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Loans and Allowance for Credit Losses on Loans

9 Months Ended

Sep. 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:


	September 30, 2024		December 31, 2023
Commercial	$	814,668	$	841,697
Leases		458,317		398,223
Commercial real estate – investor		1,045,060		1,034,424
Commercial real estate – owner occupied		718,265		796,538
Construction		206,458		165,380
Residential real estate – investor		50,332		52,595
Residential real estate – owner occupied		208,227		226,248
Multifamily		375,394		401,696
HELOC		102,611		103,237
Other ¹		11,746		22,915
Total loans		3,991,078		4,042,953
Allowance for credit losses on loans		(44,422)		(44,264)
Net loans ²	$	3,946,656	$	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 September 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 67.8% and 68.8% of the portfolio at September 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 nine months ended September 30, 2024 and 2023:



			Provision for
	Beginning		(Release of)						Ending
Allowance for credit losses	Balance		Credit Losses ¹		Charge-offs		Recoveries		Balance
Three months ended September 30, 2024
Commercial	$	6,728	$	2,950	$	33	$	40	$	9,685
Leases		1,978		40		68		25		1,975
Commercial real estate – investor		17,842		(1,154)		-		149		16,837
Commercial real estate – owner occupied		7,180		(64)		(14)		30		7,160
Construction		2,020		397		-		-		2,417
Residential real estate – investor		609		(63)		-		18		564
Residential real estate – owner occupied		1,618		111		-		11		1,740
Multifamily		2,804		(341)		-		-		2,463
HELOC		1,483		77		-		14		1,574
Other		7		45		78		33		7
Total	$	42,269	$	1,998	$	165	$	320	$	44,422

¹ Amount does not include the provision for unfunded commitment liability.



			Provision for
	Beginning		(Release of)						Ending
Allowance for credit losses	Balance		Credit Losses ¹		Charge-offs		Recoveries		Balance
Nine months ended September 30, 2024
Commercial	$	3,998	$	5,603	$	51	$	135	$	9,685
Leases		2,952		(893)		149		65		1,975
Commercial real estate – investor		17,105		4,076		4,596		252		16,837
Commercial real estate – owner occupied		12,280		(134)		5,154		168		7,160
Construction		1,038		1,379		-		-		2,417
Residential real estate – investor		669		(128)		-		23		564
Residential real estate – owner occupied		1,821		(109)		-		28		1,740
Multifamily		2,728		(265)		-		-		2,463
HELOC		1,656		(128)		-		46		1,574
Other		17		91		214		113		7
Total	$	44,264	$	9,492	$	10,164	$	830	$	44,422

¹ Amount does not include the provision for unfunded commitment liability.



			Provision for
	Beginning		(Release of)						Ending
Allowance for credit losses	Balance		Credit Losses ¹		Charge-offs		Recoveries		Balance
Three months ended September 30, 2023
Commercial	$	11,532	$	(1,025)	$	20	$	12	$	10,499
Leases		2,690		(193)		-		95		2,592
Commercial real estate – investor		20,031		4,726		6,774		20		18,003
Commercial real estate – owner occupied		12,562		(154)		35		12		12,385
Construction		1,179		(39)		-		100		1,240
Residential real estate – investor		743		(55)		-		3		691
Residential real estate – owner occupied		1,868		(36)		-		25		1,857
Multifamily		2,737		(165)		-		-		2,572
HELOC		1,694		(77)		-		35		1,652
Other		278		30		107		37		238
Total	$	55,314	$	3,012	$	6,936	$	339	$	51,729

¹ Amount does not include the provision for unfunded commitment liability.



			Provision for
Allowance for credit losses	Beginning		(Release of)							Ending
Nine months ended September 30, 2023	Balance		Credit Losses ¹		Charge-offs		Recoveries			Balance
Commercial	$	11,968	$	(1,287)	$	427	$	245	$	10,499
Leases		2,865		498		882		111		2,592
Commercial real estate – investor		10,674		14,117		6,845		57		18,003
Commercial real estate – owner occupied		15,001		(2,397)		236		17		12,385
Construction		1,546		(406)		-		100		1,240
Residential real estate – investor		768		(104)		-		27		691
Residential real estate – owner occupied		2,046		(260)		-		71		1,857
Multifamily		2,453		119		-		-		2,572
HELOC		1,806		(242)		-		88		1,652
Other		353		53		301		133		238
Total	$	49,480	$	10,091	$	8,691	$	849	$	51,729

¹ Amount does not include the provision for unfunded commitment liability.

At September 30, 2024, our allowance for credit losses (“ACL”) on loans totaled $44.4 million, and our ACL on unfunded commitments, included in other liabilities, totaled $2.5 million. During the first nine months of 2024, we recorded net provision for credit losses on loans of $9.5 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 September 30, 2024, and $2.7 million as of both December 31, 2023, and September 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 $50.2 million and $63.1 million of collateral dependent loans secured by real estate or business assets as of September 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 September 30, 2024, and December 31, 2023:


			Accounts								ACL
September 30, 2024	Real Estate		Receivable		Equipment		Other		Total		Allocation
Commercial	$	-	$	16,529	$	-	$	-	$	16,529	$	4,286
Leases		-		-		-		-		-		-
Commercial real estate – investor		8,531		-		-		-		8,531		2,896
Commercial real estate – owner occupied		16,422		-		-		-		16,422		-
Construction		5,766		-		-		-		5,766		758
Residential real estate – investor		413		-		-		-		413		-
Residential real estate – owner occupied		1,644		-		-		-		1,644		221
Multifamily		861		-		-		-		861		-
HELOC		-		-		-		-		-		-
Other		-		-		-		-		-		-
Total	$	33,637	$	16,529	$	-	$	-	$	50,166	$	8,161


			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		-
Other		-		-		-		-		-		-
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
September 30, 2024	Past Due		Past Due		Due		Due		Current		Total Loans		Accruing
Commercial	$	3,671	$	2,303	$	11,971	$	17,945	$	796,723	$	814,668	$	-
Leases		356		481		586		1,423		456,894		458,317		-
Commercial real estate – investor		492		-		-		492		1,044,568		1,045,060		-
Commercial real estate – owner occupied		9,728		13,393		12,416		35,537		682,728		718,265		-
Construction		-		-		5,766		5,766		200,692		206,458		-
Residential real estate – investor		-		-		449		449		49,883		50,332		-
Residential real estate – owner occupied		75		-		2,029		2,104		206,123		208,227		69
Multifamily		658		206		861		1,725		373,669		375,394		-
HELOC		423		-		161		584		102,027		102,611		40
Other		5		11		-		16		11,730		11,746		-
Total	$	15,408	$	16,394	$	34,239	$	66,041	$	3,925,037	$	3,991,078	$	109


													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 September 30, 2024, and December 31, 2023:


Nonaccrual loan detail	September 30, 2024		With no ACL		December 31, 2023		With no ACL
Commercial	$	14,820	$	1,012	$	870	$	870
Leases		746		746		639		318
Commercial real estate – investor		8,531		1,645		16,572		8,926
Commercial real estate – owner occupied		17,032		17,032		34,946		8,429
Construction		5,765		-		7,162		7,162
Residential real estate – investor		1,180		1,180		1,331		1,331
Residential real estate – owner occupied		2,410		1,777		3,078		3,078
Multifamily		1,196		1,196		1,775		1,775
HELOC		491		491		1,210		1,210
Other		-		-		-		-
Total	$	52,171	$	25,079	$	67,583	$	33,099

The Company recognized $395,000 and $398,000 of interest on nonaccrual loans during the three months and nine months ended September 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 September 30, 2024, were as follows:


	2024		2023		2022		2021		2020		Prior		Revolving Loans		Revolving Loans Converted To Term Loans		Total
Commercial
Pass	$	200,043	$	230,428	$	81,173	$	23,250	$	5,838	$	7,264	$	218,666	$	-	$	766,662
Special Mention		3,164		1,942		792		204		-		-		6,861		-		12,963
Substandard		-		16		5,001		2,188		-		-		27,838		-		35,043
Total commercial		203,207		232,386		86,966		25,642		5,838		7,264		253,365		-		814,668

Leases
Pass		167,380		170,456	$	78,032		28,810		8,327		3,092		-		-		456,097
Special Mention		-		670		618		181		-		5		-		-		1,474
Substandard		-		306		261		179		-		-		-		-		746
Total leases		167,380		171,432		78,911		29,170		8,327		3,097		-		-		458,317

Commercial real estate – investor
Pass		162,086		185,368		314,843		183,750		91,782		75,277		6,140		-		1,019,246
Special Mention		-		-		-		4,162		-		-		-		-		4,162
Substandard		-		1,645		-		-		-		20,007		-		-		21,652
Total commercial real estate – investor		162,086		187,013		314,843		187,912		91,782		95,284		6,140		-		1,045,060

Commercial real estate – owner occupied
Pass		39,847		124,241		148,449		137,974		81,262		106,093		14,317		-		652,183
Special Mention		-		1,217		8,359		8,972		3,695		1,901		118		-		24,262
Substandard		211		-		1,168		10,670		13,258		16,513		-		-		41,820
Total commercial real estate – owner occupied		40,058		125,458		157,976		157,616		98,215		124,507		14,435		-		718,265

Construction
Pass		30,840		41,991		77,314		27,538		87		1,527		-		-		179,297
Special Mention		-		-		21,396		-		-		-		-		-		21,396
Substandard		-		-		5,765		-		-		-		-		-		5,765
Total construction		30,840		41,991		104,475		27,538		87		1,527		-		-		206,458

Residential real estate – investor
Pass		4,047		3,871		13,914		7,764		5,767		11,596		1,650		-		48,609
Special Mention		-		-		-		543		-		-		-		-		543
Substandard		-		-		383		-		-		797		-		-		1,180
Total residential real estate – investor		4,047		3,871		14,297		8,307		5,767		12,393		1,650		-		50,332

Residential real estate – owner occupied
Pass		8,235		30,383		36,381		33,720		23,492		72,642		762		-		205,615
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		156		101		2,355		-		-		2,612
Total residential real estate – owner occupied		8,235		30,383		36,381		33,876		23,593		74,997		762		-		208,227

Multifamily
Pass		31,468		68,022		70,488		105,789		39,258		46,497		606		-		362,128
Special Mention		-		-		-		9,997		-		-		-		-		9,997
Substandard		1,204		-		990		869		206		-		-		-		3,269
Total multifamily		32,672		68,022		71,478		116,655		39,464		46,497		606		-		375,394

HELOC
Pass		2,235		2,581		2,236		409		1,417		3,858		89,139		-		101,875
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		40		219		477		-		736
Total HELOC		2,235		2,581		2,236		409		1,457		4,077		89,616		-		102,611

Other
Pass		2,714		1,058		1,262		707		86		47		5,872		-		11,746
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-		-
Total other		2,714		1,058		1,262		707		86		47		5,872		-		11,746

Total loans
Pass		648,895		858,399		824,092		549,711		257,316		327,893		337,152		-		3,803,458
Special Mention		3,164		3,829		31,165		24,059		3,695		1,906		6,979		-		74,797
Substandard		1,415		1,967		13,568		14,062		13,605		39,891		28,315		-		112,823
Total loans	$	653,474	$	864,195	$	868,825	$	587,832	$	274,616	$	369,690	$	372,446	$	-	$	3,991,078

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 nine months ended September 30, 2024 and 2023,
were as follows:


Nine months ended September 30, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans		Revolving Loans Converted To Term Loans		Total
Commercial	$	31	$	-	$	-	$	-	$	-	$	20	$	-	$	-	$	51
Leases		-		-		96		53		-		-		-		-		149
Commercial real estate – investor		-		-		4,128		452		16		-		-		-		4,596
Commercial real estate – owner occupied		-				-		5,135		-		19		-		-		5,154
Other		-		-		-		-		-		214		-		-		214
Total	$	31	$	-	$	4,224	$	5,640	$	16	$	253	$	-	$	-	$	10,164


Nine months ended September 30, 2023	2023		2022		2021		2020		2019		Prior		Revolving Loans		Revolving Loans Converted To Term Loans		Total
Commercial	$	-	$	-	$	17	$	364	$	-	$	46	$	-	$	-	$	427
Leases		-		870		-		-		12		-		-		-		882
Commercial real estate – investor		-		4,121		71		2,653		-		-		-		-		6,845
Commercial real estate – owner occupied		-		22		178		4		-		32		-		-		236
Other		-		3		26		7		-		265		-		-		301
Total	$	-	$	5,016	$	292	$	3,028	$	12	$	343	$	-	$	-	$	8,691

The Company had $630,000 and $170,000 in residential real estate loans in the process of foreclosure as of September 30, 2024, and December 31, 2023, respectively.

There were thirteen loans modified during the nine-month period ending September 30, 2024, totaling $41.2 million in aggregate, which were experiencing financial difficulty. There were fifteen loans modified during the nine-month period ending September 30, 2023, totaling $43.0 million in aggregate, which were experiencing financial difficulty. There were no modified loans experiencing financial difficulty in payment default as of September 30, 2024, and September 30, 2023.

The following tables present the amortized costs basis of loans at September 30, 2024, and September 30, 2023, that were both experiencing financial difficulty and modified during the three-months and nine-months ended September 30, 2024, and September 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.


Three months ended September 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	$	-	$	3,794	$	-	$	-	$	3,794	0.5%
Commercial real estate – investor		12,549		-		-		6,886		19,435	1.9%
Commercial real estate – owner occupied		12,571		-		-		-		12,571	1.8%
Residential real estate – owner occupied		-		-		-		-		-	0.0%
Multifamily		-		1,204		-		-		1,204	0.3%
HELOC		-		-		-		-		-	0.0%
Total	$	25,120	$	4,998	$	-	$	6,886	$	37,004	0.9%

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


Nine months ended September 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	$	3,794	$	-	$	-	$	4,041	0.5%
Commercial real estate – investor		12,549		-		-		6,886		19,435	1.9%
Commercial real estate – owner occupied		12,571		-		3,258		663		16,492	2.3%
Residential real estate – investor		-		-		-		-		-	0.0%
Multifamily		-		1,204		-		-		1,204	0.3%
HELOC		-		-		-		-		-	0.0%
Total	$	25,367	$	4,998	$	3,258	$	7,549	$	41,172	1.0%

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


Three months ended September 30, 2023	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	$	864	$	-	$	-	$	-	$	864	0.1%
Commercial real estate – investor		-		-		-		8,823		8,823	0.8%
Commercial real estate – owner occupied		16,218		-		-		-		16,218	2.0%
Residential real estate – owner occupied		437		-		-		-		437	0.2%
Multifamily		254		-		-		-		254	0.1%
HELOC		-		-		-		-		-	0.0%
Total	$	17,773	$	-	$	-	$	8,823	$	26,596	0.7%

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


Nine months ended September 30, 2023	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	$	1,713	$	-	$	979	$	-	$	2,692	0.3%
Commercial real estate – investor		12,755		-		-		10,608		23,363	2.2%
Commercial real estate – owner occupied		16,218		-		-		-		16,218	2.0%
Residential real estate – owner occupied		437		-		-		-		437	0.0%
Multifamily		254		-		-		-		254	0.1%
HELOC		39		-		-		-		39	0.0%
Total	$	31,416	$	-	$	979	$	10,608	$	43,003	1.1%

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 in the last twelve months as of September 30, 2024, and September 30, 2023.


September 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	$	-	$	-	$	-	$	-	$	5,536	$	5,536
Commercial real estate – investor		-		-		-		-		19,435		19,435
Commercial real estate – owner occupied		-		12,505		-		12,505		3,987		16,492
Residential real estate – owner occupied		-		-		-		-		111		111
Multifamily		-		-		-		-		1,204		1,204
HELOC		-		-		-		-		87		87
Total	$	-	$	12,505	$	-	$	12,505	$	30,360	$	42,865


September 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	$	-	$	-	$	979	$	979	$	1,713	$	2,692
Commercial real estate – investor		-		-		-		-		23,363		23,363
Commercial real estate – owner occupied		-		-		-		-		16,218		16,218
Residential real estate – owner occupied		-		-		-		-		437		437
Multifamily		-		-		-		-		254		254
HELOC		-		-		-		-		39		39
Total	$	-	$	-	$	979	$	979	$	42,024	$	43,003

The following tables summarize the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the three-months and nine-months ended September 30, 2024, and September 30, 2023. The Company had four loans that had a payment modification as of September 30, 2024. One had an increase of monthly payment until maturity, one had a reduction of monthly payment until maturity, and two with interest-only payments during forbearance; the financial impact of these modifications is immaterial. As of September 30, 2023, there were two loans that had a payment modification, one to a single payment at maturity and the other to interest-only until maturity.


Three months ended September 30, 2024	Weighted-Average Term Extension (In Months)		Weighted-Average Interest Rate Change			Weighted-Average Delay of Payment (In Months)
Commercial		7.00		0.50	%		-
Commercial real estate – investor		6.00		-			-
Commercial real estate – owner occupied		12.46		-			-
Residential real estate – owner occupied		-		-			-
Multifamily		60.00		2.75			-
HELOC		-		-			-
Total		10.05		1.04	%		-


Nine months ended September 30, 2024	Weighted-Average Term Extension (In Months)		Weighted-Average Interest Rate Change			Weighted-Average Delay of Payment (In Months)
Commercial		7.06		0.50	%		-
Commercial real estate – investor		6.00		-			-
Commercial real estate – owner occupied		12.71		0.15			-
Residential real estate – owner occupied		-		-			-
Multifamily		60.00		2.75			-
HELOC		-		-			-
Total		10.37		0.69	%		-


Three months ended September 30, 2023	Weighted-Average Term Extension (In Months)		Weighted-Average Interest Rate Change			Weighted-Average Delay of Payment (In Months)
Commercial		10.57		-	%		-
Commercial real estate – investor		7.00		-			-
Commercial real estate – owner occupied		14.00		-			-
Residential real estate – owner occupied		2.00		-			-
Multifamily		16.00		-			-
HELOC		-		-			-
Total		11.39		-	%		-


Nine months ended September 30, 2023	Weighted-Average Term Extension (In Months)		Weighted-Average Interest Rate Change			Weighted-Average Delay of Payment (In Months)
Commercial		6.74		5.00	%		-
Commercial real estate – investor		9.81		-			7.17
Commercial real estate – owner occupied		14.00		-			-
Residential real estate – owner occupied		2.00		-			-
Multifamily		16.00		-			-
HELOC		24.00		-			-
Total		11.17		5.00	%		7.17