Loan Portfolio and Allowance for Credit Losses

3 Months Ended

Mar. 31, 2022

Loan Portfolio and Allowance for Credit Losses [Abstract]

Loan Portfolio and Allowance for Credit Losses

(5) Loan Portfolio and Allowance for Credit Losses

Upon adoption of CECL, management pooled loans with similar risk characteristics. The portfolio segment is defined as the level at which an entity develops and documents a systematic methodology to determine its allowance for credit losses on loans.

The Following table presents loans by portfolio segment:

	March 31, 2022
(dollars in thousands)	New York and other states*		Florida		Total
Commercial:
Commercial real estate	$	147,295		23,935		171,230
Other		20,198		980		21,178
Real estate mortgage - 1 to 4 family:
First mortgages		2,729,257		1,236,705		3,965,962
Home equity loans		47,043		13,429		60,472
Home equity lines of credit		172,854		63,263		236,117
Installment		7,269		2,126		9,395
Total loans, net	$	3,123,916		1,340,438		4,464,354
Less: Allowance for credit losses on loans						46,178
Net loans					$	4,418,176

Included in commercial loans above are Paycheck Protection Program (“PPP”) loans totaling $3.0 million as of March 31, 2022.

At March 31, 2022, the Company had approximately $30.4 million of real estate construction loans. Of the $30.4 million in real estate construction loans at March 31, 2022, approximately $10.5 million are secured by first mortgages to residential borrowers while approximately $19.9 million were to commercial borrowers for residential construction projects. The vast majority of construction loans are in the Company’s New York market.

Allowance for credit losses on loans

The level of the ACLL is based on factors that influence management’s current estimate of expected credit losses including past events, current conditions. There were no changes in the Company’s methodology for the allowance for credit losses on loans for the period ended March 31, 2022 compared to adoption date.  Consistent with adoption date, the Company has determined the stagflation forecast scenario to be appropriate for the March 31, 2022 ACLL calculation. The Company selected the stagflation economic forecast for credit losses as management expects that markets will experience a slight decline in economic conditions and a slight increase in the unemployment rate over the next two years.

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					January 1, 2022
	Pre-Adoption Balance		Impact of Adoption			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 the allowance for credit losses on loans by portfolio segment is summarized as follows:

	For the three months ended March 31, 2022
(dollars in thousands)	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 adjusted for ASU 2016-13	$	2,149			44,406			65			46,620
Loans charged off:
New York and other states*		36			-			10			46
Florida		-			-			1			1
Total loan chargeoffs		36			-			11			47
Recoveries of loans previously charged off:
New York and other states*		-			97			8			105
Florida		-			-			-			-
Total recoveries		-			97			8			105
Net loans charged off (recoveries)		36			(97	)		3			(58	)
(Credit) provision for credit losses		64			(572	)		8			(500	)
Balance at end of period	$	2,177			43,931			70			46,178

The Company’s allowance for credit losses on unfunded commitments is recognized as a liability (accrued expenses and other liabilities) with adjustments to the reserve recognized in (credit) provision for credit losses in the consolidated income statement. The Company’s activity in the allowance for credit losses on unfunded commitments for the three months ended March 31, 2022 was as follows:

(In thousands)	Total
Balance at January 1, 2022	$	18
Impact of Adopting CECL		2,335
Adjusted Balance at January 1, 2022		2,353
Provision for credit losses		300
Balance at March 31, 2022	$	2,653

Loan Credit Quality

The Company categorizes commercial loans 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. On at least an annual basis, the Company’s loan grading process analyzes non-homogeneous loans, such as commercial loans and commercial real estate loans, individually by grading the loans based on credit risk. The loan grades assigned to all loan types are tested by the Company’s internal loan review department in accordance with the Company’s internal loan review policy.

The Company uses the following definitions for classified loans:

Special Mention: Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Company’s credit position at some future date.

Substandard: Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified as such have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.

Doubtful: Loans classified as doubtful have all the weaknesses inherent in those loans classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be “pass” rated loans.

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 credit losses on loans. The payment status of these homogeneous pools as of March 31, 2022 is also included in the aging of the past due loans table. Nonperforming loans shown in the table below were loans on nonaccrual status and loans over 90 days past due and accruing.

As of March 31, 2022, and based on the most recent analysis performed, the risk category of loans by class of loans, and gross chargeoffs for each loan type by origination year was as follows:

(in thousands)	March 31, 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	$	10,701	$	32,756	$	24,411	$	26,575	$	20,900	$	46,493	$	7,424	$	-	$	169,260
Special Mention		-		-		73		-		255		-		-		-		328
Substandard		-		-		118		-		140		1,384		-		-		1,642
Total Commercial Loans	$	10,701	$	32,756	$	24,602	$	26,575	$	21,295	$	47,877	$	7,424	$	-	$	171,230
Commercial Loans:
Current-period Gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	36	$	-	$	-	$	36
	$	-	$	-	$	-	$	-	$	-	$	36	$	-	$	-	$	36
Commercial Other:
Risk rating
Pass	$	419	$	5,931	$	3,301	$	786	$	956	$	2,634	$	6,705	$	-	$	20,732
Special mention		-		320		-		-		-		-		-		-		320
Substandard		-		25		-		-		-		101		-		-		126
Total Commercial Real Estate Loans	$	419	$	6,276	$	3,301	$	786	$	956	$	2,735	$	6,705	$	-	$	21,178
Other Commercial Loans:
Current-period Gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-		-
	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Residential First Mortgage:
Risk rating
Performing	$	142,158	$	971,838	$	834,631	$	392,717	$	279,365	$	1,328,713	$	545	$	-	$	3,949,967
Nonperforming		-		-		83		671		422		14,819		-		-		15,995
Total First Mortgage:	$	142,158	$	971,838	$	834,714	$	393,388	$	279,787	$	1,343,532	$	545	$	-	$	3,965,962
Residential First Mortgage Loans:
Current-period Gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-		-
	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Home Equity Lines:
Risk rating
Performing	$	2,414	$	10,463	$	7,431	$	8,589	$	5,943	$	25,324	$	-	$	-	$	60,164
Nonperforming		-		-		-		-		135		173		-		-		308
Total Home Equity Lines:	$	2,414	$	10,463	$	7,431	$	8,589	$	6,078	$	25,497	$	-	$	-	$	60,472
Home Equity Lines Loans:
Current-period Gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-		-
	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Home Equity Credit Lines:
Risk rating
Performing	$	221	$	721	$	492	$	100	$	70	$	19,850	$	211,792	$	-	$	233,246
Nonperforming		-		-		-		-		-		2,603		268		-		2,871
Total Home Equity Credit Lines:	$	221	$	721	$	492	$	100	$	70	$	22,453	$	212,060	$	-	$	236,117
Home Equity Credit Lines Loans:
Current-period Gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-		-
	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Installments:
Risk rating
Performing	$	937	$	3,409	$	1,326	$	1,471	$	686	$	375	$	1,150	$	-	$	9,354
Nonperforming		-		12		1		27		-		-		1		-		41
Total Installments	$	937	$	3,421	$	1,327	$	1,498	$	686	$	375	$	1,151	$	-	$	9,395
Installments Loans:
Current-period Gross writeoffs	$	-	$	-	$	5	$	5	$	-	$	1	$	-	$	-		11
	$	-	$	-	$	5	$	5	$	-	$	1	$	-	$	-	$	11

The Company transfers loans to other real estate owned, at fair value less cost to sell, in the period the Company obtains physical possession of the property (through legal title or through a deed in lieu). Other real estate owned is included in Other assets on the Balance Sheet. As of March 31, 2022 other real estate owned included $270 thousand of residential foreclosed properties. In addition, non-accrual residential mortgage loans that are in the process of foreclosure had an amortized cost of $11.7 million as of March 31, 2022.

The following tables present the aging of the amortized cost in past due loans by loan class and by region as of March 31, 2022:

	March 31, 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	$	-		106		123		229		147,066		147,295
Other		27		-		4		31		20,167		20,198
Real estate mortgage - 1 to 4 family:
First mortgages		2,114		1,209		9,562		12,885		2,716,372		2,729,257
Home equity loans		19		-		173		192		46,851		47,043
Home equity lines of credit		727		25		1,187		1,939		170,915		172,854
Installment		36		24		14		74		7,195		7,269
Total	$	2,923		1,364		11,063		15,350		3,108,566		3,123,916

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	$	-		-		-		-		23,935		23,935
Other		-		-		-		-		980		980
Real estate mortgage - 1 to 4 family:
First mortgages		623		-		1,552		2,175		1,234,530		1,236,705
Home equity loans		-		-		44		44		13,385		13,429
Home equity lines of credit		-		89		-		89		63,174		63,263
Installment		-		1		-		1		2,125		2,126
Total	$	623		90		1,596		2,309		1,338,129		1,340,438

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	$	-		106		123		229		171,001		171,230
Other		27		-		4		31		21,147		21,178
Real estate mortgage - 1 to 4 family:
First mortgages		2,737		1,209		11,114		15,060		3,950,902		3,965,962
Home equity loans		19		-		217		236		60,236		60,472
Home equity lines of credit		727		114		1,187		2,028		234,089		236,117
Installment		36		25		14		75		9,320		9,395
Total	$	3,546		1,454		12,659		17,659		4,446,695		4,464,354

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

At March 31, 2022, there were no loans that were 90 days past due and still accruing interest.  As a result, non-accrual loans include all loans 90 days or more past due as well as certain loans less than 90 days past due that were placed on non-accrual status for reasons other than delinquent status.  There are no commitments to extend further credit on non-accrual or restructured loans.

Loans individually evaluated for impairment are non-accrual commercial loans, as well as all loans classified as troubled debt restructurings. As of March 31, 2022, there was no allowance for credit losses based on the loans individually evaluated for impairment. Residential and installment non-accrual loans which are not TDRs are collectively evaluated to determine the allowance for credit loss.

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

	March 31, 2022
(dollars in thousands)	New York and other states*		Florida		Total
Loans in non-accrual status:
Commercial:
Commercial real estate	$	183		-		183
Other		4		-		4
Real estate mortgage - 1 to 4 family:
First mortgages		14,102		1,893		15,995
Home equity loans		264		44		308
Home equity lines of credit		2,699		172		2,871
Installment		33		8		41
Total non-accrual loans		17,285		2,117		19,402
Restructured real estate mortgages - 1 to 4 family		16		-		16
Total nonperforming loans	$	17,301		2,117		19,418

The following table presents the amortized cost basis of loans on non-accrual status and loans past due over 89 days still accruing as of March 31, 2022:

	March 31, 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	$	61	$	123	$	-
Other		-		4		-
Real estate mortgage - 1 to 4 family:
First mortgages		6,762		9,233		-
Home equity loans		37		271		-
Home equity lines of credit		1,030		1,841		-
Installment		-		41		-
Total loans, net	$	7,890	$	11,513	$	-

The non-accrual balance of $11.5 million was collectively evaluated and the associated allowance for credit losses on loans was not material as of March 31, 2022.

The following tables present the balance in the allowance for credit losses on loans by portfolio segment and based on impairment evaluation as of March 31, 2022:

	March 31, 2022
(dollars in thousands)	Commercial Loans		1-to-4 Family Residential Real Estate		Installment Loans		Total
Allowance for credit losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	-		-		-		-
Collectively evaluated for impairment		2,177		43,931		70		46,178
Total ending allowance balance	$	2,177		43,931		70		46,178
Loans:
Individually evaluated for impairment	$	305		17,617		-		17,922
Collectively evaluated for impairment		192,103		4,244,934		9,395		4,446,432
Total ending loans balance	$	192,408		4,262,551		9,395		4,464,354

A financial asset is considered collateral-dependent when the debtor is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. Expected Credit losses for the collateral dependent loans are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. The following table presents the amortized cost basis of individually analyzed collateral dependent loans by portfolio segment as of March 31, 2022:

	Type of Collateral
(dollars in thousands)
	Real Estate		Investment Securities/Cash		Other
Commercial:
Commercial real estate	$	301		-		-
Other		4		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		15,417		-		-
Home equity loans		159		-		-
Home equity lines of credit		2,041		-		-
Installment		-		-		-
Total Loans	$	17,922		-		-

The Company has not committed to lend additional amounts to customers with outstanding loans that are classified as TDRs. Interest income recognized on loans that are individually evaluated was not material during the three months ended March 31, 2022 and 2021.

As of March 31, 2022 loans individually evaluated included approximately $9.8 million of loans in accruing status that were identified as TDR’s in accordance with regulatory guidance related to Chapter 7 bankruptcy loans.

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

	Three months ended March 31, 2022
New York and other states*:
(dollars in thousands)	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		-		-		-
Home equity loans		3		370		370
Home equity lines of credit		-		-		-
Total		3	$	370		370

Florida:
(dollars in thousands)	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		-		-		-
Home equity loans		-		-		-
Home equity lines of credit		-		-		-
Total		-	$	-		-

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

For the three months ended March 31, 2021 there were no loans that were modified as TDR’s.

The addition of these TDR’s did not have a significant impact on the allowance for credit losses on loans. The nature of the modifications that resulted in them being classified as a TDR was the borrower filing for bankruptcy protection. There were no TDRs that defaulted during the three months ended March 31, 2022 and 2021 which had been modified within the last twelve months.

In situations where the Bank considers a loan modification, management determines whether the borrower is experiencing financial difficulty by performing an evaluation 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 underwriting policy.

Generally, the modification of the terms of loans was the result of the borrower filing for bankruptcy protection. Chapter 13 bankruptcies generally include the deferral of all past due amounts for a period of generally 60 months in accordance with the bankruptcy court order. In the case of Chapter 7 bankruptcies, as previously noted, even though there is no modification of terms, the borrowers’ debt to the Company was discharged and they did not reaffirm the debt.

A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms. In situations involving a borrower filing for Chapter 13 bankruptcy protection, however, a loan is considered to be in payment default once it is 30 days contractually past due, consistent with the treatment by the bankruptcy court.

Prior to the adoption of CECL on January 1, 2022, the Company calculated allowance for loan losses using the incurred losses methodology. The following tables are the disclosures related to loans in prior periods.

The Following table presents the recorded investment in loans by portfolio segment:

	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

Included in commercial loans above are Paycheck Protection Program (“PPP”) loans totaling $10.0 million as of December 31, 2021.

At December 31, 2021, the Company had approximately $37.3 million of real estate construction loans. Of the $37.3 million in real estate construction loans at December 31, 2021, approximately $17.9 million were secured by first mortgages to residential borrowers while approximately $19.4 million were to commercial borrowers for residential construction projects.  The vast majority of construction loans are in the Company’s New York market.

The Following table presents the summary of past due loans by portfolio segment:

	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.

At  December 31, 2021, there were no loans that were 90 days past due and still accruing interest.  As a result, non-accrual loans include all loans 90 days or more past due as well as certain loans less than 90 days past due that were placed on non-accrual status for reasons other than delinquent status.  There are no commitments to extend further credit on non-accrual or restructured loans.

The Company has identified non-accrual commercial and commercial real estate loans, as well as all loans restructured under a TDR, as impaired loans.  A loan is considered impaired when it is probable that the borrower will be unable to repay the loan according to the original contractual terms of the loan agreement or the loan is restructured as a TDR.

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 payment status of these homogeneous pools as of December 31, 2021 is included in the aging of the recorded investment of the past due loans table. In addition, the total nonperforming portion of these homogeneous loan pools as of December 31, 2021 is presented in the non-accrual loans table.

The Following table presents the non-accrual loans by portfolio segment:

	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.

The Company transfers loans to other real estate owned, at fair value less cost to sell, in the period the Company obtains physical possession of the property (through legal title or through a deed in lieu).  Other real estate owned is included in other assets on the Balance Sheet.  As of December 31, 2021, other real estate owned included $362 thousand of residential foreclosed properties.  In addition, non-accrual residential mortgage loans that are in the process of foreclosure had a recorded investment of $9.7 million as of December 31, 2021.

The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2021:

	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

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.

Activity in the allowance for loan losses for the three months ended March 31, 2021 was as follows:

	For the three months ended March 31, 2021
(dollars in thousands)	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*		-			86			7			93
Florida		-			-			2			2
Total loan chargeoffs		-			86			9			95
Recoveries of loans previously charged off:
New York and other states*		32			88			21			141
Florida		-			-			-			-
Total recoveries		32			88			21			141
Net loans (recoveries) charged off		(32	)		(2	)		(12	)		(46	)
(Credit) provision for loan losses		(120	)		555			(85	)		350
Balance at end of period	$	4,052			45,507			432			49,991

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

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.

Included in classified loans in the above tables are impaired loans of $226 thousand at December 31, 2021.