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LOANS AND ALLOWANCE FOR CREDIT LOSSES | 9 Months Ended
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Sep. 30, 2022
Credit Loss [Abstract] |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | LOANS AND ALLOWANCE FOR CREDIT LOSSES The following is a summary of total loans by regulatory call report code with sub-segmentation based on underlying collateral for certain loan types:
(In thousands) |  | September 30, 2022 |  | December 31, 2021
Construction |  | $ | 367,997 |  |  | $ | 324,282 |
Commercial multifamily |  | 612,890 |  |  | 515,817 |
Commercial real estate owner occupied |  | 632,001 |  |  | 606,477 |
Commercial real estate non-owner occupied |  | 2,285,770 |  |  | 2,156,929 |
Commercial and industrial |  | 1,395,172 |  |  | 1,284,429 |
Residential real estate |  | 2,128,039 |  |  | 1,489,248 |
Home equity |  | 234,027 |  |  | 252,366 |
Consumer other |  | 287,585 |  |  | 196,299 |
Total loans |  | $ | 7,943,481 |  |  | $ | 6,825,847 |
Allowance for credit losses |  | 96,013 |  |  | 106,094 |
Net loans |  | $ | 7,847,468 |  |  | $ | 6,719,753 |
As of September 30, 2022 and December 31, 2021, outstanding loans originated under the Small Business Administration ("SBA") Paycheck Protection Program ("PPP") totaled $10.3 million and $29.9 million, respectively. These loans are 100% guaranteed by the SBA and the full principal amount of the loan may qualify for forgiveness. These loans are included in commercial and industrial. During the three and nine months ended September 30, 2022, the Company reclassified $3.6 million of commercial real estate non-owner occupied loans to held for sale, reflecting its intent to sell these loans. During the three months ended September 30, 2021, there were no loans reclassified to held for sale. During the nine months ended September 30, 2021, the Company reclassified $11.7 million of commercial loans to held for sale, reflecting its intent to sell these loans. Held for sale loans are not contained in the balances within this note and are accounted for at the lower of carrying value or fair market value within loans held for sale on the Consolidated Balance Sheet. Risk characteristics relevant to each portfolio segment are as follows: Construction - Loans in this segment primarily include real estate development loans for which payment is derived from sale of the property or long term financing at completion. Credit risk is affected by cost overruns, time to sell at an adequate price, and market conditions. Commercial real estate multifamily, owner occupied and non-owner - Loans in these segments are primarily owner-occupied or income-producing properties throughout New England and Northeastern New York. The underlying cash flows generated by the properties are adversely impacted by a downturn in the economy, which in turn, will have an effect on the credit quality in this segment. Management monitors the cash flows of these loans. Commercial and industrial loans - Loans in this segment are made to businesses and are generally secured by assets of the business such as accounts receivable, inventory, marketable securities, other liquid collateral, equipment and other business assets. Repayment is expected from the cash flows of the business. Loans in this segment include asset based loans which generally have no scheduled repayment and which are closely monitored against formula based collateral advance ratios. A weakened economy, and resultant decreased consumer spending, will have an effect on the credit quality in this segment. Residential real estate - All loans in this segment are collateralized by residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment. Home equity and other consumer loans - Loans in this segment are primarily home equity lines of credit, automobile loans and other consumer loans. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment. Allowance for Credit Losses for Loans The Allowance for Credit Losses for Loans (“ACLL”) is comprised of the allowance for loan losses, and the allowance for unfunded commitments is accounted for as a separate liability in other liabilities on the balance sheet. The level of the ACLL represents management’s estimate of expected credit losses over the expected life of the loans at the balance sheet date. The Company uses a static pool migration analysis method, applying expected historical loss trend and observed economic metrics. The level of the ACLL is based on management’s ongoing review of all relevant information, from internal and external sources, relating to past and current events, utilizing a 7 quarter reasonable and supportable forecast period with a 1 year reversion period. The ACLL reserve is overlaid with qualitative factors based upon: •the existence and growth of concentrations of credit; •the volume and severity of past due financial assets, including nonaccrual assets; •the institutions lending and credit review as well as the experience and ability of relevant management and staff and; •the effect of other external factors such as regulatory, competition, regional market conditions, legal and technological environment and other events such as natural disasters; •the effect of other economic factors such as economic stimulus and customer forbearance programs. The allowance for unfunded commitments is maintained at a level by the Company to be sufficient to absorb expected lifetime losses related to unfunded credit facilities (including unfunded loan commitments and letters of credit) and is included in other liabilities on the consolidated balance sheet. The Company’s activity in the allowance for credit losses for loans for the three and nine months ended September 30, 2022 and September 30, 2021 was as follows:
(In thousands) |  | Balance at Beginning of Period |  |  |  |  |  | Charge-offs |  | Recoveries |  | Provision for Credit Losses |  | Balance at End of Period
Three months ended September 30, 2022
Construction |  | $ | 1,710 |  |  |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | (479) |  |  | $ | 1,231 |
Commercial multifamily |  | 4,621 |  |  |  |  |  |  | (94) |  |  | 112 |  |  | (2,919) |  |  | 1,720 |
Commercial real estate owner occupied |  | 10,687 |  |  |  |  |  |  | (176) |  |  | 256 |  |  | (582) |  |  | 10,185 |
Commercial real estate non-owner occupied |  | 26,166 |  |  |  |  |  |  | (1,012) |  |  | 153 |  |  | 4,114 |  |  | 29,421 |
Commercial and industrial |  | 22,914 |  |  |  |  |  |  | (5,545) |  |  | 616 |  |  | 650 |  |  | 18,635 |
Residential real estate |  | 16,411 |  |  |  |  |  |  | (102) |  |  | 131 |  |  | 3,398 |  |  | 19,838 |
Home equity |  | 2,828 |  |  |  |  |  |  | (9) |  |  | 9 |  |  | (407) |  |  | 2,421 |
Consumer other |  | 13,684 |  |  |  |  |  |  | (486) |  |  | 140 |  |  | (776) |  |  | 12,562 |
Total allowance for credit losses |  | $ | 99,021 |  |  |  |  |  |  | $ | (7,424) |  |  | $ | 1,417 |  |  | $ | 2,999 |  |  | $ | 96,013 |
(In thousands) |  | Balance at Beginning of Period |  |  |  |  |  | Charge-offs |  | Recoveries |  | Provision for Credit Losses |  | Balance at End of Period
Three months ended September 30, 2021
Construction |  | $ | 3,919 |  |  |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | 714 |  |  | $ | 4,633 |
Commercial multifamily |  | 7,197 |  |  |  |  |  |  | — |  |  | — |  |  | (46) |  |  | 7,151 |
Commercial real estate owner occupied |  | 13,242 |  |  |  |  |  |  | (84) |  |  | 32 |  |  | (342) |  |  | 12,848 |
Commercial real estate non-owner occupied |  | 30,315 |  |  |  |  |  |  | (1,676) |  |  | 267 |  |  | 2,870 |  |  | 31,776 |
Commercial and industrial |  | 28,225 |  |  |  |  |  |  | (1,279) |  |  | 1,373 |  |  | (2,385) |  |  | 25,934 |
Residential real estate |  | 23,643 |  |  |  |  |  |  | (903) |  |  | 312 |  |  | (107) |  |  | 22,945 |
Home equity |  | 5,432 |  |  |  |  |  |  | (12) |  |  | 80 |  |  | (845) |  |  | 4,655 |
Consumer other |  | 7,071 |  |  |  |  |  |  | (380) |  |  | 137 |  |  | (3,854) |  |  | 2,974 |
Total allowance for credit losses |  | $ | 119,044 |  |  |  |  |  |  | $ | (4,334) |  |  | $ | 2,201 |  |  | $ | (3,995) |  |  | $ | 112,916 |
(In thousands) |  | Balance at Beginning of Period |  |  |  |  |  | Charge-offs |  | Recoveries |  | Provision for Credit Losses |  | Balance at End of Period
Nine months ended September 30, 2022
Construction |  | $ | 3,206 |  |  |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | (1,975) |  |  | $ | 1,231 |
Commercial multifamily |  | 6,120 |  |  |  |  |  |  | (94) |  |  | 112 |  |  | (4,418) |  |  | 1,720 |
Commercial real estate owner occupied |  | 12,752 |  |  |  |  |  |  | (603) |  |  | 562 |  |  | (2,526) |  |  | 10,185 |
Commercial real estate non-owner occupied |  | 32,106 |  |  |  |  |  |  | (5,895) |  |  | 1,464 |  |  | 1,746 |  |  | 29,421 |
Commercial and industrial |  | 22,584 |  |  |  |  |  |  | (6,951) |  |  | 2,485 |  |  | 517 |  |  | 18,635 |
Residential real estate |  | 22,406 |  |  |  |  |  |  | (480) |  |  | 719 |  |  | (2,807) |  |  | 19,838 |
Home equity |  | 4,006 |  |  |  |  |  |  | (9) |  |  | 255 |  |  | (1,831) |  |  | 2,421 |
Consumer other |  | 2,914 |  |  |  |  |  |  | (1,031) |  |  | 375 |  |  | 10,304 |  |  | 12,562 |
Total allowance for credit losses |  | $ | 106,094 |  |  |  |  |  |  | $ | (15,063) |  |  | $ | 5,972 |  |  | $ | (990) |  |  | $ | 96,013 |
(In thousands) |  | Balance at Beginning of Period |  |  |  |  |  | Charge-offs |  | Recoveries |  | Provision for Credit Losses |  | Balance at End of Period
Nine months ended September 30, 2021
Construction |  | $ | 5,111 |  |  |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | (478) |  |  | $ | 4,633 |
Commercial multifamily |  | 5,916 |  |  |  |  |  |  | (239) |  |  | 157 |  |  | 1,317 |  |  | 7,151 |
Commercial real estate owner occupied |  | 12,380 |  |  |  |  |  |  | (686) |  |  | 83 |  |  | 1,071 |  |  | 12,848 |
Commercial real estate non-owner occupied |  | 35,850 |  |  |  |  |  |  | (10,896) |  |  | 571 |  |  | 6,251 |  |  | 31,776 |
Commercial and industrial |  | 25,013 |  |  |  |  |  |  | (8,184) |  |  | 3,284 |  |  | 5,821 |  |  | 25,934 |
Residential real estate |  | 28,491 |  |  |  |  |  |  | (1,501) |  |  | 1,417 |  |  | (5,462) |  |  | 22,945 |
Home equity |  | 6,482 |  |  |  |  |  |  | (253) |  |  | 119 |  |  | (1,693) |  |  | 4,655 |
Consumer other |  | 8,059 |  |  |  |  |  |  | (1,283) |  |  | 546 |  |  | (4,348) |  |  | 2,974 |
Total allowance for credit losses |  | $ | 127,302 |  |  |  |  |  |  | $ | (23,042) |  |  | $ | 6,177 |  |  | $ | 2,479 |  |  | $ | 112,916 |
The Company’s allowance for credit losses on unfunded commitments is recognized as a liability (other liabilities on the consolidated balance sheet), with adjustments to the reserve recognized in other noninterest expense in the consolidated statement of income. The Company’s activity in the allowance for credit losses on unfunded commitments for the three and nine months ended September 30, 2022 and 2021 was as follows:
|  | Three Months Ended September 30,
(In thousands) |  | 2022 |  | 2021 |
Balance at beginning of period |  | $ | 7,043 |  |  | $ | 7,829 |  |
Expense for credit losses |  | 700 |  |  | — |  |
Balance at end of period |  | $ | 7,743 |  |  | $ | 7,829 |  |
|  | Nine Months Ended September 30,
(In thousands) |  | 2022 |  | 2021 |
Balance at beginning of period |  | $ | 7,043 |  |  | $ | 7,629 |  |
Expense for credit losses |  | 700 |  |  | 200 |  |
Balance at end of period |  | $ | 7,743 |  |  | $ | 7,829 |  |
Credit Quality Information The Company monitors the credit quality of its portfolio by using internal risk ratings that are based on regulatory guidance. Loans that are given a Pass rating are not considered a problem credit. Loans that are classified as Special Mention loans are considered to have potential weaknesses and are evaluated closely by management. Substandard, including non-accruing loans, are loans for which a definitive weakness has been identified and which may make full collection of contractual cash flows questionable. Doubtful loans are those with identified weaknesses that make full collection of contractual cash flows, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. For commercial credits, the Company assigns an internal risk rating at origination and reviews the rating annual, semiannually, or quarterly depending on the risk rating. The rating is also reassessed at any point in time when management becomes aware of information that may affect the borrower’s ability to fulfill their obligations. The Company risk rates its residential mortgages, including 1-4 family and residential construction loans, based on a three rating system: Pass, Special Mention, and Substandard. Loans that are current within 59 days are rated Pass. Residential mortgages that are 60-89 days delinquent are rated Special Mention. Loans delinquent for 90 days or greater are rated Substandard and generally placed on non-accrual status. The following table presents the Company’s loans by risk category:
| Term Loans Amortized Cost Basis by Origination Year |  |  |
(In thousands) | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Revolving Loans Amortized Cost Basis | Revolving Loans Converted to Term | Total
As of September 30, 2022
Construction |  |  |  |  |  |  |  |  |
Risk rating |  |  |  |  |  |  |  |  |
Pass | $ | 117,627 |  | $ | 129,188 |  | $ | 31,541 |  | $ | 65,388 |  | $ | 2,331 |  | $ | 2,103 |  | $ | — |  | $ | — |  | $ | 348,178 |
Special Mention | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Substandard | — |  | — |  | — |  | — |  | 19,819 |  | — |  | — |  | — |  | 19,819 |
Total | $ | 117,627 |  | $ | 129,188 |  | $ | 31,541 |  | $ | 65,388 |  | $ | 22,150 |  | $ | 2,103 |  | $ | — |  | $ | — |  | $ | 367,997 |
Commercial multifamily:
Risk rating |  |  |  |  |  |  |  |  |
Pass | $ | 194,494 |  | $ | 61,247 |  | $ | 27,732 |  | $ | 94,937 |  | $ | 68,290 |  | $ | 157,611 |  | $ | 400 |  | $ | — |  | $ | 604,711 |
Special Mention | — |  | — |  | 2,646 |  | — |  | 5,533 |  | — |  | — |  | — |  | 8,179 |
Substandard | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total | $ | 194,494 |  | $ | 61,247 |  | $ | 30,378 |  | $ | 94,937 |  | $ | 73,823 |  | $ | 157,611 |  | $ | 400 |  | $ | — |  | $ | 612,890 |
Commercial real estate owner occupied:
Risk rating |  |  |  |  |  |  |  |  |
Pass | $ | 101,409 |  | $ | 133,212 |  | $ | 60,422 |  | $ | 84,434 |  | $ | 76,062 |  | $ | 164,207 |  | $ | 3,169 |  | $ | — |  | $ | 622,915 |
Special Mention | — |  | — |  | — |  | — |  | — |  | 114 |  | — |  | — |  | 114 |
Substandard | 1,033 |  | 122 |  | 31 |  | 366 |  | 1,311 |  | 6,109 |  | — |  | — |  | 8,972 |
Total | $ | 102,442 |  | $ | 133,334 |  | $ | 60,453 |  | $ | 84,800 |  | $ | 77,373 |  | $ | 170,430 |  | $ | 3,169 |  | $ | — |  | $ | 632,001 |
Commercial real estate non-owner occupied:
Risk rating |  |  |  |  |  |  |  |  |
Pass | $ | 421,349 |  | $ | 445,515 |  | $ | 168,958 |  | $ | 291,942 |  | $ | 296,356 |  | $ | 568,691 |  | $ | 18,051 |  | $ | — |  | $ | 2,210,862 |
Special Mention | — |  | — |  | — |  | 13,686 |  | — |  | 31,073 |  | — |  | — |  | 44,759 |
Substandard | — |  | — |  | 7,333 |  | — |  | 16,081 |  | 6,735 |  | — |  | — |  | 30,149 |
Total | $ | 421,349 |  | $ | 445,515 |  | $ | 176,291 |  | $ | 305,628 |  | $ | 312,437 |  | $ | 606,499 |  | $ | 18,051 |  | $ | — |  | $ | 2,285,770 |
Commercial and industrial:
Risk rating |  |  |  |  |  |  |  |  |
Pass | $ | 175,428 |  | $ | 159,122 |  | $ | 81,452 |  | $ | 75,464 |  | $ | 95,370 |  | $ | 109,382 |  | $ | 635,314 |  | $ | — |  | $ | 1,331,532 |
Special Mention | — |  | — |  | — |  | 667 |  | 12,558 |  | — |  | — |  | — |  | 13,225 |
Substandard | 91 |  | 559 |  | 4,215 |  | 9,044 |  | 1,420 |  | 3,297 |  | 31,711 |  | — |  | 50,337 |
Doubtful | — |  | — |  | — |  | — |  | — |  | — |  | 78 |  | — |  | 78 |
Total | $ | 175,519 |  | $ | 159,681 |  | $ | 85,667 |  | $ | 85,175 |  | $ | 109,348 |  | $ | 112,679 |  | $ | 667,103 |  | $ | — |  | $ | 1,395,172 |
Residential real estate
Risk rating |  |  |  |  |  |  |  |  |
Pass | $ | 770,095 |  | $ | 281,469 |  | $ | 100,116 |  | $ | 73,592 |  | $ | 147,992 |  | $ | 736,711 |  | $ | 286 |  | $ | — |  | $ | 2,110,261 |
Special Mention | — |  | — |  | 158 |  | — |  | — |  | 1,942 |  | — |  | — |  | 2,100 |
Substandard | — |  | 3,254 |  | — |  | 274 |  | 2,086 |  | 10,064 |  | — |  | — |  | 15,678 |
Total | $ | 770,095 |  | $ | 284,723 |  | $ | 100,274 |  | $ | 73,866 |  | $ | 150,078 |  | $ | 748,717 |  | $ | 286 |  | $ | — |  | $ | 2,128,039 |
| Term Loans Amortized Cost Basis by Origination Year |  |  |
(In thousands) | 2021 | 2020 | 2019 | 2018 | 2017 | Prior | Revolving Loans Amortized Cost Basis | Revolving Loans Converted to Term | Total
As of December 31, 2021
Construction |  |  |  |  |  |  |  |  |
Risk rating |  |  |  |  |  |  |  |  |
Pass | $ | 71,784 |  | $ | 52,725 |  | $ | 117,784 |  | $ | 66,950 |  | $ | 3,839 |  | $ | 1,721 |  | $ | 50 |  | $ | — |  | $ | 314,853 |
Special Mention | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Substandard | — |  | — |  | — |  | 9,429 |  | — |  | — |  | — |  | — |  | 9,429 |
Total | $ | 71,784 |  | $ | 52,725 |  | $ | 117,784 |  | $ | 76,379 |  | $ | 3,839 |  | $ | 1,721 |  | $ | 50 |  | $ | — |  | $ | 324,282 |
Commercial multifamily:
Risk rating |  |  |  |  |  |  |  |  |
Pass | $ | 63,630 |  | $ | 28,172 |  | $ | 98,455 |  | $ | 59,720 |  | $ | 76,699 |  | $ | 176,020 |  | $ | 457 |  | $ | — |  | $ | 503,153 |
Special Mention | — |  | 2,700 |  | — |  | 5,598 |  | — |  | — |  | — |  | — |  | 8,298 |
Substandard | — |  | — |  | — |  | — |  | — |  | 4,230 |  | 136 |  | — |  | 4,366 |
Total | $ | 63,630 |  | $ | 30,872 |  | $ | 98,455 |  | $ | 65,318 |  | $ | 76,699 |  | $ | 180,250 |  | $ | 593 |  | $ | — |  | $ | 515,817 |
Commercial real estate owner occupied:
Risk rating |  |  |  |  |  |  |  |  |
Pass | $ | 154,434 |  | $ | 50,236 |  | $ | 85,687 |  | $ | 91,316 |  | $ | 45,995 |  | $ | 157,346 |  | $ | 3,206 |  | $ | — |  | $ | 588,220 |
Special Mention | — |  | 525 |  | 869 |  | 1,668 |  | 1,405 |  | 1,157 |  | — |  | — |  | 5,624 |
Substandard | — |  | — |  | 2,113 |  | 1,593 |  | 838 |  | 8,089 |  | — |  | — |  | 12,633 |
Total | $ | 154,434 |  | $ | 50,761 |  | $ | 88,669 |  | $ | 94,577 |  | $ | 48,238 |  | $ | 166,592 |  | $ | 3,206 |  | $ | — |  | $ | 606,477 |
Commercial real estate non-owner occupied:
Risk rating |  |  |  |  |  |  |  |  |
Pass | $ | 426,086 |  | $ | 176,172 |  | $ | 296,985 |  | $ | 349,947 |  | $ | 204,043 |  | $ | 585,044 |  | $ | 19,511 |  | $ | — |  | $ | 2,057,788 |
Special Mention | — |  | 221 |  | 3,472 |  | 7,632 |  | 2,302 |  | 27,268 |  | — |  | — |  | 40,895 |
Substandard | — |  | 7,588 |  | — |  | 2,784 |  | 33,472 |  | 14,303 |  | 99 |  | — |  | 58,246 |
Total | $ | 426,086 |  | $ | 183,981 |  | $ | 300,457 |  | $ | 360,363 |  | $ | 239,817 |  | $ | 626,615 |  | $ | 19,610 |  | $ | — |  | $ | 2,156,929 |
Commercial and industrial:
Risk rating |  |  |  |  |  |  |  |  |
Pass | $ | 187,257 |  | $ | 130,520 |  | $ | 114,153 |  | $ | 156,443 |  | $ | 54,190 |  | $ | 136,837 |  | $ | 424,393 |  | $ | — |  | $ | 1,203,793 |
Special Mention | 661 |  | 1,691 |  | 10,824 |  | 5,092 |  | 1,433 |  | 488 |  | 22,468 |  | — |  | 42,657 |
Substandard | 211 |  | 2,494 |  | 9,609 |  | 3,145 |  | 2,020 |  | 2,330 |  | 17,935 |  | — |  | 37,744 |
Doubtful | — |  | — |  | — |  | — |  | — |  | 15 |  | 220 |  | — |  | 235 |
Total | $ | 188,129 |  | $ | 134,705 |  | $ | 134,586 |  | $ | 164,680 |  | $ | 57,643 |  | $ | 139,670 |  | $ | 465,016 |  | $ | — |  | $ | 1,284,429 |
Residential real estate
Risk rating |  |  |  |  |  |  |  |  |
Pass | $ | 214,306 |  | $ | 114,536 |  | $ | 86,997 |  | $ | 169,537 |  | $ | 189,980 |  | $ | 697,401 |  | $ | 293 |  | $ | — |  | $ | 1,473,050 |
Special Mention | — |  | — |  | — |  | 120 |  | 502 |  | 1,557 |  | — |  | — |  | 2,179 |
Substandard | 1,239 |  | — |  | 142 |  | 1,849 |  | 2,161 |  | 8,628 |  | — |  | — |  | 14,019 |
Total | $ | 215,545 |  | $ | 114,536 |  | $ | 87,139 |  | $ | 171,506 |  | $ | 192,643 |  | $ | 707,586 |  | $ | 293 |  | $ | — |  | $ | 1,489,248 |
For home equity and consumer other loan portfolio segments, Berkshire evaluates credit quality based on the aging status of the loan and by payment activity. The performing or nonperforming status is updated on an ongoing basis dependent upon improvement and deterioration in credit quality. The following table presents the amortized cost based on payment activity:
| Term Loans Amortized Cost Basis by Origination Year |  |  |
(In thousands) | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Revolving Loans Amortized Cost Basis | Revolving Loans Converted to Term | Total
As of September 30, 2022
Home equity: |  |  |  |  |  |  |  |  |
Payment performance |  |  |  |  |  |  |  |  |
Performing | $ | — |  | $ | 117 |  | $ | 457 |  | $ | — |  | $ | — |  | $ | 19 |  | $ | 231,218 |  | $ | — |  | $ | 231,811 |
Nonperforming | — |  | — |  | — |  | — |  | — |  | — |  | 2,216 |  | — |  | 2,216 |
Total | $ | — |  | $ | 117 |  | $ | 457 |  | $ | — |  | $ | — |  | $ | 19 |  | $ | 233,434 |  | $ | — |  | $ | 234,027 |
Consumer other: |  |  |  |  |  |  |  |  |
Payment performance |  |  |  |  |  |  |  |  |
Performing | $ | 159,609 |  | $ | 30,603 |  | $ | 8,901 |  | $ | 14,548 |  | $ | 33,215 |  | $ | 30,817 |  | $ | 8,035 |  | $ | — |  | $ | 285,728 |
Nonperforming | 279 |  | 165 |  | 20 |  | 271 |  | 562 |  | 553 |  | 7 |  | — |  | 1,857 |
Total | $ | 159,888 |  | $ | 30,768 |  | $ | 8,921 |  | $ | 14,819 |  | $ | 33,777 |  | $ | 31,370 |  | $ | 8,042 |  | $ | — |  | $ | 287,585 |
| Term Loans Amortized Cost Basis by Origination Year |  |  |
(In thousands) | 2021 | 2020 | 2019 | 2018 | 2017 | Prior | Revolving Loans Amortized Cost Basis | Revolving Loans Converted to Term | Total
As of December 31, 2021
Home equity: |  |  |  |  |  |  |  |  |
Payment performance |  |  |  |  |  |  |  |  |
Performing | $ | 125 |  | $ | 469 |  | $ | — |  | $ | — |  | $ | — |  | $ | 24 |  | $ | 249,590 |  | $ | — |  | $ | 250,208 |
Nonperforming | — |  | — |  | — |  | — |  | — |  | — |  | 2,158 |  | — |  | 2,158 |
Total | $ | 125 |  | $ | 469 |  | $ | — |  | $ | — |  | $ | — |  | $ | 24 |  | $ | 251,748 |  | $ | — |  | $ | 252,366 |
Consumer other: |  |  |  |  |  |  |  |  |
Payment performance |  |  |  |  |  |  |  |  |
Performing | $ | 37,994 |  | $ | 11,189 |  | $ | 21,548 |  | $ | 55,577 |  | $ | 30,632 |  | $ | 28,797 |  | $ | 7,505 |  | $ | — |  | $ | 193,242 |
Nonperforming | 8 |  | 46 |  | 290 |  | 797 |  | 746 |  | 1,139 |  | 31 |  | — |  | 3,057 |
Total | $ | 38,002 |  | $ | 11,235 |  | $ | 21,838 |  | $ | 56,374 |  | $ | 31,378 |  | $ | 29,936 |  | $ | 7,536 |  | $ | — |  | $ | 196,299 |
The following is a summary of loans by past due status at September 30, 2022 and December 31, 2021:
(In thousands) |  | 30-59 Days Past Due |  | 60-89 Days Past Due |  | 90 Days or Greater Past Due |  | Total Past Due |  | Current |  | Total Loans
September 30, 2022
Construction |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 367,997 |  |  | $ | 367,997 |
Commercial multifamily |  | — |  |  | — |  |  | — |  |  | — |  |  | 612,890 |  |  | 612,890 |
Commercial real estate owner occupied |  | 391 |  |  | 114 |  |  | 3,831 |  |  | 4,336 |  |  | 627,665 |  |  | 632,001 |
Commercial real estate non-owner occupied |  | 368 |  |  | 3 |  |  | 206 |  |  | 577 |  |  | 2,285,193 |  |  | 2,285,770 |
Commercial and industrial |  | 2,844 |  |  | 1,192 |  |  | 22,986 |  |  | 27,022 |  |  | 1,368,150 |  |  | 1,395,172 |
Residential real estate |  | 4,566 |  |  | 2,281 |  |  | 13,038 |  |  | 19,885 |  |  | 2,108,154 |  |  | 2,128,039 |
Home equity |  | 170 |  |  | 206 |  |  | 2,216 |  |  | 2,592 |  |  | 231,435 |  |  | 234,027 |
Consumer other |  | 1,720 |  |  | 809 |  |  | 1,862 |  |  | 4,391 |  |  | 283,194 |  |  | 287,585 |
Total |  | $ | 10,059 |  |  | $ | 4,605 |  |  | $ | 44,139 |  |  | $ | 58,803 |  |  | $ | 7,884,678 |  |  | $ | 7,943,481 |
(In thousands) |  | 30-59 Days Past Due |  | 60-89 Days Past Due |  | 90 Days or Greater Past Due |  | Total Past Due |  | Current |  | Total Loans
December 31, 2021
Construction |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 324,282 |  |  | $ | 324,282 |
Commercial multifamily |  | 82 |  |  | 306 |  |  | 187 |  |  | 575 |  |  | 515,242 |  |  | 515,817 |
Commercial real estate owner occupied |  | — |  |  | 400 |  |  | 4,221 |  |  | 4,621 |  |  | 601,856 |  |  | 606,477 |
Commercial real estate non-owner occupied |  | 25,420 |  |  | 653 |  |  | 9,049 |  |  | 35,122 |  |  | 2,121,807 |  |  | 2,156,929 |
Commercial and industrial |  | 2,700 |  |  | 709 |  |  | 6,836 |  |  | 10,245 |  |  | 1,274,184 |  |  | 1,284,429 |
Residential real estate |  | 5,529 |  |  | 2,015 |  |  | 13,264 |  |  | 20,808 |  |  | 1,468,440 |  |  | 1,489,248 |
Home equity |  | 258 |  |  | 108 |  |  | 2,158 |  |  | 2,524 |  |  | 249,842 |  |  | 252,366 |
Consumer other |  | 1,363 |  |  | 320 |  |  | 2,882 |  |  | 4,565 |  |  | 191,734 |  |  | 196,299 |
Total |  | $ | 35,352 |  |  | $ | 4,511 |  |  | $ | 38,597 |  |  | $ | 78,460 |  |  | $ | 6,747,387 |  |  | $ | 6,825,847 |
The following is a summary of loans on nonaccrual status and loans past due 90 days or more and still accruing as of September 30, 2022 and December 31, 2021:
(In thousands) |  |  |  | Nonaccrual Amortized Cost |  |  |  | Nonaccrual With No Related Allowance |  | Past Due 90 Days or Greater and Accruing |  | Interest Income Recognized on Nonaccrual
At or for the three months ended September 30, 2022 |  |  |  |  |  |  |  |  |  |  |  |
Construction |  |  |  | $ | — |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Commercial multifamily |  |  |  | — |  |  |  |  | — |  |  | — |  |  | — |
Commercial real estate owner occupied |  |  |  | 2,722 |  |  |  |  | 1,987 |  |  | 1,109 |  |  | — |
Commercial real estate non-owner occupied |  |  |  | 206 |  |  |  |  | 80 |  |  | — |  |  | — |
Commercial and industrial |  |  |  | 20,977 |  |  |  |  | 18,292 |  |  | 2,009 |  |  | — |
Residential real estate |  |  |  | 10,703 |  |  |  |  | 6,355 |  |  | 2,335 |  |  | — |
Home equity |  |  |  | 1,725 |  |  |  |  | 518 |  |  | 491 |  |  | — |
Consumer other |  |  |  | 1,520 |  |  |  |  | 2 |  |  | 342 |  |  | — |
Total |  |  |  | $ | 37,853 |  |  |  |  | $ | 27,234 |  |  | $ | 6,286 |  |  | $ | — |
The commercial and industrial loans nonaccrual amortized cost as of September 30, 2022 included medallion loans with a fair value of $0.8 million and a contractual balance of $13.4 million.
(In thousands) |  |  |  | Nonaccrual Amortized Cost |  |  |  | Nonaccrual With No Related Allowance |  | Past Due 90 Days or Greater and Accruing |  | Interest Income Recognized on Nonaccrual
At or for the three months ended December 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |
Construction |  |  |  | $ | — |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Commercial multifamily |  |  |  | 187 |  |  |  |  | 187 |  |  | — |  |  | — |
Commercial real estate owner occupied |  |  |  | 4,221 |  |  |  |  | 2,413 |  |  | — |  |  | — |
Commercial real estate non-owner occupied |  |  |  | 8,877 |  |  |  |  | 8,412 |  |  | 172 |  |  | — |
Commercial and industrial |  |  |  | 6,747 |  |  |  |  | 1,506 |  |  | 89 |  |  | — |
Residential real estate |  |  |  | 10,698 |  |  |  |  | 6,511 |  |  | 2,566 |  |  | — |
Home equity |  |  |  | 1,901 |  |  |  |  | 141 |  |  | 257 |  |  | — |
Consumer other |  |  |  | 2,695 |  |  |  |  | 4 |  |  | 187 |  |  | — |
Total |  |  |  | $ | 35,326 |  |  |  |  | $ | 19,174 |  |  | $ | 3,271 |  |  | $ | — |
The commercial and industrial loans nonaccrual amortized cost as of December 31, 2021 included medallion loans with a fair value of $1.2 million and a contractual balance of $31.4 million. The following table summarizes information about total loans rated Special Mention or lower at September 30, 2022 and December 31, 2021. The table below includes consumer loans that are Special Mention and Substandard accruing that are classified as performing based on payment activity.
(In thousands) |  | September 30, 2022 |  | December 31, 2021 |  |
Non-Accrual |  | $ | 37,853 |  |  | $ | 35,326 |  |  |
Substandard Accruing |  | 88,649 |  |  | 106,560 |  |  |
Total Classified |  | 126,502 |  |  | 141,886 |  |  |
Special Mention |  | 69,530 |  |  | 100,071 |  |  |
Total Criticized |  | $ | 196,032 |  |  | $ | 241,957 |  |  |
A financial asset is considered collateral-dependent when the debtor is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. Expected credit losses for collateral-dependent loans are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. Significant quarter over quarter changes are reflective of changes in nonaccrual status and not necessarily associated with credit quality indicators like appraisal value. The following table presents the amortized cost basis of individually analyzed collateral-dependent loans by loan portfolio segment:
|  | Type of Collateral
(In thousands) |  | Real Estate |  |  |  | Investment Securities/Cash |  |  |  | Other
September 30, 2022 |  |  |  |  |  |  |  |  |  |
Construction |  | $ | — |  |  |  |  | $ | — |  |  |  |  | $ | — |
Commercial multifamily |  |  |  |  |  | — |  |  |  |  | — |
Commercial real estate owner occupied |  | 3,380 |  |  |  |  | — |  |  |  |  | — |
Commercial real estate non-owner occupied |  | 394 |  |  |  |  | — |  |  |  |  | — |
Commercial and industrial |  | 461 |  |  |  |  | — |  |  |  |  | 19,113 |
Residential real estate |  | 5,537 |  |  |  |  | — |  |  |  |  | — |
Home equity |  | 638 |  |  |  |  | — |  |  |  |  | — |
Consumer other |  | 4 |  |  |  |  | — |  |  |  |  | — |
Total loans |  | $ | 10,414 |  |  |  |  | $ | — |  |  |  |  | $ | 19,113 |
December 31, 2021 |  |  |  |  |  |  |  |  |  |
Construction |  | $ | 9,429 |  |  |  |  | $ | — |  |  |  |  | $ | — |
Commercial multifamily |  | 188 |  |  |  |  | — |  |  |  |  | — |
Commercial real estate owner occupied |  | 4,466 |  |  |  |  | — |  |  |  |  | — |
Commercial real estate non-owner occupied |  | 9,501 |  |  |  |  | — |  |  |  |  | — |
Commercial and industrial |  | 526 |  |  |  |  | — |  |  |  |  | 1,040 |
Residential real estate |  | 7,035 |  |  |  |  | — |  |  |  |  | — |
Home equity |  | 262 |  |  |  |  | — |  |  |  |  | — |
Consumer other |  | 2 |  |  |  |  | — |  |  |  |  | — |
Total loans |  | $ | 31,409 |  |  |  |  | $ | — |  |  |  |  | $ | 1,040 |
Troubled Debt Restructuring Loans The Company’s loan portfolio also includes certain loans that have been modified in a Troubled Debt Restructuring ("TDR"), where economic concessions have been granted to borrowers who have experienced or are expected to experience financial difficulties. These concessions typically result from the Company’s loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance, or other actions. Certain TDRs are classified as nonperforming at the time of restructure and may only be returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period, generally six months. TDRs are evaluated individually for impairment and may result in a specific allowance amount allocated to an individual loan. The following table presents activity in TDRs for the three and nine months ended September 30, 2022 and September 30, 2021:
(In thousands) |  | Balance at Beginning of Period |  | Principal Payments |  | TDR Status Change |  | Other Additions/(Reductions) |  | Newly Identified TDRs |  | Balance at End of Period
Three months ended September 30, 2022
Construction |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Commercial multifamily |  | 677 |  |  | (7) |  |  | — |  |  | (175) |  |  | — |  |  | 495 |
Commercial real estate owner occupied |  | 2,701 |  |  | (28) |  |  | — |  |  | (16) |  |  | — |  |  | 2,657 |
Commercial real estate non-owner occupied |  | 986 |  |  | (13) |  |  | — |  |  | — |  |  | — |  |  | 973 |
Commercial and industrial |  | 4,651 |  |  | (426) |  |  | — |  |  | (15) |  |  | — |  |  | 4,210 |
Residential real estate |  | 1,019 |  |  | (17) |  |  | — |  |  | — |  |  | — |  |  | 1,002 |
Home equity |  | 162 |  |  | (62) |  |  | — |  |  | — |  |  | — |  |  | 100 |
Consumer other |  | 30 |  |  | (2) |  |  | — |  |  | — |  |  | 545 |  |  | 573 |
Total |  | $ | 10,226 |  |  | $ | (555) |  |  | $ | — |  |  | $ | (206) |  |  | $ | 545 |  |  | $ | 10,010 |
(In thousands) |  | Balance at Beginning of Period |  | Principal Payments |  | TDR Status Change |  | Other Additions/(Reductions) |  | Newly Identified TDRs |  | Balance at End of Period
Three months ended September 30, 2021
Construction |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Commercial multifamily |  | 728 |  |  | (11) |  |  | — |  |  | — |  |  | — |  |  | 717 |
Commercial real estate owner occupied |  | 2,962 |  |  | (33) |  |  | — |  |  | — |  |  | — |  |  | 2,929 |
Commercial real estate non-owner occupied |  | 24,488 |  |  | (67) |  |  | — |  |  | (10,967) |  |  | — |  |  | 13,454 |
Commercial and industrial |  | 6,810 |  |  | (387) |  |  | — |  |  | (3,105) |  |  | 283 |  |  | 3,601 |
Residential real estate |  | 1,305 |  |  | (160) |  |  | — |  |  | — |  |  | — |  |  | 1,145 |
Home equity |  | 127 |  |  | (3) |  |  | — |  |  | — |  |  | — |  |  | 124 |
Consumer other |  | 37 |  |  | (2) |  |  | — |  |  | (1) |  |  | — |  |  | 34 |
Total |  | $ | 36,457 |  |  | $ | (663) |  |  | $ | — |  |  | $ | (14,073) |  |  | $ | 283 |  |  | $ | 22,004 |
(In thousands) |  | Balance at Beginning of Period |  | Principal Payments |  | TDR Status Change |  | Other Additions/(Reductions) |  | Newly Identified TDRs |  | Balance at End of Period
Nine months ended September 30, 2022
Construction |  | $ | 9,429 |  |  | $ | — |  |  | $ | — |  |  | $ | (9,429) |  |  | $ | — |  |  | $ | — |
Commercial multifamily |  | 703 |  |  | (33) |  |  | — |  |  | (175) |  |  | — |  |  | 495 |
Commercial real estate owner occupied |  | 2,733 |  |  | (60) |  |  | — |  |  | (16) |  |  | — |  |  | 2,657 |
Commercial real estate non-owner occupied |  | 9,310 |  |  | (25) |  |  | — |  |  | (8,312) |  |  | — |  |  | 973 |
Commercial and industrial |  | 3,656 |  |  | (768) |  |  | — |  |  | (164) |  |  | 1,486 |  |  | 4,210 |
Residential real estate |  | 1,117 |  |  | (48) |  |  | — |  |  | (67) |  |  | — |  |  | 1,002 |
Home equity |  | 121 |  |  | (71) |  |  | — |  |  | — |  |  | 50 |  |  | 100 |
Consumer other |  | 33 |  |  | (5) |  |  | — |  |  | — |  |  | 545 |  |  | 573 |
Total |  | $ | 27,102 |  |  | $ | (1,010) |  |  | $ | — |  |  | $ | (18,163) |  |  | $ | 2,081 |  |  | $ | 10,010 |
(In thousands) |  | Balance at Beginning of Period |  | Principal Payments |  | TDR Status Change |  | Other Additions/(Reductions) |  | Newly Identified TDRs |  | Balance at End of Period
Nine months ended September 30, 2021
Construction |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Commercial multifamily |  | 754 |  |  | (37) |  |  | — |  |  | — |  |  | — |  |  | 717 |
Commercial real estate owner occupied |  | 1,731 |  |  | (68) |  |  | — |  |  | — |  |  | 1,266 |  |  | 2,929 |
Commercial real estate non-owner occupied |  | 13,684 |  |  | (163) |  |  | — |  |  | (11,046) |  |  | 10,979 |  |  | 13,454 |
Commercial and industrial |  | 2,686 |  |  | (815) |  |  | — |  |  | (3,141) |  |  | 4,871 |  |  | 3,601 |
Residential real estate |  | 1,524 |  |  | (205) |  |  | — |  |  | (174) |  |  | — |  |  | 1,145 |
Home equity |  | 133 |  |  | (9) |  |  | — |  |  | — |  |  | — |  |  | 124 |
Consumer other |  | 36 |  |  | (7) |  |  | — |  |  | 5 |  |  | — |  |  | 34 |
Total |  | $ | 20,548 |  |  | $ | (1,304) |  |  | $ | — |  |  | $ | (14,356) |  |  | $ | 17,116 |  |  | $ | 22,004 |
The following table presents loans modified as TDRs that occurred during the three and nine months ended September 30, 2022 and 2021:
(dollars in thousands) |  | Total
Three months ended September 30, 2022 |  |
TDR: |  |
Number of loans |  | 30 |
Pre-modification outstanding recorded investment |  | $ | 545 |
Post-modification outstanding recorded investment |  | $ | 545 |
Three months ended September 30, 2021 |  |
TDR: |  |
Number of loans |  | 2 |
Pre-modification outstanding recorded investment |  | $ | 283 |
Post-modification outstanding recorded investment |  | $ | 283 |
(dollars in thousands) |  | Total
Nine months ended September 30, 2022 |  |
TDR: |  |
Number of loans |  | 32 |
Pre-modification outstanding recorded investment |  | $ | 2,081 |
Post-modification outstanding recorded investment |  | $ | 2,081 |
Nine months ended September 30, 2021 |  |
TDR: |  |
Number of loans |  | 15 |
Pre-modification outstanding recorded investment |  | $ | 17,116 |
Post-modification outstanding recorded investment |  | $ | 17,116 |
There were no TDRs for which there was a payment default within twelve months following the modification during the three months ending September 30, 2022. The following table presents loans by portfolio segment modified as TDRs for which there was a payment default within twelve months following the modification during the nine months ended September 30, 2022:
(in thousands) | Number of Loans |  | Recorded Investment
Nine months ended September 30, 2022 |  |  |
Commercial and industrial | 1 |  | $ | 105 |
Total | 1 |  | $ | 105 |
There were no TDRs for which there was a payment default within twelve months following the modification during the three and nine months ended September 30, 2021. Between March 2020 and December 2021, the Company offered three-month payment deferrals for customers with a current payment status who were negatively impacted by economic disruption caused by the COVID-19 pandemic. Refer to Note 9 - Other Commitments, Contingencies, and Off-Balance Sheet Activities, and Pandemic Impact for more information regarding these modifications.

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