Loan Portfolio and Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2022

Loan Portfolio and Allowance for Credit Losses [Abstract]

Recorded Investment in Loans by Portfolio Segment

The Following table presents loans by portfolio segment:

	June 30, 2022
(dollars in thousands)	New York and other states*		Florida		Total
Commercial:
Commercial real estate	$	151,978		27,646		179,624
Other		19,134		1,128		20,262
Real estate mortgage - 1 to 4 family:
First mortgages		2,747,210		1,271,168		4,018,378
Home equity loans		45,428		12,851		58,279
Home equity lines of credit		180,720		73,038		253,758
Installment		8,175		2,083		10,258
Total loans, net	$	3,152,645		1,387,914		4,540,559
Less: Allowance for credit losses						45,285
Net loans					$	4,495,274

Prior to the adoption of CECL on January 1, 2022, the Company calculated allowance for loan losses using the incurred losses methodology.

	December 31, 2021
(dollars in thousands)	New York and other states*		Florida		Total
Commercial:
Commercial real estate	$	147,063		21,653		168,716
Other		30,889		595		31,484
Real estate mortgage - 1 to 4 family:
First mortgages		2,723,734		1,212,568		3,936,302
Home equity loans		48,190		13,695		61,885
Home equity lines of credit		175,134		55,842		230,976
Installment		7,368		2,048		9,416
Total loans, net	$	3,132,378		1,306,401		4,438,779
Less: Allowance for loan losses						44,267
Net loans					$	4,394,512

Impact of Adoption in Allowance for Credit Losses by Portfolio Segment

The following table presents the impact of the January 1, 2022 adoption entry in the allowance for credit losses on loans by loan type:

(dollars in thousands)	December 31, 2021 Pre-Adoption Balance		Impact of Adoption			January 1, 2022 Post CECL Adoption
	Total					Total
Commercial:
Commercial real estate	$	3,121		(1,100	)		2,021
Other		14		114			128
Real estate mortgage - 1 to 4 family:
First mortgages		37,249		1,703			38,952
Home equity loans		583		262			845
Home equity lines of credit		2,857		1,752			4,609
Installment		443		(378	)		65
Total Allowance	$	44,267		2,353			46,620

Activity in Allowance For Credit Losses on Loans by Portfolio Segment

Activity in the allowance for credit losses on loans by portfolio segment is summarized as follows:

	For the three months ended June 30, 2022
(dollars in thousands)	Commercial		Real Estate Mortgage- 1 to 4 Family			Installment		Total
Balance at beginning of period	$	2,177		43,931			70		46,178
Loans charged off:
New York and other states*		4		12			14		30
Florida		-		-			-		-
Total loan chargeoffs		4		12			14		30
Recoveries of loans previously charged off:
New York and other states*		4		131			2		137
Florida		-		-			-		-
Total recoveries		4		131			2		137
Net loans (recoveries) charged off		-		(119	)		12		(107	)
(Credit) provision for credit losses		97		(1,170	)		73		(1,000	)
Balance at end of period	$	2,274		42,880			131		45,285

Activity in the allowance for loan losses by portfolio segment as of June 30, 2021 is summarized as follows:

	For the three months ended June 30, 2021
(dollars in thousands)	Commercial		Real Estate Mortgage- 1 to 4 Family			Installment			Total
Balance at beginning of period	$	4,052		45,507			432			49,991
Loans charged off:
New York and other states*		-		20			1			21
Florida		-		-			-			-
Total loan chargeoffs		-		20			1			21
Recoveries of loans previously charged off:
New York and other states*		-		156			28			184
Florida		-		1			-			1
Total recoveries		-		157			28			185
Net loan recoveries		-		(137	)		(27	)		(164	)
(Credit) provision for loan losses		54		(27	)		(27	)		-
Balance at end of period	$	4,106		45,617			432			50,155

* Includes New York, New Jersey, Vermont and Massachusetts.

Activity in the allowance for credit losses on loans by portfolio segment for the six months ended is summarized as follows:

	For the six months ended June 30, 2022
	Commercial			Real Estate Mortgage- 1 to 4 Family			Installment			Total
Balance at beginning of period	$	3,135		$	40,689		$	443		$	44,267
Impact of ASU 2016-13, Current Expected Credit Loss (CECL)		(986	)		3,717			(378	)		2,353
Balance as of January 1, 2022 as adjuste dfor ASU 2016-13		2,149			44,406			65			46,620
Loans charged off:
New York and other states*		40			12			25			77
Florida		-			-			-			-
Total loan chargeoffs		40			12			25			77
Recoveries of loans previously charged off:
New York and other states*		4			228			10			242
Florida		-			-			-			-
Total recoveries		4			228			10			242
Net loans (recoveries) charged off		36			(216	)		15			(165	)
(Credit) provision for credit losses		161			(1,742	)		81			(1,500	)
Balance at end of period	$	2,274			42,880			131			45,285

Activity in the allowance for loan losses by portfolio segment for the six months ended is summarized as follows:

	For the six months ended June 30, 2021
	Commercial			Real Estate Mortgage- 1 to 4 Family			Installment			Total
Balance at beginning of period	$	4,140			44,950			505			49,595
Loans charged off:
New York and other states*		-			106			8			114
Florida		-			-			2			2
Total loan chargeoffs		-			106			10			116
Recoveries of loans previously charged off:
New York and other states*		32			244			49			325
Florida		-			1			-			1
Total recoveries		32			245			49			326
Net loan recoveries		(32	)		(139	)		(39	)		(210	)
(Credit) provision for loan losses		(66	)		528			(112	)		350
Balance at end of period	$	4,106			45,617			432			50,155

* Includes New York, New Jersey, Vermont and Massachusetts.

Allowance For Loan Losses and Recorded Investment in Loans by Portfolio Segment and Based on Impairment Method

The following tables present the balance in the allowance for credit losses on loans by portfolio segment and based on impairment evaluation as of June 30, 2022: :

	June 30, 2022
(dollars in thousands)	Commercial Loans		1-to-4 Family Residential Real Estate		Installment Loans		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	-		-		-		-
Collectively evaluated for impairment		2,274		42,880		131		45,285
Total ending allowance balance	$	2,274		42,880		131		45,285
Loans:
Individually evaluated for impairment	$	319		26,673		21		27,013
Collectively evaluated for impairment		199,567		4,303,742		10,237		4,513,546
Total ending loans balance	$	199,886		4,330,415		10,258		4,540,559

Prior to the adoption of CECL on January 1, 2022, the Company calculated allowance for loan losses using the incurred losses methodology. Activity in the allowance for loan losses by portfolio segment is summarized as follows:

	December 31, 2021
(dollars in thousands)	Commercial Loans		1-to-4 Family Residential Real Estate		Installment Loans		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	-		-		-		-
Collectively evaluated for impairment		3,135		40,689		443		44,267
Total ending allowance balance		3,135		40,689		443		44,267
Loans:
Individually evaluated for impairment	$	232		18,272		-		18,504
Collectively evaluated for impairment		199,968		4,210,891		9,416		4,420,275
Total ending loans balance	$	200,200		4,229,163		9,416		4,438,779

Allowance for Credit Losses on Unfunded Commitments

The Company’s activity in the allowance for credit losses on unfunded commitments were as follows:

(In thousands)	For the three months ended June 30, 2022
Balance at March 31, 2022	$	2,653
Provision for credit losses		509
Balance at June 30, 2022	$	3,162

(In thousands)	For the six months ended June 30, 2022
Balance at January 1, 2022	$	18
Impact of Adopting CECL		2,335
Adjusted Balance at January 1, 2022		2,353
Provision for credit losses		809
Balance at June 30, 2022	$	3,162

Risk Category Loans by Class of Loans

As of June 30, 2022, and based on the most recent analysis performed, the risk category of loans by class of loans, and gross chargeoffs year to date for each loan type by origination year was as follows:

(in thousands)	June 30, 2022
	Term Loans Amortized Cost Basis by Origination Year
	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Revolving Loan Converted to Term		Total
Commercial :
Risk rating
Pass	$	24,830		32,586		24,467		24,684		20,201		43,368		7,682		-	$	177,818
Special Mention		-		-		69		-		251		-		-		-		320
Substandard		-		-		116		-		136		1,234		-		-		1,486
Total Commercial Loans	$	24,830		32,586		24,652		24,684		20,588		44,602		7,682		-	$	179,624
Commercial Loans:
Current-period Gross writeoffs	$	-		-		-		-		-		40		-		-	$	40
	$	-		-		-		-		-		40		-		-	$	40
Commercial Other:
Risk rating
Pass	$	1,325		3,623		3,028		722		823		2,535		7,729		-	$	19,785
Special mention		-		316		-		-		-		-		40		-		356
Substandard		-		23		-		-		-		-		98		-		121
Total Commercial Real Estate Loans	$	1,325		3,962		3,028		722		823		2,535		7,867		-	$	20,262
Other Commercial Loans:
Current-period Gross writeoffs	$	-		-		-		-		-		-		-		-		-
	$	-		-		-		-		-		-		-		-	$	-
Residential First Mortgage:
Risk rating
Performing	$	280,214		965,157		815,540		382,448		268,833		1,289,409		1,114		-	$	4,002,715
Nonperforming		-		173		83		671		773		13,963		-		-		15,663
Total First Mortgage:	$	280,214		965,330		815,623		383,119		269,606		1,303,372		1,114		-	$	4,018,378
Residential First Mortgage Loans:
Current-period Gross writeoffs	$	-		-		-		-		-		-		-		-		-
	$	-		-		-		-		-		-		-		-	$	-
Home Equity Lines:
Risk rating
Performing	$	3,335		10,166		7,031		8,108		5,718		23,751		-		-	$	58,109
Nonperforming		-		-		-		-		-		170		-		-		170
Total Home Equity Lines:	$	3,335		10,166		7,031		8,108		5,718		23,921		-		-	$	58,279
Home Equity Loans:
Current-period Gross writeoffs	$	-		-		-		-		-		-		-		-	$	-
	$	-		-		-		-		-		-		-		-	$	-
Home Equity Lines of Credit:
Risk rating
Performing	$	660		847		414		70		94		19,266		229,789		-	$	251,140
Nonperforming		-		-		-		-		-		2,553		65		-		2,618
Total Home Equity Credit Lines:	$	660		847		414		70		94		21,819		229,854		-	$	253,758
Home Equity Lines of Credit:
Current-period Gross writeoffs	$	-		-		-		-		-		12		-		-		12
	$	-		-		-		-		-		12		-		-	$	12
Installments:
Risk rating
Performing	$	2,503		3,047		1,099		1,200		581		690		1,093		-	$	10,213
Nonperforming		-		-		-		21		-		1		23		-		45
Total Installments	$	2,503		3,047		1,099		1,221		581		691		1,116		-	$	10,258
Installments Loans:
Current-period Gross writeoffs	$	-		13		5		6		-		1		-		-		25
	$	-		13		5		6		-		1		-		-	$	25

As of December 31, 2021 the risk category of loans by class of loans is as follows:

	December 31, 2021
New York and other states:
(dollars in thousands)	Pass		Classified		Total
Commercial:
Commercial real estate	$	145,500		1,563		147,063
Other		30,726		163		30,889
	$	176,226		1,726		177,952

Florida:
(dollars in thousands)	Pass		Classified		Total
Commercial:
Commercial real estate	$	21,113		540		21,653
Other		595		-		595
	$	21,708		540		22,248

Total:
(dollars in thousands)	Pass		Classified		Total
Commercial:
Commercial real estate	$	166,613		2,103		168,716
Other		31,321		163		31,484
	$	197,934		2,266		200,200

* Includes New York, New Jersey and Massachusetts.

Aging of Recorded Investment in Past Due Loans by Loan Class and by Region

The following tables present the aging of the amortized cost in past due loans by loan class and by region as of June 30, 2022:

	June 30, 2022
New York and other states*:
(dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 + Days Past Due		Total 30+ days Past Due		Current		Total Loans
Commercial:
Commercial real estate	$	-		-		123		123		151,855		151,978
Other		35		6		-		41		19,093		19,134
Real estate mortgage - 1 to 4 family:
First mortgages		1,554		1,359		9,183		12,096		2,735,114		2,747,210
Home equity loans		26		50		55		131		45,297		45,428
Home equity lines of credit		264		264		857		1,385		179,335		180,720
Installment		18		8		23		49		8,126		8,175
Total	$	1,897		1,687		10,241		13,825		3,138,820		3,152,645

Florida:
(dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 + Days Past Due		Total 30+ days Past Due		Current		Total Loans
Commercial:
Commercial real estate	$	-		-		-		-		27,646		27,646
Other		-		-		-		-		1,128		1,128
Real estate mortgage - 1 to 4 family:
First mortgages		78		292		1,552		1,922		1,269,246		1,271,168
Home equity loans		43		-		-		43		12,808		12,851
Home equity lines of credit		-		89		-		89		72,949		73,038
Installment		18		46		-		64		2,019		2,083
Total	$	139		427		1,552		2,118		1,385,796		1,387,914

Total:
(dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 + Days Past Due		Total 30+ days Past Due		Current		Total Loans
Commercial:
Commercial real estate	$	-		-		123		123		179,501		179,624
Other		35		6		-		41		20,221		20,262
Real estate mortgage - 1 to 4 family:
First mortgages		1,632		1,651		10,735		14,018		4,004,360		4,018,378
Home equity loans		69		50		55		174		58,105		58,279
Home equity lines of credit		264		353		857		1,474		252,284		253,758
Installment		36		54		23		113		10,145		10,258
Total	$	2,036		2,114		11,793		15,943		4,524,616		4,540,559

* Includes New York, New Jersey, Vermont and Massachusetts.

The following tables present the aging of the recorded investment in past due loans by loan class and by region as of December 31, 2021:

	December 31, 2021
New York and other states*:
(dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 + Days Past Due		Total 30+ days Past Due		Current		Total Loans
Commercial:
Commercial real estate	$	-		233		45		278		146,785		147,063
Other		-		-		-		-		30,889		30,889
Real estate mortgage - 1 to 4 family:
First mortgages		1,303		239		9,867		11,409		2,712,325		2,723,734
Home equity loans		136		-		224		360		47,830		48,190
Home equity lines of credit		355		458		911		1,724		173,410		175,134
Installment		27		5		4		36		7,332		7,368
Total	$	1,821		935		11,051		13,807		3,118,571		3,132,378

Florida:
(dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 + Days Past Due		Total 30+ days Past Due		Current		Total Loans
Commercial:
Commercial real estate	$	-		-		-		-		21,653		21,653
Other		-		-		-		-		595		595
Real estate mortgage - 1 to 4 family:
First mortgages		869		180		1,146		2,195		1,210,373		1,212,568
Home equity loans		-		45		-		45		13,650		13,695
Home equity lines of credit		-		89		-		89		55,753		55,842
Installment		18		-		5		23		2,025		2,048
Total	$	887		314		1,151		2,352		1,304,049		1,306,401

Total:
(dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 + Days Past Due		Total 30+ days Past Due		Current		Total Loans
Commercial:
Commercial real estate	$	-		233		45		278		168,438		168,716
Other		-		-		-		-		31,484		31,484
Real estate mortgage - 1 to 4 family:
First mortgages		2,172		419		11,013		13,604		3,922,698		3,936,302
Home equity loans		136		45		224		405		61,480		61,885
Home equity lines of credit		355		547		911		1,813		229,163		230,976
Installment		45		5		9		59		9,357		9,416
Total	$	2,708		1,249		12,202		16,159		4,422,620		4,438,779

* Includes New York, New Jersey, Vermont and Massachusetts.

Recorded Investment in Non-Accrual Loans by Loan Class

The following table presents the amortized cost basis in non-accrual loans by portfolio segment:

	June 30, 2022
(dollars in thousands)	New York and other states*		Florida		Total
Loans in non-accrual status:
Commercial:
Commercial real estate	$	176		-		176
Other		27		-		27
Real estate mortgage - 1 to 4 family:
First mortgages		13,684		1,979		15,663
Home equity loans		127		43		170
Home equity lines of credit		2,448		170		2,618
Installment		40		5		45
Total non-accrual loans		16,502		2,197		18,699
Restructured real estate mortgages - 1 to 4 family		14		-		14
Total nonperforming loans	$	16,516		2,197		18,713

For homogeneous loan pools, such as residential mortgages, home equity lines of credit, and installment loans, the Company uses payment status to identify the credit risk in these loan portfolios. Payment status is reviewed on a daily basis by the Bank’s collection area and on a monthly basis with respect to determining the adequacy of the allowance for loan losses. The total nonperforming portion of these homogeneous loan pools as of December 31, 2021 is presented in the non-accrual loans table below.

	December 31, 2021
(dollars in thousands)	New York and other states*		Florida		Total
Loans in non-accrual status:
Commercial:
Commercial real estate	$	67		-		67
Other		45		-		45
Real estate mortgage - 1 to 4 family:
First mortgages		13,990		1,797		15,787
Home equity loans		247		45		292
Home equity lines of credit		2,337		174		2,511
Installment		23		14		37
Total non-accrual loans		16,709		2,030		18,739
Restructured real estate mortgages - 1 to 4 family		17		-		17
Total nonperforming loans	$	16,726		2,030		18,756

* Includes New York, New Jersey, Vermont and Massachusetts.

Loans on Non-Accrual Status and Past Due More than 90 Days

The following table presents the amortized cost basis of loans on non-accrual status and loans past due over 89 days still accruing:

	June 30, 2022
(dollars in thousands)	Non-accrual With No Allowance for Credit Loss		Non-accrual With Allowance for Credit Loss		Loans Past Due Over 89 Days Still Accruing
Commercial:
Commercial real estate	$	176	$	-	$	-
Other		-		27		-
Real estate mortgage - 1 to 4 family:
First mortgages		14,477		1,186		-
Home equity loans		152		18		-
Home equity lines of credit		2,497		121		-
Installment		21		23		-
Total loans, net	$	17,324	$	1,375	$	-

Amortized Cost of Collateral-dependent Loans by Class

	Type of Collateral
(dollars in thousands)
	Real Estate		Investment Securities/Cash		Other
Commercial:
Commercial real estate	$	292		-		-
Other		27		-		-
Real estate mortgage - 1 to 4 family:				-		-
First mortgages		22,902		-		-
Home equity loans		272		-		-
Home equity lines of credit		3,499		-		-
Installment		21		-		-
Total Allowance	$	27,013		-		-

Modified Loans by Class that were Determined to be TDR's

The following table presents, by class, loans that were modified as TDR’s:

	Three months ended June 30, 2022						Three months ended June 30, 2021
New York and other states* (dollars in thousands)	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial:
Commercial real estate		-	$	-		-		-	$	-		-
Real estate mortgage - 1 to 4 family:
First mortgages		1		73		73		2		368		368
Home equity loans		-		-		-		1		2		2
Home equity lines of credit		-		-		-		2		59		59
Total		1	$	73		73		5	$	429		429

Florida: (dollars in thousands)	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial:
Commercial real estate		-	$	-		-		-	$	-		-
Real estate mortgage - 1 to 4 family:
First mortgages		-		-		-		1		78		78
Home equity loans		-		-		-		-		-		-
Home equity lines of credit		-		-		-		-		-		-
Total		-	$	-		-		1	$	78		78

* Includes New York, New Jersey, Vermont and Massachusetts.

	Six months ended June 30, 2022						Six months ended June 30, 2021
New York and other states*: (dollars in thousands)	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial:
Commercial real estate		-	$	-		-		-	$	-		-
Real estate mortgage - 1 to 4 family:
First mortgages		4		443		443		2		368		368
Home equity loans		-		-		-		1		2		2
Home equity lines of credit		-		-		-		2		59		59
Total		4	$	443		443		5	$	429		429

Florida: (dollars in thousands)	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial:
Commercial real estate		-	$	-		-		-	$	-		-
Real estate mortgage - 1 to 4 family:
First mortgages		-		-		-		1		78		78
Home equity loans		-		-		-		-		-		-
Home equity lines of credit		-		-		-		-		-		-
Total		-	$	-		-		1	$	78		78

* Includes New York, New Jersey, Vermont and Massachusetts.

Impaired Loans by Loan Class

The following table presents impaired loans by loan class as of December 31, 2021:

	December 31, 2021
New York and other states*: (dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		YTD Avg Recorded Investment
Commercial:
Commercial real estate	$	187		279		-		1,154
Other		45		45		-		107
Real estate mortgage - 1 to 4 family:
First mortgages		13,687		13,875		-		14,072
Home equity loans		161		161		-		235
Home equity lines of credit		1,852		1,939		-		2,256
Total	$	15,932		16,299		-		17,824

Florida: (dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		YTD Avg Recorded Investment
Commercial:
Commercial real estate	$	-		-		-		105
Other		-		-		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		2,368		2,368		-		2,562
Home equity loans		-		-		-		16
Home equity lines of credit		204		204		-		246
Total	$	2,572		2,572		-		2,929

Total: (dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		YTD Avg Recorded Investment
Commercial:
Commercial real estate	$	187		279		-		1,259
Other		45		45		-		107
Real estate mortgage - 1 to 4 family:
First mortgages		16,055		16,243		-		16,634
Home equity loans		161		161		-		251
Home equity lines of credit		2,056		2,143		-		2,502
Total	$	18,504		18,871		-		20,753

* Includes New York, New Jersey, Vermont and Massachusetts.