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Loans and Allowance for Credit Losses on Loans

6 Months Ended

Jun. 30, 2024

Loans and Allowance for Credit Losses on Loans

Loans and Allowance for Credit Losses on Loans

Note 3 – Loans and Allowance for Credit Losses on Loans

Major segments of loans were as follows:


	June 30, 2024		December 31, 2023
Commercial	$	809,443	$	841,697
Leases		452,957		398,223
Commercial real estate – investor		1,014,345		1,034,424
Commercial real estate – owner occupied		745,938		796,538
Construction		185,634		165,380
Residential real estate – investor		50,371		52,595
Residential real estate – owner occupied		218,974		226,248
Multifamily		388,743		401,696
HELOC		99,037		103,237
Other ¹		11,153		22,915
Total loans		3,976,595		4,042,953
Allowance for credit losses on loans		(42,269)		(44,264)
Net loans ²	$	3,934,326	$	3,998,689

¹ The “Other” segment includes consumer loans and overdrafts in this table and in subsequent tables within Note 3 – Loans and Allowance for Credit Losses on Loans.

² Excludes accrued interest receivable of $19.4 million and $20.5 million at June 30, 2024, and December 31, 2023, respectively, that is recorded in other assets on the consolidated balance sheets.

It is the policy of the Company to review each prospective credit prior to making a loan in order to determine if an adequate level of security or collateral has been obtained. The type of collateral, when required, will vary from liquid assets to real estate. The Company seeks to ensure access to collateral, in the event of borrower default, through adherence to lending laws, the Company’s lending standards and credit monitoring procedures. Although the Bank makes loans primarily within its market area, there are no significant concentrations of loans where the customers’ ability to honor loan terms is dependent upon a single economic sector. The real estate related categories listed above represent 68.0% and 68.8% of the portfolio at June 30, 2024, and December 31, 2023, respectively, and include a mix of owner occupied and non-owner occupied commercial real estate, residential, construction and multifamily loans.

The following tables represent the activity in the allowance for credit losses for loans, or the ACL, for the three and six months ended June 30, 2024 and 2023:



			Provision for
	Beginning		(Release of)						Ending
Allowance for credit losses	Balance		Credit Losses		Charge-offs		Recoveries		Balance
Three months ended June 30, 2024
Commercial	$	6,382	$	327	$	3	$	22	$	6,728
Leases		2,959		(900)		81		-		1,978
Commercial real estate – investor		16,270		6,132		4,580		20		17,842
Commercial real estate – owner occupied		10,992		(2,650)		1,281		119		7,180
Construction		1,097		923		-		-		2,020
Residential real estate – investor		636		(30)		-		3		609
Residential real estate – owner occupied		1,660		(51)		-		9		1,618
Multifamily		2,593		211		-		-		2,804
HELOC		1,508		(40)		-		15		1,483
Other		16		28		66		29		7
Total	$	44,113	$	3,950	$	6,011	$	217	$	42,269



			Provision for
	Beginning		(Release of)						Ending
Allowance for credit losses	Balance		Credit Losses		Charge-offs		Recoveries		Balance
Six months ended June 30, 2024
Commercial	$	3,998	$	2,653	$	18	$	95	$	6,728
Leases		2,952		(933)		81		40		1,978
Commercial real estate – investor		17,105		5,230		4,596		103		17,842
Commercial real estate – owner occupied		12,280		(70)		5,168		138		7,180
Construction		1,038		982		-		-		2,020
Residential real estate – investor		669		(65)		-		5		609
Residential real estate – owner occupied		1,821		(220)		-		17		1,618
Multifamily		2,728		76		-		-		2,804
HELOC		1,656		(205)		-		32		1,483
Other		17		46		136		80		7
Total	$	44,264	$	7,494	$	9,999	$	510	$	42,269



			Provision for
	Beginning		(Release of)						Ending
Allowance for credit losses	Balance		Credit Losses		Charge-offs		Recoveries		Balance
Three months ended June 30, 2023
Commercial	$	11,511	$	319	$	380	$	82	$	11,532
Leases		2,766		(83)		-		7		2,690
Commercial real estate – investor		15,260		4,822		71		20		20,031
Commercial real estate – owner occupied		15,576		(2,816)		201		3		12,562
Construction		1,045		134		-		-		1,179
Residential real estate – investor		746		(8)		-		5		743
Residential real estate – owner occupied		1,722		110		-		36		1,868
Multifamily		2,665		72		-		-		2,737
HELOC		1,788		(118)		-		24		1,694
Other		313		(5)		81		51		278
Total	$	53,392	$	2,427	$	733	$	228	$	55,314



			Provision for
Allowance for credit losses	Beginning		(Release of)							Ending
Six months ended June 30, 2023	Balance		Credit Losses		Charge-offs		Recoveries			Balance
Commercial	$	11,968	$	(262)	$	407	$	233	$	11,532
Leases		2,865		691		882		16		2,690
Commercial real estate – investor		10,674		9,391		71		37		20,031
Commercial real estate – owner occupied		15,001		(2,243)		201		5		12,562
Construction		1,546		(367)		-		-		1,179
Residential real estate – investor		768		(49)		-		24		743
Residential real estate – owner occupied		2,046		(224)		-		46		1,868
Multifamily		2,453		284		-		-		2,737
HELOC		1,806		(165)		-		53		1,694
Other		353		23		194		96		278
Total	$	49,480	$	7,079	$	1,755	$	510	$	55,314

At June 30, 2024, our allowance for credit losses (“ACL”) on loans totaled $42.3 million, and our ACL on unfunded commitments, included in other liabilities, totaled $2.5 million. During the first six months of 2024, we recorded net provision for credit losses on loans of $7.5 million based on historical loss rate updates driven by higher charge offs in commercial real estate-investor, downward risk rating migration, and our assessment of estimated future credit losses. The ACL on loans excludes an allowance for unfunded commitments of $2.5 million as of June 30, 2024, and $2.7 million as of both December 31, 2023, and June 30, 2023, which is recorded within other liabilities.

Generally, the Bank considers a loan to be collateral dependent when, based on current information and events, it is probable that foreclosure could be initiated. Additionally, the Bank will review all loans meeting the criteria for individual analysis, to determine if repayment or satisfaction of the loan is expected through the sale of collateral. This will generally be the case for credits with high loan-to-values. Exceptions to this policy would include loans with guarantors or sponsors that have the means and willingness to support the obligation. Non-accruing loans with an outstanding balance of $500,000 or more are assessed on an individual loan level basis. When a financial asset is deemed collateral-dependent, the level of credit loss is measured by the difference between amortized cost of the financial asset and the fair value of collateral adjusted for estimated cost to sell. The Company had $38.5 million and $63.1 million of collateral dependent loans secured by real estate or business assets as of June 30, 2024, and December 31, 2023, respectively.

The following tables present the collateral dependent loans and the related ACL allocated by segment of loans as of June 30, 2024, and December 31, 2023:


			Accounts								ACL
June 30, 2024	Real Estate		Receivable		Equipment		Other		Total		Allocation
Commercial	$	-	$	825	$	508	$	1,227	$	2,560	$	1,229
Leases		-		-		-		-		-		-
Commercial real estate – investor		9,955		-		-		-		9,955		3,482
Commercial real estate – owner occupied		17,207		-		-		-		17,207		-
Construction		5,739		-		-		-		5,739		732
Residential real estate – investor		523		-		-		-		523		-
Residential real estate – owner occupied		1,640		-		-		-		1,640		-
Multifamily		839		-		-		-		839		-
HELOC		62		-		-		-		62		-
Total	$	35,965	$	825	$	508	$	1,227	$	38,525	$	5,443


			Accounts								ACL
December 31, 2023	Real Estate		Receivable		Equipment		Other		Total		Allocation
Commercial	$	837	$	797	$	-	$	-	$	1,634	$	2
Leases		-		-		321		-		321		320
Commercial real estate – investor		15,735		-		-		-		15,735		3,656
Commercial real estate – owner occupied		34,894		-		-		-		34,894		3,900
Construction		7,162		-		-		-		7,162		-
Residential real estate – investor		422		-		-		-		422		-
Residential real estate – owner occupied		1,506		-		-		-		1,506		-
Multifamily		1,402		-		-		-		1,402		-
HELOC		39		-		-		-		39		-
Total	$	61,997	$	797	$	321	$	-	$	63,115	$	7,878

Aged analysis of past due loans by segments of loans was as follows:


													90 days or
					90 Days or								Greater Past
	30-59 Days		60-89 Days		Greater Past		Total Past						Due and
June 30, 2024	Past Due		Past Due		Due		Due		Current		Total Loans		Accruing
Commercial	$	914	$	3,127	$	842	$	4,883	$	804,560	$	809,443	$	-
Leases		479		451		108		1,038		451,919		452,957		-
Commercial real estate – investor		8,150		710		838		9,698		1,004,647		1,014,345		-
Commercial real estate – owner occupied		2,103		108		20,733		22,944		722,994		745,938		4,835
Construction		-		-		5,740		5,740		179,894		185,634		-
Residential real estate – investor		-		-		621		621		49,750		50,371		-
Residential real estate – owner occupied		390		70		1,870		2,330		216,644		218,974		-
Multifamily		235		-		1,054		1,289		387,454		388,743		-
HELOC		371		63		309		743		98,294		99,037		74
Other		-		-		-		-		11,153		11,153		-
Total	$	12,642	$	4,529	$	32,115	$	49,286	$	3,927,309	$	3,976,595	$	4,909


													90 days or
					90 Days or								Greater Past
	30-59 Days		60-89 Days		Greater Past		Total Past						Due and
December 31, 2023	Past Due		Past Due		Due		Due		Current		Total Loans		Accruing
Commercial	$	982	$	-	$	1,228	$	2,210	$	839,487	$	841,697	$	1,155
Leases		599		-		347		946		397,277		398,223		-
Commercial real estate – investor		1,209		-		6,087		7,296		1,027,128		1,034,424		-
Commercial real estate – owner occupied		2,103		3,726		15,645		21,474		775,064		796,538		-
Construction		2,540		307		7,161		10,008		155,372		165,380		-
Residential real estate – investor		540		579		168		1,287		51,308		52,595		-
Residential real estate – owner occupied		553		125		1,944		2,622		223,626		226,248		-
Multifamily		1,085		-		233		1,318		400,378		401,696		-
HELOC		565		1,396		269		2,230		101,007		103,237		41
Other		-		1		-		1		22,914		22,915		-
Total	$	10,176	$	6,134	$	33,082	$	49,392	$	3,993,561	$	4,042,953	$	1,196

The table presents all nonaccrual loans as of June 30, 2024, and December 31, 2023:


Nonaccrual loan detail	June 30, 2024		With no ACL		December 31, 2023		With no ACL
Commercial	$	2,654	$	1,427	$	870	$	870
Leases		284		284		639		318
Commercial real estate – investor		9,954		2,481		16,572		8,926
Commercial real estate – owner occupied		17,256		17,256		34,946		8,429
Construction		5,740		5,740		7,162		7,162
Residential real estate – investor		1,280		1,280		1,331		1,331
Residential real estate – owner occupied		2,599		2,599		3,078		3,078
Multifamily		1,395		1,395		1,775		1,775
HELOC		795		795		1,210		1,210
Other		-		-		-		-
Total	$	41,957	$	33,257	$	67,583	$	33,099

The Company recognized $2,000 and $36,000 of interest on nonaccrual loans during the three months and six months ended June 30, 2024, respectively.

Credit Quality Indicators

The Company categorizes loans into credit risk categories based on current financial information, overall debt service coverage, comparison to industry averages, historical payment experience, and current economic trends. This analysis includes loans with outstanding balances or commitments greater than $50,000 and excludes homogeneous loans such as home equity lines of credit and residential mortgages. Loans with a classified risk rating are reviewed quarterly regardless of size or loan type. The Company uses the following definitions for classified 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 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 by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. The substandard credit quality indicator includes both potential problem loans that are currently performing and nonperforming loans.

Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Credits that are not covered by the definitions above are pass credits, which are not considered to be adversely rated.

Credit quality indicators by loan segment and loan origination date at June 30, 2024, were as follows:


	2024		2023		2022		2021		2020		Prior		Revolving Loans		Revolving Loans Converted To Term Loans		Total
Commercial
Pass	$	115,506	$	264,234	$	111,600	$	25,429	$	9,219	$	18,900	$	221,006	$		$	765,894
Special Mention		-		227		2,043		2,771		50		-		19,316		-		24,407
Substandard		-		20		6,227		144		-		-		12,751		-		19,142
Total commercial		115,506		264,481		119,870		28,344		9,269		18,900		253,073		-		809,443

Leases
Pass		131,338		186,396	$	87,390		31,893		10,335		3,290		-		-		450,642
Special Mention		-		300		775		947		-		9		-		-		2,031
Substandard		-		-		284		-		-		-		-		-		284
Total leases		131,338		186,696		88,449		32,840		10,335		3,299		-		-		452,957

Commercial real estate – investor
Pass		55,037		190,938		334,504		188,015		93,138		104,176		7,398		-		973,206
Special Mention		-		-		-		4,200		-		-		-		-		4,200
Substandard		-		1,645		-		837		5,272		16,936		12,249		-		36,939
Total commercial real estate – investor		55,037		192,583		334,504		193,052		98,410		121,112		19,647		-		1,014,345

Commercial real estate – owner occupied
Pass		17,675		131,499		150,692		159,537		86,192		113,781		14,700		-		674,076
Special Mention		-		-		18,605		2,844		-		2,026		-		-		23,475
Substandard		-		-		13,560		4,835		12,925		17,067		-		-		48,387
Total commercial real estate – owner occupied		17,675		131,499		182,857		167,216		99,117		132,874		14,700		-		745,938

Construction
Pass		15,841		44,518		90,851		26,377		91		1,614		254		-		179,546
Special Mention		-		-		348		-		-		-		-		-		348
Substandard		-		-		5,740		-		-		-		-		-		5,740
Total construction		15,841		44,518		96,939		26,377		91		1,614		254		-		185,634

Residential real estate – investor
Pass		1,321		3,908		14,032		7,851		6,062		13,199		2,089		-		48,462
Special Mention		-		-		-		566		-		-		-		-		566
Substandard		-		-		378		63		-		902		-		-		1,343
Total residential real estate – investor		1,321		3,908		14,410		8,480		6,062		14,101		2,089		-		50,371

Residential real estate – owner occupied
Pass		9,551		31,099		36,751		38,750		23,967		75,320		802		-		216,240
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		101		2,633		-		-		2,734
Total residential real estate – owner occupied		9,551		31,099		36,751		38,750		24,068		77,953		802		-		218,974

Multifamily
Pass		16,590		76,747		70,903		115,700		39,835		51,594		574		-		371,943
Special Mention		-		-		-		9,990		-		-		-		-		9,990
Substandard		-		-		1,135		3,337		514		1,824		-		-		6,810
Total multifamily		16,590		76,747		72,038		129,027		40,349		53,418		574		-		388,743

HELOC
Pass		1,471		2,629		2,421		430		1,469		4,167		85,425		-		98,012
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		40		287		698		-		1,025
Total HELOC		1,471		2,629		2,421		430		1,509		4,454		86,123		-		99,037

Other
Pass		2,800		1,953		1,401		884		96		129		3,889		-		11,152
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		1		-		1
Total other		2,800		1,953		1,401		884		96		129		3,890		-		11,153

Total loans
Pass		367,130		933,921		900,545		594,866		270,404		386,170		336,137		-		3,789,173
Special Mention		-		527		21,771		21,318		50		2,035		19,316		-		65,017
Substandard		-		1,665		27,324		9,216		18,852		39,649		25,699		-		122,405
Total loans	$	367,130	$	936,113	$	949,640	$	625,400	$	289,306	$	427,854	$	381,152	$	-	$	3,976,595

Credit quality indicators by loan segment and loan origination date at December 31, 2023, were as follows:


	2023		2022		2021		2020		2019		Prior		Revolving Loans		Revolving Loans Converted To Term Loans		Total
Commercial
Pass	$	318,569	$	136,668	$	35,901	$	11,983	$	18,390	$	3,426	$	298,931	$	1,408	$	825,276
Special Mention		-		2,737		707		171		-		-		4,392		-		8,007
Substandard		-		2,099		146		-		199		-		5,970		-		8,414
Total commercial		318,569		141,504		36,754		12,154		18,589		3,426		309,293		1,408		841,697

Leases
Pass		219,163		113,074	$	42,275		14,663		6,975		1,255		-		-		397,405
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		407		203		-		208		-		-		-		818
Total leases		219,163		113,481		42,478		14,663		7,183		1,255		-		-		398,223

Commercial real estate – investor
Pass		159,654		367,512		218,084		108,384		54,322		63,281		8,122		-		979,359
Special Mention		-		-		11,267		-		-		-		-		-		11,267
Substandard		-		-		838		5,327		15,658		9,648		12,327		-		43,798
Total commercial real estate – investor		159,654		367,512		230,189		113,711		69,980		72,929		20,449		-		1,034,424

Commercial real estate – owner occupied
Pass		124,059		134,383		177,553		103,109		42,839		91,062		33,243		-		706,248
Special Mention		1,650		17,415		9,585		3,128		218		3,681		-		-		35,677
Substandard		-		14,630		18,817		4,571		14,809		1,786		-		-		54,613
Total commercial real estate – owner occupied		125,709		166,428		205,955		110,808		57,866		96,529		33,243		-		796,538

Construction
Pass		42,808		66,513		32,942		100		1,593		1,083		3,186		-		148,225
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		9,993		-		7,162		-		-		17,155
Total construction		42,808		66,513		32,942		10,093		1,593		8,245		3,186		-		165,380

Residential real estate – investor
Pass		5,062		14,434		9,027		6,227		6,508		8,469		1,471		-		51,198
Special Mention		-		-		66		-		-		-		-		-		66
Substandard		-		390		-		-		408		533		-		-		1,331
Total residential real estate – investor		5,062		14,824		9,093		6,227		6,916		9,002		1,471		-		52,595

Residential real estate – owner occupied
Pass		32,574		41,528		40,335		25,322		14,233		68,277		763		-		223,032
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		191		685		2,340		-		-		3,216
Total residential real estate – owner occupied		32,574		41,528		40,335		25,513		14,918		70,617		763		-		226,248

Multifamily
Pass		55,310		79,060		123,834		72,539		12,231		40,825		562		-		384,361
Special Mention		-		168		13,425		322		1,645		-		-		-		15,560
Substandard		-		1,009		-		-		-		766		-		-		1,775
Total multifamily		55,310		80,237		137,259		72,861		13,876		41,591		562		-		401,696

HELOC
Pass		2,735		2,679		490		1,757		1,756		2,995		89,161		-		101,573
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		25		1		41		24		184		1,389		-		1,664
Total HELOC		2,735		2,704		491		1,798		1,780		3,179		90,550		-		103,237

Other
Pass		4,060		2,278		1,569		153		85		73		14,697		-		22,915
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-		-
Total other		4,060		2,278		1,569		153		85		73		14,697		-		22,915

Total loans
Pass		963,994		958,129		682,010		344,237		158,932		280,746		450,136		1,408		3,839,592
Special Mention		1,650		20,320		35,050		3,621		1,863		3,681		4,392		-		70,577
Substandard		-		18,560		20,005		20,123		31,991		22,419		19,686		-		132,784
Total loans	$	965,644	$	997,009	$	737,065	$	367,981	$	192,786	$	306,846	$	474,214	$	1,408	$	4,042,953

The gross charge-offs activity by loan type and year of origination for the six months ended June 30, 2024 and June 30, 2023, were as follows:


Six months ended June 30, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans		Revolving Loans Converted To Term Loans		Total
Commercial	$	-		-		-		-		-		18	$	-	$	-	$	18
Leases		-		-		28		53		-		-		-		-		81
Commercial real estate – investor		-		-		4,128		452		16		-		-		-		4,596
Commercial real estate – owner occupied		-				-		5,135		-		33		-		-		5,168
Other		-		-		-		-		-		136		-		-		136
Total	$	-	$	-	$	4,156	$	5,640	$	16	$	187		-		-	$	9,999


Six months ended June 30, 2023	2023		2022		2021		2020		2019		Prior		Revolving Loans		Revolving Loans Converted To Term Loans		Total
Commercial	$	-	$	-	$	-	$	364	$	-	$	43	$	-	$	-	$	407
Leases		-		870		-		-		12		-		-		-		882
Commercial real estate – investor		-		-		71		-		-		-		-		-		71
Commercial real estate – owner occupied		-		22		179		-		-		-		-		-		201
Other		-		3		24		8		-		159		-		-		194
Total	$	-	$	895	$	274	$	372	$	12	$	202		-		-	$	1,755

The Company had $431,000 and $170,000 in residential real estate loans in the process of foreclosure as of June 30, 2024, and December 31, 2023, respectively.

There were six loans modified during the six-month period ending June 30, 2024, totaling $16.4 million in aggregate, which were experiencing financial difficulty. There were eleven loans modified during the six-month period ending June 30, 2023, totaling $32.7 million in aggregate, which were experiencing financial difficulty. There were no modified loans experiencing financial difficulty in payment default as of June 30, 2024, and June 30, 2023.

The following tables present the amortized costs basis of loans at June 30, 2024, and June 30, 2023, that were both experiencing financial difficulty and modified during the period ended June 30, 2024, and June 30, 2023, by class and by type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financing receivable is also presented below.


June 30, 2024	Term Extension		Combination - Term Extension, Interest Rate Modification, Payment Modification, and Principal Reduction		Combination - Term Extension and Interest Rate Modification		Combination - Term Extension and Payment Modification ⁽¹⁾		Total Loans Modified		% of Total Loan Segment Modified to Total Loan Segment
Commercial	$	247	$	-	$	-	$	-	$	247	0.0%
Commercial real estate – owner occupied		12,156		491		3,269		212		16,128	2.2%
Total	$	12,403	$	491	$	3,269	$	212	$	16,375	0.4%


June 30, 2023	Term Extension		Combination - Term Extension and Interest Rate Modification		Combination - Term Extension and Payment Modification ¹		Total Loans Modified		% of Total Loan Segment Modified to Total Loan Segment
Commercial	$	859	$	979	$	-	$	1,838	0.2%
Commercial real estate – investor		12,664		-		1,774		14,438	1.3%
Commercial real estate – owner occupied		16,318		-		-		16,318	2.0%
HELOC		60		-		-		60	0.1%
Total	$	29,901	$	979	$	1,774	$	32,654	8.0%

¹ Payment modifications are either contractual delays in payment or a modificationof the payment amount.

The Company closely monitors the performance of loan modifications to borrowers experiencing financial difficulty. The following tables present the performance of loans that have been modified as of June 30, 2024, and June 30, 2023.


June 30, 2024	30-59 days past due		60-89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Current		Total Loans Modified
Commercial	$	-	$	-	$	-	$	-	$	247	$	247
Commercial real estate – owner occupied		-		-		-		-		16,128		16,128
Total	$	-	$	-	$	-	$	-	$	16,375	$	16,375


June 30, 2023	30-59 days past due		60-89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Current		Total Loans Modified
Commercial	$	-	$	-	$	-	$	-	$	1,838	$	1,838
Commercial real estate – investor		-		-		1,774		1,774		12,664		14,438
Commercial real estate – owner occupied		-		-		-		-		16,318		16,318
HELOC		-		-		-		-		60		60
Total	$	-	$	-	$	1,774	$	1,774	$	30,880	$	32,654

The following tables summarize the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the period ended June 30, 2024, and June 30, 2023. The Company had two loans that had a payment modification as of June 30, 2024. One had an increase of monthly payment until maturity and the other had a reduction of monthly payment until maturity; the financial impact of these modifications is immaterial. As of June 30, 2023, there was one loan that had a payment modification to a single payment at maturity.


June 30, 2024	Weighted-Average Term Extension (In Months)		Weighted-Average Interest Rate Change			Weighted-Average Delay of Payment (In Months)
Commercial		4.00		-	%		-
Commercial real estate – owner occupied		5.12		0.33			-
Total		5.10		0.33	%		-


June 30, 2023	Weighted-Average Term Extension (In Months)		Weighted-Average Interest Rate Change			Weighted-Average Delay of Payment (In Months)
Commercial		4.90		5.00	%		-
Commercial real estate – investor		11.50		-			7.00
Commercial real estate – owner occupied		12.00		-			-
HELOC		24.00		-			-
Total		11.40		5.00	%		7.00