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LOANS AND CREDIT QUALITY
 6 Months Ended
Jun. 30, 2023
Receivables [Abstract]  
LOANS AND CREDIT QUALITY LOANS AND CREDIT QUALITY:
The Company's LHFI is divided into two portfolio segments, commercial loans and consumer loans. Within each portfolio segment, the Company monitors and assesses credit risk based on the risk characteristics of each of the following loan classes: non-owner occupied commercial real estate ("CRE"), multifamily, construction and land development, owner occupied CRE and commercial business loans within the commercial loan portfolio segment and single family and home equity and other loans within the consumer loan portfolio segment. LHFI consists of the following:
(in thousands)At June 30, 2023At December 31, 2022
CRE
Non-owner occupied CRE$650,710 $658,085 
Multifamily3,966,894 3,975,754 
Construction/land development576,432 627,663 
Total5,194,036 5,261,502 
Commercial and industrial loans
Owner occupied CRE434,400 443,363 
Commercial business371,779 359,747 
Total
806,179 803,110 
Consumer loans
Single family1,068,229 1,009,001 
Home equity and other368,207 352,707 
Total (1)
1,436,436 1,361,708 
Total LHFI 7,436,651 7,426,320 
Allowance for credit losses ("ACL")(41,500)(41,500)
Total LHFI less ACL
$7,395,151 $7,384,820 
(1)    Includes $1.3 million and $5.9 million at June 30, 2023 and December 31, 2022, respectively, of loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes in fair value recognized in the consolidated income statements.

Loans totaling $5.8 billion and $5.2 billion at June 30, 2023 and December 31, 2022, respectively, were pledged to secure borrowings from the Federal Home Loan Bank ("FHLB") and loans totaling $589 million and $497 million at June 30, 2023 and December 31, 2022, respectively, were pledged to secure borrowings from the Federal Reserve Bank of San Francisco ("FRBSF").

Credit Risk Concentrations

LHFI are primarily secured by real estate located in the Pacific Northwest, California and Hawaii. At June 30, 2023, single family and multifamily loans in the state of Washington and California, represented 10% and 36% of the total LHFI portfolio, respectively. At December 31, 2022, multifamily loans in the state of California represented 36% of the total LHFI portfolio.

Credit Quality
Management considers the level of ACL to be appropriate to cover credit losses expected over the life of the loans for the LHFI portfolio. The cumulative loss rate used as the basis for the estimate of credit losses is comprised of the Bank’s historical loss experience and eight qualitative factors for current and forecasted periods.
As of June 30, 2023, the historical expected loss rates decreased when compared to December 31, 2022 due to product mix risk composition changes. During the second quarter of 2023, the qualitative factors decreased due to the continued favorable performance of our loan portfolio. As of June 30, 2023, the Bank expects deterioration in collateral values and economic conditions over the two-year forecast period in the markets in which it operates.
In addition to the ACL for LHFI, the Company maintains a separate allowance for unfunded loan commitments which is included in accounts payable and other liabilities on our consolidated balance sheets. The allowance for unfunded commitments was $1.7 million and $2.2 million at June 30, 2023 and December 31, 2022, respectively.
The Bank has elected to exclude accrued interest receivable from the evaluation of the ACL. Accrued interest on LHFI was $27.0 million and $26.9 million at June 30, 2023 and December 31, 2022, respectively, and was reported in other assets in the consolidated balance sheets.
Activity in the ACL for LHFI and the allowance for unfunded commitments was as follows:
 Quarter Ended June 30,Six Months Ended June 30,
(in thousands)2023202220232022
Beginning balance
$41,500 $37,944 $41,500 $47,123 
Provision for credit losses111 (216)700 (9,439)
Net (charge-offs) recoveries(111)(373)(700)(329)
Ending balance$41,500 $37,355 $41,500 $37,355 
Allowance for unfunded commitments:
Beginning balance$2,201 $2,627 $2,197 $2,404 
Provision for credit losses(480)216 (476)439 
Ending balance$1,721 $2,843 $1,721 $2,843 
Provision for credit losses:
Allowance for credit losses - loans$111 $(216)$700 $(9,439)
Allowance for unfunded commitments(480)216 (476)439 
Total$(369)$— $224 $(9,000)
Activity in the ACL for LHFI by loan portfolio and loan sub-class was as follows:

Quarter Ended June 30, 2023
(in thousands)Beginning balanceCharge-offsRecoveriesProvision Ending balance
CRE
Non-owner occupied CRE$2,608 $— $— $(366)$2,242 
Multifamily9,787 — — (92)9,695 
Construction/land development
Multifamily construction1,345 — — 221 1,566 
CRE construction204 — — (35)169 
Single family construction12,525 — — (1,458)11,067 
Single family construction to permanent1,211 — — 210 1,421 
Total27,680 — — (1,520)26,160 
Commercial and industrial loans
Owner occupied CRE910 — — 20 930 
Commercial business3,416 (166)24 563 3,837 
     Total 4,326 (166)24 583 4,767 
Consumer loans
Single family5,804 — 2 811 6,617 
Home equity and other3,690 (90)119 237 3,956 
Total9,494 (90)121 1,048 10,573 
Total ACL$41,500 $(256)$145 $111 $41,500 


Quarter Ended June 30, 2022
(in thousands)Beginning balanceCharge-offsRecoveriesProvision
Ending balance
CRE
Non-owner occupied CRE$2,294 $— $— $(114)$2,180 
Multifamily8,427 — — 1,647 10,074 
Construction/land development
Multifamily construction456 — — 110 566 
CRE construction184 — — 1 185 
Single family construction7,735 — — 2,952 10,687 
Single family construction to permanent990 — — 169 1,159 
Total20,086 — — 4,765 24,851 
Commercial and industrial loans
Owner occupied CRE3,536 — — (2,444)1,092 
Commercial business6,910 (649)45 (2,728)3,578 
     Total 10,446 (649)45 (5,172)4,670 
Consumer loans
Single family3,762 — 136 129 4,027 
Home equity and other3,650 (33)128 62 3,807 
Total7,412 (33)264 191 7,834 
Total ACL$37,944 $(682)$309 $(216)$37,355 
Six Months Ended June 30, 2023
(in thousands)Beginning balanceCharge-offsRecoveriesProvisionEnding
balance
CRE
Non-owner occupied CRE$2,102 $— $— $140 $2,242 
Multifamily10,974 — — (1,279)9,695 
Construction/land development
Multifamily construction998 — — 568 1,566 
CRE construction196 — — (27)169 
Single family construction12,418 — — (1,351)11,067 
Single family construction to permanent1,171 — — 250 1,421 
Total27,859 — — (1,699)26,160 
Commercial and industrial loans
Owner occupied CRE1,030 — — (100)930 
Commercial business3,247 (799)48 1,341 3,837 
Total4,277 (799)48 1,241 4,767 
Consumer loans
Single family5,610 — 17 990 6,617 
Home equity and other3,754 (140)174 168 3,956 
Total9,364 (140)191 1,158 10,573 
Total ACL$41,500 $(939)$239 $700 $41,500 


Six Months Ended June 30, 2022
(in thousands)Beginning balanceCharge-offsRecoveriesProvisionEnding
balance
CRE
Non-owner occupied CRE$7,509 $— $— $(5,329)$2,180 
Multifamily5,854 — — 4,220 10,074 
Construction/land development
Multifamily construction507 — — 59 566 
CRE construction150 — — 35 185 
Single family construction6,411 — — 4,276 10,687 
Single family construction to permanent1,055 — — 104 1,159 
Total21,486 — — 3,365 24,851 
Commercial and industrial loans
Owner occupied CRE5,006 — — (3,914)1,092 
Commercial business12,273 (660)69 (8,104)3,578 
Total17,279 (660)69 (12,018)4,670 
Consumer loans
Single family4,394 — 140 (507)4,027 
Home equity and other3,964 (66)188 (279)3,807 
Total8,358 (66)328 (786)7,834 
Total ACL$47,123 $(726)$397 $(9,439)$37,355 
The following table presents a vintage analysis of the commercial portfolio segment by loan sub-class and risk rating or delinquency status.
At June 30, 2023
(in thousands)202320222021202020192018 and priorRevolvingRevolving-termTotal
COMMERCIAL PORTFOLIO
Non-owner occupied CRE
Pass$1,528 $68,192 $68,206 $41,558 $120,283 $303,392 $1,174 $— $604,333 
Special Mention— — — — — 29,143 — — 29,143 
Substandard— — — — 17,234 — — — 17,234 
Total1,528 68,192 68,206 41,558 137,517 332,535 1,174 — 650,710 
Multifamily
Pass65,433 1,817,799 1,158,857 506,073 218,747 185,323 — — 3,952,232 
Special Mention— — — 4,878 2,369 7,415 — — 14,662 
Substandard— — — — — — — — — 
Total65,433 1,817,799 1,158,857 510,951 221,116 192,738 — — 3,966,894 
Multifamily construction
Pass(215)33,089 88,765 — — — — — 121,639 
Special Mention— — — — — — — — — 
Substandard— — — — — — — — — 
Total(215)33,089 88,765 — — — — — 121,639 
CRE construction
Pass— — 14,457 — — — — — 14,457 
Special Mention— 1,792 — — — — — — 1,792 
Substandard— — — 3,960 — — — — 3,960 
Total— 1,792 14,457 3,960 — — — — 20,209 
Single family construction
Pass40,862 92,812 20,620 3,881 — 73 114,387 — 272,635 
Special Mention— — — — — — — — — 
Substandard— — 2,673 — — — — — 2,673 
Total40,862 92,812 23,293 3,881 — 73 114,387 — 275,308 
Single family construction to permanent
Current
11,748 97,491 43,564 4,405 1,551 517 — — 159,276 
Past due:
30-59 days
— — — — — — — — — 
60-89 days
— — — — — — — — — 
90+ days
— — — — — — — — — 
Total11,748 97,491 43,564 4,405 1,551 517 — — 159,276 
Owner occupied CRE
Pass10,516 70,913 42,565 42,269 69,286 168,623 3 923 405,098 
Special Mention— 1,497 8,765 — — 12,572 — — 22,834 
Substandard— — — — — 6,468 — — 6,468 
Total10,516 72,410 51,330 42,269 69,286 187,663 3 923 434,400 
Commercial business
Pass16,492 50,456 34,782 39,632 16,065 27,333 140,606 1,399 326,765 
Special Mention— 11,460 3,949 — 3,668 2,169 4,414 176 25,836 
Substandard— — 2,960 7,132 3,824 5,018 161 83 19,178 
Total16,492 61,916 41,691 46,764 23,557 34,520 145,181 1,658 371,779 
Total commercial portfolio
$146,364 $2,245,501 $1,490,163 $653,788 $453,027 $748,046 $260,745 $2,581 $6,000,215 
The following table presents a vintage analysis of the consumer portfolio segment by loan sub-class and delinquency status:
At June 30, 2023
(in thousands)202320222021202020192018 and priorRevolvingRevolving-termTotal
CONSUMER PORTFOLIO
Single family
Current
$16,215 $295,209 $292,170 $151,153 $47,776 $261,108 $— $— $1,063,631 
Past due:
30-59 days
— — — — 542 1,374 — — 1,916 
60-89 days
— — — — — — — — — 
90+ days
— — — — — 2,682 — — 2,682 
Total16,215 295,209 292,170 151,153 48,318 265,164 — — 1,068,229 
Home equity and other
Current
958 3,297 486 158 80 1,710 353,521 6,629 366,839 
Past due:
30-59 days
— 3 — — — 4 695 26 728 
60-89 days
— — 7 — — — 6 — 13 
90+ days
— 9 — — — 25 586 7 627 
Total958 3,309 493 158 80 1,739 354,808 6,662 368,207 
Total consumer portfolio (1)
$17,173 $298,518 $292,663 $151,311 $48,398 $266,903 $354,808 $6,662 $1,436,436 
Total LHFI$163,537 $2,544,019 $1,782,826 $805,099 $501,425 $1,014,949 $615,553 $9,243 $7,436,651 

(1)    Includes $1.3 million of loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes in fair value recognized in the consolidated income statements.
The following table presents a vintage analysis of the commercial portfolio segment by loan sub-class and risk rating or delinquency status:
At December 31, 2022
(in thousands)202220212020201920182017 and priorRevolvingRevolving-termTotal
COMMERCIAL PORTFOLIO
Non-owner occupied CRE
Pass$68,301 $68,356 $42,181 $139,760 $87,197 $242,544 $2,016 $786 $651,141 
Special Mention— — — — 2,702 4,242 — — 6,944 
Substandard— — — — — — — — — 
Total68,301 68,356 42,181 139,760 89,899 246,786 2,016 786 658,085 
Multifamily
Pass1,828,568 1,165,434 528,077 221,974 59,340 140,126 — — 3,943,519 
Special Mention— — 4,893 19,834 — 7,508 — — 32,235 
Substandard— — — — — — — — — 
Total1,828,568 1,165,434 532,970 241,808 59,340 147,634 — — 3,975,754 
Multifamily construction
Pass18,110 63,394 13,613 — — — — — 95,117 
Special Mention— — — — — — — — — 
Substandard— — — — — — — — — 
Total18,110 63,394 13,613 — — — — — 95,117 
CRE construction
Pass341 14,348 3,960 — — 305 — — 18,954 
Special Mention— — — — — — — — — 
Substandard— — — — — — — — — 
Total341 14,348 3,960 — — 305 — — 18,954 
Single family construction
Pass149,133 50,936 24,807 519 — 74 123,303 — 348,772 
Special Mention— — — — — — — — — 
Substandard— 6,782 — — — — — — 6,782 
Total149,133 57,718 24,807 519 — 74 123,303 — 355,554 
Single family construction to permanent
Current66,034 76,814 11,128 3,268 794 — — — 158,038 
Past due:
30-59 days — — — — — — — — — 
60-89 days — — — — — — — — — 
90+ days — — — — — — — — — 
Total66,034 76,814 11,128 3,268 794 — — — 158,038 
Owner occupied CRE
Pass70,192 51,919 44,778 71,652 36,457 139,691 3 1,104 415,796 
Special Mention— 743 — — 6,179 13,485 — — 20,407 
Substandard— — — — 2,149 5,011 — — 7,160 
Total70,192 52,662 44,778 71,652 44,785 158,187 3 1,104 443,363 
Commercial business
Pass65,566 42,921 45,940 18,594 13,548 18,779 130,427 2,041 337,816 
Special Mention— 612 — 3,577 9 3,444 403 — 8,045 
Substandard— 338 2,638 4,449 2,591 2,206 1,563 101 13,886 
Total65,566 43,871 48,578 26,620 16,148 24,429 132,393 2,142 359,747 
Total commercial portfolio$2,266,245 $1,542,597 $722,015 $483,627 $210,966 $577,415 $257,715 $4,032 $6,064,612 
The following table presents a vintage analysis of the consumer portfolio segment by loan sub-class and delinquency status:
At December 31, 2022
(in thousands)202220212020201920182017 and priorRevolvingRevolving-termTotal
CONSUMER PORTFOLIO
Single family
Current
$273,786 $253,937 $152,773 $49,302 $43,511 $231,277 $— $— $1,004,586 
Past due:
30-59 days
— — — — 340 2,113 — — 2,453 
60-89 days
— — — — — 258 — — 258 
90+ days
— — — 290 273 1,141 — — 1,704 
Total 273,786 253,937 152,773 49,592 44,124 234,789 — — 1,009,001 
Home equity and other
Current
4,156 692 220 150 72 1,593 340,567 4,017 351,467 
Past due:
30-59 days
— 6 — — — 9 446 — 461 
60-89 days
6 24 — — — 48 517 — 595 
90+ days
— — — — — 151 33 — 184 
Total4,162 722 220 150 72 1,801 341,563 4,017 352,707 
Total consumer portfolio (1)
$277,948 $254,659 $152,993 $49,742 $44,196 $236,590 $341,563 $4,017 $1,361,708 
Total LHFI$2,544,193 $1,797,256 $875,008 $533,369 $255,162 $814,005 $599,278 $8,049 $7,426,320 
(1)    Includes $5.9 million of loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes in fair value recognized in the consolidated income statements.

The following table presents a vintage analysis of the commercial and consumer portfolio segment by loan sub-class and gross charge-offs:
For the Six Months Ended June 30, 2023
(in thousands)202320222021202020192018 and priorRevolvingRevolving-termTotal
COMMERCIAL PORTFOLIO
Commercial business
Gross charge-offs$— $— $(185)$— $(564)$— $— $(50)$(799)
CONSUMER PORTFOLIO
Home equity and other
Gross charge-offs— (61)(13)— — — (66)— (140)
Total LHFI$— $(61)$(198)$— $(564)$— $(66)$(50)$(939)
Collateral Dependent Loans
The following table presents the amortized cost basis of collateral-dependent loans by loan sub-class and collateral type:
At June 30, 2023
(in thousands)Land1-4 FamilyNon-residential real estateOther non-real estateTotal
Commercial real estate loans
Non-owner occupied commercial real estate
$— $— $16,800 $— $16,800 
Construction/land development
Commercial real estate construction
3,960 — — — 3,960 
Total3,960 — 16,800 — 20,760 
Commercial and industrial loans
Owner occupied CRE— — 2,157 — 2,157 
Commercial business
6,155 3,073 562 2,211 12,001 
   Total
6,155 3,073 2,719 2,211 14,158 
Consumer loans
Single family
— 842 — — 842 
   Total
— 842 — — 842 
  Total collateral-dependent loans$10,115 $3,915 $19,519 $2,211 $35,760 
At December 31, 2022
(in thousands)Land1-4 FamilyNon-residential real estateOther non-real estateTotal
Commercial and industrial loans
Owner occupied CRE$1,111 $— $1,410 $— $2,521 
Commercial business
62 3,186 562 — 3,810 
Total collateral-dependent loans1,173 3,186 1,972 — 6,331 

Nonaccrual and Past Due Loans
The following table presents nonaccrual status for loans:
At June 30, 2023At December 31, 2022
(in thousands)Nonaccrual with no related ACLTotal NonaccrualNonaccrual with no related ACLTotal Nonaccrual
Commercial real estate loans
Non-owner occupied commercial real estate
$16,800 $16,800 $— $— 
Construction/land development
Commercial real estate construction
3,960 3,960 — — 
Total20,760 20,760 — — 
Commercial and industrial loans
Owner occupied CRE2,157 2,157 2,521 2,521 
        Commercial business11,305 12,001 785 4,269 
Total
13,462 14,158 3,306 6,790 
Consumer loans
Single family
1,054 3,688 332 2,584 
Home equity and other— 1,166 3 681 
Total1,054 4,854 335 3,265 
Total nonaccrual loans$35,276 $39,772 $3,641 $10,055 
The following tables present an aging analysis of past due loans by loan portfolio segment and loan sub-class:
At June 30, 2023
Past Due and Still Accruing
(in thousands)30-59 days60-89 days90 days or
more		Nonaccrual
Total past
due and nonaccrual (1)
CurrentTotal
loans
CRE
Non-owner occupied CRE$— $— $— $16,800 $16,800 $633,910 $650,710 
Multifamily— — — — — 3,966,894 3,966,894 
Construction/land development
Multifamily construction— — — — — 121,639 121,639 
CRE construction— — — 3,960 3,960 16,249 20,209 
Single family construction— — — — — 275,308 275,308 
Single family construction to permanent— — — — — 159,276 159,276 
Total
— — — 20,760 20,760 5,173,276 5,194,036 
Commercial and industrial loans
Owner occupied CRE— — — 2,157 2,157 432,243 434,400 
Commercial business— — — 12,001 12,001 359,778 371,779 
Total
— — — 14,158 14,158 792,021 806,179 
Consumer loans
Single family
3,442 1,243 4,715 (2)3,688 13,088 1,055,141 1,068,229 
Home equity and other466 14 — 1,166 1,646 366,561 368,207 
Total
3,908 1,257 4,715 4,854 14,734 1,421,702 1,436,436 (3)
Total loans$3,908 $1,257 $4,715 $39,772 $49,652 $7,386,999 $7,436,651 
%0.05 %0.02 %0.06 %0.54 %0.67 %99.33 %100.00 %
At December 31, 2022
Past Due and Still Accruing
(in thousands)30-59 days60-89 days90 days or
more		Nonaccrual
Total past
due and nonaccrual (1)
CurrentTotal
loans
CRE
Non-owner occupied CRE$— $— $— $— $— $658,085 $658,085 
Multifamily— — — — — 3,975,754 3,975,754 
Construction/land development
Multifamily construction— — — — — 95,117 95,117 
CRE construction— — — — — 18,954 18,954 
Single family construction— — — — — 355,554 355,554 
Single family construction to permanent— — — — — 158,038 158,038 
Total
— — — — — 5,261,502 5,261,502 
Commercial and industrial loans
Owner occupied CRE— — — 2,521 2,521 440,842 443,363 
Commercial business— — — 4,269 4,269 355,478 359,747 
Total
— — — 6,790 6,790 796,320 803,110 
Consumer loans
Single family
4,556 1,724 4,372 (2)2,584 13,236 995,765 1,009,001 
Home equity and other267 296 — 681 1,244 351,463 352,707 
Total
4,823 2,020 4,372 3,265 14,480 1,347,228 1,361,708 (3)
Total loans$4,823 $2,020 $4,372 $10,055 $21,270 $7,405,050 $7,426,320 
%0.06 %0.03 %0.06 %0.14 %0.29 %99.71 %100.00 %
(1)     Includes loans whose repayments are insured by the FHA or guaranteed by the VA or Small Business Administration ("SBA") of $11.3 million and $10.6 million at June 30, 2023 and December 31, 2022, respectively.
(2)    FHA-insured and VA-guaranteed single family loans that are 90 days or more past due are maintained on accrual status if they are determined to have little to no risk of loss.
(3)     Includes $1.3 million and $5.9 million of loans at June 30, 2023 and December 31, 2022, respectively, where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes in fair value recognized in our consolidated income statements.
Loan Modifications

The Company provides modifications to borrowers experiencing financial difficulty ("MBFD"), which may include delays in payment of amounts due, extension of the terms of the notes or reduction in the interest rates on the notes. In certain instances, the Company may grant more than one type of modification. The granting of modifications in the quarters and six months ended June 30, 2023 and 2022 did not have a material impact on the ACL. The following tables provide information related to loans modified during the quarters and six months ended June 30, 2023 and 2022 to borrowers experiencing financial difficulty, disaggregated by class of financing receivable and type of concession granted:
Significant Payment Delay
Quarter Ended June 30,Six Months Ended June 30,
2023202220232022
(in thousands, except percentage)Amortized Cost Basis at Period End% of Total Class of Financing ReceivableAmortized Cost Basis at Period End% of Total Class of Financing ReceivableAmortized Cost Basis at Period End% of Total Class of Financing ReceivableAmortized Cost Basis at Period End% of Total Class of Financing Receivable
Single family$— — %$340 0.04 %$— — %$340 0.04 %
Home equity and other— — %— — %— — %70 0.02 %
Term Extension
Quarter Ended June 30,Six Months Ended June 30,
2023202220232022
(in thousands, except percentage)Amortized Cost Basis at Period End% of Total Class of Financing ReceivableAmortized Cost Basis at Period End% of Total Class of Financing ReceivableAmortized Cost Basis at Period End% of Total Class of Financing ReceivableAmortized Cost Basis at Period End% of Total Class of Financing Receivable
Commercial business$4,734 1.27 %$1,578 0.40 %$4,734 1.27 %$1,578 0.40 %
Single family— — %236 0.03 %— — %272 0.03 %
Interest Rate Reduction and Term Extension
Quarter Ended June 30,Six Months Ended June 30,
2023202220232022
(in thousands, except percentage)Amortized Cost Basis at Period End% of Total Class of Financing ReceivableAmortized Cost Basis at Period End% of Total Class of Financing ReceivableAmortized Cost Basis at Period End% of Total Class of Financing ReceivableAmortized Cost Basis at Period End% of Total Class of Financing Receivable
Single family$— — %$— — %$— — %$823 0.10 %

Significant Payment Delay and Term Extension
Quarter Ended June 30,Six Months Ended June 30,
2023202220232022
(in thousands, except percentage)Amortized Cost Basis at Period End% of Total Class of Financing ReceivableAmortized Cost Basis at Period End% of Total Class of Financing ReceivableAmortized Cost Basis at Period End% of Total Class of Financing ReceivableAmortized Cost Basis at Period End% of Total Class of Financing Receivable
Single family$942 0.09 %$4,048 0.49 %$1,120 0.10 %$10,084 1.23 %
Home equity and other— — %— — %— — %52 0.02 %
Interest Rate Reduction, Significant Payment Delay and Term Extension
Quarter Ended June 30,Six Months Ended June 30,
2023202220232022
(in thousands, except percentage)Amortized Cost Basis at Period End% of Total Class of Financing ReceivableAmortized Cost Basis at Period End% of Total Class of Financing ReceivableAmortized Cost Basis at Period End% of Total Class of Financing ReceivableAmortized Cost Basis at Period End% of Total Class of Financing Receivable
Single family$192 0.02 %$2,775 0.34 %$192 0.02 %$6,898 0.84 %


The following table describes the financial effect of the modifications made to borrowers experiencing financial difficulty:

Interest Rate Reduction
Quarter Ended June 30,Six Months Ended June 30,
2023202220232022
Single family
Reduced weighted-average contractual interest rate from 5.25% to 5.00%.
Reduced weighted-average contractual interest rate from 4.79% to 3.56%.
Reduced weighted-average contractual interest rate from 5.25% to 5.00%.
Reduced weighted-average contractual interest rate from 4.35% to 3.36%.
Significant Payment Delay
Quarter Ended June 30,Six Months Ended June 30,
2023202220232022
Single Family
Provided payment deferrals to borrowers. A weighted average 0.55% of loan balances were capitalized and added to the remaining term of the loan.
Provided payment deferrals to borrowers. A weighted average 0.51% of loan balances were capitalized and added to the remaining term of the loan.
Provided payment deferrals to borrowers. A weighted average 0.52% of loan balances were capitalized and added to the remaining term of the loan.
Provided payment deferrals to borrowers. A weighted average 0.20% of loan balances were capitalized and added to the remaining term of the loan.
Home equity and other———
Provided payment deferrals to borrowers. A weighted average 3.41% of loan balances were capitalized and added to the remaining term of the loan.
Term Extension
Quarter Ended June 30,Six Months Ended June 30,
2023202220232022
Commercial business
Added a weighted average 0.3 years to the life of loans, which reduced the monthly payment amounts to the borrowers.
Added a weighted average 0.8 years to the life of loans, which reduced the monthly payment amounts to the borrowers.
Added a weighted average 0.3 years to the life of loans, which reduced the monthly payment amounts to the borrowers.
Added a weighted average 0.8 years to the life of loans, which reduced the monthly payment amounts to the borrowers.
Single family
Added a weighted average 2.9 years to the life of loans, which reduced the monthly payment amounts to the borrowers.
Added a weighted average 6.4 years to the life of loans, which reduced the monthly payment amounts to the borrowers.
Added a weighted average 5.9 years to the life of loans, which reduced the monthly payment amounts to the borrowers.
Added a weighted average 4.5 years to the life of loans, which reduced the monthly payment amounts to the borrowers.
Home equity and other———
Added a weighted average 16.1 years to the life of loans, which reduced the monthly payment amounts to the borrowers.

Upon determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount.
The following table depicts the payment status of loans that were classified as MBFDs on or after April 1, 2022 through March 31, 2023:

Payment Status (Amortized Cost Basis) at June 30, 2023
(in thousands)Current30-89 Days Past Due90+ Days Past Due
Commercial business$4,734 $— $— 
Single family9,930 920 608 
Total$14,664 $920 $608 
The following tables provide the amortized cost basis as of June 30, 2023 of MBFDs on or after April 1, 2022 through March 31, 2023 and subsequently had a payment default:

Amortized Cost Basis of Modified Loans That Subsequently Defaulted
Quarter Ended June 30, 2023
(in thousands)Significant Payment DelayTerm ExtensionInterest Rate Reduction and Term ExtensionSignificant Payment Delay and Term ExtensionInterest Rate Reduction, Significant Payment Delay and Term Extension
Single family$— $— $— $215 $469 

Amortized Cost Basis of Modified Loans That Subsequently Defaulted
Six Months Ended June 30, 2023
(in thousands)Significant Payment DelayTerm ExtensionInterest Rate Reduction and Term ExtensionSignificant Payment Delay and Term ExtensionInterest Rate Reduction, Significant Payment Delay and Term Extension
Single family$— $— $— $2,245 $1,092