
	June 30,		December 31,
	2022		2021
Commercial and industrial (1)	$	1,479,424	$	1,290,565
Construction	1,575,331		1,327,659
Residential real estate:
1-to-4 family mortgage	1,457,452		1,270,467
Residential line of credit	425,485		383,039
Multi-family mortgage	391,970		326,551
Commercial real estate:
Owner occupied	1,053,872		951,582
Non-owner occupied	1,885,122		1,730,165
Consumer and other	355,681		324,634
Gross loans	8,624,337		7,604,662
Less: Allowance for credit losses	(126,272)		(125,559)
Net loans	$	8,498,065	$	7,479,103

As of June 30, 2022 and December 31, 2021, $980,762 and $1,136,294, respectively, of qualifying residential mortgage loans (including loans held for sale) and $1,570,759 and $1,581,673, respectively, of qualifying commercial mortgage loans were pledged to the Federal Home Loan Bank of Cincinnati securing advances against the Bank’s line of credit. Additionally, as of June 30, 2022 and December 31, 2021, qualifying loans of $2,892,283 and $2,440,097, respectively, were pledged to the Federal Reserve Bank under the Borrower-in-Custody program.

The Company calculates its expected credit loss using a lifetime loss rate methodology. The Company utilizes probability-weighted forecasts, which consider multiple macroeconomic variables from a third-party vendor that are applicable to the type of loan. Each of the Company's loss rate models incorporate forward-looking macroeconomic projections throughout the reasonable and supportable forecast period and the subsequent historical reversion at the macroeconomic variable input level. In order to estimate the life of a loan, the contractual term of the loan is adjusted for estimated prepayments based on market information and the Company’s prepayment history.

The Company considers the need to qualitatively adjust its modeled quantitative expected credit loss estimate for information not already captured in the model loss estimation process. These qualitative factor adjustments may increase or decrease the Company’s estimate of expected credit losses. The Company reviews the qualitative adjustments so as to validate that information that has already been considered and included in the modeled quantitative loss estimation process is not also included in the qualitative adjustment. The Company considers the qualitative factors that are relevant to the institution as of the reporting date, which may include, but are not limited to: levels of and trends in delinquencies and performance of loans; levels of and trends in write-offs and recoveries collected; trends in volume and terms of loans; effects of any changes in reasonable and supportable economic forecasts; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures, and practices; experience, ability, and depth of lending management and expertise; available relevant information sources that contradict the Company’s own forecast; effects of changes in prepayment expectations or other factors affecting assessments of loan contractual terms; industry conditions; and effects of changes in credit concentrations.

The quantitative models require loan data and macroeconomic variables based on the inherent credit risks in each portfolio to more accurately measure the credit risks associated with each. Each of the quantitative models pools loans with similar risk characteristics and collectively assesses the lifetime loss rate for each pool to estimate its expected credit loss.

When a loan no longer shares similar risk characteristics with other loans in any given pool, the loan is individually assessed. The Company has determined the following circumstances in which a loan may require an individual evaluation: collateral dependent loans; loans for which foreclosure is probable; and loans with other unique risk characteristics. A loan is deemed collateral dependent when 1) the borrower is experiencing financial difficulty and 2) the repayment is expected to be primarily through sale or operation of the collateral. The allowance for credit losses for collateral dependent loans as well as loans where foreclosure is probable is calculated as the amount for which the loan’s amortized cost basis exceeds fair value. Fair value is determined based on appraisals performed by qualified appraisers and reviewed by qualified personnel. In cases where repayment is to be provided substantially through the sale of collateral, the Company reduces the fair value by the estimated costs to sell. Loans experiencing financial difficulty for which a concession has not yet been provided may be identified as reasonably expected TDRs.

The Company performed qualitative evaluations within the Company's established qualitative framework, weighting the impact of the current economic outlook (including uncertainty due to inflation, negative economic forecasts, predicted Federal Reserve rate increases) status of federal government stimulus programs, and other considerations. The increase in estimated required reserve during the three and six months ended June 30, 2022 was a result of increased loan growth and a tightening monetary policy environment both of which were incorporated into the Company's reasonable and supportable forecasts when compared to June 30, 2022 and December 31, 2021. Qualitative adjustments included projected slower GDP growth over the next two to three fiscal years, expected elevated unemployment levels, and expected interest rate increases in the short-term from Federal Reserve. The qualitative evaluations above include weighted projections that the economy may be nearing a recession. These considerations were slightly offset as the Company removed the impact of COVID troubled industries from its calculation.


	Commercial and industrial		Construction		1-to-4 family residential mortgage		Residential line of credit		Multi-family residential mortgage		Commercial real estate owner occupied		Commercial real estate non-owner occupied		Consumer and other		Total
Three months ended June 30, 2022
Beginning balance - March 31, 2022	$	12,699	$	31,782	$	21,024	$	6,545	$	6,398	$	8,416	$	21,290	$	11,895	$	120,049
Provision for credit losses	(783)		6,590		383		314		105		(1,102)		1,246		1,428		8,181
Recoveries of loans previously charged-off	26		11		14		16		—		15		—		348		430
Loans charged off	(1,751)		—		(23)		—		—		—		—		(614)		(2,388)


Ending balance - June 30, 2022	$	10,191	$	38,383	$	21,398	$	6,875	$	6,503	$	7,329	$	22,536	$	13,057	$	126,272
Six Months Ended June 30, 2022
Beginning balance - December 31, 2021	$	15,751	$	28,576	$	19,104	$	5,903	$	6,976	$	12,593	$	25,768	$	10,888	$	125,559


Provision for credit losses	(4,789)		9,796		2,291		955		(473)		(5,289)		(3,232)		2,793		2,052
Recoveries of loans previously charged-off	984		11		26		17		—		25		—		565		1,628
Loans charged off	(1,755)		—		(23)		—		—		—		—		(1,189)		(2,967)


Ending balance - June 30, 2022	$	10,191	$	38,383	$	21,398	$	6,875	$	6,503	$	7,329	$	22,536	$	13,057	$	126,272


	Commercial and industrial		Construction		1-to-4 family residential mortgage		Residential line of credit		Multi-family residential mortgage		Commercial real estate owner occupied		Commercial real estate non-owner occupied		Consumer and other		Total
Three Months Ended June 30, 2021
Beginning balance - March 31, 2021	$	14,643	$	38,622	$	19,572	$	9,268	$	11,657	$	3,609	$	50,179	$	10,404	$	157,954
Provision for loan losses	(579)		(5,784)		75		(2,558)		1,818		972		(7,323)		494		(12,885)
Recoveries of loans previously charged-off	87		—		41		9		—		126		—		190		453
Loans charged off	(360)		—		(16)		(3)		—		—		—		(480)		(859)

Ending balance - June 30, 2021	$	13,791	$	32,838	$	19,672	$	6,716	$	13,475	$	4,707	$	42,856	$	10,608	$	144,663
Six Months Ended June 30, 2021
Beginning balance - December 31, 2020	$	14,748	$	58,477	$	19,220	$	10,534	$	7,174	$	4,849	$	44,147	$	11,240	$	170,389


Provision for credit losses	(536)		(25,610)		536		(3,815)		6,301		(281)		(1,291)		179		(24,517)
Recoveries of loans previously charged-off	216		—		65		15		—		139		—		385		820
Loans charged off	(637)		(29)		(149)		(18)		—		—		—		(1,196)		(2,029)


Ending balance - June 30, 2021	$	13,791	$	32,838	$	19,672	$	6,716	$	13,475	$	4,707	$	42,856	$	10,608	$	144,663

The Company categorizes commercial loan types into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans that share similar risk characteristics collectively. Loans that do not share similar risk characteristics are evaluated individually.


			Pass.			Loans rated Pass include those that are adequately collateralized performing loans which management believes do not have conditions that have occurred or may occur that would result in the loan being downgraded into an inferior category. The Pass category also includes commercial loans rated as Watch, which include those that management believes have conditions that have occurred, or may occur, which could result in the loan being downgraded to an inferior category.




			Special Mention.			Loans rated Special Mention are those that have potential weakness that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the institution’s credit position at some future date. Management does not believe there will be a loss of principal or interest. These loans require intensive servicing and may possess more than normal credit risk.




			Classified.			Loans included in the Classified category include loans rated as Substandard and Doubtful. Loans rated as Substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Substandard loans have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Also included in this category are loans classified as Doubtful, which have all the weaknesses inherent in those classified as Substandard, with the added characteristic that the weakness or weaknesses make collection or liquidation in full, based on currently existing facts, conditions, and values, highly questionable and improbable.

During the six months ended June 30, 2022, the Company revised the presentation of the below credit quality vintage tables without change to accounting or credit policies. The updated presentation disaggregates between commercial and consumer loan types with consumer loans reported as either performing or nonperforming based on their delinquency and accrual status. As such, the tables presented below as of December 31, 2021 have been revised to align with current period presentation.

The following tables present the credit quality of our commercial loan portfolio by year of origination as of June 30, 2022 and December 31, 2021. Revolving loans are presented separately. Management considers the guidance in ASC 310-20 when determining whether a modification, extension, or renewal constitutes a current period origination. Generally, current period renewals of credit are reunderwritten at the point of renewal and considered current period originations for the purposes of the tables below.


As of June 30, 2022
	Commercial Term Loans
	Amortized Cost Basis by Origination Year
	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Total
Commercial and industrial
Pass	$	172,954	$	258,774	$	81,540	$	108,279	$	45,779	$	69,018	$	713,271	$	1,449,615
Special Mention	27		48		—		949		617		1		2,892		4,534
Classified	—		957		2,197		450		2,808		9,375		9,488		25,275

Total	172,981		259,779		83,737		109,678		49,204		78,394		725,651		1,479,424


Construction
Pass	363,575		655,142		244,421		85,768		20,128		51,482		150,348		1,570,864
Special Mention	332		1,348		9		—		—		2,587		—		4,276
Classified	—		—		—		—		—		—		191		191

Total	363,907		656,490		244,430		85,768		20,128		54,069		150,539		1,575,331


Residential real estate:

Multi-family mortgage
Pass	65,674		171,158		33,338		72,098		4,245		37,339		6,911		390,763
Special Mention	—		—		—		—		—		—		—		—
Classified	—		—		—		—		—		1,207		—		1,207

Total	65,674		171,158		33,338		72,098		4,245		38,546		6,911		391,970



Commercial real estate:
Owner occupied
Pass	148,727		181,856		124,643		159,095		73,107		273,556		66,424		1,027,408
Special Mention	107		—		—		1,483		3,144		1,533		197		6,464
Classified	—		—		242		6,030		1,401		11,629		698		20,000

Total	148,834		181,856		124,885		166,608		77,652		286,718		67,319		1,053,872


Non-owner occupied
Pass	297,437		431,172		133,593		162,956		258,273		530,258		54,403		1,868,092
Special Mention	—		—		—		—		241		551		—		792
Classified	—		—		—		582		3,402		12,254		—		16,238

Total	297,437		431,172		133,593		163,538		261,916		543,063		54,403		1,885,122





Total commercial loans
Pass	1,048,367		1,698,102		617,535		588,196		401,532		961,653		991,357		6,306,742
Special Mention	466		1,396		9		2,432		4,002		4,672		3,089		16,066
Classified	—		957		2,439		7,062		7,611		34,465		10,377		62,911

Total commercial loans	$	1,048,833	$	1,700,455	$	619,983	$	597,690	$	413,145	$	1,000,790	$	1,004,823	$	6,385,719

The following tables present the credit quality by classification (performing or nonperforming) of our consumer loan portfolio by year of origination as of June 30, 2022 and December 31, 2021. Revolving loans are presented separately. Management considers the guidance in ASC 310-20 when determining whether a modification, extension, or renewal constitutes a current period origination. Generally, current period renewals of credit are reunderwritten at the point of renewal and considered current period originations for the purposes of the tables below.


As of June 30, 2022
	Consumer Term Loans
	Amortized Cost Basis by Origination Year
	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Total





Residential real estate:
1-to-4 family mortgage
Performing	360,922		471,972		171,459		102,401		81,481		253,220		—		1,441,455
Nonperforming	—		3,019		3,699		1,353		1,368		6,558		—		15,997
Total	360,922		474,991		175,158		103,754		82,849		259,778		—		1,457,452

Residential line of credit
Performing	—		—		—		—		—		—		423,980		423,980
Nonperforming	—		—		—		—		—		—		1,505		1,505
Total	—		—		—		—		—		—		425,485		425,485

Consumer and other
Performing	72,176		65,356		47,669		34,779		29,873		90,011		10,104		349,968
Nonperforming	—		347		991		641		1,421		2,313		—		5,713
Total	72,176		65,703		48,660		35,420		31,294		92,324		10,104		355,681

Total consumer loans
Performing	433,098		537,328		219,128		137,180		111,354		343,231		434,084		2,215,403
Nonperforming	—		3,366		4,690		1,994		2,789		8,871		1,505		23,215
Total consumer loans	$	433,098	$	540,694	$	223,818	$	139,174	$	114,143	$	352,102	$	435,589	$	2,238,618


As of December 31, 2021
	Consumer Term Loans
	Amortized Cost Basis by Origination Year
	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Total





Residential real estate:
1-to-4 family mortgage
Performing	521,533		204,690		121,775		100,164		109,087		199,262		—		1,256,511
Nonperforming	1,232		3,734		977		2,429		1,765		3,819		—		13,956
Total	522,765		208,424		122,752		102,593		110,852		203,081		—		1,270,467

Residential line of credit
Performing	—		—		—		—		—		—		381,303		381,303
Nonperforming	—		—		—		—		—		—		1,736		1,736
Total	—		—		—		—		—		—		383,039		383,039

Consumer and other
Performing	82,910		55,123		38,281		32,893		21,856		74,248		14,478		319,789
Nonperforming	199		345		545		1,352		861		1,496		47		4,845
Total	83,109		55,468		38,826		34,245		22,717		75,744		14,525		324,634

Total consumer loans
Performing	604,443		259,813		160,056		133,057		130,943		273,510		395,781		1,957,603
Nonperforming	1,431		4,079		1,522		3,781		2,626		5,315		1,783		20,537
Total consumer loans	$	605,874	$	263,892	$	161,578	$	136,838	$	133,569	$	278,825	$	397,564	$	1,978,140


June 30, 2022	30-89 days past due		90 days or more and accruing interest		Non-accrual loans		Loans current on payments and accruing interest		Total
Commercial and industrial	$	1,929	$	55	$	3,414	$	1,474,026	$	1,479,424
Construction	2,654		2,675		—		1,570,002		1,575,331
Residential real estate:
1-to-4 family mortgage	13,989		9,675		6,322		1,427,466		1,457,452
Residential line of credit	912		48		1,457		423,068		425,485
Multi-family mortgage	—		329		46		391,595		391,970
Commercial real estate:
Owner occupied	323		707		6,416		1,046,426		1,053,872
Non-owner occupied	282		—		7,263		1,877,577		1,885,122
Consumer and other	8,397		1,096		4,617		341,571		355,681
Total	$	28,486	$	14,585	$	29,535	$	8,551,731	$	8,624,337


December 31, 2021	30-89 days past due		90 days or more and accruing interest		Non-accrual loans		Loans current on payments and accruing interest		Total
Commercial and industrial	$	1,030	$	63	$	1,520	$	1,287,952	$	1,290,565
Construction	4,852		718		3,622		1,318,467		1,327,659
Residential real estate:
1-to-4 family mortgage	11,007		9,363		4,593		1,245,504		1,270,467
Residential line of credit	319		—		1,736		380,984		383,039
Multi-family mortgage	—		—		49		326,502		326,551
Commercial real estate:
Owner occupied	1,417		—		6,710		943,455		951,582
Non-owner occupied	427		—		14,084		1,715,654		1,730,165
Consumer and other	7,398		1,591		3,254		312,391		324,634
Total	$	26,450	$	11,735	$	35,568	$	7,530,909	$	7,604,662



June 30, 2022	Non-accrual with no related allowance		Non-accrual with related allowance		Related allowance
Commercial and industrial	$	2,829	$	585	$	4

Residential real estate:
1-to-4 family mortgage	2,672		3,650		67
Residential line of credit	1,086		371		6
Multi-family mortgage	—		46		1
Commercial real estate:
Owner occupied	3,933		2,483		48
Non-owner occupied	6,854		409		33
Consumer and other	—		4,617		233
Total	$	17,374	$	12,161	$	392


December 31, 2021	Non-accrual with no related allowance		Non-accrual with related allowance		Related allowance

Commercial and industrial	$	1,085	$	435	$	6
Construction	2,882		740		99
Residential real estate:
1-to-4 family mortgage	378		4,215		60
Residential line of credit	797		939		11
Multi-family mortgage	—		49		2
Commercial real estate:
Owner occupied	5,346		1,364		206
Non-owner occupied	13,898		186		7
Consumer and other	—		3,254		164
Total	$	24,386	$	11,182	$	555


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Commercial and industrial	$	83	$	219	$	137	$	333
Construction	7		16		26		30
Residential real estate:
1-to-4 family mortgage	55		67		107		85
Residential line of credit	21		27		61		45
Multi-family mortgage	2		1		2		2
Commercial real estate:
Owner occupied	63		101		88		232
Non-owner occupied	76		141		146		230
Consumer and other	54		55		69		55
Total	$	361	$	627	$	636	$	1,012

As of June 30, 2022 and December 31, 2021, the Company had a recorded investment in TDRs of $17,054 and $32,435, respectively. The modifications included extensions of the maturity date and/or a stated rate of interest to one lower than the current market rate to borrowers experiencing financial difficulty. Of these loans, $10,286 and $11,084 were classified as non-accrual loans as of June 30, 2022 and December 31, 2021, respectively. The Company has calculated $78 and $1,245 in allowances for credit losses on TDRs as of June 30, 2022 and December 31, 2021, respectively. There were no significant unfunded loan commitments to extend additional funds on troubled debt restructurings as of June 30, 2022 or December 31, 2021.


Six Months Ended June 30, 2022	Number of loans	Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment		Charge offs and specific reserves
Commercial and industrial	1	$	55	$	55	$	—




Residential real estate:
1-to-4 family mortgage	1	80		80		—
Residential line of credit	1	49		49		—

Consumer and other	1	22		22		—
Total	4	$	206	$	206	$	—


Three Months Ended June 30, 2021	Number of loans	Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment		Charge offs and specific reserves
Commercial and industrial	4	$	13,055	$	13,055	$	—

Commercial real estate:
Owner occupied	4	3,550		3,550		—

Residential real estate:
1-to-4 family mortgage	2	811		811		—
Residential line of credit	1	11		11		—


Total	11	$	17,427	$	17,427	$	—


Six Months Ended June 30, 2021	Number of loans	Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment		Charge offs and specific reserves
Commercial and industrial	5	$	13,162	$	13,162	$	—

Commercial real estate:
Owner occupied	4	3,550		3,550		—
Non-owner occupied	1	11,997		11,997		—
Residential real estate:
1-4 family mortgage	2	811		811		—
Residential line of credit	1	11		11		—
Total	13	$	29,531	$	29,531	$	—

Troubled debt restructurings for which there was a payment default within twelve months following the modification totaled $304 during the six months ended June 30, 2022. There were no loans modified as troubled debt restructurings for which there was a payment default within twelve months following the modification during the three months ended June 30, 2022 nor the three and six months ended June 30, 2021. A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms.

In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Company’s internal underwriting policy. The terms of certain other loans were modified during the three and six months ended June 30, 2022 and 2021 that did not meet the definition of a TDR. The modification of these loans usually involve either a modification of the terms of a loan to borrowers who are not experiencing financial difficulties or an insignificant delay in payments.

For loans for which the repayment (based on the Company's assessment) is expected to be provided substantially through the operation or sale of collateral and the borrower is experiencing financial difficulty, the following tables present the loans and the corresponding individually assessed allowance for credit losses by class of financing receivable. Significant changes in individually assessed reserves are due to changes in the valuation of the underlying collateral in addition to changes in accrual and past due status.


	June 30, 2022
	Type of Collateral
	Real Estate		Financial Assets and Equipment		Total		Individually assessed allowance for credit loss
Commercial and industrial	$	1,396	$	2,235	$	3,631	$	—

Residential real estate:
1-to-4 family mortgage	883		—		883		—
Residential line of credit	1,401		—		1,401		1

Commercial real estate:
Owner occupied	8,015		—		8,015		45
Non-owner occupied	6,855		—		6,855		—
Consumer and other	24		—		24		1
Total	$	18,574	$	2,235	$	20,809	$	47


	December 31, 2021
	Type of Collateral
	Real Estate		Financial Assets and Equipment		Total		Individually assessed allowance for credit loss
Commercial and industrial	$	799	$	1,090	$	1,889	$	—
Construction	3,580		—		3,580		92
Residential real estate:
1-to-4 family mortgage	338		—		338		—
Residential line of credit	1,400		—		1,400		10

Commercial real estate:
Owner occupied	8,117		71		8,188		200
Non-owner occupied	13,899		—		13,899		—
Consumer and other	25		—		25		1
Total	$	28,158	$	1,161	$	29,319	$	303