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Allowance For Credit Losses (Tables)

9 Months Ended

Sep. 30, 2023

Financing Receivable, Allowance for Credit Loss

The following table summarizes the activity in the allowance for credit losses, by portfolio loan classification, for the nine months ended September 30, 2023 and 2022 (in thousands). The allocation of a portion of the allowance in one portfolio segment does not preclude its availability to absorb losses in other portfolio segments.


	Beginning Balance		Impact of Adopting ASU 2022-02		PCD Loan Reserves		Charge-offs		Recoveries		Provision for (recovery of) credit losses		Ending Balance
Nine months ended September 30, 2023
Commercial and industrial	$	3,568	12		—		(69)		$	766	$	371	$	4,648

1-4 Family	566		(1)		—		(335)		42		390		662
Hotels	2,332		—		—		(40)		—		(72)		2,220
Multi-family	380		—		500		—		—		135		1,015
Non Residential Non-Owner Occupied	2,019		—		1,536		—		162		1,081		4,798
Non Residential Owner Occupied	1,315		—		775		—		56		318		2,464
Commercial real estate	6,612		(1)		2,811		(375)		260		1,852		11,159

Residential real estate	5,427		(138)		—		(141)		43		200		5,391
Home equity	290		(46)		—		(379)		34		533		432
Consumer	110		(2)		—		(181)		78		320		325
DDA overdrafts	1,101		—		—		(1,229)		1,034		267		1,173
	$	17,108	$	(175)	$	2,811	$	(2,374)	$	2,215	$	3,543	$	23,128

Nine months ended September 30, 2022
Commercial and industrial	$	3,480	—		—		(445)		$	240	$	137	$	3,412

1-4 Family	598		—		—		(24)		40		(66)		548
Hotels	2,426		—		—		—		—		111		2,537
Multi-family	483		—		—		—		—		(59)		424
Non Residential Non-Owner Occupied	2,319		—		—		—		47		(236)		2,130
Non Residential Owner Occupied	1,485		—		—		—		—		(113)		1,372
Commercial real estate	7,311		—		—		(24)		87		(363)		7,011

Residential real estate	5,716		—		—		(199)		50		(513)		5,054
Home equity	517		—		—		(90)		22		(101)		348
Consumer	106		—		—		(48)		76		(37)		97
DDA Overdrafts	1,036		—		—		(1,951)		1,153		851		1,089
	$	18,166	$	—	$	—	$	(2,757)	$	1,628	$	(26)	$	17,011


	Beginning Balance		Impact of Adopting ASU 2022-02		PCD Loan Reserves		Charge-offs		Recoveries		Provision for (recovery of) credit losses		Ending Balance
Three months ended September 30, 2023
Commercial and industrial	$	4,330	—		—		—		$	597	$	(279)	$	4,648

1-4 Family	598		—		—		(255)		12		307		662
Hotels	2,133		—		—		—		—		87		2,220
Multi-family	1,009		—		—		—		—		6		1,015
Non Residential Non-Owner Occupied	4,786		—		—		—		6		6		4,798
Non Residential Owner Occupied	2,378		—		—		—		56		30		2,464
Commercial real estate	10,904		—		—		(255)		74		436		11,159

Residential real estate	5,573		—		—		(89)		28		(121)		5,391
Home equity	408		—		—		(112)		18		118		432
Consumer	334		—		—		(10)		27		(26)		325
DDA overdrafts	1,202		—		—		(422)		321		72		1,173
	$	22,751	$	—	$	—	$	(888)	$	1,065	$	200	$	23,128

Three months ended September 30, 2022
Commercial and industrial	$	3,519	—		—		(411)		$	149	$	155	$	3,412

1-4 Family	574		—		—		—		6		(32)		548
Hotels	2,508		—		—		—		—		29		2,537
Multi-family	460		—		—		—		—		(36)		424
Non Residential Non-Owner Occupied	2,096		—		—		—		3		31		2,130
Non Residential Owner Occupied	1,395		—		—		—		—		(23)		1,372
Commercial real estate	7,033		—		—		—		9		(31)		7,011

Residential real estate	4,994		—		—		(93)		1		152		5,054
Home equity	338		—		—		(71)		2		79		348
Consumer	78		—		—		(16)		29		6		97
DDA Overdrafts	1,053		—		—		(716)		383		369		1,089
	$	17,015	$	—	$	—	$	(1,307)	$	573	$	730	$	17,011

Financing Receivable, Nonaccrual

The following table presents the amortized cost basis of loans on non-accrual status and loans past due over 90 days still accruing as of September 30, 2023 (in thousands):


	Non-accrual With No		Non-accrual With		Loans Past Due
	Allowance for		Allowance for		Over 90 Days
	Credit Losses		Credit Losses		Still Accruing
Commercial & Industrial	$	—	$	716	$	—

1-4 Family	—		521		—
Hotels	—		—		—
Multi-family	—		—		—
Non Residential Non-Owner Occupied	—		642		—
Non Residential Owner Occupied	—		192		—
Commercial Real Estate	—		1,355		—

Residential Real Estate	—		2,839		264
Home Equity	—		75		—
Consumer	—		1		5
Total	$	—	$	4,986	$	269

The following table presents the amortized cost basis of loans on non-accrual status and loans past due over 90 days still accruing as of December 31, 2022 (in thousands):


	Non-accrual With No		Non-accrual With		Loans Past Due
	Allowance for		Allowance for		Over 90 Days
	Credit Losses		Credit Losses		Still Accruing
Commercial & Industrial	$	—	$	1,015	$	—

1-4 Family	—		937		—
Hotels	—		115		—
Multi-family	—		—		—
Non Residential Non-Owner Occupied	—		816		—
Non Residential Owner Occupied	—		298		—
Commercial Real Estate	—		2,166		—

Residential Real Estate	228		1,741		164
Home Equity	—		55		—
Consumer	—		—		23
Total	$	228	$	4,977	$	187

Financing Receivable, Past Due

The following tables present the aging of the amortized cost basis in past-due loans as of September 30, 2023 and December 31, 2022 by class of loan (in thousands):


	September 30, 2023
	30-59		60-89		90+		Total		Current		Non-		Total
	Past Due		Past Due		Past Due		Past Due		Loans		accrual		Loans
Commercial and industrial	$	568	$	—	$	—	$	568	$	423,363	$	716	$	424,647

1-4 Family	56		—		—		56		134,649		521		135,226
Hotels	—		—		—		—		321,236		—		321,236
Multi-family	—		—		—		—		192,329		—		192,329
Non Residential Non-Owner Occupied	75		—		—		75		712,636		642		713,353
Non Residential Owner Occupied	1,347		—		—		1,347		221,005		192		222,544
Commercial real estate	1,478		—		—		1,478		1,581,855		1,355		1,584,688

Residential real estate	5,189		794		264		6,247		1,759,272		2,839		1,768,358
Home Equity	1,091		187		—		1,278		158,277		75		159,630
Consumer	79		—		5		84		65,501		1		65,586
Overdrafts	394		4		—		398		4,175		—		4,573
Total	$	8,799	$	985	$	269	$	10,053	$	3,992,443	$	4,986	$	4,007,482


	December 31, 2022
	30-59		60-89		90+		Total		Current		Non-		Total
	Past Due		Past Due		Past Due		Past Due		Loans		accrual		Loans
Commercial and industrial	$	201	$	33	$	—	$	234	$	372,641	$	1,015	$	373,890

1-4 Family	17		—		—		17		115,238		937		116,192
Hotels	—		—		—		—		340,289		115		340,404
Multi-family	—		—		—		—		174,786		—		174,786
Non Residential Non-Owner Occupied	—		—		—		—		585,148		816		585,964
Non Residential Owner Occupied	505		188		—		693		173,970		298		174,961
Commercial real estate	522		188		—		710		1,389,431		2,166		1,392,307

Residential real estate	6,843		84		164		7,091		1,684,463		1,969		1,693,523
Home Equity	622		28		—		650		133,612		55		134,317
Consumer	52		25		23		100		48,706		—		48,806
Overdrafts	386		5		—		391		3,024		—		3,415
Total	$	8,626	$	363	$	187	$	9,176	$	3,631,877	$	5,205	$	3,646,258

Financing Receivable, Credit Quality Indicators

Based on the most recent analysis performed, the risk category of loans by class of loans at September 30, 2023 and December 31, 2022 is as follows (in thousands), with the loans acquired from Citizens categorized by their origination date:


													Revolving
	Term Loans												Loans
	Amortized Cost Basis by Origination Year and Risk Level												Amortized
September 30, 2023	2023		2022		2021		2020		2019		Prior		Cost Basis		Total
Commercial and industrial
Pass	$	50,307	$	52,028	$	86,967	$	54,217	$	23,017	$	18,712	$	103,994	$	389,242
Special mention	—		34		—		2,650		—		—		25		2,709
Substandard	433		2,859		856		830		954		1,614		25,150		32,696
Total	$	50,740	$	54,921	$	87,823	$	57,697	$	23,971	$	20,326	$	129,169	$	424,647
YTD Gross Charge-offs	$	—	$	—	$	33	$	—	$	—	$	—	$	36	$	69



													Revolving
	Term Loans												Loans
	Amortized Cost Basis by Origination Year and Risk Level												Amortized
December 31, 2022	2022		2021		2020		2019		2018		Prior		Cost Basis		Total
Commercial and industrial
Pass	$	51,268	$	91,097	$	60,251	$	26,356	$	19,497	$	6,917	$	109,645	$	365,031
Special mention	—		—		392		9		—		19		3,245		3,665
Substandard	955		203		1,025		1,175		224		1,533		79		5,194
Total	$	52,223	$	91,300	$	61,668	$	27,540	$	19,721	$	8,469	$	112,969	$	373,890



													Revolving
	Term Loans												Loans
	Amortized Cost Basis by Origination Year and Risk Level												Amortized
September 30, 2023	2023		2022		2021		2020		2019		Prior		Cost Basis		Total
Commercial real estate -
1-4 Family
Pass	$	25,435	$	34,818	$	18,378	$	11,638	$	7,915	$	23,900	$	10,432	$	132,516
Special mention	—		220		56		110		—		763		—		1,149
Substandard	—		79		—		254		43		1,185		—		1,561
Total	$	25,435	$	35,117	$	18,434	$	12,002	$	7,958	$	25,848	$	10,432	$	135,226
YTD Gross Charge-offs	$	—	$	—	$	—	$	—	$	—	$	335	$	—	$	335



													Revolving
	Term Loans												Loans
	Amortized Cost Basis by Origination Year and Risk Level												Amortized
December 31, 2022	2022		2021		2020		2019		2018		Prior		Cost Basis		Total
Commercial real estate -
1-4 Family
Pass	$	31,331	$	21,640	$	12,565	$	8,609	$	4,826	$	22,949	$	11,107	$	113,027
Special mention	228		—		115		—		—		836		—		1,179
Substandard	83		—		264		56		—		1,583		—		1,986
Total	$	31,642	$	21,640	$	12,944	$	8,665	$	4,826	$	25,368	$	11,107	$	116,192


													Revolving
	Term Loans												Loans
	Amortized Cost Basis by Origination Year and Risk Level												Amortized
September 30, 2023	2023		2022		2021		2020		2019		Prior		Cost Basis		Total
Commercial real estate -
Hotels
Pass	$	8,475	$	83,106	$	34,130	$	3,447	$	58,900	$	102,778	$	307	$	291,143
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		4,047		23,764		2,282		—		30,093
Total	$	8,475	$	83,106	$	34,130	$	7,494	$	82,664	$	105,060	$	307	$	321,236
YTD Gross Charge-offs	$	—	$	—	$	—	$	—	$	—	$	40	$	—	$	40



													Revolving
	Term Loans												Loans
	Amortized Cost Basis by Origination Year and Risk Level												Amortized
December 31, 2022	2022		2021		2020		2019		2018		Prior		Cost Basis		Total
Commercial real estate -
Hotels
Pass	$	85,590	$	35,849	$	12,275	$	60,429	$	14,921	$	90,686	$	323	$	300,073
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		3,593		24,229		—		12,509		—		40,331
Total	$	85,590	$	35,849	$	15,868	$	84,658	$	14,921	$	103,195	$	323	$	340,404



													Revolving
	Term Loans												Loans
	Amortized Cost Basis by Origination Year and Risk Level												Amortized
September 30, 2023	2023		2022		2021		2020		2019		Prior		Cost Basis		Total
Commercial real estate -
Multi-family
Pass	$	5,475	$	21,133	$	28,357	$	64,657	$	39,475	$	32,128	$	1,104	$	192,329
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Total	$	5,475	$	21,133	$	28,357	$	64,657	$	39,475	$	32,128	$	1,104	$	192,329
YTD Gross Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—



													Revolving
	Term Loans												Loans
	Amortized Cost Basis by Origination Year and Risk Level												Amortized
December 31, 2022	2022		2021		2020		2019		2018		Prior		Cost Basis		Total
Commercial real estate -
Multi-family
Pass	$	13,761	$	21,312	$	65,542	$	37,698	$	2,189	$	33,560	$	724	$	174,786
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Total	$	13,761	$	21,312	$	65,542	$	37,698	$	2,189	$	33,560	$	724	$	174,786






													Revolving
	Term Loans												Loans
	Amortized Cost Basis by Origination Year and Risk Level												Amortized
September 30, 2023	2023		2022		2021		2020		2019		Prior		Cost Basis		Total
Commercial real estate -
Non Residential Non-Owner Occupied
Pass	$	91,355	$	144,136	$	115,332	$	70,346	$	69,655	$	180,325	$	8,308	$	679,457
Special mention	—		—		102		1,804		168		24,919		240		27,233
Substandard	—		—		574		2,423		1,393		2,273		—		6,663
Total	$	91,355	$	144,136	$	116,008	$	74,573	$	71,216	$	207,517	$	8,548	$	713,353
YTD Gross Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—



													Revolving
	Term Loans												Loans
	Amortized Cost Basis by Origination Year and Risk Level												Amortized
December 31, 2022	2022		2021		2020		2019		2018		Prior		Cost Basis		Total
Commercial real estate -
Non Residential Non-Owner Occupied
Pass	$	110,501	$	108,290	$	89,943	$	68,027	$	87,413	$	113,287	$	2,781	$	580,242
Special mention	—		110		170		176		—		—		—		456
Substandard	—		601		—		1,330		2,089		1,244		2		5,266
Total	$	110,501	$	109,001	$	90,113	$	69,533	$	89,502	$	114,531	$	2,783	$	585,964



													Revolving
	Term Loans												Loans
	Amortized Cost Basis by Origination Year and Risk Level												Amortized
September 30, 2023	2023		2022		2021		2020		2019		Prior		Cost Basis		Total
Commercial real estate -
Non Residential Owner Occupied
Pass	$	24,711	$	31,142	$	43,634	$	17,109	$	23,094	$	56,245	$	3,568	$	199,503
Special mention	—		—		—		—		2,056		446		—		2,502
Substandard	4,053		917		3,067		1,222		129		10,787		364		20,539
Total	$	28,764	$	32,059	$	46,701	$	18,331	$	25,279	$	67,478	$	3,932	$	222,544
YTD Gross Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—



													Revolving
	Term Loans												Loans
	Amortized Cost Basis by Origination Year and Risk Level												Amortized
December 31, 2022	2022		2021		2020		2019		2018		Prior		Cost Basis		Total
Commercial real estate -
Non Residential Owner Occupied
Pass	$	21,782	$	36,186	$	17,216	$	22,274	$	17,622	$	39,861	$	3,238	$	158,179
Special mention	—		—		—		329		—		493		113		935
Substandard	943		193		110		2,479		772		10,350		1,000		15,847
Total	$	22,725	$	36,379	$	17,326	$	25,082	$	18,394	$	50,704	$	4,351	$	174,961


													Revolving
	Term Loans												Loans
	Amortized Cost Basis by Origination Year and Risk Level												Amortized
September 30, 2023	2023		2022		2021		2020		2019		Prior		Cost Basis		Total
Commercial real estate -
Total
Pass	$	155,451	$	314,335	$	239,831	$	167,197	$	199,039	$	395,376	$	23,719	$	1,494,948
Special mention	—		220		158		1,914		2,224		26,128		240		30,884
Substandard	4,053		996		3,641		7,946		25,329		16,527		364		58,856
Total	$	159,504	$	315,551	$	243,630	$	177,057	$	226,592	$	438,031	$	24,323	$	1,584,688
YTD Gross Charge-offs	$	—	$	—	$	—	$	—	$	—	$	375	$	—	$	375


													Revolving
	Term Loans												Loans
	Amortized Cost Basis by Origination Year and Risk Level												Amortized
December 31, 2022	2022		2021		2020		2019		2018		Prior		Cost Basis		Total
Commercial real estate -
Total
Pass	$	262,965	$	223,277	$	197,541	$	197,037	$	126,971	$	300,343	$	18,173	$	1,326,307
Special mention	228		110		285		505		—		1,329		113		2,570
Substandard	1,026		794		3,967		28,094		2,861		25,686		1,002		63,430
Total	$	264,219	$	224,181	$	201,793	$	225,636	$	129,832	$	327,358	$	19,288	$	1,392,307


													Revolving
	Term Loans												Loans
	Amortized Cost Basis by Origination Year and Risk Level												Amortized
September 30, 2023	2023		2022		2021		2020		2019		Prior		Cost Basis		Total
Residential real estate
Performing	$	178,449	$	401,566	$	319,469	$	255,721	$	112,880	$	422,554	$	74,977	$	1,765,616
Non-performing	—		68		476		92		617		1,000		489		2,742
Total	$	178,449	$	401,634	$	319,945	$	255,813	$	113,497	$	423,554	$	75,466	$	1,768,358
YTD Gross Charge-offs	$	—	$	—	$	—	$	—	$	31	$	104	$	6	$	141

													Revolving
	Term Loans												Loans
	Amortized Cost Basis by Origination Year and Risk Level												Amortized
December 31, 2022	2022		2021		2020		2019		2018		Prior		Cost Basis		Total
Residential real estate
Performing	$	405,059	$	336,462	$	270,197	$	122,559	$	86,317	$	382,652	$	88,308	$	1,691,554
Non-performing	—		207		—		755		79		738		190		1,969
Total	$	405,059	$	336,669	$	270,197	$	123,314	$	86,396	$	383,390	$	88,498	$	1,693,523



													Revolving
	Term Loans												Loans
	Amortized Cost Basis by Origination Year and Risk Level												Amortized
September 30, 2023	2023		2022		2021		2020		2019		Prior		Cost Basis		Total
Home equity
Performing	$	21,183	$	14,687	$	6,397	$	4,074	$	2,592	$	4,900	$	105,624	$	159,457
Non-performing	—		—		—		—		—		—		173		173
Total	$	21,183	$	14,687	$	6,397	$	4,074	$	2,592	$	4,900	$	105,797	$	159,630
YTD Gross Charge-offs	$	—	$	95	$	—	$	—	$	—	$	122	$	162	$	379



													Revolving
	Term Loans												Loans
	Amortized Cost Basis by Origination Year and Risk Level												Amortized
December 31, 2022	2022		2021		2020		2019		2018		Prior		Cost Basis		Total
Home equity
Performing	$	16,670	$	7,394	$	5,000	$	3,035	$	1,823	$	5,116	$	95,224	$	134,262
Non-performing	—		—		—		—		—		—		55		55
Total	$	16,670	$	7,394	$	5,000	$	3,035	$	1,823	$	5,116	$	95,279	$	134,317



													Revolving
	Term Loans												Loans
	Amortized Cost Basis by Origination Year and Risk Level												Amortized
September 30, 2023	2023		2022		2021		2020		2019		Prior		Cost Basis		Total
Consumer
Performing	$	29,234	$	20,593	$	5,287	$	3,666	$	2,711	$	2,035	$	2,060	$	65,586
Non-performing	—		—		—		—		—		—		—		—
Total	$	29,234	$	20,593	$	5,287	$	3,666	$	2,711	$	2,035	$	2,060	$	65,586
YTD Gross Charge-offs	$	—	$	—	$	73	$	—	$	6	$	96	$	6	$	181



													Revolving
	Term Loans												Loans
	Amortized Cost Basis by Origination Year and Risk Level												Amortized
December 31, 2022	2022		2021		2020		2019		2018		Prior		Cost Basis		Total
Consumer
Performing	$	25,296	$	7,954	$	5,482	$	4,299	$	2,246	$	2,064	$	1,465	$	48,806
Non-performing	—		—		—		—		—		—		—		—
Total	$	25,296	$	7,954	$	5,482	$	4,299	$	2,246	$	2,064	$	1,465	$	48,806