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Loans and Allowance for Credit Losses - Loans | 3 Months Ended
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Mar. 31, 2025
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] |
Loans and Allowance for Credit Losses - Loans | Loans and Allowance for Credit Losses - Loans Loans, net of unearned income, are summarized as follows by portfolio segment:
(In thousands) | March 31, 2025 |  | December 31, 2024
Commercial real estate |  |  |
CRE Nonowner Occupied | $ | 1,272,153 |  |  | $ | 1,251,010 |
CRE Owner Occupied | 654,305 |  |  | 624,007 |
Multifamily | 410,531 |  |  | 412,900 |
Farmland | 226,033 |  |  | 224,709 |
Total Commercial real estate | 2,563,022 |  |  | 2,512,626 |
Commercial and industrial | 720,695 |  |  | 705,392 |
Construction |  |  |
Residential Construction | 88,196 |  |  | 99,399 |
Other Construction | 321,015 |  |  | 326,171 |
Total Construction | 409,211 |  |  | 425,570 |
Residential mortgage |  |  |
1-4 Family 1st Lien | 312,162 |  |  | 313,592 |
1-4 Family Rental | 339,880 |  |  | 336,636 |
HELOC and Junior Liens | 139,380 |  |  | 140,392 |
Total Residential Mortgage | 791,422 |  |  | 790,620 |
Consumer | 6,817 |  |  | 8,862 |
Total loans | $ | 4,491,167 |  |  | $ | 4,443,070 |
Total loans are stated at the amount of unpaid principal, adjusted for net deferred fees and costs. Net deferred loan fees were $3.3 million and $3.8 million as of March 31, 2025 and December 31, 2024, respectively. Accrued interest receivable is not included in the amortized cost basis of Mid Penn's loans. Accrued interest receivable for loans totaled $23.5 million and $22.9 million as of March 31, 2025 and December 31, 2024, respectively, with no related ACL and was reported in other assets on the accompanying Consolidated Balance Sheet. Past Due and Nonaccrual Loans The performance and credit quality of the loan portfolio is also monitored by analyzing the age of the loans receivable as determined by the length of time a recorded payment is past due. The classes of the loan portfolio summarized by the past due status as of March 31, 2025 and December 31, 2024, are summarized as follows:
(In thousands) | 30-59 Days Past Due |  | 60-89 Days Past Due |  | Greater than 90 Days |  | Total Past Due |  | Current |  | Total Loans |  | Loans Receivable > 90 Days and Accruing
March 31, 2025 |  |  |  |  |  |
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |
CRE Nonowner Occupied | $ | 1,746 |  |  | $ | — |  |  | $ | 13,919 |  |  | $ | 15,665 |  |  | $ | 1,256,488 |  |  | $ | 1,272,153 |  |  | $ | — |
CRE Owner Occupied | 2,176 |  |  | — |  |  | 298 |  |  | 2,474 |  |  | 651,831 |  |  | 654,305 |  |  | — |
Multifamily | — |  |  | — |  |  | — |  |  | — |  |  | 410,531 |  |  | 410,531 |  |  | — |
Farmland | 1 |  |  | — |  |  | — |  |  | 1 |  |  | 226,032 |  |  | 226,033 |  |  | — |
Total Commercial real estate | 3,923 |  |  | — |  |  | 14,217 |  |  | 18,140 |  |  | 2,544,882 |  |  | 2,563,022 |  |  | — |
Commercial and industrial | 112 |  |  | 35 |  |  | 797 |  |  | 944 |  |  | 719,751 |  |  | 720,695 |  |  | 3 |
Construction |  |  |  |  |  |  |  |  |  |  |  |  |
Residential Construction | — |  |  | — |  |  | — |  |  | — |  |  | 88,196 |  |  | 88,196 |  |  | — |
Other Construction | — |  |  | — |  |  | — |  |  | — |  |  | 321,015 |  |  | 321,015 |  |  | — |
Total Construction | — |  |  | — |  |  | — |  |  | — |  |  | 409,211 |  |  | 409,211 |  |  | — |
Residential mortgage |  |  |  |  |  |  |  |  |  |  |  |  |
1-4 Family 1st Lien | 583 |  |  | 79 |  |  | 386 |  |  | 1,048 |  |  | 311,114 |  |  | 312,162 |  |  | — |
1-4 Family Rental | — |  |  | 4 |  |  | 125 |  |  | 129 |  |  | 339,751 |  |  | 339,880 |  |  | — |
HELOC and Junior Liens | 649 |  |  | — |  |  | 1,433 |  |  | 2,082 |  |  | 137,298 |  |  | 139,380 |  |  | — |
Total Residential Mortgage | 1,232 |  |  | 83 |  |  | 1,944 |  |  | 3,259 |  |  | 788,163 |  |  | 791,422 |  |  | — |
Consumer | — |  |  | — |  |  | — |  |  | — |  |  | 6,817 |  |  | 6,817 |  |  | — |
Total | $ | 5,267 |  |  | $ | 118 |  |  | $ | 16,958 |  |  | $ | 22,343 |  |  | $ | 4,468,824 |  |  | $ | 4,491,167 |  |  | $ | 3 |
(In thousands) | 30-59 Days Past Due |  | 60-89 Days Past Due |  | Greater than 90 Days |  | Total Past Due |  | Current |  | Total Loans |  | Loans Receivable > 90 Days and Accruing
December 31, 2024 |  |  |  |  |  |
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |
CRE Nonowner Occupied | $ | 1,281 |  |  | $ | 1,515 |  |  | $ | 11,658 |  |  | $ | 14,454 |  |  | $ | 1,236,556 |  |  | $ | 1,251,010 |  |  | $ | — |
CRE Owner Occupied | 39 |  |  | 51 |  |  | 262 |  |  | 352 |  |  | 623,655 |  |  | 624,007 |  |  | — |
Multifamily | — |  |  | — |  |  | — |  |  | — |  |  | 412,900 |  |  | 412,900 |  |  | — |
Farmland | 184 |  |  | — |  |  | — |  |  | 184 |  |  | 224,525 |  |  | 224,709 |  |  | — |
Total Commercial real estate | 1,504 |  |  | 1,566 |  |  | 11,920 |  |  | 14,990 |  |  | 2,497,636 |  |  | 2,512,626 |  |  | — |
Commercial and industrial | 74 |  |  | 3 |  |  | 794 |  |  | 871 |  |  | 704,521 |  |  | 705,392 |  |  | — |
Construction |  |  |  |  |  |  |  |  |  |  |  |  |
Residential Construction | — |  |  | — |  |  | — |  |  | — |  |  | 99,399 |  |  | 99,399 |  |  | — |
Other Construction | — |  |  | — |  |  | — |  |  | — |  |  | 326,171 |  |  | 326,171 |  |  | — |
Total Construction | — |  |  | — |  |  | — |  |  | — |  |  | 425,570 |  |  | 425,570 |  |  | — |
Residential mortgage |  |  |  |  |  |  |  |  |  |  |  |  |
1-4 Family 1st Lien | 2,853 |  |  | 220 |  |  | 516 |  |  | 3,589 |  |  | 310,003 |  |  | 313,592 |  |  | — |
1-4 Family Rental | 374 |  |  | 7 |  |  | 137 |  |  | 518 |  |  | 336,118 |  |  | 336,636 |  |  | — |
HELOC and Junior Liens | 724 |  |  | 209 |  |  | 2,157 |  |  | 3,090 |  |  | 137,302 |  |  | 140,392 |  |  | — |
Total Residential Mortgage | 3,951 |  |  | 436 |  |  | 2,810 |  |  | 7,197 |  |  | 783,423 |  |  | 790,620 |  |  | — |
Consumer | 20 |  |  | — |  |  | — |  |  | 20 |  |  | 8,842 |  |  | 8,862 |  |  | — |
Total | $ | 5,549 |  |  | $ | 2,005 |  |  | $ | 15,524 |  |  | $ | 23,078 |  |  | $ | 4,419,992 |  |  | $ | 4,443,070 |  |  | $ | — |
Loans are placed on nonaccrual status when management determines that the full repayment of principal and collection of interest according to contractual terms is no longer likely, generally when the loan becomes 90 days or more past due. Nonaccrual loans by loan portfolio class, including loans acquired with credit deterioration, as of March 31, 2025 and December 31, 2024 are summarized as follows:
|  | March 31, 2025 |  | December 31, 2024
(In thousands) |  | With a Related Allowance |  | Without a Related Allowance |  | Total |  | With a Related Allowance |  | Without a Related Allowance |  | Total
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |
CRE Nonowner Occupied |  | 3,677 |  |  | 10,242 |  |  | 13,919 |  |  | 2,622 |  |  | 11,153 |  |  | 13,775 |
CRE Owner Occupied |  | — |  |  | 2,032 |  |  | 2,032 |  |  | — |  |  | 546 |  |  | 546 |
Multifamily |  | — |  |  | 147 |  |  | 147 |  |  | — |  |  | 154 |  |  | 154 |
Total Commercial real estate |  | 3,677 |  |  | 12,421 |  |  | 16,098 |  |  | 2,622 |  |  | 11,853 |  |  | 14,475 |
Commercial and industrial |  | 4,989 |  |  | 611 |  |  | 5,600 |  |  | 758 |  |  | 3,894 |  |  | 4,652 |
Construction |  |  |  |  |  |  |  |  |  |  |  |
Residential Construction |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Other Construction |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total Construction |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Residential mortgage |  |  |  |  |  |  |  |  |  |  |  |
1-4 Family 1st Lien |  | — |  |  | 654 |  |  | 654 |  |  | — |  |  | 1,028 |  |  | 1,028 |
1-4 Family Rental |  | — |  |  | 160 |  |  | 160 |  |  | — |  |  | 176 |  |  | 176 |
HELOC and Junior Liens |  | — |  |  | 1,533 |  |  | 1,533 |  |  | — |  |  | 2,279 |  |  | 2,279 |
Total Residential Mortgage |  | $ | — |  |  | $ | 2,347 |  |  | $ | 2,347 |  |  | $ | — |  |  | $ | 3,483 |  |  | $ | 3,483 |
Consumer |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total loans |  | $ | 8,666 |  |  | $ | 15,379 |  |  | $ | 24,045 |  |  | $ | 3,380 |  |  | $ | 19,230 |  |  | $ | 22,610 |
The amount of interest income recognized on nonaccrual loans was approximately $127 thousand and $159 thousand during the three months ended March 31, 2025 and 2024, respectively. Credit Quality Indicators Mid Penn 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. On a minimum of a quarterly basis, Mid Penn analyzes loans individually to classify the loans according to their credit risk. The following table presents risk ratings by loan portfolio segment and origination year, which is the year of origination or renewal. PASS - This type of classification consists of 6 subcategories: Nominal Risk / Pass - This loan classification is a credit extension of the highest quality. Moderate Risk / Pass - This type of classification has strong financial ratios, substantial debt capacity, and low leverage with a very favorable comparison to industry peers or better than average improving trends are necessary to be in this classification. Good Acceptable Risk / Pass - The Borrower in this rating classification is a reasonable credit risk having financial ratios on par with its peers and demonstrates slightly improving trends over time; they list good quality assets and fairly low leverage plus ample debt capacity. Average Acceptable Risk / Pass - This type of classification has financial ratios and assets are of above average quality, the leverage is worse than average compared to industry standards; the Borrower should have a good repayment history and possess consistent earnings with some growth. Marginally Acceptable Risk / Pass - This type of classification has financial ratios consistent with industry averages, assets of average quality with ascertainable values, acceptable leverage, moderate capital assets and an acceptable reliance on trade debt; the Borrower demonstrates marginally adequate earnings, cash flow and debt service plus positive trends. Weak/Monitor Risk (Watch list) / Pass - This type of classification has financial ratios that are slightly below standard industry averages and assets are below average quality with unstable values; fixed assets could be near or at the end of their useful life and liabilities may not match the asset structure. SPECIAL MENTION - These credits have developing weaknesses deserving extra attention from the lender and lending management. They are currently protected, but potentially weak. The weakness may be cash flow, leverage, liquidity, management, industry or other factors which may, if not checked or corrected, weaken the asset or inadequately protect the Bank’s credit position at some future date. SUBSTANDARD - These credit extensions also have well-defined weaknesses, which are inadequately protected by the current worth and debt service capacity of the Borrower, or the collateral pledged, if any. The repayment of principal and interest as originally intended can be jeopardized by defined weaknesses related to adverse financial, managerial, economic, market or political conditions. DOUBTFUL - These credits have definite weaknesses inherent in Substandard loans with added characteristics that are severe enough to make further collection in full highly questionable and improbable based on the current trends. LOSS. These loans are considered uncollectible and no longer a viable asset of the Bank. They lack an identifiable source of repayment based on an inability to generate sufficient cash flow to service the debt. All trends are negative and the damage to the financial condition of the Borrower cannot be reversed now or in the near future. The following table presents risk ratings by loan portfolio segment and origination year, which is the year of origination or renewal.
| March 31, 2025
| Term Loans Amortized Cost Basis by Origination Year |  | Revolving Loans Amortized Cost Basis |  |
(In thousands) | 2025 |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | Prior |  |  | Total
CRE Nonowner Occupied |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 20,673 |  |  | $ | 85,769 |  |  | $ | 197,443 |  |  | $ | 339,713 |  |  | $ | 150,865 |  |  | $ | 440,272 |  |  | $ | 11,179 |  |  | $ | 1,245,914 |
Special mention | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 4,418 |  |  | — |  |  | 4,418 |
Substandard or lower | — |  |  | — |  |  | 1,540 |  |  | 1,280 |  |  | — |  |  | 19,001 |  |  | — |  |  | 21,821 |
Total CRE Nonowner Occupied | 20,673 |  |  | 85,769 |  |  | 198,983 |  |  | 340,993 |  |  | 150,865 |  |  | 463,691 |  |  | 11,179 |  |  | 1,272,153 |
Gross charge offs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Current period recoveries | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | — |  |  | 1 |
Net charge offs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | — |  |  | 1 |
CRE Owner Occupied |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 33,854 |  |  | 61,419 |  |  | 104,424 |  |  | 104,367 |  |  | 64,246 |  |  | 263,242 |  |  | 14,350 |  |  | 645,902 |
Special mention | — |  |  | — |  |  | — |  |  | 4,943 |  |  | 174 |  |  | 1,001 |  |  | — |  |  | 6,118 |
Substandard or lower | — |  |  | — |  |  | — |  |  | — |  |  | 235 |  |  | 2,050 |  |  | — |  |  | 2,285 |
Total CRE Owner Occupied | 33,854 |  |  | 61,419 |  |  | 104,424 |  |  | 109,310 |  |  | 64,655 |  |  | 266,293 |  |  | 14,350 |  |  | 654,305 |
Gross charge offs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Current period recoveries | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Net recoveries | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Multifamily |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 2,943 |  |  | 4,854 |  |  | 66,143 |  |  | 118,458 |  |  | 100,824 |  |  | 113,606 |  |  | 3,505 |  |  | 410,333 |
Special mention | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 51 |  |  | — |  |  | 51 |
Substandard or lower | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 147 |  |  | — |  |  | 147 |
Total Multifamily | 2,943 |  |  | 4,854 |  |  | 66,143 |  |  | 118,458 |  |  | 100,824 |  |  | 113,804 |  |  | 3,505 |  |  | 410,531 |
Gross charge offs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Current period recoveries | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Net charge offs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Farmland |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 7,125 |  |  | 28,095 |  |  | 29,605 |  |  | 54,696 |  |  | 40,912 |  |  | 48,779 |  |  | 13,224 |  |  | 222,436 |
Special mention | — |  |  | — |  |  | 127 |  |  | — |  |  | 1,153 |  |  | 2,129 |  |  | 188 |  |  | 3,597 |
Substandard or lower | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total Farmland | 7,125 |  |  | 28,095 |  |  | 29,732 |  |  | 54,696 |  |  | 42,065 |  |  | 50,908 |  |  | 13,412 |  |  | 226,033 |
Gross charge offs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Current period recoveries | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Net charge offs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Commercial and industrial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 53,535 |  |  | 111,556 |  |  | 100,212 |  |  | 71,545 |  |  | 52,191 |  |  | 103,350 |  |  | 217,835 |  |  | 710,224 |
Special mention | — |  |  | 120 |  |  | 56 |  |  | 213 |  |  | 62 |  |  | 2,451 |  |  | 4,585 |  |  | 7,487 |
Substandard or lower | — |  |  | — |  |  | — |  |  | — |  |  | 785 |  |  | 1,599 |  |  | 600 |  |  | 2,984 |
Total commercial and industrial | 53,535 |  |  | 111,676 |  |  | 100,268 |  |  | 71,758 |  |  | 53,038 |  |  | 107,400 |  |  | 223,020 |  |  | 720,695 |
Gross charge offs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Current period recoveries | — |  |  | — |  |  | 1 |  |  | — |  |  | — |  |  | 5 |  |  | — |  |  | 6 |
Net charge offs | — |  |  | — |  |  | 1 |  |  | — |  |  | — |  |  | 5 |  |  | — |  |  | 6 |
Residential Construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 1,923 |  |  | 38,527 |  |  | 36,783 |  |  | 2,952 |  |  | — |  |  | — |  |  | 8,011 |  |  | 88,196 |
Special mention | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Substandard or lower | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total Residential Construction | 1,923 |  |  | 38,527 |  |  | 36,783 |  |  | 2,952 |  |  | — |  |  | — |  |  | 8,011 |  |  | 88,196 |
Gross charge offs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Current period recoveries | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Net recoveries | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Other Construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 20,573 |  |  | 69,098 |  |  | 74,600 |  |  | 97,132 |  |  | 10,927 |  |  | 21,577 |  |  | 27,108 |  |  | 321,015 |
Special mention | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Substandard or lower | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total Other Construction | 20,573 |  |  | 69,098 |  |  | 74,600 |  |  | 97,132 |  |  | 10,927 |  |  | 21,577 |  |  | 27,108 |  |  | 321,015 |
Gross charge offs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Current period recoveries | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Net recoveries | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
1-4 Family 1st Lien |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing | 15,389 |  |  | 18,710 |  |  | 59,014 |  |  | 44,951 |  |  | 34,232 |  |  | 135,632 |  |  | 2,354 |  |  | 310,282 |
Non-performing | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,880 |  |  | — |  |  | 1,880 |
Total 1-4 Family 1st Lien | 15,389 |  |  | 18,710 |  |  | 59,014 |  |  | 44,951 |  |  | 34,232 |  |  | 137,512 |  |  | 2,354 |  |  | 312,162 |
Gross charge offs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Current period recoveries | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 2 |  |  | — |  |  | 2 |
Net recoveries | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 2 |  |  | — |  |  | 2 |
1-4 Family Rental |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing | 9,308 |  |  | 24,953 |  |  | 49,924 |  |  | 93,316 |  |  | 57,899 |  |  | 101,725 |  |  | 1,896 |  |  | 339,021 |
Non-performing | — |  |  | — |  |  | 147 |  |  | — |  |  | — |  |  | 712 |  |  | — |  |  | 859 |
Total 1-4 Family Rental | 9,308 |  |  | 24,953 |  |  | 50,071 |  |  | 93,316 |  |  | 57,899 |  |  | 102,437 |  |  | 1,896 |  |  | 339,880 |
Gross charge offs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Current period recoveries | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Net recoveries | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
HELOC and Junior Liens |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing | 1,230 |  |  | 5,023 |  |  | 15,743 |  |  | 9,347 |  |  | 4,810 |  |  | 12,693 |  |  | 87,297 |  |  | 136,143 |
Non-performing | — |  |  | 1,000 |  |  | 101 |  |  | — |  |  | — |  |  | 1,135 |  |  | 1,001 |  |  | 3,237 |
Total HELOC and Junior Liens | 1,230 |  |  | 6,023 |  |  | 15,844 |  |  | 9,347 |  |  | 4,810 |  |  | 13,828 |  |  | 88,298 |  |  | 139,380 |
Gross charge offs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Current period recoveries | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Net charge offs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing | 1,379 |  |  | 1,566 |  |  | 915 |  |  | 316 |  |  | 365 |  |  | 265 |  |  | 2,011 |  |  | 6,817 |
Non-performing | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total consumer | 1,379 |  |  | 1,566 |  |  | 915 |  |  | 316 |  |  | 365 |  |  | 265 |  |  | 2,011 |  |  | 6,817 |
Gross charge offs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (15) |  |  | — |  |  | (15) |
Current period recoveries | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 9 |  |  | — |  |  | 9 |
Net charge offs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (6) |  |  | — |  |  | (6) |
Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 140,626 |  |  | $ | 399,318 |  |  | $ | 609,210 |  |  | $ | 788,863 |  |  | $ | 419,965 |  |  | $ | 990,826 |  |  | $ | 295,212 |  |  | $ | 3,644,020 |
Special mention | — |  |  | 120 |  |  | 183 |  |  | 5,156 |  |  | 1,389 |  |  | 10,050 |  |  | 4,773 |  |  | 21,671 |
Substandard or lower | — |  |  | — |  |  | 1,540 |  |  | 1,280 |  |  | 1,020 |  |  | 22,797 |  |  | 600 |  |  | 27,237 |
Performing | 27,306 |  |  | 50,252 |  |  | 125,596 |  |  | 147,930 |  |  | 97,306 |  |  | 250,315 |  |  | 93,558 |  |  | 792,263 |
Nonperforming | — |  |  | 1,000 |  |  | 248 |  |  | — |  |  | — |  |  | 3,727 |  |  | 1,001 |  |  | 5,976 |
Total | $ | 167,932 |  |  | $ | 450,690 |  |  | $ | 736,777 |  |  | $ | 943,229 |  |  | $ | 519,680 |  |  | $ | 1,277,715 |  |  | $ | 395,144 |  |  | $ | 4,491,167 |
| December 31, 2024
| Term Loans Amortized Cost Basis by Origination Year |  | Revolving Loans Amortized Cost Basis |  |
(In thousands) | 2024 |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | Prior |  |  | Total
CRE Nonowner Occupied |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 85,501 |  |  | $ | 176,018 |  |  | $ | 343,072 |  |  | $ | 152,157 |  |  | $ | 130,650 |  |  | $ | 325,478 |  |  | $ | 11,732 |  |  | $ | 1,224,608 |
Special mention | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3,105 |  |  | — |  |  | 3,105 |
Substandard or lower | — |  |  | 1,515 |  |  | 1,260 |  |  | — |  |  | 3,281 |  |  | 17,241 |  |  | — |  |  | 23,297 |
Total CRE Nonowner Occupied | 85,501 |  |  | 177,533 |  |  | 344,332 |  |  | 152,157 |  |  | 133,931 |  |  | 345,824 |  |  | 11,732 |  |  | 1,251,010 |
Gross charge offs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Current period recoveries | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 2 |  |  | — |  |  | 2 |
Net recoveries | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 2 |  |  | — |  |  | 2 |
CRE Owner Occupied |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 52,922 |  |  | 99,065 |  |  | 106,876 |  |  | 66,160 |  |  | 77,774 |  |  | 199,725 |  |  | 11,630 |  |  | 614,152 |
Special mention | — |  |  | 222 |  |  | 4,991 |  |  | 227 |  |  | — |  |  | 2,133 |  |  | — |  |  | 7,573 |
Substandard or lower | — |  |  | — |  |  | — |  |  | 194 |  |  | — |  |  | 2,088 |  |  | — |  |  | 2,282 |
Total CRE Owner Occupied | 52,922 |  |  | 99,287 |  |  | 111,867 |  |  | 66,581 |  |  | 77,774 |  |  | 203,946 |  |  | 11,630 |  |  | 624,007 |
Gross charge offs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Current period recoveries | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 4 |  |  | — |  |  | 4 |
Net recoveries | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 4 |  |  | — |  |  | 4 |
Multifamily |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 4,843 |  |  | 66,119 |  |  | 118,568 |  |  | 101,871 |  |  | 40,450 |  |  | 78,070 |  |  | 2,771 |  |  | 412,692 |
Special mention | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 54 |  |  | — |  |  | 54 |
Substandard or lower | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 154 |  |  | — |  |  | 154 |
Total Multifamily | 4,843 |  |  | 66,119 |  |  | 118,568 |  |  | 101,871 |  |  | 40,450 |  |  | 78,278 |  |  | 2,771 |  |  | 412,900 |
Gross charge offs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Current period recoveries | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Net charge offs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Farmland |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 27,449 |  |  | 31,259 |  |  | 56,178 |  |  | 42,693 |  |  | 25,119 |  |  | 24,729 |  |  | 14,801 |  |  | 222,228 |
Special mention | — |  |  | 128 |  |  | — |  |  | — |  |  | — |  |  | 2,163 |  |  | 190 |  |  | 2,481 |
Substandard or lower | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total Farmland | 27,449 |  |  | 31,387 |  |  | 56,178 |  |  | 42,693 |  |  | 25,119 |  |  | 26,892 |  |  | 14,991 |  |  | 224,709 |
Gross charge offs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Current period recoveries | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Net charge offs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Commercial and industrial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 114,175 |  |  | 106,657 |  |  | 78,702 |  |  | 54,312 |  |  | 21,532 |  |  | 92,723 |  |  | 222,525 |  |  | 690,626 |
Special mention | — |  |  | 62 |  |  | 503 |  |  | 31 |  |  | — |  |  | 3,534 |  |  | 4,498 |  |  | 8,628 |
Substandard or lower | — |  |  | — |  |  | — |  |  | 892 |  |  | 1,168 |  |  | 1,632 |  |  | 2,446 |  |  | 6,138 |
Total commercial and industrial | 114,175 |  |  | 106,719 |  |  | 79,205 |  |  | 55,235 |  |  | 22,700 |  |  | 97,889 |  |  | 229,469 |  |  | 705,392 |
Gross charge offs | — |  |  | (201) |  |  | — |  |  | — |  |  | (206) |  |  | (412) |  |  | — |  |  | (819) |
Current period recoveries | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | — |  |  | 1 |
Net charge offs | — |  |  | (201) |  |  | — |  |  | — |  |  | (206) |  |  | (411) |  |  | — |  |  | (818) |
Residential construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 34,275 |  |  | 37,222 |  |  | 15,559 |  |  | — |  |  | — |  |  | 2,007 |  |  | 10,336 |  |  | 99,399 |
Special mention | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Substandard or lower | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total Residential construction | 34,275 |  |  | 37,222 |  |  | 15,559 |  |  | — |  |  | — |  |  | 2,007 |  |  | 10,336 |  |  | 99,399 |
Gross charge offs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Current period recoveries | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Net recoveries | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Other construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 66,711 |  |  | 94,619 |  |  | 104,439 |  |  | 11,664 |  |  | 10,983 |  |  | 11,928 |  |  | 25,827 |  |  | 326,171 |
Special mention | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Substandard or lower | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total Other construction | 66,711 |  |  | 94,619 |  |  | 104,439 |  |  | 11,664 |  |  | 10,983 |  |  | 11,928 |  |  | 25,827 |  |  | 326,171 |
Gross charge offs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Current period recoveries | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Net recoveries | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
1-4 Family 1st Lien |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing | 27,580 |  |  | 59,762 |  |  | 45,946 |  |  | 34,743 |  |  | 42,727 |  |  | 98,891 |  |  | 2,915 |  |  | 312,564 |
Non-performing | — |  |  | — |  |  | — |  |  | — |  |  | 211 |  |  | 817 |  |  | — |  |  | 1,028 |
Total 1-4 Family 1st Lien | 27,580 |  |  | 59,762 |  |  | 45,946 |  |  | 34,743 |  |  | 42,938 |  |  | 99,708 |  |  | 2,915 |  |  | 313,592 |
Gross charge offs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (7) |  |  | — |  |  | (7) |
Current period recoveries | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 16 |  |  | — |  |  | 16 |
Net recoveries | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 9 |  |  | — |  |  | 9 |
1-4 Family Rental |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing | 28,735 |  |  | 51,488 |  |  | 88,594 |  |  | 59,397 |  |  | 35,222 |  |  | 69,890 |  |  | 2,009 |  |  | 335,335 |
Non-performing | — |  |  | 147 |  |  | — |  |  | — |  |  | 595 |  |  | 559 |  |  | — |  |  | 1,301 |
Total 1-4 Family Rental | 28,735 |  |  | 51,635 |  |  | 88,594 |  |  | 59,397 |  |  | 35,817 |  |  | 70,449 |  |  | 2,009 |  |  | 336,636 |
Gross charge offs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (2) |  |  | — |  |  | (2) |
Current period recoveries | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 22 |  |  | — |  |  | 22 |
Net recoveries | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 20 |  |  | — |  |  | 20 |
HELOC and Junior Liens |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing | 6,096 |  |  | 16,125 |  |  | 9,856 |  |  | 4,845 |  |  | 2,182 |  |  | 10,887 |  |  | 88,122 |  |  | 138,113 |
Non-performing | — |  |  | 21 |  |  | — |  |  | — |  |  | — |  |  | 1,257 |  |  | 1,001 |  |  | 2,279 |
Total HELOC and Junior Liens | 6,096 |  |  | 16,146 |  |  | 9,856 |  |  | 4,845 |  |  | 2,182 |  |  | 12,144 |  |  | 89,123 |  |  | 140,392 |
Gross charge offs | — |  |  | — |  |  | (21) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (21) |
Current period recoveries | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Net charge offs | — |  |  | — |  |  | (21) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (21) |
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing | 4,214 |  |  | 972 |  |  | 354 |  |  | 394 |  |  | 107 |  |  | 234 |  |  | 2,587 |  |  | 8,862 |
Non-performing | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total consumer | 4,214 |  |  | 972 |  |  | 354 |  |  | 394 |  |  | 107 |  |  | 234 |  |  | 2,587 |  |  | 8,862 |
Gross charge offs | — |  |  | — |  |  | (2) |  |  | — |  |  | — |  |  | (50) |  |  | — |  |  | (52) |
Current period recoveries | — |  |  | — |  |  | 1 |  |  | — |  |  | — |  |  | 38 |  |  | — |  |  | 39 |
Net charge offs | — |  |  | — |  |  | (1) |  |  | — |  |  | — |  |  | (12) |  |  | — |  |  | (13) |
Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 385,876 |  |  | $ | 610,959 |  |  | $ | 823,394 |  |  | $ | 428,857 |  |  | $ | 306,508 |  |  | $ | 734,660 |  |  | $ | 299,622 |  |  | $ | 3,589,876 |
Special mention | — |  |  | 412 |  |  | 5,494 |  |  | 258 |  |  | — |  |  | 10,989 |  |  | 4,688 |  |  | 21,841 |
Substandard or lower | — |  |  | 1,515 |  |  | 1,260 |  |  | 1,086 |  |  | 4,449 |  |  | 21,115 |  |  | 2,446 |  |  | 31,871 |
Performing | 66,625 |  |  | 128,347 |  |  | 144,750 |  |  | 99,379 |  |  | 80,238 |  |  | 179,902 |  |  | 95,633 |  |  | 794,874 |
Nonperforming | — |  |  | 168 |  |  | — |  |  | — |  |  | 806 |  |  | 2,633 |  |  | 1,001 |  |  | 4,608 |
Total | $ | 452,501 |  |  | $ | 741,401 |  |  | $ | 974,898 |  |  | $ | 529,580 |  |  | $ | 392,001 |  |  | $ | 949,299 |  |  | $ | 403,390 |  |  | $ | 4,443,070 |
Mid Penn had no loans classified as "doubtful" as of March 31, 2025 and December 31, 2024. There was $109 thousand and $861 thousand in loans for which formal foreclosure proceedings were in process at March 31, 2025 and December 31, 2024, respectively. Collateral-Dependent Loans A financial asset is considered to be collateral-dependent when the debtor is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. For all classes of financial assets deemed collateral-dependent, Mid Penn elected the practical expedient to estimate expected credit losses based on the collateral’s fair value less cost to sell. In most cases, Mid Penn records a partial charge-off to reduce the loan’s carrying value to the collateral’s fair value less cost to sell. Substantially all of the collateral supporting collateral-dependent financial assets consists of various types of real estate, including residential properties; commercial properties such as retail centers, office buildings, and lodging; agriculture land; and vacant land. Total collateral-dependent loans as of March 31, 2025 were $24.0 million. Allowance for Credit Losses Mid Penn’s ACL - loans methodology follows guidance within FASB ASC Subtopic 326-20. The ACL - loans is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. Credit quality within the loan portfolio is continuously monitored by management and is reflected within the ACL - loans. The ACL - loans is an estimate of expected losses inherent within Mid Penn’s existing loan portfolio. The ACL - loans is adjusted through the PCL and reduced by the charge off of loan amounts, net of recoveries. The loan loss estimation process involves procedures to appropriately consider the unique characteristics of Mid Penn’s loan portfolio segments. When computing allowance levels, credit loss assumptions are estimated using a model that categorizes loan pools based on loss history and other credit trends and risk characteristics, including current conditions and reasonable and supportable forecasts about the future. Evaluations of the portfolio and individual credits are inherently subjective, as they require estimates, assumptions and judgments as to the facts and circumstances of particular situations. Determining the appropriateness of the allowance is complex and requires judgement by management about the effect of matters that are inherently uncertain. In future periods, evaluations of the overall loan portfolio, in light of the factors and forecasts then prevailing, may result in significant changes in the ACL and credit loss expense. Mid Penn estimates the ACL using relevant available information, from internal and external sources, relating to past events, current conditions and reasonable and supportable forecasts. Mid Penn uses a third-party software application to calculate the quantitative portion of the ACL using a methodology and assumptions specific to each loan pool. The qualitative portion of the allowance is based on general economic conditions and other internal and external factors affecting Mid Penn as a whole, as well as specific loans. Factors considered include the following: lending process, concentrations of credit, and peer group divergence. The quantitative and qualitative portions of the allowance are added together to determine the total ACL, which reflects management’s expectations of future conditions based on reasonable and supportable forecasts. The methodology for estimating the amount of expected credit losses reported in the ACL has two basic components: a collective, or pooled, component for estimated expected credit losses for pools of loans that share similar risk characteristics, and an asset-specific component involving individual loans that do not share risk characteristics with other loans and the measurement of expected credit losses for such individual loans. In estimating the ACL for the collective component, loans are segregated into loan pools based on loan purpose codes and similar risk characteristics. The commercial real estate and residential mortgage loan portfolio segments include loans for both commercial and residential properties that are secured by real estate. The underwriting process for these loans includes analysis of the financial position and strength of both the borrower and, if applicable, guarantor, experience with similar projects in the past, market demand and prospects for successful completion of the proposed project within the established budget and schedule, values of underlying collateral, availability of permanent financing, maximum loan-to-value ratios, minimum equity requirements, acceptable amortization periods and minimum debt service coverage requirements, based on property type. The borrower’s financial strength and capacity to repay their obligations remain the primary focus of underwriting. Financial strength is evaluated based upon analytical tools that consider historical and projected cash flows and performance, in addition to analysis of the proposed project for income-producing properties. Additional support offered by guarantors is also considered when applicable. Ultimate repayment of these loans is sensitive to interest rate changes, general economic conditions, liquidity and availability of long-term financing. The commercial and industrial loan portfolio segment includes commercial loans made to many types of businesses for various purposes, such as short-term working capital loans that are usually secured by accounts receivable and inventory, equipment and fixed asset purchases that are secured by those assets, and term financing for those within Mid Penn’s geographic markets. Mid Penn’s credit underwriting process for commercial and industrial loans includes analysis of historical and projected cash flows and performance, evaluation of financial strength of both borrowers and guarantors as reflected in current and detailed financial information, and evaluation of underlying collateral to support the credit. The consumer loan portfolio segment is comprised of loans which are underwritten after evaluating a borrower’s capacity, credit and collateral. Several factors are considered when assessing a borrower’s capacity, including the borrower’s employment, income, current debt, assets and level of equity in the property. Credit is assessed using a credit report that provides credit scores and the borrower’s current and past information about their credit history. Loan-to-value and debt-to-income ratios, loan amount and lien position are also considered in assessing whether to originate a loan. These borrowers are particularly susceptible to downturns in economic trends, such as conditions that negatively affect housing prices and demand and levels of unemployment. Mid Penn utilizes a DCF method to estimate the quantitative portion of the allowance for credit losses for loan pools. The DCF is based off of historical losses, including peer data, which is correlated to national unemployment and GDP. The PD and LGD measures are used in conjunction with prepayment data as inputs into the DCF model to calculate the cash flows at the individual loan level. Contractual cash flows based on loan terms are adjusted for PD, LGD and prepayments to derive loss cash flows. These loss cash flows are discounted by the loan’s coupon rate to arrive at the discounted cash flow based quantitative loss. The prepayment studies are updated quarterly by a third-party for each applicable pool. Mid Penn determined that reasonable and supportable forecasts could be made for a twelve-month period for all of its loan pools. To the extent the lives of the loans in the portfolio extend beyond this forecast period, Mid Penn uses a reversion period of four quarters and reverts to the historical mean on a straight-line basis over the remaining life of the loans. Qualitative factors used in the ACL methodology include the following: •Lending process •Concentrations of credit •Peer Group Divergence The ACL for individual loans, such as non-accrual and PCD, that do not share risk characteristics with other loans is measured as the difference between the discounted value of expected future cash flows, based on the effective interest rate at origination, and the amortized cost basis of the loan, or the net realizable value. The ACL is the difference between the loan’s net realizable value and its amortized cost basis (net of previous charge-offs and deferred loan fees and costs), except for collateral-dependent loans. A loan is collateral dependent when the borrower is experiencing financial difficulty and repayment of the loan is expected to be provided substantially through the sale of the collateral. The expected credit loss for collateral-dependent loans is measured as the difference between the amortized cost basis of the loan and the fair value of the collateral, adjusted for the estimated cost to sell. Fair value estimates for collateral-dependent loans are derived from appraised values based on the current market value or the "as is" value of the collateral, normally from recently received and reviewed appraisals. Current appraisals are ordered on a regular basis based on the inspection date or more often if market conditions necessitate. Appraisals are obtained from state-certified appraisers and are based on certain assumptions, which may include construction or development status and the highest and best use of the property. These appraisals are reviewed by Mid Penn’s Appraisal Review Department to ensure they are acceptable, and values are adjusted down for costs associated with asset disposal. If the calculated expected credit loss is determined to be permanent or not recoverable, the amount of the expected credit loss is charged off. Mid Penn may also purchase loans or acquire loans through a business combination. At the purchase or acquisition date, loans are evaluated to determine whether there has been more than insignificant credit deterioration since origination. Loans that have experienced more than insignificant credit deterioration since origination are referred to as PCD loans. In its evaluation of whether a loan has experienced more than insignificant deterioration in credit quality since origination, Mid Penn takes into consideration loan grades, past due and nonaccrual status. Mid Penn may also consider external credit rating agency ratings for borrowers and for non-commercial loans, FICO score or band, probability of default levels, and number of times past due. At the purchase or acquisition date, the amortized cost basis of PCD loans is equal to the purchase price and an initial estimate of credit losses. The initial recognition of expected credit losses on PCD loans has no impact on net income. When the initial measurement of expected credit losses on PCD loans is calculated on a pooled loan basis, the expected credit losses are allocated to each loan within the pool. Any difference between the initial amortized cost basis and the unpaid principal balance of the loan represents a noncredit discount or premium, which is accreted (or amortized) into interest income over the life of the loan. Subsequent changes to the ACL on PCD loans are recorded through the PCL. For purchased loans that are not deemed to have experienced more than insignificant credit deterioration since origination and are therefore not deemed PCD, any discounts or premiums included in the purchase price are accreted (or amortized) over the contractual life of the individual loan. Loans are charged off against the ACL-loans, with any subsequent recoveries credited back to the ACL-loans account. Expected recoveries may not exceed the aggregate of amounts previously charged off and expected to be charged off. The following tables present the activity in the ACL - loans by portfolio segment for the three months ended March 31, 2025 and the three months ended March 31, 2024:
(In thousands) |  | Balance at December 31, 2024 |  | Charge offs |  | Recoveries |  | Net loans (charged off) recovered |  | Provision/(Benefit) for credit losses |  | Three Months Ended March 31, 2025
Commercial Real Estate |  |  |  |  |  |  |  |  |  |  |  |
CRE Nonowner Occupied |  | 11,047 |  |  | — |  |  | 1 |  |  | 1 |  |  | (668) |  |  | 10,380 |
CRE Owner Occupied |  | 5,243 |  |  | — |  |  | — |  |  | — |  |  | 479 |  |  | 5,722 |
Multifamily |  | 3,432 |  |  | — |  |  | — |  |  | — |  |  | (108) |  |  | 3,324 |
Farmland |  | 1,932 |  |  | — |  |  | — |  |  | — |  |  | 143 |  |  | 2,075 |
Commercial and industrial |  | 7,122 |  |  | — |  |  | 6 |  |  | 6 |  |  | 736 |  |  | 7,864 |
Construction |  |  |  |  |  |  |  |  |  |  |  |
Residential Construction |  | 931 |  |  | — |  |  | — |  |  | — |  |  | (101) |  |  | 830 |
Other Construction |  | 2,131 |  |  | — |  |  | — |  |  | — |  |  | (232) |  |  | 1,899 |
Residential Mortgage |  |  |  |  |  |  |  |  |  |  |  |
1-4 Family 1st Lien |  | 1,503 |  |  | — |  |  | 2 |  |  | 2 |  |  | 77 |  |  | 1,582 |
1-4 Family Rental |  | 1,756 |  |  | — |  |  | — |  |  | — |  |  | (16) |  |  | 1,740 |
HELOC and Junior Liens |  | 392 |  |  | — |  |  | — |  |  | — |  |  | 12 |  |  | 404 |
Consumer |  | 25 |  |  | (15) |  |  | 9 |  |  | (6) |  |  | (1) |  |  | 18 |
Total |  | 35,514 |  |  | (15) |  |  | 18 |  |  | 3 |  |  | 321 |  |  | 35,838 |
(In thousands) |  | Balance at December 31, 2023 |  |  |  |  |  | Charge offs |  | Recoveries |  | Net loans (charged off) recovered |  | (Benefit)/Provision for credit losses |  | Three Months Ended March 31, 2024
Commercial Real Estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
CRE Nonowner Occupied |  | $ | 10,267 |  |  |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 150 |  |  | $ | 10,417 |
CRE Owner Occupied |  | 5,646 |  |  |  |  |  |  | — |  |  | — |  |  | — |  |  | (44) |  |  | 5,602 |
Multifamily |  | 2,202 |  |  |  |  |  |  | — |  |  | — |  |  | — |  |  | 168 |  |  | 2,370 |
Farmland |  | 2,064 |  |  |  |  |  |  | — |  |  | — |  |  | — |  |  | (62) |  |  | 2,002 |
Commercial and industrial |  | 7,131 |  |  |  |  |  |  | — |  |  | — |  |  | — |  |  | (631) |  |  | 6,500 |
Construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential Construction |  | 1,256 |  |  |  |  |  |  | — |  |  | — |  |  | — |  |  | (80) |  |  | 1,176 |
Other Construction |  | 2,146 |  |  |  |  |  |  | — |  |  | — |  |  | — |  |  | 25 |  |  | 2,171 |
Residential Mortgage |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
1-4 Family 1st Lien |  | 1,207 |  |  |  |  |  |  | (7) |  |  | — |  |  | (7) |  |  | 71 |  |  | 1,271 |
1-4 Family Rental |  | 1,859 |  |  |  |  |  |  | — |  |  | — |  |  | — |  |  | (320) |  |  | 1,539 |
HELOC and Junior Liens |  | 389 |  |  |  |  |  |  | (21) |  |  | — |  |  | (21) |  |  | 89 |  |  | 457 |
Consumer |  | 20 |  |  |  |  |  |  | (22) |  |  | 6 |  |  | (16) |  |  | 15 |  |  | 19 |
Total |  | $ | 34,187 |  |  |  |  |  |  | $ | (50) |  |  | $ | 6 |  |  | $ | (44) |  |  | $ | (619) |  |  | $ | 33,524 |
The following table presents the ACL for loans and the amortized cost basis of the loans by the measurement methodology used as of March 31, 2025 and December 31, 2024:
(In thousands) | ACL - Loans |  |  |  | Loans |  |
March 31, 2025 | Collectively Evaluated for Credit Loss |  | Individually Evaluated for Credit Loss |  | Total ACL - Loans |  | Collectively Evaluated for Credit Loss |  | Individually Evaluated for Credit Loss |  | Total Loans
Commercial real estate |  |  |  |  |  |  |  |  |  |  |
CRE Nonowner Occupied | $ | 8,823 |  |  | $ | 1,557 |  |  | $ | 10,380 |  |  | $ | 1,258,234 |  |  | $ | 13,919 |  |  | $ | 1,272,153 |
CRE Owner Occupied | 5,722 |  |  | — |  |  | 5,722 |  |  | 652,273 |  |  | 2,032 |  |  | 654,305 |
Multifamily | 3,324 |  |  | — |  |  | 3,324 |  |  | 410,384 |  |  | 147 |  |  | 410,531 |
Farmland | 2,075 |  |  | — |  |  | 2,075 |  |  | 226,033 |  |  | — |  |  | 226,033 |
Commercial and industrial | 7,038 |  |  | 826 |  |  | 7,864 |  |  | 715,095 |  |  | 5,600 |  |  | 720,695 |
Construction |  |  |  |  |  |  |  |  |  |  |
Residential Construction | 830 |  |  | — |  |  | 830 |  |  | 88,196 |  |  | — |  |  | 88,196 |
Other Construction | 1,899 |  |  | — |  |  | 1,899 |  |  | 321,015 |  |  | — |  |  | 321,015 |
Residential mortgage |  |  |  |  |  |  |  |  |  |  |
1-4 Family 1st Lien | 1,582 |  |  | — |  |  | 1,582 |  |  | 311,508 |  |  | 654 |  |  | 312,162 |
1-4 Family Rental | 1,740 |  |  | — |  |  | 1,740 |  |  | 339,720 |  |  | 160 |  |  | 339,880 |
HELOC and Junior Liens | 404 |  |  | — |  |  | 404 |  |  | 137,847 |  |  | 1,533 |  |  | 139,380 |
Consumer | 18 |  |  | — |  |  | 18 |  |  | 6,817 |  |  | — |  |  | 6,817 |
Total | $ | 33,455 |  |  | $ | 2,383 |  |  | $ | 35,838 |  |  | $ | 4,467,122 |  |  | $ | 24,045 |  |  | $ | 4,491,167 |
(In thousands) | ACL - Loans |  |  |  | Loans |  |
December 31, 2024 | Collectively Evaluated for Credit Loss |  | Individually Evaluated for Credit Loss |  | Total ACL - Loans |  | Collectively Evaluated for Credit Loss |  | Individually Evaluated for Credit Loss |  | Total Loans
Commercial real estate |  |  |  |  |  |  |  |  |  |  |
CRE Nonowner Occupied | $ | 9,945 |  |  | $ | 1,102 |  |  | $ | 11,047 |  |  | $ | 1,237,235 |  |  | $ | 13,775 |  |  | $ | 1,251,010 |
CRE Owner Occupied | 5,243 |  |  | — |  |  | 5,243 |  |  | 623,461 |  |  | 546 |  |  | 624,007 |
Multifamily | 3,432 |  |  | — |  |  | 3,432 |  |  | 412,746 |  |  | 154 |  |  | 412,900 |
Farmland | 1,932 |  |  | — |  |  | 1,932 |  |  | 224,709 |  |  | — |  |  | 224,709 |
Commercial and industrial | 6,785 |  |  | 337 |  |  | 7,122 |  |  | 700,740 |  |  | 4,652 |  |  | 705,392 |
Construction |  |  |  |  |  |  |  |  |  |  |
Residential Construction | 931 |  |  | — |  |  | 931 |  |  | 99,399 |  |  | — |  |  | 99,399 |
Other Construction | 2,131 |  |  | — |  |  | 2,131 |  |  | 326,171 |  |  | — |  |  | 326,171 |
Residential mortgage |  |  |  |  |  |  |  |  |  |  |
1-4 Family 1st Lien | 1,503 |  |  | — |  |  | 1,503 |  |  | 312,564 |  |  | 1,028 |  |  | 313,592 |
1-4 Family Rental | 1,756 |  |  | — |  |  | 1,756 |  |  | 336,460 |  |  | 176 |  |  | 336,636 |
HELOC and Junior Liens | 392 |  |  | — |  |  | 392 |  |  | 138,113 |  |  | 2,279 |  |  | 140,392 |
Consumer | 25 |  |  | — |  |  | 25 |  |  | 8,862 |  |  | — |  |  | 8,862 |
Total | $ | 34,075 |  |  | $ | 1,439 |  |  | $ | 35,514 |  |  | $ | 4,420,460 |  |  | $ | 22,610 |  |  | $ | 4,443,070 |
Modifications to Borrowers Experiencing Financial Difficulty From time to time, we may modify certain loans to borrowers who are experiencing financial difficulty. In some cases, these modifications may result in new loans. Loan modifications to borrowers experiencing financial difficulty may be in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, or a term extension, or a combination thereof, among other things. There were no new modifications to borrowers experiencing financial difficulty for the three months ended March 31, 2025. Information related to loans modified (by type of modification) for the three months ended March 31, 2024, whereby the borrower was experiencing financial difficulty at the time of modification, is set forth in the following table:
(In thousands) | Interest Only |  | Term Extension |  | Combination: Interest Only and Term Extension |  | Total |  | % of Total Class of Financing Receivable
Three months ended March 31, 2024 |  |  |  |
HELOC and Junior Liens | $ | — |  |  | $ | — |  |  | $ | 92 |  |  | $ | 92 |  |  | 0.01 |
Total Residential Mortgage | — |  |  | — |  |  | 92 |  |  | 92 |  |  | 0.01 |
Total | $ | — |  |  | $ | — |  |  | $ | 92 |  |  | $ | 92 |  |  |
The financial effects of the interest-only loan modifications reduced the monthly payment amounts for the borrower and the term extensions in the table above added 2.0 years to the life of the loan, which also reduced the monthly payment amounts for the borrower. As of March 31, 2025, there were no defaulted troubled debt restructured loans, as all troubled debt restructured loans were current with respect to their associated forbearance agreements. There were also no defaults on troubled debt restructured loans within twelve months of restructure during 2024.

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