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Loan Portfolio and Allowance for Credit Losses
 12 Months Ended
Dec. 31, 2022
Loan Portfolio and Allowance for Credit Losses [Abstract]  
Loan Portfolio and Allowance for Credit Losses
(4)
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:


  
December 31, 2022
  
(dollars in thousands)
  
New York and
other states*
    
Florida
    
Total
  
Commercial:
  
 
    
 
    
 
  
Commercial real estate
  
$
177,371
     $
32,551
     $
209,922
  
Other
    
20,221
      
868
      
21,089
  
Real estate mortgage - 1 to 4 family:
    
 
      
 
      
 
  
First mortgages
    
2,776,989
      
1,369,913
      
4,146,902
  
Home equity loans
    
43,999
      
12,550
      
56,549
  
Home equity lines of credit
    
191,926
      
94,506
      
286,432
  
Installment
    
9,408
      
2,899
      
12,307
  
Total loans, net
  
$
3,219,914
     $
1,513,287
      
4,733,201
  
Less: Allowance for credit losses
    
 
      
 
      
46,032
  
Net loans
    
 
      
 
    
$
4,687,169
  


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

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

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


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



Included in commercial loans above are Paycheck Protection Program (“PPP”) loans totaling approximately $1.0 million and $10.0 million as of December 31, 2022 and 2021, respectively.


At December 31, 2022 and 2021, the Company had approximately $36.4 million and $37.3 million, respectively, of real estate construction loans. Of the $36.4 million in real estate construction loans at December 31, 2022, approximately $14.1 million are secured by first mortgages to residential borrowers while approximately $22.3 million were to commercial borrowers for residential construction projects. 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 majority of construction loans are in the Company’s New York market.


At December 31, 2022 and 2021, loans to executive officers, directors, and to associates of such persons aggregated $20.5 million and $17.9 million, respectively.  During 2022, approximately $7.6 million of new loans were made and repayments of loans totaled approximately $5.0 million.  The composition of the related parties’ loan balances had no changes during the year. All loans are current according to their term.


TrustCo lends in the geographic territory of its branch locations in New York, Florida, Massachusetts, New Jersey and Vermont.  Although the loan portfolio is diversified, a portion of its debtors’ ability to repay depends significantly on the economic conditions prevailing in the respective geographic territory.


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 and current conditions. There were no significant changes in the Company’s methodology for the allowance for credit losses on loans for the period ended December 31, 2022 compared to the adoption date. Consistent with the adoption date, the Company has determined the Stagflation forecast scenario to be appropriate for the December 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
Pre-Adoption
Balance
    
Impact of Adoption
    
January 1, 2022
Post CECL
Adoption
  
 
  
Total
          
Total
  
Commercial:
                  
Commercial real estate
  
$
3,121
      
(1,100
)
    
2,021
  
Other
    
14
      
114
      
128
  
Real estate mortgage - 1 to 4 family:
                        
First mortgages
    
37,249
      
1,703
      
38,952
  
Home equity loans
    
583
      
262
      
845
  
Home equity lines of credit
    
2,857
      
1,752
      
4,609
  
Installment
    
443
      
(378
)
    
65
  
Total Allowance
  
$
44,267
      
2,353
      
46,620
 



Activity in the allowance for credit losses on loans by portfolio segment for the year ended December 31, 2022 is summarized as follows:

    For the year ended December 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*
    
40
      
24
      
87
      
151
  
Florida
    
-
      
-
      
1
      
1
  
Total loan chargeoffs
    
40
      
24
      
88
      
152
  
Recoveries of loans previously charged off:                                
New York and other states*
    
4
      
450
      
7
      
461
  
Florida
    
-
      
-
      
3
      
3
  
Total recoveries
    
4
      
450
      
10
      
464
  
Net loans (recoveries) charged off
    
36
      
(426
)
    
78
      
(312
)
(Credit) provision for credit losses
    
483
      
(1,561
)
    
178
      
(900
)
Balance at end of period
  
$
2,596
    
$
43,271
    
$
165
    
$
46,032
  


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


Activity in the allowance for loan losses by portfolio segment for the year ended December 31, 2021 is summarized as follows:

    For the year ended December 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*
    
30
      
339
      
58
      
427
  
Florida
    
-
      
1
      
2
      
3
  
Total loan chargeoffs
    
30
      
340
      
60
      
430
  
Recoveries of loans previously charged off:                                
New York and other states*
    
32
      
464
      
54
      
550
  
Florida
    
-
      
2
      
-
      
2
  
Total recoveries
    
32
      
466
      
54
      
552
  
Net loan recoveries
    
(2
)
    
(126
)
    
6
      
(122
)
(Credit) provision for loan losses
    
(1,007
)
    
(4,387
)
    
(56
)
    
(5,450
)
Balance at end of period
  
$
3,135
    
$
40,689
    
$
443
    
$
44,267
  


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

   
For the year ended December 31, 2020
  
         
Real Estate
              
         
Mortgage-
              
(dollars in thousands)
  
Commercial
    
1 to 4 Family
    
Installment
    
Total
  
                         
Balance at beginning of period
  
$
3,999
      
39,748
      
570
      
44,317
  
Loans charged off:
                                
New York and other states*
    
36
      
404
      
187
      
627
  
Florida
    
-
      
-
      
34
      
34
  
Total loan chargeoffs
    
36
      
404
      
221
      
661
  
                                 
Recoveries of loans previously charged off:
                                
New York and other states*
    
10
      
314
      
12
      
336
  
Florida
    
-
      
3
      
-
      
3
  
Total recoveries
    
10
      
317
      
12
      
339
  
Net loans charged off
    
26
      
87
      
209
      
322
  
Provision for loan losses
    
167
      
5,289
      
144
      
5,600
  
Balance at end of period
  
$
4,140
      
44,950
      
505
      
49,595
  


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

 
  
December 31, 2022
  
(dollars in thousands)
  
Commercial
Loans
    
1-to-4 Family
Residential
Real Estate
    
Installment
Loans
    
Total
  
 
                        
Allowance for credit losses on loans:
                        
Ending allowance balance attributable to loans:
                        
Individually evaluated for impairment
  
$
-
      
-
      
-
      
-
  
Collectively evaluated for impairment
    
2,596
      
43,271
      
165
      
46,032
  
 
                                
Total ending allowance balance
  
$
2,596
      
43,271
      
165
      
46,032
  
 
                                
Loans:
                                
Individually evaluated for impairment
  
$
646
      
24,967
      
82
      
25,695
  
Collectively evaluated for impairment
    
230,365
      
4,464,916
      
12,225
      
4,707,506
  
 
                                
Total ending loans balance
  
$
231,011
      
4,489,883
      
12,307
      
4,733,201
  


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

 
  
December 31, 2021
  
(dollars in thousands)
  
Commercial
Loans
    
1-to-4 Family
Residential
Real Estate
    
Installment
Loans
    
Total
  
 
                        
Allowance for loan losses:
                        
Ending allowance balance attributable to loans:
                        
Individually evaluated for impairment
  
$
-
      
-
      
-
      
-
  
Collectively evaluated for impairment
    
3,135
      
40,689
      
443
      
44,267
  
 
                                
Total ending allowance balance
  

3,135
      
40,689
      
443
      
44,267
  
 
                                
Loans:
                                
Individually evaluated for impairment
  
$
232
      
18,272
      
-
      
18,504
  
Collectively evaluated for impairment
    
199,968
      
4,210,891
      
9,416
      
4,420,275
  
 
                                
Total ending loans balance
  
$
200,200
      
4,229,163
      
9,416
      
4,438,779
  


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

 
  
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.


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 were as follows:

(In thousands)
  
For the year ended
December 31, 2022
  
 
      
Balance at January 1, 2022
  
$
 18  
Impact of Adopting CECL
     2,335  
Adjusted Balance at January 1, 2022
     2,353  
Provision for credit losses
     559  
Balance at December 31, 2022
  
$
 2,912  


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 Company’s internal loan review department in accordance with the Company’s internal loan review policy tests the loan grades assigned to all loan types.


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 December 31, 2022 and December 31, 2021 is also included in the aging of the past due loans table. Nonperforming loans shown in the table below were loans on non-accrual status and loans over 90 days past due and accruing.


As of December 31, 2022, and based on the most recent analysis performed, the risk category of loans by class of loans, and gross charge-offs year to date for each loan type by origination year was as follows:

Loan Credit Quality
                                                      
(in thousands)
  
December 31, 2022
  
   
Term Loans Amortized Cost Basis by Origination Year
  
Commercial :
  
2022
    
2021
    
2020
    
2019
    
2018
    
Prior
    
Revolving Loans Amortized Cost Basis
    
Revolving Loan Converted to Term
    
Total
  
Risk rating
                                                      
Pass
  
$
79,430
    
$
29,991
    
$
18,708
    
$
22,790
    
$
16,598
    
$
32,666
    
$
8,022
    
$
-
    
$
208,205
  
Special Mention
    
-
      
-
      
62
      
-
      
243
      
-
      
-
      
-
      
305
  
Substandard
    
-
      
-
      
113
      
-
      
128
      
1,171
      
-
      
-
      
1,412
  
Total Commercial Loans
  
$
79,430
    
$
29,991
    
$
18,883
    
$
22,790
    
$
16,969
    
$
33,837
    
$
8,022
    
$
-
    
$
209,922
  
 
                                                                        
Commercial Loans:
                                                                        
Current-period Gross writeoffs
  
$
-
      
-
      
-
      
-
      
-
      
40
      
-
      
-
    
$
40
  
   
$
-
      
-
      
-
      
-
      
-
      
40
      
-
      
-
    
$
40
  
                                                                         
Commercial Other:
                                                                        
Risk rating
                                                                        
Pass
  
$
2,972
    
$
2,848
    
$
2,273
    
$
590
    
$
674
    
$
2,348
    
$
8,908
    
-
    
$
20,613
  
Special mention
    
-
      
-
      
-
      
-
      
-
      
-
      
39
      
-
      
39
  
Substandard
    
-
      
339
      
-
      
-
      
-
      
98
      
-
      
-
      
437
  
Total Commercial Real Estate Loans
  
$
2,972
    
$
3,187
    
$
2,273
    
$
590
    
$
674
    
$
2,446
    
$
8,947
    
$
-
    
$
21,089
  
                                                                         
Other Commercial Loans:
                                                                        
Current-period Gross writeoffs
  
$
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
   
$
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
    
$
-
  
                                                                         
Residential First Mortgage:
                                                                        
Risk rating
                                                                        
Performing
  
$
557,981
    
$
933,754
    
$
784,511
    
$
368,137
    
$
257,926
    
$
1,228,776
    
$
1,472
    
$
-
    
$
4,132,557
  
Nonperforming
    
-
      
496
      
81
      
844
      
351
      
12,573
      
-
      
-
      
14,345
  
Total First Mortgage:
  
$
557,981
    
$
934,250
    
$
784,592
    
$
368,981
    
$
258,277
    
$
1,241,349
    
$
1,472
    
$
-
    
$
4,146,902
  
                                                                         
Residential First Mortgage Loans:
                                                                        
Current-period Gross writeoffs
  
$
-
      
-
      
-
      
-
      
-
      
5
      
-
      
-
    
$
5
  
   
$
-
      
-
      
-
      
-
      
-
      
5
      
-
      
-
    
$
5
  
                                                                         
Home Equity Lines:
                                                                        
Risk rating
                                                                        
Performing
  
$
6,863
    
$
9,124
    
$
6,322
    
$
7,588
    
$
5,240
    
$
21,217
    
$
-
    
$
-
    
$
56,354
  
Nonperforming
    
-
      
-
      
-
      
-
      
66
      
129
      
-
      
-
      
195
  
Total Home Equity Lines:
  
$
6,863
    
$
9,124
    
$
6,322
    
$
7,588
    
$
5,306
    
$
21,346
    
$
-
    
$
-
    
$
56,549
  
                                                                         
Home Equity Loans:
                                                                        
Current-period Gross writeoffs
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
  
   
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
  
                                                                         
Home Equity Lines of Credit:
                                                                        
Risk rating
                                                                        
Performing
  
$
1,369
    
$
1,246
    
$
740
    
$
52
    
$
100
    
$
18,377
    
$
262,244
    
$
-
    
$
284,128
  
Nonperforming
    
-
      
7
      
-
      
-
      
-
      
2,111
      
186
      
-
      
2,304
  
Total Home Equity Credit Lines:
  
$
1,369
    
$
1,253
    
$
740
    
$
52
    
$
100
    
$
20,488
    
$
262,430
    
$
-
    
$
286,432
  
 
                                                                        
Home Equity Lines of Credit:
                                                                        
Current-period Gross writeoffs
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
19
    
$
-
    
$
-
    
$
19
  
 
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
19
    
$
-
    
$
-
    
$
19
  
 
                                                                        
Installments:
                                                                        
Risk rating
                                                                        
Performing
  
$
6,385
    
$
2,495
    
$
805
    
$
709
    
$
374
    
$
308
    
$
1,125
    
$
-
    
$
12,201
  
Nonperforming
    
20
      
17
      
-
      
65
      
-
      
1
      
3
      
-
      
106
  
Total Installments
  
$
6,405
    
$
2,512
    
$
805
    
$
774
    
$
374
    
$
309
    
$
1,128
    
$
-
    
$
12,307
  
                                                                         
Installments Loans:
                                                                        
Current-period Gross writeoffs
  
$
1
    
$
47
    
$
22
    
$
7
    
$
2
    
$
9
    
$
-
    
$
-
    
$
88
  
   
$
1
    
$
47
    
$
22
    
$
7
    
$
2
    
$
9
    
$
-
    
$
-
    
$
88
  


As of December 31, 2021 the risk category of loans by class of loans was 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, Vermont and Massachusetts.


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


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

 
  
December 31, 2022
  
 
                                    
New York and other states*:
  
30-59
Days
Past Due
    
60-89
Days
Past Due
    
90 +
Days
Past Due
    
Total
30+ days
Past Due
      
Current
    
Total
Loans
  
(dollars in thousands)
                        
 
                                    
Commercial:
                                    
Commercial real estate
  
$
-
      
-
      
161
      
161
      
177,210
      
177,371
  
Other
    
18
      
-
      
20
      
38
      
20,183
      
20,221
  
Real estate mortgage - 1 to 4 family:
                                                
First mortgages
    
4,262
      
921
      
7,203
      
12,386
      
2,764,603
      
2,776,989
  
Home equity loans
    
283
      
-
      
67
      
350
      
43,649
      
43,999
  
Home equity lines of credit
    
978
      
-
      
591
      
1,569
      
190,357
      
191,926
  
Installment
    
78
      
4
      
23
      
105
      
9,303
      
9,408
  
 
                                                
Total
  
$
5,619
      
925
      
8,065
      
14,609
      
3,205,305
      
3,219,914
  

Florida:
  
30-59
Days
Past Due
    
60-89
Days
Past Due
    
90 +
Days
Past Due
    
Total
30+ days
Past Due
      
Current
    
Total
Loans
  
(dollars in thousands)
                        
 
                                    
Commercial:
                                    
Commercial real estate
  
$
-
      
-
      
-
      
-
      
32,551
      
32,551
  
Other
    
-
      
-
      
314
      
314
      
554
      
868
  
Real estate mortgage - 1 to 4 family:
                                                
First mortgages
    
1,183
      
243
      
1,404
      
2,830
      
1,367,083
      
1,369,913
  
Home equity loans
    
51
      
-
      
-
      
51
      
12,499
      
12,550
  
Home equity lines of credit
    
224
      
-
      
-
      
224
      
94,282
      
94,506
  
Installment
    
6
      
-
      
83
      
89
      
2,810
      
2,899
  
 
                                                
Total
  
$
1,464
      
243
      
1,801
      
3,508
      
1,509,779
      
1,513,287
  

Total:
  
30-59
Days
Past Due
    
60-89
Days
Past Due
    
90 +
Days
Past Due
    
Total
30+ days
Past Due
      
Current
    
Total
Loans
  
(dollars in thousands)
                        
 
                                    
Commercial:
                                    
Commercial real estate
  
$
-
      
-
      
161
      
161
      
209,761
      
209,922
  
Other
    
18
      
-
      
334
      
352
      
20,737
      
21,089
  
Real estate mortgage - 1 to 4 family:
                                                
First mortgages
    
5,445
      
1,164
      
8,607
      
15,216
      
4,131,686
      
4,146,902
  
Home equity loans
    
334
      
-
      
67
      
401
      
56,148
      
56,549
  
Home equity lines of credit
    
1,202
      
-
      
591
      
1,793
      
284,639
      
286,432
  
Installment
    
84
      
4
      
106
      
194
      
12,113
      
12,307
  
 
                                                
Total
  
$
7,083
      
1,168
      
9,866
      
18,117
      
4,715,084
      
4,733,201
  


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


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


 
December 31, 2021
  
 
                                    
New York and other states*:
  
30-59
Days
Past Due
    
60-89
Days
Past Due
    
90 +
Days
Past Due
    
Total
30+ days
Past Due
      
Current
    
Total
Loans
  
(dollars in thousands)
                        
 
                                    
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:
  
30-59
Days
Past Due
    
60-89
Days
Past Due
    
90 +
Days
Past Due
    
Total
30+ days
Past Due
      
Current
    
Total
Loans
  
(dollars in thousands)
                        
 
                                    
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:
  
30-59
Days
Past Due
    
60-89
Days
Past Due
    
90 +
Days
Past Due
    
Total
30+ days
Past Due
      
Current
    
Total
Loans
  
(dollars in thousands)
                        
 
                                    
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, 2022 and 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 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, 2022 other real estate owned included $2.1 million of residential foreclosed properties.  In addition, non-accrual residential mortgage loans that were in the process of foreclosure had an amortized cost of $7.4 million as of December 31, 2022. As of December 31, 2021, other real estate owned included $362 thousand of residential foreclosed properties.  In addition, non-accrual residential mortgage loans that were in the process of foreclosure had a recorded investment of $9.7 million as of December 31, 2021.


Loans individually evaluated for impairment are non-accrual loans delinquent greater than 180 days, non-accrual commercial loans, as well as loans classified as troubled debt restructurings. As of December 31, 2022, there was no allowance for credit losses based on loans individually evaluated for impairment. Residential and installment non-accrual loans which are not TDRs or greater than 180 days delinquent 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:

 
  
December 31, 2022
  
(dollars in thousands)
  
New York and
other states*
    
Florida
    
Total
  
Loans in non-accrual status:
                  
Commercial:
                  
Commercial real estate
  
$
199
     $
-
     $
199
  
Other
    
20
      
314
      
334
  
Real estate mortgage - 1 to 4 family:
                        
First mortgages
    
12,609
      
1,736
      
14,345
  
Home equity loans
    
153
      
42
      
195
  
Home equity lines of credit
    
2,187
      
117
      
2,304
  
Installment
    
23
      
83
      
106
  
Total non-accrual loans
    
15,191
      
2,292
      
17,483
  
Restructured real estate mortgages - 1 to 4 family
    
10
      
-
      
10
  
Total nonperforming loans
  
$
15,201
     $
2,292
     $
17,493
  


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


Non-accrual loans as of December 31, 2021 were as follows:

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

 
  
December 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
  
$
160
    
$
39
      
-
  
Other
    
20
      
314
      
-
  
Real estate mortgage - 1 to 4 family:
                        
First mortgages
    
13,502
      
843
      
-
  
Home equity loans
    
129
      
66
      
-
  
Home equity lines of credit
    
2,257
      
47
      
-
  
Installment
    
82
      
24
      
-
  
Total loans, net
  
$
16,150
    
$
1,333
      
-
  


The non-accrual balance of $1.3 million disclosed above was collectively evaluated and the associated allowance for credit losses on loans was not material as of December 31, 2022.


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 December 31, 2022:

 
  
Type of Collateral
  
(dollars in thousands)
                  
 
  
Real Estate
    
Investment
Securities/Cash
    
Other
  
Commercial:
                  
Commercial real estate
  
$
312
      
-
      
-
  
Other
    
334
      
-
      
-
  
Real estate mortgage - 1 to 4 family:
    

     

     

 
First mortgages
    
21,467
      
-
      
-
  
Home equity loans
    
236
      
-
      
-
  
Home equity lines of credit
    
3,264
      
-
      
-
  
Installment
    
82
      
-
      
-
  
Total
 
$
25,695
      
-
      
-
  


Troubled Debt Restructuring Loans


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 years ended December 31, 2022, 2021 and 2020.


A loan for which the terms have been modified, and for which a borrower is experiencing financial difficulties, is considered a TDR and is classified as individually evaluated. TDRs at December 31, 2022 are measured at the amortized cost using the loan’s effective rate at inception or fair value of the underlying collateral if the loan is considered collateral dependent.


As of December 31, 2022 loans individually evaluated included approximately $9.2 million of loans in accruing status that were identified as TDRs.


The following table presents, by class, loans that were modified as TDRs:

 
  
Twelve months ended December 31, 2022
    
Twelve months ended December 31, 2021
    
Year ended 12/31/20
  

                                                     
New York and
other states*:

(dollars in thousands)
  
Number
of
Contracts
    
Pre-Modification
Outstanding
Recorded
Investment
    
Post-Modification
Outstanding
Recorded
Investment
    
Number
of
Contracts
    
Pre-Modification
Outstanding
Recorded
Investment
    
Post-Modification
Outstanding
Recorded
Investment
    
Number
of
Contracts
    
Pre-Modification
Outstanding
Recorded
Investment
    
Post-Modification
Outstanding
Recorded
Investment
  
 
                                                      
Commercial:
                                                      
Commercial real estate
    
-
    
$
-
      
-
      
-
    
$
-
      
-
      
1
    
$
125
      
125
  
Real estate mortgage - 1 to 4 family:
                                                                        
First mortgages
    
11
      
1,587
      
1,587
      
6
      
1,114
      
1,114
      
12
      
2,303
      
2,303
  
Home equity loans
    
-
      
-
      
-
      
1
      
2
      
2
      
-
      
-
      
-
  
Home equity lines of credit
    
-
      
-
      
-
      
2
      
40
      
40
      
3
      
169
      
169
  
 
                                                                        
Total
    
11
    
$
1,587
      
1,587
      
9
    
$
1,156
      
1,156
      
16
    
$
2,597
      
2,597
  

Florida:


(dollars in thousands)
  
Number
of
Contracts
    
Pre-Modification
Outstanding
Recorded
Investment
    
Post-Modification
Outstanding
Recorded
Investment
    
Number
of
Contracts
    
Pre-Modification
Outstanding
Recorded
Investment
    
Post-Modification
Outstanding
Recorded
Investment
    
Number
of
Contracts
    
Pre-Modification
Outstanding
Recorded
Investment
    
Post-Modification
Outstanding
Recorded
Investment
  
 
                                                      
Commercial:
                                                      
Commercial real estate
     -     $
 -       -       -     $
 -       -       -     $
 -       -  
Real estate mortgage - 1 to 4 family:
                                                                        
First mortgages
    
1
    

119
      
119
      
1
    

77
      
77
      
4
    

586
      
586
  
Home equity loans
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Home equity lines of credit
    
-
      
-
      
-
      
1
      
50
      
50
      
-
      
-
      
-
  
 
                                                                        
Total
    
1
    
$
119
      
119
      
2
    
$
127
      
127
      
4
    
$
586
      
586
  


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


The addition of these TDRs 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.


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. In situations involving a borrower filing for Chapter 13 bankruptcy protection, 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.