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LOANS AND CREDIT QUALITY
 9 Months Ended
Sep. 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 September 30, 2023At December 31, 2022
CRE
Non-owner occupied CRE$633,083 $658,085 
Multifamily3,957,209 3,975,754 
Construction/land development566,289 627,663 
Total5,156,581 5,261,502 
Commercial and industrial loans
Owner occupied CRE428,253 443,363 
Commercial business385,148 359,747 
Total
813,401 803,110 
Consumer loans
Single family1,099,644 1,009,001 
Home equity and other370,875 352,707 
Total (1)
1,470,519 1,361,708 
Total LHFI 7,440,501 7,426,320 
Allowance for credit losses ("ACL")(40,000)(41,500)
Total LHFI less ACL
$7,400,501 $7,384,820 
(1)    Includes $1.2 million and $5.9 million at September 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 $5.7 billion and $5.2 billion at September 30, 2023 and December 31, 2022, respectively, were pledged to secure borrowings from the Federal Home Loan Bank ("FHLB") and loans totaling $528 million and $497 million at September 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 September 30, 2023, single family and multifamily loans in the state of Washington and California represented 11% 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 September 30, 2023, the historical expected loss rates decreased when compared to December 31, 2022 due to product mix risk composition changes. During the third quarter of 2023, expected loss rates decreased due to product mix risk composition changes, and the qualitative factors decreased due to economic conditions performing better than expected and improved single-family collateral forecasts offset slightly by deteriorated commercial collateral conditions. As of September 30, 2023, the Bank expects improvement in commercial collateral values and deterioration in single family 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 $1.6 million and $2.2 million at September 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 $27.7 million and $26.9 million at September 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 September 30,Nine Months Ended September 30,
(in thousands)2023202220232022
Beginning balance
$41,500 $37,355 $41,500 $47,123 
Provision for credit losses(990)249(290)(9,190)
Net (charge-offs) recoveries(510)2(1,210)(327)
Ending balance$40,000 $37,606 $40,000 $37,606 
Allowance for unfunded commitments:
Beginning balance$1,721 $2,843 $2,197 $2,404 
Provision for credit losses(120)(249)(596)190 
Ending balance$1,601 $2,594 $1,601 $2,594 
Provision for credit losses:
Allowance for credit losses - loans$(990)$249 $(290)$(9,190)
Allowance for unfunded commitments(120)(249)(596)190 
Total$(1,110)$— $(886)$(9,000)
Activity in the ACL for LHFI by loan portfolio and loan sub-class was as follows:

Quarter Ended September 30, 2023
(in thousands)Beginning balanceCharge-offsRecoveriesProvision Ending balance
CRE
Non-owner occupied CRE$2,242 $— $— $123 $2,365 
Multifamily9,695 — — 1,011 10,706 
Construction/land development
Multifamily construction1,566 — — 26 1,592 
CRE construction169 — — (16)153 
Single family construction11,067 — — (1,322)9,745 
Single family construction to permanent1,421 — — (430)991 
Total26,160 — — (608)25,552 
Commercial and industrial loans
Owner occupied CRE930 — — 172 1,102 
Commercial business3,837 (543)25 282 3,601 
     Total 4,767 (543)25 454 4,703 
Consumer loans
Single family6,617 — 4 (838)5,783 
Home equity and other3,956 (92)96 2 3,962 
Total10,573 (92)100 (836)9,745 
Total ACL$41,500 $(635)$125 $(990)$40,000 


Quarter Ended September 30, 2022
(in thousands)Beginning balanceCharge-offsRecoveriesProvision
Ending balance
CRE
Non-owner occupied CRE$2,180 $— $— $(74)$2,106 
Multifamily10,074 — — 1,109 11,183 
Construction/land development
Multifamily construction566 — — 99 665 
CRE construction185 — — (25)160 
Single family construction10,687 — — (1,123)9,564 
Single family construction to permanent1,159 — — (19)1,140 
Total24,851 — — (33)24,818 
Commercial and industrial loans
Owner occupied CRE1,092 — — (123)969 
Commercial business3,578 (81)25 197 3,719 
     Total 4,670 (81)25 74 4,688 
Consumer loans
Single family4,027 — 1 436 4,464 
Home equity and other3,807 (43)100 (228)3,636 
Total7,834 (43)101 208 8,100 
Total ACL$37,355 $(124)$126 $249 $37,606 
Nine Months Ended September 30, 2023
(in thousands)Beginning balanceCharge-offsRecoveriesProvisionEnding
balance
CRE
Non-owner occupied CRE$2,102 $— $— $263 $2,365 
Multifamily10,974 — — (268)10,706 
Construction/land development
Multifamily construction998 — — 594 1,592 
CRE construction196 — — (43)153 
Single family construction12,418 — — (2,673)9,745 
Single family construction to permanent1,171 — — (180)991 
Total27,859 — — (2,307)25,552 
Commercial and industrial loans
Owner occupied CRE1,030 — — 72 1,102 
Commercial business3,247 (1,342)73 1,623 3,601 
Total4,277 (1,342)73 1,695 4,703 
Consumer loans
Single family5,610 — 21 152 5,783 
Home equity and other3,754 (232)270 170 3,962 
Total9,364 (232)291 322 9,745 
Total ACL$41,500 $(1,574)$364 $(290)$40,000 


Nine Months Ended September 30, 2022
(in thousands)Beginning balanceCharge-offsRecoveriesProvisionEnding
balance
CRE
Non-owner occupied CRE$7,509 $— $— $(5,403)$2,106 
Multifamily5,854 — — 5,329 11,183 
Construction/land development
Multifamily construction507 — — 158 665 
CRE construction150 — — 10 160 
Single family construction6,411 — — 3,153 9,564 
Single family construction to permanent1,055 — — 85 1,140 
Total21,486 — — 3,332 24,818 
Commercial and industrial loans
Owner occupied CRE5,006 — — (4,037)969 
Commercial business12,273 (741)94 (7,907)3,719 
Total17,279 (741)94 (11,944)4,688 
Consumer loans
Single family4,394 — 141 (71)4,464 
Home equity and other3,964 (109)288 (507)3,636 
Total8,358 (109)429 (578)8,100 
Total ACL$47,123 $(850)$523 $(9,190)$37,606 
The following table presents a vintage analysis of the commercial portfolio segment by loan sub-class and risk rating or delinquency status.
At September 30, 2023
(in thousands)202320222021202020192018 and priorRevolvingRevolving-termTotal
COMMERCIAL PORTFOLIO
Non-owner occupied CRE
Pass$1,514 $70,440 $68,131 $41,245 $119,562 $280,125 $599 $— $581,616 
Special Mention— — — — — 34,435 — — 34,435 
Substandard— — — — 16,871 — 161 — 17,032 
Total1,514 70,440 68,131 41,245 136,433 314,560 760 — 633,083 
Multifamily
Pass108,330 1,815,620 1,153,149 483,726 190,380 179,339 — — 3,930,544 
Special Mention— — 3,942 12,981 2,369 4,290 — — 23,582 
Substandard— — — — — 3,083 — — 3,083 
Total108,330 1,815,620 1,157,091 496,707 192,749 186,712 — — 3,957,209 
Multifamily construction
Pass(206)41,430 100,778 — — — — — 142,002 
Special Mention— — — — — — — — — 
Substandard— — — — — — — — — 
Total(206)41,430 100,778 — — — — — 142,002 
CRE construction
Pass7 — 14,459 — — — — — 14,466 
Special Mention— — — — — — — — — 
Substandard— — — 3,871 — — — — 3,871 
Total7 — 14,459 3,871 — — — — 18,337 
Single family construction
Pass62,297 56,402 17,502 — — 72 126,829 — 263,102 
Special Mention— 4,207 — — — — — — 4,207 
Substandard— — 1,050 — — — — — 1,050 
Total62,297 60,609 18,552 — — 72 126,829 — 268,359 
Single family construction to permanent
Current
23,201 82,282 30,299 1,809 — — — — 137,591 
Past due:
30-59 days
— — — — — — — — — 
60-89 days
— — — — — — — — — 
90+ days
— — — — — — — — — 
Total23,201 82,282 30,299 1,809 — — — — 137,591 
Owner occupied CRE
Pass10,747 69,650 40,278 41,918 66,055 143,484 1 905 373,038 
Special Mention1,891 1,487 7,963 — 2,689 34,784 — — 48,814 
Substandard— — — — — 6,401 — — 6,401 
Total12,638 71,137 48,241 41,918 68,744 184,669 1 905 428,253 
Commercial business
Pass29,506 47,718 33,317 38,177 18,217 27,702 152,176 1,354 348,167 
Special Mention— 11,307 3,270 — 953 164 4,091 — 19,785 
Substandard— — 2,324 6,996 3,475 4,067 260 74 17,196 
Total29,506 59,025 38,911 45,173 22,645 31,933 156,527 1,428 385,148 
Total commercial portfolio
$237,287 $2,200,543 $1,476,462 $630,723 $420,571 $717,946 $284,117 $2,333 $5,969,982 
The following table presents a vintage analysis of the consumer portfolio segment by loan sub-class and delinquency status:
At September 30, 2023
(in thousands)202320222021202020192018 and priorRevolvingRevolving-termTotal
CONSUMER PORTFOLIO
Single family
Current
$16,110 $322,349 $304,831 $148,640 $49,434 $254,394 $— $— $1,095,758 
Past due:
30-59 days
— — — — — 525 — — 525 
60-89 days
— — — — — 461 — — 461 
90+ days
— — — — — 2,900 — — 2,900 
Total16,110 322,349 304,831 148,640 49,434 258,280 — — 1,099,644 
Home equity and other
Current
1,542 2,839 393 142 65 1,670 356,808 6,223 369,682 
Past due:
30-59 days
3 4 4 — — — 557 26 594 
60-89 days
— 1 — — — — 68 73 142 
90+ days
— 30 — — — 25 402 — 457 
Total1,545 2,874 397 142 65 1,695 357,835 6,322 370,875 
Total consumer portfolio (1)
$17,655 $325,223 $305,228 $148,782 $49,499 $259,975 $357,835 $6,322 $1,470,519 
Total LHFI$254,942 $2,525,766 $1,781,690 $779,505 $470,070 $977,921 $641,952 $8,655 $7,440,501 

(1)    Includes $1.2 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:
Nine Months Ended September 30, 2023
(in thousands)202320222021202020192018 and priorRevolvingRevolving-termTotal
COMMERCIAL PORTFOLIO
Commercial business
Gross charge-offs$— $— $(185)$— $(564)$(543)$— $(50)$(1,342)
CONSUMER PORTFOLIO
Home equity and other
Gross charge-offs— (71)(22)— — (4)(135)— (232)
Total LHFI$— $(71)$(207)$— $(564)$(547)$(135)$(50)$(1,574)
Collateral Dependent Loans
The following table presents the amortized cost basis of collateral-dependent loans by loan sub-class and collateral type:
At September 30, 2023
(in thousands)Land1-4 FamilyNon-residential real estateOther non-real estateTotal
Commercial real estate loans
Non-owner occupied commercial real estate
$— $161 $16,440 $— $16,601 
Construction/land development
Commercial real estate construction
— — 3,871 — 3,871 
Total— 161 20,311 — 20,472 
Commercial and industrial loans
Owner occupied CRE— — 2,136 — 2,136 
Commercial business
— 2,848 6,285 2,040 11,173 
   Total
— 2,848 8,421 2,040 13,309 
Consumer loans
Single family
— 783 — — 783 
   Total
— 783 — — 783 
  Total collateral-dependent loans$— $3,792 $28,732 $2,040 $34,564 
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 loans$1,173 $3,186 $1,972 $— $6,331 

Nonaccrual and Past Due Loans
The following table presents nonaccrual status for loans:
At September 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
$16,601 $16,601 $— $— 
Construction/land development
Commercial real estate construction
3,871 3,871 — — 
Total20,472 20,472 — — 
Commercial and industrial loans
Owner occupied CRE2,136 2,136 2,521 2,521 
        Commercial business10,595 11,758 785 4,269 
Total
12,731 13,894 3,306 6,790 
Consumer loans
Single family
783 3,437 332 2,584 
Home equity and other— 962 3 681 
Total783 4,399 335 3,265 
Total nonaccrual loans$33,986 $38,765 $3,641 $10,055 
The following tables present an aging analysis of past due loans by loan portfolio segment and loan sub-class:
At September 30, 2023
Past Due and Still Accruing
(in thousands)30-59 days60-89 days90 days or
more		Nonaccrual
Total past
due and nonaccrual (1)
CurrentTotal
loans
CRE
Non-owner occupied CRE$— $— $— $16,601 $16,601 $616,482 $633,083 
Multifamily— — — — — 3,957,209 3,957,209 
Construction/land development
Multifamily construction— — — — — 142,002 142,002 
CRE construction— — — 3,871 3,871 14,466 18,337 
Single family construction— — — — — 268,359 268,359 
Single family construction to permanent— — — — — 137,591 137,591 
Total
— — — 20,472 20,472 5,136,109 5,156,581 
Commercial and industrial loans
Owner occupied CRE— — — 2,136 2,136 426,117 428,253 
Commercial business— — — 11,758 11,758 373,390 385,148 
Total
— — — 13,894 13,894 799,507 813,401 
Consumer loans
Single family
3,562 1,476 3,337 (2)3,437 11,812 1,087,832 1,099,644 
Home equity and other519 137 — 962 1,618 369,257 370,875 
Total
4,081 1,613 3,337 4,399 13,430 1,457,089 1,470,519 (3)
Total loans$4,081 $1,613 $3,337 $38,765 $47,796 $7,392,705 $7,440,501 
%0.06 %0.02 %0.04 %0.52 %0.64 %99.36 %100.00 %
At December 31, 2022
Past Due and Still Accruing
(in thousands)30-59 days60-89 days90 days or
more		Nonaccrual
Total past
due and nonaccrual (1)
CurrentTotal
loans
CRE
Non-owner occupied CRE$— $— $— $— $— $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 $10.2 million and $10.6 million at September 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 $1.2 million and $5.9 million of loans at September 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 nine months ended September 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 nine months ended September 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 September 30,Nine Months Ended September 30,
2023202220232022
(in thousands, except percentages)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$847 0.08 %$682 0.08 %$847 0.08 %$1,209 0.13 %
Home equity and other— — %— — %— — %70 0.02 %
Term Extension
Quarter Ended September 30,Nine Months Ended September 30,
2023202220232022
(in thousands, except percentages)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$9,663 2.51 %— — %$10,396 2.70 %$1,570 0.43 %
Single family273 0.02 %— — %273 0.02 %270 0.03 %

Interest Rate Reduction and Significant Payment Delay
Quarter Ended September 30,Nine Months Ended September 30,
2023202220232022
(in thousands, except percentages)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$— — %$477 0.13 %$— — %$477 0.13 %
Interest Rate Reduction and Term Extension
Quarter Ended September 30,Nine Months Ended September 30,
2023202220232022
(in thousands, except percentages)Amortized Cost Basis at Period End% of Total Class of Financing ReceivableAmortized Cost Basis at Period End% of Total Class of Financing ReceivableAmortized Cost Basis at Period End% of Total Class of Financing ReceivableAmortized Cost Basis at Period End% of Total Class of Financing Receivable
Single family$— — %$— — %$— — %$819 0.09 %
Significant Payment Delay and Term Extension
Quarter Ended September 30,Nine Months Ended September 30,
2023202220232022
(in thousands, except percentages)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
Non-owner occupied CRE$16,440 2.60 %$— — %$16,440 2.60 %$— — %
Construction/land development3,871 0.68 %— — %3,871 0.68 %— — %
Single family1,167 0.11 %4,033 0.44 %2,284 0.21 %13,325 1.47 %
Home equity and other— — %— — %— — %51 0.01 %

Interest Rate Reduction, Significant Payment Delay and Term Extension
Quarter Ended September 30,Nine Months Ended September 30,
2023202220232022
(in thousands, except percentages)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$— — %$294 0.03 %$192 0.02 %$7,185 0.79 %
The following table describes the financial effect of the modifications made to borrowers experiencing financial difficulty:
Interest Rate Reduction
Quarter Ended September 30,Nine Months Ended September 30,
2023202220232022
Commercial business—
Reduced weighted-average contractual interest rate from 5.72% to 4.00%.
—
Reduced weighted-average contractual interest rate from 5.72% to 4.00%.
Single family—
Reduced weighted-average contractual interest rate from 4.38% to 4.13%.
Reduced weighted-average contractual interest rate from 5.25% to 5.00%.
Reduced weighted-average contractual interest rate from 4.35% to 3.39%.
Significant Payment Delay
Quarter Ended September 30,Nine Months Ended September 30,
2023202220232022
Non-owner occupied CRE
The weighted average duration of loan payments deferred is 1.6 years.
—
The weighted average duration of loan payments deferred is 1.6 years.
—
Construction/land development
The weighted average duration of loan payments deferred is 2.1 years.
—
The weighted average duration of loan payments deferred is 2.1 years.
—
Single Family
Provided payment deferrals to borrowers. A weighted average 1.08% of loan balances were capitalized and added to the remaining term of the loan.
Provided payment deferrals to borrowers. A weighted average 1.83% of loan balances were capitalized and added to the remaining term of the loan.
Provided payment deferrals to borrowers. A weighted average 0.48% of loan balances were capitalized and added to the remaining term of the loan.
Provided payment deferrals to borrowers. A weighted average 0.22% 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 3.44% of loan balances were capitalized and added to the remaining term of the loan.
Term Extension
Quarter Ended September 30,Nine Months Ended September 30,
2023202220232022
Non-owner occupied CRE
Added a weighted average 1.6 years to the life of loans, which reduced the monthly payment amounts to the borrowers.
—
Added a weighted average 1.6 years to the life of loans, which reduced the monthly payment amounts to the borrowers.
—
Construction/land development
Added a weighted average 2.1 years to the life of loans, which reduced the monthly payment amounts to the borrowers.
—
Added a weighted average 2.1 years to the life of loans, which reduced the monthly payment amounts to the borrowers.
—
Commercial business
Added a weighted average 1.1 years to the life of loans, which reduced the monthly payment amounts to the borrowers.
—
Added a weighted average 1.2 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 3.4 years to the life of loans, which reduced the monthly payment amounts to the borrowers.
Added a weighted average 3.6 years to the life of loans, which reduced the monthly payment amounts to the borrowers.
Added a weighted average 4.6 years to the life of loans, which reduced the monthly payment amounts to the borrowers.
Added a weighted average 4.4 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 July 1, 2022 through June 30, 2023:

Payment Status (Amortized Cost Basis) at September 30, 2023
(in thousands)Current30-89 Days Past Due90+ Days Past Due
Non-owner occupied CRE$16,440 $— $— 
Construction/land development3,871 — — 
Commercial business14,335 — — 
Single family8,090 700 518 
Total$42,736 $700 $518 
The following tables provide the amortized cost basis as of September 30, 2023 of MBFDs on or after July 1, 2022 through June 30, 2023 and subsequently had a payment default:

Amortized Cost Basis of Modified Loans That Subsequently Defaulted
Quarter Ended September 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
Commercial business$— $2,990 $— $— $— 
Single family235 — — 634 70 

Amortized Cost Basis of Modified Loans That Subsequently Defaulted
Nine Months Ended September 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
Commercial business$— $2,990 $— $— $— 
Single family235 — — 2,879 1,162 

The following tables presents loans that were modified from January 1, 2022 through June 30, 2022 and subsequently had a payment default.

Amortized Cost Basis of Modified Loans That Subsequently Defaulted
Quarter Ended September 30, 2022
(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$— $— $— $— $553 
Amortized Cost Basis of Modified Loans That Subsequently Defaulted
Nine Months Ended September 30, 2022
(in thousands)Significant Payment DelayTerm ExtensionInterest Rate Reduction and Term ExtensionSignificant Payment Delay and Term ExtensionInterest Rate Reduction, Significant Payment Delay and Term Extension
Single family$— $— $— $172 $1,555