XML 23 R12.htm IDEA: XBRL DOCUMENT

LOANS AND ALLOWANCE FOR CREDIT LOSSES

9 Months Ended

Sep. 30, 2022

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.