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Loans and Allowance for Credit Losses

9 Months Ended

Sep. 30, 2024

Loans and Allowance for Credit Losses on Loans

The majority of the disclosures in this footnote are prepared at the class level, which is equivalent to the call report or call code classification. The roll forward of the allowance for credit losses is presented at the portfolio segment level. Accrued interest receivable on loans of $10,326,000 and $4,752,000 at September 30, 2024 and December 31, 2023 respectively is not included in the loan tables below and is included in other assets on the Company’s balance sheets. Outstanding loans are summarized by class as follows:


Loan Type (Dollars in thousands)	September 30, 2024		December 31, 2023
Commercial:
Commercial and industrial	$	143,876	$	105,466
Agricultural production	16,940		33,556
Total commercial	160,816		139,022
Real estate:
Construction & other land loans	85,135		33,472
Commercial real estate - owner occupied	308,472		215,146
Commercial real estate - non-owner occupied	902,393		539,522
Farmland	138,544		120,674
Multi-family residential	131,013		61,307
1-4 family - close-ended	125,405		96,558
1-4 family - revolving	35,482		27,648
Total real estate	1,726,444		1,094,327
Consumer:
Manufactured housing	320,786		—
Other installment	87,133		55,606
Total consumer	407,919		55,606
Total gross loans	2,295,179		1,288,955
Net deferred origination costs	1,964		1,842
Loans, net of deferred origination costs	2,297,143		1,290,797
Allowance for credit losses	(24,891)		(14,653)
Total loans, net	$	2,272,252	$	1,276,144

At September 30, 2024 and December 31, 2023, loans originated under Small Business Administration (SBA) programs totaling $22,286,000 and $18,246,000, respectively, were included in the real estate and commercial categories, of which, $17,011,000 or 76% and $13,955,000 or 76%, respectively, are secured by government guarantees.

Allowance for Credit Losses on Loans

The measurement of the allowance for credit losses on collectively evaluated loans is based on modeled expectations of lifetime expected credit losses utilizing national and local peer group historical losses, weighting of economic scenarios, and other relevant factors. The Company incorporates forward-looking information using macroeconomic scenarios, which include variables that are considered key drivers of credit losses within the portfolio. The Company uses a probability-weighted, multiple scenario forecast approach. These scenarios may consist of a base forecast representing the most likely outcome, combined with downside or upside scenarios reflecting possible worsening or improving economic conditions.

When a loan no longer shares similar risk characteristics with other loans, such as in the case of certain nonaccrual loans, the Company estimates the allowance for credit losses on an individual loan basis.

The following table shows the summary of activities for the allowance for credit losses for the three months ended September 30, 2024 and 2023 by portfolio segment (in thousands):


	Commercial		Commercial Real Estate		1-4 Family Real Estate		Consumer		Total
Allowance for credit losses:
Beginning balance, July 1, 2024	$	1,477	$	16,626	$	2,965	$	3,872	$	24,940
(Credit) provision for credit losses (1)	(256)		1,056		(146)		(865)		(211)
Charge-offs	(5)		—		—		(15)		(20)
Recoveries	51		6		59		66		182
Ending balance, September 30, 2024	$	1,267	$	17,688	$	2,878	$	3,058	$	24,891

(1) Represents (credit) provision to credit losses for loans only. The credit to the provision for credit losses on the Consolidated Statements of Income of $(518) includes a $(219) credit for held-to-maturity securities and a $(88) credit for unfunded loan commitments.


	Commercial		Commercial Real Estate		1-4 Family Real Estate		Consumer		Total
Allowance for credit losses:
Beginning balance, July 1, 2023	$	1,477	$	10,684	$	2,489	$	813	$	15,463

Provision (credit) for credit losses (1)	161		195		(71)		(20)		265
Charge-offs	(236)		—		—		(18)		(254)
Recoveries	38		—		2		20		60
Ending balance, September 30, 2023	$	1,440	$	10,879	$	2,420	$	795	$	15,534

(1) Represents provision (credit) to credit losses for loans only. The provision for credit losses on the Consolidated Statements of Income of $186 includes a $(175) credit for held-to-maturity securities and a $96 provision for unfunded loan commitments.

The following table shows the summary of activities for the allowance for credit losses as of and for the nine months ended September 30, 2024 and 2023 by portfolio segment (in thousands):


	Commercial		Commercial Real Estate		1-4 Family Real Estate		Consumer		Total
Allowance for credit losses:
Beginning balance, January 1, 2024	$	1,475	$	9,792	$	2,435	$	951	$	14,653
Allowance for loan loss on purchased credit deteriorated loans (PCD)	375		371		2		73		821
(Credit) provision for credit losses (1)	(76)		7,495		374		2,028		9,821
Charge-offs	(558)		—		—		(90)		(648)
Recoveries	51		30		67		96		244
Ending balance, September 30, 2024	$	1,267	$	17,688	$	2,878	$	3,058	$	24,891

(1) Represents credit losses for loans only. The provision for credit losses on the Consolidated Statements of Income of $9,889 includes a $(194) credit for held-to-maturity securities and a $262 provision for unfunded loan commitments.


	Commercial		Commercial Real Estate		1-4 Family		Consumer		Unallocated		Total
Allowance for credit losses:
Beginning balance, January 1, 2023 prior to adoption of ASU 2016-13 (CECL)	$	1,814	$	7,803	$	607	$	284	$	340	$	10,848
Impact of adoption of ASU 2016-13	454		1,693		1,614		489		(340)		3,910
(Credit) provision for credit losses (1)	(630)		1,383		184		30		—		967
Charge-offs	(558)		—		—		(53)		—		(611)
Recoveries	360		—		15		45		—		420
Ending balance, September 30, 2023	$	1,440	$	10,879	$	2,420	$	795	$	—	$	15,534

(1) Represents credit losses for loans only. The provision for credit losses on the Consolidated Statements of Income of $476 includes a $(495) credit for held-to-maturity securities and a $4 provision for unfunded loan commitments.

The following table presents the composition of nonaccrual loans as of September 30, 2024 (in thousands). There were no loans on nonaccrual as of December 31, 2023


	September 30, 2024
	With an ACL		Without an ACL		Total Nonaccrual
Commercial real estate - owner occupied	$	—	$	128	$	128
Commercial real estate - non-owner occupied	—		378		378
Farmland	—		1,525		1,525
1-4 family real estate			618		618
Manufactured housing	—		601		601
Total	$	—	$	3,250	$	3,250

During the three and nine month periods ended September 30, 2024, the provision for credit losses was primarily driven by loan growth and fluctuations in the economic forecasts utilized by the Company. The Company adjusted the weightings utilized for the most likely, downside, or upside economic economic scenarios during the three month period ending September 30, 2024 to reflect a higher weighting towards the downside economic scenario. The Company updated its peer group during the second quarter of 2024, adding peer banks within the central coast of California and also larger peer banks due to the Company’s expanded footprint and increased asset size. During the quarter, the allowance for loan loss remained relatively stable, with a small credit based primarily on the net recoveries during the quarter and also improved loss rates. Management believes that the allowance for credit losses at September 30, 2024 appropriately reflected expected credit losses in the loan portfolio at that date.

The following table presents the amortized cost basis of collateral dependent loans by class of loans and by collateral type as of the dates indicated as of September 30, 2024 (in thousands). As of December 31, 2023, there were no collateral dependent loans.


	September 30, 2024
	Manufactured Homes		Real Estate		Machinery & Equipment		Total
Commercial real estate - owner occupied	$	—	$	128	$	—	$	128
Commercial real estate - non-owner occupied	—		—		378		378
Farmland	—		1,525		—		1,525
1-4 family real estate	—		618		—		618
Manufactured housing	601		—		—		601
Total	$	601	$	2,271	$	378	$	3,250

Purchased loans and leases that reflect a more-than-significant deterioration of credit quality from origination are considered PCD. At the time of acquisition, the initial estimate of expected losses is recognized in the ACL. The following table provides a summary of loans and leases purchased as part of the acquisition with credit deterioration at the time of acquisition of April 1, 2024 (in thousands):


	April 1, 2024
	Par Value of Loans Acquired		Allowance for Credit Losses at Acquisition		Non-Credit Discount at Acquisition		Purchase Price of Loans at Acquisition
Commercial	$	7,360	$	(375)	$	(416)	$	6,569
Commercial real estate	20,622		(359)		(1,037)		19,226
Farmland	1,617		(12)		(56)		1,549
1-4 family real estate	572		(2)		(24)		546
Manufacturing housing	947		(73)		(11)		863
Total	$	31,118	$	(821)	$	(1,544)	$	28,753

The Company utilizes an internal asset classification system as a means of reporting problem and potential problem loans. Loan ratings are reviewed as part of the Company's normal loan monitoring process, but, at a minimum, updated on an annual basis. Under the Company’s risk rating system, the Company rates loans with potential problems as “Special Mention,” “Substandard,” “Doubtful,” and “Loss”. The following is a description of the characteristics of loan ratings.

Special Mention - A Special Mention loan has potential weaknesses that require management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the Company's credit position at some future date. Special mention assets are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification.

Substandard - A Substandard loan is inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. These loans have a well-defined weakness or weaknesses that jeopardize the full collection of amounts due. They are characterized by the distinct possibility that the Company will sustain some loss if the borrower’s deficiencies are not corrected.

Doubtful - A loan classified Doubtful has all the weaknesses inherent in one 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. The possibility of loss is extremely high, but because of certain important and reasonably specific pending factors, which may work to the advantage and strengthening of the loan, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors include proposed merger, acquisition or liquidation procedures, capital injection, perfecting liens on additional collateral and refinancing plans.

Loss - Loans classified Loss are considered uncollectible and of such little value that their continuance as bankable loans is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this loan even though partial recovery may be realized in the future. Losses are taken in the period in which they are considered uncollectible.

Loans not meeting the criteria above are considered to be pass-rated loans.

The following table shows the loan portfolio by class, net of deferred costs, allocated by management’s internal risk ratings for the period indicated. The following table also shows the charge-offs recognized during the nine months ended September 30, 2024 (in thousands):


	Term Loans Amortized Cost Basis by Origination Year As of September 30, 2024
	2024		2023		2022		2021		2020		Prior		Revolving Loans		Revolving Converted to Term		Total
Commercial and industrial
Pass/Watch	$	24,787	$	13,826	$	16,698	$	15,909	$	4,962	$	10,017	$	45,665	$	1,022	$	132,886
Special mention	—		—		—		1,600		—		—		6,650		—		8,250
Substandard	—		49		1,569		—		21		1,158		40		—		2,837
Total	$	24,787	$	13,875	$	18,267	$	17,509	$	4,983	$	11,175	$	52,355	$	1,022	$	143,973
Current period gross write-offs	$	—	$	—	$	5	$	—	$	—	$	46	$	—	$	—	$	51

Agricultural production
Pass/Watch	$	686	$	284	$	—	$	10	$	354	$	317	$	15,348	$	—	$	16,999
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Total	$	686	$	284	$	—	$	10	$	354	$	317	$	15,348	$	—	$	16,999
Current period gross write-offs	$	—	$	—	$	507	$	—	$	—	$	—	$	—	$	—	$	507



Construction & other land loans
Pass/Watch	$	8,852	$	22,893	$	30,986	$	16,054	$	701	$	3,882	$	1,462	$	—	$	84,830
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Total	$	8,852	$	22,893	$	30,986	$	16,054	$	701	$	3,882	$	1,462	$	—	$	84,830
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial real estate - owner occupied
Pass/Watch	$	26,748	$	23,473	$	44,486	$	43,627	$	31,962	$	122,904	$	5,977	$	—	$	299,177
Special mention	—		1,772		—		—		161		2,976		—		—		4,909
Substandard	—		—		—		—		937		3,316		—		—		4,253
Total	$	26,748	$	25,245	$	44,486	$	43,627	$	33,060	$	129,196	$	5,977	$	—	$	308,339
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial real estate - non-owner occupied
Pass/Watch	$	81,918	$	110,152	$	178,715	$	120,107	$	76,488	$	267,439	$	34,447	$	1,250	$	870,516
Special mention	—		—		593		—		—		6,427		—		—		7,020
Substandard	—		—		—		8,012		—		15,889		—		—		23,901
Total	$	81,918	$	110,152	$	179,308	$	128,119	$	76,488	$	289,755	$	34,447	$	1,250	$	901,437
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Farmland
Pass/Watch	$	4,713	$	4,964	$	21,354	$	12,466	$	29,120	$	46,609	$	4,538	$	—	$	123,764
Special mention	—		4,025		3,312		—		—		—		1,283		—		8,620
Substandard	—		—		—		—		2,029		4,064		—		—		6,093
Total	$	4,713	$	8,989	$	24,666	$	12,466	$	31,149	$	50,673	$	5,821	$	—	$	138,477
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Multi-family residential
Pass/Watch	$	8,320	$	2,974	$	31,082	$	45,904	$	13,632	$	26,745	$	2,325	$	—	$	130,982
Special mention	—		—		—		—		—		—		—		—		—
Substandard			—		—		—		—		—		—		—		—
Total	$	8,320	$	2,974	$	31,082	$	45,904	$	13,632	$	26,745	$	2,325	$	—	$	130,982
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

1-4 family - close-ended
Pass/Watch	$	2,386	$	5,480	$	65,674	$	13,815	$	7,472	$	25,539	$	3,869	$	—	$	124,235
Special mention	—		—		—		—		—		—		—		—		—
Substandard	78		—		618		—		—		553		—		—		1,249
Total	$	2,464	$	5,480	$	66,292	$	13,815	$	7,472	$	26,092	$	3,869	$	—	$	125,484
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

1-4 family - revolving


Pass/Watch	$	—	$	—	$	—	$	—	$	—	$	—	$	29,511	$	5,882	$	35,393
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		313		313
Total	$	—	$	—	$	—	$	—	$	—	$	—	$	29,511	$	6,195	$	35,706
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Manufactured Housing
Pass/Watch	$	38,366	$	43,977	$	48,451	$	41,634	$	38,906	$	108,571	$	—	$	—	$	319,905
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		221		658		—		—		879
Total	$	38,366	$	43,977	$	48,451	$	41,634	$	39,127	$	109,229	$	—	$	—	$	320,784
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Consumer
Pass/Watch	$	43,783	$	25,725	$	6,587	$	5,448	$	1,628	$	6,114	$	735	$	—	$	90,020
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		7		63		26		16		—		—		—		112
Total	$	43,783	$	25,732	$	6,650	$	5,474	$	1,644	$	6,114	$	735	$	—	$	90,132
Current period gross write-offs	$	16	$	10	$	50	$	—	$	—	$	13	$	1	$	—	$	90

Total loans outstanding (risk rating):
Pass/Watch	$	240,559	$	253,748	$	444,033	$	314,974	$	205,225	$	618,137	$	143,877	$	8,154	$	2,228,707
Special mention	—		5,797		3,905		1,600		161		9,403		7,933		—		28,799
Substandard	78		56		2,250		8,038		3,224		25,638		40		313		39,637
Grand Total	$	240,637	$	259,601	$	450,188	$	324,612	$	208,610	$	653,178	$	151,850	$	8,467	$	2,297,143
Current period total gross write-offs	$	16	$	10	$	562	$	—	$	—	$	59	$	1	$	—	$	648

The following table shows the loan portfolio by class, net of deferred costs, allocated by management’s internal risk ratings for the period indicated. The following table also shows the charge-offs recognized during the twelve months ended December 31, 2023 (in thousands):


	Term Loans Amortized Cost Basis by Origination Year As of December 31, 2023
	2023		2022		2021		2020		2019		Prior		Revolving Loans		Revolving Converted to Term		Total
Commercial and industrial
Pass/Watch	$	19,886	$	17,129	$	21,050	$	4,643	$	1,561	$	6,980	$	29,391	$	215	$	100,855
Special mention	—		277		139		183		107		272		3,750		—		4,728
Substandard	—		—		—		156		—		66		—		—		222
Total	$	19,886	$	17,406	$	21,189	$	4,982	$	1,668	$	7,318	$	33,141	$	215	$	105,805
Current period gross write-offs	$	241	$	—	$	323	$	—	$	—	$	—	$	—	$	—	$	564

Agricultural production
Pass/Watch	$	153	$	830	$	14	$	—	$	251	$	112	$	30,241	$	999	$	32,600
Special mention	—		—		—		—		—		—		—		—		—


Substandard	—		676		—		—		—		—		300		—		976
Total	$	153	$	1,506	$	14	$	—	$	251	$	112	$	30,541	$	999	$	33,576
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Construction & other land loans
Pass/Watch	$	6,953	$	15,593	$	1,305	$	701	$	1,538	$	3,039	$	4,167	$	—	$	33,296
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Total	$	6,953	$	15,593	$	1,305	$	701	$	1,538	$	3,039	$	4,167	$	—	$	33,296
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial real estate - owner occupied
Pass/Watch	$	20,648	$	25,132	$	20,783	$	39,356	$	21,831	$	80,384	$	3,207	$	—	$	211,341
Special mention	—		—		—		—		—		3,026		272		—		3,298
Substandard	—		—		—		—		—		497		—		—		497
Total	$	20,648	$	25,132	$	20,783	$	39,356	$	21,831	$	83,907	$	3,479	$	—	$	215,136
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial real estate - non-owner occupied
Pass/Watch	$	81,153	$	115,031	$	77,375	$	38,307	$	12,181	$	175,419	$	19,218	$	3,216	$	521,900
Special mention	—		600		—		—		—		374		—		—		974
Substandard	—		—		—		—		13,625		2,344		—		—		15,969
Total	$	81,153	$	115,631	$	77,375	$	38,307	$	25,806	$	178,137	$	19,218	$	3,216	$	538,843
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Farmland
Pass/Watch	$	8,382	$	24,063	$	10,873	$	29,770	$	11,155	$	23,324	$	8,695	$	1,955	$	118,217
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		2,213		—		200		—		—		2,413
Total	$	8,382	$	24,063	$	10,873	$	31,983	$	11,155	$	23,524	$	8,695	$	1,955	$	120,630
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Multi-family residential
Pass/Watch	$	2,988	$	1,847	$	38,644	$	2,364	$	4,538	$	10,417	$	532	$	—	$	61,330
Special mention	—		—		—		—		—		—		—		—		—
Substandard			—		—		—		—		—		—		—		—
Total	$	2,988	$	1,847	$	38,644	$	2,364	$	4,538	$	10,417	$	532	$	—	$	61,330
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

1-4 family - close-ended
Pass/Watch	$	1,689	$	64,056	$	7,898	$	2,259	$	1,703	$	18,237	$	—	$	809	$	96,651
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Total	$	1,689	$	64,056	$	7,898	$	2,259	$	1,703	$	18,237	$	—	$	809	$	96,651


Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

1-4 family - revolving
Pass/Watch	$	—	$	—	$	—	$	—	$	—	$	—	$	21,662	$	6,213	$	27,875
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	—	$	—	$	—	$	21,662	$	6,213	$	27,875
Current period gross write-offs	$	75	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	75

Consumer
Pass/Watch	$	34,866	$	8,745	$	6,503	$	2,265	$	2,007	$	2,398	$	643	$	4	$	57,431
Special mention	—		—		—		—		—		—		—		—		—
Substandard	182		—		42		—		—		—		—		—		224
Total	$	35,048	$	8,745	$	6,545	$	2,265	$	2,007	$	2,398	$	643	$	4	$	57,655
Current period gross write-offs	$	23	$	—	$	—	$	—	$	27	$	—	$	—	$	—	$	50

Total loans outstanding (risk rating):
Pass/Watch	$	176,718	$	272,426	$	184,445	$	119,665	$	56,765	$	320,310	$	117,756	$	13,411	$	1,261,496
Special mention	—		877		139		183		107		3,672		4,022		—		9,000
Substandard	182		676		42		2,369		13,625		3,107		300		—		20,301
Grand Total	$	176,900	$	273,979	$	184,626	$	122,217	$	70,497	$	327,089	$	122,078	$	13,411	$	1,290,797
Current period total gross write-offs	$	339	$	—	$	323	$	—	$	27	$	—	$	—	$	—	$	689

The following table shows an aging analysis of the loan portfolio by class at September 30, 2024 (in thousands):


	30-59 Days Past Due		60-89 Days Past Due		Greater Than 89 Days Past Due		Total Past Due		Current		Total Loans		Loans Past Due > 89 Days, Still Accruing		Non-accrual
Commercial:
Commercial and industrial	$	150	$	49	$	—	$	199	$	143,677	$	143,876	$	—	$	—
Agricultural production	—		—		—		—		16,940		16,940		—		—
Real estate:
Construction & other land loans	—		—		—		—		85,135		85,135		—		—
Commercial real estate - owner occupied	154		—		—		154		308,318		308,472		—		128
Commercial real estate - non-owner occupied	—		378		—		378		902,015		902,393		—		378
Farmland	1,141		—		384		1,525		137,019		138,544		—		1,525
Multi-family residential	—		—		—		—		131,013		131,013		—		—
1-4 family - close-ended	—		2,517		618		3,135		122,270		125,405		—		618
1-4 family - revolving	—		—		133		133		35,349		35,482		133		—
Consumer:
Manufactured housing	924		—		—		924		319,862		320,786		—		601
Other installment	28		63		—		91		87,042		87,133		—		—
Deferred fees	—		—		—		—		1,964		1,964		—		—
Total	$	2,397	$	3,007	$	1,135	$	6,539	$	2,290,604	$	2,297,143	$	133	$	3,250

The following table shows an aging analysis of the loan portfolio by class at December 31, 2023 (in thousands):


	30-59 Days Past Due		60-89 Days Past Due		Greater Than 89 Days Past Due		Total Past Due		Current		Total Loans		Loans Past Due > 89 Days, Still Accruing		Non- accrual
Commercial:
Commercial and industrial	$	25	$	—	$	—	$	25	$	105,441	$	105,466	$	—	$	—
Agricultural production	507		—		—		507		33,049		33,556		—		—
Real estate:	—
Construction & other land loans	—		—		—		—		33,472		33,472		—		—
Commercial real estate - owner occupied	—		—		—		—		215,146		215,146		—		—
Commercial real estate - non-owner occupied	—		—		—		—		539,522		539,522		—		—
Farmland	—		—		—		—		120,674		120,674		—		—
Multi-family residential	—		—		—		—		61,307		61,307		—		—
1-4 family - close-ended	2,973		—		—		2,973		93,585		96,558		—		—
1-4 family - revolving	—		—		—		—		27,648		27,648		—		—

Consumer	169		68		—		237		55,369		55,606		—		—
Deferred fees	—		—		—		—		1,842		1,842		—		—
Total	$	3,674	$	68	$	—	$	3,742	$	1,287,055	$	1,290,797	$	—	$	—

There was $59,000 and $142,000 foregone interest on nonaccrual loans for the three and nine month periods ended September 30, 2024, respectively. There was no foregone interest on nonaccrual loans for the three or nine months periods ended September 30, 2023.

Occasionally, the Company modifies loans to borrowers in financial distress by providing reductions of the stated interest rate of the loan or an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk. There were no loan modifications granted to borrowers experiencing financial difficulty during the three or nine month period ended September 30, 2024 and 2023.