

Total Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I

 

$

564,860

 

 

$

404,711

 

 

$

281,402

 

 

$

289,670

 

 

$

134,341

 

 

$

542,295

 

 

$

481,028

 

 

$

2,698,307

 

II

 

 

1,496

 

 

 

5,280

 

 

 

12,376

 

 

 

8,577

 

 

 

19,932

 

 

 

16,493

 

 

 

5,706

 

 

 

69,860

 

III

 

 

1,093

 

 

 

7,168

 

 

 

1,882

 

 

 

5,919

 

 

 

3,861

 

 

 

26,273

 

 

 

15,058

 

 

 

61,254

 

IV

 

 

1,482

 

 

 

6,519

 

 

 

1,319

 

 

 

321

 

 

 

133

 

 

 

1,666

 

 

 

9,157

 

 

 

20,597

 

Total

 

$

568,931

 

 

$

423,678

 

 

$

296,979

 

 

$

304,487

 

 

$

158,267

 

 

$

586,727

 

 

$

510,949

 

 

$

2,850,018

 

 
Delinquency Aging of Loan and Lease Portfolio by Class of Receivable

The delinquency aging of the loan and lease portfolio by class of receivable was as follows:

 

 

 

December 31, 2024

 

 

 

30-59
Days Past
Due

 

 

60-89
Days Past
Due

 

 

Greater
Than 90
Days Past
Due

 

 

Total Past
Due

 

 

Current

 

 

Total
Loans and
Leases

 

 

 

(Dollars in Thousands)

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner occupied

 

$

1,102

 

 

$

—

 

 

$

—

 

 

$

1,102

 

 

$

272,295

 

 

$

273,397

 

Non-owner occupied

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

845,298

 

 

 

845,298

 

Construction

 

 

14,321

 

 

 

263

 

 

 

—

 

 

 

14,584

 

 

 

206,502

 

 

 

221,086

 

Multi-family

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

530,853

 

 

 

530,853

 

1-4 family

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

46,496

 

 

 

46,496

 

Commercial and industrial

 

 

5,405

 

 

 

1,072

 

 

 

18,984

 

 

 

25,461

 

 

 

1,126,259

 

 

 

1,151,720

 

Consumer and other

 

 

—

 

 

 

10

 

 

 

—

 

 

 

10

 

 

 

44,990

 

 

 

45,000

 

Total

 

$

20,828

 

 

$

1,345

 

 

$

18,984

 

 

$

41,157

 

 

$

3,072,693

 

 

$

3,113,850

 

Percent of portfolio

 

 

0.67

%

 

 

0.04

%

 

 

0.61

%

 

 

1.32

%

 

 

98.68

%

 

 

100.00

%

 

 

 

 

December 31, 2023

 

 

 

30-59
Days Past
Due

 

 

60-89
Days Past
Due

 

 

Greater
Than 90
Days Past
Due

 

 

Total Past
Due

 

 

Current

 

 

Total
Loans and
Leases

 

 

 

(Dollars in Thousands)

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner occupied

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

256,479

 

 

$

256,479

 

Non-owner occupied

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

773,494

 

 

 

773,494

 

Construction

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

193,080

 

 

 

193,080

 

Multi-family

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

450,529

 

 

 

450,529

 

1-4 family

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

26,289

 

 

 

26,289

 

Commercial and industrial

 

 

3,430

 

 

 

1,041

 

 

 

18,347

 

 

 

22,818

 

 

 

1,083,017

 

 

 

1,105,835

 

Consumer and other

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

44,312

 

 

 

44,312

 

Total

 

$

3,430

 

 

$

1,041

 

 

$

18,347

 

 

$

22,818

 

 

$

2,827,200

 

 

$

2,850,018

 

Percent of portfolio

 

 

0.12

%

 

 

0.04

%

 

 

0.64

%

 

 

0.80

%

 

 

99.20

%

 

 

100.00

%
Schedule of Financing Receivables, Non-Performing Status

The following tables provide additional detail on loans on non-accrual status and loans past due over 89 days still accruing as of:

 

 

 

December 31, 2024

 

 

 

Non-accrual
With No
Allowance for
Credit Loss

 

 

Non-accrual
With
Allowance
for Credit
Loss

 

 

Loans Past
Due Over
89 Days
Still Accruing

 

 

 

(In Thousands)

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

Commercial real estate — owner occupied

 

$

—

 

 

$

591

 

 

$

—

 

Commercial real estate — non-owner occupied

 

 

—

 

 

 

—

 

 

 

—

 

Construction

 

 

—

 

 

 

—

 

 

 

—

 

Multi-family

 

 

—

 

 

 

—

 

 

 

—

 

1-4 family

 

 

—

 

 

 

—

 

 

 

—

 

Total commercial real estate

 

 

—

 

 

 

591

 

 

 

—

 

Commercial and industrial

 

 

13,125

 

 

 

14,651

 

 

 

—

 

Consumer and other

 

 

—

 

 

 

—

 

 

 

—

 

Total non-accrual loans and leases

 

$

13,125

 

 

$

15,242

 

 

$

—

 

 

 

 

December 31, 2023

 

 

 

Non-accrual
With No
Allowance for
Credit Loss

 

 

Non-accrual
With
Allowance
for Credit
Loss

 

 

Loans Past
Due Over
89 Days
Still Accruing

 

 

 

(In Thousands)

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

Commercial real estate — owner occupied

 

$

—

 

 

$

—

 

 

$

—

 

Commercial real estate — non-owner occupied

 

 

—

 

 

 

—

 

 

 

—

 

Construction

 

 

—

 

 

 

—

 

 

 

—

 

Multi-family

 

 

—

 

 

 

—

 

 

 

—

 

1-4 family

 

 

—

 

 

 

22

 

 

 

—

 

Total commercial real estate

 

 

—

 

 

 

22

 

 

 

—

 

Commercial and industrial

 

 

9,691

 

 

 

10,884

 

 

 

—

 

Consumer and other

 

 

—

 

 

 

—

 

 

 

—

 

Total non-accrual loans and leases

 

$

9,691

 

 

$

10,906

 

 

$

—

 

 

 

 

December 31,
2024

 

 

December 31,
2023

 

Total non-accrual loans and leases to gross loans
   and leases

 

 

0.91

%

 

 

0.72

%

Allowance for credit losses to gross loans and leases

 

 

1.20

 

 

 

1.16

 

Allowance for credit losses to non-accrual loans
   and leases

 

 

131.38

 

 

 

160.21

 
Schedule of Collateral Dependent Loans

The following table presents the amortized cost basis of the non-accrual, collateral-dependent commercial and industrial loans as of:

 

 

 

December 31,
2024

 

 

December 31,
2023

 

 

 

(In Thousands)

 

Inventory

 

$

—

 

 

$

8,879

 

Equipment

 

 

18,185

 

 

 

8,903

 

Real Estate

 

 

926

 

 

 

46

 

Accounts Receivable

 

 

6,570

 

 

 

278

 

Other

 

 

821

 

 

 

1,348

 

Total

 

$

26,502

 

 

$

19,454

 
Summary of Financial Difficulty and Modification Type

The following table presents the amortized cost basis of loans at December 31, 2024 that were both experiencing financial difficulty and modified during the years ended December 31, 2024 and 2023, by class and by type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized costs basis of each class of financing receivable is also presented below.

 

 

 

For the Year Ended December 31, 2024

 

 

Principal
Forgiveness

 

Payment
Delay

 

Term
Extension

 

Interest Rate
Reduction

 

Combination Term Extension and Payment Delay

 

Total

 

Total Class
of Financing
Receivable

 

 

(In Thousands)

 

 

Commercial real estate

 

$—

 

$5,901

 

$—

 

$—

 

$—

 

$5,901

 

0.31%

Commercial and industrial

 

—

 

7,108

 

455

 

—

 

550

 

8,113

 

0.70

Total

 

$—

 

$13,009

 

$455

 

$—

 

$550

 

$14,014

 

0.45%

 

 

 

For the Year Ended December 31, 2023

 

 

Principal
Forgiveness

 

Payment
Delay

 

Term
Extension

 

Interest Rate
Reduction

 

Combination Term Extension and Payment Delay

 

Total

 

Total Class
of Financing
Receivable

 

 

(In Thousands)

 

 

Commercial real estate

 

$—

 

$—

 

$—

 

$—

 

$—

 

$—

 

0.00%

Commercial and industrial

 

—

 

882

 

—

 

—

 

—

 

882

 

0.08

Total

 

$—

 

$882

 

$—

 

$—

 

$—

 

$882

 

0.03%

 

The Corporation closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents the performance of such loans that have been modified in the last 12 months:

 

 

 

For the Year Ended December 31, 2024

 

 

 

30-59
Days Past
Due

 

 

60-89
Days Past
Due

 

 

Greater
Than 90
Days Past
Due

 

 

Total Past
Due

 

 

 

(Dollars in Thousands)

 

Commercial real estate

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Commercial and industrial

 

 

—

 

 

 

—

 

 

 

410

 

 

 

410

 

Total

 

$

—

 

 

$

—

 

 

$

410

 

 

$

410

 

 

 

 

For the Year Ended December 31, 2023

 

 

 

30-59
Days Past
Due

 

 

60-89
Days Past
Due

 

 

Greater
Than 90
Days Past
Due

 

 

Total Past
Due

 

 

 

(Dollars in Thousands)

 

Commercial real estate

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Commercial and industrial

 

 

—

 

 

 

—

 

 

 

382

 

 

 

382

 

Total

 

$

—

 

 

$

—

 

 

$

382

 

 

$

382

 

 

The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the years ended December 31, 2024 and 2023:

 

 

 

For the Year Ended December 31, 2024

 

(Dollars in Thousands)

 

Principal
Forgiveness

 

 

Weighted
Average
Interest Rate
Reduction

 

 

Weighted
Average Term
Extension
(years)

 

 

Weighted
Average
Payment Delay
(years)

 

Commercial real estate

 

$

—

 

 

$

—

 

 

 

0.00

 

 

 

1.17

 

Commercial and industrial

 

 

—

 

 

 

—

 

 

 

0.78

 

 

 

0.73

 

Total

 

$

—

 

 

$

—

 

 

 

0.78

 

 

 

1.90

 

 

 

 

For the Year Ended December 31, 2023

 

(Dollars in Thousands)

 

Principal
Forgiveness

 

 

Weighted
Average
Interest Rate
Reduction

 

 

Weighted
Average Term
Extension
(years)

 

 

Weighted
Average
Payment Delay
(years)

 

Commercial real estate

 

$

—

 

 

$

—

 

 

 

0.00

 

 

 

0.00

 

Commercial and industrial

 

 

—

 

 

 

—

 

 

 

0.00

 

 

 

0.52

 

Total

 

$

—

 

 

$

—

 

 

 

0.00

 

 

 

0.52

 
Schedule of Amortized Cost Basis of Loans That Had Payment Default

The following table presents the amortized cost basis of loans that had a payment default during the years ended December 31, 2024 and 2023 and were modified in the 12 months prior to that default to borrowers experience financial difficulty:

 

 

 

For the Year Ended December 31, 2024

 

 

 

Principal
Forgiveness

 

 

Payment Delay

 

 

Term Extension

 

 

Interest Rate
Reduction

 

 

 

(In Thousands)

 

Commercial real estate

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Commercial and industrial

 

 

—

 

 

 

753

 

 

 

—

 

 

 

—

 

Total

 

$

—

 

 

$

753

 

 

$

—

 

 

$

—

 

 

 

 

For the Year Ended December 31, 2023

 

 

 

Principal
Forgiveness

 

 

Payment Delay

 

 

Term Extension

 

 

Interest Rate
Reduction

 

 

 

(In Thousands)

 

Commercial real estate

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Commercial and industrial

 

 

—

 

 

 

382

 

 

 

—

 

 

 

—

 

Total

 

$

—

 

 

$

382

 

 

$

—

 

 

$

—

 
Summary of Activity in Allowance for Credit Losses by Portfolio Segment

A summary of the activity in the allowance for credit losses by portfolio segment is as follows:

 

 

 

As of and for the Year Ended December 31, 2024

 

 

 

Owner
Occupied

 

 

Non-Owner
Occupied

 

 

Construction

 

 

Multi-
Family

 

 

1-4 Family

 

 

Commercial
and
Industrial

 

 

Consumer
and Other

 

 

Total

 

 

 

(In Thousands)

 

Beginning balance

 

$

1,540

 

 

$

5,636

 

 

$

2,125

 

 

$

3,571

 

 

$

266

 

 

$

19,408

 

 

$

451

 

 

$

32,997

 

Charge-offs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(5,233

)

 

 

(22

)

 

 

(5,255

)

Recoveries

 

 

5

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

132

 

 

 

541

 

 

 

21

 

 

 

699

 

Net recoveries (charge-offs)

 

 

5

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

132

 

 

 

(4,692

)

 

 

(1

)

 

 

(4,556

)

Provision for credit losses

 

 

84

 

 

 

256

 

 

 

701

 

 

 

1,042

 

 

 

125

 

 

 

6,754

 

 

 

(135

)

 

 

8,827

 

Ending balance

 

$

1,629

 

 

$

5,892

 

 

$

2,826

 

 

$

4,613

 

 

$

523

 

 

$

21,470

 

 

$

315

 

 

$

37,268

 

Components:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses on
   loans

 

$

1,615

 

 

$

5,843

 

 

$

2,022

 

 

$

4,597

 

 

$

492

 

 

$

20,934

 

 

$

282

 

 

$

35,785

 

Allowance for credit losses on
   unfunded credit commitments

 

 

14

 

 

 

49

 

 

 

804

 

 

 

16

 

 

 

31

 

 

 

536

 

 

 

33

 

 

 

1,483

 

Total ACL

 

$

1,629

 

 

$

5,892

 

 

$

2,826

 

 

$

4,613

 

 

$

523

 

 

$

21,470

 

 

$

315

 

 

$

37,268

 

 

 

 

As of and for the Year Ended December 31, 2023

 

 

 

Owner
Occupied

 

 

Non-Owner
Occupied

 

 

Construction

 

 

Multi-
Family

 

 

1-4 Family

 

 

Commercial
and
Industrial

 

 

Consumer
and Other

 

 

Total

 

 

 

(In Thousands)

 

Beginning balance

 

$

1,766

 

 

$

5,108

 

 

$

1,646

 

 

$

2,634

 

 

$

207

 

 

$

12,403

 

 

$

466

 

 

$

24,230

 

Impact of adopting ASC 326

 

 

(204

)

 

 

(242

)

 

 

796

 

 

 

(386

)

 

 

(45

)

 

 

1,873

 

 

 

26

 

 

 

1,818

 

Charge-offs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,781

)

 

 

—

 

 

 

(1,781

)

Recoveries

 

 

9

 

 

 

1

 

 

 

—

 

 

 

—

 

 

 

40

 

 

 

478

 

 

 

20

 

 

 

548

 

Net recoveries (charge-offs)

 

 

9

 

 

 

1

 

 

 

—

 

 

 

—

 

 

 

40

 

 

 

(1,303

)

 

 

20

 

 

 

(1,233

)

Provision for credit losses

 

 

(31

)

 

 

769

 

 

 

(317

)

 

 

1,323

 

 

 

64

 

 

 

6,435

 

 

 

(61

)

 

 

8,182

 

Ending balance

 

$

1,540

 

 

$

5,636

 

 

$

2,125

 

 

$

3,571

 

 

$

266

 

 

$

19,408

 

 

$

451

 

 

$

32,997

 

Components:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses on
   loans

 

$

1,525

 

 

$

5,596

 

 

$

1,244

 

 

$

3,562

 

 

$

243

 

 

$

18,710

 

 

$

395

 

 

$

31,275

 

Allowance for credit losses on
   unfunded credit commitments

 

 

15

 

 

 

40

 

 

 

881

 

 

 

9

 

 

 

23

 

 

 

698

 

 

 

56

 

 

 

1,722

 

Total ACL

 

$

1,540

 

 

$

5,636

 

 

$

2,125

 

 

$

3,571

 

 

$

266

 

 

$

19,408

 

 

$

451

 

 

$

32,997

 

 

 

 

As of and for the Year Ended December 31, 2022

 

 

 

Commercial Real Estate

 

 

Commercial and Industrial

 

 

Consumer and Other

 

 

Total

 

 

 

(In Thousands)

 

Beginning balance

 

$

15,110

 

 

$

8,413

 

 

$

813

 

 

$

24,336

 

Charge-offs

 

 

—

 

 

 

(958

)

 

 

(21

)

 

 

(979

)

Recoveries

 

 

4,262

 

 

 

437

 

 

 

42

 

 

 

4,741

 

Net recoveries (charge-offs)

 

 

4,262

 

 

 

(521

)

 

 

21

 

 

 

3,762

 

Provision for credit losses

 

 

(6,812

)

 

 

3,236

 

 

 

(292

)

 

 

(3,868

)

Ending balance

 

$

12,560

 

 

$

11,128

 

 

$

542

 

 

$

24,230

 

 
Allowance for Credit Losses and Balances by Type of Allowance Methodology

The following tables provide information regarding the allowance for credit losses and balances by type of allowance methodology.

 

 

 

As of December 31, 2024

 

 

 

Owner
Occupied

 

 

Non-Owner
Occupied

 

 

Construction

 

 

Multi-
Family

 

 

1-4 Family

 

 

Commercial
and
Industrial

 

 

Consumer
and Other

 

 

Total

 

 

 

(In Thousands)

 

Allowance for credit losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collectively evaluated for
   credit losses

 

$

1,615

 

 

$

5,843

 

 

$

2,022

 

 

$

4,597

 

 

$

492

 

 

$

12,016

 

 

$

282

 

 

$

26,867

 

Individually evaluated for
   credit loss

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

8,918

 

 

 

—

 

 

 

8,918

 

Total

 

$

1,615

 

 

$

5,843

 

 

$

2,022

 

 

$

4,597

 

 

$

492

 

 

$

20,934

 

 

$

282

 

 

$

35,785

 

Loans and lease receivables:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collectively evaluated for
   credit losses

 

$

272,806

 

 

$

845,298

 

 

$

221,086

 

 

$

530,853

 

 

$

46,496

 

 

$

1,123,944

 

 

$

45,000

 

 

$

3,085,483

 

Individually evaluated for
   credit loss

 

 

591

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

27,776

 

 

 

—

 

 

 

28,367

 

Total

 

$

273,397

 

 

$

845,298

 

 

$

221,086

 

 

$

530,853

 

 

$

46,496

 

 

$

1,151,720

 

 

$

45,000

 

 

$

3,113,850

 

 

 

 

As of December 31, 2023

 

 

 

Owner
Occupied

 

 

Non-Owner
Occupied

 

 

Construction

 

 

Multi-
Family

 

 

1-4 Family

 

 

Commercial
and
Industrial

 

 

Consumer
and Other

 

 

Total

 

 

 

(In Thousands)

 

Allowance for credit losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collectively evaluated for
   credit losses

 

$

1,525

 

 

$

5,596

 

 

$

1,244

 

 

$

3,562

 

 

$

221

 

 

$

12,743

 

 

$

395

 

 

$

25,286

 

Individually evaluated for
   credit loss

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

22

 

 

 

5,967

 

 

 

—

 

 

 

5,989

 

Total

 

$

1,525

 

 

$

5,596

 

 

$

1,244

 

 

$

3,562

 

 

$

243

 

 

$

18,710

 

 

$

395

 

 

$

31,275

 

Loans and lease receivables:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collectively evaluated for
   credit losses

 

$

256,479

 

 

$

773,494

 

 

$

193,080

 

 

$

450,529

 

 

$

26,267

 

 

$

1,085,260

 

 

$

44,312

 

 

$

2,829,421

 

Individually evaluated for
   credit loss

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

22

 

 

 

20,575

 

 

 

—

 

 

 

20,597

 

Total

 

$

256,479

 

 

$

773,494

 

 

$

193,080

 

 

$

450,529

 

 

$

26,289

 

 

$

1,105,835

 

 

$

44,312

 

 

$

2,850,018

 
v3.25.0.1
Premises and Equipment (Tables)
 12 Months Ended
Dec. 31, 2024
Property, Plant and Equipment [Abstract]  
Summary of Premises and Equipment

A summary of premises and equipment was as follows:

 

 

As of December 31,

 

 

2024

 

 

2023

 

 

(In Thousands)

 

Leasehold improvements

 

$

5,572

 

 

$

5,557

 

Furniture and equipment

 

 

9,480

 

 

 

9,361

 

Total premises and equipment

 

 

15,052

 

 

 

14,918

 

Less: accumulated depreciation

 

 

(9,825

)

 

 

(8,728

)

Total premises and equipment, net

 

$

5,227

 

 

$

6,190

 

 
v3.25.0.1
Leases (Tables)
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Components of Lease expense

The components of total lease expense were as follows:

 

 

 

For the Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

 

 

(In Thousands)

 

Operating lease cost

 

$

1,366

 

 

$

1,411

 

 

$

1,544

 

Short-term lease cost

 

 

140

 

 

 

200

 

 

 

148

 

Variable lease cost

 

 

572

 

 

 

576

 

 

 

604

 

Less: sublease income

 

 

—

 

 

 

(75

)

 

 

(179

)

Total lease cost, net

 

$

2,078

 

 

$

2,112

 

 

$

2,117

 
Operating Lease Quantitative Information

Quantitative information regarding the Corporation’s operating leases was as follows:

 

 

 

December 31, 2024

 

 

December 31, 2023

 

 

December 31, 2022

 

Weighted-average remaining lease term (in years)

 

 

6.93

 

 

 

7.70

 

 

 

8.06

 

Weighted-average discount rate

 

 

3.37

%

 

 

3.61

%

 

 

3.40

%
Maturity of Operating Lease Liabilities

The following maturity analysis shows the undiscounted cash flows due on the Corporation’s operating lease liabilities:

 

(In Thousands)

 

 

 

2025

 

$

1,488

 

2026

 

 

1,448

 

2027

 

 

1,469

 

2028

 

 

1,113

 

2029

 

 

792

 

Thereafter

 

 

2,808

 

Total undiscounted cash flows

 

 

9,118

 

Discount on cash flows

 

 

(1,192

)

Total lease liability

 

$

7,926

 
v3.25.0.1
Goodwill and Other Intangible Assets (Tables)
 12 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Servicing Asset and Related Valuation Allowance

Activity in the Corporation's servicing asset and related valuation allowance is as follows:

 

 

For the Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

 

 

(In Thousands)

 

Loan Servicing Rights:

 

 

 

 

 

 

 

 

 

Carrying amount, net, beginning of year

 

$

1,356

 

 

$

1,492

 

 

$

1,601

 

Additions

 

 

390

 

 

 

437

 

 

 

525

 

Amortization

 

 

(537

)

 

 

(500

)

 

 

(634

)

Change in valuation allowance

 

 

36

 

 

 

(73

)

 

 

—

 

Carrying amount, net, end of year

 

$

1,245

 

 

$

1,356

 

 

$

1,492

 

 

 

 

 

 

 

 

 

 

 

Valuation Allowance:

 

 

 

 

 

 

 

 

 

Beginning of year

 

$

88

 

 

$

15

 

 

$

15

 

Change in valuation allowance

 

 

(36

)

 

 

73

 

 

 

—

 

End of year

 

$

52

 

 

$

88

 

 

$

15

 
v3.25.0.1
Other Assets (Tables)
 12 Months Ended
Dec. 31, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Summary of Accrued Interest Receivable and Other Assets

A summary of accrued interest receivable and other assets was as follows:

 

 

 

December 31, 2024

 

 

December 31, 2023

 

 

 

(In Thousands)

 

Accrued interest receivable

 

$

12,879

 

 

$

13,275

 

Net deferred tax asset

 

 

12,599

 

 

 

9,508

 

Investment in historic development entities

 

 

4,133

 

 

 

2,393

 

Investment in low-income housing development entities

 

 

40,259

 

 

 

33,303

 

Investment in limited partnerships

 

 

14,680

 

 

 

15,027

 

Prepaid expenses

 

 

4,221

 

 

 

4,269

 

Other assets

 

 

10,288

 

 

 

13,283

 

Total accrued interest receivable and other assets

 

$

99,059

 

 

$

91,058

 

 
v3.25.0.1
Deposits (Tables)
 12 Months Ended
Dec. 31, 2024
Deposits [Abstract]  
Schedule of Deposits Composition

The composition of deposits is shown below. Average balances represent year-to-date averages.

 

 

 

December 31, 2024

 

 

December 31, 2023

 

 

 

Balance

 

 

Average
Balance

 

 

Average
Rate

 

 

Balance

 

 

Average
Balance

 

 

Average
Rate

 

 

 

(Dollars in Thousands)

 

Non-interest-bearing transaction accounts

 

$

436,111

 

 

$

441,313

 

 

 

—

%

 

$

445,376

 

 

$

453,930

 

 

 

—

%

Interest-bearing transaction accounts

 

 

965,637

 

 

 

884,321

 

 

 

3.82

 

 

 

895,319

 

 

 

689,500

 

 

 

3.44

 

Money market accounts

 

 

809,695

 

 

 

815,603

 

 

 

3.95

 

 

 

711,245

 

 

 

681,336

 

 

 

3.25

 

Certificates of deposit

 

 

184,986

 

 

 

237,228

 

 

 

4.59

 

 

 

287,131

 

 

 

273,387

 

 

 

4.10

 

Wholesale deposits

 

 

710,711

 

 

 

515,196

 

 

 

4.09

 

 

 

457,708

 

 

 

346,285

 

 

 

4.14

 

Total deposits

 

$

3,107,140

 

 

$

2,893,661

 

 

 

3.37

 

 

$

2,796,779

 

 

$

2,444,438

 

 

 

2.92

 
Time Deposit by Maturity

A summary of annual maturities of core and wholesale certificates of deposit at December 31, 2024 is as follows:

 

(In Thousands)

 

 

 

Maturities during the year ended December 31,

 

 

 

2025

 

$

519,303

 

2026

 

 

76,281

 

2027

 

 

79,850

 

2028

 

 

18,102

 

2029

 

 

5,782

 

Thereafter

 

 

1,290

 

 

 

$

700,608

 
v3.25.0.1
FHLB Advances, Other Borrowings and Subordinated Notes and Debentures (Tables)
 12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
Composition of Borrowed Funds

The composition of borrowed funds is shown below. Average balances represent year-to-date averages.

 

 

 

December 31, 2024

 

 

December 31, 2023

 

 

 

Balance

 

 

Weighted
Average
Balance

 

 

Weighted
Average
Rate

 

 

Balance

 

 

Weighted
Average
Balance

 

 

Weighted
Average
Rate

 

 

 

(Dollars in Thousands)

 

Federal funds purchased

 

$

—

 

 

$

2

 

 

 

38.40

%

 

$

—

 

 

$

3

 

 

 

5.37

%

FHLB advances

 

 

265,350

 

 

 

282,437

 

 

 

2.73

 

 

 

281,500

 

 

 

351,990

 

 

 

2.52

 

Line of credit

 

 

—

 

 

 

1,229

 

 

 

8.03

 

 

 

—

 

 

 

38

 

 

 

7.26

 

Other borrowings

 

 

10

 

 

 

8

 

 

 

—

 

 

 

20

 

 

 

600

 

 

 

8.33

 

Subordinated notes and debentures

 

 

54,689

 

 

 

49,833

 

 

 

6.36

 

 

 

49,396

 

 

 

38,250

 

 

 

5.16

 

 

 

$

320,049

 

 

$

333,509

 

 

 

3.30

 

 

$

330,916

 

 

$

390,881

 

 

 

2.79

 

 
Summary of Annual Maturities of Borrowing

A summary of annual maturities of borrowings at December 31, 2024 is as follows:

 

(In Thousands)

 

 

 

Maturities during the year ended December 31,

 

 

 

2025

 

$

116,410

 

2026

 

 

65,000

 

2027

 

 

10,000

 

2028

 

 

10,450

 

2029

 

 

35,000

 

Thereafter

 

 

83,189

 

 

 

$

320,049

 
v3.25.0.1
Regulatory Capital (Tables)
 12 Months Ended
Dec. 31, 2024
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]  
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations The following tables summarize both the Corporation’s and the Bank’s capital ratios and the ratios required by their federal regulators:

 

 

 

As of December 31, 2024

 

 

 

Actual (1)

 

 

Minimum Required
for Capital
Adequacy Purposes

 

 

For Capital
Adequacy Purposes
Plus Capital
Conservation Buffer

 

 

Minimum Required
to Be Well
Capitalized Under
Prompt Corrective
Action
Requirements

 

 

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

 

 

(Dollars in Thousands)

 

Total capital
   (to risk-weighted assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

$

421,639

 

 

 

12.08

%

$

279,330

 

 

 

8.00

%

$

366,621

 

 

 

10.50

%

 

N/A

 

 

N/A

 

First Business Bank

 

 

417,965

 

 

 

11.97

 

 

 

279,342

 

 

 

8.00

 

 

 

366,636

 

 

 

10.50

 

 

$

349,177

 

 

 

10.00

%

Tier 1 capital
   (to risk-weighted assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

$

329,796

 

 

 

9.45

%

 

$

209,498

 

 

 

6.00

%

 

$

296,788

 

 

 

8.50

%

 

N/A

 

 

N/A

 

First Business Bank

 

 

380,811

 

 

 

10.91

 

 

 

209,506

 

 

 

6.00

 

 

 

296,801

 

 

 

8.50

 

 

$

279,342

 

 

 

8.00

%

Common equity tier 1 capital
   (to risk-weighted assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

$

317,804

 

 

 

9.10

%

 

$

157,123

 

 

 

4.50

%

 

$

244,414

 

 

 

7.00

%

 

N/A

 

 

N/A

 

First Business Bank

 

 

380,811

 

 

 

10.91

 

 

 

157,130

 

 

 

4.50

 

 

 

244,424

 

 

 

7.00

 

 

$

226,965

 

 

 

6.50

%

Tier 1 leverage capital
   (to adjusted assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

$

329,796

 

 

 

8.78

%

 

$

150,256

 

 

 

4.00

%

 

$

150,256

 

 

 

4.00

%

 

N/A

 

 

N/A

 

First Business Bank

 

 

380,811

 

 

 

10.14

 

 

 

150,207

 

 

 

4.00

 

 

 

150,207

 

 

 

4.00

 

 

$

187,759

 

 

 

5.00

%

 

 

 

 

As of December 31, 2023

 

 

 

Actual (1)

 

 

Minimum Required
for Capital
Adequacy Purposes

 

 

For Capital
Adequacy Purposes
Plus Capital
Conservation Buffer

 

 

Minimum Required
to Be Well
Capitalized Under
Prompt Corrective
Action
Requirements

 

 

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

 

 

(Dollars in Thousands)

 

Total capital
   (to risk-weighted assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

$

375,440

 

 

 

11.19

%

 

$

268,500

 

 

 

8.00

%

 

$

352,406

 

 

 

10.50

%

 

N/A

 

 

N/A

 

First Business Bank

 

 

376,310

 

 

 

11.21

 

 

 

268,595

 

 

 

8.00

 

 

 

352,531

 

 

 

10.50

 

 

$

335,744

 

 

 

10.00

%

Tier 1 capital
   (to risk-weighted assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

$

293,338

 

 

 

8.74

%

 

$

201,375

 

 

 

6.00

%

 

$

285,281

 

 

 

8.50

%

 

N/A

 

 

N/A

 

First Business Bank

 

 

343,604

 

 

 

10.23

 

 

 

201,446

 

 

 

6.00

 

 

 

285,382

 

 

 

8.50

 

 

$

268,595

 

 

 

8.00

%

Common equity tier 1 capital
   (to risk-weighted assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

$

281,346

 

 

 

8.38

%

 

$

151,031

 

 

 

4.50

%

 

$

234,937

 

 

 

7.00

%

 

N/A

 

 

N/A

 

First Business Bank

 

 

343,604

 

 

 

10.23

 

 

 

151,085

 

 

 

4.50

 

 

 

235,021

 

 

 

7.00

 

 

$

218,233

 

 

 

6.50

%

Tier 1 leverage capital
   (to adjusted assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

$

293,338

 

 

 

8.43

%

 

$

139,145

 

 

 

4.00

%

 

$

139,145

 

 

 

4.00

%

 

N/A

 

 

N/A

 

First Business Bank

 

 

343,604

 

 

 

9.87

 

 

 

139,262

 

 

 

4.00

 

 

 

139,262

 

 

 

4.00

 

 

$

174,077

 

 

 

5.00

%

 

(1)
2024 and 2023 capital amounts include $676,000 and $1.0 million, respectively, of additional stockholders’ equity as elected by the Corporation and permitted by federal banking regulatory agencies related to the adoption of ASC 326. Risk-weighted assets were also adjusted accordingly.
Reconciliation of Stockholders' Equity to Federal Regulatory Capital

The following table reconciles stockholders’ equity to federal regulatory capital at December 31, 2024 and 2023, respectively:

 

 

As of December 31,

 

 

2024

 

 

2023

 

 

(In Thousands)

 

Stockholders’ equity of the Corporation

 

$

328,589

 

 

$

289,588

 

Net unrealized and accumulated losses on specific items

 

 

11,425

 

 

 

13,717

 

Disallowed servicing assets

 

 

(514

)

 

 

(614

)

Disallowed goodwill and other intangibles

 

 

(10,380

)

 

 

(10,368

)

ASC 326 Phase-in

 

 

676

 

 

 

1,015

 

Tier 1 capital

 

 

329,796

 

 

 

293,338

 

Allowable general valuation allowances and subordinated
   debt

 

 

91,843

 

 

 

82,102

 

Total capital

 

$

421,639

 

 

$

375,440

 
v3.25.0.1
Earnings Per Common Share (Tables)
 12 Months Ended
Dec. 31, 2024
Earnings Per Share [Abstract]  
Summary of Earnings Per Common Share

 

 

For the Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

 

 

(Dollars in Thousands, Except Share Data)

 

Basic earnings per common share

 

 

 

 

 

 

 

 

 

Net income

 

$

44,245

 

 

$

37,027

 

 

$

40,858

 

Less: preferred stock dividends

 

 

875

 

 

 

875

 

 

 

683

 

Less: earnings allocated to participating securities

 

 

1,033

 

 

 

938

 

 

 

1,106

 

Basic earnings allocated to common shareholders

 

$

42,337

 

 

$

35,214

 

 

$

39,069

 

Weighted-average common shares outstanding,
   excluding participating securities

 

 

8,148,259

 

 

 

8,131,251

 

 

 

8,226,943

 

Basic earnings per common share

 

$

5.20

 

 

$

4.33

 

 

$

4.75

 

Diluted earnings per common share

 

 

 

 

 

 

 

 

 

Earnings allocated to common shareholders, diluted

 

$

42,337

 

 

$

35,214

 

 

$

39,069

 

Weighted-average diluted common shares outstanding,
   excluding participating securities

 

 

8,148,259

 

 

 

8,131,251

 

 

 

8,226,943

 

Diluted earnings per common share

 

$

5.20

 

 

$

4.33

 

 

$

4.75

 
v3.25.0.1
Share-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Summary of Restricted Stock Activity

Restricted stock activity for the year ended December 31, 2023 and the year ended December 31, 2024 was as follows:

 

 

 

RSA

 

 

Weighted
Average
Grant Price

 

 

PRSU

 

 

Weighted
Average
Grant Price

 

 

RSU

 

 

Weighted
Average
Grant Price

 

 

Total

 

 

Weighted
Average
Grant Price

 

Nonvested balance as of
   January 1, 2022

 

 

141,617

 

 

$

23.06

 

 

 

63,120

 

 

$

28.20

 

 

 

5,052

 

 

$

23.56

 

 

 

209,789

 

 

$

24.62

 

Granted (1)

 

 

62,560

 

 

 

34.04

 

 

 

37,335

 

 

 

24.71

 

 

 

3,115

 

 

 

27.95

 

 

 

103,010

 

 

 

30.47

 

Vested

 

 

(62,353

)

 

 

23.21

 

 

 

(43,020

)

 

 

18.91

 

 

 

(2,062

)

 

 

23.20

 

 

 

(107,435

)

 

 

21.49

 

Forfeited

 

 

(8,507

)

 

 

26.15

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(8,507

)

 

 

26.15

 

Nonvested balance as of
   December 31, 2022

 

 

133,317

 

 

$

27.95

 

 

 

57,435

 

 

$

32.89

 

 

 

6,105

 

 

$

25.92

 

 

 

196,857

 

 

$

29.32

 

Granted (1)

 

 

—

 

 

 

—

 

 

 

34,840

 

 

 

35.79

 

 

 

54,955

 

 

 

34.43

 

 

 

89,795

 

 

 

34.96

 

Vested

 

 

(56,931

)

 

 

27.03

 

 

 

(36,120

)

 

 

31.31

 

 

 

(3,253

)

 

 

26.06

 

 

 

(96,304

)

 

 

28.60

 

Forfeited

 

 

(4,435

)

 

 

30.20

 

 

 

—

 

 

 

—

 

 

 

(820

)

 

 

36.42

 

 

 

(5,255

)

 

 

31.17

 

Nonvested balance as of
   December 31, 2023

 

 

71,951

 

 

 

28.53

 

 

 

56,155

 

 

 

35.70

 

 

 

56,987

 

 

 

33.97

 

 

 

185,093

 

 

 

32.38

 

Granted (1)

 

 

—

 

 

 

—

 

 

 

27,614

 

 

 

34.76

 

 

 

65,717

 

 

 

30.43

 

 

 

93,331

 

 

 

31.71

 

Vested

 

 

(35,131

)

 

 

26.86

 

 

 

(34,139

)

 

 

25.43

 

 

 

(33,716

)

 

 

21.25

 

 

 

(102,986

)

 

 

24.57

 

Forfeited

 

 

(7,924

)

 

 

29.75

 

 

 

—

 

 

 

—

 

 

 

(8,827

)

 

 

36.25

 

 

 

(16,751

)

 

 

33.18

 

Nonvested balance as of
   December 31, 2024

 

 

28,896

 

 

$

30.09

 

 

 

49,630

 

 

$

42.24

 

 

 

80,161

 

 

$

36.04

 

 

 

158,687

 

 

$

36.77

 

Unrecognized compensation
   cost (in thousands)

 

$

416

 

 

 

 

 

$

1,037

 

 

 

 

 

$

2,192

 

 

 

 

 

$

3,645

 

 

 

 

Weighted average remaining
   recognition period (in years)

 

 

1.07

 

 

 

 

 

 

1.69

 

 

 

 

 

 

2.55

 

 

 

 

 

 

2.13

 

 

 

 

 

(1)
The number of restricted shares/units shown includes the shares that would be granted if the target level of performance is achieved related to the PRSU. The number of shares actually issued may vary. During the year ended December 31, 2024, an additional 10,589 were issued related to actual performance results of previously granted awards.
Share-based Payment Arrangement, Expensed and Capitalized, Amount

Share-based compensation expense related to restricted stock and ESPP included in the Consolidated Statements of Income was as follows:

 

 

 

For the Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

 

 

(In Thousands)

 

Share-based compensation expense

 

$

2,785

 

 

$

2,977

 

 

$

2,584

 
v3.25.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense

Income tax expense consists of the following:

 

 

For the Year Ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

 

(In Thousands)

 

Current:

 

 

 

 

 

 

 

 

 

Federal

 

$

8,783

 

 

$

7,759

 

 

$

9,174

 

State

 

 

1,635

 

 

 

233

 

 

 

2,987

 

Current tax expense

 

 

10,418

 

 

 

7,992

 

 

 

12,161

 

Deferred:

 

 

 

 

 

 

 

 

 

Federal

 

 

(1,263

)

 

 

(716

)

 

 

(733

)

State

 

 

(2,250

)

 

 

2,836

 

 

 

(42

)

Deferred tax (benefit) expense

 

 

(3,513

)

 

 

2,120

 

 

 

(775

)

Total income tax expense

 

$

6,905

 

 

$

10,112

 

 

$

11,386

 

 
Schedule of Deferred Tax Assets and Liabilities

The significant components of the Corporation’s deferred tax assets and liabilities were as follows:

 

 

December 31, 2024

 

 

December 31, 2023

 

 

(In Thousands)

 

Deferred tax assets:

 

 

 

 

 

 

Allowance for credit losses

 

$

9,820

 

 

$

8,730

 

Deferred compensation

 

 

2,511

 

 

 

2,094

 

State net operating loss carryforwards

 

 

687

 

 

 

875

 

Write-down of repossessed assets

 

 

31

 

 

 

10

 

Non-accrual loan interest

 

 

222

 

 

 

95

 

Capital loss carryforwards

 

 

—

 

 

 

22

 

Unrealized losses on securities

 

 

4,136

 

 

 

4,715

 

Share-based compensation

 

 

761

 

 

 

788

 

Other

 

 

154

 

 

 

284

 

Total deferred tax assets before valuation allowance

 

 

18,322

 

 

 

17,613

 

Valuation allowance

 

 

(1,568

)

 

 

(3,339

)

Total deferred tax assets

 

 

16,754

 

 

 

14,274

 

Deferred tax liabilities:

 

 

 

 

 

 

Leasing and fixed asset activities

 

 

1,361

 

 

 

1,854

 

Loan servicing asset

 

 

328

 

 

 

381

 

Other

 

 

2,466

 

 

 

2,531

 

Total deferred tax liabilities

 

 

4,155

 

 

 

4,766

 

Net deferred tax asset

 

$

12,599

 

 

$

9,508

 

 
Schedule of Effective Income Tax Rate Reconciliation

The provision for income taxes differs from that computed at the federal statutory corporate tax rate as follows:

 

 

Year Ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

 

(Dollars in Thousands)

 

Income before income tax expense

 

$

51,150

 

 

$

47,139

 

 

$

52,244

 

Tax expense at statutory federal rate of 21% applied to
   income before income tax expense

 

$

10,741

 

 

$

9,899

 

 

$

10,971

 

State income tax, net of federal effect

 

 

1,441

 

 

 

(52

)

 

 

2,337

 

Tax-exempt security and loan income, net of TEFRA
   adjustments

 

 

(1,201

)

 

 

(856

)

 

 

(704

)

Change in valuation allowance

 

 

(1,888

)

 

 

3,349

 

 

 

—

 

Bank-owned life insurance

 

 

(346

)

 

 

(313

)

 

 

(468

)

Tax credits, net

 

 

(1,787

)

 

 

(1,045

)

 

 

(338

)

Share-based compensation

 

 

(251

)

 

 

(159

)

 

 

(392

)

Section 162(m) limitation

 

 

106

 

 

 

123

 

 

 

118

 

Other

 

 

90

 

 

 

(834

)

 

 

(138

)

Total income tax expense

 

$

6,905

 

 

$

10,112

 

 

$

11,386

 

Effective tax rate

 

 

13.50

%

 

 

21.45

%

 

 

21.79

%

 
v3.25.0.1
Derivative Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Summary of Location and Fair Value of Derivative Instruments

 

 

As of December 31, 2024

 

 

 

Number of
Instruments

 

 

Notional
Amount

 

 

Weighted
Average
Maturity
(In Years)

 

 

Fair
Value

 

 

 

(Dollars in Thousands)

 

Included in Derivative assets

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives not designated as hedging instruments

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swap agreements on loans with commercial
   loan clients

 

 

20

 

 

$

232,488

 

 

 

4.55

 

 

$

2,015

 

Interest rate swap agreements on loans with third-party
   counterparties

 

 

106

 

 

 

1,022,365

 

 

 

5.24

 

 

 

54,544

 

Derivatives designated as hedging instruments

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swap related to AFS securities

 

 

11

 

 

$

12,500

 

 

 

7.28

 

 

$

1,014

 

Interest rate swap related to wholesale funding

 

 

36

 

 

 

384,655

 

 

 

3.95

 

 

 

8,189

 

Included in Derivative liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives not designated as hedging instruments

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swap agreements on loans with commercial
   loan clients

 

 

86

 

 

$

789,877

 

 

 

5.44

 

 

$

56,559

 

Derivatives designated as hedging instruments

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swap related to wholesale funding

 

 

10

 

 

$

100,000

 

 

 

1.55

 

 

$

509

 

 

 

 

As of December 31, 2023

 

 

 

Number of
Instruments

 

 

Notional
Amount

 

 

Weighted
Average
Maturity
(In Years)

 

 

Fair
Value

 

 

 

(Dollars in Thousands)

 

Included in Derivative assets

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives not designated as hedging instruments

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swap agreements on loans with commercial
   loan clients

 

 

25

 

 

$

249,454

 

 

 

6.33

 

 

$

7,904

 

Interest rate swap agreements on loans with third-party
   counter parties

 

 

106

 

 

 

939,156

 

 

 

6.06

 

 

 

43,234

 

Derivatives designated as hedging instruments

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swap related to AFS securities

 

 

11

 

 

$

12,500

 

 

 

8.28

 

 

$

624

 

Interest rate swap related to wholesale funding

 

 

9

 

 

 

96,400

 

 

 

2.47

 

 

 

3,835

 

Included in Derivative liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives not designated as hedging instruments

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swap agreements on loans with commercial
   loan clients

 

 

81

 

 

$

689,702

 

 

 

5.96

 

 

$

51,138

 

Derivatives designated as hedging instruments

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swap related to wholesale funding

 

 

29

 

 

$

306,255

 

 

 

3.89

 

 

$

811

 
v3.25.0.1
Commitments and Contingencies (Tables)
 12 Months Ended
Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Lending Related And Other Commitments

Financial instruments whose contract amounts represent potential credit risk were as follows:

 

 

 

At December 31,

 

 

 

2024

 

 

2023

 

 

 

(In Thousands)

 

Commitments to extend credit, primarily commercial loans

 

$

1,046,598

 

 

$

1,198,031

 

Standby letters of credit

 

 

17,276

 

 

 

17,938

 
Summary of SBA Recourse Reserve

The summary of the activity in the SBA recourse reserve is as follows:

 

 

 

As of and for the Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

 

(In Thousands)

 

Balance at the beginning of the period

 

$

955

 

 

$

441

 

SBA recourse

 

 

(104

)

 

 

775

 

Charge-offs, net

 

 

(206

)

 

 

(261

)

Balance at the end of the period

 

$

645

 

 

$

955

 
v3.25.0.1
Fair Value Disclosures (Tables)
 12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Schedule of Assets and Liabilities Measured at Fair Value On a Recurring Basis

Assets and liabilities measured at fair value on a recurring basis, segregated by fair value hierarchy level, are summarized below:

 

 

 

December 31, 2024

 

 

 

Fair Value Measurements Using

 

 

 

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

(In Thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Securities available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasuries

 

$

—

 

 

$

4,718

 

 

$

—

 

 

$

4,718

 

U.S. government agency securities - government-
   sponsored enterprises

 

 

—

 

 

 

3,153

 

 

 

—

 

 

 

3,153

 

Municipal securities

 

 

—

 

 

 

34,861

 

 

 

—

 

 

 

34,861

 

Residential mortgage-backed securities - government
   issued

 

 

—

 

 

 

123,223

 

 

 

—

 

 

 

123,223

 

Residential mortgage-backed securities - government-
   sponsored enterprises

 

 

—

 

 

 

134,765

 

 

 

—

 

 

 

134,765

 

Commercial mortgage-backed securities - government
   issued

 

 

—

 

 

 

2,224

 

 

 

—

 

 

 

2,224

 

Commercial mortgage-backed securities - government-
   sponsored enterprises

 

 

—

 

 

 

38,448

 

 

 

—

 

 

 

38,448

 

Interest rate swaps

 

 

—

 

 

 

65,762

 

 

 

—

 

 

 

65,762

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swaps

 

 

—

 

 

 

57,068

 

 

 

—

 

 

 

57,068

 

 

 

 

December 31, 2023

 

 

 

Fair Value Measurements Using

 

 

 

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

(In Thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Securities available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasuries

 

$

—

 

 

$

13,776

 

 

$

—

 

 

$

13,776

 

U.S. government agency securities - government-
   sponsored enterprises

 

 

—

 

 

 

27,566

 

 

 

—

 

 

 

27,566

 

Municipal securities

 

 

—

 

 

 

35,881

 

 

 

—

 

 

 

35,881

 

Residential mortgage-backed securities - government
   issued

 

 

—

 

 

 

68,056

 

 

 

—

 

 

 

68,056

 

Residential mortgage-backed securities - government-
   sponsored enterprises

 

 

—

 

 

 

120,833

 

 

 

—

 

 

 

120,833

 

Commercial mortgage-backed securities - government
   issued

 

 

—

 

 

 

2,525

 

 

 

—

 

 

 

2,525

 

Commercial mortgage-backed securities - government-
   sponsored enterprises

 

 

—

 

 

 

28,369

 

 

 

—

 

 

 

28,369

 

Interest rate swaps

 

 

—

 

 

 

55,597

 

 

 

—

 

 

 

55,597

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swaps

 

 

—

 

 

 

51,949

 

 

 

—

 

 

 

51,949

 
Schedule of Assets and Liabilities Measured at Fair Value on a Non-recurring Basis

Assets and liabilities measured at fair value on a non-recurring basis, segregated by fair value hierarchy are summarized below:

 

 

 

December 31, 2024

 

 

 

Fair Value Measurements Using

 

 

 

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

(In Thousands)

 

Collateral-dependent loans

 

$

—

 

 

$

—

 

 

$

7,506

 

 

$

7,506

 

Repossessed assets

 

 

—

 

 

 

—

 

 

 

51

 

 

 

51

 

Loan servicing rights

 

 

—

 

 

 

—

 

 

 

1,245

 

 

 

1,245

 

 

 

 

December 31, 2023

 

 

 

Fair Value Measurements Using

 

 

 

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

(In Thousands)

 

Collateral-dependent loans

 

$

—

 

 

$

—

 

 

$

4,917

 

 

$

4,917

 

Repossessed assets

 

 

—

 

 

 

—

 

 

 

247

 

 

 

247

 

Loan servicing rights

 

 

—

 

 

 

—

 

 

 

1,356

 

 

 

1,356

 
Schedule of Estimated Fair Values for Financial Instruments

The Corporation is required to disclose estimated fair values for its financial instruments. Fair value estimates, methods, and assumptions, consistent with exit price concepts for fair value measurements, are set forth below:

 

 

 

December 31, 2024

 

 

 

Carrying
Amount

 

 

Fair Value

 

 

 

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

(In Thousands)

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

157,702

 

 

$

157,702

 

 

$

157,702

 

 

$

—

 

 

$

—

 

Securities available-for-sale

 

 

341,392

 

 

 

341,392

 

 

 

—

 

 

 

341,392

 

 

 

—

 

Securities held-to-maturity

 

 

6,741

 

 

 

6,535

 

 

 

—

 

 

 

6,535

 

 

 

—

 

Loans held for sale

 

 

13,498

 

 

 

14,577

 

 

 

—

 

 

 

14,577

 

 

 

—

 

Loans and lease receivables, net

 

 

3,077,343

 

 

 

3,049,890

 

 

 

—

 

 

 

—

 

 

 

3,049,890

 

Federal Home Loan Bank stock

 

 

11,616

 

 

N/A

 

 

N/A

 

 

N/A

 

 

N/A

 

Accrued interest receivable

 

 

12,879

 

 

 

12,879

 

 

 

12,879

 

 

 

—

 

 

 

—

 

Interest rate swaps

 

 

65,762

 

 

 

65,762

 

 

 

—

 

 

 

65,762

 

 

 

—

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

3,107,140

 

 

 

3,107,068

 

 

 

2,406,532

 

 

 

700,536

 

 

 

—

 

Federal Home Loan Bank advances and other borrowings

 

 

320,049

 

 

 

314,175

 

 

 

—

 

 

 

314,175

 

 

 

—

 

Accrued interest payable

 

 

10,175

 

 

 

10,175

 

 

 

10,175

 

 

 

—

 

 

 

—

 

Interest rate swaps

 

 

57,068

 

 

 

57,068

 

 

 

—

 

 

 

57,068

 

 

 

—

 

Off-balance sheet items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Standby letters of credit

 

 

209

 

 

 

209

 

 

 

—

 

 

 

—

 

 

 

209

 

N/A = The fair value is not applicable due to restrictions placed on transferability

 

 

 

December 31, 2023

 

 

 

Carrying
Amount

 

 

Fair Value

 

 

 

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

(In Thousands)

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

139,510

 

 

$

139,510

 

 

$

139,510

 

 

$

—

 

 

$

—

 

Securities available-for-sale

 

 

297,006

 

 

 

297,006

 

 

 

—

 

 

 

297,006

 

 

 

—

 

Securities held-to-maturity

 

 

8,503

 

 

 

8,255

 

 

 

—

 

 

 

8,255

 

 

 

—

 

Loans held for sale

 

 

4,589

 

 

 

4,956

 

 

 

—

 

 

 

4,956

 

 

 

—

 

Loans and lease receivables, net

 

 

2,818,986

 

 

 

2,789,731

 

 

 

—

 

 

 

—

 

 

 

2,789,731

 

Federal Home Loan Bank stock

 

 

12,042

 

 

N/A

 

 

N/A

 

 

N/A

 

 

N/A

 

Accrued interest receivable

 

 

13,275

 

 

 

13,275

 

 

 

13,275

 

 

 

—

 

 

 

—

 

Interest rate swaps

 

 

55,597

 

 

 

55,597

 

 

 

—

 

 

 

55,597

 

 

 

—

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

2,796,779

 

 

 

2,795,463

 

 

 

2,101,939

 

 

 

693,524

 

 

 

—

 

Federal Home Loan Bank advances and other borrowings

 

 

330,916

 

 

 

320,287

 

 

 

—

 

 

 

320,287

 

 

 

—

 

Accrued interest payable

 

 

10,860

 

 

 

10,860

 

 

 

10,860

 

 

 

—

 

 

 

—

 

Interest rate swaps

 

 

51,949

 

 

 

51,949

 

 

 

—

 

 

 

51,949

 

 

 

—

 

Off-balance sheet items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Standby letters of credit

 

 

190

 

 

 

190

 

 

 

—

 

 

 

—

 

 

 

190

 

N/A = The fair value is not applicable due to restrictions placed on transferability
v3.25.0.1
Condensed Parent Only Financial Information (Tables)
 12 Months Ended
Dec. 31, 2024
Condensed Financial Information Disclosure [Abstract]  
Condensed Balance Sheet

Condensed Balance Sheets

 

 

December 31,
2024

 

 

December 31,
2023

 

 

(In Thousands)

 

Assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

5,384

 

 

$

2,027

 

Investments in subsidiaries, at equity

 

 

379,604

 

 

 

339,854

 

Premises and equipment, net

 

 

67

 

 

 

51

 

Other assets

 

 

2,908

 

 

 

697

 

Total assets

 

$

387,963

 

 

$

342,629

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

Subordinated notes and other borrowings

 

$

54,689

 

 

$

49,396

 

Accrued interest payable and other liabilities

 

 

4,685

 

 

 

3,645

 

Total liabilities

 

 

59,374

 

 

 

53,041

 

Stockholders’ equity

 

 

328,589

 

 

 

289,588

 

Total liabilities and stockholders’ equity

 

$

387,963

 

 

$

342,629

 

 
Condensed Income Statement

Condensed Statements of Income

 

 

For the Year Ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

 

(In Thousands)

 

Net interest expense

 

$

3,283

 

 

$

1,989

 

 

$

2,295

 

Non-interest income

 

 

 

 

 

 

 

 

 

Dividends from subsidiaries

 

 

11,500

 

 

 

12,100

 

 

 

2,000

 

Consulting and rental income from consolidated
   subsidiaries

 

 

5,812

 

 

 

5,644

 

 

 

5,794

 

Other non-interest income

 

 

10

 

 

 

43

 

 

 

69

 

Total non-interest income

 

 

17,322

 

 

 

17,787

 

 

 

7,863

 

Non-interest expense

 

 

8,375

 

 

 

8,234

 

 

 

7,633

 

Gain (loss) before income tax benefit and equity in
   undistributed net income of consolidated subsidiaries

 

 

5,664

 

 

 

7,564

 

 

 

(2,065

)

Income tax benefit

 

 

1,940

 

 

 

337

 

 

 

1,387

 

Gain (loss) before equity in undistributed net income of
   consolidated subsidiaries

 

 

7,604

 

 

 

7,901

 

 

 

(678

)

Equity in undistributed net income of consolidated
   subsidiaries

 

 

36,641

 

 

 

29,126

 

 

 

41,536

 

Net income

 

$

44,245

 

 

$

37,027

 

 

$

40,858

 

 
Condensed Cash Flow Statement

Condensed Statements of Cash Flows

 

 

For the Year Ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

 

(In Thousands)

 

Operating activities

 

 

 

 

 

 

 

 

 

Net income

 

$

44,245

 

 

$

37,027

 

 

$

40,858

 

Adjustments to reconcile net income to net cash used in
   operating activities:

 

 

 

 

 

 

 

 

 

Equity in undistributed earnings of consolidated subsidiaries

 

 

(36,641

)

 

 

(29,126

)

 

 

(41,536

)

Share-based compensation

 

 

2,785

 

 

 

2,977

 

 

 

2,584

 

Excess tax benefit from share-based compensation

 

 

(219

)

 

 

(91

)

 

 

(91

)

Net (decrease) increase in other liabilities

 

 

(146

)

 

 

(1,854

)

 

 

2,592

 

Other, net

 

 

(1,639

)

 

 

1,207

 

 

 

(530

)

Net cash provided by operating activities

 

 

8,385

 

 

 

10,140

 

 

 

3,877

 

Investing activities

 

 

 

 

 

 

 

 

 

Proceeds from redemption of Trust II stock

 

 

—

 

 

 

—

 

 

 

315

 

Capital contributions to subsidiaries

 

 

—

 

 

 

(15,000

)

 

 

—

 

Net cash (used in) provided by investing activities

 

 

—

 

 

 

(15,000

)

 

 

315

 

Financing activities

 

 

 

 

 

 

 

 

 

Net increase (decreases) in long-term borrowed funds

 

 

293

 

 

 

54

 

 

 

(357

)

Proceeds from issuance of subordinated notes payable

 

 

20,000

 

 

 

15,000

 

 

 

20,000

 

Repayment of subordinated notes payable

 

 

(15,000

)

 

 

—

 

 

 

(9,090

)

Repayment of junior subordinated debentures

 

 

—

 

 

 

—

 

 

 

(10,076

)

Proceeds from issuance of preferred stock

 

 

—

 

 

 

—

 

 

 

11,992

 

Proceeds from purchased funds and other short-term debt

 

 

—

 

 

 

—

 

 

 

(500

)

Purchase of treasury stock

 

 

(1,270

)

 

 

(2,971

)

 

 

(6,126

)

Preferred stock dividends paid

 

 

(875

)

 

 

(875

)

 

 

(683

)

Cash dividends paid

 

 

(8,320

)

 

 

(7,578

)

 

 

(6,688

)

Net proceeds from purchases of ESPP shares

 

 

144

 

 

 

128

 

 

 

134

 

Net cash (used in) provided by financing activities

 

 

(5,028

)

 

 

3,758

 

 

 

(1,394

)

Net increase (decrease) in cash and due from banks

 

 

3,357

 

 

 

(1,102

)

 

 

2,798

 

Cash and cash equivalents at the beginning of the period

 

 

2,027

 

 

 

3,129

 

 

 

331

 

Cash and cash equivalents at the end of the period

 

$

5,384

 

 

$

2,027

 

 

$

3,129

 
v3.25.0.1
Segment Information (Tables)
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segments

 

For the Year Ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

 

(In Thousands)

 

Interest income

 

$

233,130

 

 

$

194,928

 

 

$

121,371

 

Reconciliation of revenue

 

 

 

 

 

 

 

 

 

Other revenues

 

 

29,251

 

 

 

31,308

 

 

 

29,428

 

Total consolidated revenues

 

 

262,381

 

 

 

226,236

 

 

 

150,799

 

Less: interest expense

 

 

108,924

 

 

 

82,340

 

 

 

22,949

 

Segment net interest and non-interest income

 

 

153,457

 

 

 

143,896

 

 

 

127,850

 

Less:

 

 

 

 

 

 

 

 

 

Provision for credit losses

 

 

8,827

 

 

 

8,182

 

 

 

(3,868

)

Compensation expense

 

 

63,105

 

 

 

61,059

 

 

 

57,742

 

Other segment items

 

 

30,375

 

 

 

27,516

 

 

 

21,732

 

Income tax expense

 

 

6,905

 

 

 

10,112

 

 

 

11,386

 

Segment and consolidated net income

 

$

44,245

 

 

$

37,027

 

 

$

40,858

 

 

 

 

 

 

 

 

 

 

 

Other segment disclosures:

 

 

 

 

 

 

 

 

 

Interest income

 

$

233,130

 

 

$

194,928

 

 

$

121,371

 

Interest expense

 

 

108,924

 

 

 

82,340

 

 

 

22,949

 

Depreciation, amortization, and accretion

 

 

3,738

 

 

 

3,636

 

 

 

4,066

 

Other significant noncash item:

 

 

 

 

 

 

 

 

 

      Provision for credit losses

 

 

8,827

 

 

 

8,182

 

 

 

(3,868

)

Segment assets

 

 

3,853,215

 

 

 

3,507,846

 

 

 

2,976,611

 

Expenses for segment assets

 

 

93,480

 

 

 

88,575

 

 

 

79,474

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of assets:

 

 

 

 

 

 

 

 

 

Total assets for reportable segments

 

$

3,853,215

 

 

$

3,507,846

 

 

$

2,976,611

 

Other assets

 

 

—

 

 

 

—

 

 

 

—

 

Total consolidated assets

 

$

3,853,215

 

 

$

3,507,846

 

 

$

2,976,611

 
v3.25.0.1
Condensed Quarterly Earnings (unaudited) (Tables)
 12 Months Ended
Dec. 31, 2024
Quarterly Financial Information Disclosure [Abstract]  
Schedule of Quarterly Financial Information Condensed Quarterly Earnings (unaudited)

 

 

 

2024

 

 

2023

 

 

 

Fourth
Quarter

 

 

Third
Quarter

 

 

Second
Quarter

 

 

First
Quarter

 

 

Fourth
Quarter

 

 

Third
Quarter

 

 

Second
Quarter

 

 

First
Quarter

 

 

 

(Dollars in Thousands, Except Per Share Data)

 

Interest income

 

$

60,110

 

 

$

59,327

 

 

$

57,910

 

 

$

55,783

 

 

$

54,762

 

 

$

50,941

 

 

$

47,161

 

 

$

42,064

 

Interest expense

 

 

26,962

 

 

 

28,320

 

 

 

27,370

 

 

 

26,272

 

 

 

25,222

 

 

 

22,345

 

 

 

19,414

 

 

 

15,359

 

Net interest income

 

 

33,148

 

 

 

31,007

 

 

 

30,540

 

 

 

29,511

 

 

 

29,540

 

 

 

28,596

 

 

 

27,747

 

 

 

26,705

 

Provision for credit losses

 

 

2,701

 

 

 

2,087

 

 

 

1,713

 

 

 

2,326

 

 

 

2,573

 

 

 

1,817

 

 

 

2,231

 

 

 

1,561

 

Non-interest income

 

 

8,005

 

 

 

7,064

 

 

 

7,425

 

 

 

6,757

 

 

 

7,094

 

 

 

8,430

 

 

 

7,374

 

 

 

8,410

 

Non-interest expense

 

 

23,152

 

 

 

23,107

 

 

 

23,879

 

 

 

23,342

 

 

 

21,588

 

 

 

23,189

 

 

 

22,031

 

 

 

21,767

 

Income before income tax
   expense

 

 

15,300

 

 

 

12,877

 

 

 

12,373

 

 

 

10,600

 

 

 

12,473

 

 

 

12,020

 

 

 

10,859

 

 

 

11,787

 

Income tax expense

 

 

885

 

 

 

2,351

 

 

 

1,917

 

 

 

1,752

 

 

 

2,703

 

 

 

2,079

 

 

 

2,522

 

 

 

2,808

 

Net income

 

 

14,415

 

 

 

10,526

 

 

 

10,456

 

 

 

8,848

 

 

 

9,770

 

 

 

9,941

 

 

 

8,337

 

 

 

8,979

 

Preferred stock dividend

 

 

219

 

 

 

218

 

 

 

219

 

 

 

219

 

 

 

219

 

 

 

218

 

 

 

219

 

 

 

219

 

Income available to common
   shareholders

 

$

14,196

 

 

$

10,308

 

 

$

10,237

 

 

$

8,629

 

 

$

9,551

 

 

$

9,723

 

 

$

8,118

 

 

$

8,760

 

Per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings

 

$

1.71

 

 

$

1.24

 

 

$

1.23

 

 

$

1.04

 

 

$

1.15

 

 

$

1.17

 

 

$

0.98

 

 

$

1.05

 

Diluted earnings

 

 

1.71

 

 

 

1.24

 

 

 

1.23

 

 

 

1.04

 

 

 

1.15

 

 

 

1.17

 

 

 

0.98

 

 

 

1.05

 

Dividends declared

 

 

0.25

 

 

 

0.25

 

 

 

0.25

 

 

 

0.25

 

 

 

0.2275

 

 

 

0.2275

 

 

 

0.2275

 

 

 

0.2275

 
v3.25.0.1
Nature of Operations and Summary of Significant Accounting Policies - Additional Information (Details)
 12 Months Ended
Dec. 31, 2024
USD ($)
Segment
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Organization, Consolidation And Presentations Of Financial Statements [Line Items]      
Trading securities $ 0 $ 0  
Accrued interest receivable on AFS debt securities 1,300,000    
Accrued interest receivable on HTM debt securities 31,000    
Loans held for sale 13,498,000 4,589,000  
Accrued interest receivable on loans 11,000,000    
Bank owned life insurance death benefits 133,800,000 133,700,000  
Borrowings against cash surrender value of bank owned life insurance 0 0  
Federal Home Loan Bank stock, at cost 11,616,000 12,042,000  
Impairments recorded on FHLB stock $ 0 0  
Maximum ownership percentage that is not consolidated 50.00%    
Investment in corporations minimum ownership percentage for accounting for using the equity method 20.00%    
Investment in corporations maximum ownership percentage for accounting for at cost 20.00%    
Investment in limited partnerships maximum ownership percentage for accounting for at cost 3.00%    
Reclassification adjustment for net loss realized in net income $ 8,000 $ 45,000 $ 0
Number of operating segments | Segment 1    
Minimum      
Organization, Consolidation And Presentations Of Financial Statements [Line Items]      
Equipment, estimated useful lives 3 years    
Investment in limited partnerships ownership percentage for accounting for using the equity method 3.00%    
Maximum      
Organization, Consolidation And Presentations Of Financial Statements [Line Items]      
Equipment, estimated useful lives 10 years    
Investment in limited partnerships ownership percentage for accounting for using the equity method 50.00%    
Restricted Stock | Minimum      
Organization, Consolidation And Presentations Of Financial Statements [Line Items]      
Requisite service and performance period 3 years    
Restricted Stock | Maximum      
Organization, Consolidation And Presentations Of Financial Statements [Line Items]      
Requisite service and performance period 4 years    
Performance-Based Restricted Stock Units      
Organization, Consolidation And Presentations Of Financial Statements [Line Items]      
Requisite service and performance period 3 years    
Award vesting period 3 years    
Performance-Based Restricted Stock Units | Minimum      
Organization, Consolidation And Presentations Of Financial Statements [Line Items]      
Percentage of target shares granted 0.00%    
Performance-Based Restricted Stock Units | Maximum      
Organization, Consolidation And Presentations Of Financial Statements [Line Items]      
Percentage of target shares granted 200.00%    
Employee Stock Purchase Plan      
Organization, Consolidation And Presentations Of Financial Statements [Line Items]      
Purchase price of common stock, percentage on fair value 90.00%    
v3.25.0.1
Cash and Cash Equivalents - Additional Information (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Cash and Cash Equivalents [Abstract]    
Cash and due from banks $ 29,495 $ 32,348
Federal Reserve Bank balances 127,800 106,800
Short-term investments $ 128,207 $ 107,162
v3.25.0.1
Securities - Schedule of Available-for-sale Securities (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Schedule of Available-for-sale Securities    
Amortized Cost $ 365,643 $ 319,082
Gross unrealized holding gains 728 1,388
Gross unrealized holding losses (24,979) (23,464)
Available-for-sale securities, fair value 341,392 297,006
US Treasuries    
Schedule of Available-for-sale Securities    
Amortized Cost 4,989 14,158
Gross unrealized holding gains 0 7
Gross unrealized holding losses (271) (389)
Available-for-sale securities, fair value 4,718 13,776
US government agency securities | Government Sponsored Enterprises    
Schedule of Available-for-sale Securities    
Amortized Cost 3,500 27,986
Gross unrealized holding gains 0 35
Gross unrealized holding losses (347) (455)
Available-for-sale securities, fair value 3,153 27,566
Municipal Securities    
Schedule of Available-for-sale Securities    
Amortized Cost 39,997 40,407
Gross unrealized holding gains 0 0
Gross unrealized holding losses (5,136) (4,526)
Available-for-sale securities, fair value 34,861 35,881
Residential Mortgage-backed Securities    
Schedule of Available-for-sale Securities    
Amortized Cost 271,459  
Available-for-sale securities, fair value 257,988  
Residential Mortgage-backed Securities | GNMA    
Schedule of Available-for-sale Securities    
Amortized Cost 125,571 69,441
Gross unrealized holding gains 470 1,000
Gross unrealized holding losses (2,818) (2,385)
Available-for-sale securities, fair value 123,223 68,056
Residential Mortgage-backed Securities | Government Sponsored Enterprises    
Schedule of Available-for-sale Securities    
Amortized Cost 145,888 131,321
Gross unrealized holding gains 234 281
Gross unrealized holding losses (11,357) (10,769)
Available-for-sale securities, fair value 134,765 120,833
Commercial Mortgage-backed Securities    
Schedule of Available-for-sale Securities    
Amortized Cost 45,698  
Available-for-sale securities, fair value 40,672  
Commercial Mortgage-backed Securities | GNMA    
Schedule of Available-for-sale Securities    
Amortized Cost 2,665 2,995
Gross unrealized holding gains 0 0
Gross unrealized holding losses (441) (470)
Available-for-sale securities, fair value 2,224 2,525
Commercial Mortgage-backed Securities | Government Sponsored Enterprises    
Schedule of Available-for-sale Securities    
Amortized Cost 43,033 32,774
Gross unrealized holding gains 24 65
Gross unrealized holding losses (4,609) (4,470)
Available-for-sale securities, fair value $ 38,448 $ 28,369
v3.25.0.1
Securities - Schedule of Held-to-maturity Securities (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Schedule of Held-to-maturity Securities    
Amortized Cost $ 6,741 $ 8,503
Gross unrecognized holding gains 0 4
Gross unrecognized holding losses (206) (252)
Estimated Fair Value 6,535 8,255
Municipal Securities    
Schedule of Held-to-maturity Securities    
Amortized Cost 3,137 4,210
Gross unrecognized holding gains 0 4
Gross unrecognized holding losses (38) (41)
Estimated Fair Value 3,099 4,173
Residential Mortgage-backed Securities    
Schedule of Held-to-maturity Securities    
Amortized Cost 1,602  
Estimated Fair Value 1,512  
Residential Mortgage-backed Securities | GNMA    
Schedule of Held-to-maturity Securities    
Amortized Cost 836 1,211
Gross unrecognized holding gains 0 0
Gross unrecognized holding losses (48) (76)
Estimated Fair Value 788 1,135
Residential Mortgage-backed Securities | Government Sponsored Enterprises    
Schedule of Held-to-maturity Securities    
Amortized Cost 766 1,078
Gross unrecognized holding gains 0 0
Gross unrecognized holding losses (42) (53)
Estimated Fair Value 724 1,025
Commercial Mortgage-backed Securities    
Schedule of Held-to-maturity Securities    
Amortized Cost 2,002  
Estimated Fair Value 1,924  
Commercial Mortgage-backed Securities | Government Sponsored Enterprises    
Schedule of Held-to-maturity Securities    
Amortized Cost 2,002 2,004
Gross unrecognized holding gains 0 0
Gross unrecognized holding losses (78) (82)
Estimated Fair Value $ 1,924 $ 1,922
v3.25.0.1
Securities - Additional Information (Details)
 12 Months Ended
Dec. 31, 2024
USD ($)
Securities
Dec. 31, 2023
USD ($)
Securities
Dec. 31, 2022
USD ($)
Debt Securities, Available-for-Sale [Line Items]      
Number of available-for-sale securities sold 5 16  
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions 188    
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions 155    
Number of held-to-maturity securities in an unrealized loss position 22    
Number of Positions Held-to-Maturity, Securities in Continuous Unrealized Loss Positions, 12 Months or Longer 21    
Credit loss provision | $ $ 0 $ 0 $ 0
Various Obligations      
Debt Securities, Available-for-Sale [Line Items]      
Securities with a fair value | $ $ 36,900,000 $ 45,400,000  
v3.25.0.1
Securities - Schedule of Realized Gains and Losses on Sale of Securities (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]      
Gross gains $ 0 $ 68 $ 0
Gross losses (8) (113) 0
Net losses on sale of available-for-sale securities (8) (45) 0
Proceeds from sale of available-for-sale securities $ 7,533 $ 5,085 $ 0
v3.25.0.1
Securities - Summary of Amortized Cost and Fair Value by Contractual Maturity (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Available-for-Sale, Amortized Cost    
Due in one year or less $ 1,501  
Due in one year through five years 18,145  
Due in five through ten years 8,430  
Due in over ten years 20,410  
Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost 48,486  
Amortized cost 365,643 $ 319,082
Available-for-Sale, Estimated Fair Value    
Due in one year or less 1,473  
Due after one year through five years 16,902  
Due in five through ten years 7,570  
Due in over ten years 16,787  
Debt Securities, Held-to-Maturity, Maturity, without Single Maturity Date, Fair Value 42,732  
Available-for-sale securities, fair value 341,392 297,006
Held-to-Maturity, Amortized Cost    
Due in one year or less 987  
Due in one year through five years 2,150  
Due in five through ten years 0  
Due in over ten years 0  
Debt Securities, Held-to-Maturity, Amortized Cost, after Allowance for Credit Loss, Maturity, without Single Maturity Date 3,137  
Debt Securities, Held-to-Maturity, Amortized Cost, before Allowance for Credit Loss 6,741 8,503
Held-to-Maturity, Estimated Fair Value    
Due in one year or less 983  
Due in one year through five years 2,116  
Due in five through ten years 0  
Due in over ten years 0  
Debt Securities, Held-to-Maturity, Maturity, without Single Maturity Date, Fair Value 3,099  
Debt Securities, Held-to-Maturity, Fair Value 6,535 $ 8,255
Residential Mortgage-Backed Securities [Member]    
Available-for-Sale, Amortized Cost    
Amortized cost 271,459  
Available-for-Sale, Estimated Fair Value    
Available-for-sale securities, fair value 257,988  
Held-to-Maturity, Amortized Cost    
Debt Securities, Held-to-Maturity, Amortized Cost, before Allowance for Credit Loss 1,602  
Held-to-Maturity, Estimated Fair Value    
Debt Securities, Held-to-Maturity, Fair Value 1,512  
Commercial Mortgage-Backed Securities [Member]    
Available-for-Sale, Amortized Cost    
Amortized cost 45,698  
Available-for-Sale, Estimated Fair Value    
Available-for-sale securities, fair value 40,672  
Held-to-Maturity, Amortized Cost    
Debt Securities, Held-to-Maturity, Amortized Cost, before Allowance for Credit Loss 2,002  
Held-to-Maturity, Estimated Fair Value    
Debt Securities, Held-to-Maturity, Fair Value $ 1,924  
v3.25.0.1
Securities - Summary of Unrealized Loss for Securities Available-For-Sale (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Fair Value    
Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months $ 94,944 $ 47,366
Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss 1,794 495
Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer 161,809 164,447
Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss 23,185 22,969
Available-for-sale, Unrealized Loss Position 256,753 211,813
Available-for-sale, Unrealized Loss Position, Accumulated Loss 24,979 23,464
US Treasuries    
Fair Value    
Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months 0 0
Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss 0 0
Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer 4,718 4,595
Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss 271 389
Available-for-sale, Unrealized Loss Position 4,718 4,595
Available-for-sale, Unrealized Loss Position, Accumulated Loss 271 389
US government agency securities | Government Sponsored Enterprises    
Fair Value    
Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months 0 13,370
Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss 0 30
Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer 3,153 3,076
Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss 347 425
Available-for-sale, Unrealized Loss Position 3,153 16,446
Available-for-sale, Unrealized Loss Position, Accumulated Loss 347 455
Municipal Securities    
Fair Value    
Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months 0 0
Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss 0 0
Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer 34,861 35,881
Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss 5,136 4,526
Available-for-sale, Unrealized Loss Position 34,861 35,881
Available-for-sale, Unrealized Loss Position, Accumulated Loss 5,136 4,526
Residential Mortgage-backed Securities | GNMA    
Fair Value    
Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months 40,320 13,178
Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss 374 160
Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer 18,999 13,819
Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss 2,444 2,225
Available-for-sale, Unrealized Loss Position 59,319 26,997
Available-for-sale, Unrealized Loss Position, Accumulated Loss 2,818 2,385
Residential Mortgage-backed Securities | Government Sponsored Enterprises    
Fair Value    
Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months 43,907 19,925
Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss 995 285
Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer 71,103 78,086
Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss 10,362 10,484
Available-for-sale, Unrealized Loss Position 115,010 98,011
Available-for-sale, Unrealized Loss Position, Accumulated Loss 11,357 10,769
Commercial Mortgage-backed Securities | GNMA    
Fair Value    
Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months 0 0
Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss 0 0
Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer 2,224 2,525
Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss 441 470
Available-for-sale, Unrealized Loss Position 2,224 2,525
Available-for-sale, Unrealized Loss Position, Accumulated Loss 441 470
Commercial Mortgage-backed Securities | Government Sponsored Enterprises    
Fair Value    
Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months 10,717 893
Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss 425 20
Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer 26,751 26,465
Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss 4,184 4,450
Available-for-sale, Unrealized Loss Position 37,468 27,358
Available-for-sale, Unrealized Loss Position, Accumulated Loss $ 4,609 $ 4,470
v3.25.0.1
Securities - Summary of Unrecognized Loss for Securities Held-To-Maturity (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Fair Value    
Fair Value Less than 12 months $ 454 $ 1,424
Unrealized Loss Less than 12 months 5 4
Fair Value 12 months or longer 5,575 6,316
Unrealized Loss 12 months or longer 201 248
Total Fair Value 6,029 7,740
Total Unrealized Loss 206 252
Municipal Securities    
Fair Value    
Fair Value Less than 12 months 454 1,424
Unrealized Loss Less than 12 months 5 4
Fair Value 12 months or longer 2,139 2,234
Unrealized Loss 12 months or longer 33 37
Total Fair Value 2,593 3,658
Total Unrealized Loss 38 41
Residential Mortgage-backed Securities | GNMA    
Fair Value    
Fair Value Less than 12 months 0 0
Unrealized Loss Less than 12 months 0 0
Fair Value 12 months or longer 788 1,135
Unrealized Loss 12 months or longer 48 76
Total Fair Value 788 1,135
Total Unrealized Loss 48 76
Residential Mortgage-backed Securities | Government Sponsored Enterprises    
Fair Value    
Fair Value Less than 12 months 0 0
Unrealized Loss Less than 12 months 0 0
Fair Value 12 months or longer 724 1,025
Unrealized Loss 12 months or longer 42 53
Total Fair Value 724 1,025
Total Unrealized Loss 42 53
Commercial Mortgage-backed Securities | Government Sponsored Enterprises    
Fair Value    
Fair Value Less than 12 months 0 0
Unrealized Loss Less than 12 months 0 0
Fair Value 12 months or longer 1,924 1,922
Unrealized Loss 12 months or longer 78 82
Total Fair Value 1,924 1,922
Total Unrealized Loss $ 78 $ 82
v3.25.0.1
Loans, Lease Receivables, and Allowance for Credit Losses - Loan and Lease Receivables Composition (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Loans and Leases Receivable Disclosure        
Total gross loans and leases receivable $ 3,113,850 $ 2,850,018    
Allowance for loan losses 35,785 31,275 $ 24,230 $ 24,336
Deferred loan fees and costs, net 722 (243)    
Loans and leases receivable, net 3,077,343 2,818,986    
Commercial Real Estate        
Loans and Leases Receivable Disclosure        
Total gross loans and leases receivable 1,917,130 1,699,871    
Allowance for loan losses     12,560 15,110
Commercial Real Estate | Owner Occupied        
Loans and Leases Receivable Disclosure        
Total gross loans and leases receivable 273,397 256,479    
Allowance for loan losses 1,615 1,525    
Commercial Real Estate | Non-owner Occupied        
Loans and Leases Receivable Disclosure        
Total gross loans and leases receivable 845,298 773,494    
Allowance for loan losses 5,843 5,596    
Commercial Real Estate | Construction        
Loans and Leases Receivable Disclosure        
Total gross loans and leases receivable 221,086 193,080    
Allowance for loan losses 2,022 1,244    
Commercial Real Estate | Multi-family        
Loans and Leases Receivable Disclosure        
Total gross loans and leases receivable 530,853 450,529    
Allowance for loan losses 4,597 3,562    
Commercial Real Estate | 1-4 Family        
Loans and Leases Receivable Disclosure        
Total gross loans and leases receivable 46,496 26,289    
Commercial and Industrial        
Loans and Leases Receivable Disclosure        
Total gross loans and leases receivable 1,151,720 1,105,835    
Allowance for loan losses 20,934 18,710 11,128 8,413
Consumer and Other        
Loans and Leases Receivable Disclosure        
Total gross loans and leases receivable 45,000 44,312    
Allowance for loan losses $ 282 $ 395 $ 542 $ 813
v3.25.0.1
Loans, Lease Receivables, and Allowance for Credit Losses - Additional Information (Details) - USD ($)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Financing Receivable, Recorded Investment    
Guaranteed portion of SBA loans sold to third parties $ 20,700,000 $ 23,600,000
Amount of outstanding SBA loans sold 79,400,000 84,200,000
Loans and leases transferred to third parties principal amount 138,000,000 120,000,000
Gain (loss) recognized on participation interest in originated loans 0  
Amount of loan participation purchased 5,300,000 0
Amount of outstanding loans transferred to third parties as loan participations 373,100,000 279,500,000
Amount of partial ownership in loan participations transferred 423,700,000 367,400,000
Loans in the participation sold portfolio, considered impaired, gross amount 0 0
Financing Receivable, Excluding Accrued Interest, Modified in Period, Amount 14,014,000 882,000
Commercial and Industrial    
Financing Receivable, Recorded Investment    
Financing Receivable, Excluding Accrued Interest, Modified in Period, Amount 8,113,000 882,000
Commercial Real Estate    
Financing Receivable, Recorded Investment    
Financing Receivable, Excluding Accrued Interest, Modified in Period, Amount $ 5,901,000 $ 0
v3.25.0.1
Loans, Lease Receivables, and Allowance for Credit Losses - Schedule of Related Party Transactions (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Receivables [Abstract]    
Balance at beginning of year $ 263 $ 224
New loans 381 349
Repayments (399) (310)
Balance at end of year $ 245 $ 263
v3.25.0.1
Loans, Lease Receivables, and Allowance for Credit Losses - Net Investment In Direct Financing Leases (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Receivables [Abstract]    
Minimum lease payments receivable $ 8,975 $ 9,660
Estimated unguaranteed residual values in leased property 632 1,468
Unearned lease and residual income (1,148) (1,362)
Investment in commercial direct financing leases $ 8,459 $ 9,766
v3.25.0.1
Loans, Lease Receivables, and Allowance for Credit Losses - Summarr of Future Aggregate Maturities of Minimum Lease Payments to Be Received (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Receivables [Abstract]    
2025 $ 3,108  
2026 2,409  
2027 1,898  
2028 1,052  
2029 469  
Thereafter 39  
Minimum lease payments receivable $ 8,975 $ 9,660
v3.25.0.1
Loans, Lease Receivables, and Allowance for Credit Losses - Financing Receivable by Credit Quality Indicators (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Financing Receivable, Recorded Investment    
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year $ 471,051 $ 568,931
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year 582,921 423,678
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year 359,297 296,979
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year 243,299 304,487
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year 268,627 158,267
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year 663,098 586,727
Financing Receivable, Excluding Accrued Interest, Revolving 525,557 510,949
Loans and Leases Receivable, before Fees, Gross 3,113,850 2,850,018
Category I    
Financing Receivable, Recorded Investment    
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year 465,244 564,860
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year 570,105 404,711
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year 338,625 281,402
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year 228,739 289,670
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year 257,574 134,341
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year 599,491 542,295
Financing Receivable, Excluding Accrued Interest, Revolving 494,585 481,028
Loans and Leases Receivable, before Fees, Gross 2,954,363 2,698,307
Category II    
Financing Receivable, Recorded Investment    
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year 316 1,496
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year 2,700 5,280
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year 10,064 12,376
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year 2,584 8,577
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year 2,620 19,932
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year 32,771 16,493
Financing Receivable, Excluding Accrued Interest, Revolving 7,676 5,706
Loans and Leases Receivable, before Fees, Gross 58,731 69,860
Category III    
Financing Receivable, Recorded Investment    
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year 4,955 1,093
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year 6,056 7,168
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year 4,363 1,882
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year 10,938 5,919
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year 8,159 3,861
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year 27,726 26,273
Financing Receivable, Excluding Accrued Interest, Revolving 10,192 15,058
Loans and Leases Receivable, before Fees, Gross 72,389 61,254
Category IV    
Financing Receivable, Recorded Investment    
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year 536 1,482
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year 4,060 6,519
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year 6,245 1,319
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year 1,038 321
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year 274 133
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year 3,110 1,666
Financing Receivable, Excluding Accrued Interest, Revolving 13,104 9,157
Loans and Leases Receivable, before Fees, Gross 28,367 20,597
Commercial Real Estate    
Financing Receivable, Recorded Investment    
Loans and Leases Receivable, before Fees, Gross 1,917,130 1,699,871
Commercial Real Estate | Owner Occupied    
Financing Receivable, Recorded Investment    
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year 27,258 31,637
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year 45,066 43,156
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year 42,849 38,803
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year 34,486 44,964
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year 37,078 22,078
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year 86,213 75,390
Financing Receivable, Excluding Accrued Interest, Revolving 447 451
Loans and Leases Receivable, before Fees, Gross 273,397 256,479
Commercial Real Estate | Owner Occupied | Category I    
Financing Receivable, Recorded Investment    
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year 26,508 31,637
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year 45,066 43,156
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year 42,849 38,803
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year 34,486 44,704
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year 37,078 22,078
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year 85,405 72,774
Financing Receivable, Excluding Accrued Interest, Revolving 447 451
Loans and Leases Receivable, before Fees, Gross 271,839 253,603
Commercial Real Estate | Owner Occupied | Category II    
Financing Receivable, Recorded Investment    
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year 0 260
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Revolving 0 0
Loans and Leases Receivable, before Fees, Gross 0 260
Commercial Real Estate | Owner Occupied | Category III    
Financing Receivable, Recorded Investment    
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year 750 0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year 217 2,616
Financing Receivable, Excluding Accrued Interest, Revolving 0 0
Loans and Leases Receivable, before Fees, Gross 967 2,616
Commercial Real Estate | Owner Occupied | Category IV    
Financing Receivable, Recorded Investment    
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year 591 0
Financing Receivable, Excluding Accrued Interest, Revolving 0 0
Loans and Leases Receivable, before Fees, Gross 591 0
Commercial Real Estate | Non-owner Occupied    
Financing Receivable, Recorded Investment    
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year 80,371 71,857
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year 86,289 76,689
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year 89,181 74,962
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year 69,129 80,464
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year 87,388 86,100
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year 395,811 350,944
Financing Receivable, Excluding Accrued Interest, Revolving 37,129 32,478
Loans and Leases Receivable, before Fees, Gross 845,298 773,494
Commercial Real Estate | Non-owner Occupied | Category I    
Financing Receivable, Recorded Investment    
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year 80,371 71,857
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year 85,651 76,689
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year 89,181 72,660
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year 69,129 78,212
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year 85,238 66,262
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year 340,802 314,970
Financing Receivable, Excluding Accrued Interest, Revolving 37,129 32,478
Loans and Leases Receivable, before Fees, Gross 787,501 713,128
Commercial Real Estate | Non-owner Occupied | Category II    
Financing Receivable, Recorded Investment    
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year 0 2,302
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year 0 2,252
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year 2,150 19,838
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year 31,720 16,274
Financing Receivable, Excluding Accrued Interest, Revolving 0 0
Loans and Leases Receivable, before Fees, Gross 33,870 40,666
Commercial Real Estate | Non-owner Occupied | Category III    
Financing Receivable, Recorded Investment    
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year 638 0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year 23,289 19,700
Financing Receivable, Excluding Accrued Interest, Revolving 0 0
Loans and Leases Receivable, before Fees, Gross 23,927 19,700
Commercial Real Estate | Non-owner Occupied | Category IV    
Financing Receivable, Recorded Investment    
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Revolving 0 0
Loans and Leases Receivable, before Fees, Gross 0 0
Commercial Real Estate | Construction    
Financing Receivable, Recorded Investment    
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year 36,135 63,660
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year 110,437 83,161
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year 24,756 17,831
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year 9,338 6,456
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year 6,432 433
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year 5,783 6,528
Financing Receivable, Excluding Accrued Interest, Revolving 28,205 15,011
Loans and Leases Receivable, before Fees, Gross 221,086 193,080
Commercial Real Estate | Construction | Category I    
Financing Receivable, Recorded Investment    
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year 36,135 63,660
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year 110,437 83,161
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year 24,302 8,542
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year 1,183 744
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year 719 433
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year 5,520 6,528
Financing Receivable, Excluding Accrued Interest, Revolving 28,205 15,011
Loans and Leases Receivable, before Fees, Gross 206,501 178,079
Commercial Real Estate | Construction | Category II    
Financing Receivable, Recorded Investment    
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year 0 9,289
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year 0 5,712
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Revolving 0 0
Loans and Leases Receivable, before Fees, Gross 0 15,001
Commercial Real Estate | Construction | Category III    
Financing Receivable, Recorded Investment    
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year 454 0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year 8,155 0
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year 5,713 0
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year 263 0
Financing Receivable, Excluding Accrued Interest, Revolving 0 0
Loans and Leases Receivable, before Fees, Gross 14,585 0
Commercial Real Estate | Construction | Category IV    
Financing Receivable, Recorded Investment    
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Revolving 0 0
Loans and Leases Receivable, before Fees, Gross 0 0
Commercial Real Estate | Multi-family    
Financing Receivable, Recorded Investment    
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year 40,079 84,932
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year 102,886 41,068
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year 82,160 70,054
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year 70,763 113,294
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year 97,303 22,925
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year 135,374 115,243
Financing Receivable, Excluding Accrued Interest, Revolving 2,288 3,013
Loans and Leases Receivable, before Fees, Gross 530,853 450,529
Commercial Real Estate | Multi-family | Category I    
Financing Receivable, Recorded Investment    
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year 40,079 84,932
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year 102,886 41,068
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year 74,753 70,054
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year 66,775 113,294
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year 97,303 22,925
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year 134,331 115,243
Financing Receivable, Excluding Accrued Interest, Revolving 2,288 3,013
Loans and Leases Receivable, before Fees, Gross 518,415 450,529
Commercial Real Estate | Multi-family | Category II    
Financing Receivable, Recorded Investment    
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year 7,407 0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year 2,584 0
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year 1,043 0
Financing Receivable, Excluding Accrued Interest, Revolving 0 0
Loans and Leases Receivable, before Fees, Gross 11,034 0
Commercial Real Estate | Multi-family | Category III    
Financing Receivable, Recorded Investment    
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year 1,404 0
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Revolving 0 0
Loans and Leases Receivable, before Fees, Gross 1,404 0
Commercial Real Estate | Multi-family | Category IV    
Financing Receivable, Recorded Investment    
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Revolving 0 0
Loans and Leases Receivable, before Fees, Gross 0 0
Commercial Real Estate | 1-4 Family    
Financing Receivable, Recorded Investment    
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year 15,220 4,242
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year 4,200 7,684
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year 7,005 2,672
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year 2,336 2,359
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year 2,282 443
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year 2,178 2,827
Financing Receivable, Excluding Accrued Interest, Revolving 13,275 6,062
Loans and Leases Receivable, before Fees, Gross 46,496 26,289
Commercial Real Estate | 1-4 Family | Category I    
Financing Receivable, Recorded Investment    
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year 15,220 4,242
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year 4,200 7,684
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year 7,005 2,672
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year 2,336 2,359
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year 2,282 443
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year 2,178 2,805
Financing Receivable, Excluding Accrued Interest, Revolving 13,275 6,062
Loans and Leases Receivable, before Fees, Gross 46,496 26,267
Commercial Real Estate | 1-4 Family | Category II    
Financing Receivable, Recorded Investment    
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Revolving 0 0
Loans and Leases Receivable, before Fees, Gross 0 0
Commercial Real Estate | 1-4 Family | Category III    
Financing Receivable, Recorded Investment    
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Revolving 0 0
Loans and Leases Receivable, before Fees, Gross 0 0
Commercial Real Estate | 1-4 Family | Category IV    
Financing Receivable, Recorded Investment    
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year 0 22
Financing Receivable, Excluding Accrued Interest, Revolving 0 0
Loans and Leases Receivable, before Fees, Gross 0 22
Commercial and Industrial    
Financing Receivable, Recorded Investment    
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year 265,033 306,683
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year 228,799 163,134
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year 105,930 89,490
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year 54,483 44,757
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year 27,150 24,239
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year 33,854 32,310
Financing Receivable, Excluding Accrued Interest, Revolving 436,471 445,222
Loans and Leases Receivable, before Fees, Gross 1,151,720 1,105,835
Commercial and Industrial | Category I    
Financing Receivable, Recorded Investment    
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year 259,976 302,612
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year 216,621 144,167
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year 93,119 85,504
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year 52,066 38,164
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year 23,960 20,151
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year 27,370 26,490
Financing Receivable, Excluding Accrued Interest, Revolving 405,499 415,301
Loans and Leases Receivable, before Fees, Gross 1,078,611 1,032,389
Commercial and Industrial | Category II    
Financing Receivable, Recorded Investment    
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year 316 1,496
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year 2,700 5,280
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year 2,657 785
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year 0 353
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year 470 94
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year 8 219
Financing Receivable, Excluding Accrued Interest, Revolving 7,676 5,706
Loans and Leases Receivable, before Fees, Gross 13,827 13,933
Commercial and Industrial | Category III    
Financing Receivable, Recorded Investment    
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year 4,205 1,093
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year 5,418 7,168
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year 3,909 1,882
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year 1,379 5,919
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year 2,446 3,861
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year 3,957 3,957
Financing Receivable, Excluding Accrued Interest, Revolving 10,192 15,058
Loans and Leases Receivable, before Fees, Gross 31,506 38,938
Commercial and Industrial | Category IV    
Financing Receivable, Recorded Investment    
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year 536 1,482
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year 4,060 6,519
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year 6,245 1,319
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year 1,038 321
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year 274 133
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year 2,519 1,644
Financing Receivable, Excluding Accrued Interest, Revolving 13,104 9,157
Loans and Leases Receivable, before Fees, Gross 27,776 20,575
Consumer and Other    
Financing Receivable, Recorded Investment    
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year 6,955 5,920
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year 5,244 8,786
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year 7,416 3,167
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year 2,764 12,193
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year 10,994 2,049
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year 3,885 3,485
Financing Receivable, Excluding Accrued Interest, Revolving 7,742 8,712
Loans and Leases Receivable, before Fees, Gross 45,000 44,312
Consumer and Other | Category I    
Financing Receivable, Recorded Investment    
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year 6,955 5,920
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year 5,244 8,786
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year 7,416 3,167
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year 2,764 12,193
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year 10,994 2,049
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year 3,885 3,485
Financing Receivable, Excluding Accrued Interest, Revolving 7,742 8,712
Loans and Leases Receivable, before Fees, Gross 45,000 44,312
Consumer and Other | Category II    
Financing Receivable, Recorded Investment    
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Revolving 0 0
Loans and Leases Receivable, before Fees, Gross 0 0
Consumer and Other | Category III    
Financing Receivable, Recorded Investment    
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Revolving 0 0
Loans and Leases Receivable, before Fees, Gross 0 0
Consumer and Other | Category IV    
Financing Receivable, Recorded Investment    
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year 0 0
Financing Receivable, Excluding Accrued Interest, Revolving 0 0
Loans and Leases Receivable, before Fees, Gross $ 0 $ 0
v3.25.0.1
Loans, Lease Receivables, and Allowance for Credit Losses -Delinquency Aging of Loan and Lease Portfolio by Class of Receivable (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable    
Total gross loans and leases receivable $ 3,113,850 $ 2,850,018
Percent of portfolio 100.00% 100.00%
30-59 Days Past Due    
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable    
Total gross loans and leases receivable $ 20,828 $ 3,430
Past due, percent of portfolio 0.67% 0.12%
60-89 Days Past Due    
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable    
Total gross loans and leases receivable $ 1,345 $ 1,041
Past due, percent of portfolio 0.04% 0.04%
Greater Than 90 Days Past Due    
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable    
Total gross loans and leases receivable $ 18,984 $ 18,347
Past due, percent of portfolio 0.61% 0.64%
Total Past Due    
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable    
Total gross loans and leases receivable $ 41,157 $ 22,818
Past due, percent of portfolio 1.32% 0.80%
Not Past Due    
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable    
Total gross loans and leases receivable $ 3,072,693 $ 2,827,200
Current, percent of portfolio 98.68% 99.20%
Commercial Real Estate    
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable    
Total gross loans and leases receivable $ 1,917,130 $ 1,699,871
Commercial Real Estate | Owner Occupied    
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable    
Total gross loans and leases receivable 273,397 256,479
Commercial Real Estate | Owner Occupied | 30-59 Days Past Due    
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable    
Total gross loans and leases receivable 1,102 0
Commercial Real Estate | Owner Occupied | 60-89 Days Past Due    
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable    
Total gross loans and leases receivable 0 0
Commercial Real Estate | Owner Occupied | Greater Than 90 Days Past Due    
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable    
Total gross loans and leases receivable 0 0
Commercial Real Estate | Owner Occupied | Total Past Due    
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable    
Total gross loans and leases receivable 1,102 0
Commercial Real Estate | Owner Occupied | Not Past Due    
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable    
Total gross loans and leases receivable 272,295 256,479
Commercial Real Estate | Non-owner Occupied    
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable    
Total gross loans and leases receivable 845,298 773,494
Commercial Real Estate | Non-owner Occupied | 30-59 Days Past Due    
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable    
Total gross loans and leases receivable 0 0
Commercial Real Estate | Non-owner Occupied | 60-89 Days Past Due    
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable    
Total gross loans and leases receivable 0 0
Commercial Real Estate | Non-owner Occupied | Greater Than 90 Days Past Due    
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable    
Total gross loans and leases receivable 0 0
Commercial Real Estate | Non-owner Occupied | Total Past Due    
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable    
Total gross loans and leases receivable 0 0
Commercial Real Estate | Non-owner Occupied | Not Past Due    
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable    
Total gross loans and leases receivable 845,298 773,494
Commercial Real Estate | Construction    
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable    
Total gross loans and leases receivable 221,086 193,080
Commercial Real Estate | Construction | 30-59 Days Past Due    
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable    
Total gross loans and leases receivable 14,321 0
Commercial Real Estate | Construction | 60-89 Days Past Due    
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable    
Total gross loans and leases receivable 263 0
Commercial Real Estate | Construction | Greater Than 90 Days Past Due    
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable    
Total gross loans and leases receivable 0 0
Commercial Real Estate | Construction | Total Past Due    
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable    
Total gross loans and leases receivable 14,584 0
Commercial Real Estate | Construction | Not Past Due    
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable    
Total gross loans and leases receivable 206,502 193,080
Commercial Real Estate | Multi-family    
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable    
Total gross loans and leases receivable 530,853 450,529
Commercial Real Estate | Multi-family | 30-59 Days Past Due    
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable    
Total gross loans and leases receivable 0 0
Commercial Real Estate | Multi-family | 60-89 Days Past Due    
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable    
Total gross loans and leases receivable 0 0
Commercial Real Estate | Multi-family | Greater Than 90 Days Past Due    
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable    
Total gross loans and leases receivable 0 0
Commercial Real Estate | Multi-family | Total Past Due    
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable    
Total gross loans and leases receivable 0 0
Commercial Real Estate | Multi-family | Not Past Due    
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable    
Total gross loans and leases receivable 530,853 450,529
Commercial Real Estate | 1-4 Family    
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable    
Total gross loans and leases receivable 46,496 26,289
Commercial Real Estate | 1-4 Family | 30-59 Days Past Due    
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable    
Total gross loans and leases receivable 0 0
Commercial Real Estate | 1-4 Family | 60-89 Days Past Due    
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable    
Total gross loans and leases receivable 0 0
Commercial Real Estate | 1-4 Family | Greater Than 90 Days Past Due    
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable    
Total gross loans and leases receivable 0 0
Commercial Real Estate | 1-4 Family | Total Past Due    
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable    
Total gross loans and leases receivable 0 0
Commercial Real Estate | 1-4 Family | Not Past Due    
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable    
Total gross loans and leases receivable 46,496 26,289
Commercial and Industrial    
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable    
Total gross loans and leases receivable 1,151,720 1,105,835
Commercial and Industrial | 30-59 Days Past Due    
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable    
Total gross loans and leases receivable 5,405 3,430
Commercial and Industrial | 60-89 Days Past Due    
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable    
Total gross loans and leases receivable 1,072 1,041
Commercial and Industrial | Greater Than 90 Days Past Due    
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable    
Total gross loans and leases receivable 18,984 18,347
Commercial and Industrial | Total Past Due    
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable    
Total gross loans and leases receivable 25,461 22,818
Commercial and Industrial | Not Past Due    
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable    
Total gross loans and leases receivable 1,126,259 1,083,017
Consumer and Other    
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable    
Total gross loans and leases receivable 45,000 44,312
Consumer and Other | 30-59 Days Past Due    
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable    
Total gross loans and leases receivable 0 0
Consumer and Other | 60-89 Days Past Due    
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable    
Total gross loans and leases receivable 10 0
Consumer and Other | Greater Than 90 Days Past Due    
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable    
Total gross loans and leases receivable 0 0
Consumer and Other | Total Past Due    
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable    
Total gross loans and leases receivable 10 0
Consumer and Other | Not Past Due    
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable    
Total gross loans and leases receivable $ 44,990 $ 44,312
v3.25.0.1
Loans, Lease Receivables, and Allowance for Credit Losses - Schedule of Non-Accrual Loans and Leases (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Financing Receivable, Impaired    
Non-accrual loans and leases, Non-accrual With No Allowance for Credit Loss $ 13,125 $ 9,691
Non-accrual loans and leases, Non-accrual With Allowance for Credit Loss 15,242 10,906
Non-accrual loans and leases, Loans Past Due Over 89 Days Still Accruing $ 0 $ 0
Total non-accrual loans and leases to gross loans and leases 0.91% 0.72%
Allowance for credit losses to gross loans and leases 1.20% 1.16%
Allowance for credit losses to non-accrual loans and leases 131.38% 160.21%
Commercial Real Estate    
Financing Receivable, Impaired    
Non-accrual loans and leases, Non-accrual With No Allowance for Credit Loss $ 0 $ 0
Non-accrual loans and leases, Non-accrual With Allowance for Credit Loss 591 22
Non-accrual loans and leases, Loans Past Due Over 89 Days Still Accruing 0 0
Commercial Real Estate | Owner Occupied    
Financing Receivable, Impaired    
Non-accrual loans and leases, Non-accrual With No Allowance for Credit Loss 0 0
Non-accrual loans and leases, Non-accrual With Allowance for Credit Loss 591 0
Non-accrual loans and leases, Loans Past Due Over 89 Days Still Accruing 0 0
Commercial Real Estate | Non-owner Occupied    
Financing Receivable, Impaired    
Non-accrual loans and leases, Non-accrual With No Allowance for Credit Loss 0 0
Non-accrual loans and leases, Non-accrual With Allowance for Credit Loss 0 0
Non-accrual loans and leases, Loans Past Due Over 89 Days Still Accruing 0 0
Commercial Real Estate | Construction    
Financing Receivable, Impaired    
Non-accrual loans and leases, Non-accrual With No Allowance for Credit Loss 0 0
Non-accrual loans and leases, Non-accrual With Allowance for Credit Loss 0 0
Non-accrual loans and leases, Loans Past Due Over 89 Days Still Accruing 0 0
Commercial Real Estate | Multi-family    
Financing Receivable, Impaired    
Non-accrual loans and leases, Non-accrual With No Allowance for Credit Loss 0 0
Non-accrual loans and leases, Non-accrual With Allowance for Credit Loss 0 0
Non-accrual loans and leases, Loans Past Due Over 89 Days Still Accruing 0 0
Commercial Real Estate | 1-4 Family    
Financing Receivable, Impaired    
Non-accrual loans and leases, Non-accrual With No Allowance for Credit Loss 0 0
Non-accrual loans and leases, Non-accrual With Allowance for Credit Loss 0 22
Non-accrual loans and leases, Loans Past Due Over 89 Days Still Accruing 0 0
Commercial and Industrial    
Financing Receivable, Impaired    
Non-accrual loans and leases, Non-accrual With No Allowance for Credit Loss 13,125 9,691
Non-accrual loans and leases, Non-accrual With Allowance for Credit Loss 14,651 10,884
Non-accrual loans and leases, Loans Past Due Over 89 Days Still Accruing 0 0
Consumer and Other    
Financing Receivable, Impaired    
Non-accrual loans and leases, Non-accrual With No Allowance for Credit Loss 0 0
Non-accrual loans and leases, Non-accrual With Allowance for Credit Loss 0 0
Non-accrual loans and leases, Loans Past Due Over 89 Days Still Accruing $ 0 $ 0
v3.25.0.1
Loans, Lease Receivables, and Allowance for Credit Losses - Schedule of Collateral Dependent commercial and industrial loans (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Financing Receivable, Nonaccrual [Line Items]    
Amortized cost basis of non-accrual loans $ 26,502 $ 19,454
Inventory    
Financing Receivable, Nonaccrual [Line Items]    
Amortized cost basis of non-accrual loans 0 8,879
Equipment    
Financing Receivable, Nonaccrual [Line Items]    
Amortized cost basis of non-accrual loans 18,185 8,903
Real Estate    
Financing Receivable, Nonaccrual [Line Items]    
Amortized cost basis of non-accrual loans 926 46
Accounts Receivable    
Financing Receivable, Nonaccrual [Line Items]    
Amortized cost basis of non-accrual loans 6,570 278
Other    
Financing Receivable, Nonaccrual [Line Items]    
Amortized cost basis of non-accrual loans $ 821 $ 1,348
v3.25.0.1
Loans, Lease Receivables, and Allowance for Credit Losses - Schedule of Amortized Cost Basis of Loan (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis $ 14,014 $ 882
Percentage of total loans 0.45% 0.03%
Principal Forgiveness    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis $ 0 $ 0
Payment Delay    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis 13,009 882
Term Extension    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis 455 0
Interest Rate Reduction    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis 0 0
Combination Term Extension and Payment Delay    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis 550 0
Commercial and Industrial    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis $ 8,113 $ 882
Percentage of total loans 0.70% 0.08%
Commercial and Industrial | Principal Forgiveness    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis $ 0 $ 0
Commercial and Industrial | Payment Delay    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis 7,108 882
Commercial and Industrial | Term Extension    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis 455 0
Commercial and Industrial | Interest Rate Reduction    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis 0 0
Commercial and Industrial | Combination Term Extension and Payment Delay    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis 550 0
Commercial Real Estate    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis $ 5,901 $ 0
Percentage of total loans 0.31% 0.00%
Commercial Real Estate | Principal Forgiveness    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis $ 0 $ 0
Commercial Real Estate | Payment Delay    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis 5,901 0
Commercial Real Estate | Term Extension    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis 0 0
Commercial Real Estate | Interest Rate Reduction    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis 0 0
Commercial Real Estate | Combination Term Extension and Payment Delay    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis $ 0 $ 0
v3.25.0.1
Loans, Lease Receivables, and Allowance for Credit Losses - Schedule of Corporation Closely Monitors the Performance of Loans (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis $ 14,014 $ 882
Commercial and Industrial    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis 8,113 882
Commercial Real Estate    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis 5,901 0
30-59 Days Past Due    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis 0 0
30-59 Days Past Due | Commercial and Industrial    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis 0 0
30-59 Days Past Due | Commercial Real Estate    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis 0 0
60-89 Days Past Due    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis 0 0
60-89 Days Past Due | Commercial and Industrial    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis 0 0
60-89 Days Past Due | Commercial Real Estate    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis 0 0
Greater Than 90 Days Past Due    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis 410 382
Greater Than 90 Days Past Due | Commercial and Industrial    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis 410 382
Greater Than 90 Days Past Due | Commercial Real Estate    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis 0 0
Total Past Due    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis 410 382
Total Past Due | Commercial and Industrial    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis 410 382
Total Past Due | Commercial Real Estate    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis $ 0 $ 0
v3.25.0.1
Loans, Lease Receivables, and Allowance for Credit Losses - Schedule of Financial Effect of Loan Modifications Presented to Borrowers Experiencing Financial Difficulty (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Financing Receivable, Modified [Line Items]    
Principal forgiveness $ 14,014 $ 882
Weighted average interest rate reduction 0.00% 0.00%
Weighted average term extension (years) 9 months 10 days 0 years
Weighted average payment delay (years) 1 year 10 months 24 days 6 months 7 days
Principal Forgiveness    
Financing Receivable, Modified [Line Items]    
Principal forgiveness $ 0 $ 0
Commercial and Industrial    
Financing Receivable, Modified [Line Items]    
Principal forgiveness $ 8,113 $ 882
Weighted average interest rate reduction 0.00% 0.00%
Weighted average term extension (years) 0 years 0 years
Weighted average payment delay (years) 1 year 2 months 1 day 0 years
Commercial and Industrial | Principal Forgiveness    
Financing Receivable, Modified [Line Items]    
Principal forgiveness $ 0 $ 0
Commercial Real Estate    
Financing Receivable, Modified [Line Items]    
Principal forgiveness $ 5,901 $ 0
Weighted average interest rate reduction 0.00% 0.00%
Weighted average term extension (years) 9 months 10 days 0 years
Weighted average payment delay (years) 8 months 23 days 6 months 7 days
Commercial Real Estate | Principal Forgiveness    
Financing Receivable, Modified [Line Items]    
Principal forgiveness $ 0 $ 0
v3.25.0.1
Loans, Lease Receivables, and Allowance for Credit Losses - Schedule of Amortized Cost Basis of Loans That Had Payment Default (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Principal Forgiveness    
Financing Receivable, Modified, Subsequent Default [Line Items]    
Financing Receivable, Excluding Accrued Interest, Modified, Subsequent Default $ 0 $ 0
Payment Delay    
Financing Receivable, Modified, Subsequent Default [Line Items]    
Financing Receivable, Excluding Accrued Interest, Modified, Subsequent Default 753 382
Term Extension    
Financing Receivable, Modified, Subsequent Default [Line Items]    
Financing Receivable, Excluding Accrued Interest, Modified, Subsequent Default 0 0
Interest Rate Reduction    
Financing Receivable, Modified, Subsequent Default [Line Items]    
Financing Receivable, Excluding Accrued Interest, Modified, Subsequent Default 0 0
Commercial and Industrial | Principal Forgiveness    
Financing Receivable, Modified, Subsequent Default [Line Items]    
Financing Receivable, Excluding Accrued Interest, Modified, Subsequent Default 0 0
Commercial and Industrial | Payment Delay    
Financing Receivable, Modified, Subsequent Default [Line Items]    
Financing Receivable, Excluding Accrued Interest, Modified, Subsequent Default 0 0
Commercial and Industrial | Term Extension    
Financing Receivable, Modified, Subsequent Default [Line Items]    
Financing Receivable, Excluding Accrued Interest, Modified, Subsequent Default 0 0
Commercial and Industrial | Interest Rate Reduction    
Financing Receivable, Modified, Subsequent Default [Line Items]    
Financing Receivable, Excluding Accrued Interest, Modified, Subsequent Default 0 0
Commercial Real Estate | Principal Forgiveness    
Financing Receivable, Modified, Subsequent Default [Line Items]    
Financing Receivable, Excluding Accrued Interest, Modified, Subsequent Default 0 0
Commercial Real Estate | Payment Delay    
Financing Receivable, Modified, Subsequent Default [Line Items]    
Financing Receivable, Excluding Accrued Interest, Modified, Subsequent Default 753 382
Commercial Real Estate | Term Extension    
Financing Receivable, Modified, Subsequent Default [Line Items]    
Financing Receivable, Excluding Accrued Interest, Modified, Subsequent Default 0 0
Commercial Real Estate | Interest Rate Reduction    
Financing Receivable, Modified, Subsequent Default [Line Items]    
Financing Receivable, Excluding Accrued Interest, Modified, Subsequent Default $ 0 $ 0
v3.25.0.1
Loans, Lease Receivables, and Allowance for Credit Losses - Summary of Activity in Allowance for Credit Losses by Portfolio Segment (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Allowance for credit losses roll-forward                      
Beginning balance       $ 32,997       $ 24,230 $ 32,997 $ 24,230  
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Beginning Balance       31,275       24,230 31,275 24,230 $ 24,336
Charge-offs                 (5,255) (1,781) (979)
Recoveries                 699 548 4,741
Net recoveries (charge offs)                 (4,556) (1,233) 3,762
Provision for credit losses $ 2,701 $ 2,087 $ 1,713 2,326 $ 2,573 $ 1,817 $ 2,231 1,561 8,827 8,182 (3,868)
Ending balance 37,268       32,997       37,268 32,997 24,230
Allowance for credit losses on unfunded credit commitments 1,483       1,722       1,483 1,722  
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Ending Balance 35,785       31,275       35,785 31,275 24,230
Impact of adopting ASC 326                      
Allowance for credit losses roll-forward                      
Beginning balance               1,818   1,818  
Ending balance                     1,818
Commercial Real Estate                      
Allowance for credit losses roll-forward                      
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Beginning Balance               12,560   12,560 15,110
Charge-offs                     0
Recoveries                     4,262
Net recoveries (charge offs)                     4,262
Provision for credit losses                     (6,812)
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Ending Balance                     12,560
Commercial Real Estate | Owner Occupied                      
Allowance for credit losses roll-forward                      
Beginning balance       1,540       1,766 1,540 1,766  
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Beginning Balance       1,525         1,525    
Charge-offs                 0 0  
Recoveries                 5 9  
Net recoveries (charge offs)                 5 9  
Provision for credit losses                 84 (31)  
Ending balance 1,629       1,540       1,629 1,540 1,766
Allowance for credit losses on unfunded credit commitments 14       15       14 15  
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Ending Balance 1,615       1,525       1,615 1,525  
Commercial Real Estate | Owner Occupied | Impact of adopting ASC 326                      
Allowance for credit losses roll-forward                      
Beginning balance               (204)   (204)  
Ending balance                     (204)
Commercial Real Estate | Non-owner Occupied                      
Allowance for credit losses roll-forward                      
Beginning balance       5,636       5,108 5,636 5,108  
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Beginning Balance       5,596         5,596    
Charge-offs                 0 0  
Recoveries                 0 1  
Net recoveries (charge offs)                 0 1  
Provision for credit losses                 256 769  
Ending balance 5,892       5,636       5,892 5,636 5,108
Allowance for credit losses on unfunded credit commitments 49       40       49 40  
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Ending Balance 5,843       5,596       5,843 5,596  
Commercial Real Estate | Non-owner Occupied | Impact of adopting ASC 326                      
Allowance for credit losses roll-forward                      
Beginning balance               (242)   (242)  
Ending balance                     (242)
Commercial Real Estate | Construction                      
Allowance for credit losses roll-forward                      
Beginning balance       2,125       1,646 2,125 1,646  
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Beginning Balance       1,244         1,244    
Charge-offs                 0 0  
Recoveries                 0 0  
Net recoveries (charge offs)                 0 0  
Provision for credit losses                 701 (317)  
Ending balance 2,826       2,125       2,826 2,125 1,646
Allowance for credit losses on unfunded credit commitments 804       881       804 881  
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Ending Balance 2,022       1,244       2,022 1,244  
Commercial Real Estate | Construction | Impact of adopting ASC 326                      
Allowance for credit losses roll-forward                      
Beginning balance               796   796  
Ending balance                     796
Commercial Real Estate | Multi-family                      
Allowance for credit losses roll-forward                      
Beginning balance       3,571       2,634 3,571 2,634  
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Beginning Balance       3,562         3,562    
Charge-offs                 0 0  
Recoveries                 0 0  
Net recoveries (charge offs)                 0 0  
Provision for credit losses                 1,042 1,323  
Ending balance 4,613       3,571       4,613 3,571 2,634
Allowance for credit losses on unfunded credit commitments 16       9       16 9  
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Ending Balance 4,597       3,562       4,597 3,562  
Commercial Real Estate | Multi-family | Impact of adopting ASC 326                      
Allowance for credit losses roll-forward                      
Beginning balance               (386)   (386)  
Ending balance                     (386)
Commercial Real Estate | 1-4 Family                      
Allowance for credit losses roll-forward                      
Beginning balance       266       207 266 207  
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Beginning Balance       243         243    
Charge-offs                 0 0  
Recoveries                 132 40  
Net recoveries (charge offs)                 132 40  
Provision for credit losses                 125 64  
Ending balance 523       266       523 266 207
Allowance for credit losses on unfunded credit commitments 31       23       31 23  
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Ending Balance 492       243       492 243  
Commercial Real Estate | 1-4 Family | Impact of adopting ASC 326                      
Allowance for credit losses roll-forward                      
Beginning balance               (45)   (45)  
Ending balance                     (45)
Commercial and Industrial                      
Allowance for credit losses roll-forward                      
Beginning balance       19,408       12,403 19,408 12,403  
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Beginning Balance       18,710       11,128 18,710 11,128 8,413
Charge-offs                 (5,233) (1,781) (958)
Recoveries                 541 478 437
Net recoveries (charge offs)                 (4,692) (1,303) (521)
Provision for credit losses                 6,754 6,435 3,236
Ending balance 21,470       19,408       21,470 19,408 12,403
Allowance for credit losses on unfunded credit commitments 536       698       536 698  
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Ending Balance 20,934       18,710       20,934 18,710 11,128
Commercial and Industrial | Impact of adopting ASC 326                      
Allowance for credit losses roll-forward                      
Beginning balance               1,873   1,873  
Ending balance                     1,873
Consumer and Other                      
Allowance for credit losses roll-forward                      
Beginning balance       451       466 451 466  
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Beginning Balance       $ 395       542 395 542 813
Charge-offs                 (22) 0 (21)
Recoveries                 21 20 42
Net recoveries (charge offs)                 (1) 20 21
Provision for credit losses                 (135) (61) (292)
Ending balance 315       451       315 451 466
Allowance for credit losses on unfunded credit commitments 33       56       33 56  
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Ending Balance $ 282       $ 395       $ 282 395 542
Consumer and Other | Impact of adopting ASC 326                      
Allowance for credit losses roll-forward                      
Beginning balance               $ 26   $ 26  
Ending balance                     $ 26
v3.25.0.1
Loans, Lease Receivables, and Allowance for Credit Losses - Allowance for Credit Losses and Balances by Type of Allowance Methodology (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Financing Receivable, Allowance for Credit Losses        
Allowance for credit losses, collectively evaluated for impairment $ 26,867 $ 25,286    
Allowance for credit losses, individually evaluated for impairment 8,918 5,989    
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest 35,785 31,275 $ 24,230 $ 24,336
Loans and lease receivables, collectively evaluated for impairment 3,085,483 2,829,421    
Loans and lease receivables, individually evaluated for impairment 28,367 20,597    
Loans and Leases Receivable, before Fees, Gross 3,113,850 2,850,018    
Commercial Real Estate        
Financing Receivable, Allowance for Credit Losses        
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest     12,560 15,110
Loans and Leases Receivable, before Fees, Gross 1,917,130 1,699,871    
Commercial Real Estate | Owner Occupied        
Financing Receivable, Allowance for Credit Losses        
Allowance for credit losses, collectively evaluated for impairment 1,615 1,525    
Allowance for credit losses, individually evaluated for impairment 0 0    
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest 1,615 1,525    
Loans and lease receivables, collectively evaluated for impairment 272,806 256,479    
Loans and lease receivables, individually evaluated for impairment 591 0    
Loans and Leases Receivable, before Fees, Gross 273,397 256,479    
Commercial Real Estate | Non-owner Occupied        
Financing Receivable, Allowance for Credit Losses        
Allowance for credit losses, collectively evaluated for impairment 5,843 5,596    
Allowance for credit losses, individually evaluated for impairment 0 0    
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest 5,843 5,596    
Loans and lease receivables, collectively evaluated for impairment 845,298 773,494    
Loans and lease receivables, individually evaluated for impairment 0 0    
Loans and Leases Receivable, before Fees, Gross 845,298 773,494    
Commercial Real Estate | Construction        
Financing Receivable, Allowance for Credit Losses        
Allowance for credit losses, collectively evaluated for impairment 2,022 1,244    
Allowance for credit losses, individually evaluated for impairment 0 0    
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest 2,022 1,244    
Loans and lease receivables, collectively evaluated for impairment 221,086 193,080    
Loans and lease receivables, individually evaluated for impairment 0 0    
Loans and Leases Receivable, before Fees, Gross 221,086 193,080    
Commercial Real Estate | Multi-family        
Financing Receivable, Allowance for Credit Losses        
Allowance for credit losses, collectively evaluated for impairment 4,597 3,562    
Allowance for credit losses, individually evaluated for impairment 0 0    
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest 4,597 3,562    
Loans and lease receivables, collectively evaluated for impairment 530,853 450,529    
Loans and lease receivables, individually evaluated for impairment 0 0    
Loans and Leases Receivable, before Fees, Gross 530,853 450,529    
Commercial Real Estate | 1-4 Family        
Financing Receivable, Allowance for Credit Losses        
Allowance for credit losses, collectively evaluated for impairment 492 221    
Allowance for credit losses, individually evaluated for impairment 0 22    
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest 492 243    
Loans and lease receivables, collectively evaluated for impairment 46,496 26,267    
Loans and lease receivables, individually evaluated for impairment 0 22    
Loans and Leases Receivable, before Fees, Gross 46,496 26,289    
Commercial and Industrial        
Financing Receivable, Allowance for Credit Losses        
Allowance for credit losses, collectively evaluated for impairment 12,016 12,743    
Allowance for credit losses, individually evaluated for impairment 8,918 5,967    
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest 20,934 18,710 11,128 8,413
Loans and lease receivables, collectively evaluated for impairment 1,123,944 1,085,260    
Loans and lease receivables, individually evaluated for impairment 27,776 20,575    
Loans and Leases Receivable, before Fees, Gross 1,151,720 1,105,835    
Consumer and Other        
Financing Receivable, Allowance for Credit Losses        
Allowance for credit losses, collectively evaluated for impairment 282 395    
Allowance for credit losses, individually evaluated for impairment 0 0    
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest 282 395 $ 542 $ 813
Loans and lease receivables, collectively evaluated for impairment 45,000 44,312    
Loans and lease receivables, individually evaluated for impairment 0 0    
Loans and Leases Receivable, before Fees, Gross $ 45,000 $ 44,312    
v3.25.0.1
Premises and Equipment - Summary of Premises and Equipment (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Property, Plant and Equipment [Abstract]    
Leasehold improvements $ 5,572 $ 5,557
Furniture and equipment 9,480 9,361
Total premises and equipment 15,052 14,918
Less: accumulated depreciation (9,825) (8,728)
Total premises and equipment, net $ 5,227 $ 6,190
v3.25.0.1
Premises and Equipment - Additional Information (Details) - USD ($)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Property, Plant and Equipment [Abstract]      
Depreciation $ 1,100,000 $ 961,000 $ 578,000
Leasehold Improvements, Gross, Placed in Service During the Year   1,300,000 1,800,000
Furniture and Fixtures, Gross, Placed in Service During the Year   $ 606,000 $ 602,000
v3.25.0.1
Leases - Additional Information (Details) - USD ($)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Lessee, Lease, Description [Line Items]    
Lease liabilities $ 7,926,000 $ 8,954,000
Kansas City Metropolitan    
Lessee, Lease, Description [Line Items]    
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability, New Operating Leases During the Year 2,600,000  
Lease liabilities 3,700,000  
Tenant Improvement Allowance Recognized as a Lease Incentive 1,100,000  
Southeast Wisconsin    
Lessee, Lease, Description [Line Items]    
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability, New Operating Leases During the Year 1,600,000  
Lease liabilities 2,500,000  
Tenant Improvement Allowance Recognized as a Lease Incentive $ 991,000  
v3.25.0.1
Leases - Components of Lease expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Leases [Abstract]      
Operating lease cost $ 1,366 $ 1,411 $ 1,544
Short-term lease cost 140 200 148
Variable lease cost 572 576 604
Less: sublease income 0 (75) (179)
Total lease cost, net $ 2,078 $ 2,112 $ 2,117
v3.25.0.1
Leases - Operating Lease Quantitative Information (Details)
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Leases [Abstract]      
Weighted-average remaining lease term (in years) 6 years 11 months 4 days 7 years 8 months 12 days 8 years 21 days
Weighted-average discount rate 3.37% 3.61% 3.40%
v3.25.0.1
Leases - Maturity of Operating Lease Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Leases [Abstract]    
2025 $ 1,488  
2026 1,448  
2027 1,469  
2028 1,113  
2029 792  
Thereafter 2,808  
Total undiscounted cash flows 9,118  
Discount on cash flows (1,192)  
Total lease liability $ 7,926 $ 8,954
v3.25.0.1
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]    
Goodwill $ 10.7 $ 10.7
Loan servicing asset $ 1.2 $ 1.4
Discount rate 13.75% 14.50%
Constant prepayment rate 16.05% 15.50%
v3.25.0.1
Goodwill and Other Intangible Assets - Schedule of Servicing Asset and Related Valuation Allowance (Details) - Loan Servicing Rights - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Servicing Asset at Amortized Cost [Line Items]      
Carrying amount, net, beginning of year $ 1,356 $ 1,492 $ 1,601
Additions 390 437 525
Amortization (537) (500) (634)
Change in valuation allowance 36 (73) 0
Carrying amount, net, end of year 1,245 1,356 1,492
Beginning of year 88 15 15
Change in valuation allowance (36) 73 0
End of year $ 52 $ 88 $ 15
v3.25.0.1
Other Assets - Additional Information (Details) - USD ($)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Schedule of Equity Method Investments      
Investment in historic development entities $ 4,133,000 $ 2,393,000  
Capital Contributions to Historic Rehabilitation Tax Credits 2,500,000 285,000 $ 0
Investment in Low-Income Housing 40,300,000 33,300,000  
Capital Contributions to Low-Income Housing Tax Credits 14,600,000 24,000,000 11,500,000
Recognized tax credits and other benefits $ 7,600,000 $ 5,300,000  
Investment Program, Proportional Amortization Method, Elected, Income Tax Credit and Other Income Tax Benefit, before Amortization, Statement of Income or Comprehensive Income [Extensible Enumeration] Income Tax Expense (Benefit) Income Tax Expense (Benefit)  
Investment Program, Proportional Amortization Method, Elected, Income Tax Credit and Other Income Tax Benefit, before Amortization, Statement of Cash Flows [Extensible Enumeration] Amortization of tax credit investments Amortization of tax credit investments  
Amortization of tax credit investments $ 5,992,000 $ 4,053,000 1,035,000
Investment in limited partnerships 14,680,000 15,027,000  
SBIC Funds      
Schedule of Equity Method Investments      
Investment in limited partnerships 12,900,000 13,500,000  
Remaining commitment on Equity Method Investments 8,900,000    
Original Commitment to Equity Method Investments 20,000,000    
Income from Equity Method Investments 1,900,000 4,800,000 3,000,000
Loss on Equity Method Investments 69,000 101,000 0
Dane Workforce Housing Fund LLC      
Schedule of Equity Method Investments      
Investment in limited partnerships 1,100,000 916,000  
Remaining commitment on Equity Method Investments 853,000    
Original Commitment to Equity Method Investments 2,000,000    
Income from Equity Method Investments 16,000 13,000 8,000
Loss on Equity Method Investments 10,000 0 0
BankTech Ventures, LP      
Schedule of Equity Method Investments      
Investment in limited partnerships 622,000 569,000  
Remaining commitment on Equity Method Investments 380,000    
Original Commitment to Equity Method Investments 1,000,000    
Income from Equity Method Investments 14,000 211,000 0
Loss on Equity Method Investments $ 19,000 $ 2,000 $ 21,000
v3.25.0.1
Other Assets - Summary of Accrued Interest Receivable and Other Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]    
Accrued interest receivable $ 12,879 $ 13,275
Net deferred tax asset 12,599 9,508
Investment in historic development entities 4,133 2,393
Investment in low-income housing development entities 40,259 33,303
Investment in limited partnerships 14,680 15,027
Prepaid expenses 4,221 4,269
Other assets 10,288 13,283
Total accrued interest receivable and other assets $ 99,059 $ 91,058
v3.25.0.1
Deposits - Composition Of Deposits (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Deposits    
Deposits $ 3,107,140 $ 2,796,779
Average balance, deposits $ 2,893,661 $ 2,444,438
Deposits, weighted average interest rate during the period 3.37% 2.92%
Non-interest-bearing transaction accounts    
Deposits    
Deposits $ 436,111 $ 445,376
Average balance, deposits $ 441,313 $ 453,930
Deposits, weighted average interest rate during the period 0.00% 0.00%
Interest-bearing transaction accounts    
Deposits    
Deposits $ 965,637 $ 895,319
Average balance, deposits $ 884,321 $ 689,500
Deposits, weighted average interest rate during the period 3.82% 3.44%
Money market accounts    
Deposits    
Deposits $ 809,695 $ 711,245
Average balance, deposits $ 815,603 $ 681,336
Deposits, weighted average interest rate during the period 3.95% 3.25%
Certificates of deposit    
Deposits    
Deposits $ 184,986 $ 287,131
Average balance, deposits $ 237,228 $ 273,387
Deposits, weighted average interest rate during the period 4.59% 4.10%
Wholesale deposits    
Deposits    
Deposits $ 710,711 $ 457,708
Average balance, deposits $ 515,196 $ 346,285
Deposits, weighted average interest rate during the period 4.09% 4.14%
v3.25.0.1
Deposits - Time Deposits by Maturity (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
Deposits [Abstract]  
Time Deposit Maturities, Year One $ 519,303
Time Deposit Maturities, Year Two 76,281
Time Deposit Maturities, Year Three 79,850
Time Deposit Maturities, Year Four 18,102
Time Deposit Maturities, Year Five 5,782
Time Deposit Maturities, after Year Five 1,290
Time Deposits $ 700,608
v3.25.0.1
Deposits - Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Deposits    
Deposits, carrying amount $ 3,107,140 $ 2,796,779
Designated as Hedging Instrument | Interest rate swap related to certificate of deposits    
Deposits    
Derivative Asset, Notional Amount $ 416,300  
Derivative Asset, Average Remaining Maturity 3 years 7 months 24 days  
Derivative Asset, Weighted Average Rate 3.81%  
Wholesale Certificates of Deposit    
Deposits    
Deposits, carrying amount $ 515,600 407,700
Non-Reciprocal Interest-Bearing Transaction Accounts    
Deposits    
Deposits, carrying amount 195,100 50,000
Certificates of Deposits and Wholesale Deposits    
Deposits    
Time Deposits, $250,000 or More $ 67,300 $ 120,200
v3.25.0.1
FHLB Advances, Other Borrowings and Subordinated Notes and Debentures - Composition of Borrowed Funds (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 13, 2024
Aug. 15, 2024
Dec. 31, 2024
Dec. 31, 2023
Composition of Borrowed Funds        
Borrowed funds     $ 320,049 $ 330,916
Borrowed funds, average balance     $ 333,509 $ 390,881
Borrowed funds, interest rate during period     3.30% 2.79%
Federal Funds Purchased        
Composition of Borrowed Funds        
Borrowed funds     $ 0 $ 0
Borrowed funds, average balance     $ 2 $ 3
Borrowed funds, interest rate during period     38.40% 5.37%
FHLB Advances        
Composition of Borrowed Funds        
Borrowed funds     $ 265,350 $ 281,500
Borrowed funds, average balance     $ 282,437 $ 351,990
Borrowed funds, interest rate during period     2.73% 2.52%
Line of Credit        
Composition of Borrowed Funds        
Borrowed funds     $ 0 $ 0
Borrowed funds, average balance     $ 1,229 $ 38
Borrowed funds, interest rate during period     8.03% 7.26%
Other Borrowings        
Composition of Borrowed Funds        
Borrowed funds     $ 10 $ 20
Borrowed funds, average balance     $ 8 $ 600
Borrowed funds, interest rate during period     0.00% 8.33%
Subordinated Notes and Debentures        
Composition of Borrowed Funds        
Borrowed funds     $ 54,689 $ 49,396
Borrowed funds, average balance     $ 49,833 $ 38,250
Borrowed funds, interest rate during period 7.50% 5.50% 6.36% 5.16%
v3.25.0.1
FHLB Advances, Other Borrowings and Subordinated Notes and Debentures - Summary of Annual Maturities of Borrowings (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Debt Disclosure [Abstract]    
2025 $ 116,410  
2026 65,000  
2027 10,000  
2028 10,450  
2029 35,000  
Thereafter 83,189  
Borrowed funds $ 320,049 $ 330,916
v3.25.0.1
FHLB Advances, Other Borrowings and Subordinated Notes and Debentures - Additional Information (Details) - USD ($)
 12 Months Ended
Sep. 13, 2024
Aug. 15, 2024
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Short-term Debt [Line Items]          
Borrowed funds     $ 320,049,000 $ 330,916,000  
Credit line renewal terms     On February 20, 2025, the credit line was renewed for one additional year with pricing terms of 1-month term SOFR + 2.36% and a maturity date of February 19, 2026.    
Line of credit maturity date     Feb. 19, 2026    
Interest rate     3.30% 2.79%  
Total gross loans and leases receivable     $ 3,113,850,000 $ 2,850,018,000  
Line of credit commitment fee     13,000 13,000 $ 13,000
Debt issuance costs remaining     311,000    
FHLB Advances and Other Borrowings          
Short-term Debt [Line Items]          
Federal Home Loan Bank line of credit maximum available     709,800,000    
Federal Home Loan Bank unused line remaining     444,400,000    
Borrowed funds     265,400,000 281,500,000  
Total gross loans and leases receivable     $ 1,298,000,000 $ 1,172,000,000  
Maximum | FHLB Advances and Other Borrowings          
Short-term Debt [Line Items]          
Interest rate     4.95% 5.58%  
Minimum | FHLB Advances and Other Borrowings          
Short-term Debt [Line Items]          
Interest rate     1.19% 0.50%  
Interest Rate Swap Related to FHLB Borrowings | Designated as Hedging Instrument          
Short-term Debt [Line Items]          
Derivative notional amount     $ 68,400,000    
Derivatives weighted average remaining maturity     2 years 3 months 18 days    
Derivatives weighted average rate     1.98%    
Subordinated Notes          
Short-term Debt [Line Items]          
Borrowed funds     $ 54,689,000 $ 49,396,000  
Debt redeem and replace amount   $ 15,000,000      
Interest rate 7.50% 5.50% 6.36% 5.16%  
Debt instruments issued $ 20,000,000        
Maturity date Sep. 13, 2034        
Debt issuance costs remaining     $ 53,000    
Line of Credit          
Short-term Debt [Line Items]          
Federal Home Loan Bank line of credit maximum available     10,500,000    
Borrowed funds     $ 0    
v3.25.0.1
Preferred Stock - Additional Information (Details) - USD ($)
 12 Months Ended
Mar. 04, 2022
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Class of Stock [Line Items]        
Preferred stock, shares issued 12,500 12,500 12,500  
Aggregate liquidation preference $ 12,500,000      
Preferred stock, dividend rate, percentage 7.00% 7.00% 7.00%  
Preferred stock, par value   $ 0.01 $ 0.01  
Proceeds from issuance of preferred stock   $ 0 $ 0 $ 11,992,000
Preferred stock dividend   $ 875,000 875,000 $ 683,000
Series A Preferred Stock        
Class of Stock [Line Items]        
Preferred stock, dividend rate, percentage 7.00%      
Preferred stock, par value $ 0.01      
Preferred stock, liquidation preference per share $ 1,000 $ 1,000    
Proceeds from issuance of preferred stock $ 12,000,000      
Preferred stock dividend   $ 875,000 $ 875,000  
Preferred stock dividend payable at floating rate   5.39%    
v3.25.0.1
Regulatory Capital - Additional Information (Details)
$ in Billions
 12 Months Ended
Dec. 31, 2024
USD ($)
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]  
Description of Material Affects of Noncompliance Failure to meet minimum capital requirements can result in certain mandatory, and possibly additional discretionary actions on the part of regulators, that if undertaken, could have a direct material effect on the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory practices.
Common equity tier 1 capital to risk-weighted assets minimum ratio 0.045
Total capital to risk weighted assets minimum ratio 0.08
Tier 1 leverage capital ratio 0.04
Permit banking assets $ 15
Corporation comply conservation buffer ratio 0.025
Minimum  
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]  
Tier I capital to risk-weighted assets minimum ratio 0.04
Maximum  
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]  
Non publicly traded bank holding companies consolidated assets $ 1
Tier I capital to risk-weighted assets minimum ratio 0.06
v3.25.0.1
Regulatory Capital - Regulatory Capital Ratios (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Compliance with Regulatory Capital Requirements under Banking Regulations    
Total capital $ 421,639 $ 375,440
Total capital to risk-weighted assets 0.1208 0.1119
Total capital, Minimum Required for Capital Adequacy Purposes $ 279,330 $ 268,500
Total capital to risk-weighted assets, Minimum Required for Capital Adequacy Purposes 0.08 0.08
Capital Required for Capital Adequacy Plus Capital Conservation Buffer $ 366,621 $ 352,406
Capital Required for Capital Adequacy Plus Conservation Buffer to Risk Weighted Assets 10.50% 10.50%
Tier 1 capital $ 329,796 $ 293,338
Tier 1 capital to risk-weighted assets 0.0945 0.0874
Tier 1 capital, Minimum Required for Capital Adequacy Purposes $ 209,498 $ 201,375
Tier 1 capital to risk-weighted assets, Minimum Required for Capital Adequacy Purposes 0.06 0.06
Tier One Risk Based Capital Required for Capital Adequacy Plus Capital Conservation Buffer $ 296,788 $ 285,281
Tier One Risk Based Capital Required for Capital Adequacy Plus Conservation Buffer to Risk Weighted Assets 8.50% 8.50%
Common equity tier 1 capital $ 317,804 $ 281,346
Common equity tier 1 capital to risk-weighted assets 9.10% 8.38%
Common equity tier 1 capital, Minimum Required for Capital Adequacy Purposes $ 157,123 $ 151,031
Common equity tier 1 capital to risk-weighted assets, Minimum Required for Capital Adequacy Purposes 4.50% 4.50%
Common Equity Tier One Capital Required for Capital Adequacy Plus Capital Conservation Buffer $ 244,414 $ 234,937
Common Equity Tier One Capital Required for Capital Adequacy Plus Conservation Buffer to Risk Weighted Assets 7.00% 7.00%
Tier 1 leverage capital $ 329,796 $ 293,338
Tier 1 leverage capital to average assets 0.0878 0.0843
Tier 1 leverage capital, Minimum Required for Capital Adequacy Purposes $ 150,256 $ 139,145
Tier 1 leverage capital to average assets, Minimum Required for Capital Adequacy Purposes 0.04 0.04
Tier One Leverage Capital Required for Capital Adequacy Plus Capital Conservation Buffer $ 150,256 $ 139,145
Tier One Leverage Capital Required for Capital Adequacy Plus Conservation Buffer to Risk Weighted Assets 4.00% 4.00%
First Business Bank    
Compliance with Regulatory Capital Requirements under Banking Regulations    
Total capital $ 417,965 $ 376,310
Total capital to risk-weighted assets 0.1197 0.1121
Total capital, Minimum Required for Capital Adequacy Purposes $ 279,342 $ 268,595
Total capital to risk-weighted assets, Minimum Required for Capital Adequacy Purposes 0.08 0.08
Capital Required for Capital Adequacy Plus Capital Conservation Buffer $ 366,636 $ 352,531
Capital Required for Capital Adequacy Plus Conservation Buffer to Risk Weighted Assets 10.50% 10.50%
Total capital, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements $ 349,177 $ 335,744
Total capital to risk-weighted assets, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements 0.10 0.10
Tier 1 capital $ 380,811 $ 343,604
Tier 1 capital to risk-weighted assets 0.1091 0.1023
Tier 1 capital, Minimum Required for Capital Adequacy Purposes $ 209,506 $ 201,446
Tier 1 capital to risk-weighted assets, Minimum Required for Capital Adequacy Purposes 0.06 0.06
Tier One Risk Based Capital Required for Capital Adequacy Plus Capital Conservation Buffer $ 296,801 $ 285,382
Tier One Risk Based Capital Required for Capital Adequacy Plus Conservation Buffer to Risk Weighted Assets 8.50% 8.50%
Tier 1 capital, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements $ 279,342 $ 268,595
Tier 1 capital to risk weighted assets, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements 0.08 0.08
Common equity tier 1 capital $ 380,811 $ 343,604
Common equity tier 1 capital to risk-weighted assets 10.91% 10.23%
Common equity tier 1 capital, Minimum Required for Capital Adequacy Purposes $ 157,130 $ 151,085
Common equity tier 1 capital to risk-weighted assets, Minimum Required for Capital Adequacy Purposes 4.50% 4.50%
Common Equity Tier One Capital Required for Capital Adequacy Plus Capital Conservation Buffer $ 244,424 $ 235,021
Common Equity Tier One Capital Required for Capital Adequacy Plus Conservation Buffer to Risk Weighted Assets 7.00% 7.00%
Common equity tier 1 capital, Minimum Required to Be Well Capitalized Under Prompt Corrective Action Requirements $ 226,965 $ 218,233
Common equity tier 1 capital to risk-weighted assets, Minimum Required to Be Well Capitalized Under Prompt Corrective Action Requirements 6.50% 6.50%
Tier 1 leverage capital $ 380,811 $ 343,604
Tier 1 leverage capital to average assets 0.1014 0.0987
Tier 1 leverage capital, Minimum Required for Capital Adequacy Purposes $ 150,207 $ 139,262
Tier 1 leverage capital to average assets, Minimum Required for Capital Adequacy Purposes 0.04 0.04
Tier One Leverage Capital Required for Capital Adequacy Plus Capital Conservation Buffer $ 150,207 $ 139,262
Tier One Leverage Capital Required for Capital Adequacy Plus Conservation Buffer to Risk Weighted Assets 4.00% 4.00%
Tier 1 leverage capital, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements $ 187,759 $ 174,077
Tier 1 leverage capital to average assets, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements 0.05 0.05
v3.25.0.1
Regulatory Capital - Reconciliation of Stockholders' Equity to Federal Regulatory Capital (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]        
Stockholders' equity of the Corporation $ 328,589 $ 289,588 $ 260,640 $ 232,422
Net unrealized and accumulated losses on specific items 11,425 13,717    
Disallowed servicing assets (514) (614)    
Disallowed goodwill and other intangibles (10,380) (10,368)    
Equity Impact Of ASC326 Phase In 676 1,015    
Tier 1 capital 329,796 293,338    
Allowable general valuation allowances and subordinated debt 91,843 82,102    
Total Capital $ 421,639 $ 375,440    
v3.25.0.1
Earnings Per Common Share - Summary of Earnings Per Common Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Basic earnings per common share                      
Net income $ 14,415 $ 10,526 $ 10,456 $ 8,848 $ 9,770 $ 9,941 $ 8,337 $ 8,979 $ 44,245 $ 37,027 $ 40,858
Less: preferred stock dividends                 875 875 683
Less: earnings allocated to participating securities                 1,033 938 1,106
Basic earnings allocated to common shareholders                 $ 42,337 $ 35,214 $ 39,069
Weighted-average common shares outstanding, excluding participating securities                 8,148,259 8,131,251 8,226,943
Basic earnings per common share $ 1.71 $ 1.24 $ 1.23 $ 1.04 $ 1.15 $ 1.17 $ 0.98 $ 1.05 $ 5.2 $ 4.33 $ 4.75
Diluted earnings per common share                      
Earnings allocated to common shareholders, diluted                 $ 42,337 $ 35,214 $ 39,069
Weighted-average diluted common shares outstanding, excluding participating securities                 8,148,259 8,131,251 8,226,943
Diluted earnings per common share $ 1.71 $ 1.24 $ 1.23 $ 1.04 $ 1.15 $ 1.17 $ 0.98 $ 1.05 $ 5.2 $ 4.33 $ 4.75
v3.25.0.1
Share-Based Compensation - Additional Information (Details)
 12 Months Ended
Dec. 31, 2024
shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Share-based compensation arrangement by share-based payment award, number of shares available for grant 254,729
Issuance of common stock under the employee stock purchase plan, shares 3,832
Restricted Stock | Minimum  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Requisite service and performance period 3 years
Restricted Stock | Maximum  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Requisite service and performance period 4 years
Performance-Based Restricted Stock Units  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Award vesting period 3 years
Requisite service and performance period 3 years
Performance-Based Restricted Stock Units | Minimum  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Percentage of target shares granted 0.00%
Performance-Based Restricted Stock Units | Maximum  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Percentage of target shares granted 200.00%
Employee Stock Purchase Plan  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Share-based compensation arrangement by share-based payment award, number of shares available for grant 226,806
Shares authorized for issuance 250,000
Purchase price of common stock, percentage on fair value 90.00%
v3.25.0.1
Share-Based Compensation - Summary of Restricted Stock Activity (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of restricted shares/units, Nonvested beginning balance 185,093 196,857 209,789
Number of restricted shares/units, Granted 93,331 89,795 103,010
Number of restricted shares/units, Vested (102,986) (96,304) (107,435)
Number of restricted shares/units, Forfeited (16,751) (5,255) (8,507)
Number of restricted shares/units, Nonvested ending balance 158,687 185,093 196,857
Weighted Average Grant Price, Nonvested beginning balance $ 32.38 $ 29.32 $ 24.62
Weighted Average Grant Price, Granted 31.71 34.96 30.47
Weighted Average Grant Price, Vested 24.57 28.6 21.49
Weighted Average Grant Price, Forfeited 33.18 31.17 26.15
Weighted Average Grant Price, Nonvested ending balance $ 36.77 $ 32.38 $ 29.32
Unrecognized compensation cost $ 3,645    
Weighted average remaining recognition period (in years) 2 years 1 month 17 days    
Restricted Stock      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of restricted shares/units, Nonvested beginning balance 71,951 133,317 141,617
Number of restricted shares/units, Granted 0 0 62,560
Number of restricted shares/units, Vested (35,131) (56,931) (62,353)
Number of restricted shares/units, Forfeited (7,924) (4,435) (8,507)
Number of restricted shares/units, Nonvested ending balance 28,896 71,951 133,317
Weighted Average Grant Price, Nonvested beginning balance $ 28.53 $ 27.95 $ 23.06
Weighted Average Grant Price, Granted 0 0 34.04
Weighted Average Grant Price, Vested 26.86 27.03 23.21
Weighted Average Grant Price, Forfeited 29.75 30.2 26.15
Weighted Average Grant Price, Nonvested ending balance $ 30.09 $ 28.53 $ 27.95
Unrecognized compensation cost $ 416    
Weighted average remaining recognition period (in years) 1 year 25 days    
Performance Shares      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of restricted shares/units, Nonvested beginning balance 56,155 57,435 63,120
Number of restricted shares/units, Granted 27,614 34,840 37,335
Number of restricted shares/units, Vested (34,139) (36,120) (43,020)
Number of restricted shares/units, Forfeited 0 0 0
Number of restricted shares/units, Nonvested ending balance 49,630 56,155 57,435
Weighted Average Grant Price, Nonvested beginning balance $ 35.7 $ 32.89 $ 28.2
Weighted Average Grant Price, Granted 34.76 35.79 24.71
Weighted Average Grant Price, Vested 25.43 31.31 18.91
Weighted Average Grant Price, Forfeited 0 0 0
Weighted Average Grant Price, Nonvested ending balance $ 42.24 $ 35.7 $ 32.89
Unrecognized compensation cost $ 1,037    
Weighted average remaining recognition period (in years) 1 year 8 months 8 days    
Restricted Stock Units (RSUs)      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of restricted shares/units, Nonvested beginning balance 56,987 6,105 5,052
Number of restricted shares/units, Granted 65,717 54,955 3,115
Number of restricted shares/units, Vested (33,716) (3,253) (2,062)
Number of restricted shares/units, Forfeited (8,827) (820) 0
Number of restricted shares/units, Nonvested ending balance 80,161 56,987 6,105
Weighted Average Grant Price, Nonvested beginning balance $ 33.97 $ 25.92 $ 23.56
Weighted Average Grant Price, Granted 30.43 34.43 27.95
Weighted Average Grant Price, Vested 21.25 26.06 23.2
Weighted Average Grant Price, Forfeited 36.25 36.42 0
Weighted Average Grant Price, Nonvested ending balance $ 36.04 $ 33.97 $ 25.92
Unrecognized compensation cost $ 2,192    
Weighted average remaining recognition period (in years) 2 years 6 months 18 days    
v3.25.0.1
Share-Based Compensation - Summary of Restricted Stock Activity (Parenthetical) (Details)
 12 Months Ended
Dec. 31, 2024
shares
Performance Shares  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Additional shares issued 10,589
v3.25.0.1
Share-Based Compensation - Summary of Share-Based Compensation Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]      
Share-based compensation $ 2,785 $ 2,977 $ 2,584
v3.25.0.1
Employee Benefit Plans - Additional Information (Details) - USD ($)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Retirement Benefits [Abstract]      
Defined contribution maximum annual matching contribution per employee, percent 3.00%    
Defined contribution maximum annual discretionary contribution per employee, percent 6.00%    
Defined contribution plan, employer matching contribution, percent 3.00%    
Defined contribution plan employer matching contribution $ 1,200,000 $ 1,200,000 $ 1,100,000
Defined contribution plan employer discretionary contribution percent 4.34% 5.90% 5.20%
Defined contribution plan, employer discretionary contribution amount $ 1,700,000 $ 2,100,000 $ 1,600,000
Deferred compensation plan compensation expense 523,000 493,000 $ 382,000
Present value of future payments under the remaining deferred compensation plan liability $ 3,300,000 $ 2,800,000  
v3.25.0.1
Employee Benefit Plans - Bank Owned Life Insurance - Additional Information (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Bank Owned Life Insurance [Line Items]    
Bank-owned life insurance $ 57,210 $ 55,536
Bank owned life insurance death benefits 133,800 133,700
Insured executive officers with deferred compensation plans    
Bank Owned Life Insurance [Line Items]    
Bank-owned life insurance 3,200 3,100
Bank owned life insurance death benefits 6,200 6,200
Other insured individuals    
Bank Owned Life Insurance [Line Items]    
Bank-owned life insurance $ 54,000 $ 52,400
v3.25.0.1
Income Taxes - Schedule of Components of Income Tax Expense (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Current:                      
Federal                 $ 8,783 $ 7,759 $ 9,174
State                 1,635 233 2,987
Current tax expense                 10,418 7,992 12,161
Deferred:                      
Federal                 (1,263) (716) (733)
State                 (2,250) 2,836 (42)
Deferred tax expense (benefit)                 (3,513) 2,120 (775)
Total income tax expense $ 885 $ 2,351 $ 1,917 $ 1,752 $ 2,703 $ 2,079 $ 2,522 $ 2,808 $ 6,905 $ 10,112 $ 11,386
v3.25.0.1
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Deferred tax assets:    
Allowance for credit losses $ 9,820 $ 8,730
Deferred compensation 2,511 2,094
State net operating loss carryforwards 687 875
Write-down of repossessed assets 31 10
Non-accrual loan interest 222 95
Capital loss carryforwards 0 22
Unrealized losses on securities 4,136 4,715
Share-based compensation 761 788
Other 154 284
Total deferred tax assets before valuation allowance 18,322 17,613
Valuation allowance (1,568) (3,339)
Total deferred tax assets 16,754 14,274
Deferred tax liabilities:    
Leasing and fixed asset activities 1,361 1,854
Loan servicing asset 328 381
Other 2,466 2,531
Total deferred tax liabilities 4,155 4,766
Net deferred tax asset $ 12,599 $ 9,508
v3.25.0.1
Income Taxes - Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Operating Loss Carryforwards [Line Items]    
Deferred tax assets, valuation allowance $ 1,568 $ 3,339
Deferred tax assets, State taxes 2,100 0
Unrecognized tax benefits 0 0
Significant change in unrecognized tax benefits 0  
State and Local Jurisdiction    
Operating Loss Carryforwards [Line Items]    
Deferred tax assets, partial release of valuation allowance 1,700  
State net operating loss carryforwards $ 5,700 $ 16,400
v3.25.0.1
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Tax Disclosure [Abstract]                      
Income before income tax expense                 $ 51,150 $ 47,139 $ 52,244
Tax expense at statutory federal rate of 21% applied to income before income tax expense                 10,741 9,899 10,971
State income tax, net of federal effect                 1,441 (52) 2,337
Tax-exempt security and loan income, net of TEFRA adjustments                 (1,201) (856) (704)
Change in valuation allowance                 (1,888) 3,349 0
Bank-owned life insurance                 (346) (313) (468)
Tax credits, net                 (1,787) (1,045) (338)
Share-based compensation                 (251) (159) (392)
Section 162(m) limitation                 106 123 118
Other                 90 (834) (138)
Total income tax expense $ 885 $ 2,351 $ 1,917 $ 1,752 $ 2,703 $ 2,079 $ 2,522 $ 2,808 $ 6,905 $ 10,112 $ 11,386
Effective tax rate                 13.50% 21.45% 21.79%
v3.25.0.1
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Parenthetical) (Details)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Tax Disclosure [Abstract]      
Statutory federal rate 21.00% 21.00% 21.00%
v3.25.0.1
Derivative Financial Instruments - Additional Information (Details) - USD ($)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Derivatives      
Accumulated derivative credit valuation adjustment $ 149,000 $ 117,000  
Interest Rate Swap Agreements on Loans with Third-party Counter Parties      
Derivatives      
Interest rate swaps - assets, fair value 56,600,000    
Interest rate swaps - liabilities, fair value 2,000,000    
Interest Rate Swap Related to AFS Securities | Designated as Hedging Instrument      
Derivatives      
Unrealized gains on interest rate swaps 390,000 22,000 $ 602,000
Gain (loss) recognized in income on ineffective portion of hedges 0 0 0
Interest Rate Swap Related to FHLB Borrowings | Designated as Hedging Instrument      
Derivatives      
Unrealized gains on interest rate swaps 4,700,000   8,500,000
Unrealized loss on interest rate swaps   3,500,000  
Gain (loss) recognized in income on ineffective portion of hedges $ 0 $ 0 $ 0
v3.25.0.1
Derivative Financial Instruments - Summary of Location and Fair Value of Derivative Instruments (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
USD ($)
Instrument
Dec. 31, 2023
USD ($)
Instrument
Derivatives not designated as hedging instruments, fair value    
Derivative Asset, Fair Value $ 65,762 $ 55,597
Derivative Liability, Fair Value $ 57,068 $ 51,949
Interest Rate Swap Agreements on Loans with Commercial Loan Customers | Not Designated as Hedging Instrument    
Derivatives not designated as hedging instruments, fair value    
Derivative Asset, Number of Instruments | Instrument 20 25
Derivative Asset, Notional Amount $ 232,488 $ 249,454
Derivative Asset, Weighted Average Maturity 4 years 6 months 18 days 6 years 3 months 29 days
Derivative Asset, Fair Value $ 2,015 $ 7,904
Derivative Liability, Number of Instruments Held | Instrument 86 81
Derivative Liability, Notional Amount $ 789,877 $ 689,702
Derivative Liability, Weighted Average Maturity 5 years 5 months 8 days 5 years 11 months 15 days
Derivative Liability, Fair Value $ 56,559 $ 51,138
Interest Rate Swap Agreements on Loans with Third-party Counter Parties | Not Designated as Hedging Instrument    
Derivatives not designated as hedging instruments, fair value    
Derivative Asset, Number of Instruments | Instrument 106 106
Derivative Asset, Notional Amount $ 1,022,365 $ 939,156
Derivative Asset, Weighted Average Maturity 5 years 2 months 26 days 6 years 21 days
Derivative Asset, Fair Value $ 54,544 $ 43,234
Interest Rate Swap Related to AFS Securities | Designated as Hedging Instrument    
Derivatives not designated as hedging instruments, fair value    
Derivative Asset, Number of Instruments | Instrument 11 11
Derivative Asset, Notional Amount $ 12,500 $ 12,500
Derivative Asset, Weighted Average Maturity 7 years 3 months 10 days 8 years 3 months 10 days
Derivative Asset, Fair Value $ 1,014 $ 624
Interest Rate Swap Related to Wholesale Funding | Designated as Hedging Instrument    
Derivatives not designated as hedging instruments, fair value    
Derivative Asset, Number of Instruments | Instrument 36 9
Derivative Asset, Notional Amount $ 384,655 $ 96,400
Derivative Asset, Weighted Average Maturity 3 years 11 months 12 days 2 years 5 months 19 days
Derivative Asset, Fair Value $ 8,189 $ 3,835
Derivative Liability, Number of Instruments Held | Instrument 10 29
Derivative Liability, Notional Amount $ 100,000 $ 306,255
Derivative Liability, Weighted Average Maturity 1 year 6 months 18 days 3 years 10 months 20 days
Derivative Liability, Fair Value $ 509 $ 811
v3.25.0.1
Commitments and Contingencies - Lending Related And Other Commitments (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Commitments to extend credit, primarily commercial loans    
Lending Related Commitments By Type [LineItems]    
Lending related commitments $ 1,046,598 $ 1,198,031
Standby letters of credit    
Lending Related Commitments By Type [LineItems]    
Lending related commitments $ 17,276 $ 17,938
v3.25.0.1
Commitments and Contingencies - Additional Information (Details) - USD ($)
Dec. 31, 2024
Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]    
Accrued credit losses for financial instruments with off-balance sheet risk $ 0 $ 0
SBA loans, probability of future losses $ 645,000,000 $ 955,000,000
v3.25.0.1
Commitments and Contingencies - SBA Recourse Reserve (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]    
Beginning balance $ 955 $ 441
SBA (benefit) recourse (104) 775
Charge-offs, net (206) (261)
Ending balance $ 645 $ 955
v3.25.0.1
Fair Value Disclosures - Additional Information (Details) - USD ($)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract]    
Fair value, assets, level 1 to level 2 transfers $ 0 $ 0
Fair value, assets, level 2 to Level 1 transfers 0 0
Fair value, assets, transfers into level 3 0 0
Fair value, assets, transfers out of level 3 0 0
Fair value, liabilities, level 1 to level 2 transfers 0 0
Fair value, liabilities, level 2 to level 1 transfers 0 0
Fair value, liabilities, transfers into level 3 0 0
Fair value, liabilities, transfers out of level 3 $ 0 0
Minimum    
Fair Value Measurement Inputs and Valuation Techniques    
Quantification of unobservable inputs for level 3 values for impaired loans 13.00%  
Maximum    
Fair Value Measurement Inputs and Valuation Techniques    
Quantification of unobservable inputs for level 3 values for impaired loans 100.00%  
Weighted Average    
Fair Value Measurement Inputs and Valuation Techniques    
Quantification of unobservable inputs for level 3 values for impaired loans 36.00%  
Fair Value on Non-recurring Basis | Collateral-dependent Loans    
Fair Value Measurement Inputs and Valuation Techniques    
Assets, Fair Value $ 7,500,000 $ 4,900,000
v3.25.0.1
Fair Value Disclosures - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Fair Value Recurring Basis - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
US Treasuries    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets, Fair Value $ 4,718 $ 13,776
US Treasuries | Fair Value Measurements - Level 1 Inputs    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets, Fair Value 0 0
US Treasuries | Fair Value Measurements - Level 2 Inputs    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets, Fair Value 4,718 13,776
US Treasuries | Fair Value Measurements - Level 3 Inputs    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets, Fair Value 0 0
U.S. Government Agency Securities - Government-Sponsored Enterprises    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets, Fair Value 3,153 27,566
U.S. Government Agency Securities - Government-Sponsored Enterprises | Fair Value Measurements - Level 1 Inputs    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets, Fair Value 0 0
U.S. Government Agency Securities - Government-Sponsored Enterprises | Fair Value Measurements - Level 2 Inputs    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets, Fair Value 3,153 27,566
U.S. Government Agency Securities - Government-Sponsored Enterprises | Fair Value Measurements - Level 3 Inputs    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets, Fair Value 0 0
Municipal Securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets, Fair Value 34,861 35,881
Municipal Securities | Fair Value Measurements - Level 1 Inputs    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets, Fair Value 0 0
Municipal Securities | Fair Value Measurements - Level 2 Inputs    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets, Fair Value 34,861 35,881
Municipal Securities | Fair Value Measurements - Level 3 Inputs    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets, Fair Value 0 0
Interest Rate Swaps    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets, Fair Value 65,762 55,597
Liabilities, Fair Value 57,068 51,949
Interest Rate Swaps | Fair Value Measurements - Level 1 Inputs    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets, Fair Value 0 0
Liabilities, Fair Value 0 0
Interest Rate Swaps | Fair Value Measurements - Level 2 Inputs    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets, Fair Value 65,762 55,597
Liabilities, Fair Value 57,068 51,949
Interest Rate Swaps | Fair Value Measurements - Level 3 Inputs    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets, Fair Value 0 0
Liabilities, Fair Value 0 0
GNMA | Residential Mortgage-backed Securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets, Fair Value 123,223 68,056
GNMA | Residential Mortgage-backed Securities | Fair Value Measurements - Level 1 Inputs    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets, Fair Value 0 0
GNMA | Residential Mortgage-backed Securities | Fair Value Measurements - Level 2 Inputs    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets, Fair Value 123,223 68,056
GNMA | Residential Mortgage-backed Securities | Fair Value Measurements - Level 3 Inputs    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets, Fair Value 0 0
GNMA | Commercial Mortgage-backed Securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets, Fair Value 2,224 2,525
GNMA | Commercial Mortgage-backed Securities | Fair Value Measurements - Level 1 Inputs    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets, Fair Value 0 0
GNMA | Commercial Mortgage-backed Securities | Fair Value Measurements - Level 2 Inputs    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets, Fair Value 2,224 2,525
GNMA | Commercial Mortgage-backed Securities | Fair Value Measurements - Level 3 Inputs    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets, Fair Value 0 0
Government Sponsored Enterprises | Residential Mortgage-backed Securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets, Fair Value 134,765 120,833
Government Sponsored Enterprises | Residential Mortgage-backed Securities | Fair Value Measurements - Level 1 Inputs    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets, Fair Value 0 0
Government Sponsored Enterprises | Residential Mortgage-backed Securities | Fair Value Measurements - Level 2 Inputs    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets, Fair Value 134,765 120,833
Government Sponsored Enterprises | Residential Mortgage-backed Securities | Fair Value Measurements - Level 3 Inputs    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets, Fair Value 0 0
Government Sponsored Enterprises | Commercial Mortgage-backed Securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets, Fair Value 38,448 28,369
Government Sponsored Enterprises | Commercial Mortgage-backed Securities | Fair Value Measurements - Level 1 Inputs    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets, Fair Value 0 0
Government Sponsored Enterprises | Commercial Mortgage-backed Securities | Fair Value Measurements - Level 2 Inputs    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets, Fair Value 38,448 28,369
Government Sponsored Enterprises | Commercial Mortgage-backed Securities | Fair Value Measurements - Level 3 Inputs    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets, Fair Value $ 0 $ 0
v3.25.0.1
Fair Value Disclosures - Assets and Liabilities Measured at Fair Value on a Non-recurring Basis (Details) - Fair Value on Non-recurring Basis - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Collateral-dependent Loans    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets, Fair Value $ 7,500 $ 4,900
Assets and liabilities measured at fair value 7,506 4,917
Collateral-dependent Loans | Fair Value Measurements - Level 1 Inputs    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets and liabilities measured at fair value 0 0
Collateral-dependent Loans | Fair Value Measurements - Level 2 Inputs    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets and liabilities measured at fair value 0 0
Collateral-dependent Loans | Fair Value Measurements - Level 3 Inputs    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets and liabilities measured at fair value 7,506 4,917
Repossessed Assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets and liabilities measured at fair value 51 247
Repossessed Assets | Fair Value Measurements - Level 1 Inputs    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets and liabilities measured at fair value 0 0
Repossessed Assets | Fair Value Measurements - Level 2 Inputs    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets and liabilities measured at fair value 0 0
Repossessed Assets | Fair Value Measurements - Level 3 Inputs    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets and liabilities measured at fair value 51 247
Loan Servicing Rights    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets and liabilities measured at fair value 1,245 1,356
Loan Servicing Rights | Fair Value Measurements - Level 1 Inputs    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets and liabilities measured at fair value 0 0
Loan Servicing Rights | Fair Value Measurements - Level 2 Inputs    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets and liabilities measured at fair value 0 0
Loan Servicing Rights | Fair Value Measurements - Level 3 Inputs    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets and liabilities measured at fair value $ 1,245 $ 1,356
v3.25.0.1
Fair Value Disclosures - Estimated Fair Values For Financial Instruments (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Financial assets:    
Cash and cash equivalents, carrying amount $ 157,702 $ 139,510
Cash and cash equivalents, fair value 157,702 139,510
Securities available-for-sale, at fair value 341,392 297,006
Securities held-to-maturity, carrying amount 6,741 8,503
Securities held-to-maturity, fair value 6,535 8,255
Loans held for sale, carrying amount 13,498 4,589
Loans Held-for-sale, fair value 14,577 4,956
Loans and leases receivable, net 3,077,343 2,818,986
Loans and lease receivables, net, fair value 3,049,890 2,789,731
Federal Home Loan Bank stock, carrying amount 11,616 12,042
Accrued interest receivable, carrying amount 12,879 13,275
Accrued interest receivable, fair value 12,879 13,275
Derivative Asset 65,762 55,597
Financial liabilities:    
Deposits, carrying amount 3,107,140 2,796,779
Deposits, fair value 3,107,068 2,795,463
Federal Home Loan Bank and other borrowings, carrying amount 320,049 330,916
Federal Home Loan Bank and other borrowings fair value 314,175 320,287
Accrued interest payable, carrying amount 10,175 10,860
Accrued interest payable, fair value 10,175 10,860
Derivatives 57,068 51,949
Standby letters of credit, carrying amount 209 190
Standby letters of credit, fair value 209 190
Interest Rate Swaps    
Financial assets:    
Derivative Asset 65,762 55,597
Interest rate swaps - assets, fair value 65,762 55,597
Financial liabilities:    
Derivatives 57,068 51,949
Interest rate swaps - liabilities, fair value 57,068 51,949
Fair Value Measurements - Level 1 Inputs    
Financial assets:    
Cash and cash equivalents, fair value 157,702 139,510
Securities available-for-sale, at fair value 0 0
Securities held-to-maturity, fair value 0 0
Loans Held-for-sale, fair value 0 0
Loans and lease receivables, net, fair value 0 0
Accrued interest receivable, fair value 12,879 13,275
Financial liabilities:    
Deposits, fair value 2,406,532 2,101,939
Federal Home Loan Bank and other borrowings fair value 0 0
Accrued interest payable, fair value 10,175 10,860
Standby letters of credit, fair value 0 0
Fair Value Measurements - Level 1 Inputs | Interest Rate Swaps    
Financial assets:    
Interest rate swaps - assets, fair value 0 0
Financial liabilities:    
Interest rate swaps - liabilities, fair value 0 0
Fair Value Measurements - Level 2 Inputs    
Financial assets:    
Cash and cash equivalents, fair value 0 0
Securities available-for-sale, at fair value 341,392 297,006
Securities held-to-maturity, fair value 6,535 8,255
Loans Held-for-sale, fair value 14,577 4,956
Loans and lease receivables, net, fair value 0 0
Accrued interest receivable, fair value 0 0
Financial liabilities:    
Deposits, fair value 700,536 693,524
Federal Home Loan Bank and other borrowings fair value 314,175 320,287
Accrued interest payable, fair value 0 0
Standby letters of credit, fair value 0 0
Fair Value Measurements - Level 2 Inputs | Interest Rate Swaps    
Financial assets:    
Interest rate swaps - assets, fair value 65,762 55,597
Financial liabilities:    
Interest rate swaps - liabilities, fair value 57,068 51,949
Fair Value Measurements - Level 3 Inputs    
Financial assets:    
Cash and cash equivalents, fair value 0 0
Securities available-for-sale, at fair value 0 0
Securities held-to-maturity, fair value 0 0
Loans Held-for-sale, fair value 0 0
Loans and lease receivables, net, fair value 3,049,890 2,789,731
Accrued interest receivable, fair value 0 0
Financial liabilities:    
Deposits, fair value 0 0
Federal Home Loan Bank and other borrowings fair value 0 0
Accrued interest payable, fair value 0 0
Standby letters of credit, fair value 209 190
Fair Value Measurements - Level 3 Inputs | Interest Rate Swaps    
Financial assets:    
Interest rate swaps - assets, fair value 0 0
Financial liabilities:    
Interest rate swaps - liabilities, fair value $ 0 $ 0
v3.25.0.1
Condensed Parent Only Financial Information - Schedule of Condensed Balance Sheets (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Assets        
Cash and cash equivalents $ 157,702 $ 139,510    
Premises and equipment, net 5,227 6,190    
Other assets 0 0 $ 0  
Total assets 3,853,215 3,507,846 2,976,611  
Liabilities and Stockholders’ Equity        
Subordinated notes and other borrowings 320,049 330,916    
Accrued interest payable and other liabilities 32,443 29,660    
Total liabilities 3,524,626 3,218,258    
Stockholders' equity 328,589 289,588 260,640 $ 232,422
Total liabilities and stockholders’ equity 3,853,215 3,507,846    
Parent company        
Assets        
Cash and cash equivalents 5,384 2,027 $ 3,129 $ 331
Investments in subsidiaries, at equity 379,604 339,854    
Premises and equipment, net 67 51    
Other assets 2,908 697    
Total assets 387,963 342,629    
Liabilities and Stockholders’ Equity        
Subordinated notes and other borrowings 54,689 49,396    
Accrued interest payable and other liabilities 4,685 3,645    
Total liabilities 59,374 53,041    
Stockholders' equity 328,589 289,588    
Total liabilities and stockholders’ equity $ 387,963 $ 342,629    
v3.25.0.1
Condensed Parent Only Financial Information - Schedule of Condensed Statements of Income (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Net interest expense $ 33,148 $ 31,007 $ 30,540 $ 29,511 $ 29,540 $ 28,596 $ 27,747 $ 26,705 $ 124,206 $ 112,588 $ 98,422
Non-interest income                      
Other non-interest income                 3,833 6,921 5,131
Total non-interest income 8,005 7,064 7,425 6,757 7,094 8,430 7,374 8,410 29,251 31,308 29,428
Non-interest expense 23,152 23,107 23,879 23,342 21,588 23,189 22,031 21,767 93,480 88,575 79,474
Gain (loss) before income tax benefit and equity in undistributed net income of consolidated subsidiaries                 51,150 47,139 52,244
Income tax benefit (885) (2,351) (1,917) (1,752) (2,703) (2,079) (2,522) (2,808) (6,905) (10,112) (11,386)
Net income $ 14,415 $ 10,526 $ 10,456 $ 8,848 $ 9,770 $ 9,941 $ 8,337 $ 8,979 44,245 37,027 40,858
Parent company                      
Net interest expense                 3,283 1,989 2,295
Non-interest income                      
Dividends from subsidiaries                 11,500 12,100 2,000
Consulting and rental income from consolidated subsidiaries                 5,812 5,644 5,794
Other non-interest income                 10 43 69
Total non-interest income                 17,322 17,787 7,863
Non-interest expense                 8,375 8,234 7,633
Gain (loss) before income tax benefit and equity in undistributed net income of consolidated subsidiaries                 5,664 7,564 (2,065)
Income tax benefit                 1,940 337 1,387
Gain (loss) before equity in undistributed net income of consolidated subsidiaries                 7,604 7,901 (678)
Equity in undistributed net income of consolidated subsidiaries                 36,641 29,126 41,536
Net income                 $ 44,245 $ 37,027 $ 40,858
v3.25.0.1
Condensed Parent Only Financial Information - Schedule of Condensed Statements of Cash Flows (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Operating activities                      
Net income $ 14,415 $ 10,526 $ 10,456 $ 8,848 $ 9,770 $ 9,941 $ 8,337 $ 8,979 $ 44,245 $ 37,027 $ 40,858
Adjustments to reconcile net income to net cash provided by operating activities:                      
Share-based compensation                 2,785 2,977 2,584
Excess tax benefit from share-based compensation                 186 194 264
Net cash provided by operating activities                 57,491 52,292 38,645
Investing activities                      
Proceeds from redemption of Trust II stock                 0 0 315
Net cash used in investing activities                 (328,472) (506,849) (245,267)
Financing activities                      
Net increase (decrease) in long-term borrowed funds                 283 (6,013) (5,132)
Proceeds from issuance of subordinated notes payable                 20,000 15,000 20,000
Repayment of subordinated notes payable                 (15,000) 0 (9,090)
Repayment of junior subordinated debentures                 0 0 (10,076)
Proceeds from issuance of preferred stock                 0 0 11,992
Purchase of treasury stock                 (1,270) (2,971) (6,126)
Preferred stock dividends paid                 (875) (875) (683)
Cash dividends paid                 (8,320) (7,578) (6,688)
Net proceeds from purchases of ESPP shares                 144 128 134
Net cash provided by financing activities                 289,173 491,385 252,194
Net increase in cash and cash equivalents                 18,192 36,828 45,572
Cash and cash equivalents at the beginning of the period       139,510         139,510    
Cash and cash equivalents at the end of the period 157,702       139,510       157,702 139,510  
Parent company                      
Operating activities                      
Net income                 44,245 37,027 40,858
Adjustments to reconcile net income to net cash provided by operating activities:                      
Equity in undistributed earnings of consolidated subsidiaries                 (36,641) (29,126) (41,536)
Share-based compensation                 2,785 2,977 2,584
Excess tax benefit from share-based compensation                 (219) (91) (91)
Net (decrease) increase in other liabilities                 (146) (1,854) 2,592
Other, net                 (1,639) 1,207 (530)
Net cash provided by operating activities                 8,385 10,140 3,877
Investing activities                      
Proceeds from redemption of Trust II stock                 0 0 315
Capital contributions to subsidiaries                 0 (15,000) 0
Net cash used in investing activities                 0 (15,000) 315
Financing activities                      
Net increase (decrease) in long-term borrowed funds                 293 54 (357)
Proceeds from issuance of subordinated notes payable                 20,000 15,000 20,000
Repayment of subordinated notes payable                 (15,000) 0 (9,090)
Repayment of junior subordinated debentures                 0 0 (10,076)
Proceeds from issuance of preferred stock                 0 0 11,992
Proceeds from purchased funds and other short-term debt                 0 0 (500)
Purchase of treasury stock                 (1,270) (2,971) (6,126)
Preferred stock dividends paid                 (875) (875) (683)
Cash dividends paid                 (8,320) (7,578) (6,688)
Net proceeds from purchases of ESPP shares                 144 128 134
Net cash provided by financing activities                 (5,028) 3,758 (1,394)
Net increase in cash and cash equivalents                 3,357 (1,102) 2,798
Cash and cash equivalents at the beginning of the period       $ 2,027       $ 3,129 2,027 3,129 331
Cash and cash equivalents at the end of the period $ 5,384       $ 2,027       $ 5,384 $ 2,027 $ 3,129
v3.25.0.1
Segment Information - Schedule of Segment Reporting Information, by Segments (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Segment Reporting Information [Line Items]                      
Interest income $ 60,110 $ 59,327 $ 57,910 $ 55,783 $ 54,762 $ 50,941 $ 47,161 $ 42,064 $ 233,130 $ 194,928 $ 121,371
Other revenues 8,005 7,064 7,425 6,757 7,094 8,430 7,374 8,410 29,251 31,308 29,428
Less: interest expense 26,962 28,320 27,370 26,272 25,222 22,345 19,414 15,359 108,924 82,340 22,949
Provision for credit losses 2,701 2,087 1,713 2,326 2,573 1,817 2,231 1,561 8,827 8,182 (3,868)
Compensation expense                 63,105 61,059 57,742
Income tax expense 885 2,351 1,917 1,752 2,703 2,079 2,522 2,808 6,905 10,112 11,386
Net income 14,415 10,526 10,456 8,848 9,770 9,941 8,337 8,979 44,245 37,027 40,858
Other segment disclosures:                      
Interest income 60,110 59,327 57,910 55,783 54,762 50,941 47,161 42,064 233,130 194,928 121,371
Interest expense 26,962 28,320 27,370 26,272 25,222 22,345 19,414 15,359 108,924 82,340 22,949
Depreciation, amortization, and accretion                 3,738 3,636 4,066
Provision for credit losses 2,701 $ 2,087 $ 1,713 $ 2,326 2,573 $ 1,817 $ 2,231 $ 1,561 8,827 8,182 (3,868)
Assets 3,853,215       3,507,846       3,853,215 3,507,846 2,976,611
Other assets 0       0       0 0 0
Operating Segment                      
Segment Reporting Information [Line Items]                      
Interest income                 233,130 194,928 121,371
Other revenues                 29,251 31,308 29,428
Total consolidated revenues                 262,381 226,236 150,799
Less: interest expense                 108,924 82,340 22,949
Segment net interest and non-interest income                 153,457 143,896 127,850
Provision for credit losses                 8,827 8,182 (3,868)
Compensation expense                 63,105 61,059 57,742
Other segment items                 30,375 27,516 21,732
Income tax expense                 6,905 10,112 11,386
Net income                 44,245 37,027 40,858
Other segment disclosures:                      
Interest income                 233,130 194,928 121,371
Interest expense                 108,924 82,340 22,949
Depreciation, amortization, and accretion                 3,738 3,636 4,066
Provision for credit losses                 8,827 8,182 (3,868)
Assets $ 3,853,215       $ 3,507,846       3,853,215 3,507,846 2,976,611
Expenses for segment assets                 $ 93,480 $ 88,575 $ 79,474
v3.25.0.1
Condensed Quarterly Earnings (unaudited) - Schedule of Quarterly Financial Information (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Quarterly Financial Information Disclosure [Abstract]                      
Interest income $ 60,110 $ 59,327 $ 57,910 $ 55,783 $ 54,762 $ 50,941 $ 47,161 $ 42,064 $ 233,130 $ 194,928 $ 121,371
Interest expense 26,962 28,320 27,370 26,272 25,222 22,345 19,414 15,359 108,924 82,340 22,949
Net interest expense 33,148 31,007 30,540 29,511 29,540 28,596 27,747 26,705 124,206 112,588 98,422
Provision for credit losses 2,701 2,087 1,713 2,326 2,573 1,817 2,231 1,561 8,827 8,182 (3,868)
Non-interest income 8,005 7,064 7,425 6,757 7,094 8,430 7,374 8,410 29,251 31,308 29,428
Non-interest expense 23,152 23,107 23,879 23,342 21,588 23,189 22,031 21,767 93,480 88,575 79,474
Income before income tax expense 15,300 12,877 12,373 10,600 12,473 12,020 10,859 11,787 51,150 47,139 52,244
Income tax expense 885 2,351 1,917 1,752 2,703 2,079 2,522 2,808 6,905 10,112 11,386
Net income 14,415 10,526 10,456 8,848 9,770 9,941 8,337 8,979 44,245 37,027 40,858
Preferred stock dividend 219 218 219 219 219 218 219 219 875 875 683
Net income available to common shareholders $ 14,196 $ 10,308 $ 10,237 $ 8,629 $ 9,551 $ 9,723 $ 8,118 $ 8,760 $ 43,370 $ 36,152 $ 40,175
Basic earnings per common share $ 1.71 $ 1.24 $ 1.23 $ 1.04 $ 1.15 $ 1.17 $ 0.98 $ 1.05 $ 5.2 $ 4.33 $ 4.75
Diluted earnings per common share 1.71 1.24 1.23 1.04 1.15 1.17 0.98 1.05 5.2 4.33 4.75
Dividends declared $ 0.25 $ 0.25 $ 0.25 $ 0.25 $ 0.2275 $ 0.2275 $ 0.2275 $ 0.2275 $ 1 $ 0.91 $ 0.79