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ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY | 12 Months Ended
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Dec. 31, 2024
ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY |
ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY | ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY The following table presents the activity in the allowance for credit losses by portfolio segment for the year ended December 31, 2024, 2023 and 2022:
(dollars in thousands) | Commercial and Industrial |  | Commercial Real Estate and Multi-family Residential |  | Agri-business and Agricultural |  | Other Commercial |  | Consumer 1-4 Family Mortgage |  | Other Consumer |  | Unallocated |  | Total
2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance | $ | 30,338 |  |  | $ | 31,335 |  |  | $ | 4,150 |  |  | $ | 1,129 |  |  | $ | 3,474 |  |  | $ | 1,174 |  |  | $ | 372 |  |  | $ | 71,972 |
Provision for credit losses | 16,639 |  |  | 264 |  |  | (609) |  |  | (386) |  |  | (75) |  |  | 906 |  |  | 11 |  |  | 16,750 |
Loans charged-off | (1,615) |  |  | (840) |  |  | 0 |  |  | 0 |  |  | (94) |  |  | (919) |  |  | 0 |  |  | (3,468) |
Recoveries | 177 |  |  | 106 |  |  | 0 |  |  | 0 |  |  | 53 |  |  | 370 |  |  | 0 |  |  | 706 |
Net loans (charged-off) recovered | (1,438) |  |  | (734) |  |  | 0 |  |  | 0 |  |  | (41) |  |  | (549) |  |  | 0 |  |  | (2,762) |
Ending balance | $ | 45,539 |  |  | $ | 30,865 |  |  | $ | 3,541 |  |  | $ | 743 |  |  | $ | 3,358 |  |  | $ | 1,531 |  |  | $ | 383 |  |  | $ | 85,960 |
(dollars in thousands) | Commercial and Industrial |  | Commercial Real Estate and Multi-family Residential |  | Agri-business and Agricultural |  | Other Commercial |  | Consumer 1-4 Family Mortgage |  | Other Consumer |  | Unallocated |  | Total
2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance | $ | 35,290 |  |  | $ | 27,394 |  |  | $ | 4,429 |  |  | $ | 917 |  |  | $ | 3,001 |  |  | $ | 1,021 |  |  | $ | 554 |  |  | $ | 72,606 |
Provision for credit losses | 1,209 |  |  | 3,619 |  |  | (279) |  |  | 212 |  |  | 598 |  |  | 673 |  |  | (182) |  |  | 5,850 |
Loans charged-off | (6,341) |  |  | 0 |  |  | 0 |  |  | 0 |  |  | (163) |  |  | (828) |  |  | 0 |  |  | (7,332) |
Recoveries | 180 |  |  | 322 |  |  | 0 |  |  | 0 |  |  | 38 |  |  | 308 |  |  | 0 |  |  | 848 |
Net loans (charged-off) recovered | (6,161) |  |  | 322 |  |  | 0 |  |  | 0 |  |  | (125) |  |  | (520) |  |  | 0 |  |  | (6,484) |
Ending balance | $ | 30,338 |  |  | $ | 31,335 |  |  | $ | 4,150 |  |  | $ | 1,129 |  |  | $ | 3,474 |  |  | $ | 1,174 |  |  | $ | 372 |  |  | $ | 71,972 |
(dollars in thousands) | Commercial and Industrial |  | Commercial Real Estate and Multi-family Residential |  | Agri-business and Agricultural |  | Other Commercial |  | Consumer 1-4 Family Mortgage |  | Other Consumer |  | Unallocated |  | Total
2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance | $ | 30,595 |  |  | $ | 26,535 |  |  | $ | 5,034 |  |  | $ | 1,146 |  |  | $ | 2,866 |  |  | $ | 1,147 |  |  | $ | 450 |  |  | $ | 67,773 |
Provision for credit losses | 8,646 |  |  | 1,179 |  |  | (605) |  |  | (229) |  |  | 125 |  |  | 155 |  |  | 104 |  |  | 9,375 |
Loans charged-off | (4,022) |  |  | (597) |  |  | 0 |  |  | 0 |  |  | (42) |  |  | (473) |  |  | 0 |  |  | (5,134) |
Recoveries | 71 |  |  | 277 |  |  | 0 |  |  | 0 |  |  | 52 |  |  | 192 |  |  | 0 |  |  | 592 |
Net loans (charged-off) recovered | (3,951) |  |  | (320) |  |  | 0 |  |  | 0 |  |  | 10 |  |  | (281) |  |  | 0 |  |  | (4,542) |
Ending balance | $ | 35,290 |  |  | $ | 27,394 |  |  | $ | 4,429 |  |  | $ | 917 |  |  | $ | 3,001 |  |  | $ | 1,021 |  |  | $ | 554 |  |  | $ | 72,606 |
NOTE 4 – ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY (continued) Credit Quality Indicators: The Company categorizes 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. The Company analyzes commercial loans individually by classifying the loans as to credit risk. This analysis is performed on a quarterly basis for Special Mention, Substandard and Doubtful grade loans and annually on Pass grade loans over $250,000. The Company uses the following definitions for risk ratings: 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 institution’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 so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized as the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful. Loans classified as Doubtful have all the weaknesses inherent in those classified as Substandard, with the added characteristics that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loans are considered to be "Pass" rated when they are reviewed as part of the previously described process and do not meet the criteria above with the exception of consumer troubled debt restructurings, which are evaluated and listed with Substandard commercial grade loans and consumer nonaccrual loans which are evaluated individually and listed with "Not Rated" loans. Loans listed as Not Rated are consumer loans or commercial loans with consumer characteristics included in groups of homogenous loans which are analyzed for credit quality indicators utilizing delinquency status. The following tables summarize the risk category of loans by loan segment and origination date as of December 31, 2024 and 2023. Balances presented are at the amortized cost basis by origination year.
(dollars in thousands) | 2024 |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | Prior |  | Term Total |  | Revolving |  | Total
Commercial and industrial loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Working capital lines of credit loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 1,599 |  |  | $ | 114 |  |  | $ | 1,640 |  |  | $ | 1,647 |  |  | $ | 651 |  |  | $ | 0 |  |  | $ | 5,651 |  |  | $ | 525,179 |  |  | $ | 530,830 |
Special Mention | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 48,301 |  |  | 48,301 |
Substandard | 0 |  |  | 0 |  |  | 933 |  |  | 0 |  |  | 195 |  |  | 219 |  |  | 1,347 |  |  | 25,878 |  |  | 27,225 |
Doubtful | 0 |  |  | 3,090 |  |  | 39,994 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 43,084 |  |  | 0 |  |  | 43,084 |
Total | 1,599 |  |  | 3,204 |  |  | 42,567 |  |  | 1,647 |  |  | 846 |  |  | 219 |  |  | 50,082 |  |  | 599,358 |  |  | 649,440 |
Working capital lines of credit loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross write offs | 0 |  |  | 0 |  |  | 94 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 94 |  |  | 136 |  |  | 230 |
Non-working capital loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 151,920 |  |  | 157,276 |  |  | 173,274 |  |  | 58,591 |  |  | 32,909 |  |  | 28,582 |  |  | 602,552 |  |  | 164,106 |  |  | 766,658 |
Special Mention | 3,901 |  |  | 2,614 |  |  | 2,024 |  |  | 1,637 |  |  | 393 |  |  | 1,894 |  |  | 12,463 |  |  | 6,491 |  |  | 18,954 |
Substandard | 0 |  |  | 2,986 |  |  | 1,598 |  |  | 107 |  |  | 4,142 |  |  | 584 |  |  | 9,417 |  |  | 406 |  |  | 9,823 |
Doubtful | 0 |  |  | 0 |  |  | 0 |  |  | 21 |  |  | 386 |  |  | 0 |  |  | 407 |  |  | 0 |  |  | 407 |
Not Rated | 1,297 |  |  | 1,657 |  |  | 1,149 |  |  | 395 |  |  | 395 |  |  | 23 |  |  | 4,916 |  |  | 0 |  |  | 4,916 |
Total | 157,118 |  |  | 164,533 |  |  | 178,045 |  |  | 60,751 |  |  | 38,225 |  |  | 31,083 |  |  | 629,755 |  |  | 171,003 |  |  | 800,758 |
Non-working capital loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross write offs | 0 |  |  | 383 |  |  | 0 |  |  | 542 |  |  | 179 |  |  | 44 |  |  | 1,148 |  |  | 237 |  |  | 1,385 |
Commercial real estate and multi-family residential loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction and land development loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 23,264 |  |  | 69,737 |  |  | 43,228 |  |  | 2,566 |  |  | 0 |  |  | 0 |  |  | 138,795 |  |  | 426,577 |  |  | 565,372 |
Special Mention | 603 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 603 |  |  | 0 |  |  | 603 |
Total | 23,867 |  |  | 69,737 |  |  | 43,228 |  |  | 2,566 |  |  | 0 |  |  | 0 |  |  | 139,398 |  |  | 426,577 |  |  | 565,975 |
Construction and land development loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross write offs | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |
Owner occupied loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 98,847 |  |  | 138,299 |  |  | 120,191 |  |  | 143,642 |  |  | 109,451 |  |  | 129,051 |  |  | 739,481 |  |  | 35,003 |  |  | 774,484 |
Special Mention | 6,295 |  |  | 2,728 |  |  | 14,777 |  |  | 0 |  |  | 619 |  |  | 2,488 |  |  | 26,907 |  |  | 0 |  |  | 26,907 |
Substandard | 318 |  |  | 318 |  |  | 0 |  |  | 3,101 |  |  | 1,457 |  |  | 0 |  |  | 5,194 |  |  | 0 |  |  | 5,194 |
Total | 105,460 |  |  | 141,345 |  |  | 134,968 |  |  | 146,743 |  |  | 111,527 |  |  | 131,539 |  |  | 771,582 |  |  | 35,003 |  |  | 806,585 |
Owner occupied loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross write offs | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 840 |  |  | 840 |  |  | 0 |  |  | 840 |
Nonowner occupied loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 152,963 |  |  | 118,517 |  |  | 168,387 |  |  | 101,064 |  |  | 119,612 |  |  | 77,497 |  |  | 738,040 |  |  | 110,441 |  |  | 848,481 |
Special Mention | 0 |  |  | 15,650 |  |  | 108 |  |  | 5,868 |  |  | 0 |  |  | 0 |  |  | 21,626 |  |  | 1,895 |  |  | 23,521 |
Total | 152,963 |  |  | 134,167 |  |  | 168,495 |  |  | 106,932 |  |  | 119,612 |  |  | 77,497 |  |  | 759,666 |  |  | 112,336 |  |  | 872,002 |
NOTE 4 – ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY (continued)
(dollars in thousands) | 2024 |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | Prior |  | Term Total |  | Revolving |  | Total
Nonowner occupied loans (continued): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross write offs | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |
Multi-family loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 70,497 |  |  | 61,679 |  |  | 11,708 |  |  | 52,995 |  |  | 29,177 |  |  | 9,794 |  |  | 235,850 |  |  | 108,486 |  |  | 344,336 |
Special Mention | 0 |  |  | 0 |  |  | 307 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 307 |  |  | 0 |  |  | 307 |
Total | 70,497 |  |  | 61,679 |  |  | 12,015 |  |  | 52,995 |  |  | 29,177 |  |  | 9,794 |  |  | 236,157 |  |  | 108,486 |  |  | 344,643 |
Multi-family loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross write offs | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |
Agri-business and agricultural loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans secured by farmland: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 14,574 |  |  | 21,241 |  |  | 29,601 |  |  | 23,043 |  |  | 25,192 |  |  | 18,312 |  |  | 131,963 |  |  | 24,249 |  |  | 156,212 |
Special Mention | 122 |  |  | 209 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 331 |  |  | 0 |  |  | 331 |
Substandard | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 71 |  |  | 71 |  |  | 0 |  |  | 71 |
Total | 14,696 |  |  | 21,450 |  |  | 29,601 |  |  | 23,043 |  |  | 25,192 |  |  | 18,383 |  |  | 132,365 |  |  | 24,249 |  |  | 156,614 |
Loans secured by farmland: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross write offs | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |
Loans for agricultural production: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 15,945 |  |  | 26,704 |  |  | 21,611 |  |  | 24,374 |  |  | 21,446 |  |  | 1,450 |  |  | 111,530 |  |  | 118,090 |  |  | 229,620 |
Special Mention | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 1,275 |  |  | 1,275 |
Total | 15,945 |  |  | 26,704 |  |  | 21,611 |  |  | 24,374 |  |  | 21,446 |  |  | 1,450 |  |  | 111,530 |  |  | 119,365 |  |  | 230,895 |
Loans for agricultural production: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross write offs | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |
Other commercial loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 6,639 |  |  | 17,137 |  |  | 29,985 |  |  | 3,397 |  |  | 11,310 |  |  | 5,544 |  |  | 74,012 |  |  | 19,609 |  |  | 93,621 |
Special Mention | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 1,872 |  |  | 1,872 |  |  | 0 |  |  | 1,872 |
Total | 6,639 |  |  | 17,137 |  |  | 29,985 |  |  | 3,397 |  |  | 11,310 |  |  | 7,416 |  |  | 75,884 |  |  | 19,609 |  |  | 95,493 |
Other commercial loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross write offs | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |
Consumer 1-4 family mortgage loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Closed end first mortgage loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 11,104 |  |  | 8,511 |  |  | 9,274 |  |  | 11,278 |  |  | 6,252 |  |  | 4,685 |  |  | 51,104 |  |  | 4,299 |  |  | 55,403 |
Special Mention | 122 |  |  | 226 |  |  | 165 |  |  | 66 |  |  | 0 |  |  | 0 |  |  | 579 |  |  | 0 |  |  | 579 |
Substandard | 0 |  |  | 83 |  |  | 319 |  |  | 90 |  |  | 0 |  |  | 629 |  |  | 1,121 |  |  | 0 |  |  | 1,121 |
Not Rated | 28,706 |  |  | 55,641 |  |  | 47,355 |  |  | 34,173 |  |  | 13,543 |  |  | 22,396 |  |  | 201,814 |  |  | 0 |  |  | 201,814 |
Total | 39,932 |  |  | 64,461 |  |  | 57,113 |  |  | 45,607 |  |  | 19,795 |  |  | 27,710 |  |  | 254,618 |  |  | 4,299 |  |  | 258,917 |
Closed end first mortgage loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross write offs | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |
Open end and junior lien loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 574 |  |  | 738 |  |  | 0 |  |  | 438 |  |  | 0 |  |  | 5 |  |  | 1,755 |  |  | 10,090 |  |  | 11,845 |
Special Mention | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 309 |  |  | 0 |  |  | 309 |  |  | 0 |  |  | 309 |
NOTE 4 – ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY (continued)
(dollars in thousands) | 2024 |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | Prior |  | Term Total |  | Revolving |  | Total
Open end and junior lien loans (continued): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Substandard | 0 |  |  | 104 |  |  | 0 |  |  | 15 |  |  | 0 |  |  | 81 |  |  | 200 |  |  | 118 |  |  | 318 |
Not Rated | 21,929 |  |  | 16,134 |  |  | 18,053 |  |  | 4,660 |  |  | 644 |  |  | 2,894 |  |  | 64,314 |  |  | 139,351 |  |  | 203,665 |
Total | 22,503 |  |  | 16,976 |  |  | 18,053 |  |  | 5,113 |  |  | 953 |  |  | 2,980 |  |  | 66,578 |  |  | 149,559 |  |  | 216,137 |
Open end and junior lien loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross write offs | 0 |  |  | 0 |  |  | 79 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 79 |  |  | 15 |  |  | 94 |
Residential construction loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Not Rated | 10,030 |  |  | 1,154 |  |  | 2,045 |  |  | 1,386 |  |  | 759 |  |  | 1,348 |  |  | 16,722 |  |  | 0 |  |  | 16,722 |
Total | 10,030 |  |  | 1,154 |  |  | 2,045 |  |  | 1,386 |  |  | 759 |  |  | 1,348 |  |  | 16,722 |  |  | 0 |  |  | 16,722 |
Residential construction loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross write offs | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |
Other consumer loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 79 |  |  | 971 |  |  | 234 |  |  | 109 |  |  | 0 |  |  | 0 |  |  | 1,393 |  |  | 20,742 |  |  | 22,135 |
Special Mention | 0 |  |  | 0 |  |  | 475 |  |  | 0 |  |  | 157 |  |  | 0 |  |  | 632 |  |  | 0 |  |  | 632 |
Substandard | 0 |  |  | 128 |  |  | 54 |  |  | 76 |  |  | 17 |  |  | 0 |  |  | 275 |  |  | 0 |  |  | 275 |
Not Rated | 23,508 |  |  | 22,250 |  |  | 11,824 |  |  | 6,688 |  |  | 3,743 |  |  | 1,782 |  |  | 69,795 |  |  | 10,930 |  |  | 80,725 |
Total | 23,587 |  |  | 23,349 |  |  | 12,587 |  |  | 6,873 |  |  | 3,917 |  |  | 1,782 |  |  | 72,095 |  |  | 31,672 |  |  | 103,767 |
Other consumer loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross write offs | 49 |  |  | 303 |  |  | 236 |  |  | 33 |  |  | 0 |  |  | 26 |  |  | 647 |  |  | 272 |  |  | 919 |
Total Loans | $ | 644,836 |  |  | $ | 745,896 |  |  | $ | 750,313 |  |  | $ | 481,427 |  |  | $ | 382,759 |  |  | $ | 311,201 |  |  | $ | 3,316,432 |  |  | $ | 1,801,516 |  |  | $ | 5,117,948 |
Total current period gross write offs | $ | 49 |  |  | $ | 686 |  |  | $ | 409 |  |  | $ | 575 |  |  | $ | 179 |  |  | $ | 910 |  |  | $ | 2,808 |  |  | $ | 660 |  |  | $ | 3,468 |
NOTE 4 – ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY (continued)
(dollars in thousands) | 2023 |  | 2022 |  | 2021 |  | 2020 |  | 2019 |  | Prior |  | Term Total |  | Revolving |  | Total
Commercial and industrial loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Working capital lines of credit loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 193 |  |  | $ | 1,876 |  |  | $ | 2,214 |  |  | $ | 1,132 |  |  | $ | 0 |  |  | $ | 50 |  |  | $ | 5,465 |  |  | $ | 532,086 |  |  | $ | 537,551 |
Special Mention | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 46,498 |  |  | 46,498 |
Substandard | 0 |  |  | 200 |  |  | 0 |  |  | 0 |  |  | 125 |  |  | 0 |  |  | 325 |  |  | 20,516 |  |  | 20,841 |
Total | 193 |  |  | 2,076 |  |  | 2,214 |  |  | 1,132 |  |  | 125 |  |  | 50 |  |  | 5,790 |  |  | 599,100 |  |  | 604,890 |
Working capital lines of credit loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross write offs | 0 |  |  | 0 |  |  | 75 |  |  | 0 |  |  | 139 |  |  | 0 |  |  | 214 |  |  | 327 |  |  | 541 |
Non-working capital loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 199,071 |  |  | 224,333 |  |  | 85,273 |  |  | 49,999 |  |  | 28,773 |  |  | 10,501 |  |  | 597,950 |  |  | 171,264 |  |  | 769,214 |
Special Mention | 4,038 |  |  | 9,577 |  |  | 1,051 |  |  | 2,498 |  |  | 2,306 |  |  | 4,298 |  |  | 23,768 |  |  | 5,477 |  |  | 29,245 |
Substandard | 3,754 |  |  | 1,612 |  |  | 683 |  |  | 3,892 |  |  | 51 |  |  | 218 |  |  | 10,210 |  |  | 397 |  |  | 10,607 |
Not Rated | 2,585 |  |  | 1,999 |  |  | 881 |  |  | 707 |  |  | 162 |  |  | 18 |  |  | 6,352 |  |  | 0 |  |  | 6,352 |
Total | 209,448 |  |  | 237,521 |  |  | 87,888 |  |  | 57,096 |  |  | 31,292 |  |  | 15,035 |  |  | 638,280 |  |  | 177,138 |  |  | 815,418 |
Non-working capital loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross write offs | 0 |  |  | 5,445 |  |  | 0 |  |  | 178 |  |  | 129 |  |  | 0 |  |  | 5,752 |  |  | 48 |  |  | 5,800 |
Commercial real estate and multi-family residential loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction and land development loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 50,693 |  |  | 15,558 |  |  | 17,655 |  |  | 0 |  |  | 177 |  |  | 0 |  |  | 84,083 |  |  | 547,570 |  |  | 631,653 |
Total | 50,693 |  |  | 15,558 |  |  | 17,655 |  |  | 0 |  |  | 177 |  |  | 0 |  |  | 84,083 |  |  | 547,570 |  |  | 631,653 |
Construction and land development loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross write offs | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |
Owner occupied loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 144,411 |  |  | 132,850 |  |  | 156,680 |  |  | 132,407 |  |  | 61,415 |  |  | 118,406 |  |  | 746,169 |  |  | 40,288 |  |  | 786,457 |
Special Mention | 7,597 |  |  | 686 |  |  | 4,913 |  |  | 0 |  |  | 1,394 |  |  | 2,245 |  |  | 16,835 |  |  | 14,739 |  |  | 31,574 |
Substandard | 362 |  |  | 250 |  |  | 3,325 |  |  | 1,474 |  |  | 345 |  |  | 1,161 |  |  | 6,917 |  |  | 0 |  |  | 6,917 |
Total | 152,370 |  |  | 133,786 |  |  | 164,918 |  |  | 133,881 |  |  | 63,154 |  |  | 121,812 |  |  | 769,921 |  |  | 55,027 |  |  | 824,948 |
Owner occupied loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross write offs | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |
Nonowner occupied loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 123,633 |  |  | 158,415 |  |  | 112,582 |  |  | 134,050 |  |  | 87,288 |  |  | 66,755 |  |  | 682,723 |  |  | 27,860 |  |  | 710,583 |
Special Mention | 4,503 |  |  | 0 |  |  | 6,257 |  |  | 0 |  |  | 0 |  |  | 2,246 |  |  | 13,006 |  |  | 0 |  |  | 13,006 |
Total | 128,136 |  |  | 158,415 |  |  | 118,839 |  |  | 134,050 |  |  | 87,288 |  |  | 69,001 |  |  | 695,729 |  |  | 27,860 |  |  | 723,589 |
Nonowner occupied loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross write offs | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |
Multi-family loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 90,954 |  |  | 23,315 |  |  | 9,042 |  |  | 35,648 |  |  | 13,971 |  |  | 14,609 |  |  | 187,539 |  |  | 45,987 |  |  | 233,526 |
Special Mention | 19,671 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 19,671 |  |  | 0 |  |  | 19,671 |
Total | 110,625 |  |  | 23,315 |  |  | 9,042 |  |  | 35,648 |  |  | 13,971 |  |  | 14,609 |  |  | 207,210 |  |  | 45,987 |  |  | 253,197 |
NOTE 4 – ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY (continued)
(dollars in thousands) | 2023 |  | 2022 |  | 2021 |  | 2020 |  | 2019 |  | Prior |  | Term Total |  | Revolving |  | Total
Multi-family loans (continued): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross write offs | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |
Agri-business and agricultural loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans secured by farmland: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 24,503 |  |  | 32,060 |  |  | 25,308 |  |  | 27,924 |  |  | 9,104 |  |  | 19,160 |  |  | 138,059 |  |  | 24,724 |  |  | 162,783 |
Substandard | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 100 |  |  | 100 |  |  | 0 |  |  | 100 |
Total | 24,503 |  |  | 32,060 |  |  | 25,308 |  |  | 27,924 |  |  | 9,104 |  |  | 19,260 |  |  | 138,159 |  |  | 24,724 |  |  | 162,883 |
Loans secured by farmland: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross write offs | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |
Loans for agricultural production: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 28,657 |  |  | 13,589 |  |  | 27,175 |  |  | 25,504 |  |  | 3,533 |  |  | 10,429 |  |  | 108,887 |  |  | 116,406 |  |  | 225,293 |
Special Mention | 0 |  |  | 0 |  |  | 187 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 187 |  |  | 500 |  |  | 687 |
Total | 28,657 |  |  | 13,589 |  |  | 27,362 |  |  | 25,504 |  |  | 3,533 |  |  | 10,429 |  |  | 109,074 |  |  | 116,906 |  |  | 225,980 |
Loans for agricultural production: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross write offs | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |
Other commercial loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 7,058 |  |  | 26,918 |  |  | 33,247 |  |  | 13,684 |  |  | 90 |  |  | 7,332 |  |  | 88,329 |  |  | 29,819 |  |  | 118,148 |
Special Mention | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 2,419 |  |  | 2,419 |  |  | 0 |  |  | 2,419 |
Total | 7,058 |  |  | 26,918 |  |  | 33,247 |  |  | 13,684 |  |  | 90 |  |  | 9,751 |  |  | 90,748 |  |  | 29,819 |  |  | 120,567 |
Other commercial loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross write offs | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |
Consumer 1-4 family mortgage loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Closed end first mortgage loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 9,910 |  |  | 10,541 |  |  | 12,486 |  |  | 8,614 |  |  | 3,924 |  |  | 4,625 |  |  | 50,100 |  |  | 8,330 |  |  | 58,430 |
Special Mention | 0 |  |  | 0 |  |  | 0 |  |  | 519 |  |  | 0 |  |  | 0 |  |  | 519 |  |  | 0 |  |  | 519 |
Substandard | 87 |  |  | 0 |  |  | 96 |  |  | 123 |  |  | 0 |  |  | 253 |  |  | 559 |  |  | 0 |  |  | 559 |
Not Rated | 64,233 |  |  | 51,018 |  |  | 38,014 |  |  | 17,432 |  |  | 4,314 |  |  | 23,225 |  |  | 198,236 |  |  | 0 |  |  | 198,236 |
Total | 74,230 |  |  | 61,559 |  |  | 50,596 |  |  | 26,688 |  |  | 8,238 |  |  | 28,103 |  |  | 249,414 |  |  | 8,330 |  |  | 257,744 |
Closed end first mortgage loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross write offs | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |
Open end and junior lien loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 557 |  |  | 137 |  |  | 491 |  |  | 335 |  |  | 0 |  |  | 6 |  |  | 1,526 |  |  | 8,689 |  |  | 10,215 |
Substandard | 108 |  |  | 0 |  |  | 23 |  |  | 0 |  |  | 26 |  |  | 48 |  |  | 205 |  |  | 68 |  |  | 273 |
Not Rated | 24,792 |  |  | 29,648 |  |  | 8,471 |  |  | 1,554 |  |  | 2,286 |  |  | 1,962 |  |  | 68,713 |  |  | 112,371 |  |  | 181,084 |
Total | 25,457 |  |  | 29,785 |  |  | 8,985 |  |  | 1,889 |  |  | 2,312 |  |  | 2,016 |  |  | 70,444 |  |  | 121,128 |  |  | 191,572 |
Open end and junior lien loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross write offs | 0 |  |  | 50 |  |  | 14 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 64 |  |  | 99 |  |  | 163 |
Residential construction loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Not Rated | 1,525 |  |  | 2,982 |  |  | 1,515 |  |  | 839 |  |  | 263 |  |  | 1,220 |  |  | 8,344 |  |  | 0 |  |  | 8,344 |
Total | 1,525 |  |  | 2,982 |  |  | 1,515 |  |  | 839 |  |  | 263 |  |  | 1,220 |  |  | 8,344 |  |  | 0 |  |  | 8,344 |
NOTE 4 – ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY (continued)
(dollars in thousands) | 2023 |  | 2022 |  | 2021 |  | 2020 |  | 2019 |  | Prior |  | Term Total |  | Revolving |  | Total
Residential construction loans (continued): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current gross period write offs | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |
Other consumer loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 1,082 |  |  | 789 |  |  | 1,391 |  |  | 301 |  |  | 0 |  |  | 0 |  |  | 3,563 |  |  | 11,894 |  |  | 15,457 |
Substandard | 40 |  |  | 34 |  |  | 35 |  |  | 0 |  |  | 2 |  |  | 0 |  |  | 111 |  |  | 0 |  |  | 111 |
Not Rated | 32,481 |  |  | 17,585 |  |  | 9,994 |  |  | 6,008 |  |  | 1,611 |  |  | 1,957 |  |  | 69,636 |  |  | 10,545 |  |  | 80,181 |
Total | 33,603 |  |  | 18,408 |  |  | 11,420 |  |  | 6,309 |  |  | 1,613 |  |  | 1,957 |  |  | 73,310 |  |  | 22,439 |  |  | 95,749 |
Other consumer loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current gross period write offs | 16 |  |  | 258 |  |  | 90 |  |  | 8 |  |  | 212 |  |  | 1 |  |  | 585 |  |  | 243 |  |  | 828 |
TOTAL | $ | 846,498 |  |  | $ | 755,972 |  |  | $ | 558,989 |  |  | $ | 464,644 |  |  | $ | 221,160 |  |  | $ | 293,243 |  |  | $ | 3,140,506 |  |  | $ | 1,776,028 |  |  | $ | 4,916,534 |
Total current period gross write offs | $ | 16 |  |  | $ | 5,753 |  |  | $ | 179 |  |  | $ | 186 |  |  | $ | 480 |  |  | $ | 1 |  |  | $ | 6,615 |  |  | $ | 717 |  |  | $ | 7,332 |
As of December 31, 2024 and 2023, $1.2 million and $1.3 million, respectively, in PPP loans were included in the "Pass" category of non-working capital commercial and industrial loans. These loans were included in this risk rating category because they are fully guaranteed by the Small Business Administration ("SBA"). Nonaccrual and Past Due Loans: For all loan classes, a loan is generally placed on nonaccrual status when principal or interest becomes 90 days past due unless it is well secured and in process of collection, or earlier when concern exists as to the ultimate collectability of principal or interest. Interest accrued but not received is reversed against earnings. Cash interest received on these loans is applied to the principal balance until the principal is recovered or until the loan returns to accrual status. Loans may be returned to accrual status when all the principal and interest amounts contractually due are brought current, remain current for a prescribed period, and the payments are reasonably assured. The following table presents the aging of the amortized cost basis in past due loans as of December 31, 2024 and 2023 by class of loans and loans past due 90 days or more and still accruing by class of loan:
(dollars in thousands) |  | Loans Not Past Due |  | 30-89 Days Past Due |  | Greater than 89 Days Past Due and Accruing |  | Total Accruing |  | Total Nonaccrual |  | Nonaccrual With No Allowance For Credit Loss |  | Total
2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Working capital lines of credit loans |  | $ | 603,016 |  |  | $ | 1,082 |  |  | $ | 0 |  |  | $ | 604,098 |  |  | $ | 45,342 |  |  | $ | 594 |  |  | $ | 649,440 |
Non-working capital loans |  | 792,577 |  |  | 663 |  |  | 3 |  |  | 793,243 |  |  | 7,515 |  |  | 37 |  |  | 800,758 |
Commercial real estate and multi-family residential loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction and land development loans |  | 565,975 |  |  | 0 |  |  | 0 |  |  | 565,975 |  |  | 0 |  |  | 0 |  |  | 565,975 |
Owner occupied loans |  | 804,810 |  |  | 0 |  |  | 0 |  |  | 804,810 |  |  | 1,775 |  |  | 318 |  |  | 806,585 |
Nonowner occupied loans |  | 872,002 |  |  | 0 |  |  | 0 |  |  | 872,002 |  |  | 0 |  |  | 0 |  |  | 872,002 |
Multi-family loans |  | 344,643 |  |  | 0 |  |  | 0 |  |  | 344,643 |  |  | 0 |  |  | 0 |  |  | 344,643 |
Agri-business and agricultural loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans secured by farmland |  | 156,543 |  |  | 0 |  |  | 0 |  |  | 156,543 |  |  | 71 |  |  | 0 |  |  | 156,614 |
Loans for agricultural production |  | 230,895 |  |  | 0 |  |  | 0 |  |  | 230,895 |  |  | 0 |  |  | 0 |  |  | 230,895 |
Other commercial loans |  | 95,493 |  |  | 0 |  |  | 0 |  |  | 95,493 |  |  | 0 |  |  | 0 |  |  | 95,493 |
Consumer 1‑4 family mortgage loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Closed end first mortgage loans |  | 256,486 |  |  | 1,284 |  |  | 26 |  |  | 257,796 |  |  | 1,121 |  |  | 665 |  |  | 258,917 |
Open end and junior lien loans |  | 215,505 |  |  | 314 |  |  | 0 |  |  | 215,819 |  |  | 318 |  |  | 318 |  |  | 216,137 |
Residential construction loans |  | 16,722 |  |  | 0 |  |  | 0 |  |  | 16,722 |  |  | 0 |  |  | 0 |  |  | 16,722 |
Other consumer loans |  | 102,565 |  |  | 927 |  |  | 0 |  |  | 103,492 |  |  | 275 |  |  | 17 |  |  | 103,767 |
Total |  | $ | 5,057,232 |  |  | $ | 4,270 |  |  | $ | 29 |  |  | $ | 5,061,531 |  |  | $ | 56,417 |  |  | $ | 1,949 |  |  | $ | 5,117,948 |
An insignificant amount of interest income was recognized on nonaccrual loans during the twelve months ended December 31, 2024. NOTE 4 – ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY (continued)
(dollars in thousands) |  | Loans Not Past Due |  | 30-89 Days Past Due |  | Greater than 89 Days Past Due and Accruing |  | Total Accruing |  | Total Nonaccrual |  | Nonaccrual With No Allowance For Credit Loss |  | Total
2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Working capital lines of credit loans |  | $ | 602,236 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 602,236 |  |  | $ | 2,654 |  |  | $ | 0 |  |  | $ | 604,890 |
Non-working capital loans |  | 805,305 |  |  | 1,372 |  |  | 0 |  |  | 806,677 |  |  | 8,741 |  |  | 244 |  |  | 815,418 |
Commercial real estate and multi-family residential loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction and land development loans |  | 631,653 |  |  | 0 |  |  | 0 |  |  | 631,653 |  |  | 0 |  |  | 0 |  |  | 631,653 |
Owner occupied loans |  | 821,701 |  |  | 0 |  |  | 0 |  |  | 821,701 |  |  | 3,247 |  |  | 1,161 |  |  | 824,948 |
Nonowner occupied loans |  | 723,589 |  |  | 0 |  |  | 0 |  |  | 723,589 |  |  | 0 |  |  | 0 |  |  | 723,589 |
Multi-family loans |  | 253,197 |  |  | 0 |  |  | 0 |  |  | 253,197 |  |  | 0 |  |  | 0 |  |  | 253,197 |
Agri-business and agricultural loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans secured by farmland |  | 162,783 |  |  | 0 |  |  | 0 |  |  | 162,783 |  |  | 100 |  |  | 0 |  |  | 162,883 |
Loans for agricultural production |  | 225,980 |  |  | 0 |  |  | 0 |  |  | 225,980 |  |  | 0 |  |  | 0 |  |  | 225,980 |
Other commercial loans |  | 120,567 |  |  | 0 |  |  | 0 |  |  | 120,567 |  |  | 0 |  |  | 0 |  |  | 120,567 |
Consumer 1‑4 family mortgage loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Closed end first mortgage loans |  | 256,016 |  |  | 1,142 |  |  | 27 |  |  | 257,185 |  |  | 559 |  |  | 329 |  |  | 257,744 |
Open end and junior lien loans |  | 190,956 |  |  | 344 |  |  | 0 |  |  | 191,300 |  |  | 272 |  |  | 164 |  |  | 191,572 |
Residential construction loans |  | 8,344 |  |  | 0 |  |  | 0 |  |  | 8,344 |  |  | 0 |  |  | 0 |  |  | 8,344 |
Other consumer loans |  | 95,135 |  |  | 502 |  |  | 0 |  |  | 95,637 |  |  | 112 |  |  | 3 |  |  | 95,749 |
Total |  | $ | 4,897,462 |  |  | $ | 3,360 |  |  | $ | 27 |  |  | $ | 4,900,849 |  |  | $ | 15,685 |  |  | $ | 1,901 |  |  | $ | 4,916,534 |
An insignificant amount of interest income was recognized on nonaccrual loans during the twelve months ended December 31, 2023. When management determines that foreclosure is probable, expected credit losses for collateral dependent loans are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. A loan is considered collateral dependent when the borrower is experiencing financial difficulty and the loan is expected to be repaid substantially through the operation or sale of the collateral. The class of loan represents the primary collateral type associated with the loan. Significant year over year changes are reflective of changes in nonaccrual status and not necessarily associated with credit quality indicators like appraisal value. The following tables present the amortized cost basis of collateral dependent loans by class of loan as of December 31, 2024 and 2023:
(dollars in thousands) |  | Real Estate |  | General Business Assets |  | Other |  | Total
2024 |  |  |  |  |  |  |  |
Commercial and industrial loans: |  |  |  |  |  |  |  |
Working capital lines of credit loans |  | $ | 50 |  |  | $ | 64,023 |  |  | $ | 447 |  |  | $ | 64,520 |
Non-working capital loans |  | 1,891 |  |  | 6,585 |  |  | 19 |  |  | 8,495 |
Commercial real estate and multi-family residential loans: |  |  |  |  |  |  |  |
Owner occupied loans |  | 318 |  |  | 3,512 |  |  | 0 |  |  | 3,830 |
Nonowner occupied loans |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |
Agri-business and agricultural loans: |  |  |  |  |  |  |  |
Loans secured by farmland |  | 0 |  |  | 71 |  |  | 0 |  |  | 71 |
Consumer 1-4 family mortgage loans: |  |  |  |  |  |  |  |
Closed end first mortgage loans |  | 1,121 |  |  | 0 |  |  | 0 |  |  | 1,121 |
Open end and junior lien loans |  | 318 |  |  | 0 |  |  | 0 |  |  | 318 |
Other consumer loans |  | 0 |  |  | 0 |  |  | 272 |  |  | 272 |
Total |  | $ | 3,698 |  |  | $ | 74,191 |  |  | $ | 738 |  |  | $ | 78,627 |
(dollars in thousands) |  | Real Estate |  | General Business Assets |  | Other |  | Total
2023 |  |  |  |  |  |  |  |
Commercial and industrial loans: |  |  |  |  |  |  |  |
Working capital lines of credit loans |  | $ | 50 |  |  | $ | 2,454 |  |  | $ | 0 |  |  | $ | 2,504 |
Non-working capital loans |  | 40 |  |  | 8,202 |  |  | 400 |  |  | 8,642 |
Commercial real estate and multi-family residential loans: |  |  |  |  |  |  |  |
Owner occupied loans |  | 595 |  |  | 1,474 |  |  | 1,161 |  |  | 3,230 |
Nonowner occupied loans |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |
Agri-business and agricultural loans: |  |  |  |  |  |  |  |
Loans secured by farmland |  | 0 |  |  | 100 |  |  | 0 |  |  | 100 |
Consumer 1-4 family mortgage loans: |  |  |  |  |  |  |  |
Closed end first mortgage loans |  | 559 |  |  | 0 |  |  | 0 |  |  | 559 |
Open end and junior lien loans |  | 164 |  |  | 0 |  |  | 0 |  |  | 164 |
Other consumer loans |  | 0 |  |  | 0 |  |  | 112 |  |  | 112 |
Total |  | $ | 1,408 |  |  | $ | 12,230 |  |  | $ | 1,673 |  |  | $ | 15,311 |
NOTE 4 – ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY (continued) Modifications Made to Borrowers Experiencing Financial Difficulty The allowance for credit losses incorporates an estimate of lifetime expected credit losses and is recorded on each asset upon origination. The starting point to estimate such credit losses is historical loss information. The Company uses a probability of default/loss given default model to determine the allowance for credit losses recorded at origination. Occasionally, the Company subsequently modifies loans for borrowers experiencing financial distress by providing the following forms of relief: forgiveness of loan principal, extension of repayment terms, reduction of interest rate or an other than insignificant payment delay. In some instances, the Company provides multiple types of concessions for such modifications. Because the effect of most modifications to borrowers experiencing financial difficulty is already included in the allowance for credit losses, no change to the allowance for credit losses is generally recorded for these modifications. During the twelve months ended December 31, 2024, there were an insignificant amount of modifications to borrowers experiencing financial difficulty. The following table presents the amortized cost basis at the end of the reporting period of loans that were experiencing financial difficulty and received a modification of terms during the twelve months ended December 31, 2023, by class and 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 receivables at the end of the reporting period is also presented below:
(dollars in thousands) |  | Interest Rate Reduction |  | Combination Interest Rate Reduction, Term Extension and Payment Delay |  | Combination Principal Forgiveness, Interest Rate Reduction, Term Extension and Payment Delay |  | Total Modifications |  | Total Class of Financing Receivable
Twelve Months Ended December 31, 2023 |  |  |  |  |  |  |  |  |  |
Commercial and industrial loans: |  |  |  |  |  |  |  |  |  |
Working capital lines of credit loans |  | $ | 944 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 944 |  |  | 0.16 | %
Non-working capital loans |  | 0 |  |  | 1,912 |  |  | 1,572 |  |  | 3,484 |  |  | 0.43 |
Total commercial and industrial loans |  | 944 |  |  | 1,912 |  |  | 1,572 |  |  | 4,428 |  |  | 0.31 |
Total loan modifications made to borrowers experiencing financial difficulty |  | $ | 944 |  |  | $ | 1,912 |  |  | $ | 1,572 |  |  | $ | 4,428 |  |  | 0.09 | %
The Company had no material commitments to lend additional funds to borrowers included in the previous table at December 31, 2023. NOTE 4 – ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY (continued) The following table presents the financial effect of the loan modifications presented above for material modifications to borrowers experiencing financial difficulty for the twelve months ended December 31, 2023:
(dollars in thousands) |  | Principal Forgiveness |  | Weighted Average Interest Rate Reduction |  | Weighted Average Term Extension |  | Payment Delay
Twelve Months Ended December 31, 2023 |  |  |  |  |  |  |  |
Commercial and industrial loans: |  |  |  |  |  |  |  |
Working capital lines of credit loans |  | $ | 0 |  |  | 7.50 | % |  | None |  | None
Non-working capital loans (1) |  | 9,380 |  |  | 7.87 | % |  | 58 months |  | Extension of payment terms from fully amortizing variable rate 40 month term to 60 month fixed rate term with 480 month amortization schedule, monthly interest and semiannual principal payments, and excess cash flow recapture provisions Extension of payment terms from monthly variable rate interest only payments with balloon payment at end of term to fully amortizing ten year fixed rate principal and interest payment schedule
Total commercial and industrial loans |  | 9,380 |  |  | 7.84 | % |  | 44 months |  |
Total modifications |  | $ | 9,380 |  |  | 7.84 | % |  | 44 months |  |
(1) Principal forgiveness of $9.4 million represents one $11.0 million non-working capital loan, of which $3.7 million and $5.6 million was charged off during the twelve months ended December 31, 2023 and 2022, respectively. The Company closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. At December 31, 2024, no loans receiving such a modification within the last twelve months were 30 days or greater past due. At December 31, 2024, no loans receiving a modification due to borrower financial difficulty within the last twelve months has experienced a payment default. Upon the Company's determination that a modified loan (or portion thereof) has subsequently been deemed uncollectible, the loan (or a portion thereof) 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.

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