Loan Portfolio and Allowance for Credit Losses

9 Months Ended

Sep. 30, 2024

Loan Portfolio and Allowance for Credit Losses [Abstract]

Loan Portfolio and Allowance for Credit Losses

(5) Loan Portfolio and Allowance for Credit Losses

The following tables presents loans by portfolio segment:

	September 30, 2024
(dollars in thousands)	New York and
	other states*		Florida		Total
Commercial:
Commercial real estate	$	220,645	$	38,918	$	259,563
Other		19,934		764		20,698
Real estate mortgage - 1 to 4 family:
First mortgages		2,746,180		1,579,684		4,325,864
Home equity loans		43,501		13,309		56,810
Home equity lines of credit		231,275		162,143		393,418
Installment		10,459		4,044		14,503
Total loans, net	$	3,271,994	$	1,798,862	$	5,070,856
Less: Allowance for credit losses						49,950
Net loans					$	5,020,906

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

	December 31, 2023
(dollars in thousands)	New York and
	other states*		Florida		Total
Commercial:
Commercial real estate	$	212,754	$	39,501	$	252,255
Other		20,863		397		21,260
Real estate mortgage - 1 to 4 family:
First mortgages		2,756,914		1,550,191		4,307,105
Home equity loans		44,152		13,806		57,958
Home equity lines of credit		212,298		135,117		347,415
Installment		12,057		4,829		16,886
Total loans, net	$	3,259,038	$	1,743,841		5,002,879
Less: Allowance for credit losses						48,578
Net loans					$	4,954,301

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

Included in commercial loans above are Paycheck Protection Program (“PPP”) loans totaling $292 thousand and $620 thousand as of September 30, 2024 and December 31, 2023, respectively.

At September 30, 2024 and December 31, 2023, the Company had approximately $24.7 million and $29.1 million, respectively, of real estate construction loans.  Of the $24.7 million in real estate construction loans at September 30, 2024, approximately $7.9 million are secured by first mortgages to residential borrowers while approximately $16.8 million were to commercial borrowers for residential construction projects.  Of the $29.1 million in real estate construction loans at December 31, 2023, approximately $8.0 million are secured by first mortgages to residential borrowers while approximately $21.1 million were to commercial borrowers for residential construction projects.  The vast majority of construction loans were 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 and current conditions. There were no changes in the Company’s methodology for the allowance for credit losses on loans for the period ended September 30, 2024. The Company selected the baseline economic forecast for the allowance for credit losses based on current market conditions and portfolio trends. In addition, the Company’s four quarter forecast period and four quarter straight line reversion has not changed for the period ended September 30, 2024.

The Company recorded a provision for credit losses of $500 thousand for the three months ended September 30, 2024, which is the result a provision for credit losses on loans of $400 thousand, and a provision for credit losses on unfunded commitments of $100 thousand.  The Company recorded a provision for credit losses of $1.6 million for the nine months ended September 30, 2024, which is the result of a provision for credit losses on loans of $1.5 million, and a provision for credit losses on unfunded commitments of $100 thousand.

The Company recorded a provision for credit losses of $100 thousand for the three months ended September 30, 2023, which included a provision for credit losses on loans of $300 thousand, and a benefit for credit losses on unfunded commitments of $200 thousand.  The Company recorded a benefit for credit losses of $100 thousand for the nine months ended September 30, 2023, which included a provision for credit losses on loans of $900 thousand, offset by a benefit for credit losses on unfunded commitments of $1.0 million.

Activity in the allowance for credit losses on loans by portfolio segment for the three months ended September 30, 2024 is summarized as follows:

	For the three months ended September 30, 2024
(dollars in thousands)				Real Estate
				Mortgage-
	Commercial			1 to 4 Family		Installment		Total
Balance at beginning of period	$	3,429		$	46,129	$	214	$	49,772
Loans charged off:
New York and other states*		65			194		17		276
Florida		-			-		42		42
Total loan chargeoffs		65			194		59		318
Recoveries of loans previously charged off:
New York and other states*		-			90		6		96
Florida		-			-		-		-
Total recoveries		-			90		6		96
Net loans (recoveries) charged off		65			104		53		222
Provision (credit) for credit losses		(12	)		367		45		400
Balance at end of period	$	3,352		$	46,392	$	206	$	49,950

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

Activity in the allowance for credit losses by portfolio segment for the three months ended September 30, 2023 is summarized as follows:

	For the three months ended September 30, 2023
(dollars in thousands)			Real Estate
			Mortgage-
	Commercial		1 to 4 Family			Installment		Total
Balance at beginning of period	$	2,610		44,067			237		46,914
Loans charged off:
New York and other states*		-		27			23		50
Florida		-		-			-		-
Total loan chargeoffs		-		27			23		50
Recoveries of loans previously charged off:
New York and other states*		-		53			9		62
Florida		-		-			-		-
Total recoveries		-		53			9		62
Net loan (recoveries) charged off		-		(26	)		14		(12	)
Provision for credit losses		103		192			5		300
Balance at end of period	$	2,713		44,285			228		47,226

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

Activity in the allowance for credit losses on loans by portfolio segment for the nine months ended September 30, 2024 is summarized as follows:

	For the nine months ended September 30, 2024
(dollars in thousands)			Real Estate
			Mortgage-
	Commercial		1 to 4 Family			Installment		Total
Balance at beginning of period	$	2,735	$	45,625		$	218	$	48,578
Loans charged off:
New York and other states*		65		311			71		447
Florida		-		17			49		66
Total loan chargeoffs		65		328			120		513
Recoveries of loans previously charged off:
New York and other states*		-		359			26		385
Florida		-		-			-		-
Total recoveries		-		359			26		385
Net loans (recoveries) charged off		65		(31	)		94		128
Provision for credit losses		682		736			82		1,500
Balance at end of period	$	3,352	$	46,392		$	206	$	49,950

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

Activity in the allowance for credit losses by portfolio segment for the nine months ended September 30, 2023 is summarized as follows:

	For the nine months ended September 30, 2023
(dollars in thousands)				Real Estate
				Mortgage-
	Commercial			1 to 4 Family			Installment		Total
Balance at beginning of period	$	2,596		$	43,271		$	165	$	46,032
Loans charged off:
New York and other states*		-			49			69		118
Florida		-			-			71		71
Total loan chargeoffs		-			49			140		189
Recoveries of loans previously charged off:
New York and other states*		129			289			40		458
Florida		-			25			-		25
Total recoveries		129			314			40		483
Net loans (recoveries) charged off		(129	)		(265	)		100		(294	)
(Credit) provision for credit losses		(12	)		749			163		900
Balance at end of period	$	2,713		$	44,285		$	228	$	47,226

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

The following tables present the balance in the allowance for credit losses on loans by portfolio segment and based on impairment evaluation as of September 30, 2024 and December 31, 2023:

	As of September 30, 2024
(dollars in thousands)			1-to-4 Family
	Commercial		Residential		Installment
	Loans		Real Estate		Loans		Total
Allowance for credit losses on loans:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	-	$	-	$	-	$	-
Collectively evaluated for impairment		3,352		46,392		206		49,950
Total ending allowance balance	$	3,352	$	46,392	$	206	$	49,950
Loans:
Individually evaluated for impairment	$	882	$	24,043	$	130	$	25,055
Collectively evaluated for impairment		279,379		4,752,049		14,373		5,045,801
Total ending loans balance	$	280,261	$	4,776,092	$	14,503	$	5,070,856

	As of December 31, 2023
(dollars in thousands)			1-to-4 Family
	Commercial		Residential		Installment
	Loans		Real Estate		Loans		Total
Allowance for credit losses on loans:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	-		-		-		-
Collectively evaluated for impairment		2,735		45,625		218		48,578
Total ending allowance balance	$	2,735		45,625		218		48,578
Loans:
Individually evaluated for impairment	$	957		23,628		144		24,729
Collectively evaluated for impairment		272,558		4,688,850		16,742		4,978,150
Total ending loans balance	$	273,515		4,712,478		16,886		5,002,879

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 provision (credit) for credit losses in the consolidated income statement.

The Company’s activity in the allowance for credit losses on unfunded commitments for the three and nine months ended September 30, 2024 and 2023 was as follows:

(In thousands)	For the three months ended September 30, 2024
Balance at June 30, 2024	$	1,662
Provision for credit losses		100
Balance at September 30, 2024	$	1,762

(In thousands)	For the nine months ended September 30, 2024
Balance at January 1, 2024	$	1,662
Provision for credit losses		100
Balance at September 30, 2024	$	1,762

(In thousands)	For the three months ended September 30, 2023
Balance at June 30, 2023	$	2,112
Credit provision for credit losses		(200	)
Balance at September 30, 2023	$	1,912

(In thousands)	For the nine months ended September 30, 2023
Balance at January 1, 2023	$	2,912
Credit provision for credit losses		(1,000	)
Balance at September 30, 2023	$	1,912

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 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 loans, 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 September 30, 2024 and December 31, 2023 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 September 30, 2024 and December 31, 2023 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:

(in thousands)	As of September 30, 2024
	Term Loans Amortized Cost Basis by Origination Year
	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Revolving Loan Converted to Term		Total
Commercial :
Risk rating
Pass	$	34,827	$	54,126	$	75,176	$	22,445	$	15,425	$	52,536	$	2,801	$	-	$	257,336
Special Mention		-		-		1,070		-		26		524		-		-		1,620
Substandard		-		-		190		-		-		379		-		-		569
Doubtful		-		-		-		-		-		38		-		-		38
Total Commercial Loans	$	34,827	$	54,126	$	76,436	$	22,445	$	15,451	$	53,477	$	2,801	$	-	$	259,563
Commercial Loans:
Current-period Gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Commercial Other:
Risk rating
Pass	$	1,573	$	7,627	$	1,890	$	517	$	265	$	1,745	$	6,201	$	-	$	19,818
Special mention		14		-		-		-		-		37		-		-		51
Substandard		-		-		-		132		-		98		285		-		515
Doubtful		-		-		-		314		-		-		-		-		314
Total Commercial Real Estate Loans	$	1,587	$	7,627	$	1,890	$	963	$	265	$	1,880	$	6,486	$	-	$	20,698
Other Commercial Loans:
Current-period Gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Residential First Mortgage:
Risk rating
Performing	$	227,310	$	409,174	$	543,602	$	835,847	$	694,291	$	1,600,046	$	710	$	-	$	4,310,980
Nonperforming		-		553		210		534		243		13,344		-		-		14,884
Total First Mortgage:	$	227,310	$	409,727	$	543,812	$	836,381	$	694,534	$	1,613,390	$	710	$	-	$	4,325,864
Residential First Mortgage Loans:
Current-period Gross writeoffs	$	193	$	-	$	-	$	-	$	-	$	19	$	-	$	-	$	212
	$	193	$	-	$	-	$	-	$	-	$	19	$	-	$	-	$	212
Home Equity Loans:
Risk rating
Performing	$	4,777	$	8,972	$	5,446	$	6,837	$	5,180	$	25,066	$	-	$	-	$	56,278
Nonperforming		-		-		155		-		-		377		-		-		532
Total Home Equity Loans:	$	4,777	$	8,972	$	5,601	$	6,837	$	5,180	$	25,443	$	-	$	-	$	56,810
Home Equity Loans:
Current-period Gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Home Equity Lines of Credit:
Risk rating
Performing	$	4,171	$	1,218	$	1,160	$	668	$	227	$	14,127	$	368,767	$	-	$	390,338
Nonperforming		-		-		-		-		-		2,753		327		-		3,080
Total Home Equity Credit Lines:	$	4,171	$	1,218	$	1,160	$	668	$	227	$	16,880	$	369,094	$	-	$	393,418
Home Equity Lines of Credit:
Current-period Gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	116	$	-	$	-	$	116
	$	-	$	-	$	-	$	-	$	-	$	116	$	-	$	-	$	116
Installments:
Risk rating
Performing	$	2,313	$	6,296	$	3,141	$	856	$	168	$	606	$	955	$	-	$	14,335
Nonperforming		-		5		60		54		-		49		-		-		168
Total Installments	$	2,313	$	6,301	$	3,201	$	910	$	168	$	655	$	955	$	-	$	14,503
Installments Loans:
Current-period Gross writeoffs	$	-	$	54	$	44	$	-	$	4	$	18	$	-	$	-	$	120
	$	-	$	54	$	44	$	-	$	4	$	18	$	-	$	-	$	120

(in thousands)	As of December 31, 2023
	Term Loans Amortized Cost Basis by Origination Year
Commercial :	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Revolving Loan Converted to Term		Total
Risk rating
Pass	$	61,148	$	82,339	$	23,940	$	16,653	$	19,835	$	41,153	$	5,664	$	-	$	250,732
Special Mention		-		-		-		42		-		225		-		-		267
Substandard		-		-		-		-		-		1,256		-		-		1,256
Total Commercial Loans	$	61,148	$	82,339	$	23,940	$	16,695	$	19,835	$	42,634	$	5,664	$	-	$	252,255
Commercial Loans:
Current-period Gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Commercial Other:
Risk rating
Pass	$	7,873	$	2,164	$	1,933	$	1,386	$	321	$	2,641	$	4,482	$	-	$	20,800
Special mention		-		-		-		-		-		-		34		-		34
Substandard		-		-		328		-		-		98		-		-		426
Total Commercial Real Estate Loans	$	7,873	$	2,164	$	2,261	$	1,386	$	321	$	2,739	$	4,516	$	-	$	21,260
Other Commercial Loans:
Current-period Gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-		-
	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Residential First Mortgage:
Risk rating
Performing	$	418,891	$	566,617	$	878,015	$	732,851	$	342,559	$	1,354,867	$	-	$	-	$	4,293,800
Nonperforming		64		210		383		229		1,119		11,300		-		-		13,305
Total First Mortgage:	$	418,955	$	566,827	$	878,398	$	733,080	$	343,678	$	1,366,167	$	-	$	-	$	4,307,105
Residential First Mortgage Loans:
Current-period Gross writeoffs	$	-	$	-	$	-	$	-	$	27	$	336	$	-	$	-		363
	$	-	$	-	$	-	$	-	$	27	$	336	$	-	$	-	$	363
Home Equity Loans:
Risk rating
Performing	$	9,660	$	5,963	$	7,770	$	5,668	$	6,542	$	22,076	$	-	$	-	$	57,679
Nonperforming		-		-		-		-		-		279		-		-		279
Total Home Equity Loans:	$	9,660	$	5,963	$	7,770	$	5,668	$	6,542	$	22,355	$	-	$	-	$	57,958
Home Equity Lines Loans:
Current-period Gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-		-
	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Home Equity Credit Lines:
Risk rating
Performing	$	355	$	641	$	248	$	75	$	10	$	15,964	$	327,059	$	-	$	344,352
Nonperforming		-		-		8		56		-		2,813		186		-		3,063
Total Home Equity Credit Lines:	$	355	$	641	$	256	$	131	$	10	$	18,777	$	327,245	$	-	$	347,415
Home Equity Credit Lines Loans:
Current-period Gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	8	$	-	$	-		8
	$	-	$	-	$	-	$	-	$	-	$	8	$	-	$	-	$	8
Installments:
Risk rating
Performing	$	8,473	$	4,592	$	1,484	$	360	$	198	$	605	$	1,008	$	-	$	16,720
Nonperforming		-		49		51		-		63		3		-		-		166
Total Installments	$	8,473	$	4,641	$	1,535	$	360	$	261	$	608	$	1,008	$	-	$	16,886
Installments Loans:
Current-period Gross writeoffs	$	16	$	67	$	50	$	1	$	21	$	21	$	-	$	-		176
	$	16	$	67	$	50	$	1	$	21	$	21	$	-	$	-	$	176

The following tables present the aging of the amortized cost in past due loans by loan class and by region as of September 30, 2024 and December 31, 2023:

	As of September 30, 2024
New York and other states*:	30-59		60-89		90+		Total
	Days		Days		Days		30+ days				Total
(dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Loans
Commercial:
Commercial real estate	$	827	$	190	$	153	$	1,170	$	219,475	$	220,645
Other		8		-		123		131		19,803		19,934
Real estate mortgage - 1 to 4 family:
First mortgages		3,638		1,701		5,728		11,067		2,735,113		2,746,180
Home equity loans		15		-		340		355		43,146		43,501
Home equity lines of credit		379		310		1,339		2,028		229,247		231,275
Installment		12		24		119		155		10,304		10,459
Total	$	4,879	$	2,225	$	7,802	$	14,906	$	3,257,088	$	3,271,994

Florida:	30-59		60-89		90+		Total
	Days		Days		Days		30+ days				Total
(dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Loans
Commercial:
Commercial real estate	$	-	$	-	$	-	$	-	$	38,918	$	38,918
Other		-		-		314		314		450		764
Real estate mortgage - 1 to 4 family:
First mortgages		1,832		209		1,588		3,629		1,576,055		1,579,684
Home equity loans		-		85		6		91		13,218		13,309
Home equity lines of credit		217		-		70		287		161,856		162,143
Installment		24		1		-		25		4,019		4,044
Total	$	2,073	$	295	$	1,978	$	4,346	$	1,794,516	$	1,798,862

Total:	30-59		60-89		90+		Total
	Days		Days		Days		30+ days				Total
(dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Loans
Commercial:
Commercial real estate	$	827	$	190	$	153	$	1,170	$	258,393	$	259,563
Other		8		-		437		445		20,253		20,698
Real estate mortgage - 1 to 4 family:
First mortgages		5,470		1,910		7,316		14,696		4,311,168		4,325,864
Home equity loans		15		85		346		446		56,364		56,810
Home equity lines of credit		596		310		1,409		2,315		391,103		393,418
Installment		36		25		119		180		14,323		14,503
Total	$	6,952	$	2,520	$	9,780	$	19,252	$	5,051,604	$	5,070,856

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

	As of December 31, 2023
New York and other states*:	30-59		60-89		90+		Total
	Days		Days		Days		30+ days				Total
(dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Loans
Commercial:
Commercial real estate	$	-		-		521		521		212,233		212,754
Other		-		26		-		26		20,837		20,863
Real estate mortgage - 1 to 4 family:
First mortgages		4,330		811		6,008		11,149		2,745,765		2,756,914
Home equity loans		20		138		157		315		43,837		44,152
Home equity lines of credit		591		135		1,499		2,225		210,073		212,298
Installment		6		18		95		119		11,938		12,057
Total	$	4,947		1,128		8,280		14,355		3,244,683		3,259,038

Florida:	30-59		60-89		90+		Total
	Days		Days		Days		30+ days				Total
(dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Loans
Commercial:
Commercial real estate	$	-		-		-		-		39,501		39,501
Other		-		-		314		314		83		397
Real estate mortgage - 1 to 4 family:
First mortgages		1,290		78		1,433		2,801		1,547,390		1,550,191
Home equity loans		73		6		-		79		13,727		13,806
Home equity lines of credit		184		-		56		240		134,877		135,117
Installment		16		-		60		76		4,753		4,829
Total	$	1,563		84		1,863		3,510		1,740,331		1,743,841

Total:	30-59		60-89		90+		Total
	Days		Days		Days		30+ days				Total
(dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Loans
Commercial:
Commercial real estate	$	-		-		521		521		251,734		252,255
Other		-		26		314		340		20,920		21,260
Real estate mortgage - 1 to 4 family:
First mortgages		5,620		889		7,441		13,950		4,293,155		4,307,105
Home equity loans		93		144		157		394		57,564		57,958
Home equity lines of credit		775		135		1,555		2,465		344,950		347,415
Installment		22		18		155		195		16,691		16,886
Total	$	6,510		1,212		10,143		17,865		4,985,014		5,002,879

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

At September 30, 2024 and December 31, 2023, 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 foreclosure or through a deed in lieu).  Other real estate owned is included in other assets on the Balance Sheet.  As of September 30, 2024 other real estate owned included $2.2 million and $295 thousand of commercial and residential foreclosed properties, respectively.  In addition, non-accrual residential mortgage loans that are in the process of foreclosure had an amortized cost of $6.4 million as of September 30, 2024. As of December 31, 2023 other real estate owned included $194 thousand of residential foreclosed properties.  In addition, non-accrual residential mortgage loans that are in the process of foreclosure had a recorded investment of $6.6 million as of December 31, 2023.

Loans individually evaluated for impairment include are non-accrual loans delinquent great than 180 days, non-accrual commercial loans, as well as all loan modifications. As of September 30, 2024, there was no allowance for credit losses based on loans individually evaluated for impairment.

Residential and installment non-accrual loans which are not loan modifications 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:

	As of September 30, 2024
(dollars in thousands)	New York and
	other states*		Florida		Total
Loans in non-accrual status:
Commercial:
Commercial real estate	$	343	$	-	$	343
Other		123		314		437
Real estate mortgage - 1 to 4 family:
First mortgages		11,999		2,885		14,884
Home equity loans		437		95		532
Home equity lines of credit		2,884		196		3,080
Installment		163		5		168
Total non-accrual loans		15,949		3,495		19,444
Restructured real estate mortgages - 1 to 4 family		-		-		-
Total nonperforming loans	$	15,949	$	3,495	$	19,444

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

	As of December 31, 2023
(dollars in thousands)	New York and
	other states*		Florida		Total
Loans in non-accrual status:
Commercial:
Commercial real estate	$	536	$	-	$	536
Other		-		314		314
Real estate mortgage - 1 to 4 family:
First mortgages		11,324		1,981		13,305
Home equity loans		235		44		279
Home equity lines of credit		2,816		247		3,063
Installment		151		15		166
Total non-accrual loans		15,062		2,601		17,663
Restructured real estate mortgages - 1 to 4 family		3		-		3
Total nonperforming loans	$	15,065	$	2,601	$	17,666

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

The following tables present the amortized cost basis of loans on non-accrual status and loans past due over 89 days still accruing as of September 30, 2024 and December 31, 2023:

	As of September 30, 2024
(dollars in thousands)	Non-accrual With		Non-accrual With		Loans Past Due
	No Allowance for		Allowance for		Over 89 Days
	Credit Loss		Credit Loss		Still Accruing
Commercial:
Commercial real estate	$	153	$	190		-
Other		437		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		13,438		1,446		-
Home equity loans		412		120		-
Home equity lines of credit		2,710		370		-
Installment		128		40		-
Total loans, net	$	17,278	$	2,166		-

	As of December 31, 2023
(dollars in thousands)	Non-accrual With		Non-accrual With		Loans Past Due
	No Allowance for		Allowance for		Over 89 Days
	Credit Loss		Credit Loss		Still Accruing
Commercial:
Commercial real estate	$	536	$	-		-
Other		314		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		12,584		721		-
Home equity loans		271		8		-
Home equity lines of credit		2,395		668		-
Installment		144		22		-
Total loans, net	$	16,244	$	1,419		-

The non-accrual balance of $2.2 million and $1.4 million was collectively evaluated and the associated allowance for credit losses on loans was determined not to be material as of September 30, 2024 and December 31, 2023, respectively.

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 tables present the amortized cost basis of individually analyzed collateral dependent loans by portfolio segment as of September 30, 2024 and December 31, 2023:

	As of September 30, 2024
	Type of Collateral
(dollars in thousands)
	Real Estate		Investment Securities/Cash		Other
Commercial:
Commercial real estate	$	445		-		-
Other		437		-		-
Real estate mortgage - 1 to 4 family:		-		-		-
First mortgages		20,255		-		-
Home equity loans		421		-		-
Home equity lines of credit		3,367		-		-
Installment		130		-		-
Total	$	25,055		-		-

	As of December 31, 2023
	Type of Collateral
(dollars in thousands)
	Real Estate		Investment Securities/Cash		Other
Commercial:
Commercial real estate	$	643		-		-
Other		314		-		-
Real estate mortgage - 1 to 4 family:		-		-		-
First mortgages		20,018		-		-
Home equity loans		371		-		-
Home equity lines of credit		3,239		-		-
Installment		144		-		-
Total	$	24,729		-		-

The Company has not committed to lend additional amounts to customers with outstanding loans that are modified.  Interest income recognized on loans that are individually evaluated was not material during the three or nine months ended September 30, 2024 and 2023.

As of September 30, 2024 and 2023 loans individually evaluated included approximately $7.3 and $8.5 million, respectively, of loans in accruing status that were identified as loan modifications in accordance with regulatory guidance related to Chapter 7 bankruptcy loans.

Pursuant to the adoption of ASU 2022-02 - Financial Instruments - Credit Losses (Topic 326) Troubled Debt Restructuring and Vintage Disclosures (“ASU 2022-02”), a borrower that is experiencing financial difficulty and receives a modification in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay or a term extension in the current period needs to be disclosed.

The following table presents the amortized cost basis of loans at September 30, 2024 and 2023 that were both experiencing financial difficulty and modified during the three and nine months ended September 30, 2024 and 2023, by class and by type of modification.  The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financing receivable is also presented below:

For the three months ended:
New York and other states*:	September 30, 2024					September 30, 2023
	Payment		% of Total Class			Payment		% of Total Class
(dollars in thousands)	Delay		of Loans			Delay		of Loans
Commercial:
Commercial real estate	$	-		-		$	-		-
Other		-		-			-		-
Real estate mortgage - 1 to 4 family:		-		-			-		-
First mortgages		80		0.00	%		255		0.01	%
Home equity loans		-		-			-		-
Home equity lines of credit		133		0.06	%		-		-
Installment		-		-			-		-
Total	$	213		0.01	%	$	255		0.01	%

Florida:
	Payment		% of Total Class			Payment		% of Total Class
(dollars in thousands)	Delay		of Loans			Delay		of Loans
Commercial:
Commercial real estate	$	-		-		$	-		-
Other		-		-			-		-
Real estate mortgage - 1 to 4 family:				-					-
First mortgages		-		-			-		-
Home equity loans		89		0.67	%		-		-
Home equity lines of credit		-		-			-		-
Installment		-		-			-		-
Total	$	89		0.00	%	$	-		-

Total
	Payment		% of Total Class			Payment		% of Total Class
(dollars in thousands)	Delay		of Loans			Delay		of Loans
Commercial:
Commercial real estate	$	-		-		$	-		-
Other		-		-			-		-
Real estate mortgage - 1 to 4 family:
First mortgages		80		0.00	%		255		0.01	%
Home equity loans		89		0.16	%		-		-
Home equity lines of credit		133		0.03	%		-		-
Installment		-		-			-		-
Total	$	302		0.01	%	$	255		0.01	%

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

For the nine months ended:
New York and other states*:	September 30, 2024					September 30, 2023
	Payment		% of Total Class			Payment		% of Total Class
(dollars in thousands)	Delay		of Loans			Delay		of Loans
Commercial:
Commercial real estate	$	-		-		$	-		-
Other		-		-			-		-
Real estate mortgage - 1 to 4 family:		-		-			-		-
First mortgages		270		0.01	%		490		0.02	%
Home equity loans		-		-			-		-
Home equity lines of credit		242		0.10	%		50		0.02	%
Installment		-		-			-		-
Total	$	512		0.02	%	$	540		0.02	%

Florida:
	Payment		% of Total Class			Payment		% of Total Class
(dollars in thousands)	Delay		of Loans			Delay		of Loans
Commercial:
Commercial real estate	$	-		-		$	-		-
Other		-		-			-		-
Real estate mortgage - 1 to 4 family:				-					-
First mortgages		84		0.01	%		340		0.02	%
Home equity loans		89		0.67	%		-		-
Home equity lines of credit		-		-			-		-
Installment		-		-			-		-
Total	$	173		0.01	%	$	340		0.02	%

Total
	Payment		% of Total Class			Payment		% of Total Class
(dollars in thousands)	Delay		of Loans			Delay		of Loans
Commercial:
Commercial real estate	$	-		-		$	-		-
Other		-		-			-		-
Real estate mortgage - 1 to 4 family:
First mortgages		354		0.01	%		830		0.02	%
Home equity loans		89		0.16	%		-		-
Home equity lines of credit		242		0.06	%		50		0.02	%
Installment		-		-			-		-
Total	$	685		0.01	%	$	880		0.02	%

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

The Bank monitors the performance of loans modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table describes the performance of loans that have been modified as of September 30, 2024 and 2023:

	As of September 30, 2024
New York and other states*:				30-59		60-89		90+
				Days		Days		Days
(dollars in thousands)	Current			Past Due		Past Due		Past Due	Total
Commercial:
Commercial real estate	$	-	$	-	$	-	$	-	$	-
Other		-		-		-		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		270		-		-		-		270
Home equity loans		-		-		-		-		-
Home equity lines of credit		242		-		-		-		242
Installment		-		-		-		-		-
Total	$	512	$	-	$	-	$	-	$	512

Florida:				30-59		60-89		90+
				Days		Days		Days
(dollars in thousands)	Current			Past Due		Past Due		Past Due	Total
Commercial:
Commercial real estate	$	-	$	-	$	-	$	-	$	-
Other		-		-		-		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		84		-		-		-		84
Home equity loans		89		-		-		-		89
Home equity lines of credit		-		-		-		-		-
Installment		-		-		-		-		-
Total	$	173	$	-	$	-	$	-	$	173

Total				30-59		60-89		90+
				Days		Days		Days
(dollars in thousands)	Current			Past Due		Past Due		Past Due	Total
Commercial:
Commercial real estate	$	-	$	-	$	-	$	-	$	-
Other		-		-		-		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		354		-		-		-		354
Home equity loans		89		-		-		-		89
Home equity lines of credit		242		-		-		-		242
Installment		-		-		-		-		-
Total	$	685	$	-	$	-	$	-	$	685

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

	As of September 30, 2023
New York and other states*:				30-59		60-89		90+
				Days		Days		Days
(dollars in thousands)	Current			Past Due		Past Due		Past Due	Total
Commercial:
Commercial real estate	$	-	$	-	$	-	$	-	$	-
Other		-		-		-		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		351		139		-		-		490
Home equity loans		-		-		-		-		-
Home equity lines of credit		50		-		-		-		50
Installment		-		-		-		-		-
Total	$	401	$	139	$	-	$	-	$	540

Florida:				30-59		60-89		90+
				Days		Days		Days
(dollars in thousands)	Current			Past Due		Past Due		Past Due	Total
Commercial:
Commercial real estate	$	-	$	-	$	-	$	-	$	-
Other		-		-		-		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		340		-		-		-		340
Home equity loans		-		-		-		-		-
Home equity lines of credit		-		-		-		-		-
Installment		-		-		-		-		-
Total	$	340	$	-	$	-	$	-	$	340

Total				30-59		60-89		90+
				Days		Days		Days
(dollars in thousands)	Current			Past Due		Past Due		Past Due	Total
Commercial:
Commercial real estate	$	-	$	-	$	-	$	-	$	-
Other		-		-		-		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		691		139		-		-		830
Home equity loans		-		-		-		-		-
Home equity lines of credit		50		-		-		-		50
Installment		-		-		-		-		-
Total	$	741	$	139	$	-	$	-	$	880

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

The following tables describes the financial effect of the modifications made to borrowers experiencing financial difficulty for the three and nine months ended September 30, 2024 and 2023:

For the three months ended:
	September 30, 2024		September 30, 2023
	Weighted		Weighted
New York and other states*:	Average		Average
	Payment		Payment
(dollars in thousands)	Delay (Months)		Delay (Months)
Commercial:
Commercial real estate		-		-
Other		-		-
Real estate mortgage - 1 to 4 family:		-		-
First mortgages		22		18
Home equity loans		-		-
Home equity lines of credit		12		-
Installment		-		-
Total		34		18

	Weighted		Weighted
Florida:	Average		Average
	Payment		Payment
(dollars in thousands)	Delay (Months)		Delay (Months)
Commercial:
Commercial real estate		-		-
Other		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		-		-
Home equity loans		9		-
Home equity lines of credit		-		-
Installment		-		-
Total		9		0

	Weighted		Weighted
	Average		Average
	Payment		Payment
(dollars in thousands)	Delay (Months)		Delay (Months)
Commercial:
Commercial real estate		-		-
Other		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		22		18
Home equity loans		9		-
Home equity lines of credit		12		-
Installment		-		-
Total		43		18

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

For the nine months ended:
	September 30, 2024		September 30, 2023
	Weighted		Weighted
New York and other states*:	Average		Average
	Payment		Payment
(dollars in thousands)	Delay (Months)		Delay (Months)
Commercial:
Commercial real estate		-		-
Other		-		-
Real estate mortgage - 1 to 4 family:		-		-
First mortgages		15		20
Home equity loans		-		-
Home equity lines of credit		18		18
Installment		-		-
Total		33		38

	Weighted		Weighted
Florida:	Average		Average
	Payment		Payment
(dollars in thousands)	Delay (Months)		Delay (Months)
Commercial:
Commercial real estate		-		-
Other		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		12		24
Home equity loans		9		-
Home equity lines of credit		-		-
Installment		-		-
Total		21		24

	Weighted		Weighted
	Average		Average
	Payment		Payment
(dollars in thousands)	Delay (Months)		Delay (Months)
Commercial:
Commercial real estate		-		-
Other		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		27		44
Home equity loans		9		-
Home equity lines of credit		18		18
Installment		-		-
Total		54		62

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

The addition of these loan modifications 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 loan modification was the borrower filing for bankruptcy protection. There were no loans that defaulted during the three and nine months ended September 30, 2024 and 2023 which had been classified as a loan modification within the prior 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 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.