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v3.23.2

Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses (Tables) | 6 Months Ended
--- | ---
Jun. 30, 2023
Receivables [Abstract] |
Loan Composition Schedule | Loan and lease receivables consist of the following:
|  | June 30, 2023 |  | December 31, 2022
|  | (In Thousands)
Commercial real estate: |  |  |  |
Commercial real estate — owner occupied |  | $ | 244,039 |  |  | $ | 268,354 |
Commercial real estate — non-owner occupied |  | 715,309 |  |  | 687,091 |
Construction |  | 217,069 |  |  | 218,751 |
Multi-family |  | 392,297 |  |  | 350,026 |
1-4 family |  | 23,063 |  |  | 17,728 |
Total commercial real estate |  | 1,591,777 |  |  | 1,541,950 |
Commercial and industrial |  | 1,036,921 |  |  | 853,327 |
Consumer and other |  | 45,743 |  |  | 47,938 |
Total gross loans and leases receivable |  | 2,674,441 |  |  | 2,443,215 |
Less: |  |  |  |
Allowance for credit losses |  | 28,115 |  |  | 24,230 |
Deferred loan fees and costs, net |  | (142) |  |  | 149 |
Loans and leases receivable, net |  | $ | 2,646,468 |  |  | $ | 2,418,836 |
Financing Receivable by Credit Quality Indicators | The following table illustrates ending balances of the Corporation’s loan and lease portfolio, including non-performing loans by class of receivable, and considering certain credit quality indicators:
June 30, 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 |  | $ | 23,644 |  |  | $ | 35,157 |  |  | $ | 28,367 |  |  | $ | 47,336 |  |  | $ | 22,423 |  |  | $ | 77,763 |  |  | $ | 1,265 |  |  | $ | 235,955 |
II |  | — |  |  | — |  |  | — |  |  | 294 |  |  | — |  |  | 2,207 |  |  | — |  |  | 2,501 |
III |  | — |  |  | — |  |  | — |  |  | 5,131 |  |  | — |  |  | 452 |  |  | — |  |  | 5,583 |
IV |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total |  | $ | 23,644 |  |  | $ | 35,157 |  |  | $ | 28,367 |  |  | $ | 52,761 |  |  | $ | 22,423 |  |  | $ | 80,422 |  |  | $ | 1,265 |  |  | $ | 244,039 |
Commercial real estate — non-owner occupied |  |  |  |  |  |  |  |  |  |  |  |
Category |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
I |  | $ | 48,857 |  |  | $ | 75,732 |  |  | $ | 74,036 |  |  | $ | 53,939 |  |  | $ | 62,498 |  |  | $ | 311,158 |  |  | $ | 29,828 |  |  | $ | 656,048 |
II |  | — |  |  | — |  |  | — |  |  | — |  |  | 6,147 |  |  | 9,244 |  |  | — |  |  | 15,391 |
III |  | — |  |  | — |  |  | — |  |  | — |  |  | 19,584 |  |  | 24,286 |  |  | — |  |  | 43,870 |
IV |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total |  | $ | 48,857 |  |  | $ | 75,732 |  |  | $ | 74,036 |  |  | $ | 53,939 |  |  | $ | 88,229 |  |  | $ | 344,688 |  |  | $ | 29,828 |  |  | $ | 715,309 |
Construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Category |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
I |  | $ | 6,197 |  |  | $ | 81,740 |  |  | $ | 54,629 |  |  | $ | 34,823 |  |  | $ | 445 |  |  | $ | 30,654 |  |  | $ | 8,581 |  |  | $ | 217,069 |
II |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
III |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
IV |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total |  | $ | 6,197 |  |  | $ | 81,740 |  |  | $ | 54,629 |  |  | $ | 34,823 |  |  | $ | 445 |  |  | $ | 30,654 |  |  | $ | 8,581 |  |  | $ | 217,069 |
Multi-family |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Category |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
I |  | $ | 44,240 |  |  | $ | 35,524 |  |  | $ | 49,521 |  |  | $ | 114,442 |  |  | $ | 23,103 |  |  | $ | 122,455 |  |  | $ | 3,012 |  |  | $ | 392,297 |
II |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
III |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
IV |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total |  | $ | 44,240 |  |  | $ | 35,524 |  |  | $ | 49,521 |  |  | $ | 114,442 |  |  | $ | 23,103 |  |  | $ | 122,455 |  |  | $ | 3,012 |  |  | $ | 392,297 |
1-4 family |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Category |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
I |  | $ | — |  |  | $ | 8,274 |  |  | $ | 2,727 |  |  | $ | 2,397 |  |  | $ | 459 |  |  | $ | 3,075 |  |  | $ | 6,008 |  |  | $ | 22,940 |
II |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 97 |  |  | — |  |  | 97 |
III |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
IV |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 26 |  |  | — |  |  | 26 |
Total |  | $ | — |  |  | $ | 8,274 |  |  | $ | 2,727 |  |  | $ | 2,397 |  |  | $ | 459 |  |  | $ | 3,198 |  |  | $ | 6,008 |  |  | $ | 23,063 |
June 30, 2023 |  | Term Loans Amortized Cost Basis by Origination Year |  |  |  |
(In Thousands) |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | 2019 |  | Prior |  | Revolving Loans Amortized Cost Basis |  | Total
Commercial and industrial |  |  |  |  |  |  |  |  |  |  |  |  |  |
Category |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
I |  | $ | 169,085 |  |  | $ | 175,555 |  |  | $ | 99,846 |  |  | $ | 49,115 |  |  | $ | 24,895 |  |  | $ | 32,063 |  |  | $ | 414,927 |  |  | $ | 965,486 |
II |  | 395 |  |  | 6,417 |  |  | 860 |  |  | 600 |  |  | 3,523 |  |  | 103 |  |  | 8,960 |  |  | 20,858 |
III |  | — |  |  | 3,770 |  |  | 5,691 |  |  | 11,377 |  |  | 1,282 |  |  | 5,193 |  |  | 7,569 |  |  | 34,882 |
IV |  | 174 |  |  | 2,584 |  |  | 1,100 |  |  | 404 |  |  | 201 |  |  | 334 |  |  | 10,898 |  |  | 15,695 |
Total |  | $ | 169,654 |  |  | $ | 188,326 |  |  | $ | 107,497 |  |  | $ | 61,496 |  |  | $ | 29,901 |  |  | $ | 37,693 |  |  | $ | 442,354 |  |  | $ | 1,036,921 |
Consumer and other |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Category |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
I |  | $ | 6,224 |  |  | $ | 9,317 |  |  | $ | 3,363 |  |  | $ | 12,978 |  |  | $ | 2,269 |  |  | $ | 4,503 |  |  | $ | 7,089 |  |  | $ | 45,743 |
II |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
III |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
IV |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total |  | $ | 6,224 |  |  | $ | 9,317 |  |  | $ | 3,363 |  |  | $ | 12,978 |  |  | $ | 2,269 |  |  | $ | 4,503 |  |  | $ | 7,089 |  |  | $ | 45,743 |
Past Due Financing Receivables | The delinquency aging of the loan and lease portfolio by class of receivable was as follows:
|  | June 30, 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)
Performing loans and leases |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 244,039 |  |  | $ | 244,039 |
Non-owner occupied |  | — |  |  | — |  |  | — |  |  | — |  |  | 715,309 |  |  | 715,309 |
Construction |  | — |  |  | — |  |  | — |  |  | — |  |  | 217,069 |  |  | 217,069 |
Multi-family |  | — |  |  | — |  |  | — |  |  | — |  |  | 392,297 |  |  | 392,297 |
1-4 family |  | — |  |  | — |  |  | — |  |  | — |  |  | 23,037 |  |  | 23,037 |
Commercial and industrial |  | 1,907 |  |  | 499 |  |  | — |  |  | 2,406 |  |  | 1,018,820 |  |  | 1,021,226 |
Consumer and other |  | — |  |  | — |  |  | — |  |  | — |  |  | 45,743 |  |  | 45,743 |
Total |  | 1,907 |  |  | 499 |  |  | — |  |  | 2,406 |  |  | 2,656,314 |  |  | 2,658,720 |
Non-performing loans and leases |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Non-owner occupied |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Construction |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Multi-family |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
1-4 family |  | — |  |  | — |  |  | — |  |  | — |  |  | 26 |  |  | 26 |
Commercial and industrial |  | 123 |  |  | 141 |  |  | 3,548 |  |  | 3,812 |  |  | 11,883 |  |  | 15,695 |
Consumer and other |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total |  | 123 |  |  | 141 |  |  | 3,548 |  |  | 3,812 |  |  | 11,909 |  |  | 15,721 |
Total loans and leases |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied |  | — |  |  | — |  |  | — |  |  | — |  |  | 244,039 |  |  | 244,039 |
Non-owner occupied |  | — |  |  | — |  |  | — |  |  | — |  |  | 715,309 |  |  | 715,309 |
Construction |  | — |  |  | — |  |  | — |  |  | — |  |  | 217,069 |  |  | 217,069 |
Multi-family |  | — |  |  | — |  |  | — |  |  | — |  |  | 392,297 |  |  | 392,297 |
1-4 family |  | — |  |  | — |  |  | — |  |  | — |  |  | 23,063 |  |  | 23,063 |
Commercial and industrial |  | 2,030 |  |  | 640 |  |  | 3,548 |  |  | 6,218 |  |  | 1,030,703 |  |  | 1,036,921 |
Consumer and other |  | — |  |  | — |  |  | — |  |  | — |  |  | 45,743 |  |  | 45,743 |
Total |  | $ | 2,030 |  |  | $ | 640 |  |  | $ | 3,548 |  |  | $ | 6,218 |  |  | $ | 2,668,223 |  |  | $ | 2,674,441 |
Percent of portfolio |  | 0.08 | % |  | 0.02 | % |  | 0.13 | % |  | 0.23 | % |  | 99.77 | % |  | 100.00 | %
|  | December 31, 2022
|  | 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)
Performing loans and leases |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 268,354 |  |  | $ | 268,354 |
Non-owner occupied |  | 215 |  |  | — |  |  | — |  |  | 215 |  |  | 686,876 |  |  | 687,091 |
Construction |  | — |  |  | — |  |  | — |  |  | — |  |  | 218,751 |  |  | 218,751 |
Multi-family |  | — |  |  | — |  |  | — |  |  | — |  |  | 350,026 |  |  | 350,026 |
1-4 family |  | — |  |  | — |  |  | — |  |  | — |  |  | 17,698 |  |  | 17,698 |
Commercial and industrial |  | 1,437 |  |  | 403 |  |  | — |  |  | 1,840 |  |  | 847,858 |  |  | 849,698 |
Consumer and other |  | — |  |  | — |  |  | — |  |  | — |  |  | 47,938 |  |  | 47,938 |
Total |  | 1,652 |  |  | 403 |  |  | — |  |  | 2,055 |  |  | 2,437,501 |  |  | 2,439,556 |
Non-performing loans and leases |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Non-owner occupied |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Construction |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Multi-family |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
1-4 family |  | — |  |  | — |  |  | — |  |  | — |  |  | 30 |  |  | 30 |
Commercial and industrial |  | 439 |  |  | 126 |  |  | 2,464 |  |  | 3,029 |  |  | 600 |  |  | 3,629 |
Other |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total |  | 439 |  |  | 126 |  |  | 2,464 |  |  | 3,029 |  |  | 630 |  |  | 3,659 |
Total loans and leases |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied |  | — |  |  | — |  |  | — |  |  | — |  |  | 268,354 |  |  | 268,354 |
Non-owner occupied |  | 215 |  |  | — |  |  | — |  |  | 215 |  |  | 686,876 |  |  | 687,091 |
Construction |  | — |  |  | — |  |  | — |  |  | — |  |  | 218,751 |  |  | 218,751 |
Multi-family |  | — |  |  | — |  |  | — |  |  | — |  |  | 350,026 |  |  | 350,026 |
1-4 family |  | — |  |  | — |  |  | — |  |  | — |  |  | 17,728 |  |  | 17,728 |
Commercial and industrial |  | 1,876 |  |  | 529 |  |  | 2,464 |  |  | 4,869 |  |  | 848,458 |  |  | 853,327 |
Consumer and other |  | — |  |  | — |  |  | — |  |  | — |  |  | 47,938 |  |  | 47,938 |
Total |  | $ | 2,091 |  |  | $ | 529 |  |  | $ | 2,464 |  |  | $ | 5,084 |  |  | $ | 2,438,131 |  |  | $ | 2,443,215 |
Percent of portfolio |  | 0.09 | % |  | 0.02 | % |  | 0.10 | % |  | 0.21 | % |  | 99.79 | % |  | 100.00 | %
Schedule of Financing Receivables, Non-Performing Status | The Corporation’s total non-performing assets consisted of the following:
|  | June 30, 2023 |  | December 31, 2022
|  | (In Thousands)
Non-performing loans and leases |  |  |  |
Commercial real estate: |  |  |  |
Commercial real estate — owner occupied |  | $ | — |  |  | $ | — |
Commercial real estate — non-owner occupied |  | — |  |  | — |
Construction |  | — |  |  | — |
Multi-family |  | — |  |  | — |
1-4 family |  | 26 |  |  | 30 |
Total non-performing commercial real estate |  | 26 |  |  | 30 |
Commercial and industrial |  | 15,695 |  |  | 3,629 |
Consumer and other |  | — |  |  | — |
Total non-performing loans and leases |  | 15,721 |  |  | 3,659 |
Repossessed assets, net |  | 65 |  |  | 95 |
Total non-performing assets |  | $ | 15,786 |  |  | $ | 3,754 |
|  | June 30, 2023 |  | December 31, 2022
Total non-performing loans and leases to gross loans and leases |  | 0.59 | % |  | 0.15 | %
Total non-performing assets to total gross loans and leases plus repossessed assets, net |  | 0.59 |  |  | 0.15 |
Total non-performing assets to total assets |  | 0.48 |  |  | 0.13 |
Allowance for credit losses to gross loans and leases |  | 1.11 |  |  | 0.99 |
Allowance for credit losses to non-performing loans and leases |  | 188.90 |  |  | 662.20 |
Impaired Financing Receivables | The following represents additional information regarding the Corporation’s non-performing loans and leases, by portfolio segment:
|  | As of and for the Six Months Ended June 30, 2023
|  | Recorded Investment(1) |  | Unpaid Principal Balance |  | Individual Reserve |  | Average Recorded Investment(2) |  | Foregone Interest Income |  | Interest Income Recognized |  | Net Foregone Interest Income
|  | (In Thousands)
With no individual reserve recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Non-owner occupied |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Construction |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Multi-family |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
1-4 family |  | 26 |  |  | 31 |  |  | — |  |  | 28 |  |  | 2 |  |  | 11 |  |  | (9) |
Commercial and industrial |  | 11,264 |  |  | 11,265 |  |  | — |  |  | 1,138 |  |  | 46 |  |  | 59 |  |  | (13) |
Consumer and other |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total |  | 11,290 |  |  | 11,296 |  |  | — |  |  | 1,166 |  |  | 48 |  |  | 70 |  |  | (22) |
With individual reserve recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Non-owner occupied |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Construction |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Multi-family |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
1-4 family |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Commercial and industrial |  | 4,431 |  |  | 4,431 |  |  | 2,715 |  |  | 2,493 |  |  | 142 |  |  | 3 |  |  | 139 |
Consumer and other |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total |  | 4,431 |  |  | 4,431 |  |  | 2,715 |  |  | 2,493 |  |  | 142 |  |  | 3 |  |  | 139 |
Total: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Non-owner occupied |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Construction |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Multi-family |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
1-4 family |  | 26 |  |  | 31 |  |  | — |  |  | 28 |  |  | 2 |  |  | 11 |  |  | (9) |
Commercial and industrial |  | 15,695 |  |  | 15,696 |  |  | 2,715 |  |  | 3,631 |  |  | 188 |  |  | 62 |  |  | 126 |
Consumer and other |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Grand total |  | $ | 15,721 |  |  | $ | 15,727 |  |  | $ | 2,715 |  |  | $ | 3,659 |  |  | $ | 190 |  |  | $ | 73 |  |  | $ | 117 |
(1)The recorded investment represents the unpaid principal balance net of any partial charge-offs. (2)Average recorded investment is calculated primarily using daily average balances.
|  | As of and for the Year Ended December 31, 2022
|  | Recorded Investment(1) |  | Unpaid Principal Balance |  | Individual Reserve |  | Average Recorded Investment(2) |  | Foregone Interest Income |  | Interest Income Recognized |  | Net Foregone Interest Income
|  | (In Thousands)
With no individual reserve recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 180 |  |  | $ | 14 |  |  | $ | 759 |  |  | $ | (745) |
Non-owner occupied |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | (1) |
Construction |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 47 |  |  | (47) |
Multi-family |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
1-4 family |  | 30 |  |  | 35 |  |  | — |  |  | 112 |  |  | 8 |  |  | 41 |  |  | (33) |
Commercial and industrial |  | 1,037 |  |  | 1,037 |  |  | — |  |  | 3,153 |  |  | 277 |  |  | 587 |  |  | (310) |
Consumer and other |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total |  | 1,067 |  |  | 1,072 |  |  | — |  |  | 3,445 |  |  | 299 |  |  | 1,435 |  |  | (1,136) |
With individual reserve recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Non-owner occupied |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Construction |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Multi-family |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
1-4 family |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Commercial and industrial |  | 2,592 |  |  | 2,612 |  |  | 1,650 |  |  | 1,454 |  |  | 101 |  |  | 1 |  |  | 100 |
Consumer and other |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total |  | 2,592 |  |  | 2,612 |  |  | 1,650 |  |  | 1,454 |  |  | 101 |  |  | 1 |  |  | 100 |
Total: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied |  | — |  |  | — |  |  | — |  |  | 180 |  |  | 14 |  |  | 759 |  |  | (745) |
Non-owner occupied |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | (1) |
Construction |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 47 |  |  | (47) |
Multi-family |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
1-4 family |  | 30 |  |  | 35 |  |  | — |  |  | 112 |  |  | 8 |  |  | 41 |  |  | (33) |
Commercial and industrial |  | 3,629 |  |  | 3,649 |  |  | 1,650 |  |  | 4,607 |  |  | 378 |  |  | 588 |  |  | (210) |
Consumer and other |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Grand total |  | $ | 3,659 |  |  | $ | 3,684 |  |  | $ | 1,650 |  |  | $ | 4,899 |  |  | $ | 400 |  |  | $ | 1,436 |  |  | $ | (1,036) |
(1)The recorded investment represents the unpaid principal balance net of any partial charge-offs. (2)Average recorded investment is calculated primarily using daily average balances.
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 Three Months Ended June 30, 2023
|  | Owner Occupied |  | Non-Owner Occupied |  | Construction |  | Multi-Family |  | 1-4 Family |  | Commercial and Industrial |  | Consumer and Other |  | Total
|  | (In Thousands)
Beginning balance |  | $ | 1,656 |  |  | $ | 4,966 |  |  | $ | 2,287 |  |  | $ | 2,901 |  |  | $ | 221 |  |  | $ | 14,905 |  |  | $ | 614 |  |  | $ | 27,550 |
Charge-offs |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (329) |  |  | — |  |  | (329) |
Recoveries |  | 2 |  |  | — |  |  | — |  |  | — |  |  | 21 |  |  | 220 |  |  | 2 |  |  | 245 |
Net recoveries (charge-offs) |  | 2 |  |  | — |  |  | — |  |  | — |  |  | 21 |  |  | (109) |  |  | 2 |  |  | (84) |
Provision for credit losses |  | 63 |  |  | 275 |  |  | 6 |  |  | 525 |  |  | 7 |  |  | 1,427 |  |  | (72) |  |  | 2,231 |
Ending balance |  | $ | 1,721 |  |  | $ | 5,241 |  |  | $ | 2,293 |  |  | $ | 3,426 |  |  | $ | 249 |  |  | $ | 16,223 |  |  | $ | 544 |  |  | $ | 29,697 |
Components: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for loan losses |  | 1,703 |  |  | 5,182 |  |  | 1,483 |  |  | 3,414 |  |  | 228 |  |  | 15,624 |  |  | 481 |  |  | 28,115 |
Allowance for unfunded credit commitments |  | 18 |  |  | 59 |  |  | 810 |  |  | 12 |  |  | 21 |  |  | 599 |  |  | 63 |  |  | 1,582 |
Total ACL |  | $ | 1,721 |  |  | $ | 5,241 |  |  | $ | 2,293 |  |  | $ | 3,426 |  |  | $ | 249 |  |  | $ | 16,223 |  |  | $ | 544 |  |  | $ | 29,697 |
|  | As of and for the Three Months Ended June 30, 2022
|  | Commercial Real Estate |  | Commercial and Industrial |  | Consumer and Other |  | Total
|  | (In Thousands)
Beginning balance |  | $ | 13,765 |  |  | $ | 8,912 |  |  | $ | 992 |  |  | $ | 23,669 |
Charge-offs |  | — |  |  | (85) |  |  | — |  |  | (85) |
Recoveries |  | 4,121 |  |  | 117 |  |  | 9 |  |  | 4,247 |
Net recoveries |  | 4,121 |  |  | 32 |  |  | 9 |  |  | 4,162 |
Provision for credit losses |  | (4,476) |  |  | 922 |  |  | (173) |  |  | (3,727) |
Ending balance |  | $ | 13,410 |  |  | $ | 9,866 |  |  | $ | 828 |  |  | $ | 24,104 |
|  | As of and for the Six Months Ended June 30, 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 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (495) |  |  | — |  |  | (495) |
Recoveries |  | 2 |  |  | 1 |  |  | — |  |  | — |  |  | 21 |  |  | 314 |  |  | 13 |  |  | 351 |
Net recoveries (charge-offs) |  | 2 |  |  | 1 |  |  | — |  |  | — |  |  | 21 |  |  | (181) |  |  | 13 |  |  | (144) |
Provision for credit losses |  | 157 |  |  | 374 |  |  | (149) |  |  | 1,178 |  |  | 66 |  |  | 2,128 |  |  | 39 |  |  | 3,793 |
Ending balance |  | $ | 1,721 |  |  | $ | 5,241 |  |  | $ | 2,293 |  |  | $ | 3,426 |  |  | $ | 249 |  |  | $ | 16,223 |  |  | $ | 544 |  |  | $ | 29,697 |
Components: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for loan losses |  | 1,703 |  |  | 5,182 |  |  | 1,483 |  |  | 3,414 |  |  | 228 |  |  | 15,624 |  |  | 481 |  |  | 28,115 |
Allowance for unfunded credit commitments |  | 18 |  |  | 59 |  |  | 810 |  |  | 12 |  |  | 21 |  |  | 599 |  |  | 63 |  |  | 1,582 |
Total ACL |  | $ | 1,721 |  |  | $ | 5,241 |  |  | $ | 2,293 |  |  | $ | 3,426 |  |  | $ | 249 |  |  | $ | 16,223 |  |  | $ | 544 |  |  | $ | 29,697 |
|  | As of and for the Six Months Ended June 30, 2022
|  | Commercial Real Estate |  | Commercial and Industrial |  | Consumer and Other |  | Total
|  | (In Thousands)
Beginning balance |  | $ | 15,110 |  |  | $ | 8,413 |  |  | $ | 813 |  |  | $ | 24,336 |
Charge-offs |  | — |  |  | (107) |  |  | — |  |  | (107) |
Recoveries |  | 4,237 |  |  | 201 |  |  | 19 |  |  | 4,457 |
Net recoveries (charge-offs) |  | 4,237 |  |  | 94 |  |  | 19 |  |  | 4,350 |
Provision for credit losses |  | (5,937) |  |  | 1,359 |  |  | (4) |  |  | (4,582) |
Ending balance |  | $ | 13,410 |  |  | $ | 9,866 |  |  | $ | 828 |  |  | $ | 24,104 |
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 June 30, 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 |  | $ | 1,703 |  |  | $ | 5,182 |  |  | $ | 1,483 |  |  | $ | 3,414 |  |  | $ | 228 |  |  | $ | 12,909 |  |  | $ | 481 |  |  | $ | 25,400 |
Individually evaluated for credit loss |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 2,715 |  |  | — |  |  | 2,715 |
Total |  | $ | 1,703 |  |  | $ | 5,182 |  |  | $ | 1,483 |  |  | $ | 3,414 |  |  | $ | 228 |  |  | $ | 15,624 |  |  | $ | 481 |  |  | $ | 28,115 |
Loans and lease receivables: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Collectively evaluated for credit losses |  | $ | 244,039 |  |  | $ | 715,309 |  |  | $ | 217,069 |  |  | $ | 392,297 |  |  | $ | 23,037 |  |  | $ | 1,021,226 |  |  | $ | 45,743 |  |  | $ | 2,658,720 |
Individually evaluated for credit loss |  | — |  |  | — |  |  | — |  |  | — |  |  | 26 |  |  | 15,695 |  |  | — |  |  | 15,721 |
Total |  | $ | 244,039 |  |  | $ | 715,309 |  |  | $ | 217,069 |  |  | $ | 392,297 |  |  | $ | 23,063 |  |  | $ | 1,036,921 |  |  | $ | 45,743 |  |  | $ | 2,674,441 |
|  | As of December 31, 2022
|  | Commercial Real Estate |  | Commercial and Industrial |  | Consumer and Other |  | Total
|  | (In Thousands)
Allowance for credit losses: |  |  |  |  |  |  |  |
Collectively evaluated for credit losses |  | $ | 11,361 |  |  | $ | 10,753 |  |  | $ | 466 |  |  | $ | 22,580 |
Individually evaluated for credit loss |  | — |  |  | 1,650 |  |  | — |  |  | 1,650 |
Total |  | $ | 11,361 |  |  | $ | 12,403 |  |  | $ | 466 |  |  | $ | 24,230 |
Loans and lease receivables: |  |  |  |  |  |  |  |
Collectively evaluated for credit losses |  | $ | 1,541,920 |  |  | $ | 849,698 |  |  | $ | 47,938 |  |  | $ | 2,439,556 |
Individually evaluated for credit loss |  | 30 |  |  | 3,629 |  |  | — |  |  | 3,659 |
Total |  | $ | 1,541,950 |  |  | $ | 853,327 |  |  | $ | 47,938 |  |  | $ | 2,443,215 |

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