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v3.23.3

Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses (Tables) | 9 Months Ended
--- | ---
Sep. 30, 2023
Receivables [Abstract] |
Loan Composition Schedule | Loan and lease receivables consist of the following:
|  | September 30, 2023 |  | December 31, 2022
|  | (In Thousands)
Commercial real estate: |  |  |  |
Commercial real estate — owner occupied |  | $ | 236,058 |  |  | $ | 268,354 |
Commercial real estate — non-owner occupied |  | 753,517 |  |  | 687,091 |
Construction |  | 211,828 |  |  | 218,751 |
Multi-family |  | 409,714 |  |  | 350,026 |
1-4 family |  | 24,235 |  |  | 17,728 |
Total commercial real estate |  | 1,635,352 |  |  | 1,541,950 |
Commercial and industrial |  | 1,083,698 |  |  | 853,327 |
Consumer and other |  | 44,808 |  |  | 47,938 |
Total gross loans and leases receivable |  | 2,763,858 |  |  | 2,443,215 |
Less: |  |  |  |
Allowance for credit losses |  | 29,331 |  |  | 24,230 |
Deferred loan fees and costs, net |  | (156) |  |  | 149 |
Loans and leases receivable, net |  | $ | 2,734,683 |  |  | $ | 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:
September 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 |  | $ | 23,686 |  |  | $ | 35,050 |  |  | $ | 30,899 |  |  | $ | 45,517 |  |  | $ | 22,815 |  |  | $ | 74,599 |  |  | $ | 854 |  |  | $ | 233,420 |
II |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 2,638 |  |  | — |  |  | 2,638 |
III |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
IV |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total |  | $ | 23,686 |  |  | $ | 35,050 |  |  | $ | 30,899 |  |  | $ | 45,517 |  |  | $ | 22,815 |  |  | $ | 77,237 |  |  | $ | 854 |  |  | $ | 236,058 |
Commercial real estate — non-owner occupied |  |  |  |  |  |  |  |  |  |  |  |
Category |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
I |  | $ | 63,933 |  |  | $ | 88,468 |  |  | $ | 73,530 |  |  | $ | 50,707 |  |  | $ | 61,700 |  |  | $ | 327,526 |  |  | $ | 30,764 |  |  | $ | 696,628 |
II |  | — |  |  | — |  |  | — |  |  | 2,277 |  |  | 16,621 |  |  | 9,177 |  |  | — |  |  | 28,075 |
III |  | — |  |  | — |  |  | — |  |  | — |  |  | 8,709 |  |  | 20,105 |  |  | — |  |  | 28,814 |
IV |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total |  | $ | 63,933 |  |  | $ | 88,468 |  |  | $ | 73,530 |  |  | $ | 52,984 |  |  | $ | 87,030 |  |  | $ | 356,808 |  |  | $ | 30,764 |  |  | $ | 753,517 |
Construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Category |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
I |  | $ | 22,994 |  |  | $ | 83,860 |  |  | $ | 48,685 |  |  | $ | 34,645 |  |  | $ | 439 |  |  | $ | 7,055 |  |  | $ | 14,150 |  |  | $ | 211,828 |
II |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
III |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
IV |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total |  | $ | 22,994 |  |  | $ | 83,860 |  |  | $ | 48,685 |  |  | $ | 34,645 |  |  | $ | 439 |  |  | $ | 7,055 |  |  | $ | 14,150 |  |  | $ | 211,828 |
Multi-family |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Category |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
I |  | $ | 66,904 |  |  | $ | 35,342 |  |  | $ | 48,858 |  |  | $ | 113,872 |  |  | $ | 23,015 |  |  | $ | 118,710 |  |  | $ | 3,013 |  |  | $ | 409,714 |
II |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
III |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
IV |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total |  | $ | 66,904 |  |  | $ | 35,342 |  |  | $ | 48,858 |  |  | $ | 113,872 |  |  | $ | 23,015 |  |  | $ | 118,710 |  |  | $ | 3,013 |  |  | $ | 409,714 |
1-4 family |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Category |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
I |  | $ | — |  |  | $ | 8,161 |  |  | $ | 2,710 |  |  | $ | 2,378 |  |  | $ | 451 |  |  | $ | 2,941 |  |  | $ | 7,570 |  |  | $ | 24,211 |
II |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
III |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
IV |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 24 |  |  | — |  |  | 24 |
Total |  | $ | — |  |  | $ | 8,161 |  |  | $ | 2,710 |  |  | $ | 2,378 |  |  | $ | 451 |  |  | $ | 2,965 |  |  | $ | 7,570 |  |  | $ | 24,235 |
September 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 |  | $ | 238,317 |  |  | $ | 154,061 |  |  | $ | 92,754 |  |  | $ | 43,801 |  |  | $ | 23,071 |  |  | $ | 30,303 |  |  | $ | 426,772 |  |  | $ | 1,009,079 |
II |  | 1,005 |  |  | 8,967 |  |  | 866 |  |  | 248 |  |  | 3,372 |  |  | 167 |  |  | 8,537 |  |  | 23,162 |
III |  | 945 |  |  | 9,024 |  |  | 5,134 |  |  | 6,136 |  |  | 1,184 |  |  | 4,077 |  |  | 7,353 |  |  | 33,853 |
IV |  | 592 |  |  | 5,325 |  |  | 1,272 |  |  | 425 |  |  | 126 |  |  | 315 |  |  | 9,549 |  |  | 17,604 |
Total |  | $ | 240,859 |  |  | $ | 177,377 |  |  | $ | 100,026 |  |  | $ | 50,610 |  |  | $ | 27,753 |  |  | $ | 34,862 |  |  | $ | 452,211 |  |  | $ | 1,083,698 |
Consumer and other |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Category |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
I |  | $ | 6,102 |  |  | $ | 9,068 |  |  | $ | 3,266 |  |  | $ | 12,588 |  |  | $ | 2,162 |  |  | $ | 3,579 |  |  | $ | 8,043 |  |  | $ | 44,808 |
II |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
III |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
IV |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total |  | $ | 6,102 |  |  | $ | 9,068 |  |  | $ | 3,266 |  |  | $ | 12,588 |  |  | $ | 2,162 |  |  | $ | 3,579 |  |  | $ | 8,043 |  |  | $ | 44,808 |
Total Loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Category |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
I |  | $ | 421,936 |  |  | $ | 414,010 |  |  | $ | 300,702 |  |  | $ | 303,508 |  |  | $ | 133,653 |  |  | $ | 564,713 |  |  | $ | 491,166 |  |  | $ | 2,629,688 |
II |  | 1,005 |  |  | 8,967 |  |  | 866 |  |  | 2,525 |  |  | 19,993 |  |  | 11,982 |  |  | 8,537 |  |  | 53,875 |
III |  | 945 |  |  | 9,024 |  |  | 5,134 |  |  | 6,136 |  |  | 9,893 |  |  | 24,182 |  |  | 7,353 |  |  | 62,667 |
IV |  | 592 |  |  | 5,325 |  |  | 1,272 |  |  | 425 |  |  | 126 |  |  | 339 |  |  | 9,549 |  |  | $ | 17,628 |
Total |  | $ | 424,478 |  |  | $ | 437,326 |  |  | $ | 307,974 |  |  | $ | 312,594 |  |  | $ | 163,665 |  |  | $ | 601,216 |  |  | $ | 516,605 |  |  | $ | 2,763,858 |
Past Due Financing Receivables | The delinquency aging of the loan and lease portfolio by class of receivable was as follows:
|  | September 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 |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 236,058 |  |  | $ | 236,058 |
Non-owner occupied |  | — |  |  | — |  |  | — |  |  | — |  |  | 753,517 |  |  | 753,517 |
Construction |  | — |  |  | — |  |  | — |  |  | — |  |  | 211,828 |  |  | 211,828 |
Multi-family |  | — |  |  | — |  |  | — |  |  | — |  |  | 409,714 |  |  | 409,714 |
1-4 family |  | — |  |  | — |  |  | — |  |  | — |  |  | 24,211 |  |  | 24,211 |
Commercial and industrial |  | 1,874 |  |  | 1,269 |  |  | — |  |  | 3,143 |  |  | 1,062,951 |  |  | 1,066,094 |
Consumer and other |  | — |  |  | — |  |  | — |  |  | — |  |  | 44,808 |  |  | 44,808 |
Total |  | 1,874 |  |  | 1,269 |  |  | — |  |  | 3,143 |  |  | 2,743,087 |  |  | 2,746,230 |
Non-performing loans and leases |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Non-owner occupied |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Construction |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Multi-family |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
1-4 family |  | — |  |  | — |  |  | — |  |  | — |  |  | 24 |  |  | 24 |
Commercial and industrial |  | 408 |  |  | 1,406 |  |  | 5,184 |  |  | 6,998 |  |  | 10,606 |  |  | 17,604 |
Consumer and other |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total |  | 408 |  |  | 1,406 |  |  | 5,184 |  |  | 6,998 |  |  | 10,630 |  |  | 17,628 |
Total loans and leases |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied |  | — |  |  | — |  |  | — |  |  | — |  |  | 236,058 |  |  | 236,058 |
Non-owner occupied |  | — |  |  | — |  |  | — |  |  | — |  |  | 753,517 |  |  | 753,517 |
Construction |  | — |  |  | — |  |  | — |  |  | — |  |  | 211,828 |  |  | 211,828 |
Multi-family |  | — |  |  | — |  |  | — |  |  | — |  |  | 409,714 |  |  | 409,714 |
1-4 family |  | — |  |  | — |  |  | — |  |  | — |  |  | 24,235 |  |  | 24,235 |
Commercial and industrial |  | 2,282 |  |  | 2,675 |  |  | 5,184 |  |  | 10,141 |  |  | 1,073,557 |  |  | 1,083,698 |
Consumer and other |  | — |  |  | — |  |  | — |  |  | — |  |  | 44,808 |  |  | 44,808 |
Total |  | $ | 2,282 |  |  | $ | 2,675 |  |  | $ | 5,184 |  |  | $ | 10,141 |  |  | $ | 2,753,717 |  |  | $ | 2,763,858 |
Percent of portfolio |  | 0.08 | % |  | 0.10 | % |  | 0.19 | % |  | 0.37 | % |  | 99.63 | % |  | 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:
|  | September 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 |  | 24 |  |  | 30 |
Total non-performing commercial real estate |  | 24 |  |  | 30 |
Commercial and industrial |  | 17,604 |  |  | 3,629 |
Consumer and other |  | — |  |  | — |
Total non-performing loans and leases |  | 17,628 |  |  | 3,659 |
Repossessed assets, net |  | 61 |  |  | 95 |
Total non-performing assets |  | $ | 17,689 |  |  | $ | 3,754 |
|  | September 30, 2023 |  | December 31, 2022
Total non-performing loans and leases to gross loans and leases |  | 0.64 | % |  | 0.15 | %
Total non-performing assets to total gross loans and leases plus repossessed assets, net |  | 0.64 |  |  | 0.15 |
Total non-performing assets to total assets |  | 0.52 |  |  | 0.13 |
Allowance for credit losses to gross loans and leases |  | 1.12 |  |  | 0.99 |
Allowance for credit losses to non-performing loans and leases |  | 176.06 |  |  | 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 Nine Months Ended September 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 |  | 24 |  |  | 29 |  |  | — |  |  | 27 |  |  | 3 |  |  | 17 |  |  | (14) |
Commercial and industrial |  | 11,357 |  |  | 11,361 |  |  | — |  |  | 4,263 |  |  | 436 |  |  | 70 |  |  | 366 |
Consumer and other |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total |  | 11,381 |  |  | 11,390 |  |  | — |  |  | 4,290 |  |  | 439 |  |  | 87 |  |  | 352 |
With individual reserve recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Non-owner occupied |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Construction |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Multi-family |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
1-4 family |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Commercial and industrial |  | 6,247 |  |  | 6,247 |  |  | 3,982 |  |  | 3,412 |  |  | 265 |  |  | 21 |  |  | 244 |
Consumer and other |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total |  | 6,247 |  |  | 6,247 |  |  | 3,982 |  |  | 3,412 |  |  | 265 |  |  | 21 |  |  | 244 |
Total: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Non-owner occupied |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Construction |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Multi-family |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
1-4 family |  | 24 |  |  | 29 |  |  | — |  |  | 27 |  |  | 3 |  |  | 17 |  |  | (14) |
Commercial and industrial |  | 17,604 |  |  | 17,608 |  |  | 3,982 |  |  | 7,675 |  |  | 701 |  |  | 91 |  |  | 610 |
Consumer and other |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Grand total |  | $ | 17,628 |  |  | $ | 17,637 |  |  | $ | 3,982 |  |  | $ | 7,702 |  |  | $ | 704 |  |  | $ | 108 |  |  | $ | 596 |
(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 September 30, 2023
|  | Owner Occupied |  | Non-Owner Occupied |  | Construction |  | Multi-Family |  | 1-4 Family |  | Commercial and Industrial |  | Consumer and Other |  | Total
|  | (In Thousands)
Beginning balance |  | $ | 1,721 |  |  | $ | 5,241 |  |  | $ | 2,293 |  |  | $ | 3,426 |  |  | $ | 249 |  |  | $ | 16,223 |  |  | $ | 544 |  |  | $ | 29,697 |
Charge-offs |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (562) |  |  | — |  |  | (562) |
Recoveries |  | 3 |  |  | — |  |  | — |  |  | — |  |  | 9 |  |  | 72 |  |  | — |  |  | 84 |
Net recoveries (charge-offs) |  | 3 |  |  | — |  |  | — |  |  | — |  |  | 9 |  |  | (490) |  |  | — |  |  | (478) |
Provision for credit losses |  | (151) |  |  | 26 |  |  | 68 |  |  | 96 |  |  | (10) |  |  | 1,833 |  |  | (45) |  |  | 1,817 |
Ending balance |  | $ | 1,573 |  |  | $ | 5,267 |  |  | $ | 2,361 |  |  | $ | 3,522 |  |  | $ | 248 |  |  | $ | 17,566 |  |  | $ | 499 |  |  | $ | 31,036 |
Components: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for loan losses |  | 1,556 |  |  | 5,209 |  |  | 1,441 |  |  | 3,512 |  |  | 228 |  |  | 16,946 |  |  | 439 |  |  | 29,331 |
Allowance for unfunded credit commitments |  | 17 |  |  | 58 |  |  | 920 |  |  | 10 |  |  | 20 |  |  | 620 |  |  | 60 |  |  | 1,705 |
Total ACL |  | $ | 1,573 |  |  | $ | 5,267 |  |  | $ | 2,361 |  |  | $ | 3,522 |  |  | $ | 248 |  |  | $ | 17,566 |  |  | $ | 499 |  |  | $ | 31,036 |
|  | As of and for the Three Months Ended September 30, 2022
|  | Commercial Real Estate |  | Commercial and Industrial |  | Consumer and Other |  | Total
|  | (In Thousands)
Beginning balance |  | $ | 13,410 |  |  | $ | 9,866 |  |  | $ | 828 |  |  | $ | 24,104 |
Charge-offs |  | — |  |  | (33) |  |  | (21) |  |  | (54) |
Recoveries |  | 23 |  |  | 50 |  |  | 8 |  |  | 81 |
Net recoveries |  | 23 |  |  | 17 |  |  | (13) |  |  | 27 |
Provision for credit losses |  | (492) |  |  | 629 |  |  | (125) |  |  | 12 |
Ending balance |  | $ | 12,941 |  |  | $ | 10,512 |  |  | $ | 690 |  |  | $ | 24,143 |
|  | As of and for the Nine Months Ended September 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 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (1,057) |  |  | — |  |  | (1,057) |
Recoveries |  | 5 |  |  | 1 |  |  | — |  |  | — |  |  | 30 |  |  | 386 |  |  | 13 |  |  | 435 |
Net recoveries (charge-offs) |  | 5 |  |  | 1 |  |  | — |  |  | — |  |  | 30 |  |  | (671) |  |  | 13 |  |  | (622) |
Provision for credit losses |  | 6 |  |  | 400 |  |  | (81) |  |  | 1,274 |  |  | 56 |  |  | 3,961 |  |  | (6) |  |  | 5,610 |
Ending balance |  | $ | 1,573 |  |  | $ | 5,267 |  |  | $ | 2,361 |  |  | $ | 3,522 |  |  | $ | 248 |  |  | $ | 17,566 |  |  | $ | 499 |  |  | $ | 31,036 |
Components: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for loan losses |  | 1,556 |  |  | 5,209 |  |  | 1,441 |  |  | 3,512 |  |  | 228 |  |  | 16,946 |  |  | 439 |  |  | 29,331 |
Allowance for unfunded credit commitments |  | 17 |  |  | 58 |  |  | 920 |  |  | 10 |  |  | 20 |  |  | 620 |  |  | 60 |  |  | 1,705 |
Total ACL |  | $ | 1,573 |  |  | $ | 5,267 |  |  | $ | 2,361 |  |  | $ | 3,522 |  |  | $ | 248 |  |  | $ | 17,566 |  |  | $ | 499 |  |  | $ | 31,036 |
|  | As of and for the Nine Months Ended September 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 |  | — |  |  | (140) |  |  | (21) |  |  | (161) |
Recoveries |  | 4,259 |  |  | 251 |  |  | 27 |  |  | 4,537 |
Net recoveries (charge-offs) |  | 4,259 |  |  | 111 |  |  | 6 |  |  | 4,376 |
Provision for credit losses |  | (6,428) |  |  | 1,988 |  |  | (129) |  |  | (4,569) |
Ending balance |  | $ | 12,941 |  |  | $ | 10,512 |  |  | $ | 690 |  |  | $ | 24,143 |
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 September 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 |  | $ | 1,556 |  |  | $ | 5,209 |  |  | $ | 1,441 |  |  | $ | 3,512 |  |  | $ | 228 |  |  | $ | 12,964 |  |  | $ | 439 |  |  | $ | 25,349 |
Individually evaluated for credit loss |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3,982 |  |  | — |  |  | 3,982 |
Total |  | $ | 1,556 |  |  | $ | 5,209 |  |  | $ | 1,441 |  |  | $ | 3,512 |  |  | $ | 228 |  |  | $ | 16,946 |  |  | $ | 439 |  |  | $ | 29,331 |
Loans and lease receivables: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Collectively evaluated for credit losses |  | $ | 236,058 |  |  | $ | 753,517 |  |  | $ | 211,828 |  |  | $ | 409,714 |  |  | $ | 24,211 |  |  | $ | 1,066,094 |  |  | $ | 44,808 |  |  | $ | 2,746,230 |
Individually evaluated for credit loss |  | — |  |  | — |  |  | — |  |  | — |  |  | 24 |  |  | 17,604 |  |  | — |  |  | 17,628 |
Total |  | $ | 236,058 |  |  | $ | 753,517 |  |  | $ | 211,828 |  |  | $ | 409,714 |  |  | $ | 24,235 |  |  | $ | 1,083,698 |  |  | $ | 44,808 |  |  | $ | 2,763,858 |
|  | 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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