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LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)
6 Months Ended
Jun. 30, 2023
Credit Loss [Abstract]  
Schedule of Loans
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)June 30, 2023December 31, 2022
Construction$443,856 $319,452 
Commercial multifamily597,472 620,088 
Commercial real estate owner occupied696,771 640,489 
Commercial real estate non-owner occupied2,557,036 2,496,237 
Commercial and industrial1,438,062 1,445,236 
Residential real estate2,677,053 2,312,447 
Home equity225,434 227,450 
Consumer other246,718 273,910 
Total loans$8,882,402 $8,335,309 
Allowance for credit losses100,219 96,270 
Net loans$8,782,183 $8,239,039 
Schedule of Allowance for Credit Losses for Loans, Activity
The Company’s activity in the allowance for credit losses for loans for the three and six months ended June 30, 2023 and June 30, 2022 was as follows:
(In thousands)Balance at Beginning of PeriodAdoption of ASU No. 2022-02Charge-offsRecoveriesProvision for Credit LossesBalance at End of Period
Three months ended June 30, 2023
Construction$1,536 $— $(1)$— $18 $1,553 
Commercial multifamily1,698 — — — 368 2,066 
Commercial real estate owner occupied10,278 — (394)596 (137)10,343 
Commercial real estate non-owner occupied33,408 — — 81 2,833 36,322 
Commercial and industrial20,164 — (4,595)815 2,357 18,741 
Residential real estate17,590 — (210)76 762 18,218 
Home equity2,320 — (7)132 127 2,572 
Consumer other10,997 — (2,478)213 1,672 10,404 
Total allowance for credit losses$97,991 $— $(7,685)$1,913 $8,000 $100,219 
(In thousands)Balance at Beginning of PeriodCharge-offsRecoveriesProvision for Credit LossesBalance at End of Period
Three months ended June 30, 2022
Construction$2,505 $— $— $(795)$1,710 
Commercial multifamily5,771 — — (1,150)4,621 
Commercial real estate owner occupied11,498 (298)97 (609)10,688 
Commercial real estate non-owner occupied25,814 — 46 305 26,165 
Commercial and industrial22,949 (752)584 133 22,914 
Residential real estate17,816 (216)199 (1,389)16,410 
Home equity3,303 — 112 (587)2,828 
9,819 (332)101 4,097 13,685 
Total allowance for credit losses$99,475 $(1,598)$1,139 $$99,021 
(In thousands)Balance at Beginning of PeriodAdoption of ASU No. 2022-02Charge-offsRecoveriesProvision for Credit LossesBalance at End of Period
Six months ended June 30, 2023
Construction$1,227 $— $(1)$— $327 $1,553 
Commercial multifamily1,810 — — 250 2,066 
Commercial real estate owner occupied10,739 24 (464)641 (597)10,343 
Commercial real estate non-owner occupied30,724 — — 175 5,423 36,322 
Commercial and industrial18,743 (23)(10,627)1,119 9,529 18,741 
Residential real estate18,666 (240)463 (673)18,218 
Home equity2,173 — (18)159 258 2,572 
Consumer other12,188 (404)(4,271)389 2,502 10,404 
Total allowance for credit losses$96,270 $(401)$(15,621)$2,952 $17,019 $100,219 
(In thousands)Balance at Beginning of PeriodCharge-offsRecoveriesProvision for Credit LossesBalance at End of Period
Six months ended June 30, 2022
Construction$3,206 $— $— $(1,496)$1,710 
Commercial multifamily6,120 — — (1,499)4,621 
Commercial real estate owner occupied12,752 (428)306 (1,942)10,688 
Commercial real estate non-owner occupied32,106 (4,884)1,312 (2,369)26,165 
Commercial and industrial22,584 (1,405)1,872 (137)22,914 
Residential real estate22,406 (380)587 (6,203)16,410 
Home equity4,006 — 246 (1,424)2,828 
Consumer other2,914 (548)238 11,081 13,685 
Total allowance for credit losses$106,094 $(7,645)$4,561 $(3,989)$99,021 
Schedule of Allowance for Credit Losses on Unfunded Loan Commitments, Activity The Company’s activity in the allowance for credit losses on unfunded commitments for the three and six months ended June 30, 2023 and 2022 was as follows:
Three Months Ended
June 30,
(In thousands)20232022
Balance at beginning of period$8,687 $7,043 
Expense for credit losses— — 
Balance at end of period$8,687 $7,043 
Six Months Ended June 30,
(In thousands)20232022
Balance at beginning of period$8,588 $7,043 
Expense for credit losses99 — 
Balance at end of period$8,687 $7,043 
Schedule of Loans by Risk Rating
The following table presents the Company’s loans by risk category:
Term Loans Amortized Cost Basis by Origination Year
(In thousands)20232022202120202019PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
As of June 30, 2023
Construction
Current period gross write-offs$— $— $— $— $— $$— $— $
Risk rating
Pass$39,770 $220,919 $136,426 $26,884 $2,961 $498 $— $— $427,458 
Special Mention— — — — — — — — — 
Substandard— — 16,398 — — — — — 16,398 
Total$39,770 $220,919 $152,824 $26,884 $2,961 $498 $— $— $443,856 
Commercial multifamily:
Current period gross write-offs$— $— $— $— $— $— $— $— $— 
Risk rating
Pass$9,125 $204,033 $52,630 $27,276 $96,568 $198,555 $974 $— $589,161 
Special Mention— — — — — — — — — 
Substandard— — 246 2,591 — 5,474 — — 8,311 
Total$9,125 $204,033 $52,876 $29,867 $96,568 $204,029 $974 $— $597,472 
Commercial real estate owner occupied:
Current period gross write-offs$— $— $— $380 $— $84 $— $— $464 
Risk rating
Pass$51,966 $128,185 $131,822 $50,248 $98,040 $223,794 $1,538 $— $685,593 
Special Mention— 11 — 387 4,412 200 — — 5,010 
Substandard— — 82 107 369 5,610 — — 6,168 
Total$51,966 $128,196 $131,904 $50,742 $102,821 $229,604 $1,538 $— $696,771 
Commercial real estate non-owner occupied:
Current period gross write-offs$— $— $— $— $— $— $— $— $— 
Risk rating
Pass$208,347 $630,930 $391,646 $172,266 $248,566 $792,740 $17,388 $— $2,461,883 
Special Mention— — — — 47,261 9,966 — — 57,227 
Substandard— — — 6,994 5,944 24,988 — — 37,926 
Total$208,347 $630,930 $391,646 $179,260 $301,771 $827,694 $17,388 $— $2,557,036 
Commercial and industrial:
Current period gross write-offs$— $— $395 $1,656 $733 $5,531 $2,312 $— $10,627 
Risk rating
Pass$95,442 $240,907 $132,980 $43,719 $48,622 $178,417 $619,184 $— $1,359,271 
Special Mention175 3,369 1,830 2,257 1,986 1,854 21,159 — 32,630 
Substandard487 1,002 9,503 3,157 6,285 13,414 9,272 — 43,120 
Doubtful— — — — — 47 2,994 — 3,041 
Total$96,104 $245,278 $144,313 $49,133 $56,893 $193,732 $652,609 $— $1,438,062 
Term Loans Amortized Cost Basis by Origination Year
(In thousands)20232022202120202019PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
Residential real estate
Current period gross write-offs$— $50 $— $— $174 $16 $— $— $240 
Risk rating
Pass$419,626 $997,566 $271,542 $92,781 $69,856 $810,003 $201 $— $2,661,575 
Special Mention— — 1,378 — 237 910 — — 2,525 
Substandard— 134 581 432 1,194 10,612 — — 12,953 
Total$419,626 $997,700 $273,501 $93,213 $71,287 $821,525 $201 $— $2,677,053 
Term Loans Amortized Cost Basis by Origination Year
(In thousands)20222021202020192018PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
As of December 31, 2022
Construction
Risk rating
Pass$153,393 $133,708 $25,634 $3,432 $1,361 $1,924 $— $— $319,452 
Special Mention— — — — — — — — — 
Substandard— — — — — — — — — 
Total$153,393 $133,708 $25,634 $3,432 $1,361 $1,924 $— $— $319,452 
Commercial multifamily:
Risk rating
Pass$205,124 $61,032 $27,583 $100,696 $67,675 $149,633 $205 $— $611,948 
Special Mention— — 2,628 — — — — — 2,628 
Substandard— — — — 5,512 — — — 5,512 
Total$205,124 $61,032 $30,211 $100,696 $73,187 $149,633 $205 $— $620,088 
Commercial real estate owner occupied:
Risk rating
Pass$131,096 $127,270 $58,835 $82,576 $75,322 $154,056 $3,464 $— $632,619 
Special Mention— — 387 — — — — — 387 
Substandard1,003 122 31 282 1,056 4,989 — — 7,483 
Total$132,099 $127,392 $59,253 $82,858 $76,378 $159,045 $3,464 $— $640,489 
Commercial real estate non-owner occupied:
Risk rating
Pass$621,685 $410,359 $175,456 $333,783 $313,124 $530,322 $17,846 $— $2,402,575 
Special Mention— — — — 20,000 18,462 — — 38,462 
Substandard— — 7,237 13,623 15,610 18,730 — — 55,200 
Total$621,685 $410,359 $182,693 $347,406 $348,734 $567,514 $17,846 $— $2,496,237 
Commercial and industrial:
Risk rating
Pass$282,781 $147,070 $56,880 $67,975 $83,223 $99,367 $648,956 $— $1,386,252 
Special Mention— 5,811 1,290 1,332 11,502 912 2,632 — 23,479 
Substandard204 496 3,640 8,139 1,981 2,799 10,581 — 27,840 
Doubtful— — — — — 56 7,609 — 7,665 
Total$282,985 $153,377 $61,810 $77,446 $96,706 $103,134 $669,778 $— $1,445,236 
Residential real estate
Risk rating
Pass$997,981 $280,308 $96,548 $70,845 $138,894 $713,744 $165 $— $2,298,485 
Special Mention— 364 — 861 202 707 — — 2,134 
Substandard— 284 448 267 1,857 8,972 — — 11,828 
Total$997,981 $280,956 $96,996 $71,973 $140,953 $723,423 $165 $— $2,312,447 
For home equity and consumer other loan portfolio segments, Berkshire evaluates credit quality based on the aging status of the loan and by payment activity. The performing or nonperforming status is updated on an ongoing basis dependent upon improvement and deterioration in credit quality. The following table presents the amortized cost based on payment activity:
Term Loans Amortized Cost Basis by Origination Year
(In thousands)20232022202120202019PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
As of June 30, 2023
Home equity:
Current period gross write-offs$— $— $— $— $— $— $18 $— $18 
Payment performance
Performing$— $— $108 $446 $— $2,523 $220,260 $— $223,337 
Nonperforming— — — — — — 2,097 — 2,097 
Total$— $— $108 $446 $— $2,523 $222,357 $— $225,434 
Consumer other:
Current period gross write-offs$$3,622 $466 $$33 $142 $— $— $4,271 
Payment performance
Performing$26,460 $134,609 $23,959 $7,082 $9,591 $33,090 $10,208 $— $244,999 
Nonperforming583 139 35 148 805 — 1,719 
Total$26,467 $135,192 $24,098 $7,117 $9,739 $33,895 $10,210 $— $246,718 
Term Loans Amortized Cost Basis by Origination Year
(In thousands)20222021202020192018PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
As of December 31, 2022
Home equity:
Payment performance
Performing$— $114 $454 $— $— $17 $224,746 $— $225,331 
Nonperforming— — — — — — 2,119 — 2,119 
Total$— $114 $454 $— $— $17 $226,865 $— $227,450 
Consumer other:
Payment performance
Performing$161,157 $28,279 $8,312 $12,670 $27,608 $24,682 $9,070 $— $271,778 
Nonperforming588 137 44 280 477 567 39 — 2,132 
Total$161,745 $28,416 $8,356 $12,950 $28,085 $25,249 $9,109 $— $273,910 
The following table summarizes information about total loans rated Special Mention or lower at June 30, 2023 and December 31, 2022. The table below includes consumer loans that are Special Mention and Substandard accruing that are classified as performing based on payment activity.

(In thousands)June 30, 2023December 31, 2022
Non-Accrual$28,388 $31,114 
Substandard Accruing 103,327 88,665 
Total Classified131,715 119,779 
Special Mention 99,318 68,127 
Total Criticized$231,033 $187,906 
Schedule of Past Due Loans
The following is a summary of loans by past due status at June 30, 2023 and December 31, 2022:
(In thousands)30-59 Days Past Due60-89 Days Past Due90 Days or Greater Past DueTotal Past DueCurrentTotal Loans
June 30, 2023
Construction$— $— $— $— $443,856 $443,856 
Commercial multifamily— — — — 597,472 597,472 
Commercial real estate owner occupied959 650 2,207 3,816 692,955 696,771 
Commercial real estate non-owner occupied151 117 162 430 2,556,606 2,557,036 
Commercial and industrial1,316 679 17,156 19,151 1,418,911 1,438,062 
Residential real estate4,328 2,526 12,859 19,713 2,657,340 2,677,053 
Home equity547 327 2,097 2,971 222,463 225,434 
Consumer other1,918 1,629 1,719 5,266 241,452 246,718 
Total$9,219 $5,928 $36,200 $51,347 $8,831,055 $8,882,402 
(In thousands)30-59 Days Past Due60-89 Days Past Due90 Days or Greater Past DueTotal Past DueCurrentTotal Loans
December 31, 2022
Construction$— $— $— $— $319,452 $319,452 
Commercial multifamily— 214 — 214 619,874 620,088 
Commercial real estate owner occupied122 — 3,302 3,424 637,065 640,489 
Commercial real estate non-owner occupied143 — 191 334 2,495,903 2,496,237 
Commercial and industrial1,173 1,438 18,658 21,269 1,423,967 1,445,236 
Residential real estate3,694 2,134 11,724 17,552 2,294,895 2,312,447 
Home equity168 57 2,119 2,344 225,106 227,450 
Consumer other1,990 1,028 2,158 5,176 268,734 273,910 
Total$7,290 $4,871 $38,152 $50,313 $8,284,996 $8,335,309 
Schedule of Loans on Nonaccrual Status and Loans Past Due
The following is a summary of loans on nonaccrual status and loans past due 90 days or more and still accruing as of June 30, 2023 and December 31, 2022:
(In thousands)Nonaccrual Amortized CostNonaccrual With No Related AllowancePast Due 90 Days or Greater and AccruingInterest Income Recognized on Nonaccrual
At or for the three months ended June 30, 2023
Construction$— $— $— $— 
Commercial multifamily— — — — 
Commercial real estate owner occupied1,399 421 808 — 
Commercial real estate non-owner occupied162 59 — — 
Commercial and industrial15,489 8,503 1,667 — 
Residential real estate8,971 5,668 3,888 — 
Home equity1,491 452 606 — 
Consumer other876 — 843 — 
Total$28,388 $15,103 $7,812 $— 
The commercial and industrial loans nonaccrual amortized cost as of June 30, 2023 included medallion loans with a fair value of $0.4 million and a contractual balance of $9.3 million.
(In thousands) Nonaccrual Amortized CostNonaccrual With No Related AllowancePast Due 90 Days or Greater and AccruingInterest Income Recognized on Nonaccrual
At or for the three months ended December 31, 2022
Construction$— $— $— $— 
Commercial multifamily— — — — 
Commercial real estate owner occupied2,202 1,411 1,100 — 
Commercial real estate non-owner occupied191 73 — — 
Commercial and industrial16,992 14,223 1,666 — 
Residential real estate8,901 5,307 2,823 — 
Home equity1,568 388 551 — 
Consumer other1,260 898 — 
Total$31,114 $21,404 $7,038 $— 
Schedule of Collateral Dependent Loans The following table presents the amortized cost basis of individually analyzed collateral-dependent loans by loan portfolio segment:
Type of Collateral
(In thousands)Real EstateInvestment Securities/CashOther
June 30, 2023
Construction$— $— $— 
Commercial multifamily— — 
Commercial real estate owner occupied798 — — 
Commercial real estate non-owner occupied666 — — 
Commercial and industrial5,022 — 7,320 
Residential real estate7,514 — — 
Home equity471 — — 
Consumer other— — — 
Total loans$14,471 $— $7,320 
December 31, 2022
Construction$— $— $— 
Commercial multifamily— — — 
Commercial real estate owner occupied2,793 — — 
Commercial real estate non-owner occupied384 — — 
Commercial and industrial288 — 16,931 
Residential real estate3,910 — — 
Home equity501 — — 
Consumer other— — 
Total loans$7,878 $— $16,931 
Financing Receivable, Modified
The following table presents the amortized cost basis of loans at June 30, 2023 that were both experiencing financial difficulty and modified during the three and six months ended June 30, 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 cost basis of each class of financing receivable is also presented below:

(In thousands)Principal ForgivenessPayment DelayTerm ExtensionInterest Rate ReductionCombination Term Extension and Principal ForgivenessCombination Term Extension and Interest Rate ReductionTotal Class of Financing Receivable
Three months ended June 30, 2023
Construction$— $— $— $— $— $— — %
Commercial multifamily— — — — — — — 
Commercial real estate owner occupied— — — — — — — 
Commercial real estate non-owner occupied— — 11,733 — — — 0.46 
Commercial and industrial— — 1,291 — — — 0.09 
Residential real estate— — — — — — — 
Home equity— — — — — — — 
Consumer other— — — — — — — 
Total$— $— $13,024 $— $— $— — %
(In thousands)Principal ForgivenessPayment DelayTerm ExtensionInterest Rate ReductionCombination Term Extension and Principal ForgivenessCombination Term Extension and Interest Rate ReductionTotal Class of Financing Receivable
Six months ended June 30, 2023
Construction$— $— $— $— $— $— — %
Commercial multifamily— — — — — — — 
Commercial real estate owner occupied— 387 — — — — 0.06 
Commercial real estate non-owner occupied— — 11,733 — — — 0.46 
Commercial and industrial— — 1,291 — 10 — 0.09 
Residential real estate— — — — — — — 
Home equity— — — — — — — 
Consumer other— — — — — — — 
Total$— $387 $13,024 $— $10 $— — %
The Company has not committed to lend additional amounts to the borrowers included in the previous table.

The Company 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 twelve months.
(In thousands)30 - 59 Days Past Due60 - 89 Days Past DueGreater Than 89 Days Past DueTotal Past Due
Three months ended June 30, 2023
Construction$— $— $— $— 
Commercial multifamily— — — — 
Commercial real estate owner occupied— — — — 
Commercial real estate non-owner occupied— — — — 
Commercial and industrial— — — — 
Residential real estate— — — — 
Home equity— — — — 
Consumer other— — — — 
Total$— $— $— $— 
(In thousands)30 - 59 Days Past Due60 - 89 Days Past DueGreater Than 89 Days Past DueTotal Past Due
Six months ended June 30, 2023
Construction$— $— $— $— 
Commercial multifamily— — — — 
Commercial real estate owner occupied— — — — 
Commercial real estate non-owner occupied— — — — 
Commercial and industrial— — — — 
Residential real estate— — — — 
Home equity— — — — 
Consumer other— — — — 
Total$— $— $— $— 
The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the three and six months ended June 30, 2023:
(In thousands)Principal ForgivenessWeighted Average Interest Rate ReductionWeighted Average Term Extension (months)
Three months ended June 30, 2023
Construction$— — %0
Commercial multifamily— — 0
Commercial real estate owner occupied— — 0
Commercial real estate non-owner occupied— — 12
Commercial and industrial— — 119
Residential real estate— — 0
Home equity— — 0
Consumer other— — 0
(In thousands)Principal ForgivenessWeighted Average Interest Rate ReductionWeighted Average Term Extension (months)
Six months ended June 30, 2023
Construction$— — %0
Commercial multifamily— — 0
Commercial real estate owner occupied— — 120
Commercial real estate non-owner occupied— — 0
Commercial and industrial— 1.25 118
Residential real estate— — 0
Home equity— — 0
Consumer other— — 0