
	September 30,		December 31,
	2022		2021
Commercial and industrial (1)	$	1,534,159	$	1,290,565
Construction	1,679,497		1,327,659
Residential real estate:
1-to-4 family mortgage	1,545,252		1,270,467
Residential line of credit	460,774		383,039
Multi-family mortgage	394,366		326,551
Commercial real estate:
Owner-occupied	1,158,343		951,582
Non-owner occupied	1,954,219		1,730,165
Consumer and other	378,406		324,634
Gross loans	9,105,016		7,604,662
Less: Allowance for credit losses	(134,476)		(125,559)
Net loans	$	8,970,540	$	7,479,103

As of September 30, 2022 and December 31, 2021, $865,616 and $1,136,294, respectively, of qualifying residential mortgage loans (including loans held for sale) and $1,665,345 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 September 30, 2022 and December 31, 2021, qualifying loans of $3,012,814 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, assessing 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 nine months ended September 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. Qualitative adjustments increased the reserve on loans with commercial exposure to address elevated risk in these assets not covered by the model. Loss rates on residential backed loans were qualitatively adjusted downwards, addressing the relative strength of asset values in the Company's predominant markets. Qualitative factors also included weighted projections that the economy may be nearing a recession.


	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 September 30, 2022
Beginning balance - June 30, 2022	$	10,191	$	38,383	$	21,398	$	6,875	$	6,503	$	7,329	$	22,536	$	13,057	$	126,272
Provision for credit losses	5		3,044		3,975		77		(629)		688		247		782		8,189
Recoveries of loans previously charged-off	342		—		13		—		—		51		—		70		476
Loans charged off	—		—		(20)		—		—		—		—		(441)		(461)


Ending balance - September 30, 2022	$	10,538	$	41,427	$	25,366	$	6,952	$	5,874	$	8,068	$	22,783	$	13,468	$	134,476
Nine Months Ended September 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	(4,784)		12,840		6,266		1,032		(1,102)		(4,601)		(2,985)		3,575		10,241
Recoveries of loans previously charged-off	1,326		11		39		17		—		76		—		635		2,104
Loans charged off	(1,755)		—		(43)		—		—		—		—		(1,630)		(3,428)


Ending balance - September 30, 2022	$	10,538	$	41,427	$	25,366	$	6,952	$	5,874	$	8,068	$	22,783	$	13,468	$	134,476


	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 September 30, 2021
Beginning balance - June 30, 2021	$	13,791	$	32,838	$	19,672	$	6,716	$	13,475	$	4,707	$	42,856	$	10,608	$	144,663
Provision for loan losses	3,203		(3,080)		(2,677)		(952)		(1,462)		7,665		(6,450)		921		(2,832)
Recoveries of loans previously charged-off	19		3		33		1		—		4		—		169		229
Loans charged off	(2,175)		(1)		—		—		—		—		—		(438)		(2,614)

Ending balance - September 30, 2021	$	14,838	$	29,760	$	17,028	$	5,765	$	12,013	$	12,376	$	36,406	$	11,260	$	139,446
Nine Months Ended September 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	2,667		(28,690)		(2,141)		(4,767)		4,839		7,384		(7,741)		1,100		(27,349)
Recoveries of loans previously charged-off	235		3		98		16		—		143		—		554		1,049
Loans charged off	(2,812)		(30)		(149)		(18)		—		—		—		(1,634)		(4,643)


Ending balance - September 30, 2021	$	14,838	$	29,760	$	17,028	$	5,765	$	12,013	$	12,376	$	36,406	$	11,260	$	139,446

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 nine months ended September 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 September 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 September 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	$	284,399	$	220,172	$	83,831	$	96,337	$	40,939	$	63,998	$	718,260	$	1,507,936
Special Mention	26		355		—		375		151		—		2,732		3,639
Classified	65		1,220		2,106		1,593		451		9,015		8,134		22,584

Total	284,490		221,747		85,937		98,305		41,541		73,013		729,126		1,534,159


Construction
Pass	570,166		569,425		215,636		71,706		18,027		46,794		183,738		1,675,492
Special Mention	428		—		18		—		7		2,530		—		2,983
Classified	—		822		—		—		—		—		200		1,022

Total	570,594		570,247		215,654		71,706		18,034		49,324		183,938		1,679,497


Residential real estate:

Multi-family mortgage
Pass	117,654		163,283		33,326		30,470		4,201		35,279		8,966		393,179
Special Mention	—		—		—		—		—		—		—		—
Classified	—		—		—		—		—		1,187		—		1,187

Total	117,654		163,283		33,326		30,470		4,201		36,466		8,966		394,366



Commercial real estate:
Owner occupied
Pass	215,250		231,038		117,751		159,546		78,881		266,021		66,718		1,135,205
Special Mention	103		1,293		—		1,470		2,294		390		—		5,550
Classified	—		—		241		5,992		1,282		9,418		655		17,588

Total	215,353		232,331		117,992		167,008		82,457		275,829		67,373		1,158,343


Non-owner occupied
Pass	411,612		428,087		138,590		171,747		225,519		505,370		56,718		1,937,643
Special Mention	—		1,015		—		—		82		—		—		1,097
Classified	—		—		—		150		3,329		12,000		—		15,479

Total	411,612		429,102		138,590		171,897		228,930		517,370		56,718		1,954,219





Total commercial loans
Pass	1,599,081		1,612,005		589,134		529,806		367,567		917,462		1,034,400		6,649,455
Special Mention	557		2,663		18		1,845		2,534		2,920		2,732		13,269
Classified	65		2,042		2,347		7,735		5,062		31,620		8,989		57,860

Total commercial loans	$	1,599,703	$	1,616,710	$	591,499	$	539,386	$	375,163	$	952,002	$	1,046,121	$	6,720,584

The following tables present the credit quality by classification (performing or nonperforming) of our consumer loan portfolio by year of origination as of September 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 September 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	507,621		454,839		166,905		96,216		72,019		228,305		—		1,525,905
Nonperforming	1,039		4,379		3,940		2,020		1,731		6,238		—		19,347
Total	508,660		459,218		170,845		98,236		73,750		234,543		—		1,545,252

Residential line of credit
Performing	—		—		—		—		—		—		458,894		458,894
Nonperforming	—		—		—		—		—		—		1,880		1,880
Total	—		—		—		—		—		—		460,774		460,774

Consumer and other
Performing	107,264		61,291		44,898		32,694		28,416		86,524		9,564		370,651
Nonperforming	81		1,061		1,365		936		1,591		2,720		1		7,755
Total	107,345		62,352		46,263		33,630		30,007		89,244		9,565		378,406

Total consumer loans
Performing	614,885		516,130		211,803		128,910		100,435		314,829		468,458		2,355,450
Nonperforming	1,120		5,440		5,305		2,956		3,322		8,958		1,881		28,982
Total consumer loans	$	616,005	$	521,570	$	217,108	$	131,866	$	103,757	$	323,787	$	470,339	$	2,384,432


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


September 30, 2022	30-89 days past due and accruing interest		90 days or more and accruing interest		Non-accrual loans		Loans current on payments and accruing interest		Total
Commercial and industrial	$	1,812	$	38	$	1,730	$	1,530,579	$	1,534,159
Construction	1,916		—		—		1,677,581		1,679,497
Residential real estate:
1-to-4 family mortgage	16,994		13,767		5,580		1,508,911		1,545,252
Residential line of credit	542		209		1,671		458,352		460,774
Multi-family mortgage	—		—		44		394,322		394,366
Commercial real estate:
Owner occupied	982		—		4,873		1,152,488		1,158,343
Non-owner occupied	293		—		6,960		1,946,966		1,954,219
Consumer and other	8,057		1,988		5,767		362,594		378,406
Total	$	30,596	$	16,002	$	26,625	$	9,031,793	$	9,105,016


December 31, 2021	30-89 days past due and accruing interest		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



September 30, 2022	Non-accrual with no related allowance		Non-accrual with related allowance		Related allowance
Commercial and industrial	$	1,228	$	502	$	3

Residential real estate:
1-to-4 family mortgage	1,537		4,043		73
Residential line of credit	1,070		601		9
Multi-family mortgage	—		44		1
Commercial real estate:
Owner occupied	4,710		163		1
Non-owner occupied	6,751		209		4
Consumer and other	—		5,767		291
Total	$	15,296	$	11,329	$	382


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 September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Commercial and industrial	$	26	$	190	$	163	$	523
Construction	5		75		31		105
Residential real estate:
1-to-4 family mortgage	78		114		185		199
Residential line of credit	37		197		98		242
Multi-family mortgage	—		—		2		2
Commercial real estate:
Owner occupied	61		187		149		419
Non-owner occupied	89		123		235		353
Consumer and other	113		75		182		130
Total	$	409	$	961	$	1,045	$	1,973

As of September 30, 2022 and December 31, 2021, the Company had a recorded investment in TDRs of $14,959 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, $7,592 and $11,084 were classified as non-accrual loans as of September 30, 2022 and December 31, 2021, respectively. The Company has calculated $258 and $1,245 in allowances for credit losses on TDRs as of September 30, 2022 and December 31, 2021, respectively. There were no significant unfunded loan commitments to extend additional funds on troubled debt restructurings as of September 30, 2022 or December 31, 2021.


Nine Months Ended September 30, 2022	Number of loans	Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment		Charge offs and specific reserves
Commercial and industrial	2	$	262	$	172	$	—




Residential real estate:
1-to-4 family mortgage	2	332		648		—
Residential line of credit	1	49		49		—

Consumer and other	1	22		22		—
Total	6	$	665	$	891	$	—


Nine Months Ended September 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	3	945		945		—
Residential line of credit	1	11		11		—
Total	14	$	29,665	$	29,665	$	—

Troubled debt restructurings for which there was a payment default within twelve months following the modification totaled $304 during the nine months ended September 30, 2022. Troubled debt restructurings for which there was a payment default within twelve months following the modification totaled $304 during the three and nine months ended September 30, 2022. Troubled debt restructurings for which there was a payment default within twelve months following the modification totaled $305 during the three and nine months ended September 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 nine months ended September 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.


	September 30, 2022
	Type of Collateral
	Real Estate		Financial Assets and Equipment		Total		Individually assessed allowance for credit loss
Commercial and industrial	$	1,228	$	787	$	2,015	$	—

Residential real estate:
1-to-4 family mortgage	1,192		—		1,192		205
Residential line of credit	1,069		—		1,069		—

Commercial real estate:
Owner occupied	5,823		—		5,823		—
Non-owner occupied	6,751		—		6,751		—
Consumer and other	139		—		139		—
Total	$	16,202	$	787	$	16,989	$	205